Civil Actions in a Federal Financial Crime Cases

Civil action with a financial crime case is when the prosecuting party files a lawsuit against the accused in hopes of recovering monetary compensation for assets lost as a result of the alleged fraud. These suits are generally filed by alleged victims, though in some cases, a governmental agency may file suit if the government was defrauded during the commission of the crime. An attorney could help defend you from civil action originating from either a private party or the government.

Civil actions in a Michigan federal financial crime case will accompany the criminal trial and may incur significant financial obligations in addition to any fines or penalties assessed during the criminal proceedings. If you are facing a civil suit for restitution as well as a criminal trial for a federal financial crime, it is essential that you retain a lawyer to defend your rights.

Because most banks and credit unions have their deposits and investments guaranteed by the Federal Deposit Insurance Corporation (FDIC) or a related agency, when someone causes a loss of any insured money due to fraud, the federal government is obliged to pay that amount. Therefore, a fraud indirectly costs the federal government money, so an investigating and prosecuting agency may seek civil damages to compensate the government for that expenditure.

Banks are required to be able to pay their depositors their money up to a certain point, so they may be ordered to place a hold on any money that might be fraudulently withdrawn as otherwise, the government might have to pay that sum to the bank.

Administrative actions differ from civil actions in that administrative actions require the involvement of a federal court while a civil action has no such requirement. Administrative actions afford a law enforcement agency the opportunity to use their own power to affect change in the way business is conducted. The SEC might order a company to stop selling stocks, and they do not need a court order to make this happen.

However, to reverse an administrative action taken by a regulatory agency, the defendant will need to go to court to have the action overturned. Overturning an administrative action requires a high burden of proof, and may be difficult. Agency action is generall quicker and does not require the level of judicial review that civil actions in a Michigan federal financial crime case.

Some administrative actions that an investigating agency can take against the person or entity operating in Michigan include putting a hold on bank accounts. They can go in and attempt to initiate civil forfeit to proceedings against businesses for the properties that they hold which may prevent those organizations from operating normally.

If the financial crime involves advertising, the Securities and Exchange Commission (SEC) or the Federal Communications Commission (FCC) may issues a cease and desist, preventing any continuation of the behavior. There is a variety of options the government might pursue in the civil context to curtail a company's ability to conduct business. This is often to ensure that assets are retained if there may be a need for forfeiture to pay reparations.

Facing federal criminal charges is a difficult thing to face, but the accompanying civil and administrative actions could have a massive effect on the way you conduct your business and your financial situation. Civil and administrative actions in Michigan federal financial crime cases could lead to the forfeiture of your assets, or orders to pay reparations. If you are facing federal financial crime charges and civil or administrative actions, as a result, call an experienced criminal defense lawyer today to protect your rights and future.