Northern District of Ohio
Press releases recorded for this federal judicial district.
Jury finds former Summit County councilwoman guilty of taking bribes and related crimesRead the Press Release
A former Summit County councilwoman was convicted of taking cash bribes in exchange for trying to influence court proceedings and investigations, said U.S. Attorney Carole S. Rendon and FBI Special Agent in Charge Stephen D. Anthony.
A jury, following a weeklong trial, convicted Tamela Lee on all six counts: conspiracy to commit honest services mail and wire fraud, honest services mail fraud, Hobbs Act conspiracy, violating the Hobbs Act, obstruction of justice and making false statements to law enforcement.
Lee, 58, of Akron, is scheduled to be sentenced on May 26.
“This is a public official who used her office to line her pockets and fill her bank account,” Rendon said. “She violated the public’s trust and will now have to answer for her actions.”
“Ms. Lee must be held accountable for their crimes,” Anthony said. “She was supposed to lawfully represent the people that elected her, but rather, was motivated by her own self interests. The FBI will continue to root out public corruption, whether it is elected officials that violate their oath and the law or citizens that bribe them to do so.”
Lee solicited and accepted things from Omar Abdelqader, including money, loans, campaign contributions, home improvements, home maintenance and consumer goods. These were provided directly by Omar Abdelqader, or through Bi-Rite, according to court documents and testimony.
In return, Lee performed and promised to perform official acts for Omar Abdelqader and other businesses in Akron for which he served as a conduit to Lee. These actions included helping Omar Abdelqader and his designees navigate government bureaucracy, achieve favorable outcomes in judicial and administrative proceedings and obtain streamlined access to information, according to court documents and testimony.
Omar Abdelqader was affiliated with several convenience stores and other businesses in the Akron area, including the Bi-Rite on Diagnonal Road. Abdelrahman. Abdelqader is his brother and Samir Abdelqader is his nephew, according to court documents.
On June 8, 2014, Omar and Samir Abdelqader discussed Samir obtaining a bond regarding criminal charges he was facing. About 40 minutes later, Omar and Lee discussed the councilwoman emailing or calling the judge. On June 12, Lee called Judge 2’s chambers several times. The next day Lee asked Omar for money, and he directed her to the Bi-Rite to collect the money, according to court documents and testimony.
On June 14, 2014, Lee sent a text message to Omar informing him that the judge and bailiff returned her call. She then sent a text message to Omar stating: “I am going to bed, I am angry and frustrated and broke…bye,” according to according to court documents and testimony.
Later that day, Omar instructed Lee to send her daughter to the Bi-Rite to pick up cash. Three days later, Lee spoke to Judge 2 and told the judge she was related to Samir Abdelqader, according to court documents and testimony.
In July 2014, Lee and Omar spoke repeatedly about fundraising for her campaign. Omar told Person 9 that he had collected $800 in donations for Lee. Omar explained the Lee provided service. “In other words, I am keeping her because we need her, man,” Omar told Person 9, who responded: “She is better than an attorney to us!” according to court documents and testimony.
Omar Abdelqader, of North Canton, Abdelrahman Abdelqader, of Canton, and Samir Abdelqader, of Fairlawn, have pleaded guilty to crimes related to this case.
This case was prosecuted by Assistant U.S. Attorneys Linda Barr and Adam Hollingsworth following an investigation by the Federal Bureau of Investigation, with assistance from the Akron Police Department.
Three men indicted for heroin and cocaine conspiracyRead the Press Release
Three men were indicted for their roles in a conspiracy to traffic heroin and cocaine, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and FBI Special Agent in Charge Stephen D. Anthony.
Indicted on charges of conspiracy to possess with intent to distribute heroin and cocaine are Gary R. Hill, Sr., 62, of Lathrup Village, Mich.; Leroy L. Hooker, 47, and Larry E. Stewart, 50, both of Toledo, Ohio.
The defendants had more than a kilogram of heroin and five kilograms of cocaine in December 2016, according to the indictment.
“We will continue to seek long prison sentences for drug traffickers,” Rendon said. “Aggressive enforcement, coupled with increased access to treatment for those who want help, changes in prescribing practices and more education are all required to combat the opioid epidemic that his devastated our state.”
“Unfortunately, heroin and cocaine continue to plague our communities,” Anthony said. “Law enforcement will hold these individuals, and any others, that bring illegal narcotics to our streets accountable in a court of law.”
If convicted, the defendants’ sentences will be determined by the court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, in Toledo. The case is being handled by Assistant United States Attorneys Thomas P. Weldon and Alissa M. Sterling.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Pennsylvania man indicted for traveling to Ohio to have sex with 15-year-oldRead the Press Release
A Pennsylvania man was indicted on charges that he enticed and traveled with the intent of engaging in illicit sexual conduct with a child, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Carmen J. Sagnimeni, 38, of Mercer, Penn., knowingly used a cellular phone with Internet connectivity to attempt to persuade, induce, entice and coerce an underage girl to engage in illegal sexual activity with him. The indictment also charges on Dec. 15, 2016, Sagnimeni knowingly traveled from Pennsylvania to Ohio for the purpose of engaging in illicit sexual conduct with a 15 year‑old girl, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Ohio Internet Crimes Against Children Task Force and the Department of Homeland Security, Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mansfield couple indicted for sexual exploitation of a childRead the Press Release
A Mansfield couple was indicted on charges related to sexual exploitation of a child, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and FBI Special Agent in Charge Stephen D. Anthony.
Gary L. Fisher, 43, and Amy E. Glaze, 41, both from Mansfield, were charged with sexual exploitation of a child and destruction of evidence. Fisher was also charged with committing a felony offense involving a minor while being a registered sex offender.
Fisher and Glaze, did use, persuade, entice and coerce a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. This took place from Aug. 1, 2016, through Nov. 21, 2016, according to the indictment.
Fisher and Glaze also knowingly altered, destroyed, concealed, and covered up any record, document, or tangible object, to wit: LG smartphone S/N 601VTYK1346642, a SanDisk microSD card, and the digital files contained thereon, with the intent to impede, obstruct, and influence the investigation and proper administration of any matter within the jurisdiction of any department or agency of the United States. This took place between Dec. 31, 2016, through Jan. 9, 2017, according to the indictment
Fisher, being required by Ohio law to register as a sex offender, committed a felony offense involving a minor between Aug. 1, through Nov. 21, 2016, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the Mansfield and Canton offices of the Federal Bureau of Investigation, the Mansfield and Canton Police Departments and the Pennsylvania State Police.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland tax preparer charged for claiming $800,000 in fraudulent tax refundsRead the Press Release
A Cleveland woman was charged in federal court for aiding and abetting the filing of false tax returns, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Troy Stemen, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Leona T. Moore, 38, aka, Leona McDonald, was charged via criminal information with 34 counts of aiding and sssisting in the preparation of false income tax returns. The information alleges that for the tax years 2013 through 2015, Moore caused the IRS to issue over $800,000 in fraudulently obtained refunds.
Moore operated a tax preparation business known variously as Leona Moore Tax Services or Moore’s Tax Service. Moore obtained clients by word of mouth and through Facebook.
Moore filed tax returns for clients containing various false statements, including, among others, false information about self-employment, false and inflated information about the amount of income and false information about the number of dependents, all in order to generate false refunds based on the Earned Income Credit and/or the Additional Child Credit, according to the information.
Moore split the fraudulently obtained refunds with her clients, according to the information.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This case is being prosecuted by Assistant U.S. Attorney Ann C. Rowland following an investigation by the Internal Revenue Service – Criminal Investigation.
Cleveland man indicted for having carfentanil, fentanyl and cocaineRead the Press Release
A Cleveland man was charged in a five-count indictment for having carfentanil, fentanyl and cocaine with the intent of selling drugs, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Timothy Plancon, Special Agent in Charge of the Drug Enforcement Adminstration’s office that oversees Ohio.
Dashawn Elder, 21, was arrested on Nov. 28 and found to have carfentanil, fentanyl, cocaine, as well as a firearm and other drugs, according to court documents.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
Assistant U.S. Attorney Matthew J. Cronin is prosecuting the case following an investigation by the DEA.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three indicted on federal firearms chargesRead the Press Release
Three men were indicted on firearms charges in unrelated cases, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Joseph Crockett, 30, of Youngstown, was charged with being a felon in possession of a firearm and ammunition.
Ricky D. Williams, 25, of Youngstown, was charged with being a felon in possession of a firearm and ammunition.
Robert Shepper, 32, of Mogadore, was charged with possession of an unregistered short-barreled firearm.
Crockett possessed a Walther, model PPX, 9mm caliber pistol, and ammunition on Nov. 21, 2016, after having been convicted of distribution of crack cocaine in U.S. District Court, Northern District of Ohio, in 2008, according to the indictment.
Williams possessed a Taurus, model Millenium Pro, 9mm pistol, and ammunition on Dec. 1, 2016, after having been convicted of robbery, in the Lawrence County (Pennsylvania) Common Pleas Court, in 2011, according to the indictment.
Shepper on May 17, 2016 possessed an Armalite Inc., Model M15, 5.56 mm rifle, with a barrel less than 16 inches long, and not registered to him in the National Firearms Registration and Transfer Record, as required by law, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
Assistant U.S. Attorney David M. Toepfer is prosecuting all three cases. The Crockett and Williams cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Youngstown Police Department. The Shepper case was investigated by the ATF and Ohio State Highway Patrol.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three people sentenced to prison for bank robbery, kidnapping and hostage situation in Richland CountyRead the Press Release
Three people were sentenced to prison for their roles in a 2015 bank robbery, kidnapping and hostage situation, said U.S. Attorney Carole S. Rendon and FBI Special Agent in Charge Stephen D. Anthony.
Taylor Crisman, 19, of Galion, was sentenced to 37 years in prison.
Chris Hill, 24, of Galion, was sentenced to 25 years in prison.
Sarah J. Garrett, 42, of Bucyrus, was sentenced to 2 ½ years in prison.
Crisman broke into the home of the manager of the KeyBank branch in Ontario and held his family hostage at gunpoint on Nov. 5, 2015. The manager came home later that evening and was also held hostage overnight, according to court documents and testimony.
On the morning of November 6, 2015, Crisman, in consultation with Hill, ordered the manager to travel to the bank on Lexington-Springmill Road, remove a large sum of money from the vault and return home. The suspect held the bank employee’s wife and small children hostage until he returned home with the money, according to court documents and testimony.
Crisman then notified Hill to pick him up from home, which he did. Crisman, Hill and Garrett counted the money later that evening, according to court documents and testimony.
Garrett worked at Marion County Family Court. She used her position to improperly search the Ohio Law Enforcement Gateway and provide the robbers with the address of the bank manager, according to court documents and testimony.
“These defendants deserve every single day of these prison sentences,” Rendon said. “They terrorized an innocent family all for greed. The victims in this case are to be commended for the bravery and grace they showed in court today and in the aftermath of this unprovoked attack.”
“We are very pleased with the sentences given to these defendants today,” Anthony said. “The FBI hopes these lengthy prison sentences send a clear message to anyone considering committing such heinous acts -- think again and don't do it.”
The defendants stole $194,845 from the bank. Authorities recovered $171,058. U.S. District Judge Donald C. Nugent ordered the defendants to pay the remaining $23,787 in restitution.
Crisman and Hill were found guilty of bank robbery, kidnapping, hostage taking and brandishing a firearm in relation to commission of a felony, among other crimes.
Garrett pleaded guilty to receipt of ransom money and misprision of a felony.
This case was prosecuted by Assistant U.S. Attorneys Linda Barr and Benedict Gullo following an investigation by the FBI, the Ontario Police Department and the Richland County Sheriff’s Office.
Richfield man indicted for using business accounts to buy high-end vehicles, underpay taxes by $350,000Read the Press Release
A Richfield man was indicted on charges that he illegally failed to pay nearly $350,000 in income taxes by using a business account to pay personal expenses over nearly a decade, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.
James M. Pelagalli, 60, was indicted on one count of attempt to evade or defeat payment of tax. Pelagalli used various business names and entities to conceal income and assets, according to the indictment.
For example, he used business accounts he controlled to pay for personal expenses, including the purchase of a 2008 Lamborghini Gallardo, lease payments on personal vehicles such as a 2010 Cadillac CTS, a 2010 Mercedes-Benz S550 sedan and a 2013 Cadillac XTS, and rental payments for a personal residence.
He failed to pay approximately $348,388 in income tax for calendar years 2002, 2003, 2005 through 2009, and 2011, according to the indictment
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Internal Revenue Service in Toledo. case is being prosecuted by Assistant United States Attorneys Noah P. Hood and Robert J. Patton.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Pennsylvania man indicted on drug and firearms chargesRead the Press Release
A Pennsylvania man was indicted on drug and firearms charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Michael Betts, 35, of New Castle, Penn., was charged with possession with the intent to distribute crack cocaine and heroin, and with being a felon in possession of a firearm and ammunition.
Betts possessed with the intent to distribute crack cocaine and heroin on Nov. 28, 2016, according to the indictment.
On the same date, Betts possessed a Sig Sauer, model 1911, .45 caliber pistol and ammunition, despite a prior conviction for assault with intent to do great bodily harm in Michigan in 2002, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Salem Police Department. The matter is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Detroit man indicted for selling carfentanil that killed Marion manRead the Press Release
A Detroit man was indicted for selling carfentanil that killed a man in Marion last year, law enforcement officials said.
Ronald Dale Wilson, Jr., 24, was charged in U.S. District Court with drug trafficking and drug trafficking that resulted in death.
Wilson possessed carfentanil and cocaine on Oct. 31. 2016. Wilson sold cocaine and carfentanil on that day to an individual identified as K.C., which resulted in K.C.’s overdose death, according to the indictment.
“We will continue to seek long prison sentences for drug traffickers who kill our neighbors and destroy our families,” U.S. Attorney Carole S. Rendon said. “Aggressive law enforcement is one component to confronting the opioid epidemic, along with increased education, changing prescribing practices and making treatment available to those who want help.”
FBI Special Agent in Charge Stephen D. Anthony said: “Heroin use continues to increase in astonishing proportions with overdose deaths in Ohio being among the highest in the country. Individuals, like Ronald Dale Wilson, Jr., will be held accountable for selling illegal drugs that kill. Efforts to rid the streets of heroin and other dangerous drugs remains a top priority for the FBI, our law enforcement partners, and the community.”
“We hope word is getting out that if you sell drugs in Marion and cause the death of another you are looking at a possible 20-year sentence," Marion Police Chief Bill Collins said. “We hope this proves to be a stronger deterrent to the thugs who choose to sell drugs in Marion.”
The charges include an enhanced penalty specification which could result in a mandatory minimum sentence of 20 years in prison. If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum.
This case was investigated by the Federal Bureau of Investigation and the Marion Police Department. The case is being prosecuted by Assistant United States Attorney Michael J. Freeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Convicted felon faces charges for having fentanyl and firearmsRead the Press Release
A man with residences in Akron and Barberton was indicted on firearms and fentanyl charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Anthony J. Board Jr., 33, was indicted on one count of possession with the Intent to distribute fentanyl and one count of being a felon in possession of firearms and ammunition. Board, Jr., age 33, resided at homes in Barberton, and Akron, Ohio.
Akron Police Department Narcotics Unit Detectives along with Drug Enforcement Administration Task Force Officers executed a state search warrant at Board Jr.’s residence in Akron on Dec. 14, 2016 and recovered approximately 25 grams of fentanyl as well as two firearms and a bullet-proof vest, according to court documents.
Barberton Police Narcotics Detectives along with Drug Enforcement Administration Task Force Officers executed a state search warrant the same day at Board Jr.’s residence in Barberton. They recovered two additional firearms, including a semi-automatic rifle, according to court documents.
Board was prohibited from possessing firearms and ammunition because he has several prior felony convictions, including burglary, escape, improper discharge of a firearm and other crimes.
The investigation preceding this indictment was conducted by the Akron Police Department Narcotics Unit, the Barberton Police Department and the Drug Enforcement Administration, Akron, Office. matter is being prosecuted by Assistant United States Attorney Aaron P. Howell.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the United States of America’s burden to prove each defendant’s guilt beyond a reasonable doubt.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense and the characteristics of the violations.
Canton man indicted on firearms and drug chargesRead the Press Release
A Canton man was indicted on federal drug and firearms charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Eric L. McReynolds, 46, was indicted on four counts of possession with the intent to distribute crack cocaine, one count of being a felon in possession of firearms and ammunition and one count of possession of firearms in furtherance of a drug trafficking offense.
McReynolds possessed crack cocaine, several firearms and other items indicative of drug trafficking on September 15, 2016. was prohibited from possessing firearms and ammunition because he has prior felony convictions for robbery and aggravated robbery, according to the indictment.
The investigation preceding this indictment was conducted by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives. matter is being prosecuted by Assistant United States Attorney Aaron P. Howell.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the United States of America’s burden to prove each defendant’s guilt beyond a reasonable doubt.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense and the characteristics of the violations.
Three Cleveland men sentenced to prison for more than a decade for armed robberies in Solon, Bath and North OlmstedRead the Press Release
Three Cleveland men were sentenced to prison for more than a decade for committing armed robberies in Solon, Bath and North Olmsted, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division.
Stephone D. Tillman, 25, Matthew S. Bowen, Jr., 25, and Christopher R. Jones, 26, were previously found guilty of multiple counts of interfering with interstate commerce by means of robbery and brandishing firearms during a crime of violence. Tillman was found guilty of being a felon in possession of a firearm.
Tillman was sentenced to 20 years in prison.
Bowen was sentenced to nearly 13 years in prison.
Jones was sentenced to nearly 11 years in prison.
“These men deserve to be locked up for a long time after using loaded guns to rob hard-working people,” Rendon said.
“There is no place in our society for those who use firearms for illegal purposes,” Velinor said. “The cooperative efforts between ATF and the Solon, North Olmsted, and Bath Police Departments are a positive example that we have more impact when we work together to bring violent criminals to justice.”
Tillman, Bowen, and Jones robbed the Circle K, located at 29605 Aurora Road, in Solon, on September 15, 2015.
On October 3, 2015, Bowen and Tillman robbed the Zip Thru drive-through store located at 30781 Lorain Road, in North Olmsted.
On October 8, 2015, all three defendants robbed the Circle K, located at 791 Cleveland-Massillon Road, in Bath, according to court documents.
Each of the robberies involved the use of a firearm, according to court documents.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation in conjunction with the Solon, North Olmsted, and Bath Police Departments. The case is being prosecuted by Assistant United States Attorneys Kevin R. Filiatraut and Kelly L. Galvin.
Former Linndale police officer sentenced to more than three years in prison for drug crimesRead the Press Release
A former part-time Linndale police officer was sentenced more than three years in prison for transporting large amounts of MDMA and marijuana, law enforcement officials said.
Jonida Alicka, 29, of Rocky River, was sentenced to 41 months in prison by U.S. District Judge Dan Aaron Polster. She was also ordered to forfeit two firearms and cash seized during her arrest last year.
Alicka was previously found guilty of possession with intent to distribute MDMA and marijuana.
Alicka and her sister Denisa Alicka engaged in multiple sales of MDMA and marijuana between 2014 and 2016. The Alickas obtained the drugs through Rinald Turhani and Leka Konini, both from Michigan, according to court documents.
Jonida Alicka also obtained MDMA from her boyfriend who in Canada. She also traveled to New York to pick up MDMA and transport it back to Ohio and then distributed the narcotics throughout Ohio, according to court documents.
Turhani was found guilty of drug charges and is serving nine years in prison. Konini and Denisa Alicka have been found guilty of charges and are awaiting sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Marisa T. Darden and Robert F. Corts following an investigation by the FBI, Cleveland Division of Police, Ohio HIDTA, Rocky River Police, Parma Police and U.S. Border Patrol.
Eight people sentenced to prison for penny-stock fraud that resulted in $39 million loss to investorsRead the Press Release
Eight people were sentenced to prison this month for their roles in a penny-stock fraud that resulted in a $39 million loss to investors, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Zirk de Maison, of Redlands, California, was sentenced to more than 12 years in prison and ordered to pay $39.1 million in restitution.
Stephen Wilshinsky, of Woodland Hills, California, was sentenced to nearly three years in prison and $4.2 million in restitution.
Talman Harris, of Monroe, Connecticut, after a jury convicted him on all counts following a three-week trial, was sentenced to more than five years in prison and $843,423 in restitution.
Gregory Goldstein, of Stevenson Ranch, California, was sentenced to nearly three years in prison and $6.3 million in restitution.
Jack Tagliafero, of Glen Cove, New York, was sentenced to more than five years in prison and more than $5 million in restitution.
Victor Alfaya, of Port Washington, New York, was sentenced to nearly two years in prison and $3.6 million in restitution.
Kieran Kuhn, of Port Washington, New York, was sentenced to nearly four years in prison and $5.6 million in restitution.
William Scholander, of Queens, New York, was sentenced to nearly two years in prison and $843,423 in restitution.
Two additional co-conspirators have their sentencings scheduled for February and July 2017.
de Maison and the other defendants conspired to defraud investors and potential investors in several public issuers, including Kensington Leasing, Ltd., Lenco Mobile, Casablanca Mining, Ltd., Lustros, Inc., and Gepco Ltd., (the manipulated companies), by issuing millions of shares to themselves at little or no cost and then artificially controlling the price and volume of traded shares by, among other means, paying undisclosed commissions to brokers, former brokers, and boiler-room operators and promoters, for soliciting investors to make investments in, and fraudulently concealing the ownership interests of, the manipulated companies, according to court documents.
Little or no portion of the investments went to fund the operations of the manipulated companies. Rather, de Maison and the co-conspirators used most of the investments to enrich themselves, according to court documents.
For each of the manipulated companies, de Maison and other co-conspirators controlled a substantial number of outstanding shares through their personal companies, co-conspirators, and associates over which they had influence and control.
Many of the defendants were brokers and former brokers who abused their client relationships to solicit and induce investors to purchase de Maison’s stock in the manipulated companies at what they knew to be artificially inflated values. In exchange, de Maison paid the brokers and former brokers enormous, illegal kickbacks, often as large as 50% of the investment, which were never disclosed to the client-investors.
Other defendants either owned or worked in what were commonly referred to as boiler rooms. For instance, Kuhn owned and operated a boiler room called Small Cap Resources in New York City, where he employed promoters to cold call and solicit potential investors to purchase shares of the manipulated companies. de Maison and others dictated what stocks Kuhn and others pushed. The cold calls to potential investors typically coincided with favorable press releases or other information that de Maison caused to be released, according to court documents.
Kuhn and others touted the manipulated companies using high-pressure sales tactics and misrepresentations about the value of the companies and their stock. The boiler room promoters did not disclose that de Maison and other co-conspirators paid them commissions on the sale of the stock to the investors, either on the open market or through private placements, according to court documents.
de Maison and his co-conspirators caused more than $54 million to be invested in the purchase of stock in the manipulated companies and caused a loss to investors in the amount of approximately $39 million from the scheme. de Maison profited through the fraudulent scheme relating to the companies’ stocks. He received and embezzled approximately $39 million in investor monies, according to court documents.
The case was prosecuted by Assistant U.S. Attorneys Christos N. Georgalis, Paul M. Flannery, and Adam Hollingsworth after an investigation by agents of the Federal Bureau of Investigation.
Mother and son convicted of $7 million healthcare fraud schemeRead the Press Release
A mother and son were convicted of crimes related to a $7 million home healthcare fraud conspiracy in which they provided forged documents and fraudulent forms to bill for services that were not provided.
Delores L. Knight, 70, of Cleveland Heights and Isaac R. Knight, 29, of Macedonia were convicted following a trial of conspiracy to commit healthcare fraud and health care fraud. Delored Knight was also convicted of multiple counts of money laundering.
Delores Knight owned Just Like Familee II, Inc., and Just Like Familee III, Inc., which she incorporated in 2005 and 2006, respectively, to provide home health services for elderly and disabled clients. Isaac Knight served as manager. The companies had locations at various times in Cleveland Heights, Twinsburg and Mentor, according to court documents.
Together they defrauded Medicaid, Medicare and the Department of Veteran Affairs out of more than $7 million as a result of the conspiracy in which they prepared and submitted forged or false records in support of previously submitted and reimbursed billings for patients they did not actually provide face-to-face services, according to trial testimony and court documents.
“These defendants stole millions of dollars by billing for services they never provided,” said U.S. Attorney Carole S. Rendon. “We will do our best to get whatever assets they have and make sure they go to prison.”
The defendants are expected to be sentenced later this year.
Prosecutors are seeking to forfeit all money that was illegally obtained, as well as a home at 1048 Morning Glory Drive in Macedonia owned by Delores L. Knight.
This case was prosecuted by Assistant U.S. Attorneys Mark Bennett and James L. Morford and Special Assistant U.S. Attorney Maritsa Flaherty following an investigation by the Department of Health and Human Services, the FBI, the IRS, the Department of Veteran’s Affairs and the Ohio Attorney General’s Office.
Elyria man indicted for tampering with hearingRead the Press Release
An Elyria man was indicted on one count of tampering with an official proceeding, said U.S. Attorney Carole S. Rendon.
Micah Jackson, 20, attempted to influence two federal witnesses to retract their previously sworn testimony on Nov. 9, 2016, according to the indictment.
The witnesses’ testimony was given at a supervised release violation hearing before a U.S. District Court judge. The defendant in the supervised release hearing was related to Jackson. Jackson attempted to influence each witnesses’ testimony by posting their pictures on Facebook with rat emojis above the witnesses’ faces, with the intent that each witness would change their previously sworn testimony, according to the indictment.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Benedict S. Gullo. The case was investigated by the United States Marshals Service and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man indicted for making illegal straw purchases of 24 firearms over two daysRead the Press Release
A Cleveland man was indicted for making illegal straw purchases of 24 firearms over two days, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio and Trevor Velinor, ATF Special Agent in Charge for the Columbus Field Division.
Carlton H. Nunn, 36, was indicted on one count of making false and fictitious statements regarding the sale of firearms.
Nunn purchased two dozen firearms from four dealers on Sept. 10 and 11, 2016, according to the indictment.
Nunn knowingly and unlawfully made false and fictitious statements, intended to deceive dealers, that he was the actual buyer of said firearms when, in fact, he was not the actual buyer of said firearms, according to the indictment.
“This defendant illegally bought two dozen firearms to provide to people with felony convictions,” Rendon said.
“ATF is committed to combating gun violence in our communities, including the individuals who provide firearms to people who are prohibited from having them,” Velinor said. “We will continue to work to make our communities safer by investigating and bringing to prosecution the individuals who enable violent criminals.”
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Megan R. Miller following an investigation by the ATF.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Akron man likely to be sentenced to 20 years in prison after admitting selling fentanyl obtained from China that resulted in fatal overdoseRead the Press Release
An Akron man will likely be sentenced to 20 years in prison after he admitted selling fentanyl obtained from China that resulted in a fatal overdose, law enforcement officials said.
Leroy Shuarod Steele, 36, pled guilty to conspiracy to possess with intent to distribute fentanyl and distribution of fentanyl.
The fentanyl Steele distributed resulted in the fatal overdose of a person identified only as T.R. on March 21, 2015 in Akron, according to court documents.
Steele, Sabrina M. Robinson and Ryan Sumlin conspired together between March and April of this year to possess and distribute fentanyl. They obtained fentanyl from suppliers in China and then distributed the drug to people in Akron, Fairlawn and elsewhere, according to court documents.
Sumlin faces an additional charge of distribution of fentanyl that caused the overdose death of someone in Akron on March 28, 2015, according to court documents.
Robinson has pled guilty in the case. Sumlin’s case is pending.
Steele and Robinson are scheduled to be sentenced on April 19.
“This is another human life lost to opioids brought to Ohio from China,” U.S. Attorney Carole S. Rendon said. “We will continue to push for long prison sentences for drug dealers who kill our neighbors and relatives, while also working to reduce the number of opioids on the street, making treatment more readily available and educating our community about the dangers posed by these drugs.”
This case is being prosecuted by Assistant U.S. Attorney Linda H. Barr following an investigation by the Drug Enforcement Agency, the Akron Police Department and the Fairlawn Police Department.
Akron man charged for failing to disclose service in unit involved in war crimes in the former YugoslaviaRead the Press Release
An Akron man was charged in federal court related to failing to disclose his involvement in a military unit engaged in war crimes in the former Yugoslavia, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Ilija Josipovic, 59, was charged in a two-count criminal information with possession of immigration documents procured by fraud.
Josipovic, on Feb. 1, 2012, possessed a Permanent Resident Card in his name, which he knew to be procured by means of a false claim and statement while obtaining an Ohio driver’s license at the Ohio Bureau of Motor Vehicles office 7744, located at 1030 East Tallmadge Avenue in Akron, according to the information.
Josipovic, on Sept. 10, 2014, he possessed a Permanent Resident Card in his name, which he knew to be procured by means of a false claim and statement while at his residence in Akron, according to the information.
In 2002, Josipovic omitted or failed to disclose his military service in the 6th Battalion, Zvornik Infantry Brigade, Army of the Republic of Srpska, which began around May 25, 1992 and continued until approximately 1996, according to the information.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Dept. of Homeland Security, Homeland Security Investigations. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Rocky River man indicted on methamphetamine and firearms chargesRead the Press Release
A Rocky River man was indicted on drug and firearms charges, said U.S. Attorney Carole S. Rendon and FBI Special Agent in Charge Stephen D. Anthony.
Jamshed Ahmad, 43, was arrested this morning. He was indicted on one count of possession with intent to distribute methamphetamine and one count of being a felon in possession of a firearm.
Ahmad had more than 50 grams of methamphetamine on July 12, 2016, according to the indictment.
On July 12, he possessed a Ruger LCP 380-caliber pistol and ammunition, despite a 2007 conviction for drug trafficking that made it illegal for him to have a firearm, according to the indictment.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the FBI.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mexican man charged for illegally re-entering the United StatesRead the Press Release
Abel Arturo Valdez-Parra, 35, of Mexico, was charged with illegal re-entry into the United States, said U.S. Attorney Carole S. Rendon.
Valdez-Parra was found in Ohio on Dec. 5, 2016, after having been removed from the U.S. in 2008, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigating agency in this case is the Bureau of Customs and Border Protection in Sandusky. The case is being handled by Assistant United States Attorney Michael J. Freeman.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Massillon man indicted for trafficking cocaineRead the Press Release
A federal grand jury returned a one-count indictment charging Antonio Cuevas-Baltazar, 21, of Massillon with possession with the intent to distribute cocaine, said U.S. Attorney Carole S. Rendon.
Cuevas-Baltazar possessed with the intent to distribute more than 500 grams of cocaine on Jan. 2, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Ohio State Highway Patrol. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Fairview Park man indicted for making threats against the President-ElectRead the Press Release
A grand jury returned an indictment charging Zachary Benson, 25, of Fairview Park, with one count of making threats against the President-Elect, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that Benson threatened to take the life of, and inflict bodily harm to, the President-Elect of the United States, on November 9, 2016.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to his case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Karrie D. Howard, and was investigated by the United States Secret Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Heights woman indicted for cocaine conspiracyRead the Press Release
A Cleveland Heights woman was indicted on cocaine trafficking charges, said U.S. Attorney Carole S. Rendon.
Rayvonna Taylor, 28, was indicted on one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine. This took place between August 2015 and May 2016, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the U.S. Postal Inspection Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Heights man sentenced to nearly six years in prison for identity theft and tax fraudRead the Press Release
A Cleveland Heights man was sentenced to nearly six years in prison for identity theft and tax violations, said U.S. Attorney Carole S. Rendon and Troy N. Stemen, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Darryl E. Farmer, 45, was found guilty last year of one count of conspiracy to defraud, nine counts of false tax claims, eight counts of aiding in the preparation of false tax returns, two counts of wire fraud and two counts of aggravated identity theft.
U.S. District Judge John Adams sentenced Farmer to 70 months in prison and ordered him to pay $100,230 in restitution.
Farmer held himself out as a neighborhood tax preparer who paid recruiters a “referral fee” to provide him identifications and personal identifiers of others. Farmer used this information to file false tax returns, including claiming tax credits for businesses that did not exist, according to court documents.
Farmer also opened multiple personal and business bank accounts, which he controlled, in the names of these various people in order to deposit the refunds from the tax returns he filed, according to court documents.
Farmer falsely claimed more than $100,000 from the IRS between 2010 and 2012, according to court documents.
“This defendant stole identities and stole from taxpayers,” Rendon said. “This prison sentence is a reflection of how wantonly he broke the law.”
“Individuals who commit refund fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law,” Stemen said. “IRS Criminal Investigation, along with the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury and blatantly disregard the victims of their schemes.”
This case is being prosecuted by Assistant U.S. Attorney Mark Bennett following an investigation by the IRS.
Two convicted killers from Canton indicted for drug and firearms crimesRead the Press Release
Two Canton men with prior homicide convictions were indicted on firearms and drug trafficking charges, law enforcement officials said.
Named in the seven-count indictment are Maurice A. Stewart, 39 and William W. Moore, 37. A third man, Jason E. Cousins, 45, also of Canton, was also indicted on a firearms charge.
Stewart and Moore are charged with possession with intent to distribute at least 500 grams of methamphetamine, cocaine and crack cocaine.
Stewart and Moore are also charged with using firearms in furtherance of drug trafficking crimes.
Moore was charged with being a felon in possession of a firearm. The indictment alleges that he had a Glock model 23 handgun, a Smith and Wesson SD9 handgun and ammunition on Nov. 17, 2016, despite a 2000 conviction for murder in Michigan.
Stewart was charged with being a felon in possession of a firearm. The indictment alleges that he had a Glock model 23 handgun, a Smith and Wesson SD9 handgun and ammunition on Nov. 17, 2016, despite a 2002 conviction for involuntary manslaughter in the Franklin County Court of Common Pleas.
Cousins was charged with being a felon in possession of a firearm. The indictment alleges that he had a Windham Weaponry AR-15 and Mossberg 12-gauge shotgun despite 2006 convictions for possession of cocaine and carrying a concealed weapon in the Summit County Court of Common Pleas.
The indictment seeks to forfeit the aforementioned firearms and ammunition, as well as Bullet Safe body armor and $10,904 in cash.
This case is being prosecuted by Assistant U.S. Attorney Aaron P. Howell following an investigation by the US Marshals Fugitive Task Force, the Canton Police Department, the FBI’s Canton office and the Drug Enforcement Administration’s Akron office.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Lisbon man sentenced to eight years in prison for defrauding investors out of $1 millionRead the Press Release
A Lisbon man was sentenced to more than eight years in prison for defrauding people out of more than $1 million and using the money to pay for luxury cars and expensive vacations, said U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Paul L. Shockley, 24, was found guilty last year of three counts of mail fraud.
“This defendant lived the high life by stealing the fruits of other peoples’ labor,” Rendon said. “His days of fleeing responsibility for his actions are over.”
Shockley operated multiple fraud schemes.
He established several companies, known collectively as D’Legato, that was a purported start-up venture that would operate an assisted living center. Neither Shockley nor any of his associates had operated an assisted-living center before. Shockley defrauded four New York residents between 2013 and 2015 by causing them to invest in D’Legato through false and fraudulent misrepresentations, according to court documents.
Shockley persuaded one of the victims to use part of her retirement savings to make payments on unauthorized credit card transactions, falsely telling the victim the payments would be credited as investments in D’Legato.
The combined loss to victims in the D’Legato fraud scheme was approximately $563,000, according to court documents.
Shockley also induced victims to provide him with credit card information, which he used to make more than $308,000 in unauthorized purchases on at least 17 different credit cards, according to court documents.
In 2015, Shockley and others defrauded two other people by enticing them to invest in We Love Snobs, which purported to be an online luxury consignment store. Shockley routinely misled investors and told them investments would result in high returns, when in fact he used the money to pay personal expenses, unreasonably high salaries and luxury shopping sprees. The combined losses of the We Love Snobs scheme is $280,000, according to court documents.
Shockley also removed his ankle monitor and fled Ohio while out on bond after pleading guilty, according to court documents.
This case was prosecuted by Assistant U.S. Attorney Paul M. Flannery following an investigation by the FBI, with assistance from the US Postal Inspection Service.
Guatamalan man charged with citizenship violationRead the Press Release
A one-count information was filed charging Alonso Ramos Ciprian, 20, of Guatamala, with false claim to U.S. citizenship, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The information charges that from on or about November 16, 2015, through on or about November 16, 2016, Ciprian, a citizen of Guatemala and therefore an alien in the United States, falsely and willfully represented himself to be a citizen of the United States.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the information was conducted by the Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations and the Salem Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man indicted on child pornography chargesRead the Press Release
Brian C. Keeling, 34, of Cleveland, charged with advertising, receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said U.S. Attorney Carole S. Rendon.
Keeling knowingly made and caused to be made a notice and advertisement seeking and offering to receive, exchange, display and distribute any visual depiction of a real minor engaged in sexually explicit conduct, and such notice and advertisement were transported using any means and facility of interstate and foreign commerce and in and affecting interstate and foreign commerce by any means including by computer. Keeling also knowingly received and distributed, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce, according to the indictment.
The indictment also charges that on or about December 6, 2016, Keeling possessed a ZTE cellular phone and a Samsung Galaxy Tablet, each of which contained child pornography.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Cleveland office of the Department of Homeland Security, Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Canton woman indicted for stealing $100,000 from Tennessee man through bogus sweepstakes schemeRead the Press Release
A Canton woman was indicted on charges that she defrauded a Tennessee man out of more than $100,000 after falsely telling him he won a $3 million sweepstakes but had to pay taxes and fees up front, U.S. Attorney Carole S. Rendon said.
Lashell Patton, 42, was indicted on one count of conspiracy to commit wire fraud.
Patton and others falsely told a Tennessee man that he won $3 million in a sweepstakes. They convinced the victim that he needed to pay taxes and fees associated with the sweepstakes up front, and instructed the victim to wire money to Patton in Canton, according to the indictment.
The victim sent 15 Western Union money wires to Patton totaling $11,615 and 111 MoneyGram money wires to Patton totaling $90,090. This took place between July 2015 and April 2016, according to the indictment.
“This defendant preyed upon a vulnerable victim and took advantage of his trust,” Rendon said. “She now will be held accountable for her actions.”
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the Internal Revenue Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Brunswick man indicted for having child pornographyRead the Press Release
Scott M. Wroten, 53, of Brunswick, was charged with receiving and possessing visual depictions of minors engaged in sexually explicit conduct, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about May 20, 2011 through on or about August 29, 2016, Wroten knowingly received numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on or about April 19, 2016, Wroten possessed a Lenovo computer which contained child pornography. The indictment also charges that on or about August 29, 2016, Wroten possessed a Dell computer, seven USB storage devices and nine external hard drives, each of which contained child pornography.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Cleveland office of the Department of Homeland Security, Homeland Security Investigations, the Ohio Internet Crimes Against Children Task Force, the Wickliffe Police Department and the Brunswick Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Amherst man indicted for November bank robberyRead the Press Release
A federal grand jury indicted Adam Carson, 34, of Amherst, on bank robbery charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on or about November 21, 2016, Carson, by force, violence, and intimidation, took approximately $5,590 from the person and presence of a teller at Chemical Bank, 1977 Cooper Foster Park Road in Amherst.
The Amherst Police Department and the Federal Bureau of Investigation conducted the investigation. The case is being prosecuted by Assistant U.S. Attorney Ranya Elzein.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three from Marion charged with theft of government propertyRead the Press Release
Three people from Marion were charged in federal court with stealing nearly $63,000 worth of government property, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.
Charged in the criminal information were Carol Brown, 58; Lisa Brown, 46, and Donald Brown, 61. They were each charged with one count of theft of government property.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the U.S. Railroad Retirement Board – Office of Inspector General, in Philadelphia. case is being handled by Assistant United States Attorney Tracey Ballard Tangeman.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Boardman man charged with defrauding investors out of $1.2 millionRead the Press Release
A Boardman man was charged in federal court with defrauding investors out of nearly $1.2 million and related tax violations, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the FBI and Troy Stemen, Acting Special Agent in Charge of the IRS’s Cincinnati Field Office.
George N. Krinos was charged in a two-count criminal information with engaging in a securities fraud scheme and willfully failing to collect and pay taxes for his employees.
The information alleges that Krinos, through his various companies known as Krinos Holdings, engaged in a securities fraud scheme in which he sold through false and deceptive practices securities to numerous victims in the Northern District of Ohio. These securities consisted of debenture notes and private placement memoranda that were not properly registered with the Securities and Exchange Commission. Because the securities were not registered with and therefore subject to greater scrutiny by the SEC, Krinos was limited to selling them to “accredited investors” who were generally individuals having a net worth in excess of $1 million or who met specific, high-dollar income thresholds.
The information alleges that from 2011 through 2014, Krinos sold these unregistered securities to at least 10 investors in Ohio, causing them financial losses. Krinos sold the securities under the pretense that his investors’ funds would be used for legitimate business purposes, including to provide venture capital to various client companies seeking funding from Krinos Holdings. Rather than use these funds for their intended uses, Krinos instead used the money for personal expenses and to engage in unauthorized foreign currency transactions. To entice his victims, Krinos made promises that their initial investments of $.10 per share would rise in value to as much as $5 or $6 per share. Krinos also falsely told investors and others that he managed approximately $600 million in an investment account when he in fact had only $5 in the account.
The information further alleges that Krinos submitted falsified letters and statements to reflect high balances in his accounts. Krinos also falsely told investors that they were making high returns on their investments and that his relationships with the client companies was on good terms. Contrary to his representations to his investors, Krinos actually used their funds on for his own personal use at restaurants, bars, casinos, adult entertainment clubs and hotels. Rather than disclose these personal expenses, Krinos later characterized them as “sales and marketing” costs in a budget given to his shareholders at a meeting in Boardman, in 2013.
Over the course of his securities fraud scheme, Krinos caused more than ten victims to lose nearly $1.2 million.
The information also alleges that, in addition to the securities fraud scheme, Krinos improperly withheld taxes, including federal income taxes and Federal Insurance Contribution Act taxes from his employees without paying over those taxes to the IRS. Over the course of approximately two years, Krinos improperly withheld and kept approximately $91,495 of his employees’ tax contributions from the IRS.
“This defendant lied to investors as means to funding a lavish lifestyle for himself,” Rendon said.
“Krinos’ victims extend not only include those who entrusted their financial assets to Mr. Krinos, but his employees and the taxpayers whose payroll taxes were squandered to further his personal gain,” Stemen said. “IRS-Criminal Investigation will continue devote our investigative resources to ensure honesty and integrity in the financial and tax systems and hold those accountable who threaten them.”
If convicted, the defendant’s sentence will be determined by the court after review of the factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not excess the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Om Kakani and Robert J. Patton, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant guilty beyond a reasonable doubt.
North Royalton woman charged with stealing $2 million from Catholic CharitiesRead the Press Release
A North Royalton woman was charged in federal court for embezzling approximately $2 million from Catholic Charities of the Diocese of Cleveland, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Michelle Medrick, 58, was charged via criminal information with bank fraud.
The information alleges that Medrick embezzled approximately $2 million from Catholic Charities in a scheme to defraud Fifth Third Bank and to obtain money under the custody and control of Fifth Third Bank by means of false and fraudulent pretenses and representations from in or around 2008 to March 2016.
At various times, Medrick was employed as the Comptroller and the Business Manager of Catholic Charities. The information alleges that as part of the scheme, Medrick converted proceeds of client-agency and donor checks to cash, which she used for her own benefit.
The information further alleges that Medrick altered copies of the checks, which she then placed into Catholic Charities’ records.
“The Diocese uncovered the fraud and came forward to federal authorities,” Rendon said. “They are cooperating fully. The defendant will now be held accountable for her criminal activity.”
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland woman sentenced to prison for taking Social Security benefits while her son was in county custodyRead the Press Release
A Cleveland woman was sentenced to six months incarceration for fraudulently receiving more than $35,000 in Social Security benefits, U.S. Attorney Carole S. Rendon said.
Andrea J. Smiley, 35, was previously found guilty of theft of government property. She was representative payee for her minor son who was receiving Social Security disability benefits. Smiley’s son was in the custody of the Cuyahoga County Department of Child and Family Services as of March 2011. She failed to notify the Social Security Administration that her son was no longer in her custody, according to court documents.
Smiley submitted four false annual reports that her son was living with her and that the benefits were used for his care. From April 2011 through May 2015 the defendant fraudulently received and converted to her own use $35,279 in SSA benefits, according to court documents.
Smiley was ordered to repay that amount to the Social Security Administration.
This case was prosecuted by Special Assistant U.S Attorney Lisa J. Sanniti following an investigation by the Social Security’s Office of the Inspector General.
U.S. Attorney's Office collected $62.3 million in fiscal year 2016Read the Press Release
U.S. Attorney Carole S. Rendon announced that the Northern District of Ohio collected more than $62.3 million in fiscal year 2016 from criminal and civil actions.
Approximately $55.2 million was collected in criminal actions and about $7.1 million in civil actions.
The office’s total overall budget for this fiscal year was approximately $14 million.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Loretta Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“In addition to locking up violent criminals, strengthening our region’s cyber defense, pushing back on Ohio’s opioid epidemic and other myriad responsibilities, the men and women of the U.S. Attorney’s Office have brought in more than four times our annual budget,” Rendon said. “For more than a decade our office has collected more than we cost the taxpayers.”
The money is used to compensate crime victims, is distributed to state and local law enforcement partners who participate in investigations and is returned to the general treasury.
Among the significant collections this year:
U.S. v. Harold Persaud: Dr. Persaud was convicted in 2015 of one count of health care fraud, 13 counts of making false statements and one count of engaging in monetary transactions in property derived from criminal activity. He was ordered to pay $5.4 million in restitution to the Medicare program and private insurers. Persaud has paid all of this money to the court pending the outcome of his appeal.
U.S. v. Peter Luchansky: Peter Luchansky was convicted in 2015 of defrauding a North Canton company of nearly $2.5 million. The USAO has collected $2.4 million of the total debt which has been returned to the victim company.
U.S. v. John Michael Lonergan: Dr. Lonergan was convicted in 2004 of health care fraud and ordered to pay $339,000 in restitution. Lonergan left Ohio after losing his medical license and had paid very little on his debt after his conviction. Thanks to enforced collection efforts by the U.S. Attorney’s Office, Lonergan appeared in U.S. District Court and paid $306,842 via a cashier’s check to resolve in full his long-outstanding restitution obligation.
U.S. v. Stephen Varkony: Stephen Varkony was convicted of a conspiracy to commit mail and wire fraud and ordered to pay $344,551 to the Ohio Department of Taxation. The U.S. Attorney’s Office has collected $186,000 of this restitution obligation.
The Justice Department collected approximately $15.3 billion in civil and criminal actions across the country in the 2016 fiscal year.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
A complete breakdown of collections in the Northern District of Ohio over past decade is as follows:
2015: $40.7 million
2014: $356.7 million
2013: $23.9 million
2012: $79.7 million
2011: $48.6 million
2010: $42 million
2009: $17.7 million
2008: $36.7 million
2007: $63.5 million
2006: $80 million
2005: $51.4 million
2004: $22.3 million
Ohio Insurance Salesman Convicted of Failure to File Income Tax Returns and Failure to Pay TaxesRead the Press Release
An insurance salesman and former resident of Parma, Ohio was convicted today following a five-day jury trial of fifteen counts of willful failure to pay income taxes and five counts of willful failure to file income tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division; U.S. Attorney Carole S. Rendon for the Northern District of Ohio; and Acting Special Agent in Charge Troy N. Stemen for the Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office.
According to the evidence presented at trial, John Christopher Raschella, 57, currently a resident of Estero, Florida, failed to pay more than $1 million in income taxes, interest and penalties that he owed to the IRS for 1995, 1996, and 1998 through 2012. During those years, Raschella sold insurance, and earned additional income working for other insurance salesmen.
Between 1989 and 2012, Raschella failed to timely file income tax returns to report his income to the IRS. For several years, Raschella filed delinquent income tax returns on which he reported that he owed taxes, but failed to make the required payments. For other years, the IRS assessed Raschella’s taxes and sent him letters notifying him of the amount owed, but Raschella still failed to pay. The government’s evidence also demonstrated that between 2010 and 2012, Raschella filed numerous false tax returns on which he, among other falsities, underreported his income and claimed deductions for alimony that he had not paid.
The evidence at trial established that Raschella used a series of nominee entities and individuals to prevent the IRS from collecting his unpaid taxes through liens on his assets and levies on his income or bank accounts. In 2001, Raschella attempted to assign his insurance commissions to American Financial, a company operated by Joseph Flickinger. Flickinger was sentenced to prison after pleading guilty for his role in promoting a tax fraud scheme. Raschella also paid Flickinger to prepare a false tax return for Raschella for the year 2000.
In 2003, Raschella formed two companies, Resource One, Corporation and Legacy Foundation International. Raschella deposited his insurance commissions into bank accounts in the name of these entities. Raschella also purchased, leased and registered vehicles in the names of both Resource One and Legacy Foundation. Raschella incorporated Resource One with the assistance of Carol Sing, who was sentenced to three years in prison in May 2015 after a jury convicted her of promoting a tax fraud scheme. Raschella organized Legacy Foundation with the help of Nancy Lloyd, who was enjoined in December 2005 from promoting abusive tax fraud schemes.
Raschella successfully assigned his insurance commission to Resource One in 2005, which resulted in the insurance company that he sold insurance for issuing a Form 1099-MISC to the company instead of to Raschella individually. The insurance company revoked the assignment after learning that Raschella had made false statements to a county government agency regarding the fact that Resource One was his company. Raschella also hired an individual in Texas who submitted a fraudulent levy release to the insurance company on his behalf. This document was created to appear as if it was issued by the IRS, when, in fact, it was sent by the individual in Texas. The fraudulent document resulted in the insurance company substantially reducing the amount of Raschella’s insurance commissions that it was paying over to the IRS in response to a levy.
“John Raschella willfully failed to pay more than $1 million in income taxes, interest and penalties,” said Principal Deputy Assistant Attorney General Ciraolo. “The jury’s verdict makes clear that dishonest taxpayers who fail to file returns and pay their fair share of taxes cannot escape responsibility for their illegal conduct.”
“While no one looks forward to paying taxes, it is our obligation as citizens,” said U.S. Attorney Rendon. “The jury found this defendant willingly and fraudulently shirked his responsibility.”
“Convictions, like the one returned against Mr. Raschella today, send a clear message that those who willfully defy the tax laws will be fully investigated, prosecuted, and subjected to the full punishment of the law for their actions,” said Chief Richard Weber of IRS-Criminal Investigation. “The overarching principle of IRS’s enforcement strategy is to protect the integrity of the tax system by ensuring everyone pays the right amount of tax. The IRS and Department of Justice remain determined and vigilant in ferreting out such schemes to cheat the honest taxpayers.”
Raschella is the fourth insurance salesman to be convicted of tax crimes in the Northern District of Ohio in recent years. In October 2012, William A. Herder was sentenced to 37 months in prison after a jury convicted him of tax evasion, corruptly endeavoring to impair and impede the IRS, and willful failure to file tax returns. Herder’s son, William R. Herder was sentenced to 20 months in prison in January 2013 after pleading guilty to corruptly endeavoring to impair and impede the IRS and structuring currency transactions. William A. Herder’s brother-in-law, Thomas Mitchell, was sentenced to probation in 2012 after pleading guilty to willful failure to file a tax return. All four men utilized similar schemes to evade their responsibilities under the federal tax laws.
U.S. District Judge Dan Aaron Polster set sentencing for April 13, 2017. Raschella faces a statutory maximum sentence of one year in prison for each willful failure to pay and willful failure to file conviction. He also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo, U.S. Attorney Rendon and Acting Special Agent in Charge Stemen thanked agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Jeffrey A. McLellan of the Tax Division, who prosecuted the case. They also thanked Assistant U.S. Attorney Robert J. Patton of the Northern District of Ohio who provided substantial assistance in this prosecution.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Three Romanian nationals indicted in cyber fraud case in which they infected 60,000 computers, sent out 11 million malicious emails and stole at least $4 millionRead the Press Release
A 21-count indictment was unsealed in which three Romanian nationals were charged for operating a cyber fraud conspiracy in which they infected 60,000 computers, sent out 11 million malicious emails and stole at least $4 million, said U.S. Attorney Carole S. Rendon and FBI Special Agent in Charge Stephen D. Anthony.
Bogdan Nicolescu, 34, Tiberiu Danet, 31, and Radu Miclaus, 34, were extradited to the United States this week after being taken into custody in their native Romania earlier this year. They are each charged with conspiracy to commit wire fraud, conspiracy to traffic in counterfeit service marks, aggravated identity theft, conspiracy to commit money laundering and 12 counts each of wire fraud.
“This case illustrates the sophistication and determination with which cyber criminals seek to harm Americans and American businesses from abroad,” said Assistant Attorney General Leslie R. Caldwell. “But our response demonstrates that, with effective international cooperation, we can track these criminals down and make sure they face justice, no matter where or how they try to hide.”
“These defendants stole millions of dollars from people in the United States through a sophisticated fraud conspiracy they operated in Eastern Europe,” Rendon said. “Cybercrime is an ever-growing threat. We will continue to work with both our partners in law enforcement and in the private sector to evolve with the threat and protect our networks and national security.”
“This indictment and subsequent arrests reveal the dynamic landscape in which international criminals utilize sophisticated cyber methods to take advantage of and defraud, unsuspecting victims,” Anthony said. “Despite the complexity and global character of these investigations, these arrests demonstrate the commitment by the FBI and our partners to aggressively pursue these individuals and bring justice to the victims.”
According to the indictment filed in U.S. District Court in the Northern District of Ohio:
Nicolescu, Danet and Miclaus collectively operated a criminal conspiracy from Bucharest, Romania. It began in 2007 with the development of proprietary malware, which they disseminated through malicious emails purporting to be legitimate from such entities as Western Union, Norton AntiVirus and the IRS. When recipients clicked on an attached file, the malware was surreptitiously installed onto their computer.
This malware harvested email addresses from the infected computer, such as from contact lists or email accounts, and then sent malicious emails to these harvested email addresses. The defendants infected and controlled more than 60,000 individual computers, primarily in the United States.
Controlling these computers allowed the defendants to harvest personal information, such as credit card information, user names and passwords. They disabled victims’ malware protection and blocked the victims’ access to websites associated with law enforcement.
Controlling the computers also allowed the defendants group to use the processing power of the computer to solve complex algorithms for the financial benefit of the group, a process known as cryptocurrency mining.
The defendants used stolen email credentials to copy a victim’s email contacts. They also activated files that forced infected computers to register email accounts with AOL. The defendants registered more than 100,000 email accounts using this method. They then sent malicious emails from these addresses to the compromised contact lists. Through this method, they sent more than 11 million malicious emails.
When victims with infected computers visited websites such as Facebook, PayPal, eBay or others, the defendants would intercept the request and redirect the computer to a nearly identical website they had created. The defendants would then steal account credentials. They used the stolen credit card information to fund their criminal infrastructure, including renting server space, registering domain names using fictitious identities and paying for Virtual Private Networks (VPNs) which further concealed their identities.
The defendants were also able to inject fake pages into legitimate websites, such as eBay, to make victims believe they were receiving and following instructions from legitimate websites, when they were actually following the instructions of the defendants.
They placed more than 1,000 fraudulent listings for automobiles, motorcycles and other high-priced goods on eBay and similar auction sites. Photos of the items were infected with malware, which redirected computers that clicked on the image to fictitious webpages designed by the defendants to resemble legitimate eBay pages.
These fictitious webpages prompted users to pay for their goods through a nonexistent “eBay Escrow Agent” who was simply a person hired by the defendants. Users paid for the goods to the fraudulent escrow agents, who in turn wired the money to others in Eastern Europe, who in turn gave it to the defendants. The payors/victims never received the items and never got their money back.
This resulted in a loss of at least $4 million.
The Bayrob group laundered this money by hiring “money transfer agents” and created fictitious companies with fraudulent websites designed to give the impression they were actual businesses engaged in legitimate financial transactions. Money stolen from victims was wired to these fraudulent companies and then in turn wired to Western Union or Money Gram offices in Romania. European “money mules” used fake identity documents to collect the money and deliver it to the defendants, according to the indictment
This case is being prosecuted by Assistant U.S. Attorneys Duncan T. Brown and Om Kakani and Brian Levine, Senior Counsel with the Justice Department’s Computer Crime and Intellectual Property Section. The case was investigated by the FBI, with assistance from the Romanian National Police.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Romanian Nationals Indicted in $4 Million Cyber Fraud Scheme that Infected at Least 60,000 Computers and Sent 11 Million Malicious EmailsRead the Press Release
A 21-count indictment was unsealed today charging three Romanian nationals for operating a cyber fraud conspiracy in which they infected between 60,000 and 160,000 computers, sent out 11 million malicious emails and stole at least $4 million.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division made the announcement.
Bogdan Nicolescu, 34, Tiberiu Danet, 31, and Radu Miclaus, 34, were extradited to the United States this week after being taken into custody in their native Romania earlier this year. They were each charged with 12 counts of wire fraud, as well as one count each of conspiracy to commit wire fraud, conspiracy to traffic in counterfeit service marks, aggravated identity theft, conspiracy to commit money laundering and conspiracy to violate the Computer Fraud and Abuse Act.
“This case illustrates the sophistication and determination with which cyber criminals seek to harm Americans and American businesses from abroad,” said Assistant Attorney General Caldwell. “But our response demonstrates that, with effective international cooperation, we can track these criminals down and make sure they face justice, no matter where or how they try to hide.”
“These defendants stole millions of dollars from people in the United States through a sophisticated fraud conspiracy they operated in Eastern Europe,” said U.S. Attorney Rendon. “Cybercrime is an ever-growing threat. We will continue to work with both our partners in law enforcement and in the private sector to evolve with the threat and protect our networks and national security.”
“This indictment and subsequent arrests reveal the dynamic landscape in which international criminals utilize sophisticated cyber methods to take advantage of and defraud unsuspecting victims,” said Special Agent in Charge Anthony. “Despite the complexity and global character of these investigations, these arrests demonstrate the commitment by the FBI and our partners to aggressively pursue these individuals and bring justice to the victims.”
According to the indictment, Nicolescu, Danet and Miclaus collectively operated a criminal conspiracy from Bucharest, Romania, which began at least as early 2007 with the development of proprietary malware used to infect and control more than 60,000 computers, primarily in the United States. The co-conspirators allegedly used the computers to harvest personally identifiable information, such as credit card information, user names and passwords; disable malware protection; and solve complex algorithms to accrue valuable cryptocurrency for the financial benefit of the group, a process known as cryptocurrency mining.
To spread their malware, the defendants allegedly activated files that forced infected computers to register a total of over 100,000 email accounts with public email providers, according to the indictment. The co-conspirators sent a total of more than 11 million emails containing the malware from these accounts to email contacts copied from victim computers. When victims with infected computers visited websites such as Facebook, PayPal or eBay, the co-conspirators would redirect the computers to a nearly identical website they had created to steal account credentials. The defendants then used stolen credit card information to fund their criminal infrastructure while concealing their identities.
In addition, the indictment alleges that the defendants placed more than 1,000 fraudulent listings for automobiles, motorcycles and other high-priced goods on eBay and similar auction websites. Photos of the items were allegedly infected with malware, which, when clicked, redirected victims to fictitious webpages designed by the co-conspirators to resemble legitimate eBay pages. The fictitious webpages prompted users to pay for their goods through a nonexistent “eBay Escrow Agent,” and payments would then be funneled back to the co-conspirators. This scheme allegedly resulted in at least $4 million – though the actual total may be tens of millions more – in losses to victims, which the defendants laundered through wire transfers under the names of fictitious companies and then collected and delivered to the co-conspirators by “money mules.”
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI investigated the case with assistance from the Romanian National Police. Senior Counsel Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Duncan T. Brown and Om Kakani of the Northern District of Ohio are prosecuting the case. The Criminal Division’s Office of International Affairs provided substantial assistance in this matter.
Willoughby man indicted on child pornography chargesRead the Press Release
A Willoughby man was indicted on child pornography charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Conor K. Ransom, 33, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
Ransom knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct, from February 24, 2016 through on or about April 19, 2016, according to the indictment. The indictment also charges that on or about April 19, 2016, Ransom possessed a computer which contained child pornography.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Painesville, Ohio and Plano, Texas, offices of the Federal Bureau of Investigation and the Plano Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Warren man faces child pornopraphy chargesRead the Press Release
A Warren man was indicted on child pornography charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
David Hafely, 19, was charged with receiving, distributing, transporting and possessing visual depictions of minors engaged in sexually explicit conduct.
The indictment charges that from on or about November 22, 2015 through on or about January 4, 2016, Hafely knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct.
The indictment also charges that from on or about November 22, 2015 through on or about January 4, 2016, Hafely knowingly transported numerous visual depictions of real minors engaged in sexually explicit conduct.
The indictment also charges that on or about January 5, 2016, Hafely possessed a Kindle Fire HD Tablet, which contained child pornography.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Cleveland office of the Department of Homeland Security, Homeland Security Investigations and the Ohio Internet Crimes Against Children Task Force.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Pioneer man charged with stealing firearmsRead the Press Release
A Pioneer man was charged with stealing firearms, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
A criminal information was filed charging Kyle Shirey, 34, with theft of a firearm from a firearms dealer and receipt and possession of a firearm not registered through the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Toledo, Ohio. The case is being handled by Assistant United States Attorney Tracey Ballard Tangeman.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mexican national living in Canton indicted on drug trafficking and immigration chargesRead the Press Release
A Mexican national living in Canton was indicted on cocaine trafficking and immigration charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
A federal grand jury returned a five-count indictment charging Rodolfo Trejo, aka Rudy, 38, with distribution of cocaine, possession with intent to distribute cocaine, and illegal re-entry following deportation.
Counts 1 through 3 of the indictment allege that Trejo distributed cocaine on or about August 17, September 7 and September 22, 2016.
Count 4 of the indictment alleges that Trejo possessed with the intent to distribute cocaine on or about December 1, 2016.
Count 5 of the indictment alleges that Trejo, a citizen of Mexico and an alien, who after previously having been removed and deported from the United States in 2013, to Mexico, was found illegally back in the United States.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Department of Homeland Security, Immigration and Customs Enforcement and the Canton Police Department. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Kent man indicted for having shotgun after domestic violence convictionRead the Press Release
A Kent man convicted of domestic violence was charged with illegally having a firearm, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
A federal grand jury returned a one-count indictment charging Cecil J. Rotnem, 29, with possession of a firearm by a person convicted of misdemeanor domestic violence.
The indictment alleges Rotnem possessed a Mossberg, model 500A, 12 gauge shotgun on or about July 5, 2016 through July 11, 2016, despite having been previously convicted of a misdemeanor crime of domestic violence, in the Portage County Municipal Court, in 2009.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Geneva man faces child pornography chargesRead the Press Release
A Geneva man was indicted on child pornography charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Christopher W. Smith, 27, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
The indictment charges that Smith knowingly received and distributed numerous computer files which containted visual depictions of real minors engaged in sexually explicit conduct. This took place from June 17 through November 15, 2016. The indictment also charges that on or about November 15, 2016, Smith possessed an HTC cellphone and an RCA Tablet, each of which contained child pornography.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation the Cleveland and London offices of the Department of Homeland Security, Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Toledo man sentenced to 30 years in prison for having a kilogram of heroin and a firearmRead the Press Release
A Toledo man was sentenced to 30 years in prison for his involvement in conspiracy to possess with intent to distribute a kilogram of heroin, said U.S. Attorney Carole S. Rendon.
Lee T. Turner, 31, was found guilty earlier this year of one count of conspiracy to possess with intent to distribute at least one kilogram of heroin and one count of being a felon in possession of a firearm.
U.S. District Judge James Carr also fined Turner $200,000 and ordered him to forfeit a house, firearms, cash, jewelry and other items.
“We will continue to aggressively go after those who bring heroin into our community and who are forbidden from carrying firearms but do so anyway,” Rendon said. “Our state is in the midst of an opioid epidemic and we all must work together – through prevention, treatment, education and yes, enforcement, to turn the tide.”
Turner conspired to with others from November 2013 through Nov. 20, 2014 to possess heroin. Turner used 2830 Powhattan Parkway and 707 Phillips Avenue, both in Toledo, for the unlawful purpose of storing and distributing heroin, according court documents.
On Nov. 20, 2014, Turner possessed approximately 1,077 grams of heroin and a 9 mm pistol, despite previous convictions for bank robbery, robbery, kidnapping and other felony convictions, according to court documents.
The case was being prosecuted by Assistant U.S. Attorneys Alyssa Sterling and James Morford following an investigation by the Toledo Metro Drug Task Force, which is made up of representatives from the Toledo Police Department, Federal Bureau of Investigation, Lucas County Sheriff’s Office and other law enforcement agencies.
Two from New York City indicted for having a kilogram of fentanylRead the Press Release
Two New York City men were indicted for having a kilogram of fentanyl, said U.S. Attorney Carole S. Rendon and DEA Special Agent in Charge Timothy J. Plancon.
Hector Lebron, 43, and Alberto Marcial-Santos, 35, were each indicted on one count of possession with the intent to distribute a kilogram of fentanyl.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Drug Enforcement Administration, with assistance from the Ohio State Highway Patrol. The case is being handled by Assistant United States Attorney Michael J. Freeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.