Former Bank Employee Indicted for Fraud, Bribery, Money Laundering

Actions Led to $12 Million Loss

A 44-count indictment was filed against Paulette Roberts related to a scheme that resulted in the loss of $12 million while she was employed at Fifth Third Bank, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Steven D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation, Cleveland Field Office.

Roberts, 54, resides in Sylvania, Ohio, according to court documents.

Roberts, a loan officer and vice president at Fifth Third Bank in Toledo, falsified documents and submitted them to bank officials to obtain credit approval for large commercial loans which would have otherwise been declined, according to the indictment.

In conjunction with these loans, Roberts solicited and accepted a gratuity payment from the borrowers. She then attempted to conceal these funds by creating a fake consulting business under which she invoiced borrowers for services not performed and accepted the gratuities, according to the indictment.

Roberts ultimately spent the concealed funds to purchase two vehicles, gold coins, and other assets. As a result of defaults upon these loans, the Fifth Third Bank of Toledo, Ohio, suffered a loss of approximately $12 million, according to the indictment.

The indictment charges Roberts with one count of conspiracy to commit financial institution fraud, one count of financial institution fraud, one count of bank bribery, and 41 counts of money laundering.

“Financial crimes come in all shapes and sizes, from self-dealing to Ponzi schemes,” Dettelbach said. “In this case the defendant took advantage of her employer’s trust in an effort to enrich herself.”

“Unfortunately, for some, personal greed trumps work ethic and the law as evidenced in this case,” Anthony said. “Paulette Roberts used her banking knowledge to falsify documents and mislead the financial institution that employed her by attempting to line her own pockets. The FBI will continue to aggressively investigate financial crimes that negatively impact our federally insured banking institutions.”

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

The investigating agency in this case is the Federal Bureau of Investigation, Toledo, Ohio. The case is being handled by Assistant United States Attorneys Joseph R. Wilson and 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.

Akron Woman Sentenced to Over Two Years in Prison for Stealing $350,000 from Law Firm Where She Worked

Spent Portion of the Stolen Funds at Casinos

An Akron woman was sentenced to two-and-a-half years in prison for stealing more than $350,000 from clients of a law firm where she worked, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Catherine Chenoweth, age 56, of Akron, Ohio, pleaded guilty in June to one count of wire fraud. She used at least some of the money she took on gambling trips to casinos in West Virginia, according to the information.

Chenoweth worked for several years as a paralegal for a law firm located in Uniontown, Ohio, until January 2010, when her employment was terminated. During this period, Chenoweth’s duties primarily involved performing work for the Uniontown law firm’s estate and probate clients, according to court documents.

Chenoweth had access to client bank account and other financial information as part of her day-to-day responsibilities; she was required to conduct business transactions for clients or at their request, and she had access to checks, passwords, and other information for this purpose, according to court documents.

She used her position to defraud the firm’s clients of approximately $351,700 by forging or misdirecting checks drawn on client accounts and by making false representations to clients about her own financial situation. Chenoweth then made personal recreational use of the money she stole, including spending it at casinos located in West Virginia, according to court documents.

This case was investigated by the Federal Bureau of Investigation-Akron Resident Agency and prosecuted by Assistant United States Attorney Rebecca Lutzko.

Chagrin Falls Woman Charged with Conspiracy to Commit Wire Fraud for Acts That Resulted in Losses of More Than $300,000

A criminal information was filed charging Leslie Apisdorf, age 51, of Chagrin Falls, Ohio, with conspiracy to commit wire fraud for acts that resulted in loss of more than $300,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

From on or about October 24, 2005 through on or about February 1, 2009, Apisdorf conspired to defraud financial institutions in connection with the financing of trucks and trailers which were purported to be owned by Mark’s Akron Medina Truck Sales Inc., according to the information.

Apisdorf owned and operated Hazel Financial Ltd., which provided financing through Hazel on vehicles sold and purchased by Mark’s. Both Hazel and Mark’s were located at 2636 Brecksville Road in Richfield, Ohio, according to the information.

It was part of the scheme that between 2005 and 2009, Apisdorf and others submitted false documents to financial institutions which purported to show transactions for the sales of trucks and trailers, according to the information.

In fact, the trucks and trailers submitted for financing were inflated above their market rate, were already collateralized or did not exist, according to the information.

Apisdorf and others received loan proceeds and fees in connection with the financing of trucks and trailers based on false documents, according to the information. As a result of the acts committed by Apisdorf during the time period of the conspiracy, financial institutions suffered total losses of approximately $308,474.

The information is a result of an investigation conducted by Special Agent Jeffrey P. Kassouf with the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Henry F. DeBaggis.

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

In all cases the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.

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.

Eastlake Man Sentenced to Nine Years in Prison for Role in Credit Union Collapse, Ordered to Pay $3.2 Million in Restitution

Arben Alia, 35, of Eastlake, Ohio, was sentenced to nine year years in prison for his criminal activity related to the St. Paul Croatian Federal Credit Union (SPCFCU) collapse, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Alia was also ordered to pay restitution of more than $3.2 million to SPCFCU via the National Credit Union Administration. He was also ordered to forfeit his 2007 Mercedes-Benz and his interest in Milano’s Bar & Grille in Willowick, Ohio.

He fraudulently obtained several loans from SPCFCU, with the assistance of Anthony Raguz, its former chief operating officer, totaling approximately $4.5 million from 2006 through 2009, according to court documents.

Alia obtained these loans, in part, to fund various gambling excursions as well as to purchase and renovate Milano’s Bar & Grille, according to court documents.

Alia corruptly gave Raguz approximately $100,000 in exchange for Raguz approving and facilitating the issuance of fraudulent loans to himself and his friends and in-laws, who have also been charged.

In February 2011, he previously pleaded guilty to bank fraud, money laundering, and bank bribery charges.

This case is being prosecuted by Assistant U.S. Attorneys John D. Sammon and Bridget M. Brennan, following an investigation by the Cleveland Offices of the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation Division.

Additional Charges Filed Against Project Manager from Leroy

A federal grand jury eturned a superseding indictment against Jeffrey A. Boring, age 49, of Leroy, Ohio, for mail fraud, which occurred during his employment as a project manager at both The Fowler Company and ESI Inc., said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

From on or about June 27, 2006, through on or about January 18, 2011, Boring, while employed as a project manager with The Fowler Company, created and approved fraudulent invoices from a company he created called Fairport Industrial Group. In addition, Boring instructed vendors, which provided materials and services for Boring’s personal purposes, to invoice the cost to Fowler. As a result of Boring’s fraudulent conduct, The Fowler Company sustained a loss of approximately $1,006,680.

The superseding indictment additionally charges, from on or about August 10, 2011, through on or about February 8, 2012, Boring, while employed as a project manager at ESI Inc., approved purchase orders and invoices for payment for product purportedly needed for ESI customer contracts. In fact, the superseding indictment alleges that ESI paid for product needed by Boring for contracts he had through Fairport Industrial Group with the Defense Logistics Agency.

The superseding indictment is a result of an investigation conducted by Special Agent Russell G. Csaszar with the Federal Bureau of Investigation and Special Agent Brandee Kemer with the Office of the Inspector General, Defense Criminal Investigation Service. This case is being prosecuted by Assistant United States Attorney Henry F. DeBaggis.

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

In all cases, the sentence will not exceed the statutory maximum, and in most cases it will be less than the maximum.

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.

Ohio Man Sentenced to 30 Years in Prison for Sex Trafficking of a Minor

CLEVELAND—Anthony C. Willoughby was sentenced today to 30 years in prison after a jury previously found him guilty of forcing a 16-year-old girl to engage in commercial sex acts, announced Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI Cleveland Office.

“The details of this case underscore why it is so important that we continue to work collaboratively and try to eradicate this modern-day slavery,” said U.S. Attorney Dettelbach. “This defendant preyed upon a weak, vulnerable victim and used her suffering as an opportunity for profit.”

Special Agent in Charge Anthony said, “This case is one of the first human trafficking cases to go to trial in Northern Ohio. Investigating and prosecuting those involved in the sexual exploitation of the most vulnerable of victims is a priority of the FBI. The 30-year sentence imposed today represents the seriousness of the offense and should serve as a deterrent to child predators.”

Willoughby, 39, also known as “P.T.” and “Party Time,” last lived in Toledo, Ohio, according to court records.

A jury on December 16, 2011, found Willoughby guilty on one count of sex trafficking of a minor. Willoughby recruited, enticed, harbored, and transported a juvenile, identified in the indictment as “S.W.,” knowing that by means of force, fraud, and coercion the juvenile was caused to engage in a commercial sex act between February 15, 2009, and March 19, 2009, according to court records.

The victim in this case was 16 at the time of the crime. She had run away from foster care in the winter of 2009 when Willoughby, then 36, agreed to take her in, according to court documents. Willoughby convinced the victim they were in a relationship but then began arranging for “dates” for her from his client list, according to court records.

This case is being prosecuted by Assistant U.S. Attorneys James V. Moroney and Ava Rotell Dustin, following an investigation by the Toledo Resident Agency of the Cleveland FBI and the Northwest Ohio Violent Crimes Against Children Task Force (NWOVCACTF).

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