Feds: Segal Tried Jailhouse Asset Transfer

Feds: Segal Tried Jailhouse Asset Transfer

By Mark E. Ruquet

NU Online News Service, July 8, 3:58 p.m. EDT?Michael Segal, the former chief of Near North, was cut off from access to his company's assets after federal prosecutors said they discovered he was trying to transfer them to family and friends.[@@]

Federal Judge Ruben Castillo in Chicago appointed M. Scott Michel as trustee to oversee the assets on Tuesday after prosecutors said they discovered Mr. Segal was discussing over a jail telephone getting the assets transferred, a spokesman for the U.S. Attorney's office said.

Mr. Michel is a former U.S. bankruptcy trustee and a Chicago attorney with the law firm Lord, Bissell & Brook.

Mr. Segal, the founder and former chief executive of Chicago-based insurance broker Near North, was convicted in June of 26 counts stemming from the embezzlement of $20 million from the firm's premium trust fund. The counts included three of embezzlement, 13 counts of mail fraud, seven counts of making false statements, one count of wire fraud, one for tax fraud conspiracy, and one count for racketeering.

His bail was revoked shortly after his conviction after prosecutors argued to the judge that he was a potential flight risk.

Attorneys for Mr. Segal are currently in the process of seeking his release.

He faces up to 20 years in prison, forfeiture of $30 million from his own funds and all his assets in Near North. No date for sentencing has been set.

Representatives from Mr. Segal's office did not return a call for comment.