Money laundering is a serious crime that involves any deposit, withdrawal or transfer of illegally derived monies. The consequences of a federal money laundering charge can be severe and may include hundreds of thousands of dollars in fines, restitution, forfeiture and incarceration.

If you think you are under investigation or have been charged with federal money laundering, you need a qualified and experienced federal white-collar criminal defense attorney who can defend and protect you from the harshest consequences of federal charges.

What Is Money Laundering?

It is the crime of taking criminally derived proceeds and making them appear to have been obtained through legitimate means. Essentially, it is the process of disguising the source, amount and destination of the illegally obtained monies

Someone who engages in money laundering may filter illegally obtained money through another entity, an ostensibly legitimate business such as a restaurant, laundromat, store, salon, etc., or a shell corporation, to disguise and/or obscure the true nature of the transaction and the source of the funds. Other times, money is laundered through onshore and offshore bank accounts in small, difficult-to-track transactions, or by purchasing cryptocurrency with illegally obtained funds and then selling it. In addition, the monies are often “layered,” in that there are multiple complex financial transactions that move the money around to make it difficult to trace. The main purpose of money laundering is to make the money appear “clean” and earned through legitimate sources in order to make it difficult for federal law enforcement agencies to determine the true source of the proceeds.

Regardless of the method, it is a serious crime. Federal criminal investigators and attorneys aggressively investigate and prosecute suspected money laundering, and the penalties for a conviction are severe.

Money Laundering Statutes

18 U.S.C. Section 1956:

To prove a violation of § 1956(a)(1), the prosecutor must prove, either by direct or circumstantial evidence, that the defendant knew that the property involved was the proceeds of any felony under state or federal law. The prosecutor need not show that the defendant knew the specific crime from which the proceeds were derived; the prosecutor must prove only that the defendant knew that the property was illegally derived in some way. See § 1956(c)(1). The prosecutor must also prove that the defendant initiated or concluded, or participated in initiating or concluding, a financial transaction.

There are various specific types:

• Promotional money laundering: Using the proceeds of illegally derived proceeds to promote further criminal activities, such as reinvesting the proceeds in the criminal ventures that produced the monies;

• Concealment money laundering: Using the proceeds of illegally derived proceeds to conceal the true nature or source of the illegal monies;

• Reporting Evasion: Structuring the illegal money to bypass state or federal reporting requirements. This is typically done by breaking a larger sum of money into smaller sums to deposit in different accounts and institutions to avoid detection and reporting to the government;
• Tax Evasion: Laundering money to evade state and federal tax obligations.

18 U.S.C. Section 1957: Any person or business that engages in a monetary transaction in criminally derived property of a value larger that $10,000 can be prosecuted.

It is not uncommon for people to be under federal criminal investigation for money laundering in connection with other frauds such as mortgage fraud, cryptocurrency crimes, securities fraud, wire fraud, mail fraud, bank fraud, drug trafficking, etc.

What Can Trigger a Federal Investigation?

Federal investigators look for “red flags” that indicate potential money laundering. Common situations that can trigger a federal money laundering investigation include:

• Large Cash Transactions. Banks are required to report cash transactions exceeding $10,000. Repeated cash transactions just under this threshold can also raise suspicion.
• Transfers Between Multiple Accounts. Transferring money between accounts, especially offshore accounts, can trigger an investigation for money laundering.
• High-Value Transactions Without a Clear Source of Income. Someone who receives or transfers significant amounts of money without a clear source of income may be investigated for money laundering.
• Structuring or Smurfing. Making many small deposits instead of one large one to evade reporting requirements is called structuring or smurfing and can trigger an investigation.

What Is the Federal Money Laundering Penalty?

The specific penalties for a conviction vary based on the amount of money laundered.

Someone convicted of federal money laundering could face up to 20 years in prison and fines of up to $500,000 or twice the value of the property involved in the transaction, whichever is greater. When prosecutors charge someone, they often include additional, related criminal charges which can increase the severity of the potential punishment.

What Are Defenses to Charges of Money Laundering?

Federal money laundering laws are complicated, and multiple defenses are available. Common defenses to charges of money laundering include:

1. You were not aware that the funds were acquired illegally and/or the funds were not illegal.
2. You did not deliberately conceal or disguise the origin of the assets.
3. Lack of evidence, particularly in cases that rely on inferences and circumstantial evidence.

What Should You Do If You Are Being Investigated?

If you think you are being investigated for money laundering, you must act quickly to protect yourself, your rights, and your freedom.

• Do not talk to federal investigators without your attorney.
• Hire an experienced white-collar defense attorney immediately.
• Keep detailed financial records and document communications related to your business.
• Avoid any suspicious financial transactions

How the Law Offices of Hope Lefeber Can Help

Hope Lefeber has decades of experience defending people charged with federal financial crimes. She began her career as an Enforcement Attorney for the United States Securities and Exchange Commission (SEC) where she learned how the government prepares and prosecutes federal white-collar criminal cases. Today, she uses that experience to defend people charged with money laundering and other financial crimes in federal court. She will carefully analyze the charges against you, provide advice and guidance to help you evaluate your options, and prepare a vigorous defense designed to achieve optimal results in your situation.

Contact the Law Office of Hope Lefeber

With offices in Philadelphia and New York City, Hope Lefeber defends people charged with federal white-collar crimes throughout Pennsylvania and in New York. Contact our law office today to schedule a confidential appointment to discuss your situation and how we can help.