News and Press Releases

Former Lorain Community Development Director sentenced to prison

FOR IMMEDIATE RELEASE
Aug. 17, 2012

Former Lorain Community Development Director Sanford A. Prudoff was sentenced to two years in prison for fraud, making false statements and tax charges.

Prudoff, 68, of Lorain, Ohio, was employed as Community Development Director for the city of Lorain, Ohio from 1973 through 2009. He previously pleaded guilty to five counts: conspiracy to commit mail fraud; false statements to law enforcement and three counts of false statements on a federal income tax return.

In or around 2003, Prudoff began receiving payments from Alternatives Agency on a monthly basis, purportedly for consulting work. When someone identified as Business Employee 39 (BE39) informed Anthony Calabrese that Alternatives Agency received no work product from Prudoff, Calabrese told BE39 that Prudoff was consulting on a Lorain expansion project, according to the indictment.

BE39 questioned why Alternatives Agency was paying Prudoff, since he was the Community Development Director for Lorain and it would be within his job requirements to assist companies such as Alternatives Agency, who were interested in developing facilities in Lorain. Calabrese insisted that BE39 continue to cause Alternatives to pay Prudoff, according to the court documents.

Calabrese did not inform the Alternatives board about the payments for consultants on a Lorain expansion project and the board did not approve payments to any such consultant, according to the indictment.

In or around June 2005, Calabrese told BE39 that Prudoff had some issues arise and Prudoff’s monthly payment should be issued to Relative 2, who was related to Prudoff’s girlfriend, according to the indictment.

In or around July 2005, Calabrese and Prudoff assisted Relative 2 in forming Business 46. On or about July 25, 2005, Alternatives Agency began issuing checks to Business 46 for approximately $4,000 on a monthly basis, according to the indictment.

Prudoff provided favorable consideration to Calabrese and his designees on business matter unrelated to Alternatives Agency, in return and in exchange for the consulting fees that Calabrese caused Prudoff and Business 46 to receive from Alternatives, according to the indictment.

Overall, Prudoff received approximately $116,000 from Alternatives Agency between 2004 and 2006, and failed to pay approximately $48,000 in taxes over those three years.

This case was prosecuted by Assistant U.S. Attorneys Nancy L. Kelley and Antoinette T. Bacon. The investigation was conducted by the Cleveland office of the Federal Bureau of Investigation and the Internal Revenue Service.

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