Ferrante’s Defense Rests in Consolidated S&L; Case

Attorneys for Richard A. Ferrante rested the defense Tuesday after a federal judge refused to dismiss the three remaining criminal charges against the former owner of Consolidated Savings Bank in Irvine.

Final arguments in the case are to be heard Tuesday by U.S. District Judge Mariana R. Pfaelzer, who is presiding over the non-jury trial of Ferrante and five co-defendants in Los Angeles.

Brian O’Neill, one of Ferrante’s attorneys, said the defense called only six witnesses Tuesday. Their testimony was intended to undermine the credibility of witnesses the government presented during the first three weeks of the case.

On Thursday, government prosecutors rested their case after acknowledging that they had failed to support most of the allegations against the former Orange County banker. Pfaelzer granted their motion to dismiss 11 of the 14 counts against Ferrante.

The remaining charges accuse Ferrante, 42, of conspiracy, misuse of thrift funds and fraudulently benefiting in the proceeds of a $9.5-million loan to a Consolidated client. If convicted, he would face a sentence of as much as 15 years in prison. Maximum prison time before the 11 counts were dropped would have been 70 years.

O’Neill said the defense for five co-defendants, including former Consolidated Savings Chairman Ottavio A. Angotti, were also rested Tuesday.

Government prosecutors in the case could not be reached for comment.

The thrift was declared insolvent and seized by federal regulators in 1986. Ferrante and the others were indicted in February, 1991.