Ex-Rep. Garcia Guilty in Loan Extortion Case

Former Congressman Robert Garcia was convicted Friday of extorting a no-interest loan from the scandal-plagued Wedtech Corp. But the jury was undecided on whether he demanded illegal payoffs.

The jury also found that his wife, Jane Lee Garcia, was guilty of conspiracy and extorting $76,000 in payoffs from Wedtech.

The verdict in U.S. District Court in Manhattan was the second time the South Bronx Democrat and his wife were convicted in the case.

Garcia, 58, and his 50-year-old wife were retried after their convictions from a trial in 1989 were reversed on appeal.

Robert Garcia was convicted Friday on one count of extortion in relation to the $20,000 interest-free loan from Wedtech officers. But the jury said it could not reach a verdict on the conspiracy count and a second extortion charge involving a series of payments totaling $76,000 from 1984 to 1986.

Jane Garcia was convicted of conspiracy and extortion for the $76,000 in payoffs. The jury said it could not reach a decision on whether she was involved in the extortion of the interest-free loan.

A third defendant, Ralph Vallone, was convicted of extortion for funneling the payoffs from the now-defunct defense contractor to Jane Garcia.