Tucson Criminal Defense Lawyers Explain Money Laundering Laws  Money laundering is the act of concealing the origins of unlawfully obtained money. This process usually involves the use of seemingly legitimate businesses ("fronts") and often foreign banks and currency exchanges. Money earned through narcotics, weapons, or human trafficking cannot be reported as income, and higher level professional criminals need "clean" money in order to spend the money they make illegally. Money laundering treats unlawfully earned money as if it were earned legally, including paying taxes.
Money laundering and tax evasion investigations often go hand in hand, as the "follow the money" strategy of law enforcement is more likely to yield major players engaged in large scale illegal business (most commonly drug trafficking, importing controlled substances, but also including many other kinds of illegal activity). Money laundering investigations often result in criminal charges in federal or state court, as well as criminal and civil forfeiture proceedings. These are not mutually exclusive, as individuals can find themselves facing state and federal charges, and being subject to asset forfeiture proceedings. This means that in addition to the possibility of a felony conviction and prison time, subjects of a money laundering investigation may risk losing their money and other assets. ARIZONA STATE LAWS REGARDING MONEY LAUNDERING Arizona Revised Statutes 13-2317 defines money laundering, and breaks it down into three degrees. First degree money laundering is the most serious, and applies when laundered money is used to further terrorism or murder. Money laundering in the second degree covers a broad range of conduct intended to conceal the source of funds for any criminal offense, including racketeering. Money laundering in the third degree is the least serious money laundering charge under Arizona law, but is still a felony. Money laundering in the third degree is a class 6 felony. Money laundering in the second degree is a class 3 felony. Money laundering in the first degree is a class 2 felony. FEDERAL MONEY LAUNDERING LAWS Federal law enforcement agencies such as the Drug Enforcement Administration ("DEA"), Customs and Border Patrol ("CBP"), Federal Bureau of Investigation ("FBI"), Immigration and Customs Enforcement ("ICE"), and Bureau of Alcohol, Tobacco, and Firearms ("ATF") conduct sophisticated and thorough money laundering investigations, involving the use of surveillance, wiretaps, undercover agents, and confidential informants. Money laundering operations are generally carefully planned and executed, requiring skilled investigations to uncover. Local law enforcement agencies often work together with federal agencies to form task forces aimed at seizing large quantities of cash, and stopping money laundering. In Tucson, federal money laundering charges are prosecuted by the US Attorney's Office - District of Arizona, and cases are heard at the Evo A. DeConcini United States Courthouse. Under the Federal money laundering statute (18 U.S.C. § 1956(a)(1)), the government must prove that the defendant conducted or attempted to conduct a financial transaction, knowing that the property involved in the financial transaction represents the proceeds of an unlawful activity, with specific intent, and the property must actually be derived from a specified unlawful activity. Federal conspiracy, tax evasion, aiding and abetting, and drug trafficking laws are often heavily intertwined with money laundering prosecutions. AN EXAMPLE OF HOW MONEY LAUNDERING WORKS Jerry owns a struggling restaurant in Tucson. A childhood friend, Ray, traffics cocaine. Ray approaches Jerry about entering into a partnership that will benefit both of them: Ray will give Jerry some or all of his drug proceeds, and Jerry will treat that money as if it were income earned by the restaurant. As partners, Jerry and Ray will share in the restaurant profits, and be able to declare lawful income. Ray can now buy property and spend money without arousing suspicions. Ray is indicted in a Federal drug trafficking case after one of his employees "flips" on him in exchange for a reduced sentence. Federal prosecutors look into Ray's finances, and find that he reports income from the restaurant. The restaurant's operating accounts are frozen, and the government seizes the restaurant, Ray and Jerry's cars, and cash from the restaurant safe. Jerry is now also facing federal charges, and asset forfeiture proceedings. More Information About FRAUD CRIMES Defense More Information About FORGERY/COUNTERFEITING Defense IF YOU OR A LOVED ONE IS FACING MONEY LAUNDERING CHARGES IN TUCSON, CONTACT THE TUCSON DEFENDERS FOR A FREE CONSULTATION WITH A TUCSON CRIMINAL DEFENSE ATTORNEY. OUR FIRM HAS EXPERIENCE WITH ALL CRIMINAL CHARGES AS WELL AS WITH CIVIL AND CRIMINAL ASSET FORFEITURE, IN BOTH STATE AND FEDERAL COURT. Call Now 520-585-5757 TUCSON CRIMINAL DEFENSE LAWYERS
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