Northern District of Ohio
Press releases recorded for this federal judicial district.
Convicted killer sentenced to 15 years in prison for having gun and body armorRead the Press Release
A Boardman man was sentenced to more than 15 years in prison for illegally possessing a firearm and body armor, law enforcement officials said.
Akira O. Jackson, 33, pleaded guilty earlier this year to two counts in federal court -- being a felon in possession of a firearm and being a felon in possession of a ballistic vest. He was sentenced to 188 months in federal prison.
On March 18, Jackson possessed body armor, a .40-caliber pistol and ammunition. Jackson was forbbiden by law from possessing these items because of prior convictions, including conspiracy to commit voluntary manslaughter, possession of a firearm by a felon, possession with intent to distribute marijuana and an additional conviction for possession of a firearm by a felon, according to court documents.
"This is a well-deserved sentence for a violent person who has no business carrying a firearm," said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
This case was prosecuted by Assistant U.S. Attorney Adam Hollingsworth following an investigation by ATF and the Boardman Police Department.
Trio charged for bank robberies in Parma and Parma HeightsRead the Press Release
A grand jury returned a three-count indictment related to three bank robberies in Parma and Parma Heights, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Russell C. Bowers, 29, of Lakewood, and Ashley Wentz, 23, of Parma, were each charged with three counts of bank robbery. Jason D. Spinelli, 40, of Cleveland, was charged with one count of bank robbery.
The indictment alleges that Bowers, Spinelli, and Wentz robbed the Citizens Bank, 5775 Chevy Road, in Parma, Ohio, a federally insured financial institution, on June 26, 2015.
The indictment further alleges that Bowers and Wentz robbed the Fifth Third Bank, 6809 West 130th Street, in Parma Heights, Ohio, a federally insured financial institution, on July 12, 2015; and the Citizens Bank, 6555 Pearl Road, in Parma Heights, Ohio, a federally insured financial institution, on July 17, 2015.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the Federal Bureau of Investigation, Cleveland Division, and the Parma and Parma Heights Police Departments.
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.
Tennessee man charged with child sex exploitationRead the Press Release
A grand jury returned a four-count indictment charging David K. Turner, of Knoxville, Tennessee, with engaging in illicit sexual conduct with a minor, distributing a visual depiction of a minor engaged in sexually explicit conduct, coercion and enticement of a minor, and travel with intent to engage in illicit sexual conduct, said Steven M. Dettelbach, U.S. 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 Canton Resident Agency and the Massillon Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Lorain man indicted for possessing images of child sex abuseRead the Press Release
A grand jury returned a two-count indictment charging Robert B. Ray, 52, of Lorain, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct, and with possessing child pornography, said Steven M. Dettelbach, U.S. 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, Elyria 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.
Former police officer indicted for selling firearms to felonsRead the Press Release
A former police officer was indicted for two counts of selling firearms to people he knew were felons, 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.
Kevin R. Lumpkin, 29, of North Olmsted, is accused of selling a Hi-Point .45-caliber rifle and a Ruger .380-caliber pistol on different occassions 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 court documents.
This case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the FBI.
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.
Former Parma housing official sentenced to prison for stealing $232,000Read the Press Release
A former employee at Parma Public Housing Agency was sentenced to more than a year in prison for stealing $232,000 from the agency, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Amy Belz, 34, of Brunswick, Ohio, was sentenced to 16 months in prison. She previously pleaded guilty to theft of government funds.
“This defendant lined her pockets with nearly a quarter of a million dollars that was meant to help poor people,” Dettelbach said. “Public employees who steal from taxpayers will be held accountable for their actions.”
Between 2008 and 2014, while Belz was program manager of the Parma Public Housing Agency, she stole $232,407.48 by writing 138 checks to herself, money which was provided to Parma from the U.S. Department of Housing and Urban Development. In order to conceal her theft of funds from Parma Public Housing Agency and HUD, Belz made the checks out to herself, but typed vendor names on the carbon copies in the Parma Public Housing Agency check registers. Belz then created false invoices from these legitimate Parma Public Housing Agency vendors, attached them to the false carbon copies, and placed them in the Parma Public Housing Agency files to make it appear that the vendor was paid for work, knowing that such was never actually ordered or completed, according to court documents.
The case is being prosecuted by Assistant United States Attorney Adam Hollingsworth after an investigation by the U.S. Department of Housing and Urban Development Office of the Inspector General and the Parma Police Department.
Elyria man indicted for possessing images of child sex abuseRead the Press Release
A grand jury returned a two-count indictment charging Mario Lopez Lopez, 34, of Elyria, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct, and with possessing child pornography, said Steven M. Dettelbach, U.S. 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, Elyria 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.
Elyria man faces child pornography chargesRead the Press Release
Fredrick Alston Thomas, 35, of Elyria, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment charges that from on or about December 4, 2014, through on or about February 1, 2015, Thomas knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On July 23, 2015, images of child pornography were also found on his smartphone, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum. This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Federal Bureau of Investigation, Elyria Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man sentenced to more than 15 years in prison for armed robberiesRead the Press Release
A Cleveland man was sentenced to more than 15 years in prison for multiple armed robberies of Family Dollar and Dollar General stores in Northeast Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Quentin Blade, 31, was sentenced to 190 months in prison. He previously pleaded guilty to multiple counts of conspiring to interfere with commerce by means of robbery, interference with commerce by means of robbery and brandishing a firearm during and in relation to a crime of violence.
Nicholas Daniel, 24, of Cleveland, also pleaded guilty to several counts related to his role in the conspiracy. Daniel is scheduled to be sentenced next month.
Between August 6, 2014, and September 24, 2014, Blade and Daniel conspired to rob numerous retail stores in Cleveland and East Cleveland. These stores include the Dollar General at 13741 Euclid Ave., Dollar General at 5133 Superior Ave., Dollar General at 2966 E. 116 Street, Dollar General at 2272 E. 55 Street (twice), Family Dollar at 1250 E. 105 Street and Dollar General at 9111 Miles Ave, according to court documents.
Blade and Daniel carried and brandished firearms during the incidents, according to court documents.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Cleveland Division, the Cleveland Division of Police, and the East Cleveland Police Department and with the assistance of the Cuyahoga County Prosecutor’s Office.
Two defendants plead guilty to forced labor scheme that exploited Guatemalan migrants at egg farmsRead the Press Release
A leader of a human trafficking ring pleaded guilty yesterday in federal court to charges that he lured Guatemalan minors and adults into the United States on false pretenses, then used threats of physical harm to compel their labor at egg farms in Ohio. The guilty plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio.
Aroldo Castillo-Serrano, 33, of Guatemala, pleaded guilty to a labor trafficking conspiracy, one count of labor trafficking, one count of witness tampering and a related immigration offense. His co-conspirator, Conrado Salgado Soto, 52, of Mexico, pleaded guilty on Aug. 5 to participating in the same labor-trafficking conspiracy, as well as an immigration offense, the Justice Department also announced today. 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, 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 for minimal amounts of money. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens and vaccinating chickens.
The defendants threatened workers with physical harm and withheld their paychecks in order to compel them to work. Castillo-Serrano also pleaded guilty to convincing a witness to lie to the FBI about the scheme. Eight minors, as young as 14, and two adults were identified in the indictment as victims of the forced labor scheme.
“These defendants exploited children who were poor, vulnerable and entirely at their mercy,” said Principal Deputy Assistant Attorney General Gupta. “We will pursue and prosecute such behavior with all of the tools at our disposal.”
“Our laws and a sense of common decency require that people not be treated like commodities,” said U.S. Attorney Dettelbach. “This defendant treated workers as if they were less important than the eggs that they would help produce. Now he is going to learn the hard way that in this nation, there is a big difference."
“The defendants forced adults and children to work and live in deplorable conditions in exchange for false promises,” said Special Agent in Charge Stephen D. Anthony of the FBI Cleveland Division. “These reprehensible actions are unacceptable and the FBI will continue to work with our partners to bring to justice those that engage in human trafficking.”
Charges are still pending against a third co-conspirator, Ana Angelica Pedro Juan, 21, of Guatemala. Pedro Juan is charged with labor trafficking and conspiracy to commit labor trafficking, as well as witness tampering and making false statements to law enforcement. Two other defendants, Conrado Salgado-Borbon and Bartolo Dominguez, have pleaded guilty to immigration offenses in connection with this case.
Castillo-Serrano’s sentencing will be scheduled at a later date, and Salgado Soto’s sentencing is scheduled for Dec. 14. The forced labor counts and the witness tampering count each carry a statutory maximum sentence of 20 years in prison. The charges involving immigration violations and false statements carry statutory maximum sentences of five years in prison.
The investigation is ongoing. The case is being investigated by the FBI Cleveland Office’s Mansfield Resident Agency, the Department of Homeland Security, the Marion Police Department and the Marion County Sherriff’s Office. The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio.
Businessman charged for trying to bribe East Cleveland councilmanRead the Press Release
An East Cleveland businessman was charged for attempting to bribe a councilman in that city in exchange for support in getting a liquor license, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland Office of the Federal Bureau of Investigation.
Mukundkumar Patel, 52, was charged in a criminal information with one count of bribery concerning programs receiving federal funds.
“This councilman acted as we expect all public officials would and immediately reported a bribe offer to the FBI, who did great work following up,” Dettelbach said. “The lesson of this case is simple: ‘briber beware.’”
“We will not tolerate individuals believing they can circumvent the law by bribing a public official,” Anthony said. “The FBI commends the public official involved for adhering to his ethical principles by not accepting the bribe made by this business owner.”
Patel began renovating the former bar area of McCalls into a Convenient Food Mart which would sell beer and wine. Doing so would require a liquor license, which requires a written application endorsed by the city of East Cleveland, according to the information.
Patel submitted a liquor license application. City officials told Patel they were not inclined to endorse his application but would consider his request after speaking with community stakeholders, according to the information.
On October 15, 2014, Patel met with an East Cleveland councilman, identified in the charges only as Public Official 1, and offered to pay $2,000 if the councilman would sign the application. The councilman refused and Patel raised his offer to $3,000. The councilman again refused and Patel told the councilman to name his price, according to the information.
Unbeknownst to Patel, the councilman contacted the FBI to report the bribe solicitation. On Oct. 23, 2014, Patel again met with the councilman, who was acting at the FBI’s direction. Patel offered the councilman $4,000 up front and $1,000 later in return for signing Patel’s beer and wine application, according to the information.
The next day, Patel and the councilman met again and Patel paid him $4,000 in cash. The councilman turned the money over to the FBI, according to the information.
This case is being prosecuted by Assistant U.S. Attorney Antoinette T. Bacon following an investigation by the FBI.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
A charge 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.
Statement from U.S. Attorney Dettelbach on the passing of Congressman Louis StokesRead the Press Release
"One of the first things I did when I became U.S. Attorney was arrange for Lou Stokes to address every federal prosecutor in the District. We were in the midst of a huge county corruption scandal, and public service was taking a public beating. But Lou Stokes was always there as a shining beacon of integrity, of excellence and most important of all for us, of justice. I will always remember not only his words and wisdom that day, and whenever we spoke, but the incredible example that his entire life set."
Mayfield Heights man accused of embezzling $677,000 from former employerRead the Press Release
A Mayfield Heights man is accused of stealing more than $677,000 from his former employer, 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.
Geno Trunzo, 51, was indicted on one count of making or possessing forged securities of private entities and four counts of money laundering.
Trunzo worked for a company that engaged in the retail sale of mattresses and bedding supplies from 2004 until December 2014. Trunzo was promoted to be the company’s controller in late 2005. In this role, he managed the company’s accounts payable , was responsible for paying the company’s business expenses and had access to the company’s books, records, checks and credit lines, according to the indictment.
Trunzo forged and created approximately 431 checks drawn on the company’s accounts by affixing, without authorization, a stamped image of the name of an authorized signer of the checks. Trunzo made the checks payable to himself and to third-party payees for his personal benefit, causing a loss to the company of approximately $677,131, according to the indictment.
The case is being prosecuted by Assistant U.S. Attorney Adam Hollingsworth following an investigation by the FBI.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former executive convicted of bribing former director of Cleveland VA Medical CenterRead the Press Release
A Virginia executive was convicted by a federal jury on 14 counts related to providing things of value to the former director of the Cleveland and Dayton Veterans Affairs Medical Center in exchange for confidential information about VA construction projects, law enforcement officials said.
Mark S. Farmer, 55, of Arlington, Virginia, was convicted on one count of conspiracy, one count of violating the Hobbs Act, two counts of wire fraud, six counts of mail fraud and four counts of theft of government property. He is scheduled to be sentenced Nov. 9.
Farmer was employed at CannonDesign, an integrated design firm headquartered in Buffalo, New York, that performed work for the VA. He worked in several different capacities, including associate principal.
Farmer and CannonDesign received VA records and things of value, including non-public information concerning the VA and streamlined access to public information concerning the VA, which William Montague had embezzled and stolen without authority from the VA. This was done to give Farmer and CannonDesign an advantage over other companies in the awarding and administration of VA business, according to court documents and trial testimony.
Montague, the former director of the Cleveland and Dayton Veterans Affairs Medical Center, previously pleaded guilty to 64 counts related to his role in the conspiracy. He is awaiting sentencing.
“Bribing a public official to obtain internal government documents and information for a competitive business advantage is illegal,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The FBI will continue to root out corruption at all levels.”
“Today's verdict shows contractors and VA executives who cheat the taxpayers and veterans will be held accountable,” said Gavin McClaren, U.S. VA OIG, Resident Agent in Charge, Cleveland.
Farmer asked Montague to obtain information concerning VA contracts and business, including VA records. Montague used his power and influence at the VA to gain access to VA employees in ways that Farmer could not. Montague gave false and misleading information to VA employees about Montague’s reasons for requesting VA records and information, according to court records and trial testimony.
The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon and Paul Flannery following an investigation by the FBI and United States Department of Veterans Affairs—Office of Inspector General.
Canton man faces charges for heroin and cocaineRead the Press Release
A federal grand jury returned an indictment charging Clifford Ramsey, 20, of Canton, with possession with the intent to distribute and distribution of approximately 163 grams of heroin and approximately 94.55 grams of cocaine, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Ramsey was apprehended in March 2015 by law enforcement after fleeing on foot from a traffic stop. Officers recovered two plastic garbage bags containing the heroin and cocaine during the foot pursuit, according to court documents.
If convicted, a 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 Canton Police Department, Stark County Safe Streets Task Force and the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Teresa Riley.
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.
Middleburg Heights man charged with tax fraud conspiracyRead the Press Release
A Middleburg Heights man was charged with operating a tax fraud conspiracy in which he and others knowingly and willingly prepared and filed dozens of inflated tax returns, sometimes in return for cash kickbacks, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Kathy Enstrom, IRS-Criminal Investigation Special Agent in Charge.
Towhidul Hussain, 36, was charged via criminal information with one count of conspiracy to defraud the United States and three counts related to assisting with the preparation of false tax returns.
Hussain operated a tax-preparation business operating as Liberty Tax at 6410 Harvard Ave. in Cleveland. His business operated through a franchise agreement with Liberty Tax Services, and Hussain had no training or experience in tax return preparation before buying the franchise, according to the information.
Hussain hired a woman identified in the charges as Co-Conspirator 1 to help with daily operation of the business. She showed Hussain how to add false information to tax returns to artificially inflate his clients’ tax refunds, including false medical expenses, false education credits and other false deductions. This took place between 2011 and 2014, according to the information.
Hussain and his co-worker directed some clients to take their tax refund checks to a neighborhood check-cashing store. Once the check was cashed, Hussain and the co-worker received a portion of the refund as payment. In 2012, Hussain received more than $20,000 in kickbacks from clients who received artificially inflated tax returns, according to the information.
This case is being prosecuted by Assistant U.S. Attorney Adam Hollingsworth following an investigation by IRS-Criminal Investigations.
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.
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.
Eight men indicted for conspiracy that brought heroin, cocaine and methamphetamine from Mexico to Texas and then ClevelandRead the Press Release
Eight men were indicted for their roles in conspiracy that brought large amounts of heroin, cocaine and methamphetamine from Mexico into Texas and then to the Cleveland area, law enforcement officials said.
Named in the 15-count indictment are: Jose Palacio, 40, of McAllen, Texas; Efren Vega, 47, of Cleveland; Heleodoro Zepeda, 40, of Texas; Hugo Aguilar, 38, of Mission, Texas; Jacobo Banda-Bermudez, 44, of Mexico; William Overdear, 50, of Cleveland; Anthony W. Konicek, 40, of Cleveland, and Abdel Khalil, 44, of North Ridgeville.
Palacio, Zepeda, Aguilar and Banda-Bermudez obtained kilogram quantities of heroin, cocaine and methamphetamine from suppliers in Mexico. Palacio and Zepeda then used family members, friends and vehicles equipped with hidden compartments to ship the drugs across the border into Texas, according to the indictment.
Palacio and Zepeda distributed some of the drugs to Vega in Cleveland. The rest went to suppliers in Houston. This took place in 2014 and 2015, according to the indictment.
Palacio, Zepeda and Aguilar robbed rival drug traffickers of their drugs in McAllen, Texas. They provided anonymous tips to law enforcement so rival drug dealers would be arrested. They also surreptitiously installed GPS tracking devices on their transport vehicles and on the vehicles of some competitors to monitor their movement throughout Mexico and the U.S., according to the indictment.
Once the drugs were in Cleveland, Vega distributed them to other dealers from various locations on the West Side, according to court documents.
“This group is charged with shipping pounds of heroin, cocaine and methamphetamine into Cleveland and laundering hundreds of thousands of dollars,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
“These eight individuals conspired to bring large amounts of heroin, cocaine and methamphetamines across the Mexico border into Texas and ultimately making its way to Northern Ohio,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “This wide-ranging investigation is another example of the comprehensive strategy by members of the Northern Ohio Law Enforcement Task Force to target, dismantle, and eliminate the most significant criminal enterprises bringing danger and narcotics to our city.”
"This investigation is an excellent example of collaboration between law enforcement agencies which was instrumental in successfully dismantling a major narcotics smuggling organization in the Cleveland area," said Marlon Miller, special agent in charge of HSI for Michigan and Ohio. "HSI will continue to utilize its broad authorities to aggressively target and take down groups who are distributing narcotics and posing a threat in our communities."
This case is being prosecuted by Assistant U.S. Attorneys Joseph M. Pinjuh and Henry F. DeBaggis following an investigation by Northern Ohio Law Enforcement Task Force and HSI. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights.
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.
Youngstown man faces cocaine chargeRead the Press Release
A federal grand jury returned a one-count indictment charging Juan Jose Rojas Pena, 20, of Youngstown, with attempting to possess with the intent to distribute cocaine, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on or about July 13, 2015, Rojas Pena knowingly and intentionally attempted to possess with the intent to distribute more than 500 grams of cocaine.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration and the U.S. Postal Service. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Youngstown man charged with operating crack house on Parkcliffe AvenueRead the Press Release
A federal grand jury returned a two-count indictment charging Christopher A. Brown, 35, of Youngstown, with maintaining a residence for the purpose of distributing crack cocaine and with possessing with the intent to distribute crack cocaine and heroin, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Count 1 of the indictment alleges that in or about June 2015, Brown knowingly and intentionally maintained a place on Parkcliffe Avenue in Youngstown, for the purpose of distributing crack cocaine.
Count 2 of the indictment alleges that on or about June 10, 2015, Brown knowingly and intentionally possessed with the intent to distribute more than 28 grams of crack cocaine and heroin.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration and the Youngstown Police Department, Vice Squad. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
Two charged with stealing mailRead the Press Release
A federal grand jury returned a one-count indictment charging Edward L. Dugan, 46, of Reynoldsburg, and Tonya Sue Carpenter, 41, of Athens, for stealing outgoing mail from residential mailboxes, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that Dugan and Carpenter stole mail from residential mailboxes on several occasions for about month.
Assistant United States Attorney Karrie D. Howard is prosecuting the case, following an investigation by the the U.S. Postal Service's Office of Inspector General.
If convicted, the court will determine the defendants’ sentence after a review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Owner of nonprofit charged with bank fraudRead the Press Release
A federal grand jury returned a one-count indictment charging Andre J. Grier, 41, of Cleveland, for presenting stolen checks to a local bank and receiving money under false pretenses, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Grier presented seven stolen checks totaling more than $62,000 a local bank to be cashed, misrepresenting that his nonprofit organization, Hood 2 Hood, Inc., earned them through various false business ventures. This took place between December 2014 and January 2015, according to the indictment.
Assistant United States Attorney Karrie D. Howard is prosecuting the case, following an investigation by the U.S. Postal Service’s 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.
Olmsted Township woman charged with embezzling from labor unionRead the Press Release
A two-count criminal indictment was filed charging an Olmsted Township woman with embezzling approximately $13,906 from Pipe Fitter Local Union No. 120, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Heather Banhidy, 50, formerly worked for Local 120 as a clerical employee. In that capacity, she embezzled funds from approximately December 2011 through September 2013. Banhidy also caused the falsification, concealment, withholding and destruction of union dues receipts and records of payments received by Local 120 as part of her embezzlement scheme, according to the indictment.
If convicted, the defendants’ sentences will be determined by the Court after review of the factors unique to this case, including the defendants’ prior criminal records, the defendants’ roles in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Om Kakani, following an investigation by the agents of the Department of Labor, Office of Labor-Management Standards.
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 the defendant guilty beyond a reasonable doubt.
Mansfield man charged with bank robberyRead the Press Release
A federal grand jury returned a two-count indictment charging Scott D. Tesca, 39, of Mansfield, with armed bank robbery, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment alleges in Count 1 that on December 15, 2014, Scott Tesca and others robbed the Richland Bank located at 460 West Cook Road, Mansfield, Ohio. Count 2 alleges that on January 15, 2015, Scott Tesca and others robbed the Chase Bank located at 1094 Lexington Avenue, Mansfield, Ohio.
If convicted, a 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 Federal Bureau of Investigation’s Mansfield Office. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
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 women indicted for stealing identities and filing false taxesRead the Press Release
Two Cleveland women were indicted for a conspiracy in which they stole other people’s identities and collected more than $326,000 in false tax returns, law enforcement officials said.
Named in the 43-count criminal indictment are Michelle D. Pugh, a/k/a Michelle Morman, 38, and Joi C. Tate, 37. They are charged with conspiracy to defraud the government, making false, fictitious and fraudulent claims for income tax refunds, theft of public funds and aggravated identity theft.
“This duo is charged with stealing money from the government and identifying information from customers,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
“These defendants stole identities and enriched themselves as if the IRS was their personal ATM,” said Troy Stemen, Acting Special Agent-in-Charge, IRS-Criminal Investigation, Cincinnati Field Office. “Our agents remain vigilant and will continue to work with the U.S. Attorney’s Office to root out these bad actors and bring them to justice.”
The indictment alleges that Pugh and Tate, acting together and with others, engaged in a false tax refund scheme in which they prepared at least 25 false income tax returns for the years 2010 and 2011, for approximately 20 people including Pugh, which claimed income tax refunds that were greater than the actual refunds, if any, to which the taxpayers were entitled.
Pugh, Tate and others gathered personal identification information used in filing the returns either by posing as legitimate tax preparers working through Pugh’s company, MP Tax Services, or through a network of associates. In some cases, Pugh and Tate obtained and used personal identification information of individuals without their knowledge of consent. Pugh and Tate did not list themselves as the actual tax preparer on any of the tax returns they filed in others’ names.
On each return, Pugh, Tate and their cohorts generated false refund claims, at least in part, by reporting a falsely inflated or fictitious wage income and a resulting false earned income credit. On some returns, Pugh, Tate and their confederates also claimed false dependents and/or reported false education and child tax credits, as reflected on fictitious Forms 8863 and 8812 filed with the IRS.
Pugh and Tate filed the returns electronically on behalf of taxpayers, through private and public internet connections. Generally, they did not provide a copy of the return to the taxpayer, and the taxpayer did not know the amount of the refund claimed or was told an incorrect amount. In the case of those individuals whose identities were used without their knowledge or permission, Pugh and Tate did not inform them that they received funds from the IRS and instead kept the proceeds for themselves.
The electronic filings included requests that the IRS direct-deposit refunds into bank accounts owned or controlled by Pugh. After receiving the refunds, Pugh, Tate and their co-conspirators paid only a portion of the refund, if any, to the taxpayer.
According to the indictment, Pugh’s, Tate’s and their co-conspirators’ falsely inflated refund claims on the returns filed in the scheme resulted in the delivery of approximately $326,265 in illicit refunds to the conspirators.
If convicted, the defendants’ sentences will be determined by the Court after review of the factors unique to this case, including the defendants’ prior criminal records, the defendants’ roles in the offense and the characteristics of the criminal conduct. In all cases, the sentences will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Om Kakani, following an investigation by the IRS – Criminal Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant guilty beyond a reasonable doubt.
Cleveland man indicted for cocaine conspiracyRead the Press Release
A Cleveland man was indicted for conspiring to possess with intent to distribute at least five kilograms of cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Anthony Milner, 31, was named in the two-count indictment. He is accused of conspiring with others to distribute at least five kilograms of cocaine between March and May 2015, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the U.S. Postal Service’s Office of Inspector General.
If convicted, the defendant’s 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.
Akron man sentenced to 30 months in prison for claiming he was disabled while actually workingRead the Press Release
An Akron man was sentenced to 30 months in prison for defrauding federal and state agencies out of nearly $350,000 by claiming he was disabled while actually working as a home-repair contractor, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
James Van Buskirk, 53, pleaded guilty earlier this year to 11 counts, including theft of government funds, wire fraud, and fraudulently securing Social Security benefits.
"These programs exist to help those who are truly disabled and cannot work," Dettelbach said. "We will continue to prosecute those who abuse programs like these for their own enrichment."
Van Buskirk stole $75,823 in Social Security benefits designated for the truly disabled by reporting complete disability while still performing physical labor as a home repair contractor. He similarly falsely applied for and received $269,932 from the Ohio Bureau of Worker’s Compensation (OBWC) through the same scheme to defraud. He executed this scheme from approximately November 2002 through April 2014, according to court documents.
Van Buskirk concealed and failed to disclose his self-employment, knowing that it would affect his right to Social Security disability benefits.
Assistant United States Attorney Matthew J. Cronin prosecuted the case following an investigation by the SSA Office of Inspector General and the OBWC.
Texas man sentenced to more than 15 years in prison for traveling to Ohio to have sex with 13-year-old girlRead the Press Release
A Texas man was sentenced to more than 15 years in prison for traveling to Ohio in an attempt to have sex with what he believed to be a 13-year-old girl, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Samuel E. Condo, Jr., 32, of Arlington, Texas, was sentenced to 188 months in prison by U.S. District Judge Benita Pearson. He pleaded guilty earlier this year to four counts: enticement, receipt and distribution of minors engaged in sexually explicit conduct, transportation of visual depictions of minors engaged in sexually explicit conduct and travel to engage in sexually explicit conduct.
From on or about October 20, 2014, through on or about October 24, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Condo knowingly used facilities and means of interstate and foreign commerce, that is, a cell phone and a computer connected to the Internet, to attempt to persuade, induce, entice and coerce an individual who had not attained the age of 18 years, that is, a 13-year-old girl to engage in illegal sexual activity with him. He also knowingly distributed numerous computer files which files contained visual depictions of real minors engaged in sexually explicit conduct, according to court documents.
On October 24, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Condo knowingly transported numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. He also knowingly traveled in interstate commerce, from Texas to Ohio, for the purpose of engaging in illicit sexual conduct with another person, that is, a 13-year-old girl, according to court documents.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Ohio Internet Crimes Against Children Task Force and the United States Secret Service.
Marion man indicted for distributing heroin and fentanyl that resulted in overdose deathRead the Press Release
A nine-count federal indictment was filed charging a Marion man with selling heroin and fentanyl that resulted in an overdose death, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and U.S. Drug Enforcement Administration’s Special Agent in Charge Joseph P. Reagan.
Eric L. Creagh, 32, was indicted on one count of distribution of heroin and fentanyl that resulted in death, three counts of distribution of heroin and fentanyl, three counts of distribution of heroin and two counts of being a felon in possession of firearms.
Creagh is accused of selling heroin and fentanyl on May 22 that resulted in the death of Christopher Wolford. He is also charged with possessing more than a kilogram of a mixture of heroin and fentanyl, as well as selling heroin and fentanyl at various dates in May and June 2015. Creagh is also accused of possessing a Ruger .380-caliber pistol and a Heritage .22-caliber revolver, despite a 2008 conviction for felonious assault.
“This defendant is charged with selling the blue-drop heroin that caused so many overdoses, heartache and even death,” Dettelbach said. “The DEA is to be commended for working with the local police to protect the citizens of Marion. This case should serve as yet another reminder that heroin and fentanyl should be avoided. Trying heroin is not only a mistake -- it may be the last mistake a person ever makes.”
Reagan said: “We have made it a priority to investigate the distribution of narcotics that result in death. Today’s charges send a strong message to all narcotic traffickers that they will face real consequences, for the harm that they inflict on the user and society. The level of cooperation by all of the law enforcement agencies in this investigation has been extraordinary and serves as a model for the future.”
According to a federal affidavit filed in the case earlier this year:
A confidential informant purchased more than 20 grams of "blue drop" heroin from Creagh on five separate occasions between May 30 and June 8.
Members of the Drug Enforcement Administration, the Marion Metro Drug Enforcement Unit (MARMET), the Marion Police Department and the Marion County Sheriff's Office executed search warrants at two homes owned by Creagh on June 10. Creagh was arrested and law enforcement agents recovered two firearms, approximately one kilogram of a heroin/fentantyl mixture, blue fabric dye, a face mask with a filtration system and rubber gloves, two hydraulic presses and approximately $45,000 in cash.
This case is being prosecuted by Assistant U.S. Attorneys Michael Freeman and Thomas Weldon following an investigation by the Drug Enforcement Administration, MARMET, the Marion Police Department, the Marion County Sheriff's Office and the Ohio Bureau of Criminal Investigation.
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.
Former letter carrier sentencedRead the Press Release
Former U.S. Postal Service letter carrier Philip A. Rizk was sentenced to two years of probation, fined $1,000 and ordered to pay $27,798 in restitution for working under-the-table at a bingo hall while receiving worker’s compensation, law enforcement officials said.
Rizk, of Middleburgh Heights, pleaded guilty earlier this year to two counts of making false statements to obtain federal compensation.
U.S. Postal Service Office of Inspector General Special Agent in Charge Monica Weyler stated: “Workers compensation benefits costs the Postal Service over $1 billion per year. The majority of that money is paid to injured workers that legitimately deserve it. However, a small number of individuals choose to not follow the rules and commit fraud against the system, as in this case. U.S. Postal Service Office of Inspector General special agents vigorously investigate allegations of workers compensation fraud, and seek prosecution and termination of benefits for individuals that do not merit compensation. To report allegations of postal employees committing workers compensation fraud, contact the USPS OIG at www.uspsoig.gov or 888-USPS-OIG.”
The case was prosecuted by Assistant U.S. Attorney Marisa Darden following an investigation by the U.S. Postal Service Office of Inspector General.
Two more charged in $54 million stock fraud caseRead the Press Release
Two criminal informations were filed charging Kieran Kuhn, 33, of Port Washington, N.Y., and Kona Jones Barbera, 35, of Asheville, N.C, each with one count of conspiracy to commit securities fraud and wire fraud, 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.
Kuhn and Barbera conspired with Zirk de Maison and others to defraud investors and potential investors in several public issuers, including Kensington Leasing, Ltd., Casablanca Mining, Ltd., Lustros, Inc., and Gepco Ltd., (the manipulated companies), by issuing millions of shares to themselves at little or no cost and then artificially controlling the price and volume of traded shares by, among other means, paying undisclosed commissions to brokers, former brokers, and boiler-room operators and promoters such as Kuhn and Barbera, for soliciting investors to make investments in, and fraudulently concealing the ownership interests of, the manipulated companies. This took place between April 26, 2011, and September 18, 2014, according to the information.
Little or no portion of the investments went to fund the operations of the manipulated companies. Rather, de Maison, Kuhn, Barbera and their co-conspirators used most of the investments to enrich themselves, according to the information.
For each of the manipulated companies, de Maison and other co-conspirators controlled a substantial number of outstanding shares through their personal companies, co-conspirators, and associates over which they had influence and control. Kuhn owned and operated a boiler room called Small Cap Resources in New York City, where he employed promoters such as Barbera to cold call and solicit potential investors to purchase shares of the manipulated companies. Zirk de Maison and others dictated what stocks Kuhn and Barbera pushed. The cold calls to potential investors typically coincided with favorable press releases or other information that Zirk de Maison caused to be released, according to the information.
Kuhn and Barbera touted the manipulated companies using high-pressure sales tactics and misrepresentations about the value of the companies and their stock. The boiler room promoters did not disclose that Zirk de Maison and other co-conspirators paid them commissions on the sale of Zirk de Maison’s and other co-conspirator’s stock to the investors, either on the open market or through private placements, according to the information.
de Maison and his co-conspirators caused more than $54 million to be invested in the purchase of stock in the manipulated companies and caused a loss to investors in the amount of approximately $27 million from the scheme. de Maison profited through the fraudulent scheme relating to the companies’ stocks. de Maison received and embezzled approximately $30 million in investor monies. Kuhn received and embezzled approximately $2.6 million. Barbera received and embezzled approximately $251,920, according to the information.
The informations were filed by Assistant U.S. Attorneys Christos N. Georgalis and Adam Hollingsworth after an investigation by agents of the Federal Bureau of Investigation.
If convicted, the defendants’ sentences will be determined by the Court after a review of factors unique to the cases, including the defendant's prior criminal record, if any, the defendant's role in the offenses, and the characteristics of the violations. In all cases the sentences will not exceed the statutory maximum and in most cases it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Public meeting Monday about applying for Community Police CommissionRead the Press Release
The Selection Panel for the Community Police Commission appointed by Mayor Frank G. Jackson will hold its second public meeting, Monday, August 3, 2015 at 6:00 pm at the offices of Hispanic Alliance, 3110 w. 25th St. Cleveland, OH 44109. The public meeting will consist of a brief presentation on the responsibilities of the Cleveland Community Police Commission and the application process. Members of the panel will respond to questions and comments from meeting participants regarding applicant eligibility, and the skills and areas of expertise the community would like to see represented on the Commission.
Application materials for the Cleveland Community Police Commission were released online on July 21, 2015 and are available on the Selection Panel website, https://www.clecpc.org. The Selection Panel website also contains background information about the Commission’s roles and responsibilities and a list of frequently asked questions pertaining to the application process. Links to the application are also available via the websites of the City of Cleveland and the U.S. Attorney’s Office for the Northern District of Ohio. The Selection Panel has made paper copies of the application available for pickup at Cleveland City Hall and all branches of the Cleveland Public Library. The Selection Panel is also working with community groups and faith-based organizations to facilitate the distribution of applications. Completed applications for the Commission must be submitted to the Selection Panel by August 6. Applications can be submitted online via https://www.clecpc.org, by email, U.S. postal mail, or in person to a secure drop-off box that is available at City Hall for the delivery of paper copies.
In addition to the 10 members recommended by the Selection Panel, the Commission will also include a member appointed by each of the three local police associations: the Cleveland Police Patrolmen’s Association, the Fraternal Order of Police and the Black Shield.
The appointed Community Police Commission will work to bring forward recommendations to the Mayor and Cleveland Division of Police on policies and practices that can help strengthen relations between the Cleveland police and the communities they serve. The commission will also issue progress updates to the community.
Employee of Cleveland nonprofit charged for bribe conspiracyRead the Press Release
An employee of a nonprofit that served Cleveland’s Lee-Harvard neighborhood was charged with conspiring with a businessman to bribe a city employee in order to receive payment from a $25,000 city grant despite the project’s failure to achieve the equal opportunity employment goals required by the grant agreement, 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.
Lawrence Payten, 57, of Cleveland, was charged via criminal information with one count of conspiracy to commit honest services mail fraud.
Payten worked at a nonprofit community organization that promoted commercial development in Cleveland’s Lee-Harvard neighborhood. Lejon C. Woods worked as a contract compliance officer in the City of Cleveland’s Office of Equal Opportunity. Woods previously pleaded guilty to receiving bribes from three other businesses.
Between November 2009 and August 2010, Payten and Woods accepted cash bribes from a businessman identified in the charges as “Co-Conspirator 1”. This person was a businessman who worked with Payten to locate land in the Lee-Harvard neighborhood to build a retail food and beverage business, according to the information.
The businessman and the City of Cleveland entered into Neighborhood Capital Funds Grant Agreement. The city awards funds for certain construction or rehabilitation projects and the recipients are subject to certain hiring goals. In this project, the Office of Equal Opportunity set a subcontractor participation goal of 15 percent for minority business enterprises, 7 percent for female business enterprises and 8 percent for Cleveland Area Small Businesses, according to the information.
Payten, Woods and the businessman met at City Hall in November 2009. Payten and the businessman told Woods that the businessman was not going to meet the OEO subcontractor guidelines and asked Woods to help them cover up the lack of compliance so the businessman could still receive the $25,000 Neighborhood Capital Funds disbursement, according to the information.
About two weeks later, Woods met with Payten and the businessman, in which the businessman paid Woods $1,500, promised Woods an additional $1,500 and promised Payten $2,500 for facilitating the arrangement between Woods and the businessman, according to the information.
Woods then falsified the OEO compliance documents relating to the construction project. On August 20 2010, the businessman received a NCF grant check for $25,000. Four days later, the businessman gave Woods the additional $1,500, according to the information.
“These rules were put in place to extend opportunity to other businesses, but Payten and his co-conspirators put their own financial gain above the rules,” Dettelbach said.
“Bribing a public official to fabricate numbers in order to avoid minority mandate requirements is never acceptable,” Anthony said. “The FBI will continue efforts to root out those that attempt to skirt the law by paying off an official.”
This case is being prosecuted by Assistant U.S. Attorneys Adam Hollingsworth and Henry F. DeBaggis following an investigation by the Federal Bureau of Investigation.
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.
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.
Cleveland Heights man sentenced to more than 11 years in prison for $1.1 million unemployment fraudRead the Press Release
A Cleveland Heights man was sentenced to more than 11 years in prison for conspiring to defraud states out of more than $1.1 million in unemployment insurance benefits, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Juan Sanders, 35, was sentenced to 139 months in federal prison. He previously pleaded guilty to one count each of conspiracy to commit mail and wire fraud, wire fraud,aggravated identity theft and money laundering.
Co-conspirators Trina Grant, of Cleveland, Ashley Robinson, of Warrensville Heights, and Robert Barrett, of Cleveland, have also been found guilty of crimes and sentenced.
“These defendants took advantage of a program designed to help people out of work and instead used it to enrich themselves,” Dettelbach said.
“This sentence illustrates the Office of Inspector General’s commitment to combating unemployment insurance fraud. Ensuring the accountability and integrity of the unemployment insurance program remains a high priority for the Office of Inspector General,” said James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
“Stealing innocent peoples’ identities to defraud safety net programs is detestable,” said Kathy Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “This defendant let greed be his guide and today’s sentence should send a strong warning that such acts will not be tolerated and when discovered, prosecuted to the fullest extent possible.”
The defendants conspired to defraud state unemployment offices in Ohio, California, North Carolina, Massachusetts and Illinois from about September 2011 to January 2014. Under this scheme, Sanders fraudulently obtained personal identifying information from unsuspecting individuals to submit fraudulent claims for unemployment insurance benefits, according to court documents.
Sanders also created state unemployment insurance accounts for multiple fictitious employers in Ohio, California, North Carolina, Massachusetts and Illinois. Sanders then filed claims from “employees” who had been purportedly laid off by the fictitious companies. Sanders caused benefit debit cards for the “employees” of these fictitious companies to be mailed to various addresses in Ohio, according to court documents.
Once the benefits were loaded or reloaded onto the debit cards, Sanders, Grant, Robinson and Barrett used the debit cards at various ATMs in Ohio and withdrew the fraudulently obtained money, according to court documents.
As a result of this scheme, approximately $1,174,767 in fraudulent unemployment benefits were paid from state agencies in North Carolina ($572,170), Ohio ($261,509), Illinois ($144,240), California ($129,600) and Massachusetts ($67,248).
Sanders used $16,900 in fraudulently obtained cash to pay off a car loan on his 2007 Jaguar XJ automobile as well as several months’ rent on a Cleveland Heights apartment, according to court documents.
The case was prosecuted by Assistant United States Attorneys Robert W. Kern, M. Kendra Klump, and James Morford following an investigation by the Department of Labor’s Office of the Inspector General and the Internal Revenue Service Criminal Investigation Division.
Solon man charged in murder-for-hire plotRead the Press Release
A Solon man was charged for his role in murder-for-hire plot, 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.
Dennis A. Totarella, 65, was charged via criminal information with one count of use of an interstate communication facility to commit murder for hire.
Totarella, working with James Martino, used cellular telephones and Internet websites as part of a plot to murder someone in exchange for $40,000. This took place between January and June 2013, according to the information.
Martino, 65, of Highland Heights, was indicted last month on one count of use of interstate commerce facilities in the commission of murder-for-hire and one count of financing extortionate extensions of credit. He has pleaded not guilty and his case is pending.
This case is being prosecuted by Assistant U.S. Attorneys Duncan Brown and M. Kendra Klump following an investigation by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the dourt after a review of 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. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. 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 Ohio men indicted for the production or possession of child pornographyRead the Press Release
Three Ohio men were indicted on federal charges related to the production or possession of child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The cases are not related.
A grand jury returned a two-count indictment charging John Clements, 32, of Willoughby, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct, and with possessing child pornography.
Bradley D. Dawson, 27, of Canton, was charged with producing, receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
The indictment charges that from on or about May 1, 2015, through on or about June 21, 2015, Dawson knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On June 22, 2015, images of child pornography were also found on his RCA Tablet. The indictment also charges that in or around May 2015, Dawson used, persuaded, induced, enticed, or coerced a four-year-old girl to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced or transmitted using materials that had been mailed, shipped, or transported in or affecting interstate commerce by any means, including by computer.
Joshua M. Buss, 26, of Spencer, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
The indictment charges that from on or about December 29, 2014, through on or about June 23, 2015, in the Northern District of Ohio, Eastern Division, and elsewhere, Buss knowingly received and distributed, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. The indictment also charges that on June 24, 2015, Buss possessed a computer 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.
The Clements case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the FBI Child Exploitation Task Force.
The Dawson case is being prosecuted by Assistant United States Attorney Carol M. Skutnik following an investigation by the Federal Bureau of Investigation, Canton Office.
The Buss case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following ann investigation by the Akron Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
North Royalton man sentenced to nearly three years in prison for mortgage-relief scamRead the Press Release
A North Royalton man was sentenced to nearly three years in prison for operating a loan-modification scheme in which he defrauded more than 90 homeowners struggling to make their mortgage payments out of $286,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Robert Walker, age 44, was sentenced ot 33 months in prison after previously pleading guilty to five counts of fraud.
Walker convinced homeowners on the verge of foreclosure to pay himself and his company an up-front fee of at least $1,995 but then did little or no work to get a loan modification for customers. He also promised customers that, if not modification was obtained, 80 percent of the fee would be reimbursed. But Walker never intended to reimburse those fees and when he failed to obtain a loan modification, he regularly refused the promised reimbursement, according to court documents.
According to court documents:
Walker incorporated and owned The Modification Group, or TMG, where he supervised and directed the employees. TMG did business under various names, including The Modification Group 4, U.S. Modification Group and Loan Modification Group, among others. It had offices at various times in Broadview Heights, Middleburg Heights, Bedford, Parma Heights, Ravenna and Cleveland.
TMG solicited people who were struggling to pay their home mortgages or that were pending foreclosure and offered to help improve their financial situation and avoid foreclosure by interceding on their behalf with the lending institution and obtaining a loan modification. TMG advertised itself – using direct mailings, telephone calls, a website and Internet and radio advertisements – as “specializ(ing) in loan modifications, debt settlements, credit repair, and financial planning services” and having “experienced negotiators that will secure your home with the lowest fixed rate available.” TMG claimed it “will eliminate or reposition all late payments back into your loan, bringing the account current, while also lowering your interest rate or payment, making it easier for you to afford.”
From 2009 through 2011, Walker devised a scheme to defraud by making representations that he knew TMG could not keep and had no intention of keeping, including: “”Are You In A Loan You Can’t Afford? We Will Modify It. Guaranteed.” Or “What [TMG] Can Do To Help: Lower interest rates (2-5.5 percent fixed) giving you a reduction in monthly payments; eliminate or shorten 2nd Lien, and/or lowering overall principle balance; Position yourself out of an interested only or adjustable rate mortgage and into a fixed 30 or 40 year payment.”
Walker, through TMG, required consumers to pay $1,995 or 1 percent of the mortgage balance, whichever was greater, up front, before TMG worked on obtaining a loan modification.
Walker directed his employees at TMG to solicit and accept clients for whom he knew TMG would not be able to obtain loan modifications on terms that that customers could realistically afford. Through TMG, he required customers to enter into written service agreements that were substantially one-sided, in favor of TMG. He also directed employees to tell potential customers that TMG would refund 80 percent of the fee paid if TMG failed to obtain a loan modification, when Walker had no intention of refunding the fee.
Walker, through TMG, prohibited customers from contacting their lending institution and directed customers to send any and all correspondence from their lenders to TMG.
TMG often failed to obtain any loan modification for the customer. In some cases, TMG never contacted its customer’s lending institution to discuss a modification even though the customer had paid substantial monies to Walker and TMG to do so.
Walker and his employees at TMG often created illegitimate reasons that they claimed voided TMG’s contract to avoid refunding customer’s fees. For example, TMG often told customers that they had not provided requested documents quickly enough, and terminated their contracts without a refund.
Walker, through TMG, told customers who attempted to cancel their contracts that doing so was a breach that voided their right to a refund. He often refused to issue a refund for customers for whom TMG had failed to obtain a loan modification unless the customer filed a complaint with a consumer protection agency.
Defrauded customers include residents in Lakewood, Cleveland, Eastlake, Streetsboro and North Ridgeville, as well as North Carolina, Virginia, Connecticut, Indiana and elsewhere, according to the court documents.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Federal Bureau of Investigation and the Ohio Attorney General’s Office, Consumer Protection Section.
Cleveland woman charged with theft of government fundsRead the Press Release
A federal grand jury indicted Selina Scott, 52 of Cleveland today for theft of government funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Scott fraudulently received Social Security Title XVI Supplemental Security Income benefits from March 2006 until May 2014, taking approximately $62,249 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.
Canton man charged with bank robberyRead the Press Release
A federal grand jury returned a one-count indictment charging Thomas Lee Jones, 25, of Canton, with bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on June 16, 2012, Jones robbed the PNC Bank located at 2800 Whipple Avenue, NW, Canton, Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal 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 Stark County Sheriff’s Office and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
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.
Selection Panel to launch application process for Community Police CommissionRead the Press Release
Applications for the Community Police Commission will be released July 20, at 7:00 p.m. during a public meeting held at Cuyahoga Community College’s Advanced Technology Training Center. The application and related materials are available online at clecpc.org. Links to Community Police Commission application will be accessible through the City of Cleveland and the U.S. Attorney’s Office for the Northern District of Ohio websites. Paper copies of the application will be available for pickup at Cleveland City Hall and all branches of the Cleveland Public Library.
Completed applications for the Commission must be submitted to the Selection Panel by Thursday, August 6, 2015. Applications may be submitted online via clecpc.org, by email, U.S. postal mail, or in person to a secure drop-off box that will be available at City Hall for the delivery of paper copies. The Selection Panel is working with community groups and faith-based organizations to facilitate the distribution of these applications throughout the city.
In addition to the 10 members appointed by the Selection Panel, the commission will also include a member appointed by each of the three local police associations: the Cleveland Police Patrolmen’s Association, the Fraternal Order of Police and the Black Shield.
The Community Police Commission will work to bring forward recommendations to the Mayor and Cleveland Division of Police on policies and practices that will help strengthen relations between the City of Cleveland Police Department and the communities they serve. The commission will regularly issue progress updates to the community.
Former Gates Mills postmaster charged with stealing more than $55,000Read the Press Release
The former postmaster of the Gates Mills Post Office was charged today with theft of property used by the U.S. Postal Service, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Monica Weyler, Special Agent in Charge of the U.S. Postal Service -- Office of Inspector General, Eastern Area Field Office.
Ann Apana, 66, of Maple Heights, Ohio, was charged by criminal information with a single count of theft of property used by the U.S. Postal Service.
The information charges that from at least June 12, 2009 until June 15, 2014, as part of a continuing course of conduct, Apana stole approximately $38,741.42 in money and merchandise from the Postal Service and made approximately $18,341.08 in unauthorized purchases of postage using customers’ credit card information.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Miranda E. Dugi following an investigation by special agents of the U.S. Postal Service -- Office of Inspector General.
Wellington man indicted for possessing images of child sexual abuseRead the Press Release
A grand jury returned a two-count indictment charging Ryan P. Reynolds, 29, of Wellington, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct and possessing child sexual abuse images, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the 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 Akron FBI.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Two men indicted for bank fraud involving short sales of Youngstown gas stationsRead the Press Release
A man from Warren, Ohio, and an Indiana man were named in 10-count federal indictment for their roles in a conspiracy to defraud banks out of millions of dollars through fraudulent short sales of gas stations in the Youngstown area and other means, law enforcement officials said.
Shaukat Sindhu, 56, of Warren, and Tahir Iqbal, 48, of Crown Point, Indiana, were each indicted on two counts of conspiracy to commit bank fraud, two counts of bank fraud, one count of making false statements to a financial institution. Sindhu is also charged with one count of corrupt interference with the administration of the IRS and four tax counts.
Sindhu owned several gas stations and other commercial property, but at times failed to make mortgage payments on these properties. Sindhu, Iqbal and others defrauded First Midwest and Consumers National banks by making false and misleading omission and representations about ownership of the properties between 2008 and 2013. Iqbal acted as a straw buyer for Sindhu in a short sale, enriching Sindhu by reducing or eliminating the principle owned on the properties, according to the indictment.
Iqbal also served as a straw buyer for Sindhu for a 16,800-square foot, nine-bedroom home in Oak Park, Illinois, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Chelsea Rice following an investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations.
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.
Sheffield Lake man indicted for providing material support to ISILRead the Press Release
A 28-count indictment was filed charging a Sheffield Lake man with providing material support to Islamic State of Iraq and the Levant (ISIL), as well as firearms and narcotics violations.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Steven D. Dettelbach of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division made the announcement.
Indicted is Amir Said Rahman Al-Ghazi, 38, also known as Robert C. McCollum. He was arrested last month after he attempted to buy an AK-47 from an undercover agent.
“The charges in this case should remind us that ISIL does not simply present a far-away threat,” U.S. Attorney Dettelbach said. “Through social media and other means, ISIL and its mantra of violence can seek to radicalize people of all backgrounds in prisons and communities right here in Ohio. We must keep up our guard.”
“This indictment demonstrates law enforcement’s number one priority -- to keep our communities and our nation safe,” said Special Agent in Charge Anthony. “It is clear that no area is immune from the influence of ISIL and its supporters. We hope this indictment will serve as a strong message to others who may consider providing support to terrorists. The FBI and our Joint Terrorism Task Force partners are committed to identifying and stopping these individuals.”
Al-Ghazi, who changed his name from Robert McCollum earlier this year, is alleged to have pledged his support to ISIL and Abu Bakr Al-Baghdadi 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 United States and had attempted to purchase an AK-47 assault rifle. Al-Ghazi has communicated with individuals he believed to be members of ISIL in the Middle East and took steps to create propaganda videos for ISIL, according to court documents.
Count one of the indictment charges Al-Ghazi with attempting to provide material support to ISIL. Counts two and three charge Al-Ghazi with being a felon in possession of a firearm. Counts four through 28 pertain to his sale of marijuana from February 2014 through last month.
This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Christos N. Georgalis following an investigation by the FBI’s Joint Terrorism Task Force.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the 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.
Four from Ohio indicted for defrauding investors out of $7 millionRead the Press Release
Four Ohio men were indicted for their roles in a conspiracy to defraud investors out of more than $7 million by selling unregistered securities and making several misrepresentations to investors about the product they purported to develop, law enforcement officials said.
Named in the 31-count federal indictment are: Kenneth Jackson, 58, of Glenmont; William Schureck, 80, of Lexington; Dennis Deciancio, 72, of Macedonia, and Daryl Dane Donohue, 66, of Mansfield. The counts include conspiracy to commit mail and wire fraud, conspiracy to launder money, mail fraud, wire fraud, money laundering, making false statements and other charges.
“These men travelled around the country and deliberately misled investors,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “They left financial hardship in their wake. Now they will be held accountable for their actions.”
“These four individuals conspired to misrepresent a product to their investors in order to make a profit,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue efforts to bring to justice those that have duped investors out of their hard-earned money.”
"Honest and law-abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money," said Kathy Enstrom, IRS Criminal Investigation, Special Agent in Charge, Cincinnati Field Office. "Financial fraud is not a victimless crime, and IRS-CI will continue with our law enforcement partners in bringing those responsible to justice.”
All four men were affiliated with Medical Safety Solutions, or MSS, a company Jackson founded in 2007 which operated out of Mansfield and had a purported “research and development center” at Jackson’s home in Glenmont, according to the indictment.
Jackson held the title of Director of Research and Development at MSS. Schureck co-founded the company held the title of Chief Executive Officer at MSS. Deciancio co-founded the company and attended trade shows on the company’s behalf. Donohue was a longtime associate of Jackson who communicated with shareholders of MSS and held himself out as an “FDA consultant” hired by the company for the sole purpose of obtaining Food and Drug Administration approval for the Sharps Terminator, according to the indictment.
The founders of MSS held the company out as an entity created to develop, market and sell a hypodermic needle destruction device they called the Sharps Terminator. The Sharps Terminator required premarket approval from the FDA before it could be sold in the United States, according to the indictment.
Jackson and Schureck filed a provisional application for a patent on the Sharps Terminator around April 2007 but did not file an actual patent application until September 2011. MSS filed a premarket approval application for the Sharps Terminator in October 2012, according to the indictment.
Between 2007 and May 2013, the defendants were engaged in the unregistered sale of securities. They did this by seeking out individuals to buy private shares of stock in MSS, but those shares were not registered with the Securities and Exchange Commission, according to the indictment.
They defrauded investors by inducing them to buy stock and making false and fraudulent misrepresentations about MSS and the Sharps Terminator, including: that MSS had submitted a premarket approval application when it had not; that FDA approval of the Sharps Terminator was forthcoming or imminent when MSS had not even initiated the approval process; that the FDA had approved the Sharps Terminator when it had not; that the product was “market ready” that was ready for mass production when it was not, and other misrepresentations, according to the indictment.
To make MSS appear functional and the Sharps Terminator market ready, the defendants took current and prospective investors to MSS’s “R&D facility” and showed them parts, a small number of assembled Sharps Terminator units, and large numbers of Sharps Terminator boxes, many of which were really empty, according to the indictment.
MSS investors, between 2007 and 2013, incurred a combined out-of -pocket loss of more than $7 million. Jackson and Schureck transferred the money to cover other expenses, and Jackson gambled more than $3.3 million at Mountaineer Casino between 2009 and 2013, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigations and the Food and Drug Adminstration.
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.
Cleveland man indicted for receiving package containing PCPRead the Press Release
A federal grand jury today returned an indictment charging Ahmad D. Fletcher, 24, of Cleveland, with receiving a package containing approximately 1,677 grams of Phencyclidine, or PCP, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The United States Postal Service seized the package and made a controlled delivery to Fletcher’s residence. Fletcher received the package containing the PCP, according to the indictment.
The United States Postal Service conducted the investigation. The case is being prosecuted by Assistant United States Attorney Marisa T. Darden.
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.
Sandusky man faces charges related to fraudulent invoicesRead the Press Release
A criminal information was filed against charging a Sandusky man with conspiracy and wire fraud for allegedly submitting fraudulent invoices, 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.
Robert A. Bellamy, 43, worked at an auto dealership. He conspired with someone identified in the charges only as MKC. This person was a regular customer at the dealership where Bellamy worked, according to the information.
MKC was responsible for managing Castalia Farms, a recreational facility then owned by Owens-Illinois, Inc. The company equipped Castalia Farms with several automobiles, which MKC had serviced at the dealership where Bellamy worked, according to the information.
Bellamy, MKC and others devised a scheme to defraud Owens-Illinois in which Bellamy created invoices for vehice repairs that never occurred, repairs on vehicles owned by MKC, his family or his friends and auto parts never installed in vehicles owned by Owens-Illinois. Bellamy submitted the invoices to through his employer to MKC and Castalia Farms, and Owens-Illinois paid the fraudulent invoices, according to the information.
The investigation is ongoing.
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, Sandusky, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Twenty people indicted for conspiracy that brought heroin and cocaine to Akron from New YorkRead the Press Release
Twenty people were indicted for their roles in a conspiracy in which kilogram-quantities of heroin and cocaine went from New York to Akron and then were throughout Northeast Ohio by drug dealers, law enforcement officials said.
Named in the 51-count indictment are: Emery Lee, 60, of Akron; Angel Pichardo-Martinez, 30, of the Bronx, N.Y.; Lesley Pichardo Feliz, 29, of the Bronx, N.Y.; Antoine Dortch, 25, of Akron; Ailyson Clipper, 29, of Akron; Leardrus Burris, 31, of Cuyahoga Falls; Ronnie Johnson, Jr., 44, of Mentor; Larry Smoot, 34, of Akron; Kyle Ballard, 30, of Akron; Collie Brooks, 51, of Akron; George Locke, Jr., 58, of Akron; Demond Baker, 39, of Akron; Tyrone Allen, 54, of Akron; Rhonda Collins, 46, of Akron; Sharae Ramsey, 25, of Akron; David Robinson, 38, of Akron; Divine Daniels, 24, of Akron; Orlando Reed, 43, of Akron; Reginald Blair, 44, of Akron; and Larry Dixon, 57, of Akron.
The charges include conspiracy to possess with the intent to distribute and distribution of cocaine and heroin in Count 1, and with use of a telecommunication facility to facilitate a drug trafficking offense in Counts 15-51. Blair is charged with possession with the intent to distribute heroin in Counts 2 and 3, possession with the intent to distribute cocaine in Count 5 and being a felon in possession of a firearm and ammunition in Count 12.
Lee is charged with possession with the intent to distribute heroin in Counts 4 and 8, possession with the intent to distribute cocaine in Counts 6, 7, and 9, and being a felon in possession of a firearm and ammunition in Count 13. Burris is charged possession with the intent to distribute heroin in Count 10 and being a felon in possession of a firearm and ammunition in Count 11. Collins is charged with being a felon in possession of a firearm and ammunition in Count 14.
Lee obtained heroin and cocaine from Pichardo-Martinez, Pichardo Feliz and others. Lee then provided the drugs to others named in the indictment for distribution. This took place dating back to 2010, according to the indictment.
The investigation was conducted by members of the Akron/Summit County HIDTA Initiative, and included assistance by the Summit County Sheriff’s Office, Akron Police Department, Barberton Police Department, Copley Police Department, Cuyahoga Falls Police Department, New Franklin Police Department, Ohio State Highway Patrol, Reminderville Police Department, Springfield Twp. Police Department, Stow Police Department, Summit County Prosecutor’s Office, Tallmadge Police Department, University of Akron Police Department, Drug Enforcement Administration, and Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney Teresa L. Riley.
This investigation has resulted in the recovery of six firearms, a Kevlar vest, ammunition, cocaine, crack cocaine, heroin, and U.S. currency.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two charged with paying bribes to former head of anti-poverty agencyRead the Press Release
Two men were charged for paying bribes to the former head of a Cleveland-area anti-poverty agency in return for contracts from the agency, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office, and Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General—Chicago Region.
Robert Moman and John Calvetta were each charged via criminal information with one count of honest services mail fraud.
Moman, 77, of Tougloo, Miss., and John Calvetta, 71, of Solon, are charged with paying bribes to Jacqueline K. Middleton, who served as president and chief executive officer of the Council of Economic Opportunities of Greater Cleveland.
The CEOGC was organized with the purpose of serving low-income people of Cuyahoga County and Greater Cleveland. The CEOGC administered several federal, state and local programs designed to address the needs of low-income individuals, including Head Start, the Community Services Block Grant program and the Home Energy Assistance program.
Middleton, of Shaker Heights, previously pleaded guilty to two counts of honest services fraud, one count of bribery in federally funded programs and one count of Hobbs Act Conspiracy. She was sentenced to 30 months in federal prison.
Moman worked as a consultant for CEOGC. He received approximately $169,036 from CEOGC from 2008 through 2012. Moman provided $11,200 in kickback payments to Middleton in return for favorable actions, such as her authorization of contracts to Moman, according to the information.
Calvetta was an employee of a home and business renovation company located in Cleveland. That company received approximately $318,699 from CEOGC between 2008 and 2010 for parking lot renovations, flooring installation,classroom remodeling and other work. Calvetta provided gifts, payments and other things of value to Middleton worth $9,249 in the form of home renovation work and payments to vendors for related supplies on her behalf. This was done in return for Middleton steering work to the company, according to the information.
The case is being prosecuted by Assistant U.S. Attorney Michael L. Collyer following an investigation by the Federal Bureau of Investigation and the Department of Health and Human Services—Office of Inspector General.
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.
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.
Ohio woman charged with making false statement to FDICRead the Press Release
A criminal information was filed charging Sharon E. Piper, 55, of Columbus Grove, Ohio, with making a materially false statement relating to a matter within the jurisdiction of the Federal Deposit Insurance Corporation, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Piper worked as the head teller for the Union Bank Company at its Columbus Grove branch. In 2010, she falsely stated the vault at the bank was in balance when she knew it was missing $145,000 in currency, according to the information.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Lima, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland woman faces charges related to Section 8 rentalRead the Press Release
A Cleveland woman faces criminal charges related to collecting Section 8 payments for renting a property to a relative, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Jasmine Ganaway, 36, was charged via criminal information with one count of theft of public money and one count of concealment of assets in bankruptcy.
Ganaway formerd LRG Development in 2006. She purchased residence on East 146th Street in Cleveland then transferred ownership to LRG. That residence in 2008 was certified for the Housing Choice Voucher Program, or Section 8, In November 2008, two of Ganaway’s relatives executed a lease agreement for part of the property on East 146th Street, despite a prohibition against leasing to relatives, according to the information.
Between 2009 and 2015, the Cuyahoga Metropolitan Housing Authority made deposits under the Section 8 program into Ganaway’s checking account totaling approximately $35,611, according to the information.
In October 2013, Gananway also fraudulently concealed her ownership interest in LRG and rental income as part of her bankruptcy proceedings, according to the information.
This case is being prosecuted by Assistant U.S. Attorney Robert J. Patton following an investigation by the U.S. Department of Housing and Urban Development-Office of Inspector General and the CMHA police.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
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.