Former Charleroi attorney sentenced to prison for mail fraud

Dozens of supporters came to federal court in Pittsburgh Wednesday to support a Charleroi attorney at his sentencing for misappropriating more than $500,000 from a senior citizen over whom he had power of attorney.
However, their presence did not sway U.S. District Judge Arthur J. Schwab, who sentenced Keith A. Bassi, 61, of Fayette City to 33 months behind bars instead of the house arrest sentence his attorney had requested.
Bassi, part owner of the Mon Valley Independent newspaper, was charged last year with stealing money from the victim, an older woman who had dementia and Alzheimer’s disease. The money went to his personal use, prosecutors charged, and to fund the fledgling newspaper, which opened its doors in 2016.
“I’m broken from all of this,” Bassi said in court. “I will serve my sentence willingly and will get through this.”
He apologized to the victim’s family, his family and friends, and acknowledged the damage his action brought to his loved ones, his reputation and himself.
Bassi pleaded guilty in the case in October, admitting to misappropriating $505,131.95 from the victim, identified in court paperwork as Nancy Lutz.
His attorney Stephen S. Stallings said in an era where cases like the one before Schwab have been going on for decades, the Bassi case was “extremely efficient” because of Bassi’s acceptance and cooperation. He also noted that Bassi paid full restitution in advance of his sentencing.
Stallings contended a prison term was an unreasonable punishment for Bassi, asking Schwab instead to sentence him to house arrest, community service and a hefty fine.
Two of the about 50 people who came to the hearing on Bassi’s behalf – his stepdaughter and a retired district judge – asked Schwab to consider Bassi as they know him.
Kiersten Mallon said her stepfather provided her steadfast love following the death of her parents and has taught her to be an independent and strong woman.
She said Bassi going to prison would cause more harm than good to his family.
Samuel Der-Yeghiayan, a retired U.S. District Judge for the Northern District of Illinois, told Schwab that putting Bassi in prison would leave no one to care for his wife, forcing Mallon to leave her job in Chicago and return to care for her.
“He’s not what he’s portrayed to be,” Der-Yeghiayan said. “He told me over and over again he was upset.”
But Assistant U.S. Attorney Gregory Melucci argued that Bassi broke the unique bond with Lutz, moving funds from her account after becoming her power of attorney. It wasn’t a single lapse of judgment, Melucci said, it was multiple thefts, multiple times over a few years.
“This was pure opportunity,” Melucci said, contending Bassi preyed on a vulnerable woman who had no immediate family and no relatives close enough to watch over her and her accounts.
“And he knew that,” Melucci said.
While Melucci said he was glad to hear Bassi was remorseful and cooperative once he was caught, he questioned where Bassi’s remorse was as he moved money from Lutz’s accounts to his own.
“This was disgraceful, shameful and selfish conduct,” Melucci said, adding if Bassi weren’t approached by federal investigators, the misappropriation of funds may have continued. “I ask you, your honor, to become her voice.”
Schwab agreed with Melucci, saying Bassi’s activities were not just a one-time act. He added that putting Bassi on house arrest would mean someone in a professional job would receive less of a sentence than a person who does not have one.
Bassi must voluntarily report to a federal prison no later than May 13, and Schwab said he would recommend Bassi be incarcerated at the federal prison in Morgantown, West Virginia.
Bassi is to also pay a fine of $100,000 to the U.S. District Court and upon release from prison, undergo three years on supervised release.