There is No Substitute For Experience.

"I learned a long time ago if you do things like everyone else does, you will end up average. We do not strive to be average, we strive to be exceptional. I encourage you to call me directly to discuss your case.”

-Arizona Criminal Attorney Dwane Cates

Phoenix Money Laundering Attorney

Money laundering charges are among the most complex and consequential white collar crimes a person can face in Arizona. These cases often involve years-long investigations by state prosecutors, the FBI, the IRS, or the Department of Justice, and they can result in charges even against people who had no direct involvement in the underlying criminal activity that generated the funds. Because money laundering can be prosecuted at both the state and federal level — sometimes simultaneously — a conviction carries the risk of lengthy prison time, massive fines, and the forfeiture of homes, vehicles, bank accounts, and businesses.

At Cates & Reed, PLLC, our Phoenix money laundering lawyers bring nearly 30 years of criminal defense experience to complex financial crime allegations. Founding attorney Dwane Cates is an Arizona board-certified specialist in Criminal Law, and our team works directly with clients to independently investigate the financial evidence, challenge how it was gathered, and build a defense strategy tailored to the specific transactions at issue. If you or your business is under investigation or has been charged with money laundering in Phoenix or anywhere in Arizona, the earlier we get involved, the more effectively we can protect your rights, your assets, and your future.

Contact our firm today at (480) 864-3807 to get started on building your defense.

What Is Money Laundering?

Money laundering is the process of disguising the source, ownership, or destination of money obtained through illegal activity so that it appears to come from a legitimate source. In practice, this can involve moving funds through shell companies, structuring bank deposits to avoid reporting requirements, purchasing real estate or vehicles with illicit proceeds, using cryptocurrency to obscure a paper trail, or simply transferring money between accounts to make it harder to trace back to its origin.

Importantly, a person does not need to have committed the underlying crime that generated the money to be charged with laundering it. Prosecutors only need to show that a person knowingly conducted a financial transaction involving proceeds they knew — or should have known — were connected to criminal activity. This means business owners, bookkeepers, real estate agents, and even family members who simply handled money on someone else's behalf can find themselves facing charges, particularly when the "knowledge" element is based on circumstantial inference rather than direct evidence.

Arizona Money Laundering Penalties

Arizona prosecutes money laundering under A.R.S. § 13-2317, which divides the offense into three degrees based on the nature of the conduct and the defendant's role:

First-Degree Money Laundering applies to individuals who knowingly initiate, organize, plan, finance, direct, manage, or supervise a money laundering scheme, or who are in the business of doing so. It is a Class 2 felony, and a first-time conviction can carry a sentence ranging from probation up to roughly 12.5 years in prison, with sentencing ranges climbing significantly — up to 35 years — for defendants with prior felony convictions. First-degree charges can also apply when the underlying conduct is connected to terrorism or murder.
Second-Degree Money Laundering is a Class 3 felony, generally covering conduct such as knowingly conducting a transaction involving criminally derived property, or making false statements to conceal the nature of illegally obtained funds. Sentencing can range from probation up to roughly 8.75 years for a first offense, with substantially longer exposure for repeat offenders.
Third-Degree Money Laundering is a Class 6 felony, generally reserved for less severe conduct, with sentencing ranging from a few months up to roughly two years for a first-time offense.

All degrees of money laundering are felonies in Arizona — there is no misdemeanor version of this charge. Convictions frequently come with substantial fines tied to the value of the funds involved, mandatory restitution, and civil or criminal asset forfeiture that can allow the state to freeze bank accounts, vehicles, and property even before a conviction is secured.

Federal Money Laundering Penalties

Because money laundering frequently involves interstate wire transfers, federal financial institutions, or international transactions, many cases are prosecuted federally under 18 U.S.C. § 1956 and its companion statute, 18 U.S.C. § 1957.

18 U.S.C. § 1956 covers a broad range of conduct, including transactions intended to promote unlawful activity, conceal the source of criminal proceeds, or evade financial reporting requirements. A conviction carries up to 20 years in federal prison per count, along with fines of up to $500,000 or twice the value of the property involved in the transaction — whichever is greater.
18 U.S.C. § 1957 prohibits knowingly engaging in a monetary transaction of more than $10,000 involving criminally derived property. It carries a maximum penalty of 10 years in federal prison, with similarly steep fines.
Federal law also allows for criminal and civil forfeiture of any property involved in or traceable to the laundering offense, meaning homes, vehicles, business assets, and bank accounts can be seized.
Conspiracy to commit money laundering under 18 U.S.C. § 1956(h) carries the same penalties as the underlying offense itself.

Federal cases are typically investigated by the FBI, IRS Criminal Investigation Division, or Department of Justice, and often accompany other federal charges such as wire fraud, drug trafficking, or racketeering — meaning a person's total sentencing exposure can be significantly higher than the money laundering charge alone would suggest.

Legal Defenses Against Money Laundering

Because money laundering cases are built almost entirely on financial records and inferred intent, there are typically multiple angles available to challenge the prosecution's theory, including:

Lack of knowledge. The prosecution must prove you knew — or had reason to know — that the funds were connected to criminal activity. Innocent handling of money on behalf of an employer, client, or family member is a frequently successful defense.
Insufficient evidence of intent. Prosecutors must show a specific intent to conceal, promote, or evade reporting requirements — not just that a transaction occurred.
Challenging the underlying predicate offense. If the state or government cannot prove the funds were actually derived from unlawful activity, the laundering charge itself can unravel.
Unlawful search or seizure of financial records. Bank records, business documents, and electronic communications must be obtained through lawful means, such as a valid subpoena or warrant.
Errors in forensic accounting. Complex financial trails are often reconstructed through expert analysis, and errors, gaps, or flawed assumptions in that analysis can be challenged by independent financial experts.
Fifth Amendment and Miranda protections. Statements made during financial crime investigations, particularly in interviews with federal agents, must be voluntary and properly obtained.

Why Choose Cates & Reed, PLLC

Direct attorney access in both state and federal court
Board-certified experience — Dwane Cates is a State Bar-certified Criminal Law Specialist
28+ years of criminal defense experience across Arizona
Independent investigation of complex financial evidence rather than accepting the government's narrative
24/7 availability, because financial crime investigations can move quickly and without warning

Frequently Asked Questions

Can I be charged with money laundering if I didn't commit the original crime?

Yes. Money laundering charges focus on how funds were handled, not who committed the underlying offense. Prosecutors only need to prove you knowingly conducted a transaction involving property you knew or should have known was criminally derived.

Is money laundering always charged as a felony in Arizona?

Yes. All three degrees of money laundering under A.R.S. § 13-2317 are felonies, ranging from a Class 6 felony at the lowest degree to a Class 2 felony for the most serious conduct.

Will my case be prosecuted in state or federal court?

It depends on the scope of the alleged conduct. Cases involving interstate transactions, federal financial institutions, or connections to other federal crimes are often prosecuted federally, where penalties and mandatory minimums tend to be more severe than under Arizona state law.

Can the government seize my assets before I'm convicted?

Yes. Both Arizona and federal law allow for forfeiture of property connected to alleged money laundering, and in many cases this can happen before any conviction, through civil forfeiture proceedings.

What should I do if federal agents contact me about a financial investigation?

Do not answer questions or provide documents without an attorney present. Statements made early in a financial crimes investigation are frequently used to establish the "knowledge" element prosecutors need, and an attorney can protect your rights from the very first contact.

Speak With a Phoenix Money Laundering Lawyer Today

Money laundering charges can threaten your freedom, your business, and your assets, but an accusation is not a conviction. Cates & Reed, PLLC answers calls 24/7 and works directly with clients throughout Phoenix and across Arizona to build an aggressive defense in state and federal court.

To discuss a money laundering case confidentially, call (480) 864-3807.

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