THE
BAIL BOND RECOVERY BUSINESS
By Ralph ThomasA
Chapter Out Of: Finder's Fee, The Skip Tracer's
Text
The term bounty hunter puts a picture in the
minds of most Americans of a cowboy from the
wild west days riding a horse with a wanted
poster in his saddle bag and a six gun strapped
around his waist. In those days, the bounty
hunter's job was to bring in a bond skip "DEAD
OR ALIVE". In the days of the wild west, the
bounty hunter was interested in the collection
of finder's fees just like he is today.
A bail bondsmen writes a bail bond on a
defendant. The defendant skips out on his bond.
The bondsmen must then either locate the
defendant or pay the face amount of the bond to
the court. This is the situation when a bounty
hunter is called. His job is to locate the bond
skip and "BRING 'EM BACK ALIVE".
A bounty hunter is almost always an agent for
a bails bondsmen. In order to understand how
bounty hunting works, an examination of the bail
bondsmens's position will be needed. A bail
bondsmen writes bonds for defendants charged
with a crime in order that they may leave jail
pending their hearing and trial. The amount of
bail is set by the court. In effect, the bail
bondsmen acts like an insurance company in that
he guarantees the court that the defendant will
show up for his or her trial. In providing such
a service, the bail bondsman charges the
defendant a fee which is about 10% of the bond.
The bail bondsmen usually works for an
insurance agency who underwrites the bond. The
bail bondsmen is given "powers of bail" that are
worth a certain amount of dollars as far as what
amounts and how many bonds he may write. When a
defendant fails to show up for his trial or
hearing, the bondsman will sooner or later have
to pay out the face amount of the bail bond to
the court. This varies from one month to two
years depending upon the state in which the bail
bondsman operates. If the bail bondsmen does not
bring in the skip, it is more than just a
financial mistake for him. He does not look very
good before the court and in the eyes of the
insurance underwriter. It is to be bondsmen's
advantage to locate the skip, have him
apprehended and returned back to the
jurisdiction of the court.
At first, bondsmen hope that the bail skip
will be picked up by the police. As the time
limit for returning the defendant to the court
comes closer, the bondsmen starts to feel that
the police are not going to pick up the bond
skip. At this point, the bondsman is likely to
call a bounty hunter and bring back the
defendant.
The bondsman works much like an agent for an
insurance company. A new bail bond agent will be
required to maintain what is called a "buildup
fund" in case a bond skip occurs. What the
buildup fund is used for is to pay out bonds to
the courts in the event of a skip. The
forfeiture is called an estreature. The buildup
fund is retained from part of the bail
bondsmen's commission for writing of the bond.
The insurance company will only give the
bondsman a limited amount of bail powers until
his buildup fund reaches a certain amount and he
has a track record of writing good bonds.
The bail bondsman is already in a losing
position when he calls in a bounty hunter. The
defendant has taken off. On the one hand, he
does not want to pay out a large finder's fee.
On the other hand, he needs to stay in good
graces with his insurance company and does not
want to come up with too many losses. At this
point, one often wonders about common "bounty
fees" charges. Well, they are not cut and dry.
Bail bonds can involve large funds. It is not
uncommon for a bond to be set by the court for
$50,000 if the skip is not brought in, the bail
bondsman stands to lose a very large amount of
funds. Circumstances often arise for the
bondsman in which such forfeitures could put him
out of business.
Finder fees for bounty hunters vary according
to the amount of the bond and the difficulty of
the case involved. A $50,000 bound skip could
bring in a finder fee as much as $10,000.
Smaller bonds will bring in a finder fee much
lower. It is only the most established tracers
who are in a position to obtain a retainer fee
from a bail bondsman. Most cases are worked
strictly on a contingency. This means that the
bounty is not paid until the skip is found and
rearrested.
Bondsmen will try and obtain some form of
collateral on the bond risk. This will vary from
deeds to real property from the defendant or his
family to car titles. By securing such
collateral at the time the bond is made, the
bail bondsman reduces his financial risk if the
bondee skips out. It is not uncommon for the
defendant's parents to post such collateral. In
such cases where parents have posted collateral
and the defendant skips, the parents themselves
might want their son located for fear they might
lose their home.
Needless to say, bondsmen are in great need
of bounty hunters. They will jump at a chance to
find a good one. But the bail bond offices are
flooded with every Tom-Dick-and Harry appearing
with a good sales pitch stating that they have a
bounty hunter service. The majority of such
operations have been watching too much
television. It seems large number of men are
attracted to the profession but misunderstand
the experience needed. Bail bond pickups (or
re-arrests) can be performed by any 250 lb
animal. The real need for the bondsmen is a very
good skip tracer. The location of the bond skip
is 98% of the success in the case. There are
only a handful or professionals who are good
enough to perform such a service for bondsmen.
Bond skips tend to be the hardest type of skip
to locate and without expert trace skills the
bounty hunter will just not be successful.
Although there are many reputable
professionals in the bail bond business, it does
attract seedy characters who act more like
criminals than professionals. There are a great
deal of bondsmen who seem to have mob or hood
type connections. Such figures diminish the
reputation of the bail bond industry and cause
confusion with law enforcement authorities.
The defendant who skips on his bond can be
tracked and subdued anywhere in the United
States. At the time he is bailed out by the bail
bondsman, he signs away some of his rights which
include the right of re-arrest by the bondsman.
It is also established by common law that the
bondsman can appoint an agent to perform such a
re-arrest. The authority under which the bounty
hunter and/or bail bondsman operate has been set
by case last in the United States. The highest
authority under which the bounty hunter operates
is from a 1872 Supreme Court decision called
Taylor Vs. Taintor. The case states:
(The bondsman or bounty hunter) Whenever they
choose to do so may seize him (the fugitive) and
deliver him up in their discharge; and if this
cannot be done at once may imprison him until it
can be done. They may pursue him to another
state; may arrest him on the sabbath, and, if
necessary, may break and enter his house for
that purpose. The seizure is not made by virtue
of process. None is needed. It is likened to the
arrest by the sheriff of an escaping prisoner.
Although the right of the bail bondsman
and/or his agent has been long established by
the above court decision and others, it is often
misunderstood. It seems even police officers are
not privy to the actual law. In 1984, two bounty
hunters from Dave Mollison's Freedom Bail Bond
offices were arrested in Ohio on kidnapping
charges in a pickup attempt. In 1982, Tim
Johnson caused an international incident with
the United States State department and the
government of Canada when he brought a defendant
by the name of Jaffie back to the state of
Florida from Canada. Johnson stood trial in
Canada on kidnapping charges.
The bounty hunter will certainly obtain a
copy of the bail agreement from the bail
bondsman before he attempts to subdue the
defendant. He will also likely obtain a power of
attorney from the bail bondsman to act as the
bondsman's agent. Most professional bounty
hunters also keep in their position a copy of
the U.S. Supreme Court's 1872 decision. It is
also important for the bounty hunter to have a
written agreement with the bail bondsmen
detailing his fee before hand.
Bounty hunters can find bond skip cases by
checking the civil records indexes in county
courthouses. The tracer will always find a
number of cases where the courts have filed suit
against the bail bondsman and insurance company
for a bond forfeiture. In one instance, this
author located several dozen cases in less than
one half hour's time. Without obtaining
assignment to the case, three bond skips were
located in two and one half days. The bail
bondsman involved in these cases were contacted
and a huge finder's fee was obtained. As you can
see, you can make money without ever attempting
to pick up on a bond skip.
The bounty hunter will obtain his assignments
by establishing a relationship with bail
bondsmen. Sales calls made at the bail bond
offices in your area will help you secure the
proper contacts. However, it is important to
remember that the romantic aspects of bounty
hunting brings a large amount of callers to the
bail bond office. You will need to build
confidence with the bondsmen before he assigns
you to any case. However, once you establish
yourself as a professional skip tracer, you
should not have much of a problem obtaining
assignments. The trick is to get the bondsmen to
start using your service in the first place.
Once a successful track record is established,
he will contact you on all his tracing needs.
One easy way to get bondsmen to start using
your service is to perform a few missing persons
traces for him free of charge. Just about anyone
will give you an assignment to do when there is
no fee involved. This gives you a chance to
develop the confidence of the bail bondsmen and
once he sees that you can really locate missing
persons, a flow of fee producing assignments
will follow.
Once established, the bounty hunter will be
called by various insurance companies. When a
bail bondsmen goes under, the liability for his
outstanding skips will be placed upon the
insurance company. It seems that there are large
numbers of individuals who attempt to "go for
broke" in the bail bond industry although the
insurance companies check out their agents
before forking over powers of bail to them.
Insurance company offices commonly send out
"WANTED PERSONS POSTERS" just like it was done
it the days of the old west. It will be helpful
to your business to get on the insurance company
mailing list to obtain copies of those wanted
posters.
Needless to say, bounty hunting is not a soft
occupation. It is dangerous work as the tracer's
job is to track and subdue hardcore criminals.
At times, physical force must be used to bring
the skip into custody. The actual tracing
process involves one of the hardest kinds of
traces there is. The bounty hunter is often
dealing with hard criminal elements involved in
drugs, stolen merchandise and prostitution.
Tracing such persons involve the criminal side
of the law unlike most private investigations
which deal with the civil side of the law.
However, for those daring enough with good
skills, huge finder's fees are their reward! |