Eastern District of Michigan
Press releases recorded for this federal judicial district.
Tax Return Preparer Sentenced in Fraud Scheme Involving over 160 VictimsRead the Press Release
BAY CITY - A Gladwin, Michigan man was sentenced yesterday to 46 months’ imprisonment for wire fraud and tax evasion, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Special Agent in Charge Sarah Kull, Internal Revenue Service, Criminal Investigation.
Sentence was Mark Alan Patterson, 53. Patterson was a tax return preparer in Beaverton, Michigan who pleaded guilty to wire fraud and tax evasion in connection with a scheme to steal the tax refunds of over 160 clients. Patterson admitted to stealing over $600,000 as part of his scheme.
“Mr. Patterson violated the trust of his clients. Rather than carry out his ethical responsibilities as a tax return preparer, this defendant stole money from his clients to enrich himself,” stated U.S. Attorney Ison. “Through the efforts of the IRS agents in the case and Assistant U.S. Attorney Jules DePorre, each and every victim in this case will receive as much restitution as possible.”
According to court documents, Patterson worked as a tax return preparer for Schuster Tax Service in Beaverton, Michigan. From 2015 until February 2020, Patterson stole various portions of clients’ tax refunds by directing portions of clients’ tax refunds into bank accounts that Patterson controlled. Patterson did not inform the clients that he was taking the money from their tax refunds and instead deceived them by giving them unfiled versions of returns showing that they had a smaller refund amount.
In late February of 2020, Jennifer Schuster Semer, owner of Schuster Tax Service, informed law enforcement officers that Patterson, her former employee, had engaged in a potential fraud scheme. Ms. Semer discovered client tax returns dating back to 2015 that had refunds electronically diverted, in part, to bank accounts under Patterson’s control. Ms. Semer immediately contacted the Beaverton Police Department who greatly assisted throughout the IRS investigation.
United States Attorney Dawn Ison, in announcing the sentence, praised Ms. Semer and Brad Davis, chief of the Beaverton Police Department for their cooperation.
Roscommon Man Was Sentenced to over 19 Years in Prison on Charges of Possessing, Receiving and Transporting Child PornographyRead the Press Release
BAY CITY – A Roscommon County man was sentenced yesterday to 235 months in federal prison on charges of possessing, receiving, and transporting child pornography, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by acting Special Agent in Charge James C.Harris, III, Homeland Security Investigations and Sheriff Ed Stern, Roscommon County Sheriff’s Department.
Sentenced was Scott Lantzy, 49. Lantzy was convicted by a federal jury in October, 2021, after a 4 day trial which was conducted before United States District Judge Thomas Ludington in Bay City. The jury deliberated approximately 45 minutes before returning the guilty verdicts.
According to evidence presented during the trial, Lantzy, is a serial sex offender with four prior CSC convictions, one conviction for accosting a minor, and a Sex Offender Registration and Notification Act (SORNA) related conviction spanning from 1998 until present. Lantzy came to the attention of law enforcement when he impersonated an EMT at a high school football game. During the game, Lantzy came onto the field to aid an injured player. He accompanied the teen to the hospital, where he made his way into the emergency room. He continued to attempt contact with the injured player the following day. A few months before the football game, Lantzy befriended another high school student who testified at the trial. This student testified that while housesitting for Lantzy, Lantzy called him and told him that he had left him a camera and condoms and that the student should send Lantzy pictures of what he and his friend were doing while house sitting. When Lantzy arrived home, the student testified that he saw pictures of child pornography on Lantzy’s personal cell phone. This led detectives from the Roscommon County Sheriff’s Department to execute a search warrant on Lantzy’s home.
Lantzy was convicted of two counts of possession/access with intent to view child pornography; one count of possession of child pornography; one count of transportation of child pornography; and one count of receipt of child pornography.
“Protecting children from dangerous child predators is one of my office’s top priorities,” said U.S. Attorney Ison. “I commend our law enforcement partners for their hard work and dedication to investigating and prosecuting crimes against children.”
“Our communities are safer when Lantzy and others like him are behind bars,” said HSI Detroit acting Special Agent in Charge James C. Harris III. “Lantzy’s repeated attempts to lure and exploit children are sickening and I’m proud of the special agents and our law enforcement partners who helped put him away.”
The case was investigated by the Roscommon County Sheriff’s Department and special agents of Homeland Security Investigations in Sault Ste. Marie and Detroit, with assistance from the Michigan State Police. The case is being prosecuted by Assistant United States Attorneys Tim Turkelson and Alison Furtaw.
St. Louis man shot during jewelry store robbery sentenced to over eight years in prisonRead the Press Release
ST. LOUIS – A St. Louis man who was shot while trying to rob a jewelry store in 2019 was sentenced by United States District Court Judge Audrey G. Fleissig Thursday to eight years and four months in prison.
Deven Strauther and at least two others tried to rob the Robinson Jewelry Company on Chippewa Street in St. Louis on May 25, 2019, Strauther admitted in his plea agreement.
Strauther and another man, who were both armed, approached the store and opened one door, but employees did not allow the pair through a second, electronically-controlled door.
Strauther kicked out the lower portion of the glass on the door to try and gain entry. Fearing for their safety, the store owner and an off-duty police officer working security fired at Strauther, who was hit twice in the abdomen. Strauther fired back as he ran away.
About 30 minutes later, Strauther arrived at St. Louis University Hospital, where he was treated by staff and questioned by police. He did not make any admissions about his involvement in the attempted robbery, but police later found the Infiniti sedan used by the robbers. Strauther’s blood was inside, and the car’s hard drive showed it was at Robinson’s on the date and time of the attempted robbery. Strauther then admitted his involvement in the crime to police.
Strauther, 31, pleaded guilty in January to one count of attempted interference with commerce with threats of violence.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jen Szczucinski prosecuted the case.
This case was 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Two Defendants Sentenced in Unemployment Fraud SchemeRead the Press Release
DETROIT - Two defendants were sentenced yesterday for their role in an unemployment insurance benefit fraud scheme, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Special Agent-in-Charge James A. Tarasca, Federal Bureau of Investigation; and Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Mitchacole Johnson, 45, of Shelby Township, received a sentence of 3 years in federal prison and Larry Witherspoon, 46, of Harper Woods received a sentence of 4 years in federal prison. Both pleaded guilty to charges of wire fraud and were sentenced by United States District Judge Gershwin Drain.
“These defendants exploited the current pandemic to defraud the State of Michigan and United States for their own personal gain. My office is committed to prosecuting any person who used the Covid-19 crisis to inflict more harm on the people of Michigan,” stated U.S. Attorney Dawn N. Ison.
"Both Defendants manipulated the unemployment insurance system and stole taxpayer dollars for their own personal benefit," said James A. Tarasca, Special Agent in Charge of the FBI's Detroit Division. "The FBI is proud to work with our law enforcement partners to protect our country's vital federal assistance programs intended for out of work Americans."
According to court records, Johnson and Witherspoon are responsible for filing at least 66 claims for fraudulent unemployment insurance benefits in at least 4 states, including Michigan. Their illegal activity caused actual losses of over $1.3 million and attempted losses of nearly $3.5 million. Johnson filed a number of claims in her own name, while Witherspoon filed multiple claims in the names of people who had names similar to his own, such as “Lawrence Witherspoon.” Both Johnson and Witherspoon filed their claims using other people’s Social Security Numbers and had the benefits deposited into a variety of bank accounts, some connected to pre-paid debit cards.
This case was prosecuted by Assistant United States Attorney Ryan A. Particka. The investigation was conducted jointly by agents from the Department of Labor Office of the Inspector General and the Federal Bureau of Investigation.
State Employee Charged in over $1 million Unemployment Fraud SchemeRead the Press Release
DETROIT – Three woman have been charged in a criminal complaint for their alleged role in a $1.6 million dollar unemployment insurance fraud scheme aimed at defrauding the State of Michigan and the U.S. Government of funds earmarked for unemployment assistance during the COVID19 pandemic, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, John R. Pias, Special Agent-in-Charge, Department of Homeland Security Office of Inspector General, and James A. Tarasca, Special Agent-in-Charge, Federal Bureau of Investigation.
Charged were Antonia Brown, age 47, of Detroit, Kiannia Mitchel, age 32 of Romulus, and Angela Johnson, age 47, of Detroit.
According to the criminal complaint, Antonia Brown was employed by the State of Michigan as an Unemployment Insurance Examiner assigned to the Benefit Payment Control Unit. Part of her duties included reviewing, approving and adjudicating various Pandemic Unemployment Assistance (PUA) and Unemployment Insurance Assistance (UIA) claims.
As stated in the complaint, starting in March 2020, Kiannia Mitchel and Angela Brown fraudulently filed and/or accessed over 123 PUA claims, resulting in the disbursement of approximately $1.6 million in federal funds earmarked for PUA and UIA benefit payments. The complaint alleges that Brown acted outside the scope of her authority by electronically accessing, altering, and approving approximately 101 of the fraudulent claims which were all associated with Johnson and Mitchell’s residences. Mitchel and Johnson are alleged to have received money from third parties to assist them with the claims and paid Brown for her assistance in processing the fraudulent claims.
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.
The investigation is being conducted jointly by the Department of Labor Office of Inspector General, Department of Homeland Security Office of Inspector General, and the Federal Bureau of Investigation Detroit Area Public Corruption Task Force.
Detroit Man Sentenced to 14 years’ Imprisonment on Fentanyl Distribution ChargesRead the Press Release
DETROIT – A Detroit resident was sentenced yesterday to 14 years in federal prison on charges of possession of fentanyl with the intent to distribute it in the Detroit area, announced United States Attorney Dawn N. Ison.
U.S. Attorney Ison was joined in the announcement by Rodney Hopkins, Inspector in Charge, United States Postal Inspection Service (USPIS) and Acting Special Agent in Charge Kent Kleinschmidt of the Drug Enforcement Administration (DEA).
Judge Robert H. Cleland sentenced Dewayne Javon Butler, 32, Detroit to fourteen years. Butler pleaded guilty to two counts of possession with intent to distribute fentanyl in December 2021.
According to court records, on July 27, 2020, and August 5, 2020, Butler flew to Las Vegas, Nevada to ship packages containing over 1 kilogram of fentanyl each to the Detroit area for further distribution. The packages were intercepted by postal inspectors, who along with special agents from the DEA, determined that Butler was responsible for shipping the illegal drugs to Detroit. USPIS and DEA provided information to the Court at sentencing that revealed 22 previous parcels had been shipped to addresses associated with Butler, between November 2019 and August 2020, and corresponded with Buter’s travel from Detroit to Las Vegas.
A kilogram of fentanyl, which sold for about $50,000 in 2020 could potentially produce 250,000 lethal doses. Michigan drug overdose deaths climbed to record levels in 2020 during the pandemic. In 2019, more than 51 percent of all drug overdose deaths were attributed to fentanyl, a synthetic opioid, and other synthetic opioids, according to the Centers for Disease Control and Prevention in Atlanta (CDC).
"Mr. Butler’s criminal conduct is an all-too-familiar example of someone who is willing, due to his own greed, to contribute to the destruction of communities, families and individuals dealing with the current effects or aftermath of drug addiction,” stated U.S. Attorney Ison. “This sentence demonstrates that our office stands ready to hold individuals accountable for the harms they inflict on the community. I commend the excellent work of these federal law enforcement agents in removing dangerous drugs from the streets that were destroying lives in Southeast Michigan.”
“Today’s sentencing reflects the ongoing work of the United States Postal Inspection Service and our law enforcement partners to disrupt drug trafficking in our communities and our dedication to ensuring justice is swiftly served upon those who seek to undermine the safety and security of the general public,” stated Rodney M. Hopkins, Inspector in Charge, U.S. Postal Inspection Service Detroit Division.
“The Drug Enforcement Administration is determined to bring individuals trafficking fentanyl in our neighborhoods to justice,” said Acting Special Agent in Charge Kleinschmidt. “We see the devastating impacts of fentanyl on a daily basis and tirelessly investigate those who seek to profit at the expense of public safety.”
This case was investigated by special agents from DEA and USPIS.
Federal Inmate Pleads Guilty to Role in Stealing more than $2.2 Million in Pandemic Assistance BenefitsRead the Press Release
DETROIT - A current Bureau of Prisons (BOP) inmate (and former Michigan resident) pleaded guilty today to conspiracy to commit wire fraud, in connection with a scheme to defraud multiple state workforce agencies and the Small Business Administration out of more than $2,200,000 in Covid-19 pandemic assistance, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent-in-Charge James A. Tarasca, Federal Bureau of Investigation, Andre Martin Special Agent-in-Charge, U.S. Postal Service Office of Inspector General, and Rita Saenz Director of the California Employment Development Department.
Cortney Daquan Shields, 33, entered his guilty plea this morning, before United States District Judge George Caram Steeh, III.
According to court records, beginning at least as early as May 2020 and continuing through at least July 2021, Shields and others known and unknown to the government agreed to commit wire fraud. Specifically, Shields and his co-conspirators, with the intent to defraud, submitted more than 240 fraudulent unemployment insurance claims to more than 20 states and territories, fraudulently obtaining more than $2,200,000 in benefits. Shields also successfully obtained a fraudulent $20,833.00 Paycheck Protection Program (PPP) loan. Shields participated in the scheme from within the confines of the Federal Correctional Complex in Allenwood, Pennsylvania, where he was serving sentence on an unrelated fraud case. Members of the conspiracy transferred portions of the fraud proceeds to Shields via wire into his Bureau of Prisons commissary account. As part of his plea, Shields agreed to the forfeiture of $26,794.11 seized from that account.
Charged in a related complaint are Daeshawn Tamar Posey, 25, of Detroit; Chaz Duane Shields, 33, of Detroit; and Brittany Levett Witherspoon, 25, of Warren.
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.
This is case is being prosecuted by Assistant United States Attorneys Ryan A. Particka, Timothy J. Wyse, and Special Assistant United States Attorney Corinne M. Lambert. The investigation is being conducted jointly by agents from the Department of Labor Office of the Inspector General, the Federal Bureau of Investigation, and the United States Postal Service Office of the Inspector General.
Farmington Hills Resident Sentenced in Pandemic Fraud and Credit Card SchemeRead the Press Release
DETROIT - Farmington Hills resident Andre Taylor Jr. was sentenced to 75 months in federal prison yesterday on charges of wire fraud and aggravated identity theft arising out of a pandemic fraud and credit card scheme, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Acting Special Agent in Charge Felicia George, US Postal Inspection Service, Andre Martin, Special Agent in Charge, U.S Postal Service Office of Inspector General, and Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Taylor Jr., 28, pleaded guilty in December 2021 to one count of wire fraud arising from a broad-based scheme to defraud the Unemployment Insurance Agencies of several states, along with numerous banks and retailers. He also pleaded guilty at that time to one count of aggravated identity theft, reflecting the fact that his scheme involved the misuse of the personal identifying information of individual victims.
United States Attorney Ison stated “This defendant indiscriminately stole from pandemic relief programs, from banks, and from the public. He took money from wherever it was available, and he did not care whom he harmed along the way. Mr. Taylor’s conviction and sentence is a reflection of my office’s commitment to aggressive prosecution of those who steal identities to defraud both public and private victims.”
According to Court documents, by approximately October 2019, Taylor Jr. had begun obtaining credit cards intended for other individuals and using them without authorization of the cardholders. Taylor had different methods for obtaining such cards, including paying bribes to letter carriers in exchange for credit cards and other access devices stolen from mail routes. After obtaining stolen credit cards, Taylor Jr. would use them to make purchases at various retailers. Often, he would use stolen credit cards to purchase prepaid gift cards in bulk from the retailers, which could then be used like cash and transferred with ease. Court documents state that Taylor Jr. engaged in this practice in Michigan and in other states over the course of his scheme.
Beginning in approximately March of 2020, Taylor Jr.’s scheme expanded to include obtaining pandemic-related unemployment insurance benefits to which he was not entitled. Once enhanced pandemic unemployment insurance benefits (PUA) became available, Taylor Jr.’s scheme evolved to seek to capture such benefits through a variety of mechanisms and practices. Taylor Jr. obtained personal identifying information and filed fraudulent unemployment insurance claims with a several state workforce agencies, including Michigan and Pennsylvania. In some cases, Taylor Jr. would direct that the PUA benefits be electronically loaded onto bank cards or into accounts that he controlled. In other instances, Taylor Jr. would have the state workforce agencies arrange to mail pre-loaded debit cards containing the PUA benefits to addresses to which he had access. Frequently, Taylor Jr. would have such cards sent to addresses along the routes of the letter carriers with whom he had financial relationships, so that his complicit letter carriers could intercept the unemployment insurance mailings and provide that material to him.
In addition to the 75 months of imprisonment, Taylor Jr. was ordered to pay $774,607 in restitution to his victims.
The case was prosecuted by Assistant United States Attorney John K. Neal. The investigation was conducted jointly by the Postal Inspection Service, the USPS Office of the Inspector General, and the Department of Labor Office of the Inspector General.
U.s. Postal Service Engineer Pleads Guilty to Taking Illegal Gratuities from Postal Service ContractorRead the Press Release
DETROIT – Thomas Berlucchi, a Facilities Engineer for the United States Postal Service (USPS), pleaded guilty today to accepting over $6,500 in illegal gratuities from a USPS contractor announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Kenneth Cleevely, Special Agent in Charge of the Contract Fraud Investigations Division, United States Postal Service, Office of Inspector General (OIG).
Thomas Berlucchi, 61 years old, of Troy, Michigan, stands convicted of accepting illegal gratuities from Michael Rymar, who was the owner of a Rochester Hills company, Horizons Materials & Management LLC, which was awarded contracts to repair USPS buildings in Michigan and New York. According to court records, from 2015 to 2018, Berlucchi and other USPS engineers awarded Rymar’s company over $5 million in contracts. As a USPS Facilities Engineer, Berlucchi had the power to award no-bid contracts to contractors like Rymar so long as the contract was worth less than $10,000. During the plea hearing, Berlucchi admitted that between 2013 and 2018, he had accepted over $6,500 in illegal gratuities from Rymar because Rymar sought to continue to receive USPS work from Berlucchi. Berlucchi had awarded hundreds of thousands of dollars in work to Rymar. Berlucchi admitted accepting free construction work on his cottage (including exterior stairs and a new roof), free hotel rooms, and donations by Rymar to Berlucchi’s preferred organization.
Separately, Rymar has been charged with and pleaded guilty to stealing government funds because he committed fraud in the USPS contracts which he had received. In that scheme, Rymar provided documentation to the USPS containing false and fraudulent statements, oftentimes dramatically and falsely overstating the amount he paid subcontractors to complete the repairs. Rymar also falsely inflated the amount he paid his own employees and the cost of materials on USPS jobs. Over the course of the three-plus year fraudulent scheme, Rymar stole over $1.2 million from USPS out of the $5 million in contracts he was awarded.
United States Attorney Ison stated, “Federal employees who corrupt the contracting process by accepting illegal gratuities from contractors will be caught and punished.”
“We are gratified to have contributed to this investigation and applaud the exceptional work by the United States Attorney’s Office for both protecting the contracting process and overall program costs,” said Kenneth Cleevely, Special Agent in Charge, USPS OIG. “Along with the Department of Justice, the USPS OIG will continue to aggressively investigate those who would engage in fraudulent activities designed to defraud the Postal Service.”
Upon conviction for a violation of Title 18, United States Code, Section 201(c)(1)(B), gratuity to a public official, Berlucchi faces a maximum sentence of two years in prison and a fine of up to $250,000.
Under the United States Sentencing Commission Guidelines, Berlucchi is facing a sentence of between 8 to 14 months in prison.
The investigation of this case was conducted by the of the United States Postal Service, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Steven Cares.
Dearborn Resident Sentenced in Investment Fraud SchemeRead the Press Release
DETROIT - Dearborn resident Ali Rameh Bazzi was sentenced to 33 months of imprisonment today on charges of wire fraud and money laundering arising out of an approximately $500,000 investment fraud scheme, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Special Agent in Charge James A. Tarasca of the Federal Bureau of Investigation and Sarah Kull, Special Agent in Charge of the Detroit Office of the Internal Revenue Service Office of Criminal Investigation.
Bazzi, 27, pleaded guilty in August 2021 to one count of wire fraud arising from a scheme to defraud approximately 30 individuals by using their investments to fund his personal lifestyle and expenses. Bazzi also pleaded guilty to one count of money laundering, the result of financial transactions he engaged in with the fraudulently obtained funds.
United States Attorney Ison stated “This defendant lived lavishly on funds that he stole from those who entrusted him with their investments. His lies and deceit were costly to his victims and to the community as a whole. Today’s sentence was wholly warranted and I hope it will deter anyone seeking to enrich themselves by defrauding innocent investors.”
According to Court documents, Ali Rameh Bazzi held himself out to the public as an investment manager who used a unique trading model to generate high rates of return for investors. Between March of 2018 and March of 2020, Bazzi, operating through a supposed investment management company that he formed, obtained approximately $540,000 from nearly thirty investors. Bazzi told these investors that he would be investing their funds in commodities and foreign exchange markets and would generate substantial profits for his clients. To corroborate those claims, he provided his investors with individualized account statements at regular intervals, which purported to show trading activity and the growth in the value of their investments.
In fact, according to court documents, Bazzi diverted the great bulk of the money he obtained to his own personal uses and expenses. The account statements were fictitious, as were Bazzi’s many other representations to his investors about how and where their funds would be invested. Because of Bazzi’s misrepresentations, most of his victims were left with no return on their investments.
Bazzi spent investor funds leasing exotic sports cars, acquiring jewelry, and funding the day-to-day living expenses of a comfortable lifestyle. Of the approximately $540,000 that Bazzi obtained over the course of the scheme, Bazzi returned approximately $99,000 to investors. The reminder of the funds – some $441,231 – Bazzi illegally converted to his own use.
In addition to the 33 months of imprisonment, Bazzi was ordered to pay $441,231 in restitution to his victims.
The case was prosecuted by Assistant United States Attorney John K. Neal. The investigation was conducted jointly by the FBI and the IRS-Criminal Investigations Division. The Commodity Futures Trading Commission provided valuable assistance.
Two Wayne County Employees Arrested and Charged with Embezzling over $1.7 Million in County FundsRead the Press Release
DETROIT - Two Wayne County Roads Division employees were charged with embezzling over $1.7 million in county funds in a federal criminal complaint, which was unsealed today, Wayne County Prosecutor Kym Worthy and United States Attorney Dawn N. Ison announced.
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, Wayne County Sheriff Raphael Washington, and Warren C. Evans, Wayne County Executive. Wayne County Executive Warren C. Evans and his administration have been assisting and cooperating with the ongoing investigation since they first learned of fraudulent activity within their organization.
Named in the criminal complaint were Kevin Gunn, 64, of West Bloomfield, and John L. Gibson, 54, of Detroit. Gunn manages the Bridge Unit of the Wayne County Roads Division and has been employed by Wayne County for 34 years. Gibson is a foreman within the Bridge Unit. Gibson has been employed by Wayne County for 20 years.
Gunn and Gibson are charged in the complaint with conspiring to commit and committing federal program theft, wire fraud, and money laundering. Wayne County receives over $20 million in federal funds each year to pay for road repair, construction, maintenance. Gibson and Gunn were arrested today by FBI agents, Wayne County Prosecutor’s Office Investigators, and Wayne County Sheriff’s Deputies.
According to the complaint, the Wayne County Sheriff’s Department began the investigation, and then solicited the assistance of the FBI to investigate the criminal actions of Gunn, Gibson, other employees of the Wayne County Roads Division, and vendors to Wayne County. At the beginning of the investigation, the Wayne County Prosecutor’s Office secured a search warrant which broke open the case and led to the uncovering of the embezzlement scheme. Investigators with the Wayne County Prosecutor’s Office have played an ongoing and important role in the investigation.
Gunn, Gibson, and others were engaged in a scheme to defraud Wayne County by using taxpayer dollars to make unauthorized purchases of generators and other power equipment from retailers in Southeast Michigan which they sold for personal profit.
As part of the scheme to defraud, between January 2019, and August 2021, Gunn solicited approved Wayne County vendors to purchase generators and other power equipment from local retailers on behalf of Wayne County. The vendors would then submit invoices for these items to Wayne County. In order to conceal the scheme to defraud, Gunn instructed the vendors to falsify the invoices they submitted to the Roads Division, and list items the vendors were authorized to sell to the county under their contracts, rather than the generators and power equipment they were unlawfully acquiring at Gunn’s request. Roads Division employees would then approve and pay each vendor’s invoice with taxpayer funds. After these fraudulent purchases were verified and approved by Roads Division employees, Gibson, and Gunn took possession of the equipment which was resold over the internet and social media for personal profit.
A review of invoices from Wayne County vendors revealed that between January 16, 2019, and August 3, 2021, Wayne County vendors purchased 596 generators, and a variety of other power equipment including lawnmowers, chainsaws, and backpack blowers. The purchase of these items was not authorized under any vendor contract with Wayne County nor were the items ever provided to or used by Wayne County. The total value of equipment purchased as part of the scheme was approximately $1.7 million in taxpayer funds.
Federal program theft carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000. Wire fraud carries a maximum sentence of up to 20 years’ imprisonment and a fine of up to $250,000. Money laundering carries a sentence of up to 20 years’ imprisonment and a fine of up to $500,000.
“The Wayne County Prosecutor’s Office has never and will never shy away from prosecuting corruption in any form, said Prosecutor Worthy. I am proud of the focus and dedication of all of the investigators, who have worked together with our Wayne County Prosecutor’s Detectives to expose the alleged theft and fraudulent conduct against the citizens of Wayne County. The support of U.S. Attorney Dawn N. Ison, CEO Evans, the Wayne County Sheriff’s Office, and the FBI resulted in the federal complaint against Gibson and Gunn.”
United States Attorney Dawn Ison said, “Today’s arrests reinforce our dedication to prosecuting corrupt public officials who elevate their own greed over the best interests of the public who rely on the safe administration and maintenance of public infrastructures like roads. We thank Wayne County Prosecutor Kym Worthy, and Wayne County Executive Warren C. Evans who have been instrumental in starting and moving this investigation forward.”
Wayne County Executive Warren Evans said: “I take public corruption very seriously which is why when we first learned of the fraudulent activities, my office immediately offered to cooperate and provide any needed assistance to the Wayne County Sheriff’s Office, Wayne County Prosecutor’s Office, Federal Bureau of Investigation (FBI), and the U.S. Attorney’s Office. It is unfortunate that a few individuals put their personal gain ahead of the work the county has done over the last 7 years to stabilize our fiscal outlook, continue improvements to our infrastructure and provide services to our residents throughout a global pandemic. These individuals have undoubtedly put a stain on the fabric of our system; however, they do not represent the hundreds of hardworking and dedicated Wayne County Employees who come to work every day to serve our residents with respect and integrity. I will continue to pursue every avenue to fully prosecute these employees and vendors.”
“The alleged actions of these individuals are nothing short of disgraceful,” said Sheriff Raphael Washington. “To brazenly steal from hardworking taxpayers and fraudulently line their own pockets while holding positions of public trust make these crimes all the more deplorable. Today’s charges are another example of our strong commitment to working together.”
“Today’s charges are an example of how government and law enforcement agencies work together to ensure public officials are using taxpayer money for its intended purpose — in this case the repair and maintenance of roads and bridges — and not for their personal benefit,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “I commend the Wayne County Prosecutor, Wayne County Executive, and the Wayne County Sheriff’s Office for their early work on this investigation and their continued cooperation.”
The investigation of this case was conducted by the Wayne County Prosecutor’s Office, the Wayne County Sheriff’s Department, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.
Detroit Man Sentenced to More Than 19 Years in Federal Prison for CarjackingRead the Press Release
DETROIT – Deloneo Breham, 32, of Detroit, MI, was sentenced in federal court for carjacking and discharge of a firearm during a crime of violence, United States Attorney Dawn N. Ison announced today. Breham was sentenced by United States District Judge Nancy Edmunds to 235 months in federal prison, followed by six years of supervised release. Breham has been in custody since his arrest in February 2021.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division.
“Carjackers create an unacceptable risk of physical harm or death and erode the overall sense of safety and security in our community,” stated US Attorney Ison. “We are committed to bringing the full weight of the justice system to bear on individuals who are making our neighborhoods unsafe and who prey upon our citizens.”
“People who were just living their lives — doing ordinary things each of us has done thousands of times — were terrorized because this defendant wanted a car. No one should have to live in fear of something like that,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “Breham’s sentence should be a warning to anyone who commits a carjacking that the FBI and our law enforcement partners will find you and we will hold you accountable.”
According to court records, during the early morning hours of February 22, 2021, Breham approached a man pumping gas into his truck at a gas station on Gratiot Avenue in Detroit. Breham—armed with a handgun—told the victim to give him the keys to the truck. When the victim refused, Breham shot him in the leg. While Breham tried to open the driver’s door, the victim—a lawful CPL holder—retrieved his own firearm and shot Breham. Breham fled the scene on foot. Detroit Police responded within seven minutes and found Breham hiding in a bush nearby.
Additional facts presented to the court established that six months before the February 2021 carjacking, Breham carjacked a woman at her home. On August 31, 2020, the victim arrived home with her minor children to find Breham inside her house, armed with a gun. Breham pointed his gun at the victim and demanded the keys to her car. When the woman hesitated, Breham told her “I don’t want to do this in front of your kids.” The victim gave Breham the keys to her car and he left the house. The victim’s car was recovered from the Suez motel on Eight mile the following day.
The case was investigated by special agents of the FBI and was prosecuted by Assistant United States Attorneys Barbara Lanning and Diane Princ.
Dearborn Doctor Pleads Guilty to Diverting Prescription PillsRead the Press Release
DETROIT - Dearborn physician Tete Oniango, 47, pleaded guilty yesterday to conspiracy to distribute controlled substances, and agreed to forfeit approximately $37,000 in cash seized from his office, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division and Special Agent in Charge Mario Pinto of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office.
According to court records, Dr. Oniango admitted to prescribing 12,500 dosage units of hydrocodone, a powerful, Schedule II controlled substance without regard to medical necessity. Oniango issued these prescription drugs outside the course of professional medical practice and without any legitimate medical need for the drugs.
U.S. Attorney Ison said, “Hydrocodone is extremely addictive and can lead to addiction and eventual heroin use. Michigan has seen a devastating number of opioid drug overdoses in the last five years. My office remains committed to pursuing medical providers who abuse their roles as caregivers and inflict harm upon our community.”
Special Agent in Charge Tarasca stated, “Physicians who provide prescription drugs without a legitimate medical purpose are contributing to the drug epidemic in our community. The message should be clear, the FBI and our law enforcement partners will continue to focus our efforts on any doctor or healthcare professional who prioritizes profit over patient health and safety.”
“Physicians, and other medical practitioners, who place profits ahead of their patients by prescribing powerful controlled substances outside of medical necessity, unnecessarily risk the safety of those who they are charged to care for,” said Mario M. Pinto, Special Agent in Charge of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to hold accountable those who needlessly prescribe controlled substances at the expense of the well-being of others.”
Sentencing is set for August 22, 2022.
This case was prosecuted by Assistant U.S. Attorney 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.
Michigan Man Charged with Hate Crimes for Attempting to Intimidate Protestors from Supporting Black Lives MatterRead the Press Release
FLINT – The Justice Department announced that Kenneth Pilon, 61, has been charged by information in federal district court with willfully intimidating and attempting to intimidate citizens from engaging in lawful speech and protests in support of Black Lives Matter.
According to the filed information, Pilon called nine Starbucks stores in Michigan and told the employees answering his calls to tell Starbucks employees wearing Black Lives Matter T-shirts that “the only good n***er is a dead n***er.” Pilon told one employee, “I’m gonna go out and lynch me a n***er.” Over the course of the next month, Pilon left four nooses in parking lots and a fifth noose inside of a 7-Eleven store. Pilon attached each noose to a handwritten note, reading: “An accessory to be worn with your ‘BLM’ t-shirt. Happy protesting!”
This case is being investigated by the FBI. Assistant U.S. Attorney Timothy Turkelson for the Eastern District of Michigan and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division are prosecuting the case.
The charges in the information are merely allegations and the defendant is presumed innocent unless proven guilty in a court of law.
Justice Department Observes National Crime Victims’ Rights Week with Events Throughout the CountryRead the Press Release
DETROIT, MI – In observance of National Crime Victims’ Rights Week, April 24-30, 2022, the United States Attorney’s Office for the Eastern District of Michigan, along with the Detroit Crime Victims’ Action Team, will be recognizing crime victims and those who have dedicated their lives to serve and assist victims of crime.
Each year in April, the Department of Justice and United States Attorney’s Offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys Offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 24-30, with the theme: Rights, access, equity, for all victims. This theme underscores the importance of helping crime survivors find their justice by enforcing victims’ rights, expanding access to services, and ensuring equity and inclusion for all.
This year’s honoree is Open Arms, part of Ascension Southeast Michigan Community Health. Open Arms is a crime victim service program that provides individual and family counseling, crime victim court advocacy, peer support groups, and legal support for victims of crime and domestic violence. Open Arms will be recognized for their tireless work to ensure that the needs of victims are met.
This year’s Crime Victims’ Rights Week event will be held on Tuesday, April 26, 2022, 1:00 p.m. at Lafayette Greens. This location is located on the corner of Shelby and W. Lafayette. Lillian Reyes, Drop-In Youth Director with the Ruth Ellis Center, will be the guest speaker and share her emotional story. All are welcome to attend this event.
United States Attorney Dawn N. Ison and Michigan Attorney General Dana Nessel are both scheduled to speak at the event and will be joined by local and federal law enforcement leaders. Bishop James Williams, Crime Stoppers of Michigan will moderate Tuesday’s event.
The United States Attorney’s Office for the Eastern District of Michigan is committed to assisting victims of crimes and protecting them from further harm,” stated U.S. Attorney Dawn N. Ison. “Our staff of professionals are dedicated to ensuring that victims’ rights are protected and that they have access to services in their time of need.”
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Eastern District of Michigan, like other federal, state and local law enforcement agencies, has a dedicated Victim Witness Unit that serves federal crime victims across the District's many counties. Our staff notify victims of significant case events through the Department of Justice's Victim (DOJ) Notification System (VNS). Such notice enables victims to participate in court proceedings and make their voices heard. In calendar year 2021, our staff made more than 68,000 notices to victims. In addition to notification, the Eastern District of Michigan's Victim Witness Unit provides essential services to victims, such as making referrals for counseling, securing temporary housing, assisting with access to victim compensation funds, and accompanying victims to court to provide support and guidance during the proceedings. These services provide tools victims need to reshape their futures.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office Victim Witness Program at [email protected].
Former State Unemployment Contractor and Co-Conspirator Indicted for Stealing Unemployment Insurance BenefitsRead the Press Release
DETROIT - A former contract employee with the State of Michigan Unemployment Insurance Agency, and one co-conspirator, were charged today in an indictment for their roles in a scheme to steal unemployment insurance benefits, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Special Agent-in-Charge Irene Lindow, Chicago Region, U.S. Department of Labor Office of Inspector General, FBI Special Agent in Charge James A. Tarasca and Julia Dale, Director of the Michigan Unemployment Insurance Agency.
Charged are Autumn Mims, 29, of Troy, Michigan and William Haynes, 25, of Detroit, Michigan.
The indictment charges Mims and Haynes with conspiring to commit wire fraud, six counts of wire fraud, and three counts of aggravated identity theft. Mims is also charged with illicitly possessing fifteen or more unauthorized access devices.
According to court records, Autumn Mims worked for the State of Michigan Unemployment Insurance Agency as an Unemployment Insurance Examiner. Her duties included reviewing, processing, and verifying the legitimacy of unemployment insurance claims.
It is alleged that shortly after Mims began working for the State of Michigan, she began using her insider access to fraudulently process claims in the names of third parties without their knowledge or authorization. It is also alleged that as part of the scheme, Mims and Haynes caused unauthorized bank accounts to be fraudulently opened in the names of third parties and caused unemployment insurance claim payments to be issued to those illegitimate accounts. It is also alleged in the indictment that Mims and Haynes took control of those unemployment insurance claim payments and used the funds for their own benefit.
During the execution of a search warrant at Mims’s residence, law enforcement officers located significant evidence of fraud, including personal identifying information of third parties and receipts relating to transactions made using proceeds of the fraud scheme.
Mims was previously charged in a criminal complaint for her alleged role in the scheme.
“Those who commit unemployment insurance fraud not only steal from honest taxpayers but they also make it more difficult for legitimate claimants to receive the assistance to which they are entitled,” stated United States Attorney Dawn N. Ison. “We will continue to work tirelessly to fight unemployment abuse and fraud.”
“An important part of the mission of the Office of Inspector General is to investigate fraud involving unemployment insurance programs. This is particularly true when an allegation involves misconduct by the very government employees and contractors charged with overseeing those programs. We will continue to work with our law enforcement partners and state workforce agencies to aggressively investigate unemployment insurance fraud,” said Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.
“These defendants conspired to use Mims’ official position to take money meant for people who were unemployed during the pandemic. That money was vital to many of our community members who were suffering pandemic-related economic challenges,” said Special Agent in Charge James A. Tarasca of the FBI’s Detroit Division. “The FBI will continue to work alongside our state and federal partners to investigate unemployment insurance fraud.”
“The unemployment insurance benefits system is built on trust that the residents of Michigan will receive the money they are entitled to when they lose their jobs through no fault of their own,” said Julia Dale, Director of the Michigan Unemployment Insurance Agency. “We will not tolerate an abuse of that trust. I am committed to our partnership with law enforcement as together we identify bad actors and bring them to justice.”
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being prosecuted by Assistant United States Attorney Andrew J. Yahkind. The investigation is being conducted jointly by the Department of Labor, Office of Inspector General, Federal Bureau of Investigation, and the Unemployment Insurance Agency.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former Claims Manager for Michigan Unemployment Insurance Agency Pleads Guilty in COVID-19 Fraud SchemeRead the Press Release
DETROIT - Jermaine Rose, a former lead claims examiner for the Michigan Unemployment Insurance Agency (MUIA), pleaded guilty yesterday to conspiracy to commit wire fraud arising out of his participation in a pandemic-related unemployment insurance fraud scheme, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago 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.
Jermaine Rose, 43, pleaded guilty to one count of conspiracy to commit wire fraud arising out of his participation in a wide-ranging fraud scheme designed to provide Rose’s co-conspirators with pandemic unemployment insurance benefits to which they were not entitled.
United States Attorney Ison stated “The theft of pandemic unemployment insurance benefits is always a serious crime. The fact that an employee of the Michigan Unemployment Insurance Agency facilitated this theft makes it all the more outlandish. The conduct here was a major breach of the public trust, and my office is committed to bringing all those who abuse the public trust by participating in Covid-19 fraud schemes to justice.”
“Jermaine Rose, while serving as a State of Michigan Unemployment Insurance Agency employee, violated his duty as an employee to allow the unauthorized payment of Pandemic Unemployment Assistance claims. During a time when so many deserving people suffered from pandemic-related economic challenges, Rose exploited his position to release payment on fraudulent unemployment insurance claims in exchange for illicit payments from his co-conspirators. We will continue to work with our law enforcement and state partners to investigate those who exploit the UI system, “ stated Special Agent-in-Charge Irene Lindow, Chicago Region, U.S. Department of Labor Office of Inspector General.
Special Agent in Charge Marengo stated, “We are thankful to the Department of Labor, Michigan Unemployment Insurance Agency and the US Attorney’s Office for partnering with us in the investigation and prosecution of this case. We will continue to work with our partners to protect our nation’s financial infrastructure against individuals who take advantage of their position.”
According to the plea agreement, Rose was working as a lead claims examiner for the MUIA in April 2020, and as such, had electronic access to the MUIA claims database. Rose could use his credentials to access and approve specific UI claims submitted to the agency.
The plea documents indicate that beginning in approximately April 2020, Rose entered into an agreement with various individuals to defraud the MUIA by obtaining UI benefits through the submission of false UI claims. Rose’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 would make various false statements in the applications attesting to the eligibility of these purported claimants and would often upload fictitious documentation to support those fraudulent claims. The co-conspirators would then communicate with Rose, either directly or through intermediaries, and identify the claims that they had submitted. Rose would then use his 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 Rose’s co-conspirators. Rose was often paid for his services, typically in amounts between $50 and $150 per claim he touched.
While some of the individuals who approached Rose had legitimate UI claims and worked with him solely to receive benefits on an accelerated schedule, many of the individuals with whom Rose conspired submitted fraudulent UI claims in bulk. In his plea agreement, Rose acknowledged that he was well aware that many of the claims that he authorized were fraudulent.
Sentencing is set for July 21, 2022, before United States District Judge Linda V. Parker.
The case is being prosecuted by Assistant United States Attorneys John K. Neal and Alyse Wu. The investigation is being conducted jointly by the Department of Labor-Office of Inspector General and the Secret Service, with assistance from the Michigan Unemployment Insurance Agency.
Ecorse Man Sentenced on Charges of Mail FraudRead the Press Release
DETROIT – An Ecorse resident was sentenced to 30 months in federal prison after having pleaded guilty to committing mail fraud by executing a scheme to defraud his employer, Hankyu Hanshin Express, Inc., announced United States Attorney Dawn N. Ison.
Joining in the announcement was Special Agent in Charge James A. Tarasca, Federal Bureau of Investigation, Detroit Division.
Receiving the sentence from U.S. District Judge Linda V. Parker was Phillip E. Garza, 53, of Ecorse, Michigan. Garza pleaded guilty before Judge Parker to one count of mail fraud in June 2020. His sentencing was delayed because of the pandemic.
According to court records, Garza was employed by Hankyu Hanshin Express (USA) Inc. (HHE), a transportation and logistics services company based in suburban Chicago. HHE had several branch offices, including one in Taylor, Michigan. Garza held the position of ocean export specialist and was responsible for arranging the shipment of sea going goods through third-party shippers.
Garza created a shell company, El Centro Express, that was made to appear to be a third-party shipper. From October 2011 through May 2019, Garza submitted 2,300 invoices to HHE on the letterhead of El Centro Express. As a result, HHE issued 389 checks to El Centro Express and mailed them to a post office box Garza opened in Taylor. Those checks totaled over $1.1 million. Garza used those funds to pay personal expenses. For example, he paid his credit card issuers about $80,000, made monthly car payments totaling about $55,000, and paid about $39,000 to phone companies and cable and Internet service providers. He also made payments on personal loans, paid medical expenses, and went out to restaurants.
The investigation of his case was conducted by the FBI. It was prosecuted by Assistant U.S. Attorney Stephen Hiyama.
Detroit Man Convicted of Fraud and Gun OffensesRead the Press Release
DETROIT – A Detroit man pleaded guilty to charges of being a felon in possession of a firearm, wire fraud, and aggravated identity theft, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Special Agent in Charge James A. Tarasca of the FBI’s Detroit Division.
Pleading guilty was Damon Long, 25. Long is scheduled to be sentenced on August 16, 2022 before United States District Judge Victoria Roberts.
According to court records, Long was a member of a violent street gang, the Glock Boyz. The Glock Boyz have perpetrated acts of violence against rival gangs and have been victims of such violence. In May 2021, the FBI executed a search warrant at Long’s residence in Detroit and seized two of Long’s loaded pistols. Agents also seized evidence that Long engaged in wire fraud by submitting false applications for federal Unemployment Insurance (UI) benefits. Long, who is a convicted felon, admitted illegally possessing the pistols during his plea hearing. Long also admitted that he fraudulently submitted UI claims in the names of more than 10 people and received more than $300,000 in proceeds from this fraud.
“This case is an example of how we will use every tool available to target violent offenders and remove them from our communities,” stated U.S. Attorney Ison.
“Damon Long defrauded the State of California of more than $300,000 by filing for unemployment insurance benefits in the names of dozens of identity theft victims. We will continue to work with our law enforcement partners and state workforce agencies to safeguard the integrity of unemployment insurance benefit programs," said Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Special agents from the FBI’s Violent Gang Taskforce and the Department of Labor investigated this case. The case is being prosecuted by Assistant United States Attorneys assigned to the United States Attorney’s Office’s Violent & Organized Crime Unit.
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.
Former Michigan Corrections Officer Charged with Drug DistributionRead the Press Release
FLINT– A former Michigan Department of Corrections officer was charged in a federal indictment with possession with intent to distribute methamphetamine; possession with intent to distribute cocaine; and possession with intent to distribute heroin, announced United States Attorney Dawn N. Ison.
Joining in the announcement was Acting Special Agent in Charge Kent Kleinschmidt, Drug Enforcement Administration, Detroit Division.
Charged was Brandon McGaffigan, 29, of Flint, Michigan. McGaffigan was employed as a corrections officer at Thumb Correctional Facility in Lapeer County Michigan.
According to the indictment, McGaffigan is alleged to have possessed with the intent to distribute over 50 grams of methamphetamine as well as cocaine and heroin on January 22, 2022 with the intent of delivering the drugs into the prison. The indictment was returned on April 6, 2022. McGaffigan surrendered to DEA investigators and was arraigned before United States Magistrate Judge Curtis Ivy, Jr., the following day where he was released on bond. A trial date is currently set for June 14, 2022, in Flint, Michigan.
“As a corrections officer, McGaffigan’s duties are to maintain safety and security within the facility,” stated U.S. Attorney Ison. “The allegations that he intended to smuggle drugs into the prison completely undermines his duties as a corrections officer and creates significant dangers within the walls of the prison.”
“Illicit drugs have no place in our society, but they can be especially problematic inside a correctional facility,” said Detroit Division Acting Special Agent in Charge Kent Kleinschmidt. “No matter your profession or background, DEA will investigate anyone who violates the nation’s drug laws.”
The Drug Enforcement Administration Flint Residence Office, in coordination with the Thumb Area Narcotics Unit, the Michigan Department of Corrections, and Michigan State Police investigated this case. The case is being prosecuted by Assistant United States Attorney Timothy Turkelson.
An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty.
Woman Sentenced to over 20 Years in Federal Prison for Second Degree Murder on the Isabella Indian ReservationRead the Press Release
BAY CITY - A 22-year-old resident of Blanchard, Michigan, was sentenced today to 250 months in federal prison after having pleaded guilty to murder in the second degree announced United States Attorney Dawn N. Ison.
Joining in the announcement was James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division.
Sentenced was Kaden Elizabeth Gilbert. The sentencing took place in Bay City, Michigan before the Honorable Thomas Ludington.
According to court records, in November of 2020, Gilbert went to the victim’s residence and intentionally stabbed her with a knife severing her femoral artery. The victim lost a significant amount of blood and died due to the stabbing. The crime occurred on the Isabella Reservation in Mt. Pleasant, Michigan. Gilbert is a non-Indian. The victim was Indian.
“My office extends its deepest condolences to the family of the victim in this case,” stated U.S. Attorney Ison. “It is our sincerest hope that this sentence brings a measure of justice to the victim’s family and friends.”
“The FBI is committed to serving and protecting members of the Native American community – especially when they are victimized on Tribal land,” said Special Agent in Charge James A. Tarasca of the FBI’s Detroit Field Office. “I would like to thank the Mount Pleasant Police Department and the Bureau of Indian Affairs for their partnership during this investigation.”
The case was investigated by the Mount Pleasant Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Roy Kranz and Assistant United States Attorney J. Michael Buckley.
Michigan Doctor to Pay $775,000 to Resolve False Claims Act AllegationsRead the Press Release
A gynecologic oncologist, Vinay K. Malviya M.D., has agreed to pay $775,000 to resolve claims he violated the False Claims Act by submitting or causing the submission of false claims for payment to federal health care programs related to alleged medically unnecessary surgical procedures that he performed.
The settlement announced today resolves allegations that, from Feb. 1, 2011, through June 30, 2017, Dr. Malviya knowingly submitted false claims for payment to federal health care programs related to (1) radical hysterectomies and modified radical hysterectomies that Dr. Malviya performed when only simple hysterectomies were medically necessary; (2) chemotherapy services that Dr. Malviya administered or ordered that were in excess of what was medically necessary; and (3) evaluation and management services by Dr. Malviya that were not performed or not rendered as represented. In August 2021, Ascension Michigan and related hospitals agreed to pay $2.8 million to resolve claims that they violated the False Claims Act by submitting or causing the submission of false claims for payment to federal health care programs related to alleged medically unnecessary procedures performed by Dr. Malviya.
“Every day, patients rely on their doctors’ medical judgment to determine what type of medical care is reasonable and necessary,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue doctors who knowingly abuse this trust and subject their patients to unnecessary treatments or procedures.”
“This settlement should put health care providers on notice that we will seek to hold those responsible who profit from providing services to patients that are more aggressive than medically necessary,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “This office will use all available resources to protect the integrity of our nation’s health care systems.”
As part of the settlement, Dr. Malviya agreed to be excluded from Medicare, Medicaid and all other federal health care programs for a period of three years. During that time, federal health care programs will not pay anyone for items or services, including administrative and management services, furnished, ordered or prescribed by Dr. Malviya in any capacity.
“The submission of false claims for medically unnecessary procedures improperly diverts funds needed to care for the most vulnerable while increasing the financial burden on taxpayers,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Along with our law enforcement partners, HHS-OIG will continue to investigate and hold accountable those who cause fraudulent claims to be submitted to federal health care programs.”
The civil settlement includes the resolution of claims brought by Pamela Satchwell, Dawn Kasdorf and Bethany Silva-Gomez under the qui tam or whistleblower provisions of the False Claims Act. Under these provisions, a private party can 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. Satchwell v. Ascension Health, No. 17-CV-12315 (E.D. Mich.). Relators will receive a combined payment in the amount $147,250.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from HHS-OIG and the U.S. Defense Health Agency, Office of Program Integrity.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was investigated by Trial Attorney Denise Barnes of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Carolyn Bell-Harbin of the U.S. Attorney’s Office for the Eastern District of Michigan.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Former University of Michigan Professor Sentenced on Charges of Child Exploitation of a MinorRead the Press Release
DETROIT – A former University of Michigan professor was sentenced today to 5 years in federal prison after having pleaded guilty in November 2021 to one count of transporting a minor girl across state lines with the intent to engage in sexual conduct, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Acting Special Agent in Charge James C. Harris, III, Homeland Security Investigations (HSI).
Sentenced was Stephen Shipps, 69, of Ann Arbor, Michigan. In sentencing Shipps, United States District Judge Denise Page Hood also ordered Shipps to pay restitution to his victim in the amount of $120,000.00.
According to court records, from 1989 to 2019, Shipps was employed by the University of Michigan School of Music, Theatre, and Dance as a violin professor. Shipps was also the director of the Strings Preparatory Program, which offered instruction to young musicians ranging from elementary school through high school-age. Shipps retired from the University of Michigan in February 2019. In addition, Shipps served on the faculties of Indiana University, the North Carolina School of the Arts, the University of Nebraska – Omaha, and the Banff Centre in Canada. He also taught students at summer music programs in the Czech Republic, Germany, and the United Kingdom.
According to court records, from February and March of 2002, as well as in June and July of 2002, Shipps knowingly transported a minor girl, who was under 18 years old, across state lines, and Shipps intended to engage in sexual activity with her.
“I want to commend the brave young women who, after many years, found the courage to come forward and expose the abuse they suffered at the hands of Shipps,” stated U.S. Attorney Ison. “I also want to thank the prosecutors and law enforcement officials who worked tirelessly to bring justice in this case.”
“It is my hope that today’s sentencing can bring some closure to Shipps’ victims and sends a powerful message to others in positions of trust that if you prey on the vulnerable you will be held accountable for your actions,” said HSI Detroit acting Special Agent in Charge James C. Harris III. “I am proud of the agents who worked tirelessly on this investigation to ensure that justice was served.”
This case was investigated by agents of HSI with the assistance of the University of Michigan Police Department. Assistant U.S. Attorney Sara Woodward prosecuted this case.
Two Sentenced for Conspiring with State Contractor in Multi-million Dollar Unemployment Fraud SchemeRead the Press Release
DETROIT - A couple from Detroit was sentenced today for their role in a multi-million dollar unemployment insurance fraud scheme aimed at defrauding the State of Michigan and the U.S. Government of funds earmarked for unemployment assistance during the COVID19 pandemic, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge John Marengo, US Secret Service, Acting Special Agent in Charge Felicia George, US Postal Inspection Service, Special Agent in Charge James A. Tarasca , Federal Bureau of Investigation, Special Agent in Charge Sarah Kull, Internal Revenue Service-Criminal Investigation and Juila Dale, Director of the Michigan Unemployment Insurance Agency.
Johnny Richardson, 27, was sentenced to 97 months in federal prison and Micahia Taylor, 28, was sentenced to 30 months in federal prison. In sentencing the defendants, United States District Judge Bernard A. Friedman also ordered Richardson and Taylor to pay restitution in the amount of $683,555.
According to court records, Richardson and Taylor conspired with Brandi Hawkins—a former contract employee for the State of Michigan Unemployment Insurance Agency, to fraudulently release government funds that were intended to support individuals who lost their jobs during the COVID-19 pandemic. Richardson and Taylor both pleaded guilty conspiracy to commit wire fraud and conspiracy to commit money laundering in 2021.
Richardson and Taylor, either themselves or through others, filed dozens of fraudulent unemployment claims in Michigan and across at least four other states. Some of the claims filed by Richardson and Taylor used their own personal identifying information. Other claims were filed using stolen identities. Richardson and Taylor then provided Hawkins information on these claims, and Hawkins subsequently used her insider access to fraudulently release payment. The conspiracy resulted in the fraudulent disbursement of at least $683,555.
Hawkins was sentenced in October 2021 to 58 months in federal prison and was ordered to pay restitution in the amount of $3,793, 186 which represented the amount of fraudulently disbursed funds for which Hawkins received as a result of her actions.
“The defendants in this case used the COVID-19 pandemic to line their pockets with government funds earmarked to help those in need,” stated U.S. Attorney Ison. “My office is committed to rooting out and holding responsible those who exploited this crisis for their own personal gain.”
“At a time when thousands of people across Michigan were out of work because of the pandemic, these defendants were stealing benefits that should have gone to those trying to sustain their families,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “We thank our state and federal partners for their efforts to investigate unemployment insurance fraud.”
“Today’s sentencings demonstrate the collaborate efforts of many federal and state agencies,” stated USSS Special Agent in Charge Marengo. “The USSS and our law enforcement partners will continue to protect our nation’s financial infrastructure against criminals who try to enrich themselves from COVID Relief disaster funds.”
“UIA investigators use the many tools at their disposal to identify the web of deceit that bad actors use to steal money that is intended for hard-working residents of Michigan who face difficult times through no fault of their own,” said Julia Dale, Director of the Michigan Unemployment Insurance Agency. “We won’t rest in our pursuit of criminals. We leverage our partnerships with local law enforcement, financial institutions, internet service providers, businesses and others to make sure bad actors face full justice for their breach of the public trust.”
This case was prosecuted by Assistant United States Attorney Timothy Wyse. The investigation was conducted jointly by the Department of Labor, Office of Inspector General, United States Secret Service, Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, the U.S. Postal Inspection Service and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity
Dearborn Man Sentenced to 15 years in Prison for Distribution of Child PornographyRead the Press Release
DETROIT - Sean McClanahan, 51, of Dearborn, Michigan, was sentenced today to 15 years in federal prison on charges of distributing child pornography, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by acting Special Agent in Charge James C. Harris, III, Department of Homeland Security.
According to court records, after McClanahan sent a link containing files of child pornography to an undercover officer, on July 1, 2018, he admitted to distributing child pornography on that day, and as part of his plea agreement, further admitted to involvement with more than 600 images of child pornography and images of infants and toddlers. This was McClanahan’s second conviction for a federal child pornography offense, and he engaged in this conduct while he was still on supervised release for his first offense.
“Each time an image of an abused child is distributed or viewed online it revictimizes that child. We will protect these children and hold individuals accountable each and every time they prey on our most vulnerable citizens,” stated U.S. Attorney Ison.
“HSI is committed to protecting the innocent and ensuring offenders like McClanahan are removed from our communities,” said HSI Detroit acting Special Agent in Charge James C. Harris III.
The case was investigated by the Department of Homeland Security and prosecuted by Assistant United States Attorneys Meghan Bean and Christopher Rawsthorne.
Former President and Employee of Auto Parts Manufacturing Company Sentenced for Conspiring to Defraud the United StatesRead the Press Release
DETROIT - The former president and a former employee of H/A Industries, Inc., located in Sterling Heights, Michigan, were sentenced today on charges they conspired to defraud the United States by failing to report income on their federal tax returns, United States Attorney Dawn N. Ison announced. They pleaded guilty to the charges in November 2021 before U.S. District Judge Stephen J. Murphy, III.
Ison was joined in the announcement by Sarah Kull, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division.
Sentenced by Judge Murphy were Gordon J. Pesola, 60, of Oakland Township, and Kenneth R. Sanborn, 78, of Grosse Pointe Park. Pesola received a sentence of 21 months in prison and a $10,000 fine and was ordered to pay restitution to the United States in the amount of $1,004,000. Sanborn received a sentence of one year of home confinement and a $10,000 fine and was ordered to pay restitution to the United States in the amount of $1,004,000, jointly and severally with Pesola.
According to court records, Pesola was the president of H/A Industries, Inc., a company that designed and assembled systems used to manufacture component parts, mostly for the automotive industry. Sanborn was an employee of H/A Industries. From 2009 through 2013, Pesola transferred H/A Industries funds to himself, Sanborn, and a third conspirator through the use of shell companies, most of which were established in the British Virgin Islands. By using the shell companies, the defendants were able to make the transfer of H/A Industries funds appear to be payments by H/A Industries to its suppliers and contractors when in fact they used the funds for their own personal benefit and the personal benefit of their families. Neither Pesola nor Sanborn reported that income on their federal income tax returns. The total income not reported to the IRS by the Pesola, Sanborn, and the third conspirator was approximately $3,375,000. The income tax loss to the government was approximately $1,004,000. The third conspirator passed away in 2015.
The investigation of this case was conducted by the Internal Revenue Service – Criminal Investigation, and it was prosecuted by Assistant U.S. Attorney Stephen Hiyama
Former President of Madison District Public Schools Board of Education Charged with Tax Evasion for Failing to Report over $500,000 in IncomeRead the Press Release
DETROIT - The former President of the Madison District Public Schools Board of Education has been charged in an indictment with tax evasion and failure to file tax returns in connection with the President’s failure to report over $500,000 in income from a school district contractor, U.S. Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Sarah Kull, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division, Josh Hauxhurst, Acting Special Agent in Charge of the Federal Bureau of Investigation, Michigan Division, and John Woolley, Special Agent in Charge of the Department of Education, Office of Inspector General.
Albert Morrison is charged with four counts of federal income tax evasion and four counts of failing to file federal tax returns. According to the indictment, Morrison was the elected President of the Madison District Public Schools Board of Education from 2012 through 2018. While he was President, Owner A was one of the owners of a building maintenance and reconstruction company (Company A) that was routinely awarded maintenance and construction projects in the Madison District Public Schools.
Owner A, who was a long-time friend of Morrison, wrote checks from Company A to Morrison’s solely owned company, Comfort Consulting, from 2014 through 2018. Morrison deposited the checks from his friend into his solely owned bank account. From May 2014 through December 2018, Owner A, through Company A, made at least $561,667 in payments to Morrison.
Morrison did not declare to the IRS Owner A’s payments to Comfort Consulting as income in 2014, 2015, 2016, 2017, or 2018. In a further effort to conceal the payments from Owner A, Morrison did not file a federal income tax return in 2015, 2016, 2017, and 2018. Morrison used the payments from Owner A and Company A for personal expenditures. By not declaring to the IRS the payments from Owner A as income, Morrison avoided paying approximately $118,200 in taxes.
An indictment is merely an accusation and is not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law. If convicted, Morrison faces a statutory maximum penalty of 5 years in prison for each count of tax evasion and 1 year in prison for each count of failure to file tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The investigation of this case was conducted by the Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, and the Department of Education. It is prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen and Karen Reynolds.
U.S. Attorney’s Office Settles Two ADA Complaints Involving Local Gymnastic FacilitiesRead the Press Release
Detroit, MI – The United States Attorney’s Office for the Eastern District of Michigan announced that it has reached settlements with two local gymnasiums: Gymnastic Training Center of Rochester, Inc., and Great Lakes Elite Gymnastics, Inc. (also known as the Great Lakes Kids Energy Zone). Both facilities offer youth gymnastics programs. The settlements resolve two separate allegations that the centers failed to provide appropriate sign language interpreters or other auxiliary aids to children who are deaf or hard of hearing, thereby excluding them from participation in their programs.
The Americans with Disabilities Act (ADA) requires that places of public accommodation, including gymnasiums and other places of exercise or recreation, provide appropriate auxiliary aids and services, such as sign language interpreters, free of charge to ensure effective communication with individuals who are deaf or hard of hearing.
“No one should be excluded from a place of public accommodation because of a disability, least of all children in our community,” said U.S. Attorney Dawn N. Ison. “We appreciate the cooperation of the Gymnastic Training Center and Great Lakes Elite Gymnastics to resolve these complaints and ensure that children who are deaf or hard of hearing can participate in their programs alongside their peers.”
Under the settlement agreements, each facility will adopt new policies and procedures to ensure that no one with a disability is excluded from participation in their programs. In addition, both organizations will ensure that staff is appropriately trained on ADA requirements; ensure that auxiliary aids and services, including sign language interpreters, are provided to children free of charge when necessary for effective communication; include postings within their facilities alerting customers to the availability of auxiliary aids and services; and establish an ADA liaison to ensure compliance with the agreements. Executive Assistant U.S. Attorney Luttrell Levingston investigated these complaints and developed the settlement agreements.
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. Enforcing the ADA is a top priority of the Civil Rights Unit of the U.S. Attorney’s Office for the Eastern District of Michigan. ADA complaints may be emailed to [email protected] or by contacting the U.S. Attorney’s Office’s Civil Rights Hotline at (313) 226-9151. For more information on the U.S. Attorney Office’s civil rights efforts, including copies of settlement agreements with Gymnastic Training Center of Rochester, Inc. and Great Lakes Elite Gymnastics, Inc., please visit https://www.justice.gov/usao-edmi/programs/civil-rights.
More information about the ADA is available at the Justice Department’s toll-free ADA Information line at (800) 514-0301 or (800) 514-0383 (TTY) and on the ADA website at www.ada.gov.
Former Bank Employee Sentenced on Charges related to Stealing Social Security Administration Benefits from Account of Deceased CustomerRead the Press Release
BAY CITY - A former JPMorgan Chase Bank branch manager was sentenced today to 34 months in federal prison on charges of theft of government funds and identity theft, stemming from his theft of Social Security Administration (SSA) benefits from the account of a deceased bank customer, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Gail S. Ennis, Special Agent in Charge, Chicago Region, Social Security Administration, Office of the Inspector General.
Jeffrey Piecka, 46, of Midland was sentenced this afternoon by United Stated District Judge Thomas L. Ludington in the United States District Court in Bay City.
According to court records, Piecka devised a scheme to steal $169,967.63 in government benefits from the bank account of a deceased individual. Piecka, a former branch manager with JPMorgan Chase Bank, identified the individual’s account in the course of his employment, noting that it had little activity. Suspecting that the account owner had passed away, Piecka manipulated the bank account to create online account access for himself, and he proceeded to withdraw significant sums of money from the account by various means, including by making online payments to credit card companies, a utility company, his apartment complex, and his car lender.
“The defendant was in a position to safeguard bank customers’ accounts, and he abused that trust. It is also important to remember that stealing from the government is stealing from the taxpayers that fund that government. The sentence today reflects the seriousness of this offense,” stated U.S. Attorney Dawn N. Ison.
“Mr. Piecka was in a position of trust; he abused it for his personal gain and stole over $169,000 in Social Security benefits. This sentence holds him accountable for his criminal actions,” said Gail S. Ennis, Inspector General for the Social Security Administration. “My office will continue to work with SSA to identify improper payments to deceased persons. I thank the U.S. Attorney’s Office for prosecuting this individual and protecting the integrity of SSA programs.”
Piecka was also ordered to repay $169,967.63 in restitution to the Social Security Administration.
This case was investigated by special agents of the Social Security Administration Office of the Inspector General and was prosecuted by Special Assistant U.S. Attorney Corinne M. Lambert, and Assistant United States Attorney Ryan A. Particka.
U.S. Attorney Dawn N. Ison Appointed to serve on Attorney General Merrick B. Garland Advisory CommitteeRead the Press Release
WASHINGTON – Attorney General Merrick B. Garland today announced the appointment of 12 U.S. Attorneys to serve on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). Created in 1973, the AGAC advises the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys and elevates the voices of U.S. Attorneys in Department policies. The first meeting of the AGAC will take place later this spring.
The appointees include U.S. Attorney Damian Williams for the Southern District of New York; U.S. Attorney Cindy K. Chung for the Western District of Pennsylvania; U.S. Attorney Darcie McElwee for the District of Maine; U.S. Attorney Trini Ross for the Western District of New York; U.S. Attorney Sandra Hairston for the Middle District of North Carolina; U.S. Attorney Brandon Brown for the Western District of Louisiana; U.S. Attorney Dawn N. Ison for the Eastern District of Michigan; U.S. Attorney Gregory Harris for the Central District of Illinois; U.S. Attorney Andrew Luger for the District of Minnesota; U.S. Attorney Gary Restaino for the District of Arizona; U.S. Attorney Cole Finegan for the District of Colorado; and U.S. Attorney Matthew Graves for the District of Columbia. An appointee from a district within the jurisdiction of the Eleventh Circuit of the U.S. Court of Appeals will be announced at a later date, once the Senate has confirmed nominees.
U.S. Attorney Damian Williams will serve as the Chair of the AGAC, and U.S. Attorney Cindy Chung will serve as the Vice Chair.
“These United States Attorneys will represent the views of dedicated federal prosecutors across the country, and provide advice and insight into essential matters facing the Department,” said Attorney General Garland. “I look forward to working alongside them in carrying out the Department’s core priorities of upholding the rule of law, keeping our country safe, and protecting civil rights.”
“I am honored to have been appointed by Attorney General Merrick B. Garland to serve on the Attorney General’s Advisory Committee, where I will be able to continue to support the Department of Justice’s priorities of upholding the rule of law, protecting civil rights, and keeping our country safe,” stated U. S. Attorney Dawn N. Ison. “I embrace and share in these priorities for my own beautiful, richly diverse district, the Eastern District of Michigan. My primary goal for this district is to ensure that its citizens not only feel protected and safe, but also valued. I am honored to have the opportunity to advance this mission along with my esteemed colleagues who have also been appointed to this very important Committee.”A brief bio on each appointee is below:
Damian Williams (Chair)
The Senate confirmed Damian Williams’ appointment as U.S. Attorney for the Southern District of New York in October 2021. Williams began his legal career as a law clerk to then-Judge Merrick Garland when he served in the U.S. Court of Appeals for the District of Columbia Circuit from 2007 to 2008. Williams then served as a law clerk for Justice John Paul Stevens of the U.S. Supreme Court from 2008 to 2009. From 2009 to 2012, he was a litigation associate at Paul, Weiss, Rifkind, Wharton & Garrison. From 2012 to 2021, he served as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the Southern District of New York. In the role, he served as a chief of the securities and commodities fraud task force from 2018 to 2021. He received his Bachelor of Arts in economics from Harvard University in 2002, a Master of Philosophy in international relations from Emmanuel College at the University of Cambridge in 2003, and a Juris Doctor from Yale Law School in 2007, where he was also an editor of the Yale Law Journal.
Cindy K. Chung (Vice Chair)
The Senate confirmed Cindy K. Chung’s appointment as U.S. Attorney for the Western District of Pennsylvania in November 2021. In 2002 and 2003, Chung served as a law clerk for Judge Myron H. Thompson in the Middle District of Alabama. She then joined the New York County District Attorney’s Office in 2003, serving as an assistant district attorney until 2007 and as investigation counsel in the Official Corruption Unit from 2007 to 2009. From 2009 to 2014, Chung served as a trial attorney in the U.S. Department of Justice Civil Rights Division. She later joined the U.S. Attorney’s Office for the Western District of Pennsylvania, serving as deputy chief of the major crimes division. From 2014 to 2021, she served as an Assistant U.S. Attorney. Chung earned a Bachelor of Arts from Yale University in 1997 and a Juris Doctor from Columbia Law School in 2002.
Darcie McElwee
The Senate confirmed Darcie McElwee’s appointment as U.S. Attorney for the District of Maine in October 2021. McElwee began her legal career as an assistant district attorney for the Penobscot and Piscataquis counties in Maine from 1998 to 2002. Between 2005 and 2008, McElwee was an adjunct professor of advanced trial advocacy at the University of Maine School of Law. From 2002 to 2021, she served as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the District of Maine. Since 2005, she has been the coordinator of Project Safe Neighborhoods. McElwee received her Bachelor of Arts from Bowdoin College in 1995 and her Juris Doctor from the University of Maine School of Law in 1998.
Trini Ross
The Senate confirmed Trini Ross’s appointment as U.S. Attorney for the Western District of New York in September 2021. Ross began her career as an appellate attorney for the New York Supreme Court. She was an associate at Hiscock & Barclay LLC before joining the Office of Professional Responsibility as assistant counsel. From 1995 to 2018, Ross served as an Assistant U.S. Attorney for the Western District of New York. She has also been an adjunct professor of law at Buffalo Law School. She has also served as director of the investigations for the National Science Foundation Office of Inspector General since 2018. Ross earned a Bachelor of Arts degree from the State University of New York at Fredonia in 1988, a Master of Arts from Rutgers University in 1990, and a Juris Doctor from the University at Buffalo Law School in 1992.Sandra Hairston
The Senate confirmed Sandra Hairston as U.S. Attorney for the Middle District of North Carolina in November 2021. Hairston previously served as an assistant district attorney in Columbus County, North Carolina, from 1987 to 1989 and as a special assistant district attorney in Guilford County, North Carolina from 1989 to 1990. From 1994 to 1996, she served as Chief of the Criminal Division of the U.S. Attorney’s Office for the Eastern District of North Carolina before returning to the Middle District of North Carolina in 1996. She joined the U.S. Attorney’s Office for the Middle District of North Carolina in 1990 as an Assistant U.S. Attorney. Hairston previously held the position of First Assistant U.S. Attorney for the Middle District of North Carolina from 2014 to 2021. From March 1, 2021, until her Senate confirmation, she served as the Acting U.S. Attorney for the Middle District of North Carolina. Hairston received her Bachelor of Arts from the University of North Carolina at Charlotte in 1981 and her Juris Doctor from North Carolina Central University School of Law in 1987.
Brandon Brown
The Senate confirmed Brandon Brown as U.S. Attorney for the Western District of Louisiana in December 2021. From 2007 to 2012, Brown served as an assistant prosecuting attorney in the Ouachita Parish District Attorney’s Office. He was also an associate at Hammonds, Sills, Adkins & Guice LLP in Baton Rouge, Louisiana. Since 2012, he has served as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the Western District of Louisiana. Brown earned a Bachelor of Arts in 2002 and a Master of Business Administration in 2004 from Louisiana Tech University, followed by a Juris Doctor in 2007 from the Southern University Law Center.Dawn N. Ison
The Senate confirmed Dawn N. Ison as U.S. Attorney for the Eastern District of Michigan in December 2021. In 1989 and 1990, Ison was a prehearing attorney for the Michigan Court of Appeals. From 1990 to 2002, she was an attorney in private practice where she focused on criminal matters as well as a range of civil matters. In 2002, Ison began serving as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the Eastern District of Michigan, where she served as chief of the Drug Enforcement Task Force Unit from 2010 to 2014. Ison earned a Bachelor of Arts from Spelman College and a Juris Doctor from the Wayne State University Law School.
Gregory Harris
The Senate confirmed Gregory Harris as U.S. Attorney for the Central District of Illinois in December 2021. Harris began his career as a lawyer for the Office of the State Appellate Defender in 1976 where he represented indigent criminal defendants on appeal. From 1979 to 1980, he served as legal counsel for the Illinois Governor’s Office of Manpower and Human Development and later as a staff attorney for the Illinois Department of Commerce and Community Development. From 1980 to 1988, he served as an Assistant U.S. Attorney in the U.S Attorney’s Office for the Central District of Illinois. From 1988 to 2001, he was a lawyer for Giffin, Winning, Cohen & Bodewes in Springfield, Illinois. He later rejoined the Central District of Illinois in 2001, where he served as chief of the Criminal Division and Assistant U.S. Attorney. Harris was born in Washington, D.C. He earned a Bachelor of Arts degree from Howard University in 1971 and a Juris Doctor from the University of Illinois Chicago School of Law in 1976.Andrew Luger
The Senate confirmed Andrew Luger as the U.S. Attorney for the District of Minnesota in March 2022. He previously served in that role during the Obama administration and briefly during the Trump administration from 2014 to 2017. Prior to his appointment, Luger was a partner in the Minneapolis office of Jones Day from 2017 – 2022. Luger has also served as an Assistant U.S. Attorney for the Eastern District of New York, from 1989 to 1992, and for the District of Minnesota from 1992 to 1995, where he prosecuted a wide variety of narcotics and violent crimes, as well as complex white collar frauds. In 1995, Luger joined the law firm of Greene Espel in Minneapolis, where he was a partner until 2014. Luger earned a Bachelor’s degree from Amherst College and a Juris Doctor from Georgetown University Law Center.
Gary Restaino
The Senate confirmed Gary Restaino as U.S. Attorney for the District of Arizona in November 2021. From 1991 to 1993, Restaino served in Paraguay with the Peace Corps. From 1996 to 1999, he provided legal services to seasonal farm workers as a lawyer with Community Legal Services. From 1999 to 2003, he served as a civil rights lawyer in the Arizona Attorney General's Office. He then served as a trial attorney in the Public Integrity Section of the U.S. Department of Justice’s Criminal Division. Restaino joined the U.S. Attorney's Office for the District of Arizona in 2003. He was nominated to serve as U.S. Attorney in October 2021. Restaino earned a Bachelor of Arts degree from Haverford College in 1990 and a Juris Doctor from the University of Virginia School of Law in 1996.Cole Finegan
The Senate confirmed Cole Finegan as U.S. Attorney for the District of Colorado in November 2021. From 1991 to 1993, Finegan served both as Chief Legal Counsel and Director of Policy and Initiatives for Colorado Governor Roy Romer. From 1993 to 2003, Finegan was a partner for Brownstein Hyatt Farber Schreck’s Denver office. Finegan joined Hogan Lovells (then Hogan & Hartson) in 2007 as a partner. Finegan acted as an adviser to Governor Hickenlooper and U.S. Senator Michael Bennet. Finegan attended the University of Notre Dame from 1974 to 1978, earning a degree in English. Finegan earned a Juris Doctor from Georgetown University Law Center in 1986.
Matthew Graves
The Senate confirmed Matthew Graves as U.S. Attorney for the District of Columbia in October 2021. After graduating law school, Graves began his legal career as a law clerk for Judge Richard W. Roberts of the U.S. District Court for the District of Columbia. From 2002 to 2007, he was an associate at WilmerHale. From 2007 to 2016, Graves worked as an Assistant U.S. Attorney in the District of Columbia, where he served in the office’s fraud and public corruption section, ultimately serving as the acting chief of the section. Since 2016, he has been a partner at DLA Piper. Graves earned a Bachelor of Arts degree from Washington and Lee University in 1998 and a Juris Doctor from Yale Law School in 2001.Detroit Man Sentenced on Charges related to Theft of $1.6M in Unemployment Insurance Benefits from Nine StatesRead the Press Release
A Detroit man was sentenced today to 39 months in federal prison on charges of wire fraud and identity theft, in connection with a scheme to defraud and obtain more than $1.6 million in unemployment insurance benefits from nine states, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Josh P. Hauxhurst, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Detroit Field Office, and Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.
Jordan Armstrong, 29, of Detroit, was sentenced by United States District Judge Victoria A. Roberts in United States District Court in Detroit this morning.
According to court records, beginning in early May 2020, and continuing through October 2020, Armstrong, without various individuals’ knowledge or approval, submitted fraudulent applications for unemployment insurance benefits in the names of individuals in Michigan, California, Texas, Arizona, Pennsylvania, Tennessee, Massachusetts, New York, and Louisiana. Armstrong attempted the same scheme in eight other states—in total filing more than 300 claims across 17 states and territories. Armstrong submitted these claims using individuals’ Social Security Numbers and other personal identifiable information. Armstrong directed the benefits to be paid out via debit cards and then used these cards to repeatedly withdraw the funds via ATMs throughout Metro Detroit.
Armstrong was also ordered to pay restitution to the victim-states in the total amount of $1,611,202.
“Today’s sentence is another example of our ongoing efforts to investigate and prosecute the unprecedented theft of unemployment insurance benefits that occurred during the pandemic. These expanded unemployment insurance benefits were intended as a lifeline
for those needing help during a time of great stress and uncertainty. We will continue to hold the individuals who stole those monies accountable,” stated U.S. Attorney Dawn N. Ison.“Mr. Armstrong’s scheme exploited programs designed to support small businesses and unemployed Americans and diverted money away from those who were in need during the pandemic,” said Josh Hauxhurst, Acting Special Agent in Charge of the FBI’s Detroit Division. “Thanks to the hard work of all the agencies involved in this investigation, Mr. Armstrong has been held to account for his criminal actions.”
“Jordan Armstrong defrauded multiple state workforce agencies of more than $2.6 million by filing for unemployment insurance benefits in the names of identity theft victims. 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, Chicago Region, U.S. Department of Labor Office of Inspector General.
The investigation of this case was conducted by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General, with the assistance of the Birmingham Police Department. The case was prosecuted by Assistant United States Attorney Ryan A. Particka.
Case Concludes Involving Organized Fraud Ring in DetroitRead the Press Release
The last of eight members of an organized fraud ring based in Detroit has been sentenced, concluding a multi-year prosecution that originated with a twenty-three-count indictment alleging conspiracy to commit wire fraud, conspiracy to commit money laundering, and aggravated identity theft, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Josh P. Hauxhurst, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Detroit Field Office, Rodney Hopkins, U.S. Postal Inspector in Charge, U.S. Postal Inspection Service, Detroit Division, Reginal A. DeMatteis, Special Agent in Charge, United States Secret Service, Charlotte Field Office, and Michael Patton, Chief of Police, West Bloomfield Police Department.
Today, Tayan Jackson, 35, of Los Angeles, CA, was sentenced to 2 years in federal prison by U.S. District Judge Terrence G. Berg. The defendant was also ordered to repay $404,386.70 in restitution. Collectively, the defendants in this case have been ordered to pay more than $2.3 million in restitution.
According to court records, the defendants obtained stolen credit card information on the dark web and from other sources, which they then used to produce counterfeit or “cloned” credit cards. The defendants then traveled to Walmart stores throughout the United States, often in small groups, where they used the cloned credit cards of the unwitting accountholders to purchase gift cards, typically in $500 increments. Members of the group often purchased tens of thousands of dollars in gift cards in a single day, hitting multiple Walmart stores in a given city before returning home to Michigan. Upon their return, the gift cards were then resold for cash and other items, to conceal and disguise the nature and source of the illicit proceeds. The scheme began in 2015, lasted for nearly three years, and resulted in millions in losses.
During the investigation, the government also discovered that the group was involved in yet another fraudulent scheme, which began in 2017 and targeted AT&T. The defendants used personal identifiable information that they obtained from the dark web and other sources to create cell phone accounts with AT&T, all without their victims’ knowledge or permission. Members of the group and others would then purchase Apple iPhones using the victims’ accounts. The iPhones were then resold for profit. Multiple defendants pleaded guilty to their involvement in the AT&T scheme and received sentences ranging from 4 to 8 years.
“This was an incredibly sophisticated group, who engaged in widespread fraud across multiple states over multiple years, stealing millions of dollars in the process,” stated United States Attorney Dawn N. Ison. “This prosecution is a prime example of our commitment to breaking up these organized crime rings, and holding their members accountable for the full scope of their criminal conduct.”
Ison also applauded all of the work that went into the prosecution, remarking, “This was a team effort, and I want to thank not only our federal law enforcement partners, but the numerous state and local law enforcement agencies around the country who assisted in identifying the members of this group. I also want to commend the incredible work done by Walmart’s Global Investigations Team, AT&T’s Asset Protection Team, and American Express Global Security—all of which were integral to the investigation and successful prosecution of this group.”
“Identity theft and credit card fraud are not victimless crimes. They have a profound negative impact on the individual whose identity is stolen,” said Josh Hauxhurst, Acting Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI will continue to work in close partnership with the members of the Detroit Metro Identity Theft Task Force to identify and disrupt individuals and criminal organizations engaged in these schemes.”
“For several years, these individuals thought they had gotten away with their scheme to exploit Personally Identifiable Information (PII), obtained via the dark web, and use it to steal from retailers and rob their victims of their financial information. Today’s conclusion of this case serves as a reminder to those who engage in a criminal enterprise that law enforcement will spare no resource to find you and bring you to justice for your criminal activity,” said Inspector in Charge Rodney M. Hopkins, U.S. Postal Inspection Service, Detroit Division.
“Today’s announcement illustrates the Secret Service’s commitment to combating identity theft,” said Reginald A. DeMatteis II, Special Agent in Charge, Secret Service Charlotte Field Office. “This case was a collaborative effort between the law enforcement community and the private sector to bring those who choose to victimize the American public to justice.”
The case was investigated by the FBI Detroit Metro Identity Theft Task Force, which includes representatives of the FBI, Auburn Hills Police Department, Birmingham Police Department, and Bloomfield Township Police Department along with assistance from the US Postal Inspection Service, West Bloomfield Township Police Department and Ellisville, MO Police Department. The case was prosecuted by Assistant U.S. Attorneys Ryan A. Particka and Mark Chasteen.Warren Man Sentenced to 10 years in Federal Prison for Coercion and Enticement of a MinorRead the Press Release
DETROIT, MI – Marvin Booker, 30, of Warren, MI, was sentenced in federal court for coercion and enticement of a minor, United States Attorney Dawn N. Ison announced today. Booker was sentenced by United States District Judge Gershwin Drain to ten years in federal prison, followed by five years of supervised release. Booker has been in custody since his arrest in March 2020.
Joining in the announcement was Josh Hauxhurst, Acting Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, and William Dwyer, Commissioner for the Warren Police Department.
According to court records, Booker sexually exploited a 16-year-old girl for his own profit by having her perform commercial sex dates. Booker posted the minor for dates online, transported her to dates and rented hotel rooms, and took money that the minor was paid for performing sex acts. In addition, Booker instructed the victim to send sexually explicit images to him for the online advertisements.
“Human traffickers like this defendant exploit and endanger some of the most vulnerable members of our society and cause their victims indescribable harm,” stated U.S. Attorney Dawn N. Ison. “He manipulated, threatened, and trafficked a minor victim to profit from the sex work she conducted. We hope that today’s sentence offers the victim a sense of justice and closure and sends the message that we will not tolerate sex trafficking in our communities.”
“This defendant preyed upon a very vulnerable teenager by promising her shelter, money, and affection. Instead of providing those things, he callously sold her to other men for his own financial benefit,” said Josh Hauxhurst, Acting Special Agent in Charge of the FBI’s Detroit Division. “The FBI, Warren Police Department, and law enforcement partners across Southeast Michigan will work tirelessly to protect our children from this type of predatory behavior.”
“Our Detectives did an excellent job in advocating for this minor victim survivor and pursuing charges in partnership with the FBI,” said William Dwyer, Commissioner for the Warren Police Department. “Warren will continue to have zero tolerance for commercialized sex and offenses that breed human trafficking in our communities.”
On January 31, 2022, Attorney General Merrick B. Garland released the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act, which aims to enhance the department's capacity to prevent human trafficking; to prosecute human trafficking cases; and to support and protect human trafficking victims and survivors.
Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:
- Strengthen engagement, coordination and joint efforts to combat human trafficking in U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.
- Establish federally-funded, locally-led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.
- Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.
- Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.
- Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.
- Expand dissemination of federal human trafficking training, guidance and expertise.
- Advance innovative demand-reduction strategies.
To learn more about the Department’s efforts to combat human trafficking, please visit www.justice.gov/opa/pr/attorney-general-merrick-b-garland-announces-justice-department-strategy-combat-human.
To learn more about human trafficking indicators visit www.dhs.gov/blue-campaign/indicators-human-trafficking. If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the FBI and the Warren Police Department and was prosecuted by Assistant United States Attorney Barbara Lanning.Former Financial Secretary-Treasurer of UAW Local 412 Pleads Guilty to Embezzling over $2 Million in Union FundsRead the Press Release
DETROIT, MI – Timothy Edmunds, the former Financial Secretary-Treasurer of Local 412 of the United Auto Workers union, pleaded guilty today to embezzling $2.2 million in union funds and to money laundering, announced U.S. Attorney Dawn N. Ison.
Joining in the announcement are Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Josh Hauxhurst, Acting Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Timothy Edmunds, 54, of South Lyon, Michigan, pleaded guilty to Counts 1 and 3 of the Indictment, to the crimes of embezzling union funds and money laundering, respectively, before United States District Judge Sean Cox.
Between 2011 and 2021, Edmunds served as the Financial Secretary-Treasurer of union Local 412 of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”). UAW Local 412 is headquartered in Warren, Michigan, and it represents approximately 2,600 members employed by the automaker FCA US LLC, which is owned by Stellantis N.V. The local union’s members include many of those employed at the following Stellantis facilities located within the Detroit area: Sterling Stamping Plant, Mack Engine Plant, Warren Truck Assembly Plant, Warren Stamping Plant, and Jefferson Assembly Plant.
As an elected officer of UAW Local 412, Edmunds was responsible to hold Local 412’s money and property solely for the benefit of the organization and its members and to manage, invest, and expend the funds in accordance with the UAW constitution and Local 412 bylaws. Instead, Edmunds systematically drained the Local 412 accounts of $2.2 million by (1) using Local 412 debit cards for over $142,000 in personal purchases, (2) cashing Local 412 checks worth $170,000 into accounts he personally controlled, and (3) transferring $1.5 million from bona fide Local 412 accounts into accounts that he personally controlled. Edmunds then converted the funds for his own personal use.
To conceal his theft from other UAW officers and the Local 412 members, Edmunds created false bank statements and caused false Department of Labor (“DOL”) reports to be filed with the U.S.
DOL. Edmunds supplied the fake bank statements to international UAW auditors in an effort to conceal his embezzlement.
Evidence indicates that Edmunds used portions of the proceeds of his embezzlement to gamble extensively, to purchase firearms, and to purchase various high-end vehicles. For example, between 2018 and 2020, Edmunds used the UAW Local 412 debit card to make over $30,000 in unauthorized withdrawals at the Greektown Casino. While gambling at the Greektown Casino, records indicate that Edmunds had cash buy-ins of over $1 million, and he put over $16 million in play while gambling at the casino.
Based on his conviction for embezzling union funds, Edmunds faces a maximum of five years in prison and a fine of up to $10,000. For money laundering, Edmunds faces a maximum of ten years in prison and a fine of up to $250,000.
Under the terms of the parties’ Rule 11 Plea Agreement, Edmunds faces a sentencing guideline range of between 46 to 57 months in prison. Edmunds also will owe $1.9 million in restitution to the UAW. Although Edmunds embezzled $2.2 million in UAW funds, Edmunds returned approximately $300,000 in stolen UAW funds before his crimes were discovered.
Edmunds is the seventeenth defendant convicted in connection with the ongoing criminal investigation into corruption within the UAW or relating to illegal payoffs to UAW officials by FCA executives. The following other individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former UAW President Gary Jones (28 months), former FCA Vice President for Employee Relations Alphons Iacobelli (66 months), former FCA Financial Analyst Jerome Durden (15 months), former Director of FCA’s Employee Relations Department Michael Brown (12 months), former senior UAW officials Virdell King (60 days), Keith Mickens (12 months), Nancy A. Johnson (12 months), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months), former UAW Vice President Norwood Jewell (15 months), former senior UAW official Michael Grimes (28 months), former UAW Midwest CAP President Edward “Nick” Robinson (12 months), former UAW Vice President Joseph Ashton (30 months), former UAW President Dennis Williams (21 months) and former UAW Region 5 Director UAW Board member Vance Pearson (12 months). The company, FCA US LLC, now known as Stellantis, pleaded guilty in January 2021 to conspiring to violate the Taft-Hartley Act, and was ordered to pay a fine of $30 million and be subject to an outside Monitor for three years. Former senior UAW official Jeffrey Pietrzyk passed away before being sentenced.
In December 2020, the United States filed a civil lawsuit against the International UAW under the Anti-Fraud Injunction Act based on the criminal investigation of the UAW, FCA US LLC, and FCA’s executives. Subsequently, the United States and the International UAW entered into a Consent Decree to settle the lawsuit that was approved by the U.S. District Court. The Court has appointed attorney Neil Barofsky to serve as the Independent Monitor of the UAW for six years. The Monitor is tasked with providing federal oversight of the UAW concerning fraud, corruption, and misconduct within the UAW.
U.S. Attorney Dawn Ison commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“The hard-working men and women of the UAW deserve leaders dedicated to serving the best interests of the membership,” said United States Attorney Dawn N. Ison. “Today’s conviction demonstrates our zealous pursuit of those who would seek to take advantage of their positions of trust within the UAW to steal and defraud union members.”
"Timothy Edmunds engaged in a multifaceted scheme to embezzle funds from UAW Local 412 and conceal his crimes from the union's membership. He embezzled approximately $2 million to personally enrich himself at the expense of dues-paying UAW 412 members. We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“By stealing money from the union, Tim Edmunds betrayed the UAW members who elected him to serve on their behalf," said Josh Hauxhurst, Acting Special Agent in Charge of the FBI's Detroit Field Office. “The FBI will continue to work with our federal partners to root out corruption from the UAW and other labor unions.”
“Mr. Edmunds is yet another example of a UAW official enriching himself at the expense of the UAW membership. IRS Criminal Investigation will continue working with our law enforcement partners to vigorously investigate allegations of fraud involving UAW officials.” said Special Agent in Charge Sarah Kull, Internal Revenue Service – Criminal Investigation, Detroit Field Office.
The case is being prosecuted by Assistant U.S. Attorney David A. Gardey.An Inkster Resident Charged with Bank RobberyRead the Press Release
DETROIT, MI – An Inkster resident appeared in federal court this afternoon in Detroit on charges stemming from a bank robbery in Dearborn, Michigan, announced United States Attorney Dawn N. Ison.
Joining United States Attorney Dawn Ison in the announcement is Acting Special Agent in Charge Josh Hauxhurst, Federal Bureau of Investigation, Detroit Division and Issa Shahin, Chief, Dearborn Police Department.
Appearing was Charles William Woolery, age 52.
According to court records, on March 2, 2022, at approximately 3:04 p.m., Woolery, wearing a tan Carhartt suit, black beanie hat, and a black facemask, entered the Dearborn Federal Savings Bank, located at 22315 Michigan Avenue in Dearborn, approached a victim teller, handed her a note and gestured to his hip as if he had a weapon. The note demanded the teller to “smile” and put money in a bag or Woolery would “kill everyone.” The teller, fearing for her safety, placed $1,690 in a black bag and handed it to Woolery. Woolery then fled the bank on foot and was later arrested by Dearborn police officers, without incident, in a Port-a-John located in the parking lot of the Hampton Inn on Michigan Avenue. Officers found the $1,690 in the front of a Lions’ hoodie that Woolery was wearing. Officers also found the black beanie hat, black facemask, the robbery note, a full tan Carhartt style suit, and tan gloves like those used in the bank robbery in the Port-a-John where Woolery was found hiding.
A criminal complaint is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Trial cannot be held on felony charges in a complaint. When the investigation is completed, determinations will be made whether to seek a felony indictment.
If convicted, Woolery faces a statutory maximum penalty of 20 years in prison for bank robbery. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case is being investigated by special agents of the FBI along with the assistance of the Dearborn Police Department. Assistant U.S. Attorney Rosemary Gardey is prosecuting the case.Southfield Resident Sentenced to More Than Ten Years in Federal Prison for Drug TraffickingRead the Press Release
DETROIT – U.S. District Court Judge Stephen J. Murphy sentenced Leron Liggins, 34, formerly of Southfield to 10 ½ years in federal prison on Tuesday, March 22, 2022, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Acting Special Agent in Charge Kent R. Kleinschmidt, Drug Enforcement Administration, Detroit Field Division and Special Agent in Charge Paul D. Vanderplow, Bureau of Alcohol, Tobacco, Firearms and Explosives, Detroit Field Division.
In October 2021, a jury found Liggins guilty of one count of participating in a drug conspiracy and one count of possession with intent to distribute heroin. The evidence at trial established that from 2015 to 2018, Liggins distributed heroin by concealing it in suitcases flown across the United States to be sold in Michigan. Liggins also paid others to travel across the country with drugs and cash concealed in their checked luggage so that those drugs could be sold in several other states.
“This defendant engaged in a conspiracy to distribute illicit drugs that endangered our neighborhoods and ruined lives,” said U.S. Attorney Dawn Ison. “I hope that a significant sentence like the one handed down in this case sends the clear message that our office and our law enforcement partners are committed to disrupting drug trafficking and prosecuting those who seek to profit by sending dangerous drugs into our communities.”
“This sentencing should serve as a notice to would-be drug traffickers that DEA and our law enforcement partners will employ every resource to bring you to justice,” said Acting Special Agent in Charge Kent R. Kleinschmidt. “Mr. Liggins has a demonstrated pattern of trading the suffering of others for his own personal gain and that pattern has come to an end.”
This case was the result of a joint investigation by the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant United States Attorneys Andrea Hutting and Tim McDonald.US Attorney’s Office Settles ADA Complaint Involving Area Ophthalmology PracticeRead the Press Release
Detroit, MI – The United States Attorney’s Office for the Eastern District of Michigan announced today that it has reached a settlement with Vitreoretinal Specialists, PLC, which is also known as Retina Associates of Michigan – an ophthalmology practice with three locations in eastern Michigan. The settlement resolves an allegation that it refused to allow a service animal to accompany an individual with a disability beyond its patient waiting area.
“Service animals are a critical support for many individuals with disabilities. People who depend on service animals to assist them deserve the same access to our community as individuals who do not, and that is particularly true for access to health care services,” said Dawn Ison, U.S. Attorney for the Eastern District of Michigan.
Under the settlement agreement, Vitreoretinal Specialists, PLC will adopt a non-discrimination policy that permits service animals to accompany individuals with disabilities into examination and treatment rooms, train its employees on the ADA, and post its non-discrimination policy in its facilities and on its website. Additionally, Vitreoretinal Specialists, PLC will pay damages to the affected patient.
The ADA prohibits discrimination against people with disabilities by public accommodations, such as the professional office of health care provider. Public accommodations must allow people with disabilities the full and equal enjoyment of their goods, services, and facilities, which includes making reasonable modifications of their policies, practices, and procedures to permit people with disabilities to be accompanied by service animals.
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 settlement agreement with Vitreoretinal Specialists, PLC, please visit https://www.justice.gov/usao-edmi/programs/civil-rights. ADA complaints may be emailed to [email protected] or by contacting the U.S. Attorney's Office’s Civil Rights Hotline at (313) 226-9151.
More information about the ADA is available at the Justice Department’s toll free ADA Information line at (800) 514 0301 or (800) 514 0383 (TTY) and on the ADA website at www.ada.gov.Pharmacist Charged in a Scheme to Bill Insurance for Medications Not DispensedRead the Press Release
DETROIT - A Dearborn Heights pharmacist was arrested today for committing health care fraud.
United States Attorney Dawn N. Ison was joined in this announcement by the FBI’s Acting Special Agent-In-Charge, Josh P. Hauxhurst and HHS-OIG Special Agent-in-Charge Mario Pinto.
Zeinab Makki, 59, was charged with a criminal complaint, unsealed today, in the Eastern District of Michigan with one count of health care fraud. She is scheduled to make an initial appearance today before a United States Magistrate Judge.
According to the criminal complaint, Zeinab Makki submitted or caused to be submitted at least $10.6 million in claims to Medicare and Medicaid for pharmaceuticals that were not actually dispensed. Makki submitted these claims while working as the pharmacist-in-charge at two Inkster pharmacies, New Millennium Drugs and Western Wayne Pharmacy.
“Taxpayers fund Medicare and Medicaid systems to provide critical resources for senior citizens and other beneficiaries,” said U.S. Attorney Dawn Ison. “We hope that today’s charge reflects my office’s commitment to holding medical providers accountable who engage in such misconduct and exploit these programs for personal benefit.”
“Makki allegedly engaged in a health care fraud scheme that stole millions of dollars over several years from a system designed to provide health care to those in need. The FBI is committed to working with our partners to stop these illegal acts and hold accountable those who commit them,” said Acting Special Agent in Charge Josh Hauxhurst of the FBI’s Detroit Division.
“HHS-OIG is committed to investigating allegations of fraud in our Federal health care programs,” said Special Agent in Charge Mario M. Pinto. “We will continue to work together with our law enforcement partners to ensure that those engaged in this type of fraud are held accountable.”
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Trial cannot be held on felony charges in a complaint. When the investigation is completed, determinations will be made whether to seek a felony indictment.
If convicted of a health care fraud charge, the defendant faces a maximum sentence of imprisonment of ten years, and a maximum fine of $250,000. If convicted of the money laundering charges, the defendants face up to twenty years’ imprisonment. Upon conviction, the court would be required to impose both forfeiture and restitution judgments.
The case was investigated by Special Agents of the HHS and FBI, with cooperation and assistance from the Michigan Department of Health and Human Services - Office of Inspector General.
The case is being prosecuted by Assistant United States Attorney Philip A. Ross.Michigan Man Charged with Using $1 million in Covid-Relief Loans to Purchase Seaview Condominium in Beirut, LebanonRead the Press Release
DETROIT, MI - A Dearborn Heights man was arrested today in connection with a wire fraud and money laundering scheme involving more than $1 million Economic Injury Disaster Loans. United States Attorney Dawn N. Ison was joined in this announcement by the FBI’s Acting Special Agent-In-Charge, Josh P. Hauxhurst.
Wahid Mohamed Makki, 59, was charged with a criminal complaint, unsealed today, in the Eastern District of Michigan with one count of wire fraud and one count of money laundering. He is scheduled to make an initial appearance today before a United States Magistrate Judge. According to the criminal complaint, Wahid Makki transferred approximately $1,082,600 from ten separate EIDL loans obtained for 10 shell corporations to a bank in the Republic of Turkey via international wire. The wire transfer instructions reflect that the Wahid Makki transferred the funds for the purchase of a “sea view condo in Beirut, Lebanon.”
The CARES Act is a federal law enacted March 29, 2020. The CARES Act authorizes the SBA to provide Economic Injury Disaster Loans (EIDL) of up to $2 million to eligible small businesses experiencing financial disruption due to the COVID-19 pandemic.
My office remains committed to using every available federal tool — including both criminal and civil remedies — to combat and prevent COVID-19 related fraud,” said United States Attorney Dawn Ison. “We will continue to hold accountable those who seek to exploit the pandemic for personal gain, to protect vulnerable populations, and to safeguard the integrity of taxpayer-funded programs.”
“Economic Injury Disaster Loans played a significant role in keeping many Michigan businesses running during the pandemic,” said Josh Hauxhurst, Acting Special Agent in Charge of the FBI’s Detroit Division. “This defendant is alleged to have taken money from that program and used it to purchase property overseas. This is a serious crime and the FBI is committed to finding and investigating anyone guilty of defrauding this program.”
A criminal complaint is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Trial cannot be held on felony charges in a complaint. When the investigation is completed, determinations will be made whether to seek a felony indictment.
This case was investigated by the FBI. Assistant United States Attorney Philip A. Ross is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-formFederal Court Rules in Favor of the Justice Department in Lawsuit Against City of Troy, Michigan for Restrictions on Places of Worship and Treatment of Muslim Religious GroupRead the Press Release
Detroit, MI – Late Friday, March 18, 2022, a federal judge ruled in favor of the Justice Department, finding that the City of Troy, Michigan violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA). The judge found that Troy’s zoning practices treat places of worship worse than equivalent nonreligious assemblies. The judge also found that Troy’s zoning denial substantially burdened the religious exercise of a Muslim group seeking to establish the only permanent place of Islamic worship in the City of Troy. Accordingly, the judge entered an order enjoining Troy from enforcement of the discriminatory provisions of its zoning ordinance.
“I am very pleased that the Court recognized Troy’s unequal treatment of places of worship and the impact on Troy’s Muslim community,” said Dawn Ison, United States Attorney for the Eastern District of Michigan. “My office always seeks to work cooperatively with local governments to resolve civil rights disputes. However, when that is not possible, we will not hesitate to prosecute those cases.”
The Justice Department originally filed suit in 2019, after Troy denied zoning approval to Adam Community Center (Adam), an organization of Muslims who live and work in Troy, to operate a place of worship. In 2018, after a nine-year search for a permanent location in Troy, Adam acquired a building in one of Troy’s commercial districts to use as a community center and place of worship. Troy’s zoning ordinance would allow a nonreligious place of assembly, such as a theater or banquet hall, to use the same building without further approval. But because of Troy’s zoning restrictions unique to places of worship, Adam had to seek Troy’s approval to operate in the building. On June 19, 2018, Troy’s zoning board denied Adam’s application. The Justice Department investigated and subsequently filed suit.
The judge’s opinion quoted from RLUIPA’s legislative history, noting that, “RLUIPA was enacted to protect assemblies like Adam from discrimination in zoning laws that ‘lurks behind such vague and universally applicable reasons as traffic, aesthetics, or ‘not consistent with the city’s land use plan.’’” The opinion also noted that, “Adam has searched for a suitable property for many years and purchased the Property at issue here at great cost ...”, and that Troy had “…no compelling governmental interest in prohibiting Adam, a religious place of assembly, from operating from the Property.”
This case was litigated by Assistant United States Attorneys Shannon Ackenhausen and Susan DeClercq of the United States Attorney’s Office for the Eastern District of Michigan as well as trial attorneys from the Civil Rights Division’s Housing and Civil Enforcement Section.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other
religious institutions to worship on their land. More information is available at
www.justice.gov/crt/placetoworship.
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 court’s opinion and order, 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.U.S. Attorney’s Office Files Lawsuit Against Flint Neurological Centre P.C. for Violating the Rights of Individuals Who Have DisabilitiesRead the Press Release
FLINT, MI -- The U.S. Attorney’s Office for the Eastern District of Michigan today announced that it has filed a lawsuit against Flint Neurological Centre P.C., alleging that the medical practice violated Title III of the Americans with Disabilities Act by refusing to provide auxiliary aids and services required to ensure effective communication with patients who are deaf or hard of hearing, such as sign language interpreters.
“The ADA protects fundamental rights of individuals with disabilities, including the ability to access health care services. My office is committed to protecting those rights,” said Dawn Ison, United States Attorney for the Eastern District of Michigan. “No one should be denied meaningful access to health care services, including the ability to exchange critical information with their medical providers.”
The complaint, filed in the Eastern District of Michigan, alleges that Flint Neurological Centre has a long history of failing to provide aids and services necessary to ensure effective communication with patients who are deaf or hard of hearing, including a previous investigation by the Michigan Department of Civil Rights. The complaint further alleges that Flint Neurological Centre failed to provide sign language interpreters or any other communication aids to five patients, in some cases, over several years of treatment. For one patient, the complaint alleges that his relative would travel 200 miles across state to attend medical appointments, because Flint Neurological Centre repeatedly failed to provide a sign language interpreter and important medical information could not be communicated without her assistance.
Title III of the ADA prohibits discrimination against people with disabilities by public accommodations, such as the professional office of health care provider. Public accommodations must allow people with disabilities the full and equal enjoyment of their goods, services, and facilities. This obligation requires the provision of auxiliary aids and services, such as sign language interpreters, when necessary to effectively communicate with patients who are deaf or hard of hearing
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 complaint, please visit https://www.justice.gov/usao-edmi/programs/civil-rights. ADA complaints concerning Flint Neurological Centre or any other entity may be emailed to [email protected] or by contacting the U.S. Attorney's Office’s Civil Rights Hotline at (313) 226-9151.
More information about the ADA is available at the Justice Department’s toll free ADA Information line at (800) 514 0301 or (800) 514 0383 (TTY) and on the ADA website at www.ada.gov. Information about the Justice Department’s Barrier-Free Health Care Initiative to ensure that people who have disabilities, including those who are deaf or hard of hearing, have equal access to medical services is available at www.ada.gov/usao-agreements.htm.
Ypsilanti man sentenced for possessing a machinegun and helping a convicted felon possess a second machinegunRead the Press Release
An Ypsilanti man was sentenced yesterday to one year in federal prison after pleading guilty to possessing an illegal machinegun and aiding and abetting a convicted felon’s possession of a second illegal machinegun, announced United States Attorney Dawn Ison.
Joining Ison in the announcement was Josh Hauxhurst, Acting Special Agent in Charge of the Federal Bureau of Investigation’s Detroit Field Office.
United States District Judge Judith Levy sentenced Danny Jo Thompson, 30, after he pleaded guilty to building and possessing an illegal machinegun and to helping a convicted felon—Eric Allport—build and possess his own machinegun. Evidence showed that Thompson and Allport shared violent, anti-law enforcement beliefs, culminating in Allport shooting an FBI agent in October 2020: law enforcement found Allport’s fully automatic machinegun and hundreds of rounds of ammunition in his truck at the scene of the shootout.
Evidence showed that Thompson and Allport were self-identified Boogaloo adherents, a decentralized, primarily anti-government, anti-authority, anti-law enforcement movement. Thompson and Allport regularly and openly espoused violent, anti-law enforcement rhetoric. Allport specifically sent Thompson messages about his willingness and desire to shoot law-enforcement officers. At the same time that they shared these communications, Thompson built himself an illegal machinegun. And knowing that Allport was a felon—knowing that Allport wanted to shoot a law-enforcement officer—Thompson also bought the parts and helped Allport build his own machinegun.
On October 2, 2020, FBI agents attempted to arrest Allport on weapons charges. Allport pulled out a gun and started shooting at the agents, hitting one, and dying in the return fire. Allport’s machinegun and hundreds of rounds of ammunition—some in magazines taped together to allow for faster changing of magazines—were in his truck in the same parking lot as the shootout. Thompson’s violent, anti-law enforcement statements to Allport encouraged this outcome.
“This defendant armed Eric Allport, a felon, who repeatedly expressed his desire to commit violence against law enforcement—those who swore an oath to protect us,” said US Attorney Ison. “Allport later shot an FBI agent in a busy commercial parking lot. Anyone thinking about committing a violent act against law enforcement or arming someone else who commits such an act needs to know that we will prosecute you aggressively. Violence against our community or law enforcement will not be tolerated.”
“It is difficult to calculate the injury and loss of life that could have resulted from the use of these illegal machineguns in a confrontation with law enforcement. Fortunately, the FBI's Joint Terrorism Task Force was able to disrupt the threat posed by Thompson and Allport ,” said Josh P. Hauxhurst, Acting Special Agent in Charge of the FBI’s Detroit Office. “Preventing gun violence is a top priority for the FBI and this investigation is an example of the kind of work we do every day to keep our communities safe.”
This investigation was led by FBI agents assigned to the Joint Terrorism Task Force, and the case was prosecuted by Assistant U.S. Attorney Hank Moon.
Lansing Man Convicted on 5 Counts Relating to the Production and Receipt of Child Pornography Receives 300 Months in Federal PrisonRead the Press Release
DETROIT – A federal judge today sentenced a Lansing, Michigan man to 300 months in federal prison after having been convicted on multiple charges relating to the production and receipt of child pornography, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Acting Special Agent in Charge James Harris, Homeland Security Investigations and R. Alan Booth, Acting Chief Patrol Agent, Detroit Sector Border Patrol.
Sentenced was Michael McShan, 28.
The 5-day trial, which began on October 28, 2021, was conducted before United States District Judge David M. Lawson in Detroit. The jury deliberated approximately an hour before returning the guilty verdicts.
According to evidence presented during the trial, in December 2018, McShan met a minor female (MV-1) on a social media site called “MeetMe,” and then began communicating with MV-1 via Snapchat, cellphone calls and text messages. McShan quickly began an abusive and sexual relationship with MV-1. McShan enticed and persuaded MV-1 to produce images and videos of herself and another minor female victim (MV-2) engaging in sexually explicit conduct. Over the course of a few months, McShan, became increasingly controlling over MV-1. McShan coerced and enticed MV-1 through flattery, threats, and guilt to manipulate MV-1 into continuing to send him sexually explicit photos and videos as well as money.
Evidence further showed that in an attempt to get released on bond pending his trial, McShan directed his then-girlfriend to write a false confession to the child exploitation crimes.
McShan was convicted of production of child pornography; attempted production of child pornography; receipt of child pornography; coercion and enticement of a minor, and obstruction of justice. Upon release, McShan will be on supervised release for the rest of his life.
“Protecting children from dangerous child predators is a top priority for our office,” said US Attorney Ison. “I commend our law enforcement partners for their hard work and dedication to investigating and prosecuting crimes against children.”
“McShan’s horrific acts underscore the importance of talking with your children about the dangers of interacting with people they don’t know online,” said HSI Detroit acting Special Agent in Charge James C. Harris III. “Our agents along with our Border Patrol and DHS partners remain committed to bringing predators like McShan to justice, and providing care and support to the victims of these crimes.”
“I’m immensely proud of the collaborative effort between Border Patrol agents and HSI agents that led to the conviction of this man who committed heinous crimes,” said R. Alan Booth (A) Chief Patrol Agent, Detroit Sector Border Patrol. “Our mission encompasses many factors but protecting the communities we live in is always our priority.”
The case was investigated by HSI and US Border Patrol agents assigned to the DHS Alliance Human Trafficking Task Force. The case was prosecuted by Assistant United States Attorneys Maggie Smith and Sara Woodward.
Southfield Resident Sentenced to 15 Years in Federal Prison for Sex TraffickingRead the Press Release
DETROIT - Tory Anderson, 34, formerly of Southfield, Michigan, was sentenced today in federal court to 15 years in prison after previously pleading guilty to one count of sex trafficking a minor, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Acting Special Agent in Charge Josh P. Hauxhurst, Federal Bureau of Investigation, Detroit Division.
According to court records, during the summer of 2019, Anderson trafficked a 17-year-old minor girl for commercial sex in Michigan and elsewhere. Anderson acted as her pimp by setting up commercial sex dates and receiving the proceeds, providing supplies such as food and condoms, and monitoring when sex customers were coming and going. Anderson also had the minor girl tattoo his name on her forehead and the side of her face as a way of “branding” her. At the time, Anderson knew she was just 17-years-old. Anderson was arrested on September 3, 2019, at a Roseville, Michigan motel after Anderson provided the minor victim for commercial sex with an undercover officer.
“This defendant exploited a vulnerable young girl by arranging for her to have sex with strangers over and over again for his personal profit,” said U.S. Attorney Dawn N. Ison. “We will continue to work closely with our local law enforcement partners and SEMTEC to vindicate the rights of sex trafficking victims and to protect our most vulnerable citizens from predators like Anderson.”
“Sex traffickers prey on the most vulnerable members of our society,” said Josh P. Hauxhurst, Acting Special Agent in Charge of the FBI’s Detroit Division. “The FBI’s Southeast Michigan Trafficking and Exploitation Crimes Task Force will continue to work with our law enforcement partners to recover trafficking victims and put the perpetrators behind bars.”
This case was the result of a joint investigation by the Roseville Police Department and the Southeast Michigan Trafficking and Exploitation Crimes Task Force (“SEMTEC”) of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Frances Carlson and Erin Ramamurthy.
Waterford Resident and Registered Sex Offender Sentenced to 50 Years in Federal Prison for Sexual Exploitation of Several ChildrenRead the Press Release
A Waterford man was sentenced today to 50 years in federal prison after having pleaded guilty to production of child pornography and commission of an offense against a child by a registered sex offender, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Acting Special Agent in Charge James C. Harris of the Department of Homeland Security, Homeland Security Investigations.
Jostin Arthur Desco, 28, was sentenced by United States District Judge Judith E. Levy.
According to court records, Desco sexually exploited at least ten different children using a variety of methods. Desco sexually assaulted a 7 year-old boy who he knew well, recorded that abuse, and sent it to others on the dark web. Desco also used fake personas to convince several teenage boys to produce sexually explicit images and videos of themselves. Desco, using this fake persona, then convinced the boys to send the material to him. Desco then blackmailed several victims into producing more child pornography for him. Desco even attempted to get some victims to commit sex acts on their siblings as part of the extortive conduct. Desco was also a member of several groups, both on the dark web and the open web, that traded child pornography. Some communications between Desco and other were recovered, including one series of messages where Desco stated, “Yes I am sick and yes I am a monster.”
Desco committed most of these crimes while on parole for a previous offense of distributing child sexually abusive material. That crime required him to register as a sex offender.
“The actions of this defendant are reprehensible and demonstrate how a sexual predator can use the internet to victimize innocent children,” said US Attorney Ison. “The lengthy sentence in this case will ensure that Desco will never be able to harm a child again. It should send a clear message that those who prey on our most vulnerable citizens will be held accountable. We also hope this sentence helps to bring closure to the victims and their families.”
“Desco’s horrific crimes hurt the most vulnerable members of our community,” said HSI Detroit acting Special Agent in Charge James C. Harris III. “This sentencing sends a powerful message to those who would prey on the innocent and serves as a reminder of the work necessary to catch these predators and remove them from our communities.”
This case was investigated by the Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Assistant United States Attorneys Kevin M. Mulcahy and Rosemary Gardey.
Former Hamtramck Police Officer Charged with BriberyRead the Press Release
DETROIT - A federal criminal complaint was unsealed today charging a former Hamtramck Police Department officer with bribery, United States Attorney Dawn N. Ison announced. The charges were brought against Michael Stout, 60, of St. Clair Shores, who left the Hamtramck Police Department in 2020.
Ison was joined in the announcement by Acting Special Agent in Charge Josh P. Hauxhurst, Federal Bureau of Investigation, Detroit Division.
According to the criminal complaint, while working as an officer with the Hamtramck Police Department, Stout accepted bribes, including a vehicle and $1,500 in cash, from a towing company operator.
In return, Stout provided information from the Michigan Law Enforcement Information Network (or LEIN), a restricted law enforcement database, to the towing company operator. For instance, when the towing company operator told Stout that he was worried that a police vehicle had been following him, Stout called an unwitting employee to search LEIN so STOUT could provide the vehicle’s registration information to the towing company operator.
The bribery charge carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000.
This is the sixth defendant 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.
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Steven P. Cares.
A criminal complaint is only a charging document and is not evidence of guilt.
U.S. Attorney Announces Formation of New Public Corruption and Civil Rights Unit, with Renewed Focus on Prosecuting Criminal Civil Rights Violations and Police Excessive Force Cases.Read the Press Release
U.S. Attorney Dawn Ison announced today that she has formed the office’s Public Corruption and Civil Rights Unit. Although the U.S. Attorney’s office has long investigated and prosecuted criminal civil rights cases and corruption matters, U.S. Attorney Ison has formed this unit to emphasize her priority of prosecuting criminal civil rights and police excessive force cases through the unit and the dedication of additional resources.
U.S. Attorney Ison is emphasizing the office’s determination to prosecute these types of cases. For example, just last year, the U.S. Attorney’s Office successfully prosecuted a man who used racial slurs while brutally attacking a group of African American teenagers at a state park in Monroe, Michigan. The office also prosecuted a former Hamtramck police officer in 2021 for using excessive force against a civilian arrestee and violating the arrestee’s civil rights. “While our office is no stranger to criminal civil rights cases, the formation of the unit is a signal to the community of our renewed focus on civil rights cases and recognizes the work that we have already been doing on this front,” said U.S. Attorney Dawn Ison. According to the FBI’s reported Hate Crimes Statistics, 2020 saw a 6.1% increase in hate crime reports. In particular, reported hate crime incidents against African Americans rose 49 percent from 2019 to 2020 and anti-Asian hate crime incidents rose 77% during the same period. “Hate crimes and other bias-related incidents instill fear across entire communities. We want the community to know that we stand ready to use our office’s resources to the ensure that everyone can live without fear of becoming a crime victim because of where they are from, what they look like, how they worship, or whom they love,” added Ison.
The Public Corruption and Civil Rights Unit will partner with local and federal law enforcement to ensure that allegations of criminal civil rights violations are thoroughly and fairly investigated, that acts constituting federal criminal civil rights violations and the use of excessive force by police officers are sufficiently remedied, and the rights of the victims are vindicated. AUSA David Gardey will serve as Chief of the Public Corruption and Civil Rights Unit.
In addition to the Public Corruption and Civil Rights Unit focused on combatting criminal civil rights violations, the U. S. Attorney’s Office also has a Civil Rights Unit housed in the Civil Division that enforces federal civil anti-discrimination statutes through civil lawsuits and court injunctions.
If you believe you are the victim of a hate crime or believe you witnessed a hate crime:
1. Report the crime to your local police.
2. Quickly follow up this report with a tip to the Federal Bureau of Investigation (FBI).
Individuals who believe they have been a victim of discrimination can call the U. S. Attorney’s
Office Civil Rights Hotline at 313.226.9151 or by sending an email to [email protected].Canadian Pastor Charged with Sex Crime Against a MinorRead the Press Release
DETROIT - A former pastor from Deseronto, Ontario, Canada appeared in federal court today to face charges of traveling in foreign commerce to have sex with a minor, announced Dawn Ison, United States Attorney of the Eastern District of Michigan.
Ison was joined in the announcement by acting Special Agent in Charge James C. Harris III, Homeland Security Investigations.
Charged was Timothy Raymond Milley, 68, who was a minister at the Cataraqui Church in Deseronto, Ontario, Canada from 2009 to 2019.
According to court records, Milley met a 15-year-old girl on the internet and began communicating with her frequently using a popular messaging application. Milley requested that the child create and send him nude images of herself. Milley, who used the alias “Red Rider,” spoke frequently to the victim about sex. On June 20, 2013, Milley traveled from his Ontario home to a town in the Eastern District of Michigan. Milley picked the victim up in front of her high school, then took her to a local motel. Milley then had the child perform sex acts on him at the hotel room. Milley returned to Canada the next day. Thereafter, Milley stopped communicating with the victim. In early 2020, the victim learned that Milley had been arrested for luring a child in Canada. The victim contacted law enforcement, leading to her further disclosures. Milley was extradited from Canada this week.
“I commend this victim for coming forward after these many years to disclose the abuse she suffered. Our office supports victims of sexual abuse, and encourages victims to contact law enforcement, regardless of whether the abuse was recent or in the past,” Ison said. “Protecting children from abuse and holding those individuals who victimize children accountable is something our office is passionate about.”
“HSI is dedicated to safeguarding our communities from sexual predators, especially those in positions of trust,” said HSI Detroit acting Special Agent in Charge James C. Harris III. “Working with our partners, we will continue to prioritize the innocence and well-being of children by diligently investigating online sexual offenses involving minors.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section of the Department of Justice, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
A complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent. The burden is on the government to prove guilt beyond a reasonable doubt.
Repeat Felon Arraigned on Federal Drug and Firearm ChargesRead the Press Release
DETROIT – Kenneth Moss, Jr., 40, of Detroit, was arraigned on an indictment today charging him with three counts of being a felon in possession of a firearm and one count of possession with intent to distribute cocaine United States Attorney Dawn N. Ison announced.
According to court records, Moss allegedly committed the offenses in Wayne County and within the Eastern District of Michigan on March 16, 2020, August 22, 2021, and August 25, 2021. Specifically on March 16, 2020, police officers responded to an alleged assault and contacted Moss, who ran from police. After being detained, police recovered a firearm and a quantity of crack cocaine that was packaged in a way consistent with an intent to distribute. Moss is prohibited from possessing firearms based on multiple prior felony convictions. More recently, on August 22, 2021, Moss is alleged to have fired a handgun outside of a residence. Shortly thereafter, on August 25, 2021, police executed a search warrant at Moss’s residence and recovered the firearm allegedly used to commit the shooting a few days before.
Moss has been in custody since his arrest on February 10, 2022, on a criminal complaint. Moss faces up to ten years in prison if convicted of being a felon in possession of a firearm and up to twenty years in prison if convicted of the drug charge.
An indictment is only a charge and is not evidence of guilt. The government has the burden of proving guilt beyond a reasonable doubt.
The Detroit office of the ATF investigated this case with the assistance of the Detroit Police Department. The case is being prosecuted by Assistant United States Attorneys assigned to the United States Attorney’s Office’s Violent & Organized Crime Unit.
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.
Marlette Man Sentenced to 240 Months for Possession of Child PornographyRead the Press Release
DETROIT – United States District Court Judge Terrence G. Berg sentenced Robert Howard Gratton, 35, of Marlette, to 240 months in prison on charges of possession of child pornography, announced United States Attorney Dawn Ison.
Ison was joined in the announcement by Josh P. Hauxhurst, Acting Special Agent in Charge, Federal Bureau of Investigation, Detroit Division and Brenda Sanford, Sanilac County Prosecutor.
According to court records, Gratton – a registered sex offender who had two prior convictions for offenses related to the possession of child pornography – possessed images of child pornography recovered on his cellular phone during the course of an investigation of a sexual assault he committed.
US Attorney Dawn N. Ison stated, “This significant sentence resulting from cooperation between local, state, and federal law enforcement, demonstrates our commitment to keeping some of our most vulnerable citizens safe from sex offenders who prey on children.”
Prosecutor Sanford stated, "The Sanilac County Prosecutor's Office greatly appreciates the efforts of all of the law enforcement officers who were involved in the investigation in bringing the defendant to justice."
Gratton also was sentenced in the 24th Judicial Circuit Court to 90 to 180 months in prison for a second-degree criminal sexual conduct charge, concurrent to the federal sentence, the assault of a minor that led to the discovery of this offense.
The case was the result of a joint investigation by the Sanilac County Sheriff’s Department, the Michigan State Police, and the Northeast Michigan Trafficking and Exploitation Crimes Task Force (“NEMTEC”) of the Federal Bureau of Investigation, as well as a cooperative effort between the Sanilac County Prosecutor’s Office and the United States Attorney’s Office.