Cuyahoga Co. official indicted

September 10, 2010 at 12:00a.m.

Associated Press

CLEVELAND

An Ohio county official at the center of a widening federal corruption investigation was indicted Thursday on charges of taking more than $1 million in bribes, including a free trip to Las Vegas, in exchange for steering county contracts and hiring political cronies.

Cuyahoga County Auditor Frank Russo was charged in a 21-count criminal information, the Cleveland U.S. attorney’s office said, which usually signals a plea deal is pending.

Mike Tobin, a spokesman for the U.S. attorney’s office, said he couldn’t comment on whether a plea deal had been struck of whether Russo would get leniency for himself or his son, who was charged earlier, in return for a guilty plea and cooperation.

Russo, a 26-year veteran of county government, resigned.

“I apologize to anyone I have harmed for any decision I made that embarrassed or caused any harm to my office,” Russo said in a two-sentence resignation letter to county commissioners.

The court filing said Russo had accepted a free trip to Las Vegas, cash and gifts, including home improvements, in return for steering county contracts, hiring cronies and lowering tax assessments.

Federal prosecutors said Russo, 60, was charged in bribery schemes beginning in 1998 through May 2009 while serving as auditor. Charges include 14 bribery-related counts, obstruction, mail fraud, conspiracy and tax fraud.

Russo’s attorney said he would not comment until today, after the Rosh Hashanah holiday.

Russo is accused of taking a bribe of $1,000 to pay for a 2008 flight to Las Vegas and $5,000 in cash for a gambling junket that included a businessman angling for $27 million in construction contracts.

According to the charges, Russo was excited about the trip arrangements after talking to the contractor.

“Don’t say anything, but we just met with the one guy who’s going to be there, he’s gonna have whores and he’s got a tiki hut by the pool, he’s got everything,” Russo said, according to the court filing.

“I heard. That’s a beautiful thing; that’s awesome,” replied a Russo office employee identified in court papers only as a close Russo friend and confidante.

Alleged conspirators arranged a $1.4 million bribery slush fund to land $21.5 million in contracts from Russo’s office for appraisal services, according to the filing. The charges also allege that he gave a $67,849-a-year job to a man who filed to run for auditor in a sham campaign that helped clear the way for Russo’s re-election.

Russo allegedly helped a part-time employee of his office land a $50,000-a-year job with Sheriff Gerald McFaul, who resigned last year and was sentenced in July to house arrest on theft in office and ethics charges.

In return, the employee provided favors to Russo, including a fundraiser for a relative elected in 2008 to the probate bench, the charges said.

“An era of corruption is coming to an end because of the work of incredibly dedicated FBI agents, IRS agents and federal prosecutors who will not rest until their work is done,” said Frank Figliuzzi, head of the FBI in Cleveland.

Since the investigation of the Democratic- controlled county government began two years ago, more than 30 people have been charged — including Russo’s son, Vincent, who pleaded not guilty in July to bribery and conspiracy. Investigators say the younger Russo conspired to trade television sets for consulting contracts. Other people charged include a former mayor of a Cleveland suburb, county employees, contractors and former school-board members.

The countywide wrongdoing alleged by investigators spurred voters to change the county government — effective next year — from three commissioners to a county executive and 11-member, elected county council.

The offices and homes of Russo and his powerful political ally and friend, county Commissioner Jimmy Dimora, were searched in 2008, the first public hint of the investigation. The two were identified early in the probe as targets.

Dimora, former county Democratic chairman, has not been charged and has denied any wronging. A message seeking comment was left at his office Thursday.

A former top aide in Russo’s office pleaded guilty last year in a scheme to arrange kickbacks in return for appraisal contracts, an allegation detailed in the first count against Russo.

Commissioners will choose an interim auditor and Democratic leaders will select a replacement to serve the remainder of Russo’s term ending Dec. 31, according to county Administrator Jim McCafferty. The elected auditor’s job will be abolished under the new county government.