Federal Corporate Fraud Defense Attorney
The Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) aggressively prosecute valid cases of bribery, corruption, and similar corporate criminal activities, which is known as "corporate fraud.”
Federal corporate fraud cases are usually complex as they involve several different statutes. If you were accused of committing corporate or business fraud, you face potentially life-altering consequences that can ruin a career that took a lifetime to achieve.
A favorable resolution against these allegations often depends on your defense attorney's ability to negotiate and reduce the loss.
White-collar crime within a business by people who are considered trustworthy includes many common federal offenses, such as extortion, forgery, bribery, and counterfeiting.
Company executives and board members could face criminal liability if federal law enforcement agencies discover evidence. If you are under criminal investigation for fraud within your business, you need legal guidance from an experienced federal criminal lawyer. Let's take a closer look below.
What Are Corporate Crimes?
Some of the most common corporate-related federal laws include the following:
- Foreign Corrupt Practices Act (FPCA);
- Internal Revenue Code (IRC);
- International Traffic in Arms Regulations (ITAR);
- The Food, Drug, and Cosmetic Act (FDCA);
- The Securities Exchange Act;
- The Sherman Antitrust Act.
The state and federal authorities punish corporations for misrepresenting facts to gain an advantage, including criminal fraud charges against their management team. Corporate fraud crimes include the following:
- 18 U.S.C. 1001 – general false statements law,
- 18 U.S.C. 1031 – primary fraud schemes law,
- 18 U.S.C. 1341 – mail fraud,
- 18 U.S.C. 1343 - wire fraud by electronic means,
- 18 U.S.C. 1347 - healthcare fraud,
- 18 U.S.C. 1348 - securities or commodities fraud,
- 18 U.S.C. 1956 - laundering of monetary instruments,
- 18 U.S.C. 472 - counterfeit obligations,
- 18 U.S.C. 873 - extortion and blackmail,
These federal offenses could result in substantial prison time if convicted. Other types of corporate fraud crimes include the following:
- Bribery occurs when money or goods are offered to someone in exchange for influencing their judgment. Bribery can happen between two companies or a company and a government official.
- Corruption typically involves large-scale kickbacks, money laundering, and other criminal activities to help someone gain an unfair advantage.
- Fraud is the most common type of white-collar crime involving deception to gain a financial benefit, such as accounting fraud, tax fraud, and insurance fraud.
- Insider Trading occurs when somebody uses non-public information to make investment decisions that will give them an unfair advantage over other investors.
- Money Laundering occurs when someone concealsthe origins of illegally-obtained money and is often accomplished through complex financial transactions.
- Anti-trust Violations often occur when companies engage in price-fixing, bid-rigging, and other anti-competitive practices.
- Corporate Espionage occurs when someone steals trade secrets or confidential information from a competitor for an unfair advantage.
What Are the Common Types of Illegal Conduct?
Corporate fraud is frequently a highly complex law covered under multiple federal statutes and committed by business executives and accountants.
The illegal activity commonly manipulates information with the intent to deceive and defraud. Federal law enforcement agencies, such as the Federal Bureau of Investigation (FBI), often discover corporate fraud using audits. Some of the common types of illegal conduct include the following:
- Misrepresenting the value of a business,
- Concealing assets or debts,
- False tax returns or accounting entries,
- Fraudulent sales and receipts,
- Fraudulent bookkeeping schemes,
- Embezzlement of corporate funds,
- Stealing trade secrets,
- Use of business funds for personal gain,
- Fraudulent transfer of corporate assets,
- Misuse of corporate retirement funds,
- Transactions to evade regulators.
What Should You Do If Under an Investigation?
If you received a grand jury subpoena or a search warrant executed at your property, you must retain a federal criminal defense lawyer immediately.
Federal investigators often gather evidence and build a criminal case before an indictment, meaning they typically have solid evidence to convict you.
The FBI prioritizes corporate fraud investigations due to the significant harm corporate fraud causes to investors and the economy. They work closely with other agencies to detect and prosecute corporate fraud, such as the following:
- Securities and Exchange Commission,
- Commodity Futures Trading Commission,
- Internal Revenue Service,
- Department of Labor,
- Federal Energy Regulatory Commission, and
- U.S. Postal Inspection Service.
Corporate fraud detection usually involves an agency reporting compliance violations. You will need a seasoned federal criminal lawyer to have the best chance at a favorable outcome, who can do the following:
- Closely analyze the accusations against you or your company,
- Evaluate the strength or weaknesses of the evidence,
- Gather documentation and witness statements,
- Examine all the potential legal defenses,
- Respond to federal government investigators,
- Negotiate with the federal prosecutors on the case,
- Take the case to a trial, if necessary.
Any effective defense strategy can only be developed after thoroughly reviewing all the documentation. Any fraud usually focuses on the crucial element of intent, knowledge, and state of mind. Negotiating with the federal prosecutor for a favorable plea bargain might be possible.
Eisner Gorin LLP is located in Los Angeles, California. We provide legal representation across the United States on federal criminal matters. You can contact us for an initial case evaluation via phone or the contact form.