Accused of Violating Minn. Stat. § 609.496? A Minnesota Concealing Criminal Proceeds Lawyer Explains What’s at Stake.
The phone call or the knock on the door came as a shock. Now, you’re staring at legal documents that mention “Concealing Criminal Proceeds” and Minnesota Statute § 609.496. It’s a complex, serious accusation that can make you feel isolated and misunderstood. You might have been trying to help a friend, conduct a business deal, or simply accept a payment you didn’t fully question. You never intended to be part of a criminal enterprise, but the government is now accusing you of exactly that. The weight of this situation—the threat of a felony conviction, prison time, and a six-figure fine—is immense. It’s a charge that strikes at your reputation, your freedom, and your future. You might be wondering how a single transaction could spiral into a life-altering legal battle.
In this moment of uncertainty, remember this: an accusation is not a conviction. The prosecution has a story they want to tell, but it’s not the only story. I understand the nuances of these complex financial crime allegations. I have seen how prosecutors in Hennepin County, Ramsey County, and across Minnesota build their cases, and I know where to find the weaknesses. From the suburbs of Plymouth and Maple Grove to the city centers of Minneapolis and St. Paul, and in communities like Rochester, St. Cloud, and Duluth, I have defended people just like you. You are facing a powerful opponent in the state government, but you do not have to face them alone. This article will break down the charge against you, the penalties you face, and the strategies we can use to fight back. Your side of the story deserves to be heard, and your rights must be protected.
More Than Just Hiding Cash: The Real Meaning of a Concealing Criminal Proceeds Charge
When you see the phrase “Concealing Criminal Proceeds,” you might picture bags of cash being buried in a backyard. The reality of a Minnesota Concealing Criminal Proceeds charge is often far more subtle and technical. At its core, this law targets the act of legitimizing or hiding money that comes from illegal activities. The prosecution isn’t just focused on the original crime (like drug trafficking or fraud); they’re focused on what you did with the money afterward. They are accusing you of knowingly participating in a financial transaction designed to obscure the illicit origins of those funds.
This means you could be charged even if you had nothing to do with the underlying felony. Perhaps you sold a high-value item like a car or jewelry and accepted a large cash payment. Maybe you allowed a significant amount of money to pass through your bank account as a favor for someone else. In the eyes of the law, if you knew or even had a strong reason to suspect that the money was “dirty,” you could be facing this charge. Facing a Concealing Criminal Proceeds accusation in Minnesota means the government believes you were a crucial link in the chain of a criminal operation, effectively helping to wash the money clean.
The Law Itself: Understanding Minnesota Statute § 609.496
To effectively fight your charge, you first need to understand the exact law the state is using against you. Vague ideas won’t help in court; we must focus on the precise legal language. The entire case revolves around Minnesota Statute § 609.496, titled “Concealing Criminal Proceeds.” This is the playbook the prosecutor will use. Below is the exact text of the law.
609.496 CONCEALING CRIMINAL PROCEEDS.
Subdivision 1. Crime. A person is guilty of a felony and may be sentenced under subdivision 2 if the person:
(1) conducts a transaction involving a monetary instrument or instruments with a value exceeding $5,000; and
(2) knows or has reason to know that the monetary instrument or instruments represent the proceeds of, or are derived from the proceeds of, the commission of a felony under this chapter or chapter 152 or an offense in another jurisdiction that would be a felony under this chapter or chapter 152 if committed in Minnesota.
Subd. 2. Penalty. A person convicted under subdivision 1 may be sentenced to imprisonment for not more than ten years, or to payment of a fine of not more than $100,000, or both.
Subd. 3. Monetary instrument. For purposes of this section, “monetary instrument” means United States currency and coin; the currency and coin of a foreign country; a bank check, cashier’s check, traveler’s check, money order, stock, investment security, or negotiable instrument in bearer form or otherwise in the form by which title to the instrument passes upon delivery; gold, silver, or platinum bullion or coins; and diamonds, emeralds, rubies, or sapphires.
Subd. 4. Payment of reasonable attorney fees. Subdivision 1 does not preclude the payment or receipt of reasonable attorney fees.
The Three Pillars of the Prosecution’s Case Against You
For the state to convict you of Concealing Criminal Proceeds, they can’t just throw accusations at a wall and see what sticks. They must prove, beyond a reasonable doubt, three specific legal elements. Think of these as three pillars holding up their case. If we can knock down even one of these pillars, their entire case against you can crumble. Understanding these elements is the first step in building your defense. We will scrutinize the evidence—or lack thereof—for each one.
- The TransactionThe prosecutor must first prove that you actually conducted a transaction involving a “monetary instrument.” This is a broad definition under Minnesota law. It obviously includes cash, checks, and wire transfers, but it also covers things you might not expect, like stocks, investment securities, precious metals like gold and silver, and even high-value gems like diamonds and rubies. The state needs to show a specific act: a purchase, a sale, a transfer, a deposit. They will use bank records, receipts, surveillance video, and witness testimony to try and establish that you were the one who moved these assets.
- The ValueThis is not a crime for small amounts of money. The statute is crystal clear: the transaction or series of related transactions must involve monetary instruments with a value exceeding $5,000. The state must provide concrete evidence that this threshold was met. They can’t just estimate or guess. They need to prove the value of the currency, checks, or assets involved. For things like gems or bullion, this may require expert appraisals. We can challenge their valuation methods and argue that the state has failed to meet this critical financial requirement of the law.
- The KnowledgeThis is often the most critical and challenging element for the prosecution to prove. It is not enough that the money was from a felony; the state must prove your state of mind. They must show that you either knew the money came from a felony (like drug sales or fraud) or that you had a very strong reason to know. This “reason to know” standard means they will argue that a reasonable person in your shoes would have been highly suspicious. They will point to unusual circumstances, like a deal done entirely in cash, a price that was too good to be true, or secretive behavior, to argue that you deliberately ignored the obvious warning signs.
Beyond the Accusation: The Harsh Penalties You Could Be Facing
A charge of Concealing Criminal Proceeds is not a minor issue; it is a serious felony offense in Minnesota. A conviction carries the potential for life-altering consequences that go far beyond a simple fine or a slap on the wrist. The state legislature has classified this crime severely because it views it as a key component of organized criminal activity. Understanding the full scope of what you are up against is critical as we prepare your defense. The penalties are not just possibilities; they are the weapons the prosecution will use to pressure you.
Felony Penalties
Under Minnesota Statute § 609.496, a conviction for Concealing Criminal Proceeds is a felony. There are no lesser misdemeanor or gross misdemeanor versions of this specific crime. If you are convicted, the judge can sentence you to imprisonment for up to ten years, a fine of up to $100,000, or both. In addition to this severe sentence, you will be placed on probation for a significant period, have to obey strict conditions, and carry the permanent burden of a felony on your record. The penalties for Concealing Criminal Proceeds in Minnesota are designed to be a powerful deterrent, and you need a powerful defense to match.
From the Twin Cities to the North Shore: How These Charges Actually Happen
These charges rarely happen in a vacuum. They arise from real-life situations where lines get blurred and people make decisions under pressure or without full information. Here are a few scenarios that could lead to a Concealing Criminal Proceeds charge in Minnesota.
The Minneapolis Cash Car Deal
You decide to sell your classic car. A buyer contacts you and offers to pay your full asking price of $20,000, but they insist on paying entirely in cash, bundled in rubber bands, during a quick meeting in a Bloomington parking lot. You’re a bit uneasy, but the money is tempting. Later, it’s discovered the buyer is a major figure in a drug trafficking ring, and the cash was direct proceeds. The prosecution could argue that the nature of the transaction—all cash, unusual meeting place—gave you a “reason to know” the funds were illicit.
The St. Paul Family Favor
Your cousin in St. Paul asks for a huge favor. He says he’s receiving a large inheritance but has issues with his bank. He asks to have a $50,000 wire transfer sent to your Eagan bank account, promising you a small amount for your trouble before he moves it to his own account. You agree, wanting to help. It turns out the money is from a sophisticated embezzlement scheme he ran. By allowing your account to be used as a pass-through, you conducted a transaction that helped hide the money’s origin.
The Rochester Real Estate Investment
An acquaintance approaches you with a real estate opportunity in Rochester. They have $100,000 in cash and want you to act as the buyer for a property, putting it in your name temporarily to “streamline the process.” They assure you it’s all above board. You later discover the money came from felony-level investment fraud. Even if you didn’t directly participate in the fraud, by using your name and credit to conduct the transaction, you are now implicated in concealing the proceeds.
The Duluth Bar Buy-In
You work at a bar in Duluth. The owner wants to do some “off-the-books” renovations and offers to sell you a small stake in the business. He asks you to contribute $10,000 in cash, which you combine with his cash to pay a contractor without any formal invoices. You suspect he’s hiding profits to avoid taxes (a felony). By participating in this cash-based transaction knowing the funds were potentially from a felony tax evasion scheme, you could be charged under the statute.
You Are Not Defenseless: Strategies to Fight Your Concealing Criminal Proceeds Charge
When you are facing the full force of the government, it can feel like the fight is already lost. That is not true. The prosecution carries the entire burden of proof, and their case is often built on assumptions, circumstantial evidence, and interpretations that we can challenge. A successful defense strategy begins with a thorough investigation of every detail of your case, from the moment the transaction occurred to the way police conducted their interviews. We will scrutinize every piece of evidence to find the weaknesses and build a powerful counter-narrative.
Your story matters. Perhaps you were genuinely unaware of the source of the funds, or maybe the police are misrepresenting your actions and intentions. Many people are unfairly caught in complex situations they don’t fully understand. My role is to be your advocate, to dissect the state’s arguments, and to present the facts in a way that protects your freedom and your future. There are numerous defenses to Concealing Criminal Proceeds in Minnesota, and the right one will depend on the unique facts of your case.
Lack of Knowledge or Intent
This is the cornerstone of many strong defenses. The state must prove not only that you conducted a transaction, but that you knew or had a clear reason to know that the money was dirty. We can aggressively challenge the prosecution’s evidence regarding your state of mind.
- No Direct Knowledge: We will work to show that you had no actual, direct knowledge of the underlying felony. You were not an accomplice to the crime and were kept in the dark about the true source of the funds. Your involvement was innocent, even if it appears suspicious in hindsight.
- No “Reason to Know”: The state’s claim that you “had reason to know” is subjective and open to attack. We can argue that the circumstances were not as suspicious as the prosecutor claims and that a reasonable person in your exact situation would not have concluded the money was from a felony. We will present your side of the story to show your actions were logical and not willfully blind.
The Value Threshold Was Not Met
The law is absolute: the transaction value must exceed $5,000. If the state cannot definitively prove this amount, the charge cannot stand. This defense involves a detailed financial analysis.
- Incorrect Valuation: The state may have improperly valued the assets involved. For non-cash instruments like jewelry, art, or securities, we can hire our own appraisers to challenge the prosecution’s valuation and show the actual value is $5,000 or less.
- Separate, Unrelated Transactions: The prosecution may try to lump together multiple, smaller transactions to meet the $5,000+ threshold. We can argue that these were distinct, unrelated events and that no single transaction met the statutory requirement, making the charge invalid.
No Underlying Felony Offense
The law requires the proceeds to come from a specific type of crime: a felony under Minnesota Statutes Chapter 609 (Criminal Code) or Chapter 152 (Drugs, Controlled Substances), or an out-of-state equivalent. If the source of the funds doesn’t qualify, your charge is baseless.
- Source of Funds Was Not a Felony: We may be able to demonstrate that the money came from a non-criminal source, a civil dispute, or at worst, a misdemeanor offense. If there is no qualifying felony, there can be no crime of concealing criminal proceeds.
- Failure to Prove the Felony: The state must be able to prove that the underlying felony actually occurred. If the person who allegedly committed the initial crime is acquitted, or if there is insufficient evidence a felony ever happened, their case against you for concealing the proceeds will likely fail.
The Transaction Was Lawful
Sometimes, a transaction that looks suspicious on the surface is perfectly legitimate. The statute itself carves out a specific exception, and other legal principles can protect you.
- Reasonable Attorney’s Fees: The statute explicitly states that receiving payment for reasonable attorney’s fees is not a crime. If the transaction in question was for the legitimate payment of legal services, this is a complete defense to the charge.
- Legitimate Business Transaction: We can present evidence to show that the transaction was a normal, arms-length business deal. By providing contracts, invoices, and correspondence, we can create a clear record that your actions were commercially reasonable and not an attempt to launder money.
Your Urgent Questions About Concealing Criminal Proceeds, Answered
Will I definitely go to jail for Concealing Criminal Proceeds in Minnesota?
Not necessarily. While the maximum penalty is ten years in prison, it is not a mandatory sentence. An aggressive and well-prepared defense can lead to a number of better outcomes, including getting the case dismissed entirely, securing a not-guilty verdict at trial, or negotiating for a resolution that avoids prison time, such as probation or a reduction to a less serious offense. The outcome depends heavily on the facts of your case and the quality of your legal representation.
Can a felony Concealing Criminal Proceeds charge be dismissed?
Yes, it is possible. A dismissal can occur if we can show that the police violated your constitutional rights during the investigation, such as through an illegal search. A case can also be dismissed if we can prove to the prosecutor or the judge before trial that the state simply does not have enough evidence to prove one of the key elements of the crime beyond a reasonable doubt.
Do I need a lawyer for a charge like this in Minneapolis or St. Paul?
Absolutely. This is a complex felony charge with severe penalties. The prosecution in jurisdictions like Hennepin County and Ramsey County is experienced and well-funded. Trying to navigate this system alone is incredibly risky. You need a defense attorney who understands financial crime statutes, local court procedures, and how to build a powerful defense to protect your rights and future.
How long does a charge like this stay on my record in Minnesota?
If you are convicted, a felony for Concealing Criminal Proceeds will stay on your criminal record permanently. It can be seen by employers, landlords, and anyone who runs a background check for the rest of your life. While Minnesota law allows for the possibility of expungement for some offenses, the process is difficult and not guaranteed. The best strategy is to fight the charge aggressively from the start to avoid a conviction in the first place.
What is the difference between this and money laundering?
Concealing Criminal Proceeds under Minnesota Statute § 609.496 is Minnesota’s state-level version of money laundering. The term “money laundering” is more commonly associated with federal law, but the underlying concept is the same: conducting financial transactions to hide the illegal source of funds. If your case involves transactions across state lines or involves the federal banking system, you could potentially face federal charges as well.
The police want to talk to me. What should I do?
You should politely decline to answer any questions and state clearly, “I am exercising my right to remain silent, and I want to speak with my lawyer.” Anything you say to the police can and will be used against you, even if you believe you are innocent and just want to “clear things up.” Speaking to law enforcement without an attorney present is one of the most dangerous mistakes you can make.
What if I didn’t receive any of the money for myself?
It doesn’t matter. The law does not require you to have profited from the transaction. Simply conducting the transaction for someone else, knowing the funds were from a felony, is enough to be charged. The focus of the statute is on the act of “washing” the money, not on who ultimately benefits from it.
What if the underlying felony was committed by a friend or family member?
The law makes no exceptions for personal relationships. Helping a friend, spouse, or family member hide illicit funds is still a crime. While your motive may have been based on loyalty, the prosecution will focus only on your actions and your knowledge of the situation.
Is accepting cryptocurrency considered a “monetary instrument”?
The statute’s definition of “monetary instrument” is broad but was written before cryptocurrency became widespread. However, a prosecutor could argue that digital assets fall under the category of “investment security” or are analogous to other forms of currency. This is a developing area of law where having a knowledgeable attorney is critical to challenge the state’s interpretation.
What if I suspected something was wrong but wasn’t sure?
This is exactly what the “reason to know” standard is about. The prosecutor will argue that your suspicion was enough—that you were “willfully blind” to the facts. A key part of your defense will be to argue that your level of suspicion did not rise to the level of “reason to know” and that your actions were reasonable under the circumstances.
Can they seize my assets before I’m even convicted?
Yes. Under civil forfeiture laws, the government can seize assets they believe are connected to criminal activity, including the money or property involved in your case, even before a conviction. Fighting to get your property back is a separate legal battle that often happens alongside the criminal case.
How much does it cost to hire a lawyer for this kind of case?
The cost of a private criminal defense attorney varies. Most will charge a flat fee for representation, which covers all work through trial. While it is a significant investment, it is an investment in your freedom and your future. The long-term cost of a felony conviction—in terms of lost jobs, fines, and other consequences—is far greater.
What if the “proceeds” were from a federal crime, not a Minnesota one?
The statute applies if the proceeds are from a crime that would be a felony under Minnesota’s criminal code or drug laws if it had been committed here. This means you can be charged in Minnesota for concealing proceeds from a qualifying felony that happened in another state or was prosecuted federally.
Does it matter if the transaction happened online?
No, the location of the transaction does not matter in that sense. A wire transfer initiated from your laptop in Plymouth or an online purchase made from your home in Maple Grove is still a “transaction” that can be prosecuted in the county where you reside.
The statute mentions an exception for attorney’s fees. Can you explain that?
The law specifically says that a lawyer receiving “reasonable attorney fees” is not committing this crime. This protects the constitutional right to counsel. It allows you to use your funds, even if their source is being questioned by the government, to hire an attorney to defend you against those very charges.
The Ripple Effect: How a Conviction Changes Your Future
A felony conviction for Concealing Criminal Proceeds is more than just a sentence; it’s a permanent mark that creates lifelong obstacles. The formal penalties of prison and fines are only the beginning. The collateral consequences, as they are known, will follow you long after you have paid your debt to society, impacting nearly every aspect of your personal and professional life.
Your Right to Own a Firearm
A felony conviction in Minnesota results in a lifetime ban on your right to possess a firearm. You will be forced to surrender any guns you own and will be prohibited from ever purchasing or even being in the physical presence of one again. For those who hunt, engage in sport shooting, or simply wish to have a firearm for personal protection, this right will be permanently extinguished.
Criminal Record and Your Career
Perhaps the most damaging consequence is the creation of a permanent felony record. In today’s digital world, nearly every employer, from small businesses in Eagan to large corporations in Minneapolis, runs background checks. A conviction for a financial crime like this can be a complete barrier to employment, especially in fields related to finance, management, or any position that requires handling money or holding a professional license. You could lose the career you’ve built and be blocked from future opportunities.
Housing, Education, and Loans
Your felony record can make it extremely difficult to find safe and stable housing. Many landlords in competitive rental markets like St. Paul or Rochester will automatically deny applicants with a felony conviction. Similarly, getting accepted into college or graduate programs can become much harder. A felony drug-related conviction can impact federal financial aid, and a conviction for a crime of dishonesty can prevent you from obtaining the student loans you need to advance your education.
Immigration Consequences for Non-Citizens
If you are not a United States citizen, a conviction for Concealing Criminal Proceeds can have devastating immigration consequences. This type of offense is almost certainly considered a “crime involving moral turpitude” (CIMT). A CIMT conviction can make you deportable, even if you are here legally with a green card. It can also prevent you from ever re-entering the country or becoming a naturalized U.S. citizen.
Don’t Go It Alone: Why the Right Legal Ally is Crucial
Facing a felony charge for Concealing Criminal Proceeds is not a situation you should ever try to handle by yourself or with an overworked public defender. The stakes are simply too high. You need a dedicated, private criminal defense attorney who can devote the time, resources, and aggressive strategy your case demands. This is a fight for your life as you know it, and the choice of who stands with you is the most important decision you will make.
The Advantage of a Focused Defense
Unlike a public defender’s office, which may be juggling hundreds of cases at once, as your private attorney, I will be focused on you. Your case will receive my full attention. I will personally handle every aspect of your defense, from dissecting the evidence and interviewing witnesses to negotiating with the prosecutor and, if necessary, fighting for you in the courtroom. You get a direct line of communication and a strategy tailored specifically to the facts of your case, not a one-size-fits-all approach.
How Acting Fast Can Change Everything
The most critical window in a criminal case is often the very beginning. By hiring an attorney immediately, you give me the chance to get involved before charges are even formally filed. I can contact the prosecutor, present your side of the story, and point out the weaknesses in their investigation. This early intervention can sometimes persuade the prosecution to file less serious charges or even decline to file charges altogether. Waiting only allows the state to build a stronger case against you.
Deep Knowledge of Minnesota Courts
Navigating the criminal justice system is about more than just knowing the law; it’s about knowing the people and the procedures. Whether your case is in the Hennepin County Government Center in Minneapolis, the Ramsey County Courthouse in St. Paul, or a courtroom in Duluth or St. Cloud, I understand the local landscape. I know the prosecutors, the judges, and their tendencies. This local knowledge is an invaluable asset when it comes to negotiating a plea, arguing motions, and developing a trial strategy that will resonate in that specific courtroom.
Building a Case Designed for Results
My goal is always to achieve the best possible outcome for you. That could mean a full dismissal of the charges, a not-guilty verdict after a jury trial, or a favorable plea agreement that avoids a felony conviction and keeps you out of jail. We achieve these results by being more prepared, more thorough, and more aggressive than the prosecution. We will build your defense brick by brick, challenging the state’s evidence, filing powerful legal motions, and preparing to tell your story in the most compelling way possible. Your future is on the line, and you need a defense built to protect it.