Northern District of Ohio

First Assistant U.S. Attorney Michelle M. Baeppler announced that Steven Saris, 47, of Canton, Ohio, was charged in an indictment with operating an illegal gambling business.

The indictment alleges that from 2012 through 2018, the defendant, and others known and unknown to the Grand Jury, owned and operated Café 62, an illegal gambling business involving slot machines, in the Canton area.

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

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

The investigation preceding the indictment was conducted by IRS Criminal Investigation (CI), Homeland Security Investigations (HSI), the Ohio Casino and Gaming Commission and the Stark County Prosecutor’s Office.

This case is being prosecuted by Assistant U.S. Attorneys David M. Toepfer and Robert J. Patton.  

CLEVELAND – First Assistant U.S. Attorney Michelle M. Baeppler announced that Sedric J. Lewis, age 35, of Miami, Florida, was charged in a four-count indictment with two counts of bank fraud and two counts of aggravated identity theft in the Northern District of Ohio.

According to the indictment, in June 2019, Lewis used the personal identifying information of another individual to open a bank account with JPMorgan Chase Bank. In addition, the indictment alleges that in August 2019, Lewis deposited into the same JPMorgan Chase Bank account a fraudulent check bearing the forged signature of another individual.

Lewis was arrested on Thursday, Aug. 25, 2022, in Miami.

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

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

This case was investigated by the FBI Cleveland Division and is being prosecuted by Special Assistant United States Attorney Jason W. White.

CLEVELAND - Charles E. Smith, Jr., 52, of Woodmere, Ohio, was sentenced today by U.S. District Judge Christopher A. Boyko to 33 months in prison and ordered to pay $10,621.23 in restitution after he pleaded guilty to using stolen financial information to purchase gasoline.

According to court documents, from May 2019 through May 2020, Smith, the former Mayor of Woodmere, Ohio, purchased stolen credit and debit card account information, including account numbers and addresses, from the dark web.  Smith then used a credit card reader encoder/writer to program that information onto blank cards and used those cards to make fraudulent purchases of gasoline at various gas stations in Northern Ohio.  Court records state that Smith purchased the gasoline to fuel vehicles that he used to deliver packages for Amazon.

In total, Smith purchased at least $10,621.23 in gasoline using over 100 stolen debit and credit card accounts.  After his arrest, investigators later determined that Smith had purchased more than 600 stolen debit and credit card accounts from the dark web, affecting victims in 25 states.

Smith pleaded guilty to one count of access device fraud and one count of aggravated identity theft on May 19, 2022.

This case was investigated by the U.S. Secret Service and was prosecuted by Assistant U.S. Attorney Payum Doroodian.

CLEVELAND - Andre Hunt, 24, of Cleveland, Ohio, was sentenced to 61 months in prison by U.S. District Judge Dan Aaron Polster on Wednesday, Aug. 24, 2022.  Hunt previously pleaded guilty to providing a false statement to a firearms dealer in Ashtabula, Ohio, in order to purchase a weapon, illegal possession of ammunition and possession with intent to distribute fentanyl, heroin and methamphetamine.

According to court documents and statements made during the sentencing hearing, Hunt was released from prison on July 22, 2020, following a 2015 conviction in the Ashtabula County Court of Common Pleas of two counts of felony aggravated robbery.

Shortly after his release, on Aug. 21, 2020, Hunt gave a false statement to a licensed firearms dealer in Ashtabula in an attempt to purchase a pistol.  Court documents state that Hunt claimed he had never been convicted of a felony when, in fact, he had previously been convicted of felony charges.

Following this incident, on Oct. 1, 2020, court documents state that Hunt was found to be in possession of fentanyl, heroin, methamphetamine and fourteen rounds of ammunition.  Hunt is prohibited from possessing ammunition due to his previous felony conviction.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Crime Enforcement Agency of Ashtabula County (CEAAC) and the Ashtabula Police Department.  This case was prosecuted by Assistant U.S. Attorney Jason M. Katz.

John P. Comer, 52, of Euclid, Ohio, was sentenced on August 19, 2022, by U.S. District Judge Patricia A. Gaughan to more than 12 years in prison and 20 years of supervised release after Comer pleaded guilty to receipt and distribution of visual depictions of minors engaged in sexually explicit conduct and possession of child pornography.

According to court documents, on September 30, 2021, federal law enforcement agents executed a search warrant at an address in Euclid associated with Comer after authorities became aware of his involvement in the receipt and distribution of child pornography, including a digital folder labeled “CP video Brutal.”

During the execution of the warrant, authorities seized multiple electronic devices belonging to Comer, including two computers and a cell phone containing child pornography.  An onsite forensic preview of Comer’s cell phone revealed that it contained images of minors engaged in sexual conduct.

In addition to the prison sentence, Judge Gaughan ordered Comer to pay $3,000 in restitution and a $10,000 Justice for Victims of Trafficking Act (JVTA) assessment.

This case was investigated by the Cleveland FBI and prosecuted by Assistant U.S. Attorney Michael A. Sullivan.

CLEVELAND - Matthew Lucarell, 42, of Youngstown, Ohio, was sentenced today by U.S. District Judge Pamela A. Barker to 30 years in prison after Lucarell pleaded guilty to four counts of sexual exploitation of children, one count of possession of child pornography and one count of receipt and distribution of minors engaged in sexually explicit conduct.

According to court documents, from September 2019 to March 2021, Lucarell coerced four separate minor victims into engaging in sexually explicit conduct in order to produce visual depictions of the interactions.  In addition, from May 2018 to February 2021, Lucarell knowingly received and distributed various files of child pornography. 

On April 1, 2021, Lucarell was found to be in possession of a cell phone and two Micro SD Cards, which contained numerous files of child pornography, including at least one image involving a minor under the age of 12.

This case was investigated by Homeland Security Investigations (HSI) and the Mahoning Valley Human Trafficking Task Force.  This case was prosecuted by Assistant U.S. Attorney Margaret A. Kane.

CLEVELAND – First Assistant U.S. Attorney Michelle M. Baeppler announced that a Florida couple was charged in a five-count indictment with sending threatening communications to federal law enforcement agents and other individuals in the Northern District of Ohio.

Akil Larry Joseph, 31, and Alexa Marie Logan, 30, both of Homestead, Florida, were charged with four counts of cyberstalking and one count of interstate communications with intent to extort.

According to court documents, from November 2021 to July 2022, it is alleged that Joseph and Logan sent numerous threatening communications, via email and telephone, to federal law enforcement agents and other individuals in the Northern District of Ohio with the intent to obtain money from the victims. 

Court documents state that over the course of an approximately two-year period, multiple communications sent by the couple, primarily via email, came to contain increasingly harassing and aggressive language rhetoric and tone. 

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

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

This case was investigated by the FBI.  This case is being prosecuted by Assistant U.S. Attorneys Christopher J. Joyce and Peter E. Daly.

The United States Attorney's Office for the Northern District of Ohio presented awards to honor exceptional advocacy, support and legal work on behalf of the district's six million residents in the year 2021.

"Each year, our office recognizes exceptional performance, leadership and effort put forth by employees of the United States Attorney’s Office in the Northern District on behalf of the residents and communities that we serve,” said First Assistant United States Attorney Michelle M. Baeppler,” "Whether it's combating violent crime, protecting taxpayers, assisting with case management or managing the needs of an office of over 200 employees, these award recipients embody the best of public service."

Details of the award winners are below:

National Association of Former United States Attorneys’ Exceptional Service Award

The National Association of Former United States Attorneys’ award recognizes exceptional service to the United States Attorneys’ Office, the Department of Justice and the United States in its award for Exceptional Service. 

Awardee: Carol Skutnik

 

Excellence in Civil, Criminal, Paralegal and Administrative Support

Awarded for outstanding overall performance for a particular project/case/duty or series of projects/cases/duties in a respective office division.

 

Excellence in Civil Support

Kendall Miller

 

 

Excellence in Paralegal Support

Jennifer Miller

 

 

Excellence in Criminal Support

Judith Toth

 

 

Excellence in Administrative Support

Kerri Hesketh

 

 

New Legal Support Award

Awarded to a civil, criminal, or administrative support employee with less than five years of experience who demonstrates outstanding overall performance, a superior commitment to the mission of the Office and displays significant growth in the execution of their duties.

Awardee: Kelsey Sprenger

 

New AUSA Excellence Award

Awarded to an Assistant U.S. Attorney with less than five years of experience who demonstrates outstanding overall performance, a superior commitment to the mission of the Office and displays significant growth in the execution of their duties.

Awardee: Matthew Simko

 

The Jane Corrigan Award

Awarded to a supportive staff member who is always professional, ready to help others in the performance of their duties, who expresses a “can-do” attitude, and whose demeanor is always engaging.

Awardee: Antoinette Burrell

 

Bernard A. Smith Award for Excellence in Appellate Advocacy

Awarded for exceptional advocacy in an appellate matter. Nominees are considered for their professionalism, the difficulty of the legal arguments briefed or argued, and any other challenging case-related circumstances, regardless of verdict or court opinion.

Awardee: Daniel Ranke

 

Excellence in Criminal Advocacy

Awarded for exceptional advocacy in a criminal matter. Nominees are considered for their professionalism, the difficulty of the legal arguments briefed or argued, and any other challenging case-related circumstances, regardless of verdict or court opinion.

Awardees: Michael Collyer, Megan Miller, Bryan Bricker, Allison Kretz

 

Excellence in Civil Advocacy

Awarded for exceptional advocacy in a civil matter. Nominees are considered for their professionalism, the difficulty of the legal arguments briefed or argued, and any other challenging case-related circumstances, regardless of verdict or court opinion.

Awardee: Suzana Koch

 

AUSA Supervisor of the Year

Awarded to a supervisor who has demonstrated superior professionalism, leadership, and management in the performance of their duties.

Awardee: Steven Paffilas

 

The Bill Edwards Career Award

Awarded to an Assistant U.S. Attorney with more than 15 years of experience who has demonstrated superior professionalism in the execution of their duties and excellence in leadership and mentorship throughout their career.

Awardee: Guillermo “Bill” Rojas

 

The Roberta Sladick Career Award

Named after former Northern District of Ohio employee Roberta Sladick and awarded to a support staff employee with more than 15 years of experience who has demonstrated superior professionalism in the execution of the support staff’s duties, and excellence in leadership and mentorship throughout the person’s career.

Awardee: Sarah Perkins

 

The Craig Tame Award for Excellence in Community Outreach Award

Named in honor of former Northern District of Ohio Law Enforcement Coordinator Craig Tame and awarded to an employee who demonstrates a commitment to community service and making the Northern District of Ohio a better place to live. 

Awardee: Michelle Heyer

 

Employee of the Year – Administrative Support

Awarded for exceptional overall performance, which demonstrates a superior commitment in the execution of the person’s duties in the Administrative Division.

Awardee:  SharNette McCully

 

Employee of the Year – Legal Support:

Awarded to a Legal Support employee for exceptional overall performance, taking into account all the required responsibilities in the performance of the person’s duties, which demonstrates a superior commitment to the interests of justice, and the mission of the United States Attorney’s Office.

Awardee: Jesse Sherman

 

AUSA of the Year 

Awarded to an Assistant United States Attorney for exceptional overall performance, taking into account all the required responsibilities in the performance of the person’s duties, which demonstrates a superior commitment to the interests of justice and the mission of the United States Attorney’s Office.

Awardees: Assistant U.S. Attorneys Robert J. Kolansky and Peter Daly

 

###

A Parma man has been charged with one count of conspiracy to commit arson related to the destruction of a parking booth during the May 30, 2020, demonstrations and civil unrest in downtown Cleveland.

According to the indictment, Seth Calig, 49, and others known and unknown are accused of setting fire to the Shaia & PPR parking booth located on West 3rd Street on May 30, 2020.  It is alleged that the defendant and others gathered around the parking booth and that the defendant ignited a roll of paper towels and cardboard with a lighter and placed it inside the booth.  As a result, it is alleged that Calig and others caused physical damage to the parking booth.

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

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

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Cleveland Division of Police.  This case is being prosecuted by Assistant U.S. Attorney Kelly L. Galvin.  

Matthew J. Turnipseede, 49, of Las Vegas, Nevada, was charged today in a 13-count indictment with defrauding approximately 72 investors in the Northern District of Ohio and elsewhere out of more than $8.5 million through a Ponzi scheme that promised investors double-digit profits achieved through various sports wagering businesses.

The defendant was officially charged with 12 counts of wire fraud and one count of mail fraud.

According to the indictment, from March 2015 to May 2021, the defendant induced victims to invest money in companies that he owned, namely Edgewize LLC, Moneyline Analytics, Moneyline Analytics Dublin Branch, and another company incorporated by Turnipseede, by falsely claiming that investor funds would be used to make sophisticated sports wagers according to an algorithm that generated double-digit returns. 

According to the indictment, none of these companies ever generated the promised profits, and instead the defendant used investor money to maintain the business, seek new sources of funds, pay off earlier investors and fund personal expenses. 

The indictment alleges that the defendant provided victim investors with operating agreements in which he claimed that all money invested would be used exclusively to place bets on sporting events and that the defendant would not be paid any compensation for placing the wagers but would retain a percentage of the winning profits.

To perpetuate the scheme, the defendant is accused of periodically emailing fraudulent financial statements to victims purporting to show substantial gains on their investments and employing an accounting firm to generate IRS forms based on fraudulent figures provided to the firm by the defendant.  The indictment alleges that the defendant’s sports wagers never generated the promised profits for investors and that the information provided to the accounting firm was fraudulent.  It is alleged that if a victim sought to withdraw some or all of their investments, the defendant used money from other victims’ contributions to cover the withdrawal.

In addition, it is also alleged that the defendant used investor funds to finance his personal expenses, including family vacations to Disneyland and Hawaii, spa treatments, lease payments on multiple vehicles and country club membership dues.

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

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

This case was investigated by the Cleveland FBI.  This case is being prosecuted by Assistant U.S. Attorneys Erica D. Barnhill and Brian McDonough.

CLEVELAND – John Pelton, 55, of Avon Lake, Ohio, a former Operator with a Northern Ohio public utility, pleaded guilty today to recording the computer keyboard strokes of coworkers while employed at the utility and to making false statements to FBI agents.

Pelton officially pleaded guilty to a Bill of Information charging him with attempting to access a secure computer and obtain information and providing a false statement to a government official.

According to court documents, while working as an Operator with the utility, Pelton purchased two physical keyloggers from eBay with the intent of using them at his place of employment.  A physical keylogger is an electronic device that stores and can transmit every keystroke made on a keyboard. 

Court documents state that a keylogger is capable of intercepting employee login credentials, messages and any other information typed into a computer.  Additionally, these devices have built-in memory capable of storing approximately 16 million keystrokes and could be accessed wirelessly with any Wi-Fi-enabled device, such as a smartphone, allowing the user to download the captured keystrokes remotely.

On Jan. 12, 2021, Pelton installed the keylogger devices at his place of employment on two computers in a control room accessible only via an access badge.  According to court records, Pelton installed one keylogger on a control room computer connected to the internet and the utility’s internal network and the other on a second computer used in the delivery of services.  Court documents state that the keyloggers would allow Pelton to capture an administrator’s password and access features that he otherwise was unable to access.

According to court documents, one of the computers Pelton installed a keylogger on collected data regarding the use of the utility’s electrical system.  The Operators at the utility have the capability to turn the power on and off throughout the network, and, if done incorrectly or inappropriately, an Operator could damage the transmission system, injure employees and possibly negatively impact the energy grid.

On May 24, 2021, Pelton was interviewed by FBI agents at his home regarding his use of the devices.  According to court records, Pelton told agents that he did not know what keyloggers were nor their function.  Pelton also denied researching keyloggers and stated that he did not remember purchasing or receiving the devices.  Court documents state that these claims were false, and Pelton made them knowing that they were false.

Pelton is scheduled to be sentenced on November 16, 2022, before U.S. District Judge David A. Ruiz.

This case was investigated by the Cleveland FBI.  This case is being prosecuted by Assistant U.S. Attorneys Segev Phillips and Daniel J. Riedl.

A Kent man was sentenced to two years of probation and one weekend of intermittent confinement after he previously pleaded guilty to flying an airplane without a valid airman’s certificate in June 2019.  Delbert Garfield Stewart, 71, was sentenced by U.S. District Judge Solomon Oliver, Jr., on Monday, August 8, 2022, and was also ordered to pay a fine of $5,000.

According to court documents, on three separate occasions, between June 2019 and March 2021, Stewart piloted a Bellanca Model 17-30A single-engine aircraft without a valid certificate.  Court records show that Stewart obtained a private pilot certificate through the Federal Aviation Administration (FAA) in 1978.  Additionally, court documents state that Stewart purchased the Bellance aircraft in October 2010, registered to his address in Kent, Ohio.

On November 14, 2013, the FAA notified Stewart of a 180-day suspension of his pilot certificate due to numerous FAA violations, specifically those that occurred during a September 2, 2013, flight from Paulding Northwest Atlanta Airport in Atlanta, Georgia, to Portage County Airport in Ravenna, Ohio. 

During this incident, the FAA stated that Stewart piloted his aircraft under conditions in which he was not authorized to fly and climbed to an elevation without notifying air traffic control.  Stewart responded to the FAA notice claiming that the FAA did not have jurisdiction over him as a private individual not engaged in commerce.  The FAA suspended Stewart’s certificate on February 6, 2014.  Stewart’s certificate remained suspended until the FAA revoked the certificate in October 2019, after Stewart had piloted the plane and landed without the landing gear fully extended.

Court records state that on separate occasions between June 2019 and March 2021, Stewart piloted his aircraft despite the February 2014 suspension and October 2019 revocation. Court documents describe these incidents as such:

• On June 20, 2019, Stewart piloted the aircraft from Portage County Regional Airport (KPOV) in Ravenna, Ohio, and landed at the Warsaw Indiana Airport (KASW) in Warsaw, Indiana.  While in Indiana, Stewart flew the aircraft on multiple flights with passengers on board.
• On July 5, 2020, Stewart piloted and landed the aircraft at KPOV with a passenger on board.  An FAA official advised Stewart that his airmen certificate was revoked and that the airworthiness certificate for the aircraft was also suspended.
• On March 8, 2021, Stewart flew from Paulding Northwest Atlanta Airport (KPUJ) in Georgia to KPOV Airport.  Prior to the flight, law enforcement advised Stewart that his airman certificate was revoked.

Prior to trial, Stewart filed motions to dismiss the charges against him, arguing, amongst other things, that neither Congress nor the FAA has the authority to regulate his conduct and their attempt to do so violated the Commerce Clause, as well as other Constitutional provisions.  The Court denied the motions, finding that the Commerce Clause allowed Congress to pass laws regulating instruments of commerce, such as airplanes, even if the pilot was not flying for payment.

On April 18, 2022, Stewart was set to go to trial on the matter before Judge Solomon Oliver, Jr., in Cleveland.  However, during jury selection, Stewart pleaded guilty to one count of flying an airplane without a valid airman's certificate on June 20, 2019.

This investigation was conducted by the U.S. Department of Transportation Office of Inspector General, Federal Aviation Administration, Department of Homeland Security, and Ohio State Highway Patrol.  This case was prosecuted by Assistant United States Attorneys Damoun Delaviz and Brad Beeson.

 

First Assistant U.S. Attorney Michelle M. Baeppler announced that the Financial Litigation Program (FLP) of the U.S. Attorney’s Office for the Northern District of Ohio collected full restitution in the amount of  $624,122.15 from a defendant convicted of participating in a securities fraud scheme that caused a $39 million loss to investors.

According to court records, a notice of judgment satisfaction was approved for Defendant Justin Esposito, of Thornwood, New York, on Saturday, August 6, 2022.  In 2016, Esposito and other codefendants were convicted of orchestrating a penny-stock fraud scheme that resulted in a $39 million loss to investors in the Northern District of Ohio and elsewhere.

As part of his role in the scheme, Esposito cold-called potential investors and sold stock in public companies that he knew were being manipulated.  Esposito was paid commission from coconspirators for these sales.  

In January 2017, Esposito was ordered to pay $624,122.15 in restitution to the defendants for his role in the scheme.

This case was investigated by the FBI.  The financial litigation was handled by Assistant U.S. Attorney Suzana K. Koch.  This case was criminally prosecuted by Assistant U.S. Attorney Brian M. McDonough.

The U.S. Attorney’s Office is responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.

While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

Joshua Allen Saunders, 27, of Akron, Ohio, was sentenced to 40 years in prison by U.S. District Judge John R. Adams on Thursday, August 4, 2022.  Saunders previously pleaded guilty to two counts of sexual exploitation of children and one count of receipt and distribution of visual depictions of minors engaged in sexually explicit conduct.

In addition to the sentence, Saunders was ordered to serve a lifetime of supervised release and must pay $55,000 in restitution.

“There is no greater priority for all of law enforcement than protecting our community’s children from harm and predators,” said First Assistant U.S. Attorney Michelle M. Baeppler.  “This lengthy sentence will ensure that this predator will no longer harm children and should send a message that this type of behavior only ends with significant time behind bars.”

“Identifying, investigating, and catching child predators is a critical part of our mission,” said Cleveland FBI Special Agent in Charge, Gregory Nelsen.  “The conniving conduct and domineering behavior Saunders exerted over his victims is detestable. The FBI is proud to collaborate with our federal, state, and local partners to ensure thorough investigations are conducted and we eliminate criminal behavior that exploits children.”

According to court documents, federal authorities began an investigation into Saunders after receiving information that he was involved in distributing child sexual abuse materials online.  On November 2, 2021, authorities executed a search warrant on Saunders at a residence in Akron.  During the search, agents seized and reviewed the contents of Saunders’ cell phone and observed two videos of Saunders engaged in sexual conduct with a minor.

The case was investigated by the Akron FBI and the Ohio Internet Crimes Against Children Task Force.  This case was prosecuted by Assistant U.S. Attorney Michael A. Sullivan.

 

###

CLEVELAND - Martin Escobar, 58, a former Mahoning County physician, was sentenced today to 25 years in prison by U.S. District Judge Donald C. Nugent after he previously pleaded guilty to 54 counts of illegally prescribing controlled substances—including two counts of distributing controlled substances that caused the deaths of two patients and one count of distributing a controlled substance to a person under the age of 21—and 31 counts of health care fraud.

“Mr. Escobar repeatedly distributed dangerous and highly addictive controlled substances to his patients and ignored signs of addiction and other red flags that his actions were causing harm to those who entrusted him with their care, and falsifying justifications for issuing prescriptions he knew should never have been written,” said First Assistant U.S. Attorney Michelle M. Baeppler.  “Due to his behavior, two patients died from overdosing on the drugs he illegally prescribed to them.  Our community is safer with Mr. Escobar now behind bars.”

“Violating a position of trust compounded by willfully neglecting the Hippocratic oath is cruel and cowardly,” said FBI Cleveland Special Agent in Charge, Gregory Nelsen.  “The sentence underscores the FBI’s unwavering commitment to investigating criminal activities and corrupt individuals that prey on innocent persons and endanger countless people.  Whether one individual or a network of criminals, the valuable partnerships the FBI holds with federal, state and local law enforcement continues to protect the public and make our communities safer.”

“Escobar’s disregard for the well-being of those under his care caused the death of two vulnerable patients and endangered the health of many others,” said Mario M. Pinto, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General.  “We will continue to work with our law enforcement partners to pursue medical professionals who fuel the opioid epidemic and neglect the care of their patients.”

According to court documents, between March 2015 and October 2019, Escobar prescribed controlled substances out of his Lake Milton medical office, including opioids such as oxycodone and hydrocodone, often in combination with benzodiazepines and stimulants, and did so outside the usual course of professional practice and without a legitimate medical purpose.

Escobar used false diagnoses, falsified patient pain intensity scales in medical charts, increased dosages of controlled substances and prescribed painkillers for prolonged periods without evidence of efficacy to support his unlawful prescription practices.  Furthermore, Escobar failed to pursue treatment options other than controlled substances and falsely claimed to have performed extensive physical examinations on his patients.

Escobar also ignored warning signs of patients’ drug addiction and abuse.  This included ignoring the results of his patients’ urine drug screen tests, many of which Escobar ordered and had performed in his own medical office so that he could bill the government for the tests.  These tests suggested that patients were abusing the drugs that Escobar had prescribed, using other controlled substances and selling their prescription drugs on the illegal secondary market.  As a result, Escobar was charged and pleaded guilty to health care fraud in connection with the illegal prescribing and urine drug screen tests.

In addition, in July 2015 and 2016, Escobar unlawfully prescribed opioids and other controlled substances to two patients without a legitimate medical purpose.  Both patients later fatally overdosed from those drugs.  In another instance, in April of 2018, Escobar unlawfully prescribed opioids to an individual under the age of 21 without a medical need.

“This guy thought he could outsmart the system by concealing his drug dealing behind a doctor’s coat – thankfully, our many partners in the investigation followed the paper trail of his prescription pad and stopped his scheme,” said Ohio Attorney General Dave Yost.  “This doctor will do no further harm behind bars, and Ohio’s taxpayers will benefit with less fraud in the healthcare system.”

The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, the Ohio Attorney General’s Healthcare Fraud Section and the Ohio Board of Pharmacy.  This case was prosecuted by Assistant U.S. Attorneys Elliot Morrison, Michael L. Collyer, Brendan O’Shea and Special Assistant U.S. Attorney Jonathan L. Metzler of the Ohio Attorney General’s Office.   

 

First Assistant U.S. Attorney Michelle M. Baeppler announced that a former Sergeant with the Erie County Sheriff’s Office was charged in a one-count indictment with deprivation of rights.

According to the indictment, Adam Bess, 34, of Sandusky, is accused of choking a victim while acting under the color of law on or about November 1, 2021.  The indictment states that Bess, acting as a law enforcement officer, willfully used unreasonable force on the victim.  It is alleged that, as a result of this offense, the victim suffered bodily injury.

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

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

This case was investigated by the Toledo FBI and the Erie County Sheriff’s Office.   This case is being prosecuted by Assistant U.S. Attorneys Michael J. Freeman and Tracey B. Tangeman.

An Akron man was arrested today and charged in a 26-count indictment with using proceeds obtained from the sale of controlled substances and a wire fraud scheme to purchase a residence in Akron and a Tesla vehicle on separate occasions. 

Nicholas R. Crawford, 41, of Akron, Ohio, was charged with 23 counts of money laundering, one count of wire fraud, one count of theft of government funds and one count of engaging in monetary transactions in property derived from specified unlawful activity.

According to the indictment, in June 2018, it is alleged that the defendant purchased a home for $325,000 in Akron, Ohio, using funds that contained proceeds derived from drug trafficking.  The indictment states that the defendant knew the proceeds involved were obtained through unlawful means and initiated wire and electronic transfers with the intent to conceal the nature of the drug trafficking funds.

Additionally, the indictment alleges that in July 2020, the defendant defrauded the Small Business Administration (SBA) by submitting a fraudulent COVID-19 Economic Injury Disaster Loan (EIDL) application with fictitious information in order to receive relief funding to which he was not entitled.  It is alleged that the defendant intentionally misrepresented personal and financial information in order to obtain an SBA EIDL loan.  The indictment states that the defendant then used $105,500 in SBA EIDL loan funding for personal expenses despite certifying that the loan proceeds would only be used for designated business expenses.  

In December 2020, court records state that the defendant purchased a 2020 Tesla Model X, using proceeds from the EIDL loan and from the sale of controlled substances.

Crawford is scheduled to be arraigned today before of Judge Donald C. Nugent in Cleveland.

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

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

This case was investigated by the FBI, IRS Criminal Investigations (CI) and Akron Police Department.  This case is being prosecuted by Assistant U.S. Attorney  Damoun Delaviz.

Former Westlake Investment Advisor Raymond A. Erker, 52, of Avon, Ohio, was sentenced today by U.S. District Judge Dan Polster to nearly 22 years in prison, or 262 months, following his conviction at trial of stealing more than $9.3 million from clients in a Ponzi scheme.  A restitution hearing concerning this matter was scheduled for December 9, 2022.

“Mr. Erker misled, cheated and conned over fifty victims, many of them elderly, into trusting him with their life savings and hard-earned retirement funds, all for guaranteed rates of return and low-risk investments that were fabricated,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Instead, Erker squandered the money he was entrusted with and caused financial ruin and pain for many.  Now, thanks to the work of law enforcement, Mr. Erker must repay his debt to these victims and our community.” 

“Be suspect of anyone who guarantees that an investment will perform a certain way, because all investments carry some degree of risk,” said Ohio Securities Commissioner Andrea Seidt. “Investors need to ask lots of questions and do extra research. Investors can call our Investor Protection Hotline at 877-683-7841 to find out if the person is licensed to sell securities and if the product is properly registered.”

According to court documents and evidence presented at trial, from January 2013 through July 2018, Erker devised a scheme that stole $9,366,976.37 from at least fifty-four investors. 

As part of the scheme, Erker sold investments to clients that he misrepresented as annuities and senior secured notes with no risk of loss and with a guaranteed rate of return.  Court documents state that Erker, without the approval or consent of investors, diverted funds to other entities that they controlled and their personal bank accounts. 

Additionally, Erker failed to disclose to clients that he maintained ownership interests in companies receiving investments from the scheme.  

To keep up with promised rates of return, Erker falsely represented that payments to previous investors were rates of return and interest when, in actuality, these payments were new investor funds, the defining characteristic of a Ponzi scheme.

To avoid detection, Erker set up office fronts in Delaware and Nevada, contracted with call centers and created false websites and account statements that purported to show investor account balances.

Erker was also convicted of making a false statement under oath.  On October 9, 2019, while under oath in the United States Bankruptcy Court for the Northern District of Ohio, Erker stated that he disclosed to investors that he owned the companies the investors gave him money to invest in, when in fact, Erker knew that statement to be false.

Co-defendants Kevin M. Krantz and Tara M. Brunst were previously sentenced for their roles in the scheme.

This investigation was conducted by the Ohio Department of Commerce Division of Securities, the United States Postal Inspection Service (USPIS) and the Westlake Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Brian McDonough and Kathryn Andrachik.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. 

Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals on a case-by-case basis. 

Reporting is the first step.  Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.  The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.

A Lorain man was sentenced to 105 months in prison by U.S. District Judge Pamela A. Barker on July 28, 2022, for his role in a drug trafficking organization responsible for distributing cocaine and heroin in the Lorain County area.

Prince Brown, 37, previously pleaded guilty to conspiracy to possession with intent to distribute cocaine and heroin, possession of a firearm as a felon and other drug possession charges.

According to court documents, from January 2019 to September 2020, Brown and codefendant Mohammed Hamid engaged in a drug trafficking conspiracy that purchased large quantities of cocaine and heroin and redistributed the drugs to other traffickers in Cleveland, Lorain and Elyria, including codefendants Robert Starr, Darian Lopez, Devan Grantham and Amos Jackson. 

Court records state that Brown was arrested in December of 2019 in Cleveland and had in his possession at the time of the arrest  96 grams of heroin and other narcotic substances along with a loaded firearm and $20,000 in drug trafficking proceeds. 

Brown is prohibited from possessing a firearm due to previous convictions of drug trafficking in the Lorain County Common Pleas Court.

Previously sentenced in this matter were Richard Starr, 29, of Fairview Park, Ohio, to 160 months; Amos Jackson, 39, of Elyria, Ohio, to 48 months; Darian Lopez, 28, of Lorain, Ohio, to 32 months and Devan Grantham, 27, of Elyria, Ohio, to 12 months in federal prison.  Mohammed Hamid, 31, of Avon Lake, Ohio, previously pleaded guilty to his role in the conspiracy and will be sentenced in the future.

This case was investigated as part of Operation Synthetic Opioid Surge (S.O.S.)., an initiative that seeks to reduce the supply of deadly synthetic opioids and to identify wholesale distribution networks and international and domestic suppliers in Lorain County.

The Drug Enforcement Administration (DEA), Elyria Police Department, Lorain Police Department, Lorain County Drug Task Force and the FBI Cleveland conducted the investigation.  This case was prosecuted by Assistant U.S. Attorneys Vasile C. Katsaros and Robert F. Corts.

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 www.justice.gov/OCDETF.

 

A Mogadore man was found guilty on Wednesday, July 27, 2022, of obstructing justice by retaliating against a witness.  Andrew F. Dodson, 33, was convicted by a federal jury following a three-day trial before Judge Donald C. Nugent in Cleveland.

According to court records and evidence presented at trial, in July 2021, federal authorities began an investigation into Dodson following his arrest for OVI and possession of chemicals that could be used to make explosive devices.  During the investigation, Dodson lied to federal authorities and pleaded guilty to making false statements in November 2021.  Court records state that Dodson was allowed to remain on bond and in the community following his guilty plea.

During this time, Dodson came into possession of a witness statement given to federal authorities during the prior investigation.  Court documents show that Dodson then contacted and threatened the witness with the intent to retaliate due to the witness’s cooperation.  Dodson was later arrested.

Dodson is scheduled to be sentenced on November 28, 2022, and faces a maximum possible sentence of 20 years in prison.

This case was investigated by the FBI Cleveland.  This case was prosecuted by Assistant U.S. Attorneys Brian S. Deckert and Jason W. White.

 

First Assistant U.S. Attorney Michelle M. Baeppler announced today that a Cleveland man was charged in a 16-count indictment with illegally obtaining more than $400,000 in pandemic unemployment insurance benefits using other people’s personal identifying information.

Osi Mokwunye, 44, was charged with one count of conspiracy to commit mail and wire fraud, five counts of mail fraud, five counts of wire fraud, and five counts of aggravated identity theft.

According to court documents, from July to November 2020, the defendant and his coconspirators are accused of submitting and causing the submission of fraudulent applications for pandemic unemployment insurance benefits to the California Employment Development Department (EDD), and other State Workforce Agencies around the country.

As part of the scheme, the indictment states that the members of the conspiracy knowingly made false statements and omissions on pandemic unemployment insurance benefits applications regarding employment history, residency and more to appear eligible to receive benefits.  As a result, it is alleged that the defendant and his coconspirators caused the California EDD and other State Workforce Agencies to approve more than $400,000 in unemployment insurance benefits in the names of unwitting individuals.  According to the indictment, the benefits were pre-loaded on bank-issued debit cards and sent through the U.S. mail to the defendant’s home.  After receiving the debit cards, it is alleged that the defendant used the cards to make cash withdrawals at various ATMs in the Northern District of Ohio.

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

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

The FBI Cleveland, Department of Labor (DOL) and the United States Postal Inspection Service (USPIS) investigated this case.  This case is being prosecuted by Assistant U.S. Attorney Erica D. Barnhill.

Federal law enforcement officials announced today that three indictments were unsealed in federal court, detailing charges against three men, two formerly of Northeast Ohio, who are believed to be currently residing in Lebanon. 

Named in the indictments are George Nakhle Ajaltouni, 47, formerly of North Olmsted; Jean Youssef Issa, 48, of Batroun, Lebanon; and Nakhle “Mike” Nader, 51, formerly of Cleveland.  Ajaltouni and Issa are charged for their roles in a scheme to smuggle and illegally ship firearms from Cleveland to Lebanon.  Nader is charged in a separate indictment with income tax evasion.

The FBI is seeking information that may lead to the arrests of George Ajaltouni and Nakhle “Mike” Nader.  Jean Youssef Issa was recently arrested pursuant to a Red Notice issued by Interpol.

The three indictments describe separate schemes, one involving Ajaltouni and Issa; one involving Ajaltouni alone; and the other solely concerning Nader.  While the schemes are separate, it is believed that Ajaltouni and Nader are acquaintances and that the two men are currently residing near Batroun, Lebanon.  The indictments were originally filed between 2016 - 2019, and efforts to apprehend Ajaltouni and Nader remain ongoing.

Ajaltouni and Issa are officially charged with conspiracy to smuggle and illegally ship firearms, smuggling goods from the U.S., unlawful delivery of firearms to a common carrier, control of arms exports and imports and unlicensed dealing in firearms.

According to the indictment, it is alleged that from May 2011 to September 2014, Ajaltouni and Issa conspired together to smuggle hundreds of firearms from Cleveland to be resold in Lebanon. As part of the conspiracy, it is alleged that Ajaltouni purchased firearms from federal firearms dealers and private sellers throughout Northeast Ohio and elsewhere.  In addition, the indictment states that Ajaltouni frequently attended gun shows and paid cash to purchase firearms from exhibitors.

It is further alleged that in order to ship the weapons, Ajaltouni purchased used automobiles from other individuals, which were then used to store and conceal firearms inside the doors and body panels of the vehicles.  The indictment states that Issa then traveled from Lebanon to Cleveland to assist Ajaltouni with concealing the firearms in the vehicles for transportation via ship.  

These vehicles were then shipped to Lebanon, where the firearms were retrieved and resold.  Ajaltouni and Issa would then travel between Cleveland and Beirut to ensure the smuggled weapons arrived.

Ajaltouni is also charged in a separate indictment with naturalization fraud after obtaining naturalization and citizenship in 2009 that he was not entitled to nor eligible to receive.  

Named in the third indictment unsealed today is Nakhle “Mike” Nader.  Nader is charged with four counts of income tax evasion related to various businesses he owned and operated in Cuyahoga County.

According to the Nader indictment, it is alleged that from 2012 to 2015, Nader owned and managed the daily operations of three liquor stores in Cuyahoga County.  During this time, Nader is accused of withholding information from his tax preparer regarding sources of additional income, debt forgiveness and using business monies to pay personal expenses.

It is alleged that Nader regularly used cash or funds from business bank accounts to pay for personal expenses, including rent, car payments, mortgage payments, parking, travel, dining, alimony, clothing, jewelry and more.

The FBI is asking that if anyone has information on the current whereabouts of Ajaltouni and/or Nader, to please contact the FBI Tip Line at 1-800-225-5324.  Your identity can remain anonymous.

An indictment is only a charge and is not evidence of guilt. The defendants are 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 a 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 violation.  In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.

The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); IRS Criminal Investigation; Customs and Border Protection (CBP); Homeland Security Investigations (HSI); Department of Agriculture Office of Inspector General (USDA-OIG); Social Security Administration Office of Inspector General (SSA-OIG); the Cleveland Division of Police and the North Olmsted Police conducted the investigation. These cases are being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd, Matthew B. Kall and Robert J. Patton of the Northern District of Ohio.

Click here to view the FBI Wanted poster for George Nakhle Ajaltouni. 

Click here to view the FBI Wanted poster for Nakhle "Mike" Nader. 

A Florida man pleaded guilty today to conspiring to defraud the IRS in connection with his ownership and operation of illegal gambling businesses in Canton.

According to court documents and statements made in court, from 2009 through 2018, Larry Dayton, 46, along with Jason Kachner, Rebecca Kachner, and other co-conspirators, owned and operated two illegal gambling businesses, Skilled Shamrock and Redemption. Dayton admitted to conspiring with others to defraud the IRS by filing false tax returns that omitted the cash income he received from the gambling businesses and by using a nominee to conceal his ownership. From 2012 through 2017, Dayton did not report more than $2 million in income he received from Skilled Shamrock and Redemption. Dayton and others also created a false “purchase agreement” where he purported to sell the assets of the gambling business to a nominee owner’s entity.

A sentencing hearing for Dayton will be scheduled at a later date. He faces a maximum penalty of five years in prison for conspiring to defraud the IRS. 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.

On July 14, Jason and Rebecca Kachner pleaded guilty for participating in the tax conspiracy.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio made the announcement.

IRS-Criminal Investigation, the U.S. Department of the Treasury, Office of the Inspector General, the Ohio Casino Control Commission, and the Ohio Casino Control Commission are investigating the case. Homeland Security Investigations provided substantial assistance.

Trial Attorneys Richard M. Rolwing and Sam Bean of the Tax Division and Assistant U.S. Attorneys Robert Patton and David Toepfer for the Northern District of Ohio are prosecuting the case.

Ralph L. Millender, 47, of Akron, Ohio, was sentenced on Tuesday, July 12, 2022, to 15 years in prison by U.S. District Judge Christopher A. Boyko after Millender pleaded guilty to being a felon in possession of a firearm and ammunition.

According to court records, on November 2, 2019, Akron Police Officers arrested Millender following an altercation he had with another individual.  During the dispute, officers became aware that Millender possessed a firearm in his vehicle.  Officers then searched the vehicle and located a loaded, semiautomatic weapon. 

Millender is prohibited from possessing a firearm due to multiple previous convictions of domestic violence in the Summit County Court of Common Pleas.

During sentencing, Millender was designated as an Armed Career Criminal due to three prior convictions for violent felonies committed on separate occasions.

This case was investigated by the Akron Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).  This case was prosecuted by Assistant U.S. Attorney Christopher J. Joyce.

First Assistant U.S. Attorney Michelle M. Baeppler announced that Juan R. Grogan, 30, of Canton, Ohio, was sentenced on Wednesday, July 13, 2022, to more than fifteen years in prison by U.S. District Judge Donald C. Nugent.  Judge Nugent pronounced the sentence after Grogan was found guilty at trial of possession with intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking and felon in possession of a firearm.

According to court documents and evidence presented at trial, on December 7, 2020, law enforcement officials sought to arrest Grogan on outstanding warrants that had been issued by the Canton Municipal Court.  While seeking to apprehend Grogan, an investigator observed Grogan flee the area.  Investigators also located Grogan’s vehicle parked on the street where investigators were searching for Grogan.  Law enforcement officials were not able to apprehend Grogan that day. 

Officials then searched Grogan’s vehicle and located a loaded Glock, model 30 handgun with an extended magazine, a digital scale and a clear plastic bag containing brown powder.  The brown substance was later tested and found to contain 75.6 grams of heroin and fentanyl.

Grogan was later arrested on December 10, 2020. 

This case was investigated by the FBI, United States Marshal Service, Canton Police Department and Stark County Sheriff’s Office.  This case was prosecuted by Assistant U.S. Attorney Damoun Delaviz.

AKRON  – First Assistant U.S. Attorney Michelle M. Baeppler announced that Ronald Smith, 39, of Akron, was charged in a 22-count indictment with dog fighting, drug trafficking and illegal possession of a firearm.

The indictment charges Smith with 15 counts of possession and training of dogs for the purposes of an animal fighting venture; conspiracy to distribute and possess with intent to distribute a controlled substance; distribution of a controlled substance; possession with intent to distribute a controlled substance and felon in possession of a firearm. 

According to the indictment, Smith owned and maintained two residential properties on Fultz Street and Herman Avenue in Akron, Ohio. 

In April and May of 2022, the indictment states that Smith possessed items used to train and prepare dogs for participation in dog fighting, including two treadmills designed for dogs; a caged rabbit placed in front of a treadmill; performance-enhancing and first-aid-related dog medication; numerous "break sticks" spattered with blood and bearing teeth marks and a walled pit spattered with blood at the Fultz Street and Herman Avenue residence.

In addition, the indictment states that authorities recovered eight pit bull-type dogs from the Fultz Street residence and seven pit bull-type dogs from the Herman Avenue residence.

Smith was also charged with illegal possession of three firearms and participating in a conspiracy to possess and distribute oxycodone, fentanyl and fentanyl analogues.

Smith is prohibited from possessing a firearm due to previous convictions of aggravated assault, burglary, possession of cocaine, trafficking heroin, having weapons under disability and disrupting public services in the Summit and Medina County Courts of Common Pleas.

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

This case was investigated by the Drug Enforcement Administration (DEA),  U.S. Department of Agriculture Office of Inspector General (USDA OIG), Akron Police Department and the Summit County Sheriff's Office.  Assistance was provided by the United States Marshals Service (USMS) and the Humane Society of Summit County (HSSC).

This case is being prosecuted by Assistant U.S. Attorneys Brad J. Beeson and Marc D. Bullard.

A Cleveland man and member of the “8Ave” street gang known to operate in the city of Cleveland’s 5th District was convicted by a federal jury on Monday, July 11, 2022, of participating in a conspiracy to distribute fentanyl, crack cocaine and illegal possession of a firearm.

Following a four-day trial, Kindell Smith, 32, of Cleveland, was convicted of conspiracy to distribute and possess with intent to distribute controlled substances, two counts of distribution of controlled substances, possession with intent to distribute controlled substances, namely fentanyl and possession of a firearm in furtherance of a drug trafficking crime along with being a felon in possession of a firearm.

According to court documents, on April 14, 2020, law enforcement officers with the Southeast Area Law Enforcement (SEALE) began an investigation into suspected drug trafficking activities of Smith.  As part of the investigation, authorities encountered Smith distributing fentanyl and cocaine near the 3200 block of Central Avenue in Cleveland. 

On May 19, 2020, authorities again encountered Smith, this time with codefendants Darrell Douglas and Dreshawn Maddox, who each have been convicted and sentenced at a prior date, distributing heroin from a vehicle.  During this encounter, authorities approached the vehicle and ordered the occupants to show their hands.  The vehicle then sped away from the scene and struck the driver’s side of a law enforcement vehicle. 

Officers removed the occupants from the vehicle and observed Smith attempting to hide a firearm under the driver’s seat.  The firearm belonging to Smith was later recovered along with various amounts of fentanyl and crack cocaine.

Smith is prohibited from possessing a firearm due to previous convictions of drug trafficking and felonious assault in the Cuyahoga County Common Pleas Court.

Smith is scheduled to be sentenced on October 25, 2022, and faces a maximum possible sentence of 25 years in prison. 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Cleveland Division of Police and the Southeast Area Law Enforcement.  This case was prosecuted by Assistant U.S. Attorneys Payum Doroodian and Robert F. Corts.

 

First Assistant U.S. Attorney Michelle M. Baeppler announced that four Canadian men were charged for their roles in an alleged conspiracy that persuaded investors in the United States and Canada to invest in diamonds and other jewelry through false and misleading information.

Named in the charging documents are James Gagliardini, 44, of Unionville, Ontario; Michael Shumak, 52, of Markham, Ontario; Anthony Palazzolo, 64, of Pickering, Ontario and Jack Kronis, 63, of Toronto, Ontario.  The defendants are each charged with one count of wire fraud.

According to court documents, the defendants portrayed themselves as employees of Paragon International Wealth Management, Inc., a Canadian investment firm that sold investors diamonds and other jewelry items via unsolicited phone calls to individuals in the United States and Canada. 

It is alleged that from 2013 to 2018, Paragon would purchase lists of potential customers in the U.S. and Canada and made unsolicited telemarketing phone calls to these individuals.  During these phone calls, it is alleged that Paragon representatives persuaded potential investors to make small investments in “pink diamonds,” which Paragon claimed would increase in value.  If an individual agreed to invest, court documents state that Paragon would often mail the customer a real pink diamond and a legitimate appraisal certificate as a show of good faith.

According to court records, after some time, Paragon would contact the customer again to persuade them to invest more money using false or misleading information and several fictitious schemes it had concocted.

One scheme is alleged to have involved informing investors that a wealthy international buyer would purchase the investor’s diamonds at a significant profit if the investor gave Paragon more money to increase the diamond’s physical size.  Another scheme allegedly involved asking investors to give Paragon more money in order to “upgrade” their diamonds and make them more valuable at fabricated diamond auctions.  A third scheme allegedly involved sending customers fraudulent appraisal certificates, which inflated the value of an investor’s diamonds they purportedly owned.

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

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

This case was investigated by the FBI Cleveland.  This case is being prosecuted by Assistant U.S. Attorneys James P. Lewis and Brad J. Beeson.

Reuben Rankin, 36, of Cleveland, was sentenced today by U.S. District Judge Pamela A. Barker to 40 years in federal prison and ordered to pay special assessments of $5,500 following his convictions at trial of sex trafficking of a minor, production of child pornography, assaulting a federal agent with a deadly weapon, discharging a firearm during a crime of violence and felon in possession of a firearm.  

“Trafficking children is a heinous crime, one that has earned the defendant every day of his 40-year prison sentence,” said First Assistant United States Attorney Michelle M. Baeppler.  “In addition to this evil act, this defendant recklessly endangered the lives of federal law enforcement officers, and our community is now safer with him behind bars.  The Department of Justice will continue to bring the full force of the law against traffickers in Ohio and around the country.”

“Today’s 40-year sentence is a testament to the collaboration between state, local and federal agencies coming together to hold human traffickers accountable and provide victims a tangible example on how we come together to protect victims, prosecute perpetrators and implement a whole-of government partnership with law enforcement and our NGO partners who are critical in this space,” said Angie Salazar, special agent in charge for HSI Detroit.

According to court documents, in May 2019, Rankin engaged in sex trafficking of a minor and production of child pornography in order to raise money to purchase drugs, clothing and an SUV.  Rankin relied heavily on income earned from commercial sex acts to fund his lifestyle. 

On October 30, 2019, law enforcement officers with Homeland Security Investigations (HSI) executed a search warrant at Rankin’s residence in Cleveland as part of an investigation into his activities.  As law enforcement agents approached the residence, Rankin fired six shots in rapid succession at the agents through the window of his vehicle parked in the driveway.  An agent returned fire with one shot.  Officers then arrested Rankin and recovered a .45 caliber pistol, spent rounds of ammunition, drugs and two cell phones from his vehicle.

"The HSI Detroit Special Response Team demonstrated extraordinary discipline and restraint in this very difficult situation,” said Jared Murphey, SRT Commander.  “The brave members of our team exposed themselves to extreme danger during this operation.  It is their honor to protect the community from dangerous criminals like this defendant.”

Rankin is prohibited from possessing a firearm or ammunition due to previous convictions of kidnapping, witness intimidation, aggravated assault and abduction in the Cuyahoga Common Pleas Court.

Rankin was convicted by a federal jury on January 28, 2022, of all counts of a superseding indictment following a nine-day trial in Cleveland.

This case was investigated by Homeland Security Investigations, the Cuyahoga County Human Trafficking Task Force and the Cleveland Police Department.  This case was prosecuted by Assistant United States Attorneys Carol M. Skutnik, Edward F. Feran and Vanessa V. Healy.

Jereld Maurice Swain, of Louisville, Ohio, was sentenced on Friday, July 8, 2022, by U.S. District Judge Christopher A. Boyko to more than six years in prison and ordered to forfeit $3,740 after pleading guilty to possession with intent to distribute fentanyl and cocaine.

According to court documents, on March 11, 2021, law enforcement authorities executed a search warrant at Swain’s residence.  Swain was released from prison on August 22, 2020, and was placed on parole.  During the search of the residence, officers obtained multiple bags of a white substance later identified as fentanyl and cocaine, as well as packaging materials, a digital scale and $3,740 in U.S. currency.

This case was investigated by the Ohio Adult Parole Authority and the Canton FBI.  This case was prosecuted by Assistant U.S. Attorney Damoun Delaviz.  

Hasan Howard, 23, of Cleveland, was sentenced on Wednesday, July 6, 2022, by U.S. District Judge Sara Lioi to more than six years in prison and ordered to pay $261,319.28 in restitution after he pleaded guilty to leading a conspiracy that bought stolen credit and debit card information from the dark web and used it to purchase expensive watches, chains, jewelry and services at retail locations around Northeast Ohio.

Howard pleaded guilty in March 2022 to conspiracy to commit access device fraud, access device fraud and aggravated identity theft.

According to court documents, from September to May 2020, Howard recruited a number of coconspirators in Cleveland and elsewhere, including codefendants Robert Nathaniel Andre Thomas, Tyvione Guthery and Jaelen D. Lattimore, to participate in a scheme that bought stolen credit and debit card information from the dark web and used it to purchase expensive jewelry and services at retail locations around Northeast Ohio.

As part of the conspiracy, Howard used the stolen financial information to create fraudulent credit and debit cards, which he then provided to his coconspirators.  Howard and the others would then use the cards to make purchases of expensive merchandise and services, including jewelry.  Howard and the coconspirators purchased the items either over the phone or in-store, using fraudulent identification cards embossed with the stolen information of others.

In one instance, court documents state that Howard, Guthery and Lattimore purchased a Rolex watch from a jewelry store in Westlake, Ohio, valued at $19,062 using a fraudulent credit card.  In a separate instance, court records show that Howard again used a fraudulent credit card to purchase four diamond and gold bracelets from a jewelry store in Canton, Ohio, valued at $26,463.

After obtaining the jewelry, Howard frequently sold the stolen items to others and used the proceeds for his own benefit and to pay his coconspirators.

Howard was arrested on May 20, 2021, with codefendant Lattimore, after purchasing more than $20,000 in items from jewelers in Aurora, Ohio.  At the time of the arrest, court documents state that Howard and Lattimore had in their possession a credit card embossing machine and three Rolex watches.

In total, court records show that Howard and the other coconspirators made fraudulent purchases at approximately 30 stores and caused a total loss of $261,319.28.

Codefendants Thomas, Guthery and Lattimore have each pleaded guilty to their role in the scheme.

This investigation was conducted by the FBI Cleveland and the Avon, Westlake, Aurora and Cleveland Police.  This case was prosecuted by Assistant U.S. Attorney Bryson N. Gillard.

 

Aaron J. Gaines, 39, of Akron, was sentenced on Wednesday, July 6, 2022, to 25 years in prison by U.S. District Judge James S. Gwin.  Judge Gwin pronounced the sentence following Gaines’ guilty plea to a seven-count indictment that charged him with robbery, carjacking and illegal possession of a firearm.

“This defendant committed a series of violent crimes, armed with a firearm, that put the lives of multiple innocent people in danger,” said First Assistant U.S. Attorney Michelle M. Baeppler.  “As evident by this lengthy sentence, violent crimes, particularly those committed while illegally possessing a firearm, will only result in a long time in federal prison.”

“Multiple criminal offenses combined with illegal possession of a firearm is a serious felony,” said Philip E. Frigm, Jr., Acting Special Agent in Charge, FBI Cleveland.  “The FBI is focused on identifying violent offenders and performing investigative work that ultimately results in justice. This sentence reflects our commitment with federal, state, and local partners to keep our communities safe and protect the American public.”

According to court documents, on January 25, 2021, Gaines entered a convenience store on Arlington Street in Akron, brandished a firearm and stole approximately $500 from the store’s lottery register.  Akron police officers responded and determined that Gaines had committed the robbery. 

Later that night, police officers responded to an Akron residence for a report of an armed robbery and felonious assault.  Upon arrival, officers learned that Gaines had brandished and discharged a firearm at an occupant of the residence in an attempt to steal a vehicle parked nearby.  The vehicle keys were stolen, but the vehicle remained.

After the attempted carjacking, police responded to the intersection of Fountain Street and Carroll Street for a report of a car theft.  Police interviewed the victims at the scene and established that Gaines had brandished a firearm and stole the victim’s vehicle.  Gaines crashed the vehicle soon after stealing it and then fled on foot.  Police recovered a firearm from the driver’s side floorboard of the car.

Gaines was later apprehended and pleaded guilty in March 2022 to interference with commerce by robbery, possession of a firearm in furtherance of a crime of violence, attempted carjacking, carjacking and felon in possession of a firearm.

Gaines is prohibited from possessing a firearm due to previous convictions of aggravated burglary and kidnapping in the Summit County Court of Common Pleas.

This case was investigated by the FBI and the Akron Police Department.  This case was prosecuted by Assistant U.S. Attorneys Peter E. Daly and Toni Beth Schnellinger Feisthamel.

 

A Nigerian national made his initial appearance in a federal court in Cleveland today following his extradition from Ghana to the Northern District of Ohio to face charges for his alleged role in a conspiracy that obtained stolen financial information, made fraudulent and unauthorized purchases of retail goods and gift cards and stole funds from victim bank accounts in Northern Ohio and elsewhere.

Blessing Adeleke, 31, of Nigeria, was charged in a 17-count indictment with one count of conspiracy to commit bank fraud and 16 counts of bank fraud.

Ghanian authorities arrested Adeleke on March 14, 2022, in Accra, Ghana.  Following judicial proceedings, Ghanaian authorities transferred Adeleke into U.S. custody on June 28, 2022.

During his initial appearance, Adeleke waived his detention hearing and was remanded to the custody of the U.S. Marshals.  

According to court documents, from January 2014 through October 2016, Adeleke served as an administrator for an online marketplace, Shad0w.info, where compromised data, such as credit numbers and personally identifiable information (PII), were sold. 

As part of the conspiracy, it is alleged that Adeleke and others obtained stolen credit card information and purchased items, such as retail goods and gift cards for themselves.  It is alleged that Adeleke shared this stolen credit card information with others, including co-defendant Kylie Ann Harlow. 

The indictment states that Adeleke and Harlow shipped retail goods purchased with the stolen financial information to Harlow and others and, in some instances, returned the goods and gift cards to retail stores to obtain cash.  It is alleged that Adeleke and Harlow eventually forwarded the fraudulently obtained goods, gift cards and cash to other members of the conspiracy for their personal enrichment.

Additionally, Adeleke is charged with gaining access to online victim bank accounts in Northern Ohio and elsewhere and transferring thousands of dollars to Harlow and other members of the conspiracy.

Kylie Ann Harlow previously pleaded guilty to her role in the scheme and was sentenced in June 2021.

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

This case was investigated by the FBI.  This case is being prosecuted by Assistant U.S. Attorneys Daniel J. Riedl and Brian S. Deckert.

The U.S. Department of Justice’s Office of International Affairs provided significant support and assistance in securing the defendant’s arrest and extradition from Ghana. The U.S. Department of Justice thanks its Ghanian partners, specifically the Ministry of Interior and the Office of the Attorney General and Ministry of Justice, for supporting this extradition.  The FBI Legal Attaché in Accra and the U.S. Marshals Service also provided significant support and assistance to Adeleke’s extradition.

CLEVELAND – Devonte L. Fellows, 26, of Cleveland, Ohio, was sentenced on Thursday, June 30, 2022, to more than 27 years in prison by U.S. District Judge Donald C. Nugent after his conviction at trial of distributing fentanyl that led to the death of a Cuyahoga Falls individual.

According to court documents and evidence presented at trial, in April 2019, detectives with the Cuyahoga Falls Police Department began an investigation into the overdose death of an individual found unresponsive in a Cuyahoga Falls residence.  During the investigation, authorities recovered from the residence a substance that contained fentanyl. 

The Summit County Medical Examiner’s Office performed a full autopsy of the victim and determined that the cause of death was acute fentanyl toxicity.  Court records state that investigators later determined that Defendant Devonte L. Fellows knowingly and intentionally distributed the fentanyl to the victim, who later ingested it, overdosed and died. 

A federal jury convicted Fellows in March 2022 of one count of distribution of fentanyl, which contained a sentencing enhancement due to the death of an individual resulting from the distribution of the controlled substance.

This investigation was conducted by the Cuyahoga Falls Police Department and the FBI.  This case was prosecuted by Assistant U.S. Attorneys Peter E. Daly and Christopher J. Joyce.

First Assistant U.S. Attorney Michelle M. Baeppler announced that a Toledo woman was charged in a two-count indictment for purchasing a firearm for a convicted felon.

Taylor Elysse Corggens, 29, was charged with making a false statement during the purchase of a firearm and providing a false statement to federal agents.

According to court documents, on May 24, 2021, Corggens and Lamondre Gaston, 32, of Toledo, were observed arriving together and entering a licensed federal firearms dealer in Oregon, Ohio.  Court documents state that once inside the store, video footage depicts Gaston pointing out a firearm and handling it.  Gaston is prohibited from possessing a firearm due to previous convictions of aggravated assault and heroin trafficking in the Lucas County Court of Common Pleas. 

It is alleged that after Gaston handled the firearm, Corggens then completed the transaction to purchase the weapon.  During the transaction, Corggens filled out ATF Form 4473, which asks the buyer: “Are you the actual transferee/buyer of the firearm(s) listed on this form…” and specifically states in bold, “Warning: You are not the actual transferee/buyer if you are acquiring the firearm(s) on behalf of another person. If you are not the  actual transferee/buyer, the licensee cannot transfer the firearm(s) to you.”

Court records state that Corggens checked the box, indicating that she was the buyer of the weapon.

On June 8, 2021, Gaston was arrested by officers with the Toledo Police Department and was found to be in possession of the weapon that Corggens had purchased.  Federal law enforcement authorities interviewed Corggens regarding the incident, and it is alleged that Corggens indicated to authorities that Gaston did not accompany her, Corggens, to purchase the weapon.   

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

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Homeland Security Investigations and the Toledo Police Department.  This case is being prosecuted by Assistant U.S. Attorney Robert N. Melching.

11 individuals in the Northeast Ohio area were charged today in a five-count indictment for participating in a conspiracy that stole mail from the United States Postal Service (USPS), obtained checks within that stolen mail, and altered, forged and duplicated those checks for financial gain.

Named in the indictment are Elijah S. Payne, 21, of Streetsboro; William D. Saunders, 21, of Cleveland Heights; Cameron J. Proctor, 20, of Willowick; Tavion L. Bolden, 22, of Cleveland; Rashawn J. Creer, 22, of Cleveland Heights; Maurice A. Mowler, 22, of Kent; Latrent M. Redrick, 25, of Cleveland, Janiya M. N. Smith, 22, of Richmond Heights; Lady M. Walker, 28, of Cleveland; Antoine  R. Whitsett, 22, of Euclid and Tyrone Williams, 21, of Euclid.

Defendants Williams, Creer, Whitsett, Proctor, Mowler and Saunders were arrested by law enforcement authorities today and Defendant Bolden was previously arrested.  Arrest warrants have been issued for the remaining defendants.

The defendants are each charged with one count of conspiracy to commit bank fraud.  Defendant Payne is charged with additional counts of bank fraud and possession of stolen mail.  Defendant Proctor is also charged with an additional count of theft of mail by a postal employee.

According to the indictment, the defendants are accused of participating in a conspiracy that stole checks from the U.S. mail and fraudulently altered and duplicated those checks to then be deposited with various banks.  In order to execute their scheme, members of the conspiracy are accused of unlawfully accessing U.S. mail collection boxes using stolen or otherwise unlawfully obtained collection box keys, sometimes directly from postal employees.

In one instance, it is alleged that Defendant Proctor, a postal employee at the time, stole mail in his custody and sold it, along with mail collection box keys, to other members of the conspiracy.

After obtaining and altering checks from the stolen mail, it is alleged that the conspirators used Instagram to recruit other co-conspirators to use their bank accounts to cash the stolen, altered and forged checks.

As a result of the scheme, the defendants caused an approximate loss of over $1.5 million.

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

This case was investigated by the United States Postal Inspection Service (USPIS) with assistance from the Cleveland Police Department, Rocky River Police Department, Middleburg Heights Police Department, Seven Hills Police Department and the United States Postal Service Office of the Inspector General (USPIS OIG).  This case is being prosecuted by Assistant U.S. Attorney Jason W. White.  

First Assistant U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a nine-count indictment charging Jaylen Harris, 19, of Beachwood, Ohio, Lavelle Jones, 18, of Warrenville Heights, Ohio, Devin Rice, 20, of Cleveland, Ohio, and Hakim Benjamin, 20, of Cleveland Heights, Ohio, with organizing and engaging in a conspiracy to steal and sell high-end vehicles, rob Postal Service carriers and steal from the U.S. mail.

Defendants Harris, Jones, Rice and Benjamin are each charged with conspiracy to commit sale or receipt of stolen vehicles and sale or receipt of stolen vehicles.  Defendants Rice, Jones and Harris are charged with additional counts of possession of stolen mail.  Defendant Rice is also charged with aiding and abetting the robbery of a postal carrier and stealing keys adopted by the Post Office.  Defendant Harris is charged with an additional count of illegal possession of a machine gun.

According to court documents, from December 2021 to February 2022, the defendants are accused of stealing high-end vehicles from car dealerships in Michigan and transporting the vehicles to be sold in the Northern District of Ohio.  The indictment states that the defendants targeted specific vehicles to steal and purchase, including the Dodge Durango, Dodge Ram TRX, Dodge Hellcat, Audi 8 and others.

In addition to the car theft conspiracy, Defendants Rice, Jones and Harris are charged with organizing and engaging in a conspiracy to rob Postal Service carriers, steal Postal Service mail keys and illegally obtain mail from Postal Service collection boxes. 

Court documents state that the defendants sought to obtain Postal Service collection box keys from mail carriers in order to steal checks and other items of value from the U.S. mail.  It is alleged that the defendants would often rob mail carriers of their collection box keys while on duty and then pull checks and other items of value from the mail.

On January 31, 2022, Defendant Rice was arrested by law enforcement authorities after committing robbery and assault of a Postal Service carrier.  During the arrest, it is alleged that Rice was found to be in possession of various pieces of stolen mail.  

On February 10, 2022, a search warrant was executed at a hotel where Defendants Harris and Jones were residing.  During the search, authorities obtained multiple pieces of stolen mail and a firearm belonging to Harris that was modified to fire as a machinegun. 

Court records state that as a result of the various schemes, the defendants caused an estimated potential loss of $2,700,000.

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

If convicted, the defendants’ sentence will be determined by the court after a review of factors unique to this case, including prior criminal record, if any, role in the offenses, and the characteristics of the violation.

In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.

This case was investigated by the FBI, United States Postal Inspection Service (USPIS), Ohio State Highway Patrol, Ohio Bureau of Motor Vehicles, Cuyahoga County Criminal Investigators, Beachwood Police Department and Shaker Heights Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Kathryn G. Andrachik and Jason W. White.

A Bay Village man pleaded guilty today to an Information charging him with filing a false income tax return. 

According to court documents, in April 2018, Douglas Fischback, 58, of Bay Village, Ohio, falsely understated his income on his tax return for the year 2017 by approximately $86,427. 

Fischback is scheduled to be sentenced on September 29, 2022.

This case was investigated by the IRS Criminal Investigation (CI) and is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould.

A Uniontown man pleaded guilty on Tuesday, June 21, 2022, to attempting to coordinate a murder-for-hire plot.  Scott Allen Renninger, 53, pleaded guilty in federal court to one count of use of interstate commerce facilities in the commission of murder-for-hire.

According to court documents, from October to November 2020, Renninger met with an individual, posing as a “hitman,” and discussed offering the individual money in exchange for the murder of a victim. 

Court documents state that Renninger and the individual had frequent contact, and Renninger provided the individual with a photograph of the victim, license plate information and other materials that disclosed the victim’s house number and street address.  On one occasion, Renninger stated to the individual that they needed to figure out a way to communicate, possibly using disposable phones and confirmed his desires to make the victim “disappear.”

During subsequent meetings, Renninger and the individual again discussed the plot and agreed upon a price of $20,000 for the murder.

On November 17, 2020, federal authorities announced the arrest of Renninger at his residence without incident.  The victim was unharmed.

Renninger is scheduled to be sentenced on September 21, 2022.

This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Brad J. Beeson.

Brandon J. Sharp, 34, of Lorain, Ohio, was sentenced to more than 14 and a half years in prison on Tuesday, June 21, 2022, by U.S. District Judge Donald C. Nugent after he was convicted at trial of four counts of possession with the intent to distribute controlled substances.

According to court documents and evidence presented at trial, on June 29, 2020, law enforcement officers with the Lorain Police Department received an anonymous tip regarding the location of various amounts of narcotics stored under the bumper of a vehicle.  Police responded to the site and confirmed the presence of the drugs.

While police were investigating, a woman arrived at the scene and explained to officers that the vehicle was used by her boyfriend, Defendant Brandon Sharp, for work.  Sharp later spoke to police via phone and confirmed that the vehicle belonged to his employer.

Law enforcement investigators then obtained and executed a search warrant for the vehicle.  During the search, investigators seized various amounts of fentanyl, fentanyl analogues, heroin, cocaine and over $2,000 in U.S. currency.  Investigators also discovered a cell phone linked to Sharp and various documents and pieces of mail bearing Sharp’s name, phone number and address in the vehicle. 

Sharp was later arrested on December 28, 2020.

This case was investigated by the Lorain Police Department and the FBI.  This case was prosecuted by Assistant U.S. Attorneys Robert J. Kolansky and Vanessa V. Healy.

This case is part of Operation Synthetic Opioid Surge (S.O.S.)., an initiative that seeks to reduce the supply of deadly synthetic opioids and to identify wholesale distribution networks and international and domestic suppliers in Lorain County.

 

First Assistant U.S. Attorney Michelle M. Baeppler announced that David B. Huff, 79, of Dover, Ohio, pleaded guilty today to an Information charging him with a violation of the Bald and Golden Eagle Protection Act.

According to court documents, on October 7, 2021, Huff shot and killed a bald eagle with a rifle.  Court documents state that Huff owns farmland and several fields in Tuscarawas County and routinely conducts inspections of the land for the presence of pests and rodents.  During one of these inspections, Huff shot and killed a bald eagle with a rifle. 

The Bald and Golden Eagle Protection Act of 1940 prohibits anyone, without a permit, from, among other actions, shooting bald or golden eagles.   

After shooting the eagle, Huff picked up the animal and discarded it in the tree line of a bordering field. 

As part of the terms of the plea, Huff has agreed to make restitution to the United States Fish and Wildlife Service, in care of the National Fish and Wildlife Foundation in the amount of $10,000 and pay an additional fine of $10,000.  Huff has also agreed to a five-year prohibition from hunting and the destruction of the rifle and ammunition seized during the investigation by the United States Fish and Wildlife Service. 

Huff is scheduled to be sentenced on October 11, 2022.

This case was investigated by the United States Fish and Wildlife Service with assistance provided by the Ohio Department of Natural Resources, Division of Wildlife.  This case is being prosecuted by Assistant U.S. Attorney Brad J. Beeson.

Charles Allen Nakoff Jr., 34, of Lorain, Ohio, was sentenced on Thursday, June 16, 2022, by U.S. District Judge Dan Aaron Polster to 30 years in prison, a life term of supervised release and ordered to pay $127,500 in restitution after Nakoff pleaded guilty to sexual exploitation of a child, transportation of child pornography, possession of child pornography and receipt and distribution of visual depictions of real minors engaged in sexually explicit conduct.

“There is no tolerance in law enforcement nor society for those who harm, exploit and prey upon children,” said First Assistant U.S. Attorney Michelle M. Baeppler.  “This office has placed a high priority on combating sexual exploitation of minors, and we will seek to hold these offenders accountable.”  

“Nakoff preyed on the innocent, and our communities are safer with him behind bars,” said HSI Detroit acting Special Agent in Charge James C. Harris III. “It is my hope that today’s sentencing brings some measure of closure to his victims. HSI is just as committed to providing care and support to the victims of these crimes as we are to catching those responsible.”

According to court documents, in April of 2020, law enforcement agents with Homeland Security Investigations (HSI) began an investigation into Nakoff after receiving a tip that an online account associated with an individual later identified as Nakoff contained approximately 1,500 files depicting child exploitation material, including some victims as young as toddlers.

In July 2020, investigators executed a search warrant at Nakoff’s residence in Lorain and seized three phones and three computers.  Authorities then searched Nakoff’s phones and found additional visual depictions of child pornography as well as numerous conversations via a mobile messaging and file sharing application with other users discussing and trading of child pornographic images.

During an analysis of the seized devices, investigators discovered several videos and images depicting Nakoff abusing multiple minor victims.  Investigators determined that these videos and images were self-produced by Nakoff and Rosalina C. Dragga, 33, of Lorain.

Dragga was sentenced to 121 months in prison for her role in the matter.

This case was investigated by Homeland Security Investigations (HSI) and is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik.

The U.S. Attorney’s Office for the Northern District of Ohio joins with the Department of Justice and other U.S. Attorney’s Offices across the country in recognizing June 15 as Annual World Elder Abuse Awareness Day (WEAAD).  WEAAD provides an opportunity for communities around the world to promote a better understanding of abuse and neglect of older persons by raising awareness of the cultural, social, economic and demographic processes affecting elder abuse and neglect. 

“Many of us are familiar with instances involving the exploitation of loved ones or our older relatives,” said First Assistant U.S. Attorney Michelle M. Baeppler.  “The Department of Justice and law enforcement in this region are committed to protecting and supporting the most vulnerable among us, including by advancing elder justice initiatives and providing support through grants, training and other resources.”

The Department of Justice Elder Justice Initiative coordinates efforts to prevent and respond to elder abuse, including by developing training and resources for partners at all levels of government and beyond.   Grantmaking components have funded the development of coordinated, multi-disciplinary approaches to advancing elder justice, including Multi-disciplinary Teams.

Elder Justice Coordinators in each of the 94 U.S. Attorneys’ offices nationwide work to successfully prosecute cases of elder abuse, including by supporting the Transnational Elder Fraud Strike Force.  The Strike Force, which was launched and is led by the Department’s Consumer Protection Branch, brings together attorneys, agents, and analysts from across the federal government to disrupt and prosecute foreign-based fraud schemes that target American seniors.

In addition, the Department of Justice continues to expand the capacity to protect and support survivors of elder abuse.  This includes a training and technical assistance program to develop and expand statewide Elder Justice Coalitions and an Abuse in Later Life Program, which supports organizations dedicated to assisting older individuals and advancing comprehensive, multi-disciplinary solutions to elder abuse.

If you need assistance or to report elder abuse, please contact your local adult protective services agency through the Eldercare Locator or by call the helpline at 1-800-677-1116. 

Monday – Friday 9:00 am - 8:0 pm EST.

To report elder fraud, please visit the FBI’s IC3 Elder Fraud Complaint Center or contact the dedicated National Elder Fraud Hotline at 1-833–FRAUD–11 or 1-833–372–8311.

Monday – Friday, 10:00 am – 6:00 pm EST.

For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice. 

First Assistant U.S. Attorney Michelle M. Baeppler announced that a grand jury returned a four-count indictment charging four men with trafficking fentanyl pills from the Southwestern United States to be distributed in Cleveland.

Named in the indictment are Derrean Wall, 29, and Cortez West, 31, of Cleveland, Ohio, and Dayareon Crofton, 22, and Floyd Head, 39, of Phoenix, Arizona.  Each defendant is charged with conspiracy to possess with intent to distribute a controlled substance.  In addition, Defendant Wall is charged with three additional counts of possession with intent to distribute a controlled substance.

According to court documents, in January 2022, postal inspectors in Arizona seized a package suspected of containing narcotics addressed to a location in Cleveland, Ohio.  Investigators later learned that the package contained approximately 2.2 kilograms of fentanyl pills.  After investigating the origins of the package, it is alleged that authorities identified Defendants Dayareon Crofton, Floyd Head and Cortez West as participants in a drug trafficking conspiracy that shipped and couriered large quantities of fentanyl pills to Defendant Derrean Wall in Cleveland.  Over the course of the next three months, Crofton, Head, and West were arrested, each carrying approximately 2kg of fentanyl pills.  All three were arrested while en route to Cleveland, Ohio.

On April 27, 2022, authorities executed a search warrant at locations in Warrensville Heights and Cleveland known to be associated with Wall.  During the execution of the warrant, court documents state that authorities encountered Wall at the addresses and obtained two loaded pistols, a loaded rifle, heroin, methamphetamine and large quantities of fentanyl.

If convicted, a defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offenses, and the characteristics of the violations.

In all cases, sentences will not exceed the statutory maximum and, in most cases, will be less than the maximum. All four defendants face a mandatory minimum sentence of 10 years imprisonment.

The Drug Enforcement Administration (DEA), United States Postal Inspection Service (USPIS), Cleveland Heights Police Department, Cleveland Metroparks Police Department and the Summit County Drug Unit investigated this case.

Assistant United States Attorney Payum Doroodian is prosecuting this case.

The former Vice President of Discovery Tours Inc., a business located in Mayfield Village, Ohio, that offered educational trips for grade school and high school students, pleaded guilty in federal court today to devising a scheme to take payments for trips and then using the funds for personal expenses.

Joseph A. Cipolletti, 47, of Hudson, Ohio, pleaded guilty to an 18-count indictment that charged him with wire fraud, money laundering, bank fraud and false statement under oath in a bankruptcy proceeding.

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.  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.

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 more than $600,000 from his place of business and made false entries in the general ledger.

The total amount of loss will be determined by the Court at sentencing.

Cipolletti is scheduled to be sentenced on November 29, 2022.

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

The U.S. Attorney’s Office for the Northern District of Ohio would like to acknowledge and thank the Ohio Bureau of Criminal Investigations and the Summit County, Geauga County, and Cuyahoga County Prosecutor Offices for their cooperation with this matter.

A Youngstown man was sentenced to 18 months in prison today by U.S. District Judge Benita Y. Pearson after he pleaded guilty to selling over 100 firearms without a license.

According to court documents, Josh Hones, 36, illegally possessed and sold over 100 firearms in the Youngstown area between July 2019 and August 2020.  According to court documents, Hones admitted to selling firearms to and from pawnshops, gun shops, online and through Facebook messenger.  Court records state that some of the firearms sold by Hones were then used to threaten people, shoot a car, facilitate drug trafficking and were later obtained by convicted felons.

The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated this matter.

This case was prosecuted by Assistant U.S. Attorney Yasmine Makridis.

A South Euclid man was sentenced to 11 years in prison on Thursday, June 9, 2022, by U.S. District Judge Donald C. Nugent after he previously pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and possession of methamphetamine with intent to distribute.

According to court documents, on June 12, 2020, law enforcement officers from the United States Postal Inspection Service arrested Mark Holt Williams, 29, of South Euclid, Ohio, during a controlled delivery of a package containing a large quantity of methamphetamine.  The parcel had been mailed from California to an apartment in University Heights, Ohio, but was intercepted in transit by Postal Inspectors.  Williams was arrested and charged after accepting delivery of the methamphetamine parcel from an undercover Postal Inspector.

Also charged in the conspiracy is Donathan Woodson, age 30, of Warrensville Heights, Ohio.  During the investigation into Williams, authorities learned that Woodson had traveled to California with Holt Williams to assist in mailing drug parcels back to Ohio.  Woodson previously pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on August 18, 2022.

The United States Postal Inspection Service (USPIS) investigated this case with assistance from Homeland Security Investigations (HSI) and the Cuyahoga County Sheriff’s Office (CCSO).  This case was prosecuted by Assistant U.S. Attorneys James P. Lewis and Elizabeth M. Crook. 

An Elyria man was sentenced to 10 years in prison by U.S. District Judge Benita Y. Pearson in Youngstown on Tuesday, June 7, 2022, after he previously pleaded guilty to possession with intent to distribute fentanyl, heroin, crack cocaine and being a felon in possession of a firearm. 

According to court documents, Demarcus P.A. Boone, 26, was arrested and charged by law enforcement authorities with the Elyria Police Department (EPD) following an investigation into Boone’s drug trafficking activities in the Elyria area.  In April 2021, authorities with the EPD began an investigation into Boone after receiving information from a confidential source that Boone was trafficking heroin and fentanyl.

On May 7, 2021, authorities executed a search warrant at a known residence of Boone and obtained quantities of fentanyl and cocaine hidden inside the insulation of a basement wall.  Authorities later located Boone at another residence, and he was arrested.  Law enforcement officers again searched Boone and the other residence where he was staying and obtained quantities of fentanyl and cocaine.  Additionally, inside the residence, officers discovered a firearm belonging to Boone. 

Boone is prohibited from possessing a firearm due to previous convictions of illegal conveyance of drugs and possession of heroin.

The Elyria Police Department and the FBI investigated this case, and it was prosecuted by Assistant U.S. Attorney Robert J. Kolansky. 

This case is part of Operation Synthetic Opioid Surge (S.O.S.)., an initiative that seeks to reduce the supply of deadly synthetic opioids and to identify wholesale distribution networks and international and domestic suppliers in Lorain County.

Wydell S. Dixon, 29, of Cleveland, Ohio, was convicted by a federal jury on Wednesday, June 8, 2022, of being a felon in possession of a firearm during an arrest on July 22, 2020, on Fullerton Avenue in Cleveland.

According to court documents, while on patrol for drug trafficking activity, members of the Cleveland Police Department’s Gang Impact Unit observed an individual standing near a car holding a bag of marijuana.  As authorities went to investigate what they had just witnessed, the individual fled the scene on foot.

While in pursuit of the man, they observed another individual, later identified as Dixon, discard an object and raise his hands in the air.  Officers then searched the area and found a semi-automatic pistol with an extended magazine that Dixon had discarded.

Dixon is prohibited from possessing a firearm due to previous convictions of aggravated robbery with a firearm, felonious assault, having weapons under disability, carrying concealed weapons and drug trafficking offenses, all in the Cuyahoga County Common Pleas Court.

A sentencing date has not yet been set.  Dixon faces a maximum possible sentence of 10 years in prison.

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Cleveland Division of Police, Gang Impact Unit investigated this case.  This case is being prosecuted by Assistant U.S. Attorneys Bryson N. Gillard and Yasmine T. Makridis.

First Assistant U.S. Attorney Michelle M. Baeppler announced that Jay A. Schwartz, 55, of Northville, Michigan, was sentenced today to 27 months in prison and ordered to pay a $250,000 fine by U.S. District Court Judge Robert H. Cleland in Port Huron, Michigan.  Judge Cleland pronounced the sentence after Schwartz was convicted at trial of conspiracy and bribery involving federal programs.

According to court records, from March 2014 to January 2016, Schwartz, an Oakland County, Michigan, attorney, was part of a conspiracy that provided Dean Reynolds, an elected Trustee of Clinton Township, Michigan, cash and free legal services in return for Reynolds’ assistance steering a waste collection contract with Clinton Township valued at approximately $36 million to Rizzo Environmental Service, Inc. (“RES”).

As part of the conspiracy, Schwartz, provided Reynolds with approximately $40,000 worth of free legal services in order to influence Reynolds’ decision to extend a waste collection contract with RES for 10 years.  Schwartz also assisted his co-conspirators in paying and concealing a $3,000 cash bribe to Reynolds so he could pay for a psychological exam in his divorce proceedings.

Dean Reynolds was sentenced in 2019 to 17 years in prison for his role in the scheme.

This case was investigated by the Detroit FBI.  This case was prosecuted by Assistant U.S. Attorneys Gene Crawford, Michael Freeman and Suzana Koch of the Northern District of Ohio.