This 5-part blog series breaks down what actually happens when you make the wrong decisions during a federal investigation—from the first FBI knock to the long tail of a felony conviction. Each entry follows my story step-by-step, not as inspiration, but as a record of mistakes, consequences, and what I did to prove I was worth a second look. If you’re under investigation or headed toward sentencing, this series is for you.
The Knock at the Door
On April 20, 2005, two FBI agents stood at the front door of my condo in Studio City, California. One of them was Paul Bertrand. I had no criminal record, no plan for what came next, and no idea what it meant to be a target in a federal case. The agents walked in with binders stacked waist-high. Every email I had ever sent as a broker at Bear Stearns and later UBS was in those binders. I thought they were bluffing. They weren’t.
I told them I’d get a lawyer. They agreed. I did. But what came next wasn’t strategy—it was self-destruction.
What Most People Get Wrong About “Hiring a Good Lawyer”
The advice is always the same: get a good lawyer. I did that. What no one tells you is that hiring a lawyer doesn’t mean anything if you’re not honest with them.
I wasn’t. I lied to my lawyer. I told him I didn’t know about a press release where my hedge fund client claimed a 27% annual return. That client had lost every dollar. I saw the release. I even referenced it in an old email. But when the FBI asked me directly in a proffer meeting if I had seen it, I said no. They let me lie twice. Then they pulled out the email. Case closed.
My lawyer ended the meeting. Later, he told me, “You just obstructed a federal investigation.”
I didn’t know it then, but I had sealed my own fate. That lie gave the government what they needed to push for prosecution.
Why I Lied
I didn’t want to shatter the image I’d spent years building. USC baseball. Young executive. Good kid from a good home. I didn’t want anyone—especially a lawyer—to see me as someone who committed fraud.
So I shifted blame to Bear Stearns. Then UBS. Then my partner. Anyone but me. I spun just enough of a story to keep my lawyer off track, and he believed it for a while. That made it worse. Because behind the scenes, my co-defendant—Keith—was already cooperating. He was sitting with Paul Bertrand and the U.S. Attorney, giving them details about me.
While I was lying to my lawyer, Keith was earning cooperation credit. And I was giving the government exactly what they needed to bury me.
What Happens When the Government Has Proof You Lied
One year passed. No indictment. I convinced myself I had dodged the worst. I even got my real estate license and started rebuilding. Then on April 28, 2006—exactly one year after that FBI interview—my mom called, crying. She saw an article in the Los Angeles Times about Keith’s guilty plea. At the bottom, it mentioned an unnamed broker involved. She asked, “Is that you?”
While I was still on the phone with her, my lawyer called. He asked if I wanted the bad news or the worse news. The bad news was I was going to prison. The worse news was that I’d be lucky to get 60 months.
That five-minute stretch—from the call with my mom to the call with my lawyer—changed everything.
Why This Still Follows Me Today
Years later, Paul Bertrand invited me to speak at the FBI Academy. Before I addressed the room, he told the agents: “If Justin had told us the truth in that first meeting, we never would’ve recommended prosecution.” He was right. But that truth came too late.
What bothers me isn’t just the 18 months I spent in prison. It’s how long I made it harder for the people trying to help me. I had a good lawyer. I had resources. I just didn’t tell the truth.
Every excuse I gave—to myself, to my counsel—made the hole deeper. Every lie turned my case from survivable into something far worse. I thought silence or spin would protect my reputation. What it did was turn me into a convicted felon.
A Question You Need to Ask Yourself Now
Are you telling your lawyer everything? Or are you still trying to protect an image that collapsed the moment your name showed up in a subpoena?
The people who get through this with some dignity don’t spin. They start documenting what happened, why it happened, and what they’re doing now to fix it.
You can’t erase what’s happened. But you can stop making it worse.
If you’re under investigation or already working with counsel, don’t wait for a knock at the door to get serious. Join our next weekly webinar every Tuesday at 11AM Pacific / 2PM Eastern or schedule a personal call. Learn what to do now—before the government builds a binder with your name on it.
Justin Paperny
