Proving That Funds to Secure a Bond Are Legitimate in New York
In People v. McIntyre, 168 Misc 2d 556, 563, 640 N.Y.S.2d 386 [NY Sup Ct 1996], Supreme Court, kings County, held that when a defendant is unable to prove by a preponderance of the evidence that the source of collateral or other funds to secure a bond are legitimate, a court may deny posting of the bond, without affecting the actual order setting bail, on grounds of public policy. Id., at 565.
"The court must probe the relationships between the indemnitors and the defendant and the motives of the indemnitors in pledging the collateral or putting up funds to pay a premium. These considerations, albeit not necessarily factors in the surety's decision to issue a bond, are crucial from a public policy standpoint." Id., at 563.
Furthermore, it is a court's obligation to inquire "if an otherwise legitimate obligor is being unwittingly used as a front to conceal illicit sources of cash in contravention of New York State's public policy." Id.