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Raider Ron Brown Accused of Business Fraud : Court order: He’s told his used-car business must turn over 29 reconditioned cars or nearly $283,000 to savings and loan.

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TIMES STAFF WRITER

Cornerback Ron Brown of the Raiders has been accused of using his Anaheim used-car business to defraud a troubled savings and loan out 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, claimed that Brown refused to surrender or pay for 29 cars given on consignment by the institution.

The savings and loan, which was the nation’s 15th largest before it was taken over by the federal government in February, is 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 buyers allegedly paid for them.

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

Brown, 29, a former Olympic track star who played wide receiver for the 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.

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 $282,815, 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, 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 were sold.

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