New Extortion Charges Filed Against Moreno

Santa Ana Councilman Ted R. Moreno promised a local businessman he would intervene with city officials to keep a store open in exchange for $1,000 monthly payments from the owner, federal prosecutors charge in new court papers.

The allegations are the latest in a major 2-year-old public corruption case scheduled to go to trial next month. Moreno, 32, and two other defendants are charged with conspiring to extort campaign contributions in the city’s 1996 elections.

According to court papers filed by the U.S. attorney’s office, Moreno agreed in 1994 to “use his official position to ensure that the city did not close” a sports memorabilia business in an area zoned exclusively for industrial businesses.

Prosecutors also charged that Moreno agreed to “further assist [the businessman] by intervening with the police to relax” parking enforcement rules near the establishment.

The documents, filed two weeks ago, do not specify how much money Moreno received from the businessman, or what action, if any, the councilman took on his behalf.

Prosecutors also allege in the papers that Moreno said he would “ensure passage of a zoning variance” for the business in exchange for separate $1,000 campaign contributions to the councilman’s political allies.

The documents also allege that Moreno laundered money intended to repay loans his campaign accrued in 1996 to buy stocks for himself.

Assistant U.S. Atty. John Hueston said he could not comment because of the pending trial. Neither Moreno nor his attorney, Edward R. Munoz, returned calls requesting comment.

Moreno, who is free on bail, has denied any wrongdoing. Moreno’s supporters have accused the FBI and the U.S. attorney’s office of singling out Latinos to reduce their political clout in the city--a charge prosecutors strongly deny.

The latest allegations come toward the end of the discovery period, in which prosecutors must tell the defense what evidence it plans to introduce in court. U.S. District Judge Gary Taylor will rule whether the new evidence will be admissible during the trial.

In 1998, a grand jury indicted Moreno, Tony Espinoza, 31, Hector Olivares, 32, and Roman Palacios, 38, on charges that they conspired to extort campaign contributions, including $31,000 from a gas station owner seeking a beer and wine license from the city.

Espinoza and Moreno were sitting council members. They sought to win a majority on the council by funding Olivares and Palacios, prosecutors allege.

Palacios has pleaded guilty and is expected to testify against the others.

Jury selection is scheduled to begin Feb. 3.