10 L.A. Sheriff’s Officers Indicted in Theft of $1 Million in Drug Funds : Members of Elite Squad Allegedly Took Money After Raids

A federal grand jury today indicted 10 veteran members of an elite Los Angeles County Sheriff’s Department narcotics squad on conspiracy charges in the theft of more than $1 million seized in drug raids since 1988.

The 10 officers conspired to embezzle drug proceeds, said the 27-count indictment obtained by The Times.

Nine officers were indicted on theft charges, eight were charged with tax evasion, two with extortion from alleged drug dealers, the indictment said.

The wife of one officer was indicted on tax evasion charges.

The officers allegedly seized money during drug raids, obtained statements from alleged traffickers disowning the money, then “defendants would steal a substantial portion of the currency for later distribution among themselves,” the indictment said.

The officers then turned in the remaining portion of the seized money to the department and filed false police reports understating the amount of money seized, the indictment said.

Money was hidden in safes, safe deposit boxes and bank accounts--and some was eventually used to buy boats, cars, jewelry, a swimming pool, stocks and property in California and Arizona, the indictment said. One deputy allegedly used $5,600 to purchase an interest in a “horsing syndicate.”

Indicted on a variety of charges were:

Sgt. Robert Sobel and deputies Terrell H. Amers, James R. Bauder, Nancy A. Brown, Eufrasio G. Cortez, Ronald E. Daub, John C. Dickenson, Daniel M. Garner, and Michael J. Kaliterna. Deputy Macario Duran was indicted for conspiring to steal money. Duran’s wife, Maria Christina Duran, also was indicted.

The indictment alleged that Garner told another member of the crew in late 1987 that he could “make him rich.” In January of 1988, two deputies, Amers and Cortez, stole about $527,000 during a narcotics search in Woodland Hills, the indictment alleged. Garner later provided $20,000 in cash to other individuals, including narcotics crew members, the indictment said.

Sheriff Sherman Block had suspended Sobel and his eight deputies last Sept. 1, one day after federal agents had conducted a videotaped sting operation targeting sheriff’s narcotics officers. Block suspended nine more officers a month later.

“I haven’t done anything wrong,” said Bauder, a 9-year sheriff’s veteran. “I realize that by the nature of the investigation there’s an aura of wrongdoing around me, but I’m convinced that ultimately I will be exonerated.”

The grand jury did not charge eight officers who had been placed on administrative leave with pay. But it remained unclear whether the department would lift the suspensions of the unindicted officers or whether they could still face other charges.

Attorneys for some of the unindicted deputies said they will press for immediate reinstatement and will consider legal action against the county if the department balks.

In first announcing the suspensions last fall, Block said the investigation began in October, 1988, when an internal audit showed what appeared to be a misappropriation of funds handled by a narcotics unit. The FBI was brought in on the case last May, and the Internal Revenue Service joined in July.

Homes and businesses in California and Arizona owned or operated by the suspended narcotics officers were searched by federal agents in an investigation that Block dubbed “Operation Big Spender.” Vacation homes, boats and cars belonging to the officers were seized, and business ledgers, appointment books and other property were confiscated by investigators.

During the investigation, financial checks were conducted not only on suspended officers but also on other sheriff’s deputies who had worked with the investigators or who were involved in narcotics cases.

At least eight narcotics cases have been dismissed by judges or withdrawn by prosecutors because the Sheriff’s Department has refused to provide investigative records about suspended deputies or the deputies themselves would not testify.