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

DATE: WEDNESDAY, June 29, 1994                   TAG: 9406290136
SECTION: VIRGINIA                    PAGE: C4   EDITION: METRO 
SOURCE: By RON BROWN STAFF WRITER
DATELINE:                                 LENGTH: Medium

APPEALS COURT UPHOLDS OVERTURNED CONVICTION

A federal appeals court Monday upheld a 1992 decision by U.S. District Judge Jackson Kiser to overturn the criminal fraud conviction of former Vinton Town Attorney Frank Selbe.

The government alleged that Selbe intentionally tried to conceal from a federal probation and parole officer a $350,000 note payable he had received from the 1991 sale of his house.

Selbe contended in his 1992 trial that the proceeds from the note belonged to his wife, Victoria, in keeping with a prenuptial agreement.

In its ruling Monday, the U.S. 4th Circuit Court of Appeals agreed with Kiser that Selbe had made no false statements and that his statements, in any event, were not material to the probation officer's background investigation.

Monday's ruling likely will put an end to the government's prosecution of Selbe.

"In all likelihood, the government will let it lie," said Assistant U.S. Attorney Karen Peters, who prosecuted Selbe on the charges and appealed Kiser's decision.

In August 1992, a U.S. District Court jury found Selbe guilty of lying on a financial statement he provided the probation officer after a 1991 conviction for tax evasion.

Specifically, Selbe was asked, "Within the last three years, have you encumbered or disposed of any asset or property with a cost or fair market value of more than $1,000? If so, give the following information: date, amount, property transferred or encumbered. To whom?"

Selbe's answer was, "Sale of personal residence to D.L. and L.H. Hodges on 1/8/91 with proceeds distributed of $93,700."

The judge of the appeals court found that "the jury incorrectly interpreted the answer as being false, and this was the sole basis of his conviction."

"... We agree with the district court that Selbe should not have been convicted," the court further ruled. "The prenuptial agreement, in our view, is quite clear that his wife was to receive `no less than one-half the proceeds' of the sale."

The court said that gave Victoria Selbe a legitimate right to the entire proceeds from the $350,000 note.

by CNB