Northern District of Ohio

The United States Department of Justice awarded the City of Cleveland a $1 million grant aimed at improving the Mount Pleasant neighborhood by expanding crime prevention programs, continuing targeted enforcement efforts and increasing programs for people returning to the neighborhood from prison, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The city was informed this week that it is a recipient of a $1 million Byrne Criminal Justice Innovation Program. The money will be disbursed over three years. Cleveland is one of only five cities to receive a full $1 million grant.

“This grant recognizes that improving public safety is about the people living in our neighborhoods and is a result of our longstanding, comprehensive approach and strong partnerships. It will support Cleveland Police and our law enforcement partners as they target violent crime, but it will also support a wrap-around approach for residents so that they have opportunities to choose a better life,” said Cleveland Mayor Frank G. Jackson. “I want to thank the Department of Justice for the grant and their continued partnership.”

“This money will allow us to expand a decade-long partnership between law enforcement, community leaders and social-service providers,” Dettelbach said. “These programs allow us to work together to prevent crime and to help those returning home from prison, instead of simply trying to arrest our way out of the crime problem.”

“Community engagement is a crucial part of the solution,” said Michael L. Walker, executive director of the Partnership for a Safer Cleveland. “Making arrests in and of itself will not prevent violent crime. We’re trying to work with community organizations to develop solutions the community can take ownership of.”

The grant will target the Mount Pleasant neighborhood on Cleveland’s southeast side, running along Kinsman Avenue between Lee Road and East 93rd Street.

Among the programs earmarked for funding through the grant:

* The continuation of the VGRIP gun suppression efforts, in which Cleveland police and federal agents work together to crack down on gun violence, often leading to federal prosecution of felons illegally in possession of firearms.

* The expansion of Stand Together Against Neighborhood Crime Everyday (STANCE), which will work with Mount Pleasant residents and community stakeholders to design and implement comprehensive prevention and reentry efforts, such as Operation Night Light (police and community leaders make surprise visits to parolees, training for those returning from prison) and Operation Focus (counseling, assessments, call-ins, coaching  and service delivery).

* A Fugitive Safe Surrender in 2014, in which law enforcement and clergy work together to establish a safe location for non-violent fugitives wanted for low-level felonies to turn themselves in.

* Creating a comprehensive approach to restoring order to crime hot spots in the neighborhood, including improved street lighting, dispersing loiterers, performing code inspections, cleaning up vacant lots and razing abandoned buildings. This component also includes continuing to train police officers to connect youth who witness violence to mental health services within 48 hours.

* Case Western Reserve University’s Begun Center for Violence Prevention will collect, analyze and evaluate data to ensure that activities are supported by evidence of need and to track results. Data will be gathered by Cleveland police, Cleveland Schools, the Office of Building and Housing, Juvenile Court, adult and juvenile parole and other partner agencies.

The grant is the result of a partnership between more than 30 agencies, including the City of Cleveland, the Cleveland Municipal School District, the Cuyahoga Metropolitan Housing Authority, Partnership for Safer Cleveland, Sisters of Charity Health System, Third Federal Foundation, Mt. Pleasant NOW, St. Luke’s Foundation, Mt. Pleasant Community Zone, Cleveland Police, Cleveland Community Relations Board, the U.S. Attorney’s Office, the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshal, Greater Cleveland RTA, Cuyahoga County Prosecutor’s Office, Cuyahoga County Sheriff’s Office, Cuyahoga County Department of Justice Affairs, Cuyahoga County Juvenile Court, Ohio Department of Rehabilitation and Correction, Ohio Department of Youth Services, National Council of Jewish Women, College Now Greater Cleveland, Adcom Communications, Community Assessment and Treatment Services, Ohio Adult Parole Authority, and many others.

A former paid cooperator for a federal law enforcement agency was sentenced to more than four years in prison today for a variety of crimes related to a mortgage-fraud scheme, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.

Paul R. Tomko, age 40, of Cleveland, pleaded guilty in March to one count of conspiracy to commit wire fraud and wire fraud, two counts of wire fraud, one count of student loan fraud and one count of concealment.

U.S. District Judge Christopher Boyko sentenced Tomko to 52 months in prison and ordered him to pay $327,044 in restitution.

“Paul Tomko has been sentenced, yet again, for being a fraudster to the tune of hundreds of thousands of dollars,” Anthony said. “The FBI hopes he has finally learned his lesson.”

Tomko pleaded guilty in 2009 to charges related to a mortgage fraud scheme and was sentenced to three years probation in the United States District Court for the Northern District of Ohio, in Case No.1:09CR29, according to court documents.

In 2007, Tomko had signed a paid cooperation agreement with a federal law enforcement agency wherein Tomko was to take full responsibility and make full disclosure of his own mortgage fraud-related violations and assist that agency in other mortgage fraud investigations. Tomko was paid approximately $19,500 in 2007 and $7,500 in 2008 by that agency under their agreement. Tomko concealed this income from the Probation Department and also falsely stated that the law enforcement agency had approved Tomko operating a mortgage business (The Mortgage House) from his residence, according to court documents.

Tomko, through his company, OKMOT (“Tomko” backwards) Real Estate Company, recruited his housekeeper to apply for fraudulent mortgage loans for four properties between 2006 through 2007. Tomko falsely inflated the income and assets of his housekeeper in order for her to qualify for these loans, according to court documents.

Once the loans closed, Tomko fraudulently received approximately $100,000 of the proceeds by filing mechanics liens for work not performed and directing funds to himself and/or companies he owned and controlled, as well as to others not charged in this conspiracy, according to court documents.

Tomko concealed income he received as a cooperator from a federal law enforcement agency, in order to fraudulently obtain student aid and grants from the United States Department of Education, according to court documents.

The case is being prosecuted by Assistant U.S. Attorneys Christian H. Stickan and Christos M. Georgalis, following investigation by agents of the FBI, Cleveland Office and The Office of the Inspector General for the United States Department of Education.

Sixty people were indicted in federal court for their roles in a conspiracy to bring heroin from Chicago and Atlanta and sell it throughout Greater Cleveland, law enforcement officials announced today.

An additional 32 people were indicted in Cuyahoga County Common Pleas Court on related state charges.
The indictments were announced today by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Timothy McGinty, Cuyahoga County Prosecutor, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office and Cleveland Police Chief Michael McGrath.

The 203-count federal indictment describes a conspiracy took place from at least September 2011 through this month.

Keith Ricks, Brandy M. Bates and Dammarkro S. Nolan obtained heroin from suppliers in Atlanta and transported the drugs to Cleveland by mail or car. Ricks, Maurice Golston, Dionte Thompson and Leamon Shephard also pooled their money to obtain heroin from Atlanta, according to the indictment.

Ricks then distributed the heroin to other traffickers in Cleveland, including Shephard, Golston, Marcus Blue, Maceo Moore, Gregory Hamilton and Robert Belk, according to the indictment.

Shephard also took the heroin he obtained from Ricks and other suppliers and distributed to other dealers. Moore also obtained the heroin and distributed it to other dealers, including Jamez Jamel Webb II, Rolando J. Reed and Terrance Fletcher, according to the indictment.

Ricks, Moore, Shephard, Blue, Golston, Nolan and others also planned and committed burglaries and robberies from other drug dealers, customers and each other. This was done to fund their drug trafficking, to obtain heroin and other drugs and to collect drug debts, according to the indictment.

The men then sold the stolen heroin at discounted prices or used the stolen money to obtain heroin. They identified potential victims through a variety of ways, including targeting those who appeared to have expensive jewelry or cars or by using women to gather information about potential victims and report back to them. They sometimes used firearms or zip ties to restrain victims, according to the indictment.

The conspirators conducted counter-surveillance on law enforcement, including posting sentries to serve as lookouts. They also shared information about drug traffickers who had been arrested and obtained court documents regarding the details of traffickers’ court dates as a way to warn co-conspirators not to do business with other traffickers who had been arrested, according to the indictment.

Jovan Fussell and others also obtained large quantities of heroin from suppliers in Chicago and transported the drugs to Cleveland, where it was distributed to heroin dealers including Kenneth E. Harris, Gregory Hamilton, David E. McCall, Jr. Pierre A. Campbell and others.

Harris then redistributed the heroin to other individuals, including Frederick L. Darling, Gregory T. Savage, Jr., Terrance L. Fletcher and other dealers. Darling then supplied heroin to several other people for redistribution, including Eugene Miller, Thomas C. McCully and others.

“These defendants used firearms and violence to fund an operation that brought heroin, and the death it causes, from across the country into Greater Cleveland,” Dettelbach said. “Far from some of these defendants’ glamorous view of themselves, the suffering they caused unmasks them for what they are – greedy heroin dealers who cared about little besides money.”

Anthony said: “These individuals represent the worst of the worst, putting everyday citizens in danger by engaging in countless violent acts while lining their pockets with ill-gotten drug money.  This wide-ranging investigation is another example of the comprehensive strategy by local, state and federal law enforcement to target, dismantle and eliminate the most significant criminal enterprises in our region.” 

“Cuyahoga County is on track this year to set record-breaking numbers for heroin deaths,” McGrath said. “Lives will be saves as a result of the hard work by the Northeast Ohio Law Enforcement Task Force. These arrests are a testament to the great results achieved when law enforcement agencies work together for the common goal of making our streets safe and drug free. Through our cooperative partnership we will continue to seek out those groups and individuals that push poison into our neighborhoods.”

McGinty said: “Let today's raids and indictments-- and the trials and convictions to come -- be a message to those who want to capitalize on addiction: There’s a prison cell already built, the floor is painted, the stainless steel toilet is installed – and it’s waiting for you.”

Those facing federal charges are as follows: Carl Akins, 37, of Cleveland; Darnell Alexander, 29, of Brooklyn; Brandy Bates, 30, of Cleveland Heights; Beneditto Belfiore, 23, of South Euclid; Robert Belk, 27, of Cleveland; Stevenson Black, 47, of Cleveland; Dominique Blair, 28, of Euclid; Latrice Blevins, 39, of Cleveland; Marcus Blue, 30, of Euclid; Michael Buchanan, 48, of Cleveland; Pierre Campbell, 29, of Cleveland; Frederick Darling, 57, of Cleveland; Jacob Derrickson, 25, of Euclid; Leamon Eddie, 46, of Cleveland; Dana Ervin; 51, of Cleveland; Corey Etheridge, 22, of Shaker Heights; Antwon Evans, 30, of University Heights; Frederick Ferrell, 61, of Cleveland Heights; Terrance Fletcher, 40, of Cleveland; Robert Lee Fowlkes, 31, of Cleveland; Jovan Fussell, 33, of Euclid; Maurice Golston, 32, of Cleveland; Jermaine Grayson, 25, of Cleveland; Lachelle Hall, 30, of Euclid; Gregory Hamilton, 37, of Cleveland; Kenneth Harris, 45, of Cleveland; Ryland Harris, 53, of Cleveland; David Harsley, 32, of Cleveland; Erian Harwell, 24, of Cleveland; Carlton Higdon, 44, of Cleveland; Dominique Ivory, 25, of Euclid; Douglas Johnson, 58, of Cleveland; Luther Johnson, 55, of Cleveland; Michael Jones, 50, of Cleveland; Andrew Lovings, 59, of Cleveland; Devonta Maxwell, 30, of Euclid; Dave McCall, 37, of Cleveland; Thomas McCully, 53, of Cleveland; Lamar Middleton, 25, of Cleveland; Eugene Miller, 51, of Cleveland; Sandra Miller, 33, of Painesville; Maceo Moore, 37, of Euclid; Vince Morgan, 22, of North Olmsted; Ed Nix, 48, of Euclid; Dammarkro Nolan, 39, of Painesville; Brenda Norman, 58, of Cleveland; Vernon Norman, 77, of Euclid; Antwone Nowden, 31, of Cleveland; Ivan Percy, 38, of Cleveland; Eric Powell, 38, of Cleveland; Rolando Reed, 23, of Cleveland; Keith Ricks, 31, of Cleveland; Gregory Savage, 53, of Cleveland; Kevin Scott, 47, of Cleveland; Leamon Shephard, 25, of Cleveland; Dionte Thompson, 25, of Cleveland; Jamez Webb, 21, of Cleveland; Jamal Williams, 34, of Cleveland;  Shaun Williams, 30, of Cleveland, and Raymundo Wren, 31, of Cleveland.

This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd, Daniel J. Riedl and Matthew B. Kall following a multi-year investigation by the Northern Ohio Law Enforcement Task Force (NOLETF).

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, U.S. Coast Guard Investigative Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Westlake Police Department and Shaker Heights Police Department.  The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives.  HIDTA supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.

The investigation was assisted by the Hotel Interdiction Team, another HIDTA initiative comprised of members of the FBI, Cuyahoga County Sheriff’s Office, Homeland Security Investigations and police departments from Broadview Heights, Brooklyn, Brook Park and Independence.

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.

A Youngstown man was indicted today on charges of possession with intent to distribute heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

On Aug. 17, 2013, Santos R. Rivera, age 47, possessed more than 100 grams of heroin, which amount is indicative of heroin trafficking, according to the indictment.

If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the 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 Drug Enforcement Administration and the Ohio Highway State Patrol. 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.

A Cleveland woman was sentenced to 16 months in prison for the theft of more than $41,000 in government benefits, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

India N. Parker, 37, will serve her federal sentence after serving a sentence in state prison related to offenses against a human corpse, tampering with evidence and criminal mischief.

Parker pleaded guilty earlier this year in U.S. District Court to two counts of theft of government property and five counts of making false statements.

Parker’s five-year-old daughter died in late 2006. Parker left the child’s remains to decay before putting the body in a trash bag and then in a garbage can in her front yard. A garbage truck then picked up and disposed of the child’s body. The body was never found, according to court documents.

After the child’s death, Parker lied about her daughter’s whereabouts to friends, family and investigators. While she disposed of the body, Parker stole and converted to her own use $40,236 in Social Security payments made to her daughter and $1,393 in food stamp benefits, according to court documents.

She also made false statements to agency representatives by stating that her daughter had been living with her when, in fact, Parker knew that her daughter was deceased during the relevant time frames, according to court documents.

The case was prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the Social Security Administration Office of Inspector General.

Two Akron men were indicted on charges of possession with intent to distribute more than two kilograms of methamphetamine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Robert E. Long, age 34, and Demarcus Golden, age 23, were also indicted on charges of use of the mail in interstate commerce to transport the drugs from Washington to Ohio via the United States Postal Service.

The defendants, while in another state, mailed an Express Mail box to themselves to an address in the Akron, Ohio area which contained approximately 10,196 pills of methamphetamine. 

The indictment resulted from an investigation conducted by the United States Postal Inspectors from Cleveland and Tacoma, Washington, the Department of Homeland Security, the Cleveland Police Department and Akron Police Department.  The case is being prosecuted by Assistant United States Attorney Teresa Dirksen.

If convicted, their sentence will be determined by the Court after review of factors unique to this case, including prior criminal records, if any, their role in the offenses and the unique characteristics of the violations.  In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum. 

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.

Three men were indicted for their roles in a conspiracy to distribute nearly 3,000 pills of Oxycodone, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Indicted are: Myron D. Black, age 44, of Mansfield, Ohio; Chauncey L. Ransom, age 49, of Inglewood, California, and Victor A. Hageman, age 45, of Euclid, Ohio.

“Prescription pill abuse is a major problem in Ohio,” Dettelbach said. “Whether it is a doctor selling prescriptions or people using the mail to ship pills across the country, we are committed to stopping the flow of illegal drugs.”

Ransom obtained a total of 2,989 pills (30 mg each) of Oxycodone, a Schedule II controlled substance, in California and mailed them to Black, Hageman and other in Ohio via the United States Postal Service Express Mail, according to the indictment.

Ransom often packaged the pills in video movie disc covers, plastic bubble mailing envelopes and other packaging to conceal the contents, according to the indictment.

Black and Hageman made arrangements with other individuals to receive the package from Ransom in return for money, usually $200, according to the indictment.

The conspiracy took place between at least August 2012 through April 2013, with Ransom mailing packages to addresses in Lakewood, Seven Hills, Akron and Mansfield containing shipments of between 200 and 600 pills, according to the indictment.

The indictment results from an investigation conducted by the United States Postal Inspection Service, in Cleveland, with the assistance of Metro-Richland County (Ohio) Enforcement Unit, and the Akron, Police Department, as well as the United States Postal Inspection Service, in Los Angeles, and the Los Angeles Police Department. The case is being prosecuted by Assistant United States Attorney Christian H. Stickan.

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.

A one-count criminal information was filed charging a Salem, Ohio, pharmacist with health care fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Bruce E. Franken, 52, was excluded in 2003 from participating in all federal health care programs, including Medicare and Medicaid, for a minimum of 10 years as a result of his felony conviction, according to the information.

“This defendant was specifically barred from billing programs such as Medicaid because of his criminal past,” Dettelbach said. “Our office will continue to stamp out waste, fraud and abuse of all federal programs, particularly those that affect our health care system.”

From May 14, 2009, through July 14, 2011, Franken worked as a pharmacist at J.H. Lease Pharmacy, 229 North Ellsworth Avenue, Salem, Ohio. He filled prescriptions for Medicaid recipients even though he knew he was excluded from participation in all federal health care programs.

As a result of Franken’s unauthorized and fraudulent claims, Medicaid was billed and subsequently paid these prescriptions that Franken was prohibited from providing in the amount of $301,550, according to the information.

If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, the defendants’ roles in the offense and the characteristics of the violation. The sentence will not exceed the statutory maximum and in most cases will be less than the maximum.

This case is being handled by Assistant U.S. Attorney Chelsea Rice and Special Assistant U.S. Attorney Constance Nearhood following an investigation by the U.S. Department of Health and Human Services, Office of Inspector General.

An information is only a charge and is not evidence of guilty. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The director of a Cleveland non-profit organization was sentenced today to a year in prison and ordered to pay more than $237,000 in restitution for withholding taxes from employees but not paying them over to the government, said Steven M. Dettelbach, the United States Attorney for the Northern District of Ohio.

Edward G. Kramer, 62, pleaded guilty to a 10-count criminal information in U.S. District Court in June. In addition to not paying over taxes withheld from employees, Kramer admitted that he also evaded his personal income tax obligations when he falsified his income tax returns for two years and did not file a file return in two other years, according to court documents.

“Today’s sentence is a reminder that we all have an obligation to truthfully report our income and pay taxes,” Dettelbach said. “It is especially incumbent on those who work in our legal system to follow the law themselves.”

Kramer was director and chief counsel of Housing Advocates, Inc., a non-profit organization in Cleveland that received federal funding from the U.S. Department of Housing and Urban Development. Kramer also maintained a private law practice and owned a property leasing business called Remark, according to the information.

Kramer underreported his income for calendar years 2007 (underreported by $79,262) and 2008 (underreported by $101,571), the understatement consisting of unreported payments from Housing Advocates accounts for his benefit as well as unreported income from his private law practice, according to the information.

Kramer also failed to file income tax returns for 2009 and 2010, despite the fact that he had taxable income of approximately $149,884 in 2009 and $270,687 in 2010, according to the information.

Collectively, Kramer sought to avoid paying taxes on approximately $500,000 in income between 2007 and 2010, according to the information.

Kramer was responsible for collecting, accounting for and paying over quarterly to the Internal Revenue Service income and FICA taxes on behalf of Housing Advocates, Inc. The organization deducted and collected the required taxes from the wages of its employees but Kramer willfully failed to pay over the taxes, according to the information.

The taxes collected but not paid over from January 2009 until September 2010 total nearly $80,000, according to the information.

This case is being prosecuted by Assistant U.S. Attorney Justin J. Roberts following an investigation by the Internal Revenue Service – Criminal Investigations and the Department of Housing and Urban Development – Office of Inspector General.

A former Lorain County corrections officer pleaded guilty today to one count of deprivation of rights under color of law, 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 Taylor, 47, of Vermilion, was working as a corrections officer in Lorain County Jail on July 29, 2012, when he assaulted an inmate by striking him repeatedly, according to court documents.

These actions caused bodily injury to the inmate and deprived the inmate of the right to be free from cruel and unusual punishment, according to court documents.

“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.”

“We in the Civil Rights Division are committed to working with our partners in the U.S. Attorney’s Office and the FBI to identify, and where appropriate, prosecute instances of law enforcement abuse,” said Acting Assitant Attorney General Samuels.

“The acknowledgment of excessive force exhibited by a fellow officer in law enforcement is disconcerting,” Anthony said. “The public should be reminded that the vast majority of those serving within the criminal justice system do so with honor and integrity. Any allegation of abuse or excessive force involving law enforcement officers takes on a particular sense of urgency and will continue to be a priority for the FBI.”

Taylor is scheduled to be sentenced on Dec. 19.

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.

Kathy A. Enstrom has assumed the position of Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Cincinnati Field Office, a position to which she was appointed by the Chief, Criminal Investigation, Richard Weber, in August 2013.

An 18-year veteran of IRS-CI, Ms. Enstrom began her career in 1995 with IRS-CI in as a student Special Agent in Cedar Rapids, Iowa.  Ms. Enstrom was promoted to Special Agent in 1996 and transferred to Chicago, Illinois.  During her field assignments, Ms. Enstrom worked various income tax, money laundering and Bank Secrecy Act investigations.  Specifically, she was assigned to the Chicago High Intensity Financial Crimes Area Task Force. 

Immediately prior to her assignment in Cincinnati, Ms. Enstrom served as a Supervisory Special Agent in Milwaukee, Wisconsin where she supervised agents and support staff in the Green Bay and Milwaukee offices.  In 2010, Ms. Enstrom was selected for the Deputy Attaché position in Ottawa, Canada.  While in Canada, Ms. Enstrom assisted Special Agents in retrieving information from Canadian authorities, businesses and individuals and developing financial investigations with International connections.

In 2011, Ms. Enstrom was selected as a participant in an IRS pilot program called the Accelerated Senior Leadership Program.  This program is designed to accelerate the development and advancement of leaders with the ability, engagement and aspirations to become a Senior Leader or Executive within IRS-CI.  As part of this program, Ms. Enstrom was detailed to Refund Crimes in Headquarters as a Senior Analyst.  While in Refund Crimes, Ms. Enstrom was the National Return Preparer Program Coordinator, established the IRS-CI Identity Theft Clearinghouse and assisted in the development of the Identity Theft Disclosure Waiver Program.  In May 2012, Ms. Enstrom was assigned to the Los Angeles Field Office as the Assistant Special Agent in Charge where she oversaw six groups in the Los Angeles and San Bernardino area.

Ms. Enstrom is a native of Marion, Iowa.  She graduated from Mount Mercy University in Cedar Rapids, Iowa in 1996 with a Bachelor’s degree in Accounting and Business Administration.  Ms. Enstrom completed her MBA in 2008 at Cardinal Stritch University located in Milwaukee, Wisconsin.  Ms. Enstrom is married to Jim Enstrom.

IRS-CI Cincinnati Field Office covers the entire State of Ohio, and includes Posts of Duty in Cincinnati, Dayton, Columbus, Cleveland, Independence, Akron/Canton, and Toledo.

Kathy Enstrom, Special Agent in Charge, IRS, Criminal Investigation, stated, “As forensic accountants, IRS-CI Special Agents are known for their ability to 'follow the money'”.  I am committed to making a difference and my office will use all of its resources in order to aggressively investigate individuals and businesses who commit income tax fraud, as well as, those who conspire to conceal their criminal activities.”

Ms. Enstrom is responsible for planning, directing, and evaluating activities of IRS-CI employees in the Cincinnati Field Office.  The mission of IRS-CI is to serve the American public by investigating potential criminal violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law.  IRS-CI’s top law enforcement priorities are outlined in the CI Compliance Strategy which is designed to promote tax compliance.  IRS-CI’s Program Strategy is comprised of three independent programs: Legal Source Tax Crimes; Illegal Source Financial Crimes; and Narcotics Related Financial Crimes.  IRS-CI must investigate and assist in the prosecution of those significant financial investigations that will generate the maximum deterrent effect, enhance voluntary compliance, and promote public confidence in the tax system.

A Mansfield man was found guilty of more than two dozen charges in connection with a mortgage fraud scheme which caused approximately $1.3 million in losses to Geauga Savings Bank, J.P. Morgan Chase Bank, Washington Mutual Bank, Interbaby Funding, LLC, and Suntrust Mortgage, Inc, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

David R. Sharrock, age 71, pleaded no contest to 26 counts, including conspiracy, bank fraud, wire fraud, bankruptcy fraud and making false statements.

His daughter, Rhonda J. McElroy, 51, of Bellville, Ohio, also was found guilty for her role in the conspiracy.

Defendants Ronald L Kightlinger, 51, of Crestline, Ohio, and Richard W. Balliett, 45, of Bucyrus, Ohio, previously pleaded guilty to crimes related to their roles.

Sharrock, Balliett, and McElroy sold homes in the cities of Mansfield, Marion, Galion, Plymouth, Shelby, and Bucyrus, Ohio. The sellers made fraudulent misrepresentations to the mortgage lenders by providing undisclosed down payment assistance to the buyers and by submitting fictitious purchase agreements and verifications of deposits. As a result, the sellers signed false settlement statements at closing, according to court documents.

Kightlinger acted as a straw buyer in purchasing a commercial building from David R. Sharrock in Mansfield, according to court documents.

This case is being prosecuted by Assistant United States Attorneys Vasile C. Katsaros and M. Kendra Klump, following an investigation by the Federal Bureau of Investigation.

A Toledo man was sentenced today to more than six years in prison for receipt of child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Bruce Omlor, age 50, was sentenced to 75 months in prison after pleading guilty earlier this year to one count each of receipt of child pornography. The conduct occurred between June 2009 and April 2012, according to court documents.

“This sentence should send a warning to those that would become involved with child pornography,” Dettelbach said.

“Today’s sentencing emphasizes the serious consequences that await those who are engaged in any way with child pornography,” said William Hayes, acting special agent in charge of HSI Detroit, which covers Michigan and Ohio. “This case was particularly troubling because of Mr. Omlor’s position of public trust as an educator. HSI will continue to work closely with its law enforcement partners to protect our children and ensure that online predators feel the full weight of the law.”

The investigating agency in this case is the United States Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Cleveland. The case is being prosecuted by Assistant United States Attorney Gene Crawford.

A Bowling Green man was ordered to pay more than $14,000 in restitution and sentenced to three years of supervised release after previously pleading guilty to illegally converting funds from the Department of Veterans Affairs, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Mickael C. Jones, age 36, illegally converted the money between May 2009 and December 2010, according to court documents.

Jones’ aunt died in May 2009. She had been receiving monthly VA surviving-spouse pension benefits. Not knowing of her death, the VA continued to make monthly direct deposits into her bank account, and Jones withdrew the money for his for his own use, according to the court documents.

The investigating agency in this case is the Department of Veterans Affairs, Office of Inspector General. The case is being handled by Assistant United States Attorney Thomas A. Karol.

A Strongsville company and the company owner’s wife were ordered to pay more than $330,000 for their roles in the dumping of a drum of liquid cyanide into a storm drain that flowed into the Rocky River, resulting in the death of more than 30,000 fish, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Kennedy Mint, Inc. was ordered to make a community service payment of $300,000 to the Cleveland Metroparks.  In addition, the Court ordered Kennedy Mint to pay restitution in the amount of $30,893.  The company previously pleaded guilty to violating of the Clean Water Act.

Teresina Montorsi, 74, was sentenced to one year of probation and ordered to pay a fine of $5,000.  She previously pleaded guilty to obstruction of justice.

“Clean, fresh water is Ohio’s greatest natural resource,” Dettelbach said. “We are satisfied that we were able to determine who put the cyanide into the river and killed tens of thousands of fish. The restitution from this case will be used to restock the river with fish, so that people can again enjoy the natural beauty of the Rocky River.”

“America’s waterways must be protected from illegal dumping of industrial waste,” said Randall K. Ashe, Special Agent in Charge of U.S. EPA’s criminal enforcement program in Ohio.  “The deliberate discharge of cyanide into a stream that runs through Rocky River Metropark is unconscionable, carrying severe consequences for wildlife and human health.  Today’s sentencing shows that those who skirt environmental laws to save the costs of safe and legal disposal will be held accountable.”

“We are pleased that the river will be restocked with fish,” Ohio Attorney General Mike DeWine said.  “This case demonstrates the devastating consequences that a single dumping can have on the environment.  We will continue to work with our Task Force partners to investigate and prosecute violations of environmental protection laws and those who attempt to cover up such violations.”

Company owner Renato Montorsi was indicted last year, but those charges were dismissed after he was found to be incompetent to stand trial.

Renato and Teresina Montorsi are married and live in Grafton, Ohio, according to public records.
Kennedy Mint will pay restitution of $30,893 -- $1 for every fish killed by the illegal discharge. The money will be paid to the Ohio Department of Natural Resources and used to restock the river with steelhead trout under the terms of the plea agreement.

Kennedy Mint will also pay $300,000 as part of community service.  The $300,000 will be paid to the Cleveland Metroparks.

Renato Montorsi owned and operated Kennedy Mint, which is located in Strongsville. Kennedy Mint specializes in collectible coins, but previously conducted metal plating and printing operations. The East Branch of the Rocky River is near the Kennedy Mint facility and storm water from that location’s parking lot flows into the East Branch of the Rocky River, according to court documents.

On April 16, 2012, Montorsi, with assistance from an employee, put two drums into a dumpster outside Kennedy Mint. On April 17, the waste hauling company declined to dispose of the contents of the dumpster because of the two drums inside, according to court documents.

On April 18, Montorsi moved the drums from the dumpster and placed them next to the storm drain in the Kennedy Mint parking lot, according to court documents.

Later that day, Montorsi used a hammer and sharp metal tool to punch a hole near the bottom of a drum that included a poison label featuring a skull and cross bones. After punching the hole, liquid cyanide in the drum was discharged into the storm drain and eventually the East Branch of the Rocky River, according to court documents.

Around April 22, the Ohio Department of Natural Resources received reports of dead fish in the East Branch of the Rocky River. Nearly every fish was dead downstream for the next three miles, according to the court documents.

The Ohio DNR counted approximately 30,893 dead fish in that three-mile stretch of the river, due to the discharge of cyanide, according to court documents.

On April 25, personnel from the Ohio Environmental Protection Agency asked to enter the Kennedy Mint facility to look for the drums, which they did not locate. After they left, Renato Montorsi, with help from Teresina Montorsi, moved two drums from Kennedy Mint to their residence so they would not be discovered if investigators returned, according to court documents.

On June 22, Teresina Montorsi gave permission to U.S. EPA agents and Ohio EPA investigators to search their home without a warrant, at which point the agents found the punctured drum and another drum that contained cyanide, according to court documents.

This case is being prosecuted by Special Assistant U.S Attorney Brad J. Beeson following an investigation by the following agencies: United States Environmental Protection Agency, Criminal Investigation Division; Ohio Bureau of Criminal Identification and Investigation; the Northeast Ohio Regional Sewer District; the Ohio Environmental Protection Agency, Office of Special Investigations; the Ohio Department of Natural Resources, Division of Wildlife, and the Cleveland Metroparks Rangers, all members of the Northeast Ohio Environmental Crimes Task Force.

An Ohio man pleaded guilty today to one count of violating the Clean Water Act, said Steven M. Dettelbach, the United States Attorney for the Northern District of Ohio.

Michael L. Guesman, 34, of Cortland, Ohio, admitted to illegally discharging brine and oil-based drilling mud into a stormwater drain on numerous occasions. The drain flowed into an unnamed tributary of the Mahoning River and ultimately into the Mahoning River, according to court documents.

“Clean, fresh water is our greatest resource in Northern Ohio,” Dettelbach said. “We will aggressively investigate and prosecute cases in which people pollute Ohio’s streams, rivers and lakes.”

“Opening a valve and dumping brine and oil-based drilling mud into a river is inexcusable,” Ohio Attorney General Mike DeWine said.  “We each have a role in keeping the state’s waters safe for all Ohioans and actions like this will not be tolerated.”

“The defendant admits that he dumped toxic, oil-based drilling mud into the Ohio River watershed.  It saved time and money, but it also seriously threatened environment, wildlife and human health” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio.  “Today’s plea should help protect the Mahoning and other rivers by deterring those who would turn America’s waterways into chemical dumping grounds.”

According to documents filed with the court related to the case:

Guesman was an employee of Hardrock Excavating LLC. The Hardrock facility was located in Youngstown, Ohio. The facility is within one mile of the Mahoning River.

Hardrock provided services to the oil and gas industry in Ohio and Pennsylvania, including the storage, treatment, and disposal of waste liquids generated from oil and gas well drilling operations. Prior to treatment or disposal these liquids were stored in tanks located at the facility. Each tank has an approximate capacity of 20,000 gallons.

Some of the waste liquids accepted by Hardrock included brine, flowback, and oil-based drilling mud. Brine is water with a high quantity of salt dissolved in it, flowback is the liquid left over as part of hydrofracturing ("fracking"), and oil-based drilling mud is a semi-solid slurry that contains petroleum products.

Starting on or about December 12, 2012, at the direction of the owner of Hardrock, Benedict W. Lupo, Guesman emptied some of the waste liquid being stored at the facility into a nearby stormwater drain. Lupo further directed that Guesman conduct this activity only after no one else was at the facility and after dark.

Over the next two months, on numerous occasions, at the direction of Lupo, Guesman emptied some of the waste liquid being stored at the facility into the nearby stormwater drain using a hose.

On or about January 31, 2013, was the last time Guesman emptied some of the waste liquid being stored at the facility into the nearby stormwater drain. The waste liquid emptied that night included a mixture of brine and oil-based drilling mud, according to court documents.

In total, Guesman emptied tanks at the direction of Mr. Lupo on approximately 24 different nights.
A sample of the discharge on the night of January 31, 2013, was obtained and analyzed. Analysis of the sample, which was black in color, showed the presence of several hazardous pollutants, including benzene and toluene.

The stormwater drain, into which the waste liquids had been discharged, flowed into an unnamed tributary of the Mahoning River, which is a waterway of the United States.

Federal charges against Lupo and Hardrock remain pending. Both were indicted earlier this year on one count of violating the Clean Water Act.

Guesman is scheduled to be sentenced on November 15, 2013.

The statutory maximum for violating the Clean Water Act is for individuals is three years in prison, one year of supervised release and a fine of $50,000 per day of violation or $250,000, whichever is larger. For corporations, the statutory maximum is five years of probation and a fine of $50,000 per day of violation or $500,000, whichever is larger.

This case is being prosecuted by Special Assistant U.S. Attorney Brad Beeson following an investigation by the Ohio EPA, Ohio Department of Natural Resources, U.S. EPA, the Ohio Bureau of Criminal Investigation, the Youngstown Department of Public Works and the Youngstown Fire Department.

Counterfeiting charges were filed against a Parma man, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

A grand jury returned a two-count indictment charging Joshua A. McKnight, 25, with conspiracy to possess and pass counterfeit obligations of the United States and possessing counterfeit obligations of the United States.

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

The case is being prosecuted by Assistant United States Attorneys Margaret A. Sweeney and Edward F. Feran, following an investigation by the United States Secret Service and the Ohio State Highway Patrol.

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.

Brian Meck, 25, of New Philadelphia, Ohio, was charged with production of child pornography, receipt and distribution of visual depictions of real minors engaged in sexually explicit conduct, and possession of child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.  

The indictment charges that between the dates of August 31, 2011 and September 30, 2011, Meck produced visual depictions of a minor engaged in sexually explicit conduct, using materials that were mailed, shipped, or transported in or affecting interstate or foreign commerce. 

During that same date range, Meck received and distributed in interstate and foreign commerce, numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct.  In addition, on or about August 2, 2013, Meck possessed an Apple laptop computer that contained child pornography, which had been shipped and transported, or was produced using materials that had been shipped and transported, in interstate and foreign commerce by any means including by computer, 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 Northern District of Ohio Assistant United States Attorney Carol M. Skutnik.  The case was investigated by the Federal Bureau of Investigation, Canton Resident Agency.

An indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that Joseph D. Weiss, 44, of Euclid, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.

The indictment charges that from on or about March 4, 2013, through on or about March 15, 2013, Weiss knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct.  On March 22, 2013, images of child pornography were also found on his external hard drive.

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 Ohio Internet Crimes Against Children Task Force and the Euclid Police Department.

An indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

A Cleveland man was indicted on charges related to the robbery of a Shaker Heights bank, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Charles D. Moore, 28, was indicted on one count of armed bank bobbery. This charge arises from the July 9, 2013, bank robbery of the PNC Bank at 20711 Chagrin Boulevard. in Shaker Heights, Ohio, when Moore held the bank manager at gunpoint and stole approximately $46,000 from the bank's tellers, according to the indictment.

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

The case is being prosecuted by Assistant United States Attorneys Margaret A. Sweeney following an investigation by the Cleveland and Pittsburgh Field Offices of the Federal Bureau of Investigation and the Shaker Heights Police Department.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that Steven L. Lantz, 30, of Cleveland, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.

The indictment charges that from on or about June 30, 2012, through on or about October 15, 2012, Lantz knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct.  On October 31, 2012, images of child pornography were also found on his Toshiba laptop computer.

If convicted, the sentence in this case will be determined by the Court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation.  In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik.  The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement.

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.

An Akron woman was convicted of tax crimes for failing to report more than $200,000 in income, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Kelly Prigmore, 43, was found guilty following a trial on two counts of making and subscribing false federal income tax returns for the years 2006 and 2007.

Sentencing is scheduled for Dec. 12.

Prigmore worked as a self-employed home health care provider for a client who paid her for live-in 24 hour services. Prigmore filed joint personal income tax returns on which she omitted approximately $209,601 of her home health care service income, according to court documents.

For 2006, she reported total income of $8,600 and omitted additional income of approximately $96,806. For 2007, she reported total income of $8,990 and omitted additional income of approximately $112,795, according to court documents.

This case is being prosecuted by Special Assistant United States Attorney Perry D. Mastrocola and Assistant United States Attorney John Siegel, following an investigation by the Internal Revenue Service, Criminal Investigation, Akron, Ohio.

A Cleveland-area nurse was sentenced to 12 years in prison today for his role in a murder-for-hire plot and related crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Andrew Martin, age 23, of Bristolville, pleaded guilty earlier this year to use of an interstate commerce facility in the commission of murder-for-hire, conspiracy to commit wire fraud and obtaining individually identifiable health information.

“This sentence underscores the seriousness of this defendant’s conduct,” Dettelbach said. “He sought to have a woman killed over a home in Lakewood. The community is fortunate that law enforcement was vigilant and stopped this plot.”

“Working with Lakewood police and fire and our other law enforcement partners, an individual was brought to justice who attempted to prey on an elderly person, both financially and physically,” said Lance Kimmell, Group Supervisor for the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Cleveland office.

U.S. District Judge Christopher Boykok also ordered Martin to pay more than $83,000 in restitution.

Martin worked as a registered nurse at a local hospital. He and another person (identified as D.S., who worked in the business of residential property repair and rehabilitation) conspired to take ownership and control of the house at 17225 Clifton Boulevard in Lakewood, which was owned by a person identified as G.W. who was a patient at the hospital where Martin worked, according to court documents.

This would be done, in part, by Martin accessing G.W.’s medical records. He passed that information on to D.S., who fraudulently maintained he had a personal relationship with G.W., which caused the homeowner to transfer ownership of the Clifton property prior to the G.W.’s death, according to court records.

On Nov. 21, 2011, Martin and D.S. caused a fraudulent quitclaim deed to be filed with the Cuyahoga County Recorder, which transferred ownership to D.S. D.S. had fraudulently represented to others that he had a personal relationship with G.W. based on medical records accessed by Martin, according to court documents.

A woman identified as J.C. was the sister of G.W. and the administrator of his estate. On Nov. 21, 2011, Martin and D.S. met J.C. at the property, where they maintained D.S. was the rightful owner, according to court documents.

In February 2012, Martin prepared D.S. for a deposition relating to the transfer of the Clifton property by providing D.S. with personal information about G.W. that Martin learned from accessing his medical records at the hospital, according to court documents.

On November 5, 2012, Martin used a telephone in connection with his intention that J.C. be murdered in exchange for the promise of $10,000, according to court documents.

Martin solicited a patient at the hospital to kill J.C. because “she has been trying to mess up my life” and then followed up with telephone calls which related to the solicitation. Martin wanted the patient to “put four in her head and make it look like a robbery,” according to court documents.

This case is being prosecuted by Assistant United States Attorneys Henry F. DeBaggis and Kelly L. Galvin following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Maple Heights Police Department and Lakewood Police and Fire Departments.

Two Canton men were charged in U.S. District Court with conspiracy to possess with intent to distribute marijuana following the seizure of a semi tractor-trailer loaded with about 1,700 pounds of marijuana destined for Cleveland, law enforcement officials said.

Charged are Ray Sanchez, 46, and Andy Fagan, 29, both of Canton.

According to an affidavit filed in the case:

Sanchez contacted a counterpart in Texas this month and arranged for a large amount of marijuana to be shipped to Ohio. The next day, Fagan sent $20,000 by Federal Express to the Texas connection, which law enforcement officers suspected related to the shipment of marijuana from Texas to Cleveland.
Sanchez then indicated the marijuana would arrive on Aug. 15.

On the morning of Aug. 15, law enforcement officials learned that the shipment of marijuana was intercepted by Homeland Security Investigations agents when the semi crossed the border at Laredo, Texas. The semi contained 1,718 pounds of marijuana hidden in recycling equipment and addressed to Fagan in Ohio.

Sanchez and Fagan were subsequently arrested.

The case is being investigated by a High Intensity Drug Trafficking Agency Task Force comprised of members of the Cleveland Division of Police, Independence Police Department, Broadview Heights Police Department, Brooklyn Police Department, Brook Park Police Department, Cuyahoga County Sheriff’s Office, Federal Bureau of Investigation and Homeland Security Investigations. The Northern Ohio Law Enforcement Task Force also assisted. The case is being prosecuted by Assistant United States Attorney Vasile Katsaros.

A charge is not evidence of guilty. A person is considered innocent until proven guilty and it is the government’s burden to prove guilty beyond a reasonable doubt.

The investigation is ongoing.

An Ohio man was fined $8,000 and ordered perform community service after previously pleading guilty to falsely labeling a package containing wildlife items, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio

Mark St. John, 53, of Northwood, Ohio, falsely labeled an elephant ivory shipment destined for an overseas buyer on June 1, 2011, according to court documents.

He also forfeited his collection of more than 700 pieces of ivory as part of the plea, according to court documents.

The investigating agency in this case is the United State Fish & Wildlife Service, Delaware, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.

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.

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.

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.

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 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 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.

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.

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 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. 

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.

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.

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 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.

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.

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 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.

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.

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.

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.

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 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.

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.

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.

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.

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.