White Collar Crime: Understanding Money Laundering

When people think of money laundering, they often picture large scale mobsters like Al Capone laundering millions of dollars. However, many people might not even be aware that they are committing this crime. Understanding what money laundering is, and how it can impact your case, is very important.

What Is Money Laundering?

Money laundering is any action that takes money earned in some illegal way, and then running it through a series of steps to make it appear to have been obtained through legitimate methods. Without this step, the money would raise many red flags with the IRS, the police, and other agencies. While money laundering is illegal, those earning money illegally engage in it because they think that this method reduces their chances of getting caught.

In order to launder money, one must run it through one or more legitimate businesses. One famous (though fictitious) example of this is from the TV show, “Breaking Bad.” Walter White and his wife buy a car wash, and then proceeds to ring up fake car wash transactions using the money they needed laundered from his drug manufacturing. Another examples is working with the owner of a business who will “hire” you as an employee, even though technically you never do any work for them. The owner receives the dirty money, they run it through their business, and you are paid with money that on the surface seems legitimate.

There are also simpler and smaller scale types of money laundering. Transferring money between several bank accounts or breaking up large amounts of money into smaller deposits at multiple banks are some examples of “smaller” scale crimes. 

Penalties for Money Laundering

While many people launder money to reduce the risks of being caught making illegal money, it is a crime, and it comes with very serious penalties. Money laundering is a federal crime, which comes with some very serious penalties. The exact penalties will depend largely on the amount that has been laundered, and any related criminal activity that was a part of the laundering scheme. Federal courts can issue large fines, order restitution, require community service, and even sentence those found guilty to prison.

Get the Representation You Need

If you or a loved one has been charged with money laundering, you need an aggressive defense strategy right away. Even if there were no other charges, a guilty verdict related to money laundering can have very serious consequences. Contact our experienced team to schedule a consultation and learn how our team can help you right away.