Key Figures in Laguna Niguel Land Transfer Testify Before Grand Jury

Two key figures in the criminal investigation of a 1988 Laguna Niguel land transfer spent several hours Wednesday voluntarily testifying before the Orange County Grand Jury.

Against the advice of their attorney, former Laguna Niguel Community Services District manager James S. Mocalis and former district board attorney James S. Okazaki carried enlarged copies of development maps and boxes of documents as they entered the grand jury witness room in the County Courthouse.

In warning that they are potential suspects in the investigation, prosecutors invited--rather than subpoenaed--both men. According to law, testimony from witnesses who appear by subpoena cannot be used against them.

“I would rather not have a client go before the grand jury--it is a tool for the prosecution,” said attorney Marshall M. Schulman, who is assisting attorney Alan H. Stokke in representing Mocalis and Okazaki. “But they felt so strongly about their innocence that they wanted to appear.”

“I don’t think anything is going to come of this,” Schulman added. “I don’t know why they are doing this.”

Although he looked tired upon emerging from his two-hour appearance before the 19-member jury panel, Okazaki said, “I think they listened.”

After Mocalis spent much of the afternoon making his presentation to the jury and answering questions, he expressed optimism:

“I am very comfortable with the way they treated me,” Mocalis said. “They have allowed me to talk (uninterrupted). I am nervous in there because it is a difficult situation in my time alive, to appear to be accused of something like this. . . . I think they are listening to me very attentively, and I think they will give me a fair (hearing).”

District attorney’s investigators began the Laguna Niguel inquiry more than six months ago, after county officials expressed surprise that 96 acres of land set aside for public use had been deeded to a developer in February, 1988.

The deed--signed by then-community services district vice president James F. Krembas, witnessed by Mocalis and notarized by Okazaki--relinquished public control over the land and opened the property to development by Taylor Woodrow Homes California Ltd. Now the land holds about 100 houses that are part of Taylor Woodrow’s Marina Hills planned community.

Wednesday was the third day of grand jury hearings on the land transfer. Beside Morcalis and Okazaki, county parks official Eric Jessen was subpoenaed to appear for the second time.

Jessen, a top official in the county Environmental Management Agency, has said in earlier interviews that county officials were “horrified” by the land transaction.

When the grand jury opened hearings last week, investigators subpoenaed Laguna Niguel Mayor Patricia C. Bates and City Councilmen Paul M. Christiansen and Krembas. Also called was Laguna Niguel City Clerk Juanita Zarilla.