Wednesday, August 12, 2009

DeRosa fraud hearing postponed

August 3, 2009

By Patrick E. Litowitz
plitowitz@ncnewsonline.com

The possibility of a presidential appointment delayed a New Castle man’s arraignment in federal court.

Nicholas DeRosa’s scheduled appearance yesterday in Pittsburgh has been moved to 9:30 a.m. Aug. 31 before U.S. Magistrate Amy Reynolds Hay.

A potential conflict of interest arose between DeRosa and his attorney, Efrem M. Grail of Reed Smith LLP in Pittsburgh. Grail is being considered for the appointment of U.S. Attorney for the Western District of Pennsylvania.

“This request is not made lightly,” Grail wrote in his motion to Hay. “It results from unusual circumstances presented by counsel’s unique and sensitive situation.”

Grail sought the continuance Wednesday. Hay approved the postponement yesterday.

“Under the circumstances, it would be a disservice to Mr. DeRosa for counsel in such a position to undertake his representation before this Court.”

A federal grand jury indicted the retired school administrator on one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy. The charges, announced July 14, are the result of a mortgage fraud investigation involving Affordable Housing of Lawrence County and First Commonwealth Bank.

The Pittsburgh Post-Gazette reported July 13 that a selection committee interviewed candidates for the three U.S. Attorney positions in Pennsylvania. The finalists’ names will be forwarded to U.S. Sens. Bob Casey and Arlen Specter, who will submit them to the Obama administration.

The Senate ultimately will confirm the nominations. A decision is expected by mid-August. If Grail is not approved, he would continue to represent DeRosa.

The successful candidate for the Western District will replace Mary Beth Buchanan. Buchanan, who has served since September 2001, was appointed by then-President George W. Bush.

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