Grand Jurors Expected to Pursue Bankruptcy Probe

The 1996-97 Orange County Grand Jury, sworn in Tuesday, is expected to continue its predecessor’s investigation into possible wrongdoing leading to the county’s bankruptcy.

The civilian panel, consisting of 12 men and seven women, has been praised for its 37% minority composition, a more diverse makeup than most of the county’s previous grand juries. The Superior Court judges who pick grand jurors came under fire before last year for naming panels with few minority members.

But the new jury probably will make news for other reasons. Prosecutors have said it will resume the investigation of people in and outside county government who were involved in the bankruptcy. The bankruptcy probe forced the 1994-95 grand jury to extend its term six months.

The new grand jury is expected to focus on municipal finance firms and their dealings with the county before its investment pool collapsed.

“The new jury’s just picking up where we left off,” said Mario Lazo Jr., a retired advertising executive who was foreman of the outgoing jury.

Superior Court Judge David O. Carter, who oversees the grand jury, commended Lazo’s panel, which he said “responded to the public’s need and extended their term for another six months.”

That group left office Tuesday after a sometimes contentious term which saw the county declare bankruptcy in December 1994 and focused afterward on allegations of wrongdoing leading to the collapse.

By the end of its service, the panel had indicted former Assistant Treasurer Matthew Raabe and former Budget Director Ronald S. Rubino and accused Supervisors Roger R. Stanton and William G. Steiner and Auditor-Controller Steve E. Lewis of civil misconduct. It also issued reports criticizing county government, including one concluding that systemic mismanagement by the Board of Supervisors led to the financial catastrophe.

Lazo declined to say what work the grand jury had left undone. But he said the secret testimony before his panel, recently detailed in The Times, was “eye popping” at times. Among the revelations: former Treasurer-Tax Collector Robert L. Citron, who managed the county investment pool, relied upon a mail-order astrologer.

Citron pleaded guilty to six felony counts and awaits sentencing in February.

Lazo said that like his group, the new grand jury will have to quickly master the complicated world of securities trading.

“None of us knew what reverse repurchase agreements were and what inverse floaters were,” Lazo said. “We have a pretty good idea now.”

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New Panel

The 1996-97 Orange County Grand Jury is composed of 12 men and seven women, most of whom are retired:

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Name, Age Residence Occupation Beddow, John R., 58 Trabuco Canyon Retired Chandler, Lloyd H., 62 Orange Public affairs Fritzler, Richard L., 59 Fountain Valley Retired Gutmann, Leonard Lothar, 77 Yorba Linda Retired Hitchcock, Patricia Kearns, 56 Newport Beach Educational consultant Keesee, Dennis Ernesto, 64 Laguna Niguel Real estate appraiser Legere, Henry Fabian, 66 Los Alamitos Retired Lewellyn, Carol Marie * Seal Beach None Lou, Kingdon, 73 Tustin Retired MacLaren, George Hector, 72 Anaheim Retired McDowell, Barbara Jo, 68 Huntington Beach Retired Moreno, Rose Sumako, 60 Huntington Beach Teacher Murray, Patricia Margaret, 69 Laguna Beach Retired Navarrette, Hector Raul, 66 Garden Grove Retired Ortega, Albert A., 63 Lake Forest Retired Quiros, Jose Mario, 57 Irvine Retired Salamida, Mary Ann, 61 Huntington Beach Social planner Warburton, Francesca Anne * Yorba Linda Housewife Wecker, Donald W., 66 Fountain Valley Retired

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* Age unknown

Source: Orange County Superior Court