Northern District of Ohio

A 46-count indictment was filed charging a Solon doctor with illegally distributing thousands of doses of prescription painkillers such as Percocet, Oxycontin and Opana to people with no legitimate medical need for the drugs, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Syed Jawad Akhtar-Zaidi, age 59, was indicted on one count of conspiracy to distribute controlled substances, one count of health care fraud, 36 counts of distribution of controlled substances, and eight counts of money laundering.

Zaidi operated Pain Management of Northern Ohio (PMNO) at 34055 Solon Road in Solon, where he issued drug orders purporting to be “prescriptions” for controlled substances, primarily oxycodone, oxymorphone, hydrocodone, hydromorphone and morphine, to customers they characterized as “patients,” according to the indictment.

Zaidi knowingly and intentionally distributed and dispensed controlled substances for no legitimate medical purpose and outside the court of professional practice through several actions, such as: without adequately verifying the patient’s identity and medical complaint; without adequate and reliable patient medical history; without establishing a true diagnosis; without performing a complete examination; without establishing a treatment plan and without maintaining adequate medical records, according to the indictment.

Zaidi used pre-signed blank prescription forms upon which PMNO staff would fill in the controlled substance and dosage to be prescribed. He also instructed staff not to report customers who staff suspected of being “drug seeking” and/or “doctor shopping to law enforcement, according to the indictment.

The indictment details dozens of transactions in 2012 and 2013 in which customers received thousands of doses of Oxycontin, Percocet, Vicodin, morphine and other prescription painkillers.

Zaidi enriched himself by submitting claims to Medicaid, Medicare and various private insurers, and receiving payments, for office visits which served no legitimate medical purpose. Zaidi selected the billing code, which his staff then submitted on the doctor’s behalf, according to the indictment.

The charges also seek to forfeit more than $4.8 million in accounts controlled by Zaidi as well as 139 pieces of jewelry valued at more than $90,000. Prosecutors contend the property is derived from gross proceeds traceable to the violations laid out in the indictment.

The case was prosecuted by Assistant U.S. Attorneys Henry DeBaggis and Matthew Kall following an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation and the Office of Health and Human Services – Office of Inspector General.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that Gregory Allen Mays, 53, of Massillon, Ohio, was charged with producing visual depictions of minors engaged in sexually explicit conduct.

The indictment charges that from in or about June 14, 2013, through on or about July 23, 2013, Mays did use, persuade, induce, entice and coerce a minor 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. 

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 Carol M. Skutnik.  The case was investigated by the Federal Bureau of Investigation, Canton 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 federal indictment was filed today charging four individuals with trafficking in counterfeit trademarks, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Osama Iwais, age 36, Samer Iwais, age 31, Tarek Iwais, age 35, and Kalid Iwais, age 36, all of Cleveland, Ohio, are named in the one-count indictment.

The indictment alleges that between December 13, 2011, and March 7, 2012, the defendants did intentionally traffic, attempt to traffic and aid and abet the trafficking and attempted trafficking in goods, specifically, Ralph Lauren Polo shirts, boots and shorts, Ugg boots, Nike footwear, Timberland boots, Gucci footwear, New Era hats, True Religion jeans, North Face jackets and Lacoste boots, while knowingly using on or in connection with said merchandise counterfeit trademarks which were identical to and substantially indistinguishable from marks that were in use for such goods, and which were registered with the U.S. Patent and Trademark Office.

The indictment alleges that the merchandise in question, if genuine, had an aggregate value of approximately $95,000.

The case is being prosecuted by Assistant United States Attorney Robert W. Kern following an investigation by the Federal Bureau of Investigation and the Cleveland Police Department.

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

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

A Cleveland man was sentenced to 17 1/2 years in prison for his role in a major heroin trafficking conspiracy, 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.

Maceo Moore, 37, pleaded guilty in February to one count of conspiracy to possess with intent to distribute heroin.

U.S. District Judge Christopher Boyko sentenced Moore to 210 months in federal prison. Boyko also ordered Moore to forfeit $9,550 in cash and a 2007 Mercedes Benz.

“This defendant was featured in movies and music videos but now his talents will be confined to federal prison,” Dettelbach said. “He played a starring role in a criminal conspiracy involving heroin and firearms, and for that, richly deserves this sentence.”

“Maceo Moore will no longer profit from harming others by selling drugs as his glamorization of a drug dealer’s lifestyle appropriately ends in a lengthy prison sentence,” Anthony said.  “Thankfully, Moore was brought to justice by law enforcement professionals who work every day to protect the public from violent people like him.”

Moore obtained heroin that was originally shipped from Atlanta to Northeast Ohio, which he in turn sold to others, according to court documents.

Moore and others also planned and committed burglaries and robberies from other drug dealers, customers, and each other. This was done to fund their drug trafficking, to obtain heroin and other drugs, and to collect drug debts, according to court documents.

The men then sold the stolen heroin at discounted prices or used the stolen money to obtain heroin. They identified potential victims through a variety of ways, including targeting those who appeared to have expensive jewelry or cars or by using women to gather information about potential victims and report back to them. They sometimes used firearms or zipties to restrain victims, according to court documents.

According to a sentencing memo filed in the case, Moore told undercover officers in 2012: “I sold drugs, but I started getting more money when I started taking from the drug dealers. That’s how, honestly, that’s how I got my money. I sold drugs, but I always been the hustler, so I sold drugs, I find out such and such over here got it, they doing good, well, we going to get that. Flat out, we going to get it.”

This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd, Daniel J. Riedl, and Matthew B. Kall, following a multi-year investigation by the Northern Ohio Law Enforcement Task Force (NOLETF).

The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, U.S. Coast Guard Investigative Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Westlake Police Department, and Shaker Heights Police Department. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives. HIDTA supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.

The investigation was assisted by the Hotel Interdiction Team, another HIDTA initiative composed of members of the FBI, Cuyahoga County Sheriff’s Office, Homeland Security Investigations, and police departments from Broadview Heights, Brooklyn, Brook Park, and Independence.

Two men from Northeast Ohio were charged with conspiring to defraud a Cleveland credit union out of nearly $1.9 million, law enforcement officials said.

Gary Chaney, 49, of Streetsboro, and Patrick Bruckman, 58, of Chester Township, were each charged with one count of conspiracy to commit theft or embezzlement from a credit union.

The charges were announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony and Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.

Bruckman and Chaney both maintained personal accounts at Taupa Lithuanian Credit Union, as well as a corporate account for Network Systems Engineering (NSE), a computer consulting firm they owned together, according to the information.

Bruckman, Chaney, credit union CEO Alex Spirikaitis and others conspired to defraud the credit union from at least 2007 through 2013. During that time, Bruckman and Chaney knowingly wrote checks drawn on their personal and corporate accounts for which there were insufficient funds, according to the criminal information.

Chaney withdrew approximately $241,000 from his personal account, Bruckman withdrew approximately $63,000 from his personal account and they collectively withdrew $1,582,000 from their corporate accounts for which there were insufficient funds, for a total loss to the credit union of $1,886,000, according to the information.

Chaney and Bruckman did not have sufficient funds in their accounts to cover the checks, and Spirikaitis allowed the overdrafts to clear the account. Chaney and Bruckman made minimal deposits to their accounts, which did not offset the large amount of funds which Spirikaitis transferred to their accounts at Taupa. At no time during the conspiracy did Chaney or Bruckman submit any credit applications or loan documentation for the money they received from Spirikaitis to cover their overdrafts, according to the information.

The National Credit Union Administration and the Ohio Department of Commerce took possession of Taupa last year and placed it into receivership due to its insolvency. Taupa, based in Cleveland, had about 1,150 members and assets of approximately $24 million, according to court records.

Spirikaitis, former teller Michael Ruksenas and Vytas Apanavicius have previously been found guilty for their roles in conspiracies related to defrauding the credit union.

This case is being prosecuted by Assistant United States Attorney Robert J. Patton and Special Assistant United States Attorney Derek Kleinmann. The case was investigated by the Federal Bureau of Investigation.

If convicted, the defendants’ sentences 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.

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

A Toledo man was sentenced to more than 18 years in prison sex trafficking involving a minor, 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.

Taurus Devault, 27, was sentenced to 224 months in prison by U.S. District Judge James Carr. Devault pleaded guilty last year to one count of sex trafficking of a minor and one count of conspiring to use a facility of interstate commerce (i.e. the internet and the telephone network) to promote a business enterprise involving prostitution.

Co-conspirator Duane Hill, 26 and also from Toledo, was sentenced to more than 16 years in prison earlier this year.

"These defendants made their profits using underage girls," Dettelbach. "We will continue to work with our partners to prosecute human trafficking cases in all their many forms."

"Protecting our nation's children is one of the highest priorities in the FBI," Anthony said. "No one should be able to pick up a phone or go online to purchase a child.  People who traffic children for their own financial gain deserve - and are getting - the highest possible sentences the court can hand down. "

Devault and Hill conspired together in 2012 to offer underage girls for sale on the web site backpage.com to engage in commercial sex acts, according to court documents.

The investigating agency in this case is the Northwest Ohio Violent Crimes Against Children Task Force which consists of the Federal Bureau of Investigation, Toledo, Ohio, Toledo Police Department, Perrysburg Township Police Department, Lima Police Department, Oregon Police Department, Fulton County Sheriff’s Office, Ottawa County Sheriff’s Office, Ohio State Highway Patrol, and the Bureau of Criminal Investigation. The case is being handled by Assistant United States Attorney Daniel Hurley.

The Justice Department announced today that Massillon, Ohio landlords John and Mary Ruth have agreed to pay $850,000 to settle lawsuits filed by the Justice Department and other parties alleging that the Ruths discriminated on the basis of race and familial status at properties they formerly owned in Massillon. 

The settlement must still be approved by United States District Judge John R. Adams in the Northern District of Ohio. 

The proposed settlement would resolve a lawsuit filed by the department on October 31, 2011, alleging that the Ruths and the companies through which they manage their properties had discriminated against African Americans and families with children at Yorkshire Apartments, Thackeray Ledges and Wales Ridge— three apartment complexes located in Massillon, Ohio.  The settlement would also resolve related lawsuits raising similar allegations filed by Stark County, the Ohio Civil Rights Commission and several former property managers and tenants at the complexes.  In an order issued on March 31, 2014, the court noted that 10 of Mr. Ruth’s former employees had testified that they were instructed to discriminate against African Americans and that other former employees had testified that they been instructed to discriminate against families with children.  The court ruled that the department had presented sufficient evidence of a pattern or practice of unlawful discrimination by the defendants for the case to go to trial before a jury.  

Under the terms of the settlement, the defendants will pay:

• $650,000 in damages and attorney’s fees to the plaintiffs in the lawsuits filed by the Ohio Civil Rights Commission, Stark County and several former residents and property managers;
• $175,000 in damages to 11 additional former residents and employees identified by the United States who had been harmed by the defendants’ discrimination; and
• $25,000 in a civil penalty to the United States.

“It is a sad fact that decades after the passage of the Fair Housing Act, many people still face unlawful discrimination when looking for housing,” said Molly Moran, Acting Assistant Attorney General for the Civil Rights Division.  “The magnitude of this settlement makes clear that the Department of Justice will vigorously pursue violations of the Fair Housing Act.”

“The freedom of every family to live where they wish, without regard to their race or if they have kids, is basic to who we are in this country,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio.  “When landlords deny that basic right, there will be consequences.  We will continue to work hard to ensure that this fundamental right is protected in Ohio and across the nation.”

The settlement also requires that the defendants hire an independent management company to manage all of their rental properties, receive training on the requirements of the Fair Housing Act and report to the department for a period of three years on their compliance with the settlement.  The settlement also requires the defendants to hire a third party to periodically test their properties to ensure compliance with the Fair Housing Act. 

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 can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at fairhousing@usdoj.gov, 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.   

Three Cleveland men were sentenced to prison for their roles in an armed robbery of a Euclid bank, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.

Shawn Caldwell, 22, was sentenced to more than 24 years in prison. Julian Anderson, 23, was sentenced to more than 11 years in prison. Dejuan Brown, 24, was sentenced to more than 10 years in prison.

The men aided and abetted one another in robbing a PNC Bank in Euclid, Ohio, on January 24, 2014. They stole approximately $39,900 from the bank and that they carried and brandished firearms during the robbery.

A fourth defendant, Germain D. Davis, Jr., 20, will be sentenced next week.

The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump and Michelle M. Baeppler following an investigation by the Federal Bureau of Investigation and the Euclid Police Department.

A 16-count indictment was unsealed in federal court charging a Westlake cardiologist with performing unnecessary catheterizations, tests, stent insertions and causing unnecessary coronary artery bypass surgeries as part of a scheme to overbill Medicare and other insurers by $7.2 million, law enforcement officials said.

Dr. Harold Persaud, 55, was indicted on one count of health care fraud, 14 counts of making false statements and one count of engaging in monetary transactions in property derived from criminal activity.

The indictment was announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office, and Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region.

“The charges in this case are deeply troubling,” U.S. Attorney Dettelbach said. “Inflating Medicare billings alone would be bad enough. Falsifying cardiac care records, making an unnecessary referral for open heart surgery and performing needless and sometimes invasive heart tests and procedures is inconsistent with not only federal law but a doctor’s basic duty to his patients.” 

“This doctor violated the sacred trust between doctor and patient by ordering unnecessary tests, procedures and surgeries to line his pockets,” Special Agent Anthony said. “He ripped off taxpayers and put patients’ lives at risk.”

“Medical providers have a duty and obligation to provide only those services that are medically necessary and are in the best interests of the patients under their care,” Special Agent in Charge Pugh said. “The conduct alleged in this indictment outlines a disregard for patient needs in exchange for financial gain at taxpayer expense. The OIG will continue to work with our law enforcement and prosecutorial partners to identify fraudulent health care schemes and hold individuals accountable for their actions.” 

Persaud had a private medical practice at 29099 Health Campus Drive in Westlake and had hospital privileges at Fairview Hospital, St. John’s Medical Center and Southwest General Hospital, according to the indictment.

Persaud devised a scheme to defraud and obtain money from Medicare and other insurers. The scheme took place between Feb. 16, 2006, through June 28, 2012, according to the indictment.

According to the indictment, his activities in furtherance of the scheme included but were not limited to:

• Persaud selected the billing code for each customer submitted to Medicare and private insurers, and used codes that reflected a service that was more costly than that which was actually performed;
• Persaud performed nuclear stress tests on patients that were not medically necessary;
• He knowingly recorded false results of patients’ nuclear stress tests to justify cardiac catheterization procedures that were not medically necessary;
• Persaud performed cardiac catheterizations on patients at the hospitals and falsely recorded the existence and extent of lesions (blockage) observed during the procedures;
• He recorded false symptoms in patient records to justify testing and procedures on patients;
• Persaud inserted cardiac stents in patients who did not have 70 percent or more blockage in the vessel that he stented and who did not have symptoms of blockage;
• He placed a stent in a stenosed artery that already had a functioning bypass, thus providing no medical benefit and increasing the risk of harm to the patient;
• He improperly referred patients for coronary artery bypass surgery when there was no medical necessity for such surgery, which benefitted Persaud by increasing the amount of follow-up testing he could perform and bill to Medicare and private insurers;
• Persaud performed medically unnecessary stent procedures, aortograms, renal angiograms and other procedures and tests.

As a result of this scheme, Persaud overbilled and caused the overbilling of Medicare and private insurers in the amount of approximately $7.2 million, of which Medicare and the private insurers paid approximately $1.5 million, according to the indictment.

The indictment seeks to forfeit $93,446 in an account in the name of Harold Persaud and $250,188 in an account in the name of Roberta Persaud.

This case is being prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Chelsea Rice following an investigation by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services – 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.

Twenty-six people were indicted for their roles in a conspiracy to bring large amounts of heroin, cocaine and marijuana to Toledo from Arizona, California, Illinois and Mexico, law enforcement officials said.

The 55-count federal indictment was announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, Toledo Police Chief William Moton and Lucas County Sheriff John Tharp.

“Heroin abuse is an epidemic in our community that takes lives and destroys families,” Dettelbach said. “We will continue to target drug traffickers while also working to reduce demand and get treatment for those who need it.”

“This is another example of the international drug trafficking connections that are plaguing our communities with danger and heroin,” Anthony said. “The FBI will continue collaborative law enforcement efforts to combat these violent organizations.”

“Through the working relationship that has been developed between the Toledo Police Metro Drug Task Force and the Federal Bureau of Investigation we have become more efficient in targeting the mid- and upper-level heroin dealers in Toledo and surrounding communities,” said Toledo Police Chief William Moton.  “These arrests are a byproduct of this successful collaboration. The City of Toledo and surrounding areas are the benefactors of these efforts as the spread of heroin has the potential to deteriorate the standard of living in our community.” 

Those indicted are from Toledo unless otherwise noted. They are: Alejandro Garcia, 44; Regina Navarro, 36; Osvaldo Perez, 60; Sean Machaterre, 31; Dicki Isom, 33; Federico Perez, 25; Daryl Mickles, Jr., 31; Keith Hubbell, 30; David Berrera, Jr., 40; Santos Flores, 34, of Oregon, Ohio; Juan Montano, 35; Daniel Montano, 26; Yousvani Gacita, 34; Davi Mata, 32; Willie Edward Smith, 38; Juan Rivera, 34; Paulo Gonzalez, 27; Abdul Shabazz, 39; Davalon Brown, 28; James Munoz, 37; Victoria Santellana, 31; Daniel Barboza, 38; Anthony Rudess, 42, of Curtice, Ohio; Eric Mays-Clausen, 41; Randolph Kemp, 53, and Jacqueline Jaquez, 40.

The defendants conspired between 2010 and this month to bring large shipments of heroin, cocaine and marijuana to Toledo for distribution. Garcia obtained the drugs from suppliers in Arizona, California, Illinois and Mexico and then distributed the drugs to mid-level dealers in the Toledo area. Those dealers, in turn, distributed the drugs to other dealers, according to the indictment.

The indictment details scores of transactions and drug sales that took place in Toledo, including locations at Ravine Park Village, Graham Street, Berry Street, North Ontario Street, Bronson Street, Sylvania Avenue, Westfield Park Mall, Main Street, Starr Avenue, Heatherdowns Road and other locations.

Three people – Garcia, Kemp and Isom – face additional charges of being felons in possession of firearms.
Prosecutors are also seeking to forfeit more than $6,800 in cash, six firearms, nine automobiles and homes at 1509 Navarre Avenue and 625 Parker Avenue in Toledo.

This indictment is the result of an investigation by the FBI and the Metro Drug Task Force, made up of members of the Toledo Police Department and the Lucas County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Thomas P. Weldon and Michael Freeman.

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

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

Two men were indicted on charges they defrauded approximately 60 people out of more than $6.5 million through a fraudulent Arizona real-estate development investment, law enforcement officials said.

Stanley M. Paulic, 41, of Aurora, Ohio, and Steven R. Long, 45 of Mather, California, each face one count of conspiracy to commit mail fraud and wire fraud and one count of wire fraud.

“These individuals ripped off dozens of people, stealing life savings and creating real financial hardships,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.

“These two individuals stole the hard earned money of others for their own greedy benefit,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The FBI and our partners will continue efforts to root out such deceitful perpetrators.” 

Paulic and Long co-founded Integrity Financial AZ, LLC, or IFAZ, which had regional offices near Cleveland, Chicago and Sacramento, California. Beginning around 2008, Paulic served as chief executive officer of the company while Long served as president.

Together, the two conspired to unlawfully enrich themselves through false pretenses, representations and other means to individuals seeking to invest money in a legitimate enterprise and instead converting that money to Paulic and Long’s personal use, according to the indictment.

IFAZ solicited investor funds for the purported development of residential real estate in Tonapah, Arizona. At no time during the periods mentioned in the indictment did Long, Paulic or IFAZ register with the U.S. Securities and Exchange Commission.

Paulic and Long represented to prospective investors and IFAZ owned land and built homes in Arizona. They represented to investors that they rented these homes to individuals who were unable to qualify for standard residential mortgages and then, once those renters improved their credit scores, IFAZ sold the homes to them at substantial profit, according to the indictment.

They made these representations in a variety of ways: through the IFAZ web site, holding seminars, including one in Beachwood, Ohio, in April 2009, mailing pamphlets to individuals, including a Richmond Heights resident in 2008, and buying advertisements, such as one purchased in a newspaper in Cleveland in 2009, according to the indictment.

Paulic, Long and IFAZ promised investors they would earn rates of return between 10 and 20 percent, with returns being distributed monthly. Investors were also told their investment would be secured by a deed of trust for a property in Arizona, and that not more than one deed would be associated with each parcel, according to the indictment.

In reality, Long recorded multiple deeds on single parcels and monthly payments made to investors came, at least in part, from other investor funds, according to the indictment.

Paulic and Long used IFAZ investment funds to pay for personal expenditures and expenditures of non-IFAZ corporate entities. For example, from March 2008 to August 2009, Paulic received approximately $586,225 in wire transfers from IFAZ, according to the indictment.

Overall, approximately 60 people invested approximately $8.1 million in IFAZ. Approximately $1.6 million was returned to investors, resulting in a loss to investors of approximately $6.5 million, according to the indictment.

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

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 two-count indictment charging a North Ridgeville woman and an Arizona man with using the U.S. mail to distribute methamphetamine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Indicted are Robert Havers, 49, and Patricia Ann Quinn, 43.

On July 24, 2014, Havers mailed approximately one pound of methamphetamine in the U.S. Mail from Phoenix, Arizona, to Quinn in North Ridgeville, Ohio.  On July 25, 2014, U.S. Postal Inspectors delivered the package, which Quinn accepted and opened, according to the indictment.

This case is being prosecuted by Assistant United States Attorney Margaret A. Sweeney following an investigation by the United States Postal Inspection Service.

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

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

Larun E. Miller, 45, of Mentor, was charged with enticement and failure to register as a sex offender, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges that from on or about May 28, 2014, through on or about June 2, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Miller did knowingly use facilities and means of interstate and foreign commerce, that is, a cellular phone with Internet connectivity, to attempt to persuade, induce, entice and coerce an individual who had not attained the age of 18 years, that is, a 14-year-old girl to engage in illegal sexual activity with him. 

The indictment also charges that from on or about October 1, 2013, through on or about June 3, 2014, in the Northern District of Ohio, Eastern Division, the defendant, Miller, a sex offender as defined for the purposes of the Sex Offender Registration and Notification Act, as a result of being convicted under Federal law, on October 28, 2005, of travel with intent to engage in illicit sexual conduct, in Case No. 5:05CR300, in the Northern District of Ohio, did knowingly fail to register and update registration as required by the Sex Offender Registration and Notification Act. 

Lastly, the indictment charges that from on or about May 28, 2014, through on or about June 2, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Miller, being required by federal law to register as a sex offender, committed a felony offense involving a minor under Title 18, United States Code, Section 2422(b), to wit: the felony offense charged in count one of the indictment.

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 United States Marshals Service and the Jefferson County (Colorado) District Attorney’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.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that Ryan P. Collins, a 31 year-old male from Dalton, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.

The indictment charges that from on or about November 17, 2012, through on or about February 19, 2013, Collins 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 February 28, 2013, Collins 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 seven-count federal indictment was returned charging a Concord Township man defrauding Taupa Lithuanian Credit Union out of $2.3 million, law enforcement officials said.

John Struna, 51, was indicted on one count of conspiracy to commit bank fraud, one count of bank fraud, one count of making false statements and four counts of money laundering.

The indictment was announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, and Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service – Criminal Investigations.

“Most people learn early in life that there is no such thing as free money,” Dettelbach said. “This defendant is charged as part of a group that used others' hard earned savings as a personal piggy bank. Mr. Struna’s greed has caught up with him with this indictment.”

“John Struna willfully overdrew his credit union accounts to the tune of $2.3 million through his relationship with a corrupt executive at the credit union,” Anthony said.

“Fraud schemes harm everyone, especially those where someone, for their own personal benefit, has taken what belonged to others,” Enstrom said. “IRS Criminal Investigation is committed to unraveling financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money.”

The National Credit Union Administration and the Ohio Department of Commerce took possession of Taupa last year and placed it into receivership due to its insolvency. Taupa, based in Cleveland, had about 1,150 members and assets of approximately $24 million, according to court records.

Credit union CEO Alex Spirikaitis, former teller Michael Ruksenas and Vytas Apanavicius have previously been found guilty for their roles in conspiracies related to defrauding the credit union.

Struna maintained both personal and corporate accounts at Taupa dating back to 1995.  He began a conspiracy with Spirikaitis in 2002 and continued through 2013, during which time Spirikaitis caused Taupa to make approximately 46 fraudulent transfers into Struna’s accounts, according to the indictment.

In 2011, Struna requested and received $112,105 from Spirikaitis for the purchase of a condominium located in Ft. Myers, Florida. At no time did Struna submit any credit applications or loan documents, according to the indictment.

The fraudulent transfers totaled approximately $2.3 million. From 2002 through 2013, Struna repaid only approximately $15,000 of the $2.3 million Spirikaitis transferred into his accounts, according to the indictment.

The indictment also seeks to forfeit a 2014 Jeep Wrangler Unlimited, a 2014 Mazda 6 and the lost money.

This case is being prosecuted by Assistant United States Attorney Robert J. Patton and Special Assistant United States Attorney Derek Kleinmann. The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.

If convicted, the defendant’s sentence 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.

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.

Shane C. Albert, 23, of Canton, Ohio, was charged with receiving, distributing 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 May 1, 2012, through on or about March 7, 2013, Albert 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 May 1, 2013, Albert possessed a computer that contained child pornography.

If convicted, the sentence 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.

An information was filed in U.S. District Court today charging the former office manager of a Cleveland law firm with embezzling approximately $200,000 from the firm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Kelly R. Logan, age 42, of Seven Hills, Ohio, is charged in the one-count information. The information alleges that from February 2002 to November 2013, Logan forged approximately 111 checks drawn on accounts maintained by the law firm, and made them payable to her.  In addition, Logan made false entries in the books of the law firm to conceal her embezzlement. 

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

The case is being prosecuted by Assistant United States Attorney Ann C. Rowland following an investigation by the Federal Bureau of Investigation.

A Mayfield Village rheumatologist was sentenced to probation for importing medications that had not been approved by the Federal Drug Administration, said Steven M. Dettelbach,United States Attorney for the Northern District of Ohio.

Dr. David Mandel, 65, has paid more than $650,000 in restitution. He previously pleaded guilty to causing the shipment of misbranded drugs, a misdemeanor violation of the Food, Drug and Cosmetic Act.

“FDA’s regulatory standards are designed to ensure the safety and quality of the medical devices and drugs distributed to American consumers,” said Antoinette V. Henry, Special Agent in Charge, FDA’s Office of Criminal Investigations, Washington Field Office. “We will continue to work to investigate all persons, including medical professionals, who disregard regulatory requirements and jeopardize the public health by participating in the distribution of misbranded products.”

“Acquiring and prescribing prescription medications that have not met regulatory standards puts the safety and well-being of patients at risk,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General –Chicago Region. “The OIG will continue to work with our law enforcement partners to ensure that medical professionals who choose to evade these standards are held accountable.”

Dr. Mandel obtained Boniva, Aclasta, Prolia, Euflexa and Orthovisc, from outside the United States, where the drugs are not approved by the FDA, according to court documents.

A drug may be considered misbranded even if it is identical in composition to an FDA-approved drug (that is, a drug labeled and packaged in compliance with the FDA’s standards) and even if it was made by the same manufacturer in the same facility as the FDA-approved version.

The case was prosecuted by Assistant U.S. Attorney Michael L. Collyer following investigations by the FDA – Office of Criminal Investigations and the Department of Health and Human Services – Office of Inspector General.

Anyone suspecting health care fraud, waste or abuse can report it by calling the U.S. Department of Health and Human Services, Office of Inspector General at800-447-8477.To learn more about healthcare fraud prevention and enforcement go towww.stopmedicarefraud.gov

The Justice Department announced today that the manager and owner of the Linden House Apartments in Cleveland have agreed to pay $100,000 to resolve allegations that they refused to rent to individuals because the individuals had children.  The settlement must still be approved by U.S. District Judge Solomon Oliver Jr.

The settlement resolves a lawsuit filed by the Justice Department on September 30, 2013, against the Zaremba Management Company, the Linden Apartment Company and a property manager who worked at the Linden House Apartments.  The United States alleged that the defendants violated the Fair Housing Act by maintaining a policy of refusing to rent units at Linden House to families with children.  It also alleged that the Linden House Apartments had a policy of evicting tenants or asking tenants to relocate if they had children while living at Linden House.  While the Fair Housing Act does allow housing that is reserved for older persons to limit residency to adults under certain circumstances, Linden House did not meet the requirements for this exemption. 

The settlement requires the defendants to pay $90,000 to victims of their discriminatory actions, and to pay $10,000 in civil penalties to the United States.  The settlement also requires the defendants to remove any restrictions on occupancy by families with children at the Linden House Apartments and to take certain steps such as training employees and reporting to the Department of Justice to make sure that such discriminatory policies are not implemented in the future. 

“Finding decent, safe and affordable housing is critical for working families,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.  “Such families should not be turned away from housing merely because they have children.”  

“Families deserve the legal right to live where they can, and the Justice Department will continue to protect them from housing discrimination,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio.

Fighting illegal discrimination in housing is a top priority of the Justice Department.  The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.  More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.  Individuals who believe that they have been victims of housing discrimination or have information related to this lawsuit can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at fairhousing@usdoj.gov or contact the Department of Housing and Urban Development at 1-800-669-9777.

A Toledo man was charged with one count of theft of government property, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Richard Arens, II, age 38, withdrew approximately $93,373 for his personal benefit from the bank account of his deceased mother between December 2007 through August 2013, according to the information.          

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

The investigating agency in this case is the Social Security Administration Office of Inspector General.  The case is being handled by Assistant United States Attorney Ava Dustin. 

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

A federal grand jury returned an eight-count superseding indictment charging Sergei Davidoff, aka Sergiu Davidov, aka Sammy Davidoff, aka Sergio Da Vido, age 53 and a native of Siberia, Russia, with multiple counts of identity theft, fraudulent use of credit cards and identification documents, counterfeiting Social Security cards, and aggravated identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The superseding indictment alleges that Davidoff possessed devices and programs used to create false identification documents.  Davidoff also acquired and produced numerous false identification documents and counterfeit or unauthorized credit cards, according to the indictment.

Through these unauthorized and counterfeit cards, defendant purchased merchandise and services valued at more than $1,000.  It further alleges that the defendant created counterfeit Social Security cards and committed aggravated identity theft against three individuals between 2009 and 2014 as part of his scheme, according to the indictment.

Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the United States Secret Service, the Ohio State Highway Patrol, and the Medina Police Department.

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.

The former head of a Cleveland-area anti-poverty agency was charged with accepting more than $23,000 in cash, home renovations and other things of value in exchange for steering work to specific contractors, law enforcement officials said.

Jacqueline K. Middleton, 69, of Shaker Heights, was charged in a criminal information with two counts of honest services fraud, one count of bribery in federally funded programs and one count of Hobbs Act Conspiracy.

“We will continue to prosecute cases where the public’s trust is violated with bribes and kickbacks,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

“The FBI has the responsibility of protecting the public by aggressively pursuing and bringing to justice those who place the community at risk,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “Instead of serving the public, she served herself and violated the trust of those she was supposed to serve.”

“As the President and CEO of the CEOGC, Ms. Middleton had the obligation and responsibility to use taxpayer funds to assist low income families of Northern Ohio. Unfortunately she chose to use her position to enrich herself”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG and its law enforcement partners are committed to identifying, investigating and working with prosecutorial authorities to hold individuals accountable who choose breech the public’s trust and deprive needy citizens of vital taxpayer dollars.”

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 Justin J. Roberts, following an investigation by the Federal Bureau of Investigation and the Department of Health and Human Services – 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.

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

A Sheffield Lake man was charged with embezzling approximately $2.9 million from Medical Mutual, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio

Joseph F. Satava, III, age 69, was charged in a criminal information with one count of theft of embezzlement in connection with health case.

Satava embezzled approximately $2.9 million from his employer, Medical Mutual, between August 1997 and November 2013, according to the information.

Satava began working for Medical Mutual in 1971, and held the position of Manager of Credit and Collections for the past 20 years. In this capacity, he had the authority and managerial discretion to request and approve checks in amounts up to $5,000.  During his tenure, Satava discovered a way to use this managerial authority to create reimbursement checks that he could then embezzle, steal, and convert, undetected, to his own personal use, according to the information. 

To accomplish his embezzlement, Satava reviewed weekly printouts of the company’s accounts receivable trial balance statements to identify new companies that had signed contracts for insurance coverage.  The weekly printouts included the amounts submitted by each company as the first payment for the insurance coverage.  These payments were referred to as “binder payments.”  Each binder payment was credited to the finance division’s “Binder Suspense Account.”  At the end of each month, each company payment was then credited to the appropriate client-specific revenue account, according to information.

During most weeks, Satava selected between two and four companies from this printout that made binder payments under $5,000 and created a reimbursement check in the exact amount of each respective customer check submitted to the company.  He caused the reimbursement check to be created by completing a company check reimbursement form.  On the form, Satava listed an employee of the client company as payee, and requested payment in the amount of the company’s binder check.  He stated on the form that insurance coverage had been denied as the reason for the requested reimbursement.

To conceal his embezzlement, Satava did not charge each reimbursement to the Binder Suspense Account.  Instead, he charged the checks to an account that handled several billions of dollars of revenue each year.  As such, the checks created by Satava were immaterial in amount relative to the volume of funds passing through this account, so the checks were not detected.  Because the reimbursement checks were not charged against the account into which the binder payments were deposited, the coverage for each client company still went into effect, according to the information.

To negotiate the check, Satava forged the name of the payee appearing on the reimbursement check that he used without authorization.  After he forged each check, he countersigned his own name beneath the forged name.  Defendant used ATMs to deposit each check into his own personal bank account to avoid scrutiny from bank officials regarding the third party checks, according to the information.

Satava produced at least 1,382 reimbursement checks that he forged, countersigned, and deposited during his tenure as the manager of credit and collections, according to the information.

Satava used the embezzled funds to pay for living expenses that were otherwise beyond his means, such as furniture and other household items, his adult son’s personal expenses, a car loan, travel and personal vacations and a retirement home on Lake Erie, according to the information.

This case is being prosecuted by Assistant U.S. Attorneys Christos N. Georgalis and James Morford following an investigation by agents of the Federal Bureau of Investigation.

If convicted, the defendant’s sentence will be determined by the dourt after a review of 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.  In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

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

A Youngstown woman was convicted of setting fire to a rental property in order to collect insurance money, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Latasha Curtis, 33, is scheduled to be sentenced Nov. 13. She was convicted on one count of conspiracy, one count of use of fire during the commission of a felony, and one count of maliciously damaging and destroying, and attempting to damage and destroy, by means of fire, real property used in interstate commerce and in activity affecting interstate commerce following a trial before U.S. District Judge Benita Pearson.

Curtis and others conspired to commit arson of a rental property located at 75 Hilton Avenue in Youngstown, and to commit wire fraud in submitting false claims against State Farm Insurance Corporation for the proceeds of an insurance policy on the property, according to court documents.

The property was burned in a fire occurring on October 19, 2013, which was intentionally set by Curtis and others, according to court documents.

State Farm paid $67,916.10 after the insurance claim on the property was submitted, according court documents.

This case was investigated by the Youngstown Resident Agency of the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorneys James V. Moroney and Miranda Dugi.

A Youngstown man was sentenced to 20 years in federal prison for his role in a conspiracy that brought heroin from Chicago and other areas to Youngtown, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.

Alexis Perez, 32, was previously found guilty of conspiracy to possess with intent to distribute heroin and related charges.

“This ring brought heroin in from out of state and sold it on the streets on Youngstown,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “We will continue to do these kinds of exhaustive investigations designed at shutting off the stream of illegal drugs.”

The investigation preceding the indictment was conducted from March 2009 through March 2012 by the FBI Mahoning Valley Violent Crimes Task Force (MVVCTF) and the Mahoning Valley Law Enforcement Task Force (MVLETF). The case was prosecuted by Assistant U.S. Attorneys David M. Toepfer and M. Kendra Klump.

A Detroit man was indicted on 46 counts in federal court related to a scheme in which he stole at least $16,000 worth of merchanside from Lowe's and Home Depot stores in the Cleveland and Toledo areas and then returned the stolen items for store credit, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Larry Darnell Frazier, 56, was indicted on 45 counts of wire fraud and one count of transporting fraudulently obtained property in interstate commerce. 

Frazier placed small, expensive items, including rough plumbing and electrical items, inside large outdoor lighting boxes. He purchased the lighting boxes with the smaller items concealed inside. He went to other stores and returned the lighting, for which he had a receipt, for a refund and the stolen items, for which he did not have a receipt, for store credit, according to the indictment.

Frazier did this at stores in Toledo, Perryburg, Fairlawn, Strongsville, Streetsboro, Elyria, Rocky River, Avon, Lorain, Sandusky, Sylvania, and elsewhere, according to the indictment. He returned stolen merchandise at least 45 times and got more than $16,000 in store credit for the merchandise, according to the information.

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

The investigating agency in this case is the United States Secret Service, Toledo, 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.

A one-count criminal information was filed charging Brent A. Horvath, 25, of Canal Fulton, Ohio, with conspiracy to distribute and possess with the intent to distribute marijuana, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. 

The information alleges that from in or about the winter of 2011 through February 2014, Horvath and others conspired to distribute and possess with the intent to distribute more than 50 kilograms of marijuana.

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

The investigation preceding the information was conducted by the Drug Enforcement Administration.  The case is being prosecuted by Assistant United States Attorney Samuel A. Yannucci. 

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

A five-count indictment was filed in federal court charging the owner of a Sandusky winery with crimes related to the securing and repayment of loans for the winery, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Anthony Mohatt, Acting Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General.

David J. Kraus, 52, of New York, New York, was charged with conversion of property pledged as collateral with a farm credit agency, making numerous false statements, including on a loan application to a federally-insured bank.

“This defendant is charged with defrauding a program designed to help struggling or family farmers by, among other things, unlawfully pocketing millions of dollars from the sale of wine and grapes,” Dettelbach said. “Those who seek federal assistance must follow the rules, whether they are food stamp recipients or want to own a winery. These programs are for the public good, not personal enrichment.”

Kraus was the owner and operator of Kraus Winery, Inc., also known as Kraus Vineyard, Hermes Winery, and Sand Hill Winery, located near Sandusky.

Count 1 of the indictment charges that between January 2006 and November 2012, the defendant knowingly, and with the intent to defraud, disposed of and converted to his own use, or the use of another, property pledged as collateral for loans from the U.S. Department of Agriculture – Farm Service Agency.

Kraus sold and directed the sale of grapes and wine valued at approximately $2 million which had been pledged as collateral for loans totaling $594,870, and failed to remit the proceeds from such sales to the USDA-FSA as required by the terms of the loans, according to the indictment.  

Counts 2 through 4 of the indictment charge that Kraus made various materially false statements and representations to officials at the USDA-FSA in connection with the same loans between December 2009 and September 2010.

For example, Kraus falsely reported to a USDA-FSA farm loan officer that the winery had only received a few small checks for grape sales and had no wine sales in 2009, when, in fact, the winery had grape sales totaling approximately $60,000 and wine sales totaling approximately $271,380 in 2009, according to the indictment.

Count 5 also charges Kraus with making false statements on a loan application submitted to Citizens Bank on or about July 22, 2010, for purposes of influencing the bank’s action in connection with said application.

The case is being prosecuted by Assistant United States Attorneys Robert W. Kern and Angelita C. Bridges following an investigation by the United States Department of Agriculture, Office of Inspector General.

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 Warren man was sentenced to nearly 13 years in prison for illegally selling firearms, heroin and cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Lewis Powell, 37, was sentenced to 155 months in federal prison by U.S. District Judge Donald Nugent. Powell pleaded guilty in April to one count of conspiracy to possess with intent to distribute heroin and cocaine and one count of being an unlicensed dealer willfully engaged in the business of dealing firearms.

"This defendant trafficked in drugs and guns, including some with obliterated serial numbers," Dettelbach said. "This sentence will hopefully make the Mahoning Valley a bit safer."

Powell sold heroin to undercover officers on multiple occassions. He also sold 20 firearms, including three with obliterated serial numbers, according to statements made in court.

This case was prosecuted by Assistant U.S. Attorneys Daniel J. Riedl and David M. Toepfer, following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the TAG Task Force, the Ohio Bureau of Criminal Investigation and Identification, the Warren Police Department, the Trumbull County Sheriff’s Office, the U.S. Marshal’s Service, the Youngstown Police Department and the Ravenna Police Department.

The owner of a Youngstown-based company was sentenced to more than two years in prison for violating the Clean Water Act by dumping fracking waste into a tributary of the Mahoning River, said Steven M. Dettelbach, the United States Attorney for the Northern District of Ohio.

Benedict W. Lupo, 64, of Poland, Ohio, was found guilty earlier this year of one count of making an unpermitted discharge. U.S. District Judge Donald Nugent sentenced Lupo to 28 months in prison and fined him $25,000.

The illegal discharges took place more than 30 times between Nov. 1, 2012 and Jan. 31, 2013, according to court documents.

“Clean air and fresh water is the birthright of every man, woman and child in this state,” Dettelbach said. “Intentionally breaking environmental laws is not the cost of doing business, it's going to cost business owners their freedom.”

“Ben Lupo put his own interests ahead of everyone else’s, and he deserved to face a severe penalty for his actions,” Ohio Attorney General Mike DeWine said. “The recent water crisis in Toledo is a grave reminder of how important it is to protect our waterways. Those who commit crimes against the environment jeopardize the health and safety of Ohioans, and our natural resources and wildlife. They must be held accountable.”

“Discharging pollution into waterways is illegal and endangers human health, wildlife and the environment,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio.  “Oil and gas production must include safe, legal treatment and disposal of drilling byproducts. Today’s sentence reflects EPA’s commitment to protecting our natural resources and the communities that rely upon them.”

“This case highlighted a gap in Ohio law regarding the State’s ability to take strong legal action in response to intentional, egregious violations of clean-water regulations,” said Ohio EPA Director Craig W. Butler. “We are fortunate the U.S. Department of Justice used its legal authority to pursue felony violations.”

According to the indictment and related court documents:

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

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

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

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

The last time an employee emptied some of the waste liquid into the drain was on or about Jan. 31, 2013.

The waste liquid that night included brine and drill cuttings. A sample of the discharge taken that night was black in color and a subsequent analysis showed the presence of several hazardous pollutants, including benzene and toluene.

This case is being prosecuted by Special Assistant U.S. Attorney Brad Beeson following an investigation by the Ohio EPA, Ohio Department of Natural Resources, U.S. EPA, the Ohio Bureau of Criminal Investigation, the Youngstown Department of Public Works and the Youngstown Fire Department.

A 40-count indictment was filed in U.S. District Court charging 15 people for their roles in a conspiracy that brought heroin from Chicago to be sold around Ravenna and Akron, law enforcement officials announced today.

An additional 18 people were indicted in the Portage County Court of Common Pleas on related state charges including trafficking in heroin, trafficking in cocaine, trafficking in marijuana, illegal manufacture of methamphetamine, permitting drug abuse and child endangering.

The arrests and indictments were announced by U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach, Portage County Prosecutor Vic Vigluicci, FBI Special Agent in Charge Stephen D. Anthony, ATF Special Agent in Charge Michael Boxler, Akron Police Chief James Nice, Portage County Sheriff David Doak and Summit County Sheriff Steve Barry.

All 15 people indicted in federal court face a charge of conspiracy to possess with intent to distribute heroin. Additional counts include distribution of heroin, maintaining houses as drug premises, possession of firearms during drug trafficking crimes, being a felon in possession of firearms and ammunition, possession with intent to distribute cocaine and related charges.

Those indicted in federal court are:

Rashid L. Carter, 29, of Akron; Andre G. White, 36, of Streetsboro; Laverne Eugene Fortson, 40, of Akron; Andre S. Brumley, 29, of Akron; Hershell D. Hill, 31, of Ravenna; Jasmine M.A. Sanders, 22, of Massillon; Chanda E. Wilson, 44, of Chicago; Shem S. White, 31, of Akron; Jessica L. Money, 37, of Akron; Austin Marshall, 31, of Stow; Algyn M. Kerney, 33, of Akron; Walter Collins III, 41, of Ravenna; Michelle L. Spencer, 32, of Akron; Marvin R. Sanders, 26, of Kent, and Keith E. Krause, 32, of Kent.

“Heroin abuse is an epidemic in our community that takes lives and destroys families,” Dettelbach said. “We will continue to target drug traffickers while also working to reduce demand and get treatment for those who need it.”

“These individuals collaborated to deliver poison to our streets and we collaborated to bring them to jail,” Anthony said. “This takedown is another outstanding example of what can be accomplished when local, state and federal agencies work together to protect our community.”

“This is an example of our working relationships with other law enforcement in the community to attack our most serious problem,” Nice said.

“It is important that we coordinate our efforts if we are to make a dent in this flood of heroin which these criminals are bringing into our counties,” Vigluicci said.

“ATF's mission is to identify, pursue, and perfect criminal cases against individuals who illegally possess and use firearms in furtherance of their criminal activities,” said ATF Special Agent in Charge Michael Boxler.  “We will continue to work with the FBI, the U.S. Marshals Service, the Akron Police Department’s Drug Unit, the Portage County Sheriff’s Office Drug Unit and others to ensure that those who foster violence in this region are held to account for their activities.”

“This operation is an example of the proactive/zero-tolerance approach we are taking in response to the heroin epidemic,” Barry said. “It is crucial to shut down the dealers and get the heroin off of our streets.”

According to the federal indictment:

The conspiracy took place from as early as September 2013 and continuing through July 2014. During that time, Andre G. White supplied heroin to Laverne Eugene Fortson and Rashid L. Carter.  In turn, Fortson and Carter provided heroin to Andre T. Brumley for distribution in and around Akron and Ravenna.

Carter also purchased heroin from a supplier in the Chicago area for distribution in and around Akron. He and Fortson supplied heroin to several dealers in Akron, some of whom in turn distributed the drug to other dealers.

Carter, Jasmine M.A. Sanders and Chanda E. Wilson transported heroin from Chicago to Akron and drug proceeds back to Chicago from Ohio. Fortson and Algyn M. Kerney provided cash to facilitate these Chicago drug transactions. 

Walter Collins, III, and others facilitated heroin transactions for Fortson by, among other things, acting as couriers.

White, Fortson, Carter and Brumley owned and rented properties that they used to store, process, and distribute heroin. Those properties were on Belden Avenue, Greenwood Avenue and Waterloo Road in Akron.

It was further part of the conspiracy that White, Fortson, Carter, Shem S. White and Hershell D. Hill possessed firearms to protect themselves and their drug proceeds.

Carter illegally possessed a Firestar, .45-caliber pistol,  a Taurus, model 85, .38 special revolver  and ammunition on June 6, 2014, despite previous convictions for possession of cocaine in Portage County and failure to comply with a police officer in Summit County.

Fortson illegally possessed a Harrington and Richardson 16-gauge shotgun and ammunition on June 18, 2014, despite a previous conviction for aggravated trafficking in Portage County.

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.

This investigation was conducted by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Summit County Drug Unit, the Akron Police Department and the Portage County Drug Unit, with assistance from the U.S. Marshal’s Service, the Ohio State Highway Patrol and the Portage County Prosecutor’s Office.  The matter is being prosecuted by Assistant U.S. Attorneys David M. Toepfer and M. Kendra Klump.

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

A criminal information was filed in U.S. District Court charging the former director of the Cleveland Clinic Foundation Nursing Anesthesiology School with embezzling $215,760.07 from the school, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Paul Blakeley, age 58, of Concord Township, Ohio, is charged in the one-count information. The information alleges that from approximately January 2007 to approximately April 2013, the defendant issued approximately 110 checks drawn on accounts maintained by the school without authorization, and made them payable to his spouse, various merchants and credit card issuers. 

In addition, with regard to approximately 50 of the unauthorized checks, the defendant forged the payee’s endorsement before depositing the checks into his personal bank account, according to the information.

As a result of the scheme, the school suffered losses totaling $215,760.

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

The case is being prosecuted by Assistant United States Attorneys Robert W. Kern and Miranda Dugi following an investigation by the Cleveland Clinic Protective Operations and the United States Secret Service.

An Atlanta-area woman was charged in a two-count criminal information for operating a $4.8 million fraud conspiracy involving nearly 1,000 people who resided in Northeast Ohio, said Steven M. Dettelbach and Kathy Enstrom, IRS-Criminal Investigation Special Agent in Charge.

Zinara M. Highsmith, 35, of Fayetteville, Georgia, was charged with one count of conspiracy to commit wire fraud and one count of wire fraud. She is accused of filing approximately 2,750 false tax returns containing false refund claims of more than $4.8 million.

Approximately 964 false claims were made on behalf of people living in Northeast Ohio, resulting in false claims of nearly $1.7 million, according to the information.

“This defendant took advantage of programs designed to give people a hand up and instead used them to make herself rich,” Dettelbach said.

“The American tax system is designed to provide vital government services to our people.  It is not a slush fund for thieves and fraudsters,” Enstrom said.  “IRS will vigorously pursue those who illegally target our nation’s tax dollars for personal financial gain.”

Highsmith formed the Atlanta-based tax-preparation business WE XL LLC in 2010. From March 2011 through July 2011, Highsmith partnered with a minister in Arkansas – identified in the charges only as Minister ADM – in a scheme to file false tax returns.

Minister ADM’s role in the scheme was to recruit and obtain personal identification information from claimants and to provide that information to Highsmith, who was responsible for the preparation of the false returns. Minister ADM did this in large part by inducing other ministers and church leaders in various states, including Ohio, to solicit members of their congregations to apply for benefits under the so-called government stimulus program, according to the information.

Some of the claimants were residents of Northeast Ohio who provided their personal identification information to a pastor in Canton, Ohio, and to a relative of the Canton pastor. They, in turn, forwarded the information to Minister ADM, according to the information.

As instructed by Minister ADM, the claimants were told they could receive their “stimulus” payment by direct deposit or on a debit card. ADM told pastors to request a $50 “donation” from each claimant, according to the information.

ADM, in turn, forwarded the claimants’ personal identification information to Highsmith to use in preparing false tax returns. Highsmith never had any contact with a claimant or any of the other pastors used by ADM to recruit or enlist claimants, according to the information.

Highsmith instructed associates how to prepare false income tax returns using Turbo Tax software, which they did by reporting false occupations and wage income, and by falsely claiming a variety of tax credits, including the AOC Education Credit, the Making Work Pay Credit and the Earned Income Credit, according to the information.

All of the returns requested that $125 be deposited into a bank account controlled by ADM and $275 be deposited into a bank account controlled by Highsmith, according to the information.

Based on the false claims, the IRS issued refunds totaling more than $3.9 million, with more than $500,000 from those refunds going to bank accounts controlled by Highsmith, according to the information.

This case is being prosecuted by Assistant U.S. Attorney Justin J. Roberts following an investigation by the Internal Revenue Service.

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.

Attorney General Eric Holder announced today that the Justice Department has submitted filings in voting rights cases in Wisconsin and Ohio.  The department’s involvement in these two cases represents its latest steps to enforce the remaining parts of the Voting Rights Act against restrictive state laws, following up on the department’s lawsuits last year against similar measures in Texas and North Carolina.

In the Wisconsin case, the department filed an amicus brief in Frank v. Walker and LULAC v. Deininger, supporting an earlier ruling by the U.S. District Court for the Eastern District of Wisconsin that struck down Wisconsin’s strict photo voter identification requirement due to its effects on minority voters under Section 2 of the Voting Rights Act , and because it unduly burdens a substantial number of voters in violation of the Fourteenth Amendment.  In the Ohio case, the department filed a statement of interest in NAACP v. Husted, a challenge by a civil rights group to a state law curtailing early voting and same day registration.  The  department’s brief contests the state of Ohio’s incorrect interpretation of the standards set forth by Section 2 of the Voting Rights Act.

“These filings are necessary to confront the pernicious measures in Wisconsin and Ohio that would impose significant barriers to the most basic right of our democracy,” said Attorney General Eric Holder.  “These two states’ voting laws represent the latest, misguided attempts to fix a system that isn’t broken.  These restrictive state laws threaten access to the ballot box.  The Justice Department will never shrink from our responsibility to protect the voting rights of every eligible American.  And we will keep using every available tool at our disposal to guard against all forms of discrimination, to prevent voter disenfranchisement, and to secure the rights of every citizen.”

In the amicus brief filed today in the U.S. Court of Appeals for the Seventh Circuit, the department argues that the district court reached the correct decision by finding that Wisconsin’s voter ID law, known as Act 23, violated the Fourteenth Amendment, because it imposes unjustified burdens on a significant number of voters, and violated Section 2 of the Voting Rights Act, because it has a discriminatory result on African-American and Hispanic voters.  In addition to finding that Act 23 would result in minority voters having less opportunity to participate in the political process relative to other members of the electorate, the court found that the state’s claimed interests in combating voter fraud and promoting electoral confidence did not justify the significant burdens Act 23 imposes on substantial numbers of voters who lack a qualifying ID.

In the statement of interest filed today in U.S. District Court for the Southern District of Ohio, the department makes clear that Section 2 prohibits the state of Ohio from imposing any voting qualification, prerequisite to voting, or any standard, practice or procedure that would result in the denial or abridgement of the right to vote on account of a person’s race, color or membership in a language minority group.  The filing also makes clear that in its own filings in the case the state of Ohio has incorrectly interpreted its requirements under Section 2.  The department did not take a position on any of the other claims in the case.

“The United States Department of Justice today affirms its clear position that, under Wisconsin’s Act 23, minority voters have less opportunity to participate in the political process,” said James L. Santelle, United States Attorney for the Eastern District of Wisconsin.  “The amicus brief that we are filing not only supports the trial court’s findings but also reflects the department’s continuing focus on ensuring that the franchise remains fully available to all qualified voters.”

“Wisconsin's proud history is one of expanding the opportunity to vote,” said John W. Vaudreuil, United States Attorney for the Western District of Wisconsin.  “I'm honored to file this brief with the United States Department of Justice seeking to ensure that this great Wisconsin tradition is reaffirmed, and that every Wisconsin citizen has an equal opportunity to participate in democracy.”  

“This office remains committed to preserving the rights of every Ohio voter,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.  “Making sure that courts continue to carefully examine voting restrictions, such as the ones recently imposed in this state, is an important part of that effort.”

In the year since the Supreme Court struck down the coverage formula that determined which jurisdictions were subject to preclearance underthe Voting Rights Act in Shelby v. Holder, Section 2 of the Voting Rights Act remains one of the department’s most powerful tools to protect voting rights.  Last year the department used Section 2 to file two lawsuits against the state of Texas to stop the newly enacted discriminatory voter ID law and and to obtain a ruling that the state engaged in intentional discrimination in adopting its 2011 redistricting plans.  In North Carolina, the department used Section 2 to sue to stop a number of provisions in an election law that imposes strict voter ID requirements, restricts early voting, eliminates same-day registration and refuses to count otherwise valid provisional ballots cast in the wrong precinct.  The suit alleges that the challenged law was motivated by a racially discriminatory purpose and will result in African-American voters having less opportunity than other citizens to participate in the political process.  All three cases are ongoing.

A Mentor man was indicted for marketing and selling at least $220,000 worth of suntan and/or erectile dysfunction drugs that were not approved by the Food and Drug Administration, said Steven M. Dettelbach, United States Attorney for the Northern District.

Timothy J. Parr, 31, was indicted in federal court on one count to distributing misbranded drugs.

“These regulations are mandated to ensure drugs made available to the public are safe and have been properly tested,” Dettelbach said. “This defendant ignored those regulations in an effort to make money.”

“Today’s announcement demonstrates the continued commitment of FDA's Office of Criminal Investigations to aggressively pursue those who distribute unapproved and misbranded drugs,” said Special Agent in Charge Antoinette V. Henry of FDA’s Office of Criminal Investigations.  “We will remain vigilant in our efforts to protect consumers from these potentially dangerous products.”

Parr formed U.S. Lab Research, Inc., and later, U.S. Lab Exports, Inc., which he operated from his home. The businesses existed to market and sell drugs over the Internet which had not been approved by the FDA, according to the indictment.

Parr, through U.S. Lab Research, Inc., and later, U.S. Lab Exports, Inc., sold injectable peptide drug products and injection aids to consumers over various web sites. These products included Melanotan I, Melanotan II and Bremalanotide, which were unapproved injectable drugs.  Melanotan I and Melanotan II were marketed as producing the equivalent of a sun tan while Bremalanotide was known to cause erections in male subjects, according to the indictment.

From 2008 through December 2010, Parr sold approximately $220,000 in misbranded drugs, according to the indictment.

Parr, through his companies, marketed the drugs as “for research only” and “not for human use,” which he did to avoid FDA scrutiny.” He also labeled containers as “sun screen” to avoid scrutiny, according to the indictment.

This case is being prosecuted by Assistant U.S. Attorney James V. Moroney following an investigation by the FDA’s Office of Criminal Investigations.

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

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

A Cleveland man was sentenced to more than 24 years in prison for  robbing a bank in Euclid, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland FBI.

Shawn Caldwell, 22, was found guilty of one count of armed bank robbery and one count of using and carrying a firearm during and in relation to a crime of violence. He was sentenced to 292 months in federal prison today.

Germain D. Davis, Jr., 20, Julian Anderson, 23, and Dejuan Brown, 24, all of Cleveland, have each been found guilty of crimes related to the robbery and are scheduled to be sentenced in August.

The four men aided and abetted one another in robbing a PNC Bank in Euclid, Ohio, on January 24, 2014. The robbers stole approximately $39,900 from the bank and carried and brandished firearms during the robbery. 

The case is being prosecuted by Assistant U.S. Attorneys M. Kendra Klump and Michelle M. Baeppler following an investigation by the Federal Bureau of Investigation and the Euclid Police Department.

A Cleveland man was indicted in federal court today for illegally having a firearm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Malcolm L. Hoyle, 27, faces one count of being a felon in possession of a firearm and ammunition.

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

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

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, 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 six-count indictment was filed in federal court today charging two people from Akron for their roles in distributing fentanyl, as well as firearms charges, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Willie Brantley, 28, and Kelsey Zastudil, 21, were both indicted on charges of conspiracy to possess with intent to distribute fentanyl, possession of fentanyl, maintaining a drug premises, and prohibited persons being in possession of a firearm.

Brantley obtained fentanyl in May 2014 and distributed it with Zastudil’s permission from a location on Sweitzer Avenue in Akron, according to the indictment.

On May 28, Brantley and Zastudil were found to have a Cobra .38 special Derringer and ammunition, despite Brantley having been previously convicted of trafficking in cocaine and marijuana in Summit County Common Pleas Court, and Zastudil being under indictment in Summit County on charges of theft of drugs.

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 matter is being prosecuted by Assistant United States Attorney Teresa L. Riley following an investigation by the Akron Police Department Narcotics and Street Narcotics Uniformed Detail and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

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.

William D. Emery, 28, of Sheffield Village, Ohio, was sentenced to five years in prison for , 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.

Emery pleaded guilty this year to one count of receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.

Emery in 2012 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.

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 Ashland, Ohio, woman was sentenced to 32 years in prison for holding a woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor for them, 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.

Jessica L. Hunt, 32, was sentenced to 32 years in prison by U.S. District Judge Benita Pearson. Jordie L. Callahan, 28, was sentenced to 30 years in prison by Judge Pearson earlier this week.

Hunt and Callahan convicted in March following a three-week trial on one count each of conspiracy to violate laws; forced labor and acquiring a controlled substance by deception.

“Labor trafficking cases are significant, and in this case the conduct was reprehensible," Dettelbach said. "People need to understand that exploiting vulnerable people for their own greed is going to lead them to a jail cell. We remain humbled by the strength and dignity of the victims in this case.”

“Today’s sentence is another individual served a dose of justice for subjecting two others to years of inhumane treatment,” Special Agent in Charge Anthony said.

Daniel J. Brown, 35, and Dezerah L. McGuire (formerly Silsby), 33, also of Ashland, both previously pleaded guilty to related crimes are serving sentences in federal prison. Brown was sentenced to five years in prison and McGuire was sentenced to nearly four years in prison.

Callahan and Hunt used a combination of violence, threats, sexual assaults, humiliation, deprivation and monitoring to establish and continue a pattern of domination and control over their victims, identified only as S.E. and B.E., according to the court documents and trial testimony.

Their tactics included beating S.E., threating to beat to S.E. and B.E., taunting and threatening the victims with pit bulls and snakes, causing the victims to sleep in unsafe and unsanitary conditions, restricting B.E. and S.E.’s access to the bathroom, preventing them from eating regular and suitable meals and forcing S.E. to eat dog food and crawl on the floor while wearing a dog collar, according to the court documents and trial testimony.

According to court documents and trail testimony:

Callahan pointed a firearm at S.E.’s head and threatened to kill her if she did not perform the labor and services he and other conspirators commanded. Callahan also forced S.E. on multiple occasions to engage in sex acts with him and threatened that he and Hunt would kill S.E. if she told anyone about the forced sexual acts.

The conspiracy between Callahan, Hunt, McGuire and Brown took place between August 2010 and October 2012. The object of the conspiracy included holding S.E. in a condition of forced labor and involuntary servitude and intentionally causing painful injuries to S.E. so they could use the narcotic pain medications she was prescribed to satisfy their personal drug cravings.

Callahan and Hunt recruited S.E. and B.E. to live with them in their two-bedroom apartment in Ashland, knowing that S.E. suffered a traumatic brain injury that left her with a cognitive disability and that S.E. and B.E. received monthly public assistance payments.

In August 2011, McGuire, at the direction of Callahan and Hunt, smashed S.E.’s hand with a rock with such force that S.E. needed to go to the hospital emergency room. Callahan, Hunt and McGuire then forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated at the emergency room.

In December 2011, Callahan and Hunt injured S.E.’s back with such force that she needed medical treatment. Again, Callahan and Hunt forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated.

In March 2012, Callahan kicked S.E. in the hip with such force that she needed medical treatment. Callahan and Hunt forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated.

On multiple occasions between August 2010 and October 2012, Callahan and Hunt threatened S.E. and B.E. with serious physical harm, including death, if S.E. did not clean up the apartment, care for their numerous pit bull dogs, snakes and other reptiles, purchase items at the store and perform other labor and services ordered by the conspirators.

Callahan and Hunt used a video camera to monitor S.E. and B.E.’s activities and conversations in the apartment. They often forced S.E. to walk to the store to buy groceries, cigarettes, dog food and other items for Callahan, Hunt and Hunt’s four sons and to pay for these purchases with her public assistance card. They allotted S.E. only a brief time period to complete the shopping and warned her she was not allowed to speak with anyone while she was out. They frequently required B.E. to remain with them at the apartment while S.E. was out and threatened physical harm to B.E. and S.E. if S.E. broke any of their rules.

Callahan and Hunt also threatened to contact Ashland County Job and Family Services and have B.E. taken away if S.E. purchased any items at the store other than those they ordered or if she told anyone about their unlawful conduct.

In June 2011, after S.E. and B.E. had attempted to flee the apartment, Callahan and Hunt ordered Brown and McGuire to find S.E. and B.E. and bring them back to the apartment. Brown and McGuire lured S.E. and B.E. into their vehicle by promising to take them to Dairy Queen, only to deposit them afterwards back at the apartment.

On multiple occasions, Callahan and Brown locked S.E. and B.E. in a room with a window that was nailed shut and a door that had been locked from the outside.

In October 2011, Callahan and Hunt forced S.E. to hit her child while they recorded a video, and threatened to inflict much greater physical harm on both S.E. and B.E. if S.E. did not comply.

One month later, Callahan and Hunt again forced S.E. to strike B.E. while they captured a video recording of the staged incident on Callahan’s cell phone. Callahan and Hunt repeatedly threatened have B.E. taken away by showing the videos to authorities in order to secure S.E.’s compliance to the conspirators’ commands.

The case was prosecuted by Assistant U.S. Attorneys Chelsea Rice and Thomas E. Getz following an investigation by the FBI and Ashland Police Department, with assistance from the Ashland County Prosecutor’s Office.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal information has been filed charging David S. Owens aka D. Scott Owens, age 62, of Columbus, Ohio, with one count of failure to account for an pay over employment tax.

Between 2008 and 2009, Owens, through his Canfield, Ohio-based company, Advetech, Inc., made payroll tax withholdings from his employees’ paychecks, but failed to pay over those withholdings to the IRS in the approximate amount of $570,000, according to the information.

Rather, during this period, Owens transferred hundreds of thousands of Advetech, Inc. dollars to at least two other Canfield companies owned and operated by Owens, including Brixton Development Corporation and Preferred Communities, Inc., from where he took hundreds of thousands of dollars in income for himself, according to the information.

The information was filed by Assistant U.S. Attorney Christos N. Georgalis after an investigation by agents of the the Internal Revenue Service and the U.S. Department of Labor, Employee Benefits Security Administration.

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

An information is only a charge and is not evidence of guilt.  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 Ashland, Ohio, man was sentenced to 30 years in prison for holding a woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor for them, 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.

Jordie L. Callahan, 28, and Jessica L. Hunt, 33, were convicted in March following a three-week trial before U.S. District Judge Benita Y. Pearson. Callahan and Hunt were both convicted on one count each of conspiracy to violate laws; forced labor and acquiring a controlled substance by deception.

“Mr. Callahan, through his cruelty, sought to deprive the victims in this case of their dignity and their freedom,” U.S. Attorney Dettelbach said. “He failed in the former, and the victim’s strength ended up trumping his. As for the freedom part – now it is the defendant whose freedom will be taken, for a long time.”

“Hopefully this well-deserved lengthy sentence will provide a sense of justice that will assist the victims in their ongoing healing process,” Special Agent in Charge Anthony said.

Hunt is scheduled to be sentenced by Judge Pearson on July 24.

Daniel J. Brown, 35, and Dezerah L. McGuire (formerly Silsby), 33, also of Ashland, both previously pleaded guilty to related crimes are serving sentences in federal prison. Brown was sentenced to five years in prison and McGuire was sentenced to nearly four years in prison.

Callahan and Hunt used a combination of violence, threats, sexual assaults, humiliation, deprivation and monitoring to establish and continue a pattern of domination and control over their victims, identified only as S.E. and B.E., according to the court documents and trial testimony.

Their tactics included beating S.E., threating to beat to S.E. and B.E., taunting and threatening the victims with pit bulls and snakes, causing the victims to sleep in unsafe and unsanitary conditions, restricting B.E. and S.E.’s access to the bathroom, preventing them from eating regular and suitable meals and forcing S.E. to eat dog food and crawl on the floor while wearing a dog collar, according to the court documents and trial testimony.

According to court documents and trail testimony:

Callahan pointed a firearm at S.E.’s head and threatened to kill her if she did not perform the labor and services he and other conspirators commanded. Callahan also forced S.E. on multiple occasions to engage in sex acts with him and threatened that he and Hunt would kill S.E. if she told anyone about the forced sexual acts.

The conspiracy between Callahan, Hunt, McGuire and Brown took place between August 2010 and October 2012. The object of the conspiracy included holding S.E. in a condition of forced labor and involuntary servitude and intentionally causing painful injuries to S.E. so they could use the narcotic pain medications she was prescribed to satisfy their personal drug cravings.

Callahan and Hunt recruited S.E. and B.E. to live with them in their two-bedroom apartment in Ashland, knowing that S.E. suffered a traumatic brain injury that left her with a cognitive disability and that S.E. and B.E. received monthly public assistance payments.

In August 2011, McGuire, at the direction of Callahan and Hunt, smashed S.E.’s hand with a rock with such force that S.E. needed to go to the hospital emergency room. Callahan, Hunt and McGuire then forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated at the emergency room.

In December 2011, Callahan and Hunt injured S.E.’s back with such force that she needed medical treatment. Again, Callahan and Hunt forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated.

In March 2012, Callahan kicked S.E. in the hip with such force that she needed medical treatment. Callahan and Hunt forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated.

On multiple occasions between August 2010 and October 2012, Callahan and Hunt threatened S.E. and B.E. with serious physical harm, including death, if S.E. did not clean up the apartment, care for their numerous pit bull dogs, snakes and other reptiles, purchase items at the store and perform other labor and services ordered by the conspirators.

Callahan and Hunt used a video camera to monitor S.E. and B.E.’s activities and conversations in the apartment. They often forced S.E. to walk to the store to buy groceries, cigarettes, dog food and other items for Callahan, Hunt and Hunt’s four sons and to pay for these purchases with her public assistance card. They allotted S.E. only a brief time period to complete the shopping and warned her she was not allowed to speak with anyone while she was out. They frequently required B.E. to remain with them at the apartment while S.E. was out and threatened physical harm to B.E. and S.E. if S.E. broke any of their rules.

Callahan and Hunt also threatened to contact Ashland County Job and Family Services and have B.E. taken away if S.E. purchased any items at the store other than those they ordered or if she told anyone about their unlawful conduct.

In June 2011, after S.E. and B.E. had attempted to flee the apartment, Callahan and Hunt ordered Brown and McGuire to find S.E. and B.E. and bring them back to the apartment. Brown and McGuire lured S.E. and B.E. into their vehicle by promising to take them to Dairy Queen, only to deposit them afterwards back at the apartment.

On multiple occasions, Callahan and Brown locked S.E. and B.E. in a room with a window that was nailed shut and a door that had been locked from the outside.

In October 2011, Callahan and Hunt forced S.E. to hit her child while they recorded a video, and threatened to inflict much greater physical harm on both S.E. and B.E. if S.E. did not comply.

One month later, Callahan and Hunt again forced S.E. to strike B.E. while they captured a video recording of the staged incident on Callahan’s cell phone. Callahan and Hunt repeatedly threatened have B.E. taken away by showing the videos to authorities in order to secure S.E.’s compliance to the conspirators’ commands.

The case was prosecuted by Assistant U.S. Attorneys Chelsea Rice and Thomas E. Getz following an investigation by the FBI and Ashland Police Department, with assistance from the Ashland County Prosecutor’s Office.

Edward A. Dembiec, 53, of Lorain, Ohio, was charged with possession of child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The criminal information charges that from on or about October 1, 2008, through on or about May 5, 2013, in the Northern District of Ohio, Eastern Division, and elsewhere, Dembiec, did knowingly possess an Apple iMac Desktop computer, an Acer Aspire Laptop computer, and numerous DVD/CD discs that contained child pornography, which had been shipped and transported in interstate and foreign commerce by any means, including by computer, in violation of Title 18, United States Code, Section 2252A(a)(5)(B).

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 Carol M. Skutnik.  The case was investigated by the United States Postal Inspection Service.

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

A three-count criminal information was filed charging a Willoughby Hills man with filing false tax returns, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Alexander J. Cucu filed false tax returns in 2008, 2009 and 2010, underreporting his income by approximately $139,434, according to the information.

This case is being handled by Assistant U.S. Attorney Justin J. Roberts following an investigation by the Internal Revenue Service – Criminal Investigations.

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 , the defendant’s role in the offense and the characteristics of the violation.

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

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

Shawn J. Bivens, 33, of Vanceburg, Kentucky, was charged with sexual exploitation of a child, transporting visual depictions of minors engaged in sexually explicit conduct, transportation of a minor to engage in illegal sexual activity and travel with intent to engage in illicit sexual conduct.

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

The indictment also charges that from on or about February 28, 2014, through on or about March 2, 2014, Bivens knowingly traveled in interstate commerce, from Kentucky to Ohio, for the purpose of engaging in illicit sexual conduct with a 13-year-old girl. 

From on or about February 28, 2014, through on or about March 2, 2014, Bivens knowingly transported, using any means of interstate and foreign commerce and in and affecting interstate and foreign commerce, numerous computer files, which files contained visual depictions of a real minor engaged in sexually explicit conduct, according to the indictment. 

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

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 and the Lewis County, Kentucky, Sheriff’s Department.

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

An eight-count indictment was filed today charging a Garfield Heights man with distributing heroin and illegally possessing a firearm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Deion Thompson, 27, also known as Sino Grams, was indicted on six counts of distribution of heroin, one count of possession of heroin with intent to distribute and one count of being a felon in possession of a firearm.

“This defendant sold heroin on our streets and had a gun despite being prohibited from having one,” Dettelbach said. “We will continue to work to reduce the supply of drugs in our neighborhoods while working with other partners to reduce demand.”

Thompson made multiple sales of heroin in June and July. On July 7, he possessed 66 grams of heroin and a 9 mm Browning pistol, despite prior convictions in Cuyahoga County Common Pleas Court, including drug trafficking offenses with a schoolyard specification, having weapons under disability and failure to comply with a police order, according to the indictment.

This case is being handled by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the Southeast Law Enforcement Task Force, a collaboration of police departments including Bedford, Bedford Heights, Garfield Heights, Maple Heights, Solon, Oakwood and Walton Hills.

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 , 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

New tax charges were filed against a Mayfield Heights man who earlier this year pleaded guilty to his role in defrauding a Cleveland Heights charter school out of more than $400,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

Joel B. Friedman, 66, is accused of withholding more than $293,000 in payroll taxes from employees at four daycare centers Friedman operated. But he kept the money for himself instead of paying it over to the IRS, according to a supplemental criminal information.

Friedman operated four daycare centers – A Child’s View, Bass Lake Child Care of Kirtland, Bass Lake Child Care of Chardon (also known as Barney Enterprises) and Bass Lake Child Care of Mentor (also known as Bryce Road Enterprises).

In that position, he was responsible for the daycare centers’ business and financial operations, including payroll and employment tax operations.

Between 2008 and 2011, Friedman deliberately failed to pay over to the IRS approximately $293,248 in taxes that were withheld from employees, according to the criminal information.

Friedman pleaded guilty earlier this year to five counts of mail fraud, two counts of wire fraud and two counts of conspiracy to commit money laundering for activities that took place at Greater Heights Academy, a charter school in Cleveland Heights.

Friedman served as chairman of the school and was part of a group that conspired to submit and approve more than $400,000 worth of fraudulent invoices, with a portion of the payments then being returned to Friedman, according to court documents.

“Not only did Friedman violate the trust of taxpayers and the students of Greater Heights Academy, he violated the trust of his employees by failing to pay over their withheld payroll taxes,” Enstrom said.  “The failure to pay over withheld taxes is a serious offense.  IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes.”

This case is being prosecuted by Assistant United States Attorney Robert J. Patton. The case was investigated by the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation.

If convicted, the defendant’s sentence 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.

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

An indictment was filed charging Travis Devon Nettles, age 25, of Toledo, with with possessing a firearm despite a previous felony conviction, 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 agencies in this case are the Bureau of Alcohol, Tobacco, Firearms and Explosives, Toledo, Ohio, and the Toledo Police Department.  The case is being handled by Assistant United States Attorney Noah P. Hood.

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

A Strongsville real estate agent was sentenced to more than 10 years in prison for his role in a $3.3 million mortgage fraud scheme involving six properties in Medina, Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.     

Thomas G. France, 44, was sentenced to 125 months in prison and ordered to pay more than $3 million in restitution. He was previously found guilty of conspiracy and bank fraud.

Joseph Beccia, age 63, of Richfield, was sentenced to two years in prison and ordered to pay more than $3 million in restitution.

Alex Blackmore, age 50, of Bronx, New York, was sentenced to a year in prison and ordered to pay $1.1 million in restitution.

Beccia and his company, Horizon Construction, built six luxury properties in Medina in 2006 and 2007.  Although some of the properties were not fully completed, Beccia listed five of the six properties for sale at purchase prices that were equal to the true market value of each property. 

Beccia incurred the cost of the construction of these homes without having known purchasers for these properties.  Beccia was not able to sell these properties for an extended period of time and began to experience financial difficulties.  Joseph Jones, an individual previously convicted in another mortgage fraud scheme, met Beccia through France, a real estate agent working in the area.  France advised Beccia that Jones had a system by which Jones could sell these properties so that Beccia could pay off his debts on the properties, according to court documents.

Jones and France explained to Beccia that Jones had individuals willing to have properties purchased in their names.  Jones and France also advised Beccia that in order to make Jones’ system work, the properties would need to be removed from the market and re-listed at significantly higher purchase prices.  Finally, Jones and France advised Beccia that they would handle the interactions with the loan officers and securing the mortgage loans.  All Beccia had to do was participate in the sale of the properties at the significantly inflated purchase prices and sign off on the loan documents as the seller, which Beccia agreed to do, according to the court documents.

Beccia advised Jones and France the amount of money he required from the sale of each the properties in order for him to repay the amounts he had borrowed to construct the homes.  Then, Jones determined the additional amount of money he wanted to receive over and above the amount of money required to be distributed to Beccia after the sale of each property.  Beccia and France prepared new purchase agreements for each of the six properties with the inflated purchase price necessary to satisfy the amounts of money required, according to the indictment.

France re-listed five of the six Medina properties for sale at the inflated purchase prices determined by Beccia as follows: 2940 Sutton Lane from $599,000 to $950,000; 4281 Fox Glen Drive from $395,000 to $647,000; 4320 Perian Court from $399,000 to $650,000; 3006 Sutton Lane from $529,500 to $920,000; and 4740 Lake Forest Trial from $925,000 to $1.4 million, according to court documents.

Each of the properties for which defendants secured a mortgage loan went into foreclosure, resulting in a total loss of approximately $3.3 million, according to court documents.         

This case was prosecuted by Assistant United States Attorney Mark S. Bennett, following an investigation by the Cleveland Offices of the Federal Bureau of Investigations and the United States Secret Service. 

Two Brook Park men were sentenced to more than four years in prison for defrauding the Supplemental Nutrition Assistance Program (formerly the Food Stamp Program) from four Cleveland stores where they accepted food stamps for ineligible items such as beer and cigarettes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Brothers Saed (Sam) Wahdan, 42, and Maher (Mario) Wahdan, 43, were each sentenced to 54 months in federal prison and ordered to pay $200,000 in restitution. They pleaded guilty last year to one count of conspiracy to commit food stamp fraud, one count of food stamp fraud and two counts of unlawful redemption of food stamps. Maher Wahdan also pleaded guilty to an additional count of theft of public funds.

“These defendants used a program designed to help hungry people to instead line their pockets,” Dettelbach said. “We will continue to work eradicate waste, fraud and abuse of government programs.”

Nidal Jaber, 46, also of Brook Park, was sentenced to 10 months of home confinement for his role in the conspiracy.

Between January 2008 and March 2012, the Wahdans and others conspired to commit food-stamp fraud through four of their businesses:  One Stop Beverage, 5105 Franklin Blvd.; Bridge Deli and Beverage, 4700 Bridge Ave.; Franklin Beverage and Deli, 4719 Franklin Blvd., and Scott Food Mart, 951 Linn Drive, according to court documents. 

The Wahdans owned and operated all four stores but put them in the names of other people to conceal the fact that Saed Wahdan had a prior conviction for food stamp trafficking and Maher Wahdan had a prior conviction for impersonating an officer – both of which precluded their participation in the food stamp program, according to court documents.

The defendants used their businesses to exchange customer food stamps for cash and other unauthorized items, including beer and cigarettes. They also purchased food stamp cards from customers and used them at other grocery locations to purchase inventory for their stores and for their personal use, according to court documents.

This case is being prosecuted by Assistant U.S. Attorneys Christos N. Georgalis, Vasile Katsaros and James Morford following an investigation by the U.S. Department of Agriculture, Office of Inspector General-Investigations and Department of Homeland Security, Homeland Security Investigations.