Bail-bond pros get warning from state
KEN DIXON
kdixon@ctpost.com
Connecticut Post Online
Article Last Updated:05/15/2007 06:33:36 PM EDT
HARTFORD — Lawmakers on Monday heard from state officials and members of Connecticut's troubled bail-bond industry who agreed that the state has to reform the process by which defendants are released from jail pending trial.
Bail-bond professionals warned that since the state Department of Insurance is not enforcing the prices that defendants and their families are charged, the market is turning into a free-for-all.
As a result, large, often out-of-state companies are undercutting smaller firms and forcing judges to gradually raise the price of average bonds to the point where $100,000 isn't unusual anymore.
Fights in courthouses over potentially lucrative clients are becoming more and more common, said Mary Anne Casey, a Hartford bail-bond professional who is president of the Connecticut State Surety Association.
"To continue in this fashion hurts everybody," Casey said. "The abuse of our legal system, the mockery of the judicial process and the undermining of all authority has been allowed to happen."
The hearing was the result of the recent arrests of New Haven bail bondsmen on federal charges in connection with an alleged corruption scandal within the narcotics division of the New Haven Police Department.
Lawmakers in a joint hearing of the Public Safety, Judiciary and Insurance committees heard testimony in support of legislation to remove much of the administrative work from the state Insurance Department and put it into the Department of Public Safety.
It would also require bail bondsmen to remit the full amount of a bond's premium to the insurer and then receive compensation, rather than get their pay from the defendant's premium itself.
"The upshot is that we heard from all the affected state agencies and they support the idea and we heard from a cross section of the bond industry and they support the idea," Rep. Michael P. Lawlor, D-East Haven, co-chairman of the Judiciary Committee, said after the 90-minute event.
Under the proposal being researched by lawmakers, the DPS would oversee the bail bondsmen, while the state Department of Administrative Services would take over the management of bond forfeitures from state prosecutors.
Casey and other bondsmen said that in recent years, firms that undercut the state-mandated prices have regularly gone bankrupt, saddling the state with millions of dollars in uncollected bond forfeitures.
With lower prices in the marketplace, often well below the 7 percent that is supposed to be paid to obtain release on bonds $5,000 and above, there is little reason for defendants not to re-offend or even show up in court.
"You can't do bonds day in and day out for 2 percent," Casey said, detailing daily "feeding frenzies" in courthouses throughout the state as bail professionals try to outbid each other.
"In addition to being a rampant problem, it's a major issue of public safety, isn't that true?" said Rep. David K. Labriola, R-Naugatuck, a member of the Judiciary Committee.
Douglas Davenport, a Burlington bail bondsman with more than 35 years of experience, said that while state statutes require defendants to pay $7,150 on a $100,000 bond, $2,000 "is the going rate," but $1,850 in cash is often acceptable.
"It's amazing that I can get priced out of the market," said William Biestek, a bond agent from Meriden. "What's the point of having a bond? Just let everyone go. If the rules aren't enforced, why have rules?"