Northern District of Ohio

A grand jury returned a one-count indictment charging Edward Robert Hudson, 51, of Painesville, with one count of bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Hudson robbed the First Merit Bank, 4834 Richmond Road, Warrensville Heights, Ohio, a federally insured financial institution, on April 21, 2014. 

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

The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following an investigation by the Federal Bureau of Investigation, the Warrensville Heights Police Department, and other local law enforcement agencies.

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

Nikki Ann Nazarian, 40, of Akron, Ohio, was indicted today by a federal grand jury for failure to register and update registration as required under the Sex Offender Registration and Notification Act, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The United States Marshals Service in Akron, Ohio, conducted the investigation.  The case is being prosecuted by Assistant United States Attorney Justin Seabury Gould.

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

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 Ohio man was fined $2,000 and put on probation for two years after discharging well drilling waste into Beecher Brook, a tributary of the Chagrin River, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

James L. Hidey, 45, of Dover, Ohio, previously pleaded guilty to two counts of making unpermitted discharges.

Hidey worked for Great Plains Exploration, an oil and gas well drilling company based in Northeast Ohio.  On two separate occasions in 2008, he directed the discharge of brine into a stormwater sewer after the completion of gas wells in Mayfield Heights and Highland Heights.  The brine flowed from the stormwater sewers into Beecher Brook and eventually into the Chargrin River, according to the information.

Brine is water with a high quantity of salt dissolved into it and is used during the drilling phase of the well installation.  It must be handled and disposed of properly because of the toxicity of brine.

“Clean, fresh water is our greatest resource in Northern Ohio,” Dettelbach said. “We will aggressively investigate and prosecute cases in which people pollute Ohio’s streams, rivers and lakes.”

“Individuals who deliberately violate environmental protection laws and jeopardize the health and safety of Ohio families and wildlife must be held accountable for their crimes. I am glad to see that justice is being served in this case,” said Ohio Attorney General Mike DeWine. 

“Knowingly discharging harmful waste byproducts from drilling operations has serious consequences for natural resources and local communities,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio.  “On several occasions, the defendant instructed his workers to dispose of drilling waste into storm sewer catch basins that ultimately flow into rivers and streams, putting human health, wildlife and the environment at serious risk.”

“We will not tolerate the criminal dumping of brine and those who do will be held accountable,” said Ohio EPA Director Craig W. Butler. “I’m proud of Ohio EPA’s Office of Special Investigations for the work they’ve done in partnership with the members of the Northeast Ohio Environmental Crimes Task Force, including the U.S. EPA Criminal Investigation Division and the Ohio Bureau of Criminal Identification and Investigation.”

This case is being prosecuted by Special Assistant United States Attorney Brad J. Beeson, following an investigation by the U.S. EPA Criminal Investigation Division, the Ohio Bureau of Criminal Identification and Investigation, and the Ohio Environmental Protection Agency, all members of the Northeast Ohio Environmental Crimes Task Force.

A Mayfield Village rheumatologist pleaded guilty to 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, admitted causing the shipment of misbranded drugs, a misdemeanor violation of the Food, Drug and Cosmetic Act.

“This doctor used drugs that had not been approved by the FDA,” Dettelbach said. “Our office is committed to working with our partners to make sure patients are getting medicine that has been properly inspected.”

“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. “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 the charges.

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.

Dr. Mandel faces up to one year in prison and fines up to $100,000. His sentence will be determined by the court after reviewing factors unique to this case, including his prior criminal record, if any, his 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.

These cases are being 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 at 800-447-8477.  To learn more about health care fraud prevention and enforcement go to www.stopmedicarefraud.gov

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

Michael J. Kisling, 24, of Mansfield, Ohio, was charged with sexual exploitation of a child, receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, and identity theft, said  Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges that from on or about November 1, 2010, through on or about November 22, 2010, Kisling used, persuaded, induced, enticed and coerced a minor, that is, a 14-year-old girl to engage in sexually explicit conduct, for the purpose of producing visual depictions of such conduct, knowing that such visual depictions would be transported using any means and facility of interstate and foreign commerce in and affecting interstate and foreign commerce, and such visual depictions were actually transported using any means and facility of interstate and foreign commerce in and affecting interstate and foreign commerce. 

The indictment also charges that on or about November 22, 2010, and again on or about April 4, 2013, Kisling knowingly distributed, 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, that is, a 14-year-old girl engaged in sexually explicit conduct.  

The indictment also charges that on or about April 4, 2013, Kisling knowingly used, without lawful authority, in and affecting interstate and foreign commerce, a means of identification of another person, with the intent to commit a violation of federal law.  

The indictment also charges that on or about December 23, 2013, Kisling knowingly possessed several printed pages that contained visual depictions of a real minor, that is, a 14-year-old girl engaged in sexually explicit conduct, which visual depictions had been shipped and transported using any means and facility of interstate and foreign commerce and in and affecting interstate and foreign commerce.  The indictment also charges that on or about January 28, 2013, through on or about December 10, 2013, Kisling knowingly received in interstate and foreign commerce, numerous digital files, which files contained visual depictions of real minors engaged in sexually explicit conduct.

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 Eau Claire County, Wisconsin Sheriff’s Office.

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

An Indiana man was sentenced to 17 1/2 years in prison for crimes involving illicit sexual conduct with 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 Federal Bureau of Investigation’s Cleveland office.

James W. McCormick, 36, of Fort Wayne, Indiana, was sentenced to 210 months in prison by U.S. District Judge Jeffrey J. Helmick. McCormick previously pleaded guilty to four counts of travelling in interstate commerce with the intent to engage in illicit sexual conduct and one count of transportation with the intent of criminal sexual activity.

McCormick travelled across state lines for the purpose of engaging in illicit sexual conduct with a minor between July and August 2013, according to court documents.

The case was prosecuted by Assistant U.S. Attorneys Alissa M. Sterling following an investigation by the FBI (both Toledo and Fort Wayne offices), the Northwest Ohio Crimes Against Children Task Force and the Maumee Police Department.

A New Jersey doctor was sentenced to five years in prison for this role in a multi-state drug conspiracy that sent millions of dollars of highly addictive prescription painkillers across the country, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

U.S. District Judge Solomon Oliver sentenced Dr. Terence Sasaki to 60 months in prison and ordered him to pay $59,133 in restitution. Sasaki was convicted on charges of conspiracy to distribute controlled substances and conspiracy to launder money.

Thirteen people have now been sentenced for their roles in the drug conspiracy, including doctors, pharmacists, a call-center manager and others.

“This is one of the more egregious pill mill cases we have ever come across,” Dettelbach said. “Prescription drug abuse is a major problem. Whether it is an Internet-based pill mill or a local dentist handing out prescriptions, we are committed to stopping those who illegally distribute drugs.”

Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation said: “This is an important victory for the citizens of Northern Ohio.  These individuals not only fueled the prescription drug problem in Northern Ohio, but they supported addiction in several parts of the country.  As a result of this joint investigative effort, not only are numerous criminals in prison for their crimes, but the government has seized a significant portion of the illegal proceeds through asset forfeiture.”

Pharmacist Vinesh Darji was sentenced last year to nearly five years in prison for his conviction on conspiracy to distribute controlled substances.

Audrey Barbara Rovedo was sentenced last year to more than six years in prison for convictions on conspiracy to distribute controlled substances and conspiracy to launder money.  

Rovedo, a manager at Delta Health, is 65 and lived in Jacksonville, Fla. Sasaki, 42, lives in Jersey City, N.J. and Darji, 43, lived in Tampa, Fla., according to public records.

James Hazelwood in 2012 was sentenced to more than eight years in prison and ordered to pay $3.8 million in restitution.

Hazelwood, 44, of Cumming, Ga., previously pleaded guilty to engaging in a continuing criminal enterprise for his role in operating a company that illegally distributed millions of pills of prescription painkillers, including hydrocodone and alprazolam, to drug addicts and recreational drug users who had no medical reason for receiving the pills.

Hazelwood operated USMeds, LLC and later, American Health Alternatives. Hazelwood, through both companies, worked with pharmacists and pharmacies who supplied drugs to the organization, which Hazelwood then distributed to people who contacted him through the companies’ web sites or call centers, according to court documents.

Hazelwood controlled most aspects of the drug trafficking organization. He set up and maintained web sites, including usmedsovernight.com, verybestmeds.com and mydoctorconsultonline.com, to solicit customers to buy hydrocodone and other pills without valid prescriptions, according to court documents.

The transactions were nothing more than illegal customer-dictated drug orders that bore the electronic or handwritten signature and DEA registration number of a doctor. Customer, not doctors, selected the type of controlled substance, quantity and strength to be “prescribed.” Customers paid for their “consultation” and pills up front, via credit card, and medical insurance was not accepted. Doctors signing the drug orders did not physically examine customers or even meet them face-to-face. Instead, after selecting the drug he or she wanted, the customer filled out a brief online questionnaire, the customer had a short “telephone consultation” and the prescription was issued. The conspiring pharmacies then shipped the drugs via FedEx to thousands of customers across the country, according to court records.

In addition to soliciting customers via its web site, Hazelwood’s organization also advertised on billboards in bathroom stalls at bars and nightclubs, at a music festival in Miami and internet banner ads, among other means, according to court documents.

Because of the makeup of his customer base, the Hazelwood drug trafficking organization charged its customers a price that was multiple times higher than the retail cost of the drugs it provided. The group generally charged $300 for 90 tablets of hydrocodone, plus a $55 “consult” fee, according to court documents.    

The activity took place between 2005 and 2009, according to court documents.

This case was prosecuted by Assistant United States Attorneys Rebecca Lutzko and Edward Feran following an investigation by the Drug Enforcement Administration, the Internal Revenue Service and the Medina County Drug Enforcement Task Force.

The cooperation of the U.S. Attorney’s offices in Jacksonville, Florida; Tampa, Florida, Atlanta; Puerto Rico, New Orleans and New York City was instrumental in the arrests, searches and initial court appearances in this case.   

Mark A. Steffee, 43, of Hartville, Ohio, was sentenced to 14 years in prison after previously being found guilty of enticement and possession of child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Steffee used a computer connected to the Internet to attempt to persuade, induce, entice and coerce a 14-year-old girl to engage in illegal sexual activity with him. This took place from September 2005 through December 1, 2005, and again from on or about March 5, 2013, through on or about March 27, 2013, according to court documents.

Steffee also possessed a computer that contained child pornography, according to court documements.

The case was prosecuted by Assistant U.S. Attorney Michael A Sullivan following an investigation by the United States Secret Service, the Ohio Internet Crimes Against Children Task Force and the Hartville Police Department.

A seven-count indictment was filed charging an Elyria man with federal narcotics and firearms violations, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Jerry L. Wells, Jr., 33, faces four counts of distribution of heroin, one count each of possession with intent to distribute marijuana and MDMA, and one count of being a felon in possession of a firearm.

Wells distributed heroin on four occassions in February. He also possessed 30 grams of MDMA and 60 marijuana plants on Feb. 21, according to the indictment.

On that same date, Wells possessed a Taurus 9 mm pistol despite several previous convictions in Lorain County Common Pleas Court, including heroin trafficking, cocaine trafficking and burglary, according to the indictment.

This case is being prosecuted by Assistant U.S. Attorney Robert F. Corts following an investigation by the Elyria Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.

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, 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.

An Ashland woman was sentenced to nearly four years in prison for her role in a conspiracy in which a cognitively disabled woman and her child were held against their will and forced to perform manual labor, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Antony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office.

U.S. District Judge Benita Pearson sentenced Dezerah L. Silsby to 45 months in prison. Silsby, 22, pleaded guilty last year to two counts: conspiracy to commit an offense or defraud the United States, and acquiring controlled substances by deception.

“This defendant physically hurt another person as a way to get drugs and played a role in denying the victim and her daughter freedom,” Dettelbach said. “The conduct in this case is profoundly disturbing.”

“Dezerah L. Silsby admittedly inflicted pain and stole from a person being held against her will in order to feed her own drug habit,” Anthony said. “This sentence is well deserved for these cruel acts.” 

Daniel J. Brown, 34, is currently serving five years in prison for his role in the crimes. Jordie L. Callahan, 27, and Jessica L. Hunt, 32, both of Ashland, were convicted following a jury trial this year and are scheduled to be sentenced July 22.

The victims in this case are identified only as S.E. and her juvenile child. S.E. suffered from a cognitive disability and received monthly public assistance payments, according to court documents.

Callahan and Hunt recruited S.E. and her child to live with them in their two-bedroom apartment in Ashland in 2011. Hunt’s four juvenile sons also lived at the house, along with numerous pit bull dogs, large snakes and other reptiles, according to court documents.

Callahan and Hunt monitored S.E. and her child’s activities with a baby monitor, according court documents.

Callahan and Hunt forced S.E. to clean the house, do laundry, walk to the store to do their shopping and care for their numerous pit bulls and reptiles. S.E. was timed when she went to the store and was not allowed to bring her child with her, according to court documents.

Callahan and Hunt beat S.E. and her child, threatened their lives, denied them food and threatened them with the pit bulls and reptiles, according to court documents.

At various points, Callahan threated S.E. with a gun. S.E. and her child initially were forced to sleep on a cement floor in the basement with no mattress. Later they were moved to a room upstairs, again with no bed or mattress. The child was kept in the room all day and at night the room was padlocked to keep S.E. and her child from escaping, according to court documents.

In August 2011, Callahan had the idea to smash S.E.’s hand and then send her to the emergency room to get pain medication that would be shared by Callahan, Hunt and Silsby. Silsby slammed S.E.’s hand with a rock and then took S.E. to the emergency room and returned with a prescription for pain medication, according to court documents.

In December 2011, Callahan and Hunt injured S.E.’s back and then forced her to turn over the prescription for Vicodin she received for her back injury, according to court documents.

On another occasion, Callahan kicked S.E. in the hip, and then he and Hunt forced S.E.to turn over the prescription for Vicodin she received for her hip injury, according to court documents.

When S.E. attempted to flee the apartment, Brown and Silsby deceived S.E. into accompanying them in their vehicle and returned her to Callahan and Hunt’s apartment, according to court documents.

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

David A. Riedel, age 53, of Seville, Ohio, is accused of committing mail fraud as part of a $185,000 scheme, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The one-count criminal information filed today alleges that on approximately 53 occasions, from September 2010 to July 2012, Riedel, for the purpose of executing a scheme to defraud, Riedel caused checks to be sent and delivered by the United States Postal Service.  Specifically, the information alleges that while Riedel was employed by Avanti Trucking, he applied for a United States Post Office Box and falsely identified it as the address for a company that provided hauling services to Avanti Trucking.  Riedel submitted approximately 50 fraudulent invoices to Avanti Trucking, claiming that the company had performed work for Avanti Trucking.  In fact, and as Riedel then well knew, that company had stopped providing hauling services for Avanti Trucking in April 2010. 

According to the information, Riedel received approximately $185,000 from Avanti Trucking through his fraudulent scheme.  Due to the losses caused by Riedel’s conduct, Avanti Trucking was forced to liquidate its assets in 2013 and is no longer in operation.

This case is being prosecuted by Assistant United States Attorney Chelsea S. Rice following an investigation by the United States Postal Inspection Service.

A criminal information is 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 Perrysburg man was sentenced to 25 years in prison for child pornography crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Andrew B. Palm, 34, was found guilty last year of one count each of receit of child pornography and production of child pornography.

The defendant's Sandalwood Road home is also subject to forfeiture.

This case was prosecuted by Assistant U.S. Attorneys Alissa M. Sterling and Guillermo J. Rojas following an investigation by United States Immigration and Customs Enforcement’s Homeland Security Investigations and the Perrysburg Police Department.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced the filing of a two-count Information charging Joseph Udeck, age 70, of North Canton, Ohio, with conspiracy to launder monetary instruments and the transmission of wagering information.

Count 1 of the information alleges that from at least as early as January 1, 2000, and continuing up to and including May 1, 2011, Joseph Udeck conspired to launder money generated from an illegal sports bookmaking operation. 

Count 2 of the information alleges that Joseph Udeck engaged in the business of betting and wagering and with using one or more wire communication facilities for the transmission and interstate commerce of bets and wagers and information assisting in the placing of bets and wagers on one or more sporting events and contests.

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 United States Secret Service and its Money Laundering Task Force.  The case is being prosecuted by Assistant United States Attorneys Robert E. Bulford and Robert J. Patton.

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

A federal grand jury returned a four-count indictment charging Brent See, age 37, of Columbiana, Ohio, with possession of unregistered firearms and being in the business of manufacturing firearms, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Count 1 of the indictment charges that on or about July, 2013 through January, 2014, See was engaged in the business of manufacturing and dealing in silencer firearms, without a license.

Counts 2 through 4 of the indictment charge that See was in possession of a silencer, not registered to him, on or about September 3 and December 13, 2013, and January 10, 2014.

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

The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Postal Inspection Service.  The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.

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

Susan L. Kathan, aka Susan Dent, aka Susan Shover, aka Susan Davis, 57, of Barberton, Ohio, was indicted today by a federal grand jury for failure to register and update registration as required under the Sex Offender Registration and Notification Act, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The United States Marshals Service in Cleveland, Ohio conducted the investigation.  The case is being prosecuted by Assistant United States Attorney Justin Seabury Gould.

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

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

A seven-count indictment was filed charging Dustin Shepherd, aka “Rev,” age 31, of Ravenna, Ohio, and Christopher Ferry, aka “Skinny,” age 21, of Newton Falls, Ohio, with conspiracy and possession with intent to distribute methamphetamine and marijuana, and firearms violations, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Count 1 of the indictment charges that from in or about October 2013 through March 2014, Shepherd and Ferry conspired to distribute more than 50 grams of methamphetamine and less than 50 kilograms of marijuana in the Ravenna, Ohio, area and elsewhere.  It was part of the conspiracy that Shepherd supplied marijuana and methamphetamine to Ferry for distribution in and around Ravenna, Ohio, according to the indictment.

Count 3 of the indictment charges that on or about March 14, 2014, Ferry possessed with the intent to distribute methamphetamine.

Counts 4 and 5 of the indictment charge that on or about March 28, 2014, Shepherd possessed with the intent to distribute more than 50 grams of methamphetamine and marijuana.

Counts 2 and 6 of the indictment charge that on or about February 27 and March 28, 2014, Shepherd  possessed more than 50 various firearms and more than 24,000 rounds of ammunition, despite having been previously convicted of commercial burglary and possession for sale of a controlled substance, in the Tehama County Superior Court of California.

Count 7 of the indictment charges that on or about March 28, 2014 Shepherd possessed a firearm while committing a drug trafficking crime, that is, possessing with the intent to distribute methamphetamine and marijuana.

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

The investigation preceding the indictment was conducted with the combined efforts by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Postal Inspection Service; Ohio State Highway Patrol; Illinois State Police; Portage County Drug Task Force, and the Akron City Police Department.  The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.

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

A Toledo woman was sentenced to three years in prison for interstate 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 Federal Bureau of Investigation’s Cleveland Office.

Amber Ginter, aka Amber Mendoza, age 36, transported a minor from Ohio to Michigan in December 2009 with the purpose that the minor engage in commercial sexual activity, according to the court documents.

“This case is another stark reminder that human trafficking exists in our district and in our collective back yard,” Dettelbach said. “It’s a reminder that we need to be better neighbors and ask questions if something looks suspicious.”

Anthony said, “The sexual human trafficking of minors for profit is an injustice that will not be tolerated. The FBI continues to aggressively pursue and bring to justice those who violate the rights of our most vulnerable of the community.”

This case is being prosecuted by Assistant U.S. Attorney James V. Moroney, following an investigation by the Toledo Resident Agency of the FBI and the Northwest Ohio Violent Crimes Against Children Task Force. The task force is made up of members of the FBI, 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.

A Canton man was sentenced to nearly two years in prison and ordered to forfeit $28,000 in cash as well as cell phones and computers after he previously pleaded guilty to conspiring to launder illegal gambling proceeds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Conrad (Smokey) Everett, Special Agent in Charge, United States Secret Service, Cleveland Field Office.

Christos Karasarides, 48, was sentenced to 22 months in prison. He was also fined $25,000, in addition to the forfeiture ordered by U.S. District Judge James Gwin.

Kararsides conducted a sports bookmaking business by accepting wagers on sporting events, including NFL football, NCAA football, NBA basketball and NCAA basketball games, paying out winnings, collecting losses and collecting a percentage or “vigorish” for each wager placed, according to court documents

Kararsides used off-shore internet gambling services to record and process bets paid by gamblers. He also accepted payments of gamblers’ losses in the name of his business to facilitate the collection and hid the nature of the source of the sports bookmaking activities, according to court documents.

He also pleaded guilty to possession of Oxycodone and was sentenced to one year in prison for that offense, to be served concurrently to the money laundering sentence.

This case was prosecuted by Assistant U.S. Attorneys Samuel Yannucci and Robert E. Bulford following an investigation by the U.S. Secret Service and the Secret Service Money Laundering Task Force, is a multi- agency group comprised of the U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigations, Ohio Department of Public Safety, Ohio Adult Parole Authority and the Cleveland Police Department.

Two men from Northeast Ohio were both sentenced to more than eight years in prison after pleading guilty to two counts of inducing a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Randall S. Allman, 38, of Strongsville, and Shawn M. Kadras, 34, of Cleveland, on two occasions in February 2013, did persuade, induce, entice and coerce a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct, according to the indictment.

Kadras was sentenced to 110 months in prison while Allman was sentenced to 97 months in prison.

The case was prosecuted by Assistant United States Attorney Michael A. Sulivan following an investigation by the Federal Bureau of Investigation’s Safe Streets Task for and the Summit County Sheriff’s Office.

A Twinsburg man was sentenced to nearly five years in prison and ordered to pay approximately $1.2 million in restitution for his role in a tax-fraud conspiracy, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, IRS-Criminal Investigation Special Agent in Charge.

Brian D. Krantz, 47, previously pleaded guilty to one count of conspiracy to make false claims for income tax refunds and five counts of making such false claims. U.S. District Judge Sara Lioi  sentenced him to 57 months in custody.

“Those individuals who engage in this type of financial fraud should know they will not go undetected and will be brought to justice,” Dettelbach said.

“This sentence sends an important message to America’s taxpayers who play by the rules that we have no tolerance for those who make up their own rules,” Enstrom said.

The conspiracy included filing false income tax returns claiming false refunds totaling more than $8.8 million. Based on those false claims, the U.S. Treasury issued 17 refund checks totaling approximately $3,615,586 payable to Krantz and various corporations controlled by Krantz and his co-conspirator, Bryan D. McCallum, according to the court documents.

Krantz owned and controlled two corporations that engaged in financial services and/or real estate investment business activities. McCallum, of Parma Heights, worked as an accountant/ bookkeeper at the companies, according to court documents.

From approximately April 2009 through June 8, 2010, Krantz and McCallum conspired to make false claims for tax refunds using income tax returns filed with the IRS in the names of Krantz, companies formed by Krantz and McCallum, and several “shelf” companies purchased by Krantz. A “shelf” company is a corporate or other formal non-operating business entity established for the purpose of being held for sale to another person, according to court documents.

The scheme involved the use of fake IRS Forms 2439, titled “Notice to Shareholder of Undistributed Long-Term Capital,” purportedly issued by some of the shelf companies to the persons and companies in whose names the false returns were filed.  A Form 2439 is to be issued by a regulated investment company (RIC) or real estate investment trust (REIT) to report undistributed capital gains and taxes withheld from those gains on behalf of RICs or REITs shareholders. Under federal tax law, RICs and REITs are entities that are not taxed on their earnings but instead pass those earnings to their shareholders who, in turn, have the obligation to report those earnings and any resulting tax liabilities on the shareholders’ income tax returns. The returns filed pursuant to the conspiracy claimed substantial amounts of Form 2439 withholding credits, when, in fact, none of the companies listed as RICs or REITs on the forms were actually RICs or REITs or had any undistributed capital gains or withheld taxes, according to court documents.

Krantz used more than $1 million of the refund proceeds to finance a real estate venture he established with other partners, known as Phoenix Ventures Partners LLC. Krantz and McCallum misled Krantz’s real estate partners to believe that a group of Colorado-based hard money lenders had provided the funds.

McCallum previously pleaded guilty to a two-count information charging him with the same  false claims conspiracy and with making 30 false claims. He was sentenced to three years in prison and ordered to pay approximately $1.2 million in restitution.

The government’s case was prosecuted by Assistant United States Attorneys John M. Siegel and Justin J. Roberts, following an investigation by the Internal Revenue Service, Criminal Investigation.

A Canal Fulton man sentenced to 15 years in prison after previously been found guilty of two counts of inducing a minor to engage in sexually explicit conduct and two drug charges, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

William P. Lacey, 55, on two occasions in February 2013, did persuade, induce, entice and coerce a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct, according to the indictment.

He also possessed four kilograms of the substance a-PVP and one kilogram of the substance 4-MEC, according to court documents.

The case was prosecuted by Assistant United States Attorney Linda Barr following an investigation by the Federal Bureau of Investigation’s Safe Streets Task for and the Summit County Sheriff’s Office.

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

As the 2014 tax filing deadline approaches, these cases serve as reminders that there are civil and sometimes criminal penalties to filing erroneous tax returns.

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

“IRS Criminal Investigation takes violations of the tax law very seriously,” Enstrom said. “The investigative work done by Criminal Investigation is a part of an aggressive effort by the IRS to combat tax fraud on all fronts. With the April 15 tax deadline upon us, it is important for people to have confidence that when they pay their taxes, their neighbors, friends and co-workers are doing the same.”

Details on a few cases over the past year:

United States v. Gooch and Scott: Don P. Gooch and Gerard F. Scott, self-proclaimed “citizens of the world,” found guilty of conspiring to defraud the Internal Revenue Service out of more than $8 million. Gooch, 64, of East Cleveland, was sentenced to eight years in prison while Scott, 38, was sentenced to 10 years in prison .

In early 2011, Scott obtained a tax identification number for a purported trust (the Gerard Frank Scott Trust) and filed false Forms 1099-INT with the IRS stating that the trust had paid millions of dollars of interest income to Gooch, a woman identified at trial as Scott’s wife, and two other trusts purportedly set up by Scott and Gooch, from which a total of $17 million of taxes had purportedly been withheld. Based on those false 1099 forms, the conspirators caused false income tax returns to be filed for Gooch and Scott’s wife, and the two other trusts claiming false income tax refunds totaling approximately $8,033,930, according to court documents.

United States v. Mace: Brandon Mace, 35, of Canton was sentenced to more than six years in prison for claiming false income tax refunds totaling nearly $5.5 million. Mace filed the false claims while incarcerated on state charges. Mace pleaded guilty to two counts stating that he prepared and filed false income tax returns for the years 2008 and 2009 claiming false tax refunds in the amounts of $207,000 and $5,292,000, respectively.

United States v. Hall: A former Toledo medical doctor was sentenced to five years in prison after previously pleading guilty to crimes related to the dispensation of 1,300 pills of Oxycodone and fraudulently billing Medicaid for more than $78,000. Darrell A. Hall, 54, pleaded guilty to conspiracy to distribute a controlled substance, health care fraud and a tax count. He failed to pay $97,384.88 in taxes that he owed to the Internal Revenue Service owed on behalf of EDM Health Services, LLC, between 2007 and 2010, according to court records.

A federal grand jury in Cleveland returned a one-count indictment charging three Texas men with possession with the intent to distribute approximately 51 kilograms of cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. 

Indicted are Guadalupe J. Zarate, age 42, of Penitas, Texas, Jesus Alberto Flores, age 25, of Pharr, Texas, and Noe Romero Salinas, age 32, of Rio Grande, Texas.

The men were in possession of the drugs in the Northern District of Ohio on April 4, 2014, according to the indictment.

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

The investigation preceding the indictment was conducted by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Akron Police Department, the Summit County Sheriff’s Office, and the Akron-Summit County High Intensity Drug Trafficking Area (HIDTA) initiative.  The case is being prosecuted by Assistant United States Attorney Samuel A. Yannucci.

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

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that William Lintala, 31, of Wickliffe, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.

The indictment charges that from in or about March 27, 2010, through on or about October 22, 2013, Lintala knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct, and possessed an Intel i5 tower computer, a Western Digital hard drive, and a Kingwin Brand USB external hard drive that contained child pornography on November 5, 2013.

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

This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik.  The case was investigated by the Federal Bureau of Investigation, Painesville 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 grand jury returned a three-count indictment charging Christian Emerson, age 20, of Maple Heights, Ohio, with armed bank robbery and brandishing a firearm during the commission of a felony, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Christian Emerson robbed a Huntington Bank in Richmond Heights, Ohio, and stole approximately $2,306.00 from the bank.   The indictment further alleges that Christian Emerson robbed a Citizens Bank in Shaker Heights, Ohio, stole approximately $1,304.14 from the bank, and brandished a firearm during the commission of the robbery. 

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

The case is being prosecuted by Assistant U.S. Attorney Adam J. Hollingsworth following an investigation by the Federal Bureau of Investigation.

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

A federal grand jury returned a four-count indictment charging Jonathon E. Schubert, age 29, of Elyria, Ohio, with armed bank robbery and brandishing a firearm during the commission of a felony, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Jonathon E. Schubert robbed three different PNC Banks (in Sheffield Village, Cleveland, and North Olmsted, Ohio) on November 26, 2013, January 27, 2014, and March 10, 2014, stealing approximately $15,315.75 from the banks, and brandishing a firearm during the commission of the November 26,2013 robbery. 

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

The case is being prosecuted by Assistant U.S. Attorney Adam J. Hollingsworth following an investigation by the Federal Bureau of Investigation.

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

A six-count indictment was filed charging an Elyria man with distribution of heroin and fentanyl, including distributing fentanyl that caused the death of an Elyria resident on Nov. 9, 2013, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Siarres R. Noble, age 29, faces two counts of distribution of heroin and four counts of distribution of fentanyl.

The charges include the specification that alleges the fentanyl Noble distributed on November 8, 2013, resulted in the death of an Elyria resident one day later.

“The poison sold by this defendant directly led to the death of a woman,” Dettelbach said. “Heroin and fentanyl use leads to death, destroys lives and damages families. We will continue doing all we can to turn the tide on this epidemic.”

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

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

“I want to thank everyone involved in this case for the effort they put into it.  Starting with the response from Elyria Police Investigative Unit for responding so quickly to the spike in overdoses that led to the arrest of Siarres Noble for selling the drugs that led to the death. I cannot say enough about the efforts put forward by the Lorain County Prosecutor’s office, the FBI and the U.S. Attorney’s office. It is the strong working relationship between all of these agencies that led to the federal indictment of Siarres Noble,” Whitely said.  

The indictment results from an investigation conducted by the Elyria Police Department and the Federal Bureau of Investigation.

The case was presented for indictment by Assistant United States Attorneys Robert F. Corts and Vasile C. Katsaros and Special Assistant United States Attorney Margaret Tomaro. 

If convicted, the defendants’ 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 Cuyahoga Falls man pleaded guilty to offering to buy a child, enticement, and receiving and distributing visual depictions of minors engaged in sexually explicit conduct, 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.

Robert W. Thomas, 37, is scheduled to be sentenced July 24.

“The conduct laid out in the indictment should sound an alarm for all parents,” Dettelbach said. “We will remain vigilant in protecting our children from predators.”

“Mr. Thomas’ behavior and his stated desires for wanting to buy a child are frightening,” Anthony said. “Law enforcement will continue to proactively and aggressively pursue predators that intend to harm our children and this is yet another reminder for parents to be aware of their child's Internet activities.”

From on or about January 6, 2014, through on or about January 11, 2014, Thomas offered to purchase or otherwise obtain custody or control of a minor, that is, a 10-year-old girl, with the intent to promote the engaging in of sexually explicit conduct by such minor for the purpose of producing a visual depiction of such conduct; and such offer was communicated and transported using any means and facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce by any means including by computer, according to court documents.

From on or about January 6, 2014, through on or about January 11, 2014, Thomas knowingly used a computer connected to the Internet and a cellular phone, to attempt to induce a 10-year-old girl to engage in illegal sexual activity with him, according to court documents.

From on or about January 1, 2012, through on or about January 11, 2014, Thomas 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, according to court documents. 

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 Alliance Police Department.

A federal Grand Jury returned a two-count indictment charging Rita Johnson, 61, of Cleveland,  with theft of government funds and making false statements in relation to fraudulently securing Social Security benefits, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. 

The indictment alleges that Johnson, the representative payee for her grandmother, stole approximately $74,197 in government funds from the date of her grandmother’s death on May 2, 2004 until March 2011.  

Johnson accomplished this scheme by concealing her grandmother’s death and then converting her deceased grandmother’s Social Security benefits for her own use in violation of her responsibilities as a representative payee and federal law, according to the indictment. 

The indictment also alleges that, when asked by federal agents about her grandmother, Johnson made false statements and fraudulently provided a forged funeral service program that listed an inaccurate date of death. 

Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the Social Security Administration's Office of Inspector General.

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

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

A Cleveland man was indicted on charges that he fraudulently received up to $55,000 in federal student financial aid funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. 

Robert Williams, 35, faces one count of theft of federal student financial aid funds.

The indictment alleges that Williams enrolled in approximately six different Ohio colleges between 2007 and 2012 in order to receive Department of Education and Department of Veterans Affairs federal student aid benefits, despite the fact that he had no intention of obtaining a degree. 

Williams used the federal student aid funds for his own personal use and enjoyment, according to the indictment.

Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the Department of Education -- Office of Inspector General and the Department of Veterans Affairs -- Office of Inspector General.

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

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

A Canton man and the construction company he owns were charged with one count of wire fraud for making false representations about the company’s office location so it could obtain a HUBZone certification and qualify for tens of millions of dollars’ worth of federal contracts, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Charged are William Richardson III, also known as Buster Richardson, and TAB Construction Company, Inc., of which Richardson is the sole owner and shareholder.

The Historically Underutilized Business Zone Act of 1997 (the HUBZone Program), was established to provide federal contracting assistance for qualified small business concerns located in historically underutilized business zones in an effort to increase employment opportunities, investment, and economic development in those areas.  Under the HUBZone Program, certain government contracting opportunities were “set aside” to be awarded only to eligible HUBZone Program participants, according to the information.

There were four requirements to participate in the HUBZone Program.  First, a firm had to be classified as a small business. Second, the firm had to be controlled and owned at least 51 percent by United States citizens. Third, a firm’s principal office had to be located in a designated HUBZone area. Fourth, at least 35 percent of the firm’s employees had to reside in a designated HUBZone area. Only firms that satisfied all of these requirements were eligible to participate in the HUBZone Program and compete for HUBZone set-aside and/or sole-source contracts, according to the information.

Before a firm could participate in this program and bid on designated government contracts, it had to seek and obtain a certification from the United States Small Business Administration (SBA) verifying that the firm was HUBZone Program eligible.  The SBA relied on information that was provided by applicant firms to determine and certify eligibility, according to the information. 

In August 2000, to obtain a HUBZone certification, Richardson and TAB submitted to SBA a HUBZone application in which Richardson falsely stated that TAB’s principal office was located at 1010 Walnut Avenue NE in Canton, a location that was within a designated HUBZone area. TAB’s principal office was actually located in another area of Canton that was not within a HUBZone area, specifically 4534 Vliet Street SW, according to the information.

Richardson falsely represented in TAB’s application that the Vliet Street SW location was only a storage area for equipment and was not the company’s principal office location.  Richardson and TAB provided supporting information and documents to SBA, including a fake lease, to back up this false claim, according to the information. 

Based on Richardson’s false representations, SBA certified that TAB was HUBZone Program eligible and placed TAB on the government’s List of Qualified HUBZone Small Business Concerns, according to the information.

With this designation, Richardson and TAB received more than $34 million in contracts from the U.S. Army Corps of Engineers, the U.S. Coast Guard and the National Park Service between 2005 and 2012, according to the information.

This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Small Business Administration – Office of Inspector General; Defense Criminal Investigative Service; Department of Homeland Security- Office of Inspector General and the U.S. Army’s Criminal Investigation Division.

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

A federal grand jury returned a two-count indictment charging Myron A. Nash, age 39, of Canal Fulton, Ohio, with possession with intent to distribute cocaine and heroin, and being a felon in possession of a firearm and ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. 

The indictment alleges that on January 31, 2014, Nash possessed less than 500 grams of cocaine and less than five grams of heroin. 

The indictment further alleges that Nash possessed a Kel Tec 9mm handgun, as well as ammunition, having been previously convicted of crimes punishable by imprisonment for terms exceeding one year. 

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

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

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

Edwin Franco Rolffo-Zavala, 24, of Novato, California, was charged with sexual exploitation of a child,  transporting visual depictions of minors engaged in sexually explicit conduct, and travel with intent to engage in illicit sexual conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges that from on or about May 13, 2013, through on or about January 13, 2014, Rolffo-Zavala, used, persuaded, induced, enticed and coerced a minor, that is, a 13 year-old girl to engage in sexually explicit conduct, for the purpose of transmitting a live visual depiction of such conduct, and knowing and having reason to know that such visual depiction would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce. 

The indictment also charges that from on or about January 1, 2011, through on or about January 13, 2014, Rolffo-Zavala knowingly transported, using any means of interstate and foreign commerce and in and affecting interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct.  

The indictment also charges that on or about January 16, 2014, Rolffo-Zavala knowingly traveled in interstate commerce, from the State of California to the State of Ohio, for the purpose of engaging in illicit sexual conduct with a 14-year-old girl.

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

This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan.  The case was investigated by the Akron Office of the Federal Bureau of Investigation and the Medina City 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 federal grand jury returned a three-count indictment charging Brett L. Benson, 40, of Avon, Ohio, with two counts of bank robbery and one count of making a bomb threat, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Benson robbed two banks in Elyria, Ohio: Talmer Bank & Trust on March 19, 2014 and Dollar Bank on March 24, 2014. 

The indictment further alleges that Benson called in a bomb threat to the Elyria High School on the same date as the second bank robbery.

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

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

Three people from Stark County were charged in federal court with conspiring to launder money and operate illegal gambling businesses in Canton, Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

A two-count criminal information was filed charging Jerry Warren, age 70, of Canton, Tracie Warren-Pastore, age 45, of North Canton, and Yabacushyanei Bennett, age 45, of Canton, with one count of conspiracy to conduct an illegal gambling business and one count of conspiracy to launder money.

Prosecutors are seeking to forfeit more than $1.3 million in cash as well as four vehicles – a 2011 Jaguar XJ8, a 2011 Mazda CX-9, a 2008 Land Rover and a 2000 Porsche Boxter.

“This trio ran their own illegal casino in Canton, complete with 200 slot machines,” Dettelbach said. “Now the game is up, and they will be held accountable for their actions.”

“Federal laws that regulate the reporting of financial transactions are in place to detect and stop illegal activities,” said Kathy Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.  “IRS Criminal Investigation is committed to enforcing these laws and following the money, wherever it leads.”

“This case illustrates the need for vigilance in the enforcement of Ohio's Casino Control Act,” said Executive Director Matt Schuler of the state’s Casino Control Commission.  “There are only four legal casinos in Ohio; this was clearly an illegal gambling house."

Warren, Warren-Pastore and Bennett conspired together to operate gambling businesses from 2008 through May 2013, including the Nugget, which was located in Canton, according to the information.

The group operated illegal gambling businesses, including the Nugget, as casinos, offering more than 200 slot machines where the public could gamble. These slot machines included but were not limited to the Frog Prince, Pharaoh’s Fortune, Lucky Meerkats, Treasure Diver, Enchanted Kingdom and others, according to the information.

The businesses remained in substantially continuous operation and sometimes had gross revenues of $2,000 or more in a single day of operation, according to the information.

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

The investigation is being conducted by the Internal Revenue Service with assistance from the Ohio Bureau of Criminal Investigation and the Ohio Casino Control Commission.  The case is being prosecuted by Kevin Culum, Special Assistant United States Attorney. 

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 29-count federal indictment was filed charging three women for their roles in a tax fraud conspiracy in which they fraudulently claimed and received more than $436,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, IRS-Criminal Investigation Special Agent in Charge.

Indicted are Erica Harris, 32, and Shaunte Harris, 29, both of Toledo, and Latoya Gilmer, 29, of Detroit.  The charges relate to conspiracy to defraud the government with respect to claims and false, fictitious, or fraudulent claims from 2009 through April 2010. 

Harris, Gilmer and Harris approached individuals with little or no income and offered them a portion of the fraudulent tax refunds in exchange for their personal information and that of their children. Then the defendants filed false returns electronically, reporting false wages, false Social Security benefits and false 1099 withholding amounts typically exceeding $10,000, according to the indictment.

Collectively, they filed more than 40 false tax returns and received fraudulent returns totaling approximately $436,036, according to the indictment.

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

The investigating agency in this case is the Internal Revenue Service in Toledo.  The case is being handled by Assistant United States Attorney Alissa M. Sterling

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

A Lakewood man who worked at a tax-preparation business was charged with conspiring to file false income tax returns, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of the Cincinnati Field Office of Internal Revenue Service – Criminal Investigations.

Godrich Machuta, 34, was charged in a 39-count indictment with conspiracy to defraud the United States, making false claims, wire fraud and other charges. He is accused of preparing or assisting in the preparation of false tax returns in which false claims of more than $158,000 were made, according to the indictment.

Machuta worked for Cleveland-based Paglory Tax Services in 2010 and 2011. During that time, he and Mwale Kakusa conspired to fraudulently obtain funds from the United States by filing income tax returns with false, fictitious or fraudulent claims, according to the information.

Kakusa has pleaded guilty to preparing more than a dozen tax returns that made false refund claims of approximately $52,468. He awaits sentencing.

This case is being prosecuted by Assistant United States Attorney Justin J. Roberts following an investigation by IRS-CI. 

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

A three-count indictment was filed charging a Youngstown woman with 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, of Youngstown, Ohio, faces with 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

The indictment charges that Curtis, along with others made known to the Grand Jury but not indicted, 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. 

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

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

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

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

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

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury sitting in Cleveland, Ohio, returned a one-count indictment charging Roland Fink, age 40, of Youngstown, Ohio, with failure to register as a sex offender.

The indictment charges that from on or about January 20 to February 27, 2014, Fink failed to register as a sex offender as required under the Sex Offender Registration and Notification Act, after having traveled in interstate commerce.

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

The investigation preceding the indictment was conducted by the United States Marshals Service.  The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.

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.

Three men from the Mahoning Valley were each indicted on one count of being felons illegally in possession of firearms and ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The cases are not related.

Darryl L. Lee, 25, of Youngstown, Ohio, was in possession of a Kel-Tec, model PF-9, 9mm pistol, and ammunition, on or about January 30, 2014, despite Lee having been previously convicted of aggravated assault, in the Mercer County, Pennsylvania, Court of Common Pleas, according to the indictment.

Alex C. Green, age 28, of Campbell, Ohio, was in possession of a Raven Arms, model P-25, .25 caliber pistol, a DPMS, model A-15, .223 caliber rifle, and ammunition, on or about February 18, 2014, despite Green having been previously convicted of being a felon in possession of a firearm in the U.S. District Court for the Northern District of Ohio, and of felonious assault, in the Court of Common Pleas, Mahoning County, Ohio, according to the indictment.

Whittington R. Davis, age 27, of Youngstown, Ohio, was in possession of a Bryco Arms, model 48, .380 caliber pistol, and ammunition, on or about February 1, 2014, despite Davis having been previously convicted of possession of cocaine, in the Mahoning County, Ohio, Court of Common Pleas, according to the indictment.

The Lee case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Youngstown Police Department and the Adult Parole Authority.  The Green case was investigated by ATF and the Campbell Police Department. The Davis case was investigated by ATF and the Warren Police Department.

The cases are being prosecuted by Assistant United States Attorney David M. Toepfer.

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.

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 third person has been criminally charged for discharging brine and wastewater related to oil and gas well drilling into the Mahoning River, law enforcement officials announced.

Mark A. Goff, 46, of Newton Falls, Ohio, was charged with one count of making an unpermitted discharge in violation of the Clean Water Act.

The conduct took place between October 1, 2012 and November 12, 2012, according to the information.

The filing of the criminal information was announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Ohio Attorney General Mike DeWine, James Zehringer, Director of the Ohio Department of Natural Resources, Craig W. Butler, Director of the Ohio Environmental Protection Agency, and Randall K. Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency.

According to the information and related court documents:

Hardrock Excavating LLC is owned by Lupo and located at 2761 Salt Springs Road, in Youngstown, Ohio.  The company provides services to the oil and gas industry in Ohio and Pennsylvania, including the storage of brine and oil-based drilling mud.  There were approximately 58 mobile storage tanks at the facility and each holds approximately 20,000 gallons.

Lupo, who owns Hardrock, directed employee Goff to empty some of the waste liquid stored at the facility into a nearby wastewater drain on or about October 1, 2012, according to the information.

Lupo directed Goff to conduct this activity only after no one else was at the facility and only after dark, according to the information.

Goff, at the direction of Lupo, emptied some of the lighter phase of the waste liquid being stored at the facility into the nearby stormwater drain using a hose on numerous occasions over the next two months, according to the information.

The last time Goff emptied some of the lighter phase of the waste liquid being stored at the facility into the drain was on or about November 12, 2012.  In total, Goff emptied tanks at the direction of Lupo on approximately nine different nights, according to the information.

“Those who make it their business to harvest from under Ohio its great natural resources, have a responsibility to the men, women and children who drink its water, live on its land and breathe its air.  And they have a duty to follow the law,” Dettelbach said. “This defendant broke the law and must be held accountable.”

“Mark Goff is another individual who carried out orders to release contaminated brine into Ohio’s waterways. It is crucial to the safety of our communities that everyone involved in this heinous crime be held accountable for their actions,” DeWine said.  

“This incident is one of a small percentage of egregious environmental violations we see at Ohio EPA that must be prosecuted criminally,” Ohio EPA Director Craig Butler said. “This general disregard for the law will not be tolerated in Ohio and we will work with our partners at the local, state and federal agencies to make sure the responsible parties are held accountable. We especially appreciate the Federal Department of Justice quickly assisting Ohio in this case and applying its more stringent laws regarding Clean Water Act violations. ”

“Knowingly discharging toxic waste byproducts from drilling operations that ultimately flow into rivers has serious consequences for natural resources and local communities,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio.  “Actions like these threaten to turn America’s waterways into chemical dumping grounds.  Today’s charge should help protect the Ohio River watershed by deterring other would-be violators.”

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.

The statutory maximum for violating the Clean Water Act for individuals is three years in prison, one year of supervised release and a fine of $50,000 per day of violation or $250,000, whichever is larger.

If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offenses and the characteristics of the violations.  In all cases, the sentences will not exceed the statutory maximum and in most cases they 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 15-count criminal indictment filed charging a Solon man with defrauding his former employer out of nearly $1.5 million, law enforcement officials said.

John A. Miller, 53, was charged with one count of conspiracy to commit mail fraud, nine counts of mail fraud, three counts of tax evasion and two counts of money laundering in connection with a scheme to defraud Parker Hannifin Corp.

“This defendant is accused of running a scheme in which he stole nearly $1.5 million from his employer,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “This type of self-dealing is not fair to workers or shareholders and will not be tolerated.”

Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, said: “Mr. Miller put a lot of effort into orchestrating and maintaining this seven year fraudulent scheme. Law enforcement will continue efforts to follow the money trial to ensure financial fraudsters are brought to justice.”

“Fraud and embezzlement schemes harm everyone,” said Kathy Enstrom, Special Agent in Charge, IRS Cincinnati Field Office. “As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer financial harm.”

Miller worked at Parker Hannifin Corp. (PHC) for 25 years where he directed work to outside contractors.  In 2002, he approached his neighbor, Nancy Seaman, to do IT work for PHC, according to the indictment. 

To do this, Seaman established Digital Design Services, Inc., which she operated out of her residence in Solon. In 2004, Miller approached R.K. (not charged herein), who owned and operated a billing company in Pennsylvania which had previously been a subcontractor for PHC.  Miller requested that R.K. and his billing company prepare invoices and billings for PHC, and R.K. agreed to do so, according to the indictment.

Beginning around 2004, Miller engaged in a fraudulent scheme to increase the payment he was receiving from PHC by using subcontractors Seaman and R.K. to funnel payments to himself. He did his despite having a salaried position at PHC and without the knowledge or consent of PHC, according to the indictment.   

Miller did this by falsely inflating the invoices submitted by Digital Design and Seaman and by asking R.K. to process payments and to pay subcontractors as designated by Miller. Under this arrangement, Miller submitted invoices in the names of Miller’s wife and son, even though neither had done any of the work submitted in these invoices nor were they even aware that Miller was using their names to submit such billings to PHC, according to the indictment.

Miller caused a loss to PHC of approximately $1,489,494 between 2004 through 2011, according to the indictment.

Seaman was aware that additional amounts, over and above her Digital Design billings, were being sent to her. Miller instructed Seaman to pay these additional funds to him in cash, less a 30 percent commission to Seaman, according to the indictment. 

Seaman previously pleaded guilty in U.S. District Court to conspiring with Miller to conceal Miller’s tax liability from the Internal Revenue Service and to conspiring with Miller to commit wire fraud in a scheme to defraud Parker Hannifin.  She is awaiting sentencing. 

Miller is also charged with money laundering for using the funds he stole from Parker Hannifin Corporation to pay his tax liabilities to the IRS and to pay for his son’s tuition at Cornell University, according to the indictment. 

Miller is also charged with tax evasion for calendar years 2009 to 2011.  During the calendar year 2009, Miller received approximately $192,042 in taxable income, and owed approximately $30,568 in income tax; during the calendar year 2010, Miller received approximately $378,571 in taxable income, and owed approximately $93,745 in income tax; and during the calendar year 2011, Miller had received approximately $217,060 in taxable income, and owed approximately $43,488.00 in income tax, according to the indictment.

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations, in Cleveland, and is being handled by Assistant U.S. Attorney Christian H. Stickan.

If convicted, the defendants’ 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.

Joey Thomas Holt, 56, of New Middletown, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges that from on or about December 8, 2013, through on or about February 20, 2014, Holt 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 March 6, 2014, Holt possessed two computers, each 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 Youngstown Office of the Federal Bureau of Investigation.

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

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a one-count indictment charging Renee Brooks, age 57, of Mansfield, Ohio, with one count of theft of government funds.

The indictment alleges that from in or about July 1996, and continuing until in or about August 2011, Renee Brooks stole Social Security Disability Benefits in the amount of $92,081.53 from the United States Social Security Administration to which she was not entitled.  

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

The case is being prosecuted by Assistant U.S. Gregory C. Sasse, following investigation by agents of the Office of Inspector General of the United States Social Security Administration.

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

Charles McMillian, 46, of Cleveland, Ohio, was indicted today by a federal grand jury for failure to register and update registration as required under the Sex Offender Registration and Notification Act, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

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

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

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

An Akron physician and three of his employees were indicted for illegally prescribing hundreds of thousands of doses of painkillers and other pills to customers for no legitimate medical purpose, even after he learned some customers had died from overdose-related deaths, law enforcement officials announced today.

Adolph Harper, Jr., 63, of Akron, Adria Harper, 34, of Akron, Patricia Laughman, 51, of Barberton, Ohio, and Tequilla Berry, 35, of Akron, are all named in the 134-count indictment.

The charges include conspiring to traffic pharmaceutical drugs, drug trafficking and health care fraud.  Together, they distributed hundreds of thousands of doses of prescription medications -- including Oxycontin, Percocet, Roxicet, Opana and others – from Adolph Harper’s medical officers in Akron between 2009 and 2012, according to the indictment. 

Count 1 of the indictment charges all four defendants with conspiring to distribute addictive controlled substances, including prescription painkillers and anti-anxiety medication, outside the usual course of professional practice and without any legitimate medical purpose. 

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

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

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

Counts 2 through 83 charge Adolph Harper with individual distributions of Schedule II controlled substances including oxycodone, oxymorphone and methadone.

Counts 84 through 109 charge Adria Harper with individual distributions of “prescriptions” for Schedule II controlled substances that she wrote out for herself using Adolph Harper’s prescription pad and for “prescriptions” that she distributed to customers when Adolph Harper, Jr. was not in the office.

Counts 110 through 123 charge Patricia Laughman with individual distributions of “prescriptions” for Schedule II controlled substances that she wrote out for herself using Adolph Harper’s prescription pad.

Counts 124 through 130 charge Tequilla Berry with individual distributions of “prescriptions” for Schedule II controlled substances that she wrote out for herself in the name of an unknowing third party using Adolph Harper’s prescription pad.

Counts 131 through 134 charge Adolph Harper with health care fraud.  Specifically, these counts charge him with executing four separate schemes to defraud health insurance providers by (1) submitting insurance claims for services using a higher billing code than the service justified; (2) submitting insurance claims for unperformed services; (3) billing an insurance provider for a service after collecting a cash payment for the same service; and (4) causing the submission of insurance claims for “prescriptions” for controlled substances that were issued outside the usual course of professional practice and not for a legitimate medical purpose.

“The charges describe a defendant who is simply a drug dealer with a stethoscope who happens to work from a medical office instead of a street corner,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “His actions destroyed families and lives.”

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

“DEA is pleased to acknowledge the indictment of Dr. Adolph Harper,” said Geno Corley, Resident Agent in Charge of the Drug Enforcement Administration’s Cleveland office. “This case was initiated by the Akron Police Department and investigated by FBI, Health and Human Services with assistance from the DEA Cleveland Resident Office, Ohio State Board of Pharmacy and the State of Ohio Medical Board.  This arrest of Dr. Harper and his co-conspirators is another important step forward in the fight against the improper prescribing of dangerous and addictive prescription drugs.” 

“This is great example of how state and federal collaboration can work to combat prescription drug abuse,” said Kyle Parker, executive director of the Ohio State Pharmacy Board.

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

If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, 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.

A Copley man pleaded guilty to a 14-count criminal information for operating a fraudulent investment scheme which caused investors to lose approximately $1.8 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Anthony Davian, 34, pleaded guilty to one count of securities fraud, two counts of mail fraud, four counts of wire fraud, and seven counts of money laundering. He is scheduled to be sentenced July 2.

“This defendant deceived clients to line his own pockets,” Dettelbach said. “We will continue to aggressively pursue cases in which investors are cheated out of their savings.”

The information charges that between July 2008 and July 2013, Davian used his hedge fund, Davian Capital Advisers, LLC, to promote and sell securities to at least 20 investors across several states, resulting in $1.8 million in overall investor loss. 

Davian purported to sell securities in the form of shares in the various funds he created and controlled, including Davian Capital, Rubber City Gravity, Rubber City Pure Alpha, Cleveland Precious Metals Fund, and others. Instead, he used the investors’ monies to redeem earlier investors, enrich himself and pay off personal expenses, such as the purchase of an Audi Q7 Prestige, according to the information.

The investigation revealed that Davian cajoled investors’ into giving him hundreds of thousands of dollars by claiming to manage hundreds of millions of dollars to make himself appear more sophisticated than he really was and by falsifying client account statements, according to the information.

This case is being prosecuted by Assistant U.S. Attorneys Christos N. Georgalis, Matthew Cronin and James Morford following an investigation by agents of the United States Secret Service, the Internal Revenue Service and the United States Postal Service.

The former owner of a Youngstown-based company pleaded guilty to violating the Clean Water Act by discharging brine into a tributary of the Mahoning River, said Steven M. Dettelbach, the United States Attorney for the Northern District of Ohio.

Benedict W. Lupo, 63, of Poland, Ohio, is scheduled to be sentenced on June 16.

The conduct took place between Nov. 1, 2012 and Jan. 31, 2013, according to court documents.

“Those who make it their business to harvest from under Ohio its great natural resources, have a responsibility to the men, women and children who drink its water, live on its land and breathe its air. And they have a duty to follow the law," Dettelbach said. "The defendant in this case has admitted ordering others to break the law, and he must be held accountable.”

“Ben Lupo put his own business interests ahead of the health and safety of our citizens, natural resources and wildlife by repeatedly releasing or ordering the release of his company’s brine waste into the Mahoning River. He will now be held accountable for this terrible crime,” said Ohio Attorney General Mike DeWine.

“As natural gas exploration continues, it must be done in a way that ensures the drilling byproducts are treated and disposed of safely and legally,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio.  “This case demonstrates that if companies and their owners skirt environmental laws, EPA will hold them accountable.”

“This incident is one of a small percentage of egregious environmental violations we see at Ohio EPA that must be prosecuted criminally,” Ohio EPA Director Craig Butler said. “This general disregard for the law will not be tolerated in Ohio and we will work with our partners at the local, state and federal agencies to make sure the responsible parties are held accountable. We especially appreciate the United States Department of Justice quickly assisting Ohio in this case and applying its more stringent laws regarding Clean Water Act 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 an employee 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 employee to conduct this activity only after no one else was at the facility and only after dark.

An employee, at the direction of Lupo, 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.

The statutory maximum for violating the Clean Water Act is for individuals is three years in prison, one year of supervised release and a fine of $50,000 per day of violation or $250,000, whichever is larger.
Michael Guesman, 35, of Cortland, Ohio, previously pleaded guilty to his role in the crime and was sentenced last week to three years of probation and 300 hours of community service. The criminal case against Hardrock Excavating LLC remains pending.

The case remains under investigation.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a criminal information was filed against Rene Opre, age 55, of Toledo, Ohio. 

The charges relate to filing a false report on behalf of Workers United SEIU, Local Union 323 with the U.S. Department of Labor. 

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 Office of Labor-Management Standards, U.S. Department of Labor, Cleveland, Ohio.  The case is being handled by Assistant United States Attorney Gene Crawford.

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

A Sheffield Lake man was charged with conspiracy to commit mail fraud for his role in defrauding the Cleveland Clinic out of more than $150,000, 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.

Randy Breininger, 43, was the Institute Administrator within the Anesthesiology Institute at the Cleveland Clinic. Richard Zukowski owned and operated an independent recruiting firm called the David Anthony Group, Inc. or DAG. The company maintained a contract with the Cleveland Clinic from 2008 through January 2013 to help locate and recruit certified registered nurse anesthetists to work within the Clinic’s Anesthesiology Institute, according to the criminal information.

The Cleveland Clinic paid DAG commissions, equal to a percentage of the first year annual salary, for each successful certified registered nurse anesthetist recruited by DAG, according to the information.

Breininger submitted invoices related to the commissions for people purportedly recruited by DAG. An individual identified as J.T. was the Institute Finance Director for the Anesthesiology Institute at the Cleveland Clinic. J.T. approved invoices related to commissions for individuals purportedly recruited by DAG, according to the information.

Breininger and Zukowski conspired from about June 15, 2010 through around January 2013, according to the information.

Breininger provided names, dates of invoice and DAG commission figures to Zukowski for 10 individuals. Breininger instructed Zukowski to submit a recruiting invoice through DAG for each individual whose name Breininger provided. At no point did Zukowski or DAG recruit the 10 individuals for employment at the Cleveland Clinic, according to the information.

Breininger requested J.T. authorize the 10 invoices submitted by Zukowski. J.T. authorized the payments and routed the approved invoices for payment at the Cleveland Clinic. The Cleveland Clinic mailed Zukowski eight checks which totaled more than $150,00, according to the information.

Breininger then asked Zukowski to return half the money Zukowski received as payment for the invoices. In order to fulfill his tax obligations for the eight checks, Zukowski transferred only about one-third of the proceeds to Breininger. Zukowski withdrew approximately $60,000 in cash, in increments between $1,500 and $2,000, and hand delivered the cash to Breininger in envelopes, according to the information.

Zukowski pleaded guilty last year to one count of conspiracy to commit mail fraud and is scheduled to be sentenced in May.

This case is being prosecuted by Special Assistant U.S. Attorney Derek Kleinmann following an investigation by the Federal Bureau of Investigation.

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