Northern District of Ohio
Press releases recorded for this federal judicial district.
Lowellville Man Indicted on Child Pornography ChargesRead the Press Release
A federal grand jury returned a two-count indictment charging Paul C. Schumacher, Jr., age 50, of Lowellville, Ohio, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct and possessing child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about June 19, 2013, Schumacher knowingly received and distributed computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. Additionally, the indictment charges that on July 30, 2013, Schumacher possessed a computer containing child pornography.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed that 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 United States Secret Service and the Ohio Internet Crimes Against Children Task Force.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sandusky Man Sentenced to Three Months Custody, Ordered to Pay $489,007 for False Distress Calls That Caused Lake Erie SearchRead the Press Release
A Sandusky man was sentenced to three months in federal custody and ordered to pay $489,007 in restitution after for making a false distress call that caused a massive search on Lake Erie, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Danik Shiv Kumar, 21, pleaded guilty earlier this year to one count of making a false distress calls.
On the evening of March 14, 2012, Kumar took off in a Cessna single-engine plane for a solo flight from Burke Lakefront Airport to Bowling Green State University. About 30 minutes into his flight, Kumar called the Cleveland-Hopkins Airport control tower and reported seeing a vessel “launching up flares,” according to court documents.Moments later, when asked for additional details about the vessel in distress, Kumar responded “a 25-foot fishing vessel I guess you could say. Everyone had a life jacket with a strobe light. I counted four of them,” according to court documents.
The information was relayed to the Coast Guard, which immediately dispatched two vessels. The crew of the Coast Guard Cutter Thunder Bay searched for 21 hours, while multiple boat crews from Coast Guard Station Lorain, Ohio, searched for about 16 hours. Rescue helicopter crews from Coast Guard Air Station Detroit joined in the search, as did a Canadian Coast Guard airplane crew from Joint Rescue Coordination Centre Trenton, Ontario, according to court documents.
More than a month later, Kumar admitted that he never saw flares or a boat in distress and there were never any people in need of help. He also admitted that when he landed at Bowling Green, he knew the USCG was searching with full force but chose not to report the truth, according to court documents.
The $489,007 restitution amount represents the cost of the search. The amount is comprised of the $277,257 expended by U.S. agencies and the $211,750 cost to the Canadian government. Kumar was also sentenced to 250 hours of community service and three years of supervised release.“I am concerned that there are people who are willing to risk the lives of other boaters who might be in legitimate need of rescue or assistance, as well as needlessly endanger response crews, by knowingly making a false distress calls,” said Capt. Eric Johnson, chief of the Coast Guard 9th District Incident Management Branch.
This case is being prosecuted by Assistant United States Attorney Michelle Baeppler and Coast Guard Lt. Michael Petta, who was designated Special Assistant United States Attorney. The case was investigated by the United States Coast Guard.
Toledo Woman Charged with Human TraffickingRead the Press Release
A criminal information was filed today charging Toledo woman with interstate sex trafficking involving a minor, 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.
Amber Ginter, aka Amber Mendoza, age 35, is accused of transporting a minor from Ohio to Michigan in December 2009 with the purpose that the minor engage in commercial sexual activity, according to the information.
“This case is another stark reminder that human trafficking exists in our district and in our collective back yard,” Dettelbach said. “It’s a reminder that we need to be better neighbors and ask questions if something looks suspicious.”
Anthony said: “The sexual human trafficking of minors for profit is an injustice that will not be tolerated. The FBI continues to aggressively pursue and bring to justice those who violate the rights of our most vulnerable of the community.”
This case is being prosecuted by Assistant U.S. Attorney James V. Moroney, following an investigation by the Toledo Resident Agency of the FBI and the Northwest Ohio Violent Crimes Against Children Task Force. The task force is made up of members of the FBI, Toledo Police Department, Perrysburg Township Police Department, Lima Police Department, Oregon Police Department, Fulton County Sheriff’s Office, Ottawa County Sheriff’s Office, Ohio State Highway Patrol and the Bureau of Criminal 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.Former Lorain County Corrections Officer Charged for Assaulting an InmateRead the Press Release
A former Lorain County corrections officer faces criminal charges for striking a jail inmate multiple times, said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division, 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.
Marlon Tayor, 47, of Vermilion, was charged with one count of deprivation of rights under color of law.
“The vast majority of law enforcement officials do a great job,” Dettelbach said. “When someone abuses the power and privileges of their office, however, they can and will be held accountable.”
The criminal information alleges that on July 29, 2012, Taylor, while working as a corrections officer in the Lorain County Jail, assaulted an inmate identified as Victim 1 by striking him repeatedly, causing bodily injury and depriving Victim 1 the right to be free from cruel and unusual punishment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case. In all cases the sentence will not exceed the statutory maximum – in this case, 10 years in prison and $250,000 fine -- and in most cases it will be less than the maximum.
This investigation has been conducted by the FBI’s Cleveland Office. Assistant U.S. Attorneys Antoinette T. Bacon and Lauren Bell and Trial Attorney Betsy Biffl will prosecute the case.
A charge is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Twelve from Northeast Ohio Indicted in Cocaine ConspiracyRead the Press Release
Twelve men from Northeast Ohio were indicted on charges of conspiracy to possess with intent to distribute cocaine and related charges, 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.
Named in the 27-count indictment are as follows (they live in Cleveland unless otherwise noted): Troy Williams, 43, of Willoughby Hills; Jason Phillips, 34; Joseph Phillips, 39, of Brooklyn; Anthony Evans, 45; Louis Roberto, 33; Relan Derby, 39, of Euclid; Jack Houchens Jr., 53; Jose Antonio Gonzales II, 20; Vaughn Moore, 52; Michael Bergant, 52, of Mentor; David Bergant, 56, and Lamont Thomas, 41.
Jason and Joseph Phillips obtained multi-kilogram shipments of cocaine from Derby and Williams. All the men charged then arranged for or assisted in the redistribution of the cocaine in the Northern District of Ohio and elsewhere, according to the indictment.The conspiracy took place between 2010 and the present, 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.
These cases are being prosecuted by Assistant U.S. Attorney Robert F. Corts following an investigation by the Northern Ohio Law Enforcement Task Force, a multi-agency task force comprised of investigators from the FBI, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Immigration and Customs Enforcement, U.S. Coast Guard Investigative Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Strongsville Police Department, Westlake Police Department and Shaker Heights Police Department. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives. The HIDTA Program supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug-trafficking in Ohio.
An indictment is simply a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Indicted for $780,000 Food Stamp Fraud from Store in ClevelandRead the Press Release
Three men were indicted today on charges that they engaged in a decade-long conspiracy to defraud the food stamp and Women, Infants and Children programs out of more than $780,000 by trading the vouchers for cash and restricted items such as beer and cigarettes from a store in Cleveland, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Ahmad (“Tony”) Damra, 31, of Macedonia, his brother, Mahmoud (“Moe”) Damrah, 26, of Cleveland, and Mohammad D. Mohammad, 41, of Strongsville, were each indicted on one count of conspiracy to commit food stamp fraud, three counts of food stamp fraud and unlawful redemption of food stamps, and one count of Women, Infants and Children Program (WIC) fraud.
“The food stamp program has provided nutritious food to thousands of hungry families over the years,” Dettelbach said. “We will continue to work to recover money stolen from the program and eradicate waste, fraud and abuse of government programs.”
The indictment charges that between 2002 and 2011, the defendants and others conspired to commit over $780,000 in food stamp and WIC program fraud through the use of the East 143rd Food Market, located at 3249 East 143rd Street in Cleveland.
Mohammad owned, operated and managed the store. He obtained a food stamp license in 1997, which, except for a two-year period beginning in September 1998, remained in effect through 2004, according to the indictment.
In 2005, he obtained a food stamp license for the market using the business Rashiqa, Inc., which listed Mohammad’s mother as president. Mohammad placed the business in the name of another person to conceal his ownership because his prior conviction for aggravated arson precluded his participation in the food stamp program, according to the indictment.
Also in 2005, Mohammad obtained a WIC program authorization under Rashiqa, Inc., according to the indictment.
Ahmad Damra started working at the market in 2002, first as a clerk and then as manager. Mahmoud Damrah started working as a clerk at the store in 2008, according to the indictment.
The investigation revealed that the defendants and others used their business to exchange customer food stamps and WIC coupons for cash and other unauthorized items, including beer and cigarettes. The men also purchased customer food stamp cards and used them at other grocery locations to purchase inventory for the market and for their own personal use, according to the indictment.
The indictment was presented to the Grand Jury by Assistant U.S. Attorneys Christos N. Georgalis, Vasile Katsaros, and James Morford after an investigation by agents of the United States Department of Agriculture, Office of Inspector General-Investigations.
If convicted, defendants’ sentences will be determined by the Court after a review of factors unique to the case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum 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.
Narcotics, Firearms Charges Filed Against Youngstown ManRead the Press Release
A six-count indictment was returned charging a Youngstown man with narcotics and firearms crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Emmett T. Perkins, III, 47, was charged with being a felon in possession of firearms, distribution of heroin and possession of machine guns not registered to him.
Count 1 charges that on or about July 20, 2012, Perkins possessed an AMT, model Backup, .380 caliber pistol, despite previous convictions for trafficking in crack cocaine, domestic violence, intimidation of a crime victim or witness and aggravated assault.
Counts 2 and 4 of the indictment charge Perkins with distributing less than 100 grams of heroin on or about July 20, 2012, and less than 100 grams of heroin on or about August 3, 2012.
Count 3 charges that on or about August 3, 2012, Perkins possessed a Taurus, model 689, .357 caliber pistol, after he had been previously convicted of the charges listed above.
Count 5 charges that on or about October 3, 2012, Perkins possessed a Ceska Zbrojovka, model VZ26, 7.62 x 25mm machinegun, and a Carl Gustav, Swedish K, model 45, 9mm machinegun, after being convicted of the above-listed crimes.
Count 6 charges that on or about October 3, 2012, Perkins possessed a Ceska Zbrojovka, model VZ26, 7.62 x 25mm machinegun; a Carl Gustav, Swedish K, model 45, 9mm machinegun; and a German, MP-40 Type, 9mm machinegun, said firearms not registered to him in the National Firearms Registration and Transfer Record, as required by law.
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 sentences 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 - Youngstown Field Office and the Mahoning Valley Law Enforcement Task Force. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Accused Bank Robber Charged with EscapeRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that a federal grand jury in Cleveland, Ohio, returned an indictment charging Perry T. Johnson, age 22, of Cleveland Ohio, in connection with his escape from the Bedford Heights Jail on August 12, 2013.
The indictment charges that Mr. Johnson escaped from the Bedford Heights Jail, where he was ordered detained by U.S. Magistrate Judge Kenneth S. McHargh, pending the resolution of a separate criminal case. In that case, Johnson pled guilty to robbing two CVS pharmacies in November 2012, brandishing a firearm in connection with one of the robberies, and possessing with the intent to distribute oxycodone that he stole from one of the CVS pharmacies. He is scheduled to be sentenced on August 20, 2013, in connection with that case.
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. The defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
This case is being prosecuted by Assistant U.S. Attorneys Matthew B. Kall and Margaret A. Sweeney, following investigation by the U.S. Marshal Service and the Bedford Heights Police Department.
Seven Oncologists Charged with Importing Unapproved DrugsRead the Press Release
Seven Ohio oncologists were charged with importing cancer medications that had not been approved by the Food and Drug Administration, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The doctors were charged with causing the shipment of misbranded drugs, a misdemeanor violation of the Food, Drug and Cosmetic Act. Their names, ages and the city where they practiced medicine are:
Ranjan Bhandari, 56, Liverpool.
Timmappa Bidari, 68, Parma.
David Fishman, 62, Euclid.
Su-Chiao Kuo, 60, Brunswick.
Marwan Massouh, 54, Westlake.
Poornanand Palaparty, 62, Cleveland.
Hassan Tahsildar, 55, Euclid.
“These doctors used drugs that had not been approved by the FDA,” Dettelbach said. “Our office is committed to working with our partners to make sure patients are getting medicine that has been properly inspected.”
“FDA’s regulatory standards are designed to ensure the safety and quality of the medical devices and drugs distributed to American consumers,” said Antoinette V. Henry, Special Agent in Charge, FDA’s Office of Criminal Investigations. “We will continue to work to investigate all persons, including medical professionals, who disregard regulatory requirements and jeopardize the public health by participating in the distribution of misbranded products.”
The doctors are accused of obtaining drugs, including Zometa, Kytril, Taxotere, Gemzar, Eloxatin and others, from outside the United States, where the drugs were not approved by the FDA, according to the charges.
A drug may be considered misbranded even if it is identical in composition to an FDA-approved drug (that is, a drug labeled and packaged in compliance with the FDA’s standards) and even if it was made by the same manufacturer in the same facility as the FDA-approved version.
If convicted, the doctors face up to one year in prison and fines up to $100,000. Their sentences 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.
These cases are being prosecuted by Assistant U.S. Attorney Michael L. Collyer following investigations by the FDA – Office of Criminal Investigations and the Department of Health and Human Services – Office of Inspector General.
Anyone suspecting health care fraud, waste or abuse can report it by calling the U.S. Department of Health and Human Services, Office of Inspector General at 800-447-8477. To learn more about health care fraud prevention and enforcement go to www.stopmedicarefraud.gov
A charge is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Vermilion Man Sentenced to 17 1/2 Years in Prison for Defrauding Nearly 100 Clients Out of $4.4 MillionRead the Press Release
A Vermilion man was sentenced to 17 1/2 years in prison and ordered to pay more than $4.4 million in restitution for financial crimes that victimized nearly 100 clients, law enforcement officials said today.
Richard A. Zakarian, age 48, pleaded guilty this year to two counts each of wire fraud and mail fraud and one count of making and subscribing false income tax returns. Zakarian was a certified financial planner and a self-employed tax preparer who owned and operated several business ventures.
Zakarian operated two schemes – one to defraud investment clients (many of whom were also clients of his tax-preparation business), another to defraud clients whose payroll taxes he handled through a company known as Ben Franklin Payroll Service.
Many of the payroll tax victims were churches, charities and other non-profit organizations that Zakarian lured as clients through purported grants from charity he claimed to operate. Court documents further detail Zakarian’s falsification of his tax returns to conceal his fraudulently generated income from the investment scheme.
“This defendant preyed on non-profits, churches and small businesses that struggled to make ends meet while making their communities better,” Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, said. “He never meant to help them, only to defraud them. This was a systemic, deliberate pattern of behavior that took place over years.”
Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigations’ Cleveland Office, said: “Zakarian orchestrated multiple financial schemes that all had one common thread, monetary benefit to him. Authorities will continue to bring those to justice that choose to unlawfully violate the trust of their clients.”
Documents filed in U.S. District Court detail the following schemes:
THE INVESTMENT SCHEME
From September 2002 through August 2012, Zakarian devised a scheme to defraud investment clients by inducing them to invest their retirement funds, and occasionally other savings, through him as their account representative through false and fraudulent misrepresentations. He primarily targeted clients from his tax-preparation business when they received their tax refunds or sought his financial advice.
Zakarian misled clients to believe their funds would be placed in safe, guaranteed-return investments when, in fact, he diverted the funds to pay personal and business expenses and invested in risky investments for which he had a consistent history of incurring large losses.
Zakarian recruited 25 investment clients, often targeting tax preparation clients who he knew to have available funds and to be vulnerable to his pitch through their lack of financial sophistication and/or prior relationship of trust in him.
While some received a return on part or all of their investment, 23 clients incurred combined out-of-pocket losses of more than $1 million. In addition, the clients did not receive hundreds of thousands of dollars of gains on their investments that Zakarian falsely reported to them during the scheme.
A number of clients were retired, out of work, or nearing retirement. Most invested through Zakarian by moving their money from in traditional, relatively safe and dependable stocks, bonds and mutual funds.
In one case, Zakarian convinced a recently retired client to pay an early-withdrawal penalty to move money from a certificate of deposit purchased upon retirement. He induced another client to redeem a life insurance annuity to generate investment funds and talked her out of using the money to pay off her home mortgage or car loans.Until mid-2009, Zakarian obtained use of clients funds primarily by having them place their investments with companies offering self-directed IRA services, and then having those companies transfer the funds to Zakarian as investments in promissory notes he issued. Zakarian initially issued the notes personally, as Zakarian Tax Consultants, but later issued them through a shell real estate company, Viewcrest Properties. Zakarian touted the IRA companies to his clients and misled many clients into believing that they were investing in those companies or that the use of the companies would assure the safety of their investments. Due to Zakarian’s misrepresentations, many clients did not realize their investments involved promissory notes.
THE PAYROLL TAX SCHEME
Zakarian began his separate payroll tax scheme in 2010 that continued through August 2012.
He induced clients to retain Ben Franklin Payroll Service, which he owned and operated, leading them to believe the company would and did file the client’s required employment tax returns and reports and pay the clients’ federal, state and local tax obligations.
The funds should have been forwarded to various taxing authorities to pay the income taxes of his clients’ employees. In reality, he failed to file many of the returns and diverted substantial portions of the clients’ funds to pay his own personal and business expenses and invest in highly-leveraged, risky investments with a consistent history of sustaining large losses.
Zakarian devised the scheme in hopes of raising money to be able to pay victims of his investment fraud scheme described above. He hoped to generate large, quick profits, which he would use to cover his operating expenses, repay his investment clients, pay his clients’ employment taxes and have money left over; instead, he consistently lost money.
He attempted to solicit for-profit clients by offering services well below market rates and below his own operating costs, such as a rate of $1 per employee per pay period. Later in 2010, after this failed to generate as many clients as he envisioned, Zakarian developed a new plan to solicit churches, charities and other non-profits through a purported “grant” program. These organizations were targeted as they typically had tight budgets sensitive to payroll costs. Zakarian’s primary objective was to gain access to their operating accounts.
Zakarian began marketing Ben Franklin Payroll Service as being affiliated with Zakarian Charities and the Benjamin Franklin Foundation, organizations established “as an effort to give back to the community.” He offered payroll grants from the Benjamin Franklin Foundation to non-profit organizations to cover two years of free payroll service through Ben Franklin Payroll Service.
To make the grant process appear legitimate, the application required the applicant to submit a one- or two-page narrative history and mission statement, a copy of the IRS tax-exempt determination letter, a list of the Board of Directors, an IRS Form 990 and an annual report, if available. About two weeks after receiving the client’s application, Zakarian sent a congratulatory letter, announcing that the Benjamin Franklin Foundation had awarded a two-year renewable grant.
Rather than forwarding the monies withdrawn to from his clients’ accounts directly to taxing authorities, Zakarian instructed his employees to transfer the tax funds to a Ben Franklin Payroll Service operating account. Clients were sent false quarterly employment tax returns and payroll summaries, giving the false impression that their payroll taxes were being properly handled.
In total, Ben Franklin had at least 72 clients who incurred combined losses of more than $3.4 milllion from Zakarian’s fraudulent diversion of their employment tax funds entrusted to his company. Just over half of the losses were incurred by at least 29 non-profit organizations, with the rest being incurred by at least 43 businesses.
Zakarian also filed false federal income returns for the years 2006 through 2009, failing to report the income he received from the investment scheme. He filed the 2006 through 2008 returns deliquently in December 2009 after the Ohio Division of Securities requested copies. On the 2006 and 2007 returns, Zakarian also falsely claimed substantial losses on the investments he made with the fraudulently obtained client funds, and used those losses to offset other income he earned those years.
This case was prosecuted by Assistant U.S. Attorneys Robert J. Patton and John M. Siegel, following an investigation by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the Lorain Police Department, and the Lorain County Prosecutor’s Office. The investigators also received assistance from the Ohio Department of Commerce, Division of Securities.
Toledo Man Indicted on Child Pornography ChargeRead the Press Release
An indictment was filed charging Bryan Lorann, age 29, of Toledo, with receipt and possession of child pornography between May 20, 2011 and February 23, 2012, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Department of Homeland Security, Immigration and Customs Enforcement, Cleveland, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
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.
U.S. Attorney's Office on Pace for Record Number of Firearms IndictmentsRead the Press Release
The United States Attorney’s Office for the Northern District of Ohio filed 124 illegal firearms indictments in the first half of this year, U.S. Attorney Steven M. Dettelbach announced.
“Our office and law enforcement partners continue to work around the clock enforcing our nation’s firearms laws,” Dettelbach said. “We are on pace to file more firearms indictments than ever before.
“While we will continue to lock up the worst of the worst, who are forbidden from having guns but get them anyway, we must also continue to work to find systemic solutions to curbing the epidemic of gun violence,” Dettelbach said.
Broken down by geography in the district, the most indictments filed came out of the Cleveland office, with 53. That was followed by the Youngstown office (43), Toledo office (16) and Akron office (12).
There were 73 defendants sentenced so far this year for firearms crimes and the average sentence was nearly six years in prison (71.6 months).
Details of selected cases:
Warren Operation
More than 150 firearms were seized as part of an investigation that resulted in charges against 55 people for violations of federal firearms and narcotics laws in April. An additional 42 people were charged in state court. In just one example, Lewis Powell of Warren was indicted for illegally possessing 14 firearms, as well as body armor and weapons with obliterated serial numbers, as part of a conspiracy that brought heroin and cocaine from Detroit to Warren.
U.S. v. Schmidt
Richard Schmidt, of Toledo was indicted in January on a variety of firearms charges after investigators found him in possession of 18 firearms, body armor and more than 40,000 rounds of ammunition, despite a previous manslaughter conviction. Schmidt pleaded guilty and is scheduled to be sentenced in October.
U.S. v. Clements
Raymone Clements was sentenced to nearly 23 years in prison in July after a jury previously found him guilty of one count each of being a felon in possession of a firearm and being a felon in possession of ammunition.
Testimony at his trial showed Clements was shot a dog in a park in Cleveland Heights and has possession of a firearm and ammunition, despite 15 felony convictions, including rape, drug trafficking and aggravated robbery.
U.S. v. Romero
Jose Romero, of Lorain, was pleaded guilty in June to possessing 40 rifles, pistols and revolvers despite a 2005 conviction for domestic violence which precluded him from having firearms. He is scheduled to be sentenced in September.
Project Safe Neighborhoods is a nationwide commitment to reduce gun and gang crime in America by networking existing local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. Since its inception in 2001, approximately $2 billion has been committed to this initiative. This funding is being used to hire new federal and state prosecutors, support investigators, provide training, distribute gun lock safety kits, deter juvenile gun crime, and develop and promote community outreach efforts as well as to support other gun and gang violence reduction strategies.
PSN prosecution statistics for calendar year 2002 through 2012 are as follows (these numbers reflect indictments for the full calendar year, while the 124 figure above is just through the first half of 2013):
2002: 117 indictments
2003: 155 indictments
2004: 184 indictments
2005: 220 indictments
2006: 187 indictments
2007: 191 indictments
2008: 157 indictments
2009: 156 indictments
2010: 166 indictments
2011: 218 indictments
2012: 176 indictments
Two from Northeast Ohio Convicted in $8 Million Tax FraudRead the Press Release
Two self-proclaimed “citizens of the world” from Northeast Ohio were found guilty of conspiring to defraud the Internal Revenue Service out of more than $8 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
A jury found Don P. Gooch and Gerard F. Scott guilty of five counts, including one count of conspiracy and two counts each of making false claims, following a three-day trial. U.S. District Judge Donald Nugent is scheduled to sentence the men on October 24th. According to court records Don P. Gooch, 64, resides in East Cleveland, where Gerard F. Scott, 38, had a last known address.
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 $17,000,000 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.
The conspirators initially succeeded in having refunds of approximately $261,000 deposited into a new bank account opened by Scott’s wife and $3.7 million deposited into a new bank account opened by Gooch as a trust account in the name Nhondi Eden Holdings. From those two accounts, over $2.5 million was transferred into a new bank account opened by Scott in the name Private Equity Investment Trust. Over the next few weeks after receiving the refunds, approximately $60,000 in currency was withdrawn from Scott’s wife’s account, while Scott, at times accompanied or assisted by his wife or Gooch, purchased and attempted to purchase a number of expensive or luxury items. The items included approximately $100,000 worth of gold and silver coins purchased jointly by Scott and his wife, a $93,000 Range Rover purchased in the nominee name of a purported ministry known as the Light of Peace Society, and a $164,000 Porsche and a $487,000 home in Aurora that Scott attempted to purchase in the nominee name, according to court documents.
This case is being prosecuted by Assistant United States Attorneys John M. Siegel and Justin J. Roberts following an investigation by the Internal Revenue Service – Criminal Investigation.
Uhrichsville Woman Charged with Making A Bomb ThreatRead the Press Release
A grand jury returned a one-count indictment charging an Uhrichsville woman with making a bomb threat, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jennifer Jean Ebert, 25, is charged with phoning in the threat to the MedCentral Wellness Complex, in Mansfield, which caused its evacuation on March 22, 2013, according to the indictment.
The case is being prosecuted by Assistant U.S. Attorneys Justin Seabury Gould and Edward F. Feran, following investigation by agents of the Federal Bureau of Investigation, and members of the Ontario (Ohio) Division of Police.
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.
Massillon Man Accused of Embezzling $442,000 from ClientsRead the Press Release
A criminal information was charging a Massillon man with bank embezzlement and false returns related to a scheme in which he defrauded four clients out of $442,072, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The information alleges that David Lee Cheviron, 61,was a financial consultant at First Merit Bank, Huntington Bank, and JP Morgan Chase Bank between 2006 and 2010, during which time he embezzled the money from the clients.
Cheviron converted the money for his own personal use. Cheviron also failed to report the funds he received from the schemes on his federal tax returns, according to the information.
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, his 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 it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Vasile C. Katsaros, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.
An information is only a charge and is not evidence of guilt. The Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
#####Three Brook Park Men Indicted for $2 Million Food-Stamp FraudRead the Press Release
Three Brook Park men were indicted for defrauding the Supplemental Nutrition Assistance Program (formerly the Food Stamp Program) out $2 million from four Cleveland stores where they accepted food stamps for ineligible items such as beer and cigarettes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Saed (Sam) Wahdan, 41, his brother, Maher (Mario) Wahdan, 42, and Nidal Jaber, 45, were each indicted on one count of conspiracy to commit food stamp fraud, one count of food stamp fraud and two counts of unlawful redemption of food stamps. Maher Wahdan faces an additional count of theft of public funds.
“The food stamp program has provided nutritious food to thousands of hungry families over the years,” Dettelbach said. “We will continue to work to recover money stolen from the program and eradicate waste, fraud and abuse of government programs.”
Between January 2008 and March 2012, the defendants and others conspired to commit more than $2 million in food-stamp fraud through four of their businesses: One Stop Beverage, 5105 Franklin Blvd.; Bridge Deli and Beverage, 4700 Bridge Ave.; Franklin Beverage and Deli, 4719 Franklin Blvd., and Scott Food Mart, 951 Linn Drive.
The Wahdans owned and operated all four stores but put them in the names of other people to conceal the fact that Saed Wahdan had a prior conviction for food stamp trafficking and Maher Wahdan had a prior conviction for impersonating an officer – both of which precluded their participation in the food stamp program, according to the indictment.
The defendants used their businesses to exchange customer food stamps for cash and other unauthorized items, including beer and cigarettes. They also purchased food stamp cards from customers and used them at other grocery locations to purchase inventory for their stores and for their personal use, according to the indictment.
The indictment seeks to forfeit property derived from the proceeds of the criminal conduct of the Wahdans, including the following Cleveland properties: 9604 Dennison Ave.; 3353 West 44th Street; 3374 West 130th Street; 1452 West 75th Street and 951 Linn Drive.
This case is being prosecuted by Assistant U.S. Attorneys Christos N. Georgalis, Vasile Katsaros and James Morford following an investigation by the U.S. Department of Agriculture, Office of Inspector General-Investigations and Department of Homeland Security, Homeland Security Investigations.
If convicted, the defendants’ sentences will be determined by the court after a review of factors unique to the case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum 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.
Aurora Man Sentenced to Six Years in Prison for $300,000 Construction SchemeRead the Press Release
An Aurora man was sentenced to more than six years in prison and ordered to pay restitution for crimes related to a scheme of more than $300,000 involving construction projects, 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 J. Berryhill, 51, previously pleaded guilty to five counts of mail fraud, two counts of wire fraud, and one count each of aggravated identity theft and false personation of an officer or employee of the United States.
U.S. District Judge Sara Lioi sentenced Berryhill to 75 months in prison. She ordered him taken into custody and remanded at the conclusion of the hearing.
Berryhill created a fictitious company as a way to divert money on construction projects for his own personal use, including the restoration of a vintage Corvette sports car he had purchased, according to court documents.
“This defendant abused the trust of his employer, his colleagues and his customers in an effort to enrich himself,” said Dettelbach. “He used public contracts as a way to get his Corvette restored and his pockets lined with hundreds of thousands of dollars.”
“Robert Berryhill created false businesses, false invoices and ultimately pretended to be an FBI employee, all in a desperate attempt to defraud others out of $304,000,” Anthony said. “The FBI remains committed to detecting and stopping those defrauding others.”
Berryhill, previously served as the senior vice president of Carnegie Management and Development Corp. (CMDC) in Westlake, Ohio.
Knoxbi Company, LLC, which was managed by CMDC, won the bid to build an FBI office in Knoxville, Tennessee in August 2007. The company used Blaine Construction Company to serve as the on-site general contractor, according to court documents.
In March 2009, Indy-Fedreau LLC, which was also managed by CMDC, won the bid to construct an FBI building in Indianapolis. The company used Welty Building Company as the general contractor, according to court documents.
At the same time, Berryhill also created a fictitious contractor known as American Excavators Company (AEC) for the purpose of submitting false invoices to divert CMDC monies to his personal use, according to court documents.
From August 2008 through September 2009, Berryhill defrauded CMDC, Knoxbi, Indy-Fedreau, Blaine and Welty to obtain money. He did this by creating false invoices in the name of Ore Enterprises – the Pennsylvania company Berryhill hired to restore his vintage Corvette – and then submitted them to Blaine and Welty. Those companies paid the invoices then passed the cost on to Knoxbi and Indy-Fedreau for final payment, according to court documents.
Berryhill also created false invoices in the name of AEC that he submitted to Blaine and Welty. Those companies paid AEC and then passed the cost of the invoice to Knoxbi and Indy-Fedreau for final payment, according to court documents.
Overall, Berryhill caused an actual loss of at least $304,669. Judge Lioi ordered him to pay that amount in restitution.
Berryhill also falsely pretended to be an FBI employee identified as “W.C.M.” on July 28, 2008, and demanding that Blaine pay an invoice from Ore regarding the construction of an FBI building in Knoxville, according to court documents.
The case resulted from an investigation conducted by Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Robert J. Patton.
Ashland Man Pleads Guilty for His Role in Labor Trafficking ConspiracyRead the Press Release
An Ashland man pleaded guilty to one count of conspiracy 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.
Daniel J. Brown, 33, admitted that from between August 2010 through October 2012, he conspired with Jordie L. Callahan, Jessica L. Hunt and Dezerah L. Silsby to establish and continue a pattern of domination and control over their victims, identified only as S.E. and B.E.
The plea agreement includes a provision that Brown will cooperate with investigators, including testifying truthfully at all court proceedings if necessary.
Callahan, 26, Hunt, 31, and Silsby, 21, all of Ashland, were indicted earlier this month on multiple charges. They are accused of using 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 the indictment.
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 indictment.
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, according to the indictment.
Callahan, Hunt and Silsby face one count each of the following: conspiracy to violate laws; forced labor; theft of government benefits and acquiring a controlled substance by deception. Callahan and Hunt face an additional charge of tampering with a witness.
The case is being prosecuted by Assistant U.S. Attorneys Chelsea Rice and Thomas E. Getz, with assistance from Trial Attorney Victor Boutros of the Justice Department’s Human Trafficking Prosecution Unit, following an investigation by the FBI and Ashland Police Department, with assistance from the Ashland County Prosecutor’s Office.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including each defendant’s prior criminal record (if any), his or her 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 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.
South African Charged with Failure to Depart U.S. and Assault on Federal EmployeeRead the Press Release
A grand jury returned a four-count superseding indictment charging Ziyaya Mtola, 39, with two counts of failure to depart the United States and two counts of assault on a federal employee, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Mtola is an alien and a citizen of the Republic of South Africa who physically resisted efforts to remove him from the United States pursuant to an order of removal on March 29, 2013, and April 22, 2013, physically injuring two immigration agents on the latter date.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the Enforcement and Removal Operations of the Immigration and Customs Enforcement Agency.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
New Philadelphia Man Indicted for False Identification CrimesRead the Press Release
A federal grand jury returned an indictment against Julio Tzip-Yac, aka Bush, age 30, of New Philadelphia, Ohio, charging one count of possession of document-making implements and four counts of fraudulent identification documents, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The first count alleges that from on or about June 27, 2013, the defendant was in possession of a computer, two identification card printers, and other equipment which was capable of producing counterfeit alien registration cards, Social Security cards and state driver’s licenses.
The remaining counts allege that on various dates in 2012 and 2013, Tzip-Yac, transferred matched sets of false alien registration cards, Social Security cards, and driver’s licenses.
The indictment is a result of a joint investigation conducted by Immigration and Customs Enforcement, Department of Homeland Security and the Ohio State Highway Patrol. The case is being prosecuted by Assistant United States Attorney Phillip J. Tripi.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s 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.
Five from Mahoning Valley Indicted on Federal Firearms ChargesRead the Press Release
Five men from the Mahoning Valley were indicted this week on unrelated cases of being felons in possession of firearms or ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Michael Harver, 24, of Poland; Jawonn Hymes, 22, of Boardman; Andre L. Owens, 38, of Warren; Thomas I. Sledge, 33, of Struthers, and Carl D. Washington, 25, of Warren.
“We will continue to work to get firearms and ammunition off the street and out of the hands of felons who are forbidden by law from having them in the first place,” Dettelbach said. “Cases like this are possible because of the efforts of federal agents and local police working together.”
Harver is accused of having an FIE .38-caliber pistol and ammunition on April 28, 2013, despite a conviction for felonious assault in Mahoning County.
Hymes is accused of having a Smith and Wesson .40-caliber pistol and ammunition on June 27, 2013, despite previous convictions of trafficking in drugs and possession of cocaine in Mahoning County.
Owens is accused of having 9 mm Winchester bullets on May 27, 2013, despite numerous convictions in Trumbull County and Washington County (Pennsylvania) for crimes including sexual battery and multiple cocaine offenses.
Sledge is accused of having a CZ .40-caliber pistol and ammunition on June 5, 2013, despite numerous convictions in Trumbull County, including attempted murder with a firearm specification, felonious assault, having weapons under disability and other crimes.
Washington is accused of having an H&R .22-caliber revolver and ammunition on May 30, 2013, despite previous convictions for felonious assault, aggravated burglary and tampering with evidence in Trumbull County.
These cases are being prosecuted by Assistant United States Attorney David M. Toepfer following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Youngstown Field Office, the Warren Police Department, the Struthers Police Department, the Youngstown Police Department and the Boardman Police Department.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, 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 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.
Child Pornography Charges Filed on Sherrodsville ManRead the Press Release
Robert S. Terry, 62, of Sherrodsville, 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 May 12, 2013, through on or about May 18, 2013, Terry knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct.
On June 21, 2013, images of child pornography were also found on his 8GB flash drive, according to the indictment.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Canton 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.
Boardman Man Charged with Aiming Laser Pointer at Medical HelicopterRead the Press Release
A federal grand jury returned a one-count indictment charging Travis D. Krzysztofiak, age 34, of Boardman, Ohio, with aiming a laser pointer at an aircraft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about June 15, 2013, Krzysztofiak aimed the beam of a laser pointer at a medical helicopter on approach to Akron’s Children’s Hospital in Boardman, Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigaton and the Boardman Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Akron Man Indicted for Heroin DistributionRead the Press Release
A federal grand jury returned an indictment charging an Akron man with possession with intent to distribute and distribution of heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Willie L. Sanders, Jr., age 27, is accused of possessing appoximately 27.9 grams of heroin on March 21, 2013, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration, the Akron Police Department Street Narcotics Uniformed Detail (SNUD), and the 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.
Leroy Township Man Sentenced to Nearly Six Years in Prison for FraudRead the Press Release
A Leroy Township man was sentenced to nearly six years in prison for fraud that occured during his employment as a project manager with The Fowler Company which cost the company nearly $1 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jeffrey A. Boring, 50, previously pleaded guilty to two counts of mail fraud involving schemes to defraud The Fowler Company and ESI, Inc., a company which employed Boring after his employment with The Fowler Company terminated.
U.S. Judge Sara Lioi sentenced him to 71 months in prison and ordered him to pay a total of $978,810 in restitution. Boring’s term of imprisonment was increased for obstruction after he altered documents and submitted them to the government as proposed exhibits to be used in his defense at trial.
“Perhaps with six years in federal prison, plus just under a million reasons to think about his conduct, Mr. Boring will finally get the message that crime does not pay,” Dettelbach said.
From on or about June 27, 2006, through on or about January 18, 2011, Boring, while employed as a project manager with The Fowler Company, created and approved fraudulent invoices from a company he created called Fairport Industrial Group. In addition, Boring instructed vendors, which provided materials and services for Boring’s personal purposes, to invoice the cost to Fowler, according to court documents.
From on or about August 10, 2011, through on or about February 8, 2012, Boring, while employed as a project manager at ESI, Inc., approved purchase orders and invoices for payment for product purportedly needed for ESI customer contracts. In fact, ESI paid for product needed by Boring for contracts he had through Fairport Industrial Group with the Defense Logistics Agency, according to court documents.
This case was the result of an investigation conducted by Special Agent Russell G. Csaszar with the Federal Bureau of Investigation and Special Agent Brandee Kemer with the Office of the Inspector General, Defense Criminal Investigation Service. This case was prosecuted by Assistant United States Attorneys Henry F. DeBaggis and Mark S. Bennett.
Bay Village Man Sentenced to Nearly Four Years in Prison, Ordered to Pay $620,000Read the Press Release
A Bay Village man was sentenced to nearly four years in prison and ordered to pay more than $620,0000 for fraud and tax crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Frederick C. Bryant, age 45, admitted to embezzling $505,832 from a victim that he guaranteed a 5 percent rate of return. Bryant converted the money for his own personal use. Bryant also failed to report the funds to the IRS, according to court documents.
He pleaded guilty earlier this year to crimes of mail fraud and tax evasion.
U.S. District Judge Dan Polster sentence Bryant to 46 months in prison. He also ordered Bryant to pay $505,832 in restitution to the victim and more than $115,000 in interest and penalties to the Internal Revenue Service.
This case is being prosecuted by Assistant United States Attorney Vasile C. Katsaros, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.
Orange Village Man Sentenced to Two Years in Prison, Ordered to Pay $1.9 Million for Health Care FraudRead the Press Release
A man who lives in Orange, Ohio and admitted to overbilling Medicaid and Medicare was sentenced to two years in prison and ordered to pay more than $1.9 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Divyesh “David” C. Patel, 40, pleaded guilty last year to one count of conspiracy to commit health care fraud and four counts of health care fraud.
“This defendant defrauded the public out of nearly $2 million by forging signatures, billing for services that were never provided or were performed by aides with criminal records,” Dettelbach said. “This sentence should send a message to those who would engage in health care fraud that they will end up in prison and stripped of the money they steal.”
Patel and his company Alpine Nursing Care, Inc., located at 4753 Northfield Road, Suite 5, North Randall, Ohio, employed Belita Mable Bush, as the office manager and director of provider services from June 1, 2006 through October 18, 2009, according to court documents.
Patel and Alpine employed Bush to prepare and submit the billings to Medicaid and Medicare for reimbursement for services provided by Alpine as a home health care provider, even though Patel knew that Bush had been previously convicted of a health care-related felony that excluded Bush from being involved in any way with Alpine’s Medicaid and Medicare billings, according to court documents.
In addition to the fact that Bush was excluded from handling Alpine’s medical billings, Patel was aware that Bush falsified documents related to health care services allegedly provided to home health patients where the services were never provided, or were provided by home health aide that had previous criminal convictions that excluded them from providing health services in people’s houses, according to court documents.
As a result of the conspiracy, Medicaid and Medicare suffered a loss of more than $1.9 million, according to court documents.
Bush pleaded guilty to making a false statement and is scheduled to be sentenced on Aug. 20.
This case is being prosecuted by Assistant U.S. Attorney Mark Bennett and Special Assistant General Constance Nearhood, following an investigation by the Office of the Inspector General, Department of Health and Human Services, Cleveland; Ohio Attorney General’s Office, Medicaid Fraud Control Unit; and the Federal Bureau of Investigation, Cleveland.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Heights Man Sentenced to Nearly 17 Years in Prison for Drug CrimeRead the Press Release
A Cleveland Heights man was sentenced to nearly 17 years in prison for drug crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Donte Booker, age 45, was found guilty earlier this of one count of attempted possession of five or more kilograms of cocaine.
U.S. District Judge James S. Gwin sentenced Booker to 16 years and eight months in prison.
Booker met with a confidential source in October 2012 in Cleveland to discuss a potential identity theft scheme. Booker also told the source that he was a home invader and had heard the source knew drug dealers in the area that he could rob of large amounts of drugs and/or money, according to court documents.
Over the next two months, Booker planned a robbery of 10 kilo grams of powder cocaine with individuals he believed were drug couriers, but who were in fact law enforcement. Booker repeatedly and explicitly expressed a willingness to use deadly force to effect the robbery. Law enforcement officials therefore decided the original scenario would be too dangerous and instead adopted Booker’s suggestion to conduct the robbery in a hotel parking lot, according to court documents.
Booker repeatedly stated that he would have no problem selling 10 kilograms of cocaine. On Jan. 8, 2013, Booker learned that a bag he believed contained 10 kilograms of powder cocaine was located inside a vehicle parked at the La Quinta Hotel on West 150th Street in Cleveland. Booker arrived at the parking lot, awaited the signal and stole the sham cocaine and was eventually arrested, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Edward F. Feran and Adam Hollingworth following an investigation by the Northern Ohio Law Enforcement Task Force (NOLETF) and the Cleveland Police Department.
The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Homeland Security Investigations, U.S. Coast Guard Investigative Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Strongsville Police Department, Westlake Police Department and Shaker Heights Police Department.
Three Indicted, One Charged in Information for Labor TraffickingRead the Press Release
A five-count indictment was filed charging three people from Ashland, Ohio, with 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, law enforcement officials said today.
Jordie L. Callahan, 26, Jessica L. Hunt, 31, and Dezerah L. Silsby, 21, 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 indictment.
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 indictment.
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, according to the indictment.
A fourth person, Daniel J. Brown, 33, of Ashland, was charged with one count of conspiracy in a criminal information filed today.
“These charges paint a picture of the unspeakable cruelty these defendants inflicted upon this mother and her child,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “It provides another stark reminder that human trafficking takes place all around us, and that we need to be better neighbors to one another.”
“These defendants are being held accountable for their unfathomable treatment of another human being,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The FBI will continue to aggressively pursue and bring to justice those individuals that force others into unlawful labor or sex practices.”
Callahan, Hunt and Silsby face one count each of the following: conspiracy to violate laws; forced labor; theft of government benefits and acquiring a controlled substance by deception. Callahan and Hunt face an additional charge of tampering with a witness.
The conspiracy between Callahan, Hunt, Silsby 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; obtaining S.E.’s and B.E.’s public assistance benefits 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, according to the indictment.
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, according to the indictment.
In or around September 2010, Callahan and Hunt forced S.E. to have her and B.E.’s public assistance benefits issued on a debit card rather than paper check. They then took control of the card, forced S.E. to give them the PIN and used the card for their own benefit and the benefit of their family and friends, according to the indictment.
In August 2011, Silsby, 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 Silsby 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, according to the indictment.
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, according to the indictment.
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, according to the indictment.
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, according to the indictment.
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, according to the indictment.
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, according to the indictment.
In June 2011, after S.E. and B.E. had attempted to flee the apartment, Callahan and Hunt ordered Brown and Silsby to find S.E. and B.E. and bring them back to the apartment. Brown and Silsby 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, according to the indictment.
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, according to the indictment.
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, according to the indictment.
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 is being prosecuted by Assistant U.S. Attorneys Chelsea Rice and Thomas E. Getz, with assistance from Trial Attorney Victor Boutros of the Justice Department’s Human Trafficking Prosecution Unit, following an investigation by the FBI and Ashland Police Department, with assistance from the Ashland County Prosecutor’s Office.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including each defendant’s prior criminal record (if any), his or her 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 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.
Six from Northeast Ohio Indicted for Conspiracy to Distribute HeroinRead the Press Release
Six men from Northeast Ohio were indicted on one count of conspiracy to distribute heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Maceo Moore, aka “Chase,” aka “Paper,” 37, of Euclid; Keith Ricks, aka “K-Mack,” 31; Maurice Golston, aka “Reese,” 32; Leamon Shephard, aka “Juice,” 25; Dionte Thompson, aka “Dionte Ricks,” aka “Pringles,” 24; and Marcus Blue, aka “Blue,” 30, all of Cleveland.
The indictment alleges that between approximately August 2012 and June 2013, the defendants conspired to distribute and possess with intent to distribute one kilogram or more of heroin.
All six defendants were arrested on June 19, 2013, after being charged by a federal complaint with conspiracy to distribute heroin. At that time, all six defendants waived their rights to detention and preliminary hearings and were ordered detained without bond pending further proceedings in the case.
The indictment results from an investigation conducted by the Federal Bureau of Investigation, the Northern Ohio Law Enforcement Task Force (NOLETF), the High Intensity Drug Trafficking Area (HIDTA) Task Force, Cleveland Division of Police and the Internal Revenue Service.
This case is being prosecuted by Assistant United States Attorneys Matthew W. Shepherd, Matthew B. Kall, and Daniel J. Riedl.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offense and the characteristics of the violation. In all cases, the sentences 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.
The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Strongsville Police Department, Westlake Police Department and Shaker Heights Police Department. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives. The HIDTA Program supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug-trafficking in Ohio.
Canal Fulton Man Indicted on Two Counts of Inducing A Minor to Engage in Sexually Explicit ConductRead the Press Release
A Canal Fulton man was indicted on two counts of inducing a minor to engage in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
William P. Lacey, aka “Ponch,” age 54, 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.
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.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including each defendant’s prior criminal record (if any), his 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 indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sandusky Man Sentenced to 10 Years in Prison for Child Pornography ConvictionRead the Press Release
A Sandusky man was sentenced to 10 years in prison for child pornograpyh crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Duane Wilson, 45, pleaded guilty earlier this year to one count of receipt of child pornography, which occurred between 2005 and 2009, according to court documents.
Wilson also admitted to sexually abusing a child, approximately 10 years old, according to court documents.
This case was prosecuted by Assistant U.S. Attorney Ava Dustin following an investigation by the Federal Bureau of Investigation, Toledo.
McComb Man Charged with Aiming Laser Pointer at Medical HelicopterRead the Press Release
An indictment was filed charging Ronald E. Deal, Sr., age 56, of McComb, Ohio, with aiming a green laser pointer at a Mercy St. Vincent Medical Center Life Flight helicopter en-route from the hospital to Bluffton Airport, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The conduct took place on June 17, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation. The case is being handled by Assistant United States Attorney Joseph R. Wilson.
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.
Child Pornography Charged Filed on Rossford ManRead the Press Release
An indictment was filed chagring James Rynn, age 33, of Rossford, Ohio, with receiving, distributing, and possessing child pornography between February and April 2012, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Toledo, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
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.
Rossford Man Charged with Imperonating ATF Special AgentRead the Press Release
An indictment was filed charging Brent North, age 47, of Rossford, Ohio, with with creating false federal law enforcement credentials and impersonating a federal law enforcement agent, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
On Jan. 14, 2011, North produced a false credentials identifying himsealf as a Special Agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives, according to the indictment.
On Dec. 8, 2012, North falsely stated he was a Special Agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives on consequently received favorable lease terms on a residential property in Oregon, Ohio, 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 Bureau of Alcohol, Tobacco, Firearms and Explosives, Toledo, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
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.
Justice Department Distributes More Than $3.4 Million to Local Police and Law EnforcementRead the Press Release
The Justice Department this week distributed more than $3.4 million to local and state law enforcement agencies under its equitable sharing program, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“This money will provide badly needed resources to police departments throughout Northeast Ohio. Departments and agencies in Cuyahoga, Summit, Stark and Lake County will all get money, in some cases hundreds of thousands of dollars,” Dettelbach said. “The community gets a double benefit when we take ill-gotten money from criminals and drug dealers and use it to support local police and law enforcement.”
The money came from seizures and forfeitures in three federal cases –a heroin trafficking organization led by Christopher Ugochukwu, the money laundering conviction of Paul Monea and a 2010 traffic stop in Twinsburg that resulted in a seizure of $677,660.
Under the equitable sharing formula, the Justice Department keeps 20 percent of the seized assets. The remaining money is divided among other participating agencies based on hours worked on the case. The U.S. Marshal administers the funds.
More than $2 million came from the Ugochukwu case. Most of that came from cash that was forfeited. Additionally, property was seized in Solon, Cleveland, Cleveland Heights and Shaker Heights. Twelve vehicles were also seized.
Ugochukwu is currently serving a 26-year prison sentence for leading an organization that brought heroin from Nigeria, Mexico and Colombia and sold it throughout Greater Cleveland. Authorities seized more than 20 kilograms of heroin in 2010, believed to be the largest heroin seizure in Ohio history. Twenty-three people were convicted of crimes for their roles in the operation.
The Northern Ohio Law Enforcement Task Force, which led the Ugochukwu investigation, received more than $1.7 million. The NOLETF is jointly led by the FBI and Cleveland police and focused on large-scale drug trafficking investigations.
That $1.7 million will be divided among the cities and agencies whose departments participated in the Ugochukwu investigation, including Cleveland, the Greater Cleveland Regional Transit Authority, Cleveland Heights, Euclid, Shaker Heights, the Cuyahoga County Sheriff’s Office, the Cleveland Metropolitan Housing Authority, University Heights and the Lake County Narcotics Agency.
The FBI and Cleveland, University Heights and Parma police departments will also receive forfeited vehicles.
More than $1.7 million came from the conviction of Paul Monea, who was sentenced to 13 years in prison for conspiracy and money laundering. Monea tried to sell the 43-carat “Golden Eye” diamond to an undercover FBI agent posing as a broker for a South American drug cartel.
The diamond was seized and auctioned following Monea’s conviction, as was $100,000.
More than $1.2 million from the Monea case will go to local and state police. The distribution of assets is as follows: the Canton Police Department, $749,525; the Alliance Police Department, $282,429; the Ohio Adult Parole Authority, $46,460; the Stark County Sheriff’s Office, $37,092; the Internal Revenue Service, $36,643; the Shaker Heights Police Department, $36,643; the Ohio National Counterdrug Task Force, $19,496; the Jackson Township Police Department, $12,289; the Massillon Police Department, $8,990, and the Perry Township Police Department, $3,853.
Finally, Khalilah Crumpler had an outstanding warrant in Mayfield Heights when she was pulled over on a traffic stop in Twinsburg in 2010. She was taken into custody and a search of her car revealed $677,660 – some of which was wrapped in dryer sheets, which is often used to mask the smell of drugs. A drug detection dog then alerted positively for the odor or illegal narcotics. That currency was forfeited because it constituted proceeds from drug trafficking activities and/or was used or intended to be used to facilitate drug trafficking.
Of that money, $432,947 went to the Twinsburg Police Department and $54,880 to the Summit County Prosecutor’s Office.
Former Manager for Cuyahoga Heights School District Sentenced to 11 Years in Prison for Stealing $3.4 MillionRead the Press Release
A former employee of the Cuyahoga Heights School District was sentenced to more than 11 years in prison for the theft of more than $3.4 million from the district, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Joseph M. Palazzo, age 31, of Independence, Ohio, previously pleaded guilty to conspiracy to commit mail fraud, conspiracy to commit money laundering, and wire fraud.
U.S. District Judge Benita Pearson sentenced Palazzo to 136 months in prison and ordered him to pay $3.4 million in restitution.
“This defendant stole millions of dollars that were intended to educate school children,” Dettelbach said. “There is simply no room for this type of corruption in our community.”
“This investigation uncovered a multi-million dollar embezzlement scheme laced with a web of financial lies that left a local school district in financial peril,” said Kathy Enstrom, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
“Joseph Palazzo violated the trust that the citizens and students of Cuyahoga Heights had placed in him by funding his personal account with millions of their tax dollars,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The investigators are to be commended for uncovering this enormous fraud.”
Palazzo was employed by the Cuyahoga Heights School District as its Information Technology Director until February 2011. Palazzo was responsible for managing the district’s IT Department, which included purchasing hardware and software and making other IT expenditures to benefit the district and its students, according to court documents.
Palazzo devised a scheme to divert millions of dollars of district funds to his personal use and the personal use of others. This scheme involved Palazzo submitting to the district for payment false invoices that purported to be for IT-related goods and services purchased from legitimate companies by the district’s IT Department to benefit the district. Palazzo represented that the invoices he submitted were legitimate, and he approved the false invoices himself or forged the signature of another in the approval section, according to court documents.
However, these invoices were for services never performed, fictitious software and hardware, and software and hardware never received or already purchased by the district from another source. The companies named on the invoices did not supply such goods to or perform such services for the district and were nothing more than “shells,” according to court documents.
Palazzo’s actions caused the district to issue checks to these shell vendor corporations, which were established and owned by others working with Palazzo. The shell vendor corporation owners, in turn, kept approximately half of the stolen money themselves and funneled the remainder of the money back to Palazzo for his personal use, according to court documents.
As a result of the conduct of Palazzo and his co-conspirators, the district was defrauded and sustained a total loss of at least $3,333,448, according to court documents.
Palazzo also engaged in a second scheme to defraud the district. It involved Palazzo purchasing various personal electronic items, such as I-Pads, cameras, and televisions, from legitimate district vendors. Palazzo then altered the invoices from such purchases to falsely reflect that classroom items, such as digital microscopes, projectors, and laptops, had been purchased for the district and submitted those invoices to the district for payment. Upon receipt of these personal electronic items, Palazzo sold them to third-parties at a discounted price and kept the money from such sales for his own personal use, according to the information.
As a result of the Palazzo’s conduct in the second scheme, the district was defrauded and sustained an additional loss of at least $76,214, according to the information.
This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation, both located in Cleveland, with the assistance of the State of Ohio Auditor’s Office, the Cuyahoga County Sheriff’s Office, and the United States Postal Inspection Service.
The case is being prosecuted by Assistant United States Attorney Rebecca Lutzko, Special Assistant United States Attorney Perry Mastrocola, and Assistant United States Attorney James L. Morford.Canton Man Charged with Theft of Firearms and Dealing Firearms Without A LicenseRead the Press Release
Oct. 18, 2013Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced that a federal grand jury returned a 12-count indictment charging Renard Torrence, age 50, of Canton, Ohio, with engaging in the business of dealing in firearms without a license and with theft of firearms from federal firearms licensees.
Count 1 of the indictment charges that from in or about April 2013, to in or about August 2013, Torrence dealt in firearms without being a federally licensed firearms dealer.
Counts 2 through 12 of the indictment charges that Torrence stole firearms from Federal Firearms Licensees as listed below.
COUNTDATE
FIREARM
FFL
2
April 11, 2013
Smith & Wesson, Model SD40VE, .40 pistol
MC Guns LLC,
Medina, OhioJune 11, 2013
Keltec, Model P11, 9mm pistol
All Seasons Sports Center, Inc., Wooster, Ohio
4
June 20, 2013
Bersa, Model Thunder, .380 pistol, and a Keltec, Model P11, 9mm pistol
Kames Sports Center, North Canton, Ohio
5
July 2, 2013
Smith & Wesson, Model SD9VE, 9mm pistol, and a Ruger, Model P89, 9mm pistol
Miller Gun Supply Ltd., Sugarcreek, Ohio
6
EAA, Model SARK2P, 9mm pistol, and a Smith & Wesson, Model SD9VE, 9mm pistol
Valley Gun & Collectables Inc., Strasburg, Ohio
7
July 17, 2013
Smith & Wesson, Model MP40, .40 pistol, and a Beretta, Model 92FS, 9mm pistol
Midwest Gun Club, Canal Fulton, Ohio
8
July 19, 2013
Glock, Model 21, .45 pistol, and a Keltec, model P32, .32 pistol
Pro Armament Co. Cuyahoga Falls, Ohio
9
July 25, 2013
Kahr, Model CW9, 9mm pistol, and a Smith & Wesson, Model SD40, .40 pistol
Top Gun Supply, Chesterland, Ohio
10
July 29, 2013
Smith & Wesson, Model MP9, 9mm pistol, and a Keltec, Model PF9, 9mm pistol
The Hunt’n Shack, Carrollton, Ohio
11
July 31, 2013
Smith & Wesson, Model SD9VE, 9mm pistol, and a Smith & Wesson, Model MP15, .223 rifle
Apex Powersports, New Philadelphia, Ohio
12
August 5, 2013
Taurus, Model PT92, 9mm pistol, a Smith & Wesson, Model MP40, .40 pistol, and a Marlin, Model 75C, .22 rifle
Top Shot Firearms LLC, Ravenna, Ohio
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Carroll County Sheriff’s Office. 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.
Akron Man Sentenced to 10 Years in Prison for Leading Mortgage Fraud Scheme That Resulted in $36 Million LossRead the Press Release
An Akron man was sentenced to 10 years in prison for leading massive mortgage fraud schemes in Ohio and Florida, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The restitution owed by Jack R. Coppernger, age 50, will be determined later this year. The government has asked for $35 million.
More than 40 people have been found guilty of crimes for their various roles in the mortgage fraud, which has led to losses of more than $36 million.
“This defendant led a ring whose crimes covered two states and resulted in losses of tens of millions of dollars,” Dettelbach said. “Mortgage fraud crimes devastate entire neighborhoods and communities.”
In delivering his sentence, U.S. District Judge John Adams said to Coppenger: “This was all greed. This was all planned, this scam and scheme. You knew and you had to know when this house of cards began to fall. You’re still out looking for new people to prey on.”
Coppenger previously pleaded guilty to two counts of conspiracy.
In the first count, Coppenger conspired to commit bank fraud and to make false statements to influence a bank to make a loan in connection with a mortgage fraud scheme involving property in the Panama City, Florida area, resulting in approximately a $36 million loss.
In the second count, Coppenger conspired to defraud the United States by impairing and impeding the ability of the I.R.S to assess Coppenger’s taxes in 2006 by concealing funds Coppenger received from a land “flip” conducted by Andrew Norman and Jason Herceg.
Norman and Herceg were both recently sentenced to 40 months in prison and ordered to pay $14 million in restitution.
According to court documents, they operated a company in Stow under the name of V.P. Equity LLC and, with Coppenger, procured “straw buyers” and submitted false loan documents to banks to purchase Coppenger’s lots in Florida (which had already been inflated in value as part of a land flip) in a mortgage fraud scheme.
Coppenger, with assistance from Herceg and Norman, perpetrated a large mortgage fraud scheme involving numerous straw buyers primarily from the Akron, Hartville, and Mentor areas. These straw buyers essentially sold their good credit scores to Coppenger in order for Coppenger to secure loans, through straw buyers’ names, for properties in Florida. Coppenger promised the straw buyers that if they signed the loan application and paperwork, Coppenger would pay them an inducement amount.
Coppenger then promised the straw buyers that he would make all the mortgage payments for the property and would make any down payments that were necessary, and that, once the property was developed and sold, they would split the profits equally.
Ultimately, Coppenger failed to make the mortgage payments on these loans, resulting in a loss of approximately $36 million, according to court documents.
Herceg and Norman defrauded two elderly purchasers by selling them a Florida property for $7 million. Moments before this sale, Herceg and Norman bought the property through their partnership, 104 Investments, from the original seller and inflated its value by approximately $2.6 million. Herceg and Norman then sold this property to these elderly purchasers, who were never told of the last minute “flip”, or that they were actually buying the land from Herceg, Norman, and 104 Investments. Herceg and Norman, and their 104 Investments business partner, Robert Jason Workman, received approximately $2.6 million from this sale which they then funneled portions of the proceeds out to themselves which included a $690,000 to Coppenger as payment for locating the property. Subsequently, Norman, Herceg, and Workman fraudulently deducted the money they gave to Coppenger as a business expense.
Coppenger was also conspired with business partner Kathleen A. Fada-Murray and her husband, Willliam Murray, to defraud the United States by concealing from the I.R.S. their receipt of monies from the fraudulent land flip. William Murray and Fada-Murray were not involved in the fraud against the elderly purchasers but were owed a return on her investment in Coppenger’s company, SMB&A. Once Fada-Murray became aware that Coppenger had received $690,000 as a result of the fraud in count one, she took steps to obtain some of this money herself, her husband, and others, and conspired with Coppenger to conceal their receipt of these funds from the I.R.S. by transferring funds into and out of accounts with corporate names, and out of an account in the name of Coppenger and his wife, characterizing these funds as a repayment of a loan, and using these funds to pay for Fada-Murray’s personal expenses, including online gambling debts, credit card payments, car payments, and federal and state taxes, as well as for personal expenses of Coppenger, including carpeting, car payments, and the payment of business expenses to keep the mortgage fraud scheme going.
Both Fada-Murray and William Murray pleaded guilty to their roles in this scheme. William Murray was also charged with recruiting two straw buyers for Coppenger in this scheme. Fada-Murray was sentenced to five years probation and ordered to pay back taxes while William Murray was sentenced to two years in prison and ordered to pay $450,440 in restitution. Workman was sentenced to six months in prison and ordered to pay $77,000.
Thus far, 37 straw buyers have pleaded guilty to a charged of conspiracy to commit loan fraud and bank fraud. All have been sentenced or are awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorneys Christian H. Stickan and Henry F. DeBaggis, following investigation by agents of the IRS-CI and FBI, Akron Office.
Shaker Heights Man Indicted for Impersonating A Diplomat, Attempting to Buy House and Car with Fake DocumentsRead the Press Release
A Shaker Heights man was indicted for impersonating a diplomat and attempting to buy a house and car using fictitious financial documents, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Derek J. Bishop, 42, was named in a seven-count indictment filed in U.S. District Court. He is charged with fictitious obligations, impersonating a diplomat and wire fraud.
Bishop used fictitious Fifth Third checks in March 2013 to attempt to purchase a Nissan Armada for $54,098 from Ganley Nissan. He also tried to use fictitious checks to make payments to Verizon, AT&T, and Nationwide Insurance, according to the indictment.
Bishop falsely claimed he was a foreign diplomat of the Vatican/Postmaster General of the Divine Province in an attempt to avoid paying taxes on the vehicle and to demand his release from the Cuyahoga County Jail, according to the indictment.
Finally, Bishop used fraudulent trust documents in March 2013 to attempt to purchase property in Moreland Hills, Ohio, for more than $3.1 million. He attempted to purchase the property by providing Chicago Title Company LLC with false and fraudulent trust documents representing to be for the Bishop Family Trust, even though the trust had no assets or funds to pay the purchase price, according to the indictment.
This case is being prosecuted by Assistant United States Attorney Matthew W. Shepherd 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 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.
Aurora Man Charged with Defrauding His Beachwood Employer and Investment Clients Out of $366,000Read the Press Release
A 10-count information was filed charging an Aurora, Ohio, man with defrauding his Beachwood-based employer and its investment clients out of about $366,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland office of the Federal Bureau of Investigation.
Andrew J. Franz, age 41, was charged with three counts of mail fraud, one count of securities fraud, one count of investment adviser fraud and five counts of income tax evasion.
“This defendant betrayed the trust of his employer and his clients,” Dettelbach said. “He lined his pockets with the money that people worked a lifetime to save.”
Anthony said: “Andrew Franz enriched himself with hundreds of thousands of ill-gotten dollars by creating and carrying out various fraudulent schemes. The FBI will continue to work with our law enforcement partners to bring to justice those that steal the hard-earned money of others.”
The first three counts of the information charge that Franz, through his employment and association with the Ruby Corporation (Ruby), a Beachwood investment company, defrauded Ruby and at least 10 of its clients by misappropriating more than $366,000 in customer funds for his own personal use and benefit.
Franz submitted quarterly fee requests to mutual fund and annuity companies for payment of investment advisory fees for Ruby’s clients’ investment accounts. Franz then caused these companies to issue checks by mail to Ruby, which checks Franz intercepted and deposited into bank accounts he maintained and controlled, and which funds he used for his own personal use and benefit, according to the information.
Franz submitted some fee requests that were for amounts not due and payable to Ruby, and some fee requests that were for amounts greater than were due and payable to Ruby. Franz also caused mutual fund and annuity companies to send some of these fraudulently obtained fee payments through the mail to his own residence, according to the information.
On some occasions, Franz deposited the funds obtained by his fraudulent fee requests into the accounts of Ruby in an attempt to conceal his fraudulent activity. Franz also contacted a mutual fund company by telephone and, misrepresenting himself as the owner of a trust, caused the mutual fund company to mail payments to Franz’s personal residence. Franz then deposited these checks into bank accounts he maintained and controlled, according to the information.
The information specifically lists three checks, drawn on the accounts of various clients of Ruby, that the Integrity Life Insurance Company sent to Franz’s personal residence between July 20, 2010 and September 7, 2010 as payment for false and fraudulent fee requests that Franz submitted.
Count 4 charges Franz with securities fraud in using and employing manipulative and deceptive devices and contrivances in connection with the purchase and sale of securities by employing devices, schemes, and artifices to defraud, and by engaging in practices which operated as a fraud on investors.
Count 5 charges Franz with investment adviser Fraud in aiding and abetting an investment adviser, namely, Ruby Corporation, in employing a scheme to defraud a client or prospective client, and engaging in a practice which operated as a fraud and deceit upon a client, through the use of the mail and instrumentalities of interstate commerce.
Counts 6 through 8 charge that Franz committed income tax evasion for calendar years 2007, 2008, 2009 by filing false and fraudulent tax returns. Counts 9 and 10 charge Franz with Income Tax Evasion for calendar years 2010 and 2011 by failing to make an income tax return as required by law, and by conducting his business affairs and personal expenditures in a manner designed to conceal his receipt and disposition of income and assets from the Internal Revenue Service. The total amount of additional tax due and owing by Franz for the tax evasion charged in Counts 6 through 10 is $245,352, according to the information.
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.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Christian H. Stickan and Trial Attorney Scott M. Watson, following investigation by agents of the FBI, Cleveland Office and IRS-Criminal Investigations, Cleveland Office, with assistance of the United States Securities and Exchange Commission, Chicago, Illinois.
Two from Lorain County Charged with Fraud for Diverting $290,000 from Escrow AccountRead the Press Release
Two Lorain County men were charged with conspiracy to commit wire fraud for defrauding companies and customers out of more than $290,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Charged in the criminal information are Gregory R. Klima, 52, of Avon Lake, and Timothy R. Grodzik, 52, of Columbia Station. The men owned Title Access, LLC, with Klima serving as president and Grodzik as vice president of sales, according to the information.
Title Access was formed in 2000 and in the business of administering real estate transactions by providing services including title insurance and escrow account management. Title Access used Stewart Title as an underwriter for the issuing of title insurance, according to the information.
Klima and Grodzik are accused of defrauding Stewart and parties to real estate transactions by diverting funds from Title Access’ escrow account for their personal benefit between December 2009 and February 2011, according to the information.
Around February 2011, Grodzik, with Klima’s knowledge, falsified Access’ financial documents to conceal from a Stewart auditor the fact that they diverted funds from the Title Access escrow account, according to the information.
This case is being prosecuted by Assistant U.S. Attorney Robert J. Patton following an investigation by the Federal Bureau of Investigation and the Ohio Department of Insurance.
An information only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Charged with Illegally Reentering the United StatesRead the Press Release
Two people were indicted on unrelated cases of illegal reentering the United States following deportation, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
One indictment alleges that Yobany Teofilo Gonzalez-Velasquez, 37, is undocumented and was previously removed or deported from the United States to Guatemala on February 12, 2009, subsequent to a conviction for an aggravated felony.
Another indictment alleges that Julio Cruz-Lopez, 27, is undocumented and was previously removed or deported from the United States to Mexico on multiple occasions.
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 cases are being prosecuted by Assistant U.S. Attorneys Phillip J. Tripi and Justin Seabury Gould, following investigation by agents of the Enforcement and Removal Operations of the Immigration and Customs Enforcement Agency.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Man Charged with Making False StatementsRead the Press Release
A grand jury returned a two-count indictment charging Cleven Thomas, aka Cleveland Thomas, age 69, with one count of making false statements in application for a passport and one count of making false statements to a federal agency, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about January 28, 2013, Thomas knowingly and willfully made false statements on a passport application, including his failure to disclose his use of multiple birth dates and Social Security Account Numbers, his prior marriage, and his prior divorce.
The indictment also alleges that on or about May 30, 2013, Thomas made a material false statement to special agents of the United States Department of State, Bureau of Diplomatic Security in that he claimed his passport application was true and accurate.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the United States Department of State, Bureau of Diplomatic Security.
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.
Lexington Man Indicted on Child Pornography ChargesRead the Press Release
A federal grand jury returned a three-count indictment charging Peter J. Schmidt, age 26, of Lexington, Ohio, with producing, distributing and possessing child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges on or about July 7, 2006, and July 8, 2006, Schmidt used, persuaded, induced, enticed and coerced a minor, to engage in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced using materials that had been mailed, shipped, and transported in interstate and foreign.
The indictment also charges that on or about March 11, 2013, Schmidt knowingly distributed five computer image files, which files each contained a visual depiction of a real minor engaged in sexually explicit conduct.
The indictment also charges that on or about June 4, 2013, Schmidt knowingly possessed a computer disk, which contained visual depictions of real minors engaged in sexually explicit conduct.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Canton 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.
Florida Man Indicted for $4 Million Bank Fraud Related to Massillon Construction ProjectRead the Press Release
A Florida man was indicted on four counts for a scheme in which he defrauded Fifth Third Bank out of approximately $4 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Russell W. Spitz, age 75, owned and operated his company, Vision Power Systems, out of the Jacksonville, Florida area, where is currently residing. He was indicted on one count of bank fraud and three counts of wire fraud.
The indictment charges that between in or around December 2006, and in or around August 2008, Spitz knowingly executed a scheme to defraud Fifth Third Bank of approximately $4 million.
The indictment alleges that this scheme began when Spitz’s company, Vision Power Systems, agreed to construct and operate a biomass boiler for FiberCorr, a corrugated paper company based in Massillon, Ohio. The biomass boiler was intended to reduce energy expenses by providing heat and steam power to FiberCorr’s paper mills. The project was financed by the Stark County Port Authority, but Fifth Third Bank issued a letter of credit to guarantee the bonds.
The indictment alleges that Spitz submitted a number of fraudulent documents to Fifth Third Bank during the loan negotiation process, which Fifth Third Bank relied up on when it decided to enter into the loan agreement with Spitz. Fifth Third Bank disbursed approximately $4.1 million for the project.
The indictment alleges that Spitz did not use the funds for construction of the boiler, and, as a result, construction on the boiler stopped in 2008. The project was never completed.
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.
This case is being prosecuted by Assistant U.S. Attorney Chelsea S. Rice of the Cleveland U.S. Attorney’s Office, 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.
Federal Inmates Indicted for Having Marijuana in PrisonRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that a federal grand jury returned indictments charging two people with possession of contraband in prison.
One indictment charges that on or about August 7, 2012, while an inmate in Federal Correctional Institute Elkton, Jason D. Melton, age 32, possessed marijuana in violation of federal statutes prohibiting the possession of contraband in prison.
Another indictment charges that on or about April 4, 2013, Albert Robinson, age 42, possessed marijuana while an inmate in Federal Correctional Institute Elkton.
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 cases are being prosecuted by Assistant United States Attorneys M. Kendra Klump and Margaret Sweeney, following investigations by the Youngstown Resident Agency of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Conspiracy, Fraud and Other Charges Filed Against Pair from Northeast Ohio in 84-Count IndictmentRead the Press Release
A pair from Northeast Ohio were named in an 84-count superseding indictment, charged with a variety of schemes that resulted in a loss of more than $43,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Charged are Angelique Bankston, 41, of South Euclid, Ohio, and Jocelyn Hale, 31, of Cleveland.
Bankston and Hale were each charged with one count of conspiracy to commit bank fraud, three counts of conspiracy to commit money laundering, one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of conspiracy to commit mail fraud.
In addition, Bankston was charged with five counts of bank fraud, eight counts of mail fraud, five counts of aggravated identity theft, and 59 counts of money laundering.
Hale was charged with four counts of bank fraud, one count of aggravated identity theft, and five counts of money laundering.
The superseding indictment alleges that Bankston and Hale, using identities of several individuals without their authority, defrauded Citizens Bank, Lending Club Corporation, and Wells Fargo Bank.
Bankston and Hale funded a Wells Fargo Bank account with counterfeit funds totaling $13,027.22, according to the indictment.
Bankston and Hale also funded a second Wells Fargo Bank account with illegally obtained funds.
The superseding indictment also alleges that Bankston defrauded the Ohio Department of Job and Family Services (ODJFS) and Dollar Bank.
Bankston funded a Dollar Bank account with illegally obtained funds totaling $27,460. Bankston defrauded ODJFS by causing the United States Postal Service to hold mail for several individuals, without their authority. Bankston then stole U.S. Bank ReliaCards issued by ODFJS in the amount of $2,800 in the names of those individuals, according to the indictment.
If convicted, Bankston’s and Hale’s sentence will be determined by the Court after review of factors unique to this case, including their prior criminal record, if any, their role in the offenses, and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases they will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Mark S. Bennett and Special Assistant United States Attorney Perry D. Mastrocola, following an investigation by the Internal Revenue Service, Criminal Investigation, Federal Bureau of Investigation, and United States Postal Service, Cleveland.
An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Charged for Trying to Provide A Cell Phone to Federal InmateRead the Press Release
A two-count information was filed charging two people with aiding and abetting each other in an attempt to provide a cell phone to an inmate of a federal correctional facility, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that.
Charged are Anyelina Lespin, age 34, of the Bronx, New York, and Kendy Hernandez, age 29, of the Northeast Ohio Correctional Center.
Count one charges that Lespin, aided and abetted by Hernandez, attempted to provide a prohibited object, to-wit, a cell phone, to an inmate of a federal correctional facility on Jan. 12, 2013.
Count two charges that Hernandez, an inmate of a federal correctional facility, aided and abetted by Lespin, attempted to obtain a prohibited object, to-wit, a cell phone.
The information was filed by Assistant United States Attorney Gregory C. Sassé after investigation by the Federal Bureau of Investigation.
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.
Fairlawn Man Sentenced to Three Years in Prison, Ordered to Pay $14 MilllionRead the Press Release
A Fairlawn man was sentenced to more than three years in prison and ordered to pay more than $14 million in restitution for his role in a mortgage fraud scheme in Florida and a separate scheme to defraud two elderly investors, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jason Herceg, 37, previously pleaded to three charges. He admitted to participating in the two schemes and failure to report his income derived from the scheme against the elderly investors.
Herceg and his business partner Andrew Norman conspired with Jack Coppenger in procuring “straw buyers” and submitting false loan documents to banks to purchase Coppenger’s lots in Florida (which had already been inflated in value as part of a land flip) in a mortgage fraud scheme. Coppenger, with assistance from Norman and Herceg, perpetrated a large mortgage fraud scheme involving numerous straw buyers, who essentially sold their good credit score to Coppenger, in order for him to secure loans, through straw buyers’ names, for property in Florida.
Coppenger promised money to the straw buyers if they signed the loan application and paperwork, that he would make any down payment and all the mortgage payments for the straw buyers, and that, once the property was developed, they would receive half the profits from any sale, according to court documents.
Norman and Herceg were mentored by Coppenger in how to recruit and use straw buyers. Norman and Herceg assisted Coppenger by using their brokerage company, Akron-based V.P. Equity, to prepare and submit falsified loan documents to the banks, which fraudulently inflated the income and assets of the straw buyers to qualify them for these loans. Ultimately, Coppenger failed to make the mortgage payments on these loans, resulting in a loss to banks of approximately $13.1 million, according to court documents.
In the second conspiracy scheme, Norman, Herceg, Coppenger and others, conspired to defraud two elderly individuals by selling them a Florida property for $7 million. Moments before the sale, Norman and Herceg, with Coppenger’s help, bought the property, through their partnership, 104 Investments, from the original seller and inflated its value by approximately $2.5 million. They then sold this property to these elderly individuals, who were told they were buying the property from the original seller. These elderly victims were never told of the last minute “flip” and that they were actually buying the land from Norman, Herceg and 104 Investments. Norman, Herceg, and their 104 Investments business partner, Robert Jason Workman, received approximately $2.5 million from this gain, and funneled portions out to themselves and paid $690,000 to Coppenger as a kickback for setting up the fraudulent scheme, which they fraudulently deducted as a business expenses, according to court documents.
Norman also failed to report the income from this fraudulent scheme on his 2006 tax return.
Norman was sentenced to more than three years in prison earlier this month. Coppenger has pleaded guilty and is awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorneys Christian H. Stickan and Henry F. DeBaggis, following investigation by agents of the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation’s Akron office.