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Prosecutors Ask Court to Transfer Fraud Defendant

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U.S. Magistrate Ronald W. Rose said Monday that he will consider a request by federal prosecutors to transfer Capistrano Beach resident Douglas P. Blankenship to a prison in Tacoma, Wash., while he awaits trial on charges that he conspired to defraud financial institutions in seven states of $25 million.

The U.S. attorney’s office in Tacoma, headquarters for the alleged scheme’s largest victim, is trying the case against Blankenship.

Rose scheduled a a hearing for Nov. 29 on the matter.

The magistrate also denied a second bail request by former Huntington Beach resident Michael E. Hilander, one of 14 co-defendants with Blankenship.

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