Tuesday, May 10, 2011
Friday, May 6, 2011
Tuesday, May 3, 2011
Saturday, April 30, 2011
Friday, April 29, 2011
Friday, April 22, 2011
Wednesday, April 20, 2011
Homecoming
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
The scene was familiar to Chris Niles.
Cheers, clapping and high fives. “Eye of the Tiger” booming. A community pep rally to honor its hero.
The Hickory Township resident relishes competition. Niles’ latest victory overshadowed sports.
The 1995 Laurel graduate made a public appearance yesterday afternoon almost seven weeks after suffering a spinal injury.
“Just amazing,” Niles said of the approximately 100 people who gathered outside his Lakewood Road home. “It’s crazy. I didn’t expect it.
“There’s a lot of people who care about me. That’s a good thing.”
Laurel Elementary students crafted approximately 600 signs to welcome Niles’ return and encourage him in his recovery. The signs, each attached with a green-and-white, heart-shaped balloon, lined the length of Lakewood Road — from Eastbrook Road to Maitland Lane.
The community joined high school and elementary school cheerleaders in celebrating his arrival. Youth baseball players whooped, hollered and smacked their coach’s hand as he passed by.
The accident occurred in early March when a partially dead tree fell on Niles as he worked to take it down. He was trapped for four hours before rescue personnel arrived.
“I knew it was bad,” his brother, Jeff, recalled. “It was overwhelming that day. Chris was a trooper. I don’t know if most people could handle that.
“He is so strong and positive. It’s mind-boggling. He’s very positive and thankful to be alive.”
Niles was taken to Presbyterian Hospital in Pittsburgh for surgery and transferred to Mercy Hospital for initial rehabilitation. While paralyzed below the waist, Niles has taken an aggressive attitude toward therapy.
“Anything that was in front of me, I figured a way to get it done,” he said. “I feel that way about this, too.
“I’ve got kids to raise. When I was at Mercy, I put two pictures up of them. Every morning, I just got up and looked at them. I got up and did what I had to do. I didn’t do anything else. I didn’t think about the pain.”
Brother-in-law Ray Omer said doctors hope Niles’ gains will take place through additional rehab.
“He’s worked hard at it. When they call him “Rocky,” it’s no joke. He trains hard at everything he’s done. He’s overcome a lot of obstacles already.”
Niles is a former Laurel High School athlete, who played in the Laurel vs. Shenango alumni football game in November. He also won a national jujitsu title last summer in the Arnold Schwarzenegger Classic in Columbus.
Family, friends, neighbors and strangers bonded to help the Niles’ family.
“When you get hurt, all those things you can’t do you think about,” Niles said.
They cleared the back lot, performed work on the home and took on household chores.
Husband-and-wife architects Frank Ross and Toyna Natale started the process to adapt the house to Niles’ needs. Ross said doors will be widened, an elevator installed, barrier-free restrooms built and other modifications completed within a couple of months.
“We’ve had a ton of help,” he said. “People are coming over with saws.”
Niles had been to his home twice before yesterday’s event.
“The first day was tough for me. (Wife) Jennifer and I just cried. The second time was easier.”
Jennifer Niles said the community’s response has been incredible.
“Everyone in the community has come out to support us. We want to thank everyone for all they have done.”
Omer said the events dispelled a notion he had.
“Just when I thought it was every man, woman and child out for themselves, there’s been an awaking for me as well. The goodness of people is just pouring out.”
plitowitz@ncnewsonline.com
The scene was familiar to Chris Niles.
Cheers, clapping and high fives. “Eye of the Tiger” booming. A community pep rally to honor its hero.
The Hickory Township resident relishes competition. Niles’ latest victory overshadowed sports.
The 1995 Laurel graduate made a public appearance yesterday afternoon almost seven weeks after suffering a spinal injury.
“Just amazing,” Niles said of the approximately 100 people who gathered outside his Lakewood Road home. “It’s crazy. I didn’t expect it.
“There’s a lot of people who care about me. That’s a good thing.”
Laurel Elementary students crafted approximately 600 signs to welcome Niles’ return and encourage him in his recovery. The signs, each attached with a green-and-white, heart-shaped balloon, lined the length of Lakewood Road — from Eastbrook Road to Maitland Lane.
The community joined high school and elementary school cheerleaders in celebrating his arrival. Youth baseball players whooped, hollered and smacked their coach’s hand as he passed by.
The accident occurred in early March when a partially dead tree fell on Niles as he worked to take it down. He was trapped for four hours before rescue personnel arrived.
“I knew it was bad,” his brother, Jeff, recalled. “It was overwhelming that day. Chris was a trooper. I don’t know if most people could handle that.
“He is so strong and positive. It’s mind-boggling. He’s very positive and thankful to be alive.”
Niles was taken to Presbyterian Hospital in Pittsburgh for surgery and transferred to Mercy Hospital for initial rehabilitation. While paralyzed below the waist, Niles has taken an aggressive attitude toward therapy.
“Anything that was in front of me, I figured a way to get it done,” he said. “I feel that way about this, too.
“I’ve got kids to raise. When I was at Mercy, I put two pictures up of them. Every morning, I just got up and looked at them. I got up and did what I had to do. I didn’t do anything else. I didn’t think about the pain.”
Brother-in-law Ray Omer said doctors hope Niles’ gains will take place through additional rehab.
“He’s worked hard at it. When they call him “Rocky,” it’s no joke. He trains hard at everything he’s done. He’s overcome a lot of obstacles already.”
Niles is a former Laurel High School athlete, who played in the Laurel vs. Shenango alumni football game in November. He also won a national jujitsu title last summer in the Arnold Schwarzenegger Classic in Columbus.
Family, friends, neighbors and strangers bonded to help the Niles’ family.
“When you get hurt, all those things you can’t do you think about,” Niles said.
They cleared the back lot, performed work on the home and took on household chores.
Husband-and-wife architects Frank Ross and Toyna Natale started the process to adapt the house to Niles’ needs. Ross said doors will be widened, an elevator installed, barrier-free restrooms built and other modifications completed within a couple of months.
“We’ve had a ton of help,” he said. “People are coming over with saws.”
Niles had been to his home twice before yesterday’s event.
“The first day was tough for me. (Wife) Jennifer and I just cried. The second time was easier.”
Jennifer Niles said the community’s response has been incredible.
“Everyone in the community has come out to support us. We want to thank everyone for all they have done.”
Omer said the events dispelled a notion he had.
“Just when I thought it was every man, woman and child out for themselves, there’s been an awaking for me as well. The goodness of people is just pouring out.”
Thursday, April 14, 2011
Primary center's destiny delayed
By PATRICK E LITOWITZ
plitowitz@ncnewsonline.com
New Castle’s school board agreed to wait on a consultant’s recommendation before deciding on an early learning center’s future.
In the only show of unity regarding the $19 million project, the board voted 8-0 last night to hire Education Management Group LLC for $3,700.
Superintendent George Gabriel requested that the board allow a third party provide an analysis on whether it’s best to maintain the district’s three primary centers or renovate Lockley Kindergarten Center into a facility for students in kindergarten through second grade. At Monday’s work session, four of the seven members requested a vote to reconsider the project.
Company representative Dr. Ronald Stainbrook, a retired state Department of Education official, will supervise the evaluation.
“He will identify educational advantages (and) disadvantages to keeping the three elementary facilities or closing them and operating a single new (and) renovated facility,” Gabriel said.
Stainbrook, who worked as the state’s director of schools, was part of a group that studied that district’s finances in the early 1990s.
“This is his expertise,” Gabriel said.
The report will be completed within 20 days of his visit to the district. Business manager Joseph Ambrosini said he will speak to Stainbrook today regarding his arrival date.
Except for a question seeking clarification, the board passed the measure without comment.
During the visitors’ portion of the meeting, a district kindergarten teacher and a former school board member offered different views on the project.
“(Lockley) has not changed to meet the demands of our earliest learners,” said Victoria Bober, who teaches at Lockley. “This is also true for our other existing primary centers.”
Bober said the kindergarten center lacks the basics to accommodate its 300 students. She cited a leaking roof and malfunctioning boiler system among its problems.
“It is not an uncommon sight to walk down the hall without students having to walk around buckets that our collecting rainwater.
“Putting a Band-Aid on a severe wound that is bleeding profusely does not work.”
Philip Conti said the board must focus on the district’s $60 million debt service and the state’s reduced assistance.
“We cannot afford to assume any more debt,” said the former board member and retired educator. “Anyone who doesn’t understand that doesn’t understand fiscal responsibility.”
He added that although the board hasn’t raised taxes in at least seven years, New Castle has the highest taxes in Lawrence County.
“Where are you going to get the money to fund that debt? It’s going to have to come from the taxpayers,” he said.
“Debt is the most vicious form of taxation.”
Board member Mary Ann Tofel participated in the meeting through a conference call. Fred Mozzocio was out of town on a business-related trip.
plitowitz@ncnewsonline.com
New Castle’s school board agreed to wait on a consultant’s recommendation before deciding on an early learning center’s future.
In the only show of unity regarding the $19 million project, the board voted 8-0 last night to hire Education Management Group LLC for $3,700.
Superintendent George Gabriel requested that the board allow a third party provide an analysis on whether it’s best to maintain the district’s three primary centers or renovate Lockley Kindergarten Center into a facility for students in kindergarten through second grade. At Monday’s work session, four of the seven members requested a vote to reconsider the project.
Company representative Dr. Ronald Stainbrook, a retired state Department of Education official, will supervise the evaluation.
“He will identify educational advantages (and) disadvantages to keeping the three elementary facilities or closing them and operating a single new (and) renovated facility,” Gabriel said.
Stainbrook, who worked as the state’s director of schools, was part of a group that studied that district’s finances in the early 1990s.
“This is his expertise,” Gabriel said.
The report will be completed within 20 days of his visit to the district. Business manager Joseph Ambrosini said he will speak to Stainbrook today regarding his arrival date.
Except for a question seeking clarification, the board passed the measure without comment.
During the visitors’ portion of the meeting, a district kindergarten teacher and a former school board member offered different views on the project.
“(Lockley) has not changed to meet the demands of our earliest learners,” said Victoria Bober, who teaches at Lockley. “This is also true for our other existing primary centers.”
Bober said the kindergarten center lacks the basics to accommodate its 300 students. She cited a leaking roof and malfunctioning boiler system among its problems.
“It is not an uncommon sight to walk down the hall without students having to walk around buckets that our collecting rainwater.
“Putting a Band-Aid on a severe wound that is bleeding profusely does not work.”
Philip Conti said the board must focus on the district’s $60 million debt service and the state’s reduced assistance.
“We cannot afford to assume any more debt,” said the former board member and retired educator. “Anyone who doesn’t understand that doesn’t understand fiscal responsibility.”
He added that although the board hasn’t raised taxes in at least seven years, New Castle has the highest taxes in Lawrence County.
“Where are you going to get the money to fund that debt? It’s going to have to come from the taxpayers,” he said.
“Debt is the most vicious form of taxation.”
Board member Mary Ann Tofel participated in the meeting through a conference call. Fred Mozzocio was out of town on a business-related trip.
Tuesday, April 12, 2011
Corbett Effect: Board to reconsider renovation
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
The New Castle Area School Board is prepared to halt plans for an early learning center.
Gov. Tom Corbett’s proposed budget has some board members worrying how the district can operate with $3.3 million less in state subsidies while undertaking a $19 million renovation project.
Its fate is expected to be determined during tomorrow’s regular board meeting. Four of the seven board members want to reconsider the venture in response to Superintendent George Gabriel’s call for a vote of confidence.
“I think about everywhere I went — phone calls I received — people in the community are scared,” Anna Pascarella said at last night’s work session. “The ones who really want to be honest with us will say we probably should not move forward with this.
“If we do, we need to scale it down from $19 million.”
Pascarella was joined by Dr. Marilyn K. Berkely, Brad Olson and Barbara Razzano.
“Up to this point we had additional funding. Now we don’t,” Pascarella said later in the meeting. “That makes a big difference.”
J. Allan Joseph, Mark Kirkwood and Karen Humphrey said they want to continue with the project. Fred Mozzocio and Mary Ann Tofel were absent.
The development comes as Gabriel was prepared to release a video and unveil a website designed to promote and answer questions about the renovation.
“We did a very poor job of getting the word out,” the superintendent said.
The Harry W. Lockley Early Learning Center would bring students in kindergarten through second grade into one facility, located on the site of the Lockley Kindergarten Center. Third-graders are scheduled to move to the George Washington Intermediate Elementary School. The consolidation plan closes West Side, John F. Kennedy and Thaddeus Stevens primary centers.
“Whether you build the project or you can it, you still have $3.3 million you have to deal with,” Gabriel said. “Plus, if you can it, you have four old buildings you have to deal with.”
Business manager Joseph Ambrosini said the district will hold sessions next month as it prepares the 2011-2012 school year budget. The district also is in negotiations with its teachers union.
“We have made substantial cuts, but we just haven’t brought it to the (board) yet,” Gabriel said.
He added that district administrators and staff have been asked to provide input on trimming expenditures. The superintendent also noted “raising taxes is not on our radar.”
With a $12 million fund balance, Ambrosini said New Castle is “doing OK financially.”
He called the early learning center an opportunity to generate additional savings through reductions in staff and building costs.
“I’m the last person who would stand behind this building project if I didn’t think it was a good idea financially,” he said. “I would tell George that.
“Don’t lose sight of consolidating four buildings into one. That’s the difference.”
Olson asked what would happen if state funding continued to decline.
“Yes, we have a great fund balance right now,” he said. “We can make plans to adjust for this year’s $3.3 million loss. What if next year, it’s a $3.3 million loss additional and the following year is another $3.3 million.”
Gabriel said if that were the case then all of the state’s public school systems would eventually shut down.
“I guess we can all agree it’s not going to get any better,” Berkely said.
plitowitz@ncnewsonline.com
The New Castle Area School Board is prepared to halt plans for an early learning center.
Gov. Tom Corbett’s proposed budget has some board members worrying how the district can operate with $3.3 million less in state subsidies while undertaking a $19 million renovation project.
Its fate is expected to be determined during tomorrow’s regular board meeting. Four of the seven board members want to reconsider the venture in response to Superintendent George Gabriel’s call for a vote of confidence.
“I think about everywhere I went — phone calls I received — people in the community are scared,” Anna Pascarella said at last night’s work session. “The ones who really want to be honest with us will say we probably should not move forward with this.
“If we do, we need to scale it down from $19 million.”
Pascarella was joined by Dr. Marilyn K. Berkely, Brad Olson and Barbara Razzano.
“Up to this point we had additional funding. Now we don’t,” Pascarella said later in the meeting. “That makes a big difference.”
J. Allan Joseph, Mark Kirkwood and Karen Humphrey said they want to continue with the project. Fred Mozzocio and Mary Ann Tofel were absent.
The development comes as Gabriel was prepared to release a video and unveil a website designed to promote and answer questions about the renovation.
“We did a very poor job of getting the word out,” the superintendent said.
The Harry W. Lockley Early Learning Center would bring students in kindergarten through second grade into one facility, located on the site of the Lockley Kindergarten Center. Third-graders are scheduled to move to the George Washington Intermediate Elementary School. The consolidation plan closes West Side, John F. Kennedy and Thaddeus Stevens primary centers.
“Whether you build the project or you can it, you still have $3.3 million you have to deal with,” Gabriel said. “Plus, if you can it, you have four old buildings you have to deal with.”
Business manager Joseph Ambrosini said the district will hold sessions next month as it prepares the 2011-2012 school year budget. The district also is in negotiations with its teachers union.
“We have made substantial cuts, but we just haven’t brought it to the (board) yet,” Gabriel said.
He added that district administrators and staff have been asked to provide input on trimming expenditures. The superintendent also noted “raising taxes is not on our radar.”
With a $12 million fund balance, Ambrosini said New Castle is “doing OK financially.”
He called the early learning center an opportunity to generate additional savings through reductions in staff and building costs.
“I’m the last person who would stand behind this building project if I didn’t think it was a good idea financially,” he said. “I would tell George that.
“Don’t lose sight of consolidating four buildings into one. That’s the difference.”
Olson asked what would happen if state funding continued to decline.
“Yes, we have a great fund balance right now,” he said. “We can make plans to adjust for this year’s $3.3 million loss. What if next year, it’s a $3.3 million loss additional and the following year is another $3.3 million.”
Gabriel said if that were the case then all of the state’s public school systems would eventually shut down.
“I guess we can all agree it’s not going to get any better,” Berkely said.
Wednesday, April 6, 2011
Judge supports district in race case
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A federal court has dismissed a race discrimination lawsuit against the New Castle Area School District.
In a ruling issued Monday, U.S. District Judge Donetta W. Ambrose granted the district’s request for a summary judgment in its case with former student Joshua Stewart. Ambrose, citing a report prepared in February, ruled Stewart failed to prove that the district expelled him based on his race.
The lawsuit was an offshoot of the drug-related death of Erica Jo Million. The New Castle High sophomore consumed oxycodone Feb. 27, 2007, while in school. The 16-year-old died five days later.
Her death was ruled accidental.
A month later, the school board voted 7-0 to expel Stewart for violating the school’s drug policy in distributing and selling a controlled substance to Million. The board’s decision was later upheld in Lawrence County common pleas court.
Stewart was placed on juvenile probation in April 2008. Common pleas Judge John Hodge said the evidence against the teen supported a juvenile charge of possession with intent to deliver.
Stewart’s attorney, Keenan D. Holmes, argued his client’s punishment was excessive when compared to white students who had committed similar offenses. Attempts to reach Holmes were unsuccessful.
The report, authored by U.S. Magistrate Judge Robert C. Mitchell, said Stewart could not prove the school district’s investigation was biased.
“(New Castle) had evidence that the plaintiff violated its Drug and Alcohol Policy,” Mitchell wrote.
The federal Office for Civil Rights had determined in October 2007 that Stewart “did not provide a sufficient factual basis to support his claim that he was treated differently than (white students).”
plitowitz@ncnewsonline.com
A federal court has dismissed a race discrimination lawsuit against the New Castle Area School District.
In a ruling issued Monday, U.S. District Judge Donetta W. Ambrose granted the district’s request for a summary judgment in its case with former student Joshua Stewart. Ambrose, citing a report prepared in February, ruled Stewart failed to prove that the district expelled him based on his race.
The lawsuit was an offshoot of the drug-related death of Erica Jo Million. The New Castle High sophomore consumed oxycodone Feb. 27, 2007, while in school. The 16-year-old died five days later.
Her death was ruled accidental.
A month later, the school board voted 7-0 to expel Stewart for violating the school’s drug policy in distributing and selling a controlled substance to Million. The board’s decision was later upheld in Lawrence County common pleas court.
Stewart was placed on juvenile probation in April 2008. Common pleas Judge John Hodge said the evidence against the teen supported a juvenile charge of possession with intent to deliver.
Stewart’s attorney, Keenan D. Holmes, argued his client’s punishment was excessive when compared to white students who had committed similar offenses. Attempts to reach Holmes were unsuccessful.
The report, authored by U.S. Magistrate Judge Robert C. Mitchell, said Stewart could not prove the school district’s investigation was biased.
“(New Castle) had evidence that the plaintiff violated its Drug and Alcohol Policy,” Mitchell wrote.
The federal Office for Civil Rights had determined in October 2007 that Stewart “did not provide a sufficient factual basis to support his claim that he was treated differently than (white students).”
Tuesday, March 29, 2011
Wednesday, March 23, 2011
DeRosa judge sends message
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
PITTSBURGH — A judge showed little sympathy toward Nicholas DeRosa for his role in the Affordable Housing mortgage scandal.
However, U.S. District Judge Gustave Diamond made one concession. The retired New Castle educator and former city councilman could be housed in a federal prison close to home — if accommodations were available.
Diamond rebuffed defense attorney Efrem M. Grail’s request for a reduced sentence yesterday afternoon when he ordered that DeRosa spend 41 months in prison, pay approximately $312,000 in restitution and serve three years of supervised release.
“It’s appropriate to send an important message to officials who want to line their pockets,” Diamond said. “Hopefully, this will deter other public officials from engaging in similar conduct.
“The sentence is one that should protect the public from the defendant.”
The U.S. Attorney’s Office targeted the North Cascade Street resident as the leader of a scheme to sell handpicked structures to a nonprofit agency at inflated prices. DeRosa owned or co-owned four of the seven properties.
Affordable Housing of Lawrence County obtained a $250,000 loan in December 2005 for the purchases. Within three months, the agency declared itself insolvent with debts nearing a half-million dollars.
DeRosa, indicted by a federal grand jury, originally pleaded not guilty to felony counts of bank fraud, mail fraud and money laundering conspiracy. Prosecutors filed the charges in July 2009. He changed his plea last October.
DELAY
Prior to sentencing, DeRosa forced a 20-minute delay when he attempted to withdraw his plea agreement.
“The motion he has made today is his,” Grail said. “With respect to this matter, I have a conflict.”
DeRosa said he struggled with admitting guilt.
“I can’t change my (original) plea for things I didn’t do,” he said.
However, he was concerned for his family, which includes two grandchildren.
“I tried to stop the suffering of the family. That was really the reason I changed my plea (in October).
“Since that day I haven’t been right. I haven’t had a good night’s sleep since I signed my plea. I should have never signed those papers.”
DeRosa then claimed he did not write the Feb. 22 letter to Diamond in which he professed his guilt. He stated Grail’s office produced the correspondence.
“I didn’t know I had to write a letter. I glanced at it. It looked all right to me.”
DeRosa acknowledged he had signed the letter.
“I would have never called myself a convict. I would have never said I was broke.”
Diamond then responded.
“You have a master’s degree in education?”
DeRosa answered yes.
“You sent this letter to me. Where did you think this letter was going?”
To approve DeRosa’s motion, Diamond said he had to consider three issues: DeRosa’s assertion of innocence; a valid reason; and show the government’s case would not be prejudiced by the action.
“You have not even come close,” the judge said. “On the contrary, the evidence is very strong against you in this case.”
He later commented, “I’ve not heard an assertion of innocence yet. Are you denying your guilt in this case?”
DeRosa didn’t directly answer.
The judge then denied the change of plea request.
With the hearing under way, Grail portrayed DeRosa as a proud and kind man who spent his life helping his community.
“The government would have the court believe Mr. DeRosa is the worst criminal in the last 15 years,” he continued. “Mr. DeRosa admitted to taking $12,500.
“(He’s an) aging 65-year-old struggling to understand the events around him.”
Grail pointed to co-conspirators Gary Felasco, Robert Ratkovich and Donald “Ducky” Conti as the men responsible for the fraud.
“Mr. DeRosa wasn’t a member of this board. He didn’t make decisions.”
Conti, who received immunity from prosecution, served on the Lawrence County Housing Authority and Affordable Housing boards.
A convicted former county treasurer, Felasco had been the housing authority chairman. Ratkovich was Affordable Housing’s consultant and oversaw the housing authority’s maintenance department. They received reduced sentences for their cooperation.
Grail said DeRosa made another mistake he didn’t disclose to the court.
“He spent his time with people who did bad things.”
POWER
Assistant U.S. Attorney Brendan T. Conway said Felasco, Ratkovich and Conti produced evidence that DeRosa was a man of enormous power.
“He was the power broker and behind-the-scenes person to make things happen,” he said.
Before sentencing, Diamond briefly discussed the letters he received related to the case. DeRosa’s backers spoke of his good works, while foes detailed an unflattering portrait.
“They virtually cancel themselves out,” he said.
At Grail’s urging, unsigned letters were removed from court documents.
Diamond cited the seriousness of the crime in denying a reduced sentence.
“The fact an individual has a clean record does not give him a free, one shot (to commit a crime),” he said. “That message should be conveyed.”
Along with the 41-month prison term, Diamond ordered DeRosa to repay $224,000 to First Commonwealth and $88,000 to Affordable Housing. With the nonprofit operation no longer in operation, it is uncertain if the housing authority would receive the funds. The authority created Affordable Housing in 2003 using $200,000 in federal funds.
An attempt to reach the U.S. Attorney’s Office for clarification was unsuccessful.
The U.S. Department of Housing and Urban Development, which funds the housing authority, has consistently declined to discuss the case.
Diamond said the government may take 10 percent of DeRosa’s $8,000 monthly pension for repayment. Conway had asked for a higher amount. The judge also declined to assess a fine.
DeRosa, who has 10 days to appeal Diamond’s sentence, was given until noon May 19 to report to the U.S. Marshals Service. He remains free on an unsecured $10,000 bond.
“The prison time received by Mr. DeRosa should serve as a strong warning that tough punishment awaits those who embark on a similar criminal path,” said Thomas Jankowski, special agent in charge, IRS-Criminal Investigation, Pittsburgh field office.
The IRS-Criminal Investigation unit is part of the Mortgage Fraud Task Force that investigated DeRosa.
plitowitz@ncnewsonline.com
PITTSBURGH — A judge showed little sympathy toward Nicholas DeRosa for his role in the Affordable Housing mortgage scandal.
However, U.S. District Judge Gustave Diamond made one concession. The retired New Castle educator and former city councilman could be housed in a federal prison close to home — if accommodations were available.
Diamond rebuffed defense attorney Efrem M. Grail’s request for a reduced sentence yesterday afternoon when he ordered that DeRosa spend 41 months in prison, pay approximately $312,000 in restitution and serve three years of supervised release.
“It’s appropriate to send an important message to officials who want to line their pockets,” Diamond said. “Hopefully, this will deter other public officials from engaging in similar conduct.
“The sentence is one that should protect the public from the defendant.”
The U.S. Attorney’s Office targeted the North Cascade Street resident as the leader of a scheme to sell handpicked structures to a nonprofit agency at inflated prices. DeRosa owned or co-owned four of the seven properties.
Affordable Housing of Lawrence County obtained a $250,000 loan in December 2005 for the purchases. Within three months, the agency declared itself insolvent with debts nearing a half-million dollars.
DeRosa, indicted by a federal grand jury, originally pleaded not guilty to felony counts of bank fraud, mail fraud and money laundering conspiracy. Prosecutors filed the charges in July 2009. He changed his plea last October.
DELAY
Prior to sentencing, DeRosa forced a 20-minute delay when he attempted to withdraw his plea agreement.
“The motion he has made today is his,” Grail said. “With respect to this matter, I have a conflict.”
DeRosa said he struggled with admitting guilt.
“I can’t change my (original) plea for things I didn’t do,” he said.
However, he was concerned for his family, which includes two grandchildren.
“I tried to stop the suffering of the family. That was really the reason I changed my plea (in October).
“Since that day I haven’t been right. I haven’t had a good night’s sleep since I signed my plea. I should have never signed those papers.”
DeRosa then claimed he did not write the Feb. 22 letter to Diamond in which he professed his guilt. He stated Grail’s office produced the correspondence.
“I didn’t know I had to write a letter. I glanced at it. It looked all right to me.”
DeRosa acknowledged he had signed the letter.
“I would have never called myself a convict. I would have never said I was broke.”
Diamond then responded.
“You have a master’s degree in education?”
DeRosa answered yes.
“You sent this letter to me. Where did you think this letter was going?”
To approve DeRosa’s motion, Diamond said he had to consider three issues: DeRosa’s assertion of innocence; a valid reason; and show the government’s case would not be prejudiced by the action.
“You have not even come close,” the judge said. “On the contrary, the evidence is very strong against you in this case.”
He later commented, “I’ve not heard an assertion of innocence yet. Are you denying your guilt in this case?”
DeRosa didn’t directly answer.
The judge then denied the change of plea request.
With the hearing under way, Grail portrayed DeRosa as a proud and kind man who spent his life helping his community.
“The government would have the court believe Mr. DeRosa is the worst criminal in the last 15 years,” he continued. “Mr. DeRosa admitted to taking $12,500.
“(He’s an) aging 65-year-old struggling to understand the events around him.”
Grail pointed to co-conspirators Gary Felasco, Robert Ratkovich and Donald “Ducky” Conti as the men responsible for the fraud.
“Mr. DeRosa wasn’t a member of this board. He didn’t make decisions.”
Conti, who received immunity from prosecution, served on the Lawrence County Housing Authority and Affordable Housing boards.
A convicted former county treasurer, Felasco had been the housing authority chairman. Ratkovich was Affordable Housing’s consultant and oversaw the housing authority’s maintenance department. They received reduced sentences for their cooperation.
Grail said DeRosa made another mistake he didn’t disclose to the court.
“He spent his time with people who did bad things.”
POWER
Assistant U.S. Attorney Brendan T. Conway said Felasco, Ratkovich and Conti produced evidence that DeRosa was a man of enormous power.
“He was the power broker and behind-the-scenes person to make things happen,” he said.
Before sentencing, Diamond briefly discussed the letters he received related to the case. DeRosa’s backers spoke of his good works, while foes detailed an unflattering portrait.
“They virtually cancel themselves out,” he said.
At Grail’s urging, unsigned letters were removed from court documents.
Diamond cited the seriousness of the crime in denying a reduced sentence.
“The fact an individual has a clean record does not give him a free, one shot (to commit a crime),” he said. “That message should be conveyed.”
Along with the 41-month prison term, Diamond ordered DeRosa to repay $224,000 to First Commonwealth and $88,000 to Affordable Housing. With the nonprofit operation no longer in operation, it is uncertain if the housing authority would receive the funds. The authority created Affordable Housing in 2003 using $200,000 in federal funds.
An attempt to reach the U.S. Attorney’s Office for clarification was unsuccessful.
The U.S. Department of Housing and Urban Development, which funds the housing authority, has consistently declined to discuss the case.
Diamond said the government may take 10 percent of DeRosa’s $8,000 monthly pension for repayment. Conway had asked for a higher amount. The judge also declined to assess a fine.
DeRosa, who has 10 days to appeal Diamond’s sentence, was given until noon May 19 to report to the U.S. Marshals Service. He remains free on an unsecured $10,000 bond.
“The prison time received by Mr. DeRosa should serve as a strong warning that tough punishment awaits those who embark on a similar criminal path,” said Thomas Jankowski, special agent in charge, IRS-Criminal Investigation, Pittsburgh field office.
The IRS-Criminal Investigation unit is part of the Mortgage Fraud Task Force that investigated DeRosa.
Monday, March 21, 2011
DeRosa letters keep on coming
By PATRICK E. LITOWITZ
New Castle News
Nicholas DeRosa’s backers and detractors continue their letter campaigns as the retired educator prepares to be sentenced for mortgage fraud.
Federal prosecutors and DeRosa’s defense team submitted 10 letters Friday to U.S. District Judge Gustave Diamond. The New Castle resident will be appear at 10 a.m. Tuesday in Pittsburgh federal court.
In a deal accepted on Oct. 29, 2010, DeRosa pleaded guilty to felony counts of bank fraud, mail fraud and conspiracy to commit money laundering. As his court date approached, the retired city educator attempted to minimize his role in the scheme that caused Affordable Housing of Lawrence County to default on a $250,000 loan from First Commonwealth Bank.
Family members, friends, city school district administrators, Slippery Rock University officials and other associates offered support to DeRosa through letters.
Publication of the correspondences generated criticism from city residents, who attacked DeRosa and those backing him. The latest letters, including one from a district principal and a former school board member, highlight DeRosa’s divisive nature.
Mark Elisco, principal of the George Washington Intermediate Elementary, said he worked with DeRosa as an educator and on city council.
“Without question, Nick has been one of the most influential forces for the common good in my professional life,” he wrote on personal stationery.
“I learned from Nick how to squeeze dollars out of tight municipal budgets for low-income budgets to use for recreational facilities for kids to use as athletics, arts and crafts, and free lunches throughout many summers.
In her letter to prosecutors, former board member Andrea Przybylski turned in a state audit of school operations, dated July 2003.
The state Department of the Auditor General’s report focused on DeRosa’s travel practices, financial interests, reimbursements and food purchases made from the district.
“DeRosa’s actions in the HUD scandal were not a result in a lapse of judgment, but a pattern of behavior which included abuses of his position, as assistant superintendent, at the cost of taxpayers and students,” she wrote.
“As a former board member, I witnessed his significant influence in a system plagued by nepotism, favoritism and questionable practices.”
Edward L. Van Dusen, another city resident called for jail time.
“People get sent to jail for stealing $50 from Walmart or Uni-Mart, usually because they are poor or need drug money,” he wrote. “Here we have an intelligent, well-paid college graduate who does not have to steal to put food on his table conspire to steal from the U.S. government.”
In her support of DeRosa, city resident Amy DiMuccio rejected a New Castle News editorial that suggested people backing the former educator didn’t represent the views of most city and county residents.
“(What) I don’t understand is why the New Castle News felt compelled to print articles that question the motives of those who support Mr. DeRosa and encourage people to write to (the U.S. Attorney) and give you “ammunition” to use against Mr. DeRosa.”
An 86-year-old woman from DeRosa’s Croton neighborhood expressed her anger with his supporters.
“We’re from a little town in New Castle, Pa., or ‘Little Italy,’" she wrote. “With Mr. DeRosa … if you are Italian you are ‘in.’ Many people (if you were Italian and especially if you had the Dolly Parton look) got jobs with his help.
“No doubt the judge will rule in his favor and he will avoid jail time and receive probation only.”
New Castle News
Nicholas DeRosa’s backers and detractors continue their letter campaigns as the retired educator prepares to be sentenced for mortgage fraud.
Federal prosecutors and DeRosa’s defense team submitted 10 letters Friday to U.S. District Judge Gustave Diamond. The New Castle resident will be appear at 10 a.m. Tuesday in Pittsburgh federal court.
In a deal accepted on Oct. 29, 2010, DeRosa pleaded guilty to felony counts of bank fraud, mail fraud and conspiracy to commit money laundering. As his court date approached, the retired city educator attempted to minimize his role in the scheme that caused Affordable Housing of Lawrence County to default on a $250,000 loan from First Commonwealth Bank.
Family members, friends, city school district administrators, Slippery Rock University officials and other associates offered support to DeRosa through letters.
Publication of the correspondences generated criticism from city residents, who attacked DeRosa and those backing him. The latest letters, including one from a district principal and a former school board member, highlight DeRosa’s divisive nature.
Mark Elisco, principal of the George Washington Intermediate Elementary, said he worked with DeRosa as an educator and on city council.
“Without question, Nick has been one of the most influential forces for the common good in my professional life,” he wrote on personal stationery.
“I learned from Nick how to squeeze dollars out of tight municipal budgets for low-income budgets to use for recreational facilities for kids to use as athletics, arts and crafts, and free lunches throughout many summers.
In her letter to prosecutors, former board member Andrea Przybylski turned in a state audit of school operations, dated July 2003.
The state Department of the Auditor General’s report focused on DeRosa’s travel practices, financial interests, reimbursements and food purchases made from the district.
“DeRosa’s actions in the HUD scandal were not a result in a lapse of judgment, but a pattern of behavior which included abuses of his position, as assistant superintendent, at the cost of taxpayers and students,” she wrote.
“As a former board member, I witnessed his significant influence in a system plagued by nepotism, favoritism and questionable practices.”
Edward L. Van Dusen, another city resident called for jail time.
“People get sent to jail for stealing $50 from Walmart or Uni-Mart, usually because they are poor or need drug money,” he wrote. “Here we have an intelligent, well-paid college graduate who does not have to steal to put food on his table conspire to steal from the U.S. government.”
In her support of DeRosa, city resident Amy DiMuccio rejected a New Castle News editorial that suggested people backing the former educator didn’t represent the views of most city and county residents.
“(What) I don’t understand is why the New Castle News felt compelled to print articles that question the motives of those who support Mr. DeRosa and encourage people to write to (the U.S. Attorney) and give you “ammunition” to use against Mr. DeRosa.”
An 86-year-old woman from DeRosa’s Croton neighborhood expressed her anger with his supporters.
“We’re from a little town in New Castle, Pa., or ‘Little Italy,’" she wrote. “With Mr. DeRosa … if you are Italian you are ‘in.’ Many people (if you were Italian and especially if you had the Dolly Parton look) got jobs with his help.
“No doubt the judge will rule in his favor and he will avoid jail time and receive probation only.”
Thursday, March 17, 2011
Candidates critical of city board and Gabriel
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Two school board candidates showered New Castle’s superintendent with criticism last night.
Board member Dr. Marilyn K. Berkely later joined John B. Rossi and Lynne Ryan in faulting George Gabriel’s professional and personal judgment. The comments came during the board’s regular meeting.
Complaints ranged from fiscal responsibility and the early learning center to district letterhead and open records compliance.
Rossi said Gabriel and the board failed to heed an ad-hoc committee’s recommendation against the creation of a $19 million early learning center on the Harry W. Lockley Kindergarten Center site.
“There was an uncertainty in the air and at those meetings regarding the financial future of the district’s state and federal subsidies,” the East Lutton Street resident said.
“We can see the committee was point on with our concerns in light of the recent development of Gov. (Tom) Corbett’s proposed educational budget.”
Gabriel said declining financial resources and student enrollment require the district consolidate its resources.
“This is very little financial benefit by abandoning the Lockley project in favor of the status quo. All of our district primary buildings are in need of comprehensive upgrades.”
APPROVED
The board originally rejected a $31 million renovation of George Washington Intermediate Elementary School and the creation of a kindergarten-through-second-grade facility.
When the district qualified for a $15 million, no-interest federal loan, the project’s scope was scaled. The Lockley renovation was approved in June 2010.
Rossi also related to the board that a letter appearing in The News, which called for change on the board, offended Gabriel.
“I did not mean for us to do away (with) all the good things that have been accomplished and continue to be accomplished in this district,” Rossi said of the exchange that occurred at a boys basketball game.
“Rather, the change that I hope for is the change in the ‘business-as-usual’ mentality that operates with many on this board as well as a change of faces on the board so that others can come forward to share their time and their talents for this district.”
Gabriel said he had asked Rossi for clarification.
“I see all the good things going on in this district,” the superintendent said. “When I asked you, ‘John, what change are you talking about?’ ... And I’m going to quote you. ‘Faces. Faces.’ That wasn’t an adequate answer.”
Rossi cited the early learning center and the 2007 sale of the former Ben Franklin Junior High as two examples of business as usual.
“I don’t know what went into (the sale of Ben Franklin),” he said.
“You’re admitting you don’t know what went into that,” Gabriel responded.
“Right.”
“But you want changes based on that.”
“Right.”
CHASTISE
Ryan, who lives on Highland Avenue, chastised the administration’s response to the open records request involving the city’s youth football program. Board member Barbara Razzano is suing the district for the organization’s records.
Ryan said the district provided a new batch of bank records from Huntington Bank on March 9. The records belong to board member Mark Kirkwood, who had assisted Red Hurricane head coach Frank Bongivengo in running operations for one season.
“I’m curious when you sought to obtain these documents,” she said. “Contrary to what you might believe, there is a slew of parents behind this that are very upset.”
Like Rossi, she said the district could not afford an early learning center. Her complaints extended to the delayed posting of records on the school system’s website and the district’s committee policy.
“If this district’s goal is to make a difference in the lives of our students, I think we can do a little bit better and make a little bit more positive influence and example,” she said. “Hopefully, we can protect the taxpayers’ money a little bit more prudently.”
DeROSA
Berkely then discussed former administrator Nicholas DeRosa, who pleaded guilty to federal charges involving mortgage fraud. Gabriel, business manager Joseph Ambrosini and Principal Debra A. DeBlasio each sent letters on DeRosa’s behalf to the federal judge hearing the case. District letterhead had been used in the correspondences.
“I would like to take this opportunity to state publicly that the opinions of our recent administrators regarding Mr. DeRosa are not shared by this board member,” she said. “In my view, it was a mistake to place personal opinions on official stationary ...
“We need to be ever mindful of the image we present to our students and our community.”
Gabriel said DeRosa has been a friend of 40 years.
“I am not here to defend him. I didn’t defend his actions in that letter and merely stated (my) opinion.
“Did I make a bad judgment using letterhead? You can say ‘Yes,’ but even at that it’s a weak argument. I never represented anyone on this board or in this community.”
plitowitz@ncnewsonline.com
Two school board candidates showered New Castle’s superintendent with criticism last night.
Board member Dr. Marilyn K. Berkely later joined John B. Rossi and Lynne Ryan in faulting George Gabriel’s professional and personal judgment. The comments came during the board’s regular meeting.
Complaints ranged from fiscal responsibility and the early learning center to district letterhead and open records compliance.
Rossi said Gabriel and the board failed to heed an ad-hoc committee’s recommendation against the creation of a $19 million early learning center on the Harry W. Lockley Kindergarten Center site.
“There was an uncertainty in the air and at those meetings regarding the financial future of the district’s state and federal subsidies,” the East Lutton Street resident said.
“We can see the committee was point on with our concerns in light of the recent development of Gov. (Tom) Corbett’s proposed educational budget.”
Gabriel said declining financial resources and student enrollment require the district consolidate its resources.
“This is very little financial benefit by abandoning the Lockley project in favor of the status quo. All of our district primary buildings are in need of comprehensive upgrades.”
APPROVED
The board originally rejected a $31 million renovation of George Washington Intermediate Elementary School and the creation of a kindergarten-through-second-grade facility.
When the district qualified for a $15 million, no-interest federal loan, the project’s scope was scaled. The Lockley renovation was approved in June 2010.
Rossi also related to the board that a letter appearing in The News, which called for change on the board, offended Gabriel.
“I did not mean for us to do away (with) all the good things that have been accomplished and continue to be accomplished in this district,” Rossi said of the exchange that occurred at a boys basketball game.
“Rather, the change that I hope for is the change in the ‘business-as-usual’ mentality that operates with many on this board as well as a change of faces on the board so that others can come forward to share their time and their talents for this district.”
Gabriel said he had asked Rossi for clarification.
“I see all the good things going on in this district,” the superintendent said. “When I asked you, ‘John, what change are you talking about?’ ... And I’m going to quote you. ‘Faces. Faces.’ That wasn’t an adequate answer.”
Rossi cited the early learning center and the 2007 sale of the former Ben Franklin Junior High as two examples of business as usual.
“I don’t know what went into (the sale of Ben Franklin),” he said.
“You’re admitting you don’t know what went into that,” Gabriel responded.
“Right.”
“But you want changes based on that.”
“Right.”
CHASTISE
Ryan, who lives on Highland Avenue, chastised the administration’s response to the open records request involving the city’s youth football program. Board member Barbara Razzano is suing the district for the organization’s records.
Ryan said the district provided a new batch of bank records from Huntington Bank on March 9. The records belong to board member Mark Kirkwood, who had assisted Red Hurricane head coach Frank Bongivengo in running operations for one season.
“I’m curious when you sought to obtain these documents,” she said. “Contrary to what you might believe, there is a slew of parents behind this that are very upset.”
Like Rossi, she said the district could not afford an early learning center. Her complaints extended to the delayed posting of records on the school system’s website and the district’s committee policy.
“If this district’s goal is to make a difference in the lives of our students, I think we can do a little bit better and make a little bit more positive influence and example,” she said. “Hopefully, we can protect the taxpayers’ money a little bit more prudently.”
DeROSA
Berkely then discussed former administrator Nicholas DeRosa, who pleaded guilty to federal charges involving mortgage fraud. Gabriel, business manager Joseph Ambrosini and Principal Debra A. DeBlasio each sent letters on DeRosa’s behalf to the federal judge hearing the case. District letterhead had been used in the correspondences.
“I would like to take this opportunity to state publicly that the opinions of our recent administrators regarding Mr. DeRosa are not shared by this board member,” she said. “In my view, it was a mistake to place personal opinions on official stationary ...
“We need to be ever mindful of the image we present to our students and our community.”
Gabriel said DeRosa has been a friend of 40 years.
“I am not here to defend him. I didn’t defend his actions in that letter and merely stated (my) opinion.
“Did I make a bad judgment using letterhead? You can say ‘Yes,’ but even at that it’s a weak argument. I never represented anyone on this board or in this community.”
Wednesday, March 16, 2011
Missing money may affect scholarship awards
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Pennsylvania State Police are investigating the theft of funds earmarked for scholarships.
The Lawrence County School Counselors Association contacted state police about the loss of approximately $3,300. Michele McClelland, president of the nonprofit group, said the money was taken during a two-year period.
“Our whole goal is to reclaim the money and to give it back to the students for scholarships,” said McClelland, a counselor at Laurel Junior-Senior High.
The association, which has close to 30 members, includes school counselors from the county’s eight school districts and the Lawrence County Career and Technical Center. The group provides monthly network and professional development opportunities.
The organization’s lone fundraiser is an annual college/career fair held in September at Westminster College. Postsecondary institutions pay a fee to appear at the event.
McClelland said the group uses the funds to award scholarships in May to two seniors from each school district and the career center. “We don’t make any money,” she said.
State police said a 62-year-old woman, who was not named, is a suspect in its investigation. Police said she received $3,355 in checks and failed to forward them to the group’s treasurer. The money was reportedly placed into her personal bank account.
McClelland said the woman is not affiliated with the association. She was hired to provide minor clerical support during the fundraiser.
McClelland said the group had enough money last year to give out scholarships.
“We’re concerned about this year,” she said.
plitowitz@ncnewsonline.com
Pennsylvania State Police are investigating the theft of funds earmarked for scholarships.
The Lawrence County School Counselors Association contacted state police about the loss of approximately $3,300. Michele McClelland, president of the nonprofit group, said the money was taken during a two-year period.
“Our whole goal is to reclaim the money and to give it back to the students for scholarships,” said McClelland, a counselor at Laurel Junior-Senior High.
The association, which has close to 30 members, includes school counselors from the county’s eight school districts and the Lawrence County Career and Technical Center. The group provides monthly network and professional development opportunities.
The organization’s lone fundraiser is an annual college/career fair held in September at Westminster College. Postsecondary institutions pay a fee to appear at the event.
McClelland said the group uses the funds to award scholarships in May to two seniors from each school district and the career center. “We don’t make any money,” she said.
State police said a 62-year-old woman, who was not named, is a suspect in its investigation. Police said she received $3,355 in checks and failed to forward them to the group’s treasurer. The money was reportedly placed into her personal bank account.
McClelland said the woman is not affiliated with the association. She was hired to provide minor clerical support during the fundraiser.
McClelland said the group had enough money last year to give out scholarships.
“We’re concerned about this year,” she said.
Tuesday, March 15, 2011
Judge unmoved by pleas of DeRosa
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Nicholas DeRosa’s role in a Lawrence County mortgage fraud is not subject to revision.
To the U.S. Attorney’s Office, he was “an influential behind-the-scenes power broker” and “used his authority in the New Castle and Lawrence County communities to line his pockets and finance a gambling habit.”
A federal judge and prosecutors each addressed DeRosa’s effort to seek a reduced sentence on felony counts of bank fraud, mail fraud and conspiracy to commit money laundering.
The New Castle resident, scheduled to be sentenced at 10 a.m. March 22, attempted to minimize his role in the scheme that caused Affordable Housing of Lawrence County to default on a $250,000 loan from First Commonwealth Bank. The loss included an additional $200,000 from the Lawrence County Housing Authority, which created the nonprofit housing agency.
Reviewing the U.S. Probation Office’s report, District Judge Gustave Diamond said DeRosa’s objections would not affect the sentencing guidelines. He noted the parties agreed to the facts associated with the case.
“Accordingly, the court will adopt herein the description of defendant’s offense conduct as set forth in the written factual basis.”
DeRosa sent a letter to Diamond in late February. He accepted responsibility for his actions but attached conditions to his guilt. The retired educator claimed he took kickbacks from two friends and that others were responsible for carrying out the fraud.
He also included letters of support from Slippery Rock University’s president and trustees; former and current New Castle school district administrators; a former common pleas judge; and union leaders.
The action upset federal prosecutors, who sought a continuance to respond to DeRosa’s request.
“The investigation revealed that DeRosa and his co-conspirators duped Affordable Housing into purchasing (seven) properties and First Commonwealth into lending Affordable Housing the majority of the money needed to make the purchases,” wrote Assistant U.S. Attorney Brendan T. Conway.
Conway said testimony from co-conspirators Donald “Ducky” Conti, Gary Felasco and Robert Ratkovich pointed to DeRosa as the group’s ringleader. Conti, who served on the housing authority and Affordable Housing boards, was granted immunity for his cooperation.
Felasco is a convicted former county treasurer and one-time housing authority chairman, while Ratkovich was Affordable Housing’s consultant and had run the housing authority’s maintenance department. They received reduced sentences.
The government also produced 18 letters, eight of them unsigned, calling for DeRosa’s punishment.
“I have been a resident of Lawrence County for most of my life and have seen a lot of criminal activity with regards to politics,” Ed Urian wrote. “This is only the tip of the iceberg. Please throw the book at this man if for nothing more than making an example for the rest of the local politicians to take heed.”
DeRosa faces up to 46 months in prison. Diamond said DeRosa is required to make restitution of approximately $344,000. Citing his $100,000 annual pension, the government is also seeking a fine that could range from $7,500 to $1 million.
“He also owns a nice home and a condominium in Florida,” Conway wrote. “He is therefore more than capable of making payments on both the restitution obligation and a fine.
“A fine would further the goals of sentencing and at least partially cover the enormous expenses associated with this prosecution.”
plitowitz@ncnewsonline.com
Nicholas DeRosa’s role in a Lawrence County mortgage fraud is not subject to revision.
To the U.S. Attorney’s Office, he was “an influential behind-the-scenes power broker” and “used his authority in the New Castle and Lawrence County communities to line his pockets and finance a gambling habit.”
A federal judge and prosecutors each addressed DeRosa’s effort to seek a reduced sentence on felony counts of bank fraud, mail fraud and conspiracy to commit money laundering.
The New Castle resident, scheduled to be sentenced at 10 a.m. March 22, attempted to minimize his role in the scheme that caused Affordable Housing of Lawrence County to default on a $250,000 loan from First Commonwealth Bank. The loss included an additional $200,000 from the Lawrence County Housing Authority, which created the nonprofit housing agency.
Reviewing the U.S. Probation Office’s report, District Judge Gustave Diamond said DeRosa’s objections would not affect the sentencing guidelines. He noted the parties agreed to the facts associated with the case.
“Accordingly, the court will adopt herein the description of defendant’s offense conduct as set forth in the written factual basis.”
DeRosa sent a letter to Diamond in late February. He accepted responsibility for his actions but attached conditions to his guilt. The retired educator claimed he took kickbacks from two friends and that others were responsible for carrying out the fraud.
He also included letters of support from Slippery Rock University’s president and trustees; former and current New Castle school district administrators; a former common pleas judge; and union leaders.
The action upset federal prosecutors, who sought a continuance to respond to DeRosa’s request.
“The investigation revealed that DeRosa and his co-conspirators duped Affordable Housing into purchasing (seven) properties and First Commonwealth into lending Affordable Housing the majority of the money needed to make the purchases,” wrote Assistant U.S. Attorney Brendan T. Conway.
Conway said testimony from co-conspirators Donald “Ducky” Conti, Gary Felasco and Robert Ratkovich pointed to DeRosa as the group’s ringleader. Conti, who served on the housing authority and Affordable Housing boards, was granted immunity for his cooperation.
Felasco is a convicted former county treasurer and one-time housing authority chairman, while Ratkovich was Affordable Housing’s consultant and had run the housing authority’s maintenance department. They received reduced sentences.
The government also produced 18 letters, eight of them unsigned, calling for DeRosa’s punishment.
“I have been a resident of Lawrence County for most of my life and have seen a lot of criminal activity with regards to politics,” Ed Urian wrote. “This is only the tip of the iceberg. Please throw the book at this man if for nothing more than making an example for the rest of the local politicians to take heed.”
DeRosa faces up to 46 months in prison. Diamond said DeRosa is required to make restitution of approximately $344,000. Citing his $100,000 annual pension, the government is also seeking a fine that could range from $7,500 to $1 million.
“He also owns a nice home and a condominium in Florida,” Conway wrote. “He is therefore more than capable of making payments on both the restitution obligation and a fine.
“A fine would further the goals of sentencing and at least partially cover the enormous expenses associated with this prosecution.”
Saturday, March 12, 2011
Police raid Ellwood meth lab
By LISA MICCO
and PATRICK E. LITOWITZ
lmicco@ncnewsonline.com
plitowitz@ncnewsonline.com
The noxious fumes hit Andy Petyak as he entered the Ellwood City home yesterday afternoon.
Seeing two preschoolers inside made the former federal drug agent sick.
Led by the borough police department, authorities shut down a moving methamphetamine lab. Arrested were William Justin Perrine, 40, and Frank Demaro, no age provided, at 418 Ninth St. Perrine faces felony and misdemeanor drug charges. Demaro, held on a state parole detainer, is awaiting charges.
Lawrence County District Attorney Joshua Lamancusa said the raid was the result of a two-week investigation involving a meth lab that moved between Beaver and Lawrence counties.
“We identified a couple of the targets, and we then conducted an operation last week,” he said. “We ended up raiding a house over in Beaver.
“We hit a lab and realized that based on the information ... there was potentially another lab being run in Lawrence County.”
He credited the cooperation of the borough’s police, fire department and Mayor Tony Court, along with Pennsylvania State Police, New Castle police and the Lawrence County Drug Task Force.
“The chiefs of police of Ellwood and New Castle have just given us free reign to do whatever we can to assist them, and their guys are constantly out there,” Lamancusa said of the joint effort. “It’s extremely difficult and dangerous. Today was a good day for law enforcement and the community of Ellwood.
“We want to send the message that we do not want meth coming into our community.”
He also commended New Castle’s full-time narcotics unit.
“They are one of the major players in our drug task force. They are essentially our backbone.”
Police went to the home at 4 p.m. to serve an arrest warrant to Perrine, who is also known as “The Sandman.” A woman met officers at the door and ran in the opposite direction, screaming Perrine’s name. When police and Petyak went inside, they quickly determined that a meth lab was in operation.
“I’ve been doing this so long that as soon as I crossed the threshold of the door, I smelled it,” Petyak said, referring to the solvents used in the drug’s production. “I knew exactly what was in there.”
As they secured the residence, several officers headed to the basement. One of them noticed an unusual wall construction with a shelf in front of it. Once removed, an entry to a secret room was uncovered. Inside were Perrine and Demaro, along with chemicals used to make meth.
Petyak, who is director of the local task force, said the pair reportedly used the “boxed meth lab” method.
“They completed their process and put everything back in a ready box for the next time they cook,” he said. “So there’s not an active bubbling, churning lab, but the danger is still real.”
Petyak is familiar with this scene. For 23 years, he worked as a Drug Enforcement Administration agent, specializing in meth operations.
The chemicals used to cook meth are toxic and volatile. Neighbors were evacuated as a precaution while a special state police unit from Meadville arrived to assess potential dangers. Petyak expected unit members to be there throughout the night.
“You just can’t bag this stuff up,” Lamancusa noted. “It poses a significant environmental hazard.”
Petyak added that 1 ounce of meth produces 5 to 6 pounds of waste.
“I don’t know the size of the room but as soon as they secured the residence (we) want to get those guys out of there to minimize their exposure to the methamphetamine fumes,” Lamancusa continued.
Petyak said he was concerned with the two children, who were turned over to county Children and Youth Services.
“I know the officers were very upset when they saw the kids,” Lamancusa said.
Petyak noted the youngsters should be taken to the hospital for blood work.
“Children absorb chemicals and other things more readily than adults do. They don’t have the tolerance that adults do, and it can affect their livers.
“You see the little girl come out with the stuffed animal. It’s bad.”
(Reporter Dan Irwin contributed to this story.)
and PATRICK E. LITOWITZ
lmicco@ncnewsonline.com
plitowitz@ncnewsonline.com
The noxious fumes hit Andy Petyak as he entered the Ellwood City home yesterday afternoon.
Seeing two preschoolers inside made the former federal drug agent sick.
Led by the borough police department, authorities shut down a moving methamphetamine lab. Arrested were William Justin Perrine, 40, and Frank Demaro, no age provided, at 418 Ninth St. Perrine faces felony and misdemeanor drug charges. Demaro, held on a state parole detainer, is awaiting charges.
Lawrence County District Attorney Joshua Lamancusa said the raid was the result of a two-week investigation involving a meth lab that moved between Beaver and Lawrence counties.
“We identified a couple of the targets, and we then conducted an operation last week,” he said. “We ended up raiding a house over in Beaver.
“We hit a lab and realized that based on the information ... there was potentially another lab being run in Lawrence County.”
He credited the cooperation of the borough’s police, fire department and Mayor Tony Court, along with Pennsylvania State Police, New Castle police and the Lawrence County Drug Task Force.
“The chiefs of police of Ellwood and New Castle have just given us free reign to do whatever we can to assist them, and their guys are constantly out there,” Lamancusa said of the joint effort. “It’s extremely difficult and dangerous. Today was a good day for law enforcement and the community of Ellwood.
“We want to send the message that we do not want meth coming into our community.”
He also commended New Castle’s full-time narcotics unit.
“They are one of the major players in our drug task force. They are essentially our backbone.”
Police went to the home at 4 p.m. to serve an arrest warrant to Perrine, who is also known as “The Sandman.” A woman met officers at the door and ran in the opposite direction, screaming Perrine’s name. When police and Petyak went inside, they quickly determined that a meth lab was in operation.
“I’ve been doing this so long that as soon as I crossed the threshold of the door, I smelled it,” Petyak said, referring to the solvents used in the drug’s production. “I knew exactly what was in there.”
As they secured the residence, several officers headed to the basement. One of them noticed an unusual wall construction with a shelf in front of it. Once removed, an entry to a secret room was uncovered. Inside were Perrine and Demaro, along with chemicals used to make meth.
Petyak, who is director of the local task force, said the pair reportedly used the “boxed meth lab” method.
“They completed their process and put everything back in a ready box for the next time they cook,” he said. “So there’s not an active bubbling, churning lab, but the danger is still real.”
Petyak is familiar with this scene. For 23 years, he worked as a Drug Enforcement Administration agent, specializing in meth operations.
The chemicals used to cook meth are toxic and volatile. Neighbors were evacuated as a precaution while a special state police unit from Meadville arrived to assess potential dangers. Petyak expected unit members to be there throughout the night.
“You just can’t bag this stuff up,” Lamancusa noted. “It poses a significant environmental hazard.”
Petyak added that 1 ounce of meth produces 5 to 6 pounds of waste.
“I don’t know the size of the room but as soon as they secured the residence (we) want to get those guys out of there to minimize their exposure to the methamphetamine fumes,” Lamancusa continued.
Petyak said he was concerned with the two children, who were turned over to county Children and Youth Services.
“I know the officers were very upset when they saw the kids,” Lamancusa said.
Petyak noted the youngsters should be taken to the hospital for blood work.
“Children absorb chemicals and other things more readily than adults do. They don’t have the tolerance that adults do, and it can affect their livers.
“You see the little girl come out with the stuffed animal. It’s bad.”
(Reporter Dan Irwin contributed to this story.)
Friday, March 11, 2011
One-derful
By PATRICK E. LITOWITZ
Progress 2011
The New Castle school system’s pre-kindergarten classes introduce youngsters to early learning.
The program has generated success during its seven years in operation.
The district’s proposed kindergarten through second-grade facility — the Harry W. Lockley Early Learning Center — is expected to bolster those efforts.
“The stuff we do in here is what we did in kindergarten when I was younger,” said April Lemmon, a teacher at the Croton Pre-Kindergarten Center and a Ne-Ca-Hi graduate.
“You can really tell the kids that come from a Pre-K program as opposed to day care because they learn a lot,” she said.
“When they go to kindergarten, they’re not lost.”
Terence P. Meehan, administrative assistant to Superintendent George Gabriel, said the center is an important piece of the early learning initiative.
“I see this every day what these kids can do. The sentences they can complete. The way they can communicate,” he said.
“If we don’t build on it, it’s a loss of time and effort. We come out of the gate with a head start, but what we’re doing in New Castle is very progressive.”
The center will also reverse the practice of separating students into neighborhood schools, Meehan said.
“The kids would come here and start friendships that were invaluable,” he said. “Then they’d all go to Lockley for kindergarten. Then all of the sudden they would split up into three (John F. Kennedy, West Side and Thaddeus Stevens primary centers).
“Now we’re one unified district. I think that word ‘unified’ is critical. That will be a major benefit of the early learning center.”
Familiarity is a byproduct of unity, Meehan said.
“There’s a lot to say about familiarity. Some people say familiarity breeds contempt and they might be correct in some situations.
“For an early learner, familiarity is an ingredient to success.”
Starting with the pre-kindergarten students, reading skills are emphasized.
“When they go to kindergarten, they’re going to read,” Lemmon said.
Meehan said students that have had that extra year have consistently been academic leaders within their grade level. District students receive structured reading instruction through seventh grade.
“With all this data from all these years of information, we hope we can identify kids’ strengths and weaknesses.
Meehan said the early learning approach isn’t new in the educational community.
“I’ve never worked in a K-2 center, but I believe in it based on what I see from our early learners in the Pre-K program.”
Lemmon said the changes are tremendous when comparing students from the beginning to the end of the school year.
“When you teach them to make the first letter of their name ... just the look on their faces when you teach them as something as simple as that is priceless.”
Progress 2011
The New Castle school system’s pre-kindergarten classes introduce youngsters to early learning.
The program has generated success during its seven years in operation.
The district’s proposed kindergarten through second-grade facility — the Harry W. Lockley Early Learning Center — is expected to bolster those efforts.
“The stuff we do in here is what we did in kindergarten when I was younger,” said April Lemmon, a teacher at the Croton Pre-Kindergarten Center and a Ne-Ca-Hi graduate.
“You can really tell the kids that come from a Pre-K program as opposed to day care because they learn a lot,” she said.
“When they go to kindergarten, they’re not lost.”
Terence P. Meehan, administrative assistant to Superintendent George Gabriel, said the center is an important piece of the early learning initiative.
“I see this every day what these kids can do. The sentences they can complete. The way they can communicate,” he said.
“If we don’t build on it, it’s a loss of time and effort. We come out of the gate with a head start, but what we’re doing in New Castle is very progressive.”
The center will also reverse the practice of separating students into neighborhood schools, Meehan said.
“The kids would come here and start friendships that were invaluable,” he said. “Then they’d all go to Lockley for kindergarten. Then all of the sudden they would split up into three (John F. Kennedy, West Side and Thaddeus Stevens primary centers).
“Now we’re one unified district. I think that word ‘unified’ is critical. That will be a major benefit of the early learning center.”
Familiarity is a byproduct of unity, Meehan said.
“There’s a lot to say about familiarity. Some people say familiarity breeds contempt and they might be correct in some situations.
“For an early learner, familiarity is an ingredient to success.”
Starting with the pre-kindergarten students, reading skills are emphasized.
“When they go to kindergarten, they’re going to read,” Lemmon said.
Meehan said students that have had that extra year have consistently been academic leaders within their grade level. District students receive structured reading instruction through seventh grade.
“With all this data from all these years of information, we hope we can identify kids’ strengths and weaknesses.
Meehan said the early learning approach isn’t new in the educational community.
“I’ve never worked in a K-2 center, but I believe in it based on what I see from our early learners in the Pre-K program.”
Lemmon said the changes are tremendous when comparing students from the beginning to the end of the school year.
“When you teach them to make the first letter of their name ... just the look on their faces when you teach them as something as simple as that is priceless.”
Thursday, March 10, 2011
New Castle rocked in proposed budget
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Gov. Tom Corbett’s proposed budget would pound the New Castle Area School District with an “economic tsunami.”
Corbett presented a $27.3 billion spending plan Tuesday, which must be approved in the Republican-controlled General Assembly. While it represents an $866 million reduction from the previous year, public schools would receive $1 billion less in support, the Associated Press reported.
Superintendent George Gabriel said preliminary figures from the state show the district losing $3.3 million for the 2011-2012 school year. Approximately $40 million will be spent this school year.
“This will fundamentally change the way we deliver instruction,” he said. “We will no longer have relatively small class sizes.
“This is all going to have a negative impact. Ultimately, it’s going to hurt our kids.”
The district’s basic education funding would see a $2.3 million shortfall. Corbett declined to finance a special grant that pays for pre-kindergarten programs statewide. The monies provided approximately $871,000 for the Croton Pre-Kindergarten Center.
“We’re going to assess everything from pencils to staffing needs,” Gabriel said. “There’s going to be a comprehensive look at the needs of the district.”
He said the pre-kindergarten program and the $19 million early learning center would be included in that examination.
“It’s too soon to say anything about pay freezes or cutting X amount of teachers, but there is a reality that we are going to have to take some steps to make up for that money.”
Business manager Joseph Ambrosini said preparations from the district’s 2011-2012 budget have started. He expects it to be presented to the board and public in May.
“Every line item in the budget is going to be scrutinized,” he said.
Ambrosini noted that 65 to 75 percent of the district’s funding comes from state sources.
“The impact on a lower social-economic school district is going to be greater than those who rely on real estate taxes,” he said. “This (budget cut) is larger than anyone expected.
“There’s no question that the experiences my kids have had in the district with the programs and individualized attention is not going to be the same in the upcoming years.”
New Castle has a $12 million fund balance, $3 million of which is set aside for capital improvements. The administration and board will determine how those dollars will be applied.
The district’s tax rate has been 17.27 mills for the last eight years, Ambrosini said.
In his address, the governor called on public school employees to take a one-year pay freeze. He estimated the move could save $400 million.
New Castle has started negotiations with its teachers union, whose contract ends in June. The district reached agreements last year with its secretary and custodial workers. However, their health care benefits are tied to the teachers’ contract.
(The Associated Press contributed to this story.)
plitowitz@ncnewsonline.com
Gov. Tom Corbett’s proposed budget would pound the New Castle Area School District with an “economic tsunami.”
Corbett presented a $27.3 billion spending plan Tuesday, which must be approved in the Republican-controlled General Assembly. While it represents an $866 million reduction from the previous year, public schools would receive $1 billion less in support, the Associated Press reported.
Superintendent George Gabriel said preliminary figures from the state show the district losing $3.3 million for the 2011-2012 school year. Approximately $40 million will be spent this school year.
“This will fundamentally change the way we deliver instruction,” he said. “We will no longer have relatively small class sizes.
“This is all going to have a negative impact. Ultimately, it’s going to hurt our kids.”
The district’s basic education funding would see a $2.3 million shortfall. Corbett declined to finance a special grant that pays for pre-kindergarten programs statewide. The monies provided approximately $871,000 for the Croton Pre-Kindergarten Center.
“We’re going to assess everything from pencils to staffing needs,” Gabriel said. “There’s going to be a comprehensive look at the needs of the district.”
He said the pre-kindergarten program and the $19 million early learning center would be included in that examination.
“It’s too soon to say anything about pay freezes or cutting X amount of teachers, but there is a reality that we are going to have to take some steps to make up for that money.”
Business manager Joseph Ambrosini said preparations from the district’s 2011-2012 budget have started. He expects it to be presented to the board and public in May.
“Every line item in the budget is going to be scrutinized,” he said.
Ambrosini noted that 65 to 75 percent of the district’s funding comes from state sources.
“The impact on a lower social-economic school district is going to be greater than those who rely on real estate taxes,” he said. “This (budget cut) is larger than anyone expected.
“There’s no question that the experiences my kids have had in the district with the programs and individualized attention is not going to be the same in the upcoming years.”
New Castle has a $12 million fund balance, $3 million of which is set aside for capital improvements. The administration and board will determine how those dollars will be applied.
The district’s tax rate has been 17.27 mills for the last eight years, Ambrosini said.
In his address, the governor called on public school employees to take a one-year pay freeze. He estimated the move could save $400 million.
New Castle has started negotiations with its teachers union, whose contract ends in June. The district reached agreements last year with its secretary and custodial workers. However, their health care benefits are tied to the teachers’ contract.
(The Associated Press contributed to this story.)
Thursday, March 3, 2011
Dissolving company expected penalty
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Castle Realty Appraisal Services Inc. is out of business but exists on paper.
Senior U.S. District Judge Gustave Diamond had to acknowledge that fact Tuesday when he sentenced the Neshannock Township firm for its role in the Affordable Housing mortgage scandal. It was ordered to pay $244,000 in restitution to First Commonwealth Bank and to serve two years of probation on its conviction of bank fraud.
The government charged the appraisal company authored inflated property assessments to First Commonwealth. The bank used the appraisals to approve a $250,000 loan in December 2005 that allowed Affordable Housing of Lawrence County to purchase seven properties.
The nonprofit agency went into default months later. Overall losses, which included $200,000 from the Lawrence County Housing Authority, amounted to approximately a half-million dollars.
“None of us are agonizing over this,” company attorney Thomas J. Farrell said yesterday.
Castle filed articles of dissolution with the state in mid-February. Decertification can take place in as early as 30 days.
“The judge is obligated to put it on probation with the condition of paying the balance of the restitution,” Farrell said.
In his review of the company’s presentence report, Diamond said full restitution was mandatory and probation was a proper penalty unless the company officially disbanded.
Farrell said that as part of Castle’s plea bargain it was ordered to pay full restitution. The amount was unknown when it pleaded guilty in October.
The company also agreed to pay $75,000 prior to sentencing.
“It was always known that the full amount would be more than $75,000,” he said. “Even back then, we realized this company was going out of business.”
The verdict will have minimal effect in the appraisal firm’s case.
Since the company does not generate income, it is unable to make payments to First Commonwealth. Farrell said Castle will not be penalized for its inability to pay.
The firm’s sentencing had been set for Tuesday. Diamond rescheduled the hearing and ordered a status conference to be held instead.
Farrell said his client was prepared to be sentenced that day.
“Let’s get this done,” Farrell said. “It’s pretty straight forward, and we all agreed on it.”
Castle Realty Appraisal Services Inc. is not affiliated with Castle Realty, an independent real estate company.
The businesses are separate entities but had operated out of the same Wilmington Road location.
plitowitz@ncnewsonline.com
Castle Realty Appraisal Services Inc. is out of business but exists on paper.
Senior U.S. District Judge Gustave Diamond had to acknowledge that fact Tuesday when he sentenced the Neshannock Township firm for its role in the Affordable Housing mortgage scandal. It was ordered to pay $244,000 in restitution to First Commonwealth Bank and to serve two years of probation on its conviction of bank fraud.
The government charged the appraisal company authored inflated property assessments to First Commonwealth. The bank used the appraisals to approve a $250,000 loan in December 2005 that allowed Affordable Housing of Lawrence County to purchase seven properties.
The nonprofit agency went into default months later. Overall losses, which included $200,000 from the Lawrence County Housing Authority, amounted to approximately a half-million dollars.
“None of us are agonizing over this,” company attorney Thomas J. Farrell said yesterday.
Castle filed articles of dissolution with the state in mid-February. Decertification can take place in as early as 30 days.
“The judge is obligated to put it on probation with the condition of paying the balance of the restitution,” Farrell said.
In his review of the company’s presentence report, Diamond said full restitution was mandatory and probation was a proper penalty unless the company officially disbanded.
Farrell said that as part of Castle’s plea bargain it was ordered to pay full restitution. The amount was unknown when it pleaded guilty in October.
The company also agreed to pay $75,000 prior to sentencing.
“It was always known that the full amount would be more than $75,000,” he said. “Even back then, we realized this company was going out of business.”
The verdict will have minimal effect in the appraisal firm’s case.
Since the company does not generate income, it is unable to make payments to First Commonwealth. Farrell said Castle will not be penalized for its inability to pay.
The firm’s sentencing had been set for Tuesday. Diamond rescheduled the hearing and ordered a status conference to be held instead.
Farrell said his client was prepared to be sentenced that day.
“Let’s get this done,” Farrell said. “It’s pretty straight forward, and we all agreed on it.”
Castle Realty Appraisal Services Inc. is not affiliated with Castle Realty, an independent real estate company.
The businesses are separate entities but had operated out of the same Wilmington Road location.
Tuesday, March 1, 2011
DeRosa attorneys seek light sentence
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Nicholas DeRosa’s attorneys and federal prosecutors can agree one thing occurred last October.
Before U.S. District Judge Gustave Diamond, the New Castle resident pleaded guilty to felony counts of bank fraud, mail fraud and conspiracy to commit money laundering as part of the government’s investigation of mortgage fraud in Lawrence County.
However, the seriousness of the offenses is being questioned.
The scam involving the sale of seven properties to Affordable Housing of Lawrence County resulted in losses nearing a half-million dollars. Affordable Housing officers secured a $250,000 mortgage from First Commonwealth Bank. The Lawrence County Housing Authority, which created the nonprofit agency in 2003, provided $200,000 in funding.
Four of the seven properties sold were either owned by DeRosa or in partnership with John Orlando.
“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 after DeRosa’s plea.
WINDFALL?
Defense attorney Jeffrey M. Weimer disputed DeRosa’s financial windfall. Instead of being responsible for more than $200,000 to which he pleaded, DeRosa should be accountable for $12,500, Weimer said. That amount represents money he received from two friends to sell their properties to Affordable Housing.
DeRosa also engaged in “poor judgment to associate with criminals who embezzled money from public finances and diverted it to pay legal fees for their own, unrelated misdeeds.”
Diamond will decide which depiction of the retired educator is accurate when he sentences DeRosa at 10 a.m. March 22 in federal court, downtown Pittsburgh.
Defense attorneys began an assault on the government’s case when they stated their objections to a presentence investigation report prepared in January. The government document outlines the case, DeRosa’s involvement and the sentencing guidelines.
OBJECTIONS
Among the items to which they object:
•DeRosa advised Castle Realty Appraisal Services on how to prepare the appraisals.
•He established the sale prices for the properties sold to Affordable Housing.
•The conditions of the properties rested with the DeRosa.
•Affordable Housing consultant Robert Ratkovich and DeRosa shared money from the sales.
•Former county Treasurer Gary Felasco, Ratkovich and DeRosa plotted to pay Felasco’s attorney fees through the Affordable Housing sales.
The objections are part of DeRosa’s effort to receive probation or house arrest instead of the punishment suggested under the federal sentencing guidelines. He could face prison time, probation, restitution, forfeiture of assets and fines. The government agreed to a prison term of no more than four years.
FAIRNESS
Weimer also questioned the fairness in sentencing when compared to three of the four parties involved.
“The co-conspirators in this matter served much less time, although they engaged in much more serious criminal conduct,” he wrote in a motion.
Diamond veered from the guidelines when sentencing Felasco and Ratkovich.
Failing to file a 2005 federal tax return, Felasco received three years probation with the first six months under home detention. He faced four to 10 months in prison. The former treasurer was also ordered to repay back taxes with interest.
Ratkovich pleaded guilty on one count of bank and mail fraud conspiracy and one count of conspiracy to launder money. The former city councilman and housing authority maintenance director was sentenced to five years probation for each count, which is being served at the same time. He also was placed under house arrest for eight months and ordered to repay $338,800.
Diamond cited the assistance the pair provided in the government’s investigation as the reason for sentence reduction.
Castle Realty Appraisal Services Inc., a Neshannock firm that ended operations recently, was fined $75,000. The payment to First Commonwealth was a condition of the agreement in which the company pleaded guilty to one felony count of bank fraud.
A fifth person, Michael Trover of New Castle, was charged with three counts of lying to a grand jury. The contractor’s testimony centered on Ratkovich. Trover’s trial is scheduled for 9:30 a.m. March 14.
Weimer added that DeRosa has accepted responsibility for his actions and pointed to his service as an educator and community leader.
“He has suffered in the eyes of those he cares most about: his family, his friends, and members of his community,” the attorney wrote. “He has lost much of his own self-respect, and he experiences periods of great depression along with his feelings of remorse.
“Mr. DeRosa nevertheless remains a much-loved and much-respected member in his community.”
plitowitz@ncnewsonline.com
Nicholas DeRosa’s attorneys and federal prosecutors can agree one thing occurred last October.
Before U.S. District Judge Gustave Diamond, the New Castle resident pleaded guilty to felony counts of bank fraud, mail fraud and conspiracy to commit money laundering as part of the government’s investigation of mortgage fraud in Lawrence County.
However, the seriousness of the offenses is being questioned.
The scam involving the sale of seven properties to Affordable Housing of Lawrence County resulted in losses nearing a half-million dollars. Affordable Housing officers secured a $250,000 mortgage from First Commonwealth Bank. The Lawrence County Housing Authority, which created the nonprofit agency in 2003, provided $200,000 in funding.
Four of the seven properties sold were either owned by DeRosa or in partnership with John Orlando.
“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 after DeRosa’s plea.
WINDFALL?
Defense attorney Jeffrey M. Weimer disputed DeRosa’s financial windfall. Instead of being responsible for more than $200,000 to which he pleaded, DeRosa should be accountable for $12,500, Weimer said. That amount represents money he received from two friends to sell their properties to Affordable Housing.
DeRosa also engaged in “poor judgment to associate with criminals who embezzled money from public finances and diverted it to pay legal fees for their own, unrelated misdeeds.”
Diamond will decide which depiction of the retired educator is accurate when he sentences DeRosa at 10 a.m. March 22 in federal court, downtown Pittsburgh.
Defense attorneys began an assault on the government’s case when they stated their objections to a presentence investigation report prepared in January. The government document outlines the case, DeRosa’s involvement and the sentencing guidelines.
OBJECTIONS
Among the items to which they object:
•DeRosa advised Castle Realty Appraisal Services on how to prepare the appraisals.
•He established the sale prices for the properties sold to Affordable Housing.
•The conditions of the properties rested with the DeRosa.
•Affordable Housing consultant Robert Ratkovich and DeRosa shared money from the sales.
•Former county Treasurer Gary Felasco, Ratkovich and DeRosa plotted to pay Felasco’s attorney fees through the Affordable Housing sales.
The objections are part of DeRosa’s effort to receive probation or house arrest instead of the punishment suggested under the federal sentencing guidelines. He could face prison time, probation, restitution, forfeiture of assets and fines. The government agreed to a prison term of no more than four years.
FAIRNESS
Weimer also questioned the fairness in sentencing when compared to three of the four parties involved.
“The co-conspirators in this matter served much less time, although they engaged in much more serious criminal conduct,” he wrote in a motion.
Diamond veered from the guidelines when sentencing Felasco and Ratkovich.
Failing to file a 2005 federal tax return, Felasco received three years probation with the first six months under home detention. He faced four to 10 months in prison. The former treasurer was also ordered to repay back taxes with interest.
Ratkovich pleaded guilty on one count of bank and mail fraud conspiracy and one count of conspiracy to launder money. The former city councilman and housing authority maintenance director was sentenced to five years probation for each count, which is being served at the same time. He also was placed under house arrest for eight months and ordered to repay $338,800.
Diamond cited the assistance the pair provided in the government’s investigation as the reason for sentence reduction.
Castle Realty Appraisal Services Inc., a Neshannock firm that ended operations recently, was fined $75,000. The payment to First Commonwealth was a condition of the agreement in which the company pleaded guilty to one felony count of bank fraud.
A fifth person, Michael Trover of New Castle, was charged with three counts of lying to a grand jury. The contractor’s testimony centered on Ratkovich. Trover’s trial is scheduled for 9:30 a.m. March 14.
Weimer added that DeRosa has accepted responsibility for his actions and pointed to his service as an educator and community leader.
“He has suffered in the eyes of those he cares most about: his family, his friends, and members of his community,” the attorney wrote. “He has lost much of his own self-respect, and he experiences periods of great depression along with his feelings of remorse.
“Mr. DeRosa nevertheless remains a much-loved and much-respected member in his community.”
Monday, February 28, 2011
Neshannock firm closes after paying restitution
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A Neshannock Township firm ceased operations after repaying a bank that had been defrauded in the Affordable Housing scandal.
The U.S. Attorney’s Office pursuit of $125,000 in additional restitution hastened the end of Castle Realty Appraisal Services Inc.
The business paid $75,000 in mid-February to First Commonwealth Bank, according to federal documents. The payment was part of the agreement in which the company pleaded guilty to one felony count of bank fraud.
Government prosecutors charged that Castle Realty Appraisal Services provided fraudulent assessments to First Commonwealth. The information was used as part of Affordable Housing of Lawrence County’s $250,000 loan application for seven properties.
After the company’s plea hearing in October, its attorney Thomas J. Farrell said the judge could issue a fine, order additional compensation or impose probation when sentencing occurred. In response to the presentence report, the government said the restitution amount was understated and the correct total was $200,000.
Approximately two weeks ago, the company prepared and filed articles of dissolution with the state. Castle Realty Appraisal Services said it lacked the money to satisfy its liabilities.
Senior U.S. District Judge Gustave Diamond addressed the company’s probable fate Wednesday when he reviewed the presentence report. First Commonwealth’s total losses were pegged at $312,614, which represented principal and interest.
The bank received $60,200 from the sale of seven Affordable Housing properties. That leaves the bank out of $252,414. Diamond said full restitution was mandatory under federal sentencing guidelines.
“(It) is readily ascertainable that defendant cannot and is not likely to become able to pay the minimum of the guideline fine range,” Diamond wrote.
He noted that unless the company dissolved, probation was a suitable punishment.
The day after Diamond’s review Farrell filed paperwork advising Castle Realty Appraisal Services had gone out of business.
A company representative was scheduled to appear tomorrow morning for sentencing in federal court, downtown Pittsburgh. Diamond ordered a status conference instead and continued the sentencing hearing.
plitowitz@ncnewsonline.com
A Neshannock Township firm ceased operations after repaying a bank that had been defrauded in the Affordable Housing scandal.
The U.S. Attorney’s Office pursuit of $125,000 in additional restitution hastened the end of Castle Realty Appraisal Services Inc.
The business paid $75,000 in mid-February to First Commonwealth Bank, according to federal documents. The payment was part of the agreement in which the company pleaded guilty to one felony count of bank fraud.
Government prosecutors charged that Castle Realty Appraisal Services provided fraudulent assessments to First Commonwealth. The information was used as part of Affordable Housing of Lawrence County’s $250,000 loan application for seven properties.
After the company’s plea hearing in October, its attorney Thomas J. Farrell said the judge could issue a fine, order additional compensation or impose probation when sentencing occurred. In response to the presentence report, the government said the restitution amount was understated and the correct total was $200,000.
Approximately two weeks ago, the company prepared and filed articles of dissolution with the state. Castle Realty Appraisal Services said it lacked the money to satisfy its liabilities.
Senior U.S. District Judge Gustave Diamond addressed the company’s probable fate Wednesday when he reviewed the presentence report. First Commonwealth’s total losses were pegged at $312,614, which represented principal and interest.
The bank received $60,200 from the sale of seven Affordable Housing properties. That leaves the bank out of $252,414. Diamond said full restitution was mandatory under federal sentencing guidelines.
“(It) is readily ascertainable that defendant cannot and is not likely to become able to pay the minimum of the guideline fine range,” Diamond wrote.
He noted that unless the company dissolved, probation was a suitable punishment.
The day after Diamond’s review Farrell filed paperwork advising Castle Realty Appraisal Services had gone out of business.
A company representative was scheduled to appear tomorrow morning for sentencing in federal court, downtown Pittsburgh. Diamond ordered a status conference instead and continued the sentencing hearing.
DeRosa supporters laud him to court
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A retired judge calls Nicholas DeRosa a good friend, while a university president sees a man with an important legacy.
Not only are friends and family seeking leniency for the New Castle resident. School superintendents, city school district employees and doctors are among his supporters.
DeRosa pleaded guilty in late October to felony counts of bank fraud, mail fraud and conspiracy to commit money laundering. The plea came in the aftermath of the federal government’s mortgage fraud investigation of Affordable Housing of Lawrence County.
He was scheduled to be sentenced tomorrow morning in federal court, downtown Pittsburgh. The hearing has been moved to 10 a.m. March 22.
The following are selections from some of the 18 letters submitted to Senior U.S. District Judge Gustave Diamond. Approximately 70 signatures were attached to the correspondences, which discussed DeRosa’s commitment to family, school and community. The letters in their entirety are located at www.ncnewsonline.com.
“I know hundreds of people who know Nick and cannot recall having heard a negative about him. Personally, prior to the reporting of his charges, I had not heard or seen anything that even hinted at greed, avarice, or dishonesty at any level. The circumstances which bring him to your court represent one of the biggest surprises and disappointments I have experienced.”
Glenn McCracken Jr.
Retired Lawrence County common pleas court
“As a Trustee over these many years, Mr. DeRosa served the University faithfully and with distinction … As a senior member of our Council, Mr. DeRosa was a leader and a consensus maker … I do not dispute the seriousness of the charges facing Mr. DeRosa. However, I continue to believe in the whole person and believe Mr. DeRosa’s larger body of work within his community and for the Commonwealth is an important legacy worthy of consideration within the discretion of sentencing allowed by the court.”
Robert M. Smith
President, Slippery Rock University
“Nicholas was brought up to respect the importance of family and the deep rewards that can be derived by being part of a strong family framework. Throughout the years, Nicholas lived with our parents and helped raise his son Michael and his niece Lisa (whose mother passed away when Lisa was less than one year old). Nicholas inspired, through his own educational experience and his vocation as an educator, both Michael and Lisa to attend and graduate from college … Family has always come first to Nicholas and he has proven this in many ways throughout his life.”
Theresa Burgo, sister
Anna Marie Leatherow, niece
Dr. Alfred Burgo, nephew
Lisa Hites, niece
Michael DeRosa, son
“All of the undersigned have known Nick anywhere from thirty to sixty years. Several of us have grown up with Nick in the Croton area of New Castle, where he was born, raised, and still resides.
“Nick was a very active member of our community. He held positions in the New Castle Area School District as an Elementary Teacher and later as (Assistant) Superintendent for approximately forty years. Nick has been a public servant as a Trustee of Slippery Rock University for twenty-four years, New Castle City Councilman for twelve years, Lawrence County Planning Commission Member for 10 years, and past President of New Castle Area Wolves and National Association of Wolves scholarship organization. For eighteen years, Nick and his friend John Orlando have given one thousand dollar scholarships to low-income high school seniors to attend college.”
Friends of Nick DeRosa
“I have observed (DeRosa’s) professional attributes and recognize his many talents in the area of labor relations, transportation, and organizational negotiations. He effectively contributed to the operations of the school district and was truly someone that I, along with our entire staff, was able to count on for assistance when needed … Mr. Nicholas DeRosa has been someone I have known closely for 40 years. I believe that he will continue to be remembered as a unique, caring, and supportive individual to all who have the pleasure of knowing him.”
George J. Gabriel
Superintendent, New Castle Area School District
“Working cooperatively and amicably, we were able to reach successor collective bargaining agreements for all three bargaining units (teachers, secretaries and paraprofessionals) in the NCASD. I also worked numerous times with Mr. DeRosa to resolve grievances. He was at all times professional, respectful and extremely cooperative in working through our differences to reach an acceptable resolution to any disagreements …
“He has always been open, honest, considerate, and simply a man of his word. He has a genuine concern for the good of his fellow man as he would help in any way possible.”
Paul J. Sibeto Jr.
Spanish teacher, New Castle Area School District
President, New Castle Federation of Teachers
“Judge Diamond, I respectfully request that strong consideration be given to the service Mr. DeRosa has rendered to his community. To quote Robert Kennedy, ‘Service is the greatest of freedom’s privileges.’
“As written in the Antigone of Sophocles, ‘All men make mistakes, but a good man yields when he knows his course is wrong and repairs his evil.’ I honestly believe that Mr. DeRosa has repaired the evil and is prepared to make amends through additional service to his community. He is basically a good man and person.”
Dr. Dennis E. Murray
Superintendent, Altoona Area School District
Slippery Rock University Council of Trustees
plitowitz@ncnewsonline.com
A retired judge calls Nicholas DeRosa a good friend, while a university president sees a man with an important legacy.
Not only are friends and family seeking leniency for the New Castle resident. School superintendents, city school district employees and doctors are among his supporters.
DeRosa pleaded guilty in late October to felony counts of bank fraud, mail fraud and conspiracy to commit money laundering. The plea came in the aftermath of the federal government’s mortgage fraud investigation of Affordable Housing of Lawrence County.
He was scheduled to be sentenced tomorrow morning in federal court, downtown Pittsburgh. The hearing has been moved to 10 a.m. March 22.
The following are selections from some of the 18 letters submitted to Senior U.S. District Judge Gustave Diamond. Approximately 70 signatures were attached to the correspondences, which discussed DeRosa’s commitment to family, school and community. The letters in their entirety are located at www.ncnewsonline.com.
“I know hundreds of people who know Nick and cannot recall having heard a negative about him. Personally, prior to the reporting of his charges, I had not heard or seen anything that even hinted at greed, avarice, or dishonesty at any level. The circumstances which bring him to your court represent one of the biggest surprises and disappointments I have experienced.”
Glenn McCracken Jr.
Retired Lawrence County common pleas court
“As a Trustee over these many years, Mr. DeRosa served the University faithfully and with distinction … As a senior member of our Council, Mr. DeRosa was a leader and a consensus maker … I do not dispute the seriousness of the charges facing Mr. DeRosa. However, I continue to believe in the whole person and believe Mr. DeRosa’s larger body of work within his community and for the Commonwealth is an important legacy worthy of consideration within the discretion of sentencing allowed by the court.”
Robert M. Smith
President, Slippery Rock University
“Nicholas was brought up to respect the importance of family and the deep rewards that can be derived by being part of a strong family framework. Throughout the years, Nicholas lived with our parents and helped raise his son Michael and his niece Lisa (whose mother passed away when Lisa was less than one year old). Nicholas inspired, through his own educational experience and his vocation as an educator, both Michael and Lisa to attend and graduate from college … Family has always come first to Nicholas and he has proven this in many ways throughout his life.”
Theresa Burgo, sister
Anna Marie Leatherow, niece
Dr. Alfred Burgo, nephew
Lisa Hites, niece
Michael DeRosa, son
“All of the undersigned have known Nick anywhere from thirty to sixty years. Several of us have grown up with Nick in the Croton area of New Castle, where he was born, raised, and still resides.
“Nick was a very active member of our community. He held positions in the New Castle Area School District as an Elementary Teacher and later as (Assistant) Superintendent for approximately forty years. Nick has been a public servant as a Trustee of Slippery Rock University for twenty-four years, New Castle City Councilman for twelve years, Lawrence County Planning Commission Member for 10 years, and past President of New Castle Area Wolves and National Association of Wolves scholarship organization. For eighteen years, Nick and his friend John Orlando have given one thousand dollar scholarships to low-income high school seniors to attend college.”
Friends of Nick DeRosa
“I have observed (DeRosa’s) professional attributes and recognize his many talents in the area of labor relations, transportation, and organizational negotiations. He effectively contributed to the operations of the school district and was truly someone that I, along with our entire staff, was able to count on for assistance when needed … Mr. Nicholas DeRosa has been someone I have known closely for 40 years. I believe that he will continue to be remembered as a unique, caring, and supportive individual to all who have the pleasure of knowing him.”
George J. Gabriel
Superintendent, New Castle Area School District
“Working cooperatively and amicably, we were able to reach successor collective bargaining agreements for all three bargaining units (teachers, secretaries and paraprofessionals) in the NCASD. I also worked numerous times with Mr. DeRosa to resolve grievances. He was at all times professional, respectful and extremely cooperative in working through our differences to reach an acceptable resolution to any disagreements …
“He has always been open, honest, considerate, and simply a man of his word. He has a genuine concern for the good of his fellow man as he would help in any way possible.”
Paul J. Sibeto Jr.
Spanish teacher, New Castle Area School District
President, New Castle Federation of Teachers
“Judge Diamond, I respectfully request that strong consideration be given to the service Mr. DeRosa has rendered to his community. To quote Robert Kennedy, ‘Service is the greatest of freedom’s privileges.’
“As written in the Antigone of Sophocles, ‘All men make mistakes, but a good man yields when he knows his course is wrong and repairs his evil.’ I honestly believe that Mr. DeRosa has repaired the evil and is prepared to make amends through additional service to his community. He is basically a good man and person.”
Dr. Dennis E. Murray
Superintendent, Altoona Area School District
Slippery Rock University Council of Trustees
DeRosa downplays role in scam
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Nicholas DeRosa denied being the major figure behind a Lawrence County mortgage scandal.
In an effort to gain leniency prior to sentencing, the retired New Castle school administrator admitted he took money from friends and helped collect funds to pay for a disgraced official’s legal fees.
“I pled guilty because it was the right thing to do,” DeRosa explained last week in a letter to U.S. District Judge Gustave Diamond. “I am guilty and I want to take responsibility for the things I’ve done to break the law.”
As to the collapse of a nonprofit housing agency, DeRosa said others were responsible.
“I didn’t personally take any taxpayer money from Affordable Housing (of Lawrence County) or from anyone else,” he wrote to Diamond. “I didn’t do anything to falsify the values of the appraisals for the houses AHLC brought.”
DeRosa’s attorneys hope their client’s admission and letters of support will result in probation.
A federal investigation resulted in DeRosa’s guilty plea in October to charges of bank fraud, mail fraud and conspiracy to commit money laundering. Diamond was scheduled to sentence DeRosa tomorrow morning in federal court, downtown Pittsburgh. However, he moved the hearing to 10 a.m. March 22 at the request of government prosecutors.
“(DeRosa) claims responsibility for an extremely narrow set of facts,” the U.S. Attorney’s Office responded. “In the government’s view, the defendant’s conduct in this case is much more egregious than set forth in the defendant’s pleadings.”
Approximately a half-million dollars was lost in the fraud. First Commonwealth Bank had approved a $250,000 loan for the purchase of seven properties. The Lawrence County Housing Authority, which created Affordable Housing, provided the group with $200,000 in start-up funds.
DeRosa said he took money from two friends who sold their properties to Affordable Housing.
“Those payments weren’t disclosed to the bank,” he said. “And I was present and helped get money to Gary Felasco’s lawyer.”
Felasco is a former county treasurer who was convicted on theft and embezzlement charges in 2006.
“I’m sorry for what I did,” he said. “It ruined me and brought shame and disgrace to me and my family.
“It doesn’t take away from all of the good work I’ve done raising money for college scholarships and public service, but it still doesn’t add anything, either, and this is probably what I’ll be remembered for, not the good works I’ve done.”
Prior to the scandal, DeRosa had served on governmental and community boards. A longtime educator, he also was elected to city council and named to Slippery Rock University’s Council of Trustees.
But controversy followed as well. Most of it dealt with his role as the school district’s assistant superintendent. The school board hired attorney Richard A. Harper in 2004 to review a state audit critical of the district and DeRosa.
The audit outlined DeRosa’s gambling activities, which allowed him to obtain free hotel rooms for board members attending a 2002 conference; issues regarding travel while representing the district; his failure to disclose financial interests; and food purchases he made from the district without prior approval.
Harper’s report became a critique of DeRosa’s shortcomings as an administrator.
His retirement in July 2006 created a stir when it was disclosed he would receive approximately $69,000 for unused sick and vacation days. That amount was in addition to the $40,000 he was paid as part of the district’s retirement package for administrators.
DeRosa’s pension is estimated to be $100,000 annually.
In addition to his North Cascade Street home, DeRosa is a part-owner of a condominium in Collier County, Fla. The property is valued at approximately $98,000.
“I have very little money and little reputation to speak of left,” DeRosa said. “I am older than I want to be.”
plitowitz@ncnewsonline.com
Nicholas DeRosa denied being the major figure behind a Lawrence County mortgage scandal.
In an effort to gain leniency prior to sentencing, the retired New Castle school administrator admitted he took money from friends and helped collect funds to pay for a disgraced official’s legal fees.
“I pled guilty because it was the right thing to do,” DeRosa explained last week in a letter to U.S. District Judge Gustave Diamond. “I am guilty and I want to take responsibility for the things I’ve done to break the law.”
As to the collapse of a nonprofit housing agency, DeRosa said others were responsible.
“I didn’t personally take any taxpayer money from Affordable Housing (of Lawrence County) or from anyone else,” he wrote to Diamond. “I didn’t do anything to falsify the values of the appraisals for the houses AHLC brought.”
DeRosa’s attorneys hope their client’s admission and letters of support will result in probation.
A federal investigation resulted in DeRosa’s guilty plea in October to charges of bank fraud, mail fraud and conspiracy to commit money laundering. Diamond was scheduled to sentence DeRosa tomorrow morning in federal court, downtown Pittsburgh. However, he moved the hearing to 10 a.m. March 22 at the request of government prosecutors.
“(DeRosa) claims responsibility for an extremely narrow set of facts,” the U.S. Attorney’s Office responded. “In the government’s view, the defendant’s conduct in this case is much more egregious than set forth in the defendant’s pleadings.”
Approximately a half-million dollars was lost in the fraud. First Commonwealth Bank had approved a $250,000 loan for the purchase of seven properties. The Lawrence County Housing Authority, which created Affordable Housing, provided the group with $200,000 in start-up funds.
DeRosa said he took money from two friends who sold their properties to Affordable Housing.
“Those payments weren’t disclosed to the bank,” he said. “And I was present and helped get money to Gary Felasco’s lawyer.”
Felasco is a former county treasurer who was convicted on theft and embezzlement charges in 2006.
“I’m sorry for what I did,” he said. “It ruined me and brought shame and disgrace to me and my family.
“It doesn’t take away from all of the good work I’ve done raising money for college scholarships and public service, but it still doesn’t add anything, either, and this is probably what I’ll be remembered for, not the good works I’ve done.”
Prior to the scandal, DeRosa had served on governmental and community boards. A longtime educator, he also was elected to city council and named to Slippery Rock University’s Council of Trustees.
But controversy followed as well. Most of it dealt with his role as the school district’s assistant superintendent. The school board hired attorney Richard A. Harper in 2004 to review a state audit critical of the district and DeRosa.
The audit outlined DeRosa’s gambling activities, which allowed him to obtain free hotel rooms for board members attending a 2002 conference; issues regarding travel while representing the district; his failure to disclose financial interests; and food purchases he made from the district without prior approval.
Harper’s report became a critique of DeRosa’s shortcomings as an administrator.
His retirement in July 2006 created a stir when it was disclosed he would receive approximately $69,000 for unused sick and vacation days. That amount was in addition to the $40,000 he was paid as part of the district’s retirement package for administrators.
DeRosa’s pension is estimated to be $100,000 annually.
In addition to his North Cascade Street home, DeRosa is a part-owner of a condominium in Collier County, Fla. The property is valued at approximately $98,000.
“I have very little money and little reputation to speak of left,” DeRosa said. “I am older than I want to be.”
Friday, February 18, 2011
Parent lashes out at Razzano
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
The controversy involving New Castle’s youth football program and the district’s head football coach spilled onto the basketball court.
The parent of a high school student denounced board member Barbara Razzano for an alleged verbal confrontation Feb. 11 at the girls and boys varsity contests against Ambridge in the Ne-Ca-Hi Field House. Pat Minenok detailed his complaint during Wednesday night’s regular school board meeting.
Minenok said his daughter, Lauren, was preparing to sing the national anthem when Razzano approached him about remarks he made during a youth football banquet last week.
“This was a special night,” he said. “My daughter’s first and only Senior Night.
“(Razzano’s) bent over, and she’s in my face. She’s distracting me and my family. I can’t believe she thought this was an appropriate time and place to have this conversation.”
Minenok is an assistant varsity football coach on Frank Bongivengo Jr.’s staff. He also serves as commissioner for the youth program that Bongivengo oversees in an advisory role.
BACKGROUND
Razzano has been seeking documents related to the program while it has been under Bongivengo’s direction. She filed a Right to Know request with the district.
Unsatisfied with its response, she went to state Office of Open Records. The agency ordered the district to comply, which solicitor Charles Sapienza said it has done, despite not having the records in its possession. In April, the sides will appear in Lawrence County common pleas court as Razzano pursues an enforcement order.
The state Attorney General’s Office is reviewing a potential criminal case against the head coach.
“I’m not one to lower myself and explain everything,” Razzano said. “There was a presentation made by Mr. Minenok that I thought was very inappropriate.
“Many people did approach me and say it was appalling about what he said at that banquet. When I approached him, it wasn’t during the national anthem.
Minenok attempted to correct her and said the event did not take place while his daughter was singing.
“I said it was just before,” he said.
THE BANQUET
The banquet occurred two days earlier at George Washington Intermediate Elementary School. Minenok said he mentioned Razzano’s name regarding rumors about the program. He then noted where she lived in relationship to George Washington, where youth teams practice. The Bongivengos and Minenoks, who are neighbors, have homes by the school and can see Razzano’s house from their front yards.
Minenok said when Razzano approached him he didn’t want to talk. He reportedly asked Razzano several times to leave.
“Why did I mention her name? There was a rumor circulating about the program that I wanted to stop,” he said. “I know for a fact they were false and that she’s the woman in the paper with her face, her picture, her name in regards to the football program.
“Why did I mention where she lived? ... I thought it was very unusual that if (Razzano) had any genuine concerns about our program why (she) wouldn’t just walk out (her) back door and come and ask me.”
The board member said she acted properly.
“I was not screaming. All I did was I asked (Minenok) to clarify what was said at that banquet, which I think I needed to know. If you’re talking about me and a Razzano clique, then I should be aware of what you are saying about me.”
Minenok said Razzano spoiled his daughter’s Senior Night.
“This woman intruded upon our family time. Now the focus has been removed from my daughter and now it’s on her.
“If she has any class, any dignity, any professionalism, she will apologize to my daughter for ruining her Senior Night.”
Minenok said if Razzano couldn’t control her emotions, she should resign her position on the board.
Razzano countered that Minenok’s actions should be scrutinized. She said his comments represented an opinion of her open records lawsuit against the district.
RESIGN?
“I don’t believe there is any place for an assistant varsity football coach and commissioner of the New Castle youth football program to make a speech concerning a matter being investigated by the state Attorney General at a venue such as this,” she said.
“Now, who is the one that should resign?”
Razzano also rejected the assertion she marred Lauren Minenok’s experience.
“Well, I thought his daughter, Lauren, did a magnificent job singing the national anthem as usual. I witnessed her performance while sitting next to my friends in my own seat — not next to Pat Minenok.”
Minenok’s wife, Roberta, said she was unnerved by the event.
“I feel very threatened,” she said. “What is stopping her from continuing this type of behavior?”
Pat Minenok said his attorney sent a letter to Razzano telling her to stay away from him and his family.
Superintendent George Gabriel asked Sapienza to determine if any violation of the district’s code of conduct occurred.
After the meeting, Minenok phoned The News to say he received a call from an unidentified male, who told him to watch his back. Minenok said he contacted the city police to file a report.
plitowitz@ncnewsonline.com
The controversy involving New Castle’s youth football program and the district’s head football coach spilled onto the basketball court.
The parent of a high school student denounced board member Barbara Razzano for an alleged verbal confrontation Feb. 11 at the girls and boys varsity contests against Ambridge in the Ne-Ca-Hi Field House. Pat Minenok detailed his complaint during Wednesday night’s regular school board meeting.
Minenok said his daughter, Lauren, was preparing to sing the national anthem when Razzano approached him about remarks he made during a youth football banquet last week.
“This was a special night,” he said. “My daughter’s first and only Senior Night.
“(Razzano’s) bent over, and she’s in my face. She’s distracting me and my family. I can’t believe she thought this was an appropriate time and place to have this conversation.”
Minenok is an assistant varsity football coach on Frank Bongivengo Jr.’s staff. He also serves as commissioner for the youth program that Bongivengo oversees in an advisory role.
BACKGROUND
Razzano has been seeking documents related to the program while it has been under Bongivengo’s direction. She filed a Right to Know request with the district.
Unsatisfied with its response, she went to state Office of Open Records. The agency ordered the district to comply, which solicitor Charles Sapienza said it has done, despite not having the records in its possession. In April, the sides will appear in Lawrence County common pleas court as Razzano pursues an enforcement order.
The state Attorney General’s Office is reviewing a potential criminal case against the head coach.
“I’m not one to lower myself and explain everything,” Razzano said. “There was a presentation made by Mr. Minenok that I thought was very inappropriate.
“Many people did approach me and say it was appalling about what he said at that banquet. When I approached him, it wasn’t during the national anthem.
Minenok attempted to correct her and said the event did not take place while his daughter was singing.
“I said it was just before,” he said.
THE BANQUET
The banquet occurred two days earlier at George Washington Intermediate Elementary School. Minenok said he mentioned Razzano’s name regarding rumors about the program. He then noted where she lived in relationship to George Washington, where youth teams practice. The Bongivengos and Minenoks, who are neighbors, have homes by the school and can see Razzano’s house from their front yards.
Minenok said when Razzano approached him he didn’t want to talk. He reportedly asked Razzano several times to leave.
“Why did I mention her name? There was a rumor circulating about the program that I wanted to stop,” he said. “I know for a fact they were false and that she’s the woman in the paper with her face, her picture, her name in regards to the football program.
“Why did I mention where she lived? ... I thought it was very unusual that if (Razzano) had any genuine concerns about our program why (she) wouldn’t just walk out (her) back door and come and ask me.”
The board member said she acted properly.
“I was not screaming. All I did was I asked (Minenok) to clarify what was said at that banquet, which I think I needed to know. If you’re talking about me and a Razzano clique, then I should be aware of what you are saying about me.”
Minenok said Razzano spoiled his daughter’s Senior Night.
“This woman intruded upon our family time. Now the focus has been removed from my daughter and now it’s on her.
“If she has any class, any dignity, any professionalism, she will apologize to my daughter for ruining her Senior Night.”
Minenok said if Razzano couldn’t control her emotions, she should resign her position on the board.
Razzano countered that Minenok’s actions should be scrutinized. She said his comments represented an opinion of her open records lawsuit against the district.
RESIGN?
“I don’t believe there is any place for an assistant varsity football coach and commissioner of the New Castle youth football program to make a speech concerning a matter being investigated by the state Attorney General at a venue such as this,” she said.
“Now, who is the one that should resign?”
Razzano also rejected the assertion she marred Lauren Minenok’s experience.
“Well, I thought his daughter, Lauren, did a magnificent job singing the national anthem as usual. I witnessed her performance while sitting next to my friends in my own seat — not next to Pat Minenok.”
Minenok’s wife, Roberta, said she was unnerved by the event.
“I feel very threatened,” she said. “What is stopping her from continuing this type of behavior?”
Pat Minenok said his attorney sent a letter to Razzano telling her to stay away from him and his family.
Superintendent George Gabriel asked Sapienza to determine if any violation of the district’s code of conduct occurred.
After the meeting, Minenok phoned The News to say he received a call from an unidentified male, who told him to watch his back. Minenok said he contacted the city police to file a report.
Thursday, February 17, 2011
Judge rejects district’s effort to dismiss lawsuit
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Judge J. Craig Cox rejected a motion Monday to dismiss a lawsuit seeking the enforcement of an open records ruling.
The Lawrence County common pleas judge denied the New Castle school system’s request. Cox did not provide an opinion with his ruling.
A hearing involving the district and board member Barbara Razzano will take place at 9:30 a.m. April 4.
Razzano’s attorney, Ronald D. Barber, petitioned the court in January to require the district to comply with the state Office of Open Records ruling. Razzano wanted paperwork associated with the operation of the city’s youth football league, which is supervised by Red Hurricane head coach Frank Bongivengo Jr.
The state agency backed Razzano in a April 12, 2010, finding. Although the agency lacks enforcement powers, its rulings are binding. Razzano filed her enforcement petition nine months after the agency’s decision.
In court paperwork, district solicitor Charles Sapienza maintained the district did all in its power to comply with Razzano’s request. He added the school system did not possess, control or create the records.
The information given to her came from Bongivengo and board member Mark Kirkwood.
Sapienza also argued that Razzano had engaged in “litigation without limitation.”
He noted the state’s Right to Know Law does not permit filings to the common pleas court 30 days after an appeal period.
“(Razzano) cannot nor should not have an indeterminate amount of time to file (her) petition,” he wrote.
The Pennsylvania State Police conducted an investigation of Bongivengo. On Jan. 12, county District Attorney Joshua Lamancusa said he asked the state Attorney General’s Office to pursue criminal prosecution.
As of yesterday, no charges have been filed.
plitowitz@ncnewsonline.com
Judge J. Craig Cox rejected a motion Monday to dismiss a lawsuit seeking the enforcement of an open records ruling.
The Lawrence County common pleas judge denied the New Castle school system’s request. Cox did not provide an opinion with his ruling.
A hearing involving the district and board member Barbara Razzano will take place at 9:30 a.m. April 4.
Razzano’s attorney, Ronald D. Barber, petitioned the court in January to require the district to comply with the state Office of Open Records ruling. Razzano wanted paperwork associated with the operation of the city’s youth football league, which is supervised by Red Hurricane head coach Frank Bongivengo Jr.
The state agency backed Razzano in a April 12, 2010, finding. Although the agency lacks enforcement powers, its rulings are binding. Razzano filed her enforcement petition nine months after the agency’s decision.
In court paperwork, district solicitor Charles Sapienza maintained the district did all in its power to comply with Razzano’s request. He added the school system did not possess, control or create the records.
The information given to her came from Bongivengo and board member Mark Kirkwood.
Sapienza also argued that Razzano had engaged in “litigation without limitation.”
He noted the state’s Right to Know Law does not permit filings to the common pleas court 30 days after an appeal period.
“(Razzano) cannot nor should not have an indeterminate amount of time to file (her) petition,” he wrote.
The Pennsylvania State Police conducted an investigation of Bongivengo. On Jan. 12, county District Attorney Joshua Lamancusa said he asked the state Attorney General’s Office to pursue criminal prosecution.
As of yesterday, no charges have been filed.
Bat may hamper school district’s project
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
New Castle school officials unearthed an endangered species while mapping plans for a $19 million renovation project.
The U.S. Fish and Wildlife Service placed a temporary “Do Not Disturb” sign on 20 acres the district is obtaining through eminent domain.
The Harry W. Lockley Early Learning Center is located within the 10-mile hibernation and nesting area of the Indiana bat. In a letter dated Friday, the agency advised of the bat’s designation, which has been listed as endangered since 1967.
David Esposito of Eckles Architecture & Engineering discussed the development during the school board’s work session Tuesday. He said the bat’s presence may slow the project.
“It’s the tiniest of little things,” Esposito said.
On its website, the agency said the bat weighs no more than three pennies but has a wingspan between 9 to 11 inches. Found in the eastern part of the country, its population numbers approximately 387,000 as of 2009. During the summer, the bats live underneath the bark of dying or dead trees.
Between April 1 and Nov. 15, the district isn’t permitted to remove trees wider than 5 inches in diameter.
“I’ve never gone this far (in a project) where there’s been a (federal) prohibition,” Esposito said. “The site in Grove City had rattlesnakes, and I had some kind of frog in Venango County that triggered a hit. But it turned out it wasn’t there.”
Of the 20 acres, the district’s concern centers on one acre. Esposito said the district will contact the Fish and Wildlife Service to receive its permission to clear that section.
The agency said the project “will not have a significant adverse affect on the overall habitat quality for the Indiana bat.”
During last night’s regular session, the board voted 8-1 to obtain the land adjacent to the current Harry W. Lockley Kindergarten Center through eminent domain. Barbara Razzano, who voted against the project when it was first proposed, opposed the move.
New Castle offered Solid Rock Ministry $90,000, which was the higher of two appraisals the district obtained. The owner countered with an asking price of $125,000.
Charles Sapienza, the district’s solicitor, said the sides will continue to negotiate on a price. If an agreement can’t be reached, the dispute will be heard by a review board created by the Lawrence County common pleas court.
The district conducted a special meeting Tuesday for public comment about the land acquisition. No members of the public attended.
plitowitz@ncnewsonline.com
New Castle school officials unearthed an endangered species while mapping plans for a $19 million renovation project.
The U.S. Fish and Wildlife Service placed a temporary “Do Not Disturb” sign on 20 acres the district is obtaining through eminent domain.
The Harry W. Lockley Early Learning Center is located within the 10-mile hibernation and nesting area of the Indiana bat. In a letter dated Friday, the agency advised of the bat’s designation, which has been listed as endangered since 1967.
David Esposito of Eckles Architecture & Engineering discussed the development during the school board’s work session Tuesday. He said the bat’s presence may slow the project.
“It’s the tiniest of little things,” Esposito said.
On its website, the agency said the bat weighs no more than three pennies but has a wingspan between 9 to 11 inches. Found in the eastern part of the country, its population numbers approximately 387,000 as of 2009. During the summer, the bats live underneath the bark of dying or dead trees.
Between April 1 and Nov. 15, the district isn’t permitted to remove trees wider than 5 inches in diameter.
“I’ve never gone this far (in a project) where there’s been a (federal) prohibition,” Esposito said. “The site in Grove City had rattlesnakes, and I had some kind of frog in Venango County that triggered a hit. But it turned out it wasn’t there.”
Of the 20 acres, the district’s concern centers on one acre. Esposito said the district will contact the Fish and Wildlife Service to receive its permission to clear that section.
The agency said the project “will not have a significant adverse affect on the overall habitat quality for the Indiana bat.”
During last night’s regular session, the board voted 8-1 to obtain the land adjacent to the current Harry W. Lockley Kindergarten Center through eminent domain. Barbara Razzano, who voted against the project when it was first proposed, opposed the move.
New Castle offered Solid Rock Ministry $90,000, which was the higher of two appraisals the district obtained. The owner countered with an asking price of $125,000.
Charles Sapienza, the district’s solicitor, said the sides will continue to negotiate on a price. If an agreement can’t be reached, the dispute will be heard by a review board created by the Lawrence County common pleas court.
The district conducted a special meeting Tuesday for public comment about the land acquisition. No members of the public attended.
Tuesday, February 8, 2011
School board narrows field to four companies
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
New Castle’s school board will consider four Pittsburgh firms to serve as construction manager of the district’s early learning center.
In its special session Wednesday, the board selected Massaro Construction Management Services, Chronicle Consulting LLC, P.J. Dick Inc. and Thomas & Williamson to deliver presentations. The board will interview the companies during a two-day period. The dates have not been announced.
The hiring of a construction manager is the next step in the district’s $19 million renovation of the Harry W. Lockley Kindergarten Center into the H.W. Lockley Early Childhood Learning Center. The facility will house kindergarten through second-grade students.
The board had hired John M. Pappas of Eckles Construction Services as consultant. He ranked seven firms in eight categories.
“I had to find a way to be able to analyze it based on a set group of criteria,” Pappas said. “Every firm is different.
“(The system) took the companies with the most experience and the people with the most experience and elevated them to the top. It didn’t necessarily looked at them based on fee.”
Each segment ranged from zero to five points. Three areas focused on fees, hours needed to perform the work and the company’s distance from New Castle. Four categories centered on the company and its employees experience with Pennsylvania school projects. Lastly, the company’s thoroughness in completing its proposal was addressed.
The scores for the Pittsburgh firms ranged from 23 to 27 points. The three remaining businesses were ranked as follows: GP Construction Inc., Edinburg, (16); Scaparotti Construction Group, Cleveland, (13); and Pathline Inc., Altoona (12).
Board member Brad Olson and Anna Pascarella questioned the placement of Scaparotti Construction.
“They would be in the top one or two as far as construction experience.” Pappas said.
However, the business’ school projects were done in Ohio.
“(Ohio’s) system is just different,” he said. “It’s not how it works here.”
Olson said Scaparotti representatives should be permitted an interview.
“We are basically assuming they may struggle with some of the differences,” he said. “To exclude them because we don’t know whether they are able to handle the red tape in Pennsylvania without providing them an opportunity to respond to that I believe that’s unfair.”
Prior to determining which companies would be selected, board President Allan Joseph asked that Eckles Construction be included in the interview process.
Joseph asked Pappas to leave the board room before making the suggestion. Because the meeting was public, Pappas could have ignored the request but agreed to step out.
“They’re the lowest price,” Joseph said. “They’re the closest ones here. They’ve done other school projects for us before.”
Eckles Construction Services submitted a bid of $320,000. However, the board asked the firm to retract its proposal to avoid the appearance of a conflict of interest.
Eckles Architecture & Engineering is handling the architectural part of the project.
The two businesses are separate entities but have overlapping ownership interests.
“Price-wise, experience-wise, they’re probably there at the top,” Joseph. “I just wanted to throw it out in case anyone wanted to think about it or consider it.”
The board declined the request in a polling of the seven members present.
plitowitz@ncnewsonline.com
New Castle’s school board will consider four Pittsburgh firms to serve as construction manager of the district’s early learning center.
In its special session Wednesday, the board selected Massaro Construction Management Services, Chronicle Consulting LLC, P.J. Dick Inc. and Thomas & Williamson to deliver presentations. The board will interview the companies during a two-day period. The dates have not been announced.
The hiring of a construction manager is the next step in the district’s $19 million renovation of the Harry W. Lockley Kindergarten Center into the H.W. Lockley Early Childhood Learning Center. The facility will house kindergarten through second-grade students.
The board had hired John M. Pappas of Eckles Construction Services as consultant. He ranked seven firms in eight categories.
“I had to find a way to be able to analyze it based on a set group of criteria,” Pappas said. “Every firm is different.
“(The system) took the companies with the most experience and the people with the most experience and elevated them to the top. It didn’t necessarily looked at them based on fee.”
Each segment ranged from zero to five points. Three areas focused on fees, hours needed to perform the work and the company’s distance from New Castle. Four categories centered on the company and its employees experience with Pennsylvania school projects. Lastly, the company’s thoroughness in completing its proposal was addressed.
The scores for the Pittsburgh firms ranged from 23 to 27 points. The three remaining businesses were ranked as follows: GP Construction Inc., Edinburg, (16); Scaparotti Construction Group, Cleveland, (13); and Pathline Inc., Altoona (12).
Board member Brad Olson and Anna Pascarella questioned the placement of Scaparotti Construction.
“They would be in the top one or two as far as construction experience.” Pappas said.
However, the business’ school projects were done in Ohio.
“(Ohio’s) system is just different,” he said. “It’s not how it works here.”
Olson said Scaparotti representatives should be permitted an interview.
“We are basically assuming they may struggle with some of the differences,” he said. “To exclude them because we don’t know whether they are able to handle the red tape in Pennsylvania without providing them an opportunity to respond to that I believe that’s unfair.”
Prior to determining which companies would be selected, board President Allan Joseph asked that Eckles Construction be included in the interview process.
Joseph asked Pappas to leave the board room before making the suggestion. Because the meeting was public, Pappas could have ignored the request but agreed to step out.
“They’re the lowest price,” Joseph said. “They’re the closest ones here. They’ve done other school projects for us before.”
Eckles Construction Services submitted a bid of $320,000. However, the board asked the firm to retract its proposal to avoid the appearance of a conflict of interest.
Eckles Architecture & Engineering is handling the architectural part of the project.
The two businesses are separate entities but have overlapping ownership interests.
“Price-wise, experience-wise, they’re probably there at the top,” Joseph. “I just wanted to throw it out in case anyone wanted to think about it or consider it.”
The board declined the request in a polling of the seven members present.
Monday, February 7, 2011
Jersey Sure
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Brian Caiazza wondered what call to make.
Pittsburgh trailed Green Bay, 28-25, with four minutes left in Super Bowl XLV. Was this the time to bring his employees into work?
Before he decided, Packers quarterback Aaron Rodgers hit James Jones on a 21-yard pass to the Pittsburgh 8. Four plays later, a field goal increased Green Bay’s lead to six points.
Caiazza waited.
“T-shirts are a pretty stressful business,” the owner of New Wilmington-based Cazzco said.
Cazzco specializes in the silk-screening, embroidery and design of garments. On Super Bowl Sunday, the business became a “hot market” contractor for Vanity Fair Clothing, which is licensed to sell NFL merchandise.
“We print for everybody within 100 miles of us that Vanity Fair holds a license to,” Caiazza said. “If the Indians, the Pirates, the Steelers, the Cavs, the Penguins, the Browns ... if any of those people go to a championship game, and Vanity Fair wants to make money on it or wants to sell merchandise, they look to us.
“Guys like us will wait until the win. Basically, the contract is, Vanity Fair gives you the (merchandise), now wait. You’re not allowed to do anything until the game ends.”
A Pittsburgh victory allows Cazzco’s equipment to print NFL-approved, championship T-shirts. As the two-minute warning neared, Vanity Fair’s NFL representative knocked at the door.
He held the holographic stickers that transform a regular garment into league-approved apparel. He attaches a sticker to each T-shirt. They are packaged and delivered to a central hub.
“You’re here at the perfect time,” said Brian’s father, Butch.
Brian Caiazza looked at the newly arrived guest.
“You want me to call everyone in?”
The logo for the championship shirt was made long before the Steelers advanced to the Super Bowl. A blizzard delayed the T-shirts’ arrival from Chicago to Friday. A test run later that day produced four samples.
With the game clock at 1:59, Butch Caiazza took his young grandson’s arms and fashioned them into a touchdown signal.
Days before the game, the elder Caiazza said he had put everything into perspective. A Pittsburgh win would be nice — the company sells products at nationwide events — but if Green Bay comes out on top, that’s OK. At least Dallas isn’t playing, he said.
With 56 seconds left and Pittsburgh facing a fourth-and-5, he changed his mind.
“Oh yes, it’s that important.”
An incomplete pass and Brian Caiazza’s decision had been made.
“It’s been real,” the NFL rep said. A few moments later, he was out the door.
Butch Caiazza, who remained in his chair, smacked his hands.
“It’s so sad,” he said. “Onto the Penguins.”
plitowitz@ncnewsonline.com
Brian Caiazza wondered what call to make.
Pittsburgh trailed Green Bay, 28-25, with four minutes left in Super Bowl XLV. Was this the time to bring his employees into work?
Before he decided, Packers quarterback Aaron Rodgers hit James Jones on a 21-yard pass to the Pittsburgh 8. Four plays later, a field goal increased Green Bay’s lead to six points.
Caiazza waited.
“T-shirts are a pretty stressful business,” the owner of New Wilmington-based Cazzco said.
Cazzco specializes in the silk-screening, embroidery and design of garments. On Super Bowl Sunday, the business became a “hot market” contractor for Vanity Fair Clothing, which is licensed to sell NFL merchandise.
“We print for everybody within 100 miles of us that Vanity Fair holds a license to,” Caiazza said. “If the Indians, the Pirates, the Steelers, the Cavs, the Penguins, the Browns ... if any of those people go to a championship game, and Vanity Fair wants to make money on it or wants to sell merchandise, they look to us.
“Guys like us will wait until the win. Basically, the contract is, Vanity Fair gives you the (merchandise), now wait. You’re not allowed to do anything until the game ends.”
A Pittsburgh victory allows Cazzco’s equipment to print NFL-approved, championship T-shirts. As the two-minute warning neared, Vanity Fair’s NFL representative knocked at the door.
He held the holographic stickers that transform a regular garment into league-approved apparel. He attaches a sticker to each T-shirt. They are packaged and delivered to a central hub.
“You’re here at the perfect time,” said Brian’s father, Butch.
Brian Caiazza looked at the newly arrived guest.
“You want me to call everyone in?”
The logo for the championship shirt was made long before the Steelers advanced to the Super Bowl. A blizzard delayed the T-shirts’ arrival from Chicago to Friday. A test run later that day produced four samples.
With the game clock at 1:59, Butch Caiazza took his young grandson’s arms and fashioned them into a touchdown signal.
Days before the game, the elder Caiazza said he had put everything into perspective. A Pittsburgh win would be nice — the company sells products at nationwide events — but if Green Bay comes out on top, that’s OK. At least Dallas isn’t playing, he said.
With 56 seconds left and Pittsburgh facing a fourth-and-5, he changed his mind.
“Oh yes, it’s that important.”
An incomplete pass and Brian Caiazza’s decision had been made.
“It’s been real,” the NFL rep said. A few moments later, he was out the door.
Butch Caiazza, who remained in his chair, smacked his hands.
“It’s so sad,” he said. “Onto the Penguins.”
Thursday, February 3, 2011
Ellwood City dismisses injury claim
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
An Ellwood City police officer kept his composure while dealing with an erratic suspect, the borough’s solicitor said.
Edward Leymarie Jr. rejected Vicki Marie Kenney’s claim that Officer Michael McBride used excessive force and placed her under false arrest after a traffic stop on May 30, 2009. The 46-year-old Zelienople resident filed suit against the borough and McBride on Dec. 30 in U.S. District Court, downtown Pittsburgh.
“Not once did she come in here and say excessive force was used,” said Lt. Dave Kingston, who headed the department at the time. “The first we ever heard about it was the letter we received.
“Most of the people know Mike and know he’s a level-headed person.”
McBride had stopped a car that had left a Franklin Avenue club 15 minutes earlier. Kenney and her boyfriend, Jason Patrick Roberts, 49, were passengers in a car driven by Joshua Robert Shurtz, 21. The three were borough residents when the incident took place.
McBride chased the vehicle after it swerved and struck parked vehicles, Leymarie wrote in the borough’s response filed Jan. 20. McBride also saw drugs being tossed from the vehicle.
“She was actively attempting to hide money and drugs in the vehicle, so she was taken into custody,” Kingston said.
Kenney’s attorney, Gianni Floro of Moon Township, said his client was injured while in custody. He claims that during an interrogation, McBride injured Kenney’s arms, tore her left rotator cup and caused psychological trauma.
“She was the one that was jumping up out of the chair and had to be controlled,” Kingston said. “She never complained to the Ellwood City police department ever that she was hurt in any way after the arrest.”
Kingston said McBride used a “soft-hand control technique.” That happened when Kenney reportedly became “irrational and unreasonable while being questioned by Officer McBride,” according to court paperwork.
Kingston said he questioned McBride and two officers separately after the event.
“I believe he acted accordingly and didn’t violate any policies,” he said. “Officer Chris Hardy told me Mike handled the situation appropriately.
“If she had just complied, sat there and been calm, no force whatsoever would have been used.”
Kenney faced two drug-related charges, which were withdrawn. Roberts pleaded guilty to a misdemeanor count of possession. He was sentenced to the 16 days that he served in the Lawrence County jail and given 30 days probation.
Shurtz, who was charged with six offenses, pleaded guilty to DUI. He was placed under house arrest for seven days, served community service and ordered to forfeit approximately $600 and his 2002 Volvo.
Kenney, who wants a jury trial, is seeking in excess of $75,000. The parties are scheduled to meet March 3.
“We’re cognizant that we can be sued at any time,” Kingston said. “Most of them are frivolous.”
plitowitz@ncnewsonline.com
An Ellwood City police officer kept his composure while dealing with an erratic suspect, the borough’s solicitor said.
Edward Leymarie Jr. rejected Vicki Marie Kenney’s claim that Officer Michael McBride used excessive force and placed her under false arrest after a traffic stop on May 30, 2009. The 46-year-old Zelienople resident filed suit against the borough and McBride on Dec. 30 in U.S. District Court, downtown Pittsburgh.
“Not once did she come in here and say excessive force was used,” said Lt. Dave Kingston, who headed the department at the time. “The first we ever heard about it was the letter we received.
“Most of the people know Mike and know he’s a level-headed person.”
McBride had stopped a car that had left a Franklin Avenue club 15 minutes earlier. Kenney and her boyfriend, Jason Patrick Roberts, 49, were passengers in a car driven by Joshua Robert Shurtz, 21. The three were borough residents when the incident took place.
McBride chased the vehicle after it swerved and struck parked vehicles, Leymarie wrote in the borough’s response filed Jan. 20. McBride also saw drugs being tossed from the vehicle.
“She was actively attempting to hide money and drugs in the vehicle, so she was taken into custody,” Kingston said.
Kenney’s attorney, Gianni Floro of Moon Township, said his client was injured while in custody. He claims that during an interrogation, McBride injured Kenney’s arms, tore her left rotator cup and caused psychological trauma.
“She was the one that was jumping up out of the chair and had to be controlled,” Kingston said. “She never complained to the Ellwood City police department ever that she was hurt in any way after the arrest.”
Kingston said McBride used a “soft-hand control technique.” That happened when Kenney reportedly became “irrational and unreasonable while being questioned by Officer McBride,” according to court paperwork.
Kingston said he questioned McBride and two officers separately after the event.
“I believe he acted accordingly and didn’t violate any policies,” he said. “Officer Chris Hardy told me Mike handled the situation appropriately.
“If she had just complied, sat there and been calm, no force whatsoever would have been used.”
Kenney faced two drug-related charges, which were withdrawn. Roberts pleaded guilty to a misdemeanor count of possession. He was sentenced to the 16 days that he served in the Lawrence County jail and given 30 days probation.
Shurtz, who was charged with six offenses, pleaded guilty to DUI. He was placed under house arrest for seven days, served community service and ordered to forfeit approximately $600 and his 2002 Volvo.
Kenney, who wants a jury trial, is seeking in excess of $75,000. The parties are scheduled to meet March 3.
“We’re cognizant that we can be sued at any time,” Kingston said. “Most of them are frivolous.”
Saturday, January 29, 2011
Pair charged in Hillsville skirmish
Jan. 19, 2011
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
If a thief appeared to be taunting his victims, it worked.
Two stolen televisions and a missing dog triggered a New Year’s Day fight in Hillsville.
Pennsylvania State Police said Amanda Marie Berresford, 23, of Oakdale Road, Darlington, and Mark David Gates, 30, of West Main Street, Hillsville, went to a neighbor’s house on Churchill Road looking for the man they claimed was responsible.
Instead of finding the culprit, Berresford and Gates ended up each being charged with eight offenses that include burglary, simple assault and harassment.
Gates told police that a year before, someone had entered his house and left with a JVC television. The person reportedly struck once more.
When they returned from a 2011 New Year’s party at a local club, Berresford noticed instructions for the old TV taped to a door. Gates then discovered the replacement TV gone and his dog had disappeared.
Police said Berresford then went into Christopher David List’s home during the early hours of Jan. 1. He told her the man she and Gates were looking for had left 15 minutes earlier.
“I told her I had no idea where (the man) went, or about a TV,” List told police.
Berresford left and then came back with Gates. Court paperwork said the quarrel escalated into a fight among Berresford, Gates, List and Mathew Robert Bohn, who also lives at List’s home. An unidentified woman and two children were in the house when the altercation took place.
Both groups claimed the other started the fight.
A fifth person, Thomas Franklin Weatherly, had been upstairs sleeping when the commotion began. Weatherly said he heard threats involving List being killed. He came downstairs with an unloaded rifle, police said.
“I got a gun, get out,” he reportedly yelled.
Police said Berresford knocked the weapon from Weatherly, and she began to choke him. Berresford and Gates fled after Weatherly warned again he would use the gun.
Police noted Weatherly was the only sober person among the five participants.
The preliminary hearings for Berresford and Gates are scheduled for 9:30 a.m. Tuesday in Lawrence County Central Court.
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
If a thief appeared to be taunting his victims, it worked.
Two stolen televisions and a missing dog triggered a New Year’s Day fight in Hillsville.
Pennsylvania State Police said Amanda Marie Berresford, 23, of Oakdale Road, Darlington, and Mark David Gates, 30, of West Main Street, Hillsville, went to a neighbor’s house on Churchill Road looking for the man they claimed was responsible.
Instead of finding the culprit, Berresford and Gates ended up each being charged with eight offenses that include burglary, simple assault and harassment.
Gates told police that a year before, someone had entered his house and left with a JVC television. The person reportedly struck once more.
When they returned from a 2011 New Year’s party at a local club, Berresford noticed instructions for the old TV taped to a door. Gates then discovered the replacement TV gone and his dog had disappeared.
Police said Berresford then went into Christopher David List’s home during the early hours of Jan. 1. He told her the man she and Gates were looking for had left 15 minutes earlier.
“I told her I had no idea where (the man) went, or about a TV,” List told police.
Berresford left and then came back with Gates. Court paperwork said the quarrel escalated into a fight among Berresford, Gates, List and Mathew Robert Bohn, who also lives at List’s home. An unidentified woman and two children were in the house when the altercation took place.
Both groups claimed the other started the fight.
A fifth person, Thomas Franklin Weatherly, had been upstairs sleeping when the commotion began. Weatherly said he heard threats involving List being killed. He came downstairs with an unloaded rifle, police said.
“I got a gun, get out,” he reportedly yelled.
Police said Berresford knocked the weapon from Weatherly, and she began to choke him. Berresford and Gates fled after Weatherly warned again he would use the gun.
Police noted Weatherly was the only sober person among the five participants.
The preliminary hearings for Berresford and Gates are scheduled for 9:30 a.m. Tuesday in Lawrence County Central Court.
Ellwood 'pack rat' sentenced in firearms case
Jan. 14, 2011
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A judge rejected an argument that an Ellwood City felon’s “unique history” as a pack rat should result in probation.
Yesterday, Senior U.S. District Judge Maurice B. Cohill sentenced Dean Huzinec to four years in prison for violating federal firearms and explosives laws.
Huzinec pleaded guilty June 30, 2010, to possessing a firearm by a convicted felon and possession of an explosive.
U.S. Attorney David J. Hickton’s office announced the penalty against the 49-year-old Huzinec.
According to court records, the Fire Street resident possessed 19 firearms, a firearm silencer and explosive material on Aug. 17, 2008.
Calling her client a tinkerer, attorney Linda E. J. Cohn said Huzinec “collects anything that he can fix up and re-sell or re-use himself.”
“Although he should not possess firearms, he is far from being a person who stockpiles weapons or possesses them for any sinister purpose,” she wrote in her sentencing report.
Cohn, an assistant federal public defender, said Huzinec knew he shouldn’t have had the weapons.
“Several of the firearms in this case were registered to his ex-girlfriend,” she continued. “Other firearms were old guns that had belonged to his father, and a couple of them were at his house because he was trying to fix them for other people.
“Mr. Huzinec freely admits that he bought a number of the firearms at flea markets.”
Assistant U.S. Attorney Craig W. Haller wrote in his response Huzinec knew his collection of weapons violated the law.
“The need for deterrence is quite apparent in light of Mr. Huzinec’s decision to pursue his interest in firearms and explosive material instead of demonstrating respect for the laws — laws Mr. Huzinec was very familiar with,” Haller said. “To Mr. Huzinec’s credit, he acknowledged his responsibility for his collection of guns and explosive material readily and repeatedly after he was arrested.”
The investigation included the following departments: the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Franklin Township Police Department; the Allegheny County Police Department Bomb Squad; the Beaver County District Attorney's Office; the Pennsylvania State Police; and the Ellwood City police.
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A judge rejected an argument that an Ellwood City felon’s “unique history” as a pack rat should result in probation.
Yesterday, Senior U.S. District Judge Maurice B. Cohill sentenced Dean Huzinec to four years in prison for violating federal firearms and explosives laws.
Huzinec pleaded guilty June 30, 2010, to possessing a firearm by a convicted felon and possession of an explosive.
U.S. Attorney David J. Hickton’s office announced the penalty against the 49-year-old Huzinec.
According to court records, the Fire Street resident possessed 19 firearms, a firearm silencer and explosive material on Aug. 17, 2008.
Calling her client a tinkerer, attorney Linda E. J. Cohn said Huzinec “collects anything that he can fix up and re-sell or re-use himself.”
“Although he should not possess firearms, he is far from being a person who stockpiles weapons or possesses them for any sinister purpose,” she wrote in her sentencing report.
Cohn, an assistant federal public defender, said Huzinec knew he shouldn’t have had the weapons.
“Several of the firearms in this case were registered to his ex-girlfriend,” she continued. “Other firearms were old guns that had belonged to his father, and a couple of them were at his house because he was trying to fix them for other people.
“Mr. Huzinec freely admits that he bought a number of the firearms at flea markets.”
Assistant U.S. Attorney Craig W. Haller wrote in his response Huzinec knew his collection of weapons violated the law.
“The need for deterrence is quite apparent in light of Mr. Huzinec’s decision to pursue his interest in firearms and explosive material instead of demonstrating respect for the laws — laws Mr. Huzinec was very familiar with,” Haller said. “To Mr. Huzinec’s credit, he acknowledged his responsibility for his collection of guns and explosive material readily and repeatedly after he was arrested.”
The investigation included the following departments: the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Franklin Township Police Department; the Allegheny County Police Department Bomb Squad; the Beaver County District Attorney's Office; the Pennsylvania State Police; and the Ellwood City police.
District’s consultant fees drop
Jan. 13, 2011
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A revised proposal will trim $2,000 in consultant fees that the New Castle Area School District has to pay.
During its regular session last night, the school board voted 6-3 to hire John M. Pappas of Eckles Construction Services. Pappas will advise the district in the selection of a construction manager to oversee a $19 million renovation and creation of an early learning center at the site of the Harry W. Lockley Kindergarten Center.
The district originally negotiated a $6,500 contract. Pappas would have reviewed 16 of the 18 proposals submitted.
When the board agreed to reject bids exceeding $500,000, that left seven companies to consider. Board member Brad Olson proposed that Pappas lower his fee.
“I just renegotiated with a smaller scope of work,” business manager Joseph Ambrosini said. “He didn’t need to put in the time for those over $500,000.”
Pappas reduced his the cost of his services to $4,500.
Board members J. Allan Joseph, Karen Humphrey, Fred Mozzocio, Mary Ann Tofel, Anna Pascarella and Olson voted for the contract. Mark Kirkwood, Dr. Marilyn K. Berkely and Barbara Razzano were against the move.
In Monday’s work session, Kirkwood and Berkely said they were opposed to Eckles Construction looking for a construction manager who would work with Eckles Architecture & Engineering. The district had hired Eckles Architecture to design the project.
Eckles Architecture and Eckles Construction are separate businesses, but there are overlapping ownership interests.
Razzano said previously she would not back motions involving the project, which she had voted against.
The companies that will be reviewed are Pathline Inc., Altoona; Chronicle Consulting LLC, Pittsburgh; GP Construction Inc., Edinburg; Massaro Construction Management Services, Pittsburgh; Scaparotti Construction Group, Cleveland; P.J. Dick Inc., Pittsburgh; and Thomas & Williamson, Pittsburgh.
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A revised proposal will trim $2,000 in consultant fees that the New Castle Area School District has to pay.
During its regular session last night, the school board voted 6-3 to hire John M. Pappas of Eckles Construction Services. Pappas will advise the district in the selection of a construction manager to oversee a $19 million renovation and creation of an early learning center at the site of the Harry W. Lockley Kindergarten Center.
The district originally negotiated a $6,500 contract. Pappas would have reviewed 16 of the 18 proposals submitted.
When the board agreed to reject bids exceeding $500,000, that left seven companies to consider. Board member Brad Olson proposed that Pappas lower his fee.
“I just renegotiated with a smaller scope of work,” business manager Joseph Ambrosini said. “He didn’t need to put in the time for those over $500,000.”
Pappas reduced his the cost of his services to $4,500.
Board members J. Allan Joseph, Karen Humphrey, Fred Mozzocio, Mary Ann Tofel, Anna Pascarella and Olson voted for the contract. Mark Kirkwood, Dr. Marilyn K. Berkely and Barbara Razzano were against the move.
In Monday’s work session, Kirkwood and Berkely said they were opposed to Eckles Construction looking for a construction manager who would work with Eckles Architecture & Engineering. The district had hired Eckles Architecture to design the project.
Eckles Architecture and Eckles Construction are separate businesses, but there are overlapping ownership interests.
Razzano said previously she would not back motions involving the project, which she had voted against.
The companies that will be reviewed are Pathline Inc., Altoona; Chronicle Consulting LLC, Pittsburgh; GP Construction Inc., Edinburg; Massaro Construction Management Services, Pittsburgh; Scaparotti Construction Group, Cleveland; P.J. Dick Inc., Pittsburgh; and Thomas & Williamson, Pittsburgh.
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