Northern District of Ohio

CLEVELAND – William Sims, 45, of Cleveland, Ohio, was found guilty on Monday of all seven drug trafficking and firearms charges against him after a five-day trial by jury before U.S. District Court Judge Dan Aaron Polster. The charges included possession with the intent to distribute methamphetamine, crack, fentanyl, fluorofentanyl, cocaine, and heroin, as well as being a felon in possession of firearms and ammunition and possession of firearms in furtherance of a drug trafficking crime.

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 prior felony convictions.

Sentencing is scheduled for November 2, 2023. Sims faces a mandatory minimum sentence of ten 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 Cleveland Police Department, and First District Detective Ryan McNamara and was prosecuted by Assistant U.S. Attorneys Payum Doroodian and Alejandro Abreu.

WASHINGTON – A federal grand jury in Cleveland, Ohio, returned five indictments, unsealed today, charging a total of ten individuals, three of whom were previously charged, with illegal gambling, tax and/or other related offenses.

According to the indictments, nine defendants owned or operated illegal gambling businesses (“IGBs”) in Canton, Ohio, including Skilled Shamrock, Redemption, Plaza 777, Gametastic, Gametastik, Belden Connection 777, Café 62, Got Skillz, and Skillz 777.

Stephanie Condric

One indictment charges that Stephanie Condric of Canton, Ohio, allegedly co-owned and operated Gametastic. Condric and others allegedly concealed their ownership of Gametastic by putting the business in the name of a nominee and reported some of its payroll under the name of a nominee business. According to the indictment, Condric and her co-conspirators failed to report all of Gametastic’s payroll on employment tax returns filed with the IRS. Condric also allegedly failed to report her share of Gametastic’s profits on her individual income tax returns for 2016 and 2017.

Christos Karasarides, Christopher Karasarides, Ronald DiPietro, Thomas Helmick

In May 2021, a grand jury returned a superseding indictment charging Ronald DiPietro (a Certified Public Accountant), Thomas Helmick, and Jason and Rebecca Kachner with tax and gambling offenses. In 2022, a second superseding indictment charged DiPietro with tax evasion and added Christos Karasarides who worked with DiPietro to provide false information to the IRS. Jason and Rebecca Kachner, who are married, pleaded guilty in July 2022.

A third superseding indictment now adds Christopher Karasarides. Christopher Karasarides and his father, Christos Karasarides, both of Canton, Ohio are charged with, among other violations, conspiring to defraud the United States. The indictment alleges that Christos Karasarides fraudulently attempted to compromise and settle his more than $3.1 million tax debt with the IRS by (1) submitting false information to the IRS about his interest in and income from IGBs, (2) filing false income tax returns, and (3) hiding his income and assets, including his ownership and income from Skilled Shamrock, Redemption, and Plaza 777. Christos Karasarides allegedly spent millions in cash between 2013 and 2019 for cars, golf and other expenses at a country club, credit card charges, and purported loans for businesses with which he was associated The indictment alleges that Christopher helped conceal his father’s assets from the IRS by serving as a nominee owner of some of his father’s businesses In addition, Christopher allegedly filed false individual tax returns for 2017 through 2020 reporting that he was the shareholder in a particular business when, in fact, Christos Karasarides was the true shareholder.

Melissa Bragg

Melissa Bragg of Canton, Ohio, is charged in a separate indictment with conducting Belden Connection 777, an illegal gambling business, from approximately 2013 to July 11, 2018.

Michael Moneypenny

Michael Moneypenny of Norton, Ohio, is charged in a separate indictment with four counts of conducting illegal gambling businesses, arising from his involvement in Skilled Shamrock, Redemption, Gametastic, and Gametastik. Moneypenny allegedly operated a business repairing and selling slot machines, and also leased slot machines to gambling businesses in Ohio and Florida.

Isaiah Worlow, Steven Fluharty, and Tiffany Kerekes

Isaiah Worlow, Steven Fluharty, and Tiffany Kerekes are charged in a fifth indictment with conducting illegal gambling businesses related to Got Skillz, Skillz 777, and Café 62.

Stephanie Condric made her initial court appearance today before U.S. District Magistrate Judge Amanda M. Knapp of the Northern District of Ohio. If convicted, Condric faces a maximum penalty of five years in prison for conspiring to impede and impair the functions of the IRS, five years for conspiring to own and operate an illegal gambling business, five years for conducting an illegal gambling business, and three years for subscribing a false return.

Christopher Karasarides made his initial court appearance today before U.S. District Judge Donald Nugent of the Northern District of Ohio. If convicted, Christopher Karasarides faces a maximum penalty of five years in prison for the conspiracy count and three years in prison for each false tax return count.

Melissa Bragg made her initial appearance today before U.S. District Court Judge John R. Adams of the Northern District of Ohio. If convicted, she faces a maximum penalty of five years in prison for owning and operating an illegal gambling business.

Michael Moneypenny made his initial appearance today before U.S. District Court Magistrate Judge Amanda M. Knapp of the Northern District of Ohio. If convicted, he faces a maximum penalty of five years in prison for each count of owning and operating an illegal gambling business.

Christos Karasarides, Tiffany Kerekes, Isaiah Worlow, and Steven Fluharty will make their initial appearances at a later date.

A federal district court judge will determine any sentence 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 United States Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.

IRS-Criminal Investigation, the Stark County, Ohio, Prosecutor’s Office, the U.S. Department of Treasury Office of Inspector General, Homeland Security Investigations, the Ohio Casino Control Commission, and the Ohio Organized Crime Investigations Commission – Major Crimes Task Force are investigating the case.

Trial Attorneys Sam Bean and Richard M. Rolwing of the Justice Department’s Tax Division and Assistant U.S. Attorney Aaron Howell of the Northern District of Ohio are prosecuting the case. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

CLEVELAND - A Warren, Ohio man with an extensive criminal history that includes Possession of Cocaine and Trafficking in Cocaine has been indicted by a federal grand jury. On July 11, 2023 the grand jury returned a seven-count indictment charging Stanley E. Redd, Jr., 44, with Felon in Possession of Firearms and Ammunition; Possession with Intent to Distribute Fentanyl; Possession with Intent to Distribute Cocaine; Using and Maintaining a Drug Premises; Possessing a Firearm in Furtherance of a Drug Trafficking Crime; Sponsoring or Exhibiting Animals in Animal Fighting Venture; and Buying, Selling, Delivering, Possessing, Training, or Transporting Animals for Participation in Animal Fighting Venture.

The indictment alleges that on or about May 18, 2021, Redd possessed an Amadeo Rossi .38 caliber revolver, and a RG Industries, Model RG40, .38 caliber revolver, and ammunition. He is prohibited from possessing firearms and ammunitions due to his convictions in 2003, 2007, 2013, and 2014 for Possession of Cocaine and in 2008 for Trafficking in Cocaine and Possession of Cocaine.

The indictment also alleges on or about May 18, 2021, Redd possessed with the intent to distribute Fentanyl and Cocaine; and possessed a firearm in furtherance of drug trafficking crimes.

The indictment further alleges that from on or about May 5, 2021, through on or about May 18, 2021, Redd knowingly used and maintained a premises located in Warren, Ohio for the purpose of distributing controlled substances.

Finally, the indictment charges Redd with sponsoring and exhibiting an animal in an animal fighting venture and buying, selling, possessing, training, or transporting animals for participation in an animal fighting venture beginning in or around December 2020 and ending on or about May 18, 2021.

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

The investigation preceding the indictment was conducted the FBI, USDA, and Warren City Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer L. McLaughlin and Senior Litigation Counsel Michelle M. Baeppler. An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

A financial planner from the Cleveland-area pleaded guilty today to conspiracy to defraud the United States and assisting in the filing of a false tax return. 

According to court documents and statements made in court, Rao Garuda, the President and Chief Executive Officer of Associated Concepts Agency, Inc. (“ACA”), engaged in a scheme -- known as the Advanced Legacy Plan or the Ultimate Tax Plan -- to assist high-income individuals in unlawfully reducing their taxes using a plan organized, marketed and sold by a coconspirator, Individual A.  ACA’s former Chief Operating Officer previously pleaded guilty to conspiracy to defraud the United States on Sept. 26, 2022.

To accomplish the scheme, Garuda, Individual A, and other coconspirators instructed clients to (a) transfer assets to an LLC in exchange for 100% ownership interest in the LLC, (b) assign the 100% ownership interest to a charity controlled by co-conspirators, and (c) claim a charitable contribution tax deduction for the purported donation.  Garuda and others marketed the scheme as a way for clients to receive the tax deduction without relinquishing control over the LLC or its assets.  After executing the scheme, clients could access the assets inside the LLCs through tax-free loans.  Garuda marketed the scheme despite being warned by several attorneys over the years that the scheme was illegal, such as one attorney describing the scheme as “clearly fraudulent.” 

Garuda, Individual A, and others also assisted clients in claiming charitable contribution tax deductions after the close of the tax year by backdating documents to make it look as if clients executed the scheme in a prior year. To do so, Garuda and others directed clients to use preexisting LLCs (sometimes referred to as “Shelf LLCs”) that Individual A had created and formed at the end of the prior year and backdate documents to make it appear as if the clients owned and assigned ownership interests in the Shelf LLCs in the prior year.

For his role in the scheme, Garuda caused or intended to cause a tax loss of more than $2.7 million, which he agreed to pay back as restitution to the United States.

After the Department of Justice filed a civil lawsuit against Individual A in 2018 to stop Individual A from organizing, marketing, and selling the scheme, Garuda, Individual A, and other coconspirators sought to obstruct the case by providing clients with false, backdated documents to turn over to the government in response to civil subpoenas.

Garuda is scheduled to be sentenced on Nov. 14, 2023, and faces a maximum penalty of five years in prison for conspiracy to defraud the United States and three years in prison for the false return count.  He also faces a period of supervised release, restitution, and monetary penalties.  A federal district court judge will determine any sentence 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 Michelle M. Baeppler of the Northern District of Ohio made the announcement.

IRS-Criminal Investigation is investigating the case.

Assistant Chief Michael Boteler and Trial Attorneys Casey S. Smith and Andrew Ascencio of the Justice Department’s Tax Division and Assistant U.S. Attorney Elliott Morrison of the Northern District of Ohio are prosecuting the case.

United States Attorney Rebecca C. Lutzko, Wood County Prosecuting Attorney Paul Dobson, and Bowling Green Police Chief Tony Hetrick announced today that a federal misdemeanor charge under the Freedom of Access to Clinic Entrances (FACE) Act, was filed by information against Whitney M. Durant, a.k.a. Soren Monroe, age 20.

The FACE Act (18 U.S.C. § 248(a)(3)), prohibits a person from intentionally damaging or destroying the property of a facility because that facility provides reproductive health services. According to the information, on April 15, 2023, Durant intentionally damaged the property of HerChoice, a pregnancy care center located in Bowling Green, Ohio, by defacing the clinic’s building with spray paint because the clinic provides reproductive health services. Durant is a Bowling Green State University Student.

An information is only an allegation 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.

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum of one year incarceration.

This case is being prosecuted by Assistant U.S. Attorney Angelita Cruz Bridges and Wood County Prosecutor Paul Dobson, who is also a Special Assistant U.S. Attorney, following a joint investigation by the Bowling Green Police Department and the Federal Bureau of Investigation.

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 three-count indictment charging a Willoughby Hills couple with conspiring to set fire to rental properties in order to collect insurance money.

Lonnie White, 46, and Lisa Ogletree, 46, of Willoughby Hills, Ohio, face one count of conspiracy to commit wire and mail fraud, one count of conspiracy to engage in money laundering, and one count of conspiracy to use fire in commission of a felony.

The indictment charges that from April 2013 through March 2019, White and Ogletree devised a scheme to defraud several insurance companies by setting houses on fire and falsely collecting insurance proceeds. White and Ogletree agreed to purchase ownership rights in houses, recruit additional people to act as nominal owners and renters, and obtain insurance on the houses. White and Ogletree then arranged for the houses to be set on fire while staging the fires to appear accidental. White and Ogletree recruited nominal owners to submit fraudulent loss claims to the house insurers for the fire damage and after payment would distribute the funds to White and Ogletree. White and Ogletree agreed with others to transfer proceeds obtained from the insurance payouts to different accounts. White and Ogletree agreed to use fire to defraud insurance companies.

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 Bureau of Alcohol, Tobacco, Firearms, and Explosives.

The U.S. Attorney’s Office for the Northern District of Ohio would like to acknowledge and thank the Cleveland Fire Investigation Unit; the Cuyahoga County Fusion Center; the Ohio State Fire Marshal; the Internal Revenue Service, Criminal Investigation; and the U.S. Department of Housing and Urban Development, Office of Inspector General for their cooperation with this matter. The case is being prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Adam J. Joines.

ATF is the federal agency with jurisdiction for investigating fires and crimes of arson. Anyone having information about an incidence of arson should contact ATF at 1-888-ATF-TIPS (888-283- 8477). Individuals may also email ATFTips@atf.gov, or contact ATF through its website at www.atf.gov/contact/atf-tips. Tips may also be submitted to ATF using the ReportIt® app, available on both Google Play and the Apple App Store, or by visiting www.reportit.com.

AKRON – Darrin Harsley, 33, of Cleveland, Ohio, was sentenced to 262 months of imprisonment on Tuesday, June 27, 2023 by U.S. District Judge John R. Adams after he pleaded guilty to three counts of distribution of a controlled substance.

According to court documents, in August 2022, Ashtabula Police learned that a drug dealer from Cleveland nicknamed “D” was selling methamphetamine and fentanyl in the Ashtabula area. Based on a review of CashApp and phone information, Ashtabula Police were able to identify “D” as Darrin Harsley, who had prior felony convictions for felonious assault and drug trafficking. Then between August 30 and September 15, 2022 Ashtabula Police used a confidential source to make three purchases of methamphetamine and fentanyl from Harsley. During each of those three drug sales, Harsley traveled from Cleveland to Ashtabula, where he met the source at a park and sold them methamphetamine and fentanyl. Ashtabula Police arrested Harsley following the third drug sale and found the cash from the sale in the center console of his vehicle. According to court records, Harsley had been released from prison in 2021 after serving approximately a decade for two felonious assault convictions, each of which involved a firearm.

At Harsley’s sentencing hearing, the court determined that he qualified as a career offender based on his two prior felonious assault convictions, and was therefore subject to an increased sentencing guidelines range.

The investigation was conducted by the Ashtabula Police Department and the FBI Safe Streets Task Force. The case was prosecuted by Assistant United States Attorney James P. Lewis.

CLEVELAND – Michael Harman, 46, of Ravenna, Ohio, was sentenced yesterday to 43 months in prison by U.S. District Judge Solomon Oliver, Jr. after Harman pleaded guilty to a six-count information that charged him with wire fraud, making and subscribing false tax returns, and money laundering. Harman was also ordered to pay restitution of $1,081,875.10 to the victim, Geis Company, and $227,638 to the IRS.

According to court documents, Harman was a Certified Public Accountant and was employed as a controller with his employer. As a controller, some of Harman’s responsibilities included processing payroll adjustments. From 2016 to August 2020, Harman devised a scheme to embezzle more than $1 million from his employer and used the funds for personal use, including child support payments in the State of New York and moving expenses. Harman executed the scheme by using a series of unauthorized wire transfers, fictitious checks, and fraudulent charges on his employer’s credit cards.

In addition, Harman failed to report income earned from the scheme on his tax returns for the tax years 2016, 2017, 2018, and 2019.

This case was investigated by the Cleveland FBI, Akron Resident Agency and IRS Criminal Investigation (CI). This case is being prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Aaron P. Howell.

CLEVELAND, OH – Federal, county, and local law enforcement officials today announced that 31 individuals were charged in two separate indictments for their roles in drug trafficking conspiracies that involved the distribution of fentanyl, cocaine, and methamphetamine in the Northern District of Ohio, including in Marion, Wyandot, and Lorain Counties. Twenty-one were arrested during an early morning operation and transported to federal court in Cleveland.

This announcement is made by United States Attorney Rebecca C. Lutzko, FBI Special Agent in Charge Gregory Nelsen, and the MARMET Drug Task Force in Marion, Ohio. “Yesterday’s arrests and announced indictments will give the community of Marion, Ohio, some relief from the opioid epidemic that has been a persistent scourge in our District,” said United States Attorney Rebecca C. Lutzko. “These arrests reflect law enforcement targeting organizations that sell deadly drugs in our communities to hold those organizations accountable for the lives they regularly destroy. The United States Attorney’s Office will continue its targeted and collaborative efforts with our local, state, and federal partners to identify and dismantle drug trafficking organizations that bring poison and violence into our neighborhoods.”

“FBI Cleveland and the Mansfield Resident Agency, together with its seven resident agencies across northern Ohio, is focused on identifying, investigating, and disrupting drug trafficking organizations and eliminating their operations,” said FBI Cleveland Special Agent in Charge Gregory Nelsen. “The coordination of these arrests was highly complex and underscores the collaborative effort of the FBI, together with our partners in federal, state, and local law enforcement. We thank and appreciate their work as they continue to find criminal actors who seek to ruin lives and poison our communities through their expansive drug network.”

The fourteen and eighteen individuals listed below, respectively, were charged in two separate multi-count indictments with the following charges: conspiracy to possess with the intent to distribute and distribution of controlled substances, distribution of a controlled  substances, possession with the intent to distribute controlled substances, and use of a communications facility to facilitate a drug trafficking offense:

Christopher Payne, 24, Marion, OH; Michael Worthington, G., 28, Marion, OH; Dave Davis, 43, Marion, OH; Matthew Taylor, 28, Marion, OH; Tyler Landrum, 26, Marion, OH; Dalton Gruber, 42, Marion, OH; Donovan Caskey, 28, Marion, OH; Crystal Rivers, 42, Green Camp, OH; Gerald Houseworth, 31, Marion, OH; Sheena Stolz, 34, Upper Sandusky, OH; Anthony Clark, 53, Marion, OH; Christina Weaver, 25, Marion, OH; Steven Mollet, 27, Marion, OH; Starla Artressia, 26, Marion, OH;

and separately,

Justin Stanley, 35, Marion, OH; Freddie Sanchez, 36, Lorain, OH; Christopher Payne, 24, Marion, OH; Dustin Russell, 32, Marion, OH; Walter Thomas, 41, Marion, OH; Austin Hogan, 29, Marion, OH; Kyle Rentschler, 26, Prospect, OH; Donna Wrick, 31, Marion, OH; Lawrence Dempster, 49, Marion, OH; Ryan Pheasant, 30, Marion, OH; Michael Cottrill, Jr., 22, Marion, OH; Casey Taylor, 47, Marion, OH; Derek Hesson, 29, Marion, OH; Jacob Martin, 28, Marion, OH; James Holsinger, Jr., 29, Marion, OH; Jason Smith, 47, Marion, OH; Jeffery Hall, 31, Marion, OH; and Dustin Freeman, 36, Marion, OH.

According to the indictments, between as early as on or about September 1, 2020, and continuing through on or about June 14, 2023, the defendants did knowingly and intentionally conspire with each other to distribute and possess with the intent to distribute a mixture and substance containing fentanyl, cocaine, cocaine base (“crack”), oxycodone, and methamphetamine.

The co-conspirators obtained fentanyl, cocaine, cocaine-base (“crack”), oxycodone, and methamphetamine from suppliers in Columbus, Ohio; Lorain, Ohio; and Marion, Ohio. The coconspirators concentrated their redistribution of these drugs in and around Marion, Ohio. During the investigation, law enforcement seized 3 kilograms of fentanyl, 2 kilograms of cocaine, over 1 kilogram of methamphetamine, 15 firearms, and $25,546 in U.S. Currency.

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.

For the past two and a half years, Marion-Metrich (MARMET) Drug Task Force and FBI Mansfield investigated the drug trafficking activities of the Justin Stanley DTO and the Christopher Payne DTO. Investigators and law enforcement officers of the Marion Police
Department, Marion County Sheriff Office, Morrow County Sheriff Office, Lorain Police Narcotics Unit, Wyandot County Major Crimes Unit, Marion County Prosecutor’s Office, and U.S. Marshal Service assisted in the investigation.

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.

This case is being prosecuted by Assistant U.S. Attorney Vasile C. Katsaros.

YOUNGSTOWN – Robert J. Rohrbaugh, 49, of Canfield, Ohio, was sentenced today to 52 months in prison by U.S. District Judge Bonita Pearson for engaging in a conspiracy to help two men illegally obtain more than $1.3 million from the IRS. Rohrbaugh was also ordered to serve 3 years of community control, pay a $400 special assessment, and pay restitution in the amount of $1,352,779 to the IRS.

“Today’s sentence sends a clear message that if you steal from the public by cheating the IRS, you will be investigated and prosecuted,” said U.S. Attorney Rebecca C. Lutzko, “the United States Attorney’s Office remains committed to ensuring the integrity of our revenue stream funded by good, honest, tax paying citizens.”

“The defendants in this case went to great lengths to steal in excess of $1.3 million from the government,” said Carilyn Peters, Acting Assistant Special Agent in Charge, IRS, Criminal Investigation. “The sentencings in this case reaffirm that if you participate in these types of tax refund fraud schemes, you will likely go to jail.”

Rohrbaugh was convicted of conspiracy to commit offenses against the United States, aiding and abetting theft of government property, aiding and abetting false claims against the United States, and conspiracy to commit money laundering.

According to court documents and evidence presented at trial, Rohrbaugh, a Youngstown-area attorney, assisted co-conspirators Brandon Mace and Terris Chanley Baker with obtaining a tax refund check for a fictitious business in the amount of $1,352,779.

Court documents state that in early 2015, Mace and Baker obtained a bogus tax refund check for a fictitious business by using fabricated tax forms and listing false taxes and expenditures that showed significant tax overpayments. After obtaining the refund check, Mace and Baker then contacted and worked with Rohrbaugh to deposit the check in accounts owned by the defendants.

During the trial, prosecutors presented evidence that Rohrbaugh assisted Mace and Baker with the scheme even though he was aware that the two had obtained the refund from an illegitimate business based on false tax returns.

According to court documents, after cashing the refund check, Mace and Baker attempted to launder the money by purchasing several high-end and luxury vehicles. In addition, evidence showed that Mace and Baker used $150,000 of the refund check to pay Rohrbaugh for his services.

Co-defendant Brandon Mace pleaded guilty in September 2020 to his role in the scheme and was sentenced to 60 months in prison in February 2023. Co-defendant Terris Chanley Baker was convicted by a jury for his role in April 2022 and was sentenced to 98 months in prison in April 2023.

This case was investigated by IRS Criminal Investigation (CI). This case is being prosecuted by Assistant U.S. Attorneys Megan R. Miller and Erica D. Barnhill.

TOLEDO – Former Toledo City Councilman Garrick “Gary” Johnson, 61, was found guilty of Hobbs Act Extortion Under Color of Official Right by a jury after a four-day trial before U.S. District Judge Jeffrey Helmick. The jury acquitted Mr. Johnson of a similar count related to a different special use permit in the same Superseding Indictment.

According to court documents and testimony, a friend of a FBI source applied for a special use permit to open an internet café on Secor Road in Toledo, Ohio. The source then paid former Councilman Johnson $2,000 in return for his support of the special use permit. The special use permit ultimately failed to garner the required votes in City Council. “The United States Attorney’s Office will continue to make the prosecution of public corruption a priority,” said United States Attorney Rebecca C. Lutzko. “Public officials who betray the trust of those they serve will be aggressively pursued and held accountable.”

“Investigating matters of Public Corruption is one of the highest priorities of the FBI,” said FBI Cleveland Special Agent in Charge Gregory Nelsen. “Upholding public trust, especially as an elected official, is paramount. The FBI will continue to protect the American Public by ensuring the people who are elected to serve are virtuous in their conduct.”

No sentencing date has been set.

This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Jody King and Gene Crawford.

CLEVELAND – Alfonzo Bailey, 40, of Euclid, Ohio, was sentenced today to 36 months in prison by U.S. District Judge Pamela A. Barker, after he pleaded guilty to conspiracy to commit healthcare fraud. Bailey was also sentenced to 3 years of supervised release, a $100 special assessment, and restitution of $3,465,643.33.

According to court documents and today’s sentencing hearing, Bailey founded Eye for Change Youth and Family Services in 2016 and provided a wide range of services to clients such as mental health counseling, case management, job training, and supportive housing. Beginning in 2017, Bailey and his defendants conspired together to execute a scheme to defraud The Ohio Department of Medicaid by obtaining payments on false claims. To execute the scheme, Bailey encouraged his staff to create false progress notes for counseling services not actually rendered to patients in order to bill the Ohio Department of Medicaid. Search warrants were executed at Eye for Change Youth and Family Services in 2020 which led to the indictments of 21 defendants including Bailey.

The investigation was conducted by the Federal Bureau of Investigation (FBI), Cleveland, the Department of Health and Human Services - Office of the Inspector General (HHS-OIG) and the Ohio Attorney General’s Healthcare Fraud Section. This case was prosecuted by Assistant U.S. Attorneys Michael Collyer and Edward Brydle as well as Special Assistant U.S. Attorney Jonathan Metzler.

CLEVELAND – Thomas H. Hissong, 58, of Akron, Ohio, was sentenced Friday to 12 months and a day in prison by U.S. District Solomon Oliver, Jr. after Hissong pleaded guilty to a five count indictment that charged him with wire fraud. Hissong was also ordered to pay $552,850 in restitution to the victim investors and a fine of $2,000.

According to court documents and today’s sentencing hearing, Hissong was a former registered broker. From in or around May 2016 to in or around May 2018, Hissong pitched an investment opportunity to investors to buy shares in Plasma Ignitor, a new spark plug technology, but failed to disclose that he would receive a commission on the sales of the shares. Hissong wrongfully withheld $552,850 of the investors’ monies.

This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Brian M. McDonough.

CLEVELAND – Rebecca C. Lutzko was sworn in today as the interim United States Attorney for the Northern District of Ohio by United States District Judge Patricia Anne Gaughan at the federal courthouse in Cleveland.

“As a career federal prosecutor, I am honored to be selected to lead our dedicated team as we continue working toward making the Northern District a safer and better place to live, and carrying out the mission of the Department of Justice,” said interim United States Attorney Lutzko. “I want to thank President Biden for my nomination, Senators Brown and Vance for their support, and the District Judges of our court for their vote of confidence in me as the confirmation process proceeds through the Senate.”

Lutzko was nominated by President Joseph R. Biden on June 7, 2023, and was installed by the United States District Judges in the Northern District of Ohio pending her Senate confirmation. As the interim United States Attorney, Lutzko will supervise the prosecution of federal crimes in the district, including crimes related to public corruption, civil rights violations, white collar crime, child exploitation, terrorism, firearms offenses, narcotics offenses, and more. The office also defends the United States in civil cases and collects debts owed to the United States. The office covers Ohio’s northern 40 counties, which includes Cleveland, Toledo, Akron and Youngstown, and has a staff of approximately 166 employees.

Lutzko has served the district as an Assistant United States Attorney since 2005. In this capacity, she has held several leadership and line assistant positions in the office, serving as Chief of the Appeals Unit since 2017 and previously serving as Deputy Chief of the Major Fraud and Corruption Unit from 2010 to 2011.

Before becoming an Assistant United States Attorney, Lutzko was an associate at BakerHostetler in Cleveland from 1998 to 2005. She also served as a law clerk for Judge Alice M. Batchelder of the United States Court of Appeals for the Sixth Circuit from 1997 to 1998.

Lutzko received her J.D., cum laude, from Georgetown University Law Center in 1997 and her B.A., magna cum laude, from Boston University in 1993.

CLEVELAND – Deven Smith, 44, of Cleveland, Ohio, was sentenced on Wednesday, May 31, 2023, to 211 months in prison by U.S. District Judge Sara Lioi after he pleaded guilty to possession with intent to distribute cocaine and methamphetamine, carrying a firearm during a drug trafficking crime, and being a felon in possession of a firearm and ammunition.

According to court documents, on July 15, 2021, Cleveland Police Safe Streets Task Force initiated a traffic stop of a 2008 Audi Q7 that was parked and running in the area of East 79th Street and St. Clair Avenue in Cleveland. When officers approached the driver, Deven Smith, they observed a bag of suspected controlled substance on the front passenger seat, several clear plastic bags on Smith’s lap, and a digital scale in the center console. Smith admitted to officers that he also had a firearm in the vehicle. A search of the vehicle revealed a Ruger, model P345 .45 caliber pistol between the driver’s seat and the center console. Officers also located just over 10 grams of cocaine base, almost 30 grams of cocaine, methamphetamine and two cell phones. Smith is prohibited under federal law from possessing a firearm due to previous felony convictions.

The investigation was conducted by the Cleveland Police Department and the Federal Bureau of Investigation.

This case was prosecuted by Assistant United States Attorney Scott Zarzycki.

AKRON – Justin Bush, 35, of Canton, Ohio, was sentenced to 96 months imprisonment on Wednesday, May 31, 2023 by U.S. District Judge Sara Lioi after he pleaded guilty to racketeering conspiracy, conspiracy to possess with intent to distribute narcotics, and to distributing narcotics. Bush was also ordered to pay a $300 Special Assessment and serve 3 years of supervised release after release from imprisonment.

According to court documents, Bush was a member of the Shorb Blocc gang that was responsible for violent street crimes including shootings and robberies as well as drug distribution in Canton, Ohio for much of the last decade. Bush was a long-term member of the Shorb Blocc gang and took part in criminal activities supporting the gang such as shooting at rival gang members and selling narcotics, specifically fentanyl.

The investigation was conducted by the Canton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). This case was prosecuted by Assistant United States Attorneys Robert Corts, Vasile Katsaros and Toni Beth Schnellinger Feisthamel.

CLEVELAND – Cuyahoga County Medical Examiner Dr. Thomas Gilson, today issued a public health alert, stating that Cuyahoga County suffered at least 5 suspected overdose deaths within a 12-hour-period on June 1, 2023.
“Drug overdose continues to be a problem in our community with periodic clusters of deaths like yesterday,” Dr. Gilson warned. “Individuals should avoid using illicit drugs or use a harm reduction plan in the event they are unable to stop using. Treatment can help with long-term sobriety.”

Death Date Month Death Date Day Death Day Year Sex (AFAB/AMAB) Age Hispanic Race Residence City 06 01 2023 Male 38 No White Broadview Heights 06 01 2023 Female 32 Yes White Cleveland 06 01 2023 Male 63 Yes White Cleveland 06 01 2023 Male 52 No White Cleveland 06 01 2023 Female 70 No White Parma

Consider developing a personal harm reduction plan if you or anyone that you know is actively using or recovering from opioid addiction. Harm reduction plans can include the following: • Have Naloxone and fentanyl test strips ready. Naloxone and fentanyl test strips will work with most fentanyl analogues.
• Don’t use drugs alone. There is a much higher risk of fatally overdosing if another person is not monitoring.
• Sit upright. Sitting upright can reduce the risk of slumping forward in an overdose – potentially causing airway obstruction.
• Call 911 (Good Samaritan). The Good Samaritan Law provides immunity for a minor drug possession or drug paraphernalia offense for the person who overdosed and the person who called 911 to seek help.
• Seek Treatment. As with most chronic diseases, addiction is treatable. While treatment may vary upon an individual’s needs, recovery is possible.
For a list of community resources, please visit: https://www.testyourdrugscc.com
 

CLEVELAND – Nicholas D. Geer, 26, of Euclid, Ohio, was found guilty on all counts by a jury after a three-day trial before U.S. District Judge J. Philip Calabrese in Cleveland yesterday. Geer was convicted of seven counts of possession with intent to distribute various drugs and two firearms charges. Specifically, Geer was found guilty of possession with intent to distribute fentanyl, acetyl fentanyl, fluorofentanyl, heroin, cocaine and cocaine base and for being a felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime.

According to court documents and evidence presented in court a search warrant was executed at a house Geer was staying at in Cleveland Heights. During the search, agents seized various quantities of drugs and a loaded .40 caliber handgun in the kitchen of the residence. Geer was discovered hiding in a closet in the basement. Law enforcement had previously conducted two controlled drug purchases from Geer, one at that residence. Geer is prohibited under federal law from possessing a firearm due to previous felony convictions.

The investigation was conducted by the Drug Enforcement Administration (DEA), the Cleveland Heights Police Department, and the Euclid Police Department. This case is being prosecuted by Assistant United States Attorneys Vanessa Healy and Robert Kolansky.

AKRON – Devonn Fair, 31, of Cleveland, Ohio, was sentenced on Thursday, June 1, 2023, to 420 months or 35 years in prison by U.S. District Judge John R. Adams after he pleaded guilty to conspiracy to distribute and possession with intent to distribute controlled substances, possession with intent to distribute fentanyl, conspiracy to launder monetary instruments, money laundering, and being a felon in possession of a firearm and ammunition.

According to court documents, Fair was one of the leaders of a large-scale fentanyl trafficking organization that operated on the east side of Cleveland from September of 2019 to February of 2022. The Fair drug trafficking organization distributed fentanyl at several residences throughout the east side of Cleveland which drew customers from as far away as Medina, Wayne, and Lorain Counties. Fair and his organization profited from their crimes and laundered those profits with the purchase of expensive clothing, jewelry, and vehicles. In addition, Fair was prohibited under federal law from possessing a firearm due to previous felony convictions.

Fair was ordered to forfeit the unlawful proceeds of his crimes which included jewelry, $68,922 in U.S. Currency, and three vehicles.

The investigation preceding the indictment was conducted by the Federal Bureau of Investigation’s Cartel, Gang, Narcotics, and Laundering Task Force (CGNL), and the Internal Revenue Service Criminal Investigation Division (IRS-CID) 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. Marshal’s Service, the DEA, and the Cuyahoga County Regional Forensic Science Laboratory. This case was prosecuted as part of the Organized Crime Drug Enforcement Task Force (OCDETF) national program.

This case was prosecuted by Assistant United States Attorneys James Lewis and Joseph Dangelo.

CLEVELAND – Aydin Kalantarov, 38, of Willoughby Hills, Ohio, was sentenced yesterday to 33 months in prison by U.S. District Judge Pamela A. Barker, after he pleaded guilty to defrauding the Small Business Administration (“SBA”) of approximately $1.2 million in Economic Injury Disaster Loan (“EIDL”) program under Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Kalantarov was also sentenced to 3 years of supervised release, a $200 special assessment, and agreed to pay up to $1.2 million in restitution.

According to court documents, from May 2020 through October 2020, Kalantarov, along with his two brothers, Zaur Kalantarli and Ali Kalantarli, conspired to defraud the SBA of nearly $7 million in EIDL loans. As part of the scheme the brothers created 70 fictious Ohio corporations with agriculture sounding names, such as “Ohio Almonds and Peanuts” and “Ohio Organic Carrots”.
Once the fictitious corporations were created, the brothers submitted fraudulent EIDL loan applications to the SBA claiming that their business was adversely affected by the pandemic. The SBA funded 47 of the applications for a total of approximately $7 million. Kalantarov personally received $1.2 million in fraud loan proceeds. He used most of his funds to purchase a house in
California.

Zaur Kalantarli and Ali Kalantarli remain at large.

The investigation was conducted by the U.S. Treasury Inspector General for Tax Administration (“TIGTA”), the Federal Bureau of Investigation (“FBI”), Cleveland, the IRS Criminal Investigation (“IRS-CI”), the U.S. Department of Agriculture, Office of Inspector General (“USDA-OIG), and the Small Business Administration, Office of Inspector General (“SBAOIG”). This case was prosecuted by Assistant U.S. Attorney Brad J. Beeson.

TOLEDO - First Assistant United States Attorney Michelle M. Baeppler announced that a federal jury convicted Kevin A. Clay, age 39, of Perrysburg, Ohio of conspiracy, healthcare fraud, and making a false statement on an application for charitable tax-exempt status with the IRS on Wednesday, May 24, in Toledo, Ohio following a 4-day trial before Judge Jack Zouhary.

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 approximately $15,000 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.

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. Attorneys Jody L. King and Gene Crawford.

CLEVELAND – Richard Gould, 67, of Strongsville, Ohio, was sentenced on Tuesday, May 23, 2023, to seven days in prison by U.S. District Judge J. Philip Calabrese after Gould pleaded guilty to a two-count indictment that charged him with making and subscribing false tax returns.

According to court documents, during the tax years of 2014 to 2016, Gould was employed as Chief Operating Officer (“COO”) of Summit Pain Specialists (“SPS”), a pain management clinic. During his time at the pain clinic, as COO for SPS, Gould directed employees to issue checks, direct deposits, and bank transfers directly to him to ensure he was treated as an independent contractor rather than as an employee. Gould prepared the joint individual federal income tax returns that he and his wife electronically filed with the IRS for 2014 and 2015 The IRS determined the tax returns to be fraudulent because Gould listed himself as unemployed and did not report any of his taxable income during those years SPS closed in 2016 due to allegations of sexual assault and medical misconduct by its doctors.

Gould failed to report $469,640.56 of income for tax years 2014 and 2015, resulting in $184,195 in additional tax owed to the IRS.
This case was investigated by IRS Criminal Investigations (CI) and was prosecuted by Assistant U.S. Attorney Brian M. McDonough.

CLEVELAND – Jeffrey Sutton, 65, of Niles, Ohio, was sentenced today to 72 months in prison by U.S. District Judge Christopher A. Boyko, after he pleaded guilty to illegally prescribing patients opioids and other controlled substances, illegally distributing controlled substances and healthcare fraud. Sutton was also sentenced to 3 years of supervised release, a $5,200 special assessment, a $20,000 fine, and restitution of $148,870.79.

According to court documents, from January 2015 through January 2022, Sutton knowingly prescribed medically unnecessary controlled substances to patients outside of the usual course of professional practice and without legitimate medical purpose. In doing so, Sutton fraudulently billed health care benefit programs for office visits and the controlled substances illegally dispensed.

Sutton also admitted to engaging in sexual acts with patients to whom he directly prescribed controlled substances, including during office visits. He also admitted to delivering dozens of oxycodone pills to the home of one of his patients with whom he was engaged in a relationship, outside the course of treatment and without a valid prescription.

The investigation was conducted by the Cleveland offices of the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), and the Department of Health and Human Services - Office of the Inspector General (HHS-OIG), and by the State of Ohio Board of Pharmacy. This case was prosecuted by Assistant U.S. Attorney Elliot Morrison.

WASHINGTON – The Department of Justice, FBI, U.S. Postal Inspection Service, and other federal law enforcement agencies announced today the completion of a three-month campaign that disrupted networks used by foreign fraudsters to obtain fraud proceeds. Multiple law enforcement actions addressed conduct by individuals sometimes referred to as “money mules,” who have been providing critical services to fraudsters by receiving money from fraud victims and forwarding the fraud proceeds to the perpetrators (many of whom are based overseas). Some individuals knew they were facilitating fraud. Others first interacted with fraudsters as victims and may have been unaware that their activity furthered criminal activity.

Over approximately the last three months, law enforcement took over 4,000 actions against individuals responsible for facilitating a range of fraud schemes. These schemes included those that targeted consumers, such as lottery fraud and romance scams, as well as those that targeted businesses or pandemic funds.

The thousands of actions taken by law enforcement—which ranged from criminal prosecutions, to civil actions, to warning letters—were designed to punish those who knowingly assisted fraudsters and to advise those who may have been unknowingly helping fraudsters that their conduct furthered crime. These actions are intended to deter overseas fraudsters from relying on U.S.-based individuals to facilitate schemes, and thereby reduce the harm caused by foreign fraud operations.

This year’s effort marked the fifth U.S. law enforcement campaign disrupting these money transmitting networks. Since the first campaign, during which approximately 400 actions were taken by law enforcement, agencies have collectively taken over 12,000 actions. Investigations have shown that disrupting money transmitting networks has impeded fraudsters’ abilities to receive funds, thereby reducing fraud victimization. These campaigns are part of a global effort to tackle money transmitting networks linked to illegal activity.

“Law enforcement is committed to reducing fraud using every tool at our disposal. Our efforts to disrupt networks used to transfer fraud proceeds, to educate the public about elder fraud, and to prosecute those involved in these schemes have stymied fraudsters,” said Associate Attorney General Vanita Gupta. “This initiative demonstrates what can be achieved through focused efforts and vigorous enforcement.”

“The money mule campaign was an effort to educate the public, disrupt criminal enterprises, and provide feedback to financial institutions who go to great lengths to implement anti-money laundering programs,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI values the partnership of DOJ Consumer Protection Branch, U.S. Postal Inspection Service, and other federal agencies who work together to disrupt criminal enterprises conducting fraud and money laundering schemes.”

“Anyone can be approached to be a money mule, but criminals often target students, those looking for work, and those on dating websites,” said Eric Shen, Inspector in Charge of the Criminal Investigations Group. “When those individuals use the U.S. Mail to send or receive funds from fraudsters, Postal Inspectors are quick to step in and put a stop to money mule activities.”

This year’s effort was coordinated by the Department of Justice’s Consumer Protection Branch, the FBI, and the U.S. Postal Inspection Service, which were joined by Homeland Security Investigations, the Department of Labor Office of Inspector General, and the Small Business Administration Office of Inspector General. Participating agencies collectively served over 4,000 letters warning individuals that their activities are facilitating fraud. These letters outlined the potential consequences for continuing to transmit illegally acquired funds. Participating agencies also filed twelve civil or administrative actions. Additionally, more than 25 individuals were criminally charged for knowingly receiving and forwarding victim funds or otherwise laundering fraud proceeds.

• The U.S. Attorney’s Office for the District Massachusetts charged a defendant for using his accounting and “virtual CFO” business as a front to launder the proceeds of internet fraud schemes. As part of the alleged conspiracy, the defendant created dozens of shell companies and used those shell companies to open business bank accounts in Rhode Island and Massachusetts, through which the defendant laundered the criminal proceeds for his clients in exchange for fees. In total, since 2019, the defendant is alleged to have opened approximately 80 bank accounts (purportedly on behalf of 65 different companies), laundering approximately $35 million.
• The U.S. Attorney’s Office for the Western District of North Carolina charged an individual for facilitating an international, multi-million-dollar tech support fraud. The indictment alleged that the defendant agreed to obtain payment-processing services in his name to process victim payments and laundered the proceeds domestically and internationally to bank accounts located in India, receiving three percent of the revenue in return.
• The U.S. Attorney’s Offices for the Central District of California and the District of Nebraska charged individuals who, despite warnings from law enforcement, continued facilitating fraud. In the Central District of California, an individual was charged for her role in receiving funds from fraud victims, including victims of business email compromises. According to the charges, the defendant opened 11 bank accounts at seven separate financial institutions in furtherance of the scheme. In the District of Nebraska, two individuals were charged for facilitating a lottery fraud scheme, including by receiving cashier’s checks in the mail.

Criminal charges are merely allegations. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

As in past years, participating agencies are working to raise awareness about how fraudsters recruit and use individuals to assist their fraud operations. Federal agencies conducted outreach to the public and industry, and also expanded partnerships with local, state, and foreign law enforcement agencies. The Commodities Futures Trading Commission released a public awareness message about how fraudsters use and recruit people to facilitate romance fraud and “wrong number” text message scams, where fraudsters strike up conversations touting their wealth and success in trading crypto assets, over-the-counter foreign currency, or gold contracts to try and convince consumers to “invest” in crypto assets.

The agencies involved in this effort urge consumers to be on the lookout for signs someone is trying to recruit them to receive and transmit fraud proceeds. Do not agree to receive money or checks mailed to you or sent to your bank account for someone you have met over the phone or online. Do not open a bank or cryptocurrency account at someone else’s direction. Fraudsters will lie to persuade you to help them. They may falsely tell you that they are helping you get a lottery prize, initiate a purported romantic relationship and then tell you that they need money, or pretend to offer you a job, an opportunity to invest in a business venture, or the chance to help in a charitable effort.

For more information on this initiative, please visit www.justice.gov/civil/consumer-protection-branch/money-mule-initiative.

Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).

Information about the Department of Justice’s COVID-19 Fraud Enforcement Task Force is available at https://www.justice.gov/coronavirus.

For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch.

CLEVELAND – Javon Jonathan Spencer, 32, of Euclid, Ohio was sentenced yesterday to 18 months in prison by U.S. District Judge Benita Y. Pearson after he pleaded guilty to conspiracy to commit mail fraud and mail fraud. Spencer was also ordered to serve 3 years of supervised release after incarceration and pay a $400 special assessment. Additionally, the court ordered Spencer to pay restitution to his victims in the amount of $267,314.98.

Spencer, a Jamaican National, resided with his wife in Euclid, Ohio. The United States Postal Inspection Service conducted the investigation and found that Spencer was involved in a Jamaican Operations Linked to Telemarketing (“JOLT”) fraud scheme that targeted elderly victims. In the JOLT scheme, scammers contacted the targeted individuals via mail or telephone and informed the victims that they won a lottery or sweepstakes, such as the Publishers Clearinghouse Sweepstakes. However, to claim and receive the money, the victims would need to pay upfront fees or taxes.

This case was investigated by the Postal Inspection Service and prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Joseph P. Dangelo.

TOLEDO – Zachary Ryan Balusik, 41, of Toledo, Ohio, was sentenced on Tuesday, May 16, 2023, to 168 months in prison by U.S. District Judge James R. Knepp, after he pleaded guilty to receipt and distribution of child pornography. Balusik was also sentenced to a lifetime of supervised release, $100 special assessment and ordered to pay restitution of $12,000.

According to court documents, Balusik was identified entering online chat rooms that involved streaming videos depicting the sexual exploitation of children.

On February 23, 2022, a search warrant was executed at Balusik’s residence in Toledo, Ohio where electronic devices were seized and found to contain child pornography. This child pornography depicted prepubescent children. Balusik, who was a supervisory nurse at a local hospital, admitted to investigators that he had been downloading and viewing child pornography for more than ten years.

The investigation was conducted by the Federal Bureau of Investigation in Toledo, Ohio. This case was prosecuted by Assistant U.S. Attorney Tracey Tangeman and Department of Justice Trial Attorney Charles Schmitz.

CLEVELAND – Thomas J.D. Williams, 19, of Maple Heights, Ohio, was sentenced on Monday, May 8, 2023, to 15 years in prison by U.S. District Judge James S. Gwin after he pleaded guilty to three counts of carjacking and two counts of possession of a firearm in furtherance of a crime of violence.

Donteze Congress, 19, of Maple Heights, Ohio, was sentenced on Tuesday, May 9, 2023, to 15 years in prison by U.S. District Judge James S. Gwin after he pleaded guilty to three counts of carjacking and two counts of possession of a firearm in furtherance of a crime of violence.

According to court documents, in three separate incidents on August 9, 2022, Congress, Williams, and co-defendant Kenneth Franklin used firearms and threats of violence to steal vehicles. During two of the armed carjacking incidents, court documents say that the defendants, riding together in a vehicle, intentionally crashed their vehicle into the rear of the victim’s vehicle to cause a minor traffic incident. In the third incident, the defendants followed the victim’s vehicle to a shopping center parking lot.

Court documents state that on each occasion, as the victim exited their vehicle, they were confronted by two or three of the carjackers brandishing firearms, threatening violence, and demanding the keys to the vehicle.

Court documents state that later that day, officers with the Solon Police Department, along with assistance from other jurisdictions, located Williams driving in one of the stolen vehicles. Williams was later arrested and found to be in possession of a victim credit card and a loaded pistol.

Co-defendant Kenneth Franklin is scheduled to be sentenced on June 5, 2023.

The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, Solon Police Department, Cuyahoga Falls Police Department, Streetsboro Police Department, and the Garfield Heights Police Department.

This case was prosecuted by Assistant United States Attorneys Peter E. Daly and Christopher J. Joyce.

CLEVELAND – Alex R. Andrus, 31, of Akron, Ohio, was sentenced on Tuesday, May 9, 2023, to 115 months in prison by U.S. District Judge Dan Aaron Polster after he pleaded guilty to possession with intent to distribute fentanyl and methamphetamine and being a felon in possession of a firearm and ammunition.

According to court documents, during the execution of a search warrant at Andrus’ Akron home on March 8, 2022, Andrus possessed fentanyl and more than 200 pills containing methamphetamine, which he intended to sell to drug customers, as well as a loaded pistol. Andrus is prohibited under federal law from possessing a firearm due to previous felony convictions.

The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Akron Police Department.

This case was prosecuted by Assistant United States Attorney Peter E. Daly.

TOLEDO - A federal jury in Northern District of Ohio convicted Michael J. Zacharias, a priest, of five counts of sex trafficking. The charges related to three victims, two of whom Zacharias trafficked when they were minors and as adults. The evidence presented to the jury detailed how Zacharias paid the victims to engage in sex acts with him using the victims’ fear of serious harm to compel their compliance.

Specifically, the jury heard evidence of how Zacharias first met the victims when they were young boys, and he was a Seminarian at St. Catherine’s Catholic Parish school in Toledo, Ohio, and how Zacharias began grooming the boys for commercial sex acts, using his position as a priest and teacher to ingratiate himself with the boys and their families as a trusted friend, mentor and spiritual counselor. The defendant overcame the victims’ resistance to his eventual commercial sex overtures by gradually sexualizing conversations and conduct with them. At the same time, the victims were developing serious opiate addictions, using pain medication and, later, heroin. Zacharias waited to propose commercial sex until he knew the victims were so heavily involved in drug abuse that it was impacting their daily lives, physical and mental well-being and ability to maintain a stable school or work life.   

The victims’ testimony explained how, in varying degrees, they submitted to Zacharias’ commercial sex solicitations because they feared the psychological harm of losing Zacharias as a father figure and friend, losing their connection to the Church and God, and suffering the painful symptoms of opioid withdrawal that could be alleviated with the money provided by Zacharias to purchase drugs. One victim in particular – the older brother of another victim – also explained how he feared Zacharias would sexually abuse his minor brother and others if he did not continue to comply with the defendant’s commercial sex solicitations.

“This defendant betrayed the victims in the most inhumane way,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “He robbed them of their childhood, their dignity and their faith. He inflicted cruel psychological harm, preying on their fears and forcing them to choose between submitting to commercial sex acts, or incurring the pain of losing a father figure or counselor, suffering withdrawal sickness, and risking sexual abuse of a loved one. The Justice Department will vigorously prosecute human trafficking crimes to hold offenders like Michael Zacharias accountable and bring justice to their victims.”

“This verdict sends a clear message to those who prey upon children by using positions of trust to further their crimes,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “Our office will continue to protect our children by aggressively prosecuting child predators who engage in sex trafficking.”

“The defendant not only abused his victims, but also betrayed the trust placed in him by the congregation and those who dutifully serve parishes across the country,” said Special Agent in Charge Gregory Nelsen of the FBI Cleveland Field Office. “The FBI is committed to finding and investigating child predators, so no other people become victim to deceitful and abhorrent behavior.”

Sentencing has not yet been scheduled. Zacharias faces a fifteen-year mandatory minimum and lifetime maximum sentence. Restitution in this case is mandatory under the law.

Assistant Attorney General Clarke and First Assistant U.S. Attorney Baeppler made the announcement. 

The Lima and Toledo Resident Agencies of the FBI Cleveland Field Office 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 are prosecuting the case.

A federal jury in Northern District of Ohio convicted Michael J. Zacharias, a priest, of five counts of sex trafficking. The charges related to three victims, two of whom Zacharias trafficked when they were minors and as adults. The evidence presented to the jury detailed how Zacharias paid the victims to engage in sex acts with him using the victims’ fear of serious harm to compel their compliance.

Specifically, the jury heard evidence of how Zacharias first met the victims when they were young boys, and he was a Seminarian at St. Catherine’s Catholic Parish school in Toledo, Ohio, and how Zacharias began grooming the boys for commercial sex acts, using his position as a priest and teacher to ingratiate himself with the boys and their families as a trusted friend, mentor and spiritual counselor. The defendant overcame the victims’ resistance to his eventual commercial sex overtures by gradually sexualizing conversations and conduct with them. At the same time, the victims were developing serious opiate addictions, using pain medication and, later, heroin. Zacharias waited to propose commercial sex until he knew the victims were so heavily involved in drug abuse that it was impacting their daily lives, physical and mental well-being and ability to maintain a stable school or work life.   

The victims’ testimony explained how, in varying degrees, they submitted to Zacharias’ commercial sex solicitations because they feared the psychological harm of losing Zacharias as a father figure and friend, losing their connection to the Church and God, and suffering the painful symptoms of opioid withdrawal that could be alleviated with the money provided by Zacharias to purchase drugs. One victim in particular – the older brother of another victim – also explained how he feared Zacharias would sexually abuse his minor brother and others if he did not continue to comply with the defendant’s commercial sex solicitations.

“This defendant betrayed the victims in the most inhumane way,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “He robbed them of their childhood, their dignity and their faith. He inflicted cruel psychological harm, preying on their fears and forcing them to choose between submitting to commercial sex acts, or incurring the pain of losing a father figure or counselor, suffering withdrawal sickness, and risking sexual abuse of a loved one. The Justice Department will vigorously prosecute human trafficking crimes to hold offenders like Michael Zacharias accountable and bring justice to their victims.”

“This verdict sends a clear message to those who prey upon children by using positions of trust to further their crimes,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “Our office will continue to protect our children by aggressively prosecuting child predators who engage in sex trafficking.”

“The defendant not only abused his victims, but also betrayed the trust placed in him by the congregation and those who dutifully serve parishes across the country,” said Special Agent in Charge Gregory Nelsen of the FBI Cleveland Field Office. “The FBI is committed to finding and investigating child predators, so no other people become victim to deceitful and abhorrent behavior.”

Sentencing has not yet been scheduled. Zacharias faces a fifteen-year mandatory minimum and lifetime maximum sentence. Restitution in this case is mandatory under the law.

Assistant Attorney General Clarke and First Assistant U.S. Attorney Baeppler made the announcement. 

The Lima and Toledo Resident Agencies of the FBI Cleveland Field Office 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 are prosecuting the case.

CLEVELAND - First Assistant United States Attorney Michelle M. Baeppler announced that a federal jury convicted Randall Hines, 32, of armed bank robbery, brandishing a firearm during the bank robbery, and for being a felon in possession of a firearm on May 11, 2023 in Cleveland following a four-day trial before Judge David A. Ruiz.

According to court documents and evidence presented at trial, Hines entered the Huntington Bank in Brooklyn, Ohio dressed in a turtleneck, covid mask, beanie, and hoodie in an attempt to conceal his identity and distinct neck tattoos. However, video surveillance from the bank and a nearby business captured Hines’ car parked a few blocks from the bank. Hines was arrested three days later and a search of his car revealed, tucked under the bench backseat, the gun Hines’ used in the bank robbery, loaded with ten rounds of ammunition.

The jury also was  resented with additional evidence obtained from Hines’ cellular telephone which established his movements before and after the bank robbery.

Hines will be sentenced on September 7, 2023 before Judge David A. Ruiz.

This case was investigated by the Federal Bureau of Investigation in Cleveland, Ohio, the Brooklyn, Ohio Police Department, the Parma Police Department and the Orange Police Department. The case is being prosecuted by Assistant U.S. Attorneys Bryson N. Gillard and Aaron P. Howell.

DETROIT – More than 3.8 million deadly doses of fentanyl and 201 pounds of methamphetamine were removed from communities in Michigan, Ohio and northern Kentucky during “Operation Last Mile,” a year-long national operation, targeting operatives, associates, and distributors affiliated with the Sinaloa and Jalisco Cartels responsible for the last mile of fentanyl and methamphetamine distribution on our streets and on social media.

DEA’s top operational priority is to defeat the Sinaloa and Jalisco Cartels—the two drug cartels based in Mexico that are responsible for the vast majority of the fentanyl and methamphetamine that is killing Americans. In Operation Last Mile, DEA tracked down distribution networks across the United States that are connected to the Sinaloa and Jalisco Cartels. The Operation shows that the Sinaloa and Jalisco Cartels use violent local street gangs and criminal groups and individuals across the United States to flood American communities with huge amounts of fentanyl and methamphetamine, which drives addiction and violence and kills Americans. It also shows that the Cartels, their members, and their associates use social media applications—like Facebook, Instagram, TikTok, and Snapchat—and encrypted platforms—like WhatsApp, Telegram, Signal, Wire, and Wickr—to coordinate logistics and reach out to victims.

Nationally, Operation Last Mile comprised 1,436 investigations conducted from May 1, 2022 through May 1, 2023, in collaboration with federal, state and local law enforcement partners, and resulted in 3,337 arrests and the seizure of nearly 44 million fentanyl pills, more than 6,500 pounds of fentanyl powder, more than 91,000 pounds of methamphetamine, 8,497 firearms, and more than $100 million.

The fentanyl powder and pill seizures equate to nearly 193 million deadly doses of fentanyl removed from communities across the United States, which have prevented countless potential drug poisoning deaths. Among these investigations, more than 1,100 cases involved social media applications and encrypted communications platforms, including Facebook, Instagram, TikTok, Snapchat, WhatsApp, Telegram, Signal, Wire, and Wickr.

“The Sinaloa and Jalisco Cartels use multi-city distribution networks, violent local street gangs, and individual dealers across the United States to flood American communities with fentanyl and methamphetamine, drive addiction, fuel violence, and kill Americans,” said Administrator Milgram. “What is also alarming—American social media platforms are the means by which they do so. The Cartels use social media and encrypted platforms to run their operations and reach out to victims, and when their product kills Americans, they simply move on to try to victimize the millions of other Americans who are social media users.”

The Detroit Division, responsible for DEA operations in Michigan, Ohio and northern Kentucky, made 16 arrests and seized 20,636 fentanyl pills, 151 pounds of fentanyl powder, $5,809,597 in cash & assets, 201 pounds of methamphetamine and 360 firearms. The fentanyl seizures could provide a deadly dose to more than 3.8 million people.

Operation Last Mile is an example of DEA’s network-based approach to take out Sinaloa and Jalisco Cartel members and associates in the United States and across the globe, stop fentanyl, and save American lives. In April 2023, the DEA and our federal partners announced the indictment of 28 members and associates of the Sinaloa Cartel operating in Mexico, China, and Central America, including the leaders of the Cartel known as the “Chapitos.”

WASHINGTON – Today, the Department of Justice, and its Joint Criminal Opioid and Darknet Enforcement (JCODE) team and international partners, announced the results of Operation SpecTor, which included 288 arrests – the most ever for any JCODE operation and nearly double that of the prior operation. Law enforcement also conducted more seizures than any prior operation, including 117 firearms, 850 kilograms of drugs that include 64 kilograms of fentanyl or fentanyl-laced narcotics, and $53.4 million in cash and virtual currencies.

Operation SpecTor was a coordinated international effort spanning three continents to disrupt fentanyl and opioid trafficking on the darknet, or dark web. The operation was conducted across the United States, Europe, and South America, and was a result of the continued partnership between JCODE and foreign law enforcement against the illegal sale of drugs and other illicit goods and services on the darknet. Operation SpecTor builds on the successes of prior years’ operations and takedowns of marketplaces, which result in the seizure of darknet infrastructure providing investigators across the world with investigative leads and evidence. JCODE and Europol’s European Cybercrime Centre (EC3) continue to compile intelligence packages to identify entities of interest. These leads allow U.S. and international law enforcement agencies to identify darknet drug vendors and buyers, resulting in a series of coordinated, but separate, law enforcement investigations, resulting in the statistics announced today.

This year’s law enforcement operation was accompanied by a public awareness campaign called Operation ProtecTor aimed to promote public safety and spread awareness of resources for those struggling with substance abuse and who go through extreme lengths to obtain opioids. JCODE has worked with every FBI field office in the country to facilitate outreach to households that have purchased individual amounts of opioids from the darknet. The interagency efforts are aimed to both identify those who use anonymizing technologies to purchase illicit narcotics and direct them to available resources.

“Operation SpecTor was a coordinated international law enforcement effort, spanning three continents, to disrupt drug trafficking on the dark web and represents the most funds seized and the highest number of arrests in any coordinated international action led by the Justice Department against drug traffickers on the dark web,” said Attorney General Merrick B. Garland. “Our message to criminals on the dark web is this: You can try to hide in the furthest reaches of the internet, but the Justice Department will find you and hold you accountable for your crimes.”

“The availability of dangerous substances like fentanyl on dark net marketplaces is helping to fuel the crisis that has claimed far too many American lives,” said FBI Director Christopher Wray. “That's why we will continue to join forces with our law enforcement partners around the globe to attack this problem together. The FBI is proud to stand with our domestic and foreign partners as we continue to shine that light into the deepest corners of the dark net and hold those accountable who continue to peddle this poison around the world.”

“The Sinaloa and Jalisco drug cartels, and the global networks they operate are killing Americans by sending fentanyl into the United States. Their associates distribute this fentanyl into communities across America by every means possible, including the dark web,” said DEA Administrator Anne Milgram. “The DEA is committed to shutting down the fentanyl supply chain from beginning to end, and we will relentlessly pursue the associates of these cartels wherever they hide, even in the dark corners of the internet.”

“Our coalition of law enforcement authorities across three continents proves that we all do better when we work together,” said Executive Director Catherine De Bolle of Europol. “This operation sends a strong message to criminals on the dark web: international law enforcement has the means and the ability to identify and hold you accountable for your illegal activities, even on the dark web.”

“Collaboration with our law enforcement partners is key to combatting fentanyl and opioid trafficking,” said Chief Jim Lee of the IRS Criminal Investigation (IRS-CI). “Under the JCODE umbrella, law enforcement agencies across the globe have joined forces to take down criminals who use the darknet to buy and sell narcotics. Our team at IRS-CI plays an integral role in these investigations by following the money trail, whether it’s in fiat currency or digital assets on the blockchain.”

“The illicit movement of opioids poses a significant threat to public health and safety – whether by known transnational criminal gang members across international borders or anonymously through darknet spaces,” said Senior Official Performing the Duties of Deputy Director P.J. Lechleitner of Homeland Security Investigations (HSI). “Our HSI special agents, alongside federal and international partners, continue to aggressively investigate, disrupt, and dismantle networks responsible for trafficking dangerous, deadly narcotics and other contraband across global communities we are charged with protecting. We will continue to pursue bad actors engaged in these crimes to ensure they face justice, while protecting victims from these lethal substances.”

“The U.S. Postal Inspection Service leverages our specialized knowledge of the postal system as part of sophisticated dark web investigations such as Operation SpecTor with great results,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service. “We are committed to taking all necessary actions to combat illicit drugs in the mail. And we thank our law enforcement partners for working with us to achieve this; removing dangerous illicit substances from the mail and American communities saves lives.”

“Addressing our nation’s drug overdose crisis and epidemic of substance use disorders is an issue of great concern and remains a top public health priority for the U.S. Food and Drug Administration (FDA),” said Commissioner Robert M. Califf, M.D., of the FDA. “The FDA has undertaken strategic and impactful actions to prevent drug overdoses and reduce deaths and is committed to using all of our cyber-resources to shed light on the darkest corners of illicit medical supply chains for the health and safety of all Americans.”

Operation SpecTor resulted in over 100 federal operations and prosecutions, including:

• On Dec. 1, 2022, Anton Peck, 29, of Boca Raton, Florida, was sentenced to 16 years in prison for conspiring to possess with the intent to distribute controlled substances, including fentanyl, methamphetamine, and heroin. According to court documents, between May 2021 and May 2022, Peck distributed narcotics from various darknet markets using the vendor profile “Syntropy.” After the transactions were carried out using cryptocurrency, Peck and co-conspirators Kevin Fusco and Vincent Banner mailed parcels containing fentanyl, heroin, and methamphetamine to cities around the country using the U.S. Postal Service (USPS). Fusco, 35, of West Palm Beach, Florida, was sentenced to 11 years in prison for conspiring to distribute fentanyl, heroin, and methamphetamine. Banner, 31, of Boynton Beach, Florida, is scheduled to be sentenced on June 8 after pleading guilty to one count of conspiracy to possess with intent to distribute fentanyl, methamphetamine, and heroin. Law enforcement recovered kilogram quantities of fentanyl, cocaine, methamphetamine, and heroin from business and storage locations in West Palm Beach, Boca Raton, and New York City. Peck possessed a list of more than 6,000 customers living across the United States. The DEA, FBI, USPS Office of Inspector General (USPS-OIG), U.S. Postal Inspection Service (USPIS) and the Palm Beach County Sheriff’s Office investigated the case. The U.S. Attorney’s Office for the Southern District of Florida is prosecuting the case.
• On Nov. 18, 2022, a federal grand jury returned an indictment charging Christopher Hampton, 36, of Cerritos, California, with heading an organization that obtained bulk fentanyl, operated labs in California that used high-speed pill presses to create fake pills containing fentanyl and methamphetamine, and sold millions of pills to thousands of customers on the darknet. Hampton was named in an 11-count indictment that charges him with various narcotics and weapons offenses that could result in a sentence of life in prison. According to court documents, he was active on at least nine darknet marketplaces where he typically used the moniker “Narco710.” Hampton allegedly sold nearly $2 million worth of narcotics on two of these darknet marketplaces alone. He was arrested on Nov. 2, 2022, at which time federal law enforcement executed search warrants that led to the discovery and seizure of 450 pounds of suspected narcotics; six pill press machines, some of which were capable of producing thousands of pills per hour; and illegal firearms that included assault rifles and a machine gun. Agents later located a storage unit linked to the drug conspiracy and seized over 80 pounds of pressed fentanyl pills, eight guns, and precursor materials to press additional pills. The FBI JCODE and DEA HIDTA Tactical Diversion Squad investigated the case. The U.S. Attorney’s Office for the Central District of California is prosecuting the case.
• On May 12, 2022, a federal grand jury returned a two-count indictment charging Holly Adams, 31, and Devlin Hosner, 33, of Indio, California, with conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine, and with conspiracy to launder money. According to court documents, Adams and Hosner operated the vendor accounts “igogrrawwr” and “its4real” on the darknet marketplaces ToRReZ and Darkode, respectively, through which they sold tens of thousands of counterfeit oxycodone pills containing fentanyl in exchange for cryptocurrency. Adams and Hosner shipped these fentanyl pills to buyers throughout the United States, using the USPS, UPS, and other means of delivery. In the course of their conspiracy, Adams and Hosner finalized over 1,100 transactions of narcotics and other contraband and received more than $800,000 in cryptocurrency. Federal law enforcement officers executed a search warrant at a hotel in Riverside county where Adams and Hosner were residing and recovered more than 10,000 counterfeit oxycodone pills as well as approximately 60 grams of methamphetamine. The IRS-CI, HSI, FBI, USPIS, and USPS-OIG investigated the case. The U.S. Attorney’s Office for the Eastern District of California is prosecuting the case.

Operation SpecTor was a collaborative initiative across JCODE members, including the Department of Justice, FBI, DEA, USPIS, HSI, IRS-CI, ATF, Naval Criminal Investigative Service (NCIS), and the FDA’s Office of Criminal Investigations. This operation was aided by non-operational supporting participation from the Financial Crimes Enforcement Network (FinCEN) and U.S. Customs and Border Protection (CBP). Local, state, and other federal agencies also contributed to Operation SpecTor investigations through task force participation and regional partnerships. The investigations leading to Operation SpecTor were significantly aided by support and coordination by the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF); multi-agency Special Operations Division; the Criminal Division’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section’s Digital Currency Initiative, Narcotic and Dangerous Drug Section, and Fraud Section; the Justice Department’s Office of International Affairs; Europol and its Dark Web team; and international partners. The international partners include Eurojust; Austria’s Federal Criminal Police Office (Bundeskriminalamt); France’s Directorate-General of Customs and Indirect Taxes (Douane); Germany’s Federal Criminal Police Office (Bundeskriminalamt), Central Criminal Investigation Department of Oldenburg (Zentrale KriminaIinspektion Oldenburg), General Prosecutor’s Office in Frankfurt/Main - Cybercrime Center (Generalstaatsanwaltschaft Frankfurt/Main, Zentralstelle zur Bekämpfung der Internetkriminalität), Berlin Police (Polizei Berlin), various police departments (Dienststellen der Länderpolizeien), German Customs Investigation (Zollfahndungsämter); the Netherland’s National Police (Politie); Poland’s Central Cybercrime Bureau (Centralne Biuro Zwalczania Cyberprzestępczości); Brazil’s Civil Police of the State of Piauí (Polícia Civil do Estado do Piauí), Civil Police of the Federal District (Polícia Civil do Distrito Federal), National Secretariat of Public Security - Directorate of Integrated Operations and Intelligence - Cyber Operations Laboratory (Laboratório de Operações Cibernéticas da Diretoria de Operações Integradas e de Inteligência - Secretaria Nacional de Segurança Pública); Switzerland’s Zurich Cantonal Police (Kantonspolizei Zürich) and Public Prosecutor’s Office II of the Canton of Zurich (Staatsanwaltschaft II); and the United Kingdom’s National Crime Agency (NCA) and National Police Chief’s Council (NPCC).

Federal investigations and prosecutions are being conducted in more than 30 federal districts, including the District of Arizona, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the District of Columbia, the District of Delaware, the Southern District of Florida, the Northern District of Georgia, the Southern District of Indiana, the Eastern District of Kentucky, the District of Maryland, the District of Massachusetts, the Eastern District of Michigan, the Western District of Michigan, the Eastern District of Missouri, the Western District of Missouri, the District of Nebraska, the District of Nevada, the District of New Jersey, the Eastern District of New York, the Southern District of New York, the Western District of North Carolina, the Northern District of Ohio, the Southern District of Ohio, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Dakota, the Eastern District of Tennessee, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the District of Vermont, the Eastern District of Virginia, and the Western District of Washington.

The Justice Department established the FBI-led JCODE team to lead and coordinate government efforts to detect, disrupt, and dismantle major criminal enterprises reliant on the darknet for trafficking opioids and other illicit narcotics, along with identifying and dismantling their supply chains.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

WASHINGTON – A federal indictment was returned charging an Ohio man with a violation of the Church Arson Prevention Act for using Molotov cocktails against the Community Church of Chesterland, in Chesterland, Ohio, in an attempt to burn the church to the ground. He was also indicted on 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.

According to court documents, Aimenn D. Penny, 20, of Alliance, attempted to burn the church to the ground after learning the church was holding multiple drag show events the following weekend. Penny was initially arrested and charged with federal offenses on March 31.

If convicted, Penny faces a maximum penalty of up to 20 years in prison for the violation of the Church Arson Prevention Act. Penny also faces a mandatory minimum of five years and up to 20 years in prison for the malicious use of explosive materials charge and up to 10 years in prison for the possession of a destructive device charge. In addition, if convicted of using fire to commit a federal felony, Penny faces a 10-year mandatory prison sentence that will run consecutively with any other prison term imposed.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio and Special Agent in Charge Gregory Nelsen of the FBI Cleveland Field Office made the announcement.

 

The FBI Cleveland Field Office is investigating the case. Assistant U.S. Attorneys Brian Deckert and Matthew W. Shepherd 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.

 

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

 

YOUNGSTOWN – Jonathan L. Stinnett, 37, of Massillon, Ohio, was sentenced on Wednesday, April 19, 2023, to 30 years in prison by U.S. District Judge Benita Y. Pearson after he pleaded guilty to kidnapping a 5-year-old child and possessing child pornography. Once released from prison, Stinnett will be under court supervision for life.

According to court documents, on November 11, 2021, Stinnett, the boyfriend of the child’s babysitter, took the child during an outing with his girlfriend and the child in Massillon, Ohio. Stinnett left Massillon with the child in his vehicle, disabled his cellular phone, and avoided attempts by his girlfriend and law enforcement to contact him.

Court documents state that more than 24 hours later, law enforcement in McLean County, Illinois, received a call reporting a suspicious vehicle parked on a rural road. Sheriff’s deputies responded and found Stinnett and the child asleep in Stinnett’s vehicle. Stinnett was arrested and the child was returned to her family.
During interviews with investigators from the McLean County Sheriff’s Office and the Federal Bureau of Investigation, Stinnett admitted taking the child without her mother’s knowledge or consent. Prior to the kidnapping, Stinnett had purchased a new cellular phone and camping equipment that he planned to use as they traveled.

Court documents also show that a search of Stinnett’s vehicle revealed numerous electronic storage devices. One of those devices contained approximately 229 images of child pornography. Stinnett admitted possessing and viewing those images.

The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, the Jackson Township Police Department, and the McLean County, Illinois, Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Peter E. Daly and Aaron P. Howell.

 

CLEVELAND – Joseph A. Cipolletti, 48, of Hudson, Ohio, was sentenced on Thursday, April 20, 2023, to 60 months in prison by U.S. District Judge Pamela A. Barker after he pleaded guilty to an 18-count indictment that charged him with wire fraud, money laundering, bank fraud and false statements under oath in a bankruptcy proceeding.

“This defendant abused his position of trust by embezzling from $550,000 and $1.5 million from his family’s student travel company for his personal use,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Student trips to Washington, D.C. were canceled for dozens of schools across Ohio and more than 5,000 families lost the money they had previously paid for trip fees. Today’s five-year prison sentence reflects his reprehensible conduct.”

“Bilking customers in any line of business is appalling, and more so, as a business executive entrusted to provide memorable educational experiences for children and teens,” said FBI Cleveland Special Agent in Charge Gregory Nelsen. “Today’s sentence reflects the comprehensive investigative work of the FBI, and together with our federal, state, and local partners, highlights our commitment to uncover corrupt business dealings.”

According to court documents, Cipolletti was employed as Vice President of Discovery Tours, Inc., a business that offered educational trips for students to destinations such as Washington, D.C., Chicago, Illinois, New York City, New York, Columbus, Ohio, and Gettysburg, Pennsylvania. Court documents state that as Vice President, Cipolletti managed the organization’s finances, general ledger entries, accounts payable and accounts receivable. Cipolletti also had signature authority on Discovery Tours’ business bank accounts.

Court documents state that from June 2014 to May 2018, Cipolletti, as Vice President, devised a scheme to defraud parents and other student trip purchasers by diverting payments intended for these trips to his own personal use on items such as home renovations and vehicles.

As a result of Cipolletti’s actions and subsequent attempts to cover up the scheme, in May 2018, Discovery Tours abruptly ended operations and filed for bankruptcy.

In addition, on December 10, 2018, in the United States Bankruptcy Court for the Northern District of Ohio, Cipolletti knowingly made statements under oath in and in relation to his organization’s bankruptcy status. Cipolletti claimed that he did not owe his business any money when, in fact, and as he then knew, he had embezzled from his place of business and made false entries in the general ledger.

This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Brian M. McDonough.

 

CLEVELAND – Federal, county and local law enforcement officials today announced that 18 individuals were charged for their roles in a drug trafficking conspiracy that involved the distribution of fentanyl in Cleveland and the Wayne County area. Some were arrested during an early morning operation and transported to federal court in Cleveland.

This announcement is made by First Assistant U.S. Attorney Michelle M. Baeppler, DEA Assistant Special Agent in Charge Tom Gergye, and Director Joshua Hunt of the Medway Drug Enforcement Agency.

“While so many of us have been working tirelessly to make our communities a safer and better place to live, the defendants charged in these indictments have been doing otherwise,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Today’s indictments and arrests reflect the resolve of law enforcement at all levels to hold drug traffickers accountable and return our neighborhoods to a better tomorrow.”

“Possession and distribution of illegal narcotics and the illegal possession of firearms will not be tolerated in our communities or by the good citizens who live there,” said DEA Assistant Special Agent in Charge Tom Gergye. “Likewise, the DEA will continue its targeted, exhaustive, and collaborative efforts with our local, state and federal partners to identify and dismantle drug trafficking organizations that bring poison and violence into our neighborhoods.”

“Our unending commitment to this community is to work relentlessly in collaboration with our law enforcement partners at every level, bringing every combined resource to bear with the unified mission to deliver those persons to justice who contribute to this deadly scourge” said Director Joshua Hunt of the Medway Drug Enforcement Agency located in Wayne County, Ohio. “I'm immensely proud of the collective achievements born from this 2-year investigation, while I also remain dedicated to ensuring that this important work continues well into the future.”

The following is a breakdown of the charges: Charged in a 36-count indictment with conspiracy to possess with the intent to distribute and distribution of controlled substances, distribution of a controlled substance, possession with the intent to distribute a controlled substance and use of a communications facility to facilitate a drug trafficking offense are:

Charles Daniels, 45, State of Ohio Custody; Deandre Wilson, 46, Federal Custody; Jason Johnson, 46, State of Ohio Custody; Blaze Cody Mclaughlin, 32, Federal
Custody; Anthony Ray Lies, 40, Rittman, Ohio; Nicholas Knapik, 39, State of Ohio Custody; Jordan Jarvis, 34, State of Ohio Custody; David Stark, 45, State of Ohio Custody; Roger Stark, 44, Wooster, Ohio; Sebastian Yeagley, 32, Wooster, Ohio; Cody Smith, 28, Wooster, Ohio; John Harig, Jr. 43, Wooster, Ohio; Caleb Smith 30, State of Ohio Custody; Elijah Goshen 31, Cleveland, Ohio; Cassandra Vojacek, 40, Perry, Ohio; Chad Anderson, 38, Columbus, Ohio; Blake Nowak, 45, Burton, Ohio.

According to the indictments, between as early as on or about October, 1, 2020, and continuing through on or about February 28, 2023, the defendants did knowingly and intentionally conspire with each other to distribute and possess with the intention to distribute a mixture and substance containing fentanyl. Johnson was also charged with being a felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime. The indictment also seeks forfeiture of a firearm and U.S. Currency.

Charles Daniels recruited drug dealers from Wayne County, Ohio, to purchase fentanyl from sources designated by him, including but not limited to Deandre Wilson and Jason Johnson for further distribution throughout the Northern District of Ohio.

Daniels contacted Wilson and Johnson and arranged for them to sell fentanyl to the Wayne County drug dealers at a discounted price per gram. Daniels provided the Wayne County drug dealers with the contact information for Wilson and Johnson for the purpose of obtaining fentanyl for distribution.

Charged in a 2-count indictment with distribution of a controlled substance containing methamphetamine is Markus Ellison of Wooster, Ohio, State of Ohio Custody.

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.

The investigation preceding the indictments was conducted by the DEA, Medway Drug Enforcement Agency, the Wooster Police Department, the Wayne County Sheriff’s Office, the Ohio State Patrol, Ohio High Intensity Drug Trafficking Area (HIDTA), the Ohio Department of Rehabilitation and Corrections and the Ohio National Guard Intelligence Analysts. This case is being prosecuted by Assistant U.S. Attorney Payum Doroodian.

TOLEDO – Today, Adam Bess, 35, pleaded guilty to a felony for depriving an inmate at the Erie County Jail of her constitutional rights by using excessive force. According to court documents, on November 1, 2021, Bess was working as a sergeant at the Erie County Jail. During the booking process of a new arrestee, Bess repeatedly choked her causing her vision to pixelate and have lasting bruising. The inmate can be heard yelling, “He’s about to kill me, he’s about to kill me” during the assault.

Bess faces up to ten years imprisonment and it will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, 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.

A sentencing date has not yet been set before United States District Judge Jack Zouhary.

This case was investigated by the FBI Cleveland Division and the Erie County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorneys Michael Freeman and Tracey Tangeman.

TOLEDO – Three Toledo men were sentenced yesterday by U.S. District Judge Jack Zouhary after they were convicted at trial in November 2022 of various drug trafficking offenses. They were the last of 26 defendants charged in a 2020 indictment.

Antuan Wynn, who has a previous federal drug conspiracy conviction in the Northern District of Ohio, was sentenced to 224 months imprisonment; Marquise Figures was sentenced to 70 months imprisonment; and Christopher Simpson, who has a previous federal felon in possession of a firearm conviction in the Northern District of Ohio and was on supervised release at the time of this indictment, was sentenced to 300 months.

According to court documents, Wynn, Figures, Simpson, and other co-defendants conspired to traffic large amounts of cocaine, cocaine base, and fentanyl in the Toledo area. Court documents indicate that Wynn supplied substantial amounts of cocaine to another co-defendant, Anthony Duff, who then distributed ounce quantities to various distributors including Figures. Additionally, court documents state Simpson supplied fentanyl to Jackie Green and others.

Court records also show that members of the conspiracy used multiple cell phones that were obtained under other names, fictious names, or in no name at all. They also used code words to conceal their activity and used multiple residences in the Toledo area to store, break down, package, and distribute their narcotics and proceeds.

On December 16, 2020, federal, state, county, and local law enforcement authorities participated in an extensive takedown operation which included arrests and search warrants of those involved in the drug trafficking conspiracy. This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF)operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

This case was investigated by the FBI Safe Streets Task Force, Toledo Metro Drug Task Force, and the Northwest Ohio Interdiction Task Force.

The FBI Safe Streets is comprised of the FBI, Toledo Police Department, Sylvania Township Police Department, and the Oregon Police Department. The Toledo Metro Drug Task Force is comprised of the FBI, Toledo Police Department, Bureau of Criminal Investigations, Lucas County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The Northwest Ohio Interdiction Task Force is comprised of the FBI, Toledo Police Department, and the Lucas and Wood County Sheriff’s Offices. This case was prosecuted by Assistant U.S. Attorneys Alissa M. Sterling and Robert N. Melching.
 

TOLEDO – Gerald E. Reichert, age 65, and Adam M. Reichert, age 36, were sentenced by Judge Jack Zouhary of the Northern District of Ohio, Western Division, on April 6, 2023, following their guilty pleas to Conspiracy to Commit Major Fraud Against the United States, Highway Project Fraud, and Wire Fraud. Gerald E. Reichert was sentenced to serve 16 months in prison, and to pay a fine of $90,000. Adam M. Reichert was sentenced to serve 8 months in prison, and to pay a fine of $70,000. Both men were ordered to pay total restitution of $579,014.

Gerald (father) and Adam (son) were owners and operators of Oglesby Construction, Inc., a pavement marking contractor based in Norwalk, Ohio, that performed paint-striping services for the States of Ohio, Kentucky, and West Virginia. The men participated in a scheme to defraud state and federal governments by contracting with state authorities to perform paint-striping of roads using a certain amount of paint and glass beads, but then under-applying those materials and falsely informing states that they had complied with contractual requirements. The scheme participants misled the states by either manipulating daily excel spreadsheet reports submitted to the states, or by attaching physical manipulation devices to application trucks including applicators and scales.

The case was investigated by the United States Department of Transportation, Office of Inspector General, and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Robert N. Melching, Jody L. King, Suzana K. Koch, and Gene Crawford.

WASHINGTON – An Ohio man was arrested this morning and charged with one count of malicious use of explosive materials and one count of possessing a destructive device.

According to court documents, Aimenn D. Penny, 20, of Alliance, on March 25, used Molotov cocktails against the Community Church of Chesterland (CCC), Chesterland, Ohio, in an attempt to burn the church to the ground.

“As alleged in the charging documents, the defendant used an explosive device to cause harm to a church he found objectionable,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “It is the solemn duty of the Department of Justice to safeguard the right of all Americans to free expression, and I commend the work of law enforcement in this matter.”

“Violence and destruction are never an acceptable way to express a disagreement with a particular viewpoint,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “While, as Americans, we enjoy the right to disagree, doing so peacefully is the only appropriate option. The United States Attorney’s Office for the Northern District of Ohio remains committed to protecting the rights of all citizens to express their viewpoints peacefully.”

“The FBI Cleveland Joint Terrorism Task Force worked alongside the Chester Township Police Department in the matter surrounding a Molotov cocktail used against the Community Church of Chesterland on March 25. The FBI leveraged its task force and its specialized resources to identify, locate, and subsequently arrest the subject earlier today,” said Special Agent in Charge Gregory Nelsen of the FBI Cleveland Field Office. “We thank the collaborative work and strong partnership of the Chester Township Police and the Geauga County local authorities who assisted.”

If convicted, Penny faces a mandatory minimum of five years and up to 20 years in prison for the malicious use of explosive materials charge and up to 10 years in prison for the possession of a destructive device charge.

The FBI Cleveland Field Office is investigating the case.

Assistant U.S. Attorney Brian Deckert 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.

A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

An Ohio man was arrested this morning and charged with one count of malicious use of explosive materials and one count of possessing a destructive device.

According to court documents, on March 25, Aimenn D. Penny, 20, of Alliance, used Molotov cocktails against the Community Church of Chesterland (CCC), in Chesterland, Ohio, in an attempt to burn the church to the ground.

“As alleged in the charging documents, the defendant used an explosive device to cause harm to a church he found objectionable,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “It is the solemn duty of the Department of Justice to safeguard the right of all Americans to free expression, and I commend the work of law enforcement in this matter.”

“Violence and destruction are never an acceptable way to express a disagreement with a particular viewpoint,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “While, as Americans, we enjoy the right to disagree, doing so peacefully is the only appropriate option. The United States Attorney’s Office for the Northern District of Ohio remains committed to protecting the rights of all citizens to express their viewpoints peacefully.”

“The FBI Cleveland Joint Terrorism Task Force worked alongside the Chester Township Police Department in the matter surrounding a Molotov cocktail used against the Community Church of Chesterland on March 25. The FBI leveraged its task force and its specialized resources to identify, locate and subsequently arrest the subject earlier today,” said Special Agent in Charge Gregory Nelsen of the FBI Cleveland Field Office. “We thank the collaborative work and strong partnership of the Chester Township Police and Lake and Geauga County local authorities who assisted.”

If convicted, Penny faces a mandatory minimum of five years and up to 20 years in prison for the malicious use of explosive materials charge and up to 10 years in prison for the possession of a destructive device charge.

The FBI Cleveland Field Office is investigating the case.

Assistant U.S. Attorney Brian Deckert 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.

A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Today, on behalf of the U.S. Environmental Protection Agency (EPA) and in coordination with the U.S. Attorney’s Office for the Northern District of Ohio, the Justice Department’s Environment and Natural Resources Division announced a complaint against Norfolk Southern Corporation and Norfolk Southern Railway Company (Norfolk Southern) related to the Feb. 3, derailment in East Palestine, Ohio. The complaint seeks penalties and injunctive relief for the unlawful discharge of pollutants, oil, and hazardous substances under the Clean Water Act, and declaratory judgment on liability for past and future costs under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

This action follows EPA’s issuance on Feb. 21, 2023 of a Unilateral Administrative Order under CERCLA to Norfolk Southern Railway Company requiring the company to develop and implement plans to address contamination and pay EPA’s response costs associated with the order. 

“When a Norfolk Southern train derailed last month in East Palestine, Ohio, it released toxins into the air, soil, and water, endangering the health and safety of people in surrounding communities,” said Attorney General Merrick B. Garland. “With this complaint, the Justice Department and the EPA are acting to pursue justice for the residents of East Palestine and ensure that Norfolk Southern carries the financial burden for the harm it has caused and continues to inflict on the community.” 

“From the very beginning, I pledged to the people of East Palestine that EPA would hold Norfolk Southern fully accountable for jeopardizing the community’s health and safety,” said EPA Administrator Michael S. Regan. “No community should have to go through what East Palestine residents have faced. With today’s action, we are once more delivering on our commitment to ensure Norfolk Southern cleans up the mess they made and pays for the damage they have inflicted as we work to ensure this community can feel safe at home again.”

“Last month, the East Palestine community was upended by a horrific train derailment. By filing this complaint today, we are demanding accountability from Norfolk Southern  for the harm this event has caused,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will tirelessly pursue justice for the people living in and near East Palestine, who like all Americans deserve clean air, clean water, and a safe community for their children.”

“The United States Attorney’s Office stands with our district’s residents in pursuing accountability and justice in both the immediate and distant future, as we work together to deal with the damage and destruction this disaster has caused,” said First Assistant U.S. Attorney Michelle Baeppler for the Northern District of Ohio.

On Feb. 3, 2023, a Norfolk Southern train carrying hazardous materials, including hazardous substances, pollutants, and oil derailed in East Palestine, Ohio. The derailment resulted in a pile of burning rail cars, and contamination of the community’s air, land, and water. Residents living near the derailment site were evacuated. Based on information Norfolk Southern provided, the hazardous materials contained in these cars included vinyl chloride, ethylene glycol monobutyl ether, ethylhexyl acrylate, butyl acrylate, isobutylene, and benzene residue. Within hours of the derailment, EPA and its federal and state partners began responding to the incident, including providing on-the-ground assistance to first responders and conducting robust testing in and around East Palestine.

The fire caused by the derailment burned for several days. On Feb. 5, monitoring indicated that the temperature in one of the rail cars containing vinyl chloride was rising. To prevent an explosion, Norfolk Southern vented and burned five rail cars containing vinyl chloride in a flare trench the following day, resulting in additional releases.

Since the EPA’s issuance of the Unilateral Administrative Order to Norfolk Southern Railway Company, the EPA has been overseeing that company’s work under the order. Approximately 9.2 million gallons of liquid wastewater, and an estimated 12,932 tons of contaminated soils and solids have been shipped off-site.

The EPA and other federal agencies continue to investigate the circumstances leading up to and following the derailment. The United States will pursue further actions as warranted in the future as its investigatory work proceeds.  

*This release has been updated to reflect the correct date, March 31, 2023.

WASHINGTON – Today, on behalf of the U.S. Environmental Protection Agency (EPA) and in coordination with the U.S. Attorney’s Office for the Northern District of Ohio, the Justice Department’s Environment and Natural Resources Division filed a complaint against Norfolk Southern Corporation and Norfolk Southern Railway Company (Norfolk Southern) related to the Feb. 3, derailment in East Palestine, Ohio. The complaint seeks penalties and injunctive relief for the unlawful discharge of pollutants, oil, and hazardous substances under the Clean Water Act, and declaratory judgment on liability for past and future costs under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

This action follows EPA’s issuance on Feb. 21, 2023 of a Unilateral Administrative Order under CERCLA to Norfolk Southern Railway Company requiring the company to develop and implement plans to address contamination and pay EPA’s response costs associated with the order.

“When a Norfolk Southern train derailed last month in East Palestine, Ohio, it released toxins into the air, soil, and water, endangering the health and safety of people in surrounding communities,” said Attorney General Merrick B. Garland. “With this complaint, the Justice Department and the EPA are acting to pursue justice for the residents of East Palestine and ensure that Norfolk Southern carries the financial burden for the harm it has caused and continues to inflict on the community.”

“From the very beginning, I pledged to the people of East Palestine that EPA would hold Norfolk Southern fully accountable for jeopardizing the community’s health and safety,” said EPA Administrator Michael S. Regan. “No community should have to go through what East Palestine residents have faced. With today’s action, we are once more delivering on our commitment to ensure Norfolk Southern cleans up the mess they made and pays for the damage they have inflicted as we work to ensure this community can feel safe at home again.”

“Last month, the East Palestine community was upended by a horrific train derailment. By filing this complaint today, we are demanding accountability from Norfolk Southern for the harm this event has caused,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will tirelessly pursue justice for the people living in and near East Palestine, who like all Americans deserve clean air, clean water, and a safe community for their children.”

“The United States Attorney’s Office stands with our district’s residents in pursuing accountability and justice in both the immediate and distant future, as we work together to deal with the damage and destruction this disaster has caused,” said First Assistant U.S. Attorney Michelle Baeppler for the Northern District of Ohio.

On Feb. 3, 2023, a Norfolk Southern train carrying hazardous materials, including hazardous substances, pollutants, and oil derailed in East Palestine, Ohio. The derailment resulted in a pile of burning rail cars, and contamination of the community’s air, land, and water. Residents living near the derailment site were evacuated. Based on information Norfolk Southern provided, the hazardous materials contained in these cars included vinyl chloride, ethylene glycol monobutyl ether, ethylhexyl acrylate, butyl acrylate, isobutylene, and benzene residue. Within hours of the derailment, EPA and its federal and state partners began responding to the incident, including providing on-the-ground assistance to first responders and conducting robust testing in and around East Palestine.

The fire caused by the derailment burned for several days. On Feb. 5, monitoring indicated that the temperature in one of the rail cars containing vinyl chloride was rising. To prevent an explosion, Norfolk Southern vented and burned five rail cars containing vinyl chloride in a flare trench the following day, resulting in additional releases.

Since the EPA’s issuance of the Unilateral Administrative Order to Norfolk Southern Railway Company, the EPA has been overseeing that company’s work under the order. Approximately 9.2 million gallons of liquid wastewater, and an estimated 12,932 tons of contaminated soils and solids have been shipped off-site.

The EPA and other federal agencies continue to investigate the circumstances leading up to and following the derailment. The United States will pursue further actions as warranted in the future as its investigatory work proceeds.

TOLEDO – Taylor Elysse Corggens, 30, of Sylvania, Ohio, was sentenced on Monday, March 20, 2023, to 6 months in prison by U.S. District Judge James G. Carr after she pleaded guilty to making a false statement in connection with her purchase of a firearm for a felon.

According to court documents, on May 24, 2021, Corggens and another individual, who was a convicted felon, entered a federally licensed firearms dealer together in the Oregon, Ohio, area. While in the store, court documents state that the felon picked out and handled a firearm despite being legally prohibited from such activities.

Court documents state that Corggens then used her identification to purchase the firearm from the dealer. Records show that the felon was later pulled over by Toledo Police Department officers and found to be in possession of the same firearm that Corggens purchased.

Later, in December 2021, federal law enforcement authorities interviewed Corggens about the firearm and asked Corggens if anyone was with her when she purchased the firearm. Corggens stated that no one was with her when she purchased the firearm despite surveillance video evidence from the firearms dealer showing Corggens and another individual arriving together in the same vehicle and entering the dealer simultaneously.

The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Toledo Police Department, and Homeland Security Investigations. This case was prosecuted by Assistant U.S. Attorney Robert N. Melching.

TOLEDO - Sage George, 31, of Perrysburg, Ohio was indicted on one count of Possession with Intent to Distribute Methamphetamine and one count of Use of a Communications Facility to Facilitate a Drug Felony.

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 preceding the indictment was conducted by the United States Postal Inspection Service working in conjunction with the Drug Enforcement Administration.

The case is being prosecuted by Assistant United States Attorneys Alissa M. Sterling and Frank H. Spryszak.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

AKRON - First Assistant United States Attorney Michelle M. Baeppler announced that a federal jury convicted Branea Bryant, age 29, and Ramel Drew, age 44, both of Cleveland, Ohio, of drug trafficking offenses on Friday, March 17, in Akron, Ohio, following a two-week jury trial before Judge John R. Adams.

The jury convicted Branea Bryant of one count of Conspiracy to Distribute and Possess with Intent to Distribute 400 Grams or More of Fentanyl, one count of Conspiracy to Launder Money, and three counts of Money Laundering. The jury convicted Ramel Drew of one count of Conspiracy to Distribute and Possess with Intent to Distribute 400 Grams or More of Fentanyl, one count of Use of a Communications Facility to Facilitate Drug Trafficking, one count of Distribution of Fentanyl, and one count of Possession with Intent to Distribute 400 Grams or More of Fentanyl.

The following information is based on court documents and evidence presented at trial.

In 2021, the FBI learned that Branea Bryant’s brother, Brandon Bryant, and her boyfriend, Devonn Fair, were selling fentanyl to customers at various locations on the east side of Cleveland. Branea Bryant’s company, ADF3 Investments, LLC, owned a house on East 130th Street in Cleveland that Brandon Bryant was using to sell fentanyl.
Based upon a long term, multi-agency investigation, the FBI determined that Brandon Bryant and Devonn Fair were selling fentanyl to customers at multiple locations in Cleveland, and that Branea Bryant and Ramel Drew were 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 F-Type.

One of the houses searched on August 31st 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. The FBI recovered a DVR surveillance system from the East 89th Street house, which showed Ramel Drew, Devonn Fair, and codefendant Nathaniel Lightfoot engaging in drug transactions with customers in the driveway of the residence. Testimony at trial also established that Fair, Drew, and Lightfoot shared a cell phone that drug customers would call to arrange the drug purchases. Fair and Lightfoot previously pled guilty and are pending sentencing.

Investigation by the IRS showed that Branea Bryant’s company, ADF3 Investments, owned several high-end vehicles connected to the drug conspiracy, including two Range Rovers that had been purchased with drug money, and a Jaguar F-Type that was used to facilitate drug deals. At trial, the lead IRS investigator testified that ADF3 did not file any state or federal tax returns, and that it did not appear to engage in any kind of legitimate business activity. The IRS investigator also testified that ADF3’s bank accounts, which had been opened by Branea Bryant, were largely funded with cash deposits and that ADF3’s accounts had been used to make large purchases at designer stores like Gucci and Prada using Branea Bryant’s debit card.

Branea Bryant and Ramel Drew were among 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). The other 22 defendants named in the indictment previously pled guilty.

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 is being prosecuted by Assistant U.S. Attorneys James Lewis, Joseph Dangelo, and James Morford.

TOLEDO - Gage Haws, 28, of Findlay, Ohio was indicted on five counts of Bank Robbery. The indictment alleges that between December 31, 2022, and February 16, 2023, the defendant committed robberies at Premier Bank in Arlington, Ohio, Old Fort Bank in Bettsville, Ohio, First National Bank of Sycamore in McCutchenville, Ohio, Union Bank Company in Kalida, Ohio, and State Bank and Trust Company in Delta, Ohio.

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.

The investigation preceding the indictment was a collaborative effort conducted by the Federal Bureau of Investigation, Findlay Police Department, Putnam County Sheriff’s Office, Kalida Police Department, Seneca County Sheriff’s Office, Delta Police Department, Fulton County Sheriff’s Office, Wyandot County Sheriff’s Office, and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Assistant United States Attorneys Frank H. Spryszak and Matthew D. Simko.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

TOLEDO, Ohio - First Assistant United States Attorney Michelle M. Baeppler announced that a federal jury convicted Dr. Oliver Jenkins, age 60, and Sherry-Ann Jenkins, age 58, of Jessup, Georgia, of conspiracy, mail fraud, wire fraud, and health care fraud on Friday, March 17, in Toledo, Ohio following a two- week trial before Judge Jack Zouhary.

According to court documents and evidence presented at trial, Dr. Oliver Jenkins, who was an Ear, Nose, and Throat M.D. at the Toledo Clinic, and his wife, Sherry-Ann Jenkins, who had a Ph.D. but was not licensed to practice medicine in Ohio, started a new business called the “The Toledo Clinic Cognitive Center.” The Jenkinses represented to the Toledo Clinic that patients suspected of cognitive disorders, particularly dementia and Alzheimer’s Disease, could come to the Cognitive Center for neurocognitive testing, diagnosis, treatment, and referrals, and that Sherry-Ann Jenkins would administer the neurocognitive testing under the supervision of Dr. Oliver Jenkins. The Jenkinses represented that Dr. Oliver Jenkins would make a diagnosis, and provide medical treatment, or a referral. Instead, the Jenkinses engaged in a scheme to defraud. Dr. Oliver Jenkins never saw or treated patients at the Cognitive Center. Sherry-Ann Jenkins ordered PET scans of patients’ brains, interpreted the scans, diagnosed patients, including a college-aged student, with Alzheimer’s Disease, Dementia, or other impairments, recommended patients take coconut oil to improve memory, and instructed certain patients to see her every 3-6 weeks for the rest of their lives. The Jenkinses billed Cognitive Center patients and health care benefits programs using Dr. Oliver Jenkins’ billing number.

This case was investigated by the Federal Bureau of Investigation in Toledo, Ohio, the United States Department of Health and Human Services, Office of Inspector General in Cleveland, Ohio, the Ohio Attorney General’s Medicaid Fraud Control Unit, and the Ohio State Medical Board. The case is being prosecuted by Assistant U.S. Attorneys Brian McDonough and Robert Melching.

WASHINGTON – The Justice Department announced on March 13, 2023, that the United States filed a complaint in intervention in a whistleblower lawsuit brought under the False Claims Act (FCA) against Rite Aid Corporation and various subsidiaries (collectively Rite Aid) alleging that Rite Aid knowingly filled unlawful prescriptions for controlled substances. In addition to alleging claims under the FCA, the government’s complaint also alleges violations of the Controlled Substances Act (CSA). Rite Aid is one of the country’s largest pharmacy chains, with over 2,200 pharmacies in 17 states.

“The Justice Department is using every tool at our disposal to confront the opioid epidemic that is killing Americans and shattering communities across the country,” said Attorney General Merrick B. Garland. “That includes holding corporations, like Rite Aid, accountable for knowingly filling unlawful prescriptions for controlled substances.”

“We allege that Rite Aid filled hundreds of thousands of prescriptions that did not meet legal requirements,” said Associate Attorney General Vanita Gupta. “According to our complaint, Rite Aid’s pharmacists repeatedly filled prescriptions for controlled substances with obvious red flags, and Rite Aid intentionally deleted internal notes about suspicious prescribers. These practices opened the floodgates for millions of opioid pills and other controlled substances to flow illegally out of Rite Aid’s stores.”

“The opioid crisis has exacted a heavy toll on communities across the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s complaint is an important reminder that the Justice Department will hold accountable any individuals or entities, including pharmacies, that fueled this terrible crisis.”

“Pharmacies, physicians, corporations, and other health care entities that have contributed to the proliferation of opioids in our communities and the tragic loss of life from overdose deaths must answer for their role in the crisis we now face,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “This complaint is a continuation of the Justice Department’s commitment to hold accountable those entities that aggravated and profited from the opioid crisis.”

The government’s complaint alleges that, from May 2014 through June 2019, Rite Aid knowingly filled at least hundreds of thousands of unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, were not for a medically accepted indication, or were not issued in the usual course of professional practice. These unlawful prescriptions included, for example, prescriptions for the dangerous and highly abused combination of drugs known as “the trinity,” prescriptions for excessive quantities of opioids, such as oxycodone and fentanyl, and prescriptions issued by prescribers whom Rite Aid pharmacists had repeatedly identified internally as writing illegitimate prescriptions.

The government alleges that Rite Aid pharmacists filled these prescriptions despite clear “red flags” that were highly indicative that the prescriptions were unlawful. The government further alleges that Rite Aid not only ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from certain pharmacists, its distributor, and its own internal data, but compounded its failure to act by intentionally deleting internal notes about suspicious prescribers written by Rite Aid pharmacists and directing district managers to tell pharmacists “to be mindful of everything that is put in writing.” By knowingly filling unlawful prescriptions for controlled substances, the government alleges that Rite Aid violated the CSA and, where Rite Aid sought reimbursement from federal healthcare programs, also violated the FCA.

Along with Rite Aid Corporation, the government’s complaint names as defendants the following Rite Aid subsidiaries: Rite Aid Hdqtrs, Corp.; Rite Aid of Connecticut, Inc.; Rite Aid of Delaware, Inc.; Rite Aid of Maryland; Rite Aid of Michigan; Rite Aid of New Hampshire; Rite Aid of New Jersey; Rite Aid of Ohio; Rite Aid of Pennsylvania; and Rite Aid of Virginia.

“The action supported today by the Drug Enforcement Administration (DEA) should serve as a warning to those in the pharmacy industry who choose to put profit over customer safety,” said Special Agent in Charge Orville O. Greene of the DEA.

“Pharmacies are required to ensure prescription drugs are only dispensed based on valid prescriptions,” said Special Agent in Charge Maureen Dixon of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “Prescriptions which are not medically necessary, and not for a medically accepted indication, will not be paid for by Medicare and Medicaid. HHS-OIG will continue to work with our law enforcement partners and the Department of Justice’s Civil Division to recover improperly paid funds through the FCA.”

Whistleblowers Andrew White, Mark Rosenberg, and Ann Wegelin, who all previously worked for Rite Aid at various pharmacies, filed an action in October 2019 under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over the lawsuit, as it has done here in part. Those who violate the Act are subject to treble damages and applicable penalties.

The case is captioned United States ex rel. White et al. v. Rite Aid Corp., et al., No. 1:21-cv-1239 (N.D. Ohio).

The United States’ intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).

This matter is being handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Northern District of Ohio. The DEA Cleveland Field Division, FBI Cleveland Field Office, and HHS-OIG provided substantial assistance in the investigation.

The United States is represented in this matter by Senior Trial Counsel Christopher Wilson of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Patricia Fitzgerald and Elizabeth Berry for the Northern District of Ohio.

The Justice Department is committed to holding responsible those who have fueled the opioid crisis by violating the law.

Last week, the Associate Attorney General announced the creation of the Opioid Epidemic Civil Litigation Task Force, which formalizes and enhances coordination of the Department’s existing work and will consider new initiatives. Because of the scope and duration of the crisis, the Task Force includes U.S. Attorneys’ Offices, the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch (Fraud Section), the Drug Enforcement Administration, and other Department components.

The Task Force will steer the Department’s civil litigation efforts involving actors alleged to have contributed to the opioid epidemic, including by diverting prescription opioids.

The claims asserted against defendants are allegations only and there has been no determination of liability.