Judge Dismisses One of Eight Counts Against Nathanson

A federal judge Tuesday threw out one of eight felony counts against ex-Coastal Commissioner Mark L. Nathanson and agreed to delay his political corruption trial until mid-April.

Responding to a series of defense motions, U.S. District Judge Lawrence K. Karlton ruled that Nathanson had not violated federal law when he failed to reveal the source of $106,000 on his 1988 federal income tax returns. The judge’s ruling in favor of the 53-year-old Beverly Hills real estate broker left in place seven other criminal counts, including charges that he had filed false tax returns for 1987 and 1990.

Karlton, after a spirited argument between prosecutors and defense attorneys, refused to throw out the central charge in the government’s case--that Nathanson had used his office as a racketeering enterprise, attempting to extort a total of $1.2 million from people who wanted to develop property along the California coast. Among those allegedly approached for payment were such Hollywood luminaries as actor Sylvester Stallone, former Fox Inc. chairman Barry Diller and filmmaker Blake Edwards.

The judge agreed to give Nathanson an additional 60 days to prepare for trial in response to a revised indictment filed against the ex-commissioner last month. Defense attorney Stephen L. Braga had asked for 90 days, but Karlton said he was aware that U.S. Atty. George L. O’Connell’s days in office were numbered. A Republican appointed to his post by President Bush, O’Connell said that he wanted to prosecute the case himself but acknowledged that he could be replaced at any time by Democratic President-elect Bill Clinton. Karlton set the new trial for April 13.