The details on the indictment of former U.S. House Speaker Dennis Hastert, 73, have remained hazy with some notable gaps in the underlying criminal enterprise alleged in the complaint. The theory is that Hastert was paying millions to a blackmailer and tried to hide the payment through “structuring” of withdrawing less than $10,000 to avoid reporting to the federal government. What is interesting however is that the underlying alleged blackmailer has not been charged. There is also the question of the subject of the earlier “misconduct” and whether it could be charged. Some offenses like child molestation can be charged many years after the fact. Hastert was indicted on two counts for charged with lying to the F.B.I. and the structuring of withdrawals, both carrying a maximum penalty of five years in prison and a $250,000 fine.
Hastert is accused of structuring the withdrawal of $925,000 in cash and then lying to the FBI about the withdrawals. The FBI says that Hastert met with an unnamed individual in 2010 and discussed “prior misconduct.” It must have been pretty serious “misconduct” if the parties agreed on the payment of $3.5 million “in order to compensate for and conceal his prior misconduct against Individual A.”
From 2010 to 2014, Hastert withdrew a total of approximately $1.7 million in cash from various bank accounts and provided it to this unnamed individual. When the bank raised questions in 2012 about the large withdrawals, Hastert reportedly reduced the withdrawals through structuring. In April 2014, Hastert allegedly lied about the money and said he did not trust banks and was keeping the case — when he was giving the money to this individual.
Hastert has been working with the lobbying and law firm of Dickstein Shapiro LLC.
It is curious to have so little information on the underlying facts and “misconduct” or the status of the person receiving such money. Perhaps we will learn more in the coming days about the nature of the misconduct and why the individual was not charged if this were a case of blackmail.
Source: New York Times
https://twitter.com/MSignorile/status/604392485465374721
Who is Scott Palmer?
http://www.huffingtonpost.com/lawrence-odonnell/who-is-scott-palmer_b_31171.html
His live-in chief of staff in 2006… that’s who.
And when Dennis’ wife came to visit, he put her up in a hotel.
Nice family values…
This is what a hypocrite does…
Annie,
We’re witnessing the failed Conservative movement in action…
Dennis ‘touchy feely’ Hastert did what as high school wrestling coach?
I wonder what his take on the Duggars is…
@jim22
wonderer – “Impeding an investigation by lying to the FBI is also a fairly common charge, and if people suspected of wrongdoing were free to lie and delay/impede investigations, nothing would ever get investigated.”
So you believe in self incrimination. Doesn’t the 5th amendment having something to say about this?
No…I don’t believe in self-incrimination, either as coerced or as an unwise practice. I’m certainly no expert on the 5th, but declining to respond or remaining silent are much different things than responding untruthfully or attempting to mislead law enforcement authorities in their lawful investigation.
“But Hastert withdrew his own money to pay off gay sex!!”
The question is this, did Hastert pay hush money to his underage victim of sexual abuse? This Person A was supposedly his student.
http://www.huffingtonpost.com/2015/05/28/dennis-hastert-patriot-act_n_7465780.html
“Patriot Act that Dennis Hastert passed led to his indictment.
The indictment suggests that law enforcement officials relied on the Patriot Act’s expansion of bank reporting requirements to snare Hastert. As the IRS notes, “the USA PATRIOT Act of 2001 increased the scope” of cash reporting laws “to help trace funds used for terrorism.” The Bank Secrecy Act of 1970, which was amended by the Patriot Act, had already required banks to report suspicious transactions.
If the Patriot Act is ultimately Hastert’s undoing, it will not be the first time the law has been used to prosecute a politician’s criminal activity. In 2008, Newsweek reported that the Patriot Act’s expanded banking disclosure requirements put the FBI on the trail of former New York Gov. Elliot Spitzer (D). Investigators identified payments made in connection with Spitzer’s solicitation of prostitutes.”
Bill Clinton went to a private island owned by a pedophile hosting underage sex workers.
Bill Clinton took bribes for Hillary.
But Hastert withdrew his own money to pay off gay sex!!
And hey, I thought Democrats were all in favor of that NAMBLA stuff. What gives?
Trooper’s right.
This is typical Illinois dirty politics.
And, typically, Inga plays cheerleader.
The FBI has time to investigate FIFA and legal ‘structured’ cash withdrawals by a Rethuglican.
The FBI/DOJ can’t find the time to investigate Hilary’s emails and personal email server, Benghazi, Clinton, Inc bribes, Fast & Furious, Lois Lerner, etc., etc.
This is a vital story that cuts to the core of the problems facing our society.
Meanwhile there 38 murders during the Merry Month of May in Baltimore Maryland. A young mother and her seven year old son were shot in the head. This does not merit wall to wall saturation coverage in the news media. No special editions. No cable news spectaculars.
The police have taken a giant step back. Arrests are down 50% This is what you have called for these past few months. Letting the little things go. Don’t provoke the criminals and the mobs who gather to protect them. No police would dare to stop a skell to find out if they have a weapon because they would be brought up on charges. They would be indicted and charged with making an “illegal arrest” by a district attorney who curries favor with the mob. With a media that caters to the criminal element. With a mayor who wants to make sure that there is space for those who want to destroy.
Denny Hastert spending his own money is the issue. Keep your eye on the ball.
Philly, it’s the Family Values Party!
It appears now (as reported by NPR and others), that we have another Jerry Sandusky situation from the days when Hastert was a wrestling coach.
Was he accused of porking a pig when in college at Wheaton? If not, then why did they nick name him “Pig Porker”?
“Why so long before this was filed?”
See above.
It was politically useful.
The news today?
1. Economy tanks (again)
2. SEX SCANDAL INVOLVING A REPUBLICAN
Did I read it right, that the Grand Jury convened in February of 2014? Why so long before this was filed?
http://www.nytimes.com/interactive/2015/05/28/us/document-indictment-of-john-dennis-hastert.html
Paul
No argument from me on that point. Go whine to Congress and the Supreme Court (which held that lying by LEOs is ok) about that.
I’ve handled lots of civil and criminal tax disputes over many years, including “structuring” cases. My thoughts are as follows.
First, the crime of structuring withdrawals or deposits of cash in an effort to avoid the filing CTRs is very real. You can be convicted even if you don’t know it is a crime to do this. You only need to know that there was a requirement to file a CTR and take steps to structure transactions to avoid the reporting requirement. That is because Congress changed the law after the Supreme Court held that you could not be convicted of structuring unless you knew that what you were doing was illegal. Old Denny Boy may have even voted in favor of that change in the law, which would be most ironic.
Second, you can be convicted of lying to any federal LEO even though you are not under oath. 18 USC section 1001.
Third, the payments by Denny Boy were not gifts under the tax laws. Gifts are made out of disinterested generosity. These payments were most certainly not made out of disinterested generosity. The payments were taxable income to the recipient but were not deductible by Hastert. No gift tax return was required to be filed.
I have my own suspicions about the actual back story leading up to the indictment, suspicions which no one here has articulated. I am going to bite my tongue, however, because I’ve learned over the years that the truth in these situations is often far stranger than I could ever imagine. So I will reserve judgment on whether the indictment of Hastert is a proper use or an abuse of this law.
I’ve seen this law used properly and have seen this law abused.
Don de Drain – I find it interesting that the FBI can lie to you, but you cannot lie to them. There seems to be a reciprocity problem here.
Don de Drain wrote: “I have my own suspicions about the actual back story leading up to the indictment, suspicions which no one here has articulated.”
I would love to hear your speculation. I wondered if maybe there is a gambling problem at the root of this.
The real questions is. Will we Repeal this act?