Two Fronts, One Massive Risk
In high-stakes white-collar cases, it is common to be fighting on two fronts simultaneously. You may find yourself responding to a civil lawsuit or an SEC/FTC regulatory inquiry at the exact same time the Department of Justice (DOJ) is conducting a criminal investigation into the same conduct. This is known as a "parallel proceeding."
While these cases move in different venues, they are inextricably linked. The biggest danger is that testimony or documents produced in a civil or regulatory setting—where protections are fewer—will be handed over to criminal prosecutors and used to secure an indictment. At Stanton Law DC, the firm synchronizes the defense across both fronts to prevent one from compromising the other.
The Fifth Amendment Trap
In a criminal case, your silence cannot be used against you. However, in a civil case, if you "plead the fifth" to avoid incriminating yourself, the judge or jury is often allowed to draw an "adverse inference"—essentially assuming that the answer would have been damaging. This creates a terrifying choice: testify and risk prison, or stay silent and lose the civil case. Stanton Law DC helps navigate this "Hobson's Choice" with precision.
Common Sources of Parallel Action
- DOJ + SEC: Criminal fraud charges running alongside an SEC civil enforcement action for securities violations.
- Criminal Prosecution + Civil Lawsuit: A business partner or shareholder sues you civilly for the same conduct being investigated by a Grand Jury.
- DOJ + Regulatory Boards: Professional licensing boards (like FINRA or state medical boards) investigating conduct that is also the subject of a criminal inquiry.
Our Strategic Response
1. Seeking a Stay of Proceedings
One of the firm's first priorities is often asking the civil court to "stay" (pause) the civil litigation until the criminal matter is resolved. This prevents the government from using civil discovery—which is much broader than criminal discovery—as a "backdoor" to gather evidence for a prosecution.
2. Information Control
Stanton Law DC monitors every document production and deposition in the civil case. If a stay is not granted, the firm works to secure Protective Orders that limit the government's ability to share information between the civil and criminal teams.
3. Coordinated Testimony
If a client must testify in a regulatory or civil setting, the firm provides exhaustive preparation. Stanton Law DC works to ensure the client understands exactly where the "criminal line" is drawn and when it is strategically necessary to assert constitutional rights, regardless of the civil consequences.
The "Clean Team" Defense
Sometimes the government uses a "Wall" or "Clean Team" to keep civil investigators separate from criminal ones. The firm holds the government to these standards, fighting to ensure that these "Walls" aren't being breached behind the scenes to a client's detriment.