Eastern District of Michigan
Press releases recorded for this federal judicial district.
Former Assistant Superintendent and Vendor Sentenced on Bribery ChargesRead the Press Release
A former Detroit Public Schools (DPS) vendor and former Assistant Superintendent of Specialized Student Services were sentenced today for their roles in an illegal bribery and kickback scheme, announced U.S. Attorney Barbara L. McQuade.
Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Manny Muriel, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.
Norman Shy, 74, of Franklin received a sentence of 60 months and Clara Flowers, 61, of Detroit received a sentence of 36 months. Both were sentenced before U.S. District Judge Victoria Roberts. Both pleaded guilty in May to charges of conspiracy to defraud the United States and tax evasion.
According to court records, Shy, the owner of Allstate Sales, a DPS vendor of school supplies, conspired with 13 school officials to submit fraudulent invoices, causing DPS to pay Shy for goods that were never delivered. Invoiced supplies included auditorium chairs, supplemental teaching materials and raised line paper. In exchange, Shy paid bribes and kickbacks to the school officials, using a portion of the payments he received from DPS from the fraudulent invoices. The scheme began in 2002 and continued until January 2014.
DPS principals had the primary authority for selecting vendors from a list approved by DPS and for certifying that invoiced goods were received.
In return for selecting Shy as a vendor and approving fraudulent invoices, Flowers accepted bribes and kickbacks in various forms, including prepaid gift cards and checks payable directly to her travel agency business and contractors who performed work on her home. In total, Shy paid Flower’s approximately $324,785.
The total amount of bribes and kickbacks that Shy paid to the 13 school officials was approximately $908,518. In exchange, Shy received approximately $2.7 million from DPS based on payments for fraudulent invoices.
“We hope that these sentences will deter anyone who thinks that they can take advantage of a large public institution like the Detroit Public Schools,” McQuade said. “We will hold accountable anyone who steals funds intended for our school children. If there is a message here, it is that someone is watching, you will get caught and you will go to prison.”
“Today’s sentencing should serve as a impactful reminder that the FBI will not stand by idly when those in the field of education violate the public’s trust for their own personal gain. The misapplication of already scarce public funds is not only illegal, but an insult to those dedicated educators working every day to make a better future for our children” said David P. Gelios, Special Agent in Charge, FBI Detroit Division
Three Plead Guilty to Tampering with Witness by Physical ForceRead the Press Release
Three Flint residents pleaded guilty to tampering with a witness by physical force to prevent the witness from testifying in a federal criminal case, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by David P. Gelios, Special Agent in Charge of the Federal Bureau of Investigation.
Pleading guilty were Christopher Blackwell, 27, Lawrence Christopher Davis, 22, and Lezlye Taylor, 22. The defendants entered their pleas before U.S. District Judge Terrence G. Berg in Flint.
According to court documents, in July 2014, Blackwell received a telephone call from an incarcerated man facing trial who stated that witnesses were cooperating against him. During their telephone conversation, Blackwell promised to prevent one of the witnesses from cooperating. On July 26, 2014, Taylor met up with the witness and informed Blackwell of the witness’s location as the two were leaving a building together. When the victim left the building, Blackwell and Davis shot him in both legs. Sixteen days after the shooting, law enforcement officers recovered one of the firearms used to shoot at the victim when Davis discarded it from his vehicle.
“Intimidation and harm to witnesses contribute to the ‘no snitch’ philosophy, which prevents people from reporting crimes,” McQuade said. “We will do all we can to protect witnesses in criminal cases, including prosecuting anyone who attempts to harm a witness.”
“Attempting to obstruct justice through threats or actual violence, especially when a witness to a crime is involved, is a very serious offense” said David P. Gelios, Special Agent in Charge, FBI Detroit Division, “The FBI places a premium on ensuring the personal safety and protection of all witnesses of crimes.”
Sentencing for Davis is scheduled for December 1. Sentencing for Taylor is set for December 15 and sentencing for Blackwell is scheduled for January 19, 2017. Each face a statutory maximum penalty of 30 years in prison.
The case was investigated by special agents of the FBI. The case is being prosecuted by an Assistant United States Attorney from the Flint Branch of the United States Attorney’s Office.
Detroit-Area Drug Trafficking Organization Charged for Overdose Deaths from FentanylRead the Press Release
A superseding indictment was returned yesterday adding new criminal charges against 13 Detroit-area men accused of conspiring to distribute heroin, crack cocaine and other drugs, U.S. Attorney Barbara L. McQuade announced today. Nine of the defendants were charged with distributing fentanyl and heroin resulting in overdose death and serious bodily injury.
Joining McQuade in the announcement were Special Agent in Charge Timothy J. Plancon, Drug Enforcement Administration, Detroit Division, and Police Commissioner Jere Green, Warren Police Department and Mayor James R. Fouts, City of Warren.
The drug-trafficking organization, known as the ”Polo” organization, became the focus of investigation beginning in March, when heroin distributed by the group was connected to a spike in overdose deaths.
Charged were Demarco Tempo, 27 (also known as “Polo”) of Warren; Haratio Heard, 25; Juwan Allen, 22; Darius Gordon, 25; Alvin Coates, 21; Javon Brown, 25; Greg Howard, 20; Dennis Jones, 21; Amacio Alexander, 39; Marcus Gilbert, 22; Kenneth Sadler, 28; Darreyl Coneal, 28; and Randy Stewart, 25, all from Detroit. All were charged with conspiracy to distribute and to possess with intent to distribute controlled substances, including heroin, crack cocaine, powder cocaine and fentanyl. Defendants Tempo, Heard, Allen, Gordon, Coates, Brown, Howard, Jones and Gilbert were charged in the conspiracy with distribution of heroin and fentanyl where death and serious bodily harm occurred to multiple victims. Some of the defendants were also charged with substantive counts of drug distribution. Tempo was charged with distribution of heroin and fentanyl resulting in the death of one victim. Tempo, Gordon and Coats were also charged with distributions of heroin and fentanyl resulting in serious bodily injury to three other victims. The law defines serious bodily injury as an injury that involves a substantial risk of death. The charges of distribution causing death or serious bodily injury, or the conspiracy to commit the offence each carry a mandatory minimum penalty of 20 years’ imprisonment.
Tempo, Heard, Allen, Gordon, Brown, Howard, Jones, and Alexander were also charged with conspiring to possess firearms in furtherance of the drug-trafficking conspiracy. Sadler was charged with being a felon in possession of a firearm.
"Overdose deaths from heroin and fentanyl are becoming a national epidemic, including here in Michigan, as people addicted to prescription pills become desperate to feed their addictions," McQuade said. "Law enforcement agencies are banding together to prosecute traffickers who are exploiting these addictions and risking lives for profit."
DEA Special Agent in Charge Plancon said, “It is a priority of DEA to identify and investigate those who distribute drugs that result in overdose and death. The charges announced today should make it clear to all drug dealers that they will face consequences, for the harm that they inflict on the user and on society. The Warren Police Department deserves significant credit for devoting the time and effort needed to successfully investigate and bring these individuals to prosecution.
Mayor Fouts stated, “I would like to highly commend both the Warren Police Special Investigations Unit and the DEA for their hard work and dedication in this investigation which led to the grand jury indictment charging the leader of a drug trafficking organization with the death and overdoses of four victims. This initiative was started by the Warren Police from my request to Commissioner Jere Green to institute a massive drug bust against this drug trafficking organization following the OD deaths of seven Warren residents earlier this year.”
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This investigation was led by the Warren Police Department’s Special Investigations Division, in partnership with the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Benjamin Coats.
Justice Department Settles Housing Discrimination Lawsuit Involving Seven Michigan Apartment ComplexesRead the Press Release
The Justice Department and the U.S. Attorneys’ Offices of the Eastern and Western Districts of Michigan today announced an agreement with the owners and operators of seven Michigan apartment complexes to resolve allegations that they discriminated against families with children in violation of the Fair Housing Act.
The lawsuit was filed on Nov. 19, 2015, in the U.S. District Court for the Eastern District of Michigan. The lawsuit alleged that the defendants, including the rental manager Sudi Hopper, as well as the corporate entities that own the complexes, Parkside East Inc., Holt Manor Inc. and Kelly Manor Inc., discriminated against families with children by prohibiting them from renting one-bedroom units in the defendants’ apartment complexes. The allegations were based on evidence generated by the Fair Housing Center of Southeastern Michigan, which had testers posing as prospective residents contact the defendants and ask to rent one-bedroom apartments. Testers who said that they wanted to rent an apartment with their child were told that children were not allowed in one-bedroom units. The Fair Housing Center filed a lawsuit, which was resolved separately.
Under the terms of the consent decree, which still must be approved by the court, the defendants will establish a settlement fund of $20,000 to compensate victims of their discriminatory practices. The defendants will also pay $5,000 in civil penalties to the United States. In addition, the defendants will eliminate the restrictions on children that they previously imposed at the seven complexes that they own and operate. Those complexes are: Parkside East Apartments in East Lansing, Michigan; Holt Manor Apartments and C and H Apartments in Holt, Michigan; Kelly Manor Apartments in Owosso, Michigan; Camelot Apartments in Lansing, Michigan; Pine Cove Apartments in DeWitt, Michigan; and Park Place Apartments in Williamston, Michigan. The agreement also requires that defendants inform tenants of their new nondiscriminatory policies and provide training on the Fair Housing Act to their staff and agents.
“Housing provides a critical foundation for economic security and opportunity,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Families with children deserve access to housing that meets their needs without facing unlawful discrimination. The Justice Department will continue to enforce the Fair Housing Act to ensure that families with children have the same rights to housing within their price range as people without children.”
“The law prohibits landlords from refusing to rent to people with children,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “We commend the defendants in this case for agreeing to change their policies and pay damages to victims for their past discriminatory practices. This settlement will further the goal of the Fair Housing Act to protect families from discrimination because they have children.”
“Adequate housing is a fundamental need for families and equal access to that housing must be protected,” said U.S. Attorney Patrick A. Miles Jr. of the Western District of Michigan. “Our ongoing actions to enforce the Fair Housing Act provide that protection.”
This case was handled jointly by the Civil Rights Division’s Housing and Civil Enforcement Section and the U.S. Attorneys’ Offices of the Eastern and Western Districts of Michigan.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777. Residents of the Eastern District of Michigan can also contact the U.S. Attorney’s Office of the Eastern District of Michigan’s Civil Rights Hotline at 313-226-9151 or [email protected]. Residents of the Western District of Michigan can contact the U.S. Attorney’s Office of the Western District of Michigan’s Civil Rights Hotline at 616-808-2004 or [email protected].
Parkside East Consent Decree
United States Attorney's Office Assembles a Team of Specialists to Assist Former Patients/Family Members of Dr. Farid FataRead the Press Release
United States Attorney Barbara McQuade today announced that her office has put together a team of specialists to assist former patients and family members of Dr. Farid Fata in completing the restitution claim form. Fata was sentenced to 45 years in federal prison for providing medically unnecessary chemotherapy treatments to patients. The government has seized approximately $11.9 million and is encouraging and reminding victims to file claims before the filing deadline of October 5, 2016.
The U.S. Attorney’s Office has been working with the Crimes Services Commission for the State of Michigan and a team of Certified Public Accountants (CPAs) and CPA organizations to offer assistance to victims at no charge. The assistance will be provided starting on September 6, 2016 from 9:00 am – 5:00 pm, Monday-Friday and will take place at Common Ground, located at 1200 North Telegraph Road, Building 32 East, Pontiac, Michigan 48341. While walk-ins will be accepted, victims are encouraged to schedule an appointment and can do so by calling the current Fata claims toll free number at 1-877-202-3282. The toll free line will begin accepting calls to schedule appointments on Thursday, September 1 at 3:00pm. Depending on the complexity of the claim victims will be assisted by either a victim advocate specialist or a CPA or both.
The U.S. Attorney’s Office would like to thank Director James McCurtis and Program Specialist Leslie O’Reilly of the Crimes Services Commission of Michigan, Mark Davidoff, CPA, Michigan managing partner Deloitte LLC, Marshall Hunt, Director of Tax Policy and Advocacy at the Accounting Aid Society and Jean Jernigan, Vice President of Business Development at the Michigan Association of CPAs for their assistance in this effort.
In addition, we have prepared two information sheets to help claimants understand how to complete the Claim Forms as efficiently as possible and to make the filing process easier. Those can be accessed through the website www.fataclaims.com on the homepage. The two documents are:
- How to Prove What Victim Paid or Owed
- Listing Multiple Expenses
If you have questions about these documents, please call the phone staff at 1-877-202-3282. You can also view and download copies of these documents on the website at www.fataclaims.com.
We are also reminding victims that they can file claims for their out-of-pocket physical and mental health remedial treatments needed as a result of the treatment they received from Fata. The last date you can be reimbursed for remedial treatment is September 6, 2016. We are encouraging physicians who are currently treating former patients of Fata to sign the necessary forms regarding remediation in an effort to help victims pay for the cost of their treatment.
United States Attorney McQuade stated, “We recognize that the process of filling out a restitution claim form can be an extremely difficult process both emotionally and physically for victims and their families. While no amount of money can restore what has been taken away by the actions of Fata, we hope that with the added assistance we can attempt to give back as much of the seized funds as we can.”
U.S. Attorneys Richard S. Hartunian and Barbara L. McQuade Appointed to Lead the Attorney General's Advisory CommitteeRead the Press Release
Attorney General Loretta E. Lynch announced today the appointment of U.S. Attorney Richard S. Hartunian for the Northern District of New York as chair of the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). Attorney General Lynch also appointed U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan to serve as vice chair. Both appointments are effective immediately.
“The Attorney General’s Advisory Committee plays an essential role in shaping the Justice Department’s policies, implementing its programs, and ensuring that equal justice and the rule of law are upheld throughout the United States,” said Attorney General Lynch. “As a former chair of the AGAC, I know firsthand the significant duties required of the committee’s leaders, and I am certain that U.S. Attorneys Richard Hartunian and Barbara McQuade are ready to assume the responsibility of chairing such an important and distinguished body. They are both seasoned prosecutors, exemplary law enforcement officers, and devoted public servants, and I look forward to benefitting from their long experience and wise counsel as we advance the department’s vital work in the months ahead. I congratulate them on their new posts, and I once again thank former U.S. Attorney John Walsh for his outstanding service as AGAC chair over the last 20 months.”
U.S. Attorney Hartunian has been the vice chair of the AGAC since January 2015. He was appointed to the AGAC in 2013 and has served as the co-chair of the Border and Immigration Subcommittee, as well as a member of the subcommittees focused on Native American issues, Health Care Fraud and Environmental Crimes. He has served as U.S. Attorney for the Northern District of New York since January of 2010. Before that, he had been an Assistant U.S. Attorney there since 1997 and the district’s Narcotics Chief and Organized Crime Drug Enforcement Task Force Coordinator since 2006.
U.S. Attorney Hartunian is a 1983 cum laude graduate of Georgetown University and a 1986 graduate of the Albany Law School of Union University. He was engaged in the private practice of law in Albany from 1987 to 1990. He served as an Assistant District Attorney in Albany County from 1990 to 1997, where his work on narcotics and violent crime cases led to his designation as a Special Assistant U.S. Attorney in 1994.
In May of 2010, U.S. Attorney Hartunian was honored by the Armenian Bar Association as the first U.S. Attorney of Armenian descent.
U.S. Attorney McQuade was appointed to the AGAC in April 2013 and has previously served as co-chair of the Terrorism and National Security Subcommittee. She also served on subcommittees addressing civil rights and border security. She became the first woman to serve as U.S. Attorney for the Eastern District of Michigan when she took office in January of 2010. She was an Assistant U.S. Attorney in Detroit, Michigan, for 12 years, including service as Deputy Chief of the National Security Unit.
U.S. Attorney McQuade is a 1987 graduate of the University of Michigan and a 1991 graduate of the University of Michigan Law School. Before becoming a federal prosecutor, she practiced law in a Detroit firm and served as a law clerk to a U.S. District Judge. From 2003 to 2009, U.S. Attorney McQuade was as an adjunct law professor at the University of Detroit Mercy School of Law.
While U.S. Attorney McQuade replaces U.S. Attorney Hartunian as vice chair, U.S. Attorney Hartunian replaces former U.S. Attorney John Walsh for the District of Colorado as chair.
The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the Attorney General on policy, management and operational issues impacting the offices of the U.S. Attorneys.
Justice Department Reaches Settlement with Ecorse, MI Regarding Polling Place Access for People with DisabilitiesRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Michigan today announced a settlement under the Americans with Disabilities Act (ADA) with the city of Ecorse, Michigan, to ensure accessibility for individuals with disabilities at all of the city’s polling places. The case was commenced under the Justice Department’s compliance review authority.
Under the terms of the settlement, the city of Ecorse will make temporary and permanent changes to all of its polling places to make them accessible on Election Day before the November 2016 election. The settlement also requires that accessibility based on ADA standards will be a major criterion in the city’s selection of future polling places and so going forward, the city of Ecorse will select only polling place locations that are accessible on Election Day. The city of Ecorse will also provide training to poll workers.
“The ADA requires that people with disabilities have an equal opportunity to cast their votes at their neighborhood polling place. We are pleased that this agreement will ensure that the citizens of Ecorse can take an active part in our democracy.” said Barbara L. McQuade, U.S. Attorney for the Eastern District of Michigan.
Title II of the ADA prohibits public entities, such as the city of Ecorse, from discriminating against people with disabilities in their programs, services and activities. With respect to polling places, public entities are required to select and use polling places that are accessible. More information about this settlement and the ADA is available at the Justice Department’s toll-free ADA Information line at (800) 514-0301 or (800) 514-0383 (TTY) and via the ADA website at http://www.ada.gov or the U.S. Attorney’s civil rights hotline at 313-226-9151.
Former Monroe County Resident Sentenced to More Than 58 Years in Federal Prison for Repeated Sexual Exploitation of ChildrenRead the Press Release
A Monroe County man was sentenced today to more than 58 years in prison for producing child pornography documenting his own sexual assaults of young children, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division.
Jason Wayne Soper, 34, was sentenced by U.S. District Judge Gerald E. Rosen.
According to court records, Soper produced videos and images of his own sexual assaults of several children, ages three to seven years old. Soper traded the images and videos he produced to other individuals over the Internet in exchange for pornographic images depicting infants and toddlers. Soper distributed some of the images to an undercover FBI agent, which led to his identification, arrest and the rescue of multiple children. Soper admitted to sexually assaulting several other children, and to having committed sexual assault crimes against two of the children for most of their lives.
"Child predators who create child pornography victimize children twice, first by sexually assaulting them and again by sharing it with others on the Internet." McQuade said. "We are grateful for the undercover work by the FBI in this case that led to the rescue of young children."
"The depravity of this case shocks the conscience, and exemplifies the horrific and unspeakable crimes committed against the most vulnerable members in society, our youth” said David P. Gelios, Special Agent in Charge, FBI Detroit Division. “The message should be clear: Protecting our children from predators is a top priority of the FBI. We are committed to identifying those, like Soper, who sexually exploit children and working with the U.S. Attorney’s Office to seek the prosecution of those individuals to the fullest extent of the law.”
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Kevin M. Mulcahy.
Dearborn Man Pleads Guilty to Lying About Travel to Fight for HezballahRead the Press Release
A Dearborn, Michigan, man pleaded guilty to making false statements to federal agents involving terrorism, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Mohammad Hassan Hamdan, 24, admitted at his plea hearing before U.S. District Judge Gerald E. Rosen that he knowingly lied to federal agents when he was arrested, prior to boarding his flight, at Detroit Metropolitan Airport on March 16, 2014. Hamdan told federal agents that he was going to Lebanon “to get his teeth fixed.” Hamdan also admitted that he had told an FBI confidential source that he was going to Lebanon to join Hezbollah, a designated foreign terrorist organization, so that he could fight with Hezbollah in Syria.
Evidence presented at a hearing revealed that prior to leaving to go to Lebanon, Hamdan had packed up all his possessions, gave his car to a family member and sold his house.
“It is illegal to lie to federal agents because false statements undermine their ability to investigate crime,” McQuade said. “Here, Mr. Hamdan lied to cover up his intent to travel overseas to fight with Hezballah, a group that have been designated by the U.S. government as a terrorist organization.”
“This case highlights the significance of the investigative work being done by the FBI’s Joint Terrorism Task Force in Detroit,” stated David P. Gelios, Special Agent in Charge of the FBI Detroit Field Office. “As evidenced by his own admissions, Mohammad Hassan Hamdan took steps to travel to Lebanon to join the fight on behalf of Hezbollah in Syria. This investigation demonstrates the real threat of individuals residing in the United States who want to travel to Syria to fight on behalf of Hezbollah, a designated terrorist organization and threat to our national security.”
Hamdan is scheduled to be sentenced on November 14, 2016 at 2:00 p.m.
The case was investigated by special agents from the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ronald Waterstreet.
Canadian Resident Sentenced in Sextortion CaseRead the Press Release
An Ontario man was sentenced today to 30 years in federal prison after having pleaded guilty to charges related to the sexual exploitation of two minor girls, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Field Office, and Chief Michael Patton of the West Bloomfield Police Department.
According to court records, from October through December 2013, Antonio P. Fontana, 59, coerced and enticed a 15-year-old girl (“Victim 1”) residing in the Eastern District of Michigan into performing various sexual acts for him in front of an Internet webcam on an almost daily basis. Fontana first began communicating with the victim on an Internet website, where he was posing as a 16-year-old boy. Fontana recorded many, if not all, of the sexual acts he forced Victim 1 to perform. Fontana threatened to post the recordings of Victim 1 on the Internet and to send them to her friends and family if she did not continue to perform sexual acts for him. When Victim 1 ultimately attempted to stop speaking to Fontana in late December 2013, Fontana continued to communicate with Victim 1 and her mother in an attempt to coerce Victim 1 into continuing to communicate. At various times in January and February, 2014, Fontana followed through with his threats, and sent sexually explicit images of Victim 1 to Victim 1’s email contacts and her mother.
Fontana committed similar conduct from November to December 2014 with a second minor victim (“Victim 2”), a 14-year-old girl in the Eastern District of Michigan. Further investigation revealed that Fontana had similarly exploited children from all over the world, including several in the United States, Finland and England
“This defendant used the internet to exploit and extort innocent children in the most humiliating way. The bravery of the child in this case to come forward and report the perpetrator's conduct certainly prevented other children from being exploited this way.”
"Mr. Fontana hid behind the anonymity of the Internet to target and sexually exploit children in the most reprehensible of ways," stated David P. Gelios, Special Agent in Charge of the FBI Detroit Field Office. "This investigation proves the reach of the FBI, along with its local, state and federal partners, is a long one; in this case even across international borders. The protection of our children from depraved predators and online threats will remain a priority as long as there are those who would sexually exploit our children."
“Predators that target children via the Internet are not limited by state or national jurisdictional boundaries,” said Chief Patton. “The entire West Bloomfield community is thankful for the efforts and cooperation of the local, federal, and international law enforcement partners which led to this indictment.”
Fontana was extradited to the United States from Canada last year.
McQuade praised the work of the Special Agents of the FBI, the officers from the West Bloomfield Police Department and the detectives from the major crime unit of the Durham Regional Police Service, Ontario, Canada. The case is being prosecuted by Assistant United States Attorneys Douglas Salzenstein and Matthew Roth.
Vice Lords Leader Sentenced to 20 Years in Prison for Gang-Related ShootingRead the Press Release
A leader of the Vice Lords street gang was sentenced today to 20 years in prison for attempted murder in aid of racketeering in connection with the May 7, 2015, shooting of a family of four with an AK-47 in Detroit.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division Office, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Chief James Craig of the Detroit Police Department made the announcements.
Antonio Clark, aka Cheeto, 26, of Detroit, pleaded guilty on Jan. 27, 2016, to two counts of attempted murder in aid of racketeering and use and carry of a firearm during and in relation to a crime of violence.
According to Clark’s plea agreement, the Vice Lords is a national gang engaged in a variety of crimes, including murder, robbery, narcotics trafficking and witness intimidation. The Vice Lords’ leaders are located in both Chicago and Detroit, and the gang is broken down into various “sets,” “decks,” or “branches,” including the Detroit-based Traveling Vice Lords, Insane Vice Lords, Imperial Insane Vice Lords, Conservative Vice Lords and Mafia Insane Vice Lords. Clark admitted that members who seek to leave the gang oftentimes endure a physical beating, known as a “beat out,” by multiple Vice Lords members, or are targeted for killing, known as a “green light.”
Clark admitted that in May 2015, he and other members of the Vice Lords were searching for two brothers who had left or attempted to leave the gang. According to the plea agreement and sentencing documents, Clark and at least eight other Vice Lords met on May 7, 2015, to discuss a plan of action and Clark brought a loaded AK-47 to the meeting. Clark admitted that later that day, he and other Vice Lords traveled to the intended victims’ house in broad daylight. According to sentencing documents, Clark fired the AK-47 23 times, hitting the brothers, their mother and a 15-year-old sister. In addition, sentencing documents reflect that a five-year-old boy was present but not shot. All of the victims survived the shooting.
Seven other Vice Lords defendants also have pleaded guilty to charges relating to the shooting, four of whom have been sentenced: Aramis Wilson, 25, of Detroit, was sentenced to 150 months in prison; Dion Robinson, 38, of Detroit, was sentenced to 121 months in prison; Jonathan Kinchen, 23, of Detroit, was sentenced to 120 months in prison; and Kojuan Lee, 20, of Detroit, was sentenced to 97 months in prison.
The charges and convictions related to the May 7, 2015, shooting are just one component of the federal government’s prosecution of the Vice Lords street gang, which has led to the arrests and convictions of dozens of Vice Lords leaders and members over the last few years. In two trials during March and May 2015, juries convicted eight leaders and members of the Phantom Outlaw Motorcycle Club, many of whom were also leaders and members of the Vice Lords, for various crimes, including a mass-murder plot against a rival organization and the shooting of a member of another rival organization. Among those convicted was Antonio Johnson, aka MT and Mister Tony, the National President of the Phantoms and the Three-Star General over all of the Vice Lords in Michigan. On Sept. 8, 2015, Johnson was sentenced to 35 years in prison for racketeering conspiracy, murder conspiracy in aid of racketeering, assault with a dangerous weapon in aid of racketeering, aiding and abetting the use and carry of firearms during and in relation to a crime of violence and felon in possession of a firearm.
The arrests and convictions in this case are, in part, the result of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. Through the lead efforts of the Comprehensive Violence Reduction Partnership Task Force, which consists of representatives of the ATF, Detroit Police Department, Michigan State Police, Michigan Department of Corrections and FBI, law enforcement authorities linked various acts of violence in Detroit to the Vice Lords street gang, and identified the leaders and key members of the gang, who now have been held accountable.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The ATF, FBI and Detroit Police Department are investigating the case. Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Mark Bilkovic of the Eastern District of Michigan are prosecuting the case.
Justice Department Files Lawsuit Against Credit Union for Illegally Repossessing Servicemembers’ CarsRead the Press Release
The Justice Department filed a lawsuit today in the Eastern District of Michigan to recover damages from the COPOCO Community Credit Union, alleging that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing protected servicemembers’ motor vehicles without obtaining the necessary court orders.
The SCRA protects the rights of servicemembers on active duty by suspending or modifying certain civil obligations. The law prohibits repossessing a motor vehicle from a servicemember during military service without a court order if the individual made a deposit or installment payment on the loan before entering military service. The department’s complaint alleges that COPOCO’s vehicle repossession procedures did not include any process to determine customers’ military status – such as checking the Department of Defense’s database – prior to conducting repossessions without court orders. The complaint also alleges that COPOCO illegally repossessed U.S. Army Private First Class Christian Carriveau’s car, along with his two-year-old daughter’s car seat, out of his driveway in Lacey, Washington, near Joint Base Lewis-McChord. His wife, Alyssa Carriveau, initially believed that the car had been stolen, but she subsequently learned that it had been repossessed. Private First Class Carriveau was away at military training at the time and Alyssa Carriveau was not able to get to work without the vehicle.
“No servicemember should be penalized for honorably serving our country,” said Principal Deputy Associate Attorney General Bill Baer. “COPOCO Community Credit Union’s alleged misconduct in repossessing vehicles without the required court order is both wrong and illegal. The Justice Department continues to ensure that we are doing all we can to protect and assist servicemembers, veterans and their families from unlawful conduct by creditors.”
“The Justice Department works tirelessly to protect the rights of those who answer our nation’s call to duty to defend our freedom,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue to vigorously pursue lenders who fail to take the simple steps necessary to determine, before repossessing a car, whether it belongs to a servicemember.”
“This law was designed to ease the legal and financial burdens for servicemembers and their families when facing the demands of active duty,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “We owe it to all servicemembers to vigorously enforce these laws to protect them while they are serving their country.”
The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service. It requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember. By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, COPOCO prevented court review of whether such repossessions should be delayed or adjusted in light of military service.
In addition to monetary damages for affected servicemembers, the SCRA provides for civil monetary penalties of up to $60,000 for the first offense and $120,000 for each subsequent offense. The department will also seek changes in how COPOCO conducts future repossessions.
COPOCO Community Credit Union is based in Bay City, Michigan.
Servicemembers and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php. Additional information about the department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
COPOCO Complaint
Justice Department Files Lawsuit Against Credit Union for Illegally Repossessing Servicemembers’ CarsRead the Press Release
The Department of Justice Civil Rights Division and the U.S. Attorney's Office for the Eastern District of Michigan filed a lawsuit today to recover damages from the COPOCO Community Credit Union, alleging that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing protected servicemembers’ motor vehicles without obtaining the necessary court orders.
The SCRA protects the rights of servicemembers on active duty by suspending or modifying certain civil obligations. The law prohibits repossessing a motor vehicle from a servicemember during military service without a court order if the individual made a deposit or installment payment on the loan before entering military service. The department’s complaint alleges that COPOCO’s vehicle repossession procedures did not include any process to determine customers’ military status – such as checking the Department of Defense’s database – prior to conducting repossessions without court orders. The complaint also alleges that COPOCO illegally repossessed U.S. Army Private First Class Christian Carriveau’s car, along with his two-year-old daughter’s car seat, out of his driveway in Lacey, Washington, near Joint Base Lewis-McChord. His wife, Alyssa Carriveau, initially believed that the car had been stolen, but she subsequently learned that it had been repossessed. Private First Class Carriveau was away at military training at the time and Alyssa Carriveau was not able to get to work without the vehicle.
"No servicemember should be penalized for honorably serving our country," said Principal Deputy Associate Attorney General Bill Baer. "COPOCO Community Credit Union’s alleged misconduct in repossessing vehicles without the required court order is both wrong and illegal. The Justice Department continues to ensure that we are doing all we can to protect and assist servicemembers, veterans and their families from unlawful conduct by creditors."
"The Justice Department works tirelessly to protect the rights of those who answer our nation’s call to duty to defend our freedom," said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. "We will continue to vigorously pursue lenders who fail to take the simple steps necessary to determine, before repossessing a car, whether it belongs to a servicemember."
"This law was designed to ease the legal and financial burdens for servicemembers and their families when facing the demands of active duty," said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. "We owe it to all servicemembers to vigorously enforce these laws to protect them while they are serving their country."
The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service. It requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember. By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, COPOCO prevented court review of whether such repossessions should be delayed or adjusted in light of military service.
In addition to monetary damages for affected servicemembers, the SCRA provides for civil monetary penalties of up to $60,000 for the first offense and $120,000 for each subsequent offense. The department will also seek changes in how COPOCO conducts future repossessions.
COPOCO Community Credit Union is based in Bay City, Michigan.
Servicemembers and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php. Additional information about the department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Detroit Police Lieutenant, Officer Convicted of Conspiracy to Obtain Property by ExtortionRead the Press Release
A Detroit Police Lieutenant and crew chief from the now-disbanded Narcotics Unit of the Detroit Police Department were convicted today by a federal jury in Detroit on charges of robbing drug dealers and stealing drugs and money obtained in police searches, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement were Special Agent in Charge David P. Gelios of the Federal Bureau of Investigation’s Detroit Division, Chief James E. Craig of the Detroit Police Department, Manny Muriel, Special Agent in Charge of the Detroit office of the Internal Revenue Service – Criminal Investigation and Special Agent in Charge Timothy Plancon, Drug Enforcement Administration, Detroit Field Division.
The five-week trial was conducted before U.S. District Judge Stephen J. Murphy.
Defendants Lt. David Hansberry, 35, and Officer Bryan Watson, 47, were each convicted on charges of conspiracy to interfere with commerce by extortion and robbery. They were acquitted on the remaining counts of the indictment. A third defendant, Kevlin Omar Brown, 46, was acquitted on one count of interference with commerce by robbery and extortion.
The conspiracy conviction carries a potential sentence of up to twenty years imprisonment and a $250,000 fine.
According to the evidence presented at trial, the defendants arranged drug transactions with civilians, including confidential sources, so that they could rob and extort them. The defendants allegedly carried out traffic stops and fake arrests, and then stole drugs, money and personal property from their victims. Hansberry and Watson used their status as law enforcement officers to assist in their scheme, by driving police vehicles, activating lights on their police vehicles, wearing police-issued attire, displaying official badges and carrying firearms. Hansberry and Watson also identified themselves as police officers to coerce their victims into complying with their demands and to encourage their victims to flee, leaving behind illegal drugs, money and personal property.
In addition, the evidence showed that Hansberry, who was a sergeant at the time, and Watson failed to log into evidence money and drugs seized during searches of homes. Instead, they split the proceeds and arranged for the sale of the drugs, sharing the proceeds generated by the sales. In one instance in July 2010, Hansberry and Watson participated in a drug seizure that netted more than $3 million, the largest cash seizure by the Detroit Police Department at that time. Only $2.2 million, however, was placed in the evidence room.
“These defendants tarnished the badge that is worn with honor by their fellow officers, using their power as police officers to steal money and drugs from criminals who have no recourse,” McQuade said. “In addition to betraying their trust to uphold the law, these officers also put back out onto the streets the drugs that they had seized so that they could split the proceeds. Their greed caused them to poison our neighborhoods with drugs and to diminish public trust in police.”
"Today's guilty verdict demonstrates the resolve of the FBI-led Public Corruption Task Force, in partnership with the Detroit Police Department, to aggressively investigate law enforcement officers who abuse their positions of public trust," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "Despite this isolated betrayal of trust, today's convictions should not tarnish the outstanding work conducted every day by the Detroit Police Department to combat crime in this great city,”
“The vast majority of the men and women of the Detroit Police Department are honest and hard-working, but these defendants betrayed their oath and their fellow officers,” said Chief Craig. “We are committed to the highest standards of integrity, and we will remove any officers who do not live up to those high standards.”
The case was investigated by the by the FBI Detroit Area Public Corruption Task Force, in collaboration with the Detroit Police Department’s Office of Internal Affairs and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorneys Sheldon Light and J. Michael Buckley.
Man Facing Al-Qaeda Terrorism Charges Indicted for Plotting to Murder Federal Judge Presiding over His CaseRead the Press Release
A Toledo, Ohio, grand jury returned a three-count indictment against Yahya Farooq Mohammad today, charging him with soliciting the murder of a federal judge, announced U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan.
U.S. Attorney McQuade was joined in the announcement by Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Field Division and U.S. Marshal Peter J. Elliott of the Northern District of Ohio.
Mohammad, 37, from the United Arab Emirates, was charged with attempted first degree murder of a federal officer, solicitation to commit a crime of violence and use of interstate commerce facilities in commission of murder for hire.
Mohammad was indicted last year on charges of conspiring with three other men to travel to Yemen to provide thousands of dollars to Anwar Al-Awlaki in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world. That case remains pending and is assigned to U.S. District Judge Jack Zouhary of the Northern District of Ohio.
In the most recent charges, Mohammad is accused of soliciting someone to kidnap and murder Judge Zouhary.
On April 8, Mohammad allegedly told another inmate in the Lucas County Corrections Center in Toledo that he wanted Zouhary kidnapped and murder. That inmate then introduced Mohammad to an undercover FBI employee, according to the indictment.
The indictment alleges that Mohammad told the inmate that he was willing to pay $15,000 to have Zouhary killed. Mohammad also allegedly told the undercover employee that he could send a down payment through a mail courier or that the undercover could meet Mohammad’s wife in Chicago to pick up the money. When asked when he wanted the murder committed, Mohammad stated: “The sooner would be good, you know,” according to the indictment.
On May 5, Mohammad’s wife, identified in the indictment as N.T., met the undercover agent at a post office in Bolingbrook, Illinois, and provided $1,000 in cash inside a white envelope, according to the indictment.
On May 11, Mohammad informed the inmate that the rest of the money for the murder was coming from Dubai to Texas to Chicago to N.T., and then to the undercover agent, according to the indictment.
According to the indictment, on May 16, the undercover agent and N.T. met, and the undercover agent showed N.T. a photograph that purported to be of Zouhary’s dead body. The undercover agent told N.T. he needed the rest of the money owed to him. N.T. said she would contact Mohammad and then she would contact the undercover agent, according to the indictment.
“According to the charges in the indictment, this defendant not only attempted to have a federal judge murdered, but he did so to obstruct justice in a terrorism case against him,” said U.S. Attorney McQuade. “This prosecution seeks to hold the defendant accountable for attempting to victimize the judge and for trying to undermine our criminal justice system.”
“Conspiring to have a judge killed is not the way to avoid being prosecuted - now Mohammad will be held accountable for additional serious federal charges,” said Special Agent in Charge Anthony. “The FBI will continue to work with our partners to ensure the safety of those that uphold the rule of law. “
“Protecting the federal judiciary is our highest priority,” said U.S. Marshal Elliott. “This is an example where we were able to work with our law enforcement partners to protect a judge and bring charges against a dangerous individual.”
The case is prosecuted by Assistant U.S. Attorneys Michael Freeman and Matthew Shepherd of the Northern District of Ohio following an investigation by the FBI. The U.S. Attorney for the Northern District of Ohio has recused herself from this case.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offenses and the characteristics of the violations. Counts one and two of the indictment carry a maximum statutory penalty of 20 years in prison and count three carries a statutory maximum penalty of 10 years in prison.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Detroit Public Schools Director of Grant Development Pleads Guilty to FraudRead the Press Release
The former Detroit Public Schools Director of Grant Development pleaded guilty today to federal program fraud, announced U.S. Attorney Barbara L. McQuade.
Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Pleading guilty today before United States District Judge Stephen J. Murphy was Carolyn StarkeyDarden, 69, of Detroit.
According to court records between 2005 and 2012, Carolyn StarkeyDarden, as president and/or agent of companies she established to provide supplemental educational services to eligible students in Michigan, obtained at least $1,275,000 from DPS through a scheme in which she submitted fraudulent invoices for payment to DPS for tutorial services that were never rendered to DPS students.
United States Attorney Barbara L. McQuade said, “We know that most school officials and teachers are honest, but we hope to deter fraud by holding accountable those who steal funds from our school children. It makes a difference when those who are tempted by greed know that someone is watching and there is a price to be paid.”
“Today’s guilty plea represents another step towards holding Ms. Starkey-Darden responsible for cheating Detroit Public Schools students out of valuable resources by fraudulently billing for her company’s services,” said David P. Gelios, Special Agent in Charge, FBI Detroit Division. “The message should be clear: Public funds allocated to educate our children must be utilized as intended. To those that would do otherwise, you will be held to account.”
StarkeyDarden faces up to 10 years in prison and fines of up to $250,000 on the charge of Federal Program Theft. Sentencing has been set for October 28, 2016 at 10 am..
This case was investigated by agents of the FBI. This case is being prosecuted by Assistant United States Attorney Dawn N. Ison.
The FBI Detroit Area Corruption Task Force (DACTF) is led by the FBI Detroit Field Office, and consists of Special Agents and law enforcement officers with the FBI Detroit; the Detroit Police Department; the Michigan State Police; the Michigan Attorney General’s Office; the Internal Revenue Service – Criminal Investigation Division; the U.S. Department of Housing and Urban Development–Office of Inspector General; the U.S. Environmental Protection Agency–Office of Inspector General; the U.S. Department of Transportation–Office of Inspector General; the U.S. Department of Homeland Security–Office of Inspector General; the U.S. Department of Education–Office of Inspector General; and the U.S. Department of Labor–Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
Detroit One Collaboration Arrests Gang Members for Shooting Involving Children on Detroit's East SideRead the Press Release
The collaboration of local, state and federal law enforcement under the Detroit One initiative has led to the indictment and arrests of two members of the 6 Mile Chedda Grove street gang for a shooting that involved children, United States Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement was Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division, and Chief James Craig, Detroit Police Department.
The indictment charges two defendants for their alleged involvement in a shooting on the afternoon of December 1, 2015, near a market on Hayes Street on Detroit’s east side. The indictment alleges that the two men fired gunshots at a car, killing the 21 year old driver and 13-year-old passenger. The indictment further alleges that the gunmen assaulted two other victims, ages 13 and 7 with their guns causing serious injury.
According to the indictment, “6 Mile Chedda Grove” is a street gang that operates primarily on the east side of Detroit. The indictment alleges that 6 Mile Chedda Grove is a violent organization responsible for murders, assaults, robberies and firearms and narcotics trafficking in the Detroit metropolitan area and in other states. The gang uses violence to retaliate against rivals, to intimidate witnesses and to advance members’ positions within the gang.
Under the Detroit One initiative, and through the lead efforts of the FBI’s Violent Gang Task Force and the Detroit Police Gang Intelligence Unit, law enforcement identified two violent members of this gang who have been charged by indictment in federal court. The Task Force includes representatives of the Detroit Police Department, Michigan Department of Corrections, and the U.S. Border Patrol.
The two defendants arrested today are:
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Edwin Lamont Mills, a/k/a “Edboy,” 26, of Detroit, charged with two counts each of murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering and using and carrying a firearm during a crime of violence causing death;
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Carlo Dajuan Wilson, a/k/a “Los,” 22, of Detroit, also charged with two counts each of murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering and using and carrying a firearm during a crime of violence causing death.
“This shooting, which occurred during broad daylight, killed a 13-year-old girl and 21-year-old man, and seriously injured two other children,” McQuade said. “The utter disregard for human life, including the lives of children, is simply unacceptable, and the Detroit One partners are committed to doing all that we can to end this epidemic of violence against our children.”
“These individuals had no regard for the welfare of these children. Today's arrests demonstrate the continuing commitment of law enforcement to work together to make the neighborhoods in which we raise our children safer," Special Agent in Charge Gelios said.
"The children of Detroit deserve a safe city in which they may grow and thrive," said Chief James E. Craig. "The Detroit One partnership is rooted in the belief that all citizens and neighborhoods deserve to be free of crime and our joint efforts to make that a reality will continue."
By working collaboratively, local, state and federal law enforcement investigate and prosecute individuals and groups initiating violence in Detroit. This indictment is the latest in a string of cases from the United States Attorney’s Office and Wayne County Prosecutor’s Office during the last three years involving violent street gangs in the city of Detroit. Detroit has seen a reduction in homicides every year since the Detroit One collaboration began in 2013.
The defendants will be making their initial appearances in federal court in Detroit this afternoon.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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U.S. Attorney's Office and Other Area Leaders Travel to Washington for National Summit on Preventing Youth ViolenceRead the Press Release
Representatives from the U.S. Attorney's Office and Detroit’s Youth Violence Prevention Initiative traveled today to Washington, D.C. to join with other cities from around the country to discuss strategies for reducing youth violence and gang activity at the Fifth National Summit on Preventing Youth Violence.
The National Forum on Youth Violence Prevention, established at the direction of President Obama in 2010, is a network of communities and federal agencies that work together and build local capacity to prevent and reduce youth violence. Boston, Camden, Chicago, Detroit, Memphis, Minneapolis, New Orleans, Philadelphia, Salinas, San Jose, Long Beach, Cleveland, Louisville, Seattle and Baltimore are the 15 cities participating in the Forum. This national convening will bring together over 600 participants representing more than 30 cities, including many communities that have accepted President Obama’s MY Brother's Keeper Community Challenge.
President Obama launched the My Brother’s Keeper initiative in February of 2014 to address persistent opportunity gaps faced by boys and young men of color and ensure that all young people can reach their full potential. Through this initiative, the Administration is joining with cities and towns, businesses, and foundations who are taking important steps to ensure that every child has a clear pathway to success from cradle to college and career. Learn more at: https://www.whitehouse.gov/my-brothers-keeper.
"In light of the intolerable level of violence committed against children and teens in Detroit, we need to explore all ideas for protecting their safety," McQuade said. The National Forum brings together the best practices from around the country, and we hope to bring home the best ways to give our kids the safe environment they deserve."
Justice Department Sues Michigan and Michigan Department of Corrections for Discriminating Against Female OfficersRead the Press Release
The Justice Department announced today that it has filed a lawsuit alleging that the state of Michigan and the Michigan Department of Corrections (MDOC) are engaged in a pattern or practice of sex-based employment discrimination against female correctional officers in violation of Title VII of the Civil Rights Act of 1964.
Title VII prohibits discrimination in employment on the basis of race, color, sex, national origin and religion. The lawsuit, filed today in the U.S. District Court for the Eastern District of Michigan, alleges that Michigan and MDOC discriminated against female employees assigned to MDOC’s Women’s Huron Valley Correctional Facility (Huron Valley) by implementing an overly broad female-only assignment policy and by unnecessarily denying requests by female employees for transfers, in violation of Title VII.
“Employers may not unduly lock workers into or out of a job because of their sex,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Qualified male and female correctional officers deserve equal opportunities to compete for job assignments and transfers without unnecessary barriers.”
The complaint alleges that beginning in 2009, MDOC discriminated against female correctional officers on the basis of sex at its only prison for female inmates, Huron Valley. The complaint further alleges that MDOC restricted multiple correctional officer positions on the basis of sex and without justification, in violation of Title VII. The complaint also alleges that MDOC has a pattern or practice of denying the transfer requests of female correctional officers from Huron Valley to other MDOC prisons, while at the same time granting transfer requests by male correctional officers to move to other facilities. Both policies required female employees at Huron Valley to work excessive overtime hours at a cost to their health.
The lawsuit seeks a court order requiring the defendants to stop discriminatory job assignment and transfer policies at Huron Valley and to order MDOC to develop and implement lawful and effective measures to prevent further discrimination. The remedial relief sought by this lawsuit also includes monetary damages as compensation for those female correctional officers who were harmed by the alleged discrimination.
“The Michigan Department of Corrections’ policy unnecessarily limits job opportunities for its female employees at the Huron Valley Correctional Facility,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “We are not challenging positions where it makes sense to assign only female officers, but only those positions that could reasonably be filled by men or women. By limiting positions that are not justifiably related to inmate privacy to women officers, MDOC created staffing limitations that harm female employees by forcing them to work overtime and preventing them from transferring to other facilities that are closer to their homes, offer more favorable conditions or provide promotional opportunities.”
Twenty-eight female correctional officers filed charges with the Equal Employment Opportunity Commission (EEOC) challenging MDOC’s female-only job assignment and transfer policies. The EEOC’s Detroit Field Office, in the Indianapolis District, investigated the charges and found reasonable cause to believe that MDOC discriminated against these female correctional officers and other female correctional officers employed at Huron Valley on the basis of sex. After unsuccessful efforts at conciliation, the EEOC referred the charges to the Justice Department.
“Making decisions on job assignments and transfers based on a person’s sex violates federal law and is completely unacceptable,” said Director Gail Cober of the EEOC’s Detroit Field Office. “The EEOC will continue to work in partnership with the DOJ to ensure that public employers follow the law and we will continue to fight for victims of sex discrimination to ensure that everyone has equal opportunity in the workplace.”
The case was brought by Trial Attorneys Carol Wong, Lisa Wilson Edwards and Taryn Wilgus Null of the Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney Sarah Karpinen of the Eastern District of Michigan. Enforcement of federal employment discrimination laws is a top priority for the Justice Department. Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
MDOC Complaint
Marathon Petroleum Company to Reduce Air Pollution from Refineries in Five StatesRead the Press Release
The U.S. Environmental Protection Agency (EPA) and the Department of Justice today announced an agreement with Ohio-based Marathon Petroleum Company that will reduce air pollution from the company’s petroleum refineries in Illinois, Kentucky, Louisiana, Michigan and Ohio. Marathon will spend $319 million to install state-of-the-art Flare Gas Recovery Systems (FGRSs), which will capture and recycle gases that would otherwise be sent to combustion devices known as flares. Marathon will also spend $15.55 million on projects to reduce air pollution at three of the facilities and will pay a civil penalty of $326,500 to the United States.
“This agreement continues the significant pollution reductions achieved under our earlier consent decree with Marathon in 2012,” said John C. Cruden, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “All five communities near these refineries will breathe cleaner air as a result of this agreement and Detroit will see a reduction in flaring at the refinery’s fence line.”
“When companies like Marathon install state-of-the-art pollution controls, they reduce air pollution in some of our most vulnerable communities,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “By updating this agreement, we are furthering our commitment to protect communities across the Southeast and the Midwest, especially places like Detroit that are overburdened by pollution.”
“This agreement marks significant progress in environmental justice in southwest Detroit,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “It shows that industry can thrive while protecting the environment. By investing in technology, Marathon will improve air quality for all of our residents throughout southeastern Michigan.”
The settlement filed today in the U.S. District Court in Detroit amends a 2012 consent decree involving the company’s flares. A flare is a mechanical device, ordinarily elevated high off the ground, used to combust waste gases.
When fully implemented, today’s agreement is expected to reduce harmful air pollutants like volatile organic compounds (VOCs), sulfur dioxides (SO2) and nitrogen oxides (NOx) by approximately 1,037 tons per year. In 2012, Marathon agreed to reduce air pollution from flares by generating less waste gas and by installing equipment designed to make flares burn more efficiently. The 2012 settlement has reduced emissions of VOCs and SO2 by over 5,200 tons per year.
Under the agreement filed today, Marathon will install seven FGRSs at an estimated cost of $319 million at five of its refineries located in Canton, Ohio; Catlettsburg, Kentucky; Detroit; Garyville, Louisiana; and Robinson, Illinois. Marathon will be required to operate these FGRSs at a higher percentage of time than EPA has ever secured in prior enforcement actions. Marathon will also maintain two duplicates of a critical spare part to be delivered immediately to any of these refineries as necessary, to help make sure the FGRSs have minimal downtime.
Marathon will also spend approximately $6 million to shut down a flare at the fence line of its Detroit refinery and $9.55 million on projects to reduce NOx emissions at its Canton and Garyville refineries.
By installing advanced pollution controls at its refineries, Marathon will help reduce emissions that can cause respiratory and cardiovascular health impacts, which can disproportionately affect low-income and vulnerable populations, including children.
Under the settlement, some of Marathon’s obligations under the 2012 agreement to ensure high flare combustion efficiency will eventually be replaced by Marathon’s obligation to comply with a new, 2015 EPA rule on flare combustion efficiency. At four refineries, compliance with an EPA flare standard related to SO2 will be extended for a limited period. The projected temporary increase in pollution related to those extensions will be more than offset by contemporaneous decreases that will continue indefinitely.
The consent decree – subject to a 30-day public comment period and final court approval – is available at: www.justice.gov/enrd/.
To learn more about the settlement, visit: https://www.epa.gov/enforcement/first-amendment-2012-us-v-marathon-petroleum-co-clean-air-act-consent-decree
To learn more about EPA’s civil enforcement of the Clean Air Act, visit: https://www.epa.gov/enforcement/air-enforcement.
To learn more about EPA’s refinery initiative, visit: https://www.epa.gov/enforcement/petroleum-refinery-national-case-results.
MPC First Amendment to Consent Decree
Former EAA Principal Sentenced for Conspiracy to Commit BriberyRead the Press Release
Kenyetta Wilbourn Snapp, 41, a former Educational Achievement Authority (“EAA”) principal of Denby High School and later of Mumford High School, was sentenced today to twelve months in prison as a result of her pleading guilty earlier this year to conspiracy to commit federal program bribery and federal income tax evasion charges, United States Attorney Barbara L. McQuade announced. In addition, Snapp was ordered to pay restitution in the amount of $58,050 to EAA as well as $26,233 to the Internal Revenue Service.
Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.
At the time of the plea, Snapp admitted to selecting Making a Difference Everyday (“M.A.D.E.”), a company owned by co-defendant Glynis Thornton , as the after-school tutoring vendor for Denby High School and then Mumford High School. In exchange, Thornton paid Snapp monetary kickbacks totaling approximately $58,000, as a reward for Snapp selecting and retaining M.A.D.E. as the after-school tutoring vendor. Thornton admitted that she disguised payments to Snapp by causing checks to be issued payable to a M.A.D.E. employee’s company, rather than paying Snapp directly. The M.A.D.E. employee would then deposit and withdraw the money and give it to Snapp. Snapp also admitted to failing to report the kickback payments as income during taxable year 2012.
"Ms. Snapp deserves to spend time in prison for her betrayal of public trust, but this sentence demonstrates the value of early cooperation to provide information about the criminal acts of others”, stated United States Attorney McQuade.
"Ms. Snapp and Ms. Thornton's efforts to divert funds from the struggling Detroit Public School District and students trying to better themselves is particularly disturbing," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "These convictions represent the commitment of the FBI and our partners to expose and shut down schemes that would rob our communities of the education and services that they count on and deserve."
IRS-CI Special Agent in Charge Koopman stated, "When public officials commitcrimes, whether as part of their official duties or in their private lives, they are violating the trust of the people they serve. IRS-CI will continue to hold them accountable for their actions".
This case was investigated by agents of the FBI and IRS-CI. This case is being prosecuted by Assistant United States Attorneys J. Michael Buckley and Frances Carlson.
Former Detroit Public Schools Director of Grant Development Charged with FraudRead the Press Release
Criminal charges were filed today against Carolyn StarkeyDarden, a former Detroit Public Schools Director of Grant Development, alleging federal program fraud, announced U.S. Attorney Barbara L. McQuade.
Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
The charging document, known as a criminal information, charges that between 2005 and 2012, Carolyn StarkeyDarden, 69, of Detroit, as president and/or agent of companies she established to provide supplemental educational services to eligible students in Michigan, obtained at least $1,275,000 from DPS through a scheme in which she submitted fraudulent invoices for payment to DPS for tutorial services that were never rendered to DPS students.
United States Attorney Barbara L. McQuade said, “We hope that our work to uncover fraud in public school systems will deter others from stealing funds intended to educate children.”
“Ms. StarkeyDarden cheated the students of Detroit Public Schools out of valuable resources by fraudulently billing for her company’s services,” said David P. Gelios, Special Agent in Charge, FBI Detroit Division. “In fact, Detroit students were cheated twice by this scheme. Students that needed tutoring never received it, and money that could have been spent on other resources was paid to Ms. StarkeyDarden as part of her fraud scheme.”
StarkeyDarden faces up to 10 years in prison and fines of up to $250,000 on the charge of Federal Program Theft.
This case was investigated by agents of the FBI. This case is being prosecuted by Assistant United States Attorney Dawn N. Ison.
The FBI Detroit Area Corruption Task Force (DACTF) is led by the FBI Detroit Field Office, and consists of Special Agents and law enforcement officers with the FBI Detroit; the Detroit Police Department; the Michigan State Police; the Michigan Attorney General’s Office; the Internal Revenue Service – Criminal Investigation Division; the U.S. Department of Housing and Urban Development–Office of Inspector General; the U.S. Environmental Protection Agency–Office of Inspector General; the U.S. Department of Transportation–Office of Inspector General; the U.S. Department of Homeland Security–Office of Inspector General; the U.S. Department of Education–Office of Inspector General; and the U.S. Department of Labor–Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
A Criminal Information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sterling Heights Man Sentenced to 30 Years in Prison for Child Exploitation CrimesRead the Press Release
A Sterling Heights man was sentenced to more than 30 years in federal prison after having been convicted in January by a jury of producing child pornography and enticing a minor online, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation.
Dennis George Dehate, 51, was sentenced yesterday by United States District Judge Sean Cox in Detroit.
Evidence presented during the trial established that DeHate preyed upon a 13-year-old girl, convincing her to produce sexually explicit images and videos for him. DeHate used the text message application, KIK, to communicate with the child, who lived out of state.
“Cell phone technology now provides a virtual doorway for sexual predators to enter children’s bedrooms from many states away,” McQuade said. “We urge parents to talk to their children about the dangers of communicating with strangers online, and to assure children that if they are victimized, they should never be ashamed to ask for help.”
“The sentencing of Dehate is a tremendous victory for the many investigators, counselors and non-government organizations tirelessly working to protect our nation’s children from online threats. The fight to eradicate such predators continues and the FBI asks anyone with information regarding such activity to immediately contact their nearest FBI field office or law enforcement agency,” Gelios said.
This case was investigated by Special Agents of the Federal Bureau of Investigation. The case is part of the Project Safe Childhood initiative, and was prosecuted by Assistant United States Attorney Maggie Smith.
Three Men Sentenced for Armed Robbery of West Bloomfield Tappers JewelryRead the Press Release
The final three defendants were each sentenced to 33 years in prison today for their involvement in the violent armed robbery of Tapper’s Diamonds and Fine Jewelry in West Bloomfield and an attempted armed robbery of Medawar Jewelers in Grand Rapids in April 2014, United States Attorney Barbara L. McQuade announced.
Co-conspirator Nathaniel Pembrook was sentenced to 33 years last week.
David Briley, 47, Shaheed Calhoun, 36, and Orlando Johnson, 42, were convicted along with Pembrook of a variety of charges, including conspiracy to interfere with interstate commerce by force, interference with interstate commerce by force, use and carry of a firearm during and in relation to a crime of violence, and being felons in possession of firearms after a four week-long trial in November and December 2015. The evidence produced at trial showed that all four men lived in Philadelphia and traveled to Michigan on April 21 and 22, 2014, to commit armed robberies of jewelry stores, particularly targeting Rolex distributors, as part of a six-person robbery crew.
This armed robbery crew initially attempted to steal Rolex watches and other valuables from Medawar Jewelers in Grand Rapids, at approximately 12:28 pm on April 22, 2014. During that attempted robbery, one robber used a hammer to smash the Rolex watch display while three other robbers, one armed with a gun, rushed to the back area of the store looking for other valuables. The store owners, who are registered concealed pistol owners, shot the armed robber, and all of the robbers fled without any valuables.
About five hours later, three men, dressed in identical clothes as the robbers in Grand Rapids earlier that day, entered Tapper’s Diamonds and Fine Jewelry on Orchard Lake Road in West Bloomfield, and held employees and customers at gunpoint as they stole approximately $1.3 million worth of Rolex watches. The men then fled the store without being apprehended.
The Federal Bureau of Investigation, Kent County Sheriff Department, and West Bloomfield Police Department coordinated their investigative efforts and began to piece together various pieces of evidence to identify the armed robbers. Pembrook’s blood, containing DNA, were found at the Medawar Jewelers location. Investigators discovered that Pembrook checked himself into Pennsylvania Prysberatian Hospital in the early morning hours of April 23, 2014, complaining of a gunshot wound. The hospital removed the bullet from Pembrook’s arm and Michigan State Police laboratory personnel were able to match the fired bullet to the Medawars owner’s firearm. Additionally, investigators tracked down video and cell phone information that helped to place all of these men from Philadelphia at the robbery locations during the times of the robberies.
Court records show that these men had a long history of committing larcenies and armed robberies. Briley had been previously convicted on 17 prior occasions, Calhoun had eight prior convictions, and Johnson had 13 prior convictions.
“We are grateful for the outstanding coordination by law enforcement agencies across state lines to put this case together.” McQuade said. “Armed robbery creates an unacceptable risk of harm to the public, and we are pleased that these men will be off the streets for a long time.”
Law enforcement agencies are still attempting to identify the final two persons associated with this robbery crew. If anyone has any information about those person’s identities, they are asked to contact the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorneys Daniel Lemisch and Christopher Graveline.
United States Attorney Barbara McQuade Commemorates 10th Anniversary of Project Safe ChildhoodRead the Press Release
More than 350 students and parents attended a community forum on Child Exploitation, Prevention and Enforcement hosted by Southgate Anderson High School this morning, announced United States Attorney Barbara L. McQuade.
The event was held to commemorate the tenth anniversary of Project Safe Childhood, a Department of Justice nationwide initiative launched in 2006 to combat child sexual exploitation.
The event consisted of presentations from experienced prosecutors about the dangers of online activity, including how online predators extort children for sexually explicit images and videos. This criminal activity, commonly called sextortion, has become a growing concern across the country. U.S. Attorney McQuade and her assistant prosecutors highlighted some sextortion prosecutions, while former Wayne County Sheriff’s Deputy Erin Diamond described the latest technology and the dangers lurking online. The panel also provided parents and students with an opportunity to ask questions regarding their online activity.
"I have been astonished by the number of online predators who are extorting teens, McQuade said. "We need to tell teens that they should never be too ashamed to tell their parents or another adult that they have been the victim of sextortion. Reporting sextortion to police is the only way to stop a predator from exploiting you, and may also help rescue other victims."
The event provided an opportunity for the public to become more aware of the United States Attorney’s Offices aggressive approach to raising awareness and educating the public on ways to prevent the future sexual exploitation of children.
U.S. Attorney McQuade expressed thanks to Southgate Anderson High School Superintendent Leslie Hainrihar and Assistant Principal Dave Pinkowski for hosting the event and to the students and parents who attended and to the team of dedicated prosecutors and law enforcement who successfully put together the event.
Serial Armed Robber Sentenced to 33 Years in PrisonRead the Press Release
A Detroit man was sentenced to 33 years in federal prison after having pleaded guilty earlier this year to armed robbery and firearms offenses, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation.
Elan Andrews, 29, of Detroit was sentenced yesterday by United States District Judge Gerald E. Rosen in Detroit.
According to court records, Andrews was the leader of a several man robbery crew that committed armed robberies of Little Caesar’s fast food stores in Oak Park and Dearborn in March of 2008. Andrews and his accomplices would enter the restaurant wearing hoodies, display a firearm, and demand the contents of the cash register and safe before fleeing to a waiting vehicle with an occupant inside. The “hoodies” worn during the robberies were unique "hoodies" in that one had a skeletal-like design on the chest area and the other had a web-like design on its chest area. Hence, law enforcement dubbed them the "Spiderman Crew." In addition, the hood of each hoodie zipped from the back portion of the hood all the way down below the front chest portion. Each hoodie, once zipped, had a built in mask that enclosed and hid the wearer's face behind a built-in dark mesh material. The two robberies were part of a rash of robberies of commercial fast food restaurants over a two-week period during the spring of 2008. The robberies were wide-spread and targeted restaurants in Detroit and surrounding suburban communities, including Ferndale, Birmingham, Redford, and Oak Park.
Andrews, and other members of the crew, were apprehended as a result of a task force comprised of officers from the Detroit Police Department and several suburban law enforcement agencies that dedicated several of its officers to the task force in an effort to stop this particular crime spree.
US Attorney McQuade stated, “We hope that violent offenders will take note of this type of sentence and put down their guns."
Co-defendants Jamal Muhammad received a sentence of 9 ½ years, Anthony Sampson received a sentence of 6 years and Elisha Whitehead received a sentence of 15 years.
United States Attorney McQuade praised the work of all officers and agencies involved for the diligent pursuit and investigation of the men who were intent on terrorizing businesses, employees and customers in the Detroit area.
The case was prosecuted by Assistant United States Attorneys Terrence Haugabook and Shane Cralle.
Philadelphia Man Sentenced for Armed Robbery of West Bloomfield Tappers JewelryRead the Press Release
A Philadelphia man was sentenced to 33 years in prison today for his involvement in the violent armed robbery of Tapper’s Diamonds and Fine Jewelry in West Bloomfield and an attempted armed robbery of Medawar Jewelers in Grand Rapids in April 2014, United States Attorney Barbara L. McQuade announced.
McQuade was jointed in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Chief Michael Patton, West Bloomfield Police Department and Sheriff Lawrence A. Stelma, Kent County Sheriff’s Department.
Nathaniel Pembrook, 43, was sentenced before United States District Judge Laurie J. Michelson in Detroit, Michigan.
Pembrook, along with his co-conspirators David Briley, Shaheed Calhoun, and Orlando Johnson, were convicted of a variety of charges, including conspiracy to interfere with interstate commerce by force, interference with interstate commerce by force, use and carry of a firearm during and in relation to a crime of violence, and being felons in possession of firearms after a four week-long trial in November – December 2015. The evidence produced at trial showed that all four men lived in Philadelphia, Pennsylvania and traveled to Michigan on April 21-22, 2014 to commit armed robberies of jewelry stores, particularly targeting the Rolex distributors, as part of a six-person robbery crew.
This armed robbery crew initially attempted to steal Rolex watches and other valuables from Medawar Jewelers, located at 4518 Plainfield Avenue in Grand Rapids, at approximately 12:28 pm on April 22, 2014. During the course of that attempted robbery, one robber used a hammer to smash the Rolex watch display while three other robbers, one armed with a gun, rushed the back area of the store looking for other valuables. The store owners, who are registered concealed pistol owners, shot the armed robber and all the robbers fled without any valuables. About five hours later, three men, dressed in identical clothes as the robbers in Grand Rapids earlier that day, entered Tapper’s Diamonds and Fine Jewelry, located at 6337 Orchard Lake Road in West Bloomfield, and held employees and customers at gunpoint as they stole approximately $1.3 million worth of Rolex watches. The men then fled the store without being apprehended.
The Federal Bureau of Investigation, Kent County Sheriff Department, and West Bloomfield Police Department coordinated their investigative efforts and began to piece together various pieces of evidence to identify the armed robbers. Nathaniel Pembrook’s blood, and thus, DNA were found at the Medawar Jewelers location. Investigators discovered that Pembrook checked himself into Pennsylvania Prysberatian Hospital in the early morning hours of April 23, 2014 complaining of a gunshot wound. The hospital removed the bullet from Pembrook’s arm and Michigan State Police laboratory personnel were able to match the fired bullet to the Medawars owner’s firearm. Additionally, investigators tracked down video and cell phone information that helped to place all of these men from Philadelphia in Michigan and more specifically the robbery locations during the times of the robbery.
Law enforcement is still attempting to identify the final two persons associated with this robbery crew. If anyone has any information about those person’s identities, they are asked to contact the Federal Bureau of Investigation.
Briley, Calhoun, and Johnson are all scheduled to be sentenced next Friday, May 13, 2016 in the federal courthouse in Detroit.
"Armed robberies create a level of fear and risk to life that are unacceptable," McQuade said. "We are grateful for the collaboration of law enforcement agencies across state lines to build this investigation and bring these offenders to justice."
"The lengthy sentence imposed today, and previous convictions, are the result of hundreds of hours of work and dedication of our team of investigators and prosecutors." said, David P. Gelios, Special Agent in Charge, FBI Detroit Division. "The convictions and lengthy sentence should serve as a reminder to anyone who would travel to Michigan with the intent to commit a crime, particularly violent crimes, that the FBI, along with its federal, state and local partners, will locate them and bring them to justice."
The case was prosecuted by Assistant United States Attorneys Daniel Lemisch and Christopher Graveline
DEA’s National Prescription Drug Take-Back Day is SaturdayRead the Press Release
Twice-annual event takes place from 10 a.m. to 2 p.m. April 30
Detroit, MI – After collecting and destroying 5.5 million pounds—2,762 tons—of unused prescription drugs in the past 5 years, the U.S. Drug Enforcement Administration (DEA) is continuing its efforts to take back unused, unwanted and expired prescription medications. The DEA invites the public to bring their potentially dangerous, unwanted medicines to one of over 5,000 collection sites around the country, including over 440 sites in the Detroit Field Division, that are manned by more than 3,800 of DEA’s tribal and local law enforcement partners. This service is free of charge, with no questions asked.
The public can find a nearby collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and entering their zip code into the search window, or they can call 800-882-9539. Only pills and other solids, like patches, will be accepted—the public should not bring liquids, needles or other sharps to take back sites.
America is presently experiencing an epidemic of addiction, overdose and death due to abuse of prescription drugs, particularly opioid painkillers. 6.5 million Americans abuse prescription drugs, according to the most recent National Survey on Drug Use and Health, more than abuse cocaine, heroin, and hallucinogens combined.
U.S. Attorney for the Eastern District of Michigan, Barbara McQuade said, “Prescription pill addiction has exploded in Michigan, and has led to a resurgence in heroin use and overdose deaths,” McQuade said. “We appreciate DEA’s effort to remove this poison from homes so that it does not end up in the wrong hands.”
DEA Special Agent in Charge Timothy J. Plancon said, “Most prescription drug abusers get their pills from their own family, or from their friends. Please take the proactive step to reduce substance abuse in the United States by removing unwanted prescription drugs from your home.”
Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms. The removal from homes of unwanted prescription pills that can be abused, stolen or resold is an easy way to help fight the epidemic of substance abuse and addiction.
U.S. Department of Justice
Drug Enforcement Administration
Timothy J. Plancon
Special Agent in Charge
Detroit Field Division
www.dea.gov
Date: April 29th, 2016
Contact: Rich Isaacson
Number: (313) 234-4310
Former Saline Resident Pleads Guilty to Identity Theft and Wire FraudRead the Press Release
A former Saline man pleaded guilty today to identity theft and wire fraud, United States Attorney Barbara L. McQuade announced today.
United States Attorney McQuade was joined in the announcement by Jarod J. Koopman, Special Agent in Charge, Internal Revenue Service – Criminal Investigation.
Bradley Raymond Laboe, 54, a resident of Onsted, Michigan and previously of Saline, Michigan entered the guilty pleas before U.S. District Judge Victoria A. Roberts.
Laboe pleaded guilty to the charges in an Information that was filed earlier this month. According to the court document, Laboe stole personal information of approximately 77 elderly residents of Northern Ohio and used that stolen personal information to file fraudulent tax returns. Laboe used the personal information to electronically file 85 fraudulent tax returns with the IRS from his residence in Saline, Michigan. The fraudulent tax returns claimed earnings from forms W-2 and various Schedule A deductions and sought refunds of over a half million dollars. However, a majority of the victims were actually retired and receiving Social Security benefits. In furtherance of the scheme, Laboe opened several bank accounts and directed the fraudulent refunds to be electronically deposited into these accounts.
Laboe is scheduled to be sentenced on August 15 at 2:30 p.m. The maximum penalty for the wire fraud charge is 20 years imprisonment and/or a fine of $250,000 and the maximum penalty for the identity theft violation is 15 years imprisonment and/or a $250,000 fine.
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” said Special Agent in Charge Jarod J. Koopman. “Filing fraudulent tax returns in the names of other individuals not only results in a severe harm to those victims whose identities were stolen, but creates a significant monetary loss to the U.S. Treasury.”
This case was investigated by Special Agents of the Internal Revenue Service – Criminal Investigation and Assistant United States Attorney Ross MacKenzie prosecuted the case.
U.S. Attorney’s Office Obtains ADA Settlement with Saginaw HospitalRead the Press Release
The U.S. Attorney's Office for the Eastern District of Michigan has reached a settlement with a Saginaw hospital to ensure effective communication with individuals who are deaf or hard of hearing, U.S. Attorney Barbara L. McQuade announced today. The agreement under the Americans with Disabilities Act (“ADA”) resolves a complaint filed with the U.S. Attorney’s Office alleging that HealthSource Saginaw failed to provide a sign language interpreter to a deaf patient at one of its outpatient clinics. HealthSource Saginaw fully cooperated with the investigation into this matter.
The settlement stemmed from a complaint submitted by a mother in Flint who alleged that HealthSource Saginaw violated the ADA by failing to provide appropriate auxiliary aids and services, including sign language interpreter services, to her teenage son, who is deaf, while he received outpatient treatment at the Saginaw hospital. According to the complaint, the minor was provided with an interpreter while receiving inpatient services at the hospital, but HealthSource Saginaw refused to provide him with an interpreter for follow-up outpatient treatment.
The ADA prohibits discrimination against individuals with disabilities by health care providers. To ensure that people with disabilities have equal access to health care services, medical providers are obligated to provide effective communication for patients and companions who are deaf or hard of hearing. This assistance may include providing sign language interpreters to ensure that patients who are deaf are able to communicate with their health care providers or providing other auxiliary aids or services that are appropriate under the circumstances at no cost to the patient. The appropriate aid or service depends on a variety of factors, including the nature, length, and importance of the communication; the context of the communication; the communication skills and knowledge of the individual who is deaf or hard of hearing; and the individual’s stated need for a particular type of auxiliary aid or service.
The settlement agreement requires HealthSource Saginaw to adopt specific policies and procedures to ensure that auxiliary aids and services are promptly provided to patients or companions who are deaf or hard of hearing, to provide training to hospital staff on the new policies and procedures and the overall requirements of the ADA; and to appoint an ADA coordinator at the hospital to ensure access to appropriate auxiliary aids and services.
“While this settlement demonstrates HealthSource Saginaw’s commitment to provide effective communication to people who are deaf or hard of hearing, this issue is much bigger than one hospital or one medical provider. More than 25 years after the enactment of the ADA, too many medical providers still fail to fulfill their obligations to provide effective communication to patients and their companions who are deaf. We will continue our enforcement efforts to raise awareness and to ensure that the promise of the ADA is a reality for all Americans,” said U.S. Attorney Barbara L. McQuade.
In the past year, the U.S. Attorney’s Office has resolved several cases involving equal access to health care for individuals with disabilities. These cases include doctors and medical offices that have failed to provide sign language interpreters to patients who are deaf and medical offices that have failed to make their procedures accessible for patients who use wheelchairs. The U.S. Attorney’s Office is continuing to investigate a number of other hospitals and medical offices to ensure that they are providing physical access to medical care for people with mobility disabilities, and effective communication for people who are deaf or hard of hearing, as part of the Department of Justice’s Barrier Free Healthcare Initiative.
For more information on the ADA and the DOJ’s Barrier Free Healthcare Initiative, please visit http://www.ada.gov/usao-agreements.html. Those interested in finding out more about these settlements, the obligations of health care providers and other places of public accommodation under the ADA, or filing a complaint, may contact the U.S. Attorney’s Office via email at [email protected], or by calling 313-226-9151. Individuals may also contact the Justice Department through its toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), access its ADA website at www.ada.gov, or file a complaint by email at [email protected].
"Face to Face" Meeting with Returning Citizens as Part of National Reentry WeekRead the Press Release
Flint, MI - The Department of Justice has designated the week of April 24-30, 2016, as National Reentry Week. Supporting successful reentry is an essential part of the Department’s mission to promote public safety – because helping individuals return to productive, law-aiding lives can reduce the rate of recidivism.
In recognition of Reentry Week, the U.S. Attorney's Office, Bureau of Alcohol, Tobacco, Firearms & Explosives, Michigan Department of Corrections and the Genesee County Prosecutor's Office has scheduled a “Face to Face" meeting to take place on April 26, 2016, between law enforcement and parolees. The educational meeting is a collaborative effort designed to prevent recidivism among the offender population.
Face-to-Face provides offenders with information about the consequences of committing new gun crimes, which includes stiff federal sentences with no chance of parole and prisons in distant locations. The program also provides information about opportunities, such as education, job training, drug treatment, and employment from wrap around service organizations.
Each year, more than 13,000 citizens return from prison to their communities in Michigan. Statistics show that about one-third of them will reoffend. Offenders identify joblessness as their biggest barrier to success, and research shows that unemployment and crime go hand-in-hand. Sending returning citizens back to their communities with no ability to get a job is a recipe for recidivism and a costly mistake. Taxpayers pay about $34,000 a year to incarcerate a single prisoner. Rather than watching returning citizens go back to prison through the revolving door, it makes fiscal sense to invest in helping them find jobs.
“We are taking a targeted approach to reducing crime by telling offenders about of the consequences of committing new crimes and about the support services that are available to help them succeed outside of prison,” stated United States Attorney Barbara McQuade.
Media is welcome to attend the meeting which will be held from 2:00 p.m. to 3:00 p.m. in the City Hall Dome, located on the grounds of the City of Flint Municipal Service Campus, 1101 S. Saginaw Street, Flint, MI. Immediately following the meeting U.S. Attorney Barbara McQuade and ATF Special Agent in Charge Robin Shoemaker will hold a media availability. The Dome is located on E. 7th St, just east of S. Saginaw Street. Parking is accessible off 7th street.
For more information, please contact Gina Balaya at (313) 226-9758 or Robert Poikey at (313) 226-9120.
GUIDELINES:
PHOTOGRAPHERS WILL NOT BE ALLOWED TO SHOOT THE FACES OF PAROLEES OR PROBATIONERS, ONLY THE FACES OF LAW ENFORCEMENT OFFICIALS AND THE BACKS OF HEADS OF THE AUDIENCE MEMBERS. REPORTERS MAY CONDUCT INTERVIEWS WITH LAW ENFORCEMENT OFFICIALS ONLY AND WILL NOT IDENTIFY PAROLEES OR PROBATIONERS IN PRINT, INTERNET OR BROADCAST MEDIA.
Detroit One Collaboration Leads to 30-Year Sentence of Major Gang Leader for Violent Racketeering CrimesRead the Press Release
The leader of the Bounty Hunter Bloods violent street gang was sentenced to 30 years in prison today, U.S. Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Robin Shoemaker, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Detroit Police Chief James Craig, whose departments led the investigation as part of the Detroit One collaboration.
U.S. District Judge Nancy G. Edmunds sentenced Ramiah Jefferson, 27, of Detroit, a/k/a “Nightmare,” following his conviction at trial in August for racketeering conspiracy and possession of a firearm in furtherance of a crime of violence. Jefferson directed the murder and attempted murders of rival street gang members, furnished guns and encouraged gang members to commit violent crimes and narcotics trafficking.
Evidence at trial showed that the Bounty Hunter Bloods operated primarily in northwest Detroit, but their illegal activities extended outside of Michigan from California to North Carolina. Their crimes included murders, carjackings, armed robberies, drive-by-shootings, home invasions, arsons and witness intimidation.
“The Detroit One partners are working to reduce violent crime through gang prevention and intervention, but sometimes enforcement actions like this one are necessary,” McQuade said. “When street gangs commit violent acts and endanger innocent victims, we will use the full force of the law to remove them from our neighborhoods.”
“ATF’s primary mission is to protect our neighborhoods from violent organized street gangs,” said S. Robin Shoemaker, ATF Special Agent in Charge. “The significant federal sentences of the Bounty Hunter Bloods street gang leaders are the result of Detroit One initiative, an ongoing cooperative federal and state effort to combat violent gang and gun violence. Violent crime plagues our communities in many ways, but the link to most is the illegal possession and use of firearms by prohibited individuals”.
Bounty Hunter members extensively used social media as a means of self-promotion and communication. Members posted photographs on their personal social networking sites that highlighted their affiliation with the Bounty Hunters as well as their gang-related accomplishments. For example, on December 27, 2010, Jefferson utilized Facebook to direct the murder or attempted murders of rival Avon Gangster gang members. Jefferson posted that his fellow Bounty Hunters needed to “knock them down one by one” and that it was “huntin’ season.” Bounty Hunter members also created rap songs, amplifying their allegiance to the gang. Members would post these songs, along with videos, photographs and messages on social networking sites to celebrate and project the violent culture of the gang.
Evidence at trial demonstrated that the way members advanced in the gang was by “putting in work,” which meant committing murders, robberies, carjackings, home invasions, drug-deals and other acts of violence against rival gangs. One of these carjackings and murders occurred when members of the Bounty Hunter Bloods attempted to carjack a vehicle outside of a CVS pharmacy on Schaefer Road in February 2014. That carjacking led to the murder of the CVS security guard, Courtney Meeks, when he attempted to prevent the carjacking of a mother and her infant son. The Wayne County Prosecutor’s Office successfully prosecuted Jamare Rucker and Jeremy Jackson, both Bounty Hunter members, with both men receiving 33-60 year sentences for second degree murder and a consecutive two years for felony firearm convictions.
Evidence at trial also established that the Bounty Hunter Bloods were responsible for the murder of Marquise Robinson, a young man who was brutally murdered by members of this street gang because it was believed that he refused to come to the aid of a Bounty Hunter member, David Lamar Gay. The Wayne County Prosecutor’s Office successfully prosecuted the main shooter, Jayjuan Watts, who is now serving a life sentence for his crime. The U.S. Attorney’s Office successfully prosecuted David Lamar Gay for his role in the murder as part of this current prosecution.
In addition to Jefferson, the following Bounty Hunter Blood members were convicted and sentenced:
Evan Johnson, 24, of Detroit, a/k/a “Unkle Murda,” convicted of RICO conspiracy and possession of a firearm in furtherance of a crime of violence and sentenced to 30 years’ imprisonment;
Alexander Deshawn George, 20, of Detroit, a/k/a “Bullet,” convicted of RICO conspiracy and possession of a firearm in furtherance of a crime of violence and sentenced to 18 years’ imprisonment;
David Lamar Gay, 22, of Toledo, Ohio, a/k/a “Glock,” convicted of murder in aid of racketeering and sentenced to 17 ½ years’ imprisonment;
Drakkar Beral Cunningham, 25, of Detroit, a/k/a “Rellz,” convicted of RICO conspiracy and possession of a firearm in furtherance of a crime of violence and sentenced to 5 years’ imprisonment;
Everette Ramon George, 21, of Detroit a/k/a “Klout,” convicted of assault with a dangerous weapon in aid of racketeering and sentenced to four years, nine months’ imprisonment;
Mario Garnes, 28, of Detroit, a/k/a “Bloodhound,” convicted of RICO conspiracy and sentenced to 42 months’ imprisonment; and
Gerald Deshawn Turner, 25, of Detroit, a/k/a “G-Red,” convicted of RICO conspiracy and sentenced to time served and three years of supervised release.
Marcus Andre Harvey, 23, of Detroit, a/k/a “Ceasar,” was also convicted of RICO conspiracy and possession of a firearm in furtherance of a crime of violence and is scheduled to be sentenced on May 2, 2016.
This indictment stems from the Detroit One initiative—a combined effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working collaboratively, local, state and federal law enforcement seek to identify and arrest individuals and groups initiating violence in Detroit. Since Detroit One started in 2013, this effort has had led to significant indictments, convictions and sentences against a number of street gangs who are responsible for much of the violent crime in Detroit, including members of Latin Counts, Vice Lords and others, and a reduction in homicide and violent crime in Detroit.
The case was prosecuted by Assistant United States Attorneys Eric Doeh, Andrew Goetz and Eaton Brown.
Detroit Area Doctor Charged with Illegal Distribution of Prescription Drugs and FraudRead the Press Release
An indictment was unsealed today charging a doctor and three other individuals with conspiracy to illegally distribute prescription drugs, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Acting Special Agent in Charge Timothy J. Plancon, U.S. Drug Enforcement Administration (DEA), Detroit Field Division and Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General - Chicago Region.
Charged in the indictment are:
Dr. Michael Weiss, D.O. 63, of Troy
Edgarten Howard, 43, of Detroit
Carlos Johnson, 40, of Detroit
Ricky Easley, 30, of Detroit
The indictment alleges that from January 2013 through April 2015, Weiss conspired with the other defendants to write a large number of prescriptions for highly addictive controlled substances for supposed patients, who did not have a legitimate medical need for the drugs. Weiss primarily prescribed Roxicodone and its generic equivalent, oxycodone, and promethazine cough syrup. He saw the supposed patients in Howard’s home, where Howard, Johnson, and Easley paid Weiss cash for his services. Howard, Johnson, and Easley then obtained the drugs that Weiss authorized through the prescriptions, and sold them on the street.
The indictment alleges that Weiss caused Medicare to pay more than $250,000, and Blue Cross almost $40,000, for the illegitimate prescriptions. The indictment also alleges that Weiss submitted about 950 claims to Medicare and Blue Cross for providing services to the supposed patients, although Weiss never actually provided the services. Weiss received about $65,000 through the fraudulent bills.
“Diversion of prescription pills to the street market promotes the addiction to painkillers that leads to overdose deaths,” McQuade said. “We are focusing on charging doctors, pharmacists and the networks that are putting this poison on the streets.”
DEA Special Agent in Charge Timothy J. Plancon stated, “This indictment is just one example of DEA's determination and commitment to combat the troubling prescription drug abuse problem in this country. The doctor involved in this investigation abused his position of trust and jeopardized the lives of many individuals by leading this conspiracy to distribute dangerous controlled substances onto the streets of southeast Michigan and beyond. This indictment should make it clear that the DEA and our law enforcement partners are focused on investigating and pursuing those that are illegally diverting prescription drugs into our communities.”
"Physicians have a responsibility to provide care that is medically necessary and is in the best interest of their patients" said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General - Chicago Region. "Physicians who facilitate and contribute to the illegal diversion of prescription medications will be held accountable."
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
The case was investigated by special agents and task force officers of the DEA and HHS-OIG. The case is being prosecuted by Assistant U.S. Attorney Lynn Helland.
Physician Pleads Guilty for Role in Detroit-Area Medicare Fraud SchemeRead the Press Release
A licensed physician who worked for a Detroit-area medical practice pleaded guilty today for his role in a $2.4 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Ali Elhorr, M.D., 47, of Dearborn, Michigan, pleaded guilty before U.S. District Judge Nancy G. Edmunds of the Eastern District of Michigan to one count of conspiracy to commit health care fraud. A sentencing hearing is scheduled for Aug. 16, 2016.
Elhorr worked at House Calls Physicians P.L.L.C., which was located in Allen Park, Michigan. According to admissions in his plea agreement, from approximately September 2009 to September 2012, Elhorr conspired with others, including his brother, Dr. Hicham Elhorr, to commit health care fraud by agreeing to serve as a “supervising” physician for unlicensed individuals purportedly providing in-home physician services. The unlicensed individuals prepared medical documentation that Elhorr and other licensed physicians signed as if they had performed the visits when, in fact, Elhorr and the other licensed physicians had not treated the beneficiaries, he admitted. The visits were then billed as if performed by the licensed physicians, according to the plea.
Elhorr admitted that between approximately March 2008 and September 2012, House Calls Physicians billed Medicare more than $11.5 million for the cost of physician home services. Of that amount, Elhorr admitted that he caused the submission of approximately $2.4 million in false and fraudulent claims.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan. Former Assistant Chief Catherine K. Dick and Trial Attorneys Matthew C. Thuesen, F. Turner Buford and Shubhra Shivpuri of the Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS’s Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
U.S. Attorneys Launch Nationwide Effort to Confront Discriminatory Backlash in Wake of Terrorist AttacksRead the Press Release
Detroit - U.S. Attorneys are joining forces with local law enforcement and community leaders for a series of events around the country to address backlash against Muslim, Arab, Sikh and South Asian Americans following the tragic terrorist attacks in Brussels, Paris and San Bernardino, California. The 14 events in 11 districts will build on both the Justice Department’s prosecutorial work in countering post-September 11th backlash, as well as its outreach efforts, including the new interagency initiative to combat religious discrimination throughout the country. From April 13 through 20, U.S. Attorneys in California, Colorado, Connecticut, Idaho, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, Ohio and Utah will work with community leaders and law enforcement to address discrimination, violence and harassment targeting people because of what they look like, which country they come from or where they worship. The aim is to reaffirm the Department of Justice’s commitment to protecting civil rights and preventing and prosecuting hate crimes. Barbara L. McQuade, United States Attorney for the Eastern District of Michigan, along with FBI Special Agent in Charge David P. Gelios, Washtenaw County Sheriff Jerry Clayton and other law enforcement officials, will participate in a listening session with students from the University of Michigan and President Mark Schlissel regarding bias-related crime issues with a press briefing to follow. The event will take place today at 4pm at the University of Michigan Law School, Jeffries Lounge, South Hall 701 S. State Street, First Floor, Ann Arbor, MI 48109. A press briefing will follow at 5:15pm... "Federal law enforcement will take action against violence or threats of violence directed at anyone based on religion, ethnicity or national origin," McQuade said. "Even derogatory speech about Muslim Americans that is protected by the First Amendment can have adverse consequences by providing terrorist recruiters with propaganda to promote the false narrative that America is at war with Islam." During the last several months, individuals who are, or who are perceived to be, Muslim, Arab, Sikh and South Asian have been targeted for harassment and violence around the country. A Connecticut man pleaded guilty to firing a high-powered rifle at a mosque; a Florida man pleaded guilty to threatening to firebomb two mosques and shoot their congregants; a former Missouri man pleaded guilty to violating the civil rights of others by leading a conspiracy to deface a local Islamic center with graffiti and burn two copies of the Qur’an; and a New York man was sentenced to 13 months in prison for emailing death threats to the executive director of an Islamic advocacy group. Places of worship also face discrimination through unlawful barriers to construction in many communities around the country. In the last year, the Justice Department filed suit against Des Plaines, Illinois, over the city’s denial of rezoning to allow a Muslim congregation to use a vacant office building as a mosque. The complaint alleged that the city treated the mosque less favorably than it has treated nonreligious assemblies, discriminated against the mosque based on religion and imposed a substantial burden on the mosque members’ religious exercise without justification. The Justice Department also closed its investigation into Norwalk, Connecticut, after the city made changes to treat religious assemblies equally with nonreligious assemblies in five of its zoning districts. The department had opened an investigation of Norwalk’s zoning practices in 2012 in response to the city’s denial of a special use permit to the Al Madany Islamic Center to build a mosque on land it had bought in a residential zoning district. Backlash against Muslim, Arab, Sikh and South Asian Americans can have a particularly harmful impact on education, employment and housing. In March, the Civil Rights Division announced that the Educational Opportunities Section launched a new enforcement initiative with the U.S. Attorneys’ Offices to strengthen our efforts to combat religious discrimination in schools and other educational settings. The new intiative, together with Justice Department’s recent work in Bakersfield, California; Lewisville, Texas; Pine Bush, New York; Dearborn Heights, Michigan; DeKalb County, Georgia; and many more cities and counties through the nation, will help ensure that schools remain free from discrimination, harassment and violence for all students. This effort is a reflection of the Department of Justice’s long-standing commitment to working to protect Muslim, Sikh, Arab and South Asian Americans from threats and violence directed at them because of their religion or ethnicity, and to prevent acts of discrimination against them in the workplace, schools or elsewhere. Since September 11th, the Department of Justice has investigated over 1,000 incidents involving acts of violence, threats, assaults, vandalisms and arsons targeting Arab, Muslim, Sikh and South Asians, and those perceived to be members of these groups. The Civil Rights Division and U.S Attorneys’ offices have brought prosecutions against more than 60 defendants in such cases, with 57 convictions to date. # # #A Canadian Citizen Sentenced on Charges of Smuggling Turtles from the United StatesRead the Press Release
A Canadian citizen was sentenced today to 57 months in prison as a result of pleading guilty to six counts of smuggling turtles, some of which were endangered, from the United States in violation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora, U.S. Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Special Agent in Charge Jill Birchell of the U.S. Fish and Wildlife Service.
Kai Xu, 27, of Windsor, Ontario was sentenced today before United States District Judge John Corbett O’Meara in Ann Arbor. As part of his sentence, Judge O’Meara ordered to pay over $17,000 in restitution for the care of the turtles.
At the time of the plea hearing, Xu admitted that on six occasions in 2014 he entered the United States from Canada and traveled to Fed Ex and UPS facilities in the metro-Detroit area, where he retrieved packages that contained a variety of different species of live turtles. Xu then illegally smuggled the turtles out of the country using three methods. On some instances, Xu repackaged the turtles and shipped them directly to China, concealing the wildlife in snow boots. On one occasion, Xu taped the live turtles to his legs and groin (a total of 51 live turtles) and returned to Canada, smuggling the turtles in his pants to conceal them from customs officials. Finally, on the day of Xu’s arrest, he packaged over 1000 turtles into suitcases that he sent with a runner he had hired to fly directly from Detroit to Shanghai. The turtles were recovered by U.S. Fish and Wildlife special agents. They had been packaged into boots and cereal boxes and concealed within luggage.
Special Agent Birchell stated, “One of our highest priorities is to investigate individuals and companies who are involved in the unlawful commercial trafficking and smuggling of our Nation's fish and wildlife. This investigation demonstrates our commitment to pursuing those who decimate wildlife populations for their unfettered greed, depriving future generations of enjoying these species in their native habitats.”
The case was investigated by the U.S. Fish and Wildlife Service and the Wildlife Enforcement Directorate within Environment and Climate Change Canada. U.S. Customs and Border Protection and Homeland Security Investigations also assisted with the investigation.
Unlicensed Physician Pleads Guilty to Role in Detroit-Based $6.2 Million Medicare Fraud SchemeRead the Press Release
An Ohio man pleaded guilty to fraud charges for his role in a scheme to defraud Medicare out of approximately $6.2 million while he acted as an unlicensed physician at a Detroit in-home physician services company.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Cecil Alexander Kent Jr., 58, of Eastlake, Ohio, pleaded guilty yesterday before U.S. District Judge John Corbett O’Meara of the Eastern District of Michigan to one count of conspiracy to commit health care fraud, two counts of health care fraud and five counts of making false statements relating to health care matters. Sentencing is scheduled for Aug. 16, 2016, before Judge O’Meara.
Kent admitted that while he was employed at B&M Visiting Doctors PLC (B&M) and while he was unlicensed, he saw patients and falsified related patient records, including medical documents and billing documents, all under the name of a licensed medical doctor. He admitted that among those documents falsified were prescriptions for controlled substances, such as Fentanyl, that he personally wrote using the name and U.S. Drug Enforcement Administration (DEA) number of a licensed physician. Kent knew that Medicare did not pay for patient visits performed by unlicensed individuals, but that such claims were nonetheless submitted to Medicare through B&M, he admitted.
Charles McRae, 61, an unlicensed physician and part owner of B&M, and Alvin Williams, 65, an unlicensed physician, both of Detroit, were charged in the same indictment as Kent and pleaded guilty for their participation in this scheme to defraud. McRae and Williams will be sentenced in July 2016.
The FBI and HHS-OIG investigated this case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Trial Attorney Melissa Aoyagi and Assistant Chief Robert Zink of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Home Health Care Agency Owner Pleads Guilty in $4 Million Detroit-Area Medicare Fraud SchemeRead the Press Release
The owner and operator of a Detroit-area home health care agency pleaded guilty today for his participation in a $4 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
Naseem Minhas, 49, of West Bloomfield, Michigan, pleaded guilty before U.S. District Judge Nancy G. Edmonds of the Eastern District of Michigan to count of conspiracy to commit health care fraud. Sentencing has been scheduled for Sept. 6, 2016, before Judge Edmonds.
According to his plea agreement, Minhas was the owner and operator of TriCounty Home Care Services Inc. (TriCounty), a home health care agency that purported to provide home health care and physical therapy services to eligible Medicare beneficiaries in the greater Detroit metropolitan area. According to admissions made as part of his plea agreement, Minhas paid a physician and recruiters to refer Medicare beneficiaries to TriCounty and sign medical documents falsely certifying that they required home health care. Minhas, a licensed physical therapist, also admitted that he assisted in creating fake patient files to make it appear as though the patients needed and received services that were unnecessary or not provided.
Between February 2009 and November 2013, Medicare paid TriCounty $4 million as a result of these false and fraudulent claims, Minhas admitted.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan. Fraud Section Trial Attorneys Elizabeth Young and Thomas Tynan, Fraud Section Special Trial Attorney Katie R. Fink and Assistant U.S. Attorney Katherine Wagner of the Eastern District of Michigan are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Owner of Detroit Home Health Care Agency Sentenced to 57 Months in Prison for His Role in $3.4 Million Health Care Fraud SchemeRead the Press Release
The owner and operator of a Detroit-area home health care agency was sentenced to 57 months in prison today for his participation in a $3.4 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Region made the announcement.
Mohammad Rafiq, 49, of West Bloomfield, Michigan, was sentenced by U.S. District Judge George Caram Steeh of the Eastern District of Michigan, who also ordered Rafiq to pay $3,471,906.02 in restitution and to forfeit the same amount.
According to his plea agreement, Rafiq was the owner and operator of Perfect Home Health Care (Perfect), a home health care agency that purported to provide home health care and physical therapy services to eligible Medicare beneficiaries in the greater Detroit metropolitan area. According to admissions made as part of his plea agreement, Rafiq paid physicians and recruiters to refer Medicare beneficiaries to Perfect and sign medical documents falsely certifying that they required home health care. Rafiq also directed patient recruiters and Perfect employees to pay cash kickbacks to Medicare beneficiaries in exchange for signing multiple blank physical therapy records, he admitted.
Between February 2009 and November 2013, Medicare paid Perfect approximately $3.4 million as a result of these false and fraudulent claims, Rafiq admitted.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan. This case is being prosecuted by Trial Attorney Elizabeth Young and Special Trial Attorney Katie R. Fink of the Fraud Section and Assistant U.S. Attorney Katherine Wagner of the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Jackson Businessman Pleads Guilty to FraudRead the Press Release
A Jackson party store owner was sentenced today to 30 months in prison after pleading guilty to a fraud scheme to burn down his store to collect insurance proceeds, U.S. Attorney Barbara L. McQuade announced today
McQuade was joined in the announcement by Robin Shoemaker, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearm, and Explosives (ATF), Marlon Miller, Special Agent in Charge, Homeland Security, Immigration and Customs Enforcement, and Director Matthew Heins, Jackson Police Department.
Rajinder Singh, 25, formerly of Jackson, Michigan was sentenced by U.S. District Judge Judith Levy in Ann Arbor, Michigan. Judge Levy also ordered Singh to pay restitution in the amount of $10,000.
According to court records, Singh admitted that in May 2014, he conspired with others to intentionally set fire to his business, Robinson’s Party Store, located at 1233 S. West Avenue, Jackson, Michigan. The object of the conspiracy was to obtain the insurance proceeds for the business. Singh agreed to pay the men to set the fire. In pleading guilty to charges of conspiracy to commit malicious use of fire, wire fraud, misleading communication to hinder investigation of a federal offense and immigration document fraud, Singh admitted to making a fraudulent claim to his insurance company. Singh also admitted that he lied to a police detective by falsely stating that the fire was likely racially motivated on the mistaken belief that he is an "Arab." Singh filed a claim with his insurance company seeking payment of at least $400,000 for the damage to his building, the inventory lost in the fire and lost business income.
A month after the fire, Singh, prepared, or caused to be prepared, a Department of Homeland Security Form N-400 (Application for Naturalization) in an attempt to become a naturalized United States citizen. Several questions on the form required Singh to disclose his entire criminal history, even crimes for which he had not been charged. In response to those questions, Singh answered falsely when asked if he had ever committed, assisted in committing or attempted to commit a crime or offense for which he had not be arrested. Singh signed the form under penalty of perjury and mailed it to the U.S. Citizenship and Immigration Services offices.
“Committing any fraud scheme harms victims, but intentionally setting a fire creates a danger to public safety and firefighters that far exceeds the financial loss,” McQuade said. “This defendant attempted to exploit laws designed to protect people from hate crimes.”
“Arson for profit is not a victimless crime. Our communities as a whole become the victims because arson destroys property and places and increases economic burden on our communities”, said ATF Special Agent in Charge S. Robin Shoemaker. “ATF is committed to the investigation and prevention of arson and arson for profit schemes. I would also like to thank the Jackson Police and Fire Departments, Homeland Security, Immigration and Customs and the Eastern district of the United States Attorney’s Office.”
“Rajinder Singh sentence reflects his selfish actions of setting his business on fire to collect insurance money and used race to fuel his lie. He placed peace officers and firemen lives in danger, in the name of greed,” said Marlon V. Miller, special agent in charge of HSI Detroit. “HSI remains committed to working with our law enforcement partners to investigate and expose fraudulent activities regardless of the scheme.”
“This case is another outstanding example of interagency cooperation leading to conviction of Mr. Singh for his criminal activity in the City of Jackson, stated Chief Heins. "The ongoing partnership between the Jackson Police Department, ATF, and U.S. Attorney’s Office is invaluable in a case of this nature. Jackson Police Department Detectives Holly Rose and Gary Schuette were instrumental in bringing this case to the forefront.”
McQuade thanked the agents of ATF for their investigation of the case. She also thanked the Jackson Police Department for assisting in the investigation
The case was prosecuted by Assistant U.S. Attorneys John O’Brien and Shane Cralle.
Twelve Detroit Public Schools Principals, Assistant Superintendent and Vendor Charged with BriberyRead the Press Release
Criminal charges were filed today against 12 current or former Detroit Public Schools principals, an assistant superintendent and a vendor in an illegal bribery and kickback scheme, announced U.S. Attorney Barbara L. McQuade.
Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.
At the center of the scheme was Norman Shy, 74, of Franklin, owner of Allstate Sales, a DPS vendor of school supplies. The charges allege that each of the school officials conspired with Shy to knowingly certify and submit fraudulent invoices to DPS, causing DPS to pay Shy for goods that were never delivered. Invoiced supplies included auditorium chairs, supplemental teaching materials and raised line paper. In exchange, Shy paid bribes and kickbacks, using a portion of the payments he received from DPS from the fraudulent invoices. The scheme began in 2002 and continued until January 2015.
DPS principals had the primary authority for selecting vendors from a list approved by DPS and for certifying that invoiced goods were received. The principals accepted bribes and kickbacks in various forms, including prepaid gift cards, cash and checks payable directly to them or to third parties or companies for their benefit. The total amount of bribes and kickbacks that Shy paid to the 13 school officials was approximately $908,518. In exchange, Shy and his company received approximately $2.7 million dollars from DPS based on payments for fraudulent invoices.
The 13 charging documents, known as criminal informations, charge each defendant with one count of Conspiracy to Commit Federal Program Bribery as follows:
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Norman Shy (vendor), 74, of Franklin, and Clara Flowers, 61, of Detroit ($324,785); Flowers is the former principal of Henderson Academy and current Assistant Superintendent of DPS’ Office of Specialized Student Services. Additionally, Shy and Flowers were each charged with one count of Tax Evasion for failing to report income.
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Beverly Campbell, 66, of Southfield ($50,000), former principal of Rosa Parks School and Greenfield Union Elementary-Middle School;
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Clara Smith, 67, of Southfield ($194,000), current principal of Thirkell Elementary-Middle School;
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Germla Johnson, 56, of Detroit ($22,884), former principal of Charles R. Drew Academy and current principal of Earhart Elementary-Middle School;
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James Hearn, 50, of West Bloomfield ($11,500), current principal of Marcus Garvey Academy;
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Josette Buendia, 50, of Garden City ($45,775), current principal of Bennett Elementary School;
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Nina Graves-Hicks, 52, of Detroit ($27,385), former principal of Davis Aerospace Technical High School;
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Ronald Alexander, 60, of Detroit ($23,000), current principal of Charles L. Spain Elementary-Middle School;
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Ronnie Sims, 55, of Albion ($58,519), former principal of Fleming Elementary and Brenda Scott Middle School;
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Stanley Johnson, 62, of Southfield ($84,170), current principal of Hutchinson Elementary;
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Tanya Bowman, 48, of Novi ($12,500), former principal of Osborn Collegiate Academy of Mathematics, Science and Technology;
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Tia’von Moore-Patton, 46, of Farmington Hills ($4,000), current principal of Jerry L. White Center High School;
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Willye Pearsall, 65, of Warren ($50,000), former principal of Thurgood Marshall Elementary School.
“It is a heavy blow to public confidence when so many school principals are charged with bribery,” McQuade said. “Public officials should take note that while it may seem easy to take bribes when they are offered, officials who betray their public trust will eventually get caught and will face the consequences.”
"As a former educator, this case strikes to my very core," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "To enrich oneself at the expense of school children is bad enough, but to misapply public funds intended to educate kids in a district where overall needs are so deep, funding sources are so strained, and the need for better education is so crucial, is reprehensible and an insult to those educators working every day to make a better future for our children."
"IRS-CI Special Agent in Charge Koopman stated, “Principals are in positions of public trust and have an obligation to act in the best interest of their schools and the children for which they represent. Those principals, who line their own pockets through fraudulent means, violate this trust by making the conscious decision to deprive teachers of the very resources necessary to provide quality education. It is extremely disappointing when greed and selfishness deteriorate the communities and future possibilities of our youth.”
Each of the 14 defendants face up to five years in prison and fines of up to $250,000 on the charge of Conspiracy to Commit Federal Program Bribery. In addition, Shy and Flowers each face up to five years in prison and fines up to $100,000, together with the costs of prosecution on the Tax Evasion charge.
This case was investigated by agents of the FBI and IRS-CI. This case is being prosecuted by Assistant United States Attorneys J. Michael Buckley and Frances Carlson.
The FBI Detroit Area Corruption Task Force (DACTF) is led by the FBI Detroit Field Office, and consists of Special Agents and law enforcement officers with the FBI Detroit; the Detroit Police Department; the Michigan State Police; the Michigan Attorney General’s Office; the Internal Revenue Service – Criminal Investigation Division; the U.S. Department of Housing and Urban Development–Office of Inspector General; the U.S. Environmental Protection Agency–Office of Inspector General; the U.S. Department of Transportation–Office of Inspector General; the U.S. Department of Homeland Security–Office of Inspector General; the U.S. Department of Education–Office of Inspector General; and the U.S. Department of Labor–Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
A Criminal Information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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Last of Five Defendants Pleads Guilty in Multimillion-Dollar Medicare Fraud Scheme involving Detroit-Area Home Health CompaniesRead the Press Release
The last of five defendants pleaded guilty for his role in a $33 million Medicare fraud scheme involving Detroit-area home health care and hospice companies. The other four defendants have all pleaded guilty since March 15, 2016.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Region made the announcement.
Muhammad Tariq, 60, of West Bloomfield, Michigan, an owner of home health care and hospice companies in the Detroit area, pleaded guilty yesterday before U.S. District Judge Sean F. Cox of the Eastern District of Michigan to one count of conspiracy to commit health care fraud and wire fraud. On March 15 and March 18, 2016, respectively, Shahid Tahir, 45, and Manawar Javed, 40, both of Bloomfield, Michigan, two other owners of the home health care and hospice companies, each pleaded guilty before Judge Cox to one count of conspiracy to commit health care fraud and wire fraud. On March 18 and March 22, 2016, respectively, Waseem Alam 60, of Troy, Michigan, and Hatem Ataya, 47, of Flushing, Michigan, two physicians involved in the fraud scheme, pleaded guilty before Judge Cox to one count of conspiracy to commit health care fraud and wire fraud. Alam additionally pleaded guilty to an additional count of structuring. The defendants are scheduled to be sentenced in July 2016. All five defendants were charged in an indictment returned on June 11, 2015.
According to admissions made as part of their guilty pleas, Tahir, Javed and Tariq paid kickbacks, bribes and other inducements to Alam, Ataya and other physicians, as well as to marketers and patient recruiters, for beneficiary referrals to companies they owned, including A Plus Hospice and Palliative Care, At Home Hospice and At Home Network Inc. Tahir, Javed and Tariq admitted that they would then bill Medicare for home care and hospice services that were often medically unnecessary and not provided.
Alam was the top referring physician to the entities owned by the defendants and as such, was responsible for millions in Medicare reimbursements, he admitted. As part of his guilty plea, Alam admitted that he received kickbacks and other inducements from the owners of At Home Network in exchange for home health referrals. Alam bribed his patients into accepting services from At Home Network by providing them with medically unnecessary controlled substance prescriptions both personally and through unlicensed individuals, he admitted. Co-owner Tariq admitted that he knew about Alam’s controlled substances bribes to patients. Alam also instructed others to falsify patient files to hide the fact that the prescriptions were medically unnecessary, according to his plea agreement.
Ataya was the second-highest referring physician to At Home Network and the top referring physician to At Home Hospice. As part of his guilty plea, he admitted that he accepted kickbacks and other inducements in exchange for home health and hospice referrals. Ataya also admitted that the Tahir-associated companies would submit false billing based on his referrals for purported home health and hospice services, when, at times, these services were neither medically necessary nor provided.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan. Trial Attorneys Shubhra Shivpuri, Malisa Dubal and Tom Tynan of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Flint Man Indicted on Perjury Charges Following His Testimony in Federal CourtRead the Press Release
A 25-year-old Flint man was arraigned on March 18 on a two-count indictment charging him with making false declarations before a court, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by ATF Special Agent in Charge S. Robin Shoemaker.
The indictment alleges that Dion A. Polk, II, testified falsely in the federal trial of Rashad J. Jones on January 20 in Flint. Jones, a five-time felon, was on trial before U.S. District Judge Terrence G. Berg on charges of being a felon in possession of ammunition. Polk falsely testified at the trial that he, not Jones, possessed the ammunition magazine recovered by the police on June 29, 2015. Polk further falsely testified that the ammunition magazine pertained to a firearm that he owned and possessed on that same day.
Additional evidence at trial, however, revealed that the firearm was owned by another individual at the time of the charged offense, and that Polk had purchased the firearm only recently, just weeks before the start of Jones’ trial.
“Lying under oath is a serious offense because the justice system depends on truthful testimony,” McQuade said. “Witnesses who commit perjury and obstruct justice will be prosecuted and held accountable for their crimes.”
“ATF along with our state and local partners will aggressively investigate violent crimes to include those that falsify information to bring those accountable for violating the laws to justice,” said ATF Special Agent in Charge S. Robin Shoemaker.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed not guilty unless convicted at trial by a jury.
If convicted, Polk faces a maximum statutory penalty of five years in federal prison for each count.
The case is being prosecuted by the Flint Branch of the United States Attorney’s Office with the assistance of special agents from the ATF.
Detroit-Area Physician Sentenced to 45 Months in Prison for Role in $5.7 Million Medicare Fraud SchemeRead the Press Release
A Detroit-area doctor who prescribed medically unnecessary controlled substances and billed for office visits and diagnostic testing that never took place was sentenced to 45 months in prison today for his role in a $5.7 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Region and Special Agent in Charge Jarod J. Koopman of Internal Revenue Service-Criminal Investigation (IRS-CI) Detroit Field Office made the announcement.
Laran Lerner, 59, of Northville, Michigan, was sentenced today by U.S. District Judge Victoria A. Roberts of the Eastern District of Michigan, who also ordered Lerner to pay $2,789,409 in restitution. Lerner pleaded guilty on Aug. 31, 2015, to one count of health care fraud and one count of structuring cash transactions to avoid bank reporting requirements.
According to admissions made as part of his plea agreement, Lerner lured patients into his clinic with prescriptions for medically unnecessary controlled substances and then caused Medicare to be billed for a variety of unnecessary prescriptions, diagnostic tests and office visits to make it appear as though he was providing legitimate medical services. Lerner admitted that in reality, the controlled medications were simply used to facilitate and conceal his scheme to steal millions of dollars from the Medicare program. According to Lerner’s plea agreement, Medicare was billed $5,748,237 as a result of Lerner’s unnecessary prescriptions, office visits and diagnostic testing.
Lerner also admitted that he structured cash deposits he received as a result of his scheme in $5,000 increments on consecutive days at various branch locations in the Detroit area in order to avoid the requirement that domestic banks file a currency transaction report with the Secretary of the Treasury for all currency transactions over $10,000. According to his plea agreement, for example, in April 2013, Lerner deposited $70,000 in cash by making deposits of $5,000 on 14 different days.
As part of the plea agreement, Lerner agreed to permanently surrender his Drug Enforcement Administration controlled substance registration and agreed to not to re-apply for this license in the future, and agreed that were he granted any application from any agency to prescribe or dispense controlled substances, it would be against the public interest.
The FBI, HHS-OIG and IRS-CI investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan. Fraud Section Trial Attorney Elizabeth Young is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Detriot Area Doctors Charged with Illegal Distribution of Prescription DrugsRead the Press Release
A superseding indictment was unsealed today charging three doctors and seven other individuals with conspiracy to illegally distribute prescription drugs, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Acting Special Agent in Charge David A. Grant, U.S. Drug Enforcement Administration (DEA), Detroit Field Division and Jared Koopman, Special Agent in Charge, Internal Revenue Service, Criminal Investigation.
Charged in the superseding indictment are:
Dr. Boris Zigmond, D.C., 50, of West Bloomfield
Dr. Jennifer Franklin, M.D., 39, of Harrison Township
Dr. Carlos Godoy, M.D., 78, of Farmington Hills
Rodney Knight, 32, of Highland Park
Tara Marcia Jackson, 53, of Detroit
Sashanti Morris, 44, of Detroit
Anna Fradlis, 61, of West Bloomfield
Maryna Pitsenko, 46, of Sterling Heights
Svetlana Sribna, 64, of Sterling Heights
Marina Jacobs, 44, of West Bloomfield
The superseding indictment alleges that from January 2013 through May 2015, Zigmond was the leader of a large-scale prescription drug trafficking organization whose purpose was to secure written prescriptions from medical doctors for controlled substances, primarily Roxicodone, and its generic equivalent Oxycodone, that could be filled at various pharmacies. According to the superseding indictment, Zigmond’s organization distributed approximately 1 million pills and grossed approximately $5.7 million from trafficking these pills on the illegal street market. The prescriptions for these highly addictive drugs were written outside the course of usual medical practice and for no legitimate purpose.
The superseding indictment further alleges that Zigmond, a chiropractor, did not see patients himself or write prescriptions but rather used co-defendants Rodney Knight, Tara Jackson and Sashanti Morris as “marketers” or “patient recruiters” who would pay money directly to Zigmond or Zigmond’s assistants, co-defendants Anna Fradlis, Maryna Pitsenko, Svetlana Sribna and Marina Jacobs who would then schedule appointments with co-defendants Dr. Franklin and Dr. Godoy. Each appointment cost $500-$600 cash and the “marketer” paid the money before a phony patient was seen by either Franklin or Godoy.
“Diversion of prescription pills to the street market promotes the addiction to painkillers that leads to overdose deaths,” McQuade said. “We are focusing on charging doctors, pharmacists and the networks that are putting this poison on the streets.”
DEA Acting Special Agent in Charge David A. Grant stated, “The arrests today are just one example of DEA's determination and commitment to combat the troubling prescription drug abuse problem in this country. The doctors involved in this investigation abused their positions of trust and jeopardized the lives of many individuals by participating in the conspiracy to distribute nearly a million dosage units of controlled substances onto the streets of southeast Michigan and beyond. These indictments should make it clear that the DEA and our law enforcement partners are focused on investigating and pursuing those that are illegally diverting prescription drugs into our communities.”
“Physicians who prescribe drugs to those without a medical purpose but rather for the known purpose of selling them on the street is extremely harmful to our communities,” said Special Agent in Charge Jarod Koopman, IRS- CI. “Where the law allows, we will continue to follow the money and seize the proceeds from those that profit at the expense of our neighborhoods.”
According to the superseding indictment, Zigmond set up office suites in several different locations in Oak Park, where co-defendants Franklin and Godoy would see fake patients and write the prescriptions. Franklin, Godoy, Fradlis, Pitsenko, Sribna and Jacobs were paid by Zigmond.
In addition to the drug conspiracy charge, Zigmond was also charged with money laundering and Knight was also charged with being a felon in possession of a firearm. The United States will pursue forfeiture of all proceeds and property traceable to the offenses charged.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
The case was investigated by Special Agents of the DEA and IRS. The case is being prosecuted by Assistant U.S. Attorneys Wayne Pratt and Jonathan Grey.
Doctor Sentenced to 84 Months in Prison for Distributing Prescription DrugsRead the Press Release
A doctor from Superior Township, Michigan was sentenced yesterday to 84 months in prison for participating in a conspiracy to distribute prescription pills illegally, U.S. Attorney Barbara L. McQuade announced. McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division. Dr. Abbey Akinwumi, age 55, was sentenced by U.S. District Judge Nancy Edmunds. Dr. Akinwumi operated a medical clinic in Detroit, Michigan. During his plea, he admitted that he issued more than 500,000 dosage units of Roxicodone (oxycodone HCl), approximately 300,000 dosage units of Opana (oxymorphone) and more than 2 million dosage units of Hydrocodone outside the course of legitimate medical practice and without any medical justification. The prescriptions were issued after either a cursory examination or without any examination at all. Dr. Akinwumi then billed Medicare, Medicaid and private insurance companies for medically unnecessary procedures, to include drainage of an abscess and wound repair. Once the prescriptions were filled, the pills were sold on the street market. Oxycodone HCl, oxyorphone, and hydrocodone are all scheduled II controlled substances that may be prescribed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. They are powerful and highly addictive drugs and are increasingly abused because of their potential to provide a heroin-like euphoria. In addition to imprisonment, Dr. Akinwumi was ordered to forfeit various assets. “More people die in America every year from prescription drug overdoses than from overdoses of all other drugs combined,” McQuade said. “In addition, prescription drug addiction has led to resurgence in heroin use. Physicians who divert prescription drugs to the street market are contributing to this epidemic, and we are focusing our enforcement efforts on stopping them.” "Dr. Akinwumi's actions were reprehensible," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "Not only were his acts a betrayal of his profession, but he did great disservice to insurers, to patients, and to those whose addictions he help perpetuate." The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Regina R. McCullough. She was assisted by Assistant U.S. Attorney Julie Beck of the Forfeiture Section.Detroit One Collaboration Leads to Expanded Racketeering Indictment of Violent Gang Members from Detroit’s EastsideRead the Press Release
The work of the Detroit One partnership of local, state and federal law enforcement resulted in the indictment today of 12 more members of Seven Mile Bloods street gang, United States Attorney Barbara L. McQuade announced.
Joining McQuade in the announcement were Acting Special Agent in Charge David A. Grant, Drug Enforcement Administration, Detroit Division, Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, and Chief James Craig, Detroit Police Department.
The superseding indictment unsealed today adds charges for racketeering, murder in aid of racketeering, firearms violations and related offenses. The previous indictment had charged three other individuals.
According to the superseding indictment, the gang operates on the east side of Detroit, between Gratiot Avenue and Kelly Road and between Seven and Eight Mile Roads. Seven Mile Bloods or “SMB” members have claimed this area as their territory and refer to it as the “Red Zone.” The area is in zip code 48205, which SMB members refer to as “4-8-2-0-Die” in some of their rap lyrics.
The indictment alleges an ongoing gang war between the Seven Mile Bloods and an alliance of other gangs operating on Detroit’s east side stemming from a murder that occurred in July 2014. During the past 18 months, these rival gangs have been violently attacking one another and have posted respective “hit lists” on social media. This shooting war has led to increased homicides and non-fatal shootings on Detroit’s east side.
The indictment also stems from collaborative law enforcement efforts to dismantle the opioid pipeline from Detroit to other states, alleging incidents in which SMB members were arrested in Charleston, West Virginia, in connection with drug trafficking.
Under the Detroit One Initiative, investigators were able to bring together separate probes into various members of this organization and its criminal activities into one encompassing investigation. Partners include the Detroit Police Department Gang Intelligence Unit, the FBI Violent Gang Task Force, which consists of representatives of Detroit Police Department, U.S. Border Patrol, Homeland Security Investigations, Customs and Border Patrol, Michigan Department of Corrections and Michigan State Police, with the cooperation of the ATF and DEA.
Charged today are:
• Billy Arnold, a/k/a “B-Man,” “Berinzo,” “Killa,” 29, of Detroit, with RICO conspiracy and multiple counts of murder in aid of racketeering; attempted murder in aid of racketeering; assault with a dangerous weapon in aid of racketeering; use of a firearm during, and in relation to, a crime of violence resulting in death; possession of a firearm during, and in relation to, a crime of violence; and felon in possession of a firearm;
• Steven Arthur, Jr., a/k/a “Steve-O,” 26, of Detroit, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence; and felon in possession of a firearm; • Eugene Fisher, a/k/a “Fist,” 35, of Detroit, with RICO conspiracy; attempted murder in aid of racketeering; assault with a dangerous weapon in aid of racketeering; use of a firearm during, and in relation to, a crime of violence; possession of a firearm during, and in relation to, a crime of violence; and felon in possession of a firearm;
• Corey Bailey, a/k/a “Sonny,” “Cocaine Sonny,” 28, of Detroit, with RICO conspiracy; murder in aid of racketeering; attempted murder in aid of racketeering; assault with a dangerous weapon in aid of racketeering; use of a firearm during, and in relation to, a crime of violence; and possession of a firearm during, and in relation to, a crime of violence;
• Quincy Graham, a/k/a “Dub,” “Q,” 32, of Detroit, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence; and felon in possession of a firearm;
• Robert Brown II, a/k/a “R.O.,” 33, of Warren, Michigan, with RICO conspiracy and possession of a firearm during, and in relation to, a crime of violence;
• Jerome Gooch, a/k/a “Rome,” “Dada,” 30, of Detroit, Michigan and Charleston with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence;
• Michael Rogers, a/k/a “Smoke,” “Ace,” 33, of Eastpointe, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence;
• Derrick Kennedy, a/k/a “Dip,” 29, of Warren, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence;
• Devon Patterson, a/k/a “Duck,” “Sosa,” 30, of Detroit, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence;
• Christopher Owens, a/k/a “Baby O,” “Cee,” 29, of Charleston, West Virginia, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence;
• Jeffery Adams, a/k/a “Brick,” “Product,” 26, of Detroit, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence;
• Arlandis Shy, a/k/a “Grymee,” “VIL,” 26, of Clinton Township with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence;
• Anthony Lovejoy, a/k/a “PT,” 33, of Charleston, West Virginia and Buckeye, Arizona, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence; and
• Diondre Fitzpatrick, a/k/a “D-Nice,” 26, of Harper Woods, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence.
“When law enforcement became aware of the violent gang activity in this neighborhood, the Detroit One partnership poured resources into dismantling the gangs that are responsible,” McQuade said. “We are using our combined resources to restore peace to this neighborhood for its residents.”
DEA Acting Special Agent in Charge David A. Grant stated, “DEA will continue to work hand in hand with the United States Attorney’s Office and the members of Detroit One in the continuing effort to reduce the violence associated with drug trafficking in all areas of Detroit. Today’s indictment demonstrates solid success in the effort to dismantle the Seven Mile Bloods, and to curtail some of the inevitable violence stemming from their trafficking in drugs on Detroit’s east side.”
"The Detroit One initiative continues to be a valuable partnership for the FBI, and for the city of Detroit," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "The dismantling of violent gangs in this city must remain a priority, and we remain fully committed to that end. These gang arrest operations are absolutely necessary in order to make Detroit a more livable, workable, and secure city."
Detroit One is a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working collaboratively, local, state, and federal law enforcement is striving to maximize its ability to identify and arrest the persons and groups initiating the violence in Detroit. This indictment is the latest in a string of indictments from the United States Attorney’s Office and Wayne County Prosecutor’s Office over the last two years involving violent street gangs in the city of Detroit. Most significantly, Detroit has seen a reduction in homicides every year since the Detroit One collaboration began in 2013
Novi Restaurant Owner and Wife Indicted for Harboring Undocuments ImmigrantsRead the Press Release
The owner of a Novi, Michigan, restaurant and his wife were indicted on charges of harboring undocumented immigrants forthe purpose of commercial advantage and private financial gain and conspiracy to harbor undocumented immigrants for the purpose of commercial advantage and private financial gain, announced United States Attorney Barbara L. McQuade. McQuade was joined in the announcement by Special Agent in Charge Marlon Miller, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and Chief David Molloy, Novi Police Department. Roger Tam, 55, and his wife, Ada Lei, 48, of Novi were charged in an indictment returned yesterday by a federal grand jury in Detroit. The indictment is the latest development in an ongoing probe by the Novi Police Department and HSI with assistance from ICE’s Enforcement and Removal Operations (ERO), U.S. Customs and Border Protection’s Border Patrol and the Oakland County Sherriff’s Office. An investigation was launched after HSI special agents and officers with the Novi Police executed federal and state search warrants at the Novi residence, where five Mexican nationals died as a result of a Jan. 31 fire. Department of Homeland Security databases revealed that all five men were illegally present in the United States and had entered in the lastsix months. As alleged in court records, Tam hired five Mexican nationals to work at Kim’s Garden in Novi. The Mexican nationals were provided housing in the Novi home owned by Tam and Lei, and were transported to and from the restaurant, as a condition of their employment. Tam told a Novi detective at the scene of the fire that the deceased individuals were employees at Kim’s Garden whom he paid in cash and allowed to reside in the home’s basement, where smoke detectors had been disabled. If found guilty, Tam and Lei face up to 10 years in prison and a $250,000 fine. An indictment is only a charge and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.Novi Restaurant Owner Arrested for Harboring Undocumented Immigrants following Deaths of WorkersRead the Press Release
The owner of a Novi, Michigan, restaurant was taken into custody after a criminal complaint was filed in federal court charging him with harboring undocumented immigrants, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge Marlon Miller, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and Chief David Molloy, Novi Police Department.
Roger Tam, 55, and his wife, Ada Lei, 48, of Novi were charged in the complaint.
The arrest is the latest development in an ongoing probe by the Novi Police Department and HSI with assistance from ICE’s Enforcement and Removal Operations (ERO), U.S. Customs and Border Protection’s Border Patrol and the Oakland County Sherriff’s Office.
An investigation was launched after HSI special agents and officers with the Novi Police executed federal and state search warrants at the Novi residence, where five Mexican nationals died as a result of a Jan. 31 fire. Department of Homeland Security databases revealed that all five men were illegally present in the United States and had entered in the last six months.
The criminal complaint alleges that Tam hired five Mexican nationals to work at Kim’s Garden in Novi. The Mexican nationals were provided housing in the Novi home owned by Tam and Lei, and were transported to and from the restaurant, as a condition of their employment. The criminal complaint further alleges Tam told a Novi detective at the scene of the fire that the deceased individuals were employees at Kim’s Garden whom he paid in cash and allowed to reside in the home’s basement, where smoke detectors had been disabled.
“I am proud of the efforts and professionalism of our investigative team who worked selflessly with our federal partners in bringing this case to fruition,” said David Molloy, City of Novi’s public safety director and chief of police. “What warranted this investigation was senseless on so many counts; from the tragic loss of five lives to the skirting of our nation’s immigration system. In all my years of law enforcement, I have never witnessed such blatant disregard for respect of human life. As the health, safety and welfare of Novi residents and businesses is our main concern, activities such as this will not be tolerated and will be prosecuted to the full extent the law.”
"My immediate sense is that this extremely tragic loss of life could have been avoided," said Marlon Miller, special agent in charge of HSI Detroit. "HSI is committed to aggressively investigating those who harbor undocumented immigrants and place personal profit ahead of public safety. HSI simply will not turn a blind eye to employers who shirk their responsibility to maintain a legal workforce."
“This case is a sobering reminder of the dangers employers create when they harbor undocumented immigrants,” McQuade said. “In order to obtain a competitive advantage by paying lower wages and evading taxes, some employers will subject undocumented workers to poor living conditions and even dangerous situations.”
According to the complaint, employment and financial records for Kim’s Garden revealed no indication that the five individuals were legally employed at the restaurant.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
If found guilty, Tam and Lei face up to 10 years in prison and a $250,000 fine.
Detroit One Collaboration Leads to Indictment of 12 Members of Local Chapter of National Violent GangRead the Press Release
The collaboration of local, state and federal law enforcement under the Detroit One program has led to the indictment and arrests of 12 members of the Crips street gang in northwest Detroit, United States Attorney Barbara L. McQuade announced today. Joining McQuade in the announcement was Special Agent in Charge Robin Shoemaker, Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division and Chief James Craig, Detroit Police Department. According to the indictment, the Detroit chapter of the “Rollin 60s Crips” is a branch of the national street gang founded in Los Angeles in the mid-1970s. Starting around 2006, a Detroit set of the Rollin 60s was created, and now has approximately 150 members. The indictment alleges that the Rollin 60s Detroit chapter is a violent organization responsible for assaults, robberies, carjackings and the unlawful possession and trafficking of firearms and narcotics in the Detroit metropolitan area during the last nine years. The gang uses violence to avenge acts of rival gang members, to intimidate witnesses and to advance members’ positions within the gang. Under the Detroit One initiative, and through the lead efforts of ATF’s Comprehensive Violence Reduction Partnership (“CVRP”) and the FBI’s Violent Crime Task Force, law enforcement has identified the leaders and key members of this organization, and charged 12 individuals by indictment in federal court. The CVRP includes representatives of the Detroit Police Department, Michigan State Police and Michigan Department of Corrections. Among those charged today are: • Jerome Hamilton 23, of Detroit, charged with Racketeer Influenced and Corrupt Organizations Act (“RICO”) conspiracy, assault with a dangerous weapon in aid of racketeering and using a firearm during a crime of violence; • Darriyon Mills, 24, of Detroit, charged with RICO conspiracy, assault with a dangerous weapon in aid of racketeering, carjacking and using a firearm during a crime of violence; • Jonathan Barber, 24, of Detroit, charged with RICO conspiracy, assault with a dangerous weapon in aid of racketeering, and carrying and using an explosive device to commit a felony; • Deaires Foster, 22, of Irondale, Alabama, charged with RICO conspiracy; • Martel Strong, 26, of Detroit, charged with RICO conspiracy; • Timothy Price, 26, of Detroit, charged with RICO conspiracy; • Sadeisha Johns, 30, of West Bloomfield, charged with RICO conspiracy; • Soumo Kennedy, 22, of Detroit, charged with RICO conspiracy, carjacking and using a firearm during a crime of violence; • Brandon Kennedy, 22, of Detroit, charged with RICO conspiracy; • Charles Anthony Smith, 31, of Windsor, Ontario, Canada, charged with RICO conspiracy; • Jermell Julius Coleman, 35, of Detroit, charged with RICO conspiracy; assault with a dangerous weapon in aid of racketeering, and using a firearm during a crime of violence; • William Steele, 34, of Charlotte, North Carolina, charged with RICO conspiracy. “The Detroit One partners are systematically dismantling the most violent street gangs in Detroit,” McQuade said. “Our effort is relentless. We believe that by removing the gang members who are committing violent crime, we can provide our neighborhoods with the public safety we should all expect and deserve.” “These individuals had no regard for the welfare of others,” said ATF Detroit Special Agent in Charge S. Robin Shoemaker. Their brazen display of violence carried out with assaults, robberies, carjacking, the unlawful possession and trafficking of firearms and narcotics in and around the Detroit metropolitan area is over. ATF, working closely with DPD, MSP, MDOC in our CVRP initiative, will see to it that these dangerous individuals and those who will take their place are removed from our streets. No longer will they threaten the safety of our citizens.” "As promised the Detroit One partners continue to disrupt and bring to an end the atrocities committed against our citizens by such a violent gang," said Chief James Craig. "The efficacy of this program is rooted in the belief that our citizens and neighborhoods deserve to be free of such heinous acts." "Today's announcement of the indictments and arrests of these twelve individuals demonstrates the continuing commitment of Detroit area Law Enforcement, as a united front, to substantially chip away at the ability of violent gangs to operate in our community," said David P. Gelios, Special Agent in Charge, FBI - Detroit Division. "The collective strength of the agencies involved in the Detroit One Program represents a formidable deterrent to violent gangs and criminal enterprises, and continues to result in the improvement in the quality of life in Detroit." By working collaboratively, local, state and federal law enforcement is striving to maximize its ability to identify and arrest the persons and groups initiating the violence in Detroit. This indictment is the latest in a string of charges from the United States Attorney’s Office and Wayne County Prosecutor’s Office during the last two years involving violent street gangs in the city of Detroit, including: • Nine members of the Bounty Hunter Bloods street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering; • Thirteen members of the Latin Counts street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering; • Fourteen members of the Phantom Outlaw Motorcycle Club / Vice Lords street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering; • Four members of the Vice Lords in state court for armed robbery and a Vice Lord leader charged under the federal street gang statute for his role in that armed robbery; • Three members of the Band Crew street gang charged under the Michigan gang felony statute for violent acts in furtherance of their gang activities and eight members of the Band crew for federal racketeering conspiracy and other violent acts in furtherance of racketeering; • Ten members of the Related Through Money street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering; and • Eight members of the Traveling Vice Lords for federal racketeering conspiracy and other violent acts in furtherance of racketeering. These charges are just some of the tangible and significant results of this joint effort. Most significantly, Detroit has seen a reduction in homicides every year since the Detroit One collaboration began in 2013, and a 24 percent total reduction since 2012. Seven of the twelve defendants were arrested today and will be making their initial appearance in federal court in Detroit this afternoon. An indictment is only a charge and is not evidence of guilt. A defendant is presumed not guilty unless convicted at trial by a jury.