Russell W. Spitz, Bank and Wire Fraud, Ohio, 2023

MASSILLON, OH – A Jacksonville, Florida man is facing serious federal charges after allegedly ripping off Fifth Third Bank for approximately $4 million. Russell W. Spitz, 75, was indicted this week on one count of bank fraud and three counts of wire fraud, according to United States Attorney for the Northern District of Ohio, Steven M. Dettelbach.

The scheme, prosecutors allege, unfolded between December 2006 and August 2008. Spitz, operating his company Vision Power Systems, secured funding for a biomass boiler project intended for FiberCorr, a corrugated paper company in Massillon, Ohio. The boiler was supposed to slash energy costs by providing heat and steam for the paper mills. While the Stark County Port Authority financed the project, Fifth Third Bank provided a crucial letter of credit, guaranteeing the bonds – and ultimately, becoming the target of Spitz’s alleged deception.

According to the indictment, Spitz allegedly fed Fifth Third Bank a steady stream of fraudulent documents during the loan negotiations. The bank, relying on these false representations, approved a loan and disbursed roughly $4.1 million to Vision Power Systems. But the money, authorities claim, never made it to the construction site. Instead of funding the boiler’s construction, Spitz allegedly diverted the funds for other purposes.

The result? Construction ground to a halt in 2008, and the biomass boiler was never completed. FiberCorr was left without the promised energy savings, and Fifth Third Bank was stuck with a $4 million loss. The indictment paints a picture of a project built on lies, a classic case of alleged fraud preying on legitimate business interests.

Assistant U.S. Attorney Chelsea S. Rice of the Cleveland U.S. Attorney’s Office is prosecuting the case, built on an investigation conducted by the Federal Bureau of Investigation. The court will determine Spitz’s sentence if convicted, taking into account his criminal history (if any), his role in the alleged scheme, and the specifics of the violation.

It’s crucial to remember: an indictment is not a conviction. Spitz is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The government bears the burden of proof, and Spitz is entitled to a fair trial to defend himself against these serious allegations. Grimy Times will continue to follow this case as it develops.