PITTSBURGH, PA — A Pittsburgh, Pennsylvania resident has been indicted by a federal grand jury this week on charges including bankruptcy fraud, mail fraud, and conspiracy to maliciously destroy property by fire, according to United States Attorney Eric G. Olshan.
The four-count indictment names Prasad Margabandhu, 47, as the sole defendant. It is alleged that from March 2019 to June 2022, Margabandhu defrauded the bankruptcy court by filing multiple bankruptcy petitions in the names of companies he controlled — “RSP Pittsburgh” and “Shane Tracy Enterprises.” This was reportedly done to delay creditors, such as the mortgage holder and taxing bodies, from executing judgments against a property located at 1925 East Carson Street.
In June 2022, Margabandhu was also accused of conspiring with at least one other person to set fire to the property for the benefit of an insurance policy. Furthermore, in August 2023, it is claimed that Margabandhu committed mail fraud in furtherance of this scheme.
If convicted, the charges carry substantial penalties. The bankruptcy fraud count could result in up to five years in prison and a fine of up to $250,000. The mail fraud count carries a maximum sentence of 20 years imprisonment and a fine of up to $250,000. The counts related to property destruction by fire carry a minimum sentence of five years and up to 20 years in prison, along with fines totaling up to $500,000. The actual sentence would be determined based on the seriousness of the offenses and any prior criminal history of the defendant.
Assistant United States Attorneys Gregory C. Melucci and Shaun E. Sweeney are prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service, Federal Bureau of Investigation, and Office of the United States Trustee led the investigation resulting in this indictment.
As we continue to follow this story, it is important to remember that an indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law. As more information becomes available, we will provide updates on this ongoing case.
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