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Strabala assets queried again

LISBON — Stephen Strabala was in court again on Friday to undergo a further review of his assets to determine how much he can apply toward a $21.9 million judgment against him for his role in the county investment scandal.

Meanwhile, the county prosecutor’s office filed a motion to intervene in Strabala’s pending dissolution so it can protect the county’s financial interests.

Strabala, 52, was in county Common Pleas Court in June for a hearing to determine how much he would pay toward the judgment after a federal judge in March ordered him to resume making restitution to the county. He had been ordered to make restitution in the amount of $4.7 million as part of a plea deal with federal authorities in 1995 for his part in the investment scandal. The amount continues to increase with interest and is now $21.9 million.

Strabala spent seven years in prison for illegally investing $10 million in county funds, $6 million of which were lost in the stock market, while he spent another $334,000 on himself. The scandal resulted in the forced resignation of his late father, former county treasurer Ardel Strabala, who served one year in prison for investing county funds with his son, who was a stockbroker at the time.

County authorities learned last year Strabala had quit making restitution payments and a motion was filed in federal court to have the restitution order reinstated, which was granted. The hearing held last month was to begin reviewing Strabala’s assets to determine how much he could pay the county.

A follow-up hearing was scheduled for July 26 but was moved up to Friday. During Friday’s hearing, Assistant County Prosecutor Krista Peddicord asked Judge Scott Washam to declare Strabala in contempt of court because he failed to provide her with all of the records she requested at the prior hearing.

According to Peddicord, Strabala failed to provide her with all of his credit card billing statements, tax returns for the past three years, pay stubs since May, a Social Security Administration report, and bank account information, including his account numbers.

Strabala said he had given Peddicord his most recent pay stubs and his pay had not changed since he gave her a pay stub at the February hearing in federal court. He has also provided her copies of his W-2 statements for the past five years and told her he only has a checking account.

As for his tax returns, Strabala said he filed a request for copies with the IRS but has yet to receive them. He was unsure exactly what Peddicord wanted in regard to the remaining requested records.

Rather than find Strabala in contempt, Washam scheduled another hearing for Aug. 9 for him to provide all of the requested information. Washam warned Strabala if does not make a good-faith effort to comply he will likely be found in contempt.

At the June hearing, Strabala told the court he and his wife were splitting up, and he filed for a dissolution nine days later. Peddicord filed a motion last week asking for the court’s permission to intervene and the county be made a party to the dissolution. She said the county has a financial interest in what transpires because of the restitution order.

“As a result of its judgment and lien, (the county) has an interest in certain property of Mr. Strabala that may be divided in this matter and/or distributed as spousal or other support,” she wrote.

In her motion for intervention, Peddicord claimed Strabala has “intentionally concealed the existence of significant debt owed” the county, noting the financial affidavit he filed in his dissolution did not list the $21.9 million county judgment against him.

A hearing on the intervention motion is scheduled for 1 p.m. Monday.

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