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Morning news headlines for May 16, 2012
Cleveland Diocese begins process of re-opening churches; Drilling giant Chesapeake downgraded by S&P; First Merit to cut 350 jobs
by WKSU's AMANDA RABINOWITZ


Reporter
Amanda Rabinowitz
 
  • Cleveland Diocese starts process of re-opening closed churches
  • Ohio’s biggest gas drilling investor downgraded
  • Akron-based First Merit to cut 350 jobs 
  • Another sentenced in Dimora bribery investigation
  • Texting ban clears House
  • Horseshoe casino lively
  • Judge denies Durham request
  • Two charged in VA center fraud
  • Cleveland Diocese starting process of re-opening 12 closed churches
    The head of the Cleveland Catholic Diocese is meeting with parishioners about reopening 12 churches that were closed but then surprisingly spared by the Vatican. The Plain Dealer reports parishioners from a closed Cleveland church met with Bishop Richard Lennon on Tuesday. One parishioner says Lennon told him money and sacred artifacts taken from the church will be returned but didn't say when it would reopen or who would lead it. People from two more parishes say Lennon's office called them about a Wednesday meeting. Lennon had ordered the churches closed over the past several years. The Vatican's Congregation for the Clergy ruled Lennon failed to follow church law and procedure in the closings.

    Another sentenced in Dimora bribery investigation
    A construction executive convicted of bribing Dimora has been sentenced to one year of home detention and a $20,000r fine. Nicholas Zavarella of Zavarella Brothers Construction Company, gave Dimora $25,000 in free home improvements dating back to 2002. In return, Dimora helped get one of Zavarella’s daughters a county job. Citing his cooperation, prosecutors did not press the judge for prison time.

    Texting ban clears House
    The Ohio House has given final approval to a bill banning text messaging while driving. Governor Kasich is expected to sign it today. The law also prohibits teenagers under 18 from using any electronic device while driving, with the exception of a GPS. And, unlike adults, teens can be pulled over for breaking that ban.

    Horseshoe casino lively
    It’s been a steady stream of activity at Cleveland’s Horseshoe Casino since its opening Monday night. The Plain Dealer reports about 5,000 people attended Monday’s grand opening, and counted 11,000 visitors through 8pm Tuesday.  

    Ohio’s biggest investor in oil and gas drilling downgraded by S&P
    Ohio’s biggest investor in oil and gas drilling is being downgraded by Standard and Poor’s. The S&P has lowered Chesapeake Energy's credit rating a notch, to BB- from BB, a step further into junk territory. Shares of the Oklahoma City-based company dropped more than 6 percent to the lowest level since 2009. Its CEO, Aubrey McClendon is also at the center of controversy, reportedly running a private fund for at least four years that traded in contracts for oil and natural gas – a conflict of interest - and taking out personal loans to cover his investments in the company's wells.

    Judge denies Durham request
    A federal judge has declined to throw out wiretap evidence against a former Indianapolis businessman charged in a $200 million fraud case with former Akron-based Fair Finance. The judge denied Tim Durham's motion to suppress evidence, rejecting his arguments that the FBI had failed to show probable cause before obtaining permission for the wiretaps. Prosecutors say wiretap transcripts show how Durham and his business partners discussed ways to hide from investors the fact that Fair Finance was running out of money in 2009. Durham's trial is scheduled to start June 8.

    CORRECTION: First Merit cuts jobs 
    Akron-based First Merit is eliminating nearly 350 jobs as part of a cost-cutting plan over the next year. The cuts represent 11-percent of the banking company’s overall work force. First Merit also announced this week it would close eight Northeast Ohio bank branches and converting one to a drive-up location. The cost cutting plan is expected to save $12 million this year and $30 million in 2013. 

    Two charged in VA center fraud
    Two people face charges for allegedly defrauding the Cleveland Veteran’s Affairs Medical Center of $110,000. VA center employee Dawn Mungin allegedly revealed competitors bids to Mack Johnson, who works for medical equipment provider PRN Medical Services. Once Johnson would win a contract, Mungin would approve inflated bills or bills for work that was never done. The pair is charged in a bill of information, meaning they are cooperating with prosecutors.

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