Steiner, Wary of Jury Probe, Hires Attorney

Concerned that the Orange County Grand Jury is gearing up to file bankruptcy-related charges against current and former officials of the county government, Supervisor William G. Steiner has hired one of the area’s top criminal defense attorneys to represent him.

Steiner confirmed late Thursday that he retained defense attorney Allan H. Stokke with his own funds last week because of widespread speculation that civil and possibly criminal charges against the supervisors and others are being prepared.

All members of the Board of Supervisors are already being represented by a county-paid lawyer who will defend them against charges that are expected to be filed by the U.S. Securities and Exchange Commission.

But Steiner engaged Stokke to deal with charges that may be filed by the grand jury.

“I want to make absolutely certain that I’m prepared for any action that may occur as a result of the bankruptcy,” Steiner said. “I’m not even sure I need a lawyer at this point. No one has told me I’ll be accused of anything. I would like to believe the grand jury will not succumb to a search for scapegoats.”

Sources close to the district attorney and grand jury, however, say some type of charges will be filed before the end of the year against county officials, including board members. SEC officials also have indicated that they intend to take action against county officials sometime in the near future.

“I’ve retained [Stokke] because of all the rumors and news stories about imminent action by the grand jury,” Steiner said. “If an accusation is filed, I want to be able to defend my past record.”

So far, Steiner is the only board member who has hired a private defense attorney because of the bankruptcy crisis. Supervisor Roger R. Stanton has been consulting with personal friend and attorney Wylie A. Aitken about the grand jury and SEC investigations, but has not formally retained his services.

The grand jury and the SEC are investigating the role of the Board of Supervisors in allowing former Treasurer-Tax Collector Robert L. Citron to pursue the high-risk investment strategy that led to county investment pool losses of about $1.7 billion, which forced the county into bankruptcy late last year. Citron has pleaded guilty to six felony charges of fraud and misappropriation of public funds.

Steiner and other board members have said repeatedly that they are not to blame for the crisis. They say they relied on false or misleading information they got from the treasurer, as well as advice from bond counsel and assurances of investment rating agencies.

“The grand jury exists to protect innocent people from unjust accusations,” Steiner said. “I believe they will see there was no misconduct or corruption on my part.”

Stokke said he has reviewed Steiner’s involvement in the Dec. 6 bankruptcy and believes that his client has done nothing wrong.

“At worst, it would appear that the supervisors did not predict a problem in a very complex and financial arena that even the experts didn’t predict. That is simply not willful misconduct or corruption,” Stokke said.

Stokke said he has spoken with the district attorney’s office this week, but declined to discuss the conversations. Sources said that if charges are filed against Steiner, Stokke may challenge the district attorney’s involvement in the case and raise conflict-of-interest issues.

“I’m sure everyone’s relationship to this case is something that we will be examining,” Stokke said.

The district attorney has declined to comment on the grand jury investigation.

Stokke added that Steiner, who has testified before both the SEC and grand jury panel, will continue to cooperate with their investigations.

“He is an an extremely well-respected and dedicated public servant,” Stokke said.

In recent weeks, Steiner has confided to friends that he is distressed by the possibility of grand jury charges and enforcement actions by the SEC, and even considered stepping down from office. But he dismissed the idea of resigning after consulting with a group of supporters who have encouraged him to fight any charges and protect his reputation.

“I don’t believe he should walk away and [bow to] the pressure to leave,” said former Angel baseball star Doug DeCinces, a loyal Steiner supporter. “I believe that he is not directly responsible. . . . Bill Steiner was only in office [20] months prior to the bankruptcy. He stepped into something that was in operation for years and years.”

Steiner, a former director of the Orangewood Children’s Home for abused and neglected children, was appointed to the board in March, 1993. He was elected to the board in June, 1994, with nearly 70% of the vote. His term expires in December, 1998.

Stokke has been involved in a number of high-profile cases in the county, including that of a Tustin businessman who was charged with and later acquitted of attempted murder.

He also defended one of the accused in the murder of high school honors student Stuart Tay; Laguna Hills lawyer James D. Gunderson, who remains under investigation for receiving millions of dollars in gifts from his elderly clients; four aides to former supervisor Don R. Roth, who were asked to testify about their boss, and former Santa Ana Councilman John Acosta, who was accused of improperly influencing another city official--a charge that was ultimately dismissed.