Eastern District of Michigan
Press releases recorded for this federal judicial district.
Boogaloo Movement Supporter Pleads Guilty to Illegally Possessing FirearmsRead the Press Release
DETROIT – A supporter of the “Boogaloo” movement pleaded guilty today to being a drug user in possession of firearms and ammunition, and for making a false statement in connection with the acquisition of a firearm, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Timothy Allen Teagan, 23, of Plymouth, Michigan, pleaded guilty before United States District Judge Sean F. Cox.
According to court records, Teagan is a supporter of the anti-government Boogaloo movement. Members of the Boogaloo movement advocate for the violent overthrow of the government. They believe that a civil war or uprising against the government is coming to the United States, and they refer to that conflict as the “Boogaloo.” On July 17, 2022, Teagan completed a Firearms Transaction Record, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473, in connection with the acquisition of a firearm from a federally licensed firearms dealer in Westland, Michigan. Teagan applied for the purchase of a Glock 34, 9 millimeter pistol. On the ATF Form 4473, Teagan checked “no” to the question concerning drug use. At the time Teagan prepared the ATF Form 4473 and submitted it, he was a frequent and habitual user of marijuana and was also addicted to the drug. Teagan lied on the ATF Form 4473 because he knew that he would be legally prohibited from purchasing and possessing a firearm if he answered truthfully and admitted that he was addicted to marijuana, or a habitual user of marijuana. Teagan subsequently purchased the Glock 9 mm pistol on July 20, 2022.
In addition, in October 2022, Teagan possessed a Diamondback Arms, Inc. DB-15 .556 caliber semi-automatic rifle and ammunition. Teagan stored the rifle and some of the ammunition in his bedroom at his father’s home located in Plymouth, Michigan. Teagan purchased the rifle in December 2019 from a federally licensed firearms dealer in Canton, Michigan. At the time of the December 2019 purchase, Teagan knew that he was a frequent and habitual user of marijuana and therefore not permitted to possess the firearm.
On October 27, 2022, FBI agents executed a search warrant at Teagan’s father’s residence in Plymouth. During the search, agents recovered the DB-15 rifle, Level IV body armor, gas masks, dozens of rounds of rifle and pistol ammunition, an ACOG rifle sight, firearm magazines, and Boogaloo movement flags and patches. The Glock 9 mm pistol was recovered from a nearby vehicle.
“Individuals who illegally possess firearms and who lie to purchase them present a danger to our community,” stated U.S. Attorney Ison. “We will aggressively prosecute those who would violate and seek to circumvent federal firearms laws.”
“Working with our law enforcement counterparts and the U.S. Attorney’s Office to pursue and prosecute individuals who lie about their habitual drug use in order to purchase a firearm helps keep our communities safe,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “Investigations such as this show the FBI in Michigan is working diligently and tirelessly to protect the American people and uphold the United States Constitution.”
Teagan faces a maximum sentence of 15 years in prison on the firearms possession charge, and a maximum of ten years in prison on the false statement charge. A sentencing hearing is set for August 16, 2023.
The case was investigated by the FBI and prosecuted by Assistant United States Attorney Saima Mohsin.
Former Detroit Police Lieutenant in Charge of Integrity Unit Sentenced to 2 ½ Years in Prison for Taking Bribes Connected to TowingRead the Press Release
DETROIT – A former police lieutenant in charge of the Detroit Police Department’s Integrity Unit was sentenced to 2 ½ years in prison for accepting bribes in a conspiracy with another Detroit police officer in connection with corruption in the towing industry in Detroit, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
John F. Kennedy, 57, of Rochester Hills, Michigan, at one point commanded the Detroit Police Department’s Integrity Unit—a division of the department’s Internal Affairs Division—and was responsible for investigating reports of law violations and professional misconduct by police officers and other city employees. Kennedy conspired with fellow Detroit police officer Daniel S. Vickers to commit bribery by accepting money and other items of value in exchange for Kennedy using and promising to use his influence as a supervisor to persuade other officers to make tow referrals to a towing company in violation of the city’s ordinance and Detroit Police Department policy. Under the city’s towing rotation, qualifying private towing companies are called by the police to tow cars that are seized by the police or reported stolen. Kennedy and Vickers were aware that by making towing referrals directly to a towing company which was not on the city’s towing rotation, they were violating the city’s rules and an ordinance which prohibit a towing company from receiving towing referrals if they are not on police department’s towing rotation.
Kennedy and fellow Detroit police officer Vickers agreed to accept bribes in the form of thousands of dollars in cars, car parts, car repairs, and new carpeting for Vickers’ home. Besides making illegal tow referrals in exchange for the bribes, Vickers and Kennedy also agreed to provide the towing company that Kennedy was investigating with confidential information about the status of the Integrity Unit’s case.
In total, Kennedy accepted bribes amounting to $14,950 during the course of the conspiracy. In addition, Vickers accepted over $3,400 in bribe payments from the towing company.
Vickers has pleaded guilty to the bribery conspiracy and was sentenced in February of this year to 27 months in prison.
Vickers and Kennedy were charged as part of the government’s investigation of corruption within the government and the Police Department of the City of Detroit relating to the towing industry and other matters. Thus far, six defendants have been charged in the probe, and five of those six defendants have been convicted.
U.S. Attorney Ison said, “Today’s sentence underscores our commitment to ensuring local police agencies embody the utmost commitment to excellence, integrity, and professionalism. Thankfully, today’s result is not emblematic of the character of our law enforcement partners. Nevertheless, this type of immoral conduct will and must be punished. We thank Chief of Police James White for his assistance in this investigation.”
“Police officers take an oath to protect and serve their community. Today, John Kennedy is being held accountable for violating that oath and using his official position to benefit himself personally,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “We appreciate the partnership and cooperation of Detroit Police Chief James White as the FBI’s Public Corruption Task Force continues to address public corruption in the City of Detroit.”
“This former officer’s actions are unacceptable for anyone who has the privilege to wear the Detroit Police badge,” said Detroit Police Chief James E. White. “We appreciate U.S. Attorney Ison’s work to bring accountability to those who fail in their sworn duty to serve and protect the public and will continue to collaborate with her office in any investigation of alleged wrongdoing by our officers. Delivering transparent, accountable, policing excellence that Detroiters deserve is a top priority of my administration.”
The case was investigated by the Detroit Area Public Corruption Task Force, which is led by the Federal Bureau of Investigation, with assistance from the Detroit Police Department, Michigan Attorney General's Office, Customs & Border Protection, and the U.S. Department of Homeland Security. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.
Former Detroit Police Lieutenant in Charge of Integrity Unit Sentenced to 2 ½ Years in Prison for Taking Bribes Connected to TowingRead the Press Release
DETROIT – A former police lieutenant in charge of the Detroit Police Department’s Integrity Unit was sentenced to 2 ½ years in prison for accepting bribes in a conspiracy with another Detroit police officer in connection with corruption in the towing industry in Detroit, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
John F. Kennedy, 57, of Rochester Hills, Michigan, at one point commanded the Detroit Police Department’s Integrity Unit—a division of the department’s Internal Affairs Division—and was responsible for investigating reports of law violations and professional misconduct by police officers and other city employees. Kennedy conspired with fellow Detroit police officer Daniel S. Vickers to commit bribery by accepting money and other items of value in exchange for Kennedy using and promising to use his influence as a supervisor to persuade other officers to make tow referrals to a towing company in violation of the city’s ordinance and Detroit Police Department policy. Under the city’s towing rotation, qualifying private towing companies are called by the police to tow cars that are seized by the police or reported stolen. Kennedy and Vickers were aware that by making towing referrals directly to a towing company which was not on the city’s towing rotation, they were violating the city’s rules and an ordinance which prohibit a towing company from receiving towing referrals if they are not on police department’s towing rotation.
Kennedy and fellow Detroit police officer Vickers agreed to accept bribes in the form of thousands of dollars in cars, car parts, car repairs, and new carpeting for Vickers’ home. Besides making illegal tow referrals in exchange for the bribes, Vickers and Kennedy also agreed to provide the towing company that Kennedy was investigating with confidential information about the status of the Integrity Unit’s case.
In total, Kennedy accepted bribes amounting to $14,950 during the course of the conspiracy. In addition, Vickers accepted over $3,400 in bribe payments from the towing company.
Vickers has pleaded guilty to the bribery conspiracy and was sentenced in February of this year to 27 months in prison.
Vickers and Kennedy were charged as part of the government’s investigation of corruption within the government and the Police Department of the City of Detroit relating to the towing industry and other matters. Thus far, six defendants have been charged in the probe, and five of those six defendants have been convicted.
U.S. Attorney Ison said, “Today’s sentence underscores our commitment to ensuring local police agencies embody the utmost commitment to excellence, integrity, and professionalism. Thankfully, today’s result is not emblematic of the character of our law enforcement partners. Nevertheless, this type of immoral conduct will and must be punished. We thank Chief of Police James White for his assistance in this investigation.”
“Police officers take an oath to protect and serve their community. Today, John Kennedy is being held accountable for violating that oath and using his official position to benefit himself personally,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “We appreciate the partnership and cooperation of Detroit Police Chief James White as the FBI’s Public Corruption Task Force continues to address public corruption in the City of Detroit.”
“This former officer’s actions are unacceptable for anyone who has the privilege to wear the Detroit Police badge,” said Detroit Police Chief James E. White. “We appreciate U.S. Attorney Ison’s work to bring accountability to those who fail in their sworn duty to serve and protect the public and will continue to collaborate with her office in any investigation of alleged wrongdoing by our officers. Delivering transparent, accountable, policing excellence that Detroiters deserve is a top priority of my administration.”
The case was investigated by the Detroit Area Public Corruption Task Force, which is led by the Federal Bureau of Investigation, with assistance from the Detroit Police Department, Michigan Attorney General's Office, Customs & Border Protection, and the U.S. Department of Homeland Security. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.
Convicted Felon Sentenced to 8 Years in Prison for Illegally Possessing Firearms Used in Two ShootingsRead the Press Release
DETROIT – A Detroit man was sentenced yesterday to 8 years in prison for charges relating to his possession of firearms involved in two shootings in 2021, including one where he indiscriminately fired over thirty rounds at the home occupied by his domestic partner, other adults, and two children, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by James Deir, Special Agent in Charge of the ATF in Michigan.
Jason Foley, 39, who pleaded guilty to two counts of felon in possession of a firearm, was sentenced to 96 months imprisonment by United States District Judge Nancy Edmunds.
According to court documents, on October 24, 2021, officers from the Warren Police Department recovered two loaded firearms, a Diamondback .223 caliber rifle with a drum magazine and a Smith & Wesson 9-milimeter semiautomatic pistol, from Foley’s vehicle. A firearms examiner determined that the Diamondback rifle was used in a shooting on August 4, 2021, and the 9-milimeter handgun was used in a shooting on October 9, 2021. On August 4, 2021, Foley was involved in a shooting into a home occupied by several adults and children where officers recovered thirty-one .223 caliber casings and observed at least twenty gunshots in the target home. Officers also observed gunshots in a nearby house and two vehicles. Foley was also involved in a shooting on October 9, 2021, where officers recovered ten 9-millimeter casings that had been fired by Foley at a residence. In both shootings, the intended target was Foley’s girlfriend. Foley has a history of domestic violence involving at least three different victims, including a 2016 domestic violence conviction. Foley’s felony convictions include carrying concealed weapons, felon in possession of a firearm, possession with intent to distribute cocaine base, possession of a firearm in furtherance of drug trafficking, and unlawful driving away of a motor vehicle.
“This defendant used firearms and a hail of bullets to terrorize a neighborhood and numerous citizens, including two small children,” U.S. Attorney Ison said. “This case is an example of our focused approached to removing the drivers of violence from our community to make it safe.”
“Removing violent offenders from our communities is ATF’s highest priority,” said ATF Special Agent in Charge James Deir “We are proud of our long-standing partnerships in the law enforcement community expanding efforts to disrupt and dismantle these violent criminals.”
The investigation of the case was conducted by Special Agent Kevin Rambus of the ATF, and officers with the Detroit Police Department. Assistant United States Attorney Danielle Asher prosecuted this case for the United States.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
West Bloomfield Doctor Pleads Guilty to Illegally Distributing Prescription DrugsRead the Press Release
DETROIT, Mich. - A West Bloomfield physician pleaded guilty today to illegally distributing over 7,000 oxycodone pills, a Schedule II prescription drug-controlled substance, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Special Agent in Charge Orville Greene, Drug Enforcement Administration, Detroit Field Division.
Scott Henry Cooper, 61, pleaded guilty before United States District Judge Denise Page Hood.
According to court records, Cooper practiced as a primary care physician at a medical clinic, Comprehensive Medical Associates, located in West Bloomfield, MI, from 2013 through 2018. A portion of his practice involved patients who sought highly abused and valuable prescription drug-controlled substances such as oxycodone, hydrocodone, methadone, alprazolam (Xanax) and dextroamphetamine-amphetamine (Adderall). The defendant was required by his employer to see Medicaid (low income) patients. Cooper admitted that his controlled substance patients were problem patients, he did not want to see them, and in fact he often did not see them while continuing to prescribe controlled substances.
One such patient served time in prison from January 9, 2015 until December 7, 2017. For almost three years the defendant wrote monthly prescriptions for the patient without an examination or determination of medical necessity. The prescriptions were picked up at the front desk by a relative while the patient was in prison. The drugs prescribed by Cooper to the patient while the patient was in prison totaled over 7,000 dosage units. The count of conviction relates to a prescription written on October 16, 2017, without an examination or determination of medical necessity. The prescription was for 120 dosage units of oxycodone 15mg.
Under the terms of the guilty plea agreement, the judge must impose a sentence of at least 44 months in prison and may impose a sentence of up to 87 months of imprisonment. The exact sentence imposed will be determined at sentencing, which will take place on August 24, 2023, at 2 PM.
The defendant has not been able to prescribe any prescription drug-controlled substances since June of 2020, due to bond conditions imposed by the court.
“A doctor who supplies a patient with addictive and dangerous controlled substances without assessing the patient’s need for the drugs endangers the patient and the community,” stated U.S. Attorney Ison. “My office is committed to keeping highly addictive opioids off the street, and we will aggressively investigate and prosecute doctors who illegally distribute controlled substances.”
Special Agent in Charge Orville stated, ““Dr. Cooper’s actions were reckless and criminal. This type of negligence by medical personnel is what fuels addiction. We will continue to work with our law enforcement partners to investigate and hold accountable those who act illegally and put patients’ health and safety at risk.”
The case was investigated by agents of the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Wayne F. Pratt of the Health Care Fraud Unit.
Contractor Pleads Guilty to Bribing Former School Board President of Madison District Public SchoolsRead the Press Release
DETROIT – A school contractor pleaded guilty today to bribing and conspiring with Albert Morrison, the former School Board President of Madison District Public Schools, in a half-million dollar pay to play scheme, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Federal Bureau of Investigation, Michigan Division; Sarah Kull, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division; and John Woolley, Special Agent in Charge of the Department of Education, Office of Inspector General.
John David, age 65, pleaded guilty before United States District Judge Laurie Michelson to conspiracy to commit federal program bribery from 2014 through 2018 and bribery concerning programs receiving federal funds. Morrison was the elected President of the Madison District Public Schools Board of Education from 2012 through 2018. While Morrison was President, David was one of the owners of a building maintenance and reconstruction company, Emergency Restoration (a/k/a Emergency Reconstruction), that was awarded over $3.1 million in maintenance and construction projects in the Madison District Public Schools.
According to court records, David, who was a long-time friend of Morrison, wrote over $550,000 in checks from his company to Morrison’s company, Comfort Consulting, from 2014 through 2018. Morrison deposited the checks from David into his own bank account. The investigation uncovered $561,667 in payments from David to Morrison. David admitted he had to “pay to play” in the school district, and David’s companies received approximately $3,167,275 from the Madison District during the bribery conspiracy. Morrison spent the money from David on personal luxuries such as vacations in Florida and a boat slip.
To keep the payments secret from the school board and the community in the Madison Schools, Morrison, when publicly confronted at a Madison District school board meeting, denied having any financial ties to David or Emergency Restoration. Morrison and David also failed to disclose to State of Michigan auditors the payments Morrison received from David.
“Our community deserves school systems free of corruption,” said U.S. Attorney Ison. “This prosecution demonstrates our commitment to ensure that public officials in our educational systems put the interests of our children first.”
“Mr. David guaranteed he would receive work funded by Madison District Public Schools not by participating in a fair and transparent process, but by bribing those in positions of power,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “Public corruption is one of the FBI’s top investigative priorities because of the negative impact corruption has on the public’s faith in government agencies. The FBI, IRS, and Department of Education Office of Inspector General will continue to work cooperatively to hold those who engage in corrupt practices in our education system accountable for their crimes.”
Sentencing is set for August 14, 2023 at 1 PM.
The investigation of this case was conducted by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the Department of Education. It is prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, Karen Reynolds, and Gjon Juncaj.
Serial Carjacker who Shot and Pistol-Whipped Victims Sent to PrisonRead the Press Release
DETROIT – A Detroit man was sentenced today to 25 years in prison for charges relating to three separate violent carjackings in June and July 2020, United States Attorney Dawn N. Ison and Wayne County Prosecutor Kym Worthy announced today.
Worthy and Ison were joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Detroit Police Chief James E. White.
Rayquan Sturgis, 23, had previously pleaded guilty in federal court to two counts of carjacking, one count of carjacking causing serious bodily injury, one count of discharging a firearm during and in relation to a crime of violence, and one count of using or carrying a firearm during and in relation to a crime of violence. Sturgis was sentenced by United States District Judge Sean F. Cox.
Sturgis was initially charged with one of the carjackings by the Wayne County Prosecutor’s Office. However, Wayne County dismissed the carjacking charge so that it could be included with federal gun and carjacking charges in the federal case. “This is an example of the excellent collaboration between Prosecutor Worthy’s office and my office,” U.S. Attorney Ison said. “This collaboration was critical in obtaining this significant federal sentence that was handed down today and will be critical in our approach to violent crime going forward.”
According to the court documents, in three separate incidents, Sturgis carjacked three people after each of them had tried to help him in different ways. On June 10, 2020, the first victim offered him a ride after he was in a crash. After she drove him 15 minutes away, Sturgis pointed a gun at her and forced her out of her car and drove away. On June 18, 2020, Sturgis approached the second victim and asked for help jumpstarting his car. After driving Sturgis a few blocks, Sturgis got out of the car, walked around to the driver’s side and shot the victim multiple times without even giving him a chance to surrender. The victim suffered permanent injuries from the gunshot wounds. And on July 7, 2020, Sturgis was given a ride by the third victim from Inkster to Detroit. When they arrived in Detroit, Sturgis pistol whipped the victim while he was driving, stole his sunglasses, and then pistol whipped him again and forced him out of the car and drove off.
Two of the carjackings, including where Sturgis shot the victim, went unsolved for nearly a year. The U.S. Attorneys Office, FBI, and Detroit Police continued to investigate the case and were able to identify Sturgis as the perpetrator after interviewing additional witnesses and collecting evidence from Sturgis’s social media accounts and phone records linking him to the crimes.
“Individuals who assault and carjack the citizens of this district will not escape the dedicated and persistent employees of the Department of Justice, the Detroit Police Department, and the Wayne County Prosecutor’s Office. This case is a prime example of how my office and our federal and local law enforcement partners will work tirelessly to prosecute those who use firearms to terrorize the citizens of our community,” U.S. Attorney Ison said.
“Sometimes it takes a village working together collaboratively to keep the community safe. These cases are a good example of this. A dangerous predator will no longer be free to prey on others,” said Wayne County Prosecutor Kym Worthy.
“Armed carjacking poses an unacceptable danger to public safety and creates a climate of fear for residents in our community,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “This case serves as an example of the collaboration between the FBI and the Detroit Police Department to bring justice to bear upon violent criminals like Rayquan Sturgis who use firearms to victimize innocent people.”
The investigation of the case was conducted by special agents and task force officers of the Federal Bureau of Investigation and officers with the Detroit Police Department. Assistant United States Attorney Andrew Picek prosecuted this case for the United States.
Detroit Street Gang Leader Sentenced to Life Imprisonment Following Convictions at Trial for Racketeering and MurderRead the Press Release
DETROIT – A 38-year-old Detroit man was sentenced to life imprisonment today for murder, racketeering, narcotics trafficking, and other gang related crimes, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Evidence at trial showed that Duane Peterson acted as the leader of “It’s Just Us” (IJU), a violent street gang. At its peak, the gang boasted 40 members. IJU terrorized the Detroit community from 2014 through the beginning of 2019 by engaging in violent acts, obstruction of justice, and witness intimidation. In May 2017, IJU ambushed a 33-year-old Detroit man for allegedly disparaging an IJU associate. Peterson chased the man down and executed him, shooting him in the back of the head while he lay dying on the ground.
In March 2018, Peterson and another IJU member opened fire on a carful of innocent bystanders who happened to be stopped at a red light and saw Peterson beating a female in a liquor store parking lot.
Evidence at trial also showed that Peterson ran a heroin/fentanyl drug conspiracy, with at least fifteen IJU members and associates distributing the deadly drugs in Detroit, Jackson, Flint, Ohio, West Virginia, and Kentucky.
Eight defendants were charged in the case. Seven previously pleaded guilty; only Peterson proceeded to trial.
United States District Judge Robert H. Cleland sentenced Peterson to life imprisonment.
“Thanks to a team effort from multiple federal, state, and local agencies, a violent gang leader has been permanently removed from the streets. Violent gang activity and dangerous narcotics trafficking will not be tolerated in our community,” U.S. Attorney Ison said.
“Duane Peterson was found guilty of committing multiple crimes, including murder, as the leader of the IJU street gang, and for those crimes he will spend the rest of his life in prison,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “Violent street gangs like IJU threaten the safety and security of everyone in our community. The FBI, alongside federal, state, and local law enforcement agencies across the country, will continue to target and dismantle gangs that wreak havoc on our neighborhoods.”
This case was investigated by the Federal Bureau of Investigation, with assistance from the Drug Enforcement Agency, Detroit Police Department, Jackson County Sheriff’s Office, and many other state and local agencies in Michigan, Ohio, West Virginia, and Kentucky. The case was prosecuted by Assistant U.S. Attorneys Maggie Smith and Eaton Brown.
Two Detroit Men Sentenced to Prison for Spree of Three CarjackingsRead the Press Release
DETROIT – Two Detroit men were sentenced to multiple years in federal prison after having pleaded guilty to a series of three carjackings occurring in a three-day period, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Damario Howell, 21, was sentenced today to 14 years in federal prison. Seandre Braxton, 24, was sentenced in February of this year to 15 years in federal prison. Both were sentenced before United States District Judge Judith Levy.
According to court records, Braxton and Howell committed the first carjacking on September 29, 2021, and the second and third carjackings on October 1, 2021, all in Detroit. In the first carjacking, Braxton and Howell pointed handguns at the victim seated in his car and removed the victim from the vehicle before Howell drove off. In the second carjacking, Braxton and Howell, while armed with handguns, confronted a victim outside his car and demanded the keys before Braxton drove off in the victim’s car. In the third carjacking, Braxton and Howell seized a third car after confronting the victims at gunpoint, with Braxton driving off with their car.
Minutes after the third carjacking, Howell fled from police by smashing the car from the second carjacking into a police car, driving off in a highspeed chase, exiting the car, and entering the car from the third carjacking driven by Braxton. Braxton drove off in another highspeed chase that ended when Braxton crashed the car into two other vehicles. Following a short foot chase, both Braxton and Howell were arrested.
Braxton and Howell both pleaded guilty to three counts of carjacking, one count of carrying a firearm while committing a carjacking, and one count of brandishing a firearm while committing a carjacking. Braxton and Howell’s sentencing guidelines were increased for reckless endangerment during flight because of the highspeed chases.
“Carjacking is one of the most brazen crimes. These defendant’s carjacking spree not only endangered their victims, but their reckless indifference also created a significant risk of harm across the community,” said U.S. Attorney Ison. “We will seek significant federal penalties against those who prey on motorists in our communities.”
Armed carjacking poses an unacceptable danger to public safety and creates a climate of fear for residents in our community," said James A. Tarasca, Special Agent in Charge of the FBI's Detroit Field Office. "The FBI remains committed to working alongside the Detroit Police Department and Michigan State Police to curb these violent offenses and bring the perpetrators to justice."
This case was investigated by the FBI Violent Crime Task Force, Detroit Police Department, and Michigan State Police, and prosecuted by Assistant United States Attorney Paul Kuebler.
Registered Sex Offender Sentenced to Prison for Sexual Exploitation of a MinorRead the Press Release
DETROIT – A repeat sex offender was sentenced today to 25 years in federal prison for sexual exploitation of children, announced United States Attorney Dawn N. Ison.
Ison was joined in her announcement by Angie M. Salazar, Special Agent in Charge of Homeland Security Investigations Detroit Field Office.
Charles Robert Taylor, Jr., 35, of Detroit, had been convicted of causing a 10 year old minor to engage in sexually explicit conduct with an adult female so that he could create a video on his cellular phone. Taylor then distributed the video to at least one other person.
Taylor committed this offense while on parole as a registered sex offender. This incident was the second time Taylor’s parole was revoked for this type of conduct, and Taylor was out of prison for less than one year when he committed this offense. Taylor was sentenced by United States District Court Judge Victoria A. Roberts.
“This offender committed a horrific act, an offense made even more serious because he did so while on supervision for another sex offense. This sentence will protect the public and demonstrates our commitment to keep children safe,” stated U.S. Attorney Ison.
“Taylor’s heinous actions and the fact that he committed them while on parole for other sex crimes is evidence of the danger he poses to our communities,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “We will continue to prioritize the innocence and well-being of children by diligently investigating sexual offenses involving minors.”
The case was investigated by Homeland Security Investigation. The case was prosecuted by Assistant United States Attorney Christopher Rawsthorne.
Straw Purchaser of Gun that Killed Detroit Police Officer Sentenced to PrisonRead the Press Release
DETROIT – A Detroit man was sentenced today to two years in prison for purchasing a Draco pistol for his friend, Ehmani Davis, who would go on to use the firearm in the killing of Detroit Police Officer Loren Courts, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Craig Kailimai Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Explosives, and Firearms.
Sheldon Thomas, age 27, of Detroit, Michigan, was sentenced by United States District Judge Gershwin Drain. According to court documents and statements made in court, on June 7, 2022, Thomas bought a Century Arms Draco pistol in Eastpointe, Michigan. Thomas admitted to lying on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Record Form 4473, by falsely certifying that he was the buyer of the firearm when he knew he was purchasing it for Ehmani Davis.
Thomas gave Davis the firearm on the day of the purchase. Thomas admitted that Davis gave him the money to buy the firearm. Thomas further admitted that he made multiple attempts to purchase a handgun for Davis.
“The tragic death of Detroit Police Officer Loren Courts is another terrible example of what happens when guns are supplied to those who are prohibited from possessing them,” said U.S. Attorney Ison. “Fighting violent crime is a top priority in our office, and we are committed to holding accountable those who engage in illicit firearm transactions.”
“The loss of Detroit Police Officer Courts was a tragedy that could have been prevented. There are serious consequences that can come from illegally purchasing firearms for prohibited individuals. A critical part of ATF’s mission is to stop violent criminals from possessing firearms before a loss of life occurs,” said, Assistant Special Agent in Charge Craig Kailimai “We will continue to work side by side with our U.S. Attorney’s, federal, state, and local law enforcement partners to make our communities safer.”
This case was investigated by the Bureau of Alcohol, Tobacco, Explosives, and Firearms. The case was prosecuted by Assistant U.S. Attorney Barbara Lanning.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Detroit Man Pleads Guilty to Stealing $1.6M in Unemployment Insurance BenefitsRead the Press Release
DETROIT – A Detroit man pleaded guilty today to wire fraud and aggravated identity theft arising out of a scheme to defraud multiple states out of more than $1.6 million in pandemic-related unemployment insurance benefits, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General, and Special Agent in Charge John Marengo of the United States Secret Service’s Detroit Field Office.
Darren Smith, 36, entered his guilty pleas before United States District Judge Terrence G. Berg.
According to court records, beginning as early as May 2020 and continuing through at least July 2020, Smith, with the intent to defraud, filed approximately 250 fraudulent unemployment insurance (UI) claims seeking pandemic unemployment assistance (PUA) benefits to which he was not entitled. Smith submitted the fraudulent claims in the names of multiple individuals, using their Social Security Numbers and other personal identifying information, without their authorization or consent. The fraudulent UI benefits were paid out via debit cards, which Smith then used to repeatedly withdraw the funds via ATMs located in the Eastern District of Michigan.
United States Attorney Ison stated, “This case reflects our ongoing commitment to prosecute those who took advantage of the Covid-19 pandemic by stealing funds intended for those in need. We treat this kind of fraud especially seriously because corruption within these programs undermines trust and confidence in government programs generally. My office will remain vigilant in the pursuit of those who cheat the government and their fellow citizens.”
“Darren Smith engaged in an unemployment insurance fraud scheme that targeted multiple state workforce agencies. Smith submitted false unemployment insurance claims in the names of identity theft victims to obtain debit cards loaded with stolen unemployment benefits. We will continue to work with our law enforcement partners to safeguard the unemployment insurance system from those who exploit these benefit programs,” said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General.
“The U.S. Secret Service continues to work with our law enforcement partners on UIA Fraud schemes. We are thankful to the US Attorney’s Office and Department of Labor for partnering with us in the investigation and prosecution of this case,” said Special Agent in Charge Marengo.
Smith faces a statutory maximum penalty of 20 years imprisonment on the charge of wire fraud and a mandatory minimum sentence of 2 years imprisonment on the charge of aggravated identity theft. Per the terms of his plea agreement, Smith will also be required to pay restitution to the victim states in the total amount of $1,611,648. Sentencing is set for August 17, 2023, at 2pm.
This case was investigated by the U.S. Department of Labor Office of the Inspector General and the U.S. Secret Service. The case is being prosecuted by Assistant United States Attorney Sarah Youngblood and Special Assistant United States Attorney Corinne M. Lambert.
St. Clair Shores Physician Convicted of Causing Patient’s Drug Overdose Death and Prescription Drug OffensesRead the Press Release
DETROIT – Former St. Clair Shores physician Bernard Shelton, 66, was convicted today by a federal jury in Detroit on twenty-one charges related to the unlawful distribution of prescription drugs. He was also convicted of a patient’s overdose death that resulted from his unlawful prescribing, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Special Agent in Charge Orville O. Greene, Drug Enforcement Administration, Detroit Field Division.
The trial began on February 28, 2023 and was conducted before United States District Judge Denise Page Hood.
The evidence demonstrated that Shelton prescribed over 5.5 million doses of controlled substances between April 2013 and December 2016. Shelton prescribed over 2.7 million doses of Schedule II controlled substances such as oxycodone and hydrocodone, usually prescribing the types and strengths of drugs most valuable on the street market. When an undercover patient made an initial visit to Dr. Shelton complaining of back stiffness, Dr. Shelton did not examine the patient’s back, but instead asked “What can I give you today” before prescribing the requested narcotics. The jury found that Dr. Shelton issued twenty-one prescriptions to seven different patients outside the usual course of professional practice and for no legitimate medical purpose so he could charge for office visits and tests. Shelton received over $1.4 million from Medicare, Medicaid, and Blue Cross/Blue Shield of Michigan during the same time period.
Shelton began prescribing opioid pain relievers in 2010 to a patient whose pain was previously treated by prescription strength Motrin. Shelton prescribed increasingly stronger controlled substances over the next six years, and the patient became addicted to the drugs. On January 14, 2016, Shelton unlawfully prescribed an increased dosage of oxycodone to the 54-year-old patient. The patient filled the prescription on January 18, 2016. The patient suffered an overdose two days later, but received Narcan and survived. A second oxycodone overdose four days later, on January 24, 2016, was fatal.
Based on the jury’s verdict, Shelton will be sentenced to a mandatory minimum sentence of twenty years in prison, with a maximum sentence of life. Shelton will be sentenced in July, 2023.
Due to licensure actions, Shelton has been unable to prescribe controlled substances since January 2017.
“Doctors who dangerously prescribe opiates for their own profit endanger the community just like other drug dealers. When a doctor causes an overdose death with an illegitimate prescription, we will not hesitate to hold the doctor accountable,” stated U.S. Attorney Ison. “My office is committed to keeping highly addictive opioids off the street, and we will aggressively investigate and prosecute medical professionals or anyone else who illegally distribute controlled substances.”
“The DEA, through regulation and enforcement, will continue to collaborate with our law enforcement and regulatory partners to investigate and eventually prosecute medical professionals who use their position to conceal the unlawful diversion and distribution of prescription drugs,” said Special Agent in Charge Greene.
The case was investigated by agents of the Drug Enforcement Administration, with assistance from the St. Clair Shores police department and Blue Cross Blue Shield of Michigan. The trial was prosecuted by Assistant United States Attorneys Wayne F. Pratt and Lisandra Fernandez-Silber.
Ypsilanti Man Pleads Guilty to Lying About His Work on a Classified Naval Project for a Foreign Country During Application Process for a U.S. Navy JobRead the Press Release
DETROIT – An Ypsilanti man pleaded guilty this week to making several false statements in his security clearance application for a job working with the United States Navy overseas, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
According to court records, Yifei Chu, age 57, a naturalized U.S. citizen and recent employee of the National Oceanic and Atmospheric Administration (NOAA), applied for a three-year detailed assignment to the United States Embassy in Singapore working for the United States Navy. To obtain this position, Chu was required to apply for and obtain a security clearance. Chu made several false statements in his security clearance application during an interview with federal background investigators and in an affidavit he signed regarding his security clearance application.
Chu’s false statements were made to hide his extensive contacts with members of the Taiwanese Navy and a Taiwanese company. These contacts included the fact that Chu was hired by the Taiwanese company to provide consulting services on a “classified” Taiwanese Navy project, was paid money by the Taiwanese company, and that he traveled to Taiwan on multiple occasions to meet with members of the Taiwanese Navy on a military base in Taiwan in performance of his consulting services.
Chu pleaded guilty to both counts charged in the indictment: (1) making false statements and (2) falsifying records in a federal investigation. Chu faces a maximum sentence of five years in prison on the false statements charge, and a maximum of twenty years in prison on the false record in a federal investigation charge. Sentencing is set for August 15, 2023 before United States District Judge Victoria A. Roberts.
“It is vital that those individuals who gain access to classified information related to our national defense are truthful and honest about their connections to foreign governments so that our nation’s military secrets do not end up in the wrong hands,” said United States Attorney Dawn N. Ison.
“This case is about more than just lying on a job application,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “In order to obtain a position with the U.S. Navy, Chu attempted to hide his extensive contacts with the Taiwanese government, potentially giving them access to our nation’s classified information and military technology. The FBI continues to work tirelessly to ensure only the most trusted people have access to the U.S. Government’s sensitive information.”
The case was investigated by the FBI and handled by Assistant United States Attorney Ronald Waterstreet.
Tuscola Man Sentenced to 27 years in Prison for the Sexual Exploitation of ChildrenRead the Press Release
BAY CITY – A Tuscola County man, who went by the online moniker “thefundad,” was sentenced this week to 27 years in prison for sexually exploiting two 13-year-old girls, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Angie M. Salazar, Special Agent in Charge of Homeland Security Investigations, Detroit Field Office.
Brian Siwka, age 39, of Reese, Michigan, was sentenced by United States District Judge Thomas L. Ludington. Siwka sexually exploited two 13-year-old girls that he found through the “Kik” social media application. He engaged in sexual chats with both girls and made them take sexually explicit photographs of themselves and send them to him over the internet via Kik. Siwka further admitted that he had produced nearly two dozen recordings of other minors online, whom he had also made engage in sexually explicit conduct for him. At the time of his arrest in September 2020, Siwka was in possession of 178 images of child pornography and 21 videos of children engaging in sexually explicit conduct at the urging of Siwka on his laptop.
“This defendant repeatedly sought out, groomed, and sexually exploited multiple children whom he met online,” U.S. Attorney Ison said. “Our work rooting out these online sexual predators seems never-ending, but my office will not stop bringing online sexual predators and all who prey on our children to justice.”
“Our agents and partners will continue to identify and apprehend these predators within our communities and work to bring them to justice,” said Angie M. Salazar, Special Agent in Charge of Homeland Security Investigations, Detroit Field Office. “It is my hope that this sentencing brings some measure of peace to these victims and deters others from targeting children online.”
This case was investigated by Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Ann Nee.
Flint Convenience Store Operator Pleads Guilty to $1.1 Million Nutrition Benefits Fraud SchemeRead the Press Release
FLINT – A Flint convenience store operator pleaded guilty this week to engaging in more than $1.1 million in fraudulent transactions involving food and nutrition benefit programs, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Shantel R. Robinson, Special Agent-in-Charge of the U.S. Department of Agriculture, Office of Inspector General, Midwest Region.
Ranjit (“Nancy”) Ghotra, age 33, formerly of Swartz Creek, Michigan, pleaded guilty to wire fraud before United States District Judge F. Kay Behm. Ghotra assisted in the operation of Cheers Market, a convenience store in Flint, Michigan.
According to the information provided to the Court at the guilty plea hearing, Ghotra engaged in a fraud scheme involving the Supplemental Nutrition Assistance Program (SNAP) and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) program. These programs are funded by the U.S. Department of Agriculture and provide benefits to raise the level of nutrition of low-income households and children.
As part of the scheme, Ghotra permitted beneficiaries of the SNAP and WIC programs to use their benefits to buy ineligible items, such as alcohol and tobacco, or allowed them to obtain cash instead of food products, in violation of program regulations. In each case, Ghotra charged program beneficiaries approximately double the amount in benefits as the price of the ineligible items purchased or the cash provided. Between 2017 and 2020, Ghotra carried out more than $1.1 million in fraudulent SNAP and WIC transactions.
While the federal prosecution was pending, Ghotra purchased an international plane ticket and attempted to leave the country in violation of her bond conditions. She was arrested at the gate at Chicago O’Hare International Airport with the assistance of Homeland Security Investigations and Customs and Border Patrol agents, and returned to Michigan.
Ghotra faces a statutory maximum penalty of 20 years in prison for wire fraud. Judge Behm will ultimately determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Ranjit Ghotra spent years defrauding benefits programs that were intended to assist low-income households, and especially children,” U.S. Attorney Ison said. “This guilty plea reflects my office’s commitment to protecting the integrity of federal programs that help ensure that everyone can afford to provide their families with healthy, nutritious food.”
“This investigation and prosecution should serve as warning to all stores participating in the WIC and SNAP programs as vendors that fraud and trafficking—the purchase of WIC and SNAP benefits for cash—will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney's Office, and its stakeholders. The USDA-OIG thanks the U.S. Attorney's Office, who prosecuted this case, Homeland Security Investigations, and Genesee County Sheriff’s office for their assistance with the investigation,” said Shantel R. Robinson, Special Agent-in-Charge of the U.S. Department of Agriculture, Office of Inspector General, Midwest Region.
This case was investigated by the U.S. Department of Agriculture, with assistance from Homeland Security Investigations and the Genesee County Sheriff’s office. The case is being prosecuted by Assistant U.S. Attorneys Ann Nee and Adriana Dydell.
Federal Inmate Pleads Guilty to Murdering Fellow InmateRead the Press Release
DETROIT – A federal inmate pleaded guilty today to murdering a fellow inmate at the Milan Correctional Institution in Milan, Michigan, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Jonathan Hemingway, Warden, Milan Federal Correctional Institution.
Alex Albert Castro, 42, a former resident of Fontana, California, pleaded guilty today to second degree murder before United States District Court Judge Jonathan J.C. Grey.
According to court records, on January 2, 2019, Castro, along with co-defendants Jason Kechego, 41, and Adam Taylor Wright, 42, killed fellow inmate Christian Maire. Castro repeatedly stabbed Maire while Kechego and Wright kicked and stomped him in the head. Castro, along with his two co-defendants, then threw Maire’s body down a flight of stairs. Maire died from multiple stab wounds (28 total) and blunt force trauma to the head from being thrown down the stairs.
Castro’s plea agreement calls for a possible sentence of up to life in prison, which could be imposed concurrently, partially concurrently, or consecutively to the 42-year sentence Castro is already serving for his underlying 2017 federal drug trafficking conviction.
In 2022, Wright pleaded guilty to second degree murder and was sentenced to just over 24 years of imprisonment. Kechego was convicted at trial of second degree murder and sentenced to 28 years of imprisonment. At that same trial, the jury was unable to agree on a verdict for Castro and a mistrial was declared.
“This savage crime deserves the most serious of consequences. My office is committed to preventing violence wherever it occurs. These convictions show that we will not turn a blind eye to this type of conduct and will aggressively prosecute violence within our prisons,” said U.S. Attorney Ison.
“The senseless murder committed by Mr. Wright and his codefendants jeopardized the safety of corrections officers, staff, and inmates,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI will continue to work with the Bureau of Prisons to hold violent offenders accountable for the crimes they commit while behind bars.”
Sentencing has been set for July 28, 2023 at 10am.
This case was investigated by special agents of the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Frances Lee Carlson and Andrew R. Picek.
Fentanyl Trafficking Kingpin Sentenced to 22 Years in Federal Prison for Overseeing a Sprawling Drug and Money Laundering ConspiracyRead the Press Release
DETROIT – A previously convicted drug trafficker was sentenced to 22 years in federal prison for leading a drug organization with international ties that trafficked fentanyl, heroin, and cocaine across the country, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Orville O. Greene, Special Agent in Charge of Drug Enforcement Administration, Detroit Division, and Charles E. Miller, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigations, Detroit Division.
Maurice Montain McCoy, Jr., 41, of Moreno Valley, California, led a drug and money laundering conspiracy that had distribution hubs in multiple cities across the United States, including Novi, Michigan. The DEA seized more than 30 kilograms of fentanyl and over half a million dollars in cash from the organization’s stash house in Novi. At the time, the DEA’s seizure was the largest fentanyl seizure in Michigan and one of the largest in the United States. The seizure was the result of creative investigative work by federal agents. They traced a UPC code off a Sony PlayStation box that was used to deliver heroin to a drug customer. That UPC code led to the Novi condominium where the PlayStation was active. Agents identified couriers who crisscrossed the United States delivering kilograms, transporting bulk currency, or laundering money, leading to multiple arrests and additional seizures in Indianapolis, Indiana, and Baltimore, Maryland, where the organization also operated. All identified couriers and large-scale drug customers who were indicted have pleaded guilty. McCoy directed the organization’s activity and lived lavishly off the proceeds, purchasing a Porsche Panamera, expensive jewelry, including diamond and gold pendants for some members of his drug organization, and a half million-dollar home in the greater Los Angeles area.
McCoy, who previously served ten years in federal prison for a drug conviction in California, faced a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison. McCoy was sentenced by United States District Judge Terrence G. Berg.
“Fentanyl is now the leading cause of overdose deaths. The number of lives saved by this seizure is inestimable. Our office will hold drug traffickers accountable for exposing our community to dangerous drugs,” stated United States Attorney Dawn Ison.
“The sentencing of Mr. McCoy should serve as a reminder to those who choose to traffic poison in our communities, that they will be held accountable,” stated Orville O. Greene, Special Agent in Charge of Drug Enforcement Administration, Detroit Division. “Mr. McCoy, having served a prior term in federal prison, was well aware of the potential consequences of his actions. The DEA will continue to work with our federal, state and local partners to target the sources of supply and their drug trafficking networks throughout the state of Michigan and elsewhere.”
“The role of IRS Criminal Investigation in narcotics investigations is to follow the money so we can financially disrupt and dismantle international drug trafficking organizations,” said Charles Miller, IRS Criminal Investigation, Acting Special Agent in Charge, Detroit Field Office. “We are proud to work hand-in-hand with our law enforcement partners to bring these criminals to justice.”
The case was investigated by agents of Drug Enforcement Administration and Internal Revenue Service as part of the Organized Crime Drug Enforcement (OCDETF) Southeast Regional Strike Force. Assistant United States Attorneys Andrea Hutting, Craig Wininger, and Gjon Juncaj prosecuted the case for the United States.
Covenant Healthcare System and Physicians Pay over $69 Million to Resolve False Claims Act Allegations Related to Improper Financial RelationshipsRead the Press Release
DETROIT – A regional hospital system and two physicians have paid over $69 million in three related civil settlements to resolve possible False Claims Act violations, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Special Agent in Charge Mario M. Pinto of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Chicago Regional Office, Special Agent in Charge Scott Pierce, United States Postal Service Office of Inspector General, Central Area Field Office and Special Agent in Charge Patrick J. Hegarty, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Northeast Field Office.
Covenant Healthcare System, a regional hospital system based in the Saginaw, Michigan area, paid $69 million to resolve allegations under the False Claims Act of improper financial relationships with eight referring physicians and a physician-owned investment group, resulting in the submission of false claims to the Medicare, Medicaid, TRICARE, and FECA programs. Two of these physicians, neurosurgeon Dr. Mark Adams and electrophysiologist Dr. Asim Yunus will pay the United States $406,551.15 and $345,987.54, respectively, to resolve allegations related to their relationships with Covenant.
The Anti-Kickback Statute (“AKS”) prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally-funded programs. The Physician Self-Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper financial arrangement, including the payment of compensation that exceeds the fair market value of the services actually provided by the physician and the provision of free or below-market rent. Both the Anti-Kickback Statute and the Stark Law are intended to ensure that physicians’ medical judgments are not compromised by improper financial incentives and instead are based on the best interests of their patients.
The settlement with Covenant resolves the following allegations:
- At various points between 2006 to 2016, Covenant had contracts with Asim Yunus, M.D., Kimiko Sugimoto, M.D., Sujal Patel, M.D., Sussan Bays, M.D., Guy Boike, M.D., and Thomas Damuth, M.D. to serve as medical directors, and none of these arrangements satisfied any exceptions to the Stark Law or the AKS, such that referrals these physicians made to Covenant violated the False Claims Act.
- From June 1, 2006, to December 14, 2009, Covenant employed Mark Adams, M.D., and this financial relationship did not satisfy any exception to the Stark Law, such that referrals for designated healthcare services by Adams to Covenant were prohibited and violated the False Claims Act.
- From January 21, 2009, through July 31, 2013, Covenant rented office space to Ernie Balcueva, M.D. Covenant forgave Balcueva’s rent payments, constituting remuneration that Covenant paid in exchange for referrals from Balcueva in violation of the AKS and the False Claims Act, and creating a financial relationship that did not meet any exception to the Stark Law, also violating the False Claims Act.
- Covenant permitted Covenant Physician Investment Group (“CPIG”), a group owned by Covenant-employed physicians for the purpose of purchasing large medical equipment that CPIG would lease to Covenant, to secure an equipment lease through non-arm’s-length negotiations, in order to induce referrals of patients from these physicians, in violation of the AKS and the False Claims Act.
As a result of this settlement, which was finalized in 2021, Covenant paid the United States $67,191,436.39 and the State of Michigan $1,808,563.61. This settlement remained under seal while the United States continued its investigation into Adams and Yunus, which led to the settlements with Adams and Yunus. Consistent with the terms of their respective settlement agreements with the United States, Adams paid the United States $406,551.15, and Yunus will pay the United States $345,987.54.
“Improper financial relationships and kickbacks undermine the integrity of federally-funded healthcare programs by influencing physician decision making,” said U.S. Attorney Ison. “This outcome emphasizes our Office’s commitment to pursuing justice against parties on both sides of those relationships—the hospital seeking to influence the physician via certain compensation schemes and the physician accepting the compensation.” U.S. Attorney Ison added, “I would like to commend the new leadership at Covenant for making things right once its past wrongdoing was brought to its attention by federal investigators.”
“Financial relationships that are based solely on monetary gain undermine the trust that we place in our nation’s medical providers and can result in costly reductions to our Federal health care programs,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General. “We will continue to work together with our law enforcement partners to ensure the appropriate use of taxpayer dollars.
“These settlements send a clear message to healthcare providers that the government is vigilantly protecting federal benefit programs,” said Special Agent in Charge Scott Pierce of United States Postal Service Office of Inspector General, Central Area Field Office. “The USPS OIG appreciates our law enforcement partners for their commitment and efforts in this investigation. The USPS OIG will continue to vigorously investigate those who engage in activities that harm federal benefit programs and the U.S. Postal Service.”
"Protecting TRICARE, the healthcare system for military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General," stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. "The settlements announced today demonstrate our ongoing commitment to work with the Department of Justice and our law enforcement partners to investigate allegations of improper financial relationships that place unnecessary financial pressure on the TRICARE system."
The civil settlements resolve the claims brought by Stacy Goldsholl, M.D., under the qui tam or whistleblower provisions of the False Claims Act. Under these provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Goldsholl v. Covenant Healthcare System, et al., No. 12-15422 (E.D. Mich.). The whistleblower will receive a combined $12,384,927.36 from the three settlements. The claims resolved by the settlements are allegations only; there has been no determination or admission of liability.
The matter was investigated by Assistant U.S. Attorney Jonny Zajac of the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from HHS-OIG, the Defense Criminal Investigative Service, and the United States Postal Service-OIG.
U.S. Attorney’s Office Resolves ADA Complaint Alleging That Local Doctor’s Office Failed to Provide Sign Language InterpreterRead the Press Release
DETROIT –The United States Attorney’s Office for the Eastern District of Michigan resolved its investigation of Dearborn Obstetrics and Gynecology, P.C. The complainant, who is deaf and utilizes American Sign Language (ASL) as her primary means of communication, alleged that Dearborn Obstetrics failed to provide her with free ASL interpretation services and dismissed her as a patient due to her disability. The voluntary resolution agreement between the U.S. Attorney’s Office, the U.S. Department of Health and Human Services Office for Civil Rights, and Dearborn Obstetrics requires the doctor’s office to fully comply with the non-discrimination requirements of the Americans with Disabilities Act of 1990 (ADA).
The ADA protects the rights of all individuals, regardless of disability, to fully and equally enjoy the benefits and services offered by places of public accommodation, which includes medical practices. It requires such places of public accommodation to provide the necessary auxiliary aids and services to ensure that communication with their patients is effective. The agreement emphasizes the practice’s commitment to ADA compliance going forward. Consistent with the ADA, the agreement requires Dearborn Obstetrics to provide ASL interpreters and other auxiliary aids and services free of charge when necessary.
“Individuals who have disabilities should not face additional barriers when accessing medical care,” U.S. Attorney Dawn N. Ison said. “To prevent such barriers, the Americans with
Disabilities Act requires effective communication with patients who are deaf or hard of hearing, such as the ASL interpreter that this patient needed.”Under the agreement, Dearborn Obstetrics will adopt new ADA policies and practices, train its staff on those polices, report any future complaints from individuals who have disabilities to the U.S. Attorney’s Office, and provide monetary compensation to the complainant.
The U.S. Attorney’s Office’s investigation was led by AUSA Michael El-Zein, a member of the Eastern District’s Civil Rights Unit. The full and fair enforcement of the ADA is a priority of the U.S. Attorney’s Office for the Eastern District of Michigan. The Civil Rights Unit was established in 2010 with the mission of prioritizing federal civil rights enforcement. For more information on the Office’s civil rights efforts, including a copy of the agreement, please visit https://www.justice.gov/usao-edmi/programs/civil-rights.
Individuals who believe they have been subjected to discrimination or have experienced a civil rights violation can submit a complaint with the U.S. Attorney’s Office by email at
[email protected] or by phone at (313) 226-9151. Complaints can also be submitted to the Civil Rights Division through its complaint portal.Repeat Sex Offender Sentenced to 20 Years in Prison for Sexually Exploiting Multiple ChildrenRead the Press Release
DETROIT – A Sterling Heights man, who qualifies as a repeat and dangerous sex offender, was sentenced today to 20 years in federal prison for sexually exploiting multiple children, announced United States Attorney Dawn N. Ison.
Ison was joined in her announcement by Angie M. Salazar, Special Agent in Charge of Homeland Security Investigations Detroit Field Office.
Thomas Neil, 42, of Sterling Heights, Michigan, admitted that in July 2020 he pretended to be a teenage female on the Instagram Internet messaging platform. Neil then tricked a 13-year-old male minor into creating sexually explicit images of himself and sending them to Neil.
The subsequent investigation determined that Neil used the same method to victimize approximately sixteen boys beginning as early as 2010. Neil often had the minors engage in behavior that would be humiliating or painful. According to Court records, Neil qualifies under federal sentencing guidelines as a repeat and dangerous sex offender based on his conduct.
Neil was sentenced by United States District Judge Terrence G. Berg.
“This investigation and subsequent prosecution ended this defendant’s repeated sexual exploitation of children. This significant sentence demonstrates that those that seek to harm our children through online exploitation will be held responsible. We will continue to work to make the Internet a safer place for our children,” stated U.S. Attorney Ison.
“Our communities are safer with predators like Neil off our streets, where he can no longer victimize innocent children,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “Our agents and partners will continue to do the work necessary to ensure predators are brought to justice and victims receive the care and assistance they need.”
The case was investigated by Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Christopher Rawsthorne.
Orion Township Man Sentenced to 15 Years for Distributing Child PornographyRead the Press Release
DETROIT – An Orion Township man was sentenced to 15 years in federal prison for distributing images of child pornography over the internet for the purpose of trading such images with other child predators, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Arron Robert Muhlitner, 27, was sentenced by United States District Judge David M. Lawson. Muhlitner had pleaded guilty to sending images of minors engaged in sexual acts to another person in order to induce that person to send Muhlitner similar images. Muhlitner used the internet messaging application Kik to trade the child pornography.
Muhlitner’s offense was discovered when an individual he knew found a phone belonging to Muhlitner and reviewed it. That person discovered images of child pornography and a conversation in which Muhlitner bragged about sexually assaulting a child in a manner that was similar to a sexual assault that he had previously been accused of committing. Law enforcement later examined the phone, finding numerous images of child pornography and multiple instances in which Muhlitner bragged about sexually assaulting children or expressing a desire to engage in sex acts with children. In total, Muhlitner’s phone contained 212 images and 58 videos of child pornography.
“Child pornography victimizes the most vulnerable and innocent in our community and protecting children from predators remains a critical mission for our office,” stated U.S. Attorney Ison. “Our community is now safer with this defendant’s lengthy sentence.”
“The significance of this sentence underscores the importance of keeping innocent children safe from dangerous predators and serves as a warning to those individuals who prey upon the most vulnerable in our society,” said James A. Tarasca, Special Agent in Charge of the FBI Detroit Field Office. “I would like to thank our law enforcement partners for their critical support in this investigation. The FBI continues to dedicate resources to the investigation and prosecution of sexual predators who commit crimes against children.”
“This person and his disgusting and abhorrent criminal behavior with children has rightfully been held accountable for his actions,” Oakland County Sheriff Michael Bouchard said. “I greatly appreciate the teamwork with our federal partners and the U.S. Attorney’s Office in bringing this case to closure.”
This case was investigated by the Federal Bureau of Investigation and the Oakland County Sheriff’s Office and was prosecuted by Assistant United States Attorneys Jeremiah Smith and Christopher Rawsthorne.Center Line Resident Sentenced in Unemployment Fraud SchemeRead the Press Release
DETROIT – A Center Line woman was sentenced to 18 months in prison today based on her conviction for stealing over $300,000 as part of a wire fraud scheme targeting pandemic unemployment assistance benefits, announced United States Attorney Dawn N. Ison.
Joining Ison in the announcement were James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Irene Lindow, Special Agent in Charge of the Chicago Region of the Department of Labor-Office of the Inspector General.
April Rienstra, 52, was sentenced by United States District Judge Bernard A. Friedman following her November 2022 guilty plea to one count of wire fraud arising from a scheme to defraud the Michigan Unemployment Insurance Agency (MUIA).
According to Court documents, between April 2020 and May 2021, Rienstra defrauded the MUIA by submitting false applications for pandemic unemployment benefits on behalf of herself and others (who paid her a fee). Ultimately, her scheme involved dozens of fraudulent claims and resulted in over $300,000 in losses to the MUIA.
In addition to the 18 months of imprisonment, Rienstra was ordered to pay $318,760 in restitution.
United States Attorney Ison stated, “Enhanced assistance for unemployed workers was a key lifeline for many of our district’s citizens during the pandemic. Unfortunately, those enhanced benefits attracted criminals seeking to exploit the system and enrich themselves at the public’s expense. Our office will remain vigilant in our pursuit of those who cheat the government and their fellow citizens.”
“Ms. Rienstra defrauded a system designed to provide much needed support to individuals who were unemployed because of the pandemic. Her actions potentially prevented those who legitimately needed financial support during difficult times from receiving vital assistance,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “The FBI and our partners are committed to holding those who defraud the government accountable for their crimes.”
“April Rienstra defrauded the State of Michigan Unemployment Insurance Agency of more than $300,000 by filing multiple fraudulent unemployment insurance claims that she was not entitled to. We will continue to work with our law enforcement partners and state workforce agencies to protect the integrity of unemployment insurance benefit programs," said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
The case was prosecuted by Assistant United States Attorney Alyse Wu. The investigation was conducted jointly by the FBI and the Department of Labor, Office of Inspector General.Parolee Who Robbed a Pharmacy at Gunpoint While Wearing a GPS Tether Sent to PrisonRead the Press Release
DETROIT – A Clinton Township man was sentenced today to 171 months in federal prison based on his conviction for robbing a Hamtramck pharmacy and other related drug offenses, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Chief Ann Moise of the Hamtramck Police Department.
Marcus McBride, Jr., 29, who previously pleaded guilty to possession with intent to distribute a controlled substance, robbery involving a controlled substance, and use of a firearm in relation to a crime of violence, was sentenced by U.S. District Court Judge Mark A. Goldsmith.
According to court documents, McBride robbed the Hoover Pharmacy, located at 2930 Holbrook Avenue, Hamtramck, Michigan, on June 10, 2020. After entering the pharmacy, McBride waved a semiautomatic pistol at customers and yelled, “Get down!” He then approached the counter and pointed the firearm at the pharmacist and stated, “Give me 30’s and 40’s!” The pharmacist grabbed a box of medication which contained Oxycodone and Oxymorphone prescriptions and handed it to him. McBride snatched the box and fled the pharmacy. McBride took approximately 3,937 pills, with a street value of over $100,000. The FBI executed federal search warrants at McBride’s home and another location as part of this investigation and seized a handgun, pills, and over $17,000 in cash. On the date of the robbery, McBride was wearing a Michigan Department of Corrections GPS monitoring device as a condition of his parole for a prior offense. The GPS coordinates confirmed he was at the pharmacy at the approximate time of the robbery.
In addition to the robbery and gun charges, McBride, along with co-defendant Patrick Johnson, pleaded guilty to charges in connection with a previous narcotics trafficking incident that occurred near the Greyhound bus station in Detroit. McBride was in a vehicle driven by the Johnson and had unsuccessfully attempted to board a bus headed to Alabama with 330 oxycodone pills and a bag of fentanyl.
“This case illustrates my office’s commitment to partnering with local, state, and federal law enforcement agencies to combat violent crime and drug trafficking. The cooperation between the Hamtramck Police Department, Michigan Department of Corrections, the FBI, and our office resulted in violent offenders being taken off the streets,” U.S. Attorney Ison said.
“The impact of McBride’s crime on the community is much more consequential than the thousands of dollars of narcotics he stole,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “He terrorized customers and employees with a gun, making them feel unsafe in their own neighborhood. The FBI is committed to working with our partners from the Hamtramck Police Department to get violent criminals like this defendant off the streets.”
The investigation of the case was conducted by special agents and task force officers of the Federal Bureau of Investigation, officers with the Hamtramck Police Department, and the Michigan Department of Corrections. Assistant United States Attorneys Andrew Picek and Robert Moran prosecuted this case for the United States
Former Macomb County Public Works Commissioner Anthony Marrocco Sentenced to Prison for ExtortionRead the Press Release
DETROIT – Former Macomb County Commissioner of Public Works Anthony Marrocco was sentenced to three months in prison and fourteen months of home confinement for attempted extortion by withholding county permits from businessmen who refused to contribute to Marrocco’s campaign accounts, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Charles Miller, the Acting Special Agent in Charge of the IRS Criminal Investigation Detroit Field Office.
Marrocco, 73, of Ray Township, Michigan, was sentenced to prison by United States District Judge Robert H. Cleland at the Port Huron, Michigan Federal Courthouse. Marrocco also placed on supervised release for a period of two years with the first fourteen months to be served under home confinement, without access to the internet, sports, movies, or other entertainment. In addition, Marrocco was ordered to pay a $50,000 fine.
Marrocco served as the Commissioner of Public Works from 1993 through 2016. In September 2022, Marrocco pleaded guilty to Count Three of the Indictment charging him with attempted extortion of a Macomb County developer in April 2016. Marrocco admitted that he pressured the developer to spend thousands of dollars to purchase tickets to one of Marrocco’s fundraisers. Marrocco threatened to delay or withhold approval of county permits sought by the developer if he did not purchase additional tickets to Marrocco’s political fundraiser.
The extortion conviction of Marrocco is the final and most significant development in federal law enforcement’s years-long effort to aggressively investigate and prosecute corruption in Macomb County. Thus far in this effort, some twenty-two public officials and bribe-paying businessmen have been charged and convicted in connection with the Macomb County corruption probe, including three defendants convicted after jury trials, as well as the conviction and imprisonment of elected Macomb County Prosecutor Eric Smith.
The Macomb County investigation centered on corruption in suburban Detroit communities and in the City of Detroit in garbage-hauling, towing, and engineering contracts involving tens of millions of dollars. The investigation revealed that for years the owners of garbage-hauling, towing, and engineering companies were bribing elected public officials and police officers in order to secure lucrative contracts. Targets convicted in the prosecution included Chuck Rizzo, the CEO and multi-millionaire owner of one of the largest garbage-hauling companies in Michigan, Gasper Fiore, the CEO and multi-millionaire owner of the largest towing company in Michigan, and a Fazal Khan, the millionaire owner of an engineering consulting services firm. The investigation also uncovered significant wire fraud and embezzlement schemes whereby Rizzo and his father were stealing millions from company investors and the engineering partner was stealing a million dollars from his fellow partners. The investigation resulted in the conviction of nine public officials, including Detroit’s Deputy Chief of Police, eight elected officials, and the former Chief Engineer of Macomb County, Michigan. In total, the prosecution resulted in twenty-two criminal convictions of bribe payers and public officials. Significant events in the course of the investigation included (1) the conviction at trial in June 2018 of Clinton Township Trustee Dean Reynolds, for four bribery conspiracies and ten counts of bribery, involving the corruption of over $30 million worth of township contracts; (2) the 2021 conviction of elected and long-time Macomb County Prosecutor Eric Smith for obstruction of justice in connection with his embezzlement from his own campaign fund; and (3) the 2022 conviction of Marrocco for extortion.
United States Attorney Ison said, “Marrocco had exercised unchecked power over people just trying to do business in Macomb County. Although we are disappointed in the length of the Court’s sentence, through Marrocco’s conviction for extortion, he will no longer be able to demand obedience and respect from the district’s citizens.”
"Today, Mr. Marrocco has been held responsible for his part in a pervasive pattern of corruption and illegal practices by public officials in Macomb County," said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. "Public corruption is the FBI's number one criminal investigative priority because a lack of faith in government undermines our institutions, and we will continue to work with our law enforcement partners to address this issue until honest and responsible government is the order of the day in Macomb County and throughout the State of Michigan."
“Public officials, whether elected or appointed, hold positions of trust in the eyes of the public. Today’s sentence sends a clear message that when public officials commit crimes, they will be held accountable for that broken trust,” said Charles Miller, the Acting Special Agent in Charge of the IRS Criminal Investigation Detroit Field Office. "IRS-CI will continue to provide financial investigative expertise, as we work with our law enforcement partners to enforce the law and ensure public trust.”
The investigation in this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys Steven Cares and Robert Moran.
United States Attorney Dawn N. Ison Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
DETROIT - United States Attorney Dawn N. Ison announced that the U.S. Attorney’s Office for the Eastern District of Michigan has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy. The policy, which became effective in February, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
Crime Stoppers Tip Leads to Convicted Murderer Going Back to Prison for 15 yearsRead the Press Release
DETROIT – A Detroit man, who has five prior felony convictions, including for murder, assault with a dangerous weapon, and two drug trafficking offenses, was sentenced to 15 years in federal prison today as an Armed Career Criminal for his illegal possession of a firearm, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration, Detroit Division.
Eric T. Walker, 46, had previously pleaded guilty to being a felon in possession of a firearm and was sentenced today by U.S. District Court Judge Gershwin A. Drain.
According to court records, after receiving Crime Stoppers complaints that Walker was selling drugs from his home, and that one person nearly overdosed after buying his drugs, the Detroit Police Department executed a search warrant at his home. DPD recovered 136 grams of cocaine, 23.5 grams of heroin laced with fentanyl, 672 grams of marijuana, 93 oxycodone pills, 4.5 amphetamine pills, scales, drug packaging materials, and over $8,000 in cash. Officers also recovered a 9mm semiautomatic pistol loaded with 13 rounds of ammunition. Walker was arrested at his home, and the case was adopted for federal prosecution.
“Taking any and all violent offenders, including armed drug dealers, off our streets is a top priority of my office. Today’s sentence reflects my commitment to aggressively prosecute violent offenders of all kinds to make our neighborhoods safer for law abiding citizens. The citizens responsible for working to improve the quality of life in their neighborhood by reporting Walker’s conduct to Crime Stoppers should be commended,” U.S. Attorney Ison said.
“Mr. Walker continued his criminal activities despite being a convicted felon. While his lengthy sentence has removed a dangerous person from the neighborhood, it should also send a strong message to anyone who chooses to terrorize our communities with violence and illicit drugs,” said Special Agent in Charge Orville.
This case was investigated by the DEA. The case is being prosecuted by Assistant U.S. Attorney Robert Moran.
Former Detroit Police Officer Sentenced to 27 Months in Prison for Taking Bribes Connected to TowingRead the Press Release
DETROIT– A former Detroit police officer was sentenced to 27 months in prison for accepting bribes in a conspiracy with a Detroit police lieutenant in connection with corruption in the towing industry in Detroit, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Daniel Vickers, 54, of Livonia, Michigan, spent his career as a police officer in Detroit. Vickers conspired with former Detroit police lieutenant John F. Kennedy. Kennedy at one point commanded the department’s Public Integrity Unit, a division of the Internal Affairs Division responsible for investigating reports of law violations and professional misconduct by police officers and other city employees. The two agreed to commit bribery by accepting money and other items of value in exchange for Kennedy using and promising to use his influence as a supervisor to persuade other officers to make tow referrals to a towing company in violation of the city’s ordinance and Detroit Police Department policy. Kennedy pleaded guilty to the bribery conspiracy in August 2022, and he will be sentenced on April 18, 2023.
In recorded conversations during the investigation, Vickers admitted to soliciting bribe payments from at least three towing companies in the Detroit area. In addition to the cash payments Vickers solicited, he and Kennedy also agreed to accept bribes in the form of thousands of dollars in cars, car parts, car repairs, and new carpeting for Vickers’ home. Besides making illegal tow referrals in exchange for the bribes, Vickers and Kennedy also agreed to provide the towing company that Kennedy was investigating with confidential information about the status of the Public Integrity Unit’s case.
In total, between February 2018, and June 2018, Vickers accepted over $3,400 in bribe payments from the towing company. In addition, Kennedy accepted bribes amounting to $14,950 during the course of the conspiracy.
Vickers and Kennedy were charged as part of the government’s investigation known as “Operation Northern Hook.” Northern Hook is an investigation of corruption within the government and the Police Department of the City of Detroit relating to the towing industry and other matters. Thus far, six defendants have been charged in the probe.
United States Attorney Ison said, “Any police officer who chooses the path of corruption should understand that we will not tolerate unethical conduct from our public officials at any level. We commend Detroit Chief of Police James White and the Detroit Police Department for their cooperation assistance in this investigation.”
“Police officers take an oath to protect and serve their communities. Today, Daniel Vickers is being held responsible for violating that oath by using his official position to benefit himself personally. His actions were not in keeping with the integrity and professionalism exhibited by the Detroit Police Department every day,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI appreciates the partnership and cooperation of Police Chief James White as we continue to address public corruption in the City of Detroit."
“This former officer’s actions are completely unacceptable for anyone who is sworn to protect and serve our city as a Detroit Police officer,” said Detroit Police Chief James E. White. “We appreciate U.S. Attorney Ison’s work to hold those engaging in corruption accountable and will continue to collaborate with her office in any investigation of alleged wrongdoing by our officers. It is a top priority of my administration to guarantee that Detroiters can depend on our officers to act ethically.”
The case was investigated by the Detroit Area Public Corruption Task Force, which is led by the Federal Bureau of Investigation, with assistance from the Detroit Police Department, Michigan Attorney General's Office, Michigan State Police, Customs & Border Protection, and the U.S. Department of Homeland Security. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.
Michigan Man Arrested and Charged for Illegally Possessing Firearms While Making Threats to Kill Government OfficialsRead the Press Release
DETROIT – A Michigan man was arrested and charged in a criminal complaint with illegally possessing firearms after having been committed to a mental institution and while being an unlawful user of a controlled substance, announced United States Attorney Dawn N. Ison. The man came to the attention of the FBI after he made numerous threats over YouTube to kill FBI agents, members of the LGBTQ community, President Biden, and Governor Whitmer.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
According to the criminal complaint, Randall Robert Berka II, 30, of Sebewaing, Michigan, was illegally in possession of four firearms, three long guns and a pistol, after he had been committed to a mental institution and while he was a daily user of marijuana. Berka also was in possession of ammunition and body armor. The firearms were previously purchased for Berka by a relative who now feared that his mental health treatment was not working and was scared of Berka. The relative cooperated with FBI agents in securing the complaint.
The complaint further provides that Berka came to the attention of the FBI after Google reported to the agency that Berka was posting various threats on YouTube. Among other statements, Berka posted the following: “im going to kill these democrats biden deserves to die,” “im gonna kill lgbt freaks,” “you could be like me and get guns and threaten to kill politicians. Im more than willing tot kill whitmer and I do live in Michigan,” “Ill assault her . . . with my bullets,” and “i buy guns though and plot to kill people.”
The FBI arrested Berka at his residence in Sebewaing on Thursday, March 9, 2023. He will make his initial appearance in U.S. District Court today in the Bay City, Michigan courthouse. The U.S. Attorney’s Office will be asking the Court to hold Berka in pretrial detention because of his danger to the community and the risk that he will flee.
“We will take immediate action when we learn of individuals illegally possessing firearms and threatening to harm or kill others,” said U.S. Attorney Ison. “I applaud Google’s vigilance in this matter, and we hope members of the community will, likewise, pay attention and report such conduct to law enforcement.”
“This defendant’s actions were very alarming,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “When free speech crosses a line and becomes a threat of violence against another – aggravated by the illegal possession of firearms – the full investigative resources of the FBI will be brought to bear. As always, we encourage the public to be vigilant and report concerning behavior to the FBI and local law enforcement.”
Based on the charges in the complaint, Berka faces up to 15 years in prison if convicted.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by special agents of the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Anthony Vance.
Michigan Resident Indicted for Hate Crime of Threatening to Kill Jewish Government OfficialsRead the Press Release
DETROIT – A Tipton, Michigan resident was indicted by a grand jury today for using Twitter to threaten to kill Jewish government officials in Michigan, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
According to the indictment, on February 17, 2023, Jack Eugene Carpenter, III, 41, of Tipton, Michigan, using Twitter while located in Texas, made threats against Jewish government officials in Michigan. Carpenter’s post read, in part: “I’m heading back to Michigan now threatening to carry out the punishment of death to anyone that is jewish in the Michigan govt if they don’t leave, or confess.”
The indictment also alleges that the Grand Jury found that Carpenter intentionally selected Jewish members of the Michigan government as the objects of his threat because of the actual and perceived religion of those individuals.
Carpenter is currently being held in detention pending trial in this case.
“Hate and bias-related crimes poison our communities and make people afraid simply because of who they are or what they believe,” said U.S. Attorney Ison. “We will not tolerate such actions, and we will prosecute those who engage in them to the fullest extent of the law.”
“Investigating crimes based on religious bias is one of the FBI’s highest priorities because of the devastating impact they have on individuals and communities,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The victims in this case were specifically targeted because of their religion. The FBI is committed to working with our partners to detect and prevent violent incidents motivated by bias or hate. We also urge the public to report any suspected hate crimes to the FBI and local law enforcement.”
Based on the charges in the indictment, Carpenter faces up to 5 years in prison if convicted. Carpenter is subject to aa Hate Crime Motivation penalty enhancement under the United States Sentencing Guidelines.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by special agents of the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Hank Moon and Frances Carlson.
Detroit Gang Member Sent to Prison for Two Murders as Part of Racketeering ConspiracyRead the Press Release
DETROIT – A former Detroit resident was sentenced to 25 years in prison for murdering a rival gang member and an innocent 13-year-old bystander as part of a racketeering conspiracy, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Special Agent in Charge James A. Tarasca, Federal Bureau of Investigation, Detroit Division. Carlo Wilson, aka “Los,” age 29, received the sentence from the United States District Judge Mark A. Goldsmith.
At his guilty plea, Wilson admitted to being a member of the “6 Mile Chedda Grove” gang, which is a street gang that operated on the eastside of Detroit. 6 Mile Chedda Grove was a violent organization responsible for murders, assaults, robberies, and narcotics trafficking in the Detroit metropolitan area and in other states. The gang used violence to retaliate against rivals and to advance members’ positions within the gang.
As a part of his plea, Wilson admitted to participating in the 2015 murder of a rival gang member and an innocent bystander. According to plea documents, Wilson was with another gang member, Edwin Mills, when they saw the rival in a car outside of a market on the eastside of Detroit. Wilson and Mills killed the rival gang member and an innocent bystander when they fired multiple shots at the vehicle. Wilson and Mills also seriously injured two children who had been sitting on the hood of the car driven by the rival gang member. Mills also pled guilty and is currently awaiting sentencing in the case.
“Today’s sentence is a stark reminder of how gun violence devastates our community and is robbing innocent children of their future. It also serves as a warning to those who use guns to commit violence: I will use every resource of the federal government to seek justice for all of the people in this district,” U.S. Attorney Ison said.
“We are extremely proud of the outstanding work done by our Violent Gang Task Force, which is committed to countering violent crime, illegal drugs, and organized criminal activity in our communities by investigating gang members like Mr. Wilson, ”said James A. Tarasca, Special Agent in Charge of the FBI's Detroit Field Office. "The continued success and impact of this Task Force is persuasive evidence of how interagency collaboration results in tangible public safety benefits to the citizens who live in the Detroit metropolitan area."
The case was investigated by special agents of the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Robert Moran and Andrew R. Picek.
Southfield Resident Sentenced to 7 Years for Role in Illegally Distributing over 90,000 Opioid Doses at A Medical ClinicRead the Press Release
DETROIT – A Southfield, Michigan man was sentenced today to seven years in federal prison for his role in distributing over 90,000 doses of Oxycontin, Percocet, and other opioids out of an area medical clinic, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, Special Agent in Charge Orville Greene, Drug Enforcement Administration, Detroit Division, and Special Agent in Charge Mario Pinto of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Chicago Regional Office.
Lavar Carter, 45, was sentenced by United States District Judge Bernard A. Friedman. Carter initially became involved in the scheme as a patient recruiter where he used family members and people he encountered at soup kitchens to obtain information that was used to fill medically unnecessary opioid prescriptions. Carter eventually became employed at New Vision Rehab Center where he provided physicians with lists of patient names and identification that he knew were used to issue and fill medically unnecessary prescriptions. Carter and others exchanged the prescriptions for cash. Carter participated in the conspiracy between May 2019 and June 2020.
According to court records, Carter’s conduct was made even worse because, while released on bond in this case, he was surveilled by law enforcement agents working at another pain clinic to assist in the illegal distribution of more opioids.
U.S. Attorney Ison stated, “The devastation created by the opioid crisis harms our entire country. My office will zealously pursue medical providers, clinic staff, and others who inflict harm upon our community through illicit distribution of these powerful drugs.”
“The illegal distribution of opioids continues to have devastating effects on our community,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The sentencing of Lavar Carter highlights how a partnership between the FBI, DEA, and HHS leads to the successful prosecution of individuals who seek to profit off the addiction of others.”
“Profiting from the suffering of vulnerable populations will not be tolerated. Mr. Carter’s scheme of illegally funneling prescription pills into communities and fueling overdose deaths in exchange for profits has come to an end. I want to thank our law enforcement partners who worked collectively on this investigation,” stated Special Agent in Charge Orville Greene, Drug Enforcement Administration, Detroit Division.
“Facilitating the unlawful administration of prescription opioids, and other controlled substances, places beneficiaries of our federal health care programs at risk,” said Mario M. Pinto, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General. “We will continue to work with our law enforcement partners to pursue those who defraud our federal health care programs and engage in other unlawful conduct that can bring harm on our nation’s beneficiaries.”
This case was prosecuted by Assistant United States Attorneys Regina R. McCullough and Philip A. Ross as part of the district’s efforts to address the nation’s opioid crisis. The Eastern District of Michigan is one of twelve districts included in the Attorney General’s Opioid Fraud Abuse and Detection initiative. The case was investigated by special agents of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the U.S. Department of Health and Human Services, Office of Inspector General.
Former Claims Examiner for Michigan Unemployment Agency Pleads Guilty in COVID-19 Fraud SchemeRead the Press Release
DETROIT – A former unemployment examiner for the Michigan Unemployment Insurance Agency (MUIA) pleaded guilty today to conspiring to steal federal unemployment insurance benefits during the Covid-19 pandemic, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Irene Lindow, Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General, and Acting Special Agent in Charge Charles Miller, Internal Revenue Service, Criminal Investigation Division in Detroit.
According to court documents, Semaje Reffigee, 26, of Detroit, began working as a contract unemployment insurance examiner with the MUIA in October 2020. In this position, she had electronic access to the MUIA claims database. Reffigee was able to use her credentials to access and approve specific fraudulent unemployment insurance claims submitted to the agency, including claims outside her assigned workflow.
Court documents indicate that shortly after she began her contract employment with MUIA, Reffigee entered into an agreement with various individuals to defraud the MUIA by obtaining unemployment benefits through the submission of false claims. Reffigee’s co-conspirators would electronically submit fraudulent claims to MUIA in the names of various individuals, some of whom would be victims of identity theft and some of whom were entirely fictitious people. These co-conspirators made false statements in the applications attesting to the eligibility of these purported claimants and would upload fictitious documentation to support those fraudulent claims. The co-conspirators would then communicate with Reffigee, either directly or through intermediaries, and identify the claims that they had submitted. Reffigee would then use her insider access to the MUIA system to approve the claims and release benefits. Most of the time, benefits would be electronically loaded onto Bank of America debit cards and mailed to addresses controlled by Reffigee’s co-conspirators. Reffigee was often paid a “kickback” for her services, typically receiving a few hundred dollars per claim. Reffigee herself also unlawfully received approximately $9,000 in unemployment insurance benefits during the course of her employment with MUIA.
U.S. Attorney Ison stated, “This case reflects our ongoing commitment to prosecute those who took advantage of the Covid-19 pandemic by stealing funds intended for those in need. We treat this kind of fraud especially seriously because corruption within these programs undermines trust and confidence in government programs generally.”
“Semaje Reffigee was a state contract employee who was trusted to handle sensitive employment information. She abused her position for personal gain by using her access to state data systems to approve fraudulent UI claims submitted by her co-conspirators. Many of the fraudulent claims used the personally identifiable information of identity theft victims. Protecting the integrity of the unemployment insurance program remains one of our highest priorities. We will continue to work with our law enforcement partners to safeguard unemployment benefits for those who need them and to bring to justice those who commit unemployment insurance fraud,” said Irene Lindow, Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.
“Semaje Reffigee was entrusted to work for the State of Michigan. She, along with her co-conspirators, devised a scheme to steal money that was intended to provide financial assistance to those in need during the COVID-19 pandemic,” said Charles Miller Acting Special Agent in Charge, IRS-Criminal Investigation Detroit Field Office. “IRS-CI is proud to work with our law enforcement partners as we continue the pursuit of criminals who steal from the American taxpayer.”
Reffigee pleaded guilty before U.S. District Judge Matthew F. Leitman. She is scheduled to be sentenced on July 13, 2023. She faces a maximum of twenty years in prison, and a fine of up to $250,000. Per the terms of her plea agreement, Reffigee will also be required to repay $313,497 in restitution to the State of Michigan.
The case is being prosecuted by Assistant U.S. Attorneys Ryan A. Particka and Sarah Youngblood.
This investigation is being conducted jointly by the U.S. Department of Labor Office of the Inspector General and the Internal Revenue Service Criminal Investigation, with assistance from the Michigan Unemployment Insurance Agency.
U.S. Attorney’s Office Resolves Disability Discrimination Investigation of Bark Bark Wag Dog RescueRead the Press Release
DETROIT –The United States Attorney’s Office for the Eastern District of Michigan resolved its investigation of Bark Bark Wag, a local dog rescue organization based in Livonia, Michigan. The complainant alleged that her adoption application was denied based on stereotypes concerning her use of a wheelchair, leaving her feeling “dehumanized.” The settlement agreement between the U.S. Attorney’s Office and Bark Bark Wag requires the dog rescue to fully comply with the non-discrimination requirements of the Americans with Disabilities Act of 1990 (ADA).
The ADA protects the rights of all individuals, regardless of disability, to fully and equally enjoy the benefits and services offered by places of public accommodation, which includes dog rescues. The settlement agreement emphasizes the organization’s commitment to ADA compliance going forward and requires Bark Bark Wag to adopt ADA policies to ensure that the adoption process does not improperly screen out or scrutinize individuals who have disabilities. Under the terms of the settlement, Bark Bark Wag must train its volunteers on ADA policies and practices and report any future complaints from individuals who have disabilities to the U.S. Attorney’s Office. Bark Bark Wag must also provide a copy of its non-discrimination policy to all current and future rescue organizations with which it is affiliated.
“All too often, discrimination comes in the form of implicit bias, stereotypes, or assumptions. Here, an individual was judged not by her actual ability to safely care for the pets she hoped to adopt, but by her perceived inability to do so,” U.S. Attorney Ison said. “My office will continue to enforce the civil rights of our all of our citizens, including those who have disabilities.”
The investigation was led by AUSA Michael El-Zein of the U.S. Attorney’s Office for the Eastern District of Michigan, a member of the Civil Rights Unit. The full and fair enforcement of the ADA is a priority of the U.S. Attorney’s Office for the Eastern District of Michigan. The Civil Rights Unit was established in 2010 with the mission of prioritizing federal civil rights enforcement. For more information on the Office’s civil rights efforts, including a copy of the agreement, please visit https://www.justice.gov/usao-edmi/programs/civil-rights.
Individuals who believe they have been subjected to discrimination or have experienced a civil rights violation can submit a complaint with the U.S. Attorney’s Office by email at [email protected] or by phone at (313) 226-9151. Complaints can also be submitted to the Civil Rights Division through its complaint portal.
Woman Pleads Guilty to Threatening Election OfficialRead the Press Release
A New Hampshire woman pleaded guilty today to sending multiple threatening communications to a Michigan election official in the wake of the 2020 election.
According to court documents, Katelyn Jones, 25, of Epping, made multiple threats in November 2020 to the chair of the Wayne County Board of Canvassers, which oversees elections in Wayne County, Michigan. First, on Nov. 18, 2020, Jones sent a series of text messages to the official’s personal cell phone containing threats to injure the official and the official’s minor child. Jones’s text messages to the official included graphic photographs of a bloody, deceased, nude, mutilated woman lying on the ground as well as a photograph of the official’s minor child. Second, also on Nov. 18, 2020, Jones made posts to an Instagram account associated with the official that also contained threats to injure the official and the official’s minor child. For example, Jones posted on the official’s Instagram account that the official’s minor child was “beautiful” and that it would “be a shame if something happened to her.”
Jones pleaded guilty to making interstate threats. She is scheduled to be sentenced on July 11 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Dawn N. Ison for the Eastern District of Michigan, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI Detroit Field Office investigated the case.
Assistant U.S. Attorney Diane N. Princ for the Eastern District of Michigan and Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section are prosecuting the case.
Michigan Resident Uses Twitter to Threaten to Kill Jewish Government OfficialsRead the Press Release
DETROIT – A Tipton, Michigan resident was charged in a criminal complaint with using Twitter to threaten to kill Jewish government officials in Michigan, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
According to the criminal complaint filed in the case, on February 17, 2023, Jack Eugene Carpenter, III, 41, of Tipton, Michigan, using Twitter while located in Texas, made threats against Jewish government officials in Michigan. One post read, in part: “I’m heading back to Michigan now threatening to carry out the punishment of death to anyone that is jewish in the Michigan govt if they don’t leave, or confess.” Carpenter continued his threats of violence in a second post, which read, in part: “I’ll be coming back to Michigan, still driving with expired plates. You may want to let everyone know, and Wayne County sheriff as well, any attempt to subdue me will be met with deadly force in self-defense.”
The complaint indicated that Carpenter had three 9 mm semi-automatic pistols registered to him, and that he was under investigation by the Michigan State Police for stealing a fourth pistol. According to the complaint, it is also believed that Carpenter also owned a shotgun and two hunting rifles in addition to the pistols.
Carpenter was originally arrested by federal agents in Texas where he appeared in federal court on February 21, 2023. After his hearing in Texas, Carpenter was transported in custody to Detroit, where he made his initial appearance yesterday in federal court. The United States has requested that Carpenter be detained pending trial. He is scheduled for a pretrial detention hearing on Friday, March 3, 2023.
“No one should be threatened or targeted with violence because of their religious beliefs,” said U.S. Attorney Ison. “Anyone who communicates a threat to kill or injure others can expect serious criminal consequences.” “This investigation was greatly aided by concerned citizens who timely came forward to law enforcement and thereby helped us keep our communities safe,” continued U.S. Attorney Ison. “Our community members are the first line of defense in cases like this: so please, if you hear or see something that has you concerned that someone may commit a violent act, please reach out to your local, state, or federal law enforcement agency and help us keep Michigan safe.”
“Threats such as this are intended to create fear, and this case clearly shows targeting someone based on religious beliefs will not be tolerated,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “Crimes motivated by bias will be investigated by the FBI in coordination with the Michigan State Police, and perpetrators held responsible for their actions.”
Based on the charges in the criminal complaint, Carpenter faces up to 5 years in prison if convicted.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being investigated by special agents of the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Hank Moon.
Detroit Man Pleads Guilty to Three Violent CarjackingsRead the Press Release
DETROIT – A Detroit man pleaded guilty today to committing two attempted carjackings and one completed carjacking— including one where he fired an assault rifle at a teenaged victim.
United States Attorney Dawn N. Ison announced the plea today and was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
According to court records, Gregory Horsley, 20, of Detroit, Michigan, committed the carjackings on May 14, 2021, in Beverly Hills, Michigan. During each offense, Horsley targeted strangers who were inside their vehicles near the intersection of Thirteen Mile Road and Evergreen. In the first carjacking, Horsley approached the 16-year-old victim as he was seated in his car. Horsley pulled out a loaded assault rifle and pointed it at the driver. As the teenager drove off, Horsley fired his weapon, striking the vehicle.
Horsley next approached a vehicle driven by a woman. Horsley brandished his firearm and ordered her out of the car. The victim fled the driver’s seat and Horsley entered her car. But he could not drive away because the victim had the key fob in her pocket.
Horsley exited that vehicle and approached a third driver. Horsley pointed his firearm at the male driver and ordered him out of the car. The driver complied. Horsley then took the keys and drove off in the car. The carjacked vehicle was found a few days later. Horsley was identified by surveillance video and taken into custody at his home in Detroit.
Horsley faces a mandatory minimum sentence of 7 years in prison with a maximum possible sentence of life in prison on the charge of brandishing a firearm while committing a carjacking. For the carjacking charges, Horsley faces a maximum of fifteen years in prison.
“Carjacking is one of the most serious violations of public safety, making people feel vulnerable in their own cars and neighborhoods,” stated U.S. Attorney Ison. “We will seek significant federal penalties against those who prey on motorists in our communities.”,”
"Armed carjacking poses an unacceptable danger to public safety and creates a climate of fear for residents in our community,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “This case was investigated by the FBI Oakland County Gang and Violent Crime Task Force and serves as an example of the collaboration between federal, state, and local law enforcement agencies, to bring violent criminals to justice. The FBI, along with the Beverly Hills Police, Southfield, and Detroit Police Departments, remains committed to rooting out those who victimize our neighborhoods with violence.”
Sentencing is set for July 13, 2023.
The case was investigated by the FBI Oakland County Gang and Violent Crime Task Force, the Beverly Hills Police Department, the Southfield Police Department, the Detroit Police Department, and handled by Assistant United States Attorneys Jeanine Brunson and Michael Taylor.
Repeat Sex Offender Convicted of Second Federal Child Pornography OffenseRead the Press Release
DETROIT – A federal jury today convicted the former resident of a Detroit residential reentry center of receiving child pornography, United States Attorney Dawn N. Ison announced today.
Joining Ison in the announcement was James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation. The trial, which began on Wednesday, February 22, 2023, was conducted before United States District Judge Terrence G. Berg.
According to the evidence presented at trial, in June 2009, United States District Judge Robert H. Cleland sentenced Matthew Mercer-Kinser, now 36, to serve 151 months in custody for transporting child pornography. In July 2019, the Bureau of Prisons designated Mercer-Kinser to serve the final months of this sentence in a Detroit residential reentry center (RRC). While at the RRC, Mercer-Kinser sent numerous sexually explicit text messages to a minor relative. A concerned adult learned of these communications and reported Mercer-Kinser to the FBI. Execution of a search warrant for Mercer-Kinser’s smartphone revealed several images of child pornography and numerous disturbing communications demonstrating Mercer-Kinser’s continued, prolific sexual interest in children. When Mercer-Kinser testified in his own defense during trial, he admitted his sexual fetish for children.
Mercer-Kinser faces a mandatory minimum sentence of 15 years in prison. A sentencing date has been set for June 29, 2023, at 9 am.
“Protecting children from dangerous predators is a top priority for our office,” U.S. Attorney Ison said. “The actions of a concerned adult were crucial in bringing the crime in this case to the attention of law enforcement, and parents and other relatives need to be vigilant in watching out for signs of abuse or the exploitation of our kids.”
“This defendant’s repeat sexual offenses make him an extreme danger to our youth. Today’s guilty verdict is a step closer to ensuring Mercer-Kinser no longer has access to children in any way,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The combined efforts of the member agencies in the FBI’s Southeast Michigan Trafficking and Exploitation Task Force continue to form a formidable barrier between predators and our children.”
The case was investigated by special agents of the FBI. The case is being prosecuted by Assistant United States Attorneys Erin Shaw and Maggie Smith.
Real Estate Investor Pleads Guilty to $3 Million Wire and Bankruptcy Fraud SchemeRead the Press Release
DETROIT- A real estate investor pleaded guilty yesterday to stealing over $3 million in a wire and bankruptcy fraud scheme, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge, Federal Bureau of Investigation, Detroit Division.
Sean Tissue, also known as “Sean Ryan,” age 37, of Social Circle, Georgia, and formerly of Rochester, Michigan, pleaded guilty to Wire Fraud and Bankruptcy Fraud before United States District Judge Mark A. Goldsmith. Tissue was the owner of numerous companies, including The Centureon Companies LLC, Greystone Home Builders LLC, Sycamore Homes LLC, Lenovo Homes LLC, NROL Holdings LLC, Phillip Ryan LLC, Boardwalk Heights B2R LLC, NROL Property and Investment LLC.
According to the information provided to the Court at the guilty plea hearing, Tissue engaged in a real estate investment fraud scheme from 2015 through 2021. During that period, Tissue made, or caused others to make, false and fraudulent representations to induce potential investors from Israel, India, South Africa, and other countries to invest in real estate in Michigan, Texas, and other locations. Tissue, either directly or through agents, provided false and fraudulent material information to investors to induce them to invest and send him money through interstate or international wire transactions. To further the scheme, Tissue caused various false documents to be provided to investors, including fake deeds, fake wiring instructions, fake bank statements, fake leases, and fake inspection reports. Tissue also provided a fake name to investors (“Sean Ryan”). Tissue operated the scheme in the Eastern District of Michigan, and fraudulently obtained over $3 million.
In November 2017 through May 9, 2019, Tissue also engaged in bankruptcy fraud scheme by fraudulently withholding recorded information pertaining to his assets and financial affairs from the Bankruptcy Trustee after filing for Chapter 7 bankruptcy. Tissue was initially arrested on a complaint charging him with wire fraud and has been in custody ever since.
Tissue faces statutory maximum penalties of 20 years in prison for wire fraud and 5 years in prison for bankruptcy fraud. Judge Goldsmith will ultimately determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Sean Tissue orchestrated an elaborate scheme to defraud individual investors. He tried to avoid repaying those investors by declaring bankruptcy, and his lies and deceits continued in the bankruptcy proceeding,” said U.S. Attorney Ison. “This guilty plea is an important step towards holding Mr. Tissue accountable for his actions and reflects my office’s commitment to prosecuting financial crime and protecting the integrity of the bankruptcy system.”
“This defendant defrauded his real estate clients and then attempted to escape the consequences by declaring bankruptcy. His actions not only harmed individual clients, but also impacted potential investments in the City of Detroit,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “The FBI will continue to work with the U.S. Attorney’s Office and Bankruptcy Trustee to ensure the public’s continued trust in the bankruptcy process and to hold accountable those who would use our bankruptcy courts as a means of committing fraud.”
The investigation of this case was conducted by the Federal Bureau of Investigation. Both the United States Attorney’s Office and the Federal Bureau of Investigation wish to acknowledge and thank the United States Trustee’s Office for its assistance. The case is being prosecuted by Assistant United States Attorney Craig A. Weier and Special Assistant United States Attorney Richard Roble.
Former Detroit Resident Sentenced to Prison for $27 Million Tax Fraud SchemeRead the Press Release
DETROIT – A former Detroit resident was sentenced to 4 ½ years in prison for a tax fraud scheme where she sought to cheat the Internal Revenue Service and the state treasuries of six states of over $27 million in fraudulent tax refunds, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Charles Miller, Acting Special Agent in Charge of the Detroit Field Office of IRS Criminal Investigations.
Sameerah Marrell, aka “Sameerah Anderson,” aka “Sameerah Pickett,” aka “Crème,” aka “Loren Boyd,” age 42, received the sentence from the Honorable Linda V. Parker, United States District Judge, in Detroit, Michigan. Judge Parker also ordered that the defendant serve three years on supervised release after her release from federal custody and pay the remaining restitution owed totaling $7,979,041.71. During the course of the scheme, Marrell had successfully stolen $8.5 million, and the amount owed in restitution has been reduced by money, cars, and jewelry seized by the federal government and the states from Marrell during the course of this investigation.
Marrell pleaded guilty on January 11, 2023 to Mail Fraud, Wire Fraud, and Committing an Offense While On Bond. According to court records, the scheme began in 2014 and continued through April 2022. During that time, Marrell and other accomplices defrauded the Internal Revenue Service and the State Treasury Departments of Minnesota, Georgia, Maryland, Arizona, Connecticut, and Colorado, by filing 122 false and fictitious Income Tax Returns for Estates and Trusts and numerous state income tax returns, seeking over $13,690,341 from the IRS and $14,730,365 from the six states, by claiming bogus “refunds,” to which neither she nor her accomplices were entitled.
These federal and state income tax returns contained various false and material assertions of fact, most notably that the IRS and state taxing agencies had withheld large amounts of income tax from the trusts purportedly filing the returns, and that those trusts were therefore entitled to large refunds. In truth, however, the IRS and the state taxing agencies had withheld nothing from these trusts, and Marrell and her accomplices were entitled to no refund of any kind. Before discovering the fraud, the IRS paid out over $5,539,049 and the state agencies paid out a total of $2,972,588.93, all based on Marrell’s spurious claims. Altogether, Marrell and her accomplices successfully caused the issuance of approximately $8,511,637.93 in fraudulent tax refunds.
Marrell committed some of these offenses after she was arrested on a criminal complaint charging her with, among other things, making false claims to the IRS based on some of the conduct described above. Thus, even while Marrell was on bond, she continued to execute her scheme to defraud.
“Ms. Marrell committed an astonishing amount of fraud against federal and state agencies. She also proved herself incorrigible, continuing her scams even after her initial arrest. We hope that today’s sentence will deter both Ms. Marrell and anyone else who seeks to steal public funds for private gain.”
"Today's sentencing again emphasizes that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our nation's tax system," said Charles Miller, Acting Special Agent in Charge of IRS Criminal Investigation, Detroit Field Office. "Honest taxpayers have been reassured today that no one is above the law, especially when the integrity of tax administration is at stake.”
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by AUSAs Craig Weier and Adriana Dydell of the United States Attorney’s Office.Eight Defendants Indicted in Michigan for Obstructing a Reproductive Health Services FacilityRead the Press Release
WASHINGTON – The Justice Department announced today an indictment charging eight people with federal civil rights offenses and violations of the Freedom of Access to Clinic Entrances (FACE) Act.
According to court documents, Calvin Zastrow, Chester Gallagher, Heather Idoni, Caroline Davis, Joel Curry, Justin Phillips, Eva Edl and Eva Zastrow are charged with engaging in a civil rights conspiracy and with violating the FACE Act in connection with an August 2020 blockade of a reproductive health care clinic in Sterling Heights, Michigan. In addition, Idoni and Edl were also charged with violating the FACE Act in connection with an April 2021 blockade of a reproductive health care clinic in Saginaw, Michigan.
The indictment returned by a federal grand jury alleges that on Aug. 27, 2020, all eight defendants engaged in a conspiracy to prevent the Sterling Heights clinic from providing, and patients there from receiving, reproductive health services. According to the indictment, Gallagher advertised the Sterling Heights clinic blockade on social media, and he and Curry livestreamed the incident. The defendants convened at a location near the Sterling Heights clinic, where an uncharged co-conspirator who recorded the incident announced that the defendants were “going over to stand in front of the door” and “interpose.”
The indictment also alleges that all eight defendants violated the FACE Act by using physical obstruction to intimidate and interfere with the Sterling Heights clinic’s employees and patients, because the clinic’s employees were providing, and the patients were seeking, reproductive health services.
The indictment further alleges that on April 16, 2021, Idoni and Edl again used physical obstruction to intimidate and interfere with patients and employees of the Saginaw clinic because the clinic’s employees were providing, and patients were seeking, reproductive health services.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Dawn N. Ison for the Eastern District of Michigan, Assistant Director Luis Queseda of the FBI’s Criminal Investigative Division and Special Agent in Charge Timothy Waters of the FBI Detroit Field Office made the announcement.
The FBI Detroit Field Office and Bay City Resident Agency investigated the case.
The Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Michigan are prosecuting the case.
Anyone who has information about incidents of violence, threats and obstruction that target a patient or provider of reproductive health services or damage and destruction of reproductive health care facilities, should report that information to the FBI at www.tips.fbi.gov. For more information about clinic violence, and the Department of Justice’s efforts to enforce FACE Act violations, please visit www.justice.gov/crt/national-task-force-violence-against-reproductive-health-care-providers.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Announces over $200 Million in Investments in State Crisis InterventionRead the Press Release
WASHINGTON – The Justice Department announced today 49 awards to states, territories, and the District of Columbia as part of the Byrne State Crisis Intervention Program. This investment of over $231 million will fund state crisis intervention court proceedings, including but not limited to, extreme risk protection order (ERPO) programs that work to keep guns out of the hands of those who pose a threat to themselves or others. This investment in community safety is authorized by the Bipartisan Safer Communities Act of 2022, historic legislation to address and reduce gun violence.
“The Justice Department is working relentlessly to protect communities from violent crime and the gun violence that often drives it, and the Byrne State Crisis Intervention Program is an important part of that effort,” said Attorney General Merrick B. Garland. “These awards will support the kinds of crisis intervention programs that we know save lives and help protect children, families, and communities across the country from senseless acts of gun violence.”
“The Department of Justice’s strategy to reduce violent crime and gun violence includes prioritizing support for successful, evidence-based programs,” said Deputy Attorney General Lisa O. Monaco. “The grants announced today invest in and highlight proven state and local violence prevention and intervention programs, that will make our communities safer.”
“The nearly $8 million dollar grant awarded to the Michigan State Police will help to address the factors that lead to gun violence and protect our communities from being victimized by gun crime, said U.S. Attorney Dawn N. Ison. “I am delighted to announce this award and remain committed to doing everything we can to reach our goal of preventing gun violence.”
These awards, administered by the Department’s Office of Justice Programs’ Bureau of Justice Assistance (BJA), provide funding to states for the creation and implementation of extreme risk protection order programs, state crisis intervention court proceedings, and related gun violence reduction initiatives. Extreme risk protection order programs empower family members, health care providers, school officials and law enforcement officers to petition a court to temporarily prevent a person from accessing firearms if they are found to be a danger to themselves or others. Funds can also support interventions like drug, mental health and veterans’ treatment courts, gun violence recovery courts, behavior health deflection and outpatient treatment centers.
“Protecting communities from gun crime is an urgent public safety challenge and a critical part of the Justice Department’s work to ensure that everyone in this country can live free from the fear of violence,” said Associate Attorney General Vanita Gupta. “The resources we are announcing today will give communities the tools they need to prevent firearm violence and deliver support to those who are at risk of committing or being victimized by gun crime.”
The Bipartisan Safer Communities Act also seeks to ensure that extreme risk protection order laws and programs are implemented in accordance with the Constitution and provide for adequate due process protections. Projects funded under this program will need to demonstrate that they have taken measures to safeguard the constitutional rights of an individual subject to a crisis intervention program or ERPO initiative. The Justice Department has long supported state efforts to increase the use of ERPOs and in 2021 the Department released model legislation to help states create their own extreme risk protection order systems and provide for intervention before warning signs turn into tragedy.
Signed into law by President Biden in June 2022, the Bipartisan Safer Communities Act is the most significant piece of federal gun safety legislation in almost three decades and comes as a response to recent mass shootings and to the far more common, but no less tragic, incidents of community gun violence. Including the Byrne State Crisis Intervention Program, the law allocates a total of $1.4 billion to OJP over five years to develop, implement, and sustain meaningful investments in safer communities.
“These awards will help meet two monumental public safety challenges — the alarming proliferation of gun violence in our country and the clear need for front-end interventions to slow the cycle of violence and victimization in our most underserved communities,” said BJA Director Karhlton F. Moore. “The Bureau of Justice Assistance is proud to make these resources available to states as a critical part of its mission to reduce and prevent crime and to promote a fair and effective criminal justice system.”
For a full list of awards, please visit: https://data.ojp.usdoj.gov/stories/s/O-BJA-2023-171458/b5xz-as5z/. These awards are the latest effort from the Department of Justice’s Office of Justice Programs to implement this historic legislation.
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Detroit Man Who Threatened to “Shoot up” the Detroit Job Corps Center Pleads Guilty to Making ThreatsRead the Press Release
DETROIT – A Detroit man who made phone calls threatening to kill students at the Detroit Job Corps Center pleaded guilty today to making threats in interstate commerce, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Acting Special Agent in Charge Craig Kailimai, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General (DOL-OIG).
Elroy Knott, 24, pleaded guilty to threatening the Detroit Job Corps Center before United States District Judge Denise Page Hood. The Detroit Job Corps Center (“DJCC”) is a United States Department of Labor program that provides job training to individuals between the ages of 16-24. Besides providing free tuition, the DJCC offers room and board to students, with the majority of students residing at the campus. The DJCC houses approximately 300 students.
On April 24, and 26, 2022, Knott made multiple telephone calls to the DJCC during which he threatened to “shoot up” the place and to kill residents. He also threatened to shoot one employee in the back of the head. Following the threats on April 26, 2022, the DJCC campus was locked down for forty-eight hours, and its activities were substantially disrupted. Knott was in a relationship with one of the students at the DJCC, and he had previously made threats and been in the possession of firearms.
Knott faces a maximum of five years in prison for making the threats.
“The defendant terrorized students and staff at the Detroit Job Corps Center,” U.S. Attorney Ison said. “We will not tolerate such conduct, and we will do everything in our power to protect schools from the threat of violence.”
“Threats to terrorize the safety of our community will never be acceptable,” said Acting Special Agent in Charge Craig Kailimai, “ATF will remain vigilant in our commitment to public safety, whether by threat or actions, we will collaborate with the U.S. Attorney’s office, our federal, state, and local partners to bring those responsible to justice.”
“Elroy Knott threatened to harm Job Corps students and staff. His conduct caused significant disruption to learning at the Detroit Job Corps. Ensuring that Job Corps students can learn in a safe environment is a high priority for the Department of Labor. The Office of Inspector General will work with the U.S. Attorney’s Office and our law enforcement partners to vigorously pursue those who threaten DOL students, employees, and contractors,” said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, DOL-OIG.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Department of Labor, Office of Inspector General, with the assistance of the Detroit Police Department. The case is being prosecuted by Assistant U.S. Attorney Rosemary Wummel Gardey.
The Detroit Land Bank Authority Pays $1.5 Million to Resolve False Claims Act Allegations Relating to Blight Elimination CostsRead the Press Release
DETROIT - The Detroit Land Bank Authority (“DLBA”), a public organization working on behalf of the City of Detroit and the Detroit Building Authority in the City’s redevelopment and demolition management efforts, has agreed to pay the United States $1,503,000 to resolve allegations relating to unsubstantiated backfill dirt costs invoiced by demolition contractors and paid by the DLBA from December 2016 through June 2022, in connection with the DLBA’s blight elimination program. The United States contends that the claims for payment violated the False Claims Act, 31 U.S.C. §§ 3729-3733.
Congress created the Troubled Asset Relief Program (“TARP”) in response to the financial crisis of 2008 to restore liquidity and stability to the financial systems of the United States. In 2010, the United States established the Hardest Hit Fund (“HHF”) using TARP funds to provide targeted aid in states hit hard by the economic and housing market downturn. Beginning in 2013, the City of Detroit received approximately $258 million from the HHF to help demolish blighted properties within the City of Detroit and assist neighborhoods with high vacancy rates and blighted residential properties. The DLBA allocated a portion of its HHF award for neighborhood improvement projects, which included acquiring properties, demolishing blighted properties, and providing ongoing property maintenance for neighborhood improvement projects.
“The False Claims Act is an important tool to deter and to hold accountable those who misuse public funds,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “The Hardest Hit Fund’s blight elimination program is important to the safety and rebuilding of Detroit’s neighborhoods, and our office will continue to be vigilant in ensuring that taxpayer funds are properly used for that purpose.”
“I would like to commend the outstanding work of SIGTARP staff and the Detroit US Attorney’s Office in this investigation. This settlement stems from SIGTARP’s review of the Hardest Hit Fund Blight Elimination Program in Detroit, and the approval of unsubstantiated costs for backfill dirt by the DLBA,” said Melissa Bruce, SIGTARP Principal Deputy Inspector General. “The requirement to substantiate material costs before reimbursing contractors is critical to ensuring that TARP funds are properly spent on costs that are both reasonable and necessary to achieve the goals of this program.”
This case was investigated by the Office of Special Inspector General for the Troubled Asset Relief Program (“SIGTARP”). SIGTARP was created as an independent law enforcement agency to investigate fraud, waste, and abuse related to the Emergency Economic Stabilization Act.
The matter was handled by Assistant United States Attorney John Spaccarotella from the U.S. Attorney’s Office for the Eastern District of Michigan.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Serial Fraudster Sentenced to Prison for Lead Role in $2.2 Million Unemployment Fraud SchemeRead the Press Release
DETROIT – A Detroit man was sentenced today to 8 years in federal prison on charges of conspiring to defraud multiple government agencies out of more than $2.2 million in Covid-19 pandemic assistance funds and also to defraud the United States Postal Service (USPS) of more than $200,000, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Irene Lindow, Special Agent in Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Andre Martin, Special Agent in Charge, U.S. Postal Service Office of Inspector General.
Chaz Duane Shields, 35, of Detroit, was sentenced this afternoon by United States District Judge Robert H. Cleland in the United States District Court in Port Huron. Judge Cleland also ordered Shields to pay over $2 million in restitution to the States of California, Michigan, Nevada, and Louisiana, the Small Business Administration, and the USPS.
According to court records, beginning as early as May 2020 and continuing through at least July 2021, Shields and his co-conspirators agreed to submit more than 240 fraudulent unemployment insurance claims to over 20 states, in order to fraudulently obtain more than $2.2 million in unemployment insurance benefits. Shields also successfully obtained a fraudulent $20,833 Paycheck Protection Program (PPP) loan.
Separately, Shields defrauded the U.S. Postal Service of over $200,000 through a scheme in which he conspired to submit more than 1,000 fraudulent Domestic Indemnity Insurance claims, in the names of more than 40 separate individuals to the USPS. Shields and others used USPS Self-Service Kiosks to mail a number of packages. For each of the packages, the conspirators subsequently filed a fraudulent Domestic Indemnity Insurance claim by attesting that the package contained an item of significant value. In reality, the packages typically contained empty plastic picture frames with little to no value. The USPS mailed a check for each successful claim, which Chaz and his co-conspirators cashed, knowing that they were not entitled to the postal indemnity insurance payments.
Shields has an extensive history of fraud and deceit, having accumulated six separate state fraud convictions – five in Michigan and one in Maryland – since 2016.
“We remain committed to working with our law enforcement partners to investigate and prosecute thefts from a multitude of federal programs, especially those aimed at pandemic relief. Individuals who steal money from the government should know that they will be held accountable. Today’s sentence sends a strong message that financial crime does not pay,” U.S. Attorney Ison said.
“Shields and his co-conspirators submitted fraudulent unemployment insurance claims that siphoned off more than $2 million intended to assist individuals who lost their jobs during the COVID-19 pandemic,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI remains committed to working with our law enforcement partners to identify fraudsters like this defendant and hold them fully accountable for their crimes."
"Chaz Shields and his co-conspirators submitted more than 240 fraudulent unemployment insurance claims to multiple state workforce agencies, resulting in the payment of more than $2.2 million in fraudulent benefits. Their scheme diverted money away from American workers in need of relief from the financial effects of unemployment. We will continue to work with our law enforcement partners to safeguard the unemployment insurance system from those who exploit these benefit programs,” said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
Co-conspirators Cortney Shaquan Shields, 31, and Daeshawn Tamar Posey, 27, both of Detroit were previously sentenced to 41 months and 63 months in prison, respectively, in connection with this case. Co-conspirator Brittany Levett Witherspoon, 26, of Warren has also pleaded guilty and will be sentenced on May 1, 2023.
This case was investigated by the U.S. Department of Labor, Office of the Inspector General, the Federal Bureau of Investigation, and the USPS Office of the Inspector General. The case is being prosecuted by Assistant United States Attorneys Ryan A. Particka, and Timothy J. Wyse, and Special Assistant United States Attorney Corinne M. Lambert.
Madison Heights Pharmacist Sentenced for Diverting over 25,000 Opioid PillsRead the Press Release
DETROIT - A Madison Heights pharmacist was sentenced today to 84 months in federal prison based on his convictions for conspiring to distribute over 25,000 opioid pills and for money laundering, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration, Detroit Division and Acting Special Agent in Charge Charles Miller, Internal Revenue Service, Criminal Investigations, Detroit Division.
Yousef Kosho, 44, was sentenced by United States District Court Judge Cleland. According to court records, Kosho operated Great Health Pharmacy, in Madison Heights, Michigan. He used the pharmacy to engage in a scheme and pattern of illegal conduct involving the unlawful distribution of prescription drugs. Specifically, Kosho distributed prescription drugs from the pharmacy illegally, outside the course of usual professional pharmacy practice and for no legitimate medical purpose.
Kosho would unlawfully dispense controlled substances by filling prescriptions for patient recruiters, including co-defendant Omar Madison, upon accepting cash payments. At times, these prescriptions would be dispensed in the names of patients who never frequented the pharmacy. Co-defendant patient recruiter Madison would simply provide prescriptions to Kosho for dispensing without ever bringing the patient to the pharmacy. At other times, Kosho would sell entire pharmacy stock bottles of controlled substances to co-defendant Madison, and others without any medical prescriptions.
Kosho pled guilty to unlawfully dispensing 25,253 dosage units of Schedule II controlled substances including Oxycodone HCl, Oxymorphone HCl, Oxycodone-Acetaminophen, Hydrocodone-Acetaminophen, and more than 200,000 milliliters of Schedule V controlled substance Promethazine with Codeine.
As part of the court’s sentence, Kohso was also ordered to forfeit approximately $1.2 million in cash that was seized by federal agents during the investigation. His co-defendant, Omar Madison, pleaded guilty to the drug trafficking conspiracy charge and was sentenced on February 7, 2023, to 72 months in federal prison.
“This pharmacist was spreading poison in our community instead of dispensing medicine and providing sound medical advice,” stated U.S. Attorney Ison. “My office will continue to investigate and prosecute medical professionals who abuse their licenses by selling drugs to satisfy their greed.”
“Irresponsible and criminal behavior by trusted medical professionals will absolutely not be tolerated. Mr. Kosho will now face the consequences of his unlawful acts. This case is a perfect example of what can be achieved when DEA and our law enforcement partners work collaboratively,” said DEA Special Agent in Charge Orville O. Greene.
“Our communities rely on our pharmacies to relieve suffering and not contribute to harmful addictions. Today’s sentence highlights the seriousness of Kohso’s conduct” said Charles Miller, Acting Special Agent in Charge Detroit Field Office, Internal Revenue Service - Criminal Investigation. “IRS-CI will remain vigilant in working with our law enforcement partners to identify and investigate those seeking to intensify opioid addiction in our society.”
This case was prosecuted by Assistant United States Attorneys Alison Furtaw and Regina McCullough, as part of the district’s efforts to address the nation’s opioid crisis. The Eastern District of Michigan is one of twelve districts included in the Attorney General’s Opioid Fraud Abuse and Detection initiative. The case was investigated by special agents of the Drug Enforcement Agency and the Internal Revenue Service Criminal Investigations.
U.S. Attorney’s Office Resolves ADA Complaint with WalMart, Inc.Read the Press Release
DETROIT – The United States Attorney’s Office for the Eastern District of Michigan settled a complaint regarding an allegation that a Walmart store located in Mt. Pleasant, Michigan failed to make reasonable modifications to its policies so that an individual with a mobility disorder had an equal opportunity to access the goods or services that Walmart offered for sale. The settlement agreement resolves the Office’s investigation, prompted by the complaint of an individual with quadriplegia that he was not allowed to purchase alcohol at the Mt. Pleasant Walmart because his aide who was assisting him with shopping was not over 21 years old.
Civil rights enforcement is a priority of my office, which includes ensuring that all public accommodations are fully available to all of our residents.” U.S. Attorney Dawn N. Ison said. “I commend Walmart for agreeing to take these steps to make its stores more accessible to everyone in the Eastern District of Michigan and across the United States.”
Walmart has fully cooperated with the investigation and has agreed to update its corporate ADA policies to clarify its ongoing responsibilities to make reasonable modifications provide live training on its updated ADA policies for store management and Front End Associates at the Mt. Pleasant Walmart store, assign training on its updated ADA policies for store management and front end associate across the United States, and pay damages to the complainant.
The investigation was led by Executive Assistant United States Attorney Luttrell Levingston. The full and fair enforcement of the ADA is a priority of the U.S. Attorney’s Office for the Eastern District of Michigan. The Civil Rights Unit of the U.S. Attorney’s Office for the Eastern District of Michigan was established in 2010 with the mission of prioritizing federal civil rights enforcement. For more information on the Office’s civil rights efforts, including a copy of the agreement, please visit https://www.justice.gov/usao-edmi/programs/civil-rights.
Individuals who believe they have been subjected to discrimination or experienced a civil rights violation can submit a complaint with the U.S. Attorney’s Office by email at [email protected] or by phone at (313) 226-9151. Complaints can also be submitted to the Civil Rights Division through its complaint portal.
Garden City Man Sentenced to 15 Years for Attempted Sexual Exploitation of ChildrenRead the Press Release
DETROIT – A Garden City, Michigan man was sentenced yesterday to 15 years in federal prison for attempted sexual exploitation of children based on his request to an undercover federal agent to create child pornography, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Collin Patrick Valenti, 25, was sentenced by United States District Judge Victoria A. Roberts. Valenti pleaded guilty to asking a person who he believed was a parent of a young child—but in reality was an undercover law enforcement officer—to create and send a video of the parent performing a sex act on that individual’s minor child.
In addition to the attempt offense that he pleaded guilty to committing, Valenti engaged in the hands-on abuse of a small child. He also pretended to be a teenage girl online to obtain sexually explicit photographs of a minor teenage boy. Valenti admitted that on approximately 50 other occasions he sought sexually explicit images of children from individuals he believed to be the parents of the children.
“This offender requested that another individual create a horrific image of sexual abuse. We can only be thankful that he was communicating with an undercover law enforcement officer and not another abuser so that he could not cause harm to another minor. This office will continue to work with law enforcement agencies as they proactively work to find and stop those who seek to exploit and abuse children.” U.S. Attorney Ison stated.
This case was investigated by the Northeast Michigan Trafficking and Exploitation Crimes Task Force of the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Christopher Rawsthorne.
“Clyde” in Bonnie & Clyde Duo Pleads Guilty to Armed Bank RobberyRead the Press Release
DETROIT – A Waterford man pleaded guilty yesterday in federal court in Detroit to bank robbery and weapons offenses, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Defendant David Johnson, 54, pleaded guilty before U.S. District Judge Stephen J. Murphy, III. According to court records, in June 2018, Johnson and an accomplice walked into the Dearborn Federal Savings Bank at 4111 Telegraph Road and announced a robbery. Johnson’s accomplice pointed a short-barreled shotgun at the tellers as Johnson demanded money. The two men were unable to access the teller area and left the bank empty-handed. The men fled the scene in a car driven by Johnson’s wife and co-defendant, who was waiting nearby. Johnson’s wife then took the two men to the Citizens Bank at 23455 Eureka Road in Taylor, where Johnson and his accomplice walked in with the shotgun and announced a robbery. More than $4,000 was stolen from the Taylor bank, but the money was immediately thrown from the getaway car’s window after red dye packs placed in the bags by tellers exploded while they were driving down Eureka Road. After her arrest, Johnson’s wife told authorities the robbery was exciting and compared herself and her spouse to “Bonnie and Clyde.”
Johnson faces a maximum penalty of 20 years in federal prison for the bank robbery offense and not less than 10 years’ imprisonment for utilizing a short-barreled shotgun during the robberies. The sentencing hearing is set for May 4, 2023.
“Armed bank robbery places the lives of bank employees and customers at risk. We will continue to remove violent actors who endanger public safety from our community,” said U.S. Attorney Dawn N. Ison.
“Violent criminals who use guns during bank robberies deprive employees of their right to feel safe and secure in their workplaces,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “Thank you to the Dearborn Heights and Taylor Police Departments for their collaborative efforts during this investigation. The FBI is committed to working with our law enforcement partners to bring violent offenders to justice and to make our communities safer places to live and work.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Investigation, Dearborn Heights Police Department, and Taylor Police Department. The case is being prosecuted by Assistant U.S. Attorneys Barbara Lanning and Tara Hindelang.
Commerce Township Resident Charged in COVID-19 Loan Fraud SchemeRead the Press Release
DETROIT - A Commerce Township resident was charged with wire fraud in a criminal complaint for his alleged role in a scheme to obtain $963,000 from pandemic loan programs for fictitious businesses, announced United States Attorney Dawn N. Ison.
Joining in the announcement was Angie M. Salazar, Special Agent in Charge of Homeland Security Investigations, Detroit Field Division.
Charged is Ryan Carruthers, 42, of Commerce Township, Michigan. According to the complaint, beginning in approximately April 2020 and continuing through April 2021, Carruthers applied for 14 loans in the names of various businesses from lenders participating in the Paycheck Protection Program (PPP). The PPP was a program overseen by the Small Business Administration (SBA) in which participating lenders provided loans to help businesses keep their workforces employed during the Covid-19 crisis. The SBA would forgive the loans if all employees were kept on the payroll for eight weeks, and the money from the loans was used for payroll, rent, mortgage interest, or utilities. PPP loans were funded by participating banks or lending institutions. Carruthers is also alleged to have applied for a 15th loan pursuant to the Economic Injury Disaster Loan program, a program in which the SBA provided direct loans to businesses adversely affected by the pandemic.
The complaint also alleges Carruthers’s businesses were fictitious, and the applications he submitted for these pandemic relief loans fraudulent. Carruthers claimed that his various businesses, with names like “Cobra Kai Karate” and “Pure Juice Bar & Café,” had between three and fifteen employees. The complaint states that there is no evidence that any of these businesses had actual employees. Many of the businesses were not even incorporated until after March 2020, which would have rendered them ineligible for PPP loans.
The complaint further alleges that Carruthers applied for approximately $963,000 across 15 loans under these programs. Thirteen of the loans were actually funded, resulting in disbursements of approximately $851,000 on those loans. Carruthers is alleged to have used loan proceeds to pay off the balance of the mortgage on his home (approximately $251,000) and to have purchased a Sea-Doo personal watercraft, among other things.
United States Attorney Ison stated, “Mr. Carruthers is charged with lying repeatedly to obtain loan funds intended to help businesses keep their doors open during the Covid-19 pandemic. My office is committed to prosecuting anyone who exploited our national crisis to enrich themselves, and today’s charges are a reflection of that commitment.”
“Our communities suffered during the pandemic, yet some sought to line their own pockets at the expense of the American taxpayer,” said Angie M. Salazar, HSI Detroit Special Agent in Charge. “Our agents will continue to investigate PPP fraud and help hold these offenders accountable to the American people.”
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Carruthers faces up to twenty years in prison on the wire fraud charge.
The case is being prosecuted by Assistant United States Attorney John K. Neal. The investigation is being conducted by Homeland Security Investigations.