Pay to be held in escrow

A meeting today could result in the freezing of Felasco's pension.
By VIRGINIA ROSS
VINDICATOR CORRESPONDENT
NEW CASTLE, Pa. -- The Lawrence County commissioners have moved to withhold Treasurer Gary Felasco's wages while criminal charges filed against him earlier this week are pending.
On Thursday, at their weekly caucus, commissioners said Felasco's biweekly paychecks will be placed in an escrow account until the criminal case against him is resolved -- either by conviction or acquittal.
Further, commissioners asked Solicitor John Hodge to file a petition in common pleas court asking that Felasco be barred from the treasurer's office and that he be prohibited from having contact with anyone who works there until the case is resolved.
On Wednesday, the state attorney general's office charged 38-year-old Felasco with theft by failure to make required disposition of funds received, misapplication of entrusted property of government or financial institutions, embezzlement and two counts of conflict of interest.
Felasco was arraigned Wednesday before District Magistrate Samuel Battaglia and is free on $25,000 bond. A preliminary hearing was tentatively scheduled for Wednesday in Lawrence County Central Court.
Solicitor's advice
On Thursday, Hodge told commissioners it would be "totally irresponsible and very inappropriate" for the county to continue paying an elected official who has violated the public's trust as Felasco has.
He said if Felasco is acquitted, he could be entitled to back wages. Therefore, placing his wages in an escrow account would be the most responsible option for commissioners to pursue, he added.
Commissioners have expressed frustration in past months because they do not have the authority to fire the county treasurer. They said Thursday that Hodge advised them against withholding Felasco's paycheck sooner so they could not be accused of jeopardizing criminal investigations of him.
But because the criminal charges filed against Felasco relate to theft and/or embezzlement of county real estate tax money, Hodge advised them to begin withholding Felasco's paychecks immediately.
One of of Felasco's attorneys, Ed Leymarie of Ellwood City, said late Thursday that they would challenge the commissioners' action in court, adding that Felasco is "presumed innocent until proven guilty."
The county retirement board plans to meet today to consider freezing Felasco's pension account. Hodge said if Felasco is convicted, that money could be used for restitution. The 2 p.m. meeting is open to the public.
Result of probe
The charges filed are a culmination of an 18-month investigation into allegations that Felasco used stolen tax dollars to pay his own taxes, and for a van and hotel rooms.
Police contend money was missing from the treasurer's office, and court papers show that he took $44,251.74 from the county tax office from October 2003 to December 2003.
Commissioners removed Felasco as director of the county tax claim bureau, an appointed post, and asked the county district attorney to investigate Felasco. The district attorney's office handed the case over to the state police and attorney general's office.
Last month, county District Attorney Matthew Mangino filed a civil lawsuit against Felasco seeking to have him removed from office. Mangino's complaint contends that Felasco has abandoned his office and now lives in Ashtabula, Ohio, with his estranged wife and children. According to county code, an elected county official must live in the county.