Surprise! – now he is allegedly in trouble once more.  The Hacienda Heights area ex-cop-turned-bail-bondsman has plead not guilty to charges that he illegally solicited bail from inmates in local jails.  County District Attorney’s officials have accused Lee of no less than six felony counts.  The incidents that led to his arrest supposedly took place at the Van Nuys jail on or about July 27, 2008 and Feb. 10, 2009.

Ironically, Lee does not have to be bailed out of jail himself (good thing, because if he called around and bondsmen knew the charge, he might have a hard time getting out).  He has been released on his own recognizance and is due in Los Angeles Superior Court on Feb. 23 for a preliminary hearing, DA’s spokeswoman Shiara D vila-Morales confirmed.

“In essence, the defendant is accused of going to the Van Nuys jail and soliciting Korean-speaking arrestees to post their bail,” D vila-Morales elaborated. Edwin Lee has a current bail bond license, speaks fluent Korean and operates his business out of Koreatown, according to the article. It seems to me that the Department of Insurance ought to have that suspended by now.

The charges against the former LAPD police officer include two counts each of approaching prisoners to solicit bail, approaching prisoners to solicit bail inside a jail facility and failing to keep records of these solicitations.

Bail bond agents are legally forbidden to approach people to solicit bail. They can only do so if they have been contacted by the arrestee, a family member, friend or other interested party, first. It is also a separate felony to solicit bail in a jail facility, but since no records were kept of the alleged solicitations, Edwin Lee was not charged for this. 

Simply put, in the bail industry, a client must contact a bail agent. It is illegal for a bondsman to call and offer unrequested services. Calling a family member is perfectly legal if the defendant contacts the bail bondsman first and asks the bondsman to do so. 

If convicted, Lee could end up with a prison sentence that is about three years and eight months long. The case is now being investigated by the DA’s Justice System Integrity Division. (Good - get these unethical bondsmen out of our industry!)

Here’s how it works:  The inmate connected to the bail bond company offers to make three-way calls for other inmates willing to use their services.  Anyone who isn’t interested is intimidated until he changes his mind.  As reported by the Orange County Register, no less than eight witnesses, all of them arrestees at the jail, recently testified about this illegal practice to both the OC Sheriff’s department and the OC Bail Agents Association.

Each witness was interviewed by private investigator Bill Hunt, a former Sheriff’s Lieutenant currently running for Orange County Sheriff.  Hunt’s subsequent report alleges that some prisoners have bullied others regarding the company they should use for posting their bail.  Hunt also discovered that someone who had access to booking information was passing telephone numbers on to these same bail companies, who then in turn called the prisoners’ family members to pay up.

One woman, Michelle Johnson, said she received this type of call from a friend at the Orange County Jail, in October 2008.  Johnson heard a man in the background pressuring her friend to use a certain bail service.  The friend told her it was an officer.

Johnson paid a 10% premium of $2000 on a $20,000 bail amount to secure her friend’s release.  But a few days later, the same bond company phoned her and said the bail amount was actually $200,000 and that she owed them another $10,000.  Johnson threatened to take it up with the district attorney and the calls stopped.

Arturo Pacheco, an eye-witness who was arrested in August for driving on a suspended license, backed up Johnson’s statement with testimony of his own.  Pacheco claims deputies and jailers were aware of capping but they never stopped it during his incarceration, even though another inmate tied up the phone for this purpose.  Pacheco alleges that this inmate kept offering to hook his fellow arrestees up with two local bail agencies who would cut them deals below the legal 10% fee set up by California’s Department of Insurance.

Several law-abiding  OC bail bond companies contend the county isn’t doing enough to stop this illegal practice. Three of them have filed a federal racketeering lawsuit that accuses the sheriff’s department of allowing gangs and prisoners to illegally solicit customers.

Officials continue to downplay the bail capping scams, but evidence dating back to 2001 gives these charges credibility.  Back then, several bondsmen accused former Assistant Sheriff George Jaramillo of seeking their participation in a bail kickback scheme.  Jaramillo, who was in cahoots with a lawyer named Joseph Cavallo, pleaded no contest, but Cavallo was later convicted of paying for referrals from Xtreme Bail Bonds, along with two of that company’s employees.

In a recent statement, OC sheriff’s spokesman, John McDonald, insisted his department is taking the complaints seriously, but they have not been able to find any evidence of illegal solicitation.  Authorities continue to investigate the matter.

Our advice: keep at it. We hear about this and other bail bond scams every day from our clients.

Besides the fact that he’s been operating as a bondsman without a license, this “bogus bail bondsman” is allegedly a criminal himself; having previously been charged with numerous felonies which include, altering or falsifying government documents.  (A bail bondsman in California must be licensed by the California Department of Insurance. Additionally, convicted felons are not eligible to be bail bondsmen.)

Malone perpetrated this right in the jail, directly under the watch of the Sacramento County Sheriff’s Department. With regards to allowing Malone to advertise along side other bail bondsmen inside the jail, Sacramento Sheriff’s Captain Scott Jones stated, “Well, I think we were unwitting participants in it… I think if we’re getting paid and we’re providing a paid service, then we assume some of the duty for that.”  He also allegedly stated that the department doesn’t make a dime off of the ads. Captain Jones was in command during the time Malone’s ads were posted.

We have warned the public about the bail scams in the past. Fortunately, this guy is finally out of business. But according to court documents, several unfortunate prior clients turned victims, have lost out on thousands of dollars.

According to the Bristol Harold Currier, three people are charged with abduction, robbery, impersonating a law enforcement officer, conspiracy and sexual battery and a fourth is charged as an accessory after they posed as drug enforcement agents and pulled a woman from her car, hand-cuffed her, strip searched her and turned her over to Mullins. This is behavior that reputable bounty hunters wouldn’t engage in.

As we reported back in July, Mullins was previously in the spotlight with his son the magistrate. The pair were suspected in bail wrong-doing where the father was writing bonds for bail approved by the son.

Mullins is now under investigation by the Virginia Department of Criminal Justice Services, which licenses bail bondsmen. I, for one, hope they not only yank his license, but also throw the book at him criminally – jail and large fines would be good. I’m tired of unethical bondsmen in this industry’s spotlight.

these days, too many clients are asking for bail without the required collateral, such as a home or a car, diminishing bail bondsmen’s customer base. And not helping matters is a new policy by Marion County judges setting less expensive cash bonds for minor offenses…

Couple the economic situation with other “solutions” being offered in terms of bail. I hear talk of temporily lowering the bail schedule to allow more people in California to post bail. Huh? The bail schedule is set by judges based on public safety and flight risk. Lower it?  

Add to this jail overcrowding causing manditory releases, out of control pre-trial release (known as release on ”own recognizance” which is intended for the indigent) and so-called “cash bail” on your credit card. 

“We wanted to make sure we are not setting our bonds so high that we are overcrowding our jail,” said Marion Superior Court Judge Robert Altice Jr. of Indiana. How about public safety?

Last December, I spoke with Tony Castro of the Los Angeles Daily News. He asked me how the bail business has changed in the downturned economy. My answer today would be much the same as then: people still need bail bonds. However, the willingness to pay $1000 or $5000 is definately restricted. In better economic times, people had jobs that they needed to go to, so they would bail out. In better economic times, spending money is easier.

All that said, is the bail industry going under? Well, I can only speak for this company and say, not yet! Treading water at times, maybe, but not going under. As an industry, however, bail agents need to stay aware of the climate. Bail is a right and bondsmen help maintain the system that is free to the taxpayers.

However, in an attempt to uncover what some are saying was a media leak from the Los Angeles Sheriff’s Department, authorities have discovered two calls were made to Harvey Levin of TMZ the exact day of Gibson’s arrest. 

One of the arresting Sheriff Deputies, James Mee stated he did nothing wrong and declined to comment any further. But phone records from his home indicate otherwise. It was found that two phone calls were made to TMZ the same day. Upon further investigation it was found there were 8 phone calls from made Levin to Deputy Mee’s home two days after the arrest of Gibson.

Los Angeles prosecutors declined to file any criminal charges against Mee, saying they could not conclude or identify who made the calls or who leaked certain parts about Mel Gibson’s arrest.

Later, TMZ posted excerpts from Mee’s original report on its website, giving details of Gibson’s tirade, outbursts and threats.

A probe was launched and search warrant’s were served by the Sheriff’s Department, however, no evidence was found to be incriminating enough to prove any payments were made to Sheriff Mee. Further, none of his home equipment, e.g., fax or email was used to deliver the original arrest report.

While the Mel Gibson media leak mystery continues, bail bondsmen have believed for years that insiders in the Los Angeles jail system have leaked, sold or otherwise tipped off unethical bondsmen about arrests and inmate information for higher bail amounts. We hope that the City Attorney, District Attorney and Federal Officials might be as diligent for a lesser known, but potentially more egregious abuse of power.

In the first address to Los Angeles bail bondsmen since his election to City Attorney, Carmen “Nuch” Trutanich told a group assembled Sunday evening that the office he inherrited was “broken“. He added, “I was elected to clean up the office and I will.”

Trutanich gave only a brief prelude to what bondsmen would hear more about in the days to come at the Annual Meeting of the California Bail Agents Association (CBAA): “We are arresting bail agents for capping,” Trutanich told us.

Interestingly, he gave no real details to something of great importance to the California bail industry. Unethical bail agents operating illegally is a serious problem to those of us who run a clean business. I, for one, was very interested in the details.

He went on to mention what he would talk more about in depth both at the conference and in the media: medical marijuana clinics.

[youtube]http://www.youtube.com/watch?v=7AhNb75N8V4[/youtube]

Bail bondsmen are believed to be lying to the jailers, indicating they are their at the request of the inmate or inmate’s family for bailing the inmates out. But instead are just initially meeting the inmates and are there to solicit bail business from them. Once there, the bail bondsmen are handing out marketing materials which are then dispersed within the jail itself. This entire scenario is actually illegal in California jails, as well as Florida jails. Lake County Sheriff’s are taking the necessary precautions for making sure the local bail bondsmen are abiding by the law.

Here at Greg Rynerson Bail Bonds we take all necessary steps to ensure we follow the law regarding soliciting at the jails we visit. Our bail agents carry no marketing materials with them. We wear normal professional attire without any company insignias. Why would anyone want to engage with a bondsman who is acting illegally? Don’t they already have enough trouble?

So, without further fan fare, here are the necessary steps to becoming a licenced bail bondsman in California:

1. You must have lived in California for least 2 years and be prepared to provide proof.
2. You must be 18 years old or older.
3. You need a clean record. Kind of an obvious one since you are working within the legal system, but many people don’t realize that to be a bail bondsman, you must have no felony convictions on your record. (Unlike the NFL which employs many people without clean records.)
4. The California Department of Insurance regulates the bail industry. For someone interested in becoming a bail bondsman, you will spend a bit of time with this department. At the DOI, as it’s known, you will find all the necessary forms for becoming a bail agent. There’s quite a list of fees, forms, and applications, so be prepared to put a side a weekend to get through everything.
5. You must also get 12 hours of classroom study, called Pre Licensing Education. Usually available on weekends. Make sure they are approved providers.
6. After taking the class there is an exam that must be passed (that’s next up for me). Find an actual examination site through the DOI’s website. Online examinations are also available, fill out form Individual Application, Form LIC 441-9 and provide your email address and the DOI will email you an online examination schedule for you to choose from.
7. With the test passed, fingerprints are done (for another fee, of course), and all that’s left is finding a surety – an insurance company to underwrite your bonds. Then, filing the necessary applications and paying the fees to the Department of Insurance.

A final word about starting a bail bonds business: Writing bail is risky and at times can get very complicated. Sure, some of the smaller, $10K bonds, are quick and easy but you will learn in time that almost every bail bond is different. Obtaining the knowledge to make the right decisions can only come from working in the industry. It only takes one or two mistakes before you find yourself liable for a bail you shouldn’t have written and potentially out of business. So make sure you are mentored in to the bail bonds industry before you decide to go out on your own.

Good Luck!

Last month, we reported on one unethical bondsman and his magistrate son in Virginia who teamed up to allow the bondsman to write additional bail bonds. Now, a Virginia State Police Investigator has given the case to  the county’s Commonwealth Attorney Dennis Godfrey. Godfrey, noting that he works regularly with the office in question, plans to pass the case to an outside prosecutor.

Hats off, again, to investigative reporter Michael Owens with the Bristol Herald Courier for uncovering this bail fraud.