IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF OHIO EASTERN DIVISION UNITED STATES OF AMERICA, IN I V. CASE NO. Title 18, Sections 371,_ KENNETH TYSON, 1343, 1346, and 2, United States Code Defendant. GENERAL ALLEGATIONS At all times material to this Indictment: l. Defendant KENNETH TYSON (hereinafter, was a United States citizen, and a resident of Cleveland Heights, Ohio, within the Northern District of Ohio, Eastern Division. TYSON was an agent and ?duciary of Cuyahoga County Land Reutilization I Corporation also known as the Cuyahoga County Land Bank, where he held the title of Property Specialist. 2. was a non?pro?t, government-purposed organization that was registered in the State of Ohio on or about April 16, 2009. mission was to strategically acquire property, return it to productive use, reduce blight, increase property values, support community goals, and improve the quality of life for county residents. Case: Doc 1 Filed: 11/21/18 2 of 9. PagelD 2 3. [From on or about January 24, 2013, through on or about January 24, 2014, received more than $10,000 from the United States government under federal programs involving, grants, contracts, subsidies, loans, guarantees, insurance, and?other forms of federal assistance, more speci?cally from the United States Department of Housing and Urban Development Neighborhood Stabilization Funds 4. used demolition contractors to demolish properties. 5. Demolition contractors were permitted to apply to to be put on the list of quali?ed contractors. 6. invited quali?ed demolition contractors from its list to bid On batches of properties to demolish. 7. As part of his job at TYSON served as a liaison between the city of East Cleveland and on land acquisition, demolition, and NSP2 funding requests. 8. Also as part of his job at TYSON vetted prospective demolition contractors seeking to be placed on the quali?ed demolition contractor list and to receive demolition jobs from the 9. In his position at TYSON exercised in?uence over the selection of quali?ed demolition contractors to complete demolition jobs 10. On or about June 10, 2013, TYSON purchased a residential property located at Castleton Road, Cleveland Heights, Ohio 44118 Property?). - 11. On or about June 18, 2013, TYSON transferred Property by quitclaim deed to EPIC Lifestyle LLC. 12. . EPIC Lifestyle LLC was registered as a Limited Liability Company with the state of Ohio on January 7, 2013, with TYSON listed as the registered agent. Case: Doc 1 Filed: 11/21/18 3 of 9. PagelD 3 13. On or about September 21, 2015, EPIC transferred TYS Property by quitclaim deed back to TYSON. 14. MR. was a resident of the Ohio and a a demolition contractor. 15. LA. was a resident of Oklahoma and a demolition contractor. 16. LA. was the Manager/Registered Agent on file for Residential Commercial Industrial Services, LLC Services?). M.R. operated RC1 Services. 17. RCI Services was a demolition company formed in the Massachusetts and registered to do business in Ohio. RCI Services principal place of business was. in and around East Cleveland, Ohio. 18. MS was a resident of the Ohio. MS. was the Chief of Staff in for East Cleveland. 19. Drain Guru, Incorporated (?Drain Guru?) was registered in Ohio on or about May 15, 2012. Drain Guru was a full service plumbing company. 20. Trapp Masonry and Concrete, LLC was a concrete business owned and operated by CT. 1 COUNT 1 (Conspiracy to Commit Bribery Honest Services Fraud, in violation of 18 U.S.C. 371) The Grand Jury charges: 21. The factual allegations contained in paragraphs 1 through 20 are re?alleged and incorporated by reference as if fully set forth herein. 22. From in or around October 2013, and continuing to in or around November 2018, in the Northern District of Ohio, Eastern Division, Defendant KENNETH TYSON, together with MS, M.R., and others known and unknown to the grand jury, did knowingly and intentionally, conspire, confederate, and agree together and with each other: Case: Doc 1 Filed: 11/21/18 4 of 9. PagelD 4 a. for TYSON, an agent of to corruptly solicit, demand for the bene?t of any person, accept and agree to accept a thing of value from a person, intending to be in?uenced and rewarded in connection with a transaction and series of transactions provided, completed, or paid for by MR. involving $5,000 or more, in violation of 18 U.S.C. and b. to devise a scheme and intend to devise a scheme andarti?ce to defraud and deprive and attempt to defraud and deprive the citizens of the Cuyahoga County of their right to the honest services of TYSON, Property Specialist at through bribery, in violation of 18 U.S.C. 1343 and 1346. I The Obiects of the Conspiracy 23. The objects of the conspiracy were for: TYSON to enrich himself and repair property, through the services of M.R., in exchange for TYSON taking and agreeing to take of?cial action to bene?t MR. and RCI Services; and M.R. to enrich himself and RC1 Services, by receiving demolition jobs from in exchange for providing and agreeing to provide repair and contractor services at property. 24. It was a further object of the conspiracy that TYSON, M.R., and RCI Services concealed, attempted to conceal, and encouraged others to conceal from the public, and law enforcement their corrupt relationship and dealings with one another, including the fact that M.R. provided free contractor and repair services to TYSON at Property. The Manner and Means of the Conspiracy 25. It was part of the conspiracy that: i Case: Doc 1 Filed: 11/21/18 5 of 9. PagelD 5 a. MS. introduced M.R. to TYSON in order for TYSON to arrange for MR. and RCI Services to be put on the quali?ed demolition contractor list, and then to be invited to bid on demolition jobs. b. TYSON solicited MR. to provide free contractor and repair services at TYS property. I c. In return for MR. providing free contractor and repair services at property, TYSON performed and agreed to perform of?cial acts in his capacity as Property Specialist at Speci?cally, TYSON and MS. assisted and arranged for RC1 Services to be put on the quali?ed demolition contractor list and for RC1 Services to be invited to bid on demolition jobs. Overt Acts 26. M.S. arranged a meeting and introduced M.R. to TYSON. 27. On or about October 15, 2013, EPIC applied for a permit in Cleveland Heights as a contractor to repair the main water service line at TYS Property. 28. 1 On or about that same date, the Cleveland Heights Building Department approved the permit for repair of the water service line at Property. 29. On or about October 21, 2013, Drain Guru invoiced M.R. approximately $2,565 for plumbing work completed to repair or install a new waterline at property. 30. On or about October 21, 2013, continuing through on or about October 24, 2013, Drain Guru employees .S., R.C., .P., and MR. installed a new waterline at property. 31. In or around October 2013, .P. was hired. by MR. and paid approximately $1,000 to cut down a tree at Property. Case: Doc 1 Filed: 11/21/18 6 of 9. PagelD 6 32. On or about October 24, 2013, J.M., Director of the Department of Community Development for the East Cleveland, at the direction of MS, sent documents and pictures to CS, Director of Acquisitions, Dispositions and Development at con?rming that RCI Services had previously completed demolition work in the City of East Cleveland. 33. On or about October 30, 2013, LA. and MR. attended a meeting at 34. In or around October 2013, TYSON and .M conducted a site visit at RCI Services on Elderwood Rd. in the City of East Cleveland. 35., On or about November 12, 2013, L.A., pursuant to request, emailed to TYSON pictures of demolition jobs that RCI Services had previously completed in East Cleveland. 36. On or about that same date, TYSON responded to email, requesting the addresses of the pictures. 37. Also, on the same date, M.R. replied and emailed the addresses to TYSON. 38. On or about November 21, 2013, RCI Services was added to system as a new demolition contractor, thereby allowing RC1 Services to bid on contracts. 39. On or about November 26, 2013, .M. of sent an email to LA. seeking RCI Services bid to demolish sets of properties. Speci?cally, invited LA. and RCI Services to bid to demolish three sets of properties. 40. On or about November 30, 2013, M.R., on behalf of RCI Services, submitted a bid to on the three sets of properties. 41. On or about December 5, 2013, .L., Disposition Assistant at emailed L.A. notifying L.A. that RCI Services submitted the low bid on one of the three set of properties. Case: Doc 1 Filed: 11/21/18 7 of 9. PagelD 7 42. On or about December 11, 2013, .O., Acquisitions Assistant at emailed LA. notifying L.A. that RC1 Services? demolition contract was prepared and ready to be signed. 43. On or about December 20, 2013, MR. signed a demolition contract on behalf of RC1 Services with to demolish the set of properties. 44. On or about that same date, RC1 Services received three Notices to Proceed from authorizing it to demolish three properties from the contract. 45. On or about January 14, 2014, RC1 Services received a Notice toProceed from authorizing it to demolish a fourth property from the contract. 1 46. On or about January 24, 2014, RC1 Services received a check for approximately $13, 508 from for demolishing two of the contracted properties. 47. On or about February 3, 2014, RC1 Services received a check for approximately . $12,750 from for demolishing the third contracted property. 48. On or about March 7, 2014, RC1 Services received a check for approximately $6,097 for demolishing the fourth contracted property. 49. On or about June 10, 2014, Trapp Masonry and Concrete applied for a permit in the city of Cleveland Heights to complete sidewalk and driveway conCrete work at Property. ?50. On or about June 18, 2014, the Cleveland Heights Building Department approved the permit for concrete work at Property. 51. In or around June 2014, CT. completed concrete work on. a sidewalk and driveway at TYS Property. 52. On or about July 2, 2014, RC1 Services paid Trapp Masonry and Concrete, LLC approximately $3,200 for concrete work completed at Property. Case: Doc 1 Filed: 11/21/18 8 of 9. PageID 8 Allin violation of 18 U.S.C. 371. COUNTS 2-4 (Honest Services Wire Fraud, in violation of 18 U.S.C. 1343, 1346, and 2) The Grand Jury further charges: 53. The factual allegations contained in paragraphs 1 through 20 and 25 through 52 are re?alleged and incorporated by reference as if fully set forth herein. 54. From in or around October 2013, and continuing through in or around July 2014, in the Northern District of Ohio, Eastern Division, Defendant KENNETH TYSON, aided and abetted by others known and unknown to the grand jury, devised and intended to devise a scheme and arti?ce to de?aud and to deprive the Cuyahoga County Land Reutilization Corporation and the citizens of Cuyahoga County of their intangible right to the honest services of KENNETH TYSON, as Property Specialist at the Cuyahoga County Land Reutilization Corporation, through bribery. 55. Between in or around October 2013, and continuing through in or around July 2014, in the Northern District of Ohio, Eastern Division, Defendant KENNETH TYSON, aided and abetted by others known and unknown to the grand jury, for the purpose of executing the above?described scheme and arti?ce to defraud and deprive, transmitted and caused to be transmitted by means of wire and radio communication in interstate commerce the signals and sounds described below for each count, each transmission constituting a separate count: on inatin E?Mail Count Date Description Mail Account Location . Server Locatlon 2 11/26/13 E?mail from .M. to LA. Cleveland, Ohio GoDaddy server subject ?Request for Bids located in Arizona 1311C Due Tuesday Dec. 3rd 11:00 Case: Doc 1 Filed: 11/21/18 9 of 9. PagelD 9 3 12/5/13 E-mail from IL. to LA. Cleveland, Ohio GoDaddy server subject Bid Results located in Arizona Demo Batch 4 12/11/13 E?mail from 1.0. to? LA. Cleveland, Ohio GoDaddy server . subject Services located in Arizona Demo Contract All in violation of Title 18, United States Code, Sections 1343, 1346, and 2. COUNT 5 (Bribery in Federally Funded Programs, in violation of 18 U.S.C. The Grand Jury further charges: 5 6. The factual allegations contained in paragraphs 1 through 20 and 25 through 52, are re?alleged and incorporated by reference as if fully set forth herein. 57 . From in or around October 2013, and continuing through in or around July 2014, in the Northern District of Ohio, Eastern Division, Defendant KENNETH TYSON, did corruptly Solicit and demand, accept and agree to accept a thingof value from a person, intending to be in?uenced and rewarded in conneCtion with a transaction and series of transaCtions of the CuyahogaCounty Land Reutilization Corporation that involved $5,000 or more, to Wit: Defendant solicited, demanded, accepted, and agreed to accept approximately $6,700 in contractor and repair services from MR. in exchange for assisting and arranging for RC1 Services to be put on the qualified demolition contractor list and being invited to bid on demolition jobs, which assisted MR. and RC1 Services in Winning a contract for demolition valued at approximately $32,355. All in Violation of Title 18, United States Code, Section A TRUE BILL. Original document Signatures on ?le with the Clerk of Courts, pursuant to the E?Government Act of 2002.