Money Laundering Defense
A money laundering investigation can freeze your accounts and put your business and family under a microscope. You deserve calm, clear guidance on what the State has to prove before you answer any questions about the money.
We can help. Nova Law Group was built by a former Maricopa County Attorney’s Office felony prosecutor. We prepare every case as if it is going to trial, and we take a meticulous, aggressive approach, fighting from every angle, because the report is only one side of the story.
Talk to us before you talk to anyone else. Call (480) 405-6767. Consultations are free and confidential, and the earlier we are involved, the more we can do.
At a glance
- The law: A.R.S. § 13-2317 defines money laundering in the first, second and third degree.
- How it is classified: Third degree is a class 6 felony, second degree is a class 3 felony and first degree is a class 2 felony (§ 13-2317(E)).
- Possible sentence: A first-offense class 3 felony carries 2 to 8.75 years in prison, and probation may be possible in some cases.
- Where the case is heard: State felonies go to Maricopa County Superior Court in downtown Phoenix. Federal cases go to the U.S. District Court for the District of Arizona.
- What to do now: Keep your records intact, and talk with a defense lawyer before you explain the money to investigators, your bank or anyone else.
What the law says
Money laundering is about handling money or property connected to crime. Arizona's statute ties that connection to the proceeds of an "offense" or to racketeering. Under § 13-2317(H), "offense" also includes conduct punishable by incarceration under federal law. Second degree covers a wide range of conduct under § 13-2317(B), including:
- Acquiring, transferring, transporting, receiving or concealing racketeering proceeds while "knowing or having reason to know" they are the proceeds of an offense.
- Making property available to another person knowing it is intended to be used to facilitate racketeering.
- Conducting a transaction with property you know or have reason to know is the proceeds of an offense, with intent to conceal or disguise its nature, location, source, ownership or control, or to facilitate racketeering.
- Intentionally or knowingly evading state reporting requirements, including by structuring transactions, or making false entries in required records.
- Falsifying or concealing a person's identity in dealings with a financial institution or money transmitter.
- Running a money transmitting business that requires a state license without being licensed and federally registered.
First degree applies to a person who knowingly initiates, organizes, plans, finances, directs, manages or supervises money laundering, or is in the business of it (§ 13-2317(A)(1)). It also applies to second-degree conduct in the course of, or to facilitate, terrorism or murder (§ 13-2317(A)(2)). Third degree covers giving or accepting something of value to influence or reward a money transmitter's failure to follow the state money transmitter laws (§ 13-2317(C)).
Several parts of the law turn on whether you knew "or had reason to know" where the money came from. The State may try to prove what you should have realized from the circumstances, not only what you actually knew.
How it is classified
| Degree | What it generally covers | Classification |
|---|---|---|
| First degree | Organizing, financing, directing or managing money laundering, or second-degree conduct tied to terrorism or murder | Class 2 felony |
| Second degree | Handling proceeds, concealing transactions, evading reporting, false identity or records, unlicensed money transmitting | Class 3 felony |
| Third degree | Bribes or rewards tied to a money transmitter's failure to comply | Class 6 felony |
Under § 13-2317(D), first- or second-degree conduct in a pattern involving a total of $100,000 or more in any twelve-month period can expose you to forfeiture of substitute assets equal to three times the amount involved. This applies in addition to any other penalty.
Possible penalties
Sentencing depends on the degree and your history. For a first felony offense, A.R.S. § 13-702(D) sets these prison ranges:
| Class | Mitigated to aggravated | Presumptive |
|---|---|---|
| Class 2 felony | 3 to 12.5 years | 5 years |
| Class 3 felony | 2 to 8.75 years | 3.5 years |
| Class 6 felony | 0.33 to 2 years | 1 year |
If you are eligible for probation, the court may suspend the sentence and place you on probation under A.R.S. § 13-901(A). A felony fine can be up to $150,000 under A.R.S. § 13-801(A). For a third-degree charge, A.R.S. § 13-604(A) lets the court, in some cases, enter a class 1 misdemeanor or leave the offense undesignated until probation ends.
Similar conduct can also be charged as a federal crime. 18 U.S.C. § 1956 covers financial transactions involving property a person knows "represents the proceeds of some form of unlawful activity," with up to twenty years in prison under subsection (a)(1). 18 U.S.C. § 1957 covers knowingly engaging in a monetary transaction in criminally derived property "of a value greater than $10,000" from specified unlawful activity, with up to ten years. Nova Law Group appears in the U.S. District Court for the District of Arizona.
Consequences beyond the sentence
- Record: A felony conviction can affect jobs, housing and credit. You may later be able to ask the court to set aside the judgment of guilt under A.R.S. § 13-905, or petition to seal the records under A.R.S. § 13-911 after a waiting period. See set-asides and record sealing.
- Forfeiture: Accounts, cash and other property connected to the charge can be at stake.
- Firearms: A felony conviction makes you a prohibited possessor under A.R.S. § 13-3101(A)(7)(b) until your rights are restored, and 18 U.S.C. § 922(g)(1) bars possession after a conviction for a crime punishable by more than one year.
- Immigration: Money laundering can raise removal issues under 8 U.S.C. § 1227(a)(2), which includes aggravated felonies. If you are not a U.S. citizen, talk to an immigration lawyer before you accept any plea.
- Banking and licenses: Banks may close accounts, and financial, real estate and money transmitter licenses may be at risk.
Avoiding jail is not the same as avoiding a conviction. A probation sentence still leaves a felony on your record.
How we defend money laundering charges
These cases often depend on financial records and on what the State says you knew. We trace the money, test the State's theory of where it came from and look for gaps between the records and the charge.
- Source of funds: If the money came from a lawful business, a loan, a gift or another legitimate source, the State may not be able to show it was the proceeds of an offense.
- Knowledge: People often handle money for relatives, employers or clients without knowing its source. The question is what the evidence shows you knew or had reason to know at the time.
- Intent to conceal: Some forms of the offense require intent to conceal or disguise the property, or to facilitate racketeering. Ordinary deposits and payments may not meet that standard.
- Reporting and structuring: Several smaller deposits are not, by themselves, the offense. The State must connect the pattern to intentional or knowing evasion of a reporting requirement.
- Tracing: When lawful and disputed funds are mixed in one account, the amount tied to an offense may be smaller than charged, which can affect forfeiture.
- Procedure: We review warrants, bank subpoenas, device searches and any statements you gave.
Most state felonies in Maricopa County are prosecuted by the Maricopa County Attorney's Office. Certain cases are brought by the Arizona Attorney General's Office, often where conduct crossed county lines, a state agency investigated or the county attorney referred the case. We handle these matters whichever office brought the charge.
Why Nova Law Group
Nova Law Group was built by Ryan Tait, a former Maricopa County Attorney’s Office felony prosecutor. The practice is criminal defense first. We keep caseloads deliberately low, which means the lawyers on your case have time to actually watch the video and read the reports line by line. We take cases to trial when trial is the right pressure. Overcharging happens, and a case that is genuinely prepared for trial changes the conversation with the prosecutor. Most criminal cases are quoted as a flat fee. Consultations are free and confidential.
Common questions
Not necessarily. Section 13-2317 makes money laundering its own offense. The State still has to prove the property was connected to an offense or to racketeering, and what you knew or had reason to know about it.
It is possible, depending on what you knew or had reason to know and what the transactions were meant to do. Helping with a transfer is not a crime by itself. Talk to a lawyer before you explain your role to anyone.
Either is possible, and both governments sometimes look at the same conduct. State felonies in Maricopa County are heard in Maricopa County Superior Court at the downtown Phoenix criminal court complex, in the Central Court Building, 201 W. Jefferson St., or the South Court Tower, 175 W. Madison St. Confirm the building on your current notice.
Forfeiture can be part of these cases. Under § 13-2317(D), a pattern totaling $100,000 or more in twelve months can expose you to forfeiture of substitute assets worth three times the amount involved. Raise any seizure of property or accounts with your lawyer right away.
Sources
Arizona statutes link to the official text on azleg.gov, the Arizona State Legislature’s website. Federal law and general legal references link to Cornell Law School’s Legal Information Institute (LII). Laws change, so the version in effect on the date of your case controls.
Arizona law (azleg.gov)
- A.R.S. § 13-2317: Money laundering; classification; definitions
- A.R.S. § 13-702: First time felony offenders; sentencing; definition
- A.R.S. § 13-901: Probation
- A.R.S. § 13-801: Fines for felonies
- A.R.S. § 13-604: Class 6 felony; designation
- A.R.S. § 13-905: Setting aside judgment of convicted person on discharge; application; release from disabilities; certificate of second chance
- A.R.S. § 13-911: Sealing of arrest, conviction and sentencing records; requirements; fee; appeal; definition
- A.R.S. § 13-3101: Definitions
Cornell Legal Information Institute
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If you have been arrested, charged, or contacted by a detective, the decisions you make in the first few days matter. Nova Law Group defends misdemeanor and felony cases in the Superior Court and in municipal and justice courts across Maricopa County.
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