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Raiders’ Ron Brown Is Accused of Fraud : Dispute: Suit claims he refused to surrender or pay for cars consigned to him by an S&L; for resale.

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TIMES STAFF WRITER

Los Angeles Raiders cornerback Ron Brown has been accused of using his Anaheim used-car business to defraud a troubled savings and loan of nearly $283,000.

Legal documents filed in Orange County Superior Court show that San Diego-based Imperial Savings Assn., for whom Brown sells used cars on consignment, claims that Brown refused to surrender or pay for 29 cars given consigned to him by Imperial.

The savings and loan, which was the nation’s 15th largest thrift before it was taken over by the federal government in February, is now under the conservatorship of the Resolution Trust Corp. It has obtained a court order demanding that Brown either give back the cars or turn over the money that buyers allegedly paid for them.

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It was not immediately clear if Brown has complied with the order.

Brown, 29, who played wide receiver for the Los Angeles Rams for six seasons, is trying to resolve the dispute through negotiation, said attorney Charlotte J. Adams, who represents him and his business, Ron Brown’s Auto Center. She declined to comment further on the lawsuit.

The lawyer for Resolution Trust Corp. also declined to discuss the matter.

Resolution Trust Corp. said in its complaint against Brown that he used his business “for purposes of systematically and consciously committing acts of fraud, conversion, breach of fiduciary duty” and other wrongful acts against Imperial.

The dispute stems from a November, 1989, contract in which Brown agreed to recondition and resell used cars owned by Imperial Savings. The vehicles were to remain the property of Imperial until they were sold, and Imperial retained the right to repossess the cars at any time before they were sold, the lawsuit said. Brown was to deposit sales proceeds directly into an account at Imperial.

Between November, 1989, and April, 1990, Imperial delivered 29 cars to Brown worth a total of $282,815, including Mercedes-Benzes, Cadillacs, Hondas, Toyotas, Buicks and a Rolls-Royce, legal papers said.

On some of the cars, Brown gave Imperial sales contracts, but did not specify the purchase price, the court papers said. On others, it is alleged that he failed to give Imperial all or part of the sales proceeds from cars he claimed he sold, or failed to notify the savings and loan that they had been sold.

Court papers said that in one instance, a savings and loan official informed Brown that 18 of the cars would be repossessed because he had not notified the institution that they had been sold. But Brown said they had all been sold. Sandra Mathews, asset disposition manager of Imperial Savings, said in a court declaration that when she visited the lot, she found 10 of the 18 cars on the premises.

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