REPORT: Felasco 'associates' provided former treasurer with $35,000

July 29, 2009

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

Two associates of Gary F. Felasco channeled $35,000 to assist the former Lawrence County treasurer with his legal bills.

The disclosure appeared in a federal Probation Office’s pre-sentence investigation and report issued yesterday.

In February, Felasco pleaded guilty to a misdemeanor charge of failing to file a 2005 federal tax return. The U.S. Attorney’s Office said the charge was separate but related to the case involving Affordable Housing of Lawrence County and First Commonwealth Bank.

The Warren, Pa., resident will be sentenced at 11:30 a.m. Aug. 10 in U.S. District Court, Pittsburgh.

Felasco’s troubles began in September 2005 while he served as county treasurer. He was indicted on charges of theft by failure to make required disposition of funds, misappropriation of entrusted property, embezzlement and conflict of interest.

A Venango County jury found him guilty on all charges in May 2006.

“To help pay his attorney’s fees related to the state criminal case, (Felasco) received $35,000 in cash from two associates, which was funneled through his mother, Helen Felasco, and her boyfriend, Randy Janiel,” the report said.

The associates were not identified.

The report said the money was deposited in Janiel’s business account at ESB Bank. Records show three checks amounting to $40,000 were written from Janiel’s account to the law firm of Bowers, Ross & Fawcett to pay for Felasco’s defense.

Attorney James J. Ross represented Felasco in his state case. He is overseeing Felasco’s federal complaint.

The government said the money was neither a loan nor a gift but obtained as the result of illegal activity. Felasco’s 2005 federal tax return should have included $44,568 in earnings as treasurer and the $35,000. The government failed to collect approximately $10,000 as a result.

The report offered a variety of sentencing options, which include prison time, probation, parole, home detention and fines.

“It does not appear that (Felasco) has the current ability to pay a fine nor is likely that he will become able to pay any fine,” the report concluded.

Sentenced in August of 2006 to one to seven years in state prison, Felasco served the minimum term but remains on parole until 2013.