Widow faces federal charges because she deposited inheritance money in lumps

 Via Police State USA

“You won’t prosecute a widow,” she pleaded.

Justice in America

DUBUQUE, IA — A widow’s bank account was seized by the IRS and she now faces criminal charges for depositing her legal inheritance money in lumps instead of all together.

Janet Malone, 68, had $18,775 seized from her — money that was legally earned and was legally bestowed to her by her late husband, Ronald Malone. The problem, according to the government, was the fact that she deposited it in several lumps instead of all at once.

According to the Associated Press, Mrs. Malone deposited the cash in increments between $5,800 and $9,000. The widow’s private financial affairs evidently set off red flags under the watchful gaze of the federal government.

The IRS sought out and obtained a warrant in 2013 to seize Mrs. Malone’s bank account based on suspicion that the transactions were sized in strategic amounts meant to avoid federal reporting requirements, which take place on transactions valued at $10,000 or more. The crime is referred to as “structuring” one’s deposits.

Police State USA described this offensive law in a previous article:

The federal government began surveilling Americans’ banking activities under President Nixon with the The Bank Secrecy Act of 1970, which required that banks file “Currency Transaction Reports” to the IRS (specifically: FinCEN Form 112) on every individual who deposits or withdraws more than $10,000 in cash to or from a personal bank account on a given day. These reports indicate the financial activities that took place and include the individual’s bank account number, name, address, and social security number.

The financial dragnet was pitched to America as a way to catch tax evaders and money launderers. It actually marked the end of financial privacy and soon evolved into a tool used to harass innocent Americans. The IRS enjoyed a battery of new powers, which were increased several times thereafter.

In 2001, the USA PATRIOT Act expanded financial surveillance efforts to the so-called War on Terror. The Patriot Act was said to contain a “package of unconstitutional expansions of the financial police state,” according to one of bill’s few dissenters, Congressman Ron Paul of Texas. Among other things, the law prohibited bankers from informing customers that they had been reported to the IRS. Paul said the bill had “more to do with the ongoing war against financial privacy than with the war against international terrorism,”

Once accused of structuring deposits, Americans are deprived of their bank accounts and forced to prove their innocence using whatever remaining resources they can scrape together. Some manage to eventually get their money back, after months of fighting in court. Due to the high cost of legal services, the victims sometimes decide to accept the loss and not invest thousands more into the ordeal.

“You won’t prosecute a widow,” Janet Malone pleaded, according to an affidavit. The government accepted her challenge.

Prosecutors not only declined to drop the civil forfeiture case against Mrs. Malone, but also slapped the widow with federal misdemeanor charges that she willfully structured her deposits.

The AP reported that Mrs. Malone is expected to plead guilty and let the government keep her money, in a plea exchange for her freedom. The charge carries up to one year in jail and a $250,000 fine.

Victims like Mrs. Malone are not unique. Police State USA wrote about another Iowa woman who recently had her entire bank account seized for the exact same reason. These women, and many other victims of forfeiture, harmed no one and were minding their own business.

One might observe the irony of demanding FinCEN reports, as it seems a bit redundant given the government’s disturbing ability to surveil bank accounts and detect Americans “avoiding” the reporting requirements.


45 thoughts on “Widow faces federal charges because she deposited inheritance money in lumps”

  1. Fuck the IRS What about the greasy crook Sharpton? He owes over $4 million yet gets a pass. This woman did absolutely nothing wrong. This shithole “country” doesn’t deserve to exist anymore!

  2. I’m not a bureaucrat, politician or lawyer but just a citizen and the obvious criminal here is the government!

  3. If there was any justice in this world, those who perpetrate these atrocities along with all those who were “just following orders” in the service of this evil Leviathan would be summarily executed when open revolt breaks out. Barring that, those who held government jobs or enforced their decrees should be forever shunned and reviled by all whom have the misfortune to cross their sorry paths…

    Indeed, the vast majority of evil is done by otherwise good people who do not wish to take the responsibility for their own thoughts and actions but instead choose to defer their morality and decency to other, less scrupulous men (and women).

  4. You can also be put away for withdrawing your money from the bank… especially if TPTB do not like your message.


    By Coach Dave Daubenmire
    February 5, 2015

    I have to be honest with you. I think about it often. Not a night goes by when I do not think about it as I craw in my warm bed beside my sweet wife of 35 years.

    “Will this be the night that the black limos pull in my driveway? Is this the night that the SWAT Team goons bust down my door and haul me off to the slammer?”

    I am being dead serious. I really do think about it every night because that is what they did to Dr. Kent Hovind.

    Here is a fair assessment of his story.

    Permit me to say right up front that I have no intention of committing suicide. I am madly in love with my wife, enjoy the time I spend with family and friends, and look forward to watching my grandchildren grow up around my feet.

    To the best of my ability I obey the laws of the nation, no matter how tyrannical I believe some of them to be, while I do my best to speak the Truth in such a way as my Savior would be honored by my life.

    But my outspoken style rubs many the wrong way, especially those who hold positions in the Government. Every time I type a word on my keyboard I wonder just who is going to be offended by what I say and across who’s desk will my commentary be passed.

    George Washington said, “Government is not reason, nor eloquence. It is force. And like fire, it is a dangerous servant and a fearsome master.” The IRS has ruined Dr. Kent Hovind’s life.

    It is a sad time in America when we are in fear of our government. You need look no further than what Lois Lerner did with the hammer of the IRS. We are all just one audit away from destruction.

    Does anyone really understand the tax code? Do you ever think twice when filing your tax returns as to whether or not your deductions and write-offs are in full compliance with the IRS code? How do you defend yourself from such a maize of tax-law and an army of government bureaucrats?

    When government reaches the point where they profit off of law-breaking we have reached a dangerous place. Government should be about seeking “justice” not enforcing laws. Today, law-breaking is big business for the government.

    Once the government finds out that they can increase their largess by “fining” citizens for code violations we can only expect more code violations will be levied.

    Prison is a place for violent, hardened criminals. It is not a place for people who simply violate codes statutes, and ordinances. Sentencing to prison a non-violent individual simply for breaking a “law” is inhuman. It is, in fact, a life sentence in that it destroys the perpetrator, the family, and the financial future of the family. The punishment does not fit the crime. Restitution…paying back the victim plus damages…is the solution spelled out in the Bible.

    Kent Hovind is a perfect example of the tyranny of the legal system. Known lovingly as Dr. Dino because of his affinity for dinosaurs, he is one of the nations foremost apologist for Creation Science. The internet is full of free videos of him presenting seminars where he destroys the phony science of evolution. Just do an internet search of his name.

    But this week, Dr. Dino has just completed his 99th month in Federal Prison for what the government claims was violation of the IRS tax code. Until the Feds burst into his house in the middle of the night back in 2004 Dr. Dino traveled the country defending Biblical Creation.

    Along the way he began to warn church’s of going into partnership with the government in the form of 501(c)(3) corporations. He claimed that the church needed no such partnership because the church was already “immune” from taxation. The church, he claimed, needed no such approval from the government and that by doing so churches where making themselves subject to the laws, codes, and statutes of the government. They labeled him a “tax protestor.”

    In many ways Kent Hovind is a political prisoner. It was what you would expect in a communist country like South Korea.

    While in jail Dr. Hovind has led thousands to saving faith in Jesus Christ. He conducts 4 Bible studies a day for the inmates. He has written 37 books. He has been married for 40 years. He has grandchildren that he has never held.

    Meanwhile Al Sharpton is invited to the White House, and hosts his own television show on MSNBC while owing over $4.5 million in taxes. Former Treasury Secretary Timothy Geithner got off Scot-free by blaming Turbo Tax.

    I could go on but it will just make your head spin. Read up on the case HERE and HERE. Now they want to banish Dr. Hovind to a deserted island for the rest of his life for “bank fraud” from jail. That is a locomotive coming down the railroad. You can hear his defense in this fascinating 6 minute interview from jail.

    Here is why the government is so effective at what they do. They arrest a guy like Dr Hovind and immediately label him a lawbreaker, tax-cheat, tax-protestor, and anti-government conspiracy theorist. They throw mud against the wall until something sticks thereby scaring any Christian group or organization who might be willing to come to his aid. His legal bills mount. His ability to earn a living has been destroyed, and his effective defense of the Gospel is relegated to inside the prison walls.

    I think of Dr. Hovind when I craw in bed at night. He has been away from his family for nearly 9 years. Many in the government hope he rots in jail. His sentencing judge said Kent’s activities were “worse than rape.” How do you fight city hall? How do you afford the lawyers to vindicate yourself? How do you fight against a biased judge and prosecutor?

    What will I do when they come for me? What will you do when they come for you? The average tax-sentence in America is 14 months. Kent has done 99 months and they want more of his hide. If we remain silent now in less than a month Dr. Hovind will be sentenced to life in jail.

    This is a fast-moving story and it is starting to get traction in the media. The powers-that-be are trying to block the story from mainstream media. Here is a good short video that explains how you can help.

    Don’t think it can’t happen to you. Speaking the Truth is dangerous business. Government is a fearsome master. FREE KENT HOVIND!!

    Watch just 2 minutes of this video.


  5. She was an easy target.That is all.She was mugged.The IRS used to go to poor neighborhoods in Texas with swamp coolers in the windows according to IRS worker and target people that could not fight back.Elderly people were committing suicide from the stress of IRS corruption.

  6. “She was an easy target.” ——– Anonymous

    That is SOOOO true !!!

    I worked in a 4 story office building. One of the “businesses” was an IRS tax office, in Parsippany NJ. No smoking in the building … everyone who smoked had this little designated area outside in which to congregate. Lots of IRS scumfuks smoked. I smoked. I overheard lots of their war stories.

    These people actual mocked taxpayers. They especially enjoyed “criers” … and those who were sorry, or afraid. They would descend upon them like sharks smelling blood. Conversely, they despised people who put up a fight.

    I think they got paid, or promoted, by the amount of cases they closed and/or the revenue they recovered. So, it makes sense to go after easy prey.

    Fuck tax collectors. Scum of the earth. Even Jeebus only loved ONE of them (Matthew). Modern day society. Crazy. There’s always somebody willing to fuck over someone else for a paycheck.

  7. This is about the sixth story I have read in the last few months where .gov has raped old people out of their money. Rat fucking bastards!! Perhaps SSS will impart some of his infinite judicial wisdom as to why the courts don’t address this blatant thievery.

  8. Did anyone say to themselves, “Damn, there must be more to this story than what Prison State USA reported?” Anyone? Well, I did, and sure enough, there is more to the story. And I’m probably going to take a bucket load of shit, and thumbs down, for even mentioning it. And away we go.

    “IRS agent Jeff McGuire first went to Malone’s home in 2011 to investigate alleged structuring by Ronald Malone, who was dying of cancer, records show. Ronald Malone admitted that bank deposits totaling $35,500 he’d made could appear to be structured and signed a form acknowledging he’d been warned about the law; no charges were filed. Janet Malone was present for part of the meeting.

    Shortly before his death in October 2011, Ronald Malone told his wife about a briefcase containing $180,000 cash from his job as a publishing executive, gambling winnings and investment income. She deposited some of it in increments between $5,800 and $9,000. The IRS obtained a warrant to seize it based on suspicion that the transactions were meant to avoid reporting requirements.

    Janet Malone was irate when she learned of the 2013 seizure, noting that she didn’t sign the form warning her husband and didn’t remember details of the earlier visit because “she was in a state of despair over her husband’s health,” according to an IRS affidavit.”

    So, there you have it. Janet Malone’s husband TOLD HER about $180,000 in cash that included cash from his job, gambling winnings, and investment income. Did Ronald or Janet Malone have any proof that any of this was income that had been reported to the IRS and which they had paid taxes. Obviously not, or the IRS would not have seized the $18 grand she deposited after her husband died.

    Look, if you’re going to evade taxes, at least be smart about it. Rent a safety deposit box, being mindful of a possible bank security camera in the private room where you put stuff in the deposit box, or as Maddie’s Mom said, “She should’ve just dug a hole in the backyard.”

    OK, folks, fire away when ready.

  9. Beaver ,if you would just pay your Damn taxes and stop free loading off the rest of us the IRS would probably find something better to do.It’s revolutionaries sum bags like you that give us all a bad name.Tax Cheat.

    Over all my relationship with IRS has been respectful. No fights , no name calling and no threats. I have just come out and ask them to lower my tax bill.One gal saved me over 3000 .I just ask her ifshe would reduce my bill and she did .

  10. SSS

    Hey, how have you been? Very nice post. I made a resolution that I will only say nice things about you at least until my birthday, on Feb 27. That’s two fucking weeks of happy happy joy joy coming your way. I think some here have been too harsh with you lately. It is unbecoming. I hope my example sets the path for others to follow. Starting with Flash.

  11. SSS

    The article states she was charged with “structuring” one’s deposits not failure to pay income tax. What is your point? There is a difference.

    bb- Shut the fuck up.

  12. “The article states she was charged with “structuring” one’s deposits not failure to pay income tax. What is your point? There is a difference.”
    —-Bea Lever @ SSS

    I can read for comprehension, Bea, but thanks for pointing out the obvious. Fact: Janet Malone pleaded guilty to the charge of structuring and let the IRS keep the $18 grand it had seized. Why did she do that? Probably on advice from her lawyer. Her lawyer had no comment on the case, so there is something fishy going on here that hasn’t been reported. In other words, a back door deal between Janet Malone and the IRS.

    Her husband had been warned about structuring by an IRS agent, and she knew it about it. Why did the IRS even visit Ronald Malone in the first place? Ronald Malone admitted he structured $35 grand and was warned about it. Was there more to that visit than meets the eye? We don’t know.

    How did the IRS know that Ronald Malone told his wife he had $180,000 in cash in a briefcase from his job, from gambling, and from investments? That too is a fact because its in the IRS case file.

    You know what I think. I think Ronald Malone was under suspicion by the IRS for under reporting his income from various sources and avoiding paying taxes. But evidently the IRS couldn’t PROVE IT at the time, so they flagged his banking activity.

    To do that, all they need is to present some modicum of evidence to a judge that Malone is under investigation for tax evasion. The judge then issues a warrant to Malone’s bank that requires Malone’s banking activity be reported to the IRS. THAT is what triggered the signs of structuring to the IRS and its subsequent visit to his home.

    Here’s the bottom line. On advice from her lawyer, widow Janet Malone gets to keep $162,000 of her husband’s stash of cash and forfeits $18,000 to the IRS.

  13. “I made a resolution that I will only say nice things about you at least until my birthday, on Feb 27.”
    —-Stucky @ SSS

    Very kind of you, Stucky. I’m sure that there will be many others who will gladly pinch-hit for you. Heh.

  14. SSS

    I mean this sincerely, you could not find your ass with both hands , a map and a guide dog.

    Old people in the south are famous for hiding hundred dollar bills in the pages of books (not a good idea IMO because of fire) and other various methods. Let’s say they had socked away 20 or 30 grand and then in some moment of stupidity they decide to deposit it in their bank account 5k at a time. Should they go to jail for structured deposits? What’s the dif?

  15. “I mean this sincerely, you could not find your ass with both hands , a map and a guide dog.”
    —-Bea Lever

    I present a perfectly plausible and detailed explanation for the Janet Malone case, and that’s the best you can up with in reply?

    You made zero attempt to explain this ……. “How did the IRS know that Ronald Malone told his wife he had $180,000 in cash in a briefcase from his job, from gambling, and from investments? That too is a fact because it’s in the IRS case file.” Yeah, and in the news reports too, which nobody else bothered to check except me.

    I do all the digging on this case and present facts that you either overlook or ignore, and all you can do in response is to hurl insults. I’m through wasting anymore of my time with you. You’re an intellectual lightweight if there ever was one.

  16. “You’re an intellectual lightweight if there ever was one.”
    —– SSS to Bea Lever

    K …. KA …. KAB …. KABO ….. KABOO ………. KABOOM !!!!!!!!!!!!!!!!!!!!!!

    And one third of the Holy Trinity just struck down One Foolish Mortal.

  17. I had seen this article before. SSS is right. The woman broke the structuring law. Intentionally putting cash deposits in the bank so as to miss the $10k threshold is illegal. She knew that there was a threshold, and had been warned. The law exists to prevent hiding of non-reported income, especially drug money and such.

    W can debate whether the law is just – probably not – but she was not the smartest twig on the tree. And there may be a little issue of tax.

    Aunt Bea is getting kicked pillar to post. Maybe more watching and less being stupid is in order, until she gets the hang of it.

  18. Stucky

    Spooky comes up with ONE LAME line and you act like he just fired the shot that won the war……not even close.

    “You’re an intellectual lightweight if there ever was one”……tisk, tisk SSS. The Holy Trinity is beginning to look like Donald Duck’s nephews, Huey, Dewey and Louie.

  19. Aunt Bea – SSS is dismissing you as not even being worthy to address. You are not getting it.

    You are becoming a laughingstock. That did not take long.

  20. Aunt Bea

    It was a GREAT line. He wins.

    Not even close? You are in NO position to make such judgments …. except for your own mental masturbation needs. I am Da Judge, have been for years. Ask Admin. As such, you lose. Now, go away you varmint.

    Come back when you can find your dick with two hands.

  21. @Bea Lever

    I think your line about SSS could not find his ass with both hands , a map and a guide dog was ten times better. Bea wins.

  22. You guys are missing the elephant in the room. HSBC launders Billions in drug money and gets a fucking slap on the wrist-cost of doing business fine; no execs are charged individually with anything. This poor widow gets threatened with a huge fine AND prison time. Seems to me we have a “two-lane” system of justice in the good ‘ol U.S.A. and hypocrisy rules.

  23. “…….who is the laughingstock?” ————– Clueless Believer

    Well, you are, of course.

    You see, we KNOW who Llpoh is. A guy who has been here for years. A guy who no doubt contributes moolah to keep this site afloat (that is a pure GUESS on my part). A smart man. A successful businessman. Someone who will try to help people here, if they ask, whenever he can. A guy who has written damn fine articles here. A guy who helps make this place “tick”.

    And you call him a laughingstock?

    What do we know about you? Hardly anything. You’ve written no articles. You’re just a Newbie with a laptop …. thinking you’ve earned the right to personally insult an Original Big Dog. Nice move.

    That’s why you’re the laughingstock. You should quit this bullshit while you can still save a shred of your reputation.

  24. Think about all the companies that go offshore and make millions in the U.S. And yet avoid paying taxes. G.E.? Sad how the average person gets the shaft and the wealthy get away with all kinds of crap.

  25. “Think about all the companies that go offshore and make millions in the U.S. And yet avoid paying taxes. G.E.? Sad how the average person gets the shaft and the wealthy get away with all kinds of crap.”

    I’ll tell you how that works. GE has on its payroll a building full of lawyers and accountants who specialize in corporate law and finances solely to advise the company how to maximize its profits and minimize its taxes. And you don’t. It’s that fucking simple.

  26. Saw this article even though a few years old its very telling-
    IRS Needs AR-15′s For “Standoff Capabilities”?


    By: Joshua Cook Aug 10, 2013
    IRS and BLM With Guns

    The IRS, which primarily acts as an audit agency, refuses to answer why its agents need AR-15s for “standoff capability.”

    In May, U.S. Congressman Jeff Duncan (R-SC) was getting a lot of questions about ammo shortages and government agencies stockpiling guns and ammo. He wanted to know why IRS agents were buying ammo in large quantities and wanted to see the ammo supply himself. He went to the Federal Law Enforcement Training Center (FLETC) in Maryland where he witnessed 8 or 9 IRS agents using AR-15s at an indoor 100 yard firing range.

  27. “The IRS data we obtained give rare insight into how federal forfeiture laws work and how they affect people caught in their web,” said Dick Carpenter, IJ’s Director of Strategic Research. “Most publicly available federal forfeiture data don’t reveal key details like whether forfeitures followed civil or criminal procedures, how long they take to resolve, or what alleged crimes justified seizures.”

    According to IRS data obtained by IJ and detailed in the new report:
    •From 2005 to 2012, the IRS seized more than $242 million for suspected structuring violations in more than 2,500 cases, and annual seizures increased fivefold over those eight years.
    •At least a third of those cases, like Carole’s, arose from nothing more than a series of cash transactions under $10,000, with no other criminal activity alleged.
    •Four out of five IRS structuring-related forfeitures were civil, not criminal, so the IRS faced a lower evidentiary standard and did not need to secure a conviction to forfeit the cash, and owners had fewer rights in fighting to win it back.
    •Like Carole, owners likely face a long legal battle to win their money back: The average IRS structuring-related forfeiture took nearly a year to complete.
    •Nearly half of the money initially seized by the IRS was not ultimately forfeited, raising concerns that the IRS seized more than it could later justify to forfeit the cash.

    For the full report on the exemplary work of this courageous, extraordinary group, see:


  28. Llpoh

    Only a low down skunk of a varmint would point the finger at old Aunt Bea. If you are downed it is purely because of what you posted.I am shocked and dismayed and await your explanation of this douchbaggery.

  29. I have a friend in south Georgia who spent 18 months in Federal detention for conspiracy to evade taxes. Seems that he paid his taxes, but, he used a tax preparer and that constituted evading taxes. I don’t have the cite, but the SCOTUS ruled at least once that tax payers have a duty to avoid taxes…Go figure.

  30. “I don’t have the cite, but the SCOTUS ruled at least once that tax payers have a duty to avoid taxes.”

    Double, triple, quadruple bullshit. Show me the ruling.

  31. @ Billy

    The 16th Amendment to the Constitution (income taxes, passed in 1913) was THE most damaging change to the Constitution ever. It is the root cause off nearly everything that ails our Republic today.

  32. @ SSS

    I would argue the 17th was the most damaging, followed closely by the 16th.

    Both were passed in 1913 and that should be the date on the tombstone of the Republic.

  33. SSS

    Here is one cite:

    “The legal right of a taxpayer to decrease the amount of what otherwise would be his taxes, or altogether avoid them, by means which the law permits, cannot be doubted.”

    293 U.S. 465; (1934)

    Specific quote from Judge Learned Hand from the above case:

    “Anyone may so arrange his affairs so that his taxes shall be as low as possible. He is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one’s taxes.”


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