White collar crimes & the pre-indictment phase

White collar crimes - Before an individual can be forced to defend against federal criminal charges, a Grand Jury must return an indictment. A Grand Jury consists of no less than 16 nor more than 23 citizens from the federal district having jurisdiction over the case. Prosecutors present their case to a Grand Jury, and if 12 Grand Jurors find probable cause to believe that an offense has been committed, the Grand Jury returns an indictment.

The term "indictment" refers to the document that contains the charges against the individual or individuals in question. When the indictment is returned by the Grand Jury, it is usually immediately filed in the Clerk's Office of the District Court, and a warrant is typically issued for the arrest of the individual/individuals named in the indictment.

Lawyers specializing in white-collar criminal defense typically refer to the period where prosecutors are investigating and gathering evidence to present to the Grand Jury as the "target/pre-indictment phase."

In non-white collar crimes, the defendant typically does not become aware that an investigation into his or her activities is under way. In drug cases, for example, federal prosecutors and agents typically investigate for many months surreptitiously and do their very best to keep targets of the investigation unaware that any investigation is taking place. In such cases, defendants are typically arrested after the Grand Jury returns an indictment. Usually, the time of arrest is the first time these defendants find out that any investigation had been going on.

In white collar crimes, the situation is typically different. Most white-collar defendants find out prior to indictment that there is an investigation ongoing. There are a number of ways in which white-collar defendants can find out that an investigation is in process.

Federal prosecutors throughout the country send out what they call "target letters" in many cases. A target letter is simply a letter from the United States Attorney's office to an individual advising the individual that he or she is the target of a federal investigation. Usually the letter will advise the individual as to the nature of the federal charges being investigated, i.e., bank fraud, money laundering, etc.

Federal agents may arrive at your home or business and ask to speak to you directly. They may advise you that you are a target of a criminal investigation. On the other hand, they may advise you that you are not a target, but that they wish to speak to you.

You may hear that your friends, neighbors, employees, partners, etc., have been contacted by federal agents and that federal agents have advised them that they are investigating your activities. Should you hear that federal agents are investigating your activities, it is important to remember that the pre-indictment phase can be the most important part of the whole federal process.

If you suspect that you or your activities are under federal investigation, hire an experienced federal criminal defense attorney immediately. It is always easier for a lawyer to convince a prosecutor to decline to prosecute a case prior to indictment than it is to convince him or her to dismiss a case once it has been indicted. At the pre-indictment phase, before battle lines have been firmly drawn, there is a greater likelihood that your lawyer will be able to explain away misunderstandings and keep you from being indicted. If yours is the type of case that is best handled with a plea bargain, white collar crime attorneys are generally able to work out more favorable deals prior to indictment than after an indictment. Again, if you suspect that you are under investigation, hire competent counsel immediately.

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