Trending
COLUMBIANA -- A Leetonia man with plans for business in the city is under federal investigation for alleged money laundering and faces possible forfeiture of nearly $3 million and several customized vehicles.
According to a complaint filed with the U.S. District Court on March 22, the forfeiture was ordered as part of a federal investigation against Ryan Sheridan, owner of the former Braking Point Recovery Center in Austintown.
Sheridan had approached the Columbiana Planning Commission on March 13 requesting approval to open a pool hall in a portion of 103 S. Main St., a former antiques store.
Sheridan said he would rent out five tables per hour during afternoon and evening hours on weekends. The commission approved the site plan review.
On Wednesday, WFMJ Channel 21 reported that the federal judge assigned to the case granted a joint motion from the U.S. attorneys and lawyers for Sheridan to stay a motion that would force him to forfeit the money and five vehicles that include replicas of the DeLorean featured in the movie "Back to the Future," the Batmobile and the Ghostbuster hearse.
The judge's order suspends the forfeiture effort pending completion of the criminal investigation, according to the report.
Sheridan has not been charged at this point.
According to the federal complaint, Sheridan founded Braking Point in 2015 in Austintown as a drug and alcohol rehabilitation center that provided intensive outpatient treatment, day treatment and supplemental living rehabilitation.
Sheridan held 100 percent ownership of the company, in addition to Braking Point Health and Fitness, LLC, and Braking Point Recovery Housing, LLC, both formed in early 2016.
Sheridan also formed several other companies over the following years for the purchase of properties, vehicles and restaurant management, according to court records.
Court documents said an investigation was launched in late 2016 following hotline complaints from former Braking Point employees and a large volume of Medicaid reimbursements.
The complaint also alleged that between 2015 and 2017 Medicaid paid out more than $31 million on more than 134,000 claims to Braking Point.
Insurance billing was done by Sheridan's ex-wife, who was not identified by name in the complaint.
The complaint also said the facility was not properly licensed.
Investigators executed a federal search warrant at Sheridan's Spring Hill Drive home in Leetonia in October and seized money and cars.
The FBI began an administrative forfeiture proceeding that same day.
Both Braking Point facilities in Austintown and Whitehall were shut down last year.
Attempts to reach Sheridan on Wednesday were unsuccessful.
kwhite@mojonews.com