Question 1

What should I do if I receive a federal grand jury subpoena or learn I am under federal investigation?

Accepted Answer

You should retain a federal criminal defense attorney immediately — before responding to the subpoena, speaking with investigators, or producing any documents. The moment you become aware of a federal investigation or receive a grand jury subpoena, anything you say to agents or prosecutors can be used against you. An attorney can identify whether you are a target, subject, or witness; assess the scope and stage of the investigation; assert applicable privileges; and engage with the government on your behalf. Armstrong & Bradylyons PLLC represents clients at the earliest stages of federal investigations, before any charges are filed.

Question 2

What is the difference between being a target, a subject, and a witness in a federal investigation?

Accepted Answer

In a federal grand jury investigation, the government designates individuals as targets, subjects, or witnesses. A target is someone the prosecutor has substantial evidence linking to the commission of a crime — the most serious designation. A subject is someone whose conduct is within the scope of the investigation but who has not yet been designated a target. A witness is someone with relevant information but who is not currently under suspicion. These designations can change as an investigation develops. Even individuals initially contacted as witnesses can become subjects or targets. If you have been contacted by federal agents or received a grand jury subpoena, it is critical to retain counsel immediately regardless of your current designation.

Question 3

What is a Civil Investigative Demand (CID) and what should I do if I receive one?

Accepted Answer

A Civil Investigative Demand (CID) is a formal investigative tool used by the Department of Justice's Civil Division and civil fraud units of U.S. Attorney's Offices to compel the production of documents, written responses to interrogatories, or oral testimony in connection with a False Claims Act investigation. Receiving a CID means the government is investigating whether your organization has submitted false or fraudulent claims to a federal program such as Medicare, Medicaid, or a federal contract. CIDs carry serious legal obligations and tight deadlines. You should retain experienced FCA defense counsel immediately upon receipt, as the response strategy and any communications with the government at this stage can have significant downstream consequences in both civil and parallel criminal proceedings. Armstrong & Bradylyons PLLC regularly represents clients in CID responses and throughout FCA investigations.

Question 4

What is insider trading and how do federal prosecutors investigate and charge it?

Accepted Answer

Federal insider trading charges are typically brought under Section 10(b) of the Securities Exchange Act of 1934 (15 U.S.C. § 78j(b)) and SEC Rule 10b-5, or under the misappropriation theory developed in United States v. O'Hagan. The offense involves trading in securities while in possession of material, non-public information (MNPI) in breach of a duty of trust or confidence. Federal investigations are typically joint efforts between the SEC's Division of Enforcement and the DOJ, with FBI assistance. Investigators analyze trading patterns, subpoena brokerage records, review communications, and frequently develop cooperating witnesses. Corporate executives, board members, investment professionals, attorneys, consultants, and their tippees are common targets. Criminal insider trading convictions carry maximum sentences of up to 20 years in federal prison per count.

Question 5

What is the False Claims Act and how does a qui tam lawsuit work?

Accepted Answer

The False Claims Act (31 U.S.C. §§ 3729–3733) is the federal government's primary civil enforcement tool against fraud on the government. It imposes civil liability — treble damages plus penalties of $13,946 to $27,894 per false claim (adjusted for inflation) — on any person or entity that knowingly submits false or fraudulent claims for payment to the federal government. The qui tam provision allows private individuals (called relators or whistleblowers) to file suit on behalf of the government and receive 15 to 30 percent of any government recovery. These cases are filed under seal and served on DOJ, which investigates and decides whether to intervene. Common FCA cases involve healthcare billing fraud, government contract fraud, and SBA program fraud. Armstrong & Bradylyons PLLC represents defendants at every stage of FCA enforcement, from Civil Investigative Demands through trial.

Question 6

What is an internal investigation and when does a company need one?

Accepted Answer

An internal investigation is a structured factual inquiry conducted by outside counsel on behalf of a company, board of directors, audit committee, or special committee in response to allegations of fraud, regulatory violations, financial misconduct, executive wrongdoing, or whistleblower complaints. Companies typically engage outside counsel for internal investigations when there is a credible allegation of misconduct that warrants independent factual development, when a federal regulator (DOJ, SEC, CFTC, OIG) is investigating or has signaled an investigation, when a whistleblower has filed an internal report or complaint with regulators, or when a board determines that management cannot credibly investigate the conduct itself. The investigation typically involves structured witness interviews, comprehensive document review, forensic accounting coordination where appropriate, and a written report of findings designed to withstand scrutiny from federal regulators. Armstrong & Bradylyons PLLC conducts internal investigations drawing on its founding partners' experience building and supervising federal fraud investigations as senior DOJ prosecutors.

Question 7

What is the Foreign Corrupt Practices Act (FCPA) and who does it apply to?

Accepted Answer

The Foreign Corrupt Practices Act (FCPA), codified at 15 U.S.C. §§ 78dd-1 through 78dd-3, prohibits U.S. persons, U.S. issuers, and foreign companies listed on U.S. exchanges from bribing foreign government officials to obtain or retain business. The FCPA is jointly enforced by DOJ (criminal) and the SEC (civil). FCPA investigations are typically initiated following a voluntary disclosure, a whistleblower complaint, or as part of a broader international law enforcement collaboration. Targets include corporate executives, in-house counsel, compliance officers, sales personnel, and third-party intermediaries who facilitated or authorized improper payments. FCPA criminal violations carry up to five years in federal prison per count for individuals. Armstrong & Bradylyons PLLC defends individuals in FCPA investigations and prosecutions, drawing on its founding partners' experience at DOJ's Fraud Section, which is the primary federal unit responsible for FCPA enforcement.

Question 8

What is market manipulation or spoofing, and how is it prosecuted under the Commodity Exchange Act?

Accepted Answer

Spoofing is a form of market manipulation that involves placing bids or offers with the intent to cancel them before execution, in order to create a false appearance of market depth and move prices artificially. It is explicitly prohibited under the Commodity Exchange Act at 7 U.S.C. § 9(a)(2) and is prosecuted by DOJ (criminally) and the CFTC (civilly). Wash trading — the practice of simultaneously buying and selling the same instrument to generate artificial volume — is separately prohibited under 7 U.S.C. § 9(a)(2) and 17 C.F.R. § 1.38. These charges have been applied in recent years to cryptocurrency markets as well as traditional futures markets. Scott Armstrong of Armstrong & Bradylyons PLLC tried the first-ever cryptocurrency manipulation case under Title 15 involving over $300 million in alleged spoof orders and wash trades in the Southern District of Florida.

Question 9

Can a federal white-collar defense attorney help before any charges are filed?

Accepted Answer

Yes — retaining experienced federal white-collar defense counsel before charges are filed is one of the most consequential decisions a client can make. Pre-indictment representation allows counsel to assess the scope and trajectory of the government's investigation; engage with prosecutors on your behalf before charging decisions are made; present exculpatory evidence or mitigating facts to prosecutors during the investigative phase; potentially negotiate a declination, deferred prosecution agreement (DPA), or non-prosecution agreement (NPA); preserve and protect privileged communications and documents; and prepare a defense in parallel with the government's investigation rather than reactively after indictment. Armstrong & Bradylyons PLLC regularly handles pre-indictment representation in federal investigations across all of its practice areas, bringing its founding partners' experience as former senior DOJ prosecutors to anticipate how the government builds and presents its case.

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