Monday, Mar. 19, 1984

Red-Handed?

De Lorean gets his day in court

Claims the defense: "This is a fictitious crime. Without the Government there would be no crime. This is one of the most insidious and misguided law-enforcement operations in history."

Claims the prosecution: "This is a classic case of a guilty defendant caught redhanded, desperately trying to transfer blame for his apprehension and disgrace to the Government. It is difficult to imagine a more willing participant in a narcotics transaction than John Z. De Lorean."

The legal arguments, sharply drawn in pretrial statements, are reminiscent of those heard in the Abscam cases. The lawyers for fallen Auto Magnate John Zachary De Lorean claim that he was a victim of entrapment when the FBI secretly filmed him fingering packets of cocaine in a Los Angeles hotel room nearly 17 months ago. The Government contends that its undercover sting was aimed at known drug smugglers and that De Lorean, to the astonishment of federal agents, walked right into the net. He is charged with conspiring to distribute $24 million worth of cocaine in a futile effort to raise funds and keep his ailing sports car company from going bankrupt.*

Last week, in an unusual procedure, Federal Judge Robert Takasugi asked some 177 potential jurors to fill out a 42-page questionnaire. The 110 wide-ranging questions include: "Have you or has any member of your family or any acquaintance ever owned a De Lorean gull-winged sports car?" "Have you or any member of your family used cocaine?" "Do you object to the Government being involved in 'sting' undercover operations, where the Government takes the role of supplying drugs to the person who wants to buy them...?"

The pretrial publicity has been vast. De Lorean, lanky and handsome at 59, and his fashion model wife, Cristina, 34, make lively copy and photos. De Lorean's rise to the top corporate ranks at General Motors, his attempt to prove that he was an automotive genius by creating and producing his own $26,000 futuristic car, and his disastrous wrong turn into association with agents posing as drug smugglers, all are the stuff of high drama. Declares Defense Attorney Donald Re: "I have very serious concerns about whether an impartial jury, to which John is entitled, can be found."

One of many trial delays was caused by the insistence of CBS-TV on broadcasting an FBI videotape of De Lorean's arrest at the Sheraton Plaza La Reina hotel near the Los Angeles airport on Oct. 19, 1982. The tape had been made available by the ubiquitous and unsavory Larry Flynt, publisher of Hustler magazine. In the film, De Lorean talks with agents posing as drug dealers, fondles the coke packets and says, "It's better than gold." A door opens and a man enters. "Hi John," the stranger says folksily. "I'm Jerry West from the FBI. You're under arrest for narcotics-smuggling violations."

The defense will contend that De Lorean thought he was meeting with legitimate businessmen to persuade them to invest in his car company. But De Lorean's lawyers must overcome the evidence on five hours of videotapes and 58 audio recordings that will be the heart of the Government's case. The defense will also try to destroy the credibility of a main prosecution witness, James Timothy Hoffman, a former drug dealer and onetime California neighbor of De Lorean's, who helped get De Lorean involved with the undercover agents. The defense will claim that Hoffman enticed De Lorean into the trap and even used threats in warning him not to pull out. The prosecution will argue that De Lorean had freely sought Hoffman's help in acquiring much needed cash from drug sources.

Four television vans are already parked outside the federal courthouse in downtown Los Angeles. Forty-four seats in the courtroom have been set aside for U.S. and foreign news organizations. An adjoining room will hold another 60 reporters. De Lorean, who had difficulty raising his $5 million bail and is paying his high legal fees partly with loans from friends, will probably testify on his own behalf. Cristina may also be called by the defense. The drama's climactic courtroom chapter could last more than two months.

* De Lorean's company filed for bankruptcy in October 1982. A grand jury is investigating allegations by creditors that some $17 million in company assets is missing.