Peter D. Hardy

Partner

Philadelphia

Tel 215.864.8838
Fax 215.864.8999

Washington, DC

Tel 202.661.2206
Fax 202.661.2299

Peter Hardy, a former federal prosecutor, is a national thought leader on the subject of money laundering, anti-money laundering and criminal tax law. He co-leads and is the founder of the firm's Anti-Money Laundering Team, and also co-leads the Tax Controversy Team. Peter edits and frequently contributes to Money Laundering Watch, Ballard Spahr's blog devoted to criminal and regulatory money laundering issues. He is the author of Criminal Tax, Money Laundering, and Bank Secrecy Act Litigation, a well-reviewed and comprehensive legal treatise concerning the investigation, prosecution and defense of criminal tax, money laundering, and Bank Secrecy Act cases, published by Bloomberg BNA. Peter also serves as the Co-Chair for the Practising Law Institute's annual Anti-Money Laundering Program, and serves on the Steering Committee for the Cambridge Forum on Sanctions & AML Compliance.

Peter advises corporations and individuals across a range of industries against allegations of misconduct, including money laundering, tax fraud, mortgage fraud and lending law violations, securities fraud, public corruption, Foreign Corrupt Practices Act violations, and other financial fraud. Peter also counsels financial institutions and businesses on their anti-money laundering obligations under the Bank Secrecy Act and other compliance requirements, including issues involving money transmission, digital assets and cryptocurrency, cannabis and anti-corruption.

Services

Experience

Representative Matters

Conducted numerous corporate internal investigations across a spectrum of industries, including investigations focused on potential BSA/AML, money laundering, tax, other financial fraud and securities violations, prompted by allegations by federal government, private plaintiffs and/or company insiders and would-be whistleblowers. These engagements frequently involve advising on the response to criminal, civil and administrative government subpoenas, investigations and examinations.
Advised financial institutions and other companies, including non-bank lenders and real estate industry participants, on technical regulatory compliance with BSA/AML, counter-terrorism financing, and anti-corruption requirements. This work includes the drafting and revising of compliance policies and procedures; developing risk assessments; advising whether a SAR filing(s) is appropriate; conducting AML due diligence during M&A transactions; determining whether to close customer accounts; helping institutions respond to government regulatory examinations, investigations and subpoenas; determining whether a business should register as a money services business or money transmitter; FCPA compliance; and providing BSA/AML advice specific to issues involving cryptocurrency, digital assets and cannabis.
Successfully defended major international corporation in wide-ranging criminal tax investigation and civil tax audit relating to 10-figure inter-company transaction and nine-figure monetary liability. Result: No criminal charges and no fraud penalty.

Successfully defended major financial institution in multiple complex civil lawsuits alleging that the financial institution violated its own BSA/AML procedures and contributed to misconduct perpetrated by former customers.
Successfully defended financial institution against aggressive discovery motions seeking sensitive financial institution BSA/AML materials, including BSA/AML/anti-fraud policies and internal investigatory documents generated through the financial institution’s AML transaction monitoring processes.
Successfully defended major insurance company in regulatory investigation relating to multi-billion dollar tax structures involving related businesses and offshore entities.
Successfully defended numerous individuals and businesses accused of multi-million dollar federal tax fraud schemes, including income tax evasion and payroll schemes.
Assisted major industry group in drafting comment letter to FinCEN regarding proposed AML regulations.
Advised financial institutions and other businesses on BSA/AML and money transmitter issues relating to the institutions’ direct use of blockchain or cryptocurrency, including issues relating to hosting blockchain nodes, serving as an “omnibus” cryptocurrency bank, and potentially issuing stablecoins, or to the institutions’ customers use of blockchain or cryptocurrency, including the exchange of cryptocurrencies and fiat currencies and the implementation of a cryptocurrency ATM business.
Engaged as an expert witness regarding application of FinCEN and U.S. banking rules to activity involving use of blockchain and digital assets.
Represented investment firm under investigation by the SEC for inter-fund loans involving alleged conflicts of interest, and pursued related constitutional litigation regarding the ability of the SEC to pursue administrative enforcement actions that was the first of its kind.
Successfully convinced IRS to abate entire potential seven-figure penalty for gaming institution client which allegedly failed to file IRS reporting forms for winnings by internet sports betting clients.

Professional Highlights

Judicial Clerkships

The Hon. George E. Woods, U.S. District Court for the Eastern District of Michigan

The Hon. Cornelia G. Kennedy, U.S. Court of Appeals for the Sixth Circuit

Professional Activities

Co-Chair, Practising Law Institute, Anti-Money Laundering Program

Fellow, American College of Tax Counsel

American Bar Association, Section of Taxation

Federal Bar Association for the Eastern District of Pennsylvania, Criminal Law Committee

Recognition & Accomplishments

Outstanding Attorney Award, Tax Division, U.S. Department of Justice

Chambers USA, Litigation: White-Collar Crime & Government Investigations (Pennsylvania), 2021-2024

The Best Lawyers in America, Tax Law, Criminal Defense: White-Collar (Philadelphia), 2019-2025; Corporate Compliance Law (Philadelphia), 2023-2025; Administrative/Regulatory Law (Philadelphia), 2023, 2024

JD Supra Readers' Choice Award, #1 in White-Collar Defense, 2024

Legal 500, Dispute Resolution - Corporate Investigations and White-Collar Criminal Defense, 2024

Speaking Engagements

Speaker, "The Future of the Bank Secrecy Act: Regulatory Developments and Reform," CFS in Turbulent Times webcast series, December 11, 2020

Speaker, "Future of BSA: Legislative Proposals, Regulatory Developments, and PPP Lending webinar," Credit Union National Association, November 23, 2020

Panelist, "Defenses to Tax Crimes: Attacking Willfulness," IRS Representation Conference, November 20, 2020

Speaker, "Cannabis Banking Issues," National Association of Federally-Insured Credit Unions, July 9, 2020

Speaker, "Money Laundering and the Real Estate Industry," Real Estate Services Providers Council, May 20, 2020

Presenter, "Anti-Money Laundering 2020: Risks, Due Diligence and Compliance in an Evolving Legal World," Practising Law Institute, May 12, 2020

Speaker, "Anti-Money Laundering Issues and COVID-19: Fraud Concerns for Financial Institutions and Opportunities for Non-Bank Lenders," Ballard Spahr webinar, April 20, 2020

Speaker, "A Look at Two Recent OCC Bank Secrecy Act/Anti-Money Laundering Consent Orders: Lessons Learned" Consumer Finance Monitor Podcast, April 2, 2020

Moderator, "Charging Cryptocurrency Violations–Tax Crimes or Money Laundering," ABA 36th Annual National Institute on Criminal Tax Fraud and Tax Controversy, Las Vegas, December 12, 2019

Speaker, "Anti-Money Laundering Enforcement and Reform: What You Need to Know," Banking and Financial Services CLE Institute, Philadelphia, May 23, 2019

Speaker, "Cannabis and the Financial Services Industry," Ballard Spahr webinar, April 10, 2019

Speaker, "Art Market as a Node of Kleptocracy," New Directions in Anti-Kleptocracy Forum, New York City, April 2, 2019

Moderator, "Current Issues in Bank Secrecy Act Compliance for the Gaming Industry," Ballard Spahr event, December 17, 2018

Speaker, "Must Do Motions: A Check List for Criminal Cases," ABA 35th Annual National Institute on Criminal Tax Fraud and Eighth Annual National Institute on Tax Controversy, Las Vegas, December 14, 2018

Speaker, "Anti-Money Laundering and the Securities Industry," North American Securities Administration Association, September 12, 2018

Speaker, "Anti-Money Laundering and Trust Companies," South Dakota Trust Association, July 25, 2018

Panelist, "Legal Considerations of Cryptocurrency and Blockchain," The Philadelphia Bar Association Business Law Section's Banking & Commercial Finance, Cyberlaw, and Securities Regulation Committees CLE, Philadelphia, June 26, 2018

Speaker, "Bitcoin & Cryptocurrencies – Implications for Wealth Management,"Montgomery County Estate Planning Council of PA, Gwynedd, PA, April 23, 2018

Panelist, "Working with Inbound Investors & Businesses – Some Things You May Not Think About May Hurt You," University of Florida Levin College of Law's 2018 Florida Tax Institute, Tampa, Florida, March 1, 2018

Speaker, "Mastering Bitcoin, Blockchain, and Digital Currency Law," Ballard Spahr webinar, December 20, 2017

Speaker, "AML Obligations of Broker-Dealers and Current Issues in the SPAC Market," New York State Bar Association Securities Regulation Committee Meeting, New York City, December 13, 2017

Speaker, "Criminal Trial Practice: How to Build Your Case and Challenge the Government's Evidence," ABA 34th Annual National Institute on Criminal Tax Fraud and Seventh Annual National Institute on Tax Controversy, Las Vegas, December 7, 2017

Speaker, "Eye on Virtual Currency and Blockchain Technology," Ballard Spahr webinar, September 19, 2017

Speaker, "Current Trends in Criminal Law: The Mechanics of Virtual Currency, From Legitimate Use to Misuse," Lawline webinar, September 7, 2017

Speaker, "Offshore Enforcement: How Will They Prove It?" 33rd Annual National Institute on Criminal Tax Fraud and the Sixth Annual National Institute on Tax Controversy, Las Vegas, December 8, 2016

Speaker, "Criminal Investigation and Prosecution of Tax Preparers," The New England IRS Representation Conference, Ledyard, Connecticut, November 18, 2016

Speaker, "The Office of Professional Responsibility Hearing," The New England IRS Representation Conference, Ledyard, Connecticut, November 18, 2016

Speaker, "The United States as a Potential Tax Haven: Foreign Assets and Potential Money Laundering Exposures for Lawyers and Other Gatekeepers," Pennsylvania Association of Criminal Defense Lawyers (PACDL), Philadelphia, November 11, 2016

Panelist, "7th Annual Emerging Ethical Issues in Tax Practice," New Jersey Institute for Continuing Legal Education, Mount Laurel, New Jersey, October 17, 2016

Panelist, "It's a Small World After All: Evidence in Offshore Noncompliance Cases," American Bar Association Tax Section Joint Fall Meeting, Boston, October 7, 2016

Speaker, "New York's Final Anti-Money Laundering Rule – The Brave New World of AML Compliance," Ballard Spahr webinar, July 27, 2016

Speaker, "Turning the Tables: The United States as a Tax Haven Destination," ABA Section of Taxation, July 20, 2016

Speaker, "FinCEN's Customer Due Diligence Final Rule – What You Need To Know," Ballard Spahr webinar, June 2, 2016

Speaker, "Federal Sentencing: Maximizing Client Outcomes from the Investigation to Post-Sentencing," Lawline CLE webinar, May 17, 2016

Panelist, "Turning the Tables: The United States as a Tax Haven Destination," ABA Section of Taxation May Meeting, Washington, D.C., May 7, 2016

Speaker, "The CFPB's New Report on Elder Abuse and What Financial Institutions Need to Do in Response," Ballard Spahr webinar, May 6, 2016

"2016 Bank Secrecy Act Seminar," PA Bankers Association, May 3, 2016

"Developments in Bank Secrecy Act – Anti-Money Laundering Compliance and Enforcement," Ballard Spahr webinar, April 26, 2016

Panelist, "2016 Employment Tax Forum," Post & Schell Conference Center, Philadelphia, February 25, 2016

Panelist, "Criminal Tax Workshop," American Bar Association's (ABA) Criminal Tax Fraud and Tax Controversy 2015, Las Vegas, December 9, 2015

Panelist, "The Accountant’s Role in a Criminal Tax Investigation," and "The New IRS 8300 BSA Exam: From Routine Compliance to Criminal Prosecution," 2015 New England IRS Representation Conference, Foxwoods Casino, Connecticut, November 20, 2015

Panelist, "Should five percent appear too small; Be thankful I don’t take it all – The Federal Taxman’s Recent Enforcement Angles," Pennsylvania Association of Criminal Defense Lawyers' (PACDL) 2015 White Collar Practice Seminar, Philadelphia, November 12, 2015

Panelist, "Ethical Issues During a Criminal Tax Trial," 2015 Emerging Ethical Issues in Tax Practice, New Jersey Institute for Continuing Legal Education, Fairfield, N.J., October 21, 2015

Panelist, " IRS Seizure and Forfeiture: A New Day, or More of the Same," ABA Section of Taxation 2015 May Meeting, Washington, D.C., May 9, 2015

Panelist, "A Look Inside an IRS Criminal Tax Investigation," ABA Section of Taxation 2015 May Meeting, Washington, D.C., May 8, 2015

Panelist, "Bitcoins: What You Need to Know About Virtual Currency," ABA CLE webinar, March 25, 2015

Panelist, "When the Company is the Target: Ethical and Other Issues," ABA Criminal Tax Fraud and Tax Controversy 2014, Las Vegas, December 11, 2014

Panelist, "Tax Status and Tax Treatment of Virtual and Digital Currency and the Implications of Its Use for Taxation," American Conference Institute's (ACI) Virtual & Digital Currency and Payment Systems Conference, New York, November 21, 2014

Moderator, "Deputizing Banks: Anti-Money Laundering Enforcement and Your Banker as Watchdog – or Criminal Defendant," PACDL 2014 White Collar Practice Seminar. Philadelphia, November 13, 2014

Moderator, "Bitcoin and Virtual Currency: Innovation and Enforcement," Bloomberg BNA Webinar, October 15, 2014

Panelist, "Bitcoins: What You Need to Know About Virtual Currency," 2014 Joint Fall Meeting of the ABA Section on Taxation, Denver, September 20, 2014

Panelist, "Sentencing and Incarceration Considerations When Representing the Guilty Client," ABA CLE Webinar, July 30, 2014

Panelist, "Criminal & Civil Aspects of the Bank Secrecy Act," ABA Section of Taxation CLE Webinar, April 23, 2014

Panelist, "Defending the White Collar Case," Pennsylvania Bar Institute (PBI) CLE Program, Philadelphia, February 18, 2014

Panelist, "Examining Criminal Aspects of the Bank Secrecy Act," ABA Section of Taxation's 2014 Mid-Year Meeting, Phoenix, January 24, 2014

Panelist, "Sentencing and Incarceration Considerations When Representing the Guilty Client," ABA 30th Annual National Institute on Tax Controversy, Las Vegas, December 13, 2013

Moderator, "Money & Time: Sentencing Trends in Criminal Tax Cases," PACDL White Collar Practice Seminar, Philadelphia, November 14, 2013

Moderator, "Criminal Tax Sentencing: Fairness and Deterrence," Villanova University Law School Norman J. Shachoy Symposium, Villanova, Pa, September 27, 2013

Panelist, "Immigration: Consequences of Criminal Convictions and Enforcement Initiatives," Federal Bar Association, Criminal Law Committee, Philadelphia, February 8, 2013

Panelist, "Navigating The Brave New World of Immigration," Philadelphia, October 2, 2012

Panelist, "Protecting Assets: Yours and Your Client's," Federal Bar Association, Criminal Law Committee, Philadelphia, May 18, 2012

Panelist, "White Collar Sentencing Issues For Money Laundering and Tax, Securities and Mortgage Fraud Cases," Webcast for CLE, West LegalEd Center January 25, 2012

Panelist, "The Money Laundering Trap: How to Avoid It, and How to Climb Out of It," Webcast for CLE, West LegalEd Center, December 8, 2011

Panelist, “Criminal Tax Cases: Hot Buttons and Hot Topics,” ABA Annual Meeting, Toronto, August 6, 2011

Panelist, "Tax Fraud 2011: Offshore Accounts, FATCA, and Changes You Should Know," Webast for CLE, West LegalEd Center, April 5, 2011

Panelist, "Ethically Navigating the Modern Tax Fraud Case Post-UBS," National Association of Criminal Defense Lawyers' White Collar Seminar, Fordham Law School, New York, October 1, 2010

Panelist, “Defusing Data Privacy, Confidentiality & Security Land Mines,” The 16th Annual Health Law Institute of the Pennsylvania Bar Institute, Philadelphia, March 12, 2010

Board Memberships & Community Service

Rebuilding Together Philadelphia, Honorary Board Member and Past President of the Board

Esperanza Immigration Legal Services, Board Member

Publications

Co-author, "Whistle in confidence - US Anti-Money Laundering Act 2020," Money Laundering Bulletin, February 1, 2021

Co-author, "U.S. Passes Historic BSA/AML Legislative Change," Money Laundering Watch blog, January 5, 2021

Quoted, "Defense Bill To Usher In New Era For Anti-Money Laundering," Law360, December 10, 2020

Quoted, "FinCEN Files seem unlikely to alter US approach to BSA/AML enforcement," S&P Global Market Intelligence, September 24, 2020

Co-author, "The Intersection of Money Laundering and Real Estate," 2020 Guide on AML by the International Comparative Legal Guides, May 2020

Co-author, "The SEC's New Enforcement Tool?" Law360, July 12, 2017

Co-author, "2016 Year in Review: Money Laundering (Part Two)," Money Laundering Watch, February 6, 2017

Co-author, "2016 Year in Review: Money Laundering (Part One)," Money Laundering Watch, February 1, 2017

Co-author, "Is the United States Still a Tax Haven? The Government Acts on Tax Compliance and Money Laundering Risks," Journal of Tax Practice & Procedure, June-July 2016

Author, "Zukerman Case Raises Issues Regarding Crime Fraud Exception to Attorney Client Privilege," Procedurally Taxing, June 17, 2016

Criminal Tax, Money Laundering, and Bank Secrecy Act Litigation, Bloomberg BNA, November 2010, 2011, 2012, and 2014 supplements

Co-author, "Independent Contractor Misclassification Presents DOL/IRS Dual Threat," The Legal Intelligencer, September 10, 2015

Co-author, "What If the SEC’s Administrative Law Judges Have Been Unconstitutionally Appointed?" The Temple 10-Q, July 15, 2015

Co-author, "The Appointment of SEC Administrative Law Judges: Constitutional Questions and Consequences for Enforcement Actions," Bloomberg BNA's Securities Regulation & Law Report, June 19, 2015

Co-author, "Changes Coming to Anti-Money Laundering Compliance in New York," The Temple 10-Q, April 28, 2015

Co-author, "Domestic Search Warrants for Emails Stored Abroad: The Government Seeks to Expand its Ability to Collect Foreign Evidence," Federal Tax Crimes, April 25, 2015

Co-contributor, Comments by American Bar Association Section of Taxation to IRS Notice 2014-21 Regarding Tax Consequences of Transactions Involving Virtual Currency, March 24, 2015

Co-author, “Between the National Taxpayer Advocate and the Courts: Steering a Middle Course to Define ‘Willfulness’ in Civil Offshore Account Enforcement Cases,” Parts 1 and 2, Procedurally Taxing, March 24 and 25, 2015

Co-author, "Financial Crimes Enforcement Network Pursues New Customer Due Diligence Requirements for Banks’ Anti-Money Laundering Programs," PA Banker Magazine, December 2014

Co-author, "Evaders May Turn to Virtual Currency as Traditional Offshore Bank Secrecy Falters," Bloomberg BNA's White Collar Crime Report, April 18, 2014

Co-author, "In the Wake of Southern Union, Do Juries Need to Determine Criminal Restitution?," The Legal Intelligencer, December 27, 2012

Co-author, "New Amendments to Sentencing Guidelines for Securities Cases," The Legal Intelligencer, October 24, 2012

Co-author, "Protocol for Discovery of Electronic Data in Criminal Cases," The Legal Intelligencer, August 22, 2012

Co-author, "Navigating the Brave New World of Immigration Enforcement," The Legal Intelligencer, August 9, 2012

Co-author, “The 6th Amendment Flexes Its Muscles: Change May Be Coming to Corporations’ Fed. Sentencing,” The Legal Intelligencer, April 16, 2012

Co-author, "Government Continues the Hunt for Offshore Account Holders," The Legal Intelligencer, February 21, 2012

Co-author, "Courts Show Continued Deference to Broad Electronic Searches," The Legal Intelligencer, December 21, 2011

Co-author, "Obtaining Federal Grand Jury Materials: Lessons from the Stevens Decision," The Legal Intelligencer, May 9, 2011

"Government Ups Pressure in Fight Against Undisclosed Offshore Accounts," The Legal Intelligencer, January 31, 2011

Co-author, "Tax Enforcement," American Bar Association: The State of Criminal Justice 2010, April 2010

Co-author, "Protecting Patient Data -- New Rules, New Headaches, Risk Management: What Board Members and Senior Managers Need to Know," AHLA Business Law and Governance Practice Group Executive Summary, April 2010

"Watch for Potential Trouble if Clients Engage in Undisclosed Offshore Activities," Pennsylvania CPA Journal, Fall 2009

Book chapter regarding Best Practices by Health Care Organizations, "Corporate Governance Safeguards Against White Collar Infractions," Inside the Minds Series by Aspatore Books, July 2009

Co-author, "Parallel Proceedings and the Perils of the Adverse Inference," Journal of Health & Life Sciences Law, Vol. 2, No. 4, July 2009

Co-author, "Expanded False Claims Liability," ALM Business Crimes Bulletin, July 2009

"The Emergence of Money Laundering Allegations in Healthcare Cases: What Board Members and Managers Need to Know," AHLA Business Law and Governance Practice Group Executive Summary, May 2009

Co-Author, "Tax Enforcement," American Bar Association: The State of Criminal Justice 2009, May 2009

"Preventing Data Breaches: HIPAA Compliance and the Red Flag Rules," Compliance Today, April 2009

"Deferred Prosecution Agreement Struck With Swiss Bank UBS as Government Tightens Enforcement Net Around Foreign Accounts," ABA CJS White Collar Crime Committee Spring Newsletter, March 2009

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Credentials

Education

University of Michigan Law School (J.D., cum laude, 1994)
Executive Note Editor, University of Michigan Journal of Law Reform

University of Michigan (B.A. 1991, with highest distinction)
Phi Beta Kappa

Admissions

District of Columbia

Pennsylvania

U.S. District Court for the Eastern District of Pennsylvania

U.S. District Court for the Eastern District of Michigan

U.S. Tax Court

U.S. Court of Appeals for the Third Circuit

U.S. Court of Appeals for the Fourth Circuit