Housing entity's finances warrant a criminal probe

When a deceased board member of a non-profit housing entity that has received public dollars is blamed for its financial mess, an audit of the books isn't sufficient. A criminal investigation to determine whether there has been a misappropriation of funds is necessary.
Last week, Jon Librandi, who died after a September motorcycle crash, was cited by Ducky Conti, former board member of Affordable Housing of Lawrence County, for not submitting financial reports for about six months before his death. Conti also claimed that Librandi was responsible for coin laundry collection. Affordable Housing's 2005 receipts showed no income from a contract it had with the Housing Authority of Lawrence County to collect money from laundry machines at the authority's high-rises.
Affordable Housing is an offshoot of the Housing Authority, which funneled $200,000 to the non-profit entity from its grant allocation from the U.S. Department of Housing and Urban Development.
In a letter to HUD, Deno DeLorenzo, an Affordable Housing board member and treasurer, stated that $4,563.36 laundry commission was paid in disbursements -- even though the 2005 receipts showed no income from the laundry machines contract. DeLorenzo also wrote that the bulk of Affordable Housing's costs were payments to Diamond Consulting, owned by Rob Ratkovich, president of the New Castle City Council and maintenance director of the Housing Authority of Lawrence County.
But what is significant about DeLorenzo's letter is his admission to county commissioners that he could not explain some of the figures he submitted to the federal agency. A story on the front page of the Local section of Thursday's Vindicator contains some details of Affordable Housing's financial transactions, including unexplainable disbursements on the balance sheet prepared by DeLorenzo.
'Rewards'
For instance, none of the board members has an explanation for a $2,000 expenditure for "Rewards" in 2004.
It is clear that a regular audit by the U.S. Department of Housing and Urban Development will not shed light on what has been taking place since Affordable Housing was created in 2003. In addition to the $200,000 from the county's housing authority, Affordable secured a $250,000 bank loan last year to buy seven duplexes, triplexes and fourplexes in New Castle at prices far above their county assessed value. Most of the structures were owned by New Castle Schools Assistant Superintendent Nick DeRosa and his cousin, Harry DeRosa.
Given DeLorenzo's admission that he could not explain some of the figures he put together in his letter to the federal government, and given former board member Conti's claim that the late Jon Librandi was responsible for the finances when he was on the board, a law enforcement agency with subpoena powers must be brought in to investigate what has occurred.
Librandi can't defend himself, which means his involvement in Affordable Housing can only be determined by having access to his private records. An audit of the entity's books will not shed the kind of light necessary to determine how business was conducted by Affordable Housing.