Many people who are suspected by authorities of committing white collar crimes learn that they and possibly friends or business associates are under investigation well before they face an arrest. It’s not uncommon for federal agents to show up at their home or office or call them in to “have a chat” or “clear up some things.”
Experienced federal authorities are adept at making people feel comfortable and letting their guard down. In an effort to seem innocent (whether they are or not), those under investigation may talk to authorities without legal representation, which is never wise.
What too many people don’t realize is that lying to federal agents and prosecutors can be a federal crime even though they aren’t under oath. In fact, a person may end up facing consequences for being untruthful during questioning rather than for the crime for which they’re being questioned.
A good example of this is what happened to lifestyle entrepreneur Martha Stewart. Many people know that she was charged with insider trading over two decades ago and served time in federal prison. However, she wasn’t convicted for charges involving insider trading. A jury convicted her of the crime of lying to federal investigators.
What does federal law say?
Specifically, the statute says that anyone who “knowingly and willfully … makes any materially false, fictitious, or fraudulent statement or representation” is violating federal law. A number of other high-profile business and political leaders have also served time for the same crime.
It’s not uncommon for highly successful people to look down on and think they can outsmart federal employees. However, those who investigate white collar crimes often have plenty of experience and expertise in what they do.
Why materiality matters
The law, as noted, refers to “materially” false statements. A person typically is only charged with this offense if their lie or misrepresentation is relevant to the crime under investigation and harms the authorities’ ability to investigate or prosecute the crime
For example, if someone says they weren’t having an affair with a married co-worker when they actually were, that may not be material to a case involving their manager’s alleged wrongdoing. If they say they didn’t know their boss was engaged in criminal wrongdoing when they did know, however, that would be considered a “materially false” statement.
It’s always advisable to have legal representation when talking with any federal authorities, regardless of whether you’re told you’re under investigation. This is the best way to protect your rights and avoid unnecessary complications.