[leetcrew]

regarding 1), the point of money laundering is that you can report that income to the IRS without clearly implicating yourself in criminal activity. laundering your money and then not reporting it defeats the purpose.

there's nothing inherently wrong with obfuscating a source of income, although it's hard to do this without committing some sort of fraud along the way. it's a (somewhat distasteful, imo) administrative convenience. people who run criminal enterprises have a variety of methods for distancing themselves from the actual crimes they are making money from. it turns out to be a lot easier to catch them doing funny stuff with money than it is to pin any of the original crimes on them.