Northern District of Ohio

An indictment was filed chagring James Rynn, age 33, of Rossford, Ohio, with receiving, distributing, and possessing child pornography between  February and April 2012, 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 Federal Bureau of Investigation, Toledo, Ohio.  The case is being handled by Assistant United States Attorney Gene Crawford.

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 Brent North, age 47, of Rossford, Ohio, with with creating false federal law enforcement credentials and impersonating a federal law enforcement agent, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

On Jan. 14, 2011, North produced a false credentials identifying himsealf as a Special Agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives, according to the indictment.

On Dec. 8, 2012, North falsely stated he was a Special Agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives on consequently received favorable lease terms on a residential property in Oregon, Ohio, according to the indictment.

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

The investigating agency in this case is the Bureau of Alcohol, Tobacco, Firearms and Explosives, Toledo, Ohio.  The case is being handled by Assistant United States Attorney Gene Crawford.

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.

The Justice Department this week distributed more than $3.4 million to local and state law enforcement agencies under its equitable sharing program, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

“This money will provide badly needed resources to police departments throughout Northeast Ohio. Departments and agencies in Cuyahoga, Summit, Stark and Lake County will all get money, in some cases hundreds of thousands of dollars,” Dettelbach said. “The community gets a double benefit when we take ill-gotten money from criminals and drug dealers and use it to support local police and law enforcement.”

The money came from seizures and forfeitures in three federal cases –a heroin trafficking organization led by Christopher Ugochukwu, the money laundering conviction of Paul Monea and a 2010 traffic stop in Twinsburg that resulted in a seizure of $677,660.

Under the equitable sharing formula, the Justice Department keeps 20 percent of the seized assets. The remaining money is divided among other participating agencies based on hours worked on the case. The U.S. Marshal administers the funds.

More than $2 million came from the Ugochukwu case. Most of that came from cash that was forfeited. Additionally, property was seized in Solon, Cleveland, Cleveland Heights and Shaker Heights. Twelve vehicles were also seized.

Ugochukwu is currently serving a 26-year prison sentence for leading an organization that brought heroin from Nigeria, Mexico and Colombia and sold it throughout Greater Cleveland. Authorities seized more than 20 kilograms of heroin in 2010, believed to be the largest heroin seizure in Ohio history. Twenty-three people were convicted of crimes for their roles in the operation.

The Northern Ohio Law Enforcement Task Force, which led the Ugochukwu investigation, received more than $1.7 million. The NOLETF is jointly led by the FBI and Cleveland police and focused on large-scale drug trafficking investigations.

That $1.7 million will be divided among the cities and agencies whose departments participated in the Ugochukwu investigation, including Cleveland, the Greater Cleveland Regional Transit Authority, Cleveland Heights, Euclid, Shaker Heights, the Cuyahoga County Sheriff’s Office, the Cleveland Metropolitan Housing Authority, University Heights and the Lake County Narcotics Agency.

The FBI and Cleveland, University Heights and Parma police departments will also receive forfeited vehicles.

More than $1.7 million came from the conviction of Paul Monea, who was sentenced to 13 years in prison for conspiracy and money laundering. Monea tried to sell the 43-carat “Golden Eye” diamond to an undercover FBI agent posing as a broker for a South American drug cartel.

The diamond was seized and auctioned following Monea’s conviction, as was $100,000.

More than $1.2 million from the Monea case will go to local and state police. The distribution of assets is as follows: the Canton Police Department, $749,525; the Alliance Police Department, $282,429; the Ohio Adult Parole Authority, $46,460; the Stark County Sheriff’s Office, $37,092; the Internal Revenue Service, $36,643; the Shaker Heights Police Department, $36,643; the Ohio National Counterdrug Task Force, $19,496; the Jackson Township Police Department, $12,289; the Massillon Police Department, $8,990, and the Perry Township Police Department, $3,853.

Finally, Khalilah Crumpler had an outstanding warrant in Mayfield Heights when she was pulled over on a traffic stop in Twinsburg in 2010. She was taken into custody and a search of her car revealed $677,660 – some of which was wrapped in dryer sheets, which is often used to mask the smell of drugs. A drug detection dog then alerted positively for the odor or illegal narcotics. That currency was forfeited because it constituted proceeds from drug trafficking activities and/or was used or intended to be used to facilitate drug trafficking.

Of that money, $432,947 went to the Twinsburg Police Department and $54,880 to the Summit County Prosecutor’s Office.

A former employee of the Cuyahoga Heights School District was sentenced to more than 11 years in prison for the theft of more than $3.4 million from the district, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Joseph M. Palazzo, age 31, of Independence, Ohio, previously pleaded guilty to conspiracy to commit mail fraud, conspiracy to commit money laundering, and wire fraud.

U.S. District Judge Benita Pearson sentenced Palazzo to 136 months in prison and  ordered him to pay $3.4 million in restitution.

“This defendant stole millions of dollars that were intended to educate school children,” Dettelbach said. “There is simply no room for this type of corruption in our community.”

“This investigation uncovered a multi-million dollar embezzlement scheme laced with a web of financial lies that left a local school district in financial peril,” said Kathy Enstrom, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

“Joseph Palazzo violated the trust that the citizens and students of Cuyahoga Heights had placed in him by funding his personal account with millions of their tax dollars,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The investigators are to be commended for uncovering this enormous fraud.”

Palazzo was employed by the Cuyahoga Heights School District as its Information Technology Director until February 2011.  Palazzo was responsible for managing the district’s IT Department, which included purchasing hardware and software and making other IT expenditures to benefit the district and its students, according to court documents. 

Palazzo devised a scheme to divert millions of dollars of district funds to his personal use and the personal use of others.  This scheme involved Palazzo submitting to the district for payment false invoices that purported to be for IT-related goods and services purchased from legitimate companies by the district’s IT Department to benefit the district.  Palazzo represented that the invoices he submitted were legitimate, and he approved the false invoices himself or forged the signature of another in the approval section, according to court documents.

However, these invoices were for services never performed, fictitious software and hardware, and software and hardware never received or already purchased by the district from another source.  The companies named on the invoices did not supply such goods to or perform such services for the district and were nothing more than “shells,” according to court documents.

Palazzo’s actions caused the district to issue checks to these shell vendor corporations, which were established and owned by others working with Palazzo.  The shell vendor corporation owners, in turn, kept approximately half of the stolen money themselves and funneled the remainder of the money back to Palazzo for his personal use, according to court documents.

As a result of the conduct of Palazzo and his co-conspirators, the district was defrauded and sustained a total loss of at least $3,333,448, according to court documents.

Palazzo also engaged in a second scheme to defraud the district.  It involved Palazzo purchasing various personal electronic items, such as I-Pads, cameras, and televisions, from legitimate district vendors.  Palazzo then altered the invoices from such purchases to falsely reflect that classroom items, such as digital microscopes, projectors, and laptops, had been purchased for the district and submitted those invoices to the district for payment.  Upon receipt of these personal electronic items, Palazzo sold them to third-parties at a discounted price and kept the money from such sales for his own personal use, according to the information.

As a result of the Palazzo’s conduct in the second scheme, the district was defrauded and sustained an additional loss of at least $76,214, according to the information.

This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation, both located in Cleveland, with the assistance of the State of Ohio Auditor’s Office, the Cuyahoga County Sheriff’s Office, and the United States Postal Inspection Service.
The case is being prosecuted by Assistant United States Attorney Rebecca Lutzko, Special Assistant United States Attorney Perry Mastrocola, and Assistant United States Attorney James L. Morford.

Oct. 18, 2013

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced that a federal grand jury returned a 12-count indictment charging Renard Torrence, age 50, of Canton, Ohio, with engaging in the business of dealing in firearms without a license and with theft of firearms from federal firearms licensees.

Count 1 of the indictment charges that from in or about April 2013, to in or about August 2013, Torrence dealt in firearms without being a federally licensed firearms dealer.

Counts 2 through 12 of the indictment charges that Torrence stole firearms from Federal Firearms Licensees as listed below.

COUNT

DATE

FIREARM

FFL

2

April 11, 2013

Smith & Wesson, Model SD40VE, .40 pistol

MC Guns LLC, Medina, Ohio

June 11, 2013

Keltec, Model P11, 9mm pistol

All Seasons Sports Center, Inc., Wooster, Ohio

4

June 20, 2013

Bersa, Model Thunder, .380 pistol, and a Keltec, Model P11, 9mm pistol

Kames Sports Center, North Canton, Ohio

5

July 2, 2013

Smith & Wesson, Model SD9VE, 9mm pistol, and a Ruger, Model P89, 9mm pistol

Miller Gun Supply Ltd., Sugarcreek, Ohio

6

EAA, Model SARK2P, 9mm pistol, and a Smith & Wesson, Model SD9VE, 9mm pistol

Valley Gun & Collectables Inc., Strasburg, Ohio

7

July 17, 2013

Smith & Wesson, Model MP40, .40 pistol, and a Beretta, Model 92FS, 9mm pistol

Midwest Gun Club, Canal Fulton, Ohio

8

July 19, 2013

Glock, Model 21, .45 pistol, and a Keltec, model P32, .32 pistol

Pro Armament Co. Cuyahoga Falls, Ohio

9

July 25, 2013

Kahr, Model CW9, 9mm pistol, and a Smith & Wesson, Model SD40, .40 pistol

Top Gun Supply, Chesterland, Ohio

10

July 29, 2013

Smith & Wesson, Model MP9, 9mm pistol, and a Keltec, Model PF9, 9mm pistol

The Hunt’n Shack, Carrollton, Ohio

11

July 31, 2013

Smith & Wesson, Model SD9VE, 9mm pistol, and a Smith & Wesson, Model MP15, .223 rifle

Apex Powersports, New Philadelphia, Ohio

12

August 5, 2013

Taurus, Model PT92, 9mm pistol, a Smith & Wesson, Model MP40, .40 pistol, and a Marlin, Model 75C, .22 rifle

Top Shot Firearms LLC, Ravenna, Ohio

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the 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 Carroll County Sheriff’s Office.  The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.

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

An Akron man was sentenced to 10 years in prison for leading massive mortgage fraud schemes in Ohio and Florida, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The restitution owed by Jack R. Coppernger, age 50, will be determined later this year. The government has asked for $35 million.

More than 40 people have been found guilty of crimes for their various roles in the mortgage fraud, which has led to losses of more than $36 million.

“This defendant led a ring whose crimes covered two states and resulted in losses of tens of millions of dollars,” Dettelbach said. “Mortgage fraud crimes devastate entire neighborhoods and communities.”

In delivering his sentence, U.S. District Judge John Adams said to Coppenger: “This was all greed. This was all planned, this scam and scheme. You knew and you had to know when this house of cards began to fall. You’re still out looking for new people to prey on.”

Coppenger previously pleaded guilty to two counts of conspiracy.

In the first count, Coppenger conspired to commit bank fraud and to make false statements to influence a bank to make a loan in connection with a mortgage fraud scheme involving property in the Panama City, Florida area, resulting in approximately a $36 million loss.

In the second count, Coppenger conspired to defraud the United States by impairing and impeding the ability of the I.R.S to assess Coppenger’s taxes in 2006 by concealing funds Coppenger received from a land “flip” conducted by Andrew Norman and Jason Herceg.

Norman and Herceg were both recently sentenced to 40 months in prison and ordered to pay $14 million in restitution.

According to court documents, they operated a company in Stow under the name of V.P. Equity LLC and, with Coppenger, procured “straw buyers” and submitted false loan documents to banks to purchase Coppenger’s lots in Florida (which had already been inflated in value as part of a land flip) in a mortgage fraud scheme.

Coppenger, with assistance from Herceg and Norman, perpetrated a large mortgage fraud scheme involving numerous straw buyers primarily from the Akron, Hartville, and Mentor areas. These straw buyers essentially sold their good credit scores to Coppenger in order for Coppenger to secure loans, through straw buyers’ names, for properties in Florida. Coppenger promised the straw buyers that if they signed the loan application and paperwork, Coppenger would pay them an inducement amount.

Coppenger then promised the straw buyers that he would make all the mortgage payments for the property and would make any down payments that were necessary, and that, once the property was developed and sold, they would split the profits equally.

Ultimately, Coppenger failed to make the mortgage payments on these loans, resulting in a loss of approximately $36 million, according to court documents.

Herceg and Norman defrauded two elderly purchasers by selling them a Florida property for $7 million. Moments before this sale, Herceg and Norman bought the property through their partnership, 104 Investments, from the original seller and inflated its value by approximately $2.6 million. Herceg and Norman then sold this property to these elderly purchasers, who were never told of the last minute “flip”, or that they were actually buying the land from Herceg, Norman, and 104 Investments. Herceg and Norman, and their 104 Investments business partner, Robert Jason Workman, received approximately $2.6 million from this sale which they then funneled portions of the proceeds out to themselves which included a $690,000 to Coppenger as payment for locating the property. Subsequently, Norman, Herceg, and Workman fraudulently deducted the money they gave to Coppenger as a business expense.

Coppenger was also conspired with business partner Kathleen A. Fada-Murray and her husband, Willliam Murray, to defraud the United States by concealing from the I.R.S. their receipt of monies from the fraudulent land flip. William Murray and Fada-Murray were not involved in the fraud against the elderly purchasers but were owed a return on her investment in Coppenger’s company, SMB&A. Once Fada-Murray became aware that Coppenger had received $690,000 as a result of the fraud in count one, she took steps to obtain some of this money herself, her husband, and others, and conspired with Coppenger to conceal their receipt of these funds from the I.R.S. by transferring funds into and out of accounts with corporate names, and out of an account in the name of Coppenger and his wife, characterizing these funds as a repayment of a loan, and using these funds to pay for Fada-Murray’s personal expenses, including online gambling debts, credit card payments, car payments, and federal and state taxes, as well as for personal expenses of Coppenger, including carpeting, car payments, and the payment of business expenses to keep the mortgage fraud scheme going.

Both Fada-Murray and William Murray pleaded guilty to their roles in this scheme. William Murray was also charged with recruiting two straw buyers for Coppenger in this scheme. Fada-Murray was sentenced to five years probation and ordered to pay back taxes while William Murray was sentenced to two years in prison and ordered to pay $450,440 in restitution. Workman was sentenced to six months in prison and ordered to pay $77,000.

Thus far, 37 straw buyers have pleaded guilty to a charged of conspiracy to commit loan fraud and bank fraud. All have been sentenced or are awaiting sentencing.

The case is being prosecuted by Assistant U.S. Attorneys Christian H. Stickan and Henry F. DeBaggis, following investigation by agents of the IRS-CI and FBI, Akron Office.

A Shaker Heights man was indicted for impersonating a diplomat and attempting to buy a house and car using fictitious financial documents, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Derek J. Bishop, 42, was named in a seven-count indictment filed in U.S. District Court. He is charged with fictitious obligations, impersonating a diplomat and wire fraud.

Bishop used fictitious Fifth Third checks in March 2013 to attempt to purchase a Nissan Armada for $54,098 from Ganley Nissan. He also tried to use fictitious checks to make payments to Verizon, AT&T, and Nationwide Insurance, according to the indictment. 

Bishop falsely claimed he was a foreign diplomat of the Vatican/Postmaster General of the Divine Province in an attempt to avoid paying taxes on the vehicle and to demand his release from the Cuyahoga County Jail, according to the indictment. 

Finally, Bishop used fraudulent trust documents in March 2013 to attempt to purchase property in Moreland Hills, Ohio, for more than $3.1 million. He attempted to purchase the property by providing Chicago Title Company LLC with false and fraudulent trust documents representing to be for the Bishop Family Trust, even though the trust had no assets or funds to pay the purchase price, according to the indictment.

This case is being prosecuted by Assistant United States Attorney Matthew W. Shepherd following an investigation by the Federal Bureau of Investigation.           

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

An 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 10-count information was filed charging an Aurora, Ohio, man with defrauding his Beachwood-based employer and its investment clients out of about $366,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland office of the Federal Bureau of Investigation.

Andrew J. Franz, age 41, was charged with 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.”

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 more than $366,000 in 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.

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

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

The case is being prosecuted by Assistant U.S. Attorney 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.

Two Lorain County men were charged with conspiracy to commit wire fraud for defrauding companies and customers out of more than $290,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Charged in the criminal information are Gregory R. Klima, 52, of Avon Lake, and Timothy R. Grodzik, 52, of Columbia Station. The men owned Title Access, LLC, with Klima serving as president and Grodzik as vice president of sales, according to the information.

Title Access was formed in 2000 and in the business of administering real estate transactions by providing services including title insurance and escrow account management. Title Access used Stewart Title as an underwriter for the issuing of title insurance, according to the information.

Klima and Grodzik are accused of defrauding Stewart and parties to real estate transactions by diverting funds from Title Access’ escrow account for their personal benefit between December 2009 and February 2011, according to the information.

Around February 2011, Grodzik, with Klima’s knowledge, falsified Access’ financial documents to conceal from a Stewart auditor the fact that they diverted funds from the Title Access escrow account, according to the information.

This case is being prosecuted by Assistant U.S. Attorney Robert J. Patton following an investigation by the Federal Bureau of Investigation and the Ohio Department of Insurance.

An information 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 people were indicted on unrelated cases of illegal reentering the United States following deportation, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

One indictment alleges that Yobany Teofilo Gonzalez-Velasquez, 37, is undocumented and was previously removed or deported from the United States to Guatemala on February 12, 2009, subsequent to a conviction for an aggravated felony.

Another indictment alleges that Julio Cruz-Lopez, 27, is undocumented and was previously removed or deported from the United States to Mexico on multiple occasions.

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 cases are being prosecuted by Assistant U.S. Attorneys Phillip J. Tripi and Justin Seabury Gould, following investigation by agents of the Enforcement and Removal Operations of the Immigration and Customs Enforcement Agency.

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

A grand jury returned a two-count indictment charging Cleven Thomas, aka Cleveland Thomas, age 69, with one count of making false statements in application for a passport and one count of making false statements to a federal agency, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges that on or about January 28, 2013, Thomas knowingly and willfully made false statements on a passport application, including his failure to disclose his use of multiple birth dates and Social Security Account Numbers, his prior marriage, and his prior divorce.

The indictment also alleges that on or about May 30, 2013, Thomas made a material false statement to special agents of the United States Department of State, Bureau of Diplomatic Security in that he claimed his passport application was true and accurate.

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 Phillip J. Tripi, following investigation by agents of the United States Department of State, Bureau of Diplomatic Security.     

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

A federal grand jury returned a three-count indictment charging Peter J. Schmidt, age 26, of Lexington, Ohio, with producing, distributing and possessing child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges on or about July 7, 2006, and July 8, 2006, Schmidt used, persuaded, induced, enticed and coerced a minor, to engage in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced using materials that had been mailed, shipped, and transported in interstate and foreign.

The indictment also charges that on or about March 11, 2013, Schmidt knowingly distributed five computer image files, which files each contained a visual depiction of a real minor engaged in sexually explicit conduct.

The indictment also charges that on or about June 4, 2013, Schmidt knowingly possessed a computer disk, which contained visual depictions of real minors engaged in sexually explicit conduct.

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

This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Canton office of the Federal Bureau of Investigation.

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

A Florida man was indicted on four counts for a scheme in which he defrauded Fifth Third Bank out of approximately $4 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Russell W. Spitz, age 75, owned and operated his company, Vision Power Systems, out of the Jacksonville, Florida area, where is currently residing. He was indicted on one count of bank fraud and three counts of wire fraud.

The indictment charges that between in or around December 2006, and in or around August 2008, Spitz knowingly executed a scheme to defraud Fifth Third Bank of approximately $4 million.

The indictment alleges that this scheme began when Spitz’s company, Vision Power Systems, agreed to construct and operate a biomass boiler for FiberCorr, a corrugated paper company based in Massillon, Ohio. The biomass boiler was intended to reduce energy expenses by providing heat and steam power to FiberCorr’s paper mills. The project was financed by the Stark County Port Authority, but Fifth Third Bank issued a letter of credit to guarantee the bonds.

The indictment alleges that Spitz submitted a number of fraudulent documents to Fifth Third Bank during the loan negotiation process, which Fifth Third Bank relied up on when it decided to enter into the loan agreement with Spitz. Fifth Third Bank disbursed approximately $4.1 million for the project.

The indictment alleges that Spitz did not use the funds for construction of the boiler, and, as a result, construction on the boiler stopped in 2008. The project was never completed.

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.

This case is being prosecuted by Assistant U.S. Attorney Chelsea S. Rice of the Cleveland U.S. Attorney’s Office, 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.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that a federal grand jury returned indictments charging two people with possession of contraband in prison.

One indictment charges that on or about August 7, 2012, while an inmate in Federal Correctional Institute Elkton, Jason D. Melton, age 32, possessed marijuana in violation of federal statutes prohibiting the possession of contraband in prison.

Another indictment charges that on or about April 4, 2013, Albert Robinson, age 42, possessed marijuana while an inmate in Federal Correctional Institute Elkton.

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

This cases are being prosecuted by Assistant United States Attorneys M. Kendra Klump and Margaret Sweeney, following investigations by the Youngstown Resident Agency of the Federal Bureau of Investigation.

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

A pair from Northeast Ohio were named in an 84-count superseding indictment, charged with a variety of schemes that resulted in a loss of more than $43,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Charged are Angelique Bankston, 41, of South Euclid, Ohio, and Jocelyn Hale, 31, of Cleveland.

Bankston and Hale were each charged with one count of conspiracy to commit bank fraud, three counts of conspiracy to commit money laundering, one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of conspiracy to commit mail fraud.

In addition, Bankston was charged with five counts of bank fraud, eight counts of mail fraud, five counts of aggravated identity theft, and 59 counts of money laundering.

Hale was charged with four counts of bank fraud, one count of aggravated identity theft, and five counts of money laundering.

The superseding indictment alleges that Bankston and Hale, using identities of several individuals without their authority, defrauded Citizens Bank, Lending Club Corporation, and Wells Fargo Bank.

Bankston and Hale funded a Wells Fargo Bank account with counterfeit funds totaling $13,027.22, according to the indictment.

Bankston and Hale also funded a second Wells Fargo Bank account with illegally obtained funds.

The superseding indictment also alleges that Bankston defrauded the Ohio Department of Job and Family Services (ODJFS) and Dollar Bank.

Bankston funded a Dollar Bank account with illegally obtained funds totaling $27,460. Bankston defrauded ODJFS by causing the United States Postal Service to hold mail for several individuals, without their authority. Bankston then stole U.S. Bank ReliaCards issued by ODFJS in the amount of $2,800 in the names of those individuals, according to the indictment.

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

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

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

A two-count information was filed charging two people with aiding and abetting each other in an attempt to provide a cell phone to an inmate of a federal correctional facility, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that.

Charged are Anyelina Lespin, age 34, of the Bronx, New York, and Kendy Hernandez, age 29, of the Northeast Ohio Correctional Center.

Count one charges that Lespin, aided and abetted by Hernandez, attempted to provide a prohibited object, to-wit, a cell phone, to an inmate of a federal correctional facility on Jan. 12, 2013.

Count two charges that Hernandez, an inmate of a federal correctional facility, aided and abetted by Lespin, attempted to obtain a prohibited object, to-wit, a cell phone.

The information was filed by Assistant United States Attorney Gregory C. Sassé after investigation by the Federal Bureau of Investigation.

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

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

A Fairlawn man was sentenced to more than three years in prison and ordered to pay more than $14 million in restitution for his role in a mortgage fraud scheme in Florida and a separate scheme to defraud two elderly investors, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Jason Herceg, 37, previously pleaded to three charges. He admitted to participating in the two schemes and failure to report his income derived from the scheme against the elderly investors.

Herceg and his business partner Andrew Norman conspired with Jack Coppenger in procuring “straw buyers” and submitting false loan documents to banks to purchase Coppenger’s lots in Florida (which had already been inflated in value as part of a land flip) in a mortgage fraud scheme.  Coppenger, with assistance from Norman and Herceg, perpetrated a large mortgage fraud scheme involving numerous straw buyers, who essentially sold their good credit score to Coppenger, in order for him to secure loans, through straw buyers’ names, for property in Florida. 

Coppenger promised money to the straw buyers if they signed the loan application and paperwork, that he would make any down payment and all the mortgage payments for the straw buyers, and that, once the property was developed, they would receive half the profits from any sale, according to court documents.

Norman and Herceg were mentored by Coppenger in how to recruit and use straw buyers. Norman and Herceg assisted Coppenger by using their brokerage company, Akron-based V.P. Equity, to prepare and submit falsified loan documents to the banks, which fraudulently inflated the income and assets of the straw buyers to qualify them for these loans. Ultimately, Coppenger failed to make the mortgage payments on these loans, resulting in a loss to banks of approximately $13.1 million, according to court documents.  

In the second conspiracy scheme, Norman, Herceg, Coppenger and others, conspired to defraud two elderly individuals by selling them a Florida property for $7 million.  Moments before the sale, Norman and Herceg, with Coppenger’s help, bought the property, through their partnership, 104 Investments, from the original seller and inflated its value by approximately $2.5 million. They then sold this property to these elderly individuals, who were told they were buying the property from the original seller.  These elderly victims were never told of the last minute “flip” and that they were actually buying the land from Norman, Herceg and 104 Investments.  Norman, Herceg, and their 104 Investments business partner, Robert Jason Workman, received approximately $2.5 million from this gain, and funneled portions out to themselves and paid $690,000 to Coppenger as a kickback for setting up the fraudulent scheme, which they fraudulently deducted as a business expenses, according to court documents.

Norman also failed to report the income from this fraudulent scheme on his 2006 tax return.  

Norman was sentenced to more than three years in prison earlier this month. Coppenger has pleaded guilty and is awaiting sentencing.

The case is being prosecuted by Assistant U.S. Attorneys Christian H. Stickan and Henry F. DeBaggis, following investigation by agents of the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation’s Akron office.

Larry T. Chuppa was charged today with one count of structuring cash deposits into a financial institution in order to evade bank reporting requirements, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

According to court records, Chuppa, 57, currently resides in Avon, Ohio.

Between December 2011 through March 2012, Chuppa made a series of cash deposits at Fifth Third Bank for the purpose of evading reporting requirements, according to the information.

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

This case is being prosecuted by Special Assistant United States Attorney Perry D. Mastrocola, following an investigation by the Internal Revenue Service, Criminal Investigation.

A Toledo man was sentenced to 15 years in prison for sex trafficking of children, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Roy Calhoun, 30, guilty to multiple charges last year, including sex trafficking of children, conspiracy to obstruct a sex trafficking investigation and conspiracy to possess with intent to distribute Oxycodone.

“This defendant profited from children in the commercial sex trade,” Dettelbach said. “Our office will continue to pursue human trafficking cases with vigor.”

Calhoun was arrested in 2010 and accused of recruiting females, including minor children, to work as prostitutes between 2007 and 2010. He advertised a minor on craigslist.com on different occasions and drove the minor to Toledo-area hotels, according to court documents.

Calhoun beat and assaulted the females who worked for him and threatened those who left or attempted to quit working as prostitutes, according to court documents.

This case was prosecuted by Assistant United States Attorney James V. Moroney following an investigation by the Northwest Ohio Violent Crimes Against Children Task Force.

The NWOVCACTF includes members of the Federal Bureau of Investigation, Ohio Bureau of Criminal Identification and Investigation, Toledo Police Department, Lima Police Department, Perrysburg Township Police Department, Fulton County Sheriff's Office and the Ottawa County Sheriff's Office.

A federal indictment was filed charging five people with taking part in a $4.1 million mortgage fraud scheme involving six luxury properties in Medina, Ohio, and one property in Gates Mills, Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.   

The seven-count indictment charges one count of conspiracy to commit bank fraud and wire fraud, one count of conspiracy to commit bank fraud and five counts of bank fraud.

Those charged are:  Thomas G. France, age 43, of Strongsville; Katen S. Pabley, a.k.a. Keith Pabley, age 40, of Shaker Heights; Su Chi Straka, age 37, of Parma; Lisa R. Nagle, age 42, of Houston, Texas; and, Ranjeet Pabley, age 67, of Lombard, Illinois. 

Previously charged via information were Joseph Beccia, age 60, of Parma; and, Alex Blackmore, age 49, of Bronx, New York.

As part of the first mortgage fraud scheme, the indictment charges that from in or around May 2006 through on or about June 20, 2007, Beccia and his company, Horizon Construction, built six new, luxury properties in Medina.  Although some of the properties were not fully completed, Beccia listed five of the six properties for sale at purchase prices that were equal to the true market value of each property, starting on or about May 13, 2005. 

Specifically, Beccia listed the five properties for sale as follows:  2940 Sutton Lane, Medina for $599,000, on or about August 30, 2006; 4281 Fox Glen Drive, Medina for $395,000, on or about May 13, 2005; 4320 Perian Court, Medina for $399,000, on or about November 9, 2005; 3006 Sutton Lane, Medina for $529,500, on or about August 30, 2006; and, 4740 Lake Forest Trial, Medina for $925,000, on or about August 30, 2006. 

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

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

The indictment also charges that Beccia advised Jones and France the amount of money he required from the sale of each the properties in order for him to repay the amounts he had borrowed to construct the homes.  Then, Jones determined the additional amount of money he wanted to receive over and above the amount of money required to be distributed to Beccia after the sale of each property.  Beccia and France prepared new purchase agreements for each of the six properties with the inflated purchase price necessary to satisfy the amounts of money required.  After the newly inflated purchase agreements were created, the purchase agreements were provided to Straka and Nagel, knowing that they would provide appraisal reports to support the inflated purchase prices, according to the indictment.

Jones enlisted K. Pabley and Blackmore to be straw buyers/investors of Beccia’s properties.  Jones advised K. Pabley and Blackmore that if they would agree to allow these luxury homes to be purchased in their names, they would not have to provide any down payment funds because Jones would provide the down payment, and Jones would provide K. Pabley and Blackmore with a significant amount of cash back after the closing of each property for allowing their names to be used as the purchasers.  K.Pabley’s credit could not support the purchase of the luxury properties, so K.Pabley recruited R.Pabley, his mother, to serve as the straw buyer/investor.  Both R.Pabley, at the direction of K.Pabley, and Blackmore signed the loan documents containing false information in order for them to qualify to purchase the properties, according to the indictment.

The indictment charges that France re-listed five of the six properties for sale at the inflated purchase prices determined by Beccia and Jones as follows:  2940 Sutton Lane, Medina from $599,000 to $950,000; 4281 Fox Glen Drive, Medina from $395,000 to $647,000; 4320 Perian Court, Medina from $399,000 to $650,000; 3006 Sutton Lane, Medina from $529,500 to $920,000; and, 4740 Lake Forest Trial, Medina from $925,000 to $1,400,000.

Finally, the indictment charges that Jones enlisted the services of Marilyn Mannarino, an individual previously convicted in another mortgage fraud scheme, and Tower City Title on all six of Beccia’s properties.  Tower City prepared the HUD-1s to make it appear to the financial institutions and mortgage lenders that R.Pabley and Blackmore provided the down payments from their own personal funds, when in fact Jones provided the down payments.  Beccia, R.Pabley, and Blackmore signed the HUD-1s knowing that R.Pabley and Blackmore had not provided the down payments from their own personal funds.

Each of the properties for which defendants secured a mortgage loan went into foreclosure, resulting in a total loss of approximately $3,327,333, with Flagstar Bank incurring a loss of approximately $1,053,000, Lehman Brothers Bank incurring a loss of approximately $752,500, J.P. Morgan Chase incurring a loss of approximately $422,000, Suntrust Mortgage, Inc. incurring a loss of approximately $420,833, and American Brokers Conduit, a division of American Home Mortgage, Inc. incurring a loss of approximately $679,000, according to the indictment.            

In the second mortgage fraud scheme, the indictment charges Jones and K.Pabley of conspiring with D.C., owner of Perl Building Corporation, to fraudulent purchase the property located at 1924 Epping Road, Gates Miles, Ohio, in R.Pabley’s name.  Similar to Beccia, Jones identified D.C. as a builder in financial trouble and contacted D.C. with an offer to purchase the Epping Road property that D.C. had not been able to sell.  Jones explained that he had an individual willing to purchase the property, but that in order to make the transaction work they would need to inflate the purchase price of the property significantly over the fair market value of the property so that Jones could obtain the excess funds from the inflated purchase price.  Just as Jones had done with Beccia, Jones advised D.C. that he would handle all the aspects of the transaction.  All D.C. had to be willing to do was sign the HUD-1 containing the inflated purchase price, which D.C. agreed to do, according to the indictment.

Again, K.Pabley’s credit score would not support the purchase of the property, so he recruited R.Pabley to have the property purchased in her name.  And, again, Jones enlisted the services of Mannarino and Tower City Title to prepare the HUD-1 and handle the closing.  The loan application and HUD-1 were falsified in a similar manner as those in the Medina scheme and those involved in the Epping property signed the loan documents knowing they contained false information in order to induce the lender, Washington Mutual, to approve and fund the loan.  The Epping Road property, also, went into foreclosure creating a loss to Washington Mutual of approximately $807,000, according to the indictment.

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

This case is being prosecuted by Assistant United States Attorney Mark S. Bennett, following an investigation by the Cleveland Offices of the Federal Bureau of Investigations and the United States Secret Service.  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 returned a six-count indictment charging two people from Northeast Ohio with conspiracy with intent to distribute bath salts, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Indicted are Ryan Kralik, 32, of Newton Falls, and Ruth Eimers, 36, of Ravenna.

“People continue to come up with new ways to poison our children, as long as they think there is money to be made,” Dettelbach said. “These are very dangerous synthetic drugs that have nothing to do with baths or salt and everything to do with risky behavior.”

“These indictments deal a blow to the individuals and criminal groups involved in the distribution of a dangerous synthetic drug in Northeast Ohio. The criminal organizations behind the importation, distribution and selling of these synthetic drugs have scant regard for human life in their reckless pursuit of illicit profits," said William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Detroit, which covers Michigan and Ohio. "HSI is committed to working with our law enforcement partners to help keep this poison off the streets.”

Portage County Sheriff David Doak said: “The sale of bath salts is not going to be tolerated. We were glad to be part of this investigation.”

The defendants own and operate a website named freshsalts.com, which offers for sale 10 to 15 different types of bath salts ranging in price from $29 to $59. Customers can also purchase bulk amounts of bath salts from the web site for between $299 and $459, according to the indictment.

The bath salts are offered for sale with names similar to slang terms for cocaine and heroin, such as “Eightballz Extreme,” “Faux-Caine” and “Zombie Girls Extra Strength,” among others, according to the indictment.

Customers who purchased bath salts from the web site were required to pay with money orders or cashier’s checks to R.M. Kralik, Western Union wire transfer to “Ryan Kralik” in Warren, Ohio, of by cash sent to “FGS” to a P.O. Box in Diamond, Ohio, according to the indictment.

Eimers’ assisted Kralik with distribution shipments and bookkeeping, according to the indictment.

The defendants are charged with conspiracy to possess with the intent to distribute and distribution of bath salts, Schedule I controlled substance analogues and a Schedule I controlled substance; importation of bath salts, a controlled substance analogue, from the People’s Republic of China; attempted possession with the intent to distribute bath salts, a controlled substance analogue; use of the Internet for a controlled substance offense; distribution of bath salts, Schedule I controlled substance analogues; and possession with the intent to distribute bath salts, Schedule I controlled substance analogues. 

The case is being prosecuted by Assistant U.S. Attorney Teresa Dirksen following an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Portage County Drug Task Force and Portage County Sheriff’s Office

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.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that a federal grand jury returned an indictment charging Ronald Newnham, age 68, of Canton, with theft of government benefits.

The indictment charges that between on or about November 27, 2004, and on or about July 26, 2011, Newnham wilfully and knowingly stole and converted to his own use, death pension benefits issued by the Department of Veterans Affairs. Newnham caused the funds to be transferred from the beneficiary’s account to his bank account for his own personal benefit.

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

This case is being prosecuted by Assistant United States Attorney M. Kendra Klump, following an investigation by the Cleveland Resident Agency of the Department of Veterans Affairs Office of Inspector General.

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

A Cleveland Heights man was sentenced to 30 years in priso for seven counts bank robberies and attempting an eighth last year said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.

Kevin Walcott, age 40, previously plead guilty to the seven counts of bank robbery and one count of attempted bank robbery. He got nearly $13,000 from the robberies on the East Side of Cleveland, according to court documents.

“This defendant robbed more than a half-dozen banks during a month-long spree,” Dettelbach said. “Each of these incidents put people at risk.”

Anthony said: “The valuable partnership between the public, local law enforcement and the FBI helped put a stop to this string of bank robberies. The FBI commends the attentive citizens that assisted in bringing Kevin Walcott to justice.”

The robberies (all in 2012) are as follows:

Oct. 26: Dollar Bank, 2200 Warrensville Center Road, University Heights, $2,470.

Nov. 1: Ohio Savings Bank, 2066 Lee Road, Cleveland Heights, $690.

Nov. 2: PNC Bank, 10900 Lorain Road, Cleveland, $2,194.

Nov. 5: Citizens Bank, 5710 Mayfield Road, Lyndhurst, $1,021.

Nov. 8: Key Bank, 911 East 185th Street, Cleveland, $3,660.

Nov. 13: Huntington Bank, 920 East 185th Street, Cleveland, $800.

Nov. 15: Huntington Bank, 20601 Fairmount Blvd., Shaker Heights, $2,069.

Attempted: Nov 21: PNC Bank, 20711 Chagrin Blvd. Shaker Heights.

Walcott was arrested shortly after the attempted robbery of PNC Bank. According to court documents, Shaker Heights police found a handwritten note on him that read, in part: “I have a Gun and a Police Radio If I SEE Police or hear the ALARM you Die First If I don’t make it out you Die First Give me all your 100.00 Both Drawer’s 50.00 20.00 I sEE Bait MonEY 10.00 you Die.”

This case was prosecuted by Assistant United States Attorneys Margaret A. Sweeney and Phillip J. Tripi, following investigation by the Federal Bureau of Investigation and Shaker Heights Police Department.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that an information was filed against Diana Ousley, age 57, of Willard, Ohio.

The charge relates to Social Security Fraud beginning on or about May 2004 and continuing to November 2012. She is accused of fraudulently receiving $64,414.

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

The investigating agency in this case is the Office of Inspector General Social Security Administration.

The case is being handled by Assistant United States Attorney Angelita Cruz Bridges.

An information is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.

A grand jury returned a 57-count indictment charging 17 people for their roles in a conspiracy that distributed cocaine, heroin and marijuana on the streets of Youngstown, Akron and Columbus, law enforcement officials announced.

Terrance A. Tarver obtained cocaine and marijuana from individuals in Columbus for distribution in Youngstown, Akron and Columbus. Tarver also obtained heroin from sources in Youngtown and Akron for distribution in Youngstown and Akron, according to the indictment.

Tarver was one of 10 people named in a federal indictment filed in April 2012. He has pleaded guilty and is awaiting sentencing.

This indictment details a distribution network of people who obtained drugs from Tarver and then sold them throughout Northeast Ohio.

Count 1 charges all 17 people listed below with conspiracy to possess with intent to distribute cocaine, heroin and marijuana:

Defendant

Residence

Age

Benjamin J. Phillips

Cheraw, South Carolina

36

Youngstown, Ohio

41

Ronald O. Clark

Youngstown, Ohio

47

Phillip D. Whitman

Youngstown, Ohio

37

Gerard B. Balbirsingh

Farrell, Pennsylvania

45

Edward Odem, III

Sharon, Pennsylvania

34

Darryl C. Pippin

Youngstown, Ohio

43

Abdul W. Muhammad, aka Wally

Youngstown, Ohio

41

Clifton T. Hudson

Youngstown, Ohio

40

Dwayne A. Oliver

Youngstown, Ohio

42

Antjuan A. Adkins

Akron, Ohio

37

Edthaniel L. Tarver, aka Lamont

Youngstown, Ohio

37

Anthony J. Walker, aka Prem

Tempe, Arizona

36

Dontae R. Lackey

Columbus, Ohio

35

Quay L. Watkins

Akron, Ohio

35

Brandon M. Williams

Youngstown, Ohio

20

Patrick D. McWhorter

Youngstown, Ohio

21

“This group represents another layer of people who sold drugs throughout the region,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “They profited from other people’s addictions.”

“The individuals arrested this morning represent the second tier of this cocaine, heroin, and marijuana trafficking organization” said Stephen D Anthony, Special Agent in Charge of the FBI’s Cleveland office.  “As evidenced by this continuing investigation, the FBI will work with our law enforcement partners to target and eliminate the most significant threats to our communities.”

Lt. Jeff Solic, who leads the Mahoning Valley Law Enforcement Task Force, said: “These types of cases and arrests are only possible because of the tremendous cooperation between local, state and federal law enforcement.”

Counts 2-4 of the indictment charge defendants Benjamin J. Phillips, Abdul W. Muhammad, aka Wally, Brandon M. Williams and Patrick D. McWhorter with maintaining a premises for the purposes of distributing and using controlled substances.  Counts 5-57 of the indictment charge the defendants with using a telephone to facilitate drug trafficking.   

The investigation was conducted under the U.S. Attorney’s Organized Crime Drug Enforcement Task Force (OCDETF) which is part of a national program that seeks to identify, investigate and prosecute significant drug trafficking enterprises by utilizing multiple investigative and prosecution resources.

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

The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, the Drug Enforcement Administration and the Mahoning Valley Law Enforcement Task Force.  The case is being prosecuted by Assistant United States Attorneys Nancy L. Kelley and Linda H. Barr.

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

A Toledo man was found guilty by a jury on two counts of sex trafficking of children, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Brady Jackson, 27, will be sentenced later this year. An exact date has not been scheduled.

“This verdict is another stark reminder that human trafficking hides in plain sight,” Dettelbach said. “This defendant's sole purpose was to profit off these girls in the commercial sex industry.”

Jackson advertised on backpage.com in in Septmber 2011 that the two girls, ages 16 and 15, were available for prostitution. Jackson told the girls that he would take all the money they would make from prostitution but that he would take them shopping and get their hair and nails done, according to court records.

This case is being prosecuted by Assistant United States Attorneys Carol M. Skutnik and Ava Dustin following an investigation by the Northwest Ohio Violent Crimes Against Children Task Force (NWOVCACTF).

The NWOVCACTF, directed by the FBI Resident Agency in Toledo, Ohio, includes special agents of the FBI, and agents and officers from the Ohio Bureau of Criminal Identification and Investigation, Ohio Highway Patrol, Toledo Police Department, Lima Police Department, Perrysburg Township Police Department, Fulton County Sheriff's Office and the Ottawa County Sheriff's Office. Toledo Office of the Federal Bureau of Investigation.

#####

Anthony O. Calabrese III was sentenced to nine years in prison and ordered to pay more than $200,000 for his role in a series of bribery schemes involving Jimmy Dimora, Frank Russo, J. Kevin Kelley and others uncovered as part of the Cuyahoga County corruption investigation, federal law enforcement officials said.

“Anthony Calabrese misused his status as an attorney to facilitate bribes and foster corruption,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “Today's sentence reflects the fact that Calabrese was deeply involved in a variety of bribery schemes involving a school district, a halfway house and the infamous trip to Las Vegas, just to name a few.”

“His criminal conduct spanned his entire legal career,” Assistant U.S. Attorney Antoinette Bacon said in court.

Calabrese, 40, of Chagrin Falls, Ohio, previously pleaded guilty to 18 counts which detail improper payments of nearly $550,000. The counts include racketeering; conspiracy to commit mail fraud and honest services fraud; Hobbs Act conspiracy; bribery concerning programs receiving federal funds; conspiracy to commit mail fraud and mail fraud.

U.S. District Judge Sara Lioi sentenced Calabrese to 108 months in prison and ordered him to pay $132,041 in restitution -- $120,970 to Cuyahoga County and $11,071 to Parma schools. Calabrese has already forfeited $74,450

The racketeering charge involves conduct that took place between 2001 and 2009 in which Calabrese gave things of value to public officials and their designees in return for public officials taking and promising to take official action that benefitted Calabrese, Law Firm 1 (where Calabrese was an associate and partner), their clients and designees, according court documents.

Specifically, Calabrese participated in a scheme in which he and Cuyahoga County employee J. Kevin Kelley helped obtain tax exempt status for the property leased by Alternatives Agency around January 2004, according to court documents.

In September 2004, after a tax refund check was issued to Alternatives Agency for $144,216.26, Calabrese instructed Alternative Agency to issue a check to Business 45 for $72,000 and classify the expense as consulting, despite Calabrese knowing that Business 45 performed no consulting services for Alternatives Agency to justify the expense, according to the indictment.

Business 45, in turn, issued checks payable to Calabrese for $31,500 and J. Kevin Kelley Consulting, LLC, for $35,500. Business 45 kept the remaining $5,000, according to the indictment.

In another scheme, Calabrese lobbied Kelley (a member of the Parma School Board) and other members of the Parma School Board in January 2005 to contract with Business 9 to serve as project manager for a renovation project. Business 9 was a construction company that specialized in stone and brick masonry and was a client of Law Firm 1, according to court documents.

In September 2005, the Parma School Board, with Kelley voting in favor, awarded a contract worth $1.8 million to Business 9, according to court documents.

Calabrese and Kelley arranged for Business 9 to hire The Eagle Group, a consulting company formed by Daniel P. Gallagher. In August 2009, Business 9 sent a check for $15,000 to Eagle. Gallagher then paid a portion of that money to Kelley and Kevin Payne, according to court documents.

Other conduct detailed in court documents includes Calabrese, Kelley, Brian Schuman, former Cuyahoga County Auditor Frank P. Russo and former Cuyahoga County Commissioner James C. Dimora conspiring to increase the funding for Alternatives Agency.

In or around January 2008, Calabrese, who served as legal counsel for Alternatives Agency, instructed Schuman, an employee of Alternatives Agency, to increase Kelley’s monthly consulting fee by $2,000 for four months for the purpose of funding expenses associated with a Las Vegas trip for Dimora, Russo and Public Employee 55, according to court documents.

In or around 2003, Prudoff began receiving payments from Alternatives Agency on a monthly basis, purportedly for consulting work. When BE39 informed Calabrese that Alternatives Agency received no work product from Prudoff, Calabrese told BE39 that Prudoff was consulting on a Lorain expansion project, according to court documents.

BE39 questioned why Alternatives Agency was paying Prudoff, since he was the Community Development Director for Lorain and it would be within his job requirements to assist companies such as Alternatives Agency, who were interested in developing facilities in Lorain. Calabrese insisted that BE39 continue to cause Alternatives to pay Prudoff, according to court documents.

Calabrese did not inform the Alternatives board about the payments for consultants on a Lorain expansion project and the board did not approve payments to any such consultant, according to court documents.

In or around June 2005, Calabrese told BE39 that Prudoff had some issues arise and Prudoff’s monthly payment should be issued to Relative 2, who was related to Prudoff’s girlfriend, according to court documents.

In or around July 2005, Calabrese and Prudoff assisted Relative 2 in forming Business 46. On or about July 25, 2005, Alternatives Agency began issuing checks to Business 46 for approximately $4,000 on a monthly basis, according to court documents.

Prudoff provided favorable consideration to Calabrese and his designees on business matter unrelated to Alternatives Agency, in return and in exchange for the consulting fees that Calabrese caused Prudoff and Business 46 to receive from Alternatives, according to court documents.

In another case, Business 43 was incorporated in the State of Ohio in March 2005 and Calabrese’s relative (Relative 1) was the registered agent for the company. Calabrese caused Alternatives to engage Business 43's services but concealed from Alternatives his relative’s relationship to Business 43 and did not disclose to them that Relative 1 performed little or no work for Alternatives to justify the fees paid, according to court documents.

In or around 2002, Calabrese influence Alternatives to hire A.C. Sinagra and Associates. In January 2006, A.C. Sinagra and Associated entered into a contract setting a monthly consulting fee at approximately $1,500, according to court documents.

In March 2006, Calabrese and Sinagra agreed that Calabrese would cause Alternatives to increase its payments to A.C. Sinagra and Associates, and Sinagra would use the additional funds to pay persons or entities identified by Calabrese in the amounts Calabrese designated, according to court documents.

Calabrese first suggested Sinagra make consulting payments to Relative 1 through Business 43. He later asked Sinagra to pay Calabrese through Burlwood Holdings, an LLC formed in 2004 and controlled by Calabrese, according to court documents.

Calabrese also asked Sinagra to pay Relative 2 and Sinagra agreed to both requests. Sinagra performed no legitimate work for Alternatives to justify the increase in his fee, according to court documents.

In May 2006, Alternatives increased Sinagra’s monthly fee from $1,500 to approximately $6,000. In May 2006, A.C. Sinagra Company issued a check to Relative 2 for $2,000 and Berlwood Holdings (sic) for $2,000. This continued through November 2007, according to court documents. 

In sum, from Calabrese caused Alternatives to make payments to Prudoff and Relative 2 between July 2003 and March 2006 totaling approximately $144,000, according to court documents.

Calabrese caused Alternatives to make payments to Business 43 between March 2005 and March 2006 totaling approximately $12,950, according to court documents.

Calabrese caused Alternatives to make payments to A.C. Sinagra and Associates between January 2002 and November 2007 totaling approximately $190,500, according to court documents.

Calabrese caused Alternatives to make payments to J. Kevin Kelley Consulting between October 2004 and August 2008 totaling approximately $201,473, according to court documents.

Regarding Count 9, Relative 1's brother was Attorney 6. Attorney 7 was Calabrese’s relative and formerly related to Relative 1. On or about Feb. 2, 2009, Calabrese told BE39 that Calabrese and Attorney 7 had met with Attorney 6. Calabrese asked BE39 to meet with Attorney 6, according to the indictment.

BE39 met with Attorney 6 on Feb. 2, 2009. Attorney 6 told BE39 that Calabrese and Attorney 7 wanted Attorney 6 to meet with BE39 to go over the script, according to court documents.

Attorney 6 instructed BE39 that if anyone questioned BE39 about Relative 1, BE39 should say that BE40 and BE39 hired Relative 1 to work out of her home to help with the Lorain expansion, which Calabrese and BE39 knew was not true, according to court documents.

This case was prosecuted by Assistant U.S. Attorneys Antoinette T. Bacon and Nancy L. Kelley.  The investigation was conducted by the Cleveland office of the Federal Bureau of Investigation and the Internal Revenue Service.

A federal grand jury returned a four-count indictment charging Christopher Cavna, age 26, of Youngstown, Ohio, with producing, distributing and receiving child pornography, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges that on or about May 19, 2013, Cavna knowingly permitted a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced using materials that had been mailed, shipped, and transported in interstate or foreign commerce by any means, including by computer.

The indictment also charges that on or about May 20, 2013, Cavna knowingly permitted a different minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced using materials that had been mailed, shipped, and transported in interstate or foreign commerce by any means, including by computer.

The indictment also charges that on or about May 20, 2013, Cavna knowingly distributed two computer image files, each containing a visual depiction of a real minor engaged in sexually explicit conduct. The indictment also charges that from on or about October 12, 2011 though October 28, 2012, Cavna knowingly received and distributed numerous computer files, which files contained visual depictions of real minors, other than those previously mentioned, engaged in sexually explicit conduct.

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

This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan.

The case was investigated by the Youngstown office of the Federal Bureau of Investigation, the Mahoning County Violent Crimes Task Force and the Ohio Adult Parole Authority.

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 Roland Jerome Lamarr, 59, with bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Lamarr robbed Charter One Bank located at 1215 Superior Avenue, Cleveland, Ohio, on May 2, 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 Cleveland Division of Police.

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 grand jury returned a three-count indictment charging Yong Xiang Chen aka Qin Dong, age 37, of Parma, Ohio, with one count of naturalization fraud and two-counts of perjury, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that Chen, a citizen of China, lied in his naturalization application and interviews when applying for naturalization by failing to disclose his use of another name when seeking immigration benefits.

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 Phillip J. Tripi, following investigation by agents of the Immigration and Customs Enforcement, 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.

The former director of the Cleveland VA Medical Center was indicted on 36 counts, accused of accepting bribes in return for influencing development projects and decisions involving the U.S. Department of Veterans Affairs, law enforcement officials said.

William D. Montague, 61, of Brecksville, was 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 indictment is part of the Cuyahoga County corruption investigation.

“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 arrest of Montague reflects law enforcement’s continued dedication to root out corruption at any level.”

“Violating the public trust for personal gain cannot be tolerated, particularly at the expense of our nation’s heroes,” said Gavin McClaren, United States Department of Veterans Affairs – Office of Inspector General, Resident Agent in Charge, Cleveland.

The Louis Stokes Cleveland VA Medical Center was approximately the fifth-largest in the country, annually serving about 95,000 veterans who lived in 24 counties in Northeast Ohio. Montague began working for the VA in 1975 and served as director of the Cleveland VA Medical Center from 1995 until his retirement in 2010, according to the indictment.

The VA had been operating medical facilities in both Brecksville and the Wade Park neighborhood in Cleveland. In the early 2000s, the VA began exploring the feasibility of consolidating the facilities into one location, known as the VA Development Project. The combined facility would include a domiciliary, office space and parking, according to the indictment.

The VA selected Business 42 to develop and managed the VA Development Project. Michael Forlani was the sole member of Business 42, and he had multiple other business interests, including as president and part-owner of Doan Pyramid LLC, according to the indictment.

Forlani is currently serving eight years in prison after pleading guilty to racketeering, bribery and other charges.

On or about Jan. 1, 2010, Business 66 began operations, having purchased Doan’s assets. Business 66 operated out of Doan’s former office space and retained many Doan employees, according to the indictment.

Montague solicited and accepted gifts, payments and other things of value from Forlani and Business 66, including a consulting contract between Business 66 and House of Montague, a financial services company Montague started in 2008, according to the indictment.

The indictment details numerous instances between 2007 and 2010 in which Montague took actions on behalf of Forlani or others. Those activities include helping expedite getting a bond rating from Standard & Poors and desired ratings, help getting desired legal opinions from the VA, help getting desired parking rates, and other activities.

Montague retired from the VA on Feb. 3, 2010, about a month after Business 66 began operations. On Feb. 15, 2010, Business 66 issued a check to House of Montague for $2,750, the first of many approximately monthly checks. On Dec. 29, 2010, Montague became a member of the Business 66 Board of Advisors, according to the indictment.

From about Feb. 15, 2010 through May 2012, Business 66 paid House of Montague $156,750, according to the indictment.

In a different scheme, Montague entered into a consulting agreement with a company identified as Business 73, headquartered in Virginia. The company agreed to pay Montague $2,500 a day for a minimum of 24 days, between July 1, 2008 and July 1, 2009, while Montague was still employed by the VA, according to the indictment.

Montague emphasized his ability to access key decision makers in the VA quickly and effectively as one of the reasons he could help Business 73 develop joint ventures and/or expand services provided by the VA. Montague told an official at Business 73 that he had consulted with a VA ethics panel and that he had authorization to do the consulting work as long as he took vacation time to perform the work. In fact, Montague had no such authorization, 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 federal grand jury returned a two-count indictment charging five Stark County residents with being engaged in a conspiracy to launder more than $530,000 obtained through the operation of an illegal sports bookmaking operation, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Joseph D. Nemeth, age 49, Rhonda S. Albaugh, age 45, both of Uniontown, Ohio, Joseph M. Nemeth, age 75, Helen C. Nemeth, age 75, and Robert T. Johns, age 66, all of Canton, Ohio, are indicted in count one with conspiracy to launder monetary instruments.

Joseph D. Nemeth faces an addition count of transmitting wagering information in interstate commerce. He is accused of being engaged in the business of betting and wagering and with using one or more wire communication facilities for the transmission and interstate commerce of bets and wagers and information assisting in the placing of bets and wagers on one or more sporting events and contests.

The indictment alleges that all of the defendants from conspired to launder at least $530,000 generated from an illegal sports bookmaking operation between 2004 and 2013.  All but $15,000 of these transactions occurred after November 1, 2008, according to the indictment.

Joseph D. Nemeth conducted a sports bookmaking operation by accepting wagers on professional and college basketball and football games. He collected a percentage off the bets and used offshore Internet gambling services to record and process bets placed by his gamblers. He travelled to various businesses and residential locations to meet with bettors, reconcile accounts and collect or pay money, according to the indictment.

Joseph D. Nemeth instructed Robert Johns and other gamblers to pay some of their loss debts to him by paying Rhonda Albaugh by check, which she then deposited into various bank accounts.

Joseph D. Nemeth and Albaugh opened numerous credit card and bank accounts and utilized them to receive payments from various gamblers. They also took illegal gambling proceeds and invested them into real estate and construction projects, which were titled in the names of others, including Helen Nemeth and Joseph M. Nemeth, according to the indictment.

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

The investigation preceding the indictment was conducted by the United States Secret Service and its Money Laundering Task Force.  The matter was presented to the grand jury by Assistant United States Attorneys Robert E. Bulford and Robert J. Patton.

An indictment is only a charge and is not evidence of guilty.  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 Ashland residents held a cognitively disabled woman and her child against her will for more than two years and forced her perform manual labor for them, law enforcement officials said.

The conspiracy included beating the disabled woman and her child, threatening the woman with a firearm, threatening to kill the woman and her child, threatening the woman and her child with large snakes, forcing them to sleep in a padlocked room with a large iguana and other actions, according to charges filed in U.S. District Court.

Jordie L. Callahan, 26; Jessica L. Hunt, 31, and Daniel J. Brown, AKA D.J. Brown, 33, were all arrested today and charged with forced labor. Callahan is charged with an additional count of tampering with a witness.

“We are yet again reminded that modern-day slavery exists all around us,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “One of our nation’s core values is freedom, yet this woman and her child were denied freedom for two years. The victims in this case endured violence, threats, sub-human living conditions and other horrific acts.”

“These defendants violated the victim’s most basic civil right, freedom, by exploiting her most basic instinct, the protection of her child,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The FBI continues to aggressively pursue and bring to justice those individuals who abuse and harm innocent members of our community.”

“The streets are a lot safer with these folks locked up,” Ashland Police Chief David Marcelli said. “Cooperation with the FBI and U.S. Attorney’s Office was key to the successful arrest of these individuals.”

Ashland County Prosecutor Ramona Rogers said: “We are pleased to cooperate with federal authorities, particularly when it provides for a more severe punishment for these defendants.”

All three are accused of participating in a conspiracy between May 2011 and October 2012 in which they held a woman and her juvenile child in a condition of forced labor and involuntary servitude.

An affidavit from FBI Special Agent Michael Sirohman was filed along with the charges.

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

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

Callahan and Hunt monitored S.E. and her child’s activities with a baby monitor, according to the affidavit.

Hunt was in possession of all of S.E.’s government benefits cards and the PINs. Hunt normally used nearly all of the money on the cards and rarely gave any money to S.E., according to the affidavit.

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

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

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

S.E. and her child were only allowed to eat canned food or what was left over after Callahan, Hunt and Hunt’s children ate. S.E. was not allowed to feed fruit or vegetables to her child, but Callahan and Hunt ordered S.E. to feed fruit and vegetables to the iguana that freely roamed in their bedroom. On another occasion, S.E. said her child had not eaten all day, but Callahan got a plate of food and gave it to a dog rather than letting them eat, according to the affidavit.

Callahan and Hunt also repeatedly taunted and threatened S.E. and B.E. with injury from the couple’s snakes, including a poisonous coral snake, a ball phython and a Burmese python that weighed 130 pounds, according to the affidavit.

In August 2011, the conspirators slammed S.E.’s hand with a rock in order to obtain pain medication. She was taken to the emergency room and returned with a prescription for pain medication, according to the affidavit.

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

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

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

In October 2011, Callahan and Hunt forced S.E. to hit her child, threatening to inflict much greater physical harm on both if S.E. did not do so. Callahan and Hunt used Callahan’s mobile phone to record S.E. purportedly abusing her child via the baby monitor.

About a year later, S.E. was arrested for shoplifting a candy bar. She asked to be taken to jail, said she was living with Callahan and Hunt and that they “were mean to her,” according to the affidavit.

A police officer went to Callahan and Hunt’s apartment. When the officer advised Callahan that S.E. would not return, Callahan told police he believed S.E. was abusing her child and showed them the mobile phone video from October 2011.

S.E. later told police that Callahan had showed her video recordings of her beating her child after being instructed to do so by Callahan and Hunt. Callahan told S.E. that if she “messed up” or told police about her living conditions, Callahan would show the videos to police and have her daughter taken away, according to the affidavit.

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

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 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.

A charge 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 investigation is ongoing.

The director of a Cleveland non-profit organization pleaded guilty today to withholding taxes from employees but not paying them over to the government, said Steven M. Dettelbach, the United States Attorney for the Northern District of Ohio.

Edward G. Kramer, 62, also evaded his personal income tax obligations when he falsified his income tax returns for two years and did not file a file return in two other years.

He pleaded guilty to a 10-count criminal information in U.S. District Court Thursday. He is scheduled to be sentenced Sept. 13.

“We all have an obligation to truthfully report our income and pay taxes,” Dettelbach said. “It is especially incumbent on those who work in our legal system to follow the law themselves.”

Kramer was director and chief counsel of Housing Advocates, Inc., a non-profit organization in Cleveland that received federal funding from the U.S. Department of Housing and Urban Development. Kramer also maintained a private law practice and owned a property leasing business called Remark, according to the information.

Kramer underreported his income for calendar years 2007 (underreported by $79,262) and 2008 (underreported by $101,571), the understatement consisting of unreported payments from Housing Advocates accounts for his benefit as well as unreported income from his private law practice, according to the information.

Kramer also failed to file income tax returns for 2009 and 2010, despite the fact that he had taxable income of approximately $149,884 in 2009 and $270,687 in 2010, according to the information.

Collectively, Kramer sought to avoid paying taxes on approximately $500,000 in income between 2007 and 2010, according to the information.

Kramer was responsible for collecting, accounting for and paying over quarterly to the Internal Revenue Service income and FICA taxes on behalf of Housing Advocates, Inc. The organization deducted and collected the required taxes from the wages of its employees but Kramer willfully failed to pay over the taxes, according to the information.

The taxes collected but not paid over from January 2009 until September 2010 total nearly $80,000, according to the information.

This case is being prosecuted by Assistant U.S. Attorney Justin J. Roberts following an investigation by the Internal Revenue Service – Criminal Investigations and the Department of Housing and Urban Development – Office of Inspector General.

A Cleveland man was found guilty of trying to use explosives to destroy a bridge in Northeast Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation.

Joshua Stafford, 24, was found guilty of conspiracy to use weapons of mass destruction, attempted use of weapons of mass destruction and malicious use of an explosive device to destroy property used in interstate commerce following a three-day trial before U.S. District Judge David Dowd. Stafford is scheduled to be sentenced on Sept. 11 at noon.

“We all need to thank the FBI and its law enforcement partners,” Dettelbach said. “The evidence in this trial made clear that their actions saved innocent lives. By being diligent, smart and responsible, law enforcement agents were able to not only literally defuse a dangerous situation, but they also were able to catch a dangerous group of violent men before they were able to harm anyone else.”

“This defendant took it upon himself to operate the cell phone he believed to be the device that would detonate two IED devices and cause potentially significant damage to the Route 82 Brecksville-Northfield High Level Bridge,” Anthony said. “This defendant’s callous disregard for our community, all in the name of making his own ideological views known, reinforces the need for law enforcement to work diligently to confront and stop terrorists from committing violent acts against our fellow citizens.”

Stafford is the last of five men to be found guilty for their roles in a conspiracy to destroy the Route 82 Brecksville-Northfield High Level Bridge. Cars travel over the bridge, which crosses from Brecksville, Ohio to Sagamore Hills, Ohio over the Cuyahoga Valley National Park.

Douglas L. Wright, of Indianapolis, was sentenced to 11 ½ years in prison followed by a lifetime of supervised release.

Brandon L. Baxter, of Lakewood, Ohio, was sentenced to nine years and nine months in prison followed by a lifetime of supervised release.

Connor C. Stevens, of Berea, Ohio, was sentenced to eight years and one month in prison followed by a lifetime of supervised release.

Anthony M. Hayne, 35, of Cleveland, was sentenced to six years in prison followed by a lifetime of supervised release.

Those four men pleaded guilty last year to conspiracy to use weapons of mass destruction, attempted use of weapons of mass destruction and malicious use of an explosive device to destroy property used in interstate commerce.

Hayne, Wright, Baxter, Stevens and Stafford were arrested on April 30.

According to court documents, Wright, Baxter, Hayne, Stevens and Stafford were self-proclaimed anarchists who formed into a small group and considered a series of evolving plots over several months. 

The initial plot involved the use of smoke grenades to distract law enforcement in order for the co-conspirators to topple financial institution signs atop high rise buildings in downtown Cleveland, according to the complaint. 

The plot later developed to the utilization of explosive materials. The defendants conspired to obtain C-4 explosives contained in two improvised explosive devices to be placed and remotely detonated, according to the complaint. 

The defendants discussed various bridges and physical targets in and around the Cleveland, Ohio metropolitan area over the course of several months.  The final plan resulted in the Route 82 Brecksville-Northfield High Level Bridge being the designated target. 

The public was never in danger from the explosive devices, which were controlled by an undercover FBI employee.  The defendants were closely monitored by law enforcement.  The explosives that the defendants allegedly purchased and attempted to use were inoperable and posed no threat to the public. 

This case is being prosecuted by Assistant U.S. Attorneys Duncan T. Brown, Justin E. Herdman and Thomas E. Getz following an investigation by the FBI and the FBI’s Joint Terrorism Task Force.

Agencies represented on the FBI’s Joint Terrorism Task Force include:  Cuyahoga County Sheriff’s Office, Federal Air Marshal Service, Cleveland Police Department, Cleveland Heights Police Department, U.S. Secret Service, U.S. Coast Guard Investigative Service, Ohio Bureau of Criminal Investigation and Intelligence, Westlake Police Department, U.S. Diplomatic Security Service, Immigration and Customs Enforcement, Customs and Border Protection, RTA Police, Ohio State Highway Patrol, Transportation Security Administration, Alcohol, Tobacco and Firearms, Shaker Heights Police Department, North Olmstead Police Department, US Postal Inspectors, and the Defense Criminal Investigative Service.   Assistance in this case was also provided by the U.S. National Park Service Park Rangers, Sagamore Hills Police Department and Brecksville Police Department, and the Summit County Sheriff’s Office.  

A Cleveland man was sentenced to 12 years in prison for leading a ring that obtained blank  prescription pads that were used to fraudulently obtain thousands of prescription painkiller pills, law enforcement officials announced today.

Louis Eppinger, 53, led a conspiracy that forged prescriptions for Oxycontin and Percocet pills, hired people to have them filled at pharmacies throughout the region, then sold the pills on the street, according to court documents. He previously pleaded guilty to conspiracy to possess with intent to distribute Oxycodone, health care fraud and aggravated identity theft.

“We have seen a huge increase in prescription drug abuse in Ohio, and this case demonstrates the lengths people will go to defraud and profit from pills,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “Instead of dealers shipping in drugs from South America, we now have people forging prescriptions.”

“The abuse of illicitly obtained prescription drugs is reaching epidemic proportions, surpassing that of marijuana, cocaine and heroin combined,” said Stephen Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “Dismantling illicit drug diversion networks such as the organization charged in this investigation will remain a top FBI priority.”

Besides Eppinger, six other people have pleaded guilty to related crimes. They are: Patricia Arnold, age 61, of Cleveland; Anthony H. Perry, age 42, of East Cleveland; Elizabeth A. Davis, age 40, of East Cleveland; James Byrge, age 62, of Cleveland; Judy Burrows, age 25, of Cleveland, and Brittany N. Glass, age 22, of Cleveland.

Between 2011 and 2012, Eppinger, Arnold, Glass, Perry, Davis, Burrows and Byrge engaged in a conspiracy to possess with intent to distribute oxycodone, according to court documents.

Eppinger obtained blank prescription paper from an unknown source and DEA numbers of various physicians located in Northern Ohio for the purposes of passing fraudulent prescriptions for Oxycontin and/or Percocet, both of which contain oxycodone, according to court documents.

Eppinger provided the blank prescription paper to Arnold, who forged the prescriptions. Eppinger then provided the fraudulent prescriptions to Glass, Perry and Davis, who served as “walkers” and attempted to pass the prescriptions at pharmacies in Northeast Ohio, including several in Cleveland as well as locations in Shaker Heights, Willoughby and Garfield Heights, according to court documents.

Glass, Perry and Davis then gave the pills to Eppinger, who paid them for passing the fraudulent prescriptions. Eppinger then sold the pills or provided them on consignment to Burrows, Burge and others, according to court documents.

Eppinger pleaded guilty to health care fraud for defrauding the Ohio Medicaid program by billing more $21,098 for prescription painkillers to which he was not entitled, according to the indictment. He was ordered to repay that amount in restitution.

Eppinger also used the identities of two people in relation to a felony, resulting the in the aggravated identity theft convictions.

The case is being handled by Assistant United States Attorneys Michael L. Collyer and Michelle M. Baeppler following investigation by the FBI’s Cleveland office, with assistance from the Cleveland Police Department, West Shore Enforcement Bureau, Ohio High Intensity Drug Trafficking Area and Ohio Attorney General’s Office.           

A one-count federal information was filed against two people accused of taking part in a mortgage fraud scheme involving six luxury properties located in Medina, Ohio, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today.

The lenders lost a total of approximately $3,327,333 as a result of the scheme, according to the information.  The information charges one count of conspiracy to commit bank fraud and wire fraud in a mortgage fraud scheme.

Those charged are:  Joseph J. Beccia, age 60, of Parma; and, Alex F. Blackmore, age 49 of Bronx, New York. 

The information charges that from in or around May 2006 through on or about June 20, 2007, Beccia and his company, Horizon Construction, built six luxury properties in Medina. 

Although some of the properties were not fully completed, Beccia listed five of the six properties for sale at purchase prices that were equal to the true-market value of each property, starting on or about May 13, 2005.  Specifically, Beccia listed the five properties for sale as follows:  2940 Sutton Lane, Medina for $599,000, on or about August 30, 2006; 4281 Fox Glen Drive, Medina for $395,000, on or about May 13, 2005; 4320 Perian Court, Medina for $399,000, on or about November 9, 2005; 3006 Sutton Lane, Medina for $529,500, on or about August 30, 2006; and, 4740 Lake Forest Trial, Medina for $925,000, on or about August 30, 2006. 

Beccia incurred the cost of the construction of these homes without having known purchasers for these properties.  Beccia was not able to sell these properties for an extended period of time and began to experience financial difficulties, according to the information.

Joseph Jones, an individual previously convicted in another mortgage fraud scheme, met Beccia through T.F., a real estate agent working in the area.  T.F. advised Beccia that Jones had a system by which Jones could sell these properties so that Beccia could pay off his debts on the properties.

The information charges further that Jones and T.F. explained to Beccia that Jones had individuals willing to have properties purchase in their names.  Jones and T.F., also, advised Beccia that in order to make Jones’ system work the properties would need to be removed from the market and re-listed at significantly higher purchase prices.  Finally, Jones and T.F. advised Beccia that they would handle the interactions with the loan officers and securing the mortgage loans.  All Beccia had to do was participate in the sale of the properties at the significantly inflated purchase prices and sign off on the loan documents as the seller, which Beccia agreed to do.

The information also charges that Beccia advised Jones and T.F. the amount of money he required from the sale of each the properties in order for him to repay the amounts he had borrowed to construct the luxury homes.  Then, Jones determined the additional amount of money he wanted to receive over and above the amount of money required to be distributed to Beccia after the sale of each of the properties.  Beccia and T.F. prepared new purchase agreements for each of the six properties with the inflated purchase price necessary to satisfy the amounts of money required.

Jones enlisted Blackmore to be a straw buyer/investor of some of Beccia’s properties.  Jones advised Blackmore that if he would agree to allow these luxury homes to be purchased in his name, he would not have to provide any down payment funds because Jones would provide the down payment funds, and Jones would provide Blackmore with a significant amount of cash back after the closing of each property for allowing his name to be used as the purchaser. In addition, Blackmore signed the loan documents containing false information in order for him to qualify to purchase the properties, according to the information.

The information charges that T.F. re-listed five of the six properties for sale at the inflated purchase prices determined by Beccia and Jones as follows:  2940 Sutton Lane, Medina from $599,000 to $950,000; 4281 Fox Glen Drive, Medina from $395,000 to $647,000; 4320 Perian Court, Medina from $399,000 to $650,000; 3006 Sutton Lane, Medina from $529,500 to $920,000; and, 4740 Lake Forest Trial, Medina from $925,000 to $1,400,000.

Finally, the information charges that Jones enlisted the services of Marilyn Mannarino, an individual previously convicted in another mortgage fraud scheme, and Tower City on all six of Beccia’s properties.  Tower City prepared the HUD-1s to make it appear to the financial institutions and mortgage lenders that Blackmore provided the down payments from his own personal funds, when in fact Jones provided the down payments.  Beccia and Blackmore signed the HUD-1s knowing that Blackmore had not provided the down payments from his own personal funds.

Each of the properties for which defendants secured a mortgage loan went into foreclosure, resulting in a total loss of approximately $3,327,333, with Flagstar Bank incurring a loss of approximately $1,053,000, Lehman Brothers Bank incurring a loss of approximately $752,500, J.P. Morgan Chase incurring a loss of approximately $422,000, Suntrust Mortgage, Inc. incurring a loss of approximately $420,833, and American Brokers Conduit, a division of American Home Mortgage, Inc. incurring a loss of approximately $679,000.    

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

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

Two officials with Dart Trucking were found guilty of bank fraud charges related to a $3.6 million check-kiting scheme against Huntington Bank, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Timothy Kephart, 54, of Morrisdale, Penn, the chief executive officer of Dart Trucking, and Mark Michael, age 55, of Clearfield, Penn., the chief financial officer of Dart Trucking, were both found guilty of one count of conspiracy to commit bank fraud and one count of bank fraud.

The men are scheduled to be sentenced by U.S. District Judge Dan Aaron Polster on September 4, 2013.

Kephart and Michael were charged with kiting checks, in conspiracy with Lee Stoneburner, the president of Dart Trucking, from October 2007 until February 2010, from various accounts of Dart Trucking at Huntington Bank, in Columbiana, Ohio. 

Stoneburner, 44, from the Columbiana, Ohio area, previously pleaded guilty to conspiring to commit bank fraud and is awaiting sentencing. 

A check kiting scheme involves writing a series of worthless, non-sufficient funds (NSF) checks where a NSF check from one bank account was deposited into another account; another NSF check would then be written to cover the previous NSF check, concealing the overdraft from the bank, such that a false balance, or “float,” was created in the accounts.  The defendants would then use that falsely created “float” to pay their bills, expenses, and to pay their salaries. 

The evidence at trial established that it was a complicated, daily task to compute the amount of NSF checks which had to be written and to track what accounts had to be “covered” and from which accounts a NSF check could be written to cover a particular account.  These officers involved their clerical staff in tracking and covering these checks.  The use of “controlled disbursement accounts” or “CDA’s,” which allowed the company an extra day to post its expenses before they paid them, gave the company a float it could draw upon over the course of this scheme.

This case was prosecuted by Assistant United States Attorney Christian H. Stickan and Assistant United States Attorney Perry D. Mastrocola, following an investigation by the Federal Bureau of Investigation, Youngstown, Ohio.

Seven people were indicted in federal court for their roles in a conspiracy to steal copper from two dozen substations in Northeast Ohio owned by First Energy or Cleveland Public Power, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.

“These defendants risked the safety of utility workers and the well-being of people served by these substations,” Dettelbach said. “The theft of copper and other scrap metal is a serious problem in our region, and the targeting of energy facilities additionally poses a significant threat to our national security infrastructure.”

“The potential of harm posed by these individuals to enrich themselves while risking lives and posing serious threats to our community will not be tolerated.  The FBI and our law enforcement partners will aggressively pursue and bring to justice those individuals who place our community in harm’s way.”  

Indicted are: Christopher M. Butts, 26, of Cleveland; Michael T. Butts, 33, of Brooklyn; Jon T. Lefort, 25, of Cleveland; William Bertini, 25, of Olmsted Township; Jason B. Kauffman, 34, address unknown; Keven Wenson, 22, of Lakewood, and Julio Torres, 45, address unknown.

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

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

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

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

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

The defendants collectively sold the stolen copper for more than $15,000, although repairs to the substations will likely cost more than $100,000, according to the indictment.

Count 1 charges all seven defendants with conspiracy to damage energy facilities. Counts 2 through 6 charge specific individuals with destruction of an energy facility, in violation of a federal statute specifically directed at protecting facilities that produce, distribute and store energy, such as electrical substations.

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

If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, the defendant’s role in the offenses and the characteristics of the violation.

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

Three people from Cleveland were named in a seven-count indictment for their roles in an armed robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Eric Gooch, age 22, Larnell A. Tripp, Jr., age 24, and Ashley N. White, were charged conspiracy to commit interference with commerce by robbery and possession of a firearm during a crime of violence.  Gooch was also charged with two separate counts of armed bank robbery and possessing a firearm during the bank robberies. 

Specifically, the indictment alleges that from December 2012 to January 21, 2013, Eric Gooch, Larnell Tripp, Jr., and Ashley White conspired to rob Roses Discount Store in Cleveland, Ohio.  The indictment further alleges that on January 21, 2013, they entered and robbed the Roses Discount Store, and during the robbery, a firearm was brandished.  The indictment further alleges that on February 22, 2013, Eric Gooch robbed the PNC Bank located at 16614 Harvard Avenue, Cleveland, Ohio, and on March 13, 2013 Gooch robbed the PNC Bank located at 2771 South Moreland Boulevard, Cleveland, Ohio.  The indictment further alleges that a firearm was brandished during each bank robbery.

The indictment resulted from an investigation conducted by the City of Cleveland, Division of Police, and the Federal Bureau of Investigation.

The case is being prosecuted by Assistant United States Attorneys Michelle M. Baeppler and M. Kendra Klump. 

If convicted, each defendant’s sentence will be determined by the court after review of factors unique to each case, including the defendants’ prior criminal records, if any, the defendants’ roles 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.

A North Ridgeville man was sentenced to more than 17 years in prison after previously pleading guilty to one count of distribution of visual depictions of minors engaging in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

William Wilson, 73, was sentenced to 210 months in prison by U.S. District Judge Donald Nugent.

This case was being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the Federal Bureau of Investigation.

A man and woman from Lorain County were indicted for human trafficking and drug offenses after forcing a 16-year-old girl and 19-year-old woman to have sex for money, law enforcement officials said.

Jeremy Mack, 37, of Elyria, and Ashley Onysko, 23, of Avon Lake, were each indicted on one count of conspiracy to engage in sex trafficking and drug trafficking and two counts of sex trafficking.

“This pair forced people, including a minor, 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.”

“Jeremy Mack and Ashley Onysko 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.

Count 1 charges that between December 2012 and April 9, 2013, Mack and Onysko conspired together to provide heroin to Victim 1 and cocaine to Victim 2 and then, after the victims incurred drug debts, used force, threats of force, fraud and coercion to compel them to engage in commercial sex acts.

They did this, in part, by posting photographs of Victim 1 and Victim 2 on backpage.com on a user account that Mack and Onysko created on Dec. 25, 2012, according to the indictment.

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

From March through April 9, 2013, Mack brandished a firearm in front of Victim 1 and Victim 2, according to the indictment.

Count 2 charges that from February through April 9, 2013, Mack and Onysko caused Victim 1 to engage in commercial sex acts by using force, threats of force, fraud and coercion.

Count 3 charges that from March through April 9, 2013, Mack and Onysko caused Victim 2 to engage in commercial sex acts by using force, threats of force, fraud and coercion.

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.

An indictment is merely a charge.  All defendants are presumed innocent of the charges until proven guilty beyond a reasonable doubt in court. 

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

Ziyaya Mtola, 39, was indicted on one cout of failure to depart the United States. The indictment alleges that Mtola is an alien and a citizen of the Republic of South Africa who physically resisted efforts to remove him from the United States pursuant to an order of removal on April 22, 2013.

In an unrelated case, Eleazar Ivan Carrillo-Vasquez aka Eduardo Ramirez-Lopez, 28, was charged with illegally reentering the United States following his deportation. The indictment alleges that Carillo-Vasquez is an alien who was previously removed or deported from the United States to Mexico on October 28, 2008, and April 22, 2009.

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 cases are being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigations by agents of the Enforcement and Removal Operations of the Immigration and Customs Enforcement Agency.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a two-count indictment charging Christopher Kelley, age 30, of Lakewood, Ohio, with one count of passing counterfeit obligations and one count of possessing counterfeit obligations.

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 case is being prosecuted by Assistant United States Attorney Margaret A. Sweeney following an investigation by the United States Secret Service and the Ohio Bureau of Criminal Investigation, Ohio Casino Control Commission.

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

A Canton man with a prior murder conviction was faces federal firearms charges after authorities found him with six firearms, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Torrey T. Gross, age 39,was indicted on one count of being a felon in possession of a firearm. 

"It is profoundly troubling that a man with this criminal backgroud was able to get his hands on these fireams," Dettelbach said. "We will continue to use all the tools at our disposal to keep firearms from those who are forbidden from possessing them."

Gross was arrested on April 17, 2013, by Metro Narcotics, FBI Safe Streets Task Force and the Canton Police Department SWAT team during an execution of a Stark County Common Pleas Court Search Warrant.  The search warrant yielded an S.K.S. semiautomtic rifle, a Ruger SR40C pistol, a Smith & Wesson Bodyguard 380 pistol, a Glock 17 pistol, a Glock 21, .45-caliber pistol, a Smith & Wesson, model 22A-1 .22-caliber pistol and various ammunition, according to the indictment.    

Gross is forbidden from possessing firearms or ammunition because of a 1997 conviction for muder in Oakland County, Michigan, according to the indictment.

If convicted, Gross’ 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 a Youngstown man with making threats against the President and First Lady of the United States, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio,. 

Frederick Watt, age 33 is accused of making the threats by telephone to Trumbull County 911 operators in Warren, Ohio on March 24, 2013.

If convicted, Watts’ 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 Nancy Kelley following an investigation by the United States Secret Service. 

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

A Strongsville company and the company owner’s wife pleaded guilty for their roles in the dumping of a drum of liquid cyanide into a storm drain that flowed into the Rocky River, resulting in the death of more than 30,000 fish, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Kennedy Mint, Inc. pleaded guilty to violating of the Clean Water Act.

Teresina Montorsi, 74, pleaded guilty to obstruction of justice.

“Clean, fresh water is Ohio’s greatest natural resource,” Dettelbach said. “We are satisfied that we were able to determine who put the cyanide into the river and killed tens of thousands of fish. The restitution from this case will be used to restock the river with fish, so that people can again enjoy the natural beauty of the Rocky River.”

“Our natural resources must be protected from illegal discharges,” said Randall K. Ashe, Special Agent in Charge of U.S. EPA’s criminal enforcement program in Ohio. “This prosecution sends a clear message that crimes against the environment will not be tolerated and will be vigorously prosecuted.”

Ohio Attorney General Mike DeWine said: “Illegal dumping into Ohio sewers brings severe consequences, both for our environment and for perpetrators. We will continue to work with other agencies to bring justice to those who violate environmental laws and to protect Ohio’s valuable natural resources.”

Company owner Renato Montorsi was indicted last year, but those charges were dismissed after he wasfound to be incompetent to stand trial.

Renato and Teresina Montorsi are married and live in Grafton, Ohio, according to public records.
Kennedy Mint will pay restitution of $30,893 -- $1 for every fish killed by the illegal discharge. The money will be paid to the Ohio Department of Natural Resources and used to restock the river with steelhead trout under the terms of the plea agreement.

Kennedy Mint will also make a payment to the Cleveland Metroparks. The amount will be determined at sentencing, which is scheduled for Aug. 29.

Renato Montorsi owned and operated Kennedy Mint, which is located in Strongsville. Kennedy Mint specializes in collectible coins, but previously conducted metal plating and printing operations. The East Branch of the Rocky River is near the Kennedy Mint facility and storm water from that location’s parking lot flows into the East Branch of the Rocky River, according to court documents.

On April 16, 2012, Montorsi, with assistance from an employee, put two drums into a dumpster outside Kennedy Mint. On April 17, the waste hauling company declined to dispose of the contents of the dumpster because of the two drums inside, according to court documents.

On April 18, Montorsi moved the drums from the dumpster and placed them next to the storm drain in the Kennedy Mint parking lot, according to court documents.

Later that day, Montorsi used a hammer and sharp metal tool to punch a hole near the bottom of a drum that included a poison label featuring a skull and cross bones. After punching the hole, liquid cyanide in the drum was discharged into the storm drain and eventually the East Branch of the Rocky River, according to court documents.

Around April 22, the Ohio Department of Natural Resources received reports of dead fish in the East Branch of the Rocky River. Nearly every fish was dead downstream for the next three miles, according to the court documents.

The Ohio DNR counted approximately 30,893 dead fish in that three-mile stretch of the river, due to the discharge of cyanide, according to court documents.

On April 25, personnel from the Ohio Environmental Protection Agency asked to enter the Kennedy Mint facility to look for the drums, which they did not locate. After they left, Renato Montorsi, with help from Teresina Montorsi, moved two drums from Kennedy Mint to their residence so they would not be discovered if investigators returned, according to court documents.

On June 22, Teresina Montorsi gave permission to U.S. EPA agents to search their home without a warrant, at which point the agents found the punctured drum and another drum that contained cyanide, according to court documents.

This case is being prosecuted by Special Assistant U.S Attorney Brad J. Beeson following an investigation by the following agencies: United States Environmental Protection Agency, Criminal Investigation Division; Ohio Bureau of Criminal Identification and Investigation; the Northeast Ohio Regional Sewer District; the Ohio Environmental Protection Agency, Office of Special Investigations; the Ohio Department of Natural Resources, Division of Wildlife, and the Cleveland Metroparks Rangers, all members of the Northeast Ohio Environmental Crimes Task Force.

People can report possible environmental violations to Ohio EPA at 800-282-9378 or U.S. EPA at www.epa.gov/tips

A crimininal information was filed charging Tyrone Nix, 22, of Detroit, with illegal possessing and using counterfeit debit cards, 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 review of factors unique to each 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 Secret Service. The case is being handled by Assistant United States Attorney Thomas A. Karol.

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 Cleveland man was indicted for robbing a bank in Middleburg Heights, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges Marc S. Easton, 44, robbed a Key Bank located in Middleburg Heights, Ohio, and stole approximately $10,997.15 from the bank.

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

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

Brandon Mace was sentenced to more than six years in prison for claiming false income tax refunds totaling nearly $5.5 million, said Steven M. Dettelbach, United States Attorney.   

Mace filed the false claims while incarcerated on state charges.

Mace pleaded guilty to the charges on February 27, 2013, before United States District Judge Patricia A. Gaughan, who imposed today’s sentence.  The two-count indictment against Mace charged that he prepared and filed false income tax returns for the years 2008 and 2009 claiming false tax refunds in the amounts of $207,000 and $5,292,000, respectively.

Mace, a 35-year old resident of Canton, Ohio, has been in pretrial detention since his arrest on these charges on November 20, 2012, according to court records. 

Mace requested a non-prison sentence on a number of grounds, including his claim that he knew he would never receive any of the requested refunds.  According to court documents and proceedings, however, the government mailed the requested 2008 refund check to Mace at a Post Office box, where he planned to retrieve it upon his scheduled release from state custody in late 2009.  He did not succeed in getting the check because the Post Office returned it to the government before he could get there.  The government did not issue the 2009 refund check, although Mace made efforts to obtain it beyond filing his false return.  After the IRS sent Mace correspondence requesting an explanation for his lack of a supporting W-2 form, Mace replied by sending a hand-written letter containing a false excuse. 

In announcing the prison sentence, Judge Gaughan cited to Mace’s extensive criminal record as a significant factor.

The case was prosecuted by Special Assistant United States Attorney Perry D. Mastrocola and Assistant United States Attorney John M. Siegel, following an investigation by the Internal Revenue Service -- Criminal Investigation.