Yes. While fraud allegations are serious, charges are not set in stone. Whether they can be reduced or dismissed depends on the strength of the government’s case, the quality of your defense, and how early you engage experienced counsel. Prosecutors must prove intent to defraud beyond a reasonable doubt—a high burden that leaves room for strategic defenses.
1) Grounds for dismissal
Fraud charges may be dismissed entirely if:
- Insufficient evidence. If prosecutors cannot establish the required elements (e.g., intent, false representation, or financial harm), the case may collapse.
- Procedural violations. Evidence obtained through illegal searches, flawed subpoenas, or violations of constitutional rights can be suppressed, weakening the case.
- Civil vs. criminal conduct. Many disputes labeled as “fraud” are better handled in civil court (e.g., contract disputes, billing disagreements). Demonstrating this can lead to dismissal of criminal counts.
- Grand jury or indictment issues. Procedural errors in how charges were brought can justify dismissal.
2) Possibilities for reduction
Even if dismissal isn’t achievable, charges can often be reduced through negotiation or by undermining key parts of the prosecution’s theory:
- Plea to lesser charges. Prosecutors may agree to drop felony counts in exchange for guilty pleas to misdemeanors or regulatory violations.
- Restitution agreements. Showing a willingness to repay alleged losses can sometimes shift a case from criminal prosecution to civil resolution.
- Demonstrating lack of intent. If evidence shows mismanagement, error, or negligence rather than fraud, charges can be scaled back.
- Cooperation in parallel investigations. In complex fraud schemes, limited cooperation with investigators may lead to reduced exposure.
3) Defense strategies that make this possible
Experienced defense lawyers use several approaches to challenge fraud allegations:
- Forensic analysis of records. Independent accountants may demonstrate that transactions were legitimate or mischaracterized.
- Rebutting witness testimony. Many fraud cases rely heavily on cooperating witnesses whose credibility can be challenged.
- Compliance evidence. Strong internal policies, audits, and corrective measures can show your business acted in good faith.
- Negotiated resolutions. Early dialogue with prosecutors can frame your case as a compliance issue rather than a criminal matter.
Business fraud charges are not automatically a conviction. With the right defense strategy, cases can be dismissed outright or substantially reduced—minimizing penalties, preserving professional licenses, and protecting your company’s reputation.
At Simmons & Wagner, our background as former Orange County District Attorneys gives us insight into how prosecutors build (and overreach on) fraud cases. We use that knowledge to find weaknesses, challenge assumptions, and push for dismissals or reduced charges whenever possible.