Local News in Brief : Chief Witness in Scam Sentenced to Probation

A Panorama City man, the chief witness against his father in an $8-million fraud trial in federal court, was sentenced Monday to five years on probation for his part in the scheme.

U.S. District Court Judge Terry J. Hatter also ordered Steve Scordel, 25, to perform 1,000 hours of community service.

Under an agreement with the prosecution, Scordel was allowed to plead guilty to one count of conspiracy after testifying against his father, George Scordel, 54, of Pasadena and Woodland Hills.

The prosecution portrayed the elder Scordel as the leader of a ring that set up “front” businesses in Hollywood and in the San Fernando Valley between 1981 and 1986. The businesses were used to bilk dozens of wholesale suppliers of more than $8 million through manipulation of bogus credit and planned bankruptcies, authorities said.

The Justice Department brought 60 charges against 22 people. Thirteen, including the younger Scordel, pleaded guilty. Two were convicted and one was acquitted. Two are awaiting trial and four are still fugitives.

Scordel’s father was convicted March 4 of 45 counts of conspiracy, mail and wire fraud, interstate transportation of stolen goods, obstruction of justice and perjury. He is scheduled to be sentenced April 18.

The younger Scordel testified that his father brought him into the scheme when he was 19. He testified that his father told him that what they were doing was illegal but that even if they were caught, he would probably serve less than a year in jail.

In sentencing the younger Scordel, the judge said he took into account Scordel’s cooperation with authorities, the 19 months he served in prison after his conviction on state bad-check charges in the fraud scheme and the emotional pain Scordel suffered in testifying against his father.