County to Settle with Prosecutor Fired For Investigating D.A.'s Crony

The Orange County Board of Supervisors, in a split vote, directed staff Tuesday to seek settlement of lawsuits filed by a former prosecutor who has waged a years-long legal battle to win reinstatement with back pay.

Lyle Wilson's case against the county stems from his 2002 firing over his investigation of wealthy Newport Beach businessman Patrick Di Carlo, a friend and supporter of Orange County District Attorney Tony Rackauckas.

The supervisors discussed Wilson's three lawsuits, including one in federal court, then voted 3-2 in closed session to direct staff to seek a settlement. Supervisors Janet Nguyen and Patricia Bates cast the dissenting votes.

In January, Wilson won a legal round in his legal battle when a Fourth District Court of Appeal panel overturned a lower court's denial of his claim for back pay.

The tussle actually began in 2000 when Di Carlo asked Rackauckas to investigate what he considered to be a threatening phone message from someone he thought was mob-connected in New York.

Wilson was assigned to the case, but eventually shifted his focus to Di Carlo and allegations of federal and state securities law violations -- claims Di Carlo adamantly denied.

Rackauckas fired Wilson for keeping evidence, continuing the probe against his boss' orders and leaking information to the news media. When Rackauckas demanded the evidence Wilson had collected in his probe, Wilson turned over copies and kept the originals, according to the appellate court ruling in January.

In 2006, a Los Angeles Superior Court judge ordered the county to give Wilson his job back, but did not take sides on how much back pay was owed to him.

County officials paid Wilson $97,304 in back pay and benefits in October 2010, and then they fired him again. Wilson sought a court order forcing the county to pay him $1.1 million more and provide a retirement credit of 7.9 years.

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- City News Service