Suspended Charleroi attorney allegedly diverted disabled woman’s funds to Mon Valley newspaper
A suspended Charleroi attorney and partner in the Mon Valley Independent newspaper was charged with mail fraud for allegedly misappropriating funds from a mentally disabled person, and funneling some of those funds into the newspaper.
In a filing on Monday, Keith A. Bassi, 61, was accused of misappropriating more than $500,000 from a person identified in court documents only as 鈥淣.J.L.鈥� The filing that N.J.L. appointed Bassi the 鈥渢rue and lawful attorney, agent and guardian鈥� over her estate.
Bassi, according to the filing, had power of attorney over N.J.L., who was diagnosed with dementia and Alzheimer蘑菇视频 disease in 2012.
Between June 2013 and October 2016, federal prosecutors alleged he misappropriated the alleged victim蘑菇视频 funds, using a total of $110,000 to fund Mid-Mon Valley Publishing, the parent company of the start-up newspaper.
Prosecutors alleged he used $50,000 of N.J.L.蘑菇视频 money as the 鈥渋nitial opening deposit鈥� for the business account in February 2016. Between July and August 2016, authorities alleged Bassi misappropriated another $60,000 in funds into business and payroll accounts to operate the Mon Valley Independent.
Bassi is one of the newspaper蘑菇视频 four owners.
The filing alleged Bassi also took assets for his personal use by:
n Misappropriating $74,876.26 in assets from N.J.L.蘑菇视频 Janney Montgomery Scott account to his personal checking account between November 2013 and May 2014.
n Misappropriating another $136,473.04 in assets into his personal savings account.
n Creating a Money Market account funded by $72,429.61 of N.J.L.蘑菇视频 assets
n Opening a life insurance policy, and paying into it with the alleged victim蘑菇视频 assets; then requesting a $163,086.32 payoff deposited into his Money Market account.
The alleged victim has been living in a personal care home since May 2012 and was placed in the dementia unit of the care facility in 2015 due to deteriorating mental state, according to the filing.
The filing requests Bassi be ordered to forfeit $235,515.93 from a Money Market account. It also requests he be ordered to pay $269,616.02.
A bill of information filed by acting Assistant U.S. Attorney Gregory C. Melucci indicated that Bassi could face up to 20 years in prison and a fine. Bassi, formerly a partner in Bassi, Vreeland and Associates in Charleroi, is not in custody, according to court documents.
Margaret Philbin, spokeswoman for the U.S. Attorney蘑菇视频 office in Western Pennsylvania, said that the filing聽an information generally indicates a defendant 鈥渋ntends to waive indictment by a grand jury and plead guilty to the charges in the information.鈥�
She said there has been no date set for entry of a guilty plea.
In advance of the federal filing, the state Supreme Court suspended Bassi蘑菇视频 law license in August. Documents filed as part of that indicated Bassi intended to make full restitution in the case and enter a guilty plea.
No plea has yet been entered in the case, and Bassi蘑菇视频 suspension took effect earlier this month.
In an article published after the state蘑菇视频聽Office of Disciplinary Counsel issued the suspension notice, the Mon Valley Independent indicated Bassi retired from the practice of law in August to 鈥渆xplore other business opportunities, including remaining focused with the newspaper.鈥�
According to the Department of State, Mid-Mon Valley Publishing Company, LLC was incorporated in November 2015. The newspaper published its first edition in May 2016.
Mon Valley Independent managing editor Jeff Oliver and Bassi蘑菇视频 attorney, Stephen S. Stallings, did not return calls seeking comment.