For those of you not in the bail industry or don’t quite understand what these people did, I will try to explain it. Any bail bondsman has to pay a percentage of the 10% premium to an insurance company and a Managing General Agent. On average its about 30%.
So let’s take the $500,000 dollar bond in this article. The client would have to pay the bondsman $50,000. Of that $50,000, about $6,500 would go to the Insurance company and $6,500 to the Managing General Agent. Leaving the bondsman with a $37,000 profit.
Every bond you receive from the Insurance company is serial numbered so they know when you use one and when you don’t. It’s to prevent bondsman from posting bonds and not paying them their percentage. What these bondsman did was make fake bonds to post at the jail and since they’re fake there is no need to report anything to the Insurance company.