Pittsburgh Review

A resident of Pittsburgh, Pennsylvania, has pleaded guilty in federal court to charges of bankruptcy fraud and mail fraud, United States Attorney Eric G. Olshan announced today.

Prasad Margabandhu, 48, entered his plea to two counts before United States District Judge Christy Criswell Wiegand.

In connection with the bankruptcy fraud charge, the court was informed that from March 2019 to June 2022, Margabandhu engaged in a scheme to defraud the bankruptcy court by filing multiple bankruptcy petitions in the names of companies he controlled called “RSP Pittsburgh” and “Shane Tracy Enterprises.” These filings were made solely to delay efforts by creditors such as the mortgage holder and taxing bodies from executing judgments against a property at 1925 East Carson Street in Pittsburgh.

Regarding the mail fraud charge, Margabandhu admitted that his insurance claim related to a June 2022 fire that destroyed the 1925 East Carson Street property was fraudulent. Specifically, he acknowledged making several materially false statements to the company that insured the property.

Judge Wiegand scheduled sentencing for January 14, 2025. The law provides for a total sentence of up to 25 years in prison and a fine of up to $500,000 or both. Under federal Sentencing Guidelines, the actual sentence will be 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 this case on behalf of the government.

The Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service; Federal Bureau of Investigation; and Office of the United States Trustee conducted the investigation leading to Margabandhu's prosecution.