This is Part 2 of the 5-part blog series. If you missed Part 1, I shared how one lie during an FBI visit set off a chain of mistakes I couldn’t take back.
The Story I Told—and the One That Got Me Indicted
After the FBI showed up at my door, I hired a well-known law firm. It didn’t matter. I lied to them.
The story I told blamed everyone else. I said UBS should have known. I said my partner managed the money. I said the trades were unsolicited. My lawyer didn’t know I had written an email acknowledging my client’s fraudulent 27% return claim. He thought the government would walk away. So did I.
What we didn’t know was that my co-defendant was already cooperating. While I was pointing fingers, he was handing the government a case. And when I walked into the proffer meeting and lied to the FBI, I gave the government exactly what they needed: proof I couldn’t be trusted.
Why the Truth Matters More Than Your Reputation
Most defendants don’t want to admit they did anything wrong. It’s easier to focus on what the company did. What compliance missed. What a partner hid.
I leaned on that. I was angry at UBS. And yes, they were later forced to make restitution. But none of that mattered when the government had proof that I had lied.
Your reputation won’t protect you. Neither will the story you tell yourself about how it wasn’t your fault. The only thing that matters is what the government can prove. And if they catch you lying, everything else—including sentencing relief—is off the table.
What Lying Did to My Defense
When my lawyer ended the meeting with the FBI, I saw a shift. He no longer saw me as someone who had been caught in a mess. He saw someone who couldn’t be trusted. That changed the dynamic entirely.
Good lawyers rely on trust. They’re willing to fight for you, but not if you keep secrets. Every hour they spend chasing a story you made up is an hour wasted.
And it gets worse. The more time and money you burn, the more credibility you lose with the judge. You look like someone who only got honest when there was no other option left.
Who Benefited From My Mistake
Keith, my co-defendant, played it differently. He cooperated. He told the truth. While I was hiding behind denials, he was showing the government they could work with him.
Cooperation credit is powerful. Keith got it. I didn’t.
When he was indicted again later, the government offered me a second chance. But by then, I had spent a year burning goodwill and trust. I had to start over—from a deficit I created.
A Question You Need to Ask Yourself Now
Are you making your lawyer chase a story you know isn’t true? If so, you’re not just hurting your defense—you’re helping the government make their case.
Stop worrying about your reputation. Focus on telling the truth and building a record that shows you’re not just sorry you got caught.
If you’re already under investigation or charged, your lawyer can’t help you unless you’re honest. Join our weekly webinar every Tuesday at 11AM Pacific / 2PM Eastern, or schedule a personal call to find out what to do while you still can.
Justin Paperny
