Ex-Speaker Hastert Indicted Over Secret Payments For ‘Past Misconduct’

Former U.S. House Speaker Dennis Hastert speaks to lawmakers on the Illinois House of Representatives floor at the state Capitol in Springfield on Wednesday, March 5, 2008. Hastert was being honored by Illinois lawma... Former U.S. House Speaker Dennis Hastert speaks to lawmakers on the Illinois House of Representatives floor at the state Capitol in Springfield on Wednesday, March 5, 2008. Hastert was being honored by Illinois lawmakers for his many years of legislative service. On Saturday March 8, 2008, voters in 14th Congressional District will vote in a special election to fill the seat of the retiring Hastert. Running to fill the seat are businessmen Democrat Bill Foster and Republican Jim Oberweis. (AP Photo/Seth Perlman) MORE LESS
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UPDATE: May 28, 2015, 8:01 PM EDT

CHICAGO (AP) — Former U.S. House Speaker Dennis Hastert agreed to pay $3.5 million in hush money to keep an unidentified person silent about “prior misconduct” by the Illinois Republican who was once third in line to the U.S. presidency, according to a federal grand jury indictment handed down on Thursday in Chicago.

The indictment, which does not describe the misconduct Hastert was allegedly trying to conceal, charges the 73-year-old with one count of evading bank regulations as he withdrew tens of thousands of dollars at a time to make the payments. He is also charged with one count of lying to the FBI about the reason for the unusual bank withdrawals.

Each count of the indictment carries a maximum penalty of 5 years in prison and a $250,000 fine.

The Associated Press left a phone message seeking comment with a person at Hastert’s Washington, D.C., office. It was not immediately returned. Hastert did not immediately return a message left on his cellphone seeking comment, or respond to an email.

Hastert withdrew a total of around $1.7 million in cash from various bank accounts from 2010 to 2014, and then provided it to the person identified in the indictment only as Individual A. Hastert allegedly agreed to pay the person $3.5 million, but never apparently paid that full amount.

The indictment notes Hastert was a high school teacher and coach from 1965 to 1981 in suburban Yorkville, about 50 miles west of Chicago. While the indictment says Individual A has been a resident of Yorkville and has known Hastert most of his life, it doesn’t describe their relationship.

The indictment says Hastert agreed to the payments after multiple meetings in 2010. It says that “during at least one of the meetings, Individual A and defendant discussed past misconduct by defendant against Individual A that had occurred years earlier” and Hastert agreed to pay Individual A $3.5 million “in order to compensate for and conceal his prior misconduct against Individual A,” the indictment says.

Around April 2012, bank officials began questioning Hastert about the large withdrawals, and starting in July of that year, Hastert reduced the amounts he withdrew at a time to less than $10,000 —apparently so the withdrawals would be less conspicuous, according to the indictment.

Among the focuses of the FBI investigation was whether Hastert, in the words of the indictment, was “the victim of a criminal extortion related to, among other matters, his prior positions in government.” The court document does not elaborate.

Investigators questioned Hastert on Dec. 8, 2014 and he lied about why he had been withdrawing so much money at a time. He told investigators he did it because he didn’t trust the banking system, the indictment alleges.

“Yeah … I kept the cash. That’s what I am doing,” it quotes Hastert as saying.

Hastert was a little known lawmaker from suburban Chicago when chosen to succeed conservative Newt Gingrich as speaker. Hastert was picked after favored Louisiana Congressman Bob Livingston resigned following his admission of several sexual affairs.

As speaker, Hastert pushed President George W. Bush’s legislative agenda, helping pass a massive tax cut and expanding Medicare prescription drug benefits.

He retired from Congress in 2007 after eight years as speaker, making him the longest-serving Republican House speaker.

Read the full indictment:

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Follow Michael Tarm on Twitter at http://twitter.com/mtarm

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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