In the Reading (PA) Eagle

Sources: State probing former city bail-bond firm

The attorney general's insurance-fraud unit is focusing on the relationship between Capital Bonding and its former CEO and Berks court officials, sources say.

By Dan Kelly
Reading Eagle

The Pennsylvania attorney general's office has launched a grand jury investigation of a city bail-bond company that abruptly went out of business in May, sources said Monday. Investigators in Attorney General Tom Corbett's insurance-fraud unit are probing the relationship between the former Capital Bonding Corp., 525 Penn St., and its former chief executive, Vincent J. Smith of Cumru Township, and Berks County Court officials, the sources said.

Investigators are planning to present their findings to a state grand jury, the sources said.

“We can neither confirm nor deny the existence of an ongoing criminal investigation,” said Kevin J. Harley, Corbett's press secretary.

Smith was unavailable for comment Monday.

County Solicitor Alan S. Miller said he plans to speak to the attorney general's office later this week about the investigation.

Sources said the Pennsylvania Insurance Department, which licenses surety companies and their agents, launched an investigation in 2004 after the Reading Eagle reported that Capital owed Berks County more than $1.6 million in bail-bond forfeitures, that Capital and Smith were being sued by Wachovia Bank for defaulting on a $2 million loan and that Capital's license to write bail had been revoked in Connecticut and New Jersey for deceptive business practices.

Smith no longer is licensed to write bail in Pennsylvania, said Roseanne T. Placey, insurance department press secretary.

“Since we have no authority to launch a criminal action, we have on occasion revoked a person's ability to do business and referred our findings to the attorney general,” Placey said. “But we do not discuss such actions.”

A consortium of insurance companies took over Capital after the companies became concerned about the amount of forfeitures the company had amassed in Berks and across the nation, sources said.

New Jersey officials estimated Capital had as much as $100 million in bail forfeitures in the state. Officials of other states have estimated Capital may owe up to $1 billion in bail-bond forfeitures nationwide.

Capital's advertising boasted that it operated in 38 states, Puerto Rico and Washington.

District Judge Wally Scott stopped accepting Capital bail bonds after the newspaper reported Smith was collecting a one-time state maximum 7 percent fee for bail bonds on an annual basis.

Scott alleged Capital agents were illegally altering court documents to collect the annual premium. Smith claimed the annual fee was permitted under the state insurance law.

http://www.readingeagle.com/re/news/1413492.asp

Contact reporter Dan Kelly at 610-371-5040 or dkelly@readingeagle.com.

_________________
Lance Allen Wilkinson
Recoveries by L.A.W.
Serving since 1984
“What is sought is found... what is overlooked escapes” (Oedipus Rex)

THose who have been around for a while will recall all the debates (disputes) certain of us had with BEA's (and those claiming to be a legit BEA) who contracted with Vince Smith of Capital Bonding. They signed an agreement/contract consisting of several pages then went forth into the market place and attempted to capture some bail jumpers. During the few occasions when they actually did capture a bail skip they then had to fight to get their money; very few were even paid... most didn't get a penny despite all their complaining on the forums.

Most of us explained to the people they were going to get screwed by Smith but they argued and whined and defended Smith/Capital as being a the best bail bond agency in the USA. Some even contracted with Smith/Capital and then denied doing so.

End result: they got screwed! One by one those who argued disappeared.

HGUNNER and myself were instrumental in taking down Smith/Capital in NH. We presented all of the evidence we gathered against Smith and actually attended the hearing held at the Department of Insurance when Vince Smith appeared with three of his attorneys and attempted to maintain his bail bond agency (Acme Bail Bonds) in NH. Smith's attorneys tried to bar us from the hearing to no avail.

Lloyd's of London purchased the file I gathered on Smith and are currently conducting their own investigation on allegations Smith forged a Lloyds of London bond.

I sent a copy of the file to the United States Attroney General in Washington, DC because I believe the RICO statute was custom made for Smith and his gang.

_________________
Lance Allen Wilkinson
Recoveries by L.A.W.
Serving since 1984
“What is sought is found... what is overlooked escapes” (Oedipus Rex)