Northern District of Ohio
Press releases recorded for this federal judicial district.
Oregon man charged with cyberstalking, making interstate threatsRead the Press Release
An Oregon man was charged with cyberstalking and other offenses for making numerous threats to his former co-workers and law enforcement officials.
Michael A. Hagar, 46, was charged with one count of cyberstalking and two counts of interstate threatening communication.
Hagar was employed at a Goodyear store in Salem, Oregon, from 2011 through 2013. He was employed by Eaton in Portland, Oregon, from 2014 through 2015. He was involuntarily terminated from both positions, according to the indictment.
Hager sent numerous threatening e-mails to at least seven former co-workers at Eaton and Goodyear in 2015 and 2016, as well as threatening emails to law enforcement officials in Oregon. The e-mails he sent traveled through Eaton and Goodyear data centers in Northeast Ohio, according to the indictment.
In 2016, Hagar was personally served with a temporary stalking protective order ordering him to stop any contact with an Eaton employee identified as R.G. He was also arrested for trespassing on Goodyear property in Oregon, according to the indictment.
On May 30, 2016, he sent an email to R.G. and Oregon law enforcement officials with the subject line: “I AM GOING TO RUIN EVERYONE OF YOU(R) LIVES,” according to the indictment.
This case is being prosecuted by Assistant U.S. Attorneys Daniel J. Riedl and Om Kakani following an investigation by the FBI.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
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.
Cannon Design to pay $12 million as part of criminal enforcement agreementRead the Press Release
Cannon Design will pay a $12 million penalty, implement a series of corporate reforms and divest itself from a large project in California to resolve the company’s criminal liability for the conduct of more than a dozen employees, including paying bribes and kickbacks to obtain confidential information related to Veterans Affairs construction projects.
As stated in the criminal enforcement agreement, Buffalo-based Cannon has:
- accepted legal responsibility for the criminal conduct of its employees.
- agreed to pay a monetary penalty to the United States of $12 million.
- agreed to fully cooperate with the United States.
- agreed to divest itself of any involvement in the design of the VA West Los Angeles project, which the VA awarded to a joint venture including Cannon.
- made company-wide revisions and enhancements to its compliance program, internal controls, policies and procedure to detect and deter fraud.
William D. Montague, the former director of the Cleveland Veterans Affairs Medical Center, was sentenced earlier this year to nearly five years in prison after being found guilty of 64 counts, including Hobbs Act conspiracy, conspiracy to commit honest services mail fraud, violating the Hobbs Act, money laundering, multiple counts of wire fraud, mail fraud, disclosing public contract information and other charges.
Cannon executive Mark Farmer was sentenced to nearly three years in prison after a federal jury convicted him on 14 counts related to providing things of value to Montague in exchange for confidential information about VA construction projects.
According to court documents:
Montague served as director of the Cleveland VA Medical Center from 1995 through 2010. In 2011, Montague began working as director of the Dayton VA Medical Center.
From January 2010, Montague, Farmer and Cannon conspired to defraud the VA of its right to the honest and faithful service of Montague through bribery and kickbacks and to defraud the VA and other potential VA contractors by means of false and fraudulent pretenses.
Montague secretly used his position as Dayton VA Medical Center director to enrich himself by soliciting and accepting gifts, payments, and other things of value from Cannon in exchange for favorable official actions. He solicited money and a consulting contract from Cannon in exchange for information related to VA contracts and projects, which would benefit Farmer, Cannon and others.
This was done to give Cannon an advantage in obtaining VA contracts and projects. Montague gave false and misleading information to VA employees about his reasons for requesting VA documents and information.
For example, on March 1, 2011, Cannon issued a $20,000 check to Montague. Ten days later, Farmer sent an e-mail to some employees with Montague’s consulting agreement explaining: “His job is to help us bring in more work from the VA, in part by helping us access key decision makers. On March 14, 2011, Farmer sent another e-mail to some employees stating Cannon will end the current “$15 [million VA] IDIQ contract with just slightly over $12M in sales. $3M in fee, therefore, will be left on the table…[O]ne of MONTAGUE’s jobs will be to fill up the bucket by directing task orders toward our contract, Going forward, we have two $15M buckets to fill (Central and Eastern regions). That’s a lot of shoveling to get to $30M…BILL has the relationships to help us maximize the contracts…On the VA ‘major construction’ front here is the list of medical centers and their approximate construction cost in the pipeline: West Los Angeles, CA: $750M; San Francisco, CA: $125M, Reno, NV: $115M, Alameda, CA: $225M. Montague told us about these before they were advertised, which has allowed us to get an early start in developing the team. If we bring him on board, he can help us pull in one or two of these large projects.”
“Companies must never benefit by using public officials to obtain a competitive business advantage,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The FBI will continue to root out corruption at all levels.”
“This meaningful agreement holds the corporation accountable for the conduct of its leadership,” said Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs, Office of Inspector General (VA OIG). “A $12 million penalty along with 90 months of prison time for related case subjects is a strong deterrent against defrauding VA. We will continue to diligently and aggressively pursue fraud, waste, and abuse for the benefit of our nation’s heroes.”
The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon and Paul Flannery following an investigation by the FBI and United States Department of Veterans Affairs-Office of Inspector General.
California man accused of trafficking cocaine into Greater ClevelandRead the Press Release
A federal grand jury issued a four-count indictment charging Justin Roman, 26, of California, with trafficking multiple kilograms of cocaine into the Cleveland area, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.
Law enforcement officials allege Roman distributed approximately three kilograms of cocaine for distribution in the Cleveland area through the mail.
Roman is also charged in the District of New Jersey for similar conduct.
Assistant U.S. Attorney Matt Cronin is prosecuting the case following an investigation by the United States Postal Inspection 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. 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.
Marion drug dealers sentenced to prison for selling fatal mix of heroin and fentanylRead the Press Release
Two Marion men were sentenced to prison for selling a mixture of heroin and fentanyl that resulted in an overdose death last year, law enforcement officials said.
Eric Creagh, 33, was sentenced to more than 15 years in prison while Rashawn D. Thomas, 28, was sentenced to nine years in prison. Both previously pleaded guilty to one count of drug trafficking that resulted in death.
Creagh sold Thomas “blue drop heroin” -- a mixture of heroin and fentanyl that had been dyed blue -- on May 22, 215. Later that day, Thomas sold a portion of the “blue drop heroin” to Christopher Wolford, who used the drug at his home, which ultimately caused him to overdose and die, according to court documents.
“Heroin and fentanyl abuse have been devastating to the community in Marion, as it has to communities throughout Ohio,” U.S. Attorney Carole S. Rendon said. “We will continue to pursue long prison sentences for those who sell this deadly mix, while also continuing with a comprehensive approach focused on prevention, treatment, changing prescribing practices and enforcement.”
“On May 28, 2015 the City of Marion reached out to our federal and state partners asking for assistance with a Blue Drop Heroin overdose epidemic,” Marion Police Chief William Collins said. “Through combined efforts of our local drug task force, MARMET/METRICH, DEA, BCI and the US Attorney’s Office, an unprecedented 14-day investigation took place and resulted the arrests of Eric Creagh and Rashawn Thomas. These individuals were charged at the federal level in hopes that they would receive the kind of prison sentence that would fit the criminal offense, today we see our hopes fulfilled in that they will serve long prison sentences for their crimes against this community. Marion law enforcement will continue to seek harsh prison sentences for those whom seek to destroy our community.”
DEA Special Agent in Charge Timothy J. Plancon said: “DEA and our law enforcement partners have made it a priority to investigate the distribution of drugs that result in death. The efficiency in which this investigation was conducted, taking dangerous drug dealers off of the street, demonstrates the strong level of cooperation among all of our partners. We are focused on bringing to justice those individuals that are responsible for the increasing heroin problem in Ohio and across the United States.”
“I commend the work of the local, state, and federal authorities who worked so aggressively to get the supplier of this so-called ‘blue drop’ heroin off the streets,” said Attorney General DeWine. “Drugs like heroin and fentanyl are devastating lives and tearing families apart every day in this state. Traffickers must be held responsible, and investigators with my office’s Bureau of Criminal Investigation are available to work with local authorities anywhere in Ohio to help make that happen.”
This case was prosecuted by Assistant U.S. Attorneys Michael Freeman and Thomas Weldon following an investigation by the Drug Enforcement Administration, MARMET, the Marion Police Department, the Marion County Sheriff's Office and the Ohio Bureau of Criminal Investigation.
Five indicted for selling heroin or fentanyl that caused Lorain County overdosesRead the Press Release
Five Lorain County men were indicted in federal court for selling heroin and/or fentanyl that resulted in overdoses.
Three of the overdoses were fatal while the users were revived in the other two cases. All five indictments carry sentencing enhancements for selling drugs that resulted in death or serious bodily injury.
Those indicted are: Delante Lunn, 36, of Elyria; Russell Davis, 47, of Lorain; Cecil Shelton, 22, of Elyria; Jesus D. Cruz, 35, of Elyria, and Leon Hale, 35, of Elyria.
The indictments were announced by U.S. Attorney Carole S. Rendon, FBI Special Agent in Charge Stephen D. Anthony, Elyria Police Chief Duane Whitely, Lorain County Prosecutor Dennis Will and Lorain Police Capt. Roger Watkins.
Lunn is charged in a five-count indictment with distributing heroin and fentanyl, including on Feb. 18, when he sold a heroin and fentanyl mixture in Elyria that resulted in a fatal overdose, according to the indictment.
Davis is charged in a two-count indictment with distributing fentanyl and cocaine. Davis sold fentanyl in Lorain on March 7 that resulted in a fatal overdose, according to the indictment.
Shelton is charged in a four-count indictment with distributing heroin, including selling heroin on March 18 in Elyria that resulted in a fatal overdose, according to the indictment.
Cruz is charged in a six-count indictment with distributing fentanyl and heroin, as well as being a felon in possession of firearm. Cruz sold drugs several times in March, including on March 2 in Elyria, which resulted in a fentanyl overdose. He also illegally possessed a .357 revolver despite a prior conviction for heroin trafficking, according to the indictment.
Hale is charged in a four-count indictment with distributing heroin, fentanyl and cocaine. Hale sold heroin and fentanyl on Feb. 21 in Elyria that resulted in an overdose, according to the indictment.
In an unrelated case, Ryan Sumlin, 27, of Akron, was charged in a superseding indictment with selling a mix of heroin and fentanyl that caused a fatal overdose in Akron on March 28, 2015. The U.S. Attorney’s Office has now indicted 16 cases with enhanced sentencing provisions for selling heroin or fentanyl that caused death or serious injury.
“Aggressively targeting dealers who sell heroin and fentanyl that kills people is one of several tools required to turn the tide on the opioid epidemic,” Rendon said. “We need to continue to work to make treatment more available to those who want help, work with our medical community to decrease the availability of opioids, and talk to our children about how dangerous these drugs can be.”
“It is almost a daily occurrence to hear of a death due to heroin or fentanyl,” Anthony said. “Law enforcement will continue to work collaboratively to hold accountable those that bring this poison and destruction to our communities.”
“The entire country is dealing with a surge of overdose deaths as a result of the heroin epidemic,” Whitely said. “Lorain County Ohio is no exception. Lorain County law enforcement agencies have been attacking this epidemic for several years. Selling drugs that result in the someone's death needs to be pursued as a murder. It is no different than killing someone with a gun. Our relationship with the U.S. Attorney's Office has proved to be a winning partnership. By working together, we are able to put these murderers in prison for a long time.”
“The City of Lorain is well aware of the urgent need to combat the heroin and fentanyl crises which plagues our city, and communities throughout this area,” Watkins said. “Today’s indictments are a step in the right direction. We will continue our proactive efforts, while working together with our local, state, and federal partners, to combat this epidemic.”
These cases are being prosecuted by Assistant U.S. Attorneys Robert F. Corts and Vasile Katsaros following investigations by the FBI, Elyria Police Department and Lorain Police Department. The Sumlin case was investigated by the Drug Enforcement Administration and Akron Police Department.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
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.
Ohio inmate sentenced to federal prison for running multi-state drug distribution network from inside prisonRead the Press Release
The leader of a multi-state conspiracy that distributed heroin, cocaine and methamphetamine while he was an inmate inside an Ohio prison was sentenced to more than six years in prison, law enforcement officials said.
Fernando Auces, 52, was sentenced to 78 months in prison by U.S. District Judge James Gwin.
Auces, while an inmate at Allen Correctional Institute in Lima, Ohio, controlled a multi-state drug operation by communicating through a contraband cell phone with others outside the prison to arrange the delivery and sale of heroin, cocaine and methamphetamine, according to court documents.
Between 2010 and 2014, Auces and others arranged for deliveries of large amounts of heroin to Ohio from suppliers in Indiana and Texas. Auces recruited friends and relatives to receive and distribute the heroin, cocaine and methamphetamine to Cleveland, Toledo and elsewhere, according to court documents.
Auces, as part of the conspiracy, agreed with an inmate at the Southern Ohio Correctional Facility in Lucasville, Ohio, to share customers and drug suppliers. Auces arranged for Alexander Gonzales to distribute drugs to various locations throughout Ohio, including Cleveland, Akron/Canton, Dayton and Cincinnati, according to court documents.
“This defendant added more time onto his sentence, and the drug ring he ran from prison has been disrupted,” said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
“Refuge from law enforcement can't be found behind a prison wall,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The Northern Ohio Law Enforcement Task Force will continue to bring to justice drug dealers that distribute pois0n to our streets, no matter where they reside."
“Our collective enforcement efforts in this investigation have effectively shut down an operation that allegedly funneled copious amounts of illegal drugs into the community," Marlon Miller, Special Agent in Charge of HSI Detroit, which covers Michigan and Ohio. "This sentence is the culmination of an extensive multi-agency approach to combating drug trafficking organizations."
This case is being prosecuted by Assistant U.S. Attorneys Vasile C. Katsaros and Christian H. Stickan following an investigation by the Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
Carroll County man sentenced to prison for failing to register as sex offenderRead the Press Release
A Carroll County man was sentenced to prison for failing to register as a sex offender, said U.S. Attorney Carole S. Rendon and U.S. Marshal Peter J. Elliott.
Louis Scott, 45, was sentenced to 30 months in prison by U.S. District Judge Donald C. Nugent.
Scott was convicted in Tulsa County District Court in May 2011 of second-degree rape. As a result of that conviction he was subject to the sex offender registration requirements of the Adam Walsh Child Protection and Safety Act, according to court documents.
In January 2016 U.S. Marshals Service investigators learned that Scott was no longer at his registered address in Oklahoma and was residing in the 100 block of 12th St. NW, in Carrollton, Ohio, according to court documents.
He was arrested by the US Marshals Northern Ohio Violent Fugitive Task Force on January 15th, 2016.
“Too often sex offenders believe they can avoid their requirements to register by moving from state to state and living under the radar,” said Peter J. Elliott, U.S. Marshal for the Northern District of Ohio. “The combined efforts of the Carroll County Sheriff’s Office, the U.S. Marshals Service and Oklahoma law enforcement made this arrest possible.”
This case was prosecuted by Assistant U.S. Attorney David M. Toepfer following an investigation by the U.S. Marshal Service and the Carroll County Sheriff’s Office.
U.S. Attorney's Office and City of Cleveland seek applicants to serve on Community Police CommissionRead the Press Release
The City of Cleveland and the United States Attorney’s Office for the Northern District of Ohio are seeking qualified applicants to serve on the Cleveland Community Police Commission (CPC).
The CPC is a 13-person body created as part of the agreement between the City and the Justice Department to foster police and community communication and understanding and to provide input on reform. It is made up of 10 civilian representatives and one representative from each of the three police unions: the Cleveland Police Patrolmen's Association, the Fraternal Order of Police and the Black Shield.
The appointed members include representatives of faith-based organizations, civil rights advocates, business/philanthropic groups, organizations representing communities of color, advocacy organizations, youth or student organizations, academia and individuals with expertise in the challenges facing people with mental illness or the homeless.
Commission members are picked by an independent Selection Panel appointed by Mayor Frank G. Jackson, in consultation with the U.S. Attorney. The Selection Panel will recommend new CPC members, who will be appointed by the Mayor. The members serve in a volunteer capacity. Applicants to the CPC must live or work in the City of Cleveland.
Applications are due by noon September 6, 2016. For more information about how to apply to become a member of the Cleveland Community Police Commission, go to: http://cpcapplication.org/.
For more information about the CPC’s work, go to: http://www.clecpc.org/
Lakewood man sentenced to jail, ordered to pay nearly $1.8 million for tax fraud involving yacht and luxury travelRead the Press Release
A Lakewood man was sentenced to a year in custody and ordered to pay nearly $1.8 million restitution and fines for taking improper write-offs and not reporting taxable income, said Carole S. Rendon, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Thomas G. Klocker, 47, was previously found guilty of four counts of tax evasion. U.S. District Judge James Gwin sentenced Klocker to six months incarceration followed by six months of home confinement. Klocker was fined $500,000 and has paid nearly $1.3 million in restitution to the IRS.
“This defendant tried to take the government on a ride by claiming costs associated with cruises on his luxury yacht as business expenses,” Rendon said. “Now he has to pay up, both financially and with his freedom.”
“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."
Klocker was the sole shareholder and operator of All Metal Sales (AMS) in Westlake. He also operated TT Charter Leasing, which was in the business of chartering the luxury yacht “Tommy Time”, according to court documents.
Klocker diverted corporate funds from AMS for his own use to benefit his personal lifestyle and avoid personal income liabilities between 2007 and 2010. For example, Klocker diverted funds from AMS to construct a waterfront residence in Lakewood and to maintain his 68’ Sunseeker yacht, as well as to pay for luxury travel and to make cash withdrawals. He reported substantial business losses arising from the operating costs and expenses arising from the personal use of the TT Charter Leasing yacht, according to court documents.
He also misrepresented his personal expenses entered into AMS’ books and records by falsely describing them as legitimate business expenses. Klocker also provided false information to his tax-return preparers about expenses he described as business-related which were, in fact, personal in nature – including luxury travel with his family, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Robert J. Patton and Suzana Koch following an investigation by the Internal Revenue Service – Criminal Investigations, with assistance from the Federal Bureau of Investigation – Cleveland Field Office.
Roaming Shores man sentenced to 21 years in prison for drug and firearms crimesRead the Press Release
A Roaming Shores man was sentenced to more than 21 years in prison for federal drug and firearm crimes, law enforcement officials said.
James E. Brooks, 41, was previously found guilty in U.S. District Court on six counts, including distribution of heroin and crack cocaine, possession a firearm during a drug trafficking crime and being a felon in possession of firearms and ammunition.
Brooks still has charges pending in state court related to the death of Alesha Bell.
Brooks distributed crack cocaine and heroin in August 2015, and possessed a firearm during those crimes, according to court documents.
On August 20, 2015, Brooks possessed a Walther, model P22, .22 Caliber Pistol; a Winchester, model 50, 12 gauge shotgun; and a Winchester, model 120, 12 gauge shotgun, despite previous felony convictions including drug abuse, burglary, aggravated robbery with a firearm specification, felonious assault, escape, and felonious assault with a firearm specification, all in the Trumbull County Court of Common Pleas, according to court documents.
“This defendant has spent most of his adult life terrorizing people,” U.S. Attorney Carole Rendon said. “This long prison sentence is appropriate given this defendant’s actions.”
“I would like to recognize the dedicated work of the TAG Task Force, the Ashtabula County Sheriff’s Office, and the Ashtabula County Prosecutor’s Office,” Acting ATF Special Agent in Charge Brad Earman said. “Cooperation with our law enforcement partners multiplies our efforts to remove violent criminals from the streets and make our communities safer.”
“I very much appreciate the cooperative partnership that exists between my office and the US Attorney’s Office, along with the various state and federal law enforcement agencies,” said Ashtabula County Prosecutor Nicholas M. Iarocci. “This case is a perfect example of such partnership, as the charges were divided and coordinated in such a way so as to maximize the amount of incarceration which Mr. Brooks could receive. A number of serious charges remain pending in the Ashtabula County Common Pleas Court against Mr. Brooks involving the death of Alesha Bell, including involuntary manslaughter, human trafficking, kidnapping, tampering with evidence, compelling prostitution and gross abuse of corpse, along with several drug possession charges.”
This case is being prosecuted by Assistant U.S. Attorney Jason M. Katz following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ashtabula County Sheriff’s Office, the Warren Police Department, the Ohio State Highway Patrol, Ohio BCI&I and the TAG Law Enforcement Task Force.
Former Canton resident sentenced to 13 years in prison for tax fraudRead the Press Release
Two people were sentenced to prison for their roles operating a $4.8 million fraud conspiracy involving nearly 1,000 people who resided in Northeast Ohio, said U.S. Attorney Carole S. Rendon and Kathy Enstrom, IRS-Criminal Investigation Special Agent in Charge.
Allen D. Miles, 58, of Little Rock, Arkansas, formerly of Canton, was sentenced to more than 13 years in prison. He previously was found guilty of multiple counts, including conspiracy to commit wire fraud and aggravated identity theft.
Zinara M. Highsmith, 37, of Fayetteville, Georgia, was sentenced to 42 months in prison. She previously pleaded guilty to one count of conspiracy to commit wire fraud and one count of wire fraud.
“These defendants’ preyed on faith – people’s faith in their ministers and faith in their government,” Rendon said. “These defendants betrayed that faith to get rich and now will be held accountable.”
“Today’s sentencings should send a clear message to would-be criminals -- you will be caught and you will be punished,” Enstrom said. “Identity theft is a contemptible modern-day scourge and we will continue to pursue criminals who prey on innocent victims.”
Highsmith filed approximately 2,750 false tax returns containing false refund claims of more than $4.8 million. Approximately 964 false claims were made on behalf of people living in Northeast Ohio, according to court documents.
Highsmith formed the Atlanta-based tax-preparation business WE XL LLC in 2010. From March 2011 through July 2011, Highsmith partnered with Miles in a scheme to file false tax returns. Miles’ role was to recruit and obtain personal identification information from claimants and to provide that information to Highsmith, who was responsible for the preparation of the false returns. Miles did this in large part by inducing other ministers and church leaders in various states, including Ohio, to solicit members of their congregations to apply for benefits under the so-called government stimulus program, according to court documents.
Some of the claimants were residents of Northeast Ohio who provided their personal identification information to a pastor in Canton and to a relative of the Canton pastor. They, in turn, forwarded the information to Miles, according to court documents.
As instructed by Miles, the claimants were told they could receive their “stimulus” payment by direct deposit or on a debit card. Miles told pastors to request a $50 “donation” from each claimant, according to court documents.
Miles forwarded the claimants’ personal identification information to Highsmith to use in preparing false tax returns. Highsmith never had any contact with a claimant or any of the other pastors used by Miles to recruit or enlist claimants, according to court documents.
Highsmith instructed associates, including Ve Sayavong, of Jonesboro, Georgia, how to prepare false income tax returns using Turbo Tax software, which they did by reporting false occupations and wage income, and by falsely claiming a variety of tax credits, including the AOC Education Credit, the Making Work Pay Credit and the Earned Income Credit, according to the court documents.
All of the returns requested that $125 be deposited into a bank account controlled by Miles and $275 be deposited into a bank account controlled by Highsmith, according to the information.
Based on the false claims, the IRS issued refunds totaling more than $3.9 million, with more than $500,000 from those refunds going to bank accounts controlled by Highsmith, according to court documents.
Sayavong was previously sentenced to nearly three years in prison.
This case is being prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Carmen Henderson following an investigation by the Internal Revenue Service.
Walbridge man accused of embezzling from labor unionRead the Press Release
A former labor union official was indicted on charges that he embezzled from the union, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Guy Gokey, 65, of Walbridge, Ohio, was charged in a two-count indictment with one count of embezzlement from a labor organization and one count of making a false statement on a labor organization report.
Gokey served as financial secretary for Glass Molders and Plastics AFL-CIO, Local 59, from 1986 through 2014. He embezzled approximately $14,074 from the union, 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 Department of Labor, Office of Labor-Management Standards, in Cleveland, Ohio. The case is being handled by Assistant United States 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.
North Carolina man charged with providing support to ISILRead the Press Release
A Charlotte, North Carolina, man was arrested this morning on a federal complaint charging him with conspiring to provide material support to the Islamic State of Iraq and Levant (ISIL), a designated foreign terrorist organization.
Erick Jamal Hendricks, 35, tried to recruit people to train together and conduct terrorist attacks in the United States on behalf of ISIL, according to a criminal complaint unsealed today in U.S. District Court in the Northern District of Ohio.
The arrest was announced by Assistant Attorney General for National Security John P. Carlin, 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 Office.
According to the complaint, in June 2015, an individual (CW-1) was arrested in the Northern District of Ohio after attempting to purchase an AK-47 assault rifle and ammunition from an undercover law enforcement officer. CW-1 had pledged allegiance to ISIL in social media and made statements expressing interest in conducting attacks in the United States.
Hendricks had contacted CW-1 over social media to recruit him in the spring of 2015, according to the complaint. Hendricks allegedly told CW-1 that he “needed people” and wanted to meet in person; that there were several “brothers” located in Texas and Mexico; that he was attempting to “get brothers to meet face to face;” and that he wanted “to get brothers to train together.”
According to the complaint, CW-1 said that Hendricks tested his religious knowledge and commitment, inquiring about his willingness to commit “jihad,” to die as a “martyr” and his desire to enter “jannah” (paradise). CW-1 understood these statements to mean that Hendricks was recruiting people to train together for the purpose of conducting a terrorist attack in the U.S. and to see if CW-1 was suitable for recruitment, according to the allegations. CW-1 allegedly believed that Hendricks and the “brothers in Texas and Mexico” may have been responsible for a thwarted terrorist attack in Garland, Texas, on May 3, 2015, and therefore CW-1 decided to stay away from social media for a period following the attack to minimize detection by law enforcement.
Hendricks also allegedly communicated over social media with several other people, including an undercover FBI employee (UCE-1). According to the complaint, on April 16, 2015, Hendricks instructed UCE-1 to download the document “GPS for the Ghuraba in the U.S.”, which included a section entitled “Final Advice” which advocated that “brothers and sisters” should not allow themselves to go to jail. This section also allegedly encouraged Muslims to die as a “Shaheed” (martyr), to “Boobie trap your homes,” to “lay in wait for them” and to “never leave your home without your AK-47 or M16.” According to the complaint, Hendricks also directed UCE-1 to communicate online with other people and stated “It’s hard to sift through brothers;” “Allah chooses only the few;” and “Everyday I do this day in and day out.”
Hendricks allegedly told another person that his goal was to create a sleeper cell to be trained and housed at a secure compound that would conduct attacks in the United States. He mentioned that potential targets included military members whose information had been released by ISIL and the woman who organized the “Draw Prophet Mohammad contest,” and he claimed to have 10 members signed up for his group, according to allegations in the complaint.
On April 23, 2015, Hendricks allegedly used social media to contact Elton Simpson, who, along with Nadir Hamid Soofi, was inspired by ISIL and launched the attack on the “First Annual Muhammad Art Exhibit and Contest” in Garland. Simpson and Soofi opened fire, wounding a security guard, before Garland police returned fire and killed both Simpson and Soofi. According to the complaint, Hendricks also connected UCE-1 with Simpson via social media; communicated with UCE-1 about the contest in Garland; and directed UCE-1 to go to the contest. Hendricks allegedly said: “If you see that pig (meaning the organizer of the contest) make your ‘voice’ heard against her.” According to the complaint, he also asked UCE-1 a series of questions related to security at the event, including: “How big is the gathering?” “How many ppl?” “How many police/agents?” “Do you see feds there?’ “Do you see snipers?” and “How many media?” Shortly thereafter, Simpson and Soofi committed the attack on the cartoon drawing contest.
A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Hendricks faces a statutory maximum sentence of 15 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI’s offices in Cleveland; Columbia, South Carolina; Baltimore; and Charlotte, North Carolina, with assistance from the Justice Department’s National Security Division and the U.S. Attorney’s Offices in the Northern District of Ohio, District of Maryland, District of South Carolina and the Western District of North Carolina.
North Carolina Man Charged with Conspiring to Provide Material Support to ISILRead the Press Release
A Charlotte, North Carolina, man was arrested this morning on a federal complaint charging him with conspiring to provide material support to the Islamic State of Iraq and Levant (ISIL), a designated foreign terrorist organization.
Erick Jamal Hendricks, 35, tried to recruit people to train together and conduct terrorist attacks in the United States on behalf of ISIL, according to a criminal complaint unsealed today in U.S. District Court in the Northern District of Ohio.
The arrest was announced by Assistant Attorney General for National Security John P. Carlin, 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 Office.
According to the complaint, in June 2015, an individual (CW-1) was arrested in the Northern District of Ohio after attempting to purchase an AK-47 assault rifle and ammunition from an undercover law enforcement officer. CW-1 had pledged allegiance to ISIL in social media and made statements expressing interest in conducting attacks in the United States.
Hendricks had contacted CW-1 over social media to recruit him in the spring of 2015, according to the complaint. Hendricks allegedly told CW-1 that he “needed people” and wanted to meet in person; that there were several “brothers” located in Texas and Mexico; that he was attempting to “get brothers to meet face to face;” and that he wanted “to get brothers to train together.”
According to the complaint, CW-1 said that Hendricks tested his religious knowledge and commitment, inquiring about his willingness to commit “jihad,” to die as a “martyr” and his desire to enter “jannah” (paradise). CW-1 understood these statements to mean that Hendricks was recruiting people to train together for the purpose of conducting a terrorist attack in the U.S. and to see if CW-1 was suitable for recruitment, according to the allegations. CW-1 allegedly believed that Hendricks and the “brothers in Texas and Mexico” may have been responsible for a thwarted terrorist attack in Garland, Texas, on May 3, 2015, and therefore CW-1 decided to stay away from social media for a period following the attack to minimize detection by law enforcement.
Hendricks also allegedly communicated over social media with several other people, including an undercover FBI employee (UCE-1). According to the complaint, on April 16, 2015, Hendricks instructed UCE-1 to download the document “GPS for the Ghuraba in the U.S.”, which included a section entitled “Final Advice” which advocated that “brothers and sisters” should not allow themselves to go to jail. This section also allegedly encouraged Muslims to die as a “Shaheed” (martyr), to “Boobie trap your homes,” to “lay in wait for them” and to “never leave your home without your AK-47 or M16.” According to the complaint, Hendricks also directed UCE-1 to communicate online with other people and stated “It’s hard to sift through brothers;” “Allah chooses only the few;” and “Everyday I do this day in and day out.”
Hendricks allegedly told another person that his goal was to create a sleeper cell to be trained and housed at a secure compound that would conduct attacks in the United States. He mentioned that potential targets included military members whose information had been released by ISIL and the woman who organized the “Draw Prophet Mohammad contest,” and he claimed to have 10 members signed up for his group, according to allegations in the complaint.
On April 23, 2015, Hendricks allegedly used social media to contact Elton Simpson, who, along with Nadir Hamid Soofi, was inspired by ISIL and launched the attack on the “First Annual Muhammad Art Exhibit and Contest” in Garland. Simpson and Soofi opened fire, wounding a security guard, before Garland police returned fire and killed both Simpson and Soofi. According to the complaint, Hendricks also connected UCE-1 with Simpson via social media; communicated with UCE-1 about the contest in Garland; and directed UCE-1 to go to the contest. Hendricks allegedly said: “If you see that pig (meaning the organizer of the contest) make your ‘voice’ heard against her.” According to the complaint, he also asked UCE-1 a series of questions related to security at the event, including: “How big is the gathering?” “How many ppl?” “How many police/agents?” “Do you see feds there?’ “Do you see snipers?” and “How many media?” Shortly thereafter, Simpson and Soofi committed the attack on the cartoon drawing contest.
A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Hendricks faces a statutory maximum sentence of 15 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI’s offices in Cleveland; Columbia, South Carolina; Baltimore; and Charlotte, North Carolina, with assistance from the Justice Department’s National Security Division and the U.S. Attorney’s Offices in the Northern District of Ohio, District of Maryland, District of South Carolina and the Western District of North Carolina.
Wisconsin man charged with fraud and obstruction after falsely claiming to be Navy SEAL wounded four times in VietnamRead the Press Release
A federal grand jury returned a four-count indictment charging a Wisconsin man for crimes related to his false claims that he was a Navy SEAL wounded four times in Vietnam, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Kenneth E. Jozwiak, 67, of Kenosha, Wisconsin, was charged with unlawfully exhibiting a military discharge certificate, theft of government money, making false statements to federal agents, and attempting to obstruct an official proceeding.
“This defendant’s lies about his service are an affront to those who saw combat and those wounded fighting on behalf of our nation,” Rendon said. “This defendant did neither, and falsely inflated his service record in an effort to get additional benefits.”
“This indictment reflects the VA OIG’s commitment to vigorously pursue those individuals that falsify military service records and defraud the VA,” said Gavin McClaren, Resident Agent in Charge of the Department of Veterans Affairs Office of Inspector General’s Cleveland office.
Jozwiak on September 4, 2014, exhibited a DD-214 (military discharge certificate) that claimed, in part, that Jozwiak was a highly decorated Vietnam War veteran, that he was a four-time recipient of the Purple Heart, and that he was a Navy SEAL -- all entries Jozwiak knew were totally false, according to the indictment.
Additionally, Jozwiak defrauded the Department of Veterans Affairs of $2,289 through veteran’s entitlements he received between August and December 2014. In January 2015, Jozwiak made several false statements to federal agents about his fraudulent activities and his military service, and that he attempted to obstruct an official proceeding by tampering with a material witness, according to the indictment.
If convicted, the sentence in this case will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Benedict S. Gullo. The case was investigated by the Department of Veterans Affairs Office of Inspector General—Criminal Investigative Division.
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 men indicted for beating African-American stranger they saw on the streetRead the Press Release
A federal grand jury returned a one-count indictment charging Charles Butler, 33, and Robert Paschalis, 25, both of Toledo, with a federal hate crime today for beating an African-American stranger they saw on the street.
The indictment was announced by Principal Deputy Assistant Attorney General for the Civil Rights Division Vanita Gupta, U.S. Attorney Carole S. Rendon of the Northern District of Ohio, Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division, Toledo Police Chief George Kral and Lucas County Prosecutor Julie Bates.
The men are accused of beating the victim, A.W., because he is black. On May 18, 2016, Butler and Paschalis drove past 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, according to court documents.
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 to Facebook that the attack was “in the name of the White Race,” according to court documents.
“These defendants launched an unprovoked attack on an African-American man based solely on his race,” Rendon said. “There is no place for racial violence in our society and these two men will be held accountable.”
“These individuals engaged in a violent assault against another person based on his race and now will be held accountable,” Anthony said. “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.”
Kral said: “The Toledo Police Department is committed to protecting all citizens from those who chose to pray on them. Whenever a crime is motivated simply because of the victim’s race it makes the crime all the worse. I commend the United States Attorney’s Office for the charging of this person as they see fit. I want to let the citizens of Toledo know that we will work tirelessly to protect their interest at the local, state and federal level.”
An indictment is only a charge and the defendants are presumed innocent unless proven guilty.
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 following an investigation by the FBI’s Toledo Resident Agency, in cooperation with Toledo Police Department and Lucas County Prosecutor’s Office.
Reggie Rucker sentenced to prison for stealing donations and using the money to pay gambling debts, personal expensesRead the Press Release
Former Cleveland Browns star Reggie Rucker was sentenced to nearly two years in prison today for stealing more than $110,000 in charitable donations to anti-violence groups he led and using the money to pay his gambling debts and personal expenses, law enforcement officials said.
Rucker, 68, of Warrensville Heights, pleaded guilty to earlier this year to one count of one count of wire fraud and one count of making false statements to law enforcement.
U.S. District Judge Dan Polster ordered Rucker to pay $110,841 in restitution and sentenced Rucker to 21 months in prison.
“Mr. Rucker treated a non-profit bank account like his personal slush fund and stole more than $110,000 in charitable donations intended to keep the streets of Cleveland safe,” said U.S. Attorney Carole S. Rendon. “The victims in this case are the employees who did not get paid while Rucker spent their paychecks, the business leaders seduced with poignant guilt trips about civic responsibility and the at-risk youths forced to watch their potential role model revealed as a fraud.”
“Mr. Rucker used his position of trust to help fund his gambling habits and personal expenses, and ultimately, he betrayed those that supported his work in the community,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The FBI will continue to work with our partners to identify and hold accountable those who chose to commit such fraud.”
Rucker played wide receiver for the Cleveland Browns from 1975 through 1981, then worked as a broadcaster, stockbroker and financial analyst. Rucker served as executive director of Amer-I-Can Cleveland (Amer-I-Can), a nonprofit organization located in Shaker Heights. He also served as president of the Cleveland Peacemakers Alliance (CPA), a collaboration of community organizations that employed outreach workers to resolve conflicts in Cleveland. Rucker solicited charitable contributions and deposited them into Amer-I-Can’s bank account, according to court documents.
From 2011 through February 11, 2015, Rucker diverted funds intended to support Amer-I-Can and CPA for his personal use and in excess of any compensation he was entitled to receive. Rucker wrote checks to himself and made withdrawals from the Amer-I-Can bank account in amounts and frequencies unrelated to the work he performed, but rather dictated by his own personal financial needs, including to pay his mortgage, entertainment, meals, travel, groceries, and dry cleaning, according to court documents.
In furtherance of his scheme, Rucker falsely told current and prospective donors that Amer-I-Can had an independent board of directors to provide oversight when it did not. Rucker also filed documents under the penalties of perjury with the Internal Revenue Service that significantly understated the amount of money he took from the Amer-I-Can bank account. He also falsely claimed to certain actual and prospective donors, “I do not have a salary with Amer-I-Can,” and “We don’t have any contracts that pay me…”, according to court documents.
Rucker withdrew approximately $48,000 at casino ATMs in Tampa, Las Vegas, and Cleveland, from the Amer-I-Can bank account from 2011 to 2015, including over $35,000 in 2014 alone. He also paid multiple gambling debts he incurred at a Las Vegas casino totaling $65,000 using money donated to Amer-I-Can and CPA for charitable purposes, according to court documents.
In January 2013, when an employee of a Cleveland-area foundation (identified in the charges as Foundation 1) informed Rucker that “The Board (of Foundation 1) has awarded $150,000…for Peacemakers Alliance. Congrats!!!”, Rucker forwarded the email to a Las Vegas casino that he owed $20,000, stating “this is my non profit and they were a little behind getting me my money. I will not actually have this in my hands for 10 days, maybe 14 . . . I like to keep communication open so that I don’t get into any trouble. Can they work with me on this?” On March 5, 2013, Amer-I-Can received $58,751.52 of Foundation 1’s charitable funds, and on March 12, 2013, Rucker wrote a check for $20,000, funded in part by Foundation 1’s donation to Amer-I-Can, to the Las Vegas Casino to pay his gambling debt, according to court documents.
In January 2014, after receiving $47,500 from a donor identified in the information as Foundation 2, Rucker wrote himself two checks totaling $40,000 from the Amer-I-Can bank account, and used a portion of this money to pay an outstanding gambling debt of $25,000 to a Las Vegas casino, according to court documents.
In September 2014, Rucker incurred a $20,000 debt at a Las Vegas casino. Between November 18 and December 1, 2014, Rucker wrote himself checks totaling approximately $21,200 from the Amer-I-Can bank account and paid the Las Vegas casino $15,000 of his debt. In January 2015, after Amer-I-Can received $47,500 from Foundation 2, Rucker wrote himself a check for $10,000 and paid the remaining $5,000 he owed the Las Vegas casino, according to court documents.
Rucker repeatedly solicited grants and donations from foundations, corporations and executives, but failed to disclose his diversion of charitable funds. For example, on November 19, 2014, Amer-I-Can received $10,000 from an entity identified as Foundation 4. The next day, Rucker wrote himself a check for $10,000, but later submitted a report to Foundation 4 that stated: “We appreciated the bridge support granted to us by [Foundation 4], it was helpful in being able to assist high risk and gang affiliated youth. The continued support of [Foundation 4] will be instrumental…,” according to court documents.
Rucker also repeatedly cited CPA outreach workers’ lack of pay to justify his requests for additional funds, but did not disclose his personal use of charitable funds. For example, Rucker solicited funds from Foundation 1, which provided approximately $2.45 million to CPA between 2011 and 2015, by claiming that CPA workers “believe they are being disrespected and taken advantage of . . . I can’t hold them together much longer. We have come too far, put too much into this . . . None of us has money!”, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Adam Hollingsworth following an investigation by the Federal Bureau of Investigation.
Marion man charged with bank robberyRead the Press Release
An indictment was filed charging Ronald R. Myles, Jr., 34, of Marion, for the June 17 robbery of the Commercial Savings Bank branch in Marion.
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's Marion office. The case is being handled by Assistant United States Attorney Tracey Ballard Tangeman.
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.
Mansfield man faces child pornography indictmentRead the Press Release
Lee D. Switzer, 25, of Mansfield, 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.
The indictment charges that from on or about February 20, 2016, through on or about April 17, 2016, Switzer 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. The indictment also charges that on July 6, 2016, Switzer possessed a computer which contained child pornography.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Mansfield and Canton Offices 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.
Bedford man and California man indicted for distributing three kilograms of fentanylRead the Press Release
A Bedford man was indicted for possessing more than six pounds of fentanyl, as well as illegally having firearms, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Norman L. Hunter, 43, is accused of distributing more than three kilograms of fetanyl as well as illegally possessing five firearms, despite a previous felony conviction.
Matthew A. Martin, 31, of San Diego, is also named in the three-count superseding indictment, accused of distributing more than three kilograms of fentanyl.
"Fentanyl is killing hundreds of people in our community," Rendon said. "It's vital that we target people who sell this drug while also working to reduce demand and getting help for those who need it."
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 offenses, and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the Drug Enforcement Administration.
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.
Canfield man indicted for being a felon in possession of a firearmRead the Press Release
A federal grand jury turned a one-count indictment charging John T. Dellick, 22, of Canfield, with being a felon in possession of a firearm and ammunition, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Dellick was taken into custody this morning.
Dellick possessed an Armi Galesi, model Brevetta, .25 caliber pistol, and ammunition, on Jan. 3, despite a previous convicting for aggravated assault in the Court of Common Pleas, Mahoning County, in 2015, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Boardman Police Department. 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.
Two Toledo men charged with a federal hate crime for beating African-American stranger they saw on the streetRead the Press Release
Charles Butler, 33, and Robert Paschalis, 25, both of Toledo, were charged with a federal hate crime today for beating an African-American stranger they saw on the street.
The charges were announced by Principal Deputy Assistant Attorney General for the Civil Rights Division Vanita Gupta, Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division, U.S. Attorney Carole S. Rendon of the Northern District of Ohio, Toledo Police Chief George Kral and Lucas County Prosecutor Julie Bates.
The men were charged by complaint with beating the victim, A.W., because he is black. According to the complaint, on May 18, 2016, Butler and Paschalis drove past 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.
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 to Facebook that the attack was “in the name of the White Race.”
“These individuals engaged in a violent assault against another person based on his race and now will be held accountable,” Anthony said. “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.”
“These defendants launched an unprovoked attack on an African-American man based solely on his race,” Rendon said. “There is no place for racial violence in our society and these two men will be held accountable.”
Kral said: “The Toledo Police Department is committed to protecting all citizens from those who chose to pray on them. Whenever a crime is motivated simply because of the victim’s race it makes the crime all the worse. I commend the United States Attorney’s Office for the charging of this person as they see fit. I want to let the citizens of Toledo know that we will work tirelessly to protect their interest at the local, state and federal level.”
A complaint is merely an accusation and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the FBI Cleveland Division’s Toledo Resident Agency, in cooperation with Toledo Police Department and 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.
Two Ohio Men Charged with Hate Crime for Beating African-American ManRead the Press Release
Charles Butler, 33, and Robert Paschalis, 25, both of Toledo, Ohio, were charged with a federal hate crime today for beating an African-American stranger they saw on the street.
The charges were announced by Principal Deputy Assistant Attorney General of the Civil Rights Division Vanita Gupta, 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.
The men were charged by complaint with beating the victim, A.W., because he is black. According to the complaint, on May 18, 2016, Butler and Paschalis drove past 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.
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 to Facebook that the attack was “in the name of the White Race.”
A complaint is merely an accusation and the 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 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.
Butler Complaint
Youngstown man indicted on firearms chargeRead the Press Release
A federal grand jury returned a one-count indictment charging Van S. Lightning, 26, of Youngstown, with being a felon in possession of a firearm and ammunition, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on or about May 28, 2016, Lightning possessed a Springfield, model XD-40, .40 caliber pistol, and ammunition, after having been previously convicted of RICO violation in the U.S. District Court, Northern District of Ohio, in 2012.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Youngstown Police Department. 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.
Youngstown man faces fentanyl, heroin and firearms charges, accused of operating drug houseRead the Press Release
A Youngstown man was named in a five-count indictment, charged with federal narcotics and firearms violations, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Phillip M. Lemon, II, 28, of possessed with intent to distribute more than 100 grams of heroin in December 2015. He also possessed with intent to distribute fentanyl and maintained a premises on McHenry Street in Youngstown for the purpose of distributing heroin. Lemon also possessed two RG, model RG23, .22 caliber revolvers and ammunition despite after having been previously convicted of conspiracy to possess with intent to distribute heroin. He also possessed the firearms in furtherance of a drug trafficking crime, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Youngstown Police Department. 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
Toledo man charged for cocaine distributionRead the Press Release
A criminal information was filed against Fortino Barajas Castaneda, 35, of Toledo, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The charges relate to possession with intent to distribute 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 Department of Homeland Security, Immigration and Customs Enforcement, in Detroit. The case is being handled by Assistant United States Attorney Thomas P. Weldon and Michael J. Freeman.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland woman indicted for bank robberies in Highland Heights, Euclid and BedfordRead the Press Release
A Cleveland woman was indicted for her role in bank robberies in Highland Heights, Bedford and Euclid, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Te’aira Perry, 26, was indicted on three counts of bank robbery.
The indictment alleges that Perry and others aided and abetted one another in robbing a U.S. Bank in Highland Heights on June 26, 2013, of approximately $13,400, and attempting to rob a Charter One Bank in Bedford on August 21, 2013. It further alleges that Perry and four men – Germain D. Davis, Jr., Julian Anderson, Shawn Caldwell, and Dejuan Brown – aided and abetted one another in robbing a PNC Bank in Euclid, on January 24, 2014, of approximately $39,900.
Davis, Anderson, Caldwell, and Brown all pleaded guilty to this robbery in 2014.
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 offenses, and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation, the Highland Heights Police Department, the Bedford Police Department and the Euclid 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 woman indicted for Social Security fraudRead the Press Release
A federal grand jury returned a one-count indictment charging Jacqueline Davis, 50, of Cleveland, with theft of government funds, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that Davis stole $53,650.90 in Social Security benefits by intentionally concealing and failing to report to the Social Security Administration her return to work and continued employment. She did so knowing that it would affect her entitlement to Social Security disability benefits.
Special Assistant United States Attorney Lisa J. Sanniti is prosecuting the case following an investigation by the SSA Office of Inspector General.
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.
Cleveland sex offender faces child pornography chargesRead the Press Release
A grand jury returned a two-count indictment charging Adam Libbey-Tipton, 29, of Cleveland, with one count of accessing with intent to view visual depictions of minors engaged in sexually explicit conduct; and one count of possessing visual depictions of minors engaged in sexually explicit conduct, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Libbey-Tipton is a registered sex offender, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian McDonough following an investigation by the Cleveland Office of the Federal Bureau of Investigation.
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.
Bedford man indicted on federal drug and firearms chargesRead the Press Release
A Bedford man was indicted on drug and firearms charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Norman L. Hunter, 43, is accused of distributing more than 500 grams of cocaine as well as illegally possessing five firearms, despite a previous felony conviction.
Matthew A. Martin, 31, of San Diego, is also named in the three-count indictment, accused of distributing more than 500 grams of cocaine.
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 offenses, and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the Drug Enforcement Administration.
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.
Westlake man charged with fraudRead the Press Release
A Westlake man was charged with embezzling from his former employer, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Tarun Gupta, 45, is charged with wire fraud. The criminal information alleges that from on or about May 16, 2012 through on or about December 22, 2014, Gupta stole $382,900 from Charak Center for Health and Wellness, where he had been employed as a the business manager from 2009 through 2013.
The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following an investigation by the U.S. Secret Service and the Garfield Heights Police Department.
If convicted, the defendant's sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three from Northeast Ohio plead guilty for their roles in $17 million investment fraudRead the Press Release
Three men from Northeast Ohio pleaded guilty this week for their roles in a conspiracy to defraud about 70 investors out of approximately $17 million, law enforcement officials said.
Thomas Abdallah, 52, of Brunswick, pleaded guilty this week to plead to one count of conspiracy to commit wire fraud and securities fraud and one count of money laundering.
Mark M. George, 59, of Independence pleaded guilty to one count of conspiracy to commit wire fraud and securities fraud.
Jeffrey L. Gainer, 52, of Akron, pleaded guilty to one count of sale of unregistered securities.
All three are scheduled to be sentenced Oct. 4
The guilty pleas was announced by Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office, and Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigations, Cincinnati Field Office.
Kenneth A. Grant, Jerry A. Cicolani and Kelly C. Hood previously pleaded guilty to crimes related to this fraud.
Abdallah and Grant owned and operated KGTA Petroleum, Ltd. They and others marketed KGTA as a company that earned profits from buying and selling crude oil and refined fuel products. They represented to investors that they had relationships with third-party purchasers and investor funds would be used to purchase fuel products at a discount and then resold at substantial profit, according to court documents.
KGTA issued investment agreements and promissory notes which offered guaranteed monthly payments up to five percent per month or annual payments of approximately 60 percent per year, according to the information. The defendants never filed documentation about KGTA with the Securities and Exchange Commission, according to court documents.
Together, they obtained approximately $31 million from about 70 investors between 2010 and 2014 through false and fraudulent pretenses. They knew KGTA did not have agreements in place to sell oil and fuel, and that investors would not earn 5 percent per month on their investments, according to court documents.
The defendants used investor money for personal expenditures and luxury items including a Mercedes Benz, a boat and mortgage payments on high-end residential property. As a result of the conspiracy, the defendants defrauded the investors out of approximately $17 million, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys M. Kendra Klump and Mark S. Bennett following an investigation by the Federal Bureau of Investigation and Internal Revenue Service—Criminal Investigations.
Carole S. Rendon sworn in as U.S. Attorney for the Northern District of OhioRead the Press Release
Carole S. Rendon was sworn in as United States Attorney for the Northern District of Ohio this morning.
In that role, she is the chief federal law enforcement officer in Ohio’s northern 40 counties. The office is tasked with enforcing a wide range of criminal and civil statutes, including the prosecution of crimes including public corruption, civil rights, drug trafficking, fraud, human trafficking, firearms crimes and other violations.
“I am humbled by this honor,” Rendon said. “I look forward to continuing to work on our region’s most pressing challenges, including the opioid epidemic and police/community relations.”
U.S. District Judge Solomon Oliver delivered the oath to Rendon. A formal investiture ceremony will take place next month.
Rendon served from 2009 through 2016 as the First Assistant United States Attorney. In that role, she was responsible for the daily operation of the United States Attorney’s Office, including oversight of significant civil and criminal matters, litigation, strategic planning, community outreach, agency coordination, and office policies and procedures.
During that time, she was lead counsel on U.S. v. City of Cleveland, an exhaustive investigation of the Cleveland Division of Police which resulted in significant changes to areas including use of force, crisis intervention with the mentally ill, community engagement, bias-free policing, search and seizure, accountability, training, equipment and staffing. It is viewed as a national model for police reform.
She was also instrumental in developing the U.S. Attorney’s Task Force on Heroin and Opioids, which seeks to find comprehensive solutions to Northern Ohio’s heroin and opioid epidemic. She also was a driving force behind the Northeast Ohio Cyber Consortium, a cross-sector public-private partnership designed to reduce the region’s vulnerability to cyber attacks.
Rendon is a 1987 graduate of Northwestern University School of Law. She began her career as a law clerk to the Honorable Joel Flaum on the Seventh Circuit Court of Appeals. Carole then entered the Attorney General’s Honors Program in the Criminal Division of the Department of Justice and was assigned to the Organized Crime Strike Force Unit in Boston, Massachusetts, which later was merged into the United States Attorney’s Office.
In the Strike Force, she handled a series of investigations and prosecutions of corruption in the Boston Police Department and international Asian organized crime. In April 1994, Rendon became Chief of the Organized Crime Drug Enforcement Task Force, where she oversaw all of the major federal narcotics prosecutions.
In 1998, Rendon returned home to Cleveland and joined Messerman & Messerman. She later started the firm of Kushner & Rendon. In 2007, Carole seized the opportunity to join the women-owned litigation firm of Giffen & Kaminski. In each of those firms, Carole had both an active civil and criminal practice in federal and state court.
Cleveland Heights man indicted for preparing false tax returnsRead the Press Release
A Cleveland Heights man was indicted for preparing false tax returns and making false statements to law enforcement, said Acting U.S. Attorney Carole S. Rendon and Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation’s Cincinnati office.
Immanuel Roddy, 34, operated a tax preparation called Roddy Solutions. He referred to himself in advertising materials as “Tax Beast” and obtained tax documents from clients, according to the indictment.
Roddy prepared false tax returns for his clients in which he claimed false tax credits or false business expenses, according to the indictment.
“Mr. Roddy owned a tax preparation business that blatantly ignored the tax laws by preparing false tax returns,” Enstrom said. “Dishonest return preparers use a variety of methods to cheat the government, including falsifying information on the tax returns to generate larger refunds for their clients.”
This case is being prosecuted by Assistant U.S. Attorney Antoinette Bacon following an investigation by IRS-CI.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
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.
Richfield man sentenced to two years in prison for illegally selling firearmsRead the Press Release
A Richfield Township man was sentenced to two years in prison for illegally dealing firearms after he sold approximately 300 firearms over a three-year period, said Acting U.S. Attorney Carole S. Rendon and ATF Acting Special Agent in Charge Brad Earman.
Timothy J. Cassinger, 49, was not a licensed firearms dealer but sold approximately 300 firearms for profit between June 2012 and October 2015. He was given a warning letter by ATF to cease and desist or get a license to sell firearms. In response to the letter, he continued to buy and sell firearms. Many of the weapons were purchased from federal firearms licensees and then resold by Cassinger at gun shows or online, according to court documents.
Eleven firearms originally purchased by Cassinger were intercepted by Spanish authorities in September 2014, on a ship destined for Beirut, Lebanon . Other firearms purchased by Cassinger were later recovered in Cleveland, Columbus, East Cleveland, New York City and other cities, according to court documents.
“The firearms sold by this defendant eventually made their way around the state, around the country and around the world,” Rendon said. “Those who engage in the business of selling firearms need to be licensed.”
“ATF’s core mission is reducing violent crime in our country,” said ATF Acting Special Agent in Charge Brad Earman. “When individuals illegally sell firearms, they compromise the ability of law enforcement to trace firearms and solve crimes.”
This case is being prosecuted by Assistant U.S. Attorney Kelly L. Galvin following an investigation by the ATF.
Longtime fugitive Eric Bartoli pleads guilty to stealing $65 million from hundreds of peopleRead the Press Release
Eric V. Bartoli, who was indicted in 2003 and was a fugitive for more than a decade, pleaded guilty to defrauding hundreds of investors out of millions of dollars in the 1990s, law enforcement officials said.
Bartoli, 61, is scheduled to be sentenced Nov. 9 after pleading guilty to eight counts, including conspiracy, securities fraud, sale of unregistered securities, wire fraud, mail fraud and attempted income tax evasion.
The guilty plea was announced by Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the FBI, and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
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 is finally being held accountable for his crimes, more than two decades after he started stealing millions of dollars,” Rendon said. “The fact that he will finally be sentenced for his actions is a tribute to all who have worked on this case, who never stopped pursuing justice for the victims.”
“After years of living on the run, Mr. Bartoli is accepting responsibility for swindling individuals out of large sums of money - some their entire life savings,” Anthony said. “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.”
“The investigation of Mr. Bartoli uncovered a multi-million dollar Ponzi scheme laced with a web of financial lies that left 800 investors in financial peril,” Entstrom said. “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. Combining the financial investigative expertise of the IRS with the skills and resources of the FBI and the U.S. Attorney’s Office makes a formidable team for combating major, greed-driven crimes.”
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.
Logan man charged with defrauding people through investment scheme involving racehorsesRead the Press Release
A Logan man was charged in federal court with stealing more than $308,000 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.
The charges were announced by U.S. Attorney Carole Rendon, Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Cincinnati Field office, and Craig Wisniewsky, Special Agent in Charge of the Secret Service’s Cleveland office.
Jonathan Pippin, 29, was charged via criminal information with 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 the information.
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 the information.
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, according to the information.
Four investors lost a combined $308,305, according to the information.
“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.”
“Investment fraud schemes are often described as a house of cards,” Enstrom said. “In this case, when the dust settled, the underlying structure fell apart and exposed the individual responsible."
“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,” Wisniewsky said.
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.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wickliffe mail carrier indicted for worker's compensation fraudRead the Press Release
A federal grand jury returned a two-count indictment charging Nicole M. Gates of Wickliffe, with false statements and fraud to obtain federal employees’ compensation, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
The indictment alleges that Gates, a mail carrier employed by the U.S. Postal Service, falsely represented her physical limitations in connection with her receipt of workers’ compensation benefits.
Assistant United States Attorney Megan R. Miller is prosecuting the case following an investigation by the U.S. Postal Service Office of Inspector General.
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.
Two who worked in Toledo real estate sentenced to two-and-a-half years in prison for $1.5 million bank fraud conspiracyRead the Press Release
Two people who worked in the real estate business in the Toledo area were both sentenced to more than two-and-a-half years in prison for their roles in a $1.5 million conspiracy to defraud several banks, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigations.
Timothy R. Bradley, 41, now of Cary, N.C., and Martha E. Ednie, 54, of Toledo, were each sentenced to 30 months in prison.
Bradley was previously found guilty of one count commit bank fraud and 11 counts of bank fraud. Ednie was previously found guilty of one count commit bank fraud and 20 counts of bank fraud.
Bradley worked as a real estate agent working for various brokerages in the Toledo area, while Ednie was a mortgage broker who operated Apex Mortgage Company. Bradley and Ednie conspired with others, beginning in 2005, to obtain fraudulent mortgage loans by concealing the true purchase price from banks making the loans, according to court documents.
The true purchase price was represented by an “addendum” to the real estate contract, which lowered the purchase price. These addendums were signed near the time of closing and were concealed from the lenders. Unbeknownst to the lenders, they were loaning the home purchasers between 82 percent and 135 percent of each home’s value based on the adjusted addendum purchase price, according to court documents.
Bradley was listed as the real estate agent on the contracts and Ednie secured financing in her role as mortgage broker. Bradley and others attracted buyers to the scheme by advertising the properties as good sources of rental income and assuring cash back at closing, according to court documents.
The investigating agency in this case is the Internal Revenue Service-Criminal Investigations, Toledo. The case is being handled by Assistant United States Attorney Gene Crawford.
Garfield Heights woman charged with stealing $34,000 in Social Security benefitsRead the Press Release
A Garfield Heights woman was charged with theft of government property, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
Joan Hall, 69, stole over $34,000 in Social Security Retirement and Survivor’s benefits to which she was not entitled. Hall fraudulently converted to her own use her deceased husband’s Social Security Retirement and Survivor’s benefits after he died. As her husband’s representative payee, Hall was required to report her husband’s death to the Social Security Administration. She failed to report his death, and instead continued to receive benefits intended for her deceased husband, according to the information.
The United States Social Security Administration Office of the Inspector General conducted the investigation. The case is being prosecuted by Special Assistant United States Attorney Lisa J. Sanniti.
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 information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Ohio psychiatrist pleads guilty to not paying more than a half-million dollars in taxesRead the Press Release
A psychiatrist from Oregon, Ohio, pleaded guilty to tax evasion for not paying more than a half-million dollars in taxes, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Sandra Vonderembse, 65, pleaded guilty to attempting to evade taxation or the payment thereof from 2005 through 2013.
Vonderembse admitted that despite earning compensation in excess of $240,000 per year from 2009 through 2011 as a psychiatrist working for multiple businesses and the State of Ohio, she falsely claimed zero taxable income and zero tax owing for each of those years on federal tax returns. In tax years stretching back to 2005, Vonderembse failed to pay taxes due on her income and filed tax returns falsely claiming taxable income as “None.” From 2005 to 2011 she also had her earnings paid to nominee entities to conceal income from the IRS and sent fake financial instruments to the IRS in purported payment of her taxes, according to court documents.
Vonderembse faces a statutory maximum sentence of five years in prison. She has agreed to pay restitution to the IRS in the amount of $565,000.
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, and the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Internal Revenue Service-Criminal Investigation in Toledo. The case is being handled by Assistant United States Attorney Noah P. Hood and Department of Justice Trial Attorneys Jack Morgan and Jeffrey McLellan.
Former Youngstown man sentenced to more than three years in prison for bank fraud involving Mahoning County homesRead the Press Release
A former Youngstown man was sentenced to more than three years in prison for crimes related to the purchase of a dozen homes in Mahoning County, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Steven D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
R. Allen Sinclair, 52, of Suwanee, Georgia, was sentenced to 41 months in prison and ordered to pay approximately $830,000 in restitution. He pleaded guilty earlier this year to bank fraud.
Sinclair was the owner and operator of Newport Investments, LLC and Newport Development, Inc. in Youngstown. He advertised that the company was in the business of buying, renovating and selling residential real estate properties, according to court documents.
Sinclair, through his companies, solicited money from investors, promising them annual returns of about 10 percent and telling them their funds would be used for the acquisition and renovation of properties in Youngstown. Sinclair knew that the properties needed little or no renovation. Instead, he converted the money for his personal use, according to court documents.
Beginning in 2005, Sinclair acquired the 12 properties—in Youngstown, Canfield, Struthers and Austintown—through land trusts he created for each property. Sinclair fraudulently misled the sellers into believing the land trusts had assumed the mortgage payments. After making minimal monthly payments, Sinclair then stopped paying the mortgages and did not notify the sellers, who were unaware they were still obligated to the loans, according to court documents.
As a result, the properties went into foreclosure, causing substantial losses to the lenders and the federal agencies that insured them, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Robert J. Patton and Suzana Krstevski Koch following an investigation by the Federal Bureau of Investigation, with assistance from the U.S. Department of Housing and Urban Development - Office of Inspector General and the Ohio Attorney General’s Office.
Man facing al-Qaeda terrorism charges indicted for plotting to murder federal judge presiding over his caseRead the Press Release
A Toledo grand jury returned a three-count indictment against Yahya Farooq Mohammad today, charging him with soliciting the murder of a federal judge, announced U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan.
McQuade was joined in the announcement by Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Field Division and U.S. Marshal Peter J. Elliott of the Northern District of Ohio.
Mohammad, 37, from the United Arab Emirates, was charged with attempted first degree murder of a federal officer, solicitation to commit a crime of violence and use of interstate commerce facilities in commission of murder for hire.
Mohammad was indicted last year on charges of conspiring with three other men to travel to Yemen to provide thousands of dollars to Anwar Al-Awlaki in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world. That case remains pending and is assigned to U.S. District Judge Jack Zouhary of the Northern District of Ohio.
In the most recent charges, Mohammad is accused of soliciting someone to kidnap and murder Judge Zouhary.
On April 8, Mohammad allegedly told another inmate in the Lucas County Corrections Center in Toledo that he wanted Zouhary kidnapped and murder. That inmate then introduced Mohammad to an undercover FBI employee, according to the indictment.
The indictment alleges that Mohammad told the inmate that he was willing to pay $15,000 to have Zouhary killed. Mohammad also allegedly told the undercover employee that he could send a down payment through a mail courier or that the undercover could meet Mohammad’s wife in Chicago to pick up the money. When asked when he wanted the murder committed, Mohammad stated: “The sooner would be good, you know,” according to the indictment.
On May 5, Mohammad’s wife, identified in the indictment as N.T., met the undercover agent at a post office in Bolingbrook, Illinois, and provided $1,000 in cash inside a white envelope, according to the indictment.
On May 11, Mohammad informed the inmate that the rest of the money for the murder was coming from Dubai to Texas to Chicago to N.T., and then to the undercover agent, according to the indictment.
According to the indictment, on May 16, the undercover agent and N.T. met, and the undercover agent showed N.T. a photograph that purported to be of Zouhary’s dead body. The undercover agent told N.T. he needed the rest of the money owed to him. N.T. said she would contact Mohammad and then she would contact the undercover agent, according to the indictment.
“According to the charges in the indictment, this defendant not only attempted to have a federal judge murdered, but he did so to obstruct justice in a terrorism case against him,” said U.S. Attorney McQuade. “This prosecution seeks to hold the defendant accountable for attempting to victimize the judge and for trying to undermine our criminal justice system.”
“Conspiring to have a judge killed is not the way to avoid being prosecuted - now Mohammad will be held accountable for additional serious federal charges,” said Special Agent in Charge Anthony. “The FBI will continue to work with our partners to ensure the safety of those that uphold the rule of law. “
“Protecting the federal judiciary is our highest priority,” said U.S. Marshal Elliott. “This is an example where we were able to work with our law enforcement partners to protect a judge and bring charges against a dangerous individual.”
The case is prosecuted by Assistant U.S. Attorneys Michael Freeman and Matthew Shepherd of the Northern District of Ohio following an investigation by the FBI. The U.S. Attorney for the Northern District of Ohio has recused herself from this case.
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 offenses and the characteristics of the violations. Counts one and two of the indictment carry a maximum statutory penalty of 20 years in prison and count three carries a statutory maximum penalty of 10 years in prison.
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 faces charge related to firearms recordsRead the Press Release
An information was filed charging Dimitar Trampevski, 28, of Toledo, with making a false entry or failure to make an entry in records by a federal firearms dealer, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
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 case is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives in Toledo.
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.
Tennessee man sentenced to nearly 20 years in prison for sexually exploiting 14-year-oldRead the Press Release
A Tennessee man was sentenced to nearly 20 years in prison for traveling to Ohio to sexually exploit a 14-year-old, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
David K. Turner, 24, of Knoxville, Tennessee, was sentenced to 238 months of prison after previously pleading guilty to a four-count indictment that charged him with sexually exploiting a minor, distributing a visual depiction of a minor engaged in sexually explicit conduct, coercing and enticing a minor, and traveling with the intent to engage in illicit sexual conduct.
“All forms of child exploitation are deeply troubling, and this case illustrated how quickly online child exploitation can lead to sexual exploitation said Acting United States Attorney Carole S. Rendon. “Mr. Turner coerced a girl that he knew was only 14 to perform sex acts on camera and then planned to take her across the country in the hope of further exploiting her. We commend the Canton and Massillon Police Departments and the FBI Canton Resident Agency in pursuing justice for the victim and her family."
The case was prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the Canton and Massillon Police Departments and the FBI Canton Resident Agency.
Cleveland man charged with distributing fentanyl, heroin and cocaineRead the Press Release
A Cleveland man was charged with conspiracy to distribute fentanyl, heroin and cocaine, law enforcement officials said.
Roland M. Smith, 42, was charged via criminal information with one count of conspiring to distribute at least 40 grams of fentanyl, 100 grams of heroin and 500 grams of cocaine.
The charges seek to forfeit a Kal-Tech .22 pistol and various sizes of ammunition seized on April 27, 2016.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Pinjuh following an investigation by the Northern Ohio Law Enforcement Task Force.
If convicted, the court will determine the defendants’ sentence after a review of 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. In most cases, it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Broadview Heights man sentenced to prison to stealing $3.3 million from school districtRead the Press Release
A Broadview Heights man was sentenced today to 30 months in prison for his role in the theft of more than $3.3 million from the Cuyahoga Heights School District, law enforcement officials said.
Dominick Palazzo, 42, pleaded guilty earlier this year to one count of conspiracy to commit mail fraud and one count of conspiracy to commit money laundering. His brother, Joseph M. Palazzo, was the Information Technology director of the Cuyahoga Heights School District. The Palazzos, along with David Donadeo and Dennis Boyles, conspired together to defraud the school district through dozens of fraudulent billings submitted to the Cuyahoga Heighs School District by sham companies that Dominick Palazzo, Donadeo and Boyles controlled, according to court documents.
The thefts occurred over a period of four years. The U.S. District Judge Benita Y. Pearson sentenced Dominick Palazzo to 30 months in prison, and ordered him to pay $3,333,448 in restitution to the Cuyahoga Heights School District. Judge Pearson also ordered the forfeiture of $43,409.53 that law enforcement previously seized from bank accounts that Dominick Palazzo controlled or that Palazzo otherwise paid over voluntarily to the government toward this debt.
“This defendant, along with his brother and friends, stole millions of dollars from the children and taxpayers in Cuyahoga Falls,” said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio. “Their lengthy prison sentences appropriately reflect the severity of their offenses.”
“This investigation uncovered a multi-million-dollar embezzlement scheme laced with a web of financial lies that left a local school district in financial peril,” said Kathy A. Enstrom, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati Field Office.
“Dominick Palazzo violated the trust that the citizens and students of Cuyahoga Heights had placed in him by funding his personal account with their tax dollars,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The investigators are to be commended for uncovering this enormous fraud.”
Joseph Palazzo was employed as the Information Technology director of the Cuyahoga Heights School District until February 2011. He was responsible for managing the district’s IT Department, which included purchasing hardware and software and making other IT expenditures to benefit the district and its students, according to court documents.
Joseph Palazzo devised a scheme to divert millions of dollars of district funds to his personal use and the personal use of others. This scheme involved Joseph Palazzo submitting to the district for payment false invoices that purported to be for IT-related goods and services purchased from legitimate companies by the district’s IT Department to benefit the district. He represented that the invoices he submitted were legitimate, and he approved the false invoices himself or forged the signature of another in the approval section, according to the information.
However, these invoices were for services never performed, fictitious software and hardware, and software and hardware never received or already purchased by the district from another source. The companies named on the invoices did not supply such goods to or perform such services for the district and were nothing more than “shells,” according to court documents.
Joseph Palazzo’s actions caused the district to issue checks to these shell vendor corporations, which were established and owned by Dominick Palazzo, Boyles and Donadeo. The shell vendor corporation owners kept approximately half of the stolen money themselves and funneled the remainder of the money back to Joseph Palazzo for his personal use, according to court documents.
These shell companies included Laptops and More, Inc., and Impact Global, LLC, which were established by Dominick Palazzo.
The district sustained a total loss of at least $3,333,448, as a result of the fraudulent scheme according to the information.
Joseph Palazzo was previously found guilty and is currently serving a sentence of more than 11 years in prison. Boyles was sentenced to more than two years in prison and Donadeo’s case is pending.
This case was prosecuted by Assistant United States Attorney Rebecca Lutzko following an investigation by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation.
Warren man sentenced to nearly four years in prison for bank fraudRead the Press Release
A man from Warren, Ohio, was sentenced to 45 months in prison for defrauding banks out of approximately $2.5 million through fraudulent short sales of gas stations in the Youngstown area and by other means, law enforcement officials said.
Shaukat Sindhu, 56, previously pleaded guilty to two counts of conspiracy to commit bank fraud, one count of corrupt interference with the administration of the Internal Revenue Service, and one count of marriage fraud.
“This defendant acted like the rules did not apply to him,” Acting U.S. Attorney Carole Rendon said. “He engaged in multiple fraud schemes, using his friends and family members without regard to the consequences. This sentence should send a message that fraud and deceit will be punished in the Northern District of Ohio.”
“Attempting to skirt your income tax obligations by using multiple Social Security numbers, dealing in cash, and concealing income and assets in the names of nominees is a recipe for criminal prosecution,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
"Sindhu engaged in numerous illegal financial transactions in an effort to enrich himself. He will be residing in a prison cell instead of his fraudulently obtained 13 bedroom home. The FBI, along with our partners, will continue to root out fraudsters and hold them accountable for their deceitful actions," said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Sindhu owned several gas stations and other commercial property, but failed to make mortgage payments on these properties. Sindhu and others defrauded First Midwest and Consumers National banks by making false and misleading representations about ownership of the properties between 2008 and 2014, using a false identity, and creating a fictional Middle Easter investor that Sindhu used to create the illusion there was an independent buyer for the properties at a significant discount. Tahir Iqbal of Crown Point, Indiana, acted as a straw buyer for Sindhu in a short sale, enriching Sindhu by reducing or eliminating the principle owned on the properties, according to court documents. Iqbal was sentenced to 12 months and 1 day for his role in the bank fraud conspiracy.
Iqbal also served as a straw buyer for Sindhu for a 16,800-square foot, nine-bedroom, 13-bathroom home in Oak Brook, Illinois. That home was forfeited as part of the plea agreement.
This case was prosecuted by Assistant U.S. Attorneys Chelsea Rice, Adam Hollingsworth and James Morford following an investigation by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations and U.S. Immigrations and Customs Enforcement.
Leader of labor trafficking ring sentenced to 15 years in prisonRead the Press Release
The leader of a human trafficking organization and a co-defendant were sentenced to prison today for their roles in luring Guatemalan minors and adults to the United States under false pretenses and then using threats of physical harm to compel them to work on egg farms in Ohio. The sentences were announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; Acting 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.
Aroldo Castillo-Serrano, 33, was sentenced to 188 months in prison and Ana Angelica Pedro-Juan, 22, was sentenced to 10 years in prison. U.S. District Judge James G. Carr of the Northern District of Ohio also ordered the defendants to pay a total of $67,230 in restitution, jointly and severally, to the victims.
Castillo-Serrano pleaded guilty on Aug. 24, 2015, to conspiracy to commit forced labor, forced labor, witness tampering and alien harboring charges. Pedro-Juan pleaded guilty on Dec. 14, 2015, to conspiracy to commit forced labor.
According to documents filed in the case and admissions made in court in connection with the guilty pleas, the defendants and their associates recruited workers from Guatemala, some as young as 14 or 15 years old, by falsely promising them good jobs and a chance to attend school in the United States. The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and to work at physically demanding jobs at Trillium Farms for up to 12 hours a day for minimal amounts of money. The work included cleaning chicken coops, loading and unloading crates of chickens, debeaking chickens and vaccinating chickens. Eight minors and two adults were identified in the indictment as victims of the forced labor scheme.
Castillo-Serrano recruited the victims, smuggled them into the United States, oversaw money transfers and issued threats to ensure compliance. Pedro-Juan falsely represented herself to government officials as a family friend of the minor victims in order to have them released to her custody. She also oversaw the trailers where the victims were housed and arranged for their wages to be transferred to co-conspirators in Guatemala and elsewhere.
“These defendants preyed on the hopes of vulnerable young workers, turning their dreams into a nightmare by exploiting their undocumented status and using fear to compel them to work long hours for minimal pay,” said Principal Deputy Assistant Attorney General Gupta. “This case demonstrates the Justice Department’s firm commitment to combating labor trafficking by holding traffickers accountable and restoring the rights, freedom and dignity of victims. I commend the strong partnerships that contributed to dismantling this human trafficking organization.”
The Northern District of Ohio is one of six districts selected as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. Designated ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor; international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
“These defendants forced minors to work around the clock and live in inhumane conditions, while threatening them and their relatives,” said Acting U.S. Attorney Rendon. “Today’s prison sentence underscores the severity of these human trafficking cases, but also should serve as a reminder that these cases happen all around us in plain sight.”
“These defendants preyed on the desire of the children and their parents for a better life by offering freedom on American soil only to be imprisoned in servitude,” said Special Agent in Charge Anthony. “These actions cannot be tolerated. Law enforcement remains vigilant in detecting and disrupting these human trafficking rings.”
A third co-defendant, Conrado Salgado-Soto, was sentenced on April 11, 2016, to 51 months in prison. Three more defendants, Conrado Salgado-Borbon, Bartolo Dominguez and Pablo Duran Jr., pleaded guilty to immigration offenses in connection with this case and were sentenced to six, 12 and 15 months in prison, respectively.
The investigation is ongoing. The case is being investigated by the FBI Cleveland Division’s Mansfield Resident Agency, U.S. Immigration and Customs Enforcement-Homeland Security Investigations, the Marion Police Department and the Marion County Sherriff’s Office. The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio.
Leader of Human Trafficking Organization Sentenced to over 15 Years for Exploiting Guatemalan Migrants at Ohio Egg FarmsRead the Press Release
The leader of a human trafficking organization and a co-defendant were sentenced to prison today for their roles in luring Guatemalan minors and adults to the United States under false pretenses and then using threats of physical harm to compel them to work on egg farms in Ohio. The sentences were announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; Acting 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.
Aroldo Castillo-Serrano, 33, was sentenced to 188 months in prison and Ana Angelica Pedro-Juan, 22, was sentenced to 10 years in prison. U.S. District Judge James G. Carr of the Northern District of Ohio also ordered the defendants to pay a total of $67,230 in restitution, jointly and severally, to the victims.
Castillo-Serrano pleaded guilty on Aug. 24, 2015, to conspiracy to commit forced labor, forced labor, witness tampering and alien harboring charges. Pedro-Juan pleaded guilty on Dec. 14, 2015, to conspiracy to commit forced labor.
According to documents filed in the case and admissions made in court in connection with the guilty pleas, the defendants and their associates recruited workers from Guatemala, some as young as 14 or 15 years old, by falsely promising them good jobs and a chance to attend school in the United States. The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and to work at physically demanding jobs at Trillium Farms for up to 12 hours a day for minimal amounts of money. The work included cleaning chicken coops, loading and unloading crates of chickens, debeaking chickens and vaccinating chickens. Eight minors and two adults were identified in the indictment as victims of the forced labor scheme.
Castillo-Serrano recruited the victims, smuggled them into the United States, oversaw money transfers and issued threats to ensure compliance. Pedro-Juan falsely represented herself to government officials as a family friend of the minor victims in order to have them released to her custody. She also oversaw the trailers where the victims were housed and arranged for their wages to be transferred to co-conspirators in Guatemala and elsewhere.
“These defendants preyed on the hopes of vulnerable young workers, turning their dreams into a nightmare by exploiting their undocumented status and using fear to compel them to work long hours for minimal pay,” said Principal Deputy Assistant Attorney General Gupta. “This case demonstrates the Justice Department’s firm commitment to combating labor trafficking by holding traffickers accountable and restoring the rights, freedom and dignity of victims. I commend the strong partnerships that contributed to dismantling this human trafficking organization.”
The Northern District of Ohio is one of six districts selected as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. Designated ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor; international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
“These defendants forced minors to work around the clock and live in inhumane conditions, while threatening them and their relatives,” said Acting U.S. Attorney Rendon. “Today’s prison sentence underscores the severity of these human trafficking cases, but also should serve as a reminder that these cases happen all around us in plain sight.”
“These defendants preyed on the desire of the children and their parents for a better life by offering freedom on American soil only to be imprisoned in servitude,” said Special Agent in Charge Anthony. “These actions cannot be tolerated. Law enforcement remains vigilant in detecting and disrupting these human trafficking rings."
A third co-defendant, Conrado Salgado-Soto, was sentenced on April 11, 2016, to 51 months in prison. Three more defendants, Conrado Salgado-Borbon, Bartolo Dominguez and Pablo Duran Jr., pleaded guilty to immigration offenses in connection with this case and were sentenced to six, 12 and 15 months in prison, respectively.
The investigation is ongoing. The case is being investigated by the FBI Cleveland Division’s Mansfield Resident Agency, U.S. Immigration and Customs Enforcement-Homeland Security Investigations, the Marion Police Department and the Marion County Sherriff’s Office. The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio.