By Graham Norris

The accountant who discovers suspicious transactions thinks they’re doing the right thing by reporting them. The bank compliance officer flags unusual wire transfers as required by federal law. The disgruntled employee decides to blow the whistle on questionable business practices. What none of them realize is that their actions have just set in motion an investigation machine that could take months or years to reach its conclusion—and by the time targets learn they’re being scrutinized, prosecutors have often already built much of their case.

White collar crime investigations in Texas operate on two distinct levels, each with its own rules, timelines, and consequences. Learning how these investigations unfold—from the initial red flags that trigger scrutiny to the decision whether to file state or federal charges—can mean the difference between cooperative resolution and criminal prosecution.

State vs. Federal White Collar Crime Investigations in Texas

The jurisdiction that handles your case determines everything from which agencies will investigate to the potential penalties you face, and this decision often hinges on specific characteristics of the alleged conduct that may not be immediately obvious.

State-level investigations are handled by local District Attorney offices and police when cases remain confined to Texas and involve smaller dollar amounts. These investigations typically move faster but have access to fewer resources.

Federal jurisdiction triggers when activity crosses state lines, involves amounts typically exceeding $500,000, affects federal programs like Medicare or Medicaid, or spans multiple jurisdictions. The threshold isn’t always about money—using mail or internet can make smaller cases federal matters.

Key investigating agencies include the FBI’s white collar crime division, IRS Criminal Investigation, and the Secret Service for federal cases, while state cases rely on local police detectives and district attorney investigators with varying levels of financial crime expertise.

Federal investigations often take 12-24 months or longer due to their complexity and thoroughness, but they also carry significantly harsher penalties. According to the FBI, white-collar crimes cost $500 billion annually, making them a priority for federal enforcement.

Common Investigation Tactics and What They Mean for Your Case

Investigators employ specific tactics at different stages of white collar cases, and recognizing these methods helps you assess how aggressively you’re being pursued and what investigators believe they can prove.

Document Subpoenas and Records Requests

Investigators typically begin with voluntary requests for documents, testing whether targets will cooperate and what they’re willing to provide. When these requests become formal subpoenas, it signals that the investigation has moved beyond preliminary inquiry into active case development.

The scope and specificity of document requests reveal investigators’ theories about your case. Broad requests for “all financial records” suggest they’re still developing their comprehension, while narrow requests for specific transactions indicate they’ve identified particular areas of concern.

Search Warrants and Financial Analysis

The decision to execute search warrants rather than request documents voluntarily signals that investigators believe you might destroy evidence. Search warrants require probable cause that evidence of a crime exists at the location, meaning investigators have already presented a judge with substantial evidence supporting their theory.

Investigators use sophisticated software to trace money flows, identify unusual patterns, and reconstruct complex transactions across multiple accounts. They look for discrepancies between reported income and lifestyle, unexplained transfers, and transactions that lack legitimate business purposes.

Witness Interviews and Pressure Tactics

Investigators often approach employees, vendors, and business associates before contacting primary targets, gathering information that shapes their questioning strategy. Grand jury subpoenas compelling witness testimony represent a significant escalation, putting enormous pressure on potential co-conspirators to cooperate.

In 2024, Texas saw a $1.4 billion settlement with Meta by the state Attorney General’s office, demonstrating the aggressive enforcement approach Texas takes toward white collar violations.

The Investigation Process: From Initial Red Flags to Formal Charges

White collar investigations typically follow predictable patterns, beginning with quiet document review and analysis before escalating to more aggressive investigative tactics.

How Investigations Begin

Most cases start through routine business oversight rather than dramatic discoveries. Internal company audits uncover discrepancies that companies must report to avoid their own liability. Employee reports—whether from conscience, revenge, or legal requirements—provide investigators with insider knowledge of questionable practices. Banking institutions file suspicious activity reports when they detect unusual transaction patterns.

The initial phase often involves investigators working quietly behind the scenes, reviewing public records, financial filings, and regulatory reports to determine whether suspicious activity warrants deeper scrutiny. This preliminary review can last weeks or months before anyone realizes they’re being investigated.

Building the Paper Trail

Financial records, communications, and transaction histories form the backbone of virtually every white collar prosecution. Investigators prioritize gathering bank statements, accounting records, contracts, and correspondence that demonstrate intent and establish patterns of conduct.

Digital forensics has dramatically expanded the scope of evidence available to investigators. Email communications, text messages, electronic transaction records, and even deleted files can be recovered and analyzed. Investigators often find that people write things in emails they would never say aloud, creating powerful evidence of criminal intent.

Escalation to Formal Investigation

The transition from informal inquiry to formal investigation typically occurs when investigators have enough evidence to justify the resources required for an active case. This shift brings subpoenas for additional records, search warrants for business premises, and formal interviews with witnesses and subjects.

Investigators increasingly rely on cooperating witnesses—employees, business partners, or co-conspirators who agree to provide information in exchange for leniency. The pressure to cooperate can be intense, as prosecutors often charge cooperating witnesses with crimes and then offer reduced sentences based on their level of assistance.

What to Do When You Become Aware of an Investigation

Learning that you’re under investigation creates immediate pressure to act, but many of the instinctive responses people have actually make their legal situation worse rather than better.

Recognizing the early warning signs can provide crucial time to respond appropriately. These signs include unusual questions from auditors or regulatory agencies, requests for documents that seem broader than normal business inquiries, or learning that investigators have contacted your employees, vendors, or business partners.

The most critical mistake people make is speaking with investigators without legal counsel present. Investigators are experienced at making these conversations seem informal and non-threatening, but anything you say can be used to build a case against you.

Preserving all financial records and communications without alteration or destruction is essential, even if some documents seem potentially damaging. Destroying evidence can result in additional obstruction charges that are often easier to prove than the underlying white collar offenses.

Many people’s first instinct is to try to “fix” whatever problem triggered the investigation by making restitution, correcting errors, or changing business practices. While these actions may be morally commendable, they can be interpreted as admissions of guilt and may actually strengthen the prosecutor’s case.

Early legal intervention during the investigation phase offers the best opportunity to influence whether charges are filed and at what level. Experienced attorneys can sometimes persuade prosecutors that conduct was not criminal, work out cooperation agreements that minimize exposure, or ensure that cases remain at the state level rather than escalating to federal prosecution.

State prosecutors may be more willing to work out creative resolutions or accept restitution in lieu of criminal charges, while federal prosecutors often have less discretion and face pressure to pursue cases that meet federal filing thresholds.

Get Experienced White Collar Crime Defense Before It’s Too Late

White collar investigations move methodically but relentlessly, and the window for effective intervention narrows with each passing day. Once prosecutors have built their case and formal charges are filed, your options become significantly more limited and expensive.

Norris Legal Group has successfully defended over 3,600 criminal cases, securing more than 400 dismissals and 60 no-bills for clients facing serious charges. Our unique combination of prosecutorial experience and aggressive defense advocacy allows us to anticipate how investigators will approach your case and develop strategies that resonate with both prosecutors and judges. Contact us immediately for a confidential consultation—in white collar investigations, time is never on your side, but experienced legal representation can be.