Federal Charges Don’t Start with an Arrest: How Investigations Quietly Begin in Shreveport

If you recently found out that you are the target of a federal investigation, there is a strong chance that the investigation is already well underway. Federal agents and prosecutors may have been gathering evidence for weeks—if not months—before deciding to contact you. As a result, you need to engage an experienced Shreveport federal criminal defense lawyer promptly, and you will want to work with your defense lawyer to target a resolution that avoids a federal indictment if at all possible.

Federal Investigations Frequently Begin Behind the Scenes

Federal investigations frequently begin behind the scenes. The U.S. Department of Justice (DOJ) and other federal law enforcement agencies routinely leverage their substantial resources, access to government data, and investigative authority to gather evidence in support of criminal charges before notifying individuals and businesses that they are being targeted. This is common in all types of federal cases, including (but not limited to) those involving offenses such as:

• Bank and mortgage fraud
• Fraud under government contracts and programs (i.e., defense contract fraud and Paycheck Protection Program (PPP) fraud)
• Healthcare fraud (i.e., Medicare and Medicaid fraud)
• Securities and commodities fraud
• Tax evasion and tax fraud

In these and other cases, targeted individuals and businesses often won’t learn they are under scrutiny until the DOJ is preparing to seek a grand jury indictment. Sometimes, the DOJ will issue a target letter before empaneling a grand jury. Other times, the first indication of a federal investigation will come when the target receives a federal grand jury subpoena.

How can the federal government build a case while keeping its investigation under wraps? Some of the most common ways the DOJ and other federal law enforcement agencies gather evidence at this stage of the process include:

Examining Government Data

Government data is an invaluable source of evidence for the DOJ and other federal law enforcement agencies. For example, in healthcare fraud cases, federal prosecutors can often use providers’ Medicare and Medicaid billing records to prove that they violated the law. Even if a provider’s billings do not serve as conclusive proof on their own, an analysis of a provider’s billing data may raise red flags that indicate further scrutiny is warranted.

Federal prosecutors can use billing data in the early stages of criminal investigations targeting fraud under government contracts and programs as well. For example, if a contractor’s billing records are anomalous when compared to other contractors’ invoices, this could trigger further scrutiny into possible theft of government funds. Government data has been a key source of evidence in the federal government’s ongoing efforts to prosecute PPP fraud.  

Comparing Government Filings with Publicly Available Information

Federal prosecutors can also build cases by comparing filings with publicly available information. This is a common strategy, for example, in cases involving allegations of securities fraud and tax fraud. If an issuer’s or taxpayer’s statements online or in the media are inconsistent with what it has reported in its SEC filings or federal tax returns, this contrast could trigger an investigation that ultimately leads to serious federal charges.

Working with Whistleblowers

Whistleblowers are also a key source of information for federal law enforcement authorities. The DOJ, SEC, and various other federal agencies have whistleblower programs—and these programs often compensate whistleblowers handsomely. Whistleblowers can also receive monetary rewards for exposing fraud under the False Claims Act. When working with whistleblowers, federal agencies can often gather substantial evidence before revealing that an investigation is underway.

Working with Government Witnesses and Informants

Along with whistleblowers, the DOJ and other federal law enforcement authorities also regularly work with government witnesses and informants behind the scenes. In many cases, these will be individuals who have agreed to cooperate with the government’s investigation to avoid criminal prosecution. But, even if a government witness’s or informant’s motives may be suspect, prosecutors may still be able to use evidence the witness or informant provides in order to further their efforts to seek an indictment.

Working with Financial Institutions and Other Entities

The DOJ can also obtain evidence from financial institutions and other entities through its subpoena power and other means. This is a common tactic in cases involving many types of white-collar crimes—including bank fraud, cryptocurrency fraud, and tax fraud, among others. By gathering evidence from third parties, federal prosecutors not only can build their cases against potential targets but also can prepare to expose targets’ false and misleading statements (which themselves can lead to federal charges under 18 U.S.C. Section 1001).

Leveling the Playing Field Once You Find Out You Are a Federal Target

With all of this in mind, once you find out that you are the target of a federal investigation, what can (and should) you do to level the playing field?

As the target of a federal investigation, it is important to get up to speed on it as quickly as possible. Among other things, this means seeking to understand:

• Which federal agency(ies) are involved?
• What triggered the government’s investigation?
• Where is the government getting its information?
• What other information is the government still seeking to obtain?
• How close is the DOJ to establishing probable cause for an indictment?

Of course, this is all easier said than done. Federal agents and prosecutors will use their superior access to information to their advantage, and, as a target, understanding your federal case can be extremely challenging. Once you find out that you are a target, to give yourself the best possible chance of avoiding unnecessary consequences, you need to speak with an experienced federal criminal defense lawyer right away.

Are You Under Investigation in Louisiana? Speak with an Experienced Shreveport Federal Criminal Defense Lawyer in Confidence

Shreveport federal criminal defense lawyer Lee Harville relies on decades of experience to defend clients in high-stakes federal cases statewide. If you are under investigation, call 318-222-1700 or contact us online to discuss your case with Lee in confidence as soon as possible.