Port Authority Board Member Gets 57 Months for Bribery

CLEVELAND, OH – Robert M. Peto, 58, of Gates Mills, Ohio, will spend the next four years and nine months behind bars after being sentenced today for brazenly exploiting his position on the Cleveland-Cuyahoga County Port Authority for personal enrichment. Peto, a former board member, pleaded guilty to violating the Hobbs Act, a federal charge that carries significant penalties for those who use their influence for illicit gain.

Court documents reveal a pattern of abuse stretching from December 2004 through approximately August 2012. Peto didn’t just *serve* on the Port Authority; he systematically looted it, accepting free and discounted home improvements, lavish entertainment, and even financial benefits related to a vehicle acquisition – all perks he wasn’t entitled to. The scheme wasn’t subtle; it was a calculated effort to line his pockets at the expense of the public trust.

The source of this illicit largesse? Michael Forlani and his companies: Doan Pyramid LLC and Neteam, AVI. Forlani, with an ownership stake in these firms, allegedly provided the benefits to Peto, effectively buying influence within the Port Authority. The details of exactly what Forlani received in return haven’t been fully detailed, but the implication is clear: Peto’s votes and decisions weren’t made in the public interest, but in the interest of a select few.

“This sentence shows the high cost to those who would violate the public’s trust in exchange for personal gain,” stated Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “Corruption – in this case taking bribes and utilizing his position as a board member for the Port Authority – will not be tolerated.” The FBI clearly viewed this case as a priority, sending a message that such behavior will be aggressively investigated and prosecuted.

The timeline of the criminal activity, according to court documents, runs from 2004 to October 2, 2007, suggesting a prolonged period of unchecked abuse. While the initial investigation focused on conduct up to 2007, the full extent of Peto’s actions while on the board – spanning until 2012 – raises questions about potential additional, uncharged misconduct.

Assistant United States Attorneys Antoinette T. Bacon and Nancy L. Kelley successfully prosecuted the case, built on an investigation conducted by a multi-agency task force including the Federal Bureau of Investigation, the Department of Labor, and the Internal Revenue Service – Criminal Investigation. Robert M. Peto’s 57-month sentence serves as a stark reminder that even those in positions of power are not above the law, and that exploiting public office for personal gain will result in serious consequences.

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