Northern District of Ohio
Press releases recorded for this federal judicial district.
Medina man charged with sending nearly a half-million dollars from cocaine conspiracy through U.S. mailRead the Press Release
A Medina man was named in a 13-count federal indictment, charged with using the U.S. mail to transfer nearly a half-million dollars related to a cocaine distribution conspiracy, said Acting U.S. Attorney Carole S. Rendon.
Nelson Figueroa, 35, is accused of mailing U.S. currency 13 times in July and August 2015. The total amount of currency mailed is approximately $456,770, 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. Attorney Margaret Sweeney following an investigation by the U.S. Postal Inspection Service.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Youngstown man charged with robbing bank in CampbellRead the Press Release
A federal grand jury returned a one-count indictment charging Orlando Popa, 26, of Youngstown, with bank robbery, said Acting U.S. Attorney Carole S. Rendon.
The indictment alleges that on or about February 1, 2016, Popa robbed the Huntington Bank, in Campbell, Ohio, of approximately $1,000.
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 Campbell Police Department, the Federal Bureau of Investigation and the FBI Violent Crimes Task Force. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two men charged with credit card fraudRead the Press Release
A two-count indictment was filed charging two men with crimes related to counterfeit credit cards, said Acting U.S. Attorney Carole S. Rendon.
Luis Diaz-Cordova, 43, of Phoenix, and Yandy Martinez-Guerra, 25, if Miami, were both indicted on one count each of possession of at least 15 unauthorized access devices (credit cards) and trafficking in unauthorized access devices.
This case is being prosecuted by Assistant U.S. Attorneys Megan Miller and Robert Kern following an investigation by the Bureua of Immigration and Customs Enforcement.
If convicted, their sentence will be determined by the court after review of factors unique to this case, including prior criminal records, if any, their 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.
Tax charges added to conspiracy involving undocumented workers at Akron restaurantRead the Press Release
A 13-count superseding indictment was unsealed in which tax charges were added to a conspiracy involving harboring undocumented and illegal aliens in relation to their operation of a restaurant in Akron, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio
Named in the indictment are Chau Fang Lam, 57; Rui Xu, 28; Xin Hsu, 34, and Zhou Qiang Zou, 33, all of Akron. Added to the indictment is Yuan Lin, 24, of Fairlawn.
Lam, Xu, Hsu, and Zou owned and operated the Royal Buffet and Grill restaurant in the Chapel Hill area of Akron, Ohio. Lam, Xu, Hsu, and Zou conspired to harbor and harbored at least 10 undocumented workers for the purpose of commercial advantage and private financial gain. The conspiracy included employing the undocumented workers at the Royal Buffet and Grill, where they worked for below minimum wage or only for tips, according to the indictment.
The defendants also housed the undocumented worker at one of their residences on Annapolis Avenue in Akron and transporting them to and from the Royal Buffet and Grill as part of the conspiracy. At one time, Lam, Xu, Hsu, and Zou housed as many as 14 undocumented workers inside a single-family resident on Annapolis Avenue, according to the indictment.
Count 1 charges Lam, Xu, Hsu, and Zou with conspiracy to harbor illegal aliens, Count 2 charges Lam with harboring illegal aliens at her residence on Annapolis Avenue. Count 3 charges Xu with harboring illegal aliens at his residence on Annapolis Avenue. Count 4 charges Hsu and Xu with harboring illegal aliens by permitting them to be transported to and from their work at the Royal Buffet and Grill in their 2006 Dodge Caravan.
Lin also operated the Royal Buffet and Grill. Counts 5 alleges the defendants conspired between 2002 and 2013 to defraud the government by impeding the collection of federal taxes. They did this by not reporting the majority of cash receipts on their taxes, according to the indictment.
Counts 6 through 13 relate to the filing of false tax returns.
The indictment also seeks to seize more than $92,000 in U.S. currency seized as part of the investigation.
The case is being prosecuted by Assistant U.S. Attorney Teresa Riley following an investigation by the U.S. Department of Homeland Security Investigations and the Internal Revenue Service – Criminal Investigations.
If convicted, their sentence will be determined by the court after review of factors unique to this case, including prior criminal records, if any, their 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.
Two sent to prison for stealing government assistanceRead the Press Release
A Cleveland woman was sentenced to prison for collecting her deceased mother’s Supplmental Security Income benefits for more than 30 years, said Acting U.S. Attorney Carole S. Rendon.
Barbara J. Clark, 63, was sentenced to six months of incarceration and ordered to pay $188,973 in restitution to the Social Security Administration.
Clark pleaded guilty last year to a one-count information for theft of public money. Clark began stealing her mother’s SSI benefits after she died in June 1983, and she continued to withdraw money from their shared account until she was caught in August 2014. The Social Security Administration discovered Clark’s mother’s death through the Medicare Non-Utilization Project, according to court documents.
In an unrelated case, Kathryn Pulley, 60, of Garfield Heights, was sentenced to eight months in prison for stealing more than $58,000 in SSI benefits.
Pulley pleaded guilty last year to a one-count information for theft of public money. She concealed her marriage and cohabitation with her husband from the Social Security Administration in order to receive benefits to which she was not entitled. From June 2007, and continuing until April 2015, she fraudulently received $58,033, which she was ordered to repay in restitution.
Both cases were prosecuted by Special Assistant U.S. Attorney Lisa J. Sanniti following investigations by the Social Security Administration Office of Inspector General.
Painesville man indicted for robbing Mentor bankRead the Press Release
A federal grand jury indicted Myron A. Francis, 63, of Painesville, for robbing a bank in Mentor, said Carole S. Rendon, Acting United States 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 on January 6, 2016, Francis entered the Huntington Bank at 9100 Mentor Avenue and robbed the bank of $5,198.
The Federal Bureau of Investigation conducted the investigation in conjunction with the Mentor Police Department, with assistance from the Painesville Police Department and the Lake County Sheriff's Office. The case is being prosecuted by Assistant United States Attorney Karrie D. Howard.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man charged with threatening the PresidentRead the Press Release
A Cleveland man was charged in federal court with making threats against the President, said Acting U.S. Attorney Carole S. Rendon.
Jonathan W. Smead, 35, was arrested on a criminal complaint. He is detained and is scheduled to appear before U.S. Magistrate Judge Nancy A. Vecchiarelli on March 9.
According to the complaint:
On Feb. 28 at approximately 10:16 CST, the U.S. Secret Service, Chicago Field Office received a call, which was forwarded to the Secret Service’s Cleveland Office. The caller stated “I want to kill President Obama.” The caller continued to speak about past assassins including John Wilkes Booth and Lee Harvey Oswald. The caller then stated he “wants to kill Hillary Clinton.” The caller then identified himself as Jonathan Smead and provided is Social Security number, date of birth, and said he is living with his grandmother on Spring Road in Cleveland. Finally, Smead stated he “wants federal charges, not little state charges.”
Smead was interviewed on Feb. 29. He admitted to making the phone call and said he had been drinking alcohol prior to making the call. He said he does not wish harm on the President or Clinton. He stated he had recently been watching the television show “The West Wing” and he is very interested in past presidents, specifically Abraham Lincoln and John F. Kennedy. He stated he visited the Texas Book Depository years ago as a tourist. During a consensual search, agents located two books in Smead’s bedroom related to the Kennedy assassination.
This case is being investigated by the U.S. Secret Service, with assistance from the Cleveland Division of Police. It is being prosecuted by Assistant U.S. Attorney Kevin Filiatraut.
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.
Van Wert man indicted for child pornographyRead the Press Release
An indictment was filed charging Sean R. Magner, 50, of Van Wert, with receipt and distribution of visual depictions involving the sexual exploitation of minors, said Carole S. Rendon, Acting United States 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 United States Postal Inspection Service. The case is being handled by Assistant United States Attorney Tracey B. 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.
Postal employee charged with opening mail that contained OxycodoneRead the Press Release
A criminal information was filed charging an employee of the U.S. Postal Service for opening a package that contained Oxycodone, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
Barbara Wright, 49, of Martin, Ohio, was charged with one count of theft of mail matter by an officer or employee.
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 U.S. Postal Service Office of the Inspector General. The case is being handled by Assistant United States Attorney Tracey B. Tangeman.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four Ohio men indicted in unrelated child pornography casesRead the Press Release
Four Ohio men were indicted in federal court on charges related to possession of child pornography, 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.
Indicted in the unrelated cases are: Cole A. Wolak, 29, of East Canton; Gary M. Kasunic, 49, of Willowick; Bryan K. Feguson, 56, of Lakewood, and Steven A. Ciccone, 65, of Kent.
Wolak was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct. From on or about December 1, 2015, through on or about January 18, 2016, in the Northern District of Ohio, Eastern Division, and elsewhere, Wolak knowingly received and distributed, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. On February 3, 2016, Wolak possessed two computers, a USB storage device, a secure digital card, an Ipod and a cell phone, each that contained child pornography, according to the indictment.
Kasunic was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct. From on or about August 16, 2012, through on or about January 18, 2013, in the Northern District of Ohio, Eastern Division, and elsewhere, Kasunic knowingly received and distributed, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. On January 18, 2013, Kasunic possessed a computer that contained child pornography, according to the indictment.
Ferguson was charged with possessing visual depictions of minors engaged in sexually explicit conduct. On or about December 7, 2015, in the Northern District of Ohio, Eastern Division, Ferguson knowingly possessed a micro secure digital card and a USB storage device, both that contained child pornography, according to the indictment.
Ciccone was charged with possessing child pornography. On or about February 4, 2016, images of child pornography were found on a DVD in Steven Ciccone’s possession, 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.
These cases are being prosecuted by Assistant United States Attorneys Michael A. Sullivan and Carole M. Skutnik following investigations 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.
Euclid man indicted for distribution of fentanyl and crack cocaine; also faces firearm chargeRead the Press Release
A three-count indictment was filed in federal court charging a Euclid man for having more than 900 pills of fentanyl, crack cocaine and a firearm, said Acting U.S. Attorney Carole Rendon.
Ryan Gaston, 29, was indicted on one count each of possession with intent to distribute fentanyl, possession with intent to distribute crack cocaine, and possession of a firearm in furtherance of drug trafficking.
Gaston was arrested on Feb. 3 in Cleveland Heights. A search of his car, and subsequent search of his apartment, revealed rocks of crack cocaine, a 9 mm High Point rifle and approximately 925 round blue pills believed to be Oxycodone 30 mg pills.
A test revealed the pills were not Oxycodone, but instead fentanyl, according to court documents.
Fentanyl is a very potent synthetic opiate used to treat pain and as a surgical anesthetic. While heroin is approximately three times as potent as morphine, fentanyl is approximately 80-100 times more powerful than morphine, according to court documents.
“Each one of these pills is capable of killing a person,” said Acting U.S. Attorney Carole Rendon. “We will continue to attack the opioid problem from all sides – prevention, education, treatment and enforcement.”
This case is being prosecuted by Assistant U.S. Attorney Michelle Baeppler following an investigation by the Drug Enforcement Administration, the Cleveland Heights Police Department, the Cuyahoga County Sheriff’s Office and the Euclid Police Department.
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.
Cleveland man charged with threatening and stalking at least three peopleRead the Press Release
A federal grand jury returned a nine-count indictment charging Jonathan L. Chain, 35, of Cleveland, with using a cellular telephone to send threats and stalking at least three victims, 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 on at least five occasions, Chain made cellular telephone calls to victims and threatened to kill, sexually assault or rape them. The indictment further alleges that the defendant, over a period of months in 2015, made a series of threatening telephone calls to at least three victims during which he threatened to sexually assault, rape or kill them.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, 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 investigation preceding the indictment was conducted by the Fairlawn Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Robert E. Bulford.
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 indicted for distribution of heroin and methamphetamineRead the Press Release
A federal grand jury returned a two-count indictment charging Chesseray T. Whatley, 39, of Akron, with possession with intent to distribute heroin and methamphetamine, said Acting U.S. Attorney Carole S. Rendon.
The indictment alleges that on February 8, 2016, Whatley possessed with the intent to distribute one kilogram or more of heroin and one kilogram or more of methamphetamine.
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 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 investigation preceding the indictment was conducted by the Ohio State Highway Patrol and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Robert E. Bulford.
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.
Remaining defendant pleads guilty to labor trafficking at Ohio egg farmRead the Press Release
Ana Angelica Pedro Juan, 22, of Guatemala, the remaining indicted defendant in a human-trafficking ring, pleaded guilty today in federal court to conspiring to lure Guatemalan minors and adults into the United States on false pretenses, then coercing their labor at egg farms in Ohio. The guilty plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; Acting U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
Pedro Juan pleaded guilty to a labor trafficking conspiracy. Her co-conspirators, Aroldo Castillo Serrano, 33, of Guatemala, and Conrado Salgado Soto, 53, of Mexico, pleaded guilty in August 2015 to participating in the same conspiracy in addition to immigration offenses.
According to the indictment, which was unsealed on July 2, 2015, the defendants and their associates recruited workers from Guatemala, some as young as 14 or 15 years old, falsely promising them good jobs and a chance to attend school in the United States. The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and to work at physically demanding jobs at Trillium Farms for up to 12 hours a day. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens and vaccinating chickens. Eight minors and two adults were identified in the indictment as victims of the forced labor scheme.
As set forth in the indictment, Pedro Juan’s role in the scheme included falsely representing herself to government officials as a family friend of the minor victims in order to have them released to her custody. In doing so, she pledged under oath to ensure that the victims went to school and were protected from abuse. She also arranged to have victims released to the custody of other associates in exchange for money. Pedro Juan also oversaw the trailers where the victims were housed and arranged for their wages to be transferred to co-conspirators in Guatemala and elsewhere.
“These defendants preyed on vulnerable children by falsely promising them good jobs and quality schools only to abuse and exploit them for profit,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “As shown today, the Department of Justice will continue to use the full resources of the federal government to aggressively prosecute the heinous crime of human trafficking.”
“This case is a stark reminder that human trafficking hides in plain sight all around us,” said Acting U.S. Attorney Rendon. “It underscores the need for all of us to be vigilant where we live and work. When something seems suspicious, we need to report it, not ignore it.”
“Ana Angelica Pedro Juan, along with two other defendants, forced adults and children to work and live in deplorable conditions in exchange for false promises,” said Special Agent in Charge Anthony. “These reprehensible actions are unacceptable, and the FBI will continue to work with our partners to bring to justice those who engage in human trafficking.”
Pedro Juan’s sentencing hearing will be scheduled at a later date. The charge against her carries a statutory maximum sentence of 20 years in prison. Castillo-Serrano, Salgado Soto and another defendant, Pablo Duran Jr., will be sentenced on April 11. Duran Jr. pleaded guilty to an immigration offense on Dec. 14, 2015. Two other defendants, Conrado Salgado-Borbon and Bartolo Dominguez, have pleaded guilty to immigration offenses in connection with this case and were sentenced to six and 12 months, respectively.
The case is being investigated by the FBI Cleveland Division’s Mansfield Resident Agency and the Department of Homeland Security. The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio.
Remaining Defendant Pleads Guilty to Forced Labor Scheme that Exploited Guatemalan Minors at Ohio Egg FarmsRead the Press Release
Ana Angelica Pedro Juan, 22, of Guatemala, the remaining indicted defendant in a human-trafficking ring, pleaded guilty today in federal court to conspiring to lure Guatemalan minors and adults into the United States on false pretenses, then coercing their labor at egg farms in Ohio. The guilty plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; Acting U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
Pedro Juan pleaded guilty to a labor trafficking conspiracy. Her co-conspirators, Aroldo Castillo Serrano, 33, of Guatemala, and Conrado Salgado Soto, 53, of Mexico, pleaded guilty in August 2015 to participating in the same conspiracy in addition to immigration offenses. The guilty pleas are pending approval from a federal court judge and are not final until that approval is granted.
According to the indictment, which was unsealed on July 2, 2015, the defendants and their associates recruited workers from Guatemala, some as young as 14 or 15 years old, falsely promising them good jobs and a chance to attend school in the United States. The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and to work at physically demanding jobs at Trillium Farms for up to 12 hours a day. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens and vaccinating chickens. Eight minors and two adults were identified in the indictment as victims of the forced labor scheme.
As set forth in the indictment, Pedro Juan’s role in the scheme included falsely representing herself to government officials as a family friend of the minor victims in order to have them released to her custody. In doing so, she pledged under oath to ensure that the victims went to school and were protected from abuse. She also arranged to have victims released to the custody of other associates in exchange for money. Pedro Juan also oversaw the trailers where the victims were housed and arranged for their wages to be transferred to co-conspirators in Guatemala and elsewhere.
“These defendants preyed on vulnerable children by falsely promising them good jobs and quality schools only to abuse and exploit them for profit,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “As shown today, the Department of Justice will continue to use the full resources of the federal government to aggressively prosecute the heinous crime of human trafficking.”
“This case is a stark reminder that human trafficking hides in plain sight all around us,” said Acting U.S. Attorney Rendon. “It underscores the need for all of us to be vigilant where we live and work. When something seems suspicious, we need to report it, not ignore it.”
“Ana Angelica Pedro Juan, along with two other defendants, forced adults and children to work and live in deplorable conditions in exchange for false promises,” said Special Agent in Charge Anthony. “These reprehensible actions are unacceptable, and the FBI will continue to work with our partners to bring to justice those who engage in human trafficking.”
Pedro Juan’s sentencing hearing will be scheduled at a later date. The charge against her carries a statutory maximum sentence of 20 years in prison. Castillo-Serrano, Salgado Soto and another defendant, Pablo Duran Jr., will be sentenced on April 11. Duran Jr. pleaded guilty to an immigration offense on Dec. 14, 2015. Two other defendants, Conrado Salgado-Borbon and Bartolo Dominguez, have pleaded guilty to immigration offenses in connection with this case and were sentenced to six and 12 months, respectively.
The case is being investigated by the FBI Cleveland Division’s Mansfield Resident Agency and the Department of Homeland Security. The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio.
Former North Randall police officer sentenced to five years in prison for selling firearms to felonsRead the Press Release
A former police officer was sentenced to more than five years in prison for illegally selling firearms to people he knew were felons, 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.
Kevin R. Lumpkin, 29, of North Olmsted, was convicted last year of selling a Hi-Point .45-caliber rifle and a Ruger .380-caliber pistol on different occasions to people he knew were convicted of felonies and therefore forbidden from possessing a firearm. These sales took place between 2011 and 2013, when Lumpkin was a North Randall police officer, according to trial testimony.
This case is being prosecuted by Assistant U.S. Attorneys M. Kendra Klump and Edward Feran following an investigation by the FBI.
Youngstown man convicted of raping 11-year-oldRead the Press Release
A Youngstown man faces up 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 transporting a child under 18 years of age in interstate commerce with the intent to engage in an illegal sexual act.
Underwood is expected to be sentenced later this year.
This case was prosecuted by Assistant U.S. Attorneys Michael A. Sullivan and Benedict Gullo following an investigation by FBI, with assistance from the Youngstown and Boardman police departments.
Youngstown man faces federal firearm and drug chargesRead the Press Release
A federal grand jury returned an 11-count indictment charging Raymond R. Ingram, 36, of Youngstown, with distributing crack cocaine, heroin and buprenorphine, maintaining a drug premises and being a felon in possession of a firearm and ammunition, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Ingram distributed crack cocaine, heroin and buprenorphine on various dates in May 2015. He maintained a place on Stewart Avenue in Youngstown for the purpose of distributing crack cocaine and heroin, according to the indictment.
Ingram also possessed a Smith & Wesson, model SW9VE, 9mm semi-automatic pistol and ammunition, despite a prior felony conviction in the Medina County Court of Common Pleas in 2010, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mahoning Valley Law Enforcement Task Force. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Reggie Rucker pleads guilty to using charitable donations to pay gambling debts, personal expensesRead the Press Release
Reggie Rucker pleaded guilty today in federal court to charges related to using charitable donations to anti-violence groups he led to pay his gambling debts and personal expenses, including mortgage payments, meals, and entertainment, law enforcement officials said.
Rucker, 68, of Warrensville Heights, is scheduled to be sentenced on May 23. He pleaded guilty to one count of one count of wire fraud and one count of making false statements to law enforcement.
“Today Mr. Rucker publically owned to up to his misdeeds,” said Acting U.S. Attorney Carole Rendon. “He betrayed the trust of his employees, the generous foundations, individuals, and businesses that supported him, and the entire community. I am pleased that the Cleveland Peacemakers Alliance has begun to move forward with its important work, and Mr. Rucker will be held accountable for his crimes.”
“Mr. Rucker used his position of trust to help fund his gambling habits and personal expenses, and ultimately, he betrayed those that supported his work in the community,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The FBI will continue to work with our partners to identify and hold accountable those who chose to commit such fraud.”
Rucker served as executive director of Amer-I-Can Cleveland (Amer-I-Can), a nonprofit organization located in Shaker Heights. Rucker also served as president of the Cleveland Peacemakers Alliance (CPA), a collaboration of community organizations that employed outreach workers to resolve conflicts in Cleveland. Rucker solicited charitable contributions and deposited them into Amer-I-Can’s bank account, according to the criminal information.
From 2011 through February 11, 2015, Rucker diverted funds intended to support Amer-I-Can and CPA for his personal use and in excess of any compensation he was entitled to receive. Rucker wrote checks to himself and made withdrawals from the Amer-I-Can bank account in amounts and frequencies unrelated to the work he performed, but rather dictated by his own personal financial needs, including to pay his mortgage, entertainment, meals, travel, groceries, and dry cleaning, according to the information.
In furtherance of his scheme, Rucker falsely told current and prospective donors that Amer-I-Can had an independent board of directors to provide oversight when it did not. Rucker also filed documents under the penalties of perjury with the Internal Revenue Service that significantly understated the amount of money he took from the Amer-I-Can bank account. He also falsely claimed to certain actual and prospective donors, “I do not have a salary with Amer-I-Can,” and “We don’t have any contracts that pay me…”, according to the information.
Rucker withdrew approximately $48,000 at casino ATMs in Tampa, Las Vegas, and Cleveland, from the Amer-I-Can bank account from 2011 to 2015, including over $35,000 in 2014 alone. He also paid multiple gambling debts he incurred at a Las Vegas casino totaling $65,000 using money donated to Amer-I-Can and CPA for charitable purposes, according to the information.
In January 2013, when an employee of a Cleveland-area foundation (identified in the charges as Foundation 1) informed Rucker that “The Board (of Foundation 1) has awarded $150,000…for Peacemakers Alliance. Congrats!!!”, Rucker forwarded the email to a Las Vegas casino that he owed $20,000, stating “this is my non profit and they were a little behind getting me my money. I will not actually have this in my hands for 10 days, maybe 14 . . . I like to keep communication open so that I don’t get into any trouble. Can they work with me on this?” On March 5, 2013, Amer-I-Can received $58,751.52 of Foundation 1’s charitable funds, and on March 12, 2013, Rucker wrote a check for $20,000, funded in part by Foundation 1’s donation to Amer-I-Can, to the Las Vegas Casino to pay his gambling debt, according to the information.
In January 2014, after receiving $47,500 from a donor identified in the information as Foundation 2, Rucker wrote himself two checks totaling $40,000 from the Amer-I-Can bank account, and used a portion of this money to pay an outstanding gambling debt of $25,000 to a Las Vegas casino, according to the information.
In September 2014, Rucker incurred a $20,000 debt at a Las Vegas casino. Between November 18 and December 1, 2014, Rucker wrote himself checks totaling approximately $21,200 from the Amer-I-Can bank account and paid the Las Vegas casino $15,000 of his debt. In January 2015, after Amer-I-Can received $47,500 from Foundation 2, Rucker wrote himself a check for $10,000 and paid the remaining $5,000 he owed the Las Vegas casino, according to the information.
Rucker repeatedly solicited grants and donations from foundations, corporations and executives, but failed to disclose his diversion of charitable funds. For example, on November 19, 2014, Amer-I-Can received $10,000 from an entity identified as Foundation 4. The next day, Rucker wrote himself a check for $10,000, but later submitted a report to Foundation 4 that stated: “We appreciated the bridge support granted to us by [Foundation 4], it was helpful in being able to assist high risk and gang affiliated youth. The continued support of [Foundation 4] will be instrumental…,” according to the information.
Rucker also repeatedly cited CPA outreach workers’ lack of pay to justify his requests for additional funds, but did not disclose his personal use of charitable funds. For example, Rucker solicited funds from Foundation 1, which provided approximately $2.45 million to CPA between 2011 and 2015, by claiming that CPA workers “believe they are being disrespected and taken advantage of . . . I can’t hold them together much longer. We have come too far, put too much into this . . . None of us has money!”, according to the information.
This case is being prosecuted by Assistant U.S. Attorneys Adam Hollingsworth and Miranda Dugi following an investigation by the Federal Bureau of Investigation.
Michigan pair charged with attempting to provide marijuana to federal inmateRead the Press Release
A federal grand jury returned a three-count indictment charging Kauba Simpson, 28, and Makoyia D. Jenkins, both of Dearborn, Michigan, with attempt to provide marijuana to a federal inmate and attempt to possess marijuana by a federal inmate, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
The indictment alleges that on or about August 30, 2014, Jenkins attempted to provide marijuana to Simpson, an inmate in the Elkton Federal Correctional Institution, which he attempted to possess. It also alleges that Jenkins made a false and fraudulent statement to a correctional officer at Elkton FCI, in that she indicated the marijuana was not in her possession, when in fact, it was.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Elkton Federal Correctional Institution. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Canfield physician charged for withholding taxes from employees but not paying the money over to governmentRead the Press Release
A physician from Canfield was charged with failing to pay over Social Security, Medicare and employment taxes collected from his employees, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Guy Ficco, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office.
Nicholas M. Garritano, 54, is charged with a willful failure to pay over taxes.
"This defendant took out the taxes from his employees but kept the money for himself," Rendon said. "He victimized his workers and those who paid their fair share of taxes."
"Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS," Ficco said. "The failure to pay over withheld taxes is a serious offense and IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes."
The indictment alleges that during 11 quarters spanning from 2009 through 2012, Garritano was president and sole shareholder of a corporation run by the name “Dr. N.M. Garritano, Inc.,” located in Canfield. Garritano was responsible for the corporation’s business and financial operations. Garritano caused the corporation to pay taxable wages and salaries to its employees, from which federal income and FICA taxes were withheld, according to the indictment.
Garritano filed quarterly forms with the Internal Revenue Service on behalf of the corporation relating to the employment taxes. Although the corporation withheld substantial employment taxes from the wages of its employees for each quarter, the defendant failed to pay over the full amount of the withheld taxes to the IRS, according to the indictment.
The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following an investigation by IRS-CI.
If convicted, the defendant's sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Chinese nationals charged with defrauding GoodyearRead the Press Release
Xin Franco Fan, 40, and Rex Xu Yu, 41, two Chinese nationals, were arrested and charged on February 19, 2016 with wire fraud and honest services wire fraud for defrauding Goodyear, said FBI Special Agent in Charge Stephen D. Anthony and Acting U.S. Attorney Carole S. Rendon.
"The FBI takes its responsibility to aggressively protect US companies from the vulnerabilities associated with operating overseas seriously, including significant fraud as alleged in this investigation," Anthony said. "Individuals who participate in fraud schemes should not underestimate the resolve of the FBI to work closely with companies such as Goodyear to root out these schemes and bring the perpetrators to justice."
"These two defendants were engaged in a multi-year scheme designed to steal tens of thousands of dollars from Goodyear," Rendon said. "Goodyear is to be commended for promptly reaching out to law enforcement when they uncovered this scheme. Because of their quick action, we are now able to hold these men accountable for their conduct."
According to a criminal complaint, 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.
As a condition of their employment, Fan and Yu are 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 a complaint being filed in the Northern District of Ohio federal court and arrest warrants being issued for Fann and Yu.
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.
Euclid man charged in federal court after arrest with more than 900 pills of fentanylRead the Press Release
A Euclid man was charged in federal court with conspiracy to distribute fentanyl and crack cocaine after he was arrested with more than 900 pills of fentanyl, law enforcement officials said.
Ryan Gaston, 29, was arrested on Feb. 3. A search of his car and home apartment revealed rocks of crack cocaine, a 9 mm High Point rifle and approximately 926 round blue pills believed to be Oxycodone 30 mg pills. A subsequent test revealed the pills were not Oxycodone, but instead fentanyl, according to the criminal complaint.
Fentanyl is a very potent synthetic opiate used to treat pain and as a surgical anesthetic. While heroin is approximately three times as potent as morphine, fentanyl is approximately 80-100 times more powerful than morphine. There were 37 fentanyl-related deaths in Cuyahoga County In 2014. Last year, there were 89 and this year, there have already been at least 19, according to the complaint.
“Each one of these pills is capable of killing a person,” said Acting U.S. Attorney Carole Rendon. “We will continue to attack the opioid problem from all sides – prevention, education, treatment and enforcement. This defendant will be held accountable for spreading poison throughout our community.”
This case is being prosecuted by Assistant U.S. Attorney Michelle Baeppler following an investigation by the Drug Enforcement Administration, the Cleveland Heights Police Department, the Cuyahoga County Sheriff’s Office and the Euclid Police Department.
Former teacher sentenced to nearly five years in prison for child pornographyRead the Press Release
A former school teacher was sentenced to nearly five years in prison for possession of child pornography, said Carole 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.
Jacob Garlock, 27, was sentenced to 57 months in prison. He previously pleaded guilty to one count of child pornography.
This case was prosecuted by Assistant U.S. Attorney Michael Sullivan following an investigation by the FBI.
Warren man faces firearm chargeRead the Press Release
A federal grand jury returned a one-count indictment charging Airiz A. Coleman, 39, of Warren, with being a felon in possession of a firearm and ammunition, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
The indictment alleges that on or about November 17, 2015, Coleman possessed a Criterion Die & Metal, model CDM, .22-caliber revolver and ammunition, despite previous convictions for felonious assault and improper discharge of a firearms at or into a habitation in the Trumbull County Court of Common Pleas in 2008.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Warren 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.
Twelve people indicted for conspiracy to distribute cocaine in YoungstownRead the Press Release
An 84-count indictment was filed in federal court charging 12 people for their roles in a conspiracy to distribute cocaine in the Youngstown area, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
The indictment alleges that between March 2015 and continuing through January 2016, the following individuals knowingly conspired to possess with the intent to distribute and to distribute cocaine: Jose G. Martinez, aka Lupe, 42, of Austintown, Ohio; Ricardo Bustillos-Ramos, 46, of Austintown, Ohio; Jonathan Rivera, 30, of Dallas; Lilia Comacho-Jimenez, 32, of Austintown, Ohio; Pedro Aboite-Espitia, 44, of New Carlisle, Ohio; Raymone T. West, 26, of Springfield, Ohio; Bruce Cuevas, Sr., 61, of Youngstown; Felipe Hildago-Rivera, 30, of Des Moines, Iowa; Justin D. Trevor, 28, of Wellsville, Ohio; Joseph W. Warrick, 54, of East Liverpool, Ohio; John N. Clemens, 71, of Kensington, Ohio, and Michael S. Patterson, 41, of Springfield, Ohio.
It was part of the conspiracy that Rivera and Aboite-Espitia supplied cocaine to Martinez for distribution in the Youngstown area. Martinez supplied cocaine to Trever, Clemens and Warrick for redistribution in the Northern District of Ohio and to West and Patterson for redistribution in the Southern District of Ohio, according to the indictment.
It was further part of the conspiracy that Bustillos-Ramos transported cocaine from Texas to Martinez in Ohio. Cuevas transported drugs and drug proceeds for the organization while Hildago-Rivera possessed and transported cocaine for the organization. The conspirators used cellular telephones, code words and phrases to facilitate their drug trafficking activities, according to the indictment.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration. 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.
Parma man faces child pornography chargesRead the Press Release
Michael L. Sowinski, 62, of Parma, was charged with receiving, distributing, and possessing visual depictions of minors engaged in sexually explicit conduct, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about November 5, 2011, through on or about May 3, 2015, Sowinski knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. It is further alleged that on May 14, 2015, Sowinski possessed a Dell desktop computer, a Western Digital external hard drive, a Hitachi external hard drive, and a Samsung external hard drive, all devices that contained child pornography.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorneys Benedict S. Gullo and Carol M. Skutnik. The case was investigated by the State of Ohio Internet Crimes Against Children Task Force.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four people indicted for heroin trafficking in YoungstownRead the Press Release
A federal grand jury returned a 29-count indictment charging four people with drug trafficking crimes, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
Andre L. Duncan, 37, of Brent, Alabama; Morris D. Perry, 37, of Youngstown; Shon D. Rankin, 36, of Youngstown; and Phillip T. Devine, 26, of Leetonia, Ohio, knowingly conspired to possess with the intent to distribute and to distribute heroin between May 2014 and continuing through August 2014, according to the indictment.
Duncan supplied heroin to Rankin and Perry for distribution in the Youngstown area. Perry supplied heroin to Devine for distribution in the Youngstown area, according to the indictment.
It was further part of the conspiracy that cellular telephones, code words and phrases were used by the co-conspirators to facilitate their drug trafficking activities.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration. The case 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.
Reggie Rucker charged for using charitable donations to pay gambling debts, personal expensesRead the Press Release
Reggie Rucker was charged in federal court for allegedly using charitable donations to anti-violence groups he led to pay his gambling debts and personal expenses, including mortgage payments, meals, and entertainment, law enforcement officials said.
He was also charged with lying to the FBI during when questioned about his alleged diversion of charitable funds.
Rucker, 68, of Warrensville Heights and a former professional football player with the Cleveland Browns, was charged in a criminal information with one count of wire fraud and one count of making false statements to law enforcement.
“Reggie Rucker misused his celebrity and position in the community to dupe some of our most important local foundations and generous citizens,” said Acting U.S. Attorney Carole Rendon. “He stole from the very violence interrupters he so publically claimed to support. In one breath he begged generous donors to save Amer-I-Can and the Peacemakers Alliance, and in the next he stole that money to support his lifestyle and his gambling junkets in Cleveland, Florida, and Las Vegas, using the charity's account as his own ATM.”
“Mr. Rucker used his position of trust to help fund his gambling habits and personal expenses, and ultimately, he betrayed those that supported his work in the community,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The FBI will continue to work with our partners to identify and hold accountable those who chose to commit such fraud.”
Rucker served as executive director of Amer-I-Can Cleveland (Amer-I-Can), a nonprofit organization located in Shaker Heights. Rucker also served as president of the Cleveland Peacemakers Alliance (CPA), a collaboration of community organizations that employed outreach workers to resolve conflicts in Cleveland. Rucker solicited charitable contributions and deposited them into Amer-I-Can’s bank account, according to the information.
From 2011 through February 11, 2015, Rucker diverted funds intended to support Amer-I-Can and CPA for his personal use and in excess of any compensation he was entitled to receive. Rucker wrote checks to himself and made withdrawals from the Amer-I-Can bank account in amounts and frequencies unrelated to the work he performed, but rather dictated by his own personal financial needs, including to pay his mortgage, entertainment, meals, travel, groceries, and dry cleaning, according to the information.
In furtherance of his scheme, Rucker falsely told current and prospective donors that Amer-I-Can had an independent board of directors to provide oversight when it did not. Rucker also filed documents under the penalties of perjury with the Internal Revenue Service that significantly understated the amount of money he took from the Amer-I-Can bank account. He also falsely claimed to certain actual and prospective donors, “I do not have a salary with Amer-I-Can,” and “We don’t have any contracts that pay me…”, according to the information.
Rucker withdrew approximately $48,000 at casino ATMs in Tampa, Las Vegas, and Cleveland, from the Amer-I-Can bank account from 2011 to 2015, including over $35,000 in 2014 alone. He also paid multiple gambling debts he incurred at a Las Vegas casino totaling $65,000 using money donated to Amer-I-Can and CPA for charitable purposes, according to the information.
In January 2013, when an employee of a Cleveland-area foundation (identified in the charges as Foundation 1) informed Rucker that “The Board (of Foundation 1) has awarded $150,000…for Peacemakers Alliance. Congrats!!!”, Rucker forwarded the email to a Las Vegas casino that he owed $20,000, stating “this is my non profit and they were a little behind getting me my money. I will not actually have this in my hands for 10 days, maybe 14 . . . I like to keep communication open so that I don’t get into any trouble. Can they work with me on this?” On March 5, 2013, Amer-I-Can received $58,751.52 of Foundation 1’s charitable funds, and on March 12, 2013, Rucker wrote a check for $20,000, funded in part by Foundation 1’s donation to Amer-I-Can, to the Las Vegas Casino to pay his gambling debt, according to the information.
In January 2014, after receiving $47,500 from a donor identified in the information as Foundation 2, Rucker wrote himself two checks totaling $40,000 from the Amer-I-Can bank account, and used a portion of this money to pay an outstanding gambling debt of $25,000 to a Las Vegas casino, according to the information.
In September 2014, Rucker incurred a $20,000 debt at a Las Vegas casino. Between November 18 and December 1, 2014, Rucker wrote himself checks totaling approximately $21,200 from the Amer-I-Can bank account and paid the Las Vegas casino $15,000 of his debt. In January 2015, after Amer-I-Can received $47,500 from Foundation 2, Rucker wrote himself a check for $10,000 and paid the remaining $5,000 he owed the Las Vegas casino, according to the information.
Rucker repeatedly solicited grants and donations from foundations, corporations and executives, but failed to disclose his diversion of charitable funds. For example, on November 19, 2014, Amer-I-Can received $10,000 from an entity identified as Foundation 4. The next day, Rucker wrote himself a check for $10,000, but later submitted a report to Foundation 4 that stated: “We appreciated the bridge support granted to us by [Foundation 4], it was helpful in being able to assist high risk and gang affiliated youth. The continued support of [Foundation 4] will be instrumental…,” according to the information.
Rucker also repeatedly cited CPA outreach workers’ lack of pay to justify his requests for additional funds, but did not disclose his personal use of charitable funds. For example, Rucker solicited funds from Foundation 1, which provided approximately $2.45 million to CPA between 2011 and 2015, by claiming that CPA workers “believe they are being disrespected and taken advantage of . . . I can’t hold them together much longer. We have come too far, put too much into this . . . None of us has money!”, according to the information.
This case is being prosecuted by Assistant U.S. Attorneys Adam Hollingsworth and Miranda Dugi 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.
Three brothers charged with operating $4 million food stamp fraud conspiracy from their Cleveland storeRead the Press Release
A six-count indictment was filed in federal court charging three brothers for their roles in a $4 million food stamp fraud conspiracy operated through their Cleveland business, law enforcement officials said.
Mohammad H. Mohammad, 52 of Parma; Omar H. Mohammad, 49, of Parma, and Rashid H. Mohammad, 53, of Strongsville, are each charged with one count of conspiracy to commit food stamp fraud, one count of food stamp fraud and one count of unlawful redemption of food stamps. Mohammad Mohammad also faces three additional counts of engaging in financial transactions with proceeds from specified unlawful activity.
The Mohammads and others conspired to commit more than $4 million in food stamp fraud through the use of their business, Holyland Imported Goods, located at 11717 Lorain Avenue. This took place between 2003 and 2015, according to the indictment.
The investigation revealed the defendants and others used their business to exchange customer food stamps for cash and other unauthorized items. The defendants also engaged in a pattern of purchasing customer food stamp cards and using them at other grocery locations to purchase inventory for Holyland, according to the indictment.
The indictment also seeks to recover $4 million, including nearly $900,000 that has been seized from various bank accounts.
“For more than a decade, these defendants have been cheating the taxpayers by illegally accepting food stamp cards they knew didn’t belong to the card holder, and accepting food stamps for prohibited items, including tobacco and prepared food for resale at restaurants,” said Acting U.S. Attorney Carole S. Rendon. “We will continue to prosecute violations of the food stamp program, which is designed to help the most vulnerable in our community, not enrich those who prey on them.”
“This investigation and prosecution should send a strong zero-tolerance message to those individuals who attempt to defraud U.S. Department of Agriculture programs,” said Anthony V. Mohatt, Special Agent in Charge, USDA-OIG-Investigations. “It should also serve as a warning to all that fraud will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney's Office, and all its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from taxpayer funded programs.”
“The Supplemental Nutrition Assistance Program was designed to help the men, women and children of Cleveland with the purchase of eligible items, not to be used for the purchase of unauthorized items or to be exchanged for cash,” said Guy A. Ficco, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money.”
“The Mohammad’s engaged in millions of dollars of fraud targeting federal government food assistance programs in order to line their pockets,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “Driven by their greed, they showed a complete disregard for those who were truly in need.”
This case is being prosecuted by Assistant U.S. Attorneys Christos N. Georgalis, M. Kendra Klump and Phillip J. Tripi after an investigation by agents of the United States Department of Agriculture, Office of Inspector General-Investigations, the Internal Revenue Service – Criminal Investigations, the Federal Bureau of Investigation, Ohio Department of Public Safety and the Lakewood Police Department.
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 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.
Seven Hills man indicted for distributing oxycodone, other pillsRead the Press Release
An 11-count indictment was filed in federal court charging a Seven Hills man for conspiring to distribute oxycodone and other pills, Acting U.S. Attorney Carole Rendon said.
Alfonso C. Yunis, 42, was indicted on one count of conspiracy to possess with intent to distribute oxycodone, two counts of distribution of oxycodone, two counts of using U.S. mail to facilitate a felony and six counts for distribution of controlled substances, including Alprazolam, testosterone, amphetamines, oxycodone, Diazepam, and others. These actions took place between Sept. 9 and Oct. 26, 2015, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Marisa Darden following an investigation by United States Postal Inspection Service
If convicted, the defendant's sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment 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.
Louisville man faces child pornography chargeRead the Press Release
A one-count indictment was filed charging Christopher Allen Figueroa, 33, of Louisville, Ohio, with possessing child pornography, said Carole S. Rendon, Acting U.S. States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the FBI Cleveland Field Office, Canton Resident Agency.
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.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.
Columbiana County woman accused of stealing $600,000 from her employerRead the Press Release
A Columbiana County woman was named in a 25-count indictment, accused of defrauding her employer out of more than $600,000 over seven years, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
Sharon Ceasar, also known as Sharon Kay Miller, 48, of Hanoverton, was indicted on 25 counts of wire fraud.
Ceasar was working as the office manager for Foster Trucking & Leasing. In that capacity, she submitted the hours worked by employees, as well as miscellaneous expenses, to a payroll company that issued paychecks. Ceaser, without her employer’s knowledge, falsely stated the amount of overtime she worked, reporting as many 80 hours of overtime a week. She also falsely submitted for reimbursements from the company for expenses she never incurred, according to the indictment.
Ceasar defrauded the company of more than $600,000 from 2006 to 2013 as a result of this fraudulent scheme, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
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.
This case is being prosecuted by Assistant U.S. Attorney Teresa L. Riley following an investigation by the United States Secret Service and the Columbiana County Sheriff’s Department.
Brooklyn woman charged with stealing $60,000 from Social SecurityRead the Press Release
A federal grand jury indicted Margaret A. Hovan, 67, of Brooklyn, for theft of government funds, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
The indictment alleges that Hovan fraudulently withdrew her deceased mother’s Title II Social Security Survivor’s benefits from May 2011 until December 2014, taking a total of $59,468 to which she was not entitled.
The Social Security Administration Office of Inspector General conducted the investigation. The case is being prosecuted by Special Assistant United States Attorney Lisa J. Sanniti.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An 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.
Mentor couple charged with tax evasionRead the Press Release
A husband and wife from Mentor were charged with tax evasion, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Guy Ficco, Acting Special Agent in Charge, Criminal Investigation, Cincinnati Field Office.
Edgardo Morales, 55, and Paula Morales, 48, both of Mentor, are charged with attempting to evade taxes. Specifically, a criminal information alleges that from 2010 to 2012, they owned a bar and entertainment business called The 800 Club in Cleveland. They are alleged to have substantially under-reported the business’s revenues to the Internal Revenue Service on the corporate tax returns associated with the business.
The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following an investigation by IRS-CI.
If convicted, the defendant's sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An 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.
Letter carrier charged with worker's compensation fraudRead the Press Release
A letter carrier for the U.S. Postal Service has been charged with defrauding the Department of Labor, law enforcement officials said.
Douglas A. Joachim, 51, of Wadsworth, concealed and falsified his medical condition and physical abilities to the Labor Department’s worker’s compensation program. He is employed as a letter carrier and, on numerous occasions, was receiving disability payments through the worker’s compensation program. He willingly made false, fictitious and fraudulent statements about his medical condition, which resulted in these benefits being paid, according to the information.
This case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the U.S. Postal Service Office of Inspector General.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offenses and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
A charge is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Toledo man faces heroin, fentanyl and firearms chargesRead the Press Release
An 11-count indictment was filed charging Vinson Shawn Belcher, 40, of Toledo, with distribution of heroin and fentanyl, possession with intent to distribute heroin and being a felon in possession of firearms, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment details multiple sales of heroin and fentanly between February 2015 and January 2016. It also alleges Belcher had two firearms on January 19, 2016, despite previous felony convictions that forbid him from possessing firearms.
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 conjunction with the Toledo Metro Drug Task Force, Toledo, Ohio. The case is being handled by Assistant United States Attorneys Alissa M. Sterling and James L. Morford.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four people and Toledo company indicted for fraudulently using job-training money for personal expensesRead the Press Release
A 29-count federal indictment was filed charging four people and a Toledo company with defrauding federal, state and county government by artificially inflating costs and invoices associated with operating job training programs, and instead using the money to pay for real estate, cars, vacations, cosmetic surgery and other personal purchases, said U.S. Attorney Steven M. Dettelbach and Guy A. Ficco, Acting Special Agent in Charge, IRS-Criminal Investigation.
Indicted are: Daniel E. Morris, 66, of Maumee; James D. Moody, 55, Victoria Hawkins, 28, and Angela Bowser, 44, all of of Toledo, and Business Rehabilitation Informed Decisions Guiding Employment Strategies, Inc. d/b/a B.R.I.D.G.E.S., Inc., a Toledo-based corporation.
The charges relate to program fraud, mail fraud, aggravated identity theft, money laundering, failure to pay over payroll taxes, and obstruction of justice from 2004 through 2015.
“These defendants took advantage of economic hardship in Northwest Ohio to enrich themselves,” Dettelbach said. “They stole taxpayer dollars and blew the money on vacations, tattoos and other frivolous expenses. We have zero tolerance for misuse of taxpayer money.”
“These government-funded programs were designed to help the men, women and children of Lucas County, and these individuals defrauded them for their own personal gain,” Ficco said. “The conduct detailed in this indictment is egregious and exposed these individuals for what they really are, thieves.”
According to the indictment:
BRIDGES operated at 242 Reynolds Road and 310 Reynolds Road. The company was in the business of providing work placement and work training services to public assistance recipients, and nearly all of its revenue came from public funds.
Morris was the founder and general manager of BRIDGES. Moody was the registered agents and shareholder along with Morris. Hawkins was an employee from 2008 through 2013, while Bowser was an employee from 2008 through 2014.
The Temporary Assistance for Needy Families program was a welfare program that provided cash assistance to qualifying households with minor children or pregnant women. TANF provided federal block grants to states each year to cover benefits, administrative expenses and services targeted to needy families.
One of TANF’s goals was reducing the dependency of needy parents by promoting job preparation, work and marriage. TANF recipients must work as soon as they are job ready and no later than two years after commencing assistance.
BRIDGES received more than $15.7 million in funding from several entities between 2004 and 2015, including the Ohio Department of Job and Family Services, the Lucas County Department of Job and Family Services, Ohio Works First and others. This funding was based in part on BRIDGES’ grant proposals. The majority of BRIDGES’ stated administrative costs were payroll and transportation.
BRIDGES provided job training and work placement services but at substantially lower costs than those stated in its budgets and invoices. The defendants fraudulently inflated BRIDGES payroll costs, transportation and mileage.
Morris, BRIDGES and others maintained false personnel files, timesheets, mileage records and reimbursement forms for nonexistent employees. They included fake, former or nonexistent employees on the payroll. For example, BRIDGES paid Moody a salary even though he did not work there, and later continued to pay him by issuing payroll checks to Moody’s wife.
BRIDGES, Morris, Moody, Hawkins and Bowser used TANF funds to pay for personal living expenses including groceries, dental care, medical care, resort vacations, pharmaceuticals, clothing, toys, designer bags, furniture, video streaming services, credit card bills, legal fees unrelated to BRIDGES’ business, tattoos, cosmetic surgery, real estate, vehicles, investments and jewelry, according to the indictment.
For example, between February 2013 and October 2014, Hawkins used a debit card linked to a BRIDGES account to make approximately $18,200 in cash withdrawals.
Each defendant is charged in a conspiracy to commit program fraud and mail fraud. Each defendant is also charged in a conspiracy to commit money laundering offenses.
Morris is charged with four counts of program fraud, five counts of mail fraud, two counts of aggravated identity theft, nine counts of money laundering, six counts of failure to pay over withheld income tax and one count of obstruction of justice.
Moody is charged with four counts of program fraud, five counts of mail fraud, two counts of aggravated identity theft, nine counts of money laundering, six counts of failure to pay over withheld income tax and one count of obstruction of justice
Moody is charged with one count of program fraud and three counts of money laundering.
Hawkins is charged with two counts of program fraud and four counts of money laundering.
Bowser is charged with one count of program fraud and two counts of money laundering.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offenses and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Noah P. Hood and Gene Crawford following an investigation by the Internal Revenue Service-Criminal Investigations, Toledo, Ohio, and the Office of Auditor of State (Ohio), Toledo, Ohio. .
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.
Cleveland woman charged with stealing firearms from Broadview Heights storeRead the Press Release
Michaele N. Lenzy, 28, of Cleveland, was charged with stealing firearms from a federal firearms licensee, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The Indictment charges that on or about December 13, 2015, Lenzy knowingly stole and unlawfully took away two semi-automatic firearms from LTD Gun Shop and Pistol Range, which is engaged in the business of dealing in firearms.
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 Benedict S. Gullo. The case was investigated by the Broadview Heights Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man faces drug and firearms chargesRead the Press Release
A federal grand jury returned a two-count indictment charging Paul E. Loines, 53, of Cleveland, with being a felon in possession of a firearm and possession of crack cocaine with the intent to distribute, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Loines was found to be in possession of a .22 caliber handgun and 4.94 grams of crack cocaine with intent to distribute.
Assistant United States Attorney Karrie D. Howard is prosecuting the case, following an investigation by 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.
Cleveland man faces drug and firearm chargesRead the Press Release
A Cleveland man faces drug and firearms charges, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
A six-count indictment was filed charging Jakub Wojtan, 23, on one count of possession with intent to distribute MDMA and five firearm counts.
Wojtan on Dec. 17 possessed a STEN 9 mm submachine gun with no serial number, which had not been registered with the National Firearms Registration and Transfer Record, as required under law; a sawed-off shotgun; a silencer which had not been registered with the National Firearms Registration and Transfer Record, as required under law; and an AK-47 which had not been registered with the National Firearms Registration and Transfer Record, as required under law, according to the indictment.
Assistant United States Attorney Karrie D. Howard is prosecuting the case, following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Parma Heights Police Department.
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.
Broadview Heights man charged for his role in theft of $3.3 million from the Cuyahoga Heights School DistrictRead the Press Release
A two-count criminal information was filed charging a Broadview Heights man for his role in the theft of more than $3.3 million from the Cuyahoga Heights School District, law enforcement officials said.
Dominick Palazzo, 42, was charged with conspiracy to commit mail fraud and conspiracy to commit money laundering.
His brother, Joseph M. Palazzo, was an employee of the Cuyahoga Heights School District. The Palazzos, along with David Donadeo and Dennis Boyles, conspired together to defraud the school district through dozens of fraudulent billings to sham companies controlled by Dominick Palazzo, Donadeo and Boyles, according to court documents.
“This defendant, along with his brother and friends, stole millions of dollars from the children and taxpayers in Cuyahoga Falls,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “They used fraudulent invoices and fake companies to enrich themselves at the expense of kids.”
“This investigation uncovered a multi-million-dollar embezzlement scheme laced with a web of financial lies that left a local school district in financial peril,” said Guy A. Ficco, Acting Special Agent in Charge, IRS-Criminal Investigation, Cincinnati Field Office.
“Dominick Palazzo violated the trust that the citizens and students of Cuyahoga Heights had placed in him by funding his personal account with their tax dollars,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The investigators are to be commended for uncovering this enormous fraud.”
Joseph Palazzo was employed by the Cuyahoga Heights School District as its Information Technology director until February 2011. He was responsible for managing the district’s IT Department, which included purchasing hardware and software and making other IT expenditures to benefit the district and its students, according to the information.
Joseph Palazzo devised a scheme to divert millions of dollars of district funds to his personal use and the personal use of others. This scheme involved Joseph Palazzo submitting to the district for payment false invoices that purported to be for IT-related goods and services purchased from legitimate companies by the district’s IT Department to benefit the district. He represented that the invoices he submitted were legitimate, and he approved the false invoices himself or forged the signature of another in the approval section, according to the information.
However, these invoices were for services never performed, fictitious software and hardware, and software and hardware never received or already purchased by the district from another source. The companies named on the invoices did not supply such goods to or perform such services for the district and were nothing more than “shells,” according to court documents.
Joseph Palazzo’s actions caused the district to issue checks to these shell vendor corporations, which were established and owned by Dominick Palazzo, Boyles and Donadeo. The shell vendor corporation owners kept approximately half of the stolen money themselves and funneled the remainder of the money back to Joseph Palazzo for his personal use, according to court documents.
These shell companies included Laptops and More, Inc., and Impact Global, LLC, which were established by Dominick Palazzo.
The district sustained a total loss of at least $3,333,448, as a result of the fraudulent scheme according to the information.
Joseph Palazzo was previously found guilty and is currently serving a sentence of more than 11 years in prison. Boyles was sentenced to more than two years in prison and Donadeo’s case is pending.
The case is being prosecuted by Assistant United States Attorney Rebecca Lutzko following an investigation by the Internal Revenue Service -- Criminal Investigation and the Federal Bureau of Investigation.
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.
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.
Toledo hospital agrees to improve access and services to those who are deaf or hard of hearingRead the Press Release
The ProMedica Toledo Hospital will revise its policies and procedures that ensure that patients or companions who are deaf or hard of hearing receive auxiliary aids and services to obtain effective communication during treatment, as well as train its staff on effective communication as required by Americans with Disabilities Act, said U.S. Attorney Steven M. Dettelbach.
ProMedica entered into the settlement to resolve an investigation pursuant to Title III of the Americans with Disabilities Act, conducted by the U.S. Attorney’s Office for the Northern District of Ohio. This hospital will also pay $10,000 to the complainant and $5,000 to the United States in a civil penalty.
“This settlement will ensure greater access to health care for those who are deaf or hard of hearing,” Dettelbach said. “Whether it is at arenas or apartment buildings or at health-care facilities, we will continue to enforce the Americans with Disabilities Act, which has improved the lives of countless Americans.”
The investigation began with a complaint made to the U.S. Attorney’s Office alleging that ProMedica Toledo Hospital violated the ADA by failing to provide appropriate auxiliary aids and services, including sign language interpreter services, to a patient who is deaf during critical interactions relating to the complainant’s medical care.
The complaint also included an allegation of retaliation when ProMedica’s Center for Women’s Health allegedly refused services to the complainant’s minor daughter during the course of the United States’ investigation.
Ensuring that medical care providers do not discriminate on the basis of disability is an issue of general public importance. The U.S. Attorney’s Office is authorized to investigate allegations of violations of the ADA and takes complaints from the public. The U.S. Attorney’s Office has the authority to, where appropriate, negotiate and secure voluntary compliance agreements, and to bring civil actions enforcing title III of the ADA should it fail to secure voluntary compliance.
A medical care facility that is a private, non-profit corporation, licensed by the State of Ohio is a “public accommodation” within the meaning of title III of the ADA. Under title III of the ADA, no person who owns, leases (or leases to), or operates a place of public accommodation may discriminate against an individual on the basis of disability in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of a place of public accommodation.
Statement by Attorney General Loretta E. Lynch on the departure of U.S. Attorney Steven DettelbachRead the Press Release
WASHINGTON – Attorney General Loretta E. Lynch released the following statement on the departure of U.S. Attorney Steven Dettelbach of the Northern District of Ohio:
“As the U.S. Attorney for the Northern District of Ohio, Steven Dettelbach has been a consummate public servant, an exemplary leader and an outstanding law enforcement officer. During his time in office, Steven successfully negotiated a transformative reform agreement with the Cleveland Division of Police with emphasis on better use-of-force policies, more training, increased accountability and more robust community engagement. He assembled an innovative coalition of law enforcement and medical professionals to address his district’s opioid epidemic – an approach that became a national model. And he served as an invaluable member of the Attorney General’s Advisory Council under both me and my predecessor, Attorney General Eric Holder. I want to thank Steven for his dedicated service to Ohio and to the nation and I look forward to all that he will continue to achieve in the months and years to come.”
Statement by Attorney General Loretta E. Lynch on the Departure of Steven Dettelbach as the U.S. Attorney of the Northern District of OhioRead the Press Release
Attorney General Loretta E. Lynch released the following statement on the departure of U.S. Attorney Steven Dettelbach of the Northern District of Ohio:
“As the U.S. Attorney for the Northern District of Ohio, Steven Dettelbach has been a consummate public servant, an exemplary leader and an outstanding law enforcement officer. During his time in office, Steven successfully negotiated a transformative reform agreement with the Cleveland Division of Police with emphasis on better use-of-force policies, more training, increased accountability and more robust community engagement. He assembled an innovative coalition of law enforcement and medical professionals to address his district’s opioid epidemic – an approach that became a national model. And he served as an invaluable member of the Attorney General’s Advisory Council under both me and my predecessor, Attorney General Eric Holder. I want to thank Steven for his dedicated service to Ohio and to the nation and I look forward to all that he will continue to achieve in the months and years to come.”
U.S. Attorney Dettelbach to step down next monthRead the Press Release
United States Attorney for the Northern District of Ohio Steven M. Dettelbach has announced that he had submitted his resignation to President Obama and Attorney General Lynch effective on Feb. 5, 2016.
Dettelbach, 50, stated that he plans to reenter private practice.
“Serving as the United States Attorney, and leading and working with the incredible men and women of this office and so many law enforcement agencies, has been the single greatest honor of my professional life,” Dettelbach said. “I want to thank President Obama for affording me that rare opportunity. I hope that in the future I can both serve my clients well and remain an active part of this incredible community through public service.”
As U.S. Attorney, Dettelbach continued to focus on corruption, violent crime and fraud while also making civil rights and cybercrime new priorities. He made efforts in each of those areas to not only ramp up enforcement, but to prevent crime by engaging the community through outreach and creative programming.
Dettelbach emphasized transparency, publicly issuing releases on nearly every case charged. He also took steps to enhance the internal review of cases, requiring for the first time prosecution memoranda and indictment review committees in significant cases. He created a dedicated unit to focus on civil rights violations, both criminal and civil, and dedicated two prosecutors to cyber enforcement and formation of the Northern Ohio Cyber Security Consortium with leading businesses in the area. He created a new position of outreach coordinator to better understand community needs, and successfully managed the office through unprecedented Washington-based budget crises, including a federal government shutdown and sequestration cuts, while continuing to bring significant and impactful cases and collect in each and every year several times the office budget in fines, civil judgments and forfeitures from crime proceeds.
Under his leadership, the office negotiated an agreement to reform the Cleveland Division of Police, with emphasis on better use-of-force policies, more training, increased accountability, supervision and more robust community engagement. It also entered into voting rights agreements that for the first time ever resulted in bilingual ballots in Lorain and Cuyahoga Counties in order to comply with Section 4(e) of the Voting Rights Act.
He also brought together a diverse group of stakeholders – hospitals, doctors, law enforcement, treatment professionals, people in recovery and others – to attempt to find a comprehensive solution to the district’s heroin and opioid epidemic. That approach has become a national model replicated throughout the country including Atlanta, Minneapolis, Maine and New Mexico.
Among the cases prosecuted under Dettelbach:
-
Human trafficking convictions against more than 40 defendants including Jeremy Mack, the Elyria man sentenced to life in prison for trafficking drug-addicted women and girls, and Jessica Hunt and Jordie Callahan, sentenced to 32 and 30 years in prison, respectively, for holding a woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor.
-
U.S. v. Antun Lewis, twice convicting the defendant now serving 35 years in federal prison for setting the deadliest house fire in Cleveland history, which killed eight children and one adult.
-
More than 1,000 firearms indictments filed against often violent felons during his time in office, one of the leading offices in the nation in that regard.
-
U.S. v. Randolph Linn, an Indiana man now serving 20 years in prison for driving to Ohio to set fire to the largest mosque in the Toledo area.
-
Five indictments using death-specification enhancements for people who sold heroin that directly contributed to a fatal overdose.
-
The indictments and convictions in U.S. v. Samuel Mullet et al. on charges of hate crimes based on five violent religiously based attacks on Amish victims, which were reversed based on a jury instruction error, and witness tampering which resulted in significant prison sentences for all 16 defendants.
-
Successfully prosecutions for fraud and bribery, one of which he personally tried, involving the collapse of the St. Paul Croatian Federal Credit Union, the largest credit union failure in United States history.
-
U.S. v. Kevin Dye, another case personally tried by Dettelbach resulting in the conviction and 60-year prison sentence of a violent felon for firebombing the Mansfield Courthouse and City Hall.
-
U.S. v. Schatz: William B. Schatz, the general counsel of the Northeast Ohio Regional Sewer District, took bribes totaling approximately $682,130 from Robert J. Kassouf, a contractor on NEORSD’s Mill Creek Tunnel project. Stanley Lojek was an intermediary for the bribes. Schatz also embezzled approximately $166,940 from the NEORSD. Schatz was sentenced to nearly six years in prison, Kassouf was sentenced nearly five years in prison and Lojek was sentenced to one year in prison.
-
U.S. v. Alatrash: Faisal Alatrash, a project superintendent for the Greater Cleveland Regional Transit Authority, was sentenced to more than eight years in prison following his trial for taking bribes from contractors and steering work to his wife’s cleaning company.
-
U.S. v. Ugochukwu: Christopher Ugochukwu is serving a 26-year prison sentence for leading an organization that brought heroin from Nigeria, Mexico, and Colombia and sold it throughout Greater Cleveland. Authorities seized more than 20 kilograms of heroin in 2010, believed to be the largest heroin seizure in Ohio history. Twenty-three people were convicted of crimes for their roles in the operation.
-
U.S. v. Ricks: Keith Ricks, the leader of a group that brought large shipments of heroin from Atlanta and Chicago and sold it around the East Side of Cleveland, was sentenced to life in prison. A jury found that Ricks led a conspiracy that included scores of people, robbed rival drug dealers and used violence to control the sale of heroin in the neighborhood around St. Clair Avenue and East 117th Street. Nearly 60 people were convicted in the case.
-
U.S. v. Wright, et al.: Douglas Wright, Brandon Baxter, Anthony Hayne, Connor Stevens, and Joshua Stafford convicted for the attempted use of a weapon of mass destruction for their efforts to blow up the Route 82 bridge that spans the Cuyahoga Valley National Park. Wright was sentenced to 11 years in prison, Baxter to nearly 10 years, Hayne to six years, Stevens to eight years and Stafford to 10 years in prison.
-
U.S. v. Akl, et al: Hor and Amela Akl, a married couple in Toledo, were caught attempting to send $200,000 in cash to Hizbollah in Lebanon that was to be concealed in the side panel of the door of a car that was to be shipped to Lebanon. Hor Akl was sentenced to more than six years in prison and Amera Akl was sentenced to more than three years in prison.
-
ISIL cases: Amir Al-Ghazi, of Sheffield Lake, was indicted on charges of providing material support to Islamic State of Iraq and the Levant (ISIL), as well as firearms and narcotics violations. Al-Ghazi is alleged to have pledged his support to ISIL via social media in 2014. From July 2014 to June 2015, Al-Ghazi made multiple statements trying to persuade others to join ISIL. He also expressed his own desire to perpetrate an attack on the U.S. and attempted to purchase an AK-47 assault rifle. Terrance McNeil, of Akron, was indicted for with soliciting the murder of members of the U.S. military. McNeil professed his support on social media on numerous occasions for ISIL and encouraged ISIL sympathizers to behead and stab members of the military in the U.S. Both cases are pending.
-
U.S. v. Persaud: Westlake cardiologist Dr. Henry Persaud was sentenced to 20 years in prison for performing unnecessary catheterizations, tests, stent insertions and causing unnecessary coronary artery bypass surgeries as part of a scheme to overbill Medicare and other insurers by $29 million.
-
U.S. v. Hazelwood, et al.: Nine people were convicted in one of the largest Internet pill diversion cases in the country and the first in the district. The case involved Hazelwoood and other doctors prescribing and dispensing hundreds of thousands of pills to people who contacted them via web sites Hazelwood controlled.
Dettelbach previously served for 12 years as a career federal prosecutor. During those years, he worked at the Department of Justice, Civil Rights Division, Criminal Section; U.S. Attorneys Offices in Maryland and Washington, D.C.; and from 2003 to 2006 in the Northern District of Ohio, as a member of the Organized Crime and Corruption Strike Force. As a line federal prosecutor, Dettelbach handled numerous high-profile cases, including public corruption and bribery cases such as U.S. v. Nate Gray and U.S. v. Emmanuel Onunwor, the prosecution of numerous corrupt officials and businesspeople involving the Cleveland Water Department, and U.S. v. Litten, a multimillion dollar bankruptcy fraud in Maryland. He also won convictions in what was, at the time, the largest human trafficking case ever brought in the United States, in which approximately 70 Thai women were held against their will and forced to work in El Monte, California.
Dettelbach is one of only five U.S. Attorneys to be appointed to the Attorney General’s Advisory Council by both Attorneys General Eric Holder and Loretta Lynch. Dettelbach chaired the subcommittee on Civil Rights during the entire length of his service as United States Attorney, tying him as the longest serving Subcommittee Chair of any United States Attorney in the Administration.
Dettelbach also was detailed to serve as Counsel for the United States Senate Committee on the Judiciary from 2001 to 2003. Dettelbach was previously a partner at the law firm of Baker & Hostetler, LLP.
Dettelbach graduated from Dartmouth College in 1988 and from Harvard Law School in 1991. He lives in Solon, Ohio with his wife and two children.
-
U.S. Attorney's Office collected nearly $41 million in 2015Read the Press Release
U.S. Attorney Steven M. Dettelbach announced that the Northern District of Ohio collected more than $40.7 million in Fiscal Year 2015 from criminal and civil actions.
Approximately $33.6 million was collected in criminal actions and about $7.1 million in civil actions.
Additionally, the office took in $12.6 million in civil and criminal forfeitures.
The office’s total overall budget for this fiscal year was about $16 million.
“Once again our office brought in millions of dollars and doubled our annual budget,” Dettelbach said. “In addition to thwarting terrorism, protecting the environment, enforcing civil rights laws, rooting out corruption and getting guns off the streets, this office protects the fiscal interests of the taxpayers and the Treasury.”
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse,” said Attorney General Lynch. “The collections we are announcing demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
The money is used to compensate crime victims, is distributed to state and local law enforcement partners who participate in investigations and is returned to the general treasury.
Among the largest collections this year:
United States v. Robinson Health System Inc.: The Ravenna-based nonprofit paid $10 million to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute by engaging in improper financial relationships with referring physicians.
The settlement involved Robinson’s financial relationships with a number of referring physicians that allegedly violated the Anti-Kickback Statute and the Stark Statute, both of which restrict the financial relationships that hospitals may have with doctors who refer patients to them. These relationships included management agreements that Robinson had with two physicians groups. These physicians allegedly failed to provide sufficient bona fide management services to have justified the payments that they received. Robinson disclosed these issues to the government. The company operated a number of health care facilities in Portage County, including Robinson Memorial Hospital.
United States v. Thomas Shumay: Shumay paid $400,000 in restitution last year. He was previously found guilty of mail fraud and making false statements in relation to his work as president of All Tools. In that capacity, he was responsible for ensuring that landing gear parts produced and sold by All Tools for use on military aircraft were developed and tested in compliance with military contract specifications.
United States v. Scott A. Fisher: Fischer, of Marion, Ohio, was previously found guilty of tax evasion for evading nearly $900,000 in federal income tax between 2006 and n2010. Fisher paid the unpaid taxes leading up to plea. He was sentenced to one year in prison and fined $250,000. That fine was paid last year.
The Justice Department collected approximately $23.1 billion in civil and criminal actions across the country in the 2015 fiscal year.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $16.2 billion in payments made directly to the Justice Department and more than $6.8 billion in indirect payments made to other federal agencies, states and other designated recipients.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
A complete breakdown of collections in the Northern District of Ohio over past decade is as follows:
2014: $356.7 million
2013: $23.9 million
2012: $79.7 million
2011: $48.6 million
2010: $42 million
2009: $17.7 million
2008: $36.7 million
2007: $63.5 million
2006: $80 million
2005: $51.4 million
2004: $22.3 million
Lorain man sentenced to eight years in prison for child pornographyRead the Press Release
James J. Paterson, 49, of Lorain, was sentenced to more than eight years in prison for receiving and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
Paterson knowingly received, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. This took place between September 10, 2010, through on or about November 17, 2014. Paterson possessed two computers that contained child pornography on March 30, 2014, according to court documents.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Elyria Office of the Federal Bureau of Investigation.
Five charged with trafficking heroin and crack cocaine in Youngstown; indictment includes specification for fatal overdose last yearRead the Press Release
A federal grand jury returned a 100-count indictment charging five Youngstown men with distributing heroin and crack cocaine, said Steven M. Dettelbach, 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 includes a sentencing enhancement charging that one of the defendants, Shayne Mascarella, distributed heroin that directly resulted in the July 19, 2015 death in Youngstown of a person identified in the indictment as L.Z.
Indicted are: William Williams, 33; Derrick Brown, 35; Shayne Mascarella, 22; Tyrell Hollis, 22, and Emmanuel Bunkley, 35.
“This group spread misery throughout the Mahoning Valley in the name of profit,” Dettelbach said. “They destroyed families and one of them is charged with supplying the heroin that killed someone last year. We will continue to do all we can to curtail Ohio’s opioid epidemic, including vigorous criminal prosecutions.”
“These individuals are responsible for bringing large quantities of illegal and deadly drugs to the streets of Youngstown,” Anthony said. “The collaborative effort between law enforcement agencies throughout this two-year investigation has been exceptional and we will continue to work together to make our cities safer.”
The indictment alleges the five men knowingly conspired to possess with the intent to distribute and to distribute heroin and cocaine base (crack cocaine) between July 2013 and July 23, 2015.
Williams supplied heroin and crack cocaine to Brown, Mascarella, Hollis, Bunkley and others for distribution in the Youngstown area. It was further part of the conspiracy that Brown supplied heroin and crack cocaine to Mascarella for distribution in the Youngstown area, according to the indictment.
On or about July 19, 2015, Mascarella distributed heroin to a person which resulted in a drug overdose and the victim’s death, according to the indictment.
It was further part of the conspiracy that cellular telephones, code words and phrases were used by the co-conspirators to facilitate their drug trafficking activities.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorneys Jason M. Katz and David M. Toepfer. The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, Mahoning Valley Violent Crimes Task Force, which includes officers from the Boardman Police Department and Mahoning County Sheriff's 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.
Former Postal carrier charged with delaying delivery of mailRead the Press Release
A federal grand jury returned a one-count indictment charging Keauntee Redfern, 37, of Cleveland, and a former U.S. Mail Postal Carrier, with delaying U.S. Mail, that was entrusted to him for delivery to citizens of Northeast Ohio, said Steven M. Dettelbach, U.S. States Attorney for the Northern District of Ohio.
The indictment alleges that Redfearn, a Postal Service Employee with the Cleveland Heights Branch Post Office in unlawfully detained and delayed first-class letters and other mail matter entrusted to him for intended delivery.
Assistant United States Attorney Karrie D. Howard is prosecuting the case, following an investigation by the U.S. Postal Service -- Office of Inspector General.
If convicted, the Court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.