Cleveland, Ohio – Basheer Jones, a former Cleveland city councilman who represented Ward 7, has been charged with two counts of conspiring to commit wire fraud and honest services fraud. According to federal prosecutors, Jones allegedly abused his position as a public official from December 2018 to June 2021, using fraudulent schemes to divert more than $200,000 from community stakeholders for his personal financial gain.
Allegations of Misusing Nonprofit Funds
Court documents allege that Jones misrepresented and concealed material facts to persuade nonprofit organizations to engage in financial agreements under the pretense of benefiting the City of Cleveland and revitalizing Ward 7. However, instead of directing funds toward community projects, Jones funneled the money into bank accounts controlled by his romantic partner and co-conspirator, ultimately benefiting himself and his associates.
One scheme involved a nonprofit being advised by Jones to hire a “consultant” for community outreach. Unbeknownst to the nonprofit, this consultant was Jones’s romantic partner, who submitted a proposal requesting $5,000 per month. Investigators later found that she provided little to no services to the nonprofit in exchange for the payments.
In another instance, Jones convinced the same nonprofit to pay $50,000 to fund a community event, which was supposed to include buying backpacks for schoolchildren. Jones falsely assured the nonprofit that the city would reimburse them for these expenses. However, the event never took place, and Jones directed his romantic partner to distribute the money between herself, him, and others involved in the scheme.
Fraudulent Property Deals
Jones also orchestrated fraudulent property transactions under the guise of community development. He sought nonprofit funding to rehabilitate distressed properties without disclosing his financial interests in them.
In one case, Jones facilitated a bribery scheme involving a dilapidated property on Superior Road. He arranged for his romantic partner and other co-conspirators to acquire the property at minimal cost. Using his position as councilman, Jones sponsored ordinances allocating city funds to buy and rehabilitate the property. When a nonprofit declined to purchase the property, Jones transferred it to his romantic partner’s consulting business and attempted to sell it to the nonprofit for $80,000. This scheme ultimately fell apart when the nonprofit refused to proceed.
However, Jones and his partner succeeded in a separate property transaction. They misled another nonprofit into believing they were purchasing a property directly from its original owner. In reality, Jones and his partner acquired the property for only $1, with an unpaid $40,500 demolition bill, and immediately resold it to the nonprofit for $45,000, pocketing the proceeds.
Investigation and Legal Proceedings
The FBI Cleveland Division, along with the U.S. Department of Housing and Urban Development Office of the Inspector General and IRS Criminal Investigation, conducted a thorough investigation into Jones’s schemes. The case is being prosecuted by Assistant U.S. Attorneys Erica Barnhill and Elliot Morrison for the Northern District of Ohio.
The charges against Jones include allegations of wire fraud, honest services fraud, and bribery. While the allegations are serious, Jones is presumed innocent until proven guilty in a court of law. The burden of proof rests with federal prosecutors, who must establish his guilt beyond a reasonable doubt.
Potential Sentencing
If convicted, Jones’s sentence will depend on several factors, including the specifics of the case, his role in the offenses, and any prior criminal record. While the statutory maximum penalty for these crimes can be severe, actual sentences are often lower, determined by the court after reviewing the circumstances of the case.
Commitment to Accountability
This case underscores the commitment of federal agencies to holding public officials accountable for abusing their positions of trust. Public corruption cases such as this not only involve financial losses but also undermine the confidence of communities in their leaders and institutions.
The investigation into Jones serves as a reminder of the importance of transparency and ethical governance, particularly when managing public and nonprofit resources intended to benefit the community.
