Northern District of Ohio

Four people were indicted on charges of wire fraud, mail fraud and conspiracy to launder money for their roles in a scheme to defraud a Cleveland Heights charter school out of more than $400,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Indicted are: Joel B. Friedman, 65, of Mayfield Heights; Jeffrey A. Pope, 46, of Bowie, Maryland; Marianne Stefanik, 64, of Parma, and Virgil B. Holley, 51, of Cleveland Heights.

“These defendants are accused of taking money intended for students and using it to enrich themselves,” Dettelbach said.

“Joel Friedman and his co-conspirators violated the trust of taxpayers and the students of Greater Heights Academy,” said Kathy Enstrom Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.  “Running a charter school does not give you a license to steal.”

Friedman served as chairman of Greater Heights Academy, a charter school located in Cleveland Heights. Stefanik worked as Friedman’s secretary at the school. Pope operated a consulting business in Maryland known as R&D International. Holley worked as Friedman’s employee at GHA in various capacities, including starting Holley Enterprises to provide security at GHA.

Around 2006, Friedman approached Pope with a proposition for Pope to make extra money. Friedman and Stefanik provided Pope with legitimate previous orders to use as templates, which he then used to create fraudulent invoices on R&D letterhead. Stefanik then processed the payments, knowing the invoices were false. Friedman then called Pope and instructed him on how much of the money he could keep and how much he should return to Friedman, according to the indictment.

The defendants caused a loss of approximately $287,269 to GHA and its students as a result of the scheme, $14,000 of which was retained by Pope, according to the indictment.

Beginning in 2006, Holley, at Friedman’s suggestion, began submitting false invoices to GHA for work that Holley Enterprises did not perform. Upon receipt of a check from GHA, Friedman would tell Holley whether the payment was for a legitimate invoice or whether the proceeds were to be diverted to Friedman personally or an entity Friedman controlled, according to the indictment.

As a result of this scheme, the defendants caused a loss to GHA and its students of approximately $117,000, according to the indictment.

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

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

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

A former employee of Taupa Lithuanian Credit Union was criminally charged for his role in a conspiracy that led to the Cleveland institution’s collapse earlier this year, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.

Michael Ruksenas, 33, of Naples, Florida, was charged via criminal information with one count of conspiracy to commit theft or embezzlement from a credit union. His role in the conspiracy resulted in a loss to Taupa of more than $480,000, according to the charges

“This defendant is part of a group that took advantage of the trust of hundreds of people for their own personal gain,” Dettelbach said.

“Michael Ruksenas is accused of being a willful beneficiary of a financial scam being committed on members of the Taupa Lithuanian Credit Union,” Anthony said. “The FBI will continue efforts to see that fraudsters such as Mr. Ruksenas are brought to justice.”

From 2007 through this year, Ruksenas, Alex Spirikaitis (not charged herein) and others engaged in a conspiracy to commit theft or embezzlement from the credit union, according to the information.

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 the conspiracy, Taupa and the National Credit Union Association (which insures credit unions) lost approximately $481,502, according to the information.

On July 12, 2013, the NCUA and the Ohio Department of Commerce took possession of Taupa and placed it into receivership due to its insolvency. Taupa had about 1,150 members and assets of approximately $24 million, according to the information.

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

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

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

A Toledo man was sentenced to more than nine years in prison for drug and firearms convictions, 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.

United States Senior District Judge James G. Carr sentenced Rashaad J. Doyle, age 30, to 100 months imprisonment, for possessing with intent to distribute approximately 350 grams of heroin and for being a felon in possession of a firearm. 

A federal grand jury returned a two-count indictment against Doyle on October 17, 2012 stemming from the seizure of the heroin and  a rifle recovered from Doyle’s residence on September 21, 2012. 

Doyle was forbidden by law from having a firearm due to previous convictions in Lucas County Common Pleas Court for possession of marijuana, aggravated assault and having weapons while under disability.  

This case is being prosecuted by Assistant United States Attorneys Thomas P. Weldon and Matthew Spaulding. The case was investigated by the Federal Bureau of Investigation, the Toledo Police Department and the Toledo Metro Drug Task Force.

A Toledo man was sentenced to more than nine years in prison for a firearms conviction, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.

Robert Leal, 62, was sentenced to 100 months in prison by U.S. District Judge James Carr after pleading guilty earlier this year to being a felon in possession of a firearm. 

On Jan. 25, 2013, law enforcement officers searched Leal’s home and was found to have a Raven 25-caliber handgun and a Mossberg 12-gauge pistol grip shotgun. He was forbidden by law from having a firearm due to previous convictions Michigan related to drug and firearms crimes, according to court documents.  

This case is being prosecuted by Assistant United States Attorney Alissa P. Sterling. The case was investigated by the Federal Bureau of Investigation, the Toledo Police Department and the Toledo Metro Drug Task Force.

The Cleveland Clinic and United States Attorney’s Office, together with many partners, will host a daylong summit on the growing heroin epidemic in Northeast Ohio on Thursday, November 21 at the InterContinental Hotel.

“Heroin: A Crisis Facing Our Entire Community” will look at heroin abuse from the perspectives of the medical, treatment, education, prevention and law enforcement communities. The day will culminate with the development of community action plan that will lay out strategies and next steps in turning back the tide of heroin addiction.

“Greater Cleveland’s leading institutions are coming together to find solutions to this public health crisis,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “The fight against heroin is not just about arrests.  It is also about prevention and treatment.”

“We support the efforts of the U.S. Attorney’s Office for bringing together this collaboration to stop the escalating abuse of heroin taking place in our communities,” said David Rowan, Cleveland Clinic’s Chief Legal Officer. “Through this summit, we have an opportunity to fight this battle on multiple levels by bringing together healthcare providers, criminal investigators, and experts in addiction and counseling.” 

The summit will take place Nov. 21 from 8 a.m. until 3:30 p.m at the InterContinental Hotel, 9801 Carnegie Ave., Cleveland, 44106.

The threat is real. Heroin overdose fatalities are up about 400 percent in recent years in parts of Northeast Ohio. Police and prosecutors report a huge influx in both the availability of heroin and the number of heroin-related crimes.

There are also significant challenges from this crisis that are facing the medical profession. Doctors are grappling with how to effectively treat pain will responsibly prescribing opioids. Treatment professionals struggle with how to provide resources and help to people struggling with addiction, while parents, educators and others search for effective strategies to keep people from trying heroin in the first place.

The daylong event will feature speakers at the forefront of dealing with the heroin epidemic, as well as panel discussions and breakout sessions.

The summit is sponsored by the United States Attorney’s Office, the Cleveland Clinic, the Cuyahoga County Executive, the Ohio Attorney General, MetroHealth Medical Center, University Hospitals, Cuyahoga County Common Pleas Court, the Cleveland Division of Police, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Ohio State Medical Board, the Ohio State Pharmacy Board, Cuyahoga County Board of Health, the Cuyahoga County Medical Examiner, the ADAMHS Board., the Westshore Enforcement Bureau and others.

A federal grand jury returned a 59-count indictment charging  a Youngstown fraudulently obtaining ownership of more than two dozen distressed properties in Mahoning County and resold them for about $1 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.

Ondrea Shabazz, 47, faces multiple counts of real estate fraud, identity fraud and mail fraud.

“This defendant is accused of taking advantage of blight and distress in Youngstown neighborhoods as a way to enrich himself,” Dettelbach said.

“This defendant willfully decided that greed beat out any sense of decency when he forged signatures to fraudulently obtain ownership of distressed, soon-to-be-demolished homes and sold them to his clients for a profit,” Anthony said.   

Counts 1 through 29 of the indictment charge that beginning in or about October 2011, through June 2013, Shabazz knowingly devised a scheme to defraud real estate owners and unsuspecting third parties in order to obtain money and property by means of false and fraudulent pretenses, representations, and promises.  The manner and means used to accomplish the objectives of the scheme included the following, according to the indictment:

a.         Shabazz and others known and unknown operated Real Estate Investment Connection, LLC, a company that fraudulently obtained and resold distressed properties in the Youngstown, Ohio, area.

b.         Shabazz identified distressed properties that were foreclosed and/or targeted for demolition.  After identifying these properties, Shabazz created fraudulent quit claim deeds that contained forged signatures of the real estate owners and, in some instances, the forged signature of a Notary Public.  The deeds purported to transfer the property to Ondrea Shabazz, Real Estate Investment Connection, LLC, or others associated with Shabazz.

c.         Shabazz and others working at his direction then filed the fraudulent quit claim deeds with the Recorder’s Office or the Auditor’s Office in Mahoning County.  Once the filing fee was paid and the deed was recorded, the recorded deed was mailed to Ondrea Shabazz, Real Estate Investment Connection, LLC, or others associated with Shabazz.

d.         After receiving the recorded deed in the mail, Shabazz resold the property to individuals and companies under the false pretense that the property was legally owned by Shabazz, Real Estate Investment Connection, LLC, or others associated with Shabazz.

e.         In other instances, Shabazz fraudulently acted as an intermediary who had the authority to broker real estate transactions between the real estate owners and an unsuspecting third party.  Shabazz prepared quit claim deeds with forged signatures of the property owners and/or of a notary public.  Shabazz then gave the deeds to the unsuspecting third party and instructed them to record the deeds with the Recorder’s Office or the Auditor’s Office in Mahoning County.  Once the filing fee was paid and the deed was recorded, the recorded deed was mailed to the unsuspecting third-party.

f.          As a result of this activity, Shabazz defrauded property owners and unsuspecting third parties out of money and property valued over $1 million.

g.         Shabazz, for the purpose of executing such scheme and artifice, placed and caused to be placed in any post office and any authorized depository for mail matter, any matter or thing, to-wit: 29 fraudulent quit claim deeds to be delivered by the United States Postal Service to Shabazz, Real Estate Investment Connection, LLC, or others associated with Shabazz.

Counts 30-59 of the indictment charge that from October 2011 through June 2013, Shabazz did knowingly possess and use, without lawful authority, a means of identification of another person during and in relation to mail fraud.

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 Federal Bureau of Investigation.  The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.

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

Two men from the Mahoning Valley were indicted on federal firearms charges, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

A federal grand jury  returned a one-count indictment charging Kenneth D. Key, age 28, of Warren, Ohio, with being a felon in possession of a firearm.

The indictment charges that on or about August 18, 2013, Key possessed a Ruger, model P95, 9mm pistol, serial number 316-53865, and ammunition, despite a previous conviction for  possession of firearms in furtherance of drug trafficking crime, United States District Court, Northern District of West Virginia Case No. 2:04CR22 on or about May 12, 2005.

In an unrelated case, a federal grand jury returned a one-count indictment charging Leroy Gore, age 40, of Campbell, Ohio, with being a felon in possession of a firearm.

The indictment charges that on or about October 12, 2013, Gore possessed a Glock, model 30, .45 caliber pistol, after he had been previously convicted of involuntary manslaughter and felonious assault in the Mahoning County, Ohio, Court of Common Pleas.

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

The investigations preceding the indictments were conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Campbell Police Department.  The cases are being prosecuted by Assistant United States Attorney David M. Toepfer.

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

A federal grand jury returned a one-count indictment charging Tyler J. Lilley, age 33, of Akron, Ohio, and Tyler J. Bell, age 31, of Louisville, Ohio, with conspiracy to distribute and possession with intent to distribute marijuana, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges that from at least as early as the Summer of 2012 to on or about June 26, 2013, Lilley conspired to distribute and to possess with the intent to distribute 100 kilograms or more of marijuana; and Bell conspired to distribute and to possess with intent to distribute 50 kilograms or more of marijuana.

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

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

A federal indictment was filed today charging Gregory Frazier, aka Gregory Fernandez, age 53, of New York, New York, with bank fraud and aggravated identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that the defendant executed and attempted to execute a scheme to defraud JP Morgan Chase Bank, and to obtain money owned by and under the custody of the bank by means of false and fraudulent pretenses, representations and promises, on October 23, 2013.  

Under this scheme, the defendant obtained counterfeit New York State drivers licenses containing his photograph, and the personal identifier information of three individuals who resided in New York State, according to the indictment.

On October 23, 2013, the defendant entered JP Morgan Chase Bank branches in Streetsboro, Twinsburg, Bedford Heights and Beachwood, Ohio, seeking to withdraw cash from accounts maintained by the three individuals whose personal identifying information had been stolen, according to the indictment.

The case is being prosecuted by Assistant United States Attorneys Robert W. Kern and Miranda Dugi following an investigation by the United States Secret Service, and the Beachwood and Streetsboro Police Departments.

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.

Three people were indicted on charges that they conspired to pass counterfeit money totalling more than $10,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Indicted are Barbara Hendricks, 20, of Wilmington, Delaware; Jaonta Scarlett, age 25, of Monticello, New York, and Harlin Mack, age 25, of Hempstead, New York. 

They are accused of traveling to stores in Northwest Ohio and Southeast Michigan in 2013 and purchasing items at large department stores, including WalMart, Meijer, Home Depot and Toys R Us, with counterfeit $100 bills. They would then return the items at different locations of the same store for genuine U.S. currencty, according to the indictment.

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

The investigating agency in this case is the United States Secret Service, Toledo, Ohio.  The case is being handled by Assistant United States Attorney Angelita Cruz Bridges.

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

An indictment was filed charging Joshua J. Burchett, 33, of Toledo, with receipt and distribution of child pornography and possession of child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

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

The investigating agency in this case is the Department of Homeland Security, Cleveland, Ohio.  The case is being handled by Assistant United States Attorney Alissa M. Sterling.

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

A federal grand jury sitting in Cleveland returned a one-count indictment charging Larico Wesley, aka Rico, age 33, of Canton, Ohio, with being a felon in possession of a firearm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Wesley was arrested on October 31, 2013 by members of the FBI Stark County Safe Street Task Force and Canton Police after an investigation conducted by Canton Police Department. 

On August 25, 2013, Canton Police responded to calls of shots fired in the 700 block of Fourth Street, SW. Upon arrival officers observed Wesley pacing near and around a black SUV in the parking lot.  Further investigation pertaining to Wesley’s physical location revealed a semi-automatic handgun on the bumper of the vehicle, according to the indictment.

If convicted, his 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 two-count indictment charging Marcus Cross, age 23, of Cleveland, with armed bank robbery and using a firearm during the commission of a felony, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Cross robbed a Huntington Bank in Richmond Heights, Ohio, stole approximately $2,306 from the bank, and discharged a firearm during the commission of the robbery. 

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

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

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

A grand jury returned a one-count indictment charging Daniel Leotto Johnson, 44, of Cleveland, with bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Johnson robbed U.S. Bank, 5695 Turney Road, Garfield Heights, Ohio, on October 15, 2013.

The case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould, following investigation by agents of the Federal Bureau of Investigation, and members of the Garfield Heights Police Department.

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

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

A federal grand jury sitting in Cleveland returned a four-count indictment charging Daniel Dillon, age 50, of Los Angeles, with making interstate threatening communications, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.  

The indictment alleges that Dillon sent threatening communications from California to Ohio.  The communications, by fax, e-mail and voicemail, contained threats to injure and kill four victims, including a Stark County judge, a Stark County public official, a court-appointed guardian and the guardian’s attorney.

The indictment resulted from an investigation conducted by the Federal Bureau of Investigation in Canton, Ohio and the case is being prosecuted by Assistant U.S. Attorney Nancy Kelley.

If convicted, his 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.

Craig A. Hulbert, 38, of Avon Lake, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges that from on or about May 20, 2011, through on or about March 29, 2013, Hulbert 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 October 15, 2013, Hulbert possessed two computers and an additional hard drive, all that contained child pornography.

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

This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan.  The case was investigated by the Department of Homeland Security, Homeland Security Investigations.

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

A 65-count superseding indictment was filed today charging the former director of the Cleveland and Dayton VA Medical Centers with a scheme to enrich himself and his conspirators by working as a consultant for, and taking money from, a design firm pursuing more than $1 billion in VA contracts and sharing confidential information about VA construction projects while still employed by the VA, law enforcement officials said.

William D. Montague, 61, of Brecksville, was previously charged with conspiracy to commit honest services mail fraud, bribery, money laundering, multiple counts of wire fraud, mail fraud, disclosing public contract information and other charges. The charges unsealed today include conspiracy to commit honest services fraud, Hobbs Act conspiracy, violating the Hobbs Act and additional counts of mail and wire fraud.

 “As a Veterans Affairs Medical Center Director, William Montague misled staff and misused his position to enrich himself and businesses pursuing contracts with the Veterans Administration,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The new charges against Montague reflect law enforcement’s continued dedication to root out corruption at any level.”

“VA directors who use their official position for personal enrichment will be held to account,” said Gavin McClaren, United States Department of Veterans Affairs – Office of Inspector General, Resident Agent in Charge, Cleveland. “Our nation’s veterans deserve public officials and contracts who serve veterans’ needs and not their own.”

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

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

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

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

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

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

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

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

According to the indictment, on or about April 5, 2011 at approximately 5:50 p.m., Montague sent Business 75’s principal an email from Montague=s sbcglobal.net email account, with a subject line AMajor Construction.@  The email body indicated, AAs promised.@  On or about June 21, 2011 at approximately 11:12 a.m., Business 75 Principal forwarded the email to Business 75 Employee 7, writing, AThis is confidential.  Please don=t distribute.  This document is not classified or secret, but it is not intended for public distribution.@  Business 75 Principal attached a file entitled, “Detail of Request.docs.”

On or about July 30, 2011, in response to an email Business 74 employee, BE76, sent on or about July 28, 2011 suggesting that Business 74 “put on hold [Montague’s] quarterly stipends,” Montague sent an email from his sbcglobal.net email account to Business 74 employee, BE76, with a carbon copy to Business 74 employee, BE75, with a subject “Re: VA contract update.”  Montague informed Business 74 “I have had dificulty [sic] figuring out what [Business 74] wants or needs.  I have just, for example, obtained the priority scored list of all scored projects for next fiscal year.  It is unpublished and unavailable elsewhere.  This is considered the motherlode [sic] by my other clients, all of whom pay more than $5000 a quarter.  These lists would be excellent examples of a project by project system.  This is every project in the entire VA in priority order by category.  I also have obtained all planned Major projects through 2022,” according to the indictment.

On or about September 12, 2011 at approximately 2:24 p.m., Business 75 Principal sent an email to Business 75 employees in response to a previous email sent by another Business 75 employee on September 6, 2011 at approximately 9:48 p.m., which announced Business 75=s selection as the architect and engineer for the VA West LA VAMC.  Business 75 Principal wrote:

AI=m reminded B as I approve Bill Montague’s invoiceBthat it was Bill Montague (our VA consultant) who alerted me to this project at West LA.  I think we may have won this with or without Bill=s early warning, but getting in early on a large VA pursuit is critical.  We currently are working four large FY13 VA project leads worth over $1B in aggregate based on information that Bill has provided.  I would not have been able to find out what was in the Administration=s FY13 budget until early February, when it is sent to Congress.  I think we are ahead of virtually all our competitors on these four.  Bill has arranged for a meeting with the medical center director at one of the four locations (Lexington).  Business 75 Employee 10 will attend this meeting.  The risk is that not all four of these leads may make it into the final version of the bill.  But so far, Bill=s info has proved accurate. . . . I would not have come up with this information on my own, regardless of how many hours I invested.  I just don=t have access to the VA staffers that control the money.  He has the relationships within Capital Asset Managements.  Our contacts are all within CFM.  So in my opinion, BILL=s contacts and experiences broadens [sic] our understanding of VA Processes and expands our relationships.@

On or about September 13, 2011 at approximately 3:46 p.m., in response to an email from Business 75 Employee 6 to Business 75 Principal and Business 75 Employee 5 asking whether Business 75 would expect to keep Montague=s $30,000 per year consulting contract in light of Business 75=s plan to pursue a marketing person to work with Business 75 Principal in the Federal market, Business 75 Principal replied, AYes, I may want both for a period of time.  But I do not see BILL=s contract as running on forever . . . Currently, BILL is the interim Medical Director of VA Dayton.  As such, he has extraordinary access right now to information.  When that position ends, his access and influence will begin to diminish,@ according to the indictment 

On or about September 14, 2011 at approximately 3:46 p.m., Business 75 Employee 5 replied to Business 75 Principal=s email, and included Business 75 Employee 11, AInteresting mathB At $30k per year for BILL, we would have to win [$]300,000 in VA fee[s] every year ($30k profit) for us to break even.  I think VA West LA is worth $20,000,000,@ according to the indictment.

Montague further engaged in self-dealing by double-billing the VA and his consulting clients for the same travel expenses. For example, the superseding indictment charges that on May 26, 2011, Montague travelled to Washington DC on official VA business. On June 17, 2011, he caused to be submitted a government expense report seeking reimbursement for $1,204 for hotels, hotel taxes, parking, per diems and other expenses. On June 12, 2011, Montague caused to be sent a $2,741 invoice to Business 75 for “consulting services” for work performed at “Wash/Cleve/Dayton.” The invoice included $211 for hotel and $30.60 for hotel taxes incurred on May 26, 2011, according to the indictment.

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

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

An 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 City of Cleveland employee was sentenced to six months in prison followed by six months of house arrest for attempting to extort bribes from three companies in connection with his employment as a contract compliance officer, 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.

Lejon C. Woods, age 29, of Cleveland, previously pleaded guilty to three counts of extortion under color of official right.

“Today’s sentence sends a message that there will be continuing consequences for those who seek use their public job as a way to enrich themselves,” Dettelbach said.

“Public corruption at any level is a breach of the public’s trust," Anthony said. "The FBI thanks the City of Cleveland, Division of Police - Intelligence Unit and the three area businesses that were solicited by Woods for their cooperation in bringing this matter to justice” 

Woods, while acting in his capacity as a contract compliance officer with the City of Cleveland, solicited bribes from representatives of three local businesses, one of which was a nonprofit business, in connection with fines which were going to be imposed for non-compliance of contract requirements, according to court records. 

The conduct took place from May 18, 2010, through August 5, 2010, according to the indictment.

When City of Cleveland funds are used to pay for any part of a construction or rehabilitation project, the company involved in the project is subject to City of Cleveland, Office of Contract Compliance regulations relating to the hiring of certain percentages of minority business enterprises, disadvantaged business enterprises and city resident workers, according to the indictment. 

Woods told representatives of the three companies that in exchange for a cash payment, he would alter records with the City of Cleveland to reflect compliance. Woods obtained or attempted to obtain cash payments of $2,800, $3,000 and $1,200 from the respective companies, according to the indictment. 

The indictment is a result of an investigation conducted by the Federal Bureau of Investigation with assistance from the Cleveland Division of Police, Intelligence Unit. This case is being prosecuted by Assistant United States Attorney Henry F. DeBaggis.

Former Cuyahoga County employee and Maple Heights school board member Santina “Sandy” Klimkowski was sentenced to four years in prison today for her role in the Cuyahoga County corruption scandal, federal law enforcement officials announced today.

Klimkowski, 61, of Maple Heights, previously pleaded guilty to after previously pleading Hobbs Act conspiracy, bribery, conspiracy to commit mail fraud, making false statements, tax charges and other crimes.

Klimkowski participated in a scheme with then-Cuyahoga County Auditor Frank Russo in which contracts for commercial appraisal work went to a company that paid bribes to Russo, a portion of which went to Klimkowski. She also got cash and home repairs in exchange for using her position on the school board to steer construction contracts to contractors who paid bribes to her, according to court documents.

She was also ordered to pay $270,302 in restitution. That money will go to Cuyahoga County ($154,000), Maple Heights City Schools ($83,414) and the Internal Revenue Service ($32,888).

“Klimkowski is yet another individual uncovered in a lengthy public corruption investigation that was portraying herself as a public servant through her employment while defrauding the citizens of our community,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI and its partners will continue to root out public corruption, bringing the individuals involved to justice, as demonstrated with more than 60 convictions in this investigation.”

More than 60 people – including two judges, the county auditor and a former county commissioner -- have been convicted in the federal investigation into corruption in Cuyahoga County. Cuyahoga County is the largest county in Ohio and includes Cleveland.

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

A Toledo man was sentenced to more than eight years in prison for an identity theft scheme in which he defrauded banks out of $62,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Jermain R. Stevenson, age 23, pleaded guilty earlier this year to wire fraud and aggravated identity theft.

He admitted to using the Internet to gain personal information from people, including their names, Social Security numbers and credit card numbers, which he then used to defraud banks that issued credit cards. He used the information he obtained to purchase approximately $62,000 in goods and services from 2010 through 2012, according to court documents.

During his sentencing hearing, evidence was presented that demonstrated that Stevenson continued to access computers from prison and directed others to illegally transfer money from Western Union, Liberty Reserve and other services in order to continue the fraudulent scheme.

The investigating agency in this case is the Federal Bureau of Investigation.  The case is being handled by Assistant United States Attorney Joseph R. Wilson.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury sitting in Cleveland, Ohio, returned a six-count indictment charging Charles S. Wilson, Jr., age 40, and Sandra R. Wilson, age 42, both of Salem, Ohio, with conspiracy; cultivation and distribution of marijuana; possession with the intent to distribute and distribution of marijuana; maintaining a residence for the purpose of distributing marijuana; conspiracy to launder money and money laundering.

The indictment charges that beginning at least as early as June 2013, and continuing through September 2013, the Wilsons conspired with each other and diverse others to manufacture (cultivate) and possess with intent to distribute marijuana.  As part of the conspiracy, the Wilsons cultivated more than 100 marijuana plants which they knowingly and intentionally possessed with the intent to distribute.  The indictment further charges that the Wilsons maintained a residence in Salem, Ohio, for the purpose of cultivating and distributing the marijuana.

The Wilsons are also charged with conspiracy to launder monetary instruments, and one count of engaging in a financial transaction using proceeds of marijuana trafficking.

If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including each of the defendant’s prior criminal record, if any, each of the defendant’s role in the offense 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.

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

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

Four people from Northeast Ohio were indicted for operating an identity-theft scheme which they used to defraud six states out of more than $361,000 in unemployment benefits, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Darnell Nash, age 29, of Cleveland Heights, Kennard Berts, age 20, of Cleveland Heights, Dwayne Buchannan, Jr., age 22, of Cleveland, and Justin Davis, age 26, of Cleveland Heights, are named in the 33-count indictment. The charges include conspiracy to commit mail and wire fraud, mail fraud, wire fraud, aggravated identity theft and money laundering.

“These defendants took advantage of people looking for help, then defrauded funds that were designed to assist those out of work and facing hard times,” Dettelbach said.

The indictment alleges that the defendants executed a “fictitious employer” scheme from about March 2012 to January 2013.

Nash, Berts, Buchanan and Davis prepared and distributed flyers in low-income areas that appeared to be from the “Full Circle Fund” which purportedly provided assistance vouchers for rent, food, furniture, clothing and cash to individuals.  Individuals distributing the flyers were instructed by Nash to distribute the flyers in downtown areas and avoid neighborhoods, according to the indictment.

The flyers directed people to call a toll-free number. Callers to the Full Circle Fund were required to provide their names, dates of birth and Social Security numbers, according to the indictment.

Nash and others then submitted false paperwork to states’ unemployment-insurance offices in which the defendants registered 10 companies that did not actually exist and reported non-existent earnings for fictitious employees, according to the indictment.

The defendants then submitted false claims for unemployment-insurance benefits of the purported employees in California, Ohio, North Carolina, Texas, Indiana and Kansas. In doing so, the defendants  used actual individuals’ personal identifying information that the defendants had obtained through misrepresentations, according to the indictment.

Unemployment insurance benefits cards for the fictitious employees were then mailed to at least five different addresses in Ohio. The debit cards were collected at maintained at Nash’s residence in Cleveland Heights. The defendants then used the debit cards at various ATMs to withdraw the money, according to the indictment.

Approximately $361,341 in fraudulent unemployment benefits were paid as a result of this scheme, according to the indictment.

Nash deposited more than $200,000 in cash into two personal bank accounts in 2012, representing proceeds from the scheme. He also purchased a 2008 Land Rover for $35,000 using money from the scheme, according to the indictment.

The case is being prosecuted by Assistant United States Attorneys, Robert W. Kern, M. Kendra Klump, and James Morford following an investigation by the Department of Labor’s Office of the Inspector General, the United States Secret Service, the United States Postal Inspector, and the Social Security Administration’s Office of Inspector General. Cleveland Heights Police Department also assisted the investigation.

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

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

A federal indictment was filed today charging Lester K. Benson and Cheryl L. Benson, both age 53, of Cleveland, with one count of embezzling government funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges the defendants with misrepresenting information to the Social Security Administration and thereby obtaining approximately $44,605.60 in disability benefits to which neither was entitled.

The indictment follows an investigation conducted by the Social Security Administration’s Office of the Inspector General, and the case is being prosecuted by Assistant United States Attorney M. Kendra Klump.

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

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

Criminal charges were filed against 32 people for their roles in a ring that sold heroin on the Northeast Side of Cleveland and in Euclid, law enforcement officials announced today.

The indictments and arrests were announced by Cuyahoga County Prosecutor Timothy McGinty, United States Attorney Steven M. Dettelbach, Cleveland Mayor Frank G. Jackson, Euclid Mayor Bill Cervenik, FBI Assistant Special Agent in Charge Todd Wickerham and Cleveland Police Chief Michael McGrath.

The following people are indicted in federal court: Derek A. Warner, 20, of Cleveland; Willie James Lavel Dunning, 29, of Cleveland and Nassor M. Williams, 28, of East Cleveland. All three men are charged with multiple counts of distribution of heroin. Warner and Dunning are also charged with being felons in possession of firearms.

The following people are indicted in Cuyahoga County Common Pleas Court: Timothy B. Bennett, 23, of Euclid; Frederick Brown, 30, of Euclid; Calvin Burks, 25, of Cleveland; Kevin Carswell, 26, of Cleveland; George D. Chambliss, 22, of Euclid; William George, Jr., 25, of Euclid; Cassius D. Foster, 28, of Cleveland; Monte Glenn, 29, of Cleveland; Curtis Harris IV, 21, of Euclid; Derek Dion Jackson, 19, of Euclid; Edward M. Jewell, Jr., 22, of Cleveland; Chas D. Johnson, 25, of Euclid; Davaunte M. Livest, 20, of Cleveland; Gino D. Martin, 25, of Cleveland; Brandon D. McBee, 23, of Cleveland; Sir Kimberly McGraw, 36, of Cleveland; Ramel K. McHaney, 28, of Cleveland; Montel Spencer, 28, of Cleveland; Luke O. Stewart, 20, of Cleveland; Mose D. Stewart, 25, of Warren; Maurice Thornton, 22, of Euclid; Louis R. Tinker, 30, of Cleveland; Michael D. Walker, 27, of Cleveland; Antonio Welch, 31, of Cleveland; Byron R. White, 31, of Cleveland; Ronald A. White, Jr., 24, of Shaker Heights; Maurice A. Wilson, 25, of Cleveland; Perez D. Worley, 22, of Cleveland and Julius L. Wright, 29, of East Cleveland.

Some of those indicted and still at large are affiliated with the Lakeshore Boyz street gang. Anyone with information about their whereabouts is encouraged to call the FBI at 216.522.1400.

According to law enforcement officials, the 29 defendants who were indicted on state charges belonged to a loosely aligned group of retail-level heroin and cocaine dealers who operated mostly on Cleveland’s far Northeast Side and in the city of Euclid.

The sales targeted in the state’s indictments took place between February and August of this year. Many of the sales took place within 1,000 feet of a school, an additional violation that elevates each offense one felony level and will add to the severity of any sentences.

In addition to the trafficking, defendant Brandon McBee, aka “Slim,” was indicted for felonious assault. On August 13, during an undercover heroin buy in Cleveland that was to culminate with McBee’s arrest, he attempted to flee and rammed his car into a police vehicle. McBee’s vehicle was badly damaged and he required EMS treatment.

“These are the retailers of death and destruction to neighborhoods and families,” McGinty said. “Everyone will be better off with them in prison.”

“The arrests of the 32 individuals is testament to our commitment to the residents of our communities to get drug dealers off of our streets.  Along with our law enforcement partners and the community we will continue to do our best to stop drug traffickers from selling their poison in our neighborhoods,” McGrath said.

“The heroin sales that have taken place throughout our communities will not be tolerated,” Cervenik said. “We have heard the calls from our residents who have asked us to get rid of the drug dealers. Today, I'm happy to say that they won't be on our streets; instead, they'll be spending time in our jails.”

“These arrests are a fine example of how the FBI and our law enforcement partners will aggressively pursue and bring to justice those individuals who place our community at risk,” Wickerham said.

“This case is a demonstration of law enforcement working together to improve neighborhoods in Northeast Ohio,” Dettelbach said.

The cases are the result of a yearlong investigation by the Northern Ohio Law Enforcement Task Force, which is jointly led by the FBI and Cleveland Division of Police and includes investigators from the FBI, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Immigration and Customs Enforcement, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Strongsville Police Department, Westlake Police Department and Shaker Heights Police Department.

The federal cases are being prosecuted by Assistant United States Attorneys Adam Hollinsgworth and Edward Feran, while the state cases are being prosecuted by Assistant Cuyahoga County Prosecutor Deb Naiman.

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

An Aurora man was sentenced to nearly five years in prison and ordered to pay more than $600,000 for defrauding his Beachwood-based employer and its investment clients, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Cleveland office of the Federal Bureau of Investigation, and Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office.

Andrew J. Franz, age 41, previously pleaded guilty to three counts of mail fraud, one count of securities fraud, one count of investment adviser fraud and five counts of income tax evasion.

“This defendant betrayed the trust of his employer and his clients,” Dettelbach said. “He lined his pockets with the money that people worked a lifetime to save.”                   

Anthony said: “Andrew Franz enriched himself with hundreds of thousands of ill-gotten dollars by creating and carrying out various fraudulent schemes. The FBI will continue to work with our law enforcement partners to bring to justice those that steal the hard-earned money of others.”

"Law abiding citizens expect the government to hold accountable those who use deceit and fraud to line their pockets with money, especially when that money represents stolen federal taxes and embezzled funds," Enstrom said. "As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm."

U.S. District Judge Christopher Boyko sentence Franz to 57 months in federal prison. He also ordered Franz to pay $357,068 in restitution to his victims and $245,352 in back taxes to the IRS.          

The first three counts of the information charge that Franz, through his employment and association with the Ruby Corporation (Ruby), a Beachwood investment company, defrauded Ruby and at least 10 of its clients by misappropriating customer funds for his own personal use and benefit. 

Franz submitted quarterly fee requests to mutual fund and annuity companies for payment of investment advisory fees for Ruby’s clients’ investment accounts.  Franz then caused these companies to issue checks by mail to Ruby, which checks Franz intercepted and deposited into bank accounts he maintained and controlled, and which funds he used for his own personal use and benefit, according to the information.

Franz submitted some fee requests that were for amounts not due and payable to Ruby, and some fee requests that were for amounts greater than were due and payable to Ruby.  Franz also caused mutual fund and annuity companies to send some of these fraudulently obtained fee payments through the mail to his own residence, according to the information.

On some occasions, Franz deposited the funds obtained by his fraudulent fee requests into the accounts of Ruby in an attempt to conceal his fraudulent activity.  Franz also contacted a mutual fund company by telephone and, misrepresenting himself as the owner of a trust, caused the mutual fund company to mail payments to Franz’s personal residence.  Franz then deposited these checks into bank accounts he maintained and controlled, according to the information.

The information specifically lists three checks, drawn on the accounts of various clients of Ruby, that the Integrity Life Insurance Company sent to Franz’s personal residence between July 20, 2010 and September 7, 2010 as payment for false and fraudulent fee requests that Franz submitted.

Count 4 charges Franz with securities fraud in using and employing manipulative and deceptive devices and contrivances in connection with the purchase and sale of securities by employing devices, schemes, and artifices to defraud, and by engaging in practices which operated as a fraud on investors.

Count 5 charges Franz with investment adviser Fraud in aiding and abetting an investment adviser, namely, Ruby Corporation, in employing a scheme to defraud a client or prospective client, and engaging in a practice which operated as a fraud and deceit upon a client, through the use of the mail and instrumentalities of interstate commerce.

Counts 6 through 8 charge that Franz committed income tax evasion for calendar years 2007, 2008, 2009 by filing false and fraudulent tax returns.  Counts 9 and 10 charge Franz with Income Tax Evasion for calendar years 2010 and 2011 by failing to make an income tax return as required by law, and by conducting his business affairs and personal expenditures in a manner designed to conceal his receipt and disposition of income and assets from the Internal Revenue Service.   The total amount of additional tax due and owing by Franz for the tax evasion charged in Counts 6 through 10 is $245,352, according to the information.

The case is being prosecuted by Assistant U.S. Attorney Christian H. Stickan and Trial Attorney Scott M. Watson, following investigation by agents of the FBI, Cleveland Office and IRS-Criminal Investigations, Cleveland Office, with assistance of the United States Securities and Exchange Commission, Chicago, Illinois.

Diebold Inc., the North Canton-based provider of integrated self-service delivery and security systems, including automated teller machines (ATMs), has agreed to pay a $25.2 million penalty to resolve allegations that it violated the Foreign Corrupt Practices Act (FCPA) by bribing government officials in China and Indonesia and falsifying records in Russia in order to obtain and retain contracts to provide ATMs to state-owned and private banks in those countries.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio made the announcement.

The department today filed in U.S. District Court for the Northern District of Ohio a criminal information and a deferred prosecution agreement.  The two-count information charges Diebold with conspiring to violate the FCPA’s anti-bribery and books and records provisions and violating the FCPA’s books and records provisions.

“In China, Indonesia and Russia, Diebold chose to pay bribes for business and falsify documents to cover its tracks,” said Acting Assistant Attorney General Raman.  “Through its corrupt business practices, Diebold undermined the sense of fair play that is critical for the rule of law to prevail.  Today’s action – which holds Diebold accountable for its criminal conduct, while also recognizing its cooperation and voluntary disclosure to the government of its conduct – underscores that fighting global corruption is and will remain a mainstay of the Criminal Division’s mission.”

“Companies that pay bribes to public officials, whether those officials are in Cleveland, in Ohio or overseas, violate the law,” said U.S. Attorney Dettelbach.  “Corporate earnings cannot be placed above the rule of law, and today’s penalties – nearly $50 million in all – send the message again, loud and clear, that such conduct is unacceptable.  We hope that Diebold will use this opportunity, including the internal controls and compliance monitor required by today’s agreement, to turn the page to a newer and more ethical corporate culture.”

According to court documents, Diebold paid bribes and falsified documents in connection with the sale of ATMs to bank customers in China, Indonesia, and Russia.  With respect to China and Indonesia, the court documents allege that from 2005 to 2010, in order to secure and retain business with bank customers, including state-owned and -controlled banks, Diebold repeatedly provided things of value, including payments, gifts, and non-business travel for employees of the banks, totaling approximately $1.75 million.  Diebold attempted to disguise the payments and benefits through various means, including by making payments through third parties designated by the banks and by inaccurately recording leisure trips for bank employees as “training.”  The court documents also allege that from 2005 to 2009, Diebold created and entered into false contracts with a distributor in Russia for services that the distributor was not performing.  The distributor, in turn, used the money that Diebold paid to it, in part, to pay bribes to employees of Diebold’s privately-owned bank customers in Russia in order to obtain and retain ATM-related contracts with those customers.

In addition to the monetary penalty, Diebold agreed to implement rigorous internal controls, cooperate fully with the department, and retain a compliance monitor for at least 18 months.  The department agreed to defer prosecution for three years and, if Diebold abides by the terms of the deferred prosecution agreement, the department will dismiss the criminal information when the agreement’s term expires. The agreement acknowledges Diebold’s voluntary disclosure and extensive internal investigation and cooperation. 

In a related matter, Diebold reached a settlement with the SEC and agreed to pay approximately $22.97 million in disgorgement and prejudgment interest.  The SEC settlement was filed today.

The case is being prosecuted by Trial Attorney Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Justin J. Roberts of the Northern District of Ohio.  The case was investigated by the FBI’s Cleveland Field Office.  The department acknowledges and expresses its appreciation for the assistance provided by the SEC’s Division of Enforcement.

Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

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 Rochelle Johnson, age 41, of Youngstown, Ohio, with assaulting, resisting, opposing, impeding and interfering with a Deputy U.S. Marshal while engaged in official duty.

The indictment charges that on or about October 2, 2013, Johnson assaulted a Deputy U.S. Marshal while he was engaged in official duty.

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

The investigation preceding the indictment was conducted by the United States Marshals Service and the Northern Ohio Violent Fugitive Task Force.  The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.

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

A criminal information was filed charging a Stow man with 10 counts related to a $744,000 scheme in which he ordered equipment at his company but then resold it for personal profit, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Thomas A. Steiger, age 45, faces six counts of wire fraud and four counts of interstate transportation of property obtained by fraud.  

Steiger worked as the facility manager of the truck repair and cleaning departments at Voith Industrial Services’ plant in Walton Hills. The company had a contract with Ford Motor Company to provide parts and repair services for industrial equipment at Ford’s stamping plant in Walton Hills, according to the information.

From January 2011 through January 2013, Steiger equipment that neither Voith nor Ford needed, including infrared cameras, oscilloscopes, particle counters, earth-ground testers and Fluke meters. He then resold it to third parties, primarily an individual in San Diego, according to the information.

Steiger caused Voith to pay for the equipment but had it delivered to himself personally. He then shipped the equipment via UPS and had the payments from third-party purchasers wired to his personal bank account, according to the information.

He also had Voith purchase and pay for items that Steiger ordered for his personal use, including a laptop computer, a chainsaw, rock salt, a snow thrower and other items, according to the information.

Overall, Steiger caused Voith to make purchases totaling $744,109 for equipment the company never received, was sold by Steiger for his personal profit or was kept for his personal use, according to the information.

If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. 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 Attorney James V. Moroney  following an investigation by the Federal Bureau of Investigation.

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

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced that a grand jury returned a one-count indictment charging Dominic A. Times, age 29, with assault on a federal officer.

The indictment alleges that Times assaulted a correctional officer at the Elkton, Ohio, Federal Correctional Institution on January, 13, 2013.

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

The case is being prosecuted by Assistant U.S. Attorney Lauren Bell, following an investigation by agents 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.

The former administrator of a group of International Brotherhood of Electrical Workers (IBEW) Local 38 employee benefit plans was charged in a one-count information with embezzling approximately $32,000 from the company that administered the plans, United States Attorney Steven M. Dettelbach said.

John Dietz, age 56, of Twinsburg, Ohio, was employed as Administrator of the IBEW Local 38 Fringe Benefit Funds, Inc. (the “Funds, Inc.”), located in Valley View, Ohio.  The Funds, Inc.  administers three benefit plans for members of IBEW Local 38: the IBEW Local 38 Health & Welfare Plan, the IBEW Local 38 401(k) Retirement Plan, and the IBEW Local 38 Pension Fund.  

The information alleges that from approximately February 21, 2009, through August 5, 2011, Dietz embezzled monies from the Funds, Inc. through various devices, including: (a) paying for personal expenses through charges to the Funds, Inc.’s two credit cards; (b) receiving expense reimbursement checks for personal expenses; and (c) issuing himself mileage reimbursement checks for personal automobile travel. 

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

The case is being handled by Assistant United States Attorney John M. Siegel following investigation by the Department of Labor’s Employee Benefits Security Administration and Office of Inspector General – Office of Investigations. 

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

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury sitting in Cleveland, Ohio, returned a two-count indictment charging Anthony Cunningham, age 56, of Salineville, Ohio, with maintaining a drug-involved premises and being a felon in possession of a firearm and ammunition.

Count 1 of the indictment charges that on or about June 2013, through July 2013, Cunningham maintained a place on State Route 39 in Salineville, Ohio, for the purpose of distributing heroin and cocaine.

Count 2 of the indictment charges that on or about August 2, 2013, Cunningham possessed an American Derringer, model 1, .40 Derringer and Federal .40 caliber ammunition, after he had been previously convicted of Bank Robbery in the U.S. District Court for the Northern District of Ohio, and of Felonious Assault with a Firearm Specification in the Stark County, Ohio, Court of Common Pleas.

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

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

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

A two-count criminal information was filed charging an Ohio man with discharging well drilling waste into Beecher Brook, a tributary of the Chagrin River, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

James L. Hidey, 45, of Dover, Ohio, in 2008 worked for Great Plains Exploration, an oil and gas well drilling company based in Northeast Ohio.  On two separate occasions in 2008, Hidey directed the discharge of brine into a stormwater sewer after the completion of gas wells in Mayfield Heights and Highland Heights.  The brine flowed from the stormwater sewers into Beecher Brook and eventually into the Chargrin River, according to the information.

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

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

“Dumping toxic substances like brine into sewers and rivers can be extremely harmful to the environment and a real threat to Ohio families,” said Ohio Attorney General Mike DeWine.  “We will continue to work with our task force partners to enforce environmental protection laws and hold violators accountable.”

“Our natural resources must be protected,” said Randall K. Ashe, Special Agent in Charge of U.S. EPA's criminal enforcement program in Ohio.  “We will continue to investigate and refer for prosecution anyone who commits crimes against the environment.”

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

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

A criminal information was filed charing a North Canton man with embezzling $219,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Joshua L. Haddad, age 29, is accused of embezzling approximately $219,900 from First Merit Corporation from April 2010 through September 2012. Haddad did this while he was employed as a teller at the bank’s Country Fair Branch, 4105 Tuscarawas Street West, in Canton, Ohio, which is a bank whose deposits were insured by the Federal Deposit Insurance Corporation, according to the information.    

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

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

This case is being prosecuted by Assistant U.S. Attorney Margaret A. Sweeney, following investigation by the Federal Bureau of Investigation.

The U.S. Department of Justice gave more than $6.8 million to fight crime in Northern Ohio this month, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Today, in conjunction with the U.S. Department of Justice Office of Community Oriented Policing Services (COPS), Dettelbach announced funding awards for the Northern District of Ohio, to be used to hire additional police officers and school resource officers.

The grantees, the additional officers to be hired and the grant amount, which includes salary and benefits for officers to three years, are as follows:

Akron, 10 officers, $1.25 million.

Austintown, 2 officers, $250,000.

Canton, 7 officers. $851,949.

Cleveland, 10 officers. $1.25 million.

Cuyahoga Metropolitan Housing Authority, 4 officers, $499,000.

Lima, 1 officer, $125,000.

Mansfield, 4 officers, $849,844.

Toledo, 10 officers, $1.25 million.

Warren, 2 officers, $250,000.

Additionally, the Northern Ohio Violent Crime Consortium was awarded $500,000, which will be used for data analysts and improved technology. NOVCC is made up of the eight largest departments in Northern Ohio – Akron, Canton, Cleveland, Elyria, Lorain, Mansfield, Toledo and Youngstown – and are engaged in intelligence-led policing efforts.

Earlier this month, the Department also awarded $1 million to fund crime prevention and enforcement efforts in the Mt. Pleasant neighborhood on Cleveland’s southeast side. The money will be used over three years to pay for crime prevention programs, training for felons returning for prison, as well as the continuation V-GRIP gun suppression initiative, in which federal agents work with Cleveland police to arrest people who illegally possess firearms.

“Today, the Justice Department is proud to support the brave and innovative men and women fighting and preventing crime in Northern Ohio,” Dettelbach said. “For people listening to those who would indiscriminately shrink or simply shut down the federal government, today’s grants, which support cops on the street and crucial crime prevention, is a reminder of the valuable role the federal government plays.”

“In the wake of past tragedies, it's clear that we need to be willing to take all possible steps to ensure that our kids are safe when they go to school,” said Attorney General Eric Holder. “These critical investments represent the Justice Department's latest effort to strengthen key law enforcement capabilities, and to provide communities with the resources they need to protect our young people. Especially in a time of increased challenges and limited budgets, our top priority must always be the safety and well-being of our children.”

Overall the COPS Office funded awards to 263 cities and counties, aimed at creating 937 law enforcement positions.  More than $125 million will be awarded nationally, including nearly $45 million to fund 356 new school resource officer positions.

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

Grantees for the 2013 hiring program were selected based on their fiscal needs, local crime rates, and their community policing plans.  There was an additional focus this year on agencies requesting assistance in developing school safety programs that would include the hiring of a school resource officer.  School resource officer positions funded by the COPS Office are sworn law enforcement positions that work within a school district or facility, interacting directly with school administrators and students.    

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

For the entire list of grantees and additional information about the 2013 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.

The managers of two Instant Tax Service offices in Toledo were indicted on several charges related to a $700,000 “payday loan” tax-refund scheme, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

“These defendants preyed upon clients who were in some cases desperate and in other cases not financially experienced,” Dettelbach said. “We will continue to work with the IRS to prosecute those who would abuse tax laws.”

IRS Criminal Investigation Special Agent in Charge Kathy A. Enstrom said: “Individuals who commit refund fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law.  Be assured that IRS Criminal Investigation, together with our partners at the U.S. Attorney's Office, will hold those who engage in similar behavior fully accountable."

Adonay Mehreteab, age 27, of Fort Wayne, Indiana and Miranda Parr, age 32, of Heath, Ohio, are charged with conspiracy, wire fraud and making false, fictitious, or fraudulent claims to the Internal Revenue Service for tax year 2011. Parr faces an additional charge of aggravated identity theft. 

Mehreteab owned and operated two Instant Tax Service franchise offices, one on Monroe Street and the other on Airport Highway. Mehreteab and Parr managed the offices, according to the indictment.
Mehreteab and Parr prepared and submitted tax returns claiming refund amounts in excess of what the taxpayers were entitled to. Mehreteab and Parr’s conspiracy resulted in at least 114 false, fictitious and fraudulent claims to be filed, causing a total refund of $700,974 and a loss to the government of $265,510, according to the indictment.

As part of the conspiracy, Corporate ITS advertised “$1,000 holiday loans” to potential clients at the end of 2011. While ITS advertised $1,000 loans, most were in the range of $50 to $100, according to the indictment.

Mehreteab required clients applying for an ITS loan to provide information including their name, Social Security number, address, paystub, names of dependants and their Social Security numbers. Mehreteab indicated the loan would be a partial advance on their estimated 2011 tax return, according to the indictment.

Mehreteab, Parr, and others both known and unknown to the Grand Jury, then used personal and employment information of the loan clients to file 2011 individual income tax returns of behalf of loan clients, sometimes without their knowledge or authorization, according to the indictment.

Sometimes Mehreteab and Parr prepared correct returns when the client was present but later added false items to the return, such as false wages or incorrect dependants, to increase the refund amount. They also added false credits and deductions without verification and, in some instances, without authorization, according to the indictment.

ITS also charged exorbitant fees, typically $500 to $1,000, which were deducted from the clients’ refunds without disclosing to the taxpayer clients the fee amount prior to the return being filed, according to the indictment.

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

The investigating agency in this case is the Internal Revenue Service Criminal Investigation, Toledo, Ohio.  The case is being handled by Assistant United States Attorney Joseph R. Wilson.

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

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced an information was filed against Keith A. Prather, age 25, of Toledo.  The charge relates to the failure to register as a sex offender under the Sexual Offender Registration and Notification Act.    

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

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

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

A Medina man was sentenced to 14 years in prison for crimes related to child pornography, law enforcement officials said today.

Richard J. Miezin, 48, was previously found guilty of receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, as well as making false statements and representations to the Federal Bureau of Investigation during their investigation.

Miezin knowingly distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct from April 27, 2010, through February 25, 2011, according to court documents.

“This sentence should send a message to those who would victimize children,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

“Victims of child pornography are repeatedly harmed when images of their abuse are distributed over the Internet,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “Individuals like Richard Miezin, who choose to engage in such despicable behavior, will be brought to justice.”

“Protecting our children from this type of exploitation is one of my highest priorities,” said Medina County Sheriff Tom Miller. “I remain committed to combating those who would seek to victimize the most innocent among us.”

This case is the result of was a joint effort of the Medina County Sheriff’s Office and the Akron Office of the FBI’s Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Carol M. Skutnik.

Targeting child predators is a priority of this newly established task force with the Medina County Sheriff and FBI. This task force will utilize all available investigative, technical and community resources to protect the children in our communities.

A federal indictment was unsealed today charging two executives at a North Canton company with conspiring to violate campaign finance laws, conspiring to obstruct justice and committing  other related crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office.

Benjamin Suarez, 72, of Canton, and Michael Giorgio, 61, of Cuyahoga Falls, are both named in the eight-count indictment. They are charged with one count of conspiracy to violate campaign finance laws, two counts of violation of campaign finance laws, two counts of making false statements, one count of conspiracy to obstruct justice and one count of obstruction of justice. Suarez also faces an additional count of witness tampering. The indictment is based on allegations that Suarez, Giorgio and others funneled almost $200,000 in conduit contributions to campaigns in the 2012 election.

“This office, working with the FBI, has always and will continue to ensure that all who participate in our political process follow the rules and obey the law,” Dettelbach said. He also praised the investigation of the FBI in the case.

“Benjamin Suarez and Michael Giorgio engaged in behavior that blatantly ignored and directly circumvented clearly established campaign financing laws,” Anthony said. “The FBI is committed to fully investigate any such intentional violations of these laws, which exist to help ensure fair, honest, and transparent elections.”
Suarez is the founder and owner of a company identified in the indictment as Company A. Giorgio was Company A’s chief financial officer.

According to the indictment, Suarez agreed to raise $100,000 for an Ohio candidate for the United States Senate and $100,000 for an Ohio candidate for the United States House. Suarez and Giorgio then recruited individuals who worked for or were otherwise associated with Company A to serve as conduit contributors; that is, to make contributions in their own names and those of their spouses, according to the indictment.

Giorgio, acting at Suarez’s direction, informed potential conduit contributors that the amount of their and their spouse’s contributions would be fully reimbursed by Company A, according to the indictment.

Suarez and Giorgio then directly and indirectly caused Company A to reimburse the conduit contributors, disguising the payments first as salary and then as profit sharing. Suarez and Giorgio caused the payments, including those of spouses, to be “grossed up” to cover payroll and other taxes, so the full amount of the contribution would be reimbursed, according to the indictment.

Suarez and Giorgio disguised and concealed the amount and source of the campaign contributions and identity of Company A as a contributor so that the public would be less likely to know the nature and extent of the support Company A and Suarez were providing the 2012 House campaign and 2012 Senate campaign, according to the indictment.

The indictment details 18 contributions, all made in March 2011, to a 2012 House campaign. It also details 20 contributions, all but one made in May 2011, to a 2012 Senate campaign.

Suarez and Giorgio are also accused of conspiring to obstruct justice from March 2011through this month. They allegedly did this by failing to turn over documents, records and evidence subject to federal Grand Jury subpoenas. They also caused Company A’s controller to create and distribute documents  entitled “Advance on Profit Sharing” for all but one Company A employee or contractor who has been reimbursed for campaign contributions. Those documents were intended to create false the impression that the reimbursement payments that Company A previously made to the conduit contributors were actually “advances” that all along were meant to be repaid to Company A by the employees and contractors. They did this after newspaper reports detailed the suspicious contribution, according to the indictment.

According to the indictment, Suarez also sought to influence, delay and prevent witness testimony before a federal Grand Jury.

This case is the result of an investigation by the Federal Bureau of Investigation – Canton Field Office. It is being prosecuted by Assistant United States Attorneys Carole S. Rendon and Rebecca Lutzko.

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

The investigation is ongoing.

An indictment was filed charging Marcellus C. Lee, age 33, and Gregory A. Collins, aka “D.D.”, age 36, both of Chicago, with one count of conspiracy to distribute a kilogram of heroin and with one count of possession with intent to distribute heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment results from an investigation conducted by the Northern Ohio Law Enforcement Task Force (NOLETF), in Cleveland, Ohio. The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Immigration and Customs Enforcement, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Strongsville Police Department, Westlake Police Department and Shaker Heights Police Department. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives. The HIDTA Program supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug-trafficking in Ohio. The case is being prosecuted by Assistant United States Attorney Christian H. Stickan.

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.

Two Brook Park men pleaded guilty today to defrauding the Supplemental Nutrition Assistance Program (formerly the Food Stamp Program) out $2 million from four Cleveland stores where they accepted food stamps for ineligible items such as beer and cigarettes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Saed (Sam) Wahdan, 41, and his brother, Maher (Mario) Wahdan, 42, each pleaded guilty one count of conspiracy to commit food stamp fraud, one count of food stamp fraud and two counts of unlawful redemption of food stamps. Maher Wahdan also pleaded guilty to an additional count of theft of public funds.

“The food stamp program has provided nutritious food to thousands of hungry families over the years,” Dettelbach said. “We will continue to work to recover money stolen from the program and eradicate waste, fraud and abuse of government programs.”

The Wahdans are scheduled to be sentenced on April 24, 2014.

Nidal Jaber, 45, also of Brook Park, was also indicted for his role in the conspiracy. His charges are pending.

Between January 2008 and March 2012, the Wahdans and others conspired to commit more than $2 million in food-stamp fraud through four of their businesses:  One Stop Beverage, 5105 Franklin Blvd.; Bridge Deli and Beverage, 4700 Bridge Ave.; Franklin Beverage and Deli, 4719 Franklin Blvd., and Scott Food Mart, 951 Linn Drive. 

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

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

The indictment seeks to forfeit property derived from the proceeds of the criminal conduct of the Wahdans, including the following Cleveland properties: 9604 Dennison Ave.; 3353 West 44th Street; 3374 West 130th Street; 1452 West 75th Street and 951 Linn Drive.

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

A Lorain man was sentenced to more than six years in prison after previously pleading guilty to being a felon in possession of firearms, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Jose Romero, age 32, was found to have 40 pistols, rifles and revolvers earlier this year despite having a 2005 conviction in Lorain County for domestic violence, according to court documents.

“This office places a high priority on keeping firearms out of the hands of those who are forbidden by law from obtaining them,” Dettelbach said. “Whether it is a person using a gun to commit a violent crime, a felon illegally obtaining a firearm or a straw purchaser trying to circumvent the law, we will aggressively pursue those who would violate our nation’s firearms laws.”

U.S. District Judge James Gwin sentenced Romero to 80 months in prison on Sept. 20.

Romero told a confidential informant that he was interested in purchasing large numbers of firearms in an effort to influence their availability in Lorain, according to court documents.

The information indicated that Romero stores many of his firearms inside a safe inside his grandmother’s residence on Charleston Avenue in Lorain. Law enforcement officers subsequently searched Romero’s home on East 31st Street and the Charleston Avenue home on Feb. 26, 2013, according to court documents.

Investigators found firearms, marijuana and cocaine at the East 31st Street residence and a safe with 28 firearms at the Charleston Avenue residence, as well as marijuana, according to the court documents.

This case is being handled by Assistant United States Attorney Robert F. Corts following an investigation by the Lorain Police Department, the Drug Enforcement Administration, Lorain County Drug Task Force and Bureau of Alcohol, Tobacco, Firearms and Explosives.

An Avon Lake woman pleaded guilty today to human trafficking and drug trafficking crimes after forcing four women, including two teens, to have sex for money, law enforcement officials said.

Ashley Onysko, 23, pleaded guilty to conspiracy to engage in sex trafficking and drug trafficking. She is scheduled to be sentenced Jan. 14, 2014

“This woman helped force teens to have sex for money,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “These activities happen all around us and it’s the responsibility of the community and law enforcement to work together to end these crimes.”

“The defendants in this case used narcotics to gain control over their victims and forced them to engage in sex acts while lining their own pockets with money,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “The FBI and our law enforcement partners will utilize all necessary resources to bring to justice those that victimize our youth.” 

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

Onysko’s co-defendant, Jeremy Mack, 37, of Elyria, is awaiting trial.

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

They did this, in part, by posting photographs the victims on backpage.com on a user account that Mack and Onysko created on Dec. 25, 2012, according to the indictment.

At various times, Mack told and caused others to tell the victims that they needed to engage in commercial sex acts to repay the drug debts. The victims did, after which she turned over all proceeds to Mack and/or Onysko, according to the indictment.

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

The United States Department of Justice awarded the City of Cleveland a $1 million grant aimed at improving the Mount Pleasant neighborhood by expanding crime prevention programs, continuing targeted enforcement efforts and increasing programs for people returning to the neighborhood from prison, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The city was informed this week that it is a recipient of a $1 million Byrne Criminal Justice Innovation Program. The money will be disbursed over three years. Cleveland is one of only five cities to receive a full $1 million grant.

“This grant recognizes that improving public safety is about the people living in our neighborhoods and is a result of our longstanding, comprehensive approach and strong partnerships. It will support Cleveland Police and our law enforcement partners as they target violent crime, but it will also support a wrap-around approach for residents so that they have opportunities to choose a better life,” said Cleveland Mayor Frank G. Jackson. “I want to thank the Department of Justice for the grant and their continued partnership.”

“This money will allow us to expand a decade-long partnership between law enforcement, community leaders and social-service providers,” Dettelbach said. “These programs allow us to work together to prevent crime and to help those returning home from prison, instead of simply trying to arrest our way out of the crime problem.”

“Community engagement is a crucial part of the solution,” said Michael L. Walker, executive director of the Partnership for a Safer Cleveland. “Making arrests in and of itself will not prevent violent crime. We’re trying to work with community organizations to develop solutions the community can take ownership of.”

The grant will target the Mount Pleasant neighborhood on Cleveland’s southeast side, running along Kinsman Avenue between Lee Road and East 93rd Street.

Among the programs earmarked for funding through the grant:

* The continuation of the VGRIP gun suppression efforts, in which Cleveland police and federal agents work together to crack down on gun violence, often leading to federal prosecution of felons illegally in possession of firearms.

* The expansion of Stand Together Against Neighborhood Crime Everyday (STANCE), which will work with Mount Pleasant residents and community stakeholders to design and implement comprehensive prevention and reentry efforts, such as Operation Night Light (police and community leaders make surprise visits to parolees, training for those returning from prison) and Operation Focus (counseling, assessments, call-ins, coaching  and service delivery).

* A Fugitive Safe Surrender in 2014, in which law enforcement and clergy work together to establish a safe location for non-violent fugitives wanted for low-level felonies to turn themselves in.

* Creating a comprehensive approach to restoring order to crime hot spots in the neighborhood, including improved street lighting, dispersing loiterers, performing code inspections, cleaning up vacant lots and razing abandoned buildings. This component also includes continuing to train police officers to connect youth who witness violence to mental health services within 48 hours.

* Case Western Reserve University’s Begun Center for Violence Prevention will collect, analyze and evaluate data to ensure that activities are supported by evidence of need and to track results. Data will be gathered by Cleveland police, Cleveland Schools, the Office of Building and Housing, Juvenile Court, adult and juvenile parole and other partner agencies.

The grant is the result of a partnership between more than 30 agencies, including the City of Cleveland, the Cleveland Municipal School District, the Cuyahoga Metropolitan Housing Authority, Partnership for Safer Cleveland, Sisters of Charity Health System, Third Federal Foundation, Mt. Pleasant NOW, St. Luke’s Foundation, Mt. Pleasant Community Zone, Cleveland Police, Cleveland Community Relations Board, the U.S. Attorney’s Office, the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshal, Greater Cleveland RTA, Cuyahoga County Prosecutor’s Office, Cuyahoga County Sheriff’s Office, Cuyahoga County Department of Justice Affairs, Cuyahoga County Juvenile Court, Ohio Department of Rehabilitation and Correction, Ohio Department of Youth Services, National Council of Jewish Women, College Now Greater Cleveland, Adcom Communications, Community Assessment and Treatment Services, Ohio Adult Parole Authority, and many others.

A former paid cooperator for a federal law enforcement agency was sentenced to more than four years in prison today for a variety of crimes related to a mortgage-fraud scheme, 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.

Paul R. Tomko, age 40, of Cleveland, pleaded guilty in March to one count of conspiracy to commit wire fraud and wire fraud, two counts of wire fraud, one count of student loan fraud and one count of concealment.

U.S. District Judge Christopher Boyko sentenced Tomko to 52 months in prison and ordered him to pay $327,044 in restitution.

“Paul Tomko has been sentenced, yet again, for being a fraudster to the tune of hundreds of thousands of dollars,” Anthony said. “The FBI hopes he has finally learned his lesson.”

Tomko pleaded guilty in 2009 to charges related to a mortgage fraud scheme and was sentenced to three years probation in the United States District Court for the Northern District of Ohio, in Case No.1:09CR29, according to court documents.

In 2007, Tomko had signed a paid cooperation agreement with a federal law enforcement agency wherein Tomko was to take full responsibility and make full disclosure of his own mortgage fraud-related violations and assist that agency in other mortgage fraud investigations. Tomko was paid approximately $19,500 in 2007 and $7,500 in 2008 by that agency under their agreement. Tomko concealed this income from the Probation Department and also falsely stated that the law enforcement agency had approved Tomko operating a mortgage business (The Mortgage House) from his residence, according to court documents.

Tomko, through his company, OKMOT (“Tomko” backwards) Real Estate Company, recruited his housekeeper to apply for fraudulent mortgage loans for four properties between 2006 through 2007. Tomko falsely inflated the income and assets of his housekeeper in order for her to qualify for these loans, according to court documents.

Once the loans closed, Tomko fraudulently received approximately $100,000 of the proceeds by filing mechanics liens for work not performed and directing funds to himself and/or companies he owned and controlled, as well as to others not charged in this conspiracy, according to court documents.

Tomko concealed income he received as a cooperator from a federal law enforcement agency, in order to fraudulently obtain student aid and grants from the United States Department of Education, according to court documents.

The case is being prosecuted by Assistant U.S. Attorneys Christian H. Stickan and Christos M. Georgalis, following investigation by agents of the FBI, Cleveland Office and The Office of the Inspector General for the United States Department of Education.

Sixty people were indicted in federal court for their roles in a conspiracy to bring heroin from Chicago and Atlanta and sell it throughout Greater Cleveland, law enforcement officials announced today.

An additional 32 people were indicted in Cuyahoga County Common Pleas Court on related state charges.
The indictments were announced today by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Timothy McGinty, Cuyahoga County Prosecutor, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office and Cleveland Police Chief Michael McGrath.

The 203-count federal indictment describes a conspiracy took place from at least September 2011 through this month.

Keith Ricks, Brandy M. Bates and Dammarkro S. Nolan obtained heroin from suppliers in Atlanta and transported the drugs to Cleveland by mail or car. Ricks, Maurice Golston, Dionte Thompson and Leamon Shephard also pooled their money to obtain heroin from Atlanta, according to the indictment.

Ricks then distributed the heroin to other traffickers in Cleveland, including Shephard, Golston, Marcus Blue, Maceo Moore, Gregory Hamilton and Robert Belk, according to the indictment.

Shephard also took the heroin he obtained from Ricks and other suppliers and distributed to other dealers. Moore also obtained the heroin and distributed it to other dealers, including Jamez Jamel Webb II, Rolando J. Reed and Terrance Fletcher, according to the indictment.

Ricks, Moore, Shephard, Blue, Golston, Nolan and others also planned and committed burglaries and robberies from other drug dealers, customers and each other. This was done to fund their drug trafficking, to obtain heroin and other drugs and to collect drug debts, according to the indictment.

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

The conspirators conducted counter-surveillance on law enforcement, including posting sentries to serve as lookouts. They also shared information about drug traffickers who had been arrested and obtained court documents regarding the details of traffickers’ court dates as a way to warn co-conspirators not to do business with other traffickers who had been arrested, according to the indictment.

Jovan Fussell and others also obtained large quantities of heroin from suppliers in Chicago and transported the drugs to Cleveland, where it was distributed to heroin dealers including Kenneth E. Harris, Gregory Hamilton, David E. McCall, Jr. Pierre A. Campbell and others.

Harris then redistributed the heroin to other individuals, including Frederick L. Darling, Gregory T. Savage, Jr., Terrance L. Fletcher and other dealers. Darling then supplied heroin to several other people for redistribution, including Eugene Miller, Thomas C. McCully and others.

“These defendants used firearms and violence to fund an operation that brought heroin, and the death it causes, from across the country into Greater Cleveland,” Dettelbach said. “Far from some of these defendants’ glamorous view of themselves, the suffering they caused unmasks them for what they are – greedy heroin dealers who cared about little besides money.”

Anthony said: “These individuals represent the worst of the worst, putting everyday citizens in danger by engaging in countless violent acts while lining their pockets with ill-gotten drug money.  This wide-ranging investigation is another example of the comprehensive strategy by local, state and federal law enforcement to target, dismantle and eliminate the most significant criminal enterprises in our region.” 

“Cuyahoga County is on track this year to set record-breaking numbers for heroin deaths,” McGrath said. “Lives will be saves as a result of the hard work by the Northeast Ohio Law Enforcement Task Force. These arrests are a testament to the great results achieved when law enforcement agencies work together for the common goal of making our streets safe and drug free. Through our cooperative partnership we will continue to seek out those groups and individuals that push poison into our neighborhoods.”

McGinty said: “Let today's raids and indictments-- and the trials and convictions to come -- be a message to those who want to capitalize on addiction: There’s a prison cell already built, the floor is painted, the stainless steel toilet is installed – and it’s waiting for you.”

Those facing federal charges are as follows: Carl Akins, 37, of Cleveland; Darnell Alexander, 29, of Brooklyn; Brandy Bates, 30, of Cleveland Heights; Beneditto Belfiore, 23, of South Euclid; Robert Belk, 27, of Cleveland; Stevenson Black, 47, of Cleveland; Dominique Blair, 28, of Euclid; Latrice Blevins, 39, of Cleveland; Marcus Blue, 30, of Euclid; Michael Buchanan, 48, of Cleveland; Pierre Campbell, 29, of Cleveland; Frederick Darling, 57, of Cleveland; Jacob Derrickson, 25, of Euclid; Leamon Eddie, 46, of Cleveland; Dana Ervin; 51, of Cleveland; Corey Etheridge, 22, of Shaker Heights; Antwon Evans, 30, of University Heights; Frederick Ferrell, 61, of Cleveland Heights; Terrance Fletcher, 40, of Cleveland; Robert Lee Fowlkes, 31, of Cleveland; Jovan Fussell, 33, of Euclid; Maurice Golston, 32, of Cleveland; Jermaine Grayson, 25, of Cleveland; Lachelle Hall, 30, of Euclid; Gregory Hamilton, 37, of Cleveland; Kenneth Harris, 45, of Cleveland; Ryland Harris, 53, of Cleveland; David Harsley, 32, of Cleveland; Erian Harwell, 24, of Cleveland; Carlton Higdon, 44, of Cleveland; Dominique Ivory, 25, of Euclid; Douglas Johnson, 58, of Cleveland; Luther Johnson, 55, of Cleveland; Michael Jones, 50, of Cleveland; Andrew Lovings, 59, of Cleveland; Devonta Maxwell, 30, of Euclid; Dave McCall, 37, of Cleveland; Thomas McCully, 53, of Cleveland; Lamar Middleton, 25, of Cleveland; Eugene Miller, 51, of Cleveland; Sandra Miller, 33, of Painesville; Maceo Moore, 37, of Euclid; Vince Morgan, 22, of North Olmsted; Ed Nix, 48, of Euclid; Dammarkro Nolan, 39, of Painesville; Brenda Norman, 58, of Cleveland; Vernon Norman, 77, of Euclid; Antwone Nowden, 31, of Cleveland; Ivan Percy, 38, of Cleveland; Eric Powell, 38, of Cleveland; Rolando Reed, 23, of Cleveland; Keith Ricks, 31, of Cleveland; Gregory Savage, 53, of Cleveland; Kevin Scott, 47, of Cleveland; Leamon Shephard, 25, of Cleveland; Dionte Thompson, 25, of Cleveland; Jamez Webb, 21, of Cleveland; Jamal Williams, 34, of Cleveland;  Shaun Williams, 30, of Cleveland, and Raymundo Wren, 31, of Cleveland.

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

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

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

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 Youngstown man was indicted today on charges of possession with intent to distribute heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

On Aug. 17, 2013, Santos R. Rivera, age 47, possessed more than 100 grams of heroin, which amount is indicative of heroin trafficking, 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 violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.

The investigation preceding the indictment was conducted by the Drug Enforcement Administration and the Ohio Highway State Patrol. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.

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

A Cleveland woman was sentenced to 16 months in prison for the theft of more than $41,000 in government benefits, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

India N. Parker, 37, will serve her federal sentence after serving a sentence in state prison related to offenses against a human corpse, tampering with evidence and criminal mischief.

Parker pleaded guilty earlier this year in U.S. District Court to two counts of theft of government property and five counts of making false statements.

Parker’s five-year-old daughter died in late 2006. Parker left the child’s remains to decay before putting the body in a trash bag and then in a garbage can in her front yard. A garbage truck then picked up and disposed of the child’s body. The body was never found, according to court documents.

After the child’s death, Parker lied about her daughter’s whereabouts to friends, family and investigators. While she disposed of the body, Parker stole and converted to her own use $40,236 in Social Security payments made to her daughter and $1,393 in food stamp benefits, according to court documents.

She also made false statements to agency representatives by stating that her daughter had been living with her when, in fact, Parker knew that her daughter was deceased during the relevant time frames, according to court documents.

The case was prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the Social Security Administration Office of Inspector General.

Two Akron men were indicted on charges of possession with intent to distribute more than two kilograms of methamphetamine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Robert E. Long, age 34, and Demarcus Golden, age 23, were also indicted on charges of use of the mail in interstate commerce to transport the drugs from Washington to Ohio via the United States Postal Service.

The defendants, while in another state, mailed an Express Mail box to themselves to an address in the Akron, Ohio area which contained approximately 10,196 pills of methamphetamine. 

The indictment resulted from an investigation conducted by the United States Postal Inspectors from Cleveland and Tacoma, Washington, the Department of Homeland Security, the Cleveland Police Department and Akron Police Department.  The case is being prosecuted by Assistant United States Attorney Teresa Dirksen.

If convicted, their sentence will be determined by the Court after review of factors unique to this case, including prior criminal records, if any, their 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 men were indicted for their roles in a conspiracy to distribute nearly 3,000 pills of Oxycodone, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Indicted are: Myron D. Black, age 44, of Mansfield, Ohio; Chauncey L. Ransom, age 49, of Inglewood, California, and Victor A. Hageman, age 45, of Euclid, Ohio.

“Prescription pill abuse is a major problem in Ohio,” Dettelbach said. “Whether it is a doctor selling prescriptions or people using the mail to ship pills across the country, we are committed to stopping the flow of illegal drugs.”

Ransom obtained a total of 2,989 pills (30 mg each) of Oxycodone, a Schedule II controlled substance, in California and mailed them to Black, Hageman and other in Ohio via the United States Postal Service Express Mail, according to the indictment.

Ransom often packaged the pills in video movie disc covers, plastic bubble mailing envelopes and other packaging to conceal the contents, according to the indictment.

Black and Hageman made arrangements with other individuals to receive the package from Ransom in return for money, usually $200, according to the indictment.

The conspiracy took place between at least August 2012 through April 2013, with Ransom mailing packages to addresses in Lakewood, Seven Hills, Akron and Mansfield containing shipments of between 200 and 600 pills, according to the indictment.

The indictment results from an investigation conducted by the United States Postal Inspection Service, in Cleveland, with the assistance of Metro-Richland County (Ohio) Enforcement Unit, and the Akron, Police Department, as well as the United States Postal Inspection Service, in Los Angeles, and the Los Angeles Police Department. The case is being prosecuted by Assistant United States Attorney Christian H. Stickan.

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

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

A one-count criminal information was filed charging a Salem, Ohio, pharmacist with health care fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Bruce E. Franken, 52, was excluded in 2003 from participating in all federal health care programs, including Medicare and Medicaid, for a minimum of 10 years as a result of his felony conviction, according to the information.

“This defendant was specifically barred from billing programs such as Medicaid because of his criminal past,” Dettelbach said. “Our office will continue to stamp out waste, fraud and abuse of all federal programs, particularly those that affect our health care system.”

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

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

If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, 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 U.S. Attorney Chelsea Rice and Special Assistant U.S. Attorney Constance Nearhood following an investigation by the U.S. Department of Health and Human Services, Office of Inspector General.

An information 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.