Board Urged to Stick With Own Policy on Legal Fees

Saying the county has already spent more than $1 million defending officials on bankruptcy-related matters, Chief Executive Officer Jan Mittermeier recommended Friday that the Board of Supervisors reaffirm its year-old policy of not paying the legal bills for employees accused of criminal wrongdoing.

Mittermeier’s proposal comes on the eve of a key vote by the board Tuesday over whether taxpayers should pick up the costs of defending former Budget Director Ronald S. Rubino against criminal charges stemming from his role in the county bankruptcy.

Neither Mittermeier nor the county counsel’s office made a recommendation on the Rubino matter, and officials said the existing policy allows supervisors to pay criminal defense fees on a case-by-case basis.

Several supervisors have expressed support for paying Rubino’s legal bills.

A report released Friday found that taxpayers have picked up $1,045,642 in legal fees for various county officials--nearly all related to a Securities and Exchange Commission investigation of the bankruptcy.

The county spent $660,333 on defense costs for supervisors, $44,008 for former County Administrative Officer Ernie Schneider and $165,289 on legal bills for Auditor-Controller Steve E. Lewis, according to the report.

Under a resolution approved Jan. 12, 1995, the board agreed to pay the legal costs of employees involved in the SEC probe as well as class-action litigation stemming from the bankruptcy.

But the resolution also states that “no representation shall be provided for the defense of any criminal action that may be filed against any current or former county employee.”

After adopting the policy, the board stopped paying the legal bills of former Treasurer-Tax Collector Robert L. Citron and his onetime deputy, Matthew Raabe. The action was taken after an investigation indicated that Citron and Raabe had illegally transferred millions of dollars in the county-run investment pool from the accounts of outside investors into county accounts.

Citron, whose risky investment strategies led to the county’s Dec. 6, 1994, bankruptcy filing, later pleaded guilty to six felony counts of securities fraud and misappropriating public funds. Raabe still faces trial on the same six felony counts.

Rubino is charged with aiding and abetting Citron’s misappro

priation of funds.

A 20-year county veteran who quit about two years ago, Rubino has repeatedly denied any wrongdoing. In a personal appeal to the board in January, he said he had already depleted his savings defending himself on preliminary court matters.

The county counsel’s office said the board could cover Rubino’s defense costs if it finds that his actions were performed as part of his official duties, and that no malice was involved. The board must also find that paying the legal bills is in the best interests of the county.

If the board feels it does not have enough information to make such findings, it could reconsider the matter if Rubino is acquitted.

The legal fees policy does not specifically address whether the county should cover the defense costs of officials facing civil charges.

In December, the board voted to pay for the legal expenses of Supervisors William G. Steiner and Roger R. Stanton, as well as those of Auditor-Controller Lewis. The three officials face civil charges of “willful misconduct” for failing to properly oversee the actions of Citron.

The three supervisors who voted on the matter said they wanted to hold down costs as much as possible, perhaps by placing caps on the amount the county would spend.