Ex-U.S. Attorney Charged in Probe of Fraud Ring

A former federal prosecutor in Los Angeles has been charged with obstruction of justice and perjury in connection with an investigation of a fraud ring that allegedly provided false credit information about itself to obtain between $8 million and $15 million in merchandise, which was resold without reimbursing creditors.

Former Assistant U.S. Atty. Chester L. Brown, a federal prosecutor in the 1970s, was one of 20 people named in two separate indictments charging the fraud and an effort to cover it up during grand jury proceedings.

According to federal prosecutors Curtis B. Rappe and Charles C. Lee, the head of the alleged fraud ring was George Scordel, 50, of Pasadena. He is accused of setting up numerous purchasing companies from 1981 to 1986 to purchase goods ranging from gumballs and paper clips to electronic goods and diamonds from various suppliers

Brown is charged with advising witnesses to deceive the grand jury in their testimony and later lying himself when asked about his role in the alleged cover-up attempt.