Criminal Defense Lawyers

Destruction Of Corporate Audit Records

Last Updated on: 14th March 2025, 08:21 pm

DESTRUCTION OF CORPORATE AUDIT RECORDS

THIS IS SERIOUS. If you are reading this, you might be worried about what happens when corporate audit records that were supposed to be preserved suddenly vanish. Let’s not sugarcoat anything: destroying audit documents that were relevant to investigations is a big deal, and the consequences can come at you hard. It’s that simple. When you think you can just shred evidence that was central to your company’s finances, you risk criminal charges—and that risk is not small.

At Spodek Law Group, we’ve seen how easily seemingly harmless decisions can land people in legal trouble. We are a nationwide federal defense law firm created by Todd Spodek, and we have experience handling cases for individuals who were under immense pressure. Right now, I’m going to be brutally honest about the serious pitfalls, show you what you must know, and call out any excuses that keep you from taking the necessary steps. If you think you can avoid accountability by playing it casual, you’re fooling yourself.

WHAT IS THE DESTRUCTION OF CORPORATE AUDIT RECORDS?

Destruction of corporate audit records that were created for financial reporting or compliance is the illegal act of altering, shredding, discarding, or hiding paperwork, digital files, or any other form of data used to document a company’s financial activities. Under various laws, including the Sarbanes-Oxley Act (https://www.sec.gov/about/laws/soa2002.pdf), there are strict regulations about what you must keep, how you must keep it, and for how long.

Here’s the consequence: If you fail to keep the records that were required by federal law, you can be charged with obstruction of justice, among other crimes. That charge alone can carry severe prison time and enormous fines. It’s not just a little mistake you can walk away from.

WHY SHOULD YOU CARE?

You should care because the Department of Justice (https://www.justice.gov) and the Securities and Exchange Commission (https://www.sec.gov) will not hesitate to bring charges against anyone who destroys records that were critical to an audit. These agencies have tremendous power, and they do not appreciate being stonewalled. If you think you can come up with cute explanations for missing files, be prepared to fail in front of prosecutors. They don’t tolerate excuses, and neither do we.

Here’s another consequence: A conviction for destroying audit records that were supposed to be preserved can ruin your career. Employers might refuse to hire you, lenders might reject your loan applications, and your entire reputation could collapse. Think about that the next time you consider “cleaning out” those pesky files.

THE LEGAL FRAMEWORK

In many cases, 18 U.S.C. § 1519 (the federal statute on destruction of records) applies to situations in which a person “knowingly alters, destroys, mutilates, conceals” or makes false entries in documents that were tied to a federal investigation. If you are found guilty, you can get up to 20 years in prison. That penalty is no joke.

There is also the Sarbanes-Oxley Act, which covers how publicly traded companies must maintain their audit records that were created during financial reviews. This law was passed to prevent shady record-keeping and reassure investors. Failure to comply can result in steep criminal penalties and civil lawsuits. That means you could be paying out of pocket for years, even after a jail sentence ends.

Let’s be blunt: Authorities do not care if you acted under pressure. If you willfully destroy materials that were part of a company’s official audit trail, you are asking for a federal indictment. That indictment can lead to public humiliation, massive legal fees, and time behind bars.

HOW WE DEFEND YOU

At Spodek Law Group, we are NYC Criminal Lawyers with over 50 years of combined experience handling complex federal cases. If you come to us because you’re under investigation for destroying corporate audit records that were relevant to a federal inquiry, we’ll call out the underlying mistakes and figure out how to fight back.

Here is our general strategy:

• Challenge the Evidence that was collected: We will check if the government acquired documents in a lawful way. Evidence that was illegally obtained may be thrown out. The consequence is that the prosecution’s case may become too weak to stand, which can shift leverage in your favor.
• Prove Lack of Intent: If you had no idea an investigation was ongoing, we might argue that you acted without criminal intent. That defense can reduce charges or even get the case dismissed.
• Establish Compliance Efforts: We show that you had policies in place for storing or discarding documents. If you can show you tried to do the right thing, it might reduce the severity of the penalties, or lead prosecutors to reconsider the case.
• Expose Flaws in The Prosecutor’s Timeline: Federal attorneys must prove you committed the act knowing it would impede an investigation. We look for any gaps in the timeline that was produced by the government, which can create doubt about your motives and knowledge.

Bottom line: If there is a route to fight for a dismissal or a reduced charge, we will find it. You owe it to yourself to avoid the nightmare of extended prison time and catastrophic fines.

POTENTIAL PENALTIES TO EXPECT

First consequence: Prison. A violation of 18 U.S.C. § 1519 can land you in federal prison for up to 20 years. That means you lose years of your life, and you come out with a felony record that complicates everything from employment to housing.

Second consequence: Monetary fines. These can easily hit six or seven figures, depending on your role in the destruction of records that were important to regulators. You could end up financially crippled, with no immediate way to bounce back.

Third consequence: Business fallout. When you have a criminal conviction on your name, your professional licenses can be revoked, and you will almost certainly lose trust from partners, clients, and employees.

If you think you can weather all those hits without destroying your future, you’re lying to yourself. This is why you must take immediate action and find top rated attorneys who can defend you.

LOOK AT YOUR OPTIONS

If you or a loved one is currently being questioned by federal authorities, it’s time to stop making excuses and step up with a real plan. Sitting back and hoping it goes away is a losing strategy. We are available 24/7 to provide a risk free consultation, so you can speak to our criminal attorneys who have the experience you need.

Think bigger and bolder: Maybe you’re an executive who was under pressure from the company’s leadership. Maybe you’re an accountant who was just following orders. Regardless of the situation, you have to take charge of your own defense. If you don’t, you’ll suffer the maximum legal and financial repercussions. That can ruin everything you worked for, and there are no second chances with federal prosecutions.

FREQUENTLY ASKED QUESTIONS (QUICK-REFERENCE TABLE)

CLOSING THOUGHTS

When corporate audit documents that were crucial to the federal government suddenly go “missing,” you risk severe criminal liabilities and the destruction of your entire future. If you think you can just quietly dispose of files, think again. We have seen too many individuals try to come up with creative excuses, only to get hammered by prosecutors. Federal law is strict on this issue, and your only real option is to prepare a serious defense strategy before it’s too late.

Spodek Law Group is here to help you. If you’ve been implicated in this type of offense, we recommend contacting us immediately for a consultation. We have top rated attorneys who know how to challenge evidence that was improperly gathered. We can show you how to argue against claims of intentional obstruction. Above all, we’ll call out any self-sabotaging thoughts you have and make sure you get the best possible outcome. That might mean reduced charges, a favorable plea agreement, or an outright dismissal of the case, but only if we act quickly.

Remember: This article is not legal advice. It does not create an attorney-client relationship. Every single legal situation is different, so you should consult a qualified attorney who understands the facts that are specific to your case. If you want top-tier representation, we can help you. We are a nationwide law firm that you can trust with your life. We have one mission: protect our clients with the best possible legal representation. Don’t hesitate to reach out for your risk free consultation, because hesitation is just another word for losing valuable time.