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Trial Begins for Former Mayor of West Hollywood

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Times Staff Writer

The trial of former West Hollywood Mayor Valerie Terrigno, who is accused of embezzling nearly $11,000 while she directed a now-defunct counseling program, began Tuesday with the federal prosecutor accusing the gay activist of using the money as “her personal slush fund.”

“Money intended for the poor and homeless (instead) was deposited into her personal (bank) account,” Assistant U.S. Atty. Richard M. Callahan said in his opening statement in Los Angeles federal court.

For the record:

12:00 a.m. April 2, 1986 For the Record
Los Angeles Times Wednesday April 2, 1986 Home Edition Part 1 Page 2 Column 1 Metro Desk 2 inches; 65 words Type of Material: Correction
In a March 12 story about the trial of former West Hollywood Mayor Valerie Terrigno on charges that she embezzled funds from Crossroads Counseling Service, The Times reported that Jay Jay Vega, a friend of Terrigno, testified to cashing a “Crossroads check.” In fact, she testified that she cashed a check but did not say that it was a Crossroads check. According to court records, the check was drawn from Crossroads funds, but it did not have any identification on it.

“There is no evidence that Valerie Terrigno took money with the specific intent to embezzle,” defense attorney Howard Weitzman countered in his opening statement, adding that certain people, whom he did not name, lied to FBI investigators about the case.

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Terrigno, 32, was indicted last Oct. 23 on 14 counts alleging that she embezzled $10,795 while she was executive director of the Crossroads Counseling Service in Hollywood between 1982 and 1984. Two of the counts were subsequently dropped.

The indictment states that Terrigno used the funds to buy food and clothes for herself and her friends, to pay her rent and to cover repairs on her sports car.

Crossroads opened in 1981 primarily to counsel Hollywood’s poor--particularly homosexuals--seeking jobs or shelter. The program ended in December, 1984, when its federal funding expired.

Terrigno, who is still on West Hollywood’s City Council, and her lawyer have insisted that she was targeted for prosecution in part because of her sexual orientation and because of the city’s large gay population.

Callahan ignored that assertion in court and argued that Terrigno used her position to divert funds given to Crossroads by the federal Emergency Management Agency for her “own personal benefit.” Because she was the executive director, there was little scrutiny of what Terrigno did with the money and she was allowed to use it as “her personal slush fund for her own whim,” the prosecutor said.

Weitzman told the jury that other people--whom he did not identify--were responsible for the charges against Terrigno.

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“There’s been a cover-up by certain individuals who have lied to the FBI,” said Weitzman, who declined to elaborate outside of court.

The defense attorney told the court that Crossroads was in financial chaos during the period of the alleged embezzlement and added that Terrigno sometimes “used some of her own money to help needy people.”

Testimony of Former Worker

Among the first witnesses was Jay Jay Vega, a student who worked at one time at the Gay and Lesbian Community Service Center in Hollywood.

Vega testified that she was called by Terrigno in May, 1984, and was asked if she “could use some money.” Agreeing to meet Terrigno at a local bank, Vega testified that Terrigno made out a Crossroads check to her for $510 and asked her to cash it. The witness said she cashed the draft and then gave $310 to Terrigno. Vega said she kept the remaining $200 for herself.

Under questioning by Callahan, Vega, who was granted immunity to testify, said she was not entitled to receive any federal funds administered by Crossroads.

“I didn’t understand it to be a loan, so I assumed it was a gift,” said Vega, who acknowledged that she was dating Terrigno at the time.

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The trial began after 14 jurors, including two alternates, were selected. Two perspective jurors were excused after they admitted to U.S. District Judge Laughlin E. Waters that they had some “preconceived ideas about the morality of persons who are homosexual.”

The trial is expected to last about three days.

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