On February 3^rd, Johnson was taken into arrested by the California Department of Insurance and taken to the Lynwood Jail, Los Angeles County’s women’s jail.  If convicted, is facing a maximum sentence of three years in prison.

Apparently, Ms. Johnson was allowed to post bail and was released. Johnson’s arraignment is scheduled for March 4th at the courthouse in downtown Los Angeles.

State Insurance Commissioner, Dave Jones said, “A bail bond agent who steals from clients in order to use these funds personally is committing a breach of fiduciary duty. Individuals who perpetrate such acts will be prosecuted to the fullest extent of the law.”

According to the Department of Insurance, Johnson executed 13 American Surety Co. bail bonds in Los Angeles County between February and April of 2009.

Johnson is being accused of collecting, from 12 of the 13 defendants that she supplied bail for, approximately $34,000 in gross premiums and also failed to remit $5,070 in net premiums. According to Jones, Johnson has kept those funds for her own personal use.

This investigation has also lead to revealing that Johnson also failed to return to court for another 11 bail bonds that totaled to $250,000 with a $3,250 premium.  Those bail bonds have not been located and Johnson has not accounted for them.

Jones said, “Based on past experience, bail bonds that have not been returned by bail agents could have been executed to release suspects from jail and issued to courts without reporting to the surety company, exposing the surety company to losses equal to the bond value, as well a loss of premium.”

Last May is when investigators first learned of the scheme. Johnson met with investigators the following month and surrendered her bail license. Johnson’s case is being prosecuted by the Public Integrity Division of the L.A. County District Attorney’s Office.

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.