Former Speaker Dennis Hastert Indicted Over These Mysterious Payments

A mysterious “past misconduct” forces one powerful politician down a dark road to keep his secret hidden with an illegal cover up costing millions. It sounds like the kind of synopsis you’d find on the back of a thrilling conspiracy novel, but it actually summarizes the contents of a federal grand jury’s seven page indictment served to former Republican House Speaker Dennis Hastert on Thursday .

According to the Washington Post, Hastert, 73, is charged with scheming to conceal $950,000 in withdrawals from various accounts, which violates federal banking laws requiring the disclosure of any large cash transactions. These withdrawals were part of the reported $1.7 million in cash paid by Hastert over five years to an undisclosed person referred to only as “Individual A,” whom he’d wronged in the past. Sources are now claiming that he’d committed sexual misconduct against the individual.

In 2010, Hastert met with Individual A and was confronted with his “past misconduct,” which he allegedly agreed to pay $3.5 million in order to conceal. At one point he was reportedly paying $100,000 every three months to this person, according to the indictment.

The indictment did made a point to mention Hastert’s 26 year stint as a high school teacher and coach in Yorkville, Illinois, that this individual has been a resident of Yorkville, and has known Hastert for most of their life.

Hastert was a well regarded politician and tobacco and energy lobbyist who is best known for being the longest running Republican speaker in the history of the U.S. House, but in 2013 the FBI and the Internal Revenue Service began investigating him for “possible structuring of currency transactions to avoid the reporting requirements.”

According to the Post,

In addition to the banking charges, Hastert faces a count for making ‘false, fictitious and fraudulent statements’ to federal investigators during an interview last December in which he was questioned about the many cash withdrawals for less than $10,000, just under the amounts that would have triggered disclosure requirements.

When asked about these withdrawals Hastert told investigators he made them “because he did not feel safe with the banking system,” saying,

Yeah…I kept the cash. That’s what I’m doing.

We’ll have to wait for the arraignment to see how he will plea, but the U.S. Attorney Office in Chicago said that if convicted  on both counts he could face a maximum penalty of 10 years in prison and a $500,000 fine.

Alexis Evans

Alexis Evans is an Assistant Editor at Law Street and a Buckeye State native. She has a Bachelor’s Degree in Journalism and a minor in Business from Ohio University. Contact Alexis at aevans@LawStreetMedia.com.