Last week I reported on the questionable transfer of a house owned by the Buckeye Shaker Community Development Corporation to Kevin Johnson, the so-called son of former Cleveland Councilman Ken Johnson.
Public records in the county recorder’s office show a deed effectuating the transfer of the property dated in 2017 just seven days after the property had been transferred to Buckeye Shaker from the county land bank. Mysteriously, on April 27th of this year, someone took the deed to the recorder’s office and filed it. As I pointed out, the recording of the deed was after both Johnson and Buckeye Shaker director John Hopkins were indicted by a federal grand jury on various charges of fraud in connection with the development corporation and tax evasion.
I am happy to report that the system works, and it appears that the attempted gift of an $85,000 house on Becket Road, in Cleveland’s Ludlow district, to the son of a now-convicted public official will not happen.
Back in 2015, after Buckeye Shaker Development Corporation defaulted on payments to the City of Cleveland, the city law department filed a lawsuit to recover monies paid out in loans and other funds channeled to the CDC. The pending lawsuit went unresolved for a few years, but in 2019, the common pleas court appointed a receiver to marshal the assets of the corporation and attempt to pay off the corporation’s debt.
According to lawyers for the receiver, when they were appointed, they took an inventory of all the properties owned by Buckeye Shaker. At that time, the Becket Avenue house was in the name of Buckeye Shaker — which was still receiving the tax bills. The recording of the deed transferring the property to Kevin Johnson was after the date of their appointment. Therefore, they do not recognize the attempted transfer. The receivers have an obligation to gather all the assets and they do not intend to allow a $85,000 house slip through their hands.
A recent docket entry shows that the receiver sold twelve vacant houses, formerly owned by Buckeye Shaker, to Habitat for Humanity, which has an excellent record of rehabilitating houses and putting them in the name of deserving members of the community — which should have been the aim of Buckeye Shaker.
Recognizing that hindsight is always 20/20, I am curious as to why the county land bank transferred the house to Buckeye Shaker in the first place. The lawsuit filed by the city that showed substantial financial problems with the corporation was almost two years old and there were questions circling about Johnson’s activities as it relates to the CDC. Before they transferred the property — if at all — the land bank should have gotten clear plans from Buckeye Shaker as to what exactly they were going to do with it. But that train has already left the station.
Needless to say, the demise of Buckeye Shaker as a community development corporation has cost the city a great deal of money in terms of legal fees and losses on loans and other payments made to the now-defunct corporation. That is why it is so important that the mayor’s office and city council keep a vigilant eye on all the community development corporations which have become, in some cases, the fiefdoms of the local council member. These organizations must be run by responsible individuals; have proper accounting standards; and appoint board members that do the job that they are appointed to do — be the eyes and ears of the public.
When the community puts power into the hands of private individuals, it is always necessary that there be checks and balances. Fortunately, in this case, the check and balances worked. Vigilant citizens must make sure they work 100% of the time.
C. Ellen Connally is a retired judge of the Cleveland Municipal Court. From 2010 to 2014 she served as the President of the Cuyahoga County Council. An avid reader and student of American history, she serves on the Board of the Ohio History Connection, is currently vice president of the Cuyahoga County Soldiers and Sailors Monument Commission and president of the Cleveland Civil War Round Table. She holds degrees from BGSU, CSU and is all but dissertation for a PhD from the University of Akron.
3 Responses to “The System Works – Johnson House Transfer Won’t Happen”
Mel Maurer
Thanks for this.
T. Marie Magyar
The shenanigans in Ward 4 may be the tip of the proverbial iceberg, there is little to no oversight of the CDCs and Council members. Oversight is protective for ward residents, CDC employees and board members, the City, County, State and Federal officials.
The residents deserve representatives with integrity.
One issue I recommend is a Charter change to elect “at-large” council members; a percentage of council seats. The Census data are in the hands of the State reps for redistricting. This an opportunity not to be missed by City leaders. This could create city-wide cooperation and lessen the fiefdoms and mini-mayors. Sincerely T.3M
Cynthia
This is an old scam. It happened to my grandmother. She lost her home in NYC because she trusted her lawyer. He sent her a deed transfer to sign without sending a contract with a confirmed price. We tried to contact him but he hid. He gave the deed to someone in his firm. And no one would help us. 😭My grandma cried for years. She worked so hard to buy that house. She lived in it for 30 years. Stealing and kicking people out of their homes for money is an American way🇺🇸. Im not surprised.