The U.S. Attorney announced a one-count bill of information against Joseph Gallucci.
Galluci, 42, of Independence, ran for office against Frank Russo in 2006.
It's alleged he ran as a kind of "stooge" candidate, a Republican who would not seriously campaign against Russo.
The U.S. Attorney claims Gallucci dropped out of the race after it was too late for Republicans to field another candidate.
It's alleged Gallucci was paid $2,000 a month through a business for doing no work.
Former Cuyahoga County employee J. Kevin Kelley, who is already facing multiple charges in the probe, is alleged to have brokered the deal for Russo.
Gallucci was then hired in Cuyahoga County Auditor Frank Russo's office to a $68,000 job overseeing tax matters involving motels and hotels.
Auditor's spokesman Destin Ramsey claims Gallucci was hired for that post because Gallucci's family owned motels and he knew the industry.
Gallucci resigned from his post Tuesday morning.
Russo is not specifically named in Tuesday's action.
Russo has not been charged and has denied any wrongdoing.