Miami Criminal Defense Lawyer Blog

A local businessman was charged and arrested for running a multi-million dollar investment scam. The case is like so many that have occurred over the past couple of years. Considered a philanthropist, he donated large sums of money to the University of Miami. A federal indictment charged Nevin Shapiro with one count of money laundering and one count of securities fraud. The Securities and Exchange Commission also levied civil fraud charges. Shapiro based on the charges is facing up to 20 years in prison and fines of up to $5 million. He surrendered to federal authorities in New Jersey where he appeared with counsel from a criminal defense law firm. Shapiro was granted a $10 million bond by the federal magistrate at the pre-trial detention hearing.

A pre-trial detention hearing occurs one or two days after the initial arrest is made by law enforcement. The defendant is entitled to appear before a federal magistrate and request a bond or other forms of pre-trial release. The federal magistrate will consider two factors in determining whether pre-trial release is appropriate. First, the defendant's risk of flight will be analyzed. The court will consider an individuals ties to the community, such as property ownership, location of family, travel history and overseas bank accounts. If the court believes that a defendant is not a flight risk, typically they will require the defendant to surrender travel documents such as passports and visas to prevent any travel outside of the country. Secondly, the court will consider whether the defendant is a danger to the community. The court will mostly consider the charges pending against the defendant. White collar crimes are more likely considered not to be a danger to the community as opposed to drug trafficking or other crimes which involve violence or will cause physical harm to the general public.

If the federal magistrate determines that a person is not a flight risk or a danger to the community, he will set a bond commensurate with the charges. There are several types of bonds that can put in place by the magistrate including personal surety and corporate surety bonds. Personal surety bonds allow for the defendant or family members to sign over homes and property that are subject to forfeiture if the defendant fails to appear in court. Corporate surety bonds require a bondsman to post a percentage of the total bond to secure a defendant's release. On many occasions those bonds are preferred by the court because if the defendant fails to appear at a hearing, the bondsman is in jeopardy of losing the entire amount of the bond. If the defendant fails to appear, the bondsman or his representatives will seek out the defendant to protect their interests. The court can also imposed a combination of different types of bonds to ensure the defendant does not flee the jurisdiction.

Shapiro was granted the bond despite the large amount of money involved in the alleged scheme to defraud. The indictment alleged that he sold securities through his investment firm's wholesale grocery distribution business. He promised investors an annual 26% return on their investments. As with all Ponzi schemes, much higher than normal annualized returns are a signal that something is amiss. The indictment alleges that Shapiro used stolen funds to support a lavish lifestyle. He purportedly spent investors funds on jewelry, homes, yachts, tickets for sporting events and made large contributions to the University of Miami. Shapiro is now added to the list of people charged with defrauding investors.

U.S. Charges Miami Sports Donor with $900 Million Fraud, Reuters,com, April 22, 2010.

A man accused of selling video games to a South American business with alleged terrorist ties appeared in court for his initial bond hearing. Khaled Sadafi of Doral, Florida, appeared before a U.S. federal magistrate to face accusations by the federal government that he is supplying goods to a shopping mall operating as a front to a Middle East terrorist group. Sadafi was charged in a terrorist related indictment last month. After lengthy arguments by the government and his Miami criminal attorney, the magistrate granted a three pronged bond that will assure the defendant's presence in court. The bond was set at $1.55 million which requires him to pay $100,000 collateral to the clerk of court with the remainder of the bond being secured with his home and other personal assets.

At a typical federal pre-trial detention hearing, a magistrate will determine if pre-trial bond is appropriate for a particular case. Of course, every case is different and the court must consider two factors in determining whether a bond should be set. First, the court must consider whether the defendant is a danger to the community. Significant drug related cases like cocaine trafficking, heroine trafficking and drug importation charges are often considered to be dangerous to the community on the whole. However, qualified defense firms are often able to secure bonds on these types of cases. Charges involving firearms and terrorist linked charges are considered crimes dangerous to the community and are much more difficult charges for which to secure a bond.

The second factor the magistrate must consider is a defendant's ties the community or risk of flight. The court will consider a defendant's citizenship, property ownership and whether family members reside in the jurisdiction. If the court deems a defendant not to be a flight risk, the individual will be forced to surrender travel documents such as passports and visas. The defendant will also be required to remain the federal district where he or she is facing charges. A defendant will much more likely receive a bond if the defendant owns a property, such as a home, in the jurisdiction. Ownership of a business in good standing will also help secure a bond. A federal magistrate will look favorably on a defendant if they reside with a spouse and children from the marriage. A negative factor could be frequent travel in and out of the country or large bank accounts overseas. In a nutshell, the defense attorney must convince the magistrate that the client's ties to the community will assure his or her presence in court.

In Sadafi's case, his attorney argued to the court that he owned a home in Doral for the past ten years and resided with wife and four children. Despite the seriousness of the charges, the magistrate decided to issue a bond, albeit in a hefty amount. Sadafi along with two co-defendants were arrested on terrorist related smuggling charges for shipping Sony Play Stations and digital cameras to a Paraguayan mall allegedly linked to the terrorist group, Hezbollah. All three co-defendants along with their import-export businesses were named in the indictment. The indictment alleges that the three individuals violated a post-911 law which prohibits doing business with other businesses connected to U.S. designated terrorist groups.

Miami-Dade Businessmen Accused in Terror Case Get Bond, The Miami Herald, March 2, 2010.

Rather than appearing at the Grammy Awards later this month, reggae singer, Buju Banton, will be spending his time in the Tampa federal detention center, at least for the time being. Bantom appeared with his Miami criminal lawyer before a federal court magistrate for his arraignment and pre-trial detention hearing.. With the assistance of his defense lawyer, he entered a not guilty plea to the charge of conspiracy to traffic cocaine and cocaine trafficking. Federal prosecutors requested that Banton be held without bail. Banton is facing at least a ten year mandatory prison sentence.

Banton's Miami criminal defense attorney did not oppose the motion for pre-trial detention because his is being by an immigration detainer. Even if Banton was granted a bond by the federal magistrate, the immigration hold would prevent him from leaving federal custody. It has become the custom in Miami and South Florida that individuals arrested who are in the United States on student or work visas will automatically be issued an immigration detainer. Banton must retain an immigration attorney to appear in court and seek a removal of the detainer or in the alternative seek a bond. Once the detainer has been removed, Banton will be free to appear in federal court and seek bail at a bond hearing.

Because Banton has been charged with cocaine trafficking, a Nebbia requirement will also attach to any bond he granted. In Florida state and federal court, all drug trafficking cases that are bond eligible require more than the mere posting of the bond. The defendant must provide documentation proving the cash and collateral put up for the bond did not come from the proceeds of an illegal enterprise such as drug trafficking, mortgage fraud or Medicare fraud. Banton should have no problem meeting the Nebbia requirement if he is granted a bond because he can show federal prosecutors and the judge that money and property put up as collateral on the bond come from his lucrative music business.

Banton's criminal case is set for trial in February, 2010. Whether he remains in custody during the pendency of his case remains to be seen. The indictment alleges that Banton contacted a confidential informant "CI" and set up a cocaine deal involving several kilos of cocaine. The alleged transaction occurred at a warehouse in Sarasota that was equipped with audio and video surveillance. Law enforcement often try to consummate drug deals at warehouses they own and operate to catch the transaction on surveillance cameras. Certainly, a jury would find a video on a cocaine or marijuana deal more convincing than a cops testimony.

Reggae Singer Banton Held Without Bail on Drug Charges, Tampa Bay Online, January 7, 2010.