Footing bill for Houchen

Former mayor asks local taxpayers to cover her legal fees. Hearing set for Feb. 6.Hey, Huntington Beach -- Pam Houchen is asking for your help. Would the taxpayers mind footing the former mayor’s legal bills in her fraud and corruption case?

Condo owner Renee Tarnow is suing Houchen for her involvement in a condo-conversion scheme. In September, Houchen pleaded guilty to eight counts of fraud and corruption for her connections to the scandal and faces five years in prison at her Feb. 6 sentencing hearing.

Now Houchen is asking Huntington Beach taxpayers to help foot the bill in her legal battle with Tarnow. The brief request was just a formality, explained Huntington Beach Mayor Dave Sullivan, and Huntington Beach has been named as a defendant in the lawsuit, as well. Regardless, the council rejected the request during a Tuesday night closed session meeting.

In December 2004, Houchen and seven other defendants were indicted for their involvement in a plan to illegally convert apartments into condominiums without the proper permits and then sell them to unsuspecting buyers. Realtor Phil Benson was said to be the mastermind behind the scheme, which involved forged notary signatures and payoffs to title agents to insure the deal. In total, five people pleaded guilty to participating in the scandal, and two others, investor Jeff Crandall and former border patrol agent Michael McDonnell, were later found guilty by a federal jury for their involvement in the scheme. Benson is still awaiting his trial, prosecutors said.

In total, about 15 apartment buildings were illegally converted into about 45 condominiums, generating $11 million. City officials have spent months trying to clear up the titles of the illegally zoned properties, causing a headache for homeowners who have had to work with their insurance companies to bring the units up to code. A group of title companies representing the homeowners recently reached a settlement with the city that would clear up the titles in exchange for approximately $10,000 per unit; that money would then be earmarked for affordable housing projects in the city.

Condo owner Steve Worley said he is finally making progress on his condo conversion after city officials intervened on the part of a reluctant neighbor. He said he didn’t have any plans to file a lawsuit over the incident, but was angry that Houchen would request that the city pick up her bill.

“Why should the city pay her legal fees? She’s the one who did it,” he said. “If the city winds up paying, then the taxpayers will be the one who pays for all of this.”

Attorney Ron Davis said it’s common for defendants to make requests of their former employees.

“You’ll never get it if you don’t ask,” he said. “Of course the likelihood is that she won’t get it. But most attorneys will probably ask anyway.”

If the lawsuit alleges that Houchen committed the crimes as an employee of Huntington Beach -- she was mayor during most of the scandal -- the city could be forced to defend some of her actions in court, he said.

“If she is sued in capacity as a council member, then the city might have to defend her,” he said. “The issue isn’t really what she did, but what the plaintive alleges she did.”

QUESTION

Should the city pay for any of Pam Houchen’s legal bills? Call our Readers Hotline at (714) 966-4691 or send e-mail to hbindependent@ latimes.com. Please spell your name and include your hometown and phone number for verification purposes.