Pubdate: Thu, 31 Jan 2002 Source: Huntsville Times (AL) Copyright: 2002 The Huntsville Times Contact: http://www.htimes.com/ Details: http://www.mapinc.org/media/730 Author: David Holden, Times Staff Writer BAIL-BOND COMPANIES TAKE BIG RISKS Two In Drug Case Now Missing Leave Firms Facing Huge Losses The bail-bonding business can be a lot like gambling, said Stan Wilson, who has owned Liberty Bail Bond Co. for three years. "Even under the best circumstances, you risk losing your money," he said. It is not the best of circumstances for Roy E. Adams, the agent in the Scottsboro office of All State Bail Bonding Co., an affiliate of Capital Bail Bonding Inc. based in Reading, Pa. On Jan. 9, Madison County Circuit Judge Bruce Williams ordered Adams and All State Bonding/Capital Bail Bond to forfeit the $575,000 cash bond guaranteed for accused drug trafficker Silvero Perez after Perez failed to show up for two different court dates. The first installment payment, $10,000, was due by today. When a cash bond is forfeited, the money is turned over to the Administrative Office of Courts in Montgomery. The court that took in the bail money gets half and the state gets half. The A Alabama Bail Bond Co. Inc. of Huntsville, which guaranteed a $575,000 cash bond for Perez's partner, Amador Ortiz, might soon face a similar judgment. Forfeiting Money The story started in December 2000 when Huntsville police arrested the two Texans, Perez and Ortiz, in a drug sting at a local motel. The 13 pounds of uncut cocaine seized at the motel was the largest amount ever confiscated in Huntsville, but police and U.S. Drug Enforcement Agency agents soon came to believe the men had smuggled in nearly 100 pounds during that month alone. Perez, 28, and Ortiz, 27, were accused of delivering more than 70 pounds of cocaine to Leonard "Seekie" Smith in late December 2000. Smith, police said, directed authorities to Perez and Ortiz. Perez and Ortiz told authorities that Smith had kept most of the cocaine for himself and his drug distribution network. Smith, 34, of Huntsville was eventually charged with trafficking and conspiracy under the state's drug kingpin law. He is in Madison County Jail with bonds totaling more then $2 million. No trial date has been set in his case. Perez and Ortiz were also charged with trafficking, a charge that carries a sentence of up to life in prison. Their bail was originally set at $750,000 each by the county warrant magistrate, but Judge Karen Hall reduced bail to $575,000 each after Ortiz's lawyer, Patrick Hill of Huntsville, argued that his client was entitled to reasonable bail. "We pointed out that the defendants were significant flight risks and had no connections to the community, so we asked for high bail," said Don Rizzardi, an assistant district attorney. But the bail-bond companies took the risk, and the two were released in February. How Bail Works Bail is the temporary release of a prisoner in exchange for money or property to guarantee the person's return to court. A bail bond is a formal, written agreement signed by a criminal defendant or the person who puts up the money for bail to guarantee compliance with the court's terms. Anyone who is accused of any crime in the state of Alabama is entitled to bail under its constitution. However, bail is usually denied to a defendant accused of a capital murder. In Alabama, a magistrate initially sets the bond amount according to a bail schedule listed in the Alabama Rules of Criminal Procedure, said Huntsville attorney Fred Simpson. For drug trafficking, the bail can be up to $1 million. Some things that a magistrate or judge can consider in setting the bail, Simpson said, include the defendant's age, family, ties to the community, prior criminal record, other pending cases and his likelihood to commit violence or commit the same type of crime while on bail. Most bonding companies charge a client 10 to 15 percent of the bond amount in exchange for assuming the responsibility for paying the total bond if the client doesn't show up in court. Wilson, the owner of Liberty Bail Bond, said he will not guarantee bonds as high as those demanded for the Texans, and he looks for more security than 10 percent. "It's like borrowing money from a bank, because you look for collateral," he said. He also likes his clients to have relatives in the community with property and jobs or other income. There are two different kinds of bail-bonding companies: professional bail bonding companies like Liberty and A Alabama; and surety companies, like All State and Capital. Capital is one of the largest bail-bonding companies in the United States with affiliates in 48 states, said Tuscaloosa attorney John T. Fisher, who represents Capital in Alabama. Professional bail-bond companies must post a $25,000 certificate of deposit with the court, said County Circuit Clerk Jane Smith. Once that is done, there is no limit on the amount of bail bond the company can assume, "but the bail-bondsman is responsible for all bond forfeitures." A surety bail-bonding company has something to back the bonds it issues, often insurance policies. "I'm not sure whether it was an insurance-backed bond in this case," Fisher said, "but the bond is backed by Capital." Missing Defendants Perez missed two trial dates, both in September. Though officials know he often crosses the border into Mexico near the town of McAllen, Texas, Perez has dodged both All State/Capital bounty hunters and federal authorities, Fisher said. Perez is wanted by U.S. marshals on federal charges of drug trafficking and money laundering in New York state. Perez spends a lot of time in a Mexican town - Monterrey, Nuevo Leon, - - so notorious that it is dangerous for bounty hunters to try to catch him there, according to papers Fisher filed in court. "The feds asked us to cease our efforts to apprehend him," he said. "So we were stuck between a rock and a hard place." Judge Williams ordered All State/Capital to pay the court $10,000 by today, then $3,000 per month over the next five months, then $25,000 a month for the next 22 months. Payments will continue until the $575,000 is paid or until someone catches Perez, Fisher said. Once the court gets its money, there's no refund, even if Perez is caught. "After 60 or 90 days, if (U.S. marshals) have not apprehended him, we are going full speed ahead and get him ourselves," Fisher said. "We are not going to sit back and pay the money when we believe that this guy can be apprehended." Ortiz missed trial dates in October and on Jan. 7. He is scheduled to appear for trial on Feb. 11. Rizzardi has asked the state to start the bond forfeiture process if Ortiz doesn't show up. Ortiz's lawyer, Hill, said Ortiz has not been informed of the trial dates. All of the notices Hill mailed to Ortiz were returned unopened, he said. Jeff and Cathy Baucom, owners of A Alabama Bail Bonding, were not available for comment. But an agent with the company said they are making every effort to track Ortiz. His release was secured by a house in California, the agent said. "We have been in touch with his family in California," the agent said, "and we hope to have him in court." - --- MAP posted-by: Richard Lake