Northern District of Ohio

Charles Butler, 33, of Toledo, pleaded guilty today to a federal hate crime for beating an African-American stranger he saw on the street. 

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, Butler and Robert Paschalis 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.  Butler admitted during his plea to singling out and beating A.W. because he 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.”

“Race-motivated violence violates the law and offends human decency,” said Principal Deputy Assistant Attorney General Gupta.  “The Justice Department will always vigorously prosecute those who carry out violence against individuals because of the color of their skin – crimes which threaten the very fabric and core values of our country.”

“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.”

Paschalis has also been charged with a hate crime.  His charges are still pending.  An indictment is merely an accusation and defendants are presumed innocent unless proven guilty.

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 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.

Charles Butler, 33, of Toledo, Ohio, pleaded guilty today to a federal hate crime for beating an African-American stranger he saw on the street. 

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, Butler and Robert Paschalis 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.  Butler admitted during his plea to singling out and beating A.W. because he 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.”

“Race-motivated violence violates the law and offends human decency,” said Principal Deputy Assistant Attorney General Gupta.  “The Justice Department will always vigorously prosecute those who carry out violence against individuals because of the color of their skin – crimes which threaten the very fabric and core values of our country.”

“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.”

Paschalis has also been charged with a hate crime.  His charges are still pending.  An indictment is merely an accusation and defendants are presumed innocent unless proven guilty.

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 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.

Eric V. Bartoli, who a fugitive for more than a decade, was sentenced to 20 years in prison for defrauding hundreds of investors out of millions of dollars in the 1990s, law enforcement officials said.

Bartoli pleaded guilty earlier this year to eight counts, including conspiracy, securities fraud, sale of unregistered securities, wire fraud, mail fraud and attempted income tax evasion.

Bartoli operated a large-scale Ponzi scheme from 1995 through 1999. He created and operated a company by the name of Cyprus Funds, Inc., which was based in Doylestown, Ohio and incorporated in Central America. Bartoli and his co-conspirators operated Cyprus to sell certificates of deposit and unregistered mutual funds.  Cyprus raised approximately $65 million from an estimated 800 investors in Latin America and the United States. Some of Cyprus’s victims included retirees, according to court records.

Bartoli was sued in 1999 by the Securities and Exchange Commission on charges involving the Cyprus Funds, Inc. Bartoli did not appear at a scheduled hearing regarding the SEC charges. He was subsequently found in contempt of court and a civil arrest warrant was issued. Bartoli had fled Ohio and was arrested in New Hampshire. Bartoli was not detained at that time and became a fugitive.

An indictment was filed against Bartoli in the U.S. District Court for the Northern District of Ohio in October 2003.

Bartoli was taken into custody by the Peruvian National Police in Lima, Peru, in 2013. The operation was a joint effort between the FBI, Diplomatic Security Service, and the Peruvian National Police. He was returned to the United States last year.   

“Mr. Bartoli spent years stealing millions of dollars from hard-working people, then more than a decade on the run,” said U.S. Attorney Carole S. Rendon. “Sometimes the wheels of justice grind slowly, but today Mr. Bartoli was finally held accountable for his crimes. The fact that he will spend the foreseeable future in prison is a testament to the efforts of everyone who worked on this case.”

“After years of living on the run, Mr. Bartoli will now serve time behind bars for swindling individuals out of large sums of money, including entire life savings,” said FBI Special Agent in Charge Stephen D. Anthony. “The FBI will continue to investigate fraudsters, like Eric Bartoli, and will hold them accountable for their criminal behavior, no matter how long it takes and no matter where they try to hide."

“More than a decade has passed since Mr. Bartoli’s criminal actions were brought to light in an indictment. Well, today marks the end of a long successful investigation that uncovered a multi-million dollar Ponzi scheme laced with a web of financial lies that left 800 investors in financial peril,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The IRS, FBI, and the U.S. Attorney’s Office never stopped pursuing Mr. Bartoli, proving that you can run, but you cannot hide from the federal government.”

This case is being prosecuted by Assistant U.S. Attorneys Antoinette T. Bacon and Christos M. Georgalis following an investigation by the Federal Bureau of Investigation, Internal Revenue Service and the Securities and Exchange Commission.

A Puerto Rican man was sentenced to more than 21 years in prison for assaulting federal officers, failing to register as a sex offender and a firearms offense, law enforcement officials said.

Luis Cruz-Ramos, 30, pleaded guilty earlier this year to one count each of assaulting federal officers, brandishing a firearm in furtherance of crime of violence and failing to register as a sex offender.

Ramos was wanted on an arrest warrant when he was assaulted two special deputy U.S. Marshals on April 1, and brandished a firearm to do so, according to the indictment. Ramos also failed to register as a sex offender between 2013 and 2016 after traveling to Ohio, according to court documents.

This case is being prosecuted by Assistant U.S. Attorney David M. Toepfer following an investigation by the U.S. Marshals Service, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives and Ohio State Highway Patrol.

Carole Rendon, the United States Attorney for the Northern District of Ohio, and The Cleveland Museum of Art (the Museum) announced today the transfer of a 14th-century manuscript leaf from an Antiphonary to U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) for delivery to Italy making possible its re-integration with the Antiphonary.

The Master of Dominican Effigies, an important illuminator, created an illuminated manuscript known as Codex D sometime between 1335 and 1345. Codex D, essentially a type of hymnal, is parchment with leather binding and contained seven illuminated pages.

The illuminated page with the initial L depicts Saint Lucy (Santa Lucia). A portion of the page was removed from the Antiphonary and is known as a leaf. The leaf is ink, tempera and gold on parchment. It measures 44.3 cm high and 35.2 cm wide

The Antiphonary was formerly in the Church of Saints Ippolito and Biagio of Castelfiorentino and is now preserved in the Museum of Santa Verdiana, Castelfiorentino, Italy.

The leaf was purchased, in good faith, by the Museum in 1952, at which time it was attributed to a different artist. It has not been on display for more than 10 years.

The Museum was contacted by ICE after a second leaf appeared on the Swiss market. That leaf was recently turned over to the Italian government. Working collaboratively with ICE to research the history of the leaf and after evaluating the information provided by the Italian government, the Museum agreed the leaf should be transferred to Italy to be reunited with the Antiphonary.

 “Once we were able to substantiate the information provided, we decided that the best place for the leaf was back with the Antiphonary. We feel the leaf has greater significance if it is reunited with the other illuminations in the manuscript. Along with the recovery of a second leaf, the Antiphonary will now be complete” said William Griswold, director of the Cleveland Museum of Art. “We appreciate Homeland Security bringing this to our attention and working with us to effectuate the right result for the work.”

Rendon noted that the cooperation between her office, ICE and the Museum has resulted in the transfer.

“This story of a beautiful illuminated page missing from the Antiphonary for many years will have a happy ending thanks to the work of the Italian government, ICE’s presence in Rome, ICE here in Cleveland, our office and the Museum,” Rendon said.

“Cultural artifacts and antiquities have a monetary value in the markets where they are bought and sold. But to the item’s true owners, the value cannot be measured monetarily,” said Steve Francis, acting special agent in charge for HSI Detroit. “We’re pleased to announce with our partners at the U.S. Attorney’s Office and with the Museum that today’s transfer brings us one step closer to reuniting this treasure with its rightful owner, the Italian people."

The Antiphonary is a partially illuminated liturgical manuscript intended for use by a choir.  A delivery date to the Italian government is being finalized. 

Two Michigan men were indicted for credit card fraud for having 94 cards with stolen account numbers and names, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Timothy Darnel Keith, 25, of Canton, Michigan, and Chris Monte Huddelston, 22, of Flint, Michigan, were charged with conspiracy to commit access device fraud, possession of counterfeit and unauthorized access devices and possession of access device making equipment.

Keith and Huddleston purchased stolen and/or fraudulently obtained credit card account information and other bank account information over the Internet. The pair had a credit-card reader and writer which they used to produce counterfeit credit cards, according to the indictment.

They then drove to Ohio from Michigan to use the counterfeit gift cards and stored value credit cards they had produced. They had 94 such cards on April 6, according to the indictment

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 United States Secret Service in Toledo. The case is being prosecuted by Assistant U.S. Attorney Noah P. Hood.         

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 Youngstown man pleaded guilty to selling heroin that resulted in a fatal overdose, as well as additional firearms and narcotics crimes, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Lebron Charles Bunkley, 37, admitted to selling heroin to a man identified in court documents as J.P. J.P. was found dead in a vacant lot on May 15, still clutching a hypodermic needle in his hands. A search of his cell phone revealed that his last outgoing call was to Bunkley, according to court documents.

Police searched Bunkley’s house and found 286 grams of heroin, 345 grams of powder cocaine, 84 grams of crack cocaine, two firearms and ammunition.

Bunkley pleaded guilty to distribution of heroin, cocaine and crack cocaine, being a felon in possession of firearms and using firearms and ammunition in furtherance of the drug trafficking.

Bunkley is scheduled to be sentenced Feb. 7. The federal sentence guidelines call for a sentence of between 21 and 27 years in prison, according to court documents.

“We will continue to prosecute and seek stiff sentences for dealers who sell heroin that kills our neighbors,” Rendon said. “Aggressive enforcement will remain part of the comprehensive strategy – along with treatment, education and changing prescribing practices – required to combat this epidemic.”

The investigation preceding the indictment was conducted by the Mahoning Valley Law Enforcement Task Force, the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.

A Summit County man was charged in federal court with possession with intent to distribute drugs after he was arrested with more than 24 pounds of cocaine, law enforcement officials said.

Jerry J. Davis, Jr. 35, of New Franklin, was pulled over for speeding on Nov. 1 in Akron. He crashed after attempting to flee police. Davis then ran and jumped off the bridge at East Miller Avenue and Broadway Street, but was arrested near where he jumped from the bridge, according to an affidavit filed in U.S. District Court.

Officers searched Davis’ vehicle and found 11 kilograms of cocaine. They also found a loaded Glock .40-caliber pistol with an extended magazine, according to the complaint.

This case is being prosecuted by Assistant U.S. Attorney Aaron Howell following an investigation by the Drug Enforcement Administration, the Akron Police Department, the Federal Bureau of Investigation and the Ohio State Highway Patrol.

If convicted, the defendant's sentence will be determined by the court after reviewing factors unique to this case, including the defendants’ 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.         

A charge 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 Sandusky man was arrested today and charged in federal court with trafficking heroin and cocaine, law enforcement officials said.

Daniel N. Hallingshead, 21, was charged with conspiracy to possess with intent to distribute at least one kilogram of heroin and possession with intent to distribute at least 500 grams of cocaine.

Hallingshead and others sold large amount of heroin and cocaine from several houses in the Sandusky area from at least October 2015 through this week, according to court documents.

This case is being prosecuted by Assistant U.S. Attorneys Alissa M. Sterling and Duncan Brown following an investigation by the Drug Enforcement Administration, the Sandusky Police Department, the Ohio Bureau of Criminal Investigation, the Perkins Township Police Department and the Erie County Sheriff’s Office.

If convicted, the defendant's sentence will be determined by the court after reviewing factors unique to this case, including the defendants’ 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.         

A charge 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.

The investigation is ongoing.

An Akron man was sentenced to nearly 10 years in prison threatening a man with death unless he was given money or introduced to a source with drugs, 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.

Franklin D. Conley, 28, was convicted earlier this year of one count of violating the Hobbs Act, three counts of use of a communication facility to facilitate a drug offense and one count of interstate communication with intent to extort. He was sentenced to 115 months in prison.

Conley and Patrick Griffin repeatedly threatened the victim and his family, beginning in February 2015, with serious physical harm or death if they were not given money or introduced to a source of illegal drugs, according to court documents and trial testimony.

Griffin, 29, also of Akron, has pleaded guilty to his role in the crime.

The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The matter was prosecuted by Assistant United States Attorneys Teresa Riley and Robert Bulford.

A mother and son from Toledo were charged for their roles in a conspiracy to defraud people out of tens of thousands of dollars and then launder the stolen money, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Criminal informations were filed charging Patsy A. Schmidt, 53, and Bradley Schmidt, 22, with one count of conspiracy to launder money and one count of money laundering.

Patsy Schmidt fraudulently obtained nearly $50,000 between 2010 and 2013, while Bradley Schmidt fraudulently obtained nearly $24,000 between 2012 and 2013, according to the charges.

According to the charges:

The Schmidts and other co-defendants targeted people selling items on sites such as Craigslist.com. They sent emails to these people expressing interest in an item for sale when they had no intention of buying it.

The Schmidts and others stated to the seller that they would use PayPal to send the cost of the item plus an additional fee to cover the cost of a pick-up agent, transfer agent, shipping or hauling. The defendants then requested the victims wire the fee to the pick-up agent via Western Union or MoneyGram. The pick-up agent was identified as Patsy Schmidt, Bradley Schmidt or one of the other co-conspirators.

The Schmidts and others then used email addresses that resembled PayPal email accounts and wrote emails falsely stating that the purported buyer had placed money into the victim’s PayPal account. They stated the money would not be available until after the victim sent verification of a money transfer for the so-called pick-up agent’s fee.

Once the victim sent verification that the money had been sent, the Schmidts ceased communication and kept the money that had been wired to them. Money was wired to the Toledo area from Massachusetts, Oregon, Texas, Washington and elsewhere.

The Schmidts then wired the proceeds of the fraud to co-conspirators in Nigeria and retaining a portion of the money for themselves.

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 United States Secret Service, in Toledo, Ohio.  The case is being handled by Assistant United States Attorney Noah P. Hood.           

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 University Heights man was indicted in federal court after investigators found him with more than four pounds of heroin, approximately 11 pounds of cocaine and 10 firearms, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Marcus Labrone Morris, 42, was named in a four-count indictment, charged with possession with intent to distribute heroin, possession with intent to distribute cocaine, being a felon in possession of firearms, and operating the home at 3582 Farland Road as a drug house.

U.S. Postal Inspectors interdicted a package sent from California to 3598 East 147th Street in Cleveland on Oct. 3. The package was address to Mrs. Momma James. The package was later determined to contain two kilograms of heroin – one kilogram a light gray powdery substance and the other kilogram a black tarlike substance, according to court documents.

The package was delivered and on Oct. 4, Morris took the target package from the porch on East 147th Street and placed it in the bed of his truck. After approximately 20 minutes, during which time Morris was making counter-surveillance maneuvers, he was arrested and the package was recovered. Morris and his wife then gave consent to search their home at 3582 Farland Drive in University Heights. Investigators found approximately five kilograms of cocaine and 10 firearms and ammunition, according to court documents.

Morris is forbidden from possessing firearms because he was convicted of cocaine trafficking in 2001 in Trumbull County Common Pleas Court.

“This case is another grim reminder that heroin and other dangerous drugs are in our community and don’t adhere to any boundaries,” Rendon said. “We will continue to work with our partners to get narcotics off the streets and firearms out of the hands of people who are not allowed to possess them.”

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 Matthew Cronin 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 five-count Indictment charging Joseph A. Huber, 47, formerly of Cleveland, with threatening to kill two federal judges and to blow up the federal buildings they respectively preside in, said U.S. Attorney Carole S. Rendon and U.S. Marshal Peter J. Elliott.

The indictment alleges that on September 26, 2016, Huber wrote a letter to Cleveland-based U.S. District Court Judge Christopher A. Boyko and threatened to kill him and members of his family.  In that same letter, Huber additionally threatened to blow up the “fancy federal building” where Judge Boyko presides and kill a federal prosecutor that previously convicted Huber in 2014.

The Indictment next alleges that on September 26, 2016, Huber wrote a letter to Akron-based U.S. Magistrate Judge Kathleen B. Burke and threatened to kill her for dismissing a civil suit Huber had previously filed.  Like the letter to Judge Boyko, Huber threatened to blow up the federal courthouse where Magistrate Judge Burke presides.

Finally, the Indictment alleges that on October 6, 2016, Huber wrote another letter to Magistrate Judge Burke and threatened to kill her.

If convicted, the sentence in this case will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique 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 case is being prosecuted by Assistant U.S. Attorney Benedict S. Gullo.  The case was investigated by the United States Marshal’s Service—Office of Protective Intelligence.

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.

Richard Snyder, 72, of Massillon, was charged with enticement and distribution of child pornography, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Snyder knowingly used a computer and the Internet, to attempt to persuade, induce, entice and coerce, a 13-year-old girl, to engage in illegal sexual activity with him.  This took place from May 26  through August 17, 2016, according to the indictment. The indictment also charges that on or about July 25, 2016, and July 26, 2016, Snyder knowingly distributed and attempted to distribute child pornography that, using any means and facility of interstate and foreign commerce, had been shipped and transported in and affecting interstate and foreign commerce by any means, including by computer.     

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, the Ohio Internet Crimes Against Children Task Force, the Vermont Internet Crimes Against Children Task Force, the Jackson Township 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.

Four Ohio men were sentenced to prison for defrauding investors out of more than $10 million by selling unregistered securities and making several misrepresentations to investors about the product they purported to develop, law enforcement officials said.

Kenneth Jackson, 59, of Glenmont, William Schureck, 81, of Lexington, Dennis Deciancio, 73, of Macedonia, and Daryl Dane Donohue, 67, of Mansfield, were convicted following a trial earlier this year on counts including conspiracy to commit mail and wire fraud, conspiracy to launder money, mail fraud, wire fraud, money laundering, making false statements and other charges.

Jackson was sentenced to more than 15 years in prison. Schureck was sentenced to nine years in prison. Deciancio was sentenced to nearly six years in prison. Donahue was sentenced to more than four years in prison.

“These defendants misled investors and lied about their product,” said U.S. Attorney Carole Rendon said. “They earned these prison sentences by stealing the millions of dollars from hundreds of people.”

“These four individuals conspired to misrepresent a product to their investors in order to make a profit,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue efforts to bring to justice those that have duped investors out of their hard-earned money.”

“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 sentencings 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.  IRS Criminal investigators will continue to use their financial expertise to identify and trace laundered funds in these types of investor fraud schemes.”

All four men were affiliated with Medical Safety Solutions, or MSS, a company Jackson founded in 2007 which operated out of Mansfield and had a purported “research and development center” at Jackson’s home in Glenmont. Jackson held the title of Director of Research and Development at MSS. Schureck co-founded the company held the title of Chief Executive Officer at MSS. Deciancio co-founded the company and attended trade shows on the company’s behalf. Donohue was a longtime associate of Jackson who communicated with shareholders of MSS and held himself out as an “FDA consultant” hired by the company for the sole purpose of obtaining Food and Drug Administration approval for the Sharps Terminator, according to trial testimony.

The founders of MSS held the company out as an entity created to develop, market and sell a hypodermic needle destruction device they called the Sharps Terminator. The Sharps Terminator required premarket approval from the FDA before it could be sold in the United States. Jackson and Schureck filed a provisional application for a patent on the Sharps Terminator around April 2007 but did not file an actual patent application until September 2011. MSS filed a premarket approval application for the Sharps Terminator in October 2012. Between 2007 and May 2013, the defendants were engaged in the unregistered sale of securities. They did this by seeking out individuals to buy private shares of stock in MSS, but those shares were not registered with the Securities and Exchange Commission, according to trial testimony.

They defrauded investors by inducing them to buy stock and making false and fraudulent misrepresentations about MSS and the Sharps Terminator, including: that MSS had submitted a premarket approval application when it had not; that FDA approval of the Sharps Terminator was forthcoming or imminent when MSS had not even initiated the approval process; that the FDA had approved the Sharps Terminator when it had not; that the product was “market ready” that was ready for mass production when it was not, and other misrepresentations, according to trial testimony.

To make MSS appear functional and the Sharps Terminator market ready, the defendants took current and prospective investors to MSS’s “R&D facility” and showed them parts, a small number of assembled Sharps Terminator units, and large numbers of Sharps Terminator boxes, many of which were really empty, according to the indictment.

More than 500 investors were defrauded as part of the scheme. They lost more than $10 million between 2007 and 2013, according to trial testimony and court documents.

Jackson and Schureck transferred the money to cover other expenses, and Jackson gambled more than $3.3 million at Mountaineer Casino between 2009 and 2013, according to the court documents.

This case is being prosecuted by Assistant U.S. Attorneys Rebecca Lutzko and Adam Hollingsworth following an investigation by the Federal Bureau of Investigation, the Internal Revenue Service—Criminal Investigations and the Food and Drug Administration.

Update Feb. 5, 2025:

In May 2013, before the indictment was returned in this matter, the defendants caused the company that they operated in connection with their fraud scheme—Medical Safety Solutions (“MSS”)—to transfer the use and management of the intellectual property for the Sharps Terminator device, including its patents, designs, proprietary information, and trademarks, to a Texas limited liability company known as “Sharps Terminator LLC.”  Sharps Terminator LLC further took over the FDA application and approval process for the device under this agreement, and was given full control of the day-to-day management of the transferred intellectual property and the manufacture of distribution of the product.  Defendants transferred the intellectual property in return for MSS and its shareholders receiving a share of net profits from Sharps Terminator LLC’s possible future sale of the Sharps Terminator device.  As of the sentencing date (October 25, 2016), two independent third parties, specifically, Texas limited liability companies The Bucley Group, LLC, and Four on Point, L.L.C., owned and operated Sharps Terminator LLC, and none of the charged defendants maintained any control of any of those companies.  Further, as part of the defendants’ sentences, the district court ordered that all defendants disgorge any shares of stock that they held in MSS, such that the MSS shareholders who were the victims of defendant’s scheme would receive the benefit of MSS’s agreement with Sharps Terminator LLC.

The former Chief Operating Officer of MetroHealth Hospital System is one of four men indicted for their roles in a conspiracy to defraud the hospital and others through a series of bribes and kickbacks totaling hundreds of thousands of dollars related to the hospital’s dental program, law enforcement officials said.

Named in the indictment are: Edward R. Hills, 56, of Aurora; Sari Alqsous, 32, of Cleveland; Yazan B. Al-Madani, 32, of Westlake; and Tariq Sayegh, 38, of Cleveland.

Hills worked in various capacities at MetroHealth, including as Chief Operating Officer and Director of MetroHealth Dental. He also served as interim President and Chief Executive Officer from December 2012 through July 2013. Alqsous, Al-Madani and Sayegh are dentists who worked for MetroHealth.

“I hoped we had reached a point in Cuyahoga County where public employees taking cash bribes and using downtown apartments to entertain friends was a thing of the past,” U.S. Attorney Carole S. Rendon said. “We will remain vigilant in stamping out public corruption and these defendants will be held accountable for their crimes.”

“Being extorted is not what a dental resident is expecting when applying to a dental program but that is exactly what happened, and that is not the only illegal scheme these four devised,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “MetroHealth officials discovered possible wrongdoing, contacted the FBI, and partnered with the FBI to ensure that these individuals would be held accountable for their criminal actions.”

“These government-funded programs were designed to help the men, women, and children of Cuyahoga County, but these individuals defrauded them for their own personal gain and used their companies as personal piggy banks." said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.  “Therefore, in partnership with the U.S. Attorney’s Office and the FBI, the IRS Criminal Investigation Division gives priority to investigations involving the alleged breach of the public trust by public officials at any level.”

“This investigation found that these defendants were motivated by greed to manipulate the health care system and extort dental residents in order to line their own pockets,” said Ohio Attorney General Mike DeWine.

According to the 33-count indictment unsealed today in U.S. District Court:

Hills, Alqsous and Al-Madani engaged in a RICO conspiracy from 2008 through this year involving a series of elaborate bribery conspiracies, witness tampering and other crimes. These bribes include Hills soliciting cash, checks, a $3,879 Louis Vuitton briefcase, a 55-inch television, airline flights and use of a downtown apartment from Alqsous, Al-Madani and others. In return, Hills took official actions on their behalf, including allowing them to work at their private dental businesses during regular business hours while receiving a full-time salary from MetroHealth.

Alqsous, Al-Madani and others gave cash, checks and other things of value to Hills beginning in 2009. The indictment details text messages and meetings, often at expensive restaurants, which resulted in cash being deposited into Hills’ bank accounts.

Alqsous sent a text message to Al-Madani and another person in 2013 that stated: “With 22nd of October approaching we ll be celebrating Dr hills bday earlier this year…1000 dollars each is the gift from the 3 sons their father.” Later that day, $3,000 was deposited into Hills’ bank account.

In 2012, Alqsous rented and lived in an apartment at the Perry Payne apartment building in downtown Cleveland. When he bought a residence, Hills instructed Alqsous to continue paying rent and other bills at the Perry Payne building, even though Alqsous would no longer be living there. Hills used the Perry Payne apartment to house an associate and for his own personal use in 2013 and 2014 while Alqsous, acting on Hills’ orders, continued to pay rent and other bills.

Hills instructed Alqsous to purchase furniture for the apartment for Hills’ personal use. Alqsous sent Hills a text in 2013 stating: “I bought your bedroom yesterday…there is mirrors everywhere…You will like it.”

Hills became interim President and CEO of the MetroHealth Hospital System in December 2012. Around that time, he told Alqsous, Al-Madani and others that he wanted a specific Louis Vuitton briefcase because his predecessor had a similar briefcase.

Alqsous texted a photo of the briefcase to Hills and wrote: “The guys are also very excited about their raise haha.” Hills responded with: “Thanks I’m so excited to have my bag to start my new job as #1.” Later that day, Alqsous, Al-Madani and others purchased the briefcase for $3,879 from Saks Fifth Avenue in Beachwood and later presented it to Hills.

As director of MetroHealth Dental, Hills was responsible for determining monthly bonuses for dentists who produced receipts in excess of their monthly salary and benefits. Dentists typically received a monthly bonus totaling 25 percent of the monies they generated for excess receipts.

Between 2010 and 2014, Hills regularly upwardly adjusted the bonuses of Alqsous, Al-Madani and others, by a total of approximately $92,829.

Hills also allowed Alqsous, Al-Madani and others to retain full-time salaries and benefits at MetroHealth without requiring them to work full-time hours, thus allowing them to operate private dental clinics. Hills, acting at the request of Alqsous and Al-Madani, provided MetroHealth dental residents to practice at those private clinics during regular business hours. Neither Alqsous nor Al-Madani paid wages or salaries to the resident dentists.

Additionally, Alqsous, Al-Madani and Sayegh solicited and accepted bribes totaling tens of thousands of dollars from prospective candidates to the MetroHealth Dental residency program.

In a typical year, the MetroHealth Dental residency accepted four to six candidates for the residency program from a pool of 40 to 60 applicants. Alqsous, Sayegh and Al-Madani each had the authority to influence the selection of dental residents, and Hills had final decisional authority over who was selected for the residency program.

Alqsous and Sayegh often identified and selected candidates who were from Jordan or trained at a Jordanian dental school, telling them they would have to pay a “donation” to MetroHealth to be considered. Alqsous and Sayegh directed the candidates to pay the “donation” directly to them, and in some cases, told the candidates a portion of the money would go to Hills.

Alqsous, Sayegh and Al-Madani solicited at least $75,000 in bribes from resident dentist candidate between 2008 and 2014.

In another conspiracy, Al-Madani and Alqsous paid bribes to Hills in exchange for him taking actions to refer Medicaid recipients to private dental clinics owned by Al-Madani and Alqsous instead of MetroHealth. All three took steps to conceal this activity by claiming kickback checks totaling $17,600 written to Hills were for “consultation fees” or “professional fees”.

Hills, Alqsous and Al-Madani also conspired to obstruct justice, instructing people not to cooperate with law enforcement after becoming aware of the federal investigation in 2014.

Hills also made false statements on tax returns, failing to claim approximately $165,751 in unreported income stemming from bribes, kickbacks and other things of value between 2011 and 2013.

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.

This case is being prosecuted by Assistant U.S. Attorneys Om Kakani and Michael L. Collyer following an investigation by the FBI, IRS-CI, Ohio Bureau of Criminal Investigation and the Ohio Office of the Inspector General.   

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.

The investigation is ongoing.

An Elyria man was sentenced to more than four years in prison for making threats with a white powdery substance, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Drew D. Manns, 33, was sentenced to 51 months in prison. It will be served consecutively to his state prison sentence stemming from an arson.

Manns previously pleaded guilty to mailing threatening communications and related charges.

Manns sent Summit County Clerks and Prosecutor’s Office letters including a white powdery substance, and identified the substance as anthrax in the body of the accompanying letters, according to court documents.

The Summit County Prosecutor’s Office conducted the investigation.  The case is being prosecuted by Assistant United States Attorney Marisa T. Darden.    

A federal grand jury returned a one-count indictment charging Todd J. Kniseley, aka Todd J. Kniceley, 27, of Youngstown, with failing to register and update a registration as a sex offender as required by law, said U.S. Attorney Carole S. Rendon.

The indictment alleges that beginning at least as early as October 22, 2015 until in or about October 5, 2016, Kniseley traveled in interstate commerce and knowingly failed to register and update a registration pursuant to the Sex Offender Registration and Notification Act.

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.

This case is being prosecuted by Assistant United States Attorney Jason M. Katz following an investigation by the United States Marshal 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.

Michael A. Wilt, 56, fo Buckhannon, West Virginia, was charged with enticement and travel with intent to engage in illicit sexual conduct, said U.S. Attorney Carole S. Rendon.

Wilt used a compuer and cellular phone from August 8 through September 15, 2016, to attempt to persuade, induce, entice and coerce a 14-year-old girl, to engage in illegal sexual activity with him.  The indictment also charges on or about September 15, 2016, Wilt knowingly traveled from West Virginia to Ohio, for the purpose of engaging in illicit sexual conduct, as defined in Title 18, United States Code, Section 2423(f), with a 14 year‑old girl.     

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 Ohio Internet Crimes Against Children Task Force and 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 Warren man was sentenced to one year and one day of incareceration for mailing an envelope containing white powder to his former workplace, 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.

Anthony J. Natale, 38, previously pleaded guilty to with one count of conveying false information related to the use of a weapon of mass destruction.

Natale mailed an envelope containing white powder via the United States Postal Service to American Business Center, at 7677 South Avenue, Youngstown, on November 10, 2014.  This was done with the intent to convey false and misleading information related to the use of a weapon of mass destruction, according to court documents.

Natale formerly worked at American Business Center. He was terminated on Oct. 6, 2014, according to court documents.

He was ordered to pay $9,834.13 to the victim company, and $14,361.90 to the first responders. He will also serve three years of probation and pay a $100 special assessment.

The case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould, and was investigated by the Federal Bureau of Investigation and Mahoning County Sheriff's Office. 

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 Streetsboro man was indicted in federal court of drug and firearms violations, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Theodore Elenniss, 39, of Streetsboro, was indicted on one count of maintaining a drug premises and one count of being a felon in possession of firearms and ammunition.

Elenniss maintained a place on State Route 303 in Streetsboro, for the purpose of manufacturing, distributing, and using controlled substances, those are: marijuana, amphetamine salts, Xanax, and Alprazolam. On Sept. 28, 2016, Elenniss possessed firearms, those are: a Remington, model 788 rifle; an AMT “Back Up”, .380 caliber pistol; a Mossberg, 12 gauge shotgun; a Savage Mark II, .22 caliber rifle; a Noble Company, model 235, .22 caliber rifle, and ammunition. He had those firearms despite having been previously convicted of a felony in the Portage County Court of Common Pleas in 2005, 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.

This case is being prosecuted by Assistant U.S. Attorney David M. Toepfer following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Portage County Drug 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.

Five people were sentenced to prison for their roles in a conspiracy to defraud about 70 investors out of approximately $17 million, law enforcement officials said.

Kenneth Grant, of Copley, was sentenced to 92 months in prison.

Thomas Abdallah, of Brunswick, was sentenced to 82 months in prison.

Jerry Cicolani, formerly of Richfield, was sentenced to 57 months in prison.

Jeffrey Gainer, of Copley, was sentenced to 52 months in prison.

Mark George, of Independence, was sentenced to 21 months in prison.

Kelly Hood, formerly of Richfield, was sentenced to one year of home confinement followed by probation.

Collectively, the defendants were also ordered to repay more than $17 million in restitution.

All six previously pleaded guilty to charges related to the case.

“These defendants swindled people out of millions of dollars so they could live extravagant lifestyles,” U.S. Attorney Carole S. Rendon said. “This was flat-out fraud. The defendants knew fully that they were stealing from the investors.”

“These defendants callously preyed on the desires of many to make wise investments for a secure future and duped them out of their life savings,” said FBI Special Agent in Charge Stephen D. Anthony. “Fraudsters such as these remain a top priority of the FBI.”

“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 Special Agent in Charge of IRS Criminal Investigation.” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Combining the financial investigative expertise of the IRS with the skills and resources of the FBI and the U.S. Attorney’s Office makes a formidable team for combating major, greed-driven crimes.”

Abdallah and Kenneth Grant owned and operated KGTA Petroleum, Ltd. They and others marketed KGTA as a company that earned profits from buying and selling crude oil and refined fuel products. They represented to investors that they had relationships with third-party purchasers and investor funds would be used to purchase fuel products at a discount and then resold at substantial profit, according to court documents.

KGTA issued investment agreements and promissory notes which offered guaranteed monthly payments up to five percent per month or annual payments of approximately 60 percent per year, according to the information. The defendants never filed documentation about KGTA with the Securities and Exchange Commission, according to court documents.

Together, they obtained approximately $31 million from about 70 investors between 2010 and 2014 through false and fraudulent pretenses. They knew KGTA did not have agreements in place to sell oil and fuel. Instead, the defendants used investor money for personal expenditures and luxury items including a Mercedes Benz, a boat and mortgage payments on high-end residential property, according to court documents.

The defendants defrauded the investors out of approximately $17 million as a result of the conspiracy.

This case was prosecuted by Assistant U.S. Attorneys Mark S. Bennett and M. Kendra Klump following an investigation by the Federal Bureau of Investigation and Internal Revenue Service—Criminal Investigations.

Markeith L. Milton, 24, and Dominic L. Hudson, both of Chicago, was indicted for using other people's credit card numbers to obtain property, said U.S. Attorney Carole S. Rendon.

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 United States Secret Service in Toledo. 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.

U.S. Attorney Carole S. Rendon announced that Assistant United States Attorneys Ava Dustin and Ann Rowland will lead the efforts of her office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. 

Rowland has been appointed to serve as the District Election Officer in the eastern division for the Northern District of Ohio while Dustin will serve as the election officer in the western division. In that capacity, they are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.

“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” Rendon said. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.

The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, Dustin and Rowland will be on duty in this District while the polls are open. 

Rowland can be reached at 216-622-3847 while Dustin can be reached at 419-241-0767.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The FBI field office can be reached by the public at 216-522-1400.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

Rendon said: “Ensuring free and fair elections depends in large part on the cooperation of the American electorate.  It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”

A Euclid man was indicted in federal court for distributing heroin, said U.S. Attorney Carole S. Rendon.

Mario Mattox, 38, had more than 123 grams of heroin on Sept. 13, according to the indictment

This case is being prosecuted by Assistant U.S. Attorney Margaret Sweeney following an investigation by the Euclid Police Department.

If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.

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 indicted for being a felon in possession of two firearms and ammunition, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.

Lenelle Gray, 36, possessed an Imbel, .45 caliber pistol, a Mauser .32 caliber pistol, and ammunition on Sept. 8, after having been previously convicted of three felony drug trafficking offenses in the U.S. District Court, Northern District of Ohio, in 2005, according to the indictment. 

The Bureau of Alcohol, Tobacco, Firearms, and Explosives 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.

Two Chinese nationals were each  sentenced to more than two years in prison for defrauding Goodyear Tire & Rubber Company out of $1.5 million, said U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.

Xin Franco Fan and Rex Xu Yu both pleaded guilty earlier this year to conspiracy to commit wire fraud and honest services wire fraud. Both were sentenced to 27 months in prison and ordered to pay $1.5 million in restitution.

Fan and Yu will be deported upon their release.

Both men were employees of Goodyear Orient Company (Private) Limited, or GOCPL, a subsidiary of Goodyear, located in Singapore and with offices in China. GOCPL manages all of the natural rubber purchasing, delivery, financing and quality certifications for Goodyear’s global operations. Goodyear, through GOCPL, spends approximately $1 billion annually to acquire natural rubber for its operations. Fan was Yu’s manager, according to court documents.

Fan, Yu and others incorporated or caused to be incorporated overseas shell companies in which they held a financial interest. Fan, Yu and others caused Goodyear to purchase natural rubber from these shell companies. They also required Goodyear suppliers to use loading companies in which they had a financial interest. This took place between 2013 and 2016, according to court documents

“These two defendants deserve their prison sentences after stealing $1.5 million,” Rendon said. “Goodyear is to be commended for promptly reaching out to law enforcement when they uncovered this scheme. Because of the company’s quick action, these men were brought to justice.”

“The FBI is responsible for protecting the public’s interest in American companies by aggressively pursuing and bringing to justice those who unjustly profit from American ingenuity by stealing secrets,” said Stephen D. Anthony, Special Agent in Charge, FBI, Northern District of Ohio.

As a condition of their employment, Fan and Yu were obligated to act in the best interests of Goodyear when purchasing natural rubber. In 2015, Goodyear received an anonymous tip that Fan and Yu were receiving kickback payments in connection with GOCPL’s raw materials purchases. With the cooperation of Goodyear executives, an investigation into the matter led to Fan and Yu being arrested earlier this year and criminal charges being filed in federal court.

This case was prosecuted by Assistant U.S. Attorneys Rebecca Lutzko, Henry F. DeBaggis and James Morford following an investigation by the FBI.

Two brothers were indicted for conspiring to bring large amounts of heroin and fentanyl to Northeast Ohio from Connecticut, said U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.

The six-count indictment charges Mizraim Vega, 27, of South Euclid, and Abimelec Vega, 25, of Cleveland, with conspiracy to possess with intent to distribute heroin, acetylfentanyl and fentanyl. It charges them with additional substantive counts of distribution of heroin, fentanyl and acetylfentanyl in August and September.

According to court documents, Abimelec Vega identified himself as a member of the Latin Kings gang and could obtain large shipments of heroin and fentanyl from another Latin King member.

According to court documents, the Vegas sold 80 grams of heroin for $8,000 on Aug. 26. Mizraim Vega said: “The one thing I’ll tell is to make sure to cut it (dilute the heroin). That stuff…you can’t send it to the street like that, it’s too strong. That stuff could kill someone, bro!”

On Sept. 3, Abimelec Vega informed a source that he was changing phones because someone had died from heroin or fentanyl he had sold, according to court documents.

This case is being prosecuted by Assistant U.S. Attorney Margaret Sweeney following an investigation by the FBI.

If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.

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.

Two Akron men were indicted on charges of possession with intent to distribute fentanyl, said U.S. Attorney Carole S. Rendon.

Indicted are Brian L. Williams, 54, and Terrance L. Ford, 50

Akron Police Department Narcotics Unit Detectives along with Drug Enforcement Administration Task Force Officers executed a state search warrant at Williams and Ford’s residence in Akron on July 27, 2016 and recovered over 100 grams of a substance containing fentanyl along with several fentanyl patches, according to court documents. 

The case is being prosecuted by Assistant United States Attorney Aaron P. Howell following an investigation by the Akron Police Department and the Drug Enforcement Administration.

If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.

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 Akron man was indicted in federal court for selling fentanyl that caused a fatal overdose earlier this year, law enforcement officials said.

Steven D. Daniels, 31, was indicted on one count each of possession with intent to distribute fentanyl and distribution of fentanyl. The latter carries a sentencing enhancement because Daniels allegedly sold fentanyl that caused the fatal overdose of  a person identified in the indictment as T.B. That took place on April 2 in Akron, according to the indictment.

This case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the Akron Police Department and Drug Enforcement Administration.

If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.

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.

Twenty people were indicted for their roles in a conspiracy that brought large amounts of fentanyl, heroin and cocaine into Greater Cleveland from Chicago and Yonkers, New York, law enforcement officials said.

Some of these conspirators had significant links to the Sinaloa cartel. As part of the investigation, law enforcement seized 29 kilograms of cocaine, six kilograms of heroin and one kilogram of fentanyl, as well as $400,000 and several firearms.

Named in the 51-count indictment are: Ismael Jacinto Acosta, 37, of Cleveland Heights; Alfonso  Rodrigo, 36, of Warrensville Heights; David Urrabazo-Maldonado, Jr., 29, of Madera, Calif; Tennille Bryant, 36, of Yonkers, N.Y.; James Carver, 36, of Yonkers, N.Y.; Van Herron, 34, of Cleveland; Jose Hernandez, 55, of Chicago; Octavio Rodrigo, 60, of Maple Heights; Juan Carlos Solis, 26, of Chicago; Mario Amador-Ramirez, 52, of Cleveland; Roland Francisco Rivera-Erazo, 32, of Honduras; Maurice Walker, 31, of Cleveland; Manuel Maldonado, 37, of Lyndhurst; Reinaldo Hernandez, 27, of Cleveland; Cesar Zambrano-Espinal, 27, of Cleveland; Kelvin Zambrano, 27, of Cleveland; Jonathan Stepp, 32, of Cleveland; Ryan Miller, 33, of Cleveland; Nancy Vargas, 33, of Tolleson, Ariz. and Margaret Fernandez, 35, of Warrensville Heights.

The defendants conspired together from 2010 through 2016 to obtain fentanyl, heroin, cocaine and marijuana from suppliers in Chicago and Yonkers, N.Y. and then sell the drugs in Northeast Ohio.

Acosta obtained heroin from suppliers in Chicago. Jose Hernandez supplied vehicles with after-market trap compartments to transport hidden drugs and drug proceeds, according to the indictment.

Zambrano-Espinal used a home on West 130th Street in Cleveland to store and distribute the drugs and drug money. He supplied heroin and cocaine to others, including Stepp, Miller and Reinaldo Hernandez, who in turn sold the drugs in Northeast Ohio, according to the indictment.

The Rodrigos used a house on Maple Heights Boulevard in Maple Heights to store and distribute drugs and drug money. Maurice Walker, at the direction of Alfonso Rodgrigo, sold drugs and had access to stash houses, according to the indictment.

Jose Hernandez used a commercial bus line to attempt to transport two kilograms of heroin from Chicago to Cleveland, while Bryant transported one kilogram of fentanyl from Yonkers to Cleveland via commercial bus line. Bryant and Carver, working with the Rodrigos and Urrabazo-Maldonado, then transported the kilogram of fentanyl to the Maple Heights Boulevard home, according to the indictment.

Rodrigo and Margaret Fernandez is named in three counts for allegedly using the proceeds of drug sales to purchase several homes through the Cuyahoga County forfeited land sale.

“This organization is responsible for bringing nearly 100 pounds of heroin, cocaine and fentanyl into Northeast Ohio,” U.S. Attorney Carole S. Rendon said. “Sadly, the death toll continues to mount from this epidemic. Daily we mourn as parents bury their children and children bury their parents. In response, we will continue to aggressively target drug traffickers, while working just as aggressively to reduce the demand for drugs and to provide treatment for those already addicted.” 

DEA Special Agent in Charge Timothy J. Plancon said: “Attacking the opiate and heroin abuse epidemic in Ohio and across the United States is a top priority for DEA.  The indictments announced today reflect the complete disruption of a significant drug trafficking organization, responsible for the distribution of kilogram quantities of heroin, fentanyl, and cocaine in Ohio.  In an environment where overdose deaths have become daily news, halting this group’s ability to distribute these very lethal drugs into our community is a victory for all citizens of northern Ohio. The efforts and cooperation of the Ohio State Highway Patrol in this investigation were vital, and deserve recognition.”

“The harm inflicted by these drugs is matched only by the profit potential for those who sell them. Today’s indictment is the culmination of a lengthy effort in which IRS-CI worked with its law enforcement partners to disrupt the flow of money -- the lifeblood that allows these organizations to proliferate,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “This is an important victory for the citizens of Northern Ohio. These individuals not only fueled the drug problem in Northern Ohio, but they supported addiction in several parts of the country.”

This case is being prosecuted by Assistant U.S. Attorneys Robert F. Corts and Marisa Darden following an investigation by the Drug Enforcement Administration, the Ohio State Highway Patrol and the Internal Revenue Service – Criminal Investigations.

If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.

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 former Cleveland Housing Network official was sentenced to 30 months in prison for taking bribes and steering contracts, law enforcement officials said.

James Todt, 49, of Brecksville was sentenced to 30 months in prison by U.S. District Benita Y. Pearson. He previously pleaded guilty to one count of conspiracy to commit bribery and two counts of theft concerning programs receiving federal funds.  

Todt worked at the Cleveland Housing Network between 2005 and 2014, where his duties included supervising inspectors and project managers, as well as awarding CHN contracts on various projects for the non-profit community development organization. Lizandro Orellana, 56, of Cleveland, owned and operated Modern Construction Group LLC. Chris Peterson, 42, of Macedonia, owned and operated Top Notch Construction, according to court documents.

Todt corruptly solicited and accepted things of value from Orellana and Peterson between 2009 and 2014. Orellana paid $8,222 to Todt’s personal credit account at a local business in exchange for CHN work awarded to Modern Construction. Peterson paid Todt up to $10,000 in cash in exchange for CHN work that Todt awarded to Top Notch, according to court documents.

On numerous occasions, Todt provided Orellana with CHN’s internal cost projections for various projects, which were used to evaluate a contractor’s bid.

Orellana paid another person to do $3,650 worth of electrical work at Todt’s home in November 2012. In October 2013, Todt asked Orellana for assistance building a deck and installing windows at his home. Orellana provided a crew of six Modern employees to construct the deck, and directed employees to install seven windows. The labor cost related to the deck and windows was valued at approximately $8,736, according to court documents.

In 2012, Peterson repaired the roof of a home in Seven Hills owned by one of Todt’s relatives, and performed repairs on a rental property owned by Todt in Brecksville, according to court documents.

Todt also submitted false invoices and caused two checks totaling $15,280 to be deposited into his personal account, according to court documents.

Additionally, Orellana had a lead abatement contractor license issued by the Ohio Department of Health, which allowed Modern Construction to bid on lead-based paint abatement projects for CHN homes. These projects often required Modern to gut a portion or all of a home’s interior, including the removal of doors, windows, walls, moldings and sometimes porches. Orellana understood the work was to be done by workers licensed to perform lead-based paint abatement and comply with federal and state standards, according to court documents.

Modern Construction was contracted to conduct lead-based paint abatement on several CHN properties between 2010 and 2012. Orellana, due to his workload and to save time, directed employees to gut homes containing lead-based paint. Items and components covered in lead-based paint were removed without following abatement procedures. The employees directed to gut the homes were not licensed to perform lead-based paint abatement, which Orellana knew, according to court documents.

Orellana, Peterson and Modern Construction have pleaded guilty to their roles in the case and are scheduled to be sentenced Thursday.

This case is being prosecuted by Assistant U.S. Attorney Robert J. Patton and Special Assistant U.S. Attorney Brad Beeson. It comes following an investigation by the FBI, HUD-OIG, U.S. EPA, Ohio EPA, Ohio Bureau of Criminal Investigation, Ohio Department of Health – Environmental Compliance Program and the Cleveland Division of Police.

Two felons from Warren were indicted for stealing 30 firearms, as well as related charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Laval Jackson, 43, and Tyrone Thomas, 42, were indicted on charges of stealing firearms, being in possession of stolen firearms and being felons illegally in possession of firearms.

Kristi Coxson, 33, also of Warren, was indicted on one count of possession of stolen firearms.

According to the indictment, Jackson and Thomas On or March 29 stole from J & D Firearms, located in Warren, the following firearms:

1. Ruger, model SR1911, .45 caliber pistol, serial number 672-39025;
2. Glock, model 17, 9mm pistol, serial number BBDR194;
3. Stag Arms, 5.56mm rifle, serial number 330360;
4. JLD Enterprises, model PTR91, .308 caliber rifle, serial number B0074;
5. Vulcan Arms, model V15, .223 caliber rifle, serial number P006848;
6. Bersa, model Thunder 9, 9mm pistol, serial number F87740;
7. Glock, model 23, .40 caliber pistol, serial number AANN915;
8. Bersa, model Thunder 40, .40 caliber pistol, serial number F37068;
9. Bersa, model Thunder 45, .45 caliber pistol, serial number F87203;
10. Springfield, model XDS, 9mm pistol, serial number S3841064;
11. Squires Bingham, model 1911, .45 caliber pistol, serial number RIA1749616;
12. Taurus, model PT917, 9mm pistol, serial number TDO68413;
13. Sarsilmaz, 9mm pistol, serial number T1102-14G00678;
14. Bersa, model Thunder 380, .380 caliber pistol, serial number 716090;
15. Smith and Wesson, model M&P 40, .40 caliber pistol, serial number HSJ5404;
16. Grand Power SRO, 9mm pistol, serial number GBA0938;
17. Bersa, model BP9CC, 9mm pistol, serial number E28908;
18. Glock, model 19, 9mm pistol, serial number BBEF141;
19. FNH, model FNS9, 9mm pistol, serial number CSU0013415;
20. Ruger, model GP100, .357 caliber revolver, serial number 177-90494;
21. Springfield, 9mm pistol, serial number GM970936;
22. Springfield, model XDM, 9mm pistol, serial number MG420979;
23. Ruger, model Police Service Six, .357 caliber revolver, serial number 153-28202;
24. Ruger, model SR45, .45 caliber pistol, serial number 380-66127;
25. Smith and Wesson, model M&P 9, 9mm pistol, serial number HKK9077;
26. Glock, model 23, .40 caliber pistol, serial number BAEC028;
27. Browning, model Hi Power, 9mm pistol, serial number 419584;
28. MKE, model Kirikkale, .380 caliber pistol, serial number 7340746;
29. Taurus, model PT1911, .38 caliber pistol, serial number LBX04929; and
30. Smith and Wesson, model M&P 9, 9mm pistol, serial number HUS1418

The indictment alleges that on March 29, 2016, Jackson, Thomas and Coxson knowingly possessed the above listed stolen firearms.

Jackson is charged with being a felon in possession of the above stolen firearms after he was previously convicted of failure to comply with the order or signal of a police officer in the Trumbull County Court of Common Pleas in 1996.

Thomas is charged with being a felon in possession of the above stolen firearms after he was previously convicted of aggravated assault in 1995 and of robbery in 2001, both in the Trumbull County Court of Common Pleas.

“These are people forbidden by law from having firearms who went out and stole them,” Rendon said. “They will hold them accountable for their actions and we will continue to do all we can to keep firearms from illegally getting to our neighborhoods.”

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, 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 and the Warren Police Department.   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.

Three Ohio men were indicted for conspiring to transport explosives that could be used to crack safes, 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.

Indicted are: Frank Michael Susany, Jr., 52, of Boardman, Ohio; Robert Thomas Courtney, Jr., 44, of North Jackson; and James Patrick Quinn, 51, of Youngstown.

They are charged with with receipt and transportation of explosive materials, conspiracy and operation of an apparatus to interfere with the transmission of communications and signals.

Susany, Courtney and Quinn, from February through April 2013, conspired to receive and transport explosive materials that could be used to crack safes at jewelry stores and coin shops, according to the indictment.

It was part of the conspiracy that Susany, Quinn and Courtney would break into jewelry stores and coin stores to steal valuable items; that the money obtained by selling the stolen items would be used to buy explosive materials; and that once they obtained the explosive materials, they would use the materials to crack safes at other jewelry stores and coin shops, according to the indictment.

On April 19, 2013, Susany possessed and used a device that jammed cellular telephone communications and store alarm systems connected to cellular back-ups to disable a coin store’s alarm system, according to the indictment.

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.

The investigation preceding the indictment was conducted by the Federal Bureau of Investigation.   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.

A Cleveland man was indicted in federal court for possessing with intent to distribute heroin, fentanyl and cocaine, as well as illegally operating a drug house and having a firearm, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Kristopher L. Courtney, 39, was named in the five-count indictment.

Courtney possessed fentanyl, heroin and cocaine on Sept. 2, with the purpose of the distributing the drugs. He also possessed a Mossberg 20-gauge shotgun despite numerous felony convictions which prohibited from having a firearm. He also controlled 2973 East 130th Street in Cleveland for the purpose of distributing heroin, fentanyl and cocaine, 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.

This case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by 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 30-count indictment was unsealed today, charging a dozen people with conspiring to distribute cocaine throughout Greater 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.

Indicted are: Darrien Smith, 43, of South Euclid; Brandon McKinnie, aka Fat B, 31, of University Heights; Joseph Martin, aka Joe Caddy, 31, of Cleveland; Tristan Ingram, 28, of Parma; Robert Serina, aka Bobby Champagne, 36, of Cleveland; Wesley Ely, 39, of Parma; Christine Hoenie, aka Cali Miles, 34, of Cleveland; Ben May, 23, of Noblesville, Ind.; Luis Cabrera, 27, of Cleveland; Francisco Sanchez, 34, of Brook Park; Kenneth Paden, aka Chop, 38, of Cleveland; and Clifton Coleman, 55, of South Euclid.

Smith obtained large amounts of cocaine and sold it to McKinnie, who in turn sold it to Martin, who sold the cocaine to Ingram. Ely, Cabrera, Sanchez and Paden purchased cocaine from Ingram for distribution. Hoenie arranged cocaine sales for Serina, according to the indictment.

The conspiracy took place between 2013 and 2014, according to the indictment.

This case is being prosecuted by Assistant U.S. Attorneys Margaret Sweeney and Michelle Baeppler following an investigation by the Northern Ohio Law Enforcement Task Force.

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.

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 Cleveland man was sentenced to 14 years in prison for trafficking three teenaged girls, 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.

Ronnie Pratt, 22, trafficked three underage girls. He did this by taking photos of his girls and posting the photos on www.backpage.com. Pratt handled all text communications with potential customers and transported the girls to “dates.” He usually kept about half the money they were paid for commercial sex acts, according to court documents.

One of the girls was 13 when she began working for Pratt. He had a gun that he used to intimidate at least one of the girls, according to court documents.

The conduct took place between July and November 2015.

“This defendant made his living taking advantage of runaways,” Rendon said. “He pushed girls as young as 13 into events that will take them a lifetime to overcome.  His sentence, at the highest end of the applicable sentencing guidelines range, appropriately reflects the incredible damage he has done and the just punishment for his crimes.” 

"While Mr. Pratt will serve 14 years for his crimes, his young victims will be affected for a lifetime," Anthony said. "Law enforcement will continue to assist victims of human trafficking in obtaining the support they need and ensuring individuals like Pratt are brought to justice." 

This case is being prosecuted by Assistant U.S. Attorneys Bridget M. Brennan and Carmen Henderson following an investigation by the Federal Bureau of Investigation.

The U.S. Attorney’s Heroin and Opioid Task Force will be honored later this year with the Attorney General’s Award, the highest honor given by the Justice Department.

The Task Force will receive the Attorney General’s Award for Outstanding Contributions to Community Partnerships for Public Safety. This award recognizes outstanding achievement in the development and support of community partnerships designed to address public safety within a community. The award recognizes the significant contributions of citizens and organizations that have assisted the Department in the accomplishment of these programs.

The U.S. Attorney’s Heroin and Opioid Task Force was established in 2013 to address the region’s expanding epidemic. The group brings together a diverse group of stakeholders, including law enforcement, the medical community, people in recovery, treatment professionals, judges, public health professionals, educators and others. It focuses on solutions from four perspectives: law enforcement; education and prevention; healthcare policy; and treatment.

Successes to which members of the group have contributed include: working to make Narcan more readily available; presentations to tens of thousands of parents, students and other members of the community at hundreds of town hall meetings and schools; increased training for doctors and other medical professionals about the dangers of opioids; the creation of a heroin-involved death investigation team that treats overdoses as crime scenes, with the goal of filing enhanced criminal charges for dealers when appropriate; and working to increase the availability of drug treatment, among others.

“It is easy to become discouraged about the wave of death and pain that opioids and heroin bring to our community,” said U.S. Attorney Carole Rendon, who chairs the Task Force. “But I know the incredible efforts of all the members of this team make a difference on a daily basis. This approach has become a national model and I know, through hard work, dedication and persistence, we will eventually overcome this threat.”

This comprehensive approach has served as a model and is being replicated by several U.S. Attorney’s Offices around the country.

Members of the Task Force include the Cleveland Clinic, the Cuyahoga County Sheriff’s Department, MetroHealth Medical Center, Cuyahoga County Common Pleas Court, the Cuyahoga County Prosecutor’s Office, the Ohio Attorney General, Orca House, WKYC Channel 3, the Cleveland Division of Police, the DEA, the FBI, the Ohio State Medical Board, the Ohio State Pharmacy Board, the Cuyahoga County Board of Health, the Cuyahoga County Medical Examiner, University Hospitals, the ADAMHS Board and others.

While scores of people have made significant contributions to this effort, the number of people who can be individually honored is capped at 15. Those people are:

• Philip Angelo, Cuyahoga County Sheriff’s Department
• Vincent Caraffi, Cuyahoga County Board of Health
• Todd DeKatch, Supervisory Special Agent, Federal Bureau of Investigation
• Dr. Thomas Gilson, Cuyahoga County Medical Examiner
• Gary Gingell, Commander, Cleveland Division of Police
• Dr. Jason Jerry, Cleveland Clinic
• Aaron Marks, member of the recovery community
• Keith Martin, Resident Agent in Charge, Drug Enforcement Administration
• Judge David Matia, Cuyahoga County Court of Common Pleas
• Dr. Joan Papp, MetroHealth Medical Center
• Joseph M. Pinjuh, U.S. Attorney’s Office
• Hugh Shannon, Cuyahoga County Medical Examiner’s Office
• Judge Joan Synenberg, Cuyahoga County Court of Common Pleas
• Craig A. Tame, U.S. Attorney’s Office
• Mike Tobin, U.S. Attorney’s Office

The Attorney General’s Award Ceremony will be held on Thursday, November 10, 2016, at 1:30 p.m. at DAR Constitution Hall, 1776 D Street, NW, Washington, DC, 20006. 

A Mexican national was charged with possessing more than six pounds of heroin and two pounds of cocaine, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Claudia Cazarez-Quintero, 37, was charged with one count each of possession with intent to distribute heroin and cocaine. Quintero possessed three kilograms of heroin and one kilogram of cocaine on Aug. 17, 2016, 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 Duncan Brown following an investigation by the Northern Ohio Law Enforcement Task Force and the Westlake 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.

The Department of Justice announced today that Ruffing Montessori School, in Rocky River, has entered into an agreement to make significant changes in its policies for students with disabilities, U.S Attorney Carole Rendon said.

The school has also agreed to pay $45,000 in compensation to three families whose children were disenrolled from Ruffing, and a civil penalty of $3,000.

The agreement, which must still be approved by the U.S. District Court for the Northern District of Ohio, resolves allegations by the United States that Ruffing failed to comply with the Americans with Disabilities Act when it disenrolled a child with autism, and two other students.  The United States alleged that Ruffing did not attempt to make reasonable modifications to its program for these children before deciding that they could not continue as students at the school.

Under the agreement, Ruffing’s staff will be trained on how to educate children with disabilities within the Montessori philosophy.  The school will also revise its non-discrimination policies to cover children with disabilities, and for a three-year period will report to the Department of Justice on how it handles applications from students with disabilities.  The school will also report on how it responds to requests for modifications from children with disabilities, and on any students with disabilities who leave the school. 

“This settlement protects the rights of students with disabilities to access the educational opportunities offered by private schools, including Montessori schools,” Rendon said. “This settlement is an important reminder that the ADA’s obligations extend to private schools and their treatment of students with disabilities. Under the ADA, private schools must ensure that they are not screening out students on the basis of disability or making decisions  based on stereotypes about students with disabilities.”

A criminal information was filed charging Aaron M. Contreras, 34, of Fostoria, with embezzlement of union funds.                

Contreras, while working as financial secretary of a labor union, illegally embezzled approximately $42,700 from the union during 2015. He prepared a false financial report to conceal the embezzlement. Including ATM fees, the loss to the union was $43,293, according to the information.

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 U.S. Department of Labor, Office of Labor-Management Standards, in Cleveland.  The case is being handled by Assistant United States Attorney Tracey B. 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 Medina man was named in a 22-count indictment, charged with stealing approximately $275,000 from his employer and using the money to pay for a country club membership, vehicles and purchases at Victoria’s Secret and GNC, law enforcement officials said.

Brian K. Stepp, 50, was charged with multiple counts of conspiracy to commit wire fraud, wire fraud, making false statements and other charges. Rachel M. Penn, 41, of Wellington, was also indicted on charges of conspiracy to commit wire fraud and wire fraud.

“These defendants used this company’s coffers like their own personal bank, stealing from their employer to provide for a lavish lifestyle,” U.S. Attorney Carole S. Rendon said.

“These two conspired in a variety of fraudulent financial schemes to steal money for car and country club membership purchases and exorbitant retail purchases,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue to root out financial fraudsters and hold them accountable for their criminal actions.”

Stepp and Penn worked together at Variety Contractors, Inc., a company based in Medina County that provided general contracting services for large public and commercial retail construction projects in Ohio and other states.

Stepp joined the company as vice president and eventually was promoted to acting president, although the company owner retained ultimate decision-making authority. Penn worked in the company’s accounting department. Her duties included reviewing expense claims submitted by employees and issuing reimbursement checks, according to the indictment.

Stepp and Penn conspired together between February 2014 and May 2015 to defraud Variety Contractors.

Stepp incorporated S&S Kelsey LN, a shell company that did not engage in any actual business. He submitted a variety of fake invoices from S&S and other vendors to Variety Contractors of goods and services that were not provided. Stepp and Penn caused Variety Contractors to make payments on those fraudulent invoices, according to the indictment.

For example, in September 2014, a check request for $31,500 was made for payment to G.C.I. for “Deposit for Exterior Metal Panels”. Three days later, Penn issued a check in the same amount made payable to Ganley, which Penn knew that Stepp used to partially pay for a 2015 Chevy Silverado pickup truck that he purchased in his wife’s name, according to the indictment.

Stepp also fraudulently used a company credit card to pay for personal expenses, such as membership and related fees at Weymouth Country Club, payments made to purchase vehicles to himself and his family, local hotel charges, legal fees, and charges at stores including Victoria’s Secret and GNC, according to the indictment.

The loss to Variety Contractors was approximately $275,000, according to the indictment.

Stepp also made numerous false statements in attempting to get several loans, according to the indictment.

This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Federal Bureau of Investigation.

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.

An indictment 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 29-count federal indictment was unsealed charging the former president of the Steelworkers Local 5000 with stealing hundreds of thousands of dollars from the labor union.

David R. Sager, 58, of Gibsonburg, was indicted on nine counts of embezzlement or theft from a labor union, 18 counts of mail fraud, one count of obstruction of justice and one count of making false statements to law enforcement.

“This defendant betrayed the union membership he promised to represent,” said U.S. Attorney Carole S. Rendon.

Local 5000 is based in Middelburg Heights and a subordinate organization of the United Steelworkers union. It represented approximately 100 employees working for private companies in and around the Great Lakes. Sager served as president from 1999 through April 2016, according to the indictment.

Local 5000 went on strike in 2009 after failing to reach a contract agreement with a company identified in the indictment as Company 2. The company proposed eliminating the position of contract coordinator, which Sager held. The union membership did not vote on the strike. Local 5000 took steps to establish a Strike Fund – designed to provide financial relief to striking members, based on their need – with Sager and two other union officials as the signatories on the bank account, according to the indictment.

In order to claim Strike Fund benefits, members had to submit a voucher and a copy of a bill. That voucher was then reviewed by a committee on which Sager served. Once approved, the voucher and documentation was forwarded to the Strike Fund signatories for approval. If approved, a union official identified in the indictment as Labor Official 2 issued checks as payment on the vouchers, according to the indictment.

Sager submitted more than $185,000 in vouchers to receive Strike Fund benefits for his family’s expenses between 2010 and 2012. He and his wife had nearly $160,000 in income during the same time period. While collecting Strike Fund benefits, Sager made and caused to be made numerous retail purchases of non-necessity items, such as dining out at several restaurants and the purchase of Carrie Underwood concert tickets, according to the indictment.

The strike ended in 2012. A year later, Company 2 reinstated Sager as a wheelsman and assigned him to work aboard a vessel. He received personal leave and then did not return to work on the vessel. Company 2 terminated his employment, according to the indictment.

On May 16, 2013, an employee of Company 5 wrote an email to some employees which noted, “We are on the verge of losing Local 5000 if we can’t come up with an arrangement an I am afraid (another union) will pick up the pieces and become the sole course of crew manpower on the lakes,” according to the union.

On July 11, 2013, Companies 4 and 5 and Local 5000 signed a joint employment trust agreement, which they renewed a year later. Company 3 refused to participate in the agreement and told Sager and others that it violated the Taft-Hartley Act, according to the indictment.

On May 28, 2014, an employee of Company 3 sent an email to employees stating: “You will notice that [Local 5000 is] coming back at us for the Joint Employment Trust [aka Sager’s pay],” according to the indictment.

In 2013, Companies 4 and 5 paid approximately $77,000 to Local 5000 through the trust agreement, and Sager received approximately $56,061 payable from Local 5000 checks. In 2014, Companies 4 and 5 paid approximately $57,750 to Local 5000 through the trust agreement, and Sager received approximately $73,418 payable from Local 5000 checks. In 2015, Companies 4 and 5 paid approximately $77,000 to Local 5000 through the trust agreement, and Sager received approximately $74,003 payable from Local 5000 checks, according to the indictment.

This case is being prosecuted by Assistant U.S. Attorney Antoinette T. Bacon following an investigation by the U.S. Department of Labor – Office of Inspector General, the U.S. Department of Labor's Office of Labor Management Standards and the Internal Revenue Service.

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.

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.

The City of Cleveland, Cleveland Division of Police, the Department of Justice, the Monitoring Team, and the Cleveland Police Commission have now come to the point in the police reform process where it is time for community feedback on the CPD’s revised Use of Force policies. We are collectively hosting two community roundtables, one on the East Side and one on the West Side, each covering the same content. You are invited to attend one of the roundtables:

Eastside Roundtable RSVP

Westside Roundtable RSVP

5:30- 8:30pm, Thursday, September 15th

5:30-8:30pm, Tuesday, September 20th

Jerry Sue Thornton Center

Urban Community School

2500 East 22nd Street

4909 Lorain Avenue

Cleveland, OH 44115

Cleveland, OH 44102

If you are interested in attending a community roundtable, please use the RSVP links above or send an RSVP to the Monitoring Team at info@clevelandpolicemonitor.com. The roundtables will include an overview of the Use of Force policy, with an opportunity for small group discussions for community members to inform the policies.

You are invited to read the policies by going to the Monitoring Team’s website. You may also engage in the process by using our online community feedback form to submit any thoughts on the policies by visiting the Monitoring Team’s website.

We hope you strongly consider being part of this important conversation about how we can work together to create a use of force policies consistent with the goals and interests of the Cleveland community.

This outreach is a part of our ongoing effort to engage the Cleveland community in the police reform process. Earlier this year, we sought community input on the Cleveland Division of Police body-worn camera policy, the mission statement, and several other key policies. We want to thank everyone who participated for their engagement with and contributions to the discussion surrounding police reform under the federal Consent Decree in Cleveland.

We look forward to hearing your thoughts on the Use of Force Policy and seeing you at one of the community roundtables.

A Cleveland man was indicted for selling heroin, 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.

Timothy Smith, 49, was indicted on one count of possession with intent to distribute heroin. He had more than 67 grams of heroin on December 15, 2015, according to the indictment.

This case is being prosecuted by Assistant U.S. Attorney Marisa Darden following an investigation by the FBI.

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.

An indictment 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 Youngstown man sentenced to more than 10 years in prison for firearms violations, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Brian K. Bellard, 43, was arrested on Oct. 16, 2015 after Youngstown police responded to a call about an armed man arguing with people outside the Eastside Civic Center. Police found Bellard with a Smith and Wesson, model SD40VE, .40 caliber pistol, and ammunition, according to court documents.

Bellard forbidden from possessing firearms because of previous felony convictions dating back to 1992. Those convictions included felonious assault and domestic violence, according to court documents.

He pleaded guilty last year to being a felon in possession of a firearm. He was sentenced to 125 months in federal prison.

This case was prosecuted by Assistant U.S. Attorney Jason M. Katz following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Youngstown Police Department.   

A federal grand jury returned a two-count indictment charging Rickie Gonzalez, 51, of Campbell, and Michael Zarlingo, 55, of Struthers, with bank robbery.

Count 1 of the indictment alleges that on or about April 18, 2016, Rickie Gonzalez robbed a Huntington Bank in Boardman.

Count 2 of the indictment alleges that on or about April 28, 2016, Michael Zarlingo and Gonzalez robbed a PNC Bank in Youngstown.

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 Federal Bureau of Investigation, the FBI Violent Crimes Task Force, the Youngstown Police Department, the Boardman Police Department and the Hubbard 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 grand jury returned a one-count indictment charging Richard Joseph Beris, 22, and Alexander Nathaniel Penn, 41, both of Cleveland, with one count of aiding and abetting bank robbery, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

The indictment alleges that Beris and Penn robbed the Citizens Bank, located at 5775 Chevrolet Boulevard in Parma, a federally insured financial institution, on August 4, 2016. 

If convicted, the defendant’s sentence will be determined by the court after review of factors unique to his 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 case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould, and was investigated by the Federal Bureau of Investigation and the Parma 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 four-count indictment was filed in federal court charging a Cleveland man with distributing heroin and fentanyl, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Gino Martin, 27, possessed with intent to distribute heroin and fentanyl and also distributed heroin and fentanyl. The conduct took place between June and August, according to the indictment.

Prosecutors are also seeking to forfeit nearly $7,800 seized during the investigation.

This case is being prosecuted by Assistant U.S. Attorney Margaret Sweeney following an investigation by the Northern Ohio Law Enforcement Task Force and the Euclid Police Department.

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.

An indictment 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 Youngstown man was charged in a with firearms and narcotics violations, including selling heroin that resulted in a fatal overdose, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Lebron Charles Bunkley, 37, is named in the six-count indictment. The charges include distribution of heroin, cocaine and crack cocaine. The indictment also allegeds that on May 14, 2016 in Youngstown, a person fatally overdosed on heroin sold by Bunkley.

Bunkley is also charged with possessing a Walther, model P22, .22 pistol, an FIE, model Tital, .25 pistol and ammunition on May 18, despite numerous prior felony convictions, including assault, possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug crime and being a felon in possession of a firearms, according to the indictment.

Bunkley is also charged with possessing the above-mentioned firearms and ammunition in furtherance of the aforementioned drug trafficking crimes, according to the indictment.

“This defendant has a long history of crime, which has now expanded to include selling drugs that resulted in the death of another person,” Rendon said.

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 Mahoning Valley Law Enforcement Task Force, the Federal Bureau of Investigation and 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.