Welcome to Spodek Law Group. Our goal is to give you the reality of what happens when a CPA faces federal charges - not the sanitized version you find on most law firm websites, not the reassuring platitudes about "fighting for your rights," but the actual truth about the two-front war you are now fighting. Because that is exactly what this is. Two separate battles. Two different courtrooms. Two different standards. And losing either one destroys your career.
Most CPAs facing federal charges make a critical mistake right out of the gate. They focus entirely on the criminal case. Prison time. Fines. Restitution. These feel like the existential threats. And they are serious - federal prosecutors maintain a conviction rate hovering around 99.6 percent, which means if they charged you, they believe they will win. But here is the thing nobody tells you until it is too late: the state board of accountancy is opening its own file on you the moment those federal charges hit. And that proceeding operates under completely different rules.
You can win your federal case - charges dismissed, not guilty verdict, complete vindication in the eyes of the law - and still watch your CPA license get revoked. The same evidence. The same documents. The same testimony that failed to convince a jury beyond reasonable doubt can succeed at the board level using a standard called "preponderance of evidence." That means 51 percent certainty. Barely more likely than not. The evidence that couldnt put you in prison can still end your career.
Why Your CPA License Is Fighting for Its Life on Two Fronts
The federal criminal justice system and your state board of accountancy are not connected. They dont coordinate. They dont share outcomes. They dont wait for each other. What happens in federal court has no binding effect on what happens at the board level. This is the dual-track system that destroys CPAs who dont understand it.
Federal prosecutors need to prove your guilt beyond a reasonable doubt - the highest standard in American law. Your state board of accountancy needs only to prove its case by preponderance of evidence, sometimes clear and convincing evidence for severe sanctions. But even clear and convincing is nowhere near "beyond reasonable doubt." Its the difference between 51 percent certainty and 99 percent certainty. The gap between those two standards is were careers go to die.
Heres the kicker. Federal agencies share information with state boards automaticaly. The IRS. The DOJ. When they open a case on you, your state board finds out. The California Department of Justice, for example, notifies the Board of Accountancy within 30 days of a CPA conviction. But the board doesnt need to wait for conviction. They can investigate while your criminal case is pending. They can suspend your license administrativley while your still fighting federal charges.
Think about what that means. Your fighting for your freedom in federal court. Your also fighting for your license with the state board. These two fights require different strategies. What helps you in one arena might hurt you in the other. And most criminal defense lawyers - even excellent ones - dont understand administrative law well enough to protect you on both fronts.
The Types of Federal Charges CPAs Actually Face
Before we go further, lets talk about what federal charges against CPAs actualy look like in practice. This isnt theoretical. These are the charges that land on desks at Spodek Law Group on a regular basis.
Tax fraud and tax evasion are the obvious ones. A CPA helps a client hide income. Or a CPA files false returns for their own business. The IRS Criminal Investigation division gets involved. They build a case. They refer to the DOJ. Suddenly your looking at Title 26 charges with up to 3 years imprisonment per count.
Wire fraud is broader then most people realize. Any scheme to defraud that uses electronic communications - email, wire transfers, phone calls - can be charged under 18 U.S.C. §1343. A CPA who sends an email in furtherance of a fraudulent scheme has committed wire fraud. Each email, each wire transfer can be a seperate count. Twenty years per count.
Bank fraud applies when the scheme affects a financial institution. PPP loan fraud cases - which are still being prosecuted in 2025, five years after the pandemic - often include bank fraud charges becuase the loans went through banks. Thats 30 years per count.
Money laundering charges get added when the government can show that funds from unlawful activity were moved or processed. This adds significant sentencing exposure and triggers asset forfeiture provisions that can strip you of everything.
And then theres conspiracy. 18 U.S.C. §371. Conspiracy to commit any of the above crimes. This is the charge that catches CPAs who thought they were just "helping" a client without getting there own hands dirty. You dont have to commit the underlying crime. You just have to agree to help someone else commit it and take one step toward making it happen.
The common thread? Every single one of these charges also triggers automatic grounds for license revocation before the state board of accountancy. Win or lose in federal court, the board has independent authority to end your career.
The Evidence Standard That Changes Everything
Let me explain this in concrete terms becuase its the most important thing you will read today.
In federal court, the prosecutor must convince twelve jurors that you are guilty beyond a reasonable doubt. One holdout juror and you walk free. One person who says "I dont think they proved it" and there's no conviction. The burden is enormous. This is why federal prosecutors only bring cases they believe they will win - they dont want to damage their statistics.
At your state board of accountancy, there are no jurors. Theres a panel of board members, often other CPAs and public representatives, who decide your fate. The standard is preponderance of evidence - basicly, is it more likely then not that you did what they claim? If the scales tip even slightly against you, your license is gone.
Same documents. Same testimony. Same allegations. Different outcome.
This isnt hypothetical. Todd Spodek has seen this pattern repeat with clients who come in thinking the criminal case is the only fight. They hire the best federal criminal defense attorney they can find. They fight the charges. Sometimes they win. And then they discover the board proceeding was running in parallel the whole time, using the same evidence under a lower standard.
Winning your criminal case does not protect your license. This is the reality most CPAs dont understand until its too late.
What Happens the Moment Federal Charges Are Filed
The clock starts the second federal charges hit. Not when your convicted. Not when the case resolves. The moment charges are filed.
In most states, CPAs are required to self-report criminal charges to the board within 30 days. Not conviction - charges. You must report that you have been charged with a federal crime within a month of learning about it. Failure to report triggers its own disciplinary consequences, even if the underlying charges wouldnt have threatened your license.
So the board learns about your situation one of two ways. Either federal agencies share the information automaticaly through there information pipelines, or you report it yourself as required. Either way, the board now has a file open on you.
What happens next varies by state but follows a predictable pattern. Investigation begins. The board may issue document requests. They may want to interview you. And heres were the dual-track danger becomes acute: anything you say to the board can potentially be used in your federal case. Your criminal defense lawyer wants you to say nothing. Your license defense requires some engagement with the board. These strategies conflict.
Meanwhile, the board has authority to impose emergency or interim suspensions in some circumstances. They can effecively shut down your ability to practice while your federal case is still pending. You havent been convicted of anything. You havent had your day in court. But your already unable to work.
Federal charges filed → Board investigation opens → Possible interim suspension → Cannot practice → Cannot earn fees → Cannot pay legal defense → Financial pressure mounts → Plea deal becomes more attractive → Conviction → Automatic license revocation grounds
That cascade happens faster then most people expect.
How CPAs Actually Lose Their Licenses After Winning Criminal Cases
Consider a scenario that happens more often then you would think. A CPA is charged with wire fraud related to client transactions. The criminal case proceeds. The defense is strong. Maybe the evidence has holes. Maybe theres reasonable doubt about intent. The jury acquits. Not guilty. The CPA walks out of federal court vindicated.
Except the state board doesnt care about the jury verdict. They have there own proceeding. They look at the same evidence the jury saw and ask a different question: is it more likely then not that this CPA engaged in conduct reflecting adversely on their fitness to practice? The answer only needs to be 51 percent yes.
The evidence that failed to prove guilt beyond reasonable doubt succeeds at proving unfitness by preponderance. The license gets revoked. The CPA who won in federal court loses everything anyway.
This is the victory-loss paradox that catches CPAs completly off guard. They spend hundreds of thousands of dollars fighting federal charges. They win. And they still cant practice accounting because the board used a lower standard to reach the opposite conclusion.
Worse. Sometimes the board acts before the criminal case even finishes. They dont wait for the acquittal. They see the charges, investigate, and revoke based on there independent findings. The criminal case becomes irrelevant because the license is already gone.
The Federal Sentencing Guidelines CPAs Need to Understand
If you dont win your federal case - and remember, 99.6% of federal defendants are convicted - you need to understand what your facing. Federal sentencing guidelines are calculated using a base offense level adjusted by specific factors.
For fraud offenses under USSG §2B1.1, the loss amount drives everything. A fraud resulting in $10,000 loss produces one sentence. A fraud resulting in $1 million loss produces a dramaticaly longer sentence. The guidelines add specific offense characteristics that increase your exposure based on the number of victims, whether sophisticated means were used, whether you abused a position of trust, and numerous other factors.
Wire fraud under 18 U.S.C. §1343 carries up to 20 years imprisonment. If the offense affects a financial institution or involves disaster relief funds, the maximum jumps to 30 years. Tax fraud under Title 26 typically carries up to 3 years plus supervised release and fines up to $250,000. Bank fraud carries up to 30 years.
Real cases from 2024-2025 show the range of outcomes. A Mercer County accounting professor received 24 months for tax evasion and filing false returns. An Eastchester accountant got 4 months for a tax fraud scheme. A Kansas accountant who diverted $400,000 to a fictitious "Middle Finger Ranch" was sentenced after pleading guilty. An Atlanta CPA who promoted illegal tax shelters headed to federal prison. A Fayetteville ex-accountant who embezzled $5 million from businesses received a federal prison sentence.
Even "light" sentences destroy careers. Four months in federal prison still means a felony conviction. That felony conviction becomes automatic grounds for license revocation in most states. There is no such thing as a minor federal conviction when your a CPA.
Beyond the prison time, theres restitution. Courts order defendants to repay victims. In fraud cases, this can mean paying back every dollar the government claims was lost, plus interest. A $400,000 fraud means $400,000 in restitution. That debt doesnt go away in bankruptcy. It follows you forever.
Asset forfeiture adds another layer. The government can seize property connected to the offense. Bank accounts. Real estate. Vehicles. Investments. They dont have to wait for conviction in many cases - civil forfeiture lets them take your assets while the criminal case is pending. You might be fighting federal charges with frozen accounts and seized assets, unable to even pay your defense attorneys.
Supervised release comes after prison. Typically 1-5 years of federal supervision with conditions that restrict travel, require drug testing, mandate financial disclosure, and can prohibit contact with certain people or industries. Violating supervised release sends you back to prison.
And through all of this, the board proceeding continues in parallel. The board doesnt care about your restitution payments or supervised release conditions. They care about whether you remain fit to hold a CPA license. Every federal consequence makes that question harder to answer in your favor.
Why Your Criminal Defense Lawyer Might Not Be Enough
Heres an uncomfortable truth that most people dont want to hear. The criminal defense attorney you hire to fight your federal case probly doesnt understand administrative licensing law. These are completly different practice areas. Different rules. Different strategies. Different forums.
An excellent federal criminal defense lawyer knows how to challenge evidence, cross-examine government witnesses, negotiate with prosecutors, and try cases before federal juries. They understand the sentencing guidelines, plea bargaining dynamics, and appellate procedures. What they may not understand is how state boards of accountancy operate, what triggers license revocation, how to manage parallel proceedings without creating conflicts, and when statements made in one forum can damage you in the other.
At Spodek Law Group, we see this pattern regulary. Client hires outstanding criminal defense counsel. Criminal lawyer focuses exclusively on the federal case as they should. Nobody is watching the board proceeding. Or worse, the client says something to the board trying to be cooperative that gets used against them in the federal case. The two tracks werent coordinated. The client loses on both.
This isnt criticism of criminal defense lawyers. Its recognition that fighting federal charges while protecting a professional license requires coordinated strategy across different legal specialities. You need someone who understands both arenas and can ensure that what your doing in one doesnt destroy you in the other.
What a Coordinated Defense Strategy Looks Like
Fighting federal charges as a CPA requires what we call dual-track representation. This means simultaneous attention to your criminal defense and your license protection, with coordination to ensure the strategies dont conflict.
On the criminal side, the priorities are familiar. Challenge the governments evidence. Negotiate favorable terms if appropriate. Prepare for trial if necessary. Minimize sentencing exposure. Standard criminal defense, executed by attorneys who understand federal practice.
On the licensing side, the priorities are different. Manage the boards investigation. Respond appropriately to document requests without creating criminal liability. Prepare for administrative hearings. Preserve options for license reinstatement even if criminal conviction occurs. Standard license defense, executed by attorneys who understand board proceedings.
The coordination is were most people fail. What you tell the board can be subpoenaed in your federal case. What you argue in federal court can undermine your board defense. The strategies must be aligned.
Todd Spodek has handled cases were clients came to us after damaging themselves by trying to manage these proceedings seperately. They talked to the board investigator thinking cooperation would help - and those statements became evidence in there federal prosecution. They focused on an entrapment defense in federal court that made them look worse to the board. They won one proceeding and lost the other because nobody was watching the whole battlefield.
A coordinated defense means one team overseeing both tracks. Weekly strategy calls. Document review for implications in both forums. Testimony preparation that considers both audiences. Settlement discussions that account for license consequences. This is what comprehensive representation looks like for a CPA facing federal charges.
The Window Is Closing
If your a CPA facing federal charges, the window for effective defense is narrower then you think. The moment charges are filed - or even earlier, when you receive a target letter or grand jury subpoena - both clocks start running. Your criminal defense clock and your license defense clock.
Every day that passes without coordinated strategy is a day were mistakes can be made. Things said to investigators. Documents produced without proper review. Board inquiries answered without considering criminal implications. These early decisions shape everything that comes after.
The federal government has been building their case for months or years before you ever knew about it. They have all the time they need. You dont. The asymmetry is deliberate and devastating.
What your next move is matters more then you probably realize. The call to Spodek Law Group is the first step toward understanding exactly what your facing on both fronts. We can assess the federal charges and their strength. We can evaluate the license exposure and timeline. We can build a coordinated defense strategy that protects you in both arenas.
The phone number is 212-300-5196. The consultation is confidential. The time to call is now, before another day passes without proper coordination.
Because winning the federal case and losing your license is not victory. And losing both is catastrophic. You need representation that understands both fights. That is what we do.
