Northern District of Ohio
Press releases recorded for this federal judicial district.
Copley Man Charged for Role in $17 Million Investment FraudRead the Press Release
A Copley man was charged in federal court with defrauding about 70 investors out of approximately $17 million, law enforcement officials said.
Kenneth A. Grant, 66, was charged in a criminal information with one count of conspiracy to commit wire fraud and securities fraud and one count of money laundering.
The charges were announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office, and Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigations, Cincinnati Field Office.
“This case is another sad reminder that so-called investment gurus who make promises of big guaranteed returns should send up red flags,” Dettelbach said. “If something seems too good to be true, it usually is.”
“Ken Grant callously preyed on the desires of many to make wise investments for a secure future and duped them out of their life savings,” Anthony said. “Fraudsters such as Mr. Grant remain a top priority of the FBI.”
“Mr. Grant overpromised and then stole his investors’ funds. Investment fraud is not a victimless crime,” Enstrom said. “IRS Criminal Investigation is proud to bring our forensic accounting skills to this joint venture and help put a stop to this and other types of white collar crime.”
Grant and another individual owned and operated KGTA Petroleum, Ltd. Grant and others marketed KGTA as a company that earned profits from buying and selling crude oil and refined fuel products. Grant and others represented to investors that they had relationships with third-party purchasers and investor funds would be used to purchase fuel products at a discount and then resold at substantial profit, according to the information.
KGTA issued investment agreements and promissory notes which offered guaranteed monthly payments up to 5 percent per month or annual payments of approximately 60 percent per year, according to the information. Grant and others – including three registered representatives with PrimeSolutions Securities Inc. in the Akron area – never filed documentation about KGTA with the Securities and Exchange Commission, according to the information.
Grant and others obtained approximately $31 million from about 70 investors between 2010 and 2014 through false and fraudulent pretenses. Grant and others knew KGTA did not have agreements in place to sell oil and fuel, and that investors would not earn 5 percent per month on their investments, according to the information.
Grant and others used investor money for personal expenditures and luxury items including a Mercedes Benz, a boat and mortgage payments on high-end residential property. As a result of the conspiracy, Grant and others defrauded the investors out of approximately $17 million, according to the information.
This case is being prosecuted by Assistant U.S. Attorney Mark S. Bennett and Special Assistant U.S. Attorney Derek Kleinmann following an investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
A criminal information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Akron Man Sentenced to Nearly 22 Years in Prison for Child EnticementRead the Press Release
An Akron man was sentenced to nearly 22 years in prison for attempting to lure a 12-year-old into having sex with him, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
Nicholas B. Bowers, 31, was previously found guilty of one count each of enticement and receipt or distribution of visual depictions of minors engaged in sexually explicit conduct.
"This defendant sent obscene images of himself to a pre-teen girl in an effort to get her to meet with him," Dettelbach said. "We will continue to do all we can to protect our children from online predators."
“Attentive parents and swift law enforcement action has ensured that Mr. Bowers will not be trolling for minors on the Internet,” Anthony said. “This international collaborative law enforcement effort demonstrates that preying on our most precious commodity, our children, will not be tolerated.”
“The Springfield Township Police Department is confident that countless children have been saved from the predatory behavior exhibited by Mr. Bowers. This would have never been possible without the collaborative efforts of the FBI, the Toronto Police Department, and our Detective Bureau,” said Sgt. Eric East, Springfield Township Police Spokesperson.
From 2011 through 2014, Bowers 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. He also knowingly used a device connected to the Internet, to attempt to persuade, induce, entice and coerce a 12-year-old girl to engage in illegal sexual activity with him.
The investigation began in Toronto, Canada, on January 9, 2014. The parent of a minor female contacted the Toronto Police Service regarding sexually explicit chats and e-mail messages his daughter was receiving. It was determined that the individual resided near Akron. Chats and e-mail exchanges continued with the Toronto Police Service portraying themselves as the minor female. Toronto Police Service contacted the local authorities in Ohio, more specifically, the Springfield Township Police Department, which has jurisdiction over the area where Bowers resided.
The Springfield Township Police Department and the FBI continued the investigation, resulting in a local search warrant being obtained and executed on January 14, 2014, at the location where Bowers resided. During the execution of this search warrant, USB storage devices and CDs were among the items seized. These specific items were labeled with file names suggesting minor ages and the words “child porn pics.”
This case was prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Akron Office of the Federal Bureau of Investigation, the Springfield Township Police Department, and the Toronto Police Service.
Former Director of Anesthesiology School Sent to Prison for EmbezzlementRead the Press Release
The former director of the Cleveland Clinic Foundation Nursing Anesthesiology School was sentenced to two years in prison for embezzling $215,760 from the school, said U.S. Attorney Steven M. Dettelbach.
Paul Blakeley, 59, of Concord Township, was also ordered to pay restitution in the same amount to the Cleveland Clinic Foundation by U.S. District Judge Sara Lioi.
Blakely pleaded guilty to a one-count information in September.
From 2007 to 2013, Blakeley issued approximately 110 checks drawn on accounts maintained by the Cleveland Clinic Foundation Nursing Anesthesiology School without authorization, and made them payable to his spouse, and various merchants and credit card issuers. On approximately 50 of the unauthorized checks, Blakeley forged the payee’s endorsement before depositing them into his personal bank account, according to court documents.
The case was being prosecuted by Assistant United States Attorneys Robert W. Kern and Miranda Dugi following an investigation by the Cleveland Clinic Protective Operations and the United States Secret Service.
Justice Department and City of Cleveland Agree to Reform Division of Police after Finding a Pattern or Practice of Excessive ForceRead the Press Release
Attorney General Eric Holder announced today that the Justice Department’s civil rights investigation into the use of force by the Cleveland Division of Police has found a pattern or practice of unreasonable and unnecessary use of force. To address these findings the Justice Department and the city of Cleveland have signed a statement of principles committing them to develop a court enforceable consent decree that will include a requirement for an independent monitor who will oversee and ensure necessary reforms.
“Accountability and legitimacy are essential for communities to trust their police departments, and for there to be genuine collaboration between police and the citizens they serve,” said Attorney General Eric Holder. “Although the issues in Cleveland are complex, and the problems longstanding, we have seen in city after city where we have been engaged that meaningful change is possible. There are real, practical and concrete measures that can be taken to ensure not only that police services are delivered in a constitutional manner, but that promote public safety, officer safety, confidence and collaboration, transparency, and legitimacy.”
The investigation, launched in March, 2013, assessed use of force practices of the Cleveland Division of Police following a number of high profile use of force incidents and requests from the community and local government to investigate the division. The investigation concluded that there is reasonable cause to believe that Cleveland police officers engage in a pattern or practice of unreasonable and in some cases unnecessary force in violation of the Fourth Amendment of the Constitution. That pattern or practice includes:
- The unnecessary and excessive use of deadly force, including shootings and head strikes with impact weapons;
- The unnecessary, excessive or retaliatory use of less lethal force including Tasers, chemical spray and fists;
- Excessive force against persons who are mentally ill or in crisis, including in cases where the officers were called exclusively for a welfare check; and
- The employment of poor and dangerous tactics that place officers in situations where avoidable force becomes inevitable.
After determining that a pattern or practice of unconstitutional conduct exists, the investigation assessed the causes for the pattern and developed recommended remedial action. The investigation concluded that Cleveland officers are not provided with adequate training, policy guidance, support, and supervision. Additionally, systems of review that would identify problems and correct institutional weaknesses and provide individual accountability are seriously deficient. The investigation found that division fails to:
- Adequately review and investigate officers’ uses of force;
- Fully and objectively investigate all allegations of misconduct;
- Identify and respond to patterns of at-risk behavior;
- Provide its officers with the support, training, supervision, and equipment needed to allow them to do their jobs safely and effectively;
- Adopt and enforce appropriate policies; and
- Implement effective community policing strategies.
The investigation also found that this pattern of excessive force has eroded public confidence in the police. The trust between the Cleveland Division of Police and many of the communities it serves is broken. As a result, public safety suffers and the job of delivering police services is more difficult and more dangerous. Throughout the investigation, the Department of Justice provided its observations and concerns to the city, and in response, the division has begun to implement a number of remedial measures, however much more work is needed. This afternoon Attorney General Eric Holder, Acting Assistant Attorney General Vanita Gupta and U.S. Attorney Steven Dettelbach will host a joint meeting with community leaders, law enforcement officials and elected officials to discuss how to improve their working relationship and address the problems and challenges identified by the Department of Justice.
“We look forward to working together with the city of Cleveland, members of the Cleveland community and Cleveland police officers to address the deficiencies that have led to this pattern of unnecessary and excessive force,” said Acting Assistant Attorney General Gupta. “Together, we can build confidence in the division that will ensure compliance with the Constitution, improve public safety and make the job of delivering police services safer and more effective.”
“Our independent investigation, conducted at the request of the Mayor and others, revealed troubling patterns of the use of force in the Cleveland Division of Police,” said U.S. Attorney Dettelbach. “We applaud the division and the city for beginning to implement necessary reforms and are pleased that the city has entered into a statement of principles agreeing to negotiate a consent decree with outside monitoring that will guide the development of a sustainable blueprint for reform. It will take a joint effort by all stakeholders to ensure that this critical initiative is a success.”
The investigation was conducted jointly by the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for the Northern District of Ohio. The investigation involved an in-depth review of thousands of pages of documents, including written policies and procedures, training materials, and internal reports, data, video footage and investigative files. Department of Justice attorneys and investigators also conducted interviews with officers, supervisors and command staff, and city officials; and spoke with hundreds of community members and local advocates. This investigation was separate from any criminal investigation of any specific incident of alleged misconduct.
Individuals who wish to have input into developing the reforms or who have information relevant to the Justice Department's investigation into the use of force by the Cleveland Division of Police are encouraged to contact us by email at community.cleveland @usdoj.gov or by calling our toll free number, (202) 307-6479.
Read a copy of the Executive Summary here
Leer una copia del resumen ejecutivo aquí
Read a copy of the Findings Letter here
Read a copy of the Statement of Principles here
Lea una copia de la Declaración de Principios aquí
Former Head of Anti-Poverty Agency Sentenced to Prison for Accepting BribesRead the Press Release
The former head of a Cleveland-area anti-poverty agency was sentence to 30 months in prison for accepting more than $23,000 in cash, home renovations and other things of value in exchange for steering work to specific contractors, said 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, and Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region.
Jacqueline K. Middleton, 69, of Shaker Heights, pleaded guilty earlier this year to two counts of honest services fraud, one count of bribery in federally funded programs and one count of Hobbs Act Conspiracy.
“Middleton violated the trust of taxpayers and the people she had pledged to serve,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“Middleton padded her pocket with monies for federally funded contracts she awarded,” Anthony said. “Law enforcement will continue to root out individuals illegally capitalizing on their trusted position. ”
“Ms. Middleton held a position of trust and was expected to be a good steward in her utilization of taxpayer funds. She chose otherwise and was held accountable for her actions” Pugh said. “The OIG will continue to investigate allegations involving the misuse or misappropriation taxpayer funds in concert with our law enforcement and prosecutorial partners to ensure that those who breech the public’s trust are held accountable.”
Middleton served as president and chief executive officer of the Council of Economic Opportunities of Greater Cleveland. The CEOGC was organized with the purpose of serving low-income people of Cuyahoga County and Greater Cleveland. The CEOGC administered several federal, state and local programs designed to address the needs of low-income individuals, including Head Start, the Community Services Block Grant program and the Home Energy Assistance program.
From 2008 through around August 7, 2012, Middleton used her official position to enrich herself by soliciting and accepting gifts, payments and other things of value from contractors who did business with CEOGC. These gifts and payments were made in exchange for favorable action from Middleton for the payors and their companies, according to the information.
Middleton solicited and accepted gifts, payments and other things of value totaling more than $12,017 from a person identified as Contractor No. 1 and totaling approximately $11,200 from a person identified as Contractor No. 2. The things of value included kickbacks from CEOGC payments, home renovation work and payments to vendors for related supplies on her behalf, according to the information.
Middleton provided official favorable action Company No. 1 and Contractor No. 2 as requested and as opportunities arose. That included authorizing CEOGC contracts which retained Contractor No. 2 for consulting services and which retained Company No. 1 for work including parking lot renovations, classroom remodeling and flooring remodeling at various sites and offices administered by CEOGC, according to the information.
The case is being prosecuted by Assistant U.S. Attorney Michael L. Collyer following an investigation by the Federal Bureau of Investigation and the Department of Health and Human Services—Office of Inspector General.
Cleveland Man Indicted for Identity Theft and Credit Card FraudRead the Press Release
A Cleveland man was indicted today for operating an identity theft and credit card fraud scheme in which he defrauded 10 companies out of nearly $270,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Paul R. Tomko, 41, was indicted on 10 counts of bank fraud, nine counts of access device or credit card fraud, one count of aggravated identity theft, and one count of wire fraud. Tomko is accused of defrauding nine financial institutions out of $256,797 and one company out of $13,247 in 2013. He did this through the unauthorized use of another’s personal identification to obtain credit cards and lines of credit in that person’s name, according to the indictment.
Tomko approached someone identified as J.S. and sought financial assistance in paying for a lawn mower for the maintenance of property Tomko had in the Cinema Park Development, as required by the city of Warrensville Heights. Tomko obtained J.S.’s personal identification information in the process. Tomko then obtained nine credit cards and opened lines of credit in the name of J.S., and in the name of J.S.’s company, JMS Services Corporation, using the personal information of J.S. without J.S.’s authorization or knowledge, according to the indictment.
Tomko, without the authorization or knowledge of J.S., used the credit cards and lines of credit in the name of J.S. and JMS Services Corporation for Defendant’s own personal use, thereby running up a balance due and owing on each of these credit cards and lines of credit. Once Tomko ran up a balance on these credit cards, he then engaged in a scheme in which he made a payment on each of these credit cards with a worthless check or using an intentionally incorrect account number, thereby keeping the line of credit in place, or even increasing the line of credit with the appearance of a payment. Once Tomko’s check or payment was dishonored or returned, Tomko ceased to make any payments, leaving the financial institutions with a loss.
As a result of this scheme, the indictment charges that Tomko caused losses to the below listed financial institutions in the following approximate amounts:
Financial Institution
Amount
Key Bank
$63,629.72
$42,791.35
FNBO
$9,415.00
AmEx
$16,358.16
US Bank
$33,522.02
Barclays
$28,286.74
GE Capital
$10,000.00
Fifth Third
$23,894.84
Capital One
$28,899.67
Total
$256,797.50
Some of the unauthorized charges made by Tomko included payments by Tomko for the Cinema Park development property taxes ($33,882 and $26,252); the payment to Tomko’s defense attorneys to represent him in a criminal case ($8,700, $6,000 and $5,500); the payment of $10,000 to a physician for a medical procedure for Tomko; and numerous payments to Tomko as Dr. Paul Tomko. In the wire fraud charge, Tomko also used email communication to set up an unauthorized account, through JMS Services, to defraud Balboa Capital, an equipment leasing company in California, out of approximate $13,247, according to the indictment.
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. If convicted, the defendant’s sentence will be determined by the Court after review of factors
unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.The case is being prosecuted by Assistant U.S. Attorneys Christian H. Stickan and Christos N. Georgalis following investigation by the FBI, Cleveland Office.
Solon Man Sentenced to Nearly 11 Years in Prison for Defrauding Credit UnionRead the Press Release
The former chief executive officer of Taupa Lithuanian Credit Union sentenced to nearly 11 years in prison for leading a conspiracy that defrauded the credit union out of $15 million, 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.
Alex Spirikaitis, 52, pleaded guilty earlier this year to one count of conspiracy to commit bank fraud. Spirikaitis personally embezzled about $4.2 million from Taupa between 2001 and 2013 and used the money to build a home in Solon, obtain a luxury suite at Cleveland Browns games, and buy multiple vehicles and firearms, according to court documents.
U.S. District Judge James Gwin sentenced Spirikaitis to 130 months in prison and ordered him to pay $15 million in restitution.
“This defendant is now paying the price for stealing millions of dollars from credit union members who entrusted him,” Dettelbach said. “He lived a life of luxury based on stolen money.”
“Alex Spirikaitis spent more than a decade engaged in corrupt actions before fleeing from the home he purchased with credit union funds,” Anthony said. “The FBI is proud that this fraudster was brought to justice.”
The National Credit Union Administration and the Ohio Department of Commerce took possession of Taupa last year and placed it into receivership due to its insolvency. Taupa had about 1,150 members and assets of approximately $24 million, according to court records.
Spirikaitis used the money he embezzled buy multiple firearms, which he stored at the credit union, and a suite for Cleveland Browns games. He used Taupa’s money to purchase nine vehicles for himself and his family between 2007 and 2012, according to court records.
He also used Taupa funds to write 26 checks between November 2011 and November 2012, totaling $1,655,000, to build a home on Liberty Road in Solon, according to court records.
He also engaged in a conspiracy with several other people, and their actions led to a loss of approximately $15 million to the credit union and NCUA. Spirikaitis allowed friends and associates to overdraw their accounts by more than $1 million. He also approved loans without seeking any relevant financial information, according to court documents.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton and Special Assistant United States Attorney Derek Kleinmann. The case was investigated by the Federal Bureau of Investigation.
Copley Man Sentenced to Nearly Five Years in Prison for Investment FraudRead the Press Release
A Copley man was sentenced to nearly five years in prison for operating a fraudulent investment scheme which caused investors to lose nearly $1.8 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Anthony Davian, 35, pleaded guilty earlier this year to one count of securities fraud, two counts of mail fraud, four counts of wire fraud, and seven counts of money laundering. He was sentenced to 57 months in prison and ordered to pay $1,787,679 in restitution, as well as forfeiting property.
“This defendant deceived clients to line his own pockets,” Dettelbach said. “We will continue to aggressively pursue cases in which investors are cheated out of their savings.”
Davian used his hedge fund, Davian Capital Advisers, LLC, to promote and sell securities to at least 20 investors across several states between Between 2008 and 2013, resulting in $1.8 million in overall investor loss, according to court documents.
Davian purported to sell securities in the form of shares in the various funds he created and controlled, including Davian Capital, Rubber City Gravity, Rubber City Pure Alpha, Cleveland Precious Metals Fund, and others. Instead, he used the investors’ monies to redeem earlier investors, enrich himself and pay off personal expenses, such as the purchase of an Audi Q7 Prestige, according to court documents.
The investigation revealed that Davian cajoled investors’ into giving him hundreds of thousands of dollars by claiming to manage hundreds of millions of dollars to make himself appear more sophisticated than he really was and by falsifying client account statements, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Christos N. Georgalis, Matthew Cronin and James Morford following an investigation by agents of the United States Secret Service, the Internal Revenue Service and the United States Postal Service.
U.S. Attorney's Office and Partners Report Progress One Year after Heroin SummitRead the Press Release
One year after a summit focused on heroin and opioid addiction, many of the participants came together to provide an update to the community on activity and progress that has been made since the summit.
The Cleveland Clinic and United States Attorney’s Office, together with many partners, hosted “Heroin: A Crisis Facing Our Entire Community.” The summit resulted in the formation of a working group and a community action that that looked at heroin and opioid abuse from the perspectives of the medical, treatment, prevention and law enforcement communities.
Among the developments since the Heroin and Opioid Summit:
- Drop boxes for prescription pills now exist in most communities in Cuyahoga County, resulting in the collection of more than 13,000 pounds of pills.
- House Bill 170 was signed into law, following testimony by some of the participants of the heroin summit. Project DAWN (Deaths Avoided With Naloxone) has nearly 1,000 registrants and documented nearly 100 reversals.
- Cuyahoga County and the Cuyahoga County Medical Examiner’s Office provided money for a variety of regional cooperative law enforcement groups to purchase an initial supply of Naloxone for officer use.
- Cleveland Police, the Cuyahoga County Sheriff and the Cuyahoga County Prosecutor developed investigative protocols so fatal heroin overdoses are now fully investigated and treated as crime scenes.
- Three heroin cases have been prosecuted in federal court under a “death-specification” sentencing enhancement in cases that resulted in death. Sentences have ranged from 12 to 20 years in prison.
- The Cuyahoga County Prosecutor has filed eight heroin-related manslaughter indictments since the summit.
- Three physicians have been indicted in federal court of illegally dispensing tens of thousands of doses of prescription painkillers.
- Members of the working group have participated in nearly 100 community, school or public events in the past year to raise awareness about the dangers posed by heroin and opioids, as well as extensive publicity campaigns undertaken by the ADAMHS Board and Cuyahoga County Prosecutor.
- A second judge will be added to handle Cuyahoga County’s Drug Court docket.
Despite these efforts, heroin overdose remains a leading cause of death in Cuyahoga County, and deaths continue are expected to hover around 200 this year. That figure represents a nearly 400 percent increase from a decade ago. Police and prosecutors report a huge influx in both the availability of heroin and the number of heroin-related crimes.
There are also significant challenges from this crisis that are facing the medical profession. Doctors are grappling with how to effectively treat pain will responsibly prescribing opioids. Treatment professionals struggle with how to provide resources and help to people struggling with addiction, while parents, educators and others search for effective strategies to keep people from trying heroin in the first place.
“The heroin epidemic in Northern Ohio is a law enforcement problem, a treatment problem, a medical problem, a public-health problem and a societal problem,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “Only by working together for comprehensive solutions will we begin to turn the tide. This group has continued to work together to push for substantive changes on everything from the availability of Naloxone to how heroin fatalities are investigated. There is still work to do, and we will continue to do it.”
Cuyahoga County Executive Edward FitzGerald said: “Over the last year, we have worked collaboratively to bring law enforcement officials, public health experts, and other stakeholders from across Northeast Ohio together to implement a comprehensive strategy that will end the epidemic of heroin abuse in our region. I am proud of the work we’ve accomplished so far – especially the cutting-edge practices and procedures established by the Cuyahoga County Medical Examiner’s Office, led by Dr. Tom Gilson. As this critical public health effort moves forward in the weeks and months to come, I am confident that we have laid the groundwork that will help finally reverse the trend of opiate addiction in our region.”
“Solving the heroin epidemic in our community requires collaboration among doctors, treatment professionals, legislators, educators and law enforcement agencies,” says Jason Jerry, M.D., a Cleveland Clinic physician in the Alcohol and Drug Recovery Center. “It’s our role as healthcare professionals to educate our counterparts about the most effective, evidence-based treatment options available for those suffering from addiction, we are moving in the right direction, but still have important work ahead of us.”
The summit and subsequent working group includes representatives from the United States Attorney’s Office, the Cleveland Clinic, the Cuyahoga County Executive, the Ohio Attorney General, MetroHealth Medical Center, University Hospitals, Cuyahoga County Common Pleas Court, the Cleveland Division of Police, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Ohio State Medical Board, the Ohio State Pharmacy Board, Cuyahoga County Board of Health, the Cuyahoga County Medical Examiner, the Cuyahoga County Prosecutor, the ADAMHS Board., the Westshore Enforcement Bureau and others.
Sylvania Man Sentenced to Nearly Five Years in Prison for Criminal Schemes Centered Around IHOP RestaurantsRead the Press Release
Mazen Khdeer was sentenced to nearly five years in prison for his role in a series of criminal schemes that money laundering, identity theft, alien harboring and arson, centered around seven IHOP restaurants in northwest Ohio and Indiana, law enforcement officials announced today.
Khdeer, 55, of Sylvania, was also ordered to pay $1.3 million in restitution and to forfeit two properties. He previously pleaded guilty to 13 counts, including money laundering, malicious use of fire, conspiracy to harbor aliens, identity theft, conspiracy to commit health care fraud and filing false claims..
Khdeer was the last of 18 people to be sentenced for their roles in a series of criminal schemes that resulted in losses of more than $3 million.
“These defendants turned pancakes houses into crime dens,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “These defendants engaged in a range of crimes ranging from harboring undocumented workers to identity theft to money laundering to insurance fraud.”
"Today is the final sentencing of 18 individuals who utilized a chain of IHOP restaurants as their platform to engage in organized crime," said Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office. "This wraps up years of tenacious investigative and prosecutorial work by all agencies involved."
Other sentences included Tarek “Terry” Elkafrawi, whe was sentenced to eight years in prison, Tarek Eid Omar, who was sentenced to more than four years in prison, and Jose Leon-Gonzalez, who was sentenced to more than three years in prison
Elkafrawi owned seven IHOP restaurants in Evansville, Indiana and Holland, Toledo (two locations), Findlay, Perrysburg and Lima, Ohio. He and others used their control of the restaurants to execute various criminal activities to fraudulently manipulate sales figures, salaries and payrolls to evade taxes, avoid paying royalties and illegally divert money from the IHOP franchises to themselves, according to court documents.
Elkafrawi employed about 200 illegal immigrants to work at his restaurants, most of whom used fraudulent or stolen identities while working. He and others employed several people to arrange for the arrival of the workers. If the worker had false paperwork or documentation, the manager would accept it without verification; if they did not have documentation, Elkafrawi and others would arrange for Carlos Gonzales and others to obtain fraudulent documentation for the workers, according to court documents.
Elkafrawi also arranged for managers to cash payroll checks for the illegal workers. Elkafrawi and others assigned second identities to workers to avoid paying overtime wages and reduce the restaurants’ payments to the Ohio Bureau of Workers Compensation. They were also able to underpay the undocumented workers because they knew the workers would not complain or report them to law enforcement. Overall, Elkafrawi and others were able to generate $1.2 million in unreported income by manipulating wages and underreporting income of undocumented workers, according according to court documents.
In 2008, the Findlay IHOP burned as the result of arson. The fire was started by Gonzales at the direction of Elkafrawi and a Khdeer to facilitate an insurance fraud scheme. Elkafrawi claimed approximately $1.3 million in fraudulent insurance claims, based in part on inflated payroll claims, lost income and invoices, according to court documents.
Khdeer used two identities to split his salary from the restaurants between two paychecks, creating lower reportable income for both. Using those identities, he claimed approximately $140,000 in Medicaid payments and $35,000 in food stamps and welfare benefits from the state of Ohio. Khdeer and Elkafrawi created a false property company to which Khdeer paid “rent” to Elkafrawi to show a lower income. Elkafrawi and Khdeer sanctioned and encouraged employees to file fraudulent claims, according to court documents.
This case is being prosecuted by Assistant United States Attorneys Duncan T. Brown following an investigation by the Federal Bureau of Investigation, Immigration and Customs Enforcement – Homeland Security Investigations, Internal Revenue Service, the Ohio Bureau of Worker’s Compensation and Toledo Police.
Former Executive at North Canton Company Sentenced to more than Two Years in Prison for Violating Campaign Finance LawsRead the Press Release
The former chief financial officer at a North Canton company was sentenced to more than two years in prison for violating campaign finance laws and conspiring to obstruct justice, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Michael Giorgio, 63, of Cuyahoga Falls, was sentenced to 27 months in prison. He pleaded guilty earler this year to seven counts: one count of conspiracy to violate the campaign finance laws, two counts of substantive campaign finance violations, three counts of causing the campaigns to make false statements in their FEC reports, and one count of conspiracy to obstruct justice..
Giorgio admitted that while he worked at Suarez Corp., he and others funneled almost $200,000 in conduit contributions to U.S. House adn Senate campaigns in the 2012 election. Court documents detial 18 contributions, all made in March 2011, to a 2012 House campaign. It also details 20 contributions, all but one made in May 2011, to a 2012 Senate campaign.
Giorgio also admitted to obstructing justice. He did this by causing another executive at Suarez Corp. to create and distribute documents entitled “Advance on Profit Sharing” for all but one Suarez Corp. employee or contractor who has been reimbursed for campaign contributions. Those documents were intended to create the impression that the reimbursement payments that Suarez Corp. previously made to the conduit contributors were actually “advances” that all along were meant to be repaid to the company by the employees and contractors. They did this after newspaper reports detailed the suspicious contribution, according to court documents.
This case is the result of an investigation by the FBI-Canton Resident Agency. It is being prosecuted by Assistant United States Attorneys Carole S. Rendon and Rebecca Lutzko.
Ashland Man Sentenced to 15 Years in Prison for Child ExploitationRead the Press Release
Christopher D. Rarick, 35, of Ashland, was sentenced to more than 15 years in prison for exploiting children, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Rarick pleaded guilty earlier this year to two counts of child exploitation and one count of possession of child pornography. U.S. District Judge Benita Pearson sentenced him to 188 months in prison.
Rarick was stopped for a traffic violation by an Ashland police officer on Feb. 14, 2013. Rarick became agitated and noncompliant and was arrested. At one point during the encounter Rarick produced his cell phone and claimed to be recording the encounter with police. The cell phone was seized as evidence after the arrest, according to court documents.
Ashland police obtained a search warrant for the phone, seeking files related to the traffic stop. Upon searching the phone, police also found numerous pictures and videos of child pornography. Police obtained another search warrant and found images of juveniles engaged in various sex acts. Three of the videos were of what police described as an apparent rape by Rarick of a young girl who was passed out, according to court documents.
This case was prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the FBI and the Ashland Police Department.
Six People Charged with Bringing Crystal Meth to Cleveland from CaliforniaRead the Press Release
Six people were indicted in federal court for their roles in a conspiracy to bring crystal methamphetamine from California and sell it in Cleveland, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Named in the six-count indictment are: Chauncey D. Dennis, 35, Michael J. Coolidge, 51, and Ross Cipolla, 49, all of Cleveland; Aja S. Brown, 33, of Van Nuys, Calif.; Christian Joe Villasenor, 32, and Hazel Hamilton, 28, both of Los Angeles.
Dennis, Coolidge and Cipolla obtained the crystal meth from Brown, Villasenor and Hamilton in California, then redistributed the drug in Cleveland between August and October 2014, according to the indictment.
Dennis sent money orders to dealers in Los Angeles and Van Nuys, Calif., who in turn mailed packages containing crystal meth to Dennis at 10121 Unity Ave., Upper Unit, in Cleveland. On Sept. 15, Coolidge picked up the drugs from Dennis and delivered them to Cipolla at a storage facility at 6000 Clark Ave. in Cleveland, according to the information.
Count 1 charged all six for their roles in the conspiracy.
Count 2 charged Cipolla with possession of GHB with intent to distribute.
Counts 3 and 4 charged Dennis and Brown with using a communication facility to facilitate a felony, while Counts 5 and 6 charge them with conducting financial transactions involving proceeds from unlawful activity.
The case is being prosecuted by Special Assistant U.S. Attorney Margaret Tomaro, an Assistant Attorney General for the State of Ohio. The case was investigated by U.S. Postal Inspection Service.
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.
Ohio Man Charged with Making ThreatsRead the Press Release
A federal grand jury returned a two-count indictment charging Charles James Reighard, age 67, of Burghill, Ohio, with mailing threatening communications, and threatening to damage or destroy a building by means of an explosive, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Count 1 of the indictment charges that from on or about September 4, 2014, to on or about October 17, 2014, Reighard sent communications to his victim with the intent to extort money from him and which contained a threat to injure him and/or his family.
Count 2 of the indictment charges that on or about October 16, 2014, Reighard engaged in conduct with the intent to convey false or misleading information that the offices at 6630 Seville Drive, in Canfield, Ohio, would be damaged or destroyed by an explosive.
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 Justin Seabury Gould, following an investigation by the Federal Bureau of Investigations of Youngstown, and the Mahoning County Sheriff’s 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.
Man Charged for Armed Robbery of Cleveland Heights StoreRead the Press Release
A federal grand jury returned a two-count indictment charging Willie L. Monroe, 32, of Cleveland, with one count of interference with commerce by means of robbery and one count of using and carrying a firearm during and in relation to a crime of violence.
The indictment alleges that Monroe, and other unknown individuals, attempted to rob a Family Dollar store in Cleveland Heights, Ohio, on September 23, 2014. It further alleges that Monroe and the other robbers carried and brandished a firearm during the incident.
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 the sentence will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Cleveland Division, and the Cleveland Heights 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.
Brooklyn Woman Charged with Passing Counterfeit BillsRead the Press Release
A federal grand jury returned a one-count indictment charging Reneisha Ferguson, aka “Christine Purcell,” age 25, of Brooklyn, New York, with passing counterfeit notes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
On or about April 30, 2012, through December 9, 2012, Ferguson exchanged, transferred and delivered false, forged and counterfeited $100 Federal Reserve notes with the intent that the notes be accepted as genuine, 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 United States Secret Service and the Fairlawn 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.
Former CFO Charged with Stealing $1.2 Million, Spending Some of the Money on Women he Met OnlineRead the Press Release
The former chief financial officer of Alotech Ltd. was charged with defrauding his former employer out of more than $1.2 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
A criminal information was filed in federal court charging John H.C. Black, 56, of Cleveland Heights, with one count of wire fraud.
Black spent more than $450,000 of the stolen money buying cars and making purchases at Louis Vuitton, Sak’s Fifth Avenue, Victoria’s Secret, Neiman Marcus and other stores for women that Black met on the web site www.seekingarrangements.com, according to the information.
“According to these charges, this defendant defrauded his employer and betrayed the trust of all those who worked at Alotech,” Dettelbach said. “The fact that he blew hundreds of thousands of dollars on lingerie, purses and shopping trips to Chicago for women he met online only adds insult to injury.”
“Buying female companionship with Alotech’s bank account was not what John Black was hired to do,” Anthony said. “Black is being held accountable for the numerous financial schemes he utilized to defraud the company that paid his salary.”
Black was employed as the CFO at Alotech from July 1, 2009, through Aug. 31, 2012. Alotech is headquartered in Brooklyn, Ohio, and is engaged in the manufacture, research and development of cast parts used by the military, auto industry and aerospace industry, among other applications, according to the information.
He began to use Alotech’s business checking account for personal expenditures in early 2011. Black also encouraged Alotech’s chief executive officer to obtain two corporate credit cards – one in Black’s name and one in the CEO’s name – to be used in case of emergency. Black also obtained a debit card without authorization of Alotech of the company’s CEO, according to the information.
Black began issuing multiple corporate checks for his personal benefit around early 2011, and withdrawing cash from ATMs with the unauthorized debit card, according to the information.
Around October 2011, Black met multiple women through the website www.seekingarrangements.com. The website purported to match younger females, approximately 20-30 years old, with rich, older men. The men agreed to provide the women with cash and gifts in exchange for their companionship, according to the information.
Between October 2011 and August 2012, Black provided cash and gifts with money that he fraudulently obtained from Alotech. These include multiple personal vacations to Chicago and numerous purchases there. This also includes purchases at Hannoush Jewelry, Macy’s.com, Neiman Marcus, Louis Vuitton, Sak’s Fifth Avenue and Victoria’s Secret, according to the information.
He also purchased two automobiles for one of the women, including an Audi, according to the information.
This indictment is the result of an investigation by Federal Bureau of Investigation. The case is being prosecuted by Special Assistant U.S. Attorney Derek Kleinmann.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Concord Man Pleads Guilty to Defrauding Credit Union Out of $2.3 MillionRead the Press Release
A Concord Township man pleaded guilty today to defrauding Taupa Lithuanian Credit Union out of $2.3 million, law enforcement officials said.
John Struna, 52, is scheduled to be sentenced Feb. 25. He pleaded guilty to seven counts -- one count of conspiracy to commit bank fraud, one count of bank fraud, one count of making false statements and four counts of money laundering.
Struna will forfeit a restaurant he owns – the Sunny Street Café in Concord Township – as well as a condominium in Florida and a 2014 Mazda because they were purchased with proceeds of the fraud, according to court documents.
The guilty plea was announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, and Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service – Criminal Investigations.
The National Credit Union Administration and the Ohio Department of Commerce took possession of Taupa last year and placed it into receivership due to its insolvency. Taupa, based in Cleveland, had about 1,150 members and assets of approximately $24 million, according to court records.
Credit union CEO Alex Spirikaitis, former teller Michael Ruksenas and Vytas Apanavicius have previously been found guilty for their roles in conspiracies related to defrauding the credit union.
Struna maintained both personal and corporate accounts at Taupa dating back to 1995. He began a conspiracy with Spirikaitis in 2002 and continued through 2013, during which time Spirikaitis caused Taupa to make approximately 46 fraudulent transfers into Struna’s accounts, according to court documents.
In 2011, Struna requested and received $112,105 from Spirikaitis for the purchase of a condominium located in Ft. Myers, Florida. At no time did Struna submit any credit applications or loan documents, according to court documents.
The fraudulent transfers totaled approximately $2.3 million. From 2002 through 2013, Struna repaid only approximately $15,000 of the $2.3 million Spirikaitis transferred into his accounts, according to court documents.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton and Special Assistant United States Attorney Derek Kleinmann. The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.
Former Eaton Employee Indicted for Installing MalwareRead the Press Release
A federal indictment was unsealed today charging Arturas Samoilovas, age 35, of Stow, Ohio, with one count of transmitting and attempting to transmit computer codes, programs or commands, intending to cause damage to a protected computer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
“This defendant sought to disrupt a company’s operations through its computer system,” Dettelbach said. “Cyber security is a priority for our office, to protect both our national security and the companies and employers in our district.”
“Mr. Samoilovas, a former contractor at Eaton with considerable knowledge of the company's computer networks, must be held responsible for his criminal actions,” Anthony said. “If activated, his placement of malicious software, also known as ‘malware’, would have caused significant damage to Eaton Corporation's internal computer network.”
Samoilovas was employed at Eaton Corporation as a contract employee between November 2013 and May 21, 2014, where he worked as a financial analyst. Samoilovas applied for several other positions at Eaton prior to the expiration of his temporary employment contract, but was not selected, according to the indictment.
On or about May 21, 2014, Samoilovas accessed the Eaton Corporation computer system and inserted certain malicious computer codes, programs or instructions which would delete files or data from the Eaton Corporation computer system. The malicious code was discovered after Samoilovas contacted a former co-worker on May 23, 2014, and disclosed the existence of the malicious code, according to the indictment.
The case is being prosecuted by Assistant United States Attorney Robert W. Kern following an investigation by the Cleveland office of the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. 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.
Benjamin Suarez Sentenced to more than a Year in PrisonRead the Press Release
Benjamin Suarez was sentenced to 15 months in prison for obstruction of justice, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Suarez, 73, of Canton, was convicted in June of one count of obstruction of justice following a jury trial. Suarez was acquitted on seven counts related to campaign finance laws.
"The judge was correct that this defendant's criminal conduct struck at critical part of our democracy, our justice system," Dettelbach said "This sentence sends a simple message: no one is above the law."
"Benjamin Suarez has been held accountable for impeding the pursuit of justice," Anthony said. "It is imperative that law enforcement be able to fulfill their sworn duties when investigating any possible violation of the law."
Judge Patricia A. Gaughan also sentenced Suarez to two years of supervised release and fined him $15,000.
This case is the result of an investigation by the FBI-Canton Resident Agency. It is being prosecuted by Assistant United States Attorneys Carole S. Rendon, Rebecca Lutzko and Matthew Cronin.
Akron Doctor Charged for Illegally Distributing Prescription PainkillersRead the Press Release
A criminal information was filed charging an Akron physician with illegally distributing tens of thousands of doses of prescription painkillers, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Brian Heim, age 56, was charged with one count of conspiracy to distribute controlled substances and 20 counts of distribution of controlled substances.
“Our region is awash in opioids that have brought heartbreak and suffering to countless families,” Dettelbach said. “We will continue to work with the DEA to identify and prosecute physicians who illegally divert pills.”
Heim is registered with the State of Ohio Medical Board as a medical doctor specializing in family medicine, obstetrics and gynecology. From August 2011 through October 2012, Heim and others agreed to illegally distribute thousands of doses of prescription painkillers to customers from Heim’s office at 3562 Ridge Park Drive, Suite A, in Akron, according to the information.
Heim distributed and dispensed more than 30,000 tablets of Oxycodone, Oxycontin and Opana to various individuals for which there was not a legitimate medical purpose. He did this by one or more of the following manners: without adequate verification of the patient’s identity or medical complaint; without adequate and reliable patient medical history; without performance of a complete or adequate examination; without establishment of a true diagnosis; without the use of appropriate diagnostic or laboratory testing, and others, according to the information.
Heim and others did this by using pre-signed blank prescription forms upon which Heim’s staff would fill in the controlled substance and dosage to be prescribed, according to the information.
The case was prosecuted by Assistant U.S. Attorney Vasilie C. Katsaros following an investigation by the Drug Enforcement Administration.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.Eastlake Man Faces Child Pornography ChargesRead the Press Release
David M. Moyer, 69, of Eastlake, was charged with receiving and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
From on or about July 30, 1998, through on or about May 21, 2012, Moyer knowingly received by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On October 30, 2013, images of child pornography were also found on his DVD/CD’s, flash memory devices, computers, and external hard drives, according to the indictment.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the United States Postal Inspection Service in Cleveland
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Man Faces Heroin and Firearms ChargesRead the Press Release
A Cleveland man was indicted on federal drug and firearms charges, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Lionel D. Cannon, 50, was indicted on one count each of possession with intent to distribute heroin, being a felon in possession of a firearm and interstate travel for the purpose of facilitating an unlawful activity.
Cannon possessed more than 136 grams of heroin on Aug. 19. He also possessed a .380-caliber revolver and a .44-caliber revolver, despite previous cocaine convictions in state and federal court, according to the indictment.
Cannon also travelled between Ohio and California in August to engage in distribution of cocaine, according to the indictment.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, 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 U.S. Attorney Joseph M. Pinjuh and Special Assistant U.S. Attorney Margaret Tomaro of the Ohio Attorney General's Office.
The case was investigated by the Northern Ohio Law Enforcement Task Force. The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Ohio Bureau of Criminal Investigation, U.S. Coast Guard Investigative Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Westlake Police Department, and Shaker Heights Police Department. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives. HIDTA supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Man Faces Heroin and Firearms ChargesRead the Press Release
A two-count indictment was filed charging a Cleveland man with possesion of heroin with intent to distibute and being a felon in possession of a firearm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Dwight Bullard, 40, had more than 140 grams of heroin on Oct. 28, 2014. He also had a Glock 23 .40-caliber pistol and ammunition despite previous felony convictions in Cuyahoga County Common Pleas Court, according to the indictment.
Prosecutors are seeking to forfeit $24,329 in cash that was seized, according to the indictment.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, 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 Henry F. DeBaggis. The case was investigated by the Northern Ohio Law Enforcement Task Force. The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Ohio Bureau of Criminal Investigation, U.S. Coast Guard Investigative Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Westlake Police Department, and Shaker Heights Police Department. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives. HIDTA supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Bedford Man Charged for Armed Robbery of Garfield Heights BankRead the Press Release
A grand jury returned a two-count indictment charging Landon Darnell McFarland, Jr., 32, of Bedford, with one count of attempted bank robbery and one count of brandishing a firearm 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 McFarland robbed the Ohio Savings Bank, 6016 Turney Road, Garfield Heights, Ohio, a federally insured financial institution, on August 30, 2014.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to his 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 Matthew B. Kall, and was investigated by the Lorain County Sheriff’s Office and the Cleveland Resident Agency of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sylvania Man Indicted on Child Pornography ChargesRead the Press Release
A two-count indictment was unsealed charging Thomas W. Michaelis, age 69, of Sylvania, Ohio, with receipt/distribution of child pornography and possession/access intent to view child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Michaelis received and distributed the images between April and May. He possessed and accessed with intent to view one or more web sites which contained depictions of minors engaged in sexually explicit conduct between January and May, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agencies in this case are the United States Secret Service and the Sylvania Police Department. The case is being handled by Assistant United States Attorney Alissa M. Sterling
An indictment is only a charge and is not evidence of guilt. The Defendant is entitled to a fair trial in which it will be the government’s burden to prove his guilt beyond a reasonable doubt.
Brunswick Man Sentenced to Nine Years in Prison for Credit Union FraudRead the Press Release
A Brunswick man was sentenced to more than nine years in prison for illegally receiving more than $3 million from the St. Paul Croatian Federal Credit Union in exchange for cash payments to the credit union’s chief operating officer, law enforcement officials said.
Svetislav Vujovic, 42, was convicted by a jury earlier this year on all 14 counts – 10 counts of making false statements to a federal credit union, two counts of money laundering and one count each of financial institution fraud and giving gifts for procuring loans.
U.S. District Judge Christopher Boyko sentenced Vujovic to 109 months in prison and ordered him to pay restitution of $2.95 million.
St. Paul Croatian Federal Credit Union 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.
“The failure of the credit union was a loss that cannot be measured in dollars alone,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “This defendant went back and took from the credit union time after time.”
Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Field Office, said: “The St. Paul Federal Credit Union collapse resulted in one of the largest credit union failures ever investigated in U.S. history. This complex, large-scale investigation transcended international borders and will continue until all those involved are brought to justice.”
“Honest and law-abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money,” said Special Agent in Charge Kathy Enstrom, IRS Criminal Investigation, Cincinnati Field Office. “Let this sentence stand as a warning to those who victimize the public that whether you are the main perpetrator of a fraud, or assist in its facilitation, the law will hold all guilty parties accountable.”
Vujovic, aided and abetted by Anthony Raguz, the former Chief Operating Officer of Eastlake-based St. Paul Croatian Federal Credit Union, received numerous fraudulently obtained loans totaling approximately $3 million from the credit union between 2004 and 2008, according to court documents and trial testimony.
Vujovic obtained these loans by making false representations and promises, and he received many of those loans after having already defaulted on previous loans issued to him by the credit union. These loans were obtained in the names Cleveland Comfort Corp; SND, Inc.; Balkan Contracting; GBRS Properties, LLC; and Balkan Enterprise, Inc. The credit union lost approximately $3 million as a result of Vujovic’s fraudulent conduct.
Vujovic corruptly gave Raguz cash payments totaling approximately $20,000 to induce and reward Raguz for approving and facilitating the approval of the fraudulent loans to Vujovic, , according to court documents and trial testimony.
Raguz is currently serving a 14-year federal prison sentence.
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.
Dettelbach Attends White House Event to Mark the Fifth Anniversary of Landmark Shepard-Byrd Hate Crimes Prevention ActRead the Press Release
U.S. Attorney Steven M. Dettelbach was invited to the White House yesterday to speak at an event marking the fifth anniversary of the Shepard-Byrd Hate Crimes Prevention Act.
Dettelbach, who co-Chairs the Civil Rights Subcommittee of Attorney General Eric Holder’s Advisory Committee of U.S. Attorneys, moderated a panel discussion about enforcement of the Shepard-Byrd law. He was also present at the White House when President Obama signed the landmark act into law in 2009.
Providing keynote remarks at the event were Matthew Shepard’s parents, Judy and Dennis Shepard, and James Byrd Jr.’s sister, Louvon Harris, as well as Rana Singh Sodhi, the brother of Balbir Singh Sodhi, a member of the Sikh faith, believed to be the first murder victim of post-9/11 backlash.
“This anniversary was both happy and sad,” Dettelbach said. “Happy because of the positive impact this law has had in our communities, sad because of the tragedies that caused it to be enacted and which continue to require our constant efforts to enforce it. The grace and courage of the families of the victims in these terrible cases is simply inspirational. Talking with and listening to these incredible people reminded me again of the great privilege and responsibility we all have to protect the rights of every person in this nation.”
Speakers at the White House event, which was attended by invited leadership of the civil rights and law enforcement communities, also included Secretary of Labor Thomas Perez, FBI Director James Comey, Senior Advisor to President Obama, Valerie Jarrett, and Acting Assistant Attorney General of the Civil Rights Divison, Vanita Gupta.
The landmark civil rights legislation was named after Matthew Shepard, a 21-year-old student at the University of Wyoming who was gay, and James Byrd Jr., a 49-year-old African-American man living in Jasper, Texas. Both were brutally murdered in acts of unspeakable intolerance and hate.
The Shepard-Byrd Act, named in their honor, expanded federal hate crimes protections to include sexual orientation, gender, gender identity, and disability. The act also removed unnecessary hurdles to prosecuting hate crimes committed because of race, color, or national origin. It also gave the Justice Department new tools for prosecuting criminals and directed new resources to law enforcement agencies so they could better serve their communities. And it has made it possible for more Americans to live freely and openly, reinforcing our nation’s sacred commitment to equality for all.
Thursday’s event was an opportunity to recognize how the Shepard-Byrd Act has improved our ability to address hate crimes, and the tremendous amount of work that remains.
The Department of Justice also announced several actions to strengthen and improve the federal government’s ability to prevent and respond to hate crimes, including a new series of trainings on the Shepard-Byrd Act around the country for state, local, and tribal law enforcement agencies and community leaders.
In the past five fiscal years (2009-2013), the Department of Justice has charged 201 defendants on federal hate crimes or hate crimes-related charges, including the Shepard-Byrd Act and other federal hate crimes provisions -- an increase of almost 50 percent from the prior five fiscal years (2004-2008). The Department also convicted almost 50 percent more defendants on federal hate crimes or hate crimes-related charges, compared to the prior five fiscal years. The announcements will help federal and state law enforcement to continue to aggressively investigate and prosecute hate crimes nationwide.
Toledo-area Men Sentenced to Prison for $24 Million Fraud Involving Iraqi CurrencyRead the Press Release
Two men from the Toledo area were sentenced to prison for their roles in the operation of a $24 million fraud scheme involving the sale of Iraqi dinar currency and non-existent hedge funds, and falsely representing that a member of their organization was a decorated Marine who was wounded in combat, announced Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of IRS Criminal Investigation, Cincinnati Field Office.
Bradford L. Huebner, 67, of Ottawa Hills, Ohio, was sentenced to 87 months in prison while Charles N. Emmenecker, 67, of Sylvania, Ohio, was sentenced to 33 months in prison.
The men were convicted of conspiracy to commit wire fraud and wire fraud following a two-week trial in May in U.S. District Court in Toledo. Huebner was also convicted on 40 additional counts of money laundering and structuring.
Rudolph M. Coenen, 47, of Jacksonville, Florida, previously pleaded guilty to crimes related to his role in the conspiracy. He was sentenced last month to more than five years in prison.
Michael L. Teadt, 68, of Maumee, Ohio, was convicted on one count of mail fraud. He was sentenced to two years of probation and ordered to pay $5,767 in restitution.
Investors lost approximately $23.8 million from dinar sales and more than $700,000 from the sale of non-existent hedge fund “seats” and “placements” as a result of the defendants’ conduct, according to court documents and trial testimony.
“The trial evidence showed that these defendants swindled many people out of their hard-earned money with grandiose fraud claims and offensive lies,” said U.S. Attorney Dettelbach. “From misrepresenting U.S. and global fiscal realities to lying about a defendant's military record, these defendants' conduct not only broke the law, but offended basic concepts of decency.”
“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 Special Agent in Charge Enstrom. “Today’s verdict reinforces our commitment to every taxpayer that we will identify and prosecute those who promote illegal financial transactions.”
Beginning about August 2010, Huebner, Coenen, and Emmenecker conspired to operate the “BH Group” in Toledo and “Bayshore Capital Investments” in Jacksonville in order to defraud investors through investments in the Iraqi dinar currency and two non-existent hedge funds.
The conspirators promoted the dinar and non-existent hedge funds through the dissemination of a series of material falsehoods conveyed primarily through weekly interstate conference calls and through the conspirators’ web site, according to court documents and trial testimony.
False claims included statements about the U.S. Treasury Department’s holdings of dinar and involvement in the Iraqi dinar investment market, according to court documents.
Additional material false statements made by the defendants include, but are not limited to, the portrayal of Coenen as a former vice president at JP Morgan Chase and a former Marine who was awarded the Purple Heart after being wounded in Iraq during Operation Desert Storm.
Coenen worked for JP Morgan Chase for one day as an account executive/loan officer. He never served in the first Gulf War, was never wounded in combat and never received a Purple Heart, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys Gene Crawford and Matthew W. Shepherd following an investigation by the Internal Revenue Service – Criminal Investigation.
Pepper Pike Man Charged with Making False Statements Related to $1 Million in LoansRead the Press Release
A criminal information was filed charging Allen D. Youngman with making false statements to a federally-insured financial institution, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Youngman, age 59, of Pepper Pike, owned Lakeside Scrap Metals, Inc., and related scrap metal companies. On behalf of Lakeside, Youngman obtained an asset-based loan that permitted borrowing against Lakeside’s accounts receivable and inventory from from First Merit Bank, a federally-insured financial institution.
Between approximately March 26, 2012, and August 14, 2012, Youngman prepared and submitted fraudulent receivables invoices, that permitted drawing up to 85 percent of the invoice totals. Youngman provided First Merit with eight fraudulent invoices that allowed him to draw approximately $1,007,347 on the loan, according to the information.
This case is being prosecuted by Assistant U.S. Attorney James V. Moroney following an investigation by the Federal Bureau of Investigation.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Assistant U.S. Attorneys to be on Duty Election Day for Voting Rights or Election Fraud AbusesRead the Press Release
United States Attorney Steven M. Dettelbach announced today that Assistant United States Attorneys Ann C. Rowland and Ava R. Dustin will lead the efforts of his office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections.
In order to respond to complaints of voting rights or election fraud abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, Rowland and Dustin will be on duty in this District while the polls are open. Rowland can be reached by the public at 216-622-3847 while Dustin can be reached at 419-259-0767. The local FBI field office can be reached by the public at 216-522-1400.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Ashtabula Man Faces Federal Charges Related to Firearms and HeroinRead the Press Release
A federal grand jury returned a four-count indictment charging Michael G. Relliford, 31, of Ashtabula, with distribution of heroin, possessing with the intent to distribute heroin, being a felon in possession of a firearm and ammunition, and possession of a firearm in furtherance of a drug trafficking crime, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Count 1 of the indictment alleges that on or about July 16, 2014, Relliford distributed less than 100 grams of heroin.
Count 2 of the indictment alleges that on or about July 17, 2014, Relliford possessed with the intent to distribute more than 100 grams of heroin.
Count 3 of the indictment alleges that on or about July 17, 2014, Relliford possessed a Ruger, model P90DC, .45 caliber pistol, and ammunition, after having been previously convicted of Illegal Manufacture of Drugs, in the Ashtabula County Court of Common Pleas, Ohio.
Count 4 of the indictment alleges that on or about July 17, 2014, Relliford possessed the above mentioned Ruger firearm in furtherance of a drug trafficking crime.
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 Ashtabula Police Department. 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.
Columbus Man Ordered to Pay Nearly $450,000 for Tax ViolationsRead the Press Release
A Columbus man was ordered to pay nearly $450,000 in restitution and fines related to a tax conviction, 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.
David S. Owens aka D. Scott Owens, age 62, was ordered to pay $394,542 in restitution and fined $50,000. He was sentenced to six months of home confinement and three years of supervised released.
Owens previously pleaded guilty to one count of failure to account for an pay over employment tax.
"Business owners have a significant responsibility to collect and turn over all IRS withholding taxes,” Enstrom said. “Those who fail to do so to gain a competitive advantage that will not be tolerated and will be prosecuted to the fullest extent of the law.”
Between 2008 and 2009, Owens, through his Canfield, Ohio-based company, Advetech, Inc., made payroll tax withholdings from his employees’ paychecks, but failed to pay over those withholdings to the IRS in the approximate amount of $570,000, according to court documents.
Rather, during this period, Owens transferred hundreds of thousands of Advetech, Inc. dollars to at least two other Canfield companies owned and operated by Owens, including Brixton Development Corporation and Preferred Communities, Inc., from where he took hundreds of thousands of dollars in income for himself, according to the information.
The information was filed by Assistant U.S. Attorney Christos N. Georgalis after an investigation by agents of the the Internal Revenue Service and the U.S. Department of Labor, Employee Benefits Security Administration.
Marion Man Ordered to Pay Restitution, FineRead the Press Release
A Marion man was ordered to pay restitution and a fine and was sentenced to a term of probation following his conviction on a charge of making and causing a false statement on an annual statement regarding a company 401k plan, said Steven M. Dettelbach, United States Attorney.
John Richard Blazer, 68, was sentenced by Senior U.S. District Judge James G. Carr, who also imposed a $2,800 fine.
Blazer was charged in 2013 with several felony violations. His conduct involved a company named Neo-Wood Manufacturing, Inc., located in Alvada, Ohio. Neo-Wood, which was owned by John E. Werner III, maintained a 401k profit-sharing plan for its employees. Werner was also the sole trustee of the 401k plan. The Neo-Wood plan was subject to the Employee Retirement Income Security Act (ERISA), and under that Act, Neo-Wood was required to submit an annual financial report (Form 5500), which required among other items a report of assets held by the plan, and a disclosure of prohibited transactions with parties-in-interest to the plan, according to court documents.
On or about January 28, 2008, Blazer induced Werner to remove $28,000 from the Neo-Wood plan, and send that money to Blazer. Shortly thereafter, Blazer returned to Werner personally $25,200, or 90 percent of the money removed, and Blazer kept $2,800. This transaction was done by Werner and Blazer without the knowledge or authorization of the Neo-Wood employees, and the withdrawal left virtually no funds in the plan, according to court documents.
On or about April 30, 2009, an annual Form 5500 was submitted to the U.S. Department of Labor by Werner at Neo-Wood. The Form 5500 falsely reported that the $28,000 removed by Werner and Blazer remained in the plan as an asset. The Form 5500 also falsely omitted the commission of a prohibited transaction with the transfer through Blazer to Werner personally, according to court documents.
Prior to the taking of the $28,000, there had been three prior transfers totaling $140,000 in funds removed from the Neo-Wood 401k plan and given to Blazer. As a result of this investigation and prosecution, prior to Blazer’s guilty plea, $221,649 in restitution was paid by Blazer to the custodian of the Neo-Wood plan. This restitution payment, which included interest, resulted in restoring almost all of the improperly-removed funds to the Neo-Wood employee 401k accounts.
This case was investigated by the Employee Benefits Security Administration of the U.S. Department of Labor. The case was prosecuted by Assistant U.S. Attorneys Thomas Karol and James V. Moroney.
Youngstown Man Charged with Cocaine DistributionRead the Press Release
A federal grand jury returned a one-count indictment charging Antwan M. Grissett, 44, of Youngstown, with possession and attempted possession with intent to distribute cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on or about October 2, 2014, Grissett possessed and attempted to possess with the intent to distribute more than 500 grams of cocaine.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Postal Inspection Service 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.
Warren Man Charged with Assaulting Federal OfficerRead the Press Release
A federal grand jury returned a two-count indictment charging George Rafidi, 60, of Warren, with assault on a federal officer and with possession of a firearm in connection with a violent felony, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on or about October 8, 2014, Rafidi forcibly assaulted, resisted, impeded and interfered with federal law enforcement officers, who were engaged in their official duties, and brandished a firearm during the assault.
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 Department of Agriculture, Office of Inspector General, the United States Marshals Service, Homeland Security Investigations and the Lordstown 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.
Peruvian Man Sentenced to 17 1/2 Years in Prison for Sexually Exploiting a ChildRead the Press Release
A Peruvian man was sentenced to more than 17 years in prison for sexually exploiting a child, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
Edwin Franco Rolffo-Zavala, 24, of Novato, California, was found guilty earlier this year of sexual exploitation of a child, transporting visual depictions of minors engaged in sexually explicit conduct and travel with intent to engage in illicit sexual conduct.
Rolff0-Zavala is a Peruvian national who will face deportation upon completion of his prison sentence.
From on or about May 13, 2013, through on or about January 13, 2014, Rolffo-Zavala, used, persuaded, induced, enticed and coerced a minor, that is, a 13-year-old girl to engage in sexually explicit conduct, for the purpose of transmitting a live visual depiction of such conduct, and knowing and having reason to know that such visual depiction would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce, according to court documents.
From on or about January 1, 2011, through on or about January 13, 2014, Rolffo-Zavala 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, according to court documents.
On or about January 16, 2014, Rolffo-Zavala knowingly traveled in interstate commerce, from the State of California to the State of Ohio, for the purpose of engaging in illicit sexual conduct with a 14-year-old girl, according to court documents.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Akron Office of the Federal Bureau of Investigation and the Medina City Police Department.
Pair Indicted for $2.1 Million Mortgage Fraud Involving Westlake HomeRead the Press Release
A six-count indictment was filed in federal court charging a pair from Northeast Ohio of engaging in a $2.1 million mortgage-fraud scheme involving a Westlake home, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Derryl L. Tanner, 47, of Euclid, and Julie A. Becker, 39, of Cleveland, engaged in a conspiracy in 2006 to defraud several lending institutions related to transactions involving a home at 1517 Fitzroy Street.
Tanner learned that the builder of the home on Fitzroy was experiencing financial difficulties and was willing to sell the home for the cost of construction. Tanner enlisted Becker to serve as a straw buyer. He told her that if she allowed the property to be purchased in her name, she would not have to put any money down and would receive cash back at the time of closing for allowing her name to be used, according to the indictment.
Becker signed promissory notes that she had no intention of repaying. Funds were temporarily transferred into an account in her name so she could qualify for a mortgage, a home equity line and make a down payment. She also, with Tanner’s knowledge, provided false income tax returns for the same purposes, according to the indictment.
When Ohio Savings approved a $250,000 home equity line of credit application on the Fitzroy property, Tanner and Becker quickly spent the money, including transferring large sums of money into their personal bank accounts, according to the indictment.
Tanner moved into the Fitzroy property but was not able to make the monthly mortgage payment. The property went into foreclosure, resulting in losses of approximately $670,000 to First Place, $250,000 to Ohio Savings/Amtrust and $350,000 to National City/PNC, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Mark S. Bennett following an investigation by the U.S. Postal Service Office of Inspector General and Westlake 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.
Owner of Cuyahoga Falls Business Accused of Stealing $1.5 Million from Healthcare PlansRead the Press Release
A seven-count indictment was filed today accusing a former Copley resident of stealing more than $1.5 million from healthcare plans he administered and using the money to pay for bonuses, operating expenses, luxury car leases and a country club membership, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Robert Hartenstein, 61, was indicted of seven counts of theft from a health benefit program.
“This defendant was entrusted with millions of dollars to pay for hospital stays and medical tests, but instead betrayed that trust and used his clients’ money for fancy cars, lavish entertainment and his own business operations,” Dettelbach said.
Hartenstein in 1994 started Professional Benefits Association (PBA), a company that was a third-party administrator of healthcare plan benefits. It was located in Cuyahoga Falls and had a branch office in Austintown. Hartenstein was the majority owner, chief executive officer and chairman and secretary of its board of directors.
PBA had several clients that were companies which sponsored self-funded health care benefit plans for their employees. These companies hired PBA and paid it a fee to administer their benefit plans. Hartenstein knew PBA was required by law and by contract to establish individual segregated bank accounts for each of the client companies to hold, in trust, the funds the companies sent to PBA to pay claims from medical service providers, according to the indictment.
From at least 2000 through 2010, Hartenstein caused, authorized and directed expenditures from PBA’s operating account. Such expenditures included salaries and periodic bonuses to Hartenstein and PBA employees, payments to lease luxury cars and a country club membership Hartenstein used and an entertainment account Hartenstein used, according to the indictment.
A PBA employee identified in the indictment only as L.W. began regularly depositing plan funds from the companies into the PBA operating account instead of depositing those funds into the companies’ respective segregated trust accounts, as required by law and PBA’s contracts with the companies. This improper comingling of funds was done with Hartenstein’s knowledge, according to the indictment.
Hartenstein learned in 2008 or earlier that PBA did not have sufficient funds to pay the medical service provide claims for which the companies had already provided funds in trust to PBA. When he learned of the shortfalls, Hartenstein directed PBA employees to withhold payments from service providers for increasing periods of time. Employees made up excuses for the delays at Hartenstein’s direction, according to the indictment.
Hartenstein did not inform the companies of the shortfalls. Instead, he directed PBA employees to divert funds to pay for other outstanding claims. He misled PBA clients about the status of payments and why claims had not been paid. At Hartenstein’s direction, PBA employees made up false excuses for lack of payment to companies or falsely claimed payment had been made, according to the indictment.
According to the indictment, the health benefit plans that Hartenstein defrauded were for the following organizations: Guyan International, Inc. dba the Permco ($501,380); Pritchard Mining Company, Inc. ($435,837); Hocking Athens Perry Community Action ($384,574); O’Bleness Memorial Hospital ($91,877); Precision Gear ($54,612); Lordstown Schools ($32,835) and the Joseph Badger Local Schools ($29,357).
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by U.S. Department of Labor, Office of Inspector General and Employee Benefits Security Administration.
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 Royalton Man Indicted for Home Loan-Modification SchemeRead the Press Release
A North Royalton man was indicted today for operating a loan-modification scheme in which he defrauded more than 90 homeowners struggling to make their mortgage payments out of at least $250,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Robert Walker, age 43, was indicted on 21 counts of mail fraud and two counts of wire fraud.
Walker is accused of making multiple false representations. He convinced homeowners on the verge of foreclosure to pay himself and his company an up-front fee of at least $1,995 but then did little or no work to get a loan modification for customers, according to the indictment.
The indictment alleges that Walker promised customers that, if not modification was obtained, 80 percnet of the fee would be reimbursed. But Walker never intended to reimburse those fees and when he failed to obtain a loan modification, he regularly refused the promised reimbursement.
“This defendant preyed upon people struggling to pay the bills and instead of helping them, he ripped them off,” Dettelbach said.
“While these people were facing hard times with the very real possibility of losing their homes, this predator took full advantage of their vulnerable position and lined his pockets with money,” Anthony said.
According to the indictment filed in federal court:
Walker incorporated and owned The Modification Group, or TMG, where he supervised and directed the employees. TMG did business under various names, including The Modification Group 4, US Modification Group and Loan Modification Group, among others. It had offices at various times in Broadview Heights, Middleburg Heights, Bedford, Parma Heights, Ravenna and Cleveland.
TMG solicited people who were struggling to pay their home mortgages or that were pending foreclosure and offered to help improve their financial situation and avoid foreclosure by interceding on their behalf with the lending institution and obtaining a loan modification. TMG advertised itself – using direct mailings, telephone calls, a website and internet and radio advertisements – as “specializ(ing) in loan modifications, debt settlements, credit repair, and financial planning services” and having “experienced negotiators that will secure your home with the lowest fixed rate available.” TMG claimed it “will eliminate or reposition all late payments back into your loan, bringing the account current, while also lowering your interest rate or payment, making it easier for you to afford.”
From 2009 through 2011, Walker devised a scheme to defraud by making representations that he knew TMG could not keep and had no intention of keeping, including: “”Are You In A Loan You Can’t Afford? We Will Modify It. Guaranteed.” Or “What [TMG] Can Do To Help: Lower interest rates (2-5.5% fixed) giving you a reduction in monthly payments; eliminate or shorten 2nd Lien, and/or lowering overall principle balance; Position yourself out of an interested only or adjustable rate mortgage and into a fixed 30 or 40 year payment.”
Walker, through TMG, required consumers to pay $1,995 or 1 percent of the mortgage balance, whichever was greater, up front, before TMG worked on obtaining a loan modification.
Walker directed his employees at TMG to solicit and accept clients for whom he knew TMG would not be able to obtain loan modifications on terms that that customers could realistically afford. Through TMG, he required customers to enter into written service agreements that were substantially one-sided, in favor of TMG. He also directed employees to tell potential customers that TMG would refund 80 percent of the fee paid if TMG failed to obtain a loan modification, when Walker had no intention of refunding the fee.
Walker, through TMG, prohibited customers from contacting their lending institution and directed customers to send any and all correspondence from their lenders to TMG.TMG often failed to obtain any loan modification for the customer. In some cases, TMG never contacted its customer’s lending institution to discuss a modification even though the customer had paid substantial monies to Walker and TMG to do so.
Walker and his employees at TMG often created illegitimate reasons that they claimed voided TMG’s contract to avoid refunding customer’s fees. For example, TMG often told customers that they had not provided requested documents quickly enough, and terminated their contracts without a refund.
Walker, through TMG, told customers who attempted to cancel their contracts that doing so was a breach that voided their right to a refund. He often refused to issue a refund for customers for whom TMG had failed to obtain a loan modification unless the customer filed a complaint with a consumer protection agency.Defrauded customers include residents in Lakewood, Cleveland, Eastlake, Streetsboro and North Ridgeville, as well as North Carolina, Virginia, Connecticut, Indiana and elsewhere, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Federal Bureau of Investigation and the Ohio Attorney General’s Office, Consumer Protection Section.
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.
Medina Man Faces Crack Cocaine ChargesRead the Press Release
A federal grand jury returned a one-count indictment charging Jeimil A. Henderson, age 22, of Medina, with possession with the intent to distribute and distribution of crack cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Henderson was arrested by members of the Medina County Drug Task Force and Drug Enforcement Administration on a criminal complaint after an investigation.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the 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 Medina County Drug Task Force, Medina Police Department and the Drug Enforcement Administration. The matter is being prosecuted by Assistant United States Attorney Teresa Riley.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Lorain Man Faces Child Pornography IndictmentRead the Press Release
Robert Noel, 54, of Lorain, was charged with receiving 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 16, 2014, through on or about September 17, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Noel knowingly received, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce.
The indictment also charges that on September 25, 2014, Noel possessed an external 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 Elyria Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Lorain Man Charged with Child Pornography ViolationsRead the Press Release
Scott Eric Sherwood, 54, of Lorain, was charged with transporting and possessing visual depictions of minors engaged in sexually explicit conduct, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about October 1, 2012, through on or about November 1, 2013, in the Northern District of Ohio, Eastern Division, and elsewhere, Sherwood knowingly transported, using any means and facility of interstate and foreign commerce and in and affecting interstate and foreign commerce, numerous computer files, which files contained visual depictions of a real minor engaged in sexually explicit conduct.
The indictment also charges that on September 25, 2014, Sherwood possessed an external 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 Elyria Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Guatamalan Man Charged with Illegally Being in U.S. Despite FelonyRead the Press Release
A federal indictment was filed today charging an individual with being found in the United States without permission after previously being deported, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Vicente Sica-Ixcoy, 32, a citizen of Guatemala, is named in the indictment. The indictment charges one count of being found inside the United States in the Northern District of Ohio without the express permission of the Attorney General of the United States or the Secretary for Homeland Security.
The indictment alleges that on or about September 18, 2014, the defendant was found in Dover, Ohio, having previously been deported on at least one occasion from the United States, subsequent to a conviction for the commission of an aggravated felony, namely unlawful sexual contact with a minor, in the Common Pleas Court of Tuscarawas County, Ohio.
The case is being prosecuted by Assistant United States Attorney Marisa T. Darden, following an investigation by the Department of Immigration and Customs Enforcement. 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.
Virginia Executive Indicted for Fraudulently Receiving Confidential Information About VA Construction ProjectsRead the Press Release
A 23-count indictment was filed charging a Virginia executive with providing things of value to the former director of the Cleveland and Dayton Veterans Affairs Medical Center in exchange for confidential information about VA construction projects, law enforcement officials said.
Mark S. Farmer, 54, of Arlington, Virginia was charged with one count of conspiracy to commit mail fraud, wire fraud and theft of government property; two counts of wire fraud; six counts of embezzlement and theft; one count of violating the Hobbs Act and 13 counts of mail fraud.
Farmer was employed at an integrated design firm that performed work for the VA. He worked in several different capacities, including associate principal. The business is identified in the indictment only as “Business 75”.
Farmer and Business 75 received VA records and things of value, including non-public information concerning the VA and streamlined access to public information concerning the VA, which William Montague had embezzled and stolen without authority from the VA. This was done to give Farmer and Business 75 an advantage over other companies in the awarding and administration of VA business.
Montague, the former director of the Cleveland and Dayton Veterans Affairs Medical Center, pleaded guilty earlier this year to 64 counts related to his role in the conspiracy. He is awaiting sentencing.
“Bribing a public official to obtain internal government documents and information for a competitive business advantage is illegal,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The FBI will continue to root out corruption at all levels.”
“Contractors and employees conspiring to defraud the VA is particularly intolerable as the VA struggles to effectively serve our nation's veterans,” said Gavin McClaren, U.S. VA OIG, Resident Agent in Charge, Cleveland.
Farmer asked Montague to obtain information concerning VA contracts and business, including VA records. Montague used his power and influence at the VA to gain access to VA employees in ways that Farmer and Business 75 could not. Montague gave false and misleading information to VA employees about Montague’s reasons for requesting VA records and information, according to the indictment.The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon following an investigation by the FBI and United States Department of Veterans Affairs – Office of Inspector General.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.Akron Doctor Pleads Guilty to Illegally Prescribing PainkillersRead the Press Release
An Akron physician pleaded guilty to illegally prescribing hundreds of thousands of doses of painkillers and other pills to customers for no legitimate medical purpose, even after he learned some customers had died from overdose-related deaths, law enforcement officials said.
Adolph Harper, Jr., 64, pleaded guilty to one count of conspiracy to traffic drugs, four counts of health care fraud and 16 counts of drug trafficking. He is scheduled to be sentenced Jan. 27.
Also today, Patricia Laughman, 52, of Barberton, Ohio, pleaded guilty to one count of conspiracy to traffic drugs and 14 counts of drug trafficking, while Adria Harper, 35, of Akron, pleaded guilty to one count of conspiracy to traffic drugs and 25 counts of drug trafficking.
Tequilla Berry, 35, of Akron, pleaded guilty earlier this year to one count of conspiracy to traffic drugs and seven counts of drug trafficking.
Together, they distributed hundreds of thousands of doses of prescription medications—including Oxycontin, Percocet, Roxicet, Opana, and others—from Adolph Harper’s medical officers in Akron between 2009 and 2012, according to court documents.
“Doctor Harper is simply a drug dealer who happened to wear a white coat and worked from a medical office instead of a street corner,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “His actions destroyed lives and families.”
Steven D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, said: “Just because you have a prescription pad does not give you a license to deal drugs. Not only did this doctor violate the physician’s oath but he also allowed others in his office to abuse his medical privileges.”
All four defendants conspired to distribute addictive controlled substances, including prescription painkillers and anti-anxiety medication, outside the usual course of professional practice and without any legitimate medical purpose, according to court documents.
Adolph Harper’s customers, many of whom were drug addicts exhibiting clear signs of drug addiction during their visits to his office, came to his office and received “prescriptions” for addictive prescription medications without being examined by Harper and often without seeing him at all, according to the court documents.
Harper continued to distribute prescriptions for controlled substances after he learned that some of his customers had died from overdose-related deaths, according to the court documents.
Adria Harper, Laughman and Berry distributed prescriptions to these customers when Adolph Harper was out of the office and also used Adolph Harper’s prescription pad to distribute prescriptions for addictive painkillers to themselves, according to the court documents.
Additionally, Adolph Harper executed four separate schemes to defraud health insurance providers by (1) submitting insurance claims for services using a higher billing code than the service justified; (2) submitting insurance claims for unperformed services; (3) billing an insurance provider for a service after collecting a cash payment for the same service; and (4) causing the submission of insurance claims for prescriptions for controlled substances that were issued outside the usual course of professional practice and not for a legitimate medical purpose, according to court documents.
This case is being prosecuted by Assistant United States Attorneys Margaret A. Sweeney, Edward F. Feran, and Rebecca C. Lutzko following an investigation by the Federal Bureau of Investigation, the Department of Health and Human Services -- Office of the Inspector General, the Drug Enforcement Administration, the Ohio Board of Pharmacy and the Akron Police Department.
Twenty-three People Indicted for Canton Cocaine ConspiracyRead the Press Release
A 47-count indictment was filed in federal court charging 23 people for their roles in a conspiracy that brought and sold cocaine and crack cocaine to Canton, law enforcement officials announced.
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 FBI’s Cleveland Office and Canton Police Chief Bruce Lawver.
"This group brought pounds and pounds of cocaine into Stark County,” Dettelbach said. “Only through the good work of the FBI, the Canton police and all our partners was the pipeline shut down.”
“These individuals brought danger and illicit drugs to the streets of Canton and the surrounding territory,” Anthony said. “The FBI will continue collaborative law enforcement efforts to rid our streets of such poison and make our communities a safer place to live.”
“These cases make a significant impact on the community through the arrest and prosecution of those responsible for the violence on our streets,” Lawver said. “By focusing on the gang members, drug traffickers and those who are responsible for the violence, we are able to form better relationships with our community as a whole.”
All those indicted are from Canton unless otherwise noted. Indicted are: James E. Walton, 39; Mario Munoz-Gonzales, 27, of Grove City; Eduardo Arredondo, 26; Jose Magueyal, 39; Raymond Jackson, 34; Marcus Houston, 39; Dardisi Alexander, 26; Darcell Anthony, 45; Dontez Lewis, 33; Abraham Joaquin, age unknown; Jack Pearson, 41; Brian Pinkney, 31; Dwight Martin, 55; Dante Harvey, 35; William Nicholson, 32; Terrance Wharton, 34, of Barberton; John Coburn, 27; Richard Taylor, 32; Clifford Cantwell III, 35; Justin Sybole, 26; Richard Crawford, 31, of Louisville, Ohio; Gregory Archer, 50, and Allen Woodson, 26.
The indictment details a two-year conspiracy in which Magueyal obtained kilogram-quantities of cocaine from Arredondo and Munoz-Gonzales. Magueyal, in turn, provided cocaine to Walton, Jackson, Houston, Alexander, Nicholson, Wharton, Joaquin, Taylor, Cantwell, Sybole, Woodson and others for distribution, according to the indictment.
Walton then provided cocaine and crack cocaine to Anthony, Lewis, Pearson, Harvey, Coburn, Pinkney, Martin, Archer, Crawford and others for distribution, according to the indictment.
Walton used stash houses and a storage locker to store drugs, drug proceeds and drug packaging materials, according to the indictment.
Prosecutors are seeking to forfeit several things used as part of or as a result of the criminal conspiracy, including three Canton homes, at 2914 Fairmount Blvd. NE (titled to Magueyal); 4707 Cleveland Ave. SW (titled to Cantwell) and 514 Webster Ave. NE (titled to Pinkney); four firearms, more than $85,000 in cash and four vehicles – a 1975 Oldsmobile Delta 88 Royale, a 2006 BMW 740i, a 2008 GMC Acadia and a 2007 Chevrolet Silverado Crew Cab LS, according to the indictment.
This indictment is the result of an investigation by the Stark County Safe Streets Task Force, which includes members of the Federal Bureau of Investigation, the Canton Police Department, the Jackson Township Police Department, the Alliance Police Department and the Ohio Adult Parole Authority, with assistance from the Ohio State Highway Patrol and the Stark County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Teresa Riley and Henry F. DeBaggis.
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.
Struthers Woman Indicted for Theft of Government FundsRead the Press Release
A federal Grand Jury returned a one-count indictment charging Beverly Boyd, 57, a resident of Struthers, Ohio, with theft of government funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Boyd, the Rrpresentative payee for her father, stole government funds from the date of her father’s death on November 25, 2007, until August 2013. Boyd accomplished this scheme by concealing her father’s death and then converting her father’s Social Security benefits for her own use in violation of her responsibilities as a Representative Payee and federal law.
Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the SSA Office of Inspector General.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Ohio Man Charged with Defrauding Social SecurityRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a one-count indictment charging Joyce L. Humes, age 62, of Dennison, Ohio, with one count of theft of government funds.
The indictment alleges that from on or about December 1, 2009, through October 31, 2013, Joyce L. Humes stole Social Security survivor benefits in the amount of $50,618 from the United States Social Security Administration to which she was not entitled.
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 Office of Inspector General of the United States Social Security Administration.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Mexican Man Charged with Illegally Reentering the United StatesRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a one-count indictment charging Fidel Gaytan-Santillan a.k.a. Fidel Gayton-Santillan, age 34, of Mexico, with unlawful reentry into the United States on September 26, 2014.
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 Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.