Legal Question in Criminal Law in California

Is it legal to possess or carry large sums of cash (say $20K or $50K)?

Will I be arrested for drug dealing or money laundering?

I am selling a home and will receive $400K. I am concerned about how best to manage the cash off the grid (outside of my bank). Should I retain a lawyer so I can be prepared to defend myself in the event I am illegally arrested or framed?

I read horror stories of people being illegally arrested, their large sums of cash confiscated, and being charged with drug dealing or money laundering even though the DA has no evidence. The defendants have to defend against fabricated charges. Defendants are presumed guilty until proven innocent. This is unconscionable and unconstitutional.


Asked on 7/12/23, 10:11 pm

3 Answers from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

It's legal to keep or carry large amounts of cash. But if there is other reason to suspect you of crimes that would lead to having lots of cash, having it will add to those suspicions. People who really are drug dealers or money launderers often have innocent sources of cash too. (They also often worry about being arrested and having the fact they possessed large amounts of cash used against them.) Being able to show you received a lot of cash from an innocent source will help, but it won't prove that any particular cash is from that source.

One advantage of using the banking system is that, unlike cash, it creates a paper trail. But a paper trail is often the last thing someone who avoids the banking system and worries about being framed would want.

Read more
Answered on 7/13/23, 1:10 pm
Terry A. Nelson Nelson & Lawless

No, it is not illegal, but if law Enforcement finds it on you, they will immediately suspect you of some criminal activity and seize it as 'evidence'. It happens all the time, and seldom turns out well for the person trying to recover the money, who will spend significant legal fees trying to do so.

Read more
Answered on 7/14/23, 7:30 am
Terry A. Nelson Nelson & Lawless

Supplement to my answer to your first post:

The crime you would be suspected of in trying to go 'off grid' would be 'failure to pay IRS the taxes due on the proceeds'. The escrow company involved would not likely pay you in cash anyway.

Read more
Answered on 7/14/23, 7:33 am


Related Questions & Answers

More Criminal Law questions and answers in California