Northern District of Ohio

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 (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.)

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.

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.

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

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.