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Money From Ensign's Parents: Gift Or Crime?

Senator's Lawyers Say Payments To Hamptons Were Gifts

POSTED: 8:48 pm PDT July 9, 2009
UPDATED: 10:37 pm PDT July 9, 2009

Surprising details unfolded Thursday involving the extra-marital affair of Sen. John Ensign. The senator said his parents gave the Hampton family money. But why is the $96,000 question.

In a much-publicized television interview seen across the Valley this week, Doug Hampton told Jon Ralston that Sen. John Ensign paid his wife, Cynthia, over $25,000 as a severance payment when the affair was over, and she stopped working for Ensign.

The senator called the money a gift, but some are calling it a criminal act.

Ensign said the money was given in $12,000 increments.

According to a statement released Thursday by Ensign's lawyers, Ensign said, “The payments were made as gifts, accepted as gifts and complied with tax rules governing gifts.”

It also said the gifts were consistent with a pattern of generosity by the Ensign family to the Hamptons and others.

The political group Citizens for Responsibility and Ethics in Washington filed a brief with the U.S. attorney general Thursday, saying the money was more than a gift.

“If it's a severance payment, then it might not be a violation of criminal law. But then you have this gift that looks basically like hush money paid to the Hamptons so they won't talk about the affair,” said Citizens for Responsibility and Ethics executive director Melanie Sloan.

FOX5 went to the home of Doug and Cynthia Hampton in Summerlin seeking comment but did not get an answer. There was no access given to FOX5 during an attempt to contact Ensign’s parents at their Spanish Trail home.

If this money was paid and not reported properly, Ensign could face criminal charges and possibly five years in jail. Some in the Valley said they think something fishy was going on.

“I’ve never heard of that kind of gift before, and it’s a strange situation for that to be happening at this time, and for this to be going on -- that would be a strange gift to give,” said resident Hank Sanders.

“I think now we need more people that we can look forward to leading us and someone we can believe in. Me, personally, I would never believe in that or in somebody doing that,” said resident Jason Eksterowicz.

So, there was an alleged severance payment of $25,000, and the gift money that was given was $12,000 for every member of the Hampton family. A gift of anything more than that needs to be reported to the IRS.

Ensign said Thursday he has no plans to resign.

The Citizens for Responsibility and Ethics in Washington want a federal grand jury investigation against Ensign.


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