Pennsylvania Man Pleads Guilty to Mortgage Fraud

Robert Ratkovich of New Castle, Pa., pleaded guilty before Senior U.S. District Judge Gustave Diamond in federal court to fraud and money laundering charges connected to his scheme to defraud a bank and affordable housing entity. The board of directors of Affordable Housing of Lawrence County hired Ratkovich as a consultant to advise the board of which properties that it should purchase and at what price, according to Mary Beth Buchanan, U.S. attorney for the Western District of Pennsylvania. Rather than do a diligent search, Ratkovich advised the board to purchase seven properties that were all owned or associated with an individual known to the U.S. attorney. To purchase the properties, Affordable Housing of Lawrence County received a loan from First Commonwealth bank to finance the purchase. Ratkovich and others allegedly made misrepresentations to First Commonwealth Bank regarding the financial status of Affordable Housing of Lawrence County and submitted fraudulently inflated appraisals. Judge Diamond scheduled sentencing for Oct. 28.