Ex-development organization leader charged in Ohio

Thursday November 8, 2012 5:15 PM

CLEVELAND (AP) — The former executive director of a nonprofit community development organization in Cleveland has been charged with stealing more than $580,000 from the group.

Thomas Newman of Cleveland was charged Thursday in a federal court filing with money laundering and theft and embezzlement involving federal programs.

The criminal information, which usually signals a pending plea deal, said the 65-year-old Newman made personal use of Flats Oxbow Association funds.

The association obtained federal funds to promote development in the riverfront Flats district at Cleveland's downtown edge.

Newman's attorney, Kevin Spellacy, said Newman has reached a plea deal but declined to specify the terms. Spellacy said his client "is a very sick man right now," but declined to elaborate.

The association closed last year when investigators began checking into financial irregularities.

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