No. The problem here is multiple, closely spaced ALL CASH deposits that seem to be kept under $10,000.00 to avoid the reporting requirements.
Here’s the rub: had he not taken the advice he claims to have received from the bank, filled out the paper work and made the over $10k all cash deposits, he would have been investigated but ultimately found to be acquiring the money legitimately.
His “crime” was structuring the deposits. His co-conspirator in the crime seems to be the bank who gave him this advice. Of course, there is no written record because Mr. Oh says the advice was given orally. Maybe it did or maybe it didn’t. Sometimes, the accusation of an attempt to evade is true.
Total confiscation of the deposit seems unjust in this case. However, there has to be some penalty for attempting to evade the law even for an otherwise legitimate business owner.
The law does have a valid purpose in identifying attempts to avoid taxes or criminal money laundering attempts. Here is the IRS webpage on it: