Northern District of Ohio

First Assistant U.S. Attorney Michelle M. Baeppler announced that Derrick Lamont Jones, 57, of Toledo, was sentenced on May 31, 2022, to 54 months in prison and ordered to pay $21,702 in restitution by U.S. District Judge Jack Zouhary after Jones pleaded guilty to stealing motorcoach buses from various businesses and defrauding a church tour group.

According to court documents, from 2003 through 2019, Jones conspired together with codefendant Kelly Marie Thomas to steal, conceal and transport motorcoach buses.  Court records state that between April 2003 and April 2009, Jones stole several buses from businesses in Ohio and elsewhere, including Ground Transportation Specialists in Taylor, Michigan; Lakefront Lines in Toledo, Ohio; Seniors Unlimited in Pontiac, Michigan and American Heritage Trails in Fort Wayne, Indiana.

According to court records, Jones had prior experience working as a bus driver and was familiar with the operations of the vehicles.  After stealing a bus, Jones would take steps to conceal the fact that the bus was stolen, including altering vehicle identification numbers, changing exterior paint and removing company logos and markings.

As part of the conspiracy, Jones and Thomas would offer charter bus transportation services to passengers in Ohio and elsewhere through advertisements on the internet, on social media and in local newspapers.  Jones and Thomas offered these services under the names of Destiny Tours, Kelly Tours, Marie’s Tours and Travel, Elite Tours and GT Tours.  Jones and Thomas purportedly offered these services as compliant with the FMCSA (Federal Motor Carrier Safety Administration) and the Department of Transportation (DOT) regulations when, in fact, they knew that these companies were never incorporated and never received operating authority from the DOT or FMCSA.

In one instance, in December 2017, Jones entered into a contract with a church group from Toledo for $3,200 to provide charter bus services from Toledo to New York City.  Court documents state that Jones received approximately $2,200 in cash prior to the scheduled departure date of the trip but failed to take the group on the trip and never returned the payment he had received.

Jones pleaded guilty to conspiracy, interstate transportation of stolen vehicles, violation of FMCSA regulations, and conspiracy to commit wire fraud.  In addition to the prison sentence, Judge Zouhary ordered Jones to pay restitution to the church group that he defrauded and restitution to the various business that owned the buses he stole for damages and bus retrieval costs.

Kelly Marie Thomas was previously sentenced to three years of probation for her role in the conspiracy.

This case was investigated by the U.S. Department of Transportation - Office of Inspector General, with assistance by the U.S. Department of Transportation – Federal Motor Carrier Safety Administration, Ohio Division, Ohio State Highway Patrol, Toledo Police Department and the Michigan State Police.  This case was prosecuted by Assistant United States Attorney Jody L. King.

 

First Assistant U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a 22-count superseding indictment charging eight individuals for their roles in a drug trafficking conspiracy that distributed approximately 611 kilograms, or more than 1,300 pounds, of cocaine throughout Northeast Ohio. 

Named in the superseding indictment are Marc Mahoney, 43, of North Royalton, Hosea Lock, 53, of Cleveland, Jesse Bojorquez, 38, of Chula Vista, California, Jerome McGinns, 47, of Cleveland, Ohio, Marquis Glenn, 36, of South Euclid, Ohio, Desmond Smith, 31, of Westlake, Ohio, Deshon Knowles, 38, of Ashtabula, Ohio, and Sammy Abraham, 60, of Cleveland, Ohio.

Law enforcement authorities with the United States Marshals Service arrested defendants McGinnis, Glenn, Knowles, and Abraham in connection with the unsealing of the superseding indictment.  Defendants Mahoney, Lock and Bojorquez were previously arrested in January of 2022 pursuant to charges alleged in a criminal complaint.  Smith was arrested on May 18, 2022, pursuant to charges alleged in a separate criminal complaint.

Each defendant is charged with conspiracy to distribute and possess with intent to distribute controlled substances and use of a communications facility to facilitate a drug trafficking offense.  In addition, defendant Mahoney is charged with additional counts of conspiracy to launder monetary instruments and possession with intent to distribute cocaine. 

Defendant Bojorquez is charged with an additional count of interstate travel in aid of racketeering.  Defendant Smith is charged with additional counts of possession with intent to distribute controlled substances, possession with intent to distribute cocaine, possession with intent to distribute cocaine base, possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm.

According to court documents, from January 2019 to May 2022, defendant Mahoney allegedly obtained large quantities of cocaine from Mexico, which he then redistributed to the named defendants to be further distributed throughout Northeast Ohio. 

It is alleged that Mahoney distributed approximately 611 kilograms of cocaine to defendants Lock, McGinnis, Glenn and Smith to be redistributed in Northeast Ohio.  Smith further distributed cocaine and cocaine base to defendants Knowles and Abraham to be redistributed.  In return, the defendants allegedly provided Mahoney with a combined approximate total of nearly $20 million in proceeds, which Mahoney then sent back to Mexico.  On January 20, 2022, the indictment states that Mahoney delivered $2,399,585.00 of cocaine sales proceeds to Bojorquez, in Cleveland, Ohio, for transportation back to Mexico.

The conspirators are also accused of using cell phones and coded language to obscure and disguise their drug trafficking activity.

On January 20, 2022, investigators executed a search warrant at Mahoney’s residence and at a storage unit associated with Bojorquez.  During the execution of the warrants, investigators obtained more than $2.4 million in U.S. currency, a drug ledger and approximately 22 kilograms of cocaine.  Mahoney allegedly used the ledger to record his drug transactions.

The indictment also alleges that to conceal the proceeds of his cocaine sales, Mahoney conspired with Rueben Schwartz, 49, of Conneaut, Ohio, to purchase properties in Conneaut with cash derived from Mahoney’s drug trafficking activities.  Mahoney allegedly paid Schwartz cash for the properties and the two worked together to conceal the true amount paid. 

 

Schwartz was charged

 in a separate indictment with money laundering on May 25, 2022, for his role in the scheme. 

This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.  OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

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 maximums, and in most cases, will be less than the maximums.

The investigation was conducted by the Drug Enforcement Administration, with assistance from the Westshore Enforcement Bureau, the Westlake Police Department, the Conneaut Police Department, the Federal Bureau of Investigation, the Rocky River Police Department, the North Olmstead Police Department and the United States Marshals Service.  This case is being prosecuted by Assistant United States Attorney Robert J. Kolansky.

First Assistant U.S. Attorney Michelle M. Baeppler announced that Chance R. Young, 26, of Canton, Ohio, was sentenced on Wednesday, May 25, 2022, to ten years in prison by U.S. District Judge Patricia A. Gaughan after Young pleaded guilty to possession with intent to distribute fentanyl and marijuana and possession of a firearm in furtherance of a drug trafficking crime.

According to court documents, on December 4, 2020, Young was arrested by law enforcement officers with the FBI and FBI Safe Streets Task Force on multiple outstanding warrants for kidnapping, aggravated robbery and felonious assault issued by the Canton Municipal Court.  Following the arrest, authorities executed a search warrant at the known residence of  Young.  During the search, authorities obtained a handgun with a loaded magazine and an attached weapon light, a rifle with a loaded magazine, several bags of marijuana and quantities of fentanyl.

This case was investigated by the FBI, Canton Police Department and FBI Safe Streets Task Force.  This case was prosecuted by Assistant U.S. Attorney Damoun Delaviz.

First Assistant U.S. Attorney Michelle M. Baeppler announced that Leandre D. McFarland, 33, of Cleveland, was sentenced on Monday, May 23, 2022, to 15 years in prison by U.S. District Judge Sara Lioi after McFarland pleaded guilty to being a felon in possession of a firearm.

According to court documents, on January 8, 2020, authorities with the Ohio Adult Parole Authority conducted a home visit of Defendant McFarland who, at the time, was on parole after serving a 12-year prison sentence.  Upon arrival, authorities encountered McFarland and searched a room he was known to occupy after discovering marijuana in the room.  During the search, officers obtained a loaded firearm in a pocket connected to McFarland’s bed.    McFarland later admitted to owning the weapon and stated that he needed it for protection.  The firearm was reported stolen from a vehicle in Steubenville, Ohio.

McFarland is prohibited from possessing a firearm due to multiple previous convictions of aggravated robbery, felonious assault and kidnapping in the Cuyahoga County Common Pleas Court.  McFarland qualified as an Armed Career Criminal during sentencing due to prior felony convictions for violent offenses committed on separate occasions. 

This case was investigated by the FBI, Cleveland Police and the Ohio Adult Parole Authority.  This case was prosecuted by Assistant U.S. Attorney Scott C. Zarzycki.

First Assistant U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a three-count indictment charging Jason Delaney, 39, of Elyria, Ohio, with possession with intent to distribute fentanyl, possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm.

According to court documents, on March 24, 2022, law enforcement authorities arrested the defendant and executed a search warrant at his residence and for his vehicle.  These search warrants came after an investigation into the defendant and his alleged drug trafficking activities.  During the search, it is alleged that authorities obtained packages later confirmed to contain over 120 grams of fentanyl, a 9mm firearm, large amounts of U.S. currency and other drug trafficking paraphernalia. 

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

This case is part of Operation Synthetic Opioid Surge (S.O.S.)., a joint law enforcement 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.

This investigation was conducted by the Elyria Police Department and the FBI, with the assistance of the Lorain Police Department and the Ohio Adult Parole Authority.  This case is being prosecuted by Assistant U.S. Attorney Robert J. Kolansky.

First Assistant U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a six-count indictment charging Amanda Hovanec, Anthony Theodorou and Anita Green with participating in a conspiracy that led to the death of an individual known to the Grand Jury as T.H. on or about April 24, 2022, in Auglaize County, Ohio.

Defendants Hovanec and Theodorou are charged with conspiracy to import a controlled substance, importation of a controlled substance, conspiracy to possess with intent to distribute a controlled substance and distribution of a controlled substance.  Each of the five counts in the indictment against Defendants Hovanec and Theodorou carries a sentencing penalty enhancement due to the death of an individual as a result of the use of the controlled substance.  Defendant Green is charged with one count of accessory after the fact.

According to the indictment, in or around February 2022 and continuing through March 2022, Defendants Hovanec and Theodorou conspired together to import Etorphine (M99), a Schedule I or II controlled substance, into the United States.  The indictment states that on April 24, 2022, as a result of the importation and distribution of the M99 controlled substance, Hovanec and Theodorou allegedly caused the death of T.H.

The indictment further alleges that on or about April 24, 2022, continuing through April 28, 2022, Defendant Green, knowing that Defendants Hovanec and Theodorou had allegedly caused the death of T.H. by means of distribution of a controlled substance, assisted the two in order to hinder and prevent their apprehension, trial and punishment.

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 Toledo FBI, Auglaize County Sheriff’s Office, Northwest Ohio Safe Streets Task Force, Ohio BCI, Wapakoneta Police Department, St. Mary’s Police Department and the Grand Lake Task Force.  This case is being prosecuted by Assistant U.S. Attorneys Michael J. Freeman and Alissa M. Sterling.

Acting U.S. Attorney Michelle M. Baeppler announced that Terry Warejko, 63, of Toledo, Ohio, was sentenced on Monday, May 23, 2022, by U.S. District Judge James G. Carr to fifteen years in prison and ordered to pay $119,000 in restitution after Warejko pleaded guilty to an Information charging him with possession of child pornography.

According to court documents, in December 2014, law enforcement authorities executed a search warrant at Warejko’s Toledo-area residence after obtaining information of suspected file-sharing of child pornography at the address.  During the search, authorities obtained several electronic devices, which were later confirmed to contain child pornography that depicted prepubescent minors.

Warejko spoke with authorities and admitted to viewing child pornography for the past 20 years and using file-sharing programs to download and share files.  Warejko also admitted to visiting paid sites to view and record live-streaming naked women, some of whom displayed their nude minor children and engaged in sex acts. 

This case was investigated by the Toledo FBI and was prosecuted by Assistant U.S. Attorney Tracey B. Tangeman.

First Assistant U.S. Attorney Michelle M. Baeppler announced that Larrien Brown-Austin, 37, of Canton, Ohio, was sentenced on Tuesday, May 24, 2022, by U.S. District Judge Pamela A. Barker to 15 years in prison, a lifetime of supervised release and ordered to pay a $5,000 special assessment fine and $1,885 in restitution to victims.  Judge Barker pronounced the sentence after Brown-Austin pleaded guilty to participating in a sex trafficking conspiracy that forced victims to perform sex acts in exchange for money.

“This defendant targeted vulnerable victims and exploited their drug dependency all in an attempt to make money and feed his own heinous and selfish wants,” said First Assistant U.S. Attorney Michelle M. Baeppler.  “Human trafficking is an insidious crime, and law enforcement will use every means available to ensure that these traffickers face justice.”

“Identifying, investigating, and apprehending sex trafficking offenders is a critical part of our mission,” said Cleveland FBI Acting Special Agent in Charge Philip Frigm, Jr.  “The sentence handed down today reflects the tireless effort of the FBI and our law enforcement partners to examine criminal enterprises operating within our communities and bring to justice those who endanger public health and safety.  The FBI commends the work of our investigating and prosecuting partners to protect our neighborhoods for law-abiding citizens and remove these offenders from our communities who prey on vulnerable people.”

According to court documents, from June through August of 2018, Brown-Austin lived at a residence in Canton provided by his father that he used to facilitate commercial sex acts.  In June of 2018, Brown-Austin met Victim #1 and Victim #2 and forced both victims to live at the residence, perform sex acts in exchange for money and provide him with the profits.

Court records state that Brown-Austin supplied his victims with drugs in an attempt to foster an addiction and withdrawal dependency cycle that forced them to rely upon him for more drugs.  Documents show that Brown-Austin used force, threats, acts of violence and leveraged the drug dependency of his victims to coerce them into performing additional commercial sex acts. Brown-Austin also kept a mobile tracking application on the cell phones of his victims in order to determine their whereabouts at all times.

Also charged in this matter as co-defendants are Shannon Marzano and Larry Brown-Austin both of Canton.  Marazano and Larry Brown-Austin have both previously pleaded guilty and have been sentenced for their roles in the scheme.

This case was investigated by the Canton FBI, Canton Police Department and the Ohio Department of Rehabilitation and Correction.  This case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik.

Acting 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 $333,549.82 in restitution from a defendant convicted of participating in a $40 million mortgage fraud scheme.

According to court records, a notice of judgment satisfaction was approved for Defendant John J. Dubay on Monday, May 23, 2022.  In 2014, Dubay was convicted by a jury of bank fraud and  conspiracy to commit bank fraud.  Dubay and others were part of a mortgage fraud conspiracy involving dozens of properties along Florida’s Gulf Coast.  As part of the scheme, Dubay and others acted as straw buyers who made false statements, misrepresentations and other omissions in the mortgage loan application process.

As a result of the scheme, Dubay and others obtained numerous home mortgage loans under false and fraudulent pretenses with a total face value of approximately $40 million, many of which ended up in default and foreclosure.

Dubay was sentenced to prison in September 2015 and ordered to pay $333,549.82 in restitution for his role in the conspiracy.

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. Attorneys Robert J. Patton and Om Kakani.

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.

 

Acting U.S. Attorney Michelle M. Baeppler announced that Gus Tell Jr., 56, of Akron, Ohio, was sentenced on May 19, 2022, by U.S. District Judge Sara Lioi to 15 years in prison after Tell pleaded guilty to possession with intent to distribute over 8 kilograms – or more than 17 pounds – of methamphetamine.

According to court documents, on August 28, 2021, officers with the Ohio State Highway Patrol stopped a vehicle belonging to Defendant Tell on Interstate Route 77 in Akron.  After a canine unit was alerted to the presence of narcotics in the vehicle, officers conducted a search of the vehicle and found a duffel bag containing 20 packages of suspected methamphetamine. A lab analysis determined that the packages contained more than 8 kilograms of methamphetamine. 

Tell admitted to knowingly and intentionally possessing and intending to distribute the methamphetamine.  Tell has several prior felony convictions for drug trafficking and felonious assault in the Summit County Court of Common Pleas. 

The investigation was conducted by the Ohio State Highway Patrol and Homeland Security Investigations (HSI).  This case was prosecuted by Assistant U.S. Attorney Aaron P. Howell.

Acting U.S. Attorney Michelle M. Baeppler announced that Travis Darnell Brown 40, of Toledo, Ohio, was sentenced on Tuesday, May 17, 2022, by U.S. District Judge Jeffrey J. Helmick to 12 years in prison after Brown pleaded guilty to possession with intent to distribute more than 400 pills of methamphetamine, carrying a firearm in relation to a drug trafficking crime and to being a felon in possession of a firearm.

According to court documents, on January 3, 2020, officers with the Toledo Police Department initiated a traffic stop of a vehicle near the intersection of Airport Highway and Apple Street in Toledo.  Officers identified the driver of the vehicle as Defendant Travis Darnell Brown.  While the stop was ongoing, Brown fled the scene and led officers on a vehicle pursuit that eventually ended with his arrest.  Officers then searched the vehicle and discovered a firearm on the driver-side floorboard.  In addition to the firearm, officers found approximately 400 pills containing a mixture of methamphetamine and caffeine from Brown.

Later, on May 6, 2020, Toledo Police officers stopped a vehicle and identified Brown as the driver.  During the search of this vehicle, officers again located a firearm in the back seat.

Brown is prohibited from possessing a firearm due to previous convictions of possession of crack cocaine, aggravated assault, domestic violence and having weapons under disability, all in the Lucas County Court of Common Pleas, and being a felon in possession of a firearm in the United States District Court for the Northern District of Ohio. 

This investigation was conducted by the Toledo FBI and the Toledo Police Department.  This case was prosecuted by Assistant United States Attorney Robert N. Melching.

Acting U.S. Attorney Michelle M. Baeppler announced that Rebecca Gilliam, 34, of Grayson, Kentucky, was sentenced on Thursday, May 19, 2022, by U.S. District Judge Jeffrey J. Helmick to five and a half years in prison after Gilliam pleaded guilty to her role in a conspiracy to possess with intent to distribute methamphetamine and acetyl fentanyl in the Toledo area.

According to court documents, in February 2021, Gilliam and co-defendants Roger Burnett, Ian Collier and Sonya Mayo were arrested following an investigation into narcotics trafficking in Toledo.  Authorities arrested the group following a traffic stop in which the defendants admitted to possession of narcotics, including over 180 grams of methamphetamine and over 140 grams of acetyl fentanyl.

Defendant Sonya Mayo pleaded guilty to conspiracy to possess with intent to distribute controlled substances on March 8, 2022.  Mayo is scheduled to be sentenced on July 18, 2022.

The matters against Defendants Roger Burnett and Ian Collier remain ongoing.  Defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

This investigation was conducted by Homeland Security Investigations (HSI) and the Northwest Ohio Interdiction Task Force.  This case was prosecuted by Assistant United States Attorney Robert N. Melching.

Acting U.S. Attorney Michelle M. Baeppler announced that Charles E. Smith, Jr., 52, of Woodmere, Ohio, pleaded guilty on May 19, 2022, to an Information charging him with one count of access device fraud and one count of aggravated identity theft.   

According to court documents, from May 2019 through May 2020, Smith purchased stolen credit and debit card account information, including account numbers and addresses, off of 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 used to deliver packages for Amazon.

In total, court documents state that 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 is scheduled to be sentenced on August 25, 2022.  Smith faces a mandatory minimum sentence of two years in prison and a maximum of twelve.

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

Acting U.S. Attorney Michelle M. Baeppler announced that John George Medas, 69, of North Royalton, Ohio, was sentenced today by U.S. District Judge Sara Lioi to 24 months in prison and ordered to pay $562,505,13 in restitution.  Medas previously pleaded guilty to failure to pay over taxes from employees and embezzling from his employees’ healthcare plan.

According to court documents, Medas owned and operated various manufacturing businesses and served as President of Guarantee Product Specialties, Inc., Fulton Manufacturing Industries, LLC, and FMI Products, LLC.  Court documents state that while operating these businesses, Medas withheld payroll tax from employees but failed to pay these taxes to the IRS.  Court records show that from April 2014 to January 2019, Medas failed to pay over $760,725

In addition, court documents state that between July and September 2016, Medas withheld $3,807 in employee pre-tax health contributions and embezzled the funds.

This case was investigated by the Internal Revenue Service – Criminal Investigations and the U.S. Department of Labor.  The case was prosecuted by Assistant U.S. Attorney Brian M. McDonough.

Acting U.S. Attorney Michelle M. Baeppler announced today that the U.S. Attorney’s Office for the Northern District of Ohio reached a settlement agreement with various hospitals located in the Mercy Health Northern Markets to resolve violations stemming from an investigation under the Americans with Disabilities Act (ADA).

The agreement follows a federal civil rights investigation into complaints of discriminatory treatment of deaf patients and their companions during healthcare stays at several hospitals.  These complaints stated that Mercy Health failed to provide on-site interpreters and, instead, relied on note writing and/or video remote interpreting services that failed to provide effective communication.  On the basis of its investigation, the United States determined that Mercy Health denied patients the appropriate auxiliary aids and services necessary for effective communication during healthcare.

Under the terms of the settlement agreement, Mercy Health agreed to take proactive steps to ensure future patients, and companions of patients, who are deaf or hard of hearing avoid similar discrimination.  The hospital system shall, among other actions, provide appropriate auxiliary aids and services, when necessary, after conducting a communication  assessment by consulting with the patient and/or companion.  The agreement also states that patients and their companions shall be advised of the availability of these aids and services throughout their healthcare stay and that these services will be provided free of charge.

According to the terms of the agreement, Mercy Health shall also make payments to each aggrieved person identified during the investigation and pay a civil penalty to the United States.  

This agreement is neither an admission of liability by Mercy Health nor a concession by the United States that its claims are not well-founded.  The Mercy Health hospital system cooperated fully throughout the investigation, which was conducted by Assistant U.S. Attorney Angelita Cruz Bridges under title III of the Americans with Disabilities Act of 1990.

Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.

Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/ or by calling the U.S. Attorney’s Office civil rights hotline at (216) 622-3932.

Acting U.S. Attorney Michelle M. Baeppler announced that Michael Sloan, 27, of Cleveland, was sentenced today by U.S. District Judge J. Philip Calabrese to 43 months, or more than three and a half years, in prison after Sloan pleaded guilty to conspiracy to commit arson during the May 30, 2020, demonstrations and civil unrest in downtown Cleveland.

“Hijacking a constitutionally-protected assembly in order to pursue a personal agenda that included arson and destruction of property is a corruption of our rights and freedoms,” said Acting U.S. Attorney Michelle M. Baeppler.  “Those who cause violence, chaos and destruction of property will be held accountable.”

“As Americans, we all have the right to participate in peaceful protests,” stated Travis S. Riddle, Acting Special Agent in Charge of ATF’s Columbus Field Division.  “That is not what happened here. The defendant set fire to a business to spread chaos and fear, and he is being held accountable for that violent act upon our community.”

According to court documents, on May 30, 2020, Sloan participated in a demonstration in downtown Cleveland to protest the death of George Floyd in Minneapolis, Minnesota.  Later that day, Sloan arrived outside of Rebol restaurant, which had already been damaged and looted.  Video recordings taken from that day showed Sloan entering and exiting Rebol restaurant multiple times over the course of twenty minutes and conversing with unknown persons outside of the restaurant.  According to court documents, Sloan’s actions in this twenty-minute period included surveying the scene inside Rebol, conspiring to set a fire and actually setting a fire on Rebol’s east service counter.

Video recordings showed Sloan starting and then feeding the fire with napkins, papers and other combustibles.  Video also showed Sloan continuing to feed the fire for several minutes until the fire began burning without the need for additional fuel and created a substantial risk of death or serious bodily injury.  Cleveland Police arrived several minutes later and extinguished the fire before it could do additional damage.  Sloan fled the area on foot.

Investigators later identified Sloan as the subject who caused the fire thanks, in part, to tips received from the public after images and video were released to the media.

This investigation was conducted by the ATF with the assistance of the Cleveland Police Department.  This case is being prosecuted by Assistant United States Attorneys Adam J. Joines and Suzana K. Koch.

In honor of National Police Week, the United States Attorney’s Office for the Northern District of Ohio will recognize the service and sacrifice of federal, state and local law enforcement.  This year, the week is observed Wednesday, May 11, through Tuesday, May 17, 2022.

“This week, we gather to pay tribute to the law enforcement officers who sacrificed their lives in service to our country,” said Attorney General Garland.  “We remember the courage with which they worked and lived. And we recommit ourselves to the mission to which they dedicated their lives.  On behalf of a grateful Justice Department and a grateful nation, I extend my sincerest thanks and gratitude to the entire law enforcement community.”

“Everyday law enforcement in Northern Ohio and across the country put their lives on the line to make our communities safe and secure for us and future generations,” said Acting U.S. Attorney Michelle M. Baeppler.  “This week, we offer our deepest gratitude and sincere thanks to all those in law enforcement, as well as to families and loved ones.”

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifice.  Peace Officers Memorial Day, which falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.  Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), 472 law enforcement officers died nationwide in the line of duty in 2021.  Of that number, 319 succumbed to COVID-19.  This year, three officers have died in the line of duty in the Northern District of Ohio.  

Additionally, according to 2021 statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 73 law enforcement officers who died in the line of duty in 2021 were killed as a result of felonious acts, whereas 56 died in accidents.  Deaths resulting from felonious acts increased in 2021, rising more than 58 percent from the previous year. 

In 2021, unprovoked attacks were the cause of 24 deaths, significantly outpacing all other line of duty deaths resulting from felony acts and reaching the highest annual total in over 30 years of reporting.  Additional LEOKA statistics can be found on FBI’s Crime Data Explorer website for the LEOKA program. 

The names of the 619 fallen officers added this year to the wall at the National Law Enforcement Officer Memorial will be read on Friday, May 13, 2022, during a Candlelight Vigil in Washington, D.C., starting at 8:00 PM EDT.  The vigil will be streamed live, online via the NLEOMF YouTube channel found at https://www.youtube.com/TheNLEOMF.  The schedule of National Police Week events is available on NLEOMF’s website.

Acting U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a six-count indictment charging Ankita Singh, 39, formerly of Maumee, Ohio, with fraudulently billing Medicare $8.4 million.

According to the indictment, the defendant was a state-licensed physician practicing in Maumee and Toledo.  From June 2018 through May 2021, it is alleged that the defendant participated in a scheme to bill Medicare approximately $8.4 million in durable medical equipment, prosthetics/orthotics and supplies (DMEPOS) that were medically unnecessary.

As part of the scheme, it is alleged that telemarketers and call centers would contact or cold-call Medicare beneficiaries in an attempt to convince the beneficiaries to agree to receive DMEPOS, specifically braces, in the mail.  The call center operators and telemarketers often told beneficiaries that the braces would be provided at no cost and that a doctor would be contacting them.

The indictment states that the call centers and telemarketers would then use general information about the beneficiary, including their name, Medicare number and purported diagnosis, to prepare DMEPOS order forms that certified that the equipment and supplies were medically necessary.

According to the indictment, the defendant received these order forms and signed them, even though the defendant had never spoken to, examined, assessed or otherwise established a doctor-patient relationship with the beneficiary.  As a result, DMEPOS suppliers shipped the items listed on the order forms to the beneficiaries and submitted a corresponding claim to Medicare.

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

If convicted, the defendant’s sentence will be determined by the court after 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, and in most cases, it will be less than the maximum.

This case was investigated by the Office of Inspector General, U.S. Department of Health and Human Services (HHS-OIG) and Cleveland FBI.  This case is being prosecuted by Assistant U.S. Attorney Jody L. King.  

Two Florida men were sentenced Friday for leading a nationwide scheme to defraud the Paycheck Protection Program (PPP) for millions of dollars in loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The U.S. District Court for the Northern District of Ohio sentenced Phillip J. Augustin, 53, of Coral Springs, to 78 months in prison, and James Stote, 56, of Hollywood, to 120 months in prison. Stote and Augustin each pleaded guilty to conspiracy to commit wire fraud on Dec. 14, 2021. 

According to court documents, Augustin and Stote obtained a fraudulent PPP loan for Augustin’s company, Clear Vision Music Group LLC, using falsified documents. After submitting that application, Stote and Augustin immediately began trying to illicitly obtain larger PPP loans for themselves and their associates. Stote and Augustin recruited additional PPP loan applicants and prepared and submitted fraudulent loan applications for them in exchange for a share of the loan proceeds. Augustin used his network of business contacts as a manager for professional football players to recruit loan applicants. The applications they submitted for these loans relied on fake payroll numbers, falsified IRS forms, and phony bank statements. Stote submitted or facilitated at least 79 fraudulent loan applications worth at least $35 million. Among those loans, Augustin was responsible for at least 34 fraudulent loan applications worth at least $15 million.

In addition to his prison sentence, Stote was ordered to serve three years of supervised released and pay more than $10.1 million in restitution and more than $1.1 million in forfeiture. Augustin was ordered to serve three years of supervised released and pay more than $5.9 million in restitution and more than $272,000 in forfeiture.

In total, 25 people have been charged for their participation in this scheme in the Northern District of Ohio, Southern District of Florida, and Middle District of North Carolina.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio; Special Agent in Charge Bryant Jackson of the IRS-Criminal Investigation (IRS-CI) Cincinnati Field Office; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Interim Special Agent in Charge Philip E Frigm Jr. of the FBI’s Cleveland Field Office; and Special Agent in Charge Sharon Johnson of the SBA’s Office of Inspector General (SBA-OIG) Central Region made the announcement.

The IRS-CI, FBI, and SBA-OIG are investigating the cases.

Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elliot Morrison for the Northern District of Ohio prosecuted this case.

Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Two Florida men were sentenced today for leading a nationwide scheme to defraud the Paycheck Protection Program (PPP) for millions of dollars in loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The U.S. District Court for the Northern District of Ohio sentenced James Stote, 56, of Hollywood, to ten years in prison, and Phillip J. Augustin, 53, of Coral Springs, to six and a half years in prison. Stote and Augustin each pleaded guilty to conspiracy to commit wire fraud on Dec. 14, 2021. 

According to court documents, Augustin and Stote obtained a fraudulent PPP loan for Augustin’s company, Clear Vision Music Group LLC, using falsified documents. After submitting that application, Stote and Augustin immediately began trying to illicitly obtain larger PPP loans for themselves and their associates. Stote and Augustin recruited additional PPP loan applicants and prepared and submitted fraudulent loan applications for them in exchange for a share of the loan proceeds. Augustin used his network of business contacts as a manager for professional football players to recruit loan applicants. The applications they submitted for these loans relied on fake payroll numbers, falsified IRS forms, and phony bank statements. Stote submitted or facilitated at least 79 fraudulent loan applications worth at least $35 million.  Among those loans, Augustin was also held responsible for at least 34 fraudulent loan applications worth at least $15 million.

The scheme included at least two loans to entities in Northeast Ohio that fraudulently obtained approximately $875,000.

In addition to their prison sentences, Stote was ordered to serve three years of supervised released and pay $10,149,752.69 in restitution and forfeit $1,137,715.13 in U.S. currency, four Rolex watches and other jewelry items valued at more than $31,000.

Augustin was ordered to serve three years of supervised released and pay $5,910,277.72 in restitution and forfeit $280,269.35 in U.S. currency.

In total, 25 people have been charged for their participation in this scheme in the Northern District of Ohio, Southern District of Florida, and Middle District of North Carolina.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio; Special Agent in Charge Bryant Jackson of the IRS-Criminal Investigation (IRS-CI) Cincinnati Field Office; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Interim Special Agent in Charge Philip E Frigm, Jr. of the FBI’s Cleveland Field Office; and Special Agent in Charge Sharon Johnson of the SBA’s Office of Inspector General (SBA-OIG) Central Region made the announcement.

The IRS-CI, FBI, and SBA-OIG are investigating the cases.

This case was prosecuted by Assistant U.S. Attorney Elliot Morrison for the Northern District of Ohio and Trial Attorney Philip Trout of the Criminal Division’s Fraud Section.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury returned a guilty verdict on Tuesday, May 3, 2022, against Defendant Terry A. Melton Jr., 31, of Mansfield, Ohio, following a two-day trial before Judge Solomon Oliver, Jr in Cleveland. 

Melton was convicted of possession of a firearm as a felon.

According to court documents, on August 14, 2020, law enforcement investigators approached a vehicle and occupant suspected of having been involved in drug trafficking activity in the Mansfield area.  Authorities detained the occupant as they believed the individual to have an active arrest warrant.  Inside the vehicle, investigators observed a 9mm semiautomatic pistol on the driver-side floorboard.  The firearm was loaded and bore an obliterated serial number.

Melton is prohibited from possessing a firearm due to previous convictions of distribution of cocaine and cocaine base, possession of a stolen firearm and possession of a firearm in furtherance of a drug trafficking offense, all in the United States District Court for the Northern District of Ohio.

Melton is scheduled to be sentenced on August 25, 2022, and faces a maximum possible sentence of life imprisonment.

This case was investigated by the Mansfield Police Department, Richland County METRICH Drug Unit and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  This case is being prosecuted by Assistant U.S. Attorney Peter E. Daly.

Acting U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a four-count indictment charging Milton Williams, 27, of Austintown, Ohio, with participating in a conspiracy that sold contraband to inmates at a Federal Correctional Institute in Elkton, Ohio (FCI-Elkton).

According to the indictment, from March 2020 to January 2021, the defendant worked as a Correctional Officer at FCI-Elkton.  The indictment states that during this time, Williams and others participated in a conspiracy that smuggled tobacco and cell phones into the prison and sold them to inmates.  The indictment alleges that inmates made payments through a mobile phone application.

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

If convicted, the defendant’s sentence will be determined by the court after 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, and in most cases, it will be less than the maximum.

This case was investigated by the FBI and the Department of Justice Office of the Inspector General.  This case is being prosecuted by Assistant U.S. Attorney Bryson N. Gillard.

Acting U.S. Attorney Michelle M. Baeppler announced that Aquileo Perez-Pineda, 52, a Mexican national previously residing in Georgia, was sentenced on Friday, April 29, 2022, by U.S. District Judge Sara Lioi to 188 months or more than 15 years in prison after Perez-Pineda pleaded guilty to his role in a conspiracy to manufacture, possess and distribute large quantities of methamphetamine in Northern Ohio.

According to court documents, from January 2018 through March 2018,  Perez-Pineda was part of a drug trafficking organization that conspired to manufacture, possess and distribute approximately 63 kilograms – more than 138 pounds – of methamphetamine in the Northern District of Ohio.

During this time, law enforcement officials had begun an investigation into a drug trafficking organization that established a system to transport liquid methamphetamine from Mexico to the Northern District of Ohio to be manufactured and cooked into crystal methamphetamine and  distributed, with the cash proceeds to be sent back to Mexico.  Court documents show that co-conspirators hid the liquid methamphetamine in the gas tanks of tractor-trailers.  

According to court records, Perez-Pineda, a trusted methamphetamine cook for the Mexican traffickers, came to Ohio from Georgia to coordinate the manufacturing of crystal methamphetamine, converting the liquid methamphetamine to crystal methamphetamine.   The manufacturing took place at warehouses in Aurora and Hudson, Ohio, where he was assisted by Hector Manuel Ramos-Nevarez and Gilbert Treviso-Garcia, two other Mexican nationals who had previously come to Ohio.

In the early morning hours of March 24, 2018, law enforcement officials with the DEA executed a search warrant at the warehouse in Hudson as part of their investigation into the drug trafficking organization, seizing a large quantity of crystal methamphetamine. 

Immediately after the search, the co-conspirators, unaware that law enforcement had taken the drugs, came to suspect Shauheen Sohrabi of stealing the drugs. 

Co-conspirators Deon Johnson and Tyrone Rogers discussed with suppliers in Mexico what to do about the theft, including possible retribution on Sohrabi.  Johnson had coordinated the connection between suppliers in Mexico and co-conspirators in Northeast Ohio, all while serving a sentence for a prior crime in state prison.

After the Mexican suppliers told Johnson that they could be killed in Mexico for losing such a large quantity of drugs, Johnson told Rogers, “The call is made; he’s through,” referring to Sohrabi.  Rogers then told another individual, “it’s over for” Sohrabi, explaining that “they already put the green light on him, it’s a wrap.  I can’t save him now.” 

Investigators then intervened, arresting members of the drug trafficking organization who were searching for Sohrabi.  Authorities then searched the Hudson warehouse, where they seized additional methamphetamine in its liquid form.

During the two searches, officials seized approximately 63 kilograms of methamphetamine. 

At the time investigators intervened in March 2018, Perez-Pineda had not been identified and had left the area.  However, less than two months later, according to public reports, Perez-Pineda was arrested in the middle of another large-scale methamphetamine-manufacturing process in Harnett County, North Carolina.  In that incident, Harnett County investigators seized 120 gallons of liquid methamphetamine, or more than 450 kilograms, reported to have a street value of approximately $90 million. 

Perez-Pineda is also serving a separate 70-month sentence as a result of that incident. Perez-Pineda’s 188-month sentence has been ordered to run consecutive to that sentence.

Additionally charged in this matter as co-conspirators are Johnson, Rogers, Sohrabi, Ramos-Nevarez, Treviso-Garcia, Michelle Dailey, and Joseph Terlizzi, who have all pled guilty and been sentenced for their roles in the drug trafficking organization.  Johnson was sentenced to 170 months in prison in March of this year.

Mexico-based supplier Jesus Cota-Medina has also been charged, and his matter remains pending.  Cota-Medina is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

This case was investigated by the DEA.  This case was prosecuted by Assistant U.S. Attorneys Elliot D. Morrison and Kevin P. Pierce.

Acting U.S. Attorney Michelle M. Baeppler announced that John David Lewis, 28, of Allen Park, Michigan, was sentenced on Friday, April 29, 2022, by U.S. District Judge Jeffrey J. Helmick to twenty-two and a half years in prison after Lewis pleaded guilty to production, possession, receipt and distribution of child pornography.

According to court documents, in June of 2020, undercover federal agents engaged in an online conversation with a user, later identified as Lewis, involved in a social media group that shared videos and images of child pornography.   Court records state that the undercover agent engaged in a conversation with Lewis and, during this time, determined that Lewis had produced and distributed child pornography involving a six-month-old infant.

Authorities were later able to locate and arrest Lewis at a Toledo-area residence after obtaining a search warrant.  According to court documents, Lewis admitted to investigators that he had viewed, produced, and distributed child pornography.  

Lewis was also prosecuted and convicted of rape in the Lucas County Court of Common Pleas and is currently serving a 15 years to life state sentence.

This case was investigated by Homeland Security Investigations Detroit Field Division.  This case was prosecuted by Assistant U.S. Attorneys Tracey Ballard Tangeman and Deyana F. Unis.

Acting U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a four-count indictment charging Sleiman Awada, 54, of Strongsville, Ohio, with stealing public funds and with participating in a conspiracy to defraud the Supplemental Nutrition Assistance Program (SNAP) program.

According to the indictment, the defendant worked with others at a convenience store on Warrensville Center Road in Warrensville Heights, Ohio.  This convenience store was registered with the U.S. Department of Agriculture Food and Nutrition Service (USDA-FNS) to participate in the SNAP program and receive benefit payments.  The indictment alleges that from May 2019 through September 2020, the defendant and others directed certain individuals to use their SNAP benefits to purchase items at other stores only to be resold in the Warrensville Heights convenience store at a profit.

In one example, it is alleged that the defendant met with an individual at the convenience store and provided that person with $150.000 in exchange for $389.37 worth of products that the defendant knew had been acquired outside of the convenience store and purchased with SNAP benefits.

The indictment also alleges that during this time, the defendant was fraudulently receiving benefits through Medicaid, Social Security, and SNAP.  Though the defendant worked at the convenience store, he failed to disclose that work when applying for benefits.  The defendant also created fictitious paystubs indicating that the defendant’s wife worked for and received payment from the convenience store.  It is alleged that the defendant knew this to be untrue and failed to disclose his own work at the store in order to receive government benefits to which he was not entitled, including SNAP, Medicaid, and Social Security disability benefits.

In total, the defendant is accused of receiving more than $215,000 in Medicaid benefits, $100,000 in SNAP benefits, and more than $200,000 in disability insurance benefits.

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

If convicted, the defendant’s sentence will be determined by the court after 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, and in most cases, it will be less than the maximum.

This case was investigated by the Federal Bureau of Investigation, the United States Department of Agriculture Office of Inspector General, the Social Security Administration Office of Inspector General, the Internal Revenue Service Criminal Investigation Division, and the Health and Human Services Office of Inspector General.  This case is being prosecuted by Assistant U.S. Attorney Segev Phillips.

Acting U.S. Attorney Michelle M. Baeppler announced that three individuals were sentenced for their roles in a scheme that sought to distribute approximately three gallons of phencyclidine (PCP) and methamphetamine obtained through the U.S. mail. 

Erwin D. Owens, age 39, of Compton, California, was sentenced to eight and a half years in prison, and Nathan Stewart, age 40, of North Olmsted, Ohio, was sentenced to six years in prison on April 25, 2022.   Dawuan L. Williams, age 47, of Cleveland Heights, Ohio, was previously sentenced to seven years in prison on January 3, 2022. 

According to court documents, in May 2020, investigators with the United States Postal Inspection Service identified three mail parcels suspected of containing drugs.  After obtaining search warrants for the parcels, postal inspectors found that each parcel contained approximately one gallon of PCP concealed in acetone containers.  Investigators identified Williams as the intended recipient of the three parcels in Ohio, and Owens as the person who mailed them from California.

Between February and March 2021, postal inspectors seized two more parcels that had been sent from California to addresses in Ohio.  Each of those two parcels was found to contain approximately one kilogram of methamphetamine.  Postal inspectors eventually identified Stewart as the intended recipient of those two drug parcels in Ohio and Owens as the person who sent them from California.   

This case was investigated by the United States Postal Inspection Service.  This case was prosecuted by Assistant U.S. Attorneys James P. Lewis and Vasile C. Katsaros.  

Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury returned guilty verdicts today against Defendant Thomas G. O’Lear, 57, of North Canton, following a five-day trial before Judge Dan Polster in Cleveland.  O’Lear was convicted of defrauding Medicare and Medicaid out of approximately $2 million by billing for x-ray related services that his company, Portable Radiology Services, did not provide, for making false statements to cover up the fraud and for committing aggravated identity theft. 

According to court documents and evidence presented at trial, O’Lear was President of Portable Radiology Services (PRS), a company that provided portable x-ray-related services to individuals residing in nursing homes, skilled nursing facilities and long-term care facilities.

Beginning in January 2013 through December 2017, O’Lear submitted false claims for reimbursement to Medicare, Medicaid and Medicaid Managed Care Organizations (MCOs) for services that he and his business did not provide, including for approximately 151 x-ray services purportedly provided to patients on dates after the patients had died.

Evidence also proved that O’Lear billed Medicare and Medicaid for purportedly having provided x-ray-related services to beneficiaries at nursing facilities on dates when the beneficiaries were hospitalized and not at the facilities; billed falsely claiming that x-ray services were performed on various dates, requiring separate reimbursement for transportation on each date; and billed one x-ray image as multiple images thereby requiring a greater reimbursement.  

The jury also found that when O’Lear was audited by a Medicaid MCO, he covered up the scheme and committed aggravated identity theft by creating false medical records and forging the signatures of others, including a doctor.

As a result of the scheme, court documents state that O’Lear fraudulently billed Medicare, Medicaid and Medicaid MCOs approximately $3.7 million in claims, and received approximately $2 million in payments. 

O’Lear is scheduled to be sentenced on August 2, 2022.  Each of the health care fraud counts carries a maximum sentence of ten years in prison.  The false statements relating to a health care matter counts carries a 5-year maximum sentence, and the aggravated identity theft counts carry a mandatory minimum of two years in prison, which must be served consecutive to any sentence imposed by the Court on the other charges.

This case was investigated by the United States Department of Health and Human Services, Office of the Inspector General, the FBI and the Ohio Attorney General’s Office and the Ohio Attorney General’s Healthcare Fraud Section.  This case is being prosecuted by Assistant U.S. Attorneys Brendan O’Shea and Elliot Morrison.

Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury returned a guilty verdict on Tuesday, April 26, 2022,  against Defendant Jeffery Grandberry, 38, of Elyria, Ohio, following a two-day trial before Judge Sara Lioi in Akron.  Grandberry was convicted of being a felon in possession of ammunition.

According to court documents, on June 6, 2021, officers with the Elyria Police Department arrived at an Elyria-area bar after receiving reports of a disturbance concerning an individual who had fired a gun in the establishment’s parking lot.  Witnesses told officers that an individual, later identified as Grandberry, became involved in an altercation, brandished a semiautomatic weapon and then fired one shot into the air while in the parking lot. 

Officers reviewed video footage of the incident, searched the parking lot and located a single spent 9mm casing.

Grandberry is prohibited from possessing a firearm due to previous convictions of attempted murder and felonious assault, aggravated burglary, burglary and assault on a police officer, all in the Lorain County Common Pleas Court.

This case was investigated by the Elyria Police Department and the FBI.  This case is being prosecuted by Assistant U.S. Attorney Scott Zarzycki.

Acting U.S. Attorney Michelle M. Baeppler announced that Demarea L. Stafford, 40, of Lorain, Ohio, was sentenced on Thursday, April 21, 2022, by Judge John R. Adams to 138 months, or eleven and a half years, in prison.  Stafford previously pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime, felon in possession of a firearm, distribution of crack cocaine and possession with intent to distribute fentanyl, phenyl fentanyl, alprazolam, methamphetamine, oxymorphone, cocaine and heroin. 

“This sentence should send a message to felons in Lorain County and everywhere in the Northern District of Ohio,” said Acting U.S. Attorney Michelle M. Baeppler.  “If you possess a firearm or engage in drug trafficking or similar criminal activity, you will soon find yourself facing significant time in federal prison.”

“Criminal acts such as these endanger countless people with potential deadly consequences,” said Cleveland FBI Special Agent in Charge Eric B. Smith.  “The FBI is firmly committed to working with our police partners to disrupt drug trafficking networks and individual offenders that plague our communities. 

According to court documents, on October 15, 2020, Narcotics Detectives with the Lorain Police Department conducted a controlled purchase of crack cocaine from Stafford after receiving information concerning his involvement in suspected drug trafficking activity.  Later, on December 12, 2020, while the investigation was ongoing, Lorain Police officers responded to an apartment building for reports of a domestic argument with multiple shots fired.  

When police arrived, they encountered the suspected gunman, later identified as Stafford, who immediately fled from officers on foot.  During the pursuit, police heard a single gunshot and subsequently located and arrested Stafford.  After the arrest, police searched the area and located a firearm, a black bag and a digital scale.  Inside the bag, officers found considerable quantities of drugs.

Officers further investigated the incident and, through witness accounts and dashcam footage, were able to determine that Stafford had been in possession of the firearm and the black bag containing the narcotics.  Stafford is prohibited from possessing a firearm due to previous convictions of drug trafficking, improper discharge of a firearm, and felonious assault in the Lorain and Cuyahoga County Courts of Common Pleas. 

This case was investigated by the Lorain Police Department and the FBI.  This case is part of Operation Synthetic Opioid Surge (S.O.S.)., which seeks to reduce the supply of deadly synthetic opioids and to identify wholesale distribution networks and international and domestic suppliers in Lorain County.

This case was prosecuted by Assistant U.S. Attorney Robert J. Kolansky. 

Acting U.S. Attorney Michelle M. Baeppler announced that Bryan Mays, 33, of Toledo, was sentenced on Thursday, April 14, 2022, by U.S. Judge Jeffrey J. Helmick to nine years in prison and three years of supervised release after Mays pleaded guilty to distributing fentanyl. 

“Fentanyl continues to plague our communities and steal our beloved ones at an alarming rate,” said Acting U.S. Attorney Michelle M. Baeppler. “Anyone who chooses to contribute to this epidemic by dealing deadly narcotics can expect to find themselves in prison.” 

“Drug trafficking cases remain one of the highest priorities of the FBI,” said Cleveland FBI Special Agent in Charge Eric B. Smith. “Whether one individual or a network of criminals, this case reflects the common goal and valuable partnership the FBI holds with law enforcement agencies to mitigate the distribution of illegal drugs and make our communities safer.”

“This conviction and sentencing should serve notice to individuals who choose to sell this poison on Toledo’s streets that we will use every available resource and partnership to bring these folks to justice,” said Toledo Police Chief George Kral. “I value our local, county, and federal partners and look forward to continuing our mission to keep this city safe.”   

According to court documents, Toledo Police Officers began an investigation into the death of an individual from a drug overdose on December 30, 2018. As a result of the investigation, police determined that Defendant Bryan Mays distributed a substance containing fentanyl to the individual. 

 This case was investigated by the Toledo Police Department and the FBI.  This case was prosecuted by Assistant U.S. Attorney Michael J. Freeman and Robert N. Melching.   

Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury returned guilty verdicts on Friday, April 15, 2022, against Defendant Joe L. Fletcher III, 33, of Akron, Ohio, following a five-day trial before U.S. District Judge Solomon Oliver, Jr., in Cleveland.  Fletcher was convicted of possession with intent to distribute crack cocaine, possession of a firearm in furtherance of a drug trafficking offense and being a felon in possession of a firearm.

Fletcher is prohibited from possessing a firearm due to prior felony convictions in the Summit County Court of Common Pleas and in the United States District Court in the Northern District of Ohio.

According to court documents and evidence presented at trial, on June 24, 2020, law enforcement officers with the Ohio State Highway Patrol attempted to stop a vehicle Fletcher was driving on Interstate 77 in Copley, Ohio.  Fletcher refused to stop and led Troopers on a high-speed chase, reaching speeds of more than 110 miles per hour.    

During the pursuit, Fletcher ran from his vehicle into a wooded swamp area.  Fletcher used his cell phone to stream his flight live over the internet, during which he threatened to shoot law enforcement.  After his arrest, authorities recovered approximately 40 grams of crack cocaine in the wooded area and a loaded, AK-style, semiautomatic rifle from Fletcher’s vehicle. 

Fletcher is scheduled to be sentenced on August 9, 2022, and faces a statutory maximum penalty of life in prison.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Ohio-Northeast Smuggling Enforcement Team (ONSET) task force; the Ohio State Highway Patrol; the Copley Police Department; and the Akron Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Peter E. Daly and Aaron P. Howell.         

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Acting U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a fifteen-count indictment charging Eiahnna Pique, 42, of Cleveland, with aiding and assisting in the preparation and presentation of a false and fraudulent income tax return.

According to the indictment, the defendant acted as a tax return preparer and operated two tax preparation franchises.  The indictment states that the defendant collected information from clients, including income, names, addresses, social security numbers and dates of birth, to use when preparing tax returns.

The indictment states that for the tax years 2015-2018, the defendant used information obtained from clients to file false and fraudulent tax returns in the names of clients and charged a fee for these services.  It is also alleged that the defendant added false Schedule C expenses and fictitious business losses to client tax returns and submitted at least one return with a false dependent.  Additionally, the defendant is accused of depositing a portion of refunds received from client returns into bank accounts controlled by the defendant without client approval or knowledge.

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

If convicted, the defendant’s sentence will be determined by the court after 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, and in most cases, it will be less than the maximum.

This case was investigated by IRS Criminal Investigation (CI) and is being prosecuted by Assistant U.S. Attorney Kathryn  G. Andrachik.

Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury returned guilty verdicts on Thursday, April 14, 2022, against Defendant Andre Badley, 49, of Cleveland, Ohio, following a four-day trial before U.S. District Judge John R. Adams in Akron.  Badley was convicted of possession with intent to distribute crack cocaine, cocaine, fentanyl and heroin, and being a felon in possession of a firearm. 

Badley was previously convicted in 1997 in the United States District Court for the Northern District of Ohio and sentenced to life in prison for distribution of crack cocaine and cocaine.  Badley served more than 23 years of that sentence and was released in 2019 under the First Step Act.

According to court documents, on March 5, 2021, law enforcement authorities executed a search warrant at a residence known to be occupied by Badley after receiving information regarding suspected drug trafficking activity.  During the search, a K-9 unit alerted authorities to the presence of controlled substances, and investigators found large quantities of crack cocaine, cocaine, fentanyl and two firearms in the residence.  Then, on March 25, 2021, Badley was found to be in possession of another large quantity of crack cocaine in his vehicle.

Badley is prohibited from possessing a firearm due to a previous conviction of drug trafficking in the United States District Court for the Northern District of Ohio.

A sentencing date has yet to be scheduled.  Badley faces a statutory maximum penalty of life in prison.

This case was investigated by the Shaker Heights Police Department, with assistance from the DEA and ATF.  This case is being prosecuted by Assistant U.S. Attorneys Robert J. Kolansky and Vanessa V. Healy.

Acting U.S. Attorney Michelle M. Baeppler announced that Andrew Samuel Davis Strickland, 27, of Youngstown, Ohio, was sentenced on Tuesday, April 12, 2022, by U.S. Judge Patricia A. Gaughan to more than 21 years, or 262 months, in prison and ten years of supervised release after Strickland pleaded guilty to sexual exploitation of a child. 

“This defendant engaged in reprehensible behavior and perpetrated unspeakable crimes against the most vulnerable of victims,” said Acting U.S. Attorney Michelle M. Baeppler.  “This lengthy sentence reflects our commitment to protecting vulnerable victims and punishing individuals who engage in this type of conduct.”

“Coercing and threatening children through social media and further, the sexual exploitation of a child, is callous and repulsive,” said FBI Special Agent in Charge Eric B. Smith. “The cooperative efforts among federal, state, and local partners made it possible to bring a devious predator to justice. The FBI will continue to work collaboratively to combine our resources and share our expertise to identify those who commit these appalling crimes.”

According to court documents, in July of 2019, law enforcement officials began an investigation into Strickland after learning that Strickland coerced two minors into engaging in and filming a sexually explicit encounter.

Court documents state that Strickland met one of the victims through Facebook and coerced the victim into providing sexually explicit images.  After receiving the images, Strickland then threatened to send the images to the victim’s family members if the victim did not give in to his demands.  Additionally, Strickland coerced the victim into engaging in and recording a sexual encounter, which was perpetrated on a second minor victim.  Strickland then sent the recording to other members of the first victim’s family. 

According to court records, the victim complied with Strickland’s demands out of fear that Strickland would harm the victim or the victim’s family members.

This case was investigated by the Trumbull County Sheriff’s Office, the Federal Bureau of Investigation, Ohio Bureau of Criminal Investigation-Crimes Against Children and the Mahoning Valley Violent Crimes Task Force.  This case was prosecuted by Assistant United States Attorneys Michael A. Sullivan and Yasmine T. Makridis.

Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury convicted Brandon Bethune, 37, of Cleveland, Ohio, on Thursday, April 7, 2022, of possession of ammunition by a convicted felon.  Bethune was found guilty after a three-day trial before Judge J. Philip Calabrese.

According to court documents and evidence presented at trial, on March 20, 2021, Cleveland Police officers responded to a residence after a call concerning reports of domestic violence.  Officers met the caller and were advised of a man inside the residence with a firearm threatening to shoot the caller.  After securing the residence, officers located Defendant Bethune inside, and he was subsequently arrested. 

During the arrest, CDP officers recovered a firearm in the defendant's waistband that contained a round of ammunition jammed in its chamber.  After he was transported to Cuyahoga County Detention Center, Cuyahoga County Sheriff's officers conducted another pat-down of the defendant and discovered the firearm's magazine, which contained four rounds of ammunition. 

Bethune is prohibited from possessing a firearm or ammunition due to multiple prior felony convictions, including convictions for felonious assault and attempted felonious assault in the Cuyahoga County Court of Common Pleas.

Bethune is scheduled to be sentenced on August 2, 2022, and faces a statutory maximum penalty of ten years in prison.

This case was investigated by the ATF, Cleveland Division of Police, and the Cuyahoga County Sheriff's Office.  This case is being prosecuted by Assistant U.S. Attorneys Adam J. Joines and Bryson N. Gillard.

Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury returned guilty verdicts on Thursday, April 7, 2022, against Defendant Marcus L. Sanders, 24, of Parma Heights, Ohio, following a four-day trial before Judge Benita Y. Pearson in Youngstown.  Sanders was found guilty of distributing fentanyl that led to the death of an individual and possession with intent to distribute fentanyl, heroin, N-Butyl Pentylone, cocaine and marijuana.

According to court documents and evidence presented at trial, on May 3, 2020, Middleburg Heights Police responded to a call for a suspected overdose at a residence.  First responders arrived and transported the individual to a hospital, where they were later pronounced deceased.  The Cuyahoga County Medical Examiner’s Office conducted an autopsy and determined the victim’s cause of death to be acute intoxication by fentanyl and diphenhydramine.

Law enforcement officials began an investigation into the overdose incident and identified Sanders as the person who had distributed the fentanyl that led to the fatal overdose.  Sanders was later arrested, and his residence and vehicle were searched.  During the search, officials obtained quantities of fentanyl, N-Butyl Pentylone, heroin, cocaine and marijuana. 

Sanders is scheduled to be sentenced on August 4, 2022, and faces a maximum possible sentence of life in prison.  

This case was investigated by the Middleburgh Heights Police Department and the DEA, with assistance from the Cuyahoga County Medical Examiner’s Office, the Cuyahoga County Regional Forensic Science Laboratory, and the FBI Cellular Analysis Survey Team.  This case was prosecuted by Assistant U.S. Attorneys James P. Lewis and Patrick P. Burke.

 

Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury convicted Defendant Stephon Cunningham, 43, of Cleveland, Ohio, of being a felon in possession of a firearm and ammunition following a five-day trial before U.S. District Judge Christopher A. Boyko in Cleveland.

According to court documents, on June 1, 2019, Cleveland Police responded to a call regarding a male carrying two firearms.  Police officers arrived at the scene, searched the area, and obtained two handguns, a Hi-Point 9mm caliber semi-automatic pistol, and a Smith & Wesson 9mm semi-automatic pistol, hidden underneath a tire in the backyard of a residence.  Officers then interviewed witnesses who confirmed that they saw Cunningham exit a vehicle while holding both weapons.  Witnesses told officers that Cunningham then walked into a backyard only to later returned without possession of the firearms.

Officers learned that both firearms were reported as stolen, and Cunningham was arrested.  Cunningham’s DNA was later recovered from one of the weapons.  Cunningham is prohibited from possessing a firearm due to previous convictions of drug trafficking and drug possession in the Cuyahoga County Common Pleas Court.

Cunningham is scheduled to be sentenced on July 26, 2022.  He faces a maximum possible sentence of ten years in prison.

This investigation was conducted by the ATF and Cleveland Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Elizabeth M. Crook and Margaret A. Kane.

Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury returned guilty verdicts on Friday, April 1, 2022, against Defendant Juan R. Grogan, 30, of Canton, Ohio, following a two-day trial before Judge Donald C. Nugent in Cleveland.  Grogan was found guilty 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, while conducting an investigation, law enforcement officers reviewed video footage from an incident that occurred on December 1, 2020, involving a pair of vehicles driving in the Canton area and exchanging gunfire.  Investigators believed that Grogan was the operator of one of the vehicles. 

On December 7, 2020, law enforcement officials sought to arrest Grogan on outstanding warrants for kidnapping, aggravated robbery and felonious assault issued by the Canton Municipal Court.  During the execution of the warrants, officers located the vehicle used in the earlier shooting parked at a Canton-area residence and witnessed Grogan flee the area.

Officials then searched the vehicle and obtained a loaded Glock, model 30 handgun, additional ammunition, 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.  Grogan faces a max possible sentence of life in prison.

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.

Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury convicted Devonte L. Fellows, 26, of Cleveland, Ohio, on Friday, March 25, 2022, of distributing fentanyl that led to the death of an individual.  The jury returned the verdict after a four-day trial before Judge Donald C. Nugent in Cleveland.

According to court documents and evidence presented at trial, detectives with the Cuyahoga Falls Police Department began an investigation into the April 26, 2019, overdose death of an individual found unresponsive.  During the investigation, law enforcement officers recovered a substance containing fentanyl from the deceased’s residence.  The Summit County Medical Examiner’s Office performed a full autopsy and determined that the cause of death was acute fentanyl toxicity.   

Court records state that investigators later determined that Defendant Devonte L. Fellows distributed a fentanyl mixture to the victim, who ingested it, overdosed and died.  During an interview with investigators, Fellows admitted to selling drugs, including fentanyl, to the deceased.

Fellows is scheduled to be sentenced on June 30, 2022.  He faces a maximum possible sentence of life in prison.

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

 

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Acting U.S. Attorney Michelle M. Baeppler announced that Jonathan L. Stinnett, 36, of Jackson Township, Ohio, pleaded guilty today to kidnapping a five-year-old child and possession of child pornography.

“Thanks to quick work of law enforcement and a vigilant community, an innocent child was reunited with their family and spared from an unknown fate,” said Acting U.S. Attorney Michelle M. Baeppler.  “Nothing unites all of us in this region more than working to protect and ensure the safety of our children.”

According to court documents, on November 11, 2021, Stinnett kidnapped a five-year-old child and transported the child across state lines to Illinois for the purposes of sexual gratification and exclusive companionship. 

On November 12, the McLean County Sheriff’s Department in Bloomington, Illinois, received a call regarding a suspicious parked vehicle.  Deputies responded to the area and located a van suspected to have been involved in a reported kidnapping.  Deputies approached the vehicle and located Stinnett and the victim inside.

Stinnett was arrested and later confirmed his involvement in the kidnapping to law enforcement officials.  Stinnett was also found to have been in possession of a flash drive containing visual depictions of child pornography.

Stinnett is scheduled to be sentenced on July 6, 2022. 

This case was investigated by the FBI, Jackson Township Police Department and the McLean County Sheriff’s Department in Bloomington, Illinois.  This case is being prosecuted by Assistant U.S. Attorneys Peter E. Daly and Aaron P. Howell.

Acting U.S. Attorney Michelle M. Baeppler announced that Marcus C. Williams, 52, of Campbell, Ohio, was sentenced on Thursday, March 24, 2022, by U.S. District Judge  Christopher A. Boyko to 15 months in prison, three years of supervised release and ordered to pay $172,943 in restitution to the Social Security Administration (SSA) after Williams pleaded guilty to theft of government property.

“Stealing funds intended for a legitimate Social Security dependent is a guaranteed way to face prosecution and potential time in prison,” said Acting U.S. Attorney Michelle M. Baeppler.  “Stealing Social security funds is not a victimless crime and has real consequences.”

“As a representative payee for his grandfather, a beneficiary of Retirement Insurance Benefits, Mr. Williams had a responsibility to report his grandfather’s death to SSA.  However, Mr. Williams discarded that responsibility and instead falsely reported to SSA that his grandfather was alive so that Mr. Williams could use those stolen funds from SSA in excesses of more than $172,000 for his personal use,” said Gail S. Ennis, Inspector General for the Social Security Administration. “This sentence demonstrates that my office will continue to pursue those who commit Social Security fraud. I thank the U.S. Postal Inspection Services for joining us in this investigation.  I also thank the U.S. Attorney’s Office and Special Assistant U.S. Attorney Jason White for holding Mr. Williams accountable.”

According to court documents, at the time of his death, the defendant’s grandfather received Retirement Insurance benefits from the SSA that were paid directly to the defendant as the representative payee.  As a representative payee, Williams was responsible for ensuring that payments were used for the good of the beneficiary and was required to report to the SSA any changes in circumstances, including the death of the beneficiary.

Court documents state that from May 2008 to October 2019, Williams reported to the SSA that his grandfather was living, when he knew that to be untrue and used money intended for his grandfather for his own personal use.

In total, Williams stole $172,943 in Retirement Insurance benefits from the SSA.

This case was investigated by the Social Security Administration Office of the Inspector General.  This case was prosecuted by Special Assistant United States Attorney Jason W. White.

 

Acting U.S. Attorney Michelle M. Baeppler announced that Michael Meridieth, 41, of Toledo, Ohio, was sentenced today to one year and one day in prison and ordered to pay 1,125,268.84 in restitution after he pleaded guilty to attempt to evade and defeat income tax.

According to court documents, from 2004 to the present, Meridieth owned and operated five different businesses in the Toledo area.  At each business, Meridieth handled the accounting and bookkeeping, which included the withholding of employment taxes from employee paychecks. 

At each business, except for one, Meridieth failed to timely file employer tax returns or make timely deposits of employer taxes to the IRS.  Each business, except for one, shut down owing payroll taxes and withholdings to the IRS.  Instead of making these payments, Meridieth transferred the assets of one business to another to continue business operations and avoid paying accumulated tax liabilities.

Instead of making timely payments to the IRS, Meridieth used these withheld funds on personal expenses to support a lavish lifestyle, such as the purchase of a snowmobile and to pay for a visit to a rehabilitation facility.  In addition, while payroll taxes were outstanding, Meridieth allowed himself and his business associates to spend business funds on personal expenditures, including furniture, jewelry and a country club membership.

In total, Meridieth failed to pay more than $1.1 million in employment taxes.

This case was investigated by IRS-Criminal Investigation.  This case was prosecuted by Assistant United States Attorney Vanessa Healy.

Acting U.S. Attorney Michelle M. Baeppler announced that Tandre Buchanan, 24, of Cleveland, was sentenced today by U.S. District Judge Donald C. Nugent to four years in prison after Buchanan was convicted at trial of robbery and tampering with evidence during the May 30, 2020, demonstrations and civil unrest in downtown Cleveland.

“Stealing from and deliberately damaging a business is unacceptable no matter the underlying intention or purpose,” said Acting U.S. Attorney Michelle M. Baeppler.  “The right to engage in peaceful protest is guaranteed under the Constitution and must always be protected.  Using that as an excuse to commit crimes against the innocent is an adulteration of that right.”

“Violent, deliberate attacks against individuals and businesses is appalling,” said FBI Special Agent in Charge Eric B. Smith. “Tampering with evidence further adds to the criminal misconduct. The FBI will continue to investigate cases that aim to cripple commerce, whether small businesses or large corporations.”

According to court documents and evidence presented at trial, on May 30, 2020, Buchanan participated in a demonstration in downtown Cleveland to protest the death of George Floyd in Minneapolis, Minnesota.  Later that day, Buchanan, wearing a bright orange jacket, head covering and shoes, came to Colossal Cupcakes located at 528 Euclid Avenue.

Court documents state that Buchanan then threw an object that shattered a large window, entered the business through the broken window, and encountered the store owner and employees, who locked themselves in a bathroom to call for help. 

Buchannan then removed a chair from the shop and exited through the same window.  Using the chair, Buchanan repeatedly smashed a second window until it finally shattered and fell out.   Court documents state that multiple individuals then entered the business through the broken window, destroyed the shop’s interior and stole several items, including store inventory and iPads, all while Buchanan was smashing the second window.

Buchanan was also convicted of evidence tampering after it was revealed that Buchanan disposed of the bright orange clothing he wore the day of the crime in an attempt to conceal his identity and participation in the crime.   Buchanan was ultimately identified and arrested based on multiple identifications made from photos released to the public.

This case was investigated by the FBI with the assistance of the Cleveland Police Department.  This case is being prosecuted by Assistant United States Attorney Scott C. Zarzycki.

Acting U.S. Attorney Michelle M. Baeppler announced that Thomas Anthony Walker, Jr., 36, of Akron, Ohio, was sentenced on Tuesday, March 22, 2022, by U.S. District Judge Benita Y. Pearson to more than five years, or 62 months, in prison after Walker pleaded guilty to attempting to possess and distribute 655 pills containing fentanyl that were labeled as oxycodone.

According to court documents, in April of 2021, a package was interdicted by a Postal Inspector with the United States Postal Inspector Service.  The package was suspected of containing drugs after a K9 unit detected the presence of narcotics.  Investigators later obtained a warrant, searched the package and retrieved 655 tablets labeled as oxycodone, which actually contained a total of 71 grams of fentanyl.

Investigators then conducted a controlled delivery and later arrested defendant Thomas Anthony Walker Jr. as he attempted to retrieve the package.

This case was investigated by the United States Postal Inspection Service (USPIS) and the Akron Police Department.  This case was prosecuted by Assistant United States Attorney Aaron P. Howell. 

Acting U.S. Attorney Michelle M. Baeppler announced that Quentin D. Watson, 35, of Akron, Ohio, was sentenced on Wednesday, March 16, 2022, by U.S. District Judge Pamela A. Barker to 30 years in prison and ordered to pay $4,503.01 in restitution for the victim’s funeral costs after Watson was convicted at trial of distributing fentanyl that led to a fatal overdose, possession with the intent to distribute methamphetamine and fentanyl and possession of a firearm in furtherance of a drug trafficking crime. 

“Thousands of lives have been lost, and so many families have endured crushing pain and suffering due to the opioid epidemic here and across the country,” said Acting U.S. Attorney Michelle M. Baeppler. “Drug dealers who exploit the vulnerabilities that addiction creates should be prepared to serve lengthy prison sentences.”

According to court documents and evidence presented during trial, on June 24, 2020, law enforcement officers responded to an Akron-area residence for a report of a drug overdose.  Upon arrival, officers located a deceased individual and began an investigation.  It was later determined that the decedent suffered an overdose after ingesting a fentanyl and heroin mixture. 

While the investigation into the overdose death was ongoing, Watson was arrested on October 6, 2020, during a traffic stop after officers found that he possessed various amounts of fentanyl, methamphetamine and a 9-millimeter pistol in his vehicle.  Law enforcement later completed their investigation into the overdose death and determined that Watson did distribute a fentanyl mixture to the victim who ingested it, overdosed and died.    

This case was investigated by the FBI, Akron Police Department, Akron Fire Department, Summit County Medical Examiner’s Office and Ohio Bureau of Criminal Investigation.  This case was prosecuted by Assistant United States Attorneys Aaron P. Howell and Christopher J. Joyce. 

Acting U.S. Attorney Michelle M. Baeppler announced that Holden Gallagher, 29, of Sylvania, Ohio, was sentenced on Wednesday, March 16, 2022, by U.S. District Judge James G. Carr to 30 years in prison and lifetime supervised release following prison, after Gallagher pleaded guilty to sexual exploitation of a child, receipt and distribution of child pornography, and possession of child pornography.

“The Justice Department and law enforcement in this region will work tirelessly to deter and prosecute those why prey upon our children,” said Acting U.S. Attorney Michelle M. Baeppler.  “Mr. Gallagher, a repeat offender, has earned this lengthy prison sentence and will no longer be able to abuse others.” 

“Criminal misconduct with the intent to exploit children is reprehensible,” said FBI Special Agent in Charge Eric B. Smith. “The investigative work of the FBI underscores our duty to protect children from heinous individuals. Our partnerships with federal and state investigators in concert with local agencies continue to make an impact in our communities to thwart predatory behavior.”

According to court documents, on July 31, 2015, law enforcement investigators executed a federal search warrant at a Sylvania residence suspected of sharing digital files of child pornography.  During the execution of the warrant, investigators obtained several electronic devices, including a laptop and hard drive. 

Investigators searched the electronic devices and discovered that they contained numerous files of child pornography.  Additionally, investigators determined that some of the images contained a depiction of a minor known to Gallagher.  It was also determined that Gallagher had corresponded with the minor victim and gotten the minor to produce images of child pornography.

At the time of the offense conduct, Gallagher was a registered sex offender following a 2011 conviction for gross sexual imposition of a minor for which Gallagher was still on probation.

This case was investigated by the Federal Bureau of Investigation and state and federal investigators on the Child Exploitation and Human Trafficking Task Force, including the lead investigator from Defiance County Sheriff’s Office.  This case was prosecuted by Assistant U.S. Attorneys Tracey Ballard Tangeman and Angelita Cruz Bridges.

Acting U.S. Attorney Michelle M. Baeppler announced that Lawrence Lawson, 41, of Cleveland, Ohio, was sentenced on March 15, 2022, to 51 months in prison and ordered to pay $355,849 in restitution after Lawson pleaded guilty to his role in a conspiracy that fraudulently obtained COVID-19 pandemic unemployment insurance benefits.

“Mr. Lawson and his codefendants stole taxpayer dollars intended to help our neighbors and community members pay their bills and obtain basic necessities while the pandemic disrupted lives and caused many to lose their jobs or livelihood,” said Acting U.S. Attorney Michelle M. Baeppler.  “This is not a victimless crime. If you steal from the government, you will be caught and you will be held accountable.”

“The deliberate actions of these individuals to cheat a program designed to assist people who were affected by the COVID-19 pandemic is inexcusable,” said FBI Special Agent in Charge, Eric B. Smith. “Financial crimes involving pandemic unemployment assistance affects self-employed individuals, independent contractors, gig-economy workers, and others who don’t qualify for traditional unemployment benefits. The FBI will continue to stand steadfast with other federal agencies to enhance the investigative work needed when examining complex financial fraud cases.”

“The egregious and self-serving actions of these fraudsters robbed federal aid and assistance from hard-working Americans experiencing unprecedented economic hardships as a result of the global pandemic,” stated Acting Special Agent-in-Charge Brandon Gardner with the Housing and Urban Development (HUD) Office of Inspector General (OIG). “HUD OIG is committed to working with its law enforcement partners to protect the integrity of federally funded housing programs and diligently pursue action against those who seek to illegally benefit from them.”

Charged as co-conspirators in the indictment were Cierra Clifton, 38, Willowick, Ohio; Emanuel Smith, 49, Cleveland, Ohio; Terrance Jones, 27, Cleveland, Ohio; Quantez Lawson, 29, Cleveland, Ohio; Charles Moore, 35, Cleveland, Ohio and Mark Dailey, 54, Cleveland, Ohio.

According to court records, from May through November of 2020, Lawson would recruit co-conspirators and other individuals to file pandemic unemployment insurance benefit claims on their behalf in exchange for a portion of the proceeds received. 

Court records state that these individuals then provided Lawson and Clifton with their personal identifying information, and Clifton would file the claims on their behalf from her residence in Willoughby, Ohio.  Clifton submitted claims through the Ohio Department of Jobs and Family Services (ODJFS) and other State Workforce Agencies (SWAs) in Pennsylvania, Arizona, Rhode Island, Delaware, Hawaii, Montana, Arizona and California.

If a claim was processed successfully, a pre-loaded bank-issued debit card was mailed to the recipient.  Lawson and Clifton then took a portion of the funds received as payment.  As ODJFS and the other SWAs required re-certification of  an unemployed person’s status, Lawrence and Clifton charged an additional weekly fee to provide this service to their co-conspirators.  If an individual failed to pay this fee, Lawrence and Clifton ceased verification of the unemployment status and the benefits would stop. 

As a result of the scheme, ODJFS and other SWAs suffered a loss of approximately $355,849.

Previously sentenced in this matter were:

• Cierra Clifton was sentenced to 16 months in prison and ordered to pay $355,849 in restitution. 
• Emmanuel Smith was sentenced to 17 months in prison and ordered to pay $23,783 in restitution.
• Terrance Jones was sentenced to 26 months in prison and ordered to pay $355,849 in restitution.
• Charles Moore was sentenced to 8 months in prison and ordered to pay $15,246 in restitution.
• Quantez Lawson is scheduled to be sentenced on March 24, 2022.

“Lawrence Lawson conspired to file fraudulent unemployment insurance claims, diverting vital taxpayer resources away from those in dire need of unemployment benefits. Protecting the integrity of the unemployment insurance program remains one of our highest priorities, and we will continue to work with our law enforcement partners to safeguard the unemployment benefits for those who need it, especially during this critical time,” said Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General, Chicago Region.

This case was investigated by the FBI, U.S. Department of Labor-Office of Inspector General and the U.S. Housing and Urban Development-Office of Inspector General.  This case was prosecuted by Assistant U.S. Attorneys Megan R. Miller and Erica D. Barnhill.

If you believe you’ve been a victim of unemployment insurance fraud, please report the matter to the National Center for Disaster Fraud by calling (866) 720-5721 or visiting www.justice.gov/disaster-fraud.

 

Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury returned guilty verdicts on Monday, March 14, 2022,  against Defendant Terry L. Jackson Sr, 50, of Elyria, Ohio, following a three-day trial before U.S. District Judge Donald C. Nugent in Cleveland. 

Jackson was convicted of distributing cocaine base, possession with intent to distribute fentanyl, possession with intent to distribute cocaine and possession with intent to distribute methamphetamine.

According to court documents, in February of 2019, law enforcement officers with the Elyria Police Department began an investigation into Terry L. Jackson Sr. after receiving information that Jackson was distributing drugs out of an Elyria-area motel room.  As a result, investigators conducted a controlled buy from Jackson and obtained a quantity of cocaine base.  After the buy, investigators obtained and executed a search warrant for the hotel room where Jackson was residing.

During the execution of the warrant, investigators encountered Jackson alone in the room and obtained quantities of fentanyl, cocaine and methamphetamine.  Jackson was subsequently arrested.

Jackson is scheduled to be sentenced on June 20, 2022.  He faces a maximum possible sentence of 30 years in prison.

Acting U.S. Attorney Michelle M. Baeppler and FBI Special Agent in Charge Eric B. Smith made the announcement.

This investigation was conducted by the Elyria Police Department, with assistance from the FBI and the Ohio Adult Parole Authority.  This case is being prosecuted by Assistant U.S. Attorneys Robert J. Kolansky and Payum Doroodian.

Federal law enforcement officials today announced the arrest of three men charged in a 30-count indictment for their roles in a drug trafficking conspiracy that is alleged to have brought over 500 kilograms, or approximately 1,100 pounds, of cocaine from Mexico to be redistributed in the Cleveland area. 

“Drug trafficking organizations target communities like Cleveland because they mistakenly assume nobody is paying attention,” said Acting U.S. Attorney Michelle M. Baeppler.  “To those drug traffickers, both foreign and domestic, who think that our communities and neighborhoods here in Northern Ohio are open for your businesses – know that we are watching, we are paying attention, we will act  and we will not stand for it.”

“Thanks to the professionalism and diligence of the agents and officers working this case, we have disrupted an organization that coordinated not only the delivery of significant amounts of cocaine into Cleveland, but the delivery of drug proceeds into the hands of their Mexican source of supply,” said Kent R. Kleinschmidt, Acting Special Agent in Charge of the U.S. Drug Enforcement Administration’s Detroit Field Division.  “These arrests are a testament to the coordinated efforts between state, local and federal law enforcement.  We will continue to maximize all of our combined resources to bring those who traffic drugs into our communities to justice.”

Arrested today and charged in the indictment are Christopher Ficklin, 49, of Cleveland Heights, Ohio, and Robert Atkinson, 41, of Cleveland, Ohio.  Additionally charged in the indictment as part of the drug trafficking organization is David Gomez-Orrantia, 41, of Mexico.  Gomez-Orrantia was arrested on March 11, 2022.  Other members of the organization remain at large.

Each member of the drug trafficking organization is charged with conspiracy to distribute controlled substances.  Members of the drug trafficking organization are also charged with various additional counts of interstate travel in aid of racketeering, possession with intent to distribute cocaine, distribution of cocaine, international money laundering and use of a communications facility to facilitate a felony drug offense.  Defendant Ficklin is also charged as a felon in possession of a firearm. 

According to the indictment, around June of 2020,  Gomez-Orrantia and others shipped kilogram quantities of cocaine from Mexico to a warehouse controlled by defendant Ficklin on Carnegie Avenue in the city of Cleveland.  The indictment states that Ficklin then redistributed the drugs to Atkinson and others to be further redistributed throughout the area.

It is alleged that the conspirators used trucks and vehicles fitted with traps and hidden compartments to store the cocaine when it was transported to the city.  After the drugs were delivered, it is alleged that members of the conspiracy then transported drug trafficking proceeds back to Mexico using the same vehicles and hidden compartments and documented the transactions in a hand-written ledger.

Furthermore, the indictment charges members of the conspiracy with using multiple cell phones and coded terminology in an attempt to conceal their activity.

In total, it is alleged that the drug trafficking organization shipped over 1,100 pounds of cocaine from Mexico to be distributed in the Cleveland area and sent approximately 13 million in drug trafficking proceeds back to Mexico.

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

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

This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.  OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The investigation preceding the indictment was conducted by the DEA, Cleveland Heights Police Department, Cuyahoga County Sherriff’s Office and the Ohio State Highway Patrol.  Additional assistance was provided by the FBI, U.S. Marshals Service, DEA – El Paso, Customs Border Patrol (CBP) Sandusky Bay Border Patrol Intelligence, CBP – El Paso and the Lorain County Drug Taskforce.

This case is being prosecuted by Assistant U.S. Attorney Robert J.  Kolansky.  

Acting U.S. Attorney Michelle M. Baeppler announced that Angelo Kanaris, 42, of Strongsville, Ohio, was sentenced on Monday, March 14, 2022, by U.S. District Judge Christopher A. Boyko to six months in prison, six months of home confinement and ordered to pay $87,068 in restitution to the IRS after Kanaris pleaded guilty to a Bill of Information charging him with one count of bank fraud and four counts of filing a false tax return.

According to court documents, beginning in 2013, Kanaris worked as an accountant for a Cleveland-area company, where he was responsible for writing checks to the company vendors and preparing sales tax returns.  During this time, Kanaris began writing checks ostensibly on behalf of the company to third-party vendors; however, Kanaris used a mobile deposit feature to deposit these checks into his bank account for personal use.

From in or around 2013 through 2017, Kanaris embezzled approximately $375,656.55 from the company while working as an accountant.  Additionally, Kanaris failed to report this income change as taxable income on his personal tax returns for the years 2013 through 2017.

This case was investigated by the FBI and Internal Revenue Service – Criminal Investigation.  This case is being prosecuted by Assistant U.S. Attorney Alejandro A. Abreu.