Idaho Falls man sentenced for misappropriating funds

BOISE, Idaho (KIFI/KIDK) - An Idaho Falls man was sentenced for misappropriation or diversion of fiduciary funds Thursday.

Attorney General Lawrence Wasden announced 51-year-old Ryan James (R.J.) Smith pleaded guilty to one count in December.  

Seventh District Court Judge Joel Tingey sentenced Smith to two years supervised probation and 100 hours of community service. The judge ordered Smith to pay a $500 fine, $1,892 in restitution to the Idaho Department of Insurance and court costs. The court also ordered a withheld judgment.  

An investigation revealed Smith, as a bail agent and then-owner of Atlas Bail Bonds, received $10,000 cash collateral from a client for a bail bond. Smith then diverted funds from the client’s collateral payment for his own personal use. When the underlying bail bond was exonerated, the client requested return of the collateral but Smith did not return the money. The client filed a complaint with the Idaho Department of Insurance. Smith subsequently returned the client’s collateral and surrendered his bail agent license in lieu of revocation. 

The Idaho Department of Insurance investigated the case.