Segal Refused Bail Again
By Mark E. Ruquet
NU Online News Service, Dec. 17, 11:38 p.m. EST?Michael Segal, the former chief executive of the Chicago-based insurance brokerage firm Near North, lost another bid for bail and remains in jail pending sentencing for an embezzlement scheme.[@@]
Mr. Segal is being held in prison because he is considered a flight risk following his June conviction when he was taken into federal custody.
A spokeswoman for the U.S. Attorney's office for the Northern District of Illinois said Mr. Segal's attorneys sought his release so he could receive medical treatment for a rash. U.S. District Court Judge Ruben Castillo in Chicago turned down his request, the spokeswoman said.
She said that he is receiving proper medical treatment in jail and still remains a flight risk.
The former chief executive was convicted in federal court of 26 counts including fraud, racketeering, embezzlement and tax evasion. This week, seven counts of making false statements were thrown out by Judge Castillo, who presided over the trial. He said prosecutors failed to prove this portion of the case.
Despite this development, Mr. Segal still faces up to 20 years in prison on the most serious counts of racketeering.
In January of 2002, Mr. Segal was arrested by the F.B.I. for embezzlement of $20 million from Near North's Premium Trust Account over a four year period involving himself and the firm. The money was used for personal and business purposes, prosecutors contend.
In his defense, Mr. Segal's attorney's said that the missing funds were due to an accounting problem and, during that period, no one lost insurance because of non-payment.
Sentencing for Mr. Segal is scheduled for Feb. 23.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.