When you run a small business, you wear many hats—from operations and client relations to HR and payroll. In the daily hustle, mistakes can happen. But what if a simple bookkeeping error—or an employee’s bad decision—leads to allegations of fraud?
If you’re accused of falsifying invoices, misrepresenting payroll, or manipulating financial records, you could be facing serious criminal charges.
As former Orange County District Attorneys, the defense team at Simmons & Wagner knows how prosecutors build white-collar cases. More importantly, we know how to dismantle them. Here’s what you need to know if your small business is under fire.
Why Falsified Records Trigger Criminal Investigations
Falsifying invoices or payroll records might seem like a paperwork issue, but the law treats it much more seriously. What may begin as a civil audit or labor board inquiry can quickly escalate into a criminal fraud investigation—especially if government programs, taxes, or employee wages are involved.
Prosecutors will scrutinize your records for signs of intentional deceit, including:
- Invoices for services never performed or goods never delivered
- Duplicate or padded invoices to increase payouts
- Misclassification of employees to avoid taxes or benefits
- Underreported hours or ghost employees on payroll
- Backdating or altering timesheets to reduce overtime liability
If any of these red flags surface, you may find yourself accused of committing fraud under California Penal Code §§ 470–484 or even facing federal wire or tax fraud charges.
What Prosecutors Will Look For
As former prosecutors, we know exactly where investigators focus their efforts:
- Intent: Honest mistakes are not crimes. Prosecutors must prove you intended to deceive or profit unlawfully.
- Paper Trails: Emails, text messages, and accounting software logs can be used to show who created, modified, or approved records.
- Whistleblowers: Disgruntled former employees or co-owners may come forward with allegations that spur investigations.
- Patterns of Behavior: One error may be forgivable. Repeated irregularities raise suspicion of fraud.
These investigations are invasive. Law enforcement may serve subpoenas, seize records, and interview staff—all before you’ve even been formally charged.
How a Strong Defense Can Make a Difference
Your best defense begins with immediate legal representation—not later when charges have been filed.
At Simmons & Wagner, we:
- Conduct our own forensic review of your records to identify inconsistencies or valid explanations.
- Challenge improper audits or interviews that violate your rights.
- Negotiate proactively with prosecutors to prevent charges from being filed.
- Bring in expert witnesses such as forensic accountants who can clarify discrepancies and demonstrate lack of intent.
- Build context around operational pressures, staffing limitations, or vendor errors that may have caused the issues.
We don’t just defend—we expose flaws in the government’s theory, poke holes in their timeline, and highlight any lack of evidence of criminal intent.
A Criminal Conviction Can Destroy Your Business
Even if you avoid prison, a conviction for fraud can:
- Strip you of licenses and certifications
- Trigger IRS and EDD investigations
- Damage your reputation in your industry
- Lead to civil lawsuits and financial penalties
That’s why it’s crucial to act before your case reaches that point. In many cases, early intervention by a seasoned defense team can mean the difference between a dropped investigation and a public indictment.
Call Simmons & Wagner, Former Orange County Prosecutors Who Now Fight for You
Facing allegations of falsifying invoices or payroll at your business? Don’t face it alone. With decades of combined experience, including years inside the District Attorney’s office, we understand the tactics used against you—and we know how to fight back.
Contact Simmons & Wagner today for a confidential consultation. Let’s protect your future, your livelihood, and your name.