Money laundering is a serious federal crime with potentially devastating consequences, including lengthy prison sentences and hefty fines. If you are under investigation or facing charges for money laundering, securing experienced legal representation immediately is crucial. A skilled Money Laundering Lawyer can be your strongest advocate, navigating the complexities of these cases and fighting to protect your rights and freedom. At internetlawyers.net, our dedicated team of federal criminal defense attorneys has a proven track record of successfully defending individuals and businesses in money laundering cases. We are committed to providing rigorous defense and personalized support every step of the way. If you are seeking experienced counsel, contact us today at (404) 658-9070 for a confidential consultation.
What Exactly is Money Laundering?
In essence, money laundering is disguising illegally obtained money to make it appear legitimate. It’s about cleaning “dirty money” so it can be used without raising suspicion about its criminal origins.
Money laundering is rarely a standalone charge. It typically accompanies other serious criminal offenses because it involves concealing the proceeds of those underlying crimes. This inherent connection makes money laundering cases exceptionally complex. The process often involves numerous, intricate financial transactions designed to obscure the source of funds, making detection and proof incredibly challenging for prosecutors. This complexity is why having a money laundering lawyer with a deep understanding of financial law and criminal defense is essential.
Federal Money Laundering Statutes: 18 U.S.C. §§ 1956 and 1957 Explained
Federal law primarily addresses money laundering through two key statutes: 18 U.S.C. §§ 1956 and 1957. Section 1956 targets various forms of money laundering related to “specified unlawful activities” (SUAs), which are essentially the predicate crimes that generate illicit funds. These forms include:
- Promotional Money Laundering: Using illegal proceeds to further the underlying criminal activity.
- Concealment Money Laundering: Transactions designed to hide the source, nature, or ownership of illegal proceeds.
- Structuring: Breaking up large transactions into smaller ones to evade reporting requirements.
- Tax Evasion Money Laundering: Using illegal proceeds in a manner intended to evade taxes.
Section 1957 is more specific, prohibiting the deposit or expenditure of over $10,000 in proceeds from a predicate offense.
The list of Specified Unlawful Activities (SUAs) is extensive, encompassing over 200 federal crimes, including those listed in 18 U.S.C. § 1956(c)(7) and incorporated from the Racketeer Influenced and Corrupt Organizations (RICO) Act, 18 U.S.C. § 1961(1). This broad scope means a wide range of criminal activities can trigger money laundering charges.
To convict someone under Section 1956, the prosecution must prove beyond a reasonable doubt that the individual conducted or attempted a financial transaction involving the proceeds of a predicate offense. Crucially, they must also prove the individual’s state of mind, meaning they acted with a specific intent, such as:
- Intent to promote further predicate offenses.
- Intent to evade taxes.
- Knowledge that the transaction was designed to conceal illegal proceeds.
- Knowledge that the transaction was structured to avoid anti-money laundering reporting rules.
In concealment money laundering cases, the prosecution doesn’t need to prove the defendant knew the specifics of the underlying crime. They only need to demonstrate that the defendant knew the funds were from some form of illegal activity and that the transaction was intended to conceal the illicit origin, location, source, ownership, or control of the funds. A money laundering lawyer is adept at scrutinizing the prosecution’s evidence regarding intent and knowledge, often forming the cornerstone of a robust defense.
While Section 1956 doesn’t criminalize simply spending or depositing illegal gains without an element of promotion, concealment, reporting avoidance, or tax evasion, Section 1957 steps in to prohibit spending or depositing criminal proceeds exceeding $10,000.
For a Section 1957 conviction, the government must prove:
- The individual knowingly engaged or attempted to engage in a monetary transaction.
- The transaction involved criminally derived property worth more than $10,000.
- The individual knew the funds were derived from criminal activity.
A “monetary transaction” under § 1957 is broadly defined as any deposit, withdrawal, or transfer of funds through a financial institution. The definition of “financial institution” is also expansive, encompassing not just banks and credit unions, but also:
- SEC-registered brokers and dealers
- Investment bankers and investment companies
- Issuers/cashiers of traveler’s checks, checks, or money orders
- Dealers in precious metals, stones, or jewels
- Pawn brokers
- Loan or finance companies
- Travel agencies
- Car dealerships (and other vehicle sellers, including aircraft and boats)
- Real estate closing and settlement professionals
- The United States Postal Service
- Casinos
This wide net cast by these statutes underscores the importance of consulting with a money laundering lawyer if you suspect you may be under investigation.
Image alt text: Scales of justice representing the legal system and the need for a money laundering lawyer.
Common Money Laundering Schemes: Placement, Layering, and Integration
Money laundering schemes are diverse, ranging from simple to incredibly complex. They typically involve three distinct phases:
- Placement: This initial stage involves introducing the illegal funds into the legitimate financial system. Common placement methods include depositing cash into bank accounts, often in small amounts to avoid suspicion (a technique sometimes called “smurfing”).
- Layering: The second phase focuses on separating the illicit funds from their illegal source through a series of complex financial transactions. This is designed to create distance and obscure the audit trail. Layering tactics often involve using multiple banks and accounts, including offshore accounts, and various financial instruments. The goal is to blend the dirty money with legitimate funds, making it nearly impossible to distinguish between the two and trace the funds back to their illegal origin. The more layers and transactions involved, the harder it becomes for law enforcement to follow the money.
- Integration: The final phase is reintegrating the laundered funds back into the legitimate economy. At this stage, the money appears clean and can be used freely. Integrated funds are often used to purchase assets like luxury goods, real estate, long-term investments, or to start new businesses, making the laundered money seem like the product of legitimate economic activity.
Understanding these phases is crucial, and a money laundering lawyer will meticulously analyze the alleged scheme to identify weaknesses in the prosecution’s case and build a strong defense.
Money Laundering’s Connection to White Collar Crimes
While often associated with drug trafficking, money laundering is increasingly prosecuted in conjunction with a wide array of federal economic and white-collar crimes. These include:
- Bribery
- Healthcare fraud
- Mortgage fraud
- Mail fraud
- Wire fraud
For example, in healthcare fraud cases involving illegal kickbacks, prosecutors frequently add money laundering charges if they believe the fraudulently obtained funds were concealed or used to purchase assets. We have seen numerous cases where individuals receiving illegal kickbacks formed shell companies or used the illicit funds to buy luxury vehicles, jewelry, and real estate, triggering money laundering charges.
Similarly, mail and wire fraud violations are predicate offenses for money laundering. Prosecutors often pursue money laundering charges in these cases, as a money laundering conviction can result in significantly longer sentences than the underlying fraud charges alone. A money laundering lawyer understands these overlapping charges and can develop a defense strategy that addresses all aspects of the prosecution’s case.
The Severe Penalties for Money Laundering Convictions
The penalties for money laundering are extremely harsh.
- 18 U.S.C. § 1956: Carries a maximum sentence of 20 years in prison and a fine of up to $500,000 per transaction.
- 18 U.S.C. § 1957: Carries a maximum sentence of 10 years in prison and a fine of the greater of $250,000 ($500,000 for organizations) or twice the amount of money involved in the transaction. Section 1957 also includes a civil penalty of up to the greater of $10,000 or the value of the laundered property.
It’s vital to remember that these penalties are in addition to any penalties associated with the underlying criminal offense. Facing money laundering charges means facing potentially decades in prison and crippling financial penalties. This underscores the critical need to engage a skilled money laundering lawyer to protect your future.
Building a Defense: The Expertise of a Money Laundering Lawyer
A strong defense in a money laundering case often hinges on demonstrating that the accused lacked the necessary intent to conceal the source of funds. Many individuals, particularly those in professions handling large sums of money (lawyers, accountants, bankers), can become unwittingly entangled in money laundering schemes. A skilled money laundering lawyer can investigate the facts and present evidence to show that a client was unaware of the illegal origins of the money, thereby negating the required intent for a conviction.
In some situations, duress may also serve as a defense if the individual concealed funds only under threat of harm. Furthermore, an experienced money laundering lawyer will meticulously examine the government’s evidence to identify weaknesses and argue that it is insufficient to prove all the elements of money laundering beyond a reasonable doubt.
Image alt text: Two experienced defense attorneys, representing the expertise of a money laundering lawyer.
FAQ: Do You Need a Money Laundering Lawyer?
Q: I am being investigated for money laundering. Do I need an attorney?
A: Absolutely. Money laundering is a highly complex and serious offense. Defending against these charges requires the specialized skills and experience of a money laundering lawyer who is well-versed in federal criminal law. Early intervention by experienced counsel is critical to protect your rights and develop the strongest possible defense. If you are under investigation, contacting a qualified attorney immediately is imperative.
Q: If I didn’t commit the underlying crime, can I still be charged with money laundering if I helped move the proceeds?
A: Yes. You do not need to have committed the underlying offense to be charged with money laundering. If you knowingly conceal or attempt to conceal funds you know are illegally obtained, and you understand the transaction is designed to hide the money’s source, you can face money laundering charges. However, as mentioned earlier, defenses like duress may be applicable. A money laundering lawyer can assess the specifics of your situation to determine your potential exposure and available defenses.
Q: Can I be charged with the underlying offense if I only participated in laundering the proceeds?
A: Yes, in some cases. You could be charged as a co-conspirator to the underlying offense, even if your only direct involvement was in laundering the proceeds. This is because by laundering the money, you may be seen as furthering the underlying criminal activity. Conspiracy charges can carry the same penalties as the substantive offense itself. For example, under 18 U.S.C. § 1349, conspiracy to commit mail fraud, wire fraud, healthcare fraud, securities fraud, or bank fraud carries the same penalties as committing the fraud itself. A money laundering lawyer can explain the potential for conspiracy charges and how to defend against them.
If you or a loved one is facing a money laundering investigation or charges, time is of the essence. Contact internetlawyers.net at (404) 658-9070 to speak with a dedicated money laundering lawyer today. We are ready to provide the skilled and aggressive defense you need.
