Felasco requests probation next week

Aug. 13. 2009

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

Gary F. Felasco has asked a federal judge to place him on probation as punishment in a tax evasion case.

The former Lawrence County treasurer pleaded guilty in February to one count of failing to file a 2005 federal tax return. U.S. District Judge Gustave Diamond will sentence Felasco at 11:30 a.m. Aug. 20.

Felasco’s attorney, James J. Ross, said his client’s cooperation and “extraordinary acceptance of responsibility” warranted a reduced sentence. He made the request July 29.

Charged with a misdemeanor, Felasco faces four to 10 months in prison and possible fines. The U.S. Attorney’s Office said the charge was separate but related to a mortgage fraud case involving Affordable Housing of Lawrence County and First Commonwealth Bank.

According to Ross, Felasco met with federal investigators prior to entering state prison in August 2006.

The initial meeting took place after his May 2006 conviction on state charges of theft by failure to make required disposition of funds, misappropriation of entrusted property, embezzlement and conflict of interest. Felasco served one year in prison but remains on parole until 2013.

“From the very outset, (Felasco) has cooperated with the United States in an ongoing investigation since that time,” Ross wrote. “He has met with Federal Agents on a number of occasions of very lengthy debriefings and has provided information that led to the indictment of ... other individuals.”

Three county residents have been charged in the Affordable Housing scandal.
Anthony J. Staph Jr. of 132 Firestone Drive, Neshannock, pleaded not guilty July 21 to one count of bank fraud. Pretrial motions in his case will take place Oct. 30.

Robert Ratkovich of 512 Norwood Ave. pleaded guilty July 28 to one count of bank and mail fraud conspiracy and one count of money laundering conspiracy. He is scheduled to be sentenced Oct. 28.

A federal grand jury indicted Nicholas DeRosa, 64, of 221 N. Cascade St. on one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy. His arraignment is scheduled for 9:30 a.m. Aug. 31.

Ross noted that Felasco is unable to pay fines that may be assessed. The attorney asked Diamond to consider community service as an alternative.

“(Felasco) wants to make it perfectly clear that he is not attempting to shun his responsibility here,” Ross wrote.

The government is not seeking restitution of the $10,000 owed for the 2005 tax year.