Philadelphia Federal Criminal Investigations: Grand Juries, FBI, DEA, IRS

| by Max Soni

Last Updated on: 16th December 2023, 11:31 am

Introduction to Federal Investigations in Philadelphia

Philadelphia has a significant federal law enforcement presence, with multiple agencies conducting criminal investigations in the city every year. Key agencies involved include the FBI, DEA, IRS Criminal Investigation, and federal prosecutors who utilize investigative grand juries.
This article provides an overview of federal criminal investigations in Philadelphia – how they work, key laws, defenses, outcomes, and more. We’ll cover the role of grand juries, FBI investigations, DEA drug probes, and IRS financial crime inquiries. My goal is to explain the federal criminal justice process in Philly in an easy-to-understand way.

Federal Grand Juries

Federal grand juries are an important investigative tool used by Assistant US Attorneys (federal prosecutors) in Philadelphia. They utilize the grand jury to gather evidence and determine if charges should be brought in complex cases.

How Federal Grand Juries Work

Federal grand juries have up to 23 members selected from regular citizen rolls. They hear testimony and review evidence in secret. The grand jury doesn’t determine guilt or innocence – just probable cause.
If the grand jury believes probable cause exists that a person committed a federal crime, they will return an indictment – formal charges allowing a case to move forward to trial. An indictment often motivates defendants to seek a plea bargain.
Key laws governing federal grand jury practice include the Federal Rules of Criminal Procedure Rule 6 and the Jury Selection and Service Act.

Secrecy of Federal Grand Juries

Federal grand jury proceedings are secret. Participants cannot discuss anything that happens with an unauthorized party. Only the prosecutor, grand jurors, interpreter, court reporter and witness being questioned are allowed to be present.
Secrecy makes witnesses more comfortable testifying and prevents possible defendants from being tipped off. Per Rule 6(e), anyone violating grand jury secrecy faces contempt of court charges.
However, critics argue excessive secrecy undermines public confidence in the process and accountability. Some advocate reforms like allowing defense witness testimony or public release of transcripts later on.

Challenging a Federal Grand Jury Subpoena

If you receive a federal grand jury subpoena, you must appear to testify or produce records requested. But there are sometimes grounds to challenge or limit the subpoena. An attorney can file a motion to quash or modify the subpoena if it requests privileged, unnecessary or unreasonable materials.

Grand Jury Outcomes

Federal grand juries in Philadelphia return hundreds of indictments each year. For example, the 2021 annual court report shows 513 new indictments initiated in the Eastern District of Pennsylvania (which includes Philadelphia).
If indicted, you then face federal criminal charges. Often defendants choose to plead guilty and negotiate more lenient sentencing. If no indictment is returned, the investigation typically ends without charges filed.

FBI Investigations in Philadelphia

The FBI’s Philadelphia Field Office is very active investigating federal crimes like public corruption, financial fraud, terrorism, organized crime, civil rights violations and more.

Types of FBI Investigations

FBI agents in Philadelphia spend significant time investigating:

• Public corruption – Investigating Philadelphia elected officials and government employees for bribery, extortion, embezzlement and more.
• Financial and corporate fraud – Probing large white collar crimes like securities fraud, Ponzi schemes, insider trading, money laundering, and other complex financial schemes.
• Violent crime – Addressing bank robberies, kidnappings, fugitives, crimes crossing state lines under FBI jurisdiction.
• Civil rights – Unlawful police misconduct and hate crimes.
• Organized crime and drugs – Italian mafia, trafficking rings and other criminal enterprises.
• Terrorism and counterintelligence – Preventing domestic and international terrorist plots.

The FBI uses various sophisticated investigative techniques like electronic surveillance (wiretaps), undercover operations, informants, sting operations, and global intelligence capabilities.

Key FBI Investigation Laws

FBI agents have broad authority to investigate federal crimes nationwide. Key laws empowering FBI investigations include:

• Attorney General Guidelines – Govern FBI law enforcement authority and use of sensitive techniques.
• Title III Wiretap Statute – Allows electronic surveillance of communications in serious federal cases.
• Federal Material Witness Statute – Permits detaining witnesses with material testimony who might flee.

Critics argue laws like the Patriot Act give intelligence agencies too much unchecked power to intrude into personal privacy. But the FBI says authorities help prevent terrorism and crimes in an increasingly digital world.

Possible Defenses in an FBI Investigation

If you learn you are under FBI investigation, potential legal defenses to explore with your attorney include:

• Lack of criminal intent – Argue you acted in good faith without intent to break the law.
• Entrapment – Claim overzealous law enforcement induced you to commit a crime you wouldn’t otherwise.
• Unlawful search violations – Seek to suppress evidence from an illegal search.
• Miranda violations – Suppress statements taken without Miranda warnings.

An experienced federal criminal defense lawyer can carefully analyze the case facts and applicable law to craft an effective defense.

Outcomes of FBI Investigations

Possible outcomes of FBI probes in Philadelphia include:

• Criminal prosecution – If evidence merits, the Justice Department charges crimes in federal court.
• Civil injunction or forfeitures – The FBI may seek a court order banning unlawful activity or seizing assets.
• Administrative disciplinary referrals – For government employees violating policies.
• Closing investigations without action – If allegations are unfounded.

Much depends on the strength of evidence and prosecutorial discretion. Defendants often seek plea bargains to avoid harsh mandatory minimum sentences.

DEA Drug Investigations

The DEA has a strong presence in Philadelphia probing illegal drug trafficking organizations. They target dealers and upper-level cartel members.

Focus of DEA Investigations

The DEA concentrates investigations on:

• Cocaine, heroin and opioid trafficking
• Marijuana distribution rings
• Prescription drug diversion schemes
• Money laundering operations
• Drug-related violence and firearms offenses

They work big complex conspiracy cases in cooperation with the FBI, IRS, Homeland Security Investigations, and local law enforcement drug task forces.

DEA Investigative Tools and Methods

To infiltrate trafficking groups, the DEA uses wiretaps, global intelligence sharing, informants, undercover agents, controlled buys, vehicle tracking, phone data analysis, and surveillance.
Key laws authorizing DEA powers include the Controlled Substances Act and Title III wiretap statute. Critics argue mandatory minimums and asset forfeiture give agents too much leverage.

Defending Against DEA Charges

If facing DEA charges, possible defenses include:

• Illegal search and seizure
• Entrapment by overzealous DEA operatives
• Lack of knowledge or intent
• Unreliable informants
• Miranda violations

Skilled federal defense attorneys can analyze DEA investigation flaws and negotiate better plea deals or trial verdicts. But lengthy mandatory minimum sentences incentivize cooperating.

Outcomes of DEA Probes

Over 2,000 drug arrests flow from DEA Philly investigations each year. Outcomes include:

• Criminal prosecution of trafficking, distribution, firearms charges
• Civil asset forfeiture litigation to seize cash, vehicles, property
• Pre-trial diversion programs or cooperation deals
• Possible agency referrals for license revocation

Many cases end in plea bargains with defendants cooperating against higher-ups to earn sentencing leniency. Intense enforcement aims to curb the opioid crisis claiming thousands of lives.

IRS Criminal Investigations in Philadelphia

IRS Criminal Investigation (IRS CI) probes complex financial crimes and money laundering in Philadelphia, coordinating with the FBI, DEA and U.S. Attorney’s Office.

Types of IRS Criminal Cases

IRS CI focuses on busting:

• Tax fraud schemes – Not reporting income, phony deductions, identity theft, offshore accounts, etc.
• Money laundering and unlicensed money remitting
• Terrorist financing and transnational financial crimes
• Cryptocurrency crimes
• Sophisticated cyber-enabled frauds

IRS CI brings financial expertise and data analysis tools to federal task forces targeting drug cartels, fraud rings, corruption, and terror groups.

Laws Governing IRS Criminal Authority

Key laws include:

• Internal Revenue Code Offenses – Tax, money laundering, and reporting violations
• Bank Secrecy Act – Reporting cash transactions and foreign accounts
• Money Laundering Statutes – Prohibit disguising dirty money

Critics argue vague rules and extreme punishments give IRS CI too much power without accountability. But agents say complex crimes demand updated laws.

Defending Against IRS Criminal Charges

If facing IRS CI charges, possible defenses include:

• Lack of knowledge or intent
• Good faith misunderstandings
• Unreliable informants
• Illegal IRS investigative tactics
• Miranda violations

Skilled tax crime attorneys can spot issues and negotiate better outcomes for defendants facing severe sentences.

Outcomes of IRS Criminal Investigations

IRS CI probes can lead to:

• Tax evasion, false return, and currency charges
• Forfeitures of cash, assets purchased with dirty money
• Revocation of professional licenses
• Jeopardizing immigration status
• Restitution to tax authorities

The government prioritizes cases with sizable tax losses, unreported foreign assets, and money laundering allegations. Many defendants end up pleading out.