O.C. IN BANKRUPTCY : Raabe’s Lawyers Restate Fears of an Unfair Trial

What newspapers do grand jurors regularly read? How many employees in the district attorney’s office own homes in the county? How many have children in local public schools? And what kind of investments do prosecutors have in the county’s retirement system?

These are some of the questions that former Orange County Assistant Treasurer Matthew Raabe wants answered as his lawyers seek to dismiss felony indictments accusing him of engaging in deceptive practices that triggered the county’s bankruptcy.

Raabe’s defense attorneys repeated their contention Friday that Orange County prosecutors should be removed from the case and the grand jury indictment should be dismissed because every county employee and resident--including members of the grand jury--have a financial stake in the unprecedented bankruptcy.

They cite lowered property values, cuts in the classroom and reduced county retirement benefits as some of the possible fallout around the county.

“It’s a unique case when everyone in the county, theoretically, is a victim,” defense attorney Gary M. Pohlson said, following a brief meeting Friday with Superior Court Judge Everett W. Dickey.

The Orange County Grand Jury indicted Raabe in May on six felony charges that he and former Treasurer-Tax Collector Robert L. Citron deceived unsuspecting public agencies into sinking money into the ill-fated county investment pool that lost $1.7 billion.

In motions filed earlier this month, Pohlson and co-counsel Richard L. Schwartzberg are requesting a number of documents that are usually not requested in criminal cases, including personal financial records from grand jurors, Orange County Dist. Atty. Michael R. Capizzi and employees in his office, regardless of whether they are involved in Raabe’s prosecution.

The defense attorneys say the unusual case calls for unusual tactics.

The lawyers also are preparing to argue that the grand jury was tainted by publicity over the bankruptcy and that Raabe’s trial should be moved to another county because potential Orange County jurors also would be affected by the bankruptcy, making it impossible for Raabe to receive a fair trial.

Deputy Dist. Atty. Jan J. Nolan and Wallace J. Wade, members of the prosecution team, could not be reached for comment Friday. But prosecutors in the past have insisted they can fairly handle the case and contend that the grand jury indictments are valid.

Raabe, 39, who is free on $200,000 bail, appeared in court for Friday’s status conference on the case. The next hearing, on defense motions seeking the information, is set for Sept. 15.