Northern District of Ohio
Press releases recorded for this federal judicial district.
U.S. Attorney’s Office Announces District Election Officers for November General ElectionRead the Press Release
CLEVELAND – The United States Attorney’s Office announced today that Assistant United States Attorneys (AUSA) Ava R. Dustin and Megan R. Miller have been appointed as District Election Officers (DEO) to lead the Northern District of Ohio efforts in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election.
AUSA Ava R. Dustin will serve as the DEO for the Western Division of the Northern District of Ohio, and AUSA Megan R. Miller will serve as the District Election Officer for the Eastern Division. AUSAs Dustin and Miller are responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff and election fraud, in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said First Assistant United States Attorney Michelle M. Baeppler. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
“The right to vote is the cornerstone of American democracy,” said Baeppler. “We all must ensure that those who are entitled to the right to vote can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSAs Dustin and Miller will be on duty in this District while the polls are open. They can be reached by the public at the following telephone numbers:”
AUSA Ava R. Dustin (Western Division): (419) 259-6376
AUSA Megan R. Miller (Eastern Division): (216) 622-3600
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at: (216) 522-1400
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
Strongsville Dentist Convicted of Attempted Tax EvasionRead the Press Release
CLEVELAND - A federal jury today convicted Douglas Smith, 68, of Strongsville, Ohio, of four counts of attempting to evade payment of income taxes for the tax years 2004 to 2012 and 2014 to 2017 after a three-day trial before Judge Dan Aaron Polster in Cleveland.
According to court documents and evidence presented at trial, from March 2006 to July 2016, Smith, a licensed dentist in the State of Ohio, attempted to evade paying income taxes for the tax years 2004 to 2012. As part of his efforts, Smith placed his assets, including a home in Columbia Station, into a trust, purchased gold bars and coins and filed for bankruptcy. Additionally, from 2014 to 2017, Smith again attempted to evade paying income taxes by depositing his paychecks in the bank account of a second holding trust.
During the trial, evidence was presented that showed Smith had failed to file an income tax return since 1992 and owed more than $490,000 in back taxes and penalties to the IRS.
Court records state that in April 2008 and March 2009, the IRS notified Smith of its intent to collect taxes owed that Smith had failed to pay. Around 2006, evidence presented in court showed that Smith began to transfer his assets into a trust that he controlled to evade the collection of taxes and payment of his mortgage.
In October of 2010, court records state that the IRS filed with the Lorain County Recorder’s Office a tax lien against Smith, his trust and its trustee. In August of 2011, the IRS again sent Smith a letter notifying him that their next action was to recommend administrative seizure and sale of any of his assets to satisfy the federal tax liens.
In January 2012, federal authorities seized approximately $250,000 in cash, gold bars and gold and silver coins from Smith’s Columbia Station home for non-payment of income taxes to satisfy federal tax liens. After the seizure, Smith purported to transfer all his assets, including his Columbia Station home, to a second trust to defeat collection efforts and avoid foreclosure of his home.
Court documents state that the IRS continued to attempt to collect unpaid income tax from Smith and, around December 2015, served a levy on Smith’s employer. Smith then filed for bankruptcy and made false statements about his assets to shield them from IRS collection actions.
Smith is scheduled to be sentenced on February 7, 2023.
This case was investigated by IRS Criminal Investigations (CI) and is being prosecuted by Assistant U.S. Attorney Robert J. Patton.
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U.S. Attorney’s Office Announces More Than $20 Million in Justice Department Grant Funding Awarded to Support Local InitiativesRead the Press Release
CLEVELAND – The U.S. Attorney’s Office for the Northern District of Ohio announced today that the Department of Justice has awarded more than $20 million in grant funding in Fiscal Year 2022 to various entities, organizations and programs in the Northern District of Ohio to support law enforcement and public safety initiatives, assist victims of crime, provide training and technical assistance, conduct research and to implement programs that improve the criminal, civil and juvenile justice systems.
“We are grateful for the Department’s continued support of law enforcement initiatives and public safety organizations in this district,” said First Assistant U.S. Attorney Michelle M. Baeppler. “These investments will continue to fund and support the work our office, our partners and community members do to address the most pressing issues facing our communities.”
Significant grant funding awards announced include:
Cuyahoga County Prosecutor’s Office (CCPO), Cuyahoga County Sexual Assault Kit Taskforce. $2,500,000.00.
Cleveland, Ohio.
The CCPO was awarded grant funding to continue work on the county’s Sexual Assault Kit (SAK) Taskforce. Funding will be directed towards utilizing advanced DNA methodologies to identify and prosecute sexual offenders, investigate and prosecute leads and leverage experiences to inform practices locally and nationally.
City of Cleveland. $1,994,908.00
Cleveland, Ohio.
The City of Cleveland was awarded grant funding to support city-led, collaborative community violence intervention (CVI) planning and strategies administered through the mayor’s Office of Prevention, Intervention, and Opportunity in partnership with non-profits and community-based organizations in Cleveland.
Hancock County Alcohol, Drug Addiction and Mental Health Services Board (ADAMHS). $1,000,000.
Findlay, Ohio.
The Hancock County ADAMHS Board was awarded grant funding to support a collaborative approach to address and prevent the illicit use of opioids, stimulants, and other substances within a predominantly rural county.
Summit County Court of Common Pleas, SCORR Program. $792,701.
Akron, Ohio.
The Summit County Court of Common Pleas was awarded grant funding to support the development, implementation and evaluation of an expansion to the Summit County Offender Recidivism Reduction (SCORR) program. This program provides an increased level of accountability and structure to promote long-term offender behavior change and to improve offender outcomes for an overall reduction in substance abuse, recidivism and incarceration.
Mahoning County Common Pleas Honor Court (MCCPHC). $750,000.
Youngstown, Ohio.
The MCCPHC was awarded grant funding to serve Veterans charged with non-violent, low-level felony offenses in an effort to divert them from the traditional criminal justice system by providing the tools needed to lead a productive and law-abiding lifestyle while holding them accountable.
To view a full list of grant awards for this fiscal year, visit Justice.gov/grants
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Department of Justice Grant Agencies includes the Office of Community Oriented Policing Services (COPS), Office of Justice Programs (OJP) and the Office on Violence Against Women (OVW).
These agencies support law-enforcement initiatives and programs such as advancing the practice of community policing, disseminating state-of-the-art knowledge and best practices, administering grants for the implementation of crime-fighting strategies and providing federal leadership in developing the national capacity to reduce violence against women and strengthening services to victims of domestic violence, dating violence, sexual assault and stalking.
Louisiana Tax Preparer Pleads Guilty to Making and Subscribing a False Tax ReturnRead the Press Release
CLEVELAND - Jamika Raymond, 38, of Slidell, Louisiana, pleaded guilty today to one count of making and subscribing a false tax return.
According to court documents, Raymond was a tax preparer and operated a tax preparation business where she prepared tax returns on behalf of others. Court documents state that in February 2016, Raymond knowingly underreported business income earned for the calendar year 2015 on her tax return. Court documents also state that Raymond’s actual income was substantially more than what was reported on her individual tax return.
Raymond is scheduled to be sentenced on February 7, 2023 and faces a maximum possible sentence of three years in prison.
The investigation preceding the indictment was conducted by IRS Criminal Investigations (CI) and is being prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Robert J. Patton.
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Nigerian National Found Guilty of Bank Fraud SchemeRead the Press Release
CLEVELAND – A federal jury today convicted Blessing Adeleke, 31, of Nigeria, of one count of conspiracy to commit bank fraud and 16 counts of bank fraud for his role in a conspiracy to obtain stolen financial information, make fraudulent and unauthorized purchases of retail goods and gift cards and steal funds from victim bank accounts in Northern Ohio and elsewhere.
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 cash 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.
Adeleke is scheduled to be sentenced on January 18, 2023.
This case was investigated by the Cleveland FBI and is being 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.
More Than 4 Million Deadly Dosages of Fentanyl Seized in Ohio During DEA Enforcement SurgeRead the Press Release
CLEVELAND – The U.S. Attorney’s Office for the Northern District of Ohio and the U.S. Drug Enforcement Administration (DEA) Detroit Division today announced the results of an enforcement operation that resulted in significant fentanyl seizures across Ohio.
As part of the nationwide “One Pill Can Kill” initiative in Ohio, the DEA and its law enforcement partners seized more than 65 kilograms of fentanyl powder and 87,000 fentanyl-laced pills during the period of May 23, 2022, through Sept. 8, 2022 – enough to provide 4,766,788 deadly dosages.
Nationwide, more than 10.2 million fentanyl pills and approximately 980 pounds of fentanyl powder were seized during the same period. The amount of fentanyl taken off the streets during this surge is equivalent to more than 36 million lethal doses. Additionally, 338 weapons were seized, including rifles, shotguns, pistols, and hand grenades.
“Across the country and particularly here, in Northern Ohio, we have witnessed, firsthand, the proliferation of fentanyl and the devastating effects it has had on our neighbors and loved ones,” said First Assistant United States Attorney Michelle M. Baeppler. “Fighting back against drug traffickers who flood our streets with this deadly narcotic – particularly in pill form – is an enduring and relentless battle, but we must continue to fight.”
“Fentanyl in pill form is a deliberate attempt by drug cartels to make illicit drug use more appealing to Americans,” said DEA Detroit Special Agent in Charge Orville O. Greene. “Fake pills are especially concerning because of the appeal they can have to an unsuspecting person. One may believe they are taking a legitimate pharmacy-grade pill but far too often, that isn’t the case. Fake prescription pills bought on the street are made in clandestine labs, primarily in Mexico, from chemicals sourced from China, and contain a lethal dose of fentanyl.”
The U.S. Attorney’s Office for the Northern District of Ohio, the DEA and other law enforcement partners have led investigations and prosecutions of numerous individuals charged with or convicted of fentanyl trafficking recently, including:
United States v. Zamora et al (3:22-cr-00224-JGC)
In August 2021, authorities in Summit County received information that an ATV in Copley, Ohio, was scheduled to be transported out of state and was fitted to conceal 2.2 kilograms of pressed fentanyl pills meant to look like oxycodone originating from a cartel in Mexico. Authorities later arrested and charged Omar Zamora and Nathaniel Dabney in connection with the incident. Zamora and Dabney both pleaded guilty to their roles in the incident and were sentenced to prison.
United States v. Wall et al (1:22-cr-00280-SL)
In January 2022, postal inspectors in Arizona seized a package that was found to contain approximately 2.2 kilograms of fentanyl pills. After an investigation into the origins of the package, authorities identified Dayareon Crofton, Floyd Head and Cortez West as participants in an alleged drug trafficking conspiracy that shipped and couriered large quantities of fentanyl pills to Derrean Wall in Cleveland. Over the course of the next three months, Crofton, Head, and West were arrested, each carrying approximately 2 kilograms of fentanyl pills. All three were arrested while en route to Cleveland, Ohio. This case remains ongoing.
United States v. Brown et al (3:22-cr-00224-JGC)
In March 2022, federal authorities seized a parcel in the mail that was later found to contain approximately 7,833 fentanyl pills disguised to look like oxycodone. An investigation identified Cody Brown, Jennifer Murphy, and Damion Yoshimoto in Tiffin, Ohio, as part of a conspiracy that allegedly shipped fentanyl pills from out of state to Tiffin. Brown, Murphy and Yoshimoto were later arrested and charged in an indictment. This case remains ongoing.
United States v. Larrie Ladell Campbell (1:22-CR-268-JRA)
In May 2022, law enforcement obtained a parcel shipped in the U.S. mail from Arizona to Cleveland that was found to contain over 2 kilograms of fentanyl pills. An investigation determined that Larrie Ladell Campbell had mailed the parcel from Arizona and then traveled to Cleveland to try and retrieve it. Campbell pleaded guilty to federal charges in July 2022 and is awaiting sentencing.
United States of America v. Watkins (3:22-cr-00349-JGC)
In November 2020, Martez Watkins fled to Indiana after local drug trafficking charges were filed in Toledo, Ohio. While there, it is alleged that Watkins continued to send fentanyl pills to the Northern District of Ohio through his drug trafficking operation. Authorities later tracked Watkins down, and he was arrested in May 2022 on federal drug trafficking charges. During the Watkin’s residence, it is alleged that authorities found 5,362 pills, which were later determined to contain a combination of acetaminophen and fentanyl and meta-fluoro 4-ANPP and para-fluorofentanyl, more than $12,000 cash, a firearm, and drug packaging materials. This case remains ongoing.
In 2021, a record number of Americans – 107,622 – died from drug poisoning or overdose. Sixty-six percent of those deaths can be attributed to synthetic opioids such as fentanyl.
Drug traffickers have expanded their inventory to sell fentanyl in a variety of bright colors, shapes, and sizes. Rainbow fentanyl was first reported to DEA in February 2022, and it has now been seized in 21 states.
Fentanyl is a synthetic opioid that is 50 times more potent than heroin. Just two milligrams of fentanyl, or the amount that could fit on the tip of a pencil, is considered a potentially lethal dose.
As part of the DEA’s ongoing efforts to educate the public and encourage parents and caregivers to talk to teens and young adults about the dangers of fake pills and illicit drugs, DEA has also created a new resource, “What Every Parent and Caregiver Needs to Know About Fake Pills.”
In September 2021, DEA launched the One Pill Can Kill enforcement effort and public awareness campaign to combat the fake pill threat and educate the public about the dangers of fentanyl pills being disguised and sold as prescription medications, despite these pills not containing any of the actual medications advertised. The only safe medications are ones prescribed by a trusted medical professional and dispensed by a licensed pharmacist. All other pills are unsafe and potentially deadly.
Additional resources for parents and the community can be found on DEA’s Fentanyl Awareness page.
Canton Man Sentenced to 12 Years in Prison for Distribution and Possession of Child PornographyRead the Press Release
CLEVELAND – Daniel Joseph Kitlak, 37, of Canton, Ohio, was sentenced on Friday, Oct. 10, 2022, by U.S. District Judge Pamela A. Barker to 12 years in prison after he pleaded guilty to receipt and distribution of visual depictions of minors engaged in sexually explicit conduct and possession of child pornography.
According to court documents, in October 2021, law enforcement authorities executed a search warrant at Kitlak’s Canton-area residence after receiving information that Kitlak had distributed approximately 252 images and videos of child pornography online. During the search, authorities obtained multiple electronic devices later found to contain hundreds of files of child pornography, including at least one image involving a minor under the age of 12.
This case was investigated by the Department of Homeland Security Investigations (HSI) and was prosecuted by Assistant U.S. Attorney Margaret A. Kane.
Ohio Electrical Engineer Convicted of Tax EvasionRead the Press Release
A federal jury convicted a Liberty Center, Ohio man on Oct. 6 of tax evasion after he used a sham trust to help conceal three years of income he earned from his business.
According to court documents and evidence presented at trial, John Everson owned an electrical engineering business. From approximately 2012 through 2015, Everson earned more than $1.3 million in income from the business. He attempted to conceal much of this income and evade personal income taxes he owed to the IRS by instructing his clients to pay a trust that he controlled. Everson used the money in the trust to pay personal expenses and make large cash withdrawals. He also funneled some of the trust funds to other bank accounts held in the names of non-profit organizations that he and several family members controlled. To further conceal his income and assets from the IRS, Everson put his home and personal airplane in the name of the non-profit organization. In total, Everson’s conduct caused a loss to the U.S. Treasury of more than $500,000.
Everson is scheduled to be sentenced on March 16, 2023, and faces a maximum penalty of five years in prison on each of the three counts of his conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and tother statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Sarah Ranney of the Justice Department’s Tax Division and Assistant U.S. Attorney Jody King of the Northern District of Ohio are prosecuting the case.
Liberty Center Electrical Engineer Convicted of Tax EvasionRead the Press Release
TOLEDO – A federal jury convicted a Liberty Center, Ohio man on Oct. 6 of tax evasion after he used a sham trust to help conceal three years of income he earned from his business.
According to court documents and evidence presented at trial, John Everson owned an electrical engineering business. From approximately 2012 through 2015, Everson earned more than $1.3 million in income from the business. He attempted to conceal much of this income and evade personal income taxes he owed to the IRS by instructing his clients to pay a trust that he controlled. Everson used the money in the trust to pay personal expenses and make large cash withdrawals. He also funneled some of the trust funds to other bank accounts held in the names of non-profit organizations that he and several family members controlled.
To further conceal his income and assets from the IRS, Everson put his home and personal airplane in the name of the non-profit organization. In total, Everson’s conduct caused a loss to the U.S. Treasury of more than $500,000.
Everson is scheduled to be sentenced on March 16, 2023, and faces a maximum penalty of five years in prison on each of the three counts of his conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and tother statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio made the announcement.
IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Jody King of the Northern District of Ohio and Trial Attorney Sarah Ranney of the Justice Department’s Tax Division are prosecuting the case.
Former Massillon Post Office Operations Manager Sentenced to Prison for Stealing from and Delay of U.S. MailRead the Press Release
AKRON, Ohio – Bruce C. Murdock, Jr., 54, of Massillon, Ohio, was sentenced today by U.S. District Judge John R. Adams to six months in prison and was ordered to pay $8,346.96 in restitution and a $20,000 fine after Murdock pleaded guilty to delay or destruction of mail and theft of mail by a postal service employee.
According to court documents, from February 2021 to April 2022, Murdock was employed in the United States Postal Service (USPS) as a West Area Post Office Operation Manager (POOM), which is a high-level position that manages multiple Post Office locations. As a POOM, court records state that Murdock was able to remove parcels of mail from the mail stream prior to a scanning process that marked the mail as delivered to the Massillon Post Office. This avoided the parcels from being labeled as “lost” at the Massillon Post Office.
Court documents go on to state that during this period, federal authorities with the United States Postal Service Office of Inspector General (USPS OIG) observed Murdock remove parcels from the mail stream every day that he was in the office. After removing a parcel from the mail stream, Murdock was observed taking the parcel(s) back to his office, where he kept materials for repackaging. In some instances, Murdock would return the parcel to the mail stream. On other occasions, he would not.
During the sentencing hearing, Judge Adams said of Murdock that his “actions cast aspersions on all the good, hardworking thousands and thousands of postal employees around the country who try to do the right thing.”
Court records state that due to Murdock’s position as POOM, and access to the mail before it was scanned, authorities were unable to determine a total loss amount, nor a total number of victims impacted during their investigation.
The investigation preceding the indictment was conducted by the USPS OIG and was prosecuted by Assistant U.S. Attorney Colleen Egan.
Youngstown Man Sentenced to More Than 27 Years in Prison for Child Pornography Charges and Sexual Exploitation of ChildrenRead the Press Release
CLEVELAND – Jason S. Huffman, 50, of Youngstown, Ohio, was sentenced on Tuesday, September 27, 2022, to more than 27 years in prison, or 328 months, and was ordered to pay $3,000 in restitution by U.S. District Judge Christopher Boyko. The sentence was pronounced after Huffman pleaded guilty to a five-count indictment in April 2022, charging him with transportation of visual depictions of minors engaged in sexual conduct, possession of child pornography and sexual exploitation of children.
According to court documents and courtroom proceedings, from April 2015 to December 2020, Huffman uploaded images of child pornography to a cloud storage account, prompting numerous cyber-tips to the National Center for Missing and Exploited Children.
According to court records, law enforcement authorities executed a search warrant at Huffman’s residence in February 2021 and, during the search, 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. Authorities were later able to determine that Huffman had created the explicit photos of the victim over the course of a two-year period.
This case was investigated by the Department of Homeland Security Investigations (HSI) and the Mahoning Valley Human Trafficking Task Force. This case was prosecuted by Assistant U.S. Attorney Carol M. Skutnik.
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President of Radiology Services Company Sentenced to 15 Years in Prison for $2 Million Healthcare Fraud Scheme and Identity TheftRead the Press Release
CLEVELAND - Thomas G. O’Lear, 58, of North Canton, Ohio, was sentenced on Thursday, September 29, 2022, by U.S. District Judge Dan Polster to 15 years in prison and was ordered to pay $1,989,490 in restitution to Medicare, Medicaid and two Medicaid Managed Care Organizations (MCOs). Polster pronounced the sentence after O’Lear was convicted at trial of defrauding Medicare and Medicaid of approximately $2 million by billing for x-ray-related services that his company did not provide, engaging in a cover-up scheme to conceal the fraud and committing aggravated identity theft.
“This defendant wrongfully believed that he could cheat taxpayers by targeting nursing facilities and using the stolen identifies of vulnerable or deceased individuals to cover up his tracks,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Protecting taxpayers and government healthcare programs from fraud is an important priority for the Department of Justice and law enforcement.”
“Medicare and Medicaid providers who submit fraudulent claims for reimbursement and engage in identity theft undermine the trust placed in them by the beneficiaries that utilize their services,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services - Office of Inspector General. “We will continue to work together with our law enforcement partners to ensure that individuals who commit fraud against federal health care programs are held accountable.”
“Criminal misconduct within the healthcare system is not only deceitful but also destructive,” said FBI Cleveland Special Agent in Charge Gregory Nelsen. “Mr. O’Lear’s schemes are appalling. Those who abuse their position of trust for financial greed will not be tolerated. The FBI and our partners will continue to work collaboratively to identify and investigate those committing fraud with the intention of bilking government programs.”
According to court documents and evidence presented at trial, O’Lear was President of Portable Radiology Services (PRS), a company that provided portable x-ray-related services to individuals residing in nursing homes, skilled nursing facilities and long-term care facilities.
From 2013 through 2017, O’Lear submitted false claims for reimbursement to Medicare, Medicaid and MCOs for thousands of x-rays and related services that he and his business did not provide, including approximately 151 x-ray services purportedly provided to patients on dates after the patients had died.
Evidence also proved that O’Lear billed Medicare and Medicaid for purportedly having provided x-ray-related services to beneficiaries at nursing facilities on dates when the beneficiaries were hospitalized and not at the facilities. In another aspect of the fraud, O’Lear took multiple x-rays that had all been performed in one visit and falsely claimed that each one had been done on a different day, requiring separate reimbursement for transporting the portable x-ray equipment on each date. Similarly, O’Lear falsely billed for taking multiple images or views of patients when only one view had been done, thereby requiring a greater reimbursement.
During an audit by a Medicaid MCO, O’Lear covered up the scheme and committed aggravated identity theft by creating false medical records, including forms for ordering x-rays and radiology reading reports. He even falsified x-ray images, but was found to have re-used the same image repeatedly as different images of the same patient and even as images of different patients. In creating the falsified order forms, he forged the signatures of his employees and the physician he said had ordered the x-rays.
As a result of the scheme, court documents state that O’Lear submitted fraudulent bills to Medicare, Medicaid and Medicaid MCOs for approximately $3.7 million and received approximately $2 million in payments as a result of fraudulent bills.
“Nobody needs X-rays after they’re dead, and the taxpayers shouldn’t have to pay for them,” Ohio Attorney General Dave Yost said. “This crook made victims of everybody who pays taxes, and he deserves every day of his sentence.”
This case was investigated by the United States Department of Health and Human Services, Office of the Inspector General (HHS-OIG), the Cleveland FBI and the Ohio Attorney General’s Healthcare Fraud Section . This case was prosecuted by Assistant U.S. Attorneys Elliot Morrison and Brendan O’Shea.
Westlake Man Sentenced to Prison and Ordered to Pay More than $500,000 in Restitution for Evading Income TaxRead the Press Release
CLEVELAND - Yaser Najjar, age 60, of Westlake, Ohio, was sentenced on Tuesday, September 7, 2022, by U.S. District Judge Donald C. Nugent to two years in prison and was ordered to pay a $100,000 fine and at least $503,398 in restitution to the IRS after he pleaded guilty to four counts of attempt to evade and defeat income tax.
According to court documents, from 2009 to 2017, Najjar failed to report the total amount of income earned from his ownership and the operations of a gas station on East 152nd Street in Cleveland. In addition, court records state that, as part of the scheme to evade income tax, Najjar used cash from the business to make personal purchases and maintained a second, secret handwritten ledger documenting the gas station’s daily gross receipts, gasoline and convenience store sales.
Court records show that Najjar used an accountant to prepare his taxes for the calendar years 2009 through 2016 and deliberately concealed and misrepresented a substantial portion of the gas station’s gross receipts from the accountant. Najjar provided the accountant with the markup (profit) per gallon of gasoline and convenience store sales, which figures substantially underreported actual gross receipts as reflected in the handwritten ledger. Additionally, Najjar failed to provide the accountant with certain information related to actual gasoline and convenience store sales and concealed other sources of income, including ATM fees, vacuum machine receipts and air machine receipts.
In total, Najjar defrauded the IRS of more than $1.5 million in income taxes owed as a result of concealed or underreported income earned from the gas station operations.
The investigation preceding the indictment was conducted by the IRS - Criminal Investigations (CI). This case was prosecuted by Assistant U.S. Attorneys Elliot Morrison and Megan Miller.
Twin Brothers from Miami Sentenced to 52 Months in Prison for Fraudulently Obtaining Millions Worth of Apple Products through Identity Theft SchemeRead the Press Release
CLEVELAND - Twin brothers from Miami, Florida, who participated in a nationwide scheme in which they fraudulently gained access to approximately 2,366 AT&T mobile accounts, were sentenced today by U.S. District Judge Pamela A. Barker to 52 months in prison and ordered to pay $360,937 in restitution after they both pleaded guilty to their roles in the scheme.
According to court documents, from March 2019 to January 2020, Luis Hernandez Socarras and Jorge Hernandez Socarras, both age 27, were part of a nationwide scheme in which they fraudulently gained access to approximately 2,366 AT&T mobile accounts and proceeded to charge millions of dollars' worth of electronic devices through the victim’s accounts for products such as iPhones, iPads and Apple Watches.
After gaining access to victim accounts, court documents state that the brothers later re-sold the electronic devices in their hometown of Miami, Florida. As part of the scheme and in an effort to evade police detection, court records show that the brothers rented trucks and made trips across the country, stopping at various electronics retailers in 26 states to pick up the devices they fraudulently ordered.
Court documents state that in January 2020, law enforcement authorities identified the two brothers as they were making fraudulent purchases of iPhones and iPads charged to numerous AT&T accounts at various electronics retailers in the Northern District of Ohio. Authorities later obtained a warrant and searched a vehicle belonging to Luis Socarras that was left behind in the parking lot of a retailer. Inside the vehicle, authorities located 29 Apple iPhones, 11 Pro Max cell phones, six Apple iPad Pro tablets, three Apple Watches, a firearm, other electronic devices and a passport.
The brothers were subsequently arrested in March 2021.
In total, court records show that the overall scheme caused a total loss of $2,155,483.78 to all victims.
Louis and Jorge Socarras both pleaded guilty to two counts of access device fraud, interstate transfer of stolen property and aggravated identity theft in April 2022.
This case was investigated by the Cleveland FBI and was prosecuted by Assistant U.S. Attorney Payum Doroodian.
Nigerian National Residing in Cleveland Sentenced to Prison for Serving as “Money Mule” in Financial Fraud SchemesRead the Press Release
CLEVELAND – A Nigerian national residing in Cleveland was sentenced today by U.S. District Judge Donald C. Nugent to two and a half years in prison and ordered to pay $438,604.89 in restitution after she pleaded guilty to her role as a “money mule” for various financial fraud schemes that targeted individuals in the United States and elsewhere.
According to court documents, from June 2018 to August 2020, Deborah Anderson, 30, of Nigeria, was part of a financial fraud conspiracy that obtained money from victims through fraudulent investment opportunities, romance scams, fraudulent sales or rentals and other types of schemes.
Court documents show that Anderson served as a “money mule” or someone who transfers or moves illegally acquired money on behalf of someone else. As part of the conspiracy, victims transferred money to accounts controlled by Anderson, who, in turn, transferred the funds to various unknown individuals in Nigeria.
Additionally, court documents state that Anderson used victim funds to purchase personal items and later exported those items to Nigeria.
In total, victims suffered a combined loss of $438,604.89 as a result of the various scams.
Anderson pleaded guilty to one count of wire fraud in June 2022. As part of the sentencing, Anderson was ordered to surrender to the Bureau of Immigration and Customs Enforcement, U.S. Department of Homeland Security, at the conclusion of her sentence.
The investigation preceding the indictment was conducted by Homeland Security Investigations (HSI). This case was prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Kathryn Gaughan Andrachik.
Eight Charged with Trafficking Methamphetamine in Akron, Portage and Trumbull County AreasRead the Press Release
AKRON – First Assistant U.S. Attorney Michelle M. Baeppler announced that eight individuals were charged today in an 18-count superseding indictment with operating a drug trafficking conspiracy that distributed methamphetamine throughout the city of Akron, Portage County and Trumbull County areas.
Named in the superseding indictment are Dolan Mitchell Ady, 50, of Kinsman, Ohio; Christen Tate Oakman, 27, of Akron, Ohio; Shaquille Michael Haskell, 31, of Akron, Ohio; Markus Eugene Shaw, 37, of Warren, Ohio; Jennifer Derosa, 34, of Warren, Ohio; Robert Russell Boring, 32, of Akron, Ohio; Joshua M. White, 35, of Warren, Ohio and Travis Spithaler, 35, of Warren, Ohio.
Each defendant is charged with conspiracy to possess with intent to distribute methamphetamine. In addition, the indictment charges various members of the drug trafficking organization with distribution of methamphetamine, distribution of Lysergic Acid Diethylamide (LSD), possession with the intent to distribute methamphetamine, felon in possession of a firearm, felon in possession of ammunition and possession of a firearm by a person with a prior misdemeanor domestic violence conviction.
According to the indictment, it is alleged that from October 2021 to April 2022, the named members of the drug trafficking organization conspired together to purchase methamphetamine and redistribute it throughout the city of Akron, Portage County and Trumbull County areas. The indictment alleges that members of the organization maintained residences in the city of Akron to store and sell methamphetamine and conducted counter-surveillance while engaging in drug trafficking activity in order to identify the potential presence of law enforcement. Additionally, the indictment alleges members of the organization utilized motels and a residence within Trumbull County to store and sell methamphetamine.
An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, each defendant’s sentence will be determined by the court after 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), Portage County Sheriff’s Office Drug and Violent Crime Unit (PCSODVCU), Portage County Sheriff’s Office (PCSO), Akron Police Department Gun Violence Reduction Tactical Unit (APD GVRTU), Akron Police Department (APD), Ohio State Highway Patrol (OSP), Niles Police Department (NPD) and Warren Police Department (WPD).
This case is being prosecuted by Assistant United States Attorney Jason M. Katz.
Holland Woman Charged with Obtaining Millions in Fraudulent Tax Refund Scheme and Laundering MoneyRead the Press Release
TOLEDO – Teresia M. Jones, 34, of Holland, Ohio, was arraigned today in front of Magistrate Judge Darrell A. Clay in Toledo, Ohio, after she was charged in a 17-count indictment with one count of wire fraud, one count of theft of government funds, two counts of aggravated identity theft and twelve counts of money laundering.
According to the indictment, beginning in January 2020, Jones is accused of defrauding the IRS through a wide-ranging tax refund scheme by submitting false and fraudulent tax filings using stolen identities and claiming millions of dollars in improper tax refunds.
In addition, the indictment alleges that Jones laundered the stolen tax funds by purchasing a 2022 Cadillac Escalade for over $150,000, real property for over $850,000 and wedding planning services for $65,000, among other transactions. The indictment also identifies for forfeiture the Cadillac Escalade, a 2022 Dodge Ram truck, two parcels of real property and approximately $320,000 seized from bank accounts.
Jones pleaded not guilty to all counts during the arraignment and was released on bond.
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 IRS Criminal Investigations (CI) and the United States Secret Service (USSS). This case is being prosecuted by Assistant U.S. Attorneys Gene Crawford and Robert Patton.
Cleveland Heights Man Charged with Stealing Packages from the Mail and Cash from the United States Postal ServiceRead the Press Release
CLEVELAND - A federal grand jury has returned a two-count indictment charging Brandon Monteal Williams, 32, of Cleveland Heights, Ohio, with theft of mail by a postal employee and misappropriation of postal funds.
According to the indictment, from January to March 2022, Williams, a former mail processing clerk with the United States Postal Service and assigned to the Brooklyn, Ohio, branch, allegedly stole numerous parcels from the U.S. mail, including 10 cell phones and five pairs of high-valued sneakers totaling over $8,700.
Additionally, the indictment alleges that Williams stole not more than $1,000 in money and property from the Postal Service while employed with the agency.
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.
This case was investigated by the U.S. Postal Service Office of Inspector General (USPS OIG) and is being prosecuted by Assistant U.S. Attorney Andrea Isabella.
Cleveland Man Sentenced to Prison for Possession of a Firearm as a FelonRead the Press Release
CLEVELAND – Diante S. Colthirst, 32, of Cleveland, Ohio, was sentenced today to 78 months in prison, with 60 months to be served consecutively with a state sentence, by U.S. District Judge Christopher A. Boyko after he pleaded guilty in May 2022 to being a felon in possession of a firearm.
According to court documents, on March 2, 2020, law enforcement authorities attempted to arrest Colthirst in Orange, Ohio, due to an outstanding warrant for failure to appear for sentencing in the Cuyahoga County Common Pleas Court. Colthirst fled from authorities in a vehicle as they attempted to arrest him and eventually abandoned his vehicle and ran from the scene on foot. Authorities searched the vehicle and located a firearm inside under the passenger seat.
Colthirst is prohibited from possessing a firearm due to previous convictions of attempted felonious assault, carrying a concealed weapon and having weapons while under disability and felonious assault and aggravated robbery in the Cuyahoga County Common Pleas Court.
Colthirst was later arrested by the Northern Ohio Violent Fugitive United States Marshal Task Force on March 11, 2020.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Service (USMS) and the Orange Police Department. This case was prosecuted by Assistant United States Attorney Scott C. Zarzycki.
Warren Man Sentenced to More Than 24 Years in Prison After Pleading Guilty to Leading Drug Trafficking OrganizationRead the Press Release
CLEVELAND – Vincent Richardson Jr., 30, of Warren, Ohio, was sentenced on Wednesday, September 14, 2022, to more than 24 years in prison and ordered to pay a $4,000 special assessment by U.S. District Judge Christopher A. Boyko after he pleaded guilty in May 2022 to 40 counts of charges related to his role in leading a drug trafficking conspiracy.
According to court documents, from March 2019 to February 2020, Richardson operated a drug trafficking organization in the Youngstown-Warren areas and supplied drugs, including cocaine, cocaine base (crack), heroin, fentanyl and fentanyl analogues, to other members of the organization to be further distributed throughout the region.
As part of an investigation into Richardson and the drug trafficking organization, authorities conducted multiple controlled purchases of narcotics from members of the organization, including Richardson. In some instances, Richardson would direct another individual to deliver drugs to the buyer.
Investigators later executed multiple search warrants related to the investigation, including three that focused on Richardson’s residence. During the execution of these warrants, investigators obtained drug trafficking paraphernalia, a firearm, over $4,000 cash, a drug press and multiple quantities of drugs, including heroin, fentanyl, cocaine, cocaine base (crack) and fentanyl analogues.
The investigation preceding the indictments was conducted by the Drug Enforcement Administration (DEA), FBI, Mahoning Valley Violent Crimes Task Force, Trumbull Action Group, Trumbull County Sheriff’s Office and the Warren Police Department.
This case was prosecuted by Assistant U.S. Attorneys David Toepfer and Damoun Delaviz.
Two Maple Heights Men Charged in Multiple Armed Carjacking IncidentsRead the Press Release
CLEVELAND - Today, a federal grand jury returned a 10-count indictment charging Donteze Congress, age 18, and Thomas J.D. Williams, age 18, both of Maple Heights, Ohio, with using a firearm to steal vehicles during separate incidents on August 9, 2022.
Congress and Williams are both charged with carjacking, possession of a firearm in furtherance of a crime of violence and aiding and abetting possession of a firearm in furtherance of a crime of violence. Williams is also charged with attempted carjacking and carrying a firearm during a crime of violence.
According to court documents, it is alleged that on three separate occasions on August 9, 2022, police officers in Cuyahoga Falls, Solon and Streetsboro were called to respond to an armed carjacking incident. In both Cuyahoga Falls and Streetsboro, the perpetrators were alleged to have struck the victim’s vehicle from the rear, brandished firearms and confronted the victims after the victims exited the vehicle to assess the damage.
In the Streetsboro incident, it is alleged that the perpetrators approached the victim as the victim exited their vehicle, brandished a firearm and demanded the vehicle keys. However, court documents state that the perpetrators were unable to get away with the vehicle.
Defendants Congress and Williams were later identified and arrested following an investigation into the carjacking incidents.
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 Cleveland FBI, Solon Police Department, Cuyahoga Falls Police Department, Streetsboro Police Department and Garfield Heights Police Department. This case is being prosecuted by Assistant United States Attorneys Peter E. Daly and Christopher J. Joyce.
Cleveland Heights Man Sentenced to Prison and Ordered to Pay $177k in Restitution for Credit Card Fraud SchemeRead the Press Release
CLEVELAND - Carlos Dashawn Brown, 28, of Bowling Green and Cleveland Heights, Ohio, was sentenced on Wednesday, September 14, 2022, to 38 months in prison and ordered to pay $177,716.07 in restitution by U.S. District Judge Solomon Oliver Jr. after Brown pleaded guilty to the unauthorized use of an access device, bank fraud and aggravated identity theft.
“This defendant preyed upon disadvantaged individuals and depleted the savings of an elderly victim, all in an effort to make a quick buck for himself,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Law enforcement in this region will not stand for the targeting of vulnerable populations in our community.”
“Committing credit card fraud, bank fraud and identity theft against vulnerable populations is nothing short of a heartless crime,” said FBI Cleveland Special Agent in Charge Gregory Nelsen. “Mr. Brown’s actions are appalling. This sentence underscores the commitment of the FBI to find and investigate predatory behavior by nefarious individuals. The FBI is committed to protecting every American from fraudsters, whether one person or a network of criminals, through our work with federal, state and local partners.“
“This case is an example of the well-coordinated efforts of law enforcement and the U.S. Attorney’s Office to protect vulnerable and older Americans from financial exploitation,” said Inspector In Charge Lesley Allison for the U.S. Postal Inspection Service. “The Inspection Service appreciates the steadfast dedication from our law enforcement partners and the U.S. Attorney’s Office in bringing those who perpetrate these scams to justice.”
“This sentence demonstrates our commitment to hold accountable those who intentionally misuse the Social Security numbers of others for their own personal gain,” said Gail S. Ennis, Inspector General for the Social Security Administration. “Mr. Brown’s criminal actions brought financial harm upon vulnerable individuals. I want to thank our law enforcement partners for their investigative efforts and the U.S. Attorney’s Office for prosecuting this case.”
According to court documents, from April 2014 to January 2019, Brown perpetrated a credit card fraud scheme using the personal identifying information of multiple victims. These victims were vulnerable due to their age and/or mental condition.
As part of his scheme, Brown, without authorization, used the personal identifying information of these victims to open credit card accounts and make purchases, including travel, expensive goods and a vehicle. Brown also stole more than $60,000 from one elder victim’s pension account and fraudulently caused multiple banks and creditors to issue Brown over $117,000 in refund checks to which he was not entitled.
In total, Brown caused an approximate loss of $177,716.07 to all victims in the scheme.
This case was investigated by the Cleveland FBI, United States Postal Service Inspection Service (USPIS), Social Security Administration Office of the Inspector General (SSA OIG) and the Cleveland Heights Police Department. This case was prosecuted by Assistant U.S. Attorney Justin Seabury Gould.
Romanian National Sentenced to Prison for Role in International Online Auction Fraud SchemeRead the Press Release
AKRON - Costel Alecu, 38, of Bucharest, Romania, was sentenced to more than five and a half years in prison on September 7, 2022, by U.S. District Judge John R. Adams for his role in an international criminal network engaged in a wide-ranging online auction fraud scheme that targeted victims in the Northern District of Ohio and elsewhere in the United States.
In addition to the prison sentence, Alecu was ordered to pay a special assessment of $12,000 with restitution to be determined at a later date.
According to court documents, from July 2008 through August 2020, Alecu and codefendant Madalin Ghinea, 35, of Alexandria, Romania, were part of a conspiracy that devised a scheme to entice victims in the United States and elsewhere to purchase items online, including vehicles and other high-value items, that did not exist and to obtain the personal identifying information of their victims.
As a result, victims suffered a combined loss of approximately $3 million USD.
As part of the scheme, Alecu and other conspiracy members created accounts on various auction websites to post advertisements for goods that did not exist. In certain cases, Alecu and others created and used fictitious websites, email addresses and other forms of communication that contained counterfeit trademark information designed to convince their victims that the advertisements were genuine.
In addition, court documents state that the conspirators used a number of fraudulent online communication templates and email addresses to deceive victims into believing that they were communicating with legitimate business representatives when, in fact, they were speaking with a member of the conspiracy.
Court documents state that Alecu and others in the conspiracy then used a network of money launderers and money mules to obtain payment from their victims and transfer the funds overseas. Alecu and the conspirators then used the stolen personal identifying information of their victims, credit cards and bank accounts to launder money overseas and fund the operation of their network by purchasing items such as virtual private networks and domain names.
Romanian authorities arrested Alecu and Ghinea in March 2021.
Madalin Ghinea was sentenced on June 1, 2022, to more than four years in prison and ordered to pay $450,000.00 in restitution for his role in the scheme.
This case was investigated by the Cleveland FBI and IRS Criminal Investigation (CI) with help from authorities in Romania. This case was prosecuted by Assistant U.S. Attorneys Duncan T. Brown and Brian S. Deckert of the Northern District of Ohio with assistance provided by the Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section.
Bucyrus Man Sentenced to 24 Years in Prison for Sexually Exploiting a Minor and Distribution and Possession of Child PornographyRead the Press Release
CLEVELAND - David L. Holdcraft, 28, of Bucyrus, Ohio, was sentenced on September 8, 2022, to 24 years in prison by U.S. District Judge Solomon Oliver Jr., after Holdcraft pleaded guilty to receipt and distribution of visual depictions of minors engaged in sexually explicit conduct, possession of child pornography and sexual exploitation of children in May 2022.
In addition, to the prison sentence, Holdcraft was ordered to serve ten years of supervised release, pay $28,000 in restitution and $15,000 in special and Justice for Victims of Trafficking Act (JVTA) assessments.
“The cruelty and depravity of this defendant’s actions are unimaginable and individuals such as this defendant are why the Justice Department and all of law enforcement remain dedicated to protecting the most vulnerable among us by prosecuting dangerous predators,” said First Assistant U.S. Attorney Michelle M. Baeppler. “We are grateful to the authorities in this case for their hard work in identifying and apprehending this individual.”
“Finding and investigating child predators is one of the FBI’s highest priorities,” said FBI Cleveland Special Agent in Charge Gregory Nelsen. “Holdcraft’s conduct is appalling and heinous. This sentence ensures that he will be held accountable for his horrendous actions. We are proud of the work our agents conducted and will remain relentless in our pursuit to ensure children are protected through the FBI’s partnerships with federal, state and local law enforcement, providing resources to victims and their families and continuing education and outreach into our communities.”
According to court documents, on February 25, 2022, Mansfield FBI agents executed a search warrant at Holdcraft’s Bucyrus residence after receiving information that Holdcraft was involved in the distribution of child pornography on Wickr and Kik Messenger.
During the execution of the warrant, authorities obtained several electronic devices that were later found to contain hundreds of images and videos that depicted children as young as toddlers engaged in sexually explicit conduct. Investigators also seized a child-sized rubber torso from Holdcraft’s bedroom.
Investigators further determined that Holdcraft was engaged in inappropriate sexual conduct with a five-year-old victim and videotaped himself performing sexual acts on the victim.
This case was investigated by the Cleveland Division of the Federal Bureau of Investigation (FBI), Mansfield Resident Agency and was prosecuted by Assistant U.S. Attorney Carol M. Skutnik.
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Toledo Man Sentenced to Prison for Role in Drug Trafficking ConspiracyRead the Press Release
TOLEDO - Mohamed Ismial, 32, of Toledo, Ohio, was sentenced on August 26, 2022, to more than eight years in prison by U.S. District Judge James G. Carr after Ismail pleaded guilty to his role in a drug trafficking conspiracy.
According to court documents, from March 2019 to September 2019, Ismial was involved in a drug trafficking conspiracy that distributed various quantities of fentanyl, heroin, cocaine and crack cocaine in the Toledo area.
On March 5, 2020, state law enforcement authorities executed a search warrant at the defendant’s residence and obtained quantities of fentanyl, heroin, cocaine, crack cocaine and four firearms.
Ismial pleaded guilty to conspiracy to distribute with intent to distribute controlled substances, possession of firearms in furtherance of a drug trafficking crime and possession with intent to distribute fentanyl, heroin, cocaine and cocaine base on November 18, 2021.
This case was investigated by the Toledo Police Department and the U.S. Drug Enforcement Administration and was prosecuted by Assistant U.S. Attorney Robert N. Melching.
Career Offender in Elyria Sentenced to More Than 21.5 Years in PrisonRead the Press Release
CLEVELAND - Terry L. Jackson Sr., 50, of Elyria, Ohio, was sentenced on Thursday, September 8, 2022, by U.S. District Judge Donald C. Nugent to more than 21.5 years in prison after Jackson was convicted in a trial by jury of distributing cocaine base (crack) and possession with intent to distribute fentanyl, cocaine base (crack) and methamphetamine.
“This sentence is another example of the successful cooperation between federal, state and local law enforcement authorities in combating the scourge of opioids in our community,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Repeat drug traffickers earn their way to federal court to answer for the poisoning of our communities.”
“Drug trafficking cases remain one of the highest priorities of the FBI,” said FBI Cleveland Special Agent in Charge Gregory Nelsen. “This sentence underscores an unwavering commitment to combatting drug trafficking. The FBI, together with our federal, state, and local partners, remain steadfast in disrupting the flow of deadly drugs that pose the greatest threat to the well-being of every person in the United States.”
"The Elyria Police Department would like to thank our federal partners, the Federal Bureau of Investigation and the United States Attorney’s Office, for collaborating with us on the investigation of Terry L. Jackson," said City of Elyria Chief of Police William Pelko. "Mr. Jackson is a career criminal who we have dealt with many times throughout the years for numerous violent criminal and drug activity. The citizens of Elyria will no longer have to tolerate Jackson's criminal behavior. The Elyria Police Department will continue to work with our federal partners to investigate and prosecute these violent offenders."
According to court documents, in February of 2019, law enforcement officers with the Elyria Police Department began an investigation into Jackson, after receiving information that Jackson was distributing drugs out of an Elyria-area motel room. As a result, investigators conducted a controlled buy from Jackson and purchased a quantity of cocaine base (crack) from him. Shortly after, investigators obtained and executed a search warrant for the hotel room where Jackson was staying.
During the execution of the warrant, investigators encountered Jackson alone in the room and seized quantities of fentanyl, cocaine base (crack) and methamphetamine from him. Jackson was arrested at that time.
Jackson was classified as a career offender during the sentencing hearing due to multiple prior felony convictions, including drug trafficking and felonious assault. A career offender is an individual that commits either a crime of violence or a controlled substance offense after two prior felony convictions for either a crime of violence or a controlled substance offense.
This investigation was conducted by the Elyria Police Department, with assistance from the FBI and the Ohio Adult Parole Authority. This case was prosecuted by Assistant U.S. Attorneys Payum Doroodian and 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.
Toledo Woman Sentenced to Prison for Role in Fentanyl Pill ConspiracyRead the Press Release
TOLEDO - Nichole Zieroff, 32, of Toledo, Ohio, was sentenced on August 26, 2022, to fourteen months in prison by U.S. District Judge James G. Carr after Zieroff pleaded guilty to conspiracy to possess with intent to distribute controlled substances, attempted possession with intent to distribute fentanyl and eight counts of use of a communications facility to facilitate a drug felony.
According to court documents, from November 2019 to January 2020, Zieroff was part of a drug trafficking conspiracy in which she received packages through the mail containing fentanyl on behalf of her co-conspirators. In addition, court documents state that Zieroff used a cell phone on eight separate occasions to facilitate the conspiracy.
Zieroff pleaded guilty to the 10-count indictment on February 14, 2022.
This case was investigated by the United States Postal Inspection Service and the Drug Enforcement Administration and was prosecuted by Assistant U.S. Attorneys Robert N. Melching and Deyana F. Unis.
Lorain Man Sentenced to More Than 14 Years in Prison for Possession of Child PornographyRead the Press Release
CLEVELAND - Dylan T. Flanigan, 49, of Lorain, Ohio, was sentenced on Wednesday, September 7, 2022, to more than 14 years in prison by U.S. District Judge Donald C. Nugent after he previously pleaded guilty to possession of child pornography.
According to court documents, in February 2019, law enforcement investigators executed a search warrant at Flanigan’s Lorain residence after receiving information that he was in possession of child pornography.
During the search, investigators found multiple electronic devices that, upon examination, contained hundreds of images and more than 70 videos of child pornography.
This case was investigated by the Brunswick Police Department and the Cleveland FBI. This case was prosecuted by Assistant U.S. Attorneys Michael A. Sullivan, Kathryn Gaughan Andrachik and Margaret A. Kane
Fourteen Charged for Roles in Youngstown Area Drug Trafficking OrganizationRead the Press Release
YOUNGSTOWN – First Assistant U.S. Attorney Michelle M. Baeppler announced that fourteen individuals were charged today in a forty-six-count indictment with operating a drug trafficking organization that allegedly distributed crack cocaine, cocaine, heroin, fentanyl and fentanyl analogues throughout the Youngstown area.
Eleven of the fourteen individuals named in the indictment were arrested today by federal, state and local law enforcement authorities.
Named in the indictment are Terrence Chauncy May, 46, of Youngstown, Ohio; Thomas May Jr, 42, of Youngstown, Ohio; Terri Chauncy May, 22, of Youngstown, Ohio; Terris Chailyn May, 20, of Youngstown, Ohio; Key-Shaun Davis, 21, of Youngstown, Ohio; Hope Butler, 22, of Youngstown, Ohio; Wesley Allen Pierce May, 23, of Youngstown, Ohio; Christina May, 38, of Youngstown, Ohio; Ronald Falkowski, 51, of Berlin Center, Ohio; Carlo Demain, 28, of Struthers Ohio; Jason Stiner, 38, of Canfield, Ohio; Nyasia Iris Lopez, 27, of Struthers, Ohio; Shanika Simmons, 38, Youngstown, Ohio and Allison Grossen, 35, Youngstown, Ohio.
Each defendant is charged with conspiracy to possess with intent to distribute cocaine, crack cocaine, heroin, fentanyl, and fentanyl analogues. In addition, the indictment charges various members of the drug trafficking organization with using a communication facility in furtherance of a drug trafficking crime, distribution of cocaine base (crack), distribution of fentanyl analogue and fentanyl, distribution of heroin and fentanyl, distribution of fentanyl and distribution of tramadol and fentanyl. Defendant Thomas May, Jr is also charged with being a felon in possession of a firearm.
According to the indictment, from February 2020 to January 2022, it is alleged that Defendant Terrence Chauncy May obtained large quantities of cocaine, crack cocaine and narcotics, which he then supplied to other members of the drug trafficking organization to be further distributed in the Youngstown area.
In addition, the indictment alleges that Defendants Terrence Chauncy May, Hope Butler, Terris Chailyn May and Key-Shaun Davis maintained multiple premises in Youngstown for the purposes of distributing and storing drugs.
The conspirators are also accused of using cell phones and coded language to obscure and disguise their drug trafficking activity.
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.
This case was investigated by the FBI Violent Crimes Task Force in a joint investigation with Mahoning County Sheriff's Office, Mahoning Valley Law Enforcement Task Force, Youngstown Police Department, Boardman Police Department, Campbell Police Department, Austintown Police Department and the Mahoning County Juvenile Court.
This case is being prosecuted by Assistant U.S. Attorney Jason M. Katz.
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Eight Charged with Operating Drug Trafficking Organization that Distributed Kilograms of Cocaine Throughout Wayne, Stark and Tuscarawas CountiesRead the Press Release
CLEVELAND - First Assistant U.S. Attorney Michelle M. Baeppler announced that eight men in the Canton area were charged in a three-count indictment with operating a drug trafficking organization that distributed kilogram quantities of cocaine throughout Wayne, Stark and Tuscarawas Counties and elsewhere in the Northern District of Ohio.
Named in the indictment are Arnulfo Gomez-Araiza, 40, of Orrville, Ohio; Alejandro Jesus Quezada, 33, of Louisville, Ohio; Adrian Nava Marquez, 32, of Canton. Ohio; Luis Soto-Perez, 27, of Massillon, Ohio; Isidro Gutierrez-Meraz, 32, of Orrville, Ohio; Isidro Gutierrez-Cuevas, 56, of Orrville, Ohio; Vicente Guzman-Bernal, 37, of Dover, Ohio and Joshua Nagle, 40, of Canton, Ohio.
Each defendant is charged with conspiracy to distribute and possess with intent to distribute controlled substances. Defendant Vicente Guzman-Bernal is charged with an additional count of possession with intent to distribute cocaine and defendant Alejandro Jesus Quezada is charged with an additional count of felon in possession of a firearm.
According to court documents, it is alleged that in March 2020, federal, state and local law enforcement authorities began an investigation into a suspected drug trafficking organization led by defendant Arnuflo Gomez-Araiza based in the Wayne and Stark County area.
According to the indictment, the members of the Gomez-Araiza drug trafficking organization are alleged to have distributed, sold and transported kilogram quantities of cocaine in the Northern District of Oho and elsewhere in the state of Ohio. It is alleged that members of the drug trafficking organization received shipments of cocaine, facilitated numerous drug transactions and shipped the drug trafficking proceeds to others throughout the state of Ohio via couriers.
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.
This case was investigated by the FBI Canton, Wayne County MEDWAY Drug Task Force, Canton Police Department, Jackson Township Police Department, Massillon Police Department, Stark County Sheriff’s Office, Tuscarawas County Sheriff’s Office, Dover Police Department and the FBI TOC-W Task Force. This case is being prosecuted by Assistant U.S. Attorney Toni Beth Schnellinger Feisthamel.
Former CFO of Claddagh Irish Pubs Parent Company Charged with Defrauding States Out of More Than $1 Million in Sales Tax RevenueRead the Press Release
CLEVELAND - First Assistant U.S. Attorney Michelle M. Baeppler announced that the former Chief Financial Officer (CFO) of CDG Acquisition, LLC (CDG), a company registered in the State of Ohio, which owned “The Claddagh Irish Pubs” chain of restaurants, was charged with defrauding multiple states of sales tax revenue where the restaurant chain operated.
Ciaran Dillon, 56, of Solon, Ohio, was named in the indictment and officially charged with two counts of wire fraud.
According to the indictment, from January 2010 through May 2018, the defendant, acting in his official capacity as CFO of CDG, directed a company accountant to pay certain states less sales tax than the true amount owed. The indictment states that based on the defendant’s instruction, the accountant would edit the company's sales and sales tax figures, file false tax returns and pay states the amount instructed by the defendant.
It is alleged that one common way to underpay sales tax was for the company to report and pay sales tax for four weeks during a five-week period, leading CDG to collect a week’s worth of sales taxes that were omitted from state sales tax filings.
In total, it is alleged that during this time, the defendant defrauded the States of Indiana, Kentucky, Illinois, Michigan, Minnesota, Ohio, Pennsylvania and Wisconsin out of more than $1 million in sales tax revenue collected from CDG customers across fifteen restaurants.
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, a 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.
This case was investigated by the Cleveland FBI and is being prosecuted by Assistant U.S. Attorney Alejandro A. Abreu.
Cleveland Man Previously Serving Life in Prison Sentenced for Drug Trafficking and Possession of a Firearm as a FelonRead the Press Release
AKRON - Andre Badley, 49, of Cleveland, Ohio, was sentenced on Tuesday, August 30, 2022, by U.S. District Judge John R. Adams to nearly 20 years in prison after he was convicted at trial of being a felon in possession of a firearm and possession with intent to distribute crack cocaine, cocaine, fentanyl and heroin.
Badley was sentenced to the custody of the Bureau of Prisons for a period of 188 months as to Counts 1, 2, 3, and 5 of the indictment and 120 months as to Count 4, both to be served concurrently. In addition, Badley was also sentenced to 51 months in prison for violating his federal supervised release. In total, Badley will serve nearly 20 years in prison.
Badley was previously convicted in 1997 in the United States District Court for the Northern District of Ohio and sentenced to life in prison for distribution of crack cocaine and cocaine. Badley served more than 23 years of that sentence and was released in 2019 under the First Step Act.
According to court documents, on March 5, 2021, law enforcement authorities executed a search warrant at a residence known to be occupied by Badley after receiving information regarding suspected drug trafficking activity. During the search, a K-9 unit alerted authorities to the presence of controlled substances, and investigators found large quantities of crack cocaine, cocaine, fentanyl and two firearms in the residence. Then, on March 25, 2021, Badley was found to be in possession of another large quantity of crack cocaine in his vehicle.
Badley is prohibited from possessing a firearm due to a previous conviction of drug trafficking in the United States District Court for the Northern District of Ohio.
This case was investigated by the Shaker Heights Police Department, with assistance from the DEA and ATF. This case is being prosecuted by Assistant U.S. Attorneys Robert J. Kolansky and Vanessa V. Healy.
Fourteen in Elyria and Cleveland Indicted for Roles in Drug Trafficking OrganizationRead the Press Release
CLEVELAND - Fourteen members of a drug trafficking organization operating in Northeast Ohio were charged today after a grand jury returned a 38-count indictment, alleging that the defendants participated in a conspiracy that distributed over 5 kilograms of cocaine, over 280 grams of crack cocaine base and fentanyl throughout the area.
Named in the indictment are Montez Miller, 34, of Elyria, Ohio; Mario Hoyle, 32, of Elyria, Ohio; Marlon Hoyle, 30, of Elyria, Ohio; Marque Miller, 28, of Cleveland, Ohio; Theodore Nickoloff, 48, of Elyria, Ohio; Adrian Smith, 32, of Elyria, Ohio; Anthony Lee Smith, 33, of Elyria, Ohio; Mario McCray, 41, of Elyria, Ohio; Madonna Sanchez, 36, of Elyria, Ohio; Alex Perez, 25, of Sheffield Lake, Ohio; Bernard Green, 62, of Elyria, Ohio; Brandon Keith, 32, of Elyria, Ohio; Toquato Knowles, 42, of Elyria, Ohio and Darius Glass, 32, of Elyria, Ohio.
Each defendant is charged with conspiracy to possess with intent to distribute a controlled substance and distribution of controlled substances.
According to the indictment, from February 2019 to August 2022, it is alleged that members of the drug trafficking organization obtained large quantities of cocaine from an unknown supplier, which they then redistributed to the named defendants to be further distributed throughout Northeast Ohio.
The conspirators are also accused of using cell phones and coded language to obscure and disguise their drug trafficking activity.
If convicted, a defendant’s sentence will be determined by the court after a review of factors unique to this case, including prior criminal records, if any, role in the offenses, and the characteristics of the violations.
In all cases, sentences will not exceed the statutory maximums, and in most cases, will be less than the maximums.
The investigation was conducted by the Elyria Police Department, with assistance from the FBI Cleveland Division, the Lorain Police Department, the Lorain County Sheriff’s Office, Lorain County Prosecutor’s Office and the United States Marshals Service. This case is being prosecuted by Assistant United States Attorneys Robert F. Corts and Vasile C. Katsaros.
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 www.justice.gov/OCDETF.
This case was also investigated as part of Operation Synthetic Opioid Surge (S.O.S.)., an 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.
Canton Man Charged with Operating Illegal Slot Machine Gambling BusinessRead the Press Release
First Assistant U.S. Attorney Michelle M. Baeppler announced that Steven Saris, 47, of Canton, Ohio, was charged in an indictment with operating an illegal gambling business.
The indictment alleges that from 2012 through 2018, the defendant, and others known and unknown to the Grand Jury, owned and operated Café 62, an illegal gambling business involving slot machines, in the Canton area.
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, a 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 IRS Criminal Investigation (CI), Homeland Security Investigations (HSI), the Ohio Casino and Gaming Commission and the Stark County Prosecutor’s Office.
This case is being prosecuted by Assistant U.S. Attorneys David M. Toepfer and Robert J. Patton.
Miami Man Arrested and Charged with Bank Fraud and Identity TheftRead the Press Release
CLEVELAND – First Assistant U.S. Attorney Michelle M. Baeppler announced that Sedric J. Lewis, age 35, of Miami, Florida, was charged in a four-count indictment with two counts of bank fraud and two counts of aggravated identity theft in the Northern District of Ohio.
According to the indictment, in June 2019, Lewis used the personal identifying information of another individual to open a bank account with JPMorgan Chase Bank. In addition, the indictment alleges that in August 2019, Lewis deposited into the same JPMorgan Chase Bank account a fraudulent check bearing the forged signature of another individual.
Lewis was arrested on Thursday, Aug. 25, 2022, in Miami.
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, a 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.
This case was investigated by the FBI Cleveland Division and is being prosecuted by Special Assistant United States Attorney Jason W. White.
Woodmere Man Sentenced to Prison for Obtaining Stolen Credit Card Information and Using it to Purchase GasolineRead the Press Release
CLEVELAND - Charles E. Smith, Jr., 52, of Woodmere, Ohio, was sentenced today by U.S. District Judge Christopher A. Boyko to 33 months in prison and ordered to pay $10,621.23 in restitution after he pleaded guilty to using stolen financial information to purchase gasoline.
According to court documents, from May 2019 through May 2020, Smith, the former Mayor of Woodmere, Ohio, purchased stolen credit and debit card account information, including account numbers and addresses, from the dark web. Smith then used a credit card reader encoder/writer to program that information onto blank cards and used those cards to make fraudulent purchases of gasoline at various gas stations in Northern Ohio. Court records state that Smith purchased the gasoline to fuel vehicles that he used to deliver packages for Amazon.
In total, Smith purchased at least $10,621.23 in gasoline using over 100 stolen debit and credit card accounts. After his arrest, investigators later determined that Smith had purchased more than 600 stolen debit and credit card accounts from the dark web, affecting victims in 25 states.
Smith pleaded guilty to one count of access device fraud and one count of aggravated identity theft on May 19, 2022.
This case was investigated by the U.S. Secret Service and was prosecuted by Assistant U.S. Attorney Payum Doroodian.
Cleveland Man Sentenced to Prison for Providing a False Statement to a Firearms Dealer, Illegal Possession of Ammunition and Possession with Intent to Distribute DrugsRead the Press Release
CLEVELAND - Andre Hunt, 24, of Cleveland, Ohio, was sentenced to 61 months in prison by U.S. District Judge Dan Aaron Polster on Wednesday, Aug. 24, 2022. Hunt previously pleaded guilty to providing a false statement to a firearms dealer in Ashtabula, Ohio, in order to purchase a weapon, illegal possession of ammunition and possession with intent to distribute fentanyl, heroin and methamphetamine.
According to court documents and statements made during the sentencing hearing, Hunt was released from prison on July 22, 2020, following a 2015 conviction in the Ashtabula County Court of Common Pleas of two counts of felony aggravated robbery.
Shortly after his release, on Aug. 21, 2020, Hunt gave a false statement to a licensed firearms dealer in Ashtabula in an attempt to purchase a pistol. Court documents state that Hunt claimed he had never been convicted of a felony when, in fact, he had previously been convicted of felony charges.
Following this incident, on Oct. 1, 2020, court documents state that Hunt was found to be in possession of fentanyl, heroin, methamphetamine and fourteen rounds of ammunition. Hunt is prohibited from possessing ammunition due to his previous felony conviction.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Crime Enforcement Agency of Ashtabula County (CEAAC) and the Ashtabula Police Department. This case was prosecuted by Assistant U.S. Attorney Jason M. Katz.
Euclid Man Sentenced to More Than 12 Years in Prison for Receipt, Distribution and Possession of Child PornographyRead the Press Release
John P. Comer, 52, of Euclid, Ohio, was sentenced on August 19, 2022, by U.S. District Judge Patricia A. Gaughan to more than 12 years in prison and 20 years of supervised release after Comer pleaded guilty to receipt and distribution of visual depictions of minors engaged in sexually explicit conduct and possession of child pornography.
According to court documents, on September 30, 2021, federal law enforcement agents executed a search warrant at an address in Euclid associated with Comer after authorities became aware of his involvement in the receipt and distribution of child pornography, including a digital folder labeled “CP video Brutal.”
During the execution of the warrant, authorities seized multiple electronic devices belonging to Comer, including two computers and a cell phone containing child pornography. An onsite forensic preview of Comer’s cell phone revealed that it contained images of minors engaged in sexual conduct.
In addition to the prison sentence, Judge Gaughan ordered Comer to pay $3,000 in restitution and a $10,000 Justice for Victims of Trafficking Act (JVTA) assessment.
This case was investigated by the Cleveland FBI and prosecuted by Assistant U.S. Attorney Michael A. Sullivan.
Youngstown Man Sentenced to 30 Years in Prison for Sexual Exploitation of Minors and Distribution and Possession of Child PornographyRead the Press Release
CLEVELAND - Matthew Lucarell, 42, of Youngstown, Ohio, was sentenced today by U.S. District Judge Pamela A. Barker to 30 years in prison after Lucarell pleaded guilty to four counts of sexual exploitation of children, one count of possession of child pornography and one count of receipt and distribution of minors engaged in sexually explicit conduct.
According to court documents, from September 2019 to March 2021, Lucarell coerced four separate minor victims into engaging in sexually explicit conduct in order to produce visual depictions of the interactions. In addition, from May 2018 to February 2021, Lucarell knowingly received and distributed various files of child pornography.
On April 1, 2021, Lucarell was found to be in possession of a cell phone and two Micro SD Cards, which contained numerous files of child pornography, including at least one image involving a minor under the age of 12.
This case was investigated by Homeland Security Investigations (HSI) and the Mahoning Valley Human Trafficking Task Force. This case was prosecuted by Assistant U.S. Attorney Margaret A. Kane.
Florida Couple Charged with Sending Threatening Communications to Law Enforcement and Others in Northern OhioRead the Press Release
CLEVELAND – First Assistant U.S. Attorney Michelle M. Baeppler announced that a Florida couple was charged in a five-count indictment with sending threatening communications to federal law enforcement agents and other individuals in the Northern District of Ohio.
Akil Larry Joseph, 31, and Alexa Marie Logan, 30, both of Homestead, Florida, were charged with four counts of cyberstalking and one count of interstate communications with intent to extort.
According to court documents, from November 2021 to July 2022, it is alleged that Joseph and Logan sent numerous threatening communications, via email and telephone, to federal law enforcement agents and other individuals in the Northern District of Ohio with the intent to obtain money from the victims.
Court documents state that over the course of an approximately two-year period, multiple communications sent by the couple, primarily via email, came to contain increasingly harassing and aggressive language rhetoric and tone.
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, a 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.
This case was investigated by the FBI. This case is being prosecuted by Assistant U.S. Attorneys Christopher J. Joyce and Peter E. Daly.
U.S. Attorney's Office Recognizes Employees for Outstanding Work in 2021Read the Press Release
The United States Attorney's Office for the Northern District of Ohio presented awards to honor exceptional advocacy, support and legal work on behalf of the district's six million residents in the year 2021.
"Each year, our office recognizes exceptional performance, leadership and effort put forth by employees of the United States Attorney’s Office in the Northern District on behalf of the residents and communities that we serve,” said First Assistant United States Attorney Michelle M. Baeppler,” "Whether it's combating violent crime, protecting taxpayers, assisting with case management or managing the needs of an office of over 200 employees, these award recipients embody the best of public service."
Details of the award winners are below:
National Association of Former United States Attorneys’ Exceptional Service Award
The National Association of Former United States Attorneys’ award recognizes exceptional service to the United States Attorneys’ Office, the Department of Justice and the United States in its award for Exceptional Service.
Awardee: Carol Skutnik
Excellence in Civil, Criminal, Paralegal and Administrative Support
Awarded for outstanding overall performance for a particular project/case/duty or series of projects/cases/duties in a respective office division.
Excellence in Civil Support
Kendall Miller
Excellence in Paralegal Support
Jennifer Miller
Excellence in Criminal Support
Judith Toth
Excellence in Administrative Support
Kerri Hesketh
New Legal Support Award
Awarded to a civil, criminal, or administrative support employee with less than five years of experience who demonstrates outstanding overall performance, a superior commitment to the mission of the Office and displays significant growth in the execution of their duties.
Awardee: Kelsey Sprenger
New AUSA Excellence Award
Awarded to an Assistant U.S. Attorney with less than five years of experience who demonstrates outstanding overall performance, a superior commitment to the mission of the Office and displays significant growth in the execution of their duties.
Awardee: Matthew Simko
The Jane Corrigan Award
Awarded to a supportive staff member who is always professional, ready to help others in the performance of their duties, who expresses a “can-do” attitude, and whose demeanor is always engaging.
Awardee: Antoinette Burrell
Bernard A. Smith Award for Excellence in Appellate Advocacy
Awarded for exceptional advocacy in an appellate matter. Nominees are considered for their professionalism, the difficulty of the legal arguments briefed or argued, and any other challenging case-related circumstances, regardless of verdict or court opinion.
Awardee: Daniel Ranke
Excellence in Criminal Advocacy
Awarded for exceptional advocacy in a criminal matter. Nominees are considered for their professionalism, the difficulty of the legal arguments briefed or argued, and any other challenging case-related circumstances, regardless of verdict or court opinion.
Awardees: Michael Collyer, Megan Miller, Bryan Bricker, Allison Kretz
Excellence in Civil Advocacy
Awarded for exceptional advocacy in a civil matter. Nominees are considered for their professionalism, the difficulty of the legal arguments briefed or argued, and any other challenging case-related circumstances, regardless of verdict or court opinion.
Awardee: Suzana Koch
AUSA Supervisor of the Year
Awarded to a supervisor who has demonstrated superior professionalism, leadership, and management in the performance of their duties.
Awardee: Steven Paffilas
The Bill Edwards Career Award
Awarded to an Assistant U.S. Attorney with more than 15 years of experience who has demonstrated superior professionalism in the execution of their duties and excellence in leadership and mentorship throughout their career.
Awardee: Guillermo “Bill” Rojas
The Roberta Sladick Career Award
Named after former Northern District of Ohio employee Roberta Sladick and awarded to a support staff employee with more than 15 years of experience who has demonstrated superior professionalism in the execution of the support staff’s duties, and excellence in leadership and mentorship throughout the person’s career.
Awardee: Sarah Perkins
The Craig Tame Award for Excellence in Community Outreach Award
Named in honor of former Northern District of Ohio Law Enforcement Coordinator Craig Tame and awarded to an employee who demonstrates a commitment to community service and making the Northern District of Ohio a better place to live.
Awardee: Michelle Heyer
Employee of the Year – Administrative Support
Awarded for exceptional overall performance, which demonstrates a superior commitment in the execution of the person’s duties in the Administrative Division.
Awardee: SharNette McCully
Employee of the Year – Legal Support:
Awarded to a Legal Support employee for exceptional overall performance, taking into account all the required responsibilities in the performance of the person’s duties, which demonstrates a superior commitment to the interests of justice, and the mission of the United States Attorney’s Office.
Awardee: Jesse Sherman
AUSA of the Year
Awarded to an Assistant United States Attorney for exceptional overall performance, taking into account all the required responsibilities in the performance of the person’s duties, which demonstrates a superior commitment to the interests of justice and the mission of the United States Attorney’s Office.
Awardees: Assistant U.S. Attorneys Robert J. Kolansky and Peter Daly
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Parma Man Charged with Conspiracy to Commit Arson During May 30, 2020, Demonstrations and Unrest in Downtown ClevelandRead the Press Release
A Parma man has been charged with one count of conspiracy to commit arson related to the destruction of a parking booth during the May 30, 2020, demonstrations and civil unrest in downtown Cleveland.
According to the indictment, Seth Calig, 49, and others known and unknown are accused of setting fire to the Shaia & PPR parking booth located on West 3rd Street on May 30, 2020. It is alleged that the defendant and others gathered around the parking booth and that the defendant ignited a roll of paper towels and cardboard with a lighter and placed it inside the booth. As a result, it is alleged that Calig and others caused physical damage to the parking booth.
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.
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 Kelly L. Galvin.
Las Vegas Man Charged with Operating Sports Wagering Ponzi Scheme that Stole $8.5 Million from VictimsRead the Press Release
Matthew J. Turnipseede, 49, of Las Vegas, Nevada, was charged today in a 13-count indictment with defrauding approximately 72 investors in the Northern District of Ohio and elsewhere out of more than $8.5 million through a Ponzi scheme that promised investors double-digit profits achieved through various sports wagering businesses.
The defendant was officially charged with 12 counts of wire fraud and one count of mail fraud.
According to the indictment, from March 2015 to May 2021, the defendant induced victims to invest money in companies that he owned, namely Edgewize LLC, Moneyline Analytics, Moneyline Analytics Dublin Branch, and another company incorporated by Turnipseede, by falsely claiming that investor funds would be used to make sophisticated sports wagers according to an algorithm that generated double-digit returns.
According to the indictment, none of these companies ever generated the promised profits, and instead the defendant used investor money to maintain the business, seek new sources of funds, pay off earlier investors and fund personal expenses.
The indictment alleges that the defendant provided victim investors with operating agreements in which he claimed that all money invested would be used exclusively to place bets on sporting events and that the defendant would not be paid any compensation for placing the wagers but would retain a percentage of the winning profits.
To perpetuate the scheme, the defendant is accused of periodically emailing fraudulent financial statements to victims purporting to show substantial gains on their investments and employing an accounting firm to generate IRS forms based on fraudulent figures provided to the firm by the defendant. The indictment alleges that the defendant’s sports wagers never generated the promised profits for investors and that the information provided to the accounting firm was fraudulent. It is alleged that if a victim sought to withdraw some or all of their investments, the defendant used money from other victims’ contributions to cover the withdrawal.
In addition, it is also alleged that the defendant used investor funds to finance his personal expenses, including family vacations to Disneyland and Hawaii, spa treatments, lease payments on multiple vehicles and country club membership dues.
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.
This case was investigated by the Cleveland FBI. This case is being prosecuted by Assistant U.S. Attorneys Erica D. Barnhill and Brian McDonough.
Former Public Utility Employee Pleads Guilty to Installing Keylogger Devices on Work ComputersRead the Press Release
CLEVELAND – John Pelton, 55, of Avon Lake, Ohio, a former Operator with a Northern Ohio public utility, pleaded guilty today to recording the computer keyboard strokes of coworkers while employed at the utility and to making false statements to FBI agents.
Pelton officially pleaded guilty to a Bill of Information charging him with attempting to access a secure computer and obtain information and providing a false statement to a government official.
According to court documents, while working as an Operator with the utility, Pelton purchased two physical keyloggers from eBay with the intent of using them at his place of employment. A physical keylogger is an electronic device that stores and can transmit every keystroke made on a keyboard.
Court documents state that a keylogger is capable of intercepting employee login credentials, messages and any other information typed into a computer. Additionally, these devices have built-in memory capable of storing approximately 16 million keystrokes and could be accessed wirelessly with any Wi-Fi-enabled device, such as a smartphone, allowing the user to download the captured keystrokes remotely.
On Jan. 12, 2021, Pelton installed the keylogger devices at his place of employment on two computers in a control room accessible only via an access badge. According to court records, Pelton installed one keylogger on a control room computer connected to the internet and the utility’s internal network and the other on a second computer used in the delivery of services. Court documents state that the keyloggers would allow Pelton to capture an administrator’s password and access features that he otherwise was unable to access.
According to court documents, one of the computers Pelton installed a keylogger on collected data regarding the use of the utility’s electrical system. The Operators at the utility have the capability to turn the power on and off throughout the network, and, if done incorrectly or inappropriately, an Operator could damage the transmission system, injure employees and possibly negatively impact the energy grid.
On May 24, 2021, Pelton was interviewed by FBI agents at his home regarding his use of the devices. According to court records, Pelton told agents that he did not know what keyloggers were nor their function. Pelton also denied researching keyloggers and stated that he did not remember purchasing or receiving the devices. Court documents state that these claims were false, and Pelton made them knowing that they were false.
Pelton is scheduled to be sentenced on November 16, 2022, before U.S. District Judge David A. Ruiz.
This case was investigated by the Cleveland FBI. This case is being prosecuted by Assistant U.S. Attorneys Segev Phillips and Daniel J. Riedl.
Kent Man Sentenced for Piloting Aircraft Without Valid CertificateRead the Press Release
A Kent man was sentenced to two years of probation and one weekend of intermittent confinement after he previously pleaded guilty to flying an airplane without a valid airman’s certificate in June 2019. Delbert Garfield Stewart, 71, was sentenced by U.S. District Judge Solomon Oliver, Jr., on Monday, August 8, 2022, and was also ordered to pay a fine of $5,000.
According to court documents, on three separate occasions, between June 2019 and March 2021, Stewart piloted a Bellanca Model 17-30A single-engine aircraft without a valid certificate. Court records show that Stewart obtained a private pilot certificate through the Federal Aviation Administration (FAA) in 1978. Additionally, court documents state that Stewart purchased the Bellance aircraft in October 2010, registered to his address in Kent, Ohio.
On November 14, 2013, the FAA notified Stewart of a 180-day suspension of his pilot certificate due to numerous FAA violations, specifically those that occurred during a September 2, 2013, flight from Paulding Northwest Atlanta Airport in Atlanta, Georgia, to Portage County Airport in Ravenna, Ohio.
During this incident, the FAA stated that Stewart piloted his aircraft under conditions in which he was not authorized to fly and climbed to an elevation without notifying air traffic control. Stewart responded to the FAA notice claiming that the FAA did not have jurisdiction over him as a private individual not engaged in commerce. The FAA suspended Stewart’s certificate on February 6, 2014. Stewart’s certificate remained suspended until the FAA revoked the certificate in October 2019, after Stewart had piloted the plane and landed without the landing gear fully extended.
Court records state that on separate occasions between June 2019 and March 2021, Stewart piloted his aircraft despite the February 2014 suspension and October 2019 revocation. Court documents describe these incidents as such:
- On June 20, 2019, Stewart piloted the aircraft from Portage County Regional Airport (KPOV) in Ravenna, Ohio, and landed at the Warsaw Indiana Airport (KASW) in Warsaw, Indiana. While in Indiana, Stewart flew the aircraft on multiple flights with passengers on board.
- On July 5, 2020, Stewart piloted and landed the aircraft at KPOV with a passenger on board. An FAA official advised Stewart that his airmen certificate was revoked and that the airworthiness certificate for the aircraft was also suspended.
- On March 8, 2021, Stewart flew from Paulding Northwest Atlanta Airport (KPUJ) in Georgia to KPOV Airport. Prior to the flight, law enforcement advised Stewart that his airman certificate was revoked.
Prior to trial, Stewart filed motions to dismiss the charges against him, arguing, amongst other things, that neither Congress nor the FAA has the authority to regulate his conduct and their attempt to do so violated the Commerce Clause, as well as other Constitutional provisions. The Court denied the motions, finding that the Commerce Clause allowed Congress to pass laws regulating instruments of commerce, such as airplanes, even if the pilot was not flying for payment.
On April 18, 2022, Stewart was set to go to trial on the matter before Judge Solomon Oliver, Jr., in Cleveland. However, during jury selection, Stewart pleaded guilty to one count of flying an airplane without a valid airman's certificate on June 20, 2019.
This investigation was conducted by the U.S. Department of Transportation Office of Inspector General, Federal Aviation Administration, Department of Homeland Security, and Ohio State Highway Patrol. This case was prosecuted by Assistant United States Attorneys Damoun Delaviz and Brad Beeson.
U.S. Attorney’s Office Collects More Than $620k in Restitution from Defendant in Penny Stock Fraud SchemeRead the Press Release
First Assistant U.S. Attorney Michelle M. Baeppler announced that the Financial Litigation Program (FLP) of the U.S. Attorney’s Office for the Northern District of Ohio collected full restitution in the amount of $624,122.15 from a defendant convicted of participating in a securities fraud scheme that caused a $39 million loss to investors.
According to court records, a notice of judgment satisfaction was approved for Defendant Justin Esposito, of Thornwood, New York, on Saturday, August 6, 2022. In 2016, Esposito and other codefendants were convicted of orchestrating a penny-stock fraud scheme that resulted in a $39 million loss to investors in the Northern District of Ohio and elsewhere.
As part of his role in the scheme, Esposito cold-called potential investors and sold stock in public companies that he knew were being manipulated. Esposito was paid commission from coconspirators for these sales.
In January 2017, Esposito was ordered to pay $624,122.15 in restitution to the defendants for his role in the scheme.
This case was investigated by the FBI. The financial litigation was handled by Assistant U.S. Attorney Suzana K. Koch. This case was criminally prosecuted by Assistant U.S. Attorney Brian M. McDonough.
The U.S. Attorney’s Office is 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 Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Akron Man Sentenced to 40 Years in Prison for Sexual Exploitation of Children and Receipt and Possession of Child PornographyRead the Press Release
Joshua Allen Saunders, 27, of Akron, Ohio, was sentenced to 40 years in prison by U.S. District Judge John R. Adams on Thursday, August 4, 2022. Saunders previously pleaded guilty to two counts of sexual exploitation of children and one count of receipt and distribution of visual depictions of minors engaged in sexually explicit conduct.
In addition to the sentence, Saunders was ordered to serve a lifetime of supervised release and must pay $55,000 in restitution.
“There is no greater priority for all of law enforcement than protecting our community’s children from harm and predators,” said First Assistant U.S. Attorney Michelle M. Baeppler. “This lengthy sentence will ensure that this predator will no longer harm children and should send a message that this type of behavior only ends with significant time behind bars.”
“Identifying, investigating, and catching child predators is a critical part of our mission,” said Cleveland FBI Special Agent in Charge, Gregory Nelsen. “The conniving conduct and domineering behavior Saunders exerted over his victims is detestable. The FBI is proud to collaborate with our federal, state, and local partners to ensure thorough investigations are conducted and we eliminate criminal behavior that exploits children.”
According to court documents, federal authorities began an investigation into Saunders after receiving information that he was involved in distributing child sexual abuse materials online. On November 2, 2021, authorities executed a search warrant on Saunders at a residence in Akron. During the search, agents seized and reviewed the contents of Saunders’ cell phone and observed two videos of Saunders engaged in sexual conduct with a minor.
The case was investigated by the Akron FBI and the Ohio Internet Crimes Against Children Task Force. This case was prosecuted by Assistant U.S. Attorney Michael A. Sullivan.
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Former Mahoning County Physician Sentenced to 25 Years in Prison for Illegally Prescribing Controlled Substances and Causing the Deaths of Two PatientsRead the Press Release
CLEVELAND - Martin Escobar, 58, a former Mahoning County physician, was sentenced today to 25 years in prison by U.S. District Judge Donald C. Nugent after he previously pleaded guilty to 54 counts of illegally prescribing controlled substances—including two counts of distributing controlled substances that caused the deaths of two patients and one count of distributing a controlled substance to a person under the age of 21—and 31 counts of health care fraud.
“Mr. Escobar repeatedly distributed dangerous and highly addictive controlled substances to his patients and ignored signs of addiction and other red flags that his actions were causing harm to those who entrusted him with their care, and falsifying justifications for issuing prescriptions he knew should never have been written,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Due to his behavior, two patients died from overdosing on the drugs he illegally prescribed to them. Our community is safer with Mr. Escobar now behind bars.”
“Violating a position of trust compounded by willfully neglecting the Hippocratic oath is cruel and cowardly,” said FBI Cleveland Special Agent in Charge, Gregory Nelsen. “The sentence underscores the FBI’s unwavering commitment to investigating criminal activities and corrupt individuals that prey on innocent persons and endanger countless people. Whether one individual or a network of criminals, the valuable partnerships the FBI holds with federal, state and local law enforcement continues to protect the public and make our communities safer.”
“Escobar’s disregard for the well-being of those under his care caused the death of two vulnerable patients and endangered the health of many others,” said Mario M. Pinto, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General. “We will continue to work with our law enforcement partners to pursue medical professionals who fuel the opioid epidemic and neglect the care of their patients.”
According to court documents, between March 2015 and October 2019, Escobar prescribed controlled substances out of his Lake Milton medical office, including opioids such as oxycodone and hydrocodone, often in combination with benzodiazepines and stimulants, and did so outside the usual course of professional practice and without a legitimate medical purpose.
Escobar used false diagnoses, falsified patient pain intensity scales in medical charts, increased dosages of controlled substances and prescribed painkillers for prolonged periods without evidence of efficacy to support his unlawful prescription practices. Furthermore, Escobar failed to pursue treatment options other than controlled substances and falsely claimed to have performed extensive physical examinations on his patients.
Escobar also ignored warning signs of patients’ drug addiction and abuse. This included ignoring the results of his patients’ urine drug screen tests, many of which Escobar ordered and had performed in his own medical office so that he could bill the government for the tests. These tests suggested that patients were abusing the drugs that Escobar had prescribed, using other controlled substances and selling their prescription drugs on the illegal secondary market. As a result, Escobar was charged and pleaded guilty to health care fraud in connection with the illegal prescribing and urine drug screen tests.
In addition, in July 2015 and 2016, Escobar unlawfully prescribed opioids and other controlled substances to two patients without a legitimate medical purpose. Both patients later fatally overdosed from those drugs. In another instance, in April of 2018, Escobar unlawfully prescribed opioids to an individual under the age of 21 without a medical need.
“This guy thought he could outsmart the system by concealing his drug dealing behind a doctor’s coat – thankfully, our many partners in the investigation followed the paper trail of his prescription pad and stopped his scheme,” said Ohio Attorney General Dave Yost. “This doctor will do no further harm behind bars, and Ohio’s taxpayers will benefit with less fraud in the healthcare system.”
The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, the Ohio Attorney General’s Healthcare Fraud Section and the Ohio Board of Pharmacy. This case was prosecuted by Assistant U.S. Attorneys Elliot Morrison, Michael L. Collyer, Brendan O’Shea and Special Assistant U.S. Attorney Jonathan L. Metzler of the Ohio Attorney General’s Office.
Former Erie County Sheriff Sergeant Charged with Deprivation of RightsRead the Press Release
First Assistant U.S. Attorney Michelle M. Baeppler announced that a former Sergeant with the Erie County Sheriff’s Office was charged in a one-count indictment with deprivation of rights.
According to the indictment, Adam Bess, 34, of Sandusky, is accused of choking a victim while acting under the color of law on or about November 1, 2021. The indictment states that Bess, acting as a law enforcement officer, willfully used unreasonable force on the victim. It is alleged that, as a result of this offense, the victim suffered bodily injury.
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.
This case was investigated by the Toledo FBI and the Erie County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorneys Michael J. Freeman and Tracey B. Tangeman.
Akron Man Charged with Buying House and Tesla with Drug Trafficking Proceeds and Defrauding SBARead the Press Release
An Akron man was arrested today and charged in a 26-count indictment with using proceeds obtained from the sale of controlled substances and a wire fraud scheme to purchase a residence in Akron and a Tesla vehicle on separate occasions.
Nicholas R. Crawford, 41, of Akron, Ohio, was charged with 23 counts of money laundering, one count of wire fraud, one count of theft of government funds and one count of engaging in monetary transactions in property derived from specified unlawful activity.
According to the indictment, in June 2018, it is alleged that the defendant purchased a home for $325,000 in Akron, Ohio, using funds that contained proceeds derived from drug trafficking. The indictment states that the defendant knew the proceeds involved were obtained through unlawful means and initiated wire and electronic transfers with the intent to conceal the nature of the drug trafficking funds.
Additionally, the indictment alleges that in July 2020, the defendant defrauded the Small Business Administration (SBA) by submitting a fraudulent COVID-19 Economic Injury Disaster Loan (EIDL) application with fictitious information in order to receive relief funding to which he was not entitled. It is alleged that the defendant intentionally misrepresented personal and financial information in order to obtain an SBA EIDL loan. The indictment states that the defendant then used $105,500 in SBA EIDL loan funding for personal expenses despite certifying that the loan proceeds would only be used for designated business expenses.
In December 2020, court records state that the defendant purchased a 2020 Tesla Model X, using proceeds from the EIDL loan and from the sale of controlled substances.
Crawford is scheduled to be arraigned today before of Judge Donald C. Nugent in Cleveland.
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.
This case was investigated by the FBI, IRS Criminal Investigations (CI) and Akron Police Department. This case is being prosecuted by Assistant U.S. Attorney Damoun Delaviz.