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White-Collar Criminal Defense
& Government Investigations

Kostelanetz LLP represents clients in white-collar criminal, corporate, and regulatory investigations by the U.S. Department of Justice and U.S. Attorneys’ Offices, the Securities and Exchange Commission, the Commodities Futures Trading Commission, the Financial Industry Regulatory Authority, U.S. Customs and Border Protection, U.S. Department of Labor, the Internal Revenue Service and state and local prosecutors, among others.

Several of our attorneys have served as federal prosecutors in the Southern District of New York and the U.S. Department of Justice’s (DOJ) Tax Division, as state prosecutors in New York, Virginia, and Massachusetts, and trial counsel at the U.S. Securities and Exchange Commission. In addition, our Director of Investigations was a career special agent and former Chief of the Internal Revenue Service’s (IRS) Criminal Investigation Division. This rich experience in government gives Kostelanetz unique insight into the government’s perspective, as well as the ability to effectively represent clients in every phase of a white-collar criminal investigation or regulatory enforcement action.

Kostelanetz attorneys are regularly retained to represent individuals and entities in investigations and prosecutions involving allegations of federal and state tax crimes, violations of the Bank Secrecy Act (including structuring and reporting violations), antitrust violations, fraud against the United States, including Coronavirus Aid, Relief and Economic Security (“CARES”) Act fraud, securities fraud, customs fraud, bank fraud, mail and wire fraud, including honest services fraud, immigration violations, money laundering, embezzlement, and art fraud.

Kostelanetz also conducts internal investigations for institutional clients, for-profit businesses, exempt organizations, and other entities facing potential criminal charges or regulatory violations, or whose officers or employees may have engaged in misconduct.

Kostelanetz has been recognized by major legal ratings agencies for its white-collar criminal defense work. The firm overall has been recognized by Best Lawyers™ as a Tier 1 National “Best Law Firm” in three categories, Criminal Defense – White-Collar, Tax Law, and Litigation and Controversy – Tax. Additionally, Chambers USA has ranked partner Sharon L. McCarthy in Band 1 for Litigation – White-Collar Crime & Government Investigations – New York.

Securities Fraud

Persuaded the Securities and Exchange Commission (SEC) to abandon insider trading claims against a family insider accused of possessing nonpublic information about an impending merger.

Successfully achieved a negligence-based settlement with the SEC on behalf of the chief financial officer of a public company in connection with a multi-year DOJ and SEC investigation into alleged materially misleading statements and omissions related to a public contract.

Convinced the SEC to abandon securities fraud claims against the ex-chairman of a major telecommunications company.

Persuaded federal prosecutors not to pursue “front-running” claims against a securities specialist.

Successfully defended traders accused by the Commodity Futures Trading Commission of engaging in off-market trading.

Antitrust

Successfully defended a foreign currency exchange trader under investigation by the DOJ’s Antitrust Division for engaging in a price fixing and bid rigging conspiracy through a multi-bank chat that resulted in a major criminal antitrust prosecution of other chat participants; represent the client in related matters being investigated by a foreign government’s competition authority.

Successfully defended a food producer in a criminal antitrust investigation of alleged industry-wide price fixing.

Successfully negotiated immunity agreements for employees of an heir-location company prosecuted for antitrust violations by the DOJ’s Antitrust Division.

Represented an employee of a generic pharmaceutical company in connection with a DOJ Antitrust Division price-fixing investigation.

Successfully represented a senior employee of a municipal bond dealer in a federal antitrust investigation into conspiracy to rig bids on municipal bond issuances that resulted in the prosecution of several other individuals.

Successfully represented an executive of an auto parts manufacturer in a multi-national antitrust investigation into price fixing in the global auto parts industry.

Wire Fraud

Represent various vendors charged in the Southern District of New York with committing wire fraud by paying kickbacks to customer employees.

Represented a client at sentencing in connection with a wire fraud charge, and secured a non-jail sentence for the client, who was facing 33 to 41 months imprisonment under the U.S. Sentencing Guidelines.

Represented pharmaceutical executive at sentencing in the Southern District of New York after he was convicted by a jury of honest services fraud under the wire fraud statute related to his company’s relationship with Valeant Pharmaceuticals. Despite facing a possible sentence of 8 to 10 years, the client was sentenced to a year and a day.

Government Program Fraud

Obtained a below-Guidelines sentence for a restauranteur who was prosecuted for Small Business Administration (SBA) fraud for submitting fraudulent applications to obtain over $3 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).

Achieved a sentence of time served (the day of arrest and processing) for a client who pleaded guilty to failure to pay employment tax with relevant conduct of alleged PPP fraud; the government sought a 30-month sentence.  

Persuaded a U.S. Attorney’s Office not to charge a construction company executive with fraud related to government contracts involving Minority/Women-Owned Business Enterprises (MWBE).

Persuaded a U.S. Attorney’s Office not to charge the owner of an electrical company with wire fraud for defrauding the City of New York through a false invoice scheme; others involved in the conduct were charged and pleaded guilty.

Health Care-Related Fraud

Convinced a U.S. District Judge to grant a motion of acquittal, after eight weeks of trial, in a case involving an alleged health plan insurance fraud.

Represented a spine surgeon after conviction at trial for violation of the federal Anti-Kickback Statute.

Art Fraud

Successfully obtained a downward departure of more than ten years and a sentence of time served (two and a half months) for an art dealer who pleaded guilty to one of the largest art forgeries in history.

Money Laundering/Foreign Corrupt Practices Act (FCPA)

Represented the owners of a bank that allegedly served as a conduit for bribe payments to South and Central American government officials in Brazil’s “Operation Carwash” scandal.

Avoided U.S. criminal charges in a cross-border investigation involving business activities and the flow of funds among the United States, Hong Kong, and Malta.

Represented multiple issuers and an individual in connection with investigations related to the Foreign Corrupt Practices Act as well as anti-money laundering investigations.

Persuaded a U.S. Attorney’s Office not to indict a manufacturer and importer of designer shoes who was accused of engaging in a money laundering scheme.

Criminal Tax

Obtained a 90% downward variance for a doctor who operated several medical practices and owned a Washington, D.C. restaurant, who admitted to employment and corporate tax violations resulting in a tax loss exceeding $2,000,000.

Persuaded a U.S. Attorney’s Office to close a grand jury, cross-border investigation into a high wealth individual involving personal and business tax and reporting obligations related to activities in the United States, Canada, and Bermuda.

Collaborated with German counsel to resolve a German criminal investigation into a U.S.-based executive of a global financial services company arising from disclosures by the company to German tax authorities.

Persuaded a U.S. Attorney’s Office to close a grand jury investigation into a national accounting firm involving positions taken on tax returns filed by a public company and related executives.

Obtained a non-jail disposition for a prominent oncologist who admitted to filing false tax returns and owing more than $750,000 in additional federal income tax.

Obtained a more than 50% downward variance for an owner of numerous food service businesses operating within government buildings in the Washington, D.C. metropolitan area, despite an admission of employment and sales tax loss exceeding $11,000,000.

Customs Fraud

Persuaded a U.S. Attorney’s Office to dismiss a criminal complaint against a businessman who failed to declare his possession of nearly $200,000 in cash as he was leaving the country. Obtained the return of approximately 90% of the seized funds.

Convinced U.S. Customs and Border Protection to discontinue its investigation of a jewelry importer who allegedly maintained three sets of books and submitted false invoices.

Achieved a six-month sentence for a client who faced 51-63 months’ imprisonment under the Sentencing Guidelines after a guilty plea to conspiracy to commit wire fraud for the underpayment of over $1.5 million in U.S. Customs fees related to a clothing company.   

Insurance Fraud

Convinced prosecutor to accept a plea providing for no jail time for a defendant accused of a major, multi-million-dollar insurance fraud.