Federal Financial Crimes Prevention

Violations that lead to financial crime investigations by federal agencies in Michigan include corporate fraud, falsification of financial information, self-dealing by corporate insiders, and fraud in connection with other legitimately operated mutual hedge funds. In addition, there is a possibility of inquiries by the Securities and Exchange Commission (SEC) that involve insider trading and false information on prospectus', and many other violations. The best way to avoid a financial crime investigation is to only operate in a legal manner, never committing a financial crime. By regularly working with dedicated legal counsel, businesspeople can protect themselves with best practices for Michigan federal financial crimes prevention.

The first thing to look at regarding illegal acts is the company's internal bookkeeping procedures and whether they are in compliance with normally acceptable accounting standards. Some latitude is given in accounting records, but banks have a set of specific obligations under abating tax and some of the Dodd-Frank requirements.

In the common field of business practices, a company may be engaged in questionable accounting procedures or non-standard accounting procedures that could lead an investor into looking at the financial stability of the company. There may be questions about whether the information provides an accurate picture of the financial status of a company, which can affect their ability to get loans and sell stock.

Short of absolute and overt fraud, these are areas where companies can get into trouble by not following the rules as rigorously as they might. Preventing a financial crime in Michigan starts with understanding what the legal obligations for a company are, and following them as closely as possible. By acting proactively to stop criminal actions with the help of a lawyer, it may be possible to avoid an investigation in the first place.

Most companies have their own internal accounting procedures, and there is no one set way to prevent financial crimes and prosecution.

A business owner could have outside auditors look at their books on a periodic basis to make sure they comply with standard accounting procedures and no one in the accounting division did something inappropriate. The larger the company, the more imperative it is to have an outside entity look at their work and review the files.

A company might even want to have periodic reviews done by a forensic accounting firm that is able to go further than what is on paper and ascertain whether there is something that could pose a problem for a regulatory agency. This way, an owner could identify potential problems, address them, and tell regulators that they have done their due diligence to prevent violations.

The most obvious sign that an individual or company is under investigation is contact initiated by federal law enforcement in the form of a subpoena or an agent actively asking questions. Someone might get a subpoena for documents, a request for records, or a letter from the SEC notifying them of an investigation. If someone has employees of a company telling them they were contacted by federal law enforcement such as the FBI or the IRS, that is another sign of an investigation. Occasionally, a person may get information from another business with which they are associated, telling them that an agent or an investigative agency was asking questions about that business's dealings with their company.

The first step a person or a company should take if they are at risk of a federal financial crime investigation is to secure the services of an attorney. The attorney could immediately contact the agency and inform them that all future communications are to be conducted with the attorney instead of the employee or the CEO of the company. The attorney must maintain knowledge and control of the scope of the investigation.

Another issue that sometimes arises is an employee who does not have legal representation. Depending on where they are in the hierarchy of the company, they may not even have the financial resources to secure an attorney for themselves. The attorney representing the CEO or the attorney representing the corporation may have problems representing each and every employee of the corporation because their interests may not be mutually coextensive.

To start protecting yourself and your company, get in touch with a dedicated financial criminal defense lawyer. In Michigan, federal financial crime prevention starts with every member of the company or corporation and the implementation of oversight procedures. Having a working relationship with an external financial auditor and a criminal defense attorney could be a good way of avoiding investigation and ensuring compliance. To get started, call an attorney today.