Sentencing Delayed in Ramona S&L; Fraud Case : Courts: The judge says he needs time to read the hundreds of requests for leniency.

The sentencing of two Orange County businessmen convicted of diverting millions of dollars from a Santa Ana thrift was delayed Monday after the court was inundated with hundreds of letters from friends, associates and supporters requesting leniency.

John L. Molinaro and Donald P. Mangano Sr.--former owners of Ramona Savings & Loan--were scheduled to be sentenced in U.S. District Court in Los Angeles following a conviction in October on more than 30 charges each of bank fraud and conspiracy.

But federal Judge David V. Kenyon told a packed courtroom that he was postponing the sentencing until Feb. 13 to give himself enough time to read the letters and supporting materials.

“In the 342 years I’ve been a judge,” Kenyon said half jokingly, “I have never been deluged with so much material. I do not feel comfortable I can do justice here” without additional time.

Mangano, 53, of Huntington Beach, expressed some disappointment with the delay.

“I think delays are incredibly harmful. It takes a certain attitude to gear up for an ordeal like this,” Mangano said Monday. “It’s kind of like going into the Super Bowl with all the emotional pressure, and then they say the game is delayed because of rain.”

Molinaro, 49, of San Jose, wasn’t at Monday’s proceeding. He is being held at Metropolitan Detention Center in Los Angeles.

The trial of the two men has drawn attention because it is the first criminal prosecution of owners of a failed savings and loan in Southern California. And the sentencing of Mangano and Molinaro has generated an outpouring of diverse opinions.

Assistant U.S. Atty. Steven E. Zipperstein has recommended that the two men receive 55 years in prison between them and be forced to pay restitution and fines totaling $15 million.

Federal officials--including Federal Deposit Insurance Corp. Chairman William L. Seidman and Office of Thrift Supervision Director M. Danny Wall--recently submitted letters supporting Zipperstein’s request.

“This is an extremely egregious example of insider abuse in the savings and loan industry,” said Mark Gabrellian, senior counsel for the FDIC. “It’s almost a textbook case of insider fraud.”

Gabrellian was just one of several FDIC attorneys in attendance Monday. The FDIC has filed a separate $30-million civil suit against Mangano and Molinaro that is scheduled to go to trial in U.S. District Court in Santa Ana on May 1.

Both men’s attorneys claim that the government is using Molinaro and Mangano as scapegoats for the nation’s thrift debacle, which is expected to cost taxpayers more than $200 billion.

Those appealing for lighter sentences include Jerry Tarkanian, basketball coach at the University of Nevada, Las Vegas, and Susan Feliciano, wife of singer Jose Feliciano. Mangano once worked for Feliciano and has done volunteer work with Tarkanian.

“The government’s requests have been totally void of any compassion,” said Gerald V. Scotti, Molinaro’s attorney. He has asked Kenyon to sentence his client to between three and five years incarceration plus community service; Zipperstein’s recommendation was 25 years in jail and $7.8 million in fines and restitution.

The prosecution has recommended that Mangano receive 30 years in jail and pay $8.3 million in restitution and fines.

Mangano is a quadriplegic, and his attorney has requested probation because of his client’s health.

“I would hope Judge Kenyon would show some compassion to my physical condition, but more importantly, I would hope the judge would not be swept up with the sensational political hype that is surrounding the case and applies a sentence that is equitable with the conviction,” Mangano said. “Naturally, I’m going to appeal the conviction.”

Ramona collapsed in 1986 and subsequently required a $65.5-million bailout.