Criminal Defense Lawyers

Defending Complex Federal Money Laundering Conspiracy Cases in NY

Defending Complex Federal Money Laundering Conspiracy Cases in NY

Federal money laundering cases can seem really complicated and intimidating at first glance. There’s usually pages and pages of financial records, wire transfers, bank statements, and other evidence to sift through. It’s easy to get overwhelmed by all the details. But when you break it down, these cases boil down to some common elements that any good defense lawyer needs to focus on.

First, let’s back up a second and define what money laundering actually is. Basically, it’s when someone takes money from an illegal source – like drug dealing, fraud, bribery, etc. – and hides where it came from by funneling it through legitimate businesses or accounts. The goal is to make that dirty money look clean on paper so the criminal can spend it without raising red flags. Money laundering allows criminals to profit from illegal activities.

According to federal law, money laundering involves financial transactions that:

• Promote illegal activity
• Conceal the source of illegal funds
• Avoid reporting requirements
• Etc.

There’s a few main laws that target money laundering on the federal level:

• 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
• 18 U.S.C. § 1960 – Prohibition of unlicensed money transmitting businesses

Violating these laws can lead to some pretty serious criminal penalties – we’re talking decades in prison here. So defending complex money laundering cases in federal court is no joke. Let’s break down some tips for building an effective defense:

Follow the money

First and foremost, you need to intimately understand all the financial transactions involved in the alleged scheme. Get copies of all the bank records, wire transfers, shell company documents, etc. Create detailed flow charts showing where the money came from originally, how it moved between people and accounts, where it ended up ultimately. Look for any weak links or missing steps that you can exploit.

Question the source

A huge element the prosecution must prove is that the money came from an illegal source, aka the “specified unlawful activity.” But how solid is the evidence of that? For example, if they claim the money came from drug trafficking, can they conclusively trace it back to actual drug deals? Or is the connection speculative? Look for any doubt or logical leaps you can raise about the source of funds.

Follow disclosure laws

One way the government proves money laundering is by showing the defendant intentionally avoided reporting requirements for large transactions. But make sure the disclosure limits and timeline match the actual transactions. For example, a $10,000 cash transaction threshold must be hit within one business day, not spread out over time.

Review the paper trail

Meticulously review all the transaction records yourself and make sure the paper trail actually shows intent to conceal. Just because funds moved through many accounts doesn’t mean it was specifically to hide the source. Make sure the records match the prosecution’s timeline and allegations. Look for any legitimate reasons for the financial activity and transactions.

Knowledge is key

An essential element the prosecution must prove beyond a reasonable doubt is that the defendant knew the funds came from illegal activity and intended to conceal that source. But what exactly did the defendant know about the accounts, businesses, and transactions involved? Can they prove your client knew without a doubt the money was dirty? Look for weaknesses in their proof of knowledge and intent.

Follow the regulations

If the charges include operating an unlicensed money transmitting business, dig into the exact definitions and regulations around licensing requirements. Make sure the government isn’t stretching the interpretation of “money transmitting business.”

Crack the conspiracy

Often money laundering involves a conspiracy charge as well. This means prosecutors must prove there was an agreement between parties to launder funds. But look closely at the communications and actions of the co-conspirators – does it actually show agreement and intent to deceive together? Conspiracy charges can be defeated by raising reasonable doubt about the alleged agreement.

Follow the sentencing guidelines

If convicted, closely analyze the sentencing guidelines for where your client might fall based on the specific charges and amounts involved. Look for ways to argue for the lower end of the range. The guidelines provide some flexibility depending on the circumstances of the case.

Coordinate with other jurisdictions

Don’t forget that state prosecution is also possible, as NY has its own money laundering laws. Be prepared for parallel or related cases elsewhere. Work with prosecutors to get an overall fair outcome for your client across all jurisdictions.

Explore a plea deal

Given the steep penalties possible, a plea bargain may be the best option if the evidence is overwhelming. But conduct thorough negotiations to get charges dropped or reduced as much as possible. Offer cooperation against higher targets in exchange for leniency.

Dig up exculpatory evidence

Don’t just rely on the evidence the prosecution shares – aggressively hunt for any records or witnesses that might exonerate your client. File discovery motions and use investigators to turn over every stone. Any evidence raising doubt could tip the scales at trial.

Undermine witness credibility

If the case relies heavily on cooperating witness testimony, look for ways to undermine their credibility. Probe their background, bias, incentives to lie, and inconsistencies. Effective cross-examination of shaky witnesses can make a big difference.

Highlight legitimate income sources

To counter the dirty money allegations, make sure to document all your client’s legitimate income, assets, and business dealings that could account for the funds. Establishing lawful sources of money weakens the prosecution’s case.

There are many other creative legal and investigative tactics that skilled defense lawyers bring to the table as well. The main takeaway is that successfully defending complex money laundering charges requires in-depth knowledge of the financial paper trail, finding holes in the government’s narrative, establishing legitimate reasons for transactions, and raising reasonable doubt around intent and knowledge.

With sharp attention to detail, zealous investigation, and strategic negotiation, achieving fair outcomes for clients facing federal money laundering allegations is certainly possible.

The most important thing is having an experienced attorney intimately familiar with the complex web of money laundering laws and the array of defenses available. Fighting these challenging charges takes creativity, rigor, and tenacity.