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Hastert Enters Not Guilty Plea During 1st Court Appearance

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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)

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)

MICHAEL TARM, Associated Press
SARA BURNETT, Associated Press

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 This material may not be published, broadcast, rewritten or redistributed.

Business

OP-ED: Proposition 44 Would Put a Price on Trust

The danger in Proposition 44 is not only its 90 percent figure. It is that the meaning of “qualifying” spending will be worked out later. A clinic preparing a budget today may not know whether a navigator, health educator, transportation program, outreach worker, technology upgrade, or other patient-support service will be counted the way it expects. Yet the financial consequence of getting it wrong could be immediate.

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Oakland’s public conversation about health care must begin with a simple truth: a doctor’s appointment is not the same thing as access to care.

For a mother juggling work and child care, access may mean a text-message reminder, a bus pass, an evening appointment, or someone who can explain what Medi-Cal covers. For an older patient managing diabetes, it may mean help scheduling a specialist visit and understanding new medications. For a family that has been dismissed or misunderstood in medical settings, access may begin with meeting a community health worker who knows the neighborhood, speaks their language, and treats their concerns with respect.

Community health clinics make that kind of care possible. They are part medical provider, part navigator, part educator, and part trusted local institution. Proposition 44 threatens to narrow the definition of what counts as patient care in a way that could undermine the very supports that allow patients to receive it.

The statewide measure would require covered nonprofit community clinics to spend at least 90 percent of their annual revenue on health care or qualifying program services. The ballot measure directs the Attorney General to establish more detailed guidance on what expenses qualify. Clinics that do not meet the threshold could face penalties for the difference. The Legislative Analyst’s Office reports that affected clinics currently spend an average of about 80 percent of revenue on health care services.

A percentage may look like a clean measure of accountability. But health care is not cleanly divided between what happens inside an examination room and everything that enables a patient to enter one.

Consider the work that happens before and after a visit. Clinic staff maintain confidential patient records. They follow up after missed appointments. They keep information systems secure. They recruit and train employees in an expensive and competitive health care labor market. They coordinate referrals, process claims, purchase supplies, maintain buildings, and make certain that patients are not lost somewhere between diagnosis and treatment.

Oakland families should not be asked to accept the fiction that these functions are unrelated to care.

The danger in Proposition 44 is not only its 90 percent figure. It is that the meaning of “qualifying” spending will be worked out later. A clinic preparing a budget today may not know whether a navigator, health educator, transportation program, outreach worker, technology upgrade, or other patient-support service will be counted the way it expects. Yet the financial consequence of getting it wrong could be immediate.

The Legislative Analyst’s Office says clinics falling short of the requirement could be required to pay the shortfall amount to the state and could seek to recover the money only if they show compliance within five years. The same analysis estimates state enforcement costs in the low tens of millions of dollars annually, supported by fees.

That is a troubling arrangement for organizations that are expected to provide care to people with the fewest alternatives.

Oakland has learned that trust is not built through slogans. It is built when a patient is listened to, when a parent can secure an appointment for a child, when a clinic returns a call, and when a person receives help without being shamed for their income, insurance, language, immigration history, or prior experience with the system.

For Black residents in particular, trustworthy care is not an abstract goal. Persistent inequities in health outcomes and patient treatment are real. Community-centered clinics can help bridge the gap with culturally responsive staff, patient navigators, behavioral-health programs, and partnerships that understand the conditions shaping health outside the clinic door.

Proposition 44 could pressure providers to treat those supports as expendable because they do not fit neatly into a state-enforced formula. That would be a mistake.

Accountability is necessary. Clinics that receive public resources should be transparent, well governed, and focused on their mission. But good oversight asks whether patients are being served well, whether money is managed responsibly, and whether communities can obtain needed care. It should not rely on a rigid ratio that may punish clinics for doing the hard work of reaching people who need more than a brief medical encounter.

A broad coalition of providers and community organizations opposes Proposition 44, including the California Primary Care Association, the California Medical Association, the California Hospital Association, Planned Parenthood Affiliates of California, and the California Teachers Association.

Oakland needs health policy that expands the circle of care. Proposition 44 risks drawing that circle smaller.

The Oakland Post editorial board urges a No vote on Proposition 44.

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Business

OP-ED: Proposition 40: It’s Time to Play Chess, Not Checkers

Proposition 40 would impose a one-time 5 percent tax on the wealth of Californians with more than $1 billion in assets. Most of that money would go toward health care, with the remainder supporting food assistance and education-related programs.

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I understand the frustration driving Proposition 40. I share our labor partners’ concerns about protecting health care and essential services at a time when working families are already under enormous pressure.

But labor itself is divided over Proposition 40, and there is good reason to look carefully at what this measure could mean beyond the money it promises to raise.

Proposition 40 would impose a one-time 5 percent tax on the wealth of Californians with more than $1 billion in assets. Most of that money would go toward health care, with the remainder supporting food assistance and education-related programs.

Those are worthy investments. The question is whether this is the right way to pay for them.

California’s independent Legislative Analyst says the measure could raise tens of billions of dollars in the short term. But that same analysis warns that California could eventually lose hundreds of millions of dollars a year in ongoing income-tax revenue if some wealthy taxpayers leave the state or change their financial behavior.

That matters because those dollars help support the General Fund and the broader system of programs and services Californians rely on.

So let’s be clear: This is not about feeling sorry for billionaires. Billionaires will be fine.

This is about protecting the people who will not be fine if we get the policy wrong.

For decades, those of us in Black media have watched public policy debates move from crisis to crisis. We have also watched Black communities deal with the consequences when decisions made in Sacramento or Washington did not fully consider what would happen two, three, or four moves later.

We know what happens when funding disappears. Community organizations struggle. Small businesses lose support. Programs serving young people are squeezed. Schools and local governments are asked to do more with less. The people with the fewest resources are usually the first to feel the consequences.

That history should make us cautious about making major changes to California’s tax system without considering the entire board.

If California believes billionaires should contribute more, then let’s have that conversation. There is nothing unreasonable about asking whether people who have benefited enormously from California’s economy should contribute more to sustaining it.

But we should build tax policy that is thoughtful, sustainable, and difficult to avoid. We should not create a temporary solution that could leave us confronting another revenue problem down the road.

This is also why I respect those in labor who support Proposition 40, even though I have reached a different conclusion. They are responding to very real concerns about health care and the people who depend on it. Those concerns should not be dismissed.

But neither should legitimate questions about Proposition 40.

Too often our politics tells us that if we agree with the goal, we must agree with the proposed solution. That is not how responsible public policy works.

You can believe health care must be protected and still question the mechanism being proposed to protect it.

You can believe billionaires should pay more and still ask whether this particular tax is the smartest way to accomplish that.

And you can stand with working people while insisting that California consider the long-term consequences for all of the public programs working people depend upon.

We need to stop treating complicated economic decisions like a game of checkers, where we look only at the move directly in front of us.

We need to play chess.

Look at the whole board. Think several moves ahead. Understand what happens after the first check is collected and spent.

The question before Californians is not whether billionaires can afford to pay more. They can.

The question is whether Proposition 40 is the right way to do it and whether we are confident enough in the consequences to make this kind of change.

Our communities cannot afford for us to discover the answer too late.

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Activism

Oakland Post: Week of September 30 – October 6, 2026

The printed Weekly Edition of the Oakland Post: Week of September 30 – October 6, 2026

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