Indictment Upheld Against Near North's Segal
By Mark E. Ruquet
NU Online News Service, Jan. 13, 2:53 p.m. EST?Michael Segal, the embattled owner of Chicago-based Near North National Group, lost another round in federal district court after the judge in the case refused to drop the indictment against him and his company.[@@]
U.S. District Judge Ruben Castillo, sitting in the Northern District of Illinois, Chicago, rejected motions by Mr. Segal to dismiss the charges against him. The court did drop one charge of mail fraud against Near North, a co-defendant in the case, because the statute of limitations deadline had expired.
Mr. Segal is accused of misappropriating millions of dollars from the firm's premium trust fund account over a 12-year period for his own and company use. Prosecutors say the amount ranges from $5 million in 1990 to $24 million by 2001.
Arrested in January of 2002, he is currently free on $750,000 bail.
He is charged with seven counts each of mail-fraud and making false statements, a wire fraud count, and one count of racketeering. Near North is now charged with five counts of mail fraud and seven counts of making a false statement.
Judge Castillo's decision noted that federal prosecutors are "considering bringing new charges against defendants and considering charging new individuals and entities."
A trial date has been set for early April.
If convicted, Near North could face five years probation and fines of $500,000 for each count. Mr. Segal could face a term of 5-to-20 years imprisonment on each count and a maximum of $250,000 in fines for each count.
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