Former Cleveland City Councilmember Basheer Jones was charged Monday by federal prosecutors in Cleveland with fraud while he held public office, benefiting from money paid by local nonprofits.
"Jones deceptively advised nonprofits to provide funding to move community projects forward or to hire a purported 'consultant,' with the full knowledge that the funds would flow back to himself,' reads a statement issued by the U.S. Attorney for the Northern District of Ohio.
Ideastream Public Media reported in 2022 that the Famicos Foundation, a nonprofit community development corporation that works in Cleveland's Hough and Glenville neighborhoods, received a subpoena seeking documents related to its work in Ward 7. The city also was subpoenaed for information related to Famicos Foundation and Lexington Bell Community Center.
The FBI Cleveland Division, the U.S. Department of Housing and Urban Development Office of the Inspector General, and the IRS – Criminal Investigation unit investigated the case. Jones is charged with conspiracy to commit wire fraud and conspiracy to commit honest service mail fraud.
Prosecutors allege Jones conspired with his romantic partner to bilk nonprofits out of money with a number of schemes. One included hiring his romantic partner as a consultant.
"Jones recommended that a nonprofit hire a consultant for community outreach. Unbeknownst to the nonprofit, the 'consultant' ... was Jones’s co-conspirator and romantic partner," the U.S. Attorney's statement reads.
At Jones's request, according to prosecutors, she requested $5,000 per month. Prosecutors say she didn't provide "substantial services" in exchange for payments she received.
The same nonprofit, according to prosecutors, paid $50,000 for a community event that would include backpacks for students. Jones promised the city would reimburse the organization, but after payment, no event was held and Jones directed his romantic partner to divide the money between themselves and others associated with the scheme.
Prosecutors laid out another scheme in which Jones pushed for legislation to fund nonprofits so they could purchase and renovate distressed housing, while his romantic partner was the owner of the property.
Jones represented Ward 7 on the city's East Side in 2018 and 2019. Prosecutors say his alleged criminal activity occurred from December 2018 to June 2021.
Prosecutors described the charges as an "information," which usually indicates the defendant intends to plead guilty.
