Stanton Will Call for Audit of D.A.’s Office

A week after a court cleared him of bankruptcy-related misconduct charges, Board of Supervisors Chairman Roger R. Stanton said Friday that he will ask his colleagues next week to launch a financial audit of the district attorney’s office.

Stanton, whose term expires in three weeks, expressed hope that the independent review would determine the amount of money prosecutors have spent on the two-year bankruptcy investigation, which resulted in charges against Stanton and five other county officials.

The prosecutions have so far produced mixed results, including guilty pleas from former treasurer Robert L. Citron and a mistrial in the case of former Budget Director Ronald S. Rubino.

Dist. Atty. Michael R. Capizzi “has been evaluating the conduct of elected officials for 18 months,” said Stanton, whose proposal will be considered by the board Tuesday. “Certainly, he should have no objection to opening up his own books.”

Capizzi, however, said the audit is unnecessary because the Orange County Grand Jury is already conducting an $85,000 review of his office that supervisors approved earlier this year.

“Roger’s interest in financial matters is a day late and $2 billion short,” said Capizzi, referring to the money lost in the December 1994 bankruptcy, which stemmed from a $1.64-billion loss in a county-run investment pool.

“This is a vindictively motivated audit by a bitter member of the Board of Supervisors who has two more meetings to go before his term is up,” he added. “There are more pressing issues to consider.”

Stanton first suggested the audit in September, when he publicly criticized Capizzi’s handling of the bankruptcy cases. He and Supervisor William G. Steiner faced civil misconduct charges for failing to prevent the bankruptcy, but a state appeals court last week dismissed both their cases.

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Stanton has also discussed other actions against Capizzi’s office, such as an investigation by the state attorney general’s office into possible “prosecutorial misconduct.” But in a memo to colleagues released Friday, Stanton said other inquiries “should not be invoked” until the financial review is completed.

Stanton said the district attorney’s office audit should be followed by financial reviews of all other county departments, which he said would help supervisors make better financial decisions and give the public a clearer understanding of how funds are spent.

“There is, of course, no rational argument for concealing such information,” Stanton wrote in his memo. “One would expect that a district attorney, elected by the people, would have an ardent desire to put to rest the serious questions raised regarding” the bankruptcy prosecutions and other matters.

Stanton also said he is “alarmed” that Capizzi cannot account for how much money his office has spent on the bankruptcy investigation.

Capizzi responded that his office does not record the cost of each case because it does not bill the expenses to clients, as private law firms do.

“If we want to rent more office space for [financial] records and hire 12 to 15 people to maintain those records, I guess we could do that,” Capizzi added. But “it would be financially irresponsible.”

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In May, the Board of Supervisors approved a routine grand jury audit of the district attorney’s office, which is being conducted by Price Waterhouse. The same firm performed an audit of the office’s family support division two years ago.

While Steiner and Stanton’s cases have been dismissed, Auditor-Controller Steve E. Lewis still faces misconduct charges, while former assistant treasurer Matthew R. Raabe faces criminal charges. Their cases are pending.

In September, a jury deadlocked 9-3 in favor of acquitting Rubino of felony counts. Rubino eventually pleaded guilty to one misdemeanor count under a deal that will allow him to change the plea to “not guilty” in one year.

Citron, whose risky investment practices caused the bankruptcy, pleaded guilty to six felony counts and was sentenced to up to one year in county jail.