Marcos’ Ex-Mistress May Use Insanity Plea

A lawyer for the self-proclaimed former mistress of deposed Philippine President Ferdinand Marcos, said Friday that he may use an insanity defense against charges that she obtained $18 million in fraudulent loans.

The proposed defense follows revelations that both the former movie star and her husband, also indicted on bank fraud charges, have been diagnosed with a life-threatening virus that lawyers say may have impaired their mental abilities.

In a letter filed in federal court, Villagran’s physician said that her “probability for survival over the next five years is acutely compromised by her illness” and said that contact with other prison inmates would present “a significant but undefined risk.”

‘A Major Factor’

Dr. Timothy C. Bryant also said the undisclosed virus “has a high probability of being a major factor with regard to the questionable business decisions she has made over at least the last 36 months.”

The insanity defense was tentatively proposed by Villagran’s new lawyer, Richard Sherman, over the objections of her longtime attorney, Rayford Fountain, who said he has seen no evidence of mental trouble.

“I’ve never once seen evidence this lady is impaired. She and I have had detailed discussions about the case, and she has demonstrated competence in her knowledge of the law,” Fountain told U.S. District Judge Pamela Ann Rymer.

Fountain said the government has “devastating” evidence against Villagran, including a videotape shot in her former Pasadena mansion in which she goes into detail about how she acquired her money. Moreover, Villagran has filed and argued numerous complicated motions in her own bankruptcy case that demonstrate her mental acumen, Fountain said.

Extension Denied

At Friday’s hearing, Sherman did not say that he was certain he would use an insanity defense but sought a court order extending the start of the couple’s trial, scheduled for Tuesday, in order to arrange psychiatric examinations.

Rymer denied the extension, ruling that there is “no substantial indication that it (the defense) would be valid or viable in this case.”

Sherman filed with the court a series of expert declarations relating to Villagran’s medical problems, but the documents were ordered sealed, and lawyers refused to elaborate.

Sherman did say, however, that Villagran suffers from a virus that attacks the central nervous system and has also had an “invasive” surgical procedure. He also raised the possibility that Villagran may have suffered a lack of oxygen flow to her brain because of a problem with her carotid artery.

42-Count Indictment

Villagran’s husband, Sergio, suffers from the same virus and sought an extension of time to explore a similar defense, said his lawyer, Anna Ho.

The couple are charged in a 42-count federal indictment with obtaining $18 million in fraudulent loans from 13 banks by claiming thousands of dollars in nonexistent income and equity. The indictment also charges that the couple stashed away more than $6 million in antique furnishings, artwork and jewelry in an attempt to conceal it from creditors.

Villagran is free on $100,000 bond, but her husband remains in jail in lieu of bail.