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Old 06-24-2016, 12:30 PM
MichaelEmouse's Avatar
MichaelEmouse is offline
Join Date: Jan 2010
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Do I understand correctly that if someone doesn't attract the attention of the cops such that they do digging into his tax history and start asking how he got the money for his belongings, he can pretty much spend and own as much as he likes?

Originally Posted by md2000 View Post
As I understand it, the feds can simply say "we believe this is income" and then it's a matter of preponderance of evidence to show this was a legitimate loan from a legitimate company. Then the principals of the loan company have to show up in court and explain how their business works, where they got the money, why it was a legitimate loan, and so on.

the whole process gets complicated, and as the linked article shows, the problem is in creating a viable false front. Without enough participants it's hard to fake a functional business. one thing I read said this is why the "mob" liked to buy legit businesses like pizza places that get a decent amount of money much of it cash, and sort of layer in the illegitimate proceeds as extra sales. (Remember the scene in Breaking Bad where the wife is punching in premium price sale after sale when nobody is around.) And then, if you funnel to much in fake sales, it becomes obvious that the location is doing an unreasonable amount of business - and the feds would likely stake out the place for a while to compare observed traffic with claimed throughput.
When it comes to one's tax bill, it is indeed about preponderance of evidence. For criminal prosecution, the threshold is beyond reasonable doubt. That sounds like it would be a lot of difficult to prove.

Originally Posted by Little Nemo View Post
But they're a bar. Their business is selling five dollar shots of Stoli. Every time they threw out a bottle of Stolis they were throwing out the sixty dollars of profit they would have made by serving it legitimately and replacing it with sixty dollars of illegal profits. How is that coming out ahead? They might as well quit the crime business and run a legitimate bar.
They would make 60$ of profits if they had enough customers to sell it to. Failing that, they turn 80$ of dirty money into 60$ of apparently clean money.

Last edited by MichaelEmouse; 06-24-2016 at 12:30 PM.