Northern District of Ohio

Memorial Hospital (Memorial), an Ohio nonprofit corporation that operates an acute care hospital in Fremont, Ohio, has agreed to pay $8.5 million to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute by engaging in improper financial relationships with referring physicians, the Justice Department announced today.

“Improper financial relationships between health care providers and their referral sources can undermine physicians' judgment about patients' true health care needs and drive up health care costs for everyone,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery.  "The Justice Department is firmly committed to recovering the taxpayer dollars lost due to these arrangements and making sure that all health care providers follow the rules.” 

The Anti-Kickback Statute and the Stark Statute restrict the financial relationships that hospitals may have with doctors who refer patients to them.  The settlement announced today involved allegations that financial relationships that Memorial had with two physicians – a joint venture between Memorial and a pain management physician and an arrangement under which an ophthalmologist purchased intraocular lenses and then resold them to Memorial at inflated prices - violated statutory requirements.  These issues were disclosed to the government by Memorial.

"Physician referrals should be made exclusively based on what's best for the patient, not on financial relationships," said U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach.  "We hope that this settlement will once again help drive that message home."

The improper referrals at issue in this matter included Medicaid patients.  Medicaid is funded jointly by the states and the federal government.  The State of Ohio, which paid for some of the Medicaid claims at issue, will receive $600,383 of the settlement amount.

“The price of such arrangements can be very costly to the nation’s health care system, taxpayers and provider organizations,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson.  “So, we are pleased that Memorial stepped forward to disclose these improper financial relationships and is working to avoid future occurrences.”

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.

This case was handled by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Northern District of Ohio and the Department of Health and Human Services Office of Inspector General.  The claims settled by this agreement are allegations only, and there has been no determination of liability.

A criminal indictment was returned this week charging Mark O. Wittenmyer, age 54, of Holland, Ohio, with one count of conspiracy to commit wire fraud, wire fraud, and five counts of money laundering, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. 

The indictment alleges that Wittenmyer fraudulently obtained a $500,000 consultant’s fee by representing that he could deliver several interest-only government bonds to a group of investors. 

Wittenmyer also falsely alleged that he could recruit institutional buyers for the bonds that would pay the group of investors a substantial premium at the conclusion of the transaction.  The investor group was falsely advised by Wittenmyer that he had successfully delivered the bonds, and therefore Wittenmyer was entitled to a $1 million consultant’s fee, according to the indictment.

When a representative of the investor group learned that the bonds had not been delivered, Wittenmyer threatened to file a lien against the bonds to prevent their sale.  The investor group then paid $500,000, in a wire transfer on November 8, 2013, to induce Wittenmyer not to file a lien.  Wittenmyer directed the funds to an account at PNC Bank that was controlled by an associate, and from that account, Wittenmyer and his associate spent the funds, according to the indictmet.

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.  The case is being prosecuted by Assistant United States Attorneys James V. Moroney and Gene Crawford.

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 Ashland man was sentenced to five years in prison for his role in a holding woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor, law enforcement officials said today.

“The conduct laid out in this case is almost incomprehensible,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “We will continue to prosecute human trafficking cases in all their various forms.”

"The manner in which this young lady and her small child were treated during two years of involuntary servitude is beyond disturbing," said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland office. "The FBI hopes that the victims in this investigation can continue to heal and lead their own lives now that Daniel Brown and the others have been brought to justice." 

Daniel J. Brown, 34, previously pleaded guilty to one count of conspiracy. He admitted that he conspired with Jordie L. Callahan, Jessica L. Hunt and Dezerah L. Silsby from 2010 through 2012 to establish and continue a pattern of domination and control over their victims, identified only as S.E. and B.E.

Together, they used a combination of violence, threats, sexual assaults, humiliation, deprivation and monitoring to establish and continue a pattern of domination and control over S.E. and B.E., according to court documents.

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

All four people have been found guilty of crimes related to the case. Silsby is scheduled to be sentenced later this month while Callahan and Hunt are scheduled to be sentenced in July.

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

A three-count indictment was filed charging the former director of the Cleveland Job Corps Center with withholding more than $872,000 in federal taxes from employees but never paying the money over to the Internal Revenue Service, law enforcement officials said.

Clark V. Hayes, 53, of Richfield, Ohio, was the owner of Applied Technology Systems, Inc. or ATSI, in Cleveland. The U.S. Department of Labor contracted with ATSI to operate the Cleveland and Jacksonville Job Corps Centers, according to the indictment.

“This defendant was hired to make sure struggling workers learned new job skills, but instead used it as an opportunity defraud his workers and the government,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

“Business owners have an inescapable obligation to withhold income taxes for employees and remit those taxes to the IRS,” said Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati field office. “The failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation vigorously pursues those who violate employment tax laws.”

Under the terms of the agreement, ATSI staffed and maintained the centers, subject to reimbursement by the Department of Labor for their costs based on a budget. The reimbursable costs included the wages ATSI paid to the centers’ employees, including amounts to be withheld and paid over to the IRS, according to the indictment.

The Labor Department paid ATSI more than $15.5 million between from on or about July 1, 2010, through August 16, 2011, according to the indictment.

For the quarter ending Sept. 30, 2010, Hayes withheld but did not pay over $138,208. For the quarter ending Dec. 31, 2010, Hayes withheld but did not pay over $483,495. For the quarter ending March 31, 2011, Hayes withheld but did not pay over $250,307, according to the indictment.

This case is being prosecuted by Assistant U.S. Attorneys Vasile Katsaros and Antoinette T. Bacon following an investigation by the Internal Revenue Service – Criminal Investigations and the Department of Labor -- Office of Inspector General.

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

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

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a one-count indictment charging Clint A. Hood, 49, of Niles, Ohio, with growing marijuana, and possessing marijuana with the intent to distribute.

The indictment alleges that on October 2, 2012, Hood grew and possessed more than 100 marijuana plants.

The case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould, following investigation by agents of the Drug Enforcement Administration.

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 federal grand jury in the Eastern District of Michigan today returned an indictment charging Ronnie Edward Duke, age 46, of Fenton, Michigan, with assaulting, resisting, or impeding certain officers or employees, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that on February 24, 2014, in the Eastern District of Michigan, Duke forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with an Assistant United States Attorney in the Eastern District of Michigan. 

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.

Because of the recusal of the U.S. Attorney’s Office for the Eastern District of Michigan, this investigation is being handled by the U.S. Attorney’s Office for the Northern District of Ohio.  The case is being prosecuted by Assistant United States Attorneys Matthew B. Kall and Thomas P. Weldon, following investigation by the Federal Bureau of Investigation and U.S. Marshals Service.

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

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced an Indictment was filed against Alejandro Morillo-Bedolla, age 36, of Mexico.  

The indictment charges Morillo-Bedolla with unlawful reentry with an aggravated felony into the United States on March 29, 2010 and February 7, 2014.

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

The investigating agency in this case is the Department of Homeland Security, Immigration and Customs Enforcement, Cleveland, Ohio.  The case is being handled by Assistant United States Attorney Ava R. Dustin.

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.

Four men from Northeast Ohio were charged in a five-count indictment with engaging in a conspiracy to defraud the food stamp and Women, Infants and Children programs from a store on Detroit Avenue in Cleveland, law enforcement officials said.

Indicted are: Bashir Mohamed, age 31, of Cleveland; Yusuf Maalin, 45, of Cleveland; Ali Shire Ahmed, 54, of North Olmsted, Ohio; and Farah Hasan Warsame, 27, of Cleveland. 

The indictment alleges that Mohamed, Maalin, Ahmed, and Warsame conspired to illegally allow customers to redeem food stamp and WIC benefits at Bashir Market, 8401 Detroit Avenue,   in exchange for cash, ineligible items, and credit towards overseas wire transfers. 

Mohamed, Maalin, and Warsame allegedly worked at the market and redeemed the food stamp and WIC benefits for the cash, unauthorized items, or credit towards overseas funds transfers.  The credit for overseas funds transfers was tracked on a ledger kept at the market, according to the indictment.

Mohamed or Maalin would then provide Ahmed with cash or a check that Ahmed would take to Columbus, Ohio, to send overseas by wire transfer.  The indictment alleges that the conspiracy involved the attempted redemption of approximately $670,612 in food stamp and WIC benefits, according to the indictment.

The conspiracy took place between 2008 and last year, according to the indictment.

In addition to the conspiracy charge, Mohamed, Maalin, Ahmed, and Warsame are also charged with counts of food stamp fraud, unlawful food stamp redemptions, and WIC fraud. Ahmed is charged with one count of money laundering.

The indictment results from an investigation conducted by the United States Department of Agriculture, Office of the Inspector General; the Federal Bureau of Investigation; and Department of Homeland Security, Homeland Security Investigations. 

The case is being handled by Assistant United States Attorneys Matthew W. Shepherd and M. Kendra Klump. 

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.

Four people from Buffalo, New York, were indicted on charges that they used fraudulent credit cards to buy $19,500 worth of gift cards from a Walmart and Rite Aid in Cleveland, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Indicted are Ricky Butler, 37, Cherise Luper, age 22, Brianna Davis, age 20, and Larry Cross, age 22. They face charges of access device fraud, aggravated identity theft, unlawful possession of a document-making implement, and conspiracy to commit the same.

The indictment alleges that the four individuals fraudulently obtained credit cards that they later used to purchase gift cards valued at approximately $19,500 from the Walmart stores at 3400 Steelyard Drive and 10000 Brookpark Road and the RiteAid store at 10502 St. Clair Avenue, all in Cleveland, as well as two stores in New York.

It further alleges that the defendants acquired and produced counterfeit identification cards that they used in the identity-theft and access-device scheme. 

In all, they obtained 39 gift cards, each worth $500, according to the indictment.

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

The case is being prosecuted by Assistant U.S. Attorneys M. Kendra Klump, Robert W. Kern, and James L. Morford following an investigation by the United States Secret Service and the Bedford 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.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a one-count indictment charging William Powell, 23, of Wilmington, Delaware, with passing counterfeit United States currency.

The indictment alleges that Powell passed counterfeit $100 Federal Reserve Notes.  

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. Gregory C. Sasse, following investigation by agents of the United States Secret Service.

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

A federal jury convicted an Ashland couple of engaging in a labor trafficking conspiracy and other crimes related to them holding woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor for them, 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.

Jordie L. Callahan, 27 and Jessica L. Hunt, 32, were convicted following a three-week trial before U.S. District Judge Benita Y. Pearson. Callahan and Hunt were both convicted on one count each of conspiracy to violate laws; forced labor and acquiring a controlled substance by deception.

They are scheduled to be sentenced in July.

“These defendants inflicted unspeakable cruelty upon this mother and her child,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “This case provides another stark reminder that human trafficking takes place all around us, and that we need to be better neighbors to one another.”

“We are pleased with the guilty verdict delivered today for the incomprehensible treatment and involuntary servitude of another human being and her small child,” Anthony said. “The FBI will continue to partner with other law enforcement agencies to aggressively investigate and bring to justice those individuals that force others into unlawful labor or sex practices.”

Dezerah L. McGuire (formerly Silsby), 32, and Daniel J. Brown, 34, both of Ashland, previously pleaded guilty to crimes related to the conspiracy. Both are scheduled to be sentenced later this month.

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

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

According to court documents and trail testimony:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The manager of the U.S. Postal Service’s Vehicle Maintenance Facility in Cleveland was charged with taking cash bribes in exchange for awarding business and contracts from the Postal Service, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Monica Weyler, Special Agent in Charge of the U.S. Postal Service’s Office of Inspector General Eastern Area Field Office.

Kevin Hood, 45, of Richmond Heights, was arrested Thursday and charged with wire fraud and honest services wire fraud.

“Some defendants appear to still have not gotten the message that accepting bribes has no place in Northeast Ohio,” Dettelbach said. “We will continue to work to stamp out public corruption in all its forms.”

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

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

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

The owner estimated he paid between $15,000 and $17,000 to Hood to date. He also estimated he provided up to $8,000 in free labor on Hood's personal vehicles, according to the complaint.

The owner stated Hood told him this was part of the deal in the owner receiving Postal Service work, according to the complaint.

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

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

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

This case is being prosecuted by Assistant U.S. Attorneys Miranda Dugi and Antoinette T. Bacon following an investigation by special agents of the U.S. Postal Service’s Office of Inspector General.

Robert A. Anderson, 68, of Lucas, Ohio, was charged with producing, 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 January 1, 2003, through on or about April 26, 2011, Anderson did use, persuade, induce, entice and coerce two minors to engage in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced or transmitted using materials that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer. 

Anderson is further charged with knowingly receiving and distributing, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct, possessing a SanDisk 64GB thumb drive and an HP Pavilion desktop computer that contained child pornography on January 21, 2014, and knowingly attempting to destroy, damage, waste, dispose of, transfer, or otherwise take any action, involving three SanDisk thumb drives, for the purpose of preventing or impairing the government’s lawful authority to take such property into its custody or control during the execution of a federal search warrant.

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 Department of Homeland Security Investigations, Cleveland Office.

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

A Lakewood man was indicted on three counts for his role in a conspiracy to defraud a now-failed credit union out of $3.7 million, some of which he used to buy and sell a property in downtown Cleveland, law enforcement officials said.

Sato Satka, 65, was indicted on one count each of conspiracy, bank fraud and bank bribery.

Satka conspired with others, including Anthony Raguz, the former Chief Operating Officer of the St. Paul Croatian Federal Credit Union (SPCFCU), to defraud the credit union. Satka paid bribes and kickbacks to Raguz for using his position at the credit union to approve numerous loans to Satka, and the entities he controlled and associates, according to the indictment.

From 1999 through 2004, Satka, his family members and businesses he controlled received more than $4.4 million in loan proceeds from SPCFCU, but little or no legitimate monthly payments were made to the credit union. As a result, the loans were in default, but in order to avoid detection from the credit union board, Raguz ordered “resets” to make it appear the loans were not in default, according to the indictment.

Satka controlled several enterprises, including F&S Satka Enterprises LLC, Sako Satka Parking West 3, Satka Parking Summer, Satka Parking Bolivar, Satka Parking Prospect and Titanic II, according to the indictment.

In October 2003, he purchased a commercial real estate property at 1350 West 3rd Street, Cleveland, for $460,000, according to the indictment.

J.P. is a person known to the Grand Jury but not charged herein. He purportedly controlled several non-operating entities, including: Metropolitan Restaurant Systems, Buckeye Cartage, Play Magazine, Celebrity Limousine, Victor/John Model & Talent, Jay Kay Records, and others, according to the indictment.

Around November 2004, Satka recruited J.P. to apply for multiple fraudulent loans from SPCFCU. On Nov. 5, 2004, approximately 13 months after Satka purchased the West 3rd Street property for $460,000, he sold it to J.P.’s company, Metropolitan Restaurant Systems, for $3 million, according to the indictment.

To induce Raguz to approve J.P.’s loan in November 2004, Satka handed Raguz a brown paper bag filled with $90,000 in cash and stated the money was for the approval of J.P.’s loan so that those proceeds could be used to settle Satka’s loan obligations to SPCFCU, according to the indictment.

Raguz proceeded to issue approximately $3.7 million in loans to 10 entities controlled by J.P., of which approximately $3.6 million was used to pay off loan balances on accounts held by Satka, his relatives or businesses he controlled. J.P. made no legitimate attempts to repay any of the loans and SPCFCU incurred a loss of $3.7 million, according to the indictment.

SPCFCU, located in Eastlake, was placed into conservatorship by the National Credit Union Administration on April 23, 2010. One week later, the NCUA liquidated SPFCFU and discontinued its operations after determining the credit union was insolvent. At that time, SPCFCU served about 5,400 members and was believed to have assets of approximated $239 million.

About two dozen people, including Raguz, have been convicted of crimes for conduct that led to the credit union’s collapse.

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.

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

This case is being prosecuted by Assistant U.S. Attorney Bridget M. Brennan following an investigation by the Cleveland office of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.

A 14-count criminal information was filed charging a Copley man with 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, was charged with one count of securities fraud, two counts of mail fraud, four counts of wire fraud, and seven counts of money laundering.

“This defendant took advantage of his clients’ trust to steal from them and live the high life,” 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.

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

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

A federal grand jury returned a two-count indictment charging Benny Lee Freeman, 35, of Ravenna, Ohio, with being a felon in possession of firearms and ammunition, and with possession with the intent to distribute marijuana, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Count 1 of the indictment charges that on or about December 23, 2013, Freeman was in possession of a Walther, model P22, .22 caliber pistol, a Ruger, model 77/22, .22 caliber rifle, and ammunition, after being previously convicted of Trafficking in LSD, in the Geauga County Court of Common Pleas, and Possession of Marijuana for Sale, in the Tehama County Superior Court in the State of California.

Count 2 of the indictment charges that on or about December 23, 2013, Freeman possessed with the intent to distribute marijuana.

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 Portage County Drug Task Force.  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.

A grand jury returned a one-count indictment charging Leevern Coleman, 43, with manufacturing counterfeit United States currency, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Coleman manufactured counterfeit $10 Federal Reserve notes, counterfeit $20 Federal Reserve notes, and counterfeit $50 Federal Reserve notes.  Forfeiture of equipment used to manufacture the counterfeit United States currency is also sought.

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. Gregory C. Sasse, following investigation by agents of the United States Secret Service.

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

A grand jury returned a three-count indictment charging Eric Castillo, 33, of Lorain, with one count of bank robbery and two counts of robbery affecting interstate commerce, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Castillo robbed the Chase Bank, 2232 Fairless Drive, Lorain, Ohio, a federally insured financial institution, on January 18, 2014. 

He is also accused of robbing CommStar Community Credit Union, 5609 West Erie Avenue, in Lorain, on January 8, 2014, and Kwik Mart convenience store at 3155 Pearl Avenue, in Lorain, on January 25, 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 Lorain 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.

A Cleveland woman was indicted today by a federal grand jury for theft of public money and false statements to a federal agency related to the theft of more than $37,000 in Social Security funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Zulma Rullan, 47 is accused of submitting false statements to the Social Security Administration on behalf of her daughter and herself, claiming Social Security benefits to which neither woman was entitled.  The alleged theft of Social Security funds occurred between 2005 and 2013 and totaled approximately $37,427.78, according to the indictment.

The United States Social Security Administration -- Office of the Inspector General and the United States Department of Agriculture -- Office of the Inspector General conducted the investigation.  The case is being prosecuted by Assistant United States Attorney Miranda Dugi.      

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

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

A federal grand jury returned a four-count indictment charging Desean R. Harbin, 32, of Akron, with possession with intent to distribute and distribution of heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. 

The indictment alleges that on October 31, November 12, December 16, and December 19, 2013, Harbin possessed and distributed amounts of heroin. 

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

The investigation preceding the indictment was conducted by the Drug Enforcement Administration and the Akron Police Department.  The case is being prosecuted by Assistant United States Attorney Linda H. Barr.

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

The former director of the Cleveland and Dayton VA Medical Center pleaded guilty today to a scheme to enrich himself by working as a consultant for, and taking money and other things of value from a design firm bidding on VA jobs and sharing confidential information about construction projects while still employed by the VA, law enforcement officials said.

William D. Montague, 61, of Brecksville, pleaded guilty to 64 counts, including Hobbs Act conspiracy, conspiracy to commit honest services mail fraud, violating the Hobbs Act, money laundering, multiple counts of wire fraud, mail fraud, disclosing public contract information and other charges.”

Montague is scheduled to be sentenced on May 20. He agreed to pay more than $390,000 to satisfy restitution and forfeiture requirements

 “As a Veterans Affairs Medical Center Director, William Montague misled staff and misused his position to enrich himself and businesses pursuing contracts with the agency,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “We are pleased with the acceptance of responsibility by Mr. Montague, along with the significant forfeiture amount to be returned to the Department of Veteran's Affairs.”

“Today's guilty plea is the result of a two-year investigation conducted by Special Agents of the Cleveland Veterans Affairs Office of Inspector General and the Federal Bureau of Investigation," said Gavin McClaren, U.S. VA OIG, Resident Agent in Charge, Cleveland. “We will continue to protect taxpayers against those who would enrich themselves at the expense of our nation’s veterans.”

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

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

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

Montague secretly used his position as Dayton VA Medical Center director to enrich himself and his designees (including House of Montague, a financial services company Montague operated) by soliciting and accepting gifts, payments and other things of value from Business 75 in exchange for favorable official actions, according to the indictment.

Montague solicited money and a consulting contract from Business 75 in exchange for information related to VA contracts and projects, which would benefit Business 75, Business 75’s principal and their designees, according to the indictment.

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

For example, on March 1, 2011, Business 75 issued a $20,000 check payable to Montague, which he deposited into the House of Montague’s account. Ten days later, Business 75’s principal sent an email to some employees with Montague’s consulting agreement explaining: “His job is to help us bring in more work from the VA, in part by helping us access key decision makers,” according to the indictment.

On March 14, 2011, Business 75’s principal sent another email to some employees stating that Business 75 will end the currect “$15 [million VA] IDIQ contract with just slightly over $12M in sales. $3M in fee, therefore, will be left on the table…[O]ne of MONTAGUE’s jobs will be to fill up the bucket by directing task orders toward our contract, Going forward, we have two $15M buckets to fill (Central and Eastern regions). That’s a lot of shoveling to get to $30M…BILL has the relationships to help us maximize the contracts…On the VA ‘major construction’ front here is the list of medical centers and their approximate construction cost in the pipeline: West Los Angeles, CA: $750M; San Francisco, CA: $125M, Reno, NV: $115M, Alameda, CA: $225M. Montague told us about these before they were advertised, which has allowed us to get an early start in developing the team. If we bring him on board, he can help us pull in one or two of these large projects,” according to the indictment.  

On May 26, 2011, Montague travelled to Washington DC on official VA business. On June 17, 2011, he caused to be submitted a government expense report seeking reimbursement for $1,204 for hotels, parking, per diems and other expenses. On June 12, 2011, Montague caused to be sent a $2,741 invoice to Business 75 for “consulting services” for work performed at “Wash/Cleve/Dayton.” The invoice included $211 for hotel and $30.60 for hotel taxes incurred on May 26, 2011, according to the indictment.

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

Nineteen people were indicted in federal court for their roles in a conspiracy to traffic large amounts of heroin, crack cocaine and prescription pills in Marion, Ohio.

The unsealing of the 72-count indictment was announced today by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio; Ohio Attorney General Mike DeWine; Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, Marion Police Major William Collins, Marion County Sheriff Tim Bailey and Marion County Prosecutor Brent Yager.

The indictment details a two-year conspiracy in which heroin, crack cocaine, Percocet, Ritalin, Xanax and Vicodin were brought from Detroit and Fort Wayne, Indiana, to Marion, where the drugs were sold to dozens of people, including juveniles.

Indicted are: Allen Graves, 46, of Detroit; Martez Montgomery, 22, of Detroit; Terrance Lombard, 39, of Eastpoint, Mich.; Edward Hearn, 40, of Detroit; Darryl McFadden, 53, of Detroit; Jeronne White, 33, of Marion;  Christopher Prince, 20, of Detroit; Danni Childers, 21, of Marion; DeCarlos Bates21, of Hamtramck, Mich.; DeVonta Adams21, of Detroit; Jason Graves, 22, of Detroit; Marniece Love, 22, of Hazel Park, Mich.; Brittany Payne, 19, of Marion; Marcus Benson, 34, of Harper Woods, Mich.; Greg Burkett, 56, of Marion; Darrell Jacobs, 38, of Caledonia, Ohio; Danielle Sullivan, 23, of Marion; Steven Lester, 48, of Marion, and Abbee Heine, 20, of Marion.

“Our state has been flooded with heroin and diverted prescription pills, which have been accompanied by a wave of death and addiction,” Dettelbach said. “These arrests represent a joint law-enforcement effort to choke off the supply of drugs to our region.”

Anthony said: “This interstate drug trafficking organization brought danger and violence to the community through multiple shootings, overdoses and continued addiction for citizens in Marion. The FBI along with the numerous agencies that brought this group to justice will continue collaborative efforts to disrupt, dismantle and prosecute drug traffickers.”

“MARMET’s battles with traffickers from Detroit have been well documented,” said Marion Police Major William Collins. “We want this to be an example for other trafficking organizations that if they choose Marion as the place to peddle their poison, they will do real prison time.”

“Drug abuse devastates lives and tears apart families, and the individuals who are now facing charges have played a direct role in fueling addiction,” said Attorney General DeWine.  “We are proud to have assisted with this case through the work of our BCI crime lab, and we will continue to work together in the future to prevent drug abuse and trafficking in this state.”

Marion County Sheriff Tim Bailey said: “Drugs come into our community through many means and it takes and will continue to take resources from all agencies to continue the fight against the drug problem and other crimes in our community to help keep our residents and future residents of our community safe.”
Montgomery and Graves obtained heroin, crack cocaine and prescription drugs from Lombard, Hearn, Benson, McFadden and other suppliers in Detroit and Fort Wayne. They also recruited friends and family members in Detroit to travel to Marion to distribute the drugs, according to the indictment.

Montgomery and Graves, with the assistance of Heine, rented homes in Heine’s name at 438 1/2 North Prospect Street and 323 Mound Street, in Marion, for the purpose of distributing heroin, crack cocaine and prescription drugs. Childers also rented the house at 238 Park Boulevard in Marion for the purpose of distributing the drugs, according to the indictment.

Lester, as part of the conspiracy, allowed Graves and Montgomery to register vehicles in his name to avoid suspicion of law enforcement. Lester also routinely drove Graves from Marion to Detroit and back to transport drugs and drug proceeds, according to the indictment.

Prince, White, Bates, Adams, Love, Jason Graves, a juvenile and others also shared a “community telephone” which they all used to communicate with drug customers and suppliers, according to the indictment.

Prince, White, Bates, Adams, Love, Jason Graves, Lester, a juvenile and others shared and used residences rented by Allen Graves, Montgomery, Heine and Childers for the purpose of storing and distributing heroin, crack cocaine and prescription drugs, according to the indictment.

The indictment goes on to detail scores of transactions, phone calls and other actions related to their sale and distribution of drugs.

This case is the result of an investigation by the Federal Bureau of Investigation – Cleveland, Detroit and Indianapolis Field Offices, the MARMET Drug Task Force (comprised of members of the Marion Police Department, and Marion County Sheriff’s Office), the METRICH Drug Task Force, the Ohio Attorney General’s Office, the Marion County Prosecutor’s Office, the Drug Enforcement Administration and the Ohio State Highway Patrol. It is being prosecuted by Assistant United States Attorneys Joseph M. Pinjuh and Alissa Sterling.

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 guilt beyond a reasonable doubt.

A Youngtown man was indicted on charges related to operating a crack house and having a firearm and silencer despite previously being convicted of a felony, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Deangelo Young, age 39, was indicted on one count each of maintaining a residence for distributing crack cocaine, being a felon in possession of firearms and ammunition, and possession of a firearm not registered to him in the National Firearms Registration and Transfer Record.

"We will continue to prosecute those who have firearms despite previous convictions," Dettelbach said.

Count 1 of the indictment charges that in or about August 2013, Young maintained a residence on East Chalmers Street in Youngstown, Ohio, for the purpose of distributing crack cocaine.

Count 2 of the indictment charges that on or about August 29, 2013, Young possessed a Ruger Mark I, .22 caliber pistol; a Ruger SR22, .22 caliber pistol; a Charter Arms Undercover, .38 caliber revolver, and ammunition, after having been previously convicted of Trafficking in Cocaine and Possession of Cocaine in the Mahoning County Common Pleas Court.

Count 3 of the indictment charges that on or about August 29, 2013, Young possessed a firearm with a silencer, not registered to him, as required by law.

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 Youngstown Police Department.  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.

An Elyria man was convicted of human trafficking, drug crimes and obstruction of justice after forcing four females, including a 16-year-old girl, to have sex for money, law enforcement officials said.

Jeremy Mack, 38, of Elyria, was found guilty by a jury on all nine counts following a weeklong trial. U.S. District Court Judge Sara Lioi scheduled sentencing for May 29.

“With today's verdict, Jeremy Mack's time roaming our community and preying on the most vulnerable will finally come to an end,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

“The FBI is pleased with the guilty verdict for the despicable acts committed by Jeremy Mack.,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “Thankfully, Mr. Mack will not be able to prey on and victimize children from where he is -- behind bars.”

“This is an example of local police and federal law enforcement working together to make our community safer,” said Elyria Police Chief Duane Whitely.

Ashley Onysko, 24, of Avon Lake, previously pleaded guilty to charges related to her role in the conspiracy.

Between December 2012 and April 9, 2013, Mack and Onysko conspired together to provide heroin or cocaine to four females and then, after the victims incurred drug debts, used force, threats of force, fraud and coercion to compel them to engage in commercial sex acts.

They did this, in part, by posting photographs of the females on backpage.com on a user account that Mack and Onysko created, according to the indictment.

In March 2013, Victim 2, a 16-year-old minor, went to Mack’s residence in Elyria after school, at which time Mack gave her cocaine. Mack later told and caused others to tell Victim 2 that she needed to engage in commercial sex acts. She did, after which she turned over all proceeds to Mack, according to the indictment.

From March through April 9, 2013, Mack brandished a firearm in front of three of the females. He choked and threatened to kill one of the female victims, according to the indictment.

Count 1 charged Mack with conspiring with Onysko to force the four victims to engage in commercial sex acts by using force, threats of force, fraud and coercion

Counts 2 through 5 charged Mack with forcing each of the four victims to engage in commercial sex acts by using force, threats of force, fraud and coercion.

Count 6 and 7 charged Mack with distribution of heroin and cocaine, respectively.

Count 8 and 9 charged Mack with obstruction of justice. Count 8 charged Mack with advising his son, identified only as T.L., to “stick with the script” when testifying before the Federal Grand Jury. Count 9 charged Mack with providing money to Onysko in May 2013 to purchase personal items for Victim 4 and to advise the victim not to “flip”. He also told the victim not to speak with FBI agents attempting to contact her and advising her not to make incriminating statements against Mack, according to the indictment.

This case is being prosecuted by Assistant United States Attorneys Bridget M. Brennan and Carole Skutnik following an investigation by the FBI and Elyria Police Department.

Three people from the Greater Cleveland area were convicted for their roles in a $1.4 million fraud conspiracy involving property in North Carolina, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office and Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati Field Office.

Camille M. Harris, 43, of Cleveland, Kenneth T. Embry, 57, of Lyndhurst, and Deon D. Levy, 44, of Bedford, were convicted following a jury trial on conspiracy to commit wire fraud and related charges.

They are scheduled to be sentenced on May 7.

All three were also affiliated with a general contracting company known as Ameribuild Management Company (AMC) in Cleveland: Harris was president, Embry was chief financial officer and Levy was director of operations from May 2007 through February 2008, according to the indictment.

Together, the trio conspired to enrich themselves by making false representations on a mortgage-loan application and other documents related to the North Carolina property and using fictitious invoices as a means to extract money, according to the indictment.

Around November 2007, Levy had been working with a realtor to find a property around Charlotte, N.C. Embry sent Levy bank statements for Harris’ personal account that falsely stated her bi-weekly salary payments were $31,260. Embry also emailed Harris’ personal tax returns and AMC’s corporate tax returns, both of which contained misrepresentations about the financial condition of Harris and AMC, according to the indictment.

On Dec. 21, 2007, Embry sent an invoice to a North Carolina escrow agent for $340,000 from an Ohio business called Wolfco, Inc. The invoice requested payment for work done on the North Carolina property, when in fact no work had been done, according to the indictment.

Embry again sent false bank statements and balance sheets that misstated the financial conditions of Harris and AMC, according to the indictment.

On Dec. 28, 2007, Harris executed and submitted a loan application for the North Carolina property to Fairway Independence Mortgage Corp. that contained several false statements, including claims that she had a monthly income of $62,520, she had more than $1.2 million in two bank accounts and that she owned property on East 141st Street in Cleveland with a market value of $80,000, according to the indictment.

That day, Harris and Embry caused the sale and closing on the North Carolina property with a disbursement check from Fairway of $1,393,873. That included $340,000 that was distributed to Wolfco, Inc. Five days later, Embry opened a bank account in the name of Wolfco, Inc. d/b/a Kenneth Embry, according to the indictment.

On Jan. 7, 2008, Harris and Embry caused the escrow agent to transfer $340,000 to Wolfco’s account. Later that day, Embry drafted a check in the amount of $181,000 made out to “cash.” He then transferred $150,000 from his Wolfco account to the AMC account controlled by Harris, according to the indictment.

Two days after that, Harris drafted a check in the amount of $80,000 from the AMC account payable to herself and deposited it into her personal account.

Harris and Embry caused a loss of approximately $599,388 to Fairway and Amtrust Bank, as the purchaser of the North Carolina property’s mortgage from Fairway, according to the indictment.

This case is being prosecuted by Assistant United States Attorney Robert J. Patton and Special Assistant United States Attorney Derek Kleinmann following an investigation by Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations.

Four people from Cleveland were indicted for their roles in robbing a Euclid bank last month, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Germain D. Davis, Jr., 20, Julian Anderson, 23, Shawn Caldwell, 22, and Dejuan Brown, 24, were each indicted on one count each of armed bank robbery and one count of using and carrying a firearm during and in relation to a crime of violence.

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

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’ role in the offense, and the characteristics of the violation.  In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.

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

Robert W. Thomas, 37, of Cuyahoga Falls, Ohio, was charged with 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.

“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 the indictment.

The indictment also charges that 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. 

The indictment also charges that 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. 

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 Alliance 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.

William D. Emery, 28, of Sheffield Village, 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 August 16, 2012, through on or about August 19, 2012, Emery 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 December 14, 2012, Emery possessed a computer and an external hard drive, 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 Elyria Office of the Federal Bureau of Investigation.

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

A Brecksville man and his brother were indicted for operating a scheme to defraud people who believed they were bidding on rare and collectable baseball cards on eBay including Babe Ruth and Mickey Mantle cards, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Steven Norris, age 38, of Brecksville, Ohio, and his brother, Scott Norris, age 40, of Milton, Penn., are named in the nine-count indictment. The charges include mail fraud and wire fraud.  

“The charges allege that the defendants made tens of thousands of dollars in fraud proceeds using the great legends of baseball as trade bait,” Dettelbach said. “Now it is the defendants who are hooked. The Secret Service did a tremendous job putting this case together.”

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

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

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

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

The indictment charges that in furtherance of the scheme, the defendants mailed or caused certain items to be mailed via the U.S. Postal Service and transmitted or caused the transmission of certain interstate wire communications.   

The case is being prosecuted by Assistant United States Attorney Robert W. Kern following an investigation by the United States Secret Service.

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

Nicholas B. Bowers, 30, of Akron, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, transferring obscene material to a juvenile and enticement, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges that from on or about January 1, 2011, through on or about January 13, 2014, Bowers 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 Bowers knowingly used a device connected to the Internet, to attempt to persuade, induce, entice and coerce a twelve (12) year-old girl to engage in illegal sexual activity with him. The indictment also charges that Bowers used a facility and means of interstate commerce, that is, a device connected to the Internet, to knowingly transfer obscene matter, that is, a video file containing  visual depictions of himself masturbating, to an individual who he knew had not attained the age of 16 years, that is, a 12-year-old girl. 

The indictment also charges that on January 13, 2014, Bowers possessed two computers, a USB storage device, a cellular phone and numerous DVDs, 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 Akron Office of the Federal Bureau of Investigation, the Springfield Township Police Department, and the Toronto Police Service.

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

A Bedford Heights woman was charged with stealing and converting to her own use approximately $210,510 in Social Security payments made to her father after his death, said  Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Gloria F. Vaughn, 71, was charged in a criminal information with one count of theft of government property.

Vaughn’s father received monthly Social Security Administration retirement benefits, which were deposited electronically into a KeyBank savings account. Upon Vaughn’s father’s death in September 1983, Vaughn continued to receive the benefits, which she knew were intended for her father and should have ceased upon his death, according to the indictment.

She received approximately $210,510 in Social Security payments between October 1983 and September 2012, according to the indictment.

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

The case is being prosecuted by Assistant U.S. Attorney Lauren Bell, following investigation by agents of the Social Security Administration Office of Inspector General.

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 Salem, Ohio, pharmacist was sentenced to two years in prison and ordered to pay more than $300,000 in restitution after previously pleading guilty to health care fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio and Ohio Attorney General Mike DeWine.

Bruce E. Franken, 53, will also be on supervised release for three years upon his release from federal prison.

“This sentence sends an important message that there will be consequences for those that try to game programs such as Medicaid,” Dettelbach said. “Our office will continue to stamp out waste, fraud and abuse of all federal programs, particularly those that affect our health care system.”

“This defendant filled these prescriptions with complete disregard for the law because he knew that he was legally prohibited from doing so,” said Attorney General DeWine. “Because of his previous crimes, he was not allowed to work with Medicaid recipients, and he had no right to completely ignore this restriction.”

Franken was excluded from filling prescriptions for patients enrolled in federally funded health care programs, such as Medicaid, following  convictions on multiple criminal charges, including theft of drugs, in 2001.

From May 14, 2009, through July 14, 2011, Franken worked as a pharmacist at J.H. Lease Pharmacy, 229 North Ellsworth Avenue, Salem, Ohio. He filled prescriptions for Medicaid recipients even though he knew he was excluded from participation in all federal health care programs.

As a result of Franken’s unauthorized and fraudulent claims, Medicaid was billed and subsequently paid these prescriptions that Franken was prohibited from providing in the amount of $301,550, according to court documents.

This case is being handled by Assistant U.S. Attorney Chelsea Rice and Special Assistant U.S. Attorney Constance Nearhood following an investigation by the Ohio Attorney General's Health Care Fraud Section and the U.S. Department of Health and Human Services, Office of Inspector General.

A Brooklyn, Ohio, man was sentenced to three years in prison for his role in a conspiracy to steal copper from two dozen substations in Northeast Ohio owned by First Energy or Cleveland Public Power, 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.

Michael T. Butts, 33, was also ordered to pay more than $242,626 in restitution to First Energy Corp. by U.S. District Judge Benita Pearson.           

Butts and six other men previously pleaded guilty to conspiracy to damage energy facilities. Previously sentenced are:

William Bertini, 26, of Olmsted Falls, to two years in prison.

Christopher M. Butts, 27, of Cleveland, to four years and seven months in prison.

Jason B. Kauffman, 35, of Cleveland, to three years and one month in prison.

Julio Torres, 46, of Cleveland, to two year and three months in prison.

Jon T. Lefort, 26, of Cleveland, to one year and three months in prison

Keven Wenson, 22, of Lakewood, to two years of supervised release.

           
“These sentences should send a message that the theft of copper and other scrap metal is a serious problem in our region, and the targeting of energy facilities additionally poses a significant threat to our national security infrastructure,” Dettelbach said.

"This is the last of a group of seven that chose to enrich themselves while risking lives and posing serious threats to our community,” Anthony said. “The FBI and our law enforcement partners will continue to bring to justice those individuals who place our community in harm’s way.”         

The thefts took place between January and May 2013 and included substations in Brooklyn, Parma, Brecksville, Fairlawn, Medina, Cleveland, Wadsworth, Lakewood, Cuyahoga Heights, Independence, Vermillion, Lorain, Avon Lake, Westlake and Valley View, according to court documents.   

The 24 substations listed in the indictment have copper material around their bases that facilitated the transmission of electricity. Removal of the copper material from a substation causes a substantial risk of electrical blackouts as well as possible injury or death to utility company employees responsible for maintaining, servicing and repairing the substations, according to court documents.

Christopher and Michael Butts instructed Lefort, Bertini, Kauffman, Wenson and Torres how to remove the copper material from the substation in a way that would minimize the risk of physical harm to the person cutting the wire or cable. The defendants used bolt cutters to cut fencing and/or locks protecting the substations, according to court records.

The defendants then unlawfully extracted the copper wire and materials from the substations, manually carrying it in garbage cans, duffel bags, contractor bags and other containers to “staging areas.” From there, the copper material was transported to scrap yards, where it was sold for cash, according to court documents.

Court documents detail 25 copper thefts and five attempted thefts. It also lists 53 instances where at least some of the defendants sold stolen copper to area scrap yards between January and April 2013.

The defendants collectively sold the stolen copper for more than $15,000. They have collectively been ordered to pay $242,626 to First Energy Corp. for the cost of repairs to the substations.

This case is being prosecuted by Assistant U.S. Attorneys Thomas E. Getz and M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Avon Lake Police Department, Brecksville Police Department, Medina County Sheriff’s Office, Middleburgh Heights Police Department, Valley View Police Department and Northeast Ohio Regional Fusion Center, and assistance from the Medina County Prosecutor’s Office.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that William T. West, 29, of Uniontown, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.

The indictment charges that from on or about November 12, 2013, through on or about January 20, 2014, West knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. 

On January 21, 2014, images of child pornography were also found on his ASUS laptop computer, according to the indictment.

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

This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik.  The case was investigated by the Federal Bureau of Investigation, Canton Office.

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

A federal grand jury sitting returned a two-count indictment charging Jesse C. Lyons, age 32, of Rittman, Ohio with conspiracy to possess with the intent to distribute more than 50 grams of methamphetamine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Additionally, Lyons was charged with one count of attempted possession with intent to distribute more than 50 grams of methamphetamine on January 15, 2014.

The investigation is being conducted by the United States Postal Inspection Service with assistance from the Summit County Sheriff’s Office and the Wadsworth Police Department.  The case is being prosecuted by Special Assistant United States Attorney, Kevin Culum. 

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

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

A grand jury returned a four-count indictment charging Eddie J. Fletcher, 39, of Cleveland, with three counts of bank robbery and one count of attempted bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Fletcher robbed three banks: First Merit Bank of Streetsboro, Ohio, on January 10, 2013; Chase Bank of Cleveland, Ohio, on April 3, 2013; and, First Place Bank of Cleveland Heights, Ohio, on September 9, 2013.  The indictment further alleges that Fletcher attempted to rob the same Chase Bank branch on November 25, 2013.

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

The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation, the Streetsboro 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.

A federal grand jury returned an indictment today charging two people with robbing the Chase Bank at 4100 East Lake Road, Sheffield Lake, Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Andrew Perry, 21, of Lakewood, and Bryce Herring 18, of Elyria, were indicted on charges of bank robbery for the January 11, 2014, robbery of the financial institution. 

This case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following investigation by the Federal Bureau of Investigation, the Sheffield Lake Police Department, and the North Olmsted Police Department.

If convicted, each 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 Stow man was sentenced to nearly three years in prison for defrauding his employer out of more than $744,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Thomas A. Steiger, 45, was sentenced to 33 monthis in prison after previously pleading guilty to six counts of wire fraud and four counts of interstate transportation of property obtained by fraud. 

Steiger admitted that he had defrauded his employer, Voith Industrial Services, Inc. of Cincinnati. While working for Voith, Steiger was located at the Ford Motor Company Stamping Plant in Walton Hills, Ohio.  During 2011-2012, Steiger defrauded his employer by ordering industrial equipment on company invoices, and after receipt, selling the equipment to individuals not related to Voith.  Voith lost at least $744,109 as a result of Steiger’s scheme, according to court documents.

Steiger was also orderd to pay $744,109.00 in restitution. 

This case was investigated by the Federal Bureau of Investigation, with assistance from the Walton Hills, Ohio, Police Department.  The case was prosecuted by Assistant United States Attorney James V. Moroney.

Seven Ohio oncologists have been ordered to collectively pay nearly $2.6 million after pleading guilty to importing cancer medications that had not been approved by the Federal Drug Administration, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The doctors pleaded guilty to causing the shipment of misbranded drugs, a misdemeanor violation of the Food, Drug and Cosmetic Act. They were sentenced to probation and ordered to pay fines and restitution. Their names, ages, the city where they practiced medicine and the amount they were ordered to pay are as follows:

Ranjan Bhandari, 56, Liverpool, $1,139,532.

Timmappa Bidari, 68, Parma, $158,418.

David Fishman, 62, Euclid, $150,000.

Su-Chiao Kuo, 60, Brunswick, $179,840.

Marwan Massouh, 54, Westlake, $609,150.

Poornanand Palaparty, 62, Cleveland, $128,160.

Hassan Tahsildar, 55, Euclid, $179,316.

“These doctors 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.”

Antoinette V. Henry, Special Agent in Charge, FDA's Office of Criminal Investigations, said: “FDA's regulatory standards are designed to ensure the safety and quality of the medical devices and drugs distributed to American consumers. 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.”

“The introduction of misbranded prescription medications and the subsequent billing of Medicare for such medication is improper and illegal,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General - Chicago Region. “This conduct is potentially harmful to patients as it circumvents the laws that were enacted to ensure medications are safe for use and further squanders vital taxpayer dollars.

“The OIG will continue to work with our law enforcement partners to ensure that these types of violations are identified, investigated and prosecuted to the fullest extent of the law.”

The doctors are accused of obtaining drugs, including Zometa, Kytril, Taxotere, Gemzar, Eloxatin and others, from outside the United States, where the drugs were 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.

These cases were prosecuted by Assistant U.S. Attorneys Michael L. Collyer and James L. Bickett 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 Waterville woman was charged with bank fraud after she allegedly cashed or attempted to cash approximately 20 stolen checks, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Corisa J. Tolford was charged via criminal information. The charges relate to bank fraud beginning approximately February 7, 2011 and continuing through April 1, 2013.

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 United States Postal, Cleveland.  The case is being handled by Assistant United States Attorney Ava Dustin.

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 Parma man was charged with conspiracy to commit mail fraud for his role in defrauding the Cleveland Clinic out of approximately $179,040, 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.

Richard Zukowski, 49, is charged with one count of conspiracy to commit mail fraud.

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.

An individual identified as R.B. was the Institute Administrator within the Anesthesiology Institute at the Cleveland Clinic. R.B. submitted invoices related to the commissions for people purportedly recruited by DAG.

Zukowski conspired with R.B. from about June 15, 2010 through around January 2013, according to the information.

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

The Cleveland Clinic mailed Zukowski eight checks which totaled $179,040, according to the information.

R.B. then asked Zukowski to return half the money Zukowski received as payment for the invoices. Zukowski transferred only about one-third of the proceeds to R.B. Zukowski withdrew approximately $60,000 in cash, in increments between $1,500 and $2,000, and hand delivered the cash to R.B. in envelopes, according to the information.

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.

A Solon couple was indicted on nine counts of health care fraud for defrauding Medicaid out of approximately $750,000 by providing ambulette rides to patients who did not use or need wheelchairs, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Ohio Attorney General Mike DeWine.

Antwain Hamilton and Temeca Hamilton, both 37, were arrested this morning. They were indicted, along with the company they owned, Star Medical Transportation, located at 16004 Broadway Ave., Maple Heights, Ohio. Temeca Hamilton faces an additional count of witness tampering.

“These defendants are charged with stealing from a program designed to help those who cannot get themselves to doctors’ appointments,” Dettelbach said. “We will continue to prosecute those who abuse government programs for their own personal gain.”

"These individuals billed Medicaid for hundreds of thousands of dollars’ worth of services that they never provided and got paid for it in taxpayer dollars,” said Attorney General DeWine.  “This type of fraud does not go unnoticed, and we will get that funding back so that it can go towards people who need healthcare services in Ohio.”

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

The defendants are charged with defrauding Medicaid out of approximately $750,000 between 2010 and 2013 by charging Medicaid for rides of patients who did not use or need wheelchairs, billing Medicaid for ambulette attendants when no such attendants were used and billing Medicaid for transports that never occurred.

The last count of the indictment alleges Temeca Hamilton tampered with a witness, a Medicaid recipient, by asking the witness to tell law enforcement that she had been receiving transportation services from Star Transport for the last five years, which is false.

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

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

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

A former external bookkeeper of Taupa  Lithuanian Credit Union was charged today for engaging in a conspiracy that defrauded the credit union out of nearly $1 million, 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.

Vytas Apanavicius, 44, of Mentor, was charged in a criminal information with one count of conspiracy to commit theft or embezzlement from a credit union.

Apanavicius owned VPA Accounting Inc., through which he provided bookkeeping and accounting services from 1995 through 2013. These services included recording month-end journal entries for general ledger accounts, paying and recording monthly expenses and compiling monthly balance sheets and income statements, according to the information.

From at least 2001, Apanavicius  controlled six accounts at Taupa. In his role as external bookkeeper, Apanavicius became aware that Taupa CEO Alex Spirikaitis routinely deposited and transferred Taupa funds into member accounts to cover multiple overdrafts, according to the information.

Apanavicius then withdrew funds from his accounts and did not maintain sufficient balances to cover withdrawals. Spirikaitis deposited and transferred Taupa funds into Apanavicius’ accounts to cover his overdrafts and withdrawals, according to the information.

Spirikaitis caused Taupa to make approximately 72 false and fraudulent deposits and transfers into Apanavicius’ accounts. He also provided Apanavicius with approximately $25,000 in fraudulent proceeds from Taupa for the purchase of a new Jeep Cherokee, according to the information.

As a result of that conspiracy, Taupa and the NCUA suffered a loss of approximately $962,689, according to the information.

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

Spirikaitis, 51, of Solon, Michael Ruksenas, 33, of Naples, Florida, and John Struna, 51, of Concord Township, have previously been charged for their roles in the conspiracy.

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

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

An 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 Euclid woman was sentenced to 19 months in prison and ordered to pay $74,904 in restitution for her role in a scheme to file false and inflated income tax returns, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Kenyada Spates, of Euclid, Ohio, was previously found guilty of one count of conspiracy to make false claims and nine counts of making false claims.

Spates admitted to helping prepared 35 false income tax returns. Spates recruited friends and relatives to use as income tax refund claimants. Part of the refund money was deposited into accounts controlled by Spates, according to court documents

The case is being presented by Assistant United States Attorney Gregory C. Sassé after an investigation by agents of the Office of Inspector General for Tax Administration of the Department of the Treasury and by the agents of the Criminal Investigation Division of the Internal Revenue Service of the Department of the Treasury.

Attorney Ronald L. Rosenfield was charged in an information with failing to report and pay approximately $196,832 of employment taxes announced United States Attorney Steven M. Dettelbach.  The case is assigned to United States District Judge John R. Adams in Akron.
 
The unpaid taxes consisted of income taxes and FICA taxes withheld from the wages paid by his law firm, Ronald Rosenfield Co., L.P.A., including his own wages, for the eighteen consecutive calendar quarters from December 2006 through March 2011, according to the information.  The information also alleges that Rosenfield failed to report and pay an unspecified amount of additional employment taxes for all of the prior quarters dating back to June 2001.

At all relevant times, Rosenfield retained a national payroll firm, which prepared the law firm’s required employment tax returns for him to file with the Internal Revenue Service.  Rosenfield, however, did not file any of those returns and made no payments of the taxes reported on those returns, according to the information.  Moreover, the information alleges that Rosenfield claimed credits on his personal income tax returns for his unpaid income tax withholdings.

Rosenfield, age 70, resides in South Euclid, Ohio, according to court documents.

The case is being prosecuted by Assistant United States Attorneys John M. Siegel and Justin J. Roberts, following an investigation by the Internal Revenue Service – Criminal Investigation, Independence, Ohio.

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.

The United States Attorney’s Office for the Northern District of Ohio filed 207 illegal firearms indictments last year, U.S. Attorney Steven M. Dettelbach announced.

“This office and our law enforcement partners continue working around the clock to enforce our nation’s firearms laws,” Dettelbach said. “We will continue to go after the worst of the worst -- those who tote firearms and ammunition, despite prior felony convictions, as well as unlicensed dealers, straw purchasers and others who break the law.”

“Combating violent crime and protecting the public is ATF’s top priority,” said Alden J. Fry, Assistant Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division. “By focusing our efforts on impacting violent crime in our communities, ATF agents are getting guns out of the hands of violent criminals in order to make our neighborhoods safer.”

Broken down by geography in the district, the most indictments filed came out of the Cleveland office, with 103. That was followed by the Youngstown office (60), Akron office (23) and Toledo office (21).

There were 172 defendants sentenced last year for firearms crimes and the average sentence was nearly six years in prison (68.2 months).

Details of selected cases:

U.S. v. Torrence

Canton resident Renard Torrence pleaded guilty to 12 counts in December – one  count of dealing firearms without a license and 11 counts of theft of firearms from federal firearms licensees. Torrence stole 11 firearms last year from dealers in Medina, Wooster, Sugarcreek, Canton, Strasburg, Canal Fulton, Cuyahoga Falls, Chester Township, Carrollton, New Philadelphia and Ravenna. He is scheduled to be sentenced in March.

Warren Operation

More than 150 firearms were seized as part of an investigation that resulted in charges against 55 people for violations of federal firearms and narcotics laws in April. An additional 42 people were charged in state court. In just one example, Lewis Powell of Warren was indicted for illegally possessing 14 firearms, as well as body armor and weapons with obliterated serial numbers, as part of a conspiracy that brought heroin and cocaine from Detroit to Warren.

U.S. v. Schmidt

Richard Schmidt, of Toledo was sentenced to nearly six years in prison after pleading guilty to a variety of firearms charges after investigators found him in possession of 18 firearms, body armor and more than 40,000 rounds of ammunition, despite a previous manslaughter conviction.

U.S. v. Romero

Jose Romero, of Lorain, was sentenced in September to nearly seven years in prison after previously pleading guilty to possessing 40 rifles, pistols and revolvers despite a 2005 conviction for domestic violence which precluded him from having firearms.

Firearm prosecution statistics for calendar year 2002 through 2013 are as follows:

2002: 117 indictments

2003: 155 indictments

2004: 184 indictments

2005: 220 indictments

2006: 187 indictments

2007: 191 indictments

2008: 157 indictments

2009: 156 indictments

2010: 166 indictments

2011: 218 indictments

2012: 176 indictments

2013: 207 indictments

A Massillon man was sentenced to more than three years in prison for defrauding four clients out of $442,072, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

David Lee Cheviron, 61,was sentenced to 38 months in prison by U.S. District Judge Donald C. Nugent. The judge also ordered Cheviron to pay $442,072 to the victims and $85,616 to the IRS.

Cheviron was a financial consultant at First Merit Bank, Huntington Bank, and JP Morgan Chase Bank between 2006 and 2010, during which time he embezzled the money from the clients. Cheviron converted the money for his own personal use. He also failed to report the funds he received from the schemes on his federal tax returns, according to court documents.

He pleaded guilty last year to one count each of bank embezzlement and tax evasion.

This case is being prosecuted by Assistant United States Attorney Vasile C. Katsaros, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.

A three-count indictment was unsealed today charging two Ohio men with conspiracy to distribute and distribution of crack cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Richard Scales, age 27, of Windham, Ohio, was arrested today. Mario D. Ervin, age 34, of Warren, Ohio, remains at large.

Count 1 of the indictment charges that in or about November 2012, Ervin and Scales conspired with each other to distribute more than 28 grams of crack cocaine.   As part of the conspiracy, Ervin would supply Scales with crack cocaine for distribution in the Ravenna, Ohio area and elsewhere.

Counts 2 and 3 of the indictment charge Ervin and Scales with distributing more than 28 grams of crack cocaine on or about November 13 and November 19, 2012.

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

The investigation preceding the indictment was conducted by the Drug Enforcement Administration and the Portage County Drug Task Force.  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.

Two Akron men were indicted for their roles in a cocaine conspiracy, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Jermaine D. Bailey, age 39, and Leonard B. Tyler, Jr., age 32, were charged with one count each of conspiracy to possess with the intent to distribute approximately 245 grams of cocaine and one count of possession with intent to distribute approximately 245 grams of cocaine on November 13, 2013.

If convicted, the sentences of Tyler and Bailey will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, his 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 United States Postal Inspection Service with assistance from the Akron Police Department.  The case is being prosecuted by Kevin Culum, Trial Attorney. 

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

Two Youngstown men and a third from Lisbon, Ohio, faced federal firearms charges for unrelated cases, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Joshua Heasley, 24, of Youngstown, was indicted on one cout of making false and fictitious written statements to a federally licensed firearms dealer in order to purchase a firearm.

The indictment charges that on or about June 27, 2013, Heasley made a false and fictitious written statement to Sandel’s Loan, Inc., Youngstown, Ohio, in that he represented he was the actual purchaser of a Mossberg, model 500, 12 gauge shotgun, that he was purchasing for another individual.

Bernard A. Ritteger, 33, of Lisbon, Ohio, was indicted on one count of possession of an unregistered destructive device.  The indictment charges that on or about October 19, 2013, Ritteger possessed an S/S Inc., 12 gauge, street sweeper style shotgun, not registered to him in the National Firearms Registration and Transfer Record.

Crispulo Rodriguez, aka Franco Crispulo, age 41, of Youngstown, was indicted on one count of being a felon in possession of a firearm and ammunition.

The indictment charges that on or about December 12, 2013, Rodriguez possessed a Taurus, model PT 24/7 PRO DS, .45 caliber pistol and ammunition, despite previous convictions for armed robbery, assault with a dangerou weapon and assault and battery of a guard or corrections officer, all in the Hampden Superior Court in the Commonwealth of Massachusetts, and manslaughter, in the Norfolk Superior Court in the Commonwealth of Massachusetts.

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 investigations preceding these indictments were conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Youngstown Police Department and the Ohio Adult Parole Authority in the Rodriguez indictment.  The cases are 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.