{"id":21894,"date":"2025-09-14T08:54:17","date_gmt":"2025-09-14T12:54:17","guid":{"rendered":"https:\/\/jimbovard.com\/blog\/?p=21894"},"modified":"2025-09-14T17:37:17","modified_gmt":"2025-09-14T21:37:17","slug":"feds-ignored-epstein-crime-wave","status":"publish","type":"post","link":"https:\/\/jimbovard.com\/blog\/2025\/09\/14\/feds-ignored-epstein-crime-wave\/","title":{"rendered":"N.Y. Post: Why Did Feds Ignore Epstein&#8217;s Financial Crime Wave?"},"content":{"rendered":"<p><a href=\"https:\/\/jimbovard.com\/blog\/wp-content\/uploads\/2025\/09\/jpb-NY-Post-9-14-25-sharpened-.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-21901\" src=\"https:\/\/jimbovard.com\/blog\/wp-content\/uploads\/2025\/09\/jpb-NY-Post-9-14-25-sharpened--1024x818.png\" alt=\"\" width=\"1024\" height=\"818\" srcset=\"https:\/\/jimbovard.com\/blog\/wp-content\/uploads\/2025\/09\/jpb-NY-Post-9-14-25-sharpened--1024x818.png 1024w, https:\/\/jimbovard.com\/blog\/wp-content\/uploads\/2025\/09\/jpb-NY-Post-9-14-25-sharpened--800x639.png 800w, https:\/\/jimbovard.com\/blog\/wp-content\/uploads\/2025\/09\/jpb-NY-Post-9-14-25-sharpened--150x120.png 150w, https:\/\/jimbovard.com\/blog\/wp-content\/uploads\/2025\/09\/jpb-NY-Post-9-14-25-sharpened--768x613.png 768w, https:\/\/jimbovard.com\/blog\/wp-content\/uploads\/2025\/09\/jpb-NY-Post-9-14-25-sharpened--1536x1227.png 1536w, https:\/\/jimbovard.com\/blog\/wp-content\/uploads\/2025\/09\/jpb-NY-Post-9-14-25-sharpened--2048x1636.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<p>New York Post, September 14, 2025<\/p>\n<h1><a href=\"https:\/\/nypost.com\/2025\/09\/14\/opinion\/jeffrey-epstein-skirted-the-same-law-the-irs-uses-to-ruin-small-businesses\/\">Code of the Elite<\/a><\/h1>\n<p>by James Bovard<\/p>\n<p>JPMorgan helped Jeffrey Epstein commit thousands of federal banking-law violations, per a bombshell <a href=\"https:\/\/74d1c5e3.streaklinks.com\/Ck11i7_CArgaBWLLnwjyJ6zo\/https%3A%2F%2Fwww.nytimes.com%2F2025%2F09%2F08%2Fmagazine%2Fjeffrey-epstein-jp-morgan.html\">New York Times<\/a> report. Federal regulators perpetually ignored endless red flags of Epstein\u2019s multimillion-dollar child-sex-trafficking operations.<\/p>\n<p>Federal money-laundering law requires banks to file a report for each cash transaction exceeding $10,000. Epstein was pulling out $800,000 in cash each year, \u201cmuch of which was used to procure girls and young women,\u201d the Times details. Shortly after Epstein\u2019s death in a New York prison cell, in late 2019, JPMorgan \u201cfiled a report with federal regulators that retroactively flagged as suspicious some 4,700 Epstein transactions \u2014 totaling more than $1.1 billion.\u201d<\/p>\n<p><strong><u>\u00a0<\/u><\/strong>JPMorgan kept Epstein as a favored client long after the disgraced financier pleaded guilty and went to prison for soliciting and procuring a minor for prostitution. In 2013, federal regulators \u201cissued a cease-and-desist order against JPMorgan for anti-money-laundering lapses,\u201d including \u201cfailing to report suspicious activities to the government,\u201d the Times reports.<\/p>\n<p>Ironically, during Epstein\u2019s financial crime spree, the Internal Revenue Service was wreaking havoc on hapless small businesses for violating the same law. Between 2005 and 2012, the <a href=\"https:\/\/74d1c5e3.streaklinks.com\/Ck11i7_09EUkLqz4SQkWHjBz\/https%3A%2F%2Fij.org%2Freport%2Fseize-first-question-later%2F\">IRS seized a<\/a> quarter-billion dollars from banks because it disapproved of how businesses and individuals structured their deposits and withdrawals. The IRS pilfered more cash from private bank accounts because of alleged paperwork errors than the total bank robbers looted nationwide.<\/p>\n<p>IRS agents in 2012 confiscated the bank account of Carole Hinders, who had run a small restaurant, Mrs. Lady\u2019s Mexican Food, in Arnolds Park, Iowa, for 40 years. She lost $33,000 because she deposited proceeds from her cash-only business into the local bank in amounts of less than $10,000. Banks are prohibited from warning customers such deposits can trigger a federal seizure. Hinders was <a href=\"https:\/\/74d1c5e3.streaklinks.com\/Ck11i77PD86TxYB1EQammv42\/https%3A%2F%2Fwww.nytimes.com%2F2014%2F10%2F26%2Fus%2Flaw-lets-irs-seize-accounts-on-suspicion-no-crime-required.html\">shocked<\/a>: \u201cWho takes your money before they prove that you\u2019ve done anything wrong with it?\u201d When the feds offered to drop the case by refunding her a portion of the seizure, she <a href=\"https:\/\/74d1c5e3.streaklinks.com\/Ck11i7_PDxNh6_5zSw-YgQ8J\/https%3A%2F%2Fwww.desmoinesregister.com%2Fstory%2Fnews%2Finvestigations%2F2015%2F04%2F04%2Fforfeiture-mrs-ladys-carole-hinders%2F25309217%2F\">scoffed<\/a>: \u201cI would rather throw the money in the garbage than settle with the IRS.\u201d The agency returned all her money after the nonprofit Institute for Justice helped put her case in the headlines.<\/p>\n<p>Randy Sowers, owner of South Mountain Creamery in the distant Maryland suburbs of Washington, DC, was hammered with a $63,000 \u201cstructuring seizure\u201d in 2012. The Washington Post noted: \u201cSowers is a high-school-educated entrepreneur who describes himself <a href=\"https:\/\/74d1c5e3.streaklinks.com\/Ck11i77urr_BK9f8uwqTPxTv\/https%3A%2F%2Fwww.washingtonpost.com%2Flocal%2Fdc-politics%2Funcle-sam-may-have-picked-the-wrong-cash-cow%2F2015%2F04%2F14%2F227aa73c-de2e-11e4-a500-1c5bb1d8ff6a_story.html\">as inspired by God to<\/a> deliver local dairy products to busy locavores.\u201d A bank teller told his wife that deposits in excess of $10,000 from their farmers\u2019 markets sales and elsewhere required a special form, so they kept deposits below $10,000. But after Sowers complained to local media, the feds played hardball with him. The feds <a href=\"https:\/\/74d1c5e3.streaklinks.com\/Ck11i8MxMdHTP6W3BArCALT_\/https%3A%2F%2Fwww.forbes.com%2Fsites%2Finstituteforjustice%2F2016%2F06%2F29%2Fmaryland-dairy-farmer-beats-the-irs-will-recover-nearly-30000-seized-through-civil-forfeiture%2F\">refunded his money<\/a> a few years later after national papers picked up the story.<\/p>\n<p>A flock of federal agents arrived at L&amp;M Convenience Mart in the one-horse town of Fairmont, NC, in 2014 to notify owner Lyndon McLellan the IRS had confiscated $107,702.66 from his bank account. McLellan deposited his market\u2019s proceeds in amounts under $10,000; the feds had no other evidence or allegations of wrongdoing. After a congressional hearing addressed McLellan\u2019s case, a federal prosecutor warned his lawyer: \u201cPublicity about it doesn\u2019t help. It just ratchets up feelings in the agency.\u201d When the Institute for Justice came to McLellan\u2019s assistance, the IRS offered a partial refund of its unjustifiable seizure. Lawyer Robert Everett Johnson summarized the IRS\u2019s settlement offer: \u201cWe\u2019re not <a href=\"https:\/\/74d1c5e3.streaklinks.com\/Ck11i7_Ghn39Qarbpgih1t3H\/https%3A%2F%2Fwww.washingtonpost.com%2Fnews%2Fwonk%2Fwp%2F2015%2F05%2F15%2Fhow-the-irs-seized-a-north-carolina-businessmans-life-savings-without-ever-charging-him-with-a-crime%2F\">going to prosecute but<\/a> we think you should give us half your money anyway.\u201d After further toxic publicity, the IRS gave a full refund.<\/p>\n<p>The number of IRS seizures rose more than fivefold between 2005 and 2012, but the vast majority of victims were never criminally prosecuted for structuring offenses. \u201c<a href=\"https:\/\/74d1c5e3.streaklinks.com\/Ck11i7_VlabNIrOOugE900k1\/https%3A%2F%2Fij.org%2Fpress-release%2Fhouse-unanimously-passes-bill-curb-civil-forfeiture-irs%2F\">One-third of those cases<\/a> involved nothing more than making a series of sub-$10,000 cash transactions,\u201d the Institute for Justice reports. Such seizures can cost $20,000 or more in legal fees to fight \u2014 a prohibitive cost, especially since half the grabs were less than $35,000.<\/p>\n<p>The IRS chose to seize first, ask questions later. A 2017 inspector-general report found no evidence in 91% of the seizure cases that the money came from illegal activities. IRS criminal investigators simply looked at banking records and then confiscated private accounts. Most of the victims were \u201clegal businesses such as jewelry stores, restaurant owners, gas station owners, scrap metal dealers, and others.\u201d The IRS targeted businesses with legal sources of income because, as the IG reported, the Justice Department \u201chad encouraged task forces to <a href=\"https:\/\/74d1c5e3.streaklinks.com\/Ck11i7_mprLcdUwzSwsF5g62\/https%3A%2F%2Fwww.tigta.gov%2Freports%2Faudit%2Fcriminal-investigation-enforced-structuring-laws-primarily-against-legal-source-funds\">engage in \u2018quick hits,\u2019<\/a> where property was more quickly seized . . . rather than pursuing cases with other criminal activity (such as drug trafficking and money laundering), which are more time-consuming.\u201d Congress passed a law in 2019 seeking to block IRS seizures of assets from innocent owners.<\/p>\n<p>Even after his conviction on child-sex charges, Jeffrey Epstein could hire the most powerful lawyers in the land, including Ken Starr, the independent counsel who targeted President Bill Clinton. That helped ensure JPMorgan and the feds overlooked his abuses until far too many females were victimized. <strong>Do federal agencies still view average Americans and small businesses as \u201cquick hits\u201d to bolster their press releases and enforcement statistics? Or will due process and basic decency score a rare triumph in Washington?<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York Post, September 14, 2025 Code of the Elite by James Bovard JPMorgan helped Jeffrey Epstein commit thousands of federal banking-law violations, per a bombshell New York Times report. Federal regulators perpetually ignored endless red flags of Epstein\u2019s multimillion-dollar child-sex-trafficking operations. Federal money-laundering law requires banks to file a report for each cash transaction [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":21901,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[2779,243,49,4613,2224,719,4644,4645],"class_list":["post-21894","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-institute-for-justice","tag-iowa","tag-irs","tag-jeffrey-epstein","tag-ken-starr","tag-north-carolina","tag-randy-sowers","tag-south-mountain-creamery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>N.Y. 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Post: Why Did Feds Ignore Epstein&#8217;s Financial Crime Wave?"}]},{"@type":"WebSite","@id":"https:\/\/jimbovard.com\/blog\/#website","url":"https:\/\/jimbovard.com\/blog\/","name":"James Bovard","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/jimbovard.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/jimbovard.com\/blog\/#\/schema\/person\/79550830ad81c14be529a2c37469974f","name":"Jim","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/d95466cfd0934e38803c5035629df727ae4ec1f3f96c6883c05b5c52e2044505?s=96&d=mm&r=r","url":"https:\/\/secure.gravatar.com\/avatar\/d95466cfd0934e38803c5035629df727ae4ec1f3f96c6883c05b5c52e2044505?s=96&d=mm&r=r","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d95466cfd0934e38803c5035629df727ae4ec1f3f96c6883c05b5c52e2044505?s=96&d=mm&r=r","caption":"Jim"},"description":"Bovard's homepage is at http:\/\/www.jimbovard.com He can be contacted at jim@jimbovard.com James Bovard is the author of ten books. The Wall Street Journal called Bovard \"the roving inspector general of the modern state\" and Washington Post columnist George Will called him a \"one-man truth squad.\" His 1994 book, Lost Rights: The Destruction of American Liberty, received the Free Press Association\u2019s Mencken Award as Book of the Year. His Terrorism &amp; Tyranny won the Lysander Spooner \"Best Book on Liberty in 2003\" award. He received the Thomas Szasz Award for Civil Liberties work, awarded by the Center for Independent Thought and the Freedom Fund Award from the Firearms Civil Rights Defense Fund of the National Rifle Association. Bovard\u2019s writings have been publicly denounced by FBI director Louis Freeh, the Secretary of Agriculture, the Secretary of Housing and Urban Development, the Postmaster General, and the chiefs of the U.S. International Trade Commission, the Drug Enforcement Administration, the Equal Employment Opportunity Commission, and the Federal Emergency Management Agency, as well as by many congressmen and other malcontents.","sameAs":["http:\/\/www.jimbovard.com","https:\/\/www.facebook.com\/jim.bovard","https:\/\/x.com\/jimbovard"],"url":"https:\/\/jimbovard.com\/blog\/author\/admin\/"}]}},"_links":{"self":[{"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/posts\/21894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/comments?post=21894"}],"version-history":[{"count":3,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/posts\/21894\/revisions"}],"predecessor-version":[{"id":21905,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/posts\/21894\/revisions\/21905"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/media\/21901"}],"wp:attachment":[{"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/media?parent=21894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/categories?post=21894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/tags?post=21894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}