Fort Lauderdale Money Laundering Defense Lawyers

Aggressive Defense for Federal Money Laundering Charges

Money laundering is a serious financial crime involving disguising the origins of illegally obtained funds, making them appear legitimate through complex transactions. This process allows individuals or organizations to integrate illicit money into the economy without raising suspicion. Given its potential ties to organized crime, fraud, and other offenses, federal authorities aggressively investigate and prosecute these cases.

Agencies such as the Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS), and the Department of Justice (DOJ) dedicate extensive resources to uncovering and investigating money laundering schemes. These investigations often involve sophisticated financial tracking methods, undercover operations, and cooperation with international law enforcement agencies. Because of this, individuals accused of money laundering may face overwhelming legal scrutiny and the possibility of severe penalties, including substantial fines and lengthy prison sentences.

The stakes are high in money laundering cases. At Hager & Schwartz, P.A., our firm provides strategic defense representation tailored to each client's unique circumstances. We carefully analyze the evidence, challenge procedural errors, and develop a defense strategy to protect their rights and future.

If you are under investigation or facing charges, seek legal guidance. Contact our money laundering defense attorneys to discuss your case in a confidential consultation.

A Look at Federal Money Laundering Laws

Money laundering is a serious financial crime prosecuted under federal law. It often carries significant penalties, including imprisonment, asset forfeiture, and substantial fines. The government aggressively pursues individuals and businesses suspected of laundering money, relying on broad statutes designed to prevent and detect illegal financial activities. Understanding the key laws governing money laundering is essential if you or someone you know is under investigation.

18 U.S.C. § 1956: Criminalizing Concealment of Illicit Funds

18 U.S.C. § 1956 is the primary federal statute targeting money laundering.

It prohibits knowingly conducting or attempting to conduct financial transactions with proceeds derived from criminal activity when the intent is to:

• Conceal or disguise the nature, location, source, ownership, or control of the funds,
• Promote continued illegal activity, or
• Avoid financial reporting requirements under federal law.

The statute applies broadly to individuals and organizations engaged in various illegal enterprises, including fraud, drug trafficking, and organized crime. Prosecutors often use 18 U.S.C. § 1956 to build complex cases, relying on financial records, surveillance, and testimony to prove intent and knowledge of the unlawful source of funds.

18 U.S.C. § 1957: Criminalizing Large Transactions with Illicit Funds

While 18 U.S.C. § 1956 focuses on concealment and intent, 18 U.S.C. § 1957 takes a more straightforward approach: It makes it a federal crime to engage in a monetary transaction exceeding $10,000 if the funds originate from specified unlawful activities. Unlike § 1956, this law does not require proof of intent to disguise the source of the funds—simply knowingly engaging in a transaction involving criminal proceeds is enough for prosecution.

For example, if an individual purchases real estate, luxury goods, or vehicles with illicitly obtained money, federal prosecutors could file charges under 18 U.S.C. § 1957. Because the threshold is relatively low, this statute is frequently used with other financial crime laws to enhance charges and penalties.

The Bank Secrecy Act: Preventing Money Laundering Through Financial Oversight

The Bank Secrecy Act (BSA) is a foundational legislation requiring financial institutions to help the government detect and prevent money laundering. Under the BSA, banks and other financial entities must:

• Report transactions exceeding $10,000 (Currency Transaction Reports or CTRs).
• File Suspicious Activity Reports (SARs) if they identify unusual transactions that may indicate criminal activity.
• Maintain records of financial transactions to aid law enforcement investigations.

The BSA empowers regulatory agencies such as the Financial Crimes Enforcement Network (FinCEN) to track financial movements and identify suspicious activity linked to money laundering, fraud, or other financial crimes. Failure to comply with these requirements can result in heavy fines and criminal liability for financial institutions and individuals involved in structuring transactions to evade detection.

Money Laundering and Related Financial Crimes

Money laundering rarely occurs in isolation. It is frequently linked to other financial crimes, particularly those classified as white collar crimes—non-violent crimes involving deception for monetary gain. In many cases, money laundering serves as a crucial step in disguising the proceeds of fraud, bribery, tax evasion, and embezzlement, making these crimes more difficult to detect. As federal agencies work to track illicit funds, offshore banking and complex financial structures often become key focal points of investigations.

Offenses often charged with money laundering include the following:

• Wire fraud. Wire fraud involves using electronic communications—such as emails, phone calls, or online transactions—to carry out fraudulent schemes. Because modern financial systems rely heavily on digital transfers, wire fraud often plays a central role in money laundering cases. Criminal enterprises may funnel illegal proceeds through multiple accounts or payment systems, making it harder to trace their origin.
• Tax evasion. Money laundering and tax evasion often go hand in hand. Individuals engaged in illegal activities—whether fraud, drug trafficking, or corporate misconduct—may attempt to conceal their income from tax authorities to avoid detection. Common tax evasion tactics include:

o   Offshore banking. Moving money to foreign accounts in jurisdictions with strict secrecy laws.

o   Shell companies. Creating corporate entities that exist only on paper to obscure the actual ownership of assets.

o   False reporting. Understating income, inflating expenses, or omitting financial details on tax returns.

• Bribery. Bribery—involving public officials or corporate executives—is another crime frequently associated with money laundering. Illicit payments to secure contracts, influence policies, or bypass regulations must often be disguised as legitimate transactions.
• Embezzlement. Embezzlement occurs when an individual—an employee or executive—misappropriates money from an organization for personal use. Unlike traditional theft, embezzlement often involves financial sophistication, making money laundering an essential tool for covering up the crime.

The Impact of a Money Laundering Conviction

A money laundering conviction carries severe penalties in federal criminal law. Because these cases often involve large sums of money, complex financial transactions, and potential ties to organized crime, federal prosecutors pursue them aggressively.

Federal sentencing guidelines for money laundering are unforgiving, and convictions often lead to long-term incarceration and financial ruin. Potential penalties include:

• Up to 20 years in federal prison
• Fines of up to $500,000 or twice the laundered amount
• Asset forfeiture

A money laundering conviction's financial and legal burden does not end with the sentence. Restitution payments, supervised release conditions, and restrictions on employment can make it challenging to rebuild one’s life after serving time.

How RICO Can Increase Penalties

Money laundering charges become even more serious when prosecuted under the Racketeer Influenced and Corrupt Organizations Act (RICO). Originally designed to combat organized crime, RICO laws allow prosecutors to pursue enhanced penalties if money laundering is linked to an ongoing criminal enterprise. If money laundering is tied to a RICO predicate offense, such as fraud, drug trafficking, or bribery, the sentence can increase to life in prison in extreme cases.

How a Money Laundering Defense Attorney Can Help

Facing federal money laundering charges can be overwhelming. The government has vast resources, and federal prosecutors build cases using extensive financial records, surveillance, and witness testimony. However, a strong legal defense can challenge the prosecution’s case and work to protect your rights. An experienced money laundering defense lawyer understands the complexities of financial crime cases and can develop strategic defenses tailored to your situation.

The burden of proof in a money laundering case lies with the government, which must demonstrate that you knowingly engaged in financial transactions involving illicit funds.

A skilled defense attorney can challenge this evidence by:

• Proving a lack of intent. Prosecutors must show that you knew the money came from unlawful activity. If you unknowingly handled funds that were later found to be connected to illegal operations, your attorney can argue that no criminal intent existed.
• Demonstrating legal sources of funds. Not all large financial transactions are illegal. If you can provide legitimate documentation showing that your income and assets came from lawful sources—such as business operations, investments, or inheritances—this could undermine the prosecution’s case.
• Identifying procedural violations. Federal investigations must adhere to strict legal guidelines when gathering evidence. If law enforcement violates your constitutional rights during an investigation, any improperly obtained evidence could be thrown out.

Why Choose Our Team for Your Money Laundering Defense?

Federal money laundering charges can be overwhelming, but having the right defense team can make a difference. At Hager & Schwartz, P.A., our attorneys bring extensive experience in white collar and financial crime defense, leveraging our background as former prosecutors to anticipate and counter federal investigation strategies. We build aggressive, strategic defenses to challenge allegations under RICO, the Bank Secrecy Act, and asset forfeiture laws, working tirelessly to protect your freedom, finances, and future.

Contact us for a confidential consultation if you are under investigation or facing charges.