A business fraud accusation can strike at the heart of everything you’ve built—your company, your career, and your reputation. But an allegation is not a conviction. In California, prosecutors must prove intent, deception, and financial harm beyond a reasonable doubt. For business owners, executives, and professionals, understanding the defense process can make all the difference between a costly legal battle and a restored reputation.
At Simmons & Wagner, our attorneys—former prosecutors with decades of combined experience—know how to challenge the government’s narrative and expose the weaknesses in their case.
1. What Happens When a Business Fraud Case Begins
The Subpoena or Notice
Fraud cases typically start with a subpoena, target letter, or agency notice. These documents may come from the California Department of Justice (DOJ), IRS, SEC, or local District Attorney’s Office. They indicate that investigators want to review financial records, emails, contracts, or internal communications.
If you receive one, do not contact investigators directly or attempt to destroy, alter, or “correct” documents—these actions can lead to obstruction charges. Instead, your attorney should immediately step in to manage all communication, preserve records properly, and assess the scope of the investigation.
The Investigation Stage
During this stage, prosecutors work with forensic accountants, auditors, and financial analysts to review thousands of pages of records. They may conduct witness interviews or issue grand jury subpoenas. Defense counsel’s goal here is early intervention—to present clarifying information that prevents formal charges or narrows the scope of the allegations.
Filing of Charges
If the government believes there’s probable cause, formal charges are filed. At this point, your defense attorney can challenge the case through motions to dismiss, evidence suppression, or negotiated resolutions such as pre-filing diversion or restitution agreements.
2. Proven Defense Strategies in Business Fraud Cases
Lack of Intent
Most fraud laws require proof of intent to defraud. Honest mistakes—like clerical errors, miscommunications, or reliance on incorrect data—do not meet this threshold. Demonstrating that you lacked criminal intent is often one of the most effective defenses.
Accounting or Clerical Errors
Complex financial systems frequently produce discrepancies without criminal conduct. Software glitches, mis-categorized transactions, or inconsistent bookkeeping practices can easily appear suspicious. Expert forensic accountants can trace these issues back to their source, showing that they were administrative, not intentional.
Reliance on Professionals
Many executives rely on accountants, consultants, or legal advisors to handle financial matters. If you acted based on professional advice, it may negate intent or show that any irregularities were caused by someone else’s misjudgment—not deceit on your part.
Insufficient or Circumstantial Evidence
Fraud cases often hinge on patterns, assumptions, or incomplete data. A skilled defense attorney can challenge the credibility of this evidence, question the methods used by investigators, and highlight gaps that create reasonable doubt.
Entrapment or Overreach
In some cases, investigators or cooperating witnesses may push defendants into actions they would not have otherwise taken. If law enforcement overstepped or used misleading tactics, entrapment may serve as a viable defense.
3. The Role of Expert Witnesses
Business fraud cases are evidence-heavy and highly technical. Expert witnesses can play a pivotal role by:
- Explaining accounting practices and standard business procedures to juries.
- Reconstructing financial transactions to reveal non-fraudulent explanations.
- Evaluating whether alleged losses were actual or theoretical.
- Highlighting procedural or mathematical errors in the prosecution’s analysis.
At Simmons & Wagner, we regularly collaborate with financial experts, CPAs, and former regulators to build a compelling and credible defense.
4. Protecting Your Reputation During Litigation
In white collar cases, public perception can be as damaging as the legal outcome. Media reports, investor reactions, and online speculation can erode trust long before the case concludes. Strategic legal counsel should help you manage communications carefully:
- Avoid public statements or social media comments about your case.
- Issue clear, factual internal communications to employees and stakeholders.
- Work with your attorney to control the narrative and protect your brand’s integrity.
A strong defense doesn’t just fight charges—it safeguards your business’s future in the public eye.
5. Why Early Action Changes Everything
The earlier you involve a defense attorney, the more options you have. Early legal intervention can:
- Prevent misunderstandings from becoming criminal charges.
- Influence how investigators interpret financial records.
- Negotiate with prosecutors for dismissal, restitution, or non-criminal resolutions.
- Minimize disruption to your business operations.
At Simmons & Wagner, we don’t wait for the case to reach court before defending you—we act from day one to protect your interests and reputation.
Facing Accusations Doesn’t Mean Guilt
Business fraud allegations can feel overwhelming, but you don’t have to face them alone. Simmons & Wagner’s team of former Orange County District Attorneys understands both sides of the courtroom and how to dismantle the government’s case piece by piece.
From pre-charge investigations to full trials, we stand beside our clients at every stage—defending their rights, their businesses, and their futures.
Contact Simmons & Wagner today to discuss your case confidentially and learn how proactive defense can make all the difference.