Pittsburgh man Prasad Margabandhu, sentenced for bankruptcy and mail fraud

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A resident of Pittsburgh, Pennsylvania, was sentenced December 12, in federal court to 36 months of incarceration, a $100,000 fine, and three years of supervised release on his conviction of bankruptcy fraud and mail fraud.

The announcement was made by United States Attorney Eric G. Olshan after United States District Judge Christy Criswell Wiegand imposed the sentence on Prasad Margabandhu, of Pittsburgh’s Mt. Lebanon suburb.

A press release from the US Attorney’s Office quoted from information presented to the Court which said that from March 2019 to June 2022, Margabandhu engaged in a scheme to defraud the bankruptcy court by filing multiple bankruptcy petitions.

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He filed the petitions in the names of companies he controlled called “RSP Pittsburgh” and “Shane Tracy Enterprises” solely to delay efforts by creditors such as the mortgage holder and taxing bodies to execute on judgments against a property at 1925 East Carson Street in Pittsburgh, the court information said.

With respect to the charge of mail fraud, Margabandhu admitted that his insurance claim relating to a June 2022 fire that destroyed the East Carson Street property was fraudulent. In particular, Margabandhu admitted that he had made several materially false statements to the company that insured the property.

Margabandhu has been ordered to voluntarily surrender to the United States Marshals Service on January 8, 2025, to begin serving his sentence.