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Defending Complex Federal Money Laundering Cases in New York
Defending Complex Federal Money Laundering Cases in New York
Money laundering cases in New York can be extremely complex, especially when they involve federal charges. As a criminal defense attorney in New York, I’ve handled many complex federal money laundering cases over the years. Here’s what I’ve learned about building an effective defense strategy for these types of cases.
Understanding the Charges
The first step is to thoroughly understand the specific charges being brought. There are several federal money laundering statutes, but the main ones used in New York are:
- 18 U.S.C. § 1956 – Laundering of monetary instruments
- 18 U.S.C. § 1957 – Engaging in monetary transactions in property derived from specified unlawful activity
Section 1956 prohibits financial transactions involving proceeds from a known felony if the intent is to conceal the source of funds, evade taxes, or promote further criminal activity. Section 1957 prohibits monetary transactions over $10,000 derived from criminal activity. The key is to analyze the specific charges and pinpoint which actions are considered illegal conduct according to the prosecution [1].
Examining the Evidence
The next step is to thoroughly review all the evidence. This includes financial records, surveillance footage, wiretaps, witness statements, and anything else the prosecution has. The goal is to find inconsistencies, mistakes, exaggerations, or anything else that raises doubts about the strength of the government’s case.
Some things to look out for include [2]:
- Weak links between the defendant and criminal activity
- Circumstantial evidence that could have innocent explanations
- Unreliable witnesses or informants
- Improper or misleading translations of foreign language evidence
- Technical errors in analyzing complex financial transactions
Finding issues in the evidence provides opportunities to get charges dismissed before trial and also helps develop strategies for the defense.
Understanding the Client’s Business
To properly advise a client and build an effective defense in a federal money laundering case, you need to intimately understand their business and financial dealings. This includes:
- Learning the client’s background, family, business history, etc.
- Reviewing financial statements, tax returns, business documents
- Understanding the client’s role in the company and decision-making authority
- Identifying weaknesses or problems in company operations and controls
- Determining normal business practices that may be misunderstood as illicit
Having in-depth knowledge of the client’s business provides critical context for defending against allegations of money laundering [3].
Developing Defense Theories
There are several common defense theories we employ in complex money laundering cases:
- Lack of criminal intent – Argue the transactions were for legitimate business purposes without knowledge funds were from illegal activity.
- Lack of knowledge – Claim the defendant did not actually know the funds came from criminality.
- Coercion – Argue the defendant was forced into the transactions by threats of violence.
- Entrapment – Allege the government induced the defendant into committing the crime.
- Statute of limitations – Assert the illegal transactions occurred beyond the 5-year limit for federal money laundering charges [4].
The key is developing a theory that fits the specific facts and evidence in the case. We thoroughly research case law to find defenses that have worked previously for similar charges.
Attacking the Government’s Case
In addition to building defense theories, we also look for ways to attack and undermine the prosecution’s case. This includes:
- Filing motions to suppress evidence improperly obtained.
- Filing motions in limine to exclude prejudicial evidence.
- Contesting the admissibility of expert witness testimony.
- Raising objections during trial to create reasonable doubt.
- Intensively cross-examining witnesses to expose credibility issues.
- Using expert witnesses to rebut the prosecution’s theories.
We look at every angle possible for keeping damaging evidence out of court and attacking the government’s narrative at trial. This forces prosecutors to meet their high burden of proof for conviction [5].
Avoiding the Pitfalls
There are some common pitfalls we try to avoid when defending federal money laundering charges:
- Making false statements – This can lead to additional charges of obstruction of justice or perjury.
- Destroying evidence – Defendants must avoid any appearance of hiding anything.
- Mischaracterizing transactions – The complex paper trail makes this easy for prosecutors to prove.
- Underestimating the prosecution – Government attorneys in these cases are extremely thorough.
- Not preparing clients for trial – Extensive prep ensures they appear honest and sympathetic.
Avoiding these missteps is critical, as they can completely derail an otherwise strong defense in court.
Sentencing Mitigation Strategies
If a conviction does occur, all is not lost. There are still opportunities to mitigate sentencing and penalties. Strategies we employ include:
- Highlighting first-time offender status and lack of criminal history
- Presenting character witness testimony and letters of support
- Detailing family responsibilities and community ties
- Cooperating with prosecutors on related investigations
- Making good faith efforts to pay restitution pre-sentencing
- Expressing sincere remorse and requesting leniency
Judges have wide discretion at sentencing, so humanizing the defendant and showing redeeming qualities can make a big difference. Even shaving months or years off a sentence is a win.
Why Experience Matters
As you can see, building an effective defense in complex federal money laundering cases requires specialized expertise. Here’s why choosing an experienced attorney is so important:
- We’ve handled many similar cases and know what strategies work.
- We understand the complex financial transactions involved.
- We identify the flaws and technicalities in the government’s case.
- We have relationships with expert witnesses.
- We anticipate the prosecution’s moves and prepare our clients.
- We know the judges, prosecutors, and system inside and out.
There’s simply no substitute for experience when the stakes are so high. So if you or a loved one are facing federal money laundering charges in New York, I strongly encourage you to contact my office. I offer compassionate yet aggressive representation to achieve the most favorable outcome possible.
The Bottom Line
Defending complex federal money laundering charges requires creativity, meticulous preparation, deep knowledge of the law, and experience handling high-stakes cases. But with an effective strategy tailored to the specifics of the case, it is possible to successfully fight these allegations and achieve the best result for the client. This is what I strive to deliver for each person who puts their trust in me.
[1] https://www.justice.gov/jm/criminal-resource-manual-1409-money-laundering-charges
[2] https://www.gibsondunn.com/wp-content/uploads/documents/publications/Hooper-Rosenzweig-Lessons-Learned-from-Recent-OFAC-Actions.pdf
[3] https://www.americanbar.org/groups/criminal_justice/publications/criminal-justice-magazine/2021/winter/defending-money-laundering-cases/
[4] https://fas.org/sgp/crs/misc/RL33315.pdf
[5] https://www.law.cornell.edu/supct/html/06-1005.ZS.html