Fraud Charge Is Dropped in Sale of Tract for Parkland

Federal prosecutors have dismissed a felony charge against Moshe Ziv, one of three men accused of fraudulently inflating the value of a Santa Monica Mountains tract that was sold to the National Park Service for a record $8 million.

In a related development, a second defendant, Radoslav L. Sutnar, a prominent figure in development issues in Los Angeles, has filed a request to change his not-guilty plea today. Along with the dismissal of charges against Ziv, a guilty plea by Sutnar would leave only Encino real estate developer Jerry Y. Oren to face charges in connection with the parkland sale.

The charges stem from a transaction in 1985 in which Oren sold a 336-acre tract of oak-dotted meadows near Agoura Hills to the Trust for Public Land, a nonprofit organization that purchases land nationwide for later resale to federal or local parks agencies.

The San Francisco-based trust bought the land for $7.5 million and immediately resold it for $8 million to the Park Service, which had long sought the parcel for its Santa Monica Mountains National Recreational Area. The parcel was the most expensive ever purchased for the recreational area, a loose string of parks and trails between Griffith Park and Point Mugu State Park in Ventura County.

The complex, three-party deal could not have taken place without an appraisal confirming that the land was worth what the government was paying. The appraisal commissioned by the trust set the value of the property at $8.4 million, a figure based largely on an anonymous competing offer to purchase the land for $9.3 million. That offer allegedly was fabricated by Ziv at Oren’s request, according to an indictment handed down by a federal grand jury on March 12.

An earlier appraisal, commissioned by the trust but never seen by the Park Service, set the value of the land at $5 million.

Facing Two Counts

Oren, 51, a developer with dozens of holdings around Los Angeles, was charged with two counts--one of wire fraud and the other of making a false statement in a matter within the jurisdiction of the National Park Service. If convicted, he faces a maximum penalty of 10 years in jail and $11,000 in fines.

Charges of aiding in the wire fraud were filed against Sutnar, 56, who was a consultant to Oren at the time of the land sale, and Ziv, 36, a partner in a New York real estate firm. Sutnar faces up to five years in jail and a $1,000 fine if convicted.

The felony charge filed against Ziv in March was dropped April 30, said Assistant U. S. Atty. Charles J. Stevens, who is prosecuting the case.

Stevens said it would have been difficult to prove that Ziv knew his allegedly fabricated offer was going to be used to defraud someone. Stevens said his decision was in part the result of several meetings with Ziv’s attorney, Joshua C. Needle.

Ziv, an Israeli citizen now living in that country, will testify in Los Angeles if Oren comes to trial, Needle said. He said Ziv received “no immunity and no deal” to provide evidence against Oren or Sutnar in return for the charges being dropped.

Opposes No-Contest Plea

As for the expected change of plea by Sutnar today, Stevens said the U. S. attorney’s office opposes any change to no contest. Sutnar, an independent real estate consultant, still may choose today to stand by his not-guilty plea, Stevens said. If so, he would stand trial with Oren before U. S. District Court Judge Harry L. Hupp.

Neither Sutnar nor his attorney could be reached for comment Wednesday.

Stevens said the May 26 trial date is expected to be delayed at a status conference today because Oren’s attorney, Burton Marks, is seriously ill.