An investigation is a serious matter, even when it begins in HR or internal affairs. However, once federal or state agents become involved, an investigation can escalate into criminal charges. You may need a white-collar defense attorney. Contact Joseph, Hollander & Craft. Our firm can provide confidential and experienced legal assistance for your white collar case in Kansas.
Administrative Inquiry or Criminal Case?
White-collar investigations can start with simple administrative inquiries. The IRS, SEC, FTC, Department of Labor and Kansas regulators often begin the process with a civil investigation. A person or corporate entity might be investigated and sued for something like fraud, breach of fiduciary duty, or misrepresentation. These civil cases result in monetary damages or injunctions, not jail time.
However, federal administrative matters can very quickly transfer into criminal referrals. A regulatory enforcement action is designed to enforce compliance with industry rules and regulations. The goal is often to correct behavior, impose fines, or revoke licenses. However, these regulatory agencies can also refer cases for criminal prosecution if they believe the behavior crosses the line from civil misconduct to criminal action. Elements like knowingly committing fraud or conspiring to mislead can swiftly lead to a case being tried in criminal court and carrying the risk of prison time, probation, forfeiture, and restitution.
Perhaps the most important thing to understand is that many instances of fraud tend to involve a complex combination of liability. This can easily result in all three kinds of litigation at once: regulatory, civil, and criminal. For instance, submitting a false claim to Medicare could lead to a regulatory investigation by HHS, a civil suit under the False Claims Act, and a criminal indictment for healthcare fraud. Parallel civil and criminal proceedings are extremely common. Before you know it, one investigation has contributed to another, and you may be facing more serious consequences than you ever imagined.
Warning Signs You’re Under Criminal Investigation
The following are some warning signs that you may be targeted for criminal investigation of a white collar crime:
- Receiving a letter from the US Attorney’s Office
- Calls or communications from federal agents
- Visits from federal or state investigators, even before they have a search warrant
- Receiving a grand jury subpoena
- Changes in your access or security clearance at work
- Interviews of friends, family, or business associates
- Seizure of your property or assets
- Allegations of schemes or conspiracy circulating in the media or social groups
What Can Trigger an Escalation to Criminal Charges?
Not every regulatory investigation will involve criminal charges, but when in doubt, consult with a white-collar criminal defense lawyer to build your defense. An honest mistake or regulatory lapse may be put behind you with a simple civil fine, but allegations of intent to defraud or purposeful misconduct are another matter. Other elements of your case that can escalate the charges you may face can include:
- Evidence of document destruction or false statements
- Whistleblower complaints or cooperating witnesses
- Large dollar amounts involved
- Multiple victims coming forward or significant public impact
- Parallel investigations from state and federal agencies
Federal vs. State Prosecution in Kansas
The Kansas Bureau of Investigation (KBI) investigates various criminal activities, including computer crimes, crimes against persons, property crimes, economic and financial crimes, and public corruption. Additionally, the Kansas Attorney General’s Office investigates scams, mediates disputes, and enforces consumer protection laws. They handle issues like deceptive trade practices, the No-Call Act, the Roofing Registration Act, and identity theft under the Wayne Owen Act. Additional Kansas investigative authorities include:
- Kansas Public Disclosure Commission (KPDC)
- Kansas Corporation Commission (KCC)
- Kansas Department of Insurance
- Kansas Office of the State Bank Commissioner
- Kansas Department of Labor
- Kansas Real Estate Commission
- Kansas Human Rights Commission
- Kansas Securities Commission
Financial fraud charges can involve both federal and state liability. For instance, while the SEC may investigate fraud, the Kansas Securities Commission may investigate bribery within the same overall instance of wrongdoing. If you are being contacted by federal agents, ask for names, badge numbers, and their agency. Bring this information to your attorney.
What to Do If You Have Been Contacted by State or Federal Investigators
If you have received a target letter from the U.S. Attorney’s Office, call a criminal defense attorney at once. Legal counsel for white-collar cases must start immediately building up your defense, ideally while you are under federal investigation but not charged yet. If you have been contacted by federal agents or state investigators:
- Do not volunteer information without first speaking to a lawyer. Remain polite and respectful, but you do not have to answer any questions you are asked without an attorney present. Anything you say can and will be used against you in the investigation. Tell agents that you would like to contact a lawyer, and nothing else.
- Do not contact your associates. Communications may be being monitored, and reaching out can implicate you further.
- Do not post online about the situation. Anything you say – even in “private” chats – can and almost certainly will be used against you.
You do not have to let agents into your home without a warrant. If they insist on entering, say that you do not consent to this search out loud. Similarly, federal and state agents must have a warrant to search your electronic devices in most cases.
How Joseph Hollander & Craft Can Help
In a white collar crime case, the work begins well before you ever go to court. Securing counsel as soon as possible can greatly impact the ultimate outcome. A good Kansas white-collar crime attorney may be able to intervene before you are indicted, and build a strategy that can prevent or sidestep an escalation to criminal charges. At Joseph, Hollander & Craft we can work by your side from the first moment you suspect trouble to communicate with investigators, protect your privacy and interests, and attempt to eliminate or reduce the charges against you. When that is not possible, our firm can assemble the strongest possible defense for your trial.
Contact Joseph Hollander & Craft for Help
Joseph, Hollander & Craft maintains offices in five cities including Kansas City, MO, Wichita, Topeka, Lawrence, and Overland Park. If you need help from a Kansas white-collar crime attorney, the biggest mistake you can make is waiting. Contact us today and see how Joseph, Hollander & Craft can work to protect you from the outset.
