Accounting Fraud

Accounting fraud is considered a federal offense, and frequently involves manipulating financial data of public corporations in a way that purposely misleads investors. Very similar to security fraud, accounting fraud may also involve an individual who is employed with an accounting firm and who commits a crime directly related to his or her occupation. Simply stated, deception and manipulation are used to obtain the desired outcome; federal laws are broken in the process. At The Justice Firm, our criminal defense attorneys are committed to providing those accused of accounting fraud with solid, effective legal guidance and representation.

In many cases, federal prosecutors and investigators are involved when someone is suspected of accounting fraud. While you may not be aware of the fact, the Securities and Exchange Commission (SEC) or other government agencies may have been investigating you or your company for a substantial time period in order to collect evidence against you. Until there is sufficient physical evidence to obtain a conviction, charges will not likely be filed or made public. However, when the evidence is sufficient to bring charges, federal prosecutors typically will not be lenient when it comes to a reduced sentence in the case of a conviction, or in negotiating a settlement. We urge you to contact our Los Angeles account fraud lawyers now.

There are a number of criminal offenses which may fall under the category of accounting fraud, including but not limited to:

• Purchasing or selling unregistered securities
• Money laundering
• Insider trading
• When filing documents with the SEC, intentionally falsifying statements or failing to include specific facts
• In regards to interstate communications, excluding facts, distorting statements, or engaging in any scheme for the purpose of defrauding prospective purchasers of securities

Accounting fraud is often comprised of understating expenses and liabilities while overstating revenues and assets, the misuse or misdirection of funds for the purpose of defrauding customers, investors, or shareholders. Sometimes referred to as "creative accounting," a company's image and success level may be exaggerated. Accounting fraud can result in the loss of a devastating amount of money, often millions or billions of dollars, and is most often carried out by those in executive positions with public companies.

Depending on the unique circumstances of your case, criminal penalties for accounting fraud may include substantial fines, restitution, jail time, or probation. When United States securities laws are willfully violated, it may result in penalties which include a maximum of 20 years in prison, and fines of up to $5,000,000 (if a corporation, $25,000,000.

Accounting fraud is an extremely serious criminal offense which requires the skill, experienced, and dedicated approach of a capable Los Angeles criminal defense attorney. If you have been accused of this crime or have already been arrested or charged, we urge you to contact us immediately. Call 310-914-2444 for a free consultation regarding your case.