How Colorado business leaders should respond to government investigations

Most government investigations don’t start with flashing lights or handcuffs. In Colorado’s fast-growing business environment — where construction, energy, healthcare and technology companies frequently interact with federal regulators — investigations often begin quietly. They start quietly with a subpoena, a call from an agent, a compliance hotline report or a civil case that suddenly feels like it could turn criminal. By the time law enforcement shows up with a search warrant, you’re already behind the eight ball.

The companies and executives who navigate white-collar investigations successfully usually do one thing right: they involve experienced counsel early, before things go south.

The Moment You Should Call a White-Collar Attorney

Businesses operating in Colorado may face investigations not only from federal agencies, such as the Department of Justice, but also from state regulators, including the Colorado Attorney General’s Office and the Colorado Department of Regulatory Agencies.

Early decisions around what to say, what to produce, who speaks to investigators and whether to cooperate can define the trajectory of the entire matter. And sometimes, the most damaging mistakes happen in the first 24 hours. That is why you should never wait to “see how things play out.” Doing so is almost always a mistake.

There are a few situations where the answer is simple: call immediately.

• You receive a grand jury subpoena.
• Agents appear with a search warrant or ask to interview employees.
• You receive a civil investigative demand from a regulatory agency.
• You learn of internal conduct that could trigger criminal scrutiny.
• You’re involved in civil litigation that overlaps with potential criminal exposure.

If Law Enforcement Shows Up

Preparation before a crisis matters. Written policies for search warrants and subpoena responses are not bureaucratic exercises; they are risk-management tools. If government agents appear at your office or facility, respond calmly and tackle these fundamentals:

• Verify credentials and collect business cards.
• Determine whether they have a search warrant or an arrest warrant.
• Notify senior leadership and legal counsel immediately.
• Assign an employee to monitor the search.
• Do not interfere. Do not expand the scope of consent.
• Do not alter or destroy anything — ever.

Just as important: employees cannot be instructed not to speak with investigators. They have the right to speak, or not, and the right to consult their own counsel.

After a search, the work is just beginning. Privileged material may need to be protected, a litigation hold must be implemented, and business operations need to continue as usual. Additionally, internal and external messaging must be carefully handled.

Responding to ICE visits

For many businesses, a government investigation by U.S. Immigration and Customs Enforcement (ICE) is a “matter of when, not if.” As seen in major hubs like Minneapolis, Los Angeles and Chicago, there is a documented trend of surges in ICE activity that is likely to expand into other cities, particularly those in blue states.

In Colorado, where construction, hospitality, agriculture and manufacturing companies rely on large workforces, employers should be prepared for high-stakes worksite enforcement actions, which often begin with a notice of inspection (NOI), also known as an I-9 audit.

An NOI gives companies only three business days to produce all I-9 Employee Eligibility forms. It is a particularly short window that makes having a pre-established ‘audit-ready’ digital filing system a critical risk-management tool.

If ICE appears on your company’s doorstep, it is important to distinguish whether they have an administrative warrant or a judicial warrant. An administrative warrant (signed by an ICE official) does not grant the right to enter non-public areas of your facility without your explicit consent, whereas a judicial warrant (signed by a judge) does.

Subpoenas: More Than Paperwork

A subpoena isn’t just a document request. It is often the first clear signal that the government is building a case, which is why you should always put document retention policies in place before you need them.

If you receive a subpoena, you must:

• Route it to counsel immediately.
• Log deadlines.
• Preserve documents, both hard copy and electronic.
• Suspend routine document destruction.
• Protect privileged and proprietary materials.

The duty to preserve evidence can be triggered even before a subpoena arrives, even when you reasonably anticipate government action. Failing to preserve can turn a manageable situation into an obstruction exposure.

The Critical Question: What Is Your Status?

One of the first things experienced counsel will work with you on is determining your status. Are you a target? A subject? A witness?

Under the U.S. Department of Justice guidelines for individuals and businesses, prosecutors evaluate evidence, intent, cooperation and corporate culture to decide whether to bring charges. The difference between “target” and “witness” is significant.

You will need experienced legal counsel to help you decide whether to cooperate, provide a proffer, assert the Fifth Amendment, negotiate or begin preparing for trial. It’s impossible to make those decisions without understanding where you stand.

Government Cooperation Should Be Strategic, Not Automatic

Cooperation with the government can significantly impact outcomes. In some cases, early cooperation and remediation may lead to more favorable resolutions such as deferred prosecution agreements, non-prosecution agreements, civil settlements or global resolutions.

In others, cooperation may not be the right path. There is no one-size-fits-all answer. Consult with an attorney who can advise you based on exposure, evidence, regulatory environment and long-term business considerations.

When an Internal Investigation Is Necessary

Sometimes investigations do not stem from an external government party, but instead may come from an internal hotline complaint, a regulator inquiry or a media question.

In those cases, an internal investigation may be necessary to identify what actually happened, assess exposure, determine whether corrective action is required and decide whether to self-report.

In certain situations, hiring independent outside counsel is essential. These include situations in which executives are implicated, government funds are involved (common for Colorado companies working with federal agencies, research institutions, or defense contractors), the company is public or the alleged misconduct appears systemic. The worst outcome is learning about misconduct and then failing to respond appropriately.

An internal investigation is not just a document review. It requires a defined scope, witness interviews (with proper Upjohn warnings), forensic review where appropriate, and thoughtful reporting to leadership or the board.

When it concludes, hard decisions follow:

• Discipline or termination?
• Policy updates?
• Repayment of funds?
• Disclosure to regulators?

Most Colorado business executives don’t expect to need a white-collar lawyer. The best time to understand your exposure, review your compliance framework, and establish response protocols is before a government agency knocks at the door, a media inquiry or a call to the internal company hotline. The difference between a contained issue and a crisis often comes down to preparation, early judgment, and disciplined execution.

Henry Baskerville is an experienced trial lawyer who regularly represents clients in complex commercial litigation, white-collar criminal investigations, and government investigations in Colorado and nationwide.