Reuters.com published this article on March 25, 2008: “US News”
Reuters.com published this article on March 25, 2008: “Business and Finance”
FoxBusiness.com published this article on March 25, 2008
Did Eliot Spitzer and Ed Okun want to get caught by the authorities? Spitzer held his career killing federal endictment insighting activities in Washington D.C.. The worst place to keep a political secret on the planet is Washington D.C..
In the same light, Ed Okun’s undoing may have come primarily due to a ill advised moment of weakness that foreshadowed the man’s apparent disregard for taking chances regardless of circumstances. Of the 3 charges Okun faces, the money laundering charge may be the most difficult to fathom–and the most embarrassing.
According to a federal indictment, Okun instructed employees to “smuggle” $15,000 in cash via courier, to his yacht in the Bahamas, in order to avoid federal currency reporting requirements. Costar.com’s Mark Heschmeyer provided a quote from the indictment that illustrates just how blatant and careless Okun had become:
“[C]ould you fed ex $15,000 cash (large bills and pad the package with paper on both sides so it looks like a thick document, you may want to put it in several envelopes so they can’t tell what it is) to me here in nassau people don’t like credit cards here. I would suggest cashing two checks one for 5,200 and one for 9,800 so you stay under the 10,000 cash reporting with the irs or better yet take someone else with you, you cash one and they cash the other. I need it sent priority next day to: Atlantis Marina, Paradise Island, Nassau Bahamas, C/O motor Yacht Simone slip #4041, Telephone number 954-328-1481. Thanks, Ed.”
Just for the record, the excerpt within the above comment, “. . . I would suggest cashing two checks one for 5,200 and one for 9,800 so you stay under the 10,000 cash reporting with the irs or better yet take someone else with you, you cash one and they cash the other. . . “ brings up some interesting points:
1. IRS: Why would anyone ever mention the IRS by name in any type of communication when they are under federal investigation?
2. $10,000 IRS Reporting Limit: To my knowledge, the reason why the IRS instituted a federal law requiring any transactions $10,000 and above dates back to the Cocaine Cowboy days of drug smuggling and dealing in Miami. This was one of the government’s weapons against money laundering.
3. Employees or Partners: If Okun had “his” people committing unlawful acts is it possible that someone else may have been equally responsible for the $160,000,000 embezzlement? Or are we looking at a situation where there were just a large number of “associates” very willing to help Okun spend or steal from Okun himself? Nobody knows but questions remain.