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.