Charges Thrown Out Against 1 in Gem Case : Courts: Three Downtown merchants still face charges in complicated trial over alleged theft of rare ruby.

A judge dismissed a charge Monday against one of four men standing trial in the alleged theft of a rare Burmese ruby from a downtown jewelry merchant.

Van Nuys Superior Court Judge Kathryne Ann Stoltz ruled that there was not enough evidence to show that Antranik Harbouian, a 46-year-old Montebello resident, had anything to do with an alleged plot to ransom a 6.76-carat gemstone worth as much as $500,000.

Stoltz also denied defense motions to throw out charges against the remaining three defendants--all jewelry dealers. While acknowledging that evidence against one of the three “is somewhat conflicting,” the judge said a jury should decide if he is guilty.

The rulings came after prosecutors wrapped up their case, one that began with some fanfare last summer when nearly two dozen law enforcement officials, backed up by a police helicopter, arrested five men during a sting operation in Encino. (Charges against another of the five arrested were previously dismissed.)

The complicated tale of the ruby began when German gem trader Peter Morlock gave the ruby on consignment to Ron Levi in 1990.

The agreement called for Levi to either return the stone within two days or pay Morlock $527,000. But Levi gave the gem to another broker, Ali Reza Paravar, in what defense attorneys contend is a common practice among jewel wholesalers.

When Morlock went to claim the ruby, Paravar refused to turn it over because Levi owed him about $300,000, according to Paravar’s testimony Monday.

The defense contends the deal between Paravar and Levi was a separate and unique transaction, and Morlock should have taken the matter up with Levi. Levi cannot be found and did not testify.

Paravar, a 42-year-old Woodland Hills man, is on trial for grand theft. The two other defendants--Rasekh Uddin Siddiqui, 46, of Chatsworth, and Behzad Saba, 33, of Irvine--face charges of receiving stolen property for allegedly trying to extort $360,000 from Morlock in exchange for the ruby.

Harbouian, also a Downtown jewelry dealer, introduced Morlock to Saba, which set up the chain of events leading to the alleged extortion attempt. Harbouian maintained he was only trying to help Morlock, a longtime business associate, regain his stone.

With Deputy Dist. Atty. Eduards Abele trying to a convince a jury that the three now on trial conspired to profit from the ruby, defense attorneys maintain the real issue is that Morlock got burned in a business deal gone bad.

“The bottom line is Mr. Morlock acknowledges this is a bad business deal, and he would do anything to get his stone back,” said defense attorney Michael Gottlieb in asking Stoltz to dismiss charges against Saba.

Morlock initially went to police after Paravar refused to hand over the gem in October, 1990, but investigators refused to pursue the case, telling Morlock it was a matter best handled with a civil lawsuit.

Morlock, whose company has possession of the ruby, co-owns the stone with Lloyd’s of London, the insurance firm that paid him $250,000 when he reported that it was stolen.

Before concluding his case Monday, Abele presented evidence indicating that Paravar gave conflicting statements concerning the ruby to an FBI agent who was investigating Levi in 1990. A Los Angeles police detective also testified that Siddiqui, speaking to investigators after he was arrested in July, 1993, said, “I had a feeling it was stolen . . . but I wanted to make some money.”

Testimony in the trial is expected to conclude today.