- Associated Press - Sunday, December 14, 2014

CEDAR RAPIDS, Iowa (AP) - Federal prosecutors are dropping an effort to seize nearly $33,000 from an Iowa restaurant owner’s bank account.

The New York Times reports (https://nyti.ms/13nLfgV ) the IRS became suspicious of Carole Hinders because of a pattern of cash deposits of less than $10,000.

Hinders said the cash came from her Mexican restaurant, Mrs. Lady’s, in Arnold’s Park, Iowa, which doesn’t accept credit cards.

Hinders wasn’t accused of a crime, but federal law makes it illegal to deposit less than $10,000 if it is part of an attempt to circumvent federal reporting requirements. So officials seized $32,820.56 from Hinders’ account last year.

The law pertaining to cash deposits is designed to catch drug dealers, terrorists and money launderers.

“After her deposition, at which it became overwhelmingly clear that Carole was an innocent and hardworking restaurateur, the assistant United States attorney on the case told us that he informed the I.R.S. that they should not go forward with the case,” lawyer Larry Salzman told the New York Times. He works at the nonprofit Institute for Justice firm representing Hinders.

Assistant U.S. Attorney Matthew Cole said in a motion filed Saturday the case should be dropped to conserve judicial resources even though he had evidence Hinders intentionally skirted bank reporting rules.

Cole said Hinders told investigators she had broken up her deposits to keep them under $10,000 because her mom recommended she do so as “a convenience to the bank.”

Cole said in his motion that he reserves the right to refile the case.

Copyright © 2019 The Washington Times, LLC.

The Washington Times Comment Policy

The Washington Times welcomes your comments on Spot.im, our third-party provider. Please read our Comment Policy before commenting.

 

Click to Read More and View Comments

Click to Hide