Another plea in Lawrence County housing fraud case

Staff report

pittsburgh

A New Castle man pleaded guilty Thursday in federal court over his role in a scheme to defraud a nonprofit housing agency, the U.S. attorney’s office said.

Nicholas DeRosa, 65, of 221 N. Cascade St., pleaded guilty to one count each of bank fraud, mail fraud and money-laundering conspiracy.

He was charged in connection with properties he sold to Affordable Housing of Lawrence County after he and others involved in the scheme colluded to inflate the value of the properties, the U.S. attorney’s office said.

Those fraudulent appraisals were submitted to the First Commonwealth Bank, which lent Affordable Housing the money to buy seven properties, the U.S. attorney said. DeRosa owned four of those properties either individually or in a partnership.

Also involved in the scheme, says the U.S. attorney, was Gary Felasco, former county treasurer and head of the Lawrence County Housing Authority; Robert Ratkovich, a former New Castle city council president and housing authority maintenance employee; and Anthony J. Staph, a vice-president of Castle Realty Appraisal Services on Wilmington Road. Castle Realty Appraisal pleaded guilty Wednesday to a charge of bank fraud.

“At trial, the government would have presented evidence that Affordable Housing was used as a mechanism to get money to Felasco, Ratkovich, DeRosa and a fourth co-conspirator,” the U.S. attorney’s office said Thursday.

According to information provided by the U.S. attorney, the scheme dates back to 2004.

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