STATEMENT OF FACTS US v Steven E. Dean

DoD DCIS SA Jim Terbovich

In May of 2012, the Columbus Police Department (CPD) learned of allegations that then CPD Police Officer Defendant Steven Edward Dean, misappropriated, misapplied and embezzled property through CPD's participation in a program which provided used military equipment to law enforcement agencies.

The United States Department of Defense utilizes the Defense Logistics Agency (DLA) to transfer surplus property received from the military to federal, state and local law enforcement agencies at no cost. The DLA entity which operates this particular program is known as the Law Enforcement Support Office. The program through which this property is made available is commonly referred to as the Defense Reutilization Marketing Office (DRMO) program.

Dean was an agent of CPD for purposes of obtaining equipment from the DRMO program for the benefit of CPD. In a one-year period oftime, CPD received federal benefits in excess of $10,000.

The investigation by CPD, the FBI and U.S. Department of Defense Criminal Investigation Services concluded that between October 1, 2005 and June 1, 2012, Dean diverted property with a fair market value of$251,570.94 from the DRMO program. This included: $133,554.59 of heavy equipment, construction equipment and vehicles stored at Columbus Diesel and Eastland Towing in Columbus, Ohio; $7,489.95 of restaurant equipment; $94,163.25 of materials sold for scrap; and $16,353.15 items sold to private persons including diesel generators. This conclusion was based on records obtained from the U.S. Department of Defense DRMO program, the State of Ohio offices involved with the DRMO program, scrapyard receipts, Craigslist online point-of-sale website records, restaurant supply records of sold equipment, and by viewing the items of property themselves.

All of the above intentionally misapplied property was either in the care, custody or control of CPD or belonged to the United States.

CPD's initial investigation into this matter revealed that between June of2010 and May of2012, a janitor with the City of Columbus received $94,173.25 by scrapping DRMO program materials at several different scrap yards in Columbus. The janitor was subsequently interviewed and admitted that he had scrapped DRMO program materials and that he did so with the consent of Dean. The janitor stated that he kept approximately $30,000.00 of the money that he received from scrapping DRMO program materials. The janitor claimed to have put the rest of the money into a "kitty" at the CPD warehouse where Dean worked. Such intake and expenditure of cash is against CPD policy and no records or authorizations exist to support Dean's practices.

Case: 2:13-cr-00283-MHW-TPK Doc #: 23-1 Filed: 02/07/14 Page: 1 of 2 PAGEID #: 65

Dean was interviewed and acknowledged he was the individual responsible for CPD's participation in the DRMO program. Dean claimed that he did not personally receive any of the money from scrapping DRMO program materials, rather, Dean claimed he used cash from scrapping for operating costs of running CPD's involvement in the DRMO program.

In early 2012, CPD placed Dean on paid administrative leave, terminated CPD's participation in the DRMO program and shut down the warehouse where Dean administered CPD's involvement in the DRMO program.

After Dean was placed on paid administrative leave and the DRMO warehouse was shut down, media outlets reported on CPD's participation in the DRMO program and noted the investigation. Following media reports, tips were obtained including an allegation of use and storage of DRMO program equipment at various business locations not associated with the DRMO program or CPD. Twenty-three (23) DRMO program items were recovered with a total fair market value of$133,554.59 from various business locations in Columbus. DRMO program items recovered included diesel generators, fork lift trucks, semi trailers, skid steer loaders, tractor trucks and cargo trucks. None of the business locations where the heavy equipment DRMO program items were recovered had legitimate authority to possess such items by CPD or the DRMO program, other than the personal relationships each had with Dean.

The investigation revealed four DRMO items Dean had sold to a Columbus restaurant equipment supply company. Records indicate these items were acquired by Dean through the DRMO program in May of2011 and sold to the restaurant supply company just days after they were originally acquired by Dean through the DRMO program ..

The investigation also concluded that 12 DRMO items, including large diesel engines, a paper cutter, a chain hoist, a grinding machine and a four wheel scooter, all were sold on Craigslist for $16,353.15. Dean had a personal for-profit business arrangement with the person who sold the DRMO program items on Craigslist.

All of the above acts substantially occurred within the Southern District of Ohio.

Case: 2:13-cr-00283-MHW-TPK Doc #: 23-1 Filed: 02/07/14 Page: 2 of 2 PAGEID #: 66