Money Laundering Lawyer in Fort Worth

Federal Money Laundering Statutes: Sections 1956 & 1957

Federal prosecutors rely on two primary statutes. The difference between them matters because the charges determine the penalties and the elements the government must prove at trial.

18 U.S.C. § 1956: The Core Money Laundering Statute

Section 1956 covers four categories of conduct: promotional laundering (using proceeds to advance a criminal enterprise), concealment laundering (disguising the source of funds), structuring transactions to evade reporting requirements, and laundering to avoid federal or state tax liability. All four require that the funds originate from a designated predicate offense, which includes drug trafficking, fraud, and a broad list of other federal crimes.

To convict under Section 1956, prosecutors must prove the defendant knew the property involved was proceeds of some form of unlawful activity. They don’t have to prove the defendant knew which specific crime generated the funds. That lower knowledge threshold is one reason these charges can be easier to bring than many defendants expect. Conspiracy under Section 1956(h) requires only an agreement between two or more people and no overt act beyond that agreement.

18 U.S.C. § 1957: Monetary Transactions in Criminally Derived Property

Section 1957 is narrower in scope but broader in application. It prohibits conducting a monetary transaction of more than $10,000 in criminally derived property, regardless of intent to conceal. Any deposit, withdrawal, transfer, or exchange involving a financial institution can qualify. Unlike Section 1956, prosecutors don’t need to show the defendant intended to hide anything. Knowingly using the funds in a qualifying transaction is enough.

Penalties for a Federal Money Laundering Conviction

The sentencing exposure in these cases is severe. A conviction under Section 1956 carries a maximum of 20 years in federal prison and a fine of up to $500,000 or twice the value of the transaction, whichever is greater. A Section 1957 conviction carries up to 10 years in prison and a fine of up to the greater of $250,000 or twice the amount involved. Beyond incarceration and fines, federal law authorizes criminal and civil asset forfeiture of any property involved in or traceable to a violation, and supervised release of up to three years can follow a Section 1956 prison term. These penalties compound quickly when related charges, such as fraud or conspiracy, accompany the money laundering counts.

How Federal Financial-Crime Investigations Unfold

The FBI and IRS Criminal Investigation division frequently lead federal financial-crime investigations, sometimes coordinating with local law enforcement. These investigations are typically well underway before the subject knows they exist. The first signal is often a subpoena for financial records or a target letter from the U.S. Attorney’s Office, both of which indicate the government has already identified you as a focus of the investigation.

Two mistakes made during this period can create lasting damage to a defense. First, destroying documents or electronic data after receiving a subpoena, or once you become aware of an investigation, can result in a separate obstruction charge under federal law. Second, responding to subpoenas or speaking with investigators before consulting an attorney creates a record prosecutors can use at trial. Both mistakes are avoidable. Blake & Blake, LLP advises clients on how to respond to legal requests, preserve their rights, and avoid conduct that escalates their exposure before charges are ever filed.

Defense Strategies in Money Laundering Cases

Because Section 1956 requires proof that the defendant knew funds were connected to unlawful activity, contesting that knowledge is a central defense avenue. Many financial-crime defendants had legitimate business reasons for the transactions at issue. Others received funds through third parties without full knowledge of their origin. Building a defense around what the defendant actually knew, and what the evidence actually shows, is often more productive than disputing whether the transactions occurred at all.

Blake & Blake, LLP’s defense strategies in financial-crime cases center on challenging intent, the accuracy of financial records, and the defendant’s actual role in the conduct the government attributes to them. The firm works with forensic accountants to reconstruct transactions and identify alternative explanations for unusual account activity. Financial records that appear incriminating in isolation often look different in full context, particularly when Bank Secrecy Act and FinCEN reporting requirements create compliance complexities that even well-intentioned actors navigate imperfectly.