Con Man Said to Be Dying : AIDS Victim Stays Out of Jail--for $2.5 Million

A federal judge agreed Tuesday to let a millionaire con man who is believed to be dying of AIDS stay out of prison in return for forfeiting $2.5 million in cash and property and performing 2,000 hours of community service.

Sheldon Lawrence Block, 36, pleaded guilty Dec. 10 to 76 counts of mail fraud and racketeering and was sentenced to 15 years in prison. But U.S. District Judge A. Andrew Hauk accepted terms of a plea bargain that allows Block to remain free until he dies, or his AIDS condition is cured or is no longer life threatening.

Block’s lawyers and doctors have said that he has between one and two years to live.

Block agreed to pay fines, restitution and court costs of $335,350 and to surrender three homes in Malibu and Westlake Village worth $2.2 million. He also agreed to perform 2,000 hours of community service.

Block appeared pale and drawn. One of his lawyers, Mark Beck, said Block’s condition “was real bad.” He said Block had trouble standing and was “in and out of hospitals” for treatment of an infection.

Assistant U.S. Atty. David Katz said at the time Block pleaded guilty that the plea bargain was the first instance of a criminal defendant with AIDS being allowed to avoid jail by paying restitution.

Block was owner of Park Distributing Inc., a West Los Angeles-based company that sold copier supplies by telephone. Prosecutors said that at its peak the company ran the nation’s largest fraud operation involving telephone sales.

Katz said the company grossed $35 million between 1981-85 by misleading businesses nationwide into ordering unwanted and overpriced products.

Block was indicted last February. Twenty-three of his employees also have pleaded guilty.