Macedonia, OH – Christopher Peterson, 42, was sentenced to 12 months in federal prison and fined $3,000 on October 13, 2016, for his role in a long-running bribery and environmental crime scheme targeting the Cleveland Housing Network (CHN), a non-profit community development organization. The case, investigated by a multi-agency task force including the EPA and FBI, exposed a pattern of corruption where contractors exchanged illicit payments for lucrative CHN projects, including those involving hazardous lead abatement work.
According to court documents, Peterson, owner of Top Notch Construction, paid James Todt, a former CHN employee responsible for awarding contracts, up to $10,000 in cash between 2009 and 2014. These payments were a direct exchange for securing work with CHN. Todt also received bribes from Lizandro Orellana, owner of Modern Construction Group LLC, totaling $8,222 credited to Todt’s personal account, and benefitted from $3,650 in electrical work and approximately $8,736 in construction labor performed on Todt’s properties – all in exchange for favorable contract awards.
The investigation revealed a disturbing disregard for environmental regulations. Orellana’s Modern Construction was contracted to perform lead-based paint abatement on CHN properties. However, to cut costs and expedite the work, Orellana directed his employees to gut homes containing lead paint *without* adhering to required safety protocols or employing licensed abatement professionals. This practice exposed residents and workers to dangerous levels of lead, violating federal and state standards designed to protect public health.
Beyond the bribery, Todt was also found to have engaged in direct theft. He submitted false invoices and diverted $15,280 into his personal account. James Todt was sentenced to 30 months in prison, 36 months of supervised release, a $5,000 fine, and a $300 special assessment. Lizandro Orellana received a 30-month prison sentence and a $1,000 fine. Modern Construction Group LLC was ordered to pay a $1,600 fine and placed on probation for 60 months.
Key Facts
- Defendant: Christopher Peterson
- Location: Northern Ohio
- Years Active: 2009 – 2014
- Victim: Cleveland Housing Network (CHN) and potentially residents exposed to lead.
- Bribe Amount (Peterson to Todt): Up to $10,000 in cash
- Sentencing (Peterson): 12 months imprisonment, $3,000 fine
Legal Violations & Penalties
Peterson, Orellana, Todt, and Modern Construction were found to have violated multiple federal statutes, including:
- Title 18 U.S. Criminal Code, Section 2: Aiding and abetting, conspiracy to commit bribery.
- 15 U.S.C. 2615(b) – Toxic Substances Control Act: Violations related to improper lead-based paint abatement procedures.
- 18 U.S.C. 666(a)(1)(A): Bribery of a program receiving federal funds.
- 18 U.S.C. 371: Conspiracy to commit offenses against the United States.
Penalties ranged from fines and probation for the company to lengthy prison sentences and significant fines for the individuals involved, reflecting the seriousness of the offenses and the potential harm caused by their actions.
The case underscores the importance of rigorous oversight of federally funded projects and the potential for environmental damage when safety regulations are ignored in pursuit of profit. The multi-agency investigation highlights a coordinated effort to combat corruption and protect vulnerable communities from hazardous conditions.
Source: EPA ECHO Enforcement Case Database
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