The Cuyahoga Rough Writers Blog

Cuyahoga FBI Raids: Bedford Next Stop For The Feds

A subpoena issued Feb. 18 -- the same day federal agents raided Nature Stone's headquarters and warehouse -- ordered Judge Peter Junkin to turn over hundreds of pages of court records, e-mails and other documents detailing his relationship with Masetta since Jan. 1, 2005.

The subpoena, a copy of which The Plain Dealer obtained Wednesday, shows for the first time that the ongoing federal public corruption probe of Cuyahoga County government has delved into Bedford courts, a suburban stronghold of the county Democratic party.

The investigation became public last July, when 175 agents raided the homes and offices of county Commissioner Jimmy Dimora, Auditor Frank Russo, county employee J. Kevin Kelley and several contractors who did work at the homes of Dimora and Russo.

On Wednesday, Masetta said through a spokesman that he has been friends with Junkin for 20 years. Before becoming a judge, Junkin represented Masetta as a lawyer.

"There's never been anything inappropriate about our relationship and I have never asked for any special favors," Masetta said.

Junkin declined to comment.

Junkin's lawyer, Randy Klammer, said that the judge has reviewed the matter.

Of more than 30 Nature Stone cases, only one was assigned to Junkin, and it was dismissed by agreement of the parties.

"There's no truer public servant than Judge Junkin," Klammer said.

Bedford Clerk of Court Tom Day called a meeting Feb. 27 to warn all court employees that The Plain Dealer would be running an article about Junkin and the subpoena. Junkin did not attend.

"I told them they were adults," Day said Wednesday. " 'You work here, you're adults. It doesn't involve you, it doesn't involve the courts.' "

But others in the Bedford court are touched by the investigation or the possible fallout. Among them:

• Day himself. Political insiders consider Day a leading contender to replace Dimora as chief of the party if the probe leads to indictments.

• Masetta's daughter-in-law, Audra, is a part-time bailiff for the court.

• Gina Meuti Coppers, who is in charge of archiving and destroying court records, received a subpoena the same day that Junkin was served. The newspaper could not obtain a copy of that subpoena.

Day, who has seen the document, said Coppers' subpoena has nothing to do with court business and is not a court record.

Coppers -- the daughter of former longtime Bedford Heights Police Chief Dominic Meuti -- could not be reached Wednesday. Before working for the courts, she served as special assistant coordinator for senior citizens for Bedford Heights when Dimora was mayor, according to the resume she gave to the courts.

In recent days, Coppers spent her days making copies of court records for Junkin to give to a grand jury on March 18 -- the same day she has been called to testify.

Among the documents Junkin will turn over are 50 civil cases involving attempts by Nature Stone to collect from customers and four traffic and criminal cases involving members of Masetta's family. Junkin handled some of the cases, but magistrates or the other Bedford judge -- Brian Melling, Junkin's former law partner -- handled others.

Court records not sought by investigators show that Masetta's son, Michael, has been in front of Junkin at least six times for traffic and minor criminal cases. Each time, the younger Masetta appears to have received a break. Some of the cases were amended to lesser charges; others were dismissed. Fines were often waived or reduced.

In addition to court records, the subpoena demands Junkin turn over any correspondence he had with Masetta about work done at Hillcrest Memorial Park Cemetery Association, a nonprofit group that runs a 36-acre cemetery in Bedford. Junkin served on the cemetery board for 30 years. He resigned in December 2006, and Masetta became chairman of the cemetery, serving until August 2008.

Under Masetta's leadership, the cemetery's nest egg swelled from $17.7 million to $29.9 million. More than $10 million in new investment income, as well as savings, endowments and other funds boosted the fund, according to tax records.

Junkin's wife, Jill, has served as chief executive officer of the cemetery since 2006. She earns $125,000 a year, according to the group's most recent tax filings in 2007. And William Junkin -- Peter Junkin's son and Jill's stepson -- also serves on the cemetery board, earning about $3,000 a year.

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Dimora's Influence In North Royalton? County Corruption Probe Spreads

         The city has been subpoenaed by a U.S. District Court grand jury to relinquish several documents that involve Mayor Robert A. Stefanik and Joseph O'Malley, second assistant prosecutor.
The subpoena relates to the ongoing FBI investigation into alleged Cuyahoga County corruption.  The subpoena asked for several items, including any and all documents pertaining to O'Malley's personnel file, as well as his application, references, reference letters and documents or electronic mailing about his hiring.                                                                     
         Stefanik's mayoral campaign finance records, prior to the election to present, also were requested.
        The subpoena also asked for communication between any North Royalton city employee and Commissioner Jimmy Dimora, Jason Lucarelli, Samuel Lucarelli, Vincent Russo, doing business as Vincore, 1-888-Ohio Comp, Minutemen Staffing and Doan Pyramid. 
         Stefanik appointed O'Malley, with approval from City Council, in February 2008. It was rumored shortly after Stefanik became mayor that O'Malley was in line for the job to pay back a favor -- Dimora had allegedly loaned money to Stefanik's campaign, then reportedly told Stefanik to give O'Malley the job. Stefanik denied that on Monday. 
        "There is no truth to that," he said. "They are doing this (requesting subpoenas) in a lot of cities. This is just not North Royalton and not just picking on me." The collected documents must be delivered by 9 a.m. Wednesday to the Carl B. Stokes U.S. Courthouse in downtown Cleveland.
        The overall investigation extended from Dimora and Cuyahoga County Auditor Frank Russo to such entities as 1-888-Ohio Comp, Minutemen Staffing, Vincent Russo and Doan Pyramid. The investigation crossed into 1-888-Ohio Comp, a workers' compensation firm that has ties to county employees as well as Russo's son, Vincent.
        The county has used the firm for its compensation claims since 2000. North Royalton, the school district and many other communities also recently began using that firm.
        Former Mayor Cathy J. Luks reportedly said she felt pressured to use the group as well. She then found herself challenged for her seat by a county employee, although she was re-elected.
James Lucarelli is president of 1-888-Ohio Comp and was a Dimora gift giver. His records were requested earlier.
        Samuel Lucarelli helps run Minute Men Human Resources Systems, which offers employer services, including temporary labor and payroll processing. The business includes 1-888-Ohio Comp. William Edwards with the U. S. Attorney Office said the agency could not comment on the grand jury matter.

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FBI Probe: More Details On Council Pres. Sweeney

(Plain Dealer) Sweeney was a rising council star in 2002 when he made plans for a two-story addition to his family's Cape Cod-style home on West 133rd Street. He served as the council's majority leader, one step below then-Council President Frank Jackson, who is now the mayor.

A friend recommended that Sweeney hire Solomon & Associates to manage the addition, Sweeney said. The company, according to marketing materials from around 2001, specialized in retail and other large-scale commercial projects, such as renovations to a downtown hotel.

Solomon obtained a building permit for Sweeney's house in August 2002.[mst: 2001 or 2002? It's 2002, Henry confirmed: ]that year. Doan Pyramid pulled a permit to handle the electrical work the following month.

In December 2002, Solomon applied to become a lead contractor for the city's sound-insulation program for homes near Hopkins, records show.

Three months later, a panel of city administrators accepted Solomon's $831,000 bid for the job. In August 2003, Solomon received a similar contract, this one for an additional $500,000.

The company previously had been a subcontractor for the city's sound-insulation work at a West Side Catholic school, a job worth $472,000.

"We were pleased with the work they did for us," said Keith Tolliver of Gene's Refrigeration, the Medina company that served as lead contractor on that project.

The soundproofing program, which uses federal dollars, had been one that Sweeney had championed as a West Side neighbor to those frustrated with the noise of airplanes flying overhead.

Council members have no vote in awarding such contracts. But, when asked if he had put in a good word for Solomon & Associates, Sweeney replied: "I don't recall."

Other documents show that Roger Solomon of Solomon & Associates and Doan Pyramid President Michael Forlani each presented Sweeney with gifts worth more than $75 in 2002.

The forms, which elected officials must file with the Ohio Ethics Commission, do not specify the nature of the gifts. Sweeney said neither gift relates to his home addition, but he declined to disclose what he received from either businessman.

Solomon, who has since closed his company's downtown office, did not return messages left for him this week at his Valley View home. A lawyer for Forlani declined to comment.

Who hired whom

Sweeney said it was Solomon's choice to hire Doan to do the electrical work at the house.

John McCaffrey, an attorney representing Doan, confirmed that Solomon hired his client as a subcontractor, perhaps "on a suggestion from Mr. Sweeney. That was likely the case here."

Doan, McCaffrey added, billed Solomon $1,700 for its electrical work. He said Doan officials are confident that Solomon paid. He also believes that Solomon, as the project manager, ultimately charged Sweeney for those costs.

Sweeney is not the only elected officeholder to have employed Doan. The company once did electric, furnace and air-conditioning work at the home of Russo, the county auditor.

But Doan specializes in large-scale commercial and government projects, including at Hopkins airport. In 2001, the year before Doan was hired to help at Sweeney's, the company worked on an airport expansion project.

Doan returned to Hopkins in April of this year as a subcontractor on a $4.2 million taxiway relocation project led by Blaze Construction, another focus of the federal corruption probe.

Both of the subpoenas that seek information about Sweeney also seek information related to a project or prospective project at Hopkins sometime around April. One of those subpoenas was served on Blaze Building Corp., which shares a Berea address with Blaze Construction.

Like the soundproofing contract awarded to Solomon, city administrators, not council members, voted on the taxiway contract. Sweeney said he had no role in selecting the winners.

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Council President Sweeney And Others Named In County Corruption Probe

Cleveland Council President Martin J. Sweeney Named In Investgation

A tentacle of the federal corruption probe gripping Cuyahoga County reaches into the highest levels of Cleveland City Hall, the office of the council president.

The Plain Dealer last week obtained documents showing that agents are investigating the relationship between Council President Martin J. Sweeney -- one of the two most powerful men in Cleveland government -- and two construction companies that share a building in Berea.

Investigators also are asking questions about whether some public officials have financial ties to contractors, the same contractors they awarded hundreds of millions of tax dollars to for work at Cleveland Hopkins International Airport and the county's 800 miles of roads. The airport is in Sweeney's council ward and is operated by the city. He once was responsible for oversight of the airport as chairman of council's Aviation Committee.

The documents show for the first time that the corruption probe does not stop at the doors of Cuyahoga County government.

The investigation was revealed to the public July 28, when 175 federal investigators fanned out across the county to raid the offices and homes of government officials and contractors, seizing computers, hundreds of cartons of documents and other materials. Since then, agents have searched other offices -- of contractors and two judges -- serving a total of about 200 subpoenas.

But even the latest subpoenas obtained by the newspaper -- served on July 28 -- show that the focus of the probe remains on the two men who run Cuyahoga County and the county Democratic Party -- Commissioner Jimmy Dimora and Auditor Frank Russo.

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Plain Dealer List More Names Being Investiaged

Last week, The Plain Dealer obtained several more court documents that included new names and companies that have caught the attention of federal agents. Among them:

Marty Sulzmann is the yard-equipment clerk at the Cuyahoga County engineer's office. He began working for the county in 2001. A message left at his office was not returned.

Mike Dever, former head of construction for the county engineer's office, is the deputy to the sanitary engineer. He is not sure why he is named in a subpoena, though he said he once accepted a campaign contribution from Blaze Construction owner Ferris Kleem as a Lakewood councilman.

Ohio Lottery. Subpoenas served on Russo's house sought records of the Ohio Lottery. Michael Dolan, lottery director, said, "I've spoken to no one involved in the investigation."

Rudy Stralka is treasurer of the Cuyahoga County Democratic Party and a member of the Ohio Lottery Commission. He was subpoenaed to produce documents from Dimora's and Russo's political committees. Investigators also subpoenaed financial records, job recommendations, information about hirings and other records.

Marous Brothers Construction is a developer. The Willoughby construction company and its president, Chip Marous, were listed in a federal subpoena and search warrant for Russo. But County Administrator James McCafferty said the county has no major projects involving Marous Brothers Construction. Cleveland has paid the company $5.9 million since 2001.

Lopat Development Co. is at 151 Lou Groza Blvd., in Berea. That is the same address listed for Blaze Construction and Phoenix Cement, which have received millions of dollars in public contracts. State records do not indicate who owns Lopat.

Johnson Controls Inc. is a publicly traded, Milwaukee-based company that specializes in energy efficiency in buildings.

The Parma School District has awarded the company $19.8 million in contracts since 2000. J. Kevin Kelley, a school board member and employee in the county engineer's office, is under federal investigation for ties to companies that do business with the district.

Johnson Controls, in many of its deals with Parma schools, selected as a subcontractor another company under federal investigation -- Doan Pyramid Electric.

The company also has done business with Cuyahoga County, which has paid the company at least $3.3 million since 2004.

Joe Gouker is the project manager for the Parma School District. He said he is not sure why he is named in the Blaze subpoena. He said Blaze has bid, unsuccessfully, on one Parma schools project.

Oracle Corp. is a software company that is tied to a computerized Cuyahoga County mapping system developed by Kelley. Based on Kelley's recommendation, the county hired Michael Baker Jr. Inc. to help build the system with Oracle software.

Federal investigators are checking into that $4 million project.

The county has spent more than $422,000 on Oracle's products since 2006. Cleveland has had contracts with Oracle since 2001 totaling more than $7.5 million. Parma schools have done $14,000 worth of business with the company since 2002.

Dick Corp., now known as dck Worldwide, is based in Pittsburgh and is one of the country's largest construction and construction-management firms. Federal agents raiding Russo's home sought documents about the company. Company lawyer Mike Ambroso said he had no knowledge of the subpoena. A database of county payments to vendors shows the company has received at least $438,775 since 2005.

Woolpert Inc. is a national design and engineering firm based in Dayton. The company provides services including engineering, information management services, construction administration and airport design services. Cuyahoga County has paid about $1.2 million to the company this year.

Green-Source Products LLC is affiliated with D-A-S Construction of Garfield Heights. Green-Source makes insulated wall panels and has a manufacturing plant in Collinwood. The company has been served a subpoena for documents and is cooperating, lawyers said. The business is part owned by John Pumper, father of Steve Pumper. Steve Pumper is CEO of D-A-S and authorities are investigating whether he did work for Dimora in exchange for public contracts.

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Sutherland v. Peter Lawson Jones; Sutherland Draws Stark Differences

An already hotly contested race for Cuyahoga County commissioner got even more heated Wednesday as Debbie Sutherland, who is white, accused black incumbent Peter Lawson Jones of playing the race card.

The jab came during a debate at the City Club of Cleveland in response to an audience member who asked how the mayor of suburban Bay Village would lead such a diverse county.

"It doesn't matter if you are black, white, rich, poor, East Side, West Side -- we have got to work together to move this county forward," replied Sutherland, a Republican, who then added: "My opponent would like to [make this] about race and class, and it's not."

Jones, a Democrat, scolded Sutherland for the remark in his rebuttal.

"How dare you?" he said. "I have done nothing in this race to play on race and class."

After the debate, Sutherland accused Jones of planting someone at debates to ask her questions about diversity. Jones' response: "Give me a break."

The tone was much the same during their hourlong showdown.

Jones, who has held the job since 2002, focused largely on his efforts to create and retain jobs in the county. But Sutherland repeatedly scrutinized her opponent's character and questioned his leadership in the wake of a federal corruption probe of county government.

"Patronage, cronyism, lack of leadership, mismanagement -- and let's not forget the chauffeur and strip club manager," Sutherland said, rattling off a list of complaints.

The chauffeur dig involves the county car and driver Jones has used for county-related meetings. The strip club manager is Rosemary Vinci, a county employee and political ally of Auditor Frank Russo and Commissioner Jimmy Dimora, both focuses of the corruption probe.

Sutherland asked Jones several times during the debate to explain what he has done and would do to address patronage charges and concerns about the ongoing FBI investigation.

Jones never answered her. Instead, he emphasized his record of supporting county funding to create jobs and promote other economic development...

Each candidate borrowed a label from the rival party's presidential nominee.

Sutherland cast herself, much like Democratic Sen. Barack Obama, as the "change" candidate. Jones, alluding to Republican Sen. John McCain, called himself a maverick.

"I said 'no' to raising the sales tax to pay for the medical mart," Jones said, citing the first of two examples of his lone opposition votes on the county's three-member commission. "Then, when we talked about tearing down the Ameritrust Tower, I said 'no' to that."

Sutherland, this time doting on Republican vice presidential nominee Gov. Sarah Palin, won some hearty laughs after landing a quick rebuttal: "I may not know how to field-dress a moose," Sutherland said. "But I know a maverick when I see one -- and Peter's not it."

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More Details on FBI Raids, CMHA, Phillips & Mike Fratello

(Plain Dealer) Investigators want to know whether the head of Cuyahoga County's public-housing agency traded your tax dollars for private jet rides, golfing and property in Florida.

During Wednesday's raid of the Cuyahoga Metropolitan Housing Authority, agents sought any documents showing relationships between Chief Executive George A. Phillips and more than a dozen contractors and developers, including former Cavaliers coach Mike Fratello.

This new thread of the deepening public-corruption probe unspooled Friday in public records that CMHA officials initially refused to release.

Many of the contractors listed in a CMHA subpoena match those on a subpoena for MetroHealth Medical Center -- a publicly funded hospital served with a subpoena on the same day as the housing agency. In MetroHealth's case, investigators want to know whether the public hospital's former vice president -- John J. Carroll -- exchanged tax dollars for kickbacks on building projects.

No one has been indicted in the public-corruption probe, which launched publicly in July with raids of county offices and the homes of Commissioner Jimmy Dimora, Recorder Frank Russo and several contractors.

But the scope of the investigation threatens to upend county leadership and weaken the Democrats' longtime stranglehold on local government.

Phillips is clearly a focus of the CMHA aspect of the investigation, according to documents the agency released Friday. So are contractors who worked for the agency, an energy-conservation project and work done at Beachcrest Towers and Lakeview Terrace housing complexes.

The feds specifically sought documents since 2004 related to Phillips' golfing, eating at country clubs and attending the 2008 Bridgestone Invitational at Firestone Country Club.

Phillips has declined to comment, but a CMHA spokeswoman said he is not stepping down and has not been asked by the agency's board to leave.

"Nobody has been accused of doing anything wrong .¤.¤. nobody has been charged with a crime," said spokeswoman Laura Boustani.

CMHA is no stranger to trouble.

Claire Freeman, who directed the agency from 1990 until 1998, was sentenced to 18 months in federal prison for stealing tax dollars, committing mail fraud and lying about a loan.

Terri Hamilton Brown took over the agency after Freeman was fired and in 2000 hired Phillips from Chicago's housing authority. When Brown left three years later, she was applauded for turning CMHA around, and Phillips was promoted.

As CEO, Phillips oversees a $215 million budget and about 1,000 employees. The agency provides housing for more than 36,000 people in public apartments and subsidized rentals.

One of the more intriguing names to surface in the county probe is Fratello. What relationship Phillips has with the basketball coach-turned TV color-man for the New Jersey Nets is unclear.

Fratello, who coached the Cavs from 1993 to 1999, could not be reached for comment. Fratello, a New Jersey native, appears to divide his time among Atlanta, Fisher Island in Florida and Bratenahl.

He has been involved in at least one Cleveland development. In 2000, he joined a group of men renovating the historic Reliance Building at West 10th Street and St. Clair Avenue downtown.

They planned to open a 24-hour breakfast place for late-night partiers after bars closed. The bottom floor of the building eventually housed a satellite location for stalwart Murray Hill doughnut-maker Gilly's.

The project was led by Bill Neiheiser, CEO of Reliance Mechancial. Neiheiser's name is listed directly above Fratello's on federal documents searching for information from CMHA.

Federal agents this week searched Neiheiser's business and two of his vehicles. Federal agents also searched Neiheiser's home in 2003 during a gambling investigation that involved sports talk show host Bruce Drennan.

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CMHA, Siemens, Doan, Reliance Involved In The Ongoing Cuyahoga FBI Raids

The Cleveland Plain Dealer and Cleveland.com wraped up all of yesterday's events, as several business, homes and CMHA offices were raided by the FBI in an ongoing county corruption probe.

(Plain Dealer) Chapter two of the Cuyahoga County corruption probe opened Wednesday with a new round of early morning raids focusing on a new cast of characters.

The scope of the investigation, which has already shaken the foundation of county government, has clearly widened.

Wednesday's raids took aim at contracts involving the Cuyahoga Metropolitan Housing Authority and MetroHealth Medical Center, two publicly funded agencies that serve the housing and health-care needs of the area's poor.

FBI, IRS and U.S. Housing and Urban Development investigators searched the agencies and the homes of CMHA Director George Phillips; former hospital Vice President John J. Carroll, who was fired in July after taking gifts from a contractor; and Carroll's assistant, Thomas Greco Jr., who still works for MetroHealth.

Agents on Wednesday also searched at least two construction companies -- Reliance Mechanical and a local division of Siemens -- that landed large contracts with both CMHA and the hospital.

While most of the names of those under investigation changed from the initial raids in July, the question asked by the FBI stayed the same: Did public officials squander hundreds of millions of tax dollars trading lucrative contracts for personal favors and kickbacks?

During the first round of raids July 28, federal investigators focused on two of the most powerful public officials in the county: Commissioner Jimmy Dimora and Recorder Frank Russo. Search warrants sought information about a handful of developers who had worked for the county and a few contractors who had also worked at the homes of Dimora and Russo.

Likewise, Wednesday's raids focused on men who had equally great power at their agencies. Phillips was the head honcho of CMHA and Carroll, with Greco's help, oversaw all of the hospital's building and renovation projects.

What investigators sought from CMHA is unclear. Agency officials declined to release the search warrant. But MetroHealth officials released a subpoena showing that investigators are probing Carroll and Greco's relationships with contractors since 1999.

They also want to know whether contractors gave the men any gifts or performed any work at their houses.

WHAT HAPPENED?

An unprecedented 200 federal agents launched the first salvo of search warrants in July. Wednesday, about half that number -- still considered extraordinary in any investigation -- fanned out across the region about 8 a.m. with nine search warrants.

Here's where they went and why:

CMHA Director Phillips' St. John Avenue home in Cleveland.

About a dozen agents approached the split-level and asked two young men to leave the property during the raid, neighbors said. While some agents spoke to Phillips outside, others took photos of his home's exterior.

Phillips said he was "very surprised" by the raid. "At the proper time, I'll have something to say. I'm sure the truth will come out."

Phillips took over CMHA in 2004. Federal agents also searched his office.

Why are the feds interested in Phillips?

Among other things, CMHA awarded a $33 million contract to Siemens Buildings Technologies of Garfield Heights to install energy-efficient lights, furnaces and hot water heaters in nearly 7,000 public housing units. New heating and cooling systems also were installed in most high-rise buildings, according to the housing authority.

Doan Pyramid and Reliance Mechanical Corp., which are named in documents related to the investigation, were among the subcontractors.

Phillips called the renovation "one of the largest projects of this type in the history of public housing." The work was intended to save CMHA $3.7 million a year in utility costs and repairs.

It's unclear whether the project succeeded.

Former MetroHealth Vice President Carroll's Plum Creek Trail colonial in Chagrin Falls and the Strongsville home of his one-time deputy Greco

Early in the day, about 20 agents arrived at the Plum Creek house. It was unclear Wednesday whether Carroll still lives at the three-bedroom, 3½-bath house any more. It's on the market for $319,000.

By 12:30 p.m., only six agents lingered. They carried away a computer hard drive and seven boxes.

No one answered the door at Greco's home Wednesday evening. It's unclear what the feds may have taken from it.

Why are the feds interested in Carroll and Greco?

MetroHealth fired Carroll from his $195,000 job July 14 after the IRS notified the hospital that a contractor -- East-West Construction -- had given gifts and entertained employees from MetroHealth.

Federal investigators now want hospital records dating back to 1999 that show the two men's relationships with contractors, including Doan Pyramid (raided as part of the probe in July), East-West Construction, Reliance Mechanical and Siemens.

Hospital spokeswoman Eileen Korey said that Greco managed projects at the Old Brooklyn campus, which includes a $65 million senior wellness center. The county kicked in at least $10 million toward the project.

The county owns MetroHealth, and county commissioners appoint the hospital's board members. County taxpayers subsidize a fraction of MetroHealth's budget of more than a half billion dollars.

Greco, who still works for the hospital, was placed on administrative leave after the raids Wednesday.

Siemens' offices on Transportation Boulevard in Garfield Heights and officer Michael McMichael's Mentor home.

By 11 a.m. , FBI agents were inside the office with the blinds closed. About a half-hour later, about 10 Siemens employees left. One said he was told to go home.

At 3:30, agents carried out 30 file boxes and 12 shopping bags. They also took one box that appeared to contain mechanical equipment.

Why are the feds interested in McMichael?

He is an employee at Siemens, which handled a $33 million energy conservation contract with CMHA that Phillips helped shepherd through. McMichael is named in a federal subpoena involving Carroll and Greco. The subpoena indicates that agents are looking into whether contractors, including Siemens, had any financial relationship with the hospital administrators or whether any contractor did work at the men's homes.

Reliance Mechanical's offices on Hamilton Avenue in Cleveland and two vehicles at the Gates Mills home of company CEO William Neiheiser.

As many as 20 FBI vehicles and 30 FBI and IRS agents were at the offices Wednesday.

When reached on his cell phone, Neiheiser said he was out of town and didn't know what was happening.

"I have no idea what it's about," he said. "If you find out, call me back today or tomorrow."

Why are the feds interested in Reliance Mechanical and Neiheiser?

Reliance was a subcontractor on the energy contract designed to save CMHA $33 million over 12 years. Neiheiser's name also came up in court documents linking him to an IRS and FBI gambling investigation in 2003 involving sports talk show host Bruce Drennen. He was never charged.

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Cuyahoga FBI Raids, CMHA

The FBI is raiding an office at the Cuyahoga Metropolitan Housing Authority headquarters at 1441 West 25th Street.

Agents are seeking documents believed to be in one office.

The search is part of an ongoing investigation into corruption involving top county officials.

FBI spokesman Scott Wilson said he could not provide further information.

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Chairman Frost Questions Lawson Jones' and Dimora's Blaze Co. Vote

(CLEVELAND) Peter Lawson Jones, President of the Board of Cuyahoga County Commissioners, yesterday allowed his political godfather, Commissioner Jimmy Dimora, to vote on a contract award of nearly $2 Million Dollars to Blaze Construction.  Dimora and Blaze Construction, whose owner Ferris Kleem has donated to Jones’ campaign fund, are at the center of an ongoing FBI and IRS investigation of alleged government corruption. Jones and Dimora, joined by fellow commissioner Tim Hagan, unanimously awarded a contract for $1.98 Million to Blaze today for the Rockside Roadbridge replacement contract.

“The people of this county look to Commission President Peter Lawson Jones to protect taxpayer money, and he has let them down. Jones not only voted to award nearly $2 Million to a campaign contributor of his who is under federal investigation, he failed to prevent Jimmy Dimora from exerting direct influence on the decision.” according to Republican Party of Cuyahoga County Chairman Rob Frost.

Dimora has been under the cloud of the federal investigation for over two months, but Jones still has not called for Dimora to resign.  Quite the opposite, Jones has defended Dimora, explaining that “Dimora told him that he (Dimora) did not believe he had done anything wrong.” 

Chairman Frost suggested a different explanation.  “The Republican Party called upon Peter Lawson Jones nearly two months ago to release his personal financial records and assure voters that he has no conflicts of interest of his own in this matter, yet to this date he has refused to do so.  Perhaps, with the IRS among those investigating Dimora, and Jones' own continuing problem of unpaid federal taxes, he would rather avoid the subject of the inquiry altogether.”  Jones had a federal tax lien placed on his property in 2001, and to this day still shows the IRS as a creditor on his Financial Disclosure Statement¹

“When Commission President Jones doesn’t even pay his own taxes, can we really expect him to keep Jimmy Dimora honest?” asked Frost.

   

¹ Source – Cuyahoga County lien record and Ohio Ethics Commission Financial Disclosure Statements of Peter Lawson Jones, 2001-2007, with the latest filed February 4, 2008.

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More Details on Steven Terry & FBI Raids

(Plain Dealer) Cuyahoga County Common Pleas Judge Steven Terry, whose office was searched this week as part of a public-corruption investigation, once headed a Cuyahoga County department that obtained millions in federal grants for a computer-mapping project spearheaded by J. Kevin Kelley, a focus of the probe.

Federal agents declined to say what they looked for Tuesday night in the offices of Terry and Judge Bridget McCafferty. But they have said they are looking at Kelley's handling of contracts in the county engineer's office. The computer-mapping project was also mentioned in federal search warrants for county administrative offices raided in July.

Terry's lawyer, Angelo Lonardo, on Thursday said the search had nothing to do with his client's tenure as director of the county Judicial Affairs Department or any other time prior to his appointment as judge in April 2007. But Lonardo declined to say what agents sought in their search warrant.

"I can tell you in all good faith that it had nothing to do with that agency," Lonardo said. "Kevin Kelley's not even mentioned in this thing."

Agents went public with their probe in July, when they raided the homes and offices of county Commissioner Jimmy Dimora, Auditor Frank Russo and Kelley, an administrator in the engineer's office. The three are suspected of trading county contracts for work on their homes, according to search warrants and other court documents.

Terry, a political ally of Russo, was appointed to the bench by Gov. Ted Strickland and is running this year for election.

The judge's lawyer vowed Wednesday to release the inventory of what was taken by federal agents. He reneged on that promise Thursday.

Lonardo said Assistant U.S. Attorney Ann Rowland advised that the decision whether to release the documents was up to him.

"As a defense lawyer you don't want to do anything to jeopardize the investigation," he said. "But I really don't think that if it is disclosed it will be a big deal."

Henry Hilow, lawyer for McCafferty, also declined to release the documents, which are under seal in federal court.

The day after the July raids on the other four public offices, county officials released the documents showing what investigators sought and inventories of what the agents seized.

Marty Murphy, who served as assistant director of Justice Affairs under Terry, said the director had no hands-on involvement with dispensing grants for the mapping system.

Murphy, who remains an assistant director in the department, said Terry's role would have been to prepare a resolution asking county commissioners to accept the grants....

Of $6.5 million in grants targeted for the mapping project from about 2003 to 2007, a little over $5.7 passed through the engineer's office under seven different contracts. Murphy said the engineer's office was likely chosen because it is responsible for retaining and updating all county maps.

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