A few years ago, federal authorities seemed to be heavily investigating pharmacies, pain clinics and individual doctors for signs of Medicare fraud and assorted drug crimes. Now, the focus has shifted once again. Going into 2020 and beyond, you can generally expect prosecutorial efforts to be renewed against a familiar issue: accounting fraud.
Typically, upper-level executives have escaped the direct wrath of the federal authorities when a company is suspected of accounting fraud. However, right at the end of 2019, prosecutors signaled that may be a lost luxury when they indicted several top executives or former executives of Outcome Health for lying to a bank in order to secure loans and equity investments. They are now facing charges of wire and mail fraud and money laundering.
Federal authorities also came down hard on two former executives with MiMedx. They’re accused of forcing distributors to take more of their products than needed just so they could inflate their sales on paper, which is a securities violation. BMW and Fiat Chrysler are also facing investigations, although no specific individual appears to be in the hot seat.
Insider trading is another area of investigation that may heat up. The Insider Trading Prohibition Act has already passed the House of Representatives. If it survives the Senate, it will give “insider trading” a specific — and very broad — definition that prosecutors can use to bring charges. Many methods of obtaining confidential information would become federal crimes.
Whatever the situation, a federal investigation into white collar criminal activity can upend your business and your life. Find out how an experienced defense attorney can help.