Indicted Official’s New Bid

Former Santa Ana Councilman Tony Espinoza asked a federal judge Monday to throw out his grand jury testimony and remove the government’s chief prosecutor in the public corruption case against him and three onetime political allies.

Espinoza, who had agreed before testifying last year to plead guilty, backed out of the bargain with prosecutors shortly before an indictment was handed up in August 1998. He then pleaded not guilty.

Espinoza is accused of helping Councilman Ted R. Moreno in a scheme to extort campaign contributions so Moreno could fund campaigns for a slate of candidates who would help him take control of the council.

The pair, along with former council candidates Hector Olivares and Roman Palacios, were indicted on 24 counts of conspiracy, extortion and money laundering.

Moreno and Olivares have denied any wrongdoing. Palacios pleaded guilty to one felony count and agreed to testify against the others. Prosecutors later added three counts to the indictment, accusing the remaining three of lying to federal authorities.

Espinoza was Moreno’s staunchest ally, and his testimony to the grand jury could be key in the government’s case against Moreno. Neither side, however, would comment on the importance of the testimony.

“It would be pure speculation at this point,” said Espinoza’s attorney, James Asperger.

Moreno and Espinoza were often lonely allies on the council, where they were in the minority on many issues. They endorsed Olivares and Palacios in the 1996 elections to shift the balance of power. The new candidates lost, but Moreno, first elected in 1992, was reelected. Espinoza, elected in 1994, served out his term and left the council last year.

Asperger said Monday that his client signed a plea agreement with the government and agreed last year to cooperate with investigators and testify before the grand jury “to cut his losses.”

But after testifying before the grand jury, Espinoza changed his mind.

“I looked at the facts. He could not go forward with the plea agreement because he’s innocent,” Asperger said.

Asperger is also trying to remove Assistant U.S. Atty. John Hueston from the case, arguing that Hueston was present when Espinoza made statements to investigators and that the prosecutor could become a witness in the trial.

Hueston declined to comment.

Prosecutors and defense attorneys didn’t get far with their arguments Monday. A fire drill interrupted proceedings, and U.S. District Judge Gary Taylor postponed the rest of the hearing until Nov. 2.