Does Indictment Mean Jail Time for Government Contractors?

 Does Indictment Mean Jail Time for Government ContractorMany government contractors ask the question, does indictment mean jail time. The answer is No, a federal indictment by a grand jury only starts the official process of determining whether you are guilty. A defendant may also resolve a case by pleading guilty and admitting to their crimes. But defendants who want to contest the charges can go to trial before a judge or a jury.

What is the difference between being charged or indicted by a federal grand jury? Being charged means the government has accused someone of a crime but hasn’t formally presented evidence to a grand jury. On the other hand, an indictment is a formal accusation by the grand jury that charges have been brought against a criminal defendant and that there is enough evidence for them to go to trial.

What Does an Indictment Mean for Federal Contractors?

An indictment can mean different things to government contractors. However, what stays the same is usually the process. During the initial investigation, the prosecution collects evidence – testimony and or documents to then decide whether or not to present this evidence before a grand jury. The question before a grand jury is whether the prosecution has presented sufficient evidence to formally charge the contractor (or other defendant) with a federal crime. The process of reviewing the evidence, some measure of deliberation, and a decision to formally charge the defendant is called “an indictment.”

A grand jury indictment is not a conviction. Instead, it is a formal accusation to the defendant. An indictment means that the defendant contractor has formal constitutional rights at the charging stage.

After the grand jury indictment is handed down, the prosecutor then has to prepare for trial. The general rule is that the indictment cannot be evidence to somehow translate into a guilty verdict.

During the federal indictment process, federal judges oversee the indictment process if requested by the prosecution. Interestingly, the judge is usually not present during a grand jury indictment hearing.  The jurors are also permitted to ask the witness questions.

An indictment also means that the panel of jury members does not hear testimony from the defendant’s contractor or the defense’s side.

What is the next step after being indicted as a government contractor?

If a government contractor is indicted, they may face several penalties, including fines or contractor jail time. Depending on the severity of the crime, the defendant could also be stripped of their security clearance and have their contract terminated or debarred.  The next step should be to find an experienced government contractor defense lawyer who understands the underlying crime. Not all criminal defense attorneys understand federal procurement law. Without this experience on your team, you could be heading to a sure conviction. 

What rights do you have as a government contractor when formally indicted?

When formally indicted as a government contractor, you have the same statutory and constitutional rights as any other criminal defendant. This includes a right to remain silent, the right to an attorney, and a right to a fair trial. Additionally, government contractors have certain protections that may be available depending on whether or not they are employed directly by the federal government or as a subcontractor. 
How can cooperation with federal prosecutors help you if you have evidence of guilt?
It is important to note that, depending on the situation, cooperation with federal prosecutors and a government contract can actually be beneficial. In some cases, if you can enter into a proffer or show some value in cooperating with the federal government, then you could potentially enter into a plea deal that can minimize contractor jail time.
Additionally, being forthcoming and cooperative during a government investigation can demonstrate good faith to federal investigators and show a willingness to take responsibility for wrongdoings. Ultimately, cooperation with federal prosecutors can help you in some cases, but it may not always be beneficial. This is where having the advice of a criminal defense attorney who also has experience in government contracting can be beneficial.

Constitutional Defense in Federal Fraud Cases – Usually Overlooked – Our Lawyers Protect Your Rights

When the government investigates fraud allegations—whether in government contracts, healthcare billing, or procurement fraud—they often push legal boundaries to build their case. Many defense attorneys focus only on the criminal or regulatory aspects of these charges. However, constitutional violations are often the key to dismantling the prosecution’s case, and this is where our firm stands apart.

Federal agencies frequently obtain evidence through search warrants, subpoenas, and surveillance, but these methods are not always legally sound. If investigators exceed the scope of a warrant, seize protected business records, or conduct unlawful searches and seizures, they may have violated your Fourth Amendment rights. Evidence obtained improperly can often be challenged and suppressed, significantly weakening the case against you.

Unlike other firms that only understand the criminal and regulatory aspects of fraud cases, our team includes constitutional lawyers who analyze every detail of how evidence was gathered. We scrutinize whether the government relied on unlawful wiretaps, forced statements, or overbroad document seizures—critical mistakes that could lead to case dismissals or reduced charges.

If you are being investigated or charged with fraud, do not assume the government followed the law in building its case. A single constitutional violation could change the outcome of your case. Contact our firm today to discuss how we can protect your rights and your future. Speak to Theodore Watson. Call 1.866.601.5518.

In sum, getting a criminal indictment does not always mean jail time.
If you are a government contractor and need legal counsel as to whether your specific situation puts you on the path of getting contractor jail time, hire our government contractor criminal defense attorneys. Call us at 1.866.601.5518.