James Todt, Cash Bribery and Kickbacks, Ohio 2022

Cash bribes and kickbacks have plagued taxpayer-supported projects in Northeast Ohio, and the latest scheme to come to light involves a former Cleveland Housing Network official and two contractors.

James Todt, 49, of Brecksville, was charged with cash bribery and kickbacks in a four-count criminal information filed in federal court. Todt, who worked at the Cleveland Housing Network from 2005 to 2014, was accused of soliciting and accepting cash bribes from contractors Lizandro Orellana and Chris Peterson in exchange for awarding them contracts for various projects.

Todt’s duties at the Cleveland Housing Network included supervising inspectors and project managers, as well as awarding contracts on various projects. He allegedly provided Orellana, the owner of Modern Construction Group LLC, with the non-profit organization’s internal cost projections for various projects, which were used to evaluate a contractor’s bid.

Orellana paid another person to do $3,650 worth of electrical work at Todt’s home in November 2012, and provided a crew of six Modern employees to construct a deck and install windows at his home in October 2013. The labor cost related to the deck and windows was valued at approximately $8,736.

Peterson, the owner of Top Notch Construction, paid Todt up to $10,000 in cash in exchange for CHN work that Todt awarded to Top Notch. Todt also submitted false invoices and caused two checks totaling $15,280 to be deposited into his personal account.

Additionally, Orellana was accused of directing employees to gut homes containing lead-based paint without following abatement procedures. The employees were not licensed to perform lead-based paint abatement, which Orellana knew. He also ordered items covered in lead paint to be removed and dumped.

“Sadly, cash bribes and free home improvements from contractors looking to get work on taxpayer-supported projects have not been eradicated from Northeast Ohio,” said Acting U.S. Attorney Carole S. Rendon. “Mr. Orellana also showed no regard for his employees, the environment or our community’s general well-being when he ordered items covered in lead paint to be removed and dumped.”

The charges were filed by the Federal Bureau of Investigation’s Cleveland office, and the case is ongoing. The FBI, along with its partners, will continue to investigate fraud against federally funded programs intended to help those in need.

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