Accounting fraud is one of the most aggressively prosecuted forms of white-collar crime in California. From falsified ledger entries and backdated invoices to overstated earnings and hidden liabilities, these allegations often lead to full-scale investigations by state or federal authorities. If you’re a business owner, CFO, bookkeeper, or controller who has been accused of “cooking the books,” the time to act is now—before the situation escalates.
At Simmons & Wagner, our experience as former Orange County District Attorneys gives us unique insight into how these cases are built—and more importantly, how they can be dismantled.
What Is Considered “Cooking the Books”?
“Cooking the books” is a colloquial term for manipulating financial records to misrepresent a company’s actual financial position. Prosecutors may charge individuals or organizations with crimes like:
- Securities fraud
- Wire or mail fraud
- Filing false tax returns
- Corporate embezzlement
- Forgery or falsification of corporate books
- Conspiracy to defraud investors or government agencies
These charges often stem from:
- Inflated revenues
- Underreported expenses
- Fake customers or sales
- Deferred or backdated liabilities
- Off-the-books bank accounts
Even if you didn’t personally make false entries, you may still be implicated—especially if you’re in a leadership or fiduciary role.
Early Warning Signs You’re Under Investigation
Being proactive is critical. Here are red flags that suggest you’re already on law enforcement’s radar:
- You receive a subpoena for company records
- An internal audit turns into outside counsel involvement
- A former employee becomes a whistleblower
- Federal agents or investigators request interviews with staff
- You’re notified of an impending grand jury proceeding
If any of these signs apply to you or your business, do not speak to investigators without legal counsel. Anything you say—no matter how innocent it seems—can and will be used against you.
Common Defense Strategies in Accounting Fraud Cases
At Simmons & Wagner, we develop a tailored defense strategy based on the specific facts of your case. Some approaches include:
1. Lack of Criminal Intent
Prosecutors must prove you acted with deliberate intent to defraud. If errors resulted from sloppy bookkeeping or software glitches, they may not meet the threshold for criminal charges.
2. Delegated Responsibility
In many businesses, accounting tasks are shared across teams. We’ll explore whether you reasonably relied on others—like junior accountants or external CPAs.
3. Data Misinterpretation
Financial records can be nuanced. Our team can bring in forensic accounting experts to show that prosecutors misunderstood or misclassified entries.
4. Entrapment or Government Overreach
If investigators used aggressive tactics or unlawfully obtained evidence, we may file motions to suppress critical information.
5. Compliance Measures
If your business took steps to improve or correct accounting practices—like launching internal controls, replacing auditors, or issuing financial restatements—those efforts can work in your favor during plea negotiations or trial.
The Role of Forensic Experts in Your Defense
Accounting fraud allegations often come down to technical and subjective interpretations of large financial datasets. That’s why we frequently partner with:
- Forensic accountants
- Tax law specialists
- Certified fraud examiners (CFEs)
- Digital forensic analysts
These experts help us challenge the prosecution’s narrative, break down complex financial trails, and demonstrate alternative explanations.
Why Simmons & Wagner Is Different
As Former Orange County District Attorneys, we know how white-collar crime units investigate, charge, and litigate these cases. We’ve worked on both sides of the courtroom, giving us the insight and leverage to:
- Intervene early before formal charges are filed
- Negotiate reduced charges or civil resolutions
- Defend you at trial with meticulous preparation
Our reputation for strategic and aggressive defense makes us a trusted ally for professionals, executives, and small business owners facing high-stakes accusations.
Facing Allegations? Time Is Not on Your Side.
If you’ve been accused of falsifying records or are under investigation for accounting fraud, don’t wait to get legal help. The sooner you bring in a knowledgeable defense team, the better your chances of protecting your career, reputation, and freedom.
Contact Simmons & Wagner today for a confidential consultation with proven defense attorneys who know how to win.