By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
The scene was familiar to Chris Niles.
Cheers, clapping and high fives. “Eye of the Tiger” booming. A community pep rally to honor its hero.
The Hickory Township resident relishes competition. Niles’ latest victory overshadowed sports.
The 1995 Laurel graduate made a public appearance yesterday afternoon almost seven weeks after suffering a spinal injury.
“Just amazing,” Niles said of the approximately 100 people who gathered outside his Lakewood Road home. “It’s crazy. I didn’t expect it.
“There’s a lot of people who care about me. That’s a good thing.”
Laurel Elementary students crafted approximately 600 signs to welcome Niles’ return and encourage him in his recovery. The signs, each attached with a green-and-white, heart-shaped balloon, lined the length of Lakewood Road — from Eastbrook Road to Maitland Lane.
The community joined high school and elementary school cheerleaders in celebrating his arrival. Youth baseball players whooped, hollered and smacked their coach’s hand as he passed by.
The accident occurred in early March when a partially dead tree fell on Niles as he worked to take it down. He was trapped for four hours before rescue personnel arrived.
“I knew it was bad,” his brother, Jeff, recalled. “It was overwhelming that day. Chris was a trooper. I don’t know if most people could handle that.
“He is so strong and positive. It’s mind-boggling. He’s very positive and thankful to be alive.”
Niles was taken to Presbyterian Hospital in Pittsburgh for surgery and transferred to Mercy Hospital for initial rehabilitation. While paralyzed below the waist, Niles has taken an aggressive attitude toward therapy.
“Anything that was in front of me, I figured a way to get it done,” he said. “I feel that way about this, too.
“I’ve got kids to raise. When I was at Mercy, I put two pictures up of them. Every morning, I just got up and looked at them. I got up and did what I had to do. I didn’t do anything else. I didn’t think about the pain.”
Brother-in-law Ray Omer said doctors hope Niles’ gains will take place through additional rehab.
“He’s worked hard at it. When they call him “Rocky,” it’s no joke. He trains hard at everything he’s done. He’s overcome a lot of obstacles already.”
Niles is a former Laurel High School athlete, who played in the Laurel vs. Shenango alumni football game in November. He also won a national jujitsu title last summer in the Arnold Schwarzenegger Classic in Columbus.
Family, friends, neighbors and strangers bonded to help the Niles’ family.
“When you get hurt, all those things you can’t do you think about,” Niles said.
They cleared the back lot, performed work on the home and took on household chores.
Husband-and-wife architects Frank Ross and Toyna Natale started the process to adapt the house to Niles’ needs. Ross said doors will be widened, an elevator installed, barrier-free restrooms built and other modifications completed within a couple of months.
“We’ve had a ton of help,” he said. “People are coming over with saws.”
Niles had been to his home twice before yesterday’s event.
“The first day was tough for me. (Wife) Jennifer and I just cried. The second time was easier.”
Jennifer Niles said the community’s response has been incredible.
“Everyone in the community has come out to support us. We want to thank everyone for all they have done.”
Omer said the events dispelled a notion he had.
“Just when I thought it was every man, woman and child out for themselves, there’s been an awaking for me as well. The goodness of people is just pouring out.”
Wednesday, April 20, 2011
Thursday, April 14, 2011
Primary center's destiny delayed
By PATRICK E LITOWITZ
plitowitz@ncnewsonline.com
New Castle’s school board agreed to wait on a consultant’s recommendation before deciding on an early learning center’s future.
In the only show of unity regarding the $19 million project, the board voted 8-0 last night to hire Education Management Group LLC for $3,700.
Superintendent George Gabriel requested that the board allow a third party provide an analysis on whether it’s best to maintain the district’s three primary centers or renovate Lockley Kindergarten Center into a facility for students in kindergarten through second grade. At Monday’s work session, four of the seven members requested a vote to reconsider the project.
Company representative Dr. Ronald Stainbrook, a retired state Department of Education official, will supervise the evaluation.
“He will identify educational advantages (and) disadvantages to keeping the three elementary facilities or closing them and operating a single new (and) renovated facility,” Gabriel said.
Stainbrook, who worked as the state’s director of schools, was part of a group that studied that district’s finances in the early 1990s.
“This is his expertise,” Gabriel said.
The report will be completed within 20 days of his visit to the district. Business manager Joseph Ambrosini said he will speak to Stainbrook today regarding his arrival date.
Except for a question seeking clarification, the board passed the measure without comment.
During the visitors’ portion of the meeting, a district kindergarten teacher and a former school board member offered different views on the project.
“(Lockley) has not changed to meet the demands of our earliest learners,” said Victoria Bober, who teaches at Lockley. “This is also true for our other existing primary centers.”
Bober said the kindergarten center lacks the basics to accommodate its 300 students. She cited a leaking roof and malfunctioning boiler system among its problems.
“It is not an uncommon sight to walk down the hall without students having to walk around buckets that our collecting rainwater.
“Putting a Band-Aid on a severe wound that is bleeding profusely does not work.”
Philip Conti said the board must focus on the district’s $60 million debt service and the state’s reduced assistance.
“We cannot afford to assume any more debt,” said the former board member and retired educator. “Anyone who doesn’t understand that doesn’t understand fiscal responsibility.”
He added that although the board hasn’t raised taxes in at least seven years, New Castle has the highest taxes in Lawrence County.
“Where are you going to get the money to fund that debt? It’s going to have to come from the taxpayers,” he said.
“Debt is the most vicious form of taxation.”
Board member Mary Ann Tofel participated in the meeting through a conference call. Fred Mozzocio was out of town on a business-related trip.
plitowitz@ncnewsonline.com
New Castle’s school board agreed to wait on a consultant’s recommendation before deciding on an early learning center’s future.
In the only show of unity regarding the $19 million project, the board voted 8-0 last night to hire Education Management Group LLC for $3,700.
Superintendent George Gabriel requested that the board allow a third party provide an analysis on whether it’s best to maintain the district’s three primary centers or renovate Lockley Kindergarten Center into a facility for students in kindergarten through second grade. At Monday’s work session, four of the seven members requested a vote to reconsider the project.
Company representative Dr. Ronald Stainbrook, a retired state Department of Education official, will supervise the evaluation.
“He will identify educational advantages (and) disadvantages to keeping the three elementary facilities or closing them and operating a single new (and) renovated facility,” Gabriel said.
Stainbrook, who worked as the state’s director of schools, was part of a group that studied that district’s finances in the early 1990s.
“This is his expertise,” Gabriel said.
The report will be completed within 20 days of his visit to the district. Business manager Joseph Ambrosini said he will speak to Stainbrook today regarding his arrival date.
Except for a question seeking clarification, the board passed the measure without comment.
During the visitors’ portion of the meeting, a district kindergarten teacher and a former school board member offered different views on the project.
“(Lockley) has not changed to meet the demands of our earliest learners,” said Victoria Bober, who teaches at Lockley. “This is also true for our other existing primary centers.”
Bober said the kindergarten center lacks the basics to accommodate its 300 students. She cited a leaking roof and malfunctioning boiler system among its problems.
“It is not an uncommon sight to walk down the hall without students having to walk around buckets that our collecting rainwater.
“Putting a Band-Aid on a severe wound that is bleeding profusely does not work.”
Philip Conti said the board must focus on the district’s $60 million debt service and the state’s reduced assistance.
“We cannot afford to assume any more debt,” said the former board member and retired educator. “Anyone who doesn’t understand that doesn’t understand fiscal responsibility.”
He added that although the board hasn’t raised taxes in at least seven years, New Castle has the highest taxes in Lawrence County.
“Where are you going to get the money to fund that debt? It’s going to have to come from the taxpayers,” he said.
“Debt is the most vicious form of taxation.”
Board member Mary Ann Tofel participated in the meeting through a conference call. Fred Mozzocio was out of town on a business-related trip.
Tuesday, April 12, 2011
Corbett Effect: Board to reconsider renovation
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
The New Castle Area School Board is prepared to halt plans for an early learning center.
Gov. Tom Corbett’s proposed budget has some board members worrying how the district can operate with $3.3 million less in state subsidies while undertaking a $19 million renovation project.
Its fate is expected to be determined during tomorrow’s regular board meeting. Four of the seven board members want to reconsider the venture in response to Superintendent George Gabriel’s call for a vote of confidence.
“I think about everywhere I went — phone calls I received — people in the community are scared,” Anna Pascarella said at last night’s work session. “The ones who really want to be honest with us will say we probably should not move forward with this.
“If we do, we need to scale it down from $19 million.”
Pascarella was joined by Dr. Marilyn K. Berkely, Brad Olson and Barbara Razzano.
“Up to this point we had additional funding. Now we don’t,” Pascarella said later in the meeting. “That makes a big difference.”
J. Allan Joseph, Mark Kirkwood and Karen Humphrey said they want to continue with the project. Fred Mozzocio and Mary Ann Tofel were absent.
The development comes as Gabriel was prepared to release a video and unveil a website designed to promote and answer questions about the renovation.
“We did a very poor job of getting the word out,” the superintendent said.
The Harry W. Lockley Early Learning Center would bring students in kindergarten through second grade into one facility, located on the site of the Lockley Kindergarten Center. Third-graders are scheduled to move to the George Washington Intermediate Elementary School. The consolidation plan closes West Side, John F. Kennedy and Thaddeus Stevens primary centers.
“Whether you build the project or you can it, you still have $3.3 million you have to deal with,” Gabriel said. “Plus, if you can it, you have four old buildings you have to deal with.”
Business manager Joseph Ambrosini said the district will hold sessions next month as it prepares the 2011-2012 school year budget. The district also is in negotiations with its teachers union.
“We have made substantial cuts, but we just haven’t brought it to the (board) yet,” Gabriel said.
He added that district administrators and staff have been asked to provide input on trimming expenditures. The superintendent also noted “raising taxes is not on our radar.”
With a $12 million fund balance, Ambrosini said New Castle is “doing OK financially.”
He called the early learning center an opportunity to generate additional savings through reductions in staff and building costs.
“I’m the last person who would stand behind this building project if I didn’t think it was a good idea financially,” he said. “I would tell George that.
“Don’t lose sight of consolidating four buildings into one. That’s the difference.”
Olson asked what would happen if state funding continued to decline.
“Yes, we have a great fund balance right now,” he said. “We can make plans to adjust for this year’s $3.3 million loss. What if next year, it’s a $3.3 million loss additional and the following year is another $3.3 million.”
Gabriel said if that were the case then all of the state’s public school systems would eventually shut down.
“I guess we can all agree it’s not going to get any better,” Berkely said.
plitowitz@ncnewsonline.com
The New Castle Area School Board is prepared to halt plans for an early learning center.
Gov. Tom Corbett’s proposed budget has some board members worrying how the district can operate with $3.3 million less in state subsidies while undertaking a $19 million renovation project.
Its fate is expected to be determined during tomorrow’s regular board meeting. Four of the seven board members want to reconsider the venture in response to Superintendent George Gabriel’s call for a vote of confidence.
“I think about everywhere I went — phone calls I received — people in the community are scared,” Anna Pascarella said at last night’s work session. “The ones who really want to be honest with us will say we probably should not move forward with this.
“If we do, we need to scale it down from $19 million.”
Pascarella was joined by Dr. Marilyn K. Berkely, Brad Olson and Barbara Razzano.
“Up to this point we had additional funding. Now we don’t,” Pascarella said later in the meeting. “That makes a big difference.”
J. Allan Joseph, Mark Kirkwood and Karen Humphrey said they want to continue with the project. Fred Mozzocio and Mary Ann Tofel were absent.
The development comes as Gabriel was prepared to release a video and unveil a website designed to promote and answer questions about the renovation.
“We did a very poor job of getting the word out,” the superintendent said.
The Harry W. Lockley Early Learning Center would bring students in kindergarten through second grade into one facility, located on the site of the Lockley Kindergarten Center. Third-graders are scheduled to move to the George Washington Intermediate Elementary School. The consolidation plan closes West Side, John F. Kennedy and Thaddeus Stevens primary centers.
“Whether you build the project or you can it, you still have $3.3 million you have to deal with,” Gabriel said. “Plus, if you can it, you have four old buildings you have to deal with.”
Business manager Joseph Ambrosini said the district will hold sessions next month as it prepares the 2011-2012 school year budget. The district also is in negotiations with its teachers union.
“We have made substantial cuts, but we just haven’t brought it to the (board) yet,” Gabriel said.
He added that district administrators and staff have been asked to provide input on trimming expenditures. The superintendent also noted “raising taxes is not on our radar.”
With a $12 million fund balance, Ambrosini said New Castle is “doing OK financially.”
He called the early learning center an opportunity to generate additional savings through reductions in staff and building costs.
“I’m the last person who would stand behind this building project if I didn’t think it was a good idea financially,” he said. “I would tell George that.
“Don’t lose sight of consolidating four buildings into one. That’s the difference.”
Olson asked what would happen if state funding continued to decline.
“Yes, we have a great fund balance right now,” he said. “We can make plans to adjust for this year’s $3.3 million loss. What if next year, it’s a $3.3 million loss additional and the following year is another $3.3 million.”
Gabriel said if that were the case then all of the state’s public school systems would eventually shut down.
“I guess we can all agree it’s not going to get any better,” Berkely said.
Wednesday, April 6, 2011
Judge supports district in race case
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A federal court has dismissed a race discrimination lawsuit against the New Castle Area School District.
In a ruling issued Monday, U.S. District Judge Donetta W. Ambrose granted the district’s request for a summary judgment in its case with former student Joshua Stewart. Ambrose, citing a report prepared in February, ruled Stewart failed to prove that the district expelled him based on his race.
The lawsuit was an offshoot of the drug-related death of Erica Jo Million. The New Castle High sophomore consumed oxycodone Feb. 27, 2007, while in school. The 16-year-old died five days later.
Her death was ruled accidental.
A month later, the school board voted 7-0 to expel Stewart for violating the school’s drug policy in distributing and selling a controlled substance to Million. The board’s decision was later upheld in Lawrence County common pleas court.
Stewart was placed on juvenile probation in April 2008. Common pleas Judge John Hodge said the evidence against the teen supported a juvenile charge of possession with intent to deliver.
Stewart’s attorney, Keenan D. Holmes, argued his client’s punishment was excessive when compared to white students who had committed similar offenses. Attempts to reach Holmes were unsuccessful.
The report, authored by U.S. Magistrate Judge Robert C. Mitchell, said Stewart could not prove the school district’s investigation was biased.
“(New Castle) had evidence that the plaintiff violated its Drug and Alcohol Policy,” Mitchell wrote.
The federal Office for Civil Rights had determined in October 2007 that Stewart “did not provide a sufficient factual basis to support his claim that he was treated differently than (white students).”
plitowitz@ncnewsonline.com
A federal court has dismissed a race discrimination lawsuit against the New Castle Area School District.
In a ruling issued Monday, U.S. District Judge Donetta W. Ambrose granted the district’s request for a summary judgment in its case with former student Joshua Stewart. Ambrose, citing a report prepared in February, ruled Stewart failed to prove that the district expelled him based on his race.
The lawsuit was an offshoot of the drug-related death of Erica Jo Million. The New Castle High sophomore consumed oxycodone Feb. 27, 2007, while in school. The 16-year-old died five days later.
Her death was ruled accidental.
A month later, the school board voted 7-0 to expel Stewart for violating the school’s drug policy in distributing and selling a controlled substance to Million. The board’s decision was later upheld in Lawrence County common pleas court.
Stewart was placed on juvenile probation in April 2008. Common pleas Judge John Hodge said the evidence against the teen supported a juvenile charge of possession with intent to deliver.
Stewart’s attorney, Keenan D. Holmes, argued his client’s punishment was excessive when compared to white students who had committed similar offenses. Attempts to reach Holmes were unsuccessful.
The report, authored by U.S. Magistrate Judge Robert C. Mitchell, said Stewart could not prove the school district’s investigation was biased.
“(New Castle) had evidence that the plaintiff violated its Drug and Alcohol Policy,” Mitchell wrote.
The federal Office for Civil Rights had determined in October 2007 that Stewart “did not provide a sufficient factual basis to support his claim that he was treated differently than (white students).”
Tuesday, March 29, 2011
Wednesday, March 23, 2011
DeRosa judge sends message
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
PITTSBURGH — A judge showed little sympathy toward Nicholas DeRosa for his role in the Affordable Housing mortgage scandal.
However, U.S. District Judge Gustave Diamond made one concession. The retired New Castle educator and former city councilman could be housed in a federal prison close to home — if accommodations were available.
Diamond rebuffed defense attorney Efrem M. Grail’s request for a reduced sentence yesterday afternoon when he ordered that DeRosa spend 41 months in prison, pay approximately $312,000 in restitution and serve three years of supervised release.
“It’s appropriate to send an important message to officials who want to line their pockets,” Diamond said. “Hopefully, this will deter other public officials from engaging in similar conduct.
“The sentence is one that should protect the public from the defendant.”
The U.S. Attorney’s Office targeted the North Cascade Street resident as the leader of a scheme to sell handpicked structures to a nonprofit agency at inflated prices. DeRosa owned or co-owned four of the seven properties.
Affordable Housing of Lawrence County obtained a $250,000 loan in December 2005 for the purchases. Within three months, the agency declared itself insolvent with debts nearing a half-million dollars.
DeRosa, indicted by a federal grand jury, originally pleaded not guilty to felony counts of bank fraud, mail fraud and money laundering conspiracy. Prosecutors filed the charges in July 2009. He changed his plea last October.
DELAY
Prior to sentencing, DeRosa forced a 20-minute delay when he attempted to withdraw his plea agreement.
“The motion he has made today is his,” Grail said. “With respect to this matter, I have a conflict.”
DeRosa said he struggled with admitting guilt.
“I can’t change my (original) plea for things I didn’t do,” he said.
However, he was concerned for his family, which includes two grandchildren.
“I tried to stop the suffering of the family. That was really the reason I changed my plea (in October).
“Since that day I haven’t been right. I haven’t had a good night’s sleep since I signed my plea. I should have never signed those papers.”
DeRosa then claimed he did not write the Feb. 22 letter to Diamond in which he professed his guilt. He stated Grail’s office produced the correspondence.
“I didn’t know I had to write a letter. I glanced at it. It looked all right to me.”
DeRosa acknowledged he had signed the letter.
“I would have never called myself a convict. I would have never said I was broke.”
Diamond then responded.
“You have a master’s degree in education?”
DeRosa answered yes.
“You sent this letter to me. Where did you think this letter was going?”
To approve DeRosa’s motion, Diamond said he had to consider three issues: DeRosa’s assertion of innocence; a valid reason; and show the government’s case would not be prejudiced by the action.
“You have not even come close,” the judge said. “On the contrary, the evidence is very strong against you in this case.”
He later commented, “I’ve not heard an assertion of innocence yet. Are you denying your guilt in this case?”
DeRosa didn’t directly answer.
The judge then denied the change of plea request.
With the hearing under way, Grail portrayed DeRosa as a proud and kind man who spent his life helping his community.
“The government would have the court believe Mr. DeRosa is the worst criminal in the last 15 years,” he continued. “Mr. DeRosa admitted to taking $12,500.
“(He’s an) aging 65-year-old struggling to understand the events around him.”
Grail pointed to co-conspirators Gary Felasco, Robert Ratkovich and Donald “Ducky” Conti as the men responsible for the fraud.
“Mr. DeRosa wasn’t a member of this board. He didn’t make decisions.”
Conti, who received immunity from prosecution, served on the Lawrence County Housing Authority and Affordable Housing boards.
A convicted former county treasurer, Felasco had been the housing authority chairman. Ratkovich was Affordable Housing’s consultant and oversaw the housing authority’s maintenance department. They received reduced sentences for their cooperation.
Grail said DeRosa made another mistake he didn’t disclose to the court.
“He spent his time with people who did bad things.”
POWER
Assistant U.S. Attorney Brendan T. Conway said Felasco, Ratkovich and Conti produced evidence that DeRosa was a man of enormous power.
“He was the power broker and behind-the-scenes person to make things happen,” he said.
Before sentencing, Diamond briefly discussed the letters he received related to the case. DeRosa’s backers spoke of his good works, while foes detailed an unflattering portrait.
“They virtually cancel themselves out,” he said.
At Grail’s urging, unsigned letters were removed from court documents.
Diamond cited the seriousness of the crime in denying a reduced sentence.
“The fact an individual has a clean record does not give him a free, one shot (to commit a crime),” he said. “That message should be conveyed.”
Along with the 41-month prison term, Diamond ordered DeRosa to repay $224,000 to First Commonwealth and $88,000 to Affordable Housing. With the nonprofit operation no longer in operation, it is uncertain if the housing authority would receive the funds. The authority created Affordable Housing in 2003 using $200,000 in federal funds.
An attempt to reach the U.S. Attorney’s Office for clarification was unsuccessful.
The U.S. Department of Housing and Urban Development, which funds the housing authority, has consistently declined to discuss the case.
Diamond said the government may take 10 percent of DeRosa’s $8,000 monthly pension for repayment. Conway had asked for a higher amount. The judge also declined to assess a fine.
DeRosa, who has 10 days to appeal Diamond’s sentence, was given until noon May 19 to report to the U.S. Marshals Service. He remains free on an unsecured $10,000 bond.
“The prison time received by Mr. DeRosa should serve as a strong warning that tough punishment awaits those who embark on a similar criminal path,” said Thomas Jankowski, special agent in charge, IRS-Criminal Investigation, Pittsburgh field office.
The IRS-Criminal Investigation unit is part of the Mortgage Fraud Task Force that investigated DeRosa.
plitowitz@ncnewsonline.com
PITTSBURGH — A judge showed little sympathy toward Nicholas DeRosa for his role in the Affordable Housing mortgage scandal.
However, U.S. District Judge Gustave Diamond made one concession. The retired New Castle educator and former city councilman could be housed in a federal prison close to home — if accommodations were available.
Diamond rebuffed defense attorney Efrem M. Grail’s request for a reduced sentence yesterday afternoon when he ordered that DeRosa spend 41 months in prison, pay approximately $312,000 in restitution and serve three years of supervised release.
“It’s appropriate to send an important message to officials who want to line their pockets,” Diamond said. “Hopefully, this will deter other public officials from engaging in similar conduct.
“The sentence is one that should protect the public from the defendant.”
The U.S. Attorney’s Office targeted the North Cascade Street resident as the leader of a scheme to sell handpicked structures to a nonprofit agency at inflated prices. DeRosa owned or co-owned four of the seven properties.
Affordable Housing of Lawrence County obtained a $250,000 loan in December 2005 for the purchases. Within three months, the agency declared itself insolvent with debts nearing a half-million dollars.
DeRosa, indicted by a federal grand jury, originally pleaded not guilty to felony counts of bank fraud, mail fraud and money laundering conspiracy. Prosecutors filed the charges in July 2009. He changed his plea last October.
DELAY
Prior to sentencing, DeRosa forced a 20-minute delay when he attempted to withdraw his plea agreement.
“The motion he has made today is his,” Grail said. “With respect to this matter, I have a conflict.”
DeRosa said he struggled with admitting guilt.
“I can’t change my (original) plea for things I didn’t do,” he said.
However, he was concerned for his family, which includes two grandchildren.
“I tried to stop the suffering of the family. That was really the reason I changed my plea (in October).
“Since that day I haven’t been right. I haven’t had a good night’s sleep since I signed my plea. I should have never signed those papers.”
DeRosa then claimed he did not write the Feb. 22 letter to Diamond in which he professed his guilt. He stated Grail’s office produced the correspondence.
“I didn’t know I had to write a letter. I glanced at it. It looked all right to me.”
DeRosa acknowledged he had signed the letter.
“I would have never called myself a convict. I would have never said I was broke.”
Diamond then responded.
“You have a master’s degree in education?”
DeRosa answered yes.
“You sent this letter to me. Where did you think this letter was going?”
To approve DeRosa’s motion, Diamond said he had to consider three issues: DeRosa’s assertion of innocence; a valid reason; and show the government’s case would not be prejudiced by the action.
“You have not even come close,” the judge said. “On the contrary, the evidence is very strong against you in this case.”
He later commented, “I’ve not heard an assertion of innocence yet. Are you denying your guilt in this case?”
DeRosa didn’t directly answer.
The judge then denied the change of plea request.
With the hearing under way, Grail portrayed DeRosa as a proud and kind man who spent his life helping his community.
“The government would have the court believe Mr. DeRosa is the worst criminal in the last 15 years,” he continued. “Mr. DeRosa admitted to taking $12,500.
“(He’s an) aging 65-year-old struggling to understand the events around him.”
Grail pointed to co-conspirators Gary Felasco, Robert Ratkovich and Donald “Ducky” Conti as the men responsible for the fraud.
“Mr. DeRosa wasn’t a member of this board. He didn’t make decisions.”
Conti, who received immunity from prosecution, served on the Lawrence County Housing Authority and Affordable Housing boards.
A convicted former county treasurer, Felasco had been the housing authority chairman. Ratkovich was Affordable Housing’s consultant and oversaw the housing authority’s maintenance department. They received reduced sentences for their cooperation.
Grail said DeRosa made another mistake he didn’t disclose to the court.
“He spent his time with people who did bad things.”
POWER
Assistant U.S. Attorney Brendan T. Conway said Felasco, Ratkovich and Conti produced evidence that DeRosa was a man of enormous power.
“He was the power broker and behind-the-scenes person to make things happen,” he said.
Before sentencing, Diamond briefly discussed the letters he received related to the case. DeRosa’s backers spoke of his good works, while foes detailed an unflattering portrait.
“They virtually cancel themselves out,” he said.
At Grail’s urging, unsigned letters were removed from court documents.
Diamond cited the seriousness of the crime in denying a reduced sentence.
“The fact an individual has a clean record does not give him a free, one shot (to commit a crime),” he said. “That message should be conveyed.”
Along with the 41-month prison term, Diamond ordered DeRosa to repay $224,000 to First Commonwealth and $88,000 to Affordable Housing. With the nonprofit operation no longer in operation, it is uncertain if the housing authority would receive the funds. The authority created Affordable Housing in 2003 using $200,000 in federal funds.
An attempt to reach the U.S. Attorney’s Office for clarification was unsuccessful.
The U.S. Department of Housing and Urban Development, which funds the housing authority, has consistently declined to discuss the case.
Diamond said the government may take 10 percent of DeRosa’s $8,000 monthly pension for repayment. Conway had asked for a higher amount. The judge also declined to assess a fine.
DeRosa, who has 10 days to appeal Diamond’s sentence, was given until noon May 19 to report to the U.S. Marshals Service. He remains free on an unsecured $10,000 bond.
“The prison time received by Mr. DeRosa should serve as a strong warning that tough punishment awaits those who embark on a similar criminal path,” said Thomas Jankowski, special agent in charge, IRS-Criminal Investigation, Pittsburgh field office.
The IRS-Criminal Investigation unit is part of the Mortgage Fraud Task Force that investigated DeRosa.
Monday, March 21, 2011
DeRosa letters keep on coming
By PATRICK E. LITOWITZ
New Castle News
Nicholas DeRosa’s backers and detractors continue their letter campaigns as the retired educator prepares to be sentenced for mortgage fraud.
Federal prosecutors and DeRosa’s defense team submitted 10 letters Friday to U.S. District Judge Gustave Diamond. The New Castle resident will be appear at 10 a.m. Tuesday in Pittsburgh federal court.
In a deal accepted on Oct. 29, 2010, DeRosa pleaded guilty to felony counts of bank fraud, mail fraud and conspiracy to commit money laundering. As his court date approached, the retired city educator attempted to minimize his role in the scheme that caused Affordable Housing of Lawrence County to default on a $250,000 loan from First Commonwealth Bank.
Family members, friends, city school district administrators, Slippery Rock University officials and other associates offered support to DeRosa through letters.
Publication of the correspondences generated criticism from city residents, who attacked DeRosa and those backing him. The latest letters, including one from a district principal and a former school board member, highlight DeRosa’s divisive nature.
Mark Elisco, principal of the George Washington Intermediate Elementary, said he worked with DeRosa as an educator and on city council.
“Without question, Nick has been one of the most influential forces for the common good in my professional life,” he wrote on personal stationery.
“I learned from Nick how to squeeze dollars out of tight municipal budgets for low-income budgets to use for recreational facilities for kids to use as athletics, arts and crafts, and free lunches throughout many summers.
In her letter to prosecutors, former board member Andrea Przybylski turned in a state audit of school operations, dated July 2003.
The state Department of the Auditor General’s report focused on DeRosa’s travel practices, financial interests, reimbursements and food purchases made from the district.
“DeRosa’s actions in the HUD scandal were not a result in a lapse of judgment, but a pattern of behavior which included abuses of his position, as assistant superintendent, at the cost of taxpayers and students,” she wrote.
“As a former board member, I witnessed his significant influence in a system plagued by nepotism, favoritism and questionable practices.”
Edward L. Van Dusen, another city resident called for jail time.
“People get sent to jail for stealing $50 from Walmart or Uni-Mart, usually because they are poor or need drug money,” he wrote. “Here we have an intelligent, well-paid college graduate who does not have to steal to put food on his table conspire to steal from the U.S. government.”
In her support of DeRosa, city resident Amy DiMuccio rejected a New Castle News editorial that suggested people backing the former educator didn’t represent the views of most city and county residents.
“(What) I don’t understand is why the New Castle News felt compelled to print articles that question the motives of those who support Mr. DeRosa and encourage people to write to (the U.S. Attorney) and give you “ammunition” to use against Mr. DeRosa.”
An 86-year-old woman from DeRosa’s Croton neighborhood expressed her anger with his supporters.
“We’re from a little town in New Castle, Pa., or ‘Little Italy,’" she wrote. “With Mr. DeRosa … if you are Italian you are ‘in.’ Many people (if you were Italian and especially if you had the Dolly Parton look) got jobs with his help.
“No doubt the judge will rule in his favor and he will avoid jail time and receive probation only.”
New Castle News
Nicholas DeRosa’s backers and detractors continue their letter campaigns as the retired educator prepares to be sentenced for mortgage fraud.
Federal prosecutors and DeRosa’s defense team submitted 10 letters Friday to U.S. District Judge Gustave Diamond. The New Castle resident will be appear at 10 a.m. Tuesday in Pittsburgh federal court.
In a deal accepted on Oct. 29, 2010, DeRosa pleaded guilty to felony counts of bank fraud, mail fraud and conspiracy to commit money laundering. As his court date approached, the retired city educator attempted to minimize his role in the scheme that caused Affordable Housing of Lawrence County to default on a $250,000 loan from First Commonwealth Bank.
Family members, friends, city school district administrators, Slippery Rock University officials and other associates offered support to DeRosa through letters.
Publication of the correspondences generated criticism from city residents, who attacked DeRosa and those backing him. The latest letters, including one from a district principal and a former school board member, highlight DeRosa’s divisive nature.
Mark Elisco, principal of the George Washington Intermediate Elementary, said he worked with DeRosa as an educator and on city council.
“Without question, Nick has been one of the most influential forces for the common good in my professional life,” he wrote on personal stationery.
“I learned from Nick how to squeeze dollars out of tight municipal budgets for low-income budgets to use for recreational facilities for kids to use as athletics, arts and crafts, and free lunches throughout many summers.
In her letter to prosecutors, former board member Andrea Przybylski turned in a state audit of school operations, dated July 2003.
The state Department of the Auditor General’s report focused on DeRosa’s travel practices, financial interests, reimbursements and food purchases made from the district.
“DeRosa’s actions in the HUD scandal were not a result in a lapse of judgment, but a pattern of behavior which included abuses of his position, as assistant superintendent, at the cost of taxpayers and students,” she wrote.
“As a former board member, I witnessed his significant influence in a system plagued by nepotism, favoritism and questionable practices.”
Edward L. Van Dusen, another city resident called for jail time.
“People get sent to jail for stealing $50 from Walmart or Uni-Mart, usually because they are poor or need drug money,” he wrote. “Here we have an intelligent, well-paid college graduate who does not have to steal to put food on his table conspire to steal from the U.S. government.”
In her support of DeRosa, city resident Amy DiMuccio rejected a New Castle News editorial that suggested people backing the former educator didn’t represent the views of most city and county residents.
“(What) I don’t understand is why the New Castle News felt compelled to print articles that question the motives of those who support Mr. DeRosa and encourage people to write to (the U.S. Attorney) and give you “ammunition” to use against Mr. DeRosa.”
An 86-year-old woman from DeRosa’s Croton neighborhood expressed her anger with his supporters.
“We’re from a little town in New Castle, Pa., or ‘Little Italy,’" she wrote. “With Mr. DeRosa … if you are Italian you are ‘in.’ Many people (if you were Italian and especially if you had the Dolly Parton look) got jobs with his help.
“No doubt the judge will rule in his favor and he will avoid jail time and receive probation only.”
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