Hastert enters not guilty plea during 1st court appearance

Jun 9, 2015, 11:36 PM
Former House Speaker Dennis Hastert arrives at the federal courthouse, Tuesday, June 9, 2015, in Ch...
Former House Speaker Dennis Hastert arrives at the federal courthouse, Tuesday, June 9, 2015, in Chicago for his arraignment on federal charges that he broke federal banking laws and lied about the money when questioned by the FBI. The indictment two weeks ago alleged Hastert agreed to pay $3.5 million to someone from his days as a high school teacher not to reveal a secret about past misconduct. (AP Photo/Paul Beaty)
(AP Photo/Paul Beaty)

CHICAGO (AP) — Former U.S. House Speaker Dennis Hastert has pleaded not guilty to charges that he violated banking rules and lied to the FBI about promising to pay $3.5 million in hush money to conceal misconduct from his days as a high school teacher.

On Tuesday, during his first court appearance since he was indicted, the 73-year-old stood motionless, his hands folded and eyes downcast at the floor, as his attorney entered the plea on his behalf. When the judge asked if he understood he had to submit a DNA sample and 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.”

Hastert has not spoken publicly about the accusations that emerged two weeks ago and quickly raised questions about possible sexual abuse by the once-powerful Republican legislator from Illinois. Neither he nor his attorneys commented after the hearing.

The politician-turned-lobbyist is accused of evading federal banking laws by withdrawing hundreds of thousands of dollars in smaller amounts and lying about the money when questioned.

At the start of Tuesday’s hearing, Hastert reached into a coat pocket and pulled out his passport, handing it to his attorney, who turned it over to a court official. Surrendering foreign travel documents is a standard condition of release.

The former congressman was also ordered to have any firearms removed from his property by June 23 and was forbidden from having contact with victims or witnesses in the case.

Prosecutors did not shed any more light Tuesday on the secret Hastert allegedly sought to conceal by paying the person the indictment refers to as “Individual A.”

A person familiar with the allegations told The Associated Press that the payments were intended to conceal claims of sexual misconduct from decades ago. The person spoke to the AP on the condition of anonymity because the investigation is ongoing.

Judge Thomas M. Durkin spent most of the 20-minute hearing explaining how he believed he had no conflict of interest in the matter but then giving attorneys on both sides 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.”

To the best of his knowledge, he said, he never met Dennis Hastert.

“I have no doubt I can be impartial in this matter,” the judge said.

After the judge issue is resolved, Durkin or another judge brought in to replace him will lay out a timetable for prosecutors to share evidence with the defense. Hastert could seek a plea deal or take his case to a jury. Any trial would probably be many months away. If convicted, Hastert faces a maximum five-year prison term on each of the two counts.

Appearing much thinner than in his days as speaker, Hastert walked into court slowly, slightly bent over. He appeared nervous as he sat at a defense table waiting for the hearing to begin, rubbing his chin, biting his lip and occasionally scanning the courtroom benches packed with reporters. At one point, a defense attorney reached over and patted him on the shoulder.

His lead attorney, Thomas C. Green, is based in Washington and has represented clients in the Watergate, Iran-Contra and Whitewater cases. Chicago attorney John Gallo is also on Hastert’s defense team. Steven Block is the lead U.S. prosecutor.

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.

Hastert, who is married with two sons, follows a well-trodden path of other Illinois politicians who have walked through the revolving doors at Chicago’s federal courthouse. Several recent governors, Chicago aldermen and other public figures have entered pleas in the same building. Among the most recent were former Gov. Rod Blagojevich, a Democrat, and former Gov. George Ryan, a Republican. Both men were convicted on corruption charges.

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Associated Press Writer Eric Tucker in Washington, D.C., contributed to this report.

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

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

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Hastert enters not guilty plea during 1st court appearance