Judge With Funds in Pool Recuses Self From Raabe Trial

A Superior Court judge who had some of his retirement funds ensnared in Orange County’s investment pool collapse has declined to preside over the criminal trial of the former assistant treasurer charged with contributing to the financial disaster, officials said Friday.

Orange County Superior Court Judge John J. Ryan cited the appearance of a conflict of interest in removing himself from the case of Matthew Raabe, who faces trial on six felony charges of securities fraud and misappropriating public funds.

Defense attorney Gary Pohlson has long contended his client cannot get a fair trial in an Orange County courtroom and has made no secret of his intent to seek a change of venue for Raabe.

But, Pohlson said, he had no complaints against Ryan, or Orange County Superior Court Judge Everett W. Dickey, who has agreed to take over the case.

“Judge Ryan just didn’t think it would look good,” Pohlson said, adding that “Ryan is a very fair judge who I’m sure would have done a fair job, and Judge Dickey is a fair judge.”

Dickey was assigned the case after it was determined that he does not have retirement funds tied up in the bankruptcy, Pohlson said.

Ryan and Assistant Dist. Atty. Jan Nolan, who is prosecuting the case, could not be reached for comment Friday. Nolan has said in the past that she would oppose a change of venue, which she maintains is unwarranted.

Raabe and his former boss, former Treasurer-Tax Collector Robert L. Citron, were indicted earlier this year for allegedly deceiving unsuspecting school districts, cities and public agencies into sinking money into the county’s investment pool.

Some retirement funds of county employees were also invested in the pool, and the county’s financial health is such that it remains unclear whether it can ever pay back all the money it owes.

Citron’s risky investment strategy ultimately lost $1.7 billion and forced the county to file for bankruptcy Dec. 6. It was the largest municipal bankruptcy in U.S. history, entailing hundreds of county layoffs and major service cutbacks.

The defense’s request for a change of venue would be based on the theory that every resident of Orange County--and therefore every potential juror--is affected by the bankruptcy, making it impossible for Raabe to have a fair and impartial jury decide his fate, Pohlson said.

The defense attorney is considering challenging the Orange County Grand Jury indictment on similar grounds, arguing that the panel made up of Orange County citizens may also be biased against his client. Raabe returns to court Friday to set a trial date.

Citron has pleaded guilty to the charges that carry a 14-year prison sentence and has agreed to testify against Raabe, his once-trusted aide and handpicked successor. Raabe has pleaded not guilty and intends to fight the charges at trial, his attorney said.