The crime of money laundering consists of taking money from drugs, theft, or other criminal activity and “transforming it” into legitimate money by running it through a front business of some kind. Often this will require some sort of cash business and some accounting fraud.
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Some criminals use complex banking schemes or cryptocurrencies to conduct money laundering activities. For example a criminal might take a large influx of cash, break it up into smaller deposits, and send those deposits off to different financial institutions. Once it goes into a legitimate financial institution it’s harder to track as illegal money, especially if the criminal begins moving the money around in confusing ways, on purpose.
Sometimes money laundering coincides with cyber crimes like online gambling, or online auction sites.
What Are the Penalties for Money Laundering?
Money laundering is a federal crime. It’s punishable by up to 20 years in federal prison and up to $500,000 in fines.
Is It Possible To Be Falsely Accused of Money Laundering?
Most laundering is planned and carefully executed. However, there are a few activities which can get you suspected of money laundering even if you aren’t engaging in that particular activity.
Gambling is one; money launderers often purchase gambling chips with illegal cash, turn them back in, and then claim inflated gambling winnings.
Heavy trade in cryptocurrency is another, as cryptocurrency has become the hot new method for money launderers. There are even cryptocurrency ATMs.
Former Netflix VP Convicted of Fraud and Money Laundering
On Friday, April 30, former Netflix VP Michael Kail was found guilty on 28 counts of wire fraud, three counts of mail fraud, and seven counts of money laundering. He was convicted of receiving stock options, bribes, and kickbacks from tech companies in return for approving their contracts.
A kickback is any illegal payment received as compensation for preferential treatment. Kail apparently created an LLC called Unix Mercenary to receive the bribes, which he then used for personal expenses. He could be facing up to 20 years in prison, as well as fines. He’ll be sentenced in about 3 months but is currently free on bond.
On a press release issued by the Justice Department, Michael Daniels, Acting Special Agent in Charge of IRS Criminal Investigations said: “High ranking corporate officials hold positions of trust not only in their companies, but also in the eyes of the public. That trust is broken when such officials abuse their power and commit crimes to unjustly enrich themselves.”
The specific statutes violated were 18 U.S.C. §§ 1341 (mail fraud), 1343 (wire fraud), 1346 (honest services fraud), and 1957 (money laundering).
The main crime was Honest Services Fraud: “A scheme or artifice to deprive another of the intangible right of honest services.” Most fiduciary relationships demand that the holders of certain positions function openly and faithfully while performing certain services. In 2010 the Supreme Court ruled in Skilling vs. United States that this statute can be applied to bribery and kickback schemes.
The wire fraud and mail fraud charges were applied to the various methods Kael used to enact the scheme. Creating his LLC allowed the government to tack on the money laundering charge.
What Should You Do if You’ve Been Accused of Money Laundering?
The very first thing you need to do is retain an attorney who has experience handling white collar federal criminal cases, including money laundering cases. Your Nassau white collar crime attorney can help you list out, gather, and secure any exculpatory evidence you may have access to. You will need to help your attorney secure these documents and locate witnesses.
The second thing you need to do is be very quiet about your case. Do not discuss it with family members, friends, or other parties.
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The only person you should discuss your case with is your attorney. Your communications with your attorney are protected by attorney-client privilege. The prosecution can bring anyone else up on the stand and ask them questions about what you had to say.
Are you in trouble? Get help from Koch Law today.
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