Most people accused of federal fraud have never been in trouble before. They have jobs, families, and often a professional license, and their first contact with the criminal justice system is a target letter, a visit from agents, or an arrest. In that moment, the instinct is to fix it: explain, repay, clean up. Those instincts are exactly what make federal fraud cases worse.
This is what to do, and what not to do, in the first days of a federal fraud investigation in the Eastern or Western District of Missouri.
How it starts
How do people find out they are under federal investigation for fraud?
Usually in one of two ways.
A target letter
A letter from the U.S. Attorney’s Office saying you are a target of a grand jury investigation. It is an opportunity: charges have not been filed yet, and there may still be time to affect what happens.
An arrest
Sometimes the first notice is an indictment and an arrest. Fraud cases often involve more than one person, and a case can already be pending against others before a new person is added to it.
The mistakes
What should I not do if I am under investigation for fraud?
We see the same five mistakes, and every one of them can create a new problem on top of the original one.
- Deleting or changing records. Destroying, altering, or hiding emails, texts, files, or documents to impede a federal investigation is its own federal crime under 18 U.S.C. § 1519, with a maximum of 20 years. Keep everything as it is.
- Giving agents “just a quick explanation.” A false or misleading statement to a federal agent can be charged separately under 18 U.S.C. § 1001, even if the underlying fraud case is weak. A true statement can still be used against you.
- Talking to your employer or HR. What you say in an internal investigation can be shared with the government and used against you.
- Calling the other people involved. Conversations with co-workers, partners, or alleged victims can be treated as witness tampering, and the person you call may already be cooperating.
- Paying the money back on your own. See below.
The safest answer
Should I talk to HR or the agents if I have nothing to hide?
No. Anything you say, whether to law enforcement or to HR, can be used against you. Remaining silent is the best option until you have a lawyer.
With agents
Be polite, take their card, and say you will have a lawyer contact them. You do not have to answer questions, and declining is not an admission.
With your employer
An internal investigation is not confidential just because it is internal. Before any interview, ask for the request in writing and talk to your own lawyer, not the company’s.
Restitution
Will paying the money back make the case go away?
No. Paying restitution does not get rid of the criminal case.
Fraud is a crime against the United States, not only a debt to the person who lost money. The government decides whether to prosecute, and repayment does not undo the alleged offense. If there is a conviction for a fraud offense with an identifiable victim, federal law makes restitution mandatory under 18 U.S.C. § 3663A.
Repayment can still matter later, but how and when to do it is a decision to make with your lawyer, as part of a plan, not on your own in the first week.
The window
Can anything be done before fraud charges are filed?
Yes, but only when the client’s interests and the government’s interests are aligned.
A target letter means the government is still deciding. In that window, a lawyer can communicate with the prosecutor on your behalf, learn what the government believes, and evaluate whether any early resolution is possible. Sometimes it is. Sometimes the right answer is to say nothing and prepare. What it never is, is a good time to handle it yourself.
If charges are filed, a lawyer can often arrange a voluntary appearance instead of an arrest. See federal detention hearings for how release decisions work.
What is at stake
What do people facing federal fraud charges worry about?
Prison, their license, their family, their reputation, and money. All of those are valid worries.
Most of our fraud clients have no prior criminal history and no experience with the system. The process itself, from the first appearance to the presentence report, is unfamiliar, and the stakes reach well beyond the sentence. If you hold a professional license, see how a criminal charge affects a professional license. Under the federal Sentencing Guidelines, the alleged loss amount is also one of the largest factors in a fraud sentence, which is one more reason the early facts matter.
Answers
Federal fraud questions we hear
I received a target letter for fraud. What should I do?
Do not contact the agents or prosecutor yourself, do not delete or change any records, and do not discuss the matter with your employer or anyone involved. Talk to a federal defense lawyer before the date in the letter.
Is deleting emails during a federal investigation a crime?
It can be. Under 18 U.S.C. § 1519, destroying, altering, or concealing records with intent to impede a federal investigation is a separate crime with a maximum of 20 years in prison.
If I pay the money back, will the fraud charges be dropped?
No. Paying restitution does not end the criminal case. The decision to prosecute belongs to the government, and federal law makes restitution mandatory after a conviction for most fraud offenses with an identifiable victim.
Can what I tell HR be used in a criminal case?
Yes. Statements in an internal investigation can be shared with the government and used against you. Talk to your own lawyer before any interview.
Can I explain my side to the federal agents?
It is rarely a good idea without a lawyer. A false or misleading statement can be charged under 18 U.S.C. § 1001, and even accurate statements can be used against you.
See our federal criminal defense page, or call 573-638-8529. Received a target letter or subpoena? See federal target letters and grand jury subpoenas. If charges are filed, see federal wire and mail fraud. False statements to agents are charged under 18 U.S.C. 1001.
Talk to us
Say nothing, change nothing, and call.
If you have received a target letter or been contacted by federal agents about a fraud investigation, the first conversation should be a confidential one with your own lawyer.
Attorney advertising. The choice of a lawyer is an important decision and should not be based solely upon advertisements. This article is general information about federal criminal law, not legal advice, and it does not create an attorney-client relationship. Every investigation depends on its own facts.
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