2 Ex-Deputies Found Guilty of Skimming Drug Money

Two former Los Angeles County sheriff’s deputies were found guilty Monday of skimming drug money from narcotics suspects, making them the 12th and 13th deputies who have been convicted in the long-running inquiry.

A jury in U.S. District Court in Los Angeles found Michael J. Kaliterna, 46, and Nancy A. Brown, 53, guilty of conspiracy and theft. Kaliterna also was convicted of tax evasion for failing to report income that he derived from his money-skimming activities.

Both deputies were assigned to an elite Sheriff’s Department group, Major Narcotics Violator Crew Two, better known as Majors Two.

Kaliterna faces a possible sentence of 28 years in prison and a fine of $1.6 million, said Assistant U.S. Atty. Jeffrey C. Eglash. Brown could be sentenced to as long as 15 years in prison and fined up to $500,000.

According to Eglash, the deputies charged in the money-skimming cases were using their positions in law enforcement to steal large sums of money from drug suspects.

Acting on tips or other information, the deputies would corral drug- and money-laundering suspects, Eglash said. They would seize money in the course of searching those suspects’ cars or residences, and then would have the suspects sign disclaimer forms saying the money did not belong to them.

In some cases, the seizures turned up huge sums of cash, sometimes several hundred thousand dollars. The deputies would pocket some or all of the money and divide it up later, Eglash added.

All told, prosecutors estimate that the operation--which authorities say began in 1985 or so and continued until late 1989--netted at least $1.4 million in illegal gains.

“They were pretty careful about not showing their money too well,” Eglash said. The deputies did not spend it ostentatiously, and did not make cash transactions of larger than $10,000, which trigger a federal reporting requirement.

Nevertheless, some deputies bought boats, cars and vacation homes with their illegally earned money, said Assistant U.S. Atty. Dorothy Shubin.

An undercover sting operation by the FBI and Internal Revenue Service led to the indictment of deputies in 1989. Eglash said 13 have been convicted. One other deputy is on trial, two are awaiting trial, and the investigation is ongoing.

The Sheriff’s Department has cooperated in the probe, prosecutors said.

Prosecutors said Kaliterna joined the narcotics unit in 1988 and began stealing money in May of that year. Although the jury did not reach verdicts in three theft counts against Kaliterna, it convicted him on two counts, as well as one count of conspiracy and one of tax evasion.

Brown, who had only recently been assigned to the unit when she was arrested, was convicted of one theft.

“She picked a bad time to start stealing,” Eglash said.

Kaliterna’s lawyer, Leonard Levine, said he and his client were disappointed by the verdicts.

“We thought that we had presented sufficient doubt as to the credibility of the government’s witnesses,” Levine said. “We’re considering an appeal.”

Sentencing for the two deputies has been set for Dec. 28.