Ted Strickland owns a business called Strickland Propane, which sells propane and propane accessories. Ted has inherited a Swiss bank account from his recently deceased mother. Ted suspects that his mother never paid taxes on the gains in the account, and so would like to move it to the United States "nice and secret like." Accordingly, he sets up new business account at Strickland Propane for Moms Books and Cookery and creates false invoices for nonexistent propane orders, which he pays through wire transfers drawn on the Swiss account.

Question 1. Has Ted violated federal laws against money laundering? Why or why not?

Question 2. Ted is able to drain the Swiss Bank account within three months of inheriting it using the scheme described above. Must he file an FBAR form? What additional information might you require?