blog home Financial Crimes Defending Against Money Laundering Charges: California Penal Code §186.10

Defending Against Money Laundering Charges: California Penal Code §186.10

By Los Angeles Criminal Defense Attorney on June 15, 2025

Allegations of money laundering in California are among the most serious financial crime charges an individual or business can face. These cases are aggressively prosecuted by both state and federal authorities, and they also come with significant legal, financial, and reputational consequences.

If you are under investigation or have been charged under California Penal Code §186.10, your choice of legal counsel will play a critical role in determining the outcome.

At Werksman Jackson & Quinn LLP, we provide robust, strategic defense for individuals and entities facing high-level financial crime allegations. Our attorneys have successfully defended clients in the most complex financial crime cases in California courtrooms—and we’re prepared to do the same for you.

What Is Money Laundering Under CA Penal Code 186.10?

Under CA Penal Code §186.10, money laundering is defined as the act of conducting one or more transactions through a financial institution totaling more than $5,000 in a seven-day period or $25,000 in a 30-day period with the intent to promote criminal activity or conceal its origins.

This statute is part of California’s Control of Profits of Organized Crime Act, which means prosecutors often use it to pursue alleged criminal enterprises. However, it is also frequently applied in cases involving business owners, investors, or professionals whose financial activity raises red flags, whether or not any underlying crime can be proven.

Key Elements the Prosecution Must Prove

To convict someone of money laundering under Penal Code 186.10, the prosecution must prove:

1. Financial Transaction: The defendant conducted or attempted to conduct a transaction through a financial institution.
2. Amount Threshold: The amount was over $5,000 in seven days or over $25,000 in 30 days.
3. Criminal Intent: The transaction was intended to promote, facilitate, or disguise criminal conduct.

The statute does not require that the underlying crime be proven beyond a reasonable doubt—only that there is reasonable belief the funds came from or were intended to support criminal activity.

This broad interpretation is often used to build cases on circumstantial or indirect evidence, making it essential to involve a financial crime lawyer in Los Angeles as early as possible.

Penalties for Violating CA Penal Code 186.10

Money laundering under §186.10 can be charged as a wobbler, meaning it can be prosecuted as either a misdemeanor or a felony, depending on the circumstances.

• Misdemeanor: Up to 1 year in county jail and/or a fine of up to $1,000.
• Felony: 16 months, 2 years, or 3 years in prison, and a fine of up to $250,000 or twice the amount laundered—whichever is greater.

In addition:

• If the value of the money laundered exceeds $50,000, sentencing enhancements apply.
• Repeat offenses or transactions linked to organized crime or drug trafficking may trigger even steeper penalties.

For professionals or licensed individuals, a conviction can also result in license suspension or revocation, civil asset forfeiture, and significant career damage.

Common Scenarios That Trigger Money Laundering Charges

Even individuals with no history of criminal activity can find themselves accused of money laundering, often due to:

• Cash-heavy businesses (restaurants, cannabis operations, car dealerships)
• Cryptocurrency transactions lacking documentation
• Structuring deposits to avoid federal reporting thresholds (known as “smurfing”)
• Commingling legal and illegal funds
• Receiving international wire transfers from flagged accounts

In these situations, it’s essential to work with a defense team that understands both the legal intricacies of CA Penal Code 186.10 and the financial ecosystems that prosecutors often misinterpret.

Building a Solid Legal Defense

At Werksman Jackson & Quinn LLP, we build our defense strategies based on a deep analysis of the statute, the evidence, and the financial context. Here are some of the most effective defenses:

Lack of Intent

Intent is a key component of a §186.10 violation. The defense can argue that the defendant had no knowledge that the funds were linked to criminal activity or that the transactions were simply part of routine business practices.

Legitimate Source of Funds

We often present extensive financial records, bank statements, and tax documentation to demonstrate the legitimate origin of the funds and the transparency of the transactions.

Insufficient Evidence

California prosecutors often rely on financial red flags rather than hard evidence. Our team scrutinizes these assumptions, challenging the validity of search warrants, the accuracy of forensic accounting, and the admissibility of digital evidence.

Entrapment or Government Overreach

In certain high-profile cases, state or federal investigators may overstep legal boundaries to provoke illegal activity or misrepresent the scope of financial behavior. Our team can challenge how evidence was obtained, including unconstitutional surveillance or asset seizures.

Violation of Constitutional Rights

If law enforcement violated your Fourth Amendment rights (unreasonable search and seizure) or your Fifth Amendment rights (self-incrimination), any evidence obtained may be inadmissible in court.

Early Legal Representation Matters a Lot

In many financial crime cases, law enforcement spends months—sometimes, even years—building a case before making an arrest.

If you’ve received a subpoena, notice of investigation, or suspect that you are being monitored, don’t wait for charges to be filed. The earlier you involve a money laundering defense attorney in Los Angeles, the more time we have to:

• Negotiate with prosecutors before formal charges
• Challenge overbroad subpoenas or asset freezes
• Protect your professional reputation and financial accounts
• Prevent misunderstandings from turning into indictments

Werksman Jackson & Quinn LLP—Proven Legal Defense

Defending against money laundering charges requires more than just legal knowledge—it demands an elite team of litigators who are comfortable dissecting complex financial records, challenging aggressive prosecutors, and commanding authority in high-stakes trials.

At Werksman Jackson & Quinn LLP, we are known throughout California and the U.S. for our results in white-collar criminal cases. Our attorneys are former federal and state prosecutors, veteran litigators, and recognized authorities in criminal law.

When you work with us, you’re not just hiring one attorney. You’re gaining the full strength and strategic insight of one of the most respected criminal defense firms in California.

Schedule a Confidential Consultation With Our Attorneys

If you’re facing charges under California Penal Code 186.10 or suspect you may be under investigation, time is of the essence. Our lawyers at Werksman Jackson & Quinn LLP are ready to step in immediately, analyze your case, and protect your future.

Call us today at (213) 688-0460 to schedule a consultation. The sooner we begin, the more options we’ll have to safeguard your freedom, finances, and reputation.