Ex-City Councilman Hodges’ Conviction Overturned by Court

Despite finding that there was “legally sufficient evidence” to support the jury’s guilty verdict, the U.S. 9th Circuit Court of Appeals on Thursday reversed the 1983 federal loan-fraud conviction of former Westminster City Councilman Guinn (Gil) Hodges.

“Oh Lordy, my heart is pounding like a triphammer,” Hodges said upon learning of the appellate decision. “It wasn’t totally unexpected, but when you hear the news, you just can’t find the adjective to describe your feelings, at least I can’t.”

A spokesman for the U.S. attorney’s office said it would be several days before a decision is made about whether to retry Hodges.

The three-judge panel ruled that U.S. District Judge David Kenyon erred by allowing the jury to hear prejudicial testimony from Hodges’ ex-wife, Paula Johnson Fisher. She was allowed to testify that he offered to “make her look good” with the FBI (which was investigating the alleged loan scheme) in return for a payment of $5,000.

Denied Conversation

She also testified that Hodges said the payment would mean that her name would be removed from a “hit list” that allegedly was in the hands of Hodges’ late brother and that she would be protected from physical harm. Hodges has denied that any such conversation ever took place. Hodges was not charged with extortion in the case, and the appellate judges declared:

“Our reluctance to sanction the use of evidence of other crimes stems from the underlying premise of our criminal justice system that the defendant must be tried for what he did, not for who he is. Under our system, an individual may be convicted only for the offense for which he is charged and not for other unrelated criminal acts which he may have committed . . . .

‘Reversible Error’

“Although we find the evidence presented to be legally sufficient to support the jury’s verdict, we agree with Hodges’ claim that the admission of the testimony relating to the extortion attempt constituted reversible error.”

The 18-page opinion was written by Judge Stephen Reinhardt. Judges Jay Clifford Wallace and Betty B. Fletcher concurred.

Hodges, 41, had been a councilman since 1977 and resigned by telephone only minutes before his Sept. 28, 1983, sentencing would have automatically removed him from office.

Asked Thursday if he will attempt to regain his council seat, Hodges replied:

“No, I don’t want to be out front in politics anymore.”

‘I Wouldn’t Disagree’

Referring to the appellate judges’ statement that there was still sufficient evidence for a guilty verdict, Hodges said: “I wouldn’t disagree with that at all . . . . I said as I walked out of the courtroom that if I had been in the jury box, I would have voted the same way as that jury did . . . . The evidence they heard was certainly of the kind that would make you do that, but the trouble was, it wasn’t the truth.”

Hodges said he has been unable to work for several months because he underwent major back surgery and is now disabled. He had been working for a landlords’ eviction service and several law firms as a clerk. Hodges said he has a law degree but cannot take the bar exam because his case is unresolved.

Prosecutor Daniel Broderick is no longer with the U.S. attorney’s office and was unavailable Thursday.

Four co-defendants, including Fisher, pleaded guilty or no contest in the same case, were fined $5,000 and placed on probation, while Hodges was sentenced to three months in prison and ordered to pay a $2,000 fine.

Remained on Bail

Hodges has remained free on his own recognizance pending appeal.

Hodges was convicted of falsely verifying information submitted to a federally insured lending institution. The prosecution contended that the scheme involved people who represented themselves as residential buyers, when in fact they were real estate speculators. The scheme, the prosecution alleged, involved the purchase of about 12 homes in the Huntington Beach area and was masterminded by Hodges’ late brother, Barclay, who was shot to death lin 1982 in a cocktail lounge at John Wayne Airport.

The prosecution alleged in a pre-sentencing report filed with the court that, with Gil Hodges’ knowledge and cooperation, Barclay Hodges attempted to use the real estate scheme to launder profits from the sale of cocaine.

Hodges had several lawyers during the trial and the appellate phase of the case.

One of the lawyers, Barry A. Bisson of Huntington Beach, said of Thursday’s ruling:

“It’s a great advance in civil rights when you can’t be convicted on the basis of uncharged crimes. It happens all the time in criminal cases, but at least our appellate court is saying that it isn’t right.”

‘Pleased With Decision’

Roger Agajanian, another attorney who represented Hodges, said: “I’m pleased with the decision because it allows for further investigation to show that there was evidence beneficial to Gil that was withheld by prosecution witnesses.”

In court documents filed before Hodges’ sentencing, the defense alleged that some of the prosecution witnesses perjured themselves.

Kenyon, the trial judge, is now presiding over the spy trial of former FBI agent Richard Miller.