Northern District of Ohio
Press releases recorded for this federal judicial district.
New Franklin Man Charged with Attempt to Engage in Sexual Activity with Minor and Child PornographyRead the Press Release
AKRON – A federal grand jury returned a three-count indictment charging Kevin Lewis Hedrick, 37, of New Franklin, Ohio, with attempting to coerce or entice a minor to engage in sexual activity and receiving and viewing child pornographic images.
According to the indictment, from August to October 2022, Hedrick used a cell phone in an attempt to coerce or entice a purported 14-year-old girl to engage in sexual activity with him through an adult intermediary. According to the indictment, the intermediary was an undercover officer posing as the mother of the child.
In addition, Hedrick is also charged with receiving and accessing numerous files of child pornography with an intent to view, including at least one image involving a minor under the age of 12.
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 FBI, Akron Resident Agency. This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik.
###
Man Charged with Immigration Fraud for Concealing War Crime Charge in CroatiaRead the Press Release
An Ohio man was arraigned today on criminal charges related to his alleged false statements to U.S. immigration and law enforcement officials about his military service and involvement in a politically and ethnically-motivated attack on civilians in Croatia during the civil war in the former Yugoslavia in the 1990s.
According to the indictment unsealed today, Jugoslav Vidic, 55, of Parma Heights, allegedly made multiple false statements in his successful application to become a lawful permanent resident, including falsely stating that his only past military service was in the Yugoslav Army from 1988 to 1989 and omitting his service in the Serb Army of Krajina and its predecessors from 1991 to 1995. The indictment alleges Vidic falsely stated that he had never been charged with breaking any law even though he had been convicted in absentia in 1998 of a war crime in Croatia, and falsely stated that he had never participated in killing a person because of ethnic origin or political opinion. Vidic also allegedly participated in an attack by ethnic Serb military forces in September 1991 in which Vidic singled out and took away at gunpoint a Croatian civilian who had recently shaken hands with Croatia’s then-president, Franjo Tudjman, who supported Croatian independence from Yugoslavia. The victim was never seen alive again and his body was later exhumed from a mass grave.
Vidic immigrated to the United States as a refugee in 1999. His application to become a lawful permanent resident was approved in 2005. Vidic is also accused of lying to law enforcement agents in 2017 when questioned about his immigration application. Vidic is charged with one count of possessing a green card that was procured by means of materially false statements and one count of making false statements to a federal agent. If convicted, he faces a maximum penalty of 10 years in prison for the first charge and a maximum penalty of five years in prison for the second.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Special Agent in Charge Gregory D. Nelsen of the FBI Cleveland Field Office, Acting Executive Associate Director Steve Francis of Homeland Security Investigations (HSI), and Special Agent in Charge Angie Salazar of the HSI Detroit Field Office made the announcement.
HSI and the FBI are investigating the case with coordination provided by the Human Rights Violators and War Crimes Center (HRVWCC), including the FBI’s International Human Rights Unit (IHRU). The Department of Justice thanks the Ministry of the Interior and the Ministry of Justice and Public Administration of the Republic of Croatia, which were both instrumental in furthering this investigation.
Trial Attorney Patrick Jasperse of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys Matthew W. Shepherd and Jerome J. Teresinski for the Northern District of Ohio are prosecuting the case. The Justice Department’s Office of International Affairs also provided assistance.
Members of the public who have information about human rights violators in the United States are urged to contact U.S. law enforcement through the HSI tip line at 1-866-DHS-2-ICE (1-866-347-2423) or its online tip form at https://www.ice.gov/webform/ice-tip-form or the FBI tip line at 1-800-CALLFBI (1-800-225-5324) or its online tip form at https://tips.fbi.gov/.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Youngstown Area Attorney Convicted of Participating in Scheme to Steal More Than $1.3 Million from IRSRead the Press Release
YOUNGSTOWN – A federal jury today found Robert J. Rohrbaugh, 49, of Canfield, Ohio, guilty of engaging in a conspiracy to help two men illegally obtain more than $1.3 million from the IRS following a six-day trial before U.S. District Judge Benita Y. Pearson in Youngstown.
Rohrbaugh was convicted of conspiracy to commit offenses against the United States, aiding and abetting theft of government property, aiding and abetting false claims against the United States, and conspiracy to commit money laundering.
According to court documents and evidence presented at trial, Rohrbaugh, a Youngstown-area attorney, assisted co-conspirators Brandon Mace and Terris Chanley Baker with obtaining a tax refund check for a fictitious business in the amount of $1,352,779.
Court documents state that in early 2015, Mace and Baker obtained a bogus tax refund check for a fictitious business by using fabricated tax forms and listing false taxes and expenditures that showed significant tax overpayments. After obtaining the refund check, Mace and Baker then contacted and worked with Rohrbaugh to deposit the check in accounts owned by the defendants.
During the trial, prosecutors presented evidence that Rohrbaugh assisted Mace and Baker with the scheme even though he was aware that the two had obtained the refund from an illegitimate business based on false tax returns.
According to court documents, after cashing the refund check, Mace and Baker attempted to launder the money by purchasing several high-end and luxury vehicles. In addition, evidence showed that Mace and Baker used $150,000 of the refund check to pay Rohrbaugh for his services.
Co-defendant Brandon Mace pleaded guilty in September 2020 to his role in the scheme, and co-defendant Terris Chanley Baker was convicted by a jury for his role in April 2022.
Rohrbaugh is scheduled to be sentenced on May 16, 2023.
This case was investigated by IRS Criminal Investigation (CI). This case is being prosecuted by Assistant U.S. Attorneys Megan R. Miller and Erica D. Barnhill.
Two Cleveland Men Sentenced to Prison for Using a Firearm in Connection with a Carjacking in ElyriaRead the Press Release
CLEVELAND – A Cleveland man was sentenced to 13 ½ years in prison on Wednesday, Jan. 18, 2023, by U.S. District Judge John R. Adams for his role in an armed carjacking that occurred at an Elyria-area gas station on Jan. 27, 2022.
“Federal, state, and local law enforcement are focused on carjacking and those committing this crime,” said First Assistant U.S. Attorney Michelle M. Baeppler. “We will continue to prosecute and seek lengthy sentences because of the risk to human life this crime creates.”
“Carjacking is a cowardly crime that can occur anytime and anywhere-- including broad daylight, busy areas, or seemingly well-protected points of interest. Sadly, everyone can be a target,” said Cleveland FBI Special Agent in Charge Gregory Nelsen. “This sentence reflects the severity of the crime and the commitment of the FBI, along with our federal, state, and local partners, to lessen the potential of future carjacking offenses.”
According to court documents, on Jan. 27, 2022, Trayqwan Dunlap, 20, and Clinton Lindsey, 25, both of Cleveland, Ohio, approached a victim at a gas station in Elyria, brandished a firearm, and threatened to harm the victim. Court documents state that the defendants then entered the vehicle and fled.
Elyria Police Officers responded and located the stolen vehicle traveling at a high rate of speed. Officers then observed the vehicle enter the downtown Elyria area and crash into a pillar. Dunlap and Lindsey then exited the vehicle and fled from the scene on foot. Court documents state that police officers later apprehended Dunlap and Lindsey and located a semiautomatic pistol in the stolen vehicle.
Clinton Lindsey was sentenced to more than 10 years in prison on Sept. 29, 2022, for his role in the incident.
This case was investigated by the Elyria Police Department and the Cleveland FBI. This case was prosecuted by Assistant U.S. Attorney Scott Zarzycki.
Pennsylvania Man Sentenced to Prison for Assaulting and Pointing a Firearm at Federal Law Enforcement OfficersRead the Press Release
CLEVELAND – DeWayne Taylor, 33, of Harrisburg, Pennsylvania, was sentenced to 13 ½ years in prison today by U.S. District Judge Pamela A. Barker after he pleaded guilty to assaulting federal law enforcement officers, brandishing a firearm, and being a felon in possession of a firearm.
“This defendant chose to put the lives of innocent people and federal law enforcement officers in danger rather than face his own arrest,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Thankfully, due to the swift and courageous response of the officers, lives were saved that day.”
“I am proud of the professionalism of our Deputies and Task Force Officers during the arrest of this violent fugitive,” said U.S. Marshal Pete Elliott. “Thank you to the U.S. Attorney’s Office for their steadfast effort on this case, along with an outstanding case investigation by the ATF. Law enforcement officers all around the country are dedicated to the safety of their communities, and that is truly the case here in Cleveland.”
According to court documents, in December 2020, members of the United States Marshals Service (USMS) Northern Ohio Violent Fugitive Task Force (NOVFTF) were searching for Taylor due to an arrest warrant issued by the State of Pennsylvania Parole Authority.
Court documents state that NOVFTF officers received information that Taylor was at a Walmart in the city of Cleveland and attempted to make an arrest. During the arrest attempt, court documents state that Taylor noticed the NOVFTF members, got into his vehicle, and pointed a firearm at several of the officers. In response, some of the NOVFTF members discharged their firearms, striking the defendant in the shoulder. The NOVFTF members rendered first aid until EMS arrived and transported the defendant to the hospital.
Taylor is prohibited from possessing a firearm due to previous felony convictions in the Dauphin County Court of Common Pleas in the Commonwealth of Pennsylvania.
This case was investigated by the United States Marshal’s Service Northern Ohio Violent Fugitive Task Force (USMS NOVFTF), Cleveland Division of Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
This case was prosecuted by Assistant United States Attorney Kelly L. Galvin.
Florida Man Pleads Guilty in Scheme to Steal Polymers that Caused Losses of More Than $4.1 MillionRead the Press Release
CLEVELAND – A Parkland, Florida, man pleaded guilty on Tuesday, Jan. 24, 2023, to devising a scheme that defrauded several companies involved in the sale of polymers, including one business in Northeast Ohio, and multiple logistic companies, causing losses of more than $4.1 million.
According to court documents, from July 2013 to January 2020, Terrence Anderson, 66, devised a scheme to steal shipments of polymers from businesses involved in the sale of the chemicals. The scheme was achieved, in part, by fraudulently obtaining services from logistic companies involved in processing rail shipments.
Court documents show that Anderson owned and operated Coral Polymers, a corporation headquartered in Parkland that bought and resold polymers. As part of the scheme, Anderson would pose as fictional employees of well-known large corporations and contact sellers of polymers, including one company in Northeast Ohio, to facilitate large purchases of the substances, which were to be delivered by railcar to victim logistics companies at particular locations.
Contrary to his representations, court documents state that Anderson never intended to pay for the polymers but rather sought to resell them to third-party buyers. Court documents show that Anderson submitted purchase orders for shipments worth approximately $4,855,312 from at least eight sellers and obtained shipments worth more than $3.7 million from six of those sellers.
After ordering the polymers, Anderson arranged for victim logistics companies to unload the railcars, store the substances, repackage, and load them for shipment to their final destination. In addition, court documents show that Anderson enlisted the services of a co-conspirator who owned a trucking company. In an attempt to conceal the identity of the trucking company and the vehicle drivers, Anderson and the co-conspirator directed drivers picking up the shipments in semi-trailer trucks to remove or conceal vehicle license plates, provide fake identification documents if prompted, and to conceal from the logistics companies the true destinations of the deliveries.
Court documents state that Anderson, using Coral Polymers, had instead arranged to resell the shipments to third-party buyers for substantial sums of money, concealing from those buyers the true origin of the polymers.
In total, court records show that Anderson caused losses of more than $4.1 million to the victims he defrauded.
This case was investigated by the Cleveland Division of the FBI and is being prosecuted by Assistant U.S. Attorney Elliot Morrison.
Owner of Two Northeast Ohio Businesses Sentenced to Prison for PPP Loan FraudRead the Press Release
CLEVELAND – The owner of two corporations in Solon and Highland Heights, Ohio, was sentenced on Friday, Jan. 13, 2023, to 15 months in prison and ordered to pay $195,900.34 in restitution to the Small Business Administration (SBA) by U.S. District Judge Pamela A. Barker after he pleaded guilty to his role in a conspiracy to unlawfully obtain Paycheck Protection Program (“PPP”) loans.
According to court documents, Deon D. Levy, 52, of Bedford, Ohio, was part of a larger, nationwide scheme in which co-conspirators submitted to the SBA fraudulent PPP loan applications, including applications for Levy’s businesses in Solon and Highland Heights. Court documents state that the loan applications submitted by Levy and the other co-conspirators included falsified bank statements and payroll tax forms, among other things, and falsely and fraudulently represented the borrowing entities’ operations and finances, including the number of employees and amount of monthly payroll.
Court records show that the loan application for Levy’s business were submitted by co-conspirators James Richard Stote and Ross Charno. In return for their work on the application, Levy sent a kickback of approximately 25% of the amount of the PPP loan secured. As a result, Levy and the other co-defendants caused the SBA to issue two loans worth approximately $875,000 to accounts controlled by Levy.
James Richard Stote was sentenced to 10 years in prison, and Ross Charno was sentenced to two years in prison for their roles in the scheme to submit fraudulent applications for more than $35 million in PPP loans.
This case was investigated by the Cleveland FBI, IRS CI (Criminal Investigation), and the SBA Office of the Inspector General (SBA OIG). This case was prosecuted by Assistant U.S. Attorney Elliot Morrison for the Northern District of Ohio.
Nigerian National Sentenced to Prison for Bank Fraud SchemeRead the Press Release
CLEVELAND – A Nigerian national was sentenced today to more than three years – or 37 months – in prison by U.S. District Judge James S. Gwin after he was convicted by a jury of formulating a conspiracy to obtain stolen financial information, making fraudulent and unauthorized purchases of retail goods and gift cards, and stealing funds from victim bank accounts in Northern Ohio and elsewhere.
Blessing Adeleke, 31, of Nigeria, was convicted in October 2022 of one count of conspiracy to commit bank fraud and 16 counts of bank fraud.
According to court documents, between January 2014 through October 2016, Adeleke served as an administrator for an online marketplace, Shad0w.info, where compromised data, such as credit numbers and personally identifiable information (PII), were sold.
As part of the conspiracy, Adeleke and others obtained stolen credit card information and purchased items, such as retail goods and gift cards for themselves. Adeleke shared this stolen credit card information with others, including co-defendant Kylie Ann Harlow.
Court documents state that Adeleke and Harlow shipped retail goods purchased with the stolen financial information to Harlow and others and, in some instances, returned the goods and gift cards to retail stores to obtain cash. Adeleke and Harlow eventually forwarded the fraudulently obtained goods, gift cards, and money to other members of the conspiracy for their personal enrichment.
Adeleke gained access to at least one bank account belonging to a victim in Pepper Pike, Ohio, from which he sent 16 fraudulent checks.
Kylie Ann Harlow previously pleaded guilty to her role in the scheme and was sentenced in June 2021.
This case was investigated by the Cleveland FBI and was prosecuted by Assistant U.S. Attorneys Brian S. Deckert and Daniel J. Riedl.
The U.S. Department of Justice’s Office of International Affairs provided significant support and assistance in securing the defendant’s arrest and extradition from Ghana. The U.S. Department of Justice thanks its Ghanian partners, specifically the Ministry of Interior and the Office of the Attorney General and Ministry of Justice, for supporting this extradition. The FBI Legal Attaché in Accra and the U.S. Marshals Service also provided significant support and assistance to Adeleke’s extradition.
Mexican National Sentenced to 15 Years in Prison for Illegal Reentry and Role in Fentanyl Trafficking ConspiracyRead the Press Release
TOLEDO – A Mexican national was sentenced on Friday, Jan. 13, 2023, to 15 years in prison by U.S. District Judge James G. Carr after he pleaded guilty to his role in a fentanyl trafficking conspiracy in the Toledo area, as well as illegal reentry into the United States.
According to court documents, in June 2019, Toledo Police Department officers arrested Felipe Penuelas-Rodriguez, 53, of Mexico, following a traffic stop and search of his vehicle. During the search, officers obtained, among other items, 118 fentanyl pills, a duffel bag containing a kilogram brick of fentanyl, and an additional 2,125 fentanyl pills stored in the trunk of the vehicle.
Penuelas-Rodriguez was charged and sentenced under an enhanced penalty due to a prior serious drug trafficking conviction in the Arizona Superior Court. He was also convicted of illegal reentry, having been removed from the United States to Mexico on four separate occasions before he was found in Toledo.
Penuelas-Rodriguez’s passenger, Reyna Trejo, was charged as a co-conspirator with conspiracy to possess with the intent to distribute a controlled substance. Trejo was sentenced to five years in prison on Dec. 5, 2022. Agents determined that Penuelas-Rodriguez and Trejo were traveling across the country delivering fentanyl and bulk cash to co-conspirators along the way when they were stopped in Toledo.
Penuelas-Rodriguez pleaded guilty to conspiracy to possess with the intent to distribute a controlled substance and possession with intent to distribute a controlled substance in July 2022.
This case was investigated by United States Homeland Security Investigations, the Toledo Police Department, and the Northwest Ohio Interdiction Task Force. This case was prosecuted by Assistant U.S. Attorney Robert N. Melching.
###
Ravenna Man Sentenced to Prison for Cyberstalking, Sextortion, and Attempted Sexual Exploitation of a ChildRead the Press Release
AKRON – A Ravenna man was sentenced today to more than 12 years – or 151 months – in prison and 15 years of supervised release by U.S. District Judge John R. Adams after he pleaded guilty to cyberstalking, attempted sexual exploitation of a child, and interstate communication with intent to extort.
“It takes great courage for victims to come forward and report coercive behavior and predatory tactics to law enforcement,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Because these victims came forward, this defendant was brought to justice, a minor was prevented from further harm, and our communities and children are now safer.”
“This defendant used deceptive tactics to extort and blackmail numerous victims throughout Northeast Ohio and sexually exploited a minor,” said FBI Special Agent in Charge Gregory Nelsen. “The investigative work of the FBI underscores our duty to protect children from monstrous individuals’ determined to control others through manipulation and cyber stalking. We will continue to work closely with our federal, state, and local partners to find, identify, and investigate predatory behavior and bring justice to the victims of these horrendous crimes.”
According to court documents, from November 2019 through September 2021, Andrew John Drabic, 33, of Ravenna, Ohio, gained unauthorized access to the personal social media accounts of several victims in Northeast Ohio, stole images, and blackmailed victims. Court documents describe a deceptive scheme that Drabic used, known as “social engineering,” to gain unauthorized access to his victim's social media accounts and phone numbers.
After gaining access, court documents show that Drabic would then obtain non-public images, written communications, and other sensitive materials. As part of the scheme, Drabic used the images and files he obtained to intimidate victims by threatening to release the sensitive materials publicly. Court documents state that, in some instances, Drabic did follow through on his threats and released the materials.
On January 12, 2022, law enforcement authorities executed a search warrant at Drabic’s address in Ravenna following an investigation into the matter. During the execution of the warrant, numerous computer systems, cell phones, storage accessories, and other electronic devices were seized.
Authorities examined Drabic’s electronic devices and observed multiple sexually explicit messages between Drabic and a minor victim. In these messages, Drabic directed the minor to perform sexual acts and send sexually explicit photographs.
This case was investigated by the Cleveland FBI and the Cleveland, Cuyahoga Falls, Kent, Kent State University, Stow and Tallmadge Police Departments. Investigative assistance was provided by the Akron Police Department, Ravenna Police Department, Cedar Point Police Department, Portage County Sheriff’s Office, and the United States Secret Service.
This case was prosecuted by Assistant U.S. Attorney Christopher J. Joyce.
Lorain Man Sentenced to 15 Years in Prison for Distributing Fentanyl that Led to Overdose DeathRead the Press Release
CLEVELAND – Kevin L. Walker Jr., 31, of Lorain, was sentenced on Wednesday, January 11, 2023, to 15 years in prison by U.S. District Judge Christopher A. Boyko after he pleaded guilty to possession of drugs and distribution of fentanyl that led to an overdose death.
“As this sentence demonstrates, our communities will not tolerate drug traffickers and fentanyl dealers who kill or harm our neighbors, friends, and family with their deadly product,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Thanks to the collaborative work of law enforcement, another fentanyl pusher will now spend a significant time behind bars for his actions.”
“Fentanyl continues to flood our nation at an alarming rate, and the citizens of Northern Ohio are not immune from its devastation,” said FBI Cleveland Special Agent in Charge Gregory Nelsen. “This case reflects our commitment to address not only fentanyl, but also the assortment of narcotics making their way into our communities. We will continue to work closely with our federal, state, and local partners to identify drug traffickers and their networks fueling the epidemic.”
According to court documents, Walker was arrested in July 2021 by law enforcement authorities following a warrant issued for corrupting another with drugs. Authorities then searched Walker, a vehicle, and a room he rented and found that Walker was in possession of fentanyl, methamphetamine, and crack cocaine.
Officers then began an investigation into Walker’s drug trafficking activities and learned that on July 28, 2021, Walker intentionally distributed a substance containing fentanyl to a victim who later ingested it, suffered an overdose, and died.
This case was investigated as part of Operation Synthetic Opioid Surge (S.O.S.)., a joint law enforcement initiative that seeks to reduce the supply of deadly synthetic opioids and to identify wholesale distribution networks and international and domestic suppliers in Lorain County.
This case was investigated by the Lorain Police Department, Westlake Police Department, and the Cleveland Division of the FBI. This case was prosecuted by Assistant United States Attorneys Robert F. Corts and Robert J. Kolansky.
U.S. Attorney’s Office Recognizes January as National Human Trafficking Prevention MonthRead the Press Release
CLEVELAND – In recognition of January as National Human Trafficking Prevention Month, the U.S. Attorney's Office for the Northern District of Ohio is encouraging residents to continue the fight against human trafficking by raising awareness and reporting tips to the National Human Trafficking Hotline at 1-888-373-7888 or text 233733.
“Addressing human trafficking in Northern Ohio remains a top priority for our office and law enforcement partners,” said First Assistant U.S. Attorney Michelle M. Baeppler. “In order for us to keep the pressure on traffickers, we need the public’s help to report tips to law enforcement. Only through a collaborative approach can we help end this insidious crime.”
January 11th is recognized as National Day of Human Trafficking Awareness. Today, communities around the country #WearBlue to help raise awareness and encourage others to help prevent trafficking by reporting tips to law enforcement.
Over the past year, the U.S. Attorney’s Office for the Northern District of Ohio has announced several high-profile human trafficking convictions and sentencings, including:
U.S. v. Jason S. Huffman (4:21-cr-348). On September 27, 2022, Jason Huffman was sentenced to more than 27 years in prison after he pleaded guilty to a five-count charging him with transportation of visual depictions of minors engaged in sexual conduct, possession of child pornography. and sexual exploitation of children.
In Feb. 2021, law enforcement authorities executed a search warrant at Huffman’s Youngstown-area residence and found images of child pornography on multiple cellphones belonging to Huffman, including images Huffman had created of a minor victim engaged in sexually explicit conduct.
U.S. v. Reuben Rankin (4:19-cr-716). On July 12, 2022, Reuben Rankin was sentenced to 40 years in prison following convictions of sex trafficking of a minor, production of child pornography, assaulting a federal agent with a deadly weapon, discharging a firearm during a crime of violence and felon in possession of a firearm.
According to court documents, in May 2019, Rankin engaged in sex trafficking of a minor and production of child pornography in order to raise money to purchase drugs, clothing, and an SUV. Rankin relied heavily on income earned from commercial sex acts to fund his lifestyle.
U.S. v. Larrien Brown-Austin (5:20-cr-114). On May 24, 2022, Larrien Brown-Austin was sentenced to 15 years in prison and a lifetime of supervised release after he pleaded guilty to participating in a sex trafficking conspiracy that forced victims to perform sex acts in exchange for money.
According to court records, from June through August of 2018, Brown-Austin lived at a residence in Canton provided by his father that he used to facilitate commercial sex acts. In June of 2018, Brown-Austin met two victims and forced both to live at the residence, perform sex acts in exchange for money and provide him with the profits.
U.S. v. Holden Gallagher (3:18-cr-479). In March 2022, Holden Gallagher was sentenced to 30 years in prison and a lifetime supervised release after he pleaded guilty to sexual exploitation of a child, receipt, and distribution of child pornography, and possession of child pornography.
Court documents state that on July 31, 2015, law enforcement investigators obtained several electronic devices, including a laptop and hard drive, which contained numerous files of child pornography from Gallagher’s Sylvania area residence. Additionally, investigators determined that some of the images contained a depiction of a minor known to Gallagher and that Gallagher had corresponded with the minor victim and gotten the minor to produce images of child pornography.
In addition, to support the victims of human trafficking, various organizations in the Northern District of Ohio were awarded more than $5.7 million in grant funding in the previous fiscal year from the Department of Justice to provide services and aid, including:
- $2.5 million to The Cuyahoga County Sexual Assault Kit (SAK) Taskforce, led by the Cuyahoga County Prosecutor’s Office (CCPO).
- $799,355 awarded to Advocating Opportunity (AO) in Toledo to provide services, support, and advocacy for trafficked and exploited people.
- $399,084 awarded to the Rape Crisis Center in Akron to enhance existing anti-human trafficking work.
In February 2022, the Attorney General announced the release of the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888 or text 233733.
Columbus Man Sentenced to Prison for Trafficking Fentanyl, Methamphetamine, and Illegal Possession of a FirearmRead the Press Release
CLEVELAND – Patrick A. Anaya, 24, of Columbus, Ohio, was sentenced on Friday, January 6, 2023, to 12 ½ years in prison by U.S. District Judge Christopher A. Boyko after he pleaded guilty to possession with intent to distribute fentanyl, methamphetamine, and possession of a firearm during a drug trafficking crime.
"Law enforcement in this region and in Lorain County continue to fight against fentanyl dealers, drug traffickers, and violent criminals who intend to harm our communities,” said First Assistant U.S. Attorney Michelle M. Baeppler. “As we’ve shown time and time again, if you deal poison and illegally carry firearms in Lorain County or Northern Ohio, you may soon find yourself in prison.”
“Drug trafficking is one of the highest priorities of the FBI, nationally and across Northern Ohio,” said FBI Cleveland Special Agent in Charge, Gregory Nelsen. “We are committed to keeping our communities safe by finding, investigating, and dismantling drug trafficking organizations one person at a time. Today’s sentence represents the unwavering commitment by our federal, state, and local partners to see that nefarious criminals are off the streets and no longer a danger to the public.”
According to court documents, on January 11, 2022, law enforcement authorities arrested Anaya on an outstanding warrant while he was attempting to meet with a potential drug buyer. Authorities then searched Anaya and found that he possessed 1.4 kilograms of fentanyl and quantities of methamphetamine and cocaine. Authorities also found Anaya to be in possession of a handgun tucked into his waistband and a semiautomatic rifle in his vehicle.
This case was investigated as part of Operation Synthetic Opioid Surge (S.O.S.)., a joint law enforcement initiative that seeks to reduce the supply of deadly synthetic opioids and to identify wholesale distribution networks and international and domestic suppliers in Lorain County.
This case was investigated by the Elyria Police Department and the Cleveland Division of the FBI. This case was prosecuted by Assistant U.S. Attorney Robert J. Kolansky.
Cleveland Man Sentenced to 10 Years in Prison for Shipping Fentanyl Pills Through the U.S. MailRead the Press Release
CLEVELAND – Lance Tobias, 56, of Cleveland, Ohio, was sentenced on Thursday, January 5, 2023, to 10 years in prison and ordered to pay a $100,000 fine by U.S. District Judge John R. Adams after he pleaded guilty to his role in a conspiracy to ship fentanyl pills through the U.S. mail.
“Drug traffickers mistakenly believe that they can use the U.S. mail to move their deadly poison around the country and evade law enforcement,” said First Assistant U.S. Attorney Michelle M. Baeppler. “As this sentence demonstrates, using the mail system as a personal drug courier is a terrible idea, and it’s one that can land you in prison for a very long time.”
“Battling the distribution of synthetic opioids remains one of the U.S. Postal Inspection Services’ top priorities,” said Inspector in Charge Lesley Allison. “This sentencing should serve as a warning to anyone dealing in these dangerous and illegal substances that the U.S. Postal Inspection Service stands steadfast in our mission to protect the public and the Postal Service from this illegal and deadly activity.”
According to court documents, from March to May 2020, Tobias was part of a conspiracy that shipped fentanyl pills through the U.S. mail. On May 27, 2020, court documents state that Tobias knowingly shipped a box through the U.S. mail that contained nearly 300 grams of blue fentanyl pills with an “M30” marking from Culver City, California, to Cleveland, Ohio.
Tobias pleaded guilty to conspiracy to distribute and possess with intent to distribute fentanyl and distribution of fentanyl in July 2022.
This case was investigated by the United States Postal Inspection Service (USPIS) and was prosecuted by Assistant U.S. Attorney Margaret A. Sweeney.
Sandusky Man Charged with Threatening Law Enforcement and Unlawful Possession of Machine GunRead the Press Release
TOLEDO – A federal grand jury returned a six-count indictment charging Aron McKillips, 29, of Sandusky, Ohio, with five counts of interstate communication of threats and one count of unlawful possession of a machine gun.
The indictment against McKillips alleges that from September 2021 to July 2022, McKillips made at least five online threats to harm and/or kill law enforcement members. In addition, the indictment alleges that in September 2022, McKillips unlawfully possessed a machine gun, specifically, a drop-in auto sear that could convert an AR-15 semi-automatic rifle into a fully automatic machinegun.
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.
The investigation preceding the indictment was conducted by the Cleveland FBI, Toledo Resident Agency. This case is being prosecuted by Assistant United States Attorneys Michael J. Freeman and Gene Crawford.
Maple Heights Man Convicted of Possessing a Firearm as a FelonRead the Press Release
CLEVELAND – On Thursday, Jan. 5, 2023, a federal jury convicted Adolphus Philpot, 36, of Maple Heights, Ohio, of being a felon in possession of a firearm. Philpot was convicted following a two-day trial before U.S. District Judge Pamela A. Barker in Cleveland.
According to court documents and evidence presented at trial, on March 26, 2021, Philpot was arrested on an outstanding warrant for felonious assault, which stemmed from a January 2021 shooting. Following his arrest, law enforcement authorities began an investigation into information they had received regarding Philpot’s suspected possession of firearms.
Authorities later determined that Philpot had concealed two firearms belonging to him in a residence and had contacted associates to arrange for the firearms to be hidden from law enforcement. Philpot is prohibited from possessing a firearm due to previous convictions of domestic violence, aggravated assault, and drug trafficking in the Cuyahoga County Common Pleas Court.
This investigation was conducted by the Cleveland Division of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). This case is being prosecuted by Assistant United States Attorney Kelly L. Galvin.
Cleveland Woman Sentenced to Prison for Stealing Pension Benefits and Defrauding Government ProgramsRead the Press Release
CLEVELAND – Diane A. Mason, 52, of Cleveland, Ohio, was sentenced on Jan. 4, 2023, to two years in prison by U.S. District Judge Patricia A. Gaughan after she pleaded guilty to aggravated identity theft.
According to court documents, between January 2017 and October 2020, Mason stole $72,476 in Social Security Retirement Insurance benefits and $40,143.60 in monthly pension benefits from the Xerox Corporation, which were intended to be paid to another individual who had died.
Court documents state that Mason then devised a scheme to steal these benefits from the deceased’s bank accounts for her own use by impersonating the deceased to others on numerous occasions and obtaining a replacement debit card in the name of the deceased. At the same time, court documents show that since 2017, Mason received public housing and Supplemental Nutrition Assistance Program (SNAP) benefits.
In order to be eligible to receive benefits, Mason was required to report any and all income to the Cuyahoga County Department of Job and Family Services (CCDJFS) and the Cuyahoga Metropolitan Housing Authority (CMHA). Court documents show that Mason falsely stated that she received no income in order to qualify for these benefits when, in fact, she had been stealing Social Security and pension benefits.
In total, Mason stole $17,021 in SNAP benefits and $19,123.60 in public housing benefits.
In addition to the prison sentence, Judge Gaughan ordered Mason to pay a total of $165,606.20 in restitution.
This case was investigated by the Social Security Administration Office of the Inspector General (SSA OIG), United States Department of Labor (DOL), Employee Benefits Security Administration, the United States Department of Agriculture (USDA), and the United States Department of Housing and Urban Development (HUD).
This case was prosecuted by Special Assistant United States Attorney Jason W. White.
U.S. Attorney’s Office Warns Residents About Scam Calls Demanding MoneyRead the Press Release
CLEVELAND – The U.S. Attorney’s Office for the Northern District of Ohio is cautioning northern Ohio residents about a telephone spoofing campaign where the caller is portraying themselves as an attorney, representative, or law enforcement officer, and the phone number is showing as the Department of Justice or the U.S. Attorney’s Office.
During these calls, scammers may attempt to collect money from victims or threaten arrest or legal action. These calls are bogus and an attempt to use a legitimate law enforcement number to obtain money from victims.
Scammers use many tactics to sound and appear credible. They sometimes provide information like actual names of federal prosecutors and federal office addresses. They also spoof their phone numbers to appear on caller IDs as if they are calling from a government agency such as the U.S. Attorney’s Office.
The U.S. Attorney’s Office reminds the public to be vigilant and never share personal identifying information with a caller that you have not initiated contact with or have not verified as a legitimate business or organization.
The U.S. Attorney’s Office will never ask you to purchase a gift card or give out a credit card number to avoid arrest.
To report a call or message from someone portraying to be a representative of the U.S. Attorney’s Office or Department of Justice, please contact the Federal Trade Commission (FTC) at reportfraud.ftc.gov
U.S. Attorney’s Office Collects More Than $22 Million in Criminal and Civil Actions in Fiscal Year 2022Read the Press Release
CLEVELAND – The U.S. Attorney’s Office for the Northern District of Ohio collected $22,160,718.79 in criminal and civil actions in Fiscal Year 2022. Of this amount, $14,545,655.69 was collected in criminal actions, and $7,615,063.10 was collected in civil actions.
Additionally, the staff of the Northern District of Ohio worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $541,258.46 in cases pursued jointly by these offices. Of this amount, $29,391.47 was collected in criminal actions, and $511,866.99 was collected in civil actions.
“These figures represent monies returned to the United States through the hard work and outstanding effort of our employees and law enforcement partners,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Whether we are representing the United States in a criminal or a civil action, we will always seek to protect the financial interests of the U.S. and victims in resolving these cases.”
Notable collections and forfeitures in Fiscal Year 2022 include:
CRIMINAL
US v. John Lazuka: Lazuka offered his technical expertise in cryptocurrency to a death beneficiary who had inherited a significant amount of cryptocurrency but was unable to access it. Instead of recovering the cryptocurrency for the benefit of the decedent’s estate, Lazuka transferred the cryptocurrency to his own accounts. Lazuka pleaded guilty to wire fraud and restitution was ordered in the amount of $1,565,222.81 in February 2022. This amount was paid in full for the benefit of the victim.
US v. EO System Company, Ltd.: EO System Company Ltd. is a South Korean company in the business of developing high-quality electronic optical devices. EO System requested, and was denied, permission for an export license to ship an American rifle sight with an infrared detector. EO System obtained the rifle sights without the appropriate license and committed wire fraud in the process. EO System was fined $1,000,000 in November 2021. This amount was paid in full.
US v. Jorge A. Martinez, M.D.: Dr. Martinez was found guilty in 2006 of mail fraud, wire fraud, violations of the Controlled Substances Act, and health care fraud resulting in death. Martinez was sentenced to life imprisonment and was ordered to pay over $13,000,000 in restitution. In 2022, the United States collected $922,169.36 for the benefit of his victims through a garnishment proceeding.
CIVIL
Stein Hospice Service, Inc.: Stein Hospice Service, Inc., a Sandusky-based hospice provider, paid $479,796.25 to resolve allegations that it provided medically unnecessary hospice services to unqualified Medicare beneficiaries and billed Medicare at a higher level for hospice care than was medically necessary.
U.S. ex rel. Schmidt and Smith v. The Toledo Clinic, Inc., et al.: The Toledo Clinic, Inc. paid a total of $380,185.73 to resolve allegations that certain tests ordered for Medicare beneficiaries treated at the Cognitive Center at the Toledo Clinic were not reasonable and necessary because the tests were not ordered by either a physician or a non-physician practitioner.
U.S. ex rel. Higgins v. Tudor Therapies, Inc. dba Tudor Physical Therapy: Tu-Dor Home Therapies, Inc. paid $232,739.30 to resolve allegations that it billed Medicare and Ohio Medicaid for physical therapy services that were not provided by a licensed physical therapist or a physical therapy assistant acting under the supervision of a physical therapist.
The U.S. Attorneys’ Offices and the department’s litigating divisions are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.
While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
###
Ravenna CPA Charged with Embezzling More Than $1 Million from Employer and Submitting False Tax ReturnsRead the Press Release
CLEVELAND – Michael Harman, 45, of Ravenna, Ohio, was charged today in a six-count Bill of Information with devising a scheme to defraud his employer out of more than $1 million, money laundering, and submitting false tax returns to the IRS.
According to court documents, the defendant was a Certified Public Accountant (CPA) and was employed as a controller within his company. As a controller, some of the defendant’s responsibilities included processing payroll adjustments.
Court documents state that from 2016 to August 2020, the defendant devised a scheme to embezzle more than $1 million from his employer and used the funds for personal use, including child support payments in the State of New York and moving expenses. The defendant is accused of executing the scheme by using a series of unauthorized wire transfers, fictitious checks, and fraudulent charges on his employer’s credit cards.
In addition, the defendant is charged with failing to report income earned from the scheme on his tax returns for the tax years 2016, 2017, 2018, and 2019.
This case was investigated by the Cleveland FBI, Akron Resident Agency and IRS Criminal Investigation (CI). This case is being prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Aaron P. Howell.
Saudi Arabian National Charged with Illegally Exporting Rifle BarrelsRead the Press Release
CLEVELAND – A Saudi Arabian national residing in Cleveland Heights was charged in a one-count indictment with attempting to export more than 50 automatic and semi-automatic rifle barrels from the United States since April 2022.
Abdulrahman Zalah, 30, was charged with one count of smuggling goods from the United States.
According to court documents, in October 2022, federal authorities with the Cleveland Division of the FBI were contacted by a firearms manufacturer regarding the suspicious purchasing behavior of an individual later identified as the defendant.
Based on the information, authorities began an investigation into the matter and determined that the defendant, beginning in April 2022, had fraudulently exported and attempted to export and send more than 50 automatic and semi-automatic rifle barrels from the United States.
Court documents state that the defendant did not obtain an export license from the United States Department of Commerce, Bureau of Industry and Security (BIS) as required by law to export commodities, including firearms and firearm components, originating in 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 case was investigated by the Cleveland Division of the FBI and the Department of Homeland Security (DHS). This case is being prosecuted by Assistant U.S. Attorney Duncan T. Brown.
Akron Man Sentenced to More Than 10 Years in Prison for Dog Fighting, Drug Trafficking, and Illegal Possession of FirearmsRead the Press Release
AKRON – Ronald Smith, 39, of Akron, Ohio, was sentenced today to more than 10 years – or 123 months – in prison by U.S. District Judge John R. Adams after he pleaded guilty to a 22-count indictment charging him with dog fighting, drug trafficking, and illegal possession of a firearm.
In addition to the prison sentence, Judge Adams ordered Smith to pay $233,367.70 in restitution to K2 Solutions, located in North Carolina, for the care and rehabilitation of the impacted dogs.
Smith was charged in May 2022 with 15 counts of possession and training of dogs for the purposes of an animal fighting venture; conspiracy to distribute and possess with intent to distribute a controlled substance; distribution of a controlled substance; possession with intent to distribute a controlled substance and felon in possession of a firearm.
According to court documents, Smith owned and maintained two residential properties in Akron, one on Fultz Street and the other on Herman Avenue.
In April and May of 2022, authorities found Smith to be in possession of items used to train and prepare dogs for participation in dog fighting, including two treadmills designed for dogs; a caged rabbit placed in front of a treadmill; performance-enhancing and first-aid-related dog medication; numerous "break sticks" spattered with blood and baring teeth marks and a walled pit spattered with blood at the Fultz Street and Herman Avenue residence.
Authorities recovered eight pit bull-type dogs from the Fultz Street residence and seven pit bull-type dogs from the Herman Avenue residence.
Smith was also found to have illegally possessed three firearms and participated in a conspiracy to distribute and possess oxycodone, fentanyl, and fentanyl analogues.
Smith is prohibited from possessing a firearm due to previous convictions of aggravated assault, burglary, possession of cocaine, trafficking heroin, having weapons under disability, and disrupting public services in the Summit and Medina County Courts of Common Pleas.
This case was investigated by the Drug Enforcement Administration (DEA), U.S. Department of Agriculture Office of Inspector General (USDA OIG), Akron Police Department, and the Summit County Sheriff's Office. Assistance was provided by the United States Marshals Service (USMS) and the Humane Society of Summit County (HSSC).
This case is being prosecuted by Assistant U.S. Attorneys Brad J. Beeson and Marc D. Bullard.
Three Former Toledo City Council Members Plead Guilty to Conspiracy and Bribery ChargesRead the Press Release
TOLEDO - Three former Toledo City Council members pleaded guilty today to accepting bribery payments during their time in office in return for their support and votes on legislative matters.
Tyrone Riley and Larry Sykes both pleaded guilty to one count of Hobbs Act extortion under color of official right, and Yvonne Harper pleaded guilty to one count of Hobbs Act conspiracy.
Garrick Johnson was also charged in this matter and is scheduled to appear in front of a federal jury on Monday, Jan. 9, 2023.
According to court documents, on multiple occasions from May 2018 through February 2020, Riley, Harper, and Sykes accepted bribery payments in return for their official support and votes on legislative matters as members of the Toledo City Council.
Court documents state that Riley, Harper, and Sykes each accepted cash payments in return for their support and votes on zoning changes and “special use permits” (SUPs) for local businesses.
Court documents show that during this time, Riley accepted more than $5,000 in payments and meals in return for his support on five occasions related to zoning changes and SUPs for businesses. Additionally, on two occasions, Harper accepted more than $5,000 in return for her support of zoning changes and SUPs for businesses. Sykes accepted, on two occasions, approximately $1,500 for his support of SUPs.
Riley, Harper, and Sykes are scheduled to be sentenced in June 2023.
This case was investigated by the Cleveland Division of the FBI, Toledo Resident Agency. This case is being prosecuted by Assistant U.S. Attorneys Michael J. Freeman and Jody L. King.
Cleveland Man Charged with Carjacking, Illegally Entering Airport Runway, and Damaging Radar FacilityRead the Press Release
CLEVELAND – A Cleveland man was charged today in a six-count indictment with intentionally damaging a Cleveland Hopkins International Airport (CLE) radar facility, carjacking two vehicles, and using one to breach a gate and illegally enter the Hopkins airport runway.
Isaac Woolley, 26, was officially charged in the indictment with one count of entering aircraft or an airport area in violation of security requirements, one count of violence at international airports, two counts of destruction of aircraft or aircraft facilities, and two counts of carjacking.
According to court documents, on Nov 23. 2022, the defendant unlawfully entered a secure area maintained by the Federal Aviation Administration (FAA) and caused damage to the main CLE radar antenna tower. As a result, court documents state that the primary radar system utilized by the FAA to monitor civilian and commercial air traffic for CLE was inoperable for a period of time.
Later that day, the defendant is accused of stealing a vehicle from a victim in Fairview Park, Ohio, and using it to breach the gate at CLE. Law enforcement authorities responded to the incident and then arrested the defendant. Court documents state that due to the defendant’s alleged actions, a decision was made by airport personnel to shut down the airport runway and temporarily suspend operations.
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 Division of the FBI, Fairview Park Police Department, Cleveland Division of Police, and the Brookpark Police Department. This case is being prosecuted by Assistant U.S. Attorneys Brian S. Deckert and Daniel J. Riedl.
Correctional Officer Pleads Guilty to Accepting Bribes and Smuggling Contraband into NEOCCRead the Press Release
CLEVELAND – A Northeast Ohio Correctional Center (NEOCC) correctional officer pleaded guilty on Wednesday, Dec. 14, 2022, to accepting bribes in return for supplying marijuana, tobacco, and narcotics to inmates at the facility.
According to court documents, from February 2017 to July 2019, Terry Terrigno, 30, of Canfield, Ohio, maintained a post-office box and regularly received portions of tobacco, marijuana, and Suboxone through the mail from the associates of inmates entrusted to his care.
Court documents state that Terrigno then smuggled the contraband into the NEOCC and redistributed it to the inmates in his care. In return, Terrigno received electronic bribery payments made through a mobile phone application.
In total, Terrigno received more than $8,650 in bribery payments.
This case was investigated by the Department of Justice Office of the Inspector General (DOJ OIG) and the Cleveland FBI. This case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould.
Lorain Man Sentenced to More Than 11 Years in Prison for Role in Fentanyl Trafficking ConspiracyRead the Press Release
CLEVELAND – Juan Torres Saez, 39, of Lorain, Ohio, was sentenced on Thursday, Dec. 8, 2022, to more than 11 years in prison – or 135 months – by U.S. District Judge Christopher A. Boyko after Saez pleaded guilty to his role in a conspiracy to possess and distribute fentanyl sent through the United States mail.
According to court documents, on Feb. 11, 2022, law enforcement authorities with the United States Postal Inspection Service (USPIS) obtained and executed search warrants for two packages suspected of containing narcotics. Inside the packages, officers found approximately 2 kilograms – or more than 4 pounds – of fentanyl.
Court documents state that authorities with the USPIS, Drug Enforcement Administration (DEA), Lorain County Drug Task Force, and the Lorain Police Department began an investigation into the origins and destination of the packages and determined that both were intended to be delivered to Saez at an address in Lorain.
Saez was later arrested on Feb. 14, 2022.
Saez pleaded guilty in August 2022 to conspiracy to distribute and possess with intent to distribute controlled substances, attempted possession with intent to distribute controlled substances, and use of a communication facility in the commission of a drug trafficking crime.
This case was investigated by the USPIS, DEA, Lorain County Drug Task Force, and the Lorain Police Department. This case was prosecuted by Assistant U.S. Attorney Robert J. Kolansky.
This case was investigated as part of Operation Synthetic Opioid Surge (S.O.S.)., a joint law enforcement initiative that seeks to reduce the supply of deadly synthetic opioids and to identify wholesale distribution networks and international and domestic suppliers.
Michigan Man Charged with Operating Check-Kiting Scheme that Caused Loss of Nearly $150 MillionRead the Press Release
CLEVELAND – Najeeb Khan, 69, of Edwardsburg, Michigan, was charged in a Bill of Information today with operating a long-running check-kiting scheme that caused a financial loss of nearly $150 million to businesses around the country and KeyBank in the Northern District of Ohio.
The Bill of Information charges Khan with one count of bank fraud and one count of attempted tax evasion.
According to court documents, Khan owned and operated Interlogic Outsourcing Inc. (IOI), a payroll processing company that, at one point, provided services to approximately 6,000 clients.
Beginning in 2014, Khan operated a check-kiting scheme using his company’s business bank accounts to fraudulently obtain funds from various financial institutions, including KeyBank. Khan is accused of using these funds to support the growth of his payroll processing business and fund his lifestyle, which included the purchase of automobiles, aircraft, and vacation homes.
As part of his scheme, Khan wrote checks and made wire transfers between accounts under his control at various banks, a type of fraud commonly known as check-kiting. In a check-kiting scheme, checks are continually written back and forth to fraudulently inflate account balances deceiving banks into honoring checks written with insufficient funds.
According to the Bill of Information, Khan wrote checks from IOI accounts at Lake City Bank for deposit into IOI accounts at KeyBank and then wrote checks from IOI accounts at Berkshire Bank for deposit into IOI accounts at Lake City Bank. To cover the check funds issued from Berkshire Bank, Khan is accused of wiring funds from IOI accounts at KeyBank to IOI accounts at Berkshire Bank.
As part of the scheme, Khan is accused of diverting money from the check-kite to personal and other business accounts.
As a result, Khan caused a total financial loss of nearly $150 million.
Khan was also charged with failure to report income gained from the check-kiting scheme on his annual tax return for the tax years 2014-2017.
This case was investigated by the Cleveland FBI and IRS Criminal Investigations (CI). This case is being prosecuted by Assistant U.S. Attorneys Alejandro A. Abreu and Chelsea S. Rice.
###
Ukrainian National Charged with Acting as Courier in Scheme that Stole More Than $200k from VictimRead the Press Release
CLEVELAND - A Ukrainian national, whose last known address was in New York, was charged on Wednesday, Nov. 30, 2022, in a one-count indictment with acting as a money courier for scammers who stole more than $200,000 from a victim in Brunswick, Ohio.
Taras Semuso, 33, was officially charged with one count of wire fraud.
According to court documents, from June 2022 to August 2022, the victim was contacted by a member of the conspiracy claiming to be a government agent and that the victim’s bank accounts had been compromised. It is alleged that the conspirator then informed the victim that they were required to provide United States currency to an undercover agent, later identified as the defendant, to keep the victim’s bank account funds safe.
Court documents state that the victim and the defendant then met on several occasions in which the victim provided the defendant with more than $200,000 in cash. Court records allege that the defendant collected the money from the victim, used a cell phone to send confirmation to co-conspirators that the money was collected and provided the cash to other co-conspirators.
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 and in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Cleveland FBI and is being prosecuted by Assistant United States Attorney Colleen Egan.
###
Arizona Man Charged with Shipping More Than 1 Kilogram of Fentanyl Pills Through the U.S. MailRead the Press Release
CLEVELAND – An Arizona man was charged on Wednesday, Nov. 30, 2022, in a six-count superseding indictment related to his role in a drug trafficking conspiracy that sought to distribute and possess over 1 kilogram of fentanyl tablets designed to look like oxycodone pills in the Northern Ohio area.
Solomon Odubajo, 37, of Tempe, Arizona, was officially charged in the superseding indictment with conspiracy to distribute and possess with intent to distribute fentanyl, interstate travel in aid of racketeering, attempted possession with intent to distribute fentanyl, possession with intent to distribute fentanyl, possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm and ammunition.
Odubajo’s co-conspirator in the drug trafficking scheme, Laysalle Scales, 24, of Cleveland, Ohio, previously pleaded guilty in July 2022 to one count of conspiracy to distribute and possess with intent to distribute fentanyl and was sentenced to 70 months in prison.
According to court documents, in April 2022, Postal Inspectors with the United States Postal Inspection Service (USPIS) obtained a search warrant for a parcel suspected of containing drugs that had been mailed from Arizona to a residence in Garfield Heights, Ohio. Investigators searched the package and found it to contain over 1 kilogram of fentanyl tablets designed to look like oxycodone pills.
Authorities launched an investigation into the origins of the parcel and determined that Odubajo had mailed it from Arizona and then traveled to Ohio to retrieve it. During his arrest, Odubajo was found to be in possession of a firearm, and evidence confirmed that Odubajo’s DNA was also present on the firearm. Odubajo is prohibited from possessing a firearm due to a previous conviction for drug trafficking in the Cuyahoga County Court of Common Pleas.
The case against Odubajo is scheduled to be tried before a federal jury on March 20, 2023.
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 and in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by United States Postal Inspection Service (USPIS), with assistance from the Drug Enforcement Administration (DEA). This case is being prosecuted by Assistant United States Attorney James P. Lewis.
###
Mogadore Man Sentenced to Prison for Threatening to Retaliate Against WitnessRead the Press Release
CLEVELAND – Andrew F. Dodson, 33, of Mogadore, Ohio, was sentenced today to more than four years – or 55 months – in prison by U.S. District Judge Donald C. Nugent. Judge Nugent pronounced the sentence after Dodson was convicted by a federal jury on July 27, 2022, of obstructing justice by retaliating against a witness.
“Threatening a witness is a serious offense and, as evident by this sentence, it is a crime that can lead to significant time in a federal prison,” said First Assistant U.S. Attorney Michell M. Baeppler. “Ensuring the safety of federal witnesses is a critical part of the mission of the Justice Department.”
“The FBI is committed to safeguarding witnesses upholding their civic responsibility. Today’s sentence serves as a message to others who believe they can skirt the law and subvert the judicial process without implication,” said FBI Cleveland Special Agent in Charge Gregory Nelsen.
According to court records and evidence presented at trial, in July 2021, federal authorities began an investigation into Dodson following his arrest for OVI and possession of chemicals that could be used to make explosive devices. During the arrest and the impounding of his vehicle, court documents state that authorities discovered a large cache of explosive precursors and a black tactical bag with the words “POLICE” on it containing ear protection and safety glasses.
Authorities later obtained records that showed Dodson had purchased approximately 50 pounds of explosive materials. Court documents state that Dodson claimed that these materials were used to make smoke bombs.
During the investigation, federal authorities obtained records that showed Dodson engaged in online conversations with others, including one conversation in which he stated that “people call me the Unabomber.” Dodson also sent a user a photograph of 157 improvised explosive devices, screenshots of a remote detonator and 12 radio antenna devices. Court documents state that Dodson told other users in online conversations that he had improvised explosive devices that contained approximately 1,000 BBs per device and later tried to sell users body armor and a flamethrower.
On August 4, 2021, FBI agents executed a search warrant at Dodson’s Mogadore area residence and seized various items, including a tactical vest, a firearm, ammunition and a black flame thrower. Authorities also searched a storage unit in Akron belonging to Dodson and seized several gas masks, a shirt with a swastika, a detonator with the remote, a box of pyrotechnic signal shells, fusing with safety igniters and a bag of pyrotechnic fuses. Dodson was later arrested.
During the investigation, court documents state that it was determined that Dodson had lied to federal authorities, and he subsequently pleaded guilty in October 2021 to making false statements to an agency of the United States.
Court records show that Dodson was allowed to remain on bond and in the community following his guilty plea. During this time, Dodson came into possession of a witness statement given to federal authorities during the prior investigation. Court records state that Dodson then contacted and threatened the witness with the intent to retaliate due to the witness’s cooperation.
Dodson’s sentence of 55 months will be served consecutive to his previous sentence of 8 months for making false statements.
This case was investigated by the Cleveland FBI and was prosecuted by Assistant U.S. Attorneys Brian S. Deckert and Jason W. White.
Toledo Man Sentenced to More Than 21 Years in Prison for Receipt and Distribution of Thousands of Files of Child PornographyRead the Press Release
TOLEDO – Thomas K. Tetreau, 48, of Toledo, Ohio, was sentenced on Monday, Nov. 21, 2022, to more than 21 years in prison by U.S. District Judge Jeffrey J. Helmick after Tetreau pleaded guilty to two counts of receipt and distribution of child pornography.
According to court documents, on Aug. 10, 2021, law enforcement authorities with the United States Secret Service (USSS) executed a search warrant at Tetreau’s Toledo-area residence after an investigation determined that Tetreau had shared numerous files of child pornography over the internet. During the execution of the warrant, authorities seized multiple electronic devices from Tetreau’s residence, including a desktop computer and hard drives that were later found to contain over 220 videos and over 5,600 images of child pornography.
At sentencing, prosecutors raised Tetreau’s criminal history of sexually abusing minors as relevant information for the Court to consider, which includes two separate convictions in the Lucas County Court of Common Pleas for attempted gross sexual imposition of a minor.
This case was investigated by the United States Secret Service (USSS) and was prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman.
Cleveland Man Sentenced to Seven Years in Prison for Assaulting Mail Carrier with a FirearmRead the Press Release
AKRON – A Cleveland man was sentenced on Monday, Nov. 21, 2022, to seven years and one day in prison by U.S. District Judge Sara Lioi after he pleaded guilty to assaulting a U.S. Postal Service (USPS) mail carrier and crashing the carrier’s vehicle.
“This defendant used a deadly weapon to commit a violent crime against a mail carrier simply trying to do their job,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Violent actions like this will not be tolerated in our communities, and we will continue to seek severe penalties for similar behavior.”
“The safety and well-being of Postal Service employees has always been a top priority for the U.S. Postal Inspection Service,” said Postal Inspector In Charge Lesley Allison. “This sentence is a perfect example of the steadfast commitment to keeping the heroes who serve our communities safe while performing their duties.”
According to court documents, on June 21, 2021, Quentell Allen, 27, approached a USPS employee, who was delivering mail on an official route, brandished a pistol at the carrier’s head and demanded that the carrier exit the vehicle. Allen then physically removed the carrier from the vehicle, entered the driver’s seat and purposefully drove it into another vehicle.
Allen pleaded guilty to one count of forcibly assaulting an officer/employee of the United States and one count of brandishing a firearm during and in relation to a crime of violence in July 2022.
This case was investigated by the United States Postal Inspection Service (USPIS) and was prosecuted by Assistant U.S. Attorneys Kelly L. Galvin and Margaret A. Kane.
Cleveland Man Charged with Distributing Narcotics that Led to Fatal OverdoseRead the Press Release
CLEVELAND – A Cleveland man was charged in a superseding indictment with distributing narcotics that led to the overdose death of another individual in January 2022.
The superseding indictment charges Rubin Austin, 54, with distributing a heroin, fentanyl and fluorofentanyl mixture to a victim in January 2022 who later ingested the substance, suffered an overdose and died as a result.
The superseding indictment also charges Austin with additional counts of distribution of heroin, fentanyl, fluorofentanyl and cocaine base (crack); possession with intent to distribute of heroin, fentanyl, fluorofentanyl and cocaine base (crack) and use of a communications facility to facilitate a drug trafficking offense.
According to court documents, in January 2022, officers with the Cleveland Division of Police responded to a residence for reports of an overdose death. At the scene, officers began an investigation into the incident and determined that the deceased had allegedly purchased narcotics from an individual identified as Defendant Austin.
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 and in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Cleveland FBI and the Cleveland Division of Police. This case is being prosecuted by Assistant United States Attorneys Elizabeth M. Crook and Payum Doroodian.
Jury Finds Three Guilty of Trafficking Narcotics Throughout Toledo AreaRead the Press Release
TOLEDO – A federal jury today convicted Antuan Wynn, 47, of Toledo, Ohio, Marquise Figures, 37, of Wayne, Ohio, and Christopher Simpson, 31, of Toledo, Ohio, of participating in a drug trafficking conspiracy that distributed large quantities of cocaine, cocaine base (crack) and fentanyl throughout the Toledo area.
Wynn, Figures and Simpson were convicted of participating in a conspiracy to possess with intent to distribute and distribution of controlled substances and use of a cell phone to facilitate a drug trafficking felony following a seven-day trial before U.S. District Judge Jack Zouhary in Toledo.
According to court documents and evidence presented at trial, from December 2019 to November 2021, Wynn, Figures and Simpson were part of a larger drug trafficking organization that possessed and distributed quantities of at least 5 kilograms of cocaine, at least 400 grams of fentanyl and quantities of crack cocaine throughout the Toledo area.
Evidence presented during the trial showed that Defendant Wynn supplied co-conspirator Anthony Duff with substantial quantities of cocaine, which Duff then redistributed to other conspiracy members, including Defendant Figures.
In addition, prosecutors presented evidence that Defendant Simpson supplied other members of the conspiracy with quantities of fentanyl intended to be redistributed.
According to court documents, the three defendants used cell phones to communicate and facilitate their drug trafficking activity. In order to conceal their identity from law enforcement, court documents state that the defendants and other co-conspirators obtained cell phones using fictitious names, the names of others or no names at all.
Court documents also showed that the conspirators used various locations around the Toledo area to distribute, store, break down and package narcotics and the proceeds generated from the sale of narcotics.
Wynn, Figures, and Simpson were charged along with 19 other co-conspirators, the rest of whom pleaded guilty to their involvement.
Wynn, Figures, and Simpson will be sentenced at a later date.
This case was investigated by the Toledo Resident Agency of the Cleveland 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 Toledo Resident Agency of the Cleveland FBI, Toledo Police Department, Sylvania Township Police Department and the Oregon Police Department.
The Toledo Metro Drug Task Force is comprised of the Toledo Resident Agency of the Cleveland FBI, Toledo Police Department, Bureau of Criminal Investigations (BCI), 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 Toledo Resident Agency of the Cleveland FBI, Toledo Police Department and the Lucas and Wood County Sheriff’s Offices.
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 is being prosecuted by Assistant United States Attorneys Alissa M. Sterling, Robert N. Melching and Henry F. DeBaggis.
Cleveland Man Sentenced to Prison for Shipping More Than 2 Kilograms of Fentanyl Pills Through the U.S. MailRead the Press Release
AKRON – Larrie Ladell Campbell, 35, of Cleveland, was sentenced on Wednesday, Nov. 16, 2022, to more than 12 years – or 151 months – in prison by U.S. District Judge John R. Adams after he pleaded guilty to mailing over 2 kilograms of fentanyl pills from Phoenix to Cleveland.
According to court documents, on May 10, 2022, a Postal Inspector with the United States Postal Inspection Service (USPIS) identified a suspicious package shipped from Phoenix to an address in Cleveland. Authorities executed a search warrant for the package and found it to contain approximately 2.2 kilograms of pressed fentanyl pills.
Authorities then began an investigation into the origins of the package and identified Campbell as the owner. During the investigation, authorities learned that Campbell had mailed the package from a post office in Phoenix and then traveled to Cleveland to retrieve it.
Campbell pleaded guilty to interstate travel in aid of racketeering and attempted possession of fentanyl with intent to distribute in July 2022.
This case was investigated by the USPIS with assistance from the Drug Enforcement Administration (DEA). This case was prosecuted by Assistant U.S. Attorney James P. Lewis.
Correctional Officer Charged with Accepting Bribes and Smuggling Contraband into NEOCCRead the Press Release
CLEVELAND – A Northeast Ohio Correctional Center (NEOCC) correctional officer was charged on Nov. 14, 2022, in a four-count Information for his role in a scheme to smuggle contraband into the NEOCC in return for bribery payments.
Terry Terrigno, 30, of Canfield, Ohio, was charged with one count each of providing narcotics, marijuana and tobacco to inmates and one count of accepting bribes.
According to court documents, from February 2017 to July 2019, Terrigno allegedly smuggled suboxone, marijuana and tobacco to NEOCC prison inmates in return for electronic bribery payments made through a mobile phone application.
An Information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it is 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 offenses 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.
This case was investigated by the Cleveland FBI and the Department of Justice Office of the Inspector General (DOJ OIG). This case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould.
Former Trumbull County Clerk of Courts Employee Pleads Guilty to Distributing CocaineRead the Press Release
CLEVELAND – Lisa Crusan, 41, of Warren, Ohio, pleaded guilty today to selling approximately four ounces of cocaine in transactions conducted by law enforcement authorities.
Crusan, a former employee of the Trumbull County Clerk of Courts, pleaded guilty to three counts of distribution of cocaine before U.S. District Judge Pamela A. Barker in Cleveland. Crusan is scheduled to be sentenced on March 15, 2023.
According to court documents, on three separate occasions in June and July 2022, Crusan sold a total of approximately four ounces of cocaine in controlled purchases conducted by the Mahoning Valley Law Enforcement Task Force (MVLETF). Crusan was arrested in September 2022.
This case was investigated by Homeland Security Investigations (HSI) and the MVLETF. This case is being prosecuted by Assistant United States Attorney Peter E. Daly.
Cleveland Man Convicted of Possession with Intent to Distribute MethamphetamineRead the Press Release
AKRON – A federal jury on Wednesday, Nov. 9, 2022, convicted James Dailey, 34, of Cleveland, Ohio, of possession with intent to distribute methamphetamine, as well as possession of other controlled substances. Dailey was convicted following a three-day trial before U.S. District Judge John R. Adams in Akron.
According to court documents and evidence presented at trial, on Feb. 4, 2021, officers with the Cleveland Division of Police, Gang Impact Unit observed three individuals, one later identified as Dailey, exit a house suspected of being a drug premise. Authorities witnessed Dailey enter a vehicle and later attempted to perform a traffic stop; however, the vehicle fled the scene at a high rate of speed.
The next day, Feb. 5, 2021, authorities found the same vehicle from the day before parked at a gas station. Authorities then observed Dailey enter the driver’s seat of vehicle. Officers approached the vehicle, saw narcotics in view and placed Dailey under arrest. In a subsequent search of Dailey and the vehicle, authorities found Dailey to be in possession of quantities of methamphetamine, heroin, cocaine base (crack), fentanyl, fentanyl analogues and cocaine.
Dailey is scheduled to be sentenced on Feb. 22, 2023.
This case was investigated by the Cleveland Division of the FBI and the Cleveland Division of Police. This case is being prosecuted by Assistant U.S. Attorneys Patrick P. Burke and Segev Phillips.
Cleveland Man Convicted of Possessing a Firearm and Ammunition as a FelonRead the Press Release
CLEVELAND – A federal jury on Wednesday, Nov. 9, 2022, convicted Dion Baker, 27, of Cleveland, Ohio, of being a felon in possession of a firearm and ammunition following a two-day trial before U.S. District Judge Pamela A. Barker in Cleveland.
According to court documents and evidence presented at trial, on Sept. 17, 2021, law enforcement authorities with the Ohio Investigative Unit were conducting an arrest of an unrelated individual for weapons violations at a convenience store in Cleveland. During the arrest, authorities observed two individuals, one later identified as Baker, parked in a vehicle and drinking liquor.
Authorities approached the vehicle and noted open cups of liquor and marijuana inside. Baker and the other individual were then detained, and the vehicle was searched. During the search, authorities located a loaded firearm under the passenger seat where Baker was seated. An investigation into the incident later confirmed that Baker was the owner of the firearm.
Baker is prohibited from possessing a firearm due to a previous felony conviction of attempted felonious assault in the Cuyahoga County Common Pleas Court.
Baker is scheduled to be sentenced on March 1, 2023.
This case was investigated by the Cleveland Division of the FBI and the Ohio Investigative Unit of the Ohio Department of Public Safety. This case is being prosecuted by Assistant U.S. Attorney Scott C. Zarzycki.
Cleveland Man Sentenced to Prison for Setting Fire to Van During May 2020 Demonstrations and UnrestRead the Press Release
CLEVELAND – A Cleveland man was sentenced today to 41 months in prison by U.S. District Judge Solomon Oliver, Jr. after he pleaded guilty to maliciously setting fire to a Cuyahoga County Department of Public Works van on May 30, 2020, during demonstrations and civil unrest in downtown Cleveland.
According to court documents, on May 30, 2020, Martino Jamel Andrews, 24, and others sought to vandalize and set fire to a van owned by the Cuyahoga County Division of Public Works near the Justice Center in downtown Cleveland following a demonstration to protest the death of George Floyd in Minneapolis, Minnesota.
Court documents state that Andrews and others first vandalized the van by striking it with a baseball bat before using a rag to start a fire inside the van. Evidence in the record showed Andrews taking the burning rag, stuffing it into the vehicle’s fuel tank, watching the van erupt into flames, and posing for pictures near the burning wreckage. Court documents state that the vehicle ended up completely engulfed in flames, destroyed, and unsalvageable.
Investigators later identified Andrews thanks, in part, to tips received from the public after images and video were released to the media.
As part of the sentencing, Judge Oliver ordered Andrews to pay $3,721.88 in restitution to the Cuyahoga County Department of Public Works.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Cleveland Division of Police. This case is being prosecuted by Assistant U.S. Attorney Adam J. Joines.
Cleveland Man Sentenced to Prison for COVID-19 Loan Fraud and Illegal Possession of a FirearmRead the Press Release
CLEVELAND – Demetrius Moore, 42, of Cleveland, Ohio, was sentenced on Friday, Oct. 28, 2022, to three and a half years in prison by U.S. District Judge Pamela A. Barker and was ordered to pay $183,215.47 in restitution to the Small Business Administration (SBA). Judge Barker pronounced the sentence after Moore pleaded guilty to his role in a scheme to defraud the (SBA) by unlawfully acquiring Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loan funding.
Moore previously pleaded guilty to one count of theft of government funds, two counts of wire fraud and one count of being a felon in possession of a firearm.
According to court documents, between July 2020 and March 2021, Moore devised and participated in a scheme to defraud the SBA by obtaining PPP and EIDL loans through false and fraudulent pretenses and spent loan funding on personal expenses, such as a Rolex watch, a Volvo Sleeper Truck Tractor and retail purchases at Best Buy and Louis Vuitton.
As part of the scheme, in July 2020, Moore opened a business bank account in the name of a purported investment company with no legitimate business operations and no employees. Moore and an unnamed coconspirator then used that bank account to apply for and receive PPP and EIDL loans.
Court documents state that Moore provided false and fictitious information on his PPP and EIDL loan applications, including declaring that his company had 10 employees and substantial annual revenues when, in fact, it had neither. As a result of these fraudulent loan applications, Moore received $183,215.47 in funding from both the PPP and EIDL. After the funds were deposited into his bank account, Moore then used the funds to make personal purchases.
On Nov. 19, 2020, during the execution of a search warrant, authorities found Moore to be in possession of a firearm. Moore is prohibited from possessing a firearm due to previous drug trafficking and firearms offense convictions in the United States District Court and the Cuyahoga County Court of Common Pleas.
At the time of the offense conduct, Moore was on federal supervised release for some of these violations.
This case was investigated by IRS Criminal Investigations (CI) and the Drug Enforcement Administration (DEA) . This case was prosecuted by Assistant United States Attorneys Margaret A. Sweeney, Elliot D. Morrison and Alejandro A. Abreu.
The Coronavirus Aid, Relief, and Economic Security ("CARES") Act was a federal law enacted in or around March 2020 and was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. Under the CARES Act, the SBA provided financial assistance, in part, via the EIDL and PPP program to businesses negatively affected by the COVID-19 pandemic.
Hudson Physician and Ohio Pharmaceutical Rep Plead Guilty to Roles in Prescription Drug Kickback ConspiracyRead the Press Release
AKRON - Deepak Raheja, 66, of Hudson, Ohio, and Frank Mazzucco, 44, of Dublin, Ohio, pleaded guilty on Monday, Oct. 31, 2022, to their roles in a pharmaceutical kickback conspiracy in which Raheja, a licensed Ohio physician, wrote prescriptions for a drug to patients that did not have the condition in exchange for money and other items of value.
Raheja and Mazzucco both pleaded guilty to one count of conspiracy to solicit, receive, offer and pay health care kickbacks before U.S. District Judge Sara Lioi.
According to court documents, Raheja was a physician who specialized in psychiatry and neurology, practicing in Cleveland, Ohio. Mazzucco was employed by Avanir Pharmaceuticals as a regional business manager tasked with supervising pharmaceutical sales representatives in the region where Raheja 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.
Court documents state that between February 2011 and July 2016, Raheja, Mazzucco and other codefendants conspired together to increase the number of prescriptions Raheja and other coconspirators wrote for Nuedexta in exchange for the payment of monetary kickbacks and other items of value.
According to court documents, 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. Raheja received approximately $1,500 each for these purported presentations.
In total, court documents state that Raheja received approximately $331,550 in payments from Avanir between October 2011 and April 2016. During this time, Raheja wrote approximately 10,088 Nuedexta prescriptions – the highest in the country.
As part of the conspiracy, Mazzucco and other codefendants incentivized physicians, including Raheja, 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 show that Raheja and the other codefendants 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.
As part of the terms of the plea agreement, defendant Raheja has agreed to a sentence of 30 months in prison, surrendering his medical license, at least $1,178,460.40 million in restitution and a fine to be determined.
Raheja is scheduled to be sentenced on Feb. 3, 2023, and Mazzucco is set to be sentenced on Feb. 15, 2023, before U.S. District Judge Sara Lioi.
This case was investigated by the Cleveland FBI, Health and Human Services – Office of Inspector General (HHS OIG) and the Ohio Attorney General’s Healthcare Fraud Section. This case is being prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Megan R. Miller.
Cleveland Man Charged with 10 Armed Robberies in Cleveland and Shaker HeightsRead the Press Release
CLEVELAND – A Cleveland man was charged today in a 14-count indictment with the armed robbery or attempted armed robbery of 10 retail stores in Cleveland and Shaker Heights over the course of three weeks.
Lawrence Sturdivant, 32, was charged with 10 counts of interference with commerce by robbery; three counts of using, carrying or brandishing a firearm during and in relation to a crime of violence and one count of being a felon in possession of ammunition.
According to court documents, from Dec. 5 to Dec. 26, 2021, the defendant is accused of robbing or attempting to rob nine Walgreens, Family Dollar and CVS stores in Cleveland and a Walgreens in Shaker Heights. In each instance, it is alleged that the defendant would enter the store and use a firearm to threaten, intimidate and coerce the cashiers into giving him money from the register drawers.
During the robberies, the defendant was on parole for an aggravated robbery conviction from 2014. As a felon, the defendant is prohibited from possessing a firearm and ammunition.
An indictment is only a charge and is not evidence of guilt. The 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 offenses 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.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Cleveland Division of Police and the Shaker Heights Police Department. This case is being prosecuted by Assistant U.S. Attorney Adam J. Joines.
###
Celina Man Charged with Creating Animal Crushing Video and Possession and Transportation of Child PornographyRead the Press Release
TOLEDO - Lucas Russell Vanwoert, 25, of Celina, Ohio, was charged today in a four-count indictment with possession and transportation of child pornography, transportation of obscene materials and creating an animal crush video.
According to court documents, on August 28, 2022, Vanwoert allegedly created and intended to distribute an animal crush video. An animal crush video is defined as any photograph, motion picture, film, video or digital recording, or electronic image that depicts actual conduct in which one or more living non-human mammals, birds, reptiles, or amphibians is intentionally crushed, burned, drowned, suffocated, impaled or otherwise subjected to serious bodily injury, or bestiality and is obscene.
On September 26, 2022, authorities executed a search warrant at Vanwoert’s residence in Celina and seized several electronic devices that were later found to contain videos of child pornography, which involved prepubescent children, as well as animal crush videos.
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 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 and in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by Homeland Security Investigations (HSI). This case is being prosecuted by Assistant United States Attorney Sara Al-Sorghali and First Assistant U.S. Attorney Michelle M. Baeppler.
Member of 8Ave Street Gang Sentenced to More Than 12 Years in Prison After Conviction of Distributing Narcotics and Illegal Possession of FirearmRead the Press Release
CLEVELAND – Kindell Smith, 32, of Cleveland, was sentenced today to more than 12 years – or 146 months – in prison by U.S. District Judge Pamela A. Barker. Judge Barker pronounced the sentence after Smith, a member of the “8Ave” street gang known to operate in the city of Cleveland’s 5th District, was convicted of participating in a conspiracy to distribute fentanyl, crack cocaine and illegal possession of a firearm.
According to court documents and evidence presented at trial, on April 14, 2020, law enforcement officers with the Southeast Area Law Enforcement (SEALE) began an investigation into the suspected drug trafficking activities of Smith. As part of the investigation, authorities encountered Smith distributing fentanyl and cocaine near the 3200 block of Central Avenue in Cleveland.
On May 19, 2020, authorities again encountered Smith, this time with codefendants Darrell Douglas and Dreshawn Maddox, who each have been convicted and sentenced on a prior date, distributing fentanyl from a vehicle. During this encounter, authorities approached the vehicle and ordered the occupants to show their hands. The vehicle then sped away from the scene and struck the driver’s side of a law enforcement vehicle.
Officers removed the occupants from the vehicle and observed Smith attempting to hide a firearm under the driver’s seat. The firearm belonging to Smith was later recovered along with various amounts of fentanyl and crack cocaine.
Smith is prohibited from possessing a firearm due to previous convictions of drug trafficking and felonious assault in the Cuyahoga County Common Pleas Court.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Cleveland Division of Police and the Southeast Area Law Enforcement. This case was prosecuted by Assistant U.S. Attorneys Payum Doroodian and Robert F. Corts.
Youngstown Man Sentenced to More Than 13 Years in Prison for Drug and Firearm OffensesRead the Press Release
YOUNGSTOWN – Raphael Ortiz, 40, of Youngstown, Ohio, was sentenced on Monday, Oct. 24, 2022, to more than 13 years in prison by U.S. District Judge Benita Y. Pearson after Ortiz pleaded guilty to distribution of fentanyl, possession of a firearm during a drug trafficking crime and being a felon in possession of a firearm.
According to court documents, in January 2021, law enforcement officers with the FBI, Mahoning Valley Violent Crimes Task Force (MVVCTF) and the Mahoning Valley Law Enforcement Task Force (MVLETF) executed a search warrant at the Ortiz’s Youngstown-area residence. During the execution of the warrant, investigators obtained a semi-automatic pistol and approximately $26,000 in cash.
That same day, authorities executed a second and third search warrant at two additional residences known to be used for the distribution and storage of narcotics by Ortiz. During the execution of these search warrants, authorities discovered approximately 2.8 kilograms of fentanyl, two semi-automatic pistols, a shotgun and two semi-automatic rifles.
Ortiz is prohibited from possessing firearms due to a 2008 conviction for drug trafficking and 2004 convictions for possession of heroin and assault on a peace officer.
The investigation preceding the indictment was conducted by the FBI and Mahoning Valley Law Enforcement Task Force. This case was prosecuted by Assistant U.S. Attorney Yasmine Makridis.
Owner of Toledo Area Medical Transportation Service Found Guilty of Healthcare FraudRead the Press Release
TOLEDO - A federal jury on Monday, Oct. 24, 2022, convicted the founder and owner of Blue Line Express Taxi & Medical Transport, a Toledo-area ambulette transportation business, of three counts of healthcare fraud following a three-day trial before Judge Jeffrey J. Helmick in Toledo.
According to court documents and evidence presented at trial, Abdul Haji Faqi, 46, of Toledo, was found guilty of participating in a scheme that knowingly submitted and received reimbursement payments from Medicaid for ineligible claims. Faqi’s co-defendants pleaded guilty and were sentenced earlier this year for their part in the scheme.
Between 2009 and 2016, Faqi schemed with his co-defendants to transport and bill Medicaid for ambulette transportation services of Medicaid beneficiaries who did not require or use a wheelchair. Faqi and his co-defendants knew that Medicaid only provided ambulette reimbursement for recipients who did require the use of a wheelchair and were actually transported in a wheelchair.
In addition, as part of the scheme to defraud, evidence presented during the trial showed that Faqi and his co-defendants billed Medicaid for wheelchair attendants without actually providing any attendants. Furthermore, evidence showed that Faqi and his co-defendants billed Medicaid for trips with multiple riders as separate individual trips, thereby inflating their Medicaid billing.
Faqi and his co-defendants also failed to obtain, and falsified, ambulette Certification of Medical Necessity (CMN) documents from Medicaid recipients that they transported. Faqi and the others knew and understood that Medicaid required a CMN for each recipient transported.
In total, court documents state that Faqi and his co-defendants received over $800,000 in reimbursements from Medicaid to which they were not entitled.
Faqi is scheduled to be sentenced on Feb. 13, 2023.
This case was investigated by the Health and Human Services Office of Inspector General (HHS OIG), the Ohio Attorney General’s Healthcare Fraud Section and the Toledo Resident Agency of the Cleveland FBI. This case is being prosecuted by Assistant United States Attorneys Jody L. King and Michael J. Freeman.
Van Wert County Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
TOLEDO – John Charles Coy, 72, of Van Wert County, Ohio, was sentenced on Thursday, October 20, 2022, to 10 years in prison by U.S. District Judge James R. Knepp II after Coy pleaded guilty to possession of child pornography.
According to court documents, in November 2020, local, state and federal law enforcement authorities began an investigation into Coy after receiving information that Coy, a long-time softball coach of minors in Marion County, may have been involved in sexual conduct involving several minors.
As a result of the investigation, authorities discovered that Coy possessed child pornography. On July 26, 2021, law enforcement authorities executed a search warrant at Coy’s residence in Van Wert County. During the search, authorities seized a cell phone belonging to Coy. Further investigation revealed that Coy had saved images of child pornography to his cloud account for his cell phone, including of a minor under the age of twelve.
This case was investigated by the Toledo Division of the FBI, Ohio Bureau of Criminal Investigation (BCI), and Marion Police Department. This case was prosecuted by Assistant U.S. Attorney Tracey B. Tangeman.
Dover Man Sentenced for Killing Bald EagleRead the Press Release
YOUNGSTOWN –A Dover, Ohio, man was sentenced today by U.S. Magistrate Judge Carmen E. Henderson to one year of probation and was ordered to pay a $4,000 fine and $1,500 in restitution to the United States Fish and Wildlife Service after he pleaded guilty to shooting and killing a bald eagle.
“The prosecution of crimes committed against our district’s wildlife and natural resources, including the national bird of the United States, are important duties of the U. S. Attorney’s Office,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Individuals who senselessly kill bald eagles and other federally protected migratory birds can expect to be punished similarly.”
“There is no excuse for knowingly shooting and killing a bald eagle,” said Special Agent in Charge John Brooks of the Office of Law Enforcement with the U.S. Fish and Wildlife Service. “Working with our state partners in Ohio, our agents investigated this senseless killing. Thanks to their work, the defendant has lost his hunting rights and will now pay substantial fines.”
According to court documents, David B. Huff, 79, routinely conducted inspections of farmland and several fields that he owned in Tuscarawas County for the presence of pests and rodents. On October 7, 2021, during one of these inspections, Huff shot and killed a bald eagle with a scoped rifle at a distance of approximately 100 feet.
After shooting the eagle, Huff picked up the animal and discarded it in the tree line of a bordering field.
On June 21, 2022, Huff pleaded guilty to a violation of the Bald and Golden Eagle Protection Act. The Bald and Golden Eagle Protection Act of 1940 prohibits anyone, without a permit, from, among other actions, shooting bald or golden eagles.
As part of his sentence, Huff is banned from hunting for a five-year period and the rifle and ammunition seized during the investigation by the United States Fish and Wildlife Service will be destroyed.
This case was investigated by the United States Fish and Wildlife Service with assistance provided by the Ohio Department of Natural Resources, Division of Wildlife. This case was prosecuted by Assistant U.S. Attorney Brad J. Beeson.
Uniontown Man Sentenced to Prison for Murder-for-Hire PlotRead the Press Release
AKRON – Scott Allen Renninger, 53, of Uniontown, Ohio, was sentenced today by U.S. District Judge John R. Adams to six years in prison and was ordered to pay $17,520 in restitution after he pleaded guilty to attempting to arrange a murder-for-hire plot.
“Engaging in a plot to kill or harm another is a threat to our way-of-life,” said First Assistant U.S. Attorney Michelle M. Baeppler. “This defendant went to great lengths in an attempt to facilitate the murder of an innocent person and now he will face the consequences of his actions.”
"Thwarting carefully crafted plots to carry out violent crimes are a priority of the FBI," said FBI Cleveland Special Agent in Charge Gregory Nelsen. "The cold and callous nature of a scheming individual is a threat to not only the victim of the action, but also the community. The FBI will continue to work tirelessly to find and investigate criminals or their network intent on causing harm to others."
According to court documents, from October to November 2020, Renninger met with an individual and discussed offering the individual money in exchange for the murder of a victim.
Court documents state that Renninger and the individual had frequent contact and that Renninger provided the individual with a photograph of the victim, license plate information and other materials that disclosed the victim’s residence. On one occasion, Renninger stated to the individual that they needed to figure out a way to communicate, possibly using disposable phones and confirmed his desire to make the victim “disappear.”
During subsequent meetings, Renninger and the individual again discussed the plot and agreed upon a price of $20,000 in exchange for the murder.
Renninger was arrested at his residence, without incident, on Nov. 17, 2020. The victim was unharmed.
Renninger pleaded guilty on Tuesday, June 21, 2022, to one count of use of interstate commerce facilities in the commission of murder-for-hire.
This case was investigated by the Cleveland FBI and was prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Brad J. Beeson.