AML / CFT: De Lay sentenced

Perhaps the most surprising thing about the sentence is that De Lay, one of the most powerful men in American politics for a quarter of a century has been jailed at all.

In truth, anything less than an outrageous fine would have been as a midge-bite to the wealthy Texan. And being told he had to stay at home isn't much of a punishment to a man who can take several hours to drive around his property.

De Lay claims to have spent USD10 million on legal fees and is still in debt to his lawyers; he also claims to be short of money and relying on friends to help him pay his bills. Frankly, no one is really taken in by that claim for De Lay, as one of the most connected people in Washington, would be unique if he had retired from politics a poor man.

But he was also convicted of money laundering, as principal not conspirator. What is surprising is that on that offence, De Lay was sentenced to ten years probation. He has not been fined on either charge.

Even so, three years in a state prison, even an open prison, is not just a shock to De Lay, it's a shock to the entire political and business establishment.

But De Lay is not in jail despite the sentence. He was released the same day on a bail bond of only USD10,000, pending an appeal.

De Lay's offence was to arrange for out of state political funding to be channelled through a series of entities to disguise its origins. Although the money was originally untainted, it became illegal by the process through which it was put. In fact, De Lay may be the first person who has been convicted of converting clean money to dirty money and then laundering it.