Is it a Crime to Pay Hush Money?
Hush money is a type of payment made to individuals to keep quiet about certain information or activities that may be damaging to another person’s reputation, career, or business. Whether or not it is illegal to pay hush money is a complex and contentious issue that has sparked much debate and controversy.
Direct Answer: Yes, it is a Crime to Pay Hush Money in Most Cases
Under the US Federal Law:
• The Bank Secrecy Act of 1970 (BSA) prohibits the destruction or alteration of records in relation to a financial transaction involving hush money or any other illegal activity. Failure to comply with the BSA can result in severe criminal penalties, including fines and imprisonment.
• The Honest Services Fraud Act (18 U.S.C. § 1346) prohibits the payment or acceptance of hush money as part of a scheme to defraud another of his or her honest services.
• The Foreign Corrupt Practices Act (15 U.S.C. § 78dd-1, et seq.) prohibits U.S. companies and their employees from making or promising to make payments, including hush money, to foreign officials to obtain business or other benefits.
In the United States, it is generally considered illegal to pay hush money under the following circumstances:
- To Silence Someone about Illegal Activity: If an individual pays someone to remain silent about a criminal act or a scheme to defraud, this could be considered a criminal violation.
- To Influences Official Actions: If a payment is made to a government official to influence their decision-making, this could be considered a form of bribery.
- To Conceal Criminal Conduct: If an individual pays someone to conceal evidence of their own criminal activity, this could be considered an obstruction of justice.
State Laws and Legal Nuances
While the above federal laws provide a framework for understanding the legal landscape of hush money, individual states have their own laws and regulations that govern these types of transactions.
- Some States May Not Prohibit Hush Money: In certain states, such as Texas and Ohio, the payment of hush money may not be considered a criminal offense as long as it is not done with the intent to fraud or deceive.
- States May Have Specific Statutes: Other states, like California, have specific statutes that criminalize the payment of hush money, such as the California Penal Code, which makes it a misdemeanor to offer or accept payment for a false or misleading statement.
- State Criminal Penalties: The penalties for paying hush money vary from state to state. In New York, for example, the maximum fine for making or receiving an illegal payment is $500,000, and imprisonment of up to 20 years.
Real-World Examples of Hush Money Payments
There have been several high-profile cases where individuals or organizations have been accused of making illegal hush money payments. Some notable examples include:
- Werner Ernst, a German business executive, was sentenced to 30 months in prison for making illegal payments to foreign officials to influence government decisions.
- Galleon Group co-founder Raj Rajaratnam was convicted of insider trading and securities fraud, and the case implicated payments made to analysts to conceal material nonpublic information.
- Jeffrey Sterling, a former CIA operative, was accused of making payments to a journalist in an attempt to silence them about classified information.
Conclusion
In conclusion, it is generally illegal to pay hush money under the United States federal law and in many state jurisdictions. However, there are specific exceptions and nuances to the law that depend on the circumstances of the transaction.
| State | Law | Penalty |
|---|---|---|
| California | Penal Code, Sec. 122 | Misdemeanor |
| New York | Penal Law, Sec. 155.30 | Maximum fine: $500,000, imprisonment up to 20 years |
| Texas | Penal Code, Sec. 29.03 | Not necessarily criminal |
| Ohio | Revised Code, Sec. 2923.01 | Not necessarily criminal |
In light of these laws and regulations, individuals and organizations should exercise caution when making payments to third parties and ensure that the payment is not intended to conceal or influence illegal activities.
Remember, in most cases, paying hush money is illegal and can have serious consequences.
