Local News in Brief : Conviction in Credit Scam

A Los Angeles jury Friday convicted a North Hollywood man of 18 counts accusing him of masterminding of phony credit scheme that bilked up to $550,000 from companies such as Atari and Eastman Kodak.

The federal panel deliberated about five hours before returning the verdicts against Haim Pinhas, 44. An associate, Jack Price, 34, of Minneapolis, was also convicted of 18 counts by the jury, but a third defendant, Byron Foster, 28, of Los Angeles, was acquitted.

Assistant U.S. Atty. David A. Katz said Pinhas and Price used bogus credit to order up to $500,000 in goods ranging from telephone systems and video games to watches, bicycles and vacuum cleaners. Then Pinhas sold the goods cheaply and closed up shop before the merchants could collect for the items, Katz said.

Some of the victimized companies eventually went out of business because of the scheme, prosecutors said.

Sentencing for Pinhas and Price, who each face a maximum sentence of 90 years in prison and $4.5 million in fines, was set for Aug. 23 before U.S. District Judge Edward Rafeedie.