I think you might be better off asking this question to a tax attorney or accountant.
My response to your question is a generic response and should not be construed as controlling to your case. I can not effectively advise about your case without knowing all the facts. Additionally, my response does not create an attorney-client relationship. You can contact my office to schedule an appointment if you would like to have me represent you.
It all depends upon the facts of the case. Generally, legal fees to defend personal legal actions are non-deductible. However, if the crime had anything to do with your business, then you may have a position to take the deduction as a misc. itemized deduction on Schedule A of your tax return. Even if you do, you may get little or no benefit due to the Alternative Minimum Tax.
Generally, criminal case are 100% personal and have no affiliation with your business. But, there are exceptions, such as crimes in the workplace.
Marty Davidoff, firstname.lastname@example.org, 732-274-1600. This answer is provided for general information only. You should seek advice from an attorney or tax professional.