"The Coach", former House Speaker turned high-priced lobbyist, is the target of a mysterious indictment. The Times has some details (and attaches the indictment) and the WaPo has some speculation that is informative for its omissions. [BREAKING UPDATES below]
Background from the Times:
CHICAGO — J. Dennis Hastert, the former speaker of the House of Representatives, has been charged with lying to the F.B.I. and making cash withdrawals from banks in a way that was designed to hide that he was paying $3.5 million to someone for his “misconduct” from years ago, a federal indictment released on Thursday said.
Mr. Hastert, 73, the longest-serving Republican speaker, had worked as a lobbyist since leaving office. The indictment, announced by the United States attorney for the Northern District of Illinois, said Mr. Hastert, who was once a high school teacher and wrestling coach in Yorkville, Ill., had so far paid $1.7 million to the person, who had lived in Yorkville and had known Mr. Hastert for most of his or her life. Mr. Hastert worked in Yorkville from 1965 to 1981.
In 2010, during meetings between Mr. Hastert and the unnamed individual, the two discussed “past misconduct” by Mr. Hastert against the person, according to the indictment.
In those meetings and in later discussions, Mr. Hastert agreed to provide money to the person “in order to compensate for and conceal his prior misconduct,” the indictment said. It said he was structuring the cash withdrawals in increments designed to avoid bank reporting requirements. The indictment does not provide details of the misconduct.
So we don't even know if the misconduct was criminal. Let me toss out two possibilities. First, maybe this was an "I Know What We Did Last Summer" scenario, where Hastert and a high school buddy did something dreadful, leaving an unsolved crime in their dark past. Think "Kennedyesque DUI, with a hit-and-run victim". The obvious weakness of this scenario - where are the other indictments and the rest of the investigation? Does the other perpetrator get a pass? If there is a statute of limitations issue on the underlying act, isn't there a prosecutor clever enough to figure out how to indict a multi-year conspiracy to conceal that act?
Or, if there is an ongoing investigation into the other perp or perps and Hastert has become a cooperating witness, why was this indictment unsealed now? As we saw just yesterday with the FIFA indictments, various cooperating offenders had their pleas kept sealed for years.
Which takes me to the obvious scenario - Hastert is paying child support to the mother (or child) of an out-of-wedlock relationship from his youth. A possible clue - the indictment is quoted as saying, my emphasis, that Hastert was paying in order to compensate for and conceal his prior misconduct...”. And why is this coming out now? Well, for years Hastert was a lowly-paid teacher, and then a (relatively) low-paid member of the House. But now? Back to the Times:
Since leaving office, Mr. Hastert has been a prominent lobbyist in Washington. He is co-leader of the Public Policy & Political Law Practice at the Washington law firm of Dickstein Shapiro, according to the firm’s website.
And he moonlights as the firm's bagman, paying off officials and staffers that the lobbyists are bribing? Please. Hastert is finally cashing in on his Washington connections, as is his acquaintance from his youth. And for all anyone knows, Hastert may have been paying this person a pittance out of his own somewhat larger pittance for years without attracting attention; this only caught the Feds attention when Hastert's paycheck spiked:
According to the federal indictment made public on Thursday, Mr. Hastert gave money to the unnamed person for four years, starting in 2010.
At first, Mr. Hastert provided $50,000 in cash from several bank accounts to the person every six weeks, for a total of 15 such exchanges, the indictment said.
Banks are required to report cash withdrawals of more than $10,000, and in April 2012, bank officials questioned Mr. Hastert about sizable withdrawals from his accounts.
That July, Mr. Hastert began making smaller withdrawals, of less than $10,000, and he continued providing them to the person at prearranged meeting places and times, the indictment said.
Later, the arrangements changed so that Mr. Hastert was providing $100,000 every three months, the indictment said.
Is that a lot of money to Hastert? I don't know. But he is no longer an elected official, so a conventional sex scandal wouldn't cost him his office. That suggests he might be paying out of a sense of obligation, rather than simply a desire to conceal this.
In any case, Hastert gets huge points off for this:
By 2013, the Federal Bureau of Investigation and the Internal Revenue Service began investigating the withdrawals, focusing, federal authorities said, on whether cash was being taken out in a way that was intended to evade bank reporting requirements.
Last Dec. 8, Mr. Hastert was interviewed by federal agents. He told the agents that he was not paying anyone with the money, but was keeping the withdrawals for himself because he felt unsafe with the banking system.
“Yeah,” Mr. Hastert told the agents, according to the indictment. “I kept the cash. That’s what I’m doing.”
Don't lie to the FBI. My goodness, Hastert works at a law firm - get a damn lawyer. That way you don't create a crime while the Feds are investigating a non-crime. When Hastert makes his next court appearance, I want to see his attorney in the appropriate t-shirt.
So, my current guess - Hastert is guilty of trying to do the right thing by supporting an illicit child and then was a damn idiot who lied to the FBI about it. The rest is politicized, Chicagoland, Obamaland BS.
WHILE ON THE SUBJECT OF STUPID:
Possibly the dumbest passage in the NY Times is this:
This is not the first time a political figure has attracted attention through banking practices. Eliot Spitzer, then the governor of New York, came to the attention of federal investigators after bank officials noticed that he was moving around thousands of dollars in a manner they thought was intended to conceal the purpose and source of the money. As it turned out, Mr. Spitzer was using the money to pay for prostitutes. He resigned when the payments became public; he was not charged with a crime.
Hmm, Spitzer was a public official and former State Attorney General engaging in criminal activity he had prosecuted and denounced. By comparison, Hastert is... what? The Feds know but won't say. The Times doesn't know but is taking this indictment at face value.
The WaPo ruminates on blackmail, never notes the possible that Hastert is being a dutiful dad (maybe Hastert can come clean in a Father's Day interview with George Stephanopoulos, friend to adulterers?) and includes this absurdity:
Blackmail couldn’t really exist until the rise of capitalism and modern social mores. A king was always a king, whether or not he behaved badly, but a businessman or politician who lost his reputation could face ruin — as Josh Duggar is finding out.
“It was a crime that only emerged in the 19th century,” Angus McLaren, a professor emeritus of history at the University of Victoria and the author of “Sexual Blackmail: A Modern History,” told the New York Times in 2009 after David Letterman was blackmailed for his extramarital affairs. “If one was an aristocrat, say, you couldn’t lose your position because of trifling with the housemaids.”
Really? Wait'll they get a chance to watch the blackmailing in "Game of Thrones", which has a medieval feel to it. The Three Musketeers was set in the 17th century but blackmail of the Queen was a key plot point. And it was not just her position but her head that was at risk if the King discovered her infidelity. Or for Shakespeareans, "Richard III" is full of regal blackmail.
AND WHERE IS THE IRS IN THIS? How did Hastert give away that much money without getting caught in the gift tax/estate tax maze? Would any IRS action occur separately, or would it be part of this indictment? Over to the legal eagles...
BREAKING UPDATES: From NBC News:
Former House Speaker Dennis Hastert paid a man to conceal a sexual relationship they had while the man was a student at the high school where Hastert taught, a federal law enforcement official told NBC News on Friday.
The official spoke on condition of anonymity. Tribune newspapers reported earlier in the day that two unnamed federal officials said that Hastert paid a man from his past to conceal sexual misconduct.
Just to nitpick, those stories don't necessarily support each other - paying "a man from his past to conceal sexual misconduct" might mean the man in question was his lovechild. The ChiTrib has an overly optimistic business model but the LA Times has seemingly similar coverage.
Well. Cannonfire is good on the gay angle.
And do let me add, as my ship goes down - as Isaac Asimov explained in "The Gods Themselves", in nature "one" is rarely the right answer. If this was an abused student, why aren't there others, as with Jerry Sandusky of Penn State? Is the FBI really just moving on without resolving that? Or are they hoping the publicity will bring forward more victims? Oh, brother.
From the NY Times:
The man – who was not identified in court papers — told the F.B.I. that he had been inappropriately touched by Mr. Hastert when Mr. Hastert was a high school teacher and wrestling coach, the two people said on Friday. The people briefed on the investigation spoke on the condition of anonymity because they did not want to be identified discussing a federal investigation.
The F.B.I. declined to comment.
It was not clear when the alleged behavior occurred. But according to court documents, Mr. Hastert was a high school teacher and coach in Yorkville, Ill., from 1965 to 1981. The F.B.I. was not able to substantiate the allegations beyond the man’s statements.
Well, Hastert's payments seem to be substantiation. Although maybe they invented this as a cover for Hastert's real offense, because they figured that would bother people even more than pedophilia? I don't want to know...
FROM BUZZFEED VIA MATT DRUDGE: Why not?
Source: Investigators considered including a second alleged victim in the Hastert indictment, but ultimately chose not to do so.
A source familiar with the investigation told BuzzFeed News that U.S. Attorney Zachary Fardon considered but did not pursue additional charges against former Speaker Dennis Hastert, which would have included a reference to an Individual B, one of potentially several alleged victims of “prior misdeeds.”
According to this source, no additional charges are expected to be filed against Hastert at this point.
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