Cuyahoga County Corruption Scandal: When Friendships Go Bad
FBI and IRS agents served 10 search warrants on Monday at Cuyahoga County offices, business, and homes in connection with an ongoing public corruption investigation. 200 FBI agents, some brought in from nearby Pittsburgh, were on hand to assist with the searches, and raided several locations including the county administration building, an engineer's office, and information services center, and several businesses within the county.
Auditor Frank Russo and Commissioner Jimmy Dimora's offices were searched along with the rest of the third and fourth floors of the administration building. FBI vehicles were also spotted at the two county officials' homes.
Staff at the county's info services center were sent as they were unable to do their work during the raid. The center does computer work for various county agencies.
J. Kevin Kelly, who serves as the director of of the county's geographical information system, is also believed to have been searched. He is not to be confused with Cleveland city councilman Kevin J. Kelly, who released a statement reiterating that he is not the subject of a federal investigation.
Federal agents also entered four local businesses: DAS Construction Co. (Garfield Heights), Blaze Construction (Berea), Doan Pyramid Electric (Bedford Heights), and Vincore Corp. (Richmond Heights).
FBI spokesmen said they were unable to comment on the investigation and the items seized. All we know at this point is it involves some high-ranking county officials, several big local contractors and consulting firms.
Those familiar with the federal investigations have said that D-A-S Construction CEO Steven Pumper is believed to have sparked the investigation, having reportedly offered to bribe a Cleveland building inspector two months ago. The FBI supposedly tracked Pumper, arrested him, but have not yet filed charges.
Pumper, a friend to both Dimora and Russo, is now believed to be helping the FBI in a larger scale investigation, which may have led to Monday's raids.
Each of the contractors being investigated by the FBI and IRS are major players in northeast Ohio, having secured a number of very lucrative contracts. All three have done work on the Cleveland Browns Training facility in Berea, OH. D-A-S Construction and Doan Pyramid Electric are also said to have done tens of thousands of dollars in free work on Dimora's home over the past six years.
Vincore Corp. is a consulting firm operated by Frank Russo's son, Vincent Russo. It is not yet clear what his connection in the case may be.

















Comments
Kelley needs to be accountable
I cannot understand how Kelley was able to fool so many people for so long. His overtaking of the Parma School Board was seen by insiders in a negative light. The problem was that he wielded so much power that no one checked the extent to which he wielded his "club." The Parma schools lost a good number of highly qualified and excellent people because they refused to allow Kelley to run the show.
Kelly Green
When I was a child, my sister and I had a nanny who made us eat popsicles with a knife and fork.
Parma, Ohio Scandal
The FBI needs to get this guy Kelley in the interrogation room and make him break. The teaching staff have long been intimidated by this guy, and are aware of the kickbacks he has been getting from contractors and lawyers. And everyone knows that his "bosses" in organized crime ring are getting their pieces of the Parma action too. Once they get this fat readheaded guy looking at prison time, this whole scandal will be blown wide open.
This is from www.ohioschoolwatch101.com
This from www.ohioschoolwatch101.com
WAKE UP PARMA! THE DISTRICT IS A TARGET OF THE CORRUPTION SCANDAL, AND THE SCANDAL IS EXPLOSIVE.
Everyone in Cleveland is following the corruption scandal in Cuyahoga County, which appears to be focused on three government officials, Dimora, Russo, and Kelley, who appear to have been involved in some sort of kickback schemes and quid pro quo shenanigans in which they abused the public trust. The FBI raided their offices and homes and executed search warrants, including Kevin Kelley’s office at the Parma City School District where he was the Board of Education President. As recently reported in Education News (www.ednews.org) this corruption has been linked to the Parma City School District. Everyone needs to read
Parma City Schools are in rough budgetary shape. They currently are trying to pass a levy that will increase taxes significantly. The Board is rightly concerned that the levy will not pass because of the public being outraged by the Parma Board’s and Administration’s link to the corruption. Board Vice President Rosemary Gulik and other board members are campaigning for the levy, trying to divert attention from their culpability in the corruption scandal. Yes, we said “their culpability.” It did happen under their watch, and this board did allow Kelley unusual control of decision-making, which by the way he continues to wield. Why?
One of the dynamics of the Parma Board is that Kelley is the only male member. The other members are older women, who Kelley has taken to bullying. Even in recent executive session, when some of these women attempted to suggest Kelley resign for the good of the District, Kelley became verbally aggressive, which stifled the women. At that point, Kelley quickly changed the subject to forcing an internal audit, as he believes this a move that will help cover his tracks. He knows that an internal audit is not going to show that he and his fellow conspirators were given anything directly by the District. Once this internal audit is complete, he intends to waive it around in attempts defend himself. But as was laid out in the Education News piece, the corruption involved benefits that do not show up in the books of the entities being ripped off.
Parma School Board Vice President Rosemary Gulik recently was a guest on WTAM 1100 campaigning for the levy. She explained in the interview that Parma’s special education budget is $800,000 under what it needs. How does this happen, when a great percentage of special education money comes directly from the State and the Federal governments? Well, it’s simple. Litigation costs. Parma has been in continuing litigation with one family and has spent nearly $3,000,000 on that litigation, equating to about $500,000 each year. Yet the program that they are litigating over for this child only has a value of about $60,000 per year. Why would any entity pay ten times the amount of a program to lawyers instead of providing the special education services to the child? There is a great deal of talk that Kelley was getting kickbacks from the firm. (Squires Sanders and Dempsey is the firm representing the district.) And as is pointed out in the Ed News piece, Vincent Carbone (convicted of bribery recently and now alleged to be in the protection of the FBI due to affidavits provided to them as part of his plea deal in which he ratted out Kelley, Dimora and Russo) was a board member in the Orange City School District and special education litigation costs there shot through the roof, also with Squires Sanders and Dempsey being the firm involved. And all of Cleveland has observed that this firm seems to be linked to the “players” in nearly every scandal that breaks into the news, whether it is a construction related, a bond issue, or something else. The interview of Ms. Gulik can be heard on the following link:
http://www.wtam.com/cc-common/mainheadlines3.html?feed=122520&article=4107388
What makes these legal costs particularly suspicious is that the Parma Schools, throughout most of the litigation, has had insurance. The insurance company Ohio Casualty (formerly Indiana Insurance) has provided the school district an attorney to defend against the parents claim, and the insurance company has paid Britton, Smith, Kahail and Peters to provide one of their partners, Scott Peters as the attorney. Yet still, Christina Peer of the Squires firm sits at every day of hearing billing, and the Squires firm has had over 20 attorneys working on the case duplicating the work of the Britton firm. This is highly unusual. One of the primary purposes of this type of insurance is to protect a district from the cost of having to pay an attorney to defend it. What financial protection has this arrangement provided the Parma District? None. They are paying for the high cost insurance AND the attorney fees. And why has the Parma Board made this arrangement? Because it was instigated by Kelley! Does anyone really think that the scandal is only related to construction contracts?
Take a look at the double-dipping of the Parma superintendent. This superintendent is an empty chair. Kelley and the Board had complete control over administrative decision-making, including contracts, hiring, legal issue, etc. Sarah Zatik has no authority in the District, as supers do in other Districts. All she has done is agreed to sit quiet while these shenanigans go on. Her payoff? Well, when her contract expires they allow her to retire to collect her pension and then rehire her on a salary. She brings in nearly half a million dollars a year with this double dipping arrangement at taxpayer expense. A payoff for her keeping quiet about the corruption? That's what we are hearing.
Kelley made very clear that he is not resigning from the Board, despite attempts to discuss it in executive session by other Board members. Why? Because Kelley knows that he needs to stay close to Parma so he can anticipate where the investigation is going and be in a position to cover his tracks—just at Russo and Dimora have no intention of going anywhere. They have their networks of others who are involved in the corruption, and should they lose their holds on these networks, they will fall apart, and new individuals will come in and be able to expose more of the scandal.
Kelley is deathly afraid of the special education scandal coming to light, which involved the Squires firm. One of the key players in that scandal is the Director of Special Education Michelle Nolan. Nolan was brought into the District by the Board when Kelley was president. She came from Lakewood School District where she was an ill thought of low level special education administrator. Sources there indicate she had been relegated to a back room and menial tasks because of her general inabilities. Out of nowhere, and without the legally required posting for the position, she gets hired as the Special Education Director in Parma. Since then, she has been integral in driving up the District’s legal costs. Well, what might the payoff have been to Nolan? She gets brought into Parma and special arrangements had been made to allow her to take a medical leave almost immediately after she is hired. Then she returns to work and engages in a pattern of conduct that appears intended to drive up legal fees. Kelley must stay on the Board to try to protect the others who are integral players in the shenanigans. Kelley will not be stepping down from the Board.
On Kelley’s old radio show and in interviews he has had with the press in the past, he was known to often quip, “It’s for the children.” We should now be asking Mr. Kelley what part of this scandal was for the children. It really seems as if these schemes were well orchestrated by and for Mr. Kelley and the connections he has with organized crime. If Kelley really wanted to do something for the children, he’d step down from the Board of Ed, disclose all of this corruption to the FBI so that all those responsible can be held accountable.
Parma taxpayers, do you really want to funnel more of your hard earned money into the hands of organized crime?
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