Judge OKs Petti Bail at $250,000 in Money Plot

Chris Petti, a reputed underworld figure indicted along with businessman Richard T. Silberman on conspiracy and money-laundering charges, won the right Wednesday to be freed on bail pending his trial.

In a seven-page ruling reversing a magistrate’s order, U. S. District Judge J. Lawrence Irving set bail at $250,000, concluding that prosecutors failed to prove that Petti would attempt to intimidate witnesses or obstruct justice if released.

The judge found that, although evidence presented by the U. S. attorney’s office suggests that Petti may have “a propensity towards violence,” conditions can be set to ensure that his release “does not pose a threat to the safety of the community.”

“I maintained that there are not conditions sufficient to prevent a danger to the community, but . . . the court has made its ruling and I’ll live with it,” Asst. U. S. Atty. Charles Gorder said.

Remains Jailed at MCC

Despite Irving’s decision, Petti, 62, will remain in the Metropolitan Correctional Center at least until Monday. U. S. District Judge Leland Nielsen will decide then whether to revoke Petti’s probation for a bookmaking conviction. Petti served nine months for the conviction and has been on probation since 1984.

If Nielsen agrees with authorities that Petti has violated terms of his probation, which is scheduled to expire Tuesday, prosecutors say he could be sentenced to as many as five years in prison--the maximum term he faced in the bookmaking case.

“In my life and in Mr. Petti’s life there is always a tomorrow, and our tomorrow is Monday,” defense attorney Oscar Goodman said, referring to the upcoming hearing before Nielsen. “We’ll do the best we can then, and hopefully Mr. Petti will be out.”

Petti, Silberman and two Los Angeles area men--Darryl Nakatsuka and Jack Myers--were indicted Friday on charges of conspiracy and money laundering stemming from an FBI “sting” involving an undercover agent. The indictment says the 60-year-old Silberman, husband of San Diego County Supervisor Susan Golding, laundered $300,000 provided by the undercover agent, who told him the money came from Colombian cocaine traffickers.

Alleged Middleman

Petti allegedly acted as a middleman in the scheme, while Nakatsuka and Myers served as couriers, the indictment says. All four have pleaded innocent to the charges. They face a maximum of 45 years in prison and fines up to $1.25 million if convicted on all three counts.

Silberman, Myers and Nakatsuka are free on bond ranging from $100,000 to $500,000. But Petti has been held without bail since prosecutors persuaded U. S. Magistrate Roger Curtis McKee that he is a danger to the community.

In support of their argument, Gorder and Asst. U. S. Atty. Carol Lam presented evidence indicating that Petti was plotting the armed robbery of a Las Vegas bookmaker known as “Marty the Jew” when he was arrested on the money-laundering charges earlier this month.

Also, an FBI agent testified that Petti was overheard making plans to extort money from four men who allegedly owed debts to the late Anthony (Tony the Ant) Spilotro. The agent said Petti, who has been described in court documents as an associate of the Chicago Cosa Nostra organized crime family, threatened to have his associates “chop the legs off” of one of the men. Another man allegedly was told he could buy a one-way ticket to Chicago unless he brought money to repay his debt.

Attorney Claims Bias

Goodman, meanwhile, countered in arguments before Irving Tuesday that prosecutors were unfairly singling out his client: “I think because of his reputation, not because of anything he’s suspected of having done, he’s being denied bond,” Goodman said.

Goodman also produced letters from three of the alleged extortion victims, who endorsed Petti’s release and said they had not been threatened by him. The defense attorney told Irving that Petti’s brother and two friends were prepared to offer their property as security for his bond.

In his order, Irving concluded that prosecutors’ argument that Petti should be detained because he poses a danger to the community was not on firm legal ground. Irving said the section of the Bail Reform Act used by the government to request the detention is inapplicable in Petti’s case.

To be detained under that section, a defendant must have committed a crime of violence or be viewed as likely to obstruct justice or attempt to “threaten, injure or intimidate a prospective witness or juror.”

History Important

“Detention (under the section) was clearly meant for defendants charged with or who had a history of committing dangerous or violent crimes,” rather than those accused of money laundering, Irving concluded.

He also noted that prosecutors failed to specifically allege that any witnesses would be threatened by Petti in the event of his release: “The court finds that the government has not established that there is a serious risk that (the) defendant will attempt to intimidate witnesses or obstruct justice in this case,” Irving wrote.

“We believe Judge Irving did the right thing,” said Goodman, who defended former Mayor Roger Hedgecock in his 1985 trial on perjury and conspiracy charges. “Whenever a judge does the right thing, everyone should be happy.”

Referred for Hearing

In making his order, Irving remanded the case to McKee for a hearing on what conditions should be imposed on Petti’s release. Goodman has suggested that Petti’s telephone be removed or its use limited and that Petti be restricted from visiting with anyone the prosecution chooses.

Gorder, who has previously labeled such conditions difficult for the government to enforce, said he had not decided what limits he might seek to place on Petti’s release.