Money laundering is an illegal financial transaction designed to disguise illicitly obtained money and its source and destination. Money laundering usually occurs in connection with another crime that produces illicit income, such as drug trafficking, theft, arms trafficking, identity theft, and other types of fraud.
Money laundering returns illicit funds to the legitimate economy through illegal financial transactions so authorities cannot trace the laundered money or punish the individual participating in the associated criminal activity.
If you are facing money laundering charges, you face a lengthy prison term and fines for violating both federal and New Jersey laws if convicted. Anyone indicted for money laundering in New Jersey needs a skilled criminal defense attorney who is experienced with state and federal white-collar criminal defense.
The money laundering defense lawyers at the Law Offices of Jonathan F. Marshall in New Jersey have decades of experience representing New Jersey residents charged with money laundering and other alleged crimes. Call us at 877-534-7338 today to schedule a free consultation with a New Jersey money laundering attorney.
How Money Laundering Charges Work in New Jersey
New Jersey law defines the crime of money laundering at NJ Rev Stat § 2C:21-25 (2023). The statute makes it illegal to engage in, direct, manage, or finance any activity involving property derived from illegal activity that is designed to:
- Conceal or disguise the nature, location, source, ownership, or control of illegal money or property derived from criminal activity;
- Avoid a tax reporting requirement under New Jersey law or any other state or federal law.
Money laundering includes any of the following:
- Transporting or possessing property you knew or should have known was acquired by illegal activity.
- Intentionally avoiding reporting requirements for the money or property involved.
- Directing, controlling, or being responsible for transporting money that you knew came from criminal activity.
- Making a transaction with the illegally obtained money or property with the intent to:
- Commit money laundering or promote criminal activity
- Conceal the source or ownership of the money or property
- Avoid necessary reporting of the transaction.
Under State v. Diorio, 83 A. 3d 831 – NJ: Supreme Court 2014, to obtain a money laundering conviction, a prosecutor must prove:
- The commission of a criminal act that generated money or property; and
- The use of the proceeds in a manner intended to conceal its criminal origin or to wash it so it appears to be from a legal enterprise.
Some of the terms and concepts that may come up in a money laundering case include:
- Placement, which means getting illegally obtained funds into the legitimate banking system. There are numerous ways of transferring funds, ranging from simply spending it to putting it in a trust to conceal ownership, investing in offshore companies, or physically taking cash abroad and wiring it back to the United States. Smurfing refers to making many small financial transactions with dirty money using several different accounts.
- Layering refers to repeating a placement technique numerous times with small amounts of money to make tracing the money difficult.
- Integration occurs when the individual or organization takes the laundered money from a legitimate account and uses it for any purpose.
Penalties for Money Laundering Charges in New Jersey
In New Jersey, money laundering offenses may be filed as first-degree, second-degree, or third-degree offenses, depending on the amount of money involved.
Engaging in money laundering involving property with a value of $500,000 or more is a first-degree offense. It is punishable by 10 to 20 years in prison and a maximum fine of $200,000 or three times the value of the property involved, whichever is more. For a first-degree offense, the court must also impose a mandatory minimum term of imprisonment without eligibility for parole equal to at least one-third and as much as one-half of the sentence imposed.
If the value is at least $75,000 but less than $500,000, it is a second-degree offense. A conviction of second-degree money laundering is punishable by 5 to 10 years in prison and a fine of $150,000 or three times the value of the property laundered, whichever is more.
Money laundering is a third-degree offense if the value is less than $75,000. It is punishable by up to 5 years in prison and a fine of $15,000 or three times the value of the property laundered, whichever is more.
A defendant with a clean record who has been charged with third-degree money laundering may be eligible for Pretrial Intervention, a diversionary probation program for nonviolent offenders. However, guidelines for Pretrial Intervention say defendants engaged in organized criminal activity or a continuing criminal enterprise are not eligible for the program.
A sentence imposed for money laundering must be served consecutively to any prison term imposed for the underlying criminal activity.
The federal money laundering statute, 18 U.S. Code § 1956, provides that engaging in money laundering is punishable by a fine of up to $500,000 or twice the value of the property involved in the illegal transaction, or imprisonment for up to 20 years, or both. An individual convicted in federal court may also be assessed a civil penalty equal to the value of the property, funds, or monetary instruments involved in the illegal transaction.
Accused Of Money Laundering? Here’s What To Do
If you have been arrested on New Jersey state or federal money laundering charges, you should decline to answer questions posed by investigators and contact a criminal defense lawyer as soon as possible.
You need a strong, dedicated legal defense crafted by experienced New Jersey money laundering attorneys. The criminal defense team at the Law Offices of Jonathan F. Marshall is made up of former prosecutors and public defenders who have handled money laundering cases in courtrooms across New Jersey. Lead attorney and firm founder Jonathan F. Marshall was an accountant before he began practicing law. He can apply insights from both fields to develop an effective money laundering defense strategy.
As your New Jersey money laundering defense lawyers, we can:
- Thoroughly investigate the charges against you
- Build a money laundering defense strategy tailored to your specific case
- Negotiate with prosecutors on your behalf
- Represent you effectively in court
As your attorneys, the Law Offices of Jonathan F. Marshall can take quick action aimed at avoiding charges or ensuring that charges against you are filed in New Jersey state courts rather than federal courts. Through our decades in state courtrooms across the state and federal courts in Camden, Newark, and Trenton, NJ, we have developed the kinds of professional relationships necessary to negotiate and obtain agreements that benefit our clients in money laundering cases.
With prompt engagement from a money laundering defense lawyer, it may be possible to have charges dismissed or reduced to limit the laundering money penalties. As former prosecutors, we can quickly spot weaknesses in a case and proceed to rebut the prosecution’s evidence if you have already been indicted.
Money Laundering Defense Strategies in New Jersey
When defending you against money laundering charges, we can attack the charges based on flawed testimony or lack of credibility among witnesses, who may be alleged co-conspirators or undercover agents who investigated the alleged money laundering plot. Evidence and testimony may conflict about:
- The allegedly illegal source of the funds
- Your knowledge that the money was illegally obtained
- Your intent to conceal the money, its disposition or amount
- Whether the money was concealed.
We can question the amount of money involved, especially if the prosecution’s case is based on forensic accounting rather than recovered cash and legitimate receipts. Establishing that lesser amounts of money were involved would lighten potential penalties, as well as call into question the legitimacy of the government’s case. Depending on the amount, we might be able to argue that the acts alleged do not meet the threshold for money laundering charges.
If wrongdoing has occurred, we can negotiate with prosecutors to determine whether a plea bargain to reduce the charges in exchange for cooperation is in your best interests. Sometimes, if there are alleged co-conspirators who face more serious charges, we can leverage our client’s knowledge of the case to convince the government to reduce charges.
Our defense attorneys will advise you of any offers made by prosecutors and the pros and cons of agreeing to plead guilty. The decision to enter a plea is always the client’s decision. Our defense team is always prepared to fight charges in court.
If we cannot halt prosecution, the state must prove that the money involved was derived from illegal activity, that you knew the money came from criminal activities, and that you intended to conceal the illegal funds and their source. We will challenge the prosecution’s evidence at every turn.
Contact A New Jersey Money Laundering Defense Attorney Today
At the first sign you are under investigation for money laundering in New Jersey, you should act quickly to engage a qualified New Jersey money laundering defense lawyer. An indictment for money laundering can lead to prison time and fines, so you need a strong defense to avoid harsh penalties. The white-collar crime attorneys of The Law Offices of Johnathan F. Marshall have the skill and resources to defend you and see your case through to the best possible conclusion.
Schedule a free consultation with our respected New Jersey money laundering defense lawyers now.
