11 Innocent Plea in Alleged Fraud Scheme:...

11 Innocent Plea in Alleged Fraud Scheme: Eleven people, including two Orange County residents, pleaded not guilty in Seattle federal court Friday in connection with an alleged $25-million fraud against the nation’s banks and thrifts operated out of a San Clemente office building. The scheme’s alleged mastermind--Capistrano Beach resident Douglas P. Blankenship--is in the process of being extradited to Seattle and is expected to be arraigned next week. The case is being prosecuted in Washington state because the scheme’s largest victim--Puget Sound National Bank--is headquartered there.