Practical Guide to White-Collar Criminal Defense for Business Owners and Executives

Introduction

If you are a business owner, board member, or executive, and the words “criminal investigation” have suddenly entered your vocabulary, your primary concern is likely the protection of your assets, your reputation, and the continuity of your business. As a criminal defense attorney specialized in Economic and Corporate Criminal Law, I have spent more than two decades assisting national and international companies —many of them based in Barcelona or other Spanish cities— in proceedings involving fraud, money laundering, tax crimes, and corruption. This guide distills that practical knowledge to offer you a clear and understandable roadmap.

What Does Economic and Corporate Criminal Law Cover?

Economic Criminal Law encompasses the set of regulations that penalize unlawful conduct committed in commercial or financial contexts. It affects both legal entities (companies) and their managers and directors, who may be held criminally liable if implicated in the wrongdoing or for failing to exercise control (compliance deficit).

Key business note: In Spain, the 2010 reform of the Penal Code (and subsequent updates) introduced the criminal liability of legal entities. This requires demonstrating effective prevention protocols and acting swiftly if the company is investigated. This regulation particularly affects companies with operations or headquarters in Spain, such as those based in Barcelona, a hub of business activity and international investment.

Most Common Financial and Corporate Offenses

^*Approximate ranges depending on the amount and specific circumstances.

Phases of a White-Collar Criminal Procedure

Internal Investigation (Pre-Procedural Phase)

Before a judge or the Prosecutor’s Office gets involved, the first line of defense takes place inside the company. A well-structured internal investigation helps identify responsibilities, preserve evidence, and most importantly, prepare the defense narrative before authorities do. It usually starts with an investigation order signed by the management body and coordinated by external legal counsel to protect attorney-client privilege. Typical measures include:

• Forensic auditing of accounting and banking systems to trace suspicious fund movements.
• Review of corporate emails and messaging systems via e-discovery; ensuring the digital chain of custody is essential for the evidence to be valid.
• Structured internal interviews with key employees following the Upjohn protocol, that is, warning them that the company lawyer does not represent them personally.
• Compliance program assessment: control failures are mapped, immediate recommendations are issued, and a remediation plan is designed, which can be decisive in reducing or even eliminating the company’s criminal liability.

These types of internal investigations are increasingly common in large and mid-sized companies based in Barcelona and other Spanish economic centers, where financial operations face greater judicial scrutiny.

Investigative Proceedings by Prosecutor or Police

Once the investigation enters the public domain, the company may receive documentary requests, search and seizure warrants, or, in serious cases, executive arrests. The priorities at this stage are twofold: protect the rights of the accused and prevent company paralysis. Key actions include:

• Rapid response to requests: provide only the requested documentation and safeguard information protected by legal privilege or banking confidentiality.
• Legal counsel during searches: oversee forensic copies of servers, demand temporal and thematic limitations, and document any police overreach.
• Reputation crisis management: prepare a factual statement for employees, clients, and media, avoiding any value judgments that could compromise the legal strategy.

Judicial Investigation

The investigating judge focuses on determining whether there is sufficient evidence to proceed to trial. At this stage, precautionary measures—both financial and personal—may be imposed, potentially affecting the company’s operations for years. The defense should:

• Challenge invalid investigative actions (e.g., searches without justification or disproportionate wiretaps).
• Request independent expert reports (accounting, tax, technical) to counter the conclusions of the police or tax agency.
• Summon witnesses and co-defendants to disprove the subjective element of the crime (intent) or to attribute the conduct to a third party.
• Negotiate the withdrawal or reduction of bail and asset freezes by demonstrating solvency and willingness to cooperate, allowing continued business operations.

Trial Phase

This is the public confrontation of evidence before a panel or single judge. Much of the outcome is decided beforehand: preparing the testimony of defendants and expert witnesses is essential to present a coherent and credible version. During the trial:

• Present the theory of the case through an economic-financial narrative that the court can follow without losing technical nuance.
• Challenge the prosecution's evidence by pointing out gaps in the chain of custody, calculation errors, or biased interpretations by the official expert.
• Explore alternative options: plea deals with one-third sentence reductions, acceptance of mitigating factors (confession, damage reparation, undue delays), or suspended sentences for first-time executives.

Enforcement and Appeals

Once a verdict is issued, a new phase begins: enforcement may involve imprisonment, multimillion-euro fines, and company deregistration. However, there are ways to mitigate the impact:

• Appeals to the Provincial Court or Supreme Court when there are factual or legal errors, violations of the presumption of innocence, or lack of judicial reasoning.
• Suspension incidents: if the prison sentence is under two years and damages have been repaired, it’s possible to request a suspension of imprisonment.
• Restorative compliance strategies: installment payment plans for fines, enhanced compliance programs supervised by the court, or creditor agreements to allow business recovery.

At all stages, coordination between criminal defense attorneys, financial experts, and the executive team is crucial to avoid company collapse and manage the crisis effectively.

Effective Defense Strategies

• Early Intervention
Expert criminal advice from the outset makes a difference. The first call to a lawyer should happen as soon as a warning sign appears—a letter from the Tax Agency, a request for bank information, or a rumor of an internal complaint—even before a formal summons. Early intervention allows you to:

• Prevent data leaks that could distort the investigation.
• Advise executives on what to say (and what not to say) during police interviews or administrative inspections.
• Activate legal hold protocols to preserve key emails and documents, preventing unintentional destruction of evidence.
• Seek early dismissal through well-reasoned technical briefs demonstrating the absence of intent or financial harm.

In cities like Barcelona, where many companies participate in public tenders or handle international investments, having a robust compliance program is a practical requirement for legal security.

• Compliance as a Shield
A well-implemented criminal compliance program can be the best insurance policy against corporate and managerial liability. For a judge to consider it “effective,” the program must:

• Include a realistic risk map, with special focus on international operations, billing, and public contracting.
• Be overseen by an independent body (compliance officer or committee) with its own budget and direct access to the board.
• Provide anonymous whistleblower channels, periodic training, and an internal disciplinary regime.
• Show document traceability: minutes, courses, knowledge tests, and disciplinary records.

During the criminal process, the compliance expert may testify in court to demonstrate proper program implementation and secure exemption—or at least a significant reduction—of the company’s sentence.

• Economic-Accounting Expertise
Financial crimes are largely decided on spreadsheets. Having forensic auditors and specialized economists enables you to:

• Refute tax assessments based on incorrect tax bases.
• Dismantle money laundering charges by demonstrating lawful fund origins (bank traceability, SWIFT transfer reports, ultimate beneficiary analysis).
• Accurately quantify the alleged economic damage—essential for both the criminal classification and damage reparation negotiations.
• Challenge the methodology of the official report: arbitrary discount rates, unsupported projections, or biased statistical analysis.

An independent, well-structured expert report not only creates reasonable doubt but also offers the court a technically sound alternative.

• Negotiation with the Prosecutor
Plea bargaining in Spain is useful but not universal. Before accepting it, one must consider:

• Procedural timing: early deals (before trial) can reduce sentences by up to one-third; deals during trial offer little leeway.
• Available mitigating factors: reimbursement of financial harm, confession, procedural delays, or incomplete offenses.
• Collateral consequences: regulatory sanctions, “good leaver” clauses in executive contracts, and brand reputation.
• Impact on the company: suspension of activity, bans on public contracting, or loss of subsidies.

Sometimes, it is more strategic to exhaust the investigation phase and present a compelling expert report that leads to case dismissal rather than settling for a reduced conviction.

• Protection of Corporate Reputation
The media trial starts before the judicial one. Professional communication management is an essential part of the defense:

• Drafting a brief and factual holding statement, without admitting guilt or attacking the prosecution.
• Appointing a single spokesperson to avoid contradictory messages and rumors that could affect stock value or client confidence.
• Coordinating with the compliance and HR teams to inform key employees and contain leaks.
• Monitoring social media and specialized press to detect inaccurate news and request corrections immediately.

Protecting the company's reputation is not cosmetic: it influences the court's assessment of the defendant’s “community ties,” creditors’ willingness to refinance debt, and the company’s commercial survival after the criminal process ends.

Illustrative Cases (Based on Real Experience)

Case A: International Tax Fraud
A Barcelona-based machinery export company received audit reports that led to criminal charges for invoicing through a trading firm in Luxembourg. Our intervention:

1. Flash audit to reconstruct bank transactions.
2. Submission of an expert opinion confirming the substance of the operation (warehouse, staff, assumed risks).
3. Negotiation with the Anti-Fraud Office and partial repayment with surcharge.

Outcome: Provisional dismissal for administrators; the tax procedure remained open.

Case B: Alleged Money Laundering in a Latin American Subsidiary
The CFO was arrested after circular transfers were detected. We argued the funds originated from an intragroup corporate loan:

• Presented historical due diligence and shareholder agreements.
• Demonstrated traceability through SWIFT reports.

Outcome: Full dismissal and release of frozen accounts within 48 hours.

Case C: Disloyal Administration in a Tech Startup
A CEO was accused by minority shareholders of using company funds for personal projects.

• We commissioned a tech expert to assess the value of created intangibles (software and patents) and their accounting impact.
• Proposed criminal mediation and a share buyback agreement.

Outcome: Withdrawal of private prosecution and court approval of the agreement.

Frequently Asked Questions

When should I hire a white-collar criminal lawyer?
As soon as you receive a tax request, a notice from the National Court, or detect an internal investigation. Early response can prevent formal charges.

Is it possible to reach a deal with the Prosecutor?
Yes, plea bargaining is common in tax fraud and accounting offenses. It allows sentence reduction and reputational protection, provided strong mitigating factors exist.

How can I protect my personal assets?
Through preventive strategies: asset separation between company and owner, D&O insurance, securing collateral before judicial intervention, and prudent tax planning.

Conclusion
In Economic and Corporate Criminal Law procedures, there is no second chance to react. The combination of criminal risk, reputational harm, and financial exposure demands a strategic, technical, and human defense from the very first moment.

Contact us and place your case in the hands of a team that knows the terrain: we offer expert white-collar criminal defense in Barcelona and throughout Spain, turning criminal uncertainty into clear and effective legal solutions.