A Guide: How to Expunge Money Laundering Charge in CA

Besides severe fines, potential imprisonment, and other criminal penalties, people facing money laundering charges may find themselves in a tough situation where their personal, professional, and social lives are compromised.

The consequences of being accused or convicted of money laundering can range from a tarnished reputation and the seizure of assets to the inability to find a job or secure housing. However, the California Penal Code lists one possible solution: the expungement of criminal records.

This guide provides more information on how California law allows individuals to expunge money laundering charges, explaining the legal process step-by-step and listing the benefits of clearing a criminal history.

What Is Money Laundering?

California Penal Code Section 186.10 PC defines "money laundering" as a white-collar crime in which a person makes or attempts to conduct a transaction through a financial institution, such as a bank, with the intent to use the funds for criminal activity.

Money laundering occurs when transactions are valued over $5,000 in a seven-day period or more than $25,000 over 30 days and if the defendant knows that the funds involved represent, originate from, or are directly linked to the proceedings of criminal activity.

Is Money Laundering a Felony or a Misdemeanor?

Under Penal Code 186.10 PC, money laundering is classified as a wobbler, meaning it can be either a felony or a misdemeanor, depending on the circumstances of the case and the type of criminal charges filed by the prosecutor.

The penalties for money laundering charges can vary based on this classification. For example:

• If the charges lead to a misdemeanor conviction, offenders can be punished with court fines and up to one year in county jail.
• If the charges lead to a felony conviction, legal consequences can include up to three years in county jail (under Penal Code 1170(h)) and a fine of $250,000 or twice the amount laundered, whichever is greater.

Offenders with prior criminal convictions for money laundering can be fined $500,000 or five times the amount laundered, whichever is greater.

If the funds involved exceed $50,000, an extra year can be added to the jail sentence, with up to four additional years behind bars if the amount exceeds $2,500,000.

Can Money Laundering Be Treated as a Federal Crime?

Yes, money laundering can be considered a federal criminal offense and be subject to even harsher penalties.

When handled by a federal court, a criminal conviction for money laundering can lead to a harsh imprisonment sentence. For instance, defendants can be punished with up to 20 years in federal prison if found guilty. Goss Law can also explain how to expunge identity theft charge in CA.

Common Legal Defenses for Money Laundering Charges

Money laundering charges are complex and require robust legal defenses. Common strategies include:

• Lack of knowledge: Demonstrating that the defendant was unaware of the illegal origin of the funds is a common legal defense. This may involve proving that the individual was merely a "straw man" or an unwitting participant in a larger scheme.
• Lack of intent: Another defense strategy is to argue that the defendant didn't intentionally conceal or disguise the source of the funds. In this case, it must be proven that the defendant's actions were lawful or that any suspicious activity was unintentional.
• Due diligence: Another option is to prove that the individual took reasonable steps to verify the source of the funds and ensure compliance with anti-money laundering regulations. Defendants should prove that they implemented robust customer identification procedures and conducted thorough background checks.
• Entrapment: Defendants can also argue that law enforcement officers induced them to commit the crime and demonstrate that they weren't predisposed to engage in money laundering or that the officers' actions were overly persuasive or coercive.
• Necessity: Arguing that the defendant committed the crime out of necessity, such as to avoid imminent harm or to protect themselves or others, can be used as a legal defense, too. However, this strategy is rarely successful and requires compelling evidence of extreme circumstances.

Can Money Laundering Charges Be Expunged from a Criminal Record in California?

In California, individuals convicted of money laundering can expunge these charges from their criminal records to get their lives back to normal. However, this legal option is only available under certain circumstances.

In California, "expungement" usually means a dismissal under Penal Code 1203.4. The court sets aside the conviction and dismisses the case. This does not seal the records. The conviction still appears, marked as dismissed.

The person must still disclose the conviction when directly asked on an application for public office, for a state or local license, or for a contract with the California State Lottery. Licensing agencies can see it. Leaving it off a license application can lead to a denial for dishonesty.

Keeping a conviction out of most background checks is a separate remedy called record relief, under Penal Code 1203.425.

However, expungement may become available some time after the conviction occurred and is subject to specific requirements. Goss Law can share how to expunge brandishing charge in CA as well.

What Penal Code 1203.4 PC Says

Penal Code 1203.4 PC outlines the eligibility criteria and procedures for record expungement in California. This statute allows individuals with certain misdemeanor and felony convictions to petition the court to dismiss the conviction.

Who Is Eligible for Expungement in California?

Eligibility for expungement in California varies depending on the specific offense and the individual's criminal history.

The main paths are:

• Penal Code 1203.4: For people who were granted probation. If they completed probation (or it was terminated early) and are not serving a sentence, on probation, or charged with a new offense, the court must grant relief. People who violated probation can still ask for discretionary relief "in the interests of justice."
• Penal Code 1203.41: For felony sentences served in county jail under Penal Code 1170(h), usually one or two years after the sentence is completed.
• Penal Code 1203.42: For some older state prison sentences for offenses that would now be served in county jail.

A petition cannot be denied because restitution or a restitution fine is still unpaid.

Steps to Expunge Money Laundering Charges in California

These are the key steps involved in the California expungement process:

1. Determine eligibility: Consult with a criminal defense attorney to determine eligibility for expungement.
2. File a petition: File a petition with the court requesting dismissal of the conviction, including specific information about the case to demonstrate that the eligibility criteria are met.
3. Serve the petition: Deliver a copy of the petition to the district attorney and any other relevant parties.
4. Court hearing: Attend a court hearing where the judge will review the petition and determine whether to grant the request.
5. Order of dismissal: If the court grants the request, it will set aside the conviction and dismiss the case. The record is updated to show the dismissal.

Who Is Not Eligible for Expungement in California?

In California, not every person can have a conviction dismissed. Relief is not available to individuals who:

• Are currently serving a sentence, on probation, or charged with a new offense.
• Were convicted of certain sex offenses listed in Penal Code 1203.4(b), such as PC 286(c), 287(c), 288, 288.5, 289(j), the child pornography offenses in PC 311 and following sections, or felony PC 261.5(d).
• Were convicted of a Vehicle Code 42002.1 violation.
• Were sentenced to state prison, unless Penal Code 1203.42 applies.

Having more than one felony, or a serious or violent felony, is not by itself a bar to a 1203.4 dismissal.

Can You Expunge a Federal Crime in California?

Although expungement is available in this state, California law generally doesn't apply to federal crimes.

Federal law generally has no expungement for adult convictions. For a federal money laundering conviction, the main route to relief is a presidential pardon.

The Limitations of Expungement in California

It's important to understand the limitations of expungement in California. A dismissed conviction is still visible to law enforcement and licensing agencies, and it can still be used as a prior conviction in a later case.

Plus, this process may come with some expenses, including attorney and court filing fees. For more information, expungement lawyers in Sacramento may be able to help.

The Positive Impact of Expungement on People's Lives

Expungement can have a significant positive impact on people's lives. With a dismissal, an individual may be able to:

• Improve employment opportunities: Many employers conduct background checks as part of the hiring process. Most private employers cannot use a dismissed conviction against an applicant (Labor Code 432.7).
• Improve housing opportunities: Landlords may also conduct background checks on potential tenants, so a dismissed conviction may increase the chances of securing stable housing.
• Restore professional licenses: Some professional licenses may be revoked or suspended due to a criminal conviction. Expungement may allow an individual to reapply for their license.
• Reduce the stigma associated with a criminal conviction: A dismissal can help an individual move forward and rebuild their life after a conviction.

What to Do When It Isn't Possible to Expunge Criminal Records

If an individual isn't eligible for expungement, there may be other options available. Offenders may be able to:

• Seek early probation termination: This can reduce the length of probation and may make an individual eligible for expungement sooner.
• Complete community service: This can demonstrate to the court that the individual is rehabilitated and may increase their chances of obtaining expungement.

Legal Representation Throughout the Expungement Process

The expungement process can be complex and challenging. Thus, individuals who are considering this legal action should consult with a criminal defense attorney throughout to make the best decisions for their cases.

Below is what a criminal defense attorney can do for people seeking expungement:

• Assess eligibility: Determine whether an individual meets the eligibility criteria for expungement.
• Prepare and file the petition: Ensure that the petition is properly prepared and filed with the court.
• Represent the individual in court: Advocate for their rights and interests at the court hearing.
• Advise on legal options: Explore all available options, including early probation termination and community service.

Find a Criminal Defense Attorney at Goss Law

Individuals seeking to expunge a money laundering conviction in California can contact attorney Blair Goss at Goss Law.

Blair can provide legal guidance and representation through the expungement process. Contact Goss Law today for a free consultation!