The father-and-son team behind one of Baltimore’s largest bail bond services will plead guilty next week to federal charges filed against them, their lawyers confirmed.
Milton Tillman Jr. and Milton Tillman III of 4 Aces Bail Bonds Inc. are scheduled to be in U.S. District Court in Baltimore on Wednesday afternoon, according to a notice of a hearing filed Thursday. The Tillmans were indicted in February on multiple counts of tax, insurance and wire fraud 18 months after federal agents raided their homes and offices.
Steven A. Allen, the younger Tillman’s lawyer, said his client will plead guilty to a single count of failing to file a tax return for 2003, a misdemeanor, and will not serve any time in prison.
“The government and Mr. Tillman have agreed and will stipulate that Mr. Tillman should not be sentenced to a period of incarceration in connection with his plea,” said Allen, a member of Hodes, Pessin & Katz P.A.
Kenneth W. Ravenell, the elder Tillman’s lawyer, said his client is pleading guilty because of “the benefits his son would receive,” referring to the lack of jail time. Ravenell said the details of Tillman Jr.’s guilty plea have not yet been finalized, and he did not know what his client’s punishment would be.
Marcia Murphy, a spokeswoman for U.S. Attorney Rod J. Rosenstein, declined to comment on the case.
The 28-count indictment, which details events from 2001 through October 2007, accuses Tillman Jr. and Tillman III, also known as “Moe,” of structuring 4 Aces and “corporate nominees” to conceal from the Internal Revenue Service the elder Tillman’s control of the company and amount of income he and his son received. The Tillmans transferred funds from 4 Aces to themselves for personal use, including payments for apartment complexes and life insurance policies, according to the indictment.
Tillman Jr. also transferred funds to make $1,200 monthly payments on his BMW and nearly $25,000 to pay federal criminal fines in November 2005, according the indictment.
Prosecutors also accused Tillman Jr. of receiving more than $60,000 in hourly wages and benefits for time he did not work as a longshoreman at the Port of Baltimore. Tillman, a member of the local longshoreman’s union, “caused false information to be entered on daily time sheets” and also received hourly wages while on vacations across the world.
Tillman Jr. is charged with 15 counts of wire fraud, five counts of filing false tax returns and one count of unlawfully engaging in the insurance business because of prior federal convictions. Tillman Jr. was convicted of bribery in 1993 and tax fraud in 1996.
Tillman III is charged with five counts of filing false tax returns and one count of allowing his father to engage in the insurance business through 4 Aces.
Both Tillmans are also charged with conspiracy to defraud the Treasury Department.