It has been widely reported that in March 2015, the IRS seized $107,000 from North Carolina businessman Lyndon McLellan’s bank account because he had made cash deposits in “wrong” amounts. The IRS claimed that McLellan was “structuring” cash deposits under $10,000 to avoid being identified or suspected of money laundering, drug activity, or whatever. In reality, McLellan is a small businessman who operates a small gas station and catfish-sandwich shack and regularly deposits cash in his bank account. The money seized by the IRS constituted McLellan’s life savings.
Soon after the national media picked up this story of outrageous government abuse, the IRS caved, and returned the money. The agency quickly realized it could not survive the negative publicity regarding its lawless actions.
What has not been widely reported is that the IRS sent McLellan an email when McLellan hired the nonprofit law firm Institute for Justice to help him fight the government. The email warned McLellan not to seek publicity, and suggested that if McLellan went public with the outrageous story, the government would target him even more severely.
The government prosecutor’s email stated:
publicity about it doesn’t help. It just ratchets up feelings in the agency.
The message was clear: McLellan was being warned to keep his mouth shut.
The Institute For Justice’s description of the story is here.
