ORANGE : Conflict-of-Interest Trial Is Under Way

The city’s conflict-of-interest trial against former Planning Commissioner Don Greek opened Tuesday in Orange County Superior Court, nearly one year after the city filed its lawsuit to recover more than $103,000 paid to Greek’s engineering firm while he was a city official.

The suit filed by the City of Orange and the Orange Redevelopment Agency alleges that Greek, a civil engineer, and his company, DGA Consultants, improperly accepted at least eight city contracts totaling $103,167 between 1986 and 1990.

The suit claims Greek used his position to influence the city staff and other members of the Planning Commission “for the purpose of benefiting his own personal and financial interests.”

The non-jury trial, which is expected to last from seven to 10 days, proceeded despite a $20-million claim filed by Greek against the city and numerous attempts to settle out of court.

During a three-hour morning session in the Santa Ana courtroom, Commissioner Ronald L. Bauer heard seven pretrial motions to limit testimony in the case before Greek took the stand.

Bauer ruled, among other decisions, that the defense would not be allowed to present testimony that implied other examples of conflict-of-interest practices at City Hall.

In another ruling, Bauer decided that City Council members will not be required to testify until the defense reveals the purpose that their testimony would serve. All council members, including Mayor Gene Beyer, have been subpoenaed by the defense to testify.

During preliminary questioning, Greek was asked to identify various contracts and confirm the time frame for transactions with the city.

Greek has called the city’s lawsuit a “misuse of city funds” and has contended from the start that the allegations were part of a political vendetta to keep him from running against two incumbent City Council members in the 1990 election. Greek served on the Planning Commission from 1983 to August, 1990, when he resigned to run for City Council.

In September, Greek filed a $20-million claim against the city and its Redevelopment Agency, alleging selective prosecution, discrimination and violation of civil rights.

After testifying Tuesday, Greek, who says he has developed a heart flutter since the city began its proceedings against him, said he “took extra heart medication” before coming to court.

“You can’t help but be nervous and concerned,” Greek said in an interview. “It’s all we think about and talk about every day. This isn’t a big deal for the council, but it is for us.”

The conflict-of-interest case began to unwind in September, 1990, after political watchdog Shirley L. Grindle of Orange discovered a packet of documents delivered anonymously to her doorstep.

Grindle filed a complaint with county investigators, alleging that the documents showed that Greek had violated state conflict-of-interest laws by accepting at least eight contracts while sitting on the Planning Commission.

After the district attorney’s office announced that it would investigate Greek on criminal charges, the City Council voted unanimously in a closed session to sue the engineer. County prosecutors ultimately dropped the criminal case because of statute of limitations problems and lack of evidence.

If Greek loses the case, he could have to pay up to three times the amount paid to his firm by the city. But his attorney, Robin Fairbairn, has said that the city must prove that Greek had a conflict of interest and that “they are not going to be able to do that.”

The trial is scheduled to continue today at 9 a.m.