Felasco’s bankruptcy case dismissed

September 26, 2006

By Pat Litowitz
New Castle News

Gary F. Felasco’s latest legal action prevents further public scrutiny of his financial dealings.

The former Lawrence County treasurer, convicted of theft charges, had his Chapter 13 bankruptcy case dismissed at his request on Sept. 13 in U.S. bankruptcy court in Pittsburgh.

In August, the New Castle News asked the court’s bankruptcy trustee, attorney Ronda J. Winnecour, for information regarding Felasco’s filing. The initial request dealt specifically with Felasco’s criminal trial and the payment of services for his defense attorney, James Ross of Beaver County.

The state filed criminal charges against Felasco on Sept. 7, 2005. A month later, the former Cunningham Avenue resident sought bankruptcy relief in the form of a Chapter 13 filing.

The cost of Ross’ services was not among Felasco’s debts provided to the court. Nor were Ross’ charges listed in updates with the court.

The News asked the court if financial details involving Ross should have been included.

“The Trustee is interested in matters such as you have raised in your inquiry,” court representative Richard J. Bedford wrote to The News in an e-mail. “The Trustee will ask debtor’s counsel to provide additional information in this case.”

A conciliation conference between Felasco’s bankruptcy attorney, Jason J. Mazzei, and the court took place Aug. 10 in Pittsburgh. During the conference, Mazzei agreed that Felasco would pay $1,655 a month on his debt plan.

A letter dated Aug. 17 to the county’s payroll administrator confirmed that amount.

A News representative, who attended the conference, asked Mazzei how Felasco would be able to repay his debt, because he is in prison.

Mazzei said it was Felasco’s intention to honor his financial obligations.

At that point, Mazzei was asked if he is required to divulge the identity of any person who would make payments in Felasco’s stead. Mazzei responded that the bankruptcy court would be interested in that information.

The News sent a follow-up e-mail to the bankruptcy court seeking clarification on how it would deal with issues raised by The News.

“(The Trustee) cannot answer your specific questions concerning any actions she might take in this case as these actions are not of public record,” David J. Schrempf wrote to The News in an e-mail.

Schrempf is the trustee office’s director of operations.

“This office can only provide that which are of public record.”

A representative of Mazzei’s office would not comment on why Felasco pursued a dismissal.

“We can’t comment because of the attorney-client privilege.”