Wednesday, December 15, 2010

Ruling spares Ratkovich jail time

Dec. 15, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

PITTSBURGH — Bernadette Ratkovich arose from a nearby seat and moved a couple of steps toward her husband.

Minutes before Robert Ratkovich’s sentencing was to start in downtown federal court, she placed an arm across her husband’s back and kissed him on the cheek. The moment offered a brief diversion yesterday afternoon from the stress of a mortgage fraud investigation.

Saying he weighed the nature of the crime against the nature of the person, U.S. District Judge Gustave Diamond rejected federal guidelines when he sentenced Ratkovich on one count of bank and mail fraud conspiracy and one count of conspiracy to launder money.

A commitment to family and federal investigators kept the New Castle resident from a prison sentence of 33 to 41 months.

Instead, the former city councilman received five years probation for each count, which will be served at the same time. He also was placed under house arrest for eight months and ordered to repay $338,800.

Ratkovich pleaded guilty to the charges on July 28, 2009.

The U.S. Attorney’s Office said that he and retired city school administrator Nicholas DeRosa conspired to defraud First Commonwealth Bank. Affordable Housing of Lawrence County, a nonprofit housing agency, obtained a $250,000 mortgage in December 2005 for the purchase of seven properties in which the values had been inflated.

Ratkovich was a consultant for the group, which was created by and funded with $200,000 from the Lawrence County Housing Authority in 2003. He was paid approximately $60,000. DeRosa owned or co-owned four of the seven structures.

“I think this man has learned his lesson and accepted responsibility,” attorney John T. Haller Jr. told the judge.

Haller asked Diamond to consider several factors, such as Ratkovich’s dedication to family, his remorse, assisting government investigators and how he turned around his life.

Ratkovich apologized to his family and the residents of New Castle prior to sentencing.
“I have let people down,” he said. “I helped the government because I did something wrong and that is not who I am.”

Assistant U.S. Attorney Brendan T. Conway said the government was impressed with the information Ratkovich presented and his willingness to aid investigators.

“It was a key moment in the case when he pleaded guilty and helped the government,” he said.

DeRosa had become the government’s main target.

He admitted to single felony counts of bank fraud, mail fraud and conspiracy to commit money laundering on Oct. 28. DeRosa is scheduled to be sentenced March 1.

Conway also backed Haller’s depiction of his client.

“He is definitely a family man,” he said. “He went out and got jobs and continued to work while awaiting sentencing.”

While acknowledging the seriousness of the offenses, Diamond and Conway each discussed the merits of sending Ratkovich to prison.

Based on his contributions, taxpayers should not have to pay for his incarceration, Conway said. Diamond agreed with that view.

The $338,800 in restitution will be split between First Commonwealth Bank ($218,800) and the housing authority ($120,000). He must pay 10 percent of his gross monthly income toward that amount.

During home detention, Ratkovich will be allowed to leave for work, church services, doctor appointments and activities involving his children.

“I believe the defendant in this case won’t commit offenses in the future,” the judge said as the 20-minute session ended.

Tuesday, December 14, 2010

Marching against violence

Dec. 10, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

A prayer for change launched a plan that resulted in a march.

Last night’s Stop the Violence prayer walk on Halco Drive was quiet and respectful as opposed to the violent, mid-morning death of Trevaughn Lamont Thompson on Nov. 30. Using the biblical tale of Jericho as their guide, religious leaders and community residents want the walls of violence to collapse throughout New Castle.

Like the Israelites in the Book of Joshua, seven marches will take place throughout the city.

“Our community and our youth have been hurting for quite some time now,” said Apryl Scrim, a member of St. Paul Baptist Church, located on North Street. “A change is not a recommendation but a must.

“There is an outcry that everybody is ready for a change. Enough is enough.”

After Thompson’s death, Scrim began her efforts with discussions on her Facebook page. That led to prayer vigils, which were held at St. Paul and St. John United Holy Church.

“One person had an idea to use a social network to call people into prayer, and it began to grow,” said Gary Mitchell, who also attends St. Paul.

Mitchell began organizing marches to coincide with the vigils. Last night’s dual event started at Bethel AME Church, 312 Green St. Participants headed past Grant Street through Halco Drive before returning to the church.

“We’ve come out of our comfort zone to take a stand against violence in all its forms, said Mitchell, who also oversees a community outreach and prison ministry called Rebuilding of Life.

“This is a place people call home. We come not to judge or ridicule, but we come to show support and offer some love.”

Approximately 100 people walked on or drove along Halco Drive, which is part of the Grant Street housing development. There was limited activity throughout the duplexes as the marchers moved ahead and past the site where Thompson was shot.

“The violence that we see today is not what it was when I first got here,” said the Rev. Jeannette Hubbard, who has served at Bethel AME Church for 16 years. “There was no violence at all.

“I’m always in a state of wonderment as to why things happen.”

Hubbard said last night’s event showed people united in faith and a common goal.

“Let the city of New Castle know we are working together to break all cycles of violence.”

Vincent Wise, associate minister at St. Paul, said spiritual healing broke his bond with drugs.

“I grew up in the streets,” he said. “I used to sell drugs and use drugs. I was a drug addict.

“It didn’t take rehab to get me off drugs. It was the power of prayer. God came in and cleaned me up.”

Like Hubbard, the Rev. Richard Rue ministers to Halco Drive residents at Union Baptist Church, located on West Grant Street.

“Being that it’s a small area, when anything happens it makes a big scene. There’s some great people there.”

The next prayer vigil is scheduled for 7 p.m. Tuesday at Prevailing Word World Outreach Ministries, 114 Oakland Ave. Mitchell is planning marches for housing developments at Westview Terrace and Sciota Street.

“If you hear a loud noise in New Castle, that’s the walls coming down,” Wise said.

Monday, November 15, 2010

Haunted house actors boo organizer

Nov. 15, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

The screams continue after a New Castle haunted house ended operations early.

Some performers claim they are owed money for working at “A Haunting in Cascade Park,” presented by Legends of Fear. The event’s operator countered that anyone who became involved did so as a volunteer.

The sides agreed, though, that the scare affair attracted few patrons. The venture was scheduled to run Oct. 21 through Oct. 31 and Nov. 4 through Nov. 6. It closed Halloween night.

“They were all told in the very beginning that it was a volunteer position,” Sharon resident Barbara Warner said. “Everyone got the same speech.

“We had hoped to give some type of bonus award at the end. However, there was no money to be made.”

New Castle resident Jim Kuhn, who headed security at the site, said the participants were promised money for their services.

“(Warner) had us listed as volunteers,” Kuhn said. “But when people called and inquired about it, she told them they would receive a bonus after it was all said and done.

“I was told $175.”

Warner posted two classified ads in the New Castle News. The first notice sought haunted house volunteers, while the second one called for actors. Neither announcement mentioned pay.

“I did it because it was money,” said Kristen Sipe, a sophomore at the Lawrence County Career and Technical Center. “I didn’t sign up to do it as a volunteer.”

Those involved were asked to sign a contract stating they had agreed to the rules governing the operation. The document did not state a pay rate. However, it discusses bonuses based on attendance and costumes.

“I certainly was not trying to be an attorney when I wrote most of that,” Warner said. “I was trying to get some specific points across.”

Warner said she hoped to issue payments from $100 to $125 to performers who appeared during the haunt house’s entire run.

“It wasn’t an actual salary,” she said. “It wasn’t a guaranteed payment.”

Warner said the event generated approximately $7,600 during the 10 days it was open. Admission was $12 for ages 12 and over and $9 for ages 5 to 11.

The haunted house’s worst attendance was Oct. 27 when $96 was collected. The best showing came Oct. 23 with a paid admission of $1,906.

“It was bad from beginning to end,” Warner said.

She said she was originally one of three investors in the endeavor. However, two partners quickly exited.

Expenses totaled approximately $16,500, Warner said. The city charged her close to $5,200 for the 10 days the park was used. Stephanie A. Dean, the city’s business administrator, said the bill was paid.

“I’m almost $10,000 in debt,” Warner said.

Kuhn said that toward the end, she started telling people it was a bust here and she couldn’t make any money. On Nov. 5, she met with approximately 30 people, which included Kuhn and Sipe, to outline the situation.

“She flat out told everyone that no one was getting paid for anything,” Sipe said. “I trusted this lady, and I figured she wouldn’t do that to minors.

“I was wrong.”

Kuhn does not expect any payments to be forthcoming.

“It’s the kids I’m worried about,” he said. “I don’t want the kids to think the workforce is going to treat them this way for the rest of their life.

“She put a sour taste in their mouth.”

Warner reiterated there is no money to paid out.

“My house is mortgaged. I have a $70,000 IRS lien against a $40,000 house. I have no income, and my car is leased.

“There is a used hot tub sitting in my garage they are more than welcome to.”

Tuesday, November 9, 2010

Gabriel questions Union's actions

Nov. 9, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

New Castle has no interest in merging or sharing services with the Union Area School District.

The city school board will vote tomorrow to emphasize that point when it amends a resolution on a state-sponsored, nonbinding feasibility study.

The move would exclude Union from any scenario involving New Castle.

Nonsense, unprofessional and disturbing were some of the terms school board members and administrators used to discuss Union’s approach in rejecting a similar study.

“They’ve had two or three meetings, and they keep on hammering New Castle,” Superintendent George Gabriel said.

“Someone on that board needs to step up and say, ‘We’re talking about a feasibility study for merging county schools. We’re not talking about the quality of education delivered at New Castle.’”

A flier circulated throughout the township called for residents “to stop this study and save our community.” The handbill suggested the school district was in jeopardy if it moved forward and could lead to a merger with New Castle.

Union’ school board declined to participate Thursday in a 6-3 vote. During the debate, New Castle’s reputation was battered.

“Somehow, we became the focal point of this whole discussion,” Gabriel said. “We don’t belong there. We were sitting by, minding our own business ... and they approached us.”

Gabriel provided the New Castle News with an e-mail dated Aug. 24. It was signed by Union Superintendent Alfonso Angelucci and Mohawk Superintendent Kathleen Kwolek.

Angelucci sent the correspondence to Gabriel and the county’s five other superintendents.

“Some of our board members are hesitant to deal with possible objections by our respective community members, but feel that the study may provide us with valuable information to help us operate at maximum efficiency,” Angelucci wrote.

“At this time, we would like to know if any of you, through your discussions with your school boards, are interested in being a part of a joint feasibility study with Union, Mohawk, and possibly New Castle.”

Gabriel said he would not allow the district to be compared to some type of plague. He touted the graduates New Castle has produced.

“That’s because they got a good, solid education in the New Castle Area School District,” he said. “Our graduates will continue to make an impact in the future.

“This success does not come from the students of a substandard school system like the Union Area School District is trying to portray us.”

Dr. Marilyn Berkely, a member of the New Castle School Board, said Union’s handling of the matter was done in poor taste.

“The people who come into my office from Union think they’re totally right,” she said. “They have one nice street up there, and those are the people that complain.

“You’re cutting your throat. They bad-mouthed Mohawk a little bit, too. They didn’t want any part of them.”

Berkely said she also praises New Castle’s facilities as being the best.

“They said, ‘Yeah, but look who’s in them.’”

That prompted a reaction from another board member, Anna Pascarella.

“It’s called diversity. It’s what a lot of people need to be familiar with. Private sectors are into diversity.

“Universities and colleges are huge into diversity, whether you like it or not.”

Gabriel said he questioned whether the districts can work together.

“The unfounded attitudes and perceptions portrayed by these citizens indicate a lack of respect and support. I believe we can never, ever — based on what I’ve heard to date — generate any type of support or respect.”

Saturday, October 30, 2010

Government’s case againt DeRosa: Piles of quarters, nicknames and bingo

Oct. 30, 2010

Patrick E. Litowitz
New Castle News

NEW CASTLE — The government’s case against Nicholas DeRosa centered on mortgage fraud.

However, prosecutors were prepared to discuss quarters, nicknames and bingo.

And defense attorney Efrem Grail did not want a jury exposed to those topics.

DeRosa’s guilty plea Thursday in the Affordable Housing scandal made Grail’s effort to suppress parts of the government’s evidence no longer necessary. The 65-year-old New Castle resident pleaded to felony counts of bank fraud, mail fraud and conspiracy to commit money laundering.

The retired city school district administrator will be sentenced March 1.

Grail targeted six areas in his motion to exclude evidence. Court paperwork highlights some of the information investigators collected as they worked to bring charges against those responsible for defrauding First Commonwealth Bank of $250,000.

The issues were New Castle building code violations and tenant complaints; nicknames; and the alleged receipt of stolen quarters, embezzled contract fees and bingo funds.

Grail argued that the evidence was improper and served “to sully Mr. DeRosa’s character in the eyes of the jury, to show he has a propensity to do wrong, to paint him as a bad person.”

The Pittsburgh-based attorney said the crime took place over short span and the evidence’s prejudicial nature outweighed any value it might provide.

“Nevertheless, the government has produced wholly unrelated … material alleging prior bad acts by Mr. DeRosa dating as far back as the (1990s) … ,” Grail wrote.

Assistant U.S. Attorney Brendan T. Conway said he did not expect additional charges to be filed. However, he would not comment when asked if the evidence would be turned over to other law enforcement agencies.

CODE VIOLATIONS

Using a $250,000 loan from First Commonwealth and a portion of the $200,000 in federal funds provided by the Lawrence County Housing Authority, Affordable Housing of Lawrence County purchased seven properties in December 2005. The appraisals that Castle Realty Appraisal Services Inc. presented to First Commonwealth depicted one condition.

Prosecutors presented another using a government expert and the city’s code enforcement department. The government argued little change in property condition from the time Castle Realty issued its appraisal until state-certified appraiser R. Robert Barone Jr. provided his assessment 10 months later.

DeRosa owned or co-owned four of the properties.

“(D)uring that time period, 10 truckloads of trash were removed from five of the seven properties, and they were cleaned up. In one property, the one located at 857-859 Frank Avenue, the basement was filled with garbage … ,” the government wrote in rebuttal to Grail’s motion.

“Many of these properties had reached the ends of their economic lives, and significant investments had to be made into the properties to make them habitable.”

DeRosa was the sole owner of the Frank Avenue property.

In another example, code enforcement Officer Larry Joseph condemned a Wallace Avenue property co-owned by DeRosa five days after Castle Realty’s inspection. Officer Anthony Cioffi found another Affordable Housing structure, located on Croton Avenue, to be in deplorable condition.

COMMENTS

Investigators also spoke to DeRosa’s former tenants. Among their comments:

•“DeRosa was a slumlord.”

•“Every time something broke, (we) had to fix it (ourselves).

•“There were rats in the place.”

•“It smelled musty and had mold in the structure.”

Saying that no one in the real world likes their landlord, Grail said the tenants’ statements would make DeRosa appear unsympathetic to a jury. He added that it was not relevant or fair to allow them to make negative statements about DeRosa.

While objecting to DeRosa being called a “slumlord,” the defense also argued against introducing testimony referring to the city resident as “Boss Hog” and the “Godfather.” The government learned of the nicknames through an interview with Gary Felasco, former county treasurer.

Grail said the terms were “highly prejudicial as it paints Mr. DeRosa as corrupt, as a mob boss, and as criminal.” He added that “Godfather” is a term that continues the stereotype of “Italian Americans’ involvement in organized and sustained criminal enterprises.”

Felasco was convicted in 2006 of theft and embezzlement while in office. A portion of the funds from the Affordable Housing mortgage scam paid for his legal bills, the government said. He pleaded guilty to failing to file a tax return in connection with the unreported proceeds.

MONEY ISSUES

The government also obtained witness statements regarding DeRosa’s alleged role regarding stolen money. As Grail detailed in his motion, DeRosa was never charged in the reported incidents.

The first area involved the theft of quarters from laundry machines based in county housing authority properties. In creating Affordable Housing, the authority turned over management of its washing facilities to the nonprofit agency.

Donald “Ducky” Conti told investigators of the alleged scheme during a July 3, 2008, meeting. Conti served on the housing authority and Affordable Housing boards.

Conti collected the quarters and placed them in bags, which were left in his car’s trunk. He usually had $1,300 to $1,500 before DeRosa contacted him, court records stated. DeRosa reportedly phoned him within a day of the collection.

“From the first time he collected the coins, they were taken to DeRosa’s house,” according to prosecutors. “Conti pulled into DeRosa’s garage, the garage door was closed, and DeRosa and Felasco took the bucket of coins into the house.”

Conti estimated Felasco and DeRosa each collected $800 to $1,000 a year from the coins.

Felasco told investigators of a second alleged scheme involving the housing authority. This one dealt with contract fees for grass cutting.

Felasco said he and DeRosa told a housing authority maintenance provider to bid on lawn cutting services. As part of the deal, Felasco alleged, the company would include kickbacks to Felasco and DeRosa as part of the bid. The business also was told to cut the grass every nine days but to bill the housing authority every seven days.

“The government has no proper purpose in offering the evidence,” Grail said. “Its introduction can only be to show that Mr. DeRosa has a propensity to attempt to benefit improperly from others’ business dealings with Lawrence County municipalities.”

NEXT NUMBER

Lastly, the government alleged that DeRosa and Felasco took money from a county bingo hall. Felasco made the statement to investigators in August 2006. He originally denied the claim two years earlier.

The incident reportedly occurred when Felasco was running for county treasurer. A bingo hall operator told him that the small bingo games were hurting his business and he wanted to get rid of the competition.

“At the time Felasco became treasurer, bingo was big business in Lawrence County,” a government investigator wrote. “(The operator) was busing people in from Ohio to play bingo.

“DeRosa and (the operator) became friends and hatched a plan that Felasco would go out and get rid of the small bingos.”

Upon becoming treasurer, Felasco used the state tax regulations and closed some of halls. In return, court records stated, DeRosa and Felasco reportedly received payments of $1,000 each.

Felasco did not provide the total amount they reportedly received.

Had DeRosa not pleaded guilty, his trial was scheduled to begin Monday.

Friday, October 29, 2010

DeRosa admits to role in mortgage fraud

Oct. 29, 2010

Patrick E. Litowitz
New Castle News

PITTSBURGH — Nicholas DeRosa’s plea agreement effectively ends the federal government’s fraud probe of a defunct Lawrence County housing agency.

DeRosa represents the fourth of five parties to admit guilt in a mortgage scam involving Affordable Housing of Lawrence County.

The 65-year-old New Castle resident appeared in federal court yesterday afternoon to change his original plea on four charges. He then pleaded guilty to single felony counts of bank fraud, mail fraud and conspiracy to commit money laundering. A second count of mail fraud will be dismissed at DeRosa’s sentencing, scheduled for March 1.

“Public corruption, mortgage fraud and financial fraud are important priorities of this office,” said U.S. Attorney David J. Hickton, representing the Western District of Pennsylvania.

“At issue here was the misuse of government funds intended to be used for the benefit of low-income citizens in need of housing. We are making serious progress in the fight for hard-working Americans who play by the rules by protecting vulnerable families and communities from financial predators.”

PLEA ACCEPTED

Senior U.S. District Judge Gustave Diamond accepted the retired city school administrator’s plea during the 50-minute session.

The former city councilman faces jail time, probation, restitution, forfeiture of assets and fines. The prosecution agreed to a prison term of no more than three to four years. However, Diamond will decide DeRosa’s punishment after a presentence investigation is concluded.

“The really unique aspect from my perspective was the intermingling of the financial crime with the sort of undertow of political corruption,” Assistant U.S. Attorney Brendan T. Conway said.

“It’s pretty amazing to me the sort of influence DeRosa was able to have despite the lack of a real, actual political position or even a position on the board of any of these entities. Yet, he was able to pull off this scam.”

DeRosa remains free on $10,000 unsecured bond.

DeRosa’s attorney, Efrem Grail, did not respond to a request for comment after the hearing.

The centerpiece of the Affordable Housing case was a $250,000 loan fraudulently obtained from First Commonwealth Bank. The government said Robert Ratkovich, who worked as Affordable Housing’s consultant, recommended seven properties, four of which were either owned or co-owned by DeRosa. Ratkovich, through DeRosa’s instructions, asked the bank to use Castle Realty Appraisal Services Inc.

The Neshannock Township firm then submitted inaccurate and inflated appraisals to First Commonwealth, which relied upon them to approve the loan. A company representative pleaded guilty Wednesday to one felony count of bank fraud. Castle Realty, which admitted to no wrongdoing, will pay $75,000 in restitution.

KICKBACKS

Prosecutors said Affordable Housing served as an instrument for DeRosa, Ratkovich, former county Treasurer Gary Felasco and a fourth unnamed co-conspirator to collect kickbacks and additional unearned income. Felasco helped create Affordable Housing in 2003 in his role of chairman of the Lawrence County Housing Authority.

The authority provided $200,000 in federal funds and laundry concessions to the nonprofit group.

Ratkovich, who collected nearly $61,000 as an Affordable Housing consultant, pleaded guilty to bank fraud, mail fraud and money laundering conspiracy. Felasco admitted guilt to one count of failing to file a 2005 federal tax return.

New Castle contractor Michael Trover faces three counts of lying to a grand jury.

Conway said the government will pursue the return of funds taken from First Commonwealth and the housing authority. He estimated the overall restitution at $350,000.

Conway added he doesn’t expect more charges to be filed.

“We feel like this is an appropriate resolution to this case — to get the people responsible.”

Thursday, October 28, 2010

Staph cleared of fraud charge

Oct. 28, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

The U.S. Attorney’s Office has ended its prosecution of a real estate appraiser connected to the Affordable Housing fraud investigation.

Prosecutors dropped a charge of bank fraud against Neshannock Township resident Anthony J. Staph Jr., whose trial was scheduled to start Monday.

Staph’s employer, Castle Realty Appraisal Services Inc., pleaded guilty yesterday morning to one felony count of bank fraud. As part of a plea arrangement, the firm agreed to pay $75,000 in restitution to First Commonwealth Bank.

Attorney Thomas J. Farrell said Castle Realty’s plea does not implicate Staph, co-workers, board members or shareholders of any wrongdoing. Farrell represents Staph and the Neshannock-based business.

“The allegation was that the appraisals were wrong, and that’s what the corporation admitted,” Farrell said.

In a press release issued yesterday, the U.S. Attorney’s Office said Castle Realty provided fraudulent appraisals to First Commonwealth as part of a $250,000 loan application.

“The appraisals were fraudulent because they misrepresented the values of the properties, the condition of the properties, and whether the properties were occupied,” the government said.

Located throughout New Castle, the seven properties were purchased by Affordable Housing of Lawrence in December 2005. Months later, the nonprofit agency declared itself insolvent with nearly a half-million dollars in debt.

During a meeting Monday, Castle Realty’s board of directors adopted a resolution agreeing to the plea. The resolution noted the action was not an admission of guilt.

“Both sides decided it was a fair resolution of the case,” Farrell said. “(Staph is) glad he can continue with his career … and taking care of his family.”

Staph, who serves as the board’s secretary and vice president, represented Castle Realty during yesterday’s 45-minute session in Pittsburgh federal court.

In addition to paying restitution, Castle Realty may be fined, ordered to pay additional compensation or placed on probation, Farrell said. Senior U.S. District Judge Gustave Diamond scheduled sentencing for 10 a.m. March 1.

“As with an individual, judges limit fines to a corporation’s ability to pay, and I don’t think the corporation has much in the way of assets, especially after restitution is paid.”

Nicholas DeRosa, a co-defendant in the case, was expected to appear in court today to change his plea. The former city councilman and retired school administrator originally pleaded not guilty to two counts of mail fraud in addition to bank fraud and conspiracy to commit money laundering.

DeRosa to change fraud plea

Oct. 27, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

Nicholas DeRosa, a key figure in the Affordable Housing mortgage scandal, will change his plea, according to paperwork filed yesterday.

Senior District Judge Gustave Diamond said a hearing will take place at 12:30 p.m. tomorrow in Pittsburgh federal court. The former New Castle city councilman and retired school administrator pleaded not guilty on Oct. 1, 2009, to two counts of mail fraud in addition to bank fraud and conspiracy to commit money laundering. The charges are felony offenses.

The government named DeRosa and real estate appraiser Anthony Staph Jr. as co-conspirators in the case. Their trial is scheduled to begin Monday. Staph is charged with one felony count of bank fraud.

The U.S. Attorney’s Office alleges DeRosa, Staph and Robert Ratkovich schemed to defraud First Commonwealth Bank using inflated appraisals of seven city properties to acquire a $250,000 loan.

Affordable Housing hired Ratkovich to serve as its consultant, earning approximately $61,000 in a two-year span. DeRosa had owned or co-owned four of the seven buildings.

DeRosa’s request to change his plea comes as defense attorneys and federal prosecutors submitted motions regarding the jury selection process, the credibility of a government expert and two witnesses, and the admissibility of evidence.

The Lawrence County Housing Authority created Affordable Housing of Lawrence County in 2003. The housing authority provided the nonprofit group with $200,000 and handed over its laundry concessions.

Affordable Housing purchased the properties in December 2005. In the three months that followed, five board members resigned and the agency declared itself insolvent with approximately $500,000 in debt.

Ratkovich, a Norwood Avenue resident, pleaded guilty in July 2009 to bank and mail fraud conspiracy in addition to money laundering conspiracy. The city councilman is scheduled to be sentenced at 10 a.m. Dec. 14.

The investigation also has produced charges against two men in cases related to Affordable Housing.

Gary Felasco, former county treasurer, pleaded guilty to one count of failing to file a 2005 federal tax return. He was sentenced in September 2009 to three years probation.

Felasco, whose last known address was in Warren County, gained $35,000 from the Affordable Housing purchases but did not report the income. A government report said the money reportedly was used for defense costs in Felasco’s May 2006 criminal trial. The state Attorney General’s Office charged him with theft and embezzlement while in office.

A New Castle contractor faces three counts of lying to a grand jury. Federal prosecutors charge that Michael Trover, an East Long Avenue resident, lied in his testimony regarding work involving Affordable Housing, the housing authority and Shenango Township’s housing rehab program.
 

Ratkovich’s sentencing postponed

Oct. 22, 20100

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

A conspirator in the Affordable Housing mortgage scandal had his sentencing date moved to December.

Acting yesterday on a motion from the U.S. Attorney’s Office, Senior District Judge Gustave Diamond rescheduled Robert Ratkovich’s court appearance from Wednesday to 10 a.m. Dec. 14 in Pittsburgh federal court.

The former New Castle city councilman pleaded guilty in July 2009 to felony counts of conspiracy involving mail and bank fraud in addition to money laundering. Prosecutors said Ratkovich helped defraud First Commonwealth Bank of $250,000 in his role as consultant to Affordable Housing of Lawrence County.

The nonprofit agency was created in 2003 by the Lawrence County Housing Authority, where he was employed as maintenance supervisor. He resigned that position two months prior to entering his plea.

Assistant U.S. Attorney Brendan T. Conway sought the delay as the government prepares to try Anthony Staph Jr. and Nicholas DeRosa.

Staph, a real estate appraiser, faces a felony count of bank fraud. He is accused of inflating the values of seven properties Affordable Housing purchased in December 2005. DeRosa and Ratkovich reportedly oversaw the sale.

A retired city school administrator and former city councilman, DeRosa is charged with one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy.

Their trial is scheduled for Nov. 1. The date may be moved in response to motions filed by Staph’s attorney on Oct. 12.

The government said in its motion that as part of Ratkovich’s plea arrangement he agreed to cooperate in the investigation against Staph and DeRosa. Moving the sentencing date will allow Ratkovich to complete his obligation, prosecutors said.

Wednesday, October 20, 2010

Attorney seeks to suppress testimony in Staph trial

Oct. 20, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

A co-defendant in an upcoming mortgage fraud trial wants to exclude the testimony of a government expert and two witnesses.

Attorney Thomas J. Farrell, representing Neshannock Township resident Anthony Staph Jr., filed the motions Oct. 12 in Pittsburgh federal court.

Staph, a real estate appraiser, was indicted on one felony count of bank fraud in the Affordable Housing of Lawrence County scandal. Prosecutors charged that in November 2005 Staph inflated the prices of seven New Castle properties to $350,000.

Federal investigators allege Staph’s appraisals were instrumental in First Commonwealth Bank approving a $250,000 loan to Affordable Housing. The Lawrence County Housing Authority created the nonprofit agency in 2003 using $200,000 in federal funds.

Co-defendant Nicholas DeRosa, of North Cascade Street, faces one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy. He is a retired city school administrator and former city councilman.

Farrell asked Senior District Judge Gustave Diamond to exclude the testimony of R. Robert Barone Jr., a state certified appraiser. Barone produced a report in September 2006 for the U.S. Department of Housing and Urban Development. In it, he listed the value of the properties at $198,500.

“This Court should preclude Mr. Barone from testifying because his opinion is based on unreliable data and information,” Farrell wrote. “In particular, in reaching his conclusions, Mr. Barone relies upon West Penn Multi-List real estate property listings ...”

He claimed the service does not verify the listings’ accuracy.

Farrell also said that Barone did not account for the time the structures were vacant.

“The properties appraised by Mr. Staph deteriorated significantly after he finished the appraisals,” Farrell wrote. “In the (10) months after the Staph appraisals were completed, the properties were vacated and vandalized and were left unattended in the cold winter months and stripped of carpeting, tiling and various fixtures ...

“The properties as appraised by Mr. Barone were simply not the same properties appraised by Mr. Staph.”

Staph’s attorney then filed a motion to bar Robert Ratkovich and Gary Felasco, former county treasurer, from testifying. Farrell also reiterated his request to separate his client’s case from DeRosa’s. The trial is scheduled to begin Nov. 1.

Ratkovich, of 512 Norwood Ave., pleaded guilty in July 2009 to bank and mail fraud conspiracy in addition to money laundering conspiracy. The former housing authority supervisor and city councilman is set to be sentenced at 10 a.m. Oct. 27 in Pittsburgh.

Diamond sentenced Felasco in September 2009 to three years probation for failing to file a 2005 federal tax return. The case was separate but related to the Affordable Housing scheme. Court records stated Felasco illegally collected $35,000 from the Affordable Housing purchases. In doing so, he underpaid the IRS $10,000.

In his motion, Farrell provided seven statements from government documents that he said amounted to hearsay. The remarks involved another person associated with city-based Castle Realty, where Staph is employed.

A federal investigator noted in a July 2008 interview with Felasco that “DeRosa told Felasco that the appraisals were nothing more than a formality, and they would get the appraisals they wanted.”

“The government may argue that these statements are admissible as co-conspirator statements,” Farrell wrote. “There is no independent evidence that (Staph) was part of a conspiracy.”

The U.S. Attorney’s Office has until Tuesday to respond.

Saturday, October 16, 2010

New Castle to join state-backed study

Oct. 14, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

New Castle will participate in the Pennsylvania Department of Education’s merger study.

The board agreed to the department’s no cost, no obligation offer in a 7-0 vote last night. Members Fred Mozzocio and Karen Humphrey were absent.

“This doesn’t mean New Castle will look to merge with another district,” Superintendent George Gabriel said at Tuesday’s work session. “I think it would be incumbent on us to at least participate.

“We are not committing anything other than some of the administration’s time to work with the department of (education).”

Earlier in the year, the Union Area School District’s superintendent approached Gabriel about a potential merger.

I had one meeting with Dr. (Alfonso) Angelucci, and I can tell you there was not a whole lot of substance,” he said. “I think the substance comes through this feasibility study.”

The board also approved two measures involving the Harry W. Lockley Early Learning Center.

Eckles Architecture & Engineering was approved as the architect overseeing the renovation, which is estimated to cost between $16.4 million to $19.3 million. The board also permitted the district to hire a geotechnical engineer. The contract is not allowed to exceed $20,000.

Both requests passed in 6-1 votes. Barbara Razzano said she voted ‘no’ because she did not support the project.

Monday, October 11, 2010

Razzano continues records chase

Oct. 8, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

Barbara Razzano will go to court to enforce an open records ruling against the New Castle Area School District.

“We’ve decided to move ahead with that,” said Pittsburgh attorney Ronald D. Barber, who represents the school board member.

He would not disclose when the filing would take place.

District solicitor Charles Sapienza said Razzano already has information on the city’s youth football program.

Razzano asked for documents dating back to March 2008 when the school board voted to have Red Hurricane head coach Frank Bongivengo Jr. oversee the program. She maintains the district has not fulfilled her request.

“The position of the administration and myself is that we have complied with the directive of the (Pennsylvania) Office of Open Records,” Sapienza said during the school board’s September work session.

“We gave them all records. We never possessed, controlled or created those records.”
In April, the district filed a petition for review of the state agency’s decision. The action occurred when the district learned board member Mark Kirkwood also had financial records relating to the program.

Sapienza said he was satisfied Bongivengo and Kirkwood made good-faith efforts to provide the materials Razzano wanted.

Days prior to the Aug. 31 pretrial hearing in Lawrence County common pleas court, Sapienza asked Judge J. Craig Cox to discontinue the case. However, Cox wanted to meet with the parties.

Sapienza reportedly told Cox that the district would provide whatever records Razzano believed she still did not possess.

“I’m telling you all (Bongivengo and Kirkwood) have told us, ‘That is all there is,’” Sapienza said to the board.

He added Razzano’s attorney made no request for records during the session with the judge, who had agreed to dismiss the district’s petition.
“If they believe there is something specific that has not been turned over, then let us know,” Sapienza said.

Terry Mutchler, the Office of Open Records’ executive director, said it is up to Razzano to move her case forward. She said the agency is awaiting a state Commonwealth Court ruling regarding its enforcement powers.

Razzano’s second notice, submitted in December, sought the following items: an original bank statement with balance totals and check descriptions; deposit slips, bank information from March 12, 2008, through June 17, 2009; a list of all signers for banking; and the minutes and names/titles of the executive committee.

A Pennsylvania State Police investigation is continuing into Bongivengo and the city youth football program’s finances. No announcement on the case is expected to take place until the season concludes.

The district does not fund the program and Bongivengo did not receive compensation. Concession sales at Taggart Stadium during the district’s football games provide the money necessary for operations.

A group of volunteers now handles the funds associated with the youth teams, while the ’Canes coach oversees the football operations.

Wednesday, October 6, 2010

No handouts

Oct. 6, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

First came the words of support and some followed with donations.

The one-, five-, 10- and 20-dollar bills presented to the Lin family were politely rejected and quickly returned. One spurned China Banquet customer threw $20 at the register and exited.

Gaofeng Lin said his family appreciates the community’s response after the theft of $11,000 earmarked for his grandmother’s cancer treatment.

His father, Jiesheng, was leaving the next day for the Chinese province of Fujian.

“(The customers) feel bad,” said Lin, a 2005 New Castle High graduate. “We do appreciate their sympathy. We’re very thankful.”

And that’s where it ends. No fundraisers, charity, benefits or gifts for the Lins, who have operated the business for the past 10 years.

“We want to use our hands to earn our money back,” he said. “We want to do something, like cooking your food.”

The theft occurred around 2:30 p.m. Friday at the North Jefferson Street buffet. Lin said seven Spanish-speaking men and women entered the building and ordered takeout meals. He said they had not been in the restaurant before.

Within the 15 to 20 minutes they were there, one member of the group asked where the bathroom was located. The money was gone when they left.

Lin said the money was in a bag and out of sight. Approximately $200 was also taken from a waitress’ laptop case.

“It seems like they knew it was in there.”

The city police department has not released a report on the incident.

Lin’s 75-year-old grandmother, Sai-Ying Chen, is in a hospital for lung cancer. However, she is unaware of the seriousness of the illness. Lin said her physicians have placed the responsibility of disclosing the information to Chen’s relatives.

“She doesn’t know she has cancer,” he said.

Lin said the doctors demand payment before starting treatment. They have provided enough money to have her placed into a treatment center.

“If you don’t have money, you’re waiting to die. They only accept cash.”

The Lins have borrowed money from family to help with costs. The cash was withdrawn Friday, he said, because their bank was closed on the weekend.

Lin said his father expects to head to China in one to two months with the funds needed to start the grandmother’s treatment.

Some have suggested to Lin that the theft was an inside job. He rejected the idea.

“People here are pretty nice.”

In the meantime, Lin said that people wanting to help should come to the restaurant — and eat.

“We want to earn it.”

Wednesday, September 15, 2010

City schools clear state's bar

Sept. 15, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

Target practice bolstered George Gabriel’s confidence as New Castle prepared for the state’s 2010 assessment test.

The superintendent was pleased, but not surprised, when the school district earned its fourth consecutive Adequate Yearly Progress citation.

“We were able to give preassessment tests that correlated with the (Pennsylvania System of School Assessment test),” Gabriel said. “I knew months ago that we did pretty well.”

The annual testing is required under the federal No Child Left Behind Act. Schools are scored on performances in math and reading in addition to the number of exam participants and school attendance/graduation. Students in grades three through eight and 11 take part.

Math and reading performance are at the core of the PSSA. In reading, 63 percent of the students must attain advanced or proficient comprehension. That goal is 56 percent in math.

The district’s third-grade students in the John F. Kennedy, Thaddeus Stevens and West Side primary centers posted the best results. Thaddeus Stevens students turned in a 81.8 percent showing in reading. The top math effort came from West Side with a 92.7 rating.

Next year, the goals are higher.

“The challenge is that the state has raised the bar in reading and math for the 2011 test,” Gabriel said.

The math standard jumps from 56 to 67 percent, while the reading target increases from 63 to 72 percent.

Using the Pennsylvania Department of Education projections, the district will meet the higher criterion set for math. However, George Washington Intermediate Elementary School and the junior/senior high school are trailing the 2011 goals for reading.

Gabriel said data-driven instruction allows teachers to pinpoint problem areas.
“We could see where there were deficiencies and change instruction accordingly,” he said. “Our math and reading scores are showing that the district’s curriculum teaching techniques are making a difference.”

According to the state, New Castle had an 86.3 graduation rate. The goal was 85 percent.

Students also were tested in math and science. However, those results were not part of the overall scoring. Three grades took part in each section.

Participants in the science section were made up of the fourth grade (65.4 percent were advanced or proficient), eighth grade (33.3 percent) and 11th grade (27 percent). Classes part of the writing exam were fifth grade (54.8 percent), eighth grade (63.3 percent) and 11th grade (72.4 percent).

Tuesday, September 14, 2010

Girl wows with muscles, healthy lifestyle

Sept. 14, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

A New Castle youth’s physique has amazed bodybuilders, fitness experts, classmates and, well, pretty much anyone who sees her.

Genetics are responsible for 11-year-old Mikala Henry’s build — a sculpted appearance that others spend years in the gym to obtain.

Mikala’s impromptu appearance at an international sports festival generated a stir and led to an article in a national women’s fitness magazine. However, the sixth-grader wants to turn the attention from herself and focus on battling childhood obesity while promoting healthy lifestyles.

“She’s a natural,” her father, Alton, said.

Mikala played hard in her mother’s womb.

“The twisting, twisting, twisting in my stomach,” Charmagne Henry said of her pregnancy.

The child’s arrival gave a hint of what was ahead.

“You could see she was muscular. She sat up (on my stomach) and looked like she was flexing,” Charmagne said. “She was born to be an active child.”

People asked Mikala’s parents early on if she worked out.

“Work out? She’s too young,” Alton said. “(My wife and) I were like that, too. Never touched a weight and was in excellent shape.”

“As the years went on, I just got used to it,” Charmagne added.

A trip to Columbus, Ohio, in March placed the George Washington Intermediate Elementary student in an unexpected spotlight. Mikala was there to participate in the gymnastics portion of the 2010 Arnold Sports Festival.

The four-day event is named after famed bodybuilder, actor and California Gov. Arnold Schwarzenegger. The festival, started in 1989, features 44 events.

The bodybuilding venue gained Charmagne’s attention.

“I thought Mikala needs to be here,” she said. “I knew she’d fit right in.”

As the family entered the area, Mikala found people converging on her.

“The paparazzi came out of the woodwork,” Charmagne said. “They thought she was a bodybuilder.

“It was just crazy.”

A number of male and female bodybuilders, such as Lou Ferrigno (who played television’s “The Incredible Hulk”), Toney Freeman and Denise Masino approached and posed with the youngster.

“That was amazing. I was excited,” Mikala said.

Robert Kennedy, a bodybuilding guru and magazine publisher, also met the youngster. He profiled her in the July edition of “Oxygen.”

While she enjoys the attention, Mikala said she is concerned about the health of her classmates. She defies the common notion that children dislike healthy food.

“You are what you eat, and that’s how I raised them,” Charmagne said.

Mikala enjoys broccoli — cooked and raw — and eats fruits, vegetables and beans in addition to baked fish and chicken.

“I saw these kids who were obese, and I felt sorry for them,” she said. “I wanted to help them eat right and exercise.

“They can have diabetes, high blood pressure and heart attacks.”

To help others, she is creating Internet videos that focus on exercise and nutrition. Her family is working on a series called “Healthy Choices with Little Mikala.” Her website is http://littlemikala.weebly.com/.

Monday, August 9, 2010

Community helps family

Aug. 7, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

Phyrn Womer took a break to say thanks.

The words of appreciation came out between prolonged pauses and intermittent sobs.

“The generosity of the whole community is overwhelming,” she said. “We just thank the Lord that my husband and I are here today.”

It’s been almost a month since Bob and Phyrn Womer lost their Wilmington Township home in a fire.

During that time, friends, family, church members and community residents delivered supplies, prayer and care.

“I just don’t know what to say,” Phyrn Womer said.

The Womers have lived at the corner of Route 208 and Covered Bridge Road for 54 years. Bob Womer, a retired floor installer, built the home with $10,000 he received under the GI Bill.

“They were one of the first ‘English’ families to build here,” said daughter-in-law Barb Womer.

They have been a part of the Amish community for all those years, said Peggy Foht, the Womers’ daughter. Two weeks before the fire, her father went to a barn raising.

“Mom and dad have always given,” she said. “Now, they’re just getting back.
“Once or twice a day there’s an Amish family to stop and see my mom and dad to check on them.”

Yesterday, the rebuilding began.

The Womers’ Amish neighbors planned to work on the structure the morning after the July 9 blaze.

The couple’s insurance company slowed the pace of recovery. Bob Womer said the damage was estimated at $100,000.

“The Amish community was sort of taken aback by that,” Foht said. “They’re use to just jumping right in.”

The insurance company paid for the supplies. The Amish are donating their labor.

JEEMCO Inc., a New Wilmington construction company, contributed equipment and workers.

Tim Womer, the couple’s oldest son, said approximately 20 Amish men in addition to other workers arrived at the home between 7 and 7:30 a.m.

“Within a couple of hours we had the whole roof and everything else torn off,” he said. “They immediately started putting a new structure up.”

A 6-year-old also helped as he removed torn hardwood flooring.

Bob Womer expects to return to their home by Thanksgiving.

Until then, he and his wife are staying in a camper on the property.

“What we lost was just material things,” Phyrn Womer said. “We just thank the Lord for our family and all the wonderful, wonderful friends that we have.”

Thursday, July 29, 2010

Volunteers to handle youth football finances

July 29, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

A group of volunteers has created an organization to oversee funds for New Castle’s youth football teams.

The action continues Red Hurricane head football coach Frank Bongivengo Jr.’s supervisory role while removing himself from the finances.

The program is the subject of an open records dispute, which will be heard in late August. In addition, Lawrence County District Attorney Joshua Lamancusa and Pennsylvania State Police are investigating approximately $3,200 in purchases related to the program.

“I don’t want to put my wife (Karen) and myself through that again,” Bongivengo said about initiating the change.

Pat Minenok will serve as head commissioner of the group New Castle Youth Football. Other commissioners are Patsy Cioppa, Jeff Morell and Craig Anderson. Minenok said he and Cioppa are the co-signers on a new bank account created for league operations.

The youth program is for district students in grades three through six. However, it is not operated by the school system, which funds teams starting in the seventh grade.

In March 2008, the school board supported Bongivengo’s request to supervise the city teams. The county’s youth football league said it would ban New Castle from play unless Bongivengo took over, the coach told the board.

In volunteering to run the program, Bongivengo asked for permission to operate the Taggart Stadium concession stands. He said the money would be used for youth football expenses and contribute to the district program.

The school district made an initial investment of $23,000 to purchase equipment and pay vendors owed money from the defunct youth teams.

Bongivengo addressed the controversy in a letter to parents.

“Although some have tried to bring it down, we can assure you that the main priority of this program is our children,” he wrote. “Our goals remains the same ... teaching our young children the fundamentals of the game as well as providing them with a structure(d), safe and fun environment.”

He added that the commissioners will provide open access to financial records upon request.

Approximately 110 have registered for the upcoming season, Minenok said.

Students in West Pittsburg, the city’s South Side and East Side play for New Castle Black and practice at Deshon Field. The New Castle Red squad, which practices at George Washington Intermediate Elementary, is made up of youth from the North Hill, Mahoningtown and the West Side.

Sign-ups will continue through tomorow from 5 to 8 p.m. at Taggart Stadium. Next week, registration will take place from 6 to 8 p.m. at George Washington and Deshon Field.
Minenok estimated that 155 students participated in the 2009 season. He expects to surpass that total for the 2010 campaign.

For additional information, call Minenok at (724) 714-1447.

Tuesday, July 27, 2010

Fraud scandal trial date moved

July 27, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

Attorneys in the Affordable Housing mortgage fraud scandal requested yesterday that the federal trial be rescheduled for October.

U.S. District Judge Gustave Diamond is expected to approve the motion, which involves Anthony J. Staph Jr. of Neshannock Township and Nicholas DeRosa, a New Castle resident.

The move also would affect the sentencing of Robert Ratkovich of 512 Norwood Ave. Ratkovich pleaded guilty in July 2009 to one count of bank and mail fraud conspiracy and one count of money laundering conspiracy.

He was to be sentenced tomorrow morning in Pittsburgh federal court.

The U.S. Attorney’s Office have accused Ratkovich, Staph and DeRosa of being part of a conspiracy involving Affordable Housing of Lawrence County, a defunct, nonprofit housing agency. First Commonwealth Bank reportedly was defrauded of $250,000 when it agreed to finance seven city properties at inflated prices, prosecutors charged.

A former city school administrator and councilman, DeRosa was charged with one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy. A real estate appraiser, Staph was indicted on one count of bank fraud.

The jury selection and trial for Staph and DeRosa had been set to begin Aug. 9.
Attorney Efrem M. Grail asked to continue the trial to Oct. 4.

“Unfortunately, each of the three principal attorneys in this case had already scheduled family vacations out of the jurisdiction and had prepaid travel reservations which could not be changed without significant financial penalties,” Grail wrote.
Assistant U.S. Attorney Brendan T. Conway and Staph’s counsel, attorney Thomas J. Farrell, agreed to the motion.

In connection with the continuance, the U.S. Attorney’s Office asked Diamond to move Ratkovich’s sentencing date to late October. Conway said that as part of Ratkovich’s plea agreement, the former city councilman agreed to participate in the government’s case against Staph and DeRosa.

In a pretrial opinion released last week, Diamond ruled Staph and DeRosa would go on trial together. The judge refused to dismiss the one count against Staph and DeRosa’s conspiracy to commit money laundering charge.

Wednesday, July 21, 2010

Youth football expenses detailed

July 21, 2010


By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

Coach noticed the cones.

They weren’t part of the equipment given to New Castle youth football teams in 2008. Neither were the extra footballs, paper cups and oranges.

Frank Bongivengo Jr. learned volunteer coach Pat Minenok bought the supplies for his players.

The New Castle High head football coach appreciated the gesture but disapproved of it.

“If you or any of the other coaches start spending your own money on this program, what’s going to happen when you guys leave and the next guy can’t do that?” Minenok recalled the coach saying. “People are going to begin to expect the same things.”

“Frank said (the supplies) had to come from the program.”

Minenok, who is also an assistant varsity coach, didn’t ask to be repaid and didn’t keep the receipts.

“I didn’t think it was anything that was important,” he said.

The coach reimbursed Minenok $120.

FINANCES

Bongivengo ignored his own directive.

A review of Bongivengo’s financial statements and checks document that the coach and his wife, Karen, spent approximately $2,100 on the youth and district football programs. They also paid $1,270 in cash to stock the Taggart Stadium concession stand.

However, approximately $3,600 in ATM and bank withdrawals along with transfers from the youth football account took place in 2009. While no receipts are provided, Bongivengo detailed the expenses in a letter to the district.

Minenok’s $120 reimbursement is one example.

Through a Right to Know request, the New Castle News obtained Bongivengo’s financial information and correspondences with the city school district regarding the youth football program.

The Red Hurricane coach approached the school board March 12, 2008, with a request to oversee the city’s youth teams, featuring students in grades three through six.

“The first problem and concern we had was a lack of proper supervision and guidance — lack of quality coaches who have a kid-first mentality,” he said.

ULTIMATUM

Officials of the Tri-County Youth League reportedly told Bongivengo along with school board members Mark Kirkwood and Fred Mozzocio about their issues with the New Castle teams.

“(They) basically gave us an ultimatum saying that they would not allow us to play in the league any longer unless it was taken over by me.”

The board agreed to the move in a 9-0 vote. The district provided an initial investment of approximately $23,000 to purchase new equipment and to pay vendors owed money from the disbanded teams. Attorney Dallas Hartman helped to offset the district’s costs with a $10,000 contribution.

Bongivengo also requested that backers of the youth football program operate the Taggart Stadium concession stands. The district told Bongivengo he would have to split the use of the concession stand with the cheerleaders booster group.

The district budget funds the football program starting at the seventh-grade level. With game-day food sales, the youth football teams had their primary funding.

Bongivengo told the board he would also earmark a portion of the money for the upper grades.

During the first season, Bongivengo asked Kirkwood to assist with the finances. The school board member said he has been a youth football volunteer for approximately 30 years.

“He wanted me to help with the checkbook and that, since I had been around for so long,” Kirkwood said.

Working with Karen Bongivengo, he performed bookkeeping and made deposits from the concession stand sales. Kirkwood kept the funds in an account once used by the East Side Boosters.

Because the school district had purchased equipment for the youth teams, profits went into the bank.

“That’s why we had a surplus,” Kirkwood said.

In March 2009, he turned over approximately $9,600 to Bongivengo’s New Castle Football account.

ONE ACCOUNT

“He wanted one account instead of two,” Kirkwood said. “That was fine. He and his wife, Karen, were going to do the books anyway.”

He threw out the receipts when the 2008 season ended. Kirkwood said he was not questioned in the past about the practice. He said he has bank statements for the previous seasons.

A three-man committee of Minenok, Wayne Ryan and Pat Cioppa oversaw the league the next season. Minenok assisted Karen Bongivengo with the finances.

“Whenever we would get money from concessions, Karen wanted to get things verified,” Minenok said. “She would call me over and sit down and count the money. We would count it, initial it and deposit it.

“It wasn’t computerized or anything like that. It was handwritten.”

The youth program brought in approximately $14,000 in revenue during 2009. A majority of the group’s purchases involved supplies for the concession stand and football equipment. Other expenses were for ambulance service, trophies and pizza parties.

On two occasions, funeral floral arrangements were purchased. One for New Castle sports announcer Harry Dattilo and another for the family of a football coach, whose mother had died.

One question mark involved $3,146 spent on 12 airline tickets for Frank Bongivengo’s son and his friends. In an interview with The News earlier this month, Bongivengo said the tickets were paid on April 13, 2009, with the wrong debit card.

The mistake was realized the same day, he said. The money collected from the students for the trip, $2,470.70, was placed in the football account to cover the costs. The amount was paid in full on July 3, 2009, when the last of the students turned in their money.

TRANSFERS

That leaves the $3,600 in cash withdrawals and transfers that lack documentation. The 14 items range from $40 for party supplied for a youth football party to $2,250 in reimbursements through online transfers.

In a letter to the school district, Bongivengo said he made the transfer to reimburse himself for “expenses I incurred during the 2008 Pop Warner season as well as personal money spent in April and May 2009 for food, weightlifting, (college) recruiting expenses, printer for stadium, cables, ink.”

The coach said he withdrew $400 to provide change for the concession stand and took out $200 for the Pitt Football Passing Camp. Bongivengo also noted that he paid $62 for a graduating senior to take a college entrance exam.

The Bongivengos spent $2,100 of their own money at the beginning of 2010 on the youth football program. The money was used for “picture footballs,” programs and program design costs.

“We just want to run the program,” Minenok said. “We want to get the kids playing football.
“(Bongivengo) has all these different programs to worry about than just Pop Warner.”

Thursday, July 8, 2010

Coach explains purchase mix-up

July 8, 2010


By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

A flight to Florida met with unexpected turbulence a year after departure.

Today, state police are investigating the purchase of 12 airline tickets made from a bank account that supports the New Castle school district’s football programs.

Red Hurricane head football coach Frank Bongivengo Jr. said yesterday that the questionable transaction “was a simple, honest mistake that was rectified.”

The tickets were part of a graduation trip organized by Bongivengo’s son, Michael, and 11 of his friends. Last year, the 12 spent a week in Florida from July 5 and July 12. Each graduate paid for his own expenses.

The coach’s wife, Karen, collected money for the airline tickets. Another parent, whom Bongivengo did not identify, handled payments for the hotel rooms.

Working with a travel agent, Karen Bongivengo ordered the tickets April 13. She planned to deposit the money into their bank account that day.

“The price at that point was going to go up for the tickets,” Frank Bongivengo said. “We received the confirmation from the airlines on April 13. On the same day we realized, we had given them the wrong numbers.

“It was simply a matter of grabbing the wrong card.”

Bongivengo said the monies collected from the teens were deposited into the football account that same day when the mistake was discovered.

Financial statements and airline records obtained by The New Castle News confirmed Bongivengo’s timeline of events.

Bongivengo provided a notice from Southwest Airlines acknowledging the ticket order was approved at approximately 1:30 p.m. April 13. At Bongivengo’s request, the names of the students involved in the trip were blacked out.

An airline tracking service, www.flightstats.com, confirmed the flight from Pittsburgh to Orlando and the return trip had taken place.

The “New Castle Football” account statement for April 2009 showed 12 tickets were purchased for $3,146.40. The money was withdrawn from the account on April 16.

Two deposits totaling $2,470.70 were made on April 13. By July 3, the rest of the funds had been placed into the account.

“The remaining monies came in from the kids that hadn’t paid (prior to April 13),” Bongivengo said.

Bongivengo received school board permission on March 12, 2008, to oversee the city’s youth football program. The countywide youth football league had threatened to ban New Castle’s two squads unless better supervision occurred.

That board agreed to Bongivengo’s request in a 9-0 vote. Of those members, J. Allan Joseph, Mark Kirkwood, Karen Humphrey, Fred Mozzocio and Barbara Razzano serve on the current board.

The school district did not create nor does it oversee the “New Castle Football” account, which Bongivengo opened. A portion of concession stand sales during games at Taggart Stadium fund the account.

The state police investigation is taking place as the school district prepares to appeal an open records ruling in Lawrence County common pleas court.

Razzano, acting at the request of a group of parents, initiated a right-to-know request in November regarding the youth program’s operations, dating back to March 12, 2008. Not satisfied with the district’s response, she appealed to the Pennsylvania Office of Open Records.

The district argued that it did not possess or control the records Razzano sought. The agency ruled in Razzano’s favor. The appeal is scheduled for Aug. 31.

Last week, county Distinct Attorney Joshua Lamancusa said the state’s investigation was in its early stages.

(Next week: A review of the youth football team’s finances.)

Wednesday, June 30, 2010

New Castle board approves consolidation

June 30, 2010

Patrick E. Litowitz
New Castle News

NEW CASTLE — Financial incentives and a revamped plan persuaded New Castle school board members to consolidate the district’s kindergarten through second grades.

During yesterday’s special meeting, the board approved the creation of the Harry W. Lockley Early Learning Center. Construction is scheduled to begin in the fall of 2011.

The measure passed 7-2. Backing the project were J. Allan Joseph, Mark Kirkwood, Karen Humphrey, Fred Mozzocio, Brad Olson Jr., Anna Pascarella and Mary Ann Tofel.

Dr. Marilyn K. Berkely and Barbara Razzano voted no. Razzano, who was not in town, participated in a teleconference.

“I commend this board for taking the courage during these difficult times to make such a good decision,” superintendent George Gabriel said. “Not only are we setting the foundation for the young children of this district, but we are being fiscally responsible.”

Gabriel declared the consolidation effort dead in May. At the time, Kirkwood, Mozzocio, Olson, Berkely and Razzano said they were not prepared to back the project. Their concerns included the original $29 million cost, the state’s fiscal condition, the effect on taxpayers and the overall economy.

Earlier this month, the district was selected to receive a $15-million, interest-free bond issue. Gabriel asked the board at its June 7 work session to reconsider its position. Four of the seven members present agreed to the superintendent’s request.

David Esposito of Eckles Architecture & Engineering reworked the original proposal, which involved renovations to Lockley and George Washington Intermediate Elementary School. Esposito focused on the early learning center.

Eckles estimated the Lockley renovations to run between $16.4 million to $19.3 million. The district will use money from its $9 million fund balance to cover costs over the $15 million benchmark.

In the interim, business manager Joseph Ambrosini discovered the funding offered additional benefits.

Under the program, the state issues the bonds. The federal government, through its stimulus program, will make interest payments on the district’s behalf to bond holders.

New Castle must repay the bond in 18 years. During that period, Ambrosini said, the state will place the district’s payments in an interest-bearing account. When the bond matures, New Castle will earn $3.5 million to $4.4 million.

The exact amount will be known when the financing is finalized.

Ambrosini added that the state will reimburse the district 28 percent of the project’s total cost.

“I’m happy with it,” he said. “I would rather do it now with zero percent financing and how it’s structured through the interest savings.”

As part of its vote, the board hired Eckles to oversee the project. Bids are not required for a professional service contract, Gabriel said.

“We have a good relationship with Eckles. They have worked well with us.”

Esposito said Eckles will have a building design prepared within two to three months.

The renovations will not require the district to purchase nearby homes. However, it will need to acquire adjacent land, which Solid Rock Ministries owns.

Last year, a local animal welfare organization agreed to buy the property for $125,000. Neighborhood opposition and zoning issues halted the sale.

There was a lack of public interest in yesterday’s session, which included a vote on the $39.9 million budget for the upcoming school year. One parent spoke to the board regarding vandalized playground equipment before discussing concerns with the consolidation project.

Wednesday, June 9, 2010

Board weighs project's dollars

June 9, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

The pros and cons remain unchanged, but $15 million may sway the support required to consolidate New Castle schools.

Mark Kirkwood broke a prolonged silence before agreeing to the proposal. During Monday night’s work session, he provided the fourth vote of the seven school board members present.

Originally scheduled for tonight’s board meeting, the consolidation project vote will be part of a special meeting taking place at 5 p.m. June 29.

The Pennsylvania Department of Education alerted Superintendent George Gabriel last week that the district was awarded a no-interest, $15 million loan. The money comes from federal stimulus funding earmarked for school construction projects.

Gabriel then unveiled a pared-down version of a kindergarten-through-second-grade building. The price tag dropped from $29 million to $19.3 million.

Renovations to George Washington Intermediate Elementary School were scrapped.

“Hopefully, it will change the complexion of the project in addition to some other things that could be done,” Gabriel said.

The early learning center would be built on the Harry W. Lockley Kindergarten Center site.

Approximately 5,000 square feet were trimmed from the original plans. David Esposito of Eckles Architecture & Engineering said that was accomplished through reducing gym size and five special education classrooms.

“Unless you can change the area of the building, I’m not interested in participating in some sham that we can make this cheaper,” Esposito said. “The only way you can make it cheaper is to make the building smaller.”

Business manager Joseph Ambrosini said the district will apply $4.3 million from its fund balance to lower the cost to $15 million. The interest-free loan will produce savings, in addition to closing West Side and Thaddeus Stevens primary centers and making staff reductions.

District third-graders would be housed in the John F. Kennedy Primary Center.
The district pays $2.9 million annually on bond issues associated with the construction of its junior/senior high school. The early learning center would add $250,000 to its yearly debt, according to Ambrosini.

“There’s going to be a whole lot of operating savings that could almost fund this project in its entirety.”

However, board members Dr. Marilyn K. Berkely and Barbara Razzano remained opposed.
Gabriel asked Berkely what the district should do.

“I just want to wait and see what happens when the new governor is in. That’s all,” she said.

Gabriel responded, “Wait for a new governor? You think that’s our answer?”

“No. I just think that’s a lot of money, and we can’t afford it right now,” she said. “Nothing’s changed in my mind.”

Esposito agreed that today’s economy is in poor shape.

“But if all of you believe in 15 years, it’s still going to be bad then we’re really in bad shape,” he said. “We’ll eventually get through this.”

“But you say that in an area that hasn’t recovered from the steel mills closing and that was 30 years ago,” board member Brad Olson Jr. said.

Olson passed on the consensus vote.

With Karen Humphrey, Anna Pascarella and Mary Ann Tofel backing the plan, Kirkwood represented the majority vote needed to move the proposal forward. He took several minutes before making a decision.

In the interim, Gabriel said it appeared the project was dead.

“I’ve been against (the project), but with $15 million, I’m going to say ‘Yes,’” Kirkwood said.

Friday, June 4, 2010

Stimulus funds may jump-start consolidation

June 4, 2010


Patrick E. Litowitz
New Castle News

NEW CASTLE — A federal award of $15 million means zero to the New Castle school district’s stalled consolidation project.

That’s “zero” as in no-interest loan or “zero” as in board members’ support.

Yesterday, Gov. Ed Rendell said 46 school districts were selected to receive $602 million through the federal American Recovery and Reinvestment Act.

The funds are designated to pay interest costs associated with one of three types of construction projects: energy or water usage reduction, early childhood education or learning lab expansion.

New Castle sought $21 million when it applied for the federal funds earlier this year as part of its proposed $29 million renovations. The project’s centerpiece was the creation of an early learning center on the site of Harry W. Lockley Kindergarten Center.

The plan also featured renovations to George Washington Intermediate Elementary School while closing Thaddeus Stevens, West Side and John F. Kennedy primary centers.

“These funds will help put people to work on vital construction projects, save energy costs and help improve educational programs — and the attractive financing will save the taxpayers more than half a billion in financing costs,” Rendell said in a press release.

However, Superintendent George Gabriel shut down the effort during a committee of the whole meeting on May 13. At the time, he said it appeared board members wouldn’t commit.

Their primary concerns were the expense involved, the state’s financial condition and overall economic uncertainty.

A formal vote wasn’t taken, but five of the nine board members told the New Castle News they wouldn’t support the plan. Gabriel had been prepared to poll the board on the project’s fate during its Monday work session.

“With this new development, we have to revisit the project and talk to the board,” Gabriel said last night. “The most important piece is are we going to do anything with this (money).”

He said one option would be a scaled-down version of the latest proposal. He declined to provide further details until he met with the board.

Under the guidelines, the state will issue bonds for the building projects. The stimulus dollars are allocated to cover the interest payments, allowing school districts to pay only on the money being borrowed.

“With federal help, we lowered costs and are helping our districts make these terrific improvements,” Rendell said.

Regional school district receiving funds include Sharon ($15 million), Farrell ($810,000) and Pittsburgh ($50 million).

If the New Castle school board declines to participate, the district’s $15 million share is returned to the state.

Friday, May 21, 2010

Rape suspect has history of arrests

May 21, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

Michael R. Tackett’s arrest on Wednesday continues a series of encounters with law enforcement dating back to 2005.

Four of those were rape cases while another dealt with stalking charges.

Tackett, 39, of 1459 14th St., West Pittsburg, is in Crawford County jail after being arraigned Wednesday night in Lawrence County. State police in Meadville filed charges against Tackett after the investigation of a May 24, 2007, rape that occurred in Woodcock Township.

He was charged with four felony counts of rape by forcible compulsion; two felony counts of sexual assault; terroristic threats; and simple assault. His bond was set at $500,000. A preliminary hearing is scheduled for 2 p.m. June 1.

Tackett’s capture took place after a five-hour standoff with state police. Troopers from the Meadville and New Castle stations attempted to serve an arrest warrant at 12:30 p.m. to the West Pittsburg resident. He refused to comply with orders to leave his home.

State police then called in its Special Emergency Response Team. Seven members of the squad entered the home at 5:34 p.m. and quickly had Tackett in custody.

AWAITING TRIAL

Tackett had been free on $100,000 bond when Wednesday’s episode unfolded.

In a 19-count indictment, state police charged that Tackett repeatedly had raped a real estate agent on June 11, 2009, in Jefferson Township, Mercer County.

His trial is scheduled for July.

In December, Mercer County Common Pleas Court Judge Judge John C. Reed reduced his bail from $200,000 after Tackett’s defense attorney, Thomas W. Leslie, argued that the initial amount was excessive. Tackett testified that he had a back injury and that the county could not meet his medical needs, according to published reports.

State police opposed the move.

“Obviously, we were disappointed and alarmed that he bonded out,” state police Trooper Dan Sindlinger told the Sharon Herald.

At the time, Sindlinger said Tackett was potentially dangerous and may be singling out female real estate agents. The victim of the 2007 rape in Woodcock Township worked as a real estate agent when Tackett reportedly raped her.

West Pittsburg resident Stacey Maravola said she last saw Tackett when he was released from custody.

“Other than that, I haven’t seen him,” she said. “He was real quiet. He didn’t come out.”

OTHER CHARGES

The first two of Tackett’s cases involved charges filed in September and October 2005. In both instances, known prostitutes claimed Tackett had raped them.

An Ellwood City woman charged that Tackett raped her at gunpoint in late April 2005. Charges were dismissed when the Lawrence County District Attorney’s Office could not locate the alleged victim.
In the second case, a former New Castle resident told police Tackett attempted to rape her on Dec. 1, 2003. During an encounter on May 31, 2004, she stated, he had succeeded.

On July 19, 2006, a jury found Tackett not guilty on the six charges.

A year after the jury verdict, an Austin, Texas, woman claimed Tackett had stalked her as she walked along Route 422 in Shenango Township. That woman alleged that in the early morning hours of July 20, 2007, Tackett was in a wooded area, following her.

Reportedly terrorizing her, Tackett allegedly said he was going to sexually assault and then kill her.

Township police filed six charges against Tackett. When the woman failed to appear at three hearings, police withdrew the charges.

Other charges Tackett has faced include:

•Burglary: State police said Tackett stole two safes containing about $10,000 in cash and business checks from a Union Township business on Feb. 25, 2002. The four charges, filed Nov. 22, 2005, were dismissed when then-District Judge James Reed ruled the allegations could not be proven.

•Receiving stolen property: State police said a trooper found a stolen semiautomatic pistol while searching Tackett’s home as part of a rape investigation. A felony charge was filed Nov. 22, 2005. The Lawrence County District Attorney’s Office dropped the charge Sept. 22, 2006, when it could not find the alleged victim.

•Harassment: State police filed a summary harassment charge on June 1, 2005. Tackett was found guilty and fined $123.50.

Thursday, May 20, 2010

Standoff

May 20, 2010


By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

First came the cheers and then the obscenities.

Accused rapist Michael R. Tackett’s arrest after a standoff with Pennsylvania State Police stirred outrage among his West Pittsburg neighbors.

“He deserves everything he gets,” resident Lisa Ann Duncan said.

Tackett, 39, of 1459 14th Street, surrendered around 5:40 p.m. — more than five hours after police attempted to serve him with an arrest warrant.

The latest charges result from a state police investigation of a May 24, 2007, rape in Woodcock Township, Crawford County. He is accused of rape, sexual assault, terroristic threats and simple assault.

District Judge Jennifer L. Nicholson arraigned Tackett last night and set his bond at $500,000. He was placed in Lawrence County jail. Tackett is expected to be transported this morning to Crawford County jail.

State police said additional charges will be filed stemming from yesterday’s event.

“Thank God, it’s over,” Stacy Maradola said. “We’ve all grown up with him. He’s lived down the street since we were kids.”

Tackett is awaiting trial in connection with the rape of a real estate agent on June 11, 2009, in Jefferson Township, Mercer County. He was released on $100,000 bond in December. That case is scheduled to be heard in July.

The standoff began at 12:30 p.m. when state police from the Meadville and New Castle stations arrived at Tackett’s home.

Tackett refused to come to the door, according to Lt. Kirt Snyder. He said the state police called in its Special Emergency Response Team to take Tackett into custody.

“We had intelligence that weapons were in the house,” he said.

Police ordered an evacuation of the surrounding area. Maradola was told to leave her 13th Street home at 2 p.m.

“We were watching everything there in my garage,” said Brian Trott, who lives next door to Tackett.

“We started hearing knockin’ on my front door, and we came up. It was a cop. ... He just kicked us out.”

Tackett’s wife reportedly called him from a nearby location. Meanwhile, an officer used a loudspeaker to urge Tackett to surrender.

“We have given you every opportunity to exit peacefully,” an officer told Tackett. “You need to come out of your home. We’re not going to injure you or beat you up.

“You heard from your wife. She wants you to come out.”

Canisters were fired into Tackett’s home throughout the stalemate. Some contained a chemical agent while others produced loud noises, Snyder said.

At 5:34 p.m., seven response team members entered the home. Tackett was in custody within minutes.

“He was given multiple, multiple opportunities to come out of the residence,” Snyder said.

Located upstairs, Tackett did not resist arrest. Snyder would not disclose if any weapons were found.

As police led Tackett out of his home, residents heckled him. Maradola said Tackett’s legal troubles were well known.

“I wasn’t surprised (by the response) — not in a town where everybody knows everybody,” she said.

No injuries were reported. However, Noga Ambulance transported Tackett to a local hospital. Snyder would not disclose if it was Jameson Hospital or Ellwood City Hospital.

Assisting state police were departments from New Castle, Shenango Township, Neshannock Township and the county sheriff’s office.

Wednesday, May 19, 2010

District financially sound, Gabriel says

May 19, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

The New Castle school system’s 2010-2011 budget process started in February and ends next month.

Here’s the abbreviated version.

•No tax increase
•Budget set at $39.9 million, up $1.4 million from this year
•Sixty-six cents of every dollar the district receives goes toward employee salaries and benefits
•Seven teacher positions eliminated through early retirement. Two teachers furloughed.
•District’s fund balance to increase $1.2 million for an overall total of approximately $9 million
•Athletic program requires $435,000 from district’s general fund
•Food service program self-sustaining

“We are financially sound,” Superintendent George Gabriel said. “Academically, we are preparing our students not just for the local and state marketplace, but for the global market.”

Last night, Gabriel and his administrators presented the second of two budget work sessions. The board will conduct a special meeting at noon May 25 to vote on the preliminary budget.

The district has maintained a tax rate of 17.27 mills for seven consecutive years. That comes despite a $19 million decrease in the value of district-based properties during an eight-year period.

Business manager Joseph Ambrosini said a 100 percent collection rate would bring in $9.3 million. In reality, the district collects between 80 percent to 85 percent of those funds.

Property taxes are the school system’s second major funding source. The state provides $23.8 million.

Gabriel said the district’s financial focus is the continual review of staffing needs.
“That’s where the money is in — your professional staff,” he said.

However, economics were not the reason two teachers are scheduled to be furloughed. A declining enrollment was the culprit, Gabriel said.

Because of contractual obligations with the teachers union, the two instructors will return next year as day-to-day substitute teachers. They will not see a pay reduction.

The quality of educational instruction will not suffer, said Terence Meehan, assistant to the superintendent.

“We’ve enhanced our programs tremendously,” he said. “Our students have an opportunity that doesn’t exist in other schools.”

Sixteen courses have been added on the secondary level during the past three years. Meehan also pointed to the district’s SAT preparation program conducted in cooperation with the Princeton Review and the high school’s partnership program with Seton Hill University.

“We’ve eliminated teachers and maintained classroom sizes,” he said. “We’ve just worked smarter as far as the way we’ve scheduled people and use the staff we have.”

Based on an enrollment of 3,350, the district will spend an average of $11,766 per student in the 2010-2011 school year.

Sports programs attract the most students in terms of extracurricular activities. However, they are poor funding sources. Of the district’s 11 varsity sports, football along with boys and girls basketball are the primary moneymakers.

The three squads are expected to collect $47,000 in admissions next season. The district will provide $435,000 to supplement the programs.

Unlike sports, food services is self-supporting operation. Costs are expected to run $1.7 million, with revenues pegged at $18,000 under expenses. The difference will be made up from the food service’s fund $140,000 balance.

Tuesday, May 18, 2010

District seeks to overturn ruling

May 18, 2010


By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

Lawrence County’s common pleas court has been asked to referee an open records dispute.

The New Castle Area School District filed an appeal last week in response to a ruling from the Pennsylvania Office of Open Records. Last month, the agency ordered the district to honor board member Barbara Razzano’s request for records involving its New Castle Youth Football League.

The school board approved the legal challenge during its April 21 executive session. Razzano said she was not present when the decision was made.

Solicitor Charles Sapienza said the district does not possess the records. What has been obtained came from Red Hurricane head football coach Frank Bongivengo Jr. Those documents have been turned over to her.

During its March 12, 2008, meeting, the school board agreed to take over the city’s youth football organization. Razzano supported the move as part of the board’s 9-0 vote.
Bongivengo volunteered to run the program. He established a booster club, New Castle Football, to fund the operation. The group earns revenue during the football season from Taggart Stadium concession sales.

The district spent approximately $23,000 on equipment, uniforms and others supplies for participating students. That has been its investment in the program.

In a right-to-know request dated Nov. 11, 2009, Razzano asked for information on the youth program’s operations, dating back to March 12, 2008. Superintendent George Gabriel had to contact Bongivengo for the documents.

Sapienza said the district cannot legally compel Bongivengo or the New Castle Football boosters to produce and provide records.

A hearing to determine if the appeal will move forward is scheduled for 1:30 p.m. June 7 in Courtroom No. 3 in the Lawrence County Government Center.

Through Bongivengo, the district has provided records dating from October 2008 through March 6. They include deposits, receipts, bank statements and meeting minutes.

However, Razzano said in a May 6 correspondence that the records still do not satisfy her request.

Monday, May 17, 2010

Consolidation talk ends – for now

May 17, 2010


Patrick E. Litowitz
New Castle News

A plan to consolidate New Castle’s primary centers is no longer considered feasible.

Although the project was well received, its downfall was the $29 million price tag. Unknowns over the economy, funding sources and the state government’s fiscal management prompted city school board members to question the wisdom of moving ahead.

“We’re in one of the most volatile conditions this country has ever seen,” board member Brad Olson Jr. said at Thursday’s committee of the whole meeting.

“Our state, in and of itself, is in one of the worst conditions – if not the worst condition – it has ever been.”

Although a consensus vote wasn’t taken, Superintendent George Gabriel viewed the proposal as dead.

“I don’t see votes for this project to move forward,” he said. “I think we need to put it to rest.

“I think the administration needs to move forward on a capital improvement plan for our existing facilities.”

Contacted after the meeting, board members were asked how they would have voted on Gabriel’s recommendation to create an early learning center while closing three primary centers.

Barb Razzano, Dr. Marilyn Berkely, Fred Mozzocio, Mark Kirkwood and Olson said they disagreed with implementing the plan now. Kirkwood was out of town when the meeting took place.

Board President J. Allan Joseph, Karen Humphrey and Anna Pascarella supported the move. Attempts to contact Maryann Tofel were unsuccessful. However, in past meetings, she was one of the consolidation project’s strongest supporters.

“I’m frightened, just like all the other board members are about it,” Joseph said. “But I also have faith in George, Joe (Ambrosini), Stan (Magusiak) and Terry (Meehan).

“I saw how they turned (the district) around when they got here.”

As a formality, Gabriel said he will ask the board for a recommendation at its June work session.

Former board member Donna Donati questioned the project’s demise. Donati formed the ad hoc committee that examined the district’s building needs.

“I think he was emotional at the time,” she said of Gabriel. “Perhaps there wasn’t an overwhelming ‘Let’s go for it!’

“It was my impression that we’re just delaying it. I don’t feel like it’s dead. It’s premature to look into long-term debt whenever you have so many variables.”

During the meeting, Gabriel and his administrators reiterated the educational need for a kindergarten-through-second-grade center, which would have been built at Harry W. Lockley Kindergarten Center. Business manager Joseph Ambrosini also outlined how the closures of Thaddeus Stevens, West Side and John F. Kennedy primary centers would create the savings to make the consolidation possible.

“Stop and think for a minute about our current structures,” said Terence Meehan, assistant to the superintendent. “(They are) the remnants of an old neighborhood school system.

“We approach education entirely different – not just here in New Castle, but everywhere – in the delivery of instruction. We’re trying to operate schools in the remnants of those days and that doesn’t work academically.”

Gabriel said he won’t be revisiting the topic.

“I hope nobody asks me to do another presentation,” he said in a semi-joking manner.

“The presentation was beautiful,” Donati responded.

Monday, May 10, 2010

Questions slow consolidation effort

May 8, 2010



By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

The million-dollar question is whether it’s prudent to move ahead on a $29 million school district consolidation plan.

That was the worry expressed earlier this week to members of a New Castle Area School Board sub-committee. The five-member panel is reviewing plans to overhaul the district’s elementary schools.

The proposal features the creation of an early learning center while closing three primary centers: West Side, John F. Kennedy and Thaddeus Stevens. Harry W. Lockley Kindergarten Center would be renovated to hold students in kindergarten through second grade.

The district’s third-graders would be moved to George Washington Intermediate Elementary School.
The cost to upgrade Lockley and make improvements to George Washington is estimated at $29 million.

“We can all agree for the past eight years, the writing on the wall has told us our No. 1 financial and policy concern involves a declining enrollment,” said former board member Donna Donati. “That alone dictates that a consolidation is imminent.”

However, economic realities forced Donati and others in attendance to question if it is time to move ahead.

She cited the state government as the culprit of her uneasiness — a looming spike in the state-funded pension plan, deficit spending, a potential reduction in education subsidies and an upcoming election. They are all reasons for concern and their potential effects on taxpayers, she said.

“You’re damned if you do and damned if you don’t,” said Lawrence County Controller David Gettings, who served on the ad hoc committee that examined the district’s building needs. “I’m to the point now where I don’t know what the right answer is.”

Last month, business manager Joseph Ambrosini outlined how the closure of schools and a reduction in staff would pay for the venture. He pegged the savings at $800,000 annually.

The yearly expense of the consolidation would be $700,000 to $900,000 during a 20-year period. That amount includes state reimbursement.

Ambrosini said if the consolidation plan was scrapped, the district would still spend the same amount to run the primary centers. The district would have to upgrade those buildings, which generates additional expenses.

“The issue comes down to what is the responsible position for where you are going and can you support it in some degree or fashion,” Gettings said.

Board member Dr. Marilyn Berkely said the committee should consider two points — can the district afford consolidation and will it improve the children’s education.

“As parents, we want the best for our children, but it should be only the best we can afford,” she said. “Bricks and mortar may make a new school, but they do not ensure an improved product.”
Stan Magusiak, assistant to Superintendent George Gabriel, expressed frustration with the ad hoc committee.

“You’re saying we can’t do it, because we can’t pay for it,” he said. “You had to think we could pay for it when you’re making those decisions.

“There’s all good questions here. But what are we trying to do? We’re spinning our wheels and not making decisions.”

The committee’s next meeting is at 6 p.m. Thursday in the district’s administration building, located at 420 Fern St.