Wednesday, September 9, 2009

Board awaits facilities report

Aug. 27, 2009

Board awaits facilities report

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

A report offering guidance to the New Castle Area School Board will be released soon.

Donna Donati hopes it doesn’t sit on a shelf.

“I would like them to take it seriously,” she said.

While board president, Donati established a community-based committee a year ago to determine the district’s facility needs. The group centered on the kindergarten and primary centers.

A part of the equation involved the buildings. Declining district enrollment and project funding were two other pieces. While the needs were obvious, financial and political pressures are expected to steer the board’s decision.

“This isn’t a great time to propose anything,” said David A. Esposito of Eckles Architecture and Engineering, which is overseeing the study. “There’s so much uncertainty with the governor’s budget.”

Superintendent George Gabriel said he anticipates the committee’s final meeting to take place next month.

Eckles presented eight options to the group in June. The architectural firm then narrowed its focus to two proposals. Once would update the Harry W. Lockley kindergarten center in addition to the John F. Kennedy, Thaddeus Stevens and West Side primary centers. The other plan involves the construction of a primary center and renovation of the kindergarten center.

Committee member Kimberly Koller-Jones said consolidation of district facilities makes sense.

“It’s all about making choices,” she said. “(The board) would almost have to go on a campaign and explain why (to the residents).”

The committee asked Esposito to investigate additional funding sources. He will present the information at the group’s next gathering.

The state budget crisis also has influenced the process.

“Part of the report involves incorporating some of the district’s programs,” Donati said. “If those programs are not funded, it impacts how consolidation is done.”

Once the report is finalized, the board has two years to act. After that, the Pennsylvania Department of Education requires an updated study.

“It’s not like it’s milk and the report spoils,” Esposito said. “(However,) the longer it drags out there’s inflation and costs dragging out.”

Whatever the committee’s recommendations, Donati doesn’t expect board support. She questioned whether her peers are concerned with declining enrollment and the associated issues of salaries and transportation costs.

“They are mainly interested in just the moment,” she said. “They don’t think about the ramifications of policies.”

Gabriel said he expects the board to review current finances and fiscal projections before committing to the project.

“We have been and continue to look at staffing,” he added.

Felasco receives 3 years probation

Sept. 9, 2009

Felasco receives 3 years probation


By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

PITTSBURGH — Judge Gustave Diamond refused to excuse Gary F. Felasco’s criminal conduct during yesterday’s sentencing hearing.

However, the U.S. senior district justice could not ignore what the former Lawrence County treasurer has told federal authorities since August 2006.

Facing four to 10 months in prison, Felasco received three years probation for failing to file a 2005 federal tax return. The first six months will be spent under home detention.

“(Felasco) has brought to light some mind-boggling (allegations of) corruption in Lawrence County,” Assistant U.S. Attorney Brendan T. Conway said.

“We have been able to corroborate everything Mr. Felasco has said. We believe he will continue to cooperate.”

Felasco’s attorney, James J. Ross, and Conway each said Felasco has acted “exemplary.” Investigations have been initiated as a result.

“The cooperation has been truthful and complete,” Ross said.

One such effort involves a mortgage fraud probe centered on Affordable Housing of Lawrence County and First Commonwealth Bank.

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

Neshannock Township resident Anthony J. Staph Jr. entered a “not guilty” plea on July 21 in response to one count of bank fraud. Pretrial motions in his case will take place Oct. 30.

Nicholas DeRosa of 221 N. Cascade St. is scheduled to be arraigned at 9:30 a.m. Oct. 1 on one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy.

To keep details of his assistance confidential, Diamond approved the government’s motion to have its sentencing report sealed.

“The public revelation of the extent of (Felasco’s) cooperation would unfairly reveal information related in individuals that have not been charged with criminal offense and may detrimentally effect ongoing investigations,” the government wrote.

Diamond agreed that Felasco’s cooperation has been substantial. He said he expects future indictments as a result.

Despite the nature of Felasco’s crime, the judge said his cooperation should be rewarded.
“I’m just sorry for the harm I caused so many people,” Felasco said to the judge.

As a condition of the probation, Diamond ordered the Warren, Pa., resident to make arrangements with the Internal Revenue Service for the payment of back taxes, penalties and interest.

Felasco’s presentence report, issued in late July, noted the IRS did not collect $10,000 for the 2005 tax year. Felasco earned $44,568 as county treasurer in 2005. He collected an additional $35,000, which the government said he received as the result of alleged illegal activity relating to Affordable Housing.

Diamond did not levy a fine against Felasco, who does not work as the result of a undisclosed disability.

Another federal agency, the U.S. Department of Housing and Urban Development, has maintained an interest in the cases involving Felasco and Affordable Housing. HUD funds were used in the creation of the nonprofit housing agency.

“At this time, HUD will await the outcome of the ongoing legal proceedings and then determine the appropriate steps to protect the taxpayer’s interest,” said Maria Bynum, HUD’s regional public affairs director in Philadelphia.

DeRosa arraignment moved again

September 2, 2009

Nicholas DeRosa’s arraignment in a mortgage fraud case has been moved a second time.

A federal grand jury indicted the retired New Castle 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 an investigation involving Affordable Housing of Lawrence County and First Commonwealth Bank.

DeRosa was scheduled to appear in court this morning in downtown Pittsburgh. His new arraignment is set for 9:30 a.m. Oct. 1 before U.S. Magistrate Judge Robert C. Mitchell.

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.

A replacement for current U.S. Attorney Mary Beth Buchanan has not been named.

In paperwork filed Aug. 27, Grail said DeRosa wishes to retain him as counsel.

Despite the government’s objection to Grail’s motion, U.S. Magistrate Amy Reynolds Hay approved the request.