18 USC 1956 Money Laundering: What the Federal Government Doesn't Want You to Know
If you're reading this, there's a good chance your life is about to change in ways you never expected. Welcome to Spodek Law Group - we understand the fear you're feeling right now, and we want you to know that you're not alone in this. Federal money laundering charges under 18 USC 1956 are some of the most misunderstood and most devastating charges in the entire federal criminal code. And the government is counting on that confusion to bury you.
Here's what most people don't understand. You don't have to be some cartel kingpin or mob boss to face money laundering charges. The feds are coming after regular people - accountants, real estate agents, small business owners - anyone who's moved money that touched, at any point in its journey, something illegal. And the kicker? You didnt even have to know about it. Not really.
The Knowledge Trap That Destroys Defences
People think they need to KNOW the money was dirty. Like, specifically know. That some drug dealer handed them cash and said Hey, this is drug money, please launder it for me. That's not how it works. The federal standard is way, way lower then that.
Under 18 USC 1956, prosecutors only need to prove you knew the money came from "some form" of illegal activity. Some form. Not a specific crime. Not a specific person. Just that you had a general awareness that something wasn't right. And if they can't prove actual knowledge? They use what's called "willful blindness" - the idea that you deliberately avoided finding out where the money came from. Not asking questions becomes evidence of guilt. Think about that for a second.
The DOJ Justice Manual lays it out pretty clearly. If you deliberately close your eyes to what would otherwise be obvious, thats enough. You consciously avoided learning the truth? Guilty. This is the trap that catches people who thought they where being careful. They weren't asking questions; they thought that was smart. It wasnt. Its the exact thing prosecutors use to nail them.
The Structuring Crime Nobody Understands
This one blows people's minds. Completly.
You can be convicted of structuring - which is related to money laundering - even when every single dollar you deposited was 100% legitimately earned. Every pennyis clean. You paid taxes on it, you have records for it, its YOUR money from YOUR job or YOUR business. Dosent matter.
The crime isnt about wether the money is dirty. The crime is the PATTERN of deposits. Banks are required to file Currency Transaction Reports for anything over 10,000 dollars. If you're making deposits of 9,500 here, 9,200 there, 8,800 somewhere else - trying to stay under that threshold - that's structuring. Its a seperate federal crime under 31 USC 5324. And it carrys up to 5 years in prison.
This is critical to understand: You did nothing wrong with the money itself. You just deposited it wrong.
Small business owners get caught in this all the time. Thier depositing cash from there business, maybe they dont want to make one big deposit because it feels like alot to carry around or whatever, so they break it up. Boom. Structuring. The government doesn't care about your reasons. They care about the pattern.
The Twenty-Year Multiplier Effect
Now here's where 18 USC 1956 gets really terrifying. Each transaction can be charged as a separate count. Each count carries up to 20 years. Twenty years.
So you moved money three times? That's potentially 60 years maximum. Wire it to pay some bills, transfer it to another account, move it again to pay someone - each of those could be a count. Prosecutors use this for leverage. They stack counts like building blocks until the numbers are so impossibly high that taking a plea deal - any plea deal - looks like the smart move.
According to the U.S. Sentencing Commission, there were 1,095 money laundering cases in fiscal year 2024. That's up 45 percent since 2020. The average guideline minimum is 108 months - that's 9 years. The average actual sentence is 62 months - still over 5 years. And 87.7 percent of people convicted receive prison time. Almost everyone goes away.
Todd Spodek and the team at Spodek Law Group have seen what these numbers do to familys. We're talking about years, sometimes decades, separated from loved ones. Careers destroyed. Reputations demolished. This isn't some white collar slap on the wrist. This is your life.
The Silent Investigation You Never See Coming
Here's something that really messes with people's heads. By the time you find out you're under investigation, the investigation has usually been going on for 12 to 24 months already. Sometimes longer. Two years. They been watching you, building a case, collecting evidence, talking to witnesses - and you had no idea.
Your bank has been filing Suspicious Activity Reports on you. SARs. And legally, they're not allowed to tell you. You could have a dozen SARs filed against you right now and you'd never know. The bank sees a pattern they dont like, they file a report with FinCEN, and that information sits in a database waiting for someone to pull it up. When they finally knock on your door, they already know everything.
Think you can explain your way out of it? Good luck. By the time agents make contact, they've spent months reviewing your financial records, interviewing people in your life, and building a narrative. Your explanation - the truth - becomes just another thing they have to overcome in there prosecution. The time to shape the narrative was before they finished building there.
