Difference Between Money Laundering and Embezzlement | Texas

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What is the Difference Between Money Laundering and Embezzlement?

 Posted on June 08,2023 in Criminal Defense

TX defense lawyerMoney laundering and embezzlement are both forms of financial crimes, but their underlying principles and methods differ. While both can result in significant financial losses and criminal penalties, the distinction between the two is essential to understand, especially for someone who is facing charges of money laundering, embezzlement, or both. If this sounds like you, contact a criminal defense attorney to understand the charges against you and begin building your defense strategy.

Here is What to Know About Embezzlement

Embezzlement involves the illegal transfer of funds or property from an individual or organization by someone entrusted with that property or funds. Often, this happens when an employee has access to money and instead diverts the funds for personal use. In an embezzlement scheme, the person is taking funds belonging to someone else and using them for personal purposes. The action involved is essentially stealing, and the intent usually consists of some personal gain. Embezzlement does not generally involve any manipulation of the original transaction.

Here is What to Know About Money Laundering

On the other hand, money laundering is a process that seeks to conceal the truth about where funds or property came from. These kinds of schemes involve the process of making fraudulent money appear legitimate. Usually, this involves taking money gained from illegal activity and making it unclear where that money came from or how it was acquired. In practical terms, an individual involved in money laundering sets up a series of transactions to hide the fact that the money is dirty. They will usually inject these funds into several financial systems that may become difficult to track. In other cases, money laundering may occur on a smaller scale, for example, a drug criminal using a casino to launder their dirty money.

What Do These Crimes Have in Common?

Both of these financial crimes can lead to serious, long-lasting consequences. In most cases, the penalties that result from prosecution depend on the amount of money or property involved and the circumstances surrounding the crimes. Aside from the potential legal repercussions, both criminal offenses can significantly damage business and personal reputations.

Contact an Atascosa County White Collar Defense Attorney

While these crimes are not violent, they are still severe, especially when large amounts of money are involved. Contact the well-established and respected Jourdanton white collar defense lawyers with BRCK Criminal Defense Attorneys for aggressive criminal representation. Call 830-769-1010 for a free consultation.


Source - https://www.fbi.gov/investigate/white-collar-crime

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