Fired O.C. Assistant Sheriff Denies Role in Bail Bond Kickback Scheme

For years, local bail bond firms say, they have complained to the Orange County Sheriff’s Department that its jail system is corrupted by illegal kickback schemes in which inmates are recruited to steer business, sometimes by force, to certain bond companies and attorneys.

Last week, just as the Orange County Bail Agents Assn. threatened to go public with a newspaper advertisement, sheriff’s officials promised they would look into the matter and take any necessary action, said Glenda Stroobant, the association’s vice president.

Sheriff’s officials acknowledged Friday that they had been contacted at least three times since 2002 -- and as recently as last month -- by bond companies concerned about corruption. But they declined to confirm, as media reports suggest, that the issue was tied to the dismissal of Assistant Sheriff George Jaramillo.

Jaramillo, who was fired Wednesday, also would not confirm the reports and denied that he had ever taken a kickback. But he said he had spoken with the FBI about an investigation and had agreed to talk further with agents. His attorney, Pete Scalisi, said that he was not sure what the FBI was investigating but that his client planned to cooperate.

“At this point right now, we are not clear as to the focus of the investigation,” Scalisi said. “We have some ideas. However, since they are unconfirmed, I’m not in a position to comment.”

Scalisi, who has offices in Irvine and Riverside and is a friend of Jaramillo’s, said his client was innocent and “100% interested in getting to the bottom of this, and clearing his good name. George is a wonderful person, and he has done great things for the community.”

Jaramillo, named an assistant sheriff in 1998 after managing Michael S. Carona’s successful campaign for sheriff, is under investigation by the Orange County Grand Jury for his handling of criminal investigations involving the teenage son of Assistant Sheriff Donald Haidl.

Gregory Haidl, 18, is accused with two other youths of gang-raping a then-16-year-old girl, an act they allegedly videotaped, during a 2002 party at his father’s home in Corona del Mar. Jaramillo advised the younger Haidl not to talk to Newport Beach detectives investigating the case. In October, he allegedly tried to suppress information that the teen, who is out on bail awaiting trial, and two friends were allegedly caught possessing a small amount of marijuana.

According to KCAL-TV Channel 9 reports, federal investigators are seeking information about meetings between Jaramillo; Joseph Cavallo, the attorney for Haidl’s son; and bail bondsmen.

Sheriff’s officials denied Friday that Jaramillo’s dismissal was prompted by anything but an evaluation by Carona of his executive staff.

Asked if he ever attended meetings with Cavallo and a bail bondsman, Jaramillo declined to answer. But, he said, “I’ve never been involved in any kickback schemes.”

His dismissal came about a week after four Orange County Bail Agents Assn. representatives met with Assistant Sheriff Kim Markuson and other sheriff’s officials to discuss their suspicions about fraudulent bail-bond schemes in the jail system.

According to Stroobant, the middlemen in these schemes are inmates known as “tank workers,” who are solicited by bond companies to give new inmates the phone number of a certain bail bond company. Once the inmate is bailed out, the bond company allegedly pays a commission to the tank worker’s family, which deposits it into his jail account. These tank workers are also making attorney referrals and sometimes threaten violence to ensure compliance, Stroobant said.

The corruption has driven some bail bond companies out of business in recent years. Those who are struggling to survive, including Stroobant, have formed the Ethical and Professional Bail Agents of California.

The group has been complaining to authorities in several counties, including San Bernardino, where a recent sting led to the arrests of more than a dozen people, including two sons of the former sheriff there.

San Bernardino County Deputy Dist. Atty. Cheryl Kersey said there was no connection between Jaramillo’s dismissal and the bail bond case in her county.

At least once in each of the last three years, local bond firms have written to Carona and other sheriff’s officials in Orange County to complain about inmates soliciting other inmates in these alleged kickback schemes, department spokesman Jon Fleischman said.

Inquiries were begun after a Dec. 16, 2002, letter from Binder’s Bail Bonds, and an Aug. 22, 2003, letter from Bob Drake Bonds, Fleischman said. Investigators could not find evidence to substantiate either allegation, he said.

Drake, who is president of the Orange County Bail Agents Assn., said several letters sent to Carona last year were answered by former Assistant Sheriff Rocky Hewitt, Markuson’s predecessor, who took offense at the allegations.

Drake and fellow members went to the Orange County district attorney’s office this year for help, he said, but officials there didn’t take it seriously. The group wanted to hang signs inside the jails warning inmates to be wary of solicitations, but officials refused, he said.

On March 11, the association sent a letter to Carona, warning him that “we’re putting a stop to this now.” Attached to the letter was a copy of the ad that was supposed to run within days, offering a $10,000 reward for information leading to the arrest and conviction of any fraudulent bond agent. The group also threatened to sue.

Within hours of receiving the letter, Markuson, who oversees the jail system, called Stroobant, reassuring her that “we are implementing policy changes and looking into the problem,” Stroobant said Friday.

The newspaper ad was pulled after Markuson called, to “give him time to clean house,” Stroobant said.

“It’s a huge problem and we have not been able to get anyone to police this industry,” said Stroobant, who has been in business for 12 years.

“We’re elated that something is being done.”