United States Attorney
Northern District of Ohio

Gregory A. White
United States Attorney

Ann C. Rowland
Assistant U.S. Attorneys

Antoinette Thomas Bacon
Assistant U.S. Attorneys

Gregory A. White, United States Attorney for the Northern District of Ohio, together with Jeffrey I. Cooper, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cleveland Field Office, C. Frank Figliuzzi, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation, and Michael McGrath, Chief, Cleveland Division of Police announced today that a criminal information was filed against Peter C. Zappola, age 54, of 128 Windsor Circle, Aurora, Ohio, charging him with conspiracy to bribe a public official.

According to the information, Zappola, who has held several jobs in the water supply and distribution business, conspired with Norman Gore, the General Storekeeper of the Cleveland Water Department, to engage in a bribery scheme that lasted from 2001 until 2003. The information alleges that Zappola paid bribes in the form of money and property to Gore in exchange for Zappola’s companies obtaining City business and for the approval of the payment of City funds to Zappola’s companies. Zappola has been employed by Saints Supply, US Filter and National Waterworks, Inc.

If convicted, the Defendant’s sentence will be determined by the Court under the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the Defendant’s prior criminal record, if any, his 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.

United States Attorney Gregory White said this of the information filed today, “This information is another chapter in the federal government’s continuing investigation into fraud and corruption at the Cleveland Water Department. The charge in the information sets forth not only a violation of law, but a violation of the public trust. I want to specifically compliment the agents of the IRS, the Parma Police Department, the FBI and the Cleveland Police Department for working so hard to build this important case.”

The information filed today follows the convictions of three former City of Cleveland Water Division employees and five Water Division contractors:

(1) Norman Gore, General Storekeeper at the Water Division, was convicted on April 25, 2005 and sentenced to 60 months incarceration. He was ordered to pay $1,337,597.20 restitution to the City of Cleveland;

(2) James Stallworth, Warehouse Manager at the Water Division, was convicted on November 18, 2004. Stallworth was sentenced to a 33 month term of imprisonment and ordered to pay $793,000 restitution to the City of Cleveland;

(3) Kenneth McNeil, Head Storekeeper at the Water Division, was convicted on November 17, 2004 and sentenced to 3 years probation. He was ordered to pay $10,000 in restitution to the City of Cleveland.

(4) Joseph B. Sturman, President and Owner of Victory White Metal Company, was convicted on November 22, 2004 and sentenced to 24 months incarceration, a $10,000 fine, and ordered to pay $1,156,853 restitution to the City of Cleveland. Sturman agreed to forfeit $584,705 in illegal proceeds;

(5) Samuel Petrony, Head of the Water Division at Victory White Metal Co., was convicted on November 29, 2004 and sentenced to 41 months incarceration and ordered to pay $1,949,853 restitution to the City of Cleveland;

(6) Arnold Kaufman, President of Woodhill Supply Co., was convicted on January 5, 2005 and was sentenced to 21 months incarceration and a $5,000 fine. Kaufman was ordered to pay $180,744.21 in restitution to the City of Cleveland, and Kaufman agreed to forfeit $90,372.10 in illegal proceeds;

(7) Michael Semlar, Salesperson at Woodhill Supply Co., was convicted on March 22, 2005. Semlar was sentenced to a 21 month term of imprisonment and ordered to pay the City of Cleveland $180,744.21 in restitution.

(8) Sebastian B. Morabito, owner of Morabito Trucking and Morabito Enterprises, was convicted on January 23, 2007. Morabito was sentenced to a 24- month term of imprisonment and ordered to pay the City of Cleveland $50,000 in restitution. He was also ordered to pay a $20,000 fine.

The case is being prosecuted by Assistant United States Attorneys Ann C. Rowland and Antoinette Thomas Bacon.

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.