Money laundering under 18 U.S.C. § 1956 is a federal charge that turns legitimate financial transactions into federal crimes if prosecutors can prove the proceeds came from specified unlawful activity. The FBI Los Angeles Field Office and DEA Los Angeles Division bring these charges as standalone offenses and in combination with drug trafficking and RICO cases.
Conviction means up to 20 years in federal prison.The Bulldog Law understands the financial complexity of federal money laundering cases. We attack knowledge, intent, and the government's characterization of proceeds at every turn.
What 18 U.S.C. § 1956 Requires
18 U.S.C. § 1956(a)(1) covers transactions involving proceeds of specified unlawful activity (SUA) conducted with knowledge that the property is derived from criminal activity, with intent to promote SUA, evade taxes, conceal the source, or avoid reporting requirements.
§ 1956(a)(2) covers international transportation of money laundering proceeds. § 1956(h) covers conspiracy to commit money laundering often the broadest charged count.
Specified unlawful activities include drug trafficking, wire fraud, mail fraud, RICO, and dozens of other federal predicates. The government need not charge the SUA predicate they only need to prove the funds derived from it.
How The Bulldog Challenges FBI and DEA Evidence
Knowledge is the cornerstone of money laundering defense. The government must prove the defendant knew the funds were proceeds of criminal activity not merely that they were suspicious or unexplained.
In currency transaction cases, we challenge whether the defendant had actual knowledge versus mere suspicion. Financial professionals and business owners who accept cash in industries with high cash volume face unfair prosecution when prosecutors conflate deliberate ignorance with knowledge.
Concealmentintent must be proven. Ordinary business transactions, even with unlawfully derived funds, do not constitute money laundering unless concealment of the source was intended.
We retain forensic accountants to trace financial flows and demonstrate that the transactions were consistent with legitimate business activity, or that the alleged proceeds cannot be traced to criminal activity beyond a reasonable doubt.
In conspiracy cases, we challenge the government's aggregation of co defendants' conduct and fight to limit our client's individual exposure.
What to Do in the First 24 Hours After a Federal Money Laundering Arrest in Los Angeles
Federal money laundering indictments in Los Angeles frequently follow lengthy grand jury investigations. The government may seize assets prior to or concurrent with arrest. You will be transported to the Metropolitan Detention Center (MDC).
Do not discuss financial transactions with anyone including family members. Every conversation you have from custody can be monitored. Only speak with your attorney.
Your initial appearance before a U.S. Magistrate Judge at the Central District Courthouse occurs within 24 hours. Asset forfeiture proceedings begin simultaneously with the criminal case. The Bulldog Law fights both fronts at once.
Asset Forfeiture in Money Laundering Cases
18 U.S.C. § 982 provides for criminal forfeiture of all property involved in or traceable to money laundering. The government may seek forfeiture of bank accounts, real property, vehicles, and business assets. We contest forfeiture at every stage, including filing innocent owner claims for third party assets.
Frequently Asked Questions
What is the penalty for federal money laundering under 18 U.S.C. § 1956?
Conviction under § 1956 carries up to 20 years in federal prison per count, plus fines up to $500,000 or twice the laundered amount, whichever is greater.
What is a specified unlawful activity in a money laundering case?
Specified unlawful activities (SUAs) are predicate crimes whose proceeds can be the basis for money laundering charges, including drug trafficking, wire fraud, mail fraud, and RICO violations.
Can asset forfeiture be challenged in a money laundering case?
Yes. We file innocent owner claims, challenge the government's tracing methodology, and contest forfeiture of any asset not directly traceable to criminal proceeds.
What is the difference between money laundering and tax evasion?
Money laundering involves transactions with proceeds of specified unlawful activity. Tax evasion involves willful failure to report or pay taxes. They can be charged separately or in combination.
Can I be convicted of money laundering without a drug trafficking conviction?
Yes. The government need not convict or even charge the predicate SUA offense. They only need to prove beyond a reasonable doubt that the funds were proceeds of criminal activity.
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