Suffolk County District Attorney Daniel F. Conley today voiced his support for Massachusetts Attorney General Martha Coakley’s filing of An Act to Combat Economic Crime, a comprehensive proposal for economic crime legislation that specifically updates state law in the areas of money laundering, enterprise crime, and wire interception.
“Acting alone or in concert, criminals aren’t waiting for Massachusetts laws to catch up with their enterprises,” Conley said. “They’re exploiting the lag between technology and accountability. Any step that will close that gap is one I’m proud to support.”
Coakley filed the bill Aug. 4 with support from Conley and the Berkshire, Bristol, Cape & Islands, Essex, Middlesex, Northwestern, and Plymouth district attorneys, as well as a dozen members of the Massachusetts Legislature.
“As our economy has struggled in recent years, we have seen criminals engage in more sophisticated, organized, and often large-scale schemes to steal money or otherwise profit from illegal conduct,” Coakley said. “Crimes such as money laundering and engaging in corrupt business enterprises are very difficult to prosecute at the state level because police and prosecutors simply do not have the necessary tools to investigate such crimes. Particularly as we explore the possibility of expanded gaming in the Commonwealth, it is critical that we have the statutory structure in place to address the types of financial crimes and corruption that may be associated with legalized gaming.”
If passed, the new legislation would update Massachusetts law in three key areas:
Money Laundering – Money laundering, which entails concealing the source of illegally obtained money, is frequently linked to large-scale, illegal enterprises such as terrorism, narcotics trafficking and other organized crime, and is particularly prevalent where casino gaming is legal. Coakley’s bill would make it a crime to engage knowingly in a financial transaction derived from criminal activity with the intent to promote, carry on, or facilitate criminal activity. Under the proposed new law, the crime of money laundering would carry a maximum penalty of six years in state prison, or up to eight years for a repeat offense.
Enterprise Crime – The legislation also focuses on traditional and non-traditional criminal enterprises and organizations, including so-called organized crime families and traditional street gangs, organized retail crime rings, identity theft rings, large-scale drug and human trafficking groups. Many of these organizations have sophisticated structures and extensive supporting networks, allowing them to engage in such criminal activities as money laundering, illegal gaming, running drugs and firearms, credit card and identity theft, and other types of fraud. The bill will prohibit patterns of certain crimes committed by corrupt enterprises, allowing the ring leaders and major players, who control and direct the enterprise but often do not partake in the actual commission of the crime, to be held accountable. Under the proposed new law, such activity would carry a minimum penalty of five years in State Prison, and a maximum of 15 years.
Wire Interception – Last updated in 1968, the Massachusetts wire interception statute has not been updated to address either the technological advancements in tele-communications or the changes in the nature and structure of criminal enterprises over the past 40 years. This bill updates the existing wire interception law, including adding a definition for “electronic communication,” designating new crimes eligible for the use of a lawful interception, and extending the amount of time that a lawful interception can remain open from 15 to 30 days. The bill also allows court-approved one-party consent monitoring and recording of conversations regarding certain crimes.
