U.S. Attorney Rebecca C. Lutzko | U.S. Department of Justice
Basheer Jones, a former Cleveland City Council member, faces charges of conspiring to commit wire fraud and honest services fraud. The allegations claim that Jones used his position for personal financial gain, defrauding community stakeholders of over $200,000.
Court documents suggest that from December 2018 to June 2021, Jones allegedly misled nonprofit organizations into arrangements benefiting him and a co-conspirator who was also his romantic partner. He reportedly sought funds under the pretense of community projects in Ward 7 but redirected them to accounts controlled by his partner.
The charges state that Jones advised nonprofits to fund community initiatives or hire consultants while knowing the money would return to him. In one instance, he suggested hiring a consultant for outreach work. This consultant turned out to be his partner, who charged $5,000 monthly without providing significant services.
Jones is accused of further defrauding a nonprofit by requesting $50,000 for an event that never occurred. Instead of hosting the event, he allegedly divided the funds with his partner and other associates.
Other accusations involve real estate schemes where Jones concealed financial interests in distressed properties. In one case on Superior Road, he supposedly orchestrated property acquisitions through partners using city ordinances for funding. When unable to secure nonprofit cooperation for these transactions, he transferred ownership within entities linked to him and attempted resales at inflated prices.
The investigation revealed another instance where Jones facilitated a property sale at minimal cost only for it to be resold immediately at a higher price without disclosing obligations like demolition fees.
These allegations remain unproven until trial concludes with guilt established beyond reasonable doubt. Sentencing will consider various factors if convicted but won't exceed statutory limits.
The FBI Cleveland Division led this investigation alongside the U.S. Department of Housing and Urban Development Office of Inspector General and IRS – Criminal Investigation unit. Prosecutors Erica Barnhill and Elliot Morrison represent the Northern District of Ohio in this case.
To report related fraud cases: justice.gov/action-center/report-crime-or-submit-complaint
