Four Charged in Cuyahoga County Public Corruption Investigation
| U.S. Attorney’s Office June 12, 2009 |
William J. Edwards, United States Attorney for the Northern District of Ohio, C. Frank Figliuzzi, Special Agent in Charge of the Cleveland Division of the FBI, and Jose A. Gonzalez, Special Agent in Charge of the Internal Revenue Service today announced that a 16-count Information was filed charging John Kevin Kelley, Kevin F. Payne, Daniel P. Gallagher and Brian Schuman in connection with the Cuyahoga County public corruption investigation.
Kelley, age 39, of Parma, is currently employed at the Cuyahoga County Engineer’s Office. Payne, age 54, a Brecksville resident, and Gallagher, age 58, a Strongsville resident, are both former Cuyahoga County Engineer’s Office employees. Schuman, age 32, of Bedford, is the former co-executive director for Alternatives Agency.
The Information charges Kelley with participating in nine bribery schemes, one fraud scheme, and filing false tax returns; charges Payne with seven bribery schemes and filing false tax returns; charges Gallagher with six bribery schemes, obstruction of justice, and filing false tax returns; and charges Schuman with participating in one bribery scheme. According to the Information, Kelley, Payne and Gallagher participated in schemes in both Cuyahoga County and in the Parma City School District.
The following is a brief summary of the offenses:
Count |
Charge |
Defendant |
Brief Description |
1 |
18 U.S.C. § 1951 |
Kelley Schuman |
Bribery related to a $250,000 Cuyahoga County contract |
2 |
18 U.S.C. § 1349 |
Kelley |
Fraud related to diverting an organization’s funds for private gain |
3 |
18 U.S.C. § 1951 |
Kelley |
Bribery related to the Juvenile Justice Center and Snow Road Project |
4 |
18 U.S.C. § 1951 |
Payne Gallagher |
Bribery related to the Engineer’s Office lease |
5 |
18 U.S.C. § 1951 |
Payne Gallagher |
Bribery related to a $100,000 Docuware contract |
6 |
18 U.S.C. § 1951 |
Kelley Payne Gallagher |
Bribery Related to the SBE selection in the $5.26 million GIS project |
7 |
18 U.S.C. § 1951 |
Kelley Payne Gallagher |
Bribery Related to Eagle Group’s involvement in the $5.26 million GIS project |
8 |
18 U.S.C. 666 and 2 |
Kelley Payne Gallagher |
Bribery related to a Parma City Schools construction management contract |
9 |
18 U.S.C. § 1951 |
Kelley |
Bribery related to a $335,000 Parma City School District consulting contract |
10 |
18 U.S.C. § 666 |
Kelley |
Bribery related to a $96,000 Parma City School District construction project |
11 |
18 U.S.C. § 1951 |
Kelley Payne |
Bribery related to $243,000 in Parma City School District contracts |
12 |
18 U.S.C. § 371 |
Kelley Payne Gallagher |
Bribery related to Cuyahoga County hiring and personnel decisions |
13 |
18 U.S.C. § 1519 |
Gallagher |
Obstructing the Cuyahoga County corruption investigation |
14 |
26 U.S.C. § 7206(1) |
Kelley |
Filing false tax returns |
15 |
26 U.S.C. § 7206(1) |
Payne |
Filing false tax returns |
16 |
26 U.S.C. § 7206(1) |
Gallagher |
Filing false tax returns |
SAC Figliuzzi says of the charges, “These charges mark the beginning of the end to the reign that a few corrupt officials have held in Cuyahoga County government.”
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including a defendant’s prior criminal record, if any, a defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Ann C. Rowland and Antoinette T. Bacon, following investigation by the Cleveland office of the Federal Bureau of Investigation and the Internal Revenue Service. The investigation is ongoing.
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.