18 U.S. Code § 1519 - Destruction, Alteration, or Falsification of Records in Federal Investigations and Bankruptcy
The phrase "obstruction of justice" encompasses many actions that may impede the integrity of legal proceedings, investigations, or the proper administration of justice.
At the federal level, incidents of obstruction are prosecuted aggressively and punished severely. Under 18 U.S.C. 1519, it is a crime to destroy, change, or falsify records in conjunction with a federal investigation or a bankruptcy proceeding.
This federal law refers to destroying, altering, or falsifying records. It is relevant when a company or individual is under federal investigation or during a bankruptcy.
The language of Section 1519 is much more specific than mere "destruction, alteration, or falsification." Hiding evidence, making fake entries in documents and records, or mutilating them somehow is also illegal.
This law refers to records and documents as evidence and tangible objects. However, the number of objects that can be evidence in this type of case is limited.
This law also includes the words "knowingly," "intent," and "about or contemplation of." Suppose a CEO destroys a flash drive or tells someone else to destroy it because he knows it contains incriminating information related to a federal investigation. In that case, it violates Section 1519.
It may also be a violation without investigation, but the CEO knows that one may soon be. However, removing old records without knowing they may be relevant to an investigation could be different. If you are charged and convicted of this crime, you could face up to 20 years in federal prison if convicted.
What Does the Law Say?
The full text of 18 U.S. Code 1519 destruction, alteration, or falsification of records in Federal investigations and bankruptcy says, "Whoever knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to impede, obstruct, or influence the investigation or proper administration of any matter within the jurisdiction of any department or agency of the United States or any case filed under title 11, or concerning or contemplation of any such matter or case, shall be fined under this title, imprisoned not more than 20 years, or both."
18 U.S.C. 1519, enacted as part of the Sarbanes Oxley Act of 2002, was designed to combat corporate fraud and protect the integrity of federal investigations and bankruptcy proceedings.
The statute explicitly criminalizes acts of knowingly altering, destroying, mutilating, concealing, covering up, falsifying, or making false entries in any record, document, or tangible object with the intent to impede, obstruct, or influence the investigation or proper administration of any matter within the jurisdiction of any department or agency of the United States or any bankruptcy case.
This law covers various actions and applies to multiple contexts, from corporate documents to personal records, provided the intent is to obstruct a federal investigation or bankruptcy proceeding.
What Factors Must Be Proven to Convict?
To secure a conviction under 18 U.S.C. 1519, the prosecution must prove several critical elements of the crime beyond a reasonable doubt. Specifically:
- You committed an act that destroyed, mutilated, falsified, or concealed an object, record, or document considered material evidence.
- Your action was connected either to a matter within the jurisdiction of a federal department or agency or to a bankruptcy case.
- You did this action knowingly, meaning you were aware of the actions you were taking.
- You did so with a specific intent to obstruct, impede, or influence a federal investigation or bankruptcy proceeding. General intent to destroy records is insufficient to obtain a conviction in this case.
Violating 18 U.S.C. 1519 is a serious offense accompanied by severe penalties. If you are convicted of this form of obstruction, you could face:
- Fines of up to $250,000 and
- A prison sentence of up to 20 years.
What Are Some Examples?
EXAMPLE 1: George is a corporate executive who discovers that his company is under investigation by the Securities and Exchange Commission (SEC) for financial misconduct. Fearing personal liability, George orders the destruction of emails and financial documents that could incriminate them. By knowingly destroying these records intending to obstruct the SEC's investigation, George has violated 18 U.S.C. 1519 and may be criminally charged.
EXAMPLE 2: Dan is a business owner facing bankruptcy. He conceals financial records that show he transferred assets to relatives just before filing for bankruptcy. The intent is to hide these assets from the bankruptcy trustee and creditors. By doing so, Dan aims to obstruct the proper administration of the bankruptcy case, constituting a violation of 18 U.S.C. 1519.
What Are Related Federal Statutes?
18 U.S. Code Chapter 73 Obstruction of Justice has several federal laws that are related to 18 U.S. Code 1519 destruction, alteration, or falsification of records in Federal investigations and bankruptcy, such as the following:
- 18 U.S.C. 1501 - Assault on a process server.
- 18 U.S.C. 1502 - Resistance to extradition agent.
- 18 U.S.C. 1503 - Influencing or injuring an officer or juror generally
- 18 U.S.C. 1504 - Influencing juror by writing.
- 18 U.S.C. 1505 - Obstruction of proceedings before departments, agencies, and committees.
- 18 U.S.C. 1506 - Theft or alteration of record or process; false bail.
- 18 U.S.C. 1507 - Picketing or parading.
- 18 U.S.C. 1508 - Recording, listening to, or observing grand or petit jury proceedings while deliberating or voting.
- 18 U.S.C. 1509 - Obstruction of court orders.
- 18 U.S.C. 1510 - Obstruction of criminal investigations.
- 18 U.S.C. 1511 - Obstruction of state or local law enforcement.
- 18 U.S.C. 1512 - Tampering with a witness, victim, or an informant.
- 18 U.S.C. 1513 - Retaliating against a witness, victim, or an informant.
- 18 U.S.C. 1514 - Civil action to restrain harassment of a victim or witness.
- 18 U.S.C. 1514A - Civil action to protect against retaliation in fraud cases.
- 18 U.S.C. 1515 - Definitions for certain provisions; general provision.
- 18 U.S.C. 1516 - Obstruction of federal audit.
- 18 U.S.C. 1517 - Obstructing examination of financial institution.
- 18 U.S.C. 1518 - Obstruction of health care criminal investigations.
- 18 U.S.C. 1520 - Destruction of corporate audit records.
- 18 U.S.C. 1521 - Retaliating against a Federal judge or law enforcement officer by false claim or slander of title.
What are the Common Defenses?
If you're facing criminal charges under 18 U.S.C. 1519 for destroying or altering relevant records or items, an experienced federal criminal defense attorney can employ several strategies to counter the charges. These include, but are not limited to:
- Lack of Knowledge: The defense may argue that you did not knowingly destroy, alter, or falsify material records or items. For example, you were unaware of their relevance to a federal investigation.
- Absence of Intent: Another potential defense is demonstrating a lack of intent to obstruct justice. You may avoid conviction if you show that your actions were not aimed at impeding a federal investigation or bankruptcy proceeding. For instance, if records were destroyed as part of a routine document disposal process rather than with the intent to obstruct, this defense could be viable.
- Relevance to Federal Investigation: The defense might argue that the records in question were unrelated to a federal investigation or bankruptcy case. If the prosecution cannot establish a clear link between the destroyed records and a federal matter, the charges under 18 U.S.C. 1519 might not stand.
- Coercion or Duress: If you were coerced or forced to destroy, alter, or falsify records, you might use this as a defense. Demonstrating that you acted under duress because of fear of imminent harm to yourself or your family could negate the element of intent necessary for a conviction.
Contact our federal criminal defense law firm for more information. Eisner Gorin LLP has offices in Los Angeles, California,
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