A former Copley resident is facing a seven-count indictment on charges that he stole more than $1.5 million from health-care plans he administered and using the money to pay for bonuses, operating expenses, luxury car leases and a country club membership
The United States Attorney's Office for the Northern District of Ohio announced the indictment Thursday afternoon. 61-year-old Robert Hartenstein was indicted on seven counts of theft from a health benefit program.
In 1994, Hartenstein in started Professional Benefits Association (PBA), a Cuyahoga Falls company that was a third-party administrator of health care plan benefits.
(News Release - U.S. Attorney's Office) A seven-count indictment was filed today accusing a former Copley resident of stealing more than $1.5 million from health-care plans he administered and using the money to pay for bonuses, operating expenses, luxury car leases and a country club membership, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Robert Hartenstein, 61, was indicted of seven counts of theft from a health benefit program.
"This defendant was entrusted with millions of dollars to pay for hospital stays and medical tests, but instead betrayed that trust and used his clients' money for fancy cars, lavish entertainment and his own business operations," Dettelbach said.
Hartenstein in 1994 started Professional Benefits Association (PBA), a company that was a third-party administrator of health care plan benefits. It was located in Cuyahoga Falls and had a branch office in Austintown. Hartenstein was the majority owner, chief executive officer and chairman and secretary of its board of directors.
PBA had several clients that were companies which sponsored self-funded health care benefit plans for their employees. These companies hired PBA and paid it a fee to administer their benefit plans. Hartenstein knew PBA was required by law and by contract to establish individual segregated bank accounts for each of the client companies to hold, in trust, the funds the companies sent to PBA to pay claims from medical service providers, according to the indictment.
From at least 2000 through 2010, Hartenstein caused, authorized and directed expenditures from PBA's operating account. Such expenditures included salaries and periodic bonuses to Hartenstein and PBA employees, payments to lease luxury cars and a country club membership Hartenstein used and an entertainment account Hartenstein used, according to the indictment.
A PBA employee identified in the indictment only as L.W. began regularly depositing plan funds from the companies into the PBA operating account instead of depositing those funds into the companies' respective segregated trust accounts, as required by law and PBA's contracts with the companies. This improper comingling of funds was done with Hartenstein's knowledge, according to the indictment.
Hartenstein learned in 2008 or earlier that PBA did not have sufficient funds to pay the medical service provide claims for which the companies had already provided funds in trust to PBA. When he learned of the shortfalls, Hartenstein directed PBA employees to withhold payments from service providers for increasing periods of time. Employees made up excuses for the delays at Hartenstein's direction, according to the indictment.
Hartenstein did not inform the companies of the shortfalls. Instead, he directed PBA employees to divert funds to pay for other outstanding claims. He misled PBA clients about the status of payments and why claims had not been paid. At Hartenstein's direction, PBA employees made up false excuses for lack of payment to companies or falsely claimed payment had been made, according to the indictment.
According to the indictment, the health benefit plans that Hartenstein defrauded were for the following organizations: Guyan International, Inc. dba the Permco ($501,380); Pritchard Mining Company, Inc. ($435,837); Hocking Athens Perry Community Action ($384,574); O'Bleness Memorial Hospital ($91,877); Precision Gear ($54,612); Lordstown Schools ($32,835) and the Joseph Badger Local Schools ($29,357).
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by U.S. Department of Labor, Office of Inspector General and Employee Benefits Security Administration.
If convicted, the defendants' sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant's prior criminal record (if any), the defendant's role in the offense and the characteristics of the violation.
An indictment 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.
A 14-count indictment has been filed against a Copley man who allegedly was involved in a fraudulent investment scheme which left investors with a loss of $1.8 million.
The U.S. Attorney for the Northern District of Ohio reports Anthony Davian, 34, of Copley, was charged with one count of securities fraud, two counts of mail fraud, four counts of wire fraud, and seven counts of money laundering.
Authorities said Davian used his hedge fund, Davian Capital Advisers, LLC, between 2008 and 2013 to promote and sell securities to at least 20 investors across several state. Investors ended up losing a total of $1.8 million.
((U.S. Attorney's Office)) A 14-count criminal information was filed charging a Copley man with operating a fraudulent investment scheme which caused investors to lose approximately $1.8 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Anthony Davian, 34, was charged with one count of securities fraud, two counts of mail fraud, four counts of wire fraud, and seven counts of money laundering.
“This defendant took advantage of his clients’ trust to steal from them and live the high life,” Dettelbach said. “We will continue to aggressively pursue cases in which investors are cheated out of their savings.”
The information charges that between July 2008 and July 2013, Davian used his hedge fund, Davian Capital Advisers, LLC, to promote and sell securities to at least 20 investors across several states, resulting in $1.8 million in overall investor loss.
Davian purported to sell securities in the form of shares in the various funds he created and controlled, including Davian Capital, Rubber City Gravity, Rubber City Pure Alpha, Cleveland Precious Metals Fund, and others. Instead, he used the investors’ monies to redeem earlier investors, enrich himself and pay off personal expenses, such as the purchase of an Audi Q7 Prestige, according to the information.
The investigation revealed that Davian cajoled investors’ into giving him hundreds of thousands of dollars by claiming to manage hundreds of millions of dollars to make himself appear more sophisticated than he really was and by falsifying client account statements, according to the information.
This case is being prosecuted by Assistant U.S. Attorneys Christos N. Georgalis, Matthew Cronin and James Morford following an investigation by agents of the United States Secret Service, the Internal Revenue Service and the United States Postal Service.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s 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.
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.
Local police departments received numerous calls about a low-flying plane preforming what appeared to be stunts and maneuvers Friday evening.
Copley Police Chief Mike Mier told the Beacon Journal that officers noticed the plane along the Copley-Fairlawn border around 7 p.m.
Several residents called police and reported seeing objects falling from the plane. Officers found pieces of fabric and cans of furniture polish in a parking lot on South Cleveland-Massillon Road.
No injuries were reported.
Authorities do not know any further information about the plane.
Anyone with information is asked to contact the Copley Police Department.
On the Web: www.ohio.com
A 27-year-old Copley man was killed in a motorcycle crash in Akron Thursday afternoon.
The Summit County Medical Examiner's Office reports Daniel Clouser lost control of his motorcycle and struck a semi-tractor trailer on Interstate 76 near East Avenue around 2 p.m.
Clouser was taken to Akron General Medical Center where he later died from his injuries.
An autopsy is scheduled for today
Akron police closed a portion of I-76 eastbound as crews worked to clear the scene of the accident.
Troopers believe alcohol was a factor in a three-car crash on I-77 southbound in Copley early Sunday morning.
The Canton Post of the State Highway Patrol reports a Ford Expedition, driven by Olicia Rivers, 33, of Akron, drove off the right side of the road and struck a Dodge Durango that had stopped on the berm near Rt. 21 shortly after 3 a.m.
The Durango then slammed into two people who were outside of their Chevy Cruze. The impact caused the Durango to land onto its side.
Gregory Lockett, 51, and Darmiece Washington, 38, both of Akron, suffered serious injuries and were transported to Akron General Hospital.
The driver of the Durango, Darnell Harris, 49, and his passenger, Elaine Edwards, 48, both of Youngstown were taken to a local hospital were they were treated and released.
Rita Perry, 52, and Rob Clemons, 49, both of Akron, were sitting inside the Cruze. They were treated at the scene.
Troopers did not release the condition of the Rivers.
The crash remains under investigation.
Barberton may join in at the combined dispatch center that now serves Norton and Copley Township.
The Beacon Journal reports that the 300-thousand dollar cost would be split three ways between Norton, Copley and Barberton.
Officials from Copley and Norton are already applying for a low-interest loan to pay for their share of the new dispatch consolidation, and Barberton is expected to follow suit this week.
Officials in Copley say as many as six communities were slated to consider dispatch consolidation, but only Barberton is going through with the process so far.
On the Web: Akron Beacon Journal, www.ohio.com
A Copley mother talks about the events she witnessed during the Copley Township shooting spree that killed eight including the gunman on August 7.
News Channel 5 interviewed Melonie Bagley, 28, who was thrown in the middle of the shooting, along with her three children. Bagley opened the door for 11-year-old Scott Dieter who was running towards her home screaming for help.
Bagley told News Channel 5 that god played a role during the events.
"For the life of me, I don't know why he didn't kill us, but I know god had a bigger role in it," says Bagley.
Bagley said that she saw Michael Hance following Scott and immediately closed the door and hid Scott in the basement .
Hance then shot through the home and kicked the basement door open.
"He just asked where the little boy was when we were in the basement and he had the gun to my head. He was just asking, 'Where's the little boy? I know he's here,'" Bagley recalled.
The gunman, Michael Hance killed six people prior to shooting the 11-year-old boy. He then took his own life.
"If we could re-live that day, I would still open the door because he could have died by himself. If that was my son or daughter or anybody, I would be at ease to know that somebody let him come in and he didn't die by himself," Bagley said.
On the Web: www.newsnet5.com
The causes of death for the seven victims of the Copley Township massacre on Sunday have been released.
The Summit County Medical Examiner's Office reports Russell Johson, 67, neighbor of gunman Michael Hance, died from gunshot wounds to the head and chest. Russell's wife, Gudrun Johnson, died from a single bullet to the head. Their son, Bryan, was killed by multiple wounds to the head and his daughter, Autumn, 16, suffered fatal wounds to the chest, neck and extremities. Autumn's friend, Amelia Shambaugh, 16, died from a gunshot wound to the head.
Craig Dieter, 51, died from gunshot wounds to the head. His son, Scott, 11, was shot once in the head.
Hance's girlfriend and Craig's sister, Rebecca Dieter, is recovering in a local hospital.
The shooting rampage in Copley Township has left some people wondering about the strength of Ohio's gun laws. Summit County Sheriff Drew Alexander is one of them.
The man behind the shooting spree purchased one of the two handguns he used last weekend a few days before he used it to murder seven people and wound an eighth.
"He had not been arrested and I don't believe there were any mental health issues they were aware of, so the sale of a gun to him - I don't know how you could have prevented it," said Alexander.
Alexander says he respects our constitutional right to bear arms, but thinks Ohio law needs to be tweaked to honor the constitution without putting guns in the wrong hands. Prospective gun owners have to undergo a federal background check, but Alexander would like to see a waiting period so a local background check could be conducted as well.
"It's never going to happen," said Alexander.
He says gun rights proponents would work hard to prevent any additional requirements of gun buyers.