What’s the Difference Between Civil and Criminal Investigations?

Understanding the line between civil and criminal law is essential. Here's how they differ:

A letter from a federal agency may sound like a simple regulatory review. But if that civil investigation turns criminal, your business—and your future—could be at serious risk.

At Ludwig Law Firm, we help individuals and companies across Arkansas respond to federal investigations before they escalate. The time to act is early, not after you’ve been indicted.

As always - if you have a legal question you want answered in a future blog, submit it via the form on this page. Now, let's dive in!

Civil investigations don’t always stay civil. If agents find evidence of fraud, false reporting, or intent to deceive, they may refer the case to prosecutors.

When Civil Investigations Turn Criminal

Federal agencies are often watching for criminal conduct—even during routine audits. Common triggers for escalation include:

• Evidence of intentional fraud or deceit

• Falsified documents uncovered during compliance checks

• Witness testimony indicating criminal behavior

• Suspicious financial patterns, shell companies, or money laundering

Signs That Criminal Charges Could Be Coming

These red flags may suggest your civil investigation is turning criminal:

• Grand jury subpoenas issued in parallel

• Visits or interviews by FBI agents or federal prosecutors

• Requests for emails, communications, or accounting records

• Referrals from civil agencies (SEC, IRS, EPA) to the Department of Justice

What Kind of Civil Violations Can Become Criminal?

Here are examples of federal issues that can go from civil to criminal:

Contact Ludwig Law Firm Today

Call 501-838-4043 or visit ludwiglawfirm.com. We’ll protect your rights and help you stay one step ahead of federal prosecutors.

📞 Call Ludwig Law Firm today at 501-838-4043
🌐 Visit us at ludwiglawfirm.com
📍 Proudly serving clients in the Eastern and Western Districts of Arkansas

Disclaimer: The information provided in this blog is for general informational purposes only and is not intended as legal advice. Reading this blog or interacting with Ludwig Law Firm through this content does not create an attorney-client relationship. Every legal case is different, and you should not act or rely on any information in this blog without first consulting with a licensed attorney about your specific situation. For legal guidance tailored to your needs, please contact Ludwig Law Firm directly.

The DOJ doesn’t need a conviction in the civil case to pursue criminal charges. All it needs is evidence of criminal intent.

How to Protect Yourself If You’re Being Investigated

Cooperate—but with legal guidance. Many people try to fix things themselves and end up making damaging admissions.

• Retain counsel immediately

• Preserve all documents—never destroy anything

• Avoid unsupervised interviews or written statements

• Do not speculate or guess during questioning

We know how to respond to agency requests without exposing you to criminal risk.

Get Defense Early—Before It’s Too Late

When federal agencies knock, we don’t panic—we prepare. And when a case calls for deep investigative firepower or aggressive litigation, we often team up with Warden Law Firm. When a client needs both finesse and firepower, a Ludwig and Warden partnership is the best option.