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So your probably facing money laundering charges and your confused because you thought you were just conducting normal business transactions. Maybe you deposited cash from your business. Maybe you wired money internationally. Or maybe your just accused of handling money that prosecutors claim came from crimes. Look, we get it. Your ABSOLUTELY SHOCKED these are federal crimes. And you should be TERRIFIED! Because 18 USC 1956 carries 20 YEARS in federal prison and prosecutors charge money laundering in almost EVERY financial crime case!
Let me explain the trap prosecutors are using. Section 1956 criminalizes laundering proceeds from over 250 “specified unlawful activities” – incredibly broad statute turning ordinary financial transactions into federal crimes!
The statute has FOUR types of money laundering! Promotional laundering (transactions to promote illegal activity), concealment laundering (hiding source/ownership of proceeds), structuring (avoiding reporting requirements), and tax evasion laundering! Each carries 20 years maximum!
Here’s what’s really scary – don’t need to be convicted of underlying crime to face money laundering charges! Prosecutors charge money laundering even when they can’t prove predicate offense! We’ve seen acquittals on fraud but convictions on laundering same money!
“Specified unlawful activity” includes HUNDREDS of crimes! Most RICO predicates, drug crimes, fraud, bribery, environmental crimes, healthcare fraud, immigration offenses! List keeps expanding! Your “underlying crime” could be something you didn’t know was illegal!
Two money laundering statutes with DIFFERENT elements and penalties!
Section 1956 requires proof of intent to promote or conceal illegal activity – more elements but higher penalties (20 years)! Must show you conducted financial transaction with proceeds from specified unlawful activity AND intended to promote crime or hide proceeds!
Section 1957 is “simpler” but still devastating! Prohibits any monetary transaction over $10,000 involving proceeds from specified unlawful activity – that’s IT! Don’t need to prove promotional or concealment intent!
1957 penalties are “only” 10 years versus 1956’s 20 years! But prosecutors charge BOTH! Same transaction charged under both statutes! Deposit $50,000 in drug proceeds? That’s one 1956 count (concealment) AND one 1957 count (monetary transaction)!
The $10,000 threshold for 1957 is PER TRANSACTION! Make 10 deposits of $15,000? That’s 10 separate counts! Each wire transfer, each check, each withdrawal is separate violation! We’ve seen indictments with 50+ counts from routine banking!
Knowledge requirements differ slightly! 1956 requires knowing property represents proceeds from “some form” of illegal activity! 1957 requires knowing property derived from specified unlawful activity! Subtle distinction but affects defenses!
Classic money laundering has three stages prosecutors look for!
Placement: introducing illicit funds into financial system – cash deposits, purchasing assets, commingling with legitimate funds! This is riskiest stage because large cash transactions trigger reporting!
Layering: complex series of transactions obscuring money’s origins! Wire transfers through multiple accounts, shell company transactions, international transfers, purchasing and selling assets! More layers = harder to trace!
Integration: laundered money re-enters economy appearing legitimate! Investing in businesses, real estate purchases, luxury goods, “consulting fees,” loans to legitimate entities! By this stage, money looks clean!
But you DON’T need all three stages for conviction! Single deposit can be money laundering! One wire transfer! Prosecutors argue every financial transaction is potential laundering!
We’ve seen prosecutions for “placement” only – depositing cash into bank! Or “layering” only – moving money between accounts! Don’t need sophisticated scheme – basic banking becomes money laundering if involves crime proceeds!
Structuring violations are COMMONLY charged alongside money laundering!
“Structuring” means breaking transactions into amounts under $10,000 to avoid Currency Transaction Reports! Banks must file CTR for transactions over $10,000! Deliberately staying below threshold is federal crime!
Classic structuring: deposit $50,000 but do it as five $9,000 deposits! Prosecutors call this “smurfing” – using multiple people to make smaller deposits! Each deposit is separate structuring count!
But here’s the trap – structuring charges don’t require proving money was from crime! Just breaking up transactions to avoid reporting is crime! Legitimate business income deposited in $9,000 chunks? Still structuring!
Even LEGAL SOURCE money becomes crime through structuring! One client ran cash business, deposited earnings under $10,000 to “avoid paperwork” – convicted of structuring even though money was legal!
Structuring is 5-year felony separate from money laundering! But prosecutors charge BOTH! Structured deposits of crime proceeds? That’s structuring (5 years) AND money laundering (20 years)! Penalties stack creating decades of exposure!
This is CRITICAL element and most common defense!
Government must prove you knew property represented proceeds from specified unlawful activity – but NOT which specific crime! Just that it came from “some form” of illegal activity!
This creates impossibly low bar! Don’t need to know it was drug money versus fraud money – just that it was “dirty”! We’ve seen convictions where defendant didn’t know source but “should have suspected”!
“Willful blindness” satisfies knowledge requirement! If you deliberately avoided learning money’s source despite suspicions, that’s knowledge! Asked no questions about large cash payments? Willful blindness! Accepted implausible explanations? Guilty knowledge!
The Global-Tech standard requires: (1) defendant subjectively believed there was high probability of illegal activity, AND (2) deliberately took actions to avoid confirming that belief! Courts broadly apply this – any failure to investigate suspicious circumstances can be willful blindness!
We fight by showing client had NO reason to suspect illegal source! Legitimate business explanation existed! Client asked appropriate questions! Lack of knowledge is complete defense – but burden is proving government’s case wrong, not proving your innocence!
Sentences are CRUSHING and include total asset seizure!
Section 1956: up to 20 years per count, fines up to $500,000 OR twice the value of transaction (whichever is greater)! Multiple counts = life imprisonment! Ten laundering transactions? 200 years exposure!
Section 1957: up to 10 years per count, fines up to $250,000 or twice transaction value! Still creates massive exposure with multiple counts!
But FORFEITURE is where government really destroys you! Upon conviction, forfeit any property involved in money laundering AND any property traceable to proceeds! This means EVERYTHING!
Bank accounts? Seized! Real estate purchased with laundered money? Forfeited! Businesses? Gone! Even assets purchased with “clean” money commingled with dirty money! We’ve seen total financial devastation!
Civil forfeiture can happen WITHOUT criminal conviction! Government seizes property claiming it’s laundering proceeds – you must prove it’s innocent! Burden shifts to you!
Recent case: U.S. v. Adedayo John (2024) – defendants ordered to forfeit over $25 MILLION and pay $8 million restitution! Bank fraud ring members got 7 years PLUS total financial destruction!
Several defenses exist but all require aggressive litigation!
Lack of knowledge is primary defense – didn’t know and had no reason to know money came from crime! Must show you believed source was legitimate! We present evidence of client’s reasonable beliefs!
No specified unlawful activity! If government can’t prove underlying predicate offense, money laundering fails! We challenge government to actually prove the crime that allegedly generated proceeds!
Tracing failures! Government must trace specific funds to specific crimes! If can’t show THIS money came from THAT crime, conviction fails! We exploit gaps in financial tracking!
Legitimate purpose for transaction! If transaction served genuine business purpose unrelated to concealment, not money laundering! Restructuring debt, paying legitimate expenses, normal business operations!
Entrapment for sting operations! Government informants induced transaction you wouldn’t otherwise do? Entrapment defense! We’ve won when undercover agents created entire scheme!
Statute of limitations! Generally 5 years but can extend with continuing violations! Each transaction restarts clock – must identify when LAST laundering act occurred!
Cross-border transactions create EXTRA charges and jurisdiction!
Section 1956(a)(2) specifically targets international money laundering – moving funds into or out of U.S. to promote specified unlawful activity OR to evade reporting!
International wire transfers are prosecution favorites! Every international transfer over $10,000 must be reported! Using multiple smaller transfers? International structuring! Single large transfer? International money laundering!
Foreign shell companies and offshore accounts trigger intense scrutiny! Even legitimate business reasons for foreign accounts get investigated! Prosecutors assume foreign banking = money laundering!
Patriot Act expanded international money laundering prosecution! Terrorism financing added to money laundering statutes! Sending money to certain countries? Automatically suspect!
We defend by showing legitimate international business purposes! Import/export companies NEED foreign accounts! International families transfer money for support! Not every foreign transaction is sinister!
Look, we’re not your typical lawyers who don’t understand financial transactions. We’re former federal prosecutors who CHARGED money laundering cases and know EXACTLY what government must prove!
We understand how to challenge knowledge elements and willful blindness theories! We know how to sever connections between transactions and alleged predicate crimes! We can demonstrate legitimate business purposes for complex financial arrangements! Most importantly, we fight forfeiture proceedings to save your assets!
Other lawyers treat money laundering like simple fraud – WRONG approach! Different elements! Different intent requirements! Different tracing standards! Their ignorance leads to convictions AND total asset seizure!
Call us RIGHT NOW at 212-300-5196
Money laundering investigations freeze accounts IMMEDIATELY!
Former federal prosecutors – Money laundering specialists – Available 24/7!
Don’t wait if your facing money laundering investigation! Government is tracing transactions NOW! Accounts will be frozen! Assets seized! Every day without counsel means more financial damage! Self-surrender possible if you act immediately!
Remember – federal money laundering charges aren’t about sophisticated criminal schemes, there about prosecutors interpreting ordinary financial transactions as crimes. One deposit, one wire transfer, one cash transaction can mean 20 years in prison plus total forfeiture. You need someone who understands both complex financial systems AND money laundering law. Call us NOW before money laundering charges destroy your financial life!
Very diligent, organized associates; got my case dismissed. Hard working attorneys who can put up with your anxiousness. I was accused of robbing a gemstone dealer. Definitely A law group that lays out all possible options and best alternative routes. Recommended for sure.
- ROBIN, GUN CHARGES ROBIN
NJ CRIMINAL DEFENSE ATTORNEYS