Legal Question in Insurance Law in California

I work in the Insurance industry. We work with many different insurance companies both large and small. Since the ending of last year the IT personnel at my office have been tracking various individuals who seems to have accessed our server remotely as well as local workstations. Things must be serious as most of the computers in our small office have been seized and law enforcement along with the IT people have been rumaging through them looking for whatever proof they need. Bits and pieces of info have since come forward and it seems like whoever he or they are, have been starting auto insurance policies for either boogus vehicles or something to that nature because what Ive heard is that the officers using either latency software or some type of algorythm calculation generator, have determined that the photos have been altered in different ways or that messgaes have been either encoded or colored in (trying to mix in with the image) poking fun at individuals or overstating their computer prowress, some even seem to mention names of individuals involved or specific sur names. Why someone would want do that is BEYOND ME) Nonetheless, my question is this.....given that the nature of the crimes, computer hacking, illegal network penetration, insurance fraud and or defrauding a federal Entity ( Some of the carriers are Federally backed conglomerates) . The federal crime crosses both national and international boundaries (ex. Mapfre Insurance headquarters is centrally located in Spain) are federal charges sure to come or will they stick to more concrete state charges? I was thinking that they will shoot for federal charges with the aim of having their clients plea guilty to lesser charges. Am I correct? If found guiilty, what amount of incarceration would one expect to get? For example, some might not have any prior law enforcement contact whatsoever and this being a white collar crime, might probation be an option or due to the federal charge, will they seek the maximum allowed by state or federal law? The entire office is curious.

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