Thursday, October 29, 2015

Should Hastert Have Been Prosecuted?

   Former Speaker of the House Dennis Hastert yesterday pleaded guilty to money laundering in a Chicago federal court.  Hastert admitted that he structured banking transactions by taking out amounts under $10,000 to avoid reporting requirements in order to conceal the reason he was using the money, which according to the plea agreement was "to compensate and keep confidential his prior misconduct."  Although the facts were not revealed in court (but may later be in sentencing  proceedings), sources reported that he was paying "hush money" to a former student he allegedly molested over 30 years ago when he taught high school and coached wrestling. 

   It thus appears that Hastert was an extortion victim, coerced into paying a former student millions of dollars to avoid public disclosure of his misdeeds and the destruction of his reputation.   (I assume that the applicable Illinois statute of limitations had passed.) 

   I question whether Hastert should have been prosecuted.  The money laundering statutes, although clearly an intrusion into privacy, serve a generally laudable purpose in making it difficult for criminals to accumulate and spend ill-gotten gains.  Here, however,  Hastert (although he may have done serious wrongs many years ago) was not a criminal, but a victim.

   Congress has given the government broad power to prosecute violators of the money laundering laws well beyond those who derive funds from crime.    I do not know what drove the decision to prosecute Hastert.  Perhaps it was outrage over his long-ago sexual misconduct;  perhaps it was to put forth a case which would derive considerable publicity, something to which prosecutors are not averse;  perhaps it was just a rigid application of the law.   Although Hastert's banking conduct does clearly fall within the statutory bounds,  and there may be arguably legitimate reason to prosecute him, on balance I believe prosecutorial discretion should have been exercised and a case not brought.  I wonder whether it would have been brought against an ordinary Joe Smith.

http://lawprofessors.typepad.com/whitecollarcrime_blog/2015/10/should-hassert-have-been-prosecuted.html

Celebrities, Legal Ethics, Money Laundering, Prosecutions, Prosecutors | Permalink

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