Officials Near Cost Caps on Legal Defense

Supervisor William G. Steiner and Auditor-Controller Steve E. Lewis, two of the three officials facing misconduct charges for allegedly failing to head off the county’s bankruptcy, are nearing the spending limits set by the Board of Supervisors for their legal defense.

Steiner said Monday that he is within $10,000 of reaching his $250,000 cap but does not expect to request additional funds until at least August, when a state appeals court decides whether his case should go to trial.

Lewis’ attorney, Mike Green, said that the auditor may have already exceeded his $300,000 spending limit and will probably ask supervisors for another cash infusion in the near future. Lewis hit his original $250,000 cap in May, but the board rejected his request for another $250,000, allocating just $50,000 instead.

The Board of Supervisors was scheduled to consider a request this morning to increase from $300,000 to $500,000 the defense spending cap for former County Budget Director Ronald S. Rubino, who is fighting felony charges related to the county bankruptcy.

Rubino’s attorneys estimate that his total legal bills will reach $1.3 million--a figures that jolted some supervisors who have already expressed concerns about the increasing price Orange County is paying to defend current and former officials.

Rubino’s trial on two felony counts of aiding and abetting the misappropriation of funds is expected to begin Aug. 12 and last one or two weeks. If convicted, he faces up to nine years in prison.

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The bankruptcy stemmed from $1.64 billion in securities trading losses that were blamed on the risky investment practices of former Treasurer-Tax Collector Robert L. Citron, who managed a county-run investment pool.

Citron pleaded guilty last year to six felony counts of securities fraud and misappropriation of public funds, but he has not yet been sentenced. His former assistant, Matthew Raabe, still faces trial on the same six counts. The board stopped paying Citron’s and Raabe’s legal fees in February 1995.

Even though Rubino’s attorneys said that $1 million is needed, county officials recommended that the board allocate an additional $200,000 for now and prepare its own estimate of his defense costs.

According to a county report, the $200,000 would be used in part to hire expert witnesses and jury consultants.

Steiner said his lawyers predicted that his own defense costs will not exceed $500,000 if the case goes to a trial. But he expressed optimism that the appeals court will toss out the case before a trial begins.

“My hope is that the court dismisses the charges on Aug. 28,” said Steiner, who has personally paid $28,000 of his legal expenses. “Then there would not be the need for that much more funding.”

Because his case is essentially on hold until the hearing, Steiner said he does not expect to need additional funds from the board through the summer.

Supervisor Roger R. Stanton, who also faces misconduct charges, has spent about $170,000 so far and will not need additional funds until after the August hearing, his attorney said.

All four officials have steadfastly maintained their innocence but said they cannot afford to defend themselves without help from the county.

Attorneys handling the cases agreed to receive less than their usual hourly fee and to follow a variety of other measures designed to keep costs down. County officials said Rubino has saved more than $160,000 through reduced attorney fees and by using volunteer paralegal and investigative services.

Also contributing to this report was Times staff writer Matt Lait.

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Legal Limits

The Board of Supervisors has agreed to pick up the legal fees of four officials who face bankruptcy- related charges. Here is a look at their status:

Auditor- Controller Steve E. Lewis

Cap: $250,000,increased to $300,000 in May.

Status: Reached limit; expected to request more funds soon.

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Supervisor William G. Steiner

Cap: $250,000

Status: Spent about $240,000; not expected to request more funds until at least August.

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Supervisor Roger R. Stanton

Cap: $250,000

Status: Spetn at least $170,000; not expected to request more funds for now.

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Former County Budget Director Ronald S. Rubino

Cap: $300,000

Status: Seeking an additional $200,000; total fees expected to reach $1.3 million.

Source: Times reports; Researched by SHELBY GRAD / For The Times