California Penal Code Section 186.10 PC: Defending Money Laundering Charges in Los Angeles

Money laundering is a serious financial crime in California. This statute criminalizes conducting or attempting to conduct financial transactions involving monetary instruments exceeding certain thresholds, with the intent to promote illegal activity or with knowledge that the funds originated from unlawful sources. Commonly linked to offenses such as drug trafficking, fraud, and organized crime, money laundering involves making illicit funds appear legitimate by funneling them through banks or other financial institutions.

The crime of money laundering is considered a “wobbler” in California, meaning it can be charged as a misdemeanor or a felony depending on the amount involved, the nature of the transactions, and the defendant’s criminal history. A conviction carries severe penalties, including jail or prison time, substantial fines, and a lasting impact on your personal and professional life.

If you or a loved one is facing money laundering charges in Los Angeles, it is essential to have an experienced money laundering defense lawyer by your side. At The Law Offices of Arash Hashemi, we have over 20 years of experience defending clients against complex financial crime allegations. Call (310) 448-1529 today to schedule a consultation and start building your defense.

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Money Laundering Under California Law

California Penal Code § 186.10 makes it a crime to conduct—or attempt to conduct—financial transactions through a financial institution with either:

• The intent to promote criminal activity, or

• Knowledge that the funds involved are the proceeds of criminal activity

This statute applies to transactions involving monetary instruments, such as cash, checks, wire transfers, or other financial assets. It’s often charged alongside crimes like fraud, drug trafficking, or embezzlement—especially when someone is accused of trying to make illegal money appear legitimate.

Money laundering under PC 186.10 is a “wobbler”, meaning it can be charged as a misdemeanor or felony depending on the case details and the defendant’s record.

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Proving a Money Laundering Charge in California

To convict someone of money laundering under California Penal Code 186.10, the prosecution must prove each of the following elements beyond a reasonable doubt:

Completion of a Financial Transaction

The defendant must have conducted or attempted to conduct one or more financial transactions. This can include:

• Depositing or withdrawing funds

• Transferring money between accounts

• Exchanging currency or checks

• Using wire transfers or electronic payment methods

The statute applies to transactions conducted through a financial institution, such as a bank, credit union, or similar organization.

Monetary Thresholds Must Be Met

The amount of money involved must meet one of the following thresholds:

• More than $5,000 within a 7-day period, or

• More than $25,000 within a 30-day period

If the financial activity doesn’t meet either threshold, charges under PC 186.10 cannot be sustained.

The Money Came from Criminal Activity

The funds must be linked to illegal sources, such as:

• Drug sales or distribution

• Fraud, theft, or embezzlement

• Human trafficking or organized crime

Prosecutors must show a direct or circumstantial link between the money and the unlawful conduct.

Knowledge of the Money’s Illegal Origin

The defendant must have known, or reasonably should have known, that the funds came from criminal activity. Prosecutors often rely on circumstantial evidence like:

• Suspicious behavior or attempts to hide the transaction

• Unusual financial patterns

• Recorded conversations or digital communications

Intent to Promote or Conceal Criminal Activity

The prosecution must also prove the defendant acted with intent to:

• Facilitate or promote further illegal activity, or

• Conceal or disguise the true origin of the funds

This might involve breaking large transactions into smaller ones (structuring), using shell accounts, or transferring funds internationally.

Important: The prosecution must prove all of these elements beyond a reasonable doubt. If your attorney can challenge any one of them—such as the monetary threshold, intent, or knowledge—it can weaken the case or result in reduced charges or dismissal.

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Penalties for Money Laundering Under Penal Code 186.10

If you’re convicted of money laundering the consequences can vary significantly based on the specific facts of the case, including the amount of money involved and your prior criminal record.

Although this charge can be filed as either a misdemeanor or a felony, most cases involving large sums or connections to organized crime are prosecuted as felonies.

Misdemeanor Penalties

If the case is filed as a misdemeanor, possible penalties include:

• Up to 1 year in county jail

• A fine of up to $1,000

• Summary (informal) probation

• Court-ordered restitution or financial monitoring

Felony Penalties

When charged as a felony, the penalties become much more severe:

• 16 months, 2 years, or 3 years in county jail

• A fine of up to $250,000, or twice the value of the laundered amount—whichever is greater

• Formal probation, with conditions like financial restrictions and court supervision

Enhanced Penalties for Prior Convictions

If you have a prior money laundering conviction, enhanced fines may apply:

• Up to $500,000, or five times the value of the laundered amount—again, whichever is greater

Sentencing Enhancements for Large Transactions

California law adds additional penalties when the amount laundered exceeds certain thresholds:

• +1 year for laundering over $50,000

• +2 years for laundering over $150,000

• +3 years for laundering over $1,000,000

• +4 years for laundering over $2,500,000

These enhancements can be added to a felony sentence and are typically imposed in major fraud, drug trafficking, or organized crime investigations.

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Legal Defenses Against Money Laundering Charges

Proving Lack of Intent or Knowledge

To be convicted of money laundering, the prosecution must prove you knowingly engaged in financial transactions involving proceeds from illegal activities or acted with the intent to promote criminal activity. If your attorney can demonstrate that:

• You were unaware the funds originated from criminal activity, or
• You did not intend to facilitate or conceal illegal conduct,
  then the charges may be reduced or dismissed. For example, if you deposited money for a family member without knowing its illegal origin, this lack of knowledge could serve as a valid defense.

Challenging Evidence Linking to Criminal Proceeds

Money laundering charges often rely on complex financial records and circumstantial evidence. Your attorney may challenge the prosecution’s evidence by:

• Identifying gaps in the chain of custody for financial documents.
• Arguing that the transaction amounts or timelines do not meet the thresholds outlined in PC 186.10.
• Showing that the prosecution lacks direct evidence linking you to criminal activity.

Legitimate Source of Funds

If the funds involved in the transactions had a lawful origin, your attorney can argue that the financial activities were legitimate. For instance:

• Transactions made with earnings from a legitimate business or investments can refute claims of laundering.
• Evidence such as tax records, bank statements, or receipts can be presented to support this defense.

Violation of Constitutional Rights

Law enforcement must follow strict legal procedures during investigations and arrests. If your constitutional rights were violated, the evidence against you may be deemed inadmissible. Common violations include:

• Unlawful search or seizure: If law enforcement obtained evidence without a valid warrant or probable cause.
• Lack of Miranda warnings: If officers failed to inform you of your rights before questioning you.
• Coerced confession: If you were pressured or threatened into making incriminating statements.

Entrapment

If law enforcement or undercover agents pressured or coerced you into participating in a transaction you would not have otherwise conducted, entrapment may serve as a defense. For example:

• If an agent persuaded you to conduct a financial transaction under false pretenses or with undue influence, this could negate criminal liability.

Amounts Below the Statutory Threshold

Money laundering under PC 186.10 requires transactions exceeding $5,000 within a seven-day period or $25,000 within 30 days. If the amounts involved in your case fall below these thresholds, the charges may be dismissed.

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Speak with a Los Angeles Money Laundering Attorney for Immediate Assistance

If you or a loved one is facing charges of money laundering under California Penal Code Section 186.10, it is crucial to seek immediate legal representation.  At The Law Offices of Arash Hashemi, we bring over 20 years of experience in defending clients against financial crime charges in Los Angeles and surrounding areas. Attorney Arash Hashemi will carefully analyze the specifics of your case, identify weaknesses in the prosecution’s evidence, and develop a customized defense strategy aimed at achieving the best possible outcome.

Don’t let these charges jeopardize your future. Take proactive steps to protect your rights and freedom by contacting an experienced criminal defense attorney today for a confidential consultation.

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Disclaimer: The content provided here is for informational purposes only and does not constitute legal advice. It is not intended to predict outcomes, as individual circumstances vary and laws may change over time. Those seeking legal advice should consult with a qualified attorney to understand how current laws apply to their specific situation. For detailed legal guidance on the topics discussed, please contact our law firm directly.