Dubuque widow to plead guilty in controversial fraud case - KWWL - Eastern Iowa Breaking News, Weather, Closings

Dubuque widow to plead guilty in controversial fraud case

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CEDAR RAPIDS (AP) -

A plea agreement calls for an Iowa widow to admit Tuesday that she deposited her late husband's legally earned money in a way that evaded federal reporting requirements.

The prosecution of 68-year-old Janet Malone has been criticized as an example of the IRS misusing a law meant to track cash tied to criminal activity.

The Dubuque woman is scheduled to appear in federal court Tuesday in Cedar Rapids.

Under a plea agreement filed last week, Malone has agreed to plead guilty to willfully violating a law that prohibits splitting up cash deposits in increments under $10,000. The misdemeanor carries up to one year in jail.

Prosecutors say Malone deposited $89,100 in increments from $5,800 to $9,000 in 2012. The money was bonuses and gambling earnings left by her late husband.

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