Being investigated due to another’s suspicion that you have committed fraud is a serious matter. This can be especially true for individuals with significant assets, business interests or public reputations on the line. Given how much is at stake, it is important to proceed with great caution.
Whether an allegation involves securities fraud, wire fraud, healthcare fraud or another white collar offense, the early stages of an investigation are often the most critical. If you are being scrutinized, how you respond to such concerns can either protect your interests or compromise the strength of any defense you may need to present down the line.
Treading strategically
The first and most dangerous mistake you can make is speaking to investigators without legal counsel. Even seemingly casual conversations with federal agents or regulatory authorities can have serious implications. Statements made early in an investigation, even if unintentional or incomplete, can later be used against you. Law enforcement professionals are trained to gather evidence from interviews. Anything you say can be misconstrued or taken out of context. Always consult with an experienced white collar defense attorney before agreeing to any interview, no matter how informal it may seem.
Another common error is attempting to manage the situation quietly or internally without professional legal guidance. High-level executives and entrepreneurs are used to taking control, but criminal investigations require specialized knowledge. Relying on in-house counsel or personal advisors not trained in criminal defense can lead to strategic mistakes. Retaining an attorney who has handled high-stakes fraud investigations allows you to respond proactively while protecting your rights at every stage of the process.
Destroying documents or deleting electronic files is another major misstep. Doing so may not only fail to protect you—it could lead to obstruction of justice charges. Even routine deletion of emails or shredding of paper records, if done after learning of an investigation, can be seen as an effort to conceal evidence. All data and documents should be preserved, and any necessary internal review should be conducted under the protection of attorney-client privilege.
Attempting to contact potential witnesses or co-defendants is also risky. Even if the intention is innocent, reaching out to others involved in the matter can appear as an effort to influence testimony or coordinate stories. Such behavior often draws further scrutiny from prosecutors. Let your legal team manage all communications related to your case.
Lastly, underestimating the seriousness of a federal or state fraud investigation can be a costly error. Being investigated for fraud does not mean guilt, but it does require caution. These matters move quickly, and early decisions can shape the outcome. High-profile or wealthy individuals are not immune to prosecution—in fact, such cases often attract additional media or political attention. Taking swift, discreet and informed action is generally necessary as a result.
