Money laundering is act of taking funds that were obtained illegally and making them appear to be legitimate.
This typically includes disguising the source of the funds, changing the form of the funds (say, from dollars to Bitcoin), and/or moving the funds to a different location. Money laundering is a serious crime that can result in severe penalties, including lengthy prison sentences, hefty fines, and forfeiture of assets.
As an attorney with decades of experience in federal defense, Los Angeles attorney Robert M. Helfend has helped clients facing money laundering charges to navigate the complex legal system and obtain the best possible outcome in their case. Call today for your free case review – 800-834-6434.
Overview of Money Laundering Crimes in the United States
Money laundering is a federal crime. It is defined in two main statutes: 18 U.S.C. § 1956 and 18 U.S.C. § 1957. These statutes prohibit various activities related to money laundering, such as:
- Conducting financial transactions with proceeds from illegal activity
- Concealing or disguising the nature, source, ownership, or control of illegal proceeds
- Transporting, transmitting, or transferring funds derived from illegal activity
- Engaging in transactions with the intent to evade reporting requirements
Money laundering can be committed in a wide range of industries, including banking, real estate, healthcare and international trade. Some common forms of money laundering include structuring transactions to avoid reporting requirements, and laundering money using offshore accounts to hide funds, and creating shell companies to transfer money.
18 U.S.C. § 1956, 1957 – Money Laundering
18 U.S.C. § 1956 and 18 U.S.C. § 1957 are the two main statutes that govern federal law regarding money laundering in the United States. Section 1956 prohibits several types of money laundering, including:
- Knowing or intentional conduct to conceal the source, nature, or ownership of proceeds from illegal activity
- Conducting financial transactions with proceeds from illegal activity
- Conducting transactions designed to evade reporting requirements
- Transporting, transmitting, or transferring proceeds from illegal activity
The penalties for violating Section 1956 can be severe. A conviction can result in up to 20 years in prison, as well as fines of up to $500,000 or twice the value of the property involved in the offense, whichever is greater. If the offense involves international transactions, the penalty can be increased to 30 years in prison and a fine of up to $1 million or twice the value of the property involved in financial transaction.
Section 1957 prohibits a narrower range of money laundering activities, specifically, “knowingly engaging or attempting to engage in a monetary transaction in criminally derived property of a value greater than $10,000.” The penalties for violating Section 1957 can also be severe, including up to 10 years in federal prison, and fines of up to $250,000 or twice the value of the property involved in the offense.
Penalties for a Federal Money Laundering Conviction
If you are convicted of the federal crimes of money laundering, you can face significant penalties, including lengthy prison sentences, substantial fines, and forfeiture of assets.
In addition to the penalties outlined in the statutes themselves, you may also face additional consequences, such as loss of professional licenses, reputational damage and difficulty finding future employment.
One of the most significant penalties for a federal money laundering conviction is asset forfeiture. This means that the government can seize any property or assets that federal court say are connected to the money laundering offense, including cash, real estate, vehicles and other valuable items. Asset forfeiture can be particularly devastating for individuals who have built up significant wealth through illegal means.
Legal Defenses Against Federal Money Laundering Charges
If you are facing federal money laundering charges, it is important to seek the advice of an experienced federal criminal defense attorney. There are several legal defenses that may be available in a money laundering case, depending on the circumstances of the offense. Some common defenses include:
- Lack of intent – To be convicted of money laundering, the prosecution must prove that you had the specific intent to conceal the source or ownership of illegally obtained funds. If you can demonstrate that you did not have this intent, you may be able to avoid conviction.
- Lack of knowledge – Similarly, if you can show that you were unaware that the funds you were handling were the proceeds of illegal activity, you may be able to mount a successful defense. This defense may be particularly effective in cases where the alleged money laundering occurred through complex financial transactions or through multiple layers of intermediaries.
- Entrapment – If you were induced by law enforcement to commit the money laundering offense, you may be able to argue that you were entrapped. Entrapment occurs when law enforcement officers induce an individual to commit a crime that they would not have committed otherwise.
- Illegal search and seizure – If the evidence against you was obtained through an illegal search or seizure, your attorney may be able to have that evidence excluded from your trial. This could significantly weaken the prosecution’s case against you.
- Lack of evidence – Ultimately, the prosecution bears the burden of proving beyond a reasonable doubt that you committed the money laundering offense. If the evidence against you is weak or circumstantial, your attorney may be able to argue that the prosecution has not met this burden of proof.
Get Legal Help Today
Money laundering is a serious federal crime that can result in significant penalties, including lengthy prison sentences and substantial fines.
If you are facing money laundering charges, it is important to seek the advice of an experienced criminal defense attorney who can help you navigate the complex legal system and mount a strong defense against the charges. With the right legal representation, it may be possible to avoid a conviction or minimize the penalties and prison sentence you face.
As an attorney with decades of experience in criminal defense, Robert M. Helfend is committed to helping my clients achieve the best possible outcome in their case. If you are facing money laundering charges, call today for a free consultation at 800-834-6434.