Money Laundering
A Nassau County, New York, judge was arrested and charged with being part of a massive money laundering conspiracy that includes three reputed members of the Genovese crime family.[1] The indictment also alleges that Judge David Gross, in addition to laundering money, was involved in disposing of stolen merchandise.[2]
The Judge was caught in an undercover sting operation in which the FBI pretended to have diamonds which were “untraceable” and offered them for sale to Judge Gross.[3] Judge Gross agreed to help move the diamonds, and then discussed ways to launder the cash through his political consultant.[4]
Both money laundering and receiving stolen goods are serious federal crimes.
Money Laundering
Money laundering is criminalized by 18 U.S.C. §§ 1956 and 1957. There are three different ways to violate section 1956.
The first is for a person “knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity” to conduct or attempt to conduct such a financial transaction which in fact involves the proceeds of an unlawful activity—
- with the intent
- to promote the carrying on of specified unlawful activity;[5] or
- to engage in conduct constituting a violation 26 U.S.C. §§ 7201 or 7206 (relating to the Internal Revenue Code);[6] or
- knowing that the transaction is designed in whole or in part—
- transport, transmit, or transfer, (or attempt to transport, transmit, or transfer) a monetary instrument or funds from a place in the United States to or through a place outside the United States or to a place in the United States from or through a place outside the United States—
- with the intent to promote the carrying on of specified unlawful activity;[9] or
- knowing that the monetary instrument or funds involved in the transportation represent the proceeds of some form of unlawful activity and knowing that such transportation, transmission, or transfer is designed in whole or in part—
- promote the carrying on of specified unlawful activity;[12]
- conceal or disguise the nature, location, source, ownership, or control of property believed to be the proceeds of specified unlawful activity;[13] or
- avoid a transaction reporting requirement under State or Federal law,[14]
- conduct or attempt to conduct a financial transaction involving property represented to be the proceeds of specified unlawful activity, or property used to conduct or facilitate specified unlawful activity.[15]
The other statute that involves money laundering, 18 U.S.C. § 1957, is very similar to the provisions of section 1956, except that the property in question must have a value greater than $10,000 and it must occur with United States jurisdiction. The punishment for a violation of section 1957 is a fine, imprisonment for not more than ten years, or both.
Receiving Stolen Goods
Receiving stolen goods is criminalized by 18 U.S.C. § 2315, which we have discussed here.
[1] Doug Miller, Judge Indicted on Federal Money Laundering Charges, Long Island Herald, Sept. 1, 2005, available here. See also, US Attorney’s Office, Press Release: Nassau County District Court Judge, Three Organized Crime Associates, and Eleven Co-defendants Arrested, Aug. 30, 2005, available here [hereinafter Press Release].
[2] Press Release.
[3] Id.
[4] Id.
[5] 18 U.S.C. § 1956(a)(1)(A)(i).
[6] Id. § 1956(a)(1)(A)(ii)
[7] Id. § 1956(a)(1)(B)(i)
[8] Id. § 1956(a)(1)(B)(ii).
[9] Id. § 1956(a)(2)(A).
[10] Id. § 1956(a)(2)(B)(i).
[11] Id. § 1956(a)(2)(B)(ii).
[12] Id. § 1956(a)(3)(A).
[13] Id. § 1956(a)(3)(B).
[14] Id. § 1956(a)(3)(C).
[15] Id. § 1956(a)(3).
posted by McNabb Associates, P.C. @ 5:16 PM
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