Legislating Your Future

Let’s imagine for a moment that Exxon passed a law saying that everyone in the State of Missouri must buy only Exxon gas. I suppose if you wanted to continue to go to work and pay your bills, you would buy Exxon gas. What would happen to all of the other gasoline companies? What would happen to the price of gas? What would happen to the Exxon profit margins? How well do you think Exxon would pay its stockholders and company executives? You would say that is absurd, right? The state legislature would have no business granting a company the exclusive rights to sell a product or service.

Now, let’s apply this situation to the Missouri Professional Bail Bond Association’s (MPBBA) bail bills, HB2454 and SB1247. The bail association wants legislative authority to nominate members to serve on their newly created bail bond board and they want the right to exclusively provide the training of all bail and recovery agents in the state. The association also wants to double the amount of training you will be forced to take from them.

What is going to happen to the other training providers in the state? Well, they will be out of business. What will happen to the profit margins of the association? Of course they will soar because if you want to be nominated to serve on the board, you’d better become a member. If you want to continue to work, you will have to take their training. The bail association will have an influx of money to pay its directors and/or hire staff. And what about paying its executives and stock holders? Unlike most trade associations, MPBBA is a for-profit corporation. According to MPBBA’s filings at the Missouri Secretary of State's Office , there are 30,000 shares of stock available to be issued, or maybe they have already issued the stock, who knows?

Some will say that the bail bond bills do not specifically reference MPBBA, but only say “a state association”. The bail association does not have to identify itself by name to reap the harvest of legislated status. Take a look at this law regarding the training of school board members by “a state-wide association” for school boards. The law did not name a specific school board association. It didn’t have to in order for the Missouri School Boards Association (MSBA) to be the sole association for school boards. And having a law requiring the existence of a state association certainly sealed its future sustainability. Plus, this state-required training became a new revenue stream for the association.

When the MPBBA sponsored legislation in 2005 to force bail and recovery agents to join “a state-wide association,” I testified before the Missouri Senate opposing this language. Forced association was a bad idea and thankfully the bill failed. This is a back-door approach to make you financially support the agenda of the association, whether or not you personally support their agenda. The association wants to buy instant credibility and wealth by passing legislation which requires bail agents to financially support the work of the association. It’s a bad idea.

1. If you don't want a new $10 tax on each bond you write….
2. If you do not want the association to nominate bail bond board members who will oversee your business by holding the power for the "licensing, educating, supervising, and disciplining of all general bail bond agents, bail bond agents, and surety recovery agents in this state"…..
3. If you do not want the authority of the Department of Insurance transferred to this newly created bail bond board…..
4. If you don't want the association to be the only provider of all bail and recovery training ...
5. If you do not want a law requiring the existence of a bail association......

Please sign and return this petition. For those who have already done so, many thanks for your support.

DIFP Adds New Website Features

The Department of Insurance (DIFP) has added several new useful features to its site.

List of agents/companies with unsatisfied judgments

General Agents List-Not subject to discipline or unsatisfied judgments

List of all general, bail, and surety recovery agents

The lists of agents contains the names and license numbers.

Columbia Tribune Profiles Bondsman

Crime reporter Derek Kravitz of the Columbia Daily Tribune interviewed general agent George Dodge. The report details George's work in the bail bond industry, other business interests, and family life.

IRS Audit Guide For Bail Industry

I found an interesting article on on UncleFed's website. It is reported to be the IRS technique guide for the bail industry. It is designed to be used when auditing a bail bond agent and/or company. The guide educates auditors on common terms used in the industry, the way funds change hands, and common pitfalls in record-keeping.

Bail Bond Power Grab

Bail Association Seeks to Strip Oversight by DIFP

The Missouri Professional Bail Bond Association, Inc., (MPBBA) is at it again this year. They have two bills floating around the Capitol this session, SB1247 and HB2454. Like past years, the association would like to pass legislation that will feed revenues to the association and require its continued existence. This year, the association is promoting a bail bond board. The association will nominate members to serve on the board. The association will have exclusive rights to provide initial and continuing education to bail and recovery agents, so your choice of education providers will be gone.

This is what the changes would mean to you and your bail bond business:

The language strips all authority from the Department of Insurance (DIFP) and transfers it to the newly created bail bond board.

There will be a $10 tax on every bond you write in the State of Missouri. This tax will be collected every time you write a bond. This tax will be distributed to pay the cost of collecting the tax and to pay the costs of the new board. There has been no published cost analysis to verify if this tax will even cover the costs for paying the board members, executive, investigative, and support staff, as well as other overhead of maintaining offices. (In Arkansas, the bail bond board tax is currently $70 with every level of government getting a cut of the tax.)

The association (there can only be one state-sanctioned association) will nominate 3 bail bond/general agents to serve on the board. A quorum to conduct business is 4 board members.

The board will be responsible for licensing, education, discipline, and rule-making for all bail and recovery agents. In other words, your competitors will be overseeing your business. There is no term-limit on the office of board member.

The association hopes you will overlook this power grab by telling you that this bill offers you a six month remission on judgments. Read the whole bill, not just the highlights published in the association newsletter.

I urge you to get involved this year. Read the bill and think about the consequences to your business. If you disagree with the philosophy of the bail association running your business through a board, I urge you to sign and return this petition. Let your voice be heard. Let those who represent you at the Capitol know that this is a flawed idea for the bail industry.

Analysis of Bail Bond Bills

Bart Cooper submitted the following analysis of SB1247 and HB2454. He owns Freedom Bonding, LLC, and Bart Cooper Bail Bonds in the Kansas City area. You can visit his website here.

Issues/concerns surrounding establishment of a “Professional Bail Bonds Board”

Overview: The bill strips the DIFP of authority to license, supervise, discipline and educate bail and recovery agents. Instead, such powers shall vest in a Professional Bail Bonds Board consisting of nine members (four general agents, two bail agents, one law enforcement officer, one circuit clerk and one public member). Members of the Board shall be appointed by the Governor.

Functional Concerns:

1) The DIFP structure for licensing, supervision, discipline & education is well-planned and substantial. The legislation sets forth no plans regarding infrastructure necessary to achieve the stated purposes. Apparently, legislative proponents assume that members of the board will possess the requisite expertise to create and maintain such an infrastructure.
2) No analysis exists regarding the financial solvency of the Board and its employees. The Board will be funded by imposing a ten dollar per bond tax on each bond written by a licensed agent. Notwithstanding the procedural difficulties in imposing and collecting such a fee, no evidence exists establishing the sufficiency of said fee. A review of other jurisdictions reveals a substantially higher fee per bond.
3) No ability to issue cease and desist orders exists.
4) No mechanism exists for policing the Board. The proposed legislation does not provide a solution should Board members act inappropriately. While the Governor may remove a Board member for just cause, no standards for just cause exist.
5) Discipline by the Board would likely be arbitrary and capricious. No standards exist for discipline. Since Board members would possess an economic incentive to discipline (eliminate) their competition, the expected result would be just that.
6) No mechanism exists for auditing Board members’ expenses.
7) While all “regular” meetings shall be open to the public, the legislation does not delineate what constitutes a regular meeting or what must be discussed at these meetings.
8) The bill requires attempted notice within 48 hours of a forfeiture being listed with the department. The language is problematic since there is no requirement that the department (assumed to be DIFP) notify the board. Additionally, actual notice is not required, only an attempt to notify must be made.
9) The bill fails to expand the 15-year felony clause to prohibit all felons from entering the bail industry.

Philosophical Concerns:

Individuals with an economic interest in reducing competition will be placed in the position to do just that. Nearly all will agree that the DIFP is a neutral party who gains no economic advantage in enforcing bail laws. Such transparency is vital to the legitimacy of enforcement. Most members of the Board, however, will benefit in seeing their competitors disciplined. Less bond agents means more bonds for the agents remaining in the industry. Thus, a clear economic benefit and an equally clear conflict of interest is present.

If you disagree with transferring the authority of the DIFP to a newly created bail bond board, please join us in making your opinion known. Download this petition, sign it and return it to the address listed.

Telephone Area Code/Prefix Locator

Here's a cool tool. This website will tell you the location and type of service for any telephone area code plus prefix. The service is free.

DIFP Licensing Actions

The DIFP has published the following licensing actions on its website:

The Administrative Hearing Commission has dismissed the complaint filed against the DIFP by John Garrett. In October 2007, the department refused to renew Garrett’s bail bond license. The DIFP’s order stated the refusal was issued because Garrett pled guilty to unlawful use of a weapon in 1996. Garrett received a SIS in the case and did not disclose the plea on his renewal application. Garrett then filed a complaint with the AHC asking for a hearing on the matter. However, he did not attend the hearing which was scheduled last February. The DIFP moved for a dismissal, which was granted by the hearing official at the AHC.

The AHC denied the DIFP’s motion to dismiss the complaint filed by Edward Loughary against the DIFP. The department refused to renew Loughary’s license, citing he had been convicted of mail fraud in US District Court in 1993. The order states that Loughary is disqualified for licensure because of the plea and for fraud and deception on his 2003 initial application for licensure. Loughary answered “yes” to the question concerning any felony convictions on his 2007 renewal application. But according to the Department, Loughary answered “no” to a similar question on his 2003 application. Loughary then filed a complaint with the AHC asking for a hearing on the matter. The DIFP filed a motion for dismissal claiming that Loughary’s petition did not set forth facts showing that he was entitled to be licensed. The AHC denied the department’s motion and the case is set to be heard on April 22nd.

The DIFP has filed a notice of dismissal against general agent Cynthia Saulmon and Afford Able Bail Bonds, Inc. The department’s dismissal states that it has been unable to locate and serve notice to Saulmon and/or her company. The DIFP's original complaint alleged that Saulmon committed fraud, deception, or misrepresentation by filing affidavits with the local court claiming real property they allege she did not own. According to the complaint, Saulmon had an investor who executed two quit claim deeds to Saulmon’s company for property he legally owned. Those deeds were recorded. On the same day, Saulmon executed two quit claim deeds back to the investor, but those deeds were not recorded. The Department alleged that when Saulmon executed the un-recorded quit claim deeds back to the investor, she no longer owned the properties. The DIFP alleged that the counties of Clay and Jackson relied on the properties which were listed in her general affidavit of qualification with the courts. The DIFP also alleged that Saulmon is subject to discipline for writing a bad check for license renewal to the State of Kansas. The DIFP asserted that Saulmon is also subject to discipline in Missouri because she was disciplined in Kansas under a similar statute and her license was revoked. The allegations were dismissed when the DIFP filed the notice of dismissal. Saulmon's license is listed as inactive on the DIFP's website.

Judgment List 3/7/2008

The bail bond unsatisfied judgment list is compiled by the DIFP and the Missouri Office of State Courts Administrator. The following companies appear on the list distributed on March 7th. The list is distributed to local courts via electronic means.

1) April Reeves, General Agent, Belton, MO-9 judgments totaling $10,000
2) L&C Investment Group, president-Douglas Cheatham of Blue Springs, MO, -no longer licensed-7 judgments totaling $105,800
3) Richard Kentner, General Agent, Lamar, MO- 1 judgment totaling $200
4) Regina Muwwakkil, General Agent, Kansas City, MO-1 judgment totaling $1,500

There are no agents, general agents, or companies reported with pending disciplinary action.

VA-Slain Bondsman was Alone and Unarmed

VIRGINIA-The Richmond Times-Democrat reports that bondsman James Woolfolk was alone and unarmed when he was killed last Thursday morning while attempting to apprehend fugitive James Carr. Woolfolk was found inside a residence with gunshot wounds to the back, head, and neck. He was shot from behind.

The State of Virginia requires a firearms endorsement in order to carry a weapon while performing bail bond or recovery work. Woolfolk, who has been licensed since 2007, had no endorsement.

Prosecutors say that Carr has admitted to the shooting. Carr has been placed in protective custody in an undisclosed facility.

Among other survivors, Woolfolk leaves behind a 14-year old daughter. Funeral services are scheduled for Tuesday at 1 pm.

VA-Bondsman Killed in Overnight Shooting

VIRGINIA- Bondsman James Woolfolk, age 38, was killed in an overnight shooting in South Richmond, VA. According to press reports, the bondsman was attempting to locate and apprehend fugitive James Carr. Police responded to a shots fired call and found Woolfolk with a gun-shot wound. He was pronounced dead at the scene. Police have taken James Carr into custody after a stand-off ended this morning . He was wanted for failing to appear in court and outstanding warrants for drug charges, trespassing, and obstruction of justice.

Our condolences to the friends and family of James Woolfolk.

AHC Issues Decision on Remand

The Administrative Hearing Commission has issued a decision on remand in the case of licensed bondsman Donald Christian. The case began when the DIFP filed a complaint against Christian in 2006 because Christian had been convicted of a felony drug charge 1998. The AHC ruled against the department saying that the DIFP used statutes in effect in 2006 in composing the complaint, and those statutes could not be used to discipline Christian because they were not in effect at the time Christian committed the offenses. The DIFP filed for judicial review of the decision in Cole County Circuit Court. The court concluded that retrospective application of the statutes did not violate any of Christian’s rights and that the licensing agency has a vital interest in safeguarding the public’s health and welfare. The court ruled that the Director had established cause to discipline the licensee and ordered the AHC to reverse its findings and make a decision consistent with the court’s judgment. The AHC then issued a decision consistent with the court’s finding and ruled that retrospective application of the statutes is permissible and the laws in effect at the time of application or renewal control the qualification of the applicant.

Previous Coverage
Court Reverses AHC in Christian Case
DIFP Files Petition for Review in Circuit Court
AHC Rules No Cause for Discipline in Christian Case

Services Announced for Bondsman

Bondsman Daryl L. Luecke., 53, of Westphalia, Missouri, died Tuesday, February 26, 2008. Services will be held today with a Mass of Christian Burial at 11:00 a.m at the St. Joseph's Catholic Church in Westphalia. In addition to writing bonds, Daryl served his community by being the Osage County Commissioner for 10 years. He also served as an Osage-Gasconade Health Department board member, Secretary for Meramec Regional Planning Commission, a substitute teacher at Fatima and area schools, had county government budget experience, a Missouri C.N.A. and C.M.T., and a care provider to the elderly.

He has been licensed since 2005 and worked under the authority of Dave Strassner.

PA-Bondsman Gets Probation in Shooting

PENNSYLVANIA-The Lancaster Intelligencer Journal reports that a bail bondsman who shot a fugitive in Lancaster was spared a prison sentence. Bondsman Dale Kauffman was sentenced to 5 years probation and ordered to stop working as a bail bondsman. Kauffman shot Moises Torres in 2006, as Torres tried to flee a home while Kauffman and another bail bondsman were in the home trying to detain him. Judge Louis J. Farina said a "deficiency in our system" allows bail bondsmen to be placed in difficult situations with dangerous criminals. "(Kauffman) was never trained," Farina said. "This points out a deficiency in our system, so I have some sympathy for your plight. We need to send a message to other bondsmen," Farina continued. "You are the first. I'm not aware of any case like this. And I want you to be the last." Kauffman pleaded guilty in December to aggravated assault and reckless endangerment. Torres was unarmed when he ran from the bail bondsmen, court documents say. Kauffman fired one shot from his 40-caliber handgun, striking Torres' right leg. The bullet shattered Torres' tibia, requiring him to undergo surgery and skin grafts, court documents say.

Defense attorney Herbert M. Crystle told Farina that Torres elbowed Kauffman in the throat before fleeing the home. Kauffman is a "good man," Crystle said, "who made a bad decision in the heat of the moment."

Kauffman spoke briefly before he was sentenced. "My intent was never to hurt anybody — but to bring him in," Kauffman told Farina. "I can't (change) what did happen. I'm truly sorry I injured Mr. Torres." Crystle told Farina that Kauffman has continued to work as a bail bondsman but no longer carries a gun.

Farina acknowledged writing bail was a source of income for Kauffman, but ordered him to cease practicing. "I have serious reservations about whether a convicted felon should be serving bail pieces," Farina said. Apprehending and detaining fugitives while unarmed could place a bondsman at risk, the judge said. "We allow you to be armed when you arrest dangerous people," he said. "There are rules people in your business need to be aware of and trained for. It doesn't excuse you — but it does mitigate.” “You are a good man. But, you made a very bad mistake here and seriously hurt somebody," Farina told Kauffman. "The system doesn't work when it lets people do what you did."

Services for STL Officer

Please keep the family of Lt. Robert Cooney in your thoughts and prayers. Rob was a 20-year veteran of the St. Louis Police Department and died from a fall at his home this week. Services were held yesterday.

Rob worked a dangerous job doing high-risk search warrants and commanded the department's Mobile Reserve, K-9 and Hostage Rescue units. He received three chief's commendations and two meritorious service citations for valor during his career with the police department.

He leaves behind a wife, two young children, brothers, a sister, parents, and many other grieving friends and family. I grew up with Rob. He led an exemplary life both on and off-duty. We will miss him.

Information on memorial fund for the Cooney children
Fox News coverage

IN-Bondsman Found Guilty of Confinement

The Goshen News, of Goshen, Indiana, reports that a six-member jury returned a guilty verdict in a case of a Goshen bondsman, who was accused of confining a driver and her passenger in a traffic stop. Bart Dewald was convicted of criminal confinement, a Class D felony. Dewald was searching for a woman who was out on a bond through his agency.

The Goshen News reported that bondsman Constantine Nichols was driving a white sport utility vehicle and passed two women in a minivan, then slammed on the brakes, forcing the minivan driver to stop suddenly, too. Then Dewald drove up behind the van in a red pickup truck. The bondsmen went to the front doors of the minivan and spoke to the two women inside, asking if they knew the whereabouts of the woman the pair were searching for.

The vehicle was blocked and the two men were at either front door, blocking the women from opening their doors. But the women did not know answers to the questions posed by the bondsmen. They were stopped for five to 10 minutes, the jury was told.

One of the women testified in the trial that she felt they were free to go at any time. The other woman testified that she contacted Goshen police after the incident and was told she should file a complaint with the state Department of Insurance. The criminal case was brought against the two bondsmen after an investigation by an officer in the county prosecutor’s office.

Judge George Biddlecome set sentencing in the case next month. Dewald faces a prison term of up to three years for conviction of a Class D felony. He was allowed to remain free on bond until the sentencing hearing.

PBUS Winter Conference 2008

PBUS (Professional Bail Agents of the United States) is holding its winter conference in Las Vegas on February 18-21 at the Luxor Hotel and Casino. Special speakers this year include news anchor Rita Cosby speaking on the power of the media and Congressman Robert Wexler. Also on the conference schedule is a presentation on national standards for apprehension, liability, and surrender. The conference also has several break-out sessions scheduled including the future of bail, special concerns of women in the industry, GPS monitoring, and a town hall discussion. There will be a vendor’s exhibit hall open throughout the conference.

Jackson's Bail License Revoked

Virgil Lee Jackson’s career in the bail industry has come to an end. The DIFP and Jackson entered into a consent agreement to revoke Jackson’s license. Late in 2005, the department filed a complaint against Jackson after he was arrested for conspiring to murder his competitor, Jerry Cox. In November 2007, Jackson was sentenced to 10 years in a federal prison after he entered a plea of guilty to the murder for hire charge. Jackson signed the consent agreement which states that he has permanently surrendered his license. The DIFP agreed to dismiss the disciplinary complaint pending before the Administrative Hearing Commission.

My previous Posts
Lee Jackson held on federal charges 4/1/2006
Dotson Arrested/New Charges for Jackson 6/2/2006
Dotson/Jackson trial postponed 6/8/2006
Arraignment 6/13/2006
Trial postponed again 10/28/2006
Dotson Freed on Bond 11/15/2006
Jackson Accused of Another Murder Plot 11/22/2006
January Trial Date Postponed 1/22/2007
March Date Postponed 3/19/2007
Jackson Pleads Guilty 8/13/2007
Dotson Faces New charges 8/27/2007
Jackson Sentenced 11/1/2007

*Accused co-conspirator Glen Dostson is scheduled to go to jury trial on March 3rd. Dotson's bail license expired last November. There are no published disciplinary actions or complaints against Dotson's license at this time.

Charges Against Avett Dismissed

All charges against Randall Avett in St. Louis County have been dismissed. On August 10th, Avett was charged with forcible rape, forcible sodomy, unlawful use of a weapon, and felonious restraint. Avett had been held in the St. Louis County jail with a $150,000 cash only bond. All charges were dismissed last Thursday.

Avett still faces charges in Jefferson County related to a fugitive recovery incident. Jefferson County Prosecutor’s office filed charges against three Missouri licensed bail bond agents and two other men. According to casenet, charges were filed against bondsmen Steven Morgan, Randall Avett, and Thaddeus Bibb. The prosecutor’s office charged the men with burglary, armed criminal action, felonious restraint, and property damage. The two unlicensed men, Brandon Morgan and Rudulph Whiston, were also charged on related offenses. The prosecutor alleges the men forced entry at a residence where they believed the fugitive to be staying. The fugitive was not at the residence and the residents denied knowing the suspect. The police were summoned by the residents and charges resulted three months after the incident.

Avett's bail bond license expired while he was in St. Louis County custody. As of today, his license has not been renewed. According to the DIFP website, there are no disciplinary complaints or actions against Avett's license.

Previous coverage
KSDK on St. Louis County Case
KSDK on Jeff County Case
Previous Post on St. Louis County Case
Previous Post on Jeff County Case

Boone County Bond Making Headlines Again

A $750,000 bond posted in Boone County for defendant Kristopher Prince, who is charged with 2nd degree murder, is making headlines again in the Columbia Daily Tribune. In September, McBee Bail Bonds posted the bond for Prince, who had been in custody for five months. The day after Prince made bond the prosecutor alleged that he had jailhouse recordings indicating that Prince may attack witnesses to the shooting. Additionally, Boone County Prosecutor Dan Knight said that after learning of Prince’s release from jail, he called the circuit clerk’s office and learned McBee’s agency didn’t have enough collateral to insure the $750,000 bond, with the family assets listed as $657,000. Prince’s bond was increased to $1,000,000 cash only and a capias warrant was issued. Prince was re-arrested the same day.

The Prince family and McBee Bail Bonds are now disputing the bail bonding agreement after Prince was re-arrested and his bond was raised to $1 million cash-only. The family filed a consumer complaint with the DIFP. The Tribune reported that the DIFP is investigating Arlie Nole Sr.’s bail bonding license and his work on the Prince case. The bond was posted by Stacy Nole, a 36-year-old bail bonding agent for McBee Bail Bonds. But the Prince family told the Tribune that they actually worked with Nole’s ex-husband, Arlie D. Nole Sr. Arlie Nole was not licensed at the time of the transaction. His bail license expired in January 2007 and was not renewed until October. Arlie Nole denies his involvement in the transaction. According to the Tribune, an investigative hearing will be conducted next Wednesday.

Knight also said that in light of the Prince bond, which he believes to be the largest ever posted in the county, his office would now be making more recommendations for cash-only bonds when dealing with suspects accused of violent crimes.

The 13th Judicial Circuit has since issued an order regarding the posting of bonds: "The Circuit Clerk should be contacted before a surety bond in excess of $250,000 is accepted. The Court may require additional collateral on any bond when it appears from the information available to the Court that the surety is without sufficient assets to cover the bond requested and all outstanding bonds for which the surety is liable."

Columbia Tribune Coverage
Murder Case Subject of Bail Squabble 1/24/2008
Murder Case Leads to New Bond Rules 2/6/2008

Previous Posts
High Bond Causes Dispute 1/25/2008
13th Circuit Issues Order on Bonds 1/6/2008

Bondsman Charged with Bribery

General bondsman Gary Darby, of Warrenton, has been arrested in Warren County with a felony charge of bribing a public servant in violation of RSMO 576.010. The probable cause statement alleges that Darby attempted to bribe a corrections officer by offering the county official money while conducting bail bond business at the jail. A court date has been set for February 25th.

Darby has been a general agent since May 2007. He has also held a bail bond agent license since 2003. Darby has 10 agents working under his authority.

Times Article Examines US Bail System

The New York Times published an article about bail system in the US. It is part of a series which also examines juveniles serving life sentences and accomplices in murders serving as much time as the murderer. The article examines the uniqueness of the US system and evaluates how the system works.

Be sure to view this graphic from the US Department of Justice showing that surety release results in fewer failure to appears and also fewer fugitives remain at large as compared to other forms of release.

USDOJ-full report

Licenses Revoked in Residency Case

The DIFP has ordered license revocation for Ulis Vickers, Kristin Vickers, and U&K Investments, Inc. The department adopted the ruling of the AHC, who ruled that the Vickers and their company had committed misrepresentation to the DIFP when they claimed on their licensing applications to be residents of Missouri when they were residents of Kansas.

Timeline of the case:

DIFP files Complaint with AHC-January 5, 2007
AHC Hearing Held 8/13/2007
AHC Orders Cause to Discipline 10/3/2007
DIFP Disciplinary Hearing 1/16/2008
DIFP Orders Revocation 1/17/2008

DIFP Issues Advisory on Fictitious Names

On January 18th, the Consumer Affairs Division of the DIFP issued an advisory regarding the use of fictitious names and the filing of monthly affidavits.

The advisory states that all general agents must submit a voided copy of the power of attorney used in executing bail bonds by February 28th. The advisory states that paperwork submitted to the courts, law enforcement or the DIFP shall not contain a DBA, marketing name, or fictitious name, and should only include the name of the licensee. (emphasis by DIFP) The advisory states that there have been a number of issues regarding the use of fictitious names on power of attorney forms used to execute bail bonds. The DIFP advises that any licensing or renewal application containing a fictitious name will be returned for correction, thus “hampering the already time-consuming application process.”

The department advises that each general agent must file an affidavit between the first and tenth of each month informing the DIFP whether or not there are any outstanding judgments against the licensee.

The DIFP attached bulletin 06-03, which was issued in 2006, concerning the use of fictitious names.

Post on fictitious names 10/11/2006

High Bond In Boone County Causes Dispute

Yesterday, The Columbia Daily Tribune published a report regarding a $750,000 bond posted by an agent of Harold McBee of Chillicothe. The Tribune reports that Kristopher Prince, 18, was released from the Boone County Jail after posting the bond with McBee. Prince is charged with second-degree murder, unlawful use of a weapon and armed criminal action in a shooting incident in which another teenager died.

The report said that Prince spent more than five months in the county jail before his grandparents put together enough money to secure a $750,000 bond from McBee. The Princes agreed to pay $3,000 down, another $3,000 seven days after Prince’s release, and $1,500 a month until they paid a total of $75,000, or 10 percent of the bond. The family’s collateral included a 1983 Oldsmobile Cutlass, a 1986 Chevrolet pickup and a home on Sackets Road in Boone County.

The day after Prince made bond the prosecutor alleged that he had jailhouse recordings indicating that Prince may attack witnesses to the shooting. Prince’s bond was increased to $1,000,000 cash only and a capias warrant was issued. Prince was re-arrested the same day.

The Tribune reported that despite Kristopher Prince’s arrest and his higher bond, McBee wants the Prince family to comply with the original agreement. "We performed a service," he said. "We earned that fee by getting him out of jail."

Assistant Prosecutor Daniel Knight said that after learning of Prince’s release from jail, he called the circuit clerk’s office and learned McBee’s agency didn’t have enough collateral to insure the $750,000 bond, with the family assets listed as $657,000, at most.

Since Prince’s release and re-arrest, Prince’s grandparents, Lawrence and Edith Prince, have filed a consumer complaint with the DIFP. The report said that the DIFP is trying to determine whether the $750,000 bond is in effect. Emily Kampeter of the DIFP said that state officials are investigating the assets of McBee Bail Bonds.

The 13th Judicial Circuit has since issued an order regarding the posting of bonds. "The Circuit Clerk should be contacted before a surety bond in excess of $250,000 is accepted. The Court may require additional collateral on any bond when it appears from the information available to the Court that the surety is without sufficient assets to cover the bond requested and all outstanding bonds for which the surety is liable."

See Post on Credit Bonding 4/20/2006

Website: Rewards4fugitives

I received an email from Ben Mares, webmaster of http://www.rewards4fugitives.com/. Ben would like to share his website with bondsmen around the nation. He tells me that tips from the site helped capture this fugitive who was extradited from Mexico.

The site is free for listing agents and all rewards and phone tips are handled directly by the listing agent.

Bait and Switch

Subverting the Public’s Right to be Heard

You’ve heard of the fraudulent merchandising practice called bait-and-switch. A retailer lures in customers by advertising a product at a low price and then tells customers that the advertised product is not available but you can buy a substitute at a higher price. Bait-and-switch is also a political term used to describe how bills can be passed while avoiding required public discussion. A bill is proposed (the bait) with the ultimate objective of substantially changing the wording at a later time. The original bill is scheduled for a hearing to meet legal requirements for public notice and discussion. A substitute bill is later submitted (the switch), thus bypassing the objective of public discussion on the real language proposed. While the bait-and-switch trick is technically legal, it is ethically and morally reprehensible, because the political objective is to get legislation or rules passed without anticipated negative community review.

That is exactly what happened at the public hearing I attended last Tuesday on SB869 in the Capitol in Jefferson City. The original bill was noticed for public hearing. I prepared written and oral testimony based upon the version of the bill which was advertised in the public hearing notice. When Senator Wes Shoemyer was called upon to introduce his bill, he announced that he was submitting a substitute bill. The substitute was distributed only to the committee members at the hearing. Since the public had no access to the substitute, they could not be prepared to testify about the provisions under consideration by the committee.

Senator Shoemyer then introduced me to testify in support of his substitute. I was stunned to be called as a witness on a bill I had never had the opportunity to review. I explained to the committee that I felt placed in an awkward position by being called to testify in favor of a bill I had never seen. I further explained that I was not given an opportunity to review the sub and I wasn’t prepared to testify concerning language I had not reviewed.

Blind-sided by the bait-and-switch, I told the committee I had come to testify concerning the original SB869, which only proposed the removal of five words-"within the past fifteen years"- from the bail statutes. Those five little words became known as the Lee Clause after SB1122 passed in 2004. The Lee Clause became law after bondsman Virgil Lee Jackson lobbied for a change in the statutes so he could obtain his general bail bond license. Jackson was an 8-time convicted felon and was unable to get a general bail license. Jackson and others hired lobbyist Steve Carroll and successfully added the 15-year clause allowing convicted felons to be licensed as long as the conviction was over 15 years old. The provision was hidden deep in a huge bill entitled "Dentistry" and passed in final days of session. The 15-year look-back was dubbed the “Lee Clause” since it was specifically crafted to allow Jackson to obtain his general license.

I explained to the committee how the courts have routinely held that the State of Missouri is placing its “seal of approval” upon an individual when it grants a state-issued professional license. The public can then have faith and confidence in the licensee because he/she has obtained this approval. I detailed Jackson’s criminal past and how he was granted a bail bond license in 1996, even though he had served approximately 20 years in state and federal prisons for eight separate felonies he committed over his lifetime. Shortly after the Lee Clause became law in 2005, Jackson was arrested for conspiring to murder his competitor, former Missouri State Representative Jerry Cox. Jackson is now serving 10 more years in a federal prison. I also testified that licensing felons like Jackson damages the integrity of the bail industry, it is bad public policy for the state, and undermines the citizens’ trust in the credibility of all state-issued professional licenses.

The bail bond association lobbyist, Steve Carroll, spoke in favor of the substitute that others were denied the opportunity to review.

Senator Frank Barnitz had signed on as co-sponsor of the original bill just after the session began. I spoke with Senator Barnitz after the hearing and he informed me of his displeasure that he was not notified of the substitute. Barnitz said that co-sponsors expect the courtesy of reviewing the proposed substitute language if his/her name is on the bill. He said that he is opposed to the changes proposed by the bail association and Senator Shoemyer, and only supported the bill as it was originally filed.

The Elections Committee has not met since the hearing to determine whether it will pass the bill, amend the bill, or even take up the bill at all. The committee chair, Senator Delbert Scott, has extended an invitation to submit written testimony on the substitute prior to any decision of the committee.

Although pulling a bait-and-switch is a legal and accepted political maneuver, it certainly subverts the public’s right to be heard in a “public hearing.”

Previous Posts on SB869
Hearing Scheduled
Barnitz Co-Sponsors SB869
Shoemyer Pre-Files SB869

OK-Fugitive Escapes During Transport

The Gallup Independent reports that two fugitive recovery agents were transporting Richard Youtsey back to Oklahoma after he failed to appear on charges of false personation, felony larceny and DWI. Youtsey was captured in California and was in the process of being transported back to Greer County, OK. The agents stopped at a casino to allow Youtsey a restroom break, according to the report. The agents removed the prisoner’s handcuffs and Youtsey managed to escape. An Oklahoma multi-agency manhunt began including use of tracking dogs and helicopters. Area schools were on partial lockdown. The search was called off without results late Friday.

Youtsey’s bond was set at $200,000 after he failed to appear last month in Greer County. Youtsey is described as between 5 feet 9 inches and 5 feet 11 inches and weighs between 140 and 160 pounds. He has hazel eyes and brown hair. He was last seen wearing blue jeans, a white shirt, gray hooded sweat top, a white Route 66 baseball cap and may be wearing tennis shoes. State police report that Youstey has tattoos on his hands and arms.

SB869 to be Heard by Senate Committee

SB869 will have a hearing this coming Tuesday, January 22, 2008, at 2:30 PM. The bill will be heard by the Senate Financial, Governmental Organizations, and Elections Committee.

The bill seeks to repeal the Lee Clause, which has allowed convicted felons whose convictions are over 15 years old, to be licensed. The language in the bill will prohibit felons regardless of when the conviction occurred.

The bracketed red text in the following statute is proposed to be deleted in SB869:

RSMO 374.755. 1. The department may cause a complaint to be filed with the administrative hearing commission as provided by chapter 621, RSMo, against any holder of any license required by sections 374.695 to 374.775 or any person who has failed to renew or has surrendered his or her license for any one or any combination of the following causes:
(2) Final adjudication or a plea of guilty or nolo contendere [within the past fifteen years] in a criminal prosecution under any state or federal law for a felony or a crime involving moral turpitude whether or not a sentence is imposed, prior to issuance of license date;

The committee members are as follows:

Delbert Scott, 28th, Chair
Jason Crowell, 27th, Vice-Chair
Kevin Engler, 3rd
Brad Lager, 12th
John Loudon, 7th
Maida Coleman, 5th
Jolie Justus, 10th
Harry Kennedy, 1st
Jeff Smith, 4th

If you have an opinion to share, I encourage you to attend the hearing or contact your senator. If you don't know your senator, use this handy tool.

Previous Posts
Barnitz Co-sponsors SB869
Shoemyer Files SB869-

Bondsman Arrested on Stealing Charges

KOAM-TV reports that bondsman Jackie Covey and her boyfriend, Aaron Redburn, were arrested in Jasper County on felony stealing charges. They were arrested after Carthage police served search warrants at their home and at Covey's business. KOAM reports that Covey and Redburn were allegedly involved in multiple thefts at area Wal-Mart stores. According to the report, authorities say Covey is seen on surveillance video returning a stolen home theatre system and receiving a gift card in exchange.

Covey works under the authority of Mabel Jane Kuehn and also Joseph Vanhorn. Covey has been licensed since 2003. Casenet indicates that the DIFP requested the court file pertaining to this case on January 9th.

DOC Offers Online Offender Search Tool

The Missouri Department of Corrections is offering a web-based search of all active offenders including those on probation or parole. You can search by name or offender ID number. The site includes sentencing information, photos if available, and probation officer’s name and location.

DIFP Enters Into Consent Agreement on License Refusal

The DIFP has entered into a consent agreement with general agent Stephan Burke of Doniphan. On December 31st, the DIFP refused to renew Burke’s license, alleging that Burke had failed to file his monthly affidavit for five years. The DIFP also alleged that Burke had failed to supply it with requested information concerning his renewal.

On January 11th, the department entered into a consent agreement with Burke ordering that the DIFP will renew Burke’s license on the condition that he obey all laws including the statute requiring monthly affidavits. Burke waives any right to judicial review or a hearing before the Administrative Hearing Commission.

Previous Post on Burke Case

Sun Leader Publishes New Information in Fugitive Recovery Case

The Lake Sun Leader has published new information and a correction in the case between bondsman David Vinson and his client Ronald Brown. The newspaper reports that Brown, 25, was facing multiple charges passing bad checks and driving with a suspended license. On October 12, he was scheduled to appear in court. Versailles Assistant Police Chief James Burkhart said Brown had sent a 'significant other' into court for him to make an excuse why he couldn't be there while Brown was outside in his vehicle circling town. When Vinson found him, they took off in a car chase through Versailles, Burkhart said. Vinson managed to corner Brown on a dead-end street. There was yelling, Burkhart said, which prompted nearby residents to call police. As officers were arriving, Brown escaped by driving through a resident's yard. That's when Vinson allegedly fired his gun at Brown's vehicle. Vinson was charged with five felony counts including assault in the first degree and unlawful use of a weapon. He was taken into custody by the Versailles Police Department and held on a $50,000 cash-only bond. His bond was later reduced to $25,000, 10 percent cash or surety bond and posted by one of Vinson's agents.

Last week, it was reported that the fugitive’s name was Randall Brown and he remains at large. A correction was published yesterday in which the Sun Leader reported that the fugitive’s name is Ronald E. Brown and he has been in custody since last November. My previous post has been amended to reflect the correction.

Senator Barnitz Co-Sponsors SB869

Senator Frank Barnitz-D, Lake Spring, has signed on as a co-sponsor of Senator Shoemyer’s bail bond bill, SB869. The legislative session began last week and the bill received its first reading in the Missouri Senate.

The bill seeks to remove the clause which allows felons to become licensed if the conviction is over 15 years old.

The statute currently reads:

374.755. 1. The department may cause a complaint to be filed with the administrative hearing commission as provided by chapter 621, RSMo, against any holder of any license required by sections 374.695 to 374.775 or any person who has failed to renew or has surrendered his or her license for any one or any combination of the following causes:
2. Final adjudication or a plea of guilty or nolo contendere within the past fifteen years in a criminal prosecution under any state or federal law for a felony or a crime involving moral turpitude whether or not a sentence is imposed, prior to issuance of license date;

Senators Shoemyer and Barnitz seek to remove the words “with the past fifteen years” from the above statute, making the law prohibit felons regardless of when the conviction occurred.

My previous post on SB869

FL-Bondsman Criticized for Takedown in Public Building

According to several press reports from Florida, a senator, a tax collector, and other officials are criticizing the actions of Florida bondsman David Lowman. The controversy began after Lowman took client John Darlington into custody in the local tax collector’s office. Lowman had posted a $15,000 bond for Darlington last October for grand theft. He was released from jail after his mother put up 10 percent of his $15,000 bail to Lowman. Lowman, who owns Help Bail Bonds of Clearwater, said Darlington had checked in every week like he was supposed to since his release. But recently Nell Darlington told Lowman that her son wasn't keeping his bargain with her. He had left town in her truck, and she wanted it back. She also wanted his bail revoked. Nell Darlington decided to lure her son back by promising to transfer title of the truck to him, Lowman said. They agreed to meet at the tax office.

Lowman left his weapon in his car as he knew it was illegal to carry a weapon into a government building. Lowman was accompanied by his twin brother, Donald Lowman. The Lowmans approached Darlington in the waiting area of the tax office and asked him to stand up to be hand-cuffed. Darlington began resisting arrest and pulled a handgun from his waistband. According to reports, there were about 25 people in the tax office at the time of the incident. The Lowmans and another person were able to subdue Darlington until police arrived. No one was hurt except Darlington, who received minor abrasions to the face. Darlington faces new charges including felon in possession of a firearm and carrying a concealed weapon.

After the incident, it was reported that Donald Lowman does not hold a bail bond license and is a convicted felon. According to reports, Florida law prohibits fugitive recovery work without a bail bond license. Additionally, Florida statutes also say bonding agency owners may not "employ, contract with, or use the services" of anyone convicted of a felony.

Tax Collector Mike Olsen has spoken with the press several times about the incident. He has criticized Lowman for attempting the apprehension in a busy public building. He has asked for an investigation into the matter as well as changes in the law to prohibit this from happening again. State Sen. Mike Fasano on Friday crafted a letter to Alex Sink, Florida's chief financial officer, asking her to look into what happened and prevent a repeat. "Since the regulation of bail bondsmen falls under the jurisdiction of your agency, I am requesting that an investigation be done into this matter so that we can take the necessary steps, whether by rule or legislation, to make certain this never happens again," Fasano wrote. "I'm sure you agree that a citizen should be able to feel safe in a public office whether it be the office of the tax collector, a legislative office or even the DMV." Local authorities are also investigating the matter.

Bondsman Has Preliminary Hearing in Fugitive Incident

Yesterday, the Lake Sun Leader reported that that bondsman David Vinson of Camdenton has been bound over to circuit court in the incident which occurred in Morgan County when Vinson attempted to apprehend fugitive Ronald Brown. Vinson was charged with five felonies in mid-October while trying to apprehend Brown. According to the report, Vinson had tracked Brown to a home in Versailles. Brown managed to escape, but only after Vinson allegedly shot out the back window of the SUV Brown was trying to escape in. Vinson was charged with assault in the first degree, assault in the second degree, discharging/shooting a firearm at or from a motor vehicle, unlawful use of a weapon and tampering with a motor vehicle in the first degree. He was taken into custody by the Versailles Police Department and held on a $50,000 cash-only bond. His bond was later reduced $25,000, 10 percent cash or surety and posted bond through one of his agents.

Bondsman to be Sentenced in Distribution Case

Bondsman Gregory Tetro, of Columbia, is scheduled to be sentenced in US District Court in Jefferson City on January 25th. Tetro entered a plea of guilty in March 2007, to knowingly and intentionally attempting to possess with the intent to distribute a controlled substance. The plea agreement states that Gregory Tetro purchased five pounds of marijuana from a DEA agent. Between June 16 and 25, 2004, the DEA recorded a series of calls with Tetro, in which they discussed a special agent providing Tetro with marijuana to sell. Tetro estimated that he could sell approximately 30 pounds in two weeks, and agreed to start with a purchase of five pounds. They met on June 25, 2004, at the Red Roof Inn in Columbia, Missouri, and Tetro paid $2,750 for the five pounds of marijuana. He told the agent that he used to sell about 50-60 pounds of marijuana every two weeks, and was trying to re-establish his clientele. Tetro was indicted in December 2005.

Tetro was licensed in November 2004 under the authority of Jack Allison. He later worked under the authority of Tina Bozarth. Tetro’s license expired in November 2007 and his renewal application has not been approved by the department. Tetro has no pending disciplinary actions with the DIFP at this time.

MSHP Post Arrest Reports Online

Here is a handy tool. The Missouri State Highway Patrol posts arrest reports online for five days. You can search by name, county, troop, or date. The reports contain only arrests made by the MSHP and do not include arrests made by other law enforcement agencies.

DIFP Refuses to Renew General Agent's License

The DIFP has refused to renew the general agent’s license for Stephan Burke of Doniphan. The DIFP’s order states that Burke’s license has been refused because for the last five years, he has failed to file a monthly affadavit as required by RSMO 374.760. Additionally, the department alleges that Burke failed to supply additional information on his license renewal application as requested by the DIFP’s special investigator. The department’s order does not specify what information it had requested. Burke has 30 days to request a hearing before the Administrative Hearing Commission.

Burke has been a licensed general agent since 2001 and previously held an agent’s license beginning in 1997.

Addressing Consumer Complaints

Professional bail bond companies offer excellent customer service

A few months ago, I published a guest editorial from the DIFP, Consumer Affairs Division. The editorial stated that consumer complaints received by the Department usually involve “an agent’s handling of an initial bail transaction, misappropriation of bail money or collateral, failure to return bail money or collateral in a timely manner after proceedings have concluded and unlicensed bail bond or fugitive recovery activity. The most common complaint: lack of customer service.”

I received the following email from a person yesterday. The name and some details of the transaction have been withheld.

I am having a difficult time getting a refund from a Missouri bail bond agent and need to know what action I can take or who to contact. I was put in jail and released my belongings to a bondsman so I could post the full bail using my credit card for $600 bail, plus $120 bond fee. The bondsman said all I would need to do to get the refund is to notify him/her after my court date and it could take up to 90 days to get the $600 credited back to my card. I went to court last summer and have been in contact several times, usually getting the run-around like the boss isn't here right now, or on vacation...etc. The last time I did get a straight answer and was told the collateral would be released in 3-4 days. That was before Christmas and I am losing my patience. What can I do at this point?

I responded to the inquiry, informing the person that if a concern with a bail bond agent goes unresolved, consumer complaints should be directed to the DIFP.

If you need to get in contact with the DIFP, the Consumer Insurance Hotline is 1-800-726-7390. Anyone can file a complaint online here or download a paper complaint here.

There are always two sides to every story, but the best way to avoid disgruntled clients is to be responsive to customer inquiries.

13th Circuit Issues Order on Posting Bonds

The Thirteenth Judicial Circuit has recently issued an administrative order regarding the posting of surety bonds. The order requires that:

A) All persons who act as surety must meet the requirements of Missouri Supreme Court Rule 33.17.
B) All persons who act as surety for compensation must also:
1) Meet the requirements of Missouri Supreme Court Rule 33.18.
2) Be licensed as a general agent or be licensed as a bail bond agent working under the authority of a licensed general agent. A current copy of the license should be kept on file w/ the Circuit Clerk.
3) File a General Affidavit of Qualification and a General Affidavit-Questionnaire on the forms provided by the Circuit Clerk. The forms used by the court are the Missouri Supreme Court forms from the links above.
4) File with each bond a Special Affidavit of Qualification on the form provided by the Clerk.
C) The Court shall determine whether an individual meets the qualifications to post a bond on a case by case basis, based on information provided by the individual desiring to act as surety, and any other information which may be available to the Court. The Circuit Clerk should be contacted before a surety bond in excess of $250,000 is accepted.
D) The Court may require additional collateral on any bond when it appears from the information available to the Court that the surety is without sufficient assets to cover the bond requested and all outstanding bonds for which the surety is liable.

DIFP Orders General Agent to Cease Writing Bail

The DIFP has issued a cease and desist order prohibiting general agent Regina Muwwakkil and all others doing business under her authority from engaging in the bail bond business. The order states the Muwwakkil’s certificate of deposit was forwarded to Jackson County Circuit Court last September. After the DIFP was notified the CD had been attached, the department gave Muwwakkil several weeks to replace it. When the CD was not replaced, the DIFP issued the cease and desist order.

Muwwakkil, of Kansas City, has been licensed as a general agent since September 2006, and was previously licensed as an agent in 2001. She currently has seven agents writing under her authority.

Muwwakkil may be required to pay the costs associated with the department’s investigation when a hearing is held on February 5th.

Hugh Sentenced in Federal Wire-tapping Case

Bondsman Richard Hugh, 54, of Sparta, was sentenced in U.S. District Court to 18 months in federal prison without parole. Hugh was convicted of intercepting the telephone communications of a Springfield resident without permission. Hugh placed the phone tap on the victim’s telephone line in December 2005 in an attempt to get information that would help him locate Basil Minor, who was a fugitive in a Lawrence County, Mo., circuit court case. Hugh recorded conversations from that telephone from Dec. 13 to 24, 2005, using equipment he purchased at Radio Shack.

Hugh’s bail license expired last September. There are no pending disciplinary actions against him at this time.

US Attorney’s Press Release
Hugh Found Guilty of Wire-tapping
Hugh on Trial

OK-Bondsmen Encounter Gunfire

According to this report from newsok.com, Oklahoma bondsmen Carole Franklin and David Dunn barely escaped with their lives in a shooting incident near Oklahoma City. Franklin and Dunn approached an apartment to apprehend a bail fugitive. As Dunn prepared to kick in the front door, Franklin observed fugitive Vicki Sanders through a window and saw that she was armed. Franklin yelled to her partner as Sanders turned the gun on Franklin and fired. Franklin threw herself to the ground and escaped injury.

The Oklahoma State Police were summoned. After a six-hour stand-off, Vicki Sanders was killed after a shoot-out with police.

Unsatisfied Judgment List

The bail bond unsatisfied judgment list is compiled by the DIFP and the Missouri Office of State Courts Administrator. The following companies appear on the most recent list. The list is distributed to local courts via electronic means.

1) A&J Bail Bonding, LLC, no longer licensed- 6 judgments totaling $7,900
2) L&C Investment Group, president-Douglas Cheatham of Blue Springs, MO, -no longer licensed-4 judgments totaling $103,250
3) Billy Corn Sr, Cassville, MO-1 judgment for $500
4) Sun Surety Insurance Company-1 judgment for $1,500

There are no agents, general agents, or companies reported with pending disciplinary action.

Bail Bond Bill Prefiled in Senate

Senator Shoemyer Wants to Abolish the “Lee Clause”

Senator Les Shoemyer-D, Clarence, has prefiled a bail bond bill, SB869, in the Missouri Senate. Shoemyer’s bill introduces no new language and only seeks to repeal five words from the current statutes. Those five words, the Lee Clause, allow felons who have not been convicted within the last 15 years to be eligible for a bail bond license or a general agent’s licence. (See full text below. The bracketed text, “within the last fifteen years,” is to be repealed.)

RSMO 374.755. 1. The department may cause a complaint to be filed with the administrative hearing commission as provided by chapter 621, RSMo, against any holder of any license required by sections 374.695 to 374.775 or any person who has failed to renew or has surrendered his or her license for any one or any combination of the following causes: (2) Final adjudication or a plea of guilty or nolo contendere [within the past fifteen years] in a criminal prosecution under any state or federal law for a felony or a crime involving moral turpitude whether or not a sentence is imposed, prior to issuance of license date;

Virgil Lee Jackson and the bail association lobbied for the Lee Clause when he was a member of the Missouri Professional Bail Bond(ing) Association. Lee wanted the clause adopted because his felony convictions were over 15 years old and he hoped that he would be able to get a general bail bond license after the clause became law. However, shortly after the bill became law, Lee was arrested for conspiring to murder his competitor, Jerry Cox. Lee pleaded guilty last month and was sentenced to 10 years in federal prison.

The Lee Clause was passed in an omnibus bill, SB1122 in 2004. The language was buried in a bill titled “Dentistry.” The bill was sponsored by committee chair Bob Behnen. Behnen inserted the bail language in the bill and accepted campaign contributions from Lee Jackson and the bail association. The Lee Clause became very controversial in the heated 18th District Senate campaign between Senator Shoemyer and former Representative Behnen. Shoemyer ran television commercials criticizing Behnen for sponsoring legislation supporting felons in the bail bond industry. Behnen lost the campaign to Shoemyer.

A spokesperson in Senator Shoemyer’s office said that Senator Shoemyer wants to repeal the felon language from the statutes because he wanted to act upon the issue he criticized his opponent for in the last campaign.

Last session, The Columbia Daily Tribune interviewed Speaker Rod Jetton about felons in the bail bond industry. When asked if felons should be allowed to be licensed as bondsmen, Jetton replied, “I believe I’m going to say no. I think that’s the correct answer – people with felonies shouldn’t have bail bond licenses. And if that comes up – I know that was a little bit of an issue there [in the Behnen-Shoemyer race] – I’m sure Sen. Shoemyer may deal with that. And I would anticipate that would probably get a lot of support.”

The bill is simple and straightforward. In only seeks to repeal the felon language from the law. We’ll see if it gets bogged down in the legislative session or wins support from those claiming they will support corrective language.

More Coverage on Felons in the Industry

Former Bondsman Gets Extensive Press 10/22/2007
Columbia Missourian: Felons Writing Bail 3/30/2007
Tribune Interviews Jetton About Bail Law 1/26/2007
Tribune Looks at Felon Provision 10/29/2006
STL Post Dispatch Series on Legislation and Jackson 10-11/2006
Law and Sausage Chronology of Bail Law Passage 10/3/2006
Joplin Globe Investigates Bail Bond Law 6/14/2006
Globe Investigates Bondsman with Criminal History 6/5/2006
How Felons Become Bondsmen 4/16/2006

FL-Bondsman Assaulted with Vehicle and Gun

According to this report in the The Ledger of Lakeland, FL, bondsman Terry Wells was assaulted with a gun and a vehicle as he tried to take Davis Paul King into custody for failing to appear on a $17,500 bond. Wells received a tip that King was trying to sell a stolen car in the parking lot of a Walgreens store. When Wells arrived, King recognized him and hit Wells’ car numerous times and then pulled a gun from the passenger seat. Wells pushed the gun out of King's hands and secured King on the ground before police arrived.

King was charged with theft grand auto, possession of methamphetamine, possession of oxycodone, possession of a prescription drug without a prescription, battery of a bail bonds personnel and failure of a defendant on bail to appear.

Services Announced for Bondsman

Our condolences to the family of bondsman Joseph C. Eldridge, 37, of Sunrise Beach, who died Dec. 3, 2007, from injuries related to an accidental shooting. He is survived by his wife and two children of the home, as well as extended family.

Mr. Eldridge worked under the authority of Ben Hilton and formerly served in the Navy in Operation Desert Storm.

A memorial service will be at 7 p.m. Monday at Kidwell-Garber Funeral Home in Laurie. In lieu of flowers, the family suggests memorial contributions to the Joseph C. Eldridge Memorial Fund.

Full obituary can be found here in the Sedalia Democrat

Court Reverses AHC in Christian Case

The Cole County Circuit Court has reversed the decision of the Administrative Hearing Commission in the Donald Christian licensing case, ruling that current statutes could be retrospectively applied in licensing issues.

Christian pleaded guilty in 1998 to possession of a controlled substance and according to the DIFP’s complaint, was sentenced to three years in the Missouri Department of Corrections. In 2005, Christian was issued a bail bond license. In November 2006, the department filed a complaint with the AHC, seeking to discipline Christian’s license because of the conviction. In May, the AHC issued a ruling that the DIFP had no cause to discipline because the statutes currently in effect could not be applied retrospectively to the time Christian pleaded guilty. The DIFP then filed a petition for review in the Cole County Circuit Court. The court said in its ruling that retroactive application of the statutes did not violate any of Christian’s rights and that the licensing agency has a vital interest in safeguarding the public’s health and welfare. In summary, the court said that the Director had established cause to discipline the licensee and ordered the AHC to reverse its findings and make a decision consistent with the court’s judgment.

According to the records, Christian was not present at the AHC hearing or the judicial review proceedings. He was not represented by counsel.

Links to previous posts
DIFP Files for Judicial Review
AHC Rules No Cause to Discipline

Under investigation: What bail bond agents should know about consumer complaints

Below is a guest commentary by the DIFP Public Information Administrator and the Consumer Affairs Division

It’s difficult to satisfy every customer all of the time. We all run into misunderstandings and conflicts once in a while, but it’s much easier to avoid these situations if we know what may cause them in the first place.

Take your time

In 2006, 122 general bail bond agents and 835 bail bond agents were licensed to do business in the state, and last year alone the department received 77 bail bond related complaints.

Some complaints involve an agent’s handling of an initial bail transaction, misappropriation of bail money or collateral, failure to return bail money or collateral in a timely manner after proceedings have concluded and unlicensed bail bond or fugitive recovery activity. The most common complaint: lack of customer service. Individuals using bail services complain that their agent did not return calls regarding court appearances, explain the terms of their agreement or treat them with respect. Failure to perform these basic services could lead to misunderstandings and prompt consumer complaints to the department. It’s easy for bail bond agents to respond to these misunderstandings by saying more customers should read their contracts rather than point fingers, but it might be more important to reflect on the interactions you have with your customers. It could save both you and the department time and resources.

Be responsive

The Consumer Affairs Division’s mission is to effectively enforce state laws and regulations governing business to protect consumers from unfair and inequitable treatment. To fulfill this objective, Missouri consumers may file a formal complaint against any person or company doing bail bond business in the state. Once the complaint has been filed, we are required by Missouri law to investigate it. Of course, there are often two sides to every story, so in nearly every case we must get the agent’s side. A department investigator will send a letter requesting information from the agent involved. If you receive a letter, its best to follow these procedures:

• Read the letter thoroughly, follow the instructions and meet the required deadlines.
• Tell us your story from beginning to end – What happened when you interacted with the complainant?
• Do you have notes or documents from the interaction?
• Give us full and complete documentation.

Remember, the quicker we get this information the sooner we are able to mediate or resolve the complaint to uphold both the bail bond agent’s and the department’s reputation.

Monitor the results

Only a small number of complaints result in some administrative enforcement action by the department. These actions can range from cease and desist orders to monetary penalties to consent orders requiring more continuing education to a suspension or revocation of an agent’s license. Most complaints are resolved through mediation by our investigators.

Both investigative and legal actions can be viewed on the department’s Web site under enforcement actions. Investigative actions are updated on a monthly basis and legal actions are posted on a daily basis. Viewing this information can give bail bond agents a better idea of the work the department does to enforce the bail bond laws of this state and protect Missouri consumers.

For more information about the department’s complaint and investigative procedures, please contact the Consumer Insurance Hotline at 1-800-726-7390.

Correction and Apologies

In my article dated November 28th discussing settlement agreements between the DIFP and license holders, I erroneously stated that no action was taken against Cody Ice’s bail bond license. The DIFP did revoke the licenses of both Cody Ice and his company, C&M Bonding, Inc. The Director’s order directing the revocation is found on page 5 of the settlement agreement.

The previous article has been amended to correct the misinformation. This is how bad rumors get started, my apologies.

DIFP Enters Into Consent Agreements on Unsatisfied Judgments

The DIFP has entered into consent agreements with two bail bond agents in Missouri. A consent order is issued by the director and the parties agree to waive rights to be heard by the Administrative Hearing Commission or any judicial review body.

The Department entered into a consent agreement with Gregory Billingsley, agreeing to issue him a bail bond license. Last year, the DIFP denied Billingsley’s application for licensure, citing that he had failed to satisfy bail bond judgments in 1999, when he previously held a general bail bond license. The Department said that Billingsley failed to meet the qualifications for surety as outlined in Missouri Supreme Court Rule 33.17(f): A person shall not be accepted as a surety on any bail bond unless the person has no outstanding forfeiture or unsatisfied judgment thereon entered upon any bail bond in any court of this state or of the United States. Billingsley appealed to the AHC and no decision has been published at this time. The consent agreement requires that Billingsley dismiss his case before the AHC.

The DIFP also entered into a consent agreement with C&M Bonding, Inc., and Cody Ice. The consent agreement states that C&M is no longer authorized to conduct bail bond business in Missouri. Both C&M and Ice's bail bond licenses were revoked by the director by consent. In the order, the DIFP stated that it attached the $25,000 CD assigned by C&M to satisfy some of the bail bond judgments against C&M in Texas County. C&M had previously appeared on the unsatisfied judgment list for accumulating $114,000 in unsatisfied judgments in Texas County. The Department dismissed its complaint with the AHC against C&M and Cody Ice.

DIFP Refuses to Issue Bail License

The DIFP has refused to issue a bail bond license to Kevin E. Williams of Nevada, MO. The department’s order states that Williams is disqualified to hold a Missouri bail license because of crimes related to moral turpitude, disregard for orders of the court, and a plea of guilty to a DWI. According to the DIFP’s order, Williams pleaded guilty to misdemeanor 3rd degree assault on his mother, had failed to appear in court resulting in a capias warrant, and had pleaded guilty in 2002 to misdemeanor DWI with accident. The order states that Williams is currently on probation for the assault.

The department reported no felony convictions for Williams. The Director is exercising his discretion in denying Willams’ license under the seldom used “crimes involving moral turpitude” and other language. Willams’ pleaded guilty to assaulting his mother, who suffers from dementia and other health problems. The order also stated that the department need not reach a decision as to whether the DWI would have disqualified Williams, and stated that the totality of the circumstances was reviewed to determine the fitness of the applicant for licensure.

Williams has 30 days to petition the Administrative Hearing Commission to be heard on the DIFP’s decision.

NJ-Fugitive Escapes by Assaulting Bondsman

According to this report in the Gloucester County Times in New Jersey, bail bond client Harold Gotts, 22, escaped while being transported to jail by his bondsman, Antonio Roman. Reportedly, Gotts kicked the car door into Roman as he was trying to remove Gotts from the car at the police station. Roman was pushed to the ground while Gotts, handcuffed in front, tried to escape to a vehicle waiting a few blocks away.

Roman alerted police and a manhunt ensued. Thirty minutes later, Gotts was apprehended still handcuffed. He was charged with simple assault, obstruction, resisting arrest, hindering apprehension and disorderly conduct. Bond was set at $25,000 full cash.

Gotts’ accomplices, his fiancé and two friends, were charged with obstruction, hindering apprehension and disorderly conduct.

IA-Inmate Conspires to Murder Bondsman

According to several press reports, the Wapello Sheriff’s Department in Ottumwa, IA arrested Marcelino Madueno-Moreno in the solicitation to have his bondsman, a girl-friend, and a corrections officer murdered. Madueno-Moreno posted bond on a gun charge, but later the bonding company revoked his bond and returned him to the Wapello County Jail. Allegedly, he then conspired to have his bondsman and girl-friend murdered. Madueno-Moreno also plotted to have a jail guard murdered in an attempt to escape when he was to be escorted to court. He is currently being held for probation violation, possession of a firearm by a felon, and solicitation to commit murder. His bond is set at $16,000.

Jackson Gets 10 Years

Former bail bond agent Virgil Lee Jackson was sentenced to ten years in prison today in US District Court in St. Louis. Jackson pleaded guilty last August to conspiracy to commit murder. The intended victim of the conspiracy was a bail bond company competitor, Gerald Cox of Cox Bail Bonds in St. Charles. Cox was not harmed as federal authorities were alerted to the hit before it transpired. Jackson has been in federal custody since his arrest in October 2005 and will get credit for the two years he has served.

The DIFP filed a disciplinary complaint against Jackson nearly two years ago. The hearing has been postponed pending the conclusion of all criminal charges. Now that Jackson has been sentenced, hopefully the hearing scheduled for December 12th can be heard before the Administrative Hearing Commission.

Accused co-conspirator Glen Dotson is scheduled to go to trial early next year.

Recent Press
US Attorney's Press Release
STL Post Dispatch
KC KSHB
STL KSDK
First Capitol News-St. Charles
Examiner.com
Cape Girardeau KFVS

My previous Posts
Lee Jackson held on federal charges 4/1/2006
Dotson Arrested/New Charges for Jackson 6/2/2006
Dotson/Jackson trial postponed 6/8/2006
Arraignment 6/13/2006
Trial postponed again 10/28/2006
Dotson Freed on Bond 11/15/2006
Jackson Accused of Another Murder Plot 11/22/2006
January Trial Date Postponed 1/22/2007
March Date Postponed 3/19/2007
Jackson Pleads Guilty 8/13/2007
Dotson Faces New charges 8/27/2007

CT: Cop and Bondsmen Plead Guilty to Bribery

A FBI investigation into police corruption in Connecticut has resulted in guilty pleas from a police narcotics officer and three bondsmen. The case resulted in extensive press coverage in the Northeast part of the country. Police officer William White pleaded guilty to conspiracy to commit bribery and theft of government funds. The three bondsmen, Robert, Phil, and Paul Jacobs, pleaded guilty to one count each of conspiracy to commit bribery. The bondsmen admitted to making cash payments to White and other officers in exchange for apprehension of bail bond fugitives and referrals. The bondsmen must repay $750,000 in forfeited funds and the prosecutor has recommended prison time and additional fines.

A link to coverage in the case is found at KFSB here.
Expected impact of Jacobs' bail business to court system.

DIFP Orders License Revocation for L&C

The DIFP has ordered that L&C Investment Corporation’s general bail bond license be revoked. According to the DIFP’s order, a disciplinary hearing was held in October and neither L&C nor its attorney was present. Earlier this year, the Administrative Hearing Commission ruled that L&C was subject to discipline for failing to satisfy a judgment in Buchanan County. The AHC did not find cause to discipline L&C in the complaint regarding the refund of a bail bond premium, when the bail bond did not result in the release of the defendant. In the same ruling, the AHC said that L&C President Doug Cheatham was not subject to discipline.

Previous Coverage:
Appellant Court Rules Against L&C
L&C Appeals to Supreme Court
MO Supreme Court Denies L&C Case
DIFP Files Complaint Against L&C
Press coverage from KMBC-9
AHC Rules Cause to Discipline
L&C Files Lawsuit Against Court and DIFP
L&C Dismisses Lawsuit Against DIFP