2 States Seek Extradition of Fraud Suspect

John C. Parsons, a Newport Beach-based oil lease seller arrested last week for alleged fraud and illegal securities transactions, was arraigned Monday in Central Municipal Court in Santa Ana on fugitive warrants from Arizona and Kansas.

Parsons, 55, is president of Citizens Oil & Gas Co. of Newport Beach, which officials in Kansas have described as a telephone boiler-room operation. He was arrested Thursday on a criminal warrant issued by Kansas authorities, who allege that Parsons used fraud to sell Alaskan oil leases to Kansas residents.

The Arizona warrant, issued after Parsons was arrested last week, charges the oil lease salesman with violation of probation. Parsons was on probation because of a 1981 felony theft conviction in Arizona.

The court ordered Parsons, who denied the charges contained in both warrants, to be held in Orange County Jail in lieu of $25,000 bail for each warrant. A second hearing to confirm Parsons’ identity--the first stage of an extradition hearing requested by Kansas authorities--is scheduled for Oct. 14.

Parsons’ attorney said Monday that he had not yet decided whether to oppose the extradition of his client for trial out of state. The Kansas state securities commissioner has charged Parsons with two counts each of securities fraud, sale of unregistered securities and operating as an unregistered securities broker.

Also, Arizona has accused Parsons of violating the terms of the probation to which he was sentenced in April, 1982, after being convicted in 1981 of two felony theft counts. Arizona authorities say Parsons violated his probation by his alleged criminal activities in Kansas and by offering to sell unregistered securities in Phoenix.