I would image this might involve the nature of the payment. For instance, would “pay me $100k” be considered more or less serious than “pay me by voting NO on Proposition X”?
The person wasn’t necessarily doing anything illegal.
Recalling a Bill Cosby incident in the past the difference may just be having a lawyer involved.
I think it’s pretty clear that this was an illegal blackmail scheme. The structuring alone argues for that. Without evidence, I think the most likely possibility is that the authorities found the blackmailer while investigating the structuring, and the blackmailer agreed to cooperate against Hastert.
As for the OP, for $35 million it had better be either child molestation or murder. Since we’ve seen nothing at all about a dead girl, I’m betting on a live (underage) boy.
Is a main charge against Hastert just that he avoided the $10,000 cash reporting requirement by making multiple withdrawals?
I’m reminded of this story where a very small-time businesswoman who thought she was just doing her bank a favor had her entire savings confiscated for violation of that rule. :smack:
How much of Hastert’s $3.5 million is the IRS confiscating? Or is there a different law for ex-Speakers than for lowish-income people?
The only thing worth 3.5 million is gay underage sex. A live, out of wedlock kid popping up from a past affair is potentially embarrassing, but not by any means a job killer. Past gay sex with an adult man would be a bigger hit but in 2015 survivable for someone in private sector lobbying. A kid with an underage female would take it up a notch, but (IMO) it’s likely the kid of that union would have already made contact with Hastert for direct support way before now and probably gotten it without the need for blackmailing.
Lobbyist for conservative causes + gay sex with minor student = immediate job death and huge reputation stain. It does make you wonder what kind of hard evidence the blackmailer has that would cause him to cough up 3.5 million. If the accusation itself was enough it makes you think there might be more boy-sex skeletons in that closet once opened and that’s why he’s so desperate to keep this guy quiet.
Must admit to a quiet LOL on that one.
He had to have been incredibly desperate to take cash out of banks in $50K and $100K chunks. That’s a huge, huge red flag, and I’m sure he well knew it. I only wonder why he was able to get the total to $3.5MM before being questioned.
If we read he’s checked into Betty Ford, that might somewhat explain his impaired judgment.
But HOLY COW!! The whole thing is just nuts.
Maybe he was appearing in porn reels in the 40s and someone came up with a print.
ISTR several prominent people checking into Betty Ford having no actual substance abuse problems, but as part of a concerted effort to deflect blame for their jerk decisions and rebrand themselves as just another poor helpless victim of the drug scourge.
Hastert was making withdrawals, the businesswoman was making deposits.
I’m not a fan of civil forfeiture, but I’m sure you can agree that making deposits to avoid cash reporting laws probably results in more scrutiny of the balance in her bank account, as opposed to making withdrawals which would lend itself to more scrutiny of where the cash is going next.
As I understand it, the law says banks HAVE to report withdrawals of more than $10,000… but when there are frequent withdrawals just barely UNDER that amount, that raises red flags, too.
There are two types of reports which are frequently confused.
Currency transaction reports: filed for any hard currency transaction (deposit, withdrawal, transfer) of $10,000 or more. These are routine. There are plenty of businesses that deposit more than $10k in cash every day, for example. But they do establish a convenient paper trail if you’re investigating someone.
Suspicious activity reports: these are filed for anything that looks suspicious. FinCEN has guidelines about what constitutes suspicious activity but it’s largely at the discretion of the individual bank or employee. SARs can be filed for structuring (e.g., continuously withdrawing $9,900 to avoid CTRs) or things that look like money laundering, drug money transactions, etc.
The CTR form used to have a “suspicious activity” checkbox, but they are now totally separate procedures, owing to the fact that 99% of CTRs are not suspicious.
I knew, of course, that the “live boy” scenario was the most likely one. There were probably not many other things that would be worth millions to keep quiet. But I was really hoping this wouldn’t go that direction.
That doesn’t make a lot of sense, particularly over a seven-figure payout. Were that true, the person ought to be consulting with the FBI, esp. given what can happen where whomever/law enforcement discovers you’re misusing financial systems to pay off a blackmailer who is holding zippy in terms of info/evidence.
It has to be a minor, even a live boy over 18 is not worth $3.5 million to a guy not running for office. If he has $3.5 million he doesn’t have to worry about losing his job as a lobbyist.
If you click my link, you’ll see it’s much worse than that. Cash deposits or withdrawals of $10k or more are quite legal if reported. (I doubt if IRS computers raise a flag unless the total is much more than $10k). But two or three deposits less than $10k totalling more than $10k are illegal if unreported and IRS judges the split was done to avoid the report.
The woman in the news article was never charged with any crime, but her deposits totalling $33k were confiscated.
Since apparently the extortion didn’t work, can Hastert get a refund?
We don’t know yet the gender of the person in question nor do we know if it was a minor. It could have been a student who was 18 years old and it still would have been misconduct. That said, we can’t rule it out either.
I thought we did know that it was a boy. The LA Times says, “One of the officials, who would not speak publicly about the federal charges in Chicago, said “Individual A,” as the person is described in Thursday’s federal indictment, was a man and that the alleged misconduct was unrelated to Hastert’s tenure in Congress. The actions date to Hastert’s time as a Yorkville, Ill., high school wrestling coach and teacher, the official said.”
Oh, now he’s just being Cosbied. Leave Denny alone!