When a Business Dispute Becomes a Criminal Allegation
Partnerships are built on trust, but when things go wrong—especially during breakups, financial downturns, or internal power struggles—business disputes can quickly turn into serious criminal allegations. It’s not uncommon for one partner to accuse another of fraud, embezzlement, or financial misconduct in an attempt to gain leverage or protect their own interests.
If your business partner has accused you of fraud, you are no longer in a typical contract dispute. You are at risk of criminal prosecution—and everything you say or do next could impact your freedom, your reputation, and your ability to continue doing business in the future.
At Simmons & Wagner, we’ve prosecuted and defended high-stakes fraud cases from both sides of the courtroom. As former Orange County District Attorneys, we know how quickly these accusations escalate—and how to shut them down before they turn into formal charges.
Here’s what you need to know, and what to do next.
First: Don’t Assume It’s Just a Civil Matter
Many professionals assume that accusations made by a partner—especially if they’re tied to money disputes, profit-sharing, or shareholder arguments—will be handled through arbitration or civil litigation. But if the allegations involve:
- Forged signatures
- Undisclosed withdrawals
- Falsified records or invoices
- Misuse of company funds or assets
- Breach of fiduciary duty involving deception
…you could be facing criminal business fraud charges under California or federal law.
Even if the initial dispute is civil, your partner could report you to law enforcement or regulatory agencies, triggering an investigation by:
- Local police or the Orange County District Attorney’s Office
- The FBI or U.S. Attorney’s Office (if federal interests are involved)
- The IRS or Department of Revenue
- Licensing boards or professional associations
What to Do Immediately if You’re Accused
1. Stop Communicating with Your Former Partner
Do not try to “talk things out” or clear up the misunderstanding yourself. Anything you say—text, email, phone call—can become evidence in a criminal investigation. You may be tempted to explain your actions, but even well-meaning statements can be twisted into evidence of intent or wrongdoing.
2. Do Not Speak to Law Enforcement Without an Attorney
If you’re contacted by investigators—especially under the guise of a “casual” conversation—do not speak to them without legal counsel present. These are strategic interviews designed to elicit statements that can later be used against you. Saying “I’m happy to cooperate, but I’d like my attorney present” is not an admission of guilt—it’s smart self-protection.
3. Hire a Business Fraud Attorney in Orange County Immediately
At Simmons & Wagner, we know how to intervene early, assess your exposure, and shield you from escalating allegations. We can:
- Communicate directly with your ex-partner’s legal team
- Head off potential law enforcement involvement
- Respond to subpoenas or civil discovery demands
- Monitor for signs of a criminal referral
- Build your defense before charges are ever filed
What a Fraud Accusation Might Include
Business partner fraud allegations often overlap with:
- Wire fraud or mail fraud (if funds were moved electronically)
- Embezzlement
- Forgery or identity theft
- Accounting fraud
- Conspiracy to defraud investors or clients
- Breach of fiduciary duty with criminal intent
Even if you didn’t profit personally—or made honest mistakes—prosecutors may still attempt to pursue charges based on perceived deception or abuse of trust.
How We Defend You
As former Orange County District Attorneys, we understand how prosecutors build business fraud cases—and we know how to dismantle them.
Our defense strategies may include:
- Challenging the credibility and motives of the accuser (often the former partner)
- Demonstrating a lack of criminal intent (mistakes ≠ fraud)
- Showing you relied on professional advisors or bookkeepers
- Highlighting inconsistencies, exaggerations, or omissions in the complaint
- Proving that the dispute belongs in civil court—not a criminal courtroom
We also examine every document, communication, and financial transaction to construct a clear, fact-based narrative that undermines the prosecution’s assumptions.
Bottom Line: Business Breakups Shouldn’t End in Prison
Not every partnership ends amicably. But that doesn’t mean you’re guilty of fraud. In our experience, these cases often begin with a business dispute—and end with one partner weaponizing the criminal justice system for leverage.
If you’re facing accusations from a former partner, don’t try to defend yourself alone.
Contact Simmons & Wagner today for a confidential consultation. As seasoned defense attorneys and former prosecutors, we’ll protect your name, your freedom, and your future.