Board meets without Felasco

PAT LITOWITZ
plitowitz@ncnewsonline.com

Jeffrey Scrim's casual comment came across like a death announcement.

"Mr. Felasco is no longer with us."

The U.S. Department of Housing and Urban Development's Nov. 29 ruling prevented Gary F. Felasco from attending yesterday's Lawrence County Housing Authority board meeting and its work session earlier in the week.

Citing Felasco's state charges involving his role as county treasurer, the federal housing agency issued a temporary suspension against the authority board member. Because the authority receives its entire funding from the federal government, HUD said it was required to protect the public's interest and maintain integrity.

"I didn't know if (Felasco) was going to show up or not," authority executive director Robert J. Evanick said yesterday.

Scrim and fellow board members Robert Heath and Donald "Ducky" Conti expressed concern over HUD's ruling.

"I believe they have to have just cause," said Scrim, whose term expires Dec. 31. "They shouldn't be able to come in and do something to our employees."

Conti has a particular interest in HUD's action.

"Whatever happened to innocent until proven guilty?" Conti asked. "If they can do this to him, they can do this to us."

An officer of the Vita Nuovo Club on East Washington Street, Conti faces criminal charges after a state police investigation into illegal gambling devices and illegal liquor sales. Conti, who rejected a plea offer, awaits trial.

"Mine's a slap on the hand," Conti said of his charges. "The worst-case scenario, I get probation."

Conti said he has not been contacted by HUD officials regarding his charges.

Stating that this is a local matter, Conti said Felasco's standing on the board should be determined by the county housing authority.

"This thing has been going on for a year and a half," Conti said. "All of the sudden Washington comes down on us.

"Somebody had to tip them off."

He also noted that the county's judicial system ruled Felasco may serve as treasurer pending the outcome of his trial.

"Nobody can remove him unless he was found guilty of the crime."

The board ordered authority solicitor Lou Perrotta to continue researching HUD's ruling. He was also told not to appeal or seek an injunction on Felasco's behalf.

In its letter, HUD stated that as of Nov. 29 Felasco "may not influence or control the use of HUD funds." Based on that language, Perrotta may not be permitted to represent Felasco as the authority solicitor if Felasco appeals.

"I don't know the answer to that," Perrotta said. "I have not talked to him at all."

Authority board members are not paid for their services. However, they are reimbursed for expenses related to authority business, such as mileage and conferences.

Conti said he spoke to Felasco since learning of the suspension, but the treasurer did not reveal his legal strategy. Neither Felasco nor his attorney Ed Leymarie were available for comment.

"This has never happened at the authority," Evanick said of HUD's action. "This is a whole, new ballgame."


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