Criminals Demand Kickbacks from Bail Bondsman: Attorney
Alleged OC kickback scheme lands jails with a lawsuit
Thursday, Jan 7, 2010 | Updated 3:00 PM PDT
AP
No pay, no play says a lawyer. Three local bail bond companies sued Orange County today, alleging the Sheriff's Department has failed to stop a kickback scheme in the jails that diverts business to companies willing to play along.
"The jails are being run by criminal gangs," said attorney Richard Herman, who filed the federal lawsuit on behalf of Don's Bail Bonds, Bob Drake Bail Bonds and Orange County Bail Bonds.
"(Sheriff's officials) know what's going on. We told them when we filed a claim against them months ago," he alleged. "We said at that time, `This is your exposure -- hundreds of millions of dollars if you don't clean things up,' and they didn't. They're just not paying attention to the problem, which is shocking, but this is Orange County."
County spokesman Howard Sutter declined comment.
"We're not aware of the lawsuit, but our practice is to not comment on pending litigation," Sutter said. "This is the first I've heard of it."
According to Herman, gangs have a leader, or "shot-caller," in every unit who's allowed by jail guards to run their area.
"Someone comes in to get a bond, and that shot-caller sends them to their preferred bail bondsman, and they kick back a percentage to the shot- caller," Herman said.
"They are financing criminal gang activity in the jails. It's amazing," the attorney said.
"You couldn't make up this story. It's beyond imagination, and you can tell it's true because, in fact, the bail bondsmen who are doing things honestly have seen a 90 percent reduction in their business."
The lawsuit alleges the county is violating the Racketeer Influenced and Corrupt Organizations Act, and also alleges mail and wire fraud.
The bail bond companies are asking for damages for past, present and future losses, which amounts to about $100 million and, under RICO, triples to $300 million, according to Herman.
