Tuesday, August 21, 2007

DeCarlo quits Affordable Housing board

December 23, 2005


PAT LITOWITZ
plitowitz@ncnewsonline.com

The board of Affordable Housing of Lawrence County has shrunk again with the resignation of Karen DeCarlo. DeCarlo, a New Castle city councilwoman, said Dec. 22 she had mailed her resignation to the nonprofit group on Dec. 19.

She follows Lawrence County Housing Authority executive director Robert Evanick and attorney Frank Natale in leaving the board. Both stepped down earlier this month.

"With my job and with council, I don't have any more time to spare," she said Dec. 22. "The meetings were always during the day, and I can't miss work during the day."

The organization was formed by the housing authority in 2003, with the objective to construct housing for low-income families and the handicapped. Instead, the group has purchased eight properties in New Castle with the intent to rehabilitate them.

Board member Bill Bonner, a First Commonwealth Bank official, wonders what will happen next.

"It sounds like it's collapsing," Bonner said Dec. 22. "There's not too many people left. I have not talked to Rev. (James) Blackwell," one of the three remaining board members. "I trust he is still there.

"I don't know who's still on the board at this point in time."

Bonner, Blackwell and Donald "Ducky" Conti, also a member of the board of the Lawrence County Housing Authority, are the remaining members of Affordable Housing's board.

Asked if he is going to resign too, Bonner said, "I'm not even going to address that at this point."

Blackwell could not be reached for comment.

The board approved the purchase of seven city properties. The mortgage agreement with First Commonwealth Bank for $250,000 was finalized Dec. 7.

Three of the purchases were near or below county and state market values.

The four others were either owned or co-owned by Nick DeRosa and John A. Orlando. Valued by the county at a total of $135,100, houses on Frank, East Wallace, Highland and Florence avenues sold for $214,500.

Overall, the seven structures were purchased for $327,500.

Orlando is retired from the Pennsylvania-American Water Co. DeRosa is the assistant superintendent of the New Castle Area School District.

One of DeRosa's roles is transportation supervisor for the school district, which has a busing contract with Laidlaw Transit. DeCarlo is Laidlaw's manager.

DeCarlo said she did not know of DeRosa's association when she agreed to the purchase.

"When we made the decision on that, we were not given the owners of the houses," she said. "We were just given the information that there were these houses available. These were the prices that were given.

"I didn't know until I read in the newspaper who the owners were."

Asked what she would have done had she known, DeCarlo answered, "Probably ask a lot more questions."

As a city council member, DeCarlo voted for a $45,000 lawsuit settlement involving DeRosa and Patricia G. Moosally. The issue, which council approved unanimously Dec. 22, involved an East Washington Street property DeRosa and Moosally once owned.

DeCarlo said she did not see a conflict in her vote.

"I am not in the decision-making process with the (busing) contract," she said. "That is all done with higher-ups from me."

DeRosa could not be reached for comment. School officials said he is expected to return Dec. 23 from a scheduled vacation in Florida.


Copyright (c) 2005, New Castle News

Wednesday, August 8, 2007

Police help get refunds in gold sales

By Pat Litowitz
New Castle News

The Neshannock Township Police Department is playing a pivotal role in preventing certain Internet sales from becoming losing propositions.

A Wilmington Road business, operating as Internet Sellers Inc., sold scrap gold jewelry through eBay, an international auction site. The business is registered as a state corporation.

The identity of the owner or owners has not been verified. The business no longer operates at its Wilmington Road site.

Accessing limited eBay records, the New Castle News learned that Internet Sellers Inc. sold 2.3 kilograms (approximately 5 pounds) of 14-karat scrap gold jewelry. The nine sales, which took place between June 18 and June 21, involved five buyers and totaled $21,425.

Erie resident Patricia Trujillo drove to Neshannock Township on June 15 to purchase scrap gold from the business.

“He wanted me to send money,” she said. “I wanted to verify the quality of the gold.

“Half of the stuff he was trying to sell me was junk. I ended up giving him $2,800, and then he gave me, what’s known in the industry, as dental gold. He called it platinum.”

Trujillo forwarded the metal to her refiner, who determined the value to be $2,100.

“He said if it wasn’t good he’d refund my money.”

Purchases involving Internet Sellers Inc. took place nationwide.

“People buy gold all over the world,” Tennessee resident Robert Taylor said. “I order from all the states.”

In Taylor’s instance, he paid for scrap gold that never arrived.

“You need to protect yourself,” he said. “I just want my money back.”

Ed Tatom of Redding, Calif., took a proactive approach by contacting buyers who had transactions with the Neshannock company.

“I basically helped out six or seven people,” he said.

However, the work of the Neshannock Township police allowed the affected consumers to get their money back.

“Believe it or not, I got my ($3,650),” Tatom said.

Taylor and Trujillo also were told that refunds were coming.

“(The Neshannock Township police) were very, very helpful,” Trujillo said. “(They) filled me in on everything that was taking place.

“EBay and the FBI take this serious. I think that’s a phenomenal thing. I am just overwhelmed about how serious they treated (the complaint).”

Attempts to contact Neshannock police Superintendent Phil Carlo for comment were unsuccessful. He had noted previously that this was an ongoing investigation.

Trujillo said that the Neshannock police informed her that eBay and the FBI’s fraud unit initiated the investigation. An eBay spokeswoman would not confirm that. Calls to the FBI seeking comment were not returned.

“We have a global fraud investigation team,” eBay’s Nichola Sharpe said. “We do get in touch with authorities. We have a good reputation with the FBI.

“We do everything to assist law enforcement.”

The state’s attorney general’s office offers a Bureau of Consumer Protection service to aid consumers with product or service complaints.

“Out-of-state buyers buying from a Pennsylvania seller or business can still file (a complaint) with the state or file with their own (state’s) attorney general,” said Lauren C. Bozart, assistant press secretary for the attorney general’s office.

For more information, call (800) 441-2555 or visit www.attorneygeneral.gov.

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Friday, July 27, 2007

HUD audits will go ahead

By Pat Litowitz
New Castle News

HUD may not like it, but the Lawrence County Housing Authority board will have an extensive review of its operations.

The authority’s comptroller, Holly Girdwood, raised concerns about the expenses involved with three board-sanctioned audits: forensic financial, inventory and building units. As of July, the authority showed a surplus of approximately $80,000.

“The inclusion of this cost may result in a deficit budget,” Girdwood told the board earlier this month.

The U.S. Department of Housing and Urban Development rated the nonprofit agency a troubled performer based on its 2005 fiscal performance. Former executive director Robert Evanick learned of the designation on Nov, 18, 2006. The board was not told of the authority’s status until January 2007.

Evanick’s inaction and the board’s resulting lack of confidence in him led the longtime administrator to retire.

Later, board members called for the audits in order to provide the incoming executive director with a thorough review of operations.

Girdwood said she contacted HUD officials in Pittsburgh to discuss the financial effects of the audits on the authority’s budget.

“They have informed me that a deficit budget will not be approved,” she said. “They are not comfortable with approving the cost of a forensic audit for the reason that was specified, and (they stated) that if you feel that there has been any wrongdoing, the HUD Inspector General’s office … is available at no cost for a review.”

Board member Michael Mancuso said Girdwood is premature in her predictions of a deficit.

“That’s putting the cart before the horse,” he said. “We don’t know how much the audit is going to cost us. Until we have all the figures, it would be difficult (to believe) that this would put us in a deficit situation.”

Girdwood said that from 2002 through 2007, approximately 30 audits have been performed. An independent audit of 2006 operations is under way. From Aug. 6 to Aug. 10, a HUD contractor will review the authority’s financial structure and the troubled status.

Mancuso said prior efforts do not go far enough.

“A forensic audit is extremely specialized,” he said. “We want everything. We want the whole ball of wax.”

HUD spokeswoman Maria Bynum said it is the board’s responsibility to maintain a balanced budget.

“HUD is working with the Lawrence County Housing Authority to assess the authority’s operations and to identify the actions needed to improve its performance,” she said.

“The authority is aware that HUD cannot approve a deficit budget. It’s up to the authority to decide how to budget its resources.

“It’s a management decision, and we’re confident that the authority will work it out and provide Lawrence County residents with quality housing services.”

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Wednesday, July 25, 2007

Board member begins payback

By Pat Litowitz
New Castle News

The threat of civil litigation prompted a New Castle Area School Board member to return approximately $1,700 to the district.

Peter J. Yerage, 63, of 929 Warren Ave. reimbursed the school system $150 last week, according to business manager Joseph Ambrosini. The retired Lawrence County educator also agreed to make monthly $50 payments. At that rate, full restitution would take place in February 2010.

Attempts to contact Yerage for comment were unsuccessful.

Yerage received $1,377.06 in cash advances to attend conferences in 2005 and 2006. He did not provide the district receipts showing how those funds were used. The district also claims Yerage had $307.05 in unallowable purchases during seminars in 2002, 2004 and 2005.

“It’s disturbing to me to say the least,” board President Fred Mozzocio said. “I don’t think you should go on a conference if you don’t have the financial (means) to support everything that goes along with that trip.

“I don’t believe any board member should rely on the district to front them the money to make these types of trips.”

The state Auditor General’s office has regularly criticized the district over travel expenses involving board members.

New Castle received its greatest criticism over a 2002 conference trip to New Orleans involving retired assistant superintendent Nick DeRosa and three school board members. The state noted that the board members and DeRosa failed to register or pay registration fees. Their attendance at conference programs and events could not be verified.

In its December 2006 audit covering the 2003-04 school years, the state found 10 violations among the 19 travel expenses reviewed.

Calling the recurring findings an embarrassment, Superintendent George Gabriel on Dec. 16, 2006, banned conference and seminar travel for administrators. The board followed Gabriel’s example and prohibited its members from district-reimbursed travel.

“Our goal is to be ‘finding free’ in our next audit,” Gabriel said. “(Yerage) is supposed to be held to a higher standard.”

After attending two sessions addressing the district’s and state’s travel policies, administrators regained travel privileges on Feb. 20, 2007. The board has maintained its moratorium.

“I didn’t know about the report’s findings,” Yerage said in December 2006. “That was an oversight. I will pay the district back.”

Until last week, he hadn’t.Ambrosini said the district made several efforts to recoup the funds. When Yerage repeatedly failed to respond, Ambrosini and Gabriel sent a certified letter to him stating he had 20 days to make restitution or face collection efforts through the district judge’s office.

“You have failed and refused to provide receipts evidencing use of these funds for travel and conference attendance on behalf of the district,” the letter said. “Please be advised the State Auditors are aware of the circumstances and are requesting this matter be addressed without delay.”

Board member Philip Conti said Yerage’s travel troubles are somewhat of a surprise. Conti served as business manager at the Lawrence County Career and Technical Center during Yerage’s tenure there.

“When he was at the vo-tech, he did a lot of traveling,” Conti said. “As far as my memory serves me, there was never a problem.

“Obviously, he’s taken a different position since he became a board member.”

Mozzocio said Yerage’s actions tarnish the school system.

“Myself and many other of the board members have done our very best to restore the reputation of the New Castle Area School Board and the district. When things like this come out, it puts a shadow on us.

“It makes that black cloud linger, which we have fought very hard to get rid of.”

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Friday, May 25, 2007

City school board will lack black presence

By Pat Litowitz
New Castle News

This month’s election highlighted the ineffectiveness of New Castle’s black vote and the frustration felt within the city’s black community.

“The blacks can’t really put a candidate in,” said Evelyn Ward, a member of the city’s NAACP chapter. “They can help sway a vote.

“The blacks feel they just don’t have a chance.”

This month’s primary election featured two blacks — Charlotte Sheffield and the Rev. Samuel G. Holmes Jr. — on the Democratic ticket for a city school board seat. Holmes captured sixth place with 1,159 votes. Sheffield finished two votes behind Holmes.

“African-Americans have historically struggled to gain and maintain the right to vote,” said Dr. Jacqueline M. Respress, a district administrator. “This right is not taken lightly in the African-American community, nor should it be in any community.”

The top five candidates on the Democratic and Republican slates advance to the November general election. Sheffield placed sixth on the GOP side. Holmes declined to cross-file as a Republican.

“For whatever reason I didn’t get the necessary votes,” Sheffield said. “To me, the candidates that were running, they campaigned strongly.

“I’m not looking to put the blame on anybody.”

NO BLACKS

When the new school board is sworn in, it will lack black representation. Sheffield’s term started in 2003. Prior to Sheffield, the board’s previous black representative was Ramona Jordan, who served from 1991 to 1995.

“A school board is bound to ensure that all students have equal opportunity to education and equal opportunity to success,” Respress said. “Issues of color should not enter into the decision-making process when it concerns the education of our children.”

If the board reflected its student population, then two to three blacks would be among its nine members. For the 2006-07 school year, the district reported an enrollment of 3,642 students including 990 (27 percent) blacks.

“I hated to see her lose because at least we had someone in there,” Ward said. “But now we have no one.”

In reviewing the city’s voting patterns, Holmes beat Sheffield in 19 of 41 districts. Sheffield topped Holmes in 18. They tied in four districts.

A number of explanations have been offered for Sheffield’s ouster. Her vote on the hiring of Terence P. Meehan as assistant to the superintendent leads the list. Respress was one of four finalists for the post, which was created after the retirement of former Assistant Superintendent Nicholas DeRosa.

In a 9-0 vote on May, 30, 2006, the board chose Meehan.

OUTRAGE

The “Charlotte vote” stirred outrage in the black community. During the board’s June 2006 regular session, a standing-room-only audience voiced its displeasure with Meehan’s hiring and Sheffield’s decision to support it.

“I believe that individuals vote their conscience,” Respress said. “It would be inappropriate for me to second guess that vote."

Respress, who was New Castle’s junior high principal at the time, received a promotion this month as principal of the junior-senior high school. She is the district’s highest-ranking black official. Respress is also the lone black among the district’s 12 administrators and principals.

“I think that had a lot to do with it,” Ward said of the “Charlotte vote.”

Sheffield’s opponent agreed.

“I’ve tried not to harp too much on what’s happened prior,” Holmes said. “I think the people can draw their own opinions.

“If I would have been involved, my main objective would have been to place the most qualified person in that position.”

AN ISSUE?

Sheffield questioned if her vote was truly an issue.

“I would give New Castle residents more credit than that,” she said. “There’s a lot of feelings that happen out in the community that everybody else hears.

“So I’m not aware of what everyone else is thinking.”

Aggressive campaigning against Sheffield may have played a role in the election outcome.

“My brother was No. 1 — the biggest campaigner against her,” Ward said. “I told him he was bitter because he went with her for 12 years. I think it was unfair the way he talked about her.”

Donald “Bubba” Taylor, a Beech Street resident, acknowledged that he worked hard to oust Sheffield.

“Most of the people I talked to, they were very upset at Charlotte and what she did ... to Jackie Respress,” he said.

Taylor then cited Sheffield’s vote that prevented the New Castle Thunder, a semi-pro football team, from playing its home games at Taggart Stadium. He was also critical of her performance as a member of the district’s athletic committee.

Taylor challenged the assertion that Sheffield represented the black community’s best interests.

“We had (no black representation) before when we had Sheffield. She puts on a good front.”

Personal issues also appeared to have spurred Taylor. He said that he and Sheffield had been previously engaged.

Sheffield would not comment on their relationship, except to say, “It is a fact we were engaged at one time.”

Ultimately, the black vote had little impact on the race. In the city’s 6th Ward, where a majority of the black population lives, Holmes outpolled Sheffield, 146-108.

TURNOUT

The ward’s three districts experienced a poor voter turnout, with 254 out of 639 registered Democrats voting.

In the May 2003 primary, Sheffield collected 1,511 votes running as a Democrat. Had she retained that number in this month’s election, she would have been the third highest vote-getter. That would have allowed her to advance to the general election and knock current board President Fred Mozzocio to sixth.

“I was the one who talked Charlotte into running the first time,” Ward said. “I was disappointed that she lost. “When she came in the first time, the blacks didn’t put her in.”

Ward said Sheffield’s loss didn’t come as a surprise.

“It’s really not a shock to me. I’ve been in elections since back to the ’50s, and New Castle is one of the most prejudiced places in Pennsylvania.

“I see it getting worse. To me this is the worst right now.”

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Tuesday, April 10, 2007

Questions surround group hired by Nick DeRosa

By Pat Litowitz
New Castle News

A community group that once promoted drug and alcohol prevention resurfaced last year with a new task: educating inmates.

Today, doubts regarding the New Castle Area School District Community Drug and Alcohol Task Force’s legitimacy have surfaced. The release of a school district correspondence to the nonprofit entity has sparked questions about the group’s leadership structure and who controls its finances.

While each organization shares the name “New Castle Area School District,” the group is not a creation of — or controlled by — the school system. During the 2005-2006 school year, the district selected the organization to administer its prison education program.

DEROSA DECISION

The decision to hire the nonprofit came at the recommendation of Assistant Superintendent Nicholas DeRosa, who has since retired. For years, DeRosa served as liaison between the school and the Lawrence County jail.

Attempts to contact DeRosa were unsuccessful.In a document obtained by the New Castle News, a National City Bank statement shows the group with a balance of $28,230.59 as of Aug. 21, 2006.

District business manager Joseph Ambrosini, in a March 27 letter, suggested that the district overpaid the agency for its services.

“Since your organization was hired by the school district as an independent contractor ... any and all monies paid by the school district not utilized for the prison program must be returned to the school district,” he wrote.

The group received $86,100 for the school year. Ambrosini said yesterday the program cost should have totaled approximately $60,000.

“They did a budget to say they needed X amount of dollars to take care of salaries, supplies, secretary,” Ambrosini said. “When we did the math, I’m showing that I gave them too much money.”

THE MYSTERY

The makeup of the board of directors is somewhat of a mystery.

The group filed articles of incorporation with the state in March 1988. At the time, Robert Heath was listed as president; Chuck Cuba, vice president; Dennis Vincent, treasurer; and Jewell Cuba, secretary. Of the four, Heath, Vincent and Chuck Cuba said they ended their association with the nonprofit group years ago.

The state’s Department of State Web site continues to list the organization as active with Heath, Vincent and Jewell Cuba listed in their above roles.

Heath said he resigned his post 10 to 12 years ago.

“Once you leave, you’re not there,” he said. “You’re not president.

“When I was in it, it was an active group. Everything we did was school related, and we did everything for the kids.”

The group also lists Gary Bucci, Don Melonio, Ron Esposito, Dr. Mabel Paige. Ray Doneluck, John Orlando and Steve Catale as board members.

APPROACHED

Paige, a retired district administrator, said DeRosa approached her months ago about being a board member.

“He asked, ‘Would I like to be part of that,’ ” said Paige, who was active with the task force through 1999. “He said he’d be in touch but wasn’t.

“(DeRosa) said he’d like to get it started (again) because of the (drug) situation in town.”

Paige added that she wasn’t aware that the group was involved in the prison education program.

DeRosa also approached Bucci.

“It was mentioned to me sometime back,” Bucci said. “If it is (in existence), I was unaware of it. If I was asked to be a member, I would have volunteered.”

Attempts to reach Melonio, Esposito, Doneluck, Orlando and Catale were unsuccessful.

The Cubas, who are married, remain associated with the prison education program. Chuck Cuba serves as a teacher, while his wife performs secretarial duties.

“I haven’t been on that (drug and alcohol) board for eight years,” Chuck Cuba said. “I don’t want to talk about it.

“I don’t trust you people. Good night.”

Attorney Louis Perrotta said he was asked to prepare several documents for the task force. He declined to name the person making the request. Perrotta said yesterday that he has had no additional dealings with the nonprofit group.

STATUS

While the New Castle Area School District Community Drug and Alcohol Task Force received nonprofit status from the state, it lacks federal tax-exempt status. An IRS representative said that could be for one of two reasons: the group did not apply, or its application was not accepted. The agent would not disclose what took place in regards to the task force.

Superintendent George Gabriel said it was the district’s standard practice to subcontract for services in regards to the jail. In the 2004-2005 school year, the Family Center held the prison program contract. Gabriel said he consulted with DeRosa about changing providers.

The task force, known in the 1990s as the Fighting Against Drugs and Alcohol Committee, had a solid reputation, Gabriel said.

ANOTHER WAY

“I told Nick I would like to go with another organization,” he said. “And FADAC name came up in the conversation. “You had some good, honest, reputable people on that board. I figured this would be a good organization to operate our prison program.

“Nick was handling it, and I was trusting his judgment at that time.”

The task force’s operation of the prison program lasted one year. The school district oversees the program now. Stan Magusiak, assistant to the superintendent, is program liaison.

“Our feeling was we could maintain better internal control of the program if we handled it,” Gabriel said. “We took the bull by the horns and made major changes for the good.”

The school board ended its association with the New Castle Area School District Community Drug and Alcohol Task Force on Aug. 16.

The task force also had proposed operating a pre- and after-school program for the district.

Gabriel rejected that offer.

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Friday, December 15, 2006

Audit reveals chaos in school business office

BY PAT LITOWITZ
PLITOWITZ@NCNEWSONLINE.COM

Missed deadlines, withheld subsidy payments and improper fund transfers.

In its audit released Monday, the state Auditor General's office disclosed the shortcomings of the New Castle Area School District for the 2002-03 and 2003-04 school years. It also provided a glimpse into a district business office that was overworked and in disarray.

"When (the audit findings) took place, we were going through some very turbulent times," Superintendent George Gabriel said. "We had a superintendent who was ill. He was contemplating retirement. We had a business manager who was essentially dying."

The district witnessed a change in its top management during late 2002. Battling cancer, Joseph A. Martin Jr. announced his retirement in mid-October. Gabriel was promoted a month later. Business manager Marie Pisano left nine days after Gabriel was named to oversee the district. Pisano could no longer work.

"She was so weak," Gabriel said. "She could hardly walk, and she was trying to maintain the business office."

Assistant business manager Abbie D. Baxter agreed with Gabriel's assessment.

"She was not well. She had cancer. She was not herself." The hiring of Roger Havey (as business manager) was expected to create stability in the business office. It didn't. "He just didn't do a whole lot," Baxter said. "He kept me doing stupid things.

"The first thing he did was get every board member a credit card. I had to do all that paperwork. Only three of them ever used them."

Five months after his arrival, Havey was suspended. The reason? The district learned he had pleaded guilty to two counts of theft by failure to make required disposition of funds. A short time later he was to be fired.

As the district waited for a replacement, Baxter took over the finances. "(Havey) didn't do one thing on the budget," she said. "So I had two weeks to get a $30 million-plus budget done.

"I pretty much lived here to get my work done." Baxter and the business office found themselves battling to pay bills and focusing on priority projects. "We were going on a whole-new computer system," she said. "So that took my time.

"There were constant interruptions with this new high school. I just took care of what I could take care of and what I had to do."

That meant state reports were set aside. "You had a rookie superintendent," Gabriel said. "I depended on Abbie to run the district.

"We had to keep our head above water, essentially. We had to make sure the bills were getting paid for the high school project."

Nine months passed after Havey's suspension before the school board selected his replacement, Joseph Ambrosini.

"When Joe walked into the office on the very first day, I felt the weight of the world off my shoulders," Baxter said. "He just started dealing with the constant interruptions, and I could actually sit down and get something done."

Ambrosini said what he saw was disturbing.

"I was stepping into a financial picture that was very disorganized," he said. "There was a lot of disarray.

"There was a lot of paperwork daily that flows through that office. I don't know how Abbie stayed with it, to be honest with you."

Almost a year into Ambrosini's term, the district's business office returned to normalcy.

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