Published November 21, 2009 07:57 am - The Affordable Housing scandal has spread to Shenango Township. On Tuesday, a New Castle resident was indicted for allegedly lying to a federal grand jury last year.
ONGOING PROBE: Housing scandal reaches Shenango
By Carol Colaizzi and Debbie Wachter Morris
New Castle News
The Affordable Housing scandal has spread to Shenango Township.
On Tuesday, a New Castle resident was indicted for allegedly lying to a federal grand jury last year.
On Thursday, a spokeswoman for the U.S. attorney’s office in Pittsburgh confirmed that charge is linked to the probe of Affordable Housing of Lawrence County. Charges already have been filed against several people in that case.
Although the case against Michael Trover, 41, of 609 E. Long Ave., is tied to the Affordable Housing probe, it is not directly connected. The Affordable Housing case involves allegations that public money was used by the nonprofit organization to buy houses at inflated prices. Trover is accused of lying about payments he allegedly made in exchange for government-funded housing renovation contracts.
According to prosecutors, in late April 2008, Trover was asked if — in order to get work in Shenango Township — he had paid an individual known to the grand jury as RR, or anyone else.
He also was asked, “... for any of this work that you did for Lawrence County, the housing authority, again, did you have to pay” RR “after you got paid or at any point because he had awarded you the contract?”
A third question recounted in the indictment reads: “And, again, did you have to pay (an individual known to the grand jury as RR) or anyone else to get that work?”
In all three cases, Trover responded, “I did not.”
Acting U.S. Attorney Robert Cessar, who signed and announced the indictment, noted in it that Trover had been under oath and “knowingly did make the following false material declarations ...”
INVESTIGATION ‘ONGOING’
His office’s spokeswoman, Margaret Philbin, would not describe the work referred to in those questions, nor would she comment on whether or not anyone involved in the Affordable Housing probe had provided information to the U.S. Attorney’s office.
“I can’t say anything beyond what’s in the indictment.”
And, although she classified the investigation as ongoing, Philbin said she could not talk about the possibility of charges being filed against additional people.
According to court documents, the maximum penalties for false declaration before a grand jury — the official name of the charge against Trover — are any or all of the following: imprisonment of up to five years, a fine of up to $250,000, and supervised release of up to three years.