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Federal prosecutors on Monday charged former Cleveland city councilor Basheer Jones with orchestrating a scheme to defraud multiple nonprofit organizations of hundreds of thousands of dollars during his tenure representing Ward 7 from 2018 to 2021. Jones, 40, faces two counts of conspiracy to commit wire fraud and conspiracy to commit honest services fraud, according to the U.S. Attorney's Office for the Northern District of Ohio.

Alleged Fraudulent Transactions

Prosecutors allege that Jones, alongside his romantic partner, used misleading statements to secure nonprofit funds for real estate projects under the guise of community revitalization. Instead of using the money for its intended purposes, Jones and his co-conspirators allegedly diverted the funds to enrich themselves.

“These transactions appeared to be arms-length deals to benefit the community, but in reality, the money flowed to accounts controlled by Jones and his co-schemers,” the criminal information said.

Cleveland Politician Nonprofits Fraud: Key Allegations

The charges detail several incidents, including:

• Nonprofit 1: Jones allegedly convinced the organization to hire his girlfriend’s company, King Management Group and Associates LLC (KMGA), as a community outreach consultant for $5,000 per month starting in late 2018. Over four months, the nonprofit paid $25,000, but prosecutors say little to no services were provided. Additionally, Jones obtained $50,000 from the nonprofit under false pretenses, promising to use it for a community event that never occurred.
• Nonprofit 2: Jones allegedly misrepresented his involvement in a property sale along East 66th Street, persuading the nonprofit to pay $45,000 for a property that he and his girlfriend had secretly acquired for $1.
• Nonprofit 3: In 2019, Jones allegedly arranged for city funds to purchase a distressed property, later transferring ownership to his girlfriend’s business. When Nonprofit 3 declined to buy the property due to a conflict of interest, Jones attempted to sell it through other nonprofits without success.

Broader Scheme

Prosecutors say Jones repeatedly used his position to push city ordinances facilitating the misuse of public and nonprofit funds for personal gain. The schemes often involved Jones disguising his financial interests while influencing nonprofits and city resources.

Cleveland Politician Nonprofits Fraud : Legal Proceedings

Jones, represented by Fernando O. Mack, did not immediately respond to requests for comment. Federal prosecutors Erica D. Barnhill and Elliot D. Morrison are handling the case for the government.

If convicted, Jones faces significant penalties, including prison time, fines, and restitution for defrauded nonprofits.