How many OTHER STATES is this situation taking place in????

Lawsuit: Gangs in O.C. jail run bail bonds scheme

By TONY SAAVEDRA
The Orange County Register
October 8, 2009

Federal complaint alleges that jail gangs solicit business for bail firms in return for kickbacks.

Three bail bondsmen alleged in a federal lawsuit today that the Orange County Sheriff's Department is allowing jail gangs to strong-arm inmates into hiring certain bail firms in exchange for kickbacks.

The suit by veteran bondsmen Don Mehr, Bob Drake and Robert Miller was filed under federal racketeering laws and names Sheriff Sandra Hutchens and the County of Orange.

"Honest bail bondsmen cannot compete with the extortion and brutality practiced by the criminal gangs who operate the Orange County jails with the compliance, connivance, assistance and instructions of the defendants," wrote Newport Beach attorney Richard Herman.

Assistant Sheriff Mike James, who is in charge of the jails, said the department has been working with local bail agents to identify problems in the jail system. So far, a handful of cases have been investigated and sent to the District Attorney's Office, James said.

However, the problem is not as bad as described in the lawsuit, he stressed.

"I would be foolish to say it doesn't happen at times, but when it has been brought to our attention, we investigate," James said.

Attorney Herman pointed to the October 2006 death of John Chamberlain at Theo Lacy jail, after which investigations found that deputies routinely used inmate leaders – or shot callers – to hand out punishment.

"These are prisoners who enforce the jail rules and are associates of criminal gangs, usually the Aryan Brotherhood and the Mexican Mafia," he wrote.

The use of phones and mail in the bail bonds scheme further violated federal laws, Herman wrote.

The bondsmen are asking for $100 million in damages, representing future losses. Federal racketeering statutes allow the damages to be raised to as much as $300 million.

The scheme, called "capping," first came to light during the administration of former Sheriff Mike Carona, who was later convicted in federal court of witness tampering. Some bondsmen accused then Assistant Sheriff George Jaramillo and prominent attorney Joseph Cavallo, of attempting to use jail inmates to drum up business for the bail firms and for Cavallo.

Jaramillo was ultimately jailed on corruption charges and Cavallo was convicted for his part in the bail bonds scheme.

Contact the writer: tsaavedra@ocregister.com or 714-796-6930

http://www.ocregister.com/articles/bail ... l-attorney