Northern District of Ohio
Press releases recorded for this federal judicial district.
Warren man pleads guilty to mailing white powder to former employerRead the Press Release
Anthony J. Natale, of Warren, pleaded guilty today to one count of conveying false information related to the use of a weapon of mass destruction, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Natale is scheduled to be sentenced on Sept 27.
Natale mailed an envelope containing white powder via the United States Postal Service to American Business Center, at 7677 South Avenue, Youngstown, on November 10, 2014. This was done with the intent to convey false and misleading information related to the use of a weapon of mass destruction, according to court documents.
Natale formerly worked at American Business Center. He was terminated on Oct. 6, 2014, according to court documents.
The case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould, and was investigated by the Federal Bureau of Investigation and Mahoning County Sheriff's Office.
Two Chinese nationals charged with defrauding Goodyear out of $1.5 millionRead the Press Release
Xin Franco Fan, 40, and Rex Xu Yu, 41, two Chinese nationals, were charged via criminal information with conspiracy to commit wire fraud and honest services wire fraud for defrauding Goodyear Tire & Rubber Company out of at least $1.5 million, said Acting U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
Fan and Yu were employees of Goodyear Orient Company (Private) Limited, or GOCPL, a subsidiary of Goodyear, located in Singapore and with offices in China. GOCPL manages all of the natural rubber purchasing, delivery, financing and quality certifications for Goodyear’s global operations. Goodyear, through GOCPL, spends approximately $1 billion annually to acquire natural rubber for its operations. Fan was Yu’s manager, according to the information.
Fan, Yu and others incorporated or caused to be incorporated overseas shell companies in which they held a financial interest. Fan, Yu and others caused Goodyear to purchase natural rubber from these shell companies. They also required Goodyear suppliers to use loading companies in which they had a financial interest, This took place between 2013 and 2016, according to the information.
“These two defendants stole $1.5 million from Goodyear over several years,” Rendon said. “Goodyear is to be commended for promptly reaching out to law enforcement when they uncovered this scheme. Because of their quick action, these men will pay for their crimes.”
“The FBI is responsible for protecting the public’s interest in American companies by aggressively pursuing and bringing to justice those who unjustly profit from American ingenuity by stealing secrets,” said Stephen D. Anthony, Special Agent in Charge, FBI, Northern District of Ohio.
As a condition of their employment, Fan and Yu were obligated to act in the best interests of Goodyear when purchasing natural rubber. In 2015, Goodyear received an anonymous tip that Fan and Yu were receiving kickback payments in connection with GOCPL’s raw materials purchases. With the cooperation of Goodyear executives, an investigation into the matter led to Fan and Yu being arrested earlier this year and criminal charges being filed in federal court.
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.
This case is being prosecuted by Assistant U.S. Attorneys Rebecca Lutzko, Henry F. DeBaggis and James Morford following an investigation by the FBI.
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.
Steubenville man forfeits $1.5 million, sentenced to house arrest for operating gambling businessRead the Press Release
A Steubenville man forfeited more than $1.5 million and was sentenced to eight months of house arrest for operating a gambling business, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Ohio Attorney General Mike DeWine.
Timothy Smith, 53, pleaded guilty earlier this year to one count of conducting an illegal gambling business. He was sentenced to eight months of house arrest with electronic monitoring and ordered to forfeit $1,526,104.
Smith operated Timmy’s, a sports wagering business in Steubenville where people could wager on professional and amateur sporting events. Employees at Timmy’s displayed dry erase boards and paper fliers showing high school, college and professional sporting events and associated point spreads. Confidential sources placed several bets on games in 2013 and 2014, according to court documents.
This case was prosecuted by Assistant U.S. Attorney David Toepfer and James Morford following an investigation by the Ohio Bureau of Criminal Investigation, the Steubenville Police Department and the FBI.
East Liverpool man indicted for possessing images of child sexual abuseRead the Press Release
Donald Guthrie, Jr., 56, of East Liverpool, was charged with receiving visual depictions of real minors engaged in sexually explicit conduct and possession of child pornography, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.
Guthrie received numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between June and August 2014, On November 6, 2015, Guthrie was in possession of a Gateway LX series computer that contained child pornography, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Department of Homeland Security, Cleveland Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Heights man named in 22-count indictment, charged with identity theft and tax violationsRead the Press Release
A 22-count indictment was returned charging a Cleveland Heights man with identity theft and tax violations, said Acting U.S. Attorney Carole S. Rendon and Kathy A Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Darryl E. Farmer, 44, was indicted on one count of conspiracy to defraud, nine counts of false tax claims, eight counts of aiding in the preparation of false tax returns, two counts of wire fraud and two counts of aggravated identity theft.
Farmer held himself out as a neighborhood tax preparer who paid recruiters a “referral fee” to provide him identifications and personal identifiers of others. Farmer used this information to file false tax returns, including claiming tax credits for businesses that did not exist, according to the indictment.
Farmer also opened multiple personal and business bank accounts, which he controlled, in the names of these various people in order to deposit the refunds from the tax returns he filed, according to the information.
Farmer falsely claimed more than $100,000 from the IRS between 2010 and 2012, according to the indictment.
“This defendant stole identities and stole from taxpayers,” Rendon said.
“IRS Criminal Investigation stands ready to investigate anyone who would put a taxpayer at risk for a quick profit,” Enstrom said. "Our special agents use their investigative and financial expertise to detect and hold accountable abusive tax return preparers who falsely tell taxpayers they are eligible for tax credits that they are not entitled to receive."
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.
This case is being prosecuted by Assistant U.S. Attorney Mark Bennett following an investigation by the IRS.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Youngstown man sentenced to 15 years in prison for having firearmRead the Press Release
A Youngstown man was sentenced to 15 years in prison for being a felon in possession of a firearm, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Bradley Earman, Acting ATF Special Agent in Charge for the Columbus Field Division.
Lawrence J. Johnson, 52, was found to be an armed career criminal. He illegally possessed a Bryco 9 mm pistol on Aug. 12, despite four felony convictions in state court – attempted robbery in 1982 in Mahoning County, robbery in 1983 in Mahoning County, robbery in 1997 in Trumbull County and complicity to aggravated robbery with a firearm in 2005 in Trumbull County.
“We will continue to prosecute those who carry firearms despite convictions that forbid them from having guns,” Rendon said. “These are people that everyone agrees should not have access to firearms.”
“ATF is committed to combating gun violence in our communities,” Earman said. “We will continue to work with our law enforcement partners to arrest violent criminals and make our communities safer.”
This case was prosecuted by Assistant U.S. Attorney Kevin Filiatraut following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department settles disability-based housing discrimination lawsuit with developer and architectRead the Press Release
The Justice Department announced today that Dean Windham and Milton Studer, a real estate developer and an architect in Ohio, as well as several companies that they owned and controlled, have agreed to pay a total of $160,000 to resolve allegations that they violated the Fair Housing Act by designing and constructing two neighboring condominium complexes in Hartville, Ohio, with a variety of features that made them inaccessible to persons with disabilities.
Under the terms of the agreement, which must still be approved by the U.S. District Court for the Northern District of Ohio, the defendants will pay $100,000 to current condominium owners at Windham Bridge Condominiums and Hampton Court Condominiums who choose to make accessibility modifications to their units. These modifications include eliminating steps and excessive slopes in the walkways to the front entrances of their units; widening doorways; removing or lowering thresholds; installing removable cabinets in kitchens and bathrooms to increase maneuvering space for wheelchair use and relocating toilets, showers and sinks to provide access to a wheelchair user.
“This settlement makes clear that those who design and build multifamily housing must comply with the accessibility provisions of the Fair Housing Act,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue to protect the rights of people with disabilities to live in their communities without facing barriers like inaccessible housing.”
“Accessible housing benefits the entire community,” said Acting U.S. Attorney Carole S. Rendon of the Northern District of Ohio. “It provides living options for people with mobility impairments, and helps ensure that our older residents can stay in their homes as long as possible. The Department of Justice is committed to enforcing the laws which protect this important right.”
Under the agreement, the defendants will also pay $10,000 to the Tri-County Center for Independent Living and $10,000 to the Fair Housing Advocates Association, two fair housing community organizations that expended resources in connection with this matter, as well as a $40,000 civil penalty to vindicate the public interest. The lawsuit arose out of complaints that Tri-County Center for Independent Living and the Fair Housing Advocates Association originally filed with the U.S. Department of Housing and Urban Development (HUD). After investigating the complaints, HUD determined that the defendants had violated the Fair Housing Act and referred the matter to the Justice Department.
“One out of five persons in America lives with some type of physical disability, making it more important than ever that architects and builders comply with the Fair Housing Act’s accessibility requirements,” said Gustavo Velasquez, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “Today’s settlement reaffirms HUD and the Justice Department’s commitment to ensuring that housing providers meet that obligation.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Individuals who believe that they have been victims of housing discrimination can call the Justice Department at 1-800-896-7743 or e-mail the Justice Department at [email protected]. Such persons may also contact the Department of Housing and Urban Development at 1-800-669-9777.
Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Justice Department Settles Disability-Based Housing Discrimination Lawsuit with Ohio Developer and ArchitectRead the Press Release
The Justice Department announced today that Dean Windham and Milton Studer, a real estate developer and an architect in Ohio, as well as several companies that they owned and controlled, have agreed to pay a total of $160,000 to resolve allegations that they violated the Fair Housing Act by designing and constructing two neighboring condominium complexes in Hartville, Ohio, with a variety of features that made them inaccessible to persons with disabilities.
Under the terms of the agreement, which must still be approved by the U.S. District Court for the Northern District of Ohio, the defendants will pay $100,000 to current condominium owners at Windham Bridge Condominiums and Hampton Court Condominiums who choose to make accessibility modifications to their units. These modifications include eliminating steps and excessive slopes in the walkways to the front entrances of their units; widening doorways; removing or lowering thresholds; installing removable cabinets in kitchens and bathrooms to increase maneuvering space for wheelchair use and relocating toilets, showers and sinks to provide access to a wheelchair user.
“This settlement makes clear that those who design and build multifamily housing must comply with the accessibility provisions of the Fair Housing Act,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue to protect the rights of people with disabilities to live in their communities without facing barriers like inaccessible housing.”
“Accessible housing benefits the entire community,” said Acting U.S. Attorney Carole S. Rendon of the Northern District of Ohio. “It provides living options for people with mobility impairments, and helps ensure that our older residents can stay in their homes as long as possible. The Department of Justice is committed to enforcing the laws which protect this important right.”
Under the agreement, the defendants will also pay $10,000 to the Tri-County Center for Independent Living and $10,000 to the Fair Housing Advocates Association, two fair housing community organizations that expended resources in connection with this matter, as well as a $40,000 civil penalty to vindicate the public interest. The lawsuit arose out of complaints that Tri-County Center for Independent Living and the Fair Housing Advocates Association originally filed with the U.S. Department of Housing and Urban Development (HUD). After investigating the complaints, HUD determined that the defendants had violated the Fair Housing Act and referred the matter to the Justice Department.
“One out of five persons in America lives with some type of physical disability, making it more important than ever that architects and builders comply with the Fair Housing Act’s accessibility requirements,” said Gustavo Velasquez, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “Today’s settlement reaffirms HUD and the Justice Department’s commitment to ensuring that housing providers meet that obligation.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Individuals who believe that they have been victims of housing discrimination can call the Justice Department at 1-800-896-7743 or e-mail the Justice Department at [email protected]. Such persons may also contact the Department of Housing and Urban Development at 1-800-669-9777.
Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Noble Homes Consent Order
Cleveland attorney convicted of money laundering for accepting $20,000 in purported drug profitsRead the Press Release
A Cleveland attorney was convicted of money laundering for accepting $20,000 in purported drug proceeds and agreeing to launder the money, said Carole Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Matthew J. King, 45, was convicted on one count of attempted money laundering and two counts of money laundering following a weeklong jury trial. He is scheduled to be sentenced by U.S. District Judge Donald C. Nugent on Aug. 30.
King accepted $20,000 in cash purported to be the proceeds of the sale of narcotics. He then wrote two checks totaling $4,000 in early 2014, according to trial testimony and court documents.
This case was prosecuted by Assistant U.S. Attorneys Michelle M. Baeppler and Margaret A. Sweeney 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.
Cleveland businessman fined $250,000 and put on house arrest for lying about payments to city officialsRead the Press Release
The owner of a business in Cleveland’s Lee-Harvard neighborhood was fined $250,000 and sentenced to six months of house arrest for lying to federal agents about paying cash to city officials, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Ashwani “Eddie” Adya, 50, of Solon, previously pleaded guilty to one count of making a false statement to a law enforcement officer.
Adya operated a retail food and beverage business. Lawrence Payten worked at a nonprofit community organization that promoted commercial development in Cleveland’s Lee-Harvard neighborhood. Lejon C. Woods worked as a contract compliance officer in the City of Cleveland’s Office of Equal Opportunity.
Between November 2009 and August 2010, Adya paid cash to Payten and Woods. He lied about these payments when questioned by an FBI agent on June 18, 2015, according to court documents.
Woods and Payten both pleaded guilty to criminal charges. Woods was sentenced to six months in jail while Payten was sentenced to eight months of house arrest.
This case is being prosecuted by Assistant U.S. Attorneys Adam Hollingsworth and Henry F. DeBaggis following an investigation by the Federal Bureau of Investigation.
Three indicted for defrauding banks with alterered money ordersRead the Press Release
A federal grand jury returned a four-count indictment charging Michael Baker, 23, of Covington, Georgia; Clinton Gaynor, 27, and Asia Loveless, 20, both of Cleveland, for defrauding local banks by presenting altered U.S. Postal money orders into the bank accounts of recruited people and later withdrawing funds under false pretenses, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
The indictment alleges that Baker, Gaynor and Loveless recruited local people to deposit 119 altered U.S. Postal money orders into their bank accounts and later made cash withdrawals totaling over $59,000 from various ATMs.
Assistant United States Attorneys Robert W. Kern and Karrie D. Howard are prosecuting this case, following an investigation by the U.S. Postal Inspection Service.
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.
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.
Minerva man indicted for transporting girl across state lines to engage in illicit sexual conductRead the Press Release
Eric T. Shotwell, 41, of Minerva, was charged with transportation of a minor to engage in illegal sexual activity and travel with intent to engage in illicit sexual conduct, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
Shotwell knowingly traveled from Ohio to Missouri and Kentucky in March for the purpose of engaging in illicit sexual conduct with a 14-year‑old girl, according to the indictment.
The indictment also charges that, from March 13, 2016, through March 17, 2016, Shotwell knowingly transported a 14-year-old girl from Kentucky to Ohio with the intent that the girl would be engaged in sexual activity for which Shotwell could be charged with a criminal offense.
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.
The case was investigated by the Canton Office of the Federal Bureau of Investigation, the Minerva Police Department, the Canton Police Department, and the West Plains, Missouri Police Department. It is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan.
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.
Defiance woman charged wtih failing to report nearly $800,000 in incomeRead the Press Release
A Defiance woman was charged with failing to report nearly $800,000 in income to the Internal Revenue Service, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
Sandra Vonderembse, 65, of did not report taxable income between the tax years of 2009 through 2011. During that time, her income was approximately $793,204, meaning she would owe the IRS approximately $136,351 in taxes, according to the criminal information.
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, and the defendant’s role in the offense and the characteristics of the violation. Tax evasion is punishable by a sentence of of up to five years in prison. 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, 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.
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.
Berea man indicted for selling heroin that killed Lakewood manRead the Press Release
A two-count indictment was filed in federal court charging a Berea man with distributing heroin that killed a Lakewood man earlier this year, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Brandon Wagner, 43, was indicted on one count of distribution of heroin and one count of using a communication facility to facilitate a felony. The charges stem from the March 16 sale of heroin that resulted in the death of another person, according to the indictment.
That count carries a sentencing enhancement that can result in a 20-year mandatory minimum penalty.
“The unrelenting wave of fatalities associated with heroin and opioid abuse is a reminder to all of us that we need to do more to protect our community from this epidemic,” Rendon said. “The only way we can stem this tide is with a comprehensive approach focused on prevention, treatment, prescribing practices and enforcement. Law enforcement will continue to aggressively prosecute dealers whose actions result in the deaths of our sons and daughters.”
“The crisis we have in our communities due to heroin and fentanyl is not a problem for just the addicted,” said Lakewood Police Chief Tim Malley. “The families and friends are just as intimately involved with the damage and sorrow this causes. The Lakewood Police Department will continue to investigate all of our overdose cases to hold those accountable that have participated in any way in ending someone’s life. Those selling the heroin know that fatal consequences are all too likely with what they are selling, all for a few dollars. The Lakewood Police Department will continue to work with the U.S. Department of Justice, the Cuyahoga County Prosecutors Office, and the Cuyahoga County Medical Examiner to hold those accountable and take them off our streets for lengthy prison sentences.”
This case is being prosecuted by Assistant U.S. Attorney Marisa Darden following an investigation by the Lakewood Police Department and 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.
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.
Warren man charged with violating the Clean Water ActRead the Press Release
A former employee of a Youngstown-based company was charged with violating the Clean Water Act for directing another employee to dump fracking waste into a tributary of the Mahoning River, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
David N. Jenkins, 34, of Warren, was charged via criminal information with one count of making unpermitted discharges in violation of the Clean Water Act.
According to the indictment and related court documents:
Hardrock Excavating LLC was owned by Benedict Lupo and located at 2761 Salt Springs Road in Youngstown. The company provided services to the oil and gas industry in Ohio and Pennsylvania, including the storage of brine and oil-based drilling mud used in hydrofracturing, or fracking.
There were approximately 58 mobile storage tanks at the facility and each held approximately 20,000 gallons.
Lupo directed employees to empty some of the waste liquid stored at the facility into a nearby wastewater drain on or about Nov. 1, 2012. Lupo directed the employees to conduct this activity only after no one else was at the facility and only after dark.
The employees, at Lupo’s direction, emptied some of the waste liquid at the facility into the nearby stormwater drain using a hose on numerous occasions over the next several months. The drain flowed into a tributary of the Mahoning River and ultimately into the Mahoning River.
On occasion, Lupo was unable to speak directly to employees. In those instances, Lupo directed Jenkins to contact the employees about emptying the stored waste liquids into the stormwater drain at night, which Jenkins did.
The last time an employee emptied some of the waste liquid into the drain was on or about Jan. 31, 2013. The waste liquid that night included brine and drill cuttings. A sample of the discharge taken that night was black in color and a subsequent analysis showed the presence of several hazardous pollutants, including benzene and toluene.
Lupo, of Poland, Ohio, was previously found guilty of making an unpermitted discharge and sentenced to more than two years in prison.
This case is being prosecuted by Special Assistant U.S. Attorney Brad Beeson following an investigation by the Ohio EPA, Ohio Department of Natural Resources, U.S. EPA, the Ohio Bureau of Criminal Investigation, the Youngstown Department of Public Works and the Youngstown Fire Department.
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.
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.
Akron man convicted of extortion following weeklong trialRead the Press Release
A jury convicted an Akron man on five counts for related to an extortion plot, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Franklin D. Conley, 28, was convicted on one count of violating the Hobbs Act, three counts of use of a communication facility to facilitate a drug offense and one count of interstate communication with intent to extort following a weeklong trial. He was acquitted of one count of possession with intent to distribute heroin.
Conley and Patrick Griffin repeatedly threatened the victim and his family, beginning in February 2015, with serious physical harm or death if they were not given money or introduced to a source of illegal drugs, according to court documents and trial testimony.
Conley is scheduled to be sentenced on Sept. 29.
Griffin, 29, also of Akron, has pleaded guilty to his role in the crime and is awaiting sentencing.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorneys Teresa Riley and Robert Bulford
Former director of Cleveland VA Medical Center sentenced to nearly five years in prison for taking money from design firmRead the Press Release
The former director of the Cleveland and Dayton VA Medical Center was sentenced to 57 months in prison for working as a consultant for and taking money and other things of value from a design firm bidding on VA jobs and sharing confidential information about construction projects while still employed by the VA, law enforcement officials said.
William D. Montague, 63, of Brecksville, previously pleaded guilty to 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.
Montague has paid approximately $390,000 in restitution and forfeiture.
“As a Veterans Affairs Medical Center Director, William Montague undertook a responsibility to serve the public but instead he chose to become self-serving accepting bribes and kickbacks in exchange for favorable official actions,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Field Office. “The FBI and our law enforcement partners will continue to aggressively pursue those who abuse the trust we place in public servants to act in the community’s best interest.”
“Our joint investigation with the FBI resulted in the conviction of a former VA Medical Center Director who abused his position by taking bribes and manipulating the government's contracting process for personal gain,” said Gregg Hirstein, Veterans Affairs, Office of Inspector General Special Agent in Charge, Central Field Office. “We are pleased that this sentence reflects the seriousness of the crimes and believe this conviction will serve as a deterrent to others who might consider defrauding the Department of Veterans Affairs and our country's veterans.”
Montague served as director of the Cleveland VA Medical Center from 1995 until February 3, 2010. On March 11, 2011, Montague began working as director of the Dayton VA Medical Center, a position he held through December 17, 2011, according to court documents.
Court documents detail interactions between Montague and a company identified as Business 75, an integrated design firm with offices throughout the United States, including New York, Illinois, Virginia, Missouri, and California. The company performed work for the VA directly and through its participation in joint ventures and other teaming agreements.
Montague, Business 75, and employees of the company 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 beginning in 2010, according to court documents.
Montague secretly used his position as Dayton VA Medical Center director to enrich himself and his designees (including House of Montague, a financial services company Montague operated) by soliciting and accepting gifts, payments, and other things of value from Business 75 in exchange for favorable official actions. He also solicited money and a consulting contract from Business 75 in exchange for information related to VA contracts and projects, which would benefit Business 75, Business 75’s principal and their designees, according to court documents.
This was done to give Business 75 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, according to court documents.
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.
Uniontown man sentenced to nearly five years in prison for defrauding investors out of $5.6 millionRead the Press Release
A Uniontown man was sentenced to nearly five years in prison for operating a scheme in which 19 investors lost approximately $5.6 million, law enforcement officials said.
Geoffrey W. Nehrenz, 37, previously pleaded guilty to one count of wire fraud and two counts of money laundering.
U.S. District Court Judge Christopher Boyko sentenced Nehrenz to 55 months in prison and ordered him to pay $5.6 million in restitution.
Nehrenz promoted and sold investment contracts to clients through Keystone Capital Management, LLC (“KCM”) an investment adviser company located in Uniontown, which is an Ohio limited liability company registered as an investment adviser firm, but not registered with the Securities and Exchange Commission. This took place between 2009 and 2013. Nehrenz was the managing member, president, and chief executive officer of KCM, according to court documents.
Nehrenz induced 19 clients to invest in Keystone by promoting KCM’s ability to generate positive investment returns in equity markets while mitigating risk. He falsely represented to potential clients that their funds would be pooled, invested during the day in large- and mid-capitalization, publicly traded U.S. securities exclusively, and converted to cash overnight. Rather than investing the funds, Nehrenz used client money to pay his personal expenses, to pay business expenses to promote and prolong his investment scheme, and to make speculative, high-risk trades with domestic and overseas private placement vehicles without his clients’ authority, transactions known as “side pocket investments,” according to court documents.
Nehrenz induced at least 19 clients to invest approximately $7 million into his hedge fund, resulting in losses to his clients in the amount of approximately $5.6 million.
The indictment was presented by AUSA Christos N. Georgalis after an investigation by agents of the Federal Bureau of Investigation and Internal Revenue Service.
Three indicted for $634,000 health care fraud involving two Toledo companiesRead the Press Release
Three people were indicted in federal court for their roles in a $634,000 health care fraud scheme involving two ambulette companies they operated and fraudulent billing of the Ohio Medicaid program, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Named in the six-count indictment are: Yahya Sayid Ibrahim, 34, of Toledo; Abdul Haji Faqi, 40, of Canal Winchester, and Hussein Ahmed, 45, of Toledo.
The indictment charges Ibrahim, Faqi and Ahmed with a conspiracy to commit health care fraud through the operation of two Toledo companies, Blue Line Express Taxi and Medical Transport and Metro Medical Transportation, LLC. The indictment also charges the defendants with five substantive counts of health care fraud related to Medicaid benefits for conduct that took place between 2009 and 2016.
The defendants transported – and billed for -- Medicaid recipients that did not need wheelchairs, understanding Medicaid only provided reimbursement for recipients who required the assistance of wheelchairs and were actually transported in wheelchairs. They also billed Medicaid for ambulette transportation services (vans with lifts for wheelchairs) when they were actually transporting people in vehicles that were not ambulettes, such as Toyota Camrys, 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 agencies in this case are Health and Human Services Office of Inspector General, the Ohio Attorney General’s Medicaid Frauds Control Unit and the Federal Bureau of Investigation in Toledo. The case is being handled by Assistant United States Attorneys Noah P. Hood and Gene Crawford.
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.
Seven people indicted related to ring that trafficked minors in Lima and Fort WayneRead the Press Release
Five people were indicted in federal court on human trafficking charges for their roles in conspiracies in which girls, then 14 and 16 years old, were forced into commercial sex acts, said Acting U.S. Attorney Carole S. Rendon, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office, and Lima Police Chief Kevin Martin.
Named in the 15-count indictment are: Megan Hitt, 28; Lorenzo Young, 30, Randy Thompson, 26; Aundre Davis, 34, and Precious Russell, 19.
Two other people -- Shemeric Cook, 29, and Jacqueline Young, 53 -- face charges related to obstructing the investigation.
All the defendants are from Lima, Ohio, except for Hitt, who is from Fort Wayne, Indiana.
The charges include conspiracy to engage in sex trafficking of a minor, transportation of a minor with intent to engage in prostitution, sex trafficking of a minor, obstruction of a sex trafficking investigation, conspiracy to obstruct a sex trafficking investigation and participation in a child exploitation enterprise.
One conspiracy involves Hitt, Young, Thompson and Davis, and took place between November 2015 and January 2016, in which the four conspired to cause girls, aged 14 and 16, to engage in commercial sex acts in Lima and Fort Wayne. They did this by taking and posting sexually explicit photos of the girls on backpage.com, transporting the girls, renting motel rooms for them and negotiating prices, according to the indictment.
Another conspiracy involves Thompson and Russell and took place in November and December 2015 when they caused the then-14-year-old girl to engage in commercial sex acts in Lima. Thompson would receive 50 percent of money paid by the girl’s customers, Russell would receive 25 percent of the money and the girl could keep the remaining 25 percent, according to the indictment.
“This indictment is yet another reminder that human trafficking is all around us,” Rendon said. “It flourishes in plain sight, on the internet and in the motels in our towns. The conduct these defendants engaged in is reprehensible, and they will now be held accountable.”
“These individuals violated the rights of some of our most vulnerable in our community - the children,” Anthony said. “The FBI will continue working with our law enforcement partners to aggressively pursue justice for human trafficking victims and to put their perpetrators behind bars."
“Human trafficking is a devastating crime that must be stopped. It victimizes people within every segment of society throughout our nation,” Martin said. “I want to thank the FBI and U.S. Attorney’s Office for their help in enforcing the law against those who will engage in human trafficking within the Lima community. We are grateful for the cooperative working relationship we have with them and the many other local, state and federal law enforcement agencies that are working together to make human trafficking a thing of the past. The Lima Police Department cannot accomplish this alone.”
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.
This case was investigated by the Federal Bureau of Investigation’s Toledo office and the Lima Police Department. It is being prosecuted by Assistant U.S. Attorneys Alissa M. Sterling, and Daniel R. Hurley.
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.
Four Youngstown men indicted for trafficking crack cocaine; indictment also alleges firearms violationsRead the Press Release
A federal grand jury returned a 15-count indictment charging four Youngstown men with narcotics and firearms violations, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Tawayme Jett, 36; Jamal Pusey, 37; Michael Reynolds, 33, and Olajuwon Perkins, 26, were charged with conspiracy to distribute and distribution of crack cocaine. Jett and Pusey are also charged with being felons in possession of firearms and ammunition.
Pusey maintained two residences in Youngstown for the purposes of selling narcotics. Pusey, Reynolds, Perkins and Jett then used these two residences to store and sell crack cocaine and store firearms, according to the indictment.
Pusey and Jett possessed firearms to protect themselves and their drug proceeds, according to the indictment.
The defendants, between March and June 2015, sold crack cocaine to confidential sources, possessed firearms, ammunition, crack cocaine, digital scales and drug proceeds, according to the indictment.
Pusey and Jett are also charged with being convicted felons who possessed multiple firearms on June 23, 2015.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including each of the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mahoning Valley Law Enforcement Task Force and the U.S. Marshals Fugitive Task Force. 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.
Lima man indicted on child pornography chargeRead the Press Release
An indictment was filed charging Richard Hack, 27, of Lima, with receipt and distribution of material involving the sexual exploitation of children, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
The conduct took place between 2011 and 2015, according to the indictment
If convicted, the defendant sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, in Toledo. The case is being handled by Assistant United States 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.
Former Hudson resident sentenced to nearly seven years in prison for leading marijuana and money laundering conspiracyRead the Press Release
A former Hudson resident was sentenced to nearly seven years in prison for leading a conspiracy that sent marijuana from California to the Cleveland area, then laundered the drug proceeds and sent the money back to California, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
James Sorgi, 35, was sentenced to 80 months in federal prison. He also forfeited more than $86,000 in cash and money orders.
Sorgi operated a drug trafficking organization that shipped marijuana from California to Cleveland. He grew the marijuana in California and also obtained marijuana from other growers. Sorgi then worked with Robert Serina and Stuart Pflaum to direct others to receive multi-pound shipments of marijuana in Ohio and sell it there, according to court documents.
Sorgi, working with Serina, Pflaum and others, then directed people to collect the drug proceeds and make cash deposits into various bank accounts. Sorgi, through Pflaum and Serina, then directed people to convert the cash into money orders and send the money to California, according court documents.
This took place between June 2013 and Februay 2015, according to the indictment.
The case against Serina is pending. Pflaum has pleaded guilty to his role in the conspiracy and is awaiting sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Michelle Baeppler and Margaret Sweeney following an investigation by the Northern Ohio Law Enforcement Task Force and the U.S. Postal Inspection Service. 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.
Charges filed regarding cash bribes and kickbacks between contractors and Cleveland Housing Network official, as well as improper lead abatementRead the Press Release
Criminal charges were filed in federal court alleging cash bribes and kickbacks between contractors and a Cleveland Housing Network official, as well as improper lead abatement practices at several renovation projects, law enforcement officials said.
Named in the four-count criminal information are: James Todt, 49, of Brecksville; Lizandro Orellana, 56, of Cleveland; Chris Peterson, 42, of Macedonia, and Modern Construction Group LLC.
Todt worked at the Cleveland Housing Network between 2005 and 2014, where his duties included supervising inspectors and project managers, as well as awarding CHN contracts on various projects for the non-profit community development organization. Orellana owned and operated Modern Construction Group LLC and Peterson owned and operated Top Notch Construction, according to the information.
Todt corruptly solicited and accepted things of value from Orellana and Peterson between 2009 and 2014. Peterson paid Todt up to $10,000 in cash in exchange for CHN work that Todt awarded to Top Notch, according to the information.
On numerous occasions, Todt provided Orellana with CHN’s internal cost projections for various projects, which were used to evaluate a contractor’s bid.
Orellana paid another person to do $3,650 worth of electrical work at Todt’s home in November 2012. In October 2013, Todt asked Orellana for assistance building a deck and installing windows at his home. Orellana provided a crew of six Modern employees to construct the deck, and directed employees to install seven windows. The labor cost related to the deck and windows was valued at approximately $8,736, according to the information.
In 2012, Peterson repaired the roof of a home in Seven Hills owned by one of Todt’s relatives, and performed repairs on a rental property owned by Todt in Brecksville, according to the information.
Todt also submitted false invoices and caused two checks totaling $15,280 to be deposited into his personal account, according to the information.
Additionally, Orellana had a lead abatement contractor license issued by the Ohio Department of Health, which allowed Modern Construction to bid on lead-based paint abatement projects for CHN homes. These projects often required Modern to gut a portion or all of a home’s interior, including the removal of doors, windows, walls, moldings and sometimes porches. Orellana understood the work was to be done by workers licensed to perform lead-based paint abatement and comply with federal and state standards, according to the information.
Modern Construction was contracted to conduct lead-based paint abatement on several CHN properties between 2010 and 2012. Orellana, due to his workload and to save time, directed employees to gut homes containing lead-based paint. Items and components covered in lead-based paint were removed without following abatement procedures. The employees directed to gut the homes were not licensed to perform lead-based paint abatement, which Orellana knew, according to the information.
“Sadly, cash bribes and free home improvements from contractors looking to get work on taxpayer-supported projects have not been eradicated from Northeast Ohio,” Acting U.S. Attorney Carole S. Rendon said. “Mr. Orellana also showed no regard for his employees, the environment or our community’s general well-being when he ordered items covered in lead paint to be removed and dumped.”
“These individuals defrauded a federal housing assistance program by conspiring to obtain monies and services for their own personal benefit,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “The FBI, along with its partners, will continue to investigate fraud against federally funded programs intended to help those in need.”
“The charges disclosed today prove our continuing resolve to root out fraud and corruption in all forms, especially when the programs involved should have been used to help our neediest families,” said Brad Geary, Special Agent in Charge, the Department of Housing and Urban Development – Office of Inspector General. “It is our continuing core mission to work with our Federal, State, and Local law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to personally benefit from taxpayer-funded grants.
“Lead-based paint in homes continues to pose a public health threat, often to children who may be exposed to it,” said Jeffrey Martinez, Acting Special Agent in Charge of EPA's criminal enforcement program in Ohio. “If the proper abatement procedures are not followed, the problem only becomes worse. EPA’s mission of protecting public health and the environment means we will prosecute and punish those who jeopardize public safety for their own personal gain.”
“Accepting bribes and kickbacks is unacceptable, especially when it involves something as important as lead abatement,” Ohio Attorney Mike DeWine said. “The Ohio Attorney General’s Office helped investigate this case, and we’ll continue to work with our federal, state, and local partners to go after those who commit fraud or other crimes.”
Todt, Orellana and Peterson are named in Count 1 – conspiracy to commit bribery concerning programs receiving federal funds. Count 2 and 3, theft concerning programs receiving federal funds, apply only to Todt. Orellana and Modern Construction are named in Count 4, violation of authorized state lead-based paint program requirements.
This case is being prosecuted by Assistant U.S. Attorney Robert J. Patton and Special Assistant U.S. Attorney Brad Beeson. It comes following an investigation by the FBI, HUD-OIG, U.S. EPA, Ohio EPA, Ohio Bureau of Criminal Investigation, Ohio Department of Health – Environmental Compliance Program and the Cleveland Division of Police.
If convicted, the defendants’ sentences 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.
Akron man indicted for distributing fentanyl that caused fatal overdose last yearRead the Press Release
An Akron man was indicted on federal charges for distributing fentanyl that caused the death of a person in last fall, said Carole Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Jurmaine A. Jeffries, 27, was named in the two-count indictment. He is charged with distribution of fentanyl and possession with intent to distribute fentanyl. The indictment also seeks a sentencing enhancement because the fentanyl Jeffries sold resulted in the death on Sept. 16, 2015, of a person identified as J.H. in Akron, according to the indictment.
"We will continue to work to educate the public on the dangers of opioids and get help for those who want it," Rendon said. "We will also aggressively prosecute those who sell heroin and fentanyl, which have caused so much pain and death in our community."
This case is being prosecuted by Assistant U.S. Attorney Linda K. Barr following an investigation by the Drug Enforcement Administration and Akron Police Department.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the Defendant’s role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Former pastor sentenced to more than five years in prison for having thousands of images of child exploitationRead the Press Release
A former pastor was sentenced to more than five years in prison for receiving material involving the sexual exploitation of children, said Acting U.S. Attorney Carole S. Rendon.
Gerald B. Searle, 51, of Liberty Center, had thousands of images involving child pornography and exploitation on his computer between 2013 and 2015, according to court documents
The investigating agency in this case is the U.S. Postal Inspection Service, with the assistance of the Ohio Bureau of Criminal Investigation and the Erie County Sheriff’s Office. The case is being handled by Assistant United States Attorney Tracey Tangeman.
Five Cleveland mail carriers indicted for conspiring to deliver shipments of marijuanaRead the Press Release
Five U.S. Postal carriers were charged with conspiring to distribute marijuana after helping arrange shipments of marijuana shipped via the U.S. mail and gave them to another drug dealer, said Carole S. Rendon, Acting U.S. States Attorney for the Northern District of Ohio
Named in the 11-count indictment are Aaron L. Kelly, 28, Dartagnan B. Mitchell, 28, Tamika S. Embry, 32, Devon Blake, 25 and Rashon Blake, 25, all of Cleveland.
Count 1 of the indictment charges all five defendants with conspiracy to possess with the intent to distribute a controlled substance between May and July 2015. Count 2 through 6 charge the defendants individually with public corruption violations for accepting things of value in return for official actions in relation to their jobs. Count 7 through 11 charge the defendants individually with possession with intent to distribute marijuana.
The five postal carriers informed Kevin Collins of their work schedules and addresses on their respective routes. Collins then arranged for packages of marijuana to be shipped to addresses on the routes of the defendants and sent them when he knew the defendants were scheduled to be working, according to the indictment.
Blake, Blake, Embry, Kelly and Mitchell took the parcels containing marijuana and, instead of delivering them to the listed addresses, gave the packages directly to Collins. They often improperly scanned or did not scan the marijuana packages in an effort to disguise the package’s delivery status, according to the indictment.
Collins paid cash to the defendants in return for their actions, according to the indictment.
Collins has pleaded guilty to charges of conspiracy to possess with intent to distribute marijuana and using firearm during drug trafficking crime. He is awaiting sentencing.
“These mail carriers used their positions not to serve the public, but to be spokes in a drug-trafficking organization,” Rendon said. “They violated the trust of the public and their employer, and now must answer to criminal charges.”
U.S. Postal Service Office of Inspector General Special Agent in Charge of the Eastern Area Field Office Monica S. Weyler, said: “The vast majority of the nation’s 400,000 postal employees are honest, hard-working individuals. It is troubling when a few of those employees choose to violate the trust given to them to use their positions for personal gain. These investigations show that USPS OIG special agents and postal inspectors will work diligently to find those few employees who choose to deliver drugs instead of the mail, and will seek their criminal prosecution and removal from the Postal Service. The employees named in these charges threw away their federal career for a few hundred dollars. Other employees who are engaging in this conduct should ask themselves, is it worth it? To report postal employee misconduct or criminal activity, contact special agents at 888-USPS-OIG or www.uspsoig.gov.”
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the Defendant’s role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Matthew B. Kall and Daniel J. Riedl. The investigation was conducted by the U.S. Postal Inspection Service and Office of Inspector General, Cleveland.
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 from Northeast Ohio indicted for straw purchase of firearmRead the Press Release
Two people from Northeast Ohio were indicted for their actions related to the straw purchase of a firearm, said Carole Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Named in the three-count indictment are Malcolm Roberson, 26, of Warrensville Heights, and Chimere M. Turner, 32, of Cleveland.
Count 1 charges that Roberson and Turner engaged in a straw purchase of a Jimenez Arms 9 mm pistol on Feb. 20 at Taylor Firearms LLC in Vermillion when Turner said she was the buyer of the firearms when the actual buyer of the firearm was Roberson. Count 2 charges Roberson with being a felon in possession of a firearm, of having the 9 mm pistol despite a 2011 conviction for assault. Count 3 charges Turner with making false statements following being served a subpoena.
This case is being prosecuted by Assistant U.S. Attorney Benedict Gullo following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendants’ prior criminal records (if any), the defendants’ 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.
Cleveland man faces drug and firearms chargesRead the Press Release
A Cleveland man was indicted in federal court for possessing with intent to distribute crack cocaine and being a felon in possession of a firearm, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Juan J. Hiraldo, 26, possessed approximately 26 grams of cocaine base (crack) and a Kahr .40 Caliber pistol with ammunition on May 3. Hiraldo had previously been convicted ason and domestic violence in Cuyahoga County Court of Common Pleas, according to the indictment.
The case is being prosecuted by Assistant United States Attorney Marisa T. Darden following an investigation by the Lakewood Police Department and the Northern Ohio Law Enforcement Task Force.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Bowling Green man charged with conspiracy and wire fraudRead the Press Release
A criminal information was filed charging John E. Moon, 69, of Bowling Green, with conspiracy and wire fraud, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
Moon owned AlphaCare Services Inc. (ACS) and served as treasurer of the Construction Contractors Employer Group LLC (CCEG). CCEG was made up of general contractors from Northwest Ohio and served its members by collecting, processing and paying their employment expenses, such as payroll and worker’s compensation premiums, according to the information.
Moon embezzled money CCEG from 2002 through 2016. In one example, Moon made a wire transfer of $15,624 from a CCEG account to an ACS account. Then Moon and others wrote checks from the ACS account for their own personal benefit, according to the information.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation in Sandusky. The case is being handled by Assistant United States Attorney Gene Crawford.
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.
Three from Northeast Ohio indicted for distributing cocaineRead the Press Release
Three people from Northeast Ohio were arrested this morning for their roles in a cocaine distribution conspiracy, said Acting U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Named in the nine-count indictment are: Christopher Fitzgerald, 41, of Bedford Heights; Rashard Smith, 42, of Northfield, and Chiquita Anderson, 42, of Bedford.
Fitzgerald and Smith worked as couriers at a domestic shipping company and used their positions to ship kilograms of cocaine from California to Cleveland. Anderson maintained a premises to assist in the cocaine distribution, according to the indictment.
Prosecutors are seeking to forfeit the money involved in the alleged crime.
This case is being prosecuted by Assistant U.S. Attorneys Margaret Sweeney and Michelle M. Baeppler following an investigation by the Northern Ohio Law Enforcement Task Force.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendants’ prior criminal records (if any), the defendants’ 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.
Mansfield woman indicted for stealing $339,000 from her employerRead the Press Release
A grand jury returned an indictment charging Yatkia Wallace, 42, of Mansfield, with one count of embezzlement in connection with health care, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
The indictment alleges that Wallace embezzled $339,198 from her former employer, D & I Associates and converted it for her own personal use.
If convicted, the defendant’s sentence will be determined by the dourt after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Carmen E. Henderson following an investigation by 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.
Olmstep Twp. woman charged with embezzling $270,000 from bankRead the Press Release
A woman from Olmsted Township was charged with embezzling from a bank, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
Betti J. Haviland, 37, of Olmsted Township, Ohio, is charged with theft, embezzlement, or misapplication by a bank officer or employee. Specifically, the information alleges that from September 28, 2007 through April 3, 2015, Haviland stole $270,685 from Lorain National Bank, where she was employed as a vault teller.
The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following an investigation by the Federal Bureau of Investigation.
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.
Jamaican man charged with illegally reentering the U.S.Read the Press Release
A federal grand jury returned an indictment charging Jamaican citizen Trevor Arthur Junior Campbell, 41, for re-entering the United States illegally after being deported to Jamaica, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Campbell was found in the United States after being previously deported on August 11, 1997. Campbell previously entered the United States and was deported in 1997 after being convicted of an aggravated felony and was later found in Cleveland, according to the indictment.
Assistant United States Attorney Karrie D. Howard is prosecuting the case following an investigation by the United States Immigration and Custom Enforcement, Department of Homeland Security.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Fredericktown man charged wtih robbing a pharmacyRead the Press Release
A federal grand jury returned a one-count indictment charging Donald Boozer, 37, of Fredericktown, with a pharmacy robbery, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on or about August 24, 2014, Boozer took a controlled substance from a Rite Aid pharmacy in Uhrichsville, Ohio.
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 Drug Enforcement Administration and the Uhrichsville 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.
Child exploitation charges filed in several cases as part of Project Safe ChildhoodRead the Press Release
Criminal charges were filed in federal court against two men for sexually exploiting children, law enforcement officials said.
Charges in the cases, which are not related, coincide with the 10th anniversary of Project Safe Childhood, the Justice Department’s program to combat the sexual exploitation of children, both online and in person.
Eric Shotwell, 41, of Minerva, was charged with crossing state lines to engage in sexually explicit conduct with a minor after police recovered a missing 14-year-old Missouri girl at his home in Stark County.
The girl was reported missing on March 11. Police determined the girl was using the “TextNow” app on her phone and traced it to Shotwell’s home on West 1st Street. The girl was recovered on March 17 and Shotwell was arrested, according to court documents.
The girl told investigators she met Shotwell on a dating site she was on to make new friends. She texted with Shotwell for two months before he wanted to meet in person. She stated Shotwell provided nude photos of himself and she then sent nude photos of herself. He then picked her up at a pizza shop in Missouri. They returned to Ohio and Shotwell engaged in sexual acts with the girl even though he knew she was 14, according to court documents.
The girl told investigators that Shotwell became violent at his home, punching her, slapping her, pushing her into a wall and calling her a “stupid bitch” and “stupid whore”. He placed chains around feet and neck, tightening the chains until she passed out. Investigators found chains in Shotwell’s bedroom when they searched his home, according to court documents.
In another case, James D. Sullivan, 58, of Cleveland, was charged with one count of attempted production of child pornography and one count of possession of child pornography. Federal agents searched his computer after he was arrested for filming girls and women in the shower at Geneva State Park on July 18. The search revealed Sullivan used the laptop to view child pornography and images of children being sexually assaulted, according to court documents.
At the time of his arrest, Sullivan was on probation after having served more than 25 years in state prison for raping a 12-year-old girl, photographing the act, and assaulting other child victims, according to court documents.
A grand jury this week indicted Richard Purnell, 55, of Parma, on one count of sex trafficking of children. Purnell knowingly solicited a minor to engage in commercial sex acts between October 2015 and May 6, 2016. He sexually assaulted a 13-year-old girl who was advertised on the web site backpage.com. These assaults continued after the girl turned 14, according to court documents.
Experts offer the following tips for parents and guardians about how to help their children avoid being exploited:
- Talk to your kids about the topic from an early age and establish open lines of communication.
- Know what your child is looking at, and who they’re talking to.
- Think beyond “stranger danger” – as our relationships are more social-media focused, some kids don’t think of someone online as a stranger, even if they’ve never met in person.
- Parents should not be afraid to technology. Educate yourself about apps like kik and whisper, which allow users anonymity and don’t verify ages. And find out your child is using.
- Monitor your children’s use of the internet and their phone; keep your computer in an open, common room of the house.
- Tell your kids why it’s so important not to disclose personal information online.
- Check your kids’ profiles and what they post online.
- Report inappropriate activity to the web site or law enforcement immediately.
- Explain to your kids that once images are posted online they lose control of them and can never get them back.
- Only allow your kids to post photos or any type of personally identifying information on websites with your knowledge and consent.
- Trust your gut and parental intuition.
For more information for both parents and children about how to avoid being exploited, go to: www.justice.gov/ndoh/defending-children, www.justice.gov/psc, or www.fbi.gov/about-us/investigate/vc_majorthefts/cac
Federal, state and local law enforcement regularly investigate and prosecute child exploitation cases.
This morning in Toledo, former Northwood High School teacher Frank Stefan, 59, was sentenced to 10 years in prison for possession of child pornography. Stefan had on his computers nearly 2,000 videos and images of children being raped and sexually assaulted by adults. He also admitted that he had an inappropriate sexual relationship with a 16-year-old student in 2005 and attempted to have a relationship with another student during the 2009-10 school year, according to court documents.
David Guevara, Sr., 35, of Youngstown, was charged Wednesday via criminal information with transportation of a minor to engage in illegal sexual activity. Guevara met a 15-year-old girl last summer. He engaged in a sexual relationship with the minor and traveled with her to Philadelphia, even though he knew she was just 15 years old. Guevara stated that it was his intent to have a child with the minor and to move her and the baby to Mexico, according to court documents.
“These are the latest in a steady stream of cases in which people exploit our children,” said Acting U.S. Attorney Carole S. Rendon. “Law enforcement will continue to do all it can to lock up these predators. Parents, guardians and relatives need to do all they can to know who children are communicating with, whether it’s over their phones, on their computers on in person.”
“Child predators, like Eric Shotwell, build trust through coercion techniques to ultimately satisfy their perverse, criminal desires,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The FBI commends the Great Plains, Missouri, and Minerva Police Departments for their swift efforts in rescuing this young girl, and the Canton Police Department for their hard work on this case. The FBI will continue efforts of supporting and collaborating with our law enforcement partners in order to educate and protect our children.”
“Sexual exploitation of children is an alarming concern in our society,” said Secret Service Special Agent in Charge of the Cleveland Field Office, Craig Wisniewsky. “The Secret Service is committed to work closely with the National Center for Missing and Exploited Children and our law enforcement partners to identify and prosecute these predators.”
“The Stefan case is particularly troubling because of the defendant's prior position of trust with children,” said Marlon Miller, Special Agent in Charge of HSI Detroit. “HSI actively works with our law enforcement partners in our shared fight against those who sexually exploit children. Removing these predators from our communities and bringing them to justice is a responsibility we take very seriously. We applaud the court's significant prison sentence.”
“The law enforcement partnership to protect children from predators cuts across all jurisdictional lines because we all are deeply committed to our mission,” said Holly Welsh, chief prosecutor of the Internet Crimes Against Children Task Force. “Our Ohio Internet Crimes Against Children Task Force involves hundreds of police agencies and prosecutors around the state, it receives significant funding from the Department of Justice, and it works hand in hand with the FBI and federal prosecutors to root out and punish those who exploit children. We also work on the prevention side to help parents, teachers and children recognize the dangers that of the Internet and use it safely.”
Shotwell is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the FBI. James Sullivan is being prosecuted by Assistant U.S. Attorney Carol Skutnik following an investigation by the United States Secret Service and Ohio State Highway Patrol. Purnell is being prosecuted by Assistant U.S. Attorney Bridget Brennan following an investigation by the FBI. Stefan was prosecuted by Assistant U.S. Attorney Tracey Tangeman following an investigation by Homeland Security Investigations. Guevara is being prosecuted by Assistant U.S. Attorney Benedict Gullo following an investigation by the FBI, the Mahoning County Sheriff’s Office and the Youngstown Police Department.
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.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any; their 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, it will be less than the maximum.
California man charged with applying for passport with false identityRead the Press Release
A federal grand jury returned a two-count indictment charging Erwin Mazariegos, Jr., 33, of Los Angeles, with possessing and using a fraudulently obtained State of Ohio identification card, in the name of another person, in an attempt to obtain a U.S. passport, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Mazariegos knowingly transferred, possessed and used, without lawful authority, the identification of another to make false statements in an application for a U.S. passport. Mazariegos, Jr., attempted to obtain the passport from a Post Office in Warren, Ohio, according to the indictment.
Assistant United States Attorney Karrie D. Howard is prosecuting the case, following an investigation by the U.S. Bureau of Diplomatic Security.
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.
Akron man sentenced to 12 years in prison for enticement, possessing videos of child rapeRead the Press Release
An Akron man was sentenced to more than 12 years in prison for sending pornography to what he believed to be a 12-year-old girl and attempting to coerce her into illicit sexual activity, said Acting U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
David T. Beiter, 55, of Akron, was previously found guilty of four counts: enticement, transfer of obscene material to a minor, possession of child pornography and receipt and distribution of minors engaged in sexually explicit conduct.
Beiter knowingly used a device connected to the internet, to attempt to persuade, induce, entice and coerce a 12-year-old girl to engage in illegal sexual activity with him. On Feb. 9, 2015, Beiter used a device connected to the Internet to knowingly attempt transfer obscene matter to a 12-year‑old girl. From February 2014 through March 2015, Beiter knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. On March 20, 2015, Beiter possessed a computer that contained videos of the raping and sexual abuse of children, according to court documents.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Akron, Ohio and Richmond, Virginia Offices of the Federal Bureau of Investigation, and the Middlesex County (Virginia) Sheriff’s Office.
Copley man sentenced to prison for tax violationsRead the Press Release
A Copley man was sentenced to more than two years in prison for conspiring to defraud the United States and related crimes, said Acting U.S. Attorney Carole Rendon, and Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service – Criminal Investigations.
Lawrence Tipton, 48, was sentenced to 25 months in prison and ordered to pay more than $500,000 in restitution to the Internal Revenue Service.
Ebony Brown, 41, of Stone Mountain, Georgia, was sentenced to more than four years in prison and ordered to pay nearly $440,000 in restitution.
12-count federal indictment was unsealed today charging Lawrence E. Tipton, 48, Angela G. Tipton, 46, both of Copley, and Ebony Brown, 41, of Stone Mountain, Georgia, with conspiracy to defraud the United States of America, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Lawrence and Angela Tipton, 46, also of Copley, conspired to evade the payment of assessed taxes between 2003 and 2014. Their conduct involved failing to report income, creating various business entities to hide their income and assets from the Internal Revenue Service, according to the indictment.
Brown conspired to distribute cocaine she acquired in Texas and Florida and sold in Ohio, according to court documents.
Angela Tipton was sentenced to four months of home confinement and ordered to pay more than $500,000 in restitution.
The investigation preceding the indictment was conducted by the Internal Revenue Service and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorneys Robert E. Bulford and Samuel A. Yannucci.
Youngstown man sentenced to life in prison for raping childRead the Press Release
A Youngstown man was sentenced to life in prison after he was convicted of crossing state lines to rape an 11-year old, law enforcement officials said.
Iraephraim Underwood, 59, was convicted following a jury trial of one count of crossing a state line to engage in a sexual act with a person who had not attained the age of 12 years old and one count of crossing a state line to engage in a sexual act with a person who had not attained the age of 18 years old.
This case was prosecuted by Assistant U.S. Attorneys Michael A. Sullivan and Benedict Gullo following an investigation by the Federal Bureau of Investigation, the Youngstown Police Department and the Boardman Police Department.
Parma man charged with sex trafficking of childrenRead the Press Release
Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Division, Northern District of Ohio, and Acting U.S. Attorney Carole S. Rendon announced the arrest of Richard Purnell, 54, of Parma.
Purnell has been charged in federal court with Sex Trafficking of Children, Title 18, U.S.C. Section 1591.
In November 2015, the FBI’s Child Exploitation Task Force became aware of an online advertisement for a “lovely college girl” who has a “thing for older men.” Photos were attached to this advertisement and appeared to indicate a female under the age of 18. An investigation ensued and agents confirmed that the “lovely college girl” was in fact 14 years of age, according to court documents.
A federal arrest warrant was obtained on May 6, 2016 and Purnell was taken into custody by the FBI’s Child Exploitation Task Force that evening at approximately 8:30pm in Parma, Ohio. The Child Exploitation Task Force is comprised of the Adult Parole Authority, Cleveland Metro Housing Authority, Cleveland Police Department and Cuyahoga County Sheriff’s Office. The Parma Police Department provided substantial assistance to this successful investigation and arrest.
Purnell has been held in the Parma jail since his arrest Friday night. He is scheduled to appear before federal Judge Parker today at 2:30 p.m.
A complaint is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any; their 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, it will be less than the maximum.
Any questions regarding this news release can be directed to SA Vicki D Anderson at the Cleveland Office of the FBI, 216-522-1400 or [email protected].
Four Ohio men convicted of defrauding 500 investors out of $10 millionRead the Press Release
Four Ohio men were convicted for conspiring to defraud investors out of more than $10 million by selling unregistered securities and making several misrepresentations to investors about the product they purported to develop, law enforcement officials said.
Kenneth Jackson, 59, of Glenmont; William Schureck, 81, of Lexington; Dennis Deciancio, 73, of Macedonia, and Daryl Dane Donohue, 67, of Mansfield, were convicted by a jury following a four-week trial. They are scheduled to be sentenced on Sept. 1.
The men were convicted on counts including conspiracy to commit mail and wire fraud, conspiracy to launder money, mail fraud, wire fraud, money laundering, making false statements and other charges.
“More than 500 people were scammed out of money by this group,” said Acting U.S. Attorney Carole S. Rendon. “Retirements were stolen and dreams were destroyed by their fraudulent conduct.”
“These four individuals conspired to misrepresent a product to their investors in order to make a profit,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue efforts to bring to justice those that have duped investors out of their hard-earned money.”
"These defendants built a house of cards laced with a web of financial lies. Well, the underlying structure fell apart and exposed these individuals for who they really are, thieves," said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "Combining the financial investigative expertise of the IRS with the skills and resources of the FBI, the Food and Drug Administration and the U.S. Attorney's Office makes a formidable team for combating major, greed-driven crimes."
All four men were affiliated with Medical Safety Solutions, or MSS, a company Jackson founded in 2007 which operated out of Mansfield and had a purported “research and development center” at Jackson’s home in Glenmont. Jackson held the title of Director of Research and Development at MSS. Schureck co-founded the company held the title of Chief Executive Officer at MSS. Deciancio co-founded the company and attended trade shows on the company’s behalf. Donohue was a longtime associate of Jackson who communicated with shareholders of MSS and held himself out as an “FDA consultant” hired by the company for the sole purpose of obtaining Food and Drug Administration approval for the Sharps Terminator, according to trial testimony.
The founders of MSS held the company out as an entity created to develop, market and sell a hypodermic needle destruction device they called the Sharps Terminator. The Sharps Terminator required premarket approval from the FDA before it could be sold in the United States. Jackson and Schureck filed a provisional application for a patent on the Sharps Terminator around April 2007 but did not file an actual patent application until September 2011. MSS filed a premarket approval application for the Sharps Terminator in October 2012. Between 2007 and May 2013, the defendants were engaged in the unregistered sale of securities. They did this by seeking out individuals to buy private shares of stock in MSS, but those shares were not registered with the Securities and Exchange Commission, according to trial testimony.
They defrauded investors by inducing them to buy stock and making false and fraudulent misrepresentations about MSS and the Sharps Terminator, including: that MSS had submitted a premarket approval application when it had not; that FDA approval of the Sharps Terminator was forthcoming or imminent when MSS had not even initiated the approval process; that the FDA had approved the Sharps Terminator when it had not; that the product was “market ready” that was ready for mass production when it was not, and other misrepresentations, according to trial testimony.
To make MSS appear functional and the Sharps Terminator market ready, the defendants took current and prospective investors to MSS’s “R&D facility” and showed them parts, a small number of assembled Sharps Terminator units, and large numbers of Sharps Terminator boxes, many of which were really empty, according to the indictment.
More than 500 investors were defrauded as part of the scheme. They lost more than $10 million between 2007 and 2013, according to trial testimony and court documents.
Jackson and Schureck transferred the money to cover other expenses, and Jackson gambled more than $3.3 million at Mountaineer Casino between 2009 and 2013, according to the court documents.
This case is being prosecuted by Assistant U.S. Attorneys Rebecca Lutzko and Adam Hollingsworth following an investigation by the Federal Bureau of Investigation, the Internal Revenue Service—Criminal Investigations and the Food and Drug Administration.
Westlake father and son sent to prison for decade-long food stamp fraudRead the Press Release
Two Westlake men were sentenced to prison and ordered to repay $931,045 for illegally redeeming food stamps for more than a decade, said Acting U.S. Attorney Carole Rendon.
Mahmoud Zayed, 61, was sentenced to 30 months in prison. His son Ashraf Zayed, 41, was sentenced to 37 months in prison. Both previously pleaded guilty to conspiracy to defraud the United States, food stamp fraud and unlawful food stamp redemptions.
The Zayeds fraudulently applied for a food stamp vendor license for their convenience store, Al-Manar Market, located on West 117 Street in Cleveland. Mahmoud Zayed had prior state felony convictions related to food stamp fraud, but he and his co-conspirators hid this fact from the U.S. Department of Agriculture by means of a proxy food stamp application submitted by a relative of the Zayeds. This application claimed that Mahmoud Zayed’s relative was the owner of Al-Manar Market but neglected to state that Mahmoud Zayed would be involved in the operations of the market. The application also failed to state that Mahmoud Zayed had prior criminal convictions for food stamp trafficking, which would have barred him from future participation in the food stamp and SNAP programs, according to court documents.
The Zayeds improperly trafficked food stamp and SNAP benefits in exchange for ineligible non-food items such as cash, hookah tobacco, pipes and accessories, and calling cards, in violation of the program’s rules and regulations. This took place between 2001 and 2013, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys Om Kakani and Miranda Dugi, following an investigation by the United States Department of Agriculture, Office of Inspector General.
Cleveland woman charged with filing false tax returns of friends and relatives, fraudulently claiming $131,000Read the Press Release
A Cleveland woman was named in a 21-count indictment, accused of filing false income tax returns on behalf of friends and relatives and fraudulently claiming more than $131,000, said Acting U.S. Attorney Carole Rendon and Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Cincinnati Field Office.
Monique Kirk, 39, held herself out as a tax preparer and offered to prepare returns from friends and relatives. Kirk used the personal information they provided to file false and fictitious returns, including false wage income and tax credit information, many for claimants who earned little or no money, according to the indictment.
Kirk requested some of the refunds be paid by direct deposit into bank accounts in the name of third parties that she controlled. Kirk converted his money to her own personal use, according to the indictment.
Kirk filed 21 false tax returns between 2012 and 2014 in which she claimed approximately $131,871 in tax refunds to which neither she nor the claimants were entitled, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the 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.
Toledo man faces firearm chargeRead the Press Release
An indictment was filed charigng Antwuan T. Lawson, 35, of Toledo, with being a felon in possession of a firearm, 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 investigating agency in this case is the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being handled by Assistant United States Attorney Thomas P. Weldon.
This case is being prosecuted as part of "Project Safe Neighborhoods," a gun violence reduction program administered by the Department of Justice, U.S. Attorney's Office for the Northern District of Ohio. The program targets armed criminals for federal prosecution.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Man indicted for two Canton bank robberiesRead the Press Release
A man was indicted for robbing two Canton banks last month, Acting U.S. Carole Rendon said.
Richard Ricky Hampton, 58, robbed the First Merit Bank on Atlantic Boulevard of $4,820 on April 8. Three days later, he robbed the Key Bank on Cleveland Avenue South of $2,183, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Linda Barr following an investigation by the FBI and the Stark County Sheriff’s Office.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland men indicted for cocaine conspiracyRead the Press Release
Two Cleveland men were indicted for conspiring to possess with intent to distribute cocaine, said Acting U.S. Attorney Carole S. Rendon.
Indicted are Noel Del Valle Cruz, 31, and Carlos Juan Torres Mendoza, 36.
They are accused of conspiring to distribute 500 grams or more of cocaine between January and April, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the U.S. 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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man indicted on firearms and assault chargesRead the Press Release
A federal grand jury returned a three-count indictment charging Maurice J. Sinkfield, 33, of Cleveland, with assaulting federal officers as well as firearms offenses, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
The indictment alleges that Sinkfield, who was wanted on an arrest warrant, assaulted a Deputy U.S. Marshal and a Special Deputy U.S. Marshal with a motor vehicle. Sinkfield also possessed a firearm and ammunition despite prior convictions for robbery and domestic violence that precluded him from having firearms.
Assistant United States Attorney Megan R. Miller is prosecuting the case following an investigation by the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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.
California man indicted for bringing a kilo of methamphetamine to ClevelandRead the Press Release
A federal grand jury returned a two-count indictment charging a California man with trafficking methamphetamine, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and U.S. Drug Enforcement Administration Special Agent in Charge Timothy J. Plancon.
George Schepp, 53, brought in more than one kilogram of methamphetamine for distribution in the Cleveland area in April. Based on the methamphetamine’s purity, Schepp trafficked into Cleveland at least 10,000 doses of methamphetamine.
Metroparks rangers seized methamphetamine, cocaine, ecstasy, LSD, GHB and marijuana during a traffic stop earlier this year. That led to information that Schepp regularly brings two to three pounds of methamphetamine to Cleveland from the Los Angeles area. Schepp normally drove the methamphetamine to Cleveland but sometimes flew it in, according to court documents.
Schepp was arrested on April 10 at the baggage claim area at Cleveland Hopkins Airport. This happened after a drug dog alerted to the presence of narcotics on Schepp’s suitcase, according to court documents.
“This defendant brought drugs worth tens of thousands of dollars into our community from California,” Rendon said. “The law enforcement agents who worked this case should be credited for turning routine police work into a major drug bust.”
Plancon said: “Methamphetamine is a dangerous and addictive drug. Thanks to good investigative work and cooperation between our law enforcement partners, we have successfully halted this individual from regularly importing large amounts of this addictive drug into Ohio to be distributed and ultimately consumed.”
“We are pleased to have launched an investigation, and worked side-by-side with our law enforcement partners at the DEA, to help disrupt the supply of methamphetamine to Greater Cleveland,” said Chief Daniel J. Veloski of the Cleveland Metroparks Rangers. “Through collaborative efforts such as this, we are able to significantly curtail drug trafficking and safeguard our communities.”
Assistant U.S. Attorney Matt Cronin is prosecuting the case following an investigation by the Drug Enforcement Administration, the Cleveland Metroparks Ranger Department and the Lakewood Police Department.
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.
Grafton couple who owned head shop chain sentenced to prison for distributing synthetic cannabinoids known as spiceRead the Press Release
A Grafton couple who owned a chain of head shops were sentenced to prison for conspiring to distribute synthetic cannabinoids known as spice, law enforcement officials said.
Sean Lightner, 41, was sentenced to three years in prison while Sherry Lightner, 40, was sentenced to two years in prison.
Nathan Albright, 30, of Glendale, Arizona, was sentenced earlier this month to two years in prison.
All three previously pleaded guilty to one count each of conspiracy to possess with intent to distribute a controlled substance analogue, as well as engaging in monetary transactions in property derived from specified unlawful activity.
“This couple operated stores throughout the state to sell dangerous synthetic drugs to anyone who walked through the front door,” said Acting U.S. Attorney Carole Rendon. “They knew what they were doing was illegal.”
"This is an important victory for the residents of Northern Ohio. Not only are criminals going to jail for their crimes, but the government has seized a significant portion of the illegal proceeds through asset forfeiture,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations.”
Dale Drummond, 41, of Cleveland, and Mark Picard, 34, of Whittier, Calif., have pleaded guilty to their roles in the case and are awaiting sentencing.
Synthetic cannabinoids are a large family of chemically unrelated structures functionally similar to THC. Synthetic cannabinoids may contain Schedule I controlled substances or controlled substance analogues and have purported physchotropic effects when smoked or ingested.
The Lightners operated a chain of head shops -- retail stores specializing in drug and smoking paraphernalia -- doing business as Twilight Boutique, where they sold synthetic cannabinoids along with accessories such as bongs, pipes and rolling papers, according to court documents.
They franchised the Twilight Boutique on Madison Avenue in Lakewood to Drummond for a percentage of the store’s monthly revenue. Drummond also sold synthetic cannabinoids from the store, according to the court documents.
The Lightners expanded their business to include several locations in Ohio after they began selling synthetic cannabinoids. They controlled Twilight Corp., located on Royalton Road in Grafton, and the Twilight Boutique stores located on State Route 43 in Streetsboro, Cleveland Road West in Sandusky, Pearl Road in Brunswick, North Abbe Road in Elyria, Lorain Road in Fairview Park, Whipple Avenue in Plain Township, North Court Street in Athens, Midway Plaza in Tallmadge, South Alex Road in West Carrollton, West Fourth Street in Ontario and Clinton Plaza Drive in Oneonta, N.Y., according to court documents.
The Lightners presented laboratory reports to others, including employees, alleging that the synthetic cannabinoids sold in the Twilight Boutique stores did not contain controlled substances or controlled substance analogues in an effort to give the appearance that the synthetic cannabinoids were legal when the Lightners knew they were illegal, according to court documents.
Albright manufactured and sold synthetic cannabinoids through his company, Desert Distribution, LLC and Albright and Picard sold synthetic cannabinoids through their company, Royal Dutch, LLC.
Prosecutors forfeited nearly $400,000 in cash as well as several firearms and automobiles as part of the case.
This case is being prosecuted by Assistant United States Attorneys Carmen Henderson, Teresa Dirksen and Christian M. Stickan following an investigation by the Drug Enforcement Administration -- Tactical Diversion Squad, Internal Revenue Service -- Criminal Investigations, Lorain County Drug Task Force, Medina County Drug Task Force, Portage County Drug Task Force, Westshore Enforcement Bureau, MEDWAY Drug Enforcement Agency, METRICH Enforcement Unit, Cuyahoga County Sheriff’s Office, Linndale Police Department, Lakewood Police Department, Cleveland Police Department, Ontario Police Department, Sandusky Police Department, Ohio HIDTA and the Ohio State Patrol.