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by yelnatz 1476 days ago
Can someone explain why this is money laundering? Trying to understand what laws he's breaking.
2 comments

From Wiki [0]:

> In US law, money laundering is the practice of engaging in financial transactions to conceal the identity, source, or destination of illegally gained money.

Secretly transferring money out of your company to locations where you may at an opportune time be able to personally withdraw it seems to match the description very well. To put another way, even if you own 100% of your company, your company's money is not your personal money. Trying to make it so while concealing it and avoiding taxes etc is a crime.

[0] https://en.wikipedia.org/wiki/Money_laundering

The correct phrasing then should be embezzlement.
I agree the base crime here appears to be embezzlement. However the actions taken to conceal the embezzlement may be considered laundering. Most embezzlements do involve hiding the money movements, so I would only expect it to be laundering if he mixed the funds with legitimate funds in order to conceal their source. I don't see that in the article.
It all falls under wire fraud.

https://www.law.cornell.edu/wex/wire_fraud

If money is speech, this law seems fairly obviously unconstitutional.
Is money laundering what he is being accused of? It seems more like fraud, embezzlement, and securities law violations.
It seems like his actions of secretly sending money triggered money laundering suspicions from the SEC.

But yea, this is fraud/embezzlement/wire fraud.

He is being accused of nothing, because no charges have been filed.

They will formally charge him with something like money laundering because it is the easiest to prove (you don't need intent, just concealment) and more charges will be added later.