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Federal law does not consider all unexplained deposits, transfers, or purchases to be money laundering. To charge someone with money laundering, prosecutors must prove the elements of a specific offense.
There are two primary federal laws that regulate transaction types related to certain specified unlawful activities; these are 18 U.S.C. § 1956 and § 1957.
Under 18 U.S.C. § 1956 (a)(1), an individual can be charged with conducting or attempting to conduct a qualifying financial transaction using proceeds from a specific type of illegal activity, knowing that the money is the result of some kind of illegal activity and meeting at least one of many other conditions.
These include intent to promote further specified unlawful activity; intent to engage in conduct violating certain federal tax statutes; knowledge that the transaction is designed to conceal the proceeds’ source, ownership or control; or knowledge that it is designed to avoid a state or federal reporting requirement.
Other sections of § 1956 address some types of international fund transfers and undercover transactions that involve money or other property which has been represented by law enforcement as being the product of a crime. Therefore, concealment is not always necessary for an offense to occur under § 1956 and there is no general $10,000 transaction limit established by the statute.
Section 1957 makes it an offense to knowingly engage in or attempt to engage in a “qualifying” monetary transaction involving criminally obtained property valued at more than $10,000; provided that the property was actually obtained through one of the specified unlawful activities and that all of the statutory jurisdictional requirements have been satisfied.
Nick Wooldridge has a long track record of representing clients accused of serious federal and state crimes in Nevada.
Unlike concealment laundering, § 1957 does not require prosecutors to prove that the transaction was designed to disguise the money. Nor must they establish that the defendant knew the precise offense producing the property. They still must prove the required knowledge and other statutory elements.
The term “specified unlawful activity” refers to numerous federal offenses and certain designated state and/or foreign crimes. This does not limit itself to racketeering offenses under 18 U.S.C. § 1961. Under federal law, proceeds are defined as gross receipts and not just profits.
This is especially true when prosecutors attempt to follow money through business accounts, investments, and/or transactions related to alleged fraud. While a legitimate transaction may be investigated, it will not automatically meet the legal definition of money laundering. The nature and source of the funds and each defendant’s state of mind are still central.
Generally, § 1956 offenses can result in up to 20 years in prison; however, for certain types of § 1956 offenses, the criminal fine can be as high as $500,000 or twice the amount of the transaction. Section 1957 usually results in up to 10 years in prison and applicable criminal fines (including an alternative fine based on the type of property).
Separate civil penalties can be imposed pursuant to Section 1956(b); however, the maximum penalty will be the larger of $10,000 or the value of the property. In addition, property may be subject to either criminal or civil forfeiture as long as all legal requirements have been met. It should be noted that each of these remedies are distinct and should not be confused.
When I initially met with Mr. Wooldridge, he took the opportunity to sit and go over my problem with me. He described details in my case which he found disturbing and explained why he I should have him on my side.
A defense review may focus on whether funds were criminally derived, what the defendant knew, whether the alleged purpose is supported by evidence, and whether the charged transaction satisfies the applicable statute. Bank records, contracts, communications and transaction histories can be decisive.
For legal representation in Nevada, see our Las Vegas money laundering lawyer page or contact LV Criminal Defense at (702) 623-6362.
Nevada also has a separate money laundering statute, NRS 207.195.
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