When the FBI Comes Calling…®

When the FBI Comes Calling…^®

You may be charged with:

Money Laundering (18 U.S.C. §§ 1956, 1957)
Money Laundering is often a crime that is ancillary to some other wrongful act, such as dealing in drugs, theft or white collar fraud. The purpose of laundering money is to convert money or property gained from illegal activities into money that appears to have been legally earned. Financial transactions involving tainted money are typically conducted with legitimate businesses. These operations structure business transactions in a manner which provides for some percentage of money returned to the criminal. This financial windfall, in turn, becomes what appears to be legitimate income for the criminal.

Today's money laundering statutes apply equally to the individual or organization seeking to launder money and to the individual or organization offering a method to convert money gained from illegal activities into money that appears to have been legally earned.

In order to successfully prosecute a defendant for this type of crime, an Assistant United States Attorney (AUSA) must present evidence that when submitted to a jury or judge would prove beyond a reasonable doubt:

For violations of 18 U.S.C. § 1956(a)(1):
1. That the defendant knowingly conducted or attempted to conduct a financial transaction;
2. That the financial transaction involved proceeds of a specified unlawful act or activity;
3. That the defendant knew that the property involved in the financial transaction represented the proceeds of some form of unlawful activity; and 4. That the defendant intended to promote the carrying on of the specified unlawful act or activity.

For violations of 18 U.S.C. § 1957:
1. That the defendant engaged or attempted to engage in a monetary transaction;
2. That the defendant knew the transaction involved criminally derived property;
3. That the property had a value greater that $10,000;
4. That the property was derived from some specified unlawful act or activity; and
5. That the transaction occurred in the United States.

So how have the courts interpreted money laundering violations?

A. Evidence was sufficient that defendant's use of proceeds of wire fraud to pay off mortgage on his house and to purchase car was in furtherance of scheme to defraud investors, where defendant had office in home which he used to carry out fraudulent activity, and both purchases lent him aura of legitimacy, since jury could infer intent. United States v. Johnson, 971 F.2d 562 (10th Cir. 1992).

B. Evidence was sufficient to prove that defendants had requisite knowledge and intent to be found guilty of laundering checks they received through extortion and mail fraud, where they used charities and consulting company to cloak their activities with semblance of legitimacy, converting charitable donations and lobbying expenses into personal income. United States v. Hairston, 46 F.3d 361 (4th Cir. 1995).

C. Defendant laundered money within meaning of 18 U.S.C. § 1957, where he obtained loan by making false financial statement, in violation of 18 U.S.C. § 1344 (bank fraud), and authorized bank to act as his agent in transferring part of loan proceeds to balance he owed on another account before he ever obtained proceeds. United States v. Lee, 232 F.3d 556 (7th Cir. 2000).

Potential Punishment:
One may be found guilty of a felony, imprisoned up to 20 years, and fined up to $500,000, or twice the value of the property involved, whichever is greater. (18 U.S.C. § 1956).

One may be found guilty of a felony, imprisoned up to 10 years, and fined up to $250,000, or twice the amount of the property involved, whichever is greater. (18 U.S.C. § 1957).

A charge for violation of a terrorism statute may also be coupled with charges dealing with NBC Weapons, Espionage, Sabotage, or Treason, or less serious charges like Obstruction of Justice or False Statements, or may alternatively lead not to an arrest but to Combatant Detention or detention under the Material Witness statute.