Stanton: It’s D.A. Who Should Be Investigated

SANTA ANA — The chairman of the Board of Supervisors on Tuesday publicly challenged Dist. Atty. Michael R. Capizzi’s handling of the civil and criminal cases stemming from Orange County’s bankruptcy, calling for a financial audit of Capizzi’s office and suggesting that his relentless pursuit of the cases is politically motivated.

Noting that “the district attorney has intimated that he may not have time to proceed [with the case] against me,” Chairman Roger R. Stanton called for Capizzi to drop the civil misconduct case against Supervisor William G. Steiner, as well as the criminal charges against ex-Budget Director Ronald S. Rubino.

“It’s time to stop the bleeding in this county, and it’s time to make the healing process complete,” Stanton said. “I would like to think that our district attorney would now have the good judgment to put [these cases] to rest . . . without the further waste of taxpayer dollars.”

Stanton’s comments come less than a week after the first criminal trial related to the bankruptcy ended in a mistrial, with jurors deadlocked 9 to 3 in favor of acquitting Rubino on the two felony counts he faced.

Capizzi on Tuesday reiterated his intention to retry Rubino and insisted that his actions in all of the cases have been motivated solely by a desire to see justice done.

Of Stanton’s charges that public funds were being squandered to enhance his political prospects, Capizzi said: “You have to consider the source and the circumstance in which they were made.

“I think it’s unfortunate that this comes up in the context of two board members who are facing accusations,” he added. “The debate would better take place in a situation where there isn’t that self-interest. I don’t think this is the proper time to debate this.”

Capizzi also dismissed Stanton’s call for a financial audit to determine how much money his office has spent pursuing the bankruptcy cases.

“I think a good deal of [budget oversight] is already taking place,” Capizzi said, adding that County Chief Executive Officer Jan Mittermeier’s office already conducts extensive reviews of his office budget. He said he could not estimate how much his office has spent on its 21-month bankruptcy probe.

Stanton’s impassioned appeal was made during Tuesday’s regular board meeting, at which the supervisors were being asked to consider appropriating yet more money to pay defense attorneys representing accused officials.

The board has already allocated $1.3 million to defend the four officials. On Tuesday, Auditor-Controller Steve E. Lewis, who also faces civil misconduct charges, asked that his defense cap be increased from $300,000 to $500,000, but the board delayed action for at least a week. Steiner and Rubino also indicated that they will soon request additional funds.

Stanton’s proposal for a financial audit garnered support from Supervisor Don Saltarelli, who said he would like to compare the costs of the bankruptcy prosecutions to the amounts spent prosecuting murders and other types of cases.

“We owe it to ourselves and to the taxpayers to learn the costs of these prosecutions,” Saltarelli said. “There is no question that the D.A. has the right to prosecute cases. But the Board of Supervisors has general supervisory authority over the [D.A.’s] office. We have a responsibility to examine these issues.”

Added Steiner: “I think there needs to be accountability for spending public funds [to prosecute] . . . noncriminal conduct.”

Supervisor Marian Bergeson agreed with Saltarelli that the board should make sure that the district attorney is spending public funds wisely.

But she said she could not support actions that would “detract from the basic [prosecutorial] responsibilities that are constitutionally vested with the district attorney.”

Whatever the outcome, Bergeson expressed the hope that the county would soon be able to put the bankruptcy prosecutions behind it.

“This is a continuing cloud that really impacts the ability of the board to address critical issues,” she said. “The longer it drags on, the more detrimental it is to the county.”

Stanton’s statements came as a surprise to most board colleagues and left people attending the board meeting spellbound.

In addition to the financial audit, Stanton asked that the county counsel review the feasibility of creating a “blue ribbon commission” that would examine the process by which the district attorney’s office decides which cases to take before the grand jury, as well as its relationship with that quasi-judicial panel of 18 citizens, who are empowered to file formal charges.

Stanton also suggested that the county invite the state attorney general’s office “to look into any questions of prosecutorial misconduct . . . including expenditures for ‘political’ purposes.”

Capizzi has said that he is exploring the possibility of running for attorney general in 1998, and some of his critics, including Rep. Dana Rohrabacher (R-Huntington Beach) and state Republican Party Vice Chairman Michael Schroeder, have said his aggressive pursuit of Orange County political figures is designed to boost his election prospects.

Stanton, Steiner and Lewis face charges of willful misconduct for failing to prevent the December 1994 bankruptcy, which stemmed from a $1.64-billion loss into a county-run investment pool. If convicted, they could be removed from office.

A state appeals court is expected to rule within the next month on a request by the supervisors that their cases be dismissed. Capizzi acknowledged last week that Stanton’s case might not go to trial before the supervisor leaves office in December, which would preclude the only possible punishment--removal from office. But he vowed to prosecute Steiner in 1997.

Stanton said Tuesday that he was prompted to speak out in part by the outcome of the Rubino trial, which he described as an “incredible expenditure and drain on public funds [that] can lead to only one conclusion.”

But Capizzi defended his office’s handling of the case, noting that three jurors voted to convict Rubino.

Capizzi also pointed to bankruptcy-related prosecutions beyond Rubino. Former treasurer Robert L. Citron, whose risky investment practices are blamed for causing the financial crisis, pleaded guilty last year to six counts of fraud and misappropriation of public funds. Citron’s deputy, Matthew R. Raabe, faces trial on the same charges next year.

Stanton’s remarks came as the board considered whether to increase Lewis’ legal defense cap to $500,000. The board delayed action at the request of County Counsel Laurence M. Watson, who said he needed time to study legal issues.

Watson declined to specify what issues he needed to review. But several sources said county attorneys were attempting to determine whether Stanton and Steiner could vote on Lewis’ request for more funds.

Rubino also attended the board meeting, thanking supervisors for the $500,000 they have already allocated to his defense, but saying that additional funds will be needed for a retrial.

“I’m out of time, I’m out of money and I need your help,” he said. “I’m going to fight.”

Rubino’s attorney once estimated that legal expenses for his first trial might top $1.3 million. But Rubino said Tuesday that the total will actually be less than $1 million, though a final figure has not been calculated.

He estimated that he saved more than $200,000 through discounted attorney fees and by having family members and friends do clerical, paralegal and investigative work.

Three jurors from Rubino’s trial also addressed the supervisors, saying that prosecutors simply did not prove their case.

“I believe Ron Rubino is 100% innocent,” said juror Christina Marie Sinclair. “There was no evidence to prove him guilty. . . . I’m really shocked that the D.A. wants to retry the case.”

Juror Diana Chairez said she wrote Capizzi a letter saying he would “save the county a lot of money” by dropping the charges.

Another trial “would lead to the same result or an acquittal,” she added. “Either way, [Capizzi] will look silly.”

Steiner announced Tuesday that he plans to stay in office through the end of his term in 1998 and hopes to serve as board chairman next year.

Steiner is a former director of the Orangewood Foundation, the fund-raising arm of the Orangewood Children’s Home, and sits on the board of several national children’s services organizations. He said he has entertained offers to return to the child services field but feels an obligation to remain with the county out of loyalty.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Stanton Says

Board of Supervisors Chairman Roger R. Stanton blasted Dist. Atty. Michael R. Capizzi’s bankruptcy-related prosecutions Tuesday and made several proposals “aimed at restoring fiscal responsibility in all departments. . . .” The highlights:

* Perform financial audit of district attorney’s office aimed at determining how much money has been spent on civil and criminal cases related to the bankruptcy.

* Appoint “blue ribbon commission” to study decision-making process of the office and its relationship with Orange County Grand Jury.

* Invite state attorney general’s office to examine any questions of possible prosecutorial misconduct.

* Expand previously planned grand jury study of district attorney’s office to address some of Stanton’s concerns.

Source: Supervisor Roger R. Stanton

Researched by SHELBY GRAD / For The Times