
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, April 29, 1995                   TAG: 9505030017
SECTION: BUSINESS                    PAGE: C-6   EDITION: METRO 
SOURCE: Associated Press
DATELINE: SANTA ANA, CALIF.                                LENGTH: Short

PLEA BARGAIN MAY INVOLVE BROKERAGE

The ex-Orange County treasurer's plea bargain to fraud could help criminally implicate top brokerage Merrill Lynch and other advisers in the county's bankruptcy crisis, officials said Friday.

Merrill insisted it's acted honestly in the events that led to the biggest-ever municipal bankruptcy last December, and there was no indication criminal charges might be added to a civil lawsuit by the county seeking to blame the brokerage for its woes.

But the guilty plea by Robert L. Citron late Thursday still is seen as a turning point in a scandal that's humbled one of the nation's most affluent and politically conservative regions.

Citron agreed to cooperate fully with investigations into the bankruptcy, which focused nationwide attention on how public officials manage funds in the financial markets. He confessed to six state charges of defrauding investors, which carry penalties of 14 years in prison and a $10 million fine.

As part of the plea agreement, Citron will stay out of jail while inquiries into the disaster inch along. His lawyer said Citron is overcome with remorse that his risky investments have caused such harm.

by CNB