Money laundering in California refers to the act of taking money earned through illegal activity—such as drug sales, fraud, theft, or embezzlement—and making it appear as though it came from a legitimate source. Under California Penal Code §186.10 and federal money laundering laws (18 U.S.C. §1956 and §1957), this crime involves knowingly conducting or attempting to conduct a financial transaction designed to conceal the origin, ownership, or control of criminal proceeds.
Common examples of money laundering include:
- Depositing cash from illegal sales into a business account to make it look like ordinary revenue
- “Structuring” deposits just under $10,000 to avoid federal reporting requirements
- Using wire transfers, shell companies, or crypto wallets to hide the movement of funds
- Purchasing high-value assets like vehicles or real estate with criminal proceeds
- Mixing illegal funds with legitimate earnings through a front business
Both state and federal prosecutors can pursue money laundering charges, and the penalties vary depending on the amount involved and whether the conduct crossed state or national lines. A conviction can result in heavy fines, asset forfeiture, and years in state or federal prison.
Even routine financial activity can attract suspicion if patterns suggest an attempt to disguise the source of money. Because intent is a key element, it’s possible for someone to face charges without realizing their actions meet the legal definition of money laundering.
If you’re being investigated or charged with money laundering in California, contact Simmons & Wagner, former prosecutors who understand how these cases are built—and how to challenge them.