White-collar criminal investigations rarely begin with an arrest. More often, they start with an unexpected phone call from an investigator, a subpoena asking for documents, or a request to “answer a few questions.” By the time many people realize they are under scrutiny, they have already made decisions that complicate their situation. Whether the investigation involves the Department of Justice, the Securities and Exchange Commission, the IRS, or the New York State Attorney General’s Office, the earliest stages of an investigation can have a lasting impact on the outcome.

Mistake No. 1: Assuming You Are Just a Witness

Investigators do not always tell people upfront that they are targets of an investigation. Often, someone is initially approached as a witness or asked to cooperate informally. People in this position often speak freely, believing they have nothing to hide or that full cooperation will work in their favor. That assumption can be costly; statements made during voluntary interviews can later be used against you, and the line between witness and target can shift quickly as an investigation develops.

Mistake No. 2: Talking to Investigators Without a Lawyer

What many people do not realize is that investigators are trained to gather information. Even a casual conversation can produce statements that are later taken out of context or used to build a case. You are generally not required to answer questions from federal or state investigators, and consulting a lawyer before deciding whether to speak is always wise. This right extends to state investigations as well, including those conducted by the New York Attorney General under Executive Law § 63(12), which grants the Attorney General broad authority to investigate repeated fraudulent or illegal acts.

Speaking without consulting an attorney, even when you believe you are simply clarifying facts, can provide investigators with exactly what they need to move forward against you. An experienced criminal defense attorney can help you understand what you are and are not obligated to say. They can also communicate with investigators on your behalf and make sure your words are not used against you in ways you never intended.

Mistake No. 3: Destroying or Altering Documents

Under 18 U.S.C. § 1519, it is a federal crime to knowingly alter, destroy, conceal, mutilate, falsify, or make false entries in records or documents with the intent to obstruct or impede any matter within the jurisdiction of a federal agency or department, including bankruptcy proceedings. The statute applies even before a formal investigation is opened, and a conviction can carry a prison sentence of up to 20 years.

New York Penal Law § 215.40 similarly makes it a class E felony to suppress physical evidence, including by concealing, altering, or destroying it, when a person believes it may be used in an official proceeding and acts with the intent to prevent that from happening. Even deleting emails, text messages, or electronic files that seem routine can create serious legal exposure if investigators later determine those records were relevant.

Mistake No. 4: Discussing the Investigation with Colleagues

When people learn they are under investigation, the instinct is often to talk it through with coworkers, supervisors, or business partners. Doing so can backfire in several ways. Those individuals may themselves be witnesses or targets, and conversations with them are generally not protected by attorney-client privilege. Investigators may interview colleagues, supervisors, or business associates; differences between their accounts can become part of the investigation, even when they result from innocent mistakes or faulty memory.

Mistake No. 5: Underestimating the Scope of a Grand Jury Subpoena

In federal white-collar investigations, grand jury subpoenas are a common tool used to compel testimony or the production of documents. Under Federal Rule of Criminal Procedure 6, grand jury proceedings are conducted in secret, which means you may not know the full scope of what investigators are looking for.

Receiving a grand jury subpoena is not an accusation of wrongdoing, but it is a serious legal matter that requires immediate attention from a criminal defense attorney. In New York state criminal investigations, District Attorneys have subpoena authority under CPL § 610.20, while the New York Attorney General’s investigative authority, including the power to compel testimony and documents, derives from Executive Law § 63(12).

Mistake No. 6: Waiting Too Long to Hire a Lawyer

Many people delay retaining legal counsel because they believe the investigation will go nowhere or that hiring a lawyer will make them look guilty. In reality, early legal representation can make a meaningful difference. An experienced criminal defense attorney can help protect your rights and preserve potentially important evidence. In some cases, they may even resolve issues before formal charges are filed.

White collar investigations often unfold over months, and decisions made early in the process can have lasting consequences. If you have received a subpoena, been contacted by investigators, or believe you may be the subject of a federal or state investigation, seeking legal counsel as soon as possible is one of the most important steps you can take. The Brill Legal Group represents individuals and businesses at every stage of white collar investigations throughout New York. Contact us at (212) 233-4141 to schedule a free consultation.