What Is a Federal Grand Jury Investigation?
A federal grand jury investigation is a confidential legal process used by federal prosecutors to determine whether there is sufficient evidence to charge someone with a federal crime.
In simple terms, it is a secret investigative stage that occurs before formal criminal charges are filed in federal court.
Federal grand juries have broad investigative powers. They can issue subpoenas requiring witnesses to testify under oath or produce documents and other evidence relevant to a criminal investigation.
Unlike police searches, grand jury subpoenas do not require probable cause.
A federal grand jury can investigate a wide range of potential crimes, including white-collar offenses, fraud schemes, drug trafficking, public corruption, and organized crime.
During the process, individuals who were initially witnesses can later become suspects if evidence suggests involvement in criminal activity.
Because federal grand jury investigations can lead directly to criminal indictments, responding properly to a subpoena or target letter is extremely important.
For the best possible outcome, consider contacting an experienced California criminal defense attorney at Cron, Israels & Stark. We are here to help!
To schedule a consultation, just give us a call at (424) 372-3112 or fill out our contact form anytime.
What Is a Federal Grand Jury?
A federal grand jury is a group of citizens convened to investigate possible federal crimes and decide whether charges should be filed. Its purpose is not to determine guilt or innocence, but rather to decide whether there is enough evidence to justify a criminal prosecution.
Federal grand juries have the following characteristics:
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They may include up to 23 jurors
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At least 16 jurors must be present for proceedings
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A minimum of 12 jurors must vote to return an indictment
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They usually serve for an 18-month term
Federal prosecutors present evidence and witnesses to the grand jury during this period. If the grand jury determines there is sufficient evidence, it will issue a federal indictment. That indictment formally begins the criminal case in federal court.
Unlike trial juries, federal grand juries operate entirely in secret.
How Federal Grand Jury Investigations Work
Federal prosecutors use grand juries to collect evidence during criminal investigations. These investigations often involve multiple witnesses and extensive document review.
Typical investigative steps may include:
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Issuing subpoenas for financial records or business documents
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Calling witnesses to testify under oath
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Reviewing evidence gathered by federal law enforcement agencies
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Presenting evidence to jurors for consideration
Grand jury proceedings are supervised by a federal judge, but judges rarely interfere with the investigative process unless legal issues arise.
The secrecy of the process allows prosecutors to investigate potential crimes without alerting suspects prematurely.
What Is a Target Letter?
During a federal investigation, prosecutors may send a document known as a target letter to a suspect.
A target letter is a formal notification from the United States Department of Justice informing a person that:
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The government believes the person may have committed a federal crime
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The person may have participated in criminal activity
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The person may possess important knowledge about the alleged offense
Target letters are commonly used in white-collar investigations, including fraud, securities violations, or financial crimes, but they may appear in any federal criminal investigation.
The letter usually identifies:
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The federal statutes under investigation
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Contact information for the prosecutor or federal agent
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A deadline for responding
Receiving a target letter is a serious development because it often means prosecutors are considering filing criminal charges.
Anyone who receives a target letter should consult a federal criminal defense attorney before contacting investigators.
What Happens If You Receive a Federal Grand Jury Subpoena?
A federal grand jury subpoena requires a person to either testify before the grand jury or produce requested documents.
There are two common types of subpoenas:
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Subpoena ad testificandum requiring testimony
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Subpoena duces tecum requiring production of documents
Responding incorrectly can expose a person to serious legal consequences. It is important to work with a federal criminal defense lawyer who understands federal procedures.
An experienced attorney can:
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Determine whether you are a witness, subject, or target of the investigation
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Communicate with federal prosecutors on your behalf
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Evaluate whether legal objections to the subpoena exist
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Protect your constitutional rights during testimony
You should never destroy or alter documents after receiving a subpoena because doing so could lead to obstruction of justice charges.
What Are the Risks of Grand Jury Testimony?
Although grand juries only determine whether charges should be filed, testifying before one carries significant legal risks.
Federal prosecutors often direct investigations toward individuals they believe may have committed a crime. As a result, anyone testifying may face potential criminal liability depending on the evidence presented.
Even witnesses who believe they have done nothing wrong may face legal exposure if their testimony is inaccurate or inconsistent.
False Declarations
Witnesses who testify before a federal grand jury must do so under oath. Making a knowingly false statement can lead to prosecution for perjury under federal law.
False declarations include:
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Knowingly making false statements under oath
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Submitting documents containing false information
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Providing misleading testimony during the proceeding
A conviction for false declarations can result in fines and up to five years in federal prison.
Inconsistent Statements
Even when prosecutors cannot prove which statement is false, inconsistent statements can still lead to charges.
Federal law allows prosecutors to pursue perjury charges if a witness makes two or more statements that contradict each other on a material issue.
Witnesses may be called back multiple times to testify before a grand jury, increasing the risk that inconsistent statements could occur.
Related Federal Crimes Often Investigated by Grand Juries
Federal grand juries investigate a wide variety of federal offenses. These investigations often involve complex criminal conduct, financial crimes, and large-scale criminal enterprises. Below are some of the most common federal crimes that may be examined during a grand jury investigation.
Wire Fraud – 18 U.S.C. § 1343
Wire fraud involves using interstate electronic communications to carry out a scheme to defraud. This can include phone calls, emails, internet transactions, or electronic transfers designed to obtain money or property through deception.
Wire fraud investigations frequently involve financial fraud schemes such as:
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investment fraud
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online scams
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business fraud
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cryptocurrency fraud
Convictions for wire fraud can result in significant prison sentences and substantial financial penalties.
Mail Fraud – 18 U.S.C. § 1341
Mail fraud occurs when the United States Postal Service or other commercial carriers are used to further a scheme to defraud.
This federal statute is often used in investigations involving:
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insurance fraud
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telemarketing scams
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fraudulent business practices
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consumer fraud schemes
Because many fraudulent schemes involve mail delivery at some stage, mail fraud charges are commonly included in federal indictments.
Conspiracy – 18 U.S.C. § 371
Federal conspiracy charges arise when two or more individuals agree to commit a federal crime and take at least one step to carry out that plan.
Conspiracy charges allow prosecutors to pursue all members of a criminal enterprise even if some individuals were not directly involved in committing the underlying offense.
Grand jury investigations often focus on conspiracy allegations in cases involving:
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organized crime
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financial fraud rings
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public corruption
Obstruction of Justice – 18 U.S.C. § 1503
Obstruction of justice occurs when someone interferes with a federal investigation or judicial proceeding.
Examples of conduct that may lead to obstruction charges include:
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destroying evidence
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altering records or documents
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influencing or intimidating witnesses
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lying to investigators
Obstruction of justice charges frequently arise during grand jury investigations when individuals attempt to conceal evidence or interfere with the investigation.
Perjury – 18 U.S.C. § 1623
Federal perjury occurs when a person knowingly makes a false statement while under oath during a federal proceeding, including grand jury testimony.
Because witnesses testify under oath before the grand jury, prosecutors closely review testimony for accuracy and consistency.
Perjury charges may arise if a witness:
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knowingly provides false testimony
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submits false documents under oath
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makes materially misleading statements during questioning
Convictions for perjury can result in fines and prison sentences of up to five years.
False Statements to Federal Investigators – 18 U.S.C. § 1001
Federal law makes it a crime to knowingly make false statements or conceal material facts when dealing with federal investigators.
A person may face charges under this statute if they:
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lie to federal agents
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submit false information during an investigation
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falsify documents or records
False-statement charges are commonly filed in connection with grand jury investigations because witnesses are often interviewed by federal agents before appearing before the grand jury.
Money Laundering – 18 U.S.C. §§ 1956 and 1957
Money laundering involves conducting financial transactions designed to conceal the origin of illegally obtained money.
Grand jury investigations frequently examine money laundering activities connected to:
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drug trafficking organizations
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fraud schemes
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organized crime
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international financial crimes
Convictions for money laundering can lead to lengthy prison sentences and the forfeiture of assets.
Racketeer Influenced and Corrupt Organizations Act (RICO) – 18 U.S.C. § 1962
RICO charges apply when individuals participate in an ongoing criminal enterprise that commits multiple related criminal acts.
Federal prosecutors use RICO statutes to prosecute large criminal organizations involved in:
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organized crime
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corruption schemes
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fraud networks
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illegal business enterprises
Grand jury investigations often play a critical role in gathering evidence against multiple members of a criminal enterprise.
Frequently Asked Questions
What is the purpose of a federal grand jury investigation?
The purpose of a federal grand jury investigation is to determine whether sufficient evidence exists to charge someone with a federal crime.
Are federal grand jury proceedings public?
No. Federal grand jury proceedings are secret in order to protect witnesses and preserve the integrity of the investigation.
Do I have to testify before a grand jury?
If you receive a subpoena requiring testimony, you generally must appear. However, you may invoke the Fifth Amendment if testimony could incriminate you.
Can I bring my lawyer into the grand jury room?
No. Attorneys cannot accompany witnesses into the grand jury room, but they can remain outside and advise clients during breaks.
What is the difference between a witness, subject, and target?
A witness has information about the investigation. A subject is someone whose conduct is being examined. A target is someone prosecutors believe committed a federal crime.
How Federal Grand Jury Defense Attorneys Help
Constitutional rights apply during federal grand jury investigations. These protections include the privilege against self-incrimination and the right to consult with an attorney.
Although attorneys are not allowed inside the grand jury room, they can remain nearby and advise clients before and after testimony.
A federal defense lawyer can help you:
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Decide whether to testify or invoke the Fifth Amendment
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Prepare for questioning by federal prosecutors
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Review subpoena requests for documents
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Challenge improper subpoenas
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Ensure testimony remains truthful, clear, and non-incriminating
An attorney can also review transcripts of grand jury testimony to ensure statements remain accurate and consistent if a witness is asked to testify again.
If you receive a federal grand jury subpoena or target letter, speaking with an experienced federal criminal defense attorney as soon as possible can be critical to protecting your rights and avoiding criminal charges.
The defense attorneys at Cron, Israels & Stark, based in Los Angeles, are ready to assist. Book your consultation through the contact form or call us at (424) 372-3112.