Money Laundering
» Print This PageDallas Money Laundering Defense Lawyer: What is Money Laundering?
Money laundering is the process of taking cash received in transactions that are against the law (drug sales, manufacturing, distribution; embezzlement; fraud; gambling; black market sales of stolen goods; etc.) and getting that money into the financial system or marketplace where it can be used to buy things.
Money laundering involves taking the cash or illegal funds in the case of embezzlement and moving the funds so that its true ownership is kept secret. A common example of money laundering involves a drug dealer who deals in cash and needs to take lots of small bills and convert them into something bigger that he or she can use in the marketplace without suspicion.
This is done by all sorts of methods. Money can be moved through various accounts, even between various countries, as it is “cleaned” or “laundered.” Fake businesses can be used. Phony names can be created. Once the money is laundered, then the true owner of that money can use it to buy things like cars, houses, or large ticket items needed for future business (small planes, trucks, etc.).
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New and innovative ways to launder money are being created all the time; however, the federal government gives the following things they consider to be signs that someone is trying to move cash obtained in illegal operations into legitimate market flow, or engaged in money laundering:
- Financial Structuring
- Payments to vendor made in cash by unrelated third parties
- Payments to vendor made via wire transfers from unrelated third parties
- Payments to vendor made via checks, bank drafts or postal money orders from unrelated third parties
- False reporting, such as commodity missclassification, commodity over-valuation or under-valuation
- Carousel transactions (the repeated importation and exportation of the same high-value commodity)
- Commodities being traded do not match the business involved
- Unusual shipping routes or transshipment points
- Packaging inconsistent with commodity or shipping method
- Double-invoicing.
Charges of Money Laundering Often Filed Alongside Other Felony Charges
Here in Texas, both state and federal prosecutors often file charges of money laundering in tandem with other felony charges such as felony drug crime charges, or tax fraud allegations, or charges of various kinds of fraud (health care fraud; bank fraud; credit card fraud; etc.). Money laundering cases are complicated cases for both the prosecution and the defense, filled with lots of paperwork and covering long time periods. Expert testimony is often needed to explain the detailed, complicated fact scenarios that the government is alleging to be a money laundering operation.
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Defendants in Money Laundering Face Serious Repercussions: Imprisonment, Restitution
Money laundering systems involve the transfer of money, of course, and this usually ends up with professionals, executives, and even corporations being accused of violating the law. Professional reputations will be threatened and even the existence of being charged can taint and damage a career or livelihood that has taken years to achieve.
Accordingly, it is very important for anyone suspicious that they may be facing a money laundering allegation to get an experienced criminal defense attorney on board as soon as possible. This includes any pre-trial criminal investigation of operations by federal or state authorities.
Understanding the Federal Money Laundering Statutes
Several federal laws include provisions pertaining to money laundering. These include laws that target individuals and organizations involved in criminal enterprises as well as laws that impose reporting and other requirements for financial institutions and other businesses. Dallas federal money laundering defense lawyer Michael Lowe has extensive experience defending clients in cases involving allegations under federal laws, including (but not limited to):
Annunzio-Wylie Anti-Money Laundering Act
The Annunzio-Wylie Anti-Money Laundering Act establishes various requirements pertaining to money laundering detection and disclosure, including the requirement for financial institutions to prepare Suspicious Activity Reports (SARs). It also establishes enhanced penalties for money laundering-related violations of the Bank Secrecy Act.
Bank Secrecy Act
The Bank Secrecy Act establishes due diligence, recordkeeping, reporting, and other requirements for financial institutions and other entities. It establishes reporting requirements for individuals in certain circumstances as well. These requirements are intended to help the federal government prevent, detect, and prosecute money laundering, and noncompliance with these requirements can trigger civil or criminal penalties.
Money Laundering Control Act
The Money Laundering Control Act makes it a federal criminal offense to knowingly participate in, or facilitate, any aspect of a money laundering transaction. Federal money laundering convictions under the statute can carry a fine of up to $500,000 or twice the value of the property involved in the transaction, whichever is greater, and up to 20 years of federal imprisonment.
Money Laundering Suppression Act
The Money Laundering Suppression Act expands the scope of the Bank Secrecy Act—applying its requirements and prohibitions to money services businesses in addition to financial institutions. It also establishes additional compliance obligations and makes operating an unlicensed money services business a federal criminal offense.
USA PATRIOT Act
Among various other provisions, the USA PATRIOT Act includes provisions that enhance the federal government’s ability to detect and prosecute cross-border money laundering transactions. While this includes transactions intended to finance terrorist activities, the statute is not exclusive to terrorism-related enforcement.
These are not the only laws that apply in federal money laundering cases. The U.S. Department of Justice (DOJ) can pursue money laundering-related charges against individuals and entities under a variety of other federal statutes as well. If you need defense counsel for a federal money laundering case, Texas federal money laundering defense attorney Michael Lowe can assess the specific allegations at issue and build a comprehensive defense strategy focused on the specific circumstances at hand.
Parties Involved in All Phases of Alleged Money Laundering Operations Can Face Federal Charges
The DOJ often casts a wide net in federal money laundering cases. It is not unusual for prosecutors at the DOJ to target multiple individuals and organizations accused of conspiring to launder funds derived from criminal enterprises—from alleged criminal actors and their business associates to financial institutions, accounting firms, and other entities accused of either ignoring or covering up the source of ill-gotten funds.
Prosecutors typically break down the money laundering process into three phases, and they target individuals and entities suspected of playing a role during each phase:
1. Placement
“Placement” involves introducing illegal-source funds into the legitimate financial system. This can involve making deposits into offshore bank accounts, making small deposits into U.S. bank accounts (a practice referred to as “smurfing”), and using fraudulent invoices to make it appear as though the funds are from legitimate business operations—among a variety of other tactics.
2. Layering
“Layering” involves conducting a series of financial transactions in order to further obscure the original source of the funds involved and to make it more difficult to track them going forward. This can involve moving the funds between offshore accounts, setting up shell companies, purchasing real estate and other assets, or a variety of other evasive strategies.
3. Integration
“Integration” is the product of placement and layering. Once illegal-source funds have been integrated into the legitimate financial system, discerning their source can prove incredibly difficult. With that said, the DOJ is still able to rely on extensive resources, its global network of law enforcement partners, its subpoena power, and various other assets to uncover money laundering in many cases.
Crucially, efforts to launder funds do not have to be successful in order to trigger criminal culpability under federal law. Individuals and entities can (and frequently do) face charges for attempted money laundering and conspiracy to commit money laundering as well. In many cases, these charges carry the same penalties as charges for successful money laundering under the Money Laundering Control Act.
ARTICLE: Structured Case Deposits: What Do I Do When the IRS CID Agent Comes?
The Feds like to cast a wide net in their Indictments. You will often see various charges, including monetary crimes such as Money Laundering, Structured Cash Deposit, Tax Evasion, and other financial crimes. Mr. Lowe has extensive experience defending Federal financial crimes such as these, both related to and not related to other drug crimes.
Through Mr. Lowe’s experience, he has learned that the Federal Government (FBI, DEA, IRS, and Postal Inspector) is focusing more efforts on Structured Cash Deposits, also known as “Smurfing” or “Structuring.” This is one of the most confusing areas of Federal Criminal Law.
Mr. Lowe has written extensively on this topic to untangle the mess and help people investigated for these crimes better understand how they can defend themselves. If you or a loved one is investigated for this type of case, you owe it to yourself to read Mr. Lowe’s article Structured Case Deposits: What Do I Do When the IRS CID Agent Comes?
Texas Money Laundering Defense Lawyer
As a former prosecutor turned criminal defense lawyer with over 150 jury trials defending clients against charges brought by district attorneys and U.S. federal prosecutors in Dallas County, Tarrant County, and elsewhere in the State of Texas, Board Certified Criminal Lawyer Michael Lowe not only brings his years of experience to each case, he also dedicates 100% of his law practice to the defense of those being accused of a crime under Texas or federal law.
With a streamlined law firm that coordinates its efforts to give each client the personal attention that they need and deserve when fighting against the government and the possibility of jail time, fines, permanent marks on public records, prison incarceration, loss of licensure, loss of jobs, absence from family events and everyday living, Michael Lowe maintains an efficient and excellent criminal trial practice that is ready to help you or your loved ones in your defense against criminal charges from pre-arrest investigation to post-trial appeals.
To discuss your case in a free and completely confidential consultation, please contact Dallas Board Certified Criminal Lawyer Michael Lowe today.
FAQs: Defending Against Federal Money Laundering Allegations
Why Am I (or is My Business) Under Investigation for Money Laundering?
The DOJ and other federal authorities pursue money laundering investigations under a wide range of circumstances. To find out why you (or your business) is under investigation, and to identify the specific allegations and risks you (or your business) is facing, you will need to engage an experienced Texas federal money laundering defense attorney promptly.
How Can I Defend Against Federal Money Laundering Allegations?
Successfully defending against federal money laundering allegations starts with understanding the specific allegations at issue and the true facts at hand. Once you have a clear picture of the circumstances you are facing, then you can determine how best to proceed. Dallas federal money laundering defense lawyer Michael Lowe has extensive experience representing clients in high-stakes federal money laundering cases, and he can use his experience to help protect you (or your business) by all means available.
When Should I Engage a Texas Federal Money Laundering Defense Attorney?
You should engage a Texas federal money laundering defense attorney at the first sign that you (or your business) may be under investigation or facing charges. While facing charges is a very real risk, it may also be possible to resolve the investigation before charges are filed. However, this requires a proactive and strategic approach—as well as the ability to communicate with federal investigators and prosecutors effectively—and this means that you need an experienced Texas federal money laundering defense attorney on your side.
