Judge Orders Extradition of Fraud Suspect
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U.S. Magistrate Ronald W. Rose on Thursday ordered the extradition of Douglas P. Blankenship to Seattle, where he will stand trial on federal charges that he masterminded a $25-million fraud against financial institutions in seven states.
Blankenship, 45, of Capistrano Beach, has been held without bail at the Metropolitan Detention Center in Los Angeles since his arrest Nov. 1.
Blankenship and 14 other defendants are being tried in Washington state because the alleged scheme’s largest victim--Puget Sound National Bank--is headquartered there.
Assistant U.S. Atty. Susan Dohrmann in Seattle said that most of the defendants will be arraigned today, including San Clemente resident Larry Frankhouser, described by investigators as Blankenship’s chief of staff.
Federal officials said Blankenship will be transferred from the Los Angeles jail to a Seattle facility within the next few days.
Attorneys for Blankenship have said that he will plead not guilty.
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