Segal Wants Call Girl Testimony Kept From Jurors in Fraud Trial

Attorneys for Chicago-based insurance broker Michael “Mickey” Segal have asked a federal judge to bar testimony in his upcoming trial that accuses him of spending hundreds of thousands of dollars in ill-gotten funds on female escorts and other personal expenses.

Segal has pleaded innocent to charges alleging he siphoned $20 million out of a trust account that his politically connected insurance brokerage firm was required by state law to maintain. His racketeering trial is scheduled to begin April 19.

Both sides filed a series of motions arguing for and against the admissibility of evidence and testimony.

Defense attorneys asked U.S. District Judge Ruben Castillo to prohibit testimony alleging that Segal spent large sums of cash on escorts. Prosecutors alleged in court papers last week that Segal spent money earmarked for insurance premiums on $400-an-hour call girls, maids and other personal expenses.

Segal has denied the allegations.

Defense attorneys argue that the testimony should not be allowed because prosecutors have no proof the money came from Near North Insurance Brokerage accounts.

Segal’s clients included the Illinois Toll Highway Authority and Chicago’s lakefront McCor-mick Place convention center. He was arrested in January 2002 on federal charges alleging illegal withdrawal of cash from an insurance premium reserve fund. Prosecutors later added racketeering charges.

Prosecutors asked Castillo on Tuesday to exclude some defense arguments that Segal’s attorneys are expected to use during the trial. One of those arguments is that no insurance company lost money when Segal allegedly took funds from a Near North account that is used to pay insurance premiums.

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Topics Fraud