Northern District of Ohio

A federal grand jury indicted Adam Carson, 34, of Amherst, on bank robbery charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

 

The indictment alleges that on or about November 21, 2016, Carson, by force, violence, and intimidation, took approximately $5,590 from the person and presence of a teller at Chemical Bank, 1977 Cooper Foster Park Road in Amherst.

 

The Amherst Police Department and the Federal Bureau of Investigation conducted the investigation. The case is being prosecuted by Assistant U.S. Attorney Ranya Elzein.

 

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

 

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.

Three people from Marion were charged in federal court with stealing nearly $63,000 worth of government property, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.

 

Charged in the criminal information were Carol Brown, 58; Lisa Brown, 46, and Donald Brown, 61. They were each charged with one count of theft of government property.

 

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

 

The investigating agency in this case is the U.S. Railroad Retirement Board – Office of Inspector General, in Philadelphia. case is being handled by Assistant United States Attorney Tracey Ballard Tangeman.

 

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

A Boardman man was charged in federal court with defrauding investors out of nearly $1.2 million and related tax violations, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the FBI and Troy Stemen, Acting Special Agent in Charge of the IRS’s Cincinnati Field Office.

George N. Krinos was charged in a two-count criminal information with engaging in a securities fraud scheme and willfully failing to collect and pay taxes for his employees. 

The information alleges that Krinos, through his various companies known as Krinos Holdings, engaged in a securities fraud scheme in which he sold through false and deceptive practices securities to numerous victims in the Northern District of Ohio.  These securities consisted of debenture notes and private placement memoranda that were not properly registered with the Securities and Exchange Commission.  Because the securities were not registered with and therefore subject to greater scrutiny by the SEC, Krinos was limited to selling them to “accredited investors” who were generally individuals having a net worth in excess of $1 million or who met specific, high-dollar income thresholds. 

The information alleges that from 2011 through 2014, Krinos sold these unregistered securities to at least 10 investors in Ohio, causing them financial losses.  Krinos sold the securities under the pretense that his investors’ funds would be used for legitimate business purposes, including to provide venture capital to various client companies seeking funding from Krinos Holdings.  Rather than use these funds for their intended uses, Krinos instead used the money for personal expenses and to engage in unauthorized foreign currency transactions.  To entice his victims, Krinos made promises that their initial investments of $.10 per share would rise in value to as much as $5 or $6 per share.   Krinos also falsely told investors and others that he managed approximately $600 million in an investment account when he in fact had only $5 in the account. 

The information further alleges that Krinos submitted falsified letters and statements to reflect high balances in his accounts.  Krinos also falsely told investors that they were making high returns on their investments and that his relationships with the client companies was on good terms.  Contrary to his representations to his investors, Krinos actually used their funds on for his own personal use at restaurants, bars, casinos, adult entertainment clubs and hotels.  Rather than disclose these personal expenses, Krinos later characterized them as “sales and marketing” costs in a budget given to his shareholders at a meeting in Boardman, in 2013.

Over the course of his securities fraud scheme, Krinos caused more than ten victims to lose nearly $1.2 million.   

The information also alleges that, in addition to the securities fraud scheme, Krinos improperly withheld taxes, including federal income taxes and Federal Insurance Contribution Act taxes from his employees without paying over those taxes to the IRS.  Over the course of approximately two years, Krinos improperly withheld and kept approximately $91,495 of his employees’ tax contributions from the IRS. 

“This defendant lied to investors as means to funding a lavish lifestyle for himself,” Rendon said.

“Krinos’ victims extend not only include those who entrusted their financial assets to Mr. Krinos, but his employees and the taxpayers whose payroll taxes were squandered to further his personal gain,” Stemen said. “IRS-Criminal Investigation will continue devote our investigative resources to ensure honesty and integrity in the financial and tax systems and hold those accountable who threaten them.”   

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

This case is being prosecuted by Assistant U.S. Attorneys Om Kakani and Robert J. Patton, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.

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

A North Royalton woman was charged in federal court for embezzling approximately $2 million from Catholic Charities of the Diocese of Cleveland, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.

Michelle Medrick, 58, was charged via criminal information with bank fraud.

The information alleges that Medrick embezzled approximately $2 million from Catholic Charities in a scheme to defraud Fifth Third Bank and to obtain money under the custody and control of Fifth Third Bank by means of false and fraudulent pretenses and representations from in or around 2008 to March 2016. 

At various times, Medrick was employed as the Comptroller and the Business Manager of Catholic Charities. The information alleges that as part of the scheme, Medrick converted proceeds of client-agency and donor checks to cash, which she used for her own benefit.

The information further alleges that Medrick altered copies of the checks, which she then placed into Catholic Charities’ records.

“The Diocese uncovered the fraud and came forward to federal authorities,” Rendon said. “They are cooperating fully. The defendant will now be held accountable for her criminal activity.”

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

The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation.

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

A Cleveland woman was sentenced to six months incarceration for fraudulently receiving more than $35,000 in Social Security benefits, U.S. Attorney Carole S. Rendon said.

 

Andrea J. Smiley, 35, was previously found guilty of theft of government property. She was representative payee for her minor son who was receiving Social Security disability benefits. Smiley’s son was in the custody of the Cuyahoga County Department of Child and Family Services as of March 2011. She failed to notify the Social Security Administration that her son was no longer in her custody, according to court documents.

 

Smiley submitted four false annual reports that her son was living with her and that the benefits were used for his care.  From April 2011 through May 2015 the defendant fraudulently received and converted to her own use $35,279 in SSA benefits, according to court documents.

 

Smiley was ordered to repay that amount to the Social Security Administration.

 

This case was prosecuted by Special Assistant U.S Attorney Lisa J. Sanniti following an investigation by the Social Security’s Office of the Inspector General.

U.S. Attorney Carole S. Rendon announced that the Northern District of Ohio collected more than $62.3 million in fiscal year 2016 from criminal and civil actions.

Approximately $55.2 million was collected in criminal actions and about $7.1 million in civil actions. 

The office’s total overall budget for this fiscal year was approximately $14 million.

“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Loretta Lynch.  “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment.  I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”

“In addition to locking up violent criminals, strengthening our region’s cyber defense, pushing back on Ohio’s opioid epidemic and other myriad responsibilities, the men and women of the U.S. Attorney’s Office have brought in more than four times our annual budget,” Rendon said. “For more than a decade our office has collected more than we cost the taxpayers.”

The money is used to compensate crime victims, is distributed to state and local law enforcement partners who participate in investigations and is returned to the general treasury.

Among the significant collections this year:

U.S. v. Harold Persaud: Dr. Persaud was convicted in 2015 of one count of health care fraud, 13 counts of making false statements and one count of engaging in monetary transactions in property derived from criminal activity. He was ordered to pay $5.4 million in restitution to the Medicare program and private insurers. Persaud has paid all of this money to the court pending the outcome of his appeal.

U.S. v. Peter Luchansky: Peter Luchansky was convicted in 2015 of defrauding a North Canton company of nearly $2.5 million. The USAO has collected $2.4 million of the total debt which has been returned to the victim company.

U.S. v. John Michael Lonergan: Dr. Lonergan was convicted in 2004 of health care fraud and ordered to pay $339,000 in restitution. Lonergan left Ohio after losing his medical license and had paid very little on his debt after his conviction. Thanks to enforced collection efforts by the U.S. Attorney’s Office, Lonergan appeared in U.S. District Court and paid $306,842 via a cashier’s check to resolve in full his long-outstanding restitution obligation.

U.S. v. Stephen Varkony:  Stephen Varkony was convicted of a conspiracy to commit mail and wire fraud and ordered to pay $344,551 to the Ohio Department of Taxation. The U.S. Attorney’s Office has collected $186,000 of this restitution obligation.

The Justice Department collected approximately $15.3 billion in civil and criminal actions across the country in the 2016 fiscal year.  

The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are 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 to state victim compensation and victim assistance programs. 

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

A complete breakdown of collections in the Northern District of Ohio over past decade is as follows:

2015: $40.7 million

2014: $356.7 million

2013: $23.9 million

2012: $79.7 million

2011: $48.6 million

2010: $42 million

2009: $17.7 million

2008: $36.7 million

2007: $63.5 million

2006: $80 million

2005: $51.4 million

2004: $22.3 million

An insurance salesman and former resident of Parma, Ohio was convicted today following a five-day jury trial of fifteen counts of willful failure to pay income taxes and five counts of willful failure to file income tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division; U.S. Attorney Carole S. Rendon for the Northern District of Ohio; and Acting Special Agent in Charge Troy N. Stemen for the Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office.

According to the evidence presented at trial, John Christopher Raschella, 57, currently a resident of Estero, Florida, failed to pay more than $1 million in income taxes, interest and penalties that he owed to the IRS for 1995, 1996, and 1998 through 2012.  During those years, Raschella sold insurance, and earned additional income working for other insurance salesmen.  

Between 1989 and 2012, Raschella failed to timely file income tax returns to report his income to the IRS.  For several years, Raschella filed delinquent income tax returns on which he reported that he owed taxes, but failed to make the required payments.  For other years, the IRS assessed Raschella’s taxes and sent him letters notifying him of the amount owed, but Raschella still failed to pay.  The government’s evidence also demonstrated that between 2010 and 2012, Raschella filed numerous false tax returns on which he, among other falsities, underreported his income and claimed deductions for alimony that he had not paid. 

The evidence at trial established that Raschella used a series of nominee entities and individuals to prevent the IRS from collecting his unpaid taxes through liens on his assets and levies on his income or bank accounts.  In 2001, Raschella attempted to assign his insurance commissions to American Financial, a company operated by Joseph Flickinger.  Flickinger was sentenced to prison after pleading guilty for his role in promoting a tax fraud scheme.  Raschella also paid Flickinger to prepare a false tax return for Raschella for the year 2000. 

In 2003, Raschella formed two companies, Resource One, Corporation and Legacy Foundation International.  Raschella deposited his insurance commissions into bank accounts in the name of these entities.  Raschella also purchased, leased and registered vehicles in the names of both Resource One and Legacy Foundation.  Raschella incorporated Resource One with the assistance of Carol Sing, who was sentenced to three years in prison in May 2015 after a jury convicted her of promoting a tax fraud scheme.  Raschella organized Legacy Foundation with the help of Nancy Lloyd, who was enjoined in December 2005 from promoting abusive tax fraud schemes.    

Raschella successfully assigned his insurance commission to Resource One in 2005, which resulted in the insurance company that he sold insurance for issuing a Form 1099-MISC to the company instead of to Raschella individually.  The insurance company revoked the assignment after learning that Raschella had made false statements to a county government agency regarding the fact that Resource One was his company.  Raschella also hired an individual in Texas who submitted a fraudulent levy release to the insurance company on his behalf.  This document was created to appear as if it was issued by the IRS, when, in fact, it was sent by the individual in Texas.  The fraudulent document resulted in the insurance company substantially reducing the amount of Raschella’s insurance commissions that it was paying over to the IRS in response to a levy.

“John Raschella willfully failed to pay more than $1 million in income taxes, interest and penalties,” said Principal Deputy Assistant Attorney General Ciraolo.  “The jury’s verdict makes clear that dishonest taxpayers who fail to file returns and pay their fair share of taxes cannot escape responsibility for their illegal conduct.”

“While no one looks forward to paying taxes, it is our obligation as citizens,” said U.S. Attorney Rendon. “The jury found this defendant willingly and fraudulently shirked his responsibility.”

“Convictions, like the one returned against Mr. Raschella today, send a clear message that those who willfully defy the tax laws will be fully investigated, prosecuted, and subjected to the full punishment of the law for their actions,” said Chief Richard Weber of IRS-Criminal Investigation.  “The overarching principle of IRS’s enforcement strategy is to protect the integrity of the tax system by ensuring everyone pays the right amount of tax.  The IRS and Department of Justice remain determined and vigilant in ferreting out such schemes to cheat the honest taxpayers.”

Raschella is the fourth insurance salesman to be convicted of tax crimes in the Northern District of Ohio in recent years.  In October 2012, William A. Herder was sentenced to 37 months in prison after a jury convicted him of tax evasion, corruptly endeavoring to impair and impede the IRS, and willful failure to file tax returns.  Herder’s son, William R. Herder was sentenced to 20 months in prison in January 2013 after pleading guilty to corruptly endeavoring to impair and impede the IRS and structuring currency transactions.  William A. Herder’s brother-in-law, Thomas Mitchell, was sentenced to probation in 2012 after pleading guilty to willful failure to file a tax return.  All four men utilized similar schemes to evade their responsibilities under the federal tax laws.   

U.S. District Judge Dan Aaron Polster set sentencing for April 13, 2017.  Raschella faces a statutory maximum sentence of one year in prison for each willful failure to pay and willful failure to file conviction. He also faces a period of supervised release, restitution and monetary penalties. 

Principal Deputy Assistant Attorney General Ciraolo, U.S. Attorney Rendon and Acting Special Agent in Charge Stemen thanked agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Jeffrey A. McLellan of the Tax Division, who prosecuted the case.  They also thanked Assistant U.S. Attorney Robert J. Patton of the Northern District of Ohio who provided substantial assistance in this prosecution.

Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.

A 21-count indictment was unsealed in which three Romanian nationals were charged for operating a cyber fraud conspiracy in which they infected 60,000 computers, sent out 11 million malicious emails and stole at least $4 million, said U.S. Attorney Carole S. Rendon and FBI Special Agent in Charge Stephen D. Anthony.

Bogdan Nicolescu, 34, Tiberiu Danet, 31, and Radu Miclaus, 34, were extradited to the United States this week after being taken into custody in their native Romania earlier this year. They are each charged with conspiracy to commit wire fraud, conspiracy to traffic in counterfeit service marks, aggravated identity theft, conspiracy to commit money laundering and 12 counts each of wire fraud.

“This case illustrates the sophistication and determination with which cyber criminals seek to harm Americans and American businesses from abroad,” said Assistant Attorney General Leslie R. Caldwell.  “But our response demonstrates that, with effective international cooperation, we can track these criminals down and make sure they face justice, no matter where or how they try to hide.”

“These defendants stole millions of dollars from people in the United States through a sophisticated fraud conspiracy they operated in Eastern Europe,” Rendon said. “Cybercrime is an ever-growing threat. We will continue to work with both our partners in law enforcement and in the private sector to evolve with the threat and protect our networks and national security.”

“This indictment and subsequent arrests reveal the dynamic landscape in which international criminals utilize sophisticated cyber methods to take advantage of and defraud, unsuspecting victims,” Anthony said. “Despite the complexity and global character of these investigations, these arrests demonstrate the commitment by the FBI and our partners to aggressively pursue these individuals and bring justice to the victims.” 

According to the indictment filed in U.S. District Court in the Northern District of Ohio:

Nicolescu, Danet and Miclaus collectively operated a criminal conspiracy from Bucharest, Romania. It began in 2007 with the development of proprietary malware, which they disseminated through malicious emails purporting to be legitimate from such entities as Western Union, Norton AntiVirus and the IRS. When recipients clicked on an attached file, the malware was surreptitiously installed onto their computer.

This malware harvested email addresses from the infected computer, such as from contact lists or email accounts, and then sent malicious emails to these harvested email addresses. The defendants infected and controlled more than 60,000 individual computers, primarily in the United States.

Controlling these computers allowed the defendants to harvest personal information, such as credit card information, user names and passwords. They disabled victims’ malware protection and blocked the victims’ access to websites associated with law enforcement.

Controlling the computers also allowed the defendants group to use the processing power of the computer to solve complex algorithms for the financial benefit of the group, a process known as cryptocurrency mining.

The defendants used stolen email credentials to copy a victim’s email contacts. They also activated files that forced infected computers to register email accounts with AOL. The defendants registered more than 100,000 email accounts using this method. They then sent malicious emails from these addresses to the compromised contact lists. Through this method, they sent more than 11 million malicious emails.

When victims with infected computers visited websites such as Facebook, PayPal, eBay or others, the defendants would intercept the request and redirect the computer to a nearly identical website they had created. The defendants would then steal account credentials. They used the stolen credit card information to fund their criminal infrastructure, including renting server space, registering domain names using fictitious identities and paying for Virtual Private Networks (VPNs) which further concealed their identities.

The defendants were also able to inject fake pages into legitimate websites, such as eBay, to make victims believe they were receiving and following instructions from legitimate websites, when they were actually following the instructions of the defendants.

They placed more than 1,000 fraudulent listings for automobiles, motorcycles and other high-priced goods on eBay and similar auction sites. Photos of the items were infected with malware, which redirected computers that clicked on the image to fictitious webpages designed by the defendants to resemble legitimate eBay pages.

These fictitious webpages prompted users to pay for their goods through a nonexistent “eBay Escrow Agent” who was simply a person hired by the defendants. Users paid for the goods to the fraudulent escrow agents, who in turn wired the money to others in Eastern Europe, who in turn gave it to the defendants. The payors/victims never received the items and never got their money back.

This resulted in a loss of at least $4 million.

The Bayrob group laundered this money by hiring “money transfer agents” and created fictitious companies with fraudulent websites designed to give the impression they were actual businesses engaged in legitimate financial transactions. Money stolen from victims was wired to these fraudulent companies and then in turn wired to Western Union or Money Gram offices in Romania. European “money mules” used fake identity documents to collect the money and deliver it to the defendants, according to the indictment

This case is being prosecuted by Assistant U.S. Attorneys Duncan T. Brown and Om Kakani and Brian Levine, Senior Counsel with the Justice Department’s Computer Crime and Intellectual Property Section. The case was investigated by the FBI, with assistance from the Romanian National Police.

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

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

A 21-count indictment was unsealed today charging three Romanian nationals for operating a cyber fraud conspiracy in which they infected between 60,000 and 160,000 computers, sent out 11 million malicious emails and stole at least $4 million.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division made the announcement.

Bogdan Nicolescu, 34, Tiberiu Danet, 31, and Radu Miclaus, 34, were extradited to the United States this week after being taken into custody in their native Romania earlier this year.  They were each charged with 12 counts of wire fraud, as well as one count each of conspiracy to commit wire fraud, conspiracy to traffic in counterfeit service marks, aggravated identity theft, conspiracy to commit money laundering and conspiracy to violate the Computer Fraud and Abuse Act.

“This case illustrates the sophistication and determination with which cyber criminals seek to harm Americans and American businesses from abroad,” said Assistant Attorney General Caldwell.  “But our response demonstrates that, with effective international cooperation, we can track these criminals down and make sure they face justice, no matter where or how they try to hide.”

“These defendants stole millions of dollars from people in the United States through a sophisticated fraud conspiracy they operated in Eastern Europe,” said U.S. Attorney Rendon.  “Cybercrime is an ever-growing threat.  We will continue to work with both our partners in law enforcement and in the private sector to evolve with the threat and protect our networks and national security.”

“This indictment and subsequent arrests reveal the dynamic landscape in which international criminals utilize sophisticated cyber methods to take advantage of and defraud unsuspecting victims,” said Special Agent in Charge Anthony.  “Despite the complexity and global character of these investigations, these arrests demonstrate the commitment by the FBI and our partners to aggressively pursue these individuals and bring justice to the victims.” 

According to the indictment, Nicolescu, Danet and Miclaus collectively operated a criminal conspiracy from Bucharest, Romania, which began at least as early 2007 with the development of proprietary malware used to infect and control more than 60,000 computers, primarily in the United States.  The co-conspirators allegedly used the computers to harvest personally identifiable information, such as credit card information, user names and passwords; disable malware protection; and solve complex algorithms to accrue valuable cryptocurrency for the financial benefit of the group, a process known as cryptocurrency mining.

To spread their malware, the defendants allegedly activated files that forced infected computers to register a total of over 100,000 email accounts with public email providers, according to the indictment.  The co-conspirators sent a total of more than 11 million emails containing the malware from these accounts to email contacts copied from victim computers.  When victims with infected computers visited websites such as Facebook, PayPal or eBay, the co-conspirators would redirect the computers to a nearly identical website they had created to steal account credentials.  The defendants then used stolen credit card information to fund their criminal infrastructure while concealing their identities.

In addition, the indictment alleges that the defendants placed more than 1,000 fraudulent listings for automobiles, motorcycles and other high-priced goods on eBay and similar auction websites.  Photos of the items were allegedly infected with malware, which, when clicked, redirected victims to fictitious webpages designed by the co-conspirators to resemble legitimate eBay pages.  The fictitious webpages prompted users to pay for their goods through a nonexistent “eBay Escrow Agent,” and payments would then be funneled back to the co-conspirators.  This scheme allegedly resulted in at least $4 million – though the actual total may be tens of millions more – in losses to victims, which the defendants laundered through wire transfers under the names of fictitious companies and then collected and delivered to the co-conspirators by “money mules.”

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

The FBI investigated the case with assistance from the Romanian National Police.  Senior Counsel Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Duncan T. Brown and Om Kakani of the Northern District of Ohio are prosecuting the case.  The Criminal Division’s Office of International Affairs provided substantial assistance in this matter.

A Willoughby man was indicted on child pornography charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Conor K. Ransom, 33, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.

Ransom knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct, from February 24, 2016 through on or about April 19, 2016, according to the indictment.  The indictment also charges that on or about April 19, 2016, Ransom possessed a computer which contained child pornography.

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

This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Painesville, Ohio and Plano, Texas, offices of the Federal Bureau of Investigation and the Plano Police Department. 

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

A Warren man was indicted on child pornography charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

David Hafely, 19, was charged with receiving, distributing, transporting and possessing visual depictions of minors engaged in sexually explicit conduct.

The indictment charges that from on or about November 22, 2015 through on or about January 4, 2016, Hafely knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. 

The indictment also charges that from on or about November 22, 2015 through on or about January 4, 2016, Hafely knowingly transported numerous visual depictions of real minors engaged in sexually explicit conduct.

The indictment also charges that on or about January 5, 2016, Hafely possessed a Kindle Fire HD Tablet, which contained child pornography.

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

This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Cleveland office of the Department of Homeland Security, Homeland Security Investigations and the Ohio Internet Crimes Against Children Task Force. 

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

A Pioneer man was charged with stealing firearms, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

A criminal information was filed charging Kyle Shirey, 34, with theft of a firearm from a firearms dealer and receipt and possession of a firearm not registered through the Bureau of Alcohol, Tobacco, Firearms and Explosives.  

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

The investigating agency in this case is the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Toledo, Ohio.  The case is being handled by Assistant United States Attorney Tracey Ballard Tangeman.

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

A Mexican national living in Canton was indicted on cocaine trafficking and immigration charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

A federal grand jury returned a five-count indictment charging Rodolfo Trejo, aka Rudy, 38, with distribution of cocaine, possession with intent to distribute cocaine, and illegal re-entry following deportation.

Counts 1 through 3 of the indictment allege that Trejo distributed cocaine on or about August 17, September 7 and September 22, 2016.

Count 4 of the indictment alleges that Trejo possessed with the intent to distribute cocaine on or about December 1, 2016.

Count 5 of the indictment alleges that Trejo, a citizen of Mexico and an alien, who after previously having been removed and deported from the United States in 2013, to Mexico, was found illegally back in the United States.

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

The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Department of Homeland Security, Immigration and Customs Enforcement and the Canton Police Department. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.

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

A Kent man convicted of domestic violence was charged with illegally having a firearm, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

A federal grand jury returned a one-count indictment charging Cecil J. Rotnem, 29, with possession of a firearm by a person convicted of misdemeanor domestic violence.

The indictment alleges Rotnem possessed a Mossberg, model 500A, 12 gauge shotgun on or about July 5, 2016 through July 11, 2016, despite having been previously convicted of a misdemeanor crime of domestic violence, in the Portage County Municipal Court, in 2009.

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

The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.

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

A Geneva man was indicted on child pornography charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Christopher W. Smith, 27, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.

The indictment charges that Smith knowingly received and distributed numerous computer files which containted visual depictions of real minors engaged in sexually explicit conduct. This took place from June 17 through November 15, 2016.  The indictment also charges that on or about November 15, 2016, Smith possessed an HTC cellphone and an RCA Tablet, each of which contained child pornography.

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

This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation the Cleveland and London offices of the Department of Homeland Security, Homeland Security Investigations. 

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

A Toledo man was sentenced to 30 years in prison for his involvement in conspiracy to possess with intent to distribute a kilogram of heroin, said U.S. Attorney Carole S. Rendon.

Lee T. Turner, 31, was found guilty earlier this year of one count of conspiracy to possess with intent to distribute at least one kilogram of heroin and one count of being a felon in possession of a firearm.

U.S. District Judge James Carr also fined Turner $200,000 and ordered him to forfeit a house, firearms, cash, jewelry and other items.

“We will continue to aggressively go after those who bring heroin into our community and who are forbidden from carrying firearms but do so anyway,” Rendon said. “Our state is in the midst of an opioid epidemic and we all must work together – through prevention, treatment, education and yes, enforcement, to turn the tide.”

Turner conspired to with others from November 2013 through Nov. 20, 2014 to possess heroin. Turner used 2830 Powhattan Parkway and 707 Phillips Avenue, both in Toledo, for the unlawful purpose of storing and distributing heroin, according court documents.

On Nov. 20, 2014, Turner possessed approximately 1,077 grams of heroin and a 9 mm pistol, despite previous convictions for bank robbery, robbery, kidnapping and other felony convictions, according to court documents.

The case was being prosecuted by Assistant U.S. Attorneys Alyssa Sterling and James Morford following an investigation by the Toledo Metro Drug Task Force, which is made up of representatives from the Toledo Police Department, Federal Bureau of Investigation, Lucas County Sheriff’s Office and other law enforcement agencies.

Two New York City men were indicted for having a kilogram of fentanyl, said U.S. Attorney Carole S. Rendon and DEA Special Agent in Charge Timothy J. Plancon.

Hector Lebron, 43, and Alberto Marcial-Santos, 35, were each indicted on one count of possession with the intent to distribute a kilogram of fentanyl.

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

The investigating agency in this case is the Drug Enforcement Administration, with assistance from the Ohio State Highway Patrol. The case is being handled by Assistant United States Attorney Michael J. Freeman.            

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

A Toledo man was indicted for having more than 11 pounds of cocaine, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Leroy L. Hooker, 47, was indicted on one count of possession with intent to distribute more than five kilograms of cocaine.

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

The investigating agency in this case is the Federal Bureau of Investigation in Toledo.  The case is being handled by Assistant United States Attorneys Thomas P. Weldon and Alissa M. Sterling.  

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

Three people were sentenced to prison for their roles in a $3 million conspiracy involving a home health service company with offices in Cleveland to defraud government insurance programs by billing for services not provided, law enforcement officials said.

George Epps, 43, of Cleveland, was sentenced to 46 months in prison.

Abdulazis Warsame, 51, of Cleveland, was sentenced to 37 months in prison.

Amir Ahmed, 51, of Columbus, was sentenced to 27 months in prison.

All three worked for Lifeline Home Health Services, which was incorporated in 2006 and had an office at 12200 Fairhill Road in Cleveland.

The defendants and others conspired between 2009 to 2013 to defraud Medicaid by submitting false documentation to become an accredited home healthcare provider, forging documents to make it appear doctors had approved specific plans of care, fabricating and billing for home health visits that had not taken place. Ahmed also recruited patients by offering cash kickbacks in exchange for becoming patients of Lifeline, according to court documents.

Collectively, they received payment for more than $3 million in fraudulent claims, according to court documents.

“These defendants stole millions of dollars from the public,” U.S. Attorney Carole S. Rendon said. “They have earned their time in prison. We will continue to work collaboratively to protect taxpayers and programs receiving federal dollars.”

“The sentencing of these defendants should send a message to illegitimate providers of home health services that the OIG and our law enforcement partners are actively engaged in identifying, exposing, and holding accountable those who choose to attack the Medicaid and Medicare programs,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to dedicate resources to combat fraud in the area of home health services to protect those patients who truly need these services, and to preserve vital taxpayer dollars.”

“These defendants orchestrated a multi-million dollar conspiracy to defraud Ohio Medicaid and live off of taxpayer dollars that they were never entitled to receive,” said Attorney General Mike DeWine.  “Their conduct was egregious, and it is something that authorities with my office are trained to identify, investigate, and prosecute.  I’m pleased that prison time and restitution was ordered in this case because this behavior will not be tolerated in Ohio.”

This case was prosecuted by Assistant U.S. Attorney Michael L. Collyer following an investigation by the Department of Health and Human Service’s Office of Inspector General, the FBI and the Ohio Attorney General’s Medicaid Fraud Control Unit.

 

A longtime fugitive was sentenced to more than four years in prison for stealing $3.2 million through food stamp fraud more than two decades ago, U.S. Attorney Carole S. Rendon said.

Najeh Ottallah, 54, formerly of Lakewood, was sentenced to 54 months in prison. U.S. District Court Judge Donald Nugent also ordered Ottallah to pay $3.2 million in restitution to the Department of Agriculture, which administers the food stamp program, and $35,576 to the Internal Revenue Service.

Ottallah pleaded guilty in 1994 to food stamp fraud and tax charges. He did not appear for his sentencing and was a fugitive until this year, when he was arrested in Jerusalem.

"This defendant ripped off taxpayers by abusing a program designed to help our most destitute," Rendon said. "He fled the country for more than two decades and the sentence he receivfed today reflects those actions."

"More than 20 years passed since Mr. Ottallah pleaded guilty for his role in what was, at the time, one of the first investigations of a massive food stamp fraud scheme in Northern Ohio," said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "Today's sentence is a direct result of the collaborative efforts of the IRS, U.S. Department of Agriculture, Office of Inspector General, U.S. Department of Homeland Security, Immigration and Customs Enforcement, and the U.S. Attorney's Office has in combating violations of federal law."

 

This case was prosecuted by Assistant U.S. Attorney Karrie D. Howard following an investigation by the IRS and U.S. Department of Agriculture, with assistance from the U.S. Marshal Service.

 

 

A Warrensville Heights man was convicted of engaging in the straw purchase of a firearm, said Carole Rendon, U.S. Attorney for the Northern District of Ohio.

Malcolm Roberson, 26, was found guilty by a jury of engaging in a straw purchase of a Jimenez Arms 9 mm pistol on Feb. 20 at Taylor Firearms LLC in Vermillion when Chimere Turner said she was  the buyer of the firearms when Roberson was the actual buyer of the firearm. The jury also convicted Roberson of being a felon in possession of a firearm, for having the 9 mm pistol despite a 2011 conviction for assault.

Turner, 32,  of Cleveland, previously pleaded guilty to making a false statement during the purchase of a firearm.

This case is being prosecuted by Assistant U.S. Attorney Benedict Gullo following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.

A federal grand jury indicted Jesse M. Smith, 38, of Quaker City, Ohio, today for obstructing the proceedings of a federal grand jury and threatening two federal agents, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

The indictment alleges in the first count that Smith obstructed the proceedings of a federal grand jury in Cleveland, Ohio, by producing false and misleading documents in response to a subpoena.  The second count of the indictment alleges that Smith threatened to harm a special agent of the United States Department of Agriculture on September 19, 2016.  The last count of the indictment alleges that Smith threatened to shoot a different special agent of the USDA four days later on September 23, 2016.

The USDA Office of Inspector General conducted the investigation along with the FBI.  The case is being prosecuted by Assistant United States Attorneys Duncan T. Brown and Brad J. Beeson.

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

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

A federal Grand Jury returned an indictment charging Raymond Castaneda, 43, a Mexican citizen, with unlawfully re-entering the United States and failing to register as a sex offender, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio. 

Castaneda, who in 1994 was convicted of Indecency with a Child in Henderson County, Texas and deported to Mexico in 2008, was found in Painesville, according to the indictment. 

Assistant United States Attorney Karrie D. Howard is prosecuting the case following an investigation by the U.S. Marshals Service.

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

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

Matthew Ungashick, 39, of Canton, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.

The indictment charges that on or about July 25, 2016, Ungashick knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. The indictment also charges that on or about November 3, 2016, Ungashick possessed a two external computer hard drives and numerous computer disks, each of which contained child pornography.

If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation.  In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum. This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. 

The case was investigated by the Canton office of the Federal Bureau of Investigation and the Canton Police Department.  An indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

A federal grand jury returned a four-count indictment charging Rashad Mathews, 28, of Youngstown, with drug trafficking and  firearms violations, U.S Attorney Carole S. Rendon said.

Mathews possessed a Ruger, model 10/22, .22 caliber rifle and ammunition on April 15, 2015. On Dec. 1, 2015, Mathews possessed a Norinco, model 213, 9mm pistol; a Kahr Arms, model CW9, 9mm pistol; a Raven Arms, model MP-25, .25 caliber pistol; and a Raven Arms, model P-25, .25 caliber pistol. He had these firearms despite a 2007 felony conviction in Mahoning County Common Pleas Court in 2007, according to the indictment.

Mathews distributed marijuana on June 4, 201 and on December 1, 2015, he possessed with the intent to distribute marijuana, according to the indictment.

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

The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.   The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.

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.

 

An East Liverpool man was sentenced to six years in prison for child pornography violations, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.

Donald Guthrie, Jr., 56, of East Liverpool, was found guilty earlier this year of receipt and distribution of visual depictions of real minors engaged in sexually explicit conduct.

Guthrie received numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between June and August 2014, according to court documents.

This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik.  The case was investigated by the Department of Homeland Security, Cleveland Office.

Two people were indicted by a federal grand jury for their roles in a nearly $600,000 financial fraud, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office

Andrea M. Trgovcich, 50, of Youngstown, and Bertrand J. Gray, aka Bert Gray, 52, of Cleveland, were indicted on charges of securities fraud and bank fraud.

Trgovcich is charged with inducing the investment of $578,859 in a business venture known as Wellness Integrated Network LLC (WIN). WIN was intended to develop and market a software application that would integrate diet, fitness, exercise routines, health monitoring, etc., to business employee wellness plans and insurance companies, according to the indictment.

Investors were promised that their money would be used to develop and market the software product.  Trgovcich is alleged to have diverted much of the money to personal use.  No software application was ever developed or marketed. Gray joined WIN as chief financial officer in 2012, and is alleged to have raised investor funds through the use of false documents and statements, according to the indictment. 

Trgovcich is also charged with six counts of bank fraud for withdrawing investor funds from federally-insured banks under false pretenses, according to the indictment.    

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

The investigating agency in this case is the Youngstown Resident Agency of the Federal Bureau of Investigation. The case was presented by Assistant U.S. Attorneys James V. Moroney and Carmen Henderson.         

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

Three Mahoning County men face federal firearms charges, U.S Attorney Carole S. Rendon said.

Indicted are: James M. Simmons, 32, of Youngstown, Ricky Paige, 30, of Boardman, and Michael Williams, 32, of Youngstown. Their cases are not related.

Simmons possessed a Ruger, model P95, 9mm pistol, on Feb. 3, 2016, after having been previously convicted of burglary, possession of cocaine, and failure to comply with order or signal of police officer, all in the Mahoning County Court of Common Pleas, according to the indictment

Paige possessed a Norinco, model SKS, 7.62mm rifle on Dec. 15, 2015 and a Ruger, model P95, 9mm pistol on March 24, 2016, despite previous convictions for robbery, aggravated robbery and burglary in Mahoning County Court of Common Pleas, according to the indictment.

Williams is charged possessing with the intent to distribute narcotics and being a felon in possession of a firearm.

Williams possessed with the intent to distribute cocaine, crack cocaine, heroin, tramadol, alprazolam and clonazepam on or about July 1, 2016, according to the indictment.

He also possessed a Norinco, model MAK 90 Sporter, 7.62mm rifle, on July 7, 2016, despite previous convictions for aggravated assault and cocaine trafficking in the Summit County Court of Common Pleas, according to the indictment.

All three cases are being prosecuted by Assistant U.S. Attorney David M. Toepfer following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mahoning Valley Law Enforcement Task Force.

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

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

A five-count indictment was filed in federal court charging a Summit County man for illegally possessing firearms and nearly 80 pounds of cocaine, law enforcement officials said

Jerry J. Davis, Jr., 35, of New Franklin, was indicted on two counts of possession with the intent to distribute cocaine, two counts of possession of a firearm in furtherance of a drug trafficking offense and one count of being felon in possession of a firearm.  

Ohio State Highway Patrol troopers and officers from Akron Police Department executed a traffic stop of Davis in Akron on Nov. 1. Davis initially stopped but then drove away, leading the officers on a high-speed chase. Davis crashed his car into a light pole and then ran from officers. He was arrested after he jumped from a bridge, falling 30 feet to the ground, according to court documents.

Officers recovered nearly 11 kilograms of cocaine and a loaded Glock .40-caliber handgun from Davis’s vehicle, according to court documents.

Later that day, investigators from the Summit County Drug Unit, Akron Police Department, DEA and FBI executed a search warrant on Davis, Jr.’s house in New Franklin. They recovered approximately 25 kilograms of cocaine, a Glock .40 model 30 handgun, a Springfield .45-caliber handgun, ammunition and approximately $67,658 in cash, according to court documents. 

Davis is forbidden by law from having a firearm because of numerous felony convictions, including for sexual battery, heroin possession and other crimes, according to court documents.

“This investigation is a great example of law enforcement working together to get drugs and guns off the streets,” said U.S. Attorney Carole S. Rendon.

“Our working relationships with our state, local and federal partners continue to benefit the City of Akron in successes such as this,” said Akron Police Chief James Nice.

“The seizure of 36 kilograms is significant and is an indication that cocaine abuse continues to plague society,” said Timothy Plancon, Special Agent in Charge of DEA’s Detroit Office, which oversees Ohio. “Halting the activities of a large-scale, gun-toting, cocaine trafficker is a victory for the citizens of Akron and the surrounding communities, and was achieved thanks to the significant communication and cooperation of all of the local, state and federal law enforcement agencies involved.”

This investigation was conducted by the Akron Police Department Narcotics Unit and the DEA, along with the Ohio State Highway Patrol and the FBI. The case is being prosecuted by Assistant U.S. Attorney Aaron P. Howell.          

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 each defendant’s guilt beyond a reasonable doubt.

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

Today, new Crisis Intervention Team (CIT) policies developed by the Cleveland Division of Police in cooperation with the Consent Decree Monitoring Team, the Department of Justice, the Mental Health Response Advisory Committee which work with the Alcohol, Drug Addiction and Mental Health Services (ADAMHS) Board of Cuyahoga County and the United States Attorney’s Office were released for public comment and feedback.  Mayor Frank G. Jackson and Chief of Police Calvin D. Williams welcome and encourage the public to participate in this feedback process prior to submitting the policies to Judge Oliver Solomon for filing. 

“The Crisis Intervention Team Policies are a major component for the City in implementing the Consent Decree,” said Mayor Frank G. Jackson. “These new policies will continue to create the conditions that foster positive interactions between our police and the communities they serve.”

“These policies are the result of collaborative efforts and reflect national best practices,” said U.S. Attorney Carole S. Rendon. “They will ensure that our most vulnerable citizens get the help they need. We welcome the public’s input as we continue our ongoing reform efforts.”

“The Cleveland Division of Police and the community led Mental Health Response Advisory Committee have produced a crisis intervention policy that will serve as a model for other cities,” said Monitoring Team member and crisis intervention expert Dr. Randolph Dupont.  “Cleveland has a right to be proud of this work.”

“The Cleveland Division of Police is committed to ensuring that the policies set in place for our officers reflect best practice along with safe tactics.” said Chief Calvin D. Williams.  “The revision of the Crisis Intervention Team order is yet another step toward making sure that we are providing optimum service to the citizens we are proud to serve each day.”

“These Crisis Intervention Team policies solidify our community’s goal of making Cleveland a city where everyone – including people living with mental illness and addiction - is treated safely with dignity and respect,” stated William M. Denihan, CEO of the ADAMHS Board of Cuyahoga County.

 

“Today, another milestone in the Consent Decree compliance process has been reached,” said Consent Decree Implementation Coordinator, Gregory A. White. “This was another outstanding collaborative effort between the Cleveland Division of Police, the Mental Health Response Advisory Committee, the monitoring team, the Department of Justice and the United States Attorney’s Office.  Special recognition should also go to the Policy Sub-Committee of the Mental Health Response Advisory Committee, chaired by Common Pleas Judge Hollie L. Gallagher and Gabriella Celeste, Director of Child Policy at Case Western Reserve University Center for Child Studies.   Final public comment is now welcome prior to the policies being filed for approval under the Consent Decree.”

A public meeting to discuss the proposed policies will be held on December 13, 2016 at two locations and at separate times.

• The first public meeting is December 13th, 1:00 p.m. at the Murtis Taylor Human Services System, 13422 Kinsman Road, Cleveland, Ohio 44120
• The second public meeting is December 13th, 6:00 p.m. at the Urban Community School, 4909 Lorain Avenue, Cleveland, Ohio 44102

View the proposed policies and provide feedback here: http://www.clevelandpolicemonitor.net/crisis-intervention

An Akron man was indicted in federal court for sexually exploiting a 14-year-old, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.

Benny T. Hunt, 40, was charged with enticement, sexual exploitation of a child and distributing visual depictions of a minor engaged in sexually explicit conduct.

Hunt knowingly used a cellular phone with Internet connectivity to persuade, induce, entice, and coerce a 14-year-old girl, to engage in sexual activity for which Hunt could be charged with a criminal offense. This took place between June and August, according to the indictment.

Hunt used, persuaded, enticed and coerced a minor to engage in sexually explicit conduct, as defined in Title 18, United States Code, Section 2256(2), for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced using materials that had been mailed, shipped and transported in and affecting interstate and foreign commerce, and such visual depiction was actually transported and transmitted, using any means and facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce, according to the indictment

He also knowingly distributed, using any means and facility of interstate and foreign commerce, visual depictions of a 14-year-old girl engaged in sexually explicit conduct, according to the indictment.

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

This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan.  The case was investigated by the Youngstown office of the Federal Bureau of Investigation, the Ohio Attorney General’s Office Bureau of Criminal Investigation and the Girard Police Department.  

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.

Robert Paschalis, 25, of Toledo, pleaded guilty today to a federal hate crime for beating an African-American stranger he saw on the street.  Paschalis’s co-defendant, Charles Butler, pleaded guilty to the same crime on Nov. 9.

The plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division. 

According to his guilty plea, on May 18, 2016, Paschalis and Butler drove past the victim, A.W., on the street while A.W. was unloading items from his truck.  The two men circled back, got out of their own truck and began attacking A.W. while yelling racial slurs.  Butler grabbed a broom from the back of A.W.’s truck and struck A.W. with it multiple times.  Paschalis admitted during his plea that the beating occurred because A.W. is African American. 

The beating stopped only when two off-duty Ohio state police officers happened on the scene and pulled Butler and Paschalis away.  A.W. suffered an orbital fracture and damage to his right eye.  Butler later posted on Facebook that the attack was “in the name of the White Race.”

“Hate violence harms individuals and threatens the diversity of entire communities,” said Principal Deputy Assistant Attorney General Gupta.  “This vicious attack on an African-American man simply going about the routines of daily life offends human decency.  We cannot undo the harms inflicted, but these convictions help vindicate everyone’s right to live free from racial violence.” 

“Northern Ohio is a mosaic of different races, ethnicities and backgrounds,” said U.S. Attorney Rendon.  “This defendant tried to strike at the diversity we cherish by participating in an unprovoked attack based solely on the victim’s race.  He is now likely headed to prison, while we will continue to work together to ensure that everyone’s civil rights are protected.”

“These individuals engaged in a violent assault against another person based on his race and are now being held accountable,” said Special Agent in Charge Anthony.  “The FBI will continue to work with our law enforcement partners to ensure hate crimes are thoroughly investigated and prosecuted to the greatest extent of the law.”

This case is being investigated by the FBI Cleveland Division’s Toledo Resident Agency, in cooperation with the Toledo Police Department and the Lucas County, Ohio, Prosecutor’s Office.  The case is being prosecuted by Assistant U.S. Attorney Michael Freeman of the Northern District of Ohio and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.

Robert Paschalis, 25, of Toledo, Ohio, pleaded guilty today to a federal hate crime for beating an African-American stranger he saw on the street.  Paschalis’s co-defendant, Charles Butler, pleaded guilty to the same crime on Nov. 9.

The plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.

According to his guilty plea, on May 18, 2016, Paschalis and Butler drove past the victim, A.W., on the street while A.W. was unloading items from his truck.  The two men circled back, got out of their own truck and began attacking A.W. while yelling racial slurs.  Butler grabbed a broom from the back of A.W.’s truck and struck A.W. with it multiple times.  Paschalis admitted during his plea that the beating occurred because A.W. is African American.

The beating stopped only when two off-duty Ohio state police officers happened on the scene and pulled Butler and Paschalis away.  A.W. suffered an orbital fracture and damage to his right eye.  Butler later posted on Facebook that the attack was “in the name of the White Race.”

“Hate violence harms individuals and threatens the diversity of entire communities,” said Principal Deputy Assistant Attorney General Gupta.  “This vicious attack on an African-American man simply going about the routines of daily life offends human decency.  We cannot undo the harms inflicted, but these convictions help vindicate everyone’s right to live free from racial violence.”

“Northern Ohio is a mosaic of different races, ethnicities and backgrounds,” said U.S. Attorney Rendon.  “This defendant tried to strike at the diversity we cherish by participating in an unprovoked attack based solely on the victim’s race.  He is now likely headed to prison, while we will continue to work together to ensure that everyone’s civil rights are protected.”

“These individuals engaged in a violent assault against another person based on his race and are now being held accountable,” said Special Agent in Charge Anthony.  “The FBI will continue to work with our law enforcement partners to ensure hate crimes are thoroughly investigated and prosecuted to the greatest extent of the law.”                   

This case is being investigated by the FBI Cleveland Division’s Toledo Resident Agency, in cooperation with the Toledo Police Department and the Lucas County, Ohio, Prosecutor’s Office.  The case is being prosecuted by Assistant U.S. Attorney Michael Freeman of the Northern District of Ohio and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.

Three Toledo residents were convicted for forging a will to fraudulently gain control of an estate worth approximately $2.2 million, said U.S. Attorney Carole S. Rendon and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

Susan M. Pioch, 60, Margaret L. McKnight, 42, and Kurt L. Mallory, 53 are convicted on all counts following a weeklong jury trial.

All three were convicted one count of conspiracy to commit bank fraud and mail fraud, 21 counts of bank fraud, seven counts of mail fraud and one count of aggravated identity theft. Pioch, McKnight and Mallory were convicted on additional counts of money laundering. McKnight was convicted on an additional count of structuring cash withdrawals, three tax counts and seven counts of causing a financial institution to fail to file a required report.

“This trio forged a will and stole a lifetime of savings and hard work,” Rendon said. “They will finally be held accountable for their actions. It’s particularly egregious that an attorney, who has sworn an oath to uphold our laws, was involved in these crimes.”

“The defendants engaged in a scheme to steal millions from a deceased man’s family, proving that money is the root of all evil,” Enstrom said. “It was imperative to make sure no corners were cut and no stone was left unturned. The IRS National Forensic Laboratory played a critical role in this investigation by examining the handwriting on numerous documents that ultimately proved that the will in question in this case was forged. Today’s convictions are a direct result of the excellent partnership of the IRS, U.S. Attorney’s Office and the Toledo Police Department.”

Martin E. Fewlas executed a will in 1993 devising his entire estate to his brother. If his brother did not survive Fewlas, the estate was to go to his nephew and then his great-nephew, identified in the indictment as JRM.

Fewlas owned the duplex located at 2557 Broadway Street in Toledo. He lived in the lower half and for approximately 10 years, McKnight and Mallory lived together in the upper half, according to court documents.

Fewlas died on Aug. 28, 2010, leaving an estate worth approximately $2.2 million. On Sept. 2, 2010, McKnight, Mallory and Pioch – an attorney who had previously done legal work for McKnight and Mallory forged a will in Fewlas’ name. The forged will was drafted by Pioch and named McKnight as the executor and sole devisee of Fewlas’ assets. Pioch filed the forged will with the Lucas County Probate Court on or around Sept. 2, 2010. McKnight identified herself as executor of the estate and Pioch identified herself as attorney for the executor in probate court documents, according to court documents.

By filing the forged will and concealing its fraudulent nature, Pioch, McKnight and Mallory succeeded in obtaining Probate Court authority to take possession of Fewlas’ assets. After obtaining those assets, they disbursed the assets to themselves for their own enrichment, according to court documents.

Pioch, McKnight and Mallory used those assets to purchase, among other things, a used car dealership, a 2000 Discovery motorhome for $55,036, a classic 1972 Chevrolet El Camino for $17,000, a 2010 Kia Soul SUV for $21,338, as well as property. They also withdrew more than $500,000 in cash for Fewlas’ estate proceeds, according to court documents.

JRM, Fewlas’ great nephew and the sole remaining devisee from the 1993 will, received nothing, according to court documents.

The case is being prosecuted by Assistant U.S. Attorneys Gene Crawford and Noah Hood following an investigation by the Internal Revenue Service – Criminal Investigations and the Toledo Police Department.

 

A psychiatrist from Oregon, Ohio, was sentenced to serve 18 months in prison for tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, U.S. Attorney Carole S. Rendon for the Northern District of Ohio, and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. 

According to court records, from as early as 2005, Sandra Vonderembse failed to pay taxes and filed and caused to be filed with the Internal Revenue Service false and fraudulent tax returns that included false statements regarding her income and the amount of tax due and owing.  Additionally, from 2009 through 2011, Vonderembse falsely claimed to have no taxable income and to owe no taxes, despite earning more than $240,000 each year while working as a psychiatrist.  Vonderembse used nominee entities to conceal income from the IRS, and sent fake financial instruments to the IRS in purported payment of her taxes.  In total, from 2005 through 2011, she attempted to evade more than $360,000 in income tax liabilities.

“Tax evasion is not a victimless crime,” Enstrom said. “We all pay when others swindle the government.  Tax evasion and tax fraud of this magnitude and with this degree of trickery, dishonesty and deceit, deserves to be punished.  The IRS and Department of Justice remain determined and vigilant in ferreting out such schemes to cheat the honest taxpayers.”

In addition to the prison term imposed, Vonderembse was ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $565,128. 

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rendon commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Noah Hood and Trial Attorneys Jack Morgan and Jeffrey McLellan of the Tax Division, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.

An Oregon, Ohio psychiatrist was sentenced today to serve 18 months in prison in the U.S. District Court for the Northern District of Ohio for tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Carole S. Rendon for the Northern District of Ohio. 

According to court records, from as early as 2005, Sandra Vonderembse failed to pay taxes and filed and caused to be filed with the Internal Revenue Service (IRS) false and fraudulent tax returns that included false statements regarding her income and the amount of tax due and owing.  Additionally, from 2009 through 2011, Vonderembse falsely claimed to have no taxable income and to owe no taxes, despite earning more than $240,000 each year while working as a psychiatrist.  Vonderembse used nominee entities to conceal income from the IRS, and sent fake financial instruments to the IRS in purported payment of her taxes.  In total, from 2005 through 2011, she attempted to evade more than $360,000 in income tax liabilities.

In addition to the prison term imposed, Vonderembse was ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $565,128.63. 

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rendon commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Noah Hood and Trial Attorneys Jack Morgan and Jeffrey McLellan of the Tax Division, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.

 

A Euclid man was sentenced to 10 years in prison for having more than 900 pills of fentanyl, crack cocaine and a firearm, said Acting U.S. Attorney Carole Rendon.

Ryan Gaston, 30, was previously found guilty to possession with intent to distribute fentanyl, possession with intent to distribute crack cocaine, and possession of a firearm in furtherance of drug trafficking.

Gaston was arrested on Feb. 3 in Cleveland Heights. A search of his car, and subsequent search of his apartment, revealed rocks of crack cocaine, a 9 mm High Point rifle and approximately 925 round blue pills believed to be Oxycodone 30 mg pills.

A test revealed the pills were not Oxycodone, but instead fentanyl, according to court documents.

Fentanyl is a very potent synthetic opiate used to treat pain and as a surgical anesthetic. While heroin is approximately three times as potent as morphine, fentanyl is approximately 80-100 times more powerful than morphine, according to court documents.

“Each one of these pills is an overdose waiting to happen,” said Acting U.S. Attorney Carole Rendon. “This sentence demonstrates the seriousness of dealing these drugs. We will continue to attack the opioid problem from all sides – prevention, education, treatment and enforcement.”

This case is being prosecuted by Assistant U.S. Attorney Michelle Baeppler following an investigation by the Drug Enforcement Administration, the Cleveland Heights Police Department, the Cuyahoga County Sheriff’s Office and the Euclid Police Department.

 

 

A  North Canton was sentenced to more than three years in prison for his role in a $1.5 million fraud scheme, said U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.

James W. Wallace was found guilty earlier this year of conspiracy to commit wire fraud and bankruptcy fraud. U.S. District Judge Benita Pearson sentenced Wallace to 41 months in prison and ordered him to pay approximately $900,000 in restitution.

Wallace, acting with others, engaged in a scheme to defraud at least 15 small business owners of at least $1.5 million through an investment and loan scam. This took place between 2009 and 2012, according to court documents.

Wallace, acting through his companies Wallace Financial and Washington Integrity, fraudulently induced individuals to purchase “aged shelf corporations,” which served no legitimate business purpose other than to funnel money back to Wallace for his personal use. Wallace told potential buyers, who were individuals who often could not get funding from traditional financial institutions, that they could get them loans substantially greater than any available to them from commercial institutions through the purchase of an “aged shelf corporation” through Wallace Financial and Washington Integrity. 

Aged shelf corporations were corporations that had been created some years before, but had never engaged in any business and were corporations on paper only. Wallace induced the would-be borrowers to believe that with the purchase of these previously created but dormant corporations they would qualify for private loans, credit cards with high credit limits, and other credit opportunities in amounts greater than were otherwise available to them from financial institutions. Wallace misinformed buyers by telling them that they had private lenders waiting to lend money to the owners of these aged shelf corporations when he knew that no such private lenders existed. Wallace  also falsely told would-be borrowers that other individuals had successfully obtained funding, but shrouded the details of their prior "successes” as well as the identities of their “private lenders” under a veil of mystery, citing proprietary and trade secrets, when no customers in fact received any private funding, according to court documents.         

Wallace also fraudulently misrepresented that the money customers paid to Wallace Financial and Washington Integrity for aged shelf corporations was used to obtain trade references, gain high PAYDEX scores (credit scores for corporations), and effect private placement of the loans. Wallace falsely told customers that their profit in the transaction would come later, after loans had been funded, from a percentage of the loans they succeeded in acquiring. Instead, Wallace used a substantial share of the money to pay for personal expenses including strip clubs, jewelry, tattoo salons, meals at restaurants and bars, vacations and resort hotels, testosterone supplements, luxury products, sports equipment, tanning salons, payments on personal loans and mortgages, cash withdrawals, and transfers to personal accounts, according to court documents.

Wallace also filed a false bankruptcy petition in the Northern District of Ohio. This took place after FBI agents executed a search warrant related to the case, and after former Wallace Financial and Washington Integrity customers filed lawsuits against him. Wallace falsely withheld information regarding his involvement with Washington Integrity; the number and amounts of creditors and debts owed by Wallace and his companies, bank accounts he possessed, his interests in executory contracts in the forms of the aged shelf corporation agreements he held with customers of Wallace Financial and Washington Integrity, and by falsely claiming a negative gross income for the two years preceding his bankruptcy filing, according to court documents

This case is being prosecuted by Assistant U.S. Attorney Om Kakani, following an investigation by the Federal Bureau of Investigation.

 

An Elyria man was sentenced to more than nine years in prison for trafficking cocaine, U.S. Attorney Carole S. Rendon said.

 

Ronnie Wright, Jr. was sentenced to 110 months in prison. He was found guilty earlier this year of possession with intent to distribute cocaine.

 

Wright was arrested last year after he fled from a traffic stop along Interstate 71. Wright reached speeds of more than 90 mph before crashing. Wright ran from the crash site but was eventually arrested. Officers found a total of seven vacuum-sealed bricks of cocaine in the area, according to court documents.

 

This case was prosecuted by Assistant U.S. Attorneys Vasile Katsaros and Phillip J. Tripi following an investigation by the DEA and Ohio State Highway Patrol.

 

A Cleveland man was sentenced to more than six years in prison for trafficking fentanyl, heroin and cocaine, law enforcement officials said.

Roland M. Smith, 43, was found guilty earlier this year of conspiring to distribute at least 40 grams of fentanyl, 100 grams of heroin and 500 grams of cocaine.

This case is being prosecuted by Assistant U.S. Attorney Joseph M. Pinjuh following an investigation by the Northern Ohio Law Enforcement Task Force.

 

A California man was indicted for trafficking methamphetamine and heroin, U.S. Attorney Carole S. Rendon said.

Randolph Harris, 37, of Sacramento, was indicted on one count each of conspiracy to possess with intent to distribute methamphetamine and conspiracy to possess with intent to distribute heroin.

Harris mailed more than two kilograms of methamphetamine from California to Akron on Nov. 12. He also mailed more than 100 grams of heroin to Akron last month, according to the indictment.

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

This case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the U.S. Postal Inspection Service.

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

A Fairview Park man was charged in federal court for making threats against President-Elect Donald Trump, said U.S. Attorney Carole S. Rendon and Craig Wisniewski, Special Agent in Charge of the Secret Service’s Cleveland office.

Zachary Benson, 24, posted threats on his Twitter account around 1 a.m. on November 9, including: “My life goal is to assassinate Trump. Don’t care if I serve infinite sentences. That man deserves to decease existing,” according to an affidavit filed in the case.

Benson later admitted to making the threats after watching election returns. He said he had no intentions related to the posts and was frustrated about the President-Elect’s policies, according to the affidavit.

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

This case is being prosecuted by Assistant U.S. Attorney Karrie Howard following an investigation by the U.S. Secret Service.

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

A Youngstown man was sentenced to 10 years in prison for being a felon in possession of a firearm, said U.S. Attorney Carole S. Rendon and ATF Special Agent in Charge Trevor Velinor.

Arian O'Connor, 39, also known as Noble Bullhorn Sirius O’Connor Bay, possessed a Maddi Company, Model Arm, 7.62 rifle on or about August 12, 2015, O’Connor, despite prior convictions for felonoius assault and two convictions for being a felon in possession of a firearm, according court documents.     

These cases are being prosecuted by Assistant U.S. Attorney David M. Toepfer following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Youngstown Police Department and the U.S. Probation Office.  

A Logan man was sentenced to nearly two years in prison for stealing more than $350,000 from investors through a fraudulent horseracing venture and using the money to buy expensive clothes, vehicles and pay for gambling expenses, law enforcement officials said.

Jonathan Pippin, 30, was sentenced to 21 months in prison and ordered to pay $358,370 in restitution.

He previously pleaded guilty to two counts of wire fraud and one count of money laundering.

Pippin created PJH Horse Racing, Inc. in 2011. The company was headquartered in Cleveland and purported to be in the business of purchasing race horses. Pippin had sole control over the company and its various bank accounts, according to court documents.

Pippin solicited investors to his company under false pretenses. He told potential investors that they were investing in a venture with a wealthy businessman and widely-known horse racing figure – identified in the charges only as M.R. – when in reality Pippin did not know M.R.

Pippin falsely represented to investors that they would receive a percentage of the winnings of M.R.’s horses when he knew it was not true. He also told investors that he had stud rights to M.R.’s horses when he did not, according to court documents.

Pippin used the investors’ money to enrich himself and pay personal expenses, such as the purchase of a Cadillac Escalade, tickets to sporting events, gambling expenses, rent and expensive clothing. Four investors lost a combined $358,370, according to court documents.

“This defendant created a web of lies to pay for fancy cars, expensive clothes and gambling expenses,” Rendon said. “He defrauded investors to pay for a lifestyle he couldn’t afford. Now he’ll be held accountable for his actions.”

"When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime," said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "Today's sentence demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain."

“This case is another example of the success of the task force concept where multiple federal agencies bring expertise to an investigation resulting in a successful conviction,” said Craig Wisniewsky, Special Agent in Charge of the Secret Service's Cleveland office.

 

This case is being prosecuted by Assistant U.S. Attorney Christos M. Georgalis following an investigation by the IRS-CI and United States Secret Service.

A federal grand jury returned a two-count indictment charging Shawn L. Hicks, 20, of North Royalton, with receiving, distributing, and accessing with intent to view visual depictions of minors engaged in sexually explicit conduct, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio. 

The indictment alleges that from on or about September 5, 2014, through on or about July 15, 2015, Hicks knowingly received and distributed numerous computer files that contained visual depictions of minors engaged in sexually explicit conduct.  The indictment also alleges that from on or about December 19, 2014, through on or about March 4, 2015, Hicks knowingly accessed with intent to view on his computer visual depictions of minors engaged in sexually explicit conduct, to include at least one image involving a prepubescent minor or a minor who had not attained 12 years of age.

Assistant United States Attorney Megan R. Miller is prosecuting the case following an investigation by the Federal Bureau of Investigation.   

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

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

 

 

A Mansfield man was indicted in federal court on child pornography charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Mitchell A. Owens, 29, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.

Owens knowingly received and distributed, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce.  This took place between August and September 2016, according to the indictment.

The indictment also charges that on or about October 11, 2016, Owens possessed a computer hard drive which contained child pornography.            

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

This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Federal Bureau of Investigation, the Mansfield Police Department and the Canton Police Department.

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

A federal grand jury returned an indictment charging a Guatemalan citizen with re-entering the United States illegally, said said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Julio Lopez-Rodriguez, 41, was found in Cleveland after being deported to Guatemala in 2003 following an aggravated felony conviction, according to the indictment. 

Assistant United States Attorney Karrie D. Howard is prosecuting the case following an investigation by the United States Immigration and Custom Enforcement, Department of Homeland Security.

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

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

A Cleveland man was charged with enticement, sexual exploitation of a child and receiving visual depictions of a minor engaged in sexually explicit conduct, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Kevin D. Wyrock, 49, knowingly used a cellular phone with Internet connectivity, to persuade, induce, entice, coerce and attempt to persuade, induce, entice and coerce a 12-year-old girl, to engage in sexual activity for which Wyrock could be charged with a criminal offense. This took place in October 2015, according to the indictment. 

The indictment also charges that during that same time period, Wyrock used, persuaded, enticed and coerced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, knowing and having reason to know that such visual depiction would be transported and transmitted, using any means and facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce, and such visual depiction was actually transported and transmitted, using any means and facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce.   

The indictment also charges that during that same time period, Wyrock  knowingly received, using any means and facility of interstate and foreign commerce, numerous digital files, which files contained visual depictions of a real minor engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce.           

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

This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Cleveland and Miami offices of the Federal Bureau of Investigation and the Juniper (Florida) Police Department.

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

A federal grand jury indicted Derrick Swinney, 46, of Cleveland, on one count of escape and two counts of bank robbery, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio. 

The indictment alleges that on or about January 13, 2016, Swinney walked away from the Oriana House, a correctional halfway house in Cleveland, after having been released from federal prison following a 2005 conviction for bank robbery.

The indictment further alleges that Swinney robbed the Key Bank at 3110 W. 117th Street, in Cleveland, on September 20, and again on October 4, 2016, of a total of $4,870.

The U.S. Marshal Service conducted the investigation in conjunction with the Federal Bureau of Investigation.  The case is being prosecuted by Assistant United States Attorney Karrie D. Howard.

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

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

A federal grand jury indicted Michael G. Roby, 46, of Amherst, on charges of mailing a letter threatening the lives of a male victim and his family, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

The indictment alleges that on or about June 15, 2016, Roby knowingly caused to be delivered by the United States Postal Service a letter to the victim that contained threats to injure the victim as well as the victim’s mother, brother, wife, and son.  

The Amherst Police Department and the Federal Bureau of Investigation conducted the investigation.  The case is being prosecuted by Assistant United States Attorney Ranya Elzein.

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

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.