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On February 13, 1934, FBI Director J. Edgar Hoover received a complaint from a Hearst executive that Crosby had been followed home and had received threats from unidentified sources. Hoover ordered an investigation, entitled "Percy Crosby-suspected kidnap attempt", and Crosby's 4 year old son, Percy, Jr.("Skippy") was fingerprinted. Years after Crosby's death, research disclosed that this incident was the same date that the decision for Skippy, Inc. in the U.S. Patent Office became final and was not appealed by Rosefield Packing Co. Rosefield's Chicago counsel stated in a February 3, 1934 letter that Crosby would be kept under "surveillance". Crosby was reported by the FBI to be "jittery". He hired a bodyguard, and cancelled his plans to attend an exhibit of his art in London, Paris and Rome, which won rave reviews. When the Art Dealers Association awarded him a gold medal, he declined to accept it as a matter of principle, saying that he created his serious art for aesthetic purposes. (In 1932 Percy Crosby was awarded the silver medal at the Olympic Games in Los Angeles for his sport drawing, "Jack knife". The Olympics in the early years did not have the commercial sponsors we see today and international artists were invited to compete).

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