Northern District of Ohio

A Cleveland Heights man was indicted for preparing false tax returns and making false statements to law enforcement, said Acting U.S. Attorney Carole S. Rendon and Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation’s Cincinnati office.

Immanuel Roddy, 34, operated a tax preparation called Roddy Solutions. He referred to himself in advertising materials as “Tax Beast” and obtained tax documents from clients, according to the indictment.

Roddy prepared false tax returns for his clients in which he claimed false tax credits or false business expenses, according to the indictment.

“Mr. Roddy owned a tax preparation business that blatantly ignored the tax laws by preparing false tax returns,” Enstrom said. “Dishonest return preparers use a variety of methods to cheat the government, including falsifying information on the tax returns to generate larger refunds for their clients.”

This case is being prosecuted by Assistant U.S. Attorney Antoinette Bacon following an investigation by IRS-CI.

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.            

A Richfield Township man was sentenced to two years in prison for illegally dealing firearms after he sold approximately 300 firearms over a three-year period, said Acting U.S. Attorney Carole S. Rendon and ATF Acting Special Agent in Charge Brad Earman.

Timothy J. Cassinger, 49, was not a licensed firearms dealer but sold approximately 300 firearms for profit between June 2012 and October 2015. He was given a warning letter by ATF to cease and desist or get a license to sell firearms. In response to the letter, he continued to buy and sell firearms. Many of the weapons were purchased from federal firearms licensees and then resold by Cassinger at gun shows or online, according to court documents.

Eleven firearms originally purchased by Cassinger were intercepted by Spanish authorities in September 2014, on a ship destined for Beirut, Lebanon . Other firearms purchased by Cassinger were later recovered in Cleveland, Columbus, East Cleveland, New York City and other cities, according to court documents.

“The firearms sold by this defendant eventually made their way around the state, around the country and around the world,” Rendon said. “Those who engage in the business of selling firearms need to be licensed.”

“ATF’s core mission is reducing violent crime in our country,” said ATF Acting Special Agent in Charge Brad Earman.  “When individuals illegally sell firearms, they compromise the ability of law enforcement to trace firearms and solve crimes.” 

This case is being prosecuted by Assistant U.S. Attorney Kelly L. Galvin following an investigation by the ATF.

Eric V. Bartoli, who was indicted in 2003 and was a fugitive for more than a decade, pleaded guilty to defrauding hundreds of investors out of millions of dollars in the 1990s, law enforcement officials said.

Bartoli, 61, is scheduled to be sentenced Nov. 9 after pleading guilty to eight counts, including conspiracy, securities fraud, sale of unregistered securities, wire fraud, mail fraud and attempted income tax evasion.

The guilty plea was announced by Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the FBI, and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

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 is finally being held accountable for his crimes, more than two decades after he started stealing millions of dollars,” Rendon said. “The fact that he will finally be sentenced for his actions is a tribute to all who have worked on this case, who never stopped pursuing justice for the victims.”

“After years of living on the run, Mr. Bartoli is accepting responsibility for swindling individuals out of large sums of money - some their entire life savings,” Anthony said. “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.”

“The investigation of Mr. Bartoli uncovered a multi-million dollar Ponzi scheme laced with a web of financial lies that left 800 investors in financial peril,” Entstrom said. “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. 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.”

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 Logan man was charged in federal court with stealing more than $308,000 from investors through a fraudulent horseracing venture and using the money to buy expensive clothes, vehicles and pay for gambling expenses, law enforcement officials said.

The charges were announced by U.S. Attorney Carole Rendon, Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Cincinnati Field office, and Craig Wisniewsky, Special Agent in Charge of the Secret Service’s Cleveland office.

Jonathan Pippin, 29, was charged via criminal information with two counts of wire fraud and one count of money laundering.

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

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

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

Pippin used the investors’ money to enrich himself and pay personal expenses, such as the purchase of a Cadillac Escalade, tickets to sporting events, gambling expenses, rent and expensive clothing, according to the information.

Four investors lost a combined $308,305, according to the information.

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

“Investment fraud schemes are often described as a house of cards,” Enstrom said.  “In this case, when the dust settled, the underlying structure fell apart and exposed the individual responsible."

“This case is another example of the success of the task force concept where multiple federal agencies bring expertise to an investigation resulting in a successful conviction,” Wisniewsky said.

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

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

A federal grand jury returned a two-count indictment charging Nicole M. Gates of Wickliffe, with false statements and fraud to obtain federal employees’ compensation, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio. 

The indictment alleges that Gates, a mail carrier employed by the U.S. Postal Service, falsely represented her physical limitations in connection with her receipt of workers’ compensation benefits. 

Assistant United States Attorney Megan R. Miller is prosecuting the case following an investigation by the U.S. Postal Service Office of Inspector General.

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

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

Two people who worked in the real estate business in the Toledo area were both sentenced to more than two-and-a-half years in prison for their roles in a $1.5 million conspiracy to defraud several banks, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigations.

Timothy R. Bradley, 41, now of Cary, N.C., and Martha E. Ednie, 54, of Toledo, were each sentenced to 30 months in prison.

Bradley was previously found guilty of one count commit bank fraud and 11 counts of bank fraud. Ednie was previously found guilty of one count commit bank fraud and 20 counts of bank fraud.

Bradley worked as a real estate agent working for various brokerages in the Toledo area, while Ednie was a mortgage broker who operated Apex Mortgage Company. Bradley and Ednie conspired with others, beginning in 2005, to obtain fraudulent mortgage loans by concealing the true purchase price from banks making the loans, according to court documents.

The true purchase price was represented by an “addendum” to the real estate contract, which lowered the purchase price. These addendums were signed near the time of closing and were concealed from the lenders. Unbeknownst to the lenders, they were loaning the home purchasers between 82 percent and 135 percent of each home’s value based on the adjusted addendum purchase price, according to court documents.

Bradley was listed as the real estate agent on the contracts and Ednie secured financing in her role as mortgage broker. Bradley and others attracted buyers to the scheme by advertising the properties as good sources of rental income and assuring cash back at closing, according to court documents.

The investigating agency in this case is the Internal Revenue Service-Criminal Investigations, Toledo.  The case is being handled by Assistant United States Attorney Gene Crawford.

A Garfield Heights woman was charged with theft of government property, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.

Joan Hall, 69, stole over $34,000 in Social Security Retirement and Survivor’s benefits to which she was not entitled. Hall fraudulently converted to her own use her deceased husband’s Social Security Retirement and Survivor’s benefits after he died.  As her husband’s representative payee, Hall was required to report her husband’s death to the Social Security Administration. She failed to report his death, and instead continued to receive benefits intended for her deceased husband, according to the information.

The United States Social Security Administration Office of the Inspector General conducted the investigation.  The case is being prosecuted by Special Assistant United States Attorney Lisa J. Sanniti.

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

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

A psychiatrist from Oregon, Ohio, pleaded guilty to tax evasion for not paying more than a half-million dollars in taxes, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

Sandra Vonderembse, 65, pleaded guilty to attempting to evade taxation or the payment thereof from 2005 through 2013. 

Vonderembse admitted that despite earning compensation in excess of $240,000 per year from 2009 through 2011 as a psychiatrist working for multiple businesses and the State of Ohio, she falsely claimed zero taxable income and zero tax owing for each of those years on federal tax returns.  In tax years stretching back to 2005, Vonderembse failed to pay taxes due on her income and filed tax returns falsely claiming taxable income as “None.”  From 2005 to 2011 she also had her earnings paid to nominee entities to conceal income from the IRS and sent fake financial instruments to the IRS in purported payment of her taxes, according to court documents.

Vonderembse faces a statutory maximum sentence of five years in prison.  She has agreed to pay restitution to the IRS in the amount of $565,000.

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, and 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 Internal Revenue Service-Criminal Investigation in Toledo.  The case is being handled by Assistant United States Attorney Noah P. Hood and Department of Justice Trial Attorneys Jack Morgan and Jeffrey McLellan.

A former Youngstown man was sentenced to more than three years in prison for crimes related to the purchase of a dozen homes in Mahoning County, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Steven D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.

R. Allen Sinclair, 52, of Suwanee, Georgia, was sentenced to 41 months in prison and ordered to pay approximately $830,000 in restitution. He pleaded guilty earlier this year to bank fraud.

Sinclair was the owner and operator of Newport Investments, LLC and Newport Development, Inc. in Youngstown. He advertised that the company was in the business of buying, renovating and selling residential real estate properties, according to court documents.

Sinclair, through his companies, solicited money from investors, promising them annual returns of about 10 percent and telling them their funds would be used for the acquisition and renovation of properties in Youngstown. Sinclair knew that the properties needed little or no renovation. Instead, he converted the money for his personal use, according to court documents.

Beginning in 2005, Sinclair acquired the 12 properties—in Youngstown, Canfield, Struthers and Austintown—through land trusts he created for each property. Sinclair fraudulently misled the sellers into believing the land trusts had assumed the mortgage payments. After making minimal monthly payments, Sinclair then stopped paying the mortgages and did not notify the sellers, who were unaware they were still obligated to the loans, according to court documents.

As a result, the properties went into foreclosure, causing substantial losses to the lenders and the federal agencies that insured them, according to court documents.

This case is being prosecuted by Assistant U.S. Attorneys Robert J. Patton and Suzana Krstevski Koch following an investigation by the Federal Bureau of Investigation, with assistance from the U.S. Department of Housing and Urban Development - Office of Inspector General and the Ohio Attorney General’s Office.

A Toledo grand jury returned a three-count indictment against Yahya Farooq Mohammad today, charging him with soliciting the murder of a federal judge, announced U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan.

McQuade was joined in the announcement by Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Field Division and U.S. Marshal Peter J. Elliott of the Northern District of Ohio.

Mohammad, 37, from the United Arab Emirates, was charged with attempted first degree murder of a federal officer, solicitation to commit a crime of violence and use of interstate commerce facilities in commission of murder for hire.

Mohammad was indicted last year on charges of conspiring with three other men to travel to Yemen to provide thousands of dollars to Anwar Al-Awlaki in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world.  That case remains pending and is assigned to U.S. District Judge Jack Zouhary of the Northern District of Ohio.

In the most recent charges, Mohammad is accused of soliciting someone to kidnap and murder Judge Zouhary.

On April 8, Mohammad allegedly told another inmate in the Lucas County Corrections Center in Toledo that he wanted Zouhary kidnapped and murder.  That inmate then introduced Mohammad to an undercover FBI employee, according to the indictment.

The indictment alleges that Mohammad told the inmate that he was willing to pay $15,000 to have Zouhary killed.  Mohammad also allegedly told the undercover employee that he could send a down payment through a mail courier or that the undercover could meet Mohammad’s wife in Chicago to pick up the money.  When asked when he wanted the murder committed, Mohammad stated: “The sooner would be good, you know,” according to the indictment.

On May 5, Mohammad’s wife, identified in the indictment as N.T., met the undercover agent at a post office in Bolingbrook, Illinois, and provided $1,000 in cash inside a white envelope, according to the indictment.

On May 11, Mohammad informed the inmate that the rest of the money for the murder was coming from Dubai to Texas to Chicago to N.T., and then to the undercover agent, according to the indictment.

According to the indictment, on May 16, the undercover agent and N.T. met, and the undercover agent showed N.T. a photograph that purported to be of Zouhary’s dead body.  The undercover agent told N.T. he needed the rest of the money owed to him.  N.T. said she would contact Mohammad and then she would contact the undercover agent, according to the indictment.

“According to the charges in the indictment, this defendant not only attempted to have a federal judge murdered, but he did so to obstruct justice in a terrorism case against him,” said U.S. Attorney McQuade.  “This prosecution seeks to hold the defendant accountable for attempting to victimize the judge and for trying to undermine our criminal justice system.”

“Conspiring to have a judge killed is not the way to avoid being prosecuted - now Mohammad will be held accountable for additional serious federal charges,” said Special Agent in Charge Anthony.  “The FBI will continue to work with our partners to ensure the safety of those that uphold the rule of law. “  

“Protecting the federal judiciary is our highest priority,” said U.S. Marshal Elliott.  “This is an example where we were able to work with our law enforcement partners to protect a judge and bring charges against a dangerous individual.”

The case is prosecuted by Assistant U.S. Attorneys Michael Freeman and Matthew Shepherd of the Northern District of Ohio following an investigation by the FBI.  The U.S. Attorney for the Northern District of Ohio has recused herself from this case. 

If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offenses and the characteristics of the violations.  Counts one and two of the indictment carry a maximum statutory penalty of 20 years in prison and count three carries a statutory maximum penalty of 10 years in prison.

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 information was filed charging Dimitar Trampevski, 28, of Toledo, with making a false entry or failure to make an entry in records by a federal firearms dealer, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.

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 case is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives in Toledo.

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 Tennessee man was sentenced to nearly 20 years in prison for traveling to Ohio to sexually exploit a 14-year-old, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.

David K. Turner, 24, of Knoxville, Tennessee, was sentenced to 238 months of prison after previously pleading guilty to a four-count indictment that charged him with sexually exploiting a minor, distributing a visual depiction of a minor engaged in sexually explicit conduct, coercing and enticing a minor, and traveling with the intent to engage in illicit sexual conduct.

“All forms of child exploitation are deeply troubling, and this case illustrated how quickly online child exploitation can lead to sexual exploitation said Acting United States Attorney Carole S. Rendon. “Mr. Turner coerced a girl that he knew was only 14 to perform sex acts on camera and then planned to take her across the country in the hope of further exploiting her. We commend the Canton and Massillon Police Departments and the FBI Canton Resident Agency in pursuing justice for the victim and her family."

The case was prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the Canton and Massillon Police Departments and the FBI Canton Resident Agency.

A Cleveland man was charged with conspiracy to distribute fentanyl, heroin and cocaine, law enforcement officials said.

Roland M. Smith, 42, was charged via criminal information with one count of conspiring to distribute at least 40 grams of fentanyl, 100 grams of heroin and 500 grams of cocaine.

The charges seek to forfeit a Kal-Tech .22 pistol and various sizes of ammunition seized on April 27, 2016.

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

If convicted, the court will determine the defendants’ sentence after a review of 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.  In most cases, it will be less than the maximum.

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

A Broadview Heights man was sentenced today to 30 months in prison for his role in the theft of more than $3.3 million from the Cuyahoga Heights School District, law enforcement officials said. 

Dominick Palazzo, 42, pleaded guilty earlier this year to one count of conspiracy to commit mail fraud and one count of conspiracy to commit money laundering.  His brother, Joseph M. Palazzo, was the Information Technology director of the Cuyahoga Heights School District. The Palazzos, along with David Donadeo and Dennis Boyles, conspired together to defraud the school district through dozens of fraudulent billings submitted to the Cuyahoga Heighs School District by sham companies that Dominick Palazzo, Donadeo and Boyles controlled, according to court documents. 

The thefts occurred over a period of four years.  The U.S. District Judge Benita Y. Pearson sentenced Dominick Palazzo to 30 months in prison, and ordered him to pay $3,333,448 in restitution to the Cuyahoga Heights School District.  Judge Pearson also ordered the forfeiture of $43,409.53 that law enforcement previously seized from bank accounts that Dominick Palazzo controlled or that Palazzo otherwise paid over voluntarily to the government toward this debt.

“This defendant, along with his brother and friends, stole millions of dollars from the children and taxpayers in Cuyahoga Falls,” said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio. “Their lengthy prison sentences appropriately reflect the severity of their offenses.”

“This investigation uncovered a multi-million-dollar embezzlement scheme laced with a web of financial lies that left a local school district in financial peril,” said Kathy A. Enstrom, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati Field Office.

“Dominick Palazzo violated the trust that the citizens and students of Cuyahoga Heights had placed in him by funding his personal account with their tax dollars,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The investigators are to be commended for uncovering this enormous fraud.”

Joseph Palazzo was employed as the Information Technology director of the Cuyahoga Heights School District until February 2011. He was responsible for managing the district’s IT Department, which included purchasing hardware and software and making other IT expenditures to benefit the district and its students, according to court documents.

Joseph Palazzo devised a scheme to divert millions of dollars of district funds to his personal use and the personal use of others. This scheme involved Joseph Palazzo submitting to the district for payment false invoices that purported to be for IT-related goods and services purchased from legitimate companies by the district’s IT Department to benefit the district. He represented that the invoices he submitted were legitimate, and he approved the false invoices himself or forged the signature of another in the approval section, according to the information.

However, these invoices were for services never performed, fictitious software and hardware, and software and hardware never received or already purchased by the district from another source. The companies named on the invoices did not supply such goods to or perform such services for the district and were nothing more than “shells,” according to court documents.

Joseph Palazzo’s actions caused the district to issue checks to these shell vendor corporations, which were established and owned by Dominick Palazzo, Boyles and Donadeo. The shell vendor corporation owners kept approximately half of the stolen money themselves and funneled the remainder of the money back to Joseph Palazzo for his personal use, according to court documents.

These shell companies included Laptops and More, Inc., and Impact Global, LLC, which were established by Dominick Palazzo.

The district sustained a total loss of at least $3,333,448, as a result of the fraudulent scheme according to the information.

Joseph Palazzo was previously found guilty and is currently serving a sentence of more than 11 years in prison. Boyles was sentenced to more than two years in prison and Donadeo’s case is pending.

This case was prosecuted by Assistant United States Attorney Rebecca Lutzko following an investigation by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation.

A man from Warren, Ohio, was sentenced to 45 months in prison for defrauding banks out of approximately $2.5 million through fraudulent short sales of gas stations in the Youngstown area and by other means, law enforcement officials said.

Shaukat Sindhu, 56, previously pleaded guilty to two counts of conspiracy to commit bank fraud, one count of corrupt interference with the administration of the Internal Revenue Service, and one count of marriage fraud.

“This defendant acted like the rules did not apply to him,” Acting U.S. Attorney Carole Rendon said. “He engaged in multiple fraud schemes, using his friends and family members without regard to the consequences.  This sentence should send a message that fraud and deceit will be punished in the Northern District of Ohio.”

“Attempting to skirt your income tax obligations by using multiple Social Security numbers, dealing in cash, and concealing income and assets in the names of nominees is a recipe for criminal prosecution,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

"Sindhu engaged in numerous illegal financial transactions in an effort to enrich himself.  He will be residing in a prison cell instead of his fraudulently obtained 13 bedroom home.  The FBI, along with our partners, will continue to root out fraudsters and hold them accountable for their deceitful actions," said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.

Sindhu owned several gas stations and other commercial property, but failed to make mortgage payments on these properties. Sindhu and others defrauded First Midwest and Consumers National banks by making false and misleading representations about ownership of the properties between 2008 and 2014, using a false identity, and creating a fictional Middle Easter investor that Sindhu used to create the illusion there was an independent buyer for the properties at a significant discount. Tahir Iqbal of Crown Point, Indiana, acted as a straw buyer for Sindhu in a short sale, enriching Sindhu by reducing or eliminating the principle owned on the properties, according to court documents.  Iqbal was sentenced to 12 months and 1 day for his role in the bank fraud conspiracy.

Iqbal also served as a straw buyer for Sindhu for a 16,800-square foot, nine-bedroom, 13-bathroom home in Oak Brook, Illinois. That home was forfeited as part of the plea agreement.

This case was prosecuted by Assistant U.S. Attorneys Chelsea Rice, Adam Hollingsworth and James Morford following an investigation by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations and U.S. Immigrations and Customs Enforcement.

The leader of a human trafficking organization and a co-defendant were sentenced to prison today for their roles in luring Guatemalan minors and adults to the United States under false pretenses and then using threats of physical harm to compel them to work on egg farms in Ohio.  The sentences were announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; Acting 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.

Aroldo Castillo-Serrano, 33, was sentenced to 188 months in prison and Ana Angelica Pedro-Juan, 22, was sentenced to 10 years in prison.  U.S. District Judge James G. Carr of the Northern District of Ohio also ordered the defendants to pay a total of $67,230 in restitution, jointly and severally, to the victims.

Castillo-Serrano pleaded guilty on Aug. 24, 2015, to conspiracy to commit forced labor, forced labor, witness tampering and alien harboring charges.  Pedro-Juan pleaded guilty on Dec. 14, 2015, to conspiracy to commit forced labor.

According to documents filed in the case and admissions made in court in connection with the guilty pleas, the defendants and their associates recruited workers from Guatemala, some as young as 14 or 15 years old, by falsely promising them good jobs and a chance to attend school in the United States.  The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and to work at physically demanding jobs at Trillium Farms for up to 12 hours a day for minimal amounts of money.  The work included cleaning chicken coops, loading and unloading crates of chickens, debeaking chickens and vaccinating chickens.  Eight minors and two adults were identified in the indictment as victims of the forced labor scheme. 

Castillo-Serrano recruited the victims, smuggled them into the United States, oversaw money transfers and issued threats to ensure compliance.  Pedro-Juan falsely represented herself to government officials as a family friend of the minor victims in order to have them released to her custody.  She also oversaw the trailers where the victims were housed and arranged for their wages to be transferred to co-conspirators in Guatemala and elsewhere.

“These defendants preyed on the hopes of vulnerable young workers, turning their dreams into a nightmare by exploiting their undocumented status and using fear to compel them to work long hours for minimal pay,” said Principal Deputy Assistant Attorney General Gupta.  “This case demonstrates the Justice Department’s firm commitment to combating labor trafficking by holding traffickers accountable and restoring the rights, freedom and dignity of victims.  I commend the strong partnerships that contributed to dismantling this human trafficking organization.”

The Northern District of Ohio is one of six districts selected as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor.  Designated ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor; international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.

“These defendants forced minors to work around the clock and live in inhumane conditions, while threatening them and their relatives,” said Acting U.S. Attorney Rendon.  “Today’s prison sentence underscores the severity of these human trafficking cases, but also should serve as a reminder that these cases happen all around us in plain sight.”

“These defendants preyed on the desire of the children and their parents for a better life by offering freedom on American soil only to be imprisoned in servitude,” said Special Agent in Charge Anthony.  “These actions cannot be tolerated.  Law enforcement remains vigilant in detecting and disrupting these human trafficking rings.”

A third co-defendant, Conrado Salgado-Soto, was sentenced on April 11, 2016, to 51 months in prison.  Three more defendants, Conrado Salgado-Borbon, Bartolo Dominguez and Pablo Duran Jr., pleaded guilty to immigration offenses in connection with this case and were sentenced to six, 12 and 15 months in prison, respectively.  

The investigation is ongoing.  The case is being investigated by the FBI Cleveland Division’s Mansfield Resident Agency, U.S. Immigration and Customs Enforcement-Homeland Security Investigations, the Marion Police Department and the Marion County Sherriff’s Office.  The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio.

The leader of a human trafficking organization and a co-defendant were sentenced to prison today for their roles in luring Guatemalan minors and adults to the United States under false pretenses and then using threats of physical harm to compel them to work on egg farms in Ohio.  The sentences were announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; Acting 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.

Aroldo Castillo-Serrano, 33, was sentenced to 188 months in prison and Ana Angelica Pedro-Juan, 22, was sentenced to 10 years in prison.  U.S. District Judge James G. Carr of the Northern District of Ohio also ordered the defendants to pay a total of $67,230 in restitution, jointly and severally, to the victims.

Castillo-Serrano pleaded guilty on Aug. 24, 2015, to conspiracy to commit forced labor, forced labor, witness tampering and alien harboring charges.  Pedro-Juan pleaded guilty on Dec. 14, 2015, to conspiracy to commit forced labor.

According to documents filed in the case and admissions made in court in connection with the guilty pleas, the defendants and their associates recruited workers from Guatemala, some as young as 14 or 15 years old, by falsely promising them good jobs and a chance to attend school in the United States.  The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and to work at physically demanding jobs at Trillium Farms for up to 12 hours a day for minimal amounts of money.  The work included cleaning chicken coops, loading and unloading crates of chickens, debeaking chickens and vaccinating chickens.  Eight minors and two adults were identified in the indictment as victims of the forced labor scheme.

Castillo-Serrano recruited the victims, smuggled them into the United States, oversaw money transfers and issued threats to ensure compliance.  Pedro-Juan falsely represented herself to government officials as a family friend of the minor victims in order to have them released to her custody.  She also oversaw the trailers where the victims were housed and arranged for their wages to be transferred to co-conspirators in Guatemala and elsewhere.

“These defendants preyed on the hopes of vulnerable young workers, turning their dreams into a nightmare by exploiting their undocumented status and using fear to compel them to work long hours for minimal pay,” said Principal Deputy Assistant Attorney General Gupta.  “This case demonstrates the Justice Department’s firm commitment to combating labor trafficking by holding traffickers accountable and restoring the rights, freedom and dignity of victims.  I commend the strong partnerships that contributed to dismantling this human trafficking organization.”

The Northern District of Ohio is one of six districts selected as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor.  Designated ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor; international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.

“These defendants forced minors to work around the clock and live in inhumane conditions, while threatening them and their relatives,” said Acting U.S. Attorney Rendon.  “Today’s prison sentence underscores the severity of these human trafficking cases, but also should serve as a reminder that these cases happen all around us in plain sight.”

“These defendants preyed on the desire of the children and their parents for a better life by offering freedom on American soil only to be imprisoned in servitude,” said Special Agent in Charge Anthony.  “These actions cannot be tolerated.  Law enforcement remains vigilant in detecting and disrupting these human trafficking rings."

A third co-defendant, Conrado Salgado-Soto, was sentenced on April 11, 2016, to 51 months in prison.  Three more defendants, Conrado Salgado-Borbon, Bartolo Dominguez and Pablo Duran Jr., pleaded guilty to immigration offenses in connection with this case and were sentenced to six, 12 and 15 months in prison, respectively.

The investigation is ongoing.  The case is being investigated by the FBI Cleveland Division’s Mansfield Resident Agency, U.S. Immigration and Customs Enforcement-Homeland Security Investigations, the Marion Police Department and the Marion County Sherriff’s Office.  The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio.

Anthony J. Natale, of Warren, pleaded guilty today to one count of conveying false information related to the use of a weapon of mass destruction, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.

Natale is scheduled to be sentenced on Sept 27.

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.

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. 

Xin Franco Fan, 40, and Rex Xu Yu, 41, two Chinese nationals, were charged via criminal information with conspiracy to commit wire fraud and honest services wire fraud for defrauding Goodyear Tire & Rubber Company out of at least $1.5 million, said Acting U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.

Fan and Yu 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 the information.

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 the information.

“These two defendants stole $1.5 million from Goodyear over several years,” Rendon said. “Goodyear is to be commended for promptly reaching out to law enforcement when they uncovered this scheme. Because of their quick action, these men will pay for their crimes.”

“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.

If convicted, the court will determine the defendants’ sentence after a review of 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.  In most cases, it will be less than the maximum.

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

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

A Steubenville man forfeited more than $1.5 million and was sentenced to eight months of house arrest for operating a gambling business, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Ohio Attorney General Mike DeWine.

Timothy Smith, 53, pleaded guilty earlier this year to one count of conducting an illegal gambling business. He was sentenced to eight months of house arrest with electronic monitoring and ordered to forfeit $1,526,104.

Smith operated Timmy’s, a sports wagering business in Steubenville where people could wager on professional and amateur sporting events. Employees at Timmy’s displayed dry erase boards and paper fliers showing high school, college and professional sporting events and associated point spreads. Confidential sources placed several bets on games in 2013 and 2014, according to court documents.

This case was prosecuted by Assistant U.S. Attorney David Toepfer and James Morford following an investigation by the Ohio Bureau of Criminal Investigation, the Steubenville Police Department and the FBI.

Donald Guthrie, Jr., 56, of East Liverpool, was charged with receiving visual depictions of real minors engaged in sexually explicit conduct and possession of child pornography, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.

Guthrie received numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between June and August 2014,  On November 6, 2015, Guthrie was in possession of a Gateway LX series computer that contained child pornography, 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 Carol M. Skutnik.  The case was investigated by the Department of Homeland Security, Cleveland 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 22-count indictment was returned charging a Cleveland Heights man with identity theft and tax violations, said Acting U.S. Attorney Carole S. Rendon and Kathy A Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

Darryl E. Farmer, 44, was indicted on one count of conspiracy to defraud, nine counts of false tax claims, eight counts of aiding in the preparation of false tax returns, two counts of wire fraud and two counts of aggravated identity theft.

Farmer held himself out as a neighborhood tax preparer who paid recruiters a “referral fee” to provide him identifications and personal identifiers of others. Farmer used this information to file false tax returns, including claiming tax credits for businesses that did not exist, according to the indictment.

Farmer also opened multiple personal and business bank accounts, which he controlled, in the names of these various people in order to deposit the refunds from the tax returns he filed, according to the information.

Farmer falsely claimed more than $100,000 from the IRS between 2010 and 2012, according to the indictment.

“This defendant stole identities and stole from taxpayers,” Rendon said.

“IRS Criminal Investigation stands ready to investigate anyone who would put a taxpayer at risk for a quick profit,” Enstrom said. "Our special agents use their investigative and financial expertise to detect and hold accountable abusive tax return preparers who falsely tell taxpayers they are eligible for tax credits that they are not entitled to receive."

If convicted, the court will determine the defendants’ sentence after a review of 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.  In most cases, it will be less than the maximum.

This case is being prosecuted by Assistant U.S. Attorney Mark Bennett following an investigation by the IRS.

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

A Youngstown man was sentenced to 15 years in prison for being a felon in possession of a firearm, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Bradley Earman, Acting ATF Special Agent in Charge for the Columbus Field Division.

Lawrence J. Johnson, 52, was found to be an armed career criminal. He illegally possessed a Bryco 9 mm pistol on Aug. 12, despite four felony convictions in state court – attempted robbery in 1982 in Mahoning County, robbery in 1983 in Mahoning County, robbery in 1997 in Trumbull County and complicity to aggravated robbery with a firearm in 2005 in Trumbull County.

“We will continue to prosecute those who carry firearms despite convictions that forbid them from having guns,” Rendon said. “These are people that everyone agrees should not have access to firearms.”

“ATF is committed to combating gun violence in our communities,” Earman said.  “We will continue to work with our law enforcement partners to arrest violent criminals and make our communities safer.”

This case was prosecuted by Assistant U.S. Attorney Kevin Filiatraut following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.

The Justice Department announced today that Dean Windham and Milton Studer, a real estate developer and an architect in Ohio, as well as several companies that they owned and controlled, have agreed to pay a total of $160,000 to resolve allegations that they violated the Fair Housing Act by designing and constructing two neighboring condominium complexes in Hartville, Ohio, with a variety of features that made them inaccessible to persons with disabilities. 

Under the terms of the agreement, which must still be approved by the U.S. District Court for the Northern District of Ohio, the defendants will pay $100,000 to current condominium owners at Windham Bridge Condominiums and Hampton Court Condominiums who choose to make accessibility modifications to their units.  These modifications include eliminating steps and excessive slopes in the walkways to the front entrances of their units; widening doorways; removing or lowering thresholds; installing removable cabinets in kitchens and bathrooms to increase maneuvering space for wheelchair use and relocating toilets, showers and sinks to provide access to a wheelchair user. 

“This settlement makes clear that those who design and build multifamily housing must comply with the accessibility provisions of the Fair Housing Act,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “We will continue to protect the rights of people with disabilities to live in their communities without facing barriers like inaccessible housing.”

“Accessible housing benefits the entire community,” said Acting U.S. Attorney Carole S. Rendon of the Northern District of Ohio.  “It provides living options for people with mobility impairments, and helps ensure that our older residents can stay in their homes as long as possible.  The Department of Justice is committed to enforcing the laws which protect this important right.” 

Under the agreement, the defendants will also pay $10,000 to the Tri-County Center for Independent Living and $10,000 to the Fair Housing Advocates Association, two fair housing community organizations that expended resources in connection with this matter, as well as a $40,000 civil penalty to vindicate the public interest.  The lawsuit arose out of complaints that Tri-County Center for Independent Living and the Fair Housing Advocates Association originally filed with the U.S. Department of Housing and Urban Development (HUD).  After investigating the complaints, HUD determined that the defendants had violated the Fair Housing Act and referred the matter to the Justice Department.

“One out of five persons in America lives with some type of physical disability, making it more important than ever that architects and builders comply with the Fair Housing Act’s accessibility requirements,” said Gustavo Velasquez, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity.  “Today’s settlement reaffirms HUD and the Justice Department’s commitment to ensuring that housing providers meet that obligation.”

The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.  Individuals who believe that they have been victims of housing discrimination can call the Justice Department at 1-800-896-7743 or e-mail the Justice Department at fairhousing@usdoj.gov.  Such persons may also contact the Department of Housing and Urban Development at 1-800-669-9777. 

Fair housing enforcement is a priority of the Civil Rights Division.  More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.

The Justice Department announced today that Dean Windham and Milton Studer, a real estate developer and an architect in Ohio, as well as several companies that they owned and controlled, have agreed to pay a total of $160,000 to resolve allegations that they violated the Fair Housing Act by designing and constructing two neighboring condominium complexes in Hartville, Ohio, with a variety of features that made them inaccessible to persons with disabilities.

Under the terms of the agreement, which must still be approved by the U.S. District Court for the Northern District of Ohio, the defendants will pay $100,000 to current condominium owners at Windham Bridge Condominiums and Hampton Court Condominiums who choose to make accessibility modifications to their units.  These modifications include eliminating steps and excessive slopes in the walkways to the front entrances of their units; widening doorways; removing or lowering thresholds; installing removable cabinets in kitchens and bathrooms to increase maneuvering space for wheelchair use and relocating toilets, showers and sinks to provide access to a wheelchair user.

“This settlement makes clear that those who design and build multifamily housing must comply with the accessibility provisions of the Fair Housing Act,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “We will continue to protect the rights of people with disabilities to live in their communities without facing barriers like inaccessible housing.”

“Accessible housing benefits the entire community,” said Acting U.S. Attorney Carole S. Rendon of the Northern District of Ohio.  “It provides living options for people with mobility impairments, and helps ensure that our older residents can stay in their homes as long as possible.  The Department of Justice is committed to enforcing the laws which protect this important right.” 

Under the agreement, the defendants will also pay $10,000 to the Tri-County Center for Independent Living and $10,000 to the Fair Housing Advocates Association, two fair housing community organizations that expended resources in connection with this matter, as well as a $40,000 civil penalty to vindicate the public interest.  The lawsuit arose out of complaints that Tri-County Center for Independent Living and the Fair Housing Advocates Association originally filed with the U.S. Department of Housing and Urban Development (HUD).  After investigating the complaints, HUD determined that the defendants had violated the Fair Housing Act and referred the matter to the Justice Department.

“One out of five persons in America lives with some type of physical disability, making it more important than ever that architects and builders comply with the Fair Housing Act’s accessibility requirements,” said Gustavo Velasquez, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity.  “Today’s settlement reaffirms HUD and the Justice Department’s commitment to ensuring that housing providers meet that obligation.”

The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.  Individuals who believe that they have been victims of housing discrimination can call the Justice Department at 1-800-896-7743 or e-mail the Justice Department at fairhousing@usdoj.gov.  Such persons may also contact the Department of Housing and Urban Development at 1-800-669-9777. 

Fair housing enforcement is a priority of the Civil Rights Division.  More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.

Noble Homes Consent Order

A Cleveland attorney was convicted of money laundering for accepting $20,000 in purported drug proceeds and agreeing to launder the money, said Carole Rendon, Acting U.S. Attorney for the Northern District of Ohio.

Matthew J. King, 45, was convicted on one count of attempted money laundering and two counts of money laundering following a weeklong jury trial. He is scheduled to be sentenced by U.S. District Judge Donald C. Nugent on Aug. 30.

King accepted $20,000 in cash purported to be the proceeds of the sale of narcotics. He then wrote two checks totaling $4,000 in early 2014, according to trial testimony and court documents.

This case was prosecuted by Assistant U.S. Attorneys Michelle M. Baeppler and Margaret A. Sweeney following an investigation by the Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.

The owner of a business in Cleveland’s Lee-Harvard neighborhood was fined $250,000 and sentenced to six months of house arrest for lying to federal agents about paying cash to city officials, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.

Ashwani “Eddie” Adya, 50, of Solon, previously pleaded guilty to one count of making a false statement to a law enforcement officer.

Adya operated a retail food and beverage business. Lawrence Payten worked at a nonprofit community organization that promoted commercial development in Cleveland’s Lee-Harvard neighborhood. Lejon C. Woods worked as a contract compliance officer in the City of Cleveland’s Office of Equal Opportunity.

Between November 2009 and August 2010, Adya paid cash to Payten and Woods. He lied about these payments when questioned by an FBI agent on June 18, 2015, according to court documents.

Woods and Payten both pleaded guilty to criminal charges. Woods was sentenced to six months in jail while Payten was sentenced to eight months of house arrest.

This case is being prosecuted by Assistant U.S. Attorneys Adam Hollingsworth and Henry F. DeBaggis following an investigation by the Federal Bureau of Investigation.

A federal grand jury returned a four-count indictment charging Michael Baker, 23, of Covington, Georgia; Clinton Gaynor, 27, and Asia Loveless, 20, both of Cleveland, for defrauding local banks by presenting altered U.S. Postal money orders into the bank accounts of recruited people and later withdrawing funds under false pretenses, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.

The indictment alleges that Baker, Gaynor and Loveless recruited local people to deposit 119 altered U.S. Postal money orders into their bank accounts and later made cash withdrawals totaling over $59,000 from various ATMs.

Assistant United States Attorneys Robert W. Kern and Karrie D. Howard are prosecuting this case, following an investigation by the U.S. Postal Inspection Service.

If convicted, the court will determine the defendants’ sentence after a review of 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.  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.

Eric T. Shotwell, 41, of Minerva, was charged with transportation of a minor to engage in illegal sexual activity and travel with intent to engage in illicit sexual conduct, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.

Shotwell knowingly traveled from Ohio to Missouri and Kentucky in March for the purpose of engaging in illicit sexual conduct with a 14-year‑old girl, according to the indictment.

The indictment also charges that, from March 13, 2016, through March 17, 2016, Shotwell knowingly transported a 14-year-old girl from Kentucky to Ohio with the intent that the girl would be engaged in sexual activity for which Shotwell could be charged with a criminal offense.

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

The case was investigated by the Canton Office of the Federal Bureau of Investigation, the Minerva Police Department, the Canton Police Department, and the West Plains, Missouri Police Department. It is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan.

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 Defiance woman was charged with failing to report nearly $800,000 in income to the Internal Revenue Service, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.

Sandra Vonderembse, 65, of did not report taxable income between the tax years of 2009 through 2011. During that time, her income was approximately $793,204, meaning she would owe the IRS approximately $136,351 in taxes, according to the criminal 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, and the defendant’s role in the offense and the characteristics of the violation.  Tax evasion is punishable by a sentence of of up to five years in prison.  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 Internal Revenue Service-Criminal Investigation, Toledo.  The case is being handled by Assistant United States Attorney Noah P. Hood and Department of Justice Trial Attorneys Jack Morgan and Jeffrey McLellan.

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

A two-count indictment was filed in federal court charging a Berea man with distributing heroin that killed a Lakewood man earlier this year, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.

Brandon Wagner, 43, was indicted on one count of distribution of heroin and one count of using a communication facility to facilitate a felony. The charges stem from the March 16 sale of heroin that resulted in the death of another person, according to the indictment.

That count carries a sentencing enhancement that can result in a 20-year mandatory minimum penalty.

“The unrelenting wave of fatalities associated with heroin and opioid abuse is a reminder to all of us that we need to do more to protect our community from this epidemic,” Rendon said. “The only way we can stem this tide is with a comprehensive approach focused on prevention, treatment, prescribing practices and enforcement. Law enforcement will continue to aggressively prosecute dealers whose actions result in the deaths of our sons and daughters.”

“The crisis we have in our communities due to heroin and fentanyl is not a problem for just the addicted,” said Lakewood Police Chief Tim Malley. “The families and friends are just as intimately involved with the damage and sorrow this causes. The Lakewood Police Department will continue to investigate all of our overdose cases to hold those accountable that have participated in any way in ending someone’s life. Those selling the heroin know that fatal consequences are all too likely with what they are selling, all for a few dollars.  The Lakewood Police Department will continue to work with the U.S. Department of Justice, the Cuyahoga County Prosecutors Office, and the Cuyahoga County Medical Examiner to hold those accountable and take them off our streets for lengthy prison sentences.”

This case is being prosecuted by Assistant U.S. Attorney Marisa Darden following an investigation by the Lakewood Police Department and the Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.

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.

A former employee of a Youngstown-based company was charged with violating the Clean Water Act for directing another employee to dump fracking waste into a tributary of the Mahoning River, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.

David N. Jenkins, 34, of Warren, was charged via criminal information with one count of making unpermitted discharges in violation of the Clean Water Act.

According to the indictment and related court documents:

Hardrock Excavating LLC was owned by Benedict Lupo and located at 2761 Salt Springs Road in Youngstown. The company provided services to the oil and gas industry in Ohio and Pennsylvania, including the storage of brine and oil-based drilling mud used in hydrofracturing, or fracking.

There were approximately 58 mobile storage tanks at the facility and each held approximately 20,000 gallons.

Lupo directed employees to empty some of the waste liquid stored at the facility into a nearby wastewater drain on or about Nov. 1, 2012. Lupo directed the employees to conduct this activity only after no one else was at the facility and only after dark.

The employees, at Lupo’s direction, emptied some of the waste liquid at the facility into the nearby stormwater drain using a hose on numerous occasions over the next several months. The drain flowed into a tributary of the Mahoning River and ultimately into the Mahoning River.

On occasion, Lupo was unable to speak directly to employees. In those instances, Lupo directed Jenkins to contact the employees about emptying the stored waste liquids into the stormwater drain at night, which Jenkins did.

The last time an employee emptied some of the waste liquid into the drain was on or about Jan. 31, 2013. The waste liquid that night included brine and drill cuttings. A sample of the discharge taken that night was black in color and a subsequent analysis showed the presence of several hazardous pollutants, including benzene and toluene.

Lupo, of Poland, Ohio, was previously found guilty of making an unpermitted discharge and sentenced to more than two years in prison.

This case is being prosecuted by Special Assistant U.S. Attorney Brad Beeson following an investigation by the Ohio EPA, Ohio Department of Natural Resources, U.S. EPA, the Ohio Bureau of Criminal Investigation, the Youngstown Department of Public Works and the Youngstown Fire 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 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 jury convicted an Akron man on five counts for related to an extortion plot, said Carole S. Rendon, Acting 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 on 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 following a weeklong trial. He was acquitted of one count of possession with intent to distribute heroin.

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.

Conley is scheduled to be sentenced on Sept. 29.

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

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

The former director of the Cleveland and Dayton VA Medical Center was sentenced to 57 months in prison for working as a consultant for and taking money and other things of value from a design firm bidding on VA jobs and sharing confidential information about construction projects while still employed by the VA, law enforcement officials said.

William D. Montague, 63, of Brecksville, previously pleaded guilty to 64 counts, including Hobbs Act conspiracy, conspiracy to commit honest services mail fraud, violating the Hobbs Act, money laundering, multiple counts of wire fraud, mail fraud, disclosing public contract information, and other charges.

Montague has paid approximately $390,000 in restitution and forfeiture.

“As a Veterans Affairs Medical Center Director, William Montague undertook a responsibility to serve the public but instead he chose to become self-serving accepting bribes and kickbacks in exchange for favorable official actions,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Field Office. “The FBI and our law enforcement partners will continue to aggressively pursue those who abuse the trust we place in public servants to act in the community’s best interest.” 

“Our joint investigation with the FBI resulted in the conviction of a former VA Medical Center Director who abused his position by taking bribes and manipulating the government's contracting process for personal gain,”  said Gregg Hirstein, Veterans Affairs, Office of Inspector General Special Agent in Charge, Central Field Office.  “We are pleased that this sentence reflects the seriousness of the crimes and believe this conviction will serve as a deterrent to others who might consider defrauding the Department of Veterans Affairs and our country's veterans.”

Montague served as director of the Cleveland VA Medical Center from 1995 until February 3, 2010. On March 11, 2011, Montague began working as director of the Dayton VA Medical Center, a position he held through December 17, 2011, according to court documents.

Court documents detail interactions between Montague and a company identified as Business 75, an integrated design firm with offices throughout the United States, including New York, Illinois, Virginia, Missouri, and California. The company performed work for the VA directly and through its participation in joint ventures and other teaming agreements.

Montague, Business 75, and employees of the company conspired to defraud the VA of its right to the honest and faithful service of Montague through bribery and kickbacks and to defraud the VA and other potential VA contractors by means of false and fraudulent pretenses beginning in 2010, according to court documents.

Montague secretly used his position as Dayton VA Medical Center director to enrich himself and his designees (including House of Montague, a financial services company Montague operated) by soliciting and accepting gifts, payments, and other things of value from Business 75 in exchange for favorable official actions. He also solicited money and a consulting contract from Business 75 in exchange for information related to VA contracts and projects, which would benefit Business 75, Business 75’s principal and their designees, according to court documents.

This was done to give Business 75 an advantage in obtaining VA contracts and projects. Montague gave false and misleading information to VA employees about his reasons for requesting VA documents and information, according to court documents.

The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon and Paul Flannery following an investigation by the FBI and United States Department of Veterans Affairs-Office of Inspector General.

A Uniontown man was sentenced to nearly five years in prison for operating a scheme in which 19 investors lost approximately $5.6 million, law enforcement officials said.

Geoffrey W. Nehrenz, 37, previously pleaded guilty to one count of wire fraud and two counts of money laundering.

U.S. District Court Judge Christopher Boyko sentenced Nehrenz to 55 months in prison and ordered him to pay $5.6 million in restitution.

Nehrenz promoted and sold investment contracts to clients through Keystone Capital Management, LLC (“KCM”) an investment adviser company located in Uniontown, which is an Ohio limited liability company registered as an investment adviser firm, but not registered with the Securities and Exchange Commission. This took place between 2009 and 2013. Nehrenz was the managing member, president, and chief executive officer of KCM, according to court documents.

Nehrenz induced 19 clients to invest in Keystone by promoting KCM’s ability to generate positive investment returns in equity markets while mitigating risk. He falsely represented to potential clients that their funds would be pooled, invested during the day in large- and mid-capitalization, publicly traded U.S. securities exclusively, and converted to cash overnight. Rather than investing the funds, Nehrenz used client money to pay his personal expenses, to pay business expenses to promote and prolong his investment scheme, and to make speculative, high-risk trades with domestic and overseas private placement vehicles without his clients’ authority, transactions known as “side pocket investments,” according to court documents.

Nehrenz induced at least 19 clients to invest approximately $7 million into his hedge fund, resulting in losses to his clients in the amount of approximately $5.6 million.

The indictment was presented by AUSA Christos N. Georgalis after an investigation by agents of the Federal Bureau of Investigation and Internal Revenue Service.

Three people were indicted in federal court for their roles in a $634,000 health care fraud scheme involving two ambulette companies they operated and fraudulent billing of the Ohio Medicaid program, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.

Named in the six-count indictment are: Yahya Sayid Ibrahim, 34, of Toledo; Abdul Haji Faqi, 40, of Canal Winchester, and Hussein Ahmed, 45, of Toledo.

The indictment charges Ibrahim, Faqi and Ahmed with a conspiracy to commit health care fraud through the operation of two Toledo companies, Blue Line Express Taxi and Medical Transport and Metro Medical Transportation, LLC. The indictment also charges the defendants with five substantive counts of health care fraud related to Medicaid benefits for conduct that took place between 2009 and 2016. 

The defendants transported – and billed for -- Medicaid recipients that did not need wheelchairs, understanding Medicaid only provided reimbursement for recipients who required the assistance of wheelchairs and were actually transported in wheelchairs. They also billed Medicaid for ambulette transportation services (vans with lifts for wheelchairs) when they were actually transporting people in vehicles that were not ambulettes, such as Toyota Camrys, 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 agencies in this case are Health and Human Services Office of Inspector General, the Ohio Attorney General’s Medicaid Frauds Control Unit and the Federal Bureau of Investigation in Toledo. The case is being handled by Assistant United States Attorneys Noah P. Hood and Gene Crawford. 

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.

Five people were indicted in federal court on human trafficking charges for their roles in conspiracies in which girls, then 14 and 16 years old, were forced into commercial sex acts, said Acting U.S. Attorney Carole S. Rendon, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office, and Lima Police Chief Kevin Martin.

Named in the 15-count indictment are: Megan Hitt, 28; Lorenzo Young, 30, Randy Thompson, 26; Aundre Davis, 34, and Precious Russell, 19.

Two other people -- Shemeric Cook, 29, and Jacqueline Young, 53 -- face charges related to obstructing the investigation.

All the defendants are from Lima, Ohio, except for Hitt, who is from Fort Wayne, Indiana.

The charges include conspiracy to engage in sex trafficking of a minor, transportation of a minor with intent to engage in prostitution, sex trafficking of a minor, obstruction of a sex trafficking investigation, conspiracy to obstruct a sex trafficking investigation and participation in a child exploitation enterprise.

One conspiracy involves Hitt, Young, Thompson and Davis, and took place between November 2015 and January 2016, in which the four conspired to cause girls, aged 14 and 16, to engage in commercial sex acts in Lima and Fort Wayne. They did this by taking and posting sexually explicit photos of the girls on backpage.com, transporting the girls, renting motel rooms for them and negotiating prices, according to the indictment.

Another conspiracy involves Thompson and Russell and took place in November and December 2015 when they caused the then-14-year-old girl to engage in commercial sex acts in Lima. Thompson would receive 50 percent of money paid by the girl’s customers, Russell would receive 25 percent of the money and the girl could keep the remaining 25 percent, according to the indictment.

“This indictment is yet another reminder that human trafficking is all around us,” Rendon said. “It flourishes in plain sight, on the internet and in the motels in our towns. The conduct these defendants engaged in is reprehensible, and they will now be held accountable.”

“These individuals violated the rights of some of our most vulnerable in our community - the children,” Anthony said. “The FBI will continue working with our law enforcement partners to aggressively pursue justice for human trafficking victims and to put their perpetrators behind bars."

“Human trafficking is a devastating crime that must be stopped.  It victimizes people within every segment of society throughout our nation,” Martin said. “I want to thank the FBI and U.S. Attorney’s Office for their help in enforcing the law against those who will engage in human trafficking within the Lima community. We are grateful for the cooperative working relationship we have with them and the many other local, state and federal law enforcement agencies that are working together to make human trafficking a thing of the past.  The Lima Police Department cannot accomplish this alone.” 

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.

This case was investigated by the Federal Bureau of Investigation’s Toledo office and the Lima Police Department. It is being prosecuted by Assistant U.S. Attorneys Alissa M. Sterling, and Daniel R. Hurley.        

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 federal grand jury returned a 15-count indictment charging four Youngstown men with narcotics and firearms violations, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.

Tawayme Jett, 36; Jamal Pusey, 37; Michael Reynolds, 33, and Olajuwon Perkins, 26, were charged with conspiracy to distribute and distribution of crack cocaine.  Jett and Pusey are also charged with being felons in possession of firearms and ammunition.

Pusey maintained two residences in Youngstown for the purposes of selling narcotics.  Pusey, Reynolds, Perkins and Jett then used these two residences to store and sell crack cocaine and store firearms, according to the indictment. 

Pusey and Jett possessed firearms to protect themselves and their drug proceeds, according to the indictment.

The defendants, between March and June 2015, sold crack cocaine to confidential sources, possessed firearms, ammunition, crack cocaine, digital scales and drug proceeds, according to the indictment.

Pusey and Jett are also charged with being convicted felons who possessed multiple firearms on June 23, 2015. 

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

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

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

An indictment was filed charging Richard Hack, 27, of Lima, with receipt and distribution of material involving the sexual exploitation of children, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.

The conduct took place between 2011 and 2015, according to the indictment

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

The investigating agency in this case is the Federal Bureau of Investigation, in Toledo.  The case is being handled by Assistant United States Attorney Tracey Ballard Tangeman.            

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 former Hudson resident was sentenced to nearly seven years in prison for leading a conspiracy that sent marijuana from California to the Cleveland area, then laundered the drug proceeds and sent the money back to California, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.

James Sorgi, 35, was sentenced to 80 months in federal prison. He also forfeited more than $86,000 in cash and money orders.

Sorgi operated a drug trafficking organization that shipped marijuana from California to Cleveland. He grew the marijuana in California and also obtained marijuana from other growers. Sorgi then worked with Robert Serina and Stuart Pflaum to direct others to receive multi-pound shipments of marijuana in Ohio and sell it there, according to court documents.

Sorgi, working with Serina, Pflaum and others, then directed people to collect the drug proceeds and make cash deposits into various bank accounts. Sorgi, through Pflaum and Serina, then directed people to convert the cash into money orders and send the money to California, according court documents.

This took place between June 2013 and Februay 2015, according to the indictment.

The case against Serina is pending. Pflaum has pleaded guilty to his role in the conspiracy and is awaiting sentencing.

This case is being prosecuted by Assistant U.S. Attorneys Michelle Baeppler and Margaret Sweeney following an investigation by the Northern Ohio Law Enforcement Task Force and the U.S. Postal Inspection Service. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.

Criminal charges were filed in federal court alleging cash bribes and kickbacks between contractors and a Cleveland Housing Network official, as well as improper lead abatement practices at several renovation projects, law enforcement officials said.

Named in the four-count criminal information are: James Todt, 49, of Brecksville; Lizandro Orellana, 56, of Cleveland; Chris Peterson, 42, of Macedonia, and Modern Construction Group LLC.

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. Orellana owned and operated Modern Construction Group LLC and Peterson owned and operated Top Notch Construction, according to the information.

Todt corruptly solicited and accepted things of value from Orellana and Peterson between 2009 and 2014. Peterson paid Todt up to $10,000 in cash in exchange for CHN work that Todt awarded to Top Notch, according to the information.

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 the information.

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 the information.

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

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 the information.

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 the information.

“Sadly, cash bribes and free home improvements from contractors looking to get work on taxpayer-supported projects have not been eradicated from Northeast Ohio,” Acting U.S. Attorney Carole S. Rendon said. “Mr. Orellana also showed no regard for his employees, the environment or our community’s general well-being when he ordered items covered in lead paint to be removed and dumped.”

“These individuals defrauded a federal housing assistance program by conspiring to obtain monies and services for their own personal benefit,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “The FBI, along with its partners, will continue to investigate fraud against federally funded programs intended to help those in need.”

“The charges disclosed today prove our continuing resolve to root out fraud and corruption in all forms, especially when the programs involved should have been used to help our neediest families,” said Brad Geary, Special Agent in Charge, the Department of Housing and Urban Development – Office of Inspector General.  “It is our continuing core mission to work with our Federal, State, and Local law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to personally benefit from taxpayer-funded grants.

“Lead-based paint in homes continues to pose a public health threat, often to children who may be exposed to it,” said Jeffrey Martinez, Acting Special Agent in Charge of EPA's criminal enforcement program in Ohio. “If the proper abatement procedures are not followed, the problem only becomes worse.  EPA’s mission of protecting public health and the environment means we will prosecute and punish those who jeopardize public safety for their own personal gain.”

“Accepting bribes and kickbacks is unacceptable, especially when it involves something as important as lead abatement,” Ohio Attorney Mike DeWine said. “The Ohio Attorney General’s Office helped investigate this case, and we’ll continue to work with our federal, state, and local partners to go after those who commit fraud or other crimes.”

Todt, Orellana and Peterson are named in Count 1 – conspiracy to commit bribery concerning programs receiving federal funds. Count 2 and 3, theft concerning programs receiving federal funds, apply only to Todt. Orellana and Modern Construction are named in Count 4, violation of authorized state lead-based paint program requirements.

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.

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

An Akron man was indicted on federal charges for distributing fentanyl that caused the death of a person in last fall, said Carole Rendon, Acting U.S. Attorney for the Northern District of Ohio.

Jurmaine A. Jeffries, 27, was named in the two-count indictment. He is charged with distribution of fentanyl and possession with intent to distribute fentanyl. The indictment also seeks a sentencing enhancement because the fentanyl Jeffries sold resulted in the death on Sept. 16, 2015, of  a person identified as J.H. in Akron, according to the indictment.

"We will continue to work to educate the public on the dangers of opioids and get help for those who want it," Rendon said. "We will also aggressively prosecute those who sell heroin and fentanyl, which have caused so much pain and death in our community."

This case is being prosecuted by Assistant U.S. Attorney Linda K. Barr following an investigation by the Drug Enforcement Administration and Akron Police Department.

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 records, if any, the Defendant’s role in the offenses and the unique characteristics of the violations.  In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

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

A former pastor was sentenced to more than five years in prison for receiving material involving the sexual exploitation of children, said Acting U.S. Attorney Carole S. Rendon.

Gerald B. Searle, 51, of Liberty Center, had thousands of images involving child pornography and exploitation on his computer between 2013 and 2015, according to court documents

The investigating agency in this case is the U.S. Postal Inspection Service, with the assistance of the Ohio Bureau of Criminal Investigation and the Erie County Sheriff’s Office. The case is being handled by Assistant United States Attorney Tracey Tangeman.

Five U.S. Postal carriers were charged with conspiring to distribute marijuana after helping arrange shipments of marijuana shipped via the U.S. mail and gave them to another drug dealer, said Carole S. Rendon, Acting U.S. States Attorney for the Northern District of Ohio

Named in the 11-count indictment are Aaron L. Kelly, 28, Dartagnan B. Mitchell, 28, Tamika S. Embry, 32, Devon Blake, 25 and Rashon Blake, 25, all of Cleveland.

Count 1 of the indictment charges all five defendants with conspiracy to possess with the intent to distribute a controlled substance between May and July 2015.  Count 2 through 6 charge the defendants individually with public corruption violations for accepting things of value in return for official actions in relation to their jobs. Count 7 through 11 charge the defendants individually with possession with intent to distribute marijuana.

The five postal carriers informed Kevin Collins of their work schedules and addresses on their respective routes. Collins then arranged for packages of marijuana to be shipped to addresses on the routes of the defendants and sent them when he knew the defendants were scheduled to be working, according to the indictment.

Blake, Blake, Embry, Kelly and Mitchell took the parcels containing marijuana and, instead of delivering them to the listed addresses, gave the packages directly to Collins. They often improperly scanned or did not scan the marijuana packages in an effort to disguise the package’s delivery status, according to the indictment.

Collins paid cash to the defendants in return for their actions, according to the indictment.

Collins has pleaded guilty to charges of conspiracy to possess with intent to distribute marijuana and using firearm during drug trafficking crime. He is awaiting sentencing.

“These mail carriers used their positions not to serve the public, but to be spokes in a drug-trafficking organization,” Rendon said. “They violated the trust of the public and their employer, and now must answer to criminal charges.”

U.S. Postal Service Office of Inspector General Special Agent in Charge of the Eastern Area Field Office Monica S. Weyler, said: “The vast majority of the nation’s 400,000 postal employees are honest, hard-working individuals. It is troubling when a few of those employees choose to violate the trust given to them to use their positions for personal gain. These investigations show that USPS OIG special agents and postal inspectors will work diligently to find those few employees who choose to deliver drugs instead of the mail, and will seek their criminal prosecution and removal from the Postal Service. The employees named in these charges threw away their federal career for a few hundred dollars. Other employees who are engaging in this conduct should ask themselves, is it worth it? To report postal employee misconduct or criminal activity, contact special agents at 888-USPS-OIG or www.uspsoig.gov.”

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 records, if any, the Defendant’s role in the offenses and the unique 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 case is being prosecuted by Assistant U.S. Attorneys Matthew B. Kall and Daniel J. Riedl.  The investigation was conducted by the U.S. Postal Inspection Service and Office of Inspector General, Cleveland. 

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 people from Northeast Ohio were indicted for their actions related to the straw purchase of a firearm, said Carole Rendon, Acting U.S. Attorney for the Northern District of Ohio.

Named in the three-count indictment are Malcolm Roberson, 26, of Warrensville Heights, and Chimere M. Turner, 32,  of Cleveland.

Count 1 charges that Roberson and Turner engaged in a straw purchase of a Jimenez Arms 9 mm pistol on Feb. 20 at Taylor Firearms LLC in Vermillion when Turner said she was  the buyer of the firearms when the actual buyer of the firearm was Roberson. Count 2 charges Roberson with being a felon in possession of a firearm, of having the 9 mm pistol despite a 2011 conviction for assault. Count 3 charges Turner with making false statements following being served a subpoena.

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

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 defendants’ prior criminal records (if any), the defendants’ 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 in federal court for  possessing with intent to distribute crack cocaine and being a felon in possession of a firearm, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.

Juan J. Hiraldo, 26, possessed approximately 26 grams of cocaine base (crack) and a Kahr .40 Caliber pistol with ammunition on May 3. Hiraldo had previously been convicted ason and domestic violence in Cuyahoga County Court of Common Pleas, according to the indictment.

The case is being prosecuted by Assistant United States Attorney Marisa T. Darden following an investigation by the Lakewood Police Department and the Northern Ohio Law Enforcement Task Force.

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

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

A criminal information was filed charging John E. Moon, 69, of Bowling Green, with conspiracy and wire fraud, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.

Moon owned AlphaCare Services Inc. (ACS) and served as treasurer of the Construction Contractors Employer Group LLC (CCEG). CCEG was made up of general contractors from Northwest Ohio and served its members by collecting, processing and paying their employment expenses, such as payroll and worker’s compensation premiums, according to the information.

Moon embezzled money CCEG from 2002 through 2016. In one example, Moon made a wire transfer of $15,624 from a CCEG account to an ACS account. Then Moon and others wrote checks from the ACS account for their own personal benefit, 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 Federal Bureau of Investigation in Sandusky.  The case is being handled by Assistant United States Attorney Gene Crawford.          

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.

Three people from Northeast Ohio were arrested this morning for their roles in a cocaine distribution conspiracy, said Acting U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. 

Named in the nine-count indictment are: Christopher Fitzgerald, 41, of Bedford Heights; Rashard Smith, 42, of Northfield, and Chiquita Anderson, 42, of Bedford.

Fitzgerald and Smith worked as couriers at a domestic shipping company and used their positions to ship kilograms of cocaine from California to Cleveland. Anderson maintained a premises to assist in the cocaine distribution, according to the indictment.

Prosecutors are seeking to forfeit the money involved in the alleged crime.

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

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 defendants’ prior criminal records (if any), the defendants’ 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 grand jury returned an indictment charging Yatkia Wallace, 42, of Mansfield, with one count of embezzlement in connection with health care, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.

The indictment alleges that Wallace embezzled $339,198 from her former employer, D & I Associates and converted it for her own personal use. 

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

The case is being prosecuted by Assistant U.S. Attorney Carmen E. Henderson following an investigation by the Federal Bureau of Investigation.

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 woman from Olmsted Township was charged with embezzling from a bank, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.

Betti J. Haviland, 37, of Olmsted Township, Ohio, is charged with theft, embezzlement, or misapplication by a bank officer or employee.  Specifically, the information alleges that from September 28, 2007 through April 3, 2015, Haviland stole $270,685 from Lorain National Bank, where she was employed as a vault teller. 

The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following an investigation by the Federal Bureau of Investigation.

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