When your business is under the microscope for fraud, the investigation rarely begins with a loud knock on the door. Instead, it starts quietly—through phone calls, document requests, or sudden changes in vendor or customer behavior. By the time law enforcement or prosecutors make direct contact, investigators may already have built a foundation for criminal allegations.
As former Orange County District Attorneys, Simmons & Wagner know how fraud investigations unfold behind the scenes. Here’s what to look for if you suspect your business is being targeted, and why taking early action is essential.
What to Look Out For:
1. Unusual Requests for Financial Records or Emails
If you’re suddenly asked by a bank, accountant, auditor, or even a vendor to provide large volumes of records—especially with no clear reason—that could be a sign of a government inquiry. Often, investigators informally gather evidence through third parties before you’re even aware of an investigation. Requests may include:
- Past invoices or contracts
- Email threads between executives or clients
- Transaction logs or expense breakdowns
Red flag: If your CPA or financial institution mentions they’ve been contacted by a government agency, take it seriously.
2. Customers or Vendors Are Suddenly Uncooperative or Silent
Investigators often interview witnesses early in a business fraud probe. If a customer, former partner, or supplier who previously had no issues suddenly stops returning calls—or becomes guarded in conversation—it may indicate they’ve spoken to authorities or been subpoenaed.
Red flag: Long-standing relationships going quiet, especially after a disagreement or financial dispute.
3. A Subpoena or Civil Investigative Demand Shows Up
Receiving a subpoena is one of the most direct signs your business is under scrutiny. These legal documents may ask for specific records, financial statements, or communications. While civil investigative demands (CIDs) are not criminal, they can be precursors to criminal charges—especially if issued by the Attorney General’s office, the IRS, or federal agencies like the DOJ.
Red flag: Subpoenas that demand information from executives or specify fraud-related documents.
4. A Former Employee Has Filed a Complaint or Whistleblower Action
Disgruntled former employees are common sources of fraud allegations. If someone has accused you of improper billing, embezzlement, investor misrepresentation, or misreporting, that complaint could trigger a broader investigation—even if the claims are exaggerated or false.
Red flag: HR or legal is notified of a formal complaint, especially under California’s Whistleblower Protection Act or federal programs like qui tam under the False Claims Act.
5. You Receive a Visit or Call from a “Friendly” Investigator
Whether it’s a state agency, the IRS, or a federal agent, they may first approach you or your employees under the guise of a casual conversation. They’ll say you’re not the target—just helping with an inquiry. But make no mistake: any statement you make can and will be used against you.
Red flag: A knock on your door from someone identifying as a “special agent” or “compliance officer,” especially without prior notice.
What to Do If You Spot These Signs
If any of the above is happening to you, don’t wait. Here’s what you should do immediately:
- Contact a Business Fraud Attorney in Orange County with experience on both sides of the courtroom.
- Do not speak to investigators without legal counsel present.
- Preserve all relevant documents (emails, texts, financial records), but do not alter or delete anything.
- Notify key personnel, including in-house counsel or compliance officers, while keeping information tightly controlled.
Why Choose Simmons & Wagner
As former Orange County District Attorneys, Simmons & Wagner bring insider knowledge of how investigations are built—and how to dismantle them before charges are filed. Their experience allows them to:
- Anticipate prosecutorial strategy
- Protect your rights early
- Navigate parallel civil and criminal exposure
- Develop pre-charge strategies to avoid indictments
Early intervention can make the difference between protecting your reputation and facing public criminal allegations.
Contact Simmons & Wagner Today
If you suspect your business is being investigated for fraud, don’t wait until it’s too late. Contact Simmons & Wagner now to schedule a confidential consultation with a seasoned business fraud attorney in Orange County who knows how to protect your future.