City Sues Ex-Planner on Conflict Allegations : Litigation: Orange City Council seeks to recover more than $100,000 from former commissioner Don Greek and his engineering companies. He is suing too.

The City Council has filed a conflict-of-interest lawsuit against former Planning Commissioner Don Greek, seeking to recover at least $104,000 paid to his engineering firms while he was a public official.

Greek used his position to influence other members of the Planning Commission, Planning Department, city staff and City Council members “for the purpose of benefiting his own personal and financial interests,” according to the lawsuit.

The city filed the suit last week in Orange County Superior Court, five weeks after voting unanimously to seek repayment of money paid to DGA Consultants Inc. and Don Greek and Associates. Greek had been warned in writing by Assistant City Atty. Gene Minshew that the contracts could be a conflict of interest.

“I really don’t have any comment except that (the city is) following through with the procedure and we will be vindicated in the end,” Greek said Tuesday. “I am optimistic that we will prevail.”

Greek has filed a $20-million claim against the city, paving the way for a defamation lawsuit. Greek was a planning commissioner from 1983 until his resignation in August to run for City Council. He lost in the Nov. 6 election.

Council members voted unanimously to sue after the district attorney’s office disclosed that it was investigating conflict of interest allegations against Greek.

“The bottom line here is that as elected representatives of the people, we have a reputation to take a stand in regard to ethical behavior and potential conflict of interest,” Councilman William G. Steiner said.

The district attorney’s office is trying to determine if Greek has violated State Government Code 1090, a felony punishable by a fine of $1,000 and up to three years in prison.

The code states that state, county and city employees and officers “shall not be financially interested in any contract made by them in their official capacity or by any body or board of which they are members. . . . “

Since the contracts date back to 1986, the statute of limitations could have an effect. The statute for criminal prosecution of a conflict of interest violation is within “three years of discovery of the offense or within three years of when it reasonably should have been discovered,” Deputy Dist. Atty. John Conley said.

The city will argue that the statute of limitations should cover at least four years, which would include the Sandpiper School contract, a $20,000 agreement awarded in 1986 just 12 days after Greek received a conflict-of-interest warning from Minshew, according to Leo B. Newton of the law firm of Corrado & Newton, special counsel to the city.

Conley said he is also investigating whether Greek may have violated conflict-of-interest provisions of the Political Reform Act, an misdemeanor offense. Conley noted that his investigation is still weeks from completion because he is seeking additional city documents, including minutes from Planning Commission meetings.

According to the city’s lawsuit, Greek was acting in his official capacity as a planning commissioner when the city awarded his firms seven contracts ranging from about $1,400 to $58,000.

Among the contracts outlined in the suit is one in which the city claims that Don Greek and Associates appears to have solicited city staff members to win a project. In a 1987 letter to city recreation superintendent Richard Kollen, firm partner John Cuervo proposed a $23,500 plan to provide preliminary engineering and design work for the relocation of a building.