Federal Criminal Investigation and Federal Fraud FAQs

Federal criminal investigations often begin long before an arrest or indictment. A person may first learn about an investigation through an FBI interview request, federal subpoena, search warrant, target letter, administrative audit, civil investigative demand, or questions directed to employees and business associates.

What happens during this early stage can significantly affect whether charges are filed and what evidence the government may ultimately use. Statements, emails, text messages, financial records, and documents voluntarily provided to investigators can all become part of a federal criminal case.

Attorney Karren Kenney represents individuals, professionals, and business owners facing federal investigations and criminal charges. She has more than 30 years of legal experience, has handled more than 100 jury trials, and is a Certified Fraud Examiner. Kenney Legal Defense maintains offices in Orange County, San Diego, and Houston and represents clients in federal matters throughout California and across the United States where permitted.

The answers below provide general information. They are not a substitute for legal advice concerning a particular investigation.

Written and legally reviewed by Karren Kenney, Federal Criminal Defense Attorney and Certified Fraud Examiner | Last reviewed: July 18, 2026

What should I do if the FBI contacts me?

If the FBI contacts you, remain calm, be respectful, and obtain the agents’ names and contact information. You generally should not participate in a voluntary interview or provide records until you have consulted a federal criminal defense attorney.

Agents may say that they only want to clear up a misunderstanding, hear your side, or ask a few questions. That does not mean the conversation is harmless. The government may already possess documents, recordings, witness statements, or financial records and may be evaluating whether your answers agree with that evidence.

Do not lie, destroy evidence, encourage anyone else to provide a particular account, or attempt to conceal relevant information. A lawyer can contact the agents, determine which agency and prosecutor are involved, and seek information about your status before deciding how to respond.

Am I required to speak with federal agents?

A person ordinarily is not required to participate in a voluntary FBI or federal-agent interview. You may respectfully decline to answer questions and state that an attorney will contact the agents.

Different considerations apply if you receive a subpoena, are taken into custody, or are subject to a court order. A subpoena cannot simply be ignored, although an attorney may be able to negotiate its scope, request additional time, assert applicable privileges, or seek judicial relief.

Whether an interview is described as “voluntary” does not determine whether participating is in your best interests. The decision should be made after counsel evaluates your potential exposure and the purpose of the requested interview.

Can I be charged for making a false statement to the FBI?

Yes. Under 18 U.S.C. § 1001, knowingly and willfully making a materially false statement in a matter within the jurisdiction of the federal government can constitute a separate federal crime. The statute also addresses certain material concealments and the knowing use of false documents. Read 18 U.S.C. § 1001

A person does not avoid this danger merely because the interview is informal, voluntary, unrecorded, or conducted outside an FBI office. Problems can arise from guessing, minimizing conduct, adopting someone else’s explanation, denying facts agents believe they can prove, or providing incomplete answers that create a misleading impression.

The safest response is not to improvise. Consult counsel before answering substantive questions.

What is the difference between a witness, subject, and target?

These terms generally describe how federal prosecutors view a person’s relationship to an investigation:

• A witness may possess information relevant to the investigation.
• A subject may have engaged in conduct within the scope of the investigation.
• A target is generally a person prosecutors believe has substantial evidence linking them to a crime and whom prosecutors may view as a likely defendant.

These classifications can change. A person initially treated as a witness may become a subject or target based on documents, testimony, or statements made during an interview.

An attorney may contact the prosecutor or investigating agency to ask how the person is classified. The government may provide that information, but it is not always required to do so, and any response must be evaluated cautiously.

What is a federal target letter?

A target letter is a written notification that federal prosecutors consider the recipient a target of a grand jury investigation. It may identify the general subject of the investigation, advise the recipient of certain rights, and invite the person to contact the prosecutor or appear before the grand jury.

A target letter is not an indictment, but it is a serious warning that prosecutors may be considering criminal charges. The recipient should not contact the prosecutor personally, submit a written explanation, or attempt to persuade witnesses to change their accounts.

Counsel can contact the prosecutor, assess the potential charges, request discovery or information when appropriate, and determine whether a defense presentation, proffer, declination request, or other response should be considered.

What is a federal grand jury subpoena?

A federal grand jury subpoena may command a person to testify, produce documents, or both. Federal grand juries investigate suspected violations of federal law and determine whether probable cause exists to return an indictment.

The Department of Justice recognizes that a grand jury may subpoena a witness, subject, or target. DOJ grand-jury guidance

A subpoena should be reviewed immediately. Counsel may evaluate:

• Whether the subpoena was properly issued and served;
• Whether its demands are clear and sufficiently specific;
• Whether compliance by the stated deadline is possible;
• Whether the request implicates attorney-client, work-product, Fifth Amendment, or other protections;
• Whether responsive records exist in multiple locations;
• Whether custodians or certifications are requested; and
• Whether the scope can be negotiated or challenged.

The subpoena must not be ignored, but immediate unreviewed production can create unnecessary risk.

Can my attorney accompany me inside the grand jury room?

A witness generally cannot have an attorney physically present inside the federal grand jury room. However, counsel may remain outside, and the witness may ordinarily ask to leave the room to consult counsel before answering a question.

This limitation makes preparation especially important. Before appearing, a witness should understand the process, the subject matter likely to be examined, potential privilege issues, and areas that could create self-incrimination or false-statement exposure.

What should I do when federal agents execute a search warrant?

Do not physically interfere with the search, destroy evidence, hide property, or argue with agents. Ask to see the warrant and request a copy of the federal search warrant, attachments, and property receipt.

You should also:

• Contact a federal criminal defense attorney immediately;
• Avoid answering investigative questions;
• Identify who was present and which agencies participated;
• Record the times agents arrived and departed when safely possible;
• Preserve surveillance footage and other records of the search;
• Avoid discussing the investigation with employees or witnesses; and
• Do not consent to a broader search than the warrant authorizes without legal advice.

Agents may attempt to interview people while other agents conduct the search. The existence of a warrant does not ordinarily require the occupants to answer investigative questions.

Does a search warrant mean I will be charged?

Not necessarily. A search warrant means a federal judge or magistrate judge found probable cause to believe that evidence of a crime would be located in the place or property described by the warrant. It does not establish guilt or guarantee that charges will be filed.

After a search, agents may spend months reviewing electronic devices, financial records, communications, and other evidence. Early counsel may investigate the allegations, preserve favorable evidence, address seized property, communicate with prosecutors, and begin preparing a defense before charging decisions are made.

Can an administrative audit become a federal criminal investigation?

Yes. Federal fraud matters frequently begin as administrative, regulatory, or payment reviews rather than announced criminal investigations.

A healthcare audit, SBA loan review, tax inquiry, Inspector General request, payment suspension, or civil investigative demand may uncover information that is referred to federal prosecutors or criminal investigators. Agencies may also coordinate with the FBI, IRS Criminal Investigation, HHS-OIG, Homeland Security Investigations, or another investigative body.

Warning signs of potential criminal exposure can include:

• Requests for interviews rather than routine records;
• Questions about intent, knowledge, or who prepared documents;
• Subpoenas seeking emails and text messages;
• Requests involving multiple affiliated businesses;
• Agents contacting employees or former business partners;
• Sudden interest from an Inspector General or criminal-investigation unit; or
• Questions concerning certifications, altered records, or the use of federal funds.

Counsel should assess criminal exposure before substantive explanations or document productions are provided in a federal fraud investigation.

What should I do with documents after learning about an investigation?

Preserve them. Do not delete, alter, backdate, conceal, fabricate, or destroy potentially relevant documents or electronic information.

Preservation may include:

• Emails and attachments;
• Text messages and encrypted communications;
• Cloud-storage files;
• Accounting records;
• Bank statements;
• Billing and payroll records;
• Tax documents;
• Contracts and applications;
• Security footage;
• Mobile phones and computers; and
• Records maintained by outside vendors.

Automatic deletion settings may need to be suspended. Counsel can help establish a defensible preservation process while separately evaluating which records must be produced.

Preservation and production are different questions. Preserving a document does not necessarily mean it should immediately be handed to the government without review.

Why can voluntarily producing documents be dangerous?

Documents may provide evidence concerning knowledge, intent, relationships, financial transactions, certifications, and communications. The manner in which records are selected and produced can also reveal information about their existence, location, possession, or authenticity.

Additional problems arise when someone:

• Produces incomplete records while certifying completeness;
• Creates documents after receiving the request;
• Alters or “cleans up” existing documents;
• Gives investigators an inaccurate explanation;
• Omits records without identifying an applicable objection;
• Produces privileged communications; or
• Allows an unqualified employee or vendor to decide what is responsive.

Counsel can oversee preservation, collection, privilege review, responsiveness review, and communications with the requesting agency.

What is federal fraud?

Federal fraud generally involves an alleged scheme to obtain money, property, services, or another legally recognized interest through materially deceptive conduct, together with the mental state required by the applicable statute.

Common federal fraud allegations include:

• Wire fraud;
• Mail fraud;
• Healthcare and Medicare fraud;
• Bank fraud;
• Money Laundering;
• PPP and SBA loan fraud;
• Tax fraud;
• Securities and investment fraud;
• Government-contract fraud;
• Mortgage fraud;
• Unemployment or benefits fraud; and
• False claims involving federal programs.

A poor business decision, regulatory violation, inaccurate record, or financial loss is not automatically criminal fraud. The government must prove the elements of the charged offense, including the required criminal intent, beyond a reasonable doubt.

How do federal prosecutors prove fraudulent intent?

Prosecutors rarely have direct evidence in which someone expressly admits an intent to defraud. They frequently attempt to prove intent circumstantially through:

• Emails and text messages;
• Repeated billing or application patterns;
• Altered or inconsistent documents;
• Financial transfers;
• Concealment;
• False explanations;
• Instructions given to employees;
• Personal use of business funds;
• Destruction of evidence; and
• Testimony from partners, employees, customers, or cooperating witnesses.

The defense should examine the same evidence for legitimate explanations, reliance on professionals, delegation of responsibilities, lack of knowledge, good-faith conduct, ambiguity, inaccurate witnesses, and failures in the government’s financial analysis.

Can I be charged for fraud committed by a business partner or employee?

Potentially, but association with a wrongdoer is not itself sufficient to prove criminal guilt. The government must establish the defendant’s own criminal responsibility under the charged statute or a recognized theory such as conspiracy, aiding and abetting, or willful participation in a fraudulent scheme.

These cases frequently turn on what the person actually knew, when they learned it, what authority they possessed, and whether they intentionally joined or assisted the alleged misconduct.

Important evidence may include division of duties, access to records, communications, professional advice, ownership interests, billing arrangements, and evidence that another participant concealed misconduct.

What is a federal fraud conspiracy?

A federal conspiracy generally involves an agreement between two or more people to commit a federal crime, combined with the additional requirements of the particular conspiracy statute. In many prosecutions, the government relies on circumstantial evidence to argue that an agreement existed.

A person does not necessarily need to know every participant or every detail of a larger alleged scheme. However, mere presence, association, employment, or knowledge that something improper may be occurring does not automatically establish knowing participation in a criminal agreement.

Can an attorney help before federal charges are filed?

Yes. Preindictment representation can be one of the most consequential stages of a federal case.

Depending on the circumstances, counsel may:

• Communicate with agents and prosecutors;
• Determine whether the client is considered a witness, subject, or target;
• Prevent an unprotected voluntary interview;
• Respond to subpoenas and document requests;
• Preserve favorable evidence;
• Conduct an independent investigation;
• Identify legal or factual weaknesses;
• Present exculpatory information;
• Seek the return of seized property;
• Negotiate the scope and timing of compliance; and
• Ask prosecutors to decline charges or consider a narrower resolution.

No attorney can guarantee that an investigation will end without charges. Early representation nevertheless creates opportunities that may disappear after an indictment.

How long does a federal investigation take?

There is no standard duration. Some investigations are completed in weeks or months, while complex fraud, conspiracy, healthcare, tax, or financial investigations can continue for years.

The timing can depend on:

• The number of subjects and witnesses;
• The amount of electronic and financial evidence;
• Grand jury activity;
• Cooperation agreements;
• Forensic accounting;
• International evidence;
• Agency referrals; and
• Applicable statutes of limitation.

A long period without contact does not necessarily mean the investigation has ended.

Which agencies investigate federal fraud?

Depending on the allegations, an investigation may involve:

• Federal Bureau of Investigation;
• IRS Criminal Investigation;
• Department of Health and Human Services Office of Inspector General;
• Department of Homeland Security or HSI;
• Small Business Administration Office of Inspector General;
• Department of Labor Office of Inspector General;
• Securities and Exchange Commission;
• Federal Deposit Insurance Corporation Office of Inspector General;
• United States Postal Inspection Service; or
• Other federal and state agencies.

The FBI also participates in joint investigations and task forces with other law-enforcement agencies. FBI description of its investigative role

When should I contact a federal criminal defense attorney?

Contact counsel as soon as you learn that federal agents, prosecutors, regulators, or an Inspector General are asking about you, your business, or your records.

Do not wait for an indictment if you have received:

• An FBI interview request;
• A federal target letter;
• A grand jury subpoena;
• An administrative subpoena;
• A civil investigative demand;
• A federal search warrant;
• A request to surrender electronic devices;
• Notice of an agency audit involving potentially inaccurate records;
• Information that employees or associates are being interviewed; or
• A request to sign a certification concerning document production.

Early legal advice may prevent avoidable statements, preserve defenses, and provide counsel time to understand the allegations before the government makes charging decisions.

Speak With a Federal Criminal Investigation Attorney

A federal investigation can threaten your freedom, professional license, business, assets, immigration status, and reputation before any charge appears on a public docket.

Attorney Karren Kenney is a federal criminal defense attorney and Certified Fraud Examiner with more than 30 years of legal experience and more than 100 jury trials. Kenney Legal Defense represents individuals, professionals, executives, healthcare providers, and business owners facing serious federal investigations and fraud allegations.

For a confidential consultation, contact Kenney Legal Defense at 855-505-5588.

This page provides general legal information and does not create an attorney-client relationship. Every federal investigation is fact-specific. Consult qualified counsel regarding your particular circumstances