Northern District of Ohio
Press releases recorded for this federal judicial district.
Brecksville Man Ordered to Forfeit $1 Million, Sentenced to Nine Months Home DetentionRead the Press Release
A Brecksville man was sentenced today to nine months of home detention with electronic monitoring, ordered to perform 40 hours of community service by United States District Court Judge Dan Aaron Polster, who also entered the final order of forfeiture in the amount of $1 million arising from his conviction on one count of conspiracy to hire undocumented workers, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Ravindra Telluri, age 42, of Brecksville, Ohio, was also sentenced to five years of supervised release.
Telluri previously pleaded guilty before United States District Court Judge Dan Aaron Polster on October 17, 2012, at which time Telluri paid $1 million to the United States to satisfy the forfeiture based upon the proceeds he received as a result of his criminal activity.
Telluri is a lawful permanent resident of the United States and a citizen of India, according to court records. He also withdrew his application to obtain United States citizenship by naturalization and agreed to no longer work in any employment position involving the recruiting or hiring of undocumented workers.
“We will continue to prosecute those employers who would hire undocumented workers,” Dettelbach said. “While the H-1b temporary worker visa program can be a valuable tool in a company’s hiring practices, abuse of the system will not be tolerated.”
Between January 1, 2008 and October 14, 2010, Telluri was the sole owner and operator of two information technology firms, Hytech Consulting, Inc., and InterOne Corp., both companies located in Seven Hills, Ohio. The firms hired and then placed computer programmer analysts at client firms to serve as computer consultants. The two companies were subsequently sold and Telluri is no longer an owner or operator, according to court documents.
During the time period charged in the criminal information, Telluri engaged in a conspiracy with two unindicted coconspirators in India to recruit and hire citizens of India to come to the United States as temporary specialty occupation workers in the area of information technology as computer programmer analysts, according to the information.
Federal laws permit companies to recruit and hire qualified temporary specialty occupation workers utilizing H-1b visas issued by the United States Citizenship and Immigration Services (USCIS). As part of the process, there must exist an actual position for the person to be hired and a Labor Condition Application from the Department of Labor certifying that hiring a temporary alien worker at the location of the employment will not adversely affect the existing workforce in that geographic area of the country.
It was part of the conspiracy that Telluri was aware at the time of hiring undocumented workers that false documentation purportedly from client companies previously had been submitted as part of the process of submitting petitions for issuance of H-1b visas, and that as a result, he hired workers who were not lawfully authorized to be so employed, according to the information.“Our goal is to protect opportunities for the nations’s legal workers and level the playing field for those businesses that play by the rules,” said William Hayes, Acting Special Agent in Charge for Homeland Security Investigations Detroit, which covers Michigan and Ohio. “Employers who willfully violate our nation’s hiring laws gain an unfair economic advantage over their law-abiding competitors. They will be held accountable for their actions as evident in the significant financial penalties as a result of today’s sentencing.”
“Today’s sentencing should serve as a stern warning to those who intentionally submit false labor certification applications to the U.S. Department of Labor. The defendant in this case devised an international scheme to fraudulently obtain H-1b visas for foreign workers. The Office of Inspector General will continue to work with our law enforcement partners to combat these types of crimes,” said James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor Office of Inspector General, Officer of Labor Racketeering and Fraud Investigations.
“U.S. Citizenship and Immigration Services (USCIS) immigration officers serve on the front lines protecting our Nations’s security and, as this case so aptly demonstrates, are actively involved in the detection of fraud and abuse,” said Mark Hansen, USCIS District Director in Cleveland. “We remain committed to protecting the immigration system from those who would seek to exploit it and, together with our federal, state, and local law enforcement partners, will strive to maintain the integrity of our national immigration system.”
The case was prosecuted by Assistant U.S. Attorneys Phillip J. Tripi, Gregory C. Sasse, and James L. Morford, following an extensive joint criminal investigation by Homeland Security Investigations, Department of Labor Office of Inspector General, and the United States Citizenship and Immigration Services.
Vermilion Woman Sentenced to Five Months in Prison for Tax ViolationsRead the Press Release
Terry E. Branco was sentenced today to five months imprisonment for corruptly endeavoring to obstruct and impede the due administration of the federal tax laws, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The sentence was imposed in Cleveland by United States District Judge James S. Gwin, who also ordered Branco to pay restitution of unpaid taxes totaling $47,475 for the years 2004 through 2007.
According to court records, Branco is 65 years old and resides in Vermilion, Ohio.
Branco previously pleaded guilty to an Information pursuant to a written plea agreement which described her course of conduct over several years, including the following. For tax years 2004 through 2007, Branco filed frivolous and false U.S. individual tax returns in which she stated that her total adjusted gross income for each year was zero dollars ($0). Her actual total adjusted gross income was $109,403, $87,440, $93,277 and $113,845 for the 2004, 2005, 2006 and 2007 tax years, respectively.
Branco also signed a form in 2006 on which she falsely claimed she was not a resident of the United States. In 2008, following an IRS audit and assessment of taxes owed, Branco sent a purported “commercial affidavit” to the IRS claiming that the IRS was not an agency of the United States, was “perpetuating a fraud,” and was “not licensed to do business.” She also stated that failure to rebut the affidavit would result in the “filing of a commercial lien, involuntary bankruptcy and/or tort claim.” Branco then filed a Notice of Default and Affidavit of Notice with a county recorder in Utah, reflecting an intent to encumber real estate owned by an IRS employee whose name was on notices sent to her by the IRS, according to the plea agreement.
The case was handled by Tax Division Trial Attorney Andrew P. Young and Assistant U.S. Attorney John M. Siegel, following investigation by the Internal Revenue Service - Criminal Investigation, Akron, Ohio, and the Treasury Inspector General for Tax Administration, Cleveland, Ohio.
Northwood Man Found Guilty of Copyright Violation Related to Video GamesRead the Press Release
A jury returned a guilty verdict against Jeffrey J. Reichert, age 27, of Northwood, Ohio, in connection with a oneicount indictment that charged him with violating the Digital Millennium Copyright Act, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charged that the defendant knowingly manufactured, imported, offered to the public, or otherwise trafficked in technology, products, services, devices, components or parts thereof, which were primarily designed to circumvent technological measures designed to effectively control access to a work copyrighted under Title 17 of the United States Code, for purposes of commercial advantage or private financial gain. Specifically, the defendant was charged with trafficking in modification chips (also known as “Mod Chips”) which are primarily designed to circumvent the technological measures designed into video game consoles (such as the Nintendo Wii) to prevent access to copyrighted works.
The defendant will be sentenced by U.S. District Judge Donald C. Nugent on March 26, 2013, after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Robert W. Kern and Chelsea Rice of the Cleveland U.S. Attorney’s Office, following an investigation by the Cleveland Office of the Department of Homeland Security, Immigration and Customs Enforcement (ICE).
Man Indicted for Illegal ReentryRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a one-count indictment charging Audiel Sanchez-Colin, 37, with illegally reentering the United States following his deportation.
The indictment alleges that Sanchez-Colin was previously removed or deported from the United States to Mexico on February 22, 2008, and October 7, 2009.
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. 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.
Cleveland Heights Man Indicted on Four Counts of Bank RobberyRead the Press Release
A federal grand jury has returned an indictment charging Brandon Laster, age 30, of Cleveland Heights, Ohio, with four counts of bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on October 30, November 18, November 26, and December 11, 2012, Laster did by force, violence, and intimidation, take from the person, presence, and custody of bank tellers the sum of approximately $8,000 which was under the care, custody, and possession of four banks located in University Heights, Cleveland Heights, Independence, and Bedford Heights, the deposits of which were then insured by the Federal Deposit Insurance Corporation.
The indictment was presented to the grand jury by Assistant United States Attorney Michelle M. Baeppler after an investigation by agents of the Federal Bureau of Investigation and local law enforcement officers.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to the case, including the defendant’s prior criminal 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.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Youngstown Man Indicted on Seven Counts of Health Care FraudRead the Press Release
A federal indictment was filed charging Rolando Sepulveda with seven counts of health care fraud in connection with the operation of his ambulette company, Med Transportation, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Ohio Attorney General Mike DeWine.
Sepulveda, age 51, operated his business out of the Youngstown area and is currently believed to be residing in Puerto Rico. He defrauded the state of approximately $406,000 from August 2008 to August 2011, according to the indictment.
"This money should have gone to help those who were sick and truly needed transportation,” Dettelbach said.
“That is a huge amount of money that could have been spent on patients who legitimately needed help,” said Ohio Attorney General Mike DeWine. “Instead, this man took that money for himself."
Ambulette services contract with the Ohio Medicaid program to transport patients in vehicles known as ambulettes. An ambulette is a specially equipped van designed for wheelchair passengers. Medicaid pays ambulette operators for driving Medicaid patients to and from Medicaid-covered appointments, so long as: (1) the patient rides in a wheelchair; (2) a medical doctor certifies the need for the wheelchair and ambulette; and (3) the ambulette itself otherwise meets safety specifications.
The defendant is charged with scheming to defraud Medicaid of approximately $406,000.00 by charging Medicaid for rides of patients who did not use or need wheelchairs and for billing Medicaid for ambulette attendants, when no such attendants were used by Med Transportation.
If convicted, the defendant’s sentence will be determined by the court after review of the federal sentencing guidelines and factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations.
The indictment is the result of an investigation by Ohio Attorney General Mike DeWine’s Medicaid Fraud Control Unit and the Office of the Inspector General, United States Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Chelsea S. Rice and Special Assistant U.S. Attorney Constance Nearhood, an Assistant Attorney General for the State of Ohio.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Toledo Men Accused of Defrauding Insurance Companies Through Fake Auto AccidentsRead the Press Release
An indictment was filed charging Michael N. Smith, age 57, and Darryl Richardson, age 57, both of Toledo, with conspiracy to commit mail fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The defendants are accused of devising a scheme to enrich themselves through the submission of false and fraudulent auto insurance claims to various insurers, causing total losses of more than $135,000. The scheme involved recruiting numerous other co-conspirators to fake auto accidents and then make false claims to insurance companies, according to the indictment.
The conspiracy took place between December 2006 and March 2009 and involved more than 20 claims submitted to companies including GEICO, Safe Auto Insurance Company, Permanent Generl, n/k/a The General, and Progressive Casualty Insurance Company, according to the indictment.
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 agencies in this case are the United States Postal Service, Cleveland, Ohio, United States Secret Service, Toledo, Ohio, and the National Insurance Crime Bureau, Chardon, 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. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Five Canton Men Indicted for Cocaine ConspiracyRead the Press Release
Five Canton men were indicted on a charge of conspiracy to distribute cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation’s Cleveland office.
“This is an example of federal and local law enforcement working together to make sophisticated cases that take out groups that bring down the quality of life for everyone,” Dettelbach said. “We believe this investigation will eliminate some of the worst of the worst offenders in Canton and Stark County.”
“In the past 15 months, collaborative law enforcement efforts have resulted in the indictment of 26 individuals, including nine who were taken into custody this morning, responsible for bringing cocaine and violence to the Canton area,” Anthony said. “The FBI and our local partners will continue efforts to protect the citizens of Canton by dismantling dangerous, illegal drug organizations."
Indicted are: Jamail Cortez Mitchell, 22; Chad Irvin Tucker, 24; Cruz M. Brown, 23; Jermaine E. Gaitor, 28, and Kevin Slater, 57. All were arrested this morning.
Related state charges were filed against three other people as well.
Mitchell, Tucker, Brown, Gaitor and Slater are accused of conspiring to distribute more than five kilograms of cocaine and more than 280 grams of crack cocaine in Canton between June 2010 and October 2011, according to the indictment.
The men purchased crack and powder cocaine from previously indicted conspirators and resold the drugs in and around Canton, according to the indictment.
This case is a supplemental indictment to the one filed on May 22, 2011, which charged 17 people with taking part in a conspiracy that brought heroin and cocaine from Columbus, Ohio, to Stark County. All 17 people have been found guilty and many have been sentenced to terms between five and 10 years in prison. Jasmine Watkins, one of the leaders the conspiracy, pleaded guilty and is facing a mandatory minimum sentence of 20 years in prison.
These cases are being prosecuted by Assistant United States Attorney Linda H. Barr following an investigation by the FBI’s Safe Streets Task Force, which is comprised of the Canton Police Department, Alliance Police Department, Ohio Adult Parole Authority, Stark County Sheriff’s Office, Massillon Police Department and Perry Police Department.
An indictment is merely an accusation. All defendants are presumed innocent of the charges until proven guilty beyond a reasonable doubt in court.
Toledo Man Faces Charges for Having 18 Firearms, Body Armor and 40,000 Rounds of Ammunition Despite Manslaughter ConvictionRead the Press Release
A criminal indictment was unsealed today charging Toledo resident Richard Schmidt with a variety of crimes related to his possession of 18 firearms, body armor and more than 40,000 rounds of ammunition despite a previous conviction for the crime of manslaughter, 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.
Schmidt, 47, was arrested in December following searches of his home and business. He was convicted of manslaughter in 1990 in the Lucas County Court of Common Pleas. Schmidt was forbidden from possessing firearms, ammunition or body armor as a result of his conviction.
“It is deeply troubling that law enforcement found this man, with a prior homicide conviction, in possession of an arsenal,” Dettelbach said. “We owe the FBI and our other law enforcement partners our thanks that they caught this man, with 18 firearms -- some of them assault weapons – high-capacity magazines, more than 40,000 rounds of ammunition, and a bulletproof vest stored in a locked room in a mall, before anyone was hurt.”
Anthony said: “Richard Schmidt is not only accused trafficking in counterfeit goods but also is accused of being a felon in possession of a significant quantity of firearms and ammunition. We are pleased that the FBI, U.S. Attorney's Office, and our partners were able to take Richard Schmidt off the street.”
Count 1 charges that Schmidt, on Dec. 21, 2012, possessed approximately 300 rounds of ammunition and four firearms: two Ruger P95 9 mm pistols, a Sig Sauer P250 9 mm pistol and a Taurus PT145 pistol.
Count 2 charges that Schmidt, on Dec. 28, 2012, possessed approximately 40,188 rounds of ammunition and 18 firearms: a Stag Arms AR-15 rifle, an Armalite AR-10 rifle, a Mossberg 500 12-gauge shotgun, a Remington 870 Express 12-gauge shotgun, a Winchester M94 30/30 rifle, a Winchester M190 .22-caliber rifle, a Remington M700 rifle, a Mossberg M535 12-gauge shotgun, a Russian American Armory SAIGA 12-gauge shotgun, a Federal Arms Corporation FA 91 .308-caliber rifle, an Eagle Arms 5.56-caliber rifle, a Rock River Arms AR-15 rifle, a Ruger Mark II pistol and a Sturm-Ruger .375 magnum pistol.
Count 3 charges that Schmidt, on Dec. 28, 2012, possessed body armor.
Count 4 charges that between Sept. 30, 2011 and Dec. 21, 2012, Schmidt trafficked in counterfeit goods, specifically goods with counterfeit logos and brand-name markings of the National Football League, Nike, Reebok and Louis Vuitton.
These items were found following searches of Schmidt’s home on Marlow Road in Toledo, the store he operates, Spindletop Sports Zone, in Bowling Green, Ohio and trailers in the parking lot of the shopping center that includes Spindeltop Sports Zone. Investigators also recovered seven high-capacity magazines during the search, according to court records.
The United States Attorney’s Office for the Northern District of Ohio filed 176 indictments for violations of federal firearms laws, with the average sentence being more than six years in prison.
This case is being prosecuted by Assistant U.S. Attorneys Duncan T. Brown and Linda H. Barr following an investigation by the FBI, with assistance from Immigration and Customs Enforcement – Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Border Patrol, the Ohio State Highway Patrol, the Toledo Police Department, the Bowling Green Police Department and the Wood County Sheriff’s Office.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Man Charged with Being A Felon in Possession of AmmunitionRead the Press Release
A criminal indictment was filed in U.S. District Court today charging a Cleveland man with being a felon in possession of ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Raymone “Ramone” Clements, 42, 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.
“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.
Anyone with information about Clements’ whereabouts is asked to call 1-800-ATF-GUNS or the Cleveland Heights Police Department 1-216-321-1234.
Youngstown Man Charged with Bank RobberyRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a one-count information was filed charging Richard D. Gooding, age 38, of Youngstown, Ohio, with bank robbery.
On November 13, 2012, Gooding entered the Bangor Savings Bank, 1048 Brighton Avenue, Portland, Maine, and robbed a teller of approximately $1,543. He was subsequently arrested in Youngstown, Ohio.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation was conducted by the Portland, Maine Police Department, the Federal Bureau of Investigation and the Mahoning Valley Violent Crimes Task Force. The case is being prosecuted by Assistant United States Attorney David M. Toepfer.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Port Authority Board Member Sentenced to 57 Months in PrisonRead the Press Release
Robert M. Peto, a former member of the Cleveland-Cuyahoga County Port Authority, was sentenced to more than four years in prison today after previously pleading guilty to violating the Hobbs Act, law enforcement officials said today.
Peto, 58, lives in Gates Mills, Ohio. He served as a member of the Port Authority Board between December 2004 through in or around August 2012, according to court documents.
Peto obtained property not due to him or his Port Authority office including free and discounted home improvements and materials, entertainment, and a financial benefit related to a vehicle acquisition, according to court documents.
The property and objects were provided by Michael Forlani and/or Doan Pyramid LLC and Neteam, AVI, companies in which Forlani had an ownership interest, according to court documents.
“This sentence shows the high cost to those who would violate the public’s trust in exchange for personal gain,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “Corruption – in this case taking bribes and utilizing his position as a board member for the Port Authority – will not be tolerated.”
The conduct took place between 2004 and Oct. 2, 2007, according to court documents.
The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon and Nancy L. Kelley following an investigation by the Federal Bureau of Investigation, the Department of Labor and Internal Revenue Service – Criminal Investigation.
Thirteen People Indicted for Roles in Ring That Brought Heroin to Ashtabula, Led to Overdose DeathRead the Press Release
A federal grand jury returned a 42-count indictment against 13 people who are accused of participating in a large-scale heroin trafficking ring in the Ashtabula areas and resulted in the overdose death of an Ashtabula resident last year.
The unsealing of the indictment was announced today by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Robert L. Corso, Special Agent in Charge of the U.S. Drug Enforcement Administration, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation, and William Johnson, Ashtabula County Sheriff.
The indicted individuals are:
DEFENDANTAGE
ADDRESS
Rayshawn Reed, aka “Ray,” aka “Racey”
37
Ashtabula, Ohio
30
Ashtabula, Ohio
Jamarce Miller, aka “Jamie”
36
Ashtabula, Ohio
Amanda Loving
30
Geneva, Ohio
Isaac Hawkins
24
Unknown
Louis Snyder
48
Ashtabula, Ohio
James Robinson, aka “Marell Holley”
37
Ashtabula, Ohio
Tricia Lewis
35
Ashtabula, Ohio
Joey Schmeisser
30
Unknown
Kevin Fridrich
28
Geneva, Ohio
Reginald Bryant, aka “Reg”
39
Euclid, Ohio
Shaunci Osborne
20
Ashtabula, Ohio
Laketha Harris, aka “Jay”
35
Ashtabula, Ohio
Count 1 of the indictment charges the defendants with conspiracy to distribute more than a kilogram of heroin, a Schedule I controlled substance.Count 2 of the indictment charges Sherord Miller and Shaunci Osborne with conspiracy to engage in money laundering, based on their use of a bank safe deposit box to store and conceal profits from the sale of heroin.
Count 3 of the indictment charges Rayshawn Reed with knowingly and intentionally possessing with intent to distribute approximately 171 grams of heroin.
Count 4 of the indictment charges Reginald Bryant with felon-in-possession of a firearm.
Counts 5-42 of the indictment charge each defendant with using a communications facility (a telephone) to facilitate a drug trafficking offense.
“This group is accused of bringing piles of heroin into Ashtabula, which directly resulted in the death of a young woman,” Dettelbach said.
“Heroin abuse in Ohio and across the country is on the rise, and it is directly responsible for hundreds of overdose deaths every year,” Corso said. “This indictment illustrates that the DEA and our law enforcement partners will continue to aggressively target those individuals that choose to sell heroin in our communities, with total disregard for human life.”
Anthony added: “In the past 2 ½ years, collaborative law enforcement initiatives have resulted in the indictment of more than 40 individuals responsible for dangerous illegal drugs in the Ashtabula area, 13 of those being responsible for heroin distribution and taken into custody today. The FBI, through partnerships with state, local and federal agencies will continue efforts to dismantle drug trafficking organizations that bring danger to our residents.”
Law enforcement personnel seized heroin, firearms and more than $320,000 in U.S. currency during the year-long investigation. The indictment also seeks the forfeiture of five vehicles used as part of the conspiracy: a 2004 Chevrolet Suburban, a 2004 Cadillac CTS, a 2002 Cadillac Escalade, a 2004 BMW 745Li and a 1976 Oldsmobile Cutlass.
The indictment alleges that from March 2012 to August 15, 2012, defendant Rayshawn Reed arranged for multiple kilogram quantities of heroin to be brought into Northeast Ohio from the Chicago area.
The heroin was then distributed to co-conspirators in Ashtabula, including Sherord Miller and Jamarce Miller. Sherord Miller and Jamarce Miller then resold the heroin to other co-conspirators, including defendants Amanda Loving, Isaac Hawkins, Louis Snyder, James Robinson, Tricia Lewis, Joey Schmeisser, and Kevin Fridrich, and to heroin users. Defendants Shaunci Osborne and Laketha Harris helped Sherord Miller sell and distribute heroin, and that Reginald Bryant furnished heroin to the co-conspirators during periods when shortages occurred, according to the indictment.The indictment further alleges that heroin from the conspiracy which had been distributed by Jamarce Miller resulted in the fatal heroin overdose of an Ashtabula-area resident on or about July 7, 2012.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, their role in the offenses, and the 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.
This case is being prosecuted by Assistant United States Attorneys Joseph P. Schmitz and Vasile C. Katsaros following a one-year investigation. It was conducted by agents of the U.S. Drug Enforcement Administration and the Federal Bureau of Investigation, with assistance from the Ashtabula County Sheriff’s Office, the Ashtabula Police Department, the Trumbull/Ashtabula Group Task Force (TAG), the Ohio Bureau of Criminal Identification and Investigation (BCI), the Cuyahoga County Sheriff’s Office and the Ohio State Highway Patrol.
An indictment is only is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four More Sentenced in Case of Filing Fraudulent Tax Returns in the Name of Deceased PeopleRead the Press Release
Four more people were recently sentenced for their roles in a $1.7 million scheme to defraud the United States by obtaining false and fraudulent U.S. Treasury tax refund checks using the identities of deceased people, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Darryl Williams, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation’s Cincinnati office.
Elian Zayed (AKA Nasser Zayed and Nick Zayed), 45, of Westlake was sentenced to 2 ½ years in prison and ordered to pay $177,744 in restitution after pleading guilty to conspiracy and mail fraud.
Samer Sammor, 40, of Broadview Heights, was sentenced to 18 months in prison and ordered to pay $25,429 in restitution after pleading guilty to making a false claim against the U.S.
Eric J. Howard, 42, of Tampa, Florida, was sentenced to more than five years in prison and ordered to pay $177,744 in restitution after pleading guilty to conspiracy to commit mail fraud, mail fraud and aggravated identity theft.
Lamia Suleiman, 44, of Lutz, Florida, was sentenced to three years of probation and ordered to pay $177,744 in restitution after pleading guilty to misprision of a felony.
“The theft of anyone’s identity is a serious offense, but stealing the identities of the recently departed to defraud all the other taxpayers is particularly egregious,” said Steven M. Dettelbach, the U.S. Attorney for the Northern District of Ohio. “These sentences should cause anyone who would engage in this conduct to reconsider.”
Five other people were sentenced to prison last year for their roles in a related scheme.
From 2009 to at least August 2011Zayed, Suleiman, Howard, Samor and other co-conspirators defrauded the United States by filing false and fraudulent tax returns, many in the names of recently deceased taxpayers, according to court documents.
The co-conspirators directed the refunds to controlled locations in Florida. The U.S. Treasury checks generated by the false tax returns were sent by U.S. mail to co-conspirators located in Ohio. The Ohio co-conspirators then sold and distributed those Treasury checks for negotiation at various businesses and banking institutions, according to court documents.
The IRS estimated that the scheme involved at least $1.7 million in fraudulently obtained tax returns.
The case was prosecuted by Assistant United States Attorneys Margaret Sweeney and Gary D. Arbeznik following an investigation was by the the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, and the United States Postal Service.Ferris Kleem Sentenced to Three Years in Prison, Fined $250,000 for Bribery ConvictionRead the Press Release
Contractor Ferris Kleem was sentenced to three years in prison, fined $250,000 and ordered to pay $24,000 in restitution to Cuyahoga County after previously pleading guilty to one count of bribery concerning programs receiving federal funds, law enforcement officials said.
Kleem, 54, of Berea, engaged in a conspiracy between 2006 through July 28, 2008 in which Kleem provided things of value to Cuyahoga County Commissioner Jimmy Dimora, County Auditor Frank Russo and county employee J. Kevin Kelley in return for those men performing acts and promising to perform official acts to benefit Kleem and his interests, according to court documents.
In 2006, Kleem asked Dimora and Russo to assist him in obtaining a county grant to build a pedestrian bridge at Coe Lake in Berea. County commissioners eventually voted to award a $150,000 grant to the city of Berea for the project, according to court documents.
In 2008, Kleem asked Dimora and Russo to assist his brother with a smoking violation at his restaurant. Dimora made phone calls inquiring about the violation, according to court documents.
In 2008, Kleem helped arrange a trip to Las Vegas for Dimora, Russo, Kelley and others. Kleem gave Dimora and Russo $6,000 in cash each -- $1,000 to cover the cost of airfare and $5,000 for gambling. The money was enough to ensure that Dimora and Russo gambled enough to be “comped” suites at the Mirage, as Kleem had arranged, according to court documents.
While in Las Vegas, Kleem gave Dimora approximately $3,500 in gaming chips. He also hired a prostitute, at Dimora’s request, for $1,000 and escorted the prostitute to Dimora’s suite, according to court documents.
While in Las Vegas, Kleem and Dimora discussed details of bids for work on the county’s Juvenile Justice Center project, work for which Kleem was bidding. They also discussed having a specific inspector assigned to the Snow Road resurfacing project. The inspector was eventually assigned to the job, as a result of Kelley’s efforts and Dimora’s influence, according to court documents.
The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon, Ann C. Rowland and Nancy L. Kelley following an investigation by the FBI and IRS – Criminal Investigation.
Toledo Man Named in 15-Count Indictment Charging Possession of More Than 150 Pounds of MarijuanaRead the Press Release
A 15-count indictment was filed charging Stanley L. Haythorne, age 37, of Toledo, Ohio, with conspiracy to possess with intent to distribute marijuana, structuring financial transactions to avoid reporting requirements, and possession with intent to distribute marijuana, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Haythorne is accused of conspiring with others to distribute more than 1,000 kilograms of marijuana between 2004 and the present, according to the indictment.
On June 18, 2010, Haythorne possessed more than 150 pounds (71 kilograms) of marijuana, according to the indictment.
In a five-month period in 2008, Haythorne engaged in a series of financial transactions involving approximately $250,000 that were designed to avoid financial reporting requirements (structuring), according to the indictment.
If convicted, the defendants’ 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 case was accepted and investigated as an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program divides the country into 13 regions and is designed to insure that the most sophisticated investigative and prosecutive resources are directed against large scale organized drug trafficking ventures.
The indictment culminates a three-year investigation by the Federal Bureau of Investigation, the Internal Revenue Service, and the Drug Enforcement Administration. The case is being handled by Assistant United States Attorney Thomas P. Weldon.
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.
Rossford Man Charged with Making ThreatsRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that an indictment was filed against Justin Eckenrode, age 27, of Rossford, Ohio. The indictment charges Eckenrode with transmitting a threatening communication in interstate commerce.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Bureau of Alcohol, Tobacco, Firearms and Explosives, Toledo, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.Maumee Man Charged with Conspiracy, Firearms Charges in 10-count IndictmentRead the Press Release
A 10-count indictment was filed charging Barry P. DeRan, age 54, of Maumee, Ohio, with conspiracy, making false statements in the acquisition of firearms, and unlawfully dealing in firearms, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“The laws are very clear about who is forbidden from carrying firearms, and this defendant fell into that category,” Dettelbach said. “We will aggressively pursue those who would violate our nation’s firearms laws.”
DeRan is accused of conspiring with others to obtain firearms from Internet firearms dealers. He falsely identified the actual buyer of the firearms when completing the required firearms transfer records, ATF Form 4473, according to the indictment.
This was done to conceal the fact that DeRan was the actual buyer of the firerarms when he was prohibited from possessing, using, carrying or obtaining any deadly weapons by a Lucas County Common Pleas Court civil protection order, according to the indictment.
Between August 2010 and May 2011, DeRan purchased 11 firearms from an Arizona-based dealer and had them shipped to a licensed Ohio firearms dealer to complete the transfer when a person known to the Grand Jury was falsely identified as the actual buyer when completing Form 4473, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, Toledo, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Lorain Man Charged with Bank Fraud and Money LaunderingRead the Press Release
A six-count indictment was filed charging Clarence Cornwell, age 51, of Lorain, Ohio, with bank fraud and money laundering, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Cornwell is accused of defrauding Charter One by deposting a check with a materially altered payee's name into a business account Cornwell controlled on July 28, 2010, according to the indictment. Between July 30 and Aug. 4, 2010, Cornwell then made five withdrawals from the account totalling $39,900, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Secret Service, Toledo, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An indictment is only a charge and is not evidence of guilt. 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 Sentenced to Three Years in Prison for Crimes Related to Credit-Union CollapseRead the Press Release
Zrino Jukic was sentenced to 37 months in prison and ordered to pay nearly $1.7 million in restitution for crimes related to the collapse of the St. Paul Croatian Federal Credit Union.
Jukic, 42, of Cleveland, previously pleaded guilty to one count of bank fraud and one count of money laundering.
Jukic was a co-owner of the Zlato Group, along with Anthony Raguz, who also served as the credit union’s chief operating officer. Jukic engaged in a scheme to defraud the credit union by providing false information in connection with approximately 11 loan applications. The proceeds of these fraudulent loans were used to allow Jukic and Raguz -- through their company, the Zlato Group -- to invest in certain business ventures, according to court documents.
Jukic also engaged in a money laundering transaction by transferring fraudulently obtained funds from a Zlato Group bank account to his own bank account, according to court documents.
St. Paul Croatian Federal Credit Union (SPCFCU) was placed into conservatorship in April 2010, when it served 5,400 members and was believed to have assets of more than $238 million. The National Credit Union Association discontinued operation of SPCFCU when it was determined to be insolvent, making it the largest credit-union failure in American history.
To date, 24 people have been indicted for criminal activity related to the credit union. Raguz was sentenced to 14 years in prison and ordered to repay $72.5 million last year. Koljo Nikolovski was sentenced to 18 years in prison for his role in the credit-union collapse.
This case was prosecuted by Assistant U.S. Attorneys Bridget M. Brennan and Jack Sammon following an investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations.
Medina Man Arrested on Child Pornograghy, Others ChargesRead the Press Release
Richard J. Miezin, 47, of Medina, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Miezin was arrested this afternoon.
The indictment charges that from on or about April 27, 2010, through on or about February 25, 2011, Miezin knowingly distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct.
Miezin is further charged with knowingly and willfully making false material statements and representations to the Federal Bureau of Investigation during their investigation.
The indictment is the result of was a joint effort of the Medina County Sheriff’s Office and the Akron Office of the FBI’s Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney Carol M. Skutnik.
Targeting child predators is a priority of this newly established task force with the Medina County Sheriff and FBI. This task force will utilize all available investigative, technical and community resources to protect the children in our communities.
Over the last several years, the FBI, state and local law enforcement, and the public have developed an increased awareness of the prevalence of child pornography and sexual exploitation of children. More incidents of online child pornography and sexual exploitation are being identified for investigation than ever before. As the power and popularity of the Internet continues to expand, the number of child pornography and sexual exploitation cases opened will likely continue to grow, as will the resources needed to address this crime problem. The task forces located throughout the northern district of Ohio, comprised of federal, state and local law enforcement are a key tool in this effort.
If convicted, the sentence in this case will be determined by the court after consideration of the federal sentencing guidelines, which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
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.
Financial Planner Sentenced on Tax ConvictionsRead the Press Release
A financial planner from Richfield was sentenced to eight months of home confinement after previously pleading guilty to two counts of willful failure to file tax returns, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Darryl Williams, Special Agent in Charge of the Internal Revenue Service – Criminal Investigations office in Cincinnati.
Jon D. Zapisek, 41, worked as a financial planner for John Hancock Financial between 2006 and 2010. During that time, he failed to report more than $600,000 in taxable income, which resulted in more than $100,000 in unpaid taxes, according to court documents.
Zapisek was also ordered to pay restitution.
This case is being prosecuted by Assistant U.S. Attorney Justin J. Roberts following an investigation by the Internal Revenue Service – Criminal Investigations.
Five California Residents Indicted for Conspiracy to Bring Cocaine to Cleveland AreaRead the Press Release
Five California residents were charged in a three-count federal indictment filed in Cleveland related to a conspiracy to bring multiple kilograms of cocaine to the Cleveland area, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
In Count 1, Jesse Owen Ray, age 28, of Los Angeles; Peter Howard, age 53, of Compton, California; Tonya Johnson, age 42, of Los Angeles; Harold Pugh, age 66, of Los Angeles; and Will McCraw, age 67, of Compton, California, were charged with conspiracy to possess with the intent to distribute approximately four kilograms of cocaine.
In Count 2, Johnson was charged with possession with the intent to distribute two kilograms of cocaine.
In Count 3, Ray and Howard were charged with possession with the intent to distribute two kilograms of cocaine.
This indictment is based on the investigation by the Federal Bureau of Investigation, Immigration and Customs Enforcement of Homeland Security, High Intensity Drug Trafficking Area Task Force, Cuyahoga County Sheriff’s Office, and Lakewood Police Department into drug trafficking activities occurring in the Greater Cleveland area and elsewhere.
This case is being prosecuted by Assistant United States Attorneys Teresa L. Dirksen and Matthew Shepherd.
If convicted, the defendants' sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal records, if any, their role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Cleveland Man Faces Carjacking, Firearms ChargesRead the Press Release
A grand jury returned a two-count indictment charging Rayvon McGhee, age 19, of Cleveland, with carjacking and using a firearm during and in relation to a crime of violence, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on or about October 18, 2012, McGhee knowingly carried a firearm with the intent to cause death and serious bodily harm to take a motor vehicle by force, violence, and intimidation. The charge stems from an armed carjacking that occurred in the Cleveland area.
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 indictment results from an investigation conducted by the Cleveland Cuyahoga Violent Crimes Task Force, in coordination with the Federal Bureau of Investigation, Cleveland Division of Police and the Cuyahoga County Sheriff’s Office.
The Cleveland Cuyahoga Violent Crimes Task Force targets violent crime through a partnership of the United States Attorney’s Office, Cuyahoga County Prosecutor’s Office, Federal Bureau of Investigation, Cuyahoga County Sheriff’s Department, Cleveland Police Department, Adult Parole Authority, and other state and local agencies.
Cuyahoga County Prosecutor Timothy McGinty’s Office will assist in the prosecution of this case in the United States District Court.
The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall and Special Assistant U.S. Attorney Gregory Mussman.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Child Pornography Charges Filed Against Massillon, North Canton MenRead the Press Release
Criminal charges of receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct were filed against two men in unrelated cases, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Charged were Tyler W. Cole, 22, of Massillon, Ohio and David Mariner, 55, of North Canton, Ohio.
Cole's indictment charges that from on or about April 23, 2012, through on or about May 25, 2012, he knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On June 13, 2012, images of child pornography were found on his Dell XPS210 desktop computer and a thumb drive, according to the indictment.
Mariner's indictment charges that from on or about March 13, 2012, through on or about May 16, 2012, he knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On May 16, 2012, images of child pornography were found on his Toshiba laptop computer, according to the indictment.
If convicted, the sentences in these cases will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
These cases are being prosecuted by Assistant United States Attorney Carol M. Skutnik. The cases were investigated by the Canton Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two More Sentenced in Cuyahoga County Corruption CaseRead the Press Release
A former Cuyahoga County employee and another man were sentenced to prison after previously pleading guilty to racketeering, law enforcement officials said.
Former Deputy Cuyahoga County Auditor Samir Mohammad was sentenced to nearly four years in prison. He pleaded guilty last year to racketeering, conspiracy to commit bribery concerning programs receiving federal funds, Hobbs Act conspiracy, witness tampering and making false statements.
Hamdi “Sam” Qasem was sentenced to four months detention to be followed by four months home detention.
Both men admitted last year to trading things of value with public officials in exchange for favorable personnel decisions, according to court records.
Former Cuyahoga County Auditor Frank Russo and others did cause the county to hire designees of Mohammad and Qasem, including members of the same social organization to which they belonged, in return for Russo and others receiving things of value, according to court records.
Mohammad also used an intermediary to offer and give things of value to former Cuyahoga County Commissioner Jimmy Dimora in return for favorable personnel decisions, according to court documents.
Mohammad, along with Russo, Kevin Payne and J. Kevin Kelley, also used their influence to secure the participation of Broma Information Technology, an IT consulting firm, in a large county project, in return for cash kickbacks. Mohammad received a portion of those cash payments, which he, in turn, delivered to Russo, according to court documents.
The case was prosecuted by Assistant United States Attorneys Henry F. DeBaggis and Justin J. Roberts following an investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation.
EMH Regional Medical Center and North Ohio Heart Center to Pay $4.4 Million to Resolve False Claims Act AllegationsRead the Press Release
EMH Regional Medical Center (EMH) has agreed to pay the United States $3,863,857 and North Ohio Heart Center Inc. (NOHC) has agreed to pay the United States $541,870 to settle allegations that they submitted false claims to Medicare, the Justice Department announced today.
EMH is a non-profit community hospital system located in Lorain County, Ohio. During the relevant time period, NOHC was an independent physician group located in Lorain County that practiced at EMH. Today’s settlement resolves allegations that between 2001 and 2006 EMH and NOHC performed unnecessary cardiac procedures on Medicare patients. Specifically, the United States alleged that EMH and NOHC performed angioplasty and stent placement procedures on patients who had heart disease but whose blood vessels were not sufficiently occluded to require the particular procedures at issue.
“Billing Medicare for cardiac procedures that are not necessary or appropriate contributes to the soaring costs of health care and puts patients at risk. Today’s settlement evidences the Department of Justice’s efforts both to protect public funds and safeguard Medicare beneficiaries,” said Stuart F. Delery, Principal Deputy Assistant Attorney General of the Justice Department’s Civil Division.
“Most doctors act responsibly. These few didn’t,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “Patient health and taxpayer dollars have to come before greed.”
This matter was initiated by the filing of a whistleblower complaint under the False Claims Act (FCA). Under the FCA, private citizens can bring suit for false claims on behalf of the United States and receive a share of the recovery obtained by the government. The whistleblower in this matter, Kenny Loughner, was the former manager of EMH’s catheterization and electrophysiology laboratory. As a result of today’s settlement, Mr. Loughner will receive $660,859 of the United States’ recovery.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $10.1 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $13.8 billion.
The investigation was jointly handled by the U.S. Attorney’s Office for the Northern District of Ohio, the Justice Department’s Civil Division, the Office of the Inspector General of the Department of Health and Human Services and Federal Bureau of Investigation. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Thecase is captioned United States ex rel. Loughner v. EMH Regional Medical Center, et al., Case No. 1:06-cv-2441 (N.D. Oh.)
Trio from Northeast Ohio Indicted for $1.4 Million Fraud ConspiracyRead the Press Release
Three people from the Greater Cleveland area were indicted for their roles in a $1.4 million fraud conspiracy involving property in North Carolina, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office and Darryl Williams, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati Field Office.
Camille M. Harris, 42, of Cleveland, Kenneth T. Embry, 56, of Lyndhurst, and Deon D. Levy, 43, of Bedford, are all charged with three counts each: conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering.
All three were arrested this morning.
All three were also affiliated with a general contracting company known as Ameribuild Management Company (AMC) in Cleveland: Harris was president, Embry was chief financial officer and Levy was director of operations from May 2007 through February 2008, according to the indictment.
Together, the trio conspired to enrich themselves by making false representations on a mortgage-loan application and other documents related to the North Carolina property and using fictitious invoices as a means to extract money, according to the indictment.
Around November 2007, Levy had been working with a realtor to find a property around Charlotte, N.C. Embry sent Levy bank statements for Harris’ personal account that falsely stated her bi-weekly salary payments were $31,260. Embry also emailed Harris’ personal tax returns and AMC’s corporate tax returns, both of which contained misrepresentations about the financial condition of Harris and AMC, according to the indictment.
On Dec. 21, 2007, Embry sent an invoice to a North Carolina escrow agent for $340,000 from an Ohio business called Wolfco, Inc. The invoice requested payment for work done on the North Carolina property, when in fact no work had been done, according to the indictment.
Embry again sent false bank statements and balance sheets that misstated the financial conditions of Harris and AMC, according to the indictment.
On Dec. 28, 2007, Harris executed and submitted a loan application for the North Carolina property to Fairway Independence Mortgage Corp. that contained several false statements, including claims that she had a monthly income of $62,520, she had more than $1.2 million in two bank accounts and that she owned property on East 141st Street in Cleveland with a market value of $80,000, according to the indictment.
That day, Harris and Embry caused the sale and closing on the North Carolina property with a disbursement check from Fairway of $1,393,873. That included $340,000 that was distributed to Wolfco, Inc. Five days later, Embry opened a bank account in the name of Wolfco, Inc. d/b/a Kenneth Embry, according to the indictment.
On Jan. 7, 2008, Harris and Embry caused the escrow agent to transfer $340,000 to Wolfco’s account. Later that day, Embry drafted a check in the amount of $181,000 made out to “cash.” He then transferred $150,000 from his Wolfco account to the AMC account controlled by Harris, according to the indictment.
Two days after that, Harris drafted a check in the amount of $80,000 from the AMC account payable to herself and deposited it into her personal account.
Harris and Embry caused a loss of approximately $599,388 to Fairway and Amtrust Bank, as the purchaser of the North Carolina property’s mortgage from Fairway, according to the indictment.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton following an investigation by Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations.
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.
Federal Firearms Charges Filed Against Four Mahoning Valley MenRead the Press Release
A grand jury returned indictments charging four Mahoning Valley residents with violating federal firearms and ammunition statutes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“We will continue to go after those who are forbidden by law from carrying firearms or ammunition, but do so anyway,” Dettelbach said.
Those charged in the unrelated indictments are:
Kevin L. Washington, age 26, of Boardman, Ohio, who was charged with being a felon in possession of a firearm and ammunition and possession with the intent to distribute heroin.
The indictment charges that on or about September 21, 2012, Washington possessed a Ceska Zbrojovka,model 75 SP-01, 9mm pistol, serial number A733206 and ammunition, despite having previously been convicted of aggravated robbery and felonious assault in the Common Pleas Court of Franklin County, Ohio.
The indictment further charges that on or about September 21, 2012, Washington possessed with the intent to distribute approximately 26 grams of heroin.
Antonio S. Smith, age 30, of Warren, Ohio, was charged with being a felon in possession of ammunition.
The indictment charges that on or about November 4, 2012, Smith possessed six rounds of .45 caliber CCI ammunition, despite previous convictions for failure to comply with order or signal of police officer, burglary and aggravated assault, in the Common Pleas Court of Trumbull County, Ohio.Anthony J. Schaffer, age 24, of Canfield, Ohio, was charged with being a felon in possession of a firearm and ammunition.
Count 1 of the indictment charges that on or about June 26, 2012, Schaffer possessed one round of Hornady .38 caliber ammunition; five rounds of Remington .38 caliber ammunition; 16 rounds of Remington .380 caliber ammunition; two rounds of Winchester .380 caliber ammunition; 17 rounds of Wolf 9mm ammunition and 30 rounds of CCI .22 caliber ammunition. The indictment further charges in Count 2 that on or about December 11, 2012, Schaffer possessed a Smith & Wesson, model SW40V, .40 caliber pistol, with an obliterated serial number, and 14 rounds of .40 caliber ammunition, after he had been previously convicted of burglary in the Common Pleas Court of Trumbull County, Ohio, and complicity to robbery in the Common Pleas Court of Mahoning County, Ohio.
James L. Mosley, age 32, of Youngstown, Ohio, was charged with being a felon in possession of a firearm and ammunition.
The indictment charges that on or about October 23, 2012, Mosley possessed a Harrington & Richardson, model 999, .22 caliber revolver, and ammunition, after he had been previously convicted of trafficking in crack cocaine and possession of cocaine in the Common Pleas Court of Mahoning County, Ohio.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
These cases are being prosecuted by Assistant United States Attorney David M. Toepfer following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives - Youngstown Field Office, the Warren Police Department, the Mahoning Valley Law Enforcement Task Force, the Boardman Police Department and the Ohio Adult Parole Authority.
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 27 Years in Prison for Producing Child PornographyRead the Press Release
A Canton man was sentenced to more than 27 years in prison for producing child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Anthony Ortiz, age 24, of Canton, Ohio, was sentenced to 327 months in prison by U.S. District Judge Christopher Boyko.
From on or about December 1, 2010, through on or about October 1, 2011, Ortiz knowingly permitted a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct and such visual depiction was produced using materials that had been mailed, shipped, and transported in interstate or foreign commerce, according to court documents.
This case was prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Department of Homeland Security, Homeland Security Investigations
Avon Lake Man Indicted for Paying Bribes to Get $11 Million as Part of Credit-Union CollapseRead the Press Release
An Avon Lake man was charged today with 28 criminal counts for illegally receiving more than $11 million from the St. Paul Croatian Federal Credit Union, actions which played a role in the credit union’s collapse, law enforcement officials said.
Gezim Selgjekaj, 41, was charged with one count of conspiracy, six counts of bribery, six counts of money laundering and 15 counts of financial institution fraud.
Also charged were Arthur Hoxha, 40, of Rocky River (one count of financial institution fraud) and Judmir Capoj, 36, of North Olmsted (two counts of submitting false statements to a financial institution).
St. Paul Croatian Federal Credit Union (SPCFCU) was placed into conservatorship in April 2010, when it served 5,400 members and was believed to have assets of more than $238 million. The National Credit Union Association discontinued operation of SPCFCU when it was determined to be insolvent, making it the largest credit-union failure in American history.
“This case is yet another sad chapter in the story of the demise of an important community institution,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “The credit union’s leader and his associates enriched themselves on the backs of thousands of honest and hard-working members.”
“This defendant created several fictitious businesses as safe havens for the illegal siphoning of fraudulently obtained loan proceeds,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue to seek justice for the shareholders that placed their trust and faith in the management of this lending institution.”
Selgjekaj owned, operated and controlled, in whole or in part, several business entities, which were created either primarily as “safe havens” for credit union proceeds or that performed little or no legitimate business despite receiving loan proceeds intended for Selgjekaj’s “business” ventures, according to the indictment.
Those business included: Jimmy’s Trucking; Top Quality Produce; RGV Enterprises; Alba Logistics; GPA Transport; J&F Properties; Lake County Farmers Market; Albkos Properties LLC; G&M Truck Repairs; Produce, Inc.; Fresh Fruit; Fresh Start Co.; East Side Farmers Market; RGA Enterprises, LLC and Ristorante Luciano, according to the indictment.
From 2003 through April 2010, Selgjekaj conspired with Anthony Raguz, who at the times was chief operating officer at SPCFCU, and others, to defraud the credit union, according to the indictment.
Selgjekaj submitted false and fraudulent loan applications to Raguz, including submitting loan requests in nominee’s names when Selgjekaj’s aggregate loan balances reached a level that could have drawn attention from auditors or members of the credit union’s board, according to the indictment.
From March 2003 through July 2004, for example, Selgjekaj received approximately $5 million in fraudulent loan proceeds from SPCFCU. Selgjekaj received another $3.6 million between 2004 and 2008, despite the fact that Selgjekaj was in federal prison for unrelated conduct. Even after defaulting on the $8.6 million in loans, Selgjekaj received an additional $2.9 million in loans from SPCFCU between 2008 and 2010, according to the indictment.
To influence and reward Raquz for providing him with the fraudulently obtained money from SPCFCU, Selgjekaj gave Raguz $40,000 in cash and five checks totaling $66,000, according to the indictment.
Overall, Selgjekaj’s conduct resulted in a loss to the credit union of more than $11 million, according to the indictment.To date, 24 people have been indicted for criminal activity related to the credit union. Raguz was sentenced to 14 years in prison and ordered to repay $72.5 million last year. Koljo Nikolovski was sentenced to 18 years in prison for his role in the credit-union collapse.
This case is being handled by Assistant United States Attorneys Bridget M. Brennan and Justin E. Herdman following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
An indictment is merely an accusation. All defendants are presumed innocent of the charges until proven guilty beyond a reasonable doubt in court.