01/02/2025 | Press release | Distributed by Public on 01/02/2025 16:13
CLEVELAND - In the fiscal year 2024 (FY 2024), the U.S. Attorney's Office for the Northern District of Ohio collected $27,882,120.34 in civil and criminal actions. Of this amount, $12,537,202.34 was collected for civil damages, penalties, and interest owed to the United States, while $15,344,918 was collected for criminal restitution to victims of federal crime.
In addition to those amounts, the U.S. Attorney's Office (USAO), working with partner agencies and divisions, also separately forfeited in FY 2024 $7,701,470 in assets connected to criminal activity, with more than $50M in additional assets still pending forfeiture orders. Forfeited assets are deposited into the Department of Justice Asset Forfeiture Fund or the Treasury Asset Forfeiture Fund and used to restore funds to crime victims and for various law enforcement purposes.
Accordingly, the U.S. Attorney's Office collected a combined $35,583,590.34 in FY 2024.
"Every year, dedicated USAO employees work hard to collect debts owed to the government based on false claims, environmental damage, controlled-substance violations, and the like, and return that money to the U.S. taxpayers. They also work to recover money for victims of crime to make them whole and ensure that justice is served from a financial perspective," said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. "The USAO's FY 2024 collection efforts were tremendously successful, and we remain committed, in 2025 and beyond, to using all available legal remedies to collect restitution for victims and recover taxpayer dollars improperly taken through fraud, waste, and abuse."
Notable collections in FY 2024 include:
Civil Cases
Cleveland Clinic Foundation - Payment of $7,600,000 to settle False Claims Act allegations relating to federal grant applications and progress reports. That amount is now paid in full.
Ohio Refining Co., Chevron USA Inc., Energy Transfer (R&M) LLC, Pilkington North America Inc., and Chemtrade Logistics Inc. - Payment of $7,282,518.92 to settle allegations of historic industrial pollution discharges near Toledo. That amount is now paid in full.
Republic Steel - Payment of a civil penalty as part of a consent decree to settle Clean Air Act allegations. Republic Steel paid $1,051,169.49 as part of the consent decree, which also included air pollution reductions.
Criminal Cases
U.S. v. Aydin Kalantarov - Defendant was sentenced in May 2023 for conspiring to commit wire fraud and aggravated identity theft. The court ordered Kalantarov to pay $7,799,400.00 in restitution to the Small Business Association (SBA). In January 2024, the USAO facilitated the transfer of $5,624,627.21 in forfeited funds to the Clerk of Courts for payment to the SBA.
U.S. v. Matthew Maluchnik - Defendant was sentenced in October 2023 for committing healthcare fraud and making false statements on his tax returns. The court ordered him to pay $941,068.50 in restitution. In April 2024, the USAO facilitated the transfer of $715,979.50 in forfeited funds to the Clerk of Courts for payment to Maluchnik's victims.
U.S. v. Christopher Hardin - Defendant was sentenced in September 2019 for committing mail fraud and was ordered to pay $671,699.73 in restitution to over a dozen victims. In FY2024, the USAO collected $655,574.73 from Hardin for his victims.
The 94 U.S. Attorneys' Offices across the country, along with the Department of Justice's litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.
While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department's Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Jessica Salas Novak