Dallas Money Laundering Lawyer
Money laundering in Texas is a felony offense that can result in up to 99 years in prison depending on the amount of money involved. Under Texas Penal Code Chapter 34, you can face charges for knowingly handling, concealing, or transferring proceeds from criminal activity. If you’re under investigation or facing charges, contact a Dallas money laundering lawyer at Varghese Summersett immediately at 214-903-4000 for a free consultation.
What Is Money Laundering Under Texas Law?
Texas Penal Code Section 34.02 defines money laundering as knowingly acquiring, maintaining, concealing, possessing, transferring, or transporting proceeds from criminal activity. The law also covers conducting, supervising, or facilitating any transaction involving those proceeds. In practical terms, money laundering means making illegally obtained money appear legitimate.
The “proceeds of criminal activity” includes money or assets gained from any felony under Texas, federal, or other state law, or any offense punishable by more than one year of confinement.
How Does Money Laundering Work?
Money laundering typically follows three stages, though these are not formal legal elements of the offense:
Placement involves introducing illegal cash into the financial system. This might mean breaking large amounts into smaller deposits, purchasing money orders, or using cash-intensive businesses to blend dirty money with legitimate revenue.
Layering makes the money harder to trace. Launderers move funds through multiple accounts, wire transfers, shell companies, or offshore accounts. They may purchase high-value assets like real estate, vehicles, or jewelry that can later be sold.
Integration merges the now-clean money back into the legitimate economy. At this stage, the funds can be invested in businesses, real estate, or other assets without raising suspicion.
Texas Money Laundering Penalties
Texas classifies money laundering offenses based on the value of funds involved. Under Texas Penal Code Section 34.02:
| Value of Funds | Offense Level | Prison Time | Maximum Fine |
|---|---|---|---|
| $2,500 to $29,999 | State Jail Felony | 180 days to 2 years | $10,000 |
| $30,000 to $149,999 | Third-Degree Felony | 2 to 10 years | $10,000 |
| $150,000 to $299,999 | Second-Degree Felony | 2 to 20 years | $10,000 |
| $300,000 or more | First-Degree Felony | 5 to 99 years or life | $10,000 |
A first-degree felony conviction carries the same potential sentence as murder in Texas. These charges demand experienced legal representation from day one.
What Must Prosecutors Prove?
To convict you of money laundering in Texas, prosecutors must prove three elements beyond a reasonable doubt:
Knowledge. You must have knowingly engaged in the prohibited conduct. Accidental or unknowing involvement in a laundering scheme is not enough for a conviction.
Handling proceeds. You must have acquired, maintained, concealed, possessed, transferred, or transported money or assets gained from criminal activity. This covers everything from physically moving cash to transferring digital funds.
Transaction involvement. You conducted, supervised, or facilitated a transaction involving criminal proceeds. This includes providing a location, bank account, or other means for the transaction to occur.
Federal Money Laundering Charges
Federal money laundering laws under 18 U.S.C. § 1956 and 18 U.S.C. § 1957 carry even harsher consequences. Section 1956 prohibits financial transactions designed to promote unlawful activity or disguise the source of illegal funds. Section 1957 prohibits transactions involving more than $10,000 in criminally derived money.
A federal money laundering conviction carries up to 20 years in prison and fines up to $500,000. Federal authorities can also seize money and property through civil asset forfeiture, meaning you could lose assets even before trial. For more information, visit our federal money laundering defense page.
Defenses to Money Laundering Charges
Money laundering cases often involve complex financial transactions that appear suspicious but are entirely legal. An experienced Dallas money laundering attorney can analyze the evidence and build a defense strategy tailored to your situation.
Common defenses include:
- No criminal proceeds. The funds came from legitimate sources, not criminal activity.
- Lack of knowledge. You did not know the money was connected to illegal activity.
- No financial transaction. The alleged conduct does not meet the legal definition of a covered transaction.
- Merger doctrine. The underlying offense and the money laundering charge are so intertwined that separate prosecution is improper.
- Entrapment. In sting operations, law enforcement induced you to commit a crime you would not otherwise have committed.
Federal prosecutors frequently use undercover operations to build money laundering cases. These investigations require careful scrutiny to identify constitutional violations and evidentiary weaknesses.
Recent Texas Money Laundering Cases
Texas prosecutors aggressively pursue money laundering charges across a range of schemes. Recent cases include prosecutions related to fraudulent Paycheck Protection Program (PPP) loans during the COVID-19 pandemic. In another high-profile matter, federal authorities targeted $58 million in Texas real estate allegedly purchased with funds stolen by Mexican government officials.
These cases demonstrate how money laundering charges can arise from many types of underlying criminal activity, from fraud to public corruption.
Why Choose Varghese Summersett?
Our Dallas criminal defense team includes former prosecutors and board-certified specialists with decades of experience defending financial crimes. We understand how federal and state investigators build money laundering cases, and we know how to challenge their evidence at every stage.
When your freedom and financial future are at stake, you need attorneys who have handled complex white-collar cases in Dallas County, Tarrant County, and federal courts across Texas. Our team has secured dismissals, reductions, and acquittals in cases involving millions of dollars.
Frequently Asked Questions
What is the minimum amount for money laundering charges in Texas?
Under Texas Penal Code Section 34.02, money laundering charges require the funds to be valued at $2,500 or more. Amounts below this threshold may still result in other criminal charges depending on the underlying conduct.
Can I be charged with money laundering if I didn’t know the money was illegal?
Knowledge is a required element. Prosecutors must prove you knew the funds were proceeds of criminal activity. However, “willful blindness” (deliberately avoiding knowledge) can satisfy this requirement in some cases.
What is the difference between state and federal money laundering charges?
Texas charges apply when the alleged conduct violates state law and typically stays within Texas borders. Federal charges under 18 U.S.C. §§ 1956-1957 apply when the scheme crosses state lines, involves federal programs, or meets other federal jurisdictional requirements. Federal penalties are often more severe.
How long do money laundering investigations take?
Financial crime investigations can last months or years before charges are filed. If you learn you’re under investigation, contact a lawyer immediately. Early intervention can sometimes prevent charges altogether.
Can the government seize my assets before trial?
Yes. Both Texas and federal law allow civil asset forfeiture, meaning authorities can seize money, vehicles, real estate, and other property they believe is connected to money laundering. You may have to prove the assets were legally obtained to recover them.
Contact a Dallas Money Laundering Lawyer Today
Money laundering charges can destroy your career, your finances, and your freedom. The prosecution will have forensic accountants, federal agents, and virtually unlimited resources working against you. You need defense attorneys who have the experience and resources to fight back.
The criminal defense team at Varghese Summersett has helped clients facing state and federal financial crime charges throughout Texas. Call 214-903-4000 today for a free and confidential consultation with a Dallas money laundering lawyer.
