NE Iowa Widow Charged, Money Seized

IOWA CITY, Iowa (AP) — An Iowa widow is charged with a crime and had nearly $19,000 seized from her bank after depositing her late husband's legally earned money in a way that evaded federal reporting requirements.

Janet Malone of Dubuque faced civil and criminal proceedings under a law intended to help investigators track large sums of cash tied to criminal activity such as drug trafficking and terrorism. Some members of Congress and libertarians have complained that the IRS and prosecutors are unfairly using the law to target ordinary people who deposit lawfully obtained money in increments below $10,000.

Malone allegedly made several deposits under $10,000 when transferring money left by her husband, who'd been warned against the practice.

One libertarian group is criticizing the government for prosecuting Malone since her money was legally obtained.