Northern District of Ohio
Press releases recorded for this federal judicial district.
Toledo man indicted for having 11 pounds of cocaineRead the Press Release
A Toledo man was indicted for having more than 11 pounds of cocaine, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Leroy L. Hooker, 47, was indicted on one count of possession with intent to distribute more than five kilograms of cocaine.
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 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.
Three sentenced to prison for $3 million fraud involving Cleveland home health companyRead the Press Release
Three people were sentenced to prison for their roles in a $3 million conspiracy involving a home health service company with offices in Cleveland to defraud government insurance programs by billing for services not provided, law enforcement officials said.
George Epps, 43, of Cleveland, was sentenced to 46 months in prison.
Abdulazis Warsame, 51, of Cleveland, was sentenced to 37 months in prison.
Amir Ahmed, 51, of Columbus, was sentenced to 27 months in prison.
All three worked for Lifeline Home Health Services, which was incorporated in 2006 and had an office at 12200 Fairhill Road in Cleveland.
The defendants and others conspired between 2009 to 2013 to defraud Medicaid by submitting false documentation to become an accredited home healthcare provider, forging documents to make it appear doctors had approved specific plans of care, fabricating and billing for home health visits that had not taken place. Ahmed also recruited patients by offering cash kickbacks in exchange for becoming patients of Lifeline, according to court documents.
Collectively, they received payment for more than $3 million in fraudulent claims, according to court documents.
“These defendants stole millions of dollars from the public,” U.S. Attorney Carole S. Rendon said. “They have earned their time in prison. We will continue to work collaboratively to protect taxpayers and programs receiving federal dollars.”
“The sentencing of these defendants should send a message to illegitimate providers of home health services that the OIG and our law enforcement partners are actively engaged in identifying, exposing, and holding accountable those who choose to attack the Medicaid and Medicare programs,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to dedicate resources to combat fraud in the area of home health services to protect those patients who truly need these services, and to preserve vital taxpayer dollars.”
“These defendants orchestrated a multi-million dollar conspiracy to defraud Ohio Medicaid and live off of taxpayer dollars that they were never entitled to receive,” said Attorney General Mike DeWine. “Their conduct was egregious, and it is something that authorities with my office are trained to identify, investigate, and prosecute. I’m pleased that prison time and restitution was ordered in this case because this behavior will not be tolerated in Ohio.”
This case was prosecuted by Assistant U.S. Attorney Michael L. Collyer following an investigation by the Department of Health and Human Service’s Office of Inspector General, the FBI and the Ohio Attorney General’s Medicaid Fraud Control Unit.
Longtime fugitive sentenced to more than four years in prison for $3 million food stamp fraudRead the Press Release
A longtime fugitive was sentenced to more than four years in prison for stealing $3.2 million through food stamp fraud more than two decades ago, U.S. Attorney Carole S. Rendon said.
Najeh Ottallah, 54, formerly of Lakewood, was sentenced to 54 months in prison. U.S. District Court Judge Donald Nugent also ordered Ottallah to pay $3.2 million in restitution to the Department of Agriculture, which administers the food stamp program, and $35,576 to the Internal Revenue Service.
Ottallah pleaded guilty in 1994 to food stamp fraud and tax charges. He did not appear for his sentencing and was a fugitive until this year, when he was arrested in Jerusalem.
"This defendant ripped off taxpayers by abusing a program designed to help our most destitute," Rendon said. "He fled the country for more than two decades and the sentence he receivfed today reflects those actions."
"More than 20 years passed since Mr. Ottallah pleaded guilty for his role in what was, at the time, one of the first investigations of a massive food stamp fraud scheme in Northern Ohio," said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "Today's sentence is a direct result of the collaborative efforts of the IRS, U.S. Department of Agriculture, Office of Inspector General, U.S. Department of Homeland Security, Immigration and Customs Enforcement, and the U.S. Attorney's Office has in combating violations of federal law."
This case was prosecuted by Assistant U.S. Attorney Karrie D. Howard following an investigation by the IRS and U.S. Department of Agriculture, with assistance from the U.S. Marshal Service.
Jury convicts Warrensville Heights man of straw purchase of firearmRead the Press Release
A Warrensville Heights man was convicted of engaging in the straw purchase of a firearm, said Carole Rendon, U.S. Attorney for the Northern District of Ohio.
Malcolm Roberson, 26, was found guilty by a jury of engaging in a straw purchase of a Jimenez Arms 9 mm pistol on Feb. 20 at Taylor Firearms LLC in Vermillion when Chimere Turner said she was the buyer of the firearms when Roberson was the actual buyer of the firearm. The jury also convicted Roberson of being a felon in possession of a firearm, for having the 9 mm pistol despite a 2011 conviction for assault.
Turner, 32, of Cleveland, previously pleaded guilty to making a false statement during the purchase of a firearm.
This case is being prosecuted by Assistant U.S. Attorney Benedict Gullo following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Quaker City man accused of obstructing justice and threatening agentsRead the Press Release
A federal grand jury indicted Jesse M. Smith, 38, of Quaker City, Ohio, today for obstructing the proceedings of a federal grand jury and threatening two federal agents, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The indictment alleges in the first count that Smith obstructed the proceedings of a federal grand jury in Cleveland, Ohio, by producing false and misleading documents in response to a subpoena. The second count of the indictment alleges that Smith threatened to harm a special agent of the United States Department of Agriculture on September 19, 2016. The last count of the indictment alleges that Smith threatened to shoot a different special agent of the USDA four days later on September 23, 2016.
The USDA Office of Inspector General conducted the investigation along with the FBI. The case is being prosecuted by Assistant United States Attorneys Duncan T. Brown and Brad J. Beeson.
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. 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.
Mexican national indicted for illegal reentry, failure to register as sex offenderRead the Press Release
A federal Grand Jury returned an indictment charging Raymond Castaneda, 43, a Mexican citizen, with unlawfully re-entering the United States and failing to register as a sex offender, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Castaneda, who in 1994 was convicted of Indecency with a Child in Henderson County, Texas and deported to Mexico in 2008, was found in Painesville, according to the indictment.
Assistant United States Attorney Karrie D. Howard is prosecuting the case following an investigation by the U.S. Marshals Service.
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.
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 man faces child pornography chargesRead the Press Release
Matthew Ungashick, 39, of Canton, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, 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.
The indictment charges that on or about July 25, 2016, Ungashick knowingly received and distributed numerous computer files which 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. The indictment also charges that on or about November 3, 2016, Ungashick possessed a two external computer hard drives and numerous computer disks, 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.
The case was investigated by the Canton office of the Federal Bureau of Investigation and the Canton 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.
Youngstown man faces federal firearms and drug chargesRead the Press Release
A federal grand jury returned a four-count indictment charging Rashad Mathews, 28, of Youngstown, with drug trafficking and firearms violations, U.S Attorney Carole S. Rendon said.
Mathews possessed a Ruger, model 10/22, .22 caliber rifle and ammunition on April 15, 2015. On Dec. 1, 2015, Mathews possessed a Norinco, model 213, 9mm pistol; a Kahr Arms, model CW9, 9mm pistol; a Raven Arms, model MP-25, .25 caliber pistol; and a Raven Arms, model P-25, .25 caliber pistol. He had these firearms despite a 2007 felony conviction in Mahoning County Common Pleas Court in 2007, according to the indictment.
Mathews distributed marijuana on June 4, 201 and on December 1, 2015, he possessed with the intent to distribute marijuana, 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. The matter is being prosecuted by Assistant United States 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.
East Liverpool man sentenced to six years in prison for child pornographyRead the Press Release
An East Liverpool man was sentenced to six years in prison for child pornography violations, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.
Donald Guthrie, Jr., 56, of East Liverpool, was found guilty earlier this year of receipt and distribution of visual depictions of real minors engaged in sexually explicit conduct.
Guthrie received numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between June and August 2014, according to court documents.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Department of Homeland Security, Cleveland Office.
Two indicted for defrauding investors out of nearly $600,000Read the Press Release
Two people were indicted by a federal grand jury for their roles in a nearly $600,000 financial fraud, 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
Andrea M. Trgovcich, 50, of Youngstown, and Bertrand J. Gray, aka Bert Gray, 52, of Cleveland, were indicted on charges of securities fraud and bank fraud.
Trgovcich is charged with inducing the investment of $578,859 in a business venture known as Wellness Integrated Network LLC (WIN). WIN was intended to develop and market a software application that would integrate diet, fitness, exercise routines, health monitoring, etc., to business employee wellness plans and insurance companies, according to the indictment.
Investors were promised that their money would be used to develop and market the software product. Trgovcich is alleged to have diverted much of the money to personal use. No software application was ever developed or marketed. Gray joined WIN as chief financial officer in 2012, and is alleged to have raised investor funds through the use of false documents and statements, according to the indictment.
Trgovcich is also charged with six counts of bank fraud for withdrawing investor funds from federally-insured banks under false pretenses, according to the indictment.
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 Youngstown Resident Agency of the Federal Bureau of Investigation. The case was presented by Assistant U.S. Attorneys James V. Moroney and Carmen Henderson.
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.
Three Mahoning County men face firearms chargesRead the Press Release
Three Mahoning County men face federal firearms charges, U.S Attorney Carole S. Rendon said.
Indicted are: James M. Simmons, 32, of Youngstown, Ricky Paige, 30, of Boardman, and Michael Williams, 32, of Youngstown. Their cases are not related.
Simmons possessed a Ruger, model P95, 9mm pistol, on Feb. 3, 2016, after having been previously convicted of burglary, possession of cocaine, and failure to comply with order or signal of police officer, all in the Mahoning County Court of Common Pleas, according to the indictment
Paige possessed a Norinco, model SKS, 7.62mm rifle on Dec. 15, 2015 and a Ruger, model P95, 9mm pistol on March 24, 2016, despite previous convictions for robbery, aggravated robbery and burglary in Mahoning County Court of Common Pleas, according to the indictment.
Williams is charged possessing with the intent to distribute narcotics and being a felon in possession of a firearm.
Williams possessed with the intent to distribute cocaine, crack cocaine, heroin, tramadol, alprazolam and clonazepam on or about July 1, 2016, according to the indictment.
He also possessed a Norinco, model MAK 90 Sporter, 7.62mm rifle, on July 7, 2016, despite previous convictions for aggravated assault and cocaine trafficking in the Summit County Court of Common Pleas, according to the indictment.
All three cases are being prosecuted by Assistant U.S. Attorney David M. Toepfer following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mahoning Valley Law Enforcement Task Force.
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.
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.
Summit County man indicted for firearms, nearly 80 pounds of cocaineRead the Press Release
A five-count indictment was filed in federal court charging a Summit County man for illegally possessing firearms and nearly 80 pounds of cocaine, law enforcement officials said
Jerry J. Davis, Jr., 35, of New Franklin, was indicted on two counts of possession with the intent to distribute cocaine, two counts of possession of a firearm in furtherance of a drug trafficking offense and one count of being felon in possession of a firearm.
Ohio State Highway Patrol troopers and officers from Akron Police Department executed a traffic stop of Davis in Akron on Nov. 1. Davis initially stopped but then drove away, leading the officers on a high-speed chase. Davis crashed his car into a light pole and then ran from officers. He was arrested after he jumped from a bridge, falling 30 feet to the ground, according to court documents.
Officers recovered nearly 11 kilograms of cocaine and a loaded Glock .40-caliber handgun from Davis’s vehicle, according to court documents.
Later that day, investigators from the Summit County Drug Unit, Akron Police Department, DEA and FBI executed a search warrant on Davis, Jr.’s house in New Franklin. They recovered approximately 25 kilograms of cocaine, a Glock .40 model 30 handgun, a Springfield .45-caliber handgun, ammunition and approximately $67,658 in cash, according to court documents.
Davis is forbidden by law from having a firearm because of numerous felony convictions, including for sexual battery, heroin possession and other crimes, according to court documents.
“This investigation is a great example of law enforcement working together to get drugs and guns off the streets,” said U.S. Attorney Carole S. Rendon.
“Our working relationships with our state, local and federal partners continue to benefit the City of Akron in successes such as this,” said Akron Police Chief James Nice.
“The seizure of 36 kilograms is significant and is an indication that cocaine abuse continues to plague society,” said Timothy Plancon, Special Agent in Charge of DEA’s Detroit Office, which oversees Ohio. “Halting the activities of a large-scale, gun-toting, cocaine trafficker is a victory for the citizens of Akron and the surrounding communities, and was achieved thanks to the significant communication and cooperation of all of the local, state and federal law enforcement agencies involved.”
This investigation was conducted by the Akron Police Department Narcotics Unit and the DEA, along with the Ohio State Highway Patrol and the FBI. The case is being prosecuted by Assistant U.S. 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 government’s burden to prove each defendant’s guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense and the characteristics of the violations.
Cleveland Police Crisis Intervention Team policies released for public commentRead the Press Release
Today, new Crisis Intervention Team (CIT) policies developed by the Cleveland Division of Police in cooperation with the Consent Decree Monitoring Team, the Department of Justice, the Mental Health Response Advisory Committee which work with the Alcohol, Drug Addiction and Mental Health Services (ADAMHS) Board of Cuyahoga County and the United States Attorney’s Office were released for public comment and feedback. Mayor Frank G. Jackson and Chief of Police Calvin D. Williams welcome and encourage the public to participate in this feedback process prior to submitting the policies to Judge Oliver Solomon for filing.
“The Crisis Intervention Team Policies are a major component for the City in implementing the Consent Decree,” said Mayor Frank G. Jackson. “These new policies will continue to create the conditions that foster positive interactions between our police and the communities they serve.”
“These policies are the result of collaborative efforts and reflect national best practices,” said U.S. Attorney Carole S. Rendon. “They will ensure that our most vulnerable citizens get the help they need. We welcome the public’s input as we continue our ongoing reform efforts.”
“The Cleveland Division of Police and the community led Mental Health Response Advisory Committee have produced a crisis intervention policy that will serve as a model for other cities,” said Monitoring Team member and crisis intervention expert Dr. Randolph Dupont. “Cleveland has a right to be proud of this work.”
“The Cleveland Division of Police is committed to ensuring that the policies set in place for our officers reflect best practice along with safe tactics.” said Chief Calvin D. Williams. “The revision of the Crisis Intervention Team order is yet another step toward making sure that we are providing optimum service to the citizens we are proud to serve each day.”
“These Crisis Intervention Team policies solidify our community’s goal of making Cleveland a city where everyone – including people living with mental illness and addiction - is treated safely with dignity and respect,” stated William M. Denihan, CEO of the ADAMHS Board of Cuyahoga County.
“Today, another milestone in the Consent Decree compliance process has been reached,” said Consent Decree Implementation Coordinator, Gregory A. White. “This was another outstanding collaborative effort between the Cleveland Division of Police, the Mental Health Response Advisory Committee, the monitoring team, the Department of Justice and the United States Attorney’s Office. Special recognition should also go to the Policy Sub-Committee of the Mental Health Response Advisory Committee, chaired by Common Pleas Judge Hollie L. Gallagher and Gabriella Celeste, Director of Child Policy at Case Western Reserve University Center for Child Studies. Final public comment is now welcome prior to the policies being filed for approval under the Consent Decree.”
A public meeting to discuss the proposed policies will be held on December 13, 2016 at two locations and at separate times.
- The first public meeting is December 13th, 1:00 p.m. at the Murtis Taylor Human Services System, 13422 Kinsman Road, Cleveland, Ohio 44120
- The second public meeting is December 13th, 6:00 p.m. at the Urban Community School, 4909 Lorain Avenue, Cleveland, Ohio 44102
View the proposed policies and provide feedback here: http://www.clevelandpolicemonitor.net/crisis-intervention
Akron man charged with sexually exploiting 14-year-oldRead the Press Release
An Akron man was indicted in federal court for sexually exploiting a 14-year-old, 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.
Benny T. Hunt, 40, was charged with enticement, sexual exploitation of a child and distributing visual depictions of a minor engaged in sexually explicit conduct.
Hunt knowingly used a cellular phone with Internet connectivity to persuade, induce, entice, and coerce a 14-year-old girl, to engage in sexual activity for which Hunt could be charged with a criminal offense. This took place between June and August, according to the indictment.
Hunt used, persuaded, enticed and coerced a minor to engage in sexually explicit conduct, as defined in Title 18, United States Code, Section 2256(2), for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced using materials that had been mailed, shipped and transported in and affecting interstate and foreign commerce, and such visual depiction was actually transported and transmitted, using any means and facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce, according to the indictment
He also knowingly distributed, using any means and facility of interstate and foreign commerce, visual depictions of a 14-year-old girl engaged in sexually explicit conduct, 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. The case was investigated by the Youngstown office of the Federal Bureau of Investigation, the Ohio Attorney General’s Office Bureau of Criminal Investigation and the Girard 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.
Toledo man pleads guilty to hate crime for beating African-American strangerRead the Press Release
Robert Paschalis, 25, of Toledo, pleaded guilty today to a federal hate crime for beating an African-American stranger he saw on the street. Paschalis’s co-defendant, Charles Butler, pleaded guilty to the same crime on Nov. 9.
The plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights 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.
According to his guilty plea, on May 18, 2016, Paschalis and Butler drove past the victim, A.W., on the street while A.W. was unloading items from his truck. The two men circled back, got out of their own truck and began attacking A.W. while yelling racial slurs. Butler grabbed a broom from the back of A.W.’s truck and struck A.W. with it multiple times. Paschalis admitted during his plea that the beating occurred because A.W. is African American.
The beating stopped only when two off-duty Ohio state police officers happened on the scene and pulled Butler and Paschalis away. A.W. suffered an orbital fracture and damage to his right eye. Butler later posted on Facebook that the attack was “in the name of the White Race.”
“Hate violence harms individuals and threatens the diversity of entire communities,” said Principal Deputy Assistant Attorney General Gupta. “This vicious attack on an African-American man simply going about the routines of daily life offends human decency. We cannot undo the harms inflicted, but these convictions help vindicate everyone’s right to live free from racial violence.”
“Northern Ohio is a mosaic of different races, ethnicities and backgrounds,” said U.S. Attorney Rendon. “This defendant tried to strike at the diversity we cherish by participating in an unprovoked attack based solely on the victim’s race. He is now likely headed to prison, while we will continue to work together to ensure that everyone’s civil rights are protected.”
“These individuals engaged in a violent assault against another person based on his race and are now being held accountable,” said Special Agent in Charge Anthony. “The FBI will continue to work with our law enforcement partners to ensure hate crimes are thoroughly investigated and prosecuted to the greatest extent of the law.”
This case is being investigated by the FBI Cleveland Division’s Toledo Resident Agency, in cooperation with the Toledo Police Department and the Lucas County, Ohio, Prosecutor’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael Freeman of the Northern District of Ohio and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Ohio Man Pleads Guilty to Hate Crime for Beating African-American StrangerRead the Press Release
Robert Paschalis, 25, of Toledo, Ohio, pleaded guilty today to a federal hate crime for beating an African-American stranger he saw on the street. Paschalis’s co-defendant, Charles Butler, pleaded guilty to the same crime on Nov. 9.
The plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights 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.
According to his guilty plea, on May 18, 2016, Paschalis and Butler drove past the victim, A.W., on the street while A.W. was unloading items from his truck. The two men circled back, got out of their own truck and began attacking A.W. while yelling racial slurs. Butler grabbed a broom from the back of A.W.’s truck and struck A.W. with it multiple times. Paschalis admitted during his plea that the beating occurred because A.W. is African American.
The beating stopped only when two off-duty Ohio state police officers happened on the scene and pulled Butler and Paschalis away. A.W. suffered an orbital fracture and damage to his right eye. Butler later posted on Facebook that the attack was “in the name of the White Race.”
“Hate violence harms individuals and threatens the diversity of entire communities,” said Principal Deputy Assistant Attorney General Gupta. “This vicious attack on an African-American man simply going about the routines of daily life offends human decency. We cannot undo the harms inflicted, but these convictions help vindicate everyone’s right to live free from racial violence.”
“Northern Ohio is a mosaic of different races, ethnicities and backgrounds,” said U.S. Attorney Rendon. “This defendant tried to strike at the diversity we cherish by participating in an unprovoked attack based solely on the victim’s race. He is now likely headed to prison, while we will continue to work together to ensure that everyone’s civil rights are protected.”
“These individuals engaged in a violent assault against another person based on his race and are now being held accountable,” said Special Agent in Charge Anthony. “The FBI will continue to work with our law enforcement partners to ensure hate crimes are thoroughly investigated and prosecuted to the greatest extent of the law.”
This case is being investigated by the FBI Cleveland Division’s Toledo Resident Agency, in cooperation with the Toledo Police Department and the Lucas County, Ohio, Prosecutor’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael Freeman of the Northern District of Ohio and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Toledo trio convicted at trial of forging will to steal $2.2 millionRead the Press Release
Three Toledo residents were convicted for forging a will to fraudulently gain control of an estate worth approximately $2.2 million, said U.S. Attorney Carole S. Rendon and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Susan M. Pioch, 60, Margaret L. McKnight, 42, and Kurt L. Mallory, 53 are convicted on all counts following a weeklong jury trial.
All three were convicted one count of conspiracy to commit bank fraud and mail fraud, 21 counts of bank fraud, seven counts of mail fraud and one count of aggravated identity theft. Pioch, McKnight and Mallory were convicted on additional counts of money laundering. McKnight was convicted on an additional count of structuring cash withdrawals, three tax counts and seven counts of causing a financial institution to fail to file a required report.
“This trio forged a will and stole a lifetime of savings and hard work,” Rendon said. “They will finally be held accountable for their actions. It’s particularly egregious that an attorney, who has sworn an oath to uphold our laws, was involved in these crimes.”
“The defendants engaged in a scheme to steal millions from a deceased man’s family, proving that money is the root of all evil,” Enstrom said. “It was imperative to make sure no corners were cut and no stone was left unturned. The IRS National Forensic Laboratory played a critical role in this investigation by examining the handwriting on numerous documents that ultimately proved that the will in question in this case was forged. Today’s convictions are a direct result of the excellent partnership of the IRS, U.S. Attorney’s Office and the Toledo Police Department.”
Martin E. Fewlas executed a will in 1993 devising his entire estate to his brother. If his brother did not survive Fewlas, the estate was to go to his nephew and then his great-nephew, identified in the indictment as JRM.
Fewlas owned the duplex located at 2557 Broadway Street in Toledo. He lived in the lower half and for approximately 10 years, McKnight and Mallory lived together in the upper half, according to court documents.
Fewlas died on Aug. 28, 2010, leaving an estate worth approximately $2.2 million. On Sept. 2, 2010, McKnight, Mallory and Pioch – an attorney who had previously done legal work for McKnight and Mallory forged a will in Fewlas’ name. The forged will was drafted by Pioch and named McKnight as the executor and sole devisee of Fewlas’ assets. Pioch filed the forged will with the Lucas County Probate Court on or around Sept. 2, 2010. McKnight identified herself as executor of the estate and Pioch identified herself as attorney for the executor in probate court documents, according to court documents.
By filing the forged will and concealing its fraudulent nature, Pioch, McKnight and Mallory succeeded in obtaining Probate Court authority to take possession of Fewlas’ assets. After obtaining those assets, they disbursed the assets to themselves for their own enrichment, according to court documents.
Pioch, McKnight and Mallory used those assets to purchase, among other things, a used car dealership, a 2000 Discovery motorhome for $55,036, a classic 1972 Chevrolet El Camino for $17,000, a 2010 Kia Soul SUV for $21,338, as well as property. They also withdrew more than $500,000 in cash for Fewlas’ estate proceeds, according to court documents.
JRM, Fewlas’ great nephew and the sole remaining devisee from the 1993 will, received nothing, according to court documents.
The case is being prosecuted by Assistant U.S. Attorneys Gene Crawford and Noah Hood following an investigation by the Internal Revenue Service – Criminal Investigations and the Toledo Police Department.
Psychiatrist sentenced to 18 months in prison for tax evasionRead the Press Release
A psychiatrist from Oregon, Ohio, was sentenced to serve 18 months in prison for tax evasion, 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 Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
According to court records, from as early as 2005, Sandra Vonderembse failed to pay taxes and filed and caused to be filed with the Internal Revenue Service false and fraudulent tax returns that included false statements regarding her income and the amount of tax due and owing. Additionally, from 2009 through 2011, Vonderembse falsely claimed to have no taxable income and to owe no taxes, despite earning more than $240,000 each year while working as a psychiatrist. Vonderembse used nominee entities to conceal income from the IRS, and sent fake financial instruments to the IRS in purported payment of her taxes. In total, from 2005 through 2011, she attempted to evade more than $360,000 in income tax liabilities.
“Tax evasion is not a victimless crime,” Enstrom said. “We all pay when others swindle the government. Tax evasion and tax fraud of this magnitude and with this degree of trickery, dishonesty and deceit, deserves to be punished. The IRS and Department of Justice remain determined and vigilant in ferreting out such schemes to cheat the honest taxpayers.”
In addition to the prison term imposed, Vonderembse was ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $565,128.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rendon commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Noah Hood and Trial Attorneys Jack Morgan and Jeffrey McLellan of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Ohio Psychiatrist Sentenced to Prison for Tax EvasionRead the Press Release
An Oregon, Ohio psychiatrist was sentenced today to serve 18 months in prison in the U.S. District Court for the Northern District of Ohio for tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Carole S. Rendon for the Northern District of Ohio.
According to court records, from as early as 2005, Sandra Vonderembse failed to pay taxes and filed and caused to be filed with the Internal Revenue Service (IRS) false and fraudulent tax returns that included false statements regarding her income and the amount of tax due and owing. Additionally, from 2009 through 2011, Vonderembse falsely claimed to have no taxable income and to owe no taxes, despite earning more than $240,000 each year while working as a psychiatrist. Vonderembse used nominee entities to conceal income from the IRS, and sent fake financial instruments to the IRS in purported payment of her taxes. In total, from 2005 through 2011, she attempted to evade more than $360,000 in income tax liabilities.
In addition to the prison term imposed, Vonderembse was ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $565,128.63.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rendon commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Noah Hood and Trial Attorneys Jack Morgan and Jeffrey McLellan of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Euclid man sentenced to 10 years in prison for 900 pills of fentanylRead the Press Release
A Euclid man was sentenced to 10 years in prison for having more than 900 pills of fentanyl, crack cocaine and a firearm, said Acting U.S. Attorney Carole Rendon.
Ryan Gaston, 30, was previously found guilty to possession with intent to distribute fentanyl, possession with intent to distribute crack cocaine, and possession of a firearm in furtherance of drug trafficking.
Gaston was arrested on Feb. 3 in Cleveland Heights. A search of his car, and subsequent search of his apartment, revealed rocks of crack cocaine, a 9 mm High Point rifle and approximately 925 round blue pills believed to be Oxycodone 30 mg pills.
A test revealed the pills were not Oxycodone, but instead fentanyl, according to court documents.
Fentanyl is a very potent synthetic opiate used to treat pain and as a surgical anesthetic. While heroin is approximately three times as potent as morphine, fentanyl is approximately 80-100 times more powerful than morphine, according to court documents.
“Each one of these pills is an overdose waiting to happen,” said Acting U.S. Attorney Carole Rendon. “This sentence demonstrates the seriousness of dealing these drugs. We will continue to attack the opioid problem from all sides – prevention, education, treatment and enforcement.”
This case is being prosecuted by Assistant U.S. Attorney Michelle Baeppler following an investigation by the Drug Enforcement Administration, the Cleveland Heights Police Department, the Cuyahoga County Sheriff’s Office and the Euclid Police Department.
North Canton man sentenced to more than three years in prison for $1.5 million fraudRead the Press Release
A North Canton was sentenced to more than three years in prison for his role in a $1.5 million fraud scheme, said U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
James W. Wallace was found guilty earlier this year of conspiracy to commit wire fraud and bankruptcy fraud. U.S. District Judge Benita Pearson sentenced Wallace to 41 months in prison and ordered him to pay approximately $900,000 in restitution.
Wallace, acting with others, engaged in a scheme to defraud at least 15 small business owners of at least $1.5 million through an investment and loan scam. This took place between 2009 and 2012, according to court documents.
Wallace, acting through his companies Wallace Financial and Washington Integrity, fraudulently induced individuals to purchase “aged shelf corporations,” which served no legitimate business purpose other than to funnel money back to Wallace for his personal use. Wallace told potential buyers, who were individuals who often could not get funding from traditional financial institutions, that they could get them loans substantially greater than any available to them from commercial institutions through the purchase of an “aged shelf corporation” through Wallace Financial and Washington Integrity.
Aged shelf corporations were corporations that had been created some years before, but had never engaged in any business and were corporations on paper only. Wallace induced the would-be borrowers to believe that with the purchase of these previously created but dormant corporations they would qualify for private loans, credit cards with high credit limits, and other credit opportunities in amounts greater than were otherwise available to them from financial institutions. Wallace misinformed buyers by telling them that they had private lenders waiting to lend money to the owners of these aged shelf corporations when he knew that no such private lenders existed. Wallace also falsely told would-be borrowers that other individuals had successfully obtained funding, but shrouded the details of their prior "successes” as well as the identities of their “private lenders” under a veil of mystery, citing proprietary and trade secrets, when no customers in fact received any private funding, according to court documents.
Wallace also fraudulently misrepresented that the money customers paid to Wallace Financial and Washington Integrity for aged shelf corporations was used to obtain trade references, gain high PAYDEX scores (credit scores for corporations), and effect private placement of the loans. Wallace falsely told customers that their profit in the transaction would come later, after loans had been funded, from a percentage of the loans they succeeded in acquiring. Instead, Wallace used a substantial share of the money to pay for personal expenses including strip clubs, jewelry, tattoo salons, meals at restaurants and bars, vacations and resort hotels, testosterone supplements, luxury products, sports equipment, tanning salons, payments on personal loans and mortgages, cash withdrawals, and transfers to personal accounts, according to court documents.
Wallace also filed a false bankruptcy petition in the Northern District of Ohio. This took place after FBI agents executed a search warrant related to the case, and after former Wallace Financial and Washington Integrity customers filed lawsuits against him. Wallace falsely withheld information regarding his involvement with Washington Integrity; the number and amounts of creditors and debts owed by Wallace and his companies, bank accounts he possessed, his interests in executory contracts in the forms of the aged shelf corporation agreements he held with customers of Wallace Financial and Washington Integrity, and by falsely claiming a negative gross income for the two years preceding his bankruptcy filing, according to court documents
This case is being prosecuted by Assistant U.S. Attorney Om Kakani, following an investigation by the Federal Bureau of Investigation.
Elyria man sentenced to nine years in prison for cocaine traffickingRead the Press Release
An Elyria man was sentenced to more than nine years in prison for trafficking cocaine, U.S. Attorney Carole S. Rendon said.
Ronnie Wright, Jr. was sentenced to 110 months in prison. He was found guilty earlier this year of possession with intent to distribute cocaine.
Wright was arrested last year after he fled from a traffic stop along Interstate 71. Wright reached speeds of more than 90 mph before crashing. Wright ran from the crash site but was eventually arrested. Officers found a total of seven vacuum-sealed bricks of cocaine in the area, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys Vasile Katsaros and Phillip J. Tripi following an investigation by the DEA and Ohio State Highway Patrol.
Cleveland man sentenced to more than six years in prison for selling heroin, fentanyl and cocaineRead the Press Release
A Cleveland man was sentenced to more than six years in prison for trafficking fentanyl, heroin and cocaine, law enforcement officials said.
Roland M. Smith, 43, was found guilty earlier this year of conspiring to distribute at least 40 grams of fentanyl, 100 grams of heroin and 500 grams of cocaine.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Pinjuh following an investigation by the Northern Ohio Law Enforcement Task Force.
California man indicted for mailing methamphetamine and heroin to AkronRead the Press Release
A California man was indicted for trafficking methamphetamine and heroin, U.S. Attorney Carole S. Rendon said.
Randolph Harris, 37, of Sacramento, was indicted on one count each of conspiracy to possess with intent to distribute methamphetamine and conspiracy to possess with intent to distribute heroin.
Harris mailed more than two kilograms of methamphetamine from California to Akron on Nov. 12. He also mailed more than 100 grams of heroin to Akron last month, 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 Henry F. DeBaggis 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.
Fairview Park man charged with making threats against the President-ElectRead the Press Release
A Fairview Park man was charged in federal court for making threats against President-Elect Donald Trump, said U.S. Attorney Carole S. Rendon and Craig Wisniewski, Special Agent in Charge of the Secret Service’s Cleveland office.
Zachary Benson, 24, posted threats on his Twitter account around 1 a.m. on November 9, including: “My life goal is to assassinate Trump. Don’t care if I serve infinite sentences. That man deserves to decease existing,” according to an affidavit filed in the case.
Benson later admitted to making the threats after watching election returns. He said he had no intentions related to the posts and was frustrated about the President-Elect’s policies, according to the affidavit.
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 Karrie Howard following an investigation by the U.S. Secret Service.
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.
Youngstown man sentenced to 10 years in prison for firearms crimeRead the Press Release
A Youngstown man was sentenced to 10 years in prison for being a felon in possession of a firearm, said U.S. Attorney Carole S. Rendon and ATF Special Agent in Charge Trevor Velinor.
Arian O'Connor, 39, also known as Noble Bullhorn Sirius O’Connor Bay, possessed a Maddi Company, Model Arm, 7.62 rifle on or about August 12, 2015, O’Connor, despite prior convictions for felonoius assault and two convictions for being a felon in possession of a firearm, according court documents.
These cases are being prosecuted by Assistant U.S. Attorney David M. Toepfer following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Youngstown Police Department and the U.S. Probation Office.
Ohio man sentenced to nearly two years in prison for stealing $350,000 through fraudulent horseracing ventureRead the Press Release
A Logan man was sentenced to nearly two years in prison for stealing more than $350,000 from investors through a fraudulent horseracing venture and using the money to buy expensive clothes, vehicles and pay for gambling expenses, law enforcement officials said.
Jonathan Pippin, 30, was sentenced to 21 months in prison and ordered to pay $358,370 in restitution.
He previously pleaded guilty to two counts of wire fraud and one count of money laundering.
Pippin created PJH Horse Racing, Inc. in 2011. The company was headquartered in Cleveland and purported to be in the business of purchasing race horses. Pippin had sole control over the company and its various bank accounts, according to court documents.
Pippin solicited investors to his company under false pretenses. He told potential investors that they were investing in a venture with a wealthy businessman and widely-known horse racing figure – identified in the charges only as M.R. – when in reality Pippin did not know M.R.
Pippin falsely represented to investors that they would receive a percentage of the winnings of M.R.’s horses when he knew it was not true. He also told investors that he had stud rights to M.R.’s horses when he did not, according to court documents.
Pippin used the investors’ money to enrich himself and pay personal expenses, such as the purchase of a Cadillac Escalade, tickets to sporting events, gambling expenses, rent and expensive clothing. Four investors lost a combined $358,370, according to court documents.
“This defendant created a web of lies to pay for fancy cars, expensive clothes and gambling expenses,” Rendon said. “He defrauded investors to pay for a lifestyle he couldn’t afford. Now he’ll be held accountable for his actions.”
"When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime," said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "Today's sentence demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain."
“This case is another example of the success of the task force concept where multiple federal agencies bring expertise to an investigation resulting in a successful conviction,” said Craig Wisniewsky, Special Agent in Charge of the Secret Service's Cleveland office.
This case is being prosecuted by Assistant U.S. Attorney Christos M. Georgalis following an investigation by the IRS-CI and United States Secret Service.
North Royalton man faces child pornography chargesRead the Press Release
A federal grand jury returned a two-count indictment charging Shawn L. Hicks, 20, of North Royalton, with receiving, distributing, and accessing with intent to view visual depictions of minors engaged in sexually explicit conduct, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that from on or about September 5, 2014, through on or about July 15, 2015, Hicks knowingly received and distributed numerous computer files that contained visual depictions of minors engaged in sexually explicit conduct. The indictment also alleges that from on or about December 19, 2014, through on or about March 4, 2015, Hicks knowingly accessed with intent to view on his computer visual depictions of minors engaged in sexually explicit conduct, to include at least one image involving a prepubescent minor or a minor who had not attained 12 years of age.
Assistant United States Attorney Megan R. Miller is prosecuting the case following an investigation by the Federal Bureau of Investigation.
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. 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.
Mansfield man indicted on child pornography chargesRead the Press Release
A Mansfield man was indicted in federal court on child pornography charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Mitchell A. Owens, 29, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
Owens 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. This took place between August and September 2016, according to the indictment.
The indictment also charges that on or about October 11, 2016, Owens possessed a computer hard drive 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 Federal Bureau of Investigation, the Mansfield Police Department and the Canton 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.
Guatemalan man charged with illegally reentering U.S.Read the Press Release
A federal grand jury returned an indictment charging a Guatemalan citizen with re-entering the United States illegally, said said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Julio Lopez-Rodriguez, 41, was found in Cleveland after being deported to Guatemala in 2003 following an aggravated felony conviction, according to the indictment.
Assistant United States Attorney Karrie D. Howard is prosecuting the case following an investigation by the United States Immigration and Custom Enforcement, Department of Homeland Security.
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.
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 charged with enticement, sexual exploitation of a childRead the Press Release
A Cleveland man was charged with enticement, sexual exploitation of a child and receiving visual depictions of a minor engaged in sexually explicit conduct, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Kevin D. Wyrock, 49, knowingly used a cellular phone with Internet connectivity, to persuade, induce, entice, coerce and attempt to persuade, induce, entice and coerce a 12-year-old girl, to engage in sexual activity for which Wyrock could be charged with a criminal offense. This took place in October 2015, according to the indictment.
The indictment also charges that during that same time period, Wyrock used, persuaded, enticed and coerced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, knowing and having reason to know that such visual depiction would be transported and transmitted, using any means and facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce, and such visual depiction was actually transported and transmitted, using any means and facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce.
The indictment also charges that during that same time period, Wyrock knowingly received, using any means and facility of interstate and foreign commerce, numerous digital files, which files contained visual depictions of a real minor engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce.
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 and Miami offices of the Federal Bureau of Investigation and the Juniper (Florida) 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.
Cleveland man charged for bank robberies and escapeRead the Press Release
A federal grand jury indicted Derrick Swinney, 46, of Cleveland, on one count of escape and two counts of bank robbery, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on or about January 13, 2016, Swinney walked away from the Oriana House, a correctional halfway house in Cleveland, after having been released from federal prison following a 2005 conviction for bank robbery.
The indictment further alleges that Swinney robbed the Key Bank at 3110 W. 117th Street, in Cleveland, on September 20, and again on October 4, 2016, of a total of $4,870.
The U.S. Marshal Service conducted the investigation in conjunction with the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Karrie D. Howard.
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.
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 charged with mailing threatening communicationRead the Press Release
A federal grand jury indicted Michael G. Roby, 46, of Amherst, on charges of mailing a letter threatening the lives of a male victim and his family, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on or about June 15, 2016, Roby knowingly caused to be delivered by the United States Postal Service a letter to the victim that contained threats to injure the victim as well as the victim’s mother, brother, wife, and son.
The Amherst Police Department and the Federal Bureau of Investigation conducted the investigation. The case is being prosecuted by Assistant United States 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.
Toledo man pleads guilty to hate crime for beating African-American strangerRead the Press Release
Charles Butler, 33, of Toledo, pleaded guilty today to a federal hate crime for beating an African-American stranger he saw on the street.
The plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights 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.
According to his guilty plea, on May 18, 2016, Butler and Robert Paschalis drove past the victim, A.W., on the street while A.W. was unloading items from his truck. The two men circled back, got out of their own truck and began attacking A.W. while yelling racial slurs. Butler grabbed a broom from the back of A.W.’s truck and struck A.W. with it multiple times. Butler admitted during his plea to singling out and beating A.W. because he is African American.
The beating stopped only when two off-duty Ohio state police officers happened on the scene and pulled Butler and Paschalis away. A.W. suffered an orbital fracture and damage to his right eye. Butler later posted on Facebook that the attack was “in the name of the White Race.”
“Race-motivated violence violates the law and offends human decency,” said Principal Deputy Assistant Attorney General Gupta. “The Justice Department will always vigorously prosecute those who carry out violence against individuals because of the color of their skin – crimes which threaten the very fabric and core values of our country.”
“Northern Ohio is a mosaic of different races, ethnicities and backgrounds,” said U.S. Attorney Rendon. “This defendant tried to strike at the diversity we cherish by participating in an unprovoked attack based solely on the victim’s race. He is now likely headed to prison, while we will continue to work together to ensure that everyone’s civil rights are protected.”
“These individuals engaged in a violent assault against another person based on his race and are now being held accountable,” said Special Agent in Charge Anthony. “The FBI will continue to work with our law enforcement partners to ensure hate crimes are thoroughly investigated and prosecuted to the greatest extent of the law.”
Paschalis has also been charged with a hate crime. His charges are still pending. An indictment is merely an accusation and defendants are presumed innocent unless proven guilty.
This case is being investigated by the FBI Cleveland Division’s Toledo Resident Agency, in cooperation with the Toledo Police Department and the Lucas County Prosecutor’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael Freeman of the Northern District of Ohio and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Ohio Man Pleads Guilty to Hate Crime for Beating African-American StrangerRead the Press Release
Charles Butler, 33, of Toledo, Ohio, pleaded guilty today to a federal hate crime for beating an African-American stranger he saw on the street.
The plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights 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.
According to his guilty plea, on May 18, 2016, Butler and Robert Paschalis drove past the victim, A.W., on the street while A.W. was unloading items from his truck. The two men circled back, got out of their own truck and began attacking A.W. while yelling racial slurs. Butler grabbed a broom from the back of A.W.’s truck and struck A.W. with it multiple times. Butler admitted during his plea to singling out and beating A.W. because he is African American.
The beating stopped only when two off-duty Ohio state police officers happened on the scene and pulled Butler and Paschalis away. A.W. suffered an orbital fracture and damage to his right eye. Butler later posted on Facebook that the attack was “in the name of the White Race.”
“Race-motivated violence violates the law and offends human decency,” said Principal Deputy Assistant Attorney General Gupta. “The Justice Department will always vigorously prosecute those who carry out violence against individuals because of the color of their skin – crimes which threaten the very fabric and core values of our country.”
“Northern Ohio is a mosaic of different races, ethnicities and backgrounds,” said U.S. Attorney Rendon. “This defendant tried to strike at the diversity we cherish by participating in an unprovoked attack based solely on the victim’s race. He is now likely headed to prison, while we will continue to work together to ensure that everyone’s civil rights are protected.”
“These individuals engaged in a violent assault against another person based on his race and are now being held accountable,” said Special Agent in Charge Anthony. “The FBI will continue to work with our law enforcement partners to ensure hate crimes are thoroughly investigated and prosecuted to the greatest extent of the law.”
Paschalis has also been charged with a hate crime. His charges are still pending. An indictment is merely an accusation and defendants are presumed innocent unless proven guilty.
This case is being investigated by the FBI Cleveland Division’s Toledo Resident Agency, in cooperation with the Toledo Police Department and the Lucas County Prosecutor’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael Freeman of the Northern District of Ohio and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Longtime fugitive Eric Bartoli sentenced to 20 years in prison for defrauding hundreds of peopleRead the Press Release
Eric V. Bartoli, who a fugitive for more than a decade, was sentenced to 20 years in prison for defrauding hundreds of investors out of millions of dollars in the 1990s, law enforcement officials said.
Bartoli pleaded guilty earlier this year to eight counts, including conspiracy, securities fraud, sale of unregistered securities, wire fraud, mail fraud and attempted income tax evasion.
Bartoli operated a large-scale Ponzi scheme from 1995 through 1999. He created and operated a company by the name of Cyprus Funds, Inc., which was based in Doylestown, Ohio and incorporated in Central America. Bartoli and his co-conspirators operated Cyprus to sell certificates of deposit and unregistered mutual funds. Cyprus raised approximately $65 million from an estimated 800 investors in Latin America and the United States. Some of Cyprus’s victims included retirees, according to court records.
Bartoli was sued in 1999 by the Securities and Exchange Commission on charges involving the Cyprus Funds, Inc. Bartoli did not appear at a scheduled hearing regarding the SEC charges. He was subsequently found in contempt of court and a civil arrest warrant was issued. Bartoli had fled Ohio and was arrested in New Hampshire. Bartoli was not detained at that time and became a fugitive.
An indictment was filed against Bartoli in the U.S. District Court for the Northern District of Ohio in October 2003.
Bartoli was taken into custody by the Peruvian National Police in Lima, Peru, in 2013. The operation was a joint effort between the FBI, Diplomatic Security Service, and the Peruvian National Police. He was returned to the United States last year.
“Mr. Bartoli spent years stealing millions of dollars from hard-working people, then more than a decade on the run,” said U.S. Attorney Carole S. Rendon. “Sometimes the wheels of justice grind slowly, but today Mr. Bartoli was finally held accountable for his crimes. The fact that he will spend the foreseeable future in prison is a testament to the efforts of everyone who worked on this case.”
“After years of living on the run, Mr. Bartoli will now serve time behind bars for swindling individuals out of large sums of money, including entire life savings,” said FBI Special Agent in Charge Stephen D. Anthony. “The FBI will continue to investigate fraudsters, like Eric Bartoli, and will hold them accountable for their criminal behavior, no matter how long it takes and no matter where they try to hide."
“More than a decade has passed since Mr. Bartoli’s criminal actions were brought to light in an indictment. Well, today marks the end of a long successful investigation that uncovered a multi-million dollar Ponzi scheme laced with a web of financial lies that left 800 investors in financial peril,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The IRS, FBI, and the U.S. Attorney’s Office never stopped pursuing Mr. Bartoli, proving that you can run, but you cannot hide from the federal government.”
This case is being prosecuted by Assistant U.S. Attorneys Antoinette T. Bacon and Christos M. Georgalis following an investigation by the Federal Bureau of Investigation, Internal Revenue Service and the Securities and Exchange Commission.
Puerto Rican resident sentenced to more than 21 years in prison for assaulting officers, other offensesRead the Press Release
A Puerto Rican man was sentenced to more than 21 years in prison for assaulting federal officers, failing to register as a sex offender and a firearms offense, law enforcement officials said.
Luis Cruz-Ramos, 30, pleaded guilty earlier this year to one count each of assaulting federal officers, brandishing a firearm in furtherance of crime of violence and failing to register as a sex offender.
Ramos was wanted on an arrest warrant when he was assaulted two special deputy U.S. Marshals on April 1, and brandished a firearm to do so, according to the indictment. Ramos also failed to register as a sex offender between 2013 and 2016 after traveling to Ohio, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney David M. Toepfer following an investigation by the U.S. Marshals Service, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives and Ohio State Highway Patrol.
The Cleveland Museum of Art to transfer 14th-century manuscript leaf to U.S. government for delivery to ItalyRead the Press Release
Carole Rendon, the United States Attorney for the Northern District of Ohio, and The Cleveland Museum of Art (the Museum) announced today the transfer of a 14th-century manuscript leaf from an Antiphonary to U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) for delivery to Italy making possible its re-integration with the Antiphonary.
The Master of Dominican Effigies, an important illuminator, created an illuminated manuscript known as Codex D sometime between 1335 and 1345. Codex D, essentially a type of hymnal, is parchment with leather binding and contained seven illuminated pages.
The illuminated page with the initial L depicts Saint Lucy (Santa Lucia). A portion of the page was removed from the Antiphonary and is known as a leaf. The leaf is ink, tempera and gold on parchment. It measures 44.3 cm high and 35.2 cm wide
The Antiphonary was formerly in the Church of Saints Ippolito and Biagio of Castelfiorentino and is now preserved in the Museum of Santa Verdiana, Castelfiorentino, Italy.
The leaf was purchased, in good faith, by the Museum in 1952, at which time it was attributed to a different artist. It has not been on display for more than 10 years.
The Museum was contacted by ICE after a second leaf appeared on the Swiss market. That leaf was recently turned over to the Italian government. Working collaboratively with ICE to research the history of the leaf and after evaluating the information provided by the Italian government, the Museum agreed the leaf should be transferred to Italy to be reunited with the Antiphonary.
“Once we were able to substantiate the information provided, we decided that the best place for the leaf was back with the Antiphonary. We feel the leaf has greater significance if it is reunited with the other illuminations in the manuscript. Along with the recovery of a second leaf, the Antiphonary will now be complete” said William Griswold, director of the Cleveland Museum of Art. “We appreciate Homeland Security bringing this to our attention and working with us to effectuate the right result for the work.”
Rendon noted that the cooperation between her office, ICE and the Museum has resulted in the transfer.
“This story of a beautiful illuminated page missing from the Antiphonary for many years will have a happy ending thanks to the work of the Italian government, ICE’s presence in Rome, ICE here in Cleveland, our office and the Museum,” Rendon said.
“Cultural artifacts and antiquities have a monetary value in the markets where they are bought and sold. But to the item’s true owners, the value cannot be measured monetarily,” said Steve Francis, acting special agent in charge for HSI Detroit. “We’re pleased to announce with our partners at the U.S. Attorney’s Office and with the Museum that today’s transfer brings us one step closer to reuniting this treasure with its rightful owner, the Italian people."
The Antiphonary is a partially illuminated liturgical manuscript intended for use by a choir. A delivery date to the Italian government is being finalized.
Michigan men indicted for credit card fraudRead the Press Release
Two Michigan men were indicted for credit card fraud for having 94 cards with stolen account numbers and names, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Timothy Darnel Keith, 25, of Canton, Michigan, and Chris Monte Huddelston, 22, of Flint, Michigan, were charged with conspiracy to commit access device fraud, possession of counterfeit and unauthorized access devices and possession of access device making equipment.
Keith and Huddleston purchased stolen and/or fraudulently obtained credit card account information and other bank account information over the Internet. The pair had a credit-card reader and writer which they used to produce counterfeit credit cards, according to the indictment.
They then drove to Ohio from Michigan to use the counterfeit gift cards and stored value credit cards they had produced. They had 94 such cards on April 6, 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 United States Secret Service in Toledo. The case is being prosecuted by Assistant U.S. Attorney Noah P. Hood.
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.
Youngstown man pleads guilty to selling heroin that resulted in a fatal overdose, additional gun and drug crimesRead the Press Release
A Youngstown man pleaded guilty to selling heroin that resulted in a fatal overdose, as well as additional firearms and narcotics crimes, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Lebron Charles Bunkley, 37, admitted to selling heroin to a man identified in court documents as J.P. J.P. was found dead in a vacant lot on May 15, still clutching a hypodermic needle in his hands. A search of his cell phone revealed that his last outgoing call was to Bunkley, according to court documents.
Police searched Bunkley’s house and found 286 grams of heroin, 345 grams of powder cocaine, 84 grams of crack cocaine, two firearms and ammunition.
Bunkley pleaded guilty to distribution of heroin, cocaine and crack cocaine, being a felon in possession of firearms and using firearms and ammunition in furtherance of the drug trafficking.
Bunkley is scheduled to be sentenced Feb. 7. The federal sentence guidelines call for a sentence of between 21 and 27 years in prison, according to court documents.
“We will continue to prosecute and seek stiff sentences for dealers who sell heroin that kills our neighbors,” Rendon said. “Aggressive enforcement will remain part of the comprehensive strategy – along with treatment, education and changing prescribing practices – required to combat this epidemic.”
The investigation preceding the indictment was conducted by the Mahoning Valley Law Enforcement Task Force, the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
Summit County man charged after being arrested with 24 pounds of cocaineRead the Press Release
A Summit County man was charged in federal court with possession with intent to distribute drugs after he was arrested with more than 24 pounds of cocaine, law enforcement officials said.
Jerry J. Davis, Jr. 35, of New Franklin, was pulled over for speeding on Nov. 1 in Akron. He crashed after attempting to flee police. Davis then ran and jumped off the bridge at East Miller Avenue and Broadway Street, but was arrested near where he jumped from the bridge, according to an affidavit filed in U.S. District Court.
Officers searched Davis’ vehicle and found 11 kilograms of cocaine. They also found a loaded Glock .40-caliber pistol with an extended magazine, according to the complaint.
This case is being prosecuted by Assistant U.S. Attorney Aaron Howell following an investigation by the Drug Enforcement Administration, the Akron Police Department, the Federal Bureau of Investigation and the Ohio State Highway Patrol.
If convicted, the defendant's sentence will be determined by the court after reviewing factors unique to this case, including the defendants’ 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.
A charge 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.
Sandusky man charged with trafficking heroin and cocaineRead the Press Release
A Sandusky man was arrested today and charged in federal court with trafficking heroin and cocaine, law enforcement officials said.
Daniel N. Hallingshead, 21, was charged with conspiracy to possess with intent to distribute at least one kilogram of heroin and possession with intent to distribute at least 500 grams of cocaine.
Hallingshead and others sold large amount of heroin and cocaine from several houses in the Sandusky area from at least October 2015 through this week, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Alissa M. Sterling and Duncan Brown following an investigation by the Drug Enforcement Administration, the Sandusky Police Department, the Ohio Bureau of Criminal Investigation, the Perkins Township Police Department and the Erie County Sheriff’s Office.
If convicted, the defendant's sentence will be determined by the court after reviewing factors unique to this case, including the defendants’ 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.
A charge 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.
The investigation is ongoing.
Akron man sentenced to nearly 10 years in prison for extortion plotRead the Press Release
An Akron man was sentenced to nearly 10 years in prison threatening a man with death unless he was given money or introduced to a source with drugs, 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.
Franklin D. Conley, 28, was convicted earlier this year of one count of violating the Hobbs Act, three counts of use of a communication facility to facilitate a drug offense and one count of interstate communication with intent to extort. He was sentenced to 115 months in prison.
Conley and Patrick Griffin repeatedly threatened the victim and his family, beginning in February 2015, with serious physical harm or death if they were not given money or introduced to a source of illegal drugs, according to court documents and trial testimony.
Griffin, 29, also of Akron, has pleaded guilty to his role in the crime.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The matter was prosecuted by Assistant United States Attorneys Teresa Riley and Robert Bulford.
Toledo mother and son charged for Internet-based fraud, sending money to NigeriaRead the Press Release
A mother and son from Toledo were charged for their roles in a conspiracy to defraud people out of tens of thousands of dollars and then launder the stolen money, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Criminal informations were filed charging Patsy A. Schmidt, 53, and Bradley Schmidt, 22, with one count of conspiracy to launder money and one count of money laundering.
Patsy Schmidt fraudulently obtained nearly $50,000 between 2010 and 2013, while Bradley Schmidt fraudulently obtained nearly $24,000 between 2012 and 2013, according to the charges.
According to the charges:
The Schmidts and other co-defendants targeted people selling items on sites such as Craigslist.com. They sent emails to these people expressing interest in an item for sale when they had no intention of buying it.
The Schmidts and others stated to the seller that they would use PayPal to send the cost of the item plus an additional fee to cover the cost of a pick-up agent, transfer agent, shipping or hauling. The defendants then requested the victims wire the fee to the pick-up agent via Western Union or MoneyGram. The pick-up agent was identified as Patsy Schmidt, Bradley Schmidt or one of the other co-conspirators.
The Schmidts and others then used email addresses that resembled PayPal email accounts and wrote emails falsely stating that the purported buyer had placed money into the victim’s PayPal account. They stated the money would not be available until after the victim sent verification of a money transfer for the so-called pick-up agent’s fee.
Once the victim sent verification that the money had been sent, the Schmidts ceased communication and kept the money that had been wired to them. Money was wired to the Toledo area from Massachusetts, Oregon, Texas, Washington and elsewhere.
The Schmidts then wired the proceeds of the fraud to co-conspirators in Nigeria and retaining a portion of the money for themselves.
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 United States Secret Service, in Toledo, Ohio. The case is being handled by Assistant United States Attorney Noah P. Hood.
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.
University Heights man indicted with four pounds of heroin, 11 pounds of cocaine and 10 firearmsRead the Press Release
A University Heights man was indicted in federal court after investigators found him with more than four pounds of heroin, approximately 11 pounds of cocaine and 10 firearms, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Marcus Labrone Morris, 42, was named in a four-count indictment, charged with possession with intent to distribute heroin, possession with intent to distribute cocaine, being a felon in possession of firearms, and operating the home at 3582 Farland Road as a drug house.
U.S. Postal Inspectors interdicted a package sent from California to 3598 East 147th Street in Cleveland on Oct. 3. The package was address to Mrs. Momma James. The package was later determined to contain two kilograms of heroin – one kilogram a light gray powdery substance and the other kilogram a black tarlike substance, according to court documents.
The package was delivered and on Oct. 4, Morris took the target package from the porch on East 147th Street and placed it in the bed of his truck. After approximately 20 minutes, during which time Morris was making counter-surveillance maneuvers, he was arrested and the package was recovered. Morris and his wife then gave consent to search their home at 3582 Farland Drive in University Heights. Investigators found approximately five kilograms of cocaine and 10 firearms and ammunition, according to court documents.
Morris is forbidden from possessing firearms because he was convicted of cocaine trafficking in 2001 in Trumbull County Common Pleas Court.
“This case is another grim reminder that heroin and other dangerous drugs are in our community and don’t adhere to any boundaries,” Rendon said. “We will continue to work with our partners to get narcotics off the streets and firearms out of the hands of people who are not allowed to possess them.”
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 Matthew Cronin 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.
Prison inmate indicted for threatening federal judgesRead the Press Release
A five-count Indictment charging Joseph A. Huber, 47, formerly of Cleveland, with threatening to kill two federal judges and to blow up the federal buildings they respectively preside in, said U.S. Attorney Carole S. Rendon and U.S. Marshal Peter J. Elliott.
The indictment alleges that on September 26, 2016, Huber wrote a letter to Cleveland-based U.S. District Court Judge Christopher A. Boyko and threatened to kill him and members of his family. In that same letter, Huber additionally threatened to blow up the “fancy federal building” where Judge Boyko presides and kill a federal prosecutor that previously convicted Huber in 2014.
The Indictment next alleges that on September 26, 2016, Huber wrote a letter to Akron-based U.S. Magistrate Judge Kathleen B. Burke and threatened to kill her for dismissing a civil suit Huber had previously filed. Like the letter to Judge Boyko, Huber threatened to blow up the federal courthouse where Magistrate Judge Burke presides.
Finally, the Indictment alleges that on October 6, 2016, Huber wrote another letter to Magistrate Judge Burke and threatened to kill her.
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 Marshal’s Service—Office of Protective Intelligence.
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.
Massillon man charged with enticement and distribution of child pornographyRead the Press Release
Richard Snyder, 72, of Massillon, was charged with enticement and distribution of child pornography, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Snyder knowingly used a computer and the Internet, to attempt to persuade, induce, entice and coerce, a 13-year-old girl, to engage in illegal sexual activity with him. This took place from May 26 through August 17, 2016, according to the indictment. The indictment also charges that on or about July 25, 2016, and July 26, 2016, Snyder knowingly distributed and attempted to distribute child pornography that, using any means and facility of interstate and foreign commerce, had been shipped and transported in and affecting interstate and foreign commerce by any means, including by computer.
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. The case was investigated by the Canton Office of the Federal Bureau of Investigation, the Ohio Internet Crimes Against Children Task Force, the Vermont Internet Crimes Against Children Task Force, the Jackson Township Police Department and the Canton 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.
Four men sentenced to prison for defrauding hundreds of investors out of $10 millionRead the Press Release
Four Ohio men were sentenced to prison for defrauding investors out of more than $10 million by selling unregistered securities and making several misrepresentations to investors about the product they purported to develop, law enforcement officials said.
Kenneth Jackson, 59, of Glenmont, William Schureck, 81, of Lexington, Dennis Deciancio, 73, of Macedonia, and Daryl Dane Donohue, 67, of Mansfield, were convicted following a trial earlier this year on counts including conspiracy to commit mail and wire fraud, conspiracy to launder money, mail fraud, wire fraud, money laundering, making false statements and other charges.
Jackson was sentenced to more than 15 years in prison. Schureck was sentenced to nine years in prison. Deciancio was sentenced to nearly six years in prison. Donahue was sentenced to more than four years in prison.
“These defendants misled investors and lied about their product,” said U.S. Attorney Carole Rendon said. “They earned these prison sentences by stealing the millions of dollars from hundreds of people.”
“These four individuals conspired to misrepresent a product to their investors in order to make a profit,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue efforts to bring to justice those that have duped investors out of their hard-earned money.”
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Today's sentencings demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain. IRS Criminal investigators will continue to use their financial expertise to identify and trace laundered funds in these types of investor fraud schemes.”
All four men were affiliated with Medical Safety Solutions, or MSS, a company Jackson founded in 2007 which operated out of Mansfield and had a purported “research and development center” at Jackson’s home in Glenmont. Jackson held the title of Director of Research and Development at MSS. Schureck co-founded the company held the title of Chief Executive Officer at MSS. Deciancio co-founded the company and attended trade shows on the company’s behalf. Donohue was a longtime associate of Jackson who communicated with shareholders of MSS and held himself out as an “FDA consultant” hired by the company for the sole purpose of obtaining Food and Drug Administration approval for the Sharps Terminator, according to trial testimony.
The founders of MSS held the company out as an entity created to develop, market and sell a hypodermic needle destruction device they called the Sharps Terminator. The Sharps Terminator required premarket approval from the FDA before it could be sold in the United States. Jackson and Schureck filed a provisional application for a patent on the Sharps Terminator around April 2007 but did not file an actual patent application until September 2011. MSS filed a premarket approval application for the Sharps Terminator in October 2012. Between 2007 and May 2013, the defendants were engaged in the unregistered sale of securities. They did this by seeking out individuals to buy private shares of stock in MSS, but those shares were not registered with the Securities and Exchange Commission, according to trial testimony.
They defrauded investors by inducing them to buy stock and making false and fraudulent misrepresentations about MSS and the Sharps Terminator, including: that MSS had submitted a premarket approval application when it had not; that FDA approval of the Sharps Terminator was forthcoming or imminent when MSS had not even initiated the approval process; that the FDA had approved the Sharps Terminator when it had not; that the product was “market ready” that was ready for mass production when it was not, and other misrepresentations, according to trial testimony.
To make MSS appear functional and the Sharps Terminator market ready, the defendants took current and prospective investors to MSS’s “R&D facility” and showed them parts, a small number of assembled Sharps Terminator units, and large numbers of Sharps Terminator boxes, many of which were really empty, according to the indictment.
More than 500 investors were defrauded as part of the scheme. They lost more than $10 million between 2007 and 2013, according to trial testimony and court documents.
Jackson and Schureck transferred the money to cover other expenses, and Jackson gambled more than $3.3 million at Mountaineer Casino between 2009 and 2013, according to the court documents.
This case is being prosecuted by Assistant U.S. Attorneys Rebecca Lutzko and Adam Hollingsworth following an investigation by the Federal Bureau of Investigation, the Internal Revenue Service—Criminal Investigations and the Food and Drug Administration.
Update Feb. 5, 2025:
In May 2013, before the indictment was returned in this matter, the defendants caused the company that they operated in connection with their fraud scheme—Medical Safety Solutions (“MSS”)—to transfer the use and management of the intellectual property for the Sharps Terminator device, including its patents, designs, proprietary information, and trademarks, to a Texas limited liability company known as “Sharps Terminator LLC.” Sharps Terminator LLC further took over the FDA application and approval process for the device under this agreement, and was given full control of the day-to-day management of the transferred intellectual property and the manufacture of distribution of the product. Defendants transferred the intellectual property in return for MSS and its shareholders receiving a share of net profits from Sharps Terminator LLC’s possible future sale of the Sharps Terminator device. As of the sentencing date (October 25, 2016), two independent third parties, specifically, Texas limited liability companies The Bucley Group, LLC, and Four on Point, L.L.C., owned and operated Sharps Terminator LLC, and none of the charged defendants maintained any control of any of those companies. Further, as part of the defendants’ sentences, the district court ordered that all defendants disgorge any shares of stock that they held in MSS, such that the MSS shareholders who were the victims of defendant’s scheme would receive the benefit of MSS’s agreement with Sharps Terminator LLC.
Former Chief Operating Officer at MetroHealth Hospitals indicted for taking bribesRead the Press Release
The former Chief Operating Officer of MetroHealth Hospital System is one of four men indicted for their roles in a conspiracy to defraud the hospital and others through a series of bribes and kickbacks totaling hundreds of thousands of dollars related to the hospital’s dental program, law enforcement officials said.
Named in the indictment are: Edward R. Hills, 56, of Aurora; Sari Alqsous, 32, of Cleveland; Yazan B. Al-Madani, 32, of Westlake; and Tariq Sayegh, 38, of Cleveland.
Hills worked in various capacities at MetroHealth, including as Chief Operating Officer and Director of MetroHealth Dental. He also served as interim President and Chief Executive Officer from December 2012 through July 2013. Alqsous, Al-Madani and Sayegh are dentists who worked for MetroHealth.
“I hoped we had reached a point in Cuyahoga County where public employees taking cash bribes and using downtown apartments to entertain friends was a thing of the past,” U.S. Attorney Carole S. Rendon said. “We will remain vigilant in stamping out public corruption and these defendants will be held accountable for their crimes.”
“Being extorted is not what a dental resident is expecting when applying to a dental program but that is exactly what happened, and that is not the only illegal scheme these four devised,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “MetroHealth officials discovered possible wrongdoing, contacted the FBI, and partnered with the FBI to ensure that these individuals would be held accountable for their criminal actions.”
“These government-funded programs were designed to help the men, women, and children of Cuyahoga County, but these individuals defrauded them for their own personal gain and used their companies as personal piggy banks." said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Therefore, in partnership with the U.S. Attorney’s Office and the FBI, the IRS Criminal Investigation Division gives priority to investigations involving the alleged breach of the public trust by public officials at any level.”
“This investigation found that these defendants were motivated by greed to manipulate the health care system and extort dental residents in order to line their own pockets,” said Ohio Attorney General Mike DeWine.
According to the 33-count indictment unsealed today in U.S. District Court:
Hills, Alqsous and Al-Madani engaged in a RICO conspiracy from 2008 through this year involving a series of elaborate bribery conspiracies, witness tampering and other crimes. These bribes include Hills soliciting cash, checks, a $3,879 Louis Vuitton briefcase, a 55-inch television, airline flights and use of a downtown apartment from Alqsous, Al-Madani and others. In return, Hills took official actions on their behalf, including allowing them to work at their private dental businesses during regular business hours while receiving a full-time salary from MetroHealth.
Alqsous, Al-Madani and others gave cash, checks and other things of value to Hills beginning in 2009. The indictment details text messages and meetings, often at expensive restaurants, which resulted in cash being deposited into Hills’ bank accounts.
Alqsous sent a text message to Al-Madani and another person in 2013 that stated: “With 22nd of October approaching we ll be celebrating Dr hills bday earlier this year…1000 dollars each is the gift from the 3 sons their father.” Later that day, $3,000 was deposited into Hills’ bank account.
In 2012, Alqsous rented and lived in an apartment at the Perry Payne apartment building in downtown Cleveland. When he bought a residence, Hills instructed Alqsous to continue paying rent and other bills at the Perry Payne building, even though Alqsous would no longer be living there. Hills used the Perry Payne apartment to house an associate and for his own personal use in 2013 and 2014 while Alqsous, acting on Hills’ orders, continued to pay rent and other bills.
Hills instructed Alqsous to purchase furniture for the apartment for Hills’ personal use. Alqsous sent Hills a text in 2013 stating: “I bought your bedroom yesterday…there is mirrors everywhere…You will like it.”
Hills became interim President and CEO of the MetroHealth Hospital System in December 2012. Around that time, he told Alqsous, Al-Madani and others that he wanted a specific Louis Vuitton briefcase because his predecessor had a similar briefcase.
Alqsous texted a photo of the briefcase to Hills and wrote: “The guys are also very excited about their raise haha.” Hills responded with: “Thanks I’m so excited to have my bag to start my new job as #1.” Later that day, Alqsous, Al-Madani and others purchased the briefcase for $3,879 from Saks Fifth Avenue in Beachwood and later presented it to Hills.
As director of MetroHealth Dental, Hills was responsible for determining monthly bonuses for dentists who produced receipts in excess of their monthly salary and benefits. Dentists typically received a monthly bonus totaling 25 percent of the monies they generated for excess receipts.
Between 2010 and 2014, Hills regularly upwardly adjusted the bonuses of Alqsous, Al-Madani and others, by a total of approximately $92,829.
Hills also allowed Alqsous, Al-Madani and others to retain full-time salaries and benefits at MetroHealth without requiring them to work full-time hours, thus allowing them to operate private dental clinics. Hills, acting at the request of Alqsous and Al-Madani, provided MetroHealth dental residents to practice at those private clinics during regular business hours. Neither Alqsous nor Al-Madani paid wages or salaries to the resident dentists.
Additionally, Alqsous, Al-Madani and Sayegh solicited and accepted bribes totaling tens of thousands of dollars from prospective candidates to the MetroHealth Dental residency program.
In a typical year, the MetroHealth Dental residency accepted four to six candidates for the residency program from a pool of 40 to 60 applicants. Alqsous, Sayegh and Al-Madani each had the authority to influence the selection of dental residents, and Hills had final decisional authority over who was selected for the residency program.
Alqsous and Sayegh often identified and selected candidates who were from Jordan or trained at a Jordanian dental school, telling them they would have to pay a “donation” to MetroHealth to be considered. Alqsous and Sayegh directed the candidates to pay the “donation” directly to them, and in some cases, told the candidates a portion of the money would go to Hills.
Alqsous, Sayegh and Al-Madani solicited at least $75,000 in bribes from resident dentist candidate between 2008 and 2014.
In another conspiracy, Al-Madani and Alqsous paid bribes to Hills in exchange for him taking actions to refer Medicaid recipients to private dental clinics owned by Al-Madani and Alqsous instead of MetroHealth. All three took steps to conceal this activity by claiming kickback checks totaling $17,600 written to Hills were for “consultation fees” or “professional fees”.
Hills, Alqsous and Al-Madani also conspired to obstruct justice, instructing people not to cooperate with law enforcement after becoming aware of the federal investigation in 2014.
Hills also made false statements on tax returns, failing to claim approximately $165,751 in unreported income stemming from bribes, kickbacks and other things of value between 2011 and 2013.
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 U.S. Attorneys Om Kakani and Michael L. Collyer following an investigation by the FBI, IRS-CI, Ohio Bureau of Criminal Investigation and the Ohio Office of the Inspector General.
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.
The investigation is ongoing.
Elyria man sentenced to more than four years in prison for mailing what he claimed was anthraxRead the Press Release
An Elyria man was sentenced to more than four years in prison for making threats with a white powdery substance, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Drew D. Manns, 33, was sentenced to 51 months in prison. It will be served consecutively to his state prison sentence stemming from an arson.
Manns previously pleaded guilty to mailing threatening communications and related charges.
Manns sent Summit County Clerks and Prosecutor’s Office letters including a white powdery substance, and identified the substance as anthrax in the body of the accompanying letters, according to court documents.
The Summit County Prosecutor’s Office conducted the investigation. The case is being prosecuted by Assistant United States Attorney Marisa T. Darden.