Preliminary Order of Forfeiture Entered in Connection with Cuyahoga County Corruption Investigation

A preliminary order of forfeiture has been entered by Judge Kathleen M. O’Malley in a criminal case connected with the Cuyahoga County corruption investigation; namely, the United States’ criminal case against Thomas J. Greco, Jr., Sharon L. Long, Deputy Chief, Criminal Division in the Northern District of Ohio; C. Frank Figliuzzi, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation; and Jose A. Gonzalez, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, announced today.

On June 8, 2010, following a jury trial, defendant Thomas J. Greco, Jr. was found guilty of Conspiracy to Commit Bribery Concerning Programs Receiving Federal Funds (Count 1); Bribery Concerning Programs Receiving Federal Funds (Counts 2 through 6); Hobbs Act Conspiracy, Extortion Under Color of Official Right (Count 7); Hobbs Act, Extortion Under Color of Official Right (Count 8); Making and Subscribing a False Tax Return (Counts 9 through 12); and, Conspiracy to Commit Mail Fraud (Count 13).

In an agreement incorporated into the preliminary order of forfeiture, Greco, Jr., agreed to the forfeiture of eight (8) household/personal items as property derived from criminal proceeds. Further, Greco agreed to the forfeiture to the United States of a money judgment in the amount of $120,000.00.

To satisfy the $120,000 money judgment, defendant Greco has turned over a certified check to the United States in the amount of $10,000. With respect to the remaining $110,000 of the $120,000 money judgment, Greco agreed to the forfeiture of the following real property: 16423 Academy Drive, Strongsville, Cuyahoga County, Ohio, titled to defendant Greco and his wife. Specifically, as set forth in the agreement, the net proceeds of the sale of the real property (up to $110,000) shall be paid directly to the United States. Alternatively, until January 12, 2011, a $110,000 payment may be made to the United States in lieu of the forfeiture of the real property. It is noted that defendant Greco’s interest in the real property is approximately $110,000.00.

As indicated above, the order entered by Judge O’Malley is a “preliminary” order of forfeiture. Under federal law, before a “final’ order of forfeiture may be entered by the court, the United States must publish notice of the preliminary order on an official government Internet site.

Additionally, in the preliminary order of forfeiture, Judge O’Malley acknowledged that the $120,000 money judgment figure is for purposes of criminal forfeiture only. The restitution amount and the loss amount resulting from defendant Greco’s criminal activity are separate and distinct issues, which will be determined by the court at defendant Greco’s sentencing hearing.

It is the intent of the United States to return the proceeds of any forfeited properties to the victim of defendant Greco’s illegal conduct; namely, The MetroHealth System.

This forfeiture action was handled by Assistant U.S. Attorneys Robert J. Patton and James L. Morford. The underlying criminal case was prosecuted by Assistant U.S. Attorneys Ann C. Rowland, Antoinette T. Bacon, and Robert J. Patton. The investigation was conducted by the Cleveland office of the Federal Bureau of Investigation and the Internal Revenue Service. The Cuyahoga County corruption investigation is ongoing.