Northern District of Ohio

A federal grand jury returned a one-count indictment charging James E. Wilson, age 42, of Rochester, Michigan, with possession with the intent to distribute approximately 900 pills of Oxycodone, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. 

Wilson was arrested on December 9, 2013 by the Stark Metro Drug Task Force during the execution of a search warrant at Wilson’s hotel room.  The search warrant yielded approximately 900 pills of Oxycodone which Wilson had brought to Ohio for sale, according to the indictment.

The indictment resulted from an investigation conducted by the DEA assisted by the Stark Metro Drug Task Force, Jackson Township Police Department, Canton Police Department, Stark County Sheriff’s Office, and the Summit Count Sheriff’s Office Drug Unit.  The case is being prosecuted by Assistant U.S. Attorney Teresa Dirksen. 

If convicted, Wilson’s sentence will be determined by the Court after review of factors unique to this case, including his 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.

Three separate indictments were filed charging five men for their roles in two bank robberies in Cleveland Heights late last year, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.

Lavontrae Melvin Durden, 19, of Cleveland, and Nathaniel Antoine Wright, 18, of Cleveland Heights, were indicted on charges of armed bank robbery and brandishing a firearm for the Nov. 22nd robbery of the Ohio Savings Bank located at 2066 Lee Road.

In a separate indictment, Lovell L. Briggs, 18, of Cleveland, was charged with conspiracy to commit armed bank robbery, aiding and abetting armed bank robbery and aiding and abetting brandishing a firearm for his role in the Nov. 22nd robbery of the Ohio Savings Bank located at 2066 Lee Road.

In a separate indictment, Rodney E. Johnson, 21, and Nautica Merritt, 20, both of Cleveland, were charged with armed bank robbery for the Dec. 7th robbery of the Fifth Third Bank at 12401 Cedar Road. Johnson faces an additional charge of brandishing a firearm.

“The citizens of Cleveland Heights are safer with this group locked up,” Dettelbach said.

“These five individuals put everyday citizens in danger with their aggressive and violent actions,” Anthony said. “This crew is off our streets through the collaborative efforts of the FBI Violent Crimes Task Force and the Cleveland Heights Police Department. The investigation continues to determine the full extent of their criminal activity.”

Cleveland Heights Police Chief Jeff Robertson said: “This case is the result of great collaboration between the Cleveland Heights Police Department, the FBI and the Cleveland Police Department in apprehending these violent individuals.”

These cases are being prosecuted by Assistant U.S. Attorneys Justin Seabury Gould and Kelly L. Galvin following investigation by the Federal Bureau of Investigation and the Cleveland Heights Police Department, with assistance from the Cleveland Division of Police and the Cuyahoga County Prosecutor’s Office.

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.

The former chief executive officer of Taupa  Lithuanian Credit Union was charged today for engaging in a conspiracy that defrauded the credit union out of $15 million, some of which he used to build a home in Solon, obtain a luxury suite at Cleveland Browns games and buy multiple vehicles and firearms, 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.

Alex Spirikaitis, 51, was charged in a criminal information with one count of conspiracy to commit bank fraud. Spirikaitis personally embezzled about $4.2 million from Taupa between 2001 and 2013, according to the information.

“This defendant stole millions of dollars from credit union members who entrusted him,” Dettelbach said. “He lived a life of luxury based on stolen money and now he must own up for those actions.”

“Alex Spirikaitis spent more than a decade engaged in corrupt actions before fleeing from the home he purchased with credit union funds and hiding in Collinwood for 3 ½ months,” Anthony said. “The FBI thanks the public for their patience while the investigation continued and allowed us to bring this fraudster to justice.”

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 used the money he embezzled buy multiple firearms, which he stored at the credit union, and a suite for Cleveland Browns games. He used Taupa’s money to purchase nine vehicles for himself and his family between 2007 and 2012, according to the information.

He also used Taupa funds to write 26 checks between November 2011 and November 2012, totaling $1,655,000, to build a home on Liberty Road in Solon, according to the information.

He also engaged in a conspiracy with several other people and their actions led to a loss of approximately $15 million to the credit union and NCUA.

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

Ruksenas worked as a teller from 1999 through 2006 at Taupa, which was located at 767 East 185th Street in Cleveland. Spirikaitis routinely reviewed the daily share draft report, circled names of certain members listed on the report with NSF checks, and instructed Ruksenas in his capacity as teller to honor and pay the NSF checks Spirikaitis had circled, according to the information.

After Ruksenas learned Spirikaitis honored overdrafts from certain accounts, he withdrew funds from his two accounts. Spirikaitis then transferred funds from Taupa directly into Ruksenas’ personal accounts to cover Ruksenas’ overdrafts, according to the information.

Also, Ruksenas worked as a home health aide for one of Spirikaitis’ relatives from 2007 through 2009, during which time Spirikaitis used credit union funds to purchase Ruksenas a Jeep Cherokee, according to the information.

As a result of that conspiracy, Taupa and the National Credit Union Association (which insures credit unions) lost approximately $481,000, according to the information.

Struna maintained both personal and corporate accounts at Taupa dating back to 1995.  He began a conspiracy with Spirikaitis in 2007, during which time Struna overdrew his accounts by approximately $2.5 million, according to the information.

Struna called Spirikaitis about twice a month and requested Spirikaitis’ approval to withdraw additional funds. Spirikaitis made multiple transfers from Taupa’s internal accounts to cover the overdrafts, according to the information.

Spirikaitis caused Taupa to make approximately 38 false and fraudulent wire transfers into Struna’s personal accounts between 2007 and 2013. During that time, Struna repaid only approximately $15,000, according to the information.

In 2011, Struna requested and received $112,105 from Spirikaitis for the purchase of a condominium located in Ft. Myers, Florida. In 2012, he requested and received approximately $100,000 for an investment opportunity. At no time did Struna submit any credit applications or loan documents, according to the information.

As a result of that conspiracy, Taupa and the NCUA suffered a loss of approximately $2.5 million, according to the information.

The information also details similar conduct in which Spirikaitis transferred Taupa funds to cover overdrafts for others who worked at Taupa or had accounts there.

A person identified only as A.B. worked at Taupa between 1991 and 2013 and withdrew more than $1.3 million for which there were insufficient funds, according to the information.

A person identified only as G.C. withdrew approximately $1 million from accounts for which there were insufficient funds between 2001 and 2013. Spirikaitis made multiple transfers from Taupa’s internal accounts to cover the overdrafts, according to the information.

A person identified only as P.B. withdrew approximately $1 million from accounts for which there were insufficient funds between 2001 and 2013. Spirikaitis made multiple transfers from Taupa’s internal accounts to cover the overdrafts, according to the information.

A person identified only as V.A., who worked at Taupa as a bookkeeper, withdrew approximately $120,000 from accounts for which there were insufficient funds, according to the information.

This case is being prosecuted by Special Assistant United States Attorney Derek Kleinmann and Assistant United States Attorney Robert J. Patton. 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.

Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation and Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announce the federal arrest of Robert W. Thomas, age 36 of Cuyahoga Falls, Ohio.

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

Robert W. Thomas agreed to a meeting with the online undercover officer to purchase for $400 what he believed to be a 10-year-old child. Thomas and the officer, acting in an undercover capacity, met in a business establishment in Alliance and then went outside to complete the “transaction.” As the two approached the undercover officer’s vehicle, Thomas was arrested. At the time of arrest, Thomas had $400 cash in his hand. Thomas was taken into custody and was held in the Stark County Jail on a $2 million bond.

The FBI and the Cuyahoga Falls Police Department provided assistance to the Alliance Police Department during the arrest and the subsequent search warrant conducted at Thomas’ residence.

After intensive review with consideration given to the nature and the seriousness of the offense, the investigative team and prosecutors deemed it appropriate to file federal charges.

On January 14, 2014, a federal arrest warrant was authorized charging Robert W. Thomas with one count of Title 18 U.S.C. 2251 A(b)(2)(A), which is the selling or buying of children.

“This case is the result of outstanding investigative work completed by the Alliance Police Department and its partners,” Anthony said. “Mr. Thomas should be prosecuted to the fullest extent of the law and these federal charges will ensure justice is served. Law enforcement will continue to proactively and aggressively pursue predators that intend to harm our children.”

Dettelbach said: “The conduct laid out in these charges is disturbing. Our office remains committed to working with the FBI and all our law enforcement partners to defend our children and fight human trafficking.”

Jennifer L. Arnold, law director for the city of Alliance, said: “The Alliance Law Director’s office would like to commend all the agencies involved in this arrest. While the investigation moved quickly with the Alliance Police, the FBI, the Cuyahoga Falls Police Department, and Judge Lisa Coates of the Stow Municipal Court assisted to ensure that this matter was done with professionalism. This matter received the highest priority treatment by all agencies as warranted by a case of this nature.”

“This was a tremendously successful investigation and operation performed under the supervision of Lieutenant John Jenkins, Detective Bureau Commander,” said Chief Scott C. Griffith, Alliance Police Department. “Also playing integral roles were Detective Matt Shatzer and Officer Hope Rummell, who were assisted by Detective Mike E. Jones, Detective Robert Rajcan, and Officer Don Bartolet. We also appreciate all the assistance given our investigators by the FBI.”

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

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

Any questions regarding this news release can be directed to Special Agent Vicki D. Anderson at the Cleveland Office of the FBI, (216) 522-1400 or vicki.anderson@ic.fbi.gov.

Child pornography charges were filed against four people in unrelated cases, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Mark A. Steffee, 43, of Hartville, Ohio, was charged with enticement and possession of child pornography. The indictment charges that from on or about September 1, 2005, through on or about December 1, 2005, and again from on or about March 5, 2013, through on or about March 27, 2013, Steffee, knowingly used a computer connected to the Internet, to attempt to persuade, induce, entice and coerce a 14-year-old girl to engage in illegal sexual activity with him.  The indictment also charges that on March 27, 2013, Steffee possessed a computer that contained child pornography.

Marcus W. Cover, 30, of from Midvale, 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 September 5, 2013, through on or about September 29, 2013, Cover 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 16, 2013, Cover possessed a computer that contained child pornography.

Kimberly Metzdorf, 23, of Ashtabula, Ohio, was charged with producing, receiving, distributing and possessing child pornography. The indictment charges that on or about July 8, 2013, July 12, 2013 and July 15, 2013, Metzdorf permitted a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, knowing that such visual depiction would be transported in interstate and foreign commerce.  The indictment also charges that from on or about July 3, 2013, through on or about July 23, 2013, Metzdorf knowingly received and distributed in interstate and foreign commerce, numerous digital files, which files contained visual depictions of real minors engaged in sexually explicit conduct.  The indictment also charges that on December 17, 2013, Metzdorf possessed an iphone that contained child pornography.

Nicholas Gerhardt, 68, of Canton, 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 19, 2012, through on or about December 1, 2012, Gerhardt knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct.  The indictment also charges that on February 13, 2013, Gerhardt possessed a computer and an external hard drive each that contained child pornography.

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

The Steffee case was investigated by the United States Secret Service, the Ohio Internet Crimes Against Children Task Force and the Hartville Police Department. The Cover case was investigated by the Canton Office of the Federal Bureau of Investigation and the Canton Police Department. The Metzdorf case was investigated by the Department of Homeland Security, Homeland Security Investigations. The Gerhardt case was investigated by the Canton Office of the Federal Bureau of Investigation and the Canton Police Department.

These cases are being prosecuted by Assistant United States Attorney Michael A. Sullivan. 

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

Twenty people were indicted for their roles in a conspiracy that brought heroin and other drugs to Akron and an Akron was charged with providing heroin that resulted in an overdose death, law enforcement officials announced today.

The indictment includes a death specification enhancement against Garland V. Phelps, Jr. The indictment alleges that a person fatally overdosed on Dec. 25, 2012, on heroin distributed by Phelps.

Eighteen Akron residents were charged with conspiracy to possess with intent to distribute heroin. Two other people, also of Akron, were indicted on related charges.

The indictment describes a conspiracy that took place from 2011 through 2014, in which heroin was brought to Akron from Atlanta, Chicago and other cities. It also details discussions between some conspirators about shooting, robbing and killing rival drug dealers and discussions about killing people they suspected of being informants to law enforcement.

“These defendants profited off people’s addictions, and in one case directly contributed to an overdose death,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “We will continue to aggressive prosecute heroin dealers while working with medical and treatment professionals in an effort to thwart this epidemic.”

U.S. Drug Enforcement Administration Acting Special Agent in Charge James Van Allen stated: “Heroin use has become one of the largest drug abuse problems in Ohio and across the United States.  This joint operation is a clear demonstration of the ongoing commitment the law enforcement community throughout Northeast Ohio has on working together to fully investigate those individuals and drug trafficking organizations that choose to endanger our community by trafficking in heroin and other illegal drugs.”

“This is an example of the fine working relationship between law enforcement in Summit County and out continued attack on drug trafficking,” said Akron Police Chief James Nice.

Summit County Sheriff Steve Barry stated, “This successful operation was made possible by the collaboration between federal, state, and local law enforcement. We will continue investigating and dismantling this drug operation with our law enforcement partners.”

The following individuals were indicted:

Name

Age

Garland V. Phelps Jr., aka “Felix”

36

33

Willie L. Sanders Jr.

27

Larry P. Dorsey

27

James M. Porter

24

Larry L. Sullivan Jr.

42

Brian A. Proctor

35

Cortez L. Davis

28

Matt E. Shocklee

56

Aaron S. Farrey

31

Garland J. Thompson, aka “Chill”

27

Antonio V. Dorman

24

Tramontay D. McWain

27

Jermaine D. Freeman

41

Antonia D. Easter

24

William D. Robinson

27

Denay M. Webb

29

Michaelas F. King

35

Quinntin R. Chatman

35

Marcus D. Mitchell

42

All of the defendants, with the exception of Quinntin R. Chatman and Marcus D. Mitchell, are charged in Count 1 with conspiracy to distribute and to possess with the intent to distribute heroin. 

In Counts 2-17, various defendants are charged with substantive distributions of heroin, methamphetamine, cocaine and crack cocaine.      

Phelps obtained multi-ounce and larger quantities of heroin from various suppliers, including Sykes, Sanders and a person identified only as Conspirator 1. Phelps, Sykes and Sanders distributed the heroin to various dealers, including Dorsey, Porter, Sullivan, Proctor, Davis, Shocklee, Thompson, Dorman, McWain, Easter, Robinson and King, 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 investigation was conducted under the U.S. Attorney’s Organized Crime Drug Enforcement Task Force, which is part of a national program that seeks to identify, investigate and prosecute significant drug trafficking enterprises by utilizing multiple investigative and prosecuted resources.

This case is being prosecuted by Assistant U.S. Attorneys Samuel A. Yannucci and Teresa Dirksen following an investigation was by the Drug Enforcement Administration, in partnership with the Akron/Summit County High Intensity Drug Trafficking Area initiative, the Federal Bureau of Investigation Safe Streets Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

The Summit County Drug Unit is comprised of members from the Summit County Sheriff’s Office, New Franklin Police Department, Stow Police Department, Copley Police Department, Cuyahoga Falls Police Department, Akron Police Department, FBI, DEA, Reminderville Police Department, Springfield Police Department, University of Akron Police Department, and the Barberton Police Department.    

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

A former Lorain County corrections officer was sentenced today to serve 18 months in prison followed by two years of supervised release after previously pleading guilty to one count of deprivation of rights under color of law, announced Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division, U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Office.

Marlon Taylor, 47, of Vermilion, Ohio, was working as a corrections officer in Lorain County Jail on July 29, 2012, when he assaulted an inmate by striking him repeatedly, according to court documents.

These actions caused bodily injury to the inmate and deprived the inmate of the right to be free from cruel and unusual punishment, according to court documents.

"Uses of excessive force by corrections officers undermine our system of justice and the rule of law,” said Acting Assistant Attorney General Samuels.  “Today's sentence reflects that the Department of Justice will aggressively protect the constitutional rights of every American."

"The vast majority of law enforcement officials do a great job,” said U.S. Attorney Dettelbach.  “When someone abuses the power and privileges of their office, however, they can and will be held accountable.”

“Marlon Taylor is not representative of the vast majority of the honorable men and women serving within the criminal justice system,” said Special Agent in Charge Anthony.  “Any allegation of abuse or excessive force involving law enforcement officers takes on a particular sense of urgency and will continue to be a priority for the FBI.”

This investigation has been conducted by the FBI’s Cleveland Office.  Assistant U.S. Attorneys Antoinette T. Bacon and Lauren Bell and Trial Attorney Betsy Biffl prosecuted the case.

A Concord Township man was charged in federal court for defrauding Cleveland-based Taupa  Lithuanian Credit Union out of $2.5 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.

John Struna, 51, was charged in a criminal information with one count of conspiracy to commit theft or embezzlement from a credit union.

“This defendant is part of a group that took advantage of the trust of hundreds of people for their own personal gain,” Dettelbach said. “These criminal charges should serve as a reminder that there is no such thing as free money.”

“John Struna willfully overdrew his credit union accounts to the tune of $2.5 million through his relationship with a corrupt executive at the credit union,” Anthony said. “The FBI will continue efforts to make sure all the individuals responsible for the collapse of the Taupa Lithuanian Credit Union are held accountable.” 

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.

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

Struna maintained both personal and corporate accounts at Taupa dating back to 1995.  He began a conspiracy with Spirikaitis (not charged herein) in 2007, during which time Struna overdrew his accounts by approximately $2.5 million, according to the information.

Struna called Spirikaitis about twice a month and requested Spirikaitis’ approval to withdraw additional funds. Spirikaitis made multiple transfers from Taupa’s internal accounts to cover the overdrafts, according to the information.

Spirikaitis caused Taupa to make approximately 38 false and fraudulent wire transfers into Struna’s personal accounts between 2007 and 2013. During that time, Struna repaid only approximately $15,000, according to the information.

In 2011, Struna requested and received $112,105 from Spirikaitis for the purchase of a condominium located in Ft. Myers, Florida. In 2012, he requested and received approximately $100,000 for an investment opportunity. At no time did Struna submit any credit applications or loan documents, according to the information.

As a result of the conspiracy, Taupa and the NCUA suffered a loss of approximately $2.5 million, according to the information.

This case is being prosecuted by Special Assistant United States Attorney Derek Kleinmann and Assistant United States Attorney Robert J. Patton. 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.

U.S. Attorney Steven M. Dettelbach announced that the Northern District of Ohio collected $23.9 million in Fiscal Year 2013 from criminal and civil actions handled exclusively or primarily by the United States Attorney’s Office for the Northern District of Ohio, about 150 percent of the office’s annual budget.

Of this amount, about $14.4 million was collected in civil actions and about $5 million in criminal actions. Additionally, the office took in about $4.5 million in civil and criminal forfeitures.

The office’s total overall budget for this fiscal year was about $16.6 million.

“Once again our office brought in tens of millions of dollars and far surpassed our annual budget,” Dettelbach said. “In addition to thwarting terrorism, protecting the environment, enforcing civil rights laws and getting guns off the streets, this office is a profit center for taxpayers. That is one reason why continuing cuts to our budget and staffing level make no sense.”

Attorney General Eric Holder said: “The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people. It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”

The money is used to compensate crime victims, is distributed to state and local law enforcement partners who participate in investigations and is returned to the general treasury.

Among the largest collections this year:

United States ex rel Loughner v. EMH, et al.
EMH Regional Medical Center paid the United States $3,863,857 and North Ohio Heart Center Inc. paid the United States $541,870 to settle allegations that they submitted false claims to Medicare. The settlement resolved allegations that EMH and NOHC performed unnecessary cardiac procedures on Medicare patients. Specifically, the United States alleged the two entities performed angioplasty and stent placement procedures on patients who had heart disease but whose blood vessels were not sufficiently occluded to require the particular procedures at issue.

United States v. Nilesh Patel and Thomas Greco
Patel and Greco paid a total of $343,158.21 in restitution owed to the Cuyahoga County MetroHealth System arising from their bribery convictions in 2010 and 2011, respectively.

United States v. Kennedy Mint
Kennedy Mint paid $300,000 arising from the company’s illegal dumping of cyanide into the Rocky River which resulted in the death of more than 30,000 fish. The Court ordered restitution to the Cuyahoga County Metroparks to restock the river with fish under the terms of the plea agreement.

United States v. Dover Chemical Corp.
This case involved Dover Chemical Corporation under the Toxic Substances Control Act at Dover Chemical’s facilities in Hammond, Indiania, and Dover, Ohio.  The case was settled for a recovery of $1,400,780, of which $700,780 was paid in FY 2013.

Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions across the country in the fiscal year ending Sept. 30, 2013. 

The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.

The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

A complete breakdown of collections in the Northern District of Ohio over past decade is as follows:

2012: $79.7 million

2011: $48.6 million

2010: $42 million

2009: $17.7 million

2008: $36.7 million

2007: $63.5 million

2006: $80 million

2005: $51.4 million

2004: $22.3 million

An 11-count indictment was unsealed charging seven Toledo men for their roles in a conspiracy to possess both powder and crack cocaine with the intent to distribute the drugs, 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.

Charged are: Gale Shelmon, aka G-Force, age 47; Percy Underwood, aka Butch, age 47; Bryant Anderson, aka B, age 34; Larry Jones aka LA, age 45; Justin Toler, aka J-Nut, age 37; Creston White, age 61; and Darryl Brown, aka D, age 28, all of Toledo.

The indictment charges each defendant with conspiring to possess cocaine and crack cocaine with intent to distribute.  The indictment also charges four defendants with possession with intent to distribute crack cocaine. 

Beginning in or about June 2010 and continuing through the date of the indictment, the defendants were involved in a conspiracy to distribute cocaine and crack cocaine in the Toledo area, according to the indictment. 

Specifically, the indictment alleges that a co-conspirator obtained substantial quantities of cocaine from sources of supply in Texas.  The cocaine was then transported from Texas to Toledo, Ohio by semi-truck where it was unloaded, stored and distributed by the defendants named in the indictment.  

The case was accepted and investigated as an Organized Crime Drug Enforcement Task Force (OCDETF) investigation.  The OCDETF program is designed to insure that the most sophisticated investigative and prosecutive resources are directed against large-scale organized drug trafficking ventures.

The indictment culminates a two-year investigation by the Federal Bureau of Investigation and Toledo Metro Drug Task Force.  This Organized Crime Drug Enforcement Task Force case is being prosecuted by Assistant United States Attorney Thomas P. Weldon and Special Assistant United States Attorney Matthew C. Spaulding.

If convicted, the defendants’ sentences will be determined by the Court after a review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offenses and the characteristics of the violations.  In all cases, the sentences 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.  The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.

 A Mansfield man was sentenced to nearly four years in prison for fraud and insurance embezzlement, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Willard C. Lee, 52, previously pleaded guilty to 12 counts of wire fraud and one count of insurance embezzlement.

Lee, who was employed by the Allstate Insurance Company between 1996 and 2011, admitted that he embezzled approximately approximately $1 million from Allstate customer annuity accounts between July 2007 and December 2011.  

Lee forged customer signatures on withdrawal requests to Allstate and Lincoln Benefit Life, a company wholly owned by Allstate which sells annuities.  Once fraudulent paperwork was submitted, Lee had the proceeds wire-transferred into bank accounts he controlled in Mansfield, according to court documents.       

U.S. Districy Judge Sara Lioi sentenced Lee to 46 months in prison and ordered him to pay restitution in the amount of $1,052,559.80 to Allstate, along with a special assessment amount of $1,300.00. 

This case was prosecuted by Assistant U.S. Attorney James V. Moroney, following an investigation by the Mansfield and Canton offices of the Federal Bureau of Investigation, and the Investigative Services Unit of Allstate Insurance Company.  

A Mansfield man sentenced to more than 11 years in prison and ordered to pay $767,462 in restitution for his role a mortgage fraud scheme which caused approximately $1.3 million in losses to five lending institutions, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

David R. Sharrock, age 71, pleaded was sentenced to 135 months in prison by U.S. District Judge Donald Nugent.

Sharrock was previously found guilty of 26 counts, including conspiracy, bank fraud, wire fraud, bankruptcy fraud and making false statements for his actions, which caused losses to Geauga Savings Bank, J.P. Morgan Chase Bank, Washington Mutual Bank, Interbaby Funding, LLC, and Suntrust Mortgage, Inc.

His daughter, Rhonda J. McElroy, 51, of Bellville, Ohio,was sentenced to six months incarceration followed by six months of home confinement and ordered to pay $65,415 in restitution.

Ronald L Kightlinger, 51, of Crestline, Ohio, and Richard W. Balliett, 45, of Bucyrus, Ohio, were previously sentenced after pleading guilty to crimes related to their roles in the conspiracy.

Balliet was sentenced two years and one month in prison and ordered to pay $169,627 in restitution while Kightlinger was sentenced to six months confinement and ordered to pay $278,000 in restitution.

Sharrock, Balliett, and McElroy sold homes in the cities of Mansfield, Marion, Galion, Plymouth, Shelby, and Bucyrus, Ohio. The sellers made fraudulent misrepresentations to the mortgage lenders by providing undisclosed down payment assistance to the buyers and by submitting fictitious purchase agreements and verifications of deposits. As a result, the sellers signed false settlement statements at closing, according to court documents.

Kightlinger acted as a straw buyer in purchasing a commercial building from David R. Sharrock in Mansfield, according to court documents.

This case is being prosecuted by Assistant United States Attorneys Vasile C. Katsaros and M. Kendra Klump, following an investigation by the Federal Bureau of Investigation.

The former Ottawa County sheriff was charged with improperly spending about $5,000 that was to be used for law enforcement purposes to instead pay for for personal items including Cedar Point tickets, clothing and prescription medicine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.

Robert Bratton, 60, of Genoa, Ohio, was charged in a criminal information with one count of theft concerning programs receiving federal funds.

“Money that was supposed to help the men and women in law enforcement was instead diverted and spent on personal items, including tickets to an amusement park,” Dettelbach said. “That is hardly amusing to the rest of us.  Those who are trusted to enforce the law, above all, cannot place themselves above it.”

Anthony said: “A sheriff who chooses to ignore his sworn oath to uphold the law and engage in criminal behavior is totally unacceptable. The FBI will investigate those who violate the public’s trust, no matter what position that individual holds.”

Bratton served as Ottawa County sheriff from 2004 until his resignation in September 2011. In 2010, the sheriff’s office received approximately $27,290 from the Furtherance of Justice Fund (FOJ Fund), which provided law enforcement entities to pay for expenses relating to official law enforcement duties and in the furtherance of justice, according to the information.

The Ohio Auditor provided guidance to county sheriffs in 2007 under the heading “Permissable Expenditures of F.O.J. Funds.” It read, in part, that an “expenditure must be both in the performance of the officer’s official duties and in furtherance of justice to be allowable.” The bulletin also stated, “There is always the additional requirement that the expenditure must be for a proper public purpose,” according to the information.

Bratton, as the county sheriff, was a fiduciary over F.O.J. Fund money provided to his office.

In 2010, Bratton used approximately $2,865 in F.O.J. Fund cash and also used a credit card linked to the F.O.J. Fund to purchase various personal items, including Cedar Point tickets, prescription medicine and clothing, all of which were non-permitted expenses under F.O.J. Fund rules and regulations, according to the information.

As of Dec. 31, 2010, Bratton reimbursed the F.O.J. Fund for some of the money he used for personal items, but failed to replace all the F.O.J. Fund money by that date, according to the information.

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.

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. Attorneys Gene Crawford and Antoinette T. Bacon and following investigation by the Federal Bureau of Investigation. 

Kelly Prigmore was sentenced to prison for one day, followed by two years of supervised release, with the first ten months subject to location-monitored home confinement, for her August 2013 conviction for filing false income tax returns, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. 

The sentence was imposed by United States District Judge Benita Y. Pearson, in Youngstown, Ohio.  Prigmore was taken into immediate custody shortly before noon, to be released at the end of the following afternoon.

Prigmore, age 43, is a resident of Akron, Ohio, according to court records.

Judge Pearson, who presided over the trial without a jury, also ordered Prigmore to provide 192 hours of community service on a schedule of eight hours per week spread out over six of the ten months of home confinement.  The Court also directed Prigmore to undergo mental health treatment and prohibited her from engaging in any gambling activities or from entering any gambling establishments during her supervision.  The Court also gave the supervising probation officer discretion to require Prigmore to enter a gambling treatment program.  The Court further ordered Prigmore to cooperate with the IRS in the payment of her unpaid taxes.

Prigmore was convicted after a two-day trial last August of filing false income tax returns for 2006 and 2007, on which she failed to report over $200,000 of income she earned as a self-employed provider of home health care.  Evidence at trial revealed that Prigmore went to H&R Block to prepare and electronically file her joint income returns for those years.  She caused the returns to list her occupation as a homemaker and to report that she and her husband were a low income family entitled to an Earned Income Credit and resulting tax refund each year.

For 2006, she reported total income of $8,600 and omitted additional income of approximately $96,686.  For 2007, she reported total income of $8,990 and omitted additional income of approximately $112,795, according to evidence at trial. 

The case was prosecuted by Assistant U.S. Attorney John M. Siegel and former Special Assistant U.S. Attorney Perry D. Mastrocola, following an investigation by the Internal Revenue Service, Criminal Investigation, Akron, Ohio.

A Lakewood man was charged with embezzling more than $1.8 million from a Euclid credit union and using the money to pay approximately 15 personal credit card accounts, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.

A two-count criminal information was filed charging William J. Memmer, 63, with one count of embezzlement and one count of making false entries in credit union records and reports.

“When those who hold trusted positions in financial institutions and those they work with betray the trust of the depositors, as is alleged in this matter, federal law enforcement will take all appropriate action to hold them accountable,” Dettelbach said.

“Memmer took advantage of his high-level position of trust by falsifying records and funneling money that was not his to himself,” Anthony said.  “The FBI will continue efforts to see that fraudsters like Memmer are brought to justice.”

Memmer was employed as Assistant Manager/Treasurer of the GIC Federal Credit Union (GIC), which maintained an office at 26255 Euclid Avenue, in Euclid, Ohio. 

From as early as 2006, Memmer maintained approximately 15 credit card accounts. He took blank GIC checks and drafted them payable to the credit card companies in payment of his personal obligation, then concealed the taking of the checks and embezzlement of the GIC funds. These actions caused a loss to the credit union of at least $1,843,007, according to the information.

As early as 2003, Memmer falsified quarterly financial reports to hide operating losses.  He is also alleged to have falsified confirmations of GIC assets by as much as $5.7 million, according to the information.

Upon discovery of the fraud, the National Credit Union Administration closed GIC, and began the liquidation process in December 2012. The liquidation is ongoing. 

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.

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 James V. Moroney, following investigation by agents of the Federal Bureau of Investigation’s Cleveland Office. 

A grand jury returned a three-count indictment charging Okey Wise, 64, of Bath, with theft of government property, depredation of government property, and false statements made to federal investigators, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. 

The indictment alleges that Wise, a supervisor at the U.S. Department of Veterans Affairs (VA), in or around April 2013 used his position of authority to steal raw materials from the local VA Medical Center, including wiring and other materials necessary for the Medical Center’s backup generator to function.  The theft and destruction of the wiring system resulted in a power failure at the Medical Center that left the hospital without access to its electronic records and other essential services.

The indictment also alleges that Wise made false statements to federal officials investigating the incident.

“These government funds and property should have been used to care for our nation’s heroes rather than to personally enrich a VA supervisor” said Gavin McClaren, United States Department of Veterans Affairs – Office of Inspector General, Resident Agent in Charge, Cleveland.

Assistant United States Attorneys Antoinette T. Bacon and Matthew J. Cronin are prosecuting the case following an investigation by the VA Office of Inspector General and the VA Police.    

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

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

The Heroin Epidemic -- Our Community’s Action Plan

Summary

On Nov. 21, 2013, many of Northern Ohio’s leading institutions gathered for a daylong summit in an effort to find solutions to the region’s heroin epidemic. A Community Action Plan was formulated over the course of several planning meetings and finalized during the summit. The purpose of this document is to serve as a guiding master plan as we move forward as a community. The Action Plan is divided into four specific areas: Prevention and Education, Healthcare Policy, Law Enforcement and Treatment. Inevitably, there is some overlap among each of these areas.

A few disclaimers: this document is a working draft and not written in stone. Some of these items are immediately actionable while others will take more time, research and effort. Some of these items have unanimous support among the planners, others do not. Although certain action items cannot be implemented without new legislation, some of the partnering agencies are forbidden from taking a position on pending or potential legislation. The hope is that this Action Plan will serve as a road map and tie together our various efforts toward the same goals – preventing people from using heroin, helping treat those who have become addicted, choking off both the supply of and demand for heroin in Northern Ohio, and working collaboratively to make our region healthier, safer and stronger.

This action plan was developed based upon input from the representatives of the following agencies and organizations: the United States Attorney’s Office, the Cleveland Clinic, the Cuyahoga County Executive, MetroHealth Medical Center, University Hospitals, Cuyahoga County Common Pleas Court, the Ohio Attorney General, the Cleveland Division of Police, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Ohio State Medical Board, the Ohio State Pharmacy Board, the Cuyahoga County Board of Health, the Cuyahoga County Medical Examiner, the Cuyahoga County Sheriff’s Department, the ADAMHS Board., the Westshore Enforcement Bureau and others.

PREVENTION AND EDUCATION

I. EDUCATING CITIZENS ON THE DANGERS OF HEROIN USE

• Prevalence of the heroin problem.
• Establish a community education plan that highlights the dangers and warning signs of heroin use and overdose death; treatment options; and support groups, resources and prevention opportunities.
• Produce materials to distribute to local school boards, PTA/O meetings, places of worship, community centers and local colleges.
• Initiate a dialogue with the Greater Cleveland Partnership and Downtown Cleveland Alliance to raise awareness of the prevalence of prescription drug and heroin abuse.
• Engage instructors who train health, social service and education professionals.
• Utilize social media to provide information about the epidemic, stressing the connection between prescription pills and heroin.
• Incorporate education specifically on heroin and prescription pill abuse into high school/ middle school health class curriculum.
• Target local school boards, principals, PTA/Os, nurses, psychologists, counselors, social workers, resource officers and DARE officers.
• Review programs to ensure education curriculum is based on the National Health Education Standards and CDC’s Characteristics of Effective Health Education. 
• Town Hall meetings/community forums in different municipalities.
• Continue the work started by Judge Astrab to convene community meetings.
• Educating the public about the dangers of prescription drugs.
• Collaborate with pharmacies to inform customers of proper prescription drug disposal.
• Meet with officials from Wal-Mart, Target and other retail chains that offer pharmacy services.
• Distribute Prescriber’s Toolkit.
• Work with other groups that frequently confront prescription drugs, including embalmers, hospice providers and other local businesses.
• Establish prescription drop boxes in all of Cuyahoga County’s municipalities.
• Expand drug drop-box outreach beyond Cuyahoga County.

II. PRIORITZE HEROIN OVERDOSE AS A PUBLIC HEALTH THREAT

• Conduct pilot prevention programs in high-risk areas.
• Identify high-risk areas and develop intensive plan targeting those areas.
• Establish community task force to take the lead on implementation.

HEALTHCARE POLICY

I. LEGISLATION

• Immediately actionable:
• Advocate for passage of HB 170 (Naloxone distribution to first responders) by early 2014.
• Advocate for passage of HB 92 (syringe exchange legislation) by early 2014.
• Advocate for drafting and passage of Good Samaritan Law (no harm/liability for reporting overdoses) by early 2014.
• Requires additional discussion and action:
• Advocate for the drafting and passage of a bill requiring OARRS utilization be mandatory for prescribing controlled substances such as opiates/opioids; and prescriber(s) and pharmacist(s) are electronically notified whenever any of the following occurs:
• Controlled substance filled twice in five days.
• Benzodiazepines + opioids prescribed to the same patient.
• Benzodiazepines + amphetamines prescribed to the same patient.
• Opioid doses > 100 Morphine Equivalent Dose (MED).

II. EDUCATION

• Requires additional discussion and action:
• Promote mandatory medical student education to include additional training requirements on pain management and opiate use.
• Establish some mandatory requirement for adding continuing medical education on opiate use over a three-year period and/or prior to renewal of DEA registration; and/or online provider education course.

III. FUNDING

• Requires additional discussion and action:
• Provide for the statewide expansion of OARRS, which will require funding legislation, some of which is already underway.
• Provide for the cost of and training for Naloxone distribution for first responders.

IV. POLICY

• Immediately actionable:
• Enforce compliance of present standards for Admin Rule 4731.21 and advocate that they be updated and revised to include:
• 100 MED limit; special form explaining need to exceed 100 MED; sent to pharmacy and renewed every six months.
• Mandatory OARRS review every three months.
• Compliance checklist, renewed every six months, for opiate preauthorization filled out and sent to pharmacy.

• Adopt uniform chronic benign pain management guidelines, especially for Emergency Departments, thus strengthening the Ohio Opioids and Other Controlled Substances guidelines to include:
• Acute pain prescriptions only in 10-day increments.
• Photo ID requirement.
• Underage parental consent for opiate/opioid treatment of pain.
• Special license or permit for pain management clinics.
•  
• Requires additional discussion and action:
• Commitment to increased local treatment capacity.
• Additional drug courts and more coordination with treatment.
• Enforcement of parity rules for treatment providing for:
• Partial hospitalization.
• Detoxification.
• Intensive outpatient.
•  

IV. DATA AND INFORMATION

• Immediately actionable:
• Coordinate data sharing, especially between the Attorney General, State Medical Board and State Pharmacy Board, to allow freer exchange of de-identified data in an effort to show trends and better direct community and law enforcement responses.
• Improve and refine data gathering and coding to better track opiate/opioid dependence and overdoses (as opposed to general overdoses); centralized statewide data collection to track heroin deaths, treatment and Emergency Department visits.
• Promote uniformity of practice through State Coroners Association and State of Ohio to identify heroin deaths specifically where possible, as well as deaths caused by other opiate/opioids.
• Promote greater and sustained coordinated efforts between government, medical, treatment, and law enforcement communities to utilize data to combat the heroin crisis.

LAW ENFORCEMENT

I. HEROIN TRAFFICKING/INTERDICTION/DIVERSION

• Federal/State law enforcement will continue to use all assets to prosecute heroin dealing organizations in the Northern Ohio area.
  
• For heroin users, law enforcement will continue to work with the courts to seek diversion and treatment as an alternative to incarceration.  The courts will be encouraged to extend any monitoring period or supervision of heroin users to keep them accountable.  Law enforcement also will explore options to provide information to heroin users for immediate treatment options and resources.  Drug abuse charges will be used to focus attention on an individual’s addiction and recognize a developing problem for both the addict and his/her family.

• For heroin traffickers, sentences should be significant for both deterrence and punishment.  Certain drug traffickers may qualify for significant, enhanced sentences in federal court.
• Case targets and intelligence will continue to be discussed among involved law enforcement agencies to avoid conflicts and duplication of efforts.

• Law enforcement will continue to encourage community involvement in addressing the heroin epidemic.  Involvement begins with educating the community regarding the heroin problem and identifying how individuals and organizations can assist law enforcement.
• Educate law enforcement partners regarding federal forfeiture in drug trafficking cases for equitable sharing purposes and return of money to localities to assist law enforcement in addressing this problem.

II. HEROIN DEATH INVESTIGATION

• The Heroin Involved Death Investigation initiative is being deployed in Cuyahoga County in response to the high number of deaths.  Other localities are encouraged to develop similar initiatives.
• The Cuyahoga County Sheriff, Prosecutor and Medical Examiner, the Cleveland Division of Police and the United States Attorney’s Office will continue to work together on heroin overdose death investigations.
• The goal will remain to prosecute, where appropriate, responsible heroin traffickers for manslaughter in state court or to seek mandatory minimum sentences based on a death enhancement at the federal level.
• Components and protocol for the Heroin Involved Death Investigation are as follows:

 

• A suspected heroin death is encountered by the Medical Examiner investigator related to the City of Cleveland.

• The Medical Examiner investigator puts out a notification to the Cleveland Police investigators deployed to this initiative.

• The Cleveland Police or Cuyahoga County Sheriff’s Office investigators respond immediately and begin an investigation into the source of the heroin.  This involves interviews at the death scene which could be a residence, hospital, etc.  Investigators will focus on information gathering first as opposed to immediate arrests of witnesses and participants.

• Cleveland Police or Sheriff’s Office investigators will recover crucial evidence for immediate review by CPD technicians.

• Cleveland or Sheriff’s Office investigators will work back to the dealer with various techniques including confidential informant and direct drug buys that will support technical evidence and interview statements.

• Cleveland Police or Sheriff’s Office investigators will work in both County and federal court on prosecutions related to Manslaughter and other charges.

• The Cuyahoga County Sheriff’s Office will continue running a parallel initiative handling the suburban heroin overdose deaths.  The Cleveland Police and Sheriff’s Office teams will work together on their cases sharing information, personnel and other assets.  Cuyahoga County Supervising Prosecutor Deborah Naiman will guide the investigations.

• Medical Examiner Administrator Hugh Shannon has initiated the Heroin Alert notification component.

TREATMENT

I. TRAINING IN SCREENING AND BRIEF INTERVENTION

• Train clinicians in SBIRT (Screening, Brief Intervention and Referral to Treatment) so they can recognize the disease of addiction/substance use disorder.
• Train clinicians in Motivational Interviewing so they can respond effectively to clients who are not-yet-ready to change behavior.

II. INCREASE THE VISIBILITY OF HB 93 AND THE 80 MD MED GUIDELINES

• Work with State Medical Board, Governor’s office, and other stakeholders to disseminate and enforce these laws and to encourage wider adoption of the guidelines.

III. INCREASE THE USE OF OARRS (OHIO AUTOMATED Rx REPORTING SYSTEM)

• Increase the use of OARRS by all physicians and pharmacies.
• Integrate OARRS into the Electronic Health Record of all local healthcare systems.

IV. INCREASE ACCESS TO MEDICATION-ASSISTED TREATMENT (MAT)

• Create a model for MAT that assists the community toward a combination of MAT, treatment, and 12-step programs.
• Increase public and private funding for treatment slots in the following settings:
• Detoxification.
• Suboxone clinics.
• Methadone clinics.
• Intensive outpatient treatment.
• Residential treatment.
• Sober housing.

 
V. CREATE A STRATEGY FOR WORKFORCE DEVELOPMENT

• Increase the number of addiction psychiatrists and addiction medicine doctors working in treatment agencies.
• Educate the treatment community about MAT to increase support for its use.

VI. ADVOCATE FOR PARITY IN INSURANCE COVERAGE

• Work with public and private insurance companies to gain true parity for addiction treatment.
• Work with Medicaid to turn on the SBIRT codes in Ohio.

VII. BALANCE OF COMPETING PRIORITIES: CHRONIC PAIN

• Bring together pain doctors and addiction doctors to implement best practices in the area of pain management and addiction.
• Integrate OARRS into the Electronic Health Record  of all local healthcare systems.

VIII. BALANCE OF COMPETING PRIORITIES: PATIENT SATISFACTION SCORES

• Work with hospital quality committees to make modifications in the use of patient satisfaction scores when it comes to patients with addiction.

Former Cuyahoga County employee and Parma School Board member J. Kevin Kelley was sentenced today to six years in prison and ordered to pay $605,035 for his involvement in several bribery schemes, federal law enforcement officials announced today.

Kelley, 44, formerly of Parma, previously pleaded guilty in U.S. District Court to multiple counts of Hobbs Act conspiracy, conspiracy to commit mail fraud, conspiracy to commit theft or bribery concerning programs receiving federal funds, theft or bribery concerning programs receiving federal funds and making false tax returns.

“Kevin Kelley, the last of more than 60 indicted individuals in Operation Airball to be sentenced, exploited his corrupt connections in order to line his pockets,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “The FBI will continue efforts to combat misuse of taxpayers’ dollars at any level.”

Kelley previously pleaded guilty to several bribery schemes involving Cuyahoga County Auditor Frank Russo, Cuyahoga County Commissioner Jimmy Dimora, Anthony O. Calabrese, Ferris Kleem and others.

Kelley admitted to helping organize a bribery scheme in which Cuyahoga County officials Jimmy Dimora and Frank Russo were sent to Las Vegas in exchange for supporting county funding for the agency. Kelley was paid my by Alternatives Agency for “consulting services” and he used a portion of the money to purchase first-class airfare to Las Vegas for Dimora, Russo and Russo’s companion, according to court documents.

Kelley organized the trip in coordination with Ferris Kleem and then helped Kleem get an inspector he specifically requested to the Snow Road resurfacing project, which was being performed by Kleem’s company, according to court documents.

Calabrese hired Kelley as a consultant for Alternatives Agency, paying up to $4,900 a month, but Kelley performed little actual work for the agency. Instead the money was paid in order to obtain favorable consideration from Kelley and others on business matters unrelated to Alternatives Agency, according to court documents.

On several occasions, Kelley also steered county contracts and Parma schools contracts to companies that paid bribes to him or to his friends and associates, according to court documents.

Kelley also filed false tax returns in years 2003-2007 in which he did not disclose $189,659 of income, according to court documents.

The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon, Ann C. Rowland and Nancy L. Kelley following an investigation by the FBI and IRS – Criminal Investigation.

A federal grand indicted three men from the Toledo area for their roles in the operation of a $23 million fraud scheme involving the sale of Iraqi dinar currency and two non-existent hedge funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati field office.

Those indicted are: Bradford L. Huebner, 66, of Ottawa Hills, Ohio; Charles N. Emmenecker, 66, of Sylvania, Ohio, and Michael L. Teadt, 67, of Maumee, Ohio.

Rudolph M. Coenen, age 47, of Jacksonville, Florida, has already pleaded guilty to crimes related to his role in the conspiracy.

The men are charged with conspiracy to commit wire fraud and wire fraud. Huebner is also charged with multiple counts of money laundering, structuring and willful failure to file currency and transaction reports.

As a result of the defendants’ conduct, investors lost about $23.8 million from dinar sales and more than $700,000 from the sale of non-existent hedge fund “seats” and “placements,” according to the indictment.

“These defendants made false statements time and again to convince people to part with their savings and hard-earned cash,” Dettelbach said. “The fact that they falsely claimed one member of the conspiracy was wounded while fighting in Iraq is particularly egregious.”

“Illegal activity involving the investment industry has brought financial ruin to many Americans,” Enstrom said. “IRS Criminal Investigation is committed to unraveling complex investment schemes to ensure that the promoters of these schemes do not use the financial-services industry for personal gain.”

The indictment charges that beginning about August 2010, Huebner, Coenen, Emmenecker and Teadt conspired to operate “BH Group” in Toledo and “Bayshore Capital Investments” in Jacksonville in order to defraud investors through investments in the Iraqi dinar currency and two non-existent hedge funds.
The conspirators promoted the dinar and non-existent hedge funds through the dissemination of a series of material falsehoods conveyed primarily through weekly interstate conference calls and through the conspirators’ web site, according to the indictment.

False claims included statements about the U.S. Treasury Department’s holdings of dinar and involvement in the Iraqi dinar investment market, according to the indictment.

Additional material false statements made by all the defendants include, but are not limited to, portrayal of Coenen as a former vice president at JP Morgan Chase and a former Marine who was awarded the Purple Heart after being wounded in Iraq during Operation Desert Storm.

Coenen worked for JP Morgan Chase for one day as an account executive/loan officer. He never served in the first Gulf War, was never wounded in combat and never received a Purple Heart, according to the indictment.

If convicted, the defendants’ sentence will be determined by the court after a review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense and the characteristics of the violation. The sentence will not exceed the statutory maximum and in most cases will be less than the maximum.

This case is being handled by Assistant United States Attorneys Gene Crawford and Matthew W. Shepherd following an investigation by the Internal Revenue Service – Criminal Investigation.

An indictment is only a charge and is not evidence of guilty. The defendants are 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 Jose Isabel Sandate-Lozano, age 30, with illegally reentering the United States following his deportation, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Sandate-Lozano is an alien who was previously removed or deported from the United States to Mexico on July 19, 2005, subsequent to a conviction for an aggravated felony.  

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 Homeland Security Investigations of the Immigration and Customs Enforcement Agency.

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

A grand jury returned a two-count indictment charging Cameron J. Lawhorn, 21, of Mansfield, Ohio, with one count of damage to and interference with an air navigation facility and one count of theft of government property, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Lawhorn willfully damaged, destroyed, and disabled a Federal Aviation Administration air navigation facility located in Shelby, Ohio.  The indictment further alleges that Lawhorn knowingly stole Federal Aviation Administration property, including a laptop computer, multimeter, and oscilloscope.

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 and the Richland County Sheriff’s Office.

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

Eight people were indicted for their roles in a $40 million mortgage fraud conspiracy involving dozens of properties along Florida’s Gulf Coast, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.

Named in the 45-count indictment are: Ileana E. Osborne, 44, of Santa Rosa Beach, Fla.; Kyle F. Conrad, 63, and Linda K. Conrad, 62, both of Hartville, Ohio; John J. Dubay, 48, of Delray Beach, Fla.; Jon R. Jacobson, 50, of North Canton, Ohio; Harry S. Kaplan, 50, of Hillsboro Beach, Fla.; David B. Romsey, 67, of Uniontown, Ohio, and Grace M. Wollerman, 49, of Mentor, Ohio.

Also named but not charged in the indictment is Jack R. Coppenger, of Akron. Coppenger is currently serving 10 years in federal prison for his role in the schemes.

The indictment details conduct that took place between 2004 and 2006, when Osborne owned and operated a mortgage brokerage company and a consulting company and Copppenger operated several businesses related to real estate development. The other seven people served as straw buyers, according to the indictment.

The defendants conspired to use straw buyers to make mortgage loan applications, to make false statements, misrepresentations and omissions in the mortgage loan applications and to conceal the scheme to avert detection from lending institutions, according to the indictment.

At Osborne and Coppenger’s request, a real estate agent or property finder located a property for sale. Osborne, Coppenger and others conviced the property owner to allow them and others to assist in the sale and purchase for a price satisfactory to the seller. Coppenger located a straw buyer with good credit and solicited his or her participation in the fraudulent scheme by promising payments of as much as $25,000 in return for using the straw buyer’s name and credit to purchase the property, according to the indictment.

In some instances, Osborne, the straw buyer, Coppenger and others agreed to a sales price of the property in excess of the asking price and divided the excess amount between Osborne and Coppenger, their respective companies and others, according to the indictment.

Coppenger represented to the straw buyer that his or her credit information was needed only to make the purchase, and once purchased the straw buyer would not be responsible for the payments on the mortgage loan. However, he also promised straw buyers a split on future profits from the investment developed in and development of the property, according to the indictment.

Osborne, as a licensed mortgage broker, along with the straw buyer, filled out a loan application for the straw buyer. She and the straw buyer included false information, including inflating income amounts, falsely representing that the property would be used as a second residence, failing to disclose that the straw buyer was not the source of the down payment for the property and other false statements, according to the indictment.

The indictment lists fraudulent transactions for nine properties on Ann Street in Santa Rosa, Fla.

Through their schemes, the defendants obtained numerous home mortgage loans under false and fraudulent pretenses with a total face value of approximately $40 million in order to illicitly enrich themselves and their co-conspirators. Many of these loans are now in default and/or foreclosure, according to the indictment.

Osborne was also indicted for her role in a bank fraud conspiracy involving Jason A. Herceg and Andrew D. Norman in 2006 in which all three used straw buyers to make mortgage loan applications, made false statements and misrepresentation in the mortgage loan applications and concealed the scheme from lending institutions. That scheme involved four properties in Santa Rosa Beach, Florida, and caused an additional loss of approximately $5 million.

Herceg and Norman were sentenced to federal prison after being found guilty of crimes related to their role in the conspiracy.

This case is being prosecuted by Assistant U.S. Attorneys Robert J. Patton and Om Kakani following an investigation by the Federal Bureau of Investigation.

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 records, if any, the defendant’s role in the offenses and the characteristics of the violation.

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

A federal grand jury sitting in returned an indictment charging Justin Michael Krueger, age 23, whose last known address was Cleveland Heights, Ohio, with two counts of threats to another by interstate communication, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. 

While in Kansas and California, Krueger made interstate threats against relatives in Ohio, threatening to injure and kill them, according to the indictment.

Krueger was arrested on December 6, 2013, by the FBI and Safe Streets Task Force on a federal arrest warrant.  Assisting the FBI with the arrest was the Cleveland Heights Police Department. 

If convicted, Krueger’s sentence will be determined by the Court after review of factors unique to this case, including his 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 case is being prosecuted by Assistant U.S. Attorney Teresa Dirksen. 

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

A federal grand jury returned a three-count indictment charging Thomas Joseph Brown, age 42, of Canton, Ohio, with possession with intent to distribute approximately 446 grams of cocaine, possession of cocaine and attempted possession of cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. 

Brown was arrested on a complaint on November 14, 2013 when Postal Inspectors in Cleveland were alerted to two suspicious packages.  After further investigation and surveillance Brown was arrested by U.S. Postal Inspectors and members of the Ohio State Highway Patrol and Medway Drug Enforcement Agency.

If convicted, Brown’s sentence will be determined by the Court after review of factors unique to this case, including his 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 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.

An Ashtabula man was sentenced today to 13 years in prison for selling heroin that resulted in the death of an Ashtabula woman last year, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Jamarce Miller, 37, previously pleaded guilty to conspiracy to distribute heroin. The count included a “death specification” that the heroin he sold directly resulted in the death of a person.

“Today there is a young girl being raised without a mother because of the heroin sold by Jamarce Miller,” Dettelbach said. “We hope today’s sentence gives this defendant time to reflect upon the devastation he caused to that girl, that family and our community.”

“Jamarce Miller is the typical drug dealer that routinely does not consider the consequences of his actions,” said Geno Corley, Resident Agent in Charge of the Drug Enforcement Administration’s Cleveland office. “DEA and it’s law enforcement partners will continue to investigate and ultimately stop the reign of terror by the Jamarce Millers of the world.  Today, the community is safer because there is one less dope peddler selling poison on our streets.” 

Miller was part of a conspiracy led by Rayshawn Reed, who arranged for multiple kilogram quantities of heroin to be brought into Northeast Ohio from the Chicago area from March 2012 to August 15, 2012.

The heroin was then distributed to co-conspirators in Ashtabula, including Miller, who then resold the heroin to other co-conspirators and to heroin users. Heroin from the conspiracy that had been distributed by Miller resulted in the fatal heroin overdose of an Ashtabula-area resident on or about July 7, 2012, according to court documents.

Reed, Miller and the nine other people have been found guilty for their roles in the conspiracy. Reed was sentenced to 14 years in prison.

This case is being prosecuted by Assistant U.S. Attorneys Vasile Katsaros and Linda Barr following an investigation by the U.S. Drug Enforcement Administration and the Federal Bureau of Investigation, with assistance from the Ashtabula County Sheriff’s Office, the Ashtabula Police Department, the Trumbull/Ashtabula Group Task Force (TAG), the Ohio Bureau of Criminal Identification and Investigation (BCI), the Cuyahoga County Sheriff’s Office, and the Ohio State Highway Patrol.

Former Cuyahoga County employee Daniel Gallagher was sentenced to four years in prison today for engaging in a series of bribery conspiracies involving public officials, federal law enforcement officials announced today.

Gallagher, 62, of Strongsville, was also ordered to pay $87,000 in restitution by U.S. District Judge Sara Lioi. He previously pleaded guilty to eight counts, including Hobbs Act conspiracy, conspiracy to bribe programs receiving federal funds, destruction of records and subscribing a false tax return.

“This defendant was involved in several bribery schemes involving public officials,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “The FBI will continue efforts to root out corruption at any level.”  

Gallagher admitted to his involvement in several bribery schemes involving Frank Russo, Jimmy Dimora, J. Kevin Kelley, Kevin Payne, Samir Mohammad, Anthony Ma, Anthony Calabrese and others. All of those defendants have previously been found guilty of related offenses.

Gallagher worked as an employee in the Cuyahoga County Engineer’s Office until his retirement in 2002; he subsequently started a company called Eagle Consulting.

A company paid approximately $143,000 to Gallagher and Eagle Consulting related to efforts to keep theCounty Engineer’s Office at the Stonebridge complex. Gallagher in turn gave a portion of the money to Kevin Payne, who used it to pay for limousines, gambling trips and personal services for Dimora, according to court documents.

Other bribery schemes included orchestrating the use of certain software for the Engineer’s Office, with payments then going to Eagle Consulting, and helping steer another county contract to a business that paid $115,000 to Gallagher, which was distributed to Payne, Kelley and others. Eagle Consulting was also used as a way to funnel bribes to Kevin Kelley, who was a member of the Parma School Board, from a company that received a $1.8 million contract from the Parma Schools, according to court documents.

The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon and Ann C. Rowlandfollowing an investigation by the FBI and IRS – Criminal Investigation.

An Olmsted Falls man was sentenced to two years in prison today, the fifth person sentenced to prison for their roles 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.

William Bertini, 26, was also ordered to pay more than $206,000 in resitution to First Energy Corp. by U.S. District Judge Benita Pearson.           

Bertini and six other men pleaded guilty earlier this year to conspiracy to damage energy facilities. Previously sentenced are:

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.

Michael T. Butts, 33, of Brooklyn, is scheduled to be sentenced early next year.

“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.

“The potential of harm posed by these individuals to enrich themselves while risking lives and posing serious threats to our community will not be tolerated.  The FBI and our law enforcement partners will aggressively pursue and 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.

A Toledo man was sentenced to one year in prison and ordered to pay a $2,000 fine for his role in the illegal removal and disposal of asbestos-containing material, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

John J. Mayer, 52, pleaded guilty in July to violating the Clean Air Act.

“Mr. Mayer ignored the laws and regulations that are in place to protect the public,” Dettelbach said. “Protecting the environment, including the air we breathe, is a priority of my office and the Justice Department.”

“Improper removal and disposal of asbestos endangers human health, and exposure to asbestos fibers can prove fatal,” said Randall K. Ashe, Special Agent in Charge of U.S. EPA’s criminal enforcement program in Ohio.  “The Defendant oversaw the illegal removal of large quantities of asbestos-containing materials, which were ultimately dumped in three residential areas in Toledo.  This case should serve notice that U.S. EPA and its partner agencies are prepared to prosecute those who 'cut corners' by avoiding the costs of handling or disposing of asbestos properly.”

Mayer directed individuals to remove asbestos-containing insulation from boilers, duct work and pipes in a former manufacturing facility in Toledo between September and December 2010, in order that Mayer could sell the scrap metal from those items. This work was performed in violation of the federal Clean Air Act regulations regarding asbestos abatement, according to court documents.

The asbestos-containing insulation was not wetted at any time during the removal process; the City of Toledo, Division of Environmental Services, was not notified prior to the work commencing and there was not on site a person trained in the provisions of the federal asbestos regulations, according to court documents.

The illegally removed asbestos-containing insulation was placed into approximately 82 garbage bags, which were dumped at various locations throughout Toledo in violation of the requirement that such material be disposed at a site operated in accordance with federal law, according to court documents.

Timothy Byes, 32, of Toledo, also pleaded guilty to violating the Clean Air Act and is scheduled to be sentenced at a later date.

The investigating agencies in this case are the U.S. EPA Criminal Investigation Division, the Ohio Bureau of Criminal Identification and Investigation, the Ohio Environmental Protection Agency – Office of Special Investigations, the City of Toledo – Division of Environmental Services, all members of the Northwest Ohio Environmental Crimes Task Force.  The case was prosecuted by Assistant United States Attorney Gene Crawford and Special Assistant United States Attorney James J. Cha.

A Fremont man was sentenced to more than 24 years in prison after previously being found guilty of three counts related to child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Robert Lehman, 57, was arrested in January after investigators determined he downloaded more than 50 images of young boys being sexually abused.

Lehman was previously sentenced to eight years in state prison for corruption of a minor in 1987 and nine years in state prison for corruption of a minor and sexual imposition in 2009, according to court documents.

This case was prosecuted by Assistant U.S Attorney Alissa Sterling following an investigation by Immigration and Customs Enforcement -- Homeland Security Investigations.

A federal jury found Antun Lewis guilty of setting the May 2005 fire that killed nine people in Cleveland, Ohio, said United States Attorney Steven M. Dettelbach announced today.

Lewis, 29, of Cleveland, is scheduled to be sentenced March 18, 2013. He was convicted of one count of arson in U.S. District Court in Cleveland.

“Justice took a longer time coming, but justice was delivered,” Dettelbach said. “This case came about because of the incredible work and cooperation from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cleveland Police and Fire Departments and the prosecutors in the U.S. Attorney’s Office.”

“We hope this verdict brings some small measure of comfort to the families of the deceased,” Dettelbach said.

“This case highlights the fact that arson is a violent crime capable of destroying lives in addition to property,” said Michael Boxler, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division. “The ATF agents and prosecutors in this case were unwavering in their dedication to the victims and their pursuit of justice.”

The arson at 1220 East 87th Street on May 21, 2005, killed eight children and one adult, making it the deadliest intentionally set fire in Cleveland’s history. It occurred during a children’s sleepover birthday party, according to trial testimony.

Killed were: Fakih Jones, age 7; Malee’ya Williams, age 12; Shauntavia Mitchell, age 12; Earnest Tate, Jr., age 13; Miles Golden Cockfield, age 13; Antwon Jackson, Jr., age 14; Moses Williams Jr., age 14; Devonte Carter, age 15, and Medeia Carter, 33.

This case is being prosecuted by Assistant U.S. Attorneys David J. Sierleja, Robert W. Corts, Michael L. Collyer following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Cleveland Police Department and Cleveland Fire Department.

A grand jury returned a 23-count indictment charging six people for their roles in a conspiracy to hire undocumented workers at a chain of restaurants in Stark and Summit counties and pay them less than minimum wage and sometimes only in tips, said Steven M. Dettelbach, United States Attorney for the Northern District.

Prosecutors are also seeking to forfeit more than $16 million generated by the restaurants.

Indicted are owners Miguel Castro, age 44, and Monica Castro, age 43, both of Uniontown, Ohio; and managers Cesar Castro, age 28, of Akron; Aldo Castro, age 42, of Akron; Pedro Cervantes, age 39, of Mexico; and Gustavo Torres, age 45, of Kent, Ohio.

“The owners and managers of these restaurants took advantage of their workers’ immigration status for their own profit,” Dettelbach said.

“Employers have a legal responsibility to protect the integrity of their workforce,” said Marlon Miller, special agent in charge of ICE’s Homeland Security Investigations in Detroit, which covers Michigan and Ohio. “When companies engage in schemes that flout immigration laws, workers are often exploited and businesses that play by the rules are put at a significant disadvantage.”

The defendants face charges including conspiracy to harbor undocumented aliens, aiding and abetting the harboring of undocumented aliens, harboring undocumented aliens, conspiracy to commit mail fraud and mail fraud.  Miguel Castro and Monica Castro also are charged with making false statements to federal law enforcement officers.

Since 2002, the defendants owned and/or managed the seven “Mariachi Locos” and “Mariachi Cocos” chain of restaurants with locations in Akron, Stow, Tallmadge and North Canton.

The defendants engaged in the practice of hiring undocumented workers who were illegally present in the United States and conspired to shield these workers from detection by paying them in cash, excluding them from payrolls, leasing housing for the workers, and aiding the workers in obtaining fraudulent work documentation, according to the indictment.

The defendants also used the U.S. mail to submit false wage reports to the state of Ohio.  The defendants’ employment practices enabled them to enrich themselves because they paid the undocumented workers less than minimum wage and did not pay these workers for overtime hours worked, according to the indictment.

In some cases, the defendants paid these workers only the tips that the workers received from their customers, according to the indictment.

The indictment seeks the forfeiture of $16,474,870 in gross proceeds that the defendants earned as a result of the offenses.          

If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the 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 case is being prosecuted by Assistant U.S. Attorneys Lauren Bell and Phillip J. Tripi, following a joint investigation by agents of Department of Homeland Security and the Department of Labor -- 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.

The owners of a chain of head shops were among five people indicted for conspiracy to distribute synthetic cannabinoids for their sale of products with names such as spice and K2, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Indicted are: Sean Lightner and Sherry Lightner, both 38 and both of Grafton; Dale Drummond, 39, of Cleveland; Mark Picard, 32, of Whittier, Calif. and Nathan Albright, 28, of Glendale, Arizona.

“These defendants sold a product that was designed to mimic an illegal drug,” Dettelbach said. “No matter what it was labeled or whatever clever name it was given, it was illegal.”

Synthetic cannabinoids are a large family of chemically unrelated structures functionally similar to THC. Synthetic cannabinoids may contain Schedule I controlled substances or controlled substance analogues and have purported physchotropic effects when smoked or ingested.

The Lightners operated a chain of head shops (retail stores specializing in drug and smoking paraphernalia) doing business as Twilight Boutique, where they sold synthetic cannabinoids along with accessories such as bongs, pipes and rolling papers, according to the indictment.

They franchised the Twilight Boutique on Madison Avenue in Lakewood to Dale Drummond for a percentage of the store’s monthly revenue. Drummond also sold synthetic cannabinoids from the store, according to the indictment.

The Lightners expanded their business to include several locations in Ohio after they began selling synthetic cannabinoids. They control Twilight Corp., located on Royalton Road in Grafton, and the Twilight Boutique stores located on State Route 43 in Streetsboro, Cleveland Road West in Sandusky, Pearl Road in Brunswick, North Abbe Road in Elyria, Lorain Road in Fairview Park, Whipple Avenue in Plain Township, North Court Street in Athens, Midway Plaza in Tallmadge, South Alex Road in West Carrollton, West Fourth Street in Ontario and Clinton Plaza Drive in Oneonta, N.Y., according to the indictment.

The Lightners presented laboratory reports to others, including employees, alleging that the synthetic cannabinoids sold in the Twilight Boutique stores did not contain controlled substances or controlled substance analogues in an effort to give the appearance that the synthetic cannabinoids were legal when the Lightners knew they were illegal, according to the indictment.

Albright sold synthetic cannabinoids through his company, Desert Distribution, LLC and Albright and Picard sold synthetic cannabinoids through their company, Royal Dutch, LLC.

Prosecutors are also seeking to forfeit more than $225,000 in cash seized, as well as three vehicles and property in Grafton, according to the indictment.

This case is being prosecuted by Assistant United States Attorney Teresa Dirksen following an investigation by the Drug Enforcement Administration Drug Enforcement Administration—Tactical Diversion Squad, Internal Revenue Service -- Criminal Investigations, Lorain County Drug Task Force, Medina County Drug Task Force, Portage County Drug Task Force, Westshore Enforcement Bureau, MEDWAY Drug Enforcement Agency, METRICH Enforcement Unit, Cuyahoga County Sheriff’s Office, Linndale Police Department, Lakewood Police Department, Cleveland Police Department, Ontario Police Department, Sandusky Police Department, Ohio HIDTA and the Ohio State Patrol.

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

An indictment is only a charge. The defendants are innocent until proven guilty beyond a reasonable doubt.

A Canton couple and one of their employees were indicted for engaging in a conspiracy to defraud the United State Department of Education of more than $2.3 million by obtaining fake high school diplomas for prospective students, fraudulently applying for financial aid on their behalf by representing that the students had the necessary educational credentials, and then enrolling them in the college that the couple operated, law enforcement officials said.

Named in the seven-count indictment are:  John “Richard” Ceroni, 64, and Adale “Marie” Cernoni, 62, both of Canton, and Tammy Pyle, 43, of Waynesburg, Ohio.

All three are charged with conspiracy to commit mail fraud and wire fraud.  The Ceronis are also charged with one count of conspiracy to launder money and four counts of engaging in monetary transactions in property derived from unlawful activity.  Richard Ceroni also faces one count of making a false statement.

“These defendants stole millions of dollars that were intended to help students pay for college and insteadblew it on jewelry, lingerie, cruises, and a Vegas vacation,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “We will continue to root out waste, fraud and abuse of federal programs wherever we find it.”

“These defendants ripped off taxpayers to the tune of more than $2 million,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “They are now being brought to justice thanks to a collaborative effort.”

“Federal student aid exists so that individuals can pursue and make their dream of a higher education a reality.  It is not to be used as a personal slush fund, which today's indictment alleges this couple did,” said Thomas D. Utz Jr. Special Agent in Charge of the U.S. Department of Education Office of Inspector General's North Central Regional Office. “As the law enforcement arm of the U.S. Department of Education, our mission is to ensure that those who steal student aid or game the system for their own selfish purposes are stopped and held accountable for their criminal actions.”

"Richard Ceroni and his co-defendants built a house of cards laced with a web of financial lies," said Kathy Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "The underlying structure fell apart and exposed these individuals for who they really are.. Operating a not-for-profit college does not give you a license to steal."

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

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

Richard Ceroni was dean and director of education at Carnegie College, while Marie Ceroni was the director of Carnegie and was responsible for financial matters at the school.  They and Pyle purported to work as volunteers at Carnegie.

Richard Ceroni was also founder of Historical Chapel Ministries (HCM), which was registered as a tax-exempt charitable organization.  It had offices in the same building as Carnegie College in Suffield, Ohio.  Both Ceronis held themselves out as ministers of HCM, but it did not have regular services or congregants, according to the indictment.

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

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

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

Pyle took a “high school diploma test” for students, while at other times provided test answers to the students.  Marie Ceroni paid Adison High School, which provided diplomas using the graduation date on which the student would have graduated from high school had they completed high school in the normal course.  According to the indictment, sometimes those dates predated general public access to the Internet.

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

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

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

An indictment is only a charge. The defendants are innocent until proven guilty beyond a reasonable doubt.

Eric V. Bartoli, who was indicted in 2003 on a 10-count indictment and has been a fugitive for more than a decade, has been arrested in Peru, said Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation and  Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Bartoli is accused of operation a large-scale ponzi scheme from 1995 through 1999.  Bartoli allegedly created and operated a company by the name of Cyprus Funds, Inc., which was based in Doylestown, Ohio and incorporated in Central America and Belize.  Bartoli and his co-conspirators allegedly operated Cyprus to sell certificates of deposit and unregistered mutual funds.  Cyprus raised approximately $65 million from an estimated 800 investors in Latin America and the United States.  Some of Cyprus’s victims include retirees, according to court records.

Bartoli was sued in 1999 by the Securities and Exchange Commission on charges involving the Cyprus Funds, Inc.  Bartoli did not appear at a scheduled hearing regarding the SEC charges.  He was subsequently found in contempt of court and a civil arrest warrant was issued.  Bartoli had fled Ohio and was arrested in New Hampshire.  Bartoli was not detained at that time and became a fugitive.

A 10-count federal indictment was filed against Bartoli in the U.S. District Court for the Northern District of Ohio in October 2003.  He was charged with conspiracy, securities fraud, sale of unregistered securities, wire fraud, mail fraud, money laundering, and attempted income tax evasion.

Bartoli has been featured on shows including American Greed and Life on the Run and on a wanted poster by the FBI posted on www.fbi.gov. 

Bartoli was taken into custody this morning at 6:15a.m. in Chorillos, Lima, Peru by the Peruvian National Police without incident. The operation was a joint effort between the FBI, Diplomatic Security Service, and the Peruvian National Police.  The United States Government appreciates the Government of Peru’s cooperation on this sensitive case. 

“We are thankful for our continued partnership with the international law enforcement community.  A team of Cleveland and international FBI resources worked closely with the Peruvian authorities to locate and apprehend Eric Bartoli,” Anthony said.  “We hope that the long awaited prosecution of Bartoli will provide some satisfaction to the many individuals he defrauded.” 

“We are gratified by the all the hard work that was done to bring Mr. Bartoli into custody,” Dettelbach said. 
         

Three Cleveland men sentenced to lengthy prison terms this week for their roles in unrelated bank robberies, 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.

Perry Johnson, 21, was sentenced to 25 years in prison. Charles D. Moore, 28, was sentenced to more than 16 years in prison and Mitchell Perkins, 28, was sentenced to nearly 12 years in prison.

“These three defendants put everyday customers in grave danger,” Anthony said. “The sentences demonstrate that the FBI Violent Crimes Task Force will continue efforts to investigate and remove menacing criminals from our streets.”

Johnson was found guilty of two armed robberies of CVS pharmacies last year in which he threatened the use of a firearm and took cash and prescription medication.

Johnson robbed the CVS pharmacy at 10022 Madison Avenue on Nov. 16 and the CVS pharmacy at 3171 West Boulevard on Nov. 23, 2012.

In the first robbery, he threatened the use of a firearm and took five bottles of prescription medication and cash from a CVS employee, according to the indictment. In the second robbery, Johnson pointed a firearm at CVS employees and took cash, 30 bottles of prescription medication and other merchandise, according to court documents.

Moore was found guilty of one count of armed bank robbery. This charge arises from the July 9, 2013, bank robbery of the PNC Bank at 20711 Chagrin Boulevard. in Shaker Heights, when Moore held the bank manager at gunpoint and stole approximately $46,000 from the bank's tellers, according to court documents.

Perkins was found guilty of armed bank robbery and using a firearm during the commission of a felony. He robbed the U.S. Bank at 5154 Wilson Mills Road in Richmond Heights, Ohio, on May 29, 2012, according to court documents.

The cases were all investigated by the Federal Bureau of Investigation and handled by prosecutors in the U.S. Attorney’s Office.

A Parma Heights man was sentenced to more than three years in prison and ordered to pay nearly $1.2 million in restitution, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, IRS-Criminal Investigation Special Agent in Charge.
 
Bryan D. McCallum previously pleaded guilty to a two-count information charging him with a false claims conspiracy and with making 30 false claims. McCallum is 40 years old, according to court records.

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

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

McCallum worked as an accountant/bookkeepr for two corporations owned and controlled by Brian D. Krantz, 46, of Twinsburg. These companies engaged in financial services and/or real estate investment business activities.

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

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

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

Krantz was pleaded guilty to earlier this year to a 31-count indictment related to filing income tax refunds totaling more than $8.8 million. The U.S. Treasury issued 17 refund checks totaling approximately $3,615,586 payable to Krantz and various corporations controlled by Krantz as a result of the alleged scheme, according to the court documents.

He is scheduled to be sentenced in March.

The government’s 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.

A Coshocton pharmacist was sentenced to more than four years in prison and ordered to pay more than $2.1 million in restitution related to health care fraud, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Ohio Attorney General Mike DeWine.

Barbara Elise Miller pleaded guilty earlier this year in federal court to to five counts of health care fraud and one count of adulteration of drugs after an investigation found that she fraudulently received more than $2 million from state, federal, and private medical insurance companies by way of fraudulent billing practices.  

“This defendant not only defrauded victims out of millions of dollars, but her adulteration of drugs also caused health complications for a child,” Dettelbach said.

"This defendant likely thought she could get away with these crimes, but there are checks and balances in place to make sure that those engaging in heath care fraud don't get away with it," DeWine said. 

The crimes happened during Miller's time as the owner and operator of Coshocton's Three Rivers Infusion and Pharmacy Specialists, a medial infusion supply company which also provided home health services and medical supplies. Between 2003 and 2009, Miller knowingly and willfully executed a scheme to defraud health care benefit programs such as Ohio Medicaid, Medical Mutual of Ohio, Anthem Blue Cross/Blue Shield of Ohio, TriCare, and Medicare, according to court documents.

Miller filed more than $1 million worth of claims for services using a false provider name, overstated the amount of nursing time needed to provide certain injections, and made fraudulent claims regarding the dosage and frequency of which certain drugs were dispensed, according to court documents.

Miller also altered the purity, quality, and strength of the drug Kineret, which is used to reduce the pain and swelling associated with moderate to severe rheumatoid arthritis, according to court documents.

The case was prosecuted by Assistant U.S. Attorney Rebecca Lutzko and attorneys with Ohio Attorney General DeWine's Health Care Fraud Section.  The case was investigated by Attorney General DeWine's Medicaid Fraud Control Unit, the Ohio Department of Insurance, the United States Department of Health and Human Services, Office of the Inspector General, and the Federal Bureau of Investigation.

A Cleveland woman was sentenced to nearly four years in prison and ordered to pay $78,004 in restitution for financial crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Jocelyn Hale, 32, was sentenced to 45 months of incarceration after pleading guilty in October to one count of conspiracy to commit bank fraud and money laundering, one count of conspiracy to commit wire fraud and money laundering, one count of conspiracy to commit mail fraud and money laundering, four counts of mail fraud, and one count of aggravated identity theft. 

Hale’s co-defendant, Angelique Bankston, 42, of South Euclid, was convicted by a jury on November 21, 2013 after almost a three week trial of all 23 counts against her, including the counts listed above and one count of wire fraud, five counts of bank fraud, four additional counts of mail fraud, four additional counts of aggravated identity theft, one count of money laundering, and one count of making a false statement.

In her plea agreement, Hale admitted to using identities of several individuals without their authority, and assisting Bankston to defraud Citizens Bank, Lending Club Corporation, and
Wells Fargo Bank.  Bankston and Hale funded one Wells Fargo Bank account with fraudulent checks totaling $13,027.22, and then attempted to quickly remove and launder the fraudulent proceeds.  

Bankston and Hale also funded a second Wells Fargo Bank account with a fraudulent tax return check in the amount of $6,172, and a Citizens Bank account with illegally obtained funds from a fraudulently obtained Lending Club loan in the amount of $30,000.  Once the illegal obtain funds were deposited, Bankston and Hale again quickly attempted to remove and launder those funds.  Finally, Hale admitted to assisting Bankston to defraud the Ohio Department of Job and Family Services by filing false and fraudulent claims for unemployment benefits using a fictitious company and fictitious employees based on stolen identities.

Bankston’s sentencing is currently scheduled for April 23, 2014 at 10:00 a.m. at the United States Federal Courthouse in Akron, Ohio.

This case was prosecuted by Assistant United States Attorney Mark S. Bennett and Special Assistant United States Attorney Perry D. Mastrocola, following an investigation by the Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, and United States Postal Inspection Service offices in Cleveland.

A Cuyahoga Falls man was sentenced to more than eight years in prison and ordered to pay more than $2 million in restitution for paying bribes to public officials as part of the Cuyahoga County corruption investigation, law enforcement officials said.

Steven W. Pumper, 49, was sentenced to 97 months in prison by U.S. District Judge Sara Lioi. She also ordered Pumper to pay restitution in the amounts of $1.7 million to Phillips Health Care, $186,000 to Cuyahoga County, $117,000 to Maple Heights City Schools and $15,000 to Parma City Schools.

Pumper previously pleaded guilty to a nine-count information for charges including conspiracy to commit bribery of programs receiving federal funds, obstruction of justice, bribery, mail fraud, structuring and mail fraud.

Pumper, the former president and CEO of DAS Construction, admitted to paying bribes to public officials in return for official actions on his behalf. For example, Pumper provided $33,000 in cash to then-Cuyahoga County Commissioner Jimmy Dimora, and also provided free improvements to Dimora’s home worth tens of thousands of dollars. These actions were done in return for Dimora’s support on several projects in which Pumper was involved, including securing funding for development projects.

In another example, Pumper provided a political donation to the Cuyahoga County Democratic Party that was specifically to be used by the campaign of Parma School Board member J. Kevin Kelley. In return, Kelley helped Pumper’s company secure a $96,000 contract from the school district.

Dimora is currently serving a 28-year prison sentence while Kelley is scheduled to be sentenced later this month.

This case was prosecuted by Assistant U.S. Attorneys Ann C. Rowland and Antoinette T. Bacon following an investigation by the Federal Bureau of Investigation’s Cleveland office and the Internal Revenue Service – Criminal Investigation.

Margaret Monone Greenaway was sentenced today to 54 months imprisonment for claiming false income tax refunds totaling $5,271,794 for the years 2010 and 2011, said Steven M. Dettelbach, United States Attorney.  The sentence was imposed by United States District Judge David D. Dowd, Jr., who also imposed a three-year term supervised release following Greenaway’s incarceration.

Greenaway pleaded guilty to the two-count indictment against her on October 17, 2013.  In her written plea agreement, Greenaway admitted to filing income tax returns under her name during a prior marriage, Margaret M. Demaria-Susevich, using a “single” filing status, on which she claimed refunds to which she was not entitled of $1,326,671 for 2010 and $3,945,123 for 2011.  The claimed refunds were based on purported wages and withholding reflected in fake W-2 forms she attached to the returns.  She fabricated the W-2 forms by using the employer information on W-2 forms issued to her husband and inserting made-up amounts of wages and withholding purportedly paid to her.  Greenaway never worked for that employer.  Greenaway received the requested $3.9 million refund check for 2011 and deposited it into new bank accounts she opened.  The bank, however, alerted law enforcement authorities of possible fraud involving the check, enabling the IRS to retrieve the funds before she could spend them.

Greenaway, age 53, resided in Willowick, Ohio, until being placed in pre-trial detention in early July 2013.  After being arrested on the indictment on May 16, 2013, she was initially released on bond.  Judge Dowd revoked her bond, however, after finding that she had violated the terms of her release.  She has been in federal custody since that time, including a period in which she was evaluated for mental competency to stand trial.  After a hearing in which he found Greenaway to be competent, Judge Dowd scheduled the case for trial.  Greenaway pleaded guilty the day before her trial was set to begin. 

The case was prosecuted by Assistant United States Attorney John M. Siegel following an investigation by the Internal Revenue Service – Criminal Investigation, Cleveland, Ohio.

A federal grand jury returned a two-count indictment charging Jory Rhodes, age 26, and Brandon Haley, age 28, both of Conneaut, Ohio, with theft of firearms from a Federal Firearms Licensee and possession of a stolen firearm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges that on October 25, 2012, Rhodes and Haley stole a firearm from a Federal Firearms Licensee, Great Lakes Outdoor Supply, in Madison Township.  Specifically, it is alleged that Rhodes and Haley visited the Great Lakes Outdoor Supply with the intent to steal something of value, and that when the employees were not looking, Rhodes reached into a display case and stole a $1,129 Remington Arms .45 caliber pistol while Haley acted as lookout.   

If convicted, the defendants’ sentence 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 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.  The matter is being prosecuted by Assistant United States Attorney Adam Hollingsworth.

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.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury returned a one-count indictment charging Oscar Mejia Gomez, age 29, of Honduras, with illegal re-entry into the United States after deportation.

The indictment charges that or about November 7, 2013, Gomez , an alien, was found in the United States after having been deported on or about August 11, 2011, at or near the Phoenix Mesa Gateway Airport, Mesa, Arizona, and not having obtained the express consent of the Secretary of Homeland Security to reapply for admission to the United States.

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

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

A Kent, Ohio, woman is accused of underreporting her taxable income by more than $240,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Youlanda Banks, age 57, was charged via criminal information with two counts of making or subscribing a false tax return.

Banks filed a tax return for 2007 stating her total income was $54,059 when, in fact, it was approximately $157,238. She filed a tax return for 2008 stating her total income was $3,169 when, in fact, it was $143,765, according to the information.

This case is being prosecuted by Assistant United States Attorney Robert J. Patton following an investigation by the Internal Revenue Service.

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 Justice Department filed a lawsuit late yesterday against the owners, builders and designers of a 54-unit condominium complex in Hartville, Ohio, for violations of the Fair Housing Act (FHA).  The lawsuit alleges that the defendants violated the law when they designed and constructed the complex with barriers that make it inaccessible to persons with disabilities.

“Since 1991, the Fair Housing Act has required that when new multifamily housing is built, it be accessible to persons with disabilities,” said Acting Assistant Attorney General Jocelyn Samuels for the department’s Civil Rights Division.  “When condominium complexes are built with steps and other barriers, those with disabilities are denied that equal housing opportunity.”

“We will continue to work to make sure people with disabilities are free to live where they choose, as is their legal right,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio.

The suit, filed in U.S. District Court in Cleveland alleges that various barriers at the Windham Bridge property in Hartville deny persons with disabilities equal access to 52 condominiums and the associated public and common-use areas at the property that are covered by the FHA.  Such barriers include inaccessible building entrances; no accessible parking spaces; insufficient accessible routes into and through the units; and kitchens and bathrooms that are inaccessible to persons in wheelchairs.

The lawsuit arises from a complaint filed with the Department of Housing and Urban Development (HUD) by the Fair Housing Advocates Association (FHAA), a private nonprofit corporation whose mission is to provide education regarding fair housing laws and to ensure compliance with those laws in Ohio.  FHAA inspected the Windham Bridge property and observed accessibility barriers.  After conducting an investigation, HUD issued a charge of discrimination and referred the case to the Justice Department.

“The Fair Housing Act's accessibility requirements have been on the books for over two decades.  So, today, when a person with a disability cannot enter the front door of a condominium complex, or find accessible parking there, it sends the message: 'You are not welcome here,'" said HUD's Acting Assistant Secretary Bryan Greene for Fair Housing and Equal Opportunity.  “HUD and DOJ are committed to enforcing the nation’s fair housing laws to make certain persons with disabilities have the same access to multifamily housing as anyone else."

Named in the suit are the prior owners and builders of the property, Noble Homes Inc., Guardian Property Management Inc., Dean Windham, Hersh Construction Inc., and John Hershberger, as well as the designer of the property, Milton Studer, and his firm, Studer Architects LLC.  The suit seeks a court order requiring the defendants to retrofit the Windham Bridge property to bring it into compliance with the FHA, as well as monetary damages for FHAA and for persons harmed by the lack of accessibility at the complex.

The federal FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status and disability.  Among other things, the Act requires all multifamily housing constructed after March 12, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units.  More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.  Individuals who believe that they may have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at fairhousing@usdoj.gov, or contact HUD at 1-800-669-9777.

The complaint is an allegation of unlawful conduct.  The allegations in the complaint must still be proven in federal court.

Osaka, Japan-based Toyo Tire & Rubber Co. Ltd. has agreed to plead guilty and to pay a $120 million criminal fine for its role in two separate conspiracies to fix the prices of automotive components involving anti-vibration rubber and driveshaft parts installed in cars sold in the United States and elsewhere, the Department of Justice announced today.

According to a two-count felony charge filed today in U.S. District Court for the Northern District of Ohio in Toledo, Toyo engaged in a conspiracy to allocate sales of, to rig bids for, and to fix the prices of automotive anti-vibration rubber parts it sold to Toyota Motor Corp., Nissan Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and certain of their subsidiaries, affiliates and suppliers, in the United States and elsewhere.  According to the charge, Toyo and its co-conspirators carried out the anti-vibration rubber parts conspiracy from as early as March 1996 until at least May 2012.

In addition, according to the charge, Toyo engaged in a separate conspiracy to allocate sales of, and to fix, raise and maintain the prices of automotive constant-velocity-joint boots it sold to U.S. subsidiaries of GKN plc, a British automotive parts supplier. According to the charge, Toyo and its co-conspirators carried out the constant-velocity-joint boots conspiracy from as early as January 2006 until as late as September 2010.

Toyo, which has subsidiaries based in Franklin, Ky., and White, Ga., has agreed to cooperate with the department’s ongoing investigation.  The plea agreement is subject to court approval.

“Today’s charge is the latest step in the Antitrust Division’s effort to hold automobile part suppliers accountable for their illegal and collusive conduct,” said Renata B. Hesse, Deputy Assistant Attorney General for the Department of Justice’s Antitrust Division.  “The division continues to vigorously prosecute companies and individuals that seek to maximize their profits through illegal and anticompetitive means.”

Automotive anti-vibration rubber parts are comprised primarily of rubber and metal, and include engine mounts and suspension bushings.  They are installed in automobiles for the purpose of reducing road and engine vibration.  Automotive constant-velocity-joint boots are composed of rubber or plastic, and are used to cover the constant-velocity-joints of an automobile to protect the joints from contaminants.

The department said the company and its co-conspirators carried out the conspiracies through meetings and conversations, discussed and agreed upon bids, price quotations and price adjustments, and agreed to allocate among the companies certain sales of the anti-vibration rubber and constant-velocity-joint boots parts sold to automobile and component manufacturers.

Including Toyo, 22 companies and 26 executives have been charged in the Justice Department’s ongoing investigation into the automotive parts industry.  All 22 companies have either pleaded guilty or have agreed to plead guilty and have agreed to pay more than $1.8 billion in criminal fines.  Of the 26 executives, 20 have been sentenced to serve time in U.S. prisons or have entered into plea agreements calling for significant prison sentences.

Toyo is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

The charges are the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI.  Today’s charges were brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern District of Ohio.  Anyone with information concerning the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1–888–647–3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cleveland Field Office at 216-522-1400.  

Gary C. Green, Jr., 43, of Johnstown, New York, was charged with travel to engage in illicit sexual contact with a minor, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The criminal information charges that from on or about August 3, 2013, through on or about August 4, 2013, Green knowingly traveled in interstate commerce, from the State of New York to the State of Ohio, for the purpose of engaging in illicit sexual conduct with another person, that is, a fifteen-year-old girl.

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

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

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.

Several Department of Justice employees will be honored for their exemplary service in cases that had a profound impact on Northern Ohio.

The employees are being honored for their work on the Cuyahoga County corruption investigation, the investigation into Omnicare Corp. that resulted in a $50 million settlement, the successful prosecution of the LSP street gang in Youngstown for racketeering, including attempted and narcotics trafficking and two dozen convictions following the collapse of the St. Paul Croatian Federal Credit Union.

“Each of these people represents the best of federal law enforcement,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “They worked for months -- sometimes years -- to make Northern Ohio a safer place by bringing down a decade-old cycle of corruption or ensuring the elderly would receive proper healthcare or dismantling a violent street gang. They have taken on the hard challenges and succeeded in making our community better.”

“Each one of these well-deserving recipients went above and beyond to get the job done and serve our community,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.  “They were determined and dedicated to seeing justice prevail, and for that, we honor and thank them”

“The IRS, Criminal Investigation Chief's Investigative Excellence Award is presented in recognition and appreciation of the outstanding commitment and dedication to excellence by the multiple agencies in support of their investigative efforts relative to the Cuyahoga County corruption investigation. In addition, the multiple agencies who were involved in the St. Paul Croatian Federal Credit Union investigation were presented the Commendation Award for Excellence in support of their investigative efforts,” said Kathy A. Enstrom, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office.  “These investigations exemplify the outstanding partnership and cooperation.”

Cuyahoga County Corruption Investigation

The Cuyahoga County corruption investigation has resulted in more than 60 convictions, including the former County Commissioner, County Auditor and two Common Pleas Judges. The case uncovered several pay-to-play bribery schemes in which public officials awarded jobs, contracts and other favors in exchange for cash, trips and other gifts. Former County Commissioner Jimmy Dimora’s 28-year prison sentence is believed to be the longest sentence handed out for a public corruption conviction. The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service.

Those being honored with the Attorney General’s Award for Distinguished Service are: Assistant United States Attorneys Antoinette T. Bacon, Henry DeBaggis, Nancy L. Kelley, Sharon L. Long, Robert J. Patton, Justin J. Roberts, Ann C. Rowland, Bernard A. Smith, FBI Special Agents Gregory D.L. Curtis, Melissa L. Fortunato, Raymond Michael Massie, Kirk P. Spielmaker, William M. Werner, Christine C. Oliver and IRS Special Agent Kelly D. Fatula.

Omnicare Settlement

Omnicare, Inc. paid a $50 million civil penalty to resolve claims that its various pharmacy facilities improperly dispensed controlled substances to patients at long-term care facilities across the country, such as routinely dispensing controlled substances to residents of long-term facilities without a prescription signed by a practitioner. The case was investigated by the Drug Enforcement Administration.

Receiving the Director’s Award for Superior Service by an Assistant United States Attorney – Civil and a DEA Commendation are Kent W. Penhallurick and Steven J. Paffilas. Receiving the United States Attorney’s Award for Distinguished Public Service is DEA Special Agent Scott Brinks.

LSP Gang Prosecution

Twenty-two people were convicted of racketeering and other crimes for their roles in a conspiracy in which the LSP street gang used violence, including drive-by shootings, to control territory and sell heroin, cocaine and other drugs in Youngstown. Gang leaders Derrick Johnson Jr. was sentenced to 65 years in prison and Daquann Hackett was sentenced to 37 years in prison. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Youngstown Police Department.

Receiving the Director’s Award for Superior Service by an Assistant United States Attorney – Criminal are Robert F. Corts and Daniel J. Riedl. Receiving the United States Attorney’s Award for Distinguished Public Service is ATF Special Agent John Smerglia.

St. Paul Croatian Federal Credit Union Investigation

When the St. Paul Croatian Federal Credit Union went into conservatorship and then forced liquidation in 2010, the resulting $170 million loss made it the largest credit-union failure in American history. The subsequent criminal investigation revealed a decade-long scheme in which the credit union’s Chief Financial Officer Anthony Raguz made more than 1,000 fraudulent loans and payments in return bribes, gifts and other kickbacks. More than two dozen people were convicted for their roles in the conspiracy, including Raguz (currently serving 14 years in federal prison) and Koljo Nikolovski (currently serving an 18-year prison sentence), a man who wired more than $2.3 million in ill-gotten money to Macedonia.

Those being honored with the IRS Commendation Award are Assistant U.S. Attorneys John D. Sammon (retired), Bridget M. Brennan, James Morford, Paralegal Specialist Daniel Nugent, IRS Special Agents Frank Brown and Rob Thatcher, FBI Special Agents Derek Kleinmann, Steve Sloan, and Mike West, FBI Forensic Accountant Leann Royal, Eastlake Detectives Ted Kroczak and Chris Bowersock, and FBI TFO John Ypsilantis.

FBI Director James Comey is scheduled to present the awards during a private ceremony in Cleveland on Nov. 25.

Miles E. Price, 29, of Crestline, 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 June 3, 2013, through on or about September 2, 2013, Price 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 from on or about June 3, 2013, through on or about October 23, 2013, Price possessed a computer that contained child pornography.

The actual 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.

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 federal grand jury returned an indictment against two executives of a Japanese automotive supplier for their roles in an international conspiracy to fix prices of automotive anti-vibration rubber parts sold to Toyota and installed in U.S. cars, the Department of Justice announced today.

The indictment, filed yesterday in U.S. District Court for the Northern District of Ohio in Toledo, charges Masao Hayashi and Kenya Nonoyama, both Japanese nationals, with participating in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to allocate the supply of, to rig bids for and to fix, raise and maintain the prices of anti-vibration rubber parts sold to Toyota Motor Corp., Toyota Motor Engineering & Manufacturing North America Inc. and affiliated companies (collectively Toyota) for installation in automobiles manufactured and sold in the United States and elsewhere.

Automotive anti-vibration rubber products are comprised primarily of rubber and metal, and include engine mounts and suspension bushings.  They are installed in automobiles for the purpose of reducing road and engine vibration.

The indictment alleges, among other things, that from as early as March 1996 until at least December 2008, Hayashi and Nonoyama and their co-conspirators conducted meetings and communications in Japan to reach collusive agreements.  The indictment alleges that the conspiracy involved agreements affecting the Toyota Corolla, Avalon, Tacoma, Camry, Tundra, Sequoia, Rav4, Sienna, Venza and Highlander.

“Today’s indictment reaffirms the Antitrust Division’s commitment to hold executives accountable for actions that corrupt the competitive landscape and harm consumers,” said Renata B. Hesse, Deputy Assistant Attorney General for the Department of Justice’s Antitrust Division.  “The Antitrust Division continues to work closely with its fellow competition enforcers abroad to ensure that there are no safe harbors for executives who engage in international cartel crimes.”

Hayashi and Nonoyama are charged with a violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Including Hayashi and Nonoyama, 21 companies and 26 executives have been charged in the Justice Department’s ongoing investigation into the automotive parts industry.  To date, more than $1.6 billion in criminal fines have been obtained and seventeen of the charged executives have been sentenced to serve time in U.S. prisons or have entered into plea agreements calling for significant prison sentences.

The charges are the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI.  Today’s charges were brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern District of Ohio.  Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at (888) 647–3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cleveland Field Office at (216) 522-1400.

A grand jury returned a one-count indictment charging Fred M. Mallard, 69, with one count of Theft of Government Property, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Mallard stole and converted to his own use, approximately $57,252 in Social Security payments made to his mother after her death.

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.