Northern District of Ohio
Press releases recorded for this federal judicial district.
Sandusky Doctor Sentenced to Prison for Illegally Dispensing Drugs to PatientsRead the Press Release
TOLEDO – Gregory J. Gerber, age 58, of Port Clinton, Ohio, was sentenced to prison by U.S. District Judge James R. Knepp, II after earlier pleading guilty to illegally dispensing narcotics to patients. Gerber was sentenced to 42 months imprisonment to be followed by one year of home confinement for the first of 3 years of supervised release. Gerber was also ordered to pay a $100 special assessment and restitution in the amount of $861,892.13.
According to testimony and court records, from January 2010 to August 2018, Gerber repeatedly prescribed controlled substances outside the usual course of professional practice and not for a legitimate medical purpose, including powerful painkillers such as fentanyl, oxycodone, oxymorphone and other drugs. Gerber distributed narcotics that were not medically necessary by writing controlled substance prescriptions without first performing adequate patient physical examinations. He also used faulty diagnoses to prescribe excessive doses of controlled substances for long periods of time without evidence that the controlled substances were helping the patients, all while ignoring signs of addiction and drug abuse among those patients.
Gerber, who operated Gregory J. Gerber, M.D. LLC on Hayes Avenue in Sandusky, also profited significantly from prescribing Subsys, a particular branded formulation of fentanyl manufactured by Insys Therapeutics, Inc. Between 2013 and 2016, Gerber received $175,000 from Insys for promoting the drug through Insys’s speaker’s bureau program. During that same time, Gerber wrote 835 prescriptions for Subsys.
“When he became a physician, Dr. Gerber vowed to care for his patients—to heal, not harm,” said U.S. Attorney Becky Lutzko. “But Dr. Gerber violated both federal law and his oath when he illegally distributed addictive painkillers to his patients. The Northern District of Ohio, like many districts throughout the country, continues to combat a staggering opioid crisis. My Office and our law enforcement partners are dedicated to investigating and prosecuting physicians who abuse their positions of trust by unlawfully prescribing medically unnecessary opioid prescriptions and endanger their patients’ lives.”
“Abusing one’s position as a trusted healthcare provider by deliberately harming others for personal gain is disgraceful,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “Gregory Gerber exhibited a blatant disregard for his patients’ wellbeing and instead, purposefully sought ways to capitalize on—and at times, contribute to—a worsening condition.
The FBI will continue to work with our federal, state and local partners to find and investigate practitioners in the medical community who target and victimize vulnerable populations.”
“Physicians are expected to be trusted individuals within the communities they serve. The defendant’s actions placed patients at risk of harm and further burdened the federal health care system through his illegal conduct,” said Mario M. Pinto of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Chicago Region. “HHS-OIG will continue to work with our law enforcement partners to ensure that those who endanger beneficiaries of our federal health care programs are brought to justice.”
“This disgraced doctor violated the most important oath—to do no harm,” said Ohio Attorney General Dave Yost. “No punishment can reverse the damage of the opioid crisis, but we are fortunate to have investigators and partner agencies that root out these criminal schemes.”
This case was investigated by the FBI, Drug Enforcement Administration, Health and Human Services – Office of Inspector General, Ohio Attorney General’s Healthcare Fraud Section and Ohio Board of Pharmacy. This case is being prosecuted by Assistant United States Attorney Megan R. Miller.
U.S. Attorney and FBI Cleveland Warn About COVID Fraud Enforcement ScamRead the Press Release
CLEVELAND - A new twist on an old scam is targeting consumers and businesses throughout Northeast Ohio. The United States Attorney’s Office, Northern District of Ohio, and FBI Cleveland are warning the public about a scam that combines aspects of tech-support fraud with government impersonation.
In this scam, the victim receives a document or documents resembling an official court document both in its format and language, sent through an email, the U.S. Mail, a text, or website pop-up. The document and/or accompanying notice state that the victim is being investigated for Paycheck Protection Program (“PPP”) fraud and that an arrest warrant has been issued. The notice asserts that the Department of Justice (“DOJ”) Civil Division’s Commercial Litigation Branch has issued it, and it states that, to “lift the warrant,” the victim must go to a cryptocurrency kiosk and make a designated payment. Such notices and documents are fake, and persons who receive them should report receiving them to the FBI at https://www.ic3.gov.
“Fraudsters are often quite sophisticated. Time and again, we see these criminals refine their schemes to make their false claims seem more believable, and then succeed in cheating our community members of their hard-earned money,” said U.S. Attorney Rebecca C. Lutzko. “Recently, we are seeing more and more scammers impersonate law enforcement officers, government agencies, banks, and companies, and use these false personas to convince their victims to hand over money, gold, or other things of value. The United States Attorney’s Office, the FBI, and our other law enforcement partners will continue to pursue such scammers aggressively, but we would much rather prevent a scam than prosecute one. Please remain vigilant, treat unsolicited emails, texts, and pop-up ads with suspicion, and check in on friends or loved ones who you think might be particularly susceptible to these types of scams. And if you believe that either you or someone you know has been the victim of a scam, promptly report it to the FBI or, if appropriate, call the National Elder Fraud Hotline at 1-833-FRAUD-11 [1-833-372-8311].”
“Scammers are becoming increasingly clever in the way they are portraying government agencies and banking and financial institutions,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “This scam-- creating bogus documents designed to look like a court summons and compelling the victim to oblige or face arrest, jail time, or further action, highlights the efforts the criminals will take to dupe unsuspecting victims. We can’t stress enough to the public that the government will not contact you via email or text with a summons for action, payment, or arrest and instead, urge residents to place a phone call with the publicly listed phone number of the government agency, not the number or email listed in the [bogus] document, to confirm if a communication was sent by that agency. Typically, it’s a scam. And in that case, we ask that you report it to the FBIs Internet Crime Complaint Center at ic3.gov.”
In addition to COVID Fraud Enforcement and PPP Resolution scams, internet-based crimes continue to target all Americans. According to information from the FBI’s Internet Crime Complaint Center, last year, consumers in Toledo, Akron, Cleveland, Youngstown, and beyond reported that they received notifications that their computer or Amazon account was compromised. These alerts came in the form of websites or pop-ups. Victims believed they were talking to tech support staff from Microsoft or Amazon and then were transferred to other individuals who represented themselves as an "officer of the law" or staff from the Federal Trade Commission (FTC) or Federal Bureau of Investigation (FBI) who then requested tens of thousands of dollars to remedy the situation. The victims were asked to put the cash in a package and then meet with a “federal marshal” for the pickup. The locations where the victims met the couriers were areas like gas stations, fast food restaurant parking lots, and even their own homes. Sometimes the victims were shown educational videos about fraud by the scammers and thanked for “doing the right thing” and supporting law enforcement efforts. Victims were often older consumers who lost tens of thousands of dollars. While tech support scams are not new, this newest trend is quite frightening because scammers are requesting face-to-face meetings for cash pickups while impersonating law enforcement. Both seniors and their families should be aware of this and other, similar scams.
Consumers who are asked to wire, pay, or transport large amounts of cash or crypto currency to avoid arrest, jail time, or fix a tech support or some type of business-related account issue should cease communications, and instead contact the FBI directly by filing a report online at the Internet Crime Complaint Center (https://www.ic3.gov).
Additionally, consumers should always try to verify questionable correspondence with a government agency or member of law enforcement by a separate means—such as contacting them directly using information found on an official website.
Two Indian Nationals Charged in Elder Fraud Gold Bar Courier ScamRead the Press Release
Cleveland – Anil Mangukia, 39, of Edison, New Jersey, and Yash Navadia, 25 of Secaucus, New Jersey, who were Indian Nationals, were both indicted by a federal grand jury and charged with money laundering conspiracy for their roles in an elder fraud gold bar courier scam (“Courier Scam”) targeting older Americans. They allegedly stole more than $127,000 and attempted to steal an additional $650,000 from a victim in Warrren, Ohio.
According to court documents, coconspirators posed as a customer service employee at a company or bank. They contacted a victim—typically an elder person—and falsely claimed that the victim’s account was at risk or had been compromised by a hacking event or similar computer intrusion. The purported customer service employee then referred the victim to another perpetrator who posed as a government agent, claiming that the fake government agent would assist the victim in avoiding or mitigating the effects of the account compromise. The fake government agent would discuss the incident with the victim, validate the false story told by the purported customer service or bank employee, and instruct the victim to either (1) move the victim’s money to another account that the perpetrators controlled, or (2) purchase gold or other valuable items and move them to the perpetrators’ account, claiming that the new account was secure and safe from the purported hackers. The perpetrators then used the stolen funds for their own benefit, without the victim’s knowledge or consent.
According to court documents, the defendants caused their victims to engage in several different types of transfers, such as the following: (i) withdrawing currency, converting it to cryptocurrency, and transferring the cryptocurrency to the coconspirators, who claimed they would deposit it into secure accounts; (ii) initiating bank transfers directly from victim’s accounts to acquire things of value that were handed over or otherwise transferred to coconspirators, who claimed that they would then convert those items into funds and deposit them in a secure account for the victim.
According to court documents, the defendants and their coconspirators also obtained proceeds from the Courier Scam directly from victims, traveling to meet victims either at their homes or nearby designated locations. There, the victims would give the defendants and their coconspirators U.S. currency, gold bars, or gold coins under false pretenses, persuaded that the perpetrators would secure the victims’ property.
“Our Office is committed to investigating and prosecuting those who commit financial scams that defraud our elderly citizens of their hard-earned savings,” said U.S. Attorney Rebecca C. Lutzko. “Financial fraud schemes of any variety cause serious financial harm to our community members, but those that target the elderly are particularly reprehensible. We encourage all members of the public to remain vigilant against such hoaxes and report suspected scams to law enforcement.”
“The FBI is focused on finding and investigating criminals preying on the trust of older Americans,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “Scams are becoming more complex, with several layers of deceit in their ploy and bad actors working in groups to give the illusion of legitimacy. The FBI will not yield in its pursuit to identify these criminals and dismantle scam and fraud-based networks.”
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it is the government’s burden to prove guilt beyond a reasonable doubt. If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This investigation was conducted by the Cleveland Division of the FBI. This case is being prosecuted by Assistant U.S. Attorneys Yasmine Makridis and Brian M. McDonough.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 10:00 a.m. to 6:00 p.m. eastern time. English, Spanish and other languages are available.
Northern Ohio Man Sentenced to Prison for Selling Fentanyl That Caused Six Overdoses, Including Two DeathsRead the Press Release
TOLEDO – Gerald Isom, age 49, of Toledo, Ohio, was sentenced to 300 months in prison by U.S. District Judge James R. Knepp, II, after earlier pleading guilty to two counts of distribution of fentanyl. Isom was also ordered to serve 3 years of supervised release and pay a $200 special assessment and $1,026 in restitution.
According to court documents, during the evening of December 26, 2019, Isom sold fentanyl to a group of five young men who believed they were receiving cocaine. The young men snorted the fentanyl, and all five overdosed. Three of the young men later woke up to find out that two members of group had died as a result of ingesting the fentanyl. That same evening, Isom sold fentanyl to another man who believed he was receiving cocaine. That man also overdosed, but survived after he was revived with Narcan.
The investigation was conducted by the Lucas County Sheriff’s Office and the Federal Bureau of Investigation. This case was prosecuted by Assistant U.S. Attorneys Robert Melching, Alissa Sterling, and Michael Freeman.
Holland Woman Sentenced to Prison for Wire Fraud, Aggravated Identity Theft and Money LaunderingRead the Press Release
TOLEDO – Teresia M. Jones, 34, of Holland, Ohio, was sentenced to 7 years in prison by District Judge Jack Zouhary after earlier pleading guilty to wire fraud, aggravated identity theft and money laundering. Jones received 5 years for wire fraud and money laundering and an additional 2 years for aggravated identity theft which must be served consecutively. Jones was also ordered to pay restitution in the amount of $2,929,519, a $300 special assessment and serve 2 years of supervised release.
According to the court records and testimony beginning in January 2020, Jones defrauded the IRS through a wide-ranging tax refund scheme by submitting false and fraudulent tax filings using stolen identities and claiming millions of dollars in improper tax refunds. Jones then used these funds for personal spending. This tax refund scheme used stolen identity information from real people and businesses. Jones would then prepare and file these fraudulent tax return electronically.
In addition, Jones laundered the stolen tax funds by purchasing a 2022 Cadillac Escalade for over $150,000, real property among other transactions. The Cadillac Escalade was forfeited by government along with a 2022 Dodge Ram truck, two parcels of real property and approximately $328,000 seized from bank accounts.
This investigation was conducted by the IRS Criminal Investigations (CI) and the United States Secret Service (USSS). This case is being prosecuted by Assistant U.S. Attorney Gene Crawford.
Former CFO of Claddagh Irish Pubs Parent Company Sentenced to Imprisonment for Defrauding States Out of More Than $1 Million in Sales Tax RevenueRead the Press Release
CLEVELAND – Ciaran Dillon, 57, of Orlando, Florida, was sentenced to 18 months imprisonment and ordered to pay a $25,000 fine by U.S District Judge Christopher A. Boyko after pleading guilty to defrauding multiple states of sales tax revenue where the restaurant chain operated. Dillon, was the former Chief Financial Officer (CFO) of CDG Acquisition, LLC (CDG), a company registered in the State of Ohio, which owned “The Claddagh Irish Pubs” chain of restaurants.
According to court documents, from January 2010 through May 2018, the defendant, acting in his official capacity as CFO of CDG, directed a company accountant to pay certain states less sales tax than the true amount owed. Based on the defendant’s instruction, the accountant would edit the company's sales and sales tax figures, file false tax returns and pay states the amount instructed by the defendant. In total, the defendant defrauded the States of Indiana, Kentucky, Illinois, Michigan, Minnesota, Ohio, Pennsylvania and Wisconsin out of more than $1 million in sales tax revenue collected from CDG customers across fifteen restaurants.
The Court determined the defendant’s sentence after a review of factors unique to the case and the defendant, including the defendant’s role in the offenses and the nature of the crimes.
This investigation was conducted by the Federal Bureau of Investigation, Cleveland Division. The case was prosecuted by Assistant United States Attorney Alejandro A. Abreu.
Cleveland Man Sentenced to 25 Years for Drug DistributionRead the Press Release
AKRON – Curtis Anderson, age 53, of Cleveland, Ohio, was sentenced to 300 months (25 years) in prison and 5 years of supervised release by U.S. District Judge John R. Adams after a jury previously convicted him of participating in a conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine.
According to court documents and testimony, in June 2021, Anderson’s coconspirator, Earl King, boarded a flight from Cleveland, Ohio to Brownsville, Texas. Law enforcement searched King’s checked bag and found that it contained approximately $154,000 in cash hidden inside of a hollowed-out desktop computer. Several days later, law enforcement seized a UPS parcel containing approximately eleven kilograms of cocaine that had been shipped from a UPS store in Brownsville to an address in Cleveland. The cocaine in the UPS parcel was hidden inside a similar type of hollowed-out desktop computer tower. Law enforcement subsequently searched Earl King’s apartment in Cleveland as part of the investigation and seized several cell phones from the apartment. Those cell phones had numerous saved text messages showing that King, Anderson, Donnell Gochett, and others were all participating in a conspiracy to smuggle kilograms of cocaine across the US-Mexico border near Brownsville, and then ship the cocaine kilograms back to Cleveland in UPS parcels.
Based on a review of cell phone evidence, flight records, and UPS shipment records, Curtis Anderson’s role in the conspiracy included providing cash for King to travel to the border to purchase cocaine kilograms from a person, who was a Mexican national, providing King with an address in Cleveland where the cocaine parcels could be shipped, tracking the delivery status of the UPS parcels, selling the cocaine after it was shipped back to Cleveland, and traveling to the US-Mexico border to meet with others.
Earl King and Donnell Gochett both previously pleaded guilty. King was sentenced to 180 months in prison, and Gochett was sentenced to 100 months in prison.
The case was investigated by Homeland Security Investigations, with assistance from the DEA and the Cleveland Division of Police. The case was prosecuted by Assistant U.S. Attorneys James Lewis and Yasmine Makridis.
Owner of Cuyahoga Falls Tax Prep Business Sentenced for Filing a False Tax ReturnRead the Press Release
Lateesha Black, 52, of Hudson, Ohio, was sentenced to 12 months and a day in prison by United States District Judge Benita Y. Pearson and ordered to pay restitution to the IRS in the amount of $114,022 after previously pleading guilty to aiding or assisting in filing a false tax return and corrupt endeavor to obstruct and impede the administration of the internal revenue laws. Black was also fined $15,000.
According to court documents, Black owned and operated Ideal Accounting Solutions L.L.C. (“Ideal”), an accounting and tax preparation business in Cuyahoga Falls, Ohio. Over the course of several years, Black knowingly prepared several false tax returns for her clients by claiming false Schedule C net losses, income, and expenses in order to inflate the size of her clients’ tax refund. Black then electronically filed these false tax returns in her clients’ names.
In 2019, Special Agents with IRS Criminal Investigation (IRS-CI) interviewed Black regarding Ideal’s tax preparation activities and served Black with an IRS summons for Ideal’s business records. After being served the summons, and in an attempt to conceal her fraud from IRS-CI, Black requested to meet with multiple clients and had them sign false and, in some instances back-dated, tax preparation working papers in order to substantiate the false Schedule C net losses, income, and expenses previously filed. The false tax preparation working papers were then provided to Special Agents.
The investigation was conducted by IRS Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Edward D. Brydle.
Federal Investigation of GBEN Pump-and-Dump Scheme Results in Conviction of Eight Men and Recovery of over $400,000 for Victim RestitutionRead the Press Release
CLEVELAND - United States Attorney Rebecca C. Lutzko announced the results of a federal investigation involving eight men that were charged in two cases with participating in a pump-and-dump scheme designed to inflate the stock price of Global Resources, Inc. (“GBEN”), a public company that purportedly planned to bring hemp-infused wine to market. All the defendants pleaded guilty and were sentenced to a combined total of 165 months of imprisonment.
The defendants charged and convicted were Thomas Collins, 50, of Weatherford, Texas; Patrick Thomas, 50, of Carrollton, Texas; Hughe Duwayne Graham, 66, of Riverside, California; Brian Kingsfield, 54, of Costa Mesa, California; Tyler Paulson, 62, of Canyon Lake, California; Gary Kouletas, 47, of Hasbrouck Heights, New Jersey; and Scott Levine, 45, of Delray Beach, Florida.
According to court documents, from February 2014 to August 2020, the defendants conspired to defraud investors by issuing millions of shares to themselves at little to no cost, artificially controlling the price and volume of shares using manipulative trading techniques, and obfuscating the true sellers of stock, all while selling the stock at fraudulently inflated prices to unsuspecting victims in Ohio and throughout the country.
As part of the scheme, Levine used his position to facilitate the conspiracy’s ability to execute trades of GBEN shares between company insiders and investors who had been solicited to buy blocks of free-trading stock. Kouletas and others operated PAG Group, which was used to enter into secret agreements with company insiders to sell free-trading stock on their behalf for a portion of the proceeds. Members of the conspiracy also knowingly made false statements and omissions when they solicited investors to purchase restricted GBEN stock, including concealing the fact that the salesman’s compensation was up to 40% of the victim’s investment.
As a result of the defendants’ combined fraudulent conduct, nearly 50 identified investors lost more than $2 million after purchasing worthless restricted and free-trading stock.
The Court determined each defendant’s sentence after a review of factors unique to each case and defendant, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses, and the nature of the crimes. The defendants were sentenced to the following terms of imprisonment: Thomas Collins, 37 months; Patrick Thomas, 18 months; Hughe Duwayne Graham, 12 months and 1 day; Brian Kingsfield, 37 months; Gary Kouletas, 43 months; and Scott Levine, 18 months. The defendants were also ordered to pay restitution to the identified victim-investors. So far, the government has recovered over $400,000, which the Clerk of Court will distribute to victims for restitution.
The investigation was conducted by the Federal Bureau of Investigation, Cleveland Division. The cases were prosecuted by Assistant United States Attorney Alejandro A. Abreu.
Huron Man Charged with over $2.5 Million in COVID-19 Relief FraudRead the Press Release
TOLEDO – A federal grand jury in Toledo returned an indictment on February 7, 2024, charging Daniel R. Hitlan, of Huron, Ohio, with three counts of bank fraud and five counts of money laundering related to filing false applications for Paycheck Protection Program loans.
The indictment charges that between April 14, 2020 and May 13, 2020, Hitlan submitted three false PPP loan applications and received funding totaling $2,578,318. Hitlan applied for the loans using two businesses that he owned: Sailor Sales, LLC and Daniel Robert Hitlan. Hitlan applied for the loans at three separate banks. In each instance, he falsely stated the number of employees for the businesses and claimed to have payroll expenses when in fact the businesses had no payroll expenses. Hitlan supported the PPP loan applications by creating and submitting fictitious payroll documents and payroll forms with his application.
It is further alleged that Hitlan used the proceeds to conduct several financial transactions to include a check for $88,811.27 for the purchase of a 2020 Cadillac Escalade, another check for $48,232.63 for the purchase of a 1968 Chevrolet Corvette, two wires for the purchase of real estate in the amounts of $179,013.97 and $248,423.89, and a debit card transaction for $20,000 to a jeweler for the purchase of Rolex watches.
An indictment is only a charge and 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.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.
The investigation was conducted by IRS–Criminal Investigations and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Gene Crawford.
Detroit Man Sentenced to Prison for Possession of Methamphetamine with Intent to DistributeRead the Press Release
TOLEDO – Eddie Lee Pope, age 51, of Detroit, Michigan, was sentenced on February 6, 2024, to 240 months in prison by U.S. District Judge Jeffrey Helmick, after being convicted by a jury, in October 2023, of possession of methamphetamine with the intent to distribute. Pope was sentenced to ten years of supervised release after he serves his prison term and ordered to pay a $100 special assessment.
According to court documents and evidence presented at trial, Pope was stopped by Ohio State Highway Patrol troopers on State Route 15 in Wyandot County for a traffic offense. After troopers on the scene pulled Pope over, Pope ran into a stand of woods on the side of the highway and discarded a bag containing a pound of crystal methamphetamine. Pope, who had several prior drug trafficking convictions, was on parole at the time he possessed the crystal methamphetamine.
The investigation was conducted by the Ohio State Highway Patrol and the Drug Enforcement Administration. This case was prosecuted by Assistant U.S. Attorneys Robert Melching and Alissa Sterling.
Northern Ohio Man Sentenced to Prison for Coercion and Enticement of a Minor and Transportation of a Minor Across State Lines for Sexual ActivityRead the Press Release
TOLEDO – Jeffrey Deitsch, 36, of St. Marys and later Spencerville, Ohio, was sentenced on February 1, 2024, to 210 months in prison by U.S. District Judge Jeffrey J. Helmick, after he pleaded guilty to coercion and enticement of a minor and transportation of a minor across state lines for illicit sexual activity. Deitsch was also sentenced to 25 years of supervised release after he serves his prison term and ordered to pay a $200 special assessment and an additional assessment of $5,000 under the Justice for Victims of Trafficking Act.
According to court documents, Deitsch met a 15-year-old Illinois girl online, drove from Ohio to Illinois less than a week later, and transported her back to Ohio where he engaged in illicit sexual activity with her. On June 25, 2020, Allen County Sheriff’s Deputies were dispatched to a hotel in Lima after receiving a report that the Illinois runaway was staying there with Deitsch, who was more than twice her age. Sheriff’s Deputies located the victim who later advised that Deitsch had told her to tell anyone who asked that she was 18. Deitsch admitted to law enforcement that he knew the victim’s age before transporting her and engaging in the sex acts.
Deitsch had just been released from state prison the month before, after having served a prison term for abduction of a different female.
The investigation was conducted by the Federal Bureau of Investigation in Lima, Ohio. This case was prosecuted by Assistant U.S. Attorneys, Tracey Tangeman and Angelita Cruz Bridges.
Cleveland Area Brothers Indicted for Fraud and Money Laundering SchemesRead the Press Release
CLEVELAND – Rebecca C. Lutzko, United States Attorney for the Northern District of Ohio announced today that a federal grand jury sitting in Cleveland returned a twenty-two count indictment charging two Cleveland area brothers with multiple fraud and money laundering schemes.
Zubair Mehmet Abdur Razzaq Al Zubair, 41, recently of Bratenahl, Ohio, and his brother Muzzammil Muhammad Al Zubair, 30, recently of Pepper Pike, Ohio, face one count of conspiracy to commit wire fraud, 14 counts of wire fraud, one count of conspiracy to engage in money laundering, four counts of money laundering, and one count of theft of government funds. Zubair Al Zubair also faces one count of harboring a fugitive.
The indictment charges that from June 2020 through August 2023, the Al Zubair brothers engaged in multiple schemes, including an investment fraud scheme, a Small Business Administration COVID-19 relief Emergency Income Disaster Loan scheme, a cryptocurrency mining scheme, a commercial real estate lease scheme, and a residential real estate lease scheme. According to the facts alleged in the indictment, the Al Zubair brothers obtained funds and property from victims under false pretenses and spent the proceeds on luxury items, such as cars, travel, entertainment, firearms, and jewelry. They allegedly falsely claimed to have extraordinary wealth and government connections. Zubair Al Zubair also allegedly falsely claimed to be married to a princess and to be a member of a royal family in the United Arab Emirates. The defendants also allegedly made false claims about potential investments returns, about property they owned or controlled, and about their intentions, among other falsehoods alleged in the indictment. Through these false claims, the Al Zubair brothers allegedly obtained millions of dollars from their victims. In addition to the fraud and money laundering charges, Zubair Al Zubair is also charged with providing a place to stay and transportation to a fugitive wanted on federal criminal charges.
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.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Matthew W. Shepherd.
Former Employee of Eye for Change Youth and Family Services Sentenced to Prison for Fraudulent Medicaid Billing PracticesRead the Press Release
CLEVELAND – Eric King, 35, of Cleveland, Ohio, was sentenced today to 36 months in prison by U.S. District Judge Pamela A. Barker, U.S. Attorney Rebecca C. Lutzko announced today. King was also sentenced to 3 years of supervised release, $1,800 in special assessments, and restitution of $483,165.38.
King, a former employee of Eye For Change Youth and Family Services, Inc., a non-profit corporation in Cleveland, was previously found guilty after a jury trial of 13 counts of health care fraud, one count of false statement relating to health care matters, and five counts of aggravated identity theft.
According to court documents, trial testimony, and today’s sentencing hearing, from June 2018 through May 2021, King defrauded Medicaid by causing Medicaid to be billed for services not actually performed or for services that were not actually performed for the amount of time the billing codes reflected; for falsifying progress notes into Medicaid beneficiary electronic records; for creating false progress notes; and for using the identities of clients without authorization to bill Medicaid. As a result of King’s conduct, Medicaid paid over $483,000 for fraudulent billings.
The investigation preceding the indictment was conducted by the Cleveland Division of the FBI, the Department of Health and Human Services -- Office of the Inspector General and the Ohio Attorney General’s Healthcare Fraud Section. This case was prosecuted by Assistant U.S. Attorneys Edward D. Brydle and Brian M. McDonough, and Special Assistant U.S. Attorney Jonathan L. Metzler.
Ohio Man Sentenced to 18 Years in Prison for Firebombing a Church that Planned to Host Drag Show EventsRead the Press Release
An Ohio man was sentenced yesterday to 216 months in prison followed by three years of supervised release for attempting to burn down a church because of its support for the LGBTQ+ community.
Aimenn D. Penny, 20, of Alliance, Ohio, was arrested and charged last year with one count of violating the Church Arson Prevention Act, one count of using fire to commit a federal felony, one count of malicious use of explosive materials, and one count of possessing a destructive device. On Oct. 23, 2023, Penny pleaded guilty to the church arson hate crime and using fire and explosives to commit a felony.
According to court documents, on March 25, 2023, Penny made Molotov cocktails and drove to the Community Church of Chesterland (CCC), in Chesterland, Ohio. Angered by the church’s plan to host two drag events the following weekend, Penny threw two Molotov cocktails at the church, hoping to burn it to the ground. Through Penny’s guilty plea, he admitted to using force through fire and explosives, intending to obstruct CCC congregants in their enjoyment and expression of their religious beliefs.
“This sentence holds Mr. Penny accountable for carrying out violence against an Ohio church because he disagreed with the way congregants chose to express their beliefs,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Such acts of extremist violence have no place in our communities and the Justice Department is committed to bringing to justice those who would use or threaten violence to prevent their fellow citizens from freely exercising their fundamental rights.”
“We hope this significant sentence sends a clear and resounding message that this type of hate-fueled attack against a church will not be tolerated in our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant tried to burn down a church simply because its members created space for and provided support to the LGBTQ+ community. The Justice Department will vigorously investigate and prosecute such senseless, bias-motivated violence against people exercising their constitutionally protected right to practice their religion and express their beliefs.”
“Aimenn Penny will spend the next 18 years in prison because he committed crimes fueled by hate, attempting to burn down a church because its members supported the LGBTQI+ community,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Hate crimes like Penny’s hurt not only the individual target, but the entire community, causing people to fear attack based on who they love and undermining the sense of safety within places of worship. Violent, bias-motivated extremism has no place in our country, and our office will aggressively prosecute those who commit such crimes.”
“Aimenn Penny is being held accountable for trying to burn down a house of worship because he disagreed with the church hosting certain events,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “Individuals who commit acts of violence, destroy property, and interfere with the free exercise of religion will face justice for those crimes. As in this case, the FBI, together with our law enforcement partners, will use our lawful authorities to protect our communities from such violence, and ensure those responsible pay the price.”
The FBI Cleveland Field Office investigated the case.
Assistant U.S. Attorneys Brian Deckert and Matthew W. Shepard for the Northern District of Ohio, Trial Attorneys Jacob Warren and Justin Sher of the National Security Division’s Counterterrorism Section, and Trial Attorney Eric Peffley of the Civil Rights Division’s Criminal Section prosecuted the case.
Ohio Man Sentenced to 18 Years in Prison for Firebombing a Church that Planned to Host Drag Show EventsRead the Press Release
An Ohio man was sentenced yesterday to 216 months in prison followed by three years of supervised release for attempting to burn down a church because of its support for the LGBTQ+ community.
Aimenn D. Penny, 20, of Alliance, Ohio, was arrested and charged last year with one count of violating the Church Arson Prevention Act, one count of using fire to commit a federal felony, one count of malicious use of explosive materials, and one count of possessing a destructive device. On Oct. 23, 2023, Penny pleaded guilty to the church arson hate crime and using fire and explosives to commit a felony.
According to court documents, on March 25, 2023, Penny made Molotov cocktails and drove to the Community Church of Chesterland (CCC), in Chesterland, Ohio. Angered by the church’s plan to host two drag events the following weekend, Penny threw two Molotov cocktails at the church, hoping to burn it to the ground. Through Penny’s guilty plea, he admitted to using force through fire and explosives, intending to obstruct CCC congregants in their enjoyment and expression of their religious beliefs.
“This sentence holds Mr. Penny accountable for carrying out violence against an Ohio church because he disagreed with the way congregants chose to express their beliefs,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Such acts of extremist violence have no place in our communities and the Justice Department is committed to bringing to justice those who would use or threaten violence to prevent their fellow citizens from freely exercising their fundamental rights.”
“We hope this significant sentence sends a clear and resounding message that this type of hate-fueled attack against a church will not be tolerated in our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant tried to burn down a church simply because its members created space for and provided support to the LGBTQ+ community. The Justice Department will vigorously investigate and prosecute such senseless, bias-motivated violence against people exercising their constitutionally protected right to practice their religion and express their beliefs.”
“Aimenn Penny will spend the next 18 years in prison because he committed crimes fueled by hate, attempting to burn down a church because its members supported the LGBTQI+ community,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Hate crimes like Penny’s hurt not only the individual target, but the entire community, causing people to fear attack based on who they love and undermining the sense of safety within places of worship. Violent, bias-motivated extremism has no place in our country, and our office will aggressively prosecute those who commit such crimes.”
“Aimenn Penny is being held accountable for trying to burn down a house of worship because he disagreed with the church hosting certain events,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “Individuals who commit acts of violence, destroy property, and interfere with the free exercise of religion will face justice for those crimes. As in this case, the FBI, together with our law enforcement partners, will use our lawful authorities to protect our communities from such violence, and ensure those responsible pay the price.”
The FBI Cleveland Field Office investigated the case.
Assistant U.S. Attorneys Brian Deckert and Matthew W. Shepard for the Northern District of Ohio, Trial Attorneys Jacob Warren and Justin Sher of the National Security Division’s Counterterrorism Section, and Trial Attorney Eric Peffley of the Civil Rights Division’s Criminal Section prosecuted the case.
Two Ohio Men Convicted of Gambling and Tax OffensesRead the Press Release
On Friday, a federal jury convicted two Ohio men of tax, gambling, money laundering, conspiracy and obstruction crimes related to their operation of illegal gambling businesses in Canton and their scheme to conceal the illicit proceeds from those businesses to avoid paying taxes. Two others involved in the conspiracy pleaded guilty.
Convictions
According to court documents and evidence presented at trial, between 2009 and 2018, Christos Karasarides Jr. and Ronald DiPietro, together with others, operated multiple illegal gambling businesses, including Skilled Shamrock, as part of an organized criminal operation. At Skilled Shamrock, which primarily operated slot machines, patrons gambled more than $34 million between 2012 and 2017, with Skilled Shamrock’s owners retaining more than $7 million. Karasarides and DiPietro sought to conceal their ownership of the gambling businesses through the use of nominee owners and sham contracts.
Karasarides owed the IRS more than $2 million in taxes on income he earned gambling and from other businesses he ran, which the IRS was trying to collect. DiPietro, who was also a Certified Public Accountant, assisted Karasarides in thwarting the IRS’s collection efforts by falsely representing to the IRS, including by preparing tax returns for Karasarides, that Karasarides did not have the assets or income to pay his taxes. Evidence at trial also showed that Karasarides conspired to launder money from his gambling businesses to make it more difficult for the IRS to seize his home by using a straw purchaser to disguise his ownership of it.
Karasarides and DiPietro used the proceeds of their schemes to purchase luxury vehicles and buy and sell property. Karasarides also took several extravagant gambling trips, making millions of dollars of bets at legal casinos throughout the country. They also kept thousands and sometimes hundreds of thousands of dollars in cash or silver at their homes and other properties they controlled. For instance, law enforcement seized more than $150,000 in cash from Karasarides’ house.
Sentencing for both men is scheduled for May 1 before U.S. District Judge Donald Nugent for the Northern District of Ohio. Karasarides faces a maximum penalty of twenty years in prison for conspiracy to commit money laundering, five years in prison for tax evasion, five years in prison for each count of conspiracy to operate an illegal gambling business, five years in prison for each count of conspiracy to defraud the United States, five years in prison for falsification of records, three years in prison for each count of operating an illegal gambling business, three years in prison for witness tampering and three years in prison for filing false income tax returns.
DiPietro faces a maximum penalty of five years in prison for conspiracy to operate an illegal gambling business, three years in prison for operating an illegal gambling business, five years in prison for tax evasion and three years in prison for each count of preparing false income tax returns.
Pleas
Just prior to the trial, Thomas Helmick, who served as a nominee owner of one of Karasarides’ illegal gambling businesses, pleaded guilty to conspiring to defraud the United States. Helmick is scheduled to be sentenced before U.S. District Judge Donald Nugent on May 2. He faces a maximum penalty of five years in prison.
During the course of the trial, Christopher Karasarides, pleaded guilty to conspiring to defraud the United States by executing false documents and acting as a nominee owner for some of Christos Karasarides’ assets. Christopher Karasarides is scheduled to be sentenced before U.S. District Judge Donald Nugent on April 30. He faces a maximum penalty of five years in prison.
A federal district court judge will determine the sentence of each defendant after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS Criminal Investigation; U.S. Department of Homeland Security, Homeland Security Investigations; the U.S. Department of Treasury, Office of Inspector General; the Stark County Prosecutor’s Office; the Ohio Casino Control Commission and Ohio Organized Crime Investigations Commission-Major Crimes Task Force are investigating the case.
Trial Attorneys Sam Bean and Hayter Whitman of the Justice Department’s Tax Division and Assistant U.S. Attorney Aaron Howell for the Northern District of Ohio are prosecuting the case.
Youngstown Man Sentenced to More than 14 years for Leading a Drug Conspiracy in Youngstown AreaRead the Press Release
CLEVELAND – Terrance May, 48, of Youngstown, Ohio, was sentenced today to 175 months in prison by U.S. District Judge Benita Y. Pearson today after earlier pleading guilty to conspiracy to distribute drugs and distributing drugs. May was ordered to serve 15 years of supervised release following imprisonment and pay a $2,400 special assessment.
According to court documents and court records, May led a drug conspiracy in the Youngstown area that distributed fentanyl, cocaine, cocaine base, and heroin from February 2020 until January of 2022. Investigators used a wiretap to intercept drug communications from May and other co-conspirators that led to search warrants being executed that resulted in seizures of illegal drugs.
The investigation was conducted by the Federal Bureau of Investigation (FBI), Youngstown, the Youngstown Police Department, the Boardman Police Department, the Mahoning County Sheriff’s Office, and the Campbell Police Department. This case was prosecuted by Assistant U.S. Attorney Jason M. Katz.
Russian National Sentenced for Involvement in Development and Deployment of Trickbot MalwareRead the Press Release
A Russian national was sentenced yesterday to five years and four months in prison for his involvement in developing and deploying the malicious software known as Trickbot, which was used to launch cyberattacks against American hospitals and other businesses.
According to court documents and public reporting, Vladimir Dunaev, 40, of Amur Oblast, Russia, provided specialized services and technical abilities in furtherance of the Trickbot scheme. Trickbot, which was taken down in 2022, was a suite of malware tools designed to steal money and facilitate the installation of ransomware. Hospitals, schools, and businesses were among the millions of Trickbot victims who suffered tens of millions of dollars in losses. While active, Trickbot malware, which acted as an initial intrusion vector into victim computer systems, was used to support various ransomware variants.
“This sentencing demonstrates the department’s ability to place cybercriminals behind bars, no matter where they are located,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “In cooperation with our partners around the world, we will continue to bring cybercriminals to justice.”
“Dunaev developed malicious ransomware and deployed it to attack American hospitals, schools, and businesses in the Northern District of Ohio and throughout our country, all while hiding behind his computer,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “He and his co-defendants caused immeasurable disruption and financial damage, maliciously infecting millions of computers worldwide, and Dunaev will now spend over five years behind bars as a result. Dunaev’s case demonstrates that the Justice Department and our office will use all available resources to investigate and prosecute cybercrime, and we thank our international partners for their cooperation in helping us stop cybercriminals like Dunaev and bring them to justice.”
Dunaev developed browser modifications and malicious tools that aided in credential harvesting and data mining from infected computers, facilitated and enhanced the remote access used by Trickbot actors, and created a program code to prevent the Trickbot malware from being detected by legitimate security software. During Dunaev’s participation in the scheme, 10 victims in the Northern District of Ohio, including Avon schools and a North Canton real-estate company, were defrauded of more than $3.4 million via ransomware deployed by Trickbot.
“The FBI relentlessly investigates criminal activity impacting the American people even when the perpetrators reside beyond our borders,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “Combating malicious cyber actors is a team sport, and we are proud of the coordinated effort that brought about this sentencing.”
“This case and subsequent sentencing sends a strong message to cybercriminals and other bad actors who target individuals and businesses with malicious intent,” said Special Agent in Charge Greg Nelsen of the FBI Cleveland Field Office. “The complexities of this case required careful coordination among our domestic and international partners and their commitment to meticulous investigative work. I am proud of the synchronized effort to see that justice was served.”
In 2021, Dunaev was extradited from the Republic of Korea to the Northern District of Ohio. On Nov. 30, 2023, Dunaev pleaded guilty to conspiracy to commit computer fraud and identity theft and conspiracy to commit wire fraud and bank fraud.
The original indictment returned in the Northern District of Ohio charged Dunaev and six other defendants for their alleged roles in developing, deploying, managing, and profiting from Trickbot.
In June, one of Dunaev’s co-conspirators, Alla Witte, who was a Trickbot malware developer and Latvian national, pleaded guilty to conspiracy to commit computer fraud and was sentenced to two years and eight months in prison.
In February and September 2023, the Treasury Department’s Office of Foreign Assets Control (OFAC) issued financial sanctions against multiple suspected Trickbot members.
The FBI Cleveland Field Office investigated the case.
Trial Attorney Candy Heath of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Duncan Brown and Daniel Riedl for the Northern District of Ohio prosecuted the case. The Justice Department’s Office of International Affairs and National Security Division, as well as the Treasury Department’s OFAC, provided significant assistance.
The Justice Department’s Office of International Affairs worked with the International Criminal Affairs Division of the South Korean Ministry of Justice to secure the arrest and extradition of Dunaev.
Russian National Sentenced for Involvement in Development and Deployment of Trickbot MalwareRead the Press Release
A Russian national was sentenced yesterday to five years and four months in prison for his involvement in developing and deploying the malicious software known as Trickbot, which was used to launch cyberattacks against American hospitals and other businesses.
According to court documents and public reporting, Vladimir Dunaev, 40, of Amur Oblast, Russia, provided specialized services and technical abilities in furtherance of the Trickbot scheme. Trickbot, which was taken down in 2022, was a suite of malware tools designed to steal money and facilitate the installation of ransomware. Hospitals, schools, and businesses were among the millions of Trickbot victims who suffered tens of millions of dollars in losses. While active, Trickbot malware, which acted as an initial intrusion vector into victim computer systems, was used to support various ransomware variants.
“This sentencing demonstrates the department’s ability to place cybercriminals behind bars, no matter where they are located,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “In cooperation with our partners around the world, we will continue to bring cybercriminals to justice.”
“Dunaev developed malicious ransomware and deployed it to attack American hospitals, schools, and businesses in the Northern District of Ohio and throughout our country, all while hiding behind his computer,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “He and his co-defendants caused immeasurable disruption and financial damage, maliciously infecting millions of computers worldwide, and Dunaev will now spend over five years behind bars as a result. Dunaev’s case demonstrates that the Justice Department and our office will use all available resources to investigate and prosecute cybercrime, and we thank our international partners for their cooperation in helping us stop cybercriminals like Dunaev and bring them to justice.”
Dunaev developed browser modifications and malicious tools that aided in credential harvesting and datamining from infected computers, facilitated and enhanced the remote access used by Trickbot actors, and created a program code to prevent the Trickbot malware from being detected by legitimate security software. During Dunaev’s participation in the scheme, 10 victims in the Northern District of Ohio, including Avon schools and a North Canton real-estate company, were defrauded of more than $3.4 million via ransomware deployed by Trickbot.
“The FBI relentlessly investigates criminal activity impacting the American people even when the perpetrators reside beyond our borders,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “Combating malicious cyber actors is a team sport, and we are proud of the coordinated effort that brought about this sentencing.”
“This case and subsequent sentencing sends a strong message to cybercriminals and other bad actors who target individuals and businesses with malicious intent,” said Special Agent in Charge Greg Nelsen of the FBI Cleveland Field Office. “The complexities of this case required careful coordination among our domestic and international partners and their commitment to meticulous investigative work. I am proud of the synchronized effort to see that justice was served.”
In 2021, Dunaev was extradited from the Republic of Korea to the Northern District of Ohio. On Nov. 30, 2023, Dunaev pleaded guilty to conspiracy to commit computer fraud and identity theft and conspiracy to commit wire fraud and bank fraud.
The original indictment returned in the Northern District of Ohio charged Dunaev and six other defendants for their alleged roles in developing, deploying, managing, and profiting from Trickbot.
In June, one of Dunaev’s co-conspirators, Alla Witte, who was a Trickbot malware developer and Latvian national, pleaded guilty to conspiracy to commit computer fraud and was sentenced to two years and eight months in prison.
In February and September 2023, the Treasury Department’s Office of Foreign Assets Control (OFAC) issued financial sanctions against multiple suspected Trickbot members.
The FBI Cleveland Field Office investigated the case.
Trial Attorney Candy Heath of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Duncan Brown and Daniel Riedl for the Northern District of Ohio prosecuted the case. The Justice Department’s Office of International Affairs and National Security Division, as well as the Treasury Department’s OFAC, provided significant assistance.
The Justice Department’s Office of International Affairs worked with the International Criminal Affairs Division of the South Korean Ministry of Justice to secure the arrest and extradition of Dunaev.
Former Toledo City Council Member Sentenced for ExtortionRead the Press Release
TOLEDO - U.S. Attorney Becky Lutzko announced that Garrick “Gary” Johnson, a former Toledo City Council member, was sentenced today by U.S. District Judge Jeffrey J. Helmick to 4 months. A jury previously found Johnson guilty of Hobbs Act Extortion Under Color of Official Right.
According to court documents and testimony, an FBI source paid then-Councilman Johnson $2,000 in return for his vote on a special use permit to open an internet café on Secor Road in Toledo, Ohio. Although Johnson voted in favor of it, the special use permit ultimately failed to garner the required votes.
“Councilman Johnson chose to betray those he was elected to serve by accepting a bribe, blatantly violating his oath and the public’s trust, as a result, the entire Toledo community suffered,” said United States Attorney, Becky Lutzko. “This investigation and prosecution reflects the commitment of the U.S. Attorney's Office to aggressively prosecute individuals engaged in public corruption”. “Finding and investigating public corruption is one of the FBIs highest priorities,” said FBI Cleveland Special Agent in Charge Gregory Nelsen. “Elected officials are entrusted to make virtuous decisions to the betterment of all. Sadly, Gary Johnson chose a path of criminal conduct and greed over the wellbeing of those he served. We will continue to work on behalf of the American Public to ensure the conduct by elected officials is right and just.”
This case was investigated by the Cleveland Division of the FBI, Toledo Resident Agency. This case is being prosecuted by Assistant U.S. Attorney Gene Crawford.
Toledo Man Found Guilty of Filing False Tax ReturnsRead the Press Release
TOLEDO – Lance Harris, 44, of Toledo, Ohio, was found guilty of two counts of making false claims against the United States after a two-day trial before U.S. District Court Judge James R. Knepp, II.
According to court documents and testimony, in January and February of 2020, Harris filed two tax returns with the IRS falsely claiming refunds of approximately $1.1 million dollars.
Harris will be sentenced on March 12, 2024, his sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Gene Crawford and Dexter Phillips.
Update May, 10, 2024 – Harris was sentenced to 36 months in prison on two counts of making false claims against the United States, to run concurrently and pay $55,747.27 in restitution.
Cleveland Man Sentenced to More than 16 Years for Possessing Narcotics and Being a Felon in Possession of FirearmsRead the Press Release
CLEVELAND - U.S. Attorney Rebecca C. Lutzko announced today that William Sims, 46, of Cleveland, Ohio, was sentenced to 195 months in prison by U.S. District Judge Dan Aaron Polster after a jury convicted Sims of all seven drug trafficking and firearms charges against him.
According to court documents and testimony, on November 26, 2021, after completing controlled purchases of crack cocaine from William Sims during the prior week, Cleveland Police detectives executed a search warrant on Sims’ home. During the search, detectives found Sims in possession of approximately 154.5 grams of methamphetamine, approximately 124.51 grams of crack cocaine, approximately 78.59 grams of fluorofentanyl and fentanyl, as well as numerous mixtures containing other narcotics like cocaine and heroin. The majority of the drugs were found in Sims’ bedroom, in close proximity with two loaded firearms and ammunition found under Sims’ bed. Sims is prohibited from possessing firearms due to a prior felony conviction.
The investigation preceding the indictment was conducted by Cleveland Police Department and the FBI. This case was prosecuted by Assistant U.S. Attorneys Payum Doroodian and Alejandro Abreu.
Man Pleads Guilty to Concealing War Crime Charge in CroatiaRead the Press Release
WASHINGTON – An Ohio man pleaded guilty today to possessing a green card he illegally obtained by concealing that he had been charged with a war crime in Croatia prior to emigrating to the United States.
According to court documents, Jugoslav Vidic, 55, of Parma Heights, in applying to become a lawful permanent resident of the United States, falsely stated that he had never been charged with breaking any law even though he knew he had been charged in Croatia with a war crime against the civilian population. Vidic also falsely stated that his only past military service was in the Yugoslav Army from 1988 to 1989 and omitting his service in the Serb Army of Krajina and its predecessors during the civil war in the former Yugoslavia from 1991 to 1995. As a result of these materially false statements, Vidic was approved for lawful permanent status and received a green card.
“Jugoslav Vidic knew he had been charged with a war crime, concealed that fact from U.S. immigration officials so he could enter the United States, and enjoyed lawful status in this country for nearly 20 years,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Thanks to the dedication of prosecutors, law enforcement, and our international partners, Vidic will serve prison time and then be removed from this country. His conviction demonstrates that no human rights violation is too distant for the Justice Department to seek accountability.”
“By pleading guilty, Jugoslav Vidic admitted that he lied in his application to become a lawful permanent U.S. resident, hiding the fact that he had been charged with and convicted in absentia of committing war crimes in Croatia,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “He also admitted to concealing his military service during the civil war in the former Yugoslavia, including in the specialized ‘Red Berets’ unit. Vidic tried to outrun his past, but today it caught up with him. Our country has long provided opportunities for refugees searching for a better life, but America extends that privilege with the expectation that applicants respect basic human rights and are truthful about their personal history. The Justice Department will hold accountable anyone, such as Vidic, who abuses our immigration system by trying to hide his crimes against humanity.”
Vidic was charged with a war crime in Croatia in 1994 and convicted in absentia in 1998. The Croatian court found that during an attack by ethnic Serb forces in Petrinja, Croatia, on Sept. 16, 1991, Vidic cut off the arm of civilian Stjepan Komes, who died afterward. Vidic knew about the Croatian charges when he immigrated to the United States as a refugee in 1999, applied to become a lawful permanent resident in 2000, and was interviewed by U.S. immigration officials and received his green card in 2005.
“This guilty plea underscores the importance of these complex investigations and the closure they can provide to victims’ families,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “HSI special agents, along with our law enforcement partners both here in the United States and across the globe, will continue the vital work of ensuring that war criminals like Vidic can no longer hide from justice.”
“The FBI is committed to ensuring that perpetrators of war crimes find no safe haven in the United States and are held accountable for lying and fraudulently obtaining U.S. citizen privileges,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “The FBI will continue to work alongside our domestic and international partners to pursue justice — no matter how long it takes.”
Vidic pleaded guilty to one count of possessing an alien registration receipt card knowing it had been procured through materially false statements. He is scheduled to be sentenced on May 29, 2024. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
As part of the plea agreement, Vidic agreed to the entry of a judicial order of removal from the United States. Vidic would be required to serve any sentence imposed in the United States before being removed.
HSI and the FBI are investigating the case with coordination provided by the Human Rights Violators and War Crimes Center, including the FBI’s International Human Rights Unit. The Justice Departments thanks the Ministry of the Interior and the Ministry of Justice and Public Administration of the Republic of Croatia, which were both instrumental in furthering the investigation.
Trial Attorney Patrick Jasperse of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys Matthew W. Shepherd and Jerome J. Teresinski for the Northern District of Ohio are prosecuting the case. The Justice Department’s Office of International Affairs also provided assistance.
Members of the public who have information about human rights violators in the United States are urged to contact the FBI at 1-800-CALL-FBI (800-225-5324) or through the FBI online tip form, or HSI at 1-866-DHS-2-ICE or through the ICE online tip form. All are staffed around the clock, and tips may be provided anonymously.
Man Pleads Guilty to Concealing War Crime Charge in CroatiaRead the Press Release
An Ohio man pleaded guilty today to possessing a green card he illegally obtained by concealing that he had been charged with a war crime in Croatia prior to emigrating to the United States.
According to court documents, Jugoslav Vidic, 55, of Parma Heights, in applying to become a lawful permanent resident of the United States, falsely stated that he had never been charged with breaking any law even though he knew he had been charged in Croatia with a war crime against the civilian population. Vidic also falsely stated that his only past military service was in the Yugoslav Army from 1988 to 1989 and omitting his service in the Serb Army of Krajina and its predecessors during the civil war in the former Yugoslavia from 1991 to 1995. As a result of these materially false statements, Vidic was approved for lawful permanent status and received a green card.
“Jugoslav Vidic knew he had been charged with a war crime, concealed that fact from U.S. immigration officials so he could enter the United States, and enjoyed lawful status in this country for nearly 20 years,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Thanks to the dedication of prosecutors, law enforcement, and our international partners, Vidic will serve prison time and then be removed from this country. His conviction demonstrates that no human rights violation is too distant for the Justice Department to seek accountability.”
“By pleading guilty, Jugoslav Vidic admitted that he lied in his application to become a lawful permanent U.S. resident, hiding the fact that he had been charged with and convicted in absentia of committing war crimes in Croatia,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “He also admitted to concealing his military service during the civil war in the former Yugoslavia, including in the specialized ‘Red Berets’ unit. Vidic tried to outrun his past, but today it caught up with him. Our country has long provided opportunities for refugees searching for a better life, but America extends that privilege with the expectation that applicants respect basic human rights and are truthful about their personal history. The Justice Department will hold accountable anyone, such as Vidic, who abuses our immigration system by trying to hide his crimes against humanity.”
Vidic was charged with a war crime in Croatia in 1994 and convicted in absentia in 1998. The Croatian court found that during an attack by ethnic Serb forces in Petrinja, Croatia, on Sept. 16, 1991, Vidic cut off the arm of civilian Stjepan Komes, who died afterward. Vidic knew about the Croatian charges when he immigrated to the United States as a refugee in 1999, applied to become a lawful permanent resident in 2000, and was interviewed by U.S. immigration officials and received his green card in 2005.
“This guilty plea underscores the importance of these complex investigations and the closure they can provide to victims’ families,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “HSI special agents, along with our law enforcement partners both here in the United States and across the globe, will continue the vital work of ensuring that war criminals like Vidic can no longer hide from justice.”
“The FBI is committed to ensuring that perpetrators of war crimes find no safe haven in the United States and are held accountable for lying and fraudulently obtaining U.S. citizen privileges,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “The FBI will continue to work alongside our domestic and international partners to pursue justice — no matter how long it takes.”
Vidic pleaded guilty to one count of possessing an alien registration receipt card knowing it had been procured through materially false statements. He is scheduled to be sentenced on May 29, 2024. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
As part of the plea agreement, Vidic agreed to the entry of a judicial order of removal from the United States. Vidic would be required to serve any sentence imposed in the United States before being removed.
HSI and the FBI are investigating the case with coordination provided by the Human Rights Violators and War Crimes Center, including the FBI’s International Human Rights Unit. The Justice Departments thanks the Ministry of the Interior and the Ministry of Justice and Public Administration of the Republic of Croatia, which were both instrumental in furthering the investigation.
Trial Attorney Patrick Jasperse of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys Matthew W. Shepherd and Jerome J. Teresinski for the Northern District of Ohio are prosecuting the case. The Justice Department’s Office of International Affairs also provided assistance.
Members of the public who have information about human rights violators in the United States are urged to contact the FBI at 1-800-CALL-FBI (800-225-5324) or through the FBI online tip form, or HSI at 1-866-DHS-2-ICE or through the ICE online tip form. All are staffed around the clock, and tips may be provided anonymously.
Lorain Man Sentenced to 14 Years for Possessing Methamphetamine and Being a Felon in Possession of a FirearmRead the Press Release
CLEVELAND - U.S. Attorney Rebecca C. Lutzko announced today that Brandon O. Chambers, 41, of Lorain, Ohio, was sentenced to 168 months in prison by U.S. District Judge Solomon Oliver after a jury convicted Chambers of one count of possessing methamphetamine with intent to distribute and one count of being a felon in possession of a firearm.
According to court documents and trial testimony, on October 28, 2021, Avon patrol officers stopped Chambers’ vehicle for speeding and having no license plates. Following his arrest, police found a firearm in Chambers vehicle along with approximately 218.7 grams of 99% pure methamphetamine. Chambers has multiple prior felony convictions and is therefore prohibited from possession of firearms.
The investigation preceding the indictment was conducted by Avon Police Department and the Drug Enforcement Administration. This case is prosecuted by Assistant U.S. Attorneys Payum Doroodian and Vanessa Healy.
Ohio Woman Pleads Guilty to Freedom of Access to Clinic Entrances (FACE) Act Violation for Damaging Pregnancy CenterRead the Press Release
An Ohio woman pleaded guilty today to a misdemeanor charge under the Freedom of Access to Clinic Entrances (FACE) Act, which prohibits a person from intentionally damaging or destroying the property of a facility because that facility provides reproductive health services.
According to court documents and statements made in court, on April 15, Whitney M. Durant, aka Soren Monroe, 20, of Worthington, intentionally damaged the property of HerChoice, a pregnancy center located in Bowling Green, Ohio, by defacing the clinic’s building, spray painting the words, “LIARS,” “Fund Abortion,” “Abort God,” and “Jane’s Revenge.” Durant was a Bowling Green State University student at the time of the incident.
“Defacing facilities that provide reproductive health services will not be tolerated in our society,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to enforcing the FACE Act to protect all patients who seek reproductive health services and all persons and facilities that provide such services.”
“As reflected by today’s guilty plea, the United States will enforce federal laws that protect uninterrupted access to all clinics providing reproductive health services, whether they provide women with options that include abortion care or whether they solely encourage women to consider non-abortion alternatives,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. “Here, the vandalized clinic did not provide abortion care, but that did not give the defendant license to deface the clinic’s property in protest, violating federal law in the process.”
“The First Amendment provides a constitutional right to peacefully protest, but Ms. Durant’s actions of defacing a reproductive health care center crossed a line,” said Special Agent in Charge Greg Nelsen of the FBI Cleveland Field Office. “The FBI and our partners will continue to aggressively investigate FACE Act violations and protect every American’s access to reproductive health care services.”
A sentencing hearing will be scheduled for April 9, 2024. Durant faces a maximum penalty of one year in prison for the misdemeanor charge. A federal Magistrate Judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Cleveland Field Office, Toledo Resident Agency and Bowling Green Police Department investigated the case.
Assistant U.S. Attorney Angelita Cruz Bridges and Wood County Prosecutor and Special Assistant U.S. Attorney Paul Dobson for the Northern District of Ohio are prosecuting the case.
Anyone who has information about incidents of violence, threats and obstruction that target a patient or provider of reproductive health services or damage and destruction of reproductive health care facilities, should report that information to the FBI at https://tips.fbi.gov/.
Ohio Woman Pleads Guilty to Freedom of Access to Clinic Entrances (FACE) Act Violation for Damaging Pregnancy CenterRead the Press Release
An Ohio woman pleaded guilty today to a misdemeanor charge under the Freedom of Access to Clinic Entrances (FACE) Act, which prohibits a person from intentionally damaging or destroying the property of a facility because that facility provides reproductive health services.
According to court documents and statements made in court, on April 15, Whitney M. Durant, aka Soren Monroe, 20, of Worthington, intentionally damaged the property of HerChoice, a pregnancy center located in Bowling Green, Ohio, by defacing the clinic’s building, spray painting the words, “LIARS,” “Fund Abortion,” “Abort God,” and “Jane’s Revenge.” Durant was a Bowling Green State University student at the time of the incident.
“Defacing facilities that provide reproductive health services will not be tolerated in our society,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to enforcing the FACE Act to protect all patients who seek reproductive health services and all persons and facilities that provide such services.”
“As reflected by today’s guilty plea, the United States will enforce federal laws that protect uninterrupted access to all clinics providing reproductive health services, whether they provide women with options that include abortion care or whether they solely encourage women to consider non-abortion alternatives,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. “Here, the vandalized clinic did not provide abortion care, but that did not give the defendant license to deface the clinic’s property in protest, violating federal law in the process.”
“The First Amendment provides a constitutional right to peacefully protest, but Ms. Durant’s actions of defacing a reproductive health care center crossed a line,” said Special Agent in Charge Greg Nelsen of the FBI Cleveland Field Office. “The FBI and our partners will continue to aggressively investigate FACE Act violations and protect every American’s access to reproductive health care services.”
A sentencing hearing will be scheduled for April 9, 2024. Durant faces a maximum penalty of one year in prison for the misdemeanor charge. A federal Magistrate Judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Cleveland Field Office, Toledo Resident Agency and Bowling Green Police Department investigated the case.
Assistant U.S. Attorney Angelita Cruz Bridges and Wood County Prosecutor and Special Assistant U.S. Attorney Paul Dobson for the Northern District of Ohio are prosecuting the case.
Anyone who has information about incidents of violence, threats and obstruction that target a patient or provider of reproductive health services or damage and destruction of reproductive health care facilities, should report that information to the FBI at www.tips.fbi.gov.
For more information about clinic violence, and the Justice Department ’s efforts to enforce FACE Act violations, please visit www.justice.gov/crt/national-task-force-violence-against-reproductive-health-care-providers.
Cleveland Man Sentenced to more than 39 Years for Selling Cocaine and Fentanyl that Caused an Overdose DeathRead the Press Release
CLEVELAND - U.S. Attorney Rebecca C. Lutzko announced that Willie Pratt, 35, of Cleveland, Ohio, was sentenced to 470 months in prison by U.S. District Judge John R. Adams after a jury earlier convicted Pratt of distributing cocaine and fentanyl that caused the death of a 42-year-old North Olmstead, Ohio resident.
According to court documents and trial testimony, on October 30, 2021, Pratt sold the victim cocaine and heroin, which was actually fentanyl. This transaction was witnessed by the victim’s friend. The victim consumed the narcotics which caused the victim’s death in Rocky River, Ohio. Authorities used the victim’s phone to identify and arrest Pratt through setting up a controlled purchase of the same narcotics. When Pratt was arrested, he had cocaine and fentanyl in his possession, as well a phone which the victim called to purchase narcotics from Pratt. In addition, Pratt was wearing a GPS ankle monitor, which confirmed that Pratt was at the location of the fatal distribution on October 30, 2021.
The investigation preceding the indictment was conducted by the Rocky River Police Department and DEA. This case was prosecuted by Assistant U.S. Attorneys Payum Doroodian and Yasmine Makridis.
Cleveland Man Sentenced to 20 Years for Possession with Intent to Distribute Narcotics and Illegal Possession of FirearmsRead the Press Release
CLEVELAND - U.S. Attorney Rebecca C. Lutzko announced that David Powell, 67, of Cleveland, Ohio, was sentenced to 240 months in prison by U.S. District Judge Patricia A. Gaughan after earlier pleading guilty to possession with the intent to distribute fentanyl, cocaine, heroin, and methamphetamine, being a felon in possession of a firearm, and possession of firearms in furtherance of a drug trafficking crime.
According to court documents, on October 5, 2021, detectives executed multiple search warrants on residences associated with Powell, where they uncovered several kilograms of narcotics and firearms. Powell was incarcerated for a parole violation before returning to the community. Then on October 25, 2022, detectives executed another search warrant on Powell’s residence which resulted in the seizure of three kilograms of narcotics and a firearm. Powell has prior felony convictions, including a 1980 murder conviction in Cuyahoga County Common Pleas Court, which prohibited him from possession of a firearm.
The investigation preceding the indictment was conducted by the Southeast Area Law Enforcement Narcotics Task Force and the FBI. This case was prosecuted by Assistant U.S. Attorney Payum Doroodian.
Russian National Pleads Guilty to Trickbot Malware ConspiracyRead the Press Release
A Russian national pleaded guilty today to his role in developing and deploying the malicious software known as Trickbot, which was used to launch cyber-attacks against American hospitals and other businesses.
According to court documents and public reporting, Vladimir Dunaev, 40, of Amur Blast, provided specialized services and technical abilities in furtherance of the Trickbot scheme. Trickbot, which was taken down in 2022, was a suite of malware tools designed to steal money and facilitate the installation of ransomware. Hospitals, schools, and businesses were among the millions of Trickbot victims who suffered tens of millions of dollars in losses. While active, Trickbot malware, which acted as an initial intrusion vector into victim computer systems, was used to support various ransomware variants.
“Dunaev’s guilty plea and our collaboration with South Korea that made his extradition possible are a prime example of what we can accomplish together with our foreign partners,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Cybercriminals should know that countries around the world stand ready to bring them to justice and hold them accountable for their crimes.”
Dunaev developed browser modifications and malicious tools that aided in credential harvesting and data mining from infected computers, facilitated and enhanced the remote access used by Trickbot actors, and created a program code to prevent the Trickbot malware from being detected by legitimate security software. During Dunaev’s participation in the scheme, 10 victims in the Northern District of Ohio, including Avon schools and a North Canton real-estate company, were defrauded of more than $3.4 million via ransomware deployed by Trickbot.
“As set forth in the plea agreement, Vladimir Dunaev misused his special skills as a computer programmer to develop the Trickbot suite of malware,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Dunaev and his codefendants hid behind their keyboards, first to create Trickbot, then using it to infect millions of computers worldwide — including those used by hospitals, schools, and businesses — invading privacy and causing untold disruption and financial damage. The Justice Department and our office have prioritized investigating and prosecuting cybercrime, and today’s guilty plea demonstrates our willingness to reach across the globe to bring cybercriminals to justice. We will continue to work closely with our partners, foreign and domestic, and use all resources at our disposal to stop similar behavior.”
“Combating bad actors in cyberspace is a team sport, and we are proud of the collaboration and coordination at the international level that went into today’s plea,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “The FBI will pursue criminals who target the American people with malware no matter where they reside.”
“As the world of technology is ever-changing, cybercrime continues to evolve. This case underscores the FBI’s relentless pursuit of cyber criminals and highlights our expertise to find and dismantle criminal networks,” said Special Agent in Charge Gregory Nelsen of the FBI Cleveland Field Office. “We appreciate the coordinated work among our public and private sector global colleagues together with our federal, state, and local law enforcement partners to further protect the public from destructive malware.”
In 2021, Dunaev was extradited from the Republic of Korea to the Northern District of Ohio.
Dunaev pleaded guilty to conspiracy to commit computer fraud and identity theft and conspiracy to commit wire fraud and bank fraud. He is scheduled to be sentenced on March 20, 2024, and faces a maximum penalty of 35 years in prison on both counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The original indictment returned in the Northern District of Ohio charged Dunaev and eight other defendants for their alleged roles in developing, deploying, managing, and profiting from Trickbot.
In June, one of Dunaev’s co-conspirators, Alla Witte, who was a Trickbot malware developer and Latvian national, pleaded guilty to conspiracy to commit computer fraud and was sentenced to two years and eight months in prison.
In February and September, the Treasury Department’s Office of Foreign Assets Control (OFAC) issued financial sanctions against multiple suspected Trickbot members.
The FBI Cleveland Field Office is investigating the case.
Trial Attorney Candy Heath of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Duncan Brown and Daniel Riedl for the Northern District of Ohio are prosecuting the case. The Justice Department’s Office of International Affairs and National Security Division, as well as the Treasury Department’s OFAC, provided significant assistance.
The Justice Department’s Office of International Affairs worked with the International Criminal Affairs Division of the South Korean Ministry of Justice to secure the arrest and extradition of Dunaev.
Russian National Pleads Guilty to Trickbot Malware ConspiracyRead the Press Release
A Russian national pleaded guilty today to his role in developing and deploying the malicious software known as Trickbot, which was used to launch cyber-attacks against American hospitals and other businesses.
According to court documents and public reporting, Vladimir Dunaev, 40, of Amur Blast, provided specialized services and technical abilities in furtherance of the Trickbot scheme. Trickbot, which was taken down in 2022, was a suite of malware tools designed to steal money and facilitate the installation of ransomware. Hospitals, schools, and businesses were among the millions of Trickbot victims who suffered tens of millions of dollars in losses. While active, Trickbot malware, which acted as an initial intrusion vector into victim computer systems, was used to support various ransomware variants.
“Dunaev’s guilty plea and our collaboration with South Korea that made his extradition possible are a prime example of what we can accomplish together with our foreign partners,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Cybercriminals should know that countries around the world stand ready to bring them to justice and hold them accountable for their crimes.”
Dunaev developed browser modifications and malicious tools that aided in credential harvesting and datamining from infected computers, facilitated and enhanced the remote access used by Trickbot actors, and created a program code to prevent the Trickbot malware from being detected by legitimate security software. During Dunaev’s participation in the scheme, 10 victims in the Northern District of Ohio, including Avon schools and a North Canton real-estate company, were defrauded of more than $3.4 million via ransomware deployed by Trickbot.
“As set forth in the plea agreement, Vladimir Dunaev misused his special skills as a computer programmer to develop the Trickbot suite of malware,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Dunaev and his codefendants hid behind their keyboards, first to create Trickbot, then using it to infect millions of computers worldwide — including those used by hospitals, schools, and businesses — invading privacy and causing untold disruption and financial damage. The Justice Department and our office have prioritized investigating and prosecuting cybercrime, and today’s guilty plea demonstrates our willingness to reach across the globe to bring cybercriminals to justice. We will continue to work closely with our partners, foreign and domestic, and use all resources at our disposal to stop similar behavior.”
“Combating bad actors in cyberspace is a team sport, and we are proud of the collaboration and coordination at the international level that went into today’s plea,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “The FBI will pursue criminals who target the American people with malware no matter where they reside.”
“As the world of technology is ever-changing, cybercrime continues to evolve. This case underscores the FBI’s relentless pursuit of cyber criminals and highlights our expertise to find and dismantle criminal networks,” said Special Agent in Charge Gregory Nelsen of the FBI Cleveland Field Office. “We appreciate the coordinated work among our public and private sector global colleagues together with our federal, state, and local law enforcement partners to further protect the public from destructive malware.”
In 2021, Dunaev was extradited from the Republic of Korea to the Northern District of Ohio.
Dunaev pleaded guilty to conspiracy to commit computer fraud and identity theft and conspiracy to commit wire fraud and bank fraud. He is scheduled to be sentenced on March 20, 2024, and faces a maximum penalty of 35 years in prison on both counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The original indictment returned in the Northern District of Ohio charged Dunaev and eight other defendants for their alleged roles in developing, deploying, managing, and profiting from Trickbot.
In June, one of Dunaev’s co-conspirators, Alla Witte, who was a Trickbot malware developer and Latvian national, pleaded guilty to conspiracy to commit computer fraud and was sentenced to two years and eight months in prison.
In February and September, the Treasury Department’s Office of Foreign Assets Control (OFAC) issued financial sanctions against multiple suspected Trickbot members.
The FBI Cleveland Field Office is investigating the case.
Trial Attorney Candy Heath of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Duncan Brown and Daniel Riedl for the Northern District of Ohio are prosecuting the case. The Justice Department’s Office of International Affairs and National Security Division, as well as the Treasury Department’s OFAC, provided significant assistance.
The Justice Department’s Office of International Affairs worked with the International Criminal Affairs Division of the South Korean Ministry of Justice to secure the arrest and extradition of Dunaev.
Priest Sentenced to Life in Prison for Sex Trafficking Three Victims in Northern OhioRead the Press Release
A priest was sentenced today to life in prison for sex trafficking in northern Ohio.
A federal jury in Toledo, Ohio, previously found defendant Michael Zacharias, 56, guilty of five counts of sex trafficking following a two-week trial in May. Evidence presented at trial showed that Zacharias met the victims through his affiliation with a Catholic school. The evidence showed that he used his affiliation and position of authority to groom the boys and grow close with their families before ultimately coercing the victims into engaging in commercial sex acts and manipulating the opioid addictions they developed.
“Michael Zacharias used his position as a trusted spiritual leader and role model for young boys and their families to exploit them in the most insidious ways, coercing his victims from childhood and beyond to engage in commercial sex with him,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence sends a very clear message that those who abuse their positions of power and authority to sexually assault and exploit children will be held accountable. The Justice Department stands ready to fully enforce our federal human trafficking statutes while seeking justice for the survivors of these treacherous crimes.”
“Michael Zacharias’ victims trusted him, as a spiritual advisor, a confidant, a community leader and someone in a position of authority. He exploited his position and that trust to target and victimize young boys and their families, causing lasting damage to both,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Zacharias was held accountable because of the courageous testimony of these young men, who gave voice to his betrayal and abuse, relieved this unimaginable horror and withstood Zacharias’ predictable attempts at trial to attack their veracity. I applaud the bravery of these young men, the people who supported them and the dogged efforts of the assigned FBI agent, who together exposed this predator, masquerading as a man of faith. Although no amount of time can ever wholly repair the damage that Zacharias inflicted on his victims, the life sentence that he received today is a significant step toward finding justice and protecting our community. It sends a message to others who consider similar conduct that the U.S. Attorney’s Office will aggressively pursue charges against those who target our children.”
“For more than two decades, Michael Zacharias used his position as a priest to groom and abuse young boys,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Zacharias met his victims when they were as young as five and began exploiting them for commercial sex acts and enabling their resulting opioid addictions. We are profoundly thankful to the victims and families who reported Zacharias and helped the FBI and our partners put an end to further abuse.”
“Using a position of trust while deviously preying on one’s vulnerabilities, especially juveniles, is reprehensible,” said Special Agent in Charge Greg Nelsen of the FBI Cleveland Field Office. “The FBI has zero tolerance for sexual predators and those who commit crimes against children. We will continue to find and investigate individuals and their network who exploit and traffic children and seek justice for the victims and their families.”
Evidence presented at trial, including the testimony of victims and family members, established that the defendant met the victims when they were minor parochial school students through his affiliation with their school. The evidence showed that the defendant served as a respected member of the clergy for more than 20 years, while exploiting his victims over extended periods as they developed opioid addictions and criminal records.
According to testimony and other evidence presented at trial, including financial and phone records, the defendant manipulated the victims’ fears of opioid withdrawal and homelessness to exploit them for commercial sex acts he directed them to perform in exchange for money.
The FBI Cleveland Field Office, Lima and Toledo Resident Agencies investigated the case.
Assistant U.S. Attorney Tracey Tangeman for the Northern District of Ohio and Trial Attorney Lindsey Roberson of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Former Priest Sentenced to Life in Prison for Sex Trafficking Three Victims in Northern OhioRead the Press Release
TOLEDO – Michael Zacharias, 56, of Findlay, Ohio was sentenced to life in prison today by U.S. District Judge Jack Zouhary and ordered to serve 5 years of supervised release, pay a $500 special assessment and pay $25,000 pursuant to the Justice for Victims of Trafficking Act. Zacharias was previously found guilty after a jury trial of five counts of sex trafficking following a two-week trial in May 2023.
Evidence presented at trial showed that Zacharias was a priest-in-training when he first met the three victims at a Catholic school in Toledo in 1999. The evidence showed that he used his position of authority as a spiritual leader to groom the boys and grow close with their families before ultimately coercing the victims into engaging in commercial sex acts, two of which were still minors but all three of which he victimized in their adulthood, by exploiting their opioid addictions to cope with the trauma of the abuse.
“Michael Zacharias’s victims trusted him, as a spiritual advisor, a confidant, a community leader, and someone in a position of authority. He exploited his position and that trust to target and victimize young boys and their families, causing lasting damage to both,” said United States Attorney Rebecca C. Lutzko. “Zacharias was held accountable because of the courageous testimony of these young men, who gave voice to his betrayal and abuse, relieved this unimaginable horror, and withstood Zacharias’s predictable attempts at trial to attack their veracity. I applaud the bravery of these young men, the people who supported them, and the dogged efforts of the assigned FBI agent, who together exposed this predator, masquerading as a man of faith. Although no amount of time can ever wholly repair the damage that Zacharias inflicted on his victims, the life sentence that he received today is a significant step toward finding justice and protecting our community. It sends a message to others who consider similar conduct that the United States Attorney’s Office will aggressively pursue charges against those who target our children.”“Using a position of trust while deviously preying on one’s vulnerabilities, especially juveniles, is reprehensible,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “The FBI has zero tolerance for sexual predators and those who commit crimes against children. We will continue to find and investigate individuals and their network who exploit and traffic children and seek justice for the victims and their families.”
Evidence presented at trial, including the testimony of the three victims and family members, established that Zacharias first met the victims when they were just 5-, 11-, and 13-year-old students at a parochial school in Toledo in 1999. Zacharias served as a respected Catholic priest in Northwest Ohio for more than 20 years, while secretly exploiting his victims as they struggled in school, fell into opioid addiction, developed criminal histories, and became even more financially dependent on him to avoid opioid withdrawal and homelessness. Zacharias’ betrayal of the victims’ trust caused them serious psychological harm.
Instead of helping the victims or providing referrals for their needs, Zacharias exploited them for his own pleasure. Zacharias preyed on the victims' ongoing fear of the painful physical symptoms of opioid withdrawal they would suffer without money he paid them, which sustained their growing addictions. Financial and phone records showed that when one of the victims was unavailable due to drug rehabilitation or incarceration, Zacharias incessantly solicited the other victims for commercial sex acts, including the youngest brother of his first victim, who was a freshman in high school and already struggling with opioid addiction when Zacharias began abusing him for sex.
The FBI Cleveland Field Office, Lima and Toledo Resident Agencies investigated the case.Assistant U.S. Attorney Tracey Ballard Tangeman for the Northern District of Ohio and Trial Attorney Lindsey Roberson of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Delta Man Sentenced to 14 Years Imprisonment for Receiving Child PornographyRead the Press Release
TOLEDO – Kyle Brackman, 29, of Delta, Ohio was sentenced to 168 months imprisonment by U.S. District Judge Jeffrey J. Helmick after earlier pleading guilty to Receipt of Child Pornography. Judge Helmick also ordered Brackman to serve a 15-year term of supervised release upon release from imprisonment.
According to court documents, the case came to the attention of law enforcement after a high school principal in Iowa contacted local police in 2017 after learning a 15-year-old student was communicating with Brackman and the messages were sexual in nature. It was later determined that Brackman had received sexually explicit material from the Iowa minor.
Brackman was arrested on July 28, 2019, after officers responded to reports of a male making sexually suggestive remarks and gestures to a 10-year-old and 13-year-old, according to court documents.
This case was investigated by the FBI and prosecuted by Assistant United States Attorneys Tracey Ballard Tangeman and Frank Spryszak.
Eleven Individuals Involved in International Drug Trafficking and Money Laundering Organization IndictedRead the Press Release
CLEVELAND – Federal, state, local, and international law enforcement officials today announced that 11 individuals were charged for their roles in an international drug trafficking conspiracy that involved the importation of fentanyl, synthetic opioids, and synthetic cannabinoids into the United States, and the distribution of those drugs in Ohio, Pennsylvania, Kentucky, Tennessee, and elsewhere domestically. Several charged defendants were arrested earlier this morning and transported to federal court in Cleveland, while the others are in custody elsewhere, including Italy.
This announcement is made by United States Attorney Rebecca C. Lutzko, DEA Special Agent in Charge Orville Greene, and Ohio Director of Public Safety Andy Wilson.
“From the confines of the Ohio Penitentiary, Brian Lumbus led an international and interstate drug trafficking organization that brought fentanyl and other, more potent synthetic drugs from overseas factories to the streets of our region,” said United States Attorney Rebecca C. Lutzko. “Several others, both in the United States and outside it, acted in concert with Lumbus to do what he physically could not: obtain, assemble, and repackage those drugs, then mail or deliver them to other conspirators for further distribution. As this indictment reflects, the United States Attorney’s Office will continue its collaborative efforts with federal, state, local, and international partners to identify, target, and dismantle drug trafficking organizations, whether the suppliers of such poisons are in the Northern District of Ohio or a continent away. I thank our partners at DEA, the Ohio Department of Public Safety, and the Italian government for their tireless efforts to identify and apprehend significant players in the illegal drug trade.”
“As alleged in today’s indictment, the defendants orchestrated an international conspiracy to peddle fentanyl and other deadly drugs across the Ohio Valley, with complete disregard for the lives of their victims,” said Deputy Attorney General Lisa O. Monaco. “Alongside our law enforcement partners across the country and around the world, the Justice Department will relentlessly pursue all those who seek to profit from poisoning Americans—including when they try to exploit international boundaries and digital currencies to disguise their illicit trade.”
“Brian Lumbus led an elaborate drug trafficking network that imported dangerous synthetic drugs and other substances from foreign-based suppliers to then distribute to customers throughout the region” said DEA Special Agent in Charge Orville Greene. “The outstanding assistance and support DEA received from our foreign and domestic counterparts led to the successful apprehension of Lumbus and his co-conspirators. Today’s actions send a clear message that law enforcement will work locally, and even across international borders, to seek justice against criminal organizations."
“Governor Mike DeWine and the Ohio Department of Public Safety are extremely proud of the work done by the investigative team in this case,” said Director Andy Wilson, “This investigation is an excellent example of the great work that can be done when you have seamless cooperation between state, federal and international partners. The work done by this investigative team will truly make Ohio a safer place for our friends, our families, and our children.”
The following defendants are charged in the 34-count indictment:
- Brian Lumbus, Jr., AKA B, 43, of Cleveland, Ohio,
- Giancarlo Miserotti, AKA Karl, 51, of Italy,
- Brianna Lumbus, 22, of Cleveland, Ohio,
- Kayla S. Goudlock, 25, of North Royalton, Ohio,
- Jennifer Robinson, 38, of Tennessee,
- Latasha Harris, 40, of Toledo, Ohio,
- Dominique Hammond, 37, of Pittsburgh, Pennsylvania,
- Wanda Ward, 46, of Johnson City, Tennessee,
- Marchello Lumbus, AKA Chello, 42, of Cleveland, Ohio,
- Jessica Cochran, 28, of Lorain, Ohio,
- Braisia Lumbus, 23, of Cleveland, Ohio.
The defendants were all charged in a conspiracy to distribute and possess with intent to distribute controlled substances. Additionally, six defendants were charged with substantive possession with intent to distribute controlled substances offenses. Nine defendants were charged with interstate travel in aid of racketeering, and eight were charged in an international money laundering conspiracy. Finally, nine of the defendants were charged with using a communications facility to facilitate a felony drug offense.
According to the indictment, between as early as April 28, 2016, and continuing through November 1, 2023, the defendants did knowingly and intentionally conspire with each other to distribute and possess with the intention to distribute mixtures and substances containing fentanyl, a Schedule II controlled substance; as well as Isotonitazene, Metonitazene, Alpha-PiHP, and ADB-BUTINACA, all Schedule I synthetic opioid or cannabinoid controlled substances.
While incarcerated in an Ohio state prison, Brian Lumbus, Jr., orchestrated the operation, ordering significant quantities of these drugs from Giancarlo Miserotti, an Italian citizen and resident. Miserotti arranged for kilogram quantities of these controlled substances to be exported from several foreign countries first to Italy, then to the United States, for redistribution by conspiracy members. Investigators with the Ohio Department of Rehabilitation and Correction discovered evidence of the criminal activity of this group in the institution and they immediately alerted the Ohio State Highway Patrol and the DEA for further investigation. It was determined that U.S.-based conspirators received the foreign shipments, cut and mixed the drugs, and redistributed them. Other members of the conspiracy used Bitcoin cryptocurrency to pay Miserotti for the drugs.
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.
If convicted, each defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The investigation preceding the indictments was conducted by the DEA, and the Ohio State Highway Patrol and the Ohio Department of Rehabilitation and Correction.
This case is being prosecuted by Assistant U.S. Attorneys Colleen Egan and Robert J. Kolansky. The Justice Department’s Office of International Affairs provided substantial assistance.
Eleven Individuals Involved in International Drug Trafficking and Money Laundering Organization IndictedRead the Press Release
Federal, state, local, and Italian law enforcement officials today announced that 11 individuals were charged for their roles in an international drug trafficking conspiracy that involved the importation of fentanyl, synthetic opioids, and synthetic cannabinoids into the United States, and the distribution of those drugs in Ohio, Pennsylvania, Kentucky, Tennessee, and elsewhere domestically. Several charged defendants were arrested earlier this morning and transported to federal court in Cleveland, while the others are in custody elsewhere, including Italy.
“As alleged in today’s indictment, the defendants orchestrated an international conspiracy to peddle fentanyl and other deadly drugs across the Ohio Valley, with complete disregard for the lives of their victims,” said Deputy Attorney General Lisa O. Monaco. “Alongside our law enforcement partners across the country and around the world, the Justice Department will relentlessly pursue all those who seek to profit from poisoning Americans – including when they try to exploit international boundaries and digital currencies to disguise their illicit trade.”
“From the confines of the Ohio Penitentiary, Brian Lumbus led an international and interstate drug trafficking organization that brought fentanyl and other, more potent synthetic drugs from overseas factories to the streets of our region,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Several others, both in the United States and outside it, acted in concert with Lumbus to do what he physically could not: obtain, assemble, and repackage those drugs, then mail or deliver them to other conspirators for further distribution. As this indictment reflects, the U.S. Attorney’s Office will continue its collaborative efforts with federal, state, local, and international partners to identify, target, and dismantle drug trafficking organizations, whether the suppliers of such poisons are in the Northern District of Ohio or a continent away. I thank our partners at the Drug Enforcement Administration (DEA), the Ohio Department of Public Safety, and the Italian government for their tireless efforts to identify and apprehend significant players in the illegal drug trade.”
“Brian Lumbus led an elaborate drug trafficking network that imported dangerous synthetic drugs and other substances from foreign-based suppliers to then distribute to customers throughout the region,” said Special Agent in Charge Orville Greene of the DEA Detroit Field Division. “The outstanding assistance and support DEA received from our foreign and domestic counterparts led to the successful apprehension of Lumbus and his co-conspirators. Today’s actions send a clear message that law enforcement will work locally, and even across international borders, to seek justice against criminal organizations."
The following defendants are charged in the 34-count indictment:
- Brian Lumbus Jr., aka B, 43, of Cleveland;
- Giancarlo Miserotti, aka Karl, 51, of Italy;
- Brianna Lumbus, 22, of Cleveland;
- Kayla S. Goudlock, 25, of North Royalton, Ohio;
- Jennifer Robinson, 38, of Tennessee;
- Latasha Harris, 40, of Toledo, Ohio;
- Dominique Hammond, 37, of Pittsburgh;
- Wanda Ward, 46, of Johnson City, Tennessee;
- Marchello Lumbus, aka Chello, 42, of Cleveland;
- Jessica Cochran, 28, of Lorain, Ohio; and
- Braisia Lumbus, 23, of Cleveland.
The defendants were all charged in a conspiracy to distribute and possess with intent to distribute controlled substances. Additionally, six defendants were charged with substantive possession with intent to distribute controlled substances offenses. Nine defendants were charged with interstate travel in aid of racketeering, and eight were charged in an international money laundering conspiracy. Finally, nine of the defendants were charged with using a communications facility to facilitate a felony drug offense.
According to the indictment, between as early as April 28, 2016, and continuing through Nov. 1 of this year, the defendants did knowingly and intentionally conspire with each other to distribute and possess with the intention to distribute mixtures and substances containing fentanyl, a Schedule II controlled substance; as well as Isotonitazene, Metonitazene, Alpha-PiHP, and ADB-BUTINACA, all Schedule I synthetic opioid or cannabinoid controlled substances.
While incarcerated in an Ohio state prison, Brian Lumbus Jr. orchestrated the operation, ordering significant quantities of these drugs from Giancarlo Miserotti, an Italian citizen and resident. Miserotti arranged for kilogram quantities of these controlled substances to be exported from several foreign countries first to Italy, then to the United States, for redistribution by conspiracy members. Investigators with the Ohio Department of Rehabilitation and Correction discovered evidence of the criminal activity of this group in the institution and they immediately alerted the Ohio State Highway Patrol and the DEA for further investigation. It was determined that U.S.-based conspirators received the foreign shipments, cut and mixed the drugs, and redistributed them. Other members of the conspiracy used Bitcoin cryptocurrency to pay Miserotti for the drugs.
If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The DEA, Ohio State Highway Patrol, and Ohio Department of Rehabilitation and Correction investigated the case.
Assistant U.S. Attorneys Colleen Egan and Robert J. Kolansky for the Northern District of Ohio are prosecuting the case. The Justice Department’s Office of International Affairs provided substantial assistance.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Toledo Man Found Guilty of Receipt and Distribution of Child PornographyRead the Press Release
TOLEDO – Christopher Frater, 46, of Toledo, Ohio, was found guilty of one count of receipt and distribution of visual depictions of minors engaged in sexually explicit conduct after a four-day trial by jury before U.S. District Court Judge Jeffrey Helmick.
According to court documents and testimony, in 2017, an undercover investigator downloaded files of child pornography from an IP address assigned to the defendant at his then residence in Lima, Ohio. In January 2018, the FBI executed a search warrant at the defendant’s residence and seized his computer and cell phone. A forensic review of the electronics revealed that the defendant was utilizing peer-to-peer (P2P) file sharing programs to receive and distribute child pornography to include 150 images of children under the age of 12 and at least three videos.
Frater, a former Allen County, Ohio Corrections Officer, will be sentenced on March 12, 2024 when he faces a mandatory minimum sentence of five years in prison, although his sentence will be determined by many factors and may be higher than the mandatory minimum. The judge will determine the appropriate sentence after considering the sentencing guidelines and other factors.
This case was investigated by the FBI, Toledo and prosecuted by Assistant U.S. Attorneys Sara Al-Sorghali and Tracey Tangeman.
Cleveland Man Sentenced to More Than 27 Years in Prison for Drug TraffickingRead the Press Release
AKRON – Ramel Drew, age 45, of Cleveland, Ohio, was sentenced to 327 months (more than 27 years) in prison by U.S. District Judge John R. Adams. In March 2023, a jury convicted Drew of one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl, one count of possession with intent to distribute 400 grams or more of fentanyl, one count of distribution of fentanyl, and one count of use of a communications facility in furtherance of a drug trafficking crime. Judge Adams also ordered Drew to pay a $400 special assessment and to serve a term of supervised release to follow his term of incarceration.
According to court documents and evidence presented at trial, the FBI and other law enforcement partners conducted a long- term investigation and determined that members of the conspiracy were selling fentanyl to customers at multiple locations in Cleveland, and that Ramel Drew was involved in the drug trafficking conspiracy.
On August 31, 2021, the FBI and other law enforcement agencies executed search warrants at seven houses connected to the drug organization, and seized over a kilogram of fentanyl, numerous firearms, ammunition, high-speed money counters, drug presses, a vacuum-sealer used to package drugs and money, over $68,000 in cash, jewelry, and multiple high-end vehicles, including two Range Rovers and a Jaguar.
One of the houses searched was on East 89th Street in Cleveland, which the FBI had identified as a location where customers came from as far away as Lorain County and Ashland County to buy fentanyl. Video evidence revealed Ramel Drew and other conspirators were selling drugs to customers in the driveway of a residence. Testimony at trial also established that Drew and his coconspirators shared a cell phone that drug customers would call to arrange the drug purchases.
Drew was one of 24 defendants indicted in the case, which was the result of a coordinated effort by the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). All 24 defendants, including Drew, were convicted.
The case was investigated by the FBI’s Cartel, Gang, Narcotics, and Laundering Task Force (CGNL) and IRS Criminal Investigation, with assistance from the Cleveland Division of Police, the Cuyahoga County Sheriff’s Office, the Ohio Investigative Unit, the Ohio State Highway Patrol, the Cleveland Heights Police Department, the Southeast Area Law Enforcement Task Force (SEALE), the ATF, the U.S. Marshals Service, the DEA, and the Cuyahoga County Regional Forensic Science Laboratory.
The case was prosecuted by Assistant U.S. Attorneys James Lewis, Joseph Dangelo, and James Morford.
Michigan Man Sentenced to Prison for Check-Kiting Scheme that Caused Loss of Nearly $150 MillionRead the Press Release
CLEVELAND –Najeeb Khan, 70, of Edwardsburg, Michigan was sentenced to 97 months imprisonment by U.S. District Court Judge Pamela A. Barker after earlier pleading guilty to bank fraud and attempted tax evasion. Judge Barker also ordered Khan to pay over $150,000,000 in restitution to the victims of his bank fraud and the IRS, and to serve 3 years of supervised release once released from prison.
According to court documents, Khan owned and operated Interlogic Outsourcing Inc. (“IOI”), a payroll processing company that, at one point, provided services to approximately 6,000 clients.
Beginning in 2014, however, Khan operated a check-kiting scheme using his company’s business bank accounts to fraudulently obtain funds from various financial institutions, including KeyBank. Khan used these funds to support the growth of his payroll processing business and fund his lifestyle, which included the purchase of automobiles, aircraft, and vacation homes.
As part of his scheme, Khan wrote checks and made wire transfers between multiple accounts under his control at various banks. This type of fraud is commonly known as check-kiting, and it involves the perpetrator continually writing checks back and forth between accounts he or she controls to fraudulently inflate account balances, thus deceiving banks into honoring checks written with insufficient funds.
Khan wrote checks from IOI accounts at Lake City Bank for deposit into IOI accounts at KeyBank and then wrote checks from IOI accounts at Berkshire Bank for deposit into IOI accounts at Lake City Bank. To cover the check funds issued from Berkshire Bank, Khan wired funds from IOI accounts at KeyBank to IOI accounts at Berkshire Bank.
This long-running check-kiting scheme caused a financial loss of nearly $150 million to businesses around the country and to KeyBank in the Northern District of Ohio. Khan also failed to report income gained from the check-kiting scheme on his annual tax return for the tax years 2014 to 2017.
“This defendant essentially gave himself a $150,000,000 loan, spent money however he wanted on himself and his business, then defaulted, all without ever getting the banks’ approval to give him that loan,” said U.S. Attorney Rebecca C. Lutzko. “These types of financial crimes undermine the well-being of our financial institutions and harm our entire community. This office will vigilantly investigate and prosecute persons who engage in such conduct to protect and prevent harm to financial institutions locally and nationwide.”
“Financial crimes can have serious and long-term consequences. Complex financial crimes that impact the economic well-being of institutions is reprehensible,” said FBI Cleveland Special Agent in Charge Gregory Nelsen. “The defendant orchestrated an elaborate business fraud scheme that caused extensive monetary harm to financial institutions nationwide. The FBI will work diligently and seek justice for individuals and entities who fall victim to conniving criminals who cheat and lie for the sole purpose of personal gain.”
This case was investigated by the Cleveland FBI and IRS Criminal Investigations (“CI”). This case was prosecuted by Assistant U.S. Attorneys Chelsea S. Rice and Alejandro A. Abreu.
Justice Department Announces New Nationwide Public Safety CommitmentsRead the Press Release
The Justice Department announced today several new commitments as part of its Comprehensive Strategy for Reducing Violent Crime. Instituted by Attorney General Merrick B. Garland in May 2021, the strategy focuses on harnessing federal resources, intelligence, and expertise as a force-multiplier with state, local, and Tribal law enforcement.
Deputy Attorney General Lisa O. Monaco and Associate Attorney General Vanita Gupta highlighted the more than $334 million in critical grant funding to law enforcement agencies and stakeholders awarded today by the Office of Community Oriented Policing Services (COPS Office). The COPS grants announced today include funding to help law enforcement agencies hire over 1,730 new law enforcement officers across the country while also providing critical funding to support school safety and continue to advance community policing nationwide.
They also named the five new cities to join the more than 50 jurisdictions currently part of the Office of Justice Program (OJP)’s Bureau of Justice Assistance (BJA) National Public Safety Partnership (PSP), which has a proven track record of helping partner sites reduce crime, improve homicide clearance rates, and enhance the quality of life for community members. The 2024 PSP sites are: Knoxville, Tennessee; Minneapolis; Raleigh, North Carolina; San Antonio; and Vallejo, California.
Lastly, the Deputy Attorney General and Associate Attorney General announced that this Dec. 11-13, in Indianapolis, the Justice Department will bring together up to 1,500 local and federal partners from across the country, including representatives from the more than 50 PSP jurisdictions and from Project Safe Neighborhoods for a Violent Crime Reduction Summit hosted by OJP BJA.
“Law enforcement officers across the country are showing up every day to protect their communities in the face of unprecedented challenges,” said Attorney General Merrick B. Garland. “These grants, which support the hiring of more than 1700 new officers and make critical investments in school safety and crisis intervention efforts, will help provide local law enforcement agencies with the resources they need to keep their communities safe, support officers, and build public trust.”
“The latest data indicates progress on declining crime rates, but the Justice Department recognizes there is far more work to do so that all Americans can be free from violence,” said Deputy Attorney General Lisa O. Monaco. “Local communities know best what works, which is why the Justice Department has recently invested over $5.6 billion in community-driven safety initiatives. The grants and partnerships announced today build on past investments and further our pledge to work hand-in-hand with law enforcement and community partners to harness our resources, intelligence, and expertise to reduce violent crime.”
“I can’t emphasize enough how critical these grants are to urban, suburban, and rural communities across the country to address urgent public safety needs and increase police-community trust and collaboration,” said Associate Attorney General Vanita Gupta. “These grants provide vital investments for communities to hire highly qualified and diverse police officers, improve school safety, and strengthen police and community partnerships.”
Since its creation in 1994, the COPS Office has advanced community policing nationwide and provided grants to over 13,000 state, local, territorial, and Tribal law enforcement agencies to fund the hiring and redeployment of approximately 138,000 officers. Funding highlights from the grants announced today include:
- Nearly $217 million to 394 agencies through the COPS Hiring Program (CHP) for the hiring of 1,730 entry-level career law enforcement officers in an effort to create and preserve jobs and increase community policing capacity and crime prevention efforts.
- More than $73.6 million to 206 school districts, state, and local governments, and other public agencies through the COPS School Violence Prevention Program (SVPP) to improve security at schools and on school grounds.
- Approximately $43.6 million to support crisis intervention teams, de-escalation training, accreditation efforts, and innovative community policing strategies through the COPS Community Policing Development (CPD) program.
Complete lists of all program award recipients, including funding amounts, can be found here.
“For almost 30 years, the COPS Office has worked to reduce crime and increase trust between law enforcement and the community through the many different grant programs that we offer,” said Director Hugh T. Clements Jr. of the COPS Office. “The funding we are announcing today will go a long way toward advancing this very important work.”
These grant awards build on the $4.4 billion that the Justice Department’s OJP has already awarded in fiscal year 2023 to support state, local and tribal public safety and community justice activities. More than $1 billion of those funds are specifically designed to reduce crime and violence, and support law enforcement. An additional $109 million supports school violence prevention and research.
“Success in reducing violent crime comes from our ability to work together, partnering with law enforcement and communities, building broad coalitions that recognize and address how to promote public safety,” said Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to offer robust support to jurisdictions to address violent crime in critical ways.”
OJP provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime; advance equity and fairness in the administration of justice; assist victims; and uphold the rule of law.
Four Toledo Area Individuals Sentenced for Healthcare Fraud SchemeRead the Press Release
TOLEDO –Kevin A. Clay, age 40, formerly of Perrysburg, Ohio was sentenced by U.S. District Judge Jack Zouhary to 51 months’ imprisonment after being convicted during a trial of conspiracy, healthcare fraud, and making a false statement on an application for charitable tax-exempt status with the IRS. Judge Zouhary also ordered two years of supervised release, a $300 special assessment, and forfeiture of property related to the offenses. Restitution will be determined at a later date.
According to court documents and evidence presented at trial, Kevin A. Clay was the co-owner of Theramedical, LLC, a pharmaceutical marketing company specializing in compounded pain and scar cream. The evidence showed that Clay and Theramedical recruited and paid individuals to obtain prescriptions for pain and scar cream, some of which cost as much as $14,000 for a single prescription. The prescriptions were submitted to a Cleveland-area pharmacy, which filled the prescription and billed insurance companies. Members of the scheme concealed the fact that patients were paid to get the prescriptions, and that the prescriptions were often medically unnecessary. In less than two years, Theramedical generated insurance billings of approximately $17 million from the fraudulent scheme. Clay was also convicted of making a false application for tax-exempt status for the Clay Foundation. In his application to the IRS, Clay claimed the foundation was a public charity, however, it was almost entirely funded by fraud proceeds from Theramedical, not the public. Clay conducted little or no fundraising, awarded virtually no scholarships, and purchased gold and silver in his own name with foundation funds.
Three others were also sentenced by Judge Zouhary as part of the scheme. Matthew Maluchnik, a co-founder of Theramedical, LLC, was sentenced to 25 months’ imprisonment after pleading guilty to healthcare fraud and making false statements on tax returns. Loni Peace, a relative of Maluchnik, was sentenced to two years’ probation after pleading guilty to health care fraud. Peace recruited co-workers to obtain prescriptions and received a portion of the proceeds for every patient she recruited. Suzette Lynn Huenefeld, a medical doctor that operated in Perrysburg, Ohio, was sentenced to two years’ probation after pleading guilty to healthcare fraud. Huenefeld wrote prescriptions for pain and scar cream for patients referred to her by Theramedical.
This case was investigated by the Federal Bureau of Investigation in Toledo, Ohio, and the Internal Revenue Service–Criminal Investigations in Cleveland, Ohio, the Ohio Attorney General’s Medicaid Fraud Control Unit, and the Ohio State Medical Board. The case was prosecuted by Assistant U.S. Attorney and Gene Crawford.
Defiance man Sentenced to 30 years for Attempted Sexual Exploitation of a Minor, Coercion and Enticement and Receipt and Distribution of Child PornographyRead the Press Release
TOLEDO – Martin Lee Wilcoxon, age 31, of Defiance, Ohio was sentenced to thirty years imprisonment by U.S. District Judge James R. Knepp III after earlier pleading guilty to attempted sexual exploitation of a minor, coercion and enticement of a minor and receipt and distribution of child pornography. Judge Knepp also ordered Wilcoxon to pay a $45,000 restitution, a $300 special assessment and to serve 10 years of supervised release.
According to court documents, beginning February 2022, Defendant used the social media application, KiK to chat with an Online Covert Employee portraying the persona of a 13-year-old girl. During the chats, Wilcoxon, requested the purported 13-year-old send him naked photos and videos of herself. Wilcoxon tried to arrange various meetings with the purported 13-year-old girl to have sex with her.
On June 16, 2022, a search warrant was executed at Wilcoxon’s residence. Several electronic devices were seized from his home. A forensic examination of his devices revealed more than 11,000 images of child pornography, most of which involved prepubescent females, including toddlers. Wilcoxon was also found to be the moderator of several child pornography chat groups on KiK.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Sara Al-Sorghali and Tracey Tangeman.
Ohio Man Pleads Guilty to Attempting to Burn Down a Church that Planned to Host Drag Show EventsRead the Press Release
WASHINGTON – An Ohio man pleaded guilty yesterday to violating the Church Arson Prevention Act and to using fire and explosives to commit a felony, all in connection with his attempt to burn down a church because of the church’s support for the LGBTQI+ community.
According to court documents, on March 25, Aimenn D. Penny, 20, of Alliance, made Molotov cocktails and drove to the Community Church of Chesterland (CCC), in Chesterland, Ohio.
Angered by the church’s plan to host two drag events the following weekend, Penny threw two Molotov cocktails at the church, hoping to burn it to the ground. Through Penny’s guilty plea, he admitted to using force through fire and explosives, intending to obstruct CCC congregants in their enjoyment and expression of their religious beliefs.
Penny was arrested and charged earlier this year with violating the Church Arson Prevention Act, one count of using fire to commit a federal felony, one count of malicious use of explosive materials and one count of possessing a destructive device.
“Attempting to burn down the Community Church of Chesterland for their support of the LGBTQI+ community is reprehensible,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “There is no room in this country for such biasmotivated violence and terror, and the Justice Department will continue to protect all Americans in their free exercise of religious beliefs by vigorously prosecuting those who target houses of worship. Our churches should be safe havens for all people, not sites subjected to violence motivated by hate and vitriol.”
“Mr. Penny admitted to attempting to burn down a church because he did not like the way congregants chose to express their beliefs,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Such acts of extremist violence are antithetical to core American values of freedom of expression and worship and we will not tolerate those who would use force to deny our citizens the free exercise of their rights.”
“By pleading guilty, Aimenn Penny has admitted that he attempted to burn down the Community Church of Chesterland because he disagreed with a planned LGBTQI+ event,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Violence is never appropriate to settle differences in beliefs. All members of our community are entitled to peacefully assemble, worship, and express themselves freely, without fear of violence or intimidation, and the United States Attorney’s Office for the Northern District of Ohio will aggressively prosecute criminals who
threaten that right.”“The FBI’s Joint Terrorism Task Force worked in tandem with our local law enforcement and community partners to identify and bring federal charges against a hate-fueled individual, motivated to violence by his extremist ideology,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “He committed these despicable acts in an effort to terrorize and intimidate a religious institution’s free expression, and he should face accountability for these crimes.”
Penny faces a maximum penalty of 20 years in prison for the violation of the Church Arson Prevention Act and a 10-year mandatory prison sentence that will run consecutively with any other prison term imposed for using fire to commit a federal felony. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Sentencing has been scheduled for Jan. 29, 2024.
The FBI Cleveland Field Office is investigating the case.
Assistant U.S. Attorneys Brian Deckert and Matthew W. Shepard for the Northern District of Ohio and Trial Attorneys Jacob Warren and Justin Sher of the National Security Division’s Counterterrorism Section are prosecuting the case with assistance from Trial Attorney Eric Peffley of the Civil Rights Division’s Criminal Section.
Ohio Man Pleads Guilty to Attempting to Burn Down a Church that Planned to Host Drag Show EventsRead the Press Release
An Ohio man pleaded guilty yesterday to violating the Church Arson Prevention Act and to using fire and explosives to commit a felony, all in connection with his attempt to burn down a church because of the church’s support for the LGBTQI+ community.
According to court documents, on March 25, Aimenn D. Penny, 20, of Alliance, made Molotov cocktails and drove to the Community Church of Chesterland (CCC), in Chesterland, Ohio. Angered by the church’s plan to host two drag events the following weekend, Penny threw two Molotov cocktails at the church, hoping to burn it to the ground. Through Penny’s guilty plea, he admitted to using force through fire and explosives, intending to obstruct CCC congregants in their enjoyment and expression of their religious beliefs.
Penny was arrested and charged earlier this year with violating the Church Arson Prevention Act, one count of using fire to commit a federal felony, one count of malicious use of explosive materials and one count of possessing a destructive device.
“Attempting to burn down the Community Church of Chesterland for their support of the LGBTQI+ community is reprehensible,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “There is no room in this country for such bias-motivated violence and terror, and the Justice Department will continue to protect all Americans in their free exercise of religious beliefs by vigorously prosecuting those who target houses of worship. Our churches should be safe havens for all people, not sites subjected to violence motivated by hate and vitriol.”
“Mr. Penny admitted to attempting to burn down a church because he did not like the way congregants chose to express their beliefs,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Such acts of extremist violence are antithetical to core American values of freedom of expression and worship and we will not tolerate those who would use force to deny our citizens the free exercise of their rights.”
“By pleading guilty, Aimenn Penny has admitted that he attempted to burn down the Community Church of Chesterland because he disagreed with a planned LGBTQI+ event,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Violence is never appropriate to settle differences in beliefs. All members of our community are entitled to peacefully assemble, worship, and express themselves freely, without fear of violence or intimidation, and the United States Attorney’s Office for the Northern District of Ohio will aggressively prosecute criminals who threaten that right.”
“The FBI’s Joint Terrorism Task Force worked in tandem with our local law enforcement and community partners to identify and bring federal charges against a hate-fueled individual, motivated to violence by his extremist ideology,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “He committed these despicable acts in an effort to terrorize and intimidate a religious institution’s free expression, and he should face accountability for these crimes.”
Penny faces a maximum penalty of 20 years in prison for the violation of the Church Arson Prevention Act and a 10-year mandatory prison sentence that will run consecutively with any other prison term imposed for using fire to commit a federal felony. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Sentencing has been scheduled for Jan. 29, 2024.
The FBI Cleveland Field Office is investigating the case.
Assistant U.S. Attorneys Brian Deckert and Matthew W. Shepard for the Northern District of Ohio and Trial Attorneys Jacob Warren and Justin Sher of the National Security Division’s Counterterrorism Section are prosecuting the case with assistance from Trial Attorney Eric Peffley of the Civil Rights Division’s Criminal Section.
Parma Man Indicted for Child Pornography CrimesRead the Press Release
CLEVELAND – A Parma man was indicted for child pornography crimes. Brandon N. Crites, 32, of Parma, was indicted on one count each of receipt and distribution of child pornography and possession of child pornography.
Crites, between 2022 and 2023, received and distributed numerous images of minors engaged in sexually explicit conduct, and possessed a laptop and hard drives that contained child pornography in September 2023, according to the indictment. At the time of the offenses, Crites was employed as a patrolman with the Cleveland Police Department.
This case is being prosecuted by Assistant U.S. Attorney Jennifer King following an investigation by the FBI.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Aurora Man Convicted of Defrauding Non-Profit of More Than $880,000 Intended to Address Cleveland Food DesertRead the Press Release
CLEVELAND –United States Attorney Rebecca C. Lutzko announced today that Arthur Fayne, 61, who managed the development of the New East Side Market, was found guilty of all 9 counts of wire fraud for embezzling more than $880,000 in funds intended to help the residents of Cleveland’s Glenville neighborhood, but which Fayne used for an extravagant lifestyle with extensive casino gambling. The trial lasted five days and was presided over by U.S. District Judge Solomon Oliver, Jr.
According to court documents and trial testimony, Fayne owned and managed Business Development Concepts, LLC (“BDC”), through which he oversaw construction projects. Northeast Ohio Neighborhood Health Services, Inc. (“NEON”) was a nonprofit corporation that operated as a federally qualified health center network of community health centers and provided primary care medical services in the Cleveland, Ohio area. As part of that mission, NEON, through a subsidiary, initiated a project to redevelop a vacant building in the Glenville neighborhood into a grocery store and community center called the New East Side Market. The grocery store was intended to address the persistent food desert challenges in Glenville. NEON entrusted Fayne with control of the project and payments to vendors, and Fayne used that trust to steal funds NEON provided for the project.
Fayne was convicted of embezzling approximately $759,105.92 in funds intended to pay the project’s general contractor, the Albert M. Higley Company (“AM Higley”). Fayne concealed the invoices he received from AM Higley while submitting his own invoices to NEON seeking funds he claimed were for paying AM Higley. He then diverted to his personal benefit more than $750,000 of the funds intended for AM Higley.
Fayne was also convicted of embezzling approximately $125,923.86 in funds intended for audio-visual contractor Crescent Digital. That vendor actually returned roughly half of the money it had been paid at the start of the project, telling Fayne that it could only collect a deposit at that time, and would invoice BDC for the balance when the work was complete. Rather than hold those funds to pay Crescent Digital, however, Fayne had the funds deposited in his wife’s personal account, and then diverted that money for his benefit.
Fayne spent the money on the extravagant lifestyle he lived, which included sometimes gambling tens of thousands of dollars in a single night. Evidence showed Fayne lost over $1 million at casinos during the project. Fayne’s spending of the diverted funds included gambling at the JACK Cleveland Casino, gambling at a New Orleans casino, and making personal expenditures on Louis Vuitton merchandise, services at a New York City spa, and a luxury cruise out of Miami.
The investigation preceding the indictment was conducted by the Cleveland Division of the FBI and the U.S. Department of Housing and Urban Development’s Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Vanessa V. Healy.
Orrville Man Sentenced to Prison for Mail, Wire, and Securities FraudRead the Press Release
CLEVELAND – Thomas Brenner, 60, of Orrville, Ohio, was sentenced to 125 months imprisonment by U.S. District Court Judge Donald C. Nugent after earlier pleading guilty to conspiracy to commit mail and wire fraud, conspiracy to commit securities fraud, mail fraud, wire fraud, securities fraud, and engaging in a monetary transaction in property derived from criminal activity. Judge Nugent ordered Brenner to pay $3,487,938.89 in restitution and serve 3 years of supervised release.
According to court documents, Brenner was a financial broker-dealer and President of First American Securities, Inc., located in Orrville. In March of 2015, Brenner conspired to recruit clients to “invest” in United RL Capital Services, LLC (“URL”), a company that purportedly financed medical laboratory developments.
Investors were solicited by Brenner over the phone, through letters, and in person while he misrepresented material information. Brenner indicated that investors’ money would finance medical laboratory developments; they would receive their money back, with interest, after three years; and that URL was as safe or safer than other existing investments.
Some investors, at Brenner’s encouragement, removed money from their IRAs to invest in URL, and represented this would not result in tax penalties. Instead of apportioning investors’ money, as promised, Brenner used the funds for his benefit, including to make large race car-related purchases, and to pay back tax debts. When investors inquired about their investments, Brenner misrepresented that they were secure and provided some investors with sporadic, minimal payments, disguised as installments of earned interest, all to lull investors into believing their money was safe and being used as promised.
Brenner learned he was being investigated for selling URL securities by the Financial Industry Regulatory Authority (“FINRA”), a congressionally authorized entity that licenses and regulates broker-dealers. Brenner continued to sell URL securities after representing to FINRA under oath that he would stop. He did not tell prospective investors about the investigation, that First American Securities, Inc. could face closure, and that the defendant could be suspended from associating with any FINRA-registered firm, which he eventually was.
The investigation was conducted by the FBI. The case was prosecuted by Assistant United States Attorneys Kathryn Andrachik and Erica Barnhill.
U.S. Attorney’s Offices in Ohio and Michigan Reach Settlement with Huntington National Bank to Make Online Banking More Accessible to Social Security Representative Payee Account Holders and Disabled BeneficiariesRead the Press Release
CLEVELAND – United States Attorneys in Ohio and Michigan today announced a settlement agreement with Huntington National Bank that will make its services more accessible to Social Security Representative Payees (SSRP) and their beneficiaries with disabilities.
Huntington National Bank fully cooperated with the U.S. Attorney’s Offices in the Northern District of Ohio, Southern District of Ohio and Eastern District of Michigan to reach a settlement that will restore access to SSRPs who use online services the bank had previously restricted on behalf of beneficiaries with disabilities.
In February 2021, Huntington terminated the ability of individuals acting as SSRPs to use Huntington’s electronic banking services. Account holders with disabilities and their authorized representatives were thereby barred from full and equal access to the numerous online banking services Huntington offers.
Title III of the Americans with Disabilities Act of 1990 (ADA) prohibits banks like Huntington from discriminating against account holders with disabilities. Under the terms of the agreement, Huntington must provide SSRPs with full access to its online banking system. The agreement also requires Huntington to notify both current and past account holders that it has changed its policies.
Rebecca C. Lutzko, United States Attorney for the Northern District of Ohio; Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Dawn N. Ison, United States Attorney for the Eastern District of Michigan announced the settlement.
“SSRPs provide an invaluable service to disabled Social Security beneficiaries, and it is critical that we protect their right to use the same banking conveniences available to non-disabled customers, to ensure that they can take care of the basic needs of disabled beneficiaries” said Northern District of Ohio U.S. Attorney Rebecca C. Lutzko.
“This settlement shows that we will continue to staunchly enforce the ADA and give Social Security beneficiaries with disabilities equal access to online banking,” said Southern District of Ohio U.S. Attorney Kenneth L. Parker. “I commend the attorneys in my office and our counterparts in Northern Ohio and Eastern Michigan for their dedication to this important issue.”
“Collaborating with our partners to ensure our civil rights laws are enforced is one of my key priorities,” said Eastern District of Michigan U.S. Attorney Dawn Ison. “Ensuring equal online banking access to those who need it most, like disabled individuals who use SSRP accounts, is crucial,” she added.
The claims resolved by this settlement are allegations only and there has been no determination of liability. In agreeing to the settlement terms, Huntington denied all liability under the ADA. Individuals can submit complaints to the Civil Rights Division through its complaint portal at www.ada.gov/complaint. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Lakewood Man Sentenced to Prison for Ponzi SchemeRead the Press Release
CLEVELAND – Paul Kimmins Lebo, 41, of Lakewood, Ohio, was sentenced today to 48 months of imprisonment by U.S. District Judge Charles E. Fleming after he earlier pleaded guilty to wire fraud in connection to a Ponzi scheme. Judge Fleming also sentenced Lebo to pay $635,000 in restitution and serve 3 years of supervised release.
According to court documents, from August 2017 through October 2021, Paul Lebo persuaded nearly 100 individuals to invest in his non-operational hedge fund, promising them future equity ownership and options trading strategies with assurances that their investments were protected and any deposits would be fully refundable. He also convinced them to provide short-term loans by giving false explanations about why he needed the loans and false assurances about his ability to repay. Instead, Lebo used the money for personal expenses, bad stock market trades, unsuccessful attempts to acquire real estate, and to repay earlier investors. Throughout the scheme, Lebo provided the victims bogus updates about the status of their investments to get victims to invest more. At times he would use new investor funds or his parents’ money to repay the victims or write “refund” checks from accounts that contained insufficient funds.
In addition to his fraudulent hedge fund scheme, Lebo also defrauded multiple people over the internet by offering items for sale without intending to deliver them. Instead, he used the payments from the “sales” to repay his hedge fund investors or make stock trades that ultimately resulted in the total loss of the funds.
The investigation was conducted by the FBI. The case was prosecuted by Assistant United States Attorney Erica Barnhill.