LAGUNA NIGUEL : AIDS Victim’s Aunt Denies Theft in Court

Deborha Jean Franckewitz pleaded not guilty Thursday to a charge that she stole $52,000 from her 18-year-old nephew, a hemophilic AIDS patient. But she pledged to make partial restitution.

Franckewitz’s attorney, Gary W. Tannehill, reiterated in South County Municipal Court Franckewitz’s desire to return $16,000 to her nephew, Channon Phipps.

Phipps, nationally known for his battle to stay in school after contracting the AIDS virus during childhood treatment for hemophilia, was not present at the hearing. Franckewitz, who is Phipps’ legal guardian and has cared for him since he was a baby, faces a felony grand theft charge.

Tannehill said Phipps will receive $16,000 restitution as soon as a check written by Franckewitz on an account in Idaho clears.

“We are awaiting transfer of funds from Idaho,” Tannehill said outside the courtroom. He refused to discuss the remaining $36,000 other than to say that it “is not readily accessible.” Earlier this week, Franckewitz returned to Phipps the pink slip and keys to his 1992 Ford Mustang.

“There will be an accounting of the ($36,000) funds at the appropriate time and place,” Tannehill said adding only that “my client never intended to deprive Channon of anything that was his.”

Franckewitz is being held at Orange County Women’s Jail in lieu of $250,000 bail.

Phipps was born a hemophiliac to parents struggling with alcohol and drug problems. At age 11, while Phipps was being treated for the disease at UCI Medical Center, he learned that he had been exposed there to the AIDS virus through tainted blood. Phipps sued the hospital and in 1989 settled for $125,000. After legal expenses were paid, the remaining money--$78,600--was put in a trust fund until Phipps turned 18.

Last month, after spending about $18,000 on the Ford Mustang and another $5,000 on other purchases, $52,000 remained in Phipps’ trust fund.

Prosecutor Joseph D’Agostino alleged that on Nov. 2, one day after Phipps’ 18th birthday, Franckewitz tricked Phipps into believing that the state had put a lien against that money to pay for his AZT, a medicine used to treat AIDS patients. To protect that money, Phipps signed documents to transfer the funds to an account under Franckewitz’s name.

When Phipps, who had gone to live with his father in Anaheim, went to his aunt’s home in late November to get the money and car back, she was gone.

Franckewitz and her family had gone on a planned trip to Idaho, taking the money and the car. She was arrested Dec. 11 when she and her family returned to a Laguna Hills motel.