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.