Mayor Sandra Morgan’s finance director, Lynn Ann Gries, is spending public funds without a 2026 council approved budget and exposing her personal wealth to civil liability

CLEVELAND, OH – Only in East Cleveland does a city government operate without a budget and officials who don’t know they’re creating a constitutional crisis by doing so.

It is 2:00 a.m. on Euclid Avenue.  A police patrol car powered by fuel purchased with a “void” Voyager fuel contract and being driven by a police officer receiving wages that have not been appropriated by city council since January 1, 2026, pulls over a motorist.  East Cleveland’s mayor, council and judge are operating without a 2026 appropriations ordinance.

Mayor Sandra Morgan is entering her second year of authorizing public funds to be spent without an appropriations ordinance approved by council. Last year as interim mayor she thought she approved a budget, but it included expenses but no revenue.

Because the officer’s paycheck, the fuel in the public safety vehicle, and the energy source for the body camera are unappropriated, the stop and arrest are “void” pursuant to section 5705.41(B)(1)(a)(b) of the Ohio Revised Code (R.C.). The officer is essentially a private citizen in a uniform impersonating a law enforcement or peace officer.

No subdivision or taxing unit shall: (A) Make any appropriation of money except as provided in Chapter 5705. of the Revised Code …  (B)(1) Make any expenditure of money unless the fiscal officer of the subdivision or taxing authority has certified that all of the following apply:(a) The expenditure has been appropriated as provided in Chapter 5705. of the Revised Code; (b) The expenditure has been appropriated by the subdivision’s or taxing unit’s legislative authority

The instructions are mirrored in federal laws that are the basis of the “furloughs” that occur when Congress doesn’t approve the President’s budget.  Specifically, 31 U.S. Code 1341 exists under the heading, “Limitations on expending and obligating amounts.”  In Washington the law is known as the “AntiDeficiency Act.”

“(1)Except as specified in this subchapter or any other provision of law, an officer or employee of the United States Government or of the District of Columbia government may not — (A) make or authorize an expenditure or obligation exceeding an amount available in an appropriation or fund for the expenditure or obligation; (B) involve either government in a contract or obligation for the payment of money before an appropriation is made unless authorized by law …”

Pursuant to 31 U.S.C. 1342, Congress prohibits federal workers from offering “voluntary” services during a furlough, which reinforces the “go home” instructions in the Office of Management and Budget’s Circular A-11.

Even locally, under ordinances enacted by the council and a charter enacted by East Cleveland voters, Section 67 of the Charter mirrors both federal and state laws.

“No contract, agreement or other obligation involving the expenditure of money shall be entered into, nor shall any ordinance, resolution or order for the expenditure of money be issued by the Council, or be authorized by any officer of the city, unless the Mayor and Director of Finance shall first certify in writing to the Council or to the proper officer, as the case may be, that the money required for such contract, agreement, obligation or expenditure is in the treasury, to the credit of the fund from which it is to be drawn, and not appropriated for any other purpose, which certificate shall be filed and immediately recorded. The sum so certified shall not thereafter be considered unappropriated until the city is discharged from the contract, agreement or obligation,”

By making an arrest in a municipal corporation with a shut down and unfunded government, the police officer is operating illegally under “color of law” while receiving misappropriated and unbudgeted public funds.  The employee is committing fraud every time they place their hours worked in the ADP payroll accounting system. The incident report they wrote while the government was unfunded, that was used to file charges causing them to appear in court, is evidence of a crime.  They can’t submit an overtime request for a position that isn’t budgeted.

Currently, East Cleveland police officers, prosecutors and the judge could face referrals for federal prosecution pursuant to 18 U.S.C. 242 (Deprivation of rights under color of law) and civil rights litigation pursuant to 42 U.S.C. 1983.  So could every other department “enforcing laws” against citizens and businesses while employees have had no authority to discharge any official duties out of city hall since January 1st.

Pursuant to R.C. 5705.41, and East Cleveland Charter Section 65, no money can be drawn from the treasury to pay the officer’s salary or fuel for the vehicle’s he or she is driving to search for people to arrest unless it has been lawfully appropriated.   It’s the same for every other employee, Morgan, Austin and the other four members of council.  Elmore Hall should be careful as a corrections officer employee supervised by Cuyahoga County Sheriff Harold Pretel.  He’s a gun carrying law enforcement officer.  His receipt of misappropriated funds as wages places him in a completely different category of law violator.

Ward 2 Councilman Timothy Austin was elected president by his colleagues, but he hasn’t demanded that Mayor Sandra Morgan give council an appropriations ordinance for council to pass so she can legally authorized the expenditure of public funds.

There are laws found in R.C. 5705.41 through R.C. 5705.47 that quite literally instructed Morgan and the court to shut down.  Without a council-approved appropriations ordinance (budget), the finance director can’t certify the availability of funds budgeted per line item to spend in 2026.  Morgan’s finance director, Lynn Ann Gries, is personally responsible to East Cleveland taxpayers for every penny that’s been spent since January 1, 2026.

Any officer, employee, or other person who issues any order contrary to section 5705.41 of the Revised Code, or who expends or authorizes the expenditure of any public funds, or who authorizes or executes any contract contrary to sections 5705.01 to 5705.47 of the Revised Code, unless payments thereon are subsequently ordered as provided in section 5705.41 of the Revised Code, or expends or authorizes the expenditure of any public funds on any such void contract, obligation, or order, unless subsequently approved as provided in that section … shall be liable to the political subdivision for the full amount paid from the funds of the subdivision on any such order, contract, or obligation.”

Just like the United States government shut down last year and President Donald J. Trump sent federal workers home, East Cleveland’s workers were supposed to be sent home by Morgan until the council presided over by Ward 2 councilman Timothy Austin received and approved a 2026 appropriations ordinance generated from the mayor’s office.  The November 15th annual deadline for a mayor’s estimate was missed in 2025 after Valencia Meeks’ employment was terminated on October 10, 2025, for increasing her finance director’s salary from $85,000 to $110,000.  The only three other employees in East Cleveland’s finance department are clerks.

An incomplete departmental draft of the mayor’s estimate was left in the mayor’s office for Morgan at the end of the conference table near the door with a sticky note explaining it on December 31, 2025.  It was there with the user login and password information for the city’s bank accounts former Mayor Lateek R. Shabazz and his executive assistant, Dawn Jones, left for Morgan.  I know because I prepared and left the login and password data with other “sticky noted” transitional documents for Morgan to read.

When asked during her call to me on February 12, 2026, why she didn’t give the 2026 draft of the mayor’s estimate to her finance director to complete, Morgan admitted she didn’t know it was left on her desk.  Two other documents left for Morgan were the employment termination letters of Todd Carroscia and Salondra Wallace.  Carroscia’s termination letter and the evidence attached to it were 120 pages.  Morgan didn’t read the Carroscia termination and evidence, either, because she thinks 120 pages of evidence shows the civil service law violator was improperly terminated for FMLA fraud.  Back to the police officer.

Because the officer’s paycheck, the fuel in the cruiser, and the energy source for the body camera are unappropriated, the stop and arrest are “void” pursuant to R.C. 5705.45. The officer is essentially a private citizen in a uniform impersonating a law enforcement or peace officer.

By making this arrest, the officer is operating illegally under “color of law” while receiving misappropriated and unbudgeted public funds.  The law enforcement employee is committing fraud every time they place their hours worked in the ADP payroll accounting system. This exposes the officer, prosecutors and the court to federal prosecution under 18 U.S.C. 242 (Deprivation of rights under color of law) and civil rights litigation under 42 U.S.C. 1983.  It’s also a Brady violation that requires the prosecutor to disclose the city’s shutdown status to every criminal defendant since January 1, 2026.

In Ohio the law doesn’t care if Morgan thinks she’s doing the right thing by paying employees to discharge official acts in violation of R.C. 5705.41 through 5705.47.  The Ohio Supreme Court held in State v. Krutz that each act in theft in office offenses is counted separately in a collective of unlawful acts.

Since January 1, 2026, Morgan and her finance director, Gries have unlawfully moved millions of dollars in wages, benefits, services and contracts in numerous individual acts.  All contracts enacted without a 2026 appropriations are void, as they were never appropriated.

By the time an auditor finishes counting, they won’t just be facing a “2026 budget shortfall.”  If the law is equally applied, they’ll be facing a mountain of individual felony counts applied to each action and obstruction of the enforcement of law, each one enough to strip them of their right to hold office forever.

Gries is formerly Lynn Ann Ries. She married Donald Gries and joined his father Robert Gries’ family.  Robert Gries was one of the Cleveland Browns investors.  Her husband’s great-grandfather built May Co. The New York Times published her marriage to Donald Gries on August 5, 1990.

Lynn Ann Gries’ background is in investing and Initial Public Offerings. She’s worked in investment banking for McDonald Investments, Morgan Stanley and JumpStart, LLC before starting her own business, Gries Consulting. She has no prior background in municipal finance as evidenced by her trip to Mexico this week instead of staying at city hall to complete the 2026 budget.

The bottom line is it’s assumed Gries has money, so the risk to her personal wealth becomes greater for following the orders of a mayor who’s the city’s chief law enforcement officer and doesn’t know the laws of the public office she won an 84 percent vote to discharge. R.C. 5705.45 gives individual members of council, taxpayers, residents and property owners in the city more than one law to cause their removal from office, duties to pay and criminal prosecutions.

Since East Cleveland is a direct entitlement city for the purpose of receiving U.S. Department of Housing and Urban Development (HUD) funds that Congress requires to be lawfully appropriated, locally, residents have Trump’s U.S. Attorney for the Northern District of Ohio to submit complaints against the sanctuary city.  Where federal investigators or HUD’s Inspector General may first look is to 18 U.S.C. 666 under the “Theft or Bribery Concerning Programs Receiving Federal Funds” statute.

Attorney George Shoup III is being paid $400 an hour, $3200 a day capped at $40,000 a month to serve as a look out for Auditor of State Keith Faber while Mayor Sandra Morgan and her completely inexperienced “municipal fiscal officer,” Lynn Ann Gries, spend federal, state and local funds without a 2026 appropriations ordinance.

This is the most dangerous statute for the Morgan administration. It is often called the “Federal Program Fraud” statute.  It prohibits the “intentional misapplication” of property or funds valued at $5,000 or more from any local government that receives more than $10,000 in federal assistance in a year. Just as State v. Krutz makes every unappropriated dollar a state felony, Section 666 makes it a federal felony to misapply funds under the control of the city.  Up to 10 years in federal prison per count.

The Uniform Grants Guidance (Financial Management) found at 2.2 C.F.R. 200.302 is the federal regulatory “bible” for all grant recipients.  Federal law requires that a city’s financial management system provide for the “comparison of expenditures with budget amounts for each federal award.”  If there is no 2026 appropriation (budget), Gries cannot legally “expend and account for the Federal award in accordance with State laws” as required by 200.302(a).

Because she is violating R.C. 5705.41, Gries is simultaneously in default of the city’s grant management agreement with all federal agencies.  This allows the federal government to suspend or terminate all federal funding to the city and demand immediate repayment (clawback) of all funds spent during the lapse.

There’s also 3. 31 U.S.C. 3729, The False Claims Act (FCA).  If the city submits a request for “reimbursement” or a “drawdown” of federal funds while certifying that they are in compliance with all laws — when they are actually in a state of unappropriated “shutdown”— they are submitting a false claim.  If they spend federal money and fail to return it now that the “void” nature of the expenditure is exposed, they may be liable for “knowingly and improperly avoiding an obligation to pay or transmit money to the Government.”  Treble damages (3 times the amount spent) plus massive civil penalties.

The U.S. Attorney is only one place where a complaint can be filed against Morgan and Gries for their now documented acts of dereliction, theft, fraud, obstruction, misfeasance, malfeasance and nonfeasance in office.  R.C. 733.72 is but one Ohio law in a resident’s toolbox to draw attention to the failure of elected and appointed officials to obey laws.

The heading for R.C. 733.72 is “Charges against municipal officers filed with the probate court-proceedings.”  Any elector of East Cleveland, meaning any registered voter, along with four other electors can submit the information in this news story to the probate court, along with all of council’s agendas and meeting minutes for 2026, that Clerk of Council Stacy Clark Warren has a duty to prepare and maintain, as background information for a complaint.

“When a complaint under oath is filed with the probate judge of the county in which a municipal corporation or the larger part thereof is situated, by any elector of the municipal corporation, signed and approved by four other electors thereof, the judge shall forthwith issue a citation to any person charged in the complaint for his appearance before the judge within ten days from the filing thereof, and shall also furnish the accused and the village solicitor or city director of law with a copy thereof. The complaint shall charge any of the following:  (A) That a member of the legislative authority of the municipal corporation has received, directly or indirectly, compensation for his services as a member thereof, as a committeeman, or otherwise, contrary to law;  (B) That a member of the legislative authority or an officer of the municipal corporation is or has been interested, directly or indirectly, in the profits of a contract, job, work, or service, or is or has been acting as a commissioner, architect, superintendent, or engineer in work undertaken or prosecuted by the municipal corporation, contrary to law;  (C) That a member of the legislative authority or an officer of the municipal corporation has been guilty of misfeasance or malfeasance in office.  Before acting upon such complaint, the judge shall require the party complaining to furnish sufficient security for costs.”

There’s a special law written for fiscal officers like Gries who any independent thinking member of council has a right to file.  It’s found in R.C. 733.78 and captioned, “Violations by fiscal officers.”

“(A) As used in this section, “fiscal officer” means a village fiscal officer, a village clerk-treasurer, a village clerk, a city auditor, a city treasurer or, in the case of a municipal corporation having a charter that designates an officer who, by virtue of the charter, has duties and functions similar to those of the city or village officers referred to in this section, the officer so designated by the charter.  (B)(1) If a fiscal officer purposely, knowingly, or recklessly fails to perform a fiscal duty expressly imposed by law with respect to the fiscal duties of the office of fiscal officer or purposely, knowingly, or recklessly commits any act expressly prohibited by law with respect to the fiscal duties of the office of fiscal officer, a member of the legislative authority of the municipal corporation may submit a sworn affidavit alleging the violation, together with evidence supporting the allegations, to the auditor of state. The sworn affidavit and evidence shall be submitted in the format prescribed by rule of the auditor of state under section 117.45 of the Revised Code. A person who makes a false statement in a sworn affidavit, for purposes of this section, is guilty of falsification under section 2921.13 of the Revised Code.  (2) The auditor of state shall review the sworn affidavit and the evidence. Within thirty calendar days after receiving the sworn affidavit and evidence, unless, for good cause, additional time is required, the auditor of state shall determine whether clear and convincing evidence supports the allegations. If the auditor of state finds that no allegation is supported by clear and convincing evidence, the auditor of state shall submit those findings in writing to the fiscal officer and the person who initiated the sworn affidavit. If the auditor of state finds by clear and convincing evidence that an allegation is supported by the evidence, the auditor of state shall submit those findings in writing to the attorney general, the fiscal officer, and the person who initiated the sworn affidavit. The findings shall include a copy of the sworn affidavit and the evidence submitted under division (B)(1) of this section.  (3)(a) The attorney general shall review the auditor of state’s findings and the sworn affidavit and evidence. Within ten business days after receiving them, unless, for good cause, additional time is required, the attorney general shall determine whether clear and convincing evidence supports the allegations. If the attorney general finds that no allegation is supported by clear and convincing evidence, the attorney general, by certified mail, shall notify the auditor of state, the fiscal officer, and the person who initiated the sworn affidavit that no complaint for the removal of the fiscal officer from public office will be filed.  (b) If the attorney general finds by clear and convincing evidence that an allegation is supported by the evidence, the attorney general, by certified mail, shall notify the auditor of state, the fiscal officer, and the person who initiated the sworn affidavit of that fact, and shall commence an action for the removal of the fiscal officer from public office under division (C) of this section.”

While there are other civil remedies such as mandamus actions, and demands for law directors to apply the “specific performance” of avoided public duties pursuant to R.C. 733.57, they rely on law directors and prosecutors appointed by the mayor to act.  It is why some residents may choose R.C. 2935.09 and R.C. 2935.10.

Pursuant to R.C. 2935.09(D), “A private citizen having knowledge of the facts who seeks to cause an arrest or prosecution under this section may file an affidavit charging the offense committed with a reviewing official for the purpose of review to determine if a complaint should be filed by the prosecuting attorney or attorney charged by law with the prosecution of offenses in the court or before the magistrate. A private citizen may file an affidavit charging the offense committed with the clerk of a court of record before or after the normal business hours of the reviewing officials if the clerk’s office is open at those times. A clerk who receives an affidavit before or after the normal business hours of the reviewing officials shall forward it to a reviewing official when the reviewing official’s normal business hours resume.”

What follows a complaint generated from a person’s affidavit are the instructions found in R.C. 2935.10(A).  “Upon the filing of an affidavit or complaint as provided by section 2935.09 of the Revised Code, if it charges the commission of a felony, such judge, clerk, or magistrate, unless the judge, clerk, or magistrate has reason to believe that it was not filed in good faith, or the claim is not meritorious, shall forthwith issue a warrant for the arrest of the person charged in the affidavit, and directed to a peace officer; otherwise the judge, clerk, or magistrate shall forthwith refer the matter to the prosecuting attorney or other attorney charged by law with prosecution for investigation prior to the issuance of warrant.”

Attorney George Shoup III was appointed to the newly created public office of a $400 an hour “receiver” pursuant to a new statute written into R.C. Chapter 118 in Title 1 for state governments instead of Title 7 for municipal corporations.  R.C. 118.29 governs the duties of receivers appointed to oversee the finances of a municipal corporation whose leaders have been as incompetent as convicted ex-Mayor Brandon King and now Morgan.

Ohio Auditor of State Keith Faber has demonstrated his incompetence as East Cleveland’s “financial supervisor” for all the years he’s held the office. He documented theft he didn’t report to either the Ohio Attorney General or Cuyahoga County Prosecuting Attorney, and now he’s “financially supervising” the city with a $400 an hour receiver while it’s officials illegally spend money he’s auditing without a budget.

Shoup’s $400-an-hour receiver duties pursuant to R.C. 118.29 include preparing and implementing a financial plan based on a council-approved appropriations that is structured to eliminate the city’s growing deficit, made worse daily by nearly 60 days of illegal spending.  He also has other broad authority pursuant to R.C. 118.29(C)(3) to, “Ensure the municipal corporation, county, or township in fiscal emergency complies with any other relevant aspects of this chapter …”

Shoup isn’t just watching a fiscal crisis.  He is a $400 an hour receiver appointed by the Court of Claims watching a crime scene in slow motion.  

Pursuant to Prof. Cond. R. 1.13, Shoup’s failure to refer this “knowing violation of law” to a higher authority (like the County Prosecutor or the State Auditor) could place his law license in jeopardy.  It’s even worse that spending crimes are occurring, also, under the nose of his appointing authority, Auditor of State and East Cleveland’s derelict “financial supervisor,” Keith Faber.  

As I write, East Cleveland is approaching its second month of operating while the government is lawfully shutdown.  Gries has no idea she’s deep in the felony category of signing her name to checks and transferring federal, state and local public funds without a budget.

The Morgan administration is so “Third World backwards” her directors of finance, Gries, and community development, Kamla Lewis, want offices next to the mayor instead of with their employees.  Gries occupies the office that has traditionally been occupied by the mayor’s secretary.  One of the GAAP practices of a municipal fiscal officer is to “observe” the procedural conduct of the employees they’ve assigned to discharge statutory duties to confirm there are “internal controls” on how public monies are handled.  Her upstairs location is just plain backwards and exists as another example of how little she knows about government finance.

In Ohio, a city does not have an inherent right to spend money. That right must be granted — annually, by ordinance, through the legislative authority. When that grant expires, the spending power expires with it.  It’s no different that a person operating a vehicle without a driver’s license, or a peace officer who did not take the 24 hours of mandated state training and report it to the Ohio Peace Officer’s Training Academy before December 31st.

Back to the police officer and the arrested citizen.  If the judge allows the proceeding to continue while being paid with unappropriated funds, they are “assenting” to a theft of public services. The arrestee’s lawyer now has grounds for a suppression motion, arguing that the entire judicial process is a nullity because the officers of the court have no lawful authority to receive a paycheck or occupy the bench.

There’s nothing in Morgan’s director of finance appointee’s resume that puts her over the finance department of a municipal corporation as fiscally troubled as the City of East Cleveland.  It’s the same for Shoup. 

Gries cannot certify what does not exist. There is no appropriation. Therefore, there can be no certificate. Therefore, every contract signed since January 1 — for police body cameras, for fuel, for utilities, for payroll — is statutorily void.

Since January 1, 2026, no one has the legal authority to be paid. All contracts are void. All invoices are worthless.  The law places the burden on every person interacting with unbudgeted East Cleveland officials to have known better.

Eric Jonathan Brewer

Cleveland's most influential journalist and East Cleveland's most successful mayor is an East Saint Louis, Illinois native whose father led the city's petition drive in 1969 to elect the first black mayor in 1971. Eric is an old-school investigative reporter whose 40-year body of editorial work has been demonstrably effective. No local journalist is feared or respected more.

Trained in newspaper publishing by the legendary Call & Post Publisher William Otis Walker in 1978 when it was the nation's 5th largest Black-owned publication, Eric has published and edited 13 local, regional and statewide publications across Ohio. Adding to his publishing and reporting resume is Eric's career in government. Eric served as the city's highest paid part-time Special Assistant to ex-Cleveland Mayor Michael R. White. He served as Chief of Staff to ex-East Cleveland Mayor Emmanuel Onunwor; and Chief of Communications to the late George James in his capacity as the Cuyahoga Metropolitan Housing Authority's first Black executive director. Eric was appointed to serve as a member of the state's Financial Planning & Supervision Commission to guide the East Cleveland school district out of fiscal emergency and $20 million deficit. Former U.S. HUD Secretary Alphonso Jackson told Eric in his D.C. office he was the only mayor in the nation simultaneously-managing a municipal block grant program. Eric wrote the city's $2.2 million Neighborhood Stabilization Program grant application. A HUD Inspector General audit of his management of the block grant program resulted in "zero" audit findings.

As a newspaper publisher, Eric has used his insider's detailed knowledge of government and his publications to lead the FBI and state prosecutors to investigations that resulted in criminal prosecutions of well-known elected officials in Ohio; and have helped realign Cleveland's political landscape with the defeat of candidates and issues he's exposed. Eric's stories led to the indictments of the late Governor George Voinovich's brother, Paul Voinovich of the V Group, and four associates. He asked the FBI to investigate the mayor he'd served as chief of staff for public corruption; and testified in three federal trials for the prosecution. He forced former Cuyahoga County Coroner Dr. Elizabeth Balraj to admit her investigations of police killings were fraudulent; and to issue notices to local police that her investigators would control police killing investigations. Eric's current work has resulted in Cuyahoga County Judge John Russo accepting the criminal complaint he guided an activist to file against 24 civil rights-violating police officers in the city he once led for operating without valid peace officer credentials. USA Today reporters picked up on Eric's police credentials reporting from his social media page and made it national.

Eric is the author of of his first book, "Fight Police License Plate Spying," which examines the FBI and local police misuse of the National Crime Information Center criminal records history database. An accomplished trumpet player and singer whose friendship with Duke Fakir of the Four Tops resulted in his singing the show's closing song, "Can't Help Myself": Curtis Sliwa of New York's Guardian Angels counts Eric among his founding chapter leaders from the early 1980's role as an Ohio organizer of over 300 volunteer crime fighters in Cleveland, Columbus and Youngstown, Ohio. For his work as a young man Eric was recognized by Cleveland's Urban League as it's 1983 Young Man of the Year.

Known in Cleveland for his encyclopedic knowledge of government and history, and intimately-connected with the region's players, every local major media outlet in Cleveland has picked up on one of Eric's stories since 1979. There is no mainstream newspaper, television or radio outlet in Cleveland that does not include an interview with Eric Jonathan Brewer in its archives over the past 40 years.

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