Opinion ID: 2976408
Heading Depth: 4
Heading Rank: 1

Heading: East Cleveland, Ohio

Text: Gray was convicted on Counts 2 through 9 of the superseding indictment, which alleged Hobbs Act violations as they related to Gray’s transactions with Emmanuel Onunwor, the mayor of East Cleveland from 1998 to 2004 and a former city councilman.11 Count 2 averred a Hobbs Act conspiracy by Gray, Onunwor, and others, including “public officials in East Cleveland, Gray’s clients, and Gray’s consulting associates,” stemming from an alleged agreement by Gray and the others to provide things of value to public officials, including Onunwor, in return for official acts involving the governance of the City of East Cleveland. The related substantive Hobbs Act counts (Counts 3-9) each alleged that on a specific date, Gray and others, “aiding and abetting each other, attempted to and did obstruct, delay, and affect commerce . . . through extortion, by Emmanuel Onunwor obtaining, under color of official right, cash in an envelope from Nate Gray with his consent.” The evidence indicates that when Onunwor began experiencing financial difficulties in 1994, Gray provided him with cash on several occasions, and, after Onunwor was elected mayor, Gray and Onunwor formed a “business relationship,” pursuant to which Onunwor received payments from Gray to influence his decisions as mayor and steer municipal contracts to Gray. At monthly meetings, recorded by a surveillance camera in Gray’s office, Gray handed Onunwor envelopes containing $700 to $1,000 in cash. Onunwor testified that payments he received from Gray after his election as East Cleveland’s mayor were “bribes” that “influenced [his] decision to make sure that those contracts” went to Gray. Onunwor also testified that he took specific official actions in exchange for the payments. There was overwhelming evidence that Gray’s monthly cash payments to Onunwor were funded by entities seeking to obtain or retain contracts with the city. In one instance, East Cleveland contracted with a local law firm to assist in the collection of overdue income taxes. After Gray discussed the law firm’s contract with Onunwor, Onunwor advised the law firm partners that if they wanted to keep the contract, they needed to work with Gray. Thus, in May 1998, the law firm entered into a “consulting agreement” with Gray, pursuant violence, or fear’ in the course of this bribery scheme,” Brock, 501 F.3d at 767. 10 Gray was acquitted of, and Jackson was not charged with, Hobbs Act violations emanating from interaction with public officials in the fourth city, Cleveland, Ohio. 11 Jackson was not alleged to have been involved in the East Cleveland conspiracy. Nos. 05-4482; 06-3086/3209 United States v. Gray, et al. Page 17 to which the firm made an initial $2,500 payment to Gray and monthly payments of $1,000 thereafter, for a total of $55,500 during the course of the four-year agreement with Gray. The law firm’s tax collection contract continued until 2002, when it was phased out in response to a state audit, which found an alternative, less expensive agency to perform these functions. Four days after the state audit report was issued, the law firm terminated its consulting agreement with Gray. Gray also approached Onunwor about finding municipal work for another client, Ralph Tyler Company (“RTC”), a Cleveland engineering firm. In response, Onunwor dismissed the company that had an existing engineering contract with the city, replaced it with RTC, and awarded engineering contracts to RTC. After the city’s professional services agreement with RTC took effect, Gray increased the amount of his monthly payments to Onunwor to $700. When Onunwor asked Gray for $8,000 to $9,000 to finance a trip to Africa, Gray responded that he would “talk to Ralph [Tyler] about it” and eventually gave Onunwor the money. Another engineering firm, CH2M Hill (“CH2M”) contracted with East Cleveland to run the city’s water department after Gray set up the initial meeting between CH2M representatives and Onunwor. Onunwor insisted that the city council approve the contract with CH2M without seeking bids from other companies. From January 2002 through early 2003, CH2M paid RTC, which had no involvement in the water contract, a monthly fee for “consulting services.” RTC passed the payments directly to Gray’s company, ETNA Associates. CH2M initially paid RTC $2,000 each month, and RTC added $1,000 from its own account, paying Gray $3,000. The monthly payments from CH2M eventually increased to $10,000, all of which went to Gray. After the city contracted with CH2M, Gray increased his payments to Onunwor to $1,000 each month. A state audit later determined that the city’s contract with CH2M cost more than twice as much as it would for the city to operate its water services internally. This abundant evidence of Gray’s illicit transactions with Onunwor and third parties clearly shows that Gray conspired with, and aided and abetted, Onunwor’s extortion of “property from another, with [their] consent,” by funneling payments from Gray’s clients, seeking municipal contracts, to Onunwor while he was acting under color of official right. Thus, the evidence is sufficient to sustain Gray’s convictions on Counts 2 through 9 of the superseding indictment.