FAYETTEVILLE — Jim Bolt, who pleaded guilty in January to federal mail and wire fraud related to his purported alternative cancer treatment clinic, Situs Cancer Research Center, in Rogers wants a new attorney and another bond hearing.
Bolt, 60, pleaded guilty to one count of wire fraud, one count of mail fraud, and one count of money laundering in a plea bargain with prosecutors. The plea in U.S. District Court for the Western District of Arkansas in Fort Smith was taken by Judge Robert Dawson. Bolt is expected to be sentenced at a later date.
Legal Lingo
Detention Hearing
A pretrial hearing in federal court is much like a bail hearing in state court. The court determines whether to detain the defendant without bail. In deciding if bail is appropriate, the court considers if any conditions, such as a particular amount or government monitoring, will ensure the defendant, if released from custody, will show up for court in the future. The judge also will consider if the defendant’s release will compromise the safety of any particular people or the community at large.
Source: NOLO.com
In documents filed last week in U.S. District Court in Fayetteville, Bolt contends his lawyer, Herb Southern, had a conflict of interest -- collusion with the government -- he didn't disclose to Bolt. Southern, who has denied the allegations, asked to withdraw from the case, citing what he said are false statements made by Bolt.
Southern said Bolt, along with his "paramour," Nikki Sailer, have created a conflict situation and, as a result, he can no longer defend Bolt.
Dawson granted Southern's motion to withdraw as Bolt's attorney Tuesday.
Southern said in court filings Bolt alleged Southern is the target of an FBI investigation in an unrelated case and gave Bolt substandard legal representation to avoid the wrath of the FBI. Bolt also claimed Southern submitted documents in foreclosure actions against Bolt signed by persons with no standing to do so. Southern contends Bolt signed the forfeiture agreement himself.
"Based on a letter received from Sailer, Bolt and Sailer wish to argue that Sailer can, through Situs, retain ownership of the property which Bolt has admitted was purchased with the proceeds of fraudulent transactions which are the source of the criminal charges in this case," Southern wrote in a motion. "The Arkansas Rules of Professional Conduct instructs that an attorney shall not engage in behavior which would present a fraud on the court."
Southern said he told Sailer she needs to hire another lawyer.
Bolt also now claims he may have been illegally entrapped by undercover federal agents.
Bolt was denied bond in September after a magistrate found he was a flight risk, in part because a "go bag" was found in his home containing his and his son's passports, $8,000 cash and other belongings.
Southern said asking for another detention hearing would be frivolous because Bolt cannot prove he isn't a flight risk.
Documents filed by Bolt state he has already fired Southern, and testimony by an FBI agent at his detention hearing was untrue and deliberately misleading.
The FBI launched an investigation into suspicious activity involving the Situs Cancer Research Center in August 2012. The investigation revealed Bolt committed mail and wire fraud by preparing and sending fraudulent documents containing forged signatures and false authentication features to various entities and individuals in order to persuade them to send him unclaimed property, money and other assets from defunct companies held by California for Community Medical Group of Corona.
The government contends Bolt took more than $2.5 million from Community Medical Group and at least two other companies.
Community Medical Group never authorized any transfer of its property to Situs.
Bolt faces a maximum sentence of 20 years in prison for the fraud charges and a maximum sentence of 10 years in prison for money laundering. Bolt faces fines of up to $250,000 per count or a fine of not more than twice the amount of the criminally derived property involved.
Bolt agreed to pay full restitution to all victims, including those in the counts that will be dismissed. The judge will determine the amount of restitution. Bolt agreed to help identify assets transferred to third parties.
In the plea agreement, Bolt agreed to forfeit three properties prosecutors said were purchased with money derived from mail fraud, wire fraud and money laundering. The properties are 1222 W. Poplar St., 1204 W. Poplar and 303 S. Rife St., all in Rogers.
Bolt also forfeited two mobile medical units, a box truck, an Airstream recreational vehicle, two Volvo sport utility vehicles, a Suburban-style vehicle, a Toyota pickup, four airplanes, $8,900 cash, $111,971 from a bank account and other items.
NW News on 03/05/2014