Is it tempting to destroy your accounting records and supporting documents when you are being investigated for securities fraud? You bet. Physical evidence such as accounting records is probably one of the most crucial evidence available to legal enforcement in white-collar crime cases. It is also, the first thing the investigator will seek out in a securities fraud investigation.
But, this does not mean you should hit the delete button as soon as a Securities Exchange Commission (SEC) investigator contacted you. The process is far more complicated than that, and by attempting to destroy your relevant documents, you risk the additional charge of obstruction of justice, which has a maximum of ten years of incarceration.
In addition, the destruction of documents can make it substantially more difficult to defend you in a criminal investigation and a civil litigation suit.
Federal prosecutors, who are later referred to this matter, are allowed to make estimates on how much money is defrauded based on the evidence available. Most often at times, because the supporting documents are not available, the estimate can be considerably more than what is actually defrauded.
The Rule of Thumb:
Do not voluntarily give up information without a warrant, and without first seeking advice from a Federal Criminal Defense attorney.
If you have been presented with a search warrant by a SEC investigator regarding your accounting records, then call our New York City Securities Fraud Criminal Defense Lawyers at 212-227-0860 for professional legal advice.
