With new rules that eliminate bail for many lesser crimes in Los Angeles County, the companies that guarantee bails with their money are worried – not only about their businesses, but also about public safety.

Under the new regulations, most suspects of misdemeanors and some felonies will be cited and released following their arrest, and they would not have to put up bail money. That would result in the evaporation of a significant chunk of revenue for bail bonds companies. In exchange for a percentage of the overall bail amount, those companies “pay” for the release of suspects from pretrial detention and are responsible for making sure they make their next court dates.

“As a business professional, I hate it,” said Matt Laird, a claims manager with Espinoza Bail Bonds, which is based in Sacramento but has more than a dozen offices in Los Angeles County. “I think it’s terrible. Obviously, it puts a dent in our business.”

The sentiment behind the new rules reflects a desire to level the playing field for individuals arrested. Those with some financial resources are more likely to avoid being stuck in jail for months or even years before their next hearing or court date while those with fewer resources may have to endure incarceration. 

However, bail bonds officials claim that they attempt to work with financially disadvantaged suspects to give them options. In essence, the bail bonds companies provide accountability for those individuals without burdening public law enforcement agencies.

“It’s not just about them showing up to court. We create accountability,” said Jacob Nesheiwat, an office manager for Whittier-based American Liberty Bail Bonds. “If someone’s mom’s house is on the line, they’re going to think twice about what they’re doing. There’s got to be something there that deters a person from doing what they’re doing and (keeps them) showing up to court.”

New rules

The new bail rules went into effect this month, via policy by the Los Angeles Superior Court in response to a lawsuit.

The policy applies to nearly all misdemeanor offenses – except for stalking, domestic battery and restraining-order violations. Among felonies, the rule does not apply to those charged with murder, manslaughter, rape and most types of assault.

Outside of worries about the loss of business, Laird was concerned about what sort of message the new policy sends to criminals. He cited media reports of shoplifting groups repeatedly ransacking stores to such an extent that a number of big-name retailers have closed stores in cities including San Francisco and Minneapolis.

Nesheiwat, who manages the Lancaster office of the company his uncle founded, agreed.

“Criminals are smart, man. They know their boundaries and what they’re facing,” he said. “If you let some guy out for petty theft, I could see that being an epidemic. It already is. It’s already affecting businesses. People are more brazen.”

This policy is not totally new in Los Angeles County. At the beginning of the Covid-19 pandemic, officials implemented a no-bail policy for a similar roster of offenses to prevent the overcrowding of jails. Although critics and many law enforcement agencies said this would increase crime and recidivism, the Los Angeles Times reported that a report to the L.A. Board of Supervisors indicated that failure-to-appear and re-arrest rates remained relatively stable during the period in which that police was in place.

But Laird said he predicted in the long run that this policy would be the equivalent of “putting a Band-Aid on a bleeding artery,” adding that it would become a taxpayer burden when a sufficient number of low-level offenders skip court, instead of the private bail bond companies tracking them down.

“No one’s talking about what’s happening on the back end,” he said. “Now we’re going to have a huge backlog of cases that aren’t going to be solved, and at some point, as warrants pile up, they’re going to have to go out and find these people.”

Similarly, Nesheiwat added, “I see some of the points that are made (with the new rule) and they do make sense, but it’s outweighed by a lot of negative.”

Nesheiwat said his family’s business has been feeling the financial pressure for years.

Already started

Part of this pressure has been related to the no-bail policy put in place during the first stage of the pandemic. Another element is related to the difference in how the Los Angeles County District Attorney’s Office has charged or sought bail for suspects since George Gascon’s election. Gascon, the current district attorney, spearheaded the bail-reform changes. The Whittier headquarters for American Liberty Bail Bonds in a sign of opposition with the new policy, displays a “Recall George Gascon” banner on its storefront.

“It already started before this rule change,” he added. “It just put a bad image in peoples’ heads, with people calling us predatory lenders. That whole situation slowed us down already. This is adding salt to the wound.”

Once boasting 15 offices with 120 employees, Nesheiwat said American Liberty is now reduced to 30 to 40 people spread across five offices: Whittier, Bellflower, Lancaster, South Gate and Anaheim. He said he felt the company could likely handle whatever downturn in revenue would come from the new bail rules but said that smaller operations are especially vulnerable.

“We’ve been in the business for 30 years,” Nesheiwat said. “We have a lot of years of marketing and networking. We’re able to stave off water, but I’m sure a lot of the smaller companies are going to fade out.”

Both bail bondsmen said that the profession does not exactly produce a lot of revenue to begin with. While such businesses typically advertise a 10% down payment requirement, their agents will often work with arrestees, most often by financing a down payment or using property as collateral.

“Bail is a constitutional right. We are providing the avenue. If you can afford it (on your own), more power to you,” Nesheiwat said. “If somebody’s qualified, they’re absolutely getting financed. Let’s just say they have a $10,000 bond. They could put $150 down and finance it, as long as the co-signer is working. As long as there’s accountability, there’s financing available. Not everyone has $5,000 to throw around.”