Wednesday, August 22, 2007

Former board member's past comes to light

December 30, 2005


PAT LITOWITZ
plitowitz@ncnewsonline.com

Affordable Housing of Lawrence County wanted board members who represented the community's diversity.

To that end, Donald "Ducky" Conti tapped his next-door neighbor, the Rev. James O. Blackwell. Conti, the nonprofit housing agency's treasurer, touted Blackwell's standing in the African-American community in securing a seat for the East Home Street resident.

However, Blackwell is part of another community. One that would have raised questions with the board's former president. Blackwell is an ex-convict.

On Aug. 25, 1992, Blackwell pleaded guilty to two counts of aggravated burglary and one count of breaking and entering, according to Stark County, Ohio, court records. He and two Youngstown residents - David E. Smith and Lisa D. Dunn - were accused of burglarizing three Alliance, Ohio, nursing homes. Smith and Dunn also pleaded guilty.

Facing a sentence of five to 25 years, Blackwell spent seven months in the Lorain (Ohio) Correctional Institution. Afterward, he was placed on probation.

Blackwell and Conti could not be reached for comment.

"We asked each member to see if they could bring some new members in because we wanted to have diversity," recalled Robert Evanick, Affordable Housing's former president.

When asked if he was aware of Blackwell's past, he said, "No, absolutely not."

Blackwell resigned early this week, becoming the fourth person to leave the agency's board. He joins Evanick, attorney Frank Natale II and New Castle City Councilwoman Karen DeCarlo. Those resignations also came this month.

Conti and First Commonwealth Bank official Bill Bonner remain on the board.

Evanick is executive director of the Lawrence County Housing Authority. Conti serves on the board of the authority, which created the new agency in 2003.

A criminal past does not prohibit a person from serving on a nonprofit's board.

"It's one of those where you want to be aware of it and careful about it," said Joe Geiger, executive director of the Pennsylvania Association of Nonprofit Organizations.

"Frankly, a lot of organizations would make a judgment: Does this person bring more benefit to the board than exposure?

"There's no law that precludes a nonprofit to recruit someone who had a criminal record but it certainly ought to raise lots of flags on what that person's responsibilities and access to information would be."

Geiger said people are not required to divulge their past when asked to serve on a nonprofit board. However, an organization should practice due diligence in recruiting.

"If you had somebody who was convicted of bad behavior in accounting, you certainly wouldn't want that person to be a treasurer for you."

Revelation of Blackwell's conviction is one more piece of bad news for Affordable Housing.

The purchase of seven houses this month, four above assessed value, prompted the county commissioners to say they want more information about the agency's operations. And the board's ability to function with only two members is being examined.

"The IRS does not like boards of less than three," said Pittsburgh attorney Jack Owen, who specializes in tax-exempt organizations for his law firm, Polito and Smock. "They want to see a board of directors representative of the community."

The Internal Revenue Service is responsible for granting Affordable Housing tax-exempt status.

"The question ... is, would the IRS revoke it because they only have two on the board? The IRS would probably say, 'You have to recruit (more board members).'"


Copyright (c) 2005, New Castle News

Tuesday, August 21, 2007

'Everything still fine' with Affordable Housing

December 23, 2005

PAT LITOWITZ
plitowitz@ncnewsonline.com

With its board in apparent disarray, Affordable Housing of Lawrence County should cease operations, Robert Heath said.

"I voted for it because I thought it was good when it was proposed," the Lawrence County Housing Authority board chairman said Dec. 22. "But a year ago, I lost faith in it.

"If they're not going to build the handicapped housing, it should be disbanded."

Heath was referring to Dale Country Estates. Unveiled in August 2004, the proposed $2.5 million project featured 30 housing units for low-income senior citizens.

The development was to be located on Dale Road in Union Township. The project has not moved forward.

Donald "Ducky" Conti, secretary of Affordable Housing's board, rejected Heath's suggestion.

"Everything is still fine," said Conti, who also serves on the housing authority board. "We're still going forward."

As for Heath and other detractors, Conti said, "All of the sudden everybody wants to becomes Mr. Clean, a guy wearing a white hat," adding it is making him angry.

Conti said he and Affordable Housing's construction consultant, Robert Ratkovich, are running the group's day-to-day operations.

Ratkovich, a New Castle city councilman, is the housing authority's maintenance supervisor and deputy director.

Conti said the recent loss of board member Karen DeCarlo, a city council member, will not prevent Affordable Housing from performing its mission.

"She is going through a bunch of (expletive) now with city council and the budget. She doesn't need another headache on top of what she has now.

"We'll be looking for other board members."

A potential replacement, Shenango Township resident Brian Tanner, said Dec. 22 he would not accept an invitation to join the board.

"I informed them Tuesday or Wednesday that I'd like to do it, but there's no way I can," he said. "At this time I can't, I have way too much on my plate."

Conti said the board will meet next week but the session will not be open to the public.


Copyright (c) 2005, New Castle News

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.”

Copyright © 1999-2006 cnhi, inc.

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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