LIHU‘E — Former Kaua‘i resident and convicted fraud artist James Lull failed to appear in Honolulu federal court for his scheduled sentencing on a wire-fraud charge Thursday afternoon, to the surprise of all involved in the case. He previously had
LIHU‘E — Former Kaua‘i resident and convicted fraud artist James Lull failed to appear in Honolulu federal court for his scheduled sentencing on a wire-fraud charge Thursday afternoon, to the surprise of all involved in the case.
He previously had voluntarily surrendered to federal authorities, and was present at all of his other scheduled court appearances, said Clare E. Connors, deputy U.S. attorney, the prosecutor assigned to Lull’s case.
Federal Judge Susan Oki Mollway immediately issued a bench warrant for Lull’s arrest, said Connors.
“She’s revoked his bail,” Connors said of Mollway’s action Thursday. Mollway also rescheduled Lull’s sentencing hearing for June 4 at 9 a.m. on O‘ahu.
If and when he is arrested on that bench warrant, a hearing will be held to determine the status of his bail, or whether or not it should remain revoked, Connors explained.
If the bail remains revoked, Lull would stay in federal custody until his sentencing, and then be taken to whatever federal facility he is assigned to serve his sentence, Connors said.
Lull was free on a $100,000 signature bond, meaning he didn’t have to put up a penny for his temporary freedom, and was living in the Pacific Northwest.
There was additional information that came to light earlier this year that led to issuance of a summons to review Lull’s bail conditions, Connors told The Garden Island. That means information surfaced that led the judge to have questions about whether or not Lull could be a flight risk, but nothing was done before Thursday’s scheduled sentencing.
Federal public defender Peter C. Wolff Jr., Lull’s court-appointed attorney, said in court Thursday that he had spoken to Lull, and that Lull told him he was scheduled to arrive in Honolulu on a flight from the Pacific Northwest around 12:30 p.m. Thursday.
The single wire-fraud charge carries a maximum sentence of 20 years.
Earlier, Mollway indicated she might exceed federal sentencing guidelines in Lull’s case because of his lack of cooperation with a federal bankruptcy trustee assigned to try to locate Lull’s assets in order to pay off a long list of creditors that includes many Kaua‘i residents past and present, and because of the devastation he brought on his victims.
In Lull’s plea agreement signed in September 2008, he agreed to be cooperative with federal representatives seeking return of his ill-gotten assets.
Wolff could not be reached for comment Thursday.
Jon Anderton, a Kaua‘i accountant and Lull creditor, was in Honolulu for the sentencing hearing, and said “it would make sense that he would run,” knowing the judge’s sentencing intent and the fact that Lull, 60, might die in jail if sentenced to the 20-year maximum.
“What does he have to lose?” Anderton asked, and also added, “I think he’d be stupid to be on the run.”
Lull in his plea agreement voluntarily pleaded guilty to wire fraud, and admitted to defrauding 50 or more people out of more than $20 million but less than $50 million.
At least one of the Kaua‘i victims filed a claim in U.S. bankruptcy court seeking over $10 million, and several others filed claims of over $1 million.
Lull had managed the Kaua‘i office of U.S. Financial Mortgage Corporation.
• Paul C. Curtis, staff writer, can be reached at 245-3681 (ext. 224) or pcurtis@kauaipubco.com
