CLEVELAND, OH (WOIO) - The former director of the Cleveland Job Corps Center was sentenced to more than three years in prison for embezzling retirement funds from employees and failing to pay taxes, law enforcement officials said.
Clark V. Hayes, 56, of Richfield, was sentenced to 37 months in prison and ordered to pay $1.5. million in restitution.
"This defendant was hired to make sure struggling workers learned new job skills, but instead used the Job Corps program to purchase expensive cards and dine at fancy restaurants," said Acting U.S. Attorney David A. Sierleja. "He defrauded his employees and the federal government."
Hayes was the owner of Applied Technology Systems, Inc. (ATSI) in Cleveland. The U.S. Department of Labor contracted with ATSI to operate the Cleveland and Jacksonville Job Corps Centers, according to court documents.
He also closed an employee retirement account and had more than $210,000 and transferred those funds to a different account he controlled. He spent approximately $100,000 of those funds on personal expenses, including purchasing a Mercedes Benz and investing the money in other business ventures, according to court documents and statements.