Northern District of Ohio
Press releases recorded for this federal judicial district.
Nurse Pleaded Guilty in Murder-for-Hire PlotRead the Press Release
A Bristolville man pleaded guilty today to crimes for his role in a murder-for-hire plot, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Andrew Martin, age 23, pleaded guilty 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 defendant sought to have a woman killed over a home on Clifton Boulevard,” Dettelbach said. “The community is fortunate that law enforcement was vigilant and stopped this plot before it got too far.”
Martin is scheduled to be sentenced by U.S. District Judge Christoper Boyko on July 18.
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 Department.
Marion Man Charged with Evading Nearly $900,000 in TaxesRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced the filing of an information charging Scott A. Fischer, age 54, of Marion, Ohio, with tax evasion for calendar years 2006 through 2010.
The charges allege that Fischer evaded a total of $899,781.00 in federal income tax.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Internal Revenue Service Criminal Investigation Division. The case is being handled by Assistant United States Attorney Joseph R. Wilson.
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.
Florida Man Pleaded Guilty to Conspiracy Involving Iraqi CurrencyRead the Press Release
A Florida man pleaded guilty today in the U.S. District Court to crimes related to a scheme to defraud investors in the sale of Iraqi dinar currency and two non-existent hedge funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy A. Enstrom, Acting Special Agent in Charge, IRS-Criminal Investigation, Cincinnati field office.
Rudolph M. Coenen, age 47, of Jacksonville, Florida, pleaded to one count of conspiracy to commit wire fraud, one count of wire fraud and five counts of money laundering before U.S. District Court Judge Jack Zouhary.
Coenen admitted to entering into a conspiracy with Bradford L. Huebner, Charles N. Emmenecker and Michael L. Teadt to defraud investors through the promotion and sale of Iraqi dinar currency and “placements” in two non-existent hedge funds. Coenen operated a business known as Bayshore Capital Investments to collect funds related to the non-existent hedge funds for himself, Huebner, Emmenecker and Teadt, according to court documents.
Huebner developed and provided prospective investors with professional literature and information regarding the non-existent hedge funds in order to make them appear legitimate. The marketing strategy developed by Huebner and Coenen included requiring prospective members in the non-existent hedge funds to join the BH Group and purchase a certain quantity of Iraqi dinar from Huebner, according to court documents.
Approximately $722,415.00 was solicited from prospective investors, according to court documents.
Coenen also admitted he was not a former Marine who served in the first Gulf War, he had not been wounded in combat and he was never awarded a Purple Heart. Coenen also admitted the defendants knowingly and intentionally made other false and misleading claims to investors in furtherance of the scheme to defraud, according to court documents.
Coenen and three others were indicted in September 2012. Charges against the other co-defendants are pending.
Assistant United States Attorneys Joseph R. Wilson and Gene Crawford are representing the United States in this case, which was investigated by special agents of IRS, Criminal Investigation.
Dozens Indicted on Firearms and Narcotics Charges in Warren; 155 Firearms SeizedRead the Press Release
Nineteen separate federal indictments were unsealed today, charging 55 people with various violations of federal narcotics and/or firearms laws in and around Warren, Ohio, law enforcement officials announced.
At the same time, an additional 42 people were charged in state court on similar charges. Overall, 155 firearms were taken off the streets, either by being purchased or seized.
The conduct laid out in the indictments include a conspiracy involving 21 people who are accused of bringing large quantities of heroin, cocaine and crack cocaine from Detroit to Warren; another that brought heroin from Columbus to Warren and Dayton; others that sold Oxycodone, Hyrdrocodone, heroin and crack cocaine; and multiple indictments of people accused of illegally possessing and selling firearms.
“These cases have taken an arsenal off the streets of Warren and cut off several pipelines of heroin, cocaine and other illegal drugs,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “It’s yet another demonstration of what happens when federal and local law enforcement work together for the good of the public.”
“The job of protecting communities like Warren from violent crime as well as from violent criminals remain at the forefront for ATF and from law enforcement at all levels,” said ATF Special Agent in Charge Robin Shoemaker, Columbus Field Division. “We can assure you that these types of aggressive, proactive investigations will continue.”
DEA Special Agent in Charge Robert L. Corso said: “This investigation exemplifies the success that can be achieved when local, state and federal law enforcement work together. Drug dealers are a violent group, and the nexus between drugs, guns and violence is clear in this case. The removal of the drugs, guns and the people who sell them, from the streets of Warren is a significant victory for law enforcement and will benefit those who live and work in that community.”
“Those arrested today brought more than just drugs and guns into the Youngstown area,” said Attorney General Mike DeWine. “Their operation brought more violent crime into our neighborhoods as well, and we will continue to work with state, local, and federal law enforcement to do everything we can to keep our communities safe.”
“Today’s arrests are the result of the law enforcement community answering to the request and needs of the City of Warren,” said Warren Police Chief Timothy Bowers. “Amazing things can happen when we work together for a common goal.”
Most of the alleged crimes took place last year. A full list of people charged in federal court, with their hometowns and ages, is below.
In the case of United States v. Valentino Thomas, Sr. et. al., a 99-count indictment was filed charging 21 people with engaging in a conspiracy to distribute heroin, crack cocaine and cocaine. Thomas, Sr. obtained the drugs from suppliers in Detroit and then sold them to Anthony Ector, who in turn sold the drugs to at least 15 dealers in Warren, according to the indictment.
As part of the conspiracy, Lewis Powell II, of Warren, is charged with 14 counts of illegally possessing firearms, and faces additional charges for having body armor and firearms with obliterated serial numbers, according to the indictment.
Prosecutors are seeking to forfeit more than $31,000 and six firearms seized in that investigation.
In the case of United States v. Jamie Hancock, et. al., a 49-count indictment was filed charging nine people with engaging in a conspiracy to distribute heroin. Hancock, Cornelius Butler III and Jovan Hancock purchased kilogram quantities of heroin from a supplier in Columbus, and then sold the heroin to other dealers in Warren, Dayton and elsewhere, according to the indictment.Prosecutors are seeking to forfeit more than $54,000 and a Honda motorcycle seized in that investigation.
Ricky and Henry Walker, both of Warren, are charged with conspiracy to deal firearms. The Walkers operated a flea market in Warren and purchased firearms, then bartered with flea market customers and sold firearms in exchange for items such as furniture, according to the indictment.
For example, Henry Walker sold nine firearms to a flea market customer in exchange for furniture on Sept. 7, 2011. One month later, he sold 22 firearms and ammunition to a customer in exchange for furniture and other property, according to the indictment.
Antonio Tucker, 22, of Warren, is charged with six counts – three charges of distributing Oxycodone or Hydrocodone and three firearms charges, including unlawfully distributing firearms, receiving or selling a stolen firearm and having a firearm with an obliterated serial number.
Margaret Devore and David Martin are charged with distributing Oxycodone and heroin and possessing a Norinco, model SKS rifle, despite both having previous felony convictions.
Donta Murray is charged with distributing crack cocaine and possessing two shotguns, despite a previous felony conviction.
Overall, 21 people face federal firearms charges as part of the indictments unsealed today.
If convicted, the defendants’ sentences will be determined by the court after review of the federal sentencing guidelines and factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations.
The cases are being prosecuted by Assistant U.S. Attorneys Daniel J. Riedl and David M. Toepfer, following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the TAG Task Force, the Ohio Bureau of Criminal Investigation and Identification, the Warren Police Department, the Trumbull County Sheriff’s Office, the U.S. Marshal’s Service, the Youngstown Police Department and the Ravenna Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
U.S. v. Valentino Thomas, Sr. et.al.
All 21 defendants are charged in count 1 with conspiracy to possess with intent to distribute heroin, crack cocaine and cocaine.
Valentino Thomas, Sr., 41, Detroit, distribution of heroin (x3), use of a phone in commission of a felony.
Anthony L. Ector, Jr., 29, Warren, distribution of heroin (x21), use of a phone in commission of a felony (x21).
Derrick Peete, 22, Detroit, distribution of heroin (x2), use of a phone in commission of a felony.
Lewis C. Powell II, 33, Warren, distribution of heroin (x4), distribution of crack cocaine, felon in possession of a firearm (x14), possession of a firearm with an obliterated serial number (x2), unlawful dealing of firearms, felon in possession of body armor, use of a phone in commission of a felony.
Bobby Covington, 26, Warren, distribution of heroin (x3), use of a phone in commission of a felony (x4).
Brian Thomas, 31, Detroit, distribution of heroin (x2).
Quintus Sellers, 24, Warren, distribution of heroin (x3).
Hosea Willis, 21, Warren, distribution of heroin (x3), use of a phone in commission of a felony.
Valentino Thomas, Jr., 22, Warren, distribution of heroin (x2), use of a phone in commission of a felony.
Jawan Thomas, 40, Warren, distribution of heroin (x2).
Bret Jones, 30, Bristolville, distribution of heroin (x4), interstate travel in commission of a felony.
Chance Wells, 22, Warren, distribution of heroin, use of a phone in commission of a felony (x3).
Bryan Sennyk, 33, Warren, use of a phone in commission of a felony (x3).
Toni Angelo, 49, Warren, distribution of crack cocaine, use of a phone in commission of a felony (x5).
Tracie Liptrot, 28, distribution of heroin (x2).
James Cohen, 24, Detroit, distribution of crack cocaine, felon in possession of a firearm.
Ahman McCollum, 28, Warren, use of a phone in commission of a felony (x3).
Stephanie McMahan, 29, Warren, use of a phone in commission of a felony (x3).
Sidney McMahan, 30, Warren, use of a phone in commission of a felony (x4).
Valerie Maddox, 30, Ravenna, use of a phone in commission of a felony (x2)
Benjamin Blakeley IV, 26, use of a phone in commission of a felony (x3).U.S. v. Jamie Hancock et. al.
All nine defendants charged in count 1with conspiracy to possess with intent to distribute heroin.
Jamie Hancock, 27, Dayton, distribution of heroin (x14), use of a phone in commission of a felony (x26).
Cornelius Butler III, 32, Warren, distribution of heroin (x10), use of a phone in commission of a felony (x9).
Jovan Hancock, 30, Dayton, use of a phone in commission of a felony (x4).
Lakeia Harris, 30, Dayton, use of a phone in commission of a felony (x6).
DeShawn Brown, 36, Warren, distribution of heroin (x3).
Charles Moore II, 31, use of a phone in commission of a felony (x2).
Wayne Sims Jr., 31, Columbus, use of a phone in commission of a felony (x4).
Vincent Croff, 29, Warren, use of a phone in commission of a felony (x2).
April Polk, 29, Columbus, use of a phone in commission of a felony (x5).U.S. v. Marcus Hemmingway et. al.
All five defendants charged in count 1 with conspiracy to possess with intent to distribute crack cocaine.
Marcus Hemmingway, 36, Warren: distribution of crack cocaine (x5), felon in possession of a firearm.
Darnell Defrance, 26, Warren, distribution of crack cocaine (x10).
Timothy Hooks, 45, Hermitage, Penn. distribution of crack cocaine.
Brittany Swogger, 24, Warren distribution of crack cocaine (x4).
James Court, Sr., 56, Girard, distribution of crack cocaine.Other cases:
Leon Glover Jr., 20, of Warren: unlawful dealing in firearms, possession of a stolen firearm.
John Wayne Provitt Jr., 23, Warren: conspiracy to possess with intent to distribute crack cocaine, distribution of crack cocaine (x8).
Derrick McCullough, 32, Youngstown: conspiracy to possess with intent to distribute crack cocaine, distribution of crack cocaine.
Antonio Tucker, 21, of Warren: distribution of Oxycodone (x3), unlawful dealing in firearms, possession of a stolen firearm, possession of a firearm with an obliterated serial number.
Dwayne Bruce, 23, Warren: felon in possession of ammunition.
Margaret Devore, 32, Ashtabula: distribution of Oxycodone (x3), felon in possession of a firearm.
David Martin, 28, Warren: felon in possession of a firearm.
George Gutierres, 23, Youngstown: felon in possession of a firearm.
Brian Henry, 18, Warren: felon in possession of a firearm.
Hector Hernandez, 45, Cortland: felon in possession of a firearm (x2).
Calvin Cole, 51, Warren: felon in possession of a firearm.
Edward Lightning, 29, Youngstown: felon in possession of a firearm.
William McCree: 34, Warren: prohibited person in possession of a firearm.
Allen McGill, 26, Warren: distribution of cocaine (x3), distribution of crack cocaine, prohibited person in possession of a firearm (x2).
Donta Murray, 36, Warren: distribution of crack cocaine, felon in possession of a firearm (x2).
Ted Murray, 39, Warren: felon in possession of a firearm.
John Slade, 23, East Liverpool, felon in possession of a firearm.
Ricky Walker, 54, Warren: conspiracy and dealing firearms without a license, felon in possession of a firearms, possession of an unregistered firearm, possession of a firearm with an obliterated serial number.
Henry Walker, 60, Warren: conspiracy and dealing firearms without a license, aiding and abetting a felon in possession of a firearms, possession of an unregistered firearm, possession of a firearm with an obliterated serial number.
Goodwin Lofton, 48, Warren: felon in possession of a firearm.Cuyahoga Falls Man Sentenced to Three Years in Prison for Possession of Pipe Bombs, Other OffensesRead the Press Release
A Cuyahoga Falls man was sentenced to three years in prison after previously pleading guilty to possessing five pipe bombs, a silencer, a machine gun and marijuana, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
David Dougherty, age 49, pleaded guilty in January to one count each of unlawful possession of destructive devices (five pipe bombs), possession of a firearm (the silencer), possession of a machine gun and one count of manufacturing of marijuana with intent to distribute.
On Oct. 20, 2012, Dougherty had five destructive devices consisting of a pipe, end caps, explosive powder and a pyrotechnic fuse, according to the court documents.
He also possessed a silencer, a STEN 9 mm submachine gun with no serial number and marijuana, according to the court documents.
The case was handled by Assistant United States Attorney Kelly Galvin following investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Summit Count Bomb Squad and the Cuyahoga Falls Police Department.
Indiana Man Sentenced to 20 Years in Prison for Religiously Motivated Attack on Toledo-Area MosqueRead the Press Release
An Indiana man was sentenced to 20 years in prison for hate crimes stemming from the arson of the Islamic Center of Greater Toledo, law enforcement officials announced today.
U.S. District Judge Jack Zouhary sentenced Randolph Linn, 52, of St. Joe, Indiana. Linn pleaded guilty in December to three counts: (1) intentionally defacing, damaging and destroying religious real property because of the religious character of that property; (2) using fire to commit a felony and (3) using and carrying a firearm to commit a crime of violence.
“Defendant Randy Linn attempted to burn down a mosque because of the religion of its members,” said Deputy Assistant Attorney General for the Civil Rights Division Roy L. Austin Jr. “The Civil Rights Division will continue to partner with the FBI and U.S. Attorney’s Offices around the country to ensure that anyone who desecrates or burns a place of religious worship because of the creed practiced there is brought to justice.”
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, said: “Hate crimes like this seek to damage more than buildings, they take aim at our American way of life. But today’s 20-year prison sentence and the coming together of this community to support our Muslim neighbors show that our freedoms are stronger and more resilient than this man’s hatred.”
Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, said: “We are pleased that Randall Linn got a significant sentence for his destructive act of setting fire to a sacred place of worship. The FBI, along with its federal, state, and local law enforcement partners, remains committed to protecting the rights of all citizens to practice their chosen religion by enforcing the laws that defend those liberties.”
“This sentence is the culmination of the tireless efforts of so many agencies to bring this case to justice,” said Robin Shoemaker, Special Agent in Charge, Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives. “Criminal damage to a house of worship is taken very seriously by ATF.”
According to court documents, Linn left his home on Sept. 30, 2012, in a red four-door Chevrolet Sonic. Inside the vehicle were numerous firearms and three red gas cans.
Linn stopped at a gas station near Perrysburg, Ohio, and filled the three gas can, then drove to the Islamic Center of Greater Toledo. Linn made numerous efforts to enter the Islamic Center before gaining entry. He walked through several rooms with a handgun in his left hand before exiting, then returning with a red gas can, according to court documents.
Linn then entered the prayer room on the second floor and poured gasoline on the prayer rug, a large Oriental-style rug used by members of the Islamic Center during prayer services. He then set fire to the prayer rug, according to court documents.
Linn acknowledges he intentionally set the fire because of the religious character of the Islamic Center property, according to court documents.
Linn agrees to pay restitution and understands that the amount may exceed $1 million due to the amount of fire and water damage sustained by the Islamic Center, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Bridget M. Brennan, Ava Dustin and Special Assistant U.S Attorney Gwen Howe-Gebers.
This case was investigated by the Perrysburg Township Police Department, the State of Ohio Fire Marshal, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation.
Orange, Ohio, Man Pleaded Guilty to Overbilling Medicaid and Medicare by $2.5 MillionRead the Press Release
A man who lives in Orange, Ohio, admitted to overbilling Medicaid and Medicare by more than $2.5 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Divyesh “David” C. Patel, age 39, pleaded guilty to one count of conspiracy to commit health care fraud and four counts of health care fraud. Patel is expected to be sentenced later this year.
“This defendant enriched himself and his company by flouting rules designed to protect the public,” Dettelbach said.
“Mr. Patel defrauded the tax payers by scamming Medicaid and Medicare,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “Waste, fraud and abuse take critical resources out of our health care system and contribute to the rising cost of health care for all Americans.”
Patel was the owner and president of Alpine Nursing Care, Inc., located at 4753 Northfield Road, Suite 5, North Randall, Ohio, employed Belita Mable Bush, as the office manager and director of provider services from June 1, 2006 through October 18, 2009, according to court documents.
Patel and Alpine employed Bush to prepare and submit the billings to Medicaid and Medicare for reimbursement for services provided by Alpine as a home health care provider, even though Patel knew that Bush had been previously convicted of a health care-related felony that excluded Bush from being involved in any way with Alpine’s Medicaid and Medicare billings, according to court documents.
In addition to the fact that Bush was excluded from handling Alpine’s medical billings, Patel was aware that Bush falsified documents related to health care services allegedly provided to home health patients where the services were never provided, or were provided by home health aide that had previous criminal convictions that excluded them from providing health services in people’s houses, according to court documents.
As a result of the conspiracy, Medicaid and Medicare suffered a loss of approximately $2,564,392, according to court documents.
Bush was convicted on related charges and is scheduled to be sentenced May 28.
The defendant's sentence will be determined by the court after review of factors unique to this case, including any prior criminal record, 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.
This case is being prosecuted by Assistant U.S. Attorney Mark S. Bennett and Special Assistant General Constance A. Nearhood, following an investigation by the Office of the Inspector General, Department of Health and Human Services, Cleveland, Ohio; Ohio Attorney General’s Office, Medicaid Fraud Control Unit; and the Federal Bureau of Investigation, Cleveland, Ohio.
If you suspect health care fraud, waste or abuse, please report it by calling HHS Office of Inspector General at 800-447-8477, the Centers for Medicare & Medicaid Services at 800-633-4227, or the FBI Cleveland Field Office at (216) 522-1400. To learn more about health care fraud prevention and enforcement go to www.medicare.gov.
Cuyahoga Falls Man Sentenced to Prison for Trafficking in Counterfeit PursesRead the Press Release
Ronald Jason Azar, age 34, of Cuyahoga Falls, Ohio, was sentenced to 18 months in prison in connection with his recent conviction for trafficking in more than $180,000 worth of counterfeit merchandise, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Azar pleaded guilty in October to a one-count indictment charging him with trafficking in merchandise containing counterfeit trademarks, logos or labels.
On or about April 27, 2011, Azar intentionally trafficked and attempted to traffic in approximately 104 counterfeit designer handbags which, if genuine, were valued at approximately $183,488, according to court documents.
The handbags included 12 Gucci, 23 Coach, 17 Louis Vuitton, five Versace, five Chanel, two Marc Jacobs, three Dooney & Burke, six Prada, eight Fendi, seven Chloe, seven Jimmy Choo and nine Dolce & Gabbana handbags, which contained counterfeit marks, logos, labels, hang tags, patches, stickers, emblems, holograms and packaging. The marks on the merchandise were identical to and substantially indistinguishable from marks used on genuine merchandise, and were in use and registered for such goods on the principle register of the United States Patent and Trademark Office, according to court documents.
The use of such counterfeit and spurious marks was likely to cause confusion, mistake or to deceive, according to court documents.
This case was prosecuted by Assistant U.S. Attorney Robert W. Kern, Cybercrime Coordinator for the Cleveland U.S. Attorney’s Office, following an investigation by the Cleveland Office of the Department of Homeland Security, Office Immigration and Customs Enforcement.
People Reminded of Stiff Penalties for Violating Tax Laws as Filing Deadline ApproachesRead the Press Release
Several Ohioans have been found guilty and sentenced for violating federal tax laws over the past few months, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Denise Rocawich, Acting Special Agent in Charge of the IRS-Criminal Investigation, Cincinnati Field Office.
As the 2013 tax filing deadline approaches, these cases serve as reminders that there are civil and sometimes criminal penalties to filing erroneous tax returns.“Tax day is not fun, but the vast majority of Americans who properly report and pay their fair share need to know that we will aggressively prosecute those who shirk or flaunt their obligations,” Dettelbach said.
“With the April 15 tax deadline looming, it is important for people to have confidence that when they pay their taxes, their neighbors and competitors will do the same,” Rocawich said. “Every time someone in America cheats on their taxes, there are over 300 million victims.”
Details on a few cases over the past year:
Nelida I. Velasco of Chardon was sentenced last year to more than three years in prison for conspiracy to make false claims, making false claims, misuse of Social Security account numbers, and aggravated identity theft. A co-defendant, David T. Tufts, also of Chardon, was previously sentenced to 4 years imprisonment. Both pleaded guilty to the charges, which involved the filing of at least 35 false tax returns claiming at least $155,000 in false refund claims using stolen identification information of the 35 purported claimants.
Aesha Johnson of Beachwood was sentenced last year to 21 months in prison for making false income tax refund claims totaling approximately $84,244 for tax clients.
John W. Hufgard of Bath was sentenced in February to 18 months imprisonment for attempting to evade approximately $397,659 of his personal income tax liabilities for 2007 through 2009. The taxes were owed on unreported income Hufgard received from selling manufacturing racks to metal scrap dealers for cash. Hufgard pleaded guilty to the charges in November 2012.
Steven R. Hinz, Heather L. English, Patricia A. Polk, and William E. Phillips, III were sentenced in earlier this year prison for conspiracy and making false claims for income tax refunds. Led by Hinz, the conspiracy involved filing at least 17 false tax returns claiming refunds totaling more than $3 million based on fictitious amounts of tax withholdings under the so-called “OID process.” All four defendants pleaded guilty in October 2012. Hinz, formerly of Youngstown, was sentenced to nine years in prison, while English was sentenced to 2 1/2 years.
Brandon M. Mace of Canton pleaded guilty in February to two counts of making false claims for income tax funds totaling nearly $5.5 million. Mace prepared and filed false tax returns containing those claims while incarcerated in Ohio on state charges. Mace is scheduled to be sentenced in May.
Two More Indicted for Conspiracy Related to Cuyahoga Heights School DistrictRead the Press Release
A five-count indictment was filed charging David Donadeo, age 39, formerly of Broadview Heights, Ohio, and Dennis Boyles, age 39, of Garfield Heights, Ohio, with conspiracy to commit mail fraud and conspiracy to commit money laundering, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Boyles was also charged with two counts of tax evasion and one count of making or subscribing a false tax return.
Joseph Palazzo (who was previously charged, see Case No. 1:13cr167, United States District Court for the Northern District of Ohio) during the period in question was employed by the Cuyahoga Heights School District (the “District”) as its Information Technology (“IT”) Director. Palazzo was responsible for managing the District’s IT Department, which included purchasing hardware and software and making other IT expenditures to benefit the District and its students, according to the indictment.
Palazzo, Donadeo, Boyles, and others devised a scheme to divert millions of dollars of District funds to their own personal use. As a result of the conduct of Palazzo, Donadeo, Boyles, and others, the District was defrauded and sustained a total loss of at least $3,333,448, according to the indictment.
This scheme involved Palazzo submitting to the District for payment false invoices that purported to be for IT-related goods and services purchased from legitimate companies by the District’s IT Department to benefit the District. Palazzo represented that the invoices he submitted were legitimate, and he approved the false invoices himself or forged the signature of another in the approval section, according to the indictment.
However, in truth and in fact, these invoices were for services never performed, fictitious software and hardware, and software and hardware never received or already purchased by the District from another source. The companies named on the invoices did not supply such goods to or perform such services for the District and were nothing more than “shells,” according to the indictment.
Relying on these invoices, the District issued checks to these shell vendor corporations, which were established and owned by Donadeo, Boyles, and another person working with Palazzo to defraud the District. Donadeo, Boyles and the other shell vendor corporation owner kept approximately half of the stolen money themselves and funneled the remainder of the money back to Palazzo for his personal use, according to the indictment.
In addition to participating in the foregoing scheme to defraud the District, Boyles failed to report his share of the money that he received from the scheme on his tax returns for the tax years 2008, 2009, and 2010. As a result, he failed to pay a total of $30,064 in taxes that was due and owing for those years, according to the indictment.
This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation, both located in Cleveland, with the assistance of the State of Ohio Auditor’s Office, the Cuyahoga County Sheriff’s Office, and the United States Postal Inspection Service.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorney Rebecca Lutzko, Special Assistant United States Attorney Perry Mastrocola, and Assistant United States Attorney James L. Morford.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mansfield Man Sentenced to More Than Four Years in Prison for Making Bomb ThreatsRead the Press Release
A Mansfield man was sentenced to more than four years in prison for making threats to courthouses in Nebraska, Washington, Oregon, Tennessee and Mississippi, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation for the Northern District of Ohio.
Lonny L. Bristow, 39, pleaded guilty today to with six counts of willfully making threats. He admitted to calling in bomb threats in November and December 2012.
U.S. District Judge Dan Aaron Polster sentenced Bristow to 51 months in prison.
Bristow made the threats using prepaid calling cards that purchased at the Wal-Mart Supercenter in Upper Sandusky, Ohio, according to court documents. Bristow had purchased several pre-paid calling cards and those pre-paid calling cards were linked to the false bomb threats placed to various courthouses spanning five states, according to court documents.
"These threats caused fear and panic throughout courthouses around the country," Dettelbach said. "The FBI did a tremendous job in piecing this case together."
"Lonny Bristow induced panic in hundreds of people across several states who were simply trying to do their work," Anthony said. "The FBI will continue efforts to aggressively pursue charges against anyone, such as Mr. Bristow, who chooses to make reckless and malicious bomb threats."
The case is being prosecuted by Assistant United States Attorney Thomas Getz after an investigation by agents of the Federal Bureau of Investigation.
Lorain Man Indicted Following Seizure of 40 FirearmsRead the Press Release
A Lorain man was indicted today on charges of being a felon in possession of firearms after he was found with 40 handguns and rifles, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jose Romero, age 32, was found to have 40 pistols, rifles and revolvers despite having a 2005 conviction in Lorain County for domestic violence, according to the indictment.
“This office places a high priority on keeping firearms out of the hands of those who are forbidden by law from obtaining them,” Dettelbach said. “Whether it is a person using a gun to commit a violent crime, a felon illegally obtaining a firearm or a straw purchaser trying to circumvent the law, we will aggressively pursue those who would violate our nation’s firearms laws.”
Romero told a confidential informant that he was interested in purchasing large numbers of firearms in an effort to influence their availability in Lorain, according to court documents.
The information indicated that Romero stores many of his firearms inside a safe inside his grandmother’s residence on Charleston Avenue in Lorain. Law enforcement officers subsequently searched Romero’s home on East 31st Street and the Charleston Avenue home on Feb. 26, 2013, according to court documents.
Investigators found firearms, marijuana and cocaine at the East 31st Street residence and a safe with 28 firearms at the Charleston Avenue residence, as well as marijuana, according to the court documents.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendants’ 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 United States Attorney Robert F. Corts following an investigation by the Lorain Police Department, the Drug Enforcement Administration, Lorain County Drug Task Force and Bureau of Alcohol, Tobacco, Firearms and Explosives.
An indictment 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.
Galion Man Sentenced to More Than A Decade in Prison for Child-Pornography ConvictionRead the Press Release
A Galion, Ohio, man was sentenced to more than a decade in federal prison after previously pleading guilty to a child-pornography charge, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Richard Cooper, age 32, was sentenced last week to 121 months in prison by U.S. District Judge Sara Lioi. He pleaded guilty in October 2012 to one count of receipt and distribution of visual depiction of minors engaged in sexual activity.
“Protecting our children from predators is a priority of this office and the Department of Justice,” Dettelbach said. “The evidence found here by the FBI and Galion Police Department is profoundly troubling, and this defendant deserves to be behind bars.”
Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, said: “Richard Cooper possessed an alarming amount of child pornography and must be held accountable. The FBI, along with our law enforcement partners, is committed to protecting children from predators.”
On Oct. 12, 2011, Galion police officers executed a search warrant and discovered 47 videos and approximately 772 images of child pornography being shared by Cooper’s computer, and an additional 644 additional images of possible child pornography recorded on two compact discs, according to court records.
A subsequent forensic examination of the computers and CDs revealed 1,416 images of child pornography and 47 videos depicting child pornography. The videos and images include children, some as young as four months, engaged in sexual acts with other minors and adults, including humiliating, sadistic conduct, according to court records.
This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the Galion Police Department and Federal Bureau of Investigation, Mansfield Office.
Child-Pornography Charges Filed Against Deninson ManRead the Press Release
A federal grand jury in returned a two-count indictment charging Lloyd A. Devore, Jr., age 53, of Dennison, Ohio, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct, and possessing child pornography, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges from on or about February 15, 2013, through on or about March 13, 2013, Devore 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 March 13, 2013, Devore 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 the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Canton office of the Federal Bureau of Investigation and the Canton 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.
Youngstown Woman Sentenced to 3 1/2 Years in Prison for Theft from Health-Benefit Program, Other CrimesRead the Press Release
A Youngstown woman was sentenced to 3 1/2 years in prison and ordered to pay nearly $55,000 in restitution for using false identities to defraud health benefit plans , United States Attorney Steven M. Dettelbach said.
Shari Spencer, 42, previously pleaded guilty to three counts: theft from a health-benefit program, aggravated identity theft and making false statements.
The following description of Spencer’s crimes come from court documents:
Professional Benefits Administrators (“PBA”) was a third-party administrator of health care benefit plans. PBA’s main office was located in Cuyahoga Falls, Ohio, and it had a branch office in Austintown, Ohio. The defendant, SHARI L. SPENCER (“SPENCER”), was employed by PBA in various capacities from 2000 until she left in September 2010, when PBA went into receivership. Spencer was the office manager of PBA’s Austintown office from 2008.
PBA had a number of clients with whom it contracted to provide third-party administration services in relation to the health care benefit plans that the clients sponsored for their employees. Those clients included Northern Ohio Medical Specialists (“NOMS”) and Community Health Care, Inc. (“CHC”).
NOMS
NOMS was the sponsor of the Northern Ohio Medical Specialists Employee Health Benefit Plan - HSA Plan, a self-funded health care benefit plan for the benefit of NOMS’ employees (the “NOMS Health Benefit Plan”). PBA was the third-party adminstrator for the NOMS Health Benefit Plan. PBA was responsible for processing and adjudicating the health benefit claims of NOMS employees and for paying those claims from a bank account at Village Bank (Blain, MN), which PBA held in trust for NOMS (“NOMS Health Benefit Plan Trust Account”).
NOMS also contracted with an insurance carrier, TPAC, to provide “stop-loss” insurance coverage in relation to the NOMS Health Benefit Plan. Under the agreement, NOMS paid the health benefit claims of NOMS employees up to a certain, agreed-upon aggregated amount for all employees. If the combined health benefit claims of NOMS employees exceeded that amount, the stop-loss coverage kicked in, and TPAC was responsible for paying the excess NOMS employee health benefit claims.
To facilitate the collection and making of such stop-loss payments, PBA submitted claims in excess of NOMS’ aggregate claims amount to TPAC. TPAC, in turn, set up an account at Village Bank such that anytime claims exceeded NOMS’s share, TPAC’s account automatically deposited funds in the amount of the required stop-loss payment into the NOMS Health Benefit Plan Trust Account. (As a technical matter, the TPAC account was similar to an overdraft protection account for the NOMS Health Benefit Plan Trust Account.) PBA then prepared checks drawn on the NOMS Health Benefit Plan Trust Account and sent them to the provider in question to pay the claim.
SPENCER had access to the names, addresses, social security numbers, employee numbers, and other personal identification information of NOMS employees, and to other NOMS Health Benefit Plan information. SPENCER also had access to the PBA claims system and to information relating to the NOMS Health Benefit Plan Trust Account.
CHC
PBA was also the third-party administrator services in relation to the self-funded health benefits plan that CHC sponsored for its employees.
Like NOMS, CHC also contracted with an insurance carrier to provide stop-loss insurance coverage for the health benefit claims of CHC employees, but CHC used Trustmark, not TPAC. Under the agreement, CHC paid the health benefit claims of its employees up to a certain agreed-upon amount. If the health benefit claims of CHC employees exceeded that amount, the stop-loss coverage kicked in, and Trustmark was responsible for paying the excess health benefit claims of CHC employees, which it did by making stop-loss payments directly to CHC.
To get stop-loss coverage, CHC was required to provide certain information to Trustmark about its employees and their prior health claims and claims history (“disclosure information”). Trustmark based the premium it charged to CHC for the stop-loss coverage on this disclosure information, and the enforceability of the stop-loss coverage was subject to proper disclosures being made to Trustmark. PBA was responsible for compiling and providing any and all disclosure information relating to CHC employees to Trustmark such that the stop-loss coverage would be in force and cover any excess claims. SHARI L. SPENCER was the sole person responsible for handling this disclosure information for CHC and transmitting it to Trustmark.
The Scheme
Using personal identification information for NOMS employees and/or their covered spouses, Spencer manufactured and submitted two separate fake medical claims for stop-loss payments to TPAC, purportedly on behalf of NOMS. Based on Spencer’s submissions, TPAC paid the claims and funded the NOMS Health Benefit Plan Trust Account even though no medical services were ever rendered in either case. Spencer then diverted the funds from the NOMS Health Benefit Plan Trust Account to other uses.
In the first instance, Spencer diverted $54,809.38 to CHC to cover up Spencer’s failure to provide the proper disclosure information to Trustmark (CHC’s stop-loss carrier), which failure had resulted in Trustmark denying a $54,809.38 claim for a CHC employee. In the second instance, Spencer caused a check in the amount of $21,014.83 to be issued to “S.L. SPENCER HSPT,” which she signed and deposited into her own bank account.This case was prosecuted by Assistant U.S. Attorneys Rebecca Lutzko and John Siegel following an investigation by the Department of Labor, Employee Benefits Security Administration and Office of Inspector General.
Five Members of Sandusky Family IndictedRead the Press Release
Five members of a Sandusky family were charged in a three-count indictment related to skimming more than $1.8 million in cash from three restaurants the family operates in the Sandusky area and depositing the cash at numerous financial institutions, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Haralambos Gonos, age 52; Andreas Gonos, age 28; Chris Gonos, age 31; Kryiakos Gonos, age 30, and Sofia Skoura, age 52.
In count one – conspiracy to structure financial transactions to evade filing currency transaction reports -- Haralambos Gonos, Andreas Gonos, Chris Gonos, and Kryiakos Gonos are accused of taking large amounts of cash from Dianna’s Deli, Dianna’s and The Depot and making multiple deposits of cash just under the $10,000 threshold, for the purpose of evading the filing of a Currency Transaction Report. The conduct took place between 2007 and 2009, according to the indictment.
Count two charges that Haralambos Gonos and an unindicted co-conspirator conspired to structure financial transactions to evade filing Form 8300 between March 2010 and November 2011. Specifically, Gonos purchased a 2007 Mercedes and 2005 Porsche Cayenne motor vehicles by using combinations of cash and multiple cashier’s checks, according to the indictment.
Count three charges Haralambos Gonos and Sofia Skoura conspiring to engage in bulk cash smuggling in an attempt to transport currency to a place outside the United States on or about January 31, 2013. Specifically, they are accused of attempting to transport more than $14,700 to Greece, where they maintain a residence, according to the indictment.
"These defendants are accused of avoiding bank regulations," Dettelbach said.
“It is IRS-CI’s responsibility when investigating financial institution fraud to focus on the flow of the money which ultimately leads us to the beneficiaries of this illegal activity,” said Denise Rocawich, Acting Special Agent in Charge, IRS Criminal Investigation.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agencies in this case are the Internal Revenue Service, Toledo, Ohio the Department of Homeland Security, Dearborn, Michigan, , ICE Homeland Security Investigations, Detroit, Michigan, and the U.S. Customs and Border Protection, Detroit, Michigan. The case is being handled by Assistant United States Attorney Joseph R. Wilson.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Man Found Guilty of Being A Felon in Possession of A Firearm and AmmunitionRead the Press Release
Raymone “Ramone” Clements was found guilty following a jury trial of one count each of being a felon in possession of a firearm and being a felon in possession of ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
U.S. District Judge Donald Nugent scheduled sentencing for June 13.
Clements, 42, of Cleveland, was found to have one round of .357-caliber ammunition and two rounds of .22-caliber ammunition on Dec. 20, 2012 and a Rossi, Model Garrucha, .22-caliber Derringer, serial number 307228, on Jan. 17, 2013. Clements had this ammunition and firearm despite previous convictions in the Cuyahoga County Court of Common Pleas for rape (2006), drug trafficking (2003) and aggravated robbery (1991).
“This case demonstrates why rapists and other felons are forbidden from having firearms,” Dettelbach said. “Whether is a person using a gun to commit a violent crime, a felon illegally obtaining ammunition or a straw purchaser trying to circumvent the law, we will aggressively pursue those who would violate our nation’s firearms laws.
“We will continue to work side by side with our federal, state, county and local law enforcement partners to make sure those individuals who illegally possess firearms and/or ammunition are held accountable for their actions,” said ATF Special Agent in Charge Robin Shoemaker, Columbus Field Division.
Witnesses testified during the trial that Clements shot a dog in a public park in Cleveland Heights. That incident led investigators to search his residences, where they found the ammunition and firearm, according to court testimony.
This case is being prosecuted by Assistant U.S. Attorneys Kelly L. Galvin and Margaret Sweeney following an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives and Cleveland Heights Police Department.
Bowling Green Man Charged with Illegally Taking VA FundsRead the Press Release
An indictment was filed charging Mickael C. Jones, age 36, of Bowling Green, Ohio, with taking approximately $14,000 from the Department of Veterans Affairs, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Mickael 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 indictment.
From May 2009 to December 2010, Jones converted to his own approximately $14,000 of VA benefits, to which he was not entitled, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Department of Veterans Affairs, Office of Inspector General. The case is being handled by Assistant United States Attorney Thomas A. Karol.
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.
Walbridge Man Charged with Falsely Labeling Ivory ShipmentRead the Press Release
A criminal information was filed charging a Walbridge, Ohio, man with falsely labeling a package containing wildlife items, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio
Mark St. John, age 53, falsely labeled an elephant ivory shipment destined for an overseas buyer on June 1, 2011, according to the information.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United State Fish & Wildlife Service, Delaware, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four Akron Residents Indicted for Conspiracy Involving Student Financial Aid and Fake G.E.D. CertificatesRead the Press Release
Four Akron residents have been indicted for their roles in a conspiracy in which some used fake G.E.D. certificates to enroll in the University of Akron and fraudulently obtain more than $104,000 in financial aid, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Lori A. Martin, age 46, Raheem J. Martin, age 40, Teresa K. Scott, age 34, and Tina M. Mileca, age 34, are charged with conspiracy to commit mail fraud and wire fraud.
“These defendants cut corners to get money to which they were not entitled,” Dettelbach said. “Our office will continue to prosecute those who defraud the federal government.”
The defendants conspired to obtain federal student financial aid money to which the recipients were neither eligible nor entitled by creating and submitting fake Official Transcripts falsely reporting General Educational Development test results and the awarding of G.E.D. certificates for persons who had not earned and did not have such certificates, according to the indictment.
The defendants submitted these fake documents to the University of Akron to gain admission to the university and, thereby, access to the federal funds. The defendants used the grant and loan money they received to pay for living expenses and other personal expenditures, as well as costs associated with attending the University of Akron, according to the indictment.
The conspiracy took place from August 2006 through September 2011, according to the indictment.
Lori Martin created fake Official Transcripts that reported test results and the awarding of G.E.D. certificates for Raheem Martin, Scott and Mileca. She also helped them complete online applications to the University of Akron and student aid, according to the indictment.Scott and Mileca each paid $200 each to Lori Martin for the fake G.E.D. Official Transcript, according to the indictment.
Lori and Raheem Martin obtained more than $76,100 in Pell Grants and federally insured loans from these activities. Scott received more than $23,800 in Pell Grants and federally insured loans while Mileca obtained at least $4,600, according to the indictment.
As a result of the conspiracy, the Department of Education was defrauded and sustained a total loss of at least $104,611, according to the indictment.
This case was investigated by Special Agents of the Department of Education, Office of Inspector General, located in Ann Arbor, Michigan, and the University of Akron Police Department, with the assistance of the Akron Police Department.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorney Rebecca Lutzko.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Woman Accused of Stealing Prescription Pad from Hospital to Obtain OxycodoneRead the Press Release
A federal grand jury returned a one-count indictment charging a Cleveland woman with conspiracy to possess with intent to distribute Oxycodone, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Charmin Reeves, age 35, is accused of stealing 10 blank prescriptions from an area hospital where she worked. She filled one out one prescription for 90 pills of Oxycontin in November 2009 and sold the other nine blank prescriptions for $900, according to the indictment.
"Prescription drug abuse is a huge problem throughout Ohio," Dettelbach said. "We will continue to work with our law enforcement partners to push back against this trend."
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael L. Collyer. The case was investigated by the Cleveland branch of the Federal Bureau of Investigation and the Cleveland Police Narcotics Unit.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Aurora Man Accused of Diverting $225,000 from Construction Contracts for Personal Use, Including Restoring CorvetteRead the Press Release
A nine-count criminal information was filed charging an Aurora, Ohio, man with crimes related to a scheme of at least $225,000 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, is accused of creating 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 the information.
Berryhill, who served as the senior vice president of Carnegie Management and Development Corp. (CMDC) in Westlake, Ohio, is charged with 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.
“This defendant is accused of abusing the trust of his employer, his colleagues and his customers in an effort to enrich himself,” said Dettelbach. “He is accused of using public contracts as a way to get his Corvette restored and his pockets lined with hundreds of thousands of dollars.”
“Robert Berryhill is accused of creating false businesses, false invoices and ultimately pretending to be an FBI employee, all in a desperate attempt to defraud others out of at least $225,000,” Anthony said. “The FBI remains committed to detecting and stopping those defrauding others.”
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 the information.
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 the information.
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 the information.
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 the information.
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 the information.
Overall, Berryhill caused an actual loss of at least $225,919.
Berryhill is also accused of falsely pretending 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 the information.
The case resulted from an investigation conducted by Federal Bureau of Investigation. The case was handled by Assistant United States Attorney Robert J. Patton.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Northwood Man Sentenced to Prison for Violating Copyright LawsRead the Press Release
Jeffrey J. Reichert was sentenced to one year and one day in prison for for violating the Digital Millennium Copyright Act, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Reichert, age 27, of Northwood, Ohio, was found guilty earlier this year following a jury trial before U.S. District Judge Donald C. Nugent.
On April 3, 2012, a federal grand jury returned a one-count indictment charging Reichert with knowingly manufacturing, importing, offering to the public, or otherwise trafficking in technology, products, services, devices, components or parts thereof, which were primarily designed to circumvent technological measures designed to effectively control access to a work copyrighted under Title 17 of the United States Code, for purposes of commercial advantage or private financial gain.
Specifically, the defendant was charged with trafficking in modification chips (also known as “Mod Chips”) which are primarily designed to circumvent the technological measures designed into video game consoles (such as the Nintendo Wii) to prevent access to copyrighted works.
This case was prosecuted by Assistant U.S. Attorneys Robert W. Kern and Chelsea Rice of the Cleveland U.S. Attorney’s Office, following an investigation by the Cleveland Office of the Department of Homeland Security, Immigration and Customs Enforcement (ICE).
Businessman Michael Forlani Sentenced to Eight Years in PrisonRead the Press Release
Cleveland-area businessman Michael Forlani was sentenced to more than eight years in prison after previously pleading guilty to RICO conspiracy and other crimes related to bribes Forlani paid to public officials in exchange for help getting contracts for companies he owned or controlled, federal law enforcement officials said today.
U.S. District Judge Sara Lioi sentenced Forlani, age 55, of Gates Mills, to 97 months in prison. She also ordered him to forfeit $900,000 and pay $136,251 in restitution -- $95,129 to Cuyahoga County, $37,144 to the Maple Heights City School District and $3,978 to Metro Health Systems.
Forlani pleaded guilty last year to RICO conspiracy, Hobbs Act violations, conspiracy to commit wire fraud and honest services wire fraud, and other charges.
Forlani was president and majority owner of Doan Pyramid LLC, a minority owner in Neteam, AVI, the sole member of Veterans Development, LLC, a member of the board of managers for Veterans Development Domiciliary, LLC, the sole member of Wade Park Retail, LLC, and the sole owner fo Deep Three Partners, LLC, according to court documents.
Between 2002 and 2009, Forlani conspired with Jimmy Dimora, Santina Klimkowksi, John Carroll and other public officials in exchange for those officials using their positions to benefit Forlani and his associated companies, according to court documents.
Those actions included awarding and executing public business, expediting and influencing official actions pending before public agencies and other actions, according to court documents.
This included the Cuyahoga County Commissioners voting to award Doan a $941,000 contract to install emergency generators at the Justice Center; requesting and obtaining Dimora’s assistance related to contracts at the Juvenile Justice Center project; getting Dimora’s assistance related to influencing board members on a RTA contract valued at more than $1.1 million, the appointment of a member to the Port Authority Board, getting a county economic development loan, getting no-bid contracts at Maple Height City Schools, and construction contracts and subcontracts at MetroHealth Medical Center, among other actions, according to court documents
In return, Forlani and his associated companies provided things of value to the public officials, such as discounted home improvements, installation of televisions and an outdoor audio/visual system, loge seats for concerts, sporting event tickets, meals and drinks, and other things of value, according to court documents.
The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon, Henry DeBaggis and Nancy L. Kelley following an investigation by the FBI, IRS – Criminal Investigation and the Department of Veterans Affairs – Office of Inspector General.
Woman Charged with Theft of Government PropertyRead the Press Release
A grand jury returned a five-count indictment charging Danette M. Stevenson, 37, with two counts of theft of government property and three counts of making false statements, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Stevenson stole and converted to her own use, approximately $38,130.63 in Social Security payments made to her that she was not entitled to receive.
The indictment further alleges that Stevenson stole and converted to her own use approximately $14,156.00 in Housing Choice Voucher Program (commonly referred to as Section 8) benefits that she was not entitled to receive.
The indictment further alleges that Stevenson made false statements in connection with applications for Social Security and Housing benefits.
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 and Trial Attorney Richard T. Hamilton, Jr., following investigation by agents of the Social Security Administration, Office of Inspector General and the United States Department of Housing and Urban Development, Office of Inspector General.
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 Indicted Related to Misuse of Visa PermitsRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a four-count indictment charging Hamadoun Bacoco Samassekou, age 29, of Parma, Ohio, with three counts of Fraud and Misuse of Visa Permits, Melissa A. Davis, age 23, of Cleveland, Ohio, with two counts of Fraud and Misuse of Visa Permits, and Chella A. Davis, age 21, of Cleveland, Ohio, with one-count of False Statements to federal officers.
The indictment alleges that Hamadoun Bacoco Samassekou, and Melissa A. Davis, knowingly made false statements with respect to an I-130 Petition for Relative Alien by falsely impersonating and representing that Melissa Davis was Samassekeo’s wife.
The indictment further alleges that Samassekou and Melissa A. Davis knowingly made false statements under oath with respect to an interview regarding Samassekou’s immigration status, by falsely personating and representing that she was the wife of Samassekou.
The indictment further alleges that Samassekou made false statements or representations regarding his I-485 Application by answering “No” to a question about whether he knowingly committed any crime of moral turpitude or drug offense.
The indictment further alleges that Chella A. Davis, knowingly made a material false statement to immigration officers by stating that she was never married to Samassekou when in truth and fact she was.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.The case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, and Trial Attorney Richard T. Hamilton, Jr., following investigation by agents of the Immigration and Customs Enforcement, Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Men and Company Charged in Scheme Related to Theft of Social SecurityRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a five-count indictment charging Kevin Philip Zeszut with one count of theft of government property; charging Ohio Transport Corporation with one count of aiding and abetting the theft of government property and charging William C. Hill, Jr., with one count of aiding and abetting the theft of government property and four counts of making false statements.
Zeszut, 60, lives in Parma, Ohio; Hill, 59, lives in Liberty Township, Ohio and Ohio Transport Corporation is located in Middletown, according to public records.
The indictment alleges that Zeszut stole and converted to his own use, $196,245 in Social Security payments and related benefits to which he was not entitled.
The indictment further alleges that Hill made false statements to agency representatives by stating that Zeszut was not an employee of his company, Ohio Transport Corporation, when, in fact, Hill knew that Zeszut was a full-time employee of his company, but was being paid using the actual name and Social Security number of a person other than Zeszut.
If convicted, the defendants’ sentences will be determined by the Court after a review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximums, and in most cases they will be less than the maximum.
The case is being prosecuted by Trial Attorney Ian D. Hoffman and Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the Social Security Administration Office of Inspector General.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.Mansfield Man Charged Wtih Making Bomb ThreatsRead the Press Release
A criminal information was filed charging a Mansfield man with six counts of willfully making threats, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation for the Northern District of Ohio.
Lonny L. Bristow, 39, is accused of calling in bomb threats to courthouses in Nebraska, Washington, Oregon, Tennessee and Mississippi beginning in November throughout the month of December 2012.
Bristow made the threats using prepaid calling cards that purchased at the Wal-Mart Supercenter in Upper Sandusky, Ohio, according to the information. Bristow had purchased several pre-paid calling cards and those pre-paid calling cards were linked to the false bomb threats placed to various courthouses spanning five states, according to the information.
"These threats caused fear and panic throughout courthouses around the country," Dettelbach said. "The FBI did a tremendous job in piecing this case together."
"Lonny Bristow induced panic in hundreds of people across several states who were simply trying to do their work," Anthony said. "The FBI will continue efforts to aggressively pursue charges against anyone, such as Mr. Bristow, who chooses to make reckless and malicious bomb threats."
The case is being prosecuted by Assistant United States Attorney Thomas Getz after an investigation by agents of the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by thecCourt after a review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses, and the characteristics of the violations. In all cases the 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.
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Justice Department Settles Sex-Discrimination Suit Against Summit CountyRead the Press Release
The Department of Justice announced today that it has entered into a consent decree with Summit County, Ohio, and related parties, which if approved by the court, will resolve a sex discrimination lawsuit in which the United States intervened in June 2012.
The United States joined a lawsuit brought in the U.S. District Court for the Northern District of Ohio by 21 female deputy sheriffs at the Summit County Jail who claimed they were subjected to discrimination due to a sex-segregated job assignment system implemented at the jail in January 2012. The United States’ complaint in intervention alleged that this system discriminated against female deputies because of their sex and constituted a pattern or practice of sex discrimination in violation of Title VII of the Civil Rights Act of 1964. As a result of this discriminatory practice, the United States alleged female deputies lost the job assignments and shifts they had earned based on their seniority as well as opportunities to bid on overtime postings.
“Bringing an end to practices in the law enforcement community that discriminate against women is a major priority of the Justice Department and the Civil Rights Division. Practices that facially discriminate on the basis of sex that cannot be justified under the law, like the job assignment system used by Summit County, present a major hurdle to workplace equality that the Justice Department will not ignore,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General, Civil Rights Division.
In July 2012, shortly after the United States joined the lawsuit, Summit County abandoned its sex-segregated job assignment system. Under the terms of the consent decree, Summit County has agreed to take several steps to ensure that any job assignment system implemented at the Summit County Jail will comply with Title VII and only use sex-based assignments, if at all, to the limited extent that they are reasonably necessary to the normal operation of the jail.
To make this determination, the county will conduct a staffing analysis and develop a lawful staffing plan, which it will review regularly during the life of the decree. The county will also provide training on sex discrimination as well as engage in recruitment efforts to encourage qualified female applicants to apply for deputy positions.
Finally, the county will pay $400,000 in individual monetary relief to the affected female deputies and to cover their attorney fees.
“This agreement ensures that female deputies at the Summit County Jail will have the opportunity to do the same jobs as their male counterparts,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “We will continue to press for equality for women in the workplace.”
This is the first pattern or practice lawsuit brought by the Justice Department as a result of a joint project with the Equal Employment Opportunity Commission (EEOC) designed to ensure vigorous enforcement of Title VII against state and local governmental employers by enhancing cooperation between the EEOC and the Civil Rights Division. Enforcement of federal employment discrimination laws is a top priority for the Justice Department with this case being handled by attorneys assigned to both the Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Ohio.
“Our partnership with Department of Justice allows for the strategic investigation and efficient resolution of discrimination claims in the public sector,” said EEOC District Director Spencer H. Lewis Jr., of the EEOC Philadelphia District Office. The Philadelphia District Office of the EEOC oversees Pennsylvania, Maryland, Delaware, West Virginia and parts of New Jersey and Ohio.
Title VII prohibits discrimination in employment on the basis of gender, race, color, national origin or religion, and prohibits retaliation against an employee who opposes an unlawful employment practice, or because the employee has made a charge or participated in an investigation, proceeding or hearing under the act. More information about Title VII and other federal employment laws is available on the Department of Justice website at www.usdoj.gov/crt/emp/index.html.
The EEOC enforces federal laws prohibiting employment discrimination. Further information about the EEOC is available on its website at www.eeoc.gov.
Hubbard Man Faces Heroin ChargeRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury sitting in Cleveland, Ohio, returned a one-count indictment charging Andre M. Little, age 27, of Hubbard, Ohio, with possession with the intent to distribute heroin.
The indictment charges that on or about February 13, 2013, Andre M. Little possessed with the intent to distribute more than 1,000 grams of heroin.
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 - Youngstown Resident Office. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former IT Manager at Cuyahoga Heights School District Charged with Crimes Related to Theft of $3.4 MillionRead the Press Release
A three-count information was filed charging a former employee of the Cuyahoga Heights School District with crimes related to the theft of more than $3.4 million from the district, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Joseph M. Palazzo, age 31, of Independence, Ohio, was charged with conspiracy to commit mail fraud, conspiracy to commit money laundering, and wire fraud.
“This defendant is accused of lining his pockets with millions of dollars intended to be used to educate the children of the Cuyahoga Heights School District,” Dettelbach said. “Our office will continue to go after those who would abuse the public trust.”
“This investigation uncovered a multi-million dollar embezzlement scheme laced with a web of financial lies that left a local school district in financial peril,” said Denise Rocawich, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
“Joseph Palazzo violated the trust that the citizens and students of Cuyahoga Heights had placed in him by funding his personal account with millions of their tax dollars,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The investigators are to be commended for uncovering this enormous fraud.”
Palazzo was employed by the Cuyahoga Heights School District as its Information Technology Director until February 2011. Palazzo was responsible for managing the District’s IT Department, which included purchasing hardware and software and making other IT expenditures to benefit the District and its students, according to the information.
Palazzo devised a scheme to divert millions of dollars of District funds to his personal use and the personal use of others. This scheme involved Palazzo submitting to the District for payment false invoices that purported to be for IT-related goods and services purchased from legitimate companies by the District’s IT Department to benefit the District. Palazzo represented that the invoices he submitted were legitimate, and he approved the false invoices himself or forged the signature of another in the approval section, according to the information.
However, these invoices were for services never performed, fictitious software and hardware, and software and hardware never received or already purchased by the District from another source. The companies named on the invoices did not supply such goods to or perform such services for the District and were nothing more than “shells,” according to the information.
Palazzo’s actions caused the District to issue checks to these shell vendor corporations, which were established and owned by others working with Palazzo who are not named in the information. The shell vendor corporation owners, in turn, kept approximately half of the stolen money themselves and funneled the remainder of the money back to Palazzo for his personal use, according to the information.
As a result of the conduct of Palazzo and his unnamed co-conspirators, the District was defrauded and sustained a total loss of at least $3,333,448, according to the information.
Palazzo also engaged in a second scheme to defraud the District. It involved Palazzo purchasing various personal electronic items, such as I-Pads, cameras, and televisions, from legitimate District vendors. Palazzo then altered the invoices from such purchases to falsely reflect that classroom items, such as digital microscopes, projectors, and laptops, had been purchased for the District and submitted those invoices to the District for payment. Upon receipt of these personal electronic items, Palazzo sold them to third-parties at a discounted price and kept the money from such sales for his own personal use, according to the information.
As a result of the Palazzo’s conduct in the second scheme, the District was defrauded and sustained an additional loss of at least $76,214, according to the information.
This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation, both located in Cleveland, with the assistance of the State of Ohio Auditor’s Office and the United States Postal Inspection Service.
The case is being prosecuted by Assistant United States Attorney Rebecca Lutzko, Special Assistant United States Attorney Perry Mastrocola, and Assistant United States Attorney James L. Morford.
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.
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.
Firearms and Explosives Charges Filed Against Rootstown ManRead the Press Release
A federal grand jury returned a three-count indictment charging Samuel Oaks, age 61, of Rootstown, Ohio, with improperly stored high explosives, possession of an unregistered firearm, and possession of a firearm with an obliterated serial number, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Count 1 of the indictment charges that on or about December 4, 2012, Oaks knowingly, improperly and illegally stored nine Dupont electronic detonators/blasting caps, at a Rootstown, Ohio, residence.
Counts 2 and 3 of the indictment charge that on or about December 19, 2012, Oaks possessed a FMJ, model M-11/Nine, 9mm submachine gun, which was not registered to him in the National Firearms Registration and Transfer Record, and which submachine gun had an obliterated serial number.
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. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Akron Woman Charged with Tax ViolationsRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced that Kelly Prigmore was indicted on two counts of making and subscribing false federal income tax returns for the years 2006 and 2007.
According to court records, Prigmore, 42, resides in Akron, Ohio.
The indictment alleges that Prigmore worked as a self-employed home health care provider for a client who paid her for live-in 24 hour services. Prigmore allegedly filed joint personal income tax returns on which she omitted approximately $209,601 of her home health care service income.
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 the indictment.
If convicted, Prigmore’s sentence will be determined by the court after review of factors unique to this case, including her prior criminal record, if any, her role in the offenses, and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases they will be less than the maximum.
This case is being prosecuted by 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.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Toledo Doctor Sentenced to Five Years in Prison for Illegally Dispensing OxycodoneRead the Press Release
A former Toledo medical doctor was sentenced to five years in prison after previously pleading guilty to crimes related to the dispensation of 1,300 pills of Oxycodone and fraudulently billing Medicaid for more than $78,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Darrell A. Hall, age 54, previously pleaded guilty to conspiracy to distribute a controlled substance, health care fraud and a tax count.
“This sentence should send a message to any doctor who would use their prescription pad as a means to run a pill mill,” Dettelbach said.
“This case is a clear example of a doctor putting greed above quality care for his patients," said Ohio Attorney General Mike DeWine. "This joint state and federal investigation found that this doctor improperly prescribed the drug Oxycodone, and he also defrauded the Medicaid program by claiming he provided more services than he actually did."
Hall was licensed to practice medicine and operated a practice under the name “EDM Health Services, LLC.” He was also a registered provider to Ohio Medicaid, which provides free health benefits to qualified low-income Ohio residents, according to court records.
Hall conspired with others between August 2008 through May 2009 to distribute 1,300 pills of 80 milligrams of Oxycodone for no legitimate medical purpose, according to court records.
He also fraudulently billed Ohio Medicaid in the amount of $78,113.73 between January 2007 and December 2009, according to court records.
He also failed to pay $97,384.88 in taxes that he owed to the Internal Revenue Service owed on behalf of EDM Health Services, LLC, between 2007 and 2010, according to court records.
The health care fraud charge was investigated by Ohio Attorney General Mike DeWine’s Health Care Fraud Unit, while the other charges were investigated by the Drug Enforcement Administration, Detroit, Michigan, and the Internal Revenue Service, Toledo, Ohio. The case is being handled by Assistant United States Attorneys Joseph R. Wilson and Thomas P. Weldon.
Toledo Man Charged with Wire Fraud and Identity TheftRead the Press Release
A criminal information was filed charging Jermain R. Stevenson, age 22, of Toledo, Ohio, with wire fraud and aggravated identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Stevenson is accused of fraudulently obtaining the personal identification information of credit-card holders and using that information to have purchase goods and services that he then had delivered to various locations in Toledo, according to the information.
Stevenson did this between October 2010 and January 2012, fraudulently purchasing at least $62,000 worth of goods and services, according to the information.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Cleveland. The case is being handled by Assistant United States Attorney Joseph R. Wilson.
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.
Eastlake Man Sentenced to 27 Months in Prison, Ordered to Pay $1 MillionRead the Press Release
An Eastlake man was sentenced to more than two years in prison and ordered to pay $1 million for his role in a fraud against St. Paul Croatian Federal Credit Union, said Steven M. Dettelbach.
Marko Nikoli, age 35, pleaded guilty last year to two counts of bank fraud and one count of money laundering.
U.S. District Judge Christopher A. Boyko sentenced Nikoli to 27 months in prison.
SPCFCU, located in Eastlake, was placed into conservatorship by the National Credit Union Administration on April 23, 2010. One week later, the NCUA liquidated SPFCFU and discontinued its operations after determining the credit union was insolvent. At that time, SPCFCU served about 5,400 members and was believed to have assets of approximated $239 million.
This case is being prosecuted by Assistant U.S. Attorneys Bridget M. Brennan and Justin Herdman following an investigation by the Cleveland office of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.
Mayfield Heights Woman Charged with Embezzling More Than $650,000Read the Press Release
A one-count criminal information was filed today charging Willoughby Hills woman with embezzling more than $650,000 in federal funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Theresa E. Medsker, age 51, is accused of embezzling approximately $654,192 in federal funds while working as the bookkeeper for the Schnurmann House in Mayfield Heights, Ohio. Schnurmann House is a non-profit, inter-denominational housing community consisting of 198 apartments for individuals age 62 and over that receives a substantial portion of its funding from the United States Department of Housing and Urban Development.
“This defendant was in a position of trust, and the charge lays out behavior that is a clear violation of that trust,” Dettelbach said. “This office will continue to hold accountable those that would betray the public’s confidence, in whatever form.”
The information charges that from on or about December 28, 2005 through on or about January 10, 2012, Medsker controlled Schnurmann House's bank accounts, and issued fraudulent checks from these accounts to herself. Because all of the Schnurmann House checks required two signatures, one from the executive director and one from the administrative assistant, Medsker forged the signature of the executive director on the checks and presented them to the administrative assistant, who signed them believing that the executive director had already approved the checks, according to the information.
Then, Medsker cashed and deposited the Schnurmann House checks into her personal bank accounts. In order to conceal her theft of funds from the Schnurmann House, Medsker altered and falsified the Schnurmann House’s monthly bank statements by physically cutting and pasting vendor checks on top of the checks she wrote to herself, and making counterfeit copies of the bank statements, according to the information.
Medsker then submitted the altered bank statements to the executive director and the board as Schnurmann House’s official financial records, according to the information.
Over the course of the fraud, Medsker deposited approximately 300 Schnurmann House checks made payable to her into her personal accounts totaling approximately $654,192, according to the information.
If convicted, Medsker’s sentence will be determined by the court after review of factors unique to this case, including defendant’s prior criminal record, if any, defendant’s role in the offense, and the characteristics of the violation. The sentence will not exceed the statutory maximum and will likely be less than the maximum statutory period of incarceration.This case is being prosecuted by Assistant United States Attorney Mark S. Bennett, following an investigation by the Cleveland Office of the United States Department of Housing and Urban Development, Office of Inspector General, and the City of Mayfield Heights Police Department.
An information is only a charge and is not evidence of guilt. Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Bay Village Man Charged with Mail Fraud and Tax EvasionRead the Press Release
A Bay Village man was charged via criminal information with mail fraud and tax evasion, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Frederick C. Bryant, age 45, is accused of embezzling $505,832 from a victim that he guaranteed a 5 percent rate of return.
Bryant converted the money for his own personal use. Bryant also failed to report the funds to the IRS, according to 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.
Justice Department Announces Investigation of Cleveland Division of PoliceRead the Press Release
The Justice Department announced today that it has opened a pattern or practice investigation into use of force by the Cleveland Division of Police (“CPD”). The investigation will focus on allegations that CPD officers use excessive force, including unreasonable deadly force, and on the adequacy of CPD’s training, supervision, and accountability mechanisms that are essential to effective, constitutional policing.
The Justice Department’s investigation will determine whether CPD officers engage in a pattern or practice of using excessive force in violation of the Constitution and federal law. This investigation will include a comprehensive review of CPD’s policies, procedures, training, accountability systems, and community engagement. As part of this investigation, the Justice Department will reach out to community members and groups for help in identifying potential problems within the police department.
Department officials have met with Cleveland Mayor Frank Jackson, CPD Chief Michael McGrath, and Director of Public Safety Martin Flask and will continue to work closely with both the City and CPD as the investigation progresses.
“Police officers across the country are called upon to protect and safeguard members of their communities and are afforded the authority they need to do so, including the authority to use deadly force,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “It is absolutely imperative that officers use that authority responsibly and within the boundaries of the law. We are eager to work together with the City of Cleveland and its police department to help ensure that its officers are best serving the individuals they are sworn to protect.”
“As we begin this process, our commitment to this community and this city is to conduct a thorough and fair investigation,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “Our joint goal cannot be to invent tough issues, nor can we hide from them if they exist. The Mayor, among others, requested this investigation, and we hope that with the continued cooperation of the city and the community we can ensure Cleveland’s residents receive top notch police protection.”
The Violent Crime Control and Law Enforcement Act of 1994 prohibits state and local governments from engaging in a pattern or practice of misconduct by law enforcement officers that deprives individuals of federally-protected rights. The Act also allows the Justice Department to remedy such misconduct through civil litigation. The Justice Department has conducted similar investigations and has obtained important reforms in police departments and law enforcement agencies across the country.
The Special Litigation Section of the Justice Department’s Civil Rights Division, in Washington, D.C., and the U.S. Attorney’s Office for the Northern District of Ohio, in Cleveland, are jointly conducting this investigation. Individuals with relevant information are encouraged to contact the Justice Department via email at [email protected] or by phone at (202) 307-6479.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the Northern District of Ohio is available on its website at http://www.justice.gov/usao/ohn/.
Justice Department Settles with Ohio Hospital over HIV DiscriminationRead the Press Release
The Justice Department announced today that, as part of its Barrier-Free Health Care Initiative, it has reached a settlement with Glenbeigh Hospital of Rock Creek, Ohio, under the Americans with Disabilities Act (ADA). The settlement resolves allegations that Glenbeigh violated the ADA by denying admission to someone because of HIV. This is the fourth settlement that the Justice Department has reached in six weeks addressing HIV discrimination by a medical provider.
The Justice Department found that Glenbeigh unlawfully refused to admit someone with HIV into its alcohol treatment program because of the side effects of his HIV medication. Glenbeigh’s alcohol treatment program consists of helping patients through the physical aspects of recovery, as well as providing counseling and incorporating spiritual healing. The department determined that Glenbeigh cannot show that treating the complainant would have posed a direct threat to the health or safety of others.
“Ensuring access to medical care for people with HIV requires that those in the medical field make medical decisions that are not based on fears or stereotypes,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The ADA does not tolerate HIV discrimination and neither will the Justice Department.”
“Our office is committed to vigorously enforcing the ADA, including for those with HIV,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “This settlement should send a clear message that those with HIV are entitled to the same services, including medical treatment, as everyone else.”
Under the settlement, Glenbeigh must pay $32,500 to the complainant and $5,000 in civil penalties. In addition, Glenbeigh must train its staff on the ADA and develop and implement an anti-discrimination policy.
In the past five weeks, the department announced similar agreements with Woodlawn Family Dentistry, the Castlewood Treatment Center, and the Fayetteville Pain Center to address HIV discrimination. All four settlements are part of the Department of Justice’s Barrier-Free Health Care Initiative, a partnership of the Civil Rights Division and U.S. Attorney’s offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of 40 U.S. Attorney’s offices. The division expects the initiative to address access to health care for people with HIV and those with hearing disabilities, as well as physical access to medical facilities. In 2012, the division and U.S. Attorneys offices reached two settlement agreements regarding access to medical care for people with HIV and four settlements regarding access to medical care for people with hearing disabilities. For more information on the Barrier Free Health Care Initiative visit www.ada.gov/usao-agreements.htm.
For more information on the ADA and HIV, visit www.ada.gov/aids. Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
Lima Man Charged with Child Pornography CrimesRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that Michael S. Dockery, a 30 year-old from Lima, 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 February 10, 2012, through on or about June 1, 2012, Dockery knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct.
On June 5, 2012, images of child pornography were found on his HP Compaq desktop computer, Dell laptop computer, and six computer thumb drives. On February 4, 2013, images of child pornography were found on his HP Probook 4530s laptop. On February 22, 2013, images of child pornography were found on an additional computer thumb 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 Lima 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.
Delaware Man Charged with Passing and Possessing Counterfeit CurrencyRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury has returned an indictment charging Shakeel Jeffcoat, age 28, of Wilmington, Delaware, with one count of passing counterfeit currency and one count of possessing counterfeit currency.
The indictment charges that on February 5, 2013, Shakeel Jeffcoat passed counterfeit $100 United States federal reserve notes and possessed counterfeit $100 United States federal reserve notes.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being presented by Assistant United States Attorney Gregory C. Sassé after an investigation by the United States Secret Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tax Preparer IndictedRead the Press Release
A tax preparer from Waterville, Ohio, was indicted on four tax counts related to efforts to evade his personal income tax obligation on more than $1.3 million in income, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
According to the indictment, Ronald D. Durbin, age 72, was the principal officer and operator of Citizens Tax Service. He is alleged to have failed to have filed income tax returns for the following years in which he had income on which taxes were due:
2006: $286,604
2007: $306,620
2008: $363,031
2009: $348,881
The indictment alleges that he sought to evade payment of his income taxes for these years by using a nominee owner of his tax preparation business and using nominee bank accounts to conceal the income.
This case is being prosecuted by Assistant United States Attorney Justin J. Roberts following an investigation by the Internal Revenue Service – Criminal Investigations.An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilty beyond a reasonable doubt.
Six Men from Northwest Ohio Indicted for Their Roles in Chop-Shop ConspiracyRead the Press Release
Six men from northwest Ohio were indicted on a variety of charges related to their roles in a conspiracy to transport semi-trucks, trailers and cargo stolen in Ohio, Michigan and Indiana, said law enforcement officials said.
The 17-count indictment names Michael Wymer, age 54, of Toledo; Robert W. Debolt, Jr., age 47, of Toledo; Michael A. Deutsch, age 38, of Toledo; Shawn M. Wymer, age 27, of Holland; Gary J. Wymer, age 55, of Rossford, and Terrance L. Wymer, age 28, of Toledo, Ohio.
“This was a highly organized group that stole from people throughout the Midwest,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “The FBI, Ohio State Patrol and all the law enforcement partners involved in this investigation did a tremendous job shutting down this ring.”
“These defendants operated a truck and cargo-theft ring, stealing from Ohio, Michigan and Indiana, which resulted in a multi-million dollar losses,” said Stephen D. Anthony, Special Agent in Chargeof the FBI’s Northern District of Ohio. “This case was a true collaborative effort by all participating agencies, and we are committed to holding accountable those individuals who engage in this organized criminal activity.”
Colonel John Born, Superintendent of the Ohio State Highway Patrol, said: “Criminals are using Ohio’s vast interstate system to engage in vehicle theft and fraud. These crimes degrade the quality of life in Ohio, and we will continue working together to ensure the safety and security of all Ohioans.”
The charges relate conduct that took place from August 2012 through February 2013, according to the indictment.
The men operated a chop shop located at 642 Sterling Street in Toledo, while Gary Wymer and others operated another chop shop at 2322 Consual Street in Toledo, according to the indictment.
The men would dismantle stolen semi-trucks, trailers and cargo, transport the pieces and parts of said stolen items between the two chop shops and the ultimately destroy or scrap the stolen goods, according to the indictment.
They also received stolen motor vehicles and parts with the intent to sell or dispose of them, according to the indictment.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Cleveland, Ohio in conjunction with the Ohio State Highway Patrol and the Ohio Bureau of Motor Vehicles. The case is being handled by Assistant United States Attorneys Alissa M. Sterling and Thomas A. Karol.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Man Charged with Engaging in Illicit Sexual Conduct with Children While AbroadRead the Press Release
A Cleveland man was charged with traveling to abroad and illegally engaging in illicit sexual conduct with children, said Mythili Raman, Acting Assistant Attorney General, Criminal Division, United States Department of Justice, and Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Malek M. Al Maliki, Jr., 55, was arrested March 6.
“Protecting children from predators is a priority of my office and the Department of Justice,” Dettelbach said. “We will vigorously go after those who would abuse children, whether they lurk online, travel abroad or engage in human trafficking in our backyard.”
The indictment charges that between on or about August 15, 2010 and November 8, 2010, Al Maliki, a United States citizen, traveled in foreign commerce from the United States to Syria, and engaged and attempt to engage in illicit sexual conduct with John Doe #1, a person under 18 years of age.
The indictment also charges that between on or about August 15, 2010 and November 8, 2010, Al Maliki, traveled in foreign commerce from the United States to Syria, and attempted to engage in illicit sexual conduct with John Doe #2, a person under 18 years of age.
If convicted, the defendant’s sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan and Trial Attorney Bonnie Kane of the Criminal Division’s Child Exploitation and Obscenity Section. The case was investigated by the Department of Homeland Security, Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Avon Lake Man Charged with Making A False Statement to the FBIRead the Press Release
A criminal information was filed charging an Avon Lake man with one count of making a false statement to law enforcement, law enforcement officials said.
Kenneth J. Grabowski, 67, was a retired employee of a company identified only as Business 13. He retired in 2003.
As part of the wide-ranging investigation into public corruption in Cuyahoga County, FBI agents tried to determine employees at Business 13 engaged in fraud and commercial bribery with targets of the investigation, including Michael Forlani, the owner of Doan Pyramid Electric, according to the information.
Agents interviewed Grabowski on Nov. 10, 2011, during which time he knowingly and willfully made a material false statement to FBI agents. Grabowski said he was not aware of Forlani or any other Doan Pyramid employee giving case to any Business 13 employee, including Grabowski himself, well knowing at the time that his statement was false, according to the information.
This case is being prosecuted by Assistant United States Attorneys Antoinette T. Bacon, Ann C. Rowland and Nancy Kelley following an investigation by the Federal Bureau Investigation and Internal Revenue Service – Criminal Investigations.
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.
Indictment Filed Charging 28 People with Skimming More Than $1.7 Million from Trucking CompaniesRead the Press Release
A 97-count indictment was filed charging 28 people with violations including conspiracy, wire fraud and money laundering for their roles in a scheme that skimmed more than $1.7 million from trucking companies, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and William Hayes, acting special agent in charge U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit.
“Criminal enterprises are constantly coming up with new ways to rip off companies, consumers and customers,” Dettelbach said. “This group tried to turn truck stops into their own personal ATMs. We will continue to work with our partners in law enforcement to stamp out these schemes.”
“This organization is alleged to have significantly defrauded American trucking companies engaged in legitimate commerce,” Hayers said. “This type of illegal activity can result in higher costs passed on to the consumer.”
Those indicted are: Dilshod Sidikov, aka “Dema”, 24, of Brooklyn, NY; Michael McPherson, 24, of Bronx, NY; Jamarl Gibbs, 29, of Albany, NY; Vernon Parker, 38, of Brooklyn, NY; Ahygia McDowell, 29, of Bronx, NY; Rashaad Forest, 32, of Bronx, NY; William Kelly, 30, of Bronx, NY; Jonas Belizaire, 32, of Bronx, NY; Liza Ortiz, 39, New York, NY; Victoria Alford, aka Victoria Kayeoni Alford, 43, Auburn, NY; Juan Pablo Estevez, 23, Stanton Island, NY; Gilbert Ortega, 38, of Brooklyn, NY; Sharone Lewis, 32, of Brooklyn, NY; Gerald Gomez, 24, of New York, NY; William Whitehead, 28, of Bronx, NY; Mario Flores, 56, of Bronx, NY; Ilya Trakhtenberg, 36, of Brooklyn, NY; Ashle Gardner, 25, of Brooklyn, NY; Paul Garrett, 46, of Bronx, NY; Chad Cook, 35, of Syracuse, NY; Ernest Gonzalez, 45, of Bronx, NY; Anthony Latief King, 42, of Bowie, MD; Johnathan Harris, 23, of Toledo, Ohio; Reginald Nottage, 48, of Brookyln, NY; Paul Grimes, 25, of Bronx, NY; Daniel Nieves, 25, of Bronx, NY; Igor Bekkerman, 41, of Denver, and Erna Kobrinsky, 42, of Hallandale Beach, FL.
Count 1 of the indictment charges the following defendants with conspiracy to commit wire fraud: Dilshod Sidikov, aka “Dema”; Michael McPherson; Jamarl Gibbs; Vernon Parker; Ahygia McDowell; Rashaad Forest; William Kelly; Jonas Belizaire; Liza Ortiz; Victoria Alford, aka Victoria Kayeoni Alford; Juan Pablo Estevez; Gilbert Ortega; Sharone Lewis; Gerald Gomez; William Whitehead; Mario Flores; Ilya Trakhtenberg; Ashle Gardner; Paul Garrett; Chad Cook; Ernest Gonzalez; Anthony Latief King; Johnathan Harris, Reginald Nottage, Paul Grimes, and Daniel Nieves.
Counts 2 through 96 of the indictment charges the following defendants with wire fraud: Vernon Parker; Ahygia McDowell; Rashaad Forest; Jonas Belizaire; Liza Ortiz; Victoria Alford, aka Victoria Kayeoni Alford; Juan Pablo Estevez; Gilbert Ortega; Sharone Lewis; Gerald Gomez; William Whitehead; Mario Flores; Ilya Trakhtenberg; Chad Cook; Ernest Gonzalez; and Johnathan Harris.
The indictment charges that the defendants fraudulently obtained account numbers and codes used by independent trucking companies to wire money to the companies’ drivers from February 2011 through November 2012. They accomplished the objectives of the conspiracy and wire fraud as set forth below:
Electronic fund processing companies (EFP) such as Fleet One, Comdata, and TCH are used by trucking companies to electronically transfer funds to truck drivers at truck stops and other locations throughout the country. Drivers typically obtain the money by providing information to a customer service representative at a participating truck stop. That information is then relayed via wire to an EFP processing center. Once the EFP has authorized the request for money, the truck stop will issue a check to the driver who then cashes it.From the above period of time, known and unknown individuals obtained account numbers and codes used by trucking companies to issue checks through EFPs. These account numbers and codes were obtained without the knowledge or consent of the trucking companies. The known and unknown individuals then provided the stolen account numbers and codes via telephone calls or text messages to the defendants, according to the indictment.
The defendants traveled to truck stops in the Northern District of Ohio and elsewhere. Once at the truck stops, they posed as truck drivers, approached customer service counters, presented the stolen account numbers and codes, and requested checks from EFPs such as Comdata, Fleet One and TCH, according to the indictment.
Customer service representatives at the truck stops then processed the requests by sending the account numbers and codes via wire to EFP processing centers located outside the Northern District of Ohio. The EFPs then authorized the requests and authorized the truck stop customer service representatives, via wire, to print checks for the defendants. They then endorsed the checks and cashed them at the truck stops, according to the indictment.
In total, the defendants fraudulently obtained a gross amount of more than $1.7 million. Most of the transactions took place at truck stops in Ohio, according to the indictment.
Count 97 of the indictment charges the following defendants with money laundering: Dilshod Sidikov, aka “Dema”; Ilya Trakhtenberg; Ahygia McDowell; Daniel Neives; Igor Bekkerman; and Erna Kobrinsky.
From about February 2011, and continuing to on or about November 2012, the defendants conspired to launder money by transferring the proceeds of this scheme from bank accounts New York to Russia and Uzbekistan and then back again to bank accounts in New York, according to the indictment.If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including each of 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 Department of Homeland Security Investigations (HSI). The matter was presented to the grand jury and 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.
Youngstown Man Charged with Drug and Firearms ViolationsRead the Press Release
A federal grand jury has returned an indictment charging Wilbert T. Hughes, Jr., age 39, of Youngstown, Ohio, with one count of possession with the intent to distribute 28 grams or more of a mixture or substance containing a detectable amount of cocaine base (crack) and one count of felon in possession of ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The charges stem from activity that toook place on July 23, 2012 in Youngstown, Ohio, according to the indictment.
The case is being prosecuted by Assistant United States Attorney Linda H. Barr after an investigation by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses, and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three People Indicted on Cocaine ChargesRead the Press Release
Three people were indicted on charges related to a conspiracy to distribute two kilograms of cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Count 1 charges Christopher Isaac, age 43, of Los Angeles; Sharon Stanley, aka Sharun Stanley, age 40, of Las Vegas; and Charlotte Brookins, age 34, of Las Vegas, with conspiracy to possess with the intent to distribute approximately two kilograms of cocaine; and charging in Count 2, with possession with the intent to distribute approximately two kilograms of cocaine.
This indictment is the result of an investigation by the Federal Bureau of Investigation, Ohio HIDTA, and the Cuyahoga County Sheriff’s Department into drug trafficking activities occurring in the greater Cleveland area and elsewhere. This case is being prosecuted by Assistant United States Attorneys Teresa Dirksen and Matthew Shephard.
If convicted, the defendants' sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal records, if any, 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.
Former Lakeland Student Indicted on Fraud ChargesRead the Press Release
A two-count indictment was filed charging a Cleveland woman with crimes related to the misuse of more than $6,000 in federal financial aid, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Tanya Oliver, 28, is charged with one count each of mail fraud and student aid fraud.
Oliver enrolled at Lakeland Community College in Kirtland, Ohio. During the 2007-2008 school year, Oliver fraudulently caused more than $6,000 in federal financial aid to be provided to Lakeland for the purposes of funding her education. Those monies were the basis for providing refunds to Oliver in the amount of $5,174.95, according to the indictment.
Oliver obtained the funds for the purpose of using the monies for her own personal use, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Christos M. Georgalis following an investigation by the U.S. Department of Education, Office of Inspector General.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.
In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.