CHICAGO — A possible plea deal is being discussed for former U.S. House Speaker Dennis Hastert, who is accused of skirting federal banking laws in an attempt to pay someone $3.5 million to hide claims of past misconduct, prosecutors and defense attorneys told a federal judge Monday.
The disclosure came during a pre-trial hearing in U.S. District Court in Chicago, though no details about a possible deal or its terms were released. Hastert didn’t attend the hearing.
An indictment handed down in May alleges that the Republican agreed to pay the money to a person identified only as “Individual A,” but offers no details about the alleged misconduct. The Associated Press and other media, citing anonymous sources, have reported the payments were intended to conceal claims of sexual misconduct decades ago.
“We are seeing if we can resolve this case generally,” Hastert’s attorney, John Gallo, said when U.S. District Judge Thomas M. Durkin raised concerns about repeated requests for delays in the case.
Gallo characterized the talks as “linear and productive.” Prosecutor Steven Block confirmed the discussions, saying: “This is not a situation where both sides are sitting on their hands.”
Authorities allege that Hastert structured cash withdrawals in increments of just under $10,000 in an attempt to avoid reporting rules, and when questioned by the FBI, said he was taking the money out because he didn’t trust banks.
The indictment also notes that Hastert was a teacher and coached high school wrestling until 1981 in Yorkville, which is just west of Chicago. Hastert still lives near the town.
Hastert has pleaded not guilty to violating banking laws and lying to the FBI. He remains free on bond.
Durkin scheduled a status hearing for Oct. 15, to get updates on the talks. The judge indicated that if a plea deal isn’t finalized by then, he will set a trial date for April or March.
Plea deals are common in federal cases, where defendants seek lesser sentences in exchange for guilty pleas. In Hastert’s case, the negotiations also could keep details of the allegations secret, including the identity of “Individual A.”
Prosecutors and defense attorneys have taken steps to keep that information confidential.
Both sides maintained that strategy Monday. Gallo said his defense team drafted a motion to dismiss the indictment and gave a draft to prosecutors, an uncommon move that neither side explained.
During a hearing in July, Hastert’s lead attorney, Thomas C. Green, noted that the media reports about Hastert’s alleged past sexual misconduct were the “800-pound gorilla” in the case. Green said he wasn’t sure how or whether to address those allegations as he prepared for trial.
Durkin, during the same hearing, warned that he might be obligated to reveal potentially sensitive details in his rulings if the defense raised the issues in any motion to dismiss the indictment.
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