FEDS TO RETRY BUSINESS THREAT CASE; DEFENSE CLAIMS GOVERNMENT IS RACIALLY BIASED.

Byline: Donna Huffaker Staff Writer

Federal prosecutors announced Monday they will retry two Glendale men who were accused of threatening owners of a sewing company, but the prosecutors dropped all but one charge.

Following the announcement, U.S. District Judge Richard A. Paez ordered prosecutors to meet with their supervisors and defense attorneys to try to resolve the case without having to retry the defendants.

Henzel Harutian and Albert Ambartsumian must answer to the charge of interference with commerce by threats, said Assistant U.S. Attorney Dan Saunders of the Organized Crime Strike Force.

``After extensive discussions with law enforcement and the supervisors in this office, we feel it is in the interest of justice to seek a retrial,'' he said, adding that it is not unprecedented to retry defendants who were nearly acquitted by a jury.

Defense attorney Mark Geragos, who represents Harutian, said Monday he believes his client - and other Armenians - have been unfairly targeted by the U.S. Attorney's Office.

On Oct. 15, a federal jury deadlocked 9-3, in favor of acquittal, on two counts of extortion against Harutian, Ambartsumian and Edouard Terterian. Jurors further hung 10-2 on charges against Harutian and Ambartsumian of conspiracy to commit extortion. The jury acquitted Terterian on the conspiracy to commit extortion charges.

Harutian, his wife, Nelli, Ambartsumian and Terterian were accused of threatening Armen Eloyan and his wife, Anahit, owners of Master-Sew Contractors in Glendale, in an effort to extort money from them, prosecutors have said.

When the Eloyans refused to pay, prosecutors said Nelli Harutian called Anahit Eloyan and warned if they didn't pay she would ``cut their ears off'' - an Armenian expression for killing someone, federal court documents say.

Geragos described as ``absolutely pure nonsense'' the notion that his client is involved with organized crime. He has said the expression to cut off someone's ear is a term of endearment in Armenia.

Before the jury began deliberating on Oct. 12, Paez acquitted Nelli Harutian on an extortion charge.

On Monday, Saunders dropped the remaining extortion charges against Terterian, and he dropped two counts against Henzel Harutian and Ambartsumian.

As for the case and the organized strike force in general, Geragos said he believes the authorities are racially biased.

``If they go forward and choose to retry this, we will file motions asking the judge to throw out the case because we believe the prosecutors are unfairly targeting Armenians,'' Geragos said.

A status conference will be held Dec. 6 in Paez's courtroom in the Roybal Federal Building.