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Michael K. Bleckley and Phillis M. Bleckley — the Richland, Ga.,
couple accused of bilking a family out of millions of dollars — had
their $1.5 million bonds reduced in a Wednesday hearing.
Prosecutors also said at the hearing that Racketeer Influenced and
Corrupt Organizations Act proceedings had begun in the counties in which
the Bleckleys own property, which prohibits them from using that
property to post bond.
Michael Bleckley’s bond was reduced to
$100,000 and his wife’s to $50,000 after an hour-long hearing before
Muscogee County Superior Court Judge Doug Pullen. Both were arrested
Aug. 19 after being accused of using MKB Capital Management to take more
than $3.4 million from the Kim family that runs Mikata Japanese
Steakhouse and Sushi Bar, claiming to have invested it with good
returns. They met with the Kims quarterly to present financial reports,
at one point stating that a terrorist attack in the Middle East had
increased the return on investments, Chief Assistant District Attorney
Alonza Whitaker said.
Wednesday’s hearing also dealt with two
other issues:
• Attorneys from Frank Martin’s law firm are
representing both Bleckleys, which Whitaker challenged as a potential
conflict of interest.
Pullen asked the Bleckleys whether they
understood the potential problems of having two attorneys from the same
law firm — Frank Martin and his son, John Martin — represent them. Both
said they understood.
• Martin asserted that Whitaker misled the
court in an effort to get a high bond for the Bleckleys.
Whitaker
earlier told Chief Judge John Allen that Michael Bleckley had a pilot’s
license and that records showed he had $1 million in an account in
England. Martin said neither statement was true.
“At the least,
it was very reckless,” Martin said Wednesday. “It was very reckless to
make statements to induce the court to set a $1.5 million bond for Mr.
Bleckley and Mrs. Bleckley.”
Whitaker countered with documents he
said showed that Michael Bleckley had received $3 million from the Kim
family. He said that similar documents were shown to the Kims and that
it’s clear the money was used for investments, not loans.
“Close
to $6 million has went through their hands,” Whitaker said.
Pullen waved aside the back-and-forth between prosecutors and defense,
asking them to focus on a bond. After a brief huddle at the judge’s
bench, Pullen announced the new bond amounts.
Both Bleckleys have
been indicted on counts including conspiracy to commit theft, failure to
register as broker-dealer and a violation of the Georgia Racketeer
Influence and Corrupt Organization Act, as well as seven counts each of
theft by taking and selling unregistered securities.
The
Bleckleys’ trial is scheduled for Oct. 6.
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