When people are confronted by federal agents, investigators or other authorities about their or someone else’s alleged criminal activity, too often they don’t answer their questions truthfully. This is especially true if the interaction is unexpected. They often assume that because they aren’t under oath, they have no legal obligation to tell the truth.
That’s not the case. Lying to federal authorities can have serious consequences.
Ask Martha Stewart. Stewart, who’s best known for her lifestyle brand, served a federal prison sentence after she got involved in insider trading. While she faced a number of charges, a jury convicted her on charges related to lying to federal investigators rather than the actual insider trading charges.
The materiality of the lie is critical
Not every lie to federal authorities is going to result in being charged with a federal crime. However, “material” lies can carry serious consequences. If a person lies about the key facts of the case or does something to prevent authorities from learning the truth or getting the evidence they need to charge or convict someone, that’s considered “material.”
According to federal law, a “materially false, fictitious, or fraudulent statement or representation” to federal authorities is a crime. It’s an offense separate from the one that’s being investigated. That means, for example, that if an employee lies to authorities who are investigating their boss for embezzlement, they can end up in prison even if they weren’t involved in their boss’s activities.
Too often, people sit down with agents or investigators alone because they fear that getting legal guidance will make them look guilty. However, you have the right to representation, and it’s wise to assert it. Federal authorities are generally adept at their jobs. Don’t make the mistake of assuming you can outsmart them. It’s critical to assert and protect your rights.
