Northern District of Ohio
Press releases recorded for this federal judicial district.
Canton Man Sentenced to Nearly Two Years in Prison for Laundering Gambling ProceedsRead the Press Release
A Canton man was sentenced to nearly two years in prison and ordered to forfeit $28,000 in cash as well as cell phones and computers after he previously pleaded guilty to conspiring to launder illegal gambling proceeds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Conrad (Smokey) Everett, Special Agent in Charge, United States Secret Service, Cleveland Field Office.
Christos Karasarides, 48, was sentenced to 22 months in prison. He was also fined $25,000, in addition to the forfeiture ordered by U.S. District Judge James Gwin.
Kararsides conducted a sports bookmaking business by accepting wagers on sporting events, including NFL football, NCAA football, NBA basketball and NCAA basketball games, paying out winnings, collecting losses and collecting a percentage or “vigorish” for each wager placed, according to court documents
Kararsides used off-shore internet gambling services to record and process bets paid by gamblers. He also accepted payments of gamblers’ losses in the name of his business to facilitate the collection and hid the nature of the source of the sports bookmaking activities, according to court documents.
He also pleaded guilty to possession of Oxycodone and was sentenced to one year in prison for that offense, to be served concurrently to the money laundering sentence.
This case was prosecuted by Assistant U.S. Attorneys Samuel Yannucci and Robert E. Bulford following an investigation by the U.S. Secret Service and the Secret Service Money Laundering Task Force, is a multi- agency group comprised of the U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigations, Ohio Department of Public Safety, Ohio Adult Parole Authority and the Cleveland Police Department.
Two from Northeast Ohio Sentenced to Prison for Persuading Minor to Engage in Sexually Explicit ConductRead the Press Release
Two men from Northeast Ohio were both sentenced to more than eight years in prison after pleading guilty to two counts of inducing a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Randall S. Allman, 38, of Strongsville, and Shawn M. Kadras, 34, of Cleveland, on two occasions in February 2013, did persuade, induce, entice and coerce a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct, according to the indictment.
Kadras was sentenced to 110 months in prison while Allman was sentenced to 97 months in prison.
The case was prosecuted by Assistant United States Attorney Michael A. Sulivan following an investigation by the Federal Bureau of Investigation’s Safe Streets Task for and the Summit County Sheriff’s Office.
Twinsburg Man Sentenced to Nearly Five Years in Prison for Tax FraudRead the Press Release
A Twinsburg man was sentenced to nearly five years in prison and ordered to pay approximately $1.2 million in restitution for his role in a tax-fraud conspiracy, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, IRS-Criminal Investigation Special Agent in Charge.
Brian D. Krantz, 47, previously pleaded guilty to one count of conspiracy to make false claims for income tax refunds and five counts of making such false claims. U.S. District Judge Sara Lioi sentenced him to 57 months in custody.
“Those individuals who engage in this type of financial fraud should know they will not go undetected and will be brought to justice,” Dettelbach said.“This sentence sends an important message to America’s taxpayers who play by the rules that we have no tolerance for those who make up their own rules,” Enstrom said.
The conspiracy included filing false income tax returns claiming false refunds totaling more than $8.8 million. Based on those false claims, the U.S. Treasury issued 17 refund checks totaling approximately $3,615,586 payable to Krantz and various corporations controlled by Krantz and his co-conspirator, Bryan D. McCallum, according to the court documents.
Krantz owned and controlled two corporations that engaged in financial services and/or real estate investment business activities. McCallum, of Parma Heights, worked as an accountant/ bookkeeper at the companies, according to court documents.
From approximately April 2009 through June 8, 2010, Krantz and McCallum conspired to make false claims for tax refunds using income tax returns filed with the IRS in the names of Krantz, companies formed by Krantz and McCallum, and several “shelf” companies purchased by Krantz. A “shelf” company is a corporate or other formal non-operating business entity established for the purpose of being held for sale to another person, according to court documents.
The scheme involved the use of fake IRS Forms 2439, titled “Notice to Shareholder of Undistributed Long-Term Capital,” purportedly issued by some of the shelf companies to the persons and companies in whose names the false returns were filed. A Form 2439 is to be issued by a regulated investment company (RIC) or real estate investment trust (REIT) to report undistributed capital gains and taxes withheld from those gains on behalf of RICs or REITs shareholders. Under federal tax law, RICs and REITs are entities that are not taxed on their earnings but instead pass those earnings to their shareholders who, in turn, have the obligation to report those earnings and any resulting tax liabilities on the shareholders’ income tax returns. The returns filed pursuant to the conspiracy claimed substantial amounts of Form 2439 withholding credits, when, in fact, none of the companies listed as RICs or REITs on the forms were actually RICs or REITs or had any undistributed capital gains or withheld taxes, according to court documents.
Krantz used more than $1 million of the refund proceeds to finance a real estate venture he established with other partners, known as Phoenix Ventures Partners LLC. Krantz and McCallum misled Krantz’s real estate partners to believe that a group of Colorado-based hard money lenders had provided the funds.
McCallum previously pleaded guilty to a two-count information charging him with the same false claims conspiracy and with making 30 false claims. He was sentenced to three years in prison and ordered to pay approximately $1.2 million in restitution.
The government’s case was prosecuted by Assistant United States Attorneys John M. Siegel and Justin J. Roberts, following an investigation by the Internal Revenue Service, Criminal Investigation.
Canal Fulton Man Sentenced to 15 Years in PrisonRead the Press Release
A Canal Fulton man sentenced to 15 years in prison after previously been found guilty of two counts of inducing a minor to engage in sexually explicit conduct and two drug charges, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
William P. Lacey, 55, on two occasions in February 2013, did persuade, induce, entice and coerce a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct, according to the indictment.
He also possessed four kilograms of the substance a-PVP and one kilogram of the substance 4-MEC, according to court documents.
The case was prosecuted by Assistant United States Attorney Linda Barr following an investigation by the Federal Bureau of Investigation’s Safe Streets Task for and the Summit County Sheriff’s Office.
People Reminded of Stiff Penalties for Violation Tax Laws as Filing Deadline ApproachesRead the Press Release
Several Ohioans have been found guilty and sentenced to prison for violating federal tax laws over the past few months, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, said Kathy Enstrom, Special Agent in Charge of IRS Criminal Investigation’s Cincinnati Field Office.
As the 2014 tax filing deadline approaches, these cases serve as reminders that there are civil and sometimes criminal penalties to filing erroneous tax returns.
“Tax day is not fun, but the vast majority of Americans who properly report and pay their fair share need to know that we will aggressively prosecute those who shirk or flaunt their obligations,” Dettelbach said.
“IRS Criminal Investigation takes violations of the tax law very seriously,” Enstrom said. “The investigative work done by Criminal Investigation is a part of an aggressive effort by the IRS to combat tax fraud on all fronts. With the April 15 tax deadline upon us, it is important for people to have confidence that when they pay their taxes, their neighbors, friends and co-workers are doing the same.”
Details on a few cases over the past year:
United States v. Gooch and Scott: Don P. Gooch and Gerard F. Scott, self-proclaimed “citizens of the world,” found guilty of conspiring to defraud the Internal Revenue Service out of more than $8 million. Gooch, 64, of East Cleveland, was sentenced to eight years in prison while Scott, 38, was sentenced to 10 years in prison .
In early 2011, Scott obtained a tax identification number for a purported trust (the Gerard Frank Scott Trust) and filed false Forms 1099-INT with the IRS stating that the trust had paid millions of dollars of interest income to Gooch, a woman identified at trial as Scott’s wife, and two other trusts purportedly set up by Scott and Gooch, from which a total of $17 million of taxes had purportedly been withheld. Based on those false 1099 forms, the conspirators caused false income tax returns to be filed for Gooch and Scott’s wife, and the two other trusts claiming false income tax refunds totaling approximately $8,033,930, according to court documents.
United States v. Mace: Brandon Mace, 35, of Canton was sentenced to more than six years in prison for claiming false income tax refunds totaling nearly $5.5 million. Mace filed the false claims while incarcerated on state charges. Mace pleaded guilty to two counts stating that he prepared and filed false income tax returns for the years 2008 and 2009 claiming false tax refunds in the amounts of $207,000 and $5,292,000, respectively.
United States v. Hall: A former Toledo medical doctor was sentenced to five years in prison after previously pleading guilty to crimes related to the dispensation of 1,300 pills of Oxycodone and fraudulently billing Medicaid for more than $78,000. Darrell A. Hall, 54, pleaded guilty to conspiracy to distribute a controlled substance, health care fraud and a tax count. He failed to pay $97,384.88 in taxes that he owed to the Internal Revenue Service owed on behalf of EDM Health Services, LLC, between 2007 and 2010, according to court records.
Three Texas Men Indicted for Possessing More Than 100 Pounds of CocaineRead the Press Release
A federal grand jury in Cleveland returned a one-count indictment charging three Texas men with possession with the intent to distribute approximately 51 kilograms of cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are Guadalupe J. Zarate, age 42, of Penitas, Texas, Jesus Alberto Flores, age 25, of Pharr, Texas, and Noe Romero Salinas, age 32, of Rio Grande, Texas.
The men were in possession of the drugs in the Northern District of Ohio on April 4, 2014, according to the indictment.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Akron Police Department, the Summit County Sheriff’s Office, and the Akron-Summit County High Intensity Drug Trafficking Area (HIDTA) initiative. The case is being prosecuted by Assistant United States Attorney Samuel A. Yannucci.
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.
Wickliffe Man Charged Faces Child Pornography ChargeRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that William Lintala, 31, of Wickliffe, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
The indictment charges that from in or about March 27, 2010, through on or about October 22, 2013, Lintala knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct, and possessed an Intel i5 tower computer, a Western Digital hard drive, and a Kingwin Brand USB external hard drive that contained child pornography on November 5, 2013.
If convicted, the sentence in this case will be determined by the Court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Federal Bureau of Investigation, Painesville Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Maple Heights Man Indicted for Robbing Banks in Richmond Heights and Shaker HeightsRead the Press Release
A federal grand jury returned a three-count indictment charging Christian Emerson, age 20, of Maple Heights, Ohio, with armed bank robbery and brandishing a firearm during the commission of a felony, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Christian Emerson robbed a Huntington Bank in Richmond Heights, Ohio, and stole approximately $2,306.00 from the bank. The indictment further alleges that Christian Emerson robbed a Citizens Bank in Shaker Heights, Ohio, stole approximately $1,304.14 from the bank, and brandished a firearm during the commission of the robbery.
If convicted, Emerson’s sentence will be determined by the Court after review of factors unique to this case, including Emerson’s prior criminal record, if any, his role in the offense and the unique characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum
The case is being prosecuted by Assistant U.S. Attorney Adam J. Hollingsworth following an investigation by the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt
Elyria Man Faces Bank Robbery and Firearms ChargesRead the Press Release
A federal grand jury returned a four-count indictment charging Jonathon E. Schubert, age 29, of Elyria, Ohio, with armed bank robbery and brandishing a firearm during the commission of a felony, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Jonathon E. Schubert robbed three different PNC Banks (in Sheffield Village, Cleveland, and North Olmsted, Ohio) on November 26, 2013, January 27, 2014, and March 10, 2014, stealing approximately $15,315.75 from the banks, and brandishing a firearm during the commission of the November 26,2013 robbery.
If convicted, Schubert’s sentence will be determined by the Court after review of factors unique to this case, including Schubert’s prior criminal record, if any, his role in the offense and the unique characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum
The case is being prosecuted by Assistant U.S. Attorney Adam J. Hollingsworth following an investigation by the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt
Elyria Man Charged with Heroin and Fentanyl Distribution, Including Fentanyl Which Caused the Death of an Elyria ResidentRead the Press Release
A six-count indictment was filed charging an Elyria man with distribution of heroin and fentanyl, including distributing fentanyl that caused the death of an Elyria resident on Nov. 9, 2013, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Siarres R. Noble, age 29, faces two counts of distribution of heroin and four counts of distribution of fentanyl.
The charges include the specification that alleges the fentanyl Noble distributed on November 8, 2013, resulted in the death of an Elyria resident one day later.
“The poison sold by this defendant directly led to the death of a woman,” Dettelbach said. “Heroin and fentanyl use leads to death, destroys lives and damages families. We will continue doing all we can to turn the tide on this epidemic.”
“Information about heroin and other dangerous illegal drugs has become too common place in our daily news reports,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The partnership between law enforcement, social services and the community must continue in order to further attempts to rid our territory of these highly addictive substances.”
Elyria Police Chief Duane Whitely said: “There is a serious drug problem in this country and it is important that law enforcement at every level take the steps necessary to combat the sales of illegal drugs. Sadly, in this case, the sale of drugs led to someone’s death. The weapon used may not have been a gun, but it is just as deadly.
“I want to thank everyone involved in this case for the effort they put into it. Starting with the response from Elyria Police Investigative Unit for responding so quickly to the spike in overdoses that led to the arrest of Siarres Noble for selling the drugs that led to the death. I cannot say enough about the efforts put forward by the Lorain County Prosecutor’s office, the FBI and the U.S. Attorney’s office. It is the strong working relationship between all of these agencies that led to the federal indictment of Siarres Noble,” Whitely said.
The indictment results from an investigation conducted by the Elyria Police Department and the Federal Bureau of Investigation.
The case was presented for indictment by Assistant United States Attorneys Robert F. Corts and Vasile C. Katsaros and Special Assistant United States Attorney Margaret Tomaro.
If convicted, the defendants’ 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.
Cuyahoga Falls Man Pleads Guilty to Trying to Buy A ChildRead the Press Release
A Cuyahoga Falls man pleaded guilty to offering to buy a child, enticement, and receiving and distributing visual depictions of minors engaged in sexually explicit conduct, 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.
Robert W. Thomas, 37, is scheduled to be sentenced July 24.
“The conduct laid out in the indictment should sound an alarm for all parents,” Dettelbach said. “We will remain vigilant in protecting our children from predators.”
“Mr. Thomas’ behavior and his stated desires for wanting to buy a child are frightening,” Anthony said. “Law enforcement will continue to proactively and aggressively pursue predators that intend to harm our children and this is yet another reminder for parents to be aware of their child's Internet activities.”
From on or about January 6, 2014, through on or about January 11, 2014, Thomas offered to purchase or otherwise obtain custody or control of a minor, that is, a 10-year-old girl, with the intent to promote the engaging in of sexually explicit conduct by such minor for the purpose of producing a visual depiction of such conduct; and such offer was communicated and transported using any means and facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce by any means including by computer, according to court documents.
From on or about January 6, 2014, through on or about January 11, 2014, Thomas knowingly used a computer connected to the Internet and a cellular phone, to attempt to induce a 10-year-old girl to engage in illegal sexual activity with him, according to court documents.
From on or about January 1, 2012, through on or about January 11, 2014, Thomas 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, according to court documents.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Canton Office of the Federal Bureau of Investigation and the Alliance Police Department.
Cleveland Woman Charged with Theft of Government FundsRead the Press Release
A federal Grand Jury returned a two-count indictment charging Rita Johnson, 61, of Cleveland, with theft of government funds and making false statements in relation to fraudulently securing Social Security benefits, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Johnson, the representative payee for her grandmother, stole approximately $74,197 in government funds from the date of her grandmother’s death on May 2, 2004 until March 2011.
Johnson accomplished this scheme by concealing her grandmother’s death and then converting her deceased grandmother’s Social Security benefits for her own use in violation of her responsibilities as a representative payee and federal law, according to the indictment.
The indictment also alleges that, when asked by federal agents about her grandmother, Johnson made false statements and fraudulently provided a forged funeral service program that listed an inaccurate date of death.
Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the Social Security Administration's Office of Inspector General.
If convicted, the Court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Cleveland Man Charged with Fraudulently Receiving $55,000 in Student Financial AidRead the Press Release
A Cleveland man was indicted on charges that he fraudulently received up to $55,000 in federal student financial aid funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Robert Williams, 35, faces one count of theft of federal student financial aid funds.
The indictment alleges that Williams enrolled in approximately six different Ohio colleges between 2007 and 2012 in order to receive Department of Education and Department of Veterans Affairs federal student aid benefits, despite the fact that he had no intention of obtaining a degree.
Williams used the federal student aid funds for his own personal use and enjoyment, according to the indictment.
Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the Department of Education -- Office of Inspector General and the Department of Veterans Affairs -- 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.Canton Company and Business Owner Charged with Fraud for Making False Statements to Get Federal WorkRead the Press Release
A Canton man and the construction company he owns were charged with one count of wire fraud for making false representations about the company’s office location so it could obtain a HUBZone certification and qualify for tens of millions of dollars’ worth of federal contracts, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Charged are William Richardson III, also known as Buster Richardson, and TAB Construction Company, Inc., of which Richardson is the sole owner and shareholder.
The Historically Underutilized Business Zone Act of 1997 (the HUBZone Program), was established to provide federal contracting assistance for qualified small business concerns located in historically underutilized business zones in an effort to increase employment opportunities, investment, and economic development in those areas. Under the HUBZone Program, certain government contracting opportunities were “set aside” to be awarded only to eligible HUBZone Program participants, according to the information.
There were four requirements to participate in the HUBZone Program. First, a firm had to be classified as a small business. Second, the firm had to be controlled and owned at least 51 percent by United States citizens. Third, a firm’s principal office had to be located in a designated HUBZone area. Fourth, at least 35 percent of the firm’s employees had to reside in a designated HUBZone area. Only firms that satisfied all of these requirements were eligible to participate in the HUBZone Program and compete for HUBZone set-aside and/or sole-source contracts, according to the information.
Before a firm could participate in this program and bid on designated government contracts, it had to seek and obtain a certification from the United States Small Business Administration (SBA) verifying that the firm was HUBZone Program eligible. The SBA relied on information that was provided by applicant firms to determine and certify eligibility, according to the information.
In August 2000, to obtain a HUBZone certification, Richardson and TAB submitted to SBA a HUBZone application in which Richardson falsely stated that TAB’s principal office was located at 1010 Walnut Avenue NE in Canton, a location that was within a designated HUBZone area. TAB’s principal office was actually located in another area of Canton that was not within a HUBZone area, specifically 4534 Vliet Street SW, according to the information.
Richardson falsely represented in TAB’s application that the Vliet Street SW location was only a storage area for equipment and was not the company’s principal office location. Richardson and TAB provided supporting information and documents to SBA, including a fake lease, to back up this false claim, according to the information.
Based on Richardson’s false representations, SBA certified that TAB was HUBZone Program eligible and placed TAB on the government’s List of Qualified HUBZone Small Business Concerns, according to the information.
With this designation, Richardson and TAB received more than $34 million in contracts from the U.S. Army Corps of Engineers, the U.S. Coast Guard and the National Park Service between 2005 and 2012, according to the information.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Small Business Administration – Office of Inspector General; Defense Criminal Investigative Service; Department of Homeland Security- Office of Inspector General and the U.S. Army’s Criminal Investigation Division.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Canal Fulton Man Faces Heroin, Cocaine and Firearms ChargesRead the Press Release
A federal grand jury returned a two-count indictment charging Myron A. Nash, age 39, of Canal Fulton, Ohio, with possession with intent to distribute cocaine and heroin, and being a felon in possession of a firearm and ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on January 31, 2014, Nash possessed less than 500 grams of cocaine and less than five grams of heroin.
The indictment further alleges that Nash possessed a Kel Tec 9mm handgun, as well as ammunition, having been previously convicted of crimes punishable by imprisonment for terms exceeding one year.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Samuel A. Yannucci.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Man Charged with Child Exploitation, Traveling to Ohio to Have Sex with A MinorRead the Press Release
Edwin Franco Rolffo-Zavala, 24, of Novato, California, was charged with 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, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that 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.
The indictment also charges that 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.
The indictment also charges that 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.
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 Akron Office of the Federal Bureau of Investigation and the Medina City 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.
Avon Man Charged with Bank Robberies and Calling in Bomb Threat to High SchoolRead the Press Release
A federal grand jury returned a three-count indictment charging Brett L. Benson, 40, of Avon, Ohio, with two counts of bank robbery and one count of making a bomb threat, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Benson robbed two banks in Elyria, Ohio: Talmer Bank & Trust on March 19, 2014 and Dollar Bank on March 24, 2014.
The indictment further alleges that Benson called in a bomb threat to the Elyria High School on the same date as the second bank robbery.
Assistant United States Attorneys Matthew B. Kall and Matthew J. Cronin are prosecuting the case following an investigation by the Federal Bureau of Investigation, the Elyria Police Department and other local law enforcement agencies.
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.
Stark County Trio Charged with Operating Illegal CasinosRead the Press Release
Three people from Stark County were charged in federal court with conspiring to launder money and operate illegal gambling businesses in Canton, Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
A two-count criminal information was filed charging Jerry Warren, age 70, of Canton, Tracie Warren-Pastore, age 45, of North Canton, and Yabacushyanei Bennett, age 45, of Canton, with one count of conspiracy to conduct an illegal gambling business and one count of conspiracy to launder money.
Prosecutors are seeking to forfeit more than $1.3 million in cash as well as four vehicles – a 2011 Jaguar XJ8, a 2011 Mazda CX-9, a 2008 Land Rover and a 2000 Porsche Boxter.
“This trio ran their own illegal casino in Canton, complete with 200 slot machines,” Dettelbach said. “Now the game is up, and they will be held accountable for their actions.”
“Federal laws that regulate the reporting of financial transactions are in place to detect and stop illegal activities,” said Kathy Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “IRS Criminal Investigation is committed to enforcing these laws and following the money, wherever it leads.”
“This case illustrates the need for vigilance in the enforcement of Ohio's Casino Control Act,” said Executive Director Matt Schuler of the state’s Casino Control Commission. “There are only four legal casinos in Ohio; this was clearly an illegal gambling house."
Warren, Warren-Pastore and Bennett conspired together to operate gambling businesses from 2008 through May 2013, including the Nugget, which was located in Canton, according to the information.
The group operated illegal gambling businesses, including the Nugget, as casinos, offering more than 200 slot machines where the public could gamble. These slot machines included but were not limited to the Frog Prince, Pharaoh’s Fortune, Lucky Meerkats, Treasure Diver, Enchanted Kingdom and others, according to the information.
The businesses remained in substantially continuous operation and sometimes had gross revenues of $2,000 or more in a single day of operation, according to the information.
If convicted, the sentences of Warren, Warren-Pastore and Bennett will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the person’s role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation is being conducted by the Internal Revenue Service with assistance from the Ohio Bureau of Criminal Investigation and the Ohio Casino Control Commission. The case is being prosecuted by Kevin Culum, Special Assistant United States Attorney.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Three Women Indicted for Tax FraudRead the Press Release
A 29-count federal indictment was filed charging three women for their roles in a tax fraud conspiracy in which they fraudulently claimed and received more than $436,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, IRS-Criminal Investigation Special Agent in Charge.
Indicted are Erica Harris, 32, and Shaunte Harris, 29, both of Toledo, and Latoya Gilmer, 29, of Detroit. The charges relate to conspiracy to defraud the government with respect to claims and false, fictitious, or fraudulent claims from 2009 through April 2010.
Harris, Gilmer and Harris approached individuals with little or no income and offered them a portion of the fraudulent tax refunds in exchange for their personal information and that of their children. Then the defendants filed false returns electronically, reporting false wages, false Social Security benefits and false 1099 withholding amounts typically exceeding $10,000, according to the indictment.
Collectively, they filed more than 40 false tax returns and received fraudulent returns totaling approximately $436,036, 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 agency in this case is the Internal Revenue Service in Toledo. 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. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Lakewood Man Indicted for Preparing False Tax ReturnsRead the Press Release
A Lakewood man who worked at a tax-preparation business was charged with conspiring to file false income tax returns, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of the Cincinnati Field Office of Internal Revenue Service – Criminal Investigations.
Godrich Machuta, 34, was charged in a 39-count indictment with conspiracy to defraud the United States, making false claims, wire fraud and other charges. He is accused of preparing or assisting in the preparation of false tax returns in which false claims of more than $158,000 were made, according to the indictment.
Machuta worked for Cleveland-based Paglory Tax Services in 2010 and 2011. During that time, he and Mwale Kakusa conspired to fraudulently obtain funds from the United States by filing income tax returns with false, fictitious or fraudulent claims, according to the information.
Kakusa has pleaded guilty to preparing more than a dozen tax returns that made false refund claims of approximately $52,468. He awaits sentencing.
This case is being prosecuted by Assistant United States Attorney Justin J. Roberts following an investigation by IRS-CI.
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 guilty beyond a reasonable doubt.
Youngstown Woman Indicted for Insurance-Fraud ArsonRead the Press Release
A three-count indictment was filed charging a Youngstown woman with setting fire to a rental property in order to collect insurance money, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Latasha Curtis, 33, of Youngstown, Ohio, faces with one count of conspiracy, one count of use of fire during the commission of a felony, and one count of maliciously damaging and destroying, and attempting to damage and destroy, by means of fire, real property used in interstate commerce and in activity affecting interstate commerce
The indictment charges that Curtis, along with others made known to the Grand Jury but not indicted, conspired to commit arson of a rental property located at 75 Hilton Avenue in Youngstown, and to commit wire fraud in submitting false claims against State Farm Insurance Corporation for the proceeds of an insurance policy on the property.
The property was burned in a fire occurring on October 19, 2013, which was intentionally set by Curtis and others, according to the indictment.
State Farm paid $67,916.10 after the insurance claim on the property was submitted, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of the federal sentencing guidelines and factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations.
This case was investigated by the Youngstown Resident Agency of the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney James V. Moroney.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Youngstown Man Charged with Failing to Register as Sex OffenderRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury sitting in Cleveland, Ohio, returned a one-count indictment charging Roland Fink, age 40, of Youngstown, Ohio, with failure to register as a sex offender.
The indictment charges that from on or about January 20 to February 27, 2014, Fink failed to register as a sex offender as required under the Sex Offender Registration and Notification Act, after having traveled in interstate commerce.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Marshals Service. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment in only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Youngstown-area Men Face Federal Firearms ChargesRead the Press Release
Three men from the Mahoning Valley were each indicted on one count of being felons illegally in possession of firearms and ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The cases are not related.
Darryl L. Lee, 25, of Youngstown, Ohio, was in possession of a Kel-Tec, model PF-9, 9mm pistol, and ammunition, on or about January 30, 2014, despite Lee having been previously convicted of aggravated assault, in the Mercer County, Pennsylvania, Court of Common Pleas, according to the indictment.
Alex C. Green, age 28, of Campbell, Ohio, was in possession of a Raven Arms, model P-25, .25 caliber pistol, a DPMS, model A-15, .223 caliber rifle, and ammunition, on or about February 18, 2014, despite Green having been previously convicted of being a felon in possession of a firearm in the U.S. District Court for the Northern District of Ohio, and of felonious assault, in the Court of Common Pleas, Mahoning County, Ohio, according to the indictment.
Whittington R. Davis, age 27, of Youngstown, Ohio, was in possession of a Bryco Arms, model 48, .380 caliber pistol, and ammunition, on or about February 1, 2014, despite Davis having been previously convicted of possession of cocaine, in the Mahoning County, Ohio, Court of Common Pleas, according to the indictment.
The Lee case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Youngstown Police Department and the Adult Parole Authority. The Green case was investigated by ATF and the Campbell Police Department. The Davis case was investigated by ATF and the Warren Police Department.
The cases are being prosecuted by Assistant United States Attorney David M. Toepfer.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Third Person Charged for Discharging Waste Related to Oil and Gas Drilling into the Mahoning RiverRead the Press Release
A third person has been criminally charged for discharging brine and wastewater related to oil and gas well drilling into the Mahoning River, law enforcement officials announced.
Mark A. Goff, 46, of Newton Falls, Ohio, was charged with one count of making an unpermitted discharge in violation of the Clean Water Act.
The conduct took place between October 1, 2012 and November 12, 2012, according to the information.
The filing of the criminal information was announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Ohio Attorney General Mike DeWine, James Zehringer, Director of the Ohio Department of Natural Resources, Craig W. Butler, Director of the Ohio Environmental Protection Agency, and Randall K. Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency.
According to the information and related court documents:
Hardrock Excavating LLC is owned by Lupo and located at 2761 Salt Springs Road, in Youngstown, Ohio. The company provides services to the oil and gas industry in Ohio and Pennsylvania, including the storage of brine and oil-based drilling mud. There were approximately 58 mobile storage tanks at the facility and each holds approximately 20,000 gallons.
Lupo, who owns Hardrock, directed employee Goff to empty some of the waste liquid stored at the facility into a nearby wastewater drain on or about October 1, 2012, according to the information.
Lupo directed Goff to conduct this activity only after no one else was at the facility and only after dark, according to the information.
Goff, at the direction of Lupo, emptied some of the lighter phase of the waste liquid being stored at the facility into the nearby stormwater drain using a hose on numerous occasions over the next two months, according to the information.
The last time Goff emptied some of the lighter phase of the waste liquid being stored at the facility into the drain was on or about November 12, 2012. In total, Goff emptied tanks at the direction of Lupo on approximately nine different nights, according to the information.
“Those who make it their business to harvest from under Ohio its great natural resources, have a responsibility to the men, women and children who drink its water, live on its land and breathe its air. And they have a duty to follow the law,” Dettelbach said. “This defendant broke the law and must be held accountable.”
“Mark Goff is another individual who carried out orders to release contaminated brine into Ohio’s waterways. It is crucial to the safety of our communities that everyone involved in this heinous crime be held accountable for their actions,” DeWine said.
“This incident is one of a small percentage of egregious environmental violations we see at Ohio EPA that must be prosecuted criminally,” Ohio EPA Director Craig Butler said. “This general disregard for the law will not be tolerated in Ohio and we will work with our partners at the local, state and federal agencies to make sure the responsible parties are held accountable. We especially appreciate the Federal Department of Justice quickly assisting Ohio in this case and applying its more stringent laws regarding Clean Water Act violations. ”
“Knowingly discharging toxic waste byproducts from drilling operations that ultimately flow into rivers has serious consequences for natural resources and local communities,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “Actions like these threaten to turn America’s waterways into chemical dumping grounds. Today’s charge should help protect the Ohio River watershed by deterring other would-be violators.”
This case is being prosecuted by Special Assistant U.S. Attorney Brad Beeson following an investigation by the Ohio EPA, Ohio Department of Natural Resources, U.S. EPA, the Ohio Bureau of Criminal Investigation, the Youngstown Department of Public Works and the Youngstown Fire Department.
The statutory maximum for violating the Clean Water Act for individuals is three years in prison, one year of supervised release and a fine of $50,000 per day of violation or $250,000, whichever is larger.
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 offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Solon Man Charged with Defrauding His Former Employer Out of Nearly $1.5 MillionRead the Press Release
A 15-count criminal indictment filed charging a Solon man with defrauding his former employer out of nearly $1.5 million, law enforcement officials said.
John A. Miller, 53, was charged with one count of conspiracy to commit mail fraud, nine counts of mail fraud, three counts of tax evasion and two counts of money laundering in connection with a scheme to defraud Parker Hannifin Corp.
“This defendant is accused of running a scheme in which he stole nearly $1.5 million from his employer,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “This type of self-dealing is not fair to workers or shareholders and will not be tolerated.”
Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, said: “Mr. Miller put a lot of effort into orchestrating and maintaining this seven year fraudulent scheme. Law enforcement will continue efforts to follow the money trial to ensure financial fraudsters are brought to justice.”
“Fraud and embezzlement schemes harm everyone,” said Kathy Enstrom, Special Agent in Charge, IRS Cincinnati Field Office. “As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer financial harm.”
Miller worked at Parker Hannifin Corp. (PHC) for 25 years where he directed work to outside contractors. In 2002, he approached his neighbor, Nancy Seaman, to do IT work for PHC, according to the indictment.
To do this, Seaman established Digital Design Services, Inc., which she operated out of her residence in Solon. In 2004, Miller approached R.K. (not charged herein), who owned and operated a billing company in Pennsylvania which had previously been a subcontractor for PHC. Miller requested that R.K. and his billing company prepare invoices and billings for PHC, and R.K. agreed to do so, according to the indictment.
Beginning around 2004, Miller engaged in a fraudulent scheme to increase the payment he was receiving from PHC by using subcontractors Seaman and R.K. to funnel payments to himself. He did his despite having a salaried position at PHC and without the knowledge or consent of PHC, according to the indictment.
Miller did this by falsely inflating the invoices submitted by Digital Design and Seaman and by asking R.K. to process payments and to pay subcontractors as designated by Miller. Under this arrangement, Miller submitted invoices in the names of Miller’s wife and son, even though neither had done any of the work submitted in these invoices nor were they even aware that Miller was using their names to submit such billings to PHC, according to the indictment.Miller caused a loss to PHC of approximately $1,489,494 between 2004 through 2011, according to the indictment.
Seaman was aware that additional amounts, over and above her Digital Design billings, were being sent to her. Miller instructed Seaman to pay these additional funds to him in cash, less a 30 percent commission to Seaman, according to the indictment.Seaman previously pleaded guilty in U.S. District Court to conspiring with Miller to conceal Miller’s tax liability from the Internal Revenue Service and to conspiring with Miller to commit wire fraud in a scheme to defraud Parker Hannifin. She is awaiting sentencing.
Miller is also charged with money laundering for using the funds he stole from Parker Hannifin Corporation to pay his tax liabilities to the IRS and to pay for his son’s tuition at Cornell University, according to the indictment.Miller is also charged with tax evasion for calendar years 2009 to 2011. During the calendar year 2009, Miller received approximately $192,042 in taxable income, and owed approximately $30,568 in income tax; during the calendar year 2010, Miller received approximately $378,571 in taxable income, and owed approximately $93,745 in income tax; and during the calendar year 2011, Miller had received approximately $217,060 in taxable income, and owed approximately $43,488.00 in income tax, according to the indictment.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations, in Cleveland, and is being handled by Assistant U.S. Attorney Christian H. Stickan.If convicted, the defendants’ 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.
New Middleton Man Faces Child Pornography ChargesRead the Press Release
Joey Thomas Holt, 56, of New Middletown, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about December 8, 2013, through on or about February 20, 2014, Holt knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on March 6, 2014, Holt possessed two computers, each 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 Youngstown 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.
Mansfield Woman Charged with Stealing from 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 Renee Brooks, age 57, of Mansfield, Ohio, with one count of theft of government funds.
The indictment alleges that from in or about July 1996, and continuing until in or about August 2011, Renee Brooks stole Social Security Disability Benefits in the amount of $92,081.53 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. Gregory C. Sasse, following 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.
Cleveland Man Charged with Failing to Register as Sex OffenderRead the Press Release
Charles McMillian, 46, of Cleveland, Ohio, was indicted today by a federal grand jury for failure to register and update registration as required under the Sex Offender Registration and Notification Act, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The United States Marshals Service in Cleveland, Ohio conducted the investigation. The case is being prosecuted by Assistant United States Attorney Miranda E. Dugi.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Akron Physician and Three Employees Indicted for Illegally Prescribing Hundreds of Thousands of Painkillers and Other PillsRead the Press Release
An Akron physician and three of his employees were indicted for 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 announced today.
Adolph Harper, Jr., 63, of Akron, Adria Harper, 34, of Akron, Patricia Laughman, 51, of Barberton, Ohio, and Tequilla Berry, 35, of Akron, are all named in the 134-count indictment.
The charges include conspiring to traffic pharmaceutical drugs, drug trafficking and health care fraud. 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 the indictment.
Count 1 of the indictment charges all four defendants with conspiring 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.
Adolph Harper’s customers, many of who 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 indictment.
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 indictment.
Adria Harper, Patricia Laughman, and Tequilla 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 indictment.
Counts 2 through 83 charge Adolph Harper with individual distributions of Schedule II controlled substances including oxycodone, oxymorphone and methadone.
Counts 84 through 109 charge Adria Harper with individual distributions of “prescriptions” for Schedule II controlled substances that she wrote out for herself using Adolph Harper’s prescription pad and for “prescriptions” that she distributed to customers when Adolph Harper, Jr. was not in the office.
Counts 110 through 123 charge Patricia Laughman with individual distributions of “prescriptions” for Schedule II controlled substances that she wrote out for herself using Adolph Harper’s prescription pad.
Counts 124 through 130 charge Tequilla Berry with individual distributions of “prescriptions” for Schedule II controlled substances that she wrote out for herself in the name of an unknowing third party using Adolph Harper’s prescription pad.
Counts 131 through 134 charge Adolph Harper with health care fraud. Specifically, these counts charge him with executing 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.
“The charges describe a defendant who is simply a drug dealer with a stethoscope who happens to work 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 families and lives.”
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.”
“DEA is pleased to acknowledge the indictment of Dr. Adolph Harper,” said Geno Corley, Resident Agent in Charge of the Drug Enforcement Administration’s Cleveland office. “This case was initiated by the Akron Police Department and investigated by FBI, Health and Human Services with assistance from the DEA Cleveland Resident Office, Ohio State Board of Pharmacy and the State of Ohio Medical Board. This arrest of Dr. Harper and his co-conspirators is another important step forward in the fight against the improper prescribing of dangerous and addictive prescription drugs.”
“This is great example of how state and federal collaboration can work to combat prescription drug abuse,” said Kyle Parker, executive director of the Ohio State Pharmacy Board.
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.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
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.
Copley Man Pleads Guilty to Defrauding Investors Out of $1.8 MillionRead the Press Release
A Copley man pleaded guilty to a 14-count criminal information for operating a fraudulent investment scheme which caused investors to lose approximately $1.8 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Anthony Davian, 34, pleaded guilty to one count of securities fraud, two counts of mail fraud, four counts of wire fraud, and seven counts of money laundering. He is scheduled to be sentenced July 2.
“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.”
The information charges that between July 2008 and July 2013, Davian used his hedge fund, Davian Capital Advisers, LLC, to promote and sell securities to at least 20 investors across several states, resulting in $1.8 million in overall investor loss.
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 the information.
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 the information.
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.
Former Owner of Youngstown Company Pleads Guilty to Discharging Brine into the Mahoning RiverRead the Press Release
The former owner of a Youngstown-based company pleaded guilty to violating the Clean Water Act by discharging brine into a tributary of the Mahoning River, said Steven M. Dettelbach, the United States Attorney for the Northern District of Ohio.
Benedict W. Lupo, 63, of Poland, Ohio, is scheduled to be sentenced on June 16.
The conduct took place between Nov. 1, 2012 and Jan. 31, 2013, according to court documents.
“Those who make it their business to harvest from under Ohio its great natural resources, have a responsibility to the men, women and children who drink its water, live on its land and breathe its air. And they have a duty to follow the law," Dettelbach said. "The defendant in this case has admitted ordering others to break the law, and he must be held accountable.”
“Ben Lupo put his own business interests ahead of the health and safety of our citizens, natural resources and wildlife by repeatedly releasing or ordering the release of his company’s brine waste into the Mahoning River. He will now be held accountable for this terrible crime,” said Ohio Attorney General Mike DeWine.
“As natural gas exploration continues, it must be done in a way that ensures the drilling byproducts are treated and disposed of safely and legally,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “This case demonstrates that if companies and their owners skirt environmental laws, EPA will hold them accountable.”
“This incident is one of a small percentage of egregious environmental violations we see at Ohio EPA that must be prosecuted criminally,” Ohio EPA Director Craig Butler said. “This general disregard for the law will not be tolerated in Ohio and we will work with our partners at the local, state and federal agencies to make sure the responsible parties are held accountable. We especially appreciate the United States Department of Justice quickly assisting Ohio in this case and applying its more stringent laws regarding Clean Water Act violations. ”
According to the indictment and related court documents:
Hardrock Excavating LLC was owned by Lupo and located at 2761 Salt Springs Road in Youngstown. The company provided services to the oil and gas industry in Ohio and Pennsylvania, including the storage of brine and oil-based drilling mud used in hydrofracturing, or fracking.
There were approximately 58 mobile storage tanks at the facility and each holds approximately 20,000 gallons.
Lupo, who owns Hardrock, directed an employee to empty some of the waste liquid stored at the facility into a nearby wastewater drain on or about Nov. 1, 2012. Lupo directed the employee to conduct this activity only after no one else was at the facility and only after dark.
An employee, at the direction of Lupo, emptied some of the waste liquid at the facility into the nearby stormwater drain using a hose on numerous occasions over the next several months. The drain flowed into a tributary of the Mahoning River and ultimately into the Mahoning River.
The last time an employee emptied some of the waste liquid into the drain was on or about Jan. 31, 2013. The waste liquid that night included brine and drill cuttings. A sample of the discharge taken that night was black in color and a subsequent analysis showed the presence of several hazardous pollutants, including benzene and toluene.
This case is being prosecuted by Special Assistant U.S. Attorney Brad Beeson following an investigation by the Ohio EPA, Ohio Department of Natural Resources, U.S. EPA, the Ohio Bureau of Criminal Investigation, the Youngstown Department of Public Works and the Youngstown Fire Department.
The statutory maximum for violating the Clean Water Act is for individuals is three years in prison, one year of supervised release and a fine of $50,000 per day of violation or $250,000, whichever is larger.
Michael Guesman, 35, of Cortland, Ohio, previously pleaded guilty to his role in the crime and was sentenced last week to three years of probation and 300 hours of community service. The criminal case against Hardrock Excavating LLC remains pending.The case remains under investigation.
Toledo Woman Charged with Filing False ReportRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a criminal information was filed against Rene Opre, age 55, of Toledo, Ohio.
The charges relate to filing a false report on behalf of Workers United SEIU, Local Union 323 with the U.S. Department of Labor.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Office of Labor-Management Standards, U.S. Department of Labor, Cleveland, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sheffield Lake Man Charged with Conspiracy to Commit Mail FraudRead the Press Release
A Sheffield Lake man was charged with conspiracy to commit mail fraud for his role in defrauding the Cleveland Clinic out of more than $150,000, 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.
Randy Breininger, 43, was the Institute Administrator within the Anesthesiology Institute at the Cleveland Clinic. Richard Zukowski owned and operated an independent recruiting firm called the David Anthony Group, Inc. or DAG. The company maintained a contract with the Cleveland Clinic from 2008 through January 2013 to help locate and recruit certified registered nurse anesthetists to work within the Clinic’s Anesthesiology Institute, according to the criminal information.
The Cleveland Clinic paid DAG commissions, equal to a percentage of the first year annual salary, for each successful certified registered nurse anesthetist recruited by DAG, according to the information.
Breininger submitted invoices related to the commissions for people purportedly recruited by DAG. An individual identified as J.T. was the Institute Finance Director for the Anesthesiology Institute at the Cleveland Clinic. J.T. approved invoices related to commissions for individuals purportedly recruited by DAG, according to the information.
Breininger and Zukowski conspired from about June 15, 2010 through around January 2013, according to the information.
Breininger provided names, dates of invoice and DAG commission figures to Zukowski for 10 individuals. Breininger instructed Zukowski to submit a recruiting invoice through DAG for each individual whose name Breininger provided. At no point did Zukowski or DAG recruit the 10 individuals for employment at the Cleveland Clinic, according to the information.
Breininger requested J.T. authorize the 10 invoices submitted by Zukowski. J.T. authorized the payments and routed the approved invoices for payment at the Cleveland Clinic. The Cleveland Clinic mailed Zukowski eight checks which totaled more than $150,00, according to the information.
Breininger then asked Zukowski to return half the money Zukowski received as payment for the invoices. In order to fulfill his tax obligations for the eight checks, Zukowski transferred only about one-third of the proceeds to Breininger. Zukowski withdrew approximately $60,000 in cash, in increments between $1,500 and $2,000, and hand delivered the cash to Breininger in envelopes, according to the information.
Zukowski pleaded guilty last year to one count of conspiracy to commit mail fraud and is scheduled to be sentenced in May.
This case is being prosecuted by Special Assistant U.S. Attorney Derek Kleinmann following an investigation by 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 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.
Ohio Hospital Pays $8.5 Million to Settle False Claims Act CaseRead the Press Release
Memorial Hospital (Memorial), an Ohio nonprofit corporation that operates an acute care hospital in Fremont, Ohio, has agreed to pay $8.5 million to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute by engaging in improper financial relationships with referring physicians, the Justice Department announced today.
“Improper financial relationships between health care providers and their referral sources can undermine physicians' judgment about patients' true health care needs and drive up health care costs for everyone,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. "The Justice Department is firmly committed to recovering the taxpayer dollars lost due to these arrangements and making sure that all health care providers follow the rules.”
The Anti-Kickback Statute and the Stark Statute restrict the financial relationships that hospitals may have with doctors who refer patients to them. The settlement announced today involved allegations that financial relationships that Memorial had with two physicians – a joint venture between Memorial and a pain management physician and an arrangement under which an ophthalmologist purchased intraocular lenses and then resold them to Memorial at inflated prices - violated statutory requirements. These issues were disclosed to the government by Memorial.
"Physician referrals should be made exclusively based on what's best for the patient, not on financial relationships," said U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach. "We hope that this settlement will once again help drive that message home."
The improper referrals at issue in this matter included Medicaid patients. Medicaid is funded jointly by the states and the federal government. The State of Ohio, which paid for some of the Medicaid claims at issue, will receive $600,383 of the settlement amount.
“The price of such arrangements can be very costly to the nation’s health care system, taxpayers and provider organizations,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “So, we are pleased that Memorial stepped forward to disclose these improper financial relationships and is working to avoid future occurrences.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was handled by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Northern District of Ohio and the Department of Health and Human Services Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Holland, Ohio, Man Indicted for $500,000 FraudRead the Press Release
A criminal indictment was returned this week charging Mark O. Wittenmyer, age 54, of Holland, Ohio, with one count of conspiracy to commit wire fraud, wire fraud, and five counts of money laundering, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Wittenmyer fraudulently obtained a $500,000 consultant’s fee by representing that he could deliver several interest-only government bonds to a group of investors.
Wittenmyer also falsely alleged that he could recruit institutional buyers for the bonds that would pay the group of investors a substantial premium at the conclusion of the transaction. The investor group was falsely advised by Wittenmyer that he had successfully delivered the bonds, and therefore Wittenmyer was entitled to a $1 million consultant’s fee, according to the indictment.
When a representative of the investor group learned that the bonds had not been delivered, Wittenmyer threatened to file a lien against the bonds to prevent their sale. The investor group then paid $500,000, in a wire transfer on November 8, 2013, to induce Wittenmyer not to file a lien. Wittenmyer directed the funds to an account at PNC Bank that was controlled by an associate, and from that account, Wittenmyer and his associate spent the funds, according to the indictmet.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorneys James V. Moroney and Gene Crawford.
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.
Ashland Man Sentenced to Five Years in Prison for Labor TraffickingRead the Press Release
An Ashland man was sentenced to five years in prison for his role in a holding woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor, law enforcement officials said today.
“The conduct laid out in this case is almost incomprehensible,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “We will continue to prosecute human trafficking cases in all their various forms.”
"The manner in which this young lady and her small child were treated during two years of involuntary servitude is beyond disturbing," said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland office. "The FBI hopes that the victims in this investigation can continue to heal and lead their own lives now that Daniel Brown and the others have been brought to justice."
Daniel J. Brown, 34, previously pleaded guilty to one count of conspiracy. He admitted that he conspired with Jordie L. Callahan, Jessica L. Hunt and Dezerah L. Silsby from 2010 through 2012 to establish and continue a pattern of domination and control over their victims, identified only as S.E. and B.E.
Together, they used a combination of violence, threats, sexual assaults, humiliation, deprivation and monitoring to establish and continue a pattern of domination and control over S.E. and B.E., according to court documents.
Their tactics included beating S.E., threats of beatings to S.E. and B.E., taunting and threatening the victims with pit bulls and snakes, causing the victims to sleep in unsafe and unsanitary conditions, restricting B.E. and S.E.’s access to the bathroom, preventing them from eating regular and suitable meals and forcing S.E. to eat dog food and crawl on the floor while wearing a dog collar, according to trial testimony and court documents.
All four people have been found guilty of crimes related to the case. Silsby is scheduled to be sentenced later this month while Callahan and Hunt are scheduled to be sentenced in July.
The case is being handled by Assistant U.S. Attorneys Chelsea Rice and Thomas E. Getz following an investigation by the FBI and Ashland Police Department, with assistance from the Ashland County Prosecutor’s Office.
Former Cleveland Job Corps Center Director Faces Tax ChargesRead the Press Release
A three-count indictment was filed charging the former director of the Cleveland Job Corps Center with withholding more than $872,000 in federal taxes from employees but never paying the money over to the Internal Revenue Service, law enforcement officials said.
Clark V. Hayes, 53, of Richfield, Ohio, was the owner of Applied Technology Systems, Inc. or ATSI, in Cleveland. The U.S. Department of Labor contracted with ATSI to operate the Cleveland and Jacksonville Job Corps Centers, according to the indictment.
“This defendant was hired to make sure struggling workers learned new job skills, but instead used it as an opportunity defraud his workers and the government,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“Business owners have an inescapable obligation to withhold income taxes for employees and remit those taxes to the IRS,” said Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati field office. “The failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation vigorously pursues those who violate employment tax laws.”
Under the terms of the agreement, ATSI staffed and maintained the centers, subject to reimbursement by the Department of Labor for their costs based on a budget. The reimbursable costs included the wages ATSI paid to the centers’ employees, including amounts to be withheld and paid over to the IRS, according to the indictment.
The Labor Department paid ATSI more than $15.5 million between from on or about July 1, 2010, through August 16, 2011, according to the indictment.
For the quarter ending Sept. 30, 2010, Hayes withheld but did not pay over $138,208. For the quarter ending Dec. 31, 2010, Hayes withheld but did not pay over $483,495. For the quarter ending March 31, 2011, Hayes withheld but did not pay over $250,307, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorneys Vasile Katsaros and Antoinette T. Bacon following an investigation by the Internal Revenue Service – Criminal Investigations and the Department of Labor -- Office of Inspector General.
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.
Niles Man Faces Drug ChargesRead 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 Clint A. Hood, 49, of Niles, Ohio, with growing marijuana, and possessing marijuana with the intent to distribute.
The indictment alleges that on October 2, 2012, Hood grew and possessed more than 100 marijuana plants.
The case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould, following investigation by agents of the Drug Enforcement Administration.
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.
Michigan Man Indicted for Assaulting Federal EmployeeRead the Press Release
A federal grand jury in the Eastern District of Michigan today returned an indictment charging Ronnie Edward Duke, age 46, of Fenton, Michigan, with assaulting, resisting, or impeding
certain officers or employees, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.The indictment alleges that on February 24, 2014, in the Eastern District of Michigan, Duke forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with an Assistant United States Attorney in the Eastern District of Michigan.
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.
Because of the recusal of the U.S. Attorney’s Office for the Eastern District of Michigan, this investigation is being handled by the U.S. Attorney’s Office for the Northern District of Ohio. The case is being prosecuted by Assistant United States Attorneys Matthew B. Kall and Thomas P. Weldon, following investigation by the Federal Bureau of Investigation and U.S. Marshals Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Mexican Native Charged with Illegal ReentryRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced an Indictment was filed against Alejandro Morillo-Bedolla, age 36, of Mexico.
The indictment charges Morillo-Bedolla with unlawful reentry with an aggravated felony into the United States on March 29, 2010 and February 7, 2014.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Department of Homeland Security, Immigration and Customs Enforcement, Cleveland, Ohio. The case is being handled by Assistant United States Attorney Ava R. Dustin.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four Indicted for Operating Food Stamp Fraud from Cleveland StoreRead the Press Release
Four men from Northeast Ohio were charged in a five-count indictment with engaging in a conspiracy to defraud the food stamp and Women, Infants and Children programs from a store on Detroit Avenue in Cleveland, law enforcement officials said.
Indicted are: Bashir Mohamed, age 31, of Cleveland; Yusuf Maalin, 45, of Cleveland; Ali Shire Ahmed, 54, of North Olmsted, Ohio; and Farah Hasan Warsame, 27, of Cleveland.
The indictment alleges that Mohamed, Maalin, Ahmed, and Warsame conspired to illegally allow customers to redeem food stamp and WIC benefits at Bashir Market, 8401 Detroit Avenue, in exchange for cash, ineligible items, and credit towards overseas wire transfers.
Mohamed, Maalin, and Warsame allegedly worked at the market and redeemed the food stamp and WIC benefits for the cash, unauthorized items, or credit towards overseas funds transfers. The credit for overseas funds transfers was tracked on a ledger kept at the market, according to the indictment.
Mohamed or Maalin would then provide Ahmed with cash or a check that Ahmed would take to Columbus, Ohio, to send overseas by wire transfer. The indictment alleges that the conspiracy involved the attempted redemption of approximately $670,612 in food stamp and WIC benefits, according to the indictment.
The conspiracy took place between 2008 and last year, according to the indictment.
In addition to the conspiracy charge, Mohamed, Maalin, Ahmed, and Warsame are also charged with counts of food stamp fraud, unlawful food stamp redemptions, and WIC fraud. Ahmed is charged with one count of money laundering.
The indictment results from an investigation conducted by the United States Department of Agriculture, Office of the Inspector General; the Federal Bureau of Investigation; and Department of Homeland Security, Homeland Security Investigations.
The case is being handled by Assistant United States Attorneys Matthew W. Shepherd and M. Kendra Klump.
If convicted, the defendants’ sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four from Buffalo Indicted for Buying Gift Cards with Fraudulent Credit CardsRead the Press Release
Four people from Buffalo, New York, were indicted on charges that they used fraudulent credit cards to buy $19,500 worth of gift cards from a Walmart and Rite Aid in Cleveland, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are Ricky Butler, 37, Cherise Luper, age 22, Brianna Davis, age 20, and Larry Cross, age 22. They face charges of access device fraud, aggravated identity theft, unlawful possession of a document-making implement, and conspiracy to commit the same.
The indictment alleges that the four individuals fraudulently obtained credit cards that they later used to purchase gift cards valued at approximately $19,500 from the Walmart stores at 3400 Steelyard Drive and 10000 Brookpark Road and the RiteAid store at 10502 St. Clair Avenue, all in Cleveland, as well as two stores in New York.
It further alleges that the defendants acquired and produced counterfeit identification cards that they used in the identity-theft and access-device scheme.
In all, they obtained 39 gift cards, each worth $500, according to the indictment.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense, and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys M. Kendra Klump, Robert W. Kern, and James L. Morford following an investigation by the United States Secret Service and the Bedford 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.
Delaware Man Charged with Passing Counterfeit $100 BillsRead 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 William Powell, 23, of Wilmington, Delaware, with passing counterfeit United States currency.
The indictment alleges that Powell passed counterfeit $100 Federal Reserve Notes.
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. Gregory C. Sasse, following investigation by agents of the United States Secret Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Ashland Couple Convicted of Labor Trafficking ConspiracyRead the Press Release
A federal jury convicted an Ashland couple of engaging in a labor trafficking conspiracy and other crimes related to them holding woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor for them, 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.
Jordie L. Callahan, 27 and Jessica L. Hunt, 32, were convicted following a three-week trial before U.S. District Judge Benita Y. Pearson. Callahan and Hunt were both convicted on one count each of conspiracy to violate laws; forced labor and acquiring a controlled substance by deception.
They are scheduled to be sentenced in July.
“These defendants inflicted unspeakable cruelty upon this mother and her child,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “This case provides another stark reminder that human trafficking takes place all around us, and that we need to be better neighbors to one another.”
“We are pleased with the guilty verdict delivered today for the incomprehensible treatment and involuntary servitude of another human being and her small child,” Anthony said. “The FBI will continue to partner with other law enforcement agencies to aggressively investigate and bring to justice those individuals that force others into unlawful labor or sex practices.”
Dezerah L. McGuire (formerly Silsby), 32, and Daniel J. Brown, 34, both of Ashland, previously pleaded guilty to crimes related to the conspiracy. Both are scheduled to be sentenced later this month.
Callahan and Hunt used a combination of violence, threats, sexual assaults, humiliation, deprivation and monitoring to establish and continue a pattern of domination and control over their victims, identified only as S.E. and B.E., according to the court documents and trial testimony.
Their tactics included beating S.E., threats of beatings to S.E. and B.E., taunting and threatening the victims with pit bulls and snakes, causing the victims to sleep in unsafe and unsanitary conditions, restricting B.E. and S.E.’s access to the bathroom, preventing them from eating regular and suitable meals and forcing S.E. to eat dog food and crawl on the floor while wearing a dog collar, according to the court documents and trial testimony.
According to court documents and trail testimony:
Callahan pointed a firearm at S.E.’s head and threatened to kill her if she did not perform the labor and services he and other conspirators commanded. Callahan also forced S.E. on multiple occasions to engage in sex acts with him and threatened that he and Hunt would kill S.E. if she told anyone about the forced sexual acts.
The conspiracy between Callahan, Hunt, McGuire and Brown took place between August 2010 and October 2012. The object of the conspiracy included holding S.E. in a condition of forced labor and involuntary servitude and intentionally causing painful injuries to S.E. so they could use the narcotic pain medications she was prescribed to satisfy their personal drug craving.
Callahan and Hunt recruited S.E. and B.E. to live with them in their two-bedroom apartment in Ashland, knowing that S.E. has a cognitive disability and that S.E. and B.E. received monthly public assistance payments.
In August 2011, McGuire, at the direction of Callahan and Hunt, smashed S.E.’s hand with a rock with such force that S.E. needed to go to the hospital emergency room. Callahan, Hunt and McGuire then forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated at the emergency room.
In December 2011, Callahan and Hunt injured S.E.’s back with such force that she needed medical treatment. Again, Callahan and Hunt forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated.
In March 2012, Callahan kicked S.E. in the hip with such force that she needed medical treatment. Callahan and Hunt forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated.
On multiple occasions between August 2010 and October 2012, Callahan and Hunt threatened S.E. and B.E. with serious physical harm, including death, if S.E. did not clean up the apartment, care for their numerous pit bull dogs, snakes and other reptiles, purchase items at the store and perform other labor and services ordered by the conspirators.
Callahan and Hunt used a video camera to monitor S.E. and B.E.’s activities and conversations in the apartment. They often forced S.E. to walk to the store to buy groceries, cigarettes, dog food and other items for Callahan, Hunt and Hunt’s four sons and to pay for these purchases with her public assistance card. They allotted S.E. only a brief time period to complete the shopping and warned her she was not allowed to speak with anyone while she was out. They frequently required B.E. to remain with them at the apartment while S.E. was out and threatened physical harm to B.E. and S.E. if S.E. broke any of their rules.
Callahan and Hunt also threatened to contact Ashland County Job and Family Services and have B.E. taken away if S.E. purchased any items at the store other than those they ordered or if she told anyone about their unlawful conduct.
In June 2011, after S.E. and B.E. had attempted to flee the apartment, Callahan and Hunt ordered Brown and McGuire to find S.E. and B.E. and bring them back to the apartment. Brown and McGuire lured S.E. and B.E. into their vehicle by promising to take them to Dairy Queen, only to deposit them afterwards back at the apartment.
On multiple occasions, Callahan and Brown locked S.E. and B.E. in a room with a window that was nailed shut and a door that had been locked from the outside.
In October 2011, Callahan and Hunt forced S.E. to hit her child while they recorded a video, and threatened to inflict much greater physical harm on both S.E. and B.E. if S.E. did not comply.
One month later, Callahan and Hunt again forced S.E. to strike B.E. while they captured a video recording of the staged incident on Callahan’s cell phone. Callahan and Hunt repeatedly threatened have B.E. taken away by showing the videos to authorities in order to secure S.E.’s compliance to the conspirators’ commands.
The case was prosecuted by Assistant U.S. Attorneys Chelsea Rice and Thomas E. Getz following an investigation by the FBI and Ashland Police Department, with assistance from the Ashland County Prosecutor’s Office.
Postal Manager Charged with Taking Bribes in Exchange for Postal ContractsRead the Press Release
The manager of the U.S. Postal Service’s Vehicle Maintenance Facility in Cleveland was charged with taking cash bribes in exchange for awarding business and contracts from the Postal Service, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Monica Weyler, Special Agent in Charge of the U.S. Postal Service’s Office of Inspector General Eastern Area Field Office.
Kevin Hood, 45, of Richmond Heights, was arrested Thursday and charged with wire fraud and honest services wire fraud.
“Some defendants appear to still have not gotten the message that accepting bribes has no place in Northeast Ohio,” Dettelbach said. “We will continue to work to stamp out public corruption in all its forms.”
“This crime is particularly egregious considering the defendant was promoted to this position because the former manager was convicted on similar charges,” Weyler said.
Hood worked for the Postal Service since 1998 and most recently served as the manager of the Vehicle Maintenance Facility at 1801 Broadway Avenue in Cleveland. In that job, Hood had the ability to award and monitor contracts on behalf of the Postal Service.
The owner of a Cleveland company that has contracts with the Postal Service said Hood approached him for money in order to get work and contracts from the Postal Service. In late 2011, the business owner paid Hood in cash and believed he had to continue to pay Hood to receive work, according to a criminal complaint filed in the case.
The owner estimated he paid between $15,000 and $17,000 to Hood to date. He also estimated he provided up to $8,000 in free labor on Hood's personal vehicles, according to the complaint.
The owner stated Hood told him this was part of the deal in the owner receiving Postal Service work, according to the complaint.
On March 6, the owner paid Hood $4,500 in $100 bills. Hood placed the envelope containing the bills in his left boot. The transaction was monitored and recorded by USPS Office of Inspector General special agents, according to the complaint.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Miranda Dugi and Antoinette T. Bacon following an investigation by special agents of the U.S. Postal Service’s Office of Inspector General.
Lucas Man Faces Child Pornography ChargesRead the Press Release
Robert A. Anderson, 68, of Lucas, Ohio, was charged with producing, receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about January 1, 2003, through on or about April 26, 2011, Anderson did use, persuade, induce, entice and coerce two minors to engage in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced or transmitted using materials that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer.
Anderson is further charged with knowingly receiving and distributing, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct, possessing a SanDisk 64GB thumb drive and an HP Pavilion desktop computer that contained child pornography on January 21, 2014, and knowingly attempting to destroy, damage, waste, dispose of, transfer, or otherwise take any action, involving three SanDisk thumb drives, for the purpose of preventing or impairing the government’s lawful authority to take such property into its custody or control during the execution of a federal search warrant.
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 Department of Homeland Security Investigations, Cleveland Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Lakewood Man Indicted for $3.7 Million Credit Union FraudRead the Press Release
A Lakewood man was indicted on three counts for his role in a conspiracy to defraud a now-failed credit union out of $3.7 million, some of which he used to buy and sell a property in downtown Cleveland, law enforcement officials said.
Sato Satka, 65, was indicted on one count each of conspiracy, bank fraud and bank bribery.
Satka conspired with others, including Anthony Raguz, the former Chief Operating Officer of the St. Paul Croatian Federal Credit Union (SPCFCU), to defraud the credit union. Satka paid bribes and kickbacks to Raguz for using his position at the credit union to approve numerous loans to Satka, and the entities he controlled and associates, according to the indictment.
From 1999 through 2004, Satka, his family members and businesses he controlled received more than $4.4 million in loan proceeds from SPCFCU, but little or no legitimate monthly payments were made to the credit union. As a result, the loans were in default, but in order to avoid detection from the credit union board, Raguz ordered “resets” to make it appear the loans were not in default, according to the indictment.
Satka controlled several enterprises, including F&S Satka Enterprises LLC, Sako Satka Parking West 3, Satka Parking Summer, Satka Parking Bolivar, Satka Parking Prospect and Titanic II, according to the indictment.
In October 2003, he purchased a commercial real estate property at 1350 West 3rd Street, Cleveland, for $460,000, according to the indictment.
J.P. is a person known to the Grand Jury but not charged herein. He purportedly controlled several non-operating entities, including: Metropolitan Restaurant Systems, Buckeye Cartage, Play Magazine, Celebrity Limousine, Victor/John Model & Talent, Jay Kay Records, and others, according to the indictment.
Around November 2004, Satka recruited J.P. to apply for multiple fraudulent loans from SPCFCU. On Nov. 5, 2004, approximately 13 months after Satka purchased the West 3rd Street property for $460,000, he sold it to J.P.’s company, Metropolitan Restaurant Systems, for $3 million, according to the indictment.
To induce Raguz to approve J.P.’s loan in November 2004, Satka handed Raguz a brown paper bag filled with $90,000 in cash and stated the money was for the approval of J.P.’s loan so that those proceeds could be used to settle Satka’s loan obligations to SPCFCU, according to the indictment.
Raguz proceeded to issue approximately $3.7 million in loans to 10 entities controlled by J.P., of which approximately $3.6 million was used to pay off loan balances on accounts held by Satka, his relatives or businesses he controlled. J.P. made no legitimate attempts to repay any of the loans and SPCFCU incurred a loss of $3.7 million, according to the indictment.
SPCFCU, located in Eastlake, was placed into conservatorship by the National Credit Union Administration on April 23, 2010. One week later, the NCUA liquidated SPFCFU and discontinued its operations after determining the credit union was insolvent. At that time, SPCFCU served about 5,400 members and was believed to have assets of approximated $239 million.
About two dozen people, including Raguz, have been convicted of crimes for conduct that led to the credit union’s collapse.
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.
This case is being prosecuted by Assistant U.S. Attorney Bridget M. Brennan following an investigation by the Cleveland office of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.
Copley Man Charged with Defrauding Investors Out of $1.8 MillionRead the Press Release
A 14-count criminal information was filed charging a Copley man with operating a fraudulent investment scheme which caused investors to lose approximately $1.8 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Anthony Davian, 34, was charged with one count of securities fraud, two counts of mail fraud, four counts of wire fraud, and seven counts of money laundering.
“This defendant took advantage of his clients’ trust to steal from them and live the high life,” Dettelbach said. “We will continue to aggressively pursue cases in which investors are cheated out of their savings.”
The information charges that between July 2008 and July 2013, Davian used his hedge fund, Davian Capital Advisers, LLC, to promote and sell securities to at least 20 investors across several states, resulting in $1.8 million in overall investor loss.
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 the information.
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 the information.
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.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Ravenna Man Faces Firearms and Drug ChargesRead the Press Release
A federal grand jury returned a two-count indictment charging Benny Lee Freeman, 35, of Ravenna, Ohio, with being a felon in possession of firearms and ammunition, and with possession with the intent to distribute marijuana, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Count 1 of the indictment charges that on or about December 23, 2013, Freeman was in possession of a Walther, model P22, .22 caliber pistol, a Ruger, model 77/22, .22 caliber rifle, and ammunition, after being previously convicted of Trafficking in LSD, in the Geauga County Court of Common Pleas, and Possession of Marijuana for Sale, in the Tehama County Superior Court in the State of California.
Count 2 of the indictment charges that on or about December 23, 2013, Freeman possessed with the intent to distribute marijuana.
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 Portage County Drug Task Force. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment in 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.
Maple Heights Resident Charged with Counterfeiting CurrencyRead the Press Release
A grand jury returned a one-count indictment charging Leevern Coleman, 43, with manufacturing counterfeit United States currency, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Coleman manufactured counterfeit $10 Federal Reserve notes, counterfeit $20 Federal Reserve notes, and counterfeit $50 Federal Reserve notes. Forfeiture of equipment used to manufacture the counterfeit United States currency is also sought.
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. Gregory C. Sasse, following investigation by agents of the United States Secret Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.