Bondsman Dies in Accident

Bondsman Brian John Bender, 35, died following an automobile accident near Pleasanton, Kansas. Brian worked for Freedom Bonding in Kansas City. His companion, Amber Gust, also lost her life in the accident. Visitation for Brian and Amber will be held from 6-8 p.m. Monday, June 9, at the Park Lawn Northland Chapel in Liberty. Mass of Christian Burial will be held at 10 a.m. Tuesday, June 10, at St. Therese Catholic Church, 7277 N.W. 9 Hwy., Parkville. In lieu of flowers, you may honor Brian and Amber's memories with a memorial donation to a fund for Brian's children, Christopher, Dawson and Kaden. Donations may be made payable to their grandfather, James W. Bender, and left at the funeral home or the church. He previously worked as an Emergency Medical Technician for the New York City Fire Department and later for MAST in Kansas City. Arrangements by: Park Lawn Northland Chapel in Liberty. Online condolences may be sent via http://www.parklawnfunerals.com/.

DIFP Issues Cease and Desist

The DIFP has issued another cease and desist order prohibiting Regina Muwwakkil and all those writing under her authority to cease writing bail without demonstrating to the State that Muwwakkil has a CD assigned to the State of Missouri in the amount of $25,000. The order also directs Muwwakkil to pay $544.16 to cover the costs of the DIFP’s investigation and fines her $3,500 for violating the insurance laws.

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. The DIFP issued a statement of charges against her on November 1st. In December, the department alleges they told Muwwakkil that she nor her agents could write bonds until the CD was replaced. The DIFP’s order states that in December and January Muwwakkil’s company wrote at least seven more bonds. In January, the department issued a cease and desist order. In February the cease and desist order was vacated. In May the matter came up for a hearing and Muwwakkil was assessed a fine, the costs of the investigation, and another cease and desist order was issued.

Previous coverage:
DIFP Orders General Agent to Cease Writing Bail 1/5/2008

Bondsman Fined in Licensing Issue

The DIFP reports that bondsman Michael McMahon, of Camdenton, paid a voluntary fine of $200 for department allegations of use of fraud, deception, misrepresentation or bribery in securing a bail bond license. McMahon was licensed as a general agent in May. He has held a bail bond license since 2003.

LA-Judges & Bondsman Guilty of Bribery

Two Caddo Parish, Louisiana judges were convicted by a federal jury last week of several charges involving corruption for taking bribes to reduce bonds, recall arrest warrants and remove probation holds on defendants.. The racketeering charges ranged from bribery and official misconduct to interstate commerce. The FBI began its investigation in 2003. The operation was enhanced in May 2007 when the FBI tapped cell phones. The two judges, Michael Walker and Vernon Claville, were convicted of offenses related to taking bribes from a middleman hired by bondsman Larry Williams. Williams pleaded guilty to one count of public bribery in exchange for testifying against the two judges. Each judge faces a maximum of 20 years in prison, a $250,000 fine or both.

According to the Louisiana Department of Insurance website, Williams' bail bond license is inactive although he holds a valid appointment with Allegheny Casualty Company.

My previous post:
LA Bondsman and Judges Indicted

Commission Worried About Housing Illegals

As reported yesterday, a bill passed this year requiring that suspected illegal immigrants held in county jails in Missouri must prove their lawful presence in the US in order to be eligible for bail. The Pulaski County Commission recently discussed the impact of this legislation on county budgets. The commissioners are worried about the cost of housing these prisoners. “They didn’t cut us any slack on per diem for prisoners, but here they are with this illegal immigration bill deal saying bail will be denied for people suspected to be illegal aliens until they can provide proof of legal residence in the United States,” Commissioner Bill Farnham said. “Who is going to pay for that? Us or the feds?” Presiding Commissioner Bill Ransdall said he wasn’t sure. “If they are arrested on state charges, I assume it would be us who has to pay for it,” Ransdall said.

Bohrer Named Acting Director of DIFP

Governor Blunt announced that Linda Bohrer will serve as Acting Director of the DIFP.

Former Director Doug Ommen was appointed to a position with the Administrative Hearing Commission to serve as a hearing commissioner. His last day with the DIFP was May 31st.

End of Session Report

What passed and what didn’t

The legislative session ended a few weeks ago. Thankfully, the bail bond board bills did not pass. Here’s a summary of the bills and their status.

SB1247-Created a bail bond board and imposed a bail bond tax to finance the board. Never received a hearing.

HB2454-Created a bail bond board and imposed a bail bond tax. Never received a hearing.

SB869-Originally, this bill was to repeal the 15-year “Lee Clause” which allowed the licensing of felons in the bail industry, as long as the felony was over 15 years ago. The bill sought to remove the 15 year clause, stating that felons could be denied a license, regardless of when the felony conviction. An amendment was offered by MPBBA in committee. The bill died in committee.

HB1549-One bill affecting our profession did pass. HB1549 passed, which instructs the courts on bail for those persons residing in Missouri who are not legal residents of the US. The bill states that if a judge believes a person is unlawfully present in the US, there is a presumption that releasing that person under ANY condition will not reasonably assure appearance in court. The person shall be committed to jail until he/she can prove lawful presence or until the case is discharged.

Text of the HB1549
544.470. 1. If the offense is not bailable, or if the person does not meet the conditions for release, as provided in section 544.455, the prisoner shall be committed to the jail of the county in which the same is to be tried, there to remain until he be discharged by due course of law.
2. There shall be a presumption that releasing the person under any conditions as provided by section 544.455 shall not reasonably assure the appearance of the person as required if the circuit judge or associate circuit judge reasonably believes that the person is an alien unlawfully present in the United States. If such presumption exists, the person shall be committed to the jail, as provided in subsection 1 of this section, until such person provides verification of his or her lawful presence in the United States to rebut such presumption. If the person adequately proves his or her lawful presence, the circuit judge or associate circuit judge shall review the issue of release, as provided under section 544.455, without regard to previous issues concerning whether the person is lawfully present in the United States. If the person cannot prove his or her lawful presence, the person shall continue to be committed to the jail and remain until discharged by due course of law.

Dotson Found Guilty

Glen Dotson was found guilty today of conspiracy to commit murder and delivering a firearm to a known felon. Dotson’s trial began one week ago in US District Court in St. Louis. Dotson was found guilty of conspiring with Virgil Lee Jackson to murder competitor Gerald “Jerry” Cox. The jury reached a verdict of guilty on both counts and he was taken into federal custody. He will be sentenced at a later date. The sentence range is 10-14 years.

Glen Dotson and Virgil Lee Jackson, both formerly licensed bail bond agents, conspired to murder Cox in 2005. Jackson pleaded guilty to conspiracy to commit murder last August and was sentenced to 10 years.

Story on KSDK 5/12/2008
STL Post Dispatch 5/12/2008

My Previous coverage:
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
Jackson's Bail License Revoked 2/8/2008

Show-Me Daily Blogs About Bail Industry

The Show-Me Daily Blog recently opined about the Riverfront Times article concerning the saga of Lee Jackson and the legislative activities of the MPBBA. The Show-me Daily is hosted by the Show-Me Institute, a Missouri public policy think tank. The posts encourage readers to read the whole Riverfront Times article and selects key quotes to demonstrate the history of the MPBBA and its political agenda.

In another post on the same site, blogger David Stokes writes of his support of private bail and the US system. The blog also posted an article concerning its thoughts on professional licensing in general. Stokes thinks that the bail industry is one of the industries that should have some sort of professional registration, although is not supportive of the idea of state regulatory bodies' relationships with trade associations because as he writes, "because existing firms will always try to use political muscle to limit their competition from the outside."

I encourage you to click the links for a different perspective from outside the bail industry.

Bail Agents Return Fire in Kansas City

The following report was posted on the Kansas City Star website:

Two bond agents looking for a bail jumper exchanged gunfire with a man Tuesday night inside a house in the 2600 block of Park Avenue. No one was hurt. Police said 13 people were in the home when the bond agents arrived to arrest a 34-year-old man who had skipped his court date, leaving the bond company responsible for his $2,000 bond. Someone slammed the door in the bond agents’ faces. As the agents tried to pry it open, someone inside began firing through the door. One agent fired one shot back. When police came, the home’s occupants surrendered. Detectives questioned two occupants, including the bail jumper. No charges were filed in the shooting, pending further investigation.

Ommen Nominated for AHC Commissioner

Last week, Governor Blunt issued a press release announcing he had nominated Department of Insurance Director Doug Ommen to the Administrative Hearing Commission. The term will run until 2014. The nomination is pending Missouri Senate confirmation.

AR: Man Charged w/ Impersonating a Marshal

An Arkansas man has been charged with impersonating a US Marshal. According to the Arkansas Democrat Gazette, Jonathan Horton is not licensed as a bounty hunter or bondsman, but sometimes worked as a fugitive recovery agent for a bonding company. The report states that Horton tried to have police equipment installed in his truck and had announced himself as a federal marshal to area police officers as well as the public. The judge in the case has ordered Horton detained because he is considered a flight risk by the court because of his frequent moving from state to state.

Bondsmen: Helping Victims, Saving Taxpayer Money

Here's a great story from WBTW TV in South Carolina. It profiles the job of a bondsman and how that job saves taxpayer dollars and delivers accountability to the court system.

Boone County: Arrests Lead to Cash-Only Bonds

The Columbia Daily Tribune headlined a story yesterday, “Frequent arrests drive demand for cash-only bonds.” The article details the arrests two defendants in Boone County and reports the prosecutor’s move to revoke their surety bonds in favor of cash-only bonds. In both cases, the accused men had been arrested for assaulting women shortly after being released on surety bonds. The judge in the cases revoked the surety bonds posted and ordered the men held on bonds which were set at part cash-only and part surety.

The Columbia Daily Tribune has reported on several bail bond cases since the first of the year. Previously, the Tribune reported on a $750,000 bond posted in Boone County which resulted in a bond revocation and the changing of Boone County Court’s process of qualifying bondsmen who write bonds in the circuit.

CDT Coverage:
Frequent Arrests Drive Demand for Cash-only Bonds 4/19/2008
Murder Case Leads to New Bond Rules 2/6/2008
Murder Case Subject of Bail Squabble 1/24/2008

RFT: Bondsmen in the STL News

The Riverfront Times printed an article concerning the bail industry. The article reviews the history of Virgil Lee Jackson and his murder plot against local competitor Jerry Cox. The article also examines the legislative agenda of the Missouri Professional Bail Bond Association (MPBBA) and the representatives and senators who accepted money from them to change the bail laws to allow for the licensing of felons. MPBBA defended changing the law to accommodate Lee Jackson's criminal past, even though Jackson had been convicted of 8 felonies and spent 20 years in prison. According to the article, Jack Allison characterized Lee Jackson as a model employee. The article quoted Allison saying, "The whole time that Lee worked for me he was professional. He did everything the way you're supposed to do it." Jackson worked for Allison at the time he was arrested for the murder plot. Allison is on MPBBA's legislative committee and told the reporter that the association supports the licensing of felons and had no plans to remove the Lee Clause.

FOLLOWUP: Fugitive Incident Case History

I have received several phone calls regarding my post yesterday involving the fugitive recovery incident addressed by the Administrative Hearing Commission in 2000. Michael Keethler’s bail license was re-issued by the DIFP in 2005. His license is now active and in good-standing with the DIFP.

AHC Case History on Fugitive Incident

I came across an older case which was decided by the Administrative Hearing Commission (AHC) in 2000. I became interested when I learned that the case involved the use of a weapon while performing fugitive recovery work. The agent involved, Michael Keethler, had his license renewal refused by the AHC for gross negligence involving his work as a bondsman. According to a report published by the Columbia Daily Tribune and the decision of the AHC, Keethler went to the residence of Larry W. Creason in order to revoke his bond. Keethler and another agent blocked the car that Creason was in and tried to take him into custody. Creason escaped on foot. The reports stated that Keethler fired a warning shot and then fired two other shots, one of which grazed Creason on the head. The police were summoned and Keethler was arrested for armed criminal action, first-degree assault, and unlawful use of a weapon and released on a $45,000 bond. Keethler later pleaded guilty to misdemeanor assault with injury and was placed on two years probation. The DIFP refused to renew his license citing that Keethler had committed incompetency, gross negligence, or misconduct in the performance of his duties as a bondsman in violation of RSMO 374.755(5). Keethler filed a complaint with the AHC against the department’s action. The commission ruled that Keethler had not committed misconduct by having the weapon with him. The commission said, “We recognize that Keethler had reason to believe that Creason could be armed and dangerous. For that reason, we do not believe that Keethler committed the act with a wrongful intention, which would be misconduct.” The AHC also said, “However, there was no evidence that Creason actually was armed, and he was running away at the time Keethler shot him. Keethler fired the shots in a trailer park while a number of people were at the scene. Such actions were reckless and demonstrate a conscious indifference to professional duty. We conclude that Keethler’s conduct was gross negligence, but we find the evidence insufficient to demonstrate incompetency or misconduct.”

When the AHC rendered its decision on Keethler, it published the following definitions:

Incompetency-either a licensee’s general lack of present ability, or a lack of disposition to use his otherwise sufficient present ability, to perform a given duty.
Misconduct-the willful doing of an act with a wrongful intention.
Gross negligence-an act or course of conduct which demonstrates a conscious indifference to a professional duty, and that indifference constitutes a gross deviation from the standard of care which a reasonable person would exercise in the situation.

Incidentally, Larry W. Creason was arrested earlier this week after a long pursuit in Boone County involving a helicopter. Creason was charged with possession of meth paraphernalia, possession of meth chemicals, and resisting arrest. His bond was listed at $50,500 and he was later released on bond.

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.