Northern District of Ohio

A Marion man was ordered to pay restitution and a fine and was sentenced to a term of probation following his conviction on a charge of making and causing a false statement on an annual statement regarding a company 401k plan, said Steven M. Dettelbach, United States Attorney.

John Richard Blazer, 68, was sentenced by Senior U.S. District Judge James G. Carr, who also imposed a $2,800 fine.

Blazer was charged in 2013 with several felony violations. His conduct involved a company named Neo-Wood Manufacturing, Inc., located in Alvada, Ohio.  Neo-Wood, which was owned by John E. Werner III, maintained a 401k profit-sharing plan for its employees.  Werner was also the sole trustee of the 401k plan.  The Neo-Wood plan was subject to the Employee Retirement Income Security Act (ERISA), and under that Act, Neo-Wood was required to submit an annual financial  report (Form 5500), which required among other items a report of assets held by the plan, and a disclosure of prohibited transactions with parties-in-interest to the plan, according to court documents.

On or about January 28, 2008, Blazer induced Werner to remove $28,000 from the Neo-Wood plan, and send that money to Blazer.  Shortly thereafter, Blazer returned to Werner personally $25,200, or 90 percent of the money removed, and Blazer kept $2,800.  This transaction was done by Werner and Blazer without the knowledge or authorization of the Neo-Wood employees, and the withdrawal left virtually no funds in the plan, according to court documents.

On or about April 30, 2009, an annual Form 5500 was submitted to the U.S. Department of Labor by Werner at Neo-Wood.  The Form 5500 falsely reported that the $28,000 removed by Werner and Blazer remained in the plan as an asset.  The Form 5500 also falsely omitted the commission of a prohibited transaction with the transfer through Blazer to Werner personally, according to court documents.

Prior to the taking of the $28,000, there had been three prior transfers totaling $140,000 in funds removed from the Neo-Wood 401k plan and given to Blazer.  As a result of this investigation and prosecution, prior to Blazer’s guilty plea, $221,649 in restitution was paid by Blazer to the custodian of the Neo-Wood plan.  This restitution payment, which included interest, resulted in restoring almost all of the improperly-removed funds to the Neo-Wood employee 401k accounts.

This case was investigated by the Employee Benefits Security Administration of the U.S. Department of Labor.  The case was prosecuted by Assistant U.S. Attorneys Thomas Karol and James V. Moroney.          

A federal grand jury returned a one-count indictment charging Antwan M. Grissett, 44, of Youngstown, with possession and attempted possession with intent to distribute cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that on or about October 2, 2014, Grissett possessed and attempted to possess with the intent to distribute more than 500 grams of cocaine.

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 United States Postal Inspection Service and the Drug Enforcement Administration.   The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.

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

A federal grand jury returned a two-count indictment charging George Rafidi, 60, of Warren, with assault on a federal officer and with possession of a firearm in connection with a violent felony, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that on or about October 8, 2014, Rafidi forcibly assaulted, resisted, impeded and interfered with federal law enforcement officers, who were engaged in their official duties, and brandished a firearm during the assault.

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 United States Department of Agriculture, Office of Inspector General, the United States Marshals Service, Homeland Security Investigations and the Lordstown Police Department.   The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.

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

A Peruvian man was sentenced to more than 17 years in prison for sexually exploiting a child, 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.

Edwin Franco Rolffo-Zavala, 24, of Novato, California, was found guilty earlier this year of sexual exploitation of a child, transporting visual depictions of minors engaged in sexually explicit conduct and travel with intent to engage in illicit sexual conduct.

Rolff0-Zavala is a Peruvian national who will face deportation upon completion of his prison sentence.

From on or about May 13, 2013, through on or about January 13, 2014, Rolffo-Zavala, 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 transmitting a live visual depiction of such conduct, and knowing and having reason to know that such visual depiction would be transmitted, 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 January 1, 2011, through on or about January 13, 2014, Rolffo-Zavala 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 real minors engaged in sexually explicit conduct, according to court documents.

On or about January 16, 2014, Rolffo-Zavala knowingly traveled in interstate commerce, from the State of California to the State of Ohio, for the purpose of engaging in illicit sexual conduct with a 14-year-old girl, according to court documents.

This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Akron Office of the Federal Bureau of Investigation and the Medina City Police Department.

A six-count indictment was filed in federal court charging a pair from Northeast Ohio of engaging in a $2.1 million mortgage-fraud scheme involving a Westlake home, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Derryl L. Tanner, 47, of Euclid, and Julie A. Becker, 39, of Cleveland, engaged in a conspiracy in 2006 to defraud several lending institutions related to transactions involving a home at 1517 Fitzroy Street.

Tanner learned that the builder of the home on Fitzroy was experiencing financial difficulties and was willing to sell the home for the cost of construction. Tanner enlisted Becker to serve as a straw buyer. He told her that if she allowed the property to be purchased in her name, she would not have to put any money down and would receive cash back at the time of closing for allowing her name to be used, according to the indictment.

Becker signed promissory notes that she had no intention of repaying. Funds were temporarily transferred into an account in her name so she could qualify for a mortgage, a home equity line and make a down payment. She also, with Tanner’s knowledge, provided false income tax returns for the same purposes, according to the indictment.

When Ohio Savings approved a $250,000 home equity line of credit application on the Fitzroy property, Tanner and Becker quickly spent the money, including transferring large sums of money into their personal bank accounts, according to the indictment.

Tanner moved into the Fitzroy property but was not able to make the monthly mortgage payment. The property went into foreclosure, resulting in losses of approximately $670,000 to First Place, $250,000 to Ohio Savings/Amtrust and $350,000 to National City/PNC, according to the indictment.

This case is being prosecuted by Assistant U.S. Attorney Mark S. Bennett following an investigation by the U.S. Postal Service Office of Inspector General and Westlake Police Department.

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

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

A seven-count indictment was filed today accusing a former Copley resident of stealing more than $1.5 million from healthcare plans he administered and using the money to pay for bonuses, operating expenses, luxury car leases and a country club membership, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Robert Hartenstein, 61, was indicted of seven counts of theft from a health benefit program.

“This defendant was entrusted with millions of dollars to pay for hospital stays and medical tests, but instead betrayed that trust and used his clients’ money for fancy cars, lavish entertainment and his own business operations,” Dettelbach said.

Hartenstein in 1994 started Professional Benefits Association (PBA), a company that was a third-party administrator of healthcare plan benefits. It was located in Cuyahoga Falls and had a branch office in Austintown. Hartenstein was the majority owner, chief executive officer and chairman and secretary of its board of directors.

PBA had several clients that were companies which sponsored self-funded health care benefit plans for their employees. These companies hired PBA and paid it a fee to administer their benefit plans. Hartenstein knew PBA was required by law and by contract to establish individual segregated bank accounts for each of the client companies to hold, in trust, the funds the companies sent to PBA to pay claims from medical service providers, according to the indictment.

From at least 2000 through 2010, Hartenstein caused, authorized and directed expenditures from PBA’s operating account. Such expenditures included salaries and periodic bonuses to Hartenstein and PBA employees, payments to lease luxury cars and a country club membership Hartenstein used and an entertainment account Hartenstein used, according to the indictment.

A PBA employee identified in the indictment only as L.W. began regularly depositing plan funds from the companies into the PBA operating account instead of depositing those funds into the companies’ respective segregated trust accounts, as required by law and PBA’s contracts with the companies. This improper comingling of funds was done with Hartenstein’s knowledge, according to the indictment.

Hartenstein learned in 2008 or earlier that PBA did not have sufficient funds to pay the medical service provide claims for which the companies had already provided funds in trust to PBA. When he learned of the shortfalls, Hartenstein directed PBA employees to withhold payments from service providers for increasing periods of time. Employees made up excuses for the delays at Hartenstein’s direction, according to the indictment.

Hartenstein did not inform the companies of the shortfalls. Instead, he directed PBA employees to divert funds to pay for other outstanding claims. He misled PBA clients about the status of payments and why claims had not been paid. At Hartenstein’s direction, PBA employees made up false excuses for lack of payment to companies or falsely claimed payment had been made, according to the indictment.

According to the indictment, the health benefit plans that Hartenstein defrauded were for the following organizations: Guyan International, Inc. dba the Permco ($501,380); Pritchard Mining Company, Inc. ($435,837); Hocking Athens Perry Community Action ($384,574); O’Bleness Memorial Hospital ($91,877); Precision Gear ($54,612); Lordstown Schools ($32,835) and the Joseph Badger Local Schools ($29,357).

This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by U.S. Department of Labor, Office of Inspector General and Employee Benefits Security Administration.

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

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

A North Royalton man was indicted today for operating a loan-modification scheme in which he defrauded more than 90 homeowners struggling to make their mortgage payments out of at least $250,000, 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.

Robert Walker, age 43, was indicted on 21 counts of mail fraud and two counts of wire fraud.

Walker is accused of making multiple false representations. He convinced homeowners on the verge of foreclosure to pay himself and his company an up-front fee of at least $1,995 but then did little or no work to get a loan modification for customers, according to the indictment.

The indictment alleges that Walker promised customers that, if not modification was obtained, 80 percnet of the fee would be reimbursed. But Walker never intended to reimburse those fees and when he failed to obtain a loan modification, he regularly refused the promised reimbursement.

“This defendant preyed upon people struggling to pay the bills and instead of helping them, he ripped them off,” Dettelbach said.

“While these people were facing hard times with the very real possibility of losing their homes, this predator took full advantage of their vulnerable position and lined his pockets with money,” Anthony said.

According to the indictment filed in federal court:

Walker incorporated and owned The Modification Group, or TMG, where he supervised and directed the employees. TMG did business under various names, including The Modification Group 4, US Modification Group and Loan Modification Group, among others. It had offices at various times in Broadview Heights, Middleburg Heights, Bedford, Parma Heights, Ravenna and Cleveland.

TMG solicited people who were struggling to pay their home mortgages or that were pending foreclosure and offered to help improve their financial situation and avoid foreclosure by interceding on their behalf with the lending institution and obtaining a loan modification. TMG advertised itself – using direct mailings, telephone calls, a website and internet and radio advertisements – as “specializ(ing) in loan modifications, debt settlements, credit repair, and financial planning services” and having “experienced negotiators that will secure your home with the lowest fixed rate available.” TMG claimed it “will eliminate or reposition all late payments back into your loan, bringing the account current, while also lowering your interest rate or payment, making it easier for you to afford.”

From 2009 through 2011, Walker devised a scheme to defraud by making representations that he knew TMG could not keep and had no intention of keeping, including: “”Are You In A Loan You Can’t Afford? We Will Modify It. Guaranteed.” Or “What [TMG] Can Do To Help: Lower interest rates (2-5.5% fixed) giving you a reduction in monthly payments; eliminate or shorten 2nd Lien, and/or lowering overall principle balance; Position yourself out of an interested only or adjustable rate mortgage and into a fixed 30 or 40 year payment.”

Walker, through TMG, required consumers to pay $1,995 or 1 percent of the mortgage balance, whichever was greater, up front, before TMG worked on obtaining a loan modification.

Walker directed his employees at TMG to solicit and accept clients for whom he knew TMG would not be able to obtain loan modifications on terms that that customers could realistically afford. Through TMG, he required customers to enter into written service agreements that were substantially one-sided, in favor of TMG. He also directed employees to tell potential customers that TMG would refund 80 percent of the fee paid if TMG failed to obtain a loan modification, when Walker had no intention of refunding the fee.
Walker, through TMG, prohibited customers from contacting their lending institution and directed customers to send any and all correspondence from their lenders to TMG.

TMG often failed to obtain any loan modification for the customer. In some cases, TMG never contacted its customer’s lending institution to discuss a modification even though the customer had paid substantial monies to Walker and TMG to do so.

Walker and his employees at TMG often created illegitimate reasons that they claimed voided TMG’s contract to avoid refunding customer’s fees. For example, TMG often told customers that they had not provided requested documents quickly enough, and terminated their contracts without a refund.
Walker, through TMG, told customers who attempted to cancel their contracts that doing so was a breach that voided their right to a refund. He often refused to issue a refund for customers for whom TMG had failed to obtain a loan modification unless the customer filed a complaint with a consumer protection agency.

Defrauded customers include residents in Lakewood, Cleveland, Eastlake, Streetsboro and North Ridgeville, as well as North Carolina, Virginia, Connecticut, Indiana and elsewhere, according to the indictment.

This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Federal Bureau of Investigation and the Ohio Attorney General’s Office, Consumer Protection Section.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.

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

A federal grand jury returned a one-count indictment charging Jeimil A. Henderson, age 22, of Medina, with possession with the intent to distribute and distribution of crack cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Henderson was arrested by members of the Medina County Drug Task Force and Drug Enforcement Administration on a criminal complaint after an investigation.

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 Medina County Drug Task Force, Medina Police Department and the Drug Enforcement Administration.  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.

Robert Noel, 54, of Lorain, was charged with receiving and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges that from on or about August 16, 2014, through on or about September 17, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Noel knowingly received, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce.

The indictment also charges that on September 25, 2014, Noel possessed an external computer hard drive 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 Elyria Office of the Federal Bureau of Investigation.

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

Scott Eric Sherwood, 54, of Lorain, was charged with transporting and possessing visual depictions of minors engaged in sexually explicit conduct, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges that from on or about October 1, 2012, through on or about November 1, 2013, in the Northern District of Ohio, Eastern Division, and elsewhere, Sherwood knowingly transported, using any means and facility 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.

The indictment also charges that on September 25, 2014, Sherwood possessed an external computer hard drive 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 Elyria Office of the Federal Bureau of Investigation.

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

A federal indictment was filed today charging an individual with being found in the United States without permission after previously being deported, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Vicente Sica-Ixcoy, 32, a citizen of Guatemala, is named in the indictment. The indictment charges one count of being found inside the United States in the Northern District of Ohio without the express permission of the Attorney General of the United States or the Secretary for Homeland Security.

The indictment alleges that on or about September 18, 2014, the defendant was found in Dover, Ohio, having previously been deported on at least one occasion from the United States, subsequent to a conviction for the commission of an aggravated felony, namely unlawful sexual contact with a minor, in the Common Pleas Court of Tuscarawas County, Ohio.

The case is being prosecuted by Assistant United States Attorney Marisa T. Darden, following an investigation by the Department of Immigration and Customs Enforcement. 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 23-count indictment was filed charging a Virginia executive with providing things of value to the former director of the Cleveland and Dayton Veterans Affairs Medical Center in exchange for confidential information about VA construction projects, law enforcement officials said.

Mark S. Farmer, 54, of Arlington, Virginia was charged with one count of conspiracy to commit mail fraud, wire fraud and theft of government property; two counts of wire fraud; six counts of embezzlement and theft; one count of violating the Hobbs Act and 13 counts of mail fraud.

Farmer was employed at an integrated design firm that performed work for the VA. He worked in several different capacities, including associate principal. The business is identified in the indictment only as “Business 75”.

Farmer and Business 75 received VA records and things of value, including non-public information concerning the VA and streamlined access to public information concerning the VA, which William Montague had embezzled and stolen without authority from the VA. This was done to give Farmer and Business 75 an advantage over other companies in the awarding and administration of VA business.

Montague, the former director of the Cleveland and Dayton Veterans Affairs Medical Center, pleaded guilty earlier this year to 64 counts related to his role in the conspiracy. He is awaiting sentencing.

“Bribing a public official to obtain internal government documents and information for a competitive business advantage is illegal,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The FBI will continue to root out corruption at all levels.”

“Contractors and employees conspiring to defraud the VA is particularly intolerable as the VA struggles to effectively serve our nation's veterans,” said Gavin McClaren, U.S. VA OIG, Resident Agent in Charge, Cleveland.

Farmer asked Montague to obtain information concerning VA contracts and business, including VA records. Montague used his power and influence at the VA to gain access to VA employees in ways that Farmer and Business 75 could not. Montague gave false and misleading information to VA employees about Montague’s reasons for requesting VA records and information, according to the indictment.

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

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

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

An Akron physician pleaded guilty to illegally prescribing hundreds of thousands of doses of painkillers and other pills to customers for no legitimate medical purpose, even after he learned some customers had died from overdose-related deaths, law enforcement officials said.

Adolph Harper, Jr., 64, pleaded guilty to one count of conspiracy to traffic drugs, four counts of health care fraud and 16 counts of drug trafficking. He is scheduled to be sentenced Jan. 27.

Also today, Patricia Laughman, 52, of Barberton, Ohio, pleaded guilty to one count of conspiracy to traffic drugs and 14 counts of drug trafficking, while Adria Harper, 35, of Akron, pleaded guilty to one count of conspiracy to traffic drugs and 25 counts of drug trafficking.

Tequilla Berry, 35, of Akron, pleaded guilty earlier this year to one count of conspiracy to traffic drugs and seven counts of drug trafficking.

Together, they distributed hundreds of thousands of doses of prescription medications—including Oxycontin, Percocet, Roxicet, Opana, and others—from Adolph Harper’s medical officers in Akron between 2009 and 2012, according to court documents.

“Doctor Harper is simply a drug dealer who happened to wear a white coat and worked from a medical office instead of a street corner,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “His actions destroyed lives and families.”

Steven D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, said: “Just because you have a prescription pad does not give you a license to deal drugs. Not only did this doctor violate the physician’s oath but he also allowed others in his office to abuse his medical privileges.”

All four defendants conspired to distribute addictive controlled substances, including prescription painkillers and anti-anxiety medication, outside the usual course of professional practice and without any legitimate medical purpose, according to court documents.

Adolph Harper’s customers, many of whom were drug addicts exhibiting clear signs of drug addiction during their visits to his office, came to his office and received “prescriptions” for addictive prescription medications without being examined by Harper and often without seeing him at all, according to the court documents.

Harper continued to distribute prescriptions for controlled substances after he learned that some of his customers had died from overdose-related deaths, according to the court documents.

Adria Harper, Laughman and Berry distributed prescriptions to these customers when Adolph Harper was out of the office and also used Adolph Harper’s prescription pad to distribute prescriptions for addictive painkillers to themselves, according to the court documents.

Additionally, Adolph Harper executed four separate schemes to defraud health insurance providers by (1) submitting insurance claims for services using a higher billing code than the service justified; (2) submitting insurance claims for unperformed services; (3) billing an insurance provider for a service after collecting a cash payment for the same service; and (4) causing the submission of insurance claims for prescriptions for controlled substances that were issued outside the usual course of professional practice and not for a legitimate medical purpose, according to court documents.

This case is being prosecuted by Assistant United States Attorneys Margaret A. Sweeney, Edward F. Feran, and Rebecca C. Lutzko following an investigation by the Federal Bureau of Investigation, the Department of Health and Human Services -- Office of the Inspector General, the Drug Enforcement Administration, the Ohio Board of Pharmacy and the Akron Police Department.

A 47-count indictment was filed in federal court charging 23 people for their roles in a conspiracy that brought and sold cocaine and crack cocaine to Canton, law enforcement officials announced.

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 FBI’s Cleveland Office and Canton Police Chief Bruce Lawver.

"This group brought pounds and pounds of cocaine into Stark County,” Dettelbach said. “Only through the good work of the FBI, the Canton police and all our partners was the pipeline shut down.”

“These individuals brought danger and illicit drugs to the streets of Canton and the surrounding territory,” Anthony said. “The FBI will continue collaborative law enforcement efforts to rid our streets of such poison and make our communities a safer place to live.”

“These cases make a significant impact on the community through the arrest and prosecution of those responsible for the violence on our streets,” Lawver said. “By focusing on the gang members, drug traffickers and those who are responsible for the violence, we are able to form better relationships with our community as a whole.”

All those indicted are from Canton unless otherwise noted. Indicted are: James E. Walton, 39; Mario Munoz-Gonzales, 27, of Grove City; Eduardo Arredondo, 26; Jose Magueyal, 39; Raymond Jackson, 34; Marcus Houston, 39; Dardisi Alexander, 26; Darcell Anthony, 45; Dontez Lewis, 33; Abraham Joaquin, age unknown; Jack Pearson, 41; Brian Pinkney, 31; Dwight Martin, 55; Dante Harvey, 35; William Nicholson, 32; Terrance Wharton, 34, of Barberton; John Coburn, 27; Richard Taylor, 32; Clifford Cantwell III, 35; Justin Sybole, 26; Richard Crawford, 31, of Louisville, Ohio; Gregory Archer, 50, and Allen Woodson, 26.

The indictment details a two-year conspiracy in which Magueyal obtained kilogram-quantities of cocaine from Arredondo and Munoz-Gonzales. Magueyal, in turn, provided cocaine to Walton, Jackson, Houston, Alexander, Nicholson, Wharton, Joaquin, Taylor, Cantwell, Sybole, Woodson and others for distribution, according to the indictment.

Walton then provided cocaine and crack cocaine to Anthony, Lewis, Pearson, Harvey, Coburn, Pinkney, Martin, Archer, Crawford and others for distribution, according to the indictment.

Walton used stash houses and a storage locker to store drugs, drug proceeds and drug packaging materials, according to the indictment.

Prosecutors are seeking to forfeit several things used as part of or as a result of the criminal conspiracy, including three Canton homes, at 2914 Fairmount Blvd. NE (titled to Magueyal); 4707 Cleveland Ave. SW (titled to Cantwell) and 514 Webster Ave. NE (titled to Pinkney); four firearms, more than $85,000 in cash and four vehicles – a 1975 Oldsmobile Delta 88 Royale, a 2006 BMW 740i, a 2008 GMC Acadia and a 2007 Chevrolet Silverado Crew Cab LS, according to the indictment.

This indictment is the result of an investigation by the Stark County Safe Streets Task Force, which includes members of the Federal Bureau of Investigation, the Canton Police Department, the Jackson Township Police Department, the Alliance Police Department and the Ohio Adult Parole Authority, with assistance from the Ohio State Highway Patrol and the Stark County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Teresa Riley and Henry F. DeBaggis.

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

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

A federal Grand Jury returned a one-count indictment charging Beverly Boyd, 57, a resident of Struthers, Ohio, with theft of government funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Boyd, the Rrpresentative payee for her father, stole government funds from the date of her father’s death on November 25, 2007, until August 2013.  Boyd accomplished this scheme by concealing her father’s death and then converting her father’s Social Security benefits for her own use in violation of her responsibilities as a Representative Payee and federal law.

Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the SSA Office of Inspector General.

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

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

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a one-count indictment charging Joyce L. Humes, age 62, of Dennison, Ohio, with one count of theft of government funds.

The indictment alleges that from on or about December 1, 2009, through October 31, 2013, Joyce L. Humes stole Social Security survivor benefits in the amount of $50,618 from the United States Social Security Administration to which she was not entitled.

 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 agents of the Office of Inspector General of the United States Social Security Administration.

 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.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a one-count indictment charging Fidel Gaytan-Santillan a.k.a. Fidel Gayton-Santillan, age 34, of Mexico, with unlawful reentry into the United States on September 26, 2014.

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 agents of the Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations.

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

A former employee was charged with mail fraud for a 16-year scheme to defraud J.M. Smucker Company, of Orville, Ohio, of more than $4.1 million, 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. 

Mark R. Kershey, age 54, of Akron and formerly of Massillon, was employed as Smucker’s chief airplane mechanic at the Akron-Canton airport when, from approximately October 1997 through January 2013, he devised a false billing scheme using a fictitious entity he controlled, under the name of Aircraft Parts Services, Co., according to the one-count criminal information filed in federal court.

Kershey submitted false invoices to Smucker in the name of Aircraft Parts Services, which in all or nearly all instances were for nonexistent parts and/or for purported outside services that he actually performed as part of his salaried employment duties. Kershey submitted most invoices in amounts less than $10,000, which he was authorized to approve. A supervisor approved a few larger invoices based on his trust in Kershey, according to the information.

Kershey maintained a P.O. Box under the fake company name in Greentown, Ohio, to receive checks mailed by Smucker in reliance on the fraudulent invoices.  Kershey used the proceeds of his scheme for personal uses, including the purchase and maintenance of two airplanes, the purchase of several automobiles, and payments for his personal residence, according to the information.

The information describes Kershey’s efforts in late 2012 to deceive Smucker with respect to the final three checks payable to Aircraft Parts Services totaling $44,000, which Kershey had failed to negotiate. Kershey told the employee that Aircraft Parts Services had been sold to another Smucker vendor (referred to in the information as SAI), and submitted a letter to Smucker purportedly from SAI’s owner, that Kershey fabricated and forged, falsely confirming the purported sale to SAI.  Smucker then issued replacement checks to SAI, that SAI deposited after discussion between Kershey and SAI’s owner.

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.

In addition, the information seeks forfeiture from Kershey of his two airplanes, three automobiles, and a truck, which are alleged to be proceeds traceable to his mail fraud scheme.

The case is being handled by Special Assistant United States Attorney John M. Siegel following investigation by the Federal Bureau of Investigation, Canton, Ohio.

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.

Attorney General Eric Holder presented Assistant U.S. Attorneys Bridget M. Brennan and Ava M. Rotell Dustin the John Marshall Award for Participation in Litigation today at a ceremony in Washington, D.C., honoring them for successfully prosecuting the arson at the Islamic Center of Greater Toledo last year.

The annual Attorney General Awards recognize department employees and other individuals for their dedication to carrying out the Department of Justice’s mission.  

“With this important event, we come together to honor some of our nation’s most distinguished, dedicated, and deserving public servants,” said Attorney General Holder.  “The hard work and impressive achievements of these 278 award recipients have inspired their colleagues at every level of the U.S. Department of Justice – including me.  Their leadership has been indispensable in defining the past year as one of historic accomplishment in the face of nearly unprecedented challenge.”

“The hard work of these talented prosecutors and agents deserves national recognition, both because of their success but even more because of what they were fighting for,” said U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach. “Religious freedom is at the core of our community and nation, and those who would commit acts of violence based on a how someone prays also do violence to our American ideals.”

The John Marshall Award for Participation in Litigation is presented for superior performance in the litigation and prosecution of Randolph Linn, the Islamic Center of Greater Toledo arsonist.  Award recipients include, from the U.S. Attorney’s Office for the Northern District of Ohio, Assistant U.S. Attorneys Bridget M. Brennan and Ava M. Rotell Dustin.

On Sept. 30, 2012, Linn, armed with gas cans and a handgun, set fire to the Islamic Center of Greater Toledo, the largest mosque in northwest Ohio.  This horrific act resulted in more than $1.4 million in damage, displaced the congregation and a full-time elementary school for over a year, and caused a wave of fear to spread throughout the Muslim community in the region.  Less than three months after the fire was set, the recipients skillfully negotiated a binding plea agreement resulting in Linn pleading guilty to damage to religious property, use of a fire to commit a felony and use of a firearm to commit a crime of violence.  On April 16, 2013, Linn was sentenced to serve 20 years in prison for these hate crimes.

A Columbia Station man was sentenced to 20 years in prison for production of child pornography, child exploitation, extortion, identity theft and related crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland office.

William T. Koch, age 25, previously pleaded guilty to 18 counts, including sexual exploitation of children, extortion, identity theft, receipt and distribution of minors engaged in sexually explicit conduct and unauthorized distribution of live musical performance.

Koch attempted to coerce more than a dozen minors to engage in sexually explicit conduct between 2010 and 2013 for the purpose of producing visual depictions of such conduct; knowing and having reason to know that such visual depictions would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce, according to court documents.

Koch used, persuaded, induced, enticed, and coerced a minor to engage in sexually explicit conduct for the purpose of transmitting a live visual depiction of such conduct, knowing and having reason to know that such visual depiction would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce, according to court documents.

Koch attempted to coerce a minor to engage in sexually explicit conduct with his 10-year-old brother, for the purpose of transmitting a live visual depiction of such conduct, knowing and having reason to know that such visual depiction would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce, according to court documents.

Koch distributed, in and affecting interstate and foreign commerce, by computer, any material in a manner that reflected the belief and was intended to cause another to believe that the material was a visual depiction of an actual minor engaging in sexually explicit conduct, according to court documents.

Koch, with the intent to extort a thing of value from some of the aforementioned minors, transmitted in interstate and foreign commerce, communications threatening to injure the reputations of said minors. He knowingly used, without lawful authority, in and affecting interstate and foreign commerce, a means of identification of another person, with the intent to commit, and in connection with, the offenses charged in the indictment.

This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan.

The case was investigated by the Federal Bureau of Investigation and the Department of Homeland Security, Homeland Security Investigations.

Sixty people were indicted and 110 firearms were seized as part of a months-long enhanced enforcement initiative targeting the criminal possession, use and sale of firearms in Greater Cleveland, law enforcement officials announced.

The indictments were announced by ATF Director B. Todd Jones, U.S. Attorney Steven M. Dettelbach, Cleveland Mayor Frank G. Jackson, ATF Special Agent in Charge Michael Boxler, Cleveland Police Chief Calvin Williams and Cuyahoga County Prosecutor Timothy J. McGinty.

Forty-two people were indicted in federal court while 18 people were indicted in state court. Charges include engaging in the business of dealing firearms without a license, being a felon in possession of firearms and ammunition, possession of unregistered firearms that had been modified (sawed-off shotguns), possession and sale of firearms with obliterated serial numbers and related drug counts.

The indictments are the result of “Operation Samson II,” a summer-long initiative organized around three operational groups.  The first used undercover operations to investigate people known to criminally possess, use and sell firearms, as well as people possessing firearms while conducting drug activities. The second group, referred to as the “Follow the Gun Group,” used firearms trace data and ballistics information from the National Ballistics Information Network (NIBIN) to pursue leads related to firearms that have been diverted from legal commerce to criminal use. Many of those investigations remain ongoing. The third group involved ATF Industry Operations conducting inspections at Cleveland-area federal firearms licensees to ensure that dealers are selling firearms in accordance with federal law and regulations.

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.

“Preventing violent crime and apprehending violent offenders are vital components of ATF’s commitment to public safety because firearms-related violence should not be considered part of everyday life.  This collective operation is helping make that possible for the citizens of Cleveland,” Director Jones said.

 “Gun crime is far too prevalent in our community, and the Department of Justice is working with the City to not just talk about that problem, but to do something about it,” U.S. Attorney Dettelbach said. “This summer, our office and the ATF have doubled down on that commitment here, by targeting some of Cleveland's most violent felons and working with our local partners to take them, and some of their considerable weaponry, off our streets. We need an all-of-the-above approach to fighting gun violence, and today's announcement reminds us that targeted enforcement remains and important part of that approach.”

“Gun violence in Cleveland is often the result of guns in the hands of felons who do not have the right to have a gun. I’d like to thank the Bureau of Alcohol, Tobacco, Firearms and Explosives for working with our Cleveland police this year to take a significant number of these illegal firearms off our streets,” said Mayor Jackson.

“These arrests will destabilize the market in the illegal gun trade,” Prosecutor McGinty said. “These weapons are constantly found to be used by those who deal in illegal drugs and commit other violent offenses. This program is a step toward a safer community.”

Below are details of selected cases:

United States v. Kali Alexander et. al.: An 11-count indictment was filed charging five people with using firearms as part of a drug conspiracy, conspiracy to distribute cocaine and felons in possession of firearms.

Alexander, 24, of Willoughby Hills, recruited Rasheam Nichols, 24, Justin Maxwell, 26, Terrance Chappell, 22, and Kenneth Flowers, 21, all of Cleveland, to steal up to nine kilograms of cocaine from a stash house in Cleveland. The group planned to rob the stash house, then Alexander would sell the stolen cocaine and split the profits, according to the indictment.

Alexander met with an undercover ATF agent in August and expressed an interest and willingness to commit the robbery. “I promise you, I know what I’m doing, I’m about to holler at my big brother, then we going to orchestrate it from there.” On September 3, Alexander, Nichols, Maxwell, Chappell and Flowers met with the ATF undercover and discussed the strategy for the robbery. Then the five men drove to agreed-upon location in anticipation of acquiring a specific vehicle to use during the robbery, at which point they were arrested, according to the indictment.

United States v. Juan Davis: Davis, 25, of Cleveland, was not a licensed firearms dealer but sold five firearms on three dates in August – a Ruger .40-caliber pistol, an HS 9mm pistol, a Chinese SKS 7.62-caliber rifle, a Firearms International .22-caliber pistol and a Bersa .45-caliber pistol, according to the indictment.

United States v. Jesse Pawlak: Pawlak, 32, of Parma, has prior convictions for drug trafficking and burglary, but in July possessed an AK-47 7.62-caliber rifle, a Sar Arms 9mm pistol and a Bersa .380-caliber pistol, and in August possessed a Professional Ordnance 5.56-caliber rifle, according to the indictment.

United States v. Moises Perez: Perez, 45, of Cleveland, had a Ruger 9 mm pistol and H&R .22-caliber revolver and assorted ammunition in August, despite prior 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. Perez was indicted as an armed career criminal, which would carry a mandatory minimum sentence of 15 years in prison if convicted, according to the indictment.

United States v. James Smith et. al.: A seven-count indictment was filed charging James Smith, 25, of Cleveland, Brandon Talley, 32, of Garfield Heights, and Lorenzo White, 22, of Cleveland, with multiple offenses. Talley possessed a 12-gauge shotgun in August, despite a previous conviction for rape and aggravated robbery with firearms specifications.  Talley, Smith and White aided and abetted each other in the possession of unlicensed shotguns which had been modified (sawed-off), according to the indictment.

United States v. Gilberto Torres, et. al: A six-count indictment was filed charging Gilberto Torres, 33, Juan Hernandez, 23, both of Cleveland, and Antonio Turner, 33, of Shaker Heights, with firearms offenses. All three men at various times sold firearms without a license. Torres and Turner did so despite felony convictions – aggravated assault for Torres and attempted felonious assault, burglary, abduction and robbery with a firearm for Turner. Hernandez also sold a HiPoint .40-caliber pistol with an obliterated serial number, according to the indictment.

State of Ohio v. Michael Lukach: Lukach, 24, of Cleveland, was charged in state court with two counts of carrying a concealed weapon, fourth-degree felonies; two counts of improperly handling firearms in a motor vehicle, also fourth-degree felonies; and unlawful possession of dangerous ordnance, a fifth-degree felony. These charges stem from undercover investigations in which Lukach, also known as “Russian Mike,” sold eight firearms to an agent – six semiautomatic pistols and two shotguns, according to the indictment.

The federal cases were presented for indictment by Assistant U.S. Attorney Kelly Galvin.

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

The former police chief of Kirtland Hills was charged with 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.

A two-count criminal information was filed in federal court charging Gerald Smith, Jr., 57, of Kirtland, with one count of mail fraud and one count of destruction, alteration or falsification of records in a federal investigation.

“This defendant stole from the people he swore to serve,” Dettelbach said. “He used the public coffers to furnish his condo and pay for his meals. There will be consequences for public officials who violate the public’s trust.”

“To serve others and pursue justice is the oath all law enforcement promise to abide by,” Anthony said. “Unfortunately, this chief's self-interest and greed overrode his ethical conscious and his commitment to serve his community.”

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 the information.

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 the information.

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 the information.

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 the information.

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 the information.

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 the information.

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 the information.

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

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

A federal grand jury returned a five-count indictment charging Jemel E. Thompson, 25, of Ashtabula, with firearms and drug violations and Maranda M. Rabenold, 31, of Madison, with firearms violations, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Count 1 of the indictment alleges that on or about August 8, 2014, Thompson was in possession of ammunition, after he had been previously convicted of arson in the Oakland County, Michigan, Circuit Court.

Count 2 of the indictment alleges that on or about June 16, 2014, Rabenold, aided and abetted by Thompson, made false statements to The Great Outdoors Store, North Kingsville, Ohio in connection with the purchase of a HiPoint, 9mm pistol.

Count 3 of the indictment alleges that on or about July 19, 2014, Rabenold, aided and abetted by Thompson, made false statements to LWS LJC, Inc., Jefferson, Ohio in connection with the purchase of a HiPoint JCP pistol.

Count 4 of the indictment alleges that on or about September 8, 2014, Thompson attempted to distribute less than 100 grams of heroin.

Count 5 of the indictment alleges that on or about September 8, 2014, Thompson used the United States mail in facilitating an attempt to distribute heroin.

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

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

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

A federal indictment was filed charging Christopher L. Gattarello and another Cleveland man with violating the Clean Air Act by failing to remove asbestos prior to demolishing a former factory in Cleveland, law enforcement officials said.

Gattarello and another conspirator were also charged with defrauding a Louisiana company out of nearly $1.2 million.

At the same time, state charges were filed in Cuyahoga County Common Pleas Court against Gattarello and two men, charging them with illegally dumping garbage in Cleveland.

Indicted in federal court are Gattarello, 50, of Cleveland; Willam S. Jackson, Jr., 44, of Cleveland, and Robert A. Shaw, Sr., 74, of Ypslanti, Michigan.

The indictments were announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Ohio Attorney General Mike DeWine, Cuyahoga County Prosecutor Timothy McGinty, Ohio EPA Director Craig W. Butler and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

“We will not allow our neighborhoods to be used as garbage dumps,” Dettelbach said. “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.”

“Thousands of tons of garbage were dumped illegally near a residential neighborhood,” Attorney General DeWine said. “This behavior is inexcusable. Residents have to deal with this significant environmental and health threat, and they deserved to see those accountable brought to justice.”

“Dumping waste in our county is criminal, reprehensible and makes it harder for the people of Cuyahoga County to beautify our region,” said Adrienne Linnick, assistant Cuyahoga County prosecutor. “But dumping roughly 29 million pounds of assorted waste — as was found on the old National Acme site—attracts so many pests and produces so many odors that it can contribute to the demise of a neighborhood.  Nobody wants to do business next to trash heaps, let alone live next to one where they might want to jog, bike, walk a dog or take their children for a stroll.”

Butler said: “I commend the hard work put into this case by Ohio EPA’s special investigations staff and our partnering agencies to bring about this indictment.  Ohio EPA will not tolerate reckless disregard for the health and welfare of Ohio citizens.”

“IRS-Criminal Investigation is committed to unravelling complex financial schemes and following the money to ensure those who profit from crime are held accountable,” Enstrom said.

Gattarello owned and controlled several municipal garbage-hauling businesses in greater Cleveland, including Reach Out Disposal, All Points Rubbish Disposal and Axelrod Rubbish Recycling. Shaw worked for Gattarello at those companies, while Jackson operated a Cleveland building demolition company.
Gattarello and Jackson were each charged with two counts of violating the Clean Air Act.

According to the four-count federal indictment:

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, Jackson 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 Jackson’s 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, Jackson began demolition at Gattarello’s direction.

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.

In the state’s case, Christopher Gattarello, Axelrod Recycling, and Reachout Disposal each were indicted on the same five counts — two counts of illegal open dumping, two counts of operating a solid waste landfill without a license, and one count of operating a solid waste transfer facility without a license. The charges stem from alleged solid waste violations at the former National Acme facility and at 965 Wayside Avenue in Cleveland.

Also in the state’s case, Christopher Gattarello’s brother, Anthony Gattarello, 48, of Highland Heights, was indicted on one count of illegal open dumping and one count of operating a solid waste disposal facility without a license. Jackson was indicted on one count of illegal open dumping. The charges relate to alleged violations at the former National Acme facility.

Additionally, Christopher Gattarello was charged with in federal court with one count each of conspiracy to commit wire fraud and money laundering. Shaw faces one count of conspiracy to commit wire fraud.
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 the federal indictment.

In 2011 and 2012, 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 the federal indictment.

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

The state case is being prosecuted by the Ohio Attorney General’s Office in cooperation with the Cuyahoga County Prosecutor’s Office.

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

The U.S. Department of Justice announced funding awards to seven cities and agencies in the district, aimed at creating, and in some cases protecting, 41 law enforcement positions, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio

Nearly $124 million will be awarded nationally from the Justice Department’s Office of Community Oriented Policing Services (COPS), including $5.1 million in the Northern District of Ohio.

The list of this year’s grantees includes:

• Austintown, $250,000 for two officers.
• Canton, $1,125,000 for nine officers.
• Cleveland, $1,875,000 for 15 officers.
• The Cleveland Metropolitan Housing Authority, $500,000 for four officers.
• Lima, $375,000 for three officers.
• Lorain, $625,000 for five officers.
• Warren, $375,000 for three officers.

“The Justice Department is proud to support the brave men and women serving and protecting our communities in the Northern District of Ohio,” Dettelbach said. “As we work together to develop innovative strategies to reduce firearms violence, dismantle gang activity and break cycle of violence, we need to help the people on the front lines to fight crime.”

“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”

The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.

Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.

For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.

The Justice Department today announced that a North Ridgeville, Ohio, landlord, Emil Bagi, and his management company, Ridgeway Management Ltd., have entered into a consent decree and have agreed pay $30,000 to resolve claims that they discriminated on the basis of race at the Ridge Plaza Apartments, a 36 unit apartment complex they own and operate in North Ridgeville, Ohio.  The settlement must still be approved by the federal district court in the Northern District of Ohio.

According to documents filed along with the settlement agreement the department alleges that the defendants discriminated against African Americans by quoting higher rental and application fee rates to them than to white apartment seekers, and by refusing to show African Americans vacant units when they visited while showing such units to white apartment seekers who visited the complex.  The complaint is based on evidence obtained by the department’s fair housing testing program.  The department sent African-American and white testers posing as prospective renters to the complex and the African-American testers were quoted higher rents and application fees than the white testers.  African-American testers were also told that they could not view a unit at that time, while similarly situated white testers were shown units.  The department also alleges that since acquiring ownership of the property in 1995, the defendants have never leased a unit to an African-American tenant.

Under the terms of the settlement, the defendant wills establish a settlement fund of $20,000 to compensate persons harmed by the alleged discrimination and a $10,000 civil penalty to the United States.  In addition, the defendants will establish non-discriminatory rental policies, obtain fair housing training, and submit to reporting and monitoring requirements for the three year term of the settlement. 

“It is simply unacceptable for a landlord to make renting an apartment more difficult and more expensive because of a person’s race,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.

“The Department of Justice is committed to enforcing the Fair Housing Act using every tool at our disposal,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio.  “This landlord got caught by fair housing testers trying to charge higher rent to minority applicants.  He failed the test miserably – and now he has to pay the price.  Other landlords should keep that in mind when they are showing properties.”

Fighting illegal housing discrimination is a top priority of the Department of Justice.  The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.  More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.  Individuals who believe that they may have been victims of housing discrimination at Ridge Plaza should contact the Justice Department at 1-800-896-7743 or by email at fairhousing@usdoj.gov.  Persons who believe they have experienced housing discrimination elsewhere may contact the Justice Department or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.

A Pennsylvania man was sentenced to nearly three years in prison for selling counterfeit baseball cards of Mickey Mantle, Babe Ruth and others on eBay, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Steven Norris, 39, of Milton, Penn., was sentenced to 32 months in prison after pleading guilty earlier this year to three counts of mail fraud. Norris was also ordered to pay restitution totaling $49,660.

Norris’ brother and co-defendant, Scott Norris, 40, of Brecksville, was previously sentenced to four years of probation for his role in the offense and was ordered to pay restitution of $28,160.

“These defendants used the legends of America’s pastime to fraudulently get tens of thousands of dollars,” Dettelbach said. “This prison sentence should send a message to would-be fraudsters, whether they use baseball cards or elaborate investment schemes to rip off the public.”

From 2006 through 2012, Steven and Scott Norris advertised various baseball cards for sale on eBay. They utilized numerous email addresses to list the cards for sale. The cards, if genuine, would have been rare and valuable, including 1952 Mickey Mantle cards and 1933 Babe Ruth cards, according to court documents.

The Norris’ accepted payments from bidders but failed to deliver the cards as required. In some instances, Steven and Scott Norris sent counterfeit or “reprinted” cards to successful bidders rather than the genuine cards advertised for sale, according to court documents.

In other instances, Steven and Scott Norris contacted individuals who bid on the cards, represented the high bidder was unable to complete the transaction, and asked if the “runner up” bidder was interested in buying the item. They would then negotiate a sales price and direct the buyer to mail a cashier’s check to an address in Brecksville owned by the defendants’ parents. After receiving payment, Steven and Scott Norris would fail to deliver the items in question or sent counterfeit or “reprinted” baseball cards to the buyers, according to court documents.

As a result of the scheme, individual bidders and PayPal suffered losses of approximately $60,310, according to court documents.

The case was prosecuted by Assistant United States Attorney Robert W. Kern following an investigation by the United States Secret Service and the Brecksville Police Department.

Alexander Krivozus, 42, of Carmel, Indiana, was charged earlier this week by a grand jury in Cleveland, Ohio for two counts of making false statements, one count of perjury and one count of obstruction of justice during an investigation into a Cleveland resident who maintained a secret bank account at UBS, the Justice Department and Internal Revenue Service announced.

According to the documents filed with the court, during 2009 through 2011, the Department of Justice and the IRS were investigating Edward Gurary, of Cleveland, Ohio as a result of receiving records from UBS bank in Switzerland from Gurary’s undeclared bank account at UBS.  The records revealed that Gurary had UBS wire funds from his undeclared bank account to various bank accounts in Latvia, and asked UBS to fax the confirmations of some of the wire transfers to a fax number in the (317) area code, a number the government later associated with Krivozus.  Krivozus was subpoenaed to testify, interviewed by the government over two days, and testified before the grand jury.  In each interview, as well as before the grand jury, Krivozus denied knowing about the Gurary transactions or the faxed confirmations.

According to other court records, Gurary was arrested in February 2011, and pleaded guilty on March 08, 2011 in United States District Court in Cleveland, Ohio to one count of filing false income tax returns with the IRS for the years 2004 through 2008.  The charges against Krivozus allege that his statements and denials in the interviews and before the grand jury were false.

Krivozus faces a maximum sentence of five years in prison on each charge, a $250,000 fine, and 3 years of supervised release.

The case was investigated by the IRS Criminal Investigation Division, and is being prosecuted by Justice Department Tax Division trial attorney Richard M. Rolwing and Assistant United States Attorney Robert Patton.

Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at http://www.usdoj.gov/tax/.  Additional information about tax fraud schemes to watch out for may be found on the IRS Criminal Investigation Web site at http://www.ustreas.gov/irs/ci/.

An information was filed against Timothy J. Miller, age 30, of Fremont, Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The information charges Miller with possession of two silencers and an AR-15 firearm that were not registered to him in the National Firearms Registration and Transfer Record.

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 Bureau of Alcohol, Tobacco, Firearms and Explosives.  The case is being handled by Assistant United States Attorneys Noah P. Hood and Gene Crawford.

Jeff Boyd Levenderis, age 58, of Akron, was sentenced to six years in prison for possessing the biological toxin ricin for use as a weapon, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland office.

Levenderis was convicted on four counts -- one count of possessing a biological toxin for use as a weapon, one count of possessing ricin and two counts of making false statements to FBI agents -- earlier this year following a trial.

The evidence and testimony introduced at trial showed that Levenderis produced ricin, a deadly biological toxin, at his home in Akron, sometime after 2000 and kept it in his freezer until it was recovered by FBI agents in January 2011.

The evidence showed that Levenderis intended to make a “weaponized” form of ricin. The evidence also showed that Levenderis planned to use the ricin against his stepfather and against first responders who might respond to a fire Levenderis planned to set at his house as part of an elaborate suicide plan.

Testimony at trial confirmed that the substance Levenderis manufactured contained active ricin and that it contained hundreds of lethal doses if inhaled or injected.

The case was prosecuted by Assistant United States Attorneys Matthew W. Shepherd and Om Kakani and Erin Creegan, Trial Attorney with the National Security Division of the United States Department of Justice. The conviction resulted from an investigation conducted by the FBI.

A Canton man was sentenced to more than two years in prison and ordered to pay nearly $200,000 in restitution for tax violations, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of the IRS' Cincinnati Field Office.

Frederick C. Berndt, 39, previously pleaded guilty to five counts. U.S. District Judge Donald C. Nugent sentenced Berndt to 25 months in prison and ordered him to pay $197,206 in restitution.

"This sentence serves as a message to those who would shirk their responsibilities to pay taxes," Dettelbach said.

“The privilege of living well in the United States carries certain responsibilities, one of which is the voluntary payment of taxes,” Enstrom said. “IRS Criminal Investigation will vigorously investigate those individuals who knowingly and willfully evade their tax obligation.”

Berndt, then chief executive officer of 11 Good Energy, Inc, evaded paying taxes in calendar years 2003, 2004 and 2006 and failed to file income taxes in years 2007 through 2010, according to court documents.

The case is being prosecuted by Assistant U.S. Attorney Ann C. Rowland and former Assistand U.S. Attorney Justin J. Roberts following an investigation by the Internal Revenue Service.

A Medina mas was indicted for possession with intent to distribute heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Curtis DeBose, 34, possessed the heroin on August 7, 2014, according to the indictment.

Debose was arrested by members of the Medina County Drug Task Force and Drug Enforcement Administration on a criminal complaint after an nvestigation. 

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 Medina County Drug Task Force, Medina Police Department and the Drug Enforcement Administration.  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.

Ian A. Leach, 26, of Louisville, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges that from on or about May 27, 2014, through on or about July 13, 2014, Leach 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. 

The indictment also charges that on September 4, 2014, Leach 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 Canton Office of the Federal Bureau of Investigation and the Canton Police Department.

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

A grand jury returned a four-count indictment charging a Mississippi man for a conspiracy in which he defrauded a Tennesse bank out of $1.2 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Paul D. Allen, age 52, of Oxford, Mississippi, age 52, was indicted on one count of conspiriacy to commit bank fraud and three counts of bank fraud.

Allen, a self-proclaimed entrepreneur and businessman, moved to the Northern District of Ohio in 1999. Prior to that, he lived in Tennessee, where he developed a relationship with Stephen Henry, an unindicted co-conspirator.

Allen and Henry executed a scheme to defraud Oakland Deposit Bank and obtain money and property from the bank by means of materially false and fraudulent representations. The bank was chartered and had offices in Tennessee. Henry served as president of the bank and also served as a loan officer, according to the indictment.

Allen contacted several people in Ohio and recruited them to invest in various business projects he promoted, including B-Telecom Incorporated, a purported data-storage company. Allen promised investors they would receive a percentage ownership in the business in return for the investors obtaining loans from the Oakland Deposit Bank in their own names. Allen told the investors the loan proceeds would be used for operating the business, according to the indictment. 

Between 2003 and 2008, Allen had the investors complete loan documentation in support of the loans, and then submit the loan applications to Henry, or accompany the investors when they submitted the loan applications to Henry, according to the indictment.

Allen forged borrower signatures on loans for amounts ranging between $42,770 and $168,000. He sometimes took out additional loans in borrowers' names without their knowledge. He used the proceeds to pay personal expenses or to make interest payments on existing loans, according to the indictment.

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

The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation (Cleveland Division, Painesville Resident Agency) and with the assistance of the Geauga County Prosecutor’s Office.

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

A Lucas man was sentenced to 20 years in prison for crimes related to child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Robert A. Anderson, 69, pleaded guilty earlier this year to four counts, including production of child pornography, receipt of visual Depictions of minors engaged in sexually explicit conduct and removal of property to prevent seizure.

From 2003 through 2011, Anderson did use, persuade, induce, entice and coerce two minors to engage in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced or transmitted using materials that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer, according to court documents.

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

The former manager of the U.S. Postal Service’s Vehicle Maintenance Facility in Cleveland was sentenced to nearly four years in prison for taking cash bribes in exchange for awarding business and contracts from the Postal Service, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Monica Weyler, Special Agent in Charge of the U.S. Postal Service Office of Inspector General.

Kevin Hood, 46, of Richmond Heights, was sentenced to 46 months in federal prison by U.S. District Judge Dan Polster. Hood pleaded guilty earlier this year to one count each of Hobbs Act extortion and theft of government property.

“Some defendants appear to still have not gotten the message that accepting bribes has no place in Northeast Ohio,” Dettelbach said. “I commend the work of U.S. Postal Service Office of Inspector General’s special agents. The corruption was persistent and pervasive, and would be continuing but for their hard work.”

“This crime is particularly egregious considering the defendant was promoted to this position because the former manager was convicted on similar charges,” Weyler said.

Hood worked for the Postal Service since 1998 and most recently served as the manager of the Vehicle Maintenance Facility at 1801 Broadway Avenue in Cleveland. In that job, Hood had the ability to award and monitor contracts on behalf of the Postal Service.

The owner of a Cleveland company that has contracts with the Postal Service said Hood approached him for money in order to get work and contracts from the Postal Service. In late 2011, the business owner paid Hood in cash and believed he had to continue to pay Hood to receive work, according to court documents.

Hood received $15,000 in bribes, more than $4,000 in free vehicle repairs, at least $900 worth of stolen parts, according to court documents and statements.

On March 6, the owner paid Hood $4,500 in $100 bills. Hood placed the envelope containing the bills in his left boot. The transaction was monitored and recorded by USPS Office of Inspector General Special Agents, according to court documents.

Judge Polster addressed Hood during the sentencing hearing: “It is hard to fathom on top of that for you to continue that conduct when you pick up the paper every day and hear about the prosecution and investigation of other individuals. I’m not sure if you thought it was okay or nobody’s going to find you. I don’t know what you were thinking.”

Hood is the third vehicle maintenance facility (VMF) manager is recent years to be sentenced to prison as the result of investigations by Cleveland USPS OIG special agents. In 2009, a former Cleveland VMF manager was sentenced to 22 months in prison after pleading guilty for his role in a postal theft and kickback conspiracy. In 2012, a former Akron VMF manager was sentenced to three months in custody and three years of probation after pleading guilty for his role in a conspiracy to accept gifts and payments in exchange for providing postal vehicle repair work to a contractor.

This case was prosecuted by Assistant U.S. Attorneys Miranda Dugi and Antoinette T. Bacon following an investigation by the U.S. Postal Service Office of Inspector General.

Attorney General Eric Holder announced Monday that the Justice Department has selected four sites to receive a total of $2.6 million in grants to implement promising models aimed at reducing domestic violence homicides.  Over the next two years, these sites—Pitt County, North Carolina; Cuyahoga County, Ohio; Contra Costa County, California; and the Borough of Brooklyn, New York—will institute screening models and evidence-based strategies that will allow them to anticipate potentially lethal behavior, take steps to stop the escalation of violence, and – ultimately – save lives.  The National Institute of Justice will conduct an evaluation of the models in each of the selected sites to identify the key components needed to successfully adapt the domestic violence homicide prevention models nationwide.

“Domestic violence is more than a crime against just the victim,” said Attorney General Holder in a video message posted on the Justice Department’s website.  “It is a crime against all of us as a society.  And our collective response must treat it as such.”

The complete text of the Attorney General’s video message is below:

“Domestic violence is a devastating crime that claims far too many lives.  Studies have shown that, on average, three women die every day in America at the hands of their partner or ex-partner.  And from 2009 to 2012, 40 percent of mass shootings started with the killer targeting a girlfriend, wife, or ex-wife.  These are tragic and shocking statistics, and the Justice Department is working hard to bring an end to this horrific status quo. 

“Under the Violence Against Women Act, which was reauthorized last year, the Department of Justice is taking vital action to protect and empower women and partners who are being exploited and abused.  Through our Office on Violence Against Women, we are working to support victims and hold perpetrators accountable by promoting a coordinated community response.  And in the reauthorized Act, this Administration helped to secure important new protections for women in Indian Country, LGBT individuals, and others.

“These are important achievements – but we must do more.  That’s why, in 2013, I was proud to stand with Vice President Biden to unveil a new grant-funded initiative to help reduce domestic violence homicides.  This funding provided twelve communities– in states across the country – with the opportunity to reduce domestic violence homicides by effectively identifying potential victims and monitoring high-risk offenders. 

“And today, I am pleased to announce that four sites have been selected to receive a total of $2.6 million to implement promising models aimed at reducing domestic violence homicides.  In Pitt County, North Carolina; in Cuyahoga County, Ohio; in Contra Costa County, California; and in the Borough of Brooklyn, New York – these two-year awards will make a tremendous difference, helping local officials to put their anti-violence initiatives into practice.

“In that time, they will institute screening models and evidence-based strategies that will allow them to anticipate potentially lethal behavior, take steps to stop the escalation of violence, and – ultimately – save lives.  These innovative programs can then be studied and replicated in order to protect those who are at risk – and stop would-be abusers – across the United States.

“We have come a long way since the time when these incidents of abuse were considered private, household matters.   But we have a ways to go still.  Domestic violence is more than a crime against just the victim.  It is a crime against all of us as a society.  And our collective response must treat it as such.

“Going forward, the Justice Department will continue to build our important efforts to end violence against women and girls – no matter who they are or where they live – because all Americans deserve to feel safe and secure in their homes, on their college campuses, and on the streets of our communities.
“As we strive to end the epidemic of domestic and intimate partner violence, all of us have a great deal of work to do.  But this Administration, this Department of Justice – and I personally – will not waver in that effort: to shine a light on violence and abuse; to protect and empower women; and to make domestic violence homicide a thing of the past.”

The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php.

Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation for the Northern District of Ohio, and Steven M. Dettelbach, United States Attorney for the Northern District of Ohio announce the federal arrest of Izak Sirk De Maison (aka Izak Zirk Engelbrecht, aka Zirk Engelbrecht), 58 years of age, and Stephen J. Wilshinsky, 59 years of age, in Los Angeles, California. 

De Maison, a self described “merchant banker”, devised a scheme and artifice to defraud investors by creating public “shell” companies, executing a merger of an emerging business with the shell to create a publicly traded company, and then paying undisclosed kickbacks to brokers, including Wilshinsky, in exchange for using their clients’ funds to purchase shares of the resulting penny stock.  The public companies that De Maison created typically conducted minimal actual business activity and had little revenue with no profit.  To generate income from the shell companies, De Maison utilized various schemes to sell his company shares to generate personal income.  De Maison utilized the same individuals over and over in his schemes. 

The complaint alleges that De Maison conspired with brokers, including Wilshinsky, to ensure that any time he wanted to sell free trading shares on the open market, there would be an available buyer.  Despite typical low volume trading in the stocks controlled by De Maison, when he wanted to sell on the open market, orders were filled almost instantaneously.  This immediate fulfillment was because De Maison conspired with brokers who had some discretion to make trades in their investor/clients’ accounts.  De Maison paid brokers an undisclosed “kickback”, typically fifty percent of the total sale price, in exchange for the brokers using the investor/clients’ accounts the brokers controlled to purchase De Maison’s stocks on the open market.  It is unlawful to not disclose the kickbacks to the investor/clients and to not disclose to the investor/clients that their accounts were, in fact, trading in such risky penny stocks. 

Another necessary aspect to this scheme for it to succeed was for De Maison, at least for some period of time, to cause the stock price in the companies he controlled to rise before plummeting to a price point that reflected the actual business performance.  De Maison conspired with others to inflate the price point through false reporting and manipulative business activities, all of which affected the stock price and helped De Maison achieve the maximum value out of the shares he owned, according to the complaint.

De Maison and Wilshinsky are both charged with conspiracy to commit wire fraud and securities fraud.  De Maison is also charged with wire fraud, securities fraud, money laundering and use of interstate commerce for purpose of securities fraud.  This matter is considered an on-going investigation.  Additional charges are expected against these two individuals and additional individuals are expected to be charged for their roles in this multi-million dollar conspiracy.   A number of victims are from the Northern Ohio area. 

“These two are nothing more than sophisticated thieves,” said Anthony.  “Putting a suit on and calling it investing does not make stealing acceptable.  The FBI will continue to work with the SEC to make sure these two and their additional conspirators answer for this multi-million dollar fraud.”

”The FBI and SEC continue to work tirelessly to investigate financial fraud,” Dettelbach said. “We will prosecute cases as they are brought to us to ensure faith in the markets and to seek justice for those who have been victimized.”

De Maison and Wilshinsky were taken into custody by FBI agents from the Los Angeles office without incident. 

A complaint is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted, 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; their role in the offenses; and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced an indictment was filed against Wael Ahmed Hageali, age 44, of Holland, Ohio.   

The indictment charges Hageali with making a false statement on a passport application on March 17, 2014 and aggravated identity theft.

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 Department of State, Bureau of Diplomatic Security.  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 19-count federal indictment was filed charging a former Gates Mills resident with operating a $9.6 million investment scheme in which he defrauded investors and enriched himself, law enforcement officials said.

Oscar Villarreal, age 27, of Mexico, used the ill-gotten money to purchase a Lamborghini, a Steinway piano and otherwise live a lavish lifestyle, according to the indictment.

He has been charged with 10 counts of wire fraud, seven counts of money laundering, one count of securities fraud and one count of investment adviser fraud.

“This defendant used lies and deception to rip off investors and lead an extravagant lifestyle,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.

“Mr. Villarreal utilized his charisma and bogus information to defraud hard working individuals,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “It is believed that Mr. Villarreal has fled the Cleveland area and the FBI is asking the public to provide any information they have regarding his current whereabouts so that he may answer for his numerous years as a fraudster.”

“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

The investment scheme took place between 2008 and 2013. At different times, Villarreal operated numerous partnership or limited liability corporations, including WW Capital III, L.P., WW Capital III LLC (also known as WWCIII), WW Capital Partners LLC, (also known as Fund II) and Black Mountain Enterprises, LLC, and maintained several bank accounts and E-Trade trading accounts, according to the indictment.

WWCIII was a fund that purported to pursue investments with companies in Mexico related to the petroleum, steel, metals and real estate industries. Villarreal promoted and sold investment contracts in the form of limited partnership interests in the funds to approximately 46 investors in Ohio, Florida, New Jersey and New York in the amount of more than $9.6 million, according to the indictment.
From January 2008 through January 2009, Villarreal solicited approximately $550,000 from seven investors for Fund II, falsely representing the money would be used in the Mexican metal industry, according to the indictment.

In February 2009, Villarreal distributed approximately $715,000 to Fund II investors, which he misrepresented as profits from their investment. He failed to disclose to investors that he had received a consulting fee of $1.5 million from a Cleveland-area company for unrelated services, and that he used money from that, as well as from his personal line of credit, to pay Fund II investors. Villarreal later falsely represented to potential investors in WWCIII that Fund II had generated a 45 percent rate of return, when he knew Fund II had generated no returns, according to the indictment.

Rather than investing WWCIII funds for their stated purpose, Villarreal used investor money to make speculative trades from his E-Trade accounts, pay business expenses necessary to promote the investment scheme, purchase luxury items such as a Steinway piano and a Lamborghini, and otherwise fund a lavish lifestyle, according to the indictment.

Villarreal falsely reported to WWCIII investors, both orally and in writing, that their funds would be pooled and used to invest in the Mexican steel and petroleum industries, Mexican real estate and/or Mexican infrastructure projects. Villarreal further represented that he would use personal and family business connections in Mexico to make the investments, according to the indictment.

Instead, he diverted investor funds into an E-Trade account where he made speculative stock trades which lost millions of dollars in investor funds. Villarreal falsely represented to WWCIII investors that they were achieving positive returns on their investments, causing most investors to be lulled into the belief they were making money. Based upon his false statements, some of the WWCIII investors placed even more money into other investment opportunities offered by Villarreal, according to the indictment.

This indictment is the result of an investigation by Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigations and the Securities and Exchange Commission. The case is being prosecuted by Assistant U.S. Attorney Adam Hollingsworth and Special Assistant U.S. Attorney Derek Kleinmann.

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

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

An Elyria man faces a likely sentence of 20 years in prison after pleading guilty to distributing heroin and fentanyl, including fentanyl that caused the death of an Elyria resident last year, law enforcement officials said.

The guilty plea was announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Ohio Attorney General Mike DeWine, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, and Elyria Police Chief Duane Whitely.

Siarres R. Noble, age 29, pleaded guilty to four counts of distribution of fentanyl, two counts of distribution of heroin and one count of possession with intent to distribute fentanyl.

Noble’s plea agreement calls for a recommended sentence of 20 years in federal prison. He is scheduled to be sentenced Dec. 17.

Noble admitted selling heroin and fentanyl at various times in March and November 2013, including fentanyl that he sold on November 8, 2013, which resulted in the death of an Elyria resident one day later.

“The drugs sold by this defendant killed a woman,” Dettelbach said. “Heroin and fentanyl use leads to death, destroys lives and damages families. This should send a clear message to drug  dealers who are doing nothing more than selling poison, that we in law enforcement will work death and overdose cases back from the victims, identify who supplied them the drugs and hold them accountable for their actions.”  

“State, local and federal authorities are taking the opiate epidemic very seriously, and drug dealers need to know that they will be held accountable for overdose deaths,” said Attorney General DeWine.  “Not only are these dealers putting the lives of those they sell to at risk, but they are also putting themselves at risk of being locked up for decades in prison.”

“Information about heroin and other dangerous illegal drugs has become too common place in our daily news reports,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The partnership between law enforcement, social services and the community must continue in order to further attempts to rid our territory of these highly addictive substances.”  

Elyria Police Chief Duane Whitely said: “There is a serious drug problem in this country and it is important that law enforcement at every level take the steps necessary to combat the sales of illegal drugs.  Sadly, in this case, the sale of drugs led to someone’s death.  The weapon used may not have been a gun, but it is just as deadly. 

“I want to thank everyone involved in this case for the effort they put into it.  Starting with the response from Elyria Police Investigative Unit for responding so quickly to the spike in overdoses that led to the arrest of Siarres Noble for selling the drugs that led to the death. I appreciate the great working relationship with have with the FBI and the U.S. Attorney’s office. It is the strong working relationship between all of these agencies that led to the federal conviction of Siarres Noble,” Whitely said.  

This case was investigated by the Elyria Police Department and the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Robert F. Corts and Vasile C. Katsaros and Special Assistant United States Attorney Margaret Tomaro of the Ohio Attorney General’s Office. 

An indictment was filed charging Raul Zarazua-Rubio, 46, of Mexico, with unlawful reentry into the United States on September 1, 2014, 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 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 Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations, Strongsville, Ohio.  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.

Three New York men were indicted on one count of conspiracy to commit and committing credit card fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Indicted are: Mohammad Parvez, age 23, of Brooklyn, New York; Fazly Azzam, age 22, of Brooklyn, New York; and Shaha Jalal, age 35, of New York, New York.

The indictment alleges that in August 2014, Parvez, Azzam and Jalal conspired with each other to commit fraud in connection with access devices.  The defendants illegally obtained credit card account numbers assigned to more than  100 credit cards.  An unidentified member of the conspiracy electronically encoded the illegally obtained credit card numbers onto credit cards embossed with the names of Parvez, Azzam and Jalal.  Using these credit cards, the defendants obtained and attempted to obtain property and services from retail stores, according to the indictment.

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

The investigation preceding the indictment was conducted by the Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations and the United States Secret Service.   The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.

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

A grand jury returned a one-count indictments charging Jeremy D. Carpenter, 33, of Cleveland, with one count of bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Carpenter robbed the U.S. Bank, 2132 Brookpark Road, Cleveland, Ohio, on August 5, 2014

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

The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall, and was investigated by the Cleveland Police Department and the Cleveland Office of the Federal Bureau of Investigation.

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

A grand jury returned a one-count indictment charging Robert T. Gauna, 31, of Bay Village, with one count of bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Gauna robbed the Lorain National Bank, 42935 North Ridge Road, Elyria Township, Ohio, a federally insured financial institution, on July 14, 2014. 

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

The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall, and was investigated by the Lorain County Sheriff’s Office and the Elyria Resident Agency of the Federal Bureau of Investigation. 

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

A Cuyahoga Falls man was sentenced to 30 years in prison for attempting to purchase a 10-year-old girl, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation.

Robert W. Thomas, age 37, was found guilty earlier this year on three counts: offering to buy a child, enticement and receipt and distribution of visual depictions of minors engaged in sexually explicit conduct.

"This sentence is well-deserved given the disturbing nature of the charges," Dettelbach said. “Our office remains committed to working with the FBI and all our law enforcement partners to defend our children and fight human trafficking.”

“This case is the result of outstanding investigative work completed by the FBI and the Alliance Police Department and our partners,” Anthony said. “Law enforcement will continue to proactively and aggressively pursue predators that intend to harm our children.”

"The city of Alliance is very satisfied with the result in this matter," said Law Director Jennifer L. Arnold. "The level of professionalism and cooperation of all the agencies involved was impressive. I was proud to work with everyone involved, especially Detective Shatzer, who spearheaded the investigation."

On January 11, 2014, detectives from the Alliance Police Department arrested a man who was attempting to purchase a 10-year-old female child to keep and use for sexual purposes. The man had posted on an online site asking for anyone willing to arrange a “marriage” of their daughter to him. An Alliance Police Department officer, also assigned to the Ohio Internet Crimes Against Children Task Force, responded to the man’s posting and began a conversation, according to court documents.

Thomas agreed to a meeting with the online undercover officer to purchase for $400 what he believed to be a 10-year-old child. Thomas and the officer, acting in an undercover capacity, met in a business establishment in Alliance and then went outside to complete the “transaction.” As the two approached the undercover officer’s vehicle, Thomas was arrested. At the time of arrest, Thomas had $400 cash in his hand, according to court documents.

This case was investigated by the Federal Bureau of Investigation and Alliance Police Department, with assistance from the Cuyahoga Falls Police Department. The case was prosecuted by Assistant U.S. Attorney Michael A. Sullivan.

A Highland Heights man pleaded guilty today after sending a letter containing white powder to the Internal Revenue Service, 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.

John T. Buchak, 27, pleaded guilty to one count of threatening use of a weapon of mass destruction. He is scheduled to be sentenced on Dec. 4.

Buchak sent a letter via the U.S. Mail to the Internal Revenue Service on March 31, 2014, that contained white powder, according to the indictment.

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

The former head of a Cleveland-area anti-poverty agency pleaded guilty to accepting more than $23,000 in cash, home renovations and other things of value in exchange for steering work to specific contractors, 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..

Jacqueline K. Middleton, 69, of Shaker Heights, pleaded guilty to two counts of honest services fraud, one count of bribery in federally funded programs and one count of Hobbs Act Conspiracy. She is scheduled to be sentenced Dec. 3.

“Middleton violated the trust of taxpayers and the people she had pledged to serve,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

"Middleton padded her pocket with monies for federally funded contracts she awarded," Anthony said.  "Law enforcement will continue to  root out individuals illegally capitalizing on their trusted position. ”

Middleton served as president and chief executive officer of the Council of Economic Opportunities of Greater Cleveland. The CEOGC was organized with the purpose of serving low-income people of Cuyahoga County and Greater Cleveland. The CEOGC administered several federal, state and local programs designed to address the needs of low-income individuals, including Head Start, the Community Services Block Grant program and the Home Energy Assistance program.

From 2008 through around August 7, 2012, Middleton used her official position to enrich herself by soliciting and accepting gifts, payments and other things of value from contractors who did business with CEOGC. These gifts and payments were made in exchange for favorable action from Middleton for the payors and their companies, according to the information.

Middleton solicited and accepted gifts, payments and other things of value totaling more than $12,017 from a person identified as Contractor No. 1 and totaling approximately $11,200 from a person identified as Contractor No. 2. The things of value included kickbacks from CEOGC payments, home renovation work and payments to vendors for related supplies on her behalf, according to the information.

Middleton provided official favorable action Company No. 1 and Contractor No. 2 as requested and as opportunities arose. That included authorizing CEOGC contracts which retained Contractor No. 2 for consulting services and which retained Company No. 1 for work including parking lot renovations, classroom remodeling and flooring remodeling at various sites and offices administered by CEOGC, according to the information.

The case is being prosecuted by Assistant U.S. Attorney Michael L. Collyer following an investigation by the Federal Bureau of Investigation and the Department of Health and Human Services – Office of Inspector General.

Two officials at a Youngstown construction and excavation company were each sentenced to nearly two years in prison for willfull failure to pay taxes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Scott Bonamase, age 49, of Streetsboro, Ohio, and David Bonamase, age 53, of Canfield, Ohio, were sentenced to 21 months in prison after they avoided paying more than $279,000 in taxes, according to the indictment.

The charges were in connection with their operation of A. Bonamase Contracting, Inc., which employed between 10 to 25 employees for the years 2006 through 2009. During that time period, Scott Bonamase willfully under-reported employee gross wages to the Internal Revenue Service and Scott and David Bonamase omitted payments to employees in the books and records of the company, according to court documents.

A. Bonamase Contracting, Inc. had contracts with government agencies that required certified payroll reports to verify that they were paying the prevailing wage. Scott and David Bonamase willfully falsified, signed, and submitted certified payroll reports to the government. Scott and David Bonamase certified that their employees were being paid the prevailing when, in fact, they were paid less, according to court documents.

The case results from an investigation conducted by the United States Department of Labor and Department of Housing and Urban Development, Office of the Inspector General and the Internal Revenue Service, Criminal Investigation agents. This case is being prosecuted by Assistant United States Attorney Henry F. DeBaggis.

Cleveland-based Kelly Plating Company pleaded guilty to making illegal discharges with high concentrations of metals such as chrome and zinc into the sewer system, which in turn, after treatment, discharges to Lake Erie, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The company pleaded guilty today to one count of conspiracy to violate the Clean Water Act and one count of violating an approved pretreatment program.

An employee at Kelly Plating bypassed the pollution control equipment and discharged partially treated wastewater and sludge directly into the sewer system.  These discharges contained high concentrations of chrome and zinc. This happened at least 14 times between March and May, 2012, according to court documents.

Under the terms of the plea agreement, both parties agree to recommend to the court that Kelly Plating pay a $50,000 fine as well as a $25,000 community service payment. The community service payment will be made to a charitable organization to be presented to the court prior to sentencing. The charitable organization will use the payment to improve water quality in Northeast Ohio, according to the plea agreement.

Sentencing is scheduled for Dec. 11.

Criminal charges remain pending against a Kelly Plating employee who was indicted earlier this year.

This case is being prosecuted by Special Assistant U.S. Attorney Brad Beeson following an investigation by the Ohio EPA, U.S. EPA, the Ohio Bureau of Criminal Investigation, and Northeast Ohio Regional Sewer District.