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DeRosa arraignment moved again


New Castle News

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.

http://www.ncnewsonline.com/local/local_story_243095825.html

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