Thursday, October 8, 2009
Students take part in Pinwheel for Peace effort
September 22, 2009
PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A child's toy and a simple message were the two ingredients of a worldwide effort.
"There shouldn't be fighting or wars," said K'von Tutson-Huddleston, a fifth-grader at George Washington Intermediate Elementary School.
Yesterday, students from George Washington and Harry W. Lockley Kindergarten Center participated in the fifth annual international Pinwheels for Peace."Pinwheels are one of the first symbols of childhood," said art teacher Ryan Miller, who organized the project at George Washington.
More than 700 fourth- through sixth-graders wrote poems about peace. Then, using markers, crayons and colored pencils, they created pinwheels. The school's fifth- and sixth-grade students placed their creations in the form of two peace signs in the school's front yard yesterday, while the fourth-graders lined the edge of the yard with their artwork.
"They understand the concept of peace," said Miller, who started the program in the district four years ago. "If they don't at the beginning, then at the end -- through the poems and talking about the project as a group -- they become more aware of what peace actually is."
Pinwheels for Peace is an offshoot of the United Nations' International Day of Peace, which is annually observed Sept. 21.
Sixth-graders Rosa Davies and Alexis Holmes each decorated their pinwheels with peace signs. "We can all come together," Rosa said. K'von highlighted one side of his pinwheel in New Castle's school colors -- black and red -- and the other side with a Christmas theme.
Following George Washington's lead, Lockley kindergarten teachers Chris Ferry, Sue DeRosa and Victoria Bober had their 62 students become involved.
"In our room, we talked about peace and getting along," DeRosa said. "We learned how to use your voice and not your fists to get along peacefully."
In addition to making pinwheels, the students crafted "peace sign" necklaces and engaged in role-playing exercises. Among the lessons taught were being nice, being kind and being helpful.
"All we asked them is, to draw something (on their pinwheels) that would make the world beautiful," Bober said.
Friends holding hands and rainbows were among the themes the children presented.
"They really do understand more than sometimes what you give them credit for," Bober said. "They do know there are wars going on in the world."
Fireman, paramedic deliver baby
Oct. 7, 2009
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
An air of excitement surrounds the birth of a newborn child.
Frank John Donnelly turned the thrill switch up a notch Friday night.
When Johnna Donnelly’s water broke around 10 p.m., she readied for the trip to the hospital. The Highland Avenue resident called her mother to come over and look after her oldest son. She then waited for her husband, John, to return from walking the dog.
Johnna Donnelly didn’t expect an at-home birth.
“It just happened that fast,” she said yesterday.
An hour passed, the baby started to crown. Donnelly said her mother panicked and called 911.
Good move.
A New Castle Fire Department crew — assistant fire chief Jim Donston, firefighter/paramedic Mike Kobbe and firefighter/paramedic Larry Coyne — was alerted at 11:04 p.m. and arrived four minutes later. A Noga Ambulance crew of Capt. Dan Yoder and Bobbi Motter was close behind.
“Childbirth was imminent,” Donston said. “I got on scene, and she was on the living room floor in labor.
“Before Dan got there, the head delivered.”
Yoder entered the room and Donston called him over.
“I walk around the corner (and) Jim says, ‘Dan, I got a problem here,’ ” Yoder said. “I run 1,000 calls a year — half of them in the city of New Castle, and probably 200 of them with Jim. And if Jim says, ‘There’s a problem’ — there’s a problem.”
The umbilical cord was wrapped around the baby’s neck, and the head had turned blue.
“I told her, ‘We’re in trouble here. With this next push, you’ve got to give it everything you have,” Donston said. “And she did.”
The initial push allowed Yoder to release the pressure created by the umbilical cord. Two more pushes: the baby’s out and the cord untangled.
Kobbe cut the cord. Yoder suctioned the baby’s mouth and nose. Within a minute, the blue disappeared, replaced by a pink color.
Meet Frank John Donnelly — 8 pounds, 2 ounces and 20 inches long. Time and date of birth: 11:12 p.m. Oct. 2, 2009.
“Sometimes women will be in labor for 20 hours after their water (breaks),” Kobbe said. “It was one of those cases where it happened really quick.
“It was a very healthy delivery. The baby was perfect. There were no complications other than the cord.”
Yoder stimulated the baby, dried him, warmed the child and handed off the crying newborn to Motter. The baby, placed in a foil blanket and towel, and mother then headed to Jameson Hospital.
“It was perfectly timed,” Johnna Donnelly joked. “I’m tired, sore.”
Mother and son remained in the hospital for two days as Frank John was kept on oxygen and monitored.
“The fire department here is phenomenal,” Donnelly said. “They are great first responders.”
In addition to the fire department and Noga, she thanked the maternity ward nurses and Dr. Pek Teh for their care.
“It’s nice to bring somebody into the world,” Yoder said, “instead of ... trying to keep them from leaving.”
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
An air of excitement surrounds the birth of a newborn child.
Frank John Donnelly turned the thrill switch up a notch Friday night.
When Johnna Donnelly’s water broke around 10 p.m., she readied for the trip to the hospital. The Highland Avenue resident called her mother to come over and look after her oldest son. She then waited for her husband, John, to return from walking the dog.
Johnna Donnelly didn’t expect an at-home birth.
“It just happened that fast,” she said yesterday.
An hour passed, the baby started to crown. Donnelly said her mother panicked and called 911.
Good move.
A New Castle Fire Department crew — assistant fire chief Jim Donston, firefighter/paramedic Mike Kobbe and firefighter/paramedic Larry Coyne — was alerted at 11:04 p.m. and arrived four minutes later. A Noga Ambulance crew of Capt. Dan Yoder and Bobbi Motter was close behind.
“Childbirth was imminent,” Donston said. “I got on scene, and she was on the living room floor in labor.
“Before Dan got there, the head delivered.”
Yoder entered the room and Donston called him over.
“I walk around the corner (and) Jim says, ‘Dan, I got a problem here,’ ” Yoder said. “I run 1,000 calls a year — half of them in the city of New Castle, and probably 200 of them with Jim. And if Jim says, ‘There’s a problem’ — there’s a problem.”
The umbilical cord was wrapped around the baby’s neck, and the head had turned blue.
“I told her, ‘We’re in trouble here. With this next push, you’ve got to give it everything you have,” Donston said. “And she did.”
The initial push allowed Yoder to release the pressure created by the umbilical cord. Two more pushes: the baby’s out and the cord untangled.
Kobbe cut the cord. Yoder suctioned the baby’s mouth and nose. Within a minute, the blue disappeared, replaced by a pink color.
Meet Frank John Donnelly — 8 pounds, 2 ounces and 20 inches long. Time and date of birth: 11:12 p.m. Oct. 2, 2009.
“Sometimes women will be in labor for 20 hours after their water (breaks),” Kobbe said. “It was one of those cases where it happened really quick.
“It was a very healthy delivery. The baby was perfect. There were no complications other than the cord.”
Yoder stimulated the baby, dried him, warmed the child and handed off the crying newborn to Motter. The baby, placed in a foil blanket and towel, and mother then headed to Jameson Hospital.
“It was perfectly timed,” Johnna Donnelly joked. “I’m tired, sore.”
Mother and son remained in the hospital for two days as Frank John was kept on oxygen and monitored.
“The fire department here is phenomenal,” Donnelly said. “They are great first responders.”
In addition to the fire department and Noga, she thanked the maternity ward nurses and Dr. Pek Teh for their care.
“It’s nice to bring somebody into the world,” Yoder said, “instead of ... trying to keep them from leaving.”
District feels state budget fallout
Oct. 8, 2009
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
The $5.3 million check is not in the mail.
Hiring a bill collector sounds tempting, but Joseph Ambrosini knows the effort would be futile. So the New Castle Area business manager — and his 499 counterparts — must wait for a resolution to the state budget impasse.
The city school board passed a $38 million budget for the 2009-2010 year. Ambrosini said that since July, the district paid $6 million for salaries, debt service and other expenditures.
“Most school districts have been able to weather the storm,” he said. “The biggest portion of state subsidy that we receive is basic education subsidy. We missed an approximately $3 million payment in August.”
The state also provides block grants and special education funding. Overall, New Castle has been shorted $5.3 million.
A $6.7 million budget reserve in addition to $2.5 million received from property and payroll taxes have kept the district operating. The school system also receives federal dollars.
Ambrosini does not foresee revamping the district’s spending plan. One casualty, though, is a study focusing on the future of the city’s primary and kindergarten centers. Those plans remain uncertain until budget details are finalized.
“School districts are required to have their budgets in on time,” board member Karen Humphrey said. “I would hope the people in Harrisburg recognize the importance of having their budget in place.”
Ambrosini said the next state subsidy payment of $3.5 million is scheduled for December.
“To go beyond that point, then districts would have to come up with financial mechanisms, such as a line of credit,” he said.
Ambrosini said securing credit would be the worst-case scenario. If a budget is not approved by December, he is prepared to propose to the school board that the district obtain a $4 million to $5 million credit line.
“There are financial institutions that are currently writing them for school districts,” he said.
Ambrosini said he is in preliminary discussions with Pittsburgh-based PNC Bank.
Humphrey said the Midwestern Intermediate Unit IV, which serves 27 school districts in Beaver, Lawrence and Mercer counties, discussed the loss of funding at the board’s September meeting.
“Business manager Bob Barber said he wasn’t ready to come and ask for it at that time,” said Humphrey, who sits on the 13-member board. “By the end of October, they would ask for approval.
“He said it would be the proper course of action he would need to take in order to meet payroll and other expenses.”
Ambrosini said the impasse has forced districts to keep cash readily available and out of investment funds.
“However, certificates of deposit are not getting the best return on investment.”
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
The $5.3 million check is not in the mail.
Hiring a bill collector sounds tempting, but Joseph Ambrosini knows the effort would be futile. So the New Castle Area business manager — and his 499 counterparts — must wait for a resolution to the state budget impasse.
The city school board passed a $38 million budget for the 2009-2010 year. Ambrosini said that since July, the district paid $6 million for salaries, debt service and other expenditures.
“Most school districts have been able to weather the storm,” he said. “The biggest portion of state subsidy that we receive is basic education subsidy. We missed an approximately $3 million payment in August.”
The state also provides block grants and special education funding. Overall, New Castle has been shorted $5.3 million.
A $6.7 million budget reserve in addition to $2.5 million received from property and payroll taxes have kept the district operating. The school system also receives federal dollars.
Ambrosini does not foresee revamping the district’s spending plan. One casualty, though, is a study focusing on the future of the city’s primary and kindergarten centers. Those plans remain uncertain until budget details are finalized.
“School districts are required to have their budgets in on time,” board member Karen Humphrey said. “I would hope the people in Harrisburg recognize the importance of having their budget in place.”
Ambrosini said the next state subsidy payment of $3.5 million is scheduled for December.
“To go beyond that point, then districts would have to come up with financial mechanisms, such as a line of credit,” he said.
Ambrosini said securing credit would be the worst-case scenario. If a budget is not approved by December, he is prepared to propose to the school board that the district obtain a $4 million to $5 million credit line.
“There are financial institutions that are currently writing them for school districts,” he said.
Ambrosini said he is in preliminary discussions with Pittsburgh-based PNC Bank.
Humphrey said the Midwestern Intermediate Unit IV, which serves 27 school districts in Beaver, Lawrence and Mercer counties, discussed the loss of funding at the board’s September meeting.
“Business manager Bob Barber said he wasn’t ready to come and ask for it at that time,” said Humphrey, who sits on the 13-member board. “By the end of October, they would ask for approval.
“He said it would be the proper course of action he would need to take in order to meet payroll and other expenses.”
Ambrosini said the impasse has forced districts to keep cash readily available and out of investment funds.
“However, certificates of deposit are not getting the best return on investment.”
Wednesday, September 9, 2009
Board awaits facilities report
Aug. 27, 2009
Board awaits facilities report
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A report offering guidance to the New Castle Area School Board will be released soon.
Donna Donati hopes it doesn’t sit on a shelf.
“I would like them to take it seriously,” she said.
While board president, Donati established a community-based committee a year ago to determine the district’s facility needs. The group centered on the kindergarten and primary centers.
A part of the equation involved the buildings. Declining district enrollment and project funding were two other pieces. While the needs were obvious, financial and political pressures are expected to steer the board’s decision.
“This isn’t a great time to propose anything,” said David A. Esposito of Eckles Architecture and Engineering, which is overseeing the study. “There’s so much uncertainty with the governor’s budget.”
Superintendent George Gabriel said he anticipates the committee’s final meeting to take place next month.
Eckles presented eight options to the group in June. The architectural firm then narrowed its focus to two proposals. Once would update the Harry W. Lockley kindergarten center in addition to the John F. Kennedy, Thaddeus Stevens and West Side primary centers. The other plan involves the construction of a primary center and renovation of the kindergarten center.
Committee member Kimberly Koller-Jones said consolidation of district facilities makes sense.
“It’s all about making choices,” she said. “(The board) would almost have to go on a campaign and explain why (to the residents).”
The committee asked Esposito to investigate additional funding sources. He will present the information at the group’s next gathering.
The state budget crisis also has influenced the process.
“Part of the report involves incorporating some of the district’s programs,” Donati said. “If those programs are not funded, it impacts how consolidation is done.”
Once the report is finalized, the board has two years to act. After that, the Pennsylvania Department of Education requires an updated study.
“It’s not like it’s milk and the report spoils,” Esposito said. “(However,) the longer it drags out there’s inflation and costs dragging out.”
Whatever the committee’s recommendations, Donati doesn’t expect board support. She questioned whether her peers are concerned with declining enrollment and the associated issues of salaries and transportation costs.
“They are mainly interested in just the moment,” she said. “They don’t think about the ramifications of policies.”
Gabriel said he expects the board to review current finances and fiscal projections before committing to the project.
“We have been and continue to look at staffing,” he added.
Board awaits facilities report
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A report offering guidance to the New Castle Area School Board will be released soon.
Donna Donati hopes it doesn’t sit on a shelf.
“I would like them to take it seriously,” she said.
While board president, Donati established a community-based committee a year ago to determine the district’s facility needs. The group centered on the kindergarten and primary centers.
A part of the equation involved the buildings. Declining district enrollment and project funding were two other pieces. While the needs were obvious, financial and political pressures are expected to steer the board’s decision.
“This isn’t a great time to propose anything,” said David A. Esposito of Eckles Architecture and Engineering, which is overseeing the study. “There’s so much uncertainty with the governor’s budget.”
Superintendent George Gabriel said he anticipates the committee’s final meeting to take place next month.
Eckles presented eight options to the group in June. The architectural firm then narrowed its focus to two proposals. Once would update the Harry W. Lockley kindergarten center in addition to the John F. Kennedy, Thaddeus Stevens and West Side primary centers. The other plan involves the construction of a primary center and renovation of the kindergarten center.
Committee member Kimberly Koller-Jones said consolidation of district facilities makes sense.
“It’s all about making choices,” she said. “(The board) would almost have to go on a campaign and explain why (to the residents).”
The committee asked Esposito to investigate additional funding sources. He will present the information at the group’s next gathering.
The state budget crisis also has influenced the process.
“Part of the report involves incorporating some of the district’s programs,” Donati said. “If those programs are not funded, it impacts how consolidation is done.”
Once the report is finalized, the board has two years to act. After that, the Pennsylvania Department of Education requires an updated study.
“It’s not like it’s milk and the report spoils,” Esposito said. “(However,) the longer it drags out there’s inflation and costs dragging out.”
Whatever the committee’s recommendations, Donati doesn’t expect board support. She questioned whether her peers are concerned with declining enrollment and the associated issues of salaries and transportation costs.
“They are mainly interested in just the moment,” she said. “They don’t think about the ramifications of policies.”
Gabriel said he expects the board to review current finances and fiscal projections before committing to the project.
“We have been and continue to look at staffing,” he added.
Felasco receives 3 years probation
Sept. 9, 2009
Felasco receives 3 years probation
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
PITTSBURGH — Judge Gustave Diamond refused to excuse Gary F. Felasco’s criminal conduct during yesterday’s sentencing hearing.
However, the U.S. senior district justice could not ignore what the former Lawrence County treasurer has told federal authorities since August 2006.
Facing four to 10 months in prison, Felasco received three years probation for failing to file a 2005 federal tax return. The first six months will be spent under home detention.
“(Felasco) has brought to light some mind-boggling (allegations of) corruption in Lawrence County,” Assistant U.S. Attorney Brendan T. Conway said.
“We have been able to corroborate everything Mr. Felasco has said. We believe he will continue to cooperate.”
Felasco’s attorney, James J. Ross, and Conway each said Felasco has acted “exemplary.” Investigations have been initiated as a result.
“The cooperation has been truthful and complete,” Ross said.
One such effort involves a mortgage fraud probe centered on Affordable Housing of Lawrence County and First Commonwealth Bank.
Robert Ratkovich of 512 Norwood Ave. pleaded guilty to one count of bank and mail fraud conspiracy and one count of money laundering conspiracy. He is scheduled to be sentenced Oct. 28.
Neshannock Township resident Anthony J. Staph Jr. entered a “not guilty” plea on July 21 in response to one count of bank fraud. Pretrial motions in his case will take place Oct. 30.
Nicholas DeRosa of 221 N. Cascade St. is scheduled to be arraigned at 9:30 a.m. Oct. 1 on one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy.
To keep details of his assistance confidential, Diamond approved the government’s motion to have its sentencing report sealed.
“The public revelation of the extent of (Felasco’s) cooperation would unfairly reveal information related in individuals that have not been charged with criminal offense and may detrimentally effect ongoing investigations,” the government wrote.
Diamond agreed that Felasco’s cooperation has been substantial. He said he expects future indictments as a result.
Despite the nature of Felasco’s crime, the judge said his cooperation should be rewarded.
“I’m just sorry for the harm I caused so many people,” Felasco said to the judge.
As a condition of the probation, Diamond ordered the Warren, Pa., resident to make arrangements with the Internal Revenue Service for the payment of back taxes, penalties and interest.
Felasco’s presentence report, issued in late July, noted the IRS did not collect $10,000 for the 2005 tax year. Felasco earned $44,568 as county treasurer in 2005. He collected an additional $35,000, which the government said he received as the result of alleged illegal activity relating to Affordable Housing.
Diamond did not levy a fine against Felasco, who does not work as the result of a undisclosed disability.
Another federal agency, the U.S. Department of Housing and Urban Development, has maintained an interest in the cases involving Felasco and Affordable Housing. HUD funds were used in the creation of the nonprofit housing agency.
“At this time, HUD will await the outcome of the ongoing legal proceedings and then determine the appropriate steps to protect the taxpayer’s interest,” said Maria Bynum, HUD’s regional public affairs director in Philadelphia.
Felasco receives 3 years probation
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
PITTSBURGH — Judge Gustave Diamond refused to excuse Gary F. Felasco’s criminal conduct during yesterday’s sentencing hearing.
However, the U.S. senior district justice could not ignore what the former Lawrence County treasurer has told federal authorities since August 2006.
Facing four to 10 months in prison, Felasco received three years probation for failing to file a 2005 federal tax return. The first six months will be spent under home detention.
“(Felasco) has brought to light some mind-boggling (allegations of) corruption in Lawrence County,” Assistant U.S. Attorney Brendan T. Conway said.
“We have been able to corroborate everything Mr. Felasco has said. We believe he will continue to cooperate.”
Felasco’s attorney, James J. Ross, and Conway each said Felasco has acted “exemplary.” Investigations have been initiated as a result.
“The cooperation has been truthful and complete,” Ross said.
One such effort involves a mortgage fraud probe centered on Affordable Housing of Lawrence County and First Commonwealth Bank.
Robert Ratkovich of 512 Norwood Ave. pleaded guilty to one count of bank and mail fraud conspiracy and one count of money laundering conspiracy. He is scheduled to be sentenced Oct. 28.
Neshannock Township resident Anthony J. Staph Jr. entered a “not guilty” plea on July 21 in response to one count of bank fraud. Pretrial motions in his case will take place Oct. 30.
Nicholas DeRosa of 221 N. Cascade St. is scheduled to be arraigned at 9:30 a.m. Oct. 1 on one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy.
To keep details of his assistance confidential, Diamond approved the government’s motion to have its sentencing report sealed.
“The public revelation of the extent of (Felasco’s) cooperation would unfairly reveal information related in individuals that have not been charged with criminal offense and may detrimentally effect ongoing investigations,” the government wrote.
Diamond agreed that Felasco’s cooperation has been substantial. He said he expects future indictments as a result.
Despite the nature of Felasco’s crime, the judge said his cooperation should be rewarded.
“I’m just sorry for the harm I caused so many people,” Felasco said to the judge.
As a condition of the probation, Diamond ordered the Warren, Pa., resident to make arrangements with the Internal Revenue Service for the payment of back taxes, penalties and interest.
Felasco’s presentence report, issued in late July, noted the IRS did not collect $10,000 for the 2005 tax year. Felasco earned $44,568 as county treasurer in 2005. He collected an additional $35,000, which the government said he received as the result of alleged illegal activity relating to Affordable Housing.
Diamond did not levy a fine against Felasco, who does not work as the result of a undisclosed disability.
Another federal agency, the U.S. Department of Housing and Urban Development, has maintained an interest in the cases involving Felasco and Affordable Housing. HUD funds were used in the creation of the nonprofit housing agency.
“At this time, HUD will await the outcome of the ongoing legal proceedings and then determine the appropriate steps to protect the taxpayer’s interest,” said Maria Bynum, HUD’s regional public affairs director in Philadelphia.
DeRosa arraignment moved again
September 2, 2009
Nicholas DeRosa’s arraignment in a mortgage fraud case has been moved a second time.
A federal grand jury indicted the retired New Castle school administrator on one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy. The charges, announced July 14, are the result of an investigation involving Affordable Housing of Lawrence County and First Commonwealth Bank.
DeRosa was scheduled to appear in court this morning in downtown Pittsburgh. His new arraignment is set for 9:30 a.m. Oct. 1 before U.S. Magistrate Judge Robert C. Mitchell.
A potential conflict of interest arose between DeRosa and his attorney, Efrem M. Grail of Reed Smith LLP in Pittsburgh. Grail is being considered for the appointment of U.S. Attorney for the Western District of Pennsylvania.
A replacement for current U.S. Attorney Mary Beth Buchanan has not been named.
In paperwork filed Aug. 27, Grail said DeRosa wishes to retain him as counsel.
Despite the government’s objection to Grail’s motion, U.S. Magistrate Amy Reynolds Hay approved the request.
Wednesday, August 26, 2009
New Castle school district to hear choices for buildings
June 10, 2009
By Patrick E.Litowitz
plitowitz@ncnewsonline.com
By Patrick E.Litowitz
plitowitz@ncnewsonline.com
Two options offer a number of choices for a group reviewing the New Castle school district’s building needs.
The committee — featuring board members, administration and district residents — will recommend to the school board whether the district should renovate, add, alter or maintain its facilities. Its decision could come as early as June 22, when the group meets next.
Earlier this month, Eckles Architecture and Engineering provided eight proposals but focused on two: modernizing the kindergarten and primary centers or building a new primary center and renovating the current kindergarten center.
“Current primary facilities date back to over 45 years and are in need of both programmatic and physical upgrades due to a natural progression in educational delivery, spatial needs and material wear,” Eckles’ David A. Esposito wrote in his interim report.
It is not a simple matter of selecting Choice A over Choice B.
The cost can run as low as $5.7 million to modernize Harry W. Lockley Primary Center, with the state reimbursing the district $3.7 million.
On the high end, the project would total $32.7 million. That would allow for an overhauled kindergarten center and the construction of a building to hold the district’s first- though third-graders. That facility would be built on a new site.
After the state’s $9.8 million reimbursement, the district’s price tag is $22 million.
The board can reject the committee’s decision, come up with its own plan or do nothing.
Projected enrollment is driving the district to review how it uses its buildings. The state Department of Education, using a 10-year model, forecasts a loss of 500 students by 2017.
Committee member David Gettings suggested a proper gauge would be an 18-year projection, which follows a student from birth to graduation.
“With few exceptions in western Pennsylvania, where districts are growing, the rest are expecting declining enrollments,” Esposito said.
Stan Magusiak, assistant to the superintendent, noted that the state’s numbers traditionally have been accurate.
While enrollment in grades four through 12 is expected to decline, the numbers for kindergarten through third grade are supposed to remain stable.
“I don’t know how you can reconcile the two,” Superintendent George Gabriel said.
Before moving forward, the committee wants to examine additional cost-saving measures. Members suggested finding grants that promote environmental-friendly buildings.
“We need to do a bit of fine-tuning,” Gabriel said.
Felasco’s sentencing hearing rescheduled
Aug. 19, 2009
Gary F. Felasco’s sentencing hearing, scheduled for today, has been moved to 11 a.m. Sept. 8.
The former Lawrence County treasurer pleaded guilty in February to one count of failing to file a 2005 federal tax return.
Charged with a misdemeanor, Felasco faces four to 10 months in prison and possible fines. The U.S. Attorney’s Office said the charge was separate but related to a mortgage fraud case involving Affordable Housing of Lawrence County and First Commonwealth Bank.
Brendan T. Conway, assistant U.S. Attorney, sought the continuance. Conway said the government required additional time to file a recommendation requesting a sentence reduction. In paperwork filed yesterday, the government acknowledged Felasco’s ongoing cooperation “in various investigations.”
U.S. District Judge Gustave Diamond approved the request.
Friday, August 14, 2009
Thursday, August 13, 2009
Felasco requests probation next week
Aug. 13. 2009
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Gary F. Felasco has asked a federal judge to place him on probation as punishment in a tax evasion case.
The former Lawrence County treasurer pleaded guilty in February to one count of failing to file a 2005 federal tax return. U.S. District Judge Gustave Diamond will sentence Felasco at 11:30 a.m. Aug. 20.
Felasco’s attorney, James J. Ross, said his client’s cooperation and “extraordinary acceptance of responsibility” warranted a reduced sentence. He made the request July 29.
Charged with a misdemeanor, Felasco faces four to 10 months in prison and possible fines. The U.S. Attorney’s Office said the charge was separate but related to a mortgage fraud case involving Affordable Housing of Lawrence County and First Commonwealth Bank.
According to Ross, Felasco met with federal investigators prior to entering state prison in August 2006.
The initial meeting took place after his May 2006 conviction on state charges of theft by failure to make required disposition of funds, misappropriation of entrusted property, embezzlement and conflict of interest. Felasco served one year in prison but remains on parole until 2013.
“From the very outset, (Felasco) has cooperated with the United States in an ongoing investigation since that time,” Ross wrote. “He has met with Federal Agents on a number of occasions of very lengthy debriefings and has provided information that led to the indictment of ... other individuals.”
Three county residents have been charged in the Affordable Housing scandal.
Anthony J. Staph Jr. of 132 Firestone Drive, Neshannock, pleaded not guilty July 21 to one count of bank fraud. Pretrial motions in his case will take place Oct. 30.
Robert Ratkovich of 512 Norwood Ave. pleaded guilty July 28 to one count of bank and mail fraud conspiracy and one count of money laundering conspiracy. He is scheduled to be sentenced Oct. 28.
A federal grand jury indicted Nicholas DeRosa, 64, of 221 N. Cascade St. on one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy. His arraignment is scheduled for 9:30 a.m. Aug. 31.
Ross noted that Felasco is unable to pay fines that may be assessed. The attorney asked Diamond to consider community service as an alternative.
“(Felasco) wants to make it perfectly clear that he is not attempting to shun his responsibility here,” Ross wrote.
The government is not seeking restitution of the $10,000 owed for the 2005 tax year.
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Gary F. Felasco has asked a federal judge to place him on probation as punishment in a tax evasion case.
The former Lawrence County treasurer pleaded guilty in February to one count of failing to file a 2005 federal tax return. U.S. District Judge Gustave Diamond will sentence Felasco at 11:30 a.m. Aug. 20.
Felasco’s attorney, James J. Ross, said his client’s cooperation and “extraordinary acceptance of responsibility” warranted a reduced sentence. He made the request July 29.
Charged with a misdemeanor, Felasco faces four to 10 months in prison and possible fines. The U.S. Attorney’s Office said the charge was separate but related to a mortgage fraud case involving Affordable Housing of Lawrence County and First Commonwealth Bank.
According to Ross, Felasco met with federal investigators prior to entering state prison in August 2006.
The initial meeting took place after his May 2006 conviction on state charges of theft by failure to make required disposition of funds, misappropriation of entrusted property, embezzlement and conflict of interest. Felasco served one year in prison but remains on parole until 2013.
“From the very outset, (Felasco) has cooperated with the United States in an ongoing investigation since that time,” Ross wrote. “He has met with Federal Agents on a number of occasions of very lengthy debriefings and has provided information that led to the indictment of ... other individuals.”
Three county residents have been charged in the Affordable Housing scandal.
Anthony J. Staph Jr. of 132 Firestone Drive, Neshannock, pleaded not guilty July 21 to one count of bank fraud. Pretrial motions in his case will take place Oct. 30.
Robert Ratkovich of 512 Norwood Ave. pleaded guilty July 28 to one count of bank and mail fraud conspiracy and one count of money laundering conspiracy. He is scheduled to be sentenced Oct. 28.
A federal grand jury indicted Nicholas DeRosa, 64, of 221 N. Cascade St. on one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy. His arraignment is scheduled for 9:30 a.m. Aug. 31.
Ross noted that Felasco is unable to pay fines that may be assessed. The attorney asked Diamond to consider community service as an alternative.
“(Felasco) wants to make it perfectly clear that he is not attempting to shun his responsibility here,” Ross wrote.
The government is not seeking restitution of the $10,000 owed for the 2005 tax year.
Wednesday, August 12, 2009
DeRosa fraud hearing postponed
August 3, 2009
By Patrick E. Litowitz
plitowitz@ncnewsonline.com
By Patrick E. Litowitz
plitowitz@ncnewsonline.com
The possibility of a presidential appointment delayed a New Castle man’s arraignment in federal court.
Nicholas DeRosa’s scheduled appearance yesterday in Pittsburgh has been moved to 9:30 a.m. Aug. 31 before U.S. Magistrate Amy Reynolds Hay.
A potential conflict of interest arose between DeRosa and his attorney, Efrem M. Grail of Reed Smith LLP in Pittsburgh. Grail is being considered for the appointment of U.S. Attorney for the Western District of Pennsylvania.
“This request is not made lightly,” Grail wrote in his motion to Hay. “It results from unusual circumstances presented by counsel’s unique and sensitive situation.”
Grail sought the continuance Wednesday. Hay approved the postponement yesterday.
“Under the circumstances, it would be a disservice to Mr. DeRosa for counsel in such a position to undertake his representation before this Court.”
A federal grand jury indicted the retired school administrator on one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy. The charges, announced July 14, are the result of a mortgage fraud investigation involving Affordable Housing of Lawrence County and First Commonwealth Bank.
The Pittsburgh Post-Gazette reported July 13 that a selection committee interviewed candidates for the three U.S. Attorney positions in Pennsylvania. The finalists’ names will be forwarded to U.S. Sens. Bob Casey and Arlen Specter, who will submit them to the Obama administration.
The Senate ultimately will confirm the nominations. A decision is expected by mid-August. If Grail is not approved, he would continue to represent DeRosa.
The successful candidate for the Western District will replace Mary Beth Buchanan. Buchanan, who has served since September 2001, was appointed by then-President George W. Bush.
District scores a threepeat with state
Aug. 12., 2009
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
The New Castle Area School District met the state’s academic standards for the third consecutive year.
In a preliminary report released last month, the Pennsylvania Department of Education said the school system obtained Adequate Yearly Progress status for the 2008-09 school year.
To earn the designation, the district was required to meet or exceed targets in graduation and attendance; academic performance; and the Pennsylvania System of School Assessment test.
“This is a first for the district,” Superintendent George Gabriel said. “We’re ecstatic.
“It validates the instructional strategies we implemented are working.”
The assessment covers third-graders attending Thaddeus Stevens, West Side and John F. Kennedy primary centers; fourth- through sixth-grade students at George Washington Intermediate School; and seventh-, eighth- and 11th-graders at the junior-senior high school.
“We give (the students) a preassessment in line with state standards,” Gabriel said.
The tests are given four times during the school year. The PSSA test is administered in the spring.
“We have a pretty good idea how our scores are going to turn out.”
Students take exams in math, reading, writing and science. The math and reading components are used in determining the district’s performance.
To obtain Adequate Yearly Progress in math, 56 percent of the students must be advanced or proficient in the subject. In reading, the standard is 63 percent.
This past school year, 83 percent of the senior class graduated. The state target is 80 percent.
The district had until Aug. 3 to appeal any findings.
“I don’t anticipate any changes,” Gabriel said.
Parents will receive reports outlining their children’s scores this month.
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
The New Castle Area School District met the state’s academic standards for the third consecutive year.
In a preliminary report released last month, the Pennsylvania Department of Education said the school system obtained Adequate Yearly Progress status for the 2008-09 school year.
To earn the designation, the district was required to meet or exceed targets in graduation and attendance; academic performance; and the Pennsylvania System of School Assessment test.
“This is a first for the district,” Superintendent George Gabriel said. “We’re ecstatic.
“It validates the instructional strategies we implemented are working.”
The assessment covers third-graders attending Thaddeus Stevens, West Side and John F. Kennedy primary centers; fourth- through sixth-grade students at George Washington Intermediate School; and seventh-, eighth- and 11th-graders at the junior-senior high school.
“We give (the students) a preassessment in line with state standards,” Gabriel said.
The tests are given four times during the school year. The PSSA test is administered in the spring.
“We have a pretty good idea how our scores are going to turn out.”
Students take exams in math, reading, writing and science. The math and reading components are used in determining the district’s performance.
To obtain Adequate Yearly Progress in math, 56 percent of the students must be advanced or proficient in the subject. In reading, the standard is 63 percent.
This past school year, 83 percent of the senior class graduated. The state target is 80 percent.
The district had until Aug. 3 to appeal any findings.
“I don’t anticipate any changes,” Gabriel said.
Parents will receive reports outlining their children’s scores this month.
Wednesday, July 29, 2009
REPORT: Felasco 'associates' provided former treasurer with $35,000
July 29, 2009
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Two associates of Gary F. Felasco channeled $35,000 to assist the former Lawrence County treasurer with his legal bills.
The disclosure appeared in a federal Probation Office’s pre-sentence investigation and report issued yesterday.
In February, Felasco pleaded guilty to a misdemeanor charge of failing to file a 2005 federal tax return. The U.S. Attorney’s Office said the charge was separate but related to the case involving Affordable Housing of Lawrence County and First Commonwealth Bank.
The Warren, Pa., resident will be sentenced at 11:30 a.m. Aug. 10 in U.S. District Court, Pittsburgh.
Felasco’s troubles began in September 2005 while he served as county treasurer. He was indicted on charges of theft by failure to make required disposition of funds, misappropriation of entrusted property, embezzlement and conflict of interest.
A Venango County jury found him guilty on all charges in May 2006.
“To help pay his attorney’s fees related to the state criminal case, (Felasco) received $35,000 in cash from two associates, which was funneled through his mother, Helen Felasco, and her boyfriend, Randy Janiel,” the report said.
The associates were not identified.
The report said the money was deposited in Janiel’s business account at ESB Bank. Records show three checks amounting to $40,000 were written from Janiel’s account to the law firm of Bowers, Ross & Fawcett to pay for Felasco’s defense.
Attorney James J. Ross represented Felasco in his state case. He is overseeing Felasco’s federal complaint.
The government said the money was neither a loan nor a gift but obtained as the result of illegal activity. Felasco’s 2005 federal tax return should have included $44,568 in earnings as treasurer and the $35,000. The government failed to collect approximately $10,000 as a result.
The report offered a variety of sentencing options, which include prison time, probation, parole, home detention and fines.
“It does not appear that (Felasco) has the current ability to pay a fine nor is likely that he will become able to pay any fine,” the report concluded.
Sentenced in August of 2006 to one to seven years in state prison, Felasco served the minimum term but remains on parole until 2013.
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Two associates of Gary F. Felasco channeled $35,000 to assist the former Lawrence County treasurer with his legal bills.
The disclosure appeared in a federal Probation Office’s pre-sentence investigation and report issued yesterday.
In February, Felasco pleaded guilty to a misdemeanor charge of failing to file a 2005 federal tax return. The U.S. Attorney’s Office said the charge was separate but related to the case involving Affordable Housing of Lawrence County and First Commonwealth Bank.
The Warren, Pa., resident will be sentenced at 11:30 a.m. Aug. 10 in U.S. District Court, Pittsburgh.
Felasco’s troubles began in September 2005 while he served as county treasurer. He was indicted on charges of theft by failure to make required disposition of funds, misappropriation of entrusted property, embezzlement and conflict of interest.
A Venango County jury found him guilty on all charges in May 2006.
“To help pay his attorney’s fees related to the state criminal case, (Felasco) received $35,000 in cash from two associates, which was funneled through his mother, Helen Felasco, and her boyfriend, Randy Janiel,” the report said.
The associates were not identified.
The report said the money was deposited in Janiel’s business account at ESB Bank. Records show three checks amounting to $40,000 were written from Janiel’s account to the law firm of Bowers, Ross & Fawcett to pay for Felasco’s defense.
Attorney James J. Ross represented Felasco in his state case. He is overseeing Felasco’s federal complaint.
The government said the money was neither a loan nor a gift but obtained as the result of illegal activity. Felasco’s 2005 federal tax return should have included $44,568 in earnings as treasurer and the $35,000. The government failed to collect approximately $10,000 as a result.
The report offered a variety of sentencing options, which include prison time, probation, parole, home detention and fines.
“It does not appear that (Felasco) has the current ability to pay a fine nor is likely that he will become able to pay any fine,” the report concluded.
Sentenced in August of 2006 to one to seven years in state prison, Felasco served the minimum term but remains on parole until 2013.
Tuesday, July 28, 2009
Staph pleads not guilty to bank fraud
July 22, 2009
A Neshannock Township resident returned to federal court in Pittsburgh.
Real estate appraiser Anthony J. Staph Jr., 43, of 132 Firestone Drive pleaded not guilty yesterday to one count of bank fraud.
A similar count was dismissed when the U.S. Attorney’s Office filed a superseding indictment last week against Staph and Nicholas DeRosa, 64, of 221 N. Cascade St. The government claimed the pair, along with Robert Ratkovich, 40, of 512 Norwood Ave., engaged in mortgage fraud.
The alleged fraud focuses on First Commonwealth Bank and Affordable Housing of Lawrence County, a defunct, nonprofit housing agency.
Staph’s prior plea occurred in February.
A Neshannock Township resident returned to federal court in Pittsburgh.
Real estate appraiser Anthony J. Staph Jr., 43, of 132 Firestone Drive pleaded not guilty yesterday to one count of bank fraud.
A similar count was dismissed when the U.S. Attorney’s Office filed a superseding indictment last week against Staph and Nicholas DeRosa, 64, of 221 N. Cascade St. The government claimed the pair, along with Robert Ratkovich, 40, of 512 Norwood Ave., engaged in mortgage fraud.
The alleged fraud focuses on First Commonwealth Bank and Affordable Housing of Lawrence County, a defunct, nonprofit housing agency.
Staph’s prior plea occurred in February.
Ratkovich pleads guilty to fraud
July 29, 2009
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
PITTSBURGH – A former New Castle councilman and housing consultant admitted that he conspired to defraud a Pennsylvania-based bank.
“Guilty, your honor,” Robert Ratkovich said yesterday in federal court.
Ratkovich, 40, of 512 Norwood Ave. waived his indictment, arraignment and plea hearing before U.S. District Judge Gustave Diamond. He pleaded guilty to one count of bank and mail fraud conspiracy and one count of money laundering conspiracy.
“The long and short of it is, you provided (inflated) information,” Diamond said during the hourlong hearing.
The U.S. Attorney’s Office alleged Ratkovich and Nicholas DeRosa, 64, of 221 N. Cascade St. schemed to defraud First Commonwealth Bank of $250,000 in connection with Affordable Housing of Lawrence County’s purchase of seven properties in December 2005.
Neshannock Township resident Anthony J. Staph Jr., 43, faces one count of bank fraud in connection with the investigation. He appeared in federal court on July 21 and pleaded not guilty.
Ratkovich entered into a plea agreement with the U.S. Attorney’s Office on Dec. 22, 2008. The arrangement was outlined during yesterday’s hearing.
Assistant U.S. Attorney Brendan T. Conway said he “anticipated (substantial) assistance from Ratkovich.”
Under the deal, Ratkovich will aid law enforcement in its investigation of DeRosa, Staph and unnamed parties. The government said it is looking into possible violations from January 2000 to present.
Ratkovich must provide investigators with documents and evidence in his possession. He also is required to testify when requested.
Conway said the government will seek a sentence reduction based on Ratkovich’s cooperation.
“I don’t believe it would be appropriate to comment at this time,” said John T. Haller Jr., Ratkovich’s attorney.
After the hearing, Ratkovich was taken to the U.S. Marshal’s Office for processing. He was then released on $10,000 unsecured bond. Ratkovich is not permitted to leave western Pennsylvania without the court’s permission.
A sentencing date has been scheduled for 10 a.m. Oct. 28. Conway said the government will likely seek a continuance.
DeRosa will be arraigned at 9:30 a.m. tomorrow before U.S. Magistrate Amy Reynolds Hay. A federal grand jury indicted the retired New Castle school administrator on one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy.
Pretrial motions involving Staph have been moved to Oct. 30.
Affordable Housing hired Ratkovich as a consultant to recommend and oversee property purchases. The board paid Ratkovich $45 an hour. During his tenure with Affordable Housing, he received approximately $60,000.
The county’s housing authority formed the spin-off, nonprofit corporation in 2003.
The government charged that Ratkovich and DeRosa knew the Norwood Avenue resident’s purchase recommendation to Affordable Housing was not the product of proper and accurate analysis. The rental properties were reportedly ones that DeRosa, his family members and his friends wanted to sell.
Ratkovich also submitted false financial projections regarding the properties to First Commonwealth, the U.S. Attorney’s Office said.
Government investigators said Affordable Housing overpaid Ratkovich for his consulting services. The U.S. Attorney’s Office charged that Ratkovich, DeRosa and a person identified in court records as “G.F.” agreed to share the funds.
Affordable Housing declared itself insolvent in March 2006.
In May, Ratkovich resigned as the housing authority’s maintenance superintendent, a position he held since April 2005. Before that, he was the authority’s modernization coordinator.
The U.S. Attorney’s Office said Ratkovich faces a maximum of 50 years in prison, a fine of $1.5 million, or both. He also may be required to make restitution.
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
PITTSBURGH – A former New Castle councilman and housing consultant admitted that he conspired to defraud a Pennsylvania-based bank.
“Guilty, your honor,” Robert Ratkovich said yesterday in federal court.
Ratkovich, 40, of 512 Norwood Ave. waived his indictment, arraignment and plea hearing before U.S. District Judge Gustave Diamond. He pleaded guilty to one count of bank and mail fraud conspiracy and one count of money laundering conspiracy.
“The long and short of it is, you provided (inflated) information,” Diamond said during the hourlong hearing.
The U.S. Attorney’s Office alleged Ratkovich and Nicholas DeRosa, 64, of 221 N. Cascade St. schemed to defraud First Commonwealth Bank of $250,000 in connection with Affordable Housing of Lawrence County’s purchase of seven properties in December 2005.
Neshannock Township resident Anthony J. Staph Jr., 43, faces one count of bank fraud in connection with the investigation. He appeared in federal court on July 21 and pleaded not guilty.
Ratkovich entered into a plea agreement with the U.S. Attorney’s Office on Dec. 22, 2008. The arrangement was outlined during yesterday’s hearing.
Assistant U.S. Attorney Brendan T. Conway said he “anticipated (substantial) assistance from Ratkovich.”
Under the deal, Ratkovich will aid law enforcement in its investigation of DeRosa, Staph and unnamed parties. The government said it is looking into possible violations from January 2000 to present.
Ratkovich must provide investigators with documents and evidence in his possession. He also is required to testify when requested.
Conway said the government will seek a sentence reduction based on Ratkovich’s cooperation.
“I don’t believe it would be appropriate to comment at this time,” said John T. Haller Jr., Ratkovich’s attorney.
After the hearing, Ratkovich was taken to the U.S. Marshal’s Office for processing. He was then released on $10,000 unsecured bond. Ratkovich is not permitted to leave western Pennsylvania without the court’s permission.
A sentencing date has been scheduled for 10 a.m. Oct. 28. Conway said the government will likely seek a continuance.
DeRosa will be arraigned at 9:30 a.m. tomorrow before U.S. Magistrate Amy Reynolds Hay. A federal grand jury indicted the retired New Castle school administrator on one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy.
Pretrial motions involving Staph have been moved to Oct. 30.
Affordable Housing hired Ratkovich as a consultant to recommend and oversee property purchases. The board paid Ratkovich $45 an hour. During his tenure with Affordable Housing, he received approximately $60,000.
The county’s housing authority formed the spin-off, nonprofit corporation in 2003.
The government charged that Ratkovich and DeRosa knew the Norwood Avenue resident’s purchase recommendation to Affordable Housing was not the product of proper and accurate analysis. The rental properties were reportedly ones that DeRosa, his family members and his friends wanted to sell.
Ratkovich also submitted false financial projections regarding the properties to First Commonwealth, the U.S. Attorney’s Office said.
Government investigators said Affordable Housing overpaid Ratkovich for his consulting services. The U.S. Attorney’s Office charged that Ratkovich, DeRosa and a person identified in court records as “G.F.” agreed to share the funds.
Affordable Housing declared itself insolvent in March 2006.
In May, Ratkovich resigned as the housing authority’s maintenance superintendent, a position he held since April 2005. Before that, he was the authority’s modernization coordinator.
The U.S. Attorney’s Office said Ratkovich faces a maximum of 50 years in prison, a fine of $1.5 million, or both. He also may be required to make restitution.
Friday, July 24, 2009
Neshannock man comes clean in skunk stumper
July 25, 2009
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Rocco Fazio let the ... er ... skunk out of the bag.
Not that much coaxing was needed.
“You’re not talking about the animal, are you?” the Neshannock man asked. “Gosh, I don’t believe it.”
OK, a little convincing.
“That’s me. I’m the guy moving the skunk all over Pulaski Road.”
For more than a month, neighborhood residents and passing motorists have been perplexed and amused. Where will a stuffed, toy skunk — named Buttercup —show up next?
As of yesterday, near First Assembly of God Church.
One day, a guard rail. Next, a telephone pole. A roof. In yards.
Today? Only Fazio and his family know.
A bit of tomfoolery between friends resulted in Buttercup’s Pulaski Road journey.
It started when Fazio’s dog, Daisy, had a few run-ins with a skunk. Daisy lost the encounters, getting sprayed each time. Fazio, who owns Rocco’s Wildlife Removal, set a trap to snare the troublemaker.
Two days and nothing.
Fazio was cutting grass on his two-acre property when Buttercup emerged. He made one pass in the yard and then another. When he turned his tractor for the third cut, a stuffed, toy skunk appeared.
Hiding behind a tree and laughing were neighbor Kenny Kauffman and his son. Thus began the travels of Buttercup the Skunk.
“I put it on the hood of my trunk that day,” Fazio said.
He then decided, “I’m going to move this thing all over Pulaski Road.
“People are wondering what’s going on. I just laugh.”
Neshannock resident Bill DeCarbo regularly conducts a Buttercup search.
“I’m so curious to see where it will go next,” he said. “It’s grown into a neighborhood thing.”
An attempt to reach Kauffman for comment was unsuccessful.
Fazio and his family transport Buttercup daily — the ride takes place at night or in the early morning. He’s been caught once.
“The lady was howling. She said ‘You’re the guy. That’s the best thing I’ve ever seen.’”
Although his identity has been revealed, Fazio plans to continue his game of “Where’s Buttercup?”
“There’s a lot of places I haven’t hit yet.”
As for the real skunk that taunts Daisy, it hasn’t been nabbed.
“We got so overwhelmed with this thing.”
Buttercup declined to comment.
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Rocco Fazio let the ... er ... skunk out of the bag.
Not that much coaxing was needed.
“You’re not talking about the animal, are you?” the Neshannock man asked. “Gosh, I don’t believe it.”
OK, a little convincing.
“That’s me. I’m the guy moving the skunk all over Pulaski Road.”
For more than a month, neighborhood residents and passing motorists have been perplexed and amused. Where will a stuffed, toy skunk — named Buttercup —show up next?
As of yesterday, near First Assembly of God Church.
One day, a guard rail. Next, a telephone pole. A roof. In yards.
Today? Only Fazio and his family know.
A bit of tomfoolery between friends resulted in Buttercup’s Pulaski Road journey.
It started when Fazio’s dog, Daisy, had a few run-ins with a skunk. Daisy lost the encounters, getting sprayed each time. Fazio, who owns Rocco’s Wildlife Removal, set a trap to snare the troublemaker.
Two days and nothing.
Fazio was cutting grass on his two-acre property when Buttercup emerged. He made one pass in the yard and then another. When he turned his tractor for the third cut, a stuffed, toy skunk appeared.
Hiding behind a tree and laughing were neighbor Kenny Kauffman and his son. Thus began the travels of Buttercup the Skunk.
“I put it on the hood of my trunk that day,” Fazio said.
He then decided, “I’m going to move this thing all over Pulaski Road.
“People are wondering what’s going on. I just laugh.”
Neshannock resident Bill DeCarbo regularly conducts a Buttercup search.
“I’m so curious to see where it will go next,” he said. “It’s grown into a neighborhood thing.”
An attempt to reach Kauffman for comment was unsuccessful.
Fazio and his family transport Buttercup daily — the ride takes place at night or in the early morning. He’s been caught once.
“The lady was howling. She said ‘You’re the guy. That’s the best thing I’ve ever seen.’”
Although his identity has been revealed, Fazio plans to continue his game of “Where’s Buttercup?”
“There’s a lot of places I haven’t hit yet.”
As for the real skunk that taunts Daisy, it hasn’t been nabbed.
“We got so overwhelmed with this thing.”
Buttercup declined to comment.
Badge 36
July 25, 2009
POLICE, FAMILY RECALL
THE MAN BEHIND THE SHIELD
ON THE ONE-YEAR ANNIVERSARY OF HIS DEATH.
BADGE 36
PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Anthony Lagnese walks into work and wants to see his friend.
Robert J. Lepore is not there.
A year ago today, the New Castle police department’s detective sergeant died at Presbyterian Hospital in Pittsburgh. Two weeks earlier, the veteran officer had suffered severe injures when his SUV struck a utility police. The 44-year-old Mahoningtown resident was off-duty at the time.
“It’s definitely something I still think about everyday,” said Lagnese, a corporal in the department’s narcotics unit. “I go to the office and still expect to see him there.
“I still expect to see him come through the door.”
Badge No. 36 – retired. A photo of Lepore – the department’s solemn tribute.
“The department’s different now,” Cpl. Bob Salem said. “You walk into the detective’s bureau. Every day, you look at his chair. You look at his desk.
“He had a shrine of pictures of his kids on the wall. It’s just empty now.”
His family and police brethren continue to grieve and remember on the one-year anniversary of his death. Lepore would have preferred otherwise.
“Bobby would want us to go forward and not mourn him that much,” his mother, Helen, said.
Lepore was a police officer.
“I told him, ‘Bobby, that’s your profession, but you’re a man. You’re a father,’” she recalled. “He said, “Ma, I identify myself as a police officer.’
“And then I found out why. So many people came up to me and said, ‘He told me if there was any problem, you come up to me.’ He didn’t just say it. He meant it.”
News of the accident sparked prayer vigils and support throughout Mahoningtown for Lepore and his family.
“He was a leader in our community, and he was a leader in his family,” niece Heather Micco said. “Bobby was like the nucleus that held us all together.
“You never thought something would happen to him because of his passion, his strength. You keep wanting to wake up from the nightmare.”
Lepore’s two sons – Thomas, 21, and Mike, 24 – are following their father’s career path in law enforcement. The decision was made before their father’s death.
“I always wanted to grow up and do it,” said Thomas Lepore, a security officer with Jameson Health System.
He was the last family member to see his father before emergency personnel flew Lepore to Pittsburgh for treatment.
“That day my mum called me,” Thomas recalled. “(She said), ‘There’s a big wreck on Atlantic.’
“I didn’t know it was him.”
His stepfather found Thomas and relayed what had happened.
“I caught (my dad) a brief second,” he said. “I gave him a kiss and told him I loved him.
“He just screamed my name.”
Thomas remains undeterred in his desire to be a police officer. If given the opportunity, he would join the New Castle police force “in a second.”
Mike works at the Lawrence County jail.
“He always wanted (better) for me and Thomas,” he said. “He always wanted us to be better than him. He was there to give us the pros and cons of everything.”
The pair took the department’s entrance exam in December.
“He always told me to do it right,” Mike said. “If I don’t get offered a job in New Castle, I’ll go somewhere else.”
The family mourns for another reason. After Lepore’s death, his two other children, Rian and Rakail, went with their biological mother to Washington, D.C. They returned to the area for four days in December.
“His family came first and that’s what kept him driven,” Micco said. “Four kids and he still found time for his family.”
Micco delivered her uncle’s eulogy during his funeral Mass at St. Vincent de Paul Church. Before she approached the altar, Thomas made a request.
“Make sure you tell them he was fearless.”
POLICE, FAMILY RECALL
THE MAN BEHIND THE SHIELD
ON THE ONE-YEAR ANNIVERSARY OF HIS DEATH.
BADGE 36
PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Anthony Lagnese walks into work and wants to see his friend.
Robert J. Lepore is not there.
A year ago today, the New Castle police department’s detective sergeant died at Presbyterian Hospital in Pittsburgh. Two weeks earlier, the veteran officer had suffered severe injures when his SUV struck a utility police. The 44-year-old Mahoningtown resident was off-duty at the time.
“It’s definitely something I still think about everyday,” said Lagnese, a corporal in the department’s narcotics unit. “I go to the office and still expect to see him there.
“I still expect to see him come through the door.”
Badge No. 36 – retired. A photo of Lepore – the department’s solemn tribute.
“The department’s different now,” Cpl. Bob Salem said. “You walk into the detective’s bureau. Every day, you look at his chair. You look at his desk.
“He had a shrine of pictures of his kids on the wall. It’s just empty now.”
His family and police brethren continue to grieve and remember on the one-year anniversary of his death. Lepore would have preferred otherwise.
“Bobby would want us to go forward and not mourn him that much,” his mother, Helen, said.
Lepore was a police officer.
“I told him, ‘Bobby, that’s your profession, but you’re a man. You’re a father,’” she recalled. “He said, “Ma, I identify myself as a police officer.’
“And then I found out why. So many people came up to me and said, ‘He told me if there was any problem, you come up to me.’ He didn’t just say it. He meant it.”
News of the accident sparked prayer vigils and support throughout Mahoningtown for Lepore and his family.
“He was a leader in our community, and he was a leader in his family,” niece Heather Micco said. “Bobby was like the nucleus that held us all together.
“You never thought something would happen to him because of his passion, his strength. You keep wanting to wake up from the nightmare.”
Lepore’s two sons – Thomas, 21, and Mike, 24 – are following their father’s career path in law enforcement. The decision was made before their father’s death.
“I always wanted to grow up and do it,” said Thomas Lepore, a security officer with Jameson Health System.
He was the last family member to see his father before emergency personnel flew Lepore to Pittsburgh for treatment.
“That day my mum called me,” Thomas recalled. “(She said), ‘There’s a big wreck on Atlantic.’
“I didn’t know it was him.”
His stepfather found Thomas and relayed what had happened.
“I caught (my dad) a brief second,” he said. “I gave him a kiss and told him I loved him.
“He just screamed my name.”
Thomas remains undeterred in his desire to be a police officer. If given the opportunity, he would join the New Castle police force “in a second.”
Mike works at the Lawrence County jail.
“He always wanted (better) for me and Thomas,” he said. “He always wanted us to be better than him. He was there to give us the pros and cons of everything.”
The pair took the department’s entrance exam in December.
“He always told me to do it right,” Mike said. “If I don’t get offered a job in New Castle, I’ll go somewhere else.”
The family mourns for another reason. After Lepore’s death, his two other children, Rian and Rakail, went with their biological mother to Washington, D.C. They returned to the area for four days in December.
“His family came first and that’s what kept him driven,” Micco said. “Four kids and he still found time for his family.”
Micco delivered her uncle’s eulogy during his funeral Mass at St. Vincent de Paul Church. Before she approached the altar, Thomas made a request.
“Make sure you tell them he was fearless.”
Tuesday, July 21, 2009
Ratkovich expected to plead guilty
July 17, 2009
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Three New Castle residents charged in a mortgage fraud scheme will appear in federal court later this month.
The alleged conspiracy centers on Affordable Housing of Lawrence County, a defunct nonprofit housing agency created in 2003 by the Lawrence County Housing Authority.
The U.S. Attorney’s Office in Pittsburgh is claiming that Nicholas DeRosa, 64, of 221 N. Cascade St. and Robert Ratkovich, 40, of 512 Norwood Ave. plotted to defraud First Commonwealth in connection with the purchase of seven properties by Affordable Housing.
Ratkovich will appear before U.S. District Judge Gustave Diamond at 10 a.m. July 28. The former housing authority maintenance supervisor is charged with one count of bank and mail fraud conspiracy and one count of money laundering conspiracy.
According to court records, Ratkovich will waive his indictment, arraignment and plea hearing. The action signals a defendant’s intent to enter a guilty plea.
DeRosa will be arraigned at 9:30 a.m. July 30 before U.S. Magistrate Amy Reynolds Hay. A federal grand jury indicted the retired New Castle school administrator on one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy.
The government will ask DeRosa to post a $10,000 bond.
In conjunction with DeRosa’s indictment, the U.S. Attorney’s Office refiled a charge against Anthony J. Staph Jr., 43, of 132 Firestone Drive.
A real estate appraiser, Staph entered a not guilty plea to one count of bank fraud in February.
When Staph was named in the same indictment as DeRosa, the government dropped the earlier charge and then reintroduced it. Staph’s arraignment will take place at 9:30 a.m. July 21 before Hay.
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Three New Castle residents charged in a mortgage fraud scheme will appear in federal court later this month.
The alleged conspiracy centers on Affordable Housing of Lawrence County, a defunct nonprofit housing agency created in 2003 by the Lawrence County Housing Authority.
The U.S. Attorney’s Office in Pittsburgh is claiming that Nicholas DeRosa, 64, of 221 N. Cascade St. and Robert Ratkovich, 40, of 512 Norwood Ave. plotted to defraud First Commonwealth in connection with the purchase of seven properties by Affordable Housing.
Ratkovich will appear before U.S. District Judge Gustave Diamond at 10 a.m. July 28. The former housing authority maintenance supervisor is charged with one count of bank and mail fraud conspiracy and one count of money laundering conspiracy.
According to court records, Ratkovich will waive his indictment, arraignment and plea hearing. The action signals a defendant’s intent to enter a guilty plea.
DeRosa will be arraigned at 9:30 a.m. July 30 before U.S. Magistrate Amy Reynolds Hay. A federal grand jury indicted the retired New Castle school administrator on one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy.
The government will ask DeRosa to post a $10,000 bond.
In conjunction with DeRosa’s indictment, the U.S. Attorney’s Office refiled a charge against Anthony J. Staph Jr., 43, of 132 Firestone Drive.
A real estate appraiser, Staph entered a not guilty plea to one count of bank fraud in February.
When Staph was named in the same indictment as DeRosa, the government dropped the earlier charge and then reintroduced it. Staph’s arraignment will take place at 9:30 a.m. July 21 before Hay.
Block-and-tackle system aided in McConnell’s Mill rescue
July 21, 2009
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A simple mechanism played a pivotal role in the rescue of a New Brighton man Sunday afternoon.
Slippery Rock Township firefighters employed a block-and-tackle system to retrieve an injured Lucas Oehling.
Oehling, 20, fell 35 to 40 feet at the McConnell’s Mill State Park’s Kildoo Waterfalls, located below Kennedy Road bridge. He was listed last night in fair condition at Presbyterian Hospital, Pittsburgh.
Chief Ranger Rick Carson said Oehling suffered a 5-inch head wound and complained of back pain. The New Brighton man was conscious during the rescue and able to move his hands and feet.
The incident occurred, Carson said, when Oehling and his girlfriend, who was not identified, wandered off one of the park’s marked trails around 2 p.m. to 2:30 p.m.
Wearing tennis shoes, Oehling edged his way to the waterfalls. He slid down the hill, over the falls and onto rocks, Carson said.
“He wasn’t doing anything out of the ordinary,” added Chief William Lunn, who heads the township’s volunteer fire department. “He lost his footing.
“He tried to catch himself.”
Carson said a volunteer search-and-rescue team, U.S. SARR Corps, was practicing nearby on Rim Road when members heard screams for help. The Beaver Falls-based group reached Oehling and alerted authorities.
Lunn’s unit then took the lead in the rescue. With McConnell’s Mill and Hell’s Hollow in its coverage area, the department specializes in rope and water rescues.
Getting to Oehling meant taking a different route than the one he followed.
“We had to do a lot of rigging to get to the location,” Lunn said. “We used a block-and-tackle system to bring him on over.”
The rescuers decided to follow a steep incline, covering 75 feet, to reach Oehling.
“You have to protect your people,” Lunn said in determining which path to take. “We have every bit of the same risk of getting injured.”
Firefighters from Portersville-Muddy Creek and Scott Township assisted, along with the volunteer rescue team.
“These different fire departments came together,” Lunn said. “They all meshed.”
As a precaution, authorities called in STAT MedEvac to fly Oehling to Presbyterian Hospital.
Portersville’s ambulance company and state police also assisted.
Carson said the incident reinforces two safety tips: Wear a good pair of hiking shoes and stay on marked trails.
“If people stay on the trail, they usually don’t get injured.”
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A simple mechanism played a pivotal role in the rescue of a New Brighton man Sunday afternoon.
Slippery Rock Township firefighters employed a block-and-tackle system to retrieve an injured Lucas Oehling.
Oehling, 20, fell 35 to 40 feet at the McConnell’s Mill State Park’s Kildoo Waterfalls, located below Kennedy Road bridge. He was listed last night in fair condition at Presbyterian Hospital, Pittsburgh.
Chief Ranger Rick Carson said Oehling suffered a 5-inch head wound and complained of back pain. The New Brighton man was conscious during the rescue and able to move his hands and feet.
The incident occurred, Carson said, when Oehling and his girlfriend, who was not identified, wandered off one of the park’s marked trails around 2 p.m. to 2:30 p.m.
Wearing tennis shoes, Oehling edged his way to the waterfalls. He slid down the hill, over the falls and onto rocks, Carson said.
“He wasn’t doing anything out of the ordinary,” added Chief William Lunn, who heads the township’s volunteer fire department. “He lost his footing.
“He tried to catch himself.”
Carson said a volunteer search-and-rescue team, U.S. SARR Corps, was practicing nearby on Rim Road when members heard screams for help. The Beaver Falls-based group reached Oehling and alerted authorities.
Lunn’s unit then took the lead in the rescue. With McConnell’s Mill and Hell’s Hollow in its coverage area, the department specializes in rope and water rescues.
Getting to Oehling meant taking a different route than the one he followed.
“We had to do a lot of rigging to get to the location,” Lunn said. “We used a block-and-tackle system to bring him on over.”
The rescuers decided to follow a steep incline, covering 75 feet, to reach Oehling.
“You have to protect your people,” Lunn said in determining which path to take. “We have every bit of the same risk of getting injured.”
Firefighters from Portersville-Muddy Creek and Scott Township assisted, along with the volunteer rescue team.
“These different fire departments came together,” Lunn said. “They all meshed.”
As a precaution, authorities called in STAT MedEvac to fly Oehling to Presbyterian Hospital.
Portersville’s ambulance company and state police also assisted.
Carson said the incident reinforces two safety tips: Wear a good pair of hiking shoes and stay on marked trails.
“If people stay on the trail, they usually don’t get injured.”
Thursday, July 16, 2009
District fails to profit from stores' spirit sales
Published October 14, 2008
By Patrick E. Litowitz
New Castle News
Each Red Hurricane win infuses spirit into New Castle’s football faithful.
While the team profits from every victory, the district receives next to nothing in school merchandising fees.
Unlike college and universities in addition to professional sports teams, school districts traditionally do not apply for trademark protection. The trademark permits its owner to negotiate a fee for its logo’s use.
For example, Pittsburgh Steelers merchandise costs more than Mahoning Valley Scrappers items. That results from the fan base and the team’s popularity, which allows the Steelers to charge a higher trademark fee.
A business selling Red Hurricane T-shirts, hats, sweatshirts or related articles does not require nor asks the district for its approval.
National chains, such as Wal-Mart, Walgreens and Rite Aid, market products promoting school spirit. The Wal-Mart in Union Square Plaza caters to New Castle and Union Township. At the Walgreens in Poland, Ohio, shoppers find sports gear for the Poland Bulldogs and Struthers Wildcats. The Rite Aid on South Jefferson Street features Red Hurricane items.
“We do it to try to help out the community and get them outfitted for schools,” said Lisa Dolecki, Wal-Mart’s fashion merchandiser for northwestern Pennsylvania.
Joseph Ambrosini, the city schools’ business administrator, confirmed that the district does not hold trademark rights. With a schoolwide dress policy in place, he said the administration sought apparel that complied with the school policy. To get more vendors involved, New Castle logos were offered without trademark considerations.
“We asked them to carry our dress apparel so that parents had an option,” Ambrosini said. “We weren’t saying that you just go to one store.
“That wasn’t our goal: to make money.”
Ten vendors, including Wal-Mart, were originally asked to take part.
While Wal-Mart doesn’t compensate the district, the company does offer grants for educational and nonprofit ventures. New Castle does not pursue those funds, but affiliated groups do.
“They actually want to help booster clubs and school organizations,” Ambrosini said. “They do want to make sure it’s something you’re doing with the school.”
One company, Ohiopyle Prints, guarantees a percentage of its wholesale price to school districts. The Fayette County-based screen printing and embroidery business donates 7 percent of its sales.
Ohiopyle Prints’ product line involves souvenirs, such as those found at state parks, museum and tourists attractions. Local businesses contracted the firm to create New Castle and Union keepsakes, such as hats, T-shirts and Teddy bears.
Steve Shidel, Ohiopyle’s director of sales and customer service, credited owner Fred Wright with the concept.
Over the course of a year, New Castle will receive $160.
“We wish it was bigger,” Shidel said. “The more that’s sold, the more that goes to the school.”
There’s another location to pick up Red Hurricane gear: Canes Corner, located in the senior high school.
Juniors and seniors who attend the school’s marketing management course operate the facility.
“In the school store, there is mark-up cost,” Ambrosini said. “Those funds are used for school activities.”
By Patrick E. Litowitz
New Castle News
Each Red Hurricane win infuses spirit into New Castle’s football faithful.
While the team profits from every victory, the district receives next to nothing in school merchandising fees.
Unlike college and universities in addition to professional sports teams, school districts traditionally do not apply for trademark protection. The trademark permits its owner to negotiate a fee for its logo’s use.
For example, Pittsburgh Steelers merchandise costs more than Mahoning Valley Scrappers items. That results from the fan base and the team’s popularity, which allows the Steelers to charge a higher trademark fee.
A business selling Red Hurricane T-shirts, hats, sweatshirts or related articles does not require nor asks the district for its approval.
National chains, such as Wal-Mart, Walgreens and Rite Aid, market products promoting school spirit. The Wal-Mart in Union Square Plaza caters to New Castle and Union Township. At the Walgreens in Poland, Ohio, shoppers find sports gear for the Poland Bulldogs and Struthers Wildcats. The Rite Aid on South Jefferson Street features Red Hurricane items.
“We do it to try to help out the community and get them outfitted for schools,” said Lisa Dolecki, Wal-Mart’s fashion merchandiser for northwestern Pennsylvania.
Joseph Ambrosini, the city schools’ business administrator, confirmed that the district does not hold trademark rights. With a schoolwide dress policy in place, he said the administration sought apparel that complied with the school policy. To get more vendors involved, New Castle logos were offered without trademark considerations.
“We asked them to carry our dress apparel so that parents had an option,” Ambrosini said. “We weren’t saying that you just go to one store.
“That wasn’t our goal: to make money.”
Ten vendors, including Wal-Mart, were originally asked to take part.
While Wal-Mart doesn’t compensate the district, the company does offer grants for educational and nonprofit ventures. New Castle does not pursue those funds, but affiliated groups do.
“They actually want to help booster clubs and school organizations,” Ambrosini said. “They do want to make sure it’s something you’re doing with the school.”
One company, Ohiopyle Prints, guarantees a percentage of its wholesale price to school districts. The Fayette County-based screen printing and embroidery business donates 7 percent of its sales.
Ohiopyle Prints’ product line involves souvenirs, such as those found at state parks, museum and tourists attractions. Local businesses contracted the firm to create New Castle and Union keepsakes, such as hats, T-shirts and Teddy bears.
Steve Shidel, Ohiopyle’s director of sales and customer service, credited owner Fred Wright with the concept.
Over the course of a year, New Castle will receive $160.
“We wish it was bigger,” Shidel said. “The more that’s sold, the more that goes to the school.”
There’s another location to pick up Red Hurricane gear: Canes Corner, located in the senior high school.
Juniors and seniors who attend the school’s marketing management course operate the facility.
“In the school store, there is mark-up cost,” Ambrosini said. “Those funds are used for school activities.”
District seeks bond relief to ‘stop the bleeding’
Published December 10, 2008
By Patrick E. Litowitz
New Castle News
The New Castle Area School District is pursuing relief from pressures associated with the international bond market.
Its best hope may be a Pittsburgh-based bank.
Through Dec. 1, the district lost approximately $144,000 on its interest rate swap with JPMorgan Chase & Co. The transaction involves New Castle’s 2008 bond series, valued at $9.7 million.
Overall, the district maintains a $327,000 surplus. Without action, business manager Joseph Ambrosini expects the losses to mount.
“We’re in a situation with our swaptions that is really starting to affect our district,” Ambrosini said last week. “Things took a turn for the worse in the last couple (of) weeks.
“What we have is not working at all.”
The worldwide financial crisis affected New Castle on two fronts. The amount it owed JPMorgan, which ranged from 1.3 percent to 2.6 percent based on the Securities Industry and Financial Markets Association index, jumped as high as 7.9 percent during September and October.
On Oct. 23, those rates returned to their normal averages.
New Castle’s second problem, which continues, involves the reselling of its bonds.
The Royal Bank of Canada acts as the district’s remarketing agent. When the bonds aren’t purchased, the district is charged a 12-percent fee. Eight of the past 12 weeks, New Castle has been assessed the maximum charge.
“Let’s stop the bleeding,” said Michael Zbasic, a representative of PNC Capital Markets.
Greg McKenna and Zbasic, a Laurel School District board member, met with the city school board after its reorganization session. PNC Capital Markets is a subsidiary of PNC Financial Services Group.
The uncertainty of the bond insurers ability to pay on potential losses compounded the problem. European-based Dexia insures New Castle’s bonds.
“All the municipal bond insurers are in trouble,” McKenna said. “The vast majority of them insured pools of sub-prime mortgages.
“Everybody is paying more money for higher borrowing costs because nobody wants to own bonds that are backed up by these insurers’ policies. That’s really the crux of the problem.”
New Castle and PNC Capital Markets have been in negotiations since mid-November.
An analysis of remarketing costs shows the Pittsburgh firm undercutting the Royal Bank of Canada by as much as 9 percentage points.
“The concerns are multiplying with your situation,” Zbasic said. “They don’t like the banker. They don’t like the insurer.”
Additionally, he said, the Royal Bank of Canada is not putting in the effort to resell New Castle’s bonds.
“PNC will work aggressively to find investors. They have a hard time selling Dexia’s name, where we would be selling PNC’s name.”
Attorney Patrick Healy, the district’s bond counsel from Cohen & Grigsby, urged the board to have an agreement in place by January.
“I think it’s important for your taxpayers and everyone to realize you are not in the hole,” Zbasic said. “You are still ahead of the game.
“If you keep paying 12 percent a month for another month or two, you won’t be.”
By Patrick E. Litowitz
New Castle News
The New Castle Area School District is pursuing relief from pressures associated with the international bond market.
Its best hope may be a Pittsburgh-based bank.
Through Dec. 1, the district lost approximately $144,000 on its interest rate swap with JPMorgan Chase & Co. The transaction involves New Castle’s 2008 bond series, valued at $9.7 million.
Overall, the district maintains a $327,000 surplus. Without action, business manager Joseph Ambrosini expects the losses to mount.
“We’re in a situation with our swaptions that is really starting to affect our district,” Ambrosini said last week. “Things took a turn for the worse in the last couple (of) weeks.
“What we have is not working at all.”
The worldwide financial crisis affected New Castle on two fronts. The amount it owed JPMorgan, which ranged from 1.3 percent to 2.6 percent based on the Securities Industry and Financial Markets Association index, jumped as high as 7.9 percent during September and October.
On Oct. 23, those rates returned to their normal averages.
New Castle’s second problem, which continues, involves the reselling of its bonds.
The Royal Bank of Canada acts as the district’s remarketing agent. When the bonds aren’t purchased, the district is charged a 12-percent fee. Eight of the past 12 weeks, New Castle has been assessed the maximum charge.
“Let’s stop the bleeding,” said Michael Zbasic, a representative of PNC Capital Markets.
Greg McKenna and Zbasic, a Laurel School District board member, met with the city school board after its reorganization session. PNC Capital Markets is a subsidiary of PNC Financial Services Group.
The uncertainty of the bond insurers ability to pay on potential losses compounded the problem. European-based Dexia insures New Castle’s bonds.
“All the municipal bond insurers are in trouble,” McKenna said. “The vast majority of them insured pools of sub-prime mortgages.
“Everybody is paying more money for higher borrowing costs because nobody wants to own bonds that are backed up by these insurers’ policies. That’s really the crux of the problem.”
New Castle and PNC Capital Markets have been in negotiations since mid-November.
An analysis of remarketing costs shows the Pittsburgh firm undercutting the Royal Bank of Canada by as much as 9 percentage points.
“The concerns are multiplying with your situation,” Zbasic said. “They don’t like the banker. They don’t like the insurer.”
Additionally, he said, the Royal Bank of Canada is not putting in the effort to resell New Castle’s bonds.
“PNC will work aggressively to find investors. They have a hard time selling Dexia’s name, where we would be selling PNC’s name.”
Attorney Patrick Healy, the district’s bond counsel from Cohen & Grigsby, urged the board to have an agreement in place by January.
“I think it’s important for your taxpayers and everyone to realize you are not in the hole,” Zbasic said. “You are still ahead of the game.
“If you keep paying 12 percent a month for another month or two, you won’t be.”
District audit one of its best
Published May 27, 2009
By Patrick E. Litowitz
New Castle News
The New Castle Area School District is making progress.
That’s the assessment of Superintendent George Gabriel following the most recent examination of the district by the state auditor general.
Past district audits focused on deficiencies, irregularities and operational issues within the system. The auditor general’s office targeted areas such as the district’s travel policy, late financial filings and its transportation contract in a report covering the 2002-03 and 2003-04 school years.
Those problems have been addressed to the state’s satisfaction.
Although assessed with three findings and one observation, the latest review of district operations is one of its best efforts. The state released its audit, which spanned October 2005 to July 2008, to the public last week.
"In the past, we’ve seen findings much more severe in nature," Superintendent George Gabriel said. "That to me shows there has been progress made in this district.
"Audits are learning experiences for districts. When a finding is called to our attention, we respond immediately and corrective action is taken immediately."
Overall, the district received approximately $74,000 more than it was entitled. Those monies covered two findings. The third matter covered the district’s transportation provider, First Student, which was formerly known as Laidlaw.
New Castle has repaid approximately $55,000 to the state for incorrectly reporting the wages of employees paid with federal funds. The state reimburses school districts a portion of Social Security and Medicare taxes when its employees receive their pay through state grants. However, that provision does not apply to employees who earn salaries through federal programs.
In New Castle’s case, the issue involved the Individuals with Disabilities Education Act. Although it’s a federal program, the dollars are disbursed through the state’s intermediate units. Business manager Joseph Ambrosini said most special education grants are state funded.
Dollars connected with the Individuals with Disabilities Education Act were treated in the same manner.
"We run a report through payroll, and it separates federal wage employees and state wage employees," Ambrosini said. "Those IDEA people were under my state listing and not my federal listing.
"The auditors realized it was unintentional."
The problem was not unique to New Castle. State auditors cited the United School District in Indiana County for the same issue.
The second and third findings relate to transportation. The state overpaid New Castle approximately $19,000 for providing an incorrect number of students using buses. The issue involved a clerical error, which the district said it fixed when brought to its attention.
The district was also cited for not having up-to-date information on its bus drivers. At the time of its review, auditors found no records for three drivers, 13 drivers did not have valid licenses and 12 did not have current physical forms. Finally, six drivers did not receive board approval.
Each August, the board approves bus drivers for the upcoming school year.
"The breakdown came when we weren’t receiving those names (after the board met)," Gabriel said.
To correct the finding, First Student provides the district with driver information monthly.
In its lone observation, the state said a risk exists that the district’s software vendors could enter the system without permission. New Castle said it has taken steps to prevent unauthorized access.
"Our audit found that the (district) complied, in all significant respects, with applicable state laws, regulations, contracts, grant requirements and administrative procedures, except as detailed in three findings noted in this report," auditors wrote.
By Patrick E. Litowitz
New Castle News
The New Castle Area School District is making progress.
That’s the assessment of Superintendent George Gabriel following the most recent examination of the district by the state auditor general.
Past district audits focused on deficiencies, irregularities and operational issues within the system. The auditor general’s office targeted areas such as the district’s travel policy, late financial filings and its transportation contract in a report covering the 2002-03 and 2003-04 school years.
Those problems have been addressed to the state’s satisfaction.
Although assessed with three findings and one observation, the latest review of district operations is one of its best efforts. The state released its audit, which spanned October 2005 to July 2008, to the public last week.
"In the past, we’ve seen findings much more severe in nature," Superintendent George Gabriel said. "That to me shows there has been progress made in this district.
"Audits are learning experiences for districts. When a finding is called to our attention, we respond immediately and corrective action is taken immediately."
Overall, the district received approximately $74,000 more than it was entitled. Those monies covered two findings. The third matter covered the district’s transportation provider, First Student, which was formerly known as Laidlaw.
New Castle has repaid approximately $55,000 to the state for incorrectly reporting the wages of employees paid with federal funds. The state reimburses school districts a portion of Social Security and Medicare taxes when its employees receive their pay through state grants. However, that provision does not apply to employees who earn salaries through federal programs.
In New Castle’s case, the issue involved the Individuals with Disabilities Education Act. Although it’s a federal program, the dollars are disbursed through the state’s intermediate units. Business manager Joseph Ambrosini said most special education grants are state funded.
Dollars connected with the Individuals with Disabilities Education Act were treated in the same manner.
"We run a report through payroll, and it separates federal wage employees and state wage employees," Ambrosini said. "Those IDEA people were under my state listing and not my federal listing.
"The auditors realized it was unintentional."
The problem was not unique to New Castle. State auditors cited the United School District in Indiana County for the same issue.
The second and third findings relate to transportation. The state overpaid New Castle approximately $19,000 for providing an incorrect number of students using buses. The issue involved a clerical error, which the district said it fixed when brought to its attention.
The district was also cited for not having up-to-date information on its bus drivers. At the time of its review, auditors found no records for three drivers, 13 drivers did not have valid licenses and 12 did not have current physical forms. Finally, six drivers did not receive board approval.
Each August, the board approves bus drivers for the upcoming school year.
"The breakdown came when we weren’t receiving those names (after the board met)," Gabriel said.
To correct the finding, First Student provides the district with driver information monthly.
In its lone observation, the state said a risk exists that the district’s software vendors could enter the system without permission. New Castle said it has taken steps to prevent unauthorized access.
"Our audit found that the (district) complied, in all significant respects, with applicable state laws, regulations, contracts, grant requirements and administrative procedures, except as detailed in three findings noted in this report," auditors wrote.
Wednesday, July 15, 2009
Affordable Housing scandal snares two
Published July 15, 2009
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Two New Castle residents will answer to federal charges as part of an investigation into a defunct housing agency.
The U.S. Attorney’s Office in Pittsburgh yesterday alleged Nicholas DeRosa, 64, of 221 N. Cascade St. and Robert Ratkovich, 40, of 512 Norwood Ave. engaged in mortgage fraud.
A federal grand jury indicted DeRosa on one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy. Prosecutors filed a bill of information against Ratkovich, charging him with one count of bank and mail fraud conspiracy and one count of money laundering conspiracy.
The reported fraud focuses on First Commonwealth Bank and a loan it approved for Affordable Housing of Lawrence County.
The Lawrence County Housing Authority created the corporation in 2003 and funded it with $200,000 in federal funds. Affordable Housing declared itself insolvent in March 2006.
“Whoever gave you my phone number, lose it,” Ratkovich told the New Castle News last night.
In May, Ratkovich resigned as the housing authority’s maintenance superintendent. He served in that position since April 2005. Before that, he was the authority’s modernization coordinator.
An attempt to reach DeRosa for comment was unsuccessful. He is a retired assistant superintendent in the New Castle Area School District.
Both men served on city council.
THE CLAIMS
The government claimed DeRosa, Ratkovich, Anthony J. Staph Jr. and a person identified as “G.F.” attempted to defraud First Commonwealth between June 2005 to December 2005. Staph, 43, of 132 Firestone Drive is a city-based real estate appraiser.
Earlier this year, Staph entered a not guilty plea to one count of bank fraud. Pretrial motions in the case have been moved to September.
DeRosa and Ratkovich compiled a list of 14 properties they wanted Affordable Housing to purchase, the U.S. Attorney’s Office said. The rental properties were reportedly ones that DeRosa, family members and friends wanted to sell.
Ratkovich, who had served as the group’s consultant, allegedly recommended to Affordable Housing’s board that it enter into the purchases.
“Unbeknownst to most of the Board of Directors of AHLC, the defendant, Nicholas DeRosa, had entered into agreements with some of the sellers of the properties to kick back money to him after the closings,” according to court records.
REJECTED
First Commonwealth, which has a branch in New Castle, rejected the initial loan proposal. The board trimmed its list to seven properties and reapplied for a $250,000 loan, which the bank approved.
The group obtained the structures in December 2005 for $327,000.
The properties were purchased from DeRosa, 857-859 Frank Ave. ($49,000); DeRosa and John Orlando, 502 Florence Ave. ($48,000), 217-219 E. Wallace Ave. ($45,000) and 1806 Highland Ave. ($72,000); Harry DeRosa, 445-445 1/2 N. Cascade St. ($40,000) and 1123-1125 Dewey Ave. ($45,000); and David L. Defibaugh, 446 Croton Ave. ($28,000).
The government charged that Staph prepared appraisals “that he then knew were false and fraudulent.” The appraisals reportedly misrepresented the value and conditions of the properties in addition to whether they were occupied.
MAIL FRAUD
The two counts of mail fraud against DeRosa involve an unsigned power of attorney that was sent and returned in November 2005 from a person living in Florida. Court records identify the individual as “J.O.” The document was reportedly used in the sale of properties to Affordable Housing.
The board paid Ratkovich $45 an hour to serve as its consultant. During his time with Affordable Housing, he received approximately $60,000.
The government charged that Ratkovich and DeRosa knew that Ratkovich’s recommendation to Affordable Housing “was not the product of a true search of eligible properties and the sale prices were not the product of arm’s length negotiations.”
The indictment claimed Ratkovich also submitted false financial projections regarding the properties to First Commonwealth as part of the loan application.
Ratkovich’s wages also came into question with government attorneys, who called the $60,000 “far in excess of the consulting fees he legitimately earned.” The U.S. Attorney’s Office charged that Ratkovich, DeRosa and “G.F.” agreed to share the funds.
KICKBACKS
The indictment also claimed DeRosa received kickbacks as part of the purchases.
In one instance, a seller listed as “D.D.” in court documents paid DeRosa $5,000.
A portion of the reported payoffs were given to a person identified as “R.J.” and placed into that individual’s account. “R.J.” then wrote checks for $25,000 on Nov. 1, 2005, $10,000 on Dec. 10, 2005, and $5,000 on May 3, 2006, to “an entity known to the United States Attorney.”
If convicted on all counts, DeRosa faces a maximum of 50 years in prison, a $2 million fine or both, according to the U.S. Attorney’s Office. The government said it will also pursue forfeiture of property and cash.
Ratkovich, if found guilty, can be sentenced to a maximum of 40 years in prison, a $750,000 fine or both. The maximum sentence for Staph, if convicted, is 30 years in prison, a $1 million fine or both.
Arraignment dates for DeRosa and Ratkovich have not been announced.
FELASCO
Gary F. Felasco, a former county treasurer, pleaded guilty in February to a misdemeanor charge of failing to file a tax return for 2005. At the time, the U.S. Attorney’s Office said the charge was separate but related to the case involving DeRosa, Ratkovich and Staph.
Felasco is scheduled to be sentenced in August.
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Two New Castle residents will answer to federal charges as part of an investigation into a defunct housing agency.
The U.S. Attorney’s Office in Pittsburgh yesterday alleged Nicholas DeRosa, 64, of 221 N. Cascade St. and Robert Ratkovich, 40, of 512 Norwood Ave. engaged in mortgage fraud.
A federal grand jury indicted DeRosa on one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy. Prosecutors filed a bill of information against Ratkovich, charging him with one count of bank and mail fraud conspiracy and one count of money laundering conspiracy.
The reported fraud focuses on First Commonwealth Bank and a loan it approved for Affordable Housing of Lawrence County.
The Lawrence County Housing Authority created the corporation in 2003 and funded it with $200,000 in federal funds. Affordable Housing declared itself insolvent in March 2006.
“Whoever gave you my phone number, lose it,” Ratkovich told the New Castle News last night.
In May, Ratkovich resigned as the housing authority’s maintenance superintendent. He served in that position since April 2005. Before that, he was the authority’s modernization coordinator.
An attempt to reach DeRosa for comment was unsuccessful. He is a retired assistant superintendent in the New Castle Area School District.
Both men served on city council.
THE CLAIMS
The government claimed DeRosa, Ratkovich, Anthony J. Staph Jr. and a person identified as “G.F.” attempted to defraud First Commonwealth between June 2005 to December 2005. Staph, 43, of 132 Firestone Drive is a city-based real estate appraiser.
Earlier this year, Staph entered a not guilty plea to one count of bank fraud. Pretrial motions in the case have been moved to September.
DeRosa and Ratkovich compiled a list of 14 properties they wanted Affordable Housing to purchase, the U.S. Attorney’s Office said. The rental properties were reportedly ones that DeRosa, family members and friends wanted to sell.
Ratkovich, who had served as the group’s consultant, allegedly recommended to Affordable Housing’s board that it enter into the purchases.
“Unbeknownst to most of the Board of Directors of AHLC, the defendant, Nicholas DeRosa, had entered into agreements with some of the sellers of the properties to kick back money to him after the closings,” according to court records.
REJECTED
First Commonwealth, which has a branch in New Castle, rejected the initial loan proposal. The board trimmed its list to seven properties and reapplied for a $250,000 loan, which the bank approved.
The group obtained the structures in December 2005 for $327,000.
The properties were purchased from DeRosa, 857-859 Frank Ave. ($49,000); DeRosa and John Orlando, 502 Florence Ave. ($48,000), 217-219 E. Wallace Ave. ($45,000) and 1806 Highland Ave. ($72,000); Harry DeRosa, 445-445 1/2 N. Cascade St. ($40,000) and 1123-1125 Dewey Ave. ($45,000); and David L. Defibaugh, 446 Croton Ave. ($28,000).
The government charged that Staph prepared appraisals “that he then knew were false and fraudulent.” The appraisals reportedly misrepresented the value and conditions of the properties in addition to whether they were occupied.
MAIL FRAUD
The two counts of mail fraud against DeRosa involve an unsigned power of attorney that was sent and returned in November 2005 from a person living in Florida. Court records identify the individual as “J.O.” The document was reportedly used in the sale of properties to Affordable Housing.
The board paid Ratkovich $45 an hour to serve as its consultant. During his time with Affordable Housing, he received approximately $60,000.
The government charged that Ratkovich and DeRosa knew that Ratkovich’s recommendation to Affordable Housing “was not the product of a true search of eligible properties and the sale prices were not the product of arm’s length negotiations.”
The indictment claimed Ratkovich also submitted false financial projections regarding the properties to First Commonwealth as part of the loan application.
Ratkovich’s wages also came into question with government attorneys, who called the $60,000 “far in excess of the consulting fees he legitimately earned.” The U.S. Attorney’s Office charged that Ratkovich, DeRosa and “G.F.” agreed to share the funds.
KICKBACKS
The indictment also claimed DeRosa received kickbacks as part of the purchases.
In one instance, a seller listed as “D.D.” in court documents paid DeRosa $5,000.
A portion of the reported payoffs were given to a person identified as “R.J.” and placed into that individual’s account. “R.J.” then wrote checks for $25,000 on Nov. 1, 2005, $10,000 on Dec. 10, 2005, and $5,000 on May 3, 2006, to “an entity known to the United States Attorney.”
If convicted on all counts, DeRosa faces a maximum of 50 years in prison, a $2 million fine or both, according to the U.S. Attorney’s Office. The government said it will also pursue forfeiture of property and cash.
Ratkovich, if found guilty, can be sentenced to a maximum of 40 years in prison, a $750,000 fine or both. The maximum sentence for Staph, if convicted, is 30 years in prison, a $1 million fine or both.
Arraignment dates for DeRosa and Ratkovich have not been announced.
FELASCO
Gary F. Felasco, a former county treasurer, pleaded guilty in February to a misdemeanor charge of failing to file a tax return for 2005. At the time, the U.S. Attorney’s Office said the charge was separate but related to the case involving DeRosa, Ratkovich and Staph.
Felasco is scheduled to be sentenced in August.
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