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Former Ohio Edison Manager Charged with Mail Fraud
"CLEVELAND -- A former Warren area manager for Ohio Edison, Gregory G. Petrasek, today was accused of devising a scheme with an unnamed Warren city official to defraud Erie Insurance Group, Avalon South Golf Club and Ohio Edison.Petrasek was charged with one count of mail fraud. The charge, announced late this afternoon by the U.S. attorney for the Northern District of Ohio, was filed by information, which means Petrasek was not indicted by a grand jury and is likely cooperating with investigators. The government alleges that Petrasek filed a false proof of loss with his insurance company that claimed that his golf clubs and other items had been stolen from his car. The insurance company paid $4,384.44 on the false claim, according to Gregory A. White, U.S. attorney. Petrasek then purchased new clubs and other equipment from Avalon South Golf Club and arranged to pay for the clubs by manipulating the books and records of Ohio Edison to reflect $3,000 in fraudulent credits on the Avalon South electric bills. The scheme involving the Ohio Edison executive allegedly began in June 1999 when Petrasek and the unnamed city official reported to the Trumbull County sheriff's office that golf clubs and other personal items belonging to Petrasek and the city official had been stolen from Petrasek's car -- when they both "knew only the golf clubs and other personal items belonging to the city official had been stolen," the government states.According to the six-page information, Petrasek then ordered golf clubs and other items from the pro shop at Avalon South "for which he received an invoice of $2,469.49 to be used in filing his insurance claim. The city official also ordered from Avalon South golf clubs and other items for which he received an invoice of $2,110.26 to be used in filing his insurance claim."Petrasek filed a proof of loss claim with Erie Insurance Group July 21, 1999; the city official also filed a proof of loss claim that day with Westfield Insurance Co., the government claims.Erie Insurance subsequently paid Petrasek $4,384.44, based on his false claim that the stolen clubs were expensive Ping clubs, according to the information. Westfield paid the city official $2,525.When the manager of Avalon South Golf Course later asked the city official when payment would be received from him and Petrasek, "The city official arranged for [Petrasek], then employed as the Warren area manager at Ohio Edison, to credit the Avalon South accounts at Ohio Edison for $3,000 in return for the clubs and other items."Later, in January 2002, Petrasek also "caused the books and records of Ohio Edison to be manipulated so that a credit of $640 on the city official's residential account would be made," according to the information.As a result, "Ohio Edison lost approximately $3,640 by issuing credits to Avalon South and to the city official; Erie Insurance Group lost $4,384.44 by issuing a check for a theft loss that had not occurred; and Avalon South lost $1,579.95."The Avalon South Golf Club is owned by the city of Warren. A contractto demolish its contract clubhouse facility was cited in federalbribery charges that named the city's former building inspector, JamesLapmardo, who has since pleaded guilty.The mail fraud charge against Petrasek results from the FBI's public corruption task force investigation that centers on Trumbull County, said White. No date has been set for Petrasek's arraignment; his case has been assigned to Judge Solomon Oliver Jr."