Nearly $100,000
forfeited to IRS
after discovery


By Jody Norwood
Tribune-Courier News Editor
jnorwood@tribunecourier.com

PADUCAH – One charge of structuring deposits has already cost a local man $99,791 after pleading guilty in McCracken County District Court. Jan E. Flowers, of Benton, could face up to five years in prison and $250,000 in fines.

Flowers entered a guilty plea June 1 for one count of structuring deposits. Flowers admitted that from July 7 through August 9, 2007, he made 11 cash deposits totaling $105,200. According to reports, Flowers admitted that he intentionally kept his cash deposits at or under $10,000 to keep the bank from reporting his transaction to the IRS. As part of his plea Flowers agreed to forfeit to the government approximately $99,791 as money involved in structuring.

“When an individual does a transaction of $10,000 or greater, the bank fills out a report,” said Jennifer Pollard, IRS Criminal Investigation public information officer for the Nashville field office. “Banks, by law, are required to fill out a Currency Transaction Report. By making deposits under $10,000, you’re structuring your transactions to keep that from coming out.”

Many lending institutions employ security officers to monitor accounts for possible structuring activity, also known as “smurfing.” Currency transactions, unlike checks or debits, are difficult to trace due to a lack of a paper trail. Abusers try to find ways around the law by making cash deposits into the same account by depositing at different branches or having multiple people make deposits.

Normal deposits from businesses or inheritance settlements can also make it difficult for investigators to differentiate with structuring.

“We don’t mean someone who legitimately puts in $5,000 one day and $1,000 the next,” Pollard said. “We’re looking for people who have a continual pattern. We’re looking for more deliberate actions.”

According to the Attorney General’s charges, Flowers made three deposits of $10,000 between July 9, 2007 and July 12, 2007. Flowers then made eight deposits of $9,901 or less between July 21, 2007 and August 9, 2007.

Flowers is scheduled to be sentenced on Sept. 14.