Northern District of Ohio
Press releases recorded for this federal judicial district.
Former City of Cleveland Employee Indicted for ExtortionRead the Press Release
A former City of Cleveland employee was indicted on charges of Hobbs Act extortion for attempting to extort bribes from three companies in connection with his employment as a contract compliance officer, 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.
Lejon C. Woods, age 29, of Cleveland, is charged with three counts of extortion under color of official right.
“The businesses solicited by Woods were not involved in any type of illegal conduct,” Dettelbach said. “To the contrary, these companies should be commended because they came forward and contacted law enforcement when Woods made his bribe solicitations.”
The indictment charges that Woods, while acting in his capacity as a contract compliance officer with the City of Cleveland, solicited bribes from representatives of three local businesses, one of which was a nonprofit business, in connection with fines which were going to be imposed for non-compliance of contract requirements.
The conduct took place from May 18, 2010, through August 5, 2010, according to the indictment.
When City of Cleveland funds are used to pay for any part of a construction or rehabilitation project, the company involved in the project is subject to City of Cleveland, Office of Contract Compliance regulations relating to the hiring of certain percentages of minority business enterprises, disadvantaged business enterprises and city resident workers, according to the indictment.
The indictment alleges that at various times, Woods told representatives of the three companies that in exchange for a cash payment, Woods would alter records with the City of Cleveland to reflect compliance.
Woods obtained or attempted to obtain cash payments of $2,800, $3,000 and $1,200 from the respective companies, according to the indictment.The indictment is a result of an investigation conducted by the Federal Bureau of Investigation with assistance from the Cleveland Division of Police, Intelligence Unit. This case is being prosecuted by Assistant United States Attorney Henry F. DeBaggis.
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.
Bosnian Woman Charged with Naturalization FraudRead the Press Release
A grand jury returned a two-count indictment charging Divna Maslenjak, 50, with naturalization fraud and misuse of evidence of naturalization, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Maslenjak, while a citizen of Bosnia Herzegovina, made material false statements in her application and interview for naturalization by failing to acknowledge she had lied to government officials when applying for her refugee status.
The indictment further alleges that Maslenjak used her unlawfully obtained naturalization as a basis for assisting her husband in securing his lawful permanent resident status based upon their marriage.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Phillip J. Tripi and Margaret Sweeney, following investigation by agents of the U.S. Immigration and Customs Enforcement.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Kent Man Charged with Drug CrimesRead the Press Release
A federal grand jury returned a three-count indictment charging Mesawn Smith, aka "Butter", age 31, of Kent, Ohio, with distribution of crack cocaine and possession with intent to distribute crack cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about May 15 and May 25, 2012, Smith distributed less than 28 grams of crack cocaine. The indictment further charges that on or about November 2, 2012, Smith possessed with the intent to distribute more than 28 grams of crack cocaine.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives - Youngstown Field Office and the Akron Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Canton Man Sentenced to 14 Years in Prison for Eight Bank RobberiesRead the Press Release
A Canton man was sentenced to more than 14 years in prison after previously pleading guilty to eight bank robberies in Pennsylvania and Ohio, 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.
Benjamin G. Gates, age 34, was sentenced to 151 months in prison by U.S. District Judge James Gwin.
“This sentence should send a clear message to those who would think about robbing a bank,” Dettelbach said. Our law enforcement partners are to be commended for bringing an end to this wave of bank robberies.”
“This case reflects the valued partnership between the FBI’s Safe Streets Task Force and the citizens of Northern Ohio,” Anthony said. “Subsequent to the media’s rapid release of key information, the public provided invaluable leads resulting in the arrest of Benjamin Gates.”
The 2012 robberies Gates pleaded guilty to are as follows:
June 13: Citizens Bank, Pittsburgh.
June 25: Citizens Bank, Erie, Penn.
July 2: U.S. Bank, Canton, Ohio.
July 20: U.S. Bank, Cuyahoga Falls, Ohio.
July 27: Huntington Bank, Liberty, Ohio.
Aug. 3: Huntington Bank, North Canton, Ohio
Aug. 16: U.S. Bank, Cuyahoga Falls, Ohio
The investigation preceding the indictment was conducted by the following agencies: Federal Bureau of Investigation, Mahoning County Sheriff’s Office, Stark County Sheriff’s Office, Canton Police Department, North Canton Police Department, Jackson Township Police Department, Liberty Township Police Department and the Cuyahoga Falls Police Department.
The matter was prosecuted by Assistant United States Attorney Linda H. Barr.
Woman Charged with Theft of Government PropertyRead the Press Release
A grand jury returned a one-count indictment charging Gayle P. Braxton, 66, with theft of government property, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Braxton stole and converted to her own use $121,734 in Social Security payments made to a deceased payee which were deposited into a joint bank account of the deceased payee and Braxton.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the 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.
Woman Accused of Stealing More Than $40,000 in Government BenefitsRead the Press Release
A grand jury returned a seven-count indictment charging India N. Parker, 36, with several crimes related to the theft of more than $40,000 in government benefits.
Parker was indicted on two counts of theft of government property and five counts of making false statements. The indictment alleges that Parker stole and converted to her own use, $40,236 in Social Security payments made to a deceased payee and $1,393 in food stamp benefits.
The indictment further alleges that Parker made false statements to agency representatives by stating that her daughter had been living with her when, in fact, Parker knew that her daughter was deceased during the relevant time frames.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the Social Security Administration Office of Inspector General.
Two Ohio Men and Youngtown Company Are Indicted for Violating the Clean Water ActRead the Press Release
A federal grand jury returned an indictment charging two Ohio men and a Youngstown-based company each with one count of violating the Clean Water Act, said Steven M. Dettelbach, the United States Attorney for the Northern District of Ohio.
Benedict W. Lupo, 62, of Poland, Ohio, Michael L. Guesman, 34, of Cortland, Ohio, and Hardrock Excavating LLC are each accused of illegally discharging brine and oil-based drilling mud into a stormwater drain on numerous occasions. The drain flowed into an unnamed tributary of the Mahoning River and ultimately into the Mahoning River, according to the indictment.
The conduct took place between Nov. 1, 2012 and Jan. 31, 2013, according to the indictment.
“Clean, fresh water is our greatest resource in Northern Ohio,” Dettelbach said said “We will aggressively investigate and prosecute cases in which people pollute Ohio’s streams, rivers and lakes.”“We will continue to assist in the federal prosecution of this case but we will also pursue with the Ohio Department of Natural Resources any other violations of Ohio’s environmental protection laws,” said Ohio Attorney General Mike DeWine. “This case is a reminder that we should look at making state law equal to federal law when it comes to protecting the waters of Ohio.”
ODNR Director Jim Zehringer said: “As an agency that focuses strongly on protecting Ohio’s natural resources, ODNR takes illegal dumping of oilfield waste into Ohio waters very seriously, and this type of action will not be tolerated. We will continue to work with our local, state and federal partners to take swift and severe action when someone willingly–and with malice–decides that their private interests outweigh the rules and laws that serve the public and keep our environment safe.”
“This incident is very disappointing and one of a small percentage of egregious environmental violations we see at Ohio EPA that must be prosecuted criminally,” Ohio EPA Director Scott Nally said. “In this particular case, the evidence suggests multiple instances of deceptive and illegal conduct, without regard to human health and the environment. This general disregard for the law will not be tolerated in Ohio and we will work with our partners at the local, state and federal agencies to make sure the responsible parties are held accountable. ”
“As the nation increases its use of natural gas, exploration companies must ensure that the waste water resulting from the drilling process is treated and disposed of safely and legally,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “These defendants are alleged to have knowingly and repeatedly discharged stored brine and oil-based drilling mud into a stormwater drain which ultimately flowed into the Mahoning River. This case demonstrates that if companies and their senior managers try to save money by circumventing environmental laws, they will be vigorously prosecuted.”
According to the indictment and related court documents:
Hardrock Excavating LLC is owned by Lupo and located at 2761 Salt Springs Road in Youngstown. The company provides services to the oil and gas industry in Ohio and Pennsylvania, including the storage of brine and oil-based drilling mud. There are approximately 58 mobile storage tanks at the facility and each holds approximately 20,000 gallons.
Lupo, who owns Hardrock, directed employee Guesman to empty some of the waste liquid stored at the facility into a nearby wastewater drain on or about Nov. 1, 2012, according to the indictment.
Lupo directed Guesman to conduct this activity only after no one else was at the facility and only after dark, according to the indictment.
Guesman, at the direction of Lupo, emptied some of the waste liquid at the facility into the nearby stormwater drain using a hose on numerous occasions over the next several months, according to the indictment.
The last time Guesman emptied some of the waste liquid into the drain was on or about Jan. 31, 2013. The waste liquid that night included a mixture of brine and oil-based drilling mud. A sample of the discharge taken that night was black in color and a subsequent analysis showed the presence of several hazardous pollutants, including benzene and toluene, according to the indictment.
This case is being prosecuted by Special Assistant U.S. Attorney Brad Beeson following an investigation by the Ohio EPA, Ohio Department of Natural Resources, U.S. EPA, the Ohio Bureau of Criminal Investigation, the Youngstown Department of Public Works and the Youngstown Fire Department.
The statutory maximum for violating the Clean Water Act is for individuals is three years in prison, one year of supervised release and a fine of $50,000 per day of violation or $250,000, whichever is larger. For corporations, the statutory maximum is five years of probation and a fine of $50,000 per day of violation or $500,000, whichever is larger.
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 indictment 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 Clevelanders Accused of Defrauding Giant Eagle Out of $80,000Read the Press Release
Three Cleveland residents are accused of taking part in a conspiracy to defrauded Giant Eagle's payroll account out of approximately $80,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Paris Dixon age 28, was indicted on one count of conspiracy to commit wire fraud, seven counts of wire fraud, one count of credit card fraud, and one count of aggravated identity theft.
Sierra Hodges, age 27, was indicted one count of conspiracy to commit wire fraud, six counts of wire fraud, two counts of credit card fraud and one count of aggravated identity theft.
Linda Howard, age 25, was indicted on one count of conspiracy to commit Wire Fraud, three counts of Wire Fraud, and one count of Credit Card Fraud.
The indictment charges that from as early as November 8, 2008, until on or about August 11, 2010, Paris Dixon, Sierra Hodges, and Linda Howard devised a scheme to defraud Giant Eagle by accessing Giant Eagle Corporation’s employee payroll account without authority.
The indictment charges that the defendants made wire transfer charges on this account to pay for various goods and services for themselves or for family members or friends totaling approximately $80,000.
The indictment charges that from January 13, 2009, and on or about February 12, 2010, Paris Dixon with the intent to defraud, used one or more unauthorized access devices during a one year period, and by such conduct obtained anything of value aggregating $1,000 or more during that period.
The indictment charges that from December 9, 2008, until on or about December 14, 2009, Paris Dixon, during and in relation to the illegal use of access devices, knowingly used, without lawful authority, a means of identification of one or more other persons, knowing that said means of identification belonged to another person.
The indictment charges that from November, 2008, until December, 2009, Linda Howard, with the intent to defraud, used one or more unauthorized access devices during a one year period, and by such conduct obtained anything of value aggregating $1,000 or more during that period.
The indictment charges that from January 13, 2009, and on or about August 11, 2010, Sierra Hodges with the intent to defraud, used one or more unauthorized access devices during a one year period, and by such conduct obtained anything of value aggregating $1,000 or more during that period.
The indictment charges that from January 13, 2009, and on or about August 11, 2010, Sierra Hodges, during and in relation to illegal use of access devices, knowingly used, without lawful authority, a means of identification of one or more other persons, knowing that said means of identification belonged to another person.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to the case, including the defendants’ prior criminal records, if any, the defendants’ role(s) 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 Postal Inspection 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.
Pennsylvania Man Charged with Passing Counterfeit CurrencyRead the Press Release
A federal grand jury has returned an indictment charging William Smith, age 20, of Erie, Pennsylvania, with one count of passing counterfeit currency, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on July 14, 2012, William D. Smith passed counterfeit currency at a Burger King restaurant in Middleburg Heights, Ohio.
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 prosecuted 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.
Heroin Charges Filed on Detroit ManRead the Press Release
A federal grand jury sitting returned a one-count indictment charging Reginald G. Davis, age 61, of Detroit, Michigan, with possession with the intent to distribute heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about February 6, 2013, Reginald G. Davis possessed with the intent to distribute more than 100 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.
Five Cleveland Men Indicted on Federal Firearms ChargesRead the Press Release
Five Cleveland men were indicted on charges of being felons in possession of a firearm or ammunition, said U.S. Attorney Steven M. Dettelbach.
The cases are unrelated. Those indicted are: Kevin M. Bembry, age 28; Alfred Jones, Jr., age 31; Vincent Pickett, age 26; Allen L. Tyes, age 33, and Richard Warren, age 47.
“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 who uses 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.”
Bembry possessed a .357-caliber revolver on Jan. 24 despite a previous conviction for attempted felonious assault, according to the indictment.
Jones possessed a .380-caliber pistol and nine rounds of ammunition on Jan. 15, despite previous convictions for drug trafficking and involuntary manslaughter, according to the indictment.
Pickett possessed a 12-gauge shotgun shell on Feb. 13, despite previous convictions for aggravated robbery with a firearms specification and aggravated burglary with a firearms specification, according to the indictment.
Tyes possessed a .45-caliber pistol and ammunition on Feb. 11, despite previous convictions for attempted felonious assault and being a felon in possession of a firearm, according to the indictment.
Warren possessed a .45-caliber revolver and ammunition on Jan. 8, despite previous convictions for aggravated robbery, felonious assault and aggravated burglary, according to the indictment.These cases are being prosecuted by Assistant United States Attorney Kelly L. Galvin following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cleveland Division of Police, East Cleveland Police, the Cuyahoga Metropolitan Housing Authority Police and the Ohio Adult Parole Authority.
Criminal Charges Related to Oxycodone Filed on Canton ManRead the Press Release
A Canton man was indicted on three counts related to the distribution of Oxycodone, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Christos Karasarides, age 47, was charged with possession with the intent to distribute approximately 40 grams (141 pills) of Oxycodone; possession of Oxycodone and using and maintaining a residence in Canton, Ohio, for the purposes of distributing and using Oxycodone.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Samuel A. Yannucci.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Man Charged with Theft of Government PropertyRead the Press Release
A grand jury returned a one-count indictment charging Victor A. Fields, 57, with theft of government property, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Fields, of Cleveland, stole and converted to his own use $25,958 in Social Security payments made to a deceased payee.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the 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.
Mexican Man Charged with Illegal ReentryRead the Press Release
A criminal information was filed against Pedro Barrios-Hernandez, aka Faraon Castillo-Hernandez, age 38, of Mexico, charging him with unlawful reentry into the United States on February 10, 2013, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Border Patrol, Port Clinton, Ohio. The case is being handled by Assistant United States Attorney Alissa M. Sterling.
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.
Man Indicted for Illegal ReentryRead the Press Release
A grand jury returned a one-count indictment charging Luis Manuel Diaz-Quintero, 24, with illegally reentering the United States following his deportation, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Diaz-Quintero is an alien who was previously removed or deported from the United States on February 2, 2010, after having been previously convicted of one or more felonies.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the U.S. Immigration and Customs Enforcement.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Toledo Woman Sentenced to Two Years in Prison, Ordered to Pay $505,777 After Stealing from ChurchRead the Press Release
A Toledo woman was sentenced to two years in prison and ordered to pay $505,777 in restitution after previously admitting to stealing from Gesu Parish in Toledo, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Patricia Stanz, 61, was also sentenced to two years of supervised release by U.S. District Judge James Carr.
“This person abused the trust of her employer and the entire congregation,” Dettelbach said. “This sentence should send a message to those who would abuse the trust of friends, relatives or coworkers to enrich themselves.”
Stanz pleaded guilty last year to one count each of counterfeit securities and fraudulent use of a an access device (credit card).
From August 2007 to August 2011, Stanz was the business manager for the Gesu Parish, Toledo, Ohio, according to court documents.
She created and signed – without authorization – nearly 100 checks totaling approximately $295,000 from the Gesu Parish checking account with the intent to deceive the Fifth Third Bank. She also fraudulently used a credit card issued to Gesu Parish obtaining approximately $230,000 in cash advances and purchases, according to court documents.
This case was investigated by the Federal Bureau of Investigation and handled by Assistant United States Attorney Thomas A. Karol.
Sheffield Man Sentenced to 18 Months in Prison for Scheme Involving ATVsRead the Press Release
Nicholas J. Henry, age 29, of Sheffield, Ohio, was sentenced today to 18 months in prison and ordered to pay restitution in the amount of $220,532.64 as a result of his recent conviction for wire fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.Henry was also ordered to serve a three year period of supervised release following his release from prison and was ordered to pay a $100 special assessment to the Crime Victims’ Fund.
On May 22, 2012, a federal grand jury in Cleveland, Ohio, returned an indictment which charged that from on or about January 1, 2005, through on or about October 15, 2009, Henry knowingly devised a scheme and artifice to defraud, and to obtain money and property by means of false and fraudulent pretenses, representations and promises, and that in executing said scheme and artifice, knowingly caused funds to be transmitted from the victims to Henry by means of interstate wire communications. Henry entered a guilty plea to wire fraud on October 23, 2012.
Henry advertised the sale of certain All Terrain Vehicles (“ATVs”) and scooters via an Internet website, and used the business names “China Vehicle Company LTD” and “Scooter Direct.” China Vehicle Company LTD., and Scooter Direct were not incorporated entities with the Ohio Secretary of State’s Office and were not registered as limited liability companies in Ohio. Henry targeted his solicitations primarily towards automobile dealerships throughout the United States, offering to sell vehicles such as ATVs and scooters manufactured in China at a “discounted” price, for resale to the public, according to court documents.
Henry directed the customers to make full or partial payments for the ATVs and scooters by sending wire transfers of funds to his personal bank accounts. Henry would immediately take his full commission upon receiving payment from the automobile dealerships, and prior to receiving the shipment of ATVs and scooters from China, according to court documents.
Despite receiving payment and taking his commission for the transactions, Henry failed to provide ATVs and scooters to the automobile dealerships as agreed. Instead, Henry made repeated excuses to some dealerships for his failure to deliver the merchandise as agreed, and eventually failed to respond to inquiries and complaints from the customers. Despite his inability to deliver ATVs and scooters to the dealerships as promised, Henry nonetheless continued advertising, soliciting additional sales, and entering into sales contracts with additional dealerships throughout the period covered in the indictment.
Between January 1, 2005, and October 15, 2009, Henry received at least 36 wire transfers of funds from the dealerships as payment for ATVs and scooters which HENRY negotiated on behalf of the “China Vehicle Company LTD.,” totaling over $266,000. Henry failed to refund or return payments received for merchandise not delivered to the victim dealerships, but rather took a 20-25 percent commission immediately upon receipt of the payments. Henry later withdrew, spent and converted to his own use, the funds from the wire transfers initiated by the dealerships totaling over $143,000, according to court documents.
Between September 25, 2008, and October 15, 2009, Henry received wire transfers for “new” orders from victim dealerships totaling approximately $79,644. During this time, Henry made no attempt to secure scooters from China and made no payments to the manufacturer. Instead, Henry used the funds received from the victims to pay personal bills and expenses including rent, car payments, utilities and other personal expenses, according to court documents.
This case was prosecuted by Assistant United States Attorneys Carol M. Skutnik and Robert W. Kern. The case was investigated by the Elyria Office of the Federal Bureau of Investigation.
Bath Township Man Sentenced to 18 Months in Prison for Evading Nearly $400,000 in TaxesRead the Press Release
John W. Hufgard was sentenced to 18 months of incarceration and ordered to pay restitution of $397,659, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Hufgard, age 59, of Bath Township, was also sentenced to two years of supervised release by U.S. District Judge Patricia A. Gaughan.
Hufgard pleaded guiltt to three counts of income tax evasion (for the 2007, 2008 and 2009 income tax years) on November 26, 2012.
Hufgard was the sole proprietor of Universal Service and Repair, Limited. Hufgard sold manufacturing racks to metal scrap dealers, and failed to report the proceeds on his federal income tax returns. Hufgard concealed his scheme by selling racks for cash, by depositing business income into his personal account, business income diverted into his personal account, and falsely recording business income as short term loans from himself, according to court documents.
He also tried to conceal his scheme by moving large amounts of scrapped metal racks, long distances, to scrap dealers who were willing to pay him in cash rather than using unknown dealers who might pay by check, according to court documents.
Through this scheme, Hufgard evaded approximately $397,659 in federal taxes.
This case is being prosecuted by Special Assistant United States Attorney Perry D. Mastrocola, following an investigation by the Internal Revenue Service Criminal Investigation Division.
Two Women Charged with Housing IntimidationRead the Press Release
A criminal information was filed in United States District Court charging Amber Mohan and Michelle Snyder with interfering with and intimidating an individual’s right to enjoy housing because of that individual’s race, religion, and national origin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Mohan, 27, resides in Cleveland, while Snyder, 33, resides in Cuyahoga Falls, Ohio, according to public records. They are accused of violating Title 42, United States Code, Section 3631.
“In this country, people are free to live where they want, free from harassment and threats,” Dettelbach said. “Those who have not gotten the message and break the law will be prosecuted.”
“As evidenced by this investigation, the FBI aggressively and thoroughly pursues all allegations of civil rights violations. The actions outlined in the charges are simply unacceptable and no one should be subjected to these types of threats and intimidation.”
The information, along with evidence available to the United States Attorney’s Office, reflects that on or about December 1, 2009, Mohan, Snyder and one other individual already charged, planned and carried out the hanging of a toy camel from a noose, and affixed that to the door of an individual, identified in the Information as A.F.A., who is of Arabic descent and a Muslim.
The crime occurred at A.F.A.’s apartment at the Stonebridge Apartments, located at 1500 Detroit Ave. in Cleveland. A.F.A. was selected as a target of Mohan and Snyder’s conduct because of A.F.A.’s race, religion, and national origin, according to the information.
The charge against Mohan and Snyder carries maximum penalties of up to one year in prison, a fine of $100,000, and up to one year of supervised release. 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.
This case is being prosecuted by assistant U.S. Attorney James V. Moroney, following an investigation by the Civil Rights Unit of the Federal Bureau of Investigation.
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.
Local Couple Pleads Guilty to Theft of Copper from Radio TowersRead the Press Release
Two people pleaded guilty to malicious destruction of federally-licensed communications lines related to the theft of copper from four local radio towers, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“These defendants admitted to breaking into and seriously damaging radio towers,” Dettelbach said. “We will continue to protect the infrastructure in our region.”
Thomas M. Carbone, 28, of North Royalton, and Katie M. Stanton, 23, of Cleveland, are scheduled to be sentenced on April 30.
On or about August 17 to 18, 2012, Carbone and Stanton unlawfully entered the property of Radio One on Ridge Road in North Royalton, Ohio, and willfully and maliciously destroyed and removed copper material from four radio-station towers situated on the property, according to court documents.
This unlawful removal of copper depleted the signal strength of the supported radio station, thereby impeding the station’s ability to broadcast emergency messages, according to court documents.
Emergency repairs cost nearly $11,000 while permanent repairs will cost an estimated $125,000, although specific figures are still being calculated, according to court documents.
This case is being prosecuted by Assistant United States Attorneys Thomas E. Getz and M. Kendra Klump. The case was investigated by the Federal Bureau of Investigation and the North Royalton Police Department.
Massillon Man Charged with Bank RobberyRead the Press Release
A federal grand jury returned a one-count indictment charging Alexander D. Love, age 21, of Massillon, Ohio, with bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on January 10, 2013, Love robbed the Charter One Bank located at 54 Federal Avenue, NE, Massillon, Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. The sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The matter was investigated by the Massillon Police Department and the Federal Bureau of Investigation’s Canton Office. The case is being prosecuted by Trial Attorney Kevin Culum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Elyria Man Charged with Illegal ReentryRead the Press Release
A federal grand jury has returned an indictment charging Natividad Mundo, age 51, formerly of Elyria, Ohio, with illegally reentering the United States following her deportation, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on April 17, 2012, Natividad Mundo was removed and deported from the United States following convictions for aggravated trafficking in cocaine and conspiracy to commit aggravated trafficking in cocaine. The indictment alleges Mundo subsequently illegally re-entered the United States and was found in Lorain County.
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 Border Patrol.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cuyahoga Falls Man Charged with Theft of Public Money and Identity TheftRead the Press Release
A federal grand jury sitting returned a two-count indictment charging Joshua Papai, age 44, of Cuyahoga Falls, Ohio, with one count of theft of public money, and one count of identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that between December 31, 2008, and April 30, 2010, Papai received approximately $61,129.40 in disability benefits from the Department of Veteran’s Affairs, to which he was not entitled. During this period, the indictment alleges that Papai worked at various times as a snow plower, roofer, home health care aid, and state-tested nursing assistant throughout that time period.
The indictment also charges that on August 4, 2008, Papai used another person’s Social Security account number to open a bank account in a fictitious name. Joshua Papai used this account to hide employment earnings to which he was not entitled because he was receiving disability.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the 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 Trial Attorney Ian D. Hoffman following an investigation by the Department of Veteran’s Affairs, Office of the Inspector General.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Ohio Man Charged with Violating Clean Water Act by Discharing Brine and Drilling Mud into Mahoning RiverRead the Press Release
A Poland, Ohio, man was charged in federal court with one count of violating the Clean Water Act, said Steven M. Dettelbach, the United States Attorney for the Northern District of Ohio.
Ben Lupo, 62, is accused of directing an employee to illegally discharge brine and oil-based drilling mud into a stormwater drain which flowed into an unnamed tributary of the Mahoning River and ultimately into the Mahoning River near Youngstown.
The conduct took place on Jan. 31, 2013, according to an affidavit filed in U.S. District Court.“Those of us from Northeast Ohio know the legacy of dumping industrial waste into our waterways,” Dettelbach said. “Whether our water flows south to the Ohio River or north to the Great Lakes, protecting and preserving clean and safe water remains a major priority of the my office and the Department of Justice.”
ODNR Director Jim Zehringer said: “This charge should serve as a warning to anyone that places their personal interests ahead of the public’s safety. ODNR will continue to aggressively pursue and seek prosecution of any business or individual that blatantly disregards the laws we have in place to protect Ohio’s communities and natural resources.”
“Knowingly polluting the waters of our state is a violation of the Clean Water Act and we will pursue criminal prosecution of these illegal actions to make sure we are able to protect the health and safety of the public,” Ohio EPA Director Scott Nally said. “Ohio EPA and our state partners will not tolerate the flagrant violation of Ohio’s environmental laws and companies who violate these lawsare jeopardizing their ability to conduct business in the state and will be held accountable.”
Ohio Attorney General Mike DeWine said: “Ohio’s waters must be protected, for the health and safety of its citizens and the state’s wildlife. We will not only assist with the federal water pollution prosecution in this case, we will also be working closely with the Ohio Department of Natural Resources to fully address all of the other violations through civil or criminal enforcement.”
“As the nation increases its use of natural gas, exploration companies must ensure that the waste water resulting from the drilling process is treated and disposed of safely and legally,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “The defendant is alleged to have knowingly and repeatedly directed the discharge of stored brine and oil-based drilling mud into a stormwater drain which ultimately flowed into the Mahoning River. This case demonstrates that if companies and their senior managers try to save money by circumventing environmental laws, they will be vigorously prosecuted.”
According to an affidavit filed in federal court:
Hardrock Excavating LLC is owned by Lupo and located at 2761 Salt Springs Road in Youngstown. The company provides services to the oil and gas industry in Ohio and Pennsylvania, including the storage of brine and oil-based drilling mud. There are approximately 58 mobile storage tanks at the facility and each holds approximately 20,000 gallons.
The Ohio Department of Natural Resources received a call from an anonymous person who stated that on the night of Jan. 31, 2013, someone would be illegally discharging wastewater from the Hardrock facility.
Ohio DNR inspectors arrived and found a hose, connected to a storage tank, discharging wastewater into a stormwater drain at the facility. Inspectors took a sample of the wastewater, which was black in color.
Ohio EPA personnel arrived at the facility on Feb. 1 and found that the unnamed tributary had puddles of oil throughout its length, from where the stormwater drained to the Mahoning River, approximately one mile away. Oil and an oily sheen were also visible in the Mahoning River.
That day, an EPA representative spoke with Lupo about the discharge into the storm drain. Lupo admitted he directed a Hardrock employee to discharge the contents of the storage drain into the stormwater drain, and further admitted that he directed discharge from a storage tank a total of six times, according to the affidavit.
Lupo later told EPA and DNR personnel that he directed a Hardrock employee to drain storage tanks at Hardrock into the nearby stormwater drain six times over the previous six months, and that Lupo was the one who “gave the word” for the storage tanks to be discharged, according to the affidavit.
On Feb. 12, a Hardrock employee stated that the discharges began in November 2012 at the direction of Lupo and that the employee was aware of at least 20 discharges into the stormwater drain. The employee further stated that Lupo directed the employee , if questioned by authorities, to state that the discharges were limited to a total of four to six times , according to the affidavit.
This case is being prosecuted by Special Assistant U.S. Attorney Brad Beeson following an investigation by the Ohio EPA, Ohio Department of Natural Resources, U.S. EPA, the Ohio Bureau of Criminal Investigation, the Youngstown Department of Public Works and the Youngstown Fire Department.
The statutory maximum for violating the Clean Water Act is three years in prison, a $250,000 fine and one year of supervised release.
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.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Twinsburg Man Indicted on Tax Charges for $8.8 Million SchemeRead the Press Release
A federal grand jury returned a 31-count indictment charging a Brian D. Krantz with crimes related to filing income tax refunds totaling more than $8.8 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Darryl Williams, IRS-Criminal Investigation Special Agent in Charge.
Krantz is 45 and resides in Twinsburg, Ohio, according to court records. He was indicted on one count of conspiring to make false claims against the United States and 30 counts of making false claims for income tax refunds totaling approximately $8,825,147, according to the indictment.
The U.S. Treasury issued 17 refund checks totaling approximately $3,615,586 payable to Krantz and various corporations controlled by Krantz as a result of the alleged scheme, according to the indictment.
“This defendant is accused of violating tax laws to enrich himself,” Dettelbach said. “Those individuals who engage in this type of financial fraud should know they will not go undetected and will be brought to justice.”
Williams added: “Today’s indictment proves that stealing from the government is a serious crime. It sends an important message to America’s taxpayers who play by the rules that we have no tolerance for those who make up their own rules.”
The indictment names Bryan D. McCallum as Krantz’s co-conspirator. McCallum previously pleaded guilty to a two-count information charging him with the false claims conspiracy and with making the same 30 false claims.
During the years charged in the indictment, Krantz owned and controlled two corporations engaged in financial services and/or real estate investment business activities, in which he employed McCallum as an accountant / bookkeeper.
The indictment charges that from approximately April 2009 through June 8, 2010, Krantz and McCallum conspired to make false claims for tax refunds using income tax returns filed with the IRS in the names of Krantz, companies formed by Krantz and McCallum, and several “shelf” companies purchased by Krantz. A “shelf” company is a corporate or other formal non-operating business entity established for the purpose of being held for sale to another person.
The scheme involved the use of fake IRS Forms 2439, titled “Notice to Shareholder of Undistributed Long-Term Capital,” which is a form to be issued by a regulated investment company (RIC) or real estate investment trust (REIT) to report undistributed capital gains and taxes withheld from those gains on behalf of the shareholders. Under federal tax law, RICs and REITs are entities that are not taxed on their earnings but instead pass those earnings to their shareholders who, in turn, have the obligation to report those earnings and any resulting tax liabilities on the shareholders’ income tax returns. The returns filed pursuant to the conspiracy claimed substantial amounts of Form 2439 withholding credits, when, in fact, none of the companies listed on the forms were actually RICs or REITs or had any undistributed capital gains or withheld taxes.
According to the indictment, Krantz used more than $1 million of the refund proceeds to finance a real estate venture he established with other partners, known as Phoenix Ventures Partners LLC. Krantz and McCallum misled Krantz’s real estate partners to believe that a group of Colorada-based hard money lenders had provided the funds.
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 government’s case is being prosecuted by Assistant United States Attorneys John M. Siegel and Justin J. Roberts, following an investigation by the Internal Revenue Service, Criminal Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Man Faces Additional Charge of Being A Felon in Possession of A FirearmRead the Press Release
A superseding indictment was filed adding an additional charge of being a felon in possession against Raymone “Ramone” Clements, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Clements, 42, of Cleveland, was indicted last month on a charge of being a felon in possession of ammunition. Clements was found to have one round of .357-caliber ammunition and two rounds of .22-caliber ammunition on Dec. 20, 2012, despite previous convictions in the Cuyahoga County Court of Common Pleas for rape (2006), drug trafficking (2003) and aggravated robbery (1991), according to the indictment.
A second count has been added, charging that on or about Jan. 17, 2013, Clements had possession of a Rossi, Model Garrucha, .22-caliber Derringer, serial number 307228, despite the aforementioned convictions.
“This office places a high priority on keeping firearms and ammunition out of the hands of those who are forbidden by law from obtaining them,” 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.
The Unites States Attorney’s Office for the Northern District of Ohio filed 176 indictments for violations of federal firearms laws last year, with the average sentence being more than six years in prison.
This case is being prosecuted by Assistant U.S. Attorney Kelly L. Galvin following an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives and Cleveland Heights Police Department.
The charge carries a maximum penalty of 10 years in prison. If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, the defendant’s role in the offenses and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sixteen People Sentenced to Prison for Federal Hate CrimesRead the Press Release
Sixteen people were sentenced to prison today for hate crimes arising out of a series of religiously-motivated assaults on practitioners of the Amish religion, announced Thomas E. Perez, the Assistant Attorney General for the Civil Rights Division; Steven M. Dettelbach, the U.S. Attorney for the Northern District of Ohio; and Stephen Anthony, Special Agent in Charge of the FBI – Cleveland Field Office.
The defendants all reside in Bergholz, Ohio, unless otherwise noted. Samuel Mullet, 67, received a 15 year sentence. Johnny S. Mullet, 39; Lester Mullet, 28, of Hammondsville, Ohio; Levi F. Miller, 54; and Eli M. Miller, 33, received seven year sentences. Daniel S. Mullet, 38; Lester Miller, 38; and Emanuel Schrock, 44, received five year sentences. Raymond Miller, 28, of Irondale, Ohio; and Linda Shrock, 45, both received two year sentences. Freeman Burkholder, 32, of Irondale; Anna Miller, 33; Elizabeth A. Miller, 38, of Irondale; Emma J. Miller, 38; Kathryn Miller, 23, of Irondale; and Lovina Miller, 33, all received a sentence of one year and one day.A jury found the defendants guilty last September following a lengthy trial. The convictions stem from five separate assaults that occurred in four Ohio counties between September and November 2011. In each assault, defendants forcibly removed beard and head hair from practitioners of the Amish faith with whom they had ongoing religious disputes.
The manner in which Amish men wear their beards and Amish women wear their hair are symbols of their faith, according to trial testimony.
Samuel Mullet Sr., Johnny S. Mullet, Daniel S. Mullet, Lester S. Mullet, Levi F. Miller, Eli M. Miller, Emanuel Shrock, Lester Miller, Raymond Miller, Freeman Burkholder, Anna Miller and Linda Shrock were convicted of conspiracy to violate Title 18, U.S. Code, Section 249, also known as the Matthew Shepard-James Byrd Hate Crimes Prevention Act, which prohibits any person from willfully causing bodily injury to any person, or attempting to do so by use of a dangerous weapon, because of the actual or perceived religion of that person, and Title 18, United States Code, Section 1512, which prohibits obstruction of justice, including witness tampering and the destruction or concealment of evidence.
The jury also convicted various groups of defendants with separate assaults, and Samuel Mullet Sr. and Lester Mullet with concealing or attempting to conceal various items of tangible evidence, including a camera and photographs of the attacks.
Samuel Mullet Sr. is the Bishop of the Amish community in Bergholz, while the remaining defendants are all members of that community. Mullet Sr. exerted control over the Bergholz community by taking the wives of other men into his home, and by overseeing various means of disciplining community members, including corporal punishment, according to trial testimony.As a result of religious disputes with other members of the Ohio Amish community, the defendants planned and carried out a series of assaults on their perceived religious enemies. The assaults involved the use of hired drivers, either by the defendants or the alleged victims, because practitioners of the Amish religion do not operate motor vehicles. The assaults all entailed using scissors and battery-powered clippers to forcibly cut or shave the beard hair of the male victims and the head hair of the female victims, according to trial testimony.
During each assault, the defendants restrained and held down the victims. During some of the assaults, the defendants injured individuals who attempted to intervene to protect or rescue the victims. Following the attacks, some of the defendants participated in discussions about concealing photographs and other evidence of the assaults, according to evidence presented at trial.
“From the time of its founding as a nation, the United States of America has always been a beacon for those who seek religious freedom,” said Assistant Attorney General Perez. “The Department of Justice and the Civil Rights Division will vigorously defend every American’s right to worship in the manner of their choosing, including the members of the defendants’ community. However, violent assaults are not a form of religious expression. The actions of the defendants were designed to terrorize the victims, desecrate sacred symbols of their faith, and interfere with their right to worship. These prosecutions reflect the fact that the Department of Justice will not tolerate religiously motivated violence.”
“From day one, this case has been about the rule of law and defending the right of people to worship in peace. This was never about ‘haircuts.’ These were violent, religiously motivated home invasions that left the victims bloody, bruised and beaten,” said U.S. Attorney Dettlebach. “Our nation was founded on the bedrock principle that everyone is free to worship how they see fit. Violent attempts to attack this most basic freedom have no place in our country.”
“This case is an excellent example of cooperation between the many law enforcement agencies that investigated these crimes, along with the prosecution team from the United States Attorney’s Office and the Department of Justice,” said FBI Special Agent in Charge Anthony. “The FBI is committed to investigating hate crimes, including those perpetrated against people motivated by bias toward religion as in this case, or other areas protected by our civil rights statutes.”
This case was investigated by the Cleveland Division of the FBI and was prosecuted by Assistant U.S. Attorneys Thomas Getz and Bridget M. Brennan of the U.S. Attorney’s Office for the Northern District of Ohio and Deputy Chief Kristy Parker of the Civil Rights Division’s Criminal Section. The prosecutor’s and sheriff’s offices from Holmes, Carroll, Jefferson and Trumbull counties also provided significant assistance in the investigation and prosecution of this case.
Toledo Man Faces Child Pornography IndictmentRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that an indictment was filed against Matthew A. Butler, age 29, of Toledo, Ohio. The charges relate to receipt, distribution, and possession of child pornography between November 18, 2011 and June 27, 2012.
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 States Secret Service, Toledo, Ohio. The case is being handled by Assistant United States Attorney Alissa M. Sterling
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Men Charged with Illegally Re-Entering the U.S.Read the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that criminal charges were filed against two men accused in separate incidents of illegally re-entering the United States following deportation or removal.
An indictment alleges that on Jan. 5, 2013, Hector Sanchez-Soto, 47, formerly of Cleveland, was illegally present in the United States after previously being deported subsequent to a conviction for the commission of illegal re-entry following deportation or removal.
Another indictment alleges that on Jan. 7, 2013, Concepcion Quevedo-Rodriguez, age 44, of Guatemala, was illegally present in the United States after previously being deported subsequent to a conviction for the commission of illegal re-entry following deportation or removal.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.The Sanchez-Soto case is being handled by Assistant United States Attorney Lauren Bell after investigation by United States Immigration and Customs Enforcement.
The Queved0-Rodriguez case is being handled by Assistant United States Attorney Alissa M. Sterling following an investigation by United States Border Patrol, Sandusky, Ohio.
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.
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.
Toledo Man Charged with Theft of Mail by A Postal EmployeeRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that an information was filed against Deldre L. Jordan, age 40, of Toledo, Ohio. The charge relates to theft of mail by a postal employee beginning on or about January 2012 and continuing to March 23, 2012.
If convicted, 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 Office of Inspector General, United States Postal Service. The case is being handled by Assistant United States Attorney Angelita Cruz Bridges.
An information is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Tax Charges Filed Against Man Who Operated Toledo-Area Gas Stations and Convenience StoresRead the Press Release
A Holland, Ohio, man was indicted on four tax counts related to his failure to claim more than $460,000 in taxable income, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Mohamed Tawfik, 41, was the president of several companies that operated gas stations and convenience stores in the Toledo area. Those companies included Moe’s of Ohio, Inc., MKSA South Inc., M. Khalid, Inc., M. Adla Sylvania, Inc. and Rocket Fuel of Toledo, Inc., according to the indictment.
Tawfik is charged is one count of failure to file a corporate tax return and three counts of tax evasion.
He failed to file a tax return for one of his businesses in 2006, according to the indictment.
For tax years 2007, 2008 and 2009, Tawfik underreported his income by approximately $460,000, resulting in unpaid taxes of approximately $150,000, according to the indictment.
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.
Ravenna Man Sentenced to 20 Years in Prison for Drug and Firearms ConvictionsRead the Press Release
A Ravenna man was sentenced to 20 years in federal prison for being a felon in possession of firearms and ammunition and possessing with intent to distribute crack cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Darnell C. Butcher, 50, was previously found guilty of those crimes following a jury trail before U.S. District Judge Christopher Boyko.
"This defendant was a longtime scourge to the residents of Ravenna," Dettelbach said. "This sentence will make it easier for them to live, work and play in peace."
Butcher possessed a Tanfoglio Giuseppe, model GT32, .32 caliber pistol; a Ruger, model Mark II, .22 caliber pistol; an RG Industries, model RGI, .22 caliber pistol; and ammunition, on or about April 8, 2011, despite previous convictions for possession of cocaine and trafficking in cocaine, in the Court of Common Pleas of Portage County, Ohio.
On the same day, Butcher possessed with the intent to distribute approximately 12.1 grams of crack cocaine, according to court documents and testimony.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives - Youngstown Field Office, the Ravenna Police Department and the Metro SWAT Team. The matter was prosecuted by Assistant United States Attorneys Kelly Galvin and Chelsea Rice.
Heroin and Firearms Charges Filed Against Akron ManRead the Press Release
A federal grand jury returned an indictment charging Ernest Gaines, of Akron, with four counts related to the distribution of heroin and illegally having a firearm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Gaines, 45, was charged with with one count of possession with intent to distribute 100 grams or more of heroin, one count of using and maintaining a premises for the purpose of manufacturing and distributing heroin, one count of being a felon in possession of firearms and ammunition, and one count of conspiracy to distribute and to possess with the intent to distribute 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 violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation was conducted under the U.S. Attorney’s Organized Crime Drug Enforcement Task Force, which is part of a national program that seeks to identify, investigate and prosecute significant drug trafficking enterprises by utilizing multiple investigative and prosecuted resources.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration, the Akron Police Department Street Narcotics Uniformed Detail, and the Summit County High Intensity Drug Trafficking Area initiative. The case is being prosecuted by Assistant United States Attorney Samuel A. Yannucci.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Firearms Charges Filed Against Three MenRead the Press Release
Three men were indicted on federal firearms charges, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Joshua Burgess, age 21, of Niles, Ohio, was charged with one count of being a felon in possession of a firearm and ammunition.
The indictment charges that on or about October 28, 2012, Burgess possessed a Rossi, .22 caliber revolver and ammunition, after he had been previously convicted of burglary in the Trumbull County, Ohio, Court of Common Pleas.
Donte Butcher, age 24, of Ravenna, Ohio, was charged with being a felon in possession of firearms and ammunition.
The indictment charges that on or about June 12, 2012, Butcher possessed a Cobra Enterprises, model FS380, .380 caliber semi-automatic pistol, a Glock, model 23, .40 caliber semi-automatic pistol, and ammunition, after he had been previously convicted of felonious assault in the Portage County, Ohio, Court of Common Pleas.
Harold Travis, age 44, of Warren, Ohio, was charged with one count each of being a felon in possession of firearms and ammunition and possession with the intent to distribute heroin.
The indictment charges that on or about June 18, 2012, Travis possessed a Glock, Model 19, 9mm pistol, a Remington, Model 870, 12 gauge shotgun, four rounds of Remington 9mm ammunition; five rounds of Winchester 9mm ammunition; two rounds of Remington 12 gauge ammunition and two rounds of Winchester 12 gauge ammunition. This came after he had been previously convicted of robbery and possession with intent to distribute cocaine in the Michigan Third Judicial Circuit Court, and with being a felon in possession of a firearm, in the U.S. District Court, Northern District of Ohio.
The indictment further charges that on or about June 18, 2012, Travis possessed with the intent to distribute approximately 14.9 grams of heroin.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, 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 investigations preceding the indictments were conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives - Youngstown Field Office, the Austintown Police Department, the Ravenna Police Department and the United States Marshal Service’s Violent Fugitive Task Force. The matters are 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.
Columbia Station Man Indicted on Child Pornography, Extortion and Identity Theft ChargesRead the Press Release
A federal grand jury returned an 11-count indictment charging William T. Koch, age 23, of Columbia Station, Ohio, with producing and pandering child pornography, extortion and identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges from on or about December 19, 2010 through on or about September 18, 2012, Koch attempted to coerce four different minors to engage in sexually explicit conduct, for the purpose of producing visual depictions of such conduct; knowing and having reason to know that such visual depictions would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce.
The indictment further charges or about September 9, 2012, Koch used, persuaded, induced, enticed and coerced a fifth minor to engage in sexually explicit conduct for the purpose of transmitting a live visual depiction of such conduct, knowing and having reason to know that such visual depiction would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce.
The indictment further charges on or about September 9, 2012, Koch attempted to coerce that same minor to engage in sexually explicit conduct with his ten-year-old brother, for the purpose of transmitting a live visual depiction of such conduct, knowing and having reason to know that such visual depiction would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce.
The indictment further charges or about September 9, 2012, Koch distributed, in and affecting interstate and foreign commerce, by computer, any material in a manner that reflected the belief and was intended to cause another to believe that the material was a visual depiction of an actual minor engaging in sexually explicit conduct.
The indictment further charges from or about September 9, 2012 through on or about September 18, 2012, Koch with the intent to extort a thing of value from three of the aforementioned minors, transmitted in interstate and foreign commerce, communications threatening to injure the reputations of said minors.
The indictment further charges that from on or about December 19, 2010, through on or about September 13, 2012, Koch knowingly used, without lawful authority, in and affecting interstate and foreign commerce, a means of identification of another person, with the intent to commit, and in connection with, three of the offenses charged in the indictment.If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan.
The case was investigated by the Federal Bureau of Investigation and 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.
Akron Man Charged with Bank Robbery, Carjacking and Firearms ViolationsRead the Press Release
A federal grand jury returned a six-count indictment charging Robert E. Campbell, Jr., age 31, of Akron, Ohio, with three bank robberies in the Summit County area, one count of being a felon in possession of a firearm and ammunition, one count of carjacking, and one count of brandishing a firearm during the commission of a violent crime, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Campbell is accused of robbing the Charter One Bank on East Waterloo Road, the First Merit Bank on Wedgewood Drive and the US Bank on Manchester Road, all within a three-day period.
With the assistance of the Akron Police Department, Campbell was identified through bank surveillance photos. When located, Campbell carjacked a vehicle at gunpoint and led Summit County Sheriff’s Deputies on a slow-speed chase through the Kenmore area which resulted in him striking two vehicles, which resulted in injuries to some occupants. Campbell was then apprehended by Summit County Sheriff’s Deputies.
If convicted, Campbell’s sentence will be determined by the Court after review of factors unique to this case, including his prior criminal record, if any, his role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Teresa Dirksen following an investigation by the Akron Police Department, Federal Bureau of Investigation, U.S. Marshal’s Service, Bureau of Alcohol, Tobacco and Firearms and Summit County Sheriff’s Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Businessman Eddy Zai Sentenced to More Than Seven Years in Prison, Ordered to Repay $23 Million for Credit Union FraudRead the Press Release
Local businessman A. Eddy Zai was sentenced to more than seven years in prison and ordered to forfeit more than $23 million after he previously pleaded guilty to nine counts related to his participation in a fraud against St. Paul Croatian Federal Credit Union, law enforcement officials said.
“Mr. Zai held himself out to the community as a successful entrepreneur, when in reality he was part of a conspiracy that resulted in one of the largest credit union collapses in history,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“Eddy Zai’s sentence and restitution amount reflect his extensive involvement in bribing loan officials, submitting false documentation and obtaining millions of dollars in loans for numerous non-operational businesses managed by him,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue to seek justice for victims of the SPCFCU collapse and any other financial fraud scheme where trust and faith have been unwittingly placed.”
Darryl Williams, Special Agent in Charge of the Internal Revenue Service-Criminal Investigations’ Cincinnati Office, said: “Honest and law abiding citizens are fed up with those who use deceit and fraud to line their pockets with other people’s money. Let these convictions stand as a warning to those who victimize the public that whether you are the main perpetrator of a fraud, or merely assist in its facilitation, the law will hold all guilty parties accountable."
Zai, 44, of Pepper Pike, pleaded guilty last year to one count of conspiracy to commit bank fraud and bank bribery, two counts of bank fraud, three counts of money laundering, one count of bribery and two counts of making false statements of financial institutions.
U.S. District Judge John Adams sentenced Zai to 87 months in prison, followed by five years of supervised release, and ordered him to pay more than $23 million in restitution.
Zai conspired with others, including Anthony Raguz, the former Chief Operating Officer of the St. Paul Croatian Federal Credit Union (SPCFCU), to submit false loan documents to the credit union, defraud the credit union of approximately $16.7 million, and pay bribes and kickbacks to Raguz for using his position at the credit union to approve numerous loans to Zai and the entities and nominee companies he controlled, according to court documents.
The conduct took place from December 2003 through March 2010, according to court documents.
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.At the time, Zai owned, operated and controlled The Cleveland Group, LLC (aka the Cleveland Group of Companies) and its many related entities, which included: Cleveland Flooring & Designs, Ltd.; Alpina, Inc.; Cleveland Development Group, LLC; The Cleveland Group, Environmental, LLC; Cleveland Real Estate Group, Inc.; The Cleveland Group Real Estate Division; The Cleveland Group, Excavating Division; Cleveland Management Group, Inc.; The Cleveland Group, Construction Division; The Cleveland Group, Consulting Division; The Cleveland Group, Ltd.; 417, Ltd.; 417 Limited; and Sutton Park, Ltd.
Certain of these entities were created primarily to operate as a “safe haven” for credit union proceeds, while others performed little or no legitimate business despite having loan proceeds intented for Zai’s “business” ventures, according to court documents.Zai engaged in a scheme to defraud the credit union by, among other things, submitting loan documents for and receiving loan proceeds on behalf of companies that ceased operations. He continued to seek and obtain loan proceeds in the name of non-operating entities even after he directed that no loan payments be made to the credit union. This scheme to defraud the credit union resulted in an approximately $13.7 million loss, according to court documents.
Zai submitted numerous false loan documents to the credit union between March 2008 and July 2009 in order to influence the credit union’s decision to approve loans to the companies he controlled.
Zai gave Raguz numerous cash payments, usually in the form of $100 bills concealed in envelopes and hand-delivered to Raguz at the credit union’s offices, and totaling more than approximately $5,000. The payments were made to both induce Raguz to approve additional fraudulent loan applications and to reward Raguz for having previously approved false loan applications, according to court documents.This case is being prosecuted by Assistant U.S. Attorney Bridget M. Brennan following an investigation by the Cleveland office of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.
Four Canton Men Sentenced to Prison for Drug Trafficking Involving Rated R Street GangRead the Press Release
Four Canton men were sentenced to prison this week for their involvement in a drug-trafficking ring in which cocaine, heroin and crack cocaine was brought into Stark County and distributed by members of the Rated R street gang, 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’ Cleveland office.
Jasmine Watkins, 29, was sentenced to 20 years in prison.
Virgil Hill, 26, was sentenced to 20 years in prison.
Cordrick Owens, 32, was sentenced to 12 years, 7 months in prison.
Jerry Gordon, 25, was sentenced to 10 years in prison.
All four previously pleaded guilty to conspiracy to distribute controlled substances (cocaine, crack cocaine and heroin). Watkins also pleaded guilty to being a felon in possession of a firearm, for which he was sentenced to 10 years in prison, to be served concurrently to his 20-year sentence.
“This group is well known to law enforcement for causing serious trouble throughout Canton,” Dettelbach said. “These prison sentences will eliminate some of the worst of the worst offenders in Stark County.”
Anthony said: “These four sentences wrap up another phase of law enforcements efforts to dismantle drug trafficking groups in our area. The FBI will continue to work side by side with our law enforcement partners to make Canton neighborhoods a safer place to live.”
Watkins provided Gordon with shipments of drugs at a home in Columbus and then Gordon and others moved the drugs to a stash house he controlled on Sol Beck NE in Canton. Once there, Gordon distributed the drugs to local dealers, according to court documents.
Hill was identified in court documents as the leader of "Rated R." He and others made large purchases of cocaine from Gordon, according to court documents.
Seventeen people have now been sentenced to prison in this case. They are:
Travis Grant: 10 years, 1 month.
Timothy Bertram: 4 years, 9 months.
Oscar Todd: 10 years, 5 months.
Edward Turpin IV: 10 years.
Perez Antwan Williams: 5 years.
Demond Hill: 10 years, 2 months.
Bennie Woodson: 6 years, 10 months.
Ronald D. Hill: 6 years, 10 months.
John L. Hill: 3 years, 1 month.
Barry Giamourdes: 4 years, 3 months.
Brandon Jones: 10 years.
Lavanya Mayle: 5 years.
Brian Brown: 6 years.
Five others were indicted on federal charges last month for their role in the conspiracy.
This case was being prosecuted by Assistant U.S. Attorneys Linda H. Barr and Vasile C. Katsaros following an investigation by the FBI’s Safe Streets Task Force, which is comprised of the FBI, Canton Police Department, Alliance Police Department, Ohio Adult Parole Authority, Stark County Sheriff’s Office, Massillon Police Department and Perry Police Department.Foun Men Sentenced to Prison for Roles in Chop-Shop RingRead the Press Release
Four men were sentenced to prison for their roles in a conspiracy that trafficked in stolen vehicles, backhoes, steel, scrap metal and other objects through a chop shop and a scrap-metal yard in Cleveland, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Lindsey Blackmon, 48, of Cleveland, was sentenced to nearly five years (57 months) in prison by U.S. District Judge John Adams.
Nayyir Mahdi, aka “Willie Jones,” 42, of Shaker Heights, was sentenced to four years in prison and ordered to pay $22,184 in restitution.
Curtis Wilder, 43, of Bedford Heights, was sentenced to three years in prison and ordered to pay $346,845 in restitution.
Gilbert Evans, 48, of Cleveland, was sentenced to 16 months in prison.
Mark Brown, 46, of Cleveland, was sentenced to one day in jail followed by eight months of home confinement.
Davies Pierce, of Cleveland, is scheduled to be sentenced next month.
“These defendants ended up with semi-trucks or pickups that were stolen from parking lots and other places,” Dettelbach said. “This conspiracy included thefts in Warrensville Heights, Willoughby, Mentor, Euclid, Elyria and a slew of other locations.”
“Stealing and selling stolen vehicles and cargo comes with a price of incarceration,” Anthony said. “The FBI and our Organized Crime Task Force partners will continue our efforts to detect and dismantle these illegal enterprises which negatively impact our economy and our citizens.”
Mahdi operated Express Metals on East 152nd Street and, before that, at 14915 Woodworth Ave., both in Cleveland, and was in the business of selling scrapped metal. Blackmon obtained a location at 19210 Miles Road, Warrensville Heights, Ohio, to be used as a chop shop. Pierce owned and operated Duffy’s Towing at 7810 Colfax Road and salvaged autos for scrap metal, according to court documents.
Wilder, John Jones and others broke into and stole motor vehicles throughout Northeast Ohio. Between June 2011 and March 2012, they brought the stolen vehicles to Brown, Pierce and Mahdi. The Vehicle Identification Numbers (VIN) were then removed from the vehicles, parts were stripped from the vehicle and sold, and the rest of the vehicles were crushed and sold for scrap, according to court documents.
Some of the co-conspirators brought stolen vehicles to Brown, who stripped the autos of parts, including rims and catalytic converters, before towing the vehicles to Pierce’s shop on Colfax Road, where they were destroyed and scrapped, according to court documents.Blackmon and others would spot and steal loads of cargo after truck drivers parked their rigs. The tractor, trailer and loads of cargo were then brought to Express Metals, operated by Mahdi, and to Pierce’s scrap yard, where the stolen cargo was broken down, according to court documents.
On March 4, 2012, Blackmon, Evans, Brown and others possessed a shipment of steel coils worth about $120,000 that were stolen from a Ramada Inn in Elyria. The steel was being shipped to Michigan from Twinsburg, Ohio, according to court documents.
One month earlier, Blackmon, Pierce, Brown and others, possessed steel beams worth $18,700, a 2007 Kenworth semi-truck and a 2005 Eagle flatbed which had been stolen in the vicinity of Streetsboro, Ohio, while being used in interstate commerce between Twinsburg, Ohio and Virginia, according to court documents.
Nine others were indicted on related charges in state court.
This case is being handled by Assistant United States Attorney Robert E. Bulford following an investigation by the FBI’s Organized Crime Task Force, which includes the FBI, Ohio State Highway Patrol, U.S. Customs and Border Protection and the Cleveland Division of Police.
Two Men Indicted for Having 55 Fake Credit Cards That They Used to Purchase More Than $5,000 in MerchandiseRead the Press Release
A grand jury returned a four-count indictment charging two men with crimes related to their possession of approximately 55 fraudulently obtained credit cards that they used to purchase more than $5,000 worth of merchandise from various merchants at Beachwood Place and Golden Gate, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“These men are accused of going on a shopping spree with fake credit cards,” Dettelbach said. “We all pay the price when people engage in theft like this, and this office will work with our partners to stamp out credit-card fraud.”
James Gibson of Orlando, Florida, and Lansford Beuns of Newport News, Virginia, were indicted on counts of (1) conspiracy to commit access device fraud; (2) use of unauthorized access devices; (3) possession of 15 or more counterfeit access devices and (4) possession of device-making equipment.
The indictment charges that in December 2012, Gibson and Beuns possessed approximately 55 counterfeit access devices (credit cards) upon which fraudulently acquired account information had been re-encoded and embossed using an encoder and an embosser in their possession.
The indictment further charges that Gibson and Beuns used the counterfeit access devices and unauthorized access devices to purchase thousands of dollars of merchandise from various merchants in Beachwood and Mayfield Heights, Ohio.
Among the purchases identified in the indictment, which all took place on Dec. 1 or Dec. 2, 2012, are:
* Abercrombie and Fitch, 26300 Cedar Road, $258.
* The Buckle, 26300 Cedar Road, $336.
* Saks Fifth Avenue, 26300 Cedar Road, $1,729.
* True Religion Jeans, 26300 Cedar Road, $623.
* Best Buy, 1417 Golden Gate Boulevard, $3,027.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorney Margaret A. Sweeney, following 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.
Steven Hinz Sentenced to Nine Years in Prison, Ordered to Pay More Than $500,000Read the Press Release
Steven R. Hinz was sentenced to nine years in prison and ordered to pay more than $500,000 in restitution for his role in leading separate tax and mortgage fraud conspiracies, said Assistant Attorney General of the Justice Department’s Tax Division Kathryn Keneally, United States Attorney for the Northern District of Ohio Steven M. Dettelbach, and Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, Darryl K. Williams.
U.S. District Judge Patricia Gaughan ordered Hinz to pay $458,302 in restitution to Wells Fargo Bank, $50,069 to the IRS and $36,211 to the Department of Housing and Urban Development.
Hinz pleaded guilty last year to one count of conspiracy to defraud the United States, one count of making a false 2008 income tax return, fifteen counts of aiding and assisting the preparation of false income tax returns, and one count of conspiracy to commit bank fraud involving a mortgage fraud scheme.
The other three defendants charged in case – Heather L. English, Patricia A. Polk, and William E. Phillips, III – have also pleaded guilty.
All four defendants were indicted in December 2011 on the tax conspiracy and various false return charges. Hinz was arrested in Miami, Florida, in January 2012 and Polk was arrested in Sarasota, Florida in February 2012. Phillips was arrested in Los Angeles in June 2012, after being deported from the Philippines upon request of the U.S. government.
According to court documents, Hinz promoted a scheme to defraud the United States by filing false federal income tax returns claiming large tax refunds using the so-called “OID process.” The OID process involved the preparation of fictitious IRS Forms 1099-OID, Original Issue Discount, falsely reporting that financial institutions, creditors, and other entities had withheld large amounts of federal income tax on behalf of the defendants and other taxpayers, with respect to non-existent income. Hinz and English recruited potential clients by promoting the OID scheme to investors in and employees of Hinz’s real estate business in Youngstown, Ohio, as well as to individuals they knew from organizations known at different times as NeoThink, NeoTech, and the Society of Secrets. English prepared or directed the preparation of the 1099-OID forms and prepared and electronically filed the tax returns. Based on these fictitious withholdings, at least 17 false tax returns for the year 2008 were filed with the IRS, claiming false refunds totaling over $3,000,000. Under the scheme, taxpayers recruited by Hinz were to pay 20 percent of their refunds to Hinz and English, split equally between them, sometimes referred to as commissions and sometimes labeled as “donations.”
According to court documents, from approximately December 2006 through May 2009, Hinz conducted his real estate business in part through a scheme to defraud two federally-insured banks, Wells Fargo Bank and Huntington National Bank, that provided mortgage loans to the investors. The scheme was carried out through the filing of false mechanic’s liens for work not actually done and the providing of undisclosed down payment assistance to the investors. The scheme was designed to induce the banks to make mortgage loans based on false representations concerning the true price and value of the properties, the sources of down payments, and the disposition of loan proceeds. Polk began conspiring with Hinz to conduct the scheme April 2008.
The case is being handled by Assistant U.S. Attorneys John M. Siegel and Henry F. DeBaggis and Tax Division Trial Attorney Robert C. Kennedy, following investigation by the Internal Revenue Service, Criminal Investigation, the Office of Investigations of the Department of Housing and Urban Development Office of Inspector General, and the Federal Bureau of Investigation.
Parma Man Accused of Having More Than $100,000 Worth of Counterfeit Clothing, Boots and ShoesRead the Press Release
A federal grand jury in Cleveland returned an indictment charging Walid Hanna, age 27, of Parma, Ohio, with trafficking in counterfeit merchandise, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about June 16, 2011, Hanna intentionally trafficked and attempted to traffic in goods, specifically counterfeit apparel, which, if genuine, would be valued at approximately $107,808, including: Gucci sweatshirts (9), belts (41) and shoes (30 pair); Ralph Lauren Polo shirts (193), fleece jackets (36) and caps (186); UGG boots (101 pair); New Era sports caps (656); and North Face jackets (43), 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. The indictment alleges that the use of such counterfeit and spurious marks was likely to cause confusion, mistake or to deceive.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.
This case is being prosecuted by Assistant U.S. Attorney Robert W. Kern of 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.
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 Charged with Six Counts of Wire FraudRead the Press Release
A federal grand jury in Cleveland returned an indictment charging Diana Geoffrion, age 55, of Cleveland, with six counts of wire fraud related to a $100,000 scheme involving a property in Willowick, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Geoffrion was employed by First American Exchange Company, LLC, in its Cleveland office from 2001 through January 2011. In February 2009, she executed a land contract on property at 722 East 305 Street, Willowick, Ohio, 44095, according to the indictment.
She then tried to fraudulently pay off the mortgage and note on the property with First American funds in late 2010, and embezzle and divert additional First American funds for her own benefit, according to the indictment.
Each of the six counts corresponds with a separate transaction, which totaled approximately $101,982.
The indictment results from an investigation conducted by the Federal Bureau of Investigation. The case was presented for indictment by Assistant United States Attorney James V. Moroney.
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.Cleveland Heights Indicted on Federal Drug ChargesRead the Press Release
A federal grand jury sitting in Cleveland, returned a one-count indictment charging Donte Booker, age 45, of Cleveland Heights, Ohio, with a violation of federal narcotics law, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges Booker with the attempted possession with the intent to distribute over five kilograms of cocaine.
If convicted, Booker’s sentence will be determined by the court after review of factors unique to this case, including Booker’s prior criminal record, his role in the offense and the unique characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Edward F. Feran following an investigation by the Northern Ohio Law Enforcement Task Force (NOLETF) and the Cleveland Police Department.
The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Homeland Security Investigations, U.S. Coast Guard Investigative Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Strongsville Police Department, Westlake Police Department and Shaker Heights Police Department.
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.
Illinois Man Sentenced to Two Years for Role in Credit Union CollapseRead the Press Release
An Illinois man who played a role in one of the largest credit union collapses in American history was sentenced to two years in prison, United States Attorney Steven M. Dettelbach said.
Bujar Sejdic, 33, Ottawa, Illinois, was also ordered to repay $1.6 million in restitution by U.S. District Judge Christopher Boyko.
Sejdic pleaded guilty last year to financial institution fraud, giving gifts for procuring loans and three counts of money laundering related to his activities at St. Paul Croatian Federal Credit Union, located in Eastlake, Ohio.
The credit union closed in 2010, costing the National Credit Union Share Insurance Fund more than $170 million.
Between January 2004 through March 2010, Sejdic obtained 25 loans totalling more than $1.6 million from SPCFCU. These loans were made fraudulently, under false and fraudulent pretenses, and many were made after Sejdic had already defaulted on previous loans, according to court documents.
He obtained these loans with the assistance of the credit union’s then-chief operating officer, Anthony Raguz. In return, Sejdic gave Raguz $40,000 in cash and one check, according to court documents.
Raguz is currently serving a 14-year prison sentence for his crimes related to the credit union’s collapse.
In 2009 and 2010, Sejdic wired $240,000 from his SPCFCU account to an account in Belgrade, Serbia, according to court documents.As a result of Sejdic’s actions, SPCFCU and the National Credit Union Association lost more than $1.6 million, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Bridget M. Brennan following an investigation by the Cleveland Offices of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, with the assistance of the Eastlake Police Department.
Former Postal Employee Pleaded Guilty to $265,000 FraudRead the Press Release
A former employee of the United States Postal Service pleaded guilty to fraudulently collecting approximately $265,000 in benefits by exaggerating her medical condition and other acts, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Robert LaPina, Special Agent in Charge for the U.S. Postal Service Office of Inspector General.
Melissa Scherz Leist, age 37, of Coshocton, and formerly of Sandusky, pleaded guilty to one count of fraud in the obtaining of Federal Employee’s Compensation Act (FECA) benefits.
Leist is scheduled to be sentenced on May 20. She resigned from the Postal Service prior to her plea.
Leist fraudulently exaggerated her medical condition and limitations, fraudulently rejected limited duty job offers by the United States Postal Service, falsely represented her physical abilities and range of activities and deliberately concealed activities which would have made her ineligible for disability benefits, all for the purpose of fraudulently obtaining FECA benefits in excess of $265,000, according to court documents.
“The majority of postal employees who collect compensation benefits have legitimate claims due to on-the-job injuries and are truly unable to perform any postal jobs,” LaPina said. “A small percentage, however, abuse the system and cost the Postal Service millions of dollars in fraudulent claims. This guilty plea should put those employees who choose to abuse the system on notice that USPS OIG agents will vigorously investigate worker compensation fraud and will seek criminal prosecution and termination of their job and benefits when appropriate.”
The case is being prosecuted by Assistant United States Attorney Thomas A. Karol following an investigation by the United States Postal Service, Office of Inspector General.
Sixteen People Indicted for Their Role in Trafficking Ring That Brought Drugs to ClevelandRead the Press Release
Sixteen people were indicted on charges including drug trafficking, possessing illegal firearms and money laundering for their roles in a group that is accused of bringing cocaine, heroin and marijuana from Chicago and selling it in Cleveland, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Robert L. Corso, Special Agent in Charge of the Drug Enforcement Administration.
The ring operated between March and September 2012, according to the indictment. The defendants are from Cleveland unless otherwise noted.
The indictment charges Richard Price, Jr., aka "Richie," age 23; Alexander Abreu, aka "Cuba," age 42; Geraldo Maldonado, aka "Lalo," age 37; Richard Maldonado, age 27; Joshua Johnson, age 21; Robert Hoover, age 27; Gordon Egan, age 19; Reginald Hart, age 34, of Bedford; Pedro Gonzalez, age 29; John Childrey, age 22, of Brook Park; John Hoch, age 19, of Middleburg Heights; Michael Young, age 24; Patrick Corrigan, aka "Patrick Marflak," of Lakewood; and Cory Box, age 20, of Westlake, with conspiracy to distribute and possess with intent to distribute at cocaine, heroin, and marijuana.
Richard Price, Jr., is also charged with distributing cocaine and heroin, possessing with intent to distribute heroin, possessing a firearm in furtherance of a drug trafficking offense, being a felon in possession of firearms, maintaining a premises for drug trafficking, and money laundering. Joshua Johnson is also charged with distributing heroin. John Hoch and Alexander Abreu additionally are charged with money laundering.
Finally, Breanna Johnson, age 19, of Cleveland, Ohio, is charged with distributing heroin while Richard Price, Sr., age 49, is charged with being a felon in possession of a firearm.
“This groups is accused of bringing a variety of drugs, including heroin, cocaine and marijuana, from Chicago to the west side of Cleveland,” Dettelbach said. “Today’s arrests should send a message to those who seek to profit from the drug trade.”
Corso said: “This drug-trafficking organization, led by Richard Price, was unique in that it supplied the west side of Cleveland with such a vast array of illegal drugs. These arrests effectively cut off a pipeline that fed the streets of Cleveland. The success of this sophisticated investigation is directly related to the strong cooperation and support between DEA and our law-enforcement partners.”
The indictment describes a conspiracy in which Price, Jr., obtained cocaine, heroin, and marijuana from Abreu and other suppliers and then distributed the drugs to numerous dealers in the Cleveland area, while being assisted by several of the co-conspirators.
This case is being prosecuted by Assistant United States Attorneys Matthew W. Shepherd and Henry F. DeBaggis. This case was investigated through the combined efforts of the Drug Enforcement Administration (DEA) and Cuyahoga County Sheriff’s Office.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a
fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.Two Conneaut Residents Sentenced for Trafficking in Counterfeit MerchandiseRead the Press Release
U.S. District Judge James S. Gwin sentenced Trang Doan Hoang, 37, and Quoc-Thang Ngo Mai, 39, both of Conneaut, Ohio, in connection with their recent conviction for trafficking in counterfeit merchandise, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Hoang was sentenced to four months in the custody of the Bureau of Prisons, to be followed by two years of supervised release, the first four months of which must be served in home confinement with electronic monitoring.
Mai was sentenced to two years probation, the first six months of which must be served in home confinement with electronic monitoring. The counterfeit merchandise will be forfeited to the United States and destroyed.
On September 13, 2012, a federal grand jury in Cleveland returned an indictment charging Hoang and Mai with one count each of trafficking in counterfeit merchandise. Hoang and Mai each entered guilty pleas to the charge on November 6, 2012.
The indictment charged that between on or about December 21, 2011, and on or about February 14, 2012, Hoang and Mai intentionally trafficked and attempted to traffic in approximately 146 designer handbags, 47 designer wallets and 16 counterfeit Rolex watches 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. Also, the indictment charged that the use of such counterfeit and spurious marks was likely to cause confusion, mistake or to deceive, according to the indictment.
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.
The U.S. Attorney's Office Filed 176 Firearms Indictments Last YearRead the Press Release
The United States Attorney’s Office for the Northern District of Ohio filed 176 illegal firearms indictments last year as part of Project Safe Neighborhood (PSN), U.S. Attorney Steven M. Dettelbach announced.
“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.”
“Ensuring public safety and pursuing individuals who illegally use and possess firearms in furtherance of their activities is a top priority of the ATF,” said ATF Special Agent in Charge Robin Shoemaker, Columbus Field Division. “We will continue to perfect criminal cases against these types of individuals and hold them accountable for their actions.”
Broken down by geography in the district, the most indictments filed came out of the Cleveland office, with 86. That was followed by the Toledo office (31), Akron office (30) and Youngstown office (29).
There were 146 defendants sentenced last year for firearms crimes and the average sentence was more than six years in prison (73.9 months).
Details of selected cases:
U.S. v. Stafford
Akeem Stafford, 25, of Elyria, was sentenced last year to more than 20 years in prison for being a felon in possession of a firearm and ammunition. Stafford fired several rounds from a .45-caliber pistol into a crowd of people outside Uncle Vic’s nightclub in Elyria.U.S. v. Katrenick
David Katrenick was sentenced to more than nine years in prison in June after pleading guilty to two counts of being a felon in possession of a firearm. Katrenick owned and operated Lazy Dave’s Tattoo Shop on Lorain Road in North Olmsted. He possessed three rifles, two shotguns and ammunition, despite previous convictions for rape, aggravated assault, burglary and other crimes.U.S. v. Atwal
Amarjit S. Atwal, 65, of Maple Heights, was indicted last month on charges of using a false identity to purchase a firearm. Atwal used the identity of another person to purchase a Glock 9 mm and Smith and Wesson .357-caliber revolver and intentionally failed to disclose his true name and identity when attempting to purchase firearms at the Berea Gun Show.U.S. v. Gilbert and Moses
Tyrone Gilbert and Rodney Moses, both of Youngstown, were charged with being felons in possession of firearms and ammunition in June as part of a broader investigation into a criminal enterprise that dealt heroin in the Youngstown area.U.S. v. Taylor
Isiah Taylor III, of Youngstown, was sentenced to seven years in prison last year after being convicted of brandishing a firearm during a crime. That sentence is being served concurrent to a sentence of more than 10 years related to more than 40 armed robberies he committed in Akron, Warren, Boardman, Alliance, Youngstown and other locations.Project Safe Neighborhoods (PSN) is a nationwide commitment to reduce gun and gang crime in America by networking existing local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. Since its inception in 2001, approximately $2 billion has been committed to this initiative. This funding is being used to hire new federal and state prosecutors, support investigators, provide training, distribute gun lock safety kits, deter juvenile gun crime, and develop and promote community outreach efforts as well as to support other gun and gang violence reduction strategies.
As a point of reference, PSN prosecution statistics for calendar year 2002 through 2011 are as follows:
2002: 117 indictments
2003: 155 indictments
2004: 184 indictments
2005: 220 indictments
2006: 187 indictments
2007: 191 indictments
2008: 157 indictments
2009: 156 indictments
2010: 166 indictments
2011: 218 indictments
2012: 176 indictments
Tax Charges Filed Against Women from Toledo and TexasRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced an indictment was filed against Beverly Burns, age 26, of Arlington, Texas, Lajuana Batey, age 35, of Toledo, Ohio, Latoya Batey, age 24, of Arlington, Texas, and Shereece Coffey, age 30, of Toledo, Ohio.
The indictment charges defendants with conspiracy and making false, fictitious, or fraudulent claims. The defendants devised a scheme to enrich themselves through the submission of false, fictitious and fraudulent tax returns filed with the Internal Revenue Service during the years 2009 to 2011. The defendants, and others, shared the proceeds obtained from the false return scheme, by converting the refund checks to their own use.
If convicted, the defendants’ sentence 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 agency in this case is the Internal Revenue Service, Toledo, Ohio. The case is being handled by Assistant United States Attorney Joseph R. Wilson.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.