Ex-Executive of Bekins Nearly Collapses After Kickback Sentencing

The former senior vice president and chief attorney for the Bekins Co. almost collapsed in a Los Angeles courtroom Monday after hearing a federal judge sentence him to three years in prison for his role in a nationwide kickback scheme.

Ronald L. Hartman, 50, had pleaded with U.S. District Judge Richard A. Gadbois to grant him probation, saying he had been “living in purgatory” since being arrested last November.

But Gadbois, saying “this is a terrible case,” responded by telling Hartman, “You were at the highest levels of your profession when you engaged in this scheme. There was no way you were going to walk into this courtroom having abused this high responsibility and position of trust and walk out with a probationary sentence.”

Hartman had pleaded guilty on Jan. 21 to single counts of mail fraud, interstate transport of property obtained by fraud and income tax evasion in connection with soliciting kickbacks from law firms throughout the country that did business with the Glendale-based moving company.

He was charged with joining another Bekins attorney, Louis Friedman, in a scheme to receive kickbacks from law firms that handled business for Bekins in New York, Chicago, Houston, Florida and Arizona over a three-year period that began in 1981. Asst. U.S. Atty. Laurie Levinson said $167,000 was paid in illegal referral fees during that period.

The exact amount of restitution was not set Monday, but Gadbois said he would put a “$100,000 cap” on what Hartman had to pay back, indicating that some of the money illegally obtained had been received by Friedman, who was granted immunity from prosecution after telling authorities about the scheme.

At the time of his Nov. 9 arrest at his Encino home, Hartman was held without bail because of threats to kill himself and to murder Minneapolis financier Irwin L. Jacobs, whose Minstar company assumed control of Bekins in a stock takeover two years ago.

Hartman pleaded with the FBI agents who arrested him to let him escape and then shoot him in the back. After a brief period of psychiatric treatment, Hartman was allowed free on bail.

In his comments leading up to Monday’s sentencing, Gadbois said he had reviewed the file of the case in detail and “had a feeling of absolute horror” as he listened to undercover tape recordings of Hartman’s conversations.

“I could not believe it. If I thought you were really that kind of person I would load these counts up to the max against you. Three years is really cheap,” the judge said.

Hartman was facing a maximum of 20 years and a $110,000 fine on the three counts.

In asking for leniency, Hartman told the judge, “I have been a good citizen before and I know I will be one again.”

He turned ashen-faced and his knees appeared to buckle when Gadbois imposed the prison sentence.

Hartman’s wife rushed to his side and he was helped by friends to a nearby seat.