Already facing criminal securities fraud charges in connection with an alleged 1990s kickback and commission-skimming scheme (Institutional Investor, August 2001), Bond was arrested last month on new charges: that he had perpetrated a front-running scam in which he directed unprofitable trades to his clients’ accounts and profitable ones to his own. Prosecutors say that Bond, 40, bilked customers out of $56 million while producing a $6.6 million gain for himself. Bond pleaded not guilty and spent nearly a week behind bars before making the $1 million bail. On top of that, Bond’s lawyer, Theodore Wells of Paul, Weiss, Rifkind, Wharton & Garrison, has resigned from the original case. In that complaint, Bond is charged with skimming $7 million from pension clients that included the National Basketball Association and the Washington [D.C.] Metropolitan Area Transit Authority. His new attorney is Leonard Joy, who heads the federal public defender’s office. Bond may not be able to afford an expensive lawyer - the government has frozen all of his assets. Joy declined to comment, explaining that he hadn’t had time to become familiar with all aspects of the case. Bond could not be reached.
