By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Two defendants in a mortgage fraud scandal are seeking dismissal of charges in their federal court case.
Attorneys for Anthony J. Staph Jr. and Nicholas DeRosa filed motions Monday with U.S. District Judge Gustave Diamond in Pittsburgh.
To date, federal prosecutors have charged five Lawrence County residents in the government’s investigation of a defunct nonprofit housing agency. The alleged conspiracy involved Affordable Housing of Lawrence County, which was formed in 2003 as a spin-off agency of the Lawrence County Housing Authority.
The U.S. Attorney’s Office accused DeRosa, of 221 N. Cascade St., and Robert Ratkovich, of 512 Norwood Ave., with defrauding First Commonwealth Bank of $250,000. The alleged plot involved the purchase of seven properties at inflated prices on behalf of Affordable Housing.
DeRosa faces one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy. He is a retired New Castle Area School District administrator and former city councilman.
Ratkovich pleaded guilty in July to one count of bank and mail fraud conspiracy and one count of money laundering conspiracy. The former housing authority supervisor and city councilman is scheduled to be sentenced April 28.
Staph, a real estate appraiser, was indicted on one count of bank fraud.
Thomas J. Farrell, who represents the Neshannock Township resident, asked the court to dismiss the charge involving his client.
“(First Commonwealth Bank) selected and paid Mr. Staph to do the appraisals, after the sales agreements were signed and after the sales prices set,” Farrell stated in court documents. “There will be no evidence that Mr. Staph received any benefit from Mr. DeRosa or Mr. Ratkovich for appraising the properties at any particular value.”
He added the government never indicated Staph played a role in selecting the properties Affordable Housing bought.
“There is no suggestion that either DeRosa or Ratkovich had any communications whatsoever with Mr. Staph about their scheme or the appraisals.”
Farrell said Staph’s work was limited to evaluating the properties during a two-week period in November 2005.
The government alleged Staph overvalued the appraisals.
If Staph’s dismissal is denied, Farrell wants the court to separate his client’s case from that of DeRosa’s. The government is trying the pair as part of one case.
Efrem M. Grail, DeRosa’s legal counsel, is requesting the dismissal of the money laundering conspiracy charge.
In his motion, Grail said the conspiracy allegation has no bearing on the bank and mail fraud charges. The latter counts involve Affordable Housing and funds from First Commonwealth, while the money laundering charge involves an alleged kickback scheme with money obtained from another source.
The counts, Grail says, were improperly joined — known as duplicity — and could damage DeRosa’s defense.
“Such a duplicitous count in an indictment charging multiple crimes must be dismissed,” Grail wrote.
If his argument is rejected, he asked that the bank and mail fraud charges be tried separately from the money laundering count.
Diamond told the government to respond to the defendants’ motions by April 9.
The mortgage fraud investigation has produced charges separate but related to the Affordable Housing case.
Former county treasurer, Gary F. Felasco, pleaded guilty in September to one count of failure to file a 2005 federal tax return.
According to government documents, Felasco underreported his income by $10,000. He earned $44,568 as county treasurer in 2005 and also collected $35,000 as the result of illegal activity related to Affordable Housing.
Felasco was sentenced to three years probation and ordered to pay back taxes, penalties and interest to the Internal Revenue Service.
Michael Trover, of 609 E. Long Ave., was indicted in November on one count of lying to a federal grand jury. Pretrial motions in his case are due by April 20.
Thursday, March 25, 2010
Friday, March 5, 2010
Agency liquidates city-based credit union
March 6, 2010
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Federal regulators closed a local credit union and cited its deteriorating financial condition as the reason.
The Lawrence County School Employees Federal Credit Union ceased operations at 1 p.m. yesterday.
The National Credit Union Administration reached an agreement with First Choice Federal Credit Union to purchase the credit union and assume a small percentage of its loans. Members of the defunct credit union can access their accounts beginning Monday at one of two First Choice locations: 2209 W. State St., Union Township, and 1400 Wilmington Road, Neshannock Township.
The NCUA’s action marks the fourth federally insured credit union to be liquidated this year. The National Credit Union Share Insurance Fund insures accounts to $250,000.
“The most important thing is that no member lost any money,” said Marilyn Wehr, First Choice’s chief executive officer. “We want everyone to feel safe and secure.
“It is important for the public to understand that this was an isolated incident limited to the Lawrence County School Employees Federal Credit Union and should not reflect on any other bank or credit union.”
First Choice employees have provided operational assistance to the former credit union since October.
The school employees credit union, chartered in 1937, reported a net loss of $3.4 million in the fourth quarter of 2009. Its cash assets dropped from $2.6 million to $151,000 from September to December. Total assets during the same period fell from $6.4 million to $2.6 million.
The credit union reported approximately 1,900 clients last year. Its membership was made up of the employees and families of the county school districts, the Midwestern Intermediate Unit IV and Westminster College. At closing, the customer base dropped to approximately 1,100.
The NCUA has contacted the U.S. Department of Treasury’s financial crimes unit to review the financial losses.
Wehr said First Choice opted not to hire the former credit union’s lone employee nor keep the North Mill Street site open. The liquidation also dissolved the volunteer board of trustees: President Kenneth Cotton, Joseph Croach, Brian Glass and Donna Pezzuolo.
Cotton said First Choice offered the best option for its members.
“That was the best way we could have gone,” he said. “I am personally relieved that all funds were insured and nobody lost any money.”
First Choice has assets of $22.3 million and serves approximately 4,400 customers. Membership is open to anyone who lives, works, worships or attends a county school.
Wehr said she will meet with school district business managers to outline the services First Choice offers. She also wants to reach out to those who left the credit union prior to its closing.
“I gave my word I would treat everyone as family as I do at First Choice,” she said.
The NCUA will administer a majority of the loans made through the school employees credit union.
“Due to the limited time available for review, First Choice was only able to acquire a small percentage of LCSE member loans,” Wehr said, “but we are committed to reconsidering refinance of any loan we did not acquire.”
For questions regarding school employee accounts, call First Choice at (724) 652-8393.
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Federal regulators closed a local credit union and cited its deteriorating financial condition as the reason.
The Lawrence County School Employees Federal Credit Union ceased operations at 1 p.m. yesterday.
The National Credit Union Administration reached an agreement with First Choice Federal Credit Union to purchase the credit union and assume a small percentage of its loans. Members of the defunct credit union can access their accounts beginning Monday at one of two First Choice locations: 2209 W. State St., Union Township, and 1400 Wilmington Road, Neshannock Township.
The NCUA’s action marks the fourth federally insured credit union to be liquidated this year. The National Credit Union Share Insurance Fund insures accounts to $250,000.
“The most important thing is that no member lost any money,” said Marilyn Wehr, First Choice’s chief executive officer. “We want everyone to feel safe and secure.
“It is important for the public to understand that this was an isolated incident limited to the Lawrence County School Employees Federal Credit Union and should not reflect on any other bank or credit union.”
First Choice employees have provided operational assistance to the former credit union since October.
The school employees credit union, chartered in 1937, reported a net loss of $3.4 million in the fourth quarter of 2009. Its cash assets dropped from $2.6 million to $151,000 from September to December. Total assets during the same period fell from $6.4 million to $2.6 million.
The credit union reported approximately 1,900 clients last year. Its membership was made up of the employees and families of the county school districts, the Midwestern Intermediate Unit IV and Westminster College. At closing, the customer base dropped to approximately 1,100.
The NCUA has contacted the U.S. Department of Treasury’s financial crimes unit to review the financial losses.
Wehr said First Choice opted not to hire the former credit union’s lone employee nor keep the North Mill Street site open. The liquidation also dissolved the volunteer board of trustees: President Kenneth Cotton, Joseph Croach, Brian Glass and Donna Pezzuolo.
Cotton said First Choice offered the best option for its members.
“That was the best way we could have gone,” he said. “I am personally relieved that all funds were insured and nobody lost any money.”
First Choice has assets of $22.3 million and serves approximately 4,400 customers. Membership is open to anyone who lives, works, worships or attends a county school.
Wehr said she will meet with school district business managers to outline the services First Choice offers. She also wants to reach out to those who left the credit union prior to its closing.
“I gave my word I would treat everyone as family as I do at First Choice,” she said.
The NCUA will administer a majority of the loans made through the school employees credit union.
“Due to the limited time available for review, First Choice was only able to acquire a small percentage of LCSE member loans,” Wehr said, “but we are committed to reconsidering refinance of any loan we did not acquire.”
For questions regarding school employee accounts, call First Choice at (724) 652-8393.
Thursday, February 25, 2010
Struggling credit union now limiting withdrawals
Feb. 25, 2010
By PATRICK E. LITOWITZ
New Castle News
The board of directors overseeing a struggling credit union have voted to limit the amount of money members may withdraw.
The move is in response to public disclosure that the Lawrence County School Employees’ Credit Union reported a net loss of $3.4 million in the fourth quarter of 2009.
In another development, the U.S. Department of Treasury’s financial crimes unit has been alerted to the credit union’s troubles.
The board resolution allows members to remove up to $5,000 in a week. Withdrawals exceeding $5,000 require members to provide notice 10 business days in advance.
The National Credit Union Share Insurance Fund insures member accounts up to $250,000.
Board President Kenneth W. Cotton said Monday that federal auditors discovered irregularities with credit union accounting in late September.
Cotton said the board is waiting on a National Credit Union Administration report. The credit union’s future is tied to its recommendations. Options include selling off assets or merging with another credit union. The report will not be made public.
“We are sorry for any inconvenience this may cause you,” the board said in a statement.
“We hope you will continue to support the credit union as we work through this process without our manager.”
Holly Cowan, a Slippery Rock Township resident, served as chief executive officer and board member. She reportedly left her job five months ago. Cotton declined to discuss the reason for her departure.
In the interim, a national administration representative and First Choice Federal Credit Union staffers are working with the credit union’s only employee.
First Choice, located in Union Township, is providing management assistance.
The Financial Crimes Enforcement Network, a division of the U.S. Department of Treasury, and the credit union’s bonding company have been notified of developments.
The national representative, who asked not to be identified, said a “suspicious activities report” is forwarded to the financial crimes unit if losses exceed a certain amount.
The credit union, chartered in 1937, had approximately 1,900 clients last year. Its members consist of county school district employees and their relatives.
Serving on the volunteer board are Cotton, Joseph Croach, Brian Glass and Donna Pezzuolo.
By PATRICK E. LITOWITZ
New Castle News
The board of directors overseeing a struggling credit union have voted to limit the amount of money members may withdraw.
The move is in response to public disclosure that the Lawrence County School Employees’ Credit Union reported a net loss of $3.4 million in the fourth quarter of 2009.
In another development, the U.S. Department of Treasury’s financial crimes unit has been alerted to the credit union’s troubles.
The board resolution allows members to remove up to $5,000 in a week. Withdrawals exceeding $5,000 require members to provide notice 10 business days in advance.
The National Credit Union Share Insurance Fund insures member accounts up to $250,000.
Board President Kenneth W. Cotton said Monday that federal auditors discovered irregularities with credit union accounting in late September.
Cotton said the board is waiting on a National Credit Union Administration report. The credit union’s future is tied to its recommendations. Options include selling off assets or merging with another credit union. The report will not be made public.
“We are sorry for any inconvenience this may cause you,” the board said in a statement.
“We hope you will continue to support the credit union as we work through this process without our manager.”
Holly Cowan, a Slippery Rock Township resident, served as chief executive officer and board member. She reportedly left her job five months ago. Cotton declined to discuss the reason for her departure.
In the interim, a national administration representative and First Choice Federal Credit Union staffers are working with the credit union’s only employee.
First Choice, located in Union Township, is providing management assistance.
The Financial Crimes Enforcement Network, a division of the U.S. Department of Treasury, and the credit union’s bonding company have been notified of developments.
The national representative, who asked not to be identified, said a “suspicious activities report” is forwarded to the financial crimes unit if losses exceed a certain amount.
The credit union, chartered in 1937, had approximately 1,900 clients last year. Its members consist of county school district employees and their relatives.
Serving on the volunteer board are Cotton, Joseph Croach, Brian Glass and Donna Pezzuolo.
Wednesday, February 24, 2010
Credit union’s future uncertain
Feb. 23, 2010
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A New Castle-based credit union lost $3.4 million during the last three months of 2009.
“We have endured some losses. I can’t confirm the total amount,” said Kenneth W. Cotton, president of the credit union’s board of directors. “The entire situation is really a complete shock to the whole board.”
Federal auditors uncovered irregularities with Lawrence County School Employees’ Credit Union finances in late September.
The credit union, chartered in 1937, serves approximately 1,900 clients. Its members consist of county school district employees and their relatives.
“As of right now, we’re still in business,” Cotton said. “I want to reinforce that (members’) accounts are insured to $250,000. We’re trying to avoid panic at any cost.
“We currently have assets available to our members.”
Cotton said the credit union is working with the National Credit Union Administration and First Choice Federal Credit Union, located in Union Township, to assist with operations. The NCUA is a federal agency that regulates and charters credit unions.
“All we know is there are accounting irregularities,” Cotton said. “We had to write off some loans.”
Financial information obtained from the NCUA highlights problems in the fourth quarter of 2009.
Cash assets fell from $2.6 million in September to $152,000 at year’s end. During the same period, loan write-offs jumped from $6,600 to $770,000. Loss on investments reached $2.4 million in December. Conversely, no losses were reported between December 2008 through September 2009.
Cotton said the board is waiting for an auditor’s report, which will detail what took place and will recommend what actions the credit union should take.
Cherie Umbel, NCUA spokeswoman, said the report’s contents will not be made public.
A volunteer board oversees the credit union’s operations. Joining Cotton on the board are Joseph Croach, Brian Glass and Donna Pezzuolo.
“I’m just a figurehead,” Croach said. “We’re ignorant of what’s going on.”
Attempts to reach Glass and Pezzuolo for comments were unsuccessful.
Today the credit union’s staff consists of a teller, who declined to be identified. She said that the credit union’s chief executive officer, Holly Cowan, has not been in the office for the last five months. Cowan also served on the board.
“She no longer works for us,” Cotton said.
Stating that it was a personnel issue, he declined to discuss her departure.
Attempts to reach Cowan by phone and at her Slippery Rock Township home were unsuccessful.
There have been 185 bank failures since 2008, according to federal regulators. In comparison, credit unions have proved to be stable operations.
Just 15 were liquidated in 2009 in addition to one this year. Of those, 13 had their assets purchased by other credit unions.
The New Castle Area School District said the number of employees making deposits to the Lawrence County School Employees’ Credit Union dropped from 115 to 79.
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A New Castle-based credit union lost $3.4 million during the last three months of 2009.
“We have endured some losses. I can’t confirm the total amount,” said Kenneth W. Cotton, president of the credit union’s board of directors. “The entire situation is really a complete shock to the whole board.”
Federal auditors uncovered irregularities with Lawrence County School Employees’ Credit Union finances in late September.
The credit union, chartered in 1937, serves approximately 1,900 clients. Its members consist of county school district employees and their relatives.
“As of right now, we’re still in business,” Cotton said. “I want to reinforce that (members’) accounts are insured to $250,000. We’re trying to avoid panic at any cost.
“We currently have assets available to our members.”
Cotton said the credit union is working with the National Credit Union Administration and First Choice Federal Credit Union, located in Union Township, to assist with operations. The NCUA is a federal agency that regulates and charters credit unions.
“All we know is there are accounting irregularities,” Cotton said. “We had to write off some loans.”
Financial information obtained from the NCUA highlights problems in the fourth quarter of 2009.
Cash assets fell from $2.6 million in September to $152,000 at year’s end. During the same period, loan write-offs jumped from $6,600 to $770,000. Loss on investments reached $2.4 million in December. Conversely, no losses were reported between December 2008 through September 2009.
Cotton said the board is waiting for an auditor’s report, which will detail what took place and will recommend what actions the credit union should take.
Cherie Umbel, NCUA spokeswoman, said the report’s contents will not be made public.
A volunteer board oversees the credit union’s operations. Joining Cotton on the board are Joseph Croach, Brian Glass and Donna Pezzuolo.
“I’m just a figurehead,” Croach said. “We’re ignorant of what’s going on.”
Attempts to reach Glass and Pezzuolo for comments were unsuccessful.
Today the credit union’s staff consists of a teller, who declined to be identified. She said that the credit union’s chief executive officer, Holly Cowan, has not been in the office for the last five months. Cowan also served on the board.
“She no longer works for us,” Cotton said.
Stating that it was a personnel issue, he declined to discuss her departure.
Attempts to reach Cowan by phone and at her Slippery Rock Township home were unsuccessful.
There have been 185 bank failures since 2008, according to federal regulators. In comparison, credit unions have proved to be stable operations.
Just 15 were liquidated in 2009 in addition to one this year. Of those, 13 had their assets purchased by other credit unions.
The New Castle Area School District said the number of employees making deposits to the Lawrence County School Employees’ Credit Union dropped from 115 to 79.
Saturday, February 6, 2010
Audit’s clean slate pleases district
Feb. 6, 2010
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Nothing thrilled Karen Humphrey.
Superintendent George Gabriel and business manager Joseph Ambrosini agreed. Nothing was good.
The state Auditor General’s preliminary audit of the New Castle Area School District came up clean — no findings or observations. That’s a first in approximately 40 years.
“It was clear as a bell,” Humphrey said. “It was exciting news.”
She was one of five school board members who attended Monday’s conference with state auditors. The report covers the 2006-2007 and 2007-2008 school years.
The Auditor General’s office must finalize the report before forwarding it to the Pennsylvania Department of Education and releasing it to the public.
The Auditor General’s office consistently has issued findings and observations against the school system. Abbie Baxter-Betley, the district’s assistant business manager, examined audits dating back to 1973. Each noted some flaw in district operations.
“We had to sit through some pretty rough audits in the past,” said Humphrey, who has served on the board since December 1995.
Among the areas targeted were transportation, financial reporting and teacher certification. The topic causing the greatest uproar dealt with travel and conference expenses.
Nicholas DeRosa, a retired school district administrator, was singled out in the past for unverified and unnecessary costs involving conferences in New Orleans, San Francisco and San Diego. In an unrelated matter, DeRosa is facing federal charges of bank fraud, mail fraud and money laundering conspiracy as part of a mortgage fraud investigation.
Former board member Peter J. Yerage had found himself under scrutiny regarding travel expenses to a conference in Washington, D.C.
“Prior audits were embarrassing, to say the least,” Gabriel said. “We’re no longer going to accept findings or observations.”
Ambrosini said that $85 million passed through the district during the audit period.
“The auditors told the administration and board that to have no findings or observations is monumental for a district our size,” he said.
Auditors reviewed seven areas, ranging from compliance with past audit findings to the operations of the Information Technology Department.
“They even checked the lights around the buildings,” Ambrosini said.
Gabriel said the school system’s performance resulted from a collective effort.
“What this (comes) down to is effective management of school district funds and providing quality
programs for our kids.”
Humphrey said the audit shows that New Castle’s administrators are serious about their responsibilities.
“When George said he wanted a clean audit, they weren’t just words,” she said. “It is important for a community to have a school district (it) can be proud of.”
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Nothing thrilled Karen Humphrey.
Superintendent George Gabriel and business manager Joseph Ambrosini agreed. Nothing was good.
The state Auditor General’s preliminary audit of the New Castle Area School District came up clean — no findings or observations. That’s a first in approximately 40 years.
“It was clear as a bell,” Humphrey said. “It was exciting news.”
She was one of five school board members who attended Monday’s conference with state auditors. The report covers the 2006-2007 and 2007-2008 school years.
The Auditor General’s office must finalize the report before forwarding it to the Pennsylvania Department of Education and releasing it to the public.
The Auditor General’s office consistently has issued findings and observations against the school system. Abbie Baxter-Betley, the district’s assistant business manager, examined audits dating back to 1973. Each noted some flaw in district operations.
“We had to sit through some pretty rough audits in the past,” said Humphrey, who has served on the board since December 1995.
Among the areas targeted were transportation, financial reporting and teacher certification. The topic causing the greatest uproar dealt with travel and conference expenses.
Nicholas DeRosa, a retired school district administrator, was singled out in the past for unverified and unnecessary costs involving conferences in New Orleans, San Francisco and San Diego. In an unrelated matter, DeRosa is facing federal charges of bank fraud, mail fraud and money laundering conspiracy as part of a mortgage fraud investigation.
Former board member Peter J. Yerage had found himself under scrutiny regarding travel expenses to a conference in Washington, D.C.
“Prior audits were embarrassing, to say the least,” Gabriel said. “We’re no longer going to accept findings or observations.”
Ambrosini said that $85 million passed through the district during the audit period.
“The auditors told the administration and board that to have no findings or observations is monumental for a district our size,” he said.
Auditors reviewed seven areas, ranging from compliance with past audit findings to the operations of the Information Technology Department.
“They even checked the lights around the buildings,” Ambrosini said.
Gabriel said the school system’s performance resulted from a collective effort.
“What this (comes) down to is effective management of school district funds and providing quality
programs for our kids.”
Humphrey said the audit shows that New Castle’s administrators are serious about their responsibilities.
“When George said he wanted a clean audit, they weren’t just words,” she said. “It is important for a community to have a school district (it) can be proud of.”
Wednesday, January 27, 2010
Agency monitors pollution levels surrounding St. Vitus school
Jan. 27, 2010
By Patrick E. Litowitz
New Castle News
A state environmental agency will examine the air quality of a New Castle parochial school during the next six months
Early indications are the air is more than fair at St. Vitus School, which is located near three South Side scrap processing facilities.
St. Vitus is a Catholic-based learning center for students in kindergarten through eighth grade. Principal James Dailey contacted the Pennsylvania Department of Environmental Protection in response to a 2008 USA Today report.
The national publication used a model to rank the air quality of schools nationwide. St. Vitus was rated among the worst in terms of exposure to chemical and cancer-causing toxins.
Dailey questioned the findings, and the DEP obtained and tested samples to address the newspaper’s assertions.
“There is no cancer or anything involved,” Dailey said. “(The air) is fine for our kids.”
The DEP tested the air at the South Jefferson Street school from Oct. 23, 2009, through Nov. 11, 2009. The cancer risk levels were found to be within the U.S. Environmental Protection Agency’s acceptable range.
However, average concentrations of manganese measured just below an EPA “health benchmark.” Earlier this month, the DEP inspected Ferro Tech, New Castle Recycling, and PSC Metals to locate the source.
“We just want to make sure we have a full understanding of what is being emitted,” said Freda Tarbell, DEP spokeswoman. “We want to let folks know what we discovered is not an ... immediate jeopardy to anyone’s health.”
A Ferro Tech representative declined to comment on the DEP’s findings. Attempts to reach New Castle Recycling and PSC Metals officials for comments were unsuccessful.
Manganese, which is noncancerous, is a chemical used in the steel and iron industries. High levels of manganese can affect the nervous system, the DEP report said. In addition to testing for manganese, the state said it will monitor for smaller-sized particles and hexavalent chromium, an industrial chemical compound.
The DEP said it also will inspect other industries throughout the New Castle area in an effort to reduce exposure. The agency will contact St. Vitus and the city school district if issues arise.
“We haven’t had any notifications from the DEP that there are any problems with the schools,” said Paul Fulena, New Castle’s building and grounds director.
The hazards facing St. Vitus students are minimal. Based on DEP guidelines, to be at risk a person weighing 154 pounds would have to breathe approximately 5,200 gallons of affected air daily during a 70-year period.
“It’s so minute. The amounts were below the threshold,” Dailey said. “We have bright kids. They won’t be here in school for 70 years.”
***
(To see the Pennsylvania Department of Environmental Protection’s report on air testing in New Castle, visit www.dep.state.pa.us/dep/deputate/airwaste/aq/default.htm)
By Patrick E. Litowitz
New Castle News
A state environmental agency will examine the air quality of a New Castle parochial school during the next six months
Early indications are the air is more than fair at St. Vitus School, which is located near three South Side scrap processing facilities.
St. Vitus is a Catholic-based learning center for students in kindergarten through eighth grade. Principal James Dailey contacted the Pennsylvania Department of Environmental Protection in response to a 2008 USA Today report.
The national publication used a model to rank the air quality of schools nationwide. St. Vitus was rated among the worst in terms of exposure to chemical and cancer-causing toxins.
Dailey questioned the findings, and the DEP obtained and tested samples to address the newspaper’s assertions.
“There is no cancer or anything involved,” Dailey said. “(The air) is fine for our kids.”
The DEP tested the air at the South Jefferson Street school from Oct. 23, 2009, through Nov. 11, 2009. The cancer risk levels were found to be within the U.S. Environmental Protection Agency’s acceptable range.
However, average concentrations of manganese measured just below an EPA “health benchmark.” Earlier this month, the DEP inspected Ferro Tech, New Castle Recycling, and PSC Metals to locate the source.
“We just want to make sure we have a full understanding of what is being emitted,” said Freda Tarbell, DEP spokeswoman. “We want to let folks know what we discovered is not an ... immediate jeopardy to anyone’s health.”
A Ferro Tech representative declined to comment on the DEP’s findings. Attempts to reach New Castle Recycling and PSC Metals officials for comments were unsuccessful.
Manganese, which is noncancerous, is a chemical used in the steel and iron industries. High levels of manganese can affect the nervous system, the DEP report said. In addition to testing for manganese, the state said it will monitor for smaller-sized particles and hexavalent chromium, an industrial chemical compound.
The DEP said it also will inspect other industries throughout the New Castle area in an effort to reduce exposure. The agency will contact St. Vitus and the city school district if issues arise.
“We haven’t had any notifications from the DEP that there are any problems with the schools,” said Paul Fulena, New Castle’s building and grounds director.
The hazards facing St. Vitus students are minimal. Based on DEP guidelines, to be at risk a person weighing 154 pounds would have to breathe approximately 5,200 gallons of affected air daily during a 70-year period.
“It’s so minute. The amounts were below the threshold,” Dailey said. “We have bright kids. They won’t be here in school for 70 years.”
***
(To see the Pennsylvania Department of Environmental Protection’s report on air testing in New Castle, visit www.dep.state.pa.us/dep/deputate/airwaste/aq/default.htm)
Appeals court sides with district
November 30, 2009
Patrick E. Litowitz
New Castle News
A federal appeals court rejected a New Castle man’s effort to have his civil rights complaint reinstated.
The 3rd U.S. Circuit Court of Appeals, which covers western Pennsylvania, announced its decision Monday regarding Daniel Cook’s suit against the New Castle Area School District. Superintendent George Gabriel and school board President Fred Mozzocio were named in the action, in addition to building and grounds director Paul Fulena.
Patrick E. Litowitz
New Castle News
A federal appeals court rejected a New Castle man’s effort to have his civil rights complaint reinstated.
The 3rd U.S. Circuit Court of Appeals, which covers western Pennsylvania, announced its decision Monday regarding Daniel Cook’s suit against the New Castle Area School District. Superintendent George Gabriel and school board President Fred Mozzocio were named in the action, in addition to building and grounds director Paul Fulena.
“I’m disappointed, and Dan is disappointed,” said attorney Jonathan Solomon, who represents the Duquesne Street resident.
In his original suit, Cook alleged the district “eliminated his janitorial position, deliberately treated him unfairly at his new maintenance position and suppressed his speech because of his political support for certain local candidates in violation of his civil rights.”
The centerpiece of the dispute involved an Election Day discussion, which took place Nov. 6, 2007, between Cook and school cafeteria employee Jackie Trott. The pair discussed the district school board race.
Mozzocio learned of the conversation and reportedly called Andrew Gangliero, an assistant principal. Gangliero told Cook that Mozzocio wanted him to stop talking about the election or Mozzocio would come to the school and the situation might “get ugly.”
U.S. District Judge Gary L. Lancaster ruled on Dec. 16, 2008, that a legal dispute did not exist. The Pittsburgh-based judge issued a summary judgment supporting the district.
“In determining whether the dispute is genuine, the court’s function is not to weigh the evidence or to determine the truth of the matter, but only to determine whether the evidence of record is such that a reasonable jury could return a verdict,” Lancaster wrote.
Solomon and attorney John W. Smart, who represented the district, appeared before a three-judge panel on Oct. 28.
The appellate court agreed with Lancaster regarding the majority of his decision. The sides differed on the free speech argument.
Lancaster wrote that Cook’s talk with Trott was not a protected activity. He said the district’s ability to maintain a functional workplace outweighed Cook’s political discussion.
The appeals court countered that Cook’s conversation was protected under the Constitution. The question to resolve was — did Mozzocio’s action adversely affect Cook’s free speech?
“Mozzocio’s response to the cafeteria conversation was at most a verbal reprimand,” the court wrote in its opinion.
Verbal reprimands, the court noted, are not viewed as adversely affecting free speech.
Solomon said Cook and his co-workers feared casual conversation could result in a reprimand.
“That was a very big reason for us to take this appeal,” he said. “That scared the (heck) out of the other employees and members of the union.
“We’re not saying the employees have a right to campaign on company time.”
Cook has a state case pending against the district. The protection of free speech is also addressed under the state constitution.
Solomon looks for that matter to be resolved out of court.
“We ought to be able to come up with some accommodation with the district,” he said.
Attempts to reach Gabriel for comment were unsuccessful.
District solicitor Charles Sapienza said he had not reviewed the appeal court’s opinion and could not comment.
Subscribe to:
Posts (Atom)