Federal Money Laundering Cases
Federal money laundering charges under 18 U.S.C. §§ 1956 and 1957 compound the exposure of underlying fraud, drug, or other “specified unlawful activity” charges by adding separate counts with their own penalties. Money laundering counts can add 10-20 years per count to an already-serious federal case. Whether your case is in Louisville, Lexington, or anywhere in Kentucky, Clark + Harris provides experienced federal money laundering defense.
The Core Money Laundering Statutes
18 U.S.C. § 1956 addresses financial transactions involving proceeds of specified unlawful activity, with four different theories: promotion money laundering (using proceeds to promote continued SUA), concealment money laundering (transactions designed to conceal source), tax evasion money laundering, and international money laundering. Each carries up to 20 years.
18 U.S.C. § 1957 (the “10,000 statute”) prohibits engaging in monetary transactions of more than $10,000 involving criminally derived property — a simpler theory that doesn’t require proof of intent to conceal. §1957 carries a 10-year maximum.
Specified Unlawful Activities
Both statutes require that the funds derive from “specified unlawful activity” — a broad list defined in § 1956(c)(7) that includes virtually every serious federal offense. Drug trafficking, fraud, extortion, and many other crimes qualify as SUAs capable of supporting money laundering charges.
Defense Strategies
Money laundering defense strategies include challenging the “proceeds” element under United States v. Santos (requiring that the funds represent profits rather than gross receipts in some cases), challenging intent to conceal or promote under §1956, challenging knowledge that the funds derived from SUA, and attacking whether the alleged SUA qualifies under the statute. Loss and sentencing calculations under §2S1.1 also offer significant defense opportunities.
Structuring Charges
Related charges under 31 U.S.C. § 5324 address structuring financial transactions to avoid Currency Transaction Report requirements. Structuring is charged under § 5324(a) and carries its own 5-year maximum. The Supreme Court’s Ratzlaf v. United States decision requires willfulness for structuring convictions — creating defense opportunities when defendants lacked knowledge that structuring itself was illegal.
Contact Clark + Harris for Money Laundering Defense
Federal money laundering charges can dramatically increase sentencing exposure. Clark + Harris has the experience you need.
Call 859-474-0001 today for a confidential consultation.
Related Resources
If this information applied to your situation, the following Clark + Harris guides may also be helpful:
- Federal 924(c) Firearm Enhancements in Drug Cases
- White Collar Crimes and Immigration Consequences
- Armed Career Criminal Act (ACCA) Defense
- Federal Hobbs Act Robbery and Extortion
- Federal Child Pornography Possession Defense (18 U.S.C. § 2252)