Rebecca C. Lutzko United States Attorney for the Northern District of Ohio | U.S. Attorney for the Northern District of Ohio
Basheer Jones, a former Cleveland City Council member, has been sentenced to 28 months in federal prison. U.S. District Judge J. Philip Calabrese handed down the sentence following Jones' guilty plea to charges of conspiring to commit wire fraud and honest services fraud. He was found guilty of using his position for personal financial gain and attempting to defraud community stakeholders out of more than $200,000. In addition to prison time, Jones has been ordered to pay $143,598.47 in restitution and will serve three years of supervised release after his imprisonment.
The court documents reveal that from December 2018 to June 2021, Jones persuaded various local nonprofits to enter into schemes that benefitted him and his romantic partner, who was also his co-conspirator. Using pretenses of redeveloping Cleveland's Ward 7, Jones secured funds from nonprofits. He concealed his personal ties to his partner to avoid detection.
“Mr. Jones used his position to dishonestly line his pockets with tens of thousands of dollars,” noted Acting U.S. Attorney Carol M. Skutnik for the Northern District of Ohio. “He betrayed the city of Cleveland and its citizens, who elected him to serve as a leader in our community. With his deceptive actions, he also violated federal laws. Anyone who thinks they can use a public office to defraud nonprofits and obtain bribes will face consequences and pay the price for those decisions, and my office will prosecute you to the fullest extent of the law.”
The operations involved convincing nonprofits to channel funds towards supposed Ward 7 revitalization projects, which instead flowed into accounts controlled by Jones’ partner. Subsequently, instructions were given for funds to be diverted to Jones, his partner, and others selected by him. In one instance, Jones manipulated a nonprofit to pay for services rendered by his partner under the pretense of community outreach, unbeknownst to the organization.
Further fraudulent activities included coaxing $50,000 from a nonprofit under the ruse of planning a community event. Promises were made for reimbursement by the city, none of which materialized into either an event or repayment.
FBI Cleveland Acting Special Agent in Charge Charles Johnston weighed in, “Public corruption at any level of government will not be tolerated. Jones abused his position of trust for personal gain while scheming against the people he was elected to serve, including non-profit entities and well-meaning leaders. Elected officials who demonstrate a reckless disregard for violating the oath they swore to uphold is detestable. Today’s sentence underscores the FBI’s commitment to ensuring that those who engage in fraud and corruption will be investigated and held accountable. We will continue working with our law enforcement partners to root out corruption and ensure elected officials are serving with honesty, fairness, and integrity.”
Jones also devised real estate schemes, including a bribery tactic intended to leverage his position to facilitate fraudulent property transactions. These plans were aimed at acquiring city funds through manipulated nonprofit dealings. In pursuit of such arrangements, Jones arranged for properties to be co-owned with his partner, engineered city fund allocations, and engaged in dubious sales—all schemes inevitably scuttled or exposed.
“Basheer Jones abused his position of trust by deliberately engaging in fraudulent schemes to divert HUD money – funds meant to improve the community— for his own personal gain,” responded Special Agent in Charge Shawn Rice with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General. "HUD OIG will continue to work with the U.S. Attorney’s Office and law enforcement to investigate and hold accountable bad actors who exploit HUD-funded programs for their own benefit.”
The case was jointly investigated by the FBI Cleveland Division, HUD Office of the Inspector General, and the IRS – Criminal Investigation. Prosecution is being conducted by Assistant U.S. Attorneys Erica Barnhill and Elliot Morrison for the Northern District of Ohio. Reports of fraud can be made to justice.gov/action-center/report-crime-or-submit-complaint.
