The War On Cash Destroys A Small Entrepreneur

Tyler Durden's picture

Submitted by Joseph Salerno via Mises Canada,

Lyndon McClellan is a small entrepreneur who owns and operates L & M Convenience Mart in Fairmont, North Carolina.

L & M comprises a gas station, convenience store, and a small restaurant serving hot dogs, hamburgers, and catfish sandwiches.  One day last July, more than a dozen federal, state and local law enforcement agents swarmed Mr. McClellan’s business, including agents from the FBI and the North Carolina Alcohol and Law Enforcement agency—and they were “asking” for him.  When Mr. McClellan arrived, he was escorted by two federal agents into his stock room for a private chat.  The agents showed him paperwork indicating that he had made two cash deposits totaling $11,400 within a 24-hour period in his bank account at the Lumbee Guarantee Bank.  They informed him that the papers also indicated that he had a history of “consistent cash deposits” of less than  $10,000, which was a violation of the the Federal law against “structuring.”  They also informed him that the IRS had seized all of the $107,702.66 in L & M’s bank account.

What Mr McClellan did not know was that it was against the law to make cash deposits of lessthan $10,000.  Banks are legally obligated to report any deposit of more than $10,000 to the U.S. Treasury Department.  But if an individual makes several cash deposits of less than $10,000 over an unspecified period of time that total more than $10,000, then he is presumed to be a money launderer or drug trafficker who is committing the dastardly crime of structuring, that is, seeking to circumvent the bank’s reporting requirement and maintaining the privacy of his financial affairs Thus banks are also required to file “suspicious activity reports” on cash deposits of less than $10,000.   Based on these reports, if one is merely suspected–not convicted–of structuring, his bank account is seized by the IRS under “civil asset forfeiture” laws, which permits seizures of money or other property suspected of being related to a crime.

Government agencies have a financial incentive to invoke civil asset forfeiture laws because the law permits the seizing agency to keep the assets and use them to expand  their activities without an appropriation from Congress.  In its insatiable hunger for funds, the IRS even  “deputizes”  state and local law enforcement agencies to go through “suspicious activities reports” in exchange for a cut of the loot subsequently seized by the IRS.  This is probably how a small entrepreneur like Mr. McClellan living peacefully in a sleepy hamlet was targeted for destruction in the War on Cash.

Months after the seizure of his bank account, the federal government offered Mr. McClellan 50 percent of his money back if he agreed to a settlement.  He heroically refused and intends to pursue the matter in court.  Unfortunately, under the oppressive and despotic “civil asset forfeiture” laws, he bears the burden of proving his innocence.  But as he puts it:

It’s not fair to the American people who work for a living that one day they can knock on the door, walk in their businesses, and say, ‘We just took your money’ … I always thought your money was safe in the bank, but I wouldn’t say that now.

Neither would I!

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Occident Mortal's picture

Nazi Germany didn't even do stuff like this.

Have Americans got no shame??

Pladizow's picture

When in history has it not ended up as the people versus the government?

Billy the Poet's picture

You didn't launder that (but what difference does it make now?).

HowdyDoody's picture

Destroying small business is a feature not a bug.

kill switch's picture

There goes the neighborhood poker game...

 

Waylon Bits's picture

Fuck the Feds!  Freedom for the Carolinas!

(And hopefully this guy skips the "deposit" part altogether from now on!")

MonetaryApostate's picture

There is no time like the present to learn where we are headed...

Big changes are coming, for certain...

http://galeinnes.blogspot.com/2015/04/a-rapidly-changing-world.html

Arnold's picture

Pay your venders with bitcoin.

DutchR's picture

Hahahaha, Land of the Free home of the Brave...

 

 

InjectTheVenom's picture

Land of the FEE & home of the SLAVE

Just Another Truther's picture

"wherever there's a cop beatin' a guy 


Wherever a hungry newborn baby cries 

 
Where there's a fight 'gainst the blood and hatred in the air 
Look for me Mom I'll be there 


Wherever there's somebody fightin' for a place to stand 
Or decent job or a helpin' hand 


Wherever somebody's strugglin' to be free 
Look in their eyes Mom you'll see me."

A Nanny Moose's picture

Fuck these idiot fucking criminal thugs, their fucking badges, their fucking costumes, and their fucking system.

Logically, were I a money launderer attempting to evade pry eyes of these criminal thugs in DC, I would only deposit in amounts over the threshold. These thugs are too fucking stupid to understand logic. Their judgement is clouded by "the law" and the fact that we let them have all the biggest guns. That is all they have.

JLee2027's picture

How could any honest FBI or Government employee participate in this? Shame on you. 

PhilB's picture

This law is ridiculously stupid and definitely disproportionate and even smacks of intended entrapment, a simple resolution is to change the law such that all cash deposits above 1000 USD are systematically reported to IRS with no bank teller discretion. This law as it is leaves way too much discretion in the hands of people that can be used prejudicially as it seems to be here and likely elsewhere. No big deal pl super simple law change to lower the limit and remove this horrible discretionary power.

Overfed's picture

I have a better idea. How about if nothing gets reported to the IRS? Ever. And while we're at it, let's rid ourselves of the criminal IRS, FBI, and so on.

Spigot's picture

Usually a local bank will not "turn in" a small business owner for "structuring" if there is a pattern of business which is legitimate and has historical precident. In the $5k-$9k range of deposits the bank has discretion on reporting.

The problem here is (IMO) someone wanted to ruin this guy and used the banking regs to do so. Maybe he got in a fight with a brother of a relative of the bank executive. Maybe he started displaying his conservative (or liberal) bent in the political arena, backed "the wrong" candidate, etc. Maybe he un-friended a sociopath on Facebook who had major influence. We will never know the real back story.

We do know the problem: exposure of assets to governmental authorities. They guy had a $107k honey pot sitting there like money in a sack on the side of the road.

Lesson here: do not expose yourself. Find a way to unexpose yourself.

On the other side of this, convenience stores can be outlets for "bath salts" and other shit like that. So, his business has a higher risk profile ranking in some database somewhere.

Overfed's picture

Because there are none.

greenskeeper carl's picture

Gotta love how instead of the burden of proof being on the state, you know have the burden of proving your innocence. There is no saving a government that acts like this or a country whose citizens tolerate it.

BraveSirRobin's picture

There is virtually no small buisness in America that can afford to keep $10,000 in unproductive funds laying around in their establishment.Keeping that kind of cash also makes them an increased robbery risk. All freedom loving men should lobby their lawmakers until this abomination is ended.

TheReplacement's picture

"All freedom loving men should lobby their lawmakers until this abomination is ended."

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

Anusocracy's picture

Some monkey troop member just had to down vote you.

DutchR's picture

They get paid per click

Damn TheReplacement sideway scrolling, that is old skool

Ward cleaver's picture

Worked in banking and originally this was meant to capture drug lords who couldn't"t get their cash out of the country. Now, like everything else today, common sense is thrown out the window if the government can make money. Ever drive thru these states? Great scam where they have 70 mph speed limits then pull u over for doing 81 which is a misdemeanor and since they pull over out of state cars, they start the cop-attorney-court scam where u pay $300 to a shyster who gets it knocked down to 78 and u pay fine + court fees for a total bill of $650.

As economy deteriorates, look for governments to implement more of these "programs"

DutchR's picture

But do they have change on a 9mm?

 

 

yes yes it's a s/

willwork4food's picture

KILL THEM

 

I second this motion

j reuter's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... w­w­w.j­o­b­s­-r­e­v­i­e­w.c­o­m

Billy the Poet's picture

$7k per month? Is that a single deposit? I smell terrorist.

nuubee's picture

He's no terrorist, he's a freelance entrepreneur with a desire for barbarous relics.

HyHoSilver's picture

Let's turn this guy in. I'm tired of his shit...

DutchR's picture

Tyler got his back, eat it like you like it and shut up.

You do like reading ZH right?

 

Job tingy is a Tyler thingy, clikerdy click

HyHoSilver's picture

This guy is a terrorist . Let's turn him in. I'm tired of reading his shit...

Rakshas's picture

My webfooted Vietnamese amputee girlfriend makes 2.50 an hour performing sex acts with fainting goats down by the 7-11 ........so fuck you and your 7k a month............ I love that little web footed freak.......... 

A Nanny Moose's picture

Does that come with benefits?

angryBuddhist's picture

So long as she is not being paid in cash she's got nothing to worry about . . .

DutchR's picture

You made me google "webfooted", ehm, "with toes that are joined by a piece of skin".

But the fainting goats........... tell me more

winchester's picture

talking behind a screen is not handing the weapon in situ.

everyday i walk in the streets, everytime i look at people, just because you have sunglass and cap, they lower the head as soon as they see you coming front.

population is scared, self centered.

 

 

 

Payne's picture

Most small business owners do not deposit cash, they have no records of ever having received it.  I guess he didn't know.

greenskeeper carl's picture

No shit, that's the funny thing. So many people don't keep records for because they don't want to pay taxes on cash sales, or only a small % of them. This poor sucker actually thought that if he followed all the rules, and didn't do anything wrong, the law was on his side and he would be safe. Not in the ussa, my friend. That'll teach him to trust a bank or government...

A Lunatic's picture

Yep, the fat lazy fucker got what he deserved.....

Son of Loki's picture

This guy needs to take a few lessons form the Paki convenience store owner down the block.

Fahque Imuhnutjahb's picture

However, I take great solace in knowing that justice is meted out equally, and that this fellow gets the same treatment afforded to the likes of Blankfein, Dimon, Greenberg , et. al.  This fellow was given the chance to forfeit 50% of his seizerd moneys, just like the afore mentioned pillars of the financial industy.  Now that's what I call "just-us".

Zero Point's picture

Re: "Nope, none"

Elegantly proven, by the insulting offer of half his hard earned money back.

Rakshas's picture

.......I'm guessing they will take half of his depost as a tax payment, after all a one time withdrawal of that size is nearing the top marginal rate........

 

....... even a mouse will try to bite you when its cornered....... sad daze for amoricans .........sad daze...... it ain't that pretty at all.....

Arnold's picture

All fast food joints deposit cash daily.

Something not right here.

Klemens's picture

Libyan citizen under the Gadaffi regime, did not get that much trubble then US citizen today.