Local News in Brief : San Clemente : Bail Denied for Man Indicted in Metals Scam
A San Clemente man indicted on charges of masterminding a precious metals swindle was ordered held without bail Friday.
U.S. Magistrate Ronald W. Rose issued the order in Santa Ana after determining that Michael L. Maddox might flee and could pose a danger to witnesses.
Maddox, 40, was indicted by a federal grand jury for allegedly orchestrating a swindle which took $7 million from several hundred investors.
An FBI agent testified at a brief hearing Friday that Maddox placed a call from the Newport Beach police station after his arrest and instructed someone to remove a gun, business records and “toot” from his home, according to Assistant U.S. Atty. Dwight B. Moore.
The agent understood toot to refer to cocaine, Moore said.
According to the indictment, disclosed Monday, Maddox is alleged to have ordered in 1983 that a disgruntled investor trying to withdraw his money be beaten.
Maddox’s lawyer, James D. Riddet, said he was “shocked “ that no bail was set for his client. Riddet said the government lacked “clear and convincing evidence” that Maddox was a risk. Probation officials who evaluated the Maddox case had recommended to Rose that bail be set at $30,000, Riddet said.
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