11370.9 HS – Money Laundering Involving Drug Sales
California Health and Safety Code 11370.9 HS targets money laundering activities related to drug crimes. This statute criminalizes the act of concealing, transferring, or attempting to legitimize funds derived from the illegal sale, manufacturing, or distribution of controlled substances. Prosecutors aggressively pursue these cases, as money laundering often plays a crucial role in supporting organized drug operations.
Money laundering involving drug crimes is treated as a serious offense due to its connection with large-scale criminal enterprises. A conviction can lead to harsh penalties, including significant prison sentences, hefty fines, and forfeiture of assets. Additionally, these charges are often investigated alongside federal authorities, increasing the stakes.
If you or a loved one is facing allegations under HS 11370.9, acting quickly is crucial to protect your rights and build a strong defense. Contact our Los Angeles money laundering lawyer at (310) 448-1529 for a confidential consultation and to discuss your legal options.
Understanding Drug Money Laundering Laws in California (HS 11370.9)
Health and Safety Code 11370.9 specifically addresses money laundering linked to drug-related offenses. It criminalizes the handling of proceeds from activities such as drug trafficking, manufacturing, or distribution. Unlike general money laundering statutes under Penal Code § 186.10, this law exclusively targets financial transactions involving illicit drug money.
Any efforts to conceal, disguise, or legitimize the origins of funds derived from drug-related crimes are strictly prohibited under HS § 11370.9.
Key Activities Prohibited Under HS § 11370.9
- Receiving or Acquiring Drug Proceeds: Accepting money or assets you know originate from drug-related crimes.
- Concealing Financial Transactions: Engaging in activities designed to hide the true nature, ownership, or source of funds linked to controlled substance offenses.
- Avoiding Reporting Requirements: Structuring deposits or conducting financial transactions to evade mandatory state or federal reporting laws.
This statute is part of California’s broader effort to disrupt and dismantle drug-related operations by targeting the financial networks that sustain them. Individuals found guilty of laundering drug proceeds face severe penalties and long-term consequences.
Elements Prosecutors Must Prove
In order to be convicted of HS 11370.9 money laundering in connection with drug crimes, the prosecutor must be able to prove all the elements of the crime:
- Receipt or Transaction: You received or conducted a financial transaction involving proceeds derived from drug-related activities.
- Knowledge of Illicit Source: You were aware that the money originated from a controlled substance offense.
- Intent to Conceal: You acted with the specific intent to hide or disguise the ownership, control, or source of the proceeds, or to evade state or federal reporting requirements.
- Threshold Amount: The total amount laundered exceeded $25,000 within a 30-day period.
Each of these elements must be proven beyond a reasonable doubt. A failure to establish even one element can result in a dismissal or reduction of the charges. A skilled defense attorney can challenge the prosecution’s evidence and work to disprove their case.
Penalties for Drug Money Laundering Under California HS 11370.9
A violation of California Health and Safety Code § 11370.9 is classified as a wobbler offense, meaning it can be prosecuted as either a misdemeanor or a felony. The decision to charge the offense as a misdemeanor or felony depends on various factors, including the amount of money laundered, the quantity of drugs involved, the frequency of transactions within 30 days, and the defendant’s prior criminal record.
Misdemeanor Penalties:
- Up to 1 year in county jail.
- Fines up to $1,000.
Felony Penalties:
- State prison sentence of 2, 3, or 4 years.
- Fines ranging from $250,000 or twice the amount laundered, whichever is greater.
- At least 50% of the prison sentence must be served in custody.
Enhanced Penalties for Larger Amounts:
- Additional prison terms may apply if the laundered amounts exceed $2.5 million or involve substantial drug operations.
Additional Consequences
- Crimes of Moral Turpitude: Since this offense is tied to drug crimes and financial misconduct, it is considered a crime of moral turpitude. A conviction can impact immigration status, including deportation or inadmissibility for non-citizens, and may result in the loss of professional licenses for individuals in regulated professions.
Common Defenses to Drug-Money Laundering
Lack of Knowledge
To secure a conviction, the prosecution must prove that you knowingly handled or engaged in financial transactions involving funds derived from drug-related activities. If you were unaware that the money was connected to illegal drug operations, this lack of knowledge could be a powerful defense. For instance, if you acted on behalf of someone else without any indication of illicit activity, it may cast doubt on the prosecution’s claims.
No Intent to Conceal
One key element of money laundering is the intent to disguise the origins of illegal funds. If your actions were routine financial transactions without the purpose of hiding or disguising the source of the money, this lack of intent can be used to challenge the charges. For example, depositing money into a legitimate business account without any effort to conceal its origin could undermine the prosecution’s case.
Insufficient Evidence
The prosecution must prove each element of the crime beyond a reasonable doubt, including the threshold amount of $25,000 within 30 days. If the evidence fails to meet this threshold or lacks clarity regarding your involvement, the charges may be dismissed or reduced. Challenging the reliability or admissibility of financial records and other evidence can weaken the prosecution’s case.
Entrapment
If law enforcement pressured or coerced you into participating in money laundering activities, you may be able to argue entrapment. For instance, if undercover officers or informants induced you to engage in laundering funds that you would not have otherwise handled, this could serve as a valid defense.
Violation of Constitutional Rights
Evidence obtained through illegal searches, seizures, or other violations of your constitutional rights may be suppressed. If law enforcement conducted a search without a valid warrant or overstepped the warrant’s scope, your attorney can file a motion to exclude the improperly obtained evidence, potentially leading to a dismissal of the case.
Speak with a Los Angeles Criminal Defense Attorney
Facing charges under Health and Safety Code § 11370.9 for laundering money connected to drug crimes is a serious legal matter. These cases often involve intricate financial investigations and harsh penalties, including prison time, substantial fines, and asset forfeiture. At The Law Offices of Arash Hashemi, we are dedicated to protecting your rights and defending against these high-stakes accusations.
Attorney Arash Hashemi provides focused legal representation for individuals accused of money laundering and drug-related offenses. We will thoroughly evaluate your case, challenge the prosecution’s evidence, and develop a tailored defense strategy aimed at securing the best possible outcome.
Don’t wait to take action. Protect your rights by consulting with a trusted Los Angeles criminal defense attorney who will fight for your future.
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