Protecting Businesses from Criminal Prosecution: Answers to Our Most Frequently Asked Questions

From the Team

Every week, entrepreneurs reach out to us with questions that may sound different—but they all boil down to the same thing: “What’s going on, and what should we do now?” We’ve compiled the most common ones and answered them honestly—without legal jargon and without empty promises.

Q: Law enforcement came to our office to conduct a search. Our employees are panicking. Where do we start?

With one phone call—to a lawyer. Everything else can wait.

While the lawyer is on the way—ask all employees not to explain anything or sign anything. This is not obstruction of justice—it is everyone’s procedural right.

Next: demand to see the investigating judge’s search warrant, and verify which premises and exactly what items are authorized to be searched. Investigators often exceed the scope of the warrant—and every such violation is grounds for appeal and for having the seized evidence declared inadmissible.

Record everything on video. Every detail can matter.

Q: We are being audited by the State Tax Service. How can we tell if this is a routine audit or the start of criminal proceedings?

The line between a tax audit and a criminal investigation can be very thin—and it blurs imperceptibly.

Warning signs: inspectors are requesting documents covering an unusually long period, asking about specific counterparties or officials, posing questions that go beyond the scope of the audit, or your data has already appeared in the registry of pre-trial investigations.

One piece of advice: from the very first day of the tax audit, involve a lawyer in your interactions with the inspectors. Anything you say or provide during the audit may be used as evidence in criminal proceedings.

Q: A partner is attempting to take over the company using forged documents in the registry. What should we do, and how quickly?

Very quickly. Corporate raiding through registry actions is one of the fastest ways to lose a business. Changes to the director, articles of incorporation, or list of shareholders in the registry can be made in a matter of hours.

The first step is to file a motion to suspend registration actions and block further changes. At the same time, file a report with the police regarding the forgery of documents and file a lawsuit in court to overturn the illegal registration actions.

Time is of the essence here: the longer the illegal changes persist, the harder they are to reverse. If you suspect a hostile takeover—don’t wait for confirmation; act immediately.

Q: We have been charged with fraud due to a commercial dispute with a counterparty. Is this legal?

Unfortunately, this happens—and quite often. The statute on fraud or misappropriation of property is frequently used as a tool of pressure in ordinary commercial disputes.

The key question is: Are there signs of a crime here, or is this a civil dispute disguised as a criminal proceeding? This is a fundamental difference that must be proven—and one we know how to prove.

If proceedings have already been initiated—do not provide any explanations without a lawyer. The defense strategy is shaped from the very first word you say to the investigator.

Q: The company’s director has been summoned for questioning as a witness. Does he have the right to a lawyer?

Yes, and this right is absolute. A witness has the right to legal assistance during questioning—and a lawyer may be present to object to improper questions.

Важливий нюанс: статус свідка може змінитися на підозрюваного в будь-який момент — навіть під час того самого допиту. Тому директор, якого викликають «просто поговорити», ніколи не повинен іти на допит без адвоката.

Запам'ятайте просте правило: слідчий не є другом компанії. Навіть якщо він дуже ввічливий.

An important point to note: a witness’s status can change to that of a suspect at any moment—even during the interrogation itself. Therefore, a director who is summoned “just to talk” should never attend an interrogation without a lawyer.

Remember this simple rule: the investigator is not a friend of the company. Even if he is very polite.

Q: Our corporate accounts have been frozen as part of criminal proceedings. Business has come to a standstill. What can be done?

The seizure of accounts can be challenged—and quite effectively, if you act quickly.

The order to seize assets is issued by an investigating judge. It can be appealed in the appellate court by demonstrating the disproportionate nature of the measure or the lack of grounds. You can also file a motion to replace the seizure of accounts with another form of security.

At the same time, it is worth analyzing what stage the proceedings are at and what the actual evidence base of the investigation is. Sometimes the freezing of accounts is a form of pressure, not a real necessity. We know how to distinguish between the two.

Q: When should you contact a lawyer—once proceedings have already begun, or earlier?

Earlier. Always earlier.

If you’ve received any warning signs—a summons for questioning, the start of an audit, unusual activity by a counterparty or partner, or suspicious interest from law enforcement in your company—that’s already a reason to seek consultation.

A defense strategy developed before the investigation gets underway costs significantly less—and offers far more options. A defense launched after a formal notice of suspicion has been served is a battle fought under conditions where some ground has already been lost.

A preventive legal audit of your business is the most cost-effective way to avoid costly problems.

Do you have a question that isn’t listed here? Ask us.

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