Money laundering investigations don’t happen overnight—they build quietly, layer by layer, often long before the accused even realize they’re under scrutiny. By the time law enforcement makes contact, the government has already gathered months—sometimes years—of financial data and testimony.
Understanding how prosecutors build these cases is crucial to protecting yourself and your business before it’s too late.
Step 1: The Investigation Begins
Most money laundering cases start with a trigger event: a bank’s Suspicious Activity Report (SAR), an unrelated criminal probe, or a flagged transaction pattern. From there, agencies like the IRS Criminal Investigation Division (IRS-CI) and the Department of Justice (DOJ) begin quietly gathering evidence.
They analyze bank records, tax filings, wire transfers, and business ledgers—often using FinCEN (the Financial Crimes Enforcement Network) to trace money through multiple accounts and entities. These agencies work in tandem, sharing information to map the full picture of the alleged “money flow.”
The goal at this stage isn’t just to find illegal money—it’s to connect that money to you.
Step 2: The Grand Jury Process
Once investigators believe they’ve established a pattern of suspicious activity, they take their findings to a federal grand jury. This is a confidential proceeding where prosecutors present evidence to a panel of citizens behind closed doors.
You typically won’t even know this is happening. The government may issue subpoenas to your bank, accountant, or business partners to collect more documents without alerting you. The grand jury’s role is to determine whether there’s enough probable cause to move forward with formal charges—not whether you’re guilty.
This process can last weeks or months, and by the end, prosecutors often emerge with an indictment—a formal charge that can drastically change your life and your business overnight.
Step 3: Asset Seizure and Freezes
Before the indictment becomes public, the government may freeze or seize assets connected to the investigation. This is one of the most devastating parts of the process, especially for legitimate business owners.
Under civil forfeiture laws, prosecutors don’t even need a conviction to take property they believe is “connected” to illegal proceeds. That means your bank accounts, vehicles, or even real estate could be held until the case resolves—leaving you unable to operate or defend yourself effectively.
An experienced defense attorney can challenge these seizures early, forcing the government to justify its claims before the damage becomes permanent.
Step 4: Indictment and Formal Charges
Once an indictment is filed, the case moves into public view. You’ll receive notice of the charges and be summoned to appear in court. The prosecution’s narrative will already be built: that you knowingly conducted financial transactions involving the proceeds of illegal activity.
But here’s where the burden of proof becomes critical.
To secure a conviction, prosecutors must show:
- Knowledge – That you knew the money came from unlawful activity.
- Intent – That you acted to conceal or disguise the source or ownership of those funds.
- Connection – That the funds were, in fact, derived from a specific illegal act.
These elements may sound straightforward, but proving them beyond a reasonable doubt is often much harder than it appears—especially when legitimate business transactions overlap with alleged wrongdoing.
The Government’s Playbook
Money laundering prosecutions rely heavily on financial forensics and circumstantial evidence. Agents reconstruct timelines, trace transfers, and use complex spreadsheets to tell a story of concealment.
But even the most detailed case can contain flaws—missing records, misinterpreted data, or unreliable witnesses. A single weak link can dismantle the entire narrative if challenged by the right defense strategy.
Why Experienced Defense Makes the Difference
When your case reaches this level, you need representation that knows both sides of the courtroom. At Simmons & Wagner, our attorneys are former Orange County prosecutors who’ve built—and dismantled—cases just like this. We understand the government’s tactics, what evidence truly holds weight, and how to identify cracks in even the strongest-looking indictments.
From freezing orders to trial preparation, our team works to uncover procedural errors, challenge assumptions, and fight for your financial and personal freedom.
The Takeaway with Simmons & Wagner
Money laundering cases are built like puzzles—piece by piece, in silence, until the picture seems complete. But every puzzle has gaps, and those gaps can mean the difference between conviction and exoneration.
If you believe you’re being investigated or have already been indicted, remember: an experienced defense can expose weak links in the government’s case. The earlier you act, the stronger your position becomes.