Northern District of Ohio
Press releases recorded for this federal judicial district.
Jury Convicts Euclid Man on Drug Trafficking and Firearm ChargesRead the Press Release
CLEVELAND – Nicholas D. Geer, 26, of Euclid, Ohio, was found guilty on all counts by a jury after a three-day trial before U.S. District Judge J. Philip Calabrese in Cleveland yesterday. Geer was convicted of seven counts of possession with intent to distribute various drugs and two firearms charges. Specifically, Geer was found guilty of possession with intent to distribute fentanyl, acetyl fentanyl, fluorofentanyl, heroin, cocaine and cocaine base and for being a felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and evidence presented in court a search warrant was executed at a house Geer was staying at in Cleveland Heights. During the search, agents seized various quantities of drugs and a loaded .40 caliber handgun in the kitchen of the residence. Geer was discovered hiding in a closet in the basement. Law enforcement had previously conducted two controlled drug purchases from Geer, one at that residence. Geer is prohibited under federal law from possessing a firearm due to previous felony convictions.
The investigation was conducted by the Drug Enforcement Administration (DEA), the Cleveland Heights Police Department, and the Euclid Police Department. This case is being prosecuted by Assistant United States Attorneys Vanessa Healy and Robert Kolansky.
Cleveland Man Sentenced in Drug Trafficking and Money Laundering ConspiracyRead the Press Release
AKRON – Devonn Fair, 31, of Cleveland, Ohio, was sentenced on Thursday, June 1, 2023, to 420 months or 35 years in prison by U.S. District Judge John R. Adams after he pleaded guilty to conspiracy to distribute and possession with intent to distribute controlled substances, possession with intent to distribute fentanyl, conspiracy to launder monetary instruments, money laundering, and being a felon in possession of a firearm and ammunition.
According to court documents, Fair was one of the leaders of a large-scale fentanyl trafficking organization that operated on the east side of Cleveland from September of 2019 to February of 2022. The Fair drug trafficking organization distributed fentanyl at several residences throughout the east side of Cleveland which drew customers from as far away as Medina, Wayne, and Lorain Counties. Fair and his organization profited from their crimes and laundered those profits with the purchase of expensive clothing, jewelry, and vehicles. In addition, Fair was prohibited under federal law from possessing a firearm due to previous felony convictions.
Fair was ordered to forfeit the unlawful proceeds of his crimes which included jewelry, $68,922 in U.S. Currency, and three vehicles.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation’s Cartel, Gang, Narcotics, and Laundering Task Force (CGNL), and the Internal Revenue Service Criminal Investigation Division (IRS-CID) with assistance from the Cleveland Division of Police, the Cuyahoga County Sheriff’s Office, the Ohio Investigative Unit, the Ohio State Highway Patrol, the Cleveland Heights Police Department, the Southeast Area Law Enforcement Task Force
(SEALE), the ATF, the U.S. Marshal’s Service, the DEA, and the Cuyahoga County Regional Forensic Science Laboratory. This case was prosecuted as part of the Organized Crime Drug Enforcement Task Force (OCDETF) national program.This case was prosecuted by Assistant United States Attorneys James Lewis and Joseph Dangelo.
Willoughby Hills Man Sentenced for His Part in $7 Million COVID-19 Relief Fraud Scheme FraudRead the Press Release
CLEVELAND – Aydin Kalantarov, 38, of Willoughby Hills, Ohio, was sentenced yesterday to 33 months in prison by U.S. District Judge Pamela A. Barker, after he pleaded guilty to defrauding the Small Business Administration (“SBA”) of approximately $1.2 million in Economic Injury Disaster Loan (“EIDL”) program under Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Kalantarov was also sentenced to 3 years of supervised release, a $200 special assessment, and agreed to pay up to $1.2 million in restitution.
According to court documents, from May 2020 through October 2020, Kalantarov, along with his two brothers, Zaur Kalantarli and Ali Kalantarli, conspired to defraud the SBA of nearly $7 million in EIDL loans. As part of the scheme the brothers created 70 fictious Ohio corporations with agriculture sounding names, such as “Ohio Almonds and Peanuts” and “Ohio Organic Carrots”.
Once the fictitious corporations were created, the brothers submitted fraudulent EIDL loan applications to the SBA claiming that their business was adversely affected by the pandemic. The SBA funded 47 of the applications for a total of approximately $7 million. Kalantarov personally received $1.2 million in fraud loan proceeds. He used most of his funds to purchase a house in
California.Zaur Kalantarli and Ali Kalantarli remain at large.
The investigation was conducted by the U.S. Treasury Inspector General for Tax Administration (“TIGTA”), the Federal Bureau of Investigation (“FBI”), Cleveland, the IRS Criminal Investigation (“IRS-CI”), the U.S. Department of Agriculture, Office of Inspector General (“USDA-OIG), and the Small Business Administration, Office of Inspector General (“SBAOIG”). This case was prosecuted by Assistant U.S. Attorney Brad J. Beeson.
Jury Convicts Business Owner in Healthcare Fraud and Charitable Foundation SchemeRead the Press Release
TOLEDO - First Assistant United States Attorney Michelle M. Baeppler announced that a federal jury convicted Kevin A. Clay, age 39, of Perrysburg, Ohio of conspiracy, healthcare fraud, and making a false statement on an application for charitable tax-exempt status with the IRS on Wednesday, May 24, in Toledo, Ohio following a 4-day trial before Judge Jack Zouhary.
According to court documents and evidence presented at trial, Kevin A. Clay was the co-owner of Theramedical, LLC, a pharmaceutical marketing company specializing in compounded pain and scar cream. The evidence showed that Clay and Theramedical recruited and paid individuals to obtain prescriptions for pain and scar cream, some of which cost approximately $15,000 for a single prescription. The prescriptions were submitted to a Cleveland-area pharmacy, which filled the prescription and billed insurance companies. Members of the scheme concealed the fact that patients were paid to get the prescriptions, and that the prescriptions were often medically unnecessary. In less than two years, Theramedical generated insurance billings of approximately $17 million from the fraudulent scheme. Clay was also convicted of making a false application for tax-exempt status for the Clay Foundation. In his application to the IRS, Clay claimed the foundation was a public charity, however, it was almost entirely funded by fraud proceeds from Theramedical, not the public. Clay conducted little or no fundraising, awarded virtually no scholarships, and purchased gold and silver in his own name with foundation funds.
This case was investigated by the Federal Bureau of Investigation in Toledo, Ohio, and the Internal Revenue Service–Criminal Investigations in Cleveland, Ohio, the Ohio Attorney General’s Medicaid Fraud Control Unit, and the Ohio State Medical Board. The case was prosecuted by Assistant U.S. Attorneys Jody L. King and Gene Crawford.
Former Chief Operating Office of Summit Pain Specialists Sentenced to Prison for Making and Subscribing False Tax ReturnsRead the Press Release
CLEVELAND – Richard Gould, 67, of Strongsville, Ohio, was sentenced on Tuesday, May 23, 2023, to seven days in prison by U.S. District Judge J. Philip Calabrese after Gould pleaded guilty to a two-count indictment that charged him with making and subscribing false tax returns.
According to court documents, during the tax years of 2014 to 2016, Gould was employed as Chief Operating Officer (“COO”) of Summit Pain Specialists (“SPS”), a pain management clinic. During his time at the pain clinic, as COO for SPS, Gould directed employees to issue checks, direct deposits, and bank transfers directly to him to ensure he was treated as an independent contractor rather than as an employee. Gould prepared the joint individual federal income tax returns that he and his wife electronically filed with the IRS for 2014 and 2015 The IRS determined the tax returns to be fraudulent because Gould listed himself as unemployed and did not report any of his taxable income during those years SPS closed in 2016 due to allegations of sexual assault and medical misconduct by its doctors.
Gould failed to report $469,640.56 of income for tax years 2014 and 2015, resulting in $184,195 in additional tax owed to the IRS.
This case was investigated by IRS Criminal Investigations (CI) and was prosecuted by Assistant U.S. Attorney Brian M. McDonough.Niles Physician Sentenced to 6 Years in Prison for Illegally Prescribing Controlled Substances and Healthcare FraudRead the Press Release
CLEVELAND – Jeffrey Sutton, 65, of Niles, Ohio, was sentenced today to 72 months in prison by U.S. District Judge Christopher A. Boyko, after he pleaded guilty to illegally prescribing patients opioids and other controlled substances, illegally distributing controlled substances and healthcare fraud. Sutton was also sentenced to 3 years of supervised release, a $5,200 special assessment, a $20,000 fine, and restitution of $148,870.79.
According to court documents, from January 2015 through January 2022, Sutton knowingly prescribed medically unnecessary controlled substances to patients outside of the usual course of professional practice and without legitimate medical purpose. In doing so, Sutton fraudulently billed health care benefit programs for office visits and the controlled substances illegally dispensed.
Sutton also admitted to engaging in sexual acts with patients to whom he directly prescribed controlled substances, including during office visits. He also admitted to delivering dozens of oxycodone pills to the home of one of his patients with whom he was engaged in a relationship, outside the course of treatment and without a valid prescription.
The investigation was conducted by the Cleveland offices of the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), and the Department of Health and Human Services - Office of the Inspector General (HHS-OIG), and by the State of Ohio Board of Pharmacy. This case was prosecuted by Assistant U.S. Attorney Elliot Morrison.
U.S. Law Enforcement Disrupts Networks Used to Transfer Fraud Proceeds, Taking over 4,000 Actions in Fifth CampaignRead the Press Release
WASHINGTON – The Department of Justice, FBI, U.S. Postal Inspection Service, and other federal law enforcement agencies announced today the completion of a three-month campaign that disrupted networks used by foreign fraudsters to obtain fraud proceeds. Multiple law enforcement actions addressed conduct by individuals sometimes referred to as “money mules,” who have been providing critical services to fraudsters by receiving money from fraud victims and forwarding the fraud proceeds to the perpetrators (many of whom are based overseas). Some individuals knew they were facilitating fraud. Others first interacted with fraudsters as victims and may have been unaware that their activity furthered criminal activity.
Over approximately the last three months, law enforcement took over 4,000 actions against individuals responsible for facilitating a range of fraud schemes. These schemes included those that targeted consumers, such as lottery fraud and romance scams, as well as those that targeted businesses or pandemic funds.
The thousands of actions taken by law enforcement—which ranged from criminal prosecutions, to civil actions, to warning letters—were designed to punish those who knowingly assisted fraudsters and to advise those who may have been unknowingly helping fraudsters that their conduct furthered crime. These actions are intended to deter overseas fraudsters from relying on U.S.-based individuals to facilitate schemes, and thereby reduce the harm caused by foreign fraud operations.
This year’s effort marked the fifth U.S. law enforcement campaign disrupting these money transmitting networks. Since the first campaign, during which approximately 400 actions were taken by law enforcement, agencies have collectively taken over 12,000 actions. Investigations have shown that disrupting money transmitting networks has impeded fraudsters’ abilities to receive funds, thereby reducing fraud victimization. These campaigns are part of a global effort to tackle money transmitting networks linked to illegal activity.
“Law enforcement is committed to reducing fraud using every tool at our disposal. Our efforts to disrupt networks used to transfer fraud proceeds, to educate the public about elder fraud, and to prosecute those involved in these schemes have stymied fraudsters,” said Associate Attorney General Vanita Gupta. “This initiative demonstrates what can be achieved through focused efforts and vigorous enforcement.”
“The money mule campaign was an effort to educate the public, disrupt criminal enterprises, and provide feedback to financial institutions who go to great lengths to implement anti-money laundering programs,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI values the partnership of DOJ Consumer Protection Branch, U.S. Postal Inspection Service, and other federal agencies who work together to disrupt criminal enterprises conducting fraud and money laundering schemes.”
“Anyone can be approached to be a money mule, but criminals often target students, those looking for work, and those on dating websites,” said Eric Shen, Inspector in Charge of the Criminal Investigations Group. “When those individuals use the U.S. Mail to send or receive funds from fraudsters, Postal Inspectors are quick to step in and put a stop to money mule activities.”
This year’s effort was coordinated by the Department of Justice’s Consumer Protection Branch, the FBI, and the U.S. Postal Inspection Service, which were joined by Homeland Security Investigations, the Department of Labor Office of Inspector General, and the Small Business Administration Office of Inspector General. Participating agencies collectively served over 4,000 letters warning individuals that their activities are facilitating fraud. These letters outlined the potential consequences for continuing to transmit illegally acquired funds. Participating agencies also filed twelve civil or administrative actions. Additionally, more than 25 individuals were criminally charged for knowingly receiving and forwarding victim funds or otherwise laundering fraud proceeds.
- The U.S. Attorney’s Office for the District Massachusetts charged a defendant for using his accounting and “virtual CFO” business as a front to launder the proceeds of internet fraud schemes. As part of the alleged conspiracy, the defendant created dozens of shell companies and used those shell companies to open business bank accounts in Rhode Island and Massachusetts, through which the defendant laundered the criminal proceeds for his clients in exchange for fees. In total, since 2019, the defendant is alleged to have opened approximately 80 bank accounts (purportedly on behalf of 65 different companies), laundering approximately $35 million.
- The U.S. Attorney’s Office for the Western District of North Carolina charged an individual for facilitating an international, multi-million-dollar tech support fraud. The indictment alleged that the defendant agreed to obtain payment-processing services in his name to process victim payments and laundered the proceeds domestically and internationally to bank accounts located in India, receiving three percent of the revenue in return.
- The U.S. Attorney’s Offices for the Central District of California and the District of Nebraska charged individuals who, despite warnings from law enforcement, continued facilitating fraud. In the Central District of California, an individual was charged for her role in receiving funds from fraud victims, including victims of business email compromises. According to the charges, the defendant opened 11 bank accounts at seven separate financial institutions in furtherance of the scheme. In the District of Nebraska, two individuals were charged for facilitating a lottery fraud scheme, including by receiving cashier’s checks in the mail.
Criminal charges are merely allegations. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
As in past years, participating agencies are working to raise awareness about how fraudsters recruit and use individuals to assist their fraud operations. Federal agencies conducted outreach to the public and industry, and also expanded partnerships with local, state, and foreign law enforcement agencies. The Commodities Futures Trading Commission released a public awareness message about how fraudsters use and recruit people to facilitate romance fraud and “wrong number” text message scams, where fraudsters strike up conversations touting their wealth and success in trading crypto assets, over-the-counter foreign currency, or gold contracts to try and convince consumers to “invest” in crypto assets.
The agencies involved in this effort urge consumers to be on the lookout for signs someone is trying to recruit them to receive and transmit fraud proceeds. Do not agree to receive money or checks mailed to you or sent to your bank account for someone you have met over the phone or online. Do not open a bank or cryptocurrency account at someone else’s direction. Fraudsters will lie to persuade you to help them. They may falsely tell you that they are helping you get a lottery prize, initiate a purported romantic relationship and then tell you that they need money, or pretend to offer you a job, an opportunity to invest in a business venture, or the chance to help in a charitable effort.
For more information on this initiative, please visit www.justice.gov/civil/consumer-protection-branch/money-mule-initiative.
Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).
Information about the Department of Justice’s COVID-19 Fraud Enforcement Task Force is available at https://www.justice.gov/coronavirus.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch.
Jamaican National Sentenced to Prison for Lottery FraudRead the Press Release
CLEVELAND – Javon Jonathan Spencer, 32, of Euclid, Ohio was sentenced yesterday to 18 months in prison by U.S. District Judge Benita Y. Pearson after he pleaded guilty to conspiracy to commit mail fraud and mail fraud. Spencer was also ordered to serve 3 years of supervised release after incarceration and pay a $400 special assessment. Additionally, the court ordered Spencer to pay restitution to his victims in the amount of $267,314.98.
Spencer, a Jamaican National, resided with his wife in Euclid, Ohio. The United States Postal Inspection Service conducted the investigation and found that Spencer was involved in a Jamaican Operations Linked to Telemarketing (“JOLT”) fraud scheme that targeted elderly victims. In the JOLT scheme, scammers contacted the targeted individuals via mail or telephone and informed the victims that they won a lottery or sweepstakes, such as the Publishers Clearinghouse Sweepstakes. However, to claim and receive the money, the victims would need to pay upfront fees or taxes.
This case was investigated by the Postal Inspection Service and prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Joseph P. Dangelo.
Toledo man Sentenced to Prison for Receipt and Distribution of Child PornographyRead the Press Release
TOLEDO – Zachary Ryan Balusik, 41, of Toledo, Ohio, was sentenced on Tuesday, May 16, 2023, to 168 months in prison by U.S. District Judge James R. Knepp, after he pleaded guilty to receipt and distribution of child pornography. Balusik was also sentenced to a lifetime of supervised release, $100 special assessment and ordered to pay restitution of $12,000.
According to court documents, Balusik was identified entering online chat rooms that involved streaming videos depicting the sexual exploitation of children.
On February 23, 2022, a search warrant was executed at Balusik’s residence in Toledo, Ohio where electronic devices were seized and found to contain child pornography. This child pornography depicted prepubescent children. Balusik, who was a supervisory nurse at a local hospital, admitted to investigators that he had been downloading and viewing child pornography for more than ten years.
The investigation was conducted by the Federal Bureau of Investigation in Toledo, Ohio. This case was prosecuted by Assistant U.S. Attorney Tracey Tangeman and Department of Justice Trial Attorney Charles Schmitz.
Two Northeast Ohio Men Sentenced for Armed Carjacking SpreeRead the Press Release
CLEVELAND – Thomas J.D. Williams, 19, of Maple Heights, Ohio, was sentenced on Monday, May 8, 2023, to 15 years in prison by U.S. District Judge James S. Gwin after he pleaded guilty to three counts of carjacking and two counts of possession of a firearm in furtherance of a crime of violence.
Donteze Congress, 19, of Maple Heights, Ohio, was sentenced on Tuesday, May 9, 2023, to 15 years in prison by U.S. District Judge James S. Gwin after he pleaded guilty to three counts of carjacking and two counts of possession of a firearm in furtherance of a crime of violence.
According to court documents, in three separate incidents on August 9, 2022, Congress, Williams, and co-defendant Kenneth Franklin used firearms and threats of violence to steal vehicles. During two of the armed carjacking incidents, court documents say that the defendants, riding together in a vehicle, intentionally crashed their vehicle into the rear of the victim’s vehicle to cause a minor traffic incident. In the third incident, the defendants followed the victim’s vehicle to a shopping center parking lot.
Court documents state that on each occasion, as the victim exited their vehicle, they were confronted by two or three of the carjackers brandishing firearms, threatening violence, and demanding the keys to the vehicle.
Court documents state that later that day, officers with the Solon Police Department, along with assistance from other jurisdictions, located Williams driving in one of the stolen vehicles. Williams was later arrested and found to be in possession of a victim credit card and a loaded pistol.
Co-defendant Kenneth Franklin is scheduled to be sentenced on June 5, 2023.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, Solon Police Department, Cuyahoga Falls Police Department, Streetsboro Police Department, and the Garfield Heights Police Department.
This case was prosecuted by Assistant United States Attorneys Peter E. Daly and Christopher J. Joyce.
Akron Man Sentenced on Drug Trafficking and Firearm ChargesRead the Press Release
CLEVELAND – Alex R. Andrus, 31, of Akron, Ohio, was sentenced on Tuesday, May 9, 2023, to 115 months in prison by U.S. District Judge Dan Aaron Polster after he pleaded guilty to possession with intent to distribute fentanyl and methamphetamine and being a felon in possession of a firearm and ammunition.
According to court documents, during the execution of a search warrant at Andrus’ Akron home on March 8, 2022, Andrus possessed fentanyl and more than 200 pills containing methamphetamine, which he intended to sell to drug customers, as well as a loaded pistol. Andrus is prohibited under federal law from possessing a firearm due to previous felony convictions.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Akron Police Department.
This case was prosecuted by Assistant United States Attorney Peter E. Daly.
Jury Convicts Priest of Sex Trafficking Three Victims in Northern OhioRead the Press Release
TOLEDO - A federal jury in Northern District of Ohio convicted Michael J. Zacharias, a priest, of five counts of sex trafficking. The charges related to three victims, two of whom Zacharias trafficked when they were minors and as adults. The evidence presented to the jury detailed how Zacharias paid the victims to engage in sex acts with him using the victims’ fear of serious harm to compel their compliance.
Specifically, the jury heard evidence of how Zacharias first met the victims when they were young boys, and he was a Seminarian at St. Catherine’s Catholic Parish school in Toledo, Ohio, and how Zacharias began grooming the boys for commercial sex acts, using his position as a priest and teacher to ingratiate himself with the boys and their families as a trusted friend, mentor and spiritual counselor. The defendant overcame the victims’ resistance to his eventual commercial sex overtures by gradually sexualizing conversations and conduct with them. At the same time, the victims were developing serious opiate addictions, using pain medication and, later, heroin. Zacharias waited to propose commercial sex until he knew the victims were so heavily involved in drug abuse that it was impacting their daily lives, physical and mental well-being and ability to maintain a stable school or work life.
The victims’ testimony explained how, in varying degrees, they submitted to Zacharias’ commercial sex solicitations because they feared the psychological harm of losing Zacharias as a father figure and friend, losing their connection to the Church and God, and suffering the painful symptoms of opioid withdrawal that could be alleviated with the money provided by Zacharias to purchase drugs. One victim in particular – the older brother of another victim – also explained how he feared Zacharias would sexually abuse his minor brother and others if he did not continue to comply with the defendant’s commercial sex solicitations.
“This defendant betrayed the victims in the most inhumane way,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “He robbed them of their childhood, their dignity and their faith. He inflicted cruel psychological harm, preying on their fears and forcing them to choose between submitting to commercial sex acts, or incurring the pain of losing a father figure or counselor, suffering withdrawal sickness, and risking sexual abuse of a loved one. The Justice Department will vigorously prosecute human trafficking crimes to hold offenders like Michael Zacharias accountable and bring justice to their victims.”
“This verdict sends a clear message to those who prey upon children by using positions of trust to further their crimes,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “Our office will continue to protect our children by aggressively prosecuting child predators who engage in sex trafficking.”
“The defendant not only abused his victims, but also betrayed the trust placed in him by the congregation and those who dutifully serve parishes across the country,” said Special Agent in Charge Gregory Nelsen of the FBI Cleveland Field Office. “The FBI is committed to finding and investigating child predators, so no other people become victim to deceitful and abhorrent behavior.”
Sentencing has not yet been scheduled. Zacharias faces a fifteen-year mandatory minimum and lifetime maximum sentence. Restitution in this case is mandatory under the law.
Assistant Attorney General Clarke and First Assistant U.S. Attorney Baeppler made the announcement.
The Lima and Toledo Resident Agencies of the FBI Cleveland Field Office investigated the case.
Assistant U.S. Attorney Tracey Tangeman for the Northern District of Ohio and Trial Attorney Lindsey Roberson of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Jury Convicts Priest of Sex Trafficking Three Victims in Northern OhioRead the Press Release
A federal jury in Northern District of Ohio convicted Michael J. Zacharias, a priest, of five counts of sex trafficking. The charges related to three victims, two of whom Zacharias trafficked when they were minors and as adults. The evidence presented to the jury detailed how Zacharias paid the victims to engage in sex acts with him using the victims’ fear of serious harm to compel their compliance.
Specifically, the jury heard evidence of how Zacharias first met the victims when they were young boys, and he was a Seminarian at St. Catherine’s Catholic Parish school in Toledo, Ohio, and how Zacharias began grooming the boys for commercial sex acts, using his position as a priest and teacher to ingratiate himself with the boys and their families as a trusted friend, mentor and spiritual counselor. The defendant overcame the victims’ resistance to his eventual commercial sex overtures by gradually sexualizing conversations and conduct with them. At the same time, the victims were developing serious opiate addictions, using pain medication and, later, heroin. Zacharias waited to propose commercial sex until he knew the victims were so heavily involved in drug abuse that it was impacting their daily lives, physical and mental well-being and ability to maintain a stable school or work life.
The victims’ testimony explained how, in varying degrees, they submitted to Zacharias’ commercial sex solicitations because they feared the psychological harm of losing Zacharias as a father figure and friend, losing their connection to the Church and God, and suffering the painful symptoms of opioid withdrawal that could be alleviated with the money provided by Zacharias to purchase drugs. One victim in particular – the older brother of another victim – also explained how he feared Zacharias would sexually abuse his minor brother and others if he did not continue to comply with the defendant’s commercial sex solicitations.
“This defendant betrayed the victims in the most inhumane way,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “He robbed them of their childhood, their dignity and their faith. He inflicted cruel psychological harm, preying on their fears and forcing them to choose between submitting to commercial sex acts, or incurring the pain of losing a father figure or counselor, suffering withdrawal sickness, and risking sexual abuse of a loved one. The Justice Department will vigorously prosecute human trafficking crimes to hold offenders like Michael Zacharias accountable and bring justice to their victims.”
“This verdict sends a clear message to those who prey upon children by using positions of trust to further their crimes,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “Our office will continue to protect our children by aggressively prosecuting child predators who engage in sex trafficking.”
“The defendant not only abused his victims, but also betrayed the trust placed in him by the congregation and those who dutifully serve parishes across the country,” said Special Agent in Charge Gregory Nelsen of the FBI Cleveland Field Office. “The FBI is committed to finding and investigating child predators, so no other people become victim to deceitful and abhorrent behavior.”
Sentencing has not yet been scheduled. Zacharias faces a fifteen-year mandatory minimum and lifetime maximum sentence. Restitution in this case is mandatory under the law.
Assistant Attorney General Clarke and First Assistant U.S. Attorney Baeppler made the announcement.
The Lima and Toledo Resident Agencies of the FBI Cleveland Field Office investigated the case.
Assistant U.S. Attorney Tracey Tangeman for the Northern District of Ohio and Trial Attorney Lindsey Roberson of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Cleveland Man Convicted of Armed Bank Robbery, Brandishing a Firearm and Felon in Possession of a FirearmRead the Press Release
CLEVELAND - First Assistant United States Attorney Michelle M. Baeppler announced that a federal jury convicted Randall Hines, 32, of armed bank robbery, brandishing a firearm during the bank robbery, and for being a felon in possession of a firearm on May 11, 2023 in Cleveland following a four-day trial before Judge David A. Ruiz.
According to court documents and evidence presented at trial, Hines entered the Huntington Bank in Brooklyn, Ohio dressed in a turtleneck, covid mask, beanie, and hoodie in an attempt to conceal his identity and distinct neck tattoos. However, video surveillance from the bank and a
nearby business captured Hines’ car parked a few blocks from the bank. Hines was arrested three days later and a search of his car revealed, tucked under the bench backseat, the gun Hines’ used in the bank robbery, loaded with ten rounds of ammunition.The jury also was resented with additional evidence obtained from Hines’ cellular telephone which established his movements before and after the bank robbery.
Hines will be sentenced on September 7, 2023 before Judge David A. Ruiz.
This case was investigated by the Federal Bureau of Investigation in Cleveland, Ohio, the Brooklyn, Ohio Police Department, the Parma Police Department and the Orange Police Department. The case is being prosecuted by Assistant U.S. Attorneys Bryson N. Gillard and Aaron P. Howell.
DEA Operation Last Mile Tracks Down Sinaloa and Jalisco Cartel Associates Operating within the United StatesRead the Press Release
DETROIT – More than 3.8 million deadly doses of fentanyl and 201 pounds of methamphetamine were removed from communities in Michigan, Ohio and northern Kentucky during “Operation Last Mile,” a year-long national operation, targeting operatives, associates, and distributors affiliated with the Sinaloa and Jalisco Cartels responsible for the last mile of fentanyl and methamphetamine distribution on our streets and on social media.
DEA’s top operational priority is to defeat the Sinaloa and Jalisco Cartels—the two drug cartels based in Mexico that are responsible for the vast majority of the fentanyl and methamphetamine that is killing Americans. In Operation Last Mile, DEA tracked down distribution networks across the United States that are connected to the Sinaloa and Jalisco Cartels. The Operation shows that the Sinaloa and Jalisco Cartels use violent local street gangs and criminal groups and individuals across the United States to flood American communities with huge amounts of fentanyl and methamphetamine, which drives addiction and violence and kills Americans. It also shows that the Cartels, their members, and their associates use social media applications—like Facebook, Instagram, TikTok, and Snapchat—and encrypted platforms—like WhatsApp, Telegram, Signal, Wire, and Wickr—to coordinate logistics and reach out to victims.
Nationally, Operation Last Mile comprised 1,436 investigations conducted from May 1, 2022 through May 1, 2023, in collaboration with federal, state and local law enforcement partners, and resulted in 3,337 arrests and the seizure of nearly 44 million fentanyl pills, more than 6,500 pounds of fentanyl powder, more than 91,000 pounds of methamphetamine, 8,497 firearms, and more than $100 million.
The fentanyl powder and pill seizures equate to nearly 193 million deadly doses of fentanyl removed from communities across the United States, which have prevented countless potential drug poisoning deaths. Among these investigations, more than 1,100 cases involved social media applications and encrypted communications platforms, including Facebook, Instagram, TikTok, Snapchat, WhatsApp, Telegram, Signal, Wire, and Wickr.
“The Sinaloa and Jalisco Cartels use multi-city distribution networks, violent local street gangs, and individual dealers across the United States to flood American communities with fentanyl and methamphetamine, drive addiction, fuel violence, and kill Americans,” said Administrator Milgram. “What is also alarming—American social media platforms are the means by which they do so. The Cartels use social media and encrypted platforms to run their operations and reach out to victims, and when their product kills Americans, they simply move on to try to victimize the millions of other Americans who are social media users.”
The Detroit Division, responsible for DEA operations in Michigan, Ohio and northern Kentucky, made 16 arrests and seized 20,636 fentanyl pills, 151 pounds of fentanyl powder, $5,809,597 in cash & assets, 201 pounds of methamphetamine and 360 firearms. The fentanyl seizures could provide a
deadly dose to more than 3.8 million people.Operation Last Mile is an example of DEA’s network-based approach to take out Sinaloa and Jalisco Cartel members and associates in the United States and across the globe, stop fentanyl, and save American lives. In April 2023, the DEA and our federal partners announced the indictment of 28 members and associates of the Sinaloa Cartel operating in Mexico, China, and Central America, including the leaders of the Cartel known as the “Chapitos.”
Largest International Operation Against Darknet Trafficking of Fentanyl and Opioids Results in Record Arrests and SeizuresRead the Press Release
WASHINGTON – Today, the Department of Justice, and its Joint Criminal Opioid and Darknet Enforcement (JCODE) team and international partners, announced the results of Operation SpecTor, which included 288 arrests – the most ever for any JCODE operation and nearly double that of the prior operation. Law enforcement also conducted more seizures than any prior operation, including 117 firearms, 850 kilograms of drugs that include 64 kilograms of fentanyl or fentanyl-laced narcotics, and $53.4 million in cash and virtual currencies.
Operation SpecTor was a coordinated international effort spanning three continents to disrupt fentanyl and opioid trafficking on the darknet, or dark web. The operation was conducted across the United States, Europe, and South America, and was a result of the continued partnership between JCODE and foreign law enforcement against the illegal sale of drugs and other illicit goods and services on the darknet. Operation SpecTor builds on the successes of prior years’ operations and takedowns of marketplaces, which result in the seizure of darknet infrastructure providing investigators across the world with investigative leads and evidence. JCODE and Europol’s European Cybercrime Centre (EC3) continue to compile intelligence packages to identify entities of interest. These leads allow U.S. and international law enforcement agencies to identify darknet drug vendors and buyers, resulting in a series of coordinated, but separate, law enforcement investigations, resulting in the statistics announced today.
This year’s law enforcement operation was accompanied by a public awareness campaign called Operation ProtecTor aimed to promote public safety and spread awareness of resources for those struggling with substance abuse and who go through extreme lengths to obtain opioids. JCODE has worked with every FBI field office in the country to facilitate outreach to households that have purchased individual amounts of opioids from the darknet. The interagency efforts are aimed to both identify those who use anonymizing technologies to purchase illicit narcotics and direct them to available resources.
“Operation SpecTor was a coordinated international law enforcement effort, spanning three continents, to disrupt drug trafficking on the dark web and represents the most funds seized and the highest number of arrests in any coordinated international action led by the Justice Department against drug traffickers on the dark web,” said Attorney General Merrick B. Garland. “Our message to criminals on the dark web is this: You can try to hide in the furthest reaches of the internet, but the Justice Department will find you and hold you accountable for your crimes.”
“The availability of dangerous substances like fentanyl on dark net marketplaces is helping to fuel the crisis that has claimed far too many American lives,” said FBI Director Christopher Wray. “That's why we will continue to join forces with our law enforcement partners around the globe to attack this problem together. The FBI is proud to stand with our domestic and foreign partners as we continue to shine that light into the deepest corners of the dark net and hold those accountable who continue to peddle this poison around the world.”
“The Sinaloa and Jalisco drug cartels, and the global networks they operate are killing Americans by sending fentanyl into the United States. Their associates distribute this fentanyl into communities across America by every means possible, including the dark web,” said DEA Administrator Anne Milgram. “The DEA is committed to shutting down the fentanyl supply chain from beginning to end, and we will relentlessly pursue the associates of these cartels wherever they hide, even in the dark corners of the internet.”
“Our coalition of law enforcement authorities across three continents proves that we all do better when we work together,” said Executive Director Catherine De Bolle of Europol. “This operation sends a strong message to criminals on the dark web: international law enforcement has the means and the ability to identify and hold you accountable for your illegal activities, even on the dark web.”
“Collaboration with our law enforcement partners is key to combatting fentanyl and opioid trafficking,” said Chief Jim Lee of the IRS Criminal Investigation (IRS-CI). “Under the JCODE umbrella, law enforcement agencies across the globe have joined forces to take down criminals who use the darknet to buy and sell narcotics. Our team at IRS-CI plays an integral role in these investigations by following the money trail, whether it’s in fiat currency or digital assets on the blockchain.”
“The illicit movement of opioids poses a significant threat to public health and safety – whether by known transnational criminal gang members across international borders or anonymously through darknet spaces,” said Senior Official Performing the Duties of Deputy Director P.J. Lechleitner of Homeland Security Investigations (HSI). “Our HSI special agents, alongside federal and international partners, continue to aggressively investigate, disrupt, and dismantle networks responsible for trafficking dangerous, deadly narcotics and other contraband across global communities we are charged with protecting. We will continue to pursue bad actors engaged in these crimes to ensure they face justice, while protecting victims from these lethal substances.”
“The U.S. Postal Inspection Service leverages our specialized knowledge of the postal system as part of sophisticated dark web investigations such as Operation SpecTor with great results,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service. “We are committed to taking all necessary actions to combat illicit drugs in the mail. And we thank our law enforcement partners for working with us to achieve this; removing dangerous illicit substances from the mail and American communities saves lives.”
“Addressing our nation’s drug overdose crisis and epidemic of substance use disorders is an issue of great concern and remains a top public health priority for the U.S. Food and Drug Administration (FDA),” said Commissioner Robert M. Califf, M.D., of the FDA. “The FDA has undertaken strategic and impactful actions to prevent drug overdoses and reduce deaths and is committed to using all of our cyber-resources to shed light on the darkest corners of illicit medical supply chains for the health and safety of all Americans.”
Operation SpecTor resulted in over 100 federal operations and prosecutions, including:
- On Dec. 1, 2022, Anton Peck, 29, of Boca Raton, Florida, was sentenced to 16 years in prison for conspiring to possess with the intent to distribute controlled substances, including fentanyl, methamphetamine, and heroin. According to court documents, between May 2021 and May 2022, Peck distributed narcotics from various darknet markets using the vendor profile “Syntropy.” After the transactions were carried out using cryptocurrency, Peck and co-conspirators Kevin Fusco and Vincent Banner mailed parcels containing fentanyl, heroin, and methamphetamine to cities around the country using the U.S. Postal Service (USPS). Fusco, 35, of West Palm Beach, Florida, was sentenced to 11 years in prison for conspiring to distribute fentanyl, heroin, and methamphetamine. Banner, 31, of Boynton Beach, Florida, is scheduled to be sentenced on June 8 after pleading guilty to one count of conspiracy to possess with intent to distribute fentanyl, methamphetamine, and heroin. Law enforcement recovered kilogram quantities of fentanyl, cocaine, methamphetamine, and heroin from business and storage locations in West Palm Beach, Boca Raton, and New York City. Peck possessed a list of more than 6,000 customers living across the United States. The DEA, FBI, USPS Office of Inspector General (USPS-OIG), U.S. Postal Inspection Service (USPIS) and the Palm Beach County Sheriff’s Office investigated the case. The U.S. Attorney’s Office for the Southern District of Florida is prosecuting the case.
- On Nov. 18, 2022, a federal grand jury returned an indictment charging Christopher Hampton, 36, of Cerritos, California, with heading an organization that obtained bulk fentanyl, operated labs in California that used high-speed pill presses to create fake pills containing fentanyl and methamphetamine, and sold millions of pills to thousands of customers on the darknet. Hampton was named in an 11-count indictment that charges him with various narcotics and weapons offenses that could result in a sentence of life in prison. According to court documents, he was active on at least nine darknet marketplaces where he typically used the moniker “Narco710.” Hampton allegedly sold nearly $2 million worth of narcotics on two of these darknet marketplaces alone. He was arrested on Nov. 2, 2022, at which time federal law enforcement executed search warrants that led to the discovery and seizure of 450 pounds of suspected narcotics; six pill press machines, some of which were capable of producing thousands of pills per hour; and illegal firearms that included assault rifles and a machine gun. Agents later located a storage unit linked to the drug conspiracy and seized over 80 pounds of pressed fentanyl pills, eight guns, and precursor materials to press additional pills. The FBI JCODE and DEA HIDTA Tactical Diversion Squad investigated the case. The U.S. Attorney’s Office for the Central District of California is prosecuting the case.
- On May 12, 2022, a federal grand jury returned a two-count indictment charging Holly Adams, 31, and Devlin Hosner, 33, of Indio, California, with conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine, and with conspiracy to launder money. According to court documents, Adams and Hosner operated the vendor accounts “igogrrawwr” and “its4real” on the darknet marketplaces ToRReZ and Darkode, respectively, through which they sold tens of thousands of counterfeit oxycodone pills containing fentanyl in exchange for cryptocurrency. Adams and Hosner shipped these fentanyl pills to buyers throughout the United States, using the USPS, UPS, and other means of delivery. In the course of their conspiracy, Adams and Hosner finalized over 1,100 transactions of narcotics and other contraband and received more than $800,000 in cryptocurrency. Federal law enforcement officers executed a search warrant at a hotel in Riverside county where Adams and Hosner were residing and recovered more than 10,000 counterfeit oxycodone pills as well as approximately 60 grams of methamphetamine. The IRS-CI, HSI, FBI, USPIS, and USPS-OIG investigated the case. The U.S. Attorney’s Office for the Eastern District of California is prosecuting the case.
Operation SpecTor was a collaborative initiative across JCODE members, including the Department of Justice, FBI, DEA, USPIS, HSI, IRS-CI, ATF, Naval Criminal Investigative Service (NCIS), and the FDA’s Office of Criminal Investigations. This operation was aided by non-operational supporting participation from the Financial Crimes Enforcement Network (FinCEN) and U.S. Customs and Border Protection (CBP). Local, state, and other federal agencies also contributed to Operation SpecTor investigations through task force participation and regional partnerships. The investigations leading to Operation SpecTor were significantly aided by support and coordination by the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF); multi-agency Special Operations Division; the Criminal Division’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section’s Digital Currency Initiative, Narcotic and Dangerous Drug Section, and Fraud Section; the Justice Department’s Office of International Affairs; Europol and its Dark Web team; and international partners. The international partners include Eurojust; Austria’s Federal Criminal Police Office (Bundeskriminalamt); France’s Directorate-General of Customs and Indirect Taxes (Douane); Germany’s Federal Criminal Police Office (Bundeskriminalamt), Central Criminal Investigation Department of Oldenburg (Zentrale KriminaIinspektion Oldenburg), General Prosecutor’s Office in Frankfurt/Main - Cybercrime Center (Generalstaatsanwaltschaft Frankfurt/Main, Zentralstelle zur Bekämpfung der Internetkriminalität), Berlin Police (Polizei Berlin), various police departments (Dienststellen der Länderpolizeien), German Customs Investigation (Zollfahndungsämter); the Netherland’s National Police (Politie); Poland’s Central Cybercrime Bureau (Centralne Biuro Zwalczania Cyberprzestępczości); Brazil’s Civil Police of the State of Piauí (Polícia Civil do Estado do Piauí), Civil Police of the Federal District (Polícia Civil do Distrito Federal), National Secretariat of Public Security - Directorate of Integrated Operations and Intelligence - Cyber Operations Laboratory (Laboratório de Operações Cibernéticas da Diretoria de Operações Integradas e de Inteligência - Secretaria Nacional de Segurança Pública); Switzerland’s Zurich Cantonal Police (Kantonspolizei Zürich) and Public Prosecutor’s Office II of the Canton of Zurich (Staatsanwaltschaft II); and the United Kingdom’s National Crime Agency (NCA) and National Police Chief’s Council (NPCC).
Federal investigations and prosecutions are being conducted in more than 30 federal districts, including the District of Arizona, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the District of Columbia, the District of Delaware, the Southern District of Florida, the Northern District of Georgia, the Southern District of Indiana, the Eastern District of Kentucky, the District of Maryland, the District of Massachusetts, the Eastern District of Michigan, the Western District of Michigan, the Eastern District of Missouri, the Western District of Missouri, the District of Nebraska, the District of Nevada, the District of New Jersey, the Eastern District of New York, the Southern District of New York, the Western District of North Carolina, the Northern District of Ohio, the Southern District of Ohio, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Dakota, the Eastern District of Tennessee, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the District of Vermont, the Eastern District of Virginia, and the Western District of Washington.
The Justice Department established the FBI-led JCODE team to lead and coordinate government efforts to detect, disrupt, and dismantle major criminal enterprises reliant on the darknet for trafficking opioids and other illicit narcotics, along with identifying and dismantling their supply chains.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ohio Man Charged for Attempting to Burn Down a Church that Planned to Host Drag Show EventsRead the Press Release
WASHINGTON – A federal indictment was returned charging an Ohio man with a violation of the Church Arson Prevention Act for using Molotov cocktails against the Community Church of Chesterland, in Chesterland, Ohio, in an attempt to burn the church to the ground. He was also indicted on one count of using fire to commit a federal felony, one count of malicious use of explosive materials and one count of possessing a destructive device.
According to court documents, Aimenn D. Penny, 20, of Alliance, attempted to burn the church to the ground after learning the church was holding multiple drag show events the following weekend. Penny was initially arrested and charged with
federal offenses on March 31.If convicted, Penny faces a maximum penalty of up to 20 years in prison for the violation of the Church Arson Prevention Act. Penny also faces a mandatory minimum of five years and up to 20 years in prison for the malicious use of explosive materials charge and up to 10 years in prison for the possession of a destructive device charge. In addition, if convicted of using fire to commit a federal felony, Penny faces a 10-year mandatory prison sentence that will run consecutively with any other prison term imposed.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio and Special Agent in Charge Gregory Nelsen of the FBI Cleveland Field Office made the announcement.
The FBI Cleveland Field Office is investigating the case. Assistant U.S. Attorneys Brian Deckert and Matthew W. Shepherd for the Northern District of Ohio and Trial Attorneys Jacob Warren and Justin Sher of the National Security Division’s Counterterrorism Section are prosecuting the case with assistance from Trial Attorney Eric Peffley of the Civil Rights Division’s Criminal Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Massillon Man Sentenced to 30 Years in Prison for Kidnapping of 5-Year-Old Child and Possession of Child PornographyRead the Press Release
YOUNGSTOWN – Jonathan L. Stinnett, 37, of Massillon, Ohio, was sentenced on Wednesday, April 19, 2023, to 30 years in prison by U.S. District Judge Benita Y. Pearson after he pleaded guilty to kidnapping a 5-year-old child and possessing child pornography. Once released from prison, Stinnett will be under court supervision for life.
According to court documents, on November 11, 2021, Stinnett, the boyfriend of the child’s babysitter, took the child during an outing with his girlfriend and the child in Massillon, Ohio. Stinnett left Massillon with the child in his vehicle, disabled his cellular phone, and avoided attempts by his girlfriend and law enforcement to contact him.
Court documents state that more than 24 hours later, law enforcement in McLean County, Illinois, received a call reporting a suspicious vehicle parked on a rural road. Sheriff’s deputies responded and found Stinnett and the child asleep in Stinnett’s vehicle. Stinnett was arrested and the child was returned to her family.
During interviews with investigators from the McLean County Sheriff’s Office and the Federal Bureau of Investigation, Stinnett admitted taking the child without her mother’s knowledge or consent. Prior to the kidnapping, Stinnett had purchased a new cellular phone and camping equipment that he planned to use as they traveled.Court documents also show that a search of Stinnett’s vehicle revealed numerous electronic storage devices. One of those devices contained approximately 229 images of child pornography. Stinnett admitted possessing and viewing those images.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, the Jackson Township Police Department, and the McLean County, Illinois, Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Peter E. Daly and Aaron P. Howell.
Former Vice President of Discovery Tours Sentenced to Five Years in Prison for Fraud and Money LaunderingRead the Press Release
CLEVELAND – Joseph A. Cipolletti, 48, of Hudson, Ohio, was sentenced on Thursday, April 20, 2023, to 60 months in prison by U.S. District Judge Pamela A. Barker after he pleaded guilty to an 18-count indictment that charged him with wire fraud, money laundering, bank fraud and false statements under oath in a bankruptcy proceeding.
“This defendant abused his position of trust by embezzling from $550,000 and $1.5 million from his family’s student travel company for his personal use,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Student trips to Washington, D.C. were canceled for dozens of schools across Ohio and more than 5,000 families lost the money they had previously paid for trip fees. Today’s five-year prison sentence reflects his reprehensible conduct.”
“Bilking customers in any line of business is appalling, and more so, as a business executive entrusted to provide memorable educational experiences for children and teens,” said FBI Cleveland Special Agent in Charge Gregory Nelsen. “Today’s sentence reflects the comprehensive investigative work of the FBI, and together with our federal, state, and local partners, highlights our commitment to uncover corrupt business dealings.”
According to court documents, Cipolletti was employed as Vice President of Discovery Tours, Inc., a business that offered educational trips for students to destinations such as Washington, D.C., Chicago, Illinois, New York City, New York, Columbus, Ohio, and Gettysburg, Pennsylvania. Court documents state that as Vice President, Cipolletti managed the organization’s finances, general ledger entries, accounts payable and accounts receivable. Cipolletti also had signature authority on Discovery Tours’ business bank accounts.
Court documents state that from June 2014 to May 2018, Cipolletti, as Vice President, devised a scheme to defraud parents and other student trip purchasers by diverting payments intended for these trips to his own personal use on items such as home renovations and vehicles.
As a result of Cipolletti’s actions and subsequent attempts to cover up the scheme, in May 2018, Discovery Tours abruptly ended operations and filed for bankruptcy.
In addition, on December 10, 2018, in the United States Bankruptcy Court for the Northern District of Ohio, Cipolletti knowingly made statements under oath in and in relation to his organization’s bankruptcy status. Cipolletti claimed that he did not owe his business any money when, in fact, and as he then knew, he had embezzled from his place of business and made false entries in the general ledger.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Brian M. McDonough.
18 Individuals Involved in Drug Trafficking Organization in Wayne County and Cleveland IndictedRead the Press Release
CLEVELAND – Federal, county and local law enforcement officials today announced that 18 individuals were charged for their roles in a drug trafficking conspiracy that involved the distribution of fentanyl in Cleveland and the Wayne County area. Some were arrested during an early morning operation and transported to federal court in Cleveland.
This announcement is made by First Assistant U.S. Attorney Michelle M. Baeppler, DEA Assistant Special Agent in Charge Tom Gergye, and Director Joshua Hunt of the Medway Drug Enforcement Agency.
“While so many of us have been working tirelessly to make our communities a safer and better place to live, the defendants charged in these indictments have been doing otherwise,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Today’s indictments and arrests reflect the resolve of law enforcement at all levels to hold drug traffickers accountable and return our neighborhoods to a better tomorrow.”
“Possession and distribution of illegal narcotics and the illegal possession of firearms will not be tolerated in our communities or by the good citizens who live there,” said DEA Assistant Special Agent in Charge Tom Gergye. “Likewise, the DEA will continue its targeted, exhaustive, and collaborative efforts with our local, state and federal partners to identify and dismantle drug trafficking organizations that bring poison and violence into our neighborhoods.”
“Our unending commitment to this community is to work relentlessly in collaboration with our law enforcement partners at every level, bringing every combined resource to bear with the unified mission to deliver those persons to justice who contribute to this deadly scourge” said Director Joshua Hunt of the Medway Drug Enforcement Agency located in Wayne County, Ohio. “I'm immensely proud of the collective achievements born from this 2-year investigation, while I also remain dedicated to ensuring that this important work continues well into the future.”
The following is a breakdown of the charges:
Charged in a 36-count indictment with conspiracy to possess with the intent to distribute and distribution of controlled substances, distribution of a controlled substance, possession with the intent to distribute a controlled substance and use of a communications facility to facilitate a drug trafficking offense are:Charles Daniels, 45, State of Ohio Custody; Deandre Wilson, 46, Federal Custody; Jason Johnson, 46, State of Ohio Custody; Blaze Cody Mclaughlin, 32, Federal
Custody; Anthony Ray Lies, 40, Rittman, Ohio; Nicholas Knapik, 39, State of Ohio Custody; Jordan Jarvis, 34, State of Ohio Custody; David Stark, 45, State of Ohio Custody; Roger Stark, 44, Wooster, Ohio; Sebastian Yeagley, 32, Wooster, Ohio; Cody Smith, 28, Wooster, Ohio; John Harig, Jr. 43, Wooster, Ohio; Caleb Smith 30, State of Ohio Custody; Elijah Goshen 31, Cleveland, Ohio; Cassandra Vojacek, 40, Perry, Ohio; Chad Anderson, 38, Columbus, Ohio; Blake Nowak, 45, Burton, Ohio.According to the indictments, between as early as on or about October, 1, 2020, and continuing through on or about February 28, 2023, the defendants did knowingly and intentionally conspire with each other to distribute and possess with the intention to distribute a mixture and substance containing fentanyl. Johnson was also charged with being a felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime. The indictment also seeks forfeiture of a firearm and U.S. Currency.
Charles Daniels recruited drug dealers from Wayne County, Ohio, to purchase fentanyl from sources designated by him, including but not limited to Deandre Wilson and Jason Johnson for further distribution throughout the Northern District of Ohio.
Daniels contacted Wilson and Johnson and arranged for them to sell fentanyl to the Wayne County drug dealers at a discounted price per gram. Daniels provided the Wayne County drug dealers with the contact information for Wilson and Johnson for the purpose of obtaining fentanyl for distribution.
Charged in a 2-count indictment with distribution of a controlled substance containing methamphetamine is Markus Ellison of Wooster, Ohio, State of Ohio Custody.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, each defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictments was conducted by the DEA, Medway Drug Enforcement Agency, the Wooster Police Department, the Wayne County Sheriff’s Office, the Ohio State Patrol, Ohio High Intensity Drug Trafficking Area (HIDTA), the Ohio Department of Rehabilitation and Corrections and the Ohio National Guard Intelligence Analysts. This case is being prosecuted by Assistant U.S. Attorney Payum Doroodian.
Former Erie County Deputy Sheriff Pleads Guilty to Using Excessive ForceRead the Press Release
TOLEDO – Today, Adam Bess, 35, pleaded guilty to a felony for depriving an inmate at the Erie County Jail of her constitutional rights by using excessive force. According to court documents, on November 1, 2021, Bess was working as a sergeant at the Erie County Jail. During the booking process of a new arrestee, Bess repeatedly choked her causing her vision to pixelate and have lasting bruising. The inmate can be heard yelling, “He’s about to kill me, he’s about to kill me” during the assault.
Bess faces up to ten years imprisonment and it will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
A sentencing date has not yet been set before United States District Judge Jack Zouhary.
This case was investigated by the FBI Cleveland Division and the Erie County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorneys Michael Freeman and Tracey Tangeman.
Toledo Men Sentenced to Prison for Their Roles in Drug Trafficking ConspiracyRead the Press Release
TOLEDO – Three Toledo men were sentenced yesterday by U.S. District Judge Jack Zouhary after they were convicted at trial in November 2022 of various drug trafficking offenses. They were the last of 26 defendants charged in a 2020 indictment.
Antuan Wynn, who has a previous federal drug conspiracy conviction in the Northern District of Ohio, was sentenced to 224 months imprisonment; Marquise Figures was sentenced to 70 months imprisonment; and Christopher Simpson, who has a previous federal felon in possession of a firearm conviction in the Northern District of Ohio and was on supervised release at the time of this indictment, was sentenced to 300 months.
According to court documents, Wynn, Figures, Simpson, and other co-defendants conspired to traffic large amounts of cocaine, cocaine base, and fentanyl in the Toledo area. Court documents indicate that Wynn supplied substantial amounts of cocaine to another co-defendant, Anthony Duff, who then distributed ounce quantities to various distributors including Figures. Additionally, court documents state Simpson supplied fentanyl to Jackie Green and others.
Court records also show that members of the conspiracy used multiple cell phones that were obtained under other names, fictious names, or in no name at all. They also used code words to conceal their activity and used multiple residences in the Toledo area to store, break down, package, and distribute their narcotics and proceeds.
On December 16, 2020, federal, state, county, and local law enforcement authorities participated in an extensive takedown operation which included arrests and search warrants of those involved in the drug trafficking conspiracy. This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF)operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the FBI Safe Streets Task Force, Toledo Metro Drug Task Force, and the Northwest Ohio Interdiction Task Force.
The FBI Safe Streets is comprised of the FBI, Toledo Police Department, Sylvania Township Police Department, and the Oregon Police Department. The Toledo Metro Drug Task Force is comprised of the FBI, Toledo Police Department, Bureau of Criminal Investigations, Lucas County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The Northwest Ohio Interdiction Task Force is comprised of the FBI, Toledo Police Department, and the Lucas and Wood County Sheriff’s Offices. This case was prosecuted by Assistant U.S. Attorneys Alissa M. Sterling and Robert N. Melching.
Norwalk Business Owners Sentenced to Prison for Fraud SchemeRead the Press Release
TOLEDO – Gerald E. Reichert, age 65, and Adam M. Reichert, age 36, were sentenced by Judge Jack Zouhary of the Northern District of Ohio, Western Division, on April 6, 2023, following their guilty pleas to Conspiracy to Commit Major Fraud Against the United States, Highway Project Fraud, and Wire Fraud. Gerald E. Reichert was sentenced to serve 16 months in prison, and to pay a fine of $90,000. Adam M. Reichert was sentenced to serve 8 months in prison, and to pay a fine of $70,000. Both men were ordered to pay total restitution of $579,014.
Gerald (father) and Adam (son) were owners and operators of Oglesby Construction, Inc., a pavement marking contractor based in Norwalk, Ohio, that performed paint-striping services for the States of Ohio, Kentucky, and West Virginia. The men participated in a scheme to defraud state and federal governments by contracting with state authorities to perform paint-striping of roads using a certain amount of paint and glass beads, but then under-applying those materials and falsely informing states that they had complied with contractual requirements. The scheme participants misled the states by either manipulating daily excel spreadsheet reports submitted to the states, or by attaching physical manipulation devices to application trucks including applicators and scales.
The case was investigated by the United States Department of Transportation, Office of Inspector General, and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Robert N. Melching, Jody L. King, Suzana K. Koch, and Gene Crawford.
Man Charged with Arson and Possession of a Destructive DeviceRead the Press Release
WASHINGTON – An Ohio man was arrested this morning and charged with one count of malicious use of explosive materials and one count of possessing a destructive device.
According to court documents, Aimenn D. Penny, 20, of Alliance, on March 25, used Molotov cocktails against the Community Church of Chesterland (CCC), Chesterland, Ohio, in an attempt to burn the church to the ground.
“As alleged in the charging documents, the defendant used an explosive device to cause harm to a church he found objectionable,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “It is the solemn duty of the Department of Justice to safeguard the right of all Americans to free expression, and I commend the work of law enforcement in this matter.”
“Violence and destruction are never an acceptable way to express a disagreement with a particular viewpoint,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “While, as Americans, we enjoy the right to disagree, doing so peacefully is the only appropriate option. The United States Attorney’s Office for the Northern District of Ohio remains committed to protecting the rights of all citizens to express their viewpoints peacefully.”
“The FBI Cleveland Joint Terrorism Task Force worked alongside the Chester Township Police Department in the matter surrounding a Molotov cocktail used against the Community Church of Chesterland on March 25. The FBI leveraged its task force and its specialized resources to identify, locate, and subsequently arrest the subject earlier today,” said Special Agent in Charge Gregory Nelsen of the FBI Cleveland Field Office. “We thank the collaborative work and strong partnership of the Chester Township Police and the Geauga County local authorities who assisted.”
If convicted, Penny faces a mandatory minimum of five years and up to 20 years in prison for the malicious use of explosive materials charge and up to 10 years in prison for the possession of a destructive device charge.
The FBI Cleveland Field Office is investigating the case.
Assistant U.S. Attorney Brian Deckert for the Northern District of Ohio and Trial Attorneys Jacob Warren and Justin Sher of the National Security Division’s Counterterrorism Section are prosecuting the case.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Charged with Arson and Possession of a Destructive DeviceRead the Press Release
An Ohio man was arrested this morning and charged with one count of malicious use of explosive materials and one count of possessing a destructive device.
According to court documents, on March 25, Aimenn D. Penny, 20, of Alliance, used Molotov cocktails against the Community Church of Chesterland (CCC), in Chesterland, Ohio, in an attempt to burn the church to the ground.
“As alleged in the charging documents, the defendant used an explosive device to cause harm to a church he found objectionable,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “It is the solemn duty of the Department of Justice to safeguard the right of all Americans to free expression, and I commend the work of law enforcement in this matter.”
“Violence and destruction are never an acceptable way to express a disagreement with a particular viewpoint,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “While, as Americans, we enjoy the right to disagree, doing so peacefully is the only appropriate option. The United States Attorney’s Office for the Northern District of Ohio remains committed to protecting the rights of all citizens to express their viewpoints peacefully.”
“The FBI Cleveland Joint Terrorism Task Force worked alongside the Chester Township Police Department in the matter surrounding a Molotov cocktail used against the Community Church of Chesterland on March 25. The FBI leveraged its task force and its specialized resources to identify, locate and subsequently arrest the subject earlier today,” said Special Agent in Charge Gregory Nelsen of the FBI Cleveland Field Office. “We thank the collaborative work and strong partnership of the Chester Township Police and Lake and Geauga County local authorities who assisted.”
If convicted, Penny faces a mandatory minimum of five years and up to 20 years in prison for the malicious use of explosive materials charge and up to 10 years in prison for the possession of a destructive device charge.
The FBI Cleveland Field Office is investigating the case.
Assistant U.S. Attorney Brian Deckert for the Northern District of Ohio and Trial Attorneys Jacob Warren and Justin Sher of the National Security Division’s Counterterrorism Section are prosecuting the case.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department and EPA File Complaint Against Norfolk Southern for Unlawful Discharge of Pollutants and Hazardous Substances in East Palestine DerailmentRead the Press Release
Today, on behalf of the U.S. Environmental Protection Agency (EPA) and in coordination with the U.S. Attorney’s Office for the Northern District of Ohio, the Justice Department’s Environment and Natural Resources Division announced a complaint against Norfolk Southern Corporation and Norfolk Southern Railway Company (Norfolk Southern) related to the Feb. 3, derailment in East Palestine, Ohio. The complaint seeks penalties and injunctive relief for the unlawful discharge of pollutants, oil, and hazardous substances under the Clean Water Act, and declaratory judgment on liability for past and future costs under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
This action follows EPA’s issuance on Feb. 21, 2023 of a Unilateral Administrative Order under CERCLA to Norfolk Southern Railway Company requiring the company to develop and implement plans to address contamination and pay EPA’s response costs associated with the order.
“When a Norfolk Southern train derailed last month in East Palestine, Ohio, it released toxins into the air, soil, and water, endangering the health and safety of people in surrounding communities,” said Attorney General Merrick B. Garland. “With this complaint, the Justice Department and the EPA are acting to pursue justice for the residents of East Palestine and ensure that Norfolk Southern carries the financial burden for the harm it has caused and continues to inflict on the community.”
“From the very beginning, I pledged to the people of East Palestine that EPA would hold Norfolk Southern fully accountable for jeopardizing the community’s health and safety,” said EPA Administrator Michael S. Regan. “No community should have to go through what East Palestine residents have faced. With today’s action, we are once more delivering on our commitment to ensure Norfolk Southern cleans up the mess they made and pays for the damage they have inflicted as we work to ensure this community can feel safe at home again.”
“Last month, the East Palestine community was upended by a horrific train derailment. By filing this complaint today, we are demanding accountability from Norfolk Southern for the harm this event has caused,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will tirelessly pursue justice for the people living in and near East Palestine, who like all Americans deserve clean air, clean water, and a safe community for their children.”
“The United States Attorney’s Office stands with our district’s residents in pursuing accountability and justice in both the immediate and distant future, as we work together to deal with the damage and destruction this disaster has caused,” said First Assistant U.S. Attorney Michelle Baeppler for the Northern District of Ohio.
On Feb. 3, 2023, a Norfolk Southern train carrying hazardous materials, including hazardous substances, pollutants, and oil derailed in East Palestine, Ohio. The derailment resulted in a pile of burning rail cars, and contamination of the community’s air, land, and water. Residents living near the derailment site were evacuated. Based on information Norfolk Southern provided, the hazardous materials contained in these cars included vinyl chloride, ethylene glycol monobutyl ether, ethylhexyl acrylate, butyl acrylate, isobutylene, and benzene residue. Within hours of the derailment, EPA and its federal and state partners began responding to the incident, including providing on-the-ground assistance to first responders and conducting robust testing in and around East Palestine.
The fire caused by the derailment burned for several days. On Feb. 5, monitoring indicated that the temperature in one of the rail cars containing vinyl chloride was rising. To prevent an explosion, Norfolk Southern vented and burned five rail cars containing vinyl chloride in a flare trench the following day, resulting in additional releases.
Since the EPA’s issuance of the Unilateral Administrative Order to Norfolk Southern Railway Company, the EPA has been overseeing that company’s work under the order. Approximately 9.2 million gallons of liquid wastewater, and an estimated 12,932 tons of contaminated soils and solids have been shipped off-site.
The EPA and other federal agencies continue to investigate the circumstances leading up to and following the derailment. The United States will pursue further actions as warranted in the future as its investigatory work proceeds.
*This release has been updated to reflect the correct date, March 31, 2023.
Justice Department and EPA File Complaint Against Norfolk Southern for Unlawful Discharge of Pollutants and Hazardous Substances in East Palestine DerailmentRead the Press Release
WASHINGTON – Today, on behalf of the U.S. Environmental Protection Agency (EPA) and in coordination with the U.S. Attorney’s Office for the Northern District of Ohio, the Justice Department’s Environment and Natural Resources Division filed a complaint against Norfolk Southern Corporation and Norfolk Southern Railway Company (Norfolk Southern) related to the Feb. 3, derailment in East Palestine, Ohio. The complaint seeks penalties and injunctive relief for the unlawful discharge of pollutants, oil, and hazardous substances under the Clean Water Act, and declaratory judgment on liability for past and future costs under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
This action follows EPA’s issuance on Feb. 21, 2023 of a Unilateral Administrative Order under CERCLA to Norfolk Southern Railway Company requiring the company to develop and implement plans to address contamination and pay EPA’s response costs associated with the order.
“When a Norfolk Southern train derailed last month in East Palestine, Ohio, it released toxins into the air, soil, and water, endangering the health and safety of people in surrounding communities,” said Attorney General Merrick B. Garland. “With this complaint, the Justice Department and the EPA are acting to pursue justice for the residents of East Palestine and ensure that Norfolk Southern carries the financial burden for the harm it has caused and continues to inflict on the community.”
“From the very beginning, I pledged to the people of East Palestine that EPA would hold Norfolk Southern fully accountable for jeopardizing the community’s health and safety,” said EPA Administrator Michael S. Regan. “No community should have to go through what East Palestine residents have faced. With today’s action, we are once more delivering on our commitment to ensure Norfolk Southern cleans up the mess they made and pays for the damage they have inflicted as we work to ensure this community can feel safe at home again.”
“Last month, the East Palestine community was upended by a horrific train derailment. By filing this complaint today, we are demanding accountability from Norfolk Southern for the harm this event has caused,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will tirelessly pursue justice for the people living in and near East Palestine, who like all Americans deserve clean air, clean water, and a safe community for their children.”
“The United States Attorney’s Office stands with our district’s residents in pursuing accountability and justice in both the immediate and distant future, as we work together to deal with the damage and destruction this disaster has caused,” said First Assistant U.S. Attorney Michelle Baeppler for the Northern District of Ohio.
On Feb. 3, 2023, a Norfolk Southern train carrying hazardous materials, including hazardous substances, pollutants, and oil derailed in East Palestine, Ohio. The derailment resulted in a pile of burning rail cars, and contamination of the community’s air, land, and water. Residents living near the derailment site were evacuated. Based on information Norfolk Southern provided, the hazardous materials contained in these cars included vinyl chloride, ethylene glycol monobutyl ether, ethylhexyl acrylate, butyl acrylate, isobutylene, and benzene residue. Within hours of the derailment, EPA and its federal and state partners began responding to the incident, including providing on-the-ground assistance to first responders and conducting robust testing in and around East Palestine.
The fire caused by the derailment burned for several days. On Feb. 5, monitoring indicated that the temperature in one of the rail cars containing vinyl chloride was rising. To prevent an explosion, Norfolk Southern vented and burned five rail cars containing vinyl chloride in a flare trench the following day, resulting in additional releases.
Since the EPA’s issuance of the Unilateral Administrative Order to Norfolk Southern Railway Company, the EPA has been overseeing that company’s work under the order. Approximately 9.2 million gallons of liquid wastewater, and an estimated 12,932 tons of contaminated soils and solids have been shipped off-site.
The EPA and other federal agencies continue to investigate the circumstances leading up to and following the derailment. The United States will pursue further actions as warranted in the future as its investigatory work proceeds.
Sylvania Woman Sentenced to Prison for Providing False Statements to Law Enforcement Regarding Illegally Purchased FirearmRead the Press Release
TOLEDO – Taylor Elysse Corggens, 30, of Sylvania, Ohio, was sentenced on Monday, March 20, 2023, to 6 months in prison by U.S. District Judge James G. Carr after she pleaded guilty to making a false statement in connection with her purchase of a firearm for a felon.
According to court documents, on May 24, 2021, Corggens and another individual, who was a convicted felon, entered a federally licensed firearms dealer together in the Oregon, Ohio, area. While in the store, court documents state that the felon picked out and handled a firearm despite being legally prohibited from such activities.
Court documents state that Corggens then used her identification to purchase the firearm from the dealer. Records show that the felon was later pulled over by Toledo Police Department officers and found to be in possession of the same firearm that Corggens purchased.
Later, in December 2021, federal law enforcement authorities interviewed Corggens about the firearm and asked Corggens if anyone was with her when she purchased the firearm. Corggens stated that no one was with her when she purchased the firearm despite surveillance video evidence from the firearms dealer showing Corggens and another individual arriving together in the same vehicle and entering the dealer simultaneously.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Toledo Police Department, and Homeland Security Investigations. This case was prosecuted by Assistant U.S. Attorney Robert N. Melching.
Perrysburg Man Indicted on Possession with Intent to Distribute MethamphetamineRead the Press Release
TOLEDO - Sage George, 31, of Perrysburg, Ohio was indicted on one count of Possession with Intent to Distribute Methamphetamine and one count of Use of a Communications Facility to Facilitate a Drug Felony.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Postal Inspection Service working in conjunction with the Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorneys Alissa M. Sterling and Frank H. Spryszak.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Jury Convicts Two of Conspiracy to Traffic FentanylRead the Press Release
AKRON - First Assistant United States Attorney Michelle M. Baeppler announced that a federal jury convicted Branea Bryant, age 29, and Ramel Drew, age 44, both of Cleveland, Ohio, of drug trafficking offenses on Friday, March 17, in Akron, Ohio, following a two-week jury trial before Judge John R. Adams.
The jury convicted Branea Bryant of one count of Conspiracy to Distribute and Possess with Intent to Distribute 400 Grams or More of Fentanyl, one count of Conspiracy to Launder Money, and three counts of Money Laundering. The jury convicted Ramel Drew of one count of Conspiracy to Distribute and Possess with Intent to Distribute 400 Grams or More of Fentanyl, one count of Use of a Communications Facility to Facilitate Drug Trafficking, one count of Distribution of Fentanyl, and one count of Possession with Intent to Distribute 400 Grams or More of Fentanyl.
The following information is based on court documents and evidence presented at trial.
In 2021, the FBI learned that Branea Bryant’s brother, Brandon Bryant, and her boyfriend, Devonn Fair, were selling fentanyl to customers at various locations on the east side of Cleveland. Branea Bryant’s company, ADF3 Investments, LLC, owned a house on East 130th Street in Cleveland that Brandon Bryant was using to sell fentanyl.
Based upon a long term, multi-agency investigation, the FBI determined that Brandon Bryant and Devonn Fair were selling fentanyl to customers at multiple locations in Cleveland, and that Branea Bryant and Ramel Drew were involved in the drug trafficking conspiracy.On August 31, 2021, the FBI and other law enforcement agencies executed search warrants at seven houses connected to the drug organization, and seized over a kilogram of fentanyl, numerous firearms, ammunition, high-speed money counters, drug presses, a vacuum-sealer used to package drugs and money, over $68,000 in cash, jewelry, and multiple high-end vehicles, including two Range Rovers and a Jaguar F-Type.
One of the houses searched on August 31st was on East 89th Street in Cleveland, which the FBI had identified as a location where customers came from as far away as Lorain County and Ashland County to buy fentanyl. The FBI recovered a DVR surveillance system from the East 89th Street house, which showed Ramel Drew, Devonn Fair, and codefendant Nathaniel Lightfoot engaging in drug transactions with customers in the driveway of the residence. Testimony at trial also established that Fair, Drew, and Lightfoot shared a cell phone that drug customers would call to arrange the drug purchases. Fair and Lightfoot previously pled guilty and are pending sentencing.
Investigation by the IRS showed that Branea Bryant’s company, ADF3 Investments, owned several high-end vehicles connected to the drug conspiracy, including two Range Rovers that had been purchased with drug money, and a Jaguar F-Type that was used to facilitate drug deals. At trial, the lead IRS investigator testified that ADF3 did not file any state or federal tax returns, and that it did not appear to engage in any kind of legitimate business activity. The IRS investigator also testified that ADF3’s bank accounts, which had been opened by Branea Bryant, were largely funded with cash deposits and that ADF3’s accounts had been used to make large purchases at designer stores like Gucci and Prada using Branea Bryant’s debit card.
Branea Bryant and Ramel Drew were among 24 defendants indicted in the case, which was the result of a coordinated effort by the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The other 22 defendants named in the indictment previously pled guilty.
The case was investigated by the FBI’s Cartel, Gang, Narcotics, and Laundering Task Force (CGNL) and IRS Criminal Investigation, with assistance from the Cleveland Division of Police, the Cuyahoga County Sheriff’s Office, the Ohio Investigative Unit, the Ohio State Highway Patrol, the Cleveland Heights Police Department, the Southeast Area Law Enforcement Task Force (SEALE), the ATF, the U.S. Marshals Service, the DEA, and the Cuyahoga County Regional Forensic Science Laboratory.
The case is being prosecuted by Assistant U.S. Attorneys James Lewis, Joseph Dangelo, and James Morford.
Findlay Man Indicted on Five Counts of Bank RobberyRead the Press Release
TOLEDO - Gage Haws, 28, of Findlay, Ohio was indicted on five counts of Bank Robbery. The indictment alleges that between December 31, 2022, and February 16, 2023, the defendant committed robberies at Premier Bank in Arlington, Ohio, Old Fort Bank in Bettsville, Ohio, First National Bank of Sycamore in McCutchenville, Ohio, Union Bank Company in Kalida, Ohio, and State Bank and Trust Company in Delta, Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
The investigation preceding the indictment was a collaborative effort conducted by the Federal Bureau of Investigation, Findlay Police Department, Putnam County Sheriff’s Office, Kalida Police Department, Seneca County Sheriff’s Office, Delta Police Department, Fulton County Sheriff’s Office, Wyandot County Sheriff’s Office, and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Assistant United States Attorneys Frank H. Spryszak and Matthew D. Simko.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Jury Convicts Pair of Fraud and Health Care Fraud in ToledoRead the Press Release
TOLEDO, Ohio - First Assistant United States Attorney Michelle M. Baeppler announced that a federal jury convicted Dr. Oliver Jenkins, age 60, and Sherry-Ann Jenkins, age 58, of Jessup, Georgia, of conspiracy, mail fraud, wire fraud, and health care fraud on Friday, March 17, in Toledo, Ohio following a two- week trial before Judge Jack Zouhary.
According to court documents and evidence presented at trial, Dr. Oliver Jenkins, who was an Ear, Nose, and Throat M.D. at the Toledo Clinic, and his wife, Sherry-Ann Jenkins, who had a Ph.D. but was not licensed to practice medicine in Ohio, started a new business called the “The Toledo Clinic Cognitive Center.” The Jenkinses represented to the Toledo Clinic that patients suspected of cognitive disorders, particularly dementia and Alzheimer’s Disease, could come to the Cognitive Center for neurocognitive testing, diagnosis, treatment, and referrals, and that Sherry-Ann Jenkins would administer the neurocognitive testing under the supervision of Dr. Oliver Jenkins. The Jenkinses represented that Dr. Oliver Jenkins would make a diagnosis, and provide medical treatment, or a referral. Instead, the Jenkinses engaged in a scheme to defraud. Dr. Oliver Jenkins never saw or treated patients at the Cognitive Center. Sherry-Ann Jenkins ordered PET scans of patients’ brains, interpreted the scans, diagnosed patients, including a college-aged student, with Alzheimer’s Disease, Dementia, or other impairments, recommended patients take coconut oil to improve memory, and instructed certain patients to see her every 3-6 weeks for the rest of their lives. The Jenkinses billed Cognitive Center patients and health care benefits programs using Dr. Oliver Jenkins’ billing number.
This case was investigated by the Federal Bureau of Investigation in Toledo, Ohio, the United States Department of Health and Human Services, Office of Inspector General in Cleveland, Ohio, the Ohio Attorney General’s Medicaid Fraud Control Unit, and the Ohio State Medical Board. The case is being prosecuted by Assistant U.S. Attorneys Brian McDonough and Robert Melching.
United States Files Complaint Alleging that Rite Aid Dispensed Controlled Substances in Violation of the False Claims Act and the Controlled Substances ActRead the Press Release
WASHINGTON – The Justice Department announced on March 13, 2023, that the United States filed a complaint in intervention in a whistleblower lawsuit brought under the False Claims Act (FCA) against Rite Aid Corporation and various subsidiaries (collectively Rite Aid) alleging that Rite Aid knowingly filled unlawful prescriptions for controlled substances. In addition to alleging claims under the FCA, the government’s complaint also alleges violations of the Controlled Substances Act (CSA). Rite Aid is one of the country’s largest pharmacy chains, with over 2,200 pharmacies in 17 states.
“The Justice Department is using every tool at our disposal to confront the opioid epidemic that is killing Americans and shattering communities across the country,” said Attorney General Merrick B. Garland. “That includes holding corporations, like Rite Aid, accountable for knowingly filling unlawful prescriptions for controlled substances.”
“We allege that Rite Aid filled hundreds of thousands of prescriptions that did not meet legal requirements,” said Associate Attorney General Vanita Gupta. “According to our complaint, Rite Aid’s pharmacists repeatedly filled prescriptions for controlled substances with obvious red flags, and Rite Aid intentionally deleted internal notes about suspicious prescribers. These practices opened the floodgates for millions of opioid pills and other controlled substances to flow illegally out of Rite Aid’s stores.”
“The opioid crisis has exacted a heavy toll on communities across the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s complaint is an important reminder that the Justice Department will hold accountable any individuals or entities, including pharmacies, that fueled this terrible crisis.”
“Pharmacies, physicians, corporations, and other health care entities that have contributed to the proliferation of opioids in our communities and the tragic loss of life from overdose deaths must answer for their role in the crisis we now face,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “This complaint is a continuation of the Justice Department’s commitment to hold accountable those entities that aggravated and profited from the opioid crisis.”
The government’s complaint alleges that, from May 2014 through June 2019, Rite Aid knowingly filled at least hundreds of thousands of unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, were not for a medically accepted indication, or were not issued in the usual course of professional practice. These unlawful prescriptions included, for example, prescriptions for the dangerous and highly abused combination of drugs known as “the trinity,” prescriptions for excessive quantities of opioids, such as oxycodone and fentanyl, and prescriptions issued by prescribers whom Rite Aid
pharmacists had repeatedly identified internally as writing illegitimate prescriptions.The government alleges that Rite Aid pharmacists filled these prescriptions despite clear “red flags” that were highly indicative that the prescriptions were unlawful. The government further alleges that Rite Aid not only ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from certain pharmacists, its distributor, and its own internal data, but compounded its failure to act by intentionally deleting internal notes about suspicious prescribers written by Rite Aid pharmacists and directing district managers to tell pharmacists “to be mindful of everything that is put in writing.” By knowingly filling unlawful prescriptions for controlled substances, the government alleges that Rite Aid violated the CSA and, where Rite Aid sought reimbursement from federal healthcare programs, also violated the FCA.
Along with Rite Aid Corporation, the government’s complaint names as defendants the following Rite Aid subsidiaries: Rite Aid Hdqtrs, Corp.; Rite Aid of Connecticut, Inc.; Rite Aid of Delaware, Inc.; Rite Aid of Maryland; Rite Aid of Michigan; Rite Aid of New Hampshire; Rite Aid of New Jersey; Rite Aid of Ohio; Rite Aid of Pennsylvania; and Rite Aid of Virginia.
“The action supported today by the Drug Enforcement Administration (DEA) should serve as a warning to those in the pharmacy industry who choose to put profit over customer safety,” said Special Agent in Charge Orville O. Greene of the DEA.
“Pharmacies are required to ensure prescription drugs are only dispensed based on valid prescriptions,” said Special Agent in Charge Maureen Dixon of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “Prescriptions which are not medically necessary, and not for a medically accepted indication, will not be paid for by Medicare and Medicaid. HHS-OIG will continue to work with our law enforcement partners and the Department of Justice’s Civil Division to recover improperly paid funds through the FCA.”
Whistleblowers Andrew White, Mark Rosenberg, and Ann Wegelin, who all previously worked for Rite Aid at various pharmacies, filed an action in October 2019 under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over the lawsuit, as it has done here in part. Those who violate the Act are subject to treble damages and applicable penalties.
The case is captioned United States ex rel. White et al. v. Rite Aid Corp., et al., No. 1:21-cv-1239 (N.D. Ohio).
The United States’ intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Northern District of Ohio. The DEA Cleveland Field Division, FBI Cleveland Field Office, and HHS-OIG provided substantial assistance in the investigation.
The United States is represented in this matter by Senior Trial Counsel Christopher Wilson of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Patricia Fitzgerald and Elizabeth Berry for the Northern District of Ohio.
The Justice Department is committed to holding responsible those who have fueled the opioid crisis by violating the law.
Last week, the Associate Attorney General announced the creation of the Opioid Epidemic Civil Litigation Task Force, which formalizes and enhances coordination of the Department’s existing work and will consider new initiatives. Because of the scope and duration of the crisis, the Task Force includes U.S. Attorneys’ Offices, the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch (Fraud Section), the Drug Enforcement Administration, and other Department components.
The Task Force will steer the Department’s civil litigation efforts involving actors alleged to have contributed to the opioid epidemic, including by diverting prescription opioids.
The claims asserted against defendants are allegations only and there has been no determination
of liability.Akron Man Charged with Conspiracy to Defraud the United StatesRead the Press Release
AKRON - Romeo Travis, 39, of Akron, Ohio, was charged by way of information on one count of conspiracy to defraud the United States and one count of wire fraud. The information alleges that Travis impeded, impaired, and obstructed the lawful government functions of the Internal Revenue Service of the Department of the Treasury in computing, assessing, and collecting his individual income taxes. The information further alleges that, with Travis’ knowledge and consent, his professional sports agent altered Travis’ basketball contracts with overseas teams by understating his income, prior to sending those contracts to Travis’ tax preparer. As a result, Travis reduced his tax liability. The wire fraud count alleges that the false tax returns from the above scheme, that falsely under-reported Travis’ income, were used to reduce Travis’ child support payments to an unidentified individual as managed by the Stark County Child Support Enforcement Agency.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the information was conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Senior Litigation Counsel for Tax, Robert J. Patton.
A information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Toledo Man Sentenced to More Than 23 Years in Prison for Role in Drug Trafficking Conspiracy and Illegal Possession of FirearmRead the Press Release
TOLEDO – A Toledo man was sentenced to spend more than 23 years – or 280 months – in prison by U.S. District Judge Jack Zouhary on Feb. 8, 2023, after he pleaded guilty to multiple charges stemming from his role in a Toledo-area drug trafficking conspiracy.
Jackie Green, 53, pleaded guilty in July 2022 to conspiracy to possess with intent to distribute controlled substances, distribution of controlled substances, and being a felon in possession of a firearm.
According to court documents, beginning in December 2019, Green and more than 20 other co-conspirators conspired together to traffic large amounts of fentanyl, crack cocaine, and cocaine in the Toledo area. Court documents say that Green received large amounts of drugs from various suppliers and then further distributed those drugs to others.
Court records show that members of the conspiracy used cell phones and code words to conceal their activity and multiple residences in the Toledo area to store, break down, package, and distribute their narcotics and proceeds. Furthermore, court documents state that Green used various vehicles to transport and deliver the narcotics that he sold.
In September 2020, Green was found by law enforcement authorities to be in possession of a firearm. Green was prohibited from possessing a firearm due to multiple previous drug trafficking convictions in the Lucas County Court of Common Pleas.
On December 16, 2020, federal, state, county, and local law enforcement authorities participated in a wide-ranging takedown operation of 24 individuals involved in the drug trafficking conspiracy.
This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the FBI Safe Streets Task Force, Toledo Metro Drug Task Force, and the Northwest Ohio Interdiction Task Force.
The FBI Safe Streets is comprised of the FBI, Toledo Police Department, Sylvania Township Police Department, and the Oregon Police Department. The Toledo Metro Drug Task Force is comprised of the FBI, Toledo Police Department, Bureau of Criminal Investigations, Lucas County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The Northwest Ohio Interdiction Task Force is comprised of the FBI, Toledo Police Department, and the Lucas and Wood County Sheriff’s Offices.
This case was prosecuted by Assistant U.S. Attorneys Alissa M. Sterling, Robert N. Melching, and Sara A. Al-Sorghali.
Parma Man Sentenced to Prison for Conspiracy to Commit Arson During May 30, 2020, Demonstrations and Unrest in Downtown ClevelandRead the Press Release
CLEVELAND – A Parma man was sentenced today to 24 months in prison by U.S. District Judge Donald C. Nugent after he pleaded guilty to conspiracy to commit arson related to the destruction of a parking booth during the May 30, 2020, demonstrations and civil unrest in downtown Cleveland.
According to court documents, on May 30, 2020, Seth Calig, 51, and other co-conspirators set fire to the Shaia & PPR parking booth on West 3rd Street. Court documents state that during demonstrations and civil unrest in downtown Cleveland, Calig and others gathered around the parking booth, ignited a roll of paper towels and cardboard with a lighter, and placed it inside the booth. As a result of their actions, court documents state that Calig and the others caused significant physical damage to the parking booth.
In addition to the prison sentence, Judge Nugent ordered Calig to pay $220 dollars in restitution and recommended he undergo 500 hours of a residential drug abuse program.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Cleveland Division of Police. This case was prosecuted by Assistant U.S. Attorney Kelly L. Galvin.
Customer Service Rep Charged with Stealing over $1.1 Million from Bank CustomersRead the Press Release
CLEVELAND – A federal grand jury has returned a sixteen-count indictment charging Ashley Miller, 36, of Akron, Ohio, with four counts of mail fraud, four counts of wire fraud, four counts of bank fraud, and four counts of aggravated identity theft related to her involvement in a scheme to steal approximately $1.1 million from U.S. Bank customers.
According to court records, from May 2021 to October 2021, the defendant was employed as a customer service agent for Dial American, a third-party vendor for U.S. Bank contracted to do various customer service duties over the telephone.
Court documents state that during this timeframe, Miller allegedly devised a scheme to obtain funds from U.S. Bank customers by changing an account holder’s original mailing address for debit cards issued by U.S. Bank, causing debit cards to be mailed to a residential address in Akron owned by the defendant.
It is alleged that the defendant then used these debit cards for personal use by making fraudulent withdrawals from various ATMs. In total, court documents state that Miller compromised approximately 299 accounts for about $1,118,391.82.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This investigation was conducted by the United States Secret Service (USSS) and the Fairlawn (OH) Police Department. This case is being prosecuted by Assistant U.S. Attorney Bryson N. Gillard.
Canton Gambling Business Co-Owner Sentenced to Prison for Tax Fraud ConspiracyRead the Press Release
CLEVELAND – A Canton woman was sentenced to 24 months in prison on Wednesday, Feb. 15, 2023, by U.S. District Judge Donald C. Nugent after pleading guilty to conspiring to defraud the IRS in connection with her ownership and operation of illegal gambling businesses in the Canton, Ohio area.
According to court documents and statements made in court, from 2009 through 2018, Rebecca Kachner, along with other co-conspirators, owned and operated two illegal gambling businesses in the Canton area, namely Skilled Shamrock and Redemption.
As part of the guilty plea, Kachner admitted to conspiring with the other owners to defraud the IRS by filing false tax returns that omitted cash income she received from the operation of the illegal gambling businesses. Kachner also admitted to attempting to hide substantial portions of her unreported cash income. Court documents say that in January 2018, Kachner rented a locker at a local YMCA and stored $241,266 of her illegal gambling proceeds. Law enforcement authorities seized that currency during the investigation.
In addition to the prison sentence, Judge Nugent ordered Kachner to forfeit the $241,266 recovered from the locker and to pay $1,184,668.37 in restitution to the IRS for individual income taxes and interest owed between tax years 2012 and 2017.
This case was investigated by IRS Criminal Investigation (CI), U.S. Department of Treasury, Office of the Inspector General (OIG), and the Ohio Casino Control Commission. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and an Investigator from the Stark County Prosecutor’s Office provided substantial assistance in the investigation.
This case was prosecuted by Assistant United States Attorneys Robert Patton, David Toepfer, and Aaron Howell of the U.S. Attorney’s Office for the Northern District of Ohio, along with Trial Attorneys Richard Rolwing and Sam Bean of the Department of Justice Tax Division.
Two Euclid Men Charged with Stealing COVID-19 Pandemic Unemployment Insurance BenefitsRead the Press Release
CLEVELAND – A federal grand jury has returned a thirteen-count indictment charging Robert Nathaniel Andre Thomas III, 24, and Montareo Banks, 24, both of Euclid, Ohio, with engaging in a conspiracy to steal approximately $44,000 in pandemic unemployment insurance benefits from the federal government and the States of Ohio, Arizona, California, and New Jersey.
Thomas and Banks are charged in the indictment with one count of conspiracy to commit mail fraud and wire fraud, two counts of mail fraud, five counts of wire fraud, and five counts of aggravated identity theft.
According to the indictment, from May through November 2020, the defendants and their co-conspirators are accused of engaging in a conspiracy to fraudulently obtain COVID-19 pandemic unemployment insurance benefits. These benefits were provided via the Department of Labor (DOL) to State Workforce Agencies under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act of 2020.
The indictment alleges that as part of their scheme, the defendants and their co-conspirators knowingly made false statements and omissions regarding employment history, residency, and other information on applications for pandemic unemployment insurance benefits to the Ohio Department of Job and Family Services (ODJFS), Arizona Department of Economic Security (DES), California Employment Development Department (EDD), and the New Jersey Disaster Unemployment Assistance (DUA).
Court documents state that as a result of the scheme, the defendants and their co-conspirators received approximately $40,000 in pandemic unemployment insurance benefits to which they were not entitled.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This case was investigated by the Cleveland FBI and the Department of Labor. This case is being prosecuted by Assistant U.S. Attorney Bryson N. Gillard.
North Royalton Man Charged with Defrauding Victims Out of More Than $800k in Investment Fraud SchemeRead the Press Release
CLEVELAND - A federal grand jury has returned a one-count indictment charging Paul Lebo, 40, of North Royalton, Ohio, with wire fraud related to an alleged investment fraud scheme.
According to court documents, from April 2017 to October 2021, the defendant is accused of devising a scheme to defraud approximately 99 victim investors out of more than $800,000.
As part of the scheme, court documents say that the defendant solicited and accepted deposits from victim investors purportedly for deposits on future equity ownership in the defendant’s hedge fund, Paul Kimmins Investments (PKI), LP, as well as for investment into various options trades. However, court records state that the defendant used investor funds for personal expenses and to repay earlier investors.
According to court records, the PKI hedge fund was insolvent, and the defendant took steps to conceal the alleged misuse of investor funds from investors by using shell companies with no legitimate operations or assets, making false statements to victims about the status of their investment, and using funds from his relatives and new investor funds, without permission or authorization, to repay prior victims.
In total, the indictment alleges that the defendant caused approximately $800,124.86 in losses to victim investors, utilized approximately $49,630 in funds from relatives to repay individuals who invested or loaned money to the defendant, and accepted approximately $18,565 from seven different victims for the purported “sale” of the same item that the defendant never delivered.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any; the defendant’s role in the offense; and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This case was investigated by the Cleveland Division of the FBI. This case is being prosecuted by Assistant United States Attorney Erica D. Barnhill.
Cleveland Man Charged with Stealing 30 Firearms from Store in AkronRead the Press Release
AKRON – A federal grand jury returned a one-count indictment charging Zaveeyon Teasley, age 20, whose last known address was in Cleveland, Ohio, with stealing 30 firearms from a licensed firearms dealer in Akron.
According to court documents, on Nov. 3, 2022, the defendant allegedly drove a stolen vehicle through the storefront of a licensed federal firearms dealer in Akron. Court documents state that the defendant and two other co-conspirators then stole 30 firearms from the store. After the incident, law enforcement authorities responded and began an investigation into the matter and soon identified the defendants as having been involved in the theft.
On Jan. 11, 2023, court records say that law enforcement authorities executed a search warrant at the defendant’s Cleveland-area residence pursuant to their investigation. During the search of the residence, it is alleged that authorities obtained items linking the defendant to the firearms theft in Akron. Court documents show that the defendant was arrested later that day.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Bath Police Department, and the Cleveland Police Department. This case is being prosecuted by Assistant United States Attorney Peter E. Daly.
Cleveland Man Charged with Distributing Fentanyl that Led to Death of Three in Northern OhioRead the Press Release
CLEVELAND – Reyes John Sanchez-Borrero, 37, of Cleveland, Ohio, was charged today in a five-count superseding indictment with distributing fentanyl that led to the death of three people in Northern Ohio.
According to court documents, on May 4, 2022, Sanchez-Borrero sold fentanyl to two individuals in Cleveland. Both of those individuals then overdosed and died from the fentanyl they obtained from Sanchez-Borrero.
On May 10, 2022, law enforcement executed a search warrant at Sanchez-Borrero’s residence in Cleveland and recovered firearms and ammunition. Sanchez-Borrero is prohibited from possessing a firearm or ammunition due to previous felony convictions of drug trafficking, aggravated robbery, attempted murder, and felonious assault, all in the Cuyahoga County Court of Common Pleas.
Then on July 18, 2022, Sanchez-Borrero is accused of selling fentanyl to a third individual in Cleveland. That individual also overdosed and died from the fentanyl they had obtained from Sanchez-Borrero.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This investigation was conducted by the Cleveland Division of Police, with assistance from the Cleveland Division of the FBI, Drug Enforcement Administration (DEA), and the Cuyahoga County Medical Examiner’s Office. This case is being prosecuted by Assistant U.S. Attorney James P. Lewis.
Strongsville Man Sentenced to Four Years in Prison for Attempted Tax Evasion and Criminal Contempt of CourtRead the Press Release
CLEVELAND – Douglas Smith, 68, of Strongsville, Ohio, was sentenced on Tuesday, Feb. 7, 2023, to four years in prison by U.S. District Judge Dan Aaron Polster after a federal jury convicted him in October 2022 of attempted tax evasion.
Judge Polster sentenced Smith to serve 41 months in prison for the attempted tax evasion conviction and seven months for criminal contempt of court. In addition to the prison sentence, Smith was ordered to pay $726,976.25 restitution and a $19,000 fine for criminal contempt.
According to court documents and evidence presented during the trial, Smith, a licensed dentist in the State of Ohio, attempted to evade paying income taxes for the tax years 2004 to 2012. As part of his efforts, Smith placed his assets, including a home in Columbia Station, into a trust, purchased gold bars and coins, and filed for bankruptcy. Additionally, from 2014 to 2017, Smith again attempted to evade paying income taxes by depositing his paychecks in the bank account of a second holding trust.
During the trial, evidence was presented that showed Smith failed to file an income tax return since 1992 and owed more than $490,000 in back taxes and penalties to the IRS. Court records state that in April 2008 and March 2009, the IRS notified Smith of its intent to collect taxes owed that Smith had failed to pay. Around 2006, Smith began to transfer his assets into a trust that he controlled to evade the collection of taxes and payment of his mortgage.
In October of 2010, court records say that the IRS filed with the Lorain County Recorder’s Office a tax lien against Smith, his trust, and its trustee. In August of 2011, the IRS again sent Smith a letter notifying him that their next action was to recommend administrative seizure and sale of any of his assets to satisfy the federal tax liens.
In January 2012, federal authorities seized approximately $250,000 in cash, gold bars, and gold and silver coins from Smith’s Columbia Station home for non-payment of income taxes to satisfy federal tax liens. After the seizure, Smith purported to transfer all his assets, including his Columbia Station home, to a second trust to defeat collection efforts and avoid foreclosure of his home.
Court documents show that the IRS continued to attempt to collect unpaid income tax from Smith and, around December 2015, served a levy on Smith’s employer. Smith then filed for bankruptcy and made false statements about his assets to shield them from IRS collection actions.
This case was investigated by IRS Criminal Investigations (CI) and was prosecuted by Assistant U.S. Attorney Robert J. Patton.
Toledo Man Sentenced to More Than 16 Years in Prison for Armed Bank Robbery, Carjacking, and EscapeRead the Press Release
TOLEDO – Don Woodson Ellis, 32, of Toledo, Ohio, was sentenced to more than 16 years in prison – or 201 months – by U.S. District Judge Jeffrey J. Helmick on Thursday, Feb. 2, 2023, after he pleaded guilty to using a firearm to steal a vehicle, rob a bank, possessing a firearm as a felon, and escape from jail.
According to court documents, on Aug. 13, 2018, Ellis used a firearm to steal a vehicle from a victim in the parking lot of a Toledo-area gas station. Later that day, court documents say Ellis entered a Fifth Third Bank on Glendale Ave in Toledo, demanded money from a bank employee, and fled the area in a vehicle.
Toledo police later located and arrested Ellis. Police identified the vehicle Ellis was driving as the vehicle stolen from the victim earlier in the day and located stolen money from the bank and a handgun inside.
Ellis is prohibited from possessing a firearm due to a previous felony conviction of bank robbery in Monroe County Michigan.
While incarcerated at the Lucas County Corrections Center, court documents state that Ellis convinced another inmate to switch identities with him and was released within days of his arrest due to the deception. Court records show that Ellis was apprehended by law enforcement days later in Michigan.
This case was investigated by the Cleveland FBI, Toledo Resident Agency and the Toledo Police Department. This case was prosecuted by Assistant U.S. Attorney Matthew Simko.
###
Three Northeast Ohio Men Plead Guilty to Armed Carjacking SpreeRead the Press Release
CLEVELAND – Three Northeast Ohio men pleaded guilty on Friday, Feb. 3, 2023, to three separate armed carjacking incidents that occurred in a single day on Aug. 9, 2022.
Donteze Congress 18, of Maple Heights, Ohio, pleaded guilty to three counts of carjacking and two counts of possession of a firearm in furtherance of a crime of violence.
Thomas J.D. Williams, 18, of Maple Heights, Ohio, pleaded guilty to three counts of carjacking and two counts of possession of a firearm in furtherance of a crime of violence.
Kenneth Franklin, 19, of Akron, Ohio, pleaded guilty to three counts of carjacking and two counts of aiding and abetting possession of a firearm in furtherance of a crime of violence.
According to court documents, on three separate occasions on August 9, 2022, defendants Congress, Williams, Franklin, and a minor co-conspirator used firearms and threats of violence to steal a vehicle. During two of the armed carjacking incidents, court documents say that the defendants, riding together in a vehicle, intentionally crashed their vehicle into the rear of a victim vehicle to cause a minor traffic incident. In the third incident, the defendants followed the victim’s vehicle to a shopping center parking lot.
Court documents state that on each occasion, as the victim exited their vehicle, they were confronted by one or two of the defendants brandishing firearms, threatening violence, and demanding the keys to the vehicle. During each incident, the defendants stole the vehicle and fled the scene.
Later that day, court documents state that officers with the Solon Police Department, along with assistance from other jurisdictions, located Williams driving in one of the stolen vehicles. Williams was later arrested and found to be in possession of a victim credit card and a loaded pistol.
Defendant Williams is scheduled to be sentenced on May 8, 2023. Defendant Congress is scheduled to be sentenced on May 9, 2023. Defendant Franklin is scheduled to be sentenced on May 22, 2023.
This case was investigated by the Cleveland FBI, Solon Police Department, Cuyahoga Falls Police Department, Streetsboro Police Department, and the Garfield Heights Police Department.
This case is being prosecuted by Assistant United States Attorneys Peter E. Daly and Christopher J. Joyce.
Hudson Physician Sentenced to Prison and Ordered to Pay $2.1 Million in Restitution for Role in Prescription Drug Kickback ConspiracyRead the Press Release
AKRON – Deepak Raheja, 66, of Hudson, Ohio, was sentenced today to 30 months in prison by U.S. District Judge Sara Lioi after he pleaded guilty to his role in a pharmaceutical kickback conspiracy. In addition to the prison sentence, Raheja was ordered to surrender his medical license, pay $2,163,995 in restitution, and a $50,000 fine.
According to court documents, between February 2011 and July 2016, Raheja and co-defendants Frank Mazzucco, Gregory Hayslette, and Bhupinder Sawhny conspired together to increase the number of prescriptions that Raheja and Sawhny wrote for Nuedexta, a prescription drug, in exchange for the payment of monetary kickbacks and other items of value.
Court records say that Mazzucco and Hayslette were employed as pharmaceutical sales representatives by Avanir Pharmaceuticals in the region where Raheja and Sawhny practiced. Avanir Pharmaceuticals manufactured Nuedexta, a drug approved by the FDA solely to treat pseudobulbar (PBA). PBA is a condition characterized by involuntary, sudden, and frequent episodes of uncontrollable laughing and crying.
According to court records, Avanir promoted Nuedexta through a speaker’s bureau, in which Avanir representatives engaged doctors to speak about and promote Nuedexta to other medical professionals. Typical speaking engagements involved dinner at a high-end restaurant in which the doctor made a presentation with a slide deck provided by Avanir. An Avanir sales representative was responsible for inviting attendees and attending the presentation.
Court documents state that Raheja joined Avanir’s speaker’s bureau in February 2011 and gave approximately 211 speaking presentations at various restaurants and doctor’s offices between October 2011 and April 2016. For each of these purported presentations, court documents claim that Raheja received approximately $1,500.
During this timeframe, court documents say that Raheja received approximately $331,550 in total payments from Avanir and wrote approximately 10,088 Nuedexta prescriptions – the highest in the country.
As part of the conspiracy, Mazzucco and Hayslette incentivized physicians, including Raheja and Sawhny to write Nuedexta prescriptions through various means, such as arranging speaker’s bureau programs, which were mostly social events; honoraria payments; the falsification of sign-in sheets from speaking engagements to maximize payments and providing food and beverages to doctors and their office staff.
Court documents explain that Raheja and Sawhny took steps in return for these things of value, including writing more Nuedexta prescriptions; causing the submission of billings to Medicare and Medicaid for Nuedexta prescriptions for patients that did not have PBA; falsely diagnosing patients with PBA and recording fictitious symptoms in patient records to support a diagnosis of PBA.
Mazzucco and Hayslette are both scheduled to be sentenced in February 2023 for their roles in the scheme. Sawhny was sentenced to serve three years’ probation and pay $40,126.22 in restitution for his role in the scheme.
This case was investigated by the Cleveland FBI, the Office of Inspector General (OIG) for the United States Department of Health and Human Services (HHS), and the Ohio Attorney General’s Healthcare Fraud Section.
This case was prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Megan R. Miller.
Honduran National Charged with Transporting Illegal AliensRead the Press Release
TOLEDO – A federal grand jury has returned a three-count indictment charging Nestor Alfredo Figueroa-Murillo, 29, of Honduras, with three counts of transporting illegal aliens unlawfully in the United States.
According to court documents, on Jan. 24, 2023, Border Patrol Agents performing patrol duties near a Service Plaza on the Ohio Turnpike in Sandusky County, Ohio, pulled over a vehicle driven by Figueroa-Murillo and discovered that he was transporting six other people inside the vehicle who were illegally inside the United States without authorization. Court documents state that agents then began an investigation into the matter and determined that the six people found inside the vehicle had been illegally transported into the United States.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This investigation was conducted by the United States Border Patrol and is being prosecuted by Assistant U.S. Attorneys Robert N. Melching and Frank Spryszak.
Cleveland Heights Man Sentenced to Prison for Role in Conspiracy that Stole and Resold VehiclesRead the Press Release
AKRON – Hakim Benjamin, 21, of Cleveland Heights, Ohio, was sentenced today by U.S. District Judge Sara Lioi to 27 months in prison after he pleaded guilty to his role in a conspiracy to steal, receive, and sell stolen vehicles.
According to court documents, from December 2021 to February 2022, Benjamin was part of a conspiracy that stole vehicles from car dealerships in Michigan and transported them to be resold in the Northern District of Ohio. Court documents state that Benjamin and his co-defendants targeted specific vehicles to steal and purchase, including the Dodge Durango, Dodge Ram TRX, Dodge Hellcat, Audi 8, and others.
Also charged in this matter as co-defendants are Jaylen Harris, Lavelle Jones, and Devin Rice. Harris, Jones, and Rice were charged in an indictment in June 2022. The case involving the co-defendants remains ongoing.
In addition to the prison sentence, Judge Lioi ordered Benjamin to pay $1,203,445 in restitution to be paid jointly with other defendants.
This case was investigated by the Cleveland FBI, United States Postal Inspection Service (USPIS), Ohio State Highway Patrol, Ohio Bureau of Motor Vehicles, Cuyahoga County Criminal Investigators, Beachwood Police Department, and the Shaker Heights Police Department.
This case was prosecuted by Assistant U.S. Attorneys Kathryn G. Andrachik and Jason W. White.
Niles Physician Pleads Guilty to Illegally Prescribing Controlled Substances and Healthcare FraudRead the Press Release
CLEVELAND – Jeffrey Sutton, 65, a physician who practiced in Niles, Ohio, until early 2022, pleaded guilty in federal court on Monday, Jan. 30, 2023, to 31 counts of illegally prescribing patients opioids and other controlled substances, one count of illegally distributing controlled substances, and 20 counts of healthcare fraud.
According to court documents, from January 2015 through January 2022, Sutton knowingly prescribed medically unnecessary controlled substances to patients outside of the usual course of professional practice and without a legitimate medical purpose. In doing so, court documents state that Sutton caused health care benefit programs to be fraudulently billed for both office visits and the controlled substances.
As part of his conduct, court documents state that Sutton prescribed opioid medications to patients for extended periods, including for over a decade, with little change in regimen and despite knowing that the opioid therapy treatment had failed. Court documents go on to state that Sutton also prescribed short-acting opioid therapy medications to patients for extended periods without establishing treatment goals, pain diagnoses, accurate examinations, and either without any medical imaging or with medical imaging that could not justify the opioid prescribing.
Court records show that, among his patients, Sutton escalated opioid dosages to extreme levels, sometimes increasing the dosage by more than 1,000% and sometimes prescribing more than 22 times the level of opioids that th U.S. Centers for Disease Control and Prevention identified as posing a risk of overdose requiring increased scrutiny. Sutton combined those opioids with other medications like benzodiazepines, a combination that has been known to cause serious risks of slowed or difficult breathing, coma, and death. Sutton also ignored documented behaviors that indicated patients were abusing or diverting prescribed controlled substances or abusing non-prescribed controlled substances like cocaine and fentanyl.
In addition, Sutton admitted that he ignored warnings provided by prescription drug management organizations, insurance carriers, and state authorities about his high prescribing and danger to patients. He also admitted to ignoring and choosing not to act on patient requests to lower dosages.
Sutton also admitted to engaging in sexual acts with patients to whom he directly prescribed controlled substances, including during office visits. He also admitted to delivering dozens of oxycodone pills to the home of a patient with whom he was engaged in a sexual relationship, outside the course of treatment and without a valid prescription.
Finally, Sutton also pleaded guilty to fraudulently causing healthcare benefit programs to pay for patients to receive the medically unnecessary controlled substances and office visits that Sutton required patients to attend to obtain those prescriptions.
Federal investigators are asking anyone who would like to alert investigators to experiences or observations of Jeffrey Sutton’s practice of medicine or other issues to contact the Cleveland FBI at 216-583-5353.
Sutton is scheduled to be sentenced on May 23, 2023.
This case was investigated by the Cleveland FBI, Drug Enforcement Administration (DEA), Department of Health and Human Services Office of the Inspector General (HHS OIG), and the State of Ohio Board of Pharmacy. This case is being prosecuted by Assistant U.S. Attorney Elliot Morrison.
Co-Owner of Binary Options Company Sentenced to Prison for Tax EvasionRead the Press Release
TOLEDO – Jared Davis, the co-owner of a binary options company headquartered in Sandusky, Ohio, was sentenced to 30 months in prison on Friday, Jan 27. 2023, by U.S. District Judge Jack Zouhary after Davis pleaded guilty to multiple counts of tax evasion.
According to court documents, between 2012 and 2016, Davis and his business partner ran a binary options investment scheme that regularly committed fraud. One of the multiple entities involved was Erie Marketing LLC, which was headquartered in Sandusky, Ohio. The options businesses used various trade names, including OptionMint, OptionKing, and OptionQueen.
A binary option is a concept in which an investor seeks a future payout based on the future price of a given security or commodity. Binary options are sometimes traded on regulated exchanges that match two investors, one who believes the price of the asset will go up and the other who believes it will go down.
Court documents state that Davis and his partner used call centers, including those run by Erie Marketing LLC, to solicit individual investors in the scheme to deposit money, often through credit cards, into foreign bank accounts that they controlled. Court documents state that Davis used this money to pay expenses, which included employee salaries, facility fees, fees to the companies that supplied the trading platforms on which the options businesses operated, and internet marketing services.
As part of the scheme, Davis created several shell companies and used a network of foreign nationals and foreign bank accounts to receive credit card payments. Court documents state that Davis and his partner ultimately controlled this process and would eventually repatriate the money to a local Ohio bank, using it to pay employees and other expenses.
Davis pleaded guilty in April 2022 to tax evasion after he failed to file personal tax returns for tax years 2014, 2015, and 2016. According to court documents, Davis had a substantial additional tax due and owing for each of 2014, 2015, and 2016 as a result of the options scheme and made numerous attempts to avoid the payment of taxes.
Judge Zouhary also sentenced Erie Marketing, LLC, to serve three years’ probation and to pay a fine of $4.4 million and restitution to all identified victims (a total the United States expects to be approximately $650,000). Further, Judge Zouhary sentenced Davis to 30 months in prison, a fine of $300,000, restitution to the IRS, three years of supervised release, and to be jointly and severally liable for the debts of Erie Marketing, LLC.
The exact restitution will be determined at a later date, but the United States expects that all known victims will be fully repaid from funds already collected.
This case was investigated by IRS Criminal Investigation (CI) and the Cleveland FBI. This case was prosecuted by Assistant U.S. Attorneys Segev Phillips, Brian McDonough, and Gene Crawford, with guidance from Assistant U.S. Attorney Suzana Koch of the Financial Litigation Program and Victim Witness Specialists Allison Kretz and Gail Hollis.