A Pittsburgh man has received a three-year prison sentence and a hefty $100,000 fine for his involvement in bankruptcy and mail fraud offenses surrounding a South Side property. According to the U.S. Attorney's Office, Prasad Margabandhu, a resident of Pittsburgh's Mt. Lebanon suburb, will also undergo three years of supervised release following his incarceration for crimes related to real estate schemes.

United States District Judge Christy Criswell Wiegand handed the sentence to Margabandhu, who was convicted of filing numerous fraudulent bankruptcy petitions through his companies, "RSP Pittsburgh" and "Shane Tracy Enterprises" between March 2019 and June 2022. These filings were a deliberate ploy to stave off creditors and legal actions against a property located at 1925 East Carson Street, Pittsburgh, the details of which were furnished in court documents.

The mail fraud charges stem from a deceitful insurance claim relating to a June 2022 fire that ravaged the East Carson Street property. In his claim, Margabandhu falsified several key pieces of information, resulting in fraudulent interactions with the company insuring the property.

To commence his sentence, Margabandhu is expected to voluntarily surrender to the United States Marshals Service on January 8, 2025. Assistant United States Attorneys Gregory C. Melucci and Shaun E. Sweeney handled the prosecution for the government. The U.S. Attorney's Office has extended commendations to the joint investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service, Federal Bureau of Investigation, and the Office of the United States Trustee which culminated in the successful prosecution of Margabandhu.