Money Laundering Attorney in Merced

What California Penal Code 186.10 Requires the Prosecution to Prove

Penal Code 186.10 defines money laundering as conducting or attempting to conduct a transaction through one or more financial institutions involving monetary instruments totaling more than $5,000 within a seven-day period, or more than $25,000 within a 30-day period. The prosecution must also prove either specific intent to promote or facilitate criminal activity, or knowledge that the funds represent proceeds of criminal activity. Both elements must be established; the transaction amount alone isn’t enough.

Each qualifying transaction or series of transactions within those time windows can be charged as a separate offense. When the defendant is an attorney who accepted a legal fee, the prosecution faces an additional burden: it must prove the attorney accepted those funds with intent to disguise their source or the nature of the underlying criminal activity.

Penalties Under Penal Code 186.10

Money laundering is a wobbler offense, meaning it can be charged as a misdemeanor or a felony based on the facts and the defendant’s prior record. A misdemeanor carries up to one year in county jail. A felony sentence is governed by Penal Code 1170(h). In either case, fines can reach $250,000 or twice the value of the transacted property, whichever is greater. A second or subsequent conviction raises that ceiling to $500,000 or five times the property value.

Consecutive prison terms apply when transaction values reach certain thresholds:

• Exceeds $50,000: One additional consecutive year
• Exceeds $150,000: Two additional consecutive years
• Exceeds $1,000,000: Three additional consecutive years
• Exceeds $2,500,000: Four additional consecutive years

Federal Money Laundering Exposure Under 18 U.S.C. Section 1956

When transactions cross state lines or involve federally insured financial institutions, the federal government frequently steps in. A conviction under 18 U.S.C. Section 1956 carries up to 20 years in federal prison, separate from and in addition to any state exposure. Federal prosecution also brings heavier investigative resources, including multi-agency financial crime task forces and grand jury subpoenas. Cases involving drug-related funds carry an additional layer: California allows prosecutors to pursue laundering charges tied specifically to drug proceeds under Health and Safety Code 11370.9, which can add exposure on top of a standard Penal Code 186.10 charge.

Defense Strategies Against Money Laundering Charges

Because Penal Code 186.10 requires both a qualifying transaction and proof of knowledge or intent, the defense has multiple points of attack. A charge may fail if the prosecution can’t establish that the accused knew the funds came from criminal activity or acted to promote it. This is sometimes called a mistake of fact defense, and it focuses on what the defendant actually knew and when.

Transaction Threshold Challenge
If the amounts involved don’t meet the $5,000 seven-day or $25,000 thirty-day thresholds, the charge under Penal Code 186.10 may not stand. Prosecutors sometimes overcount or misgroup transactions, and a careful review of the financial records can expose those errors.

Legitimate Source of Funds
When tax filings, bank statements, or business receipts show the funds had a lawful origin, the prosecution’s theory may weaken. Structuring transactions through financial institutions doesn’t become laundering simply because the government labels it that way.