Ex-Grand Jury Foreman to Be Queried Under Oath

The foreman of the grand jury that charged three elected officials with misconduct in connection with the county’s bankruptcy will be asked to explain under oath why some grand jurors believed Dist. Atty. Michael R. Capizzi had a conflict of interest, a judge ruled Wednesday.

Los Angeles Superior Court Judge John W. Ouderkirk, who was appointed to handle the officials’ cases after Orange County Presiding Judge Theodore E. Millard disqualified all county judges, said he would listen to the testimony to determine how relevant it is to arguments by the officials’ attorneys that Capizzi should be disqualified as prosecutor.

The officials contend Capizzi is as much to blame as they are for failing to prevent the bankruptcy, because he ignored some of the same warnings of irregularities in the treasurer’s office that the three officials had.

Attorneys for the three officials also contend that the lawyers and investigators in the district attorney’s office lost money when the county filed for bankruptcy, and therefore had a motive to seek charges against the elected officials.

Ouderkirk told attorneys for Supervisors Roger R. Stanton and William G. Steiner and Auditor-Controller Steve E. Lewis that he would allow them to question the grand jury foreman, Mario Lazo Jr., some other grand jurors and Richard Stavin, the former federal prosecutor whom the grand jurors tried to hire as their independent council when the conflict-of-interest issue first surfaced last summer.

“I think there are some issues that are going to have to come out in testimony,” Ouderkirk said. Lazo and the others are scheduled to appear next Tuesday.

The grand jury charged the three elected officials with willful misconduct in civil accusations handed down last December. It also indicted former county Budget Director Ronald S. Rubino on felony charges of aiding and abetting the misappropriation of funds by former Treasurer-Tax Collector Robert L. Citron.

Defense attorneys have been pushing to have Capizzi called as a witness in hearings on their bid to have him disqualified, but Ouderkirk did not indicate whether he would force the district attorney to testify.

Brent Romney, an assistant district attorney, said after Wednesday’s hearing that his office would oppose any effort to call Capizzi and that it was unlikely Ouderkirk would require his appearance.

Defense attorneys have claimed that Capizzi may have prevented the grand jury from investigating his own role in the bankruptcy by threatening to impanel a second grand jury.

But Romney disputed that, saying, “We don’t think the grand jury even wanted to look into the district attorney’s involvement with the bankruptcy.”

In two other cases, judges have denied motions to recuse Capizzi. Both Rubino and former assistant treasurer Matthew Raabe, who faces trial on six felony counts of securities fraud and misappropriation, tried to remove Capizzi.

But after the hearing, attorney Allan H. Stokke, who represents Steiner, said he expects to have Capizzi removed. “Our evidence is 400% stronger,” he said.