Dubuque widow pleads guilty to violation of anti-structuring laws

CEDAR RAPIDS - A Dubuque widow who broke up cash deposits to avoid federal reporting requirements pleaded guilty Tuesday in federal court.

Janet E. Malone, 68, pleaded guilty to one misdemeanor count of willful violation of an anti-structuring regulation in U.S. District Court.

According to the plea agreement, Malone admitted she made 12 structured cash deposits totaling $89,100 into her Dubuque Bank and Trust account. The deposits were made about one year after IRS agents warned Malone's husband, Ron, that structuring laws don't allow such transactions. She was with her husband at the time.

Ron Malone told agents he closed a safe-deposit box and made cash deposits totaling $35,500 from April 7 to 12, 2011, which could appear to be structured, according to court documents. He then used the funds to buy a home and/or vehicle in Arizona.

Janet Malone told authorities her husband had her retrieve a briefcase from the basement of their home in late August or early September 2011, which contained bonuses from Ron Malone's employment, gambling winnings and money from an investment in North Carolina, according to court documents. After her husband died Oct. 21, 2011, Janet Malone put the cash from the briefcase into a safety deposit box.

Janet Malone obtained a cashier's check from the bank in exchange for $21,231, which was payable to Guided Home Design, according to court documents. Bank officials told her they would be filling out a currency transaction report.

The structured cash deposits made from June to November 2012 were all under $10,000, ranging from $5,800 to $9,000 for a total of $89,100, according to the plea agreement. The bank is required to report currency transactions over $10,000.

Janet Malone remains free on bond pending sentencing. She faces less than one year in prison, a $100,000 fine and up to one year of supervised release following any prison time.