United States Attorney
Northern District of Ohio

Gregory A. White
United States Attorney

Ann C. Rowland
Assistant U.S. Attorneys
216-622-3600

Antoinette Thomas Bacon
Assistant U.S. Attorneys
216-622-3600

Gregory A. White, United States Attorney for the Northern District of Ohio; Cromwell A. Handy, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cleveland Field Office; C. Frank Figliuzzi, Special Agent in Charge, Federal Bureau of Investigation, Cleveland Division; and Michael McGrath, Chief, Cleveland Division of Police, announced today that Sebastian “Benny” Morabito was sentenced to 24 months in custody for bribing a public official with the Cleveland Water Department. The Court ordered Morabito to pay a fine of $20,000 and to pay restitution to the City of Cleveland in the amount of $75,000. Following his incarceration, Morabito will be placed on supervised release for two years.

This sentence follows Morabito’s plea of guilty to the charge of conspiracy to bribe a public official. In the plea agreement, Morabito, the owner and operator of Morabito Trucking and Cleveland Central Enterprise, admitted to having conspired with Norman Gore, the General Storekeeper of the Cleveland Water Department, to engage in a bribery scheme that lasted from 1998 until 2003. Morabito paid bribes in the form of cash and used cars to Gore in exchange for Morabito’s companies obtaining City business and for the approval of the payment of City funds to Morabito’s companies for shipments of slag and limestone, some of which were never actually delivered to the City. As a result of the bribes, Morabito’s companies received payments from the City of up to $500,000 per year and profited in the amount of approximately $15,000 per year.

United States Attorney Gregory White said this of the sentence imposed today, “This prosecution moves us one step closer to eliminating fraud and corruption from the City of Cleveland and restoring the community’s confidence in the integrity of the procurement process.”

Today’s sentencing follows the convictions of three former City of Cleveland Water Division employees and four 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.

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