Federal money laundering charges are overwhelming. They’re especially scary if you don’t know why prosecutors are focusing on you. These cases involve complex banking records and alleged underlying crimes that the prosecution may not be able to prove. In many instances, the government can bring charges, even if you never committed the crime that generated the money. Federal money laundering cases hinge on how prosecutors interpret your actions and your knowledge at the time.
Federal money laundering investigations typically involve the Department of Justice and other federal law enforcement agencies. The U.S. government uses highly trained prosecutors who focus on financial crimes. They can target anyone from business owners and accountants to professionals handling client funds. Even routine business transactions can be used as evidence if investigators suspect they’re related to unlawful activity.
When you’re facing federal charges, you need a federal criminal defense lawyer who can meet the moment. The attorneys at the Law Offices of Jonathan F. Marshall have extensive experience defending people accused of federal financial crimes throughout New Jersey. Our team understands federal procedures and how to protect your rights from the moment we take your case.
Contact the Law Offices of Jonathan F. Marshall today for your free, fully confidential consultation. Discover how our federal money laundering defense attorneys can help build the most effective strategies for your case.
Federal Money Laundering Statutes
Federal prosecutors usually charge money laundering under Title 18 of the United States Code, Sections 1956 and 1957. While both involve moving money derived from illegal activity, they target slightly different conduct and require different elements for the government to prove. Our federal criminal defense lawyers can help you understand which charges you’re facing and how that will affect your defense.
18 U.S.C. § 1956 foc focuses on financial transactions involving the proceeds from specified unlawful activity. In practice, prosecutors use § 1956 for transactions that supposedly conceal the source of the money (or enable more criminal activity). The government must prove the following:
- A Financial Transaction Occurred – This can include deposits, withdrawals, wire transfers, or even the transfer of funds between accounts.
- The Money or Property Involved Came from a Federal Crime – These “specified unlawful activities” range from drug trafficking to fraud and bribery.
- You Knew the Money Came from Unlawful Activity – Note that “knowledge” can be inferred from circumstances, but a mere suspicion is not enough.
- The Transaction Was Intended to Conceal, Avoid Reporting Requirements, or Further Other Criminal Activity – For example, this law applies if someone deposited cash from an illegal source into a business account to make it appear legitimate.
- 1956 prosecutions often attempt to link transactions to intent. Even routine business practices can be described as “concealment” if they weren’t properly documented or if the prosecution doesn’t understand them.
18 U.S.C. § 1957 also targets monetary transactions involving criminally derived property, but it’s simpler in some ways. Prosecutors can bring charges under § 1957 if the following applies:
- You Engaged in a Monetary Transaction Involving More Than $10,000 – This can include cash deposits and business transactions exceeding the threshold.
- The Property Involved Had Criminal Origins – This means the funds were generated from illegal activity. However, unlike § 1956 charges, prosecutors don’t have to prove the transaction was meant to conceal or promote crime.
- You Knew the Property Came from Illegal Activity – In other words, knowledge is still required, but intent beyond that isn’t.
Because § 1957 focuses on the size of the transaction rather than your intent, even seemingly ordinary financial activity can be flagged as illegal.
Examples of Questionable Transactions Under § 1956 or § 1957
Multiple transactions can trigger a federal investigation. The following are some of the most common types that can catch an agency’s attention:
- Bank deposits and wire transfers involving large sums
- Cash purchases of high-value items (real estate, vehicles, luxury goods)
- Business payments or transfers between companies, especially if the origins are unclear
- Cryptocurrency or other digital asset transactions
Federal money laundering laws are broad; they cover everything from high-level organized crime to smaller-scale transactions. This allows prosecutors to pursue cases that may seem overreaching.
Even if you believe your transactions are legitimate, prosecutors may argue otherwise. Whether you knew the source and purpose of the funds will be a key question. The Law Offices of Jonathan F. Marshall can explain how the law applies to your specific circumstances while we start building your defense.
Elements of a Money Laundering Offense
Every federal money laundering charge requires proof beyond a reasonable doubt. The specific elements depend on the statute. For § 1956 charges, prosecutors must prove that a financial transaction took place, which involved proceeds from “specified unlawful activity.” They’ll need to prove that you knew those funds had illegal origins, and the transaction was meant to hide or enable more illegal actions.
If you’re charged under § 1957, prosecutors must show that a transaction exceeding $10,000 occurred and that you knowingly paid for it with funds from illegal activity.
Penalties for Money Laundering Charges
Convictions for federal money laundering can carry severe consequences. The penalties depend on the statute and the amount of money involved. They typically include the following:
- 1956 – You could serve up to 20 years in federal prison per count. You’ll also pay fines up to $500,000 or twice the value of the property involved, whichever is greater. Finally, you must forfeit any assets linked to the transactions.
- 1957 – Convictions carry up to 10 years of prison per count and fines up to twice the value of the property. You may also have to forfeit your criminally derived property.
Federal prosecutors often combine charges with crimes like tax evasion or conspiracy. That can significantly increase both potential prison time and financial penalties; you’re subject to punishments for each separate count.
Finally, prosecutors often freeze accounts or seize property early in an investigation. Hiring an aggressive, experienced federal defense attorney can help challenge overbroad forfeiture claims.
Defenses to Allegations of Federal Money Laundering
There are multiple defense strategies available, depending on your case. Many focus on what the government cannot prove rather than trying to dispute every allegation directly. Common defenses include the following:
- Lack of Knowledge – If you had no reason to suspect that your funds had illegal origins, this can be a strong defense.
- Absence of Intent (§ 1956) – The transaction must have been used to conceal or promote criminal activity. Routine business operations or personal transfers don’t automatically meet this threshold.
- Challenging the Underlying Activity – If the “specified unlawful activity” that supposedly generated the funds is mischaracterized or never proven, your lawyer can attack that error.
- Questioning How Transactions Are Classified – Not every transfer or deposit constitutes a “financial transaction” under federal law.
- Procedural Defenses – Evidence found through illegal searches or improperly executed subpoenas may be suppressed.
In practice, a successful defense often combines multiple strategies. Our federal defense lawyers for money laundering build strategies tailored to the specific transactions and other evidence in the case.
What to Do If You Are Facing Federal Money Laundering Charges
Federal investigations usually start long before a formal indictment. In fact, you might not realize you’re under investigation until you’re indicted. Some defendants receive a subpoena or an invitation to voluntarily provide information. You should do the following:
- Don’t Speak to Federal Agents Without a Lawyer Present – Anything you say can be used against you, even if it seems harmless at the time.
- Preserve All Financial Records and Communications – Avoid making any changes or attempting to hide transactions.
- Contact Experienced Federal Defense Lawyers Who Represent Money Laundering Cases – Early involvement allows lawyers to analyze the evidence and protect your assets from forfeiture. Your lawyer can also identify the strongest possible defenses and start negotiating with the prosecution early on.
Following these steps right away helps your lawyer protect your rights. In many cases, they can also lead to reduced charges and suppressed evidence.
How The Law Offices of Jonathan F. Marshall Can Help with Your Case
The attorneys at the Law Offices of Jonathan F. Marshall have a unique combination of federal and state criminal experience. With over 250 years of combined experience defending thousands of clients, our team is well-versed in defending complex financial crimes throughout New Jersey. Our renowned law firm has the following:
- Former county prosecutors who served as Directors of Major Crimes, Trial Division, Juvenile Division, Economic Crimes, Gun Task Forces, and Drug Task Forces
- Certified Criminal Trial Attorneys with decades of trial experience
- Former municipal prosecutors in over 25 New Jersey towns
- A team of 20 lawyers across 18 offices
- Familiarity with local courts and prosecutors
Our team evaluates each case on its own merits. We look for ways to challenge the prosecution and develop defense strategies to protect you from unwarranted penalties.
Get in Touch with Our Federal Money Laundering Lawyers in New Jersey for Help
If you’re facing federal money laundering charges or believe you are under investigation, you need attorneys who know how federal prosecutors build their cases and how to defend against them. The Law Offices of Jonathan F. Marshall offers free, fully confidential consultations with practical, experienced guidance. You can review our case results and client reviews to see what we’ve achieved for people facing similar federal financial charges.
Call us today to speak with a federal money laundering lawyer. We can explain your options and help you start crafting a defense before it’s too late.
