March 11, 2008
Details Don't Add Up in ABC Report of Eliot Spitzer Bust
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When banks and other financial institutions are suspicious about customer transactions, they are supposed to file "Suspicious Activity Reports" with the Financial Crimes Enforecement Network (FinCEN), a unit of the Department of the Treasury that is distinct from the IRS. FinCEN reviews the information and passes it along to the appropriate law enforcement agency.
FinCEN is not part of the IRS. This is a mistake on a par with saying the Justice Department's Public Integrity Section were a part of the FBI.
Someone in the loop here doesn't understand how money laundering and other financial crimes are investigated. Maybe it is ABC's Brian Ross. Or maybe Ross is just being a stenographer for his source, and his source was being sloppy.
Or maybe his source was one of those Regent University School of Law grads who infest the Bush Justice Dept., who have a better understanding of team play and party loyalty than they do of, well, the law.
If I were trying to misdirect people away from a politicized takedown of a powerful governor from the enemy party, I would want to get the details of my cover story right.
Tags: eliot spitzer prostitution corruption justice dept scandal brian ross irs fincen suspicious activity report sar public integrity section politicization
Posted by abostick at March 11, 2008 11:08 AM*snort* In veriest deed.
... on a more personal note, I can tell I've been over-focusing on the current Anglican kerfluffles when I see "ABC" and my first thought is "Archbishop of Canterbury" rather than the television station. (though it should be AbC, really, or AbpC)
Posted by: Gramina at March 11, 2008 01:59 PMWhen an SAR is generated it is sent to the Treasury. The IRS has a criminal investigations unit, and most SARs that are believed to be financial crimes are sent to the IRS, not the Secret Service.
As a tax professional, this aspect of the story--an SAR that led to an IRS investigation--is quite believable. I've dealt with the ramifications of SARs in the past, and this exact sequence of events.
Posted by: Russ Fox at March 11, 2008 04:22 PM
