NY Penal Law § 470.10: Money laundering in the third degree

In order to hide proceeds from criminal activity such as drug dealing, those involved in the criminal activity take steps to convert money received from the criminal conduct into money that appears to be from legitimate sources. This is called money laundering. If you are suspected of money laundering the specific charge you will face will depend largely on the amount of money involved and the purpose of the money laundering. Under New York Penal Law § 470.10 you could be prosecuted for money laundering in the third degree if you:

1. Know that a financial transaction represents the proceeds of criminal conduct and you
   1. Conduct at least one financial transaction with intent to carry on the criminal conduct or with intent to violate federal tax law,
   2. Conduct at least one financial transaction knowing that it was designed to hide the nature, location or control of the criminal conduct
   3. Conduct at least one financial transaction that is designed to avoid required transaction reporting and the amount of the transaction or transactions exceeds $10,000
2. Know that at least one money instrument represents the proceeds of criminal conduct and you transport the money instrument with intent to:
   1. Promote carrying on the criminal conduct
   2. Hide the nature, location or control of the criminal conduct
   3. Avoid transaction reporting and the amount of the money instrument or instruments exceeds $50,000.
3. Conduct at least one financial transaction that:
   1. Involves property that is the proceeds of criminal conduct or property that was used to conduct or facilitate criminal conduct with intent to promote that conduct, hide the nature, location or control of the conduct or avoid transaction reporting and the transaction or transactions exceeds $50,000.

Example

Eddie runs an illegal gambling operation in the basement of a clothing store he owns. To hide the proceeds from the gambling, Eddie falsifies transactions for his clothing store so that it appears as if the gambling money was actually from retail sales at the clothing store. For the a one month period Eddie made $65,000 from his gambling operation which was equal to the $65,000 that he claimed he made in sales from his clothing store for the same period. Eddie could be prosecuted for money laundering as the clothing store is merely a "front" to convert the money he obtained from his illegal gambling operation to legitimate profits.

Related Offenses

1. Money laundering in support of terrorism in the third degree: New York Penal Law § 470.22

Defenses

In order for you to be convicted of money laundering in the third degree, the prosecutor must prove that you had the intent to launder money. If you can show that you did not know that the money was derived from a criminal conduct, then you would not have had requisite intent to launder money.

Sentence

Money laundering in the third degree is a class D felony. If you are convicted of this crime your sentence may include up to 7 years in prison and 5 years of probation. In addition, New York Penal Law § 470.25 states that you can also be required to pay a fine of up to two times the amount of money involved in the money laundering scheme.

New York Penal Law § 470.10: Money laundering in the third degree

A person is guilty of money laundering in the third degree when:

1. Knowing that the property involved in one or more financial transactions represents:

   1. the proceeds of the criminal sale of a controlled substance, he or she conducts one or more such financial transactions which in fact involve the proceeds of the criminal sale of a controlled substance: (i) With intent to: (A) promote the carrying on of specified criminal conduct; or (B) engage in conduct constituting a felony as set forth in section eighteen hundred three, eighteen hundred four, eighteen hundred five, or eighteen hundred six of the tax law; or (ii) Knowing that the transaction or transactions in whole or in part are designed to: (A) conceal or disguise the nature, the location, the source, the ownership or the control of the proceeds of specified criminal conduct; or (B) avoid any transaction reporting requirement imposed by law; and (iii) The total value of the property involved in such financial transaction or transactions exceeds ten thousand dollars; or

   2. the proceeds of criminal conduct, he or she conducts one or more such financial transactions which in fact involve the proceeds of specified criminal conduct: (i) With intent to: (A) promote the carrying on of criminal conduct; or (B) engage in conduct constituting a felony as set forth in section eighteen hundred three, eighteen hundred four, eighteen hundred five, or eighteen hundred six of the tax law; or (ii) knowing that the transaction or transactions in whole or in part are designed to: (A) conceal or disguise the nature, the location, the source, the ownership or the control of the proceeds of criminal conduct; or (B) avoid any transaction reporting requirement imposed by law; and (iii) The total value of the property involved in such financial transaction or transactions exceeds fifty thousand dollars; or

2. Knowing that one or more monetary instruments represent:

   1. the proceeds of the criminal sale of a controlled substance, he or she transports, transmits, or transfers or attempts to transport, transmit or transfer, on one or more occasions, monetary instruments which in fact represent the proceeds of the criminal sale of a controlled substance from a place in any county in this state to or through a place outside that county or to a place in any county in this state from or through a place outside that county: (i) With intent to promote the carrying on of specified criminal conduct; or (ii) Knowing that such transportation, transmittal or transfer is designed in whole or in part to: (A) conceal or disguise the nature, the location, the source, the ownership or the control of the proceeds of specified criminal conduct; or (B) avoid any transaction reporting requirement imposed by law; and (iii) The total value of such monetary instrument or instruments exceeds ten thousand dollars; or

   2. the proceeds of criminal conduct, he or she transports, transmits, or transfers or attempts to transport, transmit or transfer, on one or more occasions monetary instruments which in fact represent the proceeds of specified criminal conduct from a place in any county in this state to or through a place outside that county or to a place in any county in this state from or through a place outside that county: (i) With intent to promote the carrying on of criminal conduct; or (ii) Knowing that such transportation, transmittal or transfer is designed in whole or in part to: (A) conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of criminal conduct; or (B) avoid any transaction reporting requirement imposed by law; and (iii) The total value of such monetary instrument or instruments exceeds fifty thousand dollars; or

3. He or she conducts one or more financial transactions involving property represented to be:

   1. the proceeds of the criminal sale of a controlled substance, or represented to be property used to conduct or facilitate the criminal sale of a controlled substance: (i) With intent to: (A) promote the carrying on of specified criminal conduct; or (B) conceal or disguise the nature, the location, the source, the ownership or the control of property believed to be the proceeds of specified criminal conduct; or (C) avoid any transaction reporting requirement imposed by law; and (ii) The total value of the property involved in such financial transaction or transactions exceeds ten thousand dollars; or

   2. the proceeds of specified criminal conduct, or represented to be property used to conduct or facilitate specified criminal conduct: (i) With intent to: (A) promote the carrying on of specified criminal conduct; or (B) conceal or disguise the nature, the location, the source, the ownership or the control of property believed to be the proceeds of specified criminal conduct; or (C) avoid any transaction reporting requirement imposed by law; and (ii) The total value of the property involved in such financial transaction or transactions exceeds fifty thousand dollars.

Contact the Law Offices of Stephen Bilkis & Associates

If you or someone you love has been charged with money laundering in the third degree, or is under investigation for money laundering, it is critical to meet with someone who has experience. In addition to possibly spending up to 7 years in prison, the judge could impose a significant fine. The staff at the Law Offices of Stephen Bilkis & Associates has years of experience successfully defending clients in New York criminal courts who have been charged with money laundering, conspiracy, criminal facilitation, enterprise corruption, and other serious crimes. Contact us at 800.696.9529 to schedule a free, no obligation consultation regarding your case. We serve those accused of larceny in the following locations: the Bronx, Brooklyn, Long Island, Manhattan, Nassau County, Queens, Staten Island, Suffolk County and Westchester County.

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