United States v. Paul Michael Kodelja, and Allied Fidelity Corporation, Claimant-Appellant

Appellant Allied Fidelity Corporation posted bond for the defendant Kodelja. After the defendant’s release on bail, he was arrested again on a separate charge. The defendant was released after this arrest when a friend of the defendant, Bruno, posted bail consisting of a promissory note secured by two quitclaim deeds. Shortly after this release, the defendant fled, and apparently is still at large. The government subsequently moved for a forfeiture of the bond posted by Allied. The motion was granted and Allied appeals, arguing that (1) the magistrate acted in excess of his jurisdiction by authorizing the release of Kodelja upon the posting of the promissory note and two quitclaim deeds as security; (2) Kodelja’s reporting conditions under Allied’s bond were so uncertain that Allied should be released from its obligations under that bond; and (3) the releasing of Kodelja on bail after his second arrest enlarged the risk assumed initially by Allied. We affirm the forfeiture.

DISCUSSION

The magistrate did not act in excess of his jurisdiction. The promissory note secured by the two quitclaim deeds was properly accepted as “other security” within the provisions of 18 U.S.C. § 3146…