New Stink Arises In Lincoln Heights Over Ex-Police Chief Ron Twitty's Regime: Unopened Mail Behind $82,000 Default Judgment

Lawsuit Delivered, Answer Was Late

CINCINNATI (TDB) -- Lawyers for the predominantly African American village outside Cincinnati say in a court filing that three certified letters about a lawsuit against the police department sat unopened for weeks.  The letters were discovered in former Police Chief Ron Twitty's office on Nov. 2, nearly a month after he quit.  Postal receipts show the certified mail from Court Clerk Patrician M. Clancy's office was delivered  on Aug. 23.  The village defaulted on a lawsuit because it failed to answer the claim on time -- Lincoln Height now is fighting to have the default set aside.  Twitty resigned as Lincoln Heights' police chief after it was discovered he failed to maintain certification as a police office in Ohio.  Details are in this Cincinnati Herald story, which noted he left the Cincinnati Police Department in 2002 after he was accused of failing to report damage to his city-owned car.  Twitty pleaded no contest to a misdemeanor offense involving obstruction of the damaged vehicle investigation.

Lincoln Heights'  lawyers Dawn M. Frick and Jeffrey C. Turner contend in a motion to set aside the default judgment that the case involves "excusable neglect or inadvertence."   They said the village did not willfully fail to answer the complaint.  More of the lawyers' argument is after the jump.

Vice Mayor Roxanne Qualls To Court Clerk Patricia Clancy: About That $1 Million You Owe Cincinnati, Check Please!

When Can City Expect Funds From Clerk?

CINCINNATI (TDB) -- With the city facing a $60 million hole in its budget -- and 144 Cincinnati police officers facing the loss of their jobs -- Cincinnati Vice Mayor Roxanne Qualls is pressing the county court clerk's office to deliver forfeited bail bond funds owed the city.  Hamilton County Clerk of Courts Patricia M. Clancy, a Republican, said last month that at least $960,000 is uncollected and due the city police department under court orders.  Qualls, a Democrat and Charter Committee member, wrote Clancy back five days ago seeking a timetable that will detail exactly when Clancy's office will start delivering the money.  Some of the uncollected bail bond forfeitures date back to the 1990s.  Qualls said "there is money owed to the City of Cincinnati" and every cent is needed -- especially with cops looking at layoffs.  Qualls emphasized the urgency of her request.  There are records showing the county clerk has failed to collect forfeited bonds for years.  The money -- which is owed by defendants and bondsmen hit with forfeitures when criminal suspects dodge a court date -- is earmarked for distribution to prosecutors and law enforcement agencies.  Here's an excerpt from Qualls letter to Clancy:

"Your letter states that the City would be entitled to receive a portion of the bond forfeitures collected based upon certified judgments from bail bondsmen and their insurance carriers of $960,000.   The letter also says that your office has been working with the Hamilton County Prosecutor's office to collect on the certified judgments against bail bondsmen and their insurance carriers, and that you expect a successful resolution in the near future.  Is the $960,000 amount the total amount, or are their other forfeitures that will be determined through an audit?  Has the city ever received any funds based on certified judgments in the past?

I am requesting documents of the $960,000 in certified judgments, as well as what portion of the amount is due the city at this time, the amount of the collections, and a time frame for the Cincinnati Police Department (CPD) to expect the funds that are due it. . . I am sure you understand the urgency of this request since City Council will be making decisions about potential cuts to our public safety personnel over the coming weeks."

Hamilton County Judge Nadine Allen Victim of Cincinnati Newspaper Smear: Enquirer Info About Bail Bond Ruling In Dispute

 Newspaper Blames Dem For GOP Scandal

 [UPDATE: Full text of Jugde Nadine Allen's letter to Enquirer Editor Tom Callinan that demands a retraction.  See below.]
CINCINNATI (TDB) -- A Cincinnati Enquirer story Nov. 15 about the unfolding bail bond scandal in the Hamilton County Clerk of Court's Office tries to shift blame for the $2.1 million mess from GOP officials to a Democratic Common Pleas Court judge.  But the newspaper's reporting doesn't appear to stand up when measured against public records easily available in online court filings.  In other words, the Enquirer swallowed hook, line and sinker a Republican contrived effort to discredit Judge Nadine Allen.  The GOP spin looks to have made the Gannet Co. Inc. newspaper so dizzy it fell down on the job.  Judge Nadine Allen intends to hold a press conference today -- which is an unusual move for a judge -- to point out gaping holes in the Cincinnati Enquirer's story.   Here's what The Daily Bellwether has gleaned so far:

The Sunday story by Reporter Kimball Perry said $2.1 million in forfeited bail bonds has been uncollected by the clerk's office.  It said Hamilton County is going to have to refund $105,000 to a bailbonding company because Judge Nadine Allen set aside a forfeiture last month.  The story said the county doesn't have money available to pay back the bonding company.  The story -- and this is really the guts of the slam against Nadine Allen -- reported the $105,000 forfeiture had been distributed to police and prosecutors.  Truth is, that never happened.  Court records show the county had a lien against the bonding firm and the criminal defendant who jumped bail.  The lien represented an unpaid debt that had been on the books for three years.  If the county had distributed the money, there would not be a lien because legal procedure requires the lien to be cancelled when a debt is paid off.  It would be massive incompetence for the clerk's office to maintain liens against people who had cleared their debts.

Here's the Enquirer version with the disputed statements in bold face:

"In 2006, Ismial Salaam was arrested and jailed on drug charges.  A judge set bond at $105,0000.  A bond agent posted that bond.  Salaam was released and told to show up in court.  Instead, he ran.  A judge ordered the $105,000 forfeited on June 12, 2007.  That money was given to the prosecutors and the police department that arrested Salaam.

"Salaam then was arrested in June 2009.  When he was brought to court, his bond agent asked for the return of the $105,000 bond.  Common Pleas Court Judge Nadine Allen agreed on Oct. 6 and ordered the money returned to the bond agent.  'The money's spent,' [Assistant Prosecutor Mike] Florez said.  'I don't know how you're going to get it back.'"

Lien For Bail Bond

However, there is nothing to show the money has been spent.  In fact, the records indicate it was never collected.   You can look at the lien that was pending for three years.  Additionally, The Daily Bellwether has a Nov. 19, 2009 computer printout prepared by the Clerk of Court's office that lists uncollected bail bond liens.  The $105,000 is shown as an open debt.  That means the money wasn't given to the police and prosectuors as the Cincinnati Enquirer reported.  And it means that the Cincinnati Enquirer --  for some reason -- wrongly tried to make Judge Nadine Allen a player in the scandal.

[UPDATE: 2:43 pm -- Judge Nadine Allen has just finished her press conference.  She is demanding a retraction and public apology from the Cincinnati Enquirer.  The lawyer for the bail bonding company, Bradley Hoyt, was present and said that no money had been distributed to the police or prosecutors.  Hoyt said no money had been collected from the bonding company by the clerk of court's office on the forfeited bond, therefore nothing was available to distribute.  Hoyt said he had not been contacted by anyone from the newspaper prior to the story's publication.  He said the portion of the story that referred to Judge Nadine Allen contained inaccurate information.  The judge was drafting a written demand for the retraction.  Her letter was addressed to the Cincinnati Enquirer's editor, Tom Callinan.  In the letter, she says that the newspaper had damaged her reputation as a judge and published information with a "reckless disregard for the truth."   She did not say she was considering legal action, but the wording was stern and could open the doors to a possible defamation claim.]

[UPDATE: 11/16/10, 9:49 AM --  Here's the letter Judge Nadine Allen has sent to Cincinnati Enquirer Editor Tom Callinan that demands a retraction:   

"Tom Callinan

Editor & V.P./Content & Audience Development 

The Enquirer/Cincinnati.Com

312 Elm Street

Cincinnati, OH 45202

"Dear Mr. Callinan,

"I write to you in response to your November 13, 2010 article, “Bond agents owe $2.1M,” reported by Kimball Perry.  I request a public apology and retraction of the clearly false and misleading statements.  The statements have caused damage to my reputation as a Hamilton County Common Pleas Judge. The article contained reckless statements that were made without regard for the truth.

"The article states that, 'A judge ordered the $105,000 bond forfeited on June 12, 2007.'  It goes on to falsely claim, 'That money was given to the prosecutors and the police department that arrested Salaam.'  This claim is false.  No money was ever collected and no money was ever dispersed to the Prosecutor or the police department.

"The article singles me out, stating that, 'Common Pleas Court Judge Nadine Allen [...] ordered the money returned to the bond agent.'   Again, this statement is false.  No money was ever collected and no money was ordered to be returned to the bond agent.

"A simple review of the court records would have revealed that:

·        No cash was deposited with the Clerk of Court by the bond agent, the bond agent’s insurance company, or the defendant;

·        No cash or funds were disbursed to the Prosecutor’s office or the police;

·        Dale Bernhard of the Hamilton County Prosecutors office stated, on the record before Judge Allen, that none of the forfeited bonds had been collected or disbursed.

"The Enquirer’s decision to single out me while not mentioning the other judges that have relieved a bond looks like an effort to smear my good reputation.  Additional research would show that since 2009 at least three other Hamilton County Common Please Judges have relieved this same bond agent and insurance company of bond forfeiture judgments.  I am willing to provide you the name of the other Judges, if you're interested.

"I eagerly await the retraction and a public apology.

"Judge Nadine Allen

"Hamilton County Court of Common Pleas"

So far, there does not appear to be any word from the newspaper about what action, if any, it will take.  I have asked the judge to keep me posted.  Stay tuned.]

Hamilton County Commissioner Todd Portune: 'Matters Very Much Amiss With Forfeited Bonds'

CINCINNATI (TDB) --  An e-mail from Todd Portune says the clerk's office appears to have stalled collections and and mishandled procedures for collecting millions of dollars in forfeited bail bonds.  Portune wants Sheriff Simon Leis's office to take an active role in efforts to find out what has gone wrong.  Portune said the bail bond scandal involves "potential violations of regulation, policy or law . . ." and had been the subject of a review by county officials in 2009.  The Daily Bellwether has a copy of the e-mail, which was sent to Republican Clerk of Courts Patricia M. Clancy, whose office is responsible for collecting and issuing bail bonds:

"Dear Patty:

Last September 2009 Kathy Binns and I met with you and John Williams to discuss several irregularities in connection with bail bondsmen and uncollected forfeited bonds in Hamilton County .  You recall we shared with you the results of an investigation we had conducted with the help of others.  In light of severe county budget concerns and also potential violations of regulation, policy or law, we wanted to make certain the matter was addressed.

You and John Williams assured us that the matter was being addressed and that your office was on top of the matter along with the Prosecutor’s office.  It has come to my attention that matters may still be very much amiss with forfeited bonds not collected along with certain other practices that are either wrong or unlawful being conducted.

I am writing to you for the purpose of asking that we meet to discuss these matters and the efforts to put an end to the practices; to pursue those who may be engaged in wrongful practices; and to collect all moneys due Hamilton County. In particular I would like to know what the prospects are of collecting on amounts due in time to utilize sums in connection with Hamilton County ’s 2011 budget or to disburse to such other parties or political jurisdictions that are entitled to receive a percentage share of the same.

Unlike our previous meeting I believe it will be important to also have the assistance of proper representatives from the Sheriff and Prosecutor’s office to discuss the status as well as the county’s options in this matter.

Thank you for your assistance in connection with this important issue.

Sincerely yours, "

Todd Portune

President of the Board

Hamilton County Commissioners

Hamilton County Clerk of Courts Patricia Clancy Confirms The Number: Bail Bondsmen Owe Cincinnati $1 Million In Forfeitures

Cincinnati Is Owed A Wad

CINCINNATI (TDB) -- The clerk's office reports the city's share of uncollected bail bond forfeitures is at least $960,000 -- and is likely to be substantially more.  That as-yet unknown sum reflects debts involving property bonds where no action has been taken to seize real estate.  All of the bonds were posted by accused criminals who did not want to sit in jail while awaiting court dates and trials.  Money from forfeited bonds is earmarked to combat drug crimes on Cincinnati's streets.  But the cops haven't been getting all the cash owed, apparently because of bottlenecks at clerk's office in the courthouse.  The bonds were forfeited because the suspects didn't keep their written guarantee to show up in front of a judge.  County officials are supposed to grab money and property posted as bonds, but have been slow to act -- some of the forfeitures date back to the mid-1990s.   Hamilton County Clerk of Courts Patricia M. Clancy -- whose office is responsible for bail bonds -- disclosed the sum owed to the City of Cincinnati.  Clancy was responding to Cincinnati Vice Mayor Roxanne Qualls, who last month said the money was needed to pay for police to fight street crime.  The city faces a $50 million budget deficit and may have to law off cops.  Clancy wrote Qualls yesterday:

"In response to your questions, the City would be entitled to receive a portion of the bond forfeitures collected based upon certified judgments from bail bondsmen and their insurance carriers of $960,000.  This amount represents the gross amount of the bonds, and does not reflect the possible reductions permitted under the statute.  The City's portion of the bond forfeitures against individuals (parents and family members who posted property) will be provided to you shortly.  The Clerk of Courts has placed liens on the individuals and the property posted,but has not taken any action to foreclose on real estate of the parents and family members to date."

Clancy said she's got lawyers on the job:  "Also, the Clerk of Courts has been working with the Hamilton County Prosecutor's Office to collect on the certified judgments against bail bondmen and their insurance carriers.  The Prosecutor's Office met with the Common Pleas and Municipal Judges on this issue and is working with the bondsmen and their insurance carriers to collect on the certified judgments.  We look forward to a successful resolution in the near future."

Any money collected on a bond forfeiture goes to the city if the city prosecuted the case through its law department.  If the County Prosecutor handles the criminal case -- a drug case, for example -- the money is split with 80% of the forfeited bond going to the Cincinnati police, and 20% to the prosecutor's office.  The Daily Bellwether has been reporting on the uncollected bail bonds since last month and you can read all the earlier posts by by clicking here. There are a lot of comments -- mostly anonymous -- that indicate there is a backstory that has yet to unfold publicly.

Cincinnati Vice Mayor Roxanne Qualls Wants Bail Bond Accounting: Sees $$$$ Due City Cops To Battle Neighborhood Street Crime

Qualls Says Show Me The Money

CINCINNATI (TDB) -- Roxanne Qualls heads the City Council's budget and finance committee and is looking for every penny available to close a $60 million budget gap.  Qualls has written Republican Clerk of Courts Patricia M. Clancy seeking a "formal accounting of cash bonds that are uncollected and the amount due to the CPD" -- Cincinnati police division.  The letter was hand-delivered to the clerk's office last Friday.  So far, Qualls has not gotten a response.  The Daily Bellwether has been reporting for nearly two weeks that Hamilton County judges have ordered cash bonds forfeited and that more than $4 million could be due and owing. Some of the uncollected bail bond money dates back to the mid-1990s.

 Meanwhile, there is a new twist to the bail bond scandal that seems to involve missing records.  Last week, the clerk of court's office released a computer printout showing it had 56 separate felony case where forfeited bonds had not been collected. But it now appears the list wasn't entirely accurate.  Perhaps there was a book keeper error, perhaps a mistake.  Or maybe the public records are just not up to date.  Or maybe something was being hidden.   



Judgment Missing from List 

 The Bellwether noticed that Case No. B-0802589 was not on the list made public last Thursday. The list was released in response to a freedom of information request filed by Hamilton County Democratic Chairman Tim Burke, who asked to see every forfeited bond that was owed. There is a $100,051 judgment for a forfeited bond in B-0802589 that was put on the books last year. The judgment has not been cancelled, according to county records. The case involves a convicted sex offender -- now a state prison parolee -- who failed to show up on court on charges that accused him of failing to register in Hamilton County. Interestingly, that offender had been shipped off to prison in an earlier criminal case, B-0403402, decided by Hamilton County Common Pleas Judge John Andrew "Skip" West. The plot thickens a bit because West forfeited a $20,000 cash bond after the defendant didn't show up for a court date. And that forfeiture is still owed to the county. Bottom line: one sex offender accounts for $120,000 in uncollected bail bond forfeitures involving two separate cases that date back six years.

Hamilton County Bail Bond Scandal Update: Clerk Of Court Releases Printout Showing Bondsmen Owe $2M, Just $59,746 Paid

$2 million owed, pennies collected

CINCINNATI (TDB) -- A computer printout from Hamilton County Clerk of Court Patricia M. Clancy's office shows $2,053,140.90 in forfeited bail bonds is listed on the books as debts owed by bondsmen who posted sureties to get accused felons out of jail.  When the accused felons skipped criminal court dates -- or fled town -- the bonds were forfeited.  In fact, the printout shows just $59,746.37 has been collected in 56 forfeiture cases, which go all the way back to 1998.  Clancy is a Republican who took office 22 months ago -- she inherited the debts.  What is not yet clear is what is being done to collect the $2 million.  Judges signed orders -- the oldest goes back to Aug. 13, 1998 -- that should have sent the money to law enforcement agencies and prosecutors to fight drugs on the streets of Cincinnati and its suburbs.  Yet the forfeiture orders don't seem to be enforced very aggresively, and collection efforts lag.

Hamilton County Democratic Chairman Tim Burke got the printout -- which list debts owed through Oct. 14 -- by filing a freedom-of-information request last week.  Clancy's office released the list in response to a query seeking:  "Any list or compilation showing open bond forfeitures and sums owed to the County, by whom and when such sums became due as a result of bond forfeitures."

The Daily Bellwether has previously done items about uncollected bonds.  You can read them by clicking here and here. While at the courthouse yesterday, The Bellwether spoke with Clancy's top deputy, John Williams, a Republican who is running for Juvenile Court judge this year. Williams said officials haven't actively pursued collecting some forfeited bonds owed by bondsmen because of concerns that criminal court judges would set aside the forfeiture orders. He said the county would not have the cash to repay overturned forfeitures if the money had been disbursed to law enforcement agencies. Instead, the clerk's office has chosen not to collect the money while carrying the debts on its books as unpaid. There are rumors the feds are investigating, but those rumors remain unconfirmed. The Dems sense scandal in the air and are likely to press the issue in the days ahead. Stay tuned.

More On Bail Bond Scandal In Hamilton County: Cincinnati Police Didn't Receive Court-Ordered $$$$ Forfeitures

CINCINNATI (TDB) -- At a time when crime is high and up to 112 cops face layoffs due to pinched government budgets, it seems absurd that large sums earmarked for law enforcement haven't reached Cincinnati police and suburban departments.  The Daily Bellwether has located records indicating nearly $2 million in forfeited bail bonds is due and owing.  There could be more; the $2 million is what this blog tracked down in 50 forfeiture cases dating back to the 1990s.  One bail bond company appears to have 26 unpaid forfeiture judgments -- the math indicates the judgments total about $1.05 million.  The business still seems to be writing bonds.  Last week, the courthouse was buzzing with rumors of a federal investigation about a financial scandal centered on uncollected bail bonds.  But the issue goes deeper -- it impacts public safety and keeping cops on the streets.

Officials at the Republican controlled courthouse appear to know they have a problem.  Hamilton County Clerk of Courts Patricia Clancy said in budget documents filed with the county commissioners last month that she was going after the forfeitures:  "The Clerk is also working with the prosecutor to recover forfeited bonds monies that remain uncollected." 

The topic of uncollected bonds received one sentence in a five-page, single-spaced document that admits in its own words local government faces a serious "budget crisis."  Talk about burying an issue.

Why wasn't the recovery effort pursued earlier?   The Bellwether has found records indicating that one of the uncollected bonds dates back to 1991, another to 1997.  Many of the uncollected forfeitures date back to years when Republican County Commissioner Greg Hartmann was serving in the court clerk's office. There are numerous examples of money owed to the Cincinnati police, who are supposed to use forfeited bail bonds to target drug crimes.  But they haven't gotten all the cash that is supposed to come their way from the court clerk's office.  Here's one example from Case No. B 08-05552-B, which involves an accused drug trafficker from Detroit who posted a $200,000 bail.  When the person didn't show up in court, Hamilton County Common Pleas Judge Melba Marsh ordered the $200,000 forfeited.  She signed the judgement entry on April 2, 2009 and said about $160,000 should go to the Cincinnati cops.  Here's are a few pertinent paragraphs from the court order:

"WHEREFORE, it is further ordered pursuant to R.C. 2925.11(E) that the forfeited bond funds on deposit with the Clerk of Courts be paid as follows:
 "First, to the Clerk of Courts to satisfy the costs on the bond forfeiture proceeding; then the remaining balance is to be divided eighty (80%) to the Cincinnati Police Department and twenty percent (20%) to the Prosecuting Attorney of Hamilton County, pursuant to R.C. 2925.50.  In any additional funds come into the possession of the Clerk of Courts relative to the judgment on Bond Forfeiture, those additional funds are to be divided on the same pro rata basis as set forth above.  The aforementioned funds shall be used to law enforcement efforts pertaining to drug offenses."

While that seems to indicate the money was "on deposit," the reality appears to be different.  Four months later, the Clerk of Court's office obtained a certificate of judgment for $200,009 that named the bondsman and the defendant.  It is a legal document showing the debt remains on the books.  Somehow an accused heroin trafficker from Detroit was caught in Cincinnati, posted bond to get out of jail, skipped town, and has yet to deliver the $200,000 a judge ordered forfeited.  And the forfeiture was supposed to go to the Cincinnati police to fight drug crime on the streets.

Here's another example, Case No. B09-004059.  Common Pleas Judge Dennis Helmick ordered an accused drug trafficker to forfeit a $100,000 bond after he failed to show up.  The trafficker is still at-large.  Helmick said on May 1, 2008 that $80,000 should go to the Cincinnati police "for law enforcement efforts pertaining to drug offenses."

That $80,000 doesn't appear to have reached to the police for the fight against street crime.  A certificate of judgement shows the debt is still on the books unpaid.

Scandal Rumors Percolate At Hamilton County Courthouse: Feds Said To Be Probing $4 Million In Uncollected Bail Bonds

CINCINNATI (TDB) -- The wraps seems to be coming off a closely guarded secret: Feds are reportedly poking around the courthouse to learn if up to $4 million was scammed from the public coffers.  Allegedly, the missing money involves forfeited bail bonds that haven't been collected through the court clerk's office in Hamilton County.  If true, this is huge.  The rumor mill cranked up after U.S. District Judge Michael R. Barrett yesterday placed on hold a civil lawsuit that accused county and state officials of  blocking bail bondsmen from soliciting business on the courthouse grounds.  While that lawsuit, Case No. 1:10cv285, has nothing to do with the rumored FBI investigation, it indirectly may have played a role by stirring interest in Cincinnati's bail bonding operations.

WKRC-TV, Channel 12 has reportedly been working on an investigative news story about a massive breakdown in procedures to collect forfeited bond money.  In Cincinnati, judges set bonds.  But if  accused criminals skip town or dodge their court dates, bond money is forfeited.  The paperwork processing the forfeitures is done in the Hamilton County Clerk of Court's office.  At this point, it is not clear if there was an administrative breakdown or corruption.  Another possibility:  Nothing is amiss, the rumor mill has just gone wild.  But the opinion here is that there is more to this than smoke.  Reportedly, Democratic officials in Hamilton County are getting ready to file public records requests with Court Clerk Patricia M. Clancy that would seek open documents about bond forfeitures and sums owed to the county.  In addition, the Democrats are said to plan on seeking all records showing payments made by bonding companies on forfeitures since Jan. 1, 2009.  Interestingly, the Democrats could turn up public records requests made by Channel 12 -- Cincinnati's ABC affiliate -- during the course of any digging done by the TV station.  They also might find out what the FBI is up to, if anything.

All this rumor and etc. comes at a time when John Williams, a top aid to Clancy, is running for a seat on the Hamilton County Juvenile Court.  Williams is a Republican who has a Democratic opponent.  Nobody suggests that Williams has done anything improper.  The Daily Bellwether has known Williams for years: His reputation is impeccable, he's always been ethical, he is a square shooter.  Williams, a former prosecutor, was the Hamilton County Board of Elections director during some very partisan contests, especially the 2004 Bush v. Kerry contest.  He emerged with his reputation intact.  But if there really is a scandal about millions of dollars in uncollected bail bond money, the juvenile court judge campaign would be impacted.  Political opponents would move quickly to depict Williams and Clancy as asleep at the wheel, or inept.  The Daily Bellwether is of the opinion that the efforts to seek records about bail bonds dating back to Jan. 1, 2009 are aimed at Williams and Clancy -- she took over the clerk's office after winning the job in the November 2008 general election.

The flap seems to have its roots in an Ohio Department of Insurance proceeding against A-1 Bail Bonds owner Debra Henneke, who is challenging her bail bondsmen license revocation. Competitors and clerk's officials said she was soliciting business on the courthouse grounds.  Henneke fought back.  She hired lawyer Robert Newman, and apparently private investigators who reportedly uncovered the irregularities.  At least, that's what is being spun around the courthouse and political circles.  In his ruling yesterday, U.S. District Judge Barrett said he was temporarily staying out of the litigation to allow bail bondsmen to solicit business from bail bondsmen in the courthouse:  "This matter shall be stayed pending the conclusion of state administrative proceedings brought against Debra Henneke."

UPDATE: 10/7 4:22 pm -- CityBeat has heard the rumors, too. Kevin Osborne is reporting that Hamilton County Democratic Chairman Tim Burke has filed a formal public records request seeking  fnancial records about bond foreitures at the GOP controlled courthouse.  The Bellwether has heard from two sources today who said there is a federal probe.  They also said Channel 12's Jeff Hirsh has been working on the story.  I tried to call Hirsh for comment.  No luck.

Insuror Says Defense Lawyers Overbilled Millions In Chiquita Death Squad Cases: U.S. AG Eric Holder's Law Firm at Center of $7.7 Mil Clash

CINCINNATI (TDB) -- Almost $4.5 million in attorney fees and expenses billed by Atty. Gen. Eric Holder's former law firm in DC are being challenged as "excessive" in a Cincinnati lawsuit. Covington & Burling LLP was retained to defend Cincinnati-based Chiquita Brands International Inc. against federal criminal charges and civil lawsuits that it financed deadly right wing terrorists in Colombia on its banana plantations. Court records filed in the Cincinnati lawsuit -- and obtained by The Daily Bellwether -- indicate 1,290 people were allegedly killed or injured by the armed paramilitaries in Colombia.

The lawsuit about the legal fees is styled as Chiquita Brands International Inc v. National Union Fire Insurance Co. of Pittsburgh, Pa. Hamilton County Common Pleas Judge Steve Martin is presiding. The Case No. is A 0808934. The court documents show $7.7 million in fees and expenses were billed after Holder, a white collar crime specialist then in private practice, was retained in November 2006. Holder was paid $770 per hour: "Pursuant to the November 14, 2006 engagement letter, Covington offered and Chiquita accepted hourly rates as follows: $800 for senior partners; $770 for Eric Holder; a range of $240 for junior associates to $800 for senior partners; and $175 to $270 for legal assistants."

National Union says those fees were beyond reasonable, and that it should not be hit with tshe cost of bearing all of Chiquita's defense costs:

"The attorneys fees and expenses incurred by Chiquita relative to the defense of the Mass Tort Lawsuits for the limited period of June 2007 to July 31, 2009 are staggering. During this 25-month period, the fees total $7,679,107.68 and expenses total $334,338.73. These numbers are more shocking when considered in the context of the procedural posture of the Mass Tort Lawsuits during the 25-month period: no answers were filed; five substantially similar venue pleadings and nine duplicative Rule 12(b) procedural motions to dismiss were filed, and formal discovery was stayed. A review of the defense invoices, however, sheds light on how the fees and expenses became so substantial in such a short period of time: hourly rates exceeding $830; dublicative briefs filed at an average cost per page of $2,412; and interoffice conferencing charges totaling over $760,000.

"National Union does not have an unlimited defense obligation simply because Chiquita retained Covington & Burling LLP (Covington) to take the lead in representing its interests with respect to all of its legal problems resulting for its illegal conduct in Colombia. Furthermore, the scope of National Union's defense obligation does not expand because Chiquita retained independent counsel. Contrary to Chiquita's unjustified expectation that National Union will simply hand over a blank check to pay for its defense, National Union is only required to pay for a reasonable and necessary defense consistent with its contractual rights and obligations under the policies and applicable law. Specifically, National Union is required to pay hourly rates consistent with the prevailing market rates and to pay for hours expended that were reasonable and necessary to the defense of the underlying Mass Tort Lawsuits."

Holder's official Justice Department bio is available here. Chiquita says it hired Holder's law firm because it was a national law firm with a stellar reputation in complex litigation.

Prominent Cincinnati Area Investors Say Giant Columbus Real Estate Firm Owes Millions: Interest On Debt Said To Grow By $1,110 Each Day

By Harry Callahan
Special to The Daily Bellwether
CINCINNATI (TDB) -- Two of the Cincinnati area's savviest businessmen -- Jim Huff and Ralph Drees -- claim they are out more than a combined $3.4 million after placing their trust in a Columbus real estate firm in which they were minority shareholders. Huff and Drees are big names in Northern Kentucky. Details have emerged from James H. Huff et al v. Real Living Inc., filed last September in Hamilton County's Court of Common Pleas. Huff, in 2005, pulled out of a merger with Real Living less than four years into their corporate marriage. Real Living paid $4 million in cash to Huff and his band of lesser shareholders, including Drees. Another $4.5 million was to have been paid in January 2007. That never happened, the suit says.

According to one court document, Huff was personally owed $2.7 million, while Drees was due $671,032, Susan Huff Schilling and James Schilling a combined $509,882, and Rodney Huff $234,000, among others. With an interest clock ticking at the rate of $1,110 per day, the debt had grown to $5.8 million as of Feb. 12. Huff has asked Judge Steve Martin to order payment, even though he stated in court papers that Real Living claims it "cannot afford to make the payment." Real Living announced in November that it was merging with GMAC Real Estate of Oakbrook, Ill., to become an operation with "more than $20 billion in annual home sales." Real Living called itself "one of the nation's premier real estate companies and brands." Lawyers in the dustup include Mark Vander Laan, Bryan Pacheco and Mark Arnzen Jr. of Dinsmore & Shohl for Huff, and W. Kelly Johnson and Kyle Shaw of Porter Wright Morris & Arthur for Real Living.

Artist Shepard Fairey And The Hyde Park County Club Share Something In Common: Legal Doctrine Of Unclean Hands

CINCINNATI (TDB) -- The attorney defending Cincinnati's swanky Hyde Park Country Club against a whistleblower's lawsuit contends the plaintiff is not innocent of wrongdoing and unfair conduct. Arthur Schlemmer said in a court filing that Ted Marinakis's "claims are barred by the Doctrine of Unclean Hands." That is the same legal strategy invoked by artist Shepard Fairey -- creator of the Obama Hope poster -- in a copyright dispute with the Associated Press. Fairey's work is the subject of a showing now under way at Cincinnati's Contemporary Arts Center. The AP says Fairey used a photo owned by the wire service without permission to create Obama Hope; Fairey says the AP has distributed copies of his work without permission. Background on the copyright dispute is available here. A copy of Fairey's counterclaim against the AP's lawsuit is available here (pdf).

For those interested in learning more about the doctrine of unclean hands, there are a variety of sources online offering definitions and explanations. This one was fairly succinct: "Doctrine of Unclean Hands is a defense used by a defendant against a lawsuit when the complainant himself has done a wrong thing in the subject matter in which the plaintiff is seeking a court's assistance. For example, Mr. Smith advanced money to Mr.Kelly to beat his neighbor, and Kelly failed to do the work. Here Mr.Smith is having an Unclean Hand."

Schlemmer, who is defending the country club, has not yet offered any details of the conduct that he wants to pin on Marinakis, who was the club's food and beverage director. Marinakis claims the club hired illegal aliens and allowed gambling. Schlemmer's answer to the lawsuit denies all allegations.

Suburban Cincinnati Woman Finds Rodent Head In Can Of Beans: Kroger, Stokely Ordered To Trial

CINCINNATI (TDB) -- The presence of the rodent head does not seem to be disputed. And none of the adulterated Stokely brand canned green beans that Teresa Scheffler-Morgan poured into a casserole dish while making an evening meal were eaten. Instead, the case will go to a Hamilton County jury in August largely over the question of post-traumatic stress disorder. Judge John Andrew West recently rejected efforts by Kroger Co. and Seneca Foods Corp. to toss the case out of court. The companies claimed the victim had to eat the beans to show she was harmed:

"Defendants cannot be held accountable for Plaintiff Scheffler-Morgan's underlying postraumatic stress disorder. The condition existed prior to any actions by Defendants . . . It is simply not reasonably foreseeable that a food product that contains an adulterated substance will cause a consumer to suffer from postraumatic stress disorder upon merely viewing or observing the adulterated substance . . . Had Plaintiff Scheffler-Morgan consumed a portion of the adulterated food product the issues before this Honorable Court would be different; however, Plaintiff Scheffler-Morgan did not consume any portion of the food product."

So what happened? Here's the story from the woman's lawyers:

"As she was preparing the evening meal, she opened the can of green beans and emptied its contents in a casserole dish. There was an unusual and rancid smell. Teresa observed a chopped up rodent's head in the green beans. She experienced a panic attack, but thought she would be okay. However, Teresa became violently ill over the next several days. She lost her appetite and became depressed and lethargic. As a result of this shocking incident, Teresa experienced extreme intestinal distress. After undergoing a battery of tests with various physicians, it was determined that she was suffering from post-traumatic stress disorder (PTSD)."

Cincinnati Politics: Rumors Fly That Hamco Clerk Hartmann Will Have 'Name' Dem Opponent

CINCINNATI (TDB) -- With his 2008 reelection bid still months away, Hamilton County's Republican Clerk of Courts Greg Hartmann is suddenly and unexpectedly being dogged by rumors the Democrats are lining up a prominent political name to run against him. For two days this week, the courthouse was awash in speculation that former Cincinnati Mayor Charlie Luken would seek the job, which controls some 320-patronage positions and is a huge political plumb.

Luken is now serving as the chairman of the Ohio State Racing Commission, a body that oversees the horseracing industry. He is a lawyer who served two stints as mayor and represented Ohio's 1st Congressional District, a job he quit to become a TV anchorman in Cincinnati.

Hartmann is a former executive director of the county GOP. He ran for Ohio Secretary of State last year and was soundly defeated by Jennifer Brunner. Some of the anti-Hartmann buzz downtown and in the courthouse was being fueled by staff shakeups and reassignments.

Other names mentioned as possible opponents were outgoing Cincinnati Vice Mayor Jim Tarbell, who launched an aborted bid for a Cincinnati school board seat last week. It folded when Tarbell failed to gather enough names on his nominating petitions. Tarbell would have party support if he took on Hartmann and his campaign would probably be better run. Another potential foe: Hamilton County Auditor Dusty Rhodes.

Some Democrats see Hartmann as vulnerable because he was returned to office in 2004 with 213,000 votes. That was fewer than the two county commissioners, and the treasurer -- who all faced opponents. While the Luken rumor probably is shaky at best, the fact that it flared to life and created such a buzz is a sign that Hartmann's job is being seen by some strategists as a prize within reach of the Democrats.