U.S. Appellate Court Upholds Money Laundering Charges for Tax Crimes

"On June 17, 2008, the U.S. Court of Appeals for the Third Circuit overturned a dismissal of a case charging defendants with money laundering related to tax offenses involving legal sources. The District Court of the Virgin Islands (Division of St. Croix) dismissed from an indictment counts related to international money laundering under 18 U.S.C. § 1956. The government appealed on the issue of whether unpaid taxes that were unlawfully disguised and retained by the filing of false tax returns through the U.S. mailed were ?proceeds? of mail fraud for purposes of sufficiently stating an offense for money laundering...[more]"