Northern District of Ohio

A federal grand jury returned an indictment charging Ernest Gaines, of Akron, with four counts related to the distribution of heroin and illegally having a firearm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Gaines, 45, was charged with with one count of possession with intent to distribute 100 grams or more of heroin, one count of using and maintaining a premises for the purpose of manufacturing and distributing heroin, one count of being a felon in possession of firearms and ammunition, and one count of conspiracy to distribute and to possess with the intent to distribute heroin.

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

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

The investigation preceding the indictment was conducted by the Drug Enforcement Administration, the Akron Police Department Street Narcotics Uniformed Detail, and the Summit County High Intensity Drug Trafficking Area initiative. The case is being prosecuted by Assistant United States Attorney Samuel A. Yannucci.

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

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

Joshua Burgess, age 21, of Niles, Ohio, was charged with one count of being a felon in possession of a firearm and ammunition.

The indictment charges that on or about October 28, 2012, Burgess possessed a Rossi, .22 caliber revolver and ammunition, after he had been previously convicted of burglary in the Trumbull County, Ohio, Court of Common Pleas.

Donte Butcher, age 24, of Ravenna, Ohio, was charged with being a felon in possession of firearms and ammunition.

The indictment charges that on or about June 12, 2012, Butcher possessed a Cobra Enterprises, model FS380, .380 caliber semi-automatic pistol, a Glock, model 23, .40 caliber semi-automatic pistol, and ammunition, after he had been previously convicted of felonious assault in the Portage County, Ohio, Court of Common Pleas.

Harold Travis, age 44, of Warren, Ohio, was charged with one count each of being a felon in possession of firearms and ammunition and possession with the intent to distribute heroin.

The indictment charges that on or about June 18, 2012, Travis possessed a Glock, Model 19, 9mm pistol, a Remington, Model 870, 12 gauge shotgun, four rounds of Remington 9mm ammunition; five rounds of Winchester 9mm ammunition; two rounds of Remington 12 gauge ammunition and two rounds of Winchester 12 gauge ammunition. This came after he had been previously convicted of robbery and possession with intent to distribute cocaine in the Michigan Third Judicial Circuit Court, and with being a felon in possession of a firearm, in the U.S. District Court, Northern District of Ohio.

The indictment further charges that on or about June 18, 2012, Travis possessed with the intent to distribute approximately 14.9 grams of heroin.

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

The investigations preceding the indictments were conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives - Youngstown Field Office, the Austintown Police Department, the Ravenna Police Department and the United States Marshal Service’s Violent Fugitive Task Force. The matters are being prosecuted by Assistant United States Attorney David M. Toepfer.

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

A federal grand jury returned an 11-count indictment charging William T. Koch, age 23, of Columbia Station, Ohio, with producing and pandering child pornography, extortion and identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges from on or about December 19, 2010 through on or about September 18, 2012, Koch attempted to coerce four different minors to engage in sexually explicit conduct, for the purpose of producing visual depictions of such conduct; knowing and having reason to know that such visual depictions would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce.

The indictment further charges or about September 9, 2012, Koch used, persuaded, induced, enticed and coerced a fifth minor to engage in sexually explicit conduct for the purpose of transmitting a live visual depiction of such conduct, knowing and having reason to know that such visual depiction would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce.

The indictment further charges on or about September 9, 2012, Koch attempted to coerce that same minor to engage in sexually explicit conduct with his ten-year-old brother, for the purpose of transmitting a live visual depiction of such conduct, knowing and having reason to know that such visual depiction would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce.

The indictment further charges or about September 9, 2012, Koch distributed, in and affecting interstate and foreign commerce, by computer, any material in a manner that reflected the belief and was intended to cause another to believe that the material was a visual depiction of an actual minor engaging in sexually explicit conduct.

The indictment further charges from or about September 9, 2012 through on or about September 18, 2012, Koch with the intent to extort a thing of value from three of the aforementioned minors, transmitted in interstate and foreign commerce, communications threatening to injure the reputations of said minors.
The indictment further charges that from on or about December 19, 2010, through on or about September 13, 2012, Koch knowingly used, without lawful authority, in and affecting interstate and foreign commerce, a means of identification of another person, with the intent to commit, and in connection with, three of the offenses charged in the indictment.

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

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

The case was investigated by the Federal Bureau of Investigation and the Department of Homeland Security, Homeland Security Investigations.

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

A federal grand jury returned a six-count indictment charging Robert E. Campbell, Jr., age 31, of Akron, Ohio, with three bank robberies in the Summit County area, one count of being a felon in possession of a firearm and ammunition, one count of carjacking, and one count of brandishing a firearm during the commission of a violent crime, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Campbell is accused of robbing the Charter One Bank on East Waterloo Road, the First Merit Bank on Wedgewood Drive and the US Bank on Manchester Road, all within a three-day period.

With the assistance of the Akron Police Department, Campbell was identified through bank surveillance photos. When located, Campbell carjacked a vehicle at gunpoint and led Summit County Sheriff’s Deputies on a slow-speed chase through the Kenmore area which resulted in him striking two vehicles, which resulted in injuries to some occupants. Campbell was then apprehended by Summit County Sheriff’s Deputies.

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

The case is being prosecuted by Assistant U.S. Attorney Teresa Dirksen following an investigation by the Akron Police Department, Federal Bureau of Investigation, U.S. Marshal’s Service, Bureau of Alcohol, Tobacco and Firearms and Summit County Sheriff’s Office.

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

Local businessman A. Eddy Zai was sentenced to more than seven years in prison and ordered to forfeit more than $23 million after he previously pleaded guilty to nine counts related to his participation in a fraud against St. Paul Croatian Federal Credit Union, law enforcement officials said.

“Mr. Zai held himself out to the community as a successful entrepreneur, when in reality he was part of a conspiracy that resulted in one of the largest credit union collapses in history,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

“Eddy Zai’s sentence and restitution amount reflect his extensive involvement in bribing loan officials, submitting false documentation and obtaining millions of dollars in loans for numerous non-operational businesses managed by him,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue to seek justice for victims of the SPCFCU collapse and any other financial fraud scheme where trust and faith have been unwittingly placed.”

Darryl Williams, Special Agent in Charge of the Internal Revenue Service-Criminal Investigations’ Cincinnati Office, said: “Honest and law abiding citizens are fed up with those who use deceit and fraud to line their pockets with other people’s money.  Let these convictions stand as a warning to those who victimize the public that whether you are the main perpetrator of a fraud, or merely assist in its facilitation, the law will hold all guilty parties accountable." 

Zai, 44, of Pepper Pike, pleaded guilty last year to one count of conspiracy to commit bank fraud and bank bribery, two counts of bank fraud, three counts of money laundering, one count of bribery and two counts of making false statements of financial institutions.

U.S. District Judge John Adams sentenced Zai to 87 months in prison, followed by five years of supervised release, and ordered him to pay more than $23 million in restitution.

Zai conspired with others, including Anthony Raguz, the former Chief Operating Officer of the St. Paul Croatian Federal Credit Union (SPCFCU), to submit false loan documents to the credit union, defraud the credit union of approximately $16.7 million, and pay bribes and kickbacks to Raguz for using his position at the credit union to approve numerous loans to Zai and the entities and nominee companies he controlled, according to court documents.

The conduct took place from December 2003 through March 2010, according to court documents.
SPCFCU, located in Eastlake, was placed into conservatorship by the National Credit Union Administration on April 23, 2010. One week later, the NCUA liquidated SPFCFU and discontinued its operations after determining the credit union was insolvent. At that time, SPCFCU served about 5,400 members and was believed to have assets of approximated $239 million.

At the time, Zai owned, operated and controlled The Cleveland Group, LLC (aka the Cleveland Group of Companies) and its many related entities, which included: Cleveland Flooring & Designs, Ltd.; Alpina, Inc.; Cleveland Development Group, LLC; The Cleveland Group, Environmental, LLC; Cleveland Real Estate Group, Inc.; The Cleveland Group Real Estate Division; The Cleveland Group, Excavating Division; Cleveland Management Group, Inc.; The Cleveland Group, Construction Division; The Cleveland Group, Consulting Division; The Cleveland Group, Ltd.; 417, Ltd.; 417 Limited; and Sutton Park, Ltd.
Certain of these entities were created primarily to operate as a “safe haven” for credit union proceeds, while others performed little or no legitimate business despite having loan proceeds intented for Zai’s “business” ventures, according to court documents.

Zai engaged in a scheme to defraud the credit union by, among other things, submitting loan documents for and receiving loan proceeds on behalf of  companies that ceased operations. He continued to seek and obtain loan proceeds in the name of non-operating entities even after he directed that no loan payments be made to the credit union. This scheme to defraud the credit union resulted in an approximately $13.7 million loss, according to court documents.

Zai submitted numerous false loan documents to the credit union between March 2008 and July 2009 in order to influence the credit union’s decision to approve loans to the companies he controlled.
Zai gave Raguz numerous cash payments, usually in the form of $100 bills concealed in envelopes and hand-delivered to Raguz at the credit union’s offices, and totaling more than approximately $5,000. The payments were made to both induce Raguz to approve additional fraudulent loan applications and to reward Raguz for having previously approved false loan applications, according to court documents.   

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

Four Canton men were sentenced to prison this week for their involvement in a drug-trafficking ring in which cocaine, heroin and crack cocaine was brought into Stark County and distributed by members of the Rated R street gang, 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’ Cleveland office.

Jasmine Watkins, 29, was sentenced to 20 years in prison.

Virgil Hill, 26, was sentenced to 20 years in prison.

Cordrick Owens, 32, was sentenced to 12 years, 7 months in prison.

Jerry Gordon, 25, was sentenced to 10 years in prison.

All four previously pleaded guilty to conspiracy to distribute controlled substances (cocaine, crack cocaine and heroin). Watkins also pleaded guilty to being a felon in possession of a firearm, for which he was sentenced to 10 years in prison, to be served concurrently to his 20-year sentence.

“This group is well known to law enforcement for causing serious trouble throughout Canton,” Dettelbach said. “These prison sentences will eliminate some of the worst of the worst offenders in Stark County.”

Anthony said: “These four sentences wrap up another phase of law enforcements efforts to dismantle drug trafficking groups in our area. The FBI will continue to work side by side with our law enforcement partners to make Canton neighborhoods a safer place to live.”

Watkins provided Gordon with shipments of drugs at a home in Columbus and then Gordon and others moved the drugs to a stash house he controlled on Sol Beck NE in Canton. Once there, Gordon distributed the drugs to local dealers, according to court documents.

Hill was identified in court documents as the leader of "Rated R." He and others made large purchases of cocaine from Gordon, according to court documents.

Seventeen people have now been sentenced to prison in this case. They are:

Travis Grant: 10 years, 1 month.

Timothy Bertram: 4 years, 9 months.

Oscar Todd: 10 years, 5 months.

Edward Turpin IV: 10 years.

Perez Antwan Williams: 5 years.

Demond Hill: 10 years, 2 months.

Bennie Woodson: 6 years, 10 months.

Ronald D. Hill: 6 years, 10 months.

John L. Hill: 3 years, 1 month.

Barry Giamourdes: 4 years, 3 months.

Brandon Jones: 10 years.

Lavanya Mayle: 5 years.

Brian Brown: 6 years.

Five others were indicted on federal charges last month for their role in the conspiracy.

This case was being prosecuted by Assistant U.S. Attorneys Linda H. Barr and Vasile C. Katsaros following an investigation by the FBI’s Safe Streets Task Force, which is comprised of the FBI, Canton Police Department, Alliance Police Department, Ohio Adult Parole Authority, Stark County Sheriff’s Office, Massillon Police Department and Perry Police Department.

Four men were sentenced to prison for their roles in a conspiracy that trafficked in stolen vehicles, backhoes, steel, scrap metal and other objects through a chop shop and a scrap-metal yard in Cleveland, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.

Lindsey Blackmon, 48, of Cleveland, was sentenced to nearly five years (57 months) in prison by U.S. District Judge John Adams.

Nayyir Mahdi, aka “Willie Jones,” 42, of Shaker Heights, was sentenced to four years in prison and ordered to pay $22,184 in restitution.

Curtis Wilder, 43, of Bedford Heights, was sentenced to three years in prison and ordered to pay $346,845 in restitution.

Gilbert Evans, 48, of Cleveland, was sentenced to 16 months in prison.

Mark Brown, 46, of Cleveland, was sentenced to one day in jail followed by eight months of home confinement.

Davies Pierce, of Cleveland, is scheduled to be sentenced next month.

“These defendants ended up with semi-trucks or pickups that were stolen from parking lots and other places,” Dettelbach said. “This conspiracy included thefts in Warrensville Heights, Willoughby, Mentor, Euclid, Elyria and a slew of other locations.”

“Stealing and selling stolen vehicles and cargo comes with a price of incarceration,” Anthony said. “The FBI and our Organized Crime Task Force partners will continue our efforts to detect and dismantle these illegal enterprises which negatively impact our economy and our citizens.”

Mahdi operated Express Metals on East 152nd Street and, before that, at 14915 Woodworth Ave., both in Cleveland, and was in the business of selling scrapped metal. Blackmon obtained a location at 19210 Miles Road, Warrensville Heights, Ohio, to be used as a chop shop. Pierce owned and operated Duffy’s Towing at 7810 Colfax Road and salvaged autos for scrap metal, according to court documents.

Wilder, John Jones and others broke into and stole motor vehicles throughout Northeast Ohio. Between June 2011 and March 2012, they brought the stolen vehicles to Brown, Pierce and Mahdi. The Vehicle Identification Numbers (VIN) were then removed from the vehicles, parts were stripped from the vehicle and sold, and the rest of the vehicles were crushed and sold for scrap, according to court documents.
Some of the co-conspirators brought stolen vehicles to Brown, who stripped the autos of parts, including rims and catalytic converters, before towing the vehicles to Pierce’s shop on Colfax Road, where they were destroyed and scrapped, according to court documents.

Blackmon and others would spot and steal loads of cargo after truck drivers parked their rigs. The tractor, trailer and loads of cargo were then brought to Express Metals, operated by Mahdi, and to Pierce’s scrap yard, where the stolen cargo was broken down, according to court documents.

On March 4, 2012, Blackmon, Evans, Brown and others possessed a shipment of steel coils worth about $120,000 that were stolen from a Ramada Inn in Elyria. The steel was being shipped to Michigan from Twinsburg, Ohio, according to court documents.

One month earlier, Blackmon, Pierce, Brown and others, possessed steel beams worth $18,700, a 2007 Kenworth semi-truck and a 2005 Eagle flatbed which had been stolen in the vicinity of Streetsboro, Ohio, while being used in interstate commerce between Twinsburg, Ohio and Virginia, according to court documents.

Nine others were indicted on related charges in state court.

This case is being handled by Assistant United States Attorney Robert E. Bulford following an investigation by the FBI’s Organized Crime Task Force, which includes the FBI, Ohio State Highway Patrol, U.S. Customs and Border Protection and the Cleveland Division of Police.

A grand jury returned a four-count indictment charging two men with crimes related to their possession of approximately 55 fraudulently obtained credit cards that they used to purchase more than $5,000 worth of merchandise from various merchants at Beachwood Place and Golden Gate, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

“These men are accused of going on a shopping spree with fake credit cards,” Dettelbach said. “We all pay the price when people engage in theft like this, and this office will work with our partners to stamp out credit-card fraud.”

James Gibson of Orlando, Florida, and Lansford Beuns of Newport News, Virginia, were indicted on counts of (1) conspiracy to commit access device fraud; (2) use of unauthorized access devices; (3) possession of 15 or more counterfeit access devices and (4) possession of device-making equipment.

The indictment charges that in December 2012, Gibson and Beuns possessed approximately 55 counterfeit access devices (credit cards) upon which fraudulently acquired account information had been re-encoded and embossed using an encoder and an embosser in their possession.

The indictment further charges that Gibson and Beuns used the counterfeit access devices and unauthorized access devices to purchase thousands of dollars of merchandise from various merchants in Beachwood and Mayfield Heights, Ohio.

Among the purchases identified in the indictment, which all took place on Dec. 1 or Dec. 2, 2012, are:

* Abercrombie and Fitch, 26300 Cedar Road, $258.

* The Buckle, 26300 Cedar Road, $336.

* Saks Fifth Avenue, 26300 Cedar Road, $1,729.

* True Religion Jeans, 26300 Cedar Road, $623.

* Best Buy, 1417 Golden Gate Boulevard, $3,027.

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 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.

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 R. Hinz was sentenced to nine years in prison and ordered to pay more than $500,000 in restitution for his role in leading separate tax and mortgage fraud conspiracies, said Assistant Attorney General of the Justice Department’s Tax Division Kathryn Keneally, United States Attorney for the Northern District of Ohio Steven M. Dettelbach, and Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, Darryl K. Williams. 

U.S. District Judge Patricia Gaughan ordered Hinz to pay $458,302 in restitution to Wells Fargo Bank, $50,069 to the IRS and $36,211 to the Department of Housing and Urban Development.

Hinz pleaded guilty last year to one count of conspiracy to defraud the United States, one count of making a false 2008 income tax return, fifteen counts of aiding and assisting the preparation of false income tax returns, and one count of conspiracy to commit bank fraud involving a mortgage fraud scheme. 

The other three defendants charged in case – Heather L. English, Patricia A. Polk, and William E. Phillips, III – have also pleaded guilty.

All four defendants were indicted in December 2011 on the tax conspiracy and various false return charges.  Hinz was arrested in Miami, Florida, in January 2012 and Polk was arrested in Sarasota, Florida in February 2012.  Phillips was arrested in Los Angeles in June 2012, after being deported from the Philippines upon request of the U.S. government.     

According to court documents, Hinz promoted a scheme to defraud the United States by filing false federal income tax returns claiming large tax refunds using the so-called “OID process.”  The OID process involved the preparation of fictitious IRS Forms 1099-OID, Original Issue Discount, falsely reporting that financial institutions, creditors, and other entities had withheld large amounts of federal income tax on behalf of the defendants and other taxpayers, with respect to non-existent income.  Hinz and English recruited potential clients by promoting the OID scheme to investors in and employees of Hinz’s real estate business in Youngstown, Ohio, as well as to individuals they knew from organizations known at different times as NeoThink, NeoTech, and the Society of Secrets.  English prepared or directed the preparation of the 1099-OID forms and prepared and electronically filed the tax returns.  Based on these fictitious withholdings, at least 17 false tax returns for the year 2008 were filed with the IRS, claiming false refunds totaling over $3,000,000.  Under the scheme, taxpayers recruited by Hinz were to pay 20 percent of their refunds to Hinz and English, split equally between them, sometimes referred to as commissions and sometimes labeled as “donations.”

According to court documents, from approximately December 2006 through May 2009, Hinz conducted his real estate business in part through a scheme to defraud two federally-insured banks, Wells Fargo Bank and Huntington National Bank, that provided mortgage loans to the investors.  The scheme was carried out through the filing of false mechanic’s liens for work not actually done and the providing of undisclosed down payment assistance to the investors.  The scheme was designed to induce the banks to make mortgage loans based on false representations concerning the true price and value of the properties, the sources of down payments, and the disposition of loan proceeds.  Polk began conspiring with Hinz to conduct the scheme April 2008.

The case is being handled by Assistant U.S. Attorneys John M. Siegel and Henry F. DeBaggis and Tax Division Trial Attorney Robert C. Kennedy, following investigation by the Internal Revenue Service, Criminal Investigation, the Office of Investigations of the Department of Housing and Urban Development Office of Inspector General, and the Federal Bureau of Investigation.

A federal grand jury in Cleveland returned an indictment charging Walid Hanna, age 27, of Parma, Ohio, with trafficking in counterfeit merchandise, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges that on or about June 16, 2011, Hanna intentionally trafficked and attempted to traffic in goods, specifically counterfeit apparel, which, if genuine, would be valued at approximately $107,808, including: Gucci sweatshirts (9), belts (41) and shoes (30 pair); Ralph Lauren Polo shirts (193), fleece jackets (36) and caps (186); UGG boots (101 pair); New Era sports caps (656); and North Face jackets (43), which contained counterfeit marks, logos, labels, hang tags, patches, stickers, emblems, holograms and packaging.

The marks on the merchandise were identical to and substantially indistinguishable from marks used on genuine merchandise, and were in use and registered for such goods on the principle register of the United States Patent and Trademark Office. The indictment alleges that the use of such counterfeit and spurious marks was likely to cause confusion, mistake or to deceive.

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 Robert W. Kern of the Cleveland U.S. Attorney’s Office, following an investigation by the Cleveland Office of the Department of Homeland Security, Office Immigration and Customs Enforcement.

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

A federal grand jury in Cleveland returned an indictment charging Diana Geoffrion, age 55, of Cleveland, with six counts of wire fraud related to a $100,000 scheme involving a property in Willowick, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Geoffrion was employed by First American Exchange Company, LLC, in its Cleveland office from 2001 through January 2011. In February 2009, she executed a land contract on property at 722 East 305 Street, Willowick, Ohio, 44095, according to the indictment.

She then tried to fraudulently pay off the mortgage and note on the property with First American funds in late 2010, and embezzle and divert additional First American funds for her own benefit, according to the indictment.

Each of the six counts corresponds with a separate transaction, which totaled approximately $101,982.

The indictment results from an investigation conducted by the Federal Bureau of Investigation. The case was presented for indictment by Assistant United States Attorney James V. Moroney.

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

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

A federal grand jury sitting in Cleveland, returned a one-count indictment charging Donte Booker, age 45, of Cleveland Heights, Ohio, with a violation of federal narcotics law, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges Booker with the attempted possession with the intent to distribute over five kilograms of cocaine.

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

This case is being prosecuted by Assistant U.S. Attorney Edward F. Feran following an investigation by the Northern Ohio Law Enforcement Task Force (NOLETF) and the Cleveland Police Department.

The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Homeland Security Investigations, U.S. Coast Guard Investigative Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Strongsville Police Department, Westlake Police Department and Shaker Heights Police Department.

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

An Illinois man who played a role in one of the largest credit union collapses in American history was sentenced to two years in prison, United States Attorney Steven M. Dettelbach said.

Bujar Sejdic, 33, Ottawa, Illinois, was also ordered to repay $1.6 million in restitution by U.S. District Judge Christopher Boyko.

Sejdic pleaded guilty last year to financial institution fraud, giving gifts for procuring loans and three counts of money laundering related to his activities at St. Paul Croatian Federal Credit Union, located in Eastlake, Ohio.

The credit union closed in 2010, costing the National Credit Union Share Insurance Fund more than $170 million.

Between January 2004 through March 2010, Sejdic obtained 25 loans totalling more than $1.6 million from SPCFCU. These loans were made fraudulently, under false and fraudulent pretenses,  and many were made after Sejdic had already defaulted on previous loans, according to court documents.

He obtained these loans with the assistance of the credit union’s then-chief operating officer, Anthony Raguz. In return, Sejdic gave Raguz $40,000 in cash and one check, according to court documents.
Raguz is currently serving a 14-year prison sentence for his crimes related to the credit union’s collapse.
In 2009 and 2010, Sejdic wired $240,000 from his SPCFCU account to an account in Belgrade, Serbia, according to court documents.

As a result of Sejdic’s actions, SPCFCU and the National Credit Union Association lost more than $1.6 million, according to court documents.

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

A former employee of the United States Postal Service pleaded guilty to fraudulently collecting approximately $265,000 in benefits by exaggerating her medical condition and other acts, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Robert LaPina, Special Agent in Charge for the U.S. Postal Service Office of Inspector General.

Melissa Scherz Leist, age 37, of Coshocton, and formerly of Sandusky, pleaded guilty to one count of fraud in the obtaining of Federal Employee’s Compensation Act (FECA) benefits.

Leist is scheduled to be sentenced on May 20. She resigned from the Postal Service prior to her plea.

Leist fraudulently exaggerated her medical condition and limitations, fraudulently rejected limited duty job offers by the United States Postal Service, falsely represented her physical abilities and range of activities and deliberately concealed activities which would have made her ineligible for disability benefits, all for the purpose of fraudulently obtaining FECA benefits in excess of $265,000, according to court documents.

“The majority of postal employees who collect compensation benefits have legitimate claims due to on-the-job injuries and are truly unable to perform any postal jobs,” LaPina said. “A small percentage, however, abuse the system and cost the Postal Service millions of dollars in fraudulent claims. This guilty plea should put those employees who choose to abuse the system on notice that USPS OIG agents will vigorously investigate worker compensation fraud and will seek criminal prosecution and termination of their job and benefits when appropriate.”

The case is being prosecuted by Assistant United States Attorney Thomas A. Karol following an investigation by the United States Postal Service, Office of Inspector General.

Sixteen people were indicted on charges including drug trafficking, possessing illegal firearms and money laundering for their roles in a group that is accused of bringing cocaine, heroin and marijuana from Chicago and selling it in Cleveland, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Robert L. Corso, Special Agent in Charge of the Drug Enforcement Administration.

The ring operated between March and September 2012, according to the indictment. The defendants are from Cleveland unless otherwise noted.

The indictment charges Richard Price, Jr., aka "Richie," age 23; Alexander Abreu, aka "Cuba," age 42; Geraldo Maldonado, aka "Lalo," age 37; Richard Maldonado, age 27; Joshua Johnson, age 21; Robert Hoover, age 27; Gordon Egan, age 19; Reginald Hart, age 34, of Bedford; Pedro Gonzalez, age 29; John Childrey, age 22, of Brook Park; John Hoch, age 19, of Middleburg Heights; Michael Young, age 24; Patrick Corrigan, aka "Patrick Marflak," of Lakewood; and Cory Box, age 20, of Westlake, with conspiracy to distribute and possess with intent to distribute at cocaine, heroin, and marijuana.

Richard Price, Jr., is also charged with distributing cocaine and heroin, possessing with intent to distribute heroin, possessing a firearm in furtherance of a drug trafficking offense, being a felon in possession of firearms, maintaining a premises for drug trafficking, and money laundering. Joshua Johnson is also charged with distributing heroin. John Hoch and Alexander Abreu additionally are charged with money laundering.

Finally, Breanna Johnson, age 19, of Cleveland, Ohio, is charged with distributing heroin while Richard Price, Sr., age 49, is charged with being a felon in possession of a firearm.

“This groups is accused of bringing a variety of drugs, including heroin, cocaine and marijuana, from Chicago to the west side of Cleveland,” Dettelbach said. “Today’s arrests should send a message to those who seek to profit from the drug trade.”

Corso said: “This drug-trafficking organization, led by Richard Price, was unique in that it supplied the west side of Cleveland with such a vast array of illegal drugs. These arrests effectively cut off a pipeline that fed the streets of Cleveland. The success of this sophisticated investigation is directly related to the strong cooperation and support between DEA and our law-enforcement partners.”

The indictment describes a conspiracy in which Price, Jr., obtained cocaine, heroin, and marijuana from Abreu and other suppliers and then distributed the drugs to numerous dealers in the Cleveland area, while being assisted by several of the co-conspirators.

This case is being prosecuted by Assistant United States Attorneys Matthew W. Shepherd and Henry F. DeBaggis. This case was investigated through the combined efforts of the Drug Enforcement Administration (DEA) and Cuyahoga County Sheriff’s Office.

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 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.

U.S. District Judge James S. Gwin sentenced Trang Doan Hoang, 37, and Quoc-Thang Ngo Mai, 39, both of Conneaut, Ohio, in connection with their recent conviction for trafficking in counterfeit merchandise, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Hoang was sentenced to four months in the custody of the Bureau of Prisons, to be followed by two years of supervised release, the first four months of which must be served in home confinement with electronic monitoring.

Mai was sentenced to two years probation, the first six months of which must be served in home confinement with electronic monitoring. The counterfeit merchandise will be forfeited to the United States and destroyed.

On September 13, 2012, a federal grand jury in Cleveland returned an indictment charging Hoang and Mai with one count each of trafficking in counterfeit merchandise. Hoang and Mai each entered guilty pleas to the charge on November 6, 2012.

The indictment charged that between on or about December 21, 2011, and on or about February 14, 2012, Hoang and Mai intentionally trafficked and attempted to traffic in approximately 146 designer handbags, 47 designer wallets and 16 counterfeit Rolex watches which contained counterfeit marks, logos, labels, hang tags, patches, stickers, emblems, holograms and packaging. The marks on the merchandise were identical to and substantially indistinguishable from marks used on genuine merchandise, and were in use and registered for such goods on the principle register of the United States Patent and Trademark Office. Also, the indictment charged that the use of such counterfeit and spurious marks was likely to cause confusion, mistake or to deceive, according to the indictment.

This case was prosecuted by Assistant U.S. Attorney Robert W. Kern, Cybercrime Coordinator for the Cleveland U.S. Attorney’s Office, following an investigation by the Cleveland Office of the Department of Homeland Security, Office Immigration and Customs Enforcement.

The United States Attorney’s Office for the Northern District of Ohio filed 176 illegal firearms indictments last year as part of Project Safe Neighborhood (PSN), U.S. Attorney Steven M. Dettelbach announced.

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

“Ensuring public safety and pursuing individuals who illegally use and possess firearms in furtherance of their activities is a top priority of the ATF,” said ATF Special Agent in Charge Robin Shoemaker, Columbus Field Division. “We will continue to perfect criminal cases against these types of individuals and hold them accountable for their actions.”

Broken down by geography in the district, the most indictments filed came out of the Cleveland office, with 86. That was followed by the Toledo office (31), Akron office (30) and Youngstown office (29).

There were 146 defendants sentenced last year for firearms crimes and the average sentence was more than six years in prison (73.9 months).

Details of selected cases:

U.S. v. Stafford
Akeem Stafford, 25, of Elyria, was sentenced last year to more than 20 years in prison for being a felon in possession of a firearm and ammunition. Stafford fired several rounds from a .45-caliber pistol into a crowd of people outside Uncle Vic’s nightclub in Elyria.

U.S. v. Katrenick
David Katrenick was sentenced to more than nine years in prison in June after pleading guilty to two counts of being a felon in possession of a firearm. Katrenick owned and operated Lazy Dave’s Tattoo Shop on Lorain Road in North Olmsted. He possessed three rifles, two shotguns and ammunition, despite previous convictions for rape, aggravated assault, burglary and other crimes.

U.S. v. Atwal
Amarjit S. Atwal, 65, of Maple Heights, was indicted last month on charges of using a false identity to purchase a firearm. Atwal used the identity of another person to purchase a Glock 9 mm and Smith and Wesson .357-caliber revolver and intentionally failed to disclose his true name and identity when attempting to purchase firearms at the Berea Gun Show.

U.S. v. Gilbert and Moses
Tyrone Gilbert and Rodney Moses, both of Youngstown, were charged with being felons in possession of firearms and ammunition in June as part of a broader investigation into a criminal enterprise that dealt heroin in the Youngstown area.

U.S. v. Taylor
Isiah Taylor III, of Youngstown, was sentenced to seven years in prison last year after being convicted of brandishing a firearm during a crime. That sentence is being served concurrent to a sentence of more than 10 years related to more than 40 armed robberies he committed in Akron, Warren, Boardman, Alliance, Youngstown and other locations.

Project Safe Neighborhoods (PSN) is a nationwide commitment to reduce gun and gang crime in America by networking existing local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. Since its inception in 2001, approximately $2 billion has been committed to this initiative. This funding is being used to hire new federal and state prosecutors, support investigators, provide training, distribute gun lock safety kits, deter juvenile gun crime, and develop and promote community outreach efforts as well as to support other gun and gang violence reduction strategies.

As a point of reference, PSN prosecution statistics for calendar year 2002 through 2011 are as follows:

2002: 117 indictments

2003: 155 indictments

2004: 184 indictments

2005: 220 indictments

2006: 187 indictments

2007: 191 indictments

2008: 157 indictments

2009: 156 indictments

2010: 166 indictments

2011: 218 indictments

2012: 176 indictments

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced an indictment was filed against Beverly Burns, age 26, of Arlington, Texas, Lajuana Batey, age 35, of Toledo, Ohio, Latoya Batey, age 24, of Arlington, Texas, and Shereece Coffey, age 30, of Toledo, Ohio.

The indictment charges defendants with conspiracy and making false, fictitious, or fraudulent claims. The defendants devised a scheme to enrich themselves through the submission of false, fictitious and fraudulent tax returns filed with the Internal Revenue Service during the years 2009 to 2011. The defendants, and others, shared the proceeds obtained from the false return scheme, by converting the refund checks to their own use.

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

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

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

A Brecksville man was sentenced today to nine months of home detention with electronic monitoring, ordered to perform 40 hours of community service by United States District Court Judge Dan Aaron Polster, who also entered the final order of forfeiture in the amount of $1 million arising from his conviction on one count of conspiracy to hire undocumented workers, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Ravindra Telluri, age 42, of Brecksville, Ohio, was also sentenced to five years of supervised release.

Telluri previously pleaded guilty before United States District Court Judge Dan Aaron Polster on October 17, 2012, at which time Telluri paid $1 million to the United States to satisfy the forfeiture based upon the proceeds he received as a result of his criminal activity.

Telluri is a lawful permanent resident of the United States and a citizen of India, according to court records. He also withdrew his application to obtain United States citizenship by naturalization and agreed to no longer work in any employment position involving the recruiting or hiring of undocumented workers.

“We will continue to prosecute those employers who would hire undocumented workers,” Dettelbach said. “While the H-1b temporary worker visa program can be a valuable tool in a company’s hiring practices, abuse of the system will not be tolerated.”

Between January 1, 2008 and October 14, 2010, Telluri was the sole owner and operator of two information technology firms, Hytech Consulting, Inc., and InterOne Corp., both companies located in Seven Hills, Ohio. The firms hired and then placed computer programmer analysts at client firms to serve as computer consultants. The two companies were subsequently sold and Telluri is no longer an owner or operator, according to court documents.

During the time period charged in the criminal information, Telluri engaged in a conspiracy with two unindicted coconspirators in India to recruit and hire citizens of India to come to the United States as temporary specialty occupation workers in the area of information technology as computer programmer analysts, according to the information.

Federal laws permit companies to recruit and hire qualified temporary specialty occupation workers utilizing H-1b visas issued by the United States Citizenship and Immigration Services (USCIS). As part of the process, there must exist an actual position for the person to be hired and a Labor Condition Application from the Department of Labor certifying that hiring a temporary alien worker at the location of the employment will not adversely affect the existing workforce in that geographic area of the country.
It was part of the conspiracy that Telluri was aware at the time of hiring undocumented workers that false documentation purportedly from client companies previously had been submitted as part of the process of submitting petitions for issuance of H-1b visas, and that as a result, he hired workers who were not lawfully authorized to be so employed, according to the information.

“Our goal is to protect opportunities for the nations’s legal workers and level the playing field for those businesses that play by the rules,” said William Hayes, Acting Special Agent in Charge for Homeland Security Investigations Detroit, which covers Michigan and Ohio. “Employers who willfully violate our nation’s hiring laws gain an unfair economic advantage over their law-abiding competitors. They will be held accountable for their actions as evident in the significant financial penalties as a result of today’s sentencing.”

“Today’s sentencing should serve as a stern warning to those who intentionally submit false labor certification applications to the U.S. Department of Labor. The defendant in this case devised an international scheme to fraudulently obtain H-1b visas for foreign workers. The Office of Inspector General will continue to work with our law enforcement partners to combat these types of crimes,” said James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor Office of Inspector General, Officer of Labor Racketeering and Fraud Investigations.

“U.S. Citizenship and Immigration Services (USCIS) immigration officers serve on the front lines protecting our Nations’s security and, as this case so aptly demonstrates, are actively involved in the detection of fraud and abuse,” said Mark Hansen, USCIS District Director in Cleveland. “We remain committed to protecting the immigration system from those who would seek to exploit it and, together with our federal, state, and local law enforcement partners, will strive to maintain the integrity of our national immigration system.”

The case was prosecuted by Assistant U.S. Attorneys Phillip J. Tripi, Gregory C. Sasse, and James L. Morford, following an extensive joint criminal investigation by Homeland Security Investigations, Department of Labor Office of Inspector General, and the United States Citizenship and Immigration Services.

Terry E. Branco was sentenced today to five months imprisonment for corruptly endeavoring to obstruct and impede the due administration of the federal tax laws, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The sentence was imposed in Cleveland by United States District Judge James S. Gwin, who also ordered Branco to pay restitution of unpaid taxes totaling $47,475 for the years 2004 through 2007. 

According to court records, Branco is 65 years old and resides in Vermilion, Ohio.    

Branco previously pleaded guilty to an Information pursuant to a written plea agreement which described her course of conduct over several years, including the following.  For tax years 2004 through 2007, Branco filed frivolous and false U.S. individual tax returns in which she stated that her total adjusted gross income for each year was zero dollars ($0).  Her actual total adjusted gross income was $109,403, $87,440, $93,277 and $113,845 for the 2004, 2005, 2006 and 2007 tax years, respectively. 

Branco also signed a form in 2006 on which she falsely claimed she was not a resident of the United States.  In 2008,  following an IRS audit and assessment of taxes owed, Branco sent a purported “commercial affidavit” to the IRS claiming that the IRS was not an agency of the United States, was “perpetuating a fraud,” and was “not licensed to do business.”  She also stated that failure to rebut the affidavit would result in the “filing of a commercial lien, involuntary bankruptcy and/or tort claim.” Branco then filed a Notice of Default and Affidavit of Notice with a county recorder in Utah, reflecting an intent to encumber real estate owned by an IRS employee whose name was on notices sent to her by the IRS, according to the plea agreement.

The case was handled by Tax Division Trial Attorney Andrew P. Young and Assistant U.S. Attorney John M. Siegel, following investigation by the Internal Revenue Service - Criminal Investigation, Akron, Ohio, and the Treasury Inspector General for Tax Administration, Cleveland, Ohio.                  

A jury returned a guilty verdict against Jeffrey J. Reichert, age 27, of Northwood, Ohio, in connection with a oneicount indictment that charged him with violating the Digital Millennium Copyright Act, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charged that the defendant knowingly manufactured, imported, offered to the public, or otherwise trafficked in technology, products, services, devices, components or parts thereof, which were primarily designed to circumvent technological measures designed to effectively control access to a work copyrighted under Title 17 of the United States Code, for purposes of commercial advantage or private financial gain. Specifically, the defendant was charged with trafficking in modification chips (also known as “Mod Chips”) which are primarily designed to circumvent the technological measures designed into video game consoles (such as the Nintendo Wii) to prevent access to copyrighted works.

The defendant will be sentenced by U.S. District Judge Donald C. Nugent on March 26, 2013, after the completion of a presentence investigation by the U.S. Probation Office.

This case is being prosecuted by Assistant U.S. Attorneys Robert W. Kern and Chelsea Rice of the Cleveland U.S. Attorney’s Office, following an investigation by the Cleveland Office of the Department of Homeland Security, Immigration and Customs Enforcement (ICE).

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a one-count indictment charging Audiel Sanchez-Colin, 37, with illegally reentering the United States following his deportation.

The indictment alleges that Sanchez-Colin was previously removed or deported from the United States to Mexico on February 22, 2008, and October 7, 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 case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the U.S. Border Patrol.

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 has returned an indictment charging Brandon Laster, age 30, of Cleveland Heights, Ohio, with four counts of bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment charges that on October 30, November 18, November 26, and December 11, 2012, Laster did by force, violence, and intimidation, take from the person, presence, and custody of bank tellers the sum of approximately $8,000 which was under the care, custody, and possession of four banks located in University Heights, Cleveland Heights, Independence, and Bedford Heights, the deposits of which were then insured by the Federal Deposit Insurance Corporation.

The indictment was presented to the grand jury by Assistant United States Attorney Michelle M. Baeppler after an investigation by agents of the Federal Bureau of Investigation and local law enforcement officers.

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 records, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

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

A federal indictment was filed charging Rolando Sepulveda with seven counts of health care fraud in connection with the operation of his ambulette company, Med Transportation, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Ohio Attorney General Mike DeWine.

Sepulveda, age 51, operated his business out of the Youngstown area and is currently believed to be residing in Puerto Rico. He defrauded the state of approximately $406,000 from August 2008 to August 2011, according to the indictment.

"This money should have gone to help those who were sick and truly needed transportation,” Dettelbach said.

“That is a huge amount of money that could have been spent on patients who legitimately needed help,” said Ohio Attorney General Mike DeWine. “Instead, this man took that money for himself."

Ambulette services contract with the Ohio Medicaid program to transport patients in vehicles known as ambulettes.  An ambulette is a specially equipped van designed for wheelchair passengers.  Medicaid pays ambulette operators for driving Medicaid patients to and from Medicaid-covered appointments, so long as: (1) the patient rides in a wheelchair; (2) a medical doctor certifies the need for the wheelchair and ambulette; and (3) the ambulette itself otherwise meets safety specifications.

The defendant is charged with scheming to defraud Medicaid of approximately $406,000.00 by charging Medicaid for rides of patients who did not use or need wheelchairs and for billing Medicaid for ambulette attendants, when no such attendants were used by Med Transportation.

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

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

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

An indictment was filed charging Michael N. Smith, age 57, and Darryl Richardson, age 57, both of Toledo, with conspiracy to commit mail fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The defendants are accused of devising a scheme to enrich themselves through the submission of false and fraudulent auto insurance claims to various insurers, causing total losses of more than $135,000. The scheme involved recruiting numerous other co-conspirators to fake auto accidents and then make false claims to insurance companies, according to the indictment.

The conspiracy took place between December 2006 and March 2009 and involved more than 20 claims submitted to companies including GEICO, Safe Auto Insurance Company, Permanent Generl, n/k/a The General, and Progressive Casualty Insurance Company, according to the indictment.

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

The investigating agencies in this case are the United States Postal Service, Cleveland, Ohio, United States Secret Service, Toledo, Ohio, and the National Insurance Crime Bureau, Chardon, Ohio. The case is being handled by Assistant United States Attorney Joseph R. Wilson.

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

Five Canton men were indicted on a charge of conspiracy to distribute cocaine, 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’s Cleveland office.

“This is an example of federal and local law enforcement working together to make sophisticated cases that take out groups that bring down the quality of life for everyone,” Dettelbach said. “We believe this investigation will eliminate some of the worst of the worst offenders in Canton and Stark County.”

“In the past 15 months, collaborative law enforcement efforts have resulted in the indictment of 26 individuals, including nine who were taken into custody this morning, responsible for bringing cocaine and violence to the Canton area,” Anthony said. “The FBI and our local partners will continue efforts to protect the citizens of Canton by dismantling dangerous, illegal drug organizations." 

Indicted are: Jamail Cortez Mitchell, 22; Chad Irvin Tucker, 24; Cruz M. Brown, 23; Jermaine E. Gaitor, 28, and Kevin Slater, 57. All were arrested this morning.

Related state charges were filed against three other people as well.

Mitchell, Tucker, Brown, Gaitor and Slater are accused of conspiring to distribute more than five kilograms of cocaine and more than 280 grams of crack cocaine in Canton between June 2010 and October 2011, according to the indictment.

The men purchased crack and powder cocaine from previously indicted conspirators and resold the drugs in and around Canton, according to the indictment.

This case is a supplemental indictment to the one filed on May 22, 2011, which charged 17 people with taking part in a conspiracy that brought heroin and cocaine from Columbus, Ohio, to Stark County. All 17 people have been found guilty and many have been sentenced to terms between five and 10 years in prison. Jasmine Watkins, one of the leaders the conspiracy, pleaded guilty and is facing a mandatory minimum sentence of 20 years in prison.

These cases are being prosecuted by Assistant United States Attorney Linda H. Barr following an investigation by the FBI’s Safe Streets Task Force, which is comprised of the Canton Police Department, Alliance Police Department, Ohio Adult Parole Authority, Stark County Sheriff’s Office, Massillon Police Department and Perry Police Department.

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

A criminal indictment was unsealed today charging Toledo resident Richard Schmidt with a variety of crimes related to his possession of 18 firearms, body armor and more than 40,000 rounds of ammunition despite a previous conviction for the crime of manslaughter, 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.

Schmidt, 47, was arrested in December following searches of his home and business. He was convicted of manslaughter in 1990 in the Lucas County Court of Common Pleas. Schmidt was forbidden from possessing firearms, ammunition or body armor as a result of his conviction.

“It is deeply troubling that law enforcement found this man, with a prior homicide conviction, in possession of an arsenal,” Dettelbach said. “We owe the FBI and our other law enforcement partners our thanks that they caught this man, with 18 firearms -- some of them assault weapons – high-capacity magazines, more than 40,000 rounds of ammunition, and a bulletproof vest stored in a locked room in a mall, before anyone was hurt.”

Anthony said: “Richard Schmidt is not only accused trafficking in counterfeit goods but also is accused of being a felon in possession of a significant quantity of firearms and ammunition. We are pleased that the FBI, U.S. Attorney's Office, and our partners were able to take Richard Schmidt off the street.”

Count 1 charges that Schmidt, on Dec. 21, 2012, possessed approximately 300 rounds of ammunition and four firearms: two Ruger P95 9 mm pistols, a Sig Sauer P250 9 mm pistol and a Taurus PT145 pistol.

Count 2 charges that Schmidt, on Dec. 28, 2012, possessed approximately 40,188 rounds of ammunition and 18 firearms: a Stag Arms AR-15 rifle, an Armalite AR-10 rifle, a Mossberg 500 12-gauge shotgun, a Remington 870 Express 12-gauge shotgun, a Winchester M94 30/30 rifle, a Winchester M190 .22-caliber rifle, a Remington M700 rifle, a Mossberg M535 12-gauge shotgun, a Russian American Armory SAIGA 12-gauge shotgun, a Federal Arms Corporation FA 91 .308-caliber rifle, an Eagle Arms 5.56-caliber rifle, a Rock River Arms AR-15 rifle, a Ruger Mark II pistol and a Sturm-Ruger .375 magnum pistol.

Count 3 charges that Schmidt, on Dec. 28, 2012, possessed body armor.

Count 4 charges that between Sept. 30, 2011 and Dec. 21, 2012, Schmidt trafficked in counterfeit goods, specifically goods with counterfeit logos and brand-name markings of the National Football League, Nike, Reebok and Louis Vuitton.

These items were found following searches of Schmidt’s home on Marlow Road in Toledo, the store he operates, Spindletop Sports Zone, in Bowling Green, Ohio and trailers in the parking lot of the shopping center that includes Spindeltop Sports Zone. Investigators also recovered seven high-capacity magazines during the search, according to court records.

The United States Attorney’s Office for the Northern District of Ohio filed 176 indictments for violations of federal firearms laws, with the average sentence being more than six years in prison.

This case is being prosecuted by Assistant U.S. Attorneys Duncan T. Brown and Linda H. Barr following an investigation by the FBI, with assistance from Immigration and Customs Enforcement – Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Border Patrol, the Ohio State Highway Patrol, the Toledo Police Department, the Bowling Green Police Department and the Wood County Sheriff’s Office.

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

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 criminal indictment was filed in U.S. District Court today charging a Cleveland man with being a felon in possession of ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Raymone “Ramone” Clements, 42, was found to have one round of .357-caliber ammunition and two rounds of .22-caliber ammunition on Dec. 20, 2012, despite previous convictions in the Cuyahoga County Court of Common Pleas for rape (2006), drug trafficking (2003) and aggravated robbery (1991), according to the indictment.

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

“We will continue to work side by side with our federal, state, county and local law enforcement partners to make sure those individuals who illegally possess firearms and/or ammunition are held accountable for their actions,” said ATF Special Agent in Charge Robin Shoemaker, Columbus Field Division. 

The Unites States Attorney’s Office for the Northern District of Ohio filed 176 indictments for violations of federal firearms laws last year, with the average sentence being more than six years in prison.

This case is being prosecuted by Assistant U.S. Attorney Kelly L. Galvin following an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives and Cleveland Heights Police Department.

The charge carries a maximum penalty of 10 years in prison. If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, the defendant’s role in the offenses and the characteristics of the 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.

Anyone with information about Clements’ whereabouts is asked to call 1-800-ATF-GUNS or the Cleveland Heights Police Department 1-216-321-1234.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a one-count information was filed charging Richard D. Gooding, age 38, of Youngstown, Ohio, with bank robbery.

On November 13, 2012, Gooding entered the Bangor Savings Bank, 1048 Brighton Avenue, Portland, Maine, and robbed a teller of approximately $1,543. He was subsequently arrested in Youngstown, Ohio.

If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the 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 was conducted by the Portland, Maine Police Department, the Federal Bureau of Investigation and the Mahoning Valley Violent Crimes Task Force. The case is being prosecuted by Assistant United States Attorney David M. Toepfer.

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.

Robert M. Peto, a former member of the Cleveland-Cuyahoga County Port Authority, was sentenced to more than four years in prison today after previously pleading guilty to violating the Hobbs Act, law enforcement officials said today.

Peto, 58, lives in Gates Mills, Ohio. He served as a member of the Port Authority Board between December 2004 through in or around August 2012, according to court documents.

Peto obtained property not due to him or his Port Authority office including free and discounted home improvements and materials, entertainment, and a financial benefit related to a vehicle acquisition, according to court documents.

The property and objects were provided by Michael Forlani and/or Doan Pyramid LLC and Neteam, AVI, companies in which Forlani had an ownership interest, according to court documents.

“This sentence shows the high cost to those who would violate the public’s trust in exchange for personal gain,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.  “Corruption – in this case taking bribes and utilizing his position as a board member for the Port Authority – will not be tolerated.”

The conduct took place between 2004 and Oct. 2, 2007, according to court documents.

The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon and Nancy L. Kelley following an investigation by the Federal Bureau of Investigation, the Department of Labor and Internal Revenue Service – Criminal Investigation.

A federal grand jury returned a 42-count indictment against 13 people who are accused of participating in a large-scale heroin trafficking ring in the Ashtabula areas and resulted in the overdose death of an Ashtabula resident last year.

The unsealing of the indictment was announced today by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Robert L. Corso, Special Agent in Charge of the U.S. Drug Enforcement Administration, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation, and William Johnson,  Ashtabula County Sheriff.

The indicted individuals are:

DEFENDANT

AGE

ADDRESS 

Rayshawn Reed, aka “Ray,” aka “Racey”

37

Ashtabula, Ohio

30

Ashtabula, Ohio

Jamarce Miller, aka “Jamie”

36

Ashtabula, Ohio

Amanda Loving

30

Geneva, Ohio

Isaac Hawkins

24

Unknown

Louis Snyder

48

Ashtabula, Ohio

James Robinson, aka “Marell Holley”

37

Ashtabula, Ohio

Tricia Lewis

35

Ashtabula, Ohio

Joey Schmeisser

30

Unknown

Kevin Fridrich

28

Geneva, Ohio

Reginald Bryant, aka “Reg”

39

Euclid, Ohio

Shaunci Osborne

20

Ashtabula, Ohio

Laketha Harris, aka “Jay”

35

Ashtabula, Ohio

           
Count 1 of the indictment charges the defendants with conspiracy to distribute more than a kilogram of heroin, a Schedule I controlled substance.  

Count 2 of the indictment charges Sherord Miller and Shaunci Osborne with conspiracy to engage in money laundering, based on their use of a bank safe deposit box to store and conceal profits from the sale of heroin. 

Count 3 of the indictment charges Rayshawn Reed with knowingly and intentionally possessing with intent to distribute approximately 171 grams of heroin.

Count 4 of the indictment charges Reginald Bryant with felon-in-possession of a firearm.

Counts 5-42 of the indictment charge each defendant with using a communications facility (a telephone) to facilitate a drug trafficking offense. 

“This group is accused of bringing piles of heroin into Ashtabula, which directly resulted in the death of a young woman,” Dettelbach said.

“Heroin abuse in Ohio and across the country is on the rise, and it is directly responsible for hundreds of overdose deaths every year,” Corso said. “This indictment illustrates that the DEA and our law enforcement partners will continue to aggressively target those individuals that choose to sell heroin in our communities, with total disregard for human life.”

Anthony added: “In the past 2 ½ years, collaborative law enforcement initiatives have resulted in the indictment of more than 40 individuals responsible for dangerous illegal drugs in the Ashtabula area, 13 of those being responsible for heroin distribution and taken into custody today.  The FBI, through partnerships with state, local and federal agencies will continue efforts to dismantle drug trafficking organizations that bring danger to our residents.”    

Law enforcement personnel seized heroin, firearms and more than $320,000 in U.S. currency during the year-long investigation. The indictment also seeks the forfeiture of five vehicles used as part of the conspiracy: a 2004 Chevrolet Suburban, a 2004 Cadillac CTS, a 2002 Cadillac Escalade, a 2004 BMW 745Li and a 1976 Oldsmobile Cutlass.

The indictment alleges that from March 2012 to August 15, 2012, defendant Rayshawn Reed arranged for multiple kilogram quantities of heroin to be brought into Northeast Ohio from the Chicago area. 
The heroin was then distributed to co-conspirators in Ashtabula, including Sherord Miller and Jamarce Miller. Sherord Miller and Jamarce Miller then resold the heroin to other co-conspirators, including defendants Amanda Loving, Isaac Hawkins, Louis Snyder, James Robinson, Tricia Lewis, Joey Schmeisser, and Kevin Fridrich, and to heroin users.  Defendants Shaunci Osborne and Laketha Harris helped Sherord Miller sell and distribute heroin, and that Reginald Bryant furnished heroin to the co-conspirators during periods when shortages occurred, according to the indictment. 

The indictment further alleges that heroin from the conspiracy which had been distributed by Jamarce Miller resulted in the fatal heroin overdose of an Ashtabula-area resident on or about July 7, 2012.  

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, their 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, it will be less than the maximum.

This case is being prosecuted by Assistant United States Attorneys Joseph P. Schmitz and Vasile C. Katsaros following a one-year investigation. It was conducted by agents of the U.S. Drug Enforcement Administration and the Federal Bureau of Investigation, with assistance from the Ashtabula County Sheriff’s Office, the Ashtabula Police Department, the Trumbull/Ashtabula Group Task Force (TAG), the Ohio Bureau of Criminal Identification and Investigation (BCI), the Cuyahoga County Sheriff’s Office and the Ohio State Highway Patrol.

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

Four more people were recently sentenced for their roles in a $1.7 million scheme to defraud the United States by obtaining false and fraudulent U.S. Treasury tax refund checks using the identities of deceased people, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Darryl Williams, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation’s Cincinnati office.

Elian Zayed (AKA Nasser Zayed and Nick Zayed), 45, of Westlake was sentenced to 2 ½ years in prison and ordered to pay $177,744 in restitution after pleading guilty to conspiracy and mail fraud.

Samer Sammor, 40, of Broadview Heights, was sentenced to 18 months in prison and ordered to pay $25,429 in restitution after pleading guilty to making a false claim against the U.S.

Eric J. Howard, 42, of Tampa, Florida, was sentenced to more than five years in prison and ordered to pay $177,744 in restitution after pleading guilty to conspiracy to commit mail fraud, mail fraud and aggravated identity theft.

Lamia Suleiman, 44, of Lutz, Florida, was sentenced to three years of probation and ordered to pay $177,744 in restitution after pleading guilty to misprision of a felony.

“The theft of anyone’s identity is a serious offense, but stealing the identities of the recently departed to defraud all the other taxpayers is particularly egregious,” said Steven M. Dettelbach, the U.S. Attorney for the Northern District of Ohio. “These sentences should cause anyone who would engage in this conduct to reconsider.”

Five other people were sentenced to prison last year for their roles in a related scheme.

From 2009 to at least August 2011Zayed, Suleiman, Howard, Samor and other co-conspirators defrauded the United States by filing false and fraudulent tax returns, many in the names of recently deceased taxpayers, according to court documents.

The co-conspirators directed the refunds to controlled locations in Florida. The U.S. Treasury checks generated by the false tax returns were sent by U.S. mail to co-conspirators located in Ohio. The Ohio co-conspirators then sold and distributed those Treasury checks for negotiation at various businesses and banking institutions, according to court documents.

The IRS estimated that the scheme involved at least $1.7 million in fraudulently obtained tax returns.
The case was prosecuted by Assistant United States Attorneys Margaret Sweeney and Gary D. Arbeznik following an investigation was by the the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, and the United States Postal Service.

Contractor Ferris Kleem was sentenced to three years in prison, fined $250,000 and ordered to pay $24,000 in restitution to Cuyahoga County after previously pleading guilty to one count of bribery concerning programs receiving federal funds, law enforcement officials said.

Kleem, 54, of Berea, engaged in a conspiracy between 2006 through July 28, 2008 in which Kleem provided things of value to Cuyahoga County Commissioner Jimmy Dimora, County Auditor Frank Russo and county employee J. Kevin Kelley in return for those men performing acts and promising to perform official acts to benefit Kleem and his interests, according to court documents.

In 2006, Kleem asked Dimora and Russo to assist him in obtaining a county grant to build a pedestrian bridge at Coe Lake in Berea. County commissioners eventually voted to award a $150,000 grant to the city of Berea for the project, according to court documents.

In 2008, Kleem asked Dimora and Russo to assist his brother with a smoking violation at his restaurant. Dimora made phone calls inquiring about the violation, according to court documents.

In 2008, Kleem helped arrange a trip to Las Vegas for Dimora, Russo, Kelley and others. Kleem gave Dimora and Russo $6,000 in cash each -- $1,000 to cover the cost of airfare and $5,000 for gambling. The money was enough to ensure that Dimora and Russo gambled enough to be “comped” suites at the Mirage, as Kleem had arranged, according to court documents.

While in Las Vegas, Kleem gave Dimora approximately $3,500 in gaming chips. He also hired a prostitute, at Dimora’s request, for $1,000 and escorted the prostitute to Dimora’s suite, according to court documents.

While in Las Vegas, Kleem and Dimora discussed details of bids for work on the county’s Juvenile Justice Center project, work for which Kleem was bidding. They also discussed having a specific inspector assigned to the Snow Road resurfacing project. The inspector was eventually assigned to the job, as a result of Kelley’s efforts and Dimora’s influence, according to court documents.

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

A 15-count indictment was filed charging Stanley L. Haythorne, age 37, of Toledo, Ohio, with conspiracy to possess with intent to distribute marijuana, structuring financial transactions to avoid reporting requirements, and possession with intent to distribute marijuana, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Haythorne is accused of conspiring with others to distribute more than 1,000 kilograms of marijuana between 2004 and the present, according to the indictment.

On June 18, 2010, Haythorne possessed more than 150 pounds (71 kilograms) of marijuana, according to the indictment.

In a five-month period in 2008, Haythorne engaged in a series of financial transactions involving approximately $250,000 that were designed to avoid financial reporting requirements (structuring), according to the indictment.

If convicted, the defendants’ 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 case was accepted and investigated as an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program divides the country into 13 regions and is designed to insure that the most sophisticated investigative and prosecutive resources are directed against large scale organized drug trafficking ventures.

The indictment culminates a three-year investigation by the Federal Bureau of Investigation, the Internal Revenue Service, and the Drug Enforcement Administration. The case is being handled by Assistant United States Attorney Thomas P. Weldon.

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

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that an indictment was filed against Justin Eckenrode, age 27, of Rossford, Ohio. The indictment charges Eckenrode with transmitting a threatening communication in interstate commerce.

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. 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 indictment was filed charging Barry P. DeRan, age 54, of Maumee, Ohio, with conspiracy, making false statements in the acquisition of firearms, and unlawfully dealing in firearms, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

“The laws are very clear about who is forbidden from carrying firearms, and this defendant fell into that category,” Dettelbach said. “We will aggressively pursue those who would violate our nation’s firearms laws.”

DeRan is accused of conspiring with others to obtain firearms from Internet firearms dealers. He falsely identified the actual buyer of the firearms when completing the required firearms transfer records, ATF Form 4473, according to the indictment.

This was done to conceal the fact that DeRan was the actual buyer of the firerarms when he was prohibited from possessing, using, carrying or obtaining any deadly weapons by a Lucas County Common Pleas Court civil protection order, according to the indictment.

Between August 2010 and May 2011, DeRan purchased 11 firearms from an Arizona-based dealer and had them shipped to a licensed Ohio firearms dealer to complete the transfer when a person known to the Grand Jury was falsely identified as the actual buyer when completing Form 4473, 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 United States 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. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

A six-count indictment was filed charging Clarence Cornwell, age 51, of Lorain, Ohio, with bank fraud and money laundering, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Cornwell is accused of defrauding Charter One by deposting a check with a materially altered payee's name into a business account Cornwell controlled on July 28, 2010, according to the indictment. Between July 30 and Aug. 4, 2010, Cornwell then made five withdrawals from the account totalling $39,900, 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 United States Secret Service, 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. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Zrino Jukic was sentenced to 37 months in prison and ordered to pay nearly $1.7 million in restitution for crimes related to the collapse of the St. Paul Croatian Federal Credit Union.

Jukic, 42, of Cleveland, previously pleaded guilty to one count of bank fraud and one count of money laundering.

Jukic was a co-owner of the Zlato Group, along with Anthony Raguz, who also served as the credit union’s chief operating officer. Jukic engaged in a scheme to defraud the credit union by providing false information in connection with approximately 11 loan applications. The proceeds of these fraudulent loans were used to allow Jukic and Raguz -- through their company, the Zlato Group -- to invest in certain business ventures, according to court documents. 

Jukic also engaged in a money laundering transaction by transferring fraudulently obtained funds from a Zlato Group bank account to his own bank account, according to court documents.

St. Paul Croatian Federal Credit Union (SPCFCU) was placed into conservatorship in April 2010, when it served 5,400 members and was believed to have assets of more than $238 million. The National Credit Union Association discontinued operation of SPCFCU when it was determined to be insolvent, making it the largest credit-union failure in American history.

To date, 24 people have been indicted for criminal activity related to the credit union. Raguz was sentenced to 14 years in prison and ordered to repay $72.5 million last year. Koljo Nikolovski was sentenced to 18 years in prison for his role in the credit-union collapse.

This case was prosecuted by Assistant U.S. Attorneys Bridget M. Brennan and Jack Sammon following an investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations.

Richard J. Miezin, 47, of Medina, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.

Miezin was arrested this afternoon.

The indictment charges that from on or about April 27, 2010, through on or about February 25, 2011, Miezin knowingly distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct.

Miezin is further charged with knowingly and willfully making false material statements and representations to the Federal Bureau of Investigation during their investigation.

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

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

Over the last several years, the FBI, state and local law enforcement, and the public have developed an increased awareness of the prevalence of child pornography and sexual exploitation of children. More incidents of online child pornography and sexual exploitation are being identified for investigation than ever before. As the power and popularity of the Internet continues to expand, the number of child pornography and sexual exploitation cases opened will likely continue to grow, as will the resources needed to address this crime problem. The task forces located throughout the northern district of Ohio, comprised of federal, state and local law enforcement are a key tool in this effort.

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

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 financial planner from Richfield was sentenced to eight months of home confinement after previously pleading guilty to two counts of willful failure to file tax returns, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Darryl Williams, Special Agent in Charge of the Internal Revenue Service – Criminal Investigations office in Cincinnati.

Jon D. Zapisek, 41, worked as a financial planner for John Hancock Financial between 2006 and 2010. During that time, he failed to report more than $600,000 in taxable income, which resulted in more than $100,000 in unpaid taxes, according to court documents.

Zapisek was also ordered to pay restitution.

This case is being prosecuted by Assistant U.S. Attorney Justin J. Roberts following an investigation by the Internal Revenue Service – Criminal Investigations.

Five California residents were charged in a three-count federal indictment filed in Cleveland related to a conspiracy to bring multiple kilograms of cocaine to the Cleveland area, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

In Count 1, Jesse Owen Ray, age 28, of Los Angeles; Peter Howard, age 53, of Compton, California; Tonya Johnson, age 42, of Los Angeles; Harold Pugh, age 66, of Los Angeles; and Will McCraw, age 67, of Compton, California, were charged with conspiracy to possess with the intent to distribute approximately four kilograms of cocaine.

In Count 2, Johnson was charged with possession with the intent to distribute two kilograms of cocaine.

In Count 3, Ray and Howard were charged with possession with the intent to distribute two kilograms of cocaine.

This indictment is based on the investigation by the Federal Bureau of Investigation, Immigration and Customs Enforcement of Homeland Security, High Intensity Drug Trafficking Area Task Force, Cuyahoga County Sheriff’s Office, and Lakewood Police Department into drug trafficking activities occurring in the Greater Cleveland area and elsewhere.

This case is being prosecuted by Assistant United States Attorneys Teresa L. Dirksen and Matthew Shepherd.

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, 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.

A grand jury returned a two-count indictment charging Rayvon McGhee, age 19, of Cleveland, with carjacking and using a firearm during and in relation to a crime of violence, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that on or about October 18, 2012, McGhee knowingly carried a firearm with the intent to cause death and serious bodily harm to take a motor vehicle by force, violence, and intimidation. The charge stems from an armed carjacking that occurred in the Cleveland area.

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 indictment results from an investigation conducted by the Cleveland Cuyahoga Violent Crimes Task Force, in coordination with the Federal Bureau of Investigation, Cleveland Division of Police and the Cuyahoga County Sheriff’s Office.

The Cleveland Cuyahoga Violent Crimes Task Force targets violent crime through a partnership of the United States Attorney’s Office, Cuyahoga County Prosecutor’s Office, Federal Bureau of Investigation, Cuyahoga County Sheriff’s Department, Cleveland Police Department, Adult Parole Authority, and other state and local agencies.

Cuyahoga County Prosecutor Timothy McGinty’s Office will assist in the prosecution of this case in the United States District Court.

The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall and Special Assistant U.S. Attorney Gregory Mussman.

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

Criminal charges of receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct were filed against two men in unrelated cases, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Charged were Tyler W. Cole, 22, of Massillon, Ohio and David Mariner, 55, of North Canton, Ohio.

Cole's indictment charges that from on or about April 23, 2012, through on or about May 25, 2012, he knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On June 13, 2012, images of child pornography were found on his Dell XPS210 desktop computer and a thumb drive, according to the indictment.

Mariner's indictment charges that from on or about March 13, 2012, through on or about May 16, 2012, he knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On May 16, 2012, images of child pornography were found on his Toshiba laptop computer, according to the indictment.

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

These cases are being prosecuted by Assistant United States Attorney Carol M. Skutnik. The cases were 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 former Cuyahoga County employee and another man were sentenced to prison after previously pleading guilty to racketeering, law enforcement officials said.

Former Deputy Cuyahoga County Auditor Samir Mohammad was sentenced to nearly four years in prison. He pleaded guilty last year to racketeering, conspiracy to commit bribery concerning programs receiving federal funds, Hobbs Act conspiracy, witness tampering and making false statements.

Hamdi “Sam” Qasem was sentenced to four months detention to be followed by four months home detention.

Both men admitted last year to trading things of value with public officials in exchange for favorable personnel decisions, according to court records.

Former Cuyahoga County Auditor Frank Russo and others did cause the county to hire designees of Mohammad and Qasem, including members of the same social organization to which they belonged, in return for Russo and others receiving things of value, according to court records.

Mohammad also used an intermediary to offer and give things of value to former Cuyahoga County Commissioner Jimmy Dimora in return for favorable personnel decisions, according to court documents.

Mohammad, along with Russo, Kevin Payne and J. Kevin Kelley, also used their influence to secure the participation of Broma Information Technology, an IT consulting firm, in a large county project, in return for cash kickbacks. Mohammad received a portion of those cash payments, which he, in turn, delivered to Russo, according to court documents.

The case was prosecuted by Assistant United States Attorneys Henry F. DeBaggis and Justin J. Roberts following an investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation.

EMH Regional Medical Center (EMH) has agreed to pay the United States $3,863,857 and North Ohio Heart Center Inc. (NOHC) has agreed to pay the United States $541,870 to settle allegations that they submitted false claims to Medicare, the Justice Department announced today. 

EMH is a non-profit community hospital system located in Lorain County, Ohio.  During the relevant time period, NOHC was an independent physician group located in Lorain County that practiced at EMH.  Today’s settlement resolves allegations that between 2001 and 2006 EMH and NOHC performed unnecessary cardiac procedures on Medicare patients.  Specifically, the United States alleged that EMH and NOHC performed angioplasty and stent placement procedures on patients who had heart disease but whose blood vessels were not sufficiently occluded to require the particular procedures at issue.

“Billing Medicare for cardiac procedures that are not necessary or appropriate contributes to the soaring costs of health care and puts patients at risk.  Today’s settlement evidences the Department of Justice’s efforts both to protect public funds and safeguard Medicare beneficiaries,” said Stuart F. Delery, Principal Deputy Assistant Attorney General of the Justice Department’s Civil Division.

“Most doctors act responsibly. These few didn’t,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “Patient health and taxpayer dollars have to come before greed.”

This matter was initiated by the filing of a whistleblower complaint under the False Claims Act (FCA).  Under the FCA, private citizens can bring suit for false claims on behalf of the United States and receive a share of the recovery obtained by the government.  The whistleblower in this matter, Kenny Loughner, was the former manager of EMH’s catheterization and electrophysiology laboratory.  As a result of today’s settlement, Mr. Loughner will receive $660,859 of the United States’ recovery.

This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $10.1 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $13.8 billion.

The investigation was jointly handled by the U.S. Attorney’s Office for the Northern District of Ohio, the Justice Department’s Civil Division, the Office of the Inspector General of the Department of Health and Human Services and Federal Bureau of Investigation.  The claims resolved by this settlement are allegations only, and there has been no determination of liability.

Thecase is captioned United States ex rel. Loughner  v. EMH Regional Medical Center, et al., Case No. 1:06-cv-2441 (N.D. Oh.)

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

Camille M. Harris, 42, of Cleveland, Kenneth T. Embry, 56, of Lyndhurst, and Deon D. Levy, 43, of Bedford, are all charged with three counts each: conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering.

All three were arrested this morning.

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

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

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

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

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

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

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

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

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

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

This case is being prosecuted by Assistant United States Attorney Robert J. Patton following an investigation by Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations.
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 indictments charging four Mahoning Valley residents with violating federal firearms and ammunition statutes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

“We will continue to go after those who are forbidden by law from carrying firearms or ammunition, but do so anyway,” Dettelbach said.

Those charged in the unrelated indictments are:

Kevin L. Washington, age 26, of Boardman, Ohio, who was charged with being a felon in possession of a firearm and ammunition and possession with the intent to distribute heroin.

The indictment charges that on or about September 21, 2012, Washington possessed a Ceska Zbrojovka,model 75 SP-01, 9mm pistol, serial number A733206 and ammunition, despite having previously been convicted of aggravated robbery and felonious assault in the Common Pleas Court of Franklin County, Ohio.

The indictment further charges that on or about September 21, 2012, Washington possessed with the intent to distribute approximately 26 grams of heroin.

Antonio S. Smith, age 30, of Warren, Ohio, was charged with being a felon in possession of ammunition.
The indictment charges that on or about November 4, 2012, Smith possessed six rounds of .45 caliber CCI ammunition, despite previous convictions for failure to comply with order or signal of police officer, burglary and aggravated assault, in the Common Pleas Court of Trumbull County, Ohio.

Anthony J. Schaffer, age 24, of Canfield, Ohio, was charged with being a felon in possession of a firearm and ammunition.

Count 1 of the indictment charges that on or about June 26, 2012, Schaffer possessed one round of Hornady .38 caliber ammunition; five rounds of Remington .38 caliber ammunition; 16 rounds of Remington .380 caliber ammunition; two rounds of Winchester .380 caliber ammunition; 17 rounds of Wolf 9mm ammunition and 30 rounds of CCI .22 caliber ammunition. The indictment further charges in Count 2 that on or about December 11, 2012, Schaffer possessed a Smith & Wesson, model SW40V, .40 caliber pistol, with an obliterated serial number, and 14 rounds of .40 caliber ammunition, after he had been previously convicted of burglary in the Common Pleas Court of Trumbull County, Ohio, and complicity to robbery in the Common Pleas Court of Mahoning County, Ohio.

James L. Mosley, age 32, of Youngstown, Ohio, was charged with being a felon in possession of a firearm and ammunition.

The indictment charges that on or about October 23, 2012, Mosley possessed a Harrington & Richardson, model 999, .22 caliber revolver, and ammunition, after he had been previously convicted of trafficking in crack cocaine and possession of cocaine in the Common Pleas Court of Mahoning County, 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 sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.

These cases are being prosecuted by Assistant United States Attorney David M. Toepfer following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives - Youngstown Field Office, the Warren Police Department, the Mahoning Valley Law Enforcement Task Force, the Boardman Police Department 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 Canton man was sentenced to more than 27 years in prison for producing child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Anthony Ortiz, age 24, of Canton, Ohio, was sentenced to 327 months in prison by U.S. District Judge Christopher Boyko.

From on or about December 1, 2010, through on or about October 1, 2011, Ortiz 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, according to court documents.

This case was prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Department of Homeland Security, Homeland Security Investigations

An Avon Lake man was charged today with 28 criminal counts for illegally receiving more than $11 million from the St. Paul Croatian Federal Credit Union, actions which played a role in the credit union’s collapse, law enforcement officials said.

Gezim Selgjekaj, 41, was charged with one count of conspiracy, six counts of bribery, six counts of money laundering and 15 counts of financial institution fraud.

Also charged were Arthur Hoxha, 40, of Rocky River (one count of financial institution fraud) and Judmir Capoj, 36, of North Olmsted (two counts of submitting false statements to a financial institution).

St. Paul Croatian Federal Credit Union (SPCFCU) was placed into conservatorship in April 2010, when it served 5,400 members and was believed to have assets of more than $238 million. The National Credit Union Association discontinued operation of SPCFCU when it was determined to be insolvent, making it the largest credit-union failure in American history.

“This case is yet another sad chapter in the story of the demise of an important community institution,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “The credit union’s leader and his associates enriched themselves on the backs of thousands of honest and hard-working members.”

“This defendant created several fictitious businesses as safe havens for the illegal siphoning of fraudulently obtained loan proceeds,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue to seek justice for the shareholders that placed their trust and faith in the management of this lending institution.”   

Selgjekaj owned, operated and controlled, in whole or in part, several business entities, which were created either primarily as “safe havens” for credit union proceeds or that performed little or no legitimate business despite receiving loan proceeds intended for Selgjekaj’s “business” ventures, according to the indictment.

Those business included: Jimmy’s Trucking; Top Quality Produce; RGV Enterprises; Alba Logistics; GPA Transport; J&F Properties; Lake County Farmers Market; Albkos Properties LLC; G&M Truck Repairs; Produce, Inc.; Fresh Fruit; Fresh Start Co.; East Side Farmers Market; RGA Enterprises, LLC and Ristorante Luciano, according to the indictment.

From 2003 through April 2010, Selgjekaj conspired with Anthony Raguz, who at the times was chief operating officer at SPCFCU, and others, to defraud the credit union, according to the indictment.

Selgjekaj submitted false and fraudulent loan applications to Raguz, including submitting loan requests in nominee’s names when Selgjekaj’s aggregate loan balances reached a level that could have drawn attention from auditors or members of the credit union’s board, according to the indictment.

From March 2003 through July 2004, for example, Selgjekaj received approximately $5 million in fraudulent loan proceeds from SPCFCU. Selgjekaj received another $3.6 million between 2004 and 2008, despite the fact that Selgjekaj was in federal prison for unrelated conduct. Even after defaulting on the $8.6 million in loans, Selgjekaj received an additional $2.9 million in loans from SPCFCU between 2008 and 2010, according to the indictment.

To influence and reward Raquz for providing him with the fraudulently obtained money from SPCFCU, Selgjekaj gave Raguz $40,000 in cash and five checks totaling $66,000, according to the indictment.
Overall, Selgjekaj’s conduct resulted in a loss to the credit union of more than $11 million, according to the indictment.

To date, 24 people have been indicted for criminal activity related to the credit union. Raguz was sentenced to 14 years in prison and ordered to repay $72.5 million last year. Koljo Nikolovski was sentenced to 18 years in prison for his role in the credit-union collapse.

This case is being handled by Assistant United States Attorneys Bridget M. Brennan and Justin E. Herdman following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations. 

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