Former U.S. House Speaker Hastert Pleads Guilty In Hush Money Case
CHICAGO (CBS) -- Former U.S. House Speaker Dennis Hastert has pleaded guilty to illegally structuring bank withdrawals in an effort to conceal hush money payments, under a plea agreement that includes a sentence recommendation of up to 6 months in prison.
Under the plea agreement, Hastert admitted agreeing to pay $3.5 million to an unnamed "Individual A" to hide past misconduct, and took out nearly $1 million from his bank accounts, and tried to hide the withdrawals from authorities.
He said he started by withdrawing cash $50,000 at a time, but when banking officials questioned him, he began taking out less than $10,000 at a time to avoid federal reporting requirements.
Prosecutors said, when FBI agents confronted Hastert about a suspicious series of withdrawals, he lied and told them he was keeping the money in a "safe place."
"I didn't want them to know how I intended to spend the money," Hastert told U.S. District Judge Thomas Durkin.
Hastert paid Individual A $100,000 in cash every three months at one point. The former speaker said he knew what he was doing was wrong.
Hastert pleaded guilty to one count of knowingly structuring currency transactions to evade reporting requirements. Such requirements are in place to detect money laundering. A count of lying to the FBI was dismissed.
The plea agreement did not provide any details on the past misconduct behind the hush money payments, but sources have said Hastert was trying to hide allegations he sexually abused a student decades ago, while he was a teacher and wrestling coach at Yorkville High School.
Before pleading guilty, Hastert told the judge he's in good health, "considering I'm 73 years old." The former speaker said he's been working as a consultant.
Prosecutors and defense attorneys agreed on a sentencing range of up to 6 months in prison, but the judge noted the final decision on Hastert's sentence is up to him. Sentencing will be held on Feb. 29. The maximum sentence for the count to which Hastert pleaded guilty carries a maximum sentence of 5 years in prison.
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"It's an unusual plea agreement on a lot of levels," said white collar criminal defense attorney Patrick Cotter, a former federal prosecutor.
Cotter said the fact prosecutors recommend, at the low end, no prison time for Hastert is not something you see very often; as is the fact Hastert admitted to lying to federal agents, but that count against him is being dismissed.
While the plea deal means the details of Hastert's past misconduct will remain secret, Cotter dismissed the suggestion Hastert was successful in skirting banking regulations.
"It's hard to say the structuring paid off when he's standing in a federal court, pleading guilty to a felony," he said. "I don't think that was the plan."
CBS 2 Legal Expert Irv Miller says it is possible that the details of the misconduct could come out because, "Because the plea agreement itself says the government will advise, if they want, the judge of all the underlying factors involved in this particular case, so the door is open."
Hastert left the courthouse without speaking to reporters about the plea deal, and the U.S. Attorney's office also said little about the plea deal.
"Now that Mr. Hastert has pled guilty, and the Court has accepted his guilty plea, the case will proceed to sentencing. As part of the sentencing process in this case, as in all cases, we will provide the Court with relevant information about the defendant's background and the charged offenses, and the defendant will have an opportunity to do the same, so that the Court can impose an appropriate sentence taking into account all relevant factors in the case," prosecutors said.
At Sherry's Cafe in Plano, where Hastert lives, there's still disbelief that a powerful local figure has fallen so far.
"My only thought is, I feel sad for Denny and for his family," said Les Banks.
Feelings shared by Jill Smith, but she also wonders, "Why did money have to change hands? Something happened somewhere. I'm certain of that."
