Northern District of Ohio
Press releases recorded for this federal judicial district.
Northwood Man Faces Child Pornography ChargesRead the Press Release
An indictment was filed charging Steve Nesbit, 41, of Northwood, with receipt and distribution of child pornography and possession of child pornography, 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 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, Toledo. The case is being handled by Assistant United States Attorney Michael J. Freeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Man Indicted for Preparing and Filing False Tax ReturnsRead the Press Release
A 33-count federal indictment was filed charging a Cleveland man with preparing dozens of false tax returns and falsely claiming more than $133,000 in refunds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy A. Enstrom, Special Agent in Charge, Criminal Investigation, Cincinnati Field Office.
Sean Houston, 46, was indicted on one count of conspiracy to defraud the government and 32 counts of making false, fictitious or fraudulent claims.
Nikita Griffin, 39, of Atlanta, was also indicted on one count of conspiracy to defraud the government.
“As we enter tax season, this indictment should serve as a reminder to those who would file fraudulent tax returns and claim money to which they aren’t entitled,” Dettelbach said.
“Law-abiding citizens expect the government to hold accountable those who use deceit and fraud to line their pockets with money, especially when that money represents stolen federal taxes,” Enstrom said. “We will continue to partner with the U.S. Attorney’s Office and investigate the criminals who engage in such brazen and fraudulent conduct.”
In 2010, Houston prepared false tax returns, listing fictitious wages and income-tax withholdings when he knew no wages had been earned and no taxes withheld. The returns also claimed “making work pay” tax credits to which they were not entitled, according to the indictment.
Houston also sent the filed tax returns to the Santa Barbara Bank and Trust in San Diego in order to obtain refund anticipation loans, from which he took preparation fees. In the course of the scheme, Houston claimed refunds totaling $133,612 and obtained preparation fees totaling $9,605, according to the indictment.
Houston solicited Griffin to negotiate refund checks generated by the scheme. Griffing deposited three checks into a bank account he controlled and helped third parties negotiate additional checks, according to the indictment.
The case is being prosecuted by Assistant U.S. Attorney James V. Moroney following an investigation by IRS-CI.
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.
North Ridgeville Man Faces Child Pornography ChargeRead the Press Release
Sean M. Barnhill, 36, of North Ridgeville, was charged with distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about August 1, 2014, through on or about August 30, 2014, Barnhill knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. It is further alleged that between the dates of September 1, 2013 and January 8, 2015, Barnhill accessed with intent to view images of child pornography on his computer.
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.
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.
Mentor Man Charged with Stealing $86,000 from Social SecurityRead the Press Release
A federal grand jury today returned an indictment in U.S. District Court charging Harley J. Hervey, 63, of Mentor, with theft of public money, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The alleged theft of Social Security funds, occurring between 2007 and 2014, totaled approximately $86,926, according to the indictment.
The United States Social Security Administration Office of the Inspector General conducted the investigation. The case is being prosecuted by Assistant United States Attorney Justin Seabury Gould.
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.
Lakewood Man Indicted for Possessing and Distributing Child PornographyRead the Press Release
Cory A. Buckholz, 24, of Lakewood, was charged with distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about May 13, 2014, through on or about May 19, 2014, Buckholz knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. It is further alleged that on August 1, 2014, Barnhill possessed a black, homemade, tower computer, a Western Digital external hard drive, and a Seagate external hard drive that contained child pornography.
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.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the United States Secret Service and the Ohio Internet Crimes Against Children Task Force.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Akron Man Accused of Defrauding Agencies out of nearly $350,000Read the Press Release
An 11-count federal indictment was filed charging Akron man with 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, faces charges of 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."
The indictment alleges 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.
Van Buskirk executed this scheme from approximately November 2002 through April 2014, according to the indictment.
The indictment also alleges that 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 is prosecuting the case following an investigation by the SSA Office of Inspector General and the OBWC.
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.
Warrensville Heights Woman Accused of Stealing $189,000 from Social Security over 20 YearsRead the Press Release
A federal grand jury today returned an indictment charging Paula Laverne Gist, 67, of Warrensville Heights, with theft of public money, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The alleged theft of Social Security funds occurred between 1994 and 2014 and totaled approximately $189,564, according to the indictment
The United States Social Security Administration Office of the Inspector General conducted the investigation. The case is being prosecuted by Assistant United States Attorney Justin Seabury Gould.
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.
Two Cleveland Woman Accused of Using Counterfeit Checks to Get Prepaid Cards at Target StoresRead the Press Release
A federal grand jury today returned an indictment in U.S. District Court charging Stephanie Laverne Washington, 46, and Carolyn Badley-Pinson, 56, both of Cleveland, with bank fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The women are accused of using counterfeit checks to obtain prepaid debit or credit cards at 26 Target stores in Ohio, including stores in Willoughby, Mayfield Heights, Akron and North Olmsted between 2010 and 2013. Several financial institutions were defrauded a total of approximately $164,083 as a result of the scheme, according to the indictment.
The United States Secret Service and the Ontario (Ohio) Police Department conducted the investigation. The case is being prosecuted by Assistant United States Attorney Justin Seabury Gould.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Man Indicted for EscapeRead the Press Release
A grand jury returned a one-count indictment charging Kison Robertson, 23, of Cleveland, with escape from Oriana Halfway House, 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 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 agents of the United States Marshals Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Cleveland Man Charged with Aggravated Identity TheftRead the Press Release
An indictment was filed today charging Najee Muhammad, aka Paul Cook, age 50, of Cleveland, with three counts of aggravated identity theft, and one count of access device fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that Muhammad stole and used the identities of three separate individuals in 2013 and 2014. The indictment further charges that Muhammad knowingly and with the intent to defraud, traffic in and use one or more unauthorized access devices, obtained approximately $31,762 by fraudulently charging merchandise and services on various credit accounts, including Capital One, Dell, Galls Police Equipment, AT&T, CitiBank, Target, Safe Home Security, and Dish Network.If convicted, the defendant’s sentence will be determined by the Court after 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.
The case is being prosecuted by Assistant United States Attorneys Chelsea Rice and Adam Hollingsworth after an investigation by the Federal Bureau of Investigation.An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Virginia Man Faces Child Pornography ChargesRead the Press Release
A grand jury returned a three-count indictment charging David W. Vickers, 41, of Leesburg, Virginia, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct, enticement, and travel with intent to engage in illicit sexual conduct, 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 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 Ohio Internet Crimes Against Children Task Force and the United States Secret Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Cleveland Man Indicted for Fraudulently Obtaining Nearly $1 Million from Now-Closed Credit UnionRead the Press Release
A six-count federal indictment was unsealed today charging a Cleveland man with fraudulently obtaining nearly $1 million from the now-closed St. Paul Croatian Federal Credit Union, 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.
Joe Spaqi, 60, was arrested Wednesday. He was indicted on four counts of financial institution fraud and two counts of money laundering.
Spaqi aided and abetted credit union chief operating officer Anthony Raguz and a relative identified only as P.S. in a scheme to defraud the credit union between 2005 and 2009. Spaqi did this by requesting loans from the credit union through Raguz. He did not follow established procedures and made false statements to obtain these loans, according to the indictment.
Raguz approved multiple loans to Spaqi, Eclipse Bar and Grill (which Spaqi owned) or Luke Nue (an alias he used) which totaled approximately $965,422. Those monies were paid in checks to Spaqi, Eclipse, Nue, P.S. and unrelated third parties. As a result, the credit union and National Credit Union Administration suffered losses of approximately $965,422, according to the indictment.
Spaqi is also accused of depositing fraudulent loan proceeds from Eclipse Bar and Grill into her personal share accounts, according to the indictment.
The credit union, headquartered in Eastlake, was closed and then liquidated in 2010 after sustaining losses of approximately $170 million, making it one of the largest credit union failures in American history. Nearly 20 people have been convicted of crimes related to fraudulent lending that resulted in the credit union’s failure.
Raguz is currently serving a 14-year federal prison sentence. He is one of nearly 20 people have been convicted of crimes related to St. Paul Croatian Federal Credit Union.
This case is being prosecuted by Assistant U.S. Attorney Bridget M. Brennan and United States Attorney Steven M. Dettelbach following an investigation by the Cleveland Offices of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
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 Metal Plating Company Fined for Making Illegal Discharges into Sewer SystemRead the Press Release
A metal plating company in Cleveland was fined $50,000 for making illegal discharges with high concentrations of metals such as chrome and zinc into the sewer system, which in turn, after treatment, discharges to Lake Erie, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Kelly Plating Company, a metal-plating operation located in Cleveland, also agreed to make a $25,000 charitable donation to the Cleveland Foundation, which will be used to improve water quality in Northeast Ohio.
Thomas E. White, of Fairview Park, pleaded guilty earlier this year to two counts of making improper discharges. He is scheduled to be sentenced April 16.
White was an employee at Kelly Plating and responsible for operating the equipment which reduced the amount of pollutants discharged into the sewer system to an acceptable level. Starting around January 28, 2012, White changed the way wastewater at the Kelly Plating facility was processed. During the weekdays, White ensured that the pollution control equipment was operated properly, according to court documents.
However, on the weekends White bypassed the pollution control equipment and discharged partially treated wastewater and sludge directly into the sewer system. These discharges contained high concentrations of chrome and zinc. This practice ended on May 19, 2012, according to court documents.
“We here in Northeast Ohio know the importance of clean water, both for our economy and our quality of life,” Dettelbach said. “We will aggressively investigate and prosecute cases in which people pollute Ohio’s streams, rivers and lakes.”
“Discharging untreated and partially treated industrial wastewater into the sewer system is illegal and endangers human health, wildlife, and the environment,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “Today’s sentence reflects the seriousness of this offense and EPA’s commitment to protecting our natural resources and the communities that rely upon them.”
“Illegal dumping into Ohio sewers can result in severe consequences both for our environment and for human health,” said Ohio Attorney General Mike DeWine. “My office is committed to bringing to justice violators who knowingly participate in illegal dumping.”
“It was through the continuous water quality monitoring of the Northeast Ohio Regional Sewer District that it identified rising levels of pollution at its Westerly Wastewater Treatment Plant. The Sewer District then took action and identified the source, and then worked with the U.S. EPA, the Ohio EPA and the Ohio BCI to determine the extent of the wrongdoing by Kelly Plating,” said Julius Ciaccia, NEORSD Chief Executive Officer. “The sentencing of Kelly Plating should be a swift reminder that violating and jeopardizing the health of our waterways will not be tolerated by the Northeast Ohio Regional Sewer District.”
“Today’s sentencing concludes a successful investigation and prosecution of the discharge of chrome and zinc into waters of the state, which violated the federal Clean Water Act,” said Ohio EPA Director Craig W. Butler. “I’m proud of the work done by our Office of Special Investigations and all of our partners, including the U.S. EPA Criminal Investigation Division, the Ohio Bureau of Criminal Identification and Investigation and the Northeast Ohio Regional Sewer District.”
This case is being prosecuted by Special Assistant U.S. Attorney Brad Beeson following an investigation by the Ohio EPA, U.S. EPA, the Ohio Bureau of Criminal Investigation, and Northeast Ohio Regional Sewer District.
Youngstown Man Indicted for Narcotics and FirearmsRead the Press Release
A federal grand jury returned a four-count indictment charging Daron Nesbitt, 35, of Youngstown, with distribution of controlled substances, possession with intent to distribute controlled substances and with being a felon in possession of firearms and ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Count 1 of the indictment alleges that on or about October 20, 2014, Nesbitt distributed heroin and MDMA.
Count 2 of the indictment alleges that on or about November 5, 2014, Nesbitt distributed heroin and MDMA.
Count 3 of the indictment alleges that on or about November 12, 2014, Nesbitt possessed with the intent to distribute heroin, cocaine, MDMA and marijuana.
Count 4 of the indictment alleges that Nesbitt possessed a Raven Arms, model P25, .25 caliber pistol, and a Walther, model P22, .22 caliber pistol, and ammunition, after having been convicted on felonious assault in the Court of Common Pleas, Mahoning County, Ohio; trafficking in drugs in the Court of Common Pleas, Columbiana County, Ohio; and aggravated trafficking in drugs in the Court of Common Pleas, Trumbull County, Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mahoning Valley Law Enforcement Task Force. The matter is being prosecuted by Assistant United States Attorney 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.
Four from Northeast Ohio Indicted for Defrauding State Unemployment Agencies out of $1.1 MillionRead the Press Release
A 38-count federal indictment was filed charging four people from Northeast Ohio with 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.
Indicted are: Juan Sanders, 34, of Cleveland Heights; Trina Grant, 36, of Cleveland; Ashley Robinson, 30, of Warrensville Heights, and Robert Barrett, 40, of Cleveland. The charges include conspiracy to commit mail and wire fraud, wire fraud, mail fraud and aggravated identity theft. Sanders faces an additional count of aggravated identity theft.
“These defendants took advantage of a program designed to help people out of work and instead used it to enrich themselves,” Dettelbach said. “We will prosecute waste, fraud and abuse of government programs.”
The indictment alleges that 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.
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 the indictment.
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 the indictment.
The indictment charges that 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 the indictment.
The case is being 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.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Man Sentenced to 22 Years in Prison for Cocaine TraffickingRead the Press Release
A California man was sentenced to more than 22 years in federal prison for trafficking cocaine.
Dwight Erwin Herrera, 40, was convicted by a jury in November of conspiracy to distribute and distribution of cocaine greater than five kilograms. Herrera and others were arrested in Cleveland on Dec. 1, 2012, with approximately 10 kilograms of cocaine that had been transported to Cleveland from California, according to court documents.
Herrera is one of eight defendants who were indicted and convicted as part of this conspiracy. The group was responsible for the distribution of more than 50 kilograms of cocaine in Ohio, according to court documents.
The investigation into this conspiracy led to the subsequent indictments in federal and state court of an additional 23 people who have been convicted of participating in a drug conspiracy.
This case was prosecuted by Assistant U.S. Attorney Robert F. Corts and Margaret Sweeney following an investigation by the Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
Warren Pair Indicted for False Statements to a Firearms DealerRead the Press Release
A federal grand jury returned a one-count indictment charging Pamela E. Vincent, 43, and William Roberts, 40, both of Warren, with false statements to a federally licensed firearms dealer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on or about October 9, 2014, Roberts aided, abetted, and counseled Vincent in connection with the acquisition of a Ruger, model 9E, 9mm pistol, from J & D Firearms, Inc., 3323 Parkman Road, Warren, in that Vincent knowingly made a false and fictitious written statement which was intended to deceive J & D Firearms, Inc., as to a fact material to the lawfulness of the sale of the firearm, in that Vincent represented that she was the purchaser of the firearm, when in fact, she was purchasing said firearm for another individual.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
U.S. Attorney's Office Filed 167 Firearms Indictments Last YearRead the Press Release
The United States Attorney’s Office for the Northern District of Ohio filed 167 firearms indictments last year, U.S. Attorney Steven M. Dettelbach announced.
“Our office and our law enforcement partners will continue to work collaboratively to target the worst of the worst,” said Steven M. Dettelbach. “These include people who carry firearms, ammunition and sometimes body armor despite prior felony convictions, or those who help prohibited people to obtain firearms.”
“ATF’s mission is to combat violent crime and protect the public,” said Donald J. Soranno, Special Agent in Charge of the Columbus Field Division. “We will continue to actively investigate the criminal use of firearms and strive to make our communities safer for the people who live and work there.”
Broken down by geography in the district, the most indictments filed came out of the Cleveland office, with 86. That was followed by the Youngstown office (34), Akron office (27) and Toledo office (20).
Details of selected cases:
Operation Samson II: Sixty people were indicted and 110 firearms were seized as part of a summerlong enhanced enforcement initiative targeting the criminal possession, use and sale of firearms in Greater Cleveland. Forty-two people were indicted in federal court while 18 people were indicted in state court. Charges include engaging in the business of dealing firearms without a license, being a felon in possession of firearms and ammunition, possession of unregistered firearms that had been modified (sawed-off shotguns), possession and sale of firearms with obliterated serial numbers and related drug counts.
The indictments are the result of “Operation Samson II,” which was organized around three operational groups. The first used undercover operations to investigate people known to criminally possess, use and sell firearms, as well as people possessing firearms while conducting drug activities. The second group, referred to as the “Follow the Gun Group,” used firearms trace data and ballistics information from the National Ballistics Information Network to pursue leads related to firearms that have been diverted from legal commerce to criminal use. The third group involved ATF Industry Operations conducting inspections at Cleveland-area federal firearms licensees to ensure that dealers are selling firearms in accordance with federal law and regulations.
United States v. Barnette: Jeremy P. Barnette, 28, of Ravenna, was charged with making a false statement to a federally licensed firearms dealer. The indictment alleges that on or about March 27, 2014, Barnette, in connection with the acquisition of the following firearms: a Norinco, Model 84S-1, 5.56x45 rifle; a Ruger, Model 03800, 45 ACP pistol; and a Glock, Model 19, 9mm pistol, from Ohio Trading, 8855 State Street, NE, Louisville, Ohio, stated on the Firearm Transaction Report that he was purchasing the firearms for himself, when he was, in fact, purchasing the firearms for another individual who was a convicted felon. His case remains pending.
United States v. Powell: Lewis Powell, 37, of Warren, was sentenced to nearly 13 years in prison for of being an unlicensed dealer willfully engaged in the business of dealing firearms and conspiracy to possess with intent to distribute heroin and cocaine. Powell sold 20 firearms, including three with obliterated serial numbers, as well are heroin, according to court documents.
United States v. Green: Michael Green, 34, of Niles, was sentenced to 10 years in prison for being a felon in possession of firearms, ammunition and body armor. Green possessed a MAADI, model RML, 7.62” x 39” rifle; a Ruger, model SR40, .40 caliber pistol; 97 rounds of 7.62” x 39” ammunition; 16 rounds of .40 caliber ammunition and body armor after he had previously been convicted of burglary, assault on a peace officer and failure to comply with order or signal of a police officer.
United States v. Thompson et. al.: Jemel E. Thompson, 25, of Ashtabula, and Maranda M. Rabenold, 31, of Madison, pleaded guilty to firearms violations last year.
On or about August 8, 2014, Thompson was in possession of ammunition, after he had been previously convicted of arson in the Oakland County, Michigan, Circuit Court. On or about June 16, 2014, Rabenold, aided and abetted by Thompson, made false statements to the Great Outdoors Store, North Kingsville, Ohio in connection with the purchase of a HiPoint, 9mm pistol. On or about July 19, 2014, Rabenold, aided and abetted by Thompson, made false statements to LWS LJC, Inc., Jefferson, Ohio in connection with the purchase of a HiPoint JCP pistol. Thompson also pleaded guilty to heroin charges.
Both are scheduled to be sentenced in March.
Firearm prosecution statistics for calendar year 2002 through 2013 are as follows:
2002: 117 indictments
2003: 155 indictments
2004: 184 indictments
2005: 220 indictments
2006: 187 indictments
2007: 191 indictments
2008: 157 indictments
2009: 156 indictments
2010: 166 indictments
2011: 218 indictments
2012: 176 indictments
2013: 207 indictments
Three Toledo Residents Indicted for Forging Will to Fraudulently Obtain $2.2 MillionRead the Press Release
A 59-count federal indictment was unsealed today charging three Toledo residents for their roles in a conspiracy in which they are accused of forging a will to fraudulently gain control of an estate worth approximately $2.2 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Susan M. Pioch, 58; Margaret L. McKnight, 40, and Kurt L. Mallory, 51. They each face one count of conspiracy to commit bank fraud and mail fraud, 21 counts of bank fraud, seven counts of mail fraud and one count of aggravated identity theft. Pioch, McKnight and Mallory each face additional counts of money laundering. McKnight faces an additional count of structuring cash withdrawals, three tax counts and seven counts of causing a financial institution to fail to file a required report.
“This group lied, cheated and stole millions of dollars that had been amassed over a lifetime,” Dettelbach said.
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Martin E. Fewlas executed a will in 1993 devising his entire estate to his brother. If his brother did not survive Fewlas, the estate was to go to his nephew and then his great-nephew, identified in the indictment as JRM.
Fewlas owned the duplex located at 2557 Broadway Street in Toledo. He lived in the lower half and for approximately 10 years, McKnight and Mallory lived together in the upper half, according to the indictment.
Fewlas died on Aug. 28, 2010, leaving an estate worth approximately $2.2 million. On Sept. 2, 2010, McKnight, Mallory and Pioch – an attorney who had previously done legal work for McKnight and Mallory forged a will in Fewlas’ name. The forged will was drafted by Pioch and named McKnight as the executor and sole devisee of Fewlas’ assets. Pioch filed the forged will with the Lucas County Probate Court on or around Sept. 2, 2010. McKnight identified herself as executor of the estate and Pioch identified herself as attorney for the executor in probate court documents, according to the indictment.
By filing the forged will and concealing its fraudulent nature, Pioch, McKnight and Mallory succeeded in obtaining Probate Court authority to take possession of Fewlas’ assets. After obtaining those assets, they disbursed the assets to themselves for their own enrichment, according to the indictment.
Pioch, McKnight and Mallory used those assets to purchase, among other things, a used car dealership, a 2000 Discovery motorhome for $55,036, a classic 1972 Chevrolet El Camino for $17,000, a 2010 Kia Soul SUV for $21,338, as well as property. They also withdrew more than $500,000 in cash for Fewlas’ estate proceeds, according to the indictment.
JRM, Fewlas’ great nephew and the sole remaining devisee from the 1993 will, received nothing, according to the indictment.
The case is being prosecuted by Assistant U.S. Attorneys Gene Crawford and James V. Moroney following an investigation by the Internal Revenue Service – Criminal Investigations and the Toledo Police Department.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Streetsboro Man Indicted on Child Pornography ChargesRead the Press Release
A federal indictment was unsealed that charges a Streetsboro man with with two counts related to child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland Office.
Ronald Flick, 46, was charged with one count of receiving and distributing visual depictions of minors engaged in sexually explicit conduct and one count of possessing computers, hard drives and compact discs containing child pornography.
The case is being prosecuted by Assistant United States Attorney Michael Sullivan following an investigation by the Federal Bureau of Investigation, the Ohio Bureau of Criminal Investigation and the Streetsboro 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.
Uniontown Man Accused of Defrauding Investors out of $5.5 MillionRead the Press Release
An eight-count federal indictment has been returned charging a Uniontown man for his role operating a Ponzi scheme in which 19 investors were defrauded out of approximately $5.5 million, law enforcement officials said.
Geoffrey W. Nehrenz, 36, faces one count of securities fraud, three counts of wire fraud, one count of mail fraud, one count of fraud by an investment advisor, and two counts of money laundering.
“This defendant took advantage of people who trusted him and used their hard-earned money to fund his lifestyle,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“Geoffrey Nehrenz callously preyed on the desires of 19 individuals to make wise investments and duped them out of millions,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The FBI will continue to root out fraudsters like Mr. Nehrenz.”
"Promoters of Ponzi schemes prey upon trusting investors and then steal their hard-earned money. Investors should be wary that programs promising unbelievable returns on investments should be looked at carefully,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Remember the old cliché: 'If it's too good to be true, it probably is.’"
Between October 2009 and September 2013, Nehrenz promoted and sold investment contracts to clients through Keystone Capital Management, LLC (“KCM”) an investment adviser company located in Uniontown, which is an Ohio limited liability company registered as an investment adviser firm, but not registered with the Securities and Exchange Commission. Nehrenz was the managing member, president, and chief executive officer of KCM, according to the indictment.
Nehrenz induced 19 clients to invest in Keystone by promoting KCM’s ability to generate positive investment returns in equity markets while mitigating risk. He falsely represented to potential clients that their funds would be pooled, invested during the day in large- and mid-capitalization, publicly traded U.S. securities exclusively, and converted to cash overnight. Rather than investing the funds, Nehrenz used client money to pay his personal expenses, to pay business expenses to promote and prolong his investment scheme, and to make speculative, high-risk trades with domestic and overseas private placement vehicles without his clients’ authority, transactions known as “side pocket investments,” according to the indictment.
Nehrenz induced at least 19 clients to invest approximately $7 million into his hedge fund, resulting in losses to his clients in the amount of approximately $5.5 million.
The indictment was presented by AUSA Christos N. Georgalis after an investigation by agents of the Federal Bureau of Investigation and Internal Revenue Service.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to the case, including Defendant’s prior criminal record, if any, 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.
East Liverpool Woman Accused of $860,000 Bank FraudRead the Press Release
A federal grand jury returned a one-count indictment charging Mary Jo Schmidbauer, age 67, of East Liverpool, Ohio, with bank fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that from on or about August 14, 2007, through on or about September 9, 2013, Schmidbauer knowingly devised a scheme to obtain money under the custody and control of Home Savings and Loan, East Liverpool, Ohio, a financial institution insured by the FDIC, by means of materially false and fraudulent pretenses and representations.
It was part of the scheme and artifice that Mary Jo Schmidbauer, while employed by Home Savings and Loan, obtained permission from J.M. to manage money that J.M. deposited into accounts maintained by Home Savings and Loan. After retiring from her position, Schmidbauer obtained a power of attorney from J.M. to continue managing the accounts maintained by Home Savings and Loan, according to the indictment.
It was further part of the scheme and artifice that Schmidbauer withdrew cash from J.M.’s accounts for Schmidbauer’s own personal use. It was further part of the scheme and artifice that Schmidbauer transferred money from J.M.’s accounts into Schmidbauer’s accounts. Schmidbauer then withdrew that money for her own personal use, according to the indictment.
On or about August 14, 2007, Schmidbauer executed the scheme and artifice as set forth above, in that she withdrew $3,000 in cash from J.M.’s account for Schmidbauer’s own personal use. Schmidbauer withdrew this money while employed by Home Savings and Loan and without J.M.’s consent.
On or about September 9, 2013, Schmidbauer executed the scheme and artifice as set forth above, in that she withdrew $100,415.81 from J.M.’s accounts and transferred the money into Schmidbauer’s accounts for her own personal use. Schmidbauer transferred this money by misrepresenting the scope of her authority under J.M.’s power of attorney, according to the indictment.
As a result of the scheme and artifice described above, Schmidbauer obtained approximately $860,000 from J.M.’s accounts, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the St. Clair Township Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Woman Indicted on Tax ChargesRead the Press Release
A federal grand jury returned a 10-count indictment charging Nakesha M. Taylor, age 35, of Cleveland, with making false, fictitious, or fraudulent claims with the Internal Revenue Service, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Taylor publicly offered her services as a tax preparer using the name “Kesha Tax Service.” In January and February 2010, she carried out a scheme to enrich herself by obtaining portions of fraudulently inflated tax refunds from tax returns Taylor prepared and filed from her home on behalf of individual taxpayers.
The indictment charges that Taylor inflated the refunds without the taxpayers’ knowledge, resulting in false claims totaling approximately $101,405.
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 case is being prosecuted by Assistant United States Attorney Michael L. Collyer, following an investigation by the Internal Revenue Service, Criminal 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.
Thirteen Indicted for Interstate Drug Conspiracy Controlled from PrisonRead the Press Release
A 30-count federal indictment was unsealed charging 13 people with participating in a multi-state conspiracy to distribute heroin, cocaine and methamphetamine, a conspiracy which was controlled by an inmate inside an Ohio prison, law enforcement officials said.
Indicted are: Fernando Auces, 50, currently residing at Grafton Correctional Institution; Ricardo Morales-Almazan, 32, currently residing at FCI Big Spring in Texas; Alejandro Sanchez, 33, of Toledo; Roberto Agapito Vallejo-Becerra, 50, currently residing at East Hidalgo Detention Center in Texas; Alexander Gonzales, 38, currently residing at Southern Ohio Correctional Institution (Lucasville); Tammy Gibson, 40, of Akron; Javier Jimenez, 39, of Toledo; Noe Reyes, 33, currently residing at FCI Lucero in Alabama; Randy Koelblin, 39, of Cincinnati; Jasmine Reyes, 29, of Omaha, Neb.; Jenneth De La Rosa, 58, of Toledo; Daniel Ulis, 40, of Toledo and Anthony King, 41, currently residing at Ross Correctional Institution (Chillicothe).
All 13 people were indicted in Count 1 with conspiracy to possess with intent to distribute heroin, cocaine and methamphetamine.
Auces, while an inmate at Allen Correctional Institute in Lima, Ohio, with the assistance of Almazan and others, controlled a multi-state drug operation by communicating through a contraband cell phone with others outside the prison to arrange the delivery and sale of heroin, cocaine and methamphetamine, according to the indictment.
Between 2010 and 2014, Auces and others arranged for deliveries of large amounts of heroin to Ohio from suppliers in Indiana and Texas. He recruited friends and relatives, including Almazan, De La Rosa, Sanchez, Ulis, King, Jimenez and Koelblin to receive and distribute the heroin, cocaine and methamphetamine to Cleveland, Toledo and elsewhere, according to the indictment.
Auces, as part of the conspiracy, agreed with Gonzales, an inmate at the Southern Ohio Correctional Facility in Lucasville, Ohio, to share customers and drug suppliers. Auces arranged for Gonzales to distribute drugs to various locations throughout Ohio, including Cleveland, Akron/Canton, Dayton and Cincinnati, according to the indictment.
“This was a major interstate drug ring run from inside a prison cell,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “Thanks to the hard work of our law enforcement partners those who were helping this drug trafficker from the outside will soon be joining him behind bars. We will continue to work together to reduce the supply of heroin, cocaine and methamphetamine.”
“Refuge from law enforcement can't be found behind a prison wall,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The Northern Ohio Law Enforcement Task Force will continue to bring to justice drug dealers that distribute pois0n to our streets, no matter where they reside."
“Our collective enforcement efforts in this investigation have effectively shut down an operation that allegedly funneled copious amounts of illegal drugs into this community," Marlon Miller, Special Agent in Charge of HSI Detroit, which covers Michigan and Ohio. "These charges announced today are the culmination of an extensive multi-agency approach to combating drug trafficking organizations."
Counts 2 through 7 are substantive counts of distribution of methamphetamine or heroin. Counts 8 through 28 deal with the use of communication facility to facilitate a felony. Counts 29 and 30 deal with traveling interstate to distribute heroin. The indictment also seeks to forfeit $37,050 in cash seized from a storage locker in Toledo on April 4, 2014, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorneys Vasile C. Katsaros and Christian H. Stickan and Special Assistant U.S. Attorney Margaret Tomaro of the Ohio Attorney General’s Office following an investigation by the Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
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.
Willoughby Hills Man Sentenced to Prison for False Tax ReturnsRead the Press Release
A Willoughby Hills man was sentenced to 18 months in prison for filing false tax returns, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Alexander J. Cucu, 41, filed false tax returns in 2008, 2009 and 2010, underreporting his income by approximately $139,434. He pleaded guilty to three counts last year.
This case is being handled by Assistant U.S. Attorney Mark S. Bennett following an investigation by the Internal Revenue Service – Criminal Investigations.
Toledo Woman IndictedRead the Press Release
Aan indictment was filed charging Jewel A. Washington, 50, of Toledo, with two counts of unauthorized access of a computer for private financial gain and one count of unauthorized disclosure of tax return information, 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 reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Treasury Inspector General for Tax Administration, Detroit, Michigan. The case is being handled by Assistant United States Attorney Noah P. Hood.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Toledo Man Charged with Negligent Operation of a VesselRead the Press Release
A criminal information was filed charging Mark T. Vandeilen, 58, of Toledo, with grossly negligent operation of a vessel, 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 reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Coast Guard. The case is being handled by Special Assistant United States Attorney Benedict S. Gullo of the United States Coast Guard and Assistant United States Attorney Noah P. Hood.
Three Cleveland Men Accused of Defrauding States out of $233,000 in Unemployment InsuranceRead the Press Release
A 22-count federal indictment was filed charging three individuals with conspiring to defraud states out of $233,000 in unemployment insurance benefits, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Arthur Obleton, 62, Oltheus Hill, 53, and James Smith, 32, all of Cleveland. The charges include conspiracy to commit mail and wire fraud, mail fraud, wire fraud, and aggravated identity theft.
The indictment alleges that the defendants executed a “fictitious employer” scheme from about October 2011 to August 2013. Under this scheme, the defendants submitted false paperwork to states’ unemployment-insurance offices in which the defendants registered employers that did not actually exist and reported non-existent earnings for fictitious employees. The defendants then submitted false claims for unemployment-insurance benefits of the purported employees. In doing so, the defendants stole and used actual individuals’ personal identifying information that the defendants had obtained through misrepresentations.
The indictment charges that as a result of this scheme, approximately $233,830 in fraudulent unemployment benefits were paid from Illinois ($134,383), Iowa ($80,781) and and California ($18,666).
The case is being 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.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
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.
Inmate Accused of Threatening the PresidentRead the Press Release
An indictment was filed charging Michael D. Vaughn II, 26, an inmate at the Ohio State Penitentiary in Youngstown with threatening the President of the United States and the First Family, 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 reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Secret Service, Toledo, Ohio. The case is being handled by Assistant United States Attorney Michael J. Freeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Haskins Man Charged with Bank FraudRead the Press Release
A criminal information was filed charging Nicholas W. Bradley, 34, of Haskins, Ohio, with conspiracy to commit bank fraud and filing a false tax return from March 2006 and through December 2008, 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 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 Internal Revenue Service, Toledo, 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.
New York Man Indicted for Cyberstalking FBI AgentRead the Press Release
A grand jury returned a three-count indictment charging Ronald Bergrin, 56, of New York, New York, with cyberstalking, threatening in retaliation, and threatening in an interstate communication, an FBI agent from on or about December 2012 through on or about December 18, 2014, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
On Dec. 18, 2014, Bergrin threatened to assault a federal law enforcement officer, sending an email from the Northern District of Ohio in which he wrote the following: “She thinks she’s living in a safe place. A place where nobody can find out where she lives and nobody could get her. I’m going to teach her that I could crush her like the bug she is…She will never sleep at night again. She will have nightmares,” according to the indictment.
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. Attorneys Brian M. McDonough and Matthew Shepherd, following an investigation by agents of the Cleveland, Pittsburgh, and Newark 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.
Youngstown Man Charged with Child ExploitationRead the Press Release
Stephen Fleischer, 29, of Youngstown, was charged last week with sexual exploitation of a child, transferring obscenity to a minor and transportation of a minor, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The Indictment charges that on or about April 1, 2014, through on or about May 30, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Fleischer attempted to persuade, induce, entice and coerce a minor, that is, a 14-year-old girl to engage in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct, knowing and having reason to know that such visual depiction would be transported, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce.
The indictment also charges that on or about April 1, 2014, through on or about May 30, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Fleischer used a facility and means of interstate and foreign commerce, that is, a device connected to the Internet, to knowingly transfer obscene matter, that is, a visual depiction of his erect penis, to an individual who he knew had not attained the age of 16 years, that is, a fourteen 14-year-old girl.
The indictment also charges that on three separate occasions from on or about May 1, 2014, through on or about July 26, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Fleischer knowingly transported an individual who had not attained the age of 18 years, that is a 14 year-old girl, in interstate commerce from the State of Pennsylvania to the State of Ohio, with the intent that such 14 year-old girl engage in sexual activity for which Fleischer could be charged with a criminal offense.
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.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Youngstown office of the Federal Bureau of Investigation and the Austintown 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.
U.S. Attorney's Office Collects a Third of a Billion Dollars in 2014Read the Press Release
U.S. Attorney Steven M. Dettelbach announced that the Northern District of Ohio collected a record $356.7 million in Fiscal Year 2014 from criminal and civil actions handled exclusively or substantially by the United States Attorney’s Office for the Northern District of Ohio, more than 20 times the office’s annual budget.
The office’s total overall budget for the fiscal year was about $16.6 million.
Additionally, the office took in about $11.4 million in civil and criminal forfeitures.
“The work of this office and our partners not only recovers hundreds of millions of taxpayer dollars – it helps make crime victims whole, it punishes those who lie and cheat to enrich themselves and it hits criminals and scammers where it can hurt the most, right in the wallet,” Dettelbach said. “It is worth noting that the money collected by this office last year was 20 times more than our annual budget.”
Attorney General Eric Holder said: “Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people. Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And it shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
The money collected is used to compensate crime victims, is distributed to state and local law enforcement partners who participate in investigations and is returned to federal agencies for losses sustained by their programs, including the Medicare and Medicaid programs, and to the general treasury. Among the largest collections this year:
U.S. Bank: U.S. Bank paid $200 million to resolve civil allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Federal Housing Administration (FHA) that did not meet applicable requirements. As part of the settlement, U.S. Bank admitted that, from 2006 through 2011, it repeatedly certified for FHA insurance mortgage loans that did not meet U.S. Department of Housing and Urban Development underwriting requirements. U.S. Bank also admitted that its quality control program did not meet FHA requirements, and as a result, it failed to identify deficiencies in many of the loans it had certified for FHA insurance, failed to self-report many deficient loans to HUD, and failed to take corrective action required under the program. U.S. Bank further acknowledged that its conduct caused FHA to insure thousands of loans that were not eligible for insurance and that the FHA suffered substantial losses when it later paid insurance claims on those loans.
United States v. Diebold Inc.: Diebold Inc., the Ohio-based provider of integrated self-service delivery and security systems, including automated teller machines, paid a $25.2 million criminal penalty to resolve allegations that it violated the Foreign Corrupt Practices Act by bribing government officials in China and Indonesia and falsifying records in Russia in order to obtain and retain contracts to provide ATMs to state-owned and private banks in those countries.
United States, ex. rel. Gale v. Omnicare Inc.: Omnicare Inc., the nation’s largest provider of pharmaceuticals and pharmacy services to nursing homes, paid $124 million for allegedly offering improper financial incentives to skilled nursing facilities in return for their continued selection of Omnicare to supply drugs to elderly Medicare and Medicaid beneficiaries. Approximately $116 million of the settlement resolved allegations in a lawsuit brought under the whistleblower provisions of the False Claims Act that Omnicare submitted false claims by entering into below-cost contracts to supply prescription medication and other pharmaceutical drugs to skilled nursing facilities and their resident patients to induce the facilities to select Omnicare as their pharmacy provider.
Attorney General Holder announced that across the country, the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.The amount is more than three times the $8 billion collected in FY 2013. The largest civil collections were from affirmative civil enforcement cases, many of which were brought under the whistleblower provisions of the False Claims Act, in which the United States recovered government money lost to fraud or other misconduct or collected from individuals and/or corporations for violations of federal health, safety, civil rights, tax, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Department of Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.Below is a complete breakdown of collections in the Northern District of Ohio over the past decade:
2013: $23.9 million
2012: $79.7 million
2011: $48.6 million
2010: $42 million
2009: $17.7 million
2008: $36.7 million
2007: $63.5 million
2006: $80 million
2005: $51.4 million
2004: $22.3 million
Texas Man Indicted on Child Pornography ChargesRead the Press Release
Samuel E. Condo, Jr., 32, of Arlington, Texas, was charged last week with enticement, distributing and transporting visual depictions of minors engaged in sexually explicit conduct, transferring obscenity to a minor and travel with intent to engage in illicit sexual conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that 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.
The indictment also charges that on or about October 21, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Condo knowingly distributed in interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct.
The indictment also charges that on or about October 22, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Condo used a facility and means of interstate and foreign commerce, that is, a device connected to the Internet, to knowingly transfer obscene matter, that is, a video file containing a visual depiction of himself masturbating, to an individual who he believed had not attained the age of 16 years, that is, a law enforcement officer posing as a 13-year-old girl.
The indictment also charges that on or about October 24, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Condo knowingly transported, using any means of interstate and foreign commerce and in and affecting interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on or about October 24, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Condo knowingly traveled in interstate commerce, from the State of Texas to the State of Ohio, for the purpose of engaging in illicit sexual conduct with another person, that is, a 13-year-old girl.
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.
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.
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.
Lakewood Man Faces Child Pornography ChargesRead the Press Release
William S. Burnett, 59, of Lakewood, Ohio, was charged last week with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about October 28, 2012, through on or about September 20, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Burnett knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on October 22, 2014, Burnett possessed a computer hard drive that contained child pornography.
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.
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.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Toledo Man Indicted for Heroin ConspiracyRead the Press Release
A six-count federal indictment was filed charging a Toledo man with conspiracy to possess with intent to distribute a kilogram of heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Lee T. Turner, 29, was indicted on one count of conspiracy to possess with intent to distribute at least one kilogram of heroin, two counts of possession with intent to distribute heroin, two counts of operating a drug house and one count of being a felon in possession of a firearm.
“This defendant used firearms and homes in Toledo neighborhoods in his business the way others might use computers and calculators,” Dettelbach said. “He made his living dealing large amounts of heroin and now must face the consequences.”
“I would personally like to thank the Detectives and Agents from the Toledo Metro Drug Task Force for their hard work on this case,” said Toledo Police Chief William Moton. “The arrest of drug traffickers like Mr. Turner is an important piece in our strategy to significantly reduce the amount of heroin being sold in the Toledo area.”
Turner conspired to with others from November 2103 through Nov. 20, 2014 to possess heroin. Turner used 2830 Powhattan Parkway and 707 Phillips Avenue, both in Toledo, for the unlawful purpose of storing and distributing heroin, according to the indictment.
On Nov. 20, 2014, Turner possessed approximately 1,077 grams of heroin and a 9 mm pistol, despite previous convictions for bank robbery, robbery, kidnapping and other felony convictions, according to court documents.
Prosecutors are seeking to forfeit the two Toledo properties, as well as a 2009 Mercedes, a 1991 Chevrolet and a 2002 Mini Cooper, according to the indictment.
The case is being prosecuted by Assistant U.S. Attorney Alyssa Sterling following an investigation by the Toledo Metro Drug Task Force, which is made up of representatives from the Toledo Police Department, Federal Bureau of Investigation, Lucas County Sheriff’s Office and other law enforcement agencies.
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, the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Youngstown Man Charged with Failing to Register as a Sex OffenderRead the Press Release
A federal grand jury returned a one-count indictment charging Anthony Rivera-Santana, 38, of Youngstown, with failure to register as a sex offender, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.The indictment charges that beginning on or about May 1, 2013, to December 3, 2014, Rivera-Santana failed to register as a sex offender as required under the Sex Offender Registration and Notification Act, after having traveled in interstate commerce.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the 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 United States Marshals 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.
Ten People Indicted for Attending Dog-Fighting Venture in AkronRead the Press Release
Ten people were indicted in federal court for attending an animal-fighting venture, law enforcement officials said.
Indicted are: Alvin Banks, 56, of Akron; Carlton Davis and Anthony L. Harris, both 41 and both of Gary, Ind.; Donell Higginbotham, 35, of Pittsburgh; Mark Terrell McCraw, 29, of Hersporia, Calif.; Samuel G. Mobley, 38, of Gastonia, N.C.; Corey B. Moorefield, 45, of Pittsburgh; Darius D. Muse, 24, of Victorville, Calif.; Ryan A. Sadler, 32, of Gastonia, N.C. and Tommy L. Walker, 60, of East Chicago, Ind.
The indictment was announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office, Akron Police Chief James Nice, Summit County Sheriff Steve Barry and Summit County Prosecutor Sherry Bevan Walsh.
Banks and McCraw face additional counts of sponsoring and exhibiting a canine in an animal fighting venture, as well as buying, selling, delivering, possessing, training and transporting canines for participation in an animal fighting venture.
Banks has also been charged with being a felon in possession of firearms and ammunition, possession with intent to manufacture and distribute less than 50 marijuana plants or less than 50 kilograms of marijuana, and for possession of firearms in furtherance of a drug trafficking crime.
Federal and local authorities raided a home on Cordova Avenue in Akron on Nov. 15, 2014 as part of an investigation into dog fighting. In addition to firearms, narcotics and more than $52,000 in cash, investigators discovered a blood-stained 16x16 foot ring used as part of an animal fighting venture, as well as two “break sticks” used to pry a dog’s mouth and teeth off another dog when the fight is finished. They also found eight pit bull or pit bull mixes, two of which were covered in blood and had fresh wounds from a fight that occurred just prior to the execution of the search warrant, 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 records, if any, a 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 Akron Police Department, the Federal Bureau of Investigation and the Summit County Sheriff’s Office, with assistance from the Summit County Prosecutor’s Office and the Humane Society of Greater Akron. 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.
Seven People and Florida Company Indicted for Health Care Fraud at Shaker Heights Surgical CenterRead the Press Release
A five-count indictment was filed charging seven people and a Florida company for their roles in a multi-million dollar health-care fraud conspiracy involving an experimental form of chiropractic manipulation, law enforcement officials said.
Indicted are: Physicians Surgical Group (PSG), a medical billing company headquartered in Boca Raton, FL.; Christopher Liva, 36, Edward Liva, 64, Carolyn Via, 51, all of Boca Raton, FL; Mark Fritz, age unknown, of Coral Springs, FL.; John Nickels, 60, Highland Heights; John Fortuna, 41, of Avon, and Antony Simone, 40, of Cleveland.
The Livas, Fritz, Nickels, Fortuna, Simone and the company are charged with one count each of conspiracy, wire fraud and health care fraud. Those six people are also charged with one count of money laundering. Ed Liva, Chris Liva and Via face an additional count of money laundering.
PSG was owned by Christopher Liva, Edward Liva and Carolyn Via. Those three people, along with four others not named in the indictment, also owned Shaker Heights Surgical Center, located at 3235 Lee Road. Fritz was the chief financial officer at PSG. Fortuna and Simone were licensed chiropractors while Nickels was a medical doctor and anesthesiologist, according to court documents.
The defendants deceived various private insurance companies to pay millions of dollars on behalf of patients who underwent an experimental form of manipulation under anesthesia at Shaker Heights Surgical Center. Manipulation under anesthesia is an aggressive form of therapy typically reserved for patients who had failed with conservative chiropractic care. There were serious risks associated with it, according to the indictment.
Because of the pain involved, patients were put under conscious sedation and it was recognized as a surgical procedure. It was not performed in an office setting but rather an outpatient surgical facility and typically generated three types of insurance claims -- for professional fees, facility fees and fees for anesthesia services, according to the indictment.
Beginning in 2008, Chris Liva and others began marketing Shaker Heights Surgical Center and the manipulation under anesthesia procedure to chiropractors in Ohio, typically at restaurants in downtown Cleveland or the Youngstown area. In return for referring patients to Shaker Heights Surgical Center for the manipulation under anesthesia procedure, chiropractors were paid a flat fee of $4,000 per patient referred for a three-day session of procedures. Patients were advised they would not have to pay anything for the procedure, according to the indictment.
The defendants disregarded diagnoses, used false diagnoses, submitted false billing claims, represented that procedures were performed by osteopathic and medical doctors when in reality they were performed by osteopathic doctors and chiropractors, waived patients’ required co-payments and deductibles, and took other steps as part of the criminal conspiracy. This took place between 2007 and 2010, according to the indictment.
Prosecutors are also seeking to seize property derived from the criminal conspiracy, including two properties in Boca Raton, FL., a Royal Oak Offshore Chronograph watch and 4.18-karat diamond stud earrings, as well as money, according to the indictment.
“This group bilked insurance companies through a series of false claims and diagnoses to get money, diamonds and expensive homes,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
“This clinic was established not to help the sick and injured, but for the purpose of stealing insurance money,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “The individuals charged provided patients with a false diagnosis and submitted inflated claims to insurance companies – all in an effort to line their own pockets. The FBI, along with our federal, state, local and private industry partners, is committed to prosecuting these health care fraud schemes.”
“These defendants went to great lengths to try and hide their ill-gotten cash,” said Kathy Enstrom, Special Agent in Charge, Internal Revenue Service, Cincinnati Field Office. “The IRS will continue to follow the money trail in criminal conspiracies.”
The case is being prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Christos N. Georgalis following an investigation by the FBI and IRS-CI.
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.
Pepper Pike Woman Indicted for $476,000 ID Theft and Tax Fraud SchemeRead the Press Release
A Pepper Pike woman was indicted for an identity-theft scheme in which she attempted to claim $476,000 in fraudulent tax refunds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Ghana Johnson, 45, was indicted on one count of wire fraud, five counts of filing false claims for income tax refunds and five counts of aggravated identity theft.
"This defendant stole identities from unsuspecting people and then tried to get rich off of taxpayers," Dettelbach said.
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” Enstrom said. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers.”
She electronically filed 106 false, fictitious, and fraudulent tax returns for tax years 2010 and 2011 — in her own name and others’ — claiming a total of $476,503 in tax refunds. Johnson requested that these false income tax refunds be paid by direct deposit to prepaid debit cards, according to the indictment.
Johnson used stolen means of identification, including names and Social Security numbers, to execute her scheme. She obtained these means of identification in a variety of ways, including from stolen admission records from a medical and dental assistant school in Cleveland, according to the indictment.
Johnson held herself out to be an income tax preparer to family, friends, and others; even though Johnson did not list herself as an income tax preparer on any of the fraudulent income tax returns she filed in the names of others, according to the indictment.
Johnson falsified wage income, federal income tax withholdings, dependents, exemptions, and tax credit information in order to obtain income tax refunds for which neither Johnson nor the individuals she prepared the income tax returns for were entitled to receive. Many of the fraudulent income tax returns filed by Johnson shared common characteristics, including addresses, employers, wages, federal income tax withholdings, and tax credits, according to the indictment.
The Internal Revenue Service, Criminal Investigation Unit, in Cleveland, Ohio conducted the investigation. The case is being prosecuted by Assistant United States Attorney Miranda E. Dugi.
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.
Four People Sentenced to Prison for $360,000 Identity Theft SchemeRead the Press Release
A Cleveland Heights woman was sentenced to nearly 15 years in prison for his role in a widespread identity-theft scheme, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Darnell Nash, 29, was sentenced today to 175 months in prison and ordered to pay $361,341 in restitution. She is the last of four people to be sentenced in the identity theft scheme.
"This crime ring stole people's identities and used them to illegally get hundreds of thousands of dollars," Dettelbach said.
“This sentence sends a clear message that those seeking to commit unemployment insurance fraud will be held accountable. Combating unemployment insurance fraud remains a high priority for the Office of Inspector General. We will continue to work with our law enforcement partners to aggressively investigate those who obtain benefits to which they are not entitled,” 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.
Nash, Kennard Berts, 21, of Cleveland Heights, Dwayne Buchannan, Jr., 22, of Cleveland, and Justin Davis, 26, of Cleveland Heights, indictmented in October on charges including conspiracy to commit mail and wire fraud, mail fraud, wire fraud, aggravated identity theft, and money laundering.
The defendants each entered guilty pleas to charges of conspiracy, mail and wire fraud, and aggravated identity theft. Nash and Berts also entered guilty pleas to money laundering. Approximately $100,000 seized during the investigation was also ordered forfeited to the United States.
U.S. District Judge Donald C. Nugent sentenced Davis to 74 months in prison, Berts to 61 months in prison and Buchannan to 54 months in prison earlier this year.
The defendants were also ordered to pay restitution in the amount of $361,341 to the six state unemployment offices affected.
The defendants executed a “fictitious employer” scheme from about March 2012 to January 2013. They submitted false paperwork to various States’ unemployment-insurance offices where the defendants registered employers that did not actually exist and reported non-existent earnings for fictitious employees. The defendants then submitted false claims for unemployment-insurance benefits of the purported employees, according to court documents.
The defendants used actual individuals’ personal identifying information that the defendants had obtained fraudulently through various misrepresentations including distribution of flyers in urban areas purporting to offer assistance vouchers for food, housing, furniture and clothing. When the individuals called a telephone number listed on the flyers, they were asked to provide personal identifying information, which the defendants later used to file fraudulent claims for unemployment insurance benefits totaling $361,341, 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, the United States Secret Service, the United States Postal Inspector, and the Social Security Administration’s Office of Inspector General. Cleveland Heights Police Department also assisted the investigation.
Elyria Man Sentenced to 20 Years in Prison for Selling Heroin and Fatal FentanylRead the Press Release
An Elyria man was sentenced to 20 years in prison for distributing heroin and fentanyl, including fentanyl that caused the death of an Elyria resident last year, law enforcement officials said.
The sentence announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, Ohio Attorney General Mike DeWine and Elyria Police Chief Duane Whitely.
Siarres R. Noble, age 29, pleaded guilty earlier this year to four counts of distribution of fentanyl, two counts of distribution of heroin and one count of possession with intent to distribute fentanyl.
Noble admitted selling heroin and fentanyl at various times in March and November 2013, including fentanyl that he sold on November 8, 2013, which resulted in the death of an Elyria resident one day later.
“The drugs sold by this defendant killed a woman,” Dettelbach said. “Heroin and fentanyl use leads to death, destroys lives and damages families. This should send a clear message to drug dealers who are doing nothing more than selling poison, that we in law enforcement will work death and overdose cases back from the victims, identify who supplied them the drugs and hold them accountable for their actions.”
“Siarres Noble did not just sell heroin – he sold poison and a woman is dead because of his actions,” Anthony said. “Today’s sentence demonstrates the seriousness of these cases and the strength of our commitment to working them with our local partners.”
“There will be consequences for those who continue to feed addiction in this state, and as today’s sentence makes clear, dealers will be held accountable for deaths caused by their drug sales,” said Attorney General DeWine. “Law enforcement will continue to collaborate on the state, federal, and local level to hold drug dealers and those who assist them responsible.”
Elyria Police Chief Duane Whitely said: “There is a serious drug problem in this country and it is important that law enforcement at every level take the steps necessary to combat the sales of illegal drugs. Sadly, in this case, the sale of drugs led to someone’s death. The weapon used may not have been a gun, but it is just as deadly.
“I want to thank everyone involved in this case for the effort they put into it. Starting with the response from Elyria Police Investigative Unit for responding so quickly to the spike in overdoses that led to the arrest of Siarres Noble for selling the drugs that led to the death. I appreciate the great working relationship with have with the FBI and the U.S. Attorney’s office. It is the strong working relationship between all of these agencies that led to the federal conviction of Siarres Noble,” Whitely said.
This case was investigated by the Elyria Police Department and the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Robert F. Corts and Vasile C. Katsaros and Special Assistant United States Attorney Margaret Tomaro of the Ohio Attorney General’s Office.
Warren Man Sentenced to 10 Years in Prison for $15 Million Ponzi SchemeRead the Press Release
A Warren man was sentenced to 10 years in prison for his role in operating a $15 million Ponzi scheme, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland Office.
Keelan Harris, 38, was convicted earlier this year on charges of conspiracy, wire fraud, and money laundering. U.S. District Judge Christopher A. Boyko also ordered Harris to pay $15,596,345 in restitution to over 300 victims of the investment fraud scheme conducted by Harris, his brother Kevin Harris, and Karen Starr, who is a federal fugitive.
The sentence follows Harris’s pleas of guilty to conspiracy to commit wire fraud, seven counts of wire fraud and four counts of money laundering. These crimes arose out of Harris’s role in operating a Ponzi-style investment fraud from 2006 through on or about November 23, 2009, under the business names of Complete Developments LLC (CDL) and later, Investment International Inc. (I3). Offices for these businesses were maintained in Warren, according to court documents.
Kevin Harris is currently serving an 87-month term of imprisonment following his earlier conviction for this same scheme. He and Karen Starr recruited investors, while Keelan Harris opened and managed the business bank accounts. Investors in CDL expected profits from foreign currency exchange trading, and I3 was to generate profits from commercial real estate, high-yield investments, start-up companies, and inventions, according to court documents.
Investors were promised returns of 7 to 12 percent per month, over short-term periods, and were also assured that 80 percent of each investment would be held in secure accounts, and returned at the end of the contracted periods, according to court documents.
Kevin Harris and Karen Starr conducted limited foreign exchange currency trading, and lost money. Thereafter, CDL and I3 were operated as a Ponzi scheme, with Keelan Harris sending purported interest payments to early investors from funds obtained not from profits, but from later investor victims. Over $20 million was raised from over 400 investor victims, and ultimately approximately $15.6 million was lost, according to court documents.
More than $1.9 million was withdrawn from the CDL and I3 accounts in cash by Kevin and Keelan Harris. Approximately $400,000 was used by Kevin and Keelan Harris for personal expenditures, at stores, restaurants, for mortgage payments, car leases, and cell phone bills. Approximately $306,000 was diverted to low-value rental properties in the Warren area, and $308,000 was transferred to Starr in Canada. Approximately $760,000 was diverted to UCAN, another shell company for CDL, and $3.5 million was allegedly invested in a business in the United Arab Emirates. Additional investor funds were used for salaries and commissions, travel expenses, diversions to other investments by the Harrises, and payments to friends and family members, according to court documents.
This case was investigated by the Youngstown Resident Agency of the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Lauren Bell, James V. Moroney, and David Toepfer.Lorain Man Sentenced to Four Years in Prison for Identity Theft and Tax FraudRead the Press Release
A Lorain man was sentenced to four years in prison for identity theft and tax schemes in which he claimed fraudulent tax refunds of more than $121, 000, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Brent R. Willis was previously found guilty of one count of wire fraud and one count of aggravated identity theft.
Willis fraudulently obtained the identities of 57 people, without their knowledge or permission, from various sources, between January and April 2013. He then purchased approximately 57 prepaid debit cards in their names at stores in and around Lorain, according to court documents.
Willis prepared 57 false personnel income tax returns in the names of the identity theft victims, claiming false refunds in the total amount of $121,061.
“Identity theft is a contemptible modern-day scourge,” Enstrom said. “Law enforcement officers respond to it with every legal resource available. Let this sentence serve as a warning to those who are considering similar conduct.”
This case was prosecuted by Special Assistant U.S. Attorney John M. Siegel and Assistant U.S. Attorney Lauren A. Bell.
Six People Indicted for Conspiracy that Brought Heroin from Georgia to YoungstownRead the Press Release
A 51-count indictment charging six individuals with drug trafficking crimes was unsealed this week, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Joseph P. Reagan, Special Agent in Charge of the Drug Enforcement Administration's Detroit office..
Indicted are: Vincent D. Moorer, 31, of Lithonia, Ga.; Melvin Johnson, 30, of Youngstown; Keyonia Moorer, of Akron; John Angelo Smith, 34, of Youngstown; Charity Cousin, of Warren, and Jabbar Spires, 37, of Youngstown.
They are accused of knowingly conspiring to possess with the intent to distribute and to distribute heroin between 2013 and November 2014.
Vincent Moorer supplied heroin to Johnson for distribution in the Youngstown area. Johnson then supplied heroin to Spires and Smith distribution in Youngstown, according to the indictment
Cousin helped Vincent Moorer transport heroin from Georgia to Ohio, according to the indictment.
Vincent Moorer and Johnson also possessed firearms to protect themselves and their drug proceeds. On September 29, 2014, Vincent Mooerer possessed a firearm in furtherance of a drug trafficking crime, according to the indictment.
The indictment further alleges that on or about November 4, 2014, Moorer, possessed a Glock, model 27, .40 caliber pistol, and 15 rounds of ammunition, after having been previously convicted of felonious assault, in the Mahoning County, Ohio, Court of Common Pleas.
The indictment further alleges that on or about November 4, 2014, Johnson possessed a Smith & Wesson, model SW40VE, .40 caliber pistol; a Glock, model 27, .40 caliber pistol; and 29 rounds of ammunition, after having been previously convicted of being a felon in possession of a firearm, in the U.S. District Court, Northern District of Ohio, and felonious assault, in the Mahoning County, Ohio, Court of Common Pleas.
Moorer, Cousin, Johnson and Keyonia Moorer also conspired and intentionally conducted a series of financial transactions, which transactions involved money from drug proceeds, knowing that the transactions were designed to conceal the nature, location, source, ownership or control of the drug trafficking proceeds, according to the indictment.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Ravenna Man Charged with Making False Statement in Firearm PurchaseRead the Press Release
A federal grand jury returned a one-count indictment charging Jeremy P. Barnette, age 28, of Ravenna, Ohio, with making a false statement to a federally licensed firearms dealer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on or about March 27, 2014, Barnette, in connection with the acquisition of the following firearms: a Norinco, Model 84S-1, 5.56x45 rifle; a Ruger, Model 03800, 45 ACP pistol; and a Glock, Model 19, 9mm pistol, from Ohio Trading, 8855 State Street, NE, Louisville, Ohio, stated on the Firearm Transaction Report that he was purchasing the firearms for himself, when he was, in fact, purchasing the firearms for another individual who was a convicted felon.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mansfield Man Charged with Attempted Bank RobberyRead the Press Release
A federal grand jury returned a two-count indictment charging Joseph A. Smith, Jr., age 25, of Mansfield, with attempted armed bank robbery and brandishing a weapon during and in relation to a crime of violence, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on November 12, 2014, Smith Jr. attempted to rob the Directions Credit Union located at 460 South Diamond Street, Mansfield, Ohio, and brandished a firearm.
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 Mansfield Police Department and 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.
East Liverpool Pair Face Crack Cocaine ChargesRead the Press Release
A federal grand jury returned a one-count indictment charging John N. Lockett III, age 38, and Kaylee Marie Lockett, age 25, both of East Liverpool, Ohio, with conspiracy to possess with intent to distribute and distribution of at least 280 grams of cocaine base, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that beginning at least as early as November 2013 and continuing through December 2013, John N. Lockett III and Kaylee Marie Locket conspired to possess and distribute cocaine base.
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 Drug Enforcement Administration. 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.
More than 50 People Indicted in Joint Federal-State Operation Targeting Heroin in YoungstownRead the Press Release
A federal grand jury indicted 16 people for their roles in a drug trafficking conspiracy that brought heroin to Youngstown, law enforcement officials said.
An additional 37 people were charged in state court for violations related to the drug trafficking
The indictments were announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office, Joseph P. Reagan, Special Agent in Charge of the Drug Enforcement Administration's Detroit Office, Youngstown Police Chief Robin Lees, Mahoning County Sheriff Jerry Greene and Mahoning County Prosecutor Paul J. Gains.
“This group brought heroin into Youngstown and used firearms to do it,” Dettelbach said. “The FBI and Mahoning Valley Law Enforcement Task Force did a tremendous job in disrupting this drug pipeline.”
“Fifty-three individuals were taken off the streets today as a result of an in-depth, almost two-year joint investigation,” Anthony said. “These collaborative efforts demonstrate that drugs and violence will not be tolerated by law enforcement.”
Sheriff Greene and Chief Lees said in a joint statement: “Today's roundup of suspects is a result of a lengthy investigation and is an excellent example of the cooperation and collaboration between local and federal agencies in the effort to stem the tide of the heroin epidemic.”
Named in the 119-count federal indictment are: Jean Carlos Martinez, 31, of Campbell; Alberto Delgado, 28, of Youngstown; Chael Soto, 28, of Youngstown; Steven M. Filimon, 28, of Youngstown; Michael L. Schmidt, 35, of New Castle, Penn.; Osvaldo Rivera, age and hometown unknown; Carlos Cruz, 39, of Youngstown; Alexander Torres, 43, of Youngstown; Florentino Torres, 45, of Youngstown; Edgardo Esteras, 23, of Campbell; Juan F. Ortiz, age unknown, of Bayamon, P.R.; Felix Calderon, 25, of San Juan, P.R.; Rafael J. Medina-Vazquez, 35, of Youngstown; Amanda J. Leskey, 25, of Youngstown; Yolanda R. Rivera, 55, of Youngstown, and Jennifer L. Hake, 28, of Youngstown.
According to the indictment, all 16 people knowingly conspired to possess with the intent to distribute and to distribute heroin between January 2012 and November 30, 2014. Martinez supplied heroin to Delgado, Soto, Cruz, Alexander Torres, Florentino Torres, Estaras, Ortiz, and Rivera for distribution in the Youngstown area. Delgado supplied heroin to Schmidt for distribution in the New Castle, Pennsylvania, area and to Filimon and Hake for distribution in the Youngstown area, according to the indictment.
Delgado and Filimon possessed firearms to protect themselves and their drug proceeds. Cellular telephones, code words and phrases were used by the co-conspirators to facilitate their drug trafficking activities, according to the indictment.
In addition, multiple defendants are charged with distributing heroin in the Youngstown, Ohio area and possessing firearms to further their drug trafficking activities.
A related eight-count federal indictment was filed charging Filimon and Randy A. Triplett, 24, of Youngstown, with drug trafficking crimes. Filimon and Triplett conspired and possessed with the intent to distribute and distributed heroin and cocaine from May 2014 through November 30, 2014. Triplett supplied heroin and cocaine to Filimon for distribution in the Youngstown area, according to the indictment.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, the Mahoning Valley Law Enforcement Task Force and the Drug Enforcement Administration. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Woman Sentenced to Nearly Four Years in Prison for Tax CrimesRead the Press Release
A Cleveland woman was sentenced to nearly four years in prison for her role in a conspiracy that useed false identities, including those of people incarcerated, to file nearly $2 million worth of false tax claims, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of IRS Criminal Investigation, Cincinnati Field Office.
Gwendolyn N. White, 32, was also ordered to pay $342,365 in restitution. She was previosuly found guilty of one count of conspiracy to file false claims for income tax refunds with the IRS and on ten counts of filing false claims for refunds with the IRS.
“This defendant knowingly filed false income-tax returns in the names of people whose identities were stolen," Dettelbach said. "She tried to game the system to enrich herself.”
“The defendants who perpetrated this scheme systematically defrauded the government and the taxpaying public,” Enstromm said. “At the IRS, protecting taxpayer money is a matter we take very seriously. IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds.”
Kenneth White, 48, of Cleveland, is scheduled to be sentenced in February. He recruited people to use as claimants on some false tax returns, often with the promise of substantial refunds. White also obtained names, Social Security numbers and other personal identifiers of other people to use as claimants, including people in prison or jail. In some cases, this was done without the knowledge or consent of these other people, according to court records.
Gwendolyn White, at the direction of Kenneth White and for a fee, prepared and electronically filed 10 false income tax returns for the year 2008 in the name of the claimants. The total amount claimed in the returns was approximately $1,995,687, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the Internal Revenue Service – Criminal Investigations.