Money laundering is the act of “disguising financial assets so they can be used without detection of the illegal activity that produced them.” This can include complex financial transactions, and international dealings that involve multiple government entities.
McKenzie Scott PC: Money Laundering Defense Attorneys In California
McKenzie Scott PC: Fighting for the little guy.
Money laundering – concealing the origin of one’s finances through transactions meant to make it appear legally obtained – is a serious crime in California. If you have been accused of money laundering, you need experienced representation to protect your assets-and your reputation.
At McKenzie Scott PC, our experienced California money laundering defense attorneys stand ready to fight your charges at both the state and the federal levels.
For a free consultation with a California money laundering lawyer, call (619) 794-0451.
What Is Money Laundering?
Money laundering is concealing the origin of illegally obtained funds to make them appear legitimately obtained. This includes money obtained through drug trafficking, extortion, robbery, prostitution, and other activities prohibited through federal law. Money laundering is considered a white-collar crime, like tax fraud or healthcare services fraud. Most money laundering cases are considered federal criminal offenses; convictions may include large fines and long prison sentences.
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Even if you are a first-time offender with no criminal record, it is important to take money laundering accusations seriously. You can be charged for money laundering as a stand-alone crime, or as an inchoate offense alongside other criminal charges. Money laundering charges are rarely straightforward, and often require extensive legal defense proceedings.
According to CA Penal Code § 186.10 (2023), money laundering contains the following elements:
- The defendant must have completed the transaction(s) through a financial institution;
- The total amount of the transaction(s) must be more than $5,000 in a seven-day period (OR $25,000+ within 30 days); and
- The transaction(s) must have been made with the “intent to promote criminal activity,” i.e., the defendant must have known that financial deposits were from criminal activity.
Under California state law, money laundering is either a misdemeanor or a felony, depending on the seriousness of the crime. Anti-money laundering laws have been established; small and large businesses alike are expected to abide by these rules. Failure to comply may be considered a federal offense.
Money Laundering Penalties In California
Money laundering activities are considered federal criminal offenses and carry severe penalties. The Money Laundering Control Act (1986) established a strict code of conduct for law enforcement; in pursuit of evidence to confirm a federal crime, federal agents may be authorized to request bank statements, subpoena employees, and even wiretap your phone under certain circumstances.
As a federal criminal offense, money laundering comes with significant penalties. The maximum federal penalties for laundering is 20 years in prison, with fines of up to $500,000,000 OR twice the amount that was laundered, whichever is greater. California Penal Code stipulates other specifics that may come into play with your case.
The maximum federal penalties for money laundering is 20 years in prison, and fines of $500,000,000 or twice the amount of money laundered, whichever is more.
Additional punishments may include forfeiture of personal property, civil penalties, restitution, and mandatory compliance with a federal supervision program following imprisonment. Your federal criminal defense lawyer will be able to explain the extent of the potential penalties as they apply to your case.
Contact A California Money Laundering Defense Lawyer: (619) 794-0451.
Common Types of Money Laundering
Money laundering methods involve various stages and techniques to obscure the origins of the money, making it difficult for authorities to trace the illicit funds back to their source. Money laundering can vary widely from case to case, but some of the most common types are:
- Smurfing (Structuring): Perhaps the most common form of money laundering. Smurfing involves breaking down large amounts of money into smaller, less suspicious amounts that are then deposited or withdrawn.
- Third-Party Money Launderers: Hiring individuals or organizations that specialize in moving and laundering money on behalf of criminals. One needn’t be the individual completing the transaction to be implicated in a money laundering scheme.
- Trade-Based Laundering: Disguising illicit funds through trade transactions, often by manipulating invoices or misrepresenting the quantity or quality of goods. It exploits international trade complexities, making it challenging for authorities to detect and prevent illegal financial flows.
- Cash-Intensive Businesses: Using businesses that handle large volumes of cash (like restaurants, bars, or casinos) to mix illicit money with legitimate earnings. Businesses that customarily include tips may also be implicated in this type of scheme.
- Shell Companies and Trusts: Setting up companies that exist only on paper to disguise the ownership and control of funds. Also a common scheme in avoiding capital gains tax and other expenses related to the transfer of intergenerational wealth.
- Real Estate Laundering: Purchasing real estate with illicit funds, sometimes at inflated prices, then selling the property to legitimize the money. Real estate schemes often involve several people at different stages of the transaction.
- Casino Laundering: Buying chips with dirty money, gambling a bit, then cashing out to receive “clean” money. Using casinos to launder money by purchasing chips with illicit funds, gambling a small amount, and then cashing out the remaining chips for a check from the casino, making it appear as legitimate gambling winnings
- Bank Capture: Gaining control of a financial institution to facilitate the movement and concealment of illicit funds. This high-level form of money laundering can leave hundreds of millions of dollars-or more-unaccounted for.
- Foreign Investment/Offshore Accounts: Moving illicit funds into foreign investments, making it harder to trace. Most countries, including the United States, have contingency plans for work with foreign entities to trace the movement of money and determine its source.
- Cryptocurrency Laundering: Using digital currencies to move and conceal funds: a relatively uninvolved task because of the anonymity and decentralized nature of cryptocurrencies. The use of cryptocurrency must follow the same rules as other forms of currency.
- Hawala and Other Informal Value Transfer Systems: Transferring money without the physical movement of currency, often through trust-based networks and personal connections. Widely used in regions with limited access to formal banking services, hawala prevents a potential risk for illicit activities.
Speak to a Money Laundering Lawyer Now: (619) 794-0451.
Money Laundering: Frequently Asked Questions
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Call McKenzie Scott, Money Laundering and Embezzlement Defense Lawyer: (619) 794-0451.
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