If you’ve committed a crime, a government investigation may be underway. It’s tempting to fall into a mindset of ignoring Government Investigation Risks, convincing yourself that everything is fine. Maybe months or even years have passed, and federal agents haven’t confronted you about it. You might think, “They’ll never find out. I’m in the clear and it is all good.”
The reality, however, is far more complex. Taking no action—especially during what some call the precharge phase—can have significant risks and lead to criminal charges, federal prosecution, or other grave consequences in federal courts.
I know this mindset because I once lived it. My name is Justin Paperny. After I engaged in a fraudulent scheme with a client at UBS, I failed to grasp the potential risks of ignoring the signs of a criminal investigation. I didn’t stop making bad decisions. I didn’t take responsibility or address the problem. Instead, I convinced myself that I could move on as long as I didn’t get caught.
Rather than seeking legal advice or stopping the misconduct, I pretended everything was fine. I refused to confront the truth, clung to my lifestyle, and told myself the United States government—whether through the U.S. Department of Justice, the Security and Exchange Commission, or some other investigative agency—would never find out.
Looking back, I can tell you that was the worst decision I could have made.
Here’s my story—and what I wish I’d done differently.
My Story: Two Years of Bad Decisions
The account with my former client wasn’t just significant—it was everything. I had recently joined UBS, my fourth brokerage firm, and received a significant signing bonus to make the move. I felt immense pressure to generate profits for the firm. If I didn’t perform, I’d lose my job, and worse, I’d have to pay back the bonus.
I made a series of bad decisions. I met with one of my clients, a hedge fund manager. During that meeting, I learned that he had produced a series of false statements, resulting in significant losses for his customers. I could see that he had violated securities laws.
Instead of handling the situation the right way or consulting an outside counsel or in-house counsel for legal representation, I collaborated with others in a scheme to cover up his crime. My response implicated me in the fraud. We created relevant documents that would absolve my partner and me from any responsibility or scrutiny of federal agencies or law enforcement agencies if the hedge fund manager continued to break the law. I focused on the short term—keeping the money coming in—without considering the long-term damage.
The Emotional Toll of Living a Lie
Every day, I wondered if federal prosecutors would catch on. That anxiety didn’t just live in the back of my mind—it consumed me. It affected my sleep, my relationships, and my ability to focus at work. The very thought of a Special Agent from the Federal Bureau of Investigation (FBI) or the Inspector General knocking on my door made me feel physically ill.
I started questioning my worth as a professional. Would I be successful without this client?
Could I maintain my lifestyle if I lost the commissions? At the time, I tied my entire self-worth to that account, which made it even harder to imagine doing the right thing and seeking legal counsel.
Missed Opportunities
Looking back, I see all the potential benefits and different ways I could have responded:
- I Could Have Stopped the Fraud: Yes, I might have lost my job and signing bonus, but I would have done the honorable thing. It might also have mitigated criminal penalties down the road and shown full cooperation with investigating agents.
- I Could Have Started Fresh: With my education, experience, and youth, I had so many options. I could have rebuilt my career instead of compounding my mistakes and criminal liability.
- I Could Have Owned My Actions: Coming clean might have given me cooperation credit—a potential benefit the DOJ investigation sometimes extends in such cases.
But I didn’t do the right thing. At the time, it was easier to blame UBS. I told myself, “This is what they want. They’re just as responsible as I am.” That denial didn’t work. In the vast majority of federal investigations, personal accountability is non-negotiable.
Why We Freeze in the Precharge Phase
I know I’m not alone in this. A lot of people in the precharge phase freeze or avoid making good decisions instead of confronting federal agents or following best practices like consulting a law firm.
Why?
- Fear: We’re afraid of what might happen if we come clean, the criminal prosecution, or obstruction of justice charges that might follow.
- Denial: It’s easier to think, “This will blow over,” than to face the reality of the situation and seriousness of a federal investigation.
- Ego: Admitting wrongdoing feels like failure, and no one likes to admit failure.
- Short-Term Thinking: Like me, many people focus on the immediate consequences instead of the long-term ones, which can include criminal charges.
The truth is that ignoring the problem doesn’t make it go away. It just makes the consequences worse. Federal courts, federal judges, and law enforcement agencies do not close cases simply because time passes.
The Cost of Doing Nothing
Here’s what I learned the hard way:
- The Truth Always Comes Out: White-collar investigations take time—months, even years. While I thought I was clear, investigators gathered evidence and spoke to others involved.
- Others Will Cooperate First: People you’re working with may decide to save themselves by cooperating early and providing relevant facts to law enforcement, seeking a plea deal or Safe Harbor in exchange for their full cooperation. Once they do, your legal representation options shrink.
- Regret is a Heavy Burden: I regret every day I spent making bad decisions and avoiding responsibility. I jeopardized my career, my relationships, and my freedom—all because I didn’t stop to think about the long-term consequences of my actions and false statements.
What You Can Do Right No
If you’re in the precharge phase of a federal investigation, criminal investigation, or civil investigation, consider taking steps that I wish I had taken, including:
- Embrace Reality: You can’t change the past, but you can influence what happens next. Recognize the potential risks are real—government investigation means federal agents (possibly from the Justice Department, the FBI, or other law enforcement agencies) are already gathering relevant evidence.
- Stop the Misconduct: If violations of law are ongoing, stop them immediately. Continuing wrongdoing can lead to additional criminal penalties or new charges, including obstruction of justice.
- Hire a Lawyer: Speak with a reputable law firm—one well-versed in criminal defense—and consider the attorney-client privilege or client privilege protections. Outside counsel or in-house counsel can guide you in a timely manner, ensure constitutional rights are respected, and advise on work product protection. If you need counsel, we can help you find a top lawyer.
- Build Accountability: Show you’ve learned from your mistakes—whether by paying back money, implementing Corporate Compliance Programs are good options. Perhaps starting a new career in a different industry.
- Recognize the Risks of Waiting: Delaying action doesn’t make the problem go away. Investigators are building their case. The longer you wait, the worse your options will get. (In an upcoming webinar, we will interview Former FBI Agent, Paul Bertrand, to learn more about the costs of delaying.)
Lessons Learned
Like most people, when I look back, I wish I had made better choices. I wish I had stopped the fraud. I could have reported my client for his criminal activity and wrongdoing, sought legal counsel sooner, admitted my mistakes, and worked to rebuild my life with integrity. I had options.
The truth is, as humans, we all make bad decisions. The question is, how do we respond to those decisions? Do we double down and make things worse, like I did? Or do we face reality, stop the bleeding, and deal with the consequences?
It’s not easy to take responsibility and confront the reality of a DOJ investigation, but the sooner you do it, the better. Addressing the problem early can likely secure you a cooperation credit, mitigate criminal penalties, limit the long-term damage and give you a chance to start rebuilding.
Inaction is a dangerous trap. It keeps you stuck in fear, hoping for the best while the situation gets worse behind the scenes. The emotional toll is crushing, and the consequences can be devastating.
You cannot control the past, but if you are reading this, you are in a position to stop the bleeding.
Take Action Now
Ignoring government investigation risks is a recipe for disaster. The consequences can be devastating, extending beyond criminal law implications to jeopardize your personal relationships, career, and freedom. Even if your wrongdoing spans multiple jurisdictions—like New York or other states—the U.S. Attorney and federal courts have wide reach. In recent years, there’s also been growing concern about Civil Rights, human rights, and constitutional rights violations, so thorough legal representation is crucial.
If you sense a federal crime or civil investigations are on the horizon, do yourself a favor:
- Seek professional help—contact defense lawyers with expertise in federal law enforcement matters.
- Cooperate in good faith—full cooperation in such cases may reduce criminal liability.
- Protect your interests—follow best practices like establishing a legal hold, preserving privileged information, and offering timely disclosure of relevant information to avoid worse outcomes.
You can’t control the past, but you can still manage what happens next. If you don’t know where to start, consider joining our weekly webinar on Monday at 1 PM Pacific / 4 PM Eastern. We will address questions about ignoring government investigation risks, federal investigation procedures, and important steps you can take immediately.
If you’re ready to explore your options, reach out for a Free Initial Consultation today and read our many client reviews at Trust Pilot and learn from their experiences.
- Speak with a WCA Mitigation Expert: Schedule Your Intro Call or call/text us directly at 949-799-3277.
Take action now—because inaction today can become criminal prosecution tomorrow.
Justin Paperny