Ex-Speaker Hastert pleads not guilty in hush money case
CHICAGO — A haggard Dennis Hastert appeared in court Tuesday for the first time since he was indicted, pleading not guilty to charges that he violated banking rules and lied to the FBI in a scheme to pay $3.5 million in hush money to conceal misconduct from his days as a high school teacher.
As his attorney entered the plea on his behalf, the 73-year-old former House speaker stood motionless, his hands folded and eyes downcast at the floor. When the judge asked if he understood he had to submit a DNA sample and that he could go to jail if he violated any conditions of his release, the man who was once second in the line of succession to the presidency, answered quietly, “Yes, sir.”
The politician-turnedlobbyist was before Judge Thomas Durkin on charges that he evaded federal banking laws by withdrawing hundreds of thousands of dollars in amounts less than $10,000 and lying about the money when questioned.
The judge spent most of the 20-minute hearing explaining how he believed he had no conflict of interest in the matter but then giving prosecutors and defense attorneys until Thursday to say if they want him to stay on the case.
The issue came up because Federal Election Commission records indicate he donated $500 to the “Hastert for Congress” campaign in 2002 and $1,000 in 2004. Durkin was an attorney at a Chicago law firm at the time of the contributions.
Durkin cited those donations and that he knew Hastert’s son Ethan. The two worked together in private practice before Durkin became a judge. But, the judge said, he does not consider the younger Hastert “a personal friend.”
“I have no doubt I can be impartial in this matter,” the judge said.
Appearing much thinner than in his days as speaker, Hastert walked into court slowly. He appeared nerv- ous as he sat at a defense table waiting for the hearing to begin, rubbing his chin, biting his lip and occasionally scanning the reporters’ rows.
The indictment made public May 28 says Hastert agreed in 2010 to pay Individual A $3.5 million to “compensate for and conceal (Hastert’s) prior misconduct” against that person.
It says he paid $1.7 million before federal agents began scrutinizing the transactions.
He allegedly started by withdrawing $50,000 at a time and changed course when automatic bank transaction reports flagged those withdrawals. The indictment says Hastert then began taking cash out in increments of less than $10,000 to skirt reporting rules, which are primarily meant to thwart money laundering by underworld figures.
It’s not illegal to withdraw large amounts in cash. But it’s against the law to structure the withdrawals with the intent of dodging reporting requirements.