Federal racketeering lawsuit filed against appointed Sheriff Sandra Hutchens

Orange county bail bondsmen have filed a (RICO) federal racketeering lawsuit against former Los Angeles Sheriff's deputy, appointed Orange County Sheriff Sandra Hutchens who replaced former sheriff Mike Corona by the Orange County Commissioners Court.
 

The federal lawsuit asks for a $100 million in damages for past and expected future business losses. The court documents accuse the Orange County Sheriff's Department for illegally allowing jail gangs to force inmates into using certain bail firms.
This money making scheme was also alleged during the administration of former Sheriff Mike Carona, who was later convicted of witness tampering.
Also named in the suite, is former sheriff Michael S. Carona and ex-assistant sheriff George Jaramillo.

Richard Herman, representing the bond agencies, alleged that Carona and Jaramillo started the bail scam, which he said was later taken over by jail gangs and allowed to continue by this sheriff.
"The criminal gangs run the Orange County jail and are directing through threat of violence where the bail business goes," Herman said.

Sheriff's officials said in a prepared statement they would investigate any allegation of wrongdoing in the jail.
"We will take all appropriate action to see that it is stopped and those responsible are prosecuted," said the statement.
Assistant Sheriff Mike James says the department has been investigating reports of such activity and has submitted a handful of cases for possible prosecution.

Bob Drake, one of the three bondsmen seeking damages, said that the problem has actually escalated in recent years and shows no sign of ending under Hutchens.
"I have clients telling me that deputies are asking people, 'how's business today?'" Drake said. "No one looked forward to a new sheriff more than me. But nothing's changed, in fact, it's gotten more complicated."
The illegal practice of using inmates to get bail referrals is called "capping." The way the scam works is that jailhouse bullies coerce inmates to hire a certain bail company, which kicks back about 10 percent of its share for the referral. On a $100,000 bond, $1,000 goes to the gang member, said Herman.

The money is either put on the gang member's jail account, to use in the commissary, or given to a designated person outside the jail.
"I guarantee you there are some people in the jail making more than you are, on a daily basis," Drake said.

In early 2001, Drake said, he was approached by Jaramillo and attorney Joseph Cavallo, who he said asked them to refer legal business to Cavallo in exchange for payment. Drake said he refused. Jaramillo and Cavallo have acknowledged that meeting but described it as an innocent get-acquainted lunch.
But at least two other bondsmen agreed to steer business to Cavallo, according to court testimony. Cavallo pleaded guilty in 2007 to paying for referrals from bonds agencies.

Jaramillo had earlier pleaded no contest to a charge of perjury in a non-related case. He was never charged in the bail scam. Carona recently was tried on federal charges of corruption, but was convicted of a single count of witness tampering.

County supervisors declined comment to the Journal because of the pending law suit.