Businessman’s Bank Fraud Conviction Is Overturned

An Orange County businessman’s bank fraud conviction was overturned Wednesday by a federal appeals court because of the trial judge’s refusal to let the defense remove a prospective juror.

The appellate court said Ronald Fauria, vice president of Orange Coast Title Co., is entitled to a new trial. Co-defendant Robert Annigoni’s conviction was overturned on the same grounds last September by the 9th U.S. Circuit Court of Appeals in San Francisco.

Both men were charged with fraudulently obtaining a $2.85-million loan from United California Savings Bank to buy a building in Anaheim.

Prosecutors said Annigoni, executive vice president of Par Western Interests Inc., used falsified documents to deceive the bank into believing the loan was secured by a trust deed. Fauria issued a misleading title insurance policy and received $120,000 of the loan proceeds, prosecutors said.

After a joint trial, Fauria was placed on probation by U.S. District Judge Dickran Tevrizian, fined $2,500 and ordered to perform 600 hours of community service.

In overturning Annigoni’s conviction last year, the court cited Tevrizian’s refusal to let the defense remove a prospective juror who was of Asian descent.

Tevrizian said the removal was racially motivated. But the court said the judge should have accepted the defense explanation that the juror had invested in a real estate partnership that had been involved in lawsuits and might not be a favorable juror in a real estate case.

In an 8-3 ruling, the court said a defendant whose request to remove a juror was improperly denied is entitled to a new trial without having to prove the jury was biased. On Wednesday, a three-judge panel said the ruling also requires a retrial for Fauria.

On other issues, the court refused to order dismissal of the charge, saying there was evidence that would justify a conviction if believed by the jury.

“We’re happy that we can go back there and get a fair trial,” said defense lawyer Richard Rome.

Assistant U.S. Atty. Stephen McConnell declined comment.