How Do White-Collar Crime Investigations Start?

Financial Crimes Often Begin with a Tip, Audit, or Red Flag

Unlike crimes that involve immediate physical harm or public disturbances, white-collar offenses often come to light gradually. There are no flashing lights or instant arrests. Instead, these cases tend to unfold over time, sparked by irregular financial activity, a whistleblower report, or a discrepancy discovered during an audit. By the time a person learns they’re being investigated, law enforcement may have already gathered substantial information.

At Lee E. Christian Law, we represent clients throughout Colorado who are facing investigations or charges for white-collar crimes. If you suspect that authorities are looking into your conduct or you've already been contacted by a government agency, understanding how these investigations begin can help you respond strategically and protect your rights from the outset.

Common Triggers That Start a White-Collar Crime Investigation

Investigations into fraud, embezzlement, or financial misconduct usually begin when something raises suspicion. These early red flags often involve anomalies in data, financial reporting, or internal communications. Here are some of the most frequent triggers:

• Whistleblower Reports: A coworker, accountant, or internal auditor may notice irregularities and report them to management or law enforcement.
• Internal Company Audits: Routine or surprise audits can uncover discrepancies in accounting ledgers, payroll, or inventory that lead to deeper scrutiny.
• Financial Institution Alerts: Banks and credit card companies are required to monitor and report suspicious transactions to federal regulators, including transactions flagged for structuring, large cash movement, or potential identity fraud.
• Tax Filing Irregularities: The IRS may initiate an investigation when tax returns contain questionable deductions, undeclared income, or significant inconsistencies.
• Client or Customer Complaints: Victims of scams, fraud, or unauthorized charges may report the issue to local authorities or federal agencies, prompting an investigation.

These cases often begin without the suspect’s knowledge. Investigators may quietly review financial records, monitor communications, and interview third parties to gather enough evidence before making any contact.

Which Agencies Handle White-Collar Crime Investigations?

Depending on the type of alleged offense and the jurisdiction it falls under, several different agencies may be involved. These include:

• Local Police Departments: Often the first to respond to smaller-scale fraud or embezzlement allegations within a single city or county.
• Colorado Bureau of Investigation (CBI): Handles statewide investigations involving complex fraud or multiple jurisdictions within Colorado.
• Federal Bureau of Investigation (FBI): Investigates large-scale fraud, public corruption, wire fraud, and financial crimes that cross state or national borders.
• Internal Revenue Service (IRS): The IRS Criminal Investigations Division pursues cases involving tax evasion, underreporting of income, or falsified returns.
• U.S. Secret Service: Investigates credit card fraud, counterfeit currency, and cyber-related financial crimes.
• Securities and Exchange Commission (SEC): Handles investment fraud, insider trading, and securities violations involving publicly traded companies or brokers.

Sometimes multiple agencies collaborate on an investigation, particularly if both state and federal laws may have been violated. This can significantly increase the complexity and seriousness of the case.

How Do You Know If You're Being Investigated?

Not every investigation begins with a knock at the door. In fact, many suspects don’t find out they’re under scrutiny until months after the inquiry begins. However, there are several signs that may indicate an active or pending investigation:

• You receive a subpoena requesting financial documents or access to personal records
• You are contacted by a law enforcement officer or federal agent for “informal” questioning
• Your employer conducts an internal audit and begins asking detailed questions about transactions or access logs
• You notice changes in your access to company systems, email, or financial accounts
• A search warrant is executed at your home, office, or digital devices

Any of these events should be treated as a serious warning. Even if you haven’t been formally charged, investigators are likely already building a case. Speaking with law enforcement, even casually, without legal guidance can put you at significant risk.

What to Do (and Not Do) If You Suspect an Investigation

When facing a potential white-collar crime investigation, the way you respond can influence the outcome. Here are key actions to take and major mistakes to avoid:

• Contact a criminal defense attorney immediately, even if you haven't been charged yet.
• Preserve documents, emails, and digital communications that may be relevant to your case. Deleting records could be considered obstruction.
• Stay calm and courteous during any interactions with investigators.
• Do not speak to law enforcement, federal agents, or auditors without an attorney present.
• Do not attempt to contact other potential suspects or witnesses about the investigation.
• Do not assume your employer or colleagues will protect you; many internal investigations are shared with authorities.

Early legal representation allows your attorney to engage with investigators, clarify your involvement, and potentially prevent charges from being filed. Even if charges are unavoidable, being proactive with legal counsel can improve your chances of a more favorable resolution.

Protect Your Future Before Charges Are Filed

The investigative stage of a white-collar case is a critical window. You may still have options to correct issues, negotiate outcomes, or explain misunderstandings before formal charges are brought. Waiting until after an arrest or indictment can limit those options and put you at a disadvantage.

At Lee E. Christian Law, we take an active approach to white-collar defense. We help clients understand what’s happening behind the scenes, respond to investigative pressure without making damaging statements, and build a strategy that protects their freedom, reputation, and livelihood. Whether you’re dealing with a suspected embezzlement, wire fraud allegation, or tax-related inquiry, we’re prepared to step in early and work toward the best possible outcome.

If you believe you're under investigation for a financial crime in Colorado, contact us for a confidential consultation. We’ll review your situation, outline your legal options, and provide the guidance you need before charges are filed.