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.”