Prasad Margabandhu, Bankruptcy and Mail Fraud, Pennsylvania 2024

A Pittsburgh man has been sentenced to three years of prison and a $100,000 fine for his role in a scheme to defraud the bankruptcy court.

Prasad Margabandhu, a resident of Pittsburgh’s Mt. Lebanon suburb, was sentenced on [undisclosed] in federal court for his conviction of bankruptcy fraud and mail fraud.

According to the United States Attorney Eric G. Olshan, 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’ 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.

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.

Assistant United States Attorneys Gregory C. Melucci and Shaun E. Sweeney prosecuted this case on behalf of the government.

United States Attorney Olshan commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service, Federal Bureau of Investigation, and Office of the United States Trustee for the investigation leading to the successful prosecution of Margabandhu.

Mandatory facts:

Defendant: Prasad Margabandhu
Criminal charges: Bankruptcy fraud and mail fraud
City and state: Pittsburgh, Pennsylvania
Exact date: [undisclosed] in federal court
Sentence: 36 months of incarceration, a $100,000 fine, and three years of supervised release
Dollar amounts: $100,000 fine

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