View Single Post
Old 06-24-2016, 01:01 PM
md2000 is offline
Join Date: Feb 2009
Posts: 15,179
Originally Posted by MichaelEmouse View Post
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?

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.

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.
First - the problem is that any transactions are likely to attract the attention of the IRS. The problem with illegal money, is that it is cash. Using large amounts of cash is instantly going to attract the attention of the IRS and the Secret Service. Transactions over $10,000 must be reported. Structuring activities to avoid that limit is also a crime. (I.e. 10 deposits of $9,000). Financial institutions are required to report activity that appears suspicious, too. You want to deal truckloads of meth or bricks of cocaine, how do you turn pallets of cash into bank deposits so you write cheques for your Porsche and big mansion? A plumber doing occasional jobs under the table will likely get away with it, a major drug dealer has probably already attracted the attention of the DEA at least.

Seizing the money is just the first step. Then, they investigate the chain of money. Anyone who is participating will face indictment. While legitimate businesses might be able to use offshore accounts, even the famously private Swiss banks have agreed to cooperate when money laundering for organized crime is involved. (Plus for some tax evasion schemes) How do you propose to set up a company to "loan" you money and still make that company appear legit to the authorities? Loaning money to yourself as a principle in a company is fraud and tax evasion. Which dupe is going to run your company and how long will he keep quiet when faced with jail time? A company with no legitimate purpose? Tax evasion. Deliberate tax evasion is a crime. and so on...

The thing is, the bar is selling all the drinks it can sell. If it pours extra down the drain - well, taking a 25% bath to make their money legit is a small price to pay. IIRC some articles have mentioned typically a 50% loss on money laundering - a cost of doing business. Plus, if they were greedy they could pour the booze into no-name bottles and resell, or give it to the grunt workers, etc. Why bother? Just take the legitimate money.

Last edited by md2000; 06-24-2016 at 01:03 PM.