The Best Resolution for All in Bankruptcy Sentencing

This week’s plea bargain agreement in which former Orange County Budget Director Ronald S. Rubino pleaded no contest to a felony, then had that reduced by the judge to a misdemeanor, averted a costly second trial. Orange County’s district attorney gets to say his office won another conviction on criminal charges stemming from the county’s bankruptcy. The accused official is likely to have no criminal record a year from now, despite his plea.

But despite the apparently tortured logic of the result, it was the best resolution available and all sides were wise to agree to it. Rubino was tried on criminal charges of helping launch a scheme to divert money from cities, schools and special districts to the county’s investment fund. A jury deadlocked last month, with nine of the 12 members favoring acquittal.

Since the county declared bankruptcy nearly two years ago, there has been a quest to learn what happened. Former Treasurer-Tax Collector Robert L. Citron has pleaded guilty; his former top assistant awaits trial.

There have been enough investigations and hearings, by a county grand jury and by Sacramento legislators, to paint a picture of Citron’s reckless investments, under the eyes of county supervisors, that went so bad they led to a $1.64-billion loss.

The public is right to demand that those responsible be punished, and some of that has happened. Some county employees were fired or demoted; some elected officials have left office, their reputations forever tarnished even though they were not legally guilty of any crime. But determining exactly what culpability everyone had and meting out punishment is a task that is difficult at best.

Rubino has steadfastly maintained his innocence, but said he could not afford another trial. In addition to about $100,000 that Rubino said he spent himself, the county spent $500,000 on his defense. Another trial would have cost the county hundreds of thousands of dollars more for Rubino’s defense. And the county of course picks up the district attorney’s bills as well.

It makes sense to avoid that additional expense. Dist. Atty. Michael R. Capizzi can claim victory with the plea, but it is a small win. Some have argued that Rubino never should have been prosecuted, but that is wrong. Not all trials end in convictions, but that is no reason not to press charges if prosecutors think they can prove someone guilty.

We now know a lot about how this bankruptcy happened, but other trials, civil and criminal, may produce further details. This has been a painful but necessary exercise for the county, and it will be worth it if we can ensure that nothing like it ever happens again.