; Arrested for Money Laundering in Dallas? The Right Dallas White Collar Crimes Lawyer Can Make a Difference in Your Case
Learning Center
Plans & pricing Sign in
Sign Out
Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

Arrested for Money Laundering in Dallas? The Right Dallas White Collar Crimes Lawyer Can Make a Difference in Your Case


  • pg 1
									                         Arrested for Money Laundering in Dallas?
                      The Right Dallas White Collar Crimes Lawyer Can
                              Make a Difference in Your Case

Dallas   Money     Laundering   Attorney   Charles
Johnson provides premier legal       services for
individuals    facing money           laundering
charges. Unlike many large corporate law firms,
The Charles Johnson Law Firm structures a flat
fee to cover these types of cases, rather than
charging high hourly rates for work that is often

If you’ve been charged with or are under
investigation for money laundering, it is important
that you hire a highly skilled defense attorney
with experience defending money laundering
cases. Money laundering criminal investigations
are extremely thorough and often involve financial
experts who know how to follow the money trail.

The Federal      crime of   Money   Laundering is
traditionally understood to be the practice of
filtering “dirty” money, or ill-gotten gains, through a series of transactions until the funds are “clean,” or
appear to be proceeds from legal activities. The United States Criminal Code takes a broader stance towards
money laundering, and criminalizes knowingly engaging in a broad array of financial transactions that involve
money either derived from or meant to promote various illegal activities, or that involve certain elements of
deception. While money laundering charges are often perceived as related with drug crimes, they are more
frequently related with business-related crimes. For example, money laundering charges may be associated
with illegal funds obtained through business fraud, mortgage fraud/real estate fraud schemes or other white
collar crimes.

The Charles Johnson Law Firm represents individuals and institutions in matters such as:

        Hiding money
        Failing to file require cash transaction reports
        Making multiple cash withdrawals or deposits slightly below the $10,000 reporting
        Evading taxes by underreporting income
        Alleged Patriot Act violations
        Illegal wire transfers
        Financial transactions involving proceeds of unlawful activity
        Other illegal transactions
        Federal criminal appeals involving money laundering

Such activities are often viewed by federal prosecutors as indicators of money laundering. Dallas Money
Laundering Lawyer Charles Johnson will provide a vigorous defense of clients who have drawn scrutiny from
the federal government for their financial transactions. If the government is able to make the case that your
financial transactions were an effort to “launder” money received from criminal activities such as drug
trafficking or weapons trafficking, you will face forfeiture of your assets. Dallas Lawyer Charles Johnson is
available to speak with you directly about your case, anytime night or day, at 214-234-0111 if you
have been charged with or are being investigated for Money Laundering.

Overview of Money Laundering in Texas
Although money laundering can be a complex process, it usually involves three distinct steps that can occur
simultaneously or sequentially. These steps are referred to as (1) Placement, (2) Layering, and (3)

       Placement is the initial process of getting illegal funds into “the system,” or placing unlawful
        proceeds into legitimate financial institutions. A common technique used for placement is structuring,
        or “smurfing,” which involves dividing the funds into multiple deposits of cash that are below
        reporting thresholds and then depositing the funds at one or more institutions, using one or more
        individuals to make the deposits. Placement may also be accomplished by purchasing money orders or
        travelers checks at one institution and depositing them into accounts at other institutions.
       Layering is the process of converting funds after they have entered the legitimate system. This step
        involves a series of complex financial transactions that move the funds in order to distance them from
        their illegal source. For example, dirty money may be converted to clean money through the purchase
        and sale of stocks, bonds, art, or jewelry. It may also be wired as payment for non-existent goods,
        disbursement to a non-existent borrower, or simply a transfer to another account.
       Integration is the process in which the illegal funds re-enter the legitimate economy and become
        virtually indistinguishable from legal funds. The newly cleaned funds, often commingled with
        legitimate funds, are then ready for use, be it in investing in real estate, purchasing luxury items, or
        financing business ventures.

Common elements that drive the efforts of money launderers throughout this three step process include “the
need to conceal the origin and true ownership of the proceeds, the need to maintain control of the
proceeds, and the need to change the form of the proceeds in order to shrink the huge volumes of
cash generated by the initial criminal activity.” It is important, when reviewing literature on money
laundering, to be aware that a conviction for the crime of money laundering may not necessarily reflect
activity that would traditionally be understood to constitute money laundering. For example, someone who
buys legitimate goods online commits money laundering, under the federal statute, if the supplier is outside of
the country and the supplies are intended to facilitate one of several crimes — even if the product is itself
legal and is being used in a legal way. (For example, purchasing napkins in such a way would be money
laundering, if they were to be used by an illegal casino.)

Off-shore Accounts

Identifying and verifying money laundering is a difficult task, partly because of the complexities of the multi-
transactional process but also because of the legal, political, and economic barriers that interfere with and
often completely prevent investigation or enforcement of U.S. law outside of U.S. borders. Some of these
barriers are reduced through the use of “memoranda of understanding” (MOUs), or mutual agreements —
between agencies or officials of different nations — to exchange information and cooperate in criminal

investigations. However, not all nations enter into these or other cooperative agreements. Examples of these
instances include Nauru, Myanmar, and Nigeria.

Costs and Statistics

There is no clear picture of the actual amount of money laundered globally. Estimates based on reported
crimes will tend to underestimate the figure, and estimates based on the size of the underground economy
will tend to overestimate the actual amount. Synthesizing a variety of sources, the International Monetary
Fund cites figure of between ¾ of a percent to 2 percent of the world’s gross domestic product, when using
the reported crime method and 5 to 85 percent of a nation’s economy (depending on the nation) when using
the underground economy method. These two figures can be found in other sources, roughly combined to give
a range of 2-5 percent of the world’s GDP. In 1996, the 2-5 percent formula yielded between 590 billion and
1.5 trillion dollars. This figure is relatively often quoted as being the range of the magnitude of the money
laundering problem (sometimes “rounded up” to 600 billion)- such as by the FBI. The U.S. Department of the
Treasury has also been quoted as estimating that “$600 billion represents a conservative estimate of the
amount of money laundered each year.” Using 2005’s world GDP of 59.6 trillion, the 2-5% approach would
give one a figure of between 1.2 and 3 trillion dollars. Of course, the research that provided the main support
for the 2-5% figure is itself a decade old, and money laundering has become an issue commanding much
greater legislative, regulative, and law enforcement attention in the wake of September 11th. In fiscal year
2001, federal law enforcement agencies in the U.S. seized more than $300 million in criminal assets that were
attributable to money laundering. In 2001, U.S. district courts completed 1,420 money laundering cases and
convicted 1,243 individuals, or more than 87 percent of the defendants prosecuted. Some of these cases
involved more than $100 million in laundered funds, and one-fifth of the cases involved more than $1 million.
Of the Money Laundering Control Act charges made in 2001, 63 percent involved fraud, bank embezzlement,
transporting stolen property, and counterfeiting, and 16 percent involved drug trafficking. Almost half (44
percent) of the money laundering cases referred to U.S. Attorneys in 2001 occurred in the six geographic
areas designated by the U.S. Departments of Justice and the Treasury as areas of high risk for financial crimes
and money laundering activity (High Intensity Financial Crime Areas or HIFCAs). These areas are (with the
year designated a HIFCA)

      New York and Northern New Jersey – (2000)
      Los Angeles – (2000)
      San Juan, Puerto Rico – (2000)
      The southwest Texas and Arizona/Mexico border – (2000)
      The northern district of Illinois (Chicago) – (2001)
      The northern district of California (San Francisco) – (2001)
      Southern Florida (Miami) – (2003)

High Profile Examples/Case Studies

In 2006, Charles E. Edwards was sentenced to 13 years in prison and was ordered to pay $320,397,837 in
restitution following his September conviction on charges of wire fraud, money laundering, and conspiracy to
commit money laundering. The evidence showed that from 1996 through September 2000, Edwards, the
founder of ETS Payphones, Inc. (ETS), raised capital to grow his coin-operated payphone business by using a
network of independent insurance agents to sell payphones to investors throughout the United States for
$5,000 to $7,000 per phone. Edwards convinced investors to buy payphones and lease them back to ETS for
what Edwards claimed would be a guaranteed profit of approximately 14 percent per year. The scheme
defrauded approximately 12,000 nationwide investors out of more than $400 million. Edwards siphoned off
approximately $21 million of the fraud proceeds for himself and his wife. In addition, the evidence showed
that Edwards engaged in a series of unusual and convoluted financial transactions, which served no legitimate
business purpose and were intended solely to conceal and disguise the source, location, ownership, nature,
and control of the proceeds involved in those transactions.In 2006, Edmundo P. Rubi was sentenced to 70
months in prison for conspiracy to commit mail fraud and money laundering. Rubi previously pled guilty to the
charge that he conspired to conduct a scheme to defraud investors out of more than $12 million using his
companies, Knights Express, Ltd. and Djmler Enterprises, Inc. Rubi was also ordered to pay restitution in the
amount of $12,483,000. According to the plea agreement, beginning in 1999 and continuing up to October 31,
2001, Rubi formed and operated Knights Express Ltd. and Djmler Enterprises, Inc. for the purpose of soliciting
investments from members of the public. In connection with his guilty plea, Rubi admitted that he made
fraudulent representations that investor funds would be used to purchase and resell Federal Reserve notes in
an international trading program. In actuality, no such international trading program existed. Millions of
dollars of investor funds were used instead to pay the periodic returns that investors received and to make
unsecured investments. Rubi also intentionally concealed from investors the fact that millions of dollars of
investor funds were converted for his own personal use and benefit.The Drug Enforcement Agency (DEA) and
U.S. Attorney’s Office in New York completed in 2002 a “long-term investigation targeting the money
laundering and narcotics activities of the Khalil Kharfan Organization operating in Colombia, Puerto Rico,
Florida, and the New York Tri-State area.” Initial statements by the agencies indicated that more than $100
million in narcotics proceeds were laundered in the scheme. The organization used members to open fictitious
businesses, which they used for the deposit and transfer of money between countries. Approximately $1
million has been recovered.In 2002, a California jury convicted two principals in a Costa Rican tax evasion-
money laundering ring. Wayne Anderson, 62, and Richard Marks, 58, were arrested in one of the largest
undercover stings in IRS history. The two men were charged with conspiracy to launder $470,000, mostly
through offshore trusts that concealed millions of dollars for U.S. taxpayers who wanted to evade U.S. taxes.
The case resulted in seven federal convictions. “A Nashville, Tennessee man was sentenced to 20 years in jail
for his three-year role in a large-scale cocaine distribution and money laundering organization in the Nashville
area. The individual pled guilty to conspiracy to commit money laundering and conspiracy to distribute
cocaine. The defendant used several vehicles with sophisticated hidden compartments to transport the cocaine
and the proceeds to pay for it back and forth between Chicago and Nashville.” “On June 21, 2002 a federal
jury in North Carolina convicted Mohamad Hammoud and his brother Chawki, Lebanese immigrants, for
providing material support to the terrorist group Hezbollah through racketeering, conspiracy, and conspiracy
to commit money laundering by funneling profits from a cigarette smuggling operation. In March 2002,
several of the Hammoud’s co-defendants pled guilty in North Carolina federal court to racketeering,
conspiracy, and conspiracy to commit money laundering for funneling profits from their cigarette smuggling
operation to purchase military equipment for the Hezbollah terrorists. The case began when the West Virginia
State Police seized a significant quantity of contraband cigarettes. The Federal indictment alleged that millions
of dollars worth of cigarettes were smuggled out of North Carolina to resell in States, including Michigan,
where higher State taxes greatly increase the sales price.”

The Response/Current Efforts

Legislation and Regulation The U. S. has imposed a number of legislative and regulatory standards to deter
money laundering. The most significant of these are the following:

       The Bank Secrecy Act (BSA), signed into law in October 1970, implemented a reporting system for
        large financial transactions (over $10,000) to monitor and deter the flow of criminally obtained
        proceeds. (Codified 31 U.S.C. §§ 5311-5330)

      The Money Laundering Control Act of 1986 amended the BSA and specifically made money laundering
       – spending, saving, transporting, or transmitting proceeds of criminal activity – a federal felony.
       (Codified 18 U.S.C. §§ 1956 and 1957)
      The Anti-Drug Abuse Act of 1988 increased the penalties and sanctions for money laundering crimes
       and amended the money laundering provisions of 18 U.S.C. § 1956 to include financial transactions
       with the intent to violate § 7201 (attempted tax evasion) or § 7206 (false tax return) of the Internal
       Revenue Code of 1986 (26 U.S.C.). (Pub. L. 100-690)
      The Racketeer Influenced and Corrupt Organizations (RICO) Act identified violations of money
       laundering statues as “predicate offenses” that constitute racketeering activity and provided for both
       civil and criminal actions against violators. (Codified 18 U.S.C. §§ 1961-1968)
      The Money Laundering and Financial Crimes Strategy Act of 1998 required that the Secretary of the
       Treasury coordinate and implement a national strategy to address money laundering. (Pub. L. 105-
      The USA PATRIOT Act of 2001 established new rules and responsibilities affecting financial institutions
       and commercial businesses to prevent, detect, and prosecute terrorism and international money
       laundering. For example, the Act required banks to actively monitor customer transactions, expanded
       the ability of public and private institutions to share information, and increased civil and criminal
       penalties for money laundering. (Pub. L. 107-56)

Current            Efforts            To           Reduce              Money                Laundering
In 2005, the Drug Enforcement Agency (DEA) completed Operation Mallorca, an investigation into the use of
the Columbian Black Market Peso Exchange to launder drug money. Operation Mallorca resulted in the arrest
of 36 individuals and the seizure of 7.2 million dollars, 947 kilograms of cocaine, 7 kilograms of heroin, and
21,650 pounds of marijuana. In 2005, the multinational Organized Crime Drug Enforcement Task Force
completed Operation Cyber Chase, an investigation that targeted illegal Internet pharmacies. These
pharmacies used more than 200 websites to sell controlled substances internationally and to launder the
proceeds. Just one of the organizations involved used this system of web-based distribution to move
approximately 2.5 million dosage units of Schedule II-V pharmaceuticals (including Vicodin, amphetamines,
and anabolic steroids) permonth. “Operation Wire Cutter,” a two and a half year joint effort of U.S. and
Colombian law enforcement, uncovered a massive money laundering operation for several Colombian
narcotics cartels that channeled money through New York, Miami, Chicago, Los Angeles, San Juan, and Puerto
Rico using the Black Market Peso Exchange. The efforts resulted in 37 arrests – 29 in the U.S. and eight in
Colombia – as well as the seizure of more than $8 million, 400 kilos of cocaine, 100 kilos of marijuana, 6.5
kilos of heroin, nine firearms, and six vehicles. Since the attacks of September 11, 2001, efforts to reduce
money laundering – throughout the world – have increased significantly, with particular attention paid to
associations with terrorist activities. Effective September 24, 2001, for example, President Bush issued
Executive Order 13224, “blocking property and prohibiting transactions with persons who commit, threaten to
commit, or support terrorism.” Initially, 27 individuals and organizations were identified as Specially
Designated Global Terrorist (SDGT) entities under Executive Order 13224. By June 6, 2003, 282 individuals
and organizations had been identified as SDGTs, and over $137 million in associated assets had been frozen
worldwide. In July 2002, the second National Money Laundering Strategy issued by the U.S. Department of
the Treasury pointedly addressed the issue of money laundering as “integral to the war on terrorism.”
Specifically, the strategy (1) presented “government’s first plan to attack financing networks of terrorist
entities” and (2) focused on “the use of charities and other non-governmental organizations to raise, collect,
and distribute funds to terrorist groups.”

Penalties for Money Laundering Charges in Texas

Money laundering refers to the process of concealing financial transactions. Various laundering
techniques can be employed by individuals, groups, officials and corporations. The goal of a money laundering
operation is usually to hide either the source or the destination of money in connection with a criminal act.

Money laundering is a white collar crime that will be investigated by many different sources including: local,
state and federal investigators that may also include the Department of Justice, the State Department, the
Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS) and the Drug Enforcement Agency
(DEA). A person can be charged with money laundering if suspected of receiving, concealing, possessing,
transferring, transporting or having any interest in the proceeds of criminal activity. In fact a money
laundering charge can be filed against a person that has almost anything at all to do with the proceeds of a
criminal act. In Texas, money laundering charges have varied penalties depending on the amounts involved:

    1. Value from $3000 to $19,999 = third degree felony (2-10 years in prison plus a hefty fine if
    2. Value from $20,000 to $99,999 = second degree felony (2-20 years in prison plus a hefty
       fine if convicted)
    3. Value from $100,000 and up = first degree felony (5 to life years in prison plus a hefty fine
        if convicted)

There are several different types of money laundering charges you can face. Some are more serious than
others and could result in severe punishments and steep fines. In fact, if you are convicted of money
laundering, you could be forced to pay a fine up to twice the amount of the total dollar amount of funds
involved in the illegal activity.

It is important that you contact Dallas White Collar Crimes Lawyer Charles Johnson as soon as you are
aware of charges against you or a loved one. If you are confronted with federal charges, you will want an
experienced attorney who is familiar with federal court procedure as it is quite different from the state court
process. Attorney Charles Johnson is well-versed in both federal and state law and court
procedure. No matter what your money laundering charges or other white collar crime charges entail, you
can trust that he will prepare a solid defense on your behalf.

Defenses for Money Laundering Charges in Texas

       Absence of intent to commit a crime — Most crimes require intent to commit the crime. In terms
        of money laundering, people who are accountants, bankers, or others who deal with large amounts of
        money are often charged with money laundering without even knowing they committed a crime. If
        you can prove you were unaware the money obtained was illegal, then there is no way you can have
        intent to commit money laundering.
       Duress — Duress occurs when a person truly believes there will be some danger or harm if they do
        not participate in the crime. In money laundering, criminals often force accountants or bankers to
        launder illegally obtained money or else be subjected to harm. If this is the case, you will have a good
        duress defense (as the banker or accountant).
       Insufficient evidence — A criminal charge can be dismissed if there is insufficient evidence to
        prosecute. In money laundering, an intention to prevent illegally obtained funds from being traced to
        its origin is required for a conviction. A conviction also requires proving the money laundered came

       from a specific illegal activity. If one of these two things is missing, then there is a possibility this
       defense will work.

The main defense to Money Laundering is the defendant’s lack of knowledge that the funds were from an
unlawful activity. Attorney Charles Johnson may be able to establish that you did not intend to promote
unlawful activity or that the transaction was not designed to conceal the unlawful activity. This is usually a
valid defense when a person is merely an employee of a business, or a non-involved partner who is basically
“duped” into managing a business whose proceeds are the result of an illegal activity. This defense can be
supported with evidence from the company’s financial statements or accounting records showing material
misrepresentation or omissions, committed by someone else other than the defendant. Many times one
devious business partner will ask another partner to “sign off” on certain loan documents or tax returns
without telling the defendant that the information contained therein is false misleading. Just because a
defendant has signed off on paperwork that might be designed to cover up the source of money or funds does
not mean the defendant actually knew about the source of the funds. It is important to interview all of the
parties involved to ascertain the defendant’s good character and honesty and lack of control over this area of
the company’s finances, and to emphasize the partner’s bad character. Another defense is tracing the funds
involved in the transactions and proving that these specific funds did not fund, nor were the proceeds of, any
unlawful activity. The defenses for Money Laundering are quite complex (as are all white collar cases) and
involve many hours of records research by attorneys and expert witnesses. It is often beneficial to utilize a
“forensic accountant” to also go through the documents in order to defend against the Government’s

                                        Additionally, because the Charles Johnson Law Firm fights conviction
                                        from all angles, they will assert a wide range of defenses and
                                        challenges to constitutional violations that apply in all criminal cases.
                                        The possibilities are numerous and diverse. One of those is the
                                        “denial of right to Counsel”. This occurs when a suspect is in
                                        custody and requests to speak to their attorney, but is denied and
                                        questioning continues. Other defenses may include challenging the
                                        validity of any search warrant, or whether there were any
                                        “forensic flaws” during the investigation of your case. Depending on
                                        what else you have been charged with, this could include exposing
                                        flawed procedures regarding fingerprints analysis; computer
                                        analysis/cloning hard drive procedures; GPS tracking monitors;
                                        forensic financial accounting reviews; etc.. Lastly, one of the most
                                      common defense tactics is exposing sloppy or misleading police
reports which include everything from misstatements, false statements, flawed photo line-ups and inaccurate
crime scene reconstruction. It is important to hire a skilled Money Laundering lawyer to defend you who has
knowledge of all the possible defenses to assert in your case. While related charges can further complicate a
money laundering defense or other type of case, it is important to remember that just because you have
been accused, doesn’t mean you are guilty. Contact Dallas White Collar Crimes Lawyer Charles Johnson
immediately for your free phone consultation. Attorney Johnson will take your call 24/7 365 days/year at 214-
234-0111 to discuss your case. Put his knowledge to work for you.

Hire the Best Dallas Money Laundering Lawyer: Dallas White Collar Crimes
Lawyer Charles Johnson

At the Charles Johnson Law Firm, our attorneys possess the necessary skills and knowledge to successfully
defend individuals facing federal money laundering charges. Unless you retain counsel who will aggressively
investigate the matter on your behalf, you may have a poor chance of avoiding a lengthy prison term among
other severe consequences. Money laundering is a serious offense with potential long-term
consequences including jail time. When your future is at stake, contact the Leading Dallas Criminal Lawyer
at the Charles Johnson Law Firm. You can reach Attorney Johnson directly anytime night or day at 214-234-

Posts Related to Arrested for Money Laundering in Dallas? The Right Dallas
White Collar Crimes Lawyer Can Make a Difference in Your Case

      Arrested for Federal Drug Trafficking in Dallas? Select the Right Federal Drug Lawyer

       If you have been caught with drugs or accused of selling or trafficking in drugs, you may be charged
       under state or federal drug laws. ...

      Facing Federal Drug Conspiracy Charges? Choose The Right Dallas Criminal Lawyer

       All that a federal prosecutor needs to charge you with conspiracy is evidence that you agreed to
       commit an illegal act with another person. While ...

      Dallas Lawyer: Arrested for Distribution Of Cocaine?

       Felony charges for drug possession or distribution are the most typical felonies in criminal law. If
       you've been charged with possession or distribution of cocaine, ...

      Arrested For Child Pornography in Dallas? Hire the Right Dallas Criminal Lawyer

       Dallas Lawyer Charles Johnson aggressively defends clients charged with a sexual offense. He handles
       all sexual offense charges, whether in state or federal court, and ...

      Dallas Lawyer: Search and Seizure - What Law Enforcement Officials May and May NOT Do

       Dallas Search and Seizure Lawyer: The Charles Johnson Law Firm Although individuals within the U.S.
       are entitled to privacy and freedom from government intrusion, there ...

Original              article             may            be               found             at:
Arrested for Money Laundering in Dallas? The Right Dallas White Collar Crimes Lawyer Can Make a
Difference in Your Case

Dallas Lawyer Charles Johnson can be reached 24 hours a day, 7 days a week.
Call us at 713-222-7577 or toll free at 877-308-0100.
Major Credit Cards Accepted.

Dallas Lawyer Charles Johnson
Solving Problems...Every Day®


815 Walker Street #1047
Houston, TX 77002

E-Mail: charlesjohnson@dallaslawyer.com

Phone: (713) 222-7577
Toll-Free: (877) 308-0100

Map To Office


To top