NATIONALLY RECOGNIZED FEDERAL LAWYERS
Strategies for Responding to Target Letters in Complex Financial Crime Cases
|Last Updated on: 2nd October 2023, 05:51 pm
Strategies for Responding to Target Letters in Complex Financial Crime Cases
Receiving a target letter from the government can be an intimidating and stressful experience. These letters indicate that you are under investigation for potential criminal violations. In complex financial crime cases involving allegations like securities fraud, accounting fraud, insider trading, or money laundering, the stakes are especially high. Penalties can involve massive fines, restitution, forfeitures, bans from working in your industry, or even criminal prosecution. So it’s critical to respond carefully to avoid making costly mistakes when you’re already on the defensive.
The most important first step is: Do Not Panic. Take a deep breath. A target letter does not mean you’ve been charged with anything yet. It means prosecutors have focused attention on you, but they likely want more information before deciding how to proceed. While the letter may sound threatening, demanding interviews, documents or grand jury testimony, you have certain rights. A skilled white collar defense attorney can help craft an appropriate response to avoid inadvertently helping the government build a case against you.
Secure Legal Counsel Immediately
Your best defense is having an experienced federal criminal defense lawyer in your corner from the very start. Do not say anything to investigators without counsel present. Be polite, but decline interviews or requests for documents/testimony until your lawyer reviews the situation. Anything you say may be used against you, so you want counsel advising you before you speak or provide any potentially incriminating evidence. A knowledgeable attorney can interface with prosecutors on your behalf, try to get more details on the investigation, and work to avoid charges where possible through proactive advocacy and negotiation [1].
Understand the Allegations
Target letters usually provide some information about the nature of the investigation, but your attorney can try to get additional details from the prosecutor’s office about what transactions or conduct is really at issue. In complex cases involving years of business dealings, you may need help narrowing down the key areas of concern. This allows you to begin assessing possible explanations, defenses and mitigating factors. For example, an insider trading allegation may focus on certain stock sales before a merger. But there may be legitimate reasons those trades occurred when they did.
Preserve Evidence
Once aware of a pending investigation, take immediate steps to gather and preserve all potentially relevant records. This includes electronic data like emails, texts and digital files. You do not want any evidence to be inadvertently destroyed, which could later look suspicious. Your lawyer can provide specific guidance on proper preservation methods and help assemble records in an organized fashion.
Avoid Obstruction
Never destroy or delete any records after receiving a target letter. Under federal law, any steps taken to impede an investigation could constitute criminal obstruction of justice. Be cautious about discussing the case with others as well, as statements could be misconstrued. Your attorney can advise who it is safe to speak with. In general, be cooperative with lawful requests, but do not say anything that could unintentionally aid prosecutors.
Consider Proffer Sessions
In some cases, it may be in your best interest to participate in an informal “proffer session” where you answer investigators’ questions with your lawyer present. This allows you to get your side of the story on record early in the investigation. But there are risks, so proffers should only be done if counsel believes they could sway prosecutors not to bring charges. Never lie to federal agents – that itself is a crime. And statements made can be used against you later. So proffers require careful consideration.
Grand Jury Subpoenas
If you receive a subpoena to testify before a grand jury or produce records, consult your attorney immediately about responding. Unlike interviews with investigators, you cannot bring counsel into the grand jury room. However, an experienced lawyer can help prepare you to testify and advise on invoking your 5th Amendment right against self-incrimination where appropriate. You can also sometimes negotiate limits on testimony or production of privileged materials.
Potential Defenses
For specific charges, there may be defenses and exemptions your lawyer can raise. For example, some insider trading cases can be defended on the basis that the information traded on was not “material nonpublic information.” Other technical requirements for conviction may not be met. Statute of limitations rules could bar older charges. Your extensive history of community service or charity work could be cited as grounds for leniency. The options depend on the exact allegations, but a creative and zealous legal advocate explores every angle.
Negotiating a Resolution
In many cases, skillful lawyering can resolve matters short of an indictment through negotiating with prosecutors. Your counsel may be able to convince them weaknesses in evidence or mitigating circumstances do not justify criminal charges. At minimum, charges can potentially be reduced or narrowed. If charges are ultimately filed, your lawyer can negotiate a plea deal or sentencing recommendations. The prosecutor has options too – your attorney’s job is advising you on the best route forward.
Dealing with a target letter is daunting, but not hopeless. Experienced white collar defense counsel can guide you through the process, protect your rights, and work to achieve the best possible outcome under the circumstances. Don’t go it alone. The right lawyer makes all the difference.