Northern District of Ohio

An 11-count criminal indictment was filed charging a travelling minister from Arkansas and a Georgia man for their roles in a $4.8. million tax refund scam, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

Allen D. Miles, 57, of Little Rock, Arkansas, and Ve Sayavong, 37, of Jonesboro, Georgia, were each charged with one count of conspiracy to commit wire fraud and 10 counts of wire fraud.

The indictment alleges that Miles and Sayavong, acting together with Zinara Highsmith -- who has previously pleaded guilty for her role in the conspiracy -- engaged in a false tax refund scheme in which approximately 2,750 false income tax returns were filed, netting false income tax refunds of approximately $4.8 million.

Miles, the travelling minister, obtained personal identification information from congregants by telling them that he could help them obtain money from an alleged government stimulus fund program. Miles did not tell congregants that income tax returns were going to be filed on their behalf. After he obtained the information, Miles forwarded it to Highsmith, and then Highsmith, Sayavong and others created the false income tax returns that generated refunds based on certain credits for which the taxpayers did not qualify, like the American Opportunity Credit, Making Work Pay Credit, and Earned Income Credit, according to the indictment.

For each refund, Miles collected a $125 commission and Highsmith received $275, from which she paid Sayavong and others; the taxpayers received the balance. Miles received approximately $240,000 and Sayavong received $178,000 for their efforts in the refund scam, which operated between March and July 2011, according to the indictment.

"These defendants were part of a scheme in which they took advantage of their victims' faith and tax credits designed to help the least among us," Dettelbach said.

“This investigation uncovered a fraudulent scheme that attempted to generate millions of dollars,” Enstrom said.  “These defendants used deceit and fraud to line their pockets with stolen federal tax refunds and they will be held accountable for their actions.”

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

This case is being prosecuted by Assistant U.S. Attorney Michael L. Collyer, following an investigation by the Internal Revenue Service – Criminal Investigations.

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

 

 

A two-count criminal information was filed charging Toledo woman with participating a fraudulent home loan modification conspiracy, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Constance Kanary, 52, was charged with one count of conspiracy to commit mail fraud and one count of mail fraud.

Kanary operated a purported loan-modification operation called Making Home Affordable USA (MHAUSA) from March 2012 through April 2013. The business was primarily located at 120 10th Street in Toledo  and used other names, including Federal Home Savings Solutions, National Mortgage Relief Center and others, according to the information.

Kanary was a sales agent at the company. As part of her job, she contacted homeowners in need of loan modifications and encouraged them to participate in the company’s “Home Saver Program” in which they were told to stop paying their mortgages and instead pay a percentage to MHAUSA to demonstrate they could reliably make reduced monthly payments. The participants were also told there was a flat fee, between $495 and $795, for the service, according to the information.

Kanary deposited these monies into an account at Bank of America and spent the money on the scheme’s expenses and made cash withdrawals from the account, 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 agencies in this case were the Federal Bureau of Investigation's Toledo Office and the U.S. Department of Housing and Urban Development -- Office of Inspector General.  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.

Andrew Parker, 40, a Jamaican national living in Cleveland, was indicted by a federal grand jury for illegally reentering the United States after having been deported, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.

The indictment alleges that the defendant was found in the Akron area after having been deported from the United States in 1997 and without having received permission to reenter the United States.

The United States Immigration and Customs Service conducted the investigation.  The case is being prosecuted by Assistant United States Attorney Miranda E. Dugi.

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

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

A Cleveland man was sentenced to 17 1/2 years in prison for firearms trafficking, said U.S. Attorney Steven M. Dettelbach and Donald Soranno, Special Agent in Charge of ATF’s Columbus Field Division.

Moises Perez, 45, previously pleaded guilty to one count of being a felon in possession of firearms. U.S. District Judge Patricia A. Gaughan determined Perez should be classified as an armed career criminal and sentenced him to 210 months in federal prison.

Perez sold a Ruger 9 mm pistol, an H&R .22-caliber revolver and 94 rounds of ammunition to an undercover agent in August 2014. Perez was forbidden from possessing firearm or ammunition because of nearly two-dozen convictions, including felony convictions for burglary, attempted felonious assault, unlawful sexual conduct with a minor, attempted felonious assault with a firearm, attempted intimidation, drug trafficking, robbery and being a felon in possession of a firearm, according to court documents.

“Cleveland is a safer city because this defendant is off the street,” Dettelbach said. “He has a history of violent crime going back 30 years. This operation is the result of tremendous work by the ATF, Cleveland police and all our law-enforcement partners.”

“This case represents one more step to create a ripple effect to stifle violent crime,” Soranno said. “Individuals who are illegally possessing firearms and specifically engaging in illegally trafficking firearms are at the epicenter of violence in our communities.  By attacking the tools of the trade and removing illegal firearms from the streets, we all help make our streets safer for everyone.”

This case was prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Kelly L. Galvin. It was part of “Operation Samson II,” an enhanced-enforcement initiative targeting the criminal possession, use and sale of firearms in Greater Cleveland. The operation resulted in 60 people being indicted and 110 firearms seized.

This initiative was a cooperative effort between the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cleveland Division of Police, the Ohio Adult Parole Authority, the U.S. Marshals Service, the U.S. Attorney’s Office and the Cuyahoga County Prosecutor’s Office.

A federal grand jury indicted Marion Sobkowiak, 66, of Cleveland, for theft of government funds, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.

The indictment alleges that Sobkowiak fraudulently cashed his deceased mother’s Social Security widow’s benefits checks from January 1998 until April 2014, taking a total of $175,477 in benefits to which he was not entitled.

The Social Security Administration Office of Inspector General conducted the investigation.  The case is being prosecuted by Assistant United States Attorney Miranda E. Dugi and 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 indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.

A grand jury returned a one-count indictment charging Richard Gruly, 67, of Cleveland, with one count of bank robbery, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.

The indictment alleges that Gruly robbed the US Bank, 200 Public Square, in Cleveland, a federally insured financial institution, on May 15, 2013.

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

The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the Federal Bureau of Investigation's Cleveland Division.

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

A federal grand jury returned a nine-count indictment charging Kenneth L. Jefferson, 60, of Cleveland, with unlawful possession of a postal key and eight counts of bank fraud, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.

The indictment alleges Jefferson defrauded Key Bank, Charter One Bank and U.S. Bank through misrepresentations relating to numerous checks.

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

Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the United States Postal Inspection Service.

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

Allison A. Thompson, 49, of Akron, Ohio, was indicted today by a federal grand jury for making false statements to obtain federal disability benefits, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.

The indictment alleges that the defendant submitted false statements in connection with the application for and receipt of compensation, benefit, and payment under the Federal Employees’ Compensation Act in 2012 and 2013.

The United States Postal Service Office of the Inspector General conducted the investigation.  The case is being prosecuted by Assistant United States Attorney Miranda E. Dugi.   

If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s applicable U.S. Sentencing Guidelines range, 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.

David T. Beiter, 54, of Akron, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, transferring obscene material to a juvenile and enticement, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.

The Indictment charges that from on or about February 9, 2015 through on or about March 19, 2015, Beiter knowingly used a device connected to the Internet, to attempt to persuade, induce, entice and coerce a 12-year-old girl to engage in illegal sexual activity with him. The indictment also charges that on or about February 9, 2015, Beiter used a facility and means of interstate commerce, that is, a device connected to the Internet, to knowingly attempt transfer obscene matter, that is, a visual depiction purportedly of his ejaculating penis, to an individual who he knew had not attained the age of 16 years, that is, 12-year‑old girl.  The indictment also charges that from on or about February 1, 2014, through on or about March 20, 2015, Beiter knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. Lastly, the indictment charges that on March 20, 2015, Beiter possessed a computer that contained child pornography.

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

This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan.  The case was investigated by the Akron, Ohio and Richmond, Virginia Offices of the Federal Bureau of Investigation, and the Middlesex County (Virginia) Sheriff’s Office.

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

The former police chief of Kirtland Hills was sentenced to two years in prison for defrauding the village out of at least $80,000 by making unauthorized purchases of clothing, tools and goods for his own personal use, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.

Gerald Smith, Jr., 57, of Kirtland, previously pleaded guilty to one count of mail fraud and one count of destruction, alteration or falsification of records in a federal investigation.

To date, Smith has paid $140,503, which covers the amount he stole and the village's related legal expenses. He was ordered to pay an additional $9,034 in restitution.

“Mr. Smith used the village treasury as his own personal checkbook,” Dettelbach said. “He violated the public's trust."

“When any law enforcement officer crosses the line of being a law-abiding citizen to becoming a law-breaking citizen it is disheartening," Anthony said. "The FBI will continue to pursue and bring to justice those in  a position of trust and authority that violate that trust by breaking the law."

Smith joined the Kirtland Hills police department in 1978 and served as chief from 1988 until April 4, 2014. In this capacity, Smith was authorized to reimburse officers for work-related expenses and use village funds to procure necessary supplies, including the use of several village credit cards or lines of credit, according to the information.

The department also had petty cash fund, maintained in Smith’s office, in which employees submitted receipts with their name and the purpose of the expense written on it, for which they were then reimbursed, according to court documents.

Smith made approximately $80,000 in personal expenditures using village credit cards between 2007 and 2014. Some of the items were used to partially furnish his Florida condominium. Items purchased include ceiling fans, plumbing supplies, vacuum cleaners, children’s lunch boxes and story books, clothing, televisions, book shelves, personal hygiene items, firearms, car repairs and more, according to court documents.

Smith concealed these purchases by making false entries on receipts to make it appear they were made by others or made for official police business. By spreading the purchases out among different funds, he prevented the village from readily noticing large amounts of expenditures from one particular fund, according to court documents.

For example, Smith went on a hunting trip to Pennsylvania in 2007. While on vacation, he made the following purchases on a Kirtland Hills credit card: knife sharpening ($70), items at an Army Navy store ($269.96), and items at a sporting goods store, including Pro Hunter pants and jacket and a shirt ($209.97). He then falsely wrote on the receipt that the sporting goods clothing was SWAT clothing for a Kirtland Hills officer, according to court documents.

In 2007, Smith ordered several items online, including a $107.96 pair of women’s tan Ugg boots with the village Mastercard. Smith falsely wrote on the receipt “Road Dept Boots and Boots for (a Kirtland Hills police officer),” knowing the officer did not receive the boots, according to court documents.

Smith also obtained Kirtland Hills money by submitting false claims to the petty cash fund. When Kirtland Hills officers went out to lunch, or when Smith took personal trips with officers and the group stopped for food, Smith at times asked for the receipts. He then submitted the receipts for petty cash reimbursement under the officers’ names but without their knowledge, taking the cash for himself, according to court documents.

On March 17, 2014, Smith was placed on leave by Kirtland Hills and required to surrender his access badges, keys and all village property. He was also served by FBI agents with a federal grand jury subpoena, which required the production of certain documents and items.

On March 20, 2014, Smith secretly brought more than 50 items from his residence to a village storage shed and placed the items on the shelves, to give the appearance that these items belonged to the Village of Kirtland Hills. Among the items Smith returned were a drill, heater, dehumidifier, air purifier, camouflage tarps, socket set, channel locks, extension cords, hammer, hand saw and other items, according to court documents.

The case is being prosecuted by Assistant United States Attorney Antoinette T. Bacon following an investigation by the Federal Bureau of Investigation.

A Richfield man was charged in a criminal information with selling unregistered securities in which dozens of investors lost about $7 million, law enforcement officials said.

Jerry A. Cicolani, Jr., 51, worked to recruit investors to KGTA Petroleum, Ltd., which was operated by Kenneth A. Grant and others. Grant and others marketed the company to investors as a petroleum company that earned profits by buying and reselling various crude oils and refined fuel products.

Cicolani was a licensed registered representative with PrimeSolutions Securities, Inc., which had officers in Akron and was registered with the Financial Industry Regulatory Authority. Cicolani concealed his outside business interests from PrimeSolutions and had his commissions from KGTA paid to outside entities, according to the information.

KGTA issued securities which were required to be issued with the Securities and Exchange Commission. At no time did Cicolani, or anyone to his knowledge, file any documentation related to the KGTA with the SEC, according to the information.

Cicolani received approximately $5 million in commission fees for enlisting 39 investors, who collectively lost $7 million from their investments with KGTA in unregistered securities, according to the information.

In a related case, Kelly C. Hood, 36, of Naples, Florida, was charged with one count of structuring. Hood, at Cicolani’s direction, structured commission payments made to himself and Cicolani for the sale of unregistered securities of KGTA. This was done to evade bank reporting requirements, according to the information.

Grant has previously pleaded guilty to one count of conspiracy to commit wire fraud and securities fraud and one count of money laundering for his role in the scheme. He is scheduled to be sentenced May 20.

These case are being prosecuted by Assistant U.S. Attorney Mark Bennett and Special Assistant U.S. Attorney Derek Kleinmann following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.

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

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 indicted for their roles in a $1.5 million conspiracy to defraud several banks, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Timothy R. Bradley, 40, now of Cary, N.C., and Martha E. Ednie, 53, of Toledo, were each indicted on one count of  conspiracy to commit bank fraud and multiple 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. Beginning in 2005, Bradley and Ednie conspired with others to obtain fraudulent mortgage loans by concealing the true purchase price from banks making the loans, according to the indictment.

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 the indictment.

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 the indictment.

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

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

An Akron man pleaded guilty in federal court to operating a dog-fighting venture and related counts, law enforcement officials said.

Alvin Banks, 56, is scheduled to be sentenced June 30. He pleaded guilty to five counts: sponsoring and exhibiting a canine in an animal fighting venture; buying, selling, delivering, possessing, training and transporting canines for participation in an animal fighting venture; attending an animal-fighting venture; being a felon in possession of firearms and ammunition and possession with intent to manufacture and distribute less than 50 marijuana plants.

The plea was announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office, Akron Police Chief James Nice, Summit County Sheriff Steve Barry and Summit County Prosecutor Sherry Bevan Walsh.

Banks is the last of 10 people to plead guilty in federal court related to a dog-fighting operation uncovered in Akron last year.

Federal and local authorities raided a home on Cordova Avenue in Akron on Nov. 15, 2014 as part of an investigation into dog fighting. In addition to firearms, narcotics and more than $52,000 in cash, investigators discovered a blood-stained 16x16 foot ring used as part of an animal fighting venture, as well as two “break sticks” used to pry a dog’s mouth and teeth off another dog when the fight is finished. They also found eight pit bull or pit bull mixes, two of which were covered in blood and had fresh wounds from a fight that occurred just prior to the execution of the search warrant, according to court documents.

The investigation preceding the indictment was conducted by the Akron Police Department, the Federal Bureau of Investigation and the Summit County Sheriff’s Office, with assistance from the Summit County Prosecutor’s Office and the Humane Society of Greater Akron.  The case is being prosecuted by Assistant United States Attorney Linda H. Barr.

A federal grand jury returned a four-count indictment charging a Warren man with heroin distribution and illegal possession of a firearm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Ricardo B. McKinney, 29, faces two counts of distribution of less than 100 grams of heroin, one count of possession with the intent to distribute one kilogram or more of heroin and one count of being a felon in possession of firearms.

The alleged crimes took place earlier this year, 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 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. Attorney Daniel J. Riedl.  The investigation was conducted by the Drug Enforcement Administration, Youngstown Resident Office, and the Warren Police Department, which recovered approximately 1657.2 grams of heroin and two handguns.

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.

Several people have been found guilty and sentenced for violating federal tax laws over the past few months, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of IRS-Criminal Investigation’s Cincinnati Field Office.

As the 2015 tax filing deadline approaches, these cases serve as reminders that there are civil and sometimes criminal penalties to filing erroneous tax returns.

“Tax day is not fun, but the vast majority of Americans who properly report and pay their fair share need to know that we will aggressively prosecute those who shirk or flaunt their obligations,” Dettelbach said.

“The April 15th tax deadline is fast approaching and to build faith in our nation’s tax system, honest taxpayers need to be reassured that everyone is paying their fair share as our system of taxation depends on voluntary compliance by each and every citizen,” Enstrom said.  “IRS Criminal Investigation, together with the U.S. Attorney’s Office, will investigate and prosecute those who violate our tax system.  The joint announcement of these criminal cases should serve as a warning to anyone who might consider evading their federal tax obligations.”

Details on a few cases over the past year:

Brian D. Krantz, 48, of Twinsburg, was sentenced last year to nearly five years in prison for his role in a $8.8 million conspiracy in which he filed false income tax returns claiming refunds to which he was not entitled. Based on those false claims, the U.S. Treasury issued 17 refund checks totaling approximately $3.6 million payable to Krantz and various corporations he controlled, according to court documents.

Sean Houston, 46, of Cleveland, was charged in a 33-count indictment with preparing dozens of false tax returns and falsely claiming more than $133,000 in refunds. In 2010, Houston prepared false tax returns, listing fictitious wages and income-tax withholdings when he knew no wages had been earned and no taxes withheld. The returns also claimed “making work pay” tax credits to which the claimants were not entitled, according to the indictment.

John J. Manore III, 58, of Toledo, was indicted this year on three counts of filing false tax returns. Manore filed tax returns from 2009 through 2011 in which he significantly underreported the amount of taxable income he earned, according to the indictment.

Ghana Johnson, 45, of Pepper Pike, was indicted for claiming $476,000 in fraudulent tax refunds for herself and others. She electronically filed 106 tax returns for 2010 and 2011 in which she falsified wage income, federal income tax withholdings, dependents, exemptions and tax credit information in order to obtain income tax refunds for which neither Johnson nor the individuals she prepared the income tax returns for were entitled, according to the indictment.

Zinara M. Highsmith, 35, of Fayetteville, Georgia, is scheduled to be sentenced in June for filing approximately 2,750 tax returns containing false refund claims of more than $4.8 million. Highsmith ran the Atlanta-based tax-preparation business WE XL LLC. In 2011, Highsmith partnered with a minister in Arkansas in a scheme to file false tax returns. The minister’s role  was to recruit and obtain personal identification information from claimants and to provide the information to Highsmith, who was responsible for the preparation of the false returns. The minister did this by inducing other ministers and church leaders in various states, including Ohio, to solicit members of their congregations to apply for benefits under the so-called government stimulus program. Nearly 1,000 false claims were made on behalf of people living in Northeast Ohio, resulting in false claims of nearly $1.7 million, according to court documents.

Walter Berkovic, of Monsey, N.Y. pleaded guilty last month to one count of failing to file a Report of Foreign Bank and Financial Accounts (FBAR) with the IRS disclosing that he had a financial interest in an UBS financial account in a foreign country for the 2004-2008 income tax years. Citizens and U.S. residents are obligated to report their income from any source, including dividends and interest, regardless of whether the source of their income is from within or outside the U.S. In addition, on Schedule B of the IRS Form 1040, the taxpayer must indicate whether at any time during the calendar year the taxpayer had an interest in or signature authority over a financial account in a foreign country. If this is the case, the taxpayer must indicate the name of the particular country in which the account was located and the taxpayer must file a FBAR for an account with a value of more than $10,000. UBS is a bank with its headquarters in Zurich, Switzerland.  Between 1991 and 2008, Berkovic had a financial interest in or signature authority over two undeclared accounts at UBS with a value of approximately $713,000. The IRS Criminal Investigation Office in Akron investigated the Berkovic case.

A grand jury returned a two-count indictment charging a Mexican national with illegally transporting seven undocumented people, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Enrique Luis Lopez-Rodriguez, 29, was found transporting six Mexican citizens and one Guatemalan citizen on March 17 in Richland County, according to the indictment.

He was charged with illegally reentering the country after officials had previously deported him from the United States.

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

This case is being prosecuted by Assistant United States Attorney Matthew J. Cronin.  The case was investigated by Homeland Security Investigations – Immigrations and Custom Enforcement and the Richland County Sheriff’s Department.

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

A federal grand jury returned a four-count indictment charging two Northeast Ohio men with multiple criminal counts related to a bank robbery in Richmond Heights last year, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The grand jury charged Larry Hewitt, 47, of Garfield Heights, with armed bank robbery, brandishing a firearm in commission of a bank robbery, and two counts of being a felon in possession of a firearm.  The grand jury charged Marcus Wright, 33, of Cleveland, with armed bank robbery. The charges stem from the November 6, 2014, robbery of the Ohio Saving Bank branch located at 720 Richmond Road, Richmond Heights, Ohio

In 2000, Defendant Larry Hewitt pleaded guilty to robbing the same bank.

Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the Federal Bureau of Investigation, the Richmond Heights Police Department, and other local law enforcement agencies.

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

A Cleveland man was indicted on bank fraud charges related to the fraudulent purchase of a Richfield home for nearly $1.2 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Damone Tyson, 49, was indicted on one count of conspiracy to commit bank fraud and one count of bank fraud. His actions resulted in a $631,854 loss to IndyMac Bank, according to the indictment.

Tyson served as president an agent for a consulting company known as Athletes & Entertainers, Inc. in Cleveland. The company represented that it provided financial, personal and business advice to professional athletes and entertainers, according to the indictment.

In 2007, Tyson directed a straw buyer to purchase the residential property at 3400 East Galloway Drive in Richfield. The straw buyer paid $1,189,000 for the home, which Tyson used as his primary residence. The straw buyer was able to arrange financing through only after making several false statements on loan applications about her income, savings, job title and other topics. These false statements were made at Tyson’s direction, according to the indictment.

The loans, obtained by the straw buyer at Tyson’s direction, eventually went into foreclosure, causing the loss to IndyMac Bank, according to the indictment.

Assistant United States Attorneys Mark Bennett and Derek Kleinmann are  prosecuting the case 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 where it is the government's burden to prove guilt beyond a reasonable doubt.

A two-count indictment was filed charging a California man with crimes related to methamphetamine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Jose Vega-Farias, 27, of Strathmore, California, was indicted on one count of conspiracy to distribute and possess with the intent to distribute methamphetamine, and one count of attempted possession with the intent to distribute methamphetamine.

Count 1 of the indictment alleges that from as early as approximately February 25, 2015, to on or about March 3, 2015, Vega-Farias and others conspired to distribute and to possess with the intent to distribute 500 grams or more of methamphetamine by shipping a parcel via U.S. Postal Service Express Mail from California to Ohio.  Jose Vega-Farias accepted delivery of the parcel in Massillon, Ohio, and opened the package. Count 2 alleges that on or about March 3, 2015, Vega-Farias attempted to possess 887.5 grams of methamphetamine.

If convicted, a 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 investigation preceding the indictment was conducted by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Samuel A. Yannucci.

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

A grand jury returned a two-count indictment charging William A. Marino, 26, of Akron, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct, and with possessing images of child sexual abuse, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

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

The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the FBI Akron Resident Agency.

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

A federal grand jury returned a one-count indictment charging Darious Robinson, aka Darius Robinson, 26, of Akron, with possession with intent to distribute heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that on March 13, 2015, Robinson was found to have in his possession a plastic bag containing three individually wrapped plastic bats which contained approximately 4.5 grams of heroin.

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 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 investigation preceding the indictment was conducted by the Federal Bureau of Investigation.  The case is being prosecuted by Assistant United States Attorney Linda H. Barr.

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.

REQUEST FOR INFORMATION

 

INDEPENDENT MONITOR

Negotiated Court Enforceable Settlement Agreement

Regarding the Cleveland Division of Police

March 26, 2015

 

 

I. DESCRIPTION

 

The United States and the City of Cleveland (“City”) currently are in negotiations to work toward a court-enforceable settlement agreement (“Consent Decree” or “Agreement”) to address findings issued by the United States on December 4, 2014.  The parties have publicly announced that they will jointly select an independent monitor to assess and report to the parties and the Court whether the requirements of the negotiated Agreement are being fully implemented.

 

The United States Department of Justice, through the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for the Northern District of Ohio, and the City of Cleveland (collectively, the “Parties”) are seeking interested individuals, firms, or organizations to serve as the Independent Monitor (“Monitor”), either as the lead Monitor or as a subject-matter expert on the Monitor’s team.

 

The Monitor and his or her team will assist the United States District Court for the Northern District of Ohio (“Court”), the Parties, and the Cleveland community in assessing the implementation of the Agreement in an independent and transparent manner.  Once selected by agreement of the Parties and appointed by the Court, the Monitor and his or her team will assess implementation, provide technical assistance, and issue public reports on the City’s compliance with the Agreement. 

 

THIS IS A REQUEST FOR INFORMATION ONLY. This Request is issued solely for information and planning purposes.  It does not constitute a Request for Proposal (“RFP”) or a promise to issue an RFP in the future.  This Request is not part of, and shall not be governed by, any formal municipal, state, or federal procurement process.  Further, this Request does not commit the Parties to select an individual, firm, or organization to serve as the Monitor or a member of the Monitor’s team.  The Parties may seek and solicit information regarding interested parties through means other than this Request.  Responders are advised that the Parties will not pay for any information or administrative costs incurred in response to this Request; all costs associated with responding to this Request will be solely at the interested party’s expense.  Not responding to this Request does not preclude participation in any future RFP, if any is issued, nor does it eliminate an individual, firm, or organization from being considered to serve as the Monitor or a member of the Monitor’s team.

 

 

 

II. BACKGROUND

 

On December 4, 2014, the Department of Justice announced its findings resulting from a civil investigation it conducted into use of force by the Cleveland Division of Police (“CDP”).  The investigation was conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, 42 U.S.C. § 14141.  The Department of Justice concluded that it had reasonable cause to believe that CDP engages in a pattern or practice of unreasonable use of force.  The City does not agree with the Department’s findings concerning a pattern or practice of unreasonable use of force by the CDP.  Nevertheless, the City and CDP cooperated in the investigation, and the Parties have agreed to work collaboratively in an effort to craft an Agreement that will ensure constitutional policing.  The Parties affirmed their commitment to reaching an Agreement in a Statement of Principles signed on December 2, 2014 and to selecting an independent monitor to assist in assessing compliance with the terms of the Agreement being negotiated by the parties.

 

The Agreement will be submitted to the United States District Court in the Northern District of Ohio for approval and entry as an order.  It is anticipated that the Court will issue an Order that will include steps to implement, monitor, and enforce such Agreement negotiated by the Parties.

 

The Findings Letter and Statement of Principles, and other related documents, can be found on the following webpage: http://www.justice.gov/crt/about/spl/findsettle.php.

 

III. MONITOR’S DUTIES AND RESPONSIBILITIES

 

The Agreement will provide for a Monitor to assist the Court, the Parties, and the Cleveland community in assessing and assisting the City’s compliance with the terms of the anticipated Agreement.  The Agreement will specify the duties and responsibilities of the Monitor, who will be subject to the supervision and orders of the Court.  For the purposes of this Request for Information, you should assume that the scope of the Agreement anticipated between the parties will focus on issues related to the subject areas described in the Unites States’ Findings Letter.

 

The Monitor will provide objective, cost-effective, and thorough assessments of whether the terms of the anticipated Agreement are being met, and whether implementation of the Agreement is resulting in constitutional policing by the CDP and increased community trust of CDP.  The Monitor also will assist in compliance by offering technical assistance, issuing recommendations, and preparing public reports on the Agreement’s implementation.  The Monitor will not replace or assume the role and duties of the City or CDP, including the Chief of Police, or any other City official. The Chief of the CDP will always retain full authority to run the Division of Police in accordance with the laws of Cleveland.

 

 

 

IV. qualifications

 

Experience in the following areas may be useful, although lack of experience in any particular area will not disqualify a candidate.

 

• law enforcement practices including use of force and force investigations, community policing, crisis intervention and de-escalation techniques, training, and search and seizure practices;

 

• experience evaluating, developing, or implementing processes for supervisors and managers to oversee accountability in a large organization;

 

• experience managing or overseeing law enforcement personnel;

 

• monitoring, auditing, investigating, or otherwise reviewing performance of organizations;

 

• evaluating organizational change and institutional reform, including applying qualitative and quantitative analyses to assess progress and performance;

 

• experience monitoring and ensuring compliance with settlement agreements, consent decrees, or court orders;

 

• working with government agencies, municipalities, collective bargaining units, elected officials, civilian oversight bodies, and community members interested in policing issues;

 

• engaging with diverse community stakeholders to promote civic participation, strategic partnerships, and community policing;

 

• mediation and dispute resolution;

 

• use of technology and information systems to support and enhance law enforcement;

 

• appearing in court as a judge, monitor, counsel, or expert witness, or providing other types of testimony;

 

• providing formal and informal feedback, technical assistance, training, and guidance to law enforcement agencies;

 

• experience reviewing policies, procedures, manuals, and other administrative orders

or directives, and training programs related to law enforcement practices; and

 

• experience with municipal budgetary and fiscal issues.

 

 

 

V. REQUESTED INFORMATION

 

The Parties request that interested individuals, firms, or organizations submit information to assist the Parties in identifying potential candidates to serve as Monitor or as subject-matter experts on the Monitor’s team.  Interested individuals or firms may provide a resume and a letter of interest describing their current or recent experience relevant to the qualifications described above.  Please describe any areas of expertise in which you may want to retain additional staff.   If you know any specific individuals or entities, including subcontractors and consultants, who will assist the interested party in fulfilling the duties and responsibilities of the Monitor, please include a brief summary of each team member’s relevant background or experience and attach a resume.  If the identities of the individuals or entities that would assist in performing the monitoring function are unknown at the present time, please state the areas of expertise that will be sought and the process that will be used to obtain the necessary services and assistance.  If you have performed similar services as part of a team before, you can describe the nature and qualifications of the team members employed.

 

As the Parties negotiate toward an Agreement, the Parties will likely request supplemental information, including references, proposed methodologies, and budget estimates.  The Parties will provide additional information on the scope of the anticipated Agreement at that time.  Candidates considered for Monitor or as a subject-matter expert on the Monitor’s team will be required to disclose all actual and potential conflicts of interest.

 

VI. INFORMATION RESPONSE AS A PUBLIC RECORD

 

Under the laws of the State of Ohio, all parts of the information response, other than trade secret or proprietary information, may be considered a public record which, if properly requested, the City must make available to the requester for inspection and copying.  Additionally, the Parties may choose to share all or some of the submissions with the public.  Therefore, to protect trade secret or proprietary information, the Responder should clearly mark each portion of each page—but only that portion of each page—of its information response that contains that information.  The City will notify the Responder if such information in its information response is requested, and will make every attempt to protect trade secret or proprietary information by citing to the applicable exemption in Ohio’s Public Records Laws.  Blanket marking of the entire information response as “proprietary” or “trade secret” is not acceptable and will not protect the entire response unless each part of the entire response is in fact trade secret or proprietary information.  The City is not obligated to protect information that is obviously not a trade secret, obviously not proprietary, and obviously public, even if labeled as such.  Upon submission of an information response that contains clearly marked trade secret or proprietary information, the Responder is agreeing to defend and indemnify the City against any lawsuit or claim that the City improperly withheld a public record based upon the Responder marking it as a trade secret or proprietary information.

 

Letters of interest should be submitted as soon as possible in electronic format (preferably pdf) to the Parties as follows:

 

For the United States Department of Justice:

 

Carole S. Rendon                                                        Rashida J. Ogletree

First Assistant U.S. Attorney                                     Trial Attorney

U.S. Attorney’s Office                                               U.S. Department of Justice

Northern District of Ohio                                           Civil Rights Division

801 West Superior Avenue                                         Special Litigation Section

Suite 400                                                                     950 Pennsylvania Avenue, NW

Cleveland, Ohio 44113                                               Washington, D.C. 20530

Carole.Rendon@usdoj.gov                                        Rashida.Ogletree@usdoj.gov

 

For the City of Cleveland:

 

Barbara A. Langhenry

Director of Law

City of Cleveland

Department of Law

601 Lakeside Avenue. Suite 106

Cleveland, Ohio 44114

Blanghenry@city.cleveland.oh.us

A Cleveland man was sentenced to nearly 13 years in prison for his role in a conspiracy to use false identities, including those of people incarcerated, to file nearly $2 million worth of false tax claims, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of IRS Criminal Investigation, Cincinnati Field Office.

“This defendant stole identities and ripped off taxpayers,” Dettelbach said.

 

“This 12-plus year sentence demonstrates our unwavering commitment to protecting the interests of law-abiding taxpayers,” Enstrom said. “We will continue to partner with the U.S. Attorney’s Office and investigate the criminals who engage in such brazen and fraudulent conduct, ensuring that the only citizens who receive tax refunds are those who are entitled to them.”

 

Kenneth A. White, 48, was sentenced to 155 months in federal prison and ordered to pay $342,365 in restitution after previously pleading guilty to multiple criminal counts.

White recruited people to use as claimants on some false tax returns, often with the promise of substantial refunds. White also obtained names, Social Security numbers and other personal identifiers of other people to use as claimants, including people in prison or jail. In some cases, this was done without the knowledge or consent of these other people, according to court documents.

Gwendolyn N. White, at the direction of Kenneth White and for a fee, prepared and electronically filed 10 false income tax returns for the year 2008 in the name of the claimants. The total amount claimed in the returns was approximately $1,995,687, according court documents.

Gwendolyn N. White, 32, of Cleveland, was previously sentenced to nearly four years in prison for her role in the conspiracy.

This case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the Internal Revenue Service – Criminal Investigations.

A Kentucky man was sentenced to 30 years in prison for taking a 13-year-old across state lines to engage in illicit sexual activity, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.

Shawn J. Bivens, 34, of Vanceburg, Kentucky, previously pleaded guilty to sexual exploitation of a child, transporting visual depictions of minors engaged in sexually explicit conduct, transportation of a minor to engage in illegal sexual activity and travel with intent to engage in illicit sexual conduct.

“Bivens’ actions were predatory and this sentenced is well deserved,” Dettelbach said.

"Bivens is a predator and his actions in this case were horrific,” Anthony said. “We are thankful that through coordinated efforts with the Lorain County Sheriff’s Office and Kentucky law enforcement,  we were able to bring his victim home safely. "

From January 21, 2014, through on or about February 28, 2014, and again from on or about February 28, 2014, through on or about March 2, 2014, Bivens, used, persuaded, induced, enticed and coerced a minor—that is, a 13 year-old girl—to engage in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct, and knowing and having reason to know that such visual depiction would be transported, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce, according to court documents.

From on or about February 28, 2014, through on or about March 2, 2014, Bivens knowingly traveled in interstate commerce, from Kentucky to Ohio, for the purpose of engaging in illicit sexual conduct with a 13-year-old girl. During the same period, he also knowingly transported, using any means of interstate and foreign commerce and in and affecting interstate and foreign commerce, numerous computer files, which files contained visual depictions of a real minor engaged in sexually explicit conduct, according to court documents.

From on or about May 3, 2014, through on or about May 8, 2014, Bivens knowingly transported an individual who had not attained the age of 18 years, that is a 13-year-old girl, in interstate commerce from the Ohio to Kentucky, with the intent that such 13-year-old girl engage in sexual activity for which Bivens could be charged with a criminal offense.

This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Elyria Office of the Federal Bureau of Investigation and the Lewis County, Kentucky, Sheriff’s Department.

An Avon man was sentenced more than 12 years in prison for robbing two banks in Elyria and calling in a bomb threat to Elyria High School, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.

Brett L. Benson, 41, robbed Talmer Bank & Trust on March 19, 2014, and Dollar Bank on March 24, 2014. He also called in a bomb threat to the Elyria High School on the same date as the second bank robbery, according to court documents.

Assistant United States Attorneys Matthew B. Kall and Matthew J. Cronin are prosecuting the case following an investigation by the Federal Bureau of Investigation, the Elyria Police Department, and other local law enforcement agencies.

A former respiratory therapist at a Toledo hospital was indicted for obtaining individually identifiable health information and unauthorized access of a protected computer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Jamie Knapp, 25, of Adrian, Mich., allegedly accessed the information without authorization between May 2013 and March 2014, 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, 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 Federal Bureau of Investigation, Toledo – Resident Agency.  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.  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 pleaded guilty in federal court to fraud, money laundering and violating the Clean Air Act by failing to remove asbestos prior to demolishing a former factory in Cleveland, law enforcement officials said.

Christopher Gattarello, 51, admitted to defrauding a Louisiana company out of nearly $1.2 million. He is scheduled to be sentenced June 19.

“Our neighborhoods are not garbage dumps,” said Steven Dettelbach, U.S. Attorney for the Northern District of Ohio. “Mr. Gattarello’s actions show his total disdain for the law and for the people who live near the factory. He will be held accountable for his actions.”

"This defendant had total disregard for the environment and cared only about his own illicit financial gain," said Steven D. Anthony, Special Agent in Charge of the FBI's Cleveland office.

"Exposure to asbestos endangers human health and can prove fatal,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio.  “As a result of the defendant’s actions, debris containing asbestos fibers piled up outside and was exposed to the elements, threatening dozens of nearby businesses and homes.  Today’s guilty plea demonstrates that EPA and its partner agencies are prepared to prosecute those who 'cut corners' by avoiding the costs of handling asbestos safely and legally.”

“This was one of the most egregious examples of open dumping of solid waste ever seen in the state of Ohio; these actions will not be tolerated,” said Ohio EPA Director Craig W. Butler. “I would like to commend all those involved in this case from the Northeast Ohio Environmental Crimes Task Force which includes Ohio EPA’s Special Investigations Unit, along with the invaluable efforts of local, state and federal criminal investigatory and prosecutorial agencies.”

“IRS-Criminal Investigation is committed to unravelling complex financial schemes and following the money to ensure those who profit from crime are held accountable,” said Kathy Enstrom, Special Agent in Charge, Internal Revenue Service – Criminal Investigations.

According to court documents:

Gattarello owned and controlled several municipal garbage-hauling businesses in greater Cleveland, including Reach Out Disposal, All Points Rubbish Disposal and Axelrod Rubbish Recycling. In June 2011, Gattarello, on behalf of All Points, leased the former National Acme facility at 170 East 131st Street in Cleveland. The 570,000 square-foot facility was built in 1917 and was used for manufacturing for nearly a century. It is located near many homes and a school. Gattarello represented to the lessor that paper and cardboard waste would be recycled at the facility.

In July 2011, a company estimated removing asbestos from the facility would cost $1.5 million.

Around August 2011, Gattarello directed paper and cardboard waste, as well as municipal garbage, be delivered to the facility for recycling. Over the next several months, more garbage, paper and cardboard were delivered than could be handled, and Gattarello had the waste moved inside. By April 2012, most of the facility was filled with garbage.

In May 2012, Gattarello, on behalf of Reach Out, entered into a contract to purchase the facility. Gattarello intended to demolish the facility and sell any metal removed as scrap.

In July 2012, company officials submitted a notice of demolition with the Cleveland Division of Air Quality stating there was no asbestos in the National Acme facility. About 10 days later, the CDAQ rejected the notice because it was incomplete and stated demolition “may not begin” until a proper notice was submitted and approved. About 10 days after that, on July 21, 2012, Gattarello directed the demolition to begin.

Asbestos fibers were released into the environment during demolition. Debris accumulated outside the facility from demolition and asbestos in the piles were exposed to the wind and elements.

Additionally, Gattarello pleaded guilty to one count each of conspiracy to commit wire fraud and money laundering.

AIM Business Capital LLC is a financial company based in Louisiana that specializes in “factoring” – a practice in which AIM purchases accounts receivable, such as invoices billed to customers for goods and services. Businesses that factored their receivables with AIM received immediate cash. AIM, like other factoring companies, purchase the receivables at a percentage discount of the invoice. AIM made a profit by collecting the full amount of the invoice from the business’s customers, according to court documents.

In 2011 and 2012, Robert Shaw, on behalf of Reach Out and Axelrod, entered into contracts with AIM for the purchase of receivables from Reach Out and Axelrod. Gattarello directed the creation of false and fraudulent invoices for the companies and directed that they be submitted to AIM. In some cases, Gattarello and Shaw directed other employees to create false letters attesting to the validity of the invoices, which Shaw forwarded to AIM. The loss to AIM was nearly $1.2 million, according to court documents.

Shaw’s case is pending.

The case is being prosecuted by Assistant United States Attorneys Brad Beeson and James V. Moroney following an investigation by the FBI, the U.S. and Ohio Environmental Protection Agencies, the Ohio Bureau of Criminal Investigation and the Internal Revenue Service.

A Cleveland man was sentenced to 15 years in federal prison today for illegally having a firearm, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Cleveland Police Chief Calvin D. Williams and ATF Special Agent in Charge Donald Soranno.

Malcolm L. Hoyle, 27, pleaded guilty last year to one count of being a felon in possession of a firearm and ammunition.

Hoyle possessed a .40-caliber pistol and ammunition on July 8, 2014, despite convictions in the Cuyahoga County Court of Common Pleas for involuntary manslaughter (2003), felonious assault (2005), two convictions for trafficking (both 2008) and attempted failure to comply (2009), according to court documents.

“We will continue to prosecute the worst of the worst, violent offenders who are prohibited from having firearms but carry them anyway,” Dettelbach said. “The Cleveland Division of Police and  ATF are to be commended for getting a violent criminal off the street.”

“The Cleveland Division of Police in partnership with the U.S. Attorney's Office work diligently to protect the public from violent offenders,” Williams said. “It is imperative that the resulting cases are prosecuted to the fullest, as in this case, where together we will take a career criminal off of our streets for a substantial time.”

“I would like to recognize the dedicated work of the Cleveland Division of Police on this case,” Soranno said.  “Cooperation with our law enforcement partners acts as a multiplier in our efforts to remove violent criminals from the streets and make our communities safer.”

This case is being prosecuted by Assistant U.S. Attorney Kelly L. Galvin following an investigation by the Cleveland Division of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

An Akron man was sentenced to nearly four years in prison fo illegally possessing a firearm, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.

Joe L. Fletcher, age 27, was sentenced to 46 months in prison by U.S. District Judge Christopher Boyko. Fletcher previously pleaded guilty to having a Springfield Armory .45-caliber semi-automatic pistol on Feb. 7, 2014, despite a previous conviction for cocaine trafficking.

"This man had no business possessing a firearm because of his criminal record," Dettelbach said.

"Joe Fletcher is considered to be one of Akron's most dangerous individuals," Akron Police Chief James Nice said. "As a result, the APD collaborated with the U.S. Attorney's Office to bring federal charges against him. Our city is safer today because of this federal conviction."

This case was prosecuted by Assistant U.S. Attorney Edward Feran following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Akron Police Department.

An Akron physician was sentenced to more than five years in prison for illegally distributing tens of thousands of doses of prescription painkillers, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Joseph P. Reagan, Special Agent in Charge of the Drug Enforcement Administration’s Detroit office.

Brian Heim, 56, was sentenced to 63 months in prison. He previously pleaded guilty to one count of conspiracy to distribute controlled substances and 20 counts of distribution of controlled substances.

“Our region is awash in opioids that have brought heartbreak and suffering to countless families,” Dettelbach said. “We will continue to work with the DEA to identify and prosecute physicians who illegally divert pills.”

Heim was registered with the State of Ohio Medical Board as a medical doctor specializing in family medicine, obstetrics and gynecology. From August 2011 through October 2012, Heim and others agreed to illegally distribute thousands of doses of prescription painkillers to customers from Heim’s office at 3562 Ridge Park Drive, Suite A, in Akron, according to court documents.

Heim distributed and dispensed more than 30,000 tablets of Oxycodone, Oxycontin and Opana to various individuals for which there was not a legitimate medical purpose. He did this by one or more of the following manners: without adequate verification of the patient’s identity or medical complaint; without adequate and reliable patient medical history; without performance of a complete or adequate examination; without establishment of a true diagnosis; without the use of appropriate diagnostic or laboratory testing, and others, according to court documents.

Heim and others did this by using pre-signed blank prescription forms upon which Heim’s staff would fill in the controlled substance and dosage to be prescribed, according to court documents.

The case was prosecuted by Assistant U.S. Attorney Vasilie C. Katsaros following an investigation by the Drug Enforcement Administration.

An indictment was unsealed today charging a Toledo man with crimes related to child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Dennis Orzechowski, 50, is charged with receiving and distributing child pornography between March 2014 and April 2014 and possessing child pornography on September 11, 2014.

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

The investigating agency in this case is the United States Secret Service, Toledo Resident Agency, and the Sylvania Police Department.  The case is being handled by Assistant United States Attorney Noah P. Hood.

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

A federal grand jury returned a one-count indictment charging Hortencia Decaldera, 55, of Indianapolis, and Rodolfo Rodriguez, aka Oscar Rodriguez, 32, of Los Angeles, with possession with the intent to distribute approximately three kilograms of cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

On February 14, 2015, Decladera and Rodriguez were stopped for speeding by the Ohio State Highway Patrol in Stark County, Ohio.  A drug canine officer was called to the scene at which time the dog alerted on the vehicle.  A search of the F-150 revealed a hidden compartment inside the cab.  The occupants were arrested.

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

The investigation preceding the indictment was conducted by the Ohio State Highway Patrol, the Stark Safe Street Task Force and the Cleveland Division of the Federal Bureau of Investigation.  The matter is being prosecuted by Assistant United States Attorney Teresa Riley.

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

A federal grand jury returned an indictment charging Selvis Velazquez-Villanueva, a 28 year-old Honduran citizen, for entering the United States illegally after previously being deported. 

Velazquez-Villanueva, who entered the United States through Mexico after being deported in 2007, was found in Lorain, Ohio, during a traffic stop, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Velazquez-Villanueva had unlawfully reentered the United States after being previously deported on May 16, 2007.

Assistant United States Attorney Karrie D. Howard is prosecuting the case, following an investigation by the United States Border Patrol, Department of Homeland Security.

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

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

A Canton couple was sentenced to prison for defrauding the United State Department of Education out of more than $2.3 million by obtaining fake high school diplomas for prospective students, fraudulently applying for financial aid on their behalf by representing that the students had the necessary educational credentials, and then enrolling them in the college that the couple operated, law enforcement officials said.

John “Richard” Ceroni, 65, was sentenced to 69 months in prison. Adale “Marie” Cernoni, 63, was sentenced to 55 months in prison. They were ordered to pay more than $2.3 million in restitution.

The Ceronis pleaded guilty to conspiracy to commit mail fraud and conspiracy to launder money. Richard Ceroni also pleaded guilty to obstruction.

The Ceronis were co-founders Carnegie Career College. From at least 2003, Carnegie College held itself out to the public as a private not-for-profit college that offered a select number of associate degrees, as well as various “certificate” programs in areas such as blood drawing.

Around 2002, Richard Ceroni applied with the Department of Education to participate in the federal student financial aid (SFA) program. That application was approved in December 2003, according to court documents.

Richard Ceroni was dean and director of education at Carnegie College, while Marie Ceroni was the director of Carnegie and was responsible for financial matters at the school. Richard Ceroni was also founder of Historical Chapel Ministries (HCM), which was registered as a tax-exempt charitable organization. It had offices in the same building as Carnegie College in Suffield, Ohio. Both Ceronis held themselves out as ministers of HCM, but it did not have regular services or congregants, according to court documents.

In February 2007, Carnegie College opened a branch “campus” that operated in a single-family home in Canton. In 2010, Carnegie moved its branch campus to a commercial building in North Canton, which also hosted a variety of other Ceroni ventures, including a driving school and a massage service, according to the indictment.

From June 2007 through May 2012, the Ceronis fraudulently obtained approximately $2.3 million from the Department of Education by submitting applications for SFA funds that stated students at Carnegie College had obtained valid high school diplomas; they also falsely told prospective students they would earn a valid high school diploma at the same time they attended Carnegie College and that such a diploma would be paid for by a “scholarship from a church” in order to increase enrollment and access to SFA funds, according to court documents.

The Ceronis recruited students who had not earned high school diplomas or G.E.D. certificates, and thus were not eligible for SFA funds, and submitted fraudulent financial aid documents to the Department of Education. They used online high schools, including Australia-based Adison High School, to purchase fake high school diplomas and coursework transcripts for students who were not required to attend any classes or complete any coursework, according to court documents.

Marie Ceroni paid Adison High School, which provided diplomas using the graduation date on which the student would have graduated from high school had they completed high school in the normal course. Sometimes those dates predated general public access to the Internet, according to court documents.

The Ceronis comingled fraudulently obtained money in several accounts and used that money to fund personal expenditures and expand Carnegie College. Between February 2011 and February 2012, for example, Marie Ceroni made more than $475,000 in large cash withdrawals from two accounts that operated under the Historical Chapel Ministries name. Money from those accounts was used to make under-the-table cash payments to the defendants and other Carnegie College employees who the Ceronis claimed were unpaid volunteers, according to court documents.

There were also payments using comingled funds from a several accounts, including: on July 8, 2010, Marie Ceroni wrote a check for $100,038 to pay off a personal line of credit; on Dec. 17, 2010, Marie Ceroni wrote a check for $119,230 to pay off a personal line of credit that was used, among other things, to purchase two Jeep vehicles; in 2012, the Ceronis wrote check to pay credit card balances that included charges for fake Adison High School diplomas and transcripts; in 2010, Marie Ceroni made and caused to be made electronic fund transfers to pay for credit cards that included charges of more than $4,300 from Royal Caribbean Cruises and more than $800 from Airtran; in 2011, similar electronic transfers were made to pay off credit card charges from stores including Victoria’s Secret, Wine & Spirits, Simply Tans and the University of Akron bookstore; on July 11, 2011, Marie Ceroni wrote a check for $15,650 to Jared Jewelers; on Nov. 22, 2011, she wrote a check for $24,808 to Zale’s to pay for wedding bands for the couple’s daughter; on Jan. 12, 2012, she wrote a check for $3,806 to Jared Jewelers and nine days later wrote another check to Jared Jewelers for $9,782, according to court documents.

This case is being prosecuted by Assistant U.S. Attorneys Rebecca Lutzko and Robert Patton following an investigation by the United States Department of Education – Office of Inspector General, the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.

Twenty-six people, most of them from the Toledo area, were indicted in federal court for their roles in a wide-ranging conspiracy in which stolen computers, smart phones and other electronics were fenced at stores in Toledo and resold in Michigan and the Middle East, law enforcement officials said.

Some members of the conspiracy used firearms, threats and violence as part of their operation. Others illegally cashed millions of dollars’ worth of checks at their stores. Others sold counterfeit clothing from their stores. And members of the conspiracy worked together at various Toledo stores to launder money, according to the indictment.

The indictment was announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office, Toledo Police Chief George Kral, Lucas County Sheriff John Tharp and Troy Stemen, Assistant Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

Indicted are Mamoun Awwad, 43, of Maumee; Adnan Awad, 33, of Toledo; Ihab Awad, 31, of Toledo; Ayman Awwad, 42, of Maumee; Anwar Awad, 39, of Toledo; Kamal Awwad, 40, of Toledo; Fady Awwad, 34, of Toledo; Aref Kahala, 23, of Maumee; Saif Alkhatib, 23, of Perrysburg; Haney Sarsour, 36, of Dearborn, Mich.; Ameen Sarsour, 31, of Dearborn, Mich.; Michael Safadi, 37, of Westland, Mich.; Freddy Delatorre, 32, of Toledo; Jeffrey Houttekier, 24, of Toledo; Ahmed Abdulateeef, 47, of Toledo; Ehab Adbdelsalam, 22, of Toledo; Timothy Fields, 32, of Toledo; Ali Abdallah, 34, of Dearborn, Mich.; Mustafa Deebajah, 27, of Dearborn, Mich.; Essa Allawneh, age unknown, of Amman, Jordan; Adli Alawneh, age unknown, of Amman, Jordan; Omar Dari, 54, of Ann Arbor, Mich.; Mutaz Almumani, 29, hometown unknown; Fadi Qasis, 30, hometown unknown; Mayssam Kaddoura, 36, of Toledo and Jamal Abdel Aziz, 44, of Toledo.

Mamoun Awwad, Adnan Awad, Ihab Awad, Ayman Awwad, Anwar Awad, Kamal Awwad,  Fady Awwad and Aref Kahala are family members who own and operate various businesses in Toledo, including clothing stores, electronics stores and grocery/convenience stores. They use these businesses to facilitate various criminal schemes, including the sale of counterfeit goods, trafficking stolen goods and unlawfully cashing checks, according to the indictment.

The Awwad family enterprise bought stolen electronics, such as iPhones, iPads and Samsung cellular phones, from drug addicts and low-income people, then altered the electronics’ hardware and software so they could be registered on cellular networks. The Awwad family enterprise then sold the stolen electronics locally, in Michigan and overseas. Mamoun Awwad did this, in part, by meeting with crew members of Royal Jordanian Airlines in Detroit to have them transport electronics and cash, according to the indictment.

The goal of the conspiracy was to generate cash and send it overseas to establish a series of residences in Rammoun, Palestine, for members of the Awwad family enterprise and their families to own and occupy, according to the indictment.

The family unlawfully cashed checks at the Reynolds Quick Stop and other grocery/convenience stores as a way to generate revenue and launder proceeds from the sale of counterfeit and stolen goods. The family cashed more than $11 million in checks at various store locations between 2011 and 2014, according to the indictment.

The family also knowingly sold shoes, sweat suits, t-shirts and other clothing bearing counterfeit logos and trademarks of brands including Nike, Timberland, Coogi, Ralph Lauren, RoccaWear, Ecko, Lacoste, Dolce Gabbana and others, according to the indictment.

The Awwad family enterprise used violence and threats of violence to maintain control of the stolen goods market in Toledo. For example, Mamoun Awwad threatened someone with a 9 mm pistol while an employee held a knife of their throat. In another incident, Mamoun Awwad assaulted someone outside a cellular phone store because that person tried to sell seven stolen iPhones without Mamoun Awwad’s permission, according to the indictment.

The conspiracy took place from 2006 through 2015, according to the indictment.

Count 1 charges a RICO conspiracy. Count 2 charges conspiracy – interstate and foreign transportation of stolen property. Count 3 charges conspiracy to smuggle goods from the U.S. Count 4 charges conspiracy to commit access device fraud. Count 5 charges conspiracy to traffic counterfeit goods. Count 6 charges conspiracy to commit money laundering.

“This is a sophisticated crime and money-laundering racket whose reach stretched from Ann Arbor to Amman,” Dettelbach said. “According to the indictment, they bought stolen electronics, often from drug addicts in Toledo, and shipped them out of the state and country for millions of dollars.”

“The Awwad criminal enterprise used force and intimidation to control their complex network of illegal schemes all in an effort to line their bank accounts with millions,” Anthony said. “We are pleased the strength of our long standing local, state, and federal  law enforcement partnerships has successfully dismantled a pervasive criminal enterprise that has plagued the citizens of Toledo and Lucas County for more than a decade."

“I think an operation such as this shows how well local law enforcement works with the federal government,” Kral said. “Multiple arrests, simultaneous search warrants, and complex investigations require synergy and cooperation. One agency alone simply can’t get it done. The working relationship between TPD and our federal partners has never been better. The citizens of the City of Toledo are much safer thanks to this multidisciplinary approach to policing."

“The 26 individuals indicted went to great lengths to create the illusion of a successful family enterprise.  In reality, what they created was nothing more than a false front, hiding a tangled web of financial lies,” Stemen said. “This massive federal indictment has exposed these individuals for who they really are, thugs and thieves.  It would not have been possible without the highly successful collaboration of IRS-Criminal Investigation and our federal and local law enforcement partners; including the Toledo Police Department and the Lucas County Sheriff’s Office, both of which played critical roles in the success of this investigation.”

This case is being prosecuted by Assistant U.S. Attorneys Duncan Brown and Michael Freeman following an investigation by the FBI, Toledo Police Department, Lucas County Sheriff’s Office and IRS-CI.

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

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

Two Toledo-area men were indicted for wire fraud related to stealing more than $1 million from hundreds of people through a fraudulent loan-modification scheme, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.

Indicted are Jason J. Keating, 36, of Toledo, and Christopher J. Howder, 37, of Perrysburg. They worked at Making Home Affordable USA (MHAUSA) from 120 10th Street in Toledo, where Keating was self-described president and Howder was the self-described underwriting manager.

The company used various names but homeowners were told MHAUSA had a very high rate of success and that customers could achieve modified interest rates as low as 2 percent, according to the indictment.

Prospective participants were told there was a flat fee for service, generally between $495 and $795. Participants were told to stop making monthly mortgage payments to their lenders and instead to pay a percentage of their mortgage to MHAUSA, according to the indictment.

Participants were told MHAUSA would hold these payments in a “stimulus reserve” account to demonstrate the participants could reliably make payments, and that once the loans were modified, the money would be turned over to the lenders, according to the indictment.

The money obtained through the fraud was spent on concession at professional sports venues, restaurants, cash withdrawals, gentlemen’s clubs, a tanning salon Las Vegas hotel, a jewelry store and a lingerie store, according to the indictment.

“These defendants took $1 million from people struggling to hold onto their homes,” Dettelbach said.

“They used money obtained through fraud to pay for expensive restaurants and vacations,” Anthony said.

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, Toledo, Ohio and the Department of Housing and Urban Development – Office of Inspector General.  The case is being handled by Assistant United States Attorney 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.

An indictment was filed charging John J. Manore, III, 58, of Toledo, with filing false tax returns, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and  Troy Stemen, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office

“With the April 15th tax deadline looming, it is important for the public to have confidence that when they pay their taxes, their neighbors and competitors will do the same,” Stemen said.  “Filing false and fraudulent federal tax returns to avoid paying taxes is a crime and one that defrauds our government.  This practice is unfair to honest taxpayers who willingly pay their fair share of taxes.”

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 Internal Revenue Service – Criminal Investigations, Toledo, Ohio.  The case is being handled by Assistant United States Attorney 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.

A 12-count federal indictment was unsealed today charging Lawrence E. Tipton, 48, Angela G. Tipton, 46, both of Copley, and Ebony Brown, 41, of Stone Mountain, Georgia, with conspiracy to defraud the United States of America, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment further charges Lawrence and Angela Tipton with conspiracy to evade payment of taxes and attempt to evade and defeat the payment of taxes.  Ebony Brown and Lawrence Tipton are charged with conspiracy to distribute cocaine, and Brown is also charged with three counts of distributing cocaine. 

Finally, all three defendants are charged in various counts with engaging in unlawful monetary transactions.

From around April 2003 through December 31, 2014, Lawrence and Angela Tipton conspired to evade the payment of assessed taxes.  Their conduct involved failing to report income, creating various business entities to hide their income and assets from the Internal Revenue Service, according to the indictment.

Lawrence Tipton, Angela Tipton, and Ebony Brown conspired to use a trucking business known as Palmyra Acres as a means to mingle proceeds of drug trafficking with apparent legitimate proceeds of a trucking operation.  Lawrence Tipton and Ebony Brown conspired to distribute cocaine they acquired in Texas and Florida and sold in Ohio, according to the indictment.

All three defendants are charged with engaging in monetary transactions using proceeds of drug trafficking.

If convicted, a 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 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 investigation preceding the indictment was conducted by the Internal Revenue Service and the Drug Enforcement Administration.  The case is being prosecuted by Assistant United States Attorneys Robert E. Bulford and Samuel A. Yannucci.

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

Three people were indicted on five counts of health care fraud and one count of conspiracy to commit health care fraud in connection with the operation a Cleveland-based ambulette company, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Indicted are Nedal "Mark" Hasan 45, of North Olmsted, Kim  Gullie, 56, of Cleveland, and Nancy  Pyles, 68, of Roanoke, Texas. Together they operated Eman Transportation Services in Cleveland.

Ambulette services contract with the Ohio Medicaid program to transport patients in vehicles known as ambulettes.  An ambulette is a specially equipped van designed for wheelchair passengers.  Medicaid pays ambulette operators for driving Medicaid patients to and from Medicaid-covered appointments, so long as: (1) the patient rides in a wheelchair; (2) a medical doctor certifies the need for the wheelchair and ambulette; and (3) the ambulette itself otherwise meets safety specifications. 

The defendants are charged with scheming to defraud Medicaid of approximately $245,000 by charging Medicaid for rides of patients who did not use or need wheelchairs and for transporting Medicaid recipients to non-covered appointments.

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

The indictment is the result of an investigation by Ohio Attorney General Mike DeWine’s Medicaid Fraud Control Unit and the Office of the Inspector General, United States Department of Health and Human Services.  The case is being prosecuted by Assistant U.S. Attorney Michael L. Collyer and Special Assistant U.S. Attorney Maritsa Flaherty, an Assistant Attorney General for the State of Ohio.       

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

A grand jury returned a one-count indictment charging Scott Ray Moon, age 48, of Bartow, Florida, with failing to register as a sex offender in Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

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

The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the Cleveland office of the United States Marshals Service.

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

U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach will lead a delegation of 25 U.S. Attorneys from across the country to Selma, Ala., this weekend to commemorate the 50th anniversary of the "Bloody Sunday" march and discuss the state of civil rights in America.

"This weekend we will all remember that freedom is not cheap," Dettelbach said. "That the rights we cherish were paid for with the tears, the sweat and even the blood of brave men and women who came before us and fought for them in places like a bridge in Selma, Alabama.  As we continue the struggle to keep those rights, and extend them to every person in this country, it is important that we remember that we owe it both to our past and the future to never give up."

This weekend marks the 50th anniversary of "Bloody Sunday" and the Selma-to-Montgomery march in support of passage of the Voting Rights Act.

Dettelbach chairs the Attorney General's Advisory Committee's Civil Rights subcommittee. This weekend's events will include a speech from President Obama at the Edmund Pettus Bridge. Dettelbach will also be involved in discussions about police-community relations, marriage equality, voting rights, the Americans with Disabilities Act and enforcement of other civil rights.

Sixteen people were resentenced today for crimes arising out of a series of assaults on practitioners of the Amish religion announced Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio and Special Agent in Charge Stephen Anthony of the FBI Cleveland Office.

The defendants all reside in Bergholz, Ohio, unless otherwise noted.  Samuel Mullet, 69, received a prison sentence of 129 months.  Johnny S. Mullet, 41; Lester Mullet, 30, of Hammondsville, Ohio; Levi F. Miller, 56; and Eli M. Miller, 35, received 60 months.  Daniel S. Mullet, 40; Lester Miller, 40; and Emanuel Schrock, 46, received 43 months.  Raymond Miller, 30, of Irondale, Ohio; Linda Shrock, 47; Freeman Burkholder, 34, of Irondale; Anna Miller, 35; Elizabeth A. Miller, 40, of Irondale; Emma J. Miller, 40; Kathryn Miller, 25, of Irondale; and Lovina Miller, 35, all of whom had already completed previously-imposed prison sentences, received time served.

A jury found the defendants guilty in 2012 following a lengthy trial.  All of the defendants were found guilty of conspiracy to obstruct justice.  Eli Miller, Lester Mullet, and Levi Miller were also found guilty of concealing evidence.  Samuel Mulllet Sr., was convicted of concealing evidence and making false statements to federal investigators.  The convictions stem from five separate assaults that occurred in four Ohio counties between September and November 2011 and from the defendants’ efforts to conceal a camera and photographs that documented the assaults The photographs depicted some of the defendants in the act of assaulting one of the victims and depicted the injuries and humiliation of others.  The defendants intended to use the photographs to show other members of the community what they had done to the victims.

All of the defendants were also convicted of conspiracy to violate the Matthew Shepard-James Byrd Hate Crimes Prevention Act, which prohibits any person from willfully causing bodily injury to any person—or attempting to do so by use of a dangerous weapon—because of the actual or perceived religion of that person, as well as for obstruction of justice by witness tampering and the destruction or concealment of evidence.

The jury also convicted various groups of defendants with separate assaults.

The appeals court subsequently overturned the conspiracy to violate the Shepard-Byrd Hate Crimes Prevention Act, as well as the convictions for the separate assaults, citing an incorrect jury instruction. The other convictions were not affected by the appeals court decision.

Samuel Mullet Sr. was the Bishop of the Amish community in Bergholz, while the remaining defendants are all members of that community.  Mullet Sr. exerted control over the Bergholz community by taking the wives of other men into his home, and by overseeing various means of disciplining community members, including corporal punishment, according to trial testimony.

The assaults all entailed using scissors and battery-powered clippers to forcibly cut or shave the beard hair of the male victims and the head hair of the female victims.  During each assault, the defendants restrained and held down the victims.  During some of the assaults, the defendants injured individuals who attempted to intervene to protect or rescue the victims.  Following the attacks, some of the defendants participated in discussions about concealing photographs and other evidence of the assaults, according to evidence presented at trial.  At today’s hearing, the District Court judge found that the assaults were motivated by religion and the defendants’ obstruction was aimed at preventing law enforcement investigators from discovering the true nature the assaults.

“From day one, this case has been about the rule of law and defending the right of people to worship in peace,” said U.S. Attorney Dettelbach.  “This was never about ‘haircuts.’  These were violent, religiously motivated home invasions that left the victims bloody, bruised and beaten.  These defendants struck at two of our nation's bedrock principles – freedom of religion and the sanctity of the court system."

“The Justice Department will always fight to hold accountable those who commit religiously-motivated hate crimes,” said Acting Assistant Attorney General Gupta.  “We hope that the prosecution of those responsible for the assaults and the obstruction in this case will help bring closure to those affected by these intolerable crimes.”

This case was investigated by the Cleveland Division of the FBI and was prosecuted by Assistant U.S. Attorneys Thomas Getz and Bridget M. Brennan of the U.S. Attorney’s Office for the Northern District of Ohio and Deputy Chief Kristy Parker of the Civil Rights Division’s Criminal Section.  The prosecutor’s and sheriff’s offices from Holmes, Carroll, Jefferson and Trumbull counties also provided significant assistance in the investigation and prosecution of this case.

A Hudson woman was convicted of making false statements related to the purchase of three firearms, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Marcia M. Masters, 47, was convicted following a trial before U.S. District Judge Benita Pearson. She is scheduled to be sentenced June 16.

Masters acted as a straw purchaser of a firearm from Semi-Arms Inc. in Broadview Heights, Ohio.  She did this by lying on the Bureau of Alcohol, Tobacco, Firearms, and Explosives Form, falsely stating that she was the actual buyer and recipient of a Smith and Wesson Model 317 .22mm revolver, a Colt Model AR15 .223mm rifle and another Colt Model AR15 .223mm rifle.

She was employed as a police officer at the time of the purchases.

Assistant United States Attorneys Marisa Darden and Matthew Kall are prosecuting the case following an investigation by the ATF.

An Avon Lake man was convicted by a jury on 27 criminal counts for illegally receiving more than $10 million from the St. Paul Croatian Federal Credit Union, actions which played a role in the credit union’s collapse, law enforcement officials said.

Gezim Selgjekaj, 43, was convicted on one count of conspiracy, five counts of bank bribery, six counts of money laundering and 15 counts of financial institution fraud. He was acquitted on a single count of bank bribery following a trial before U.S. District Judge Christopher Boyko.

Selgjekai is scheduled to be sentenced May 26.

St. Paul Croatian Federal Credit Union (SPCFCU) was placed into conservatorship in April 2010, when it served 5,400 members and was believed to have assets of more than $238 million. The National Credit Union Association discontinued operation of SPCFCU when it was determined to be insolvent, making it the largest credit-union failure in American history.

Selgjekaj owned, operated and controlled, in whole or in part, several business entities, which were created either primarily as “safe havens” for credit union proceeds or that performed little or no legitimate business despite receiving loan proceeds intended for Selgjekaj’s “business” ventures, according to the indictment.

Those business included: Jimmy’s Trucking; Top Quality Produce; RGV Enterprises; Alba Logistics; GPA Transport; J&F Properties; Lake County Farmers Market; Albkos Properties LLC; G&M Truck Repairs; Produce, Inc.; Fresh Fruit; Fresh Start Co.; East Side Farmers Market; RGA Enterprises, LLC and Ristorante Luciano, according to the indictment.

From 2003 through April 2010, Selgjekaj conspired with Anthony Raguz, who at the times was chief operating officer at SPCFCU, and others, to defraud the credit union, according to the indictment.
Selgjekaj submitted false and fraudulent loan applications to Raguz, including submitting loan requests in nominee’s names when Selgjekaj’s aggregate loan balances reached a level that could have drawn attention from auditors or members of the credit union’s board, according to the indictment.

From March 2003 through July 2004, for example, Selgjekaj received approximately $5 million in fraudulent loan proceeds from SPCFCU. Selgjekaj received another $3.6 million between 2004 and 2008, despite the fact that Selgjekaj was in federal prison for unrelated conduct. Even after defaulting on the $8.6 million in loans, Selgjekaj received an additional $2.9 million in loans from SPCFCU between 2008 and 2010, according to the indictment.

To influence and reward Raquz for providing him with the fraudulently obtained money from SPCFCU, Selgjekaj gave Raguz $40,000 in cash and five checks totaling $66,000, according to the indictment.

Overall, Selgjekaj’s conduct resulted in a loss to the credit union of more than $10 million, according to the indictment.

To date, more than 20 people have been convicted of criminal activity related to the credit union. Raguz was sentenced to 14 years in prison and ordered to repay $72.5 million last year.

This case was prosecuted by Assistant United States Attorneys Bridget M. Brennan and Robert W. Kern following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.

Five people were indicted by a federal grand jury for conspiracy and passing counterfeit U.S. currency, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Indicted are: Eugene Allen, 55; Lisabeth Dayton, 33, of Canton; Joshua Moore, 24, of Hartville; Aaron Steed, 26, and David Wyatt, 44, of Akron.

The defendants executed a scheme whereby they would receive and pass counterfeit U.S. currency at businesses across Northern Ohio and elsewhere, purchasing goods and receiving genuine U.S. currency in exchange, according to the indictment.

The defendants received counterfeit $50 and $100 bills and passed them at stores in Mansfield, St. Clair Township, Canton and elsewhere, according to the indictment.

The United States Secret Service in Cleveland conducted the investigation.  The case is being prosecuted by Assistant United States Attorney Miranda E. Dugi.

If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the their roles 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.

Aa federal grand returned a two-count indictment charging Ricardo Garcia-Baltazar, aka Richard Molina, 37, of Youngstown, with representing himself as a U.S. citizen when he is not and with aggravated identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Count 1 of the indictment alleges that on or about January 17, 2013, Garcia-Baltazar, a citizen of Mexico and an alien in the United States, falsely represented himself to be a citizen of the United States.

Count 2 of the indictment alleges that between on or about January 17, 2013 and March 8, 2013, Garcia-Baltazar transferred, possessed and used, without lawful authority, identification of another person, knowing that the identification belonged to another person.

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

The investigation preceding the indictment was conducted by the Department of Homeland Security, U.S. Immigration and Customs Enforcement, Homeland Security Investigations.  The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.

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

A federal grand jury today returned an indictment in U.S. District Court charging Helen Love, 62, of Mansfield, Ohio, with theft of public money, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The alleged theft of Social Security funds, occurring between 2009 and 2013, totaled approximately $34,204.

The United States Social Security Administration Office of the Inspector General conducted the investigation.  The case is being prosecuted by Assistant United States Attorney Justin Seabury Gould.     

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.

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

A federal grand jury returned a four-count indictment charging Kyle A. Tesca, age 21, Caleb A. Lambert, age 21, and Kollin  J. Tesca, age 19, all of Mansfield, Ohio, with armed bank robbery and brandishing firearms during the bank robberies, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges in Count 1 that on December 15, Kyle A. Tesca, Caleb A. Lambert, and Kollin J. Tesca robbed the Richland Bank located at 460 West Cook Road, Mansfield, Ohio.   Count 3 alleges that on January 15, 2015, they robbed the Chase Bank located at 1094 Lexington Avenue, Mansfield, Ohio.

 The indictment further alleges in Counts 2 and 4 that Kyle A. Tesca and Caleb A. Lambert brandished firearms during each of the bank robberies.

If convicted, a 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 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 investigation preceding the indictment was conducted by the Federal Bureau of Investigation’s Mansfield Office.  The case is being prosecuted by Assistant United States Attorney Linda H. Barr.

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

A federal grand jury returned a one-count indictment charging Felicia D. Russell, 30, of Cleveland, with purchasing a firearm for a convicted felon, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Russell acted as a straw purchaser of a firearm from Atlantic Gun & Tackle in Bedford Heights, Ohio.  Russell accomplished her scheme by lying on the Bureau of Alcohol, Tobacco, Firearms, and Explosives Form, stating that she was the actual buyer and recipient of the firearm.

Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by ATF.

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

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

A Cleveland man previously convicted of rape and unlawful sexual conduct with a minor was indicted in federal court for possessing 18 firearms and ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Charles Imbrugia, age 45, possessed the ammunition and firearms on Dec. 22, 2015. The firearms included a River Arms 7.62-caliber rifle, a Molot Oruzhie 7.62-caliber rifle, a Norinco 7.62-caliber rifle, multiple 12-gauge shotguns, a Remington .22-caliber rifle, an Israel Weapon Industries .50-caliber pistol and several other firearms, according to the indictment.

"This defendant had an arsenal," Dettelbach said. "Our office places a high priority on keeping firearms out of the hands of those who are forbidden by law from obtaining them."

Imbrugia was previously convicted in Cuyahoga County Common Pleas Court of three counts of rape and two counts of unlawful sexual conduct with a minor. As a convicted felon, he is forbidden by law from possessing firearms or ammunition.

If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, 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 investigation preceding the indictment was conducted by the Ohio Adult Parole Authority.  The case is being prosecuted by Assistant United States Attorney Kelly Galvin.

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.