A judge on Friday set bail at $750,000 for the alleged founder of north Minneapolis' "Beat-Down Posse," and the judge ruled that the defendant's father's bail bond business could not spring the accused racketeer from jail.

Joseph Duane "Little Joe" Gustafson Jr., 36, appeared before Hennepin County District Judge Kerry Meyer wearing an orange jumpsuit with his hair in a braid that hung to the middle of his back.

His father, Joseph "Big Joe" Gustafson Sr., sat in the front row with two other supporters.

Charges say Beat-Down Posse (BDP) members for years robbed, assaulted and intimidated drug dealers and others on the North Side while using ex-Hell's Angel Gustafson Sr.'s business, Gustafson's Bail Bonds, as a front.

The gang also is alleged to have committed mortgage fraud that netted $300,000 for the Gustafsons through loans on houses, including some that mysteriously burned down.

Authorities say the charges are a result of a years-long investigation that could yield more arrests. Although Gustafson Sr. was named in the complaint, he is not charged.

Assistant County Attorney William Richardson emphasized the seriousness of the racketeering charges against Gustafson Jr., one of 14 felonies filed against him and his alleged bodyguard and right-hand man Troy Neuberger, 38.

Richardson said that if Gustafson is convicted, prosecutors will ask for a 20-year sentence on the racketeering count alone. He urged the judge to set bail high and described Gustafson as dangerous and a flight risk. He also asked that Gustafson's Bail Bonds not be allowed to post his bail.

Defense attorney Joseph Kaminsky countered that Gustafson's Bail Bonds currently does not have a license but should be allowed to put up the bail if the license is regained.

"Although the allegation is that they were involved, they are only allegations," Kaminsky said. "To prevent a company from conducting business based on mere allegations may not be appropriate."

Gustafson Jr. already was scheduled to appear in court Friday on charges filed in October of making terroristic threats and being a felon in possession of a firearm. Before his arrest Friday morning, Gustafson was free on $120,000 bail in connection with those charges and others, and he had not missed any court appearances, Kaminsky said.

He also pointed out that Gustafson is very close to his father and has other family, including a wife and children, in the area. "If he wanted to leave, he would have left a long time ago," Kaminsky said.

Meyer barred the family business from posting bail but said she'd reconsider if the business regained its license. She set bail at $750,000 for all of Gustafson's pending cases, with credit for bail already posted.

As he left the courtroom, Gustafson Jr. turned and waved to his father, who waved back.

Abby Simons • 612-673-4921