Money laundering charges in San Diego threaten everything you've worked to build. These complex federal crimes can result in decades in prison and complete forfeiture of assets. The Federal Government uses sophisticated tools to track financial transactions and build cases. You need immediate legal assistance from attorneys who are well-versed in both federal law and California law.
Kenney Legal Defense specializes in defending money laundering cases throughout San Diego and Southern California. In fact, Attorney Karren Kenney is a Certified Fraud Examiner (CFE), certified through the Association of Certified Fraud Examiners, and specializes in handling money laundering and other fraud cases. Our criminal defense team has extensive experience with white-collar crime and federal court proceedings. We understand the Anti-Money Laundering laws that prosecutors use against our clients. Don't face these life-changing charges without experienced legal representation on your side.
Our San Diego Money Laundering Lawyers Defend Your Rights
At Kenney Legal Defense, we specialize in defending clients charged with money laundering in San Diego and throughout the Southern District of California. Our team has handled cases involving a wide range of issues, from drug trafficking to cryptocurrency fraud and tax compliance. Whether the case involves federal law or California law, we build robust defenses that are effective and robust. We're committed to making sure your rights are protected from start to finish. If law enforcement or federal agencies are after you, we're ready to fight back.
What is Money Laundering Under U.S. Law?
Money laundering means taking money from criminal activity and making it look legal. This process can involve bank transfers, shell companies, online transactions, or even real estate laundering. Under U.S. federal law, prosecutors must prove that you knew the money was illegal and that you tried to hide where it came from. Charges often involve the Money Laundering Control Act, U.S. Code § 1956, or California Penal Code section 186.10.
Money laundering often accompanies tax fraud, wire fraud, credit card fraud, or insurance fraud. The goal is to move illegal funds through a system that looks clean—whether that's a small business, virtual currency transactions, or even the cannabis industry. If federal agents think you tried to clean dirty money, they'll use everything from Suspicious Activity Reports to bank statements as evidence.
Common Money Laundering Offenses in San Diego
Money laundering in San Diego can take many forms. Some people try to move money using fake businesses. Others break big transfers into smaller ones to avoid attention. These acts often raise red flags with the Financial Crimes Enforcement Network (FinCEN) or the Internal Revenue Service (IRS).
Some of the most common charges include:
- Structuring deposits to avoid bank reporting limits
- Hiding money through shell companies
- Using Bitcoin or cryptocurrency to cover tracks
- Ties to organized crime, like cartels or gang networks
- Money tied to auto insurance fraud, welfare fraud, or check fraud
Depending on the case, you could face charges in both federal court and state court. That means exposure to harsher penalties and more serious consequences.
Structuring or “Smurfing”
Structuring—also known as “smurfing”—happens when someone breaks up large cash deposits into smaller amounts. The goal is to avoid bank reporting rules under the Bank Secrecy Act. For example, someone might deposit $9,000 instead of $10,000 to dodge a Currency Transaction Report or Form 8300. This can lead to serious federal charges.
Using Shell Companies for Concealment
A shell company is a business that doesn't operate independently but is used to move or conceal money. Criminals use them to cover up drug money laundering or other illegal funds. If you're accused of using shell companies, you could face charges under 18 U.S.C. §§ 1956 or Penal Code § 186.10. These charges often involve subpoenaed employees and internal investigations.
International Money Laundering
Money laundering that crosses borders—like wiring funds to Mexico City or an offshore account—is treated even more seriously. International taxation laws, the Border Cash Transaction Rule, and the United States Act of Congress may apply. These cases involve federal agents and international tracking systems. If your case crosses borders, the penalties go up.
Penalties for Money Laundering in San Diego
If you're convicted of money laundering in San Diego, the penalties are harsh. Under federal law, you could face lengthy prison terms, substantial fines, and asset forfeiture. Even state-level charges under California Penal Code § 186.10 carry major consequences.
You may face:
- Up to 20 years in prison under U.S. federal law
- Fines up to $500,000 or twice the value of the money involved
- Loss of homes, cars, or business assets tied to the crime
- A strike on your record under the Aggravated White-Collar Crime Enhancement
These penalties depend on the amount of money involved, the number of transactions, and whether you're tied to other crimes, such as identity theft or bank fraud.
Federal vs. State Penalties
Federal penalties are usually more severe than state ones. The Federal Government, including agencies such as the U.S. Department of Justice, the FBI, or the Securities and Exchange Commission, often handles large-scale cases. Federal charges may include conspiracy, fraud, and federal money laundering, with longer sentences under the United States Sentencing Commission Guidelines Manual. California also prosecutes under Penal Code § 186.10, but prison terms are often shorter.
Criminal Asset Forfeiture
If the government believes that your money or property is tied to illegal activities, they can seize it. This is known as criminal asset forfeiture. It's common in cases involving drug trafficking, constructive fraud, or bitcoin industry schemes. Your car, house, or business bank account could be seized before you're even convicted.
Legal Defenses Against Money Laundering Charges in San Diego
Being charged doesn't mean you're guilty. Several defenses can be effective in criminal cases involving fraud and money laundering. The strongest defenses target weak evidence, false claims, or flaws in the case's construction.
Common defenses include:
- No intent to commit a crime
- Lack of knowledge about the illegal source of money
- Errors in how the funds were tracked
- Invalid search or seizure by a law enforcement officer
- False statements or fake records made by others
A good criminal defense lawyer will study every part of your case. We'll examine your financial records and push to get weak evidence thrown out.
Lack of Knowledge or Intent
To convict you of laundering, the government must prove you knew the money was dirty. If you didn't know—or didn't mean to hide it—your lawyer can argue for reduced charges or even dismissal. This is common in cases involving I-9 audits, new hires, or informal business deals.
Mistaken Identity or False Allegations
Sometimes, people get caught up in someone else's scheme. In other cases, a co-worker, partner, or business rival may make false allegations. If you were wrongly accused, we'll challenge the facts and the identity of the person responsible.
Invalid Search or Seizure
The government must follow strict rules when gathering evidence. If they searched your property without a warrant or seized bank records without cause, that evidence could be thrown out. Many white-collar criminal defense cases are won this way.
The Money Laundering Legal Process in San Diego
A money laundering case doesn't happen overnight. It starts with a tip or a Suspicious Activity Report, followed by months of tracking and paperwork. Here's what the process looks like:
- Investigation and arrest
- Filing of formal charges
- Pretrial motions to challenge evidence
- Possible plea bargaining
- Trial before a judge or federal jury
At each step, your lawyer fights to protect your rights. No matter what your situation is, we build a custom strategy.
Investigation and Arrest for Money Laundering
Investigations can start with banks, the IRS, or a report to the Fraud and Economic Crimes Division. You may be contacted, served with a subpoena, or arrested outright. If that happens, call a money laundering defense attorney in San Diego immediately.
Pretrial Motions and Plea Bargaining
Before trial, we may file motions to block bad evidence or dismiss charges. Many cases don't go to trial. Instead, we negotiate with the prosecution for lighter sentences, using facts that show you were not involved or had no intent.
Going to Trial for Money Laundering
If your case goes to trial, we'll stand with you in federal court or state court. We'll question witnesses, examine bank logs, and challenge expert testimony. Our goal is to show the jury there's insufficient evidence to convict you.
Why Choose Our San Diego Money Laundering Lawyers?
At Kenney Legal Defense, we've handled some of the most complex financial crime cases. Our team understands how the U.S. Code, California law, and anti-money laundering laws are applied in real-world scenarios. We've defended cases involving millions of dollars, methamphetamine operations, and international transactions.
FAQs
What is considered money laundering in California?
Money laundering occurs when someone conceals money obtained through illegal activities. This includes things like drug trafficking, credit card fraud, or identity theft.
What are the penalties for a money laundering conviction in San Diego?
You could face up to 20 years in prison, huge fines, and the loss of your assets through asset forfeiture.
Can I be charged with money laundering if I didn't know the money was illicit?
Lack of knowledge or intent is a strong defense against charges. If you didn't know the money was tied to the crime, a lawyer can argue for dismissal or reduced charges. However, in federal court, there is a theory of liability called “deliberate ignorance” or “willful blindness” that may support a conviction. This theory of liability does not exist in state court. It involves “red flags” that are based upon circumstantial evidence that will need to be addressed in federal criminal proceedings.
What should I do if I am being investigated for money laundering?
Do not speak to law enforcement without a criminal defense lawyer. Save your financial records and contact a lawyer immediately.
How long do money laundering cases typically take to resolve?
Cases can take months or even years to resolve. Timelines depend on the amount of money, the number of people involved, and whether a trial is held.
Can a money laundering charge be expunged from my record in California?
Some convictions may qualify for expungement under California law, but federal convictions stay on your record. A lawyer can help check your eligibility.
Contact Our San Diego Money Laundering Lawyers for a Free Case Evaluation
If you're under investigation or facing money laundering charges, don't wait. Call Kenney Legal Defense today for a Free Consultation. We handle tough cases across San Diego and the Southern District of California. Our team knows how to challenge the government's case and protect your future. We fight hard to win!