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Fighting Federal Money Laundering Charges in the SDNY
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Fighting Federal Money Laundering Charges in the SDNY
Being charged with money laundering by federal prosecutors is daunting. When those prosecutors are part of the prestigious Southern District of New York (SDNY), the challenge increases exponentially. The SDNY has taken down major criminals like the mob boss John Gotti and ponzi schemer Bernie Madoff. Its prosecutors are smart, experienced, and relentless.But that doesn’t mean fighting money laundering charges in the SDNY is hopeless. With an experienced federal criminal defense lawyer on your side, you can mount an aggressive defense. Here are some strategies and considerations when facing these allegations.
Understanding the Charges
Money laundering involves concealing the source of illegally obtained money to make it appear legitimate. Under federal law, it’s illegal to conduct a financial transaction using money from criminal activity like drug trafficking or fraud. Specific charges may include:
- Conspiracy to commit money laundering – Agreeing with others to launder money
- Transactions in criminally derived property – Engaging in deals using illegal proceeds
- Monetary transactions derived from criminal activity – Making any monetary transaction using over $10,000 from an illegal source
These charges all carry hefty penalties. Conspiracy and transactions over $10,000 can mean up to 20 years in prison. Transactions over $100,000 can lead to 10 years in prison. Fines up to $500,000 or twice the amount laundered are also common. With the SDNY’s resources, stacking multiple charges with consecutive sentences is possible.
Unique Aspects of Federal Cases
The SDNY is a federal prosecutor’s office, not a state one. This means key differences in the legal process:
- More investigation before charges – Federal cases take longer to build with extensive wiretaps, informants, and financial records. Charges don’t come until the prosecution feels it has an air-tight case.
- Higher conviction rates – Over 90% of federal cases end in conviction due to the thorough investigation beforehand.
- Harsher sentencing – Federal judges follow strict sentencing guidelines with long mandatory minimums required for many crimes. Bargaining for lighter sentences is harder.
- More resources – Federal prosecutors have huge budgets and specialized teams like forensic accountants and technology experts. The playing field is not even.
With the deck stacked against defendants, having an experienced federal defense lawyer is critical. Don’t rely on a state criminal lawyer unfamiliar with the federal system. The legal knowledge and relationships with prosecutors needed for federal cases take time to develop.
Building an Effective Defense Strategy
Fighting federal money laundering charges starts with understanding the prosecution’s case. What evidence do they have from financial records, informants, surveillance, or undercover operations? What are their legal theories for proving the charges? A defense lawyer will file motions to get as much discovery as possible.From there, options for attacking the charges include:Contesting the predicate crime – Money laundering requires an underlying criminal activity generating illegal proceeds. If that predicate crime can be disproven, the money laundering charges crumble as well. Common predicate crimes include drug trafficking, fraud, tax evasion, bribery, and illegal gambling.Attacking lack of knowledge – Prosecutors must prove the defendant knew the money came from illegal activity. Demonstrating a lack of knowledge about the source of funds or a reasonable explanation for not knowing can defeat charges.Disputing financial transactions – The defense can argue the financial transactions cited never occurred or involved legal funds, not illicit proceeds. Thoroughly investigating the paper trail is key.Dismantling conspiracy claims – Proving no agreement to launder money existed can beat a conspiracy charge. Undercover operations often supply evidence for conspiracy, which can be challenged as entrapment.Compliance programs – Some companies or individuals charged have formal compliance programs against money laundering. Documenting compliance efforts helps demonstrate a lack of intent to break the law.Attacking investigative techniques – Evidence from informants, surveillance, or searches may be challenged as unconstitutional or exceeding authority. Suppressed evidence can derail the prosecution’s case.An effective strategy likely combines several of these defenses tailored to the specific facts and charges alleged. Developing reasonable doubt on any element the prosecution must prove could lead to an acquittal.Even if the case goes to trial and ends in conviction, weakening the government’s case lays the groundwork for a lighter sentence. Convincing a judge you are less culpable is easier after undermining prosecutorial theories at trial. And your lawyer may uncover additional strategies during the process that turn the tide in your favor.
Understanding the Benefits of Cooperation
Given the high conviction rates in federal cases, cooperating with prosecutors to get charges reduced or dismissed completely is often the best option. In money laundering cases, you likely have information about the criminal organization, activities, and players that prosecutors want.The benefits of cooperating depend on the value of what you offer:
- Lesser charges – Providing substantial assistance early can lead to prosecutors downgrading charges before indictment.
- Dismissed charges – For ongoing cooperation throughout an investigation, charges may be dropped entirely.
- Lighter sentence – After pleading guilty, cooperating before sentencing usually means a lighter recommended sentence from prosecutors.
- Rule 35 motion – Continued cooperation after sentencing can lead to prosecutors filing a Rule 35 motion for a reduced sentence.
The SDNY has great leeway to reward cooperation, so if you have valuable information, don’t hesitate to explore this option with your lawyer. It may be the fastest path to resolving the case.
Conclusion
Facing federal money laundering charges in the SDNY is daunting but not hopeless. With an experienced federal defense lawyer adept at navigating complex financial cases, you can build an aggressive defense. Contesting the prosecution’s legal theories, attacking the evidence, or cooperating all offer ways to limit charges and punishment. Don’t go it alone against seasoned SDNY prosecutors. Get experienced legal firepower in your corner.