Feds: Defendant forged 13 character letters submitted as part of his sentencing in pandemic fraud case

As far as character letters go, Randy Frasinelli submitted the best.

They came from corporate executives, nonprofit groups and an Ivy league university.

There’s one from the bishop of the Diocese of Pittsburgh. And another from Leadership Pittsburgh.

There’s even one from former Allegheny County Executive Jim Roddey. Well, it was supposed to be from him. But, if it was, Roddey spelled his own name wrong — twice.

According to the federal government, all of the letters are fake.

Frasinelli, 66, of Scott, pleaded guilty to bank fraud and money laundering in federal court in August after investigators said that he fraudulently obtained $3.8 million in covid-19 Paycheck Protection Program loans during the pandemic. They said he used the money to buy artwork, luxury vehicles and firearms.

Among the items he purchased — an East African safari, a 2008 Ford Mustang Shelby, a 2014 Mercedes Benz GL5, a 2015 BMW 6 Series, a 2015 Mercedes Benz M Class, a 2020 Land Rover Defender and a 2011 Porsche Panamera.

In its case, the government laid out a complex scheme through which Frasinelli applied for the loans in the names of four separate companies and then submitted falsified tax records and payroll records.

Although he was already facing federal charges — and was out on bond — prosecutors said, Frasinelli applied for another fraudulent loan a month after his arrest seeking another half-million dollars.

Now, the U.S. Attorney’s office is accusing him of falsifying his own character letters to be used to mitigate his sentence. He is scheduled to be sentenced on Wednesday by U.S. District Judge W. Scott Hardy.

Whether the sentencing will occur, however, is up in the air. Frasinelli’s defense attorney — the third he’s had in his federal case — on Saturday filed a motion to withdraw from representing him.

“Counsel has a duty to do no harm to her client. Counsel also has a duty to the court,” wrote attorney Rachael Santoriella. “Counsel is in an untenable situation and as such is unable to ethically remain as Mr. Frasinelli’s counsel.”

The judge is expected to have a hearing on the issue Wednesday.

Assistant U.S. Attorney Jeffery Bengel wrote in a filing that the hearing should not be delayed. But he also said that Frasinelli should no longer be subject to the advisory guideline range listed as part of his plea agreement, which called for a federal prison term of 63 to 78 months.

That penalty represents a reduction because Frasinelli pleaded guilty. However, Bengel now says that federal sentencing guidelines make it clear that defendants who obstruct justice should not get any reduction in sentence for acceptance of responsibility.

“And there can be no doubt that Frasinelli’s conduct—which involved ‘providing materially false information to a judge’ —was obstructive,” Bengel wrote.

He suggested that Frasinelli’s new sentencing guideline range should be 78 to 97 months, and that at the time he is sentenced, the defendant should be immediately taken into custody.

“Since the summer of 2020, Frasinelli has been unwaveringly deceptive — toward the financial institutions that loaned him $3.8 million; toward the federal law enforcement agencies that investigated his fraud; toward his first attorney, who negotiated with the government on his behalf; and toward his third attorney, who is arguing his case at sentencing. Now, Frasinelli has attempted to deceive this court into giving him a more lenient sentence than his offenses deserve,” Bengel wrote. “At every turn, Frasinelli’s conduct has betrayed a complete lack of respect for the law, just as Frasinelli felt entitled to $3.8 million of pandemic-relief money, he evidently feels entitled to escape the consequences of his crimes. “

Bengel wrote in his filing that investigators have confirmed that 13 of the 14 character letters submitted on Frasinelli’s behalf are fraudulent. As for the 14th letter, the prosecutor said, investigators have been unable to reach the purported author in Mexico.

“The remaining 13 letters purport to have been drafted by people in politics, finance, business, technology and charitable organizations, and praise Frasinelli highly for his professional skill, generosity and sincerity,” Bengel wrote. “As the government will prove at sentencing, those letters are forgeries.”

Santoriella said she could not comment.

However, as part of her court filings on Saturday, she also filed a motion to withdraw the character letters.

In her sentencing memo filed before the alleged forged letters came to light, the defense attorney told the court that her client has been diagnosed with bipolar disorder and manic compulsive behavior and that those conditions suggest he should receive a lesser sentence.

“Mr. Frasinelli will tell you that despite the public shame and humiliation that the events that gave rise to this indictment have caused him, he is thankful that this has also brought insight to his mental health and allow(ed) him to start on a journey to recovery,” Santoriella wrote. “His current awareness that he has and had a significant mental health disorder, which requires his attention and assistance to manage, has changed his daily life.”

She continued: “He understands now why he made certain decisions that he did. He will tell you that sometimes he will do things and not really be able to stop himself, although knowing it might not be the best road to travel.

“He has always done things in a very big way.”

In Santoriella’s sentencing memorandum, she also wrote that Frasinelli earned a doctorate from Carnegie Mellon University in global affairs.

A spokesperson for CMU said they have no record of him ever attending school there.