Cut in Bail Rejected for Teacher, Friend : Judge Keeps Bond at $1 Million for Money-Laundering Suspects

For the second time in a week, a Harbor Municipal judge has refused to lower bail below $1 million for a Huntington Beach high school teacher and his boating companion who are accused in a million-dollar, money-laundering scheme.

Judge Calvin P. Schmidt on Tuesday denied requests by attorneys for teacher James R. Hoyland, 42, of Dana Point and John F. Ford, 41, of Long Beach to lower their bail to $250,000 each so that they might be released from custody. Another judge last Wednesday reduced the bonds from $2 million to $1 million each.

Prosecutors, who asked that bail be raised back to $2 million, said they were concerned that the defendants might jump bond with additional money they may have stashed earlier.

Noting that $1.3 million in cash and gold had already been seized from the men by police investigators, Deputy Dist. Atty. Craig E. Robison said, “I suspect that there are other assets out there that (they) have access to.” Authorities already have confiscated a 53-foot boat and five cars owned by the two men.

Robison said more charges may be filed as prosecutors review additional documents obtained in recent days from five banking institutions which were served with search warrants last month.

Deputy Dist. Atty. Carl Ambrust said the documents “seem to reflect additional (laundering) transactions that have taken place.”

Authorities have said the vast sums of money must be related to drug transactions, but no drug-related charges have been filed against the pair.

In seeking the bail reductions, defense attorneys argued that both men had strong ties to the community, had no previous criminal histories and had property and assets that other family members could use to bail them out of Orange County Jail. The men have been in custody since their Dec. 22 arrest by state and local police investigators as suspects in an alleged money-laundering scheme.

Ford’s parents were willing to put up their life’s savings, while Hoyland’s estranged wife was prepared to offer as security a $250,000 home the couple own in Sunset Beach, according to Keith C. Monroe, attorney for Hoyland, and Barry T. Simons, Ford’s attorney.

Monroe added that Hoyland wants to get out of jail so he can return to work at Edison High School in Huntington Beach, where he has taught for 18 years. If released, school officials said Hoyland could work only in a non-teaching capacity until his case is resolved.

“This man is not going anywhere,” Monroe said.

Schmidt disagreed, saying “the likelihood of the defendant fleeing the jurisdiction is very great in this case.” The judge said Ford, likewise, would probably flee if released. For that reason, the judge said he would not lower bail.

The defendants’ next court date is Jan. 19, when they face arraignment on their charges, which carry a maximum of six years’ imprisonment and $1.5-million fine.