Judge Refuses to Free Uncooperative Witness : Santa Ana Businessman Must Answer Jurors’ Questions to Gain His Freedom, Tashima Says

A Santa Ana businessman described by federal prosecutors as “extremely uncooperative” will remain in prison until he provides documents and information to a federal grand jury, a Los Angeles District Court judge ruled this week.

Gerald Ramos is the target of a fraud investigation into the circumstances surrounding $14 million in loans that he and others got from a group of East Coast banks, according to federal prosecutors. To date, the businessman has not been charged with any offense.

Earlier this week, U.S. District Judge A. Wallace Tashima refused to free Ramos, 36, who has been at the Federal Correctional Institute at Terminal Island since Christmas after being found in contempt of court for failing to cooperate with investigators.

Controls Owns Destiny

“His (Ramos’) destiny is in his own hands,” said Assistant U.S. Atty. Terree Bowers. “As soon as he complies, he will be released.”

He said Ramos could be freed after the grand jury disbands sometime in February . “They won’t even tell us specifically what they (the federal prosecutors) want,” said Robert Kennedy, Ramos’ attorney. Kennedy said Ramos “has been cooperating” but that certain documents sought by the government are missing.

However, Bowers said Ramos has been “extremely uncooperative” because he has “disobeyed grand jury subpoenas and a court order.”

A federal grand jury is investigating “several schemes to defraud investors,” according to court records.

Transaction Described

One transaction under investigation involves Ramos’ 1984 purchase of 442 acres in Chatsworth, a west San Fernando Valley community. Ramos and a partner bought the land for about $1 million. They subsequently re-sold it for $14 million to another partnership they controlled, according to Guy Ormes, an Orange County deputy district attorney who has been designated to serve as an assistant U.S. attorney for this investigation. Relying on a $20-million appraisal, the partnership then obtained about $14 million worth of loans from a group of East Coast banks, Ormes said.

Ramos’ attorney said many of the documents the government wants have been missing since Ramos’ Santa Ana office was searched by investigators from the Orange County district attorney’s office in November, 1984.

Kennedy said Thursday that Ramos’ secretary saw the investigators putting “documents in their pants and coat pockets”--an allegation denied by Ormes. “I cannot imagine that such a thing happened,” Ormes said, adding that neither he nor Kennedy were at the office during the court-ordered search and seizure, which included about 10 other locations.

Four Appearances

Although he has appeared in front of a federal grand jury four times, Ramos has refused to cooperate, Ormes said.

Kennedy also accused the government of investigating Ramos because he is a Latino.

“His problem is that he is a Mexican in Orange County who has done quite well for himself,” Kennedy said.

Ormes said Kennedy’s accusation of racism is “probably one of the most ridiculous statements I’ve heard.”