County to Pay Raabe’s Legal Fees in Civil Suit
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Orange County will pay $45,000 to attorney Gary Pohlson to represent convicted former Assistant Treasurer Matthew Raabe as it pursues civil litigation against investment giant Merrill Lynch for losses from the county’s $1.64-billion bankruptcy in 1994.
Raabe’s representation contract, approved Tuesday by supervisors, is three times what the board previously agreed to pay. The amount ballooned, Supervisor Todd Spitzer said, after the estimated 12 days of depositions involving Raabe rose to at least 30 days. Pohlson is being paid $275 an hour.
After the bankruptcy, Raabe was convicted of felonies for illegally diverting interest income from cities, schools and special districts into the county’s treasury.
Board Chairman William G. Steiner said the litigation is critical because the county hopes to recover more than $1 billion from Merrill Lynch, which last year paid $30 million to settle a criminal investigation of its actions by Dist. Atty. Mike Capizzi.
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