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Monday, Feb 07 2011 05:44 PM

Judge deems Cole a flight risk

BY JOHN COX, Californian staff writer jcox@bakersfield.com

A federal judge in Fresno sided Monday with prosecutors arguing that mortgage fraud defendant Carl Cole poses a flight risk and may need to be detained.

Despite agreeing as to the inadequacy of two $10,000 bonds filed by Cole's wife and one of his sons to secure the defendant's release, the judge released Cole Monday and ordered him to return to court Friday, when Cole's attorney is expected to propose a bond amount that would ensure his continued appearance in court proceedings.

Cole is a key defendant in the indictment filed Jan. 13 against people involved with Bakersfield's now defunct Crisp & Cole Real Estate. He and nine others connected to the company were arrested Jan. 20 and 21 on federal charges that they schemed to defraud mortgage lenders through an elaborate fraud involving false information provided on loan applications.

Monday's judgment tentatively reverses a decision last month by a federal judge in Los Angeles that the two bonds by Cole's family were sufficient. Prosecutors said the bonds were not enough because he has lived at four different residences outside Kern County since 2008, he works in retail 20 hours a week and has a history of international travel, even though he surrendered his passport as part of his condition release from custody.

Prosecutors also questioned his family's finances, noting that Cole's only asset was an account containing about $2,500 and that his wife told federal agents in 2007 that the couple were at least $3 million in debt.

Cole is charged with 33 counts of mail fraud, 10 counts of wire fraud and 11 counts of bank fraud; each of these carries a maximum sentence of 30 years in prison. He also is charged with conspiracy to launder money, which carries a maximum sentence of 10 years in prison.

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