Eastern District of Michigan
Press releases recorded for this federal judicial district.
Dearborn Heights Resident Charged with Illegal Possession of FirearmRead the Press Release
A 21-year-old Dearborn Heights man was charged in a criminal complaint with possession of a firearm by an unlawful user of a controlled substance, United States Attorney Barbara L. McQuade announced today. McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division. According to the complaint, on October 5, 2015, Khalil Abu-Rayyan purchased a .22 caliber revolver from a sporting goods store in Dearborn Heights. At the time of purchase, Abu-Rayyan made a false statement on ATF Form 4473, stating “no” in response to a question that asks whether the purchaser is an unlawful user of a controlled substance. On November 15, 2015, Abu-Rayyan attempted to purchase another pistol from a different sporting goods store, however, due to pending state charges, was unable to purchase the pistol. On that occasion, Abu-Rayyan again falsely stated on ATF Form 4473 that he was not an unlawful user of a controlled substance. Abu-Rayyan subsequently admitted to law enforcement that he was an habitual user of marijuana during the time period in which he purchased the .22 caliber revolver. Abu-Rayyan has also since pleaded guilty to possession of marijuana in a state case, and is currently awaiting trial in state court on the charge of carrying a concealed weapon in an automobile. According to the complaint, photographs and postings on Abu-Rayyan's social media sites, as well as conversations with an undercover FBI employee, indicated his support for the Islamic State of Iraq and Levant, a designated foreign terrorist organization, and his desire to conduct a martyrdom operation, including with the use of firearms. On February 4, 2016, FBI agents arrested Abu-Rayyan on charges of being an unlawful user of a controlled substance (marijuana) in possession of a firearm which travelled in interstate commerce. Abu-Rayyan appeared in federal court in Detroit before United States Magistrate Elizabeth Stafford, and was assigned appointed counsel and ordered temporarily detained pending a hearing. That hearing was scheduled for today, but it was adjourned at the request of Abu-Rayyan because he has recently retained an attorney. The hearing is now scheduled for February 10. "Threats of this nature, regardless of where they originate, or who they target, are always taken seriously," said David P. Gelios, Special Agent in Charge, FBI - Detroit Division. "The FBI acted quickly and comprehensively to investigate and arrest Mr. Rayyan upon the receipt of information that he posed a potential public safety threat. The investigative actions prior to his arrest included 24/7 surveillance to ensure there was a prompt response to any attempted violent act." If convicted of the charged offense, Abu-Rayyan faces a term of up 10 years in federal prison. A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.Former EAA Principal and Vendor Plead Guilty to Conspiracy to Commit BriberyRead the Press Release
Kenyetta Wilbourn Snapp, 40, a former Educational Achievement Authority (“EAA”) principal of Denby High School and later of Mumford High School, pleaded guilty today to conspiracy to commit federal program bribery and federal income tax evasion charges, United States Attorney Barbara L. McQuade announced. Glynis Thornton, 53, an after-school tutoring vendor, pleaded guilty to conspiracy to commit federal program bribery.
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.
Snapp admitted to selecting Thornton’s company, Making a Difference Everyday (“M.A.D.E.”), 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.
Snapp entered into a plea agreement that calls for a sentence of between 37-46 months in custody. Thornton entered into a plea agreement that calls for a sentence of between 24-30 months in custody.
"Public corruption crimes are always disappointing, but it is even more heartbreaking when a school principal takes bribes," McQuade said. "Squandering school funds in exchange for bribes is especially disturbing in this case because Detroit's school children already face so many financial challenges." McQuade said.
"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 commit crimes, 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.
Two Individuals Indicted in Fraud Scheme Involving Distribution of Infectious Human RemainsRead the Press Release
A husband and wife from Grosse Pointe Park, Michigan, have been charged in an indictment with wire fraud, transportation of hazardous material, and false statements in an alleged scheme involving the distribution of body parts, some that tested positive for diseases, including HIV and hepatitis, 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; Regional Special Agent-in-Charge Thomas J. Ullom, U.S. Department of Transportation - Office of Inspector General; Officer in Charge Elizabeth Harton of the Centers for Disease Control and Prevention, Division of Global Migration & Quarantine and Arizona Attorney General Mark Brnovich. Indicted were Arthur Rathburn, 62 and Elizabeth Rathburn, 55. The indictment was unsealed today upon the arrest of the defendants. As alleged in the 13-count indictment, Arthur Rathburn and Elizabeth Rathburn were the owners and operators of International Biological, Inc. (“IBI”). IBI’s primary function was renting human body parts, such as heads and torsos, to customers who used the remains for medical or dental training. The Rathburns participated in a scheme to defraud in which IBI obtained donated bodies and body parts from suppliers, which IBI would then typically dismember and rent out to customers for medical or dental training. Arthur and Elizabeth Rathburn knew that the donors of a number of these bodies had died of an infectious disease, or that the bodies had tested positive for an infectious disease. IBI sometimes obtained diseased remains from their suppliers at a reduced cost, due to the fact that end users of human remains generally reject infectious bodies and body parts for use in medical or dental training. It was part of the scheme that the Rathburns would provide human remains to IBI’s customers, falsely representing to those customers that the remains were free of certain infectious diseases. The Rathburns were aware that IBI’s customers would not accept remains infected with certain diseases. The scheme included directly profiting from infectious remains supplied to unwitting customers in violation of contractual agreements and failing to disclose to customers that IBI ignored industry standard precautions to prevent potential cross-contamination between infectious and non-infectious remains. The indictment further alleges that Arthur Rathburn willfully caused to be delivered hazardous material regulated by the Department of Transportation, namely a human head of an individual known to have died from bacterial sepsis and aspiration pneumonia, to Delta Cargo, an air carrier, for transportation in air commerce in violation of federal regulations. In violation of these regulations, the human head was packaged in a trash bag placed within a camping cooler. Seven other human heads were also part of the shipment and packed in the same manner. Large quantities of liquid blood were found within the coolers. Furthermore, Arthur Rathburn was charged with making three false statements connected to this shipment. “This alleged scheme to distribute diseased body parts not only defrauded customers from the monetary value of their contracts, but also exposed them and others to infection,” McQuade said. “The alleged conduct risked the health of medical students, dental students and baggage handlers.” “These indictments represent one step in the FBI’s larger investigation into violations of federal law by individuals working within the poorly regulated willed-body-to-science industry,” said David P. Gelios, Special Agent in Charge, FBI Detroit Division. “We recognize that thousands of donor families, medical doctors and affiliated personnel across the country have been adversely affected by these illegal acts. This investigation does not stop here. We continue to work with our state and federal partners to conduct a full and rigorous investigation. And, while all of our partnerships on this case have been valuable, special thanks is due to the staff of the CDC’s Detroit Quarantine Station, without whose extensive help, this investigation would have been greatly hampered." Martin S. Cetron, MD, Director, Division of Global Migration, Centers for Disease Control and Prevention said, "The CDC is pleased to have provided its technical assistance on public health concerns related to the safe handling, packaging, and import of human remains that pose a potential threat to human health. U.S. quarantine stations are part of a comprehensive system that serves to limit the introduction and spread of infectious diseases into the United States. We continue to support our law enforcement partners, other federal agencies, and state and local entities on this important public health matter." “The indictment brought against Arthur Rathburn and Elizabeth Rathburn for allegations related to wire fraud, transportation of HAZMAT, and false statements demonstrates that ensuring the safety of the Nation’s transportation system remains a high priority for the Office of Inspector General (OIG), the Department of Transportation (DOT) and its Pipeline and Hazardous Materials Safety Administration,” said Thomas J. Ullom, DOT OIG Regional Special Agent-in-Charge. “Working with our law enforcement and prosecutorial colleagues, we will continue our efforts to uncover illicit hazardous materials shipments, whether that be body parts with infectious diseases or otherwise, and prevent their use and punish those who seek to compromise the integrity of DOT’s safety program.” "These federal indictments are a significant step in our pursuit of justice for donors' families and medical staff affected by these despicable acts," said Arizona Attorney General Mark Brnovich. "Last month, Arizona successfully convicted a defendant involved in this multi-state investigation. Our team will continue to work with the Department of Justice to ensure that everyone involved in these illegal acts is appropriately prosecuted." 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, the Rathburns face a maximum statutory penalty of twenty years in prison for each of nine counts of wire fraud. Arthur Rathburn also faces a maximum of five years in prison for one charge of Transporting Hazardous Material under 49 U.S.C. §463 and a maximum of five years in prison for each of three counts charging him with making false statements to the United States Government. The investigation in this case was handled by the Federal Bureau of Investigation, the Centers for Disease Control and Prevention, the Arizona Attorney General’s Office, and the U.S. Department of Transportation, Office of Inspector General with support from U.S. Customs and Border Protection and Homeland Security Investigations. Special thanks are also due to the Wayne County Medical Examiner’s Office for their critical assistance. The case is being prosecuted by Assistant U.S. Attorneys John K. Neal and Timothy J. Wyse.Six Vice Lords Plead Guilty to RICO Conspiracy and Gang-Related ShootingsRead the Press Release
DETROIT – Six members of the Vice Lords street gang pleaded guilty this week to racketeering and firearms offenses for their roles in the shootings of four members of a family. The guilty pleas are the result of the collaborative efforts of law enforcement and the community to reduce homicide and other violent crime under the Detroit One program. The announcement was made by U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Detroit Mayor Mike Duggan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Chief James Craig of the Detroit Police Department. In 2015, Antonio Clark, Aramis Wilson, Tyrone Price, Jonathan Kinchen, Kojuan Lee, Kirshean Nelson, Dion Robinson and Kenneth Smith, were indicted on charges of RICO conspiracy and other racketeering and firearms charges relating to the May 7, 2015, gang-related shooting of four members of a family. The indictment charges that, from 2011 through 2015, the defendants trafficked in controlled substances, including marijuana, Xanax, and ecstasy, at locations around the Detroit metropolitan area, including in Detroit and at Northland Mall in Southfield, Michigan. According to the indictment, the Vice Lords is a national gang engaged in a variety of crimes, including murder, robbery, narcotics trafficking and witness intimidation. The indictment alleges that the Vice Lords’ leaders are located in Chicago and Detroit, and that 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. The indictment further alleges that members who seek to leave or withdraw from the gang often endure a physical beating, known as a “beat out,” by multiple Vice Lord members, or are targeted for killing, known as a “green light.” According to court documents, leading up to the May 7, 2015 shooting, members of the Vice Lords, acting at the direction of Kenneth Smith and others, searched for two brothers that had left, or had attempted to leave, the Vice Lords, as part of a plan to harm those individuals. On May 7, 2015, Vice Lords members Antonio Clark, Aramis Wilson, Tyrone Price, Jonathan Kinchen, Kojuan Lee, Kirshean Nelson, and Dion Robinson, traveled together to the intended victims’ house in multiple cars. These Vice Lord members first met at Kenneth Smith’s house to discuss their plans. They gathered firearms, including an AK-47 assault rifle, to assist in their plans. After a brief confrontation with family members, Clark opened fire with an AK-47 hitting four victims. The indictment charged these Vice Lords members with aiding and abetting one another in the shooting of the four family members after firing more than two dozen times at the family. All four victims suffered gunshot wounds, but are recovering. On January 25, 2016, Aramis Wilson, aka “Ace,” 25, of Detroit, pleaded guilty to two counts of Assault with a Dangerous Weapon in Aid of Racketeering, and one count of Use and Carry of a Firearm During, and in Relation to, a Crime of Violence. The firearm charge carries a mandatory minimum sentence of ten years in prison. On Tuesday, January 26, 2016, Kirshean Nelson, 19, of Detroit, pleaded guilty to one count of RICO conspiracy. On Wednesday, January 27, 2016, Antonio Clark, aka “Cheeto,” 26, of Detroit, pleaded guilty to two counts of Attempted Murder in Aid of Racketeering, and one count of Use and Carry of a Firearm During, and in Relation to, a Crime of Violence. The firearm charge carries a mandatory minimum sentence of ten years in prison. On Thursday, January 25, 2016, Kojuan Lee, aka “Juan,” 20, of Detroit, and Jonathan Kinchen, aka “Deago,” 22, of Detroit, each pleaded guilty to one count of RICO conspiracy. Also on Thursday, Tyrone Price, aka “Price,” 27, of Detroit, pleaded guilty to two counts of Assault with a Dangerous Weapon in Aid of Racketeering, and one count of Use and Carry of a Firearm During, and in Relation to, a Crime of Violence. The firearm charge carries a mandatory minimum sentence of ten years in prison. Dion Robinson is expected to plead guilty next week on certain charges. Kenneth Smith is currently a fugitive. Anyone with any information about Smith’s whereabouts is encouraged to call 313-234-5656. “The Detroit One partnership is focusing our efforts on combating gang violence,” McQuade said. “Gang members should take note that these recent cases demonstrate that the Detroit One strategy is permitting us to address gang violence with swift action and strong penalties. If any individual wants to leave gang life, we are here to help them do that safely.” "The significant arrests and prosecutions made by Detroit One make certain that the citizens of Detroit and the region can once again start to feel safe in their communities" said Chief James Craig. "We will maintain our focus and remain stead-fast in our pledge to bringing swift justice to all those who commit violent acts against our city." S. Robin Shoemaker, Special Agent in Charge of the Detroit Field Division of ATF said, “Countering firearms violence, particularly when it relates to violent street gangs remains one of ATF’s primary missions, when it comes to gun violence ATF will continue to work hand in hand with our Detroit One partners to ensure that those individuals’ who engage in violent criminal activity are removed from our neighborhoods. "These convictions represent the significant impact law enforcement can have on violent criminal enterprises when local, state, and Federal partners combine forces to address the violent gangs responsible for terrorizing our communities," said David P. Gelios, Special Agent in Charge, FBI - Detroit Division. "The quality of life in our community will remain closely aligned to our successful ongoing collective efforts to remove violent offenders from Detroit's streets." The charges relating to the May 7, 2015, shooting of the four family members are one component of the federal government’s prosecution of the Vice Lords street gang, which has led to the arrests and convictions of Vice Lords leaders and members over several years. In two trials in March and May 2015, juries convicted eight leaders and members of the PhantomOutlaw Motorcycle Club, many of whom also were leaders and members of the Vice Lords, for various crimes, including a September – October 2013 mass murder plot against a rival organization of the Phantoms, and the September 2013 shooting ofa member of another rival organization. Among those eight convicted defendants was Antonio Johnson, aka “MT” or “MisterTony,” the National President of the Phantoms and the “Three-Star General” over the Vice Lords in Michigan. On September 8, 2015, Johnson was sentenced to 35 years in prison. Also, on January 13, 2015, Christopher Tibbs, a.k.a. “Chief Fatah,” the leader of the Michigan branch of the Mafia Insane Vice Lords, was sentenced to almost 29 years in prison for his role in helping plan an armed robbery of a Little Caesars restaurant in Redford, Michigan, in September 2013. This case marked the first time that the federal criminal streetgang enhancement was charged in the Eastern District of Michigan. The case is being investigated by the ATF’s Comprehensive Violence Reduction Program, which includes representatives of the Detroit Police, Michigan State Police, and Michigan Department of Corrections, in coordination with the FBI and DEA. The case is being prosecuted by Assistant U.S. Attorneys Christopher Graveline and Mark Bilkovic of the Eastern Districtof Michigan, and Trial Attorney Joseph Wheatley of the Criminal Division’sSix Detroit Vice Lords Gang Members Plead Guilty to Racketeering Conspiracy and Gang-Related ShootingsRead the Press Release
Six members of the Vice Lords gang in Detroit pleaded guilty this week to various racketeering and firearms offenses based on their roles in the gang-related shooting of four individuals.
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, Detroit Mayor Mike Duggan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Chief James Craig of the Detroit Police Department made the announcement.
Antonio Clark, aka Cheeto, 26; Aramis Wilson, aka Ace, 25; Tyrone Price, aka Price, 27; Jonathan Kinchen, aka Deago, 22; Kojuan Lee, aka Juan, 20; Kirshean Nelson, 19; Dion Robinson, 37; and Kenneth Smith, 34, all of Detroit, were indicted for racketeering and firearms charges relating to the gang-related shooting of four members of a family on May 7, 2015.
On Jan. 25, 2016, Wilson pleaded guilty to two counts of assault with a dangerous weapon in aid of racketeering and one count of using and carrying of a firearm during and in relation to a crime of violence. On Jan. 26, 2016, Nelson pleaded guilty to one count of RICO conspiracy. On Jan. 27, 2016, Clark pleaded guilty to two counts of attempted murder in aid of racketeering and one count of using and carrying of a firearm during and in relation to a crime of violence. On Jan. 28, 2016, Lee and Kinchen each pleaded guilty to one count of RICO conspiracy; Price pleaded guilty to two counts of assault with a dangerous weapon in aid of racketeering and one count of using and carrying of a firearm during and in relation to a crime of violence.
According to the plea agreements, the Vice Lords is a national gang engaged in a variety of crimes, including murder, robbery, narcotics trafficking and witness intimidation. The defendants admitted that the Vice Lords’ leaders are located in Chicago and Detroit and that the gang is broken down into various “sets,” “decks” or “branches.” Members who seek to leave the gang oftentimes endure a physical beating by multiple Vice Lord members or are targeted for killing. The racketeering activity included, from 2011 through 2015, trafficking in controlled substances, including marijuana, Xanax and ecstasy, at locations in and around the Detroit metropolitan area, including at Northland Mall in Southfield, Michigan.
As admitted in the plea agreements, members of the Traveling Vice Lords set, acting at the direction of Smith and others, searched for two brothers who had left, or attempted to leave, the Vice Lords as part of a plan to harm those individuals. The defendants further admitted that on May 7, 2015, they and others met at Smith’s house to discuss their plan and collect firearms, including an AK-47 assault rifle, then traveled in multiple cars to the intended victims’ house. After a brief confrontation with the brothers’ family members, Clark opened fire with an AK-47, firing at the family more than two dozen times and hitting four victims.
The charges related to the shooting are a component of the federal government’s prosecution of the Vice Lords street gang, which has led to the arrests and convictions of Vice Lords leaders and members over several 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 of the Phantoms and the shooting of a member of another rival organization. Among those eight convicted defendants was Antonio Johnson, aka MT and Mister Tony, the national president of the Phantoms and the “three-star general” of the Vice Lords in Michigan, who was sentenced to 35 years in prison on Sept. 8, 2015.
On Jan. 13, 2015, Christopher Tibbs, aka Chief Fatah, the leader of the Michigan branch of the Mafia Insane Vice Lords, was sentenced to 346 months in prison for his role in helping plan an armed robbery. This case marked the first time that the federal criminal street gang enhancement was charged in the Eastern District of Michigan.
Kenneth Smith is currently a fugitive and anyone with any information about his whereabouts is encouraged to call the U.S. Marshals tip line at (313) 234-5656 and the ATF’s tip line at (313) 202-3400. The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The ATF’s Comprehensive Violence Reduction Program, which includes representatives of the Detroit Police, Michigan State Police and Michigan Department of Corrections, is investigating the case in coordination with the FBI and DEA. 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.
Detroit One Collaboration Leads to Racketeering Indictment of Violent Gang Member from Detroit's East SideRead the Press Release
The collaboration of local, state and federal law enforcement under the Detroit One program has led to racketeering charges against a member of the Seven Mile Blood street gang, United States Attorney Barbara L. McQuade announced today. Joining McQuade in the announcement were Detroit Mayor Mike Duggan, Detroit Police Chief James Craig and Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division. Charged today was Billy Arnold, 29, of Detroit, an alleged member of the SBM, with 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 felon in possession of a firearm. Two other Detroit men, Steven Arthur, Jr., 26, and Eugene Fisher, 35, were also charged with being felons in possession of a firearm. According to the superseding indictment returned today, the gang operates on the east side of Detroit between Seven and Eight Mile Roads and between Gratiot Avenue and Kelly Road in the 48205 zip code. Seven Mile Blood (“SMB”) members have claimed this area as their territory and refer to it as the “Red Zone” or “4-8-2-0-Die” in some of their rap lyrics. The indictment alleges that SBM engaged in a gang war against 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 rivals posted “hit lists” on social media and violently attacked each other. This shooting war has caused homicide and non-fatal shooting statistics on Detroit’s east side to be considerably higher than the rest of the city. Today’s indictment resulted from the investigation of one of the shooting incidents in the feud between these gangs. “The Detroit One partnership is focusing on violent street gangs, and today's indictment is just the first step in dismantling the group that calls themselves the Seven Mile Bloods and its rivals,” McQuade said. “When we became aware of the retaliation that was occurring between these gangs last year, the Detroit Police and other partners poured resources into stopping the gun violence in this neighborhood. These efforts resulted in a dramatic decrease in homicides and non-fatal shootings in the 9th precinct during in the last several months.” "As the city of Detroit continues its march towards promising downtown and surrounding area re-development, the sense of optimism for the future of Detroit is enhanced with every successful investigation and prosecution of those responsible for the violence that all too often plagues Detroit neighborhoods," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "Today's indictment reinforces the commitment of the FBI, in partnership with the Detroit Police Department and the USAO, to target gang members and others responsible for the violence, particularly gun and drug related violence, that diminishes the quality of life in this community." “The Detroit One partnership’s concerted efforts has once again proved to be effective in ensuring the safety of our citizens and communities” said Chief James Craig. “The ongoing initiative will continue to target, disrupt and dismantle all gangs, as well as other violent offenders that pose a threat to the safety and wellbeing of our City.” Under the Detroit One Initiative, and through the lead efforts of the Detroit Police Department and 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, investigators were able to bring together separate probes into various members of this organization and its activities into one encompassing investigation. Detroit One is a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working together, local, state, and federal law enforcement is striving to maximize its ability to identify and arrest the persons and groups initiating gun 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.Canadian Resident Pleads Guilty to Coercing Minor Girls Using the Internet and Producing Child PornographyRead the Press Release
An Ontario man pleaded guilty today to multiple counts related to the sexual exploitation of two minor girls, including the unlawful coercion and enticement of the two girls, the production of child pornography, and the extortion of the girls using the Internet, 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. Antonio P. Fontana, 58, of Pickering, Ontario, Canada, pleaded guilty before U.S. District Judge David M. Lawson. As part of the plea, Fontana admitted that, in October 2013, he began coercing and enticing a 15-year-old girl (“Victim 1”) into performing various sexual acts for him in front of an Internet webcam. Fontana first began communicating with the victim on the Internet website Omegle.com, where he was posing as a 16-year-old boy. Fontana recorded many, if not all, of the sexual acts that he forced Victim 1 to perform on an almost daily basis. 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, sending sexually explicit images of Victim 1 to Victim 1’s mother, her school and her church, including her friends, peers and church administrators. Fontana also engaged in a similar course of conduct, beginning in November, 2013, with a second minor victim (“Victim 2”), a 14 year-old girl. Both victims were located, at all relevant times, in the Eastern District of Michigan. As part of the plea, Fontana admitted that, in total, he victimized more than five girls. “The phenomenon of ‘sextortion,’ where child predators use the internet to extort children to pose for pictures and engage in sex acts online, is a growing problem,” McQuade said. “Predators entice young people to pose for compromising pictures, and then use shame to silence the victims from seeking help. Parents should warn their children that you never know who is on the other end of an internet conversation, and to never let shame prevent them from seeking help when they are in trouble.” "I am particularly pleased with the swift action from our agents, and from our Canadian law enforcement partners, that brought a quick resolution to this case," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "We were notified on a Friday of the complaint against Mr. Fontana, and by the following Sunday he had been arrested. That speaks to the phenomenal teamwork that exists between the FBI and our partner organizations, even across international borders." Fontana has been detained since his arrest, and arrived in the United States following a lengthy extradition from Canada. According to the plea agreement, Fontana faces a prison sentence of at least fifteen years and up to life in prison. 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.Two Individuals Sentenced for Stealing Personal Information of More Than 1,400 PeopleRead the Press Release
Two individuals were sentenced on aggravated identity theft and related charges, United States Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Jarod J. Koopman, Special Agent in Charge, Internal Revenue Service – Criminal Investigation; Jeffrey Frost, Special Agent in Charge of the U.S. Secret Service, Detroit Field Office; and Chief Michael Patton, West Bloomfield Police Department.
Markitta Washington 29, of Hampton, Georgia, and previously of Farmington Hills, Michigan, and Martez Lear, 29 of Farmington Hills, were sentenced by U.S. District Court Judge Matthew F. Leitman. Washington was ordered to serve 47 months in prison and ordered to pay restitution to the IRS in the amount of $489,883. Lear was order ordered to serve 56 months in prison and ordered to pay restitution to the IRS in the amount of $489,883.
According to court records, Washington, worked for Henry Ford West Bloomfield Hospital and DMC Harper Hospital, removed patient records that included Personal Identifying Information (PII); such as names, dates of birth and social security numbers and used the PII to file fraudulent tax returns in other’s names. A search warrant was executed at the shared residence of Washington and Lear located in Farmington Hills. The information recovered at the residence included patient identification documents and handwritten notes that included PII for approximately 1,400 individuals. The tax refunds were directed to accounts under the control of Washington and Lear.
“Identity theft is a contemptible modern-day menace,” said Jarod Koopman, Special Agent in Charge of IRS-Criminal Investigation. “Law enforcement officers respond to it with every legal resource available. These sentences will serve as a stern warning to those who are considering similar conduct.”
This case was investigated by the Southeast Michigan Financial and Cyber Crimes Task Force, which is based at the Novi Police Department and includes U.S. Secret Service, Homeland Security Investigations, the U.S. Postal Inspection Service and IRS – Criminal Investigation agents, as well as state and local law enforcement officers from the West Bloomfield, Novi, Royal Oak, Southfield, and Troy Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Abed Hammoud with the United States Attorney’s Office for the Eastern District of Michigan in Detroit.
Hospitals have notified individual victims whose personal identifying information was compromised. Patients of the Henry Ford West Bloomfield Hospital may call (313) 874-9561 with any questions. Patients of DMC Harper Hospital may call (313) 966-8818.
Detroit Resident Indicted for Planting Manufactured Explosive Devices in Yard to Protect Marijuana Grow OperationRead the Press Release
UPDATED: On March 3, 2021 the government moved, and the court ordered, that the indictment against Joshua Ragland be dismissed as a result of Mr. Ragland entering into the pre-trial diversion program.
A Detroit man was indicted on December 15, 2015, on charges of manufacturing and possessing destructive devices, which he strategically placed in his yard to protect his marijuana plants, 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. Joshua Ragland, 25, was indicted following a search that was conducted at his home in southwest Detroit. In September, law enforcement was called to investigate an explosion with injuries at the premises. The victim, a 29-year-old male, was walking across a vacant lot next to Ragland’s residence when he heard several explosions and felt pain in his foot. The victim was hospitalized, and released following treatment for his injuries. Upon searching the location, officers recovered five manufactured destructive devices, marijuana and marijuana plants and other materials, including a black gun powder substitute, which were used in the manufacture of the explosive bombs. Several firearms and ammunition were also recovered from the premises. The four-count indictment charges Ragland with Manufacture of Destructive Devices, Possession of Destructive Devices; Possession of Destructive Devices by Prohibited Person and Possession of Explosive Materials by Prohibited Person. An indictment is only a charge, and a defendant is presumed not guilty unless he is convicted at trial by a jury. If convicted on the charges in the indictment, Ragland faces penalties of up to 10 years’ imprisonment, a $250,000 fine, or both, as well as a 7-40 year term of imprisonment for manufacturing destructive devices causing physical injury to another. The case is being prosecuted by Assistant United States Attorney Susan Gillooly with the assistance of ATF, Detroit Field Division, the Detroit Police Department and Detroit Police Bomb Squad, the Michigan State Police Bomb Squad and the Dearborn Police Bomb Squad.
Three Members of the Devils Diciples Motorcycle Gang Convicted of Racketeering, Drug-Trafficking, and Charges Related to Suborning Perjury and Obstruction of JusticeRead the Press Release
After a three-month trial, a federal jury in the Eastern District of Michigan convicted three members of the Devils Diciples Motorcycle Gang today for their participation in various criminal acts, including Racketeering Conspiracy, methamphetamine production and trafficking, marijuana trafficking, subornation of perjury and obstruction of justice, and other federal offenses. 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 and Special Agent in Charge David P. Gelios of the FBI’s Detroit Division made the announcement. "These defendants were responsible for violence and trafficking in methamphetamine in Macomb County and across the country,” said U.S. Attorney McQuade. “We are grateful for the work of the investigating agencies and the jury to bring them to justice." "The defendants in this case ran an illegal enterprise spanning multiple states, and specialized in violent and criminal activity," said Special Agent in Charge Gelios. "Today's convictions, coupled with prior judicial outcomes, have dramatically impacted the ability of this criminal organization to operate, and are the result of a strong partnership of our federal, state, and local law enforcement agencies and the U.S. Attorney's Office for the Eastern District of Michigan." Devils Diciples members Victor Carlos Castano, a/k/a “Vic,” of Warren, Michigan, Michael Kenneth Rich, a/k/a “Tatu,” of Anniston, Alabama and David Randy Drozdowski, aka “D,” 39 of Fair Haven, Michigan, were all found guilty by a jury of engaging in a RICO conspiracy. Both Castano and Rich were found guilty of suborning perjury, obstruction of justice and conspiracy to obstruct justice as well. Both Castano and Drozdowski were found guilty of engaging in a methamphetamine trafficking conspiracy, with Drozdowski being found guilty of a separate count of manufacturing methamphetamine, and Castano being found guilty of engaging in a marijuana trafficking conspiracy. Castano was found not guilty of possession of meth precursors, and Rich was found not guilty of involvement in the mariuana conspiracy. Sentencing hearings will be scheduled at a later date before U.S. District Judge Robert H. Cleland of the Eastern District of Michigan. According to evidence presented at trial, the Devils Diciples (which the group intentionally misspell) is a motorcycle gang with its national headquarters in Clinton Township, Michigan. The Devils Diciples operated regional chapters in cities throughout Michigan, Alabama, Arizona, California, Illinois, Indiana, Ohio and elsewhere, and engaged in criminal activities for financial gain. Evidence presented at trial demonstrated that membership in the Devils Diciples is based in part on successful completion of a probationary period, followed by formal approval by one or more members or leaders. Members, commonly referred to as “full patched members,” are required to own Harley Davidson motorcycles and are required to follow orders from the gang’s leadership, including orders to assault, threaten and intimidate others, to transport and distribute drugs, to lie to law enforcement and to hide or destroy evidence. Members are also required to follow the Devils Diciples by-laws and attend regular meetings referred to as “church.” According to evidence presented at trial, various leaders were responsible for overall management of the activities of the other Devils Diciples members and chapters, including giving final approval to any activity generally affecting the gang as a whole. With other gang members, the leaders also participated directly in criminal activities both for financial gain on behalf of the Devils Diciples, and to protect the gang and its members. Additionally, the evidence showed that members of the gang possessed state and federal law enforcement manuals regarding outlaw motorcycle gangs marked “For Official Use Only” and “Law Enforcement Sensitive,” and numerous documents related to criminal matters involving members of the Devils Diciples, including police reports, search warrants, affidavits, indictments and witness interview transcripts. The evidence showed that the documents were used for the purposes of counter-surveillance and to identify suspected informants. For example, in August 2003, other gang members robbed, kidnapped and attempted to murder members of the gang’s Arizona Chapter for violating the gang’s rules. Inside the Arizona clubhouse, the victims were bound with duct tape and zip ties, and severely beaten with firearms, tasers, knives, and other weapons. The victims were then loaded into the bed of a pick-up truck, driven out into the desert, dumped into ravines, and left to die. The evidence showed that leaders helped to plan the beatings and that later congratulated one of the participants, telling him in a letter that the Devils Diciples were “all proud of you.” In 2006, Castano was charged in federal court in the Eastern District of Michigan with Marijuana trafficking, felon-in-possession of a firearm and possession of a firearm during a drug trafficking offense. The evidence demonstrated that at the February 2006 jury trial, Castano and Rich suborned the perjury of another Devils Diciple (“Gadget”) from Alabama and his girlfriend, by encouraging them to falsely claim that the firearm found in Castano’s possession was Gadget’s girlfriends and that Castano had no knowledge of the firearm. Separately, Rich threatened to get the Devil Diciple’s girlfriend’s 16 year old daughter addicted to drugs and thereafter prostitute her as part of the conspiracy to have the girlfriend testify falsely. Additionally, the evidence demonstrated that in 2012, at a bar in Chesterfield Township, Michigan, Drozdowski and another Devils Diciples member assaulted a perceived rival motorcycle gang member for being present in Devils Diciples territory. The victim was knocked unconscious and suffered multiple fractures to his face and jaw. Drozdowski and the other Devils Diciples member then ripped the leather vest off of the unconscious victim. In addition to the defendants convicted today, over 50 members and associates of the Devil’s Diciples have been convicted at trial or pleaded guilty to various crimes as result of this investigation. The investigation further resulted in the seizure of more than 60 firearms and more than 6,000 rounds of ammunition and the dismantling of eight methamphetamine manufacturing laboratories across the country. The case was investigated by the FBI, the Michigan State Police, the Macomb County Sheriff’s Office and the County of Macomb Enforcement Team (COMET), with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Clair County Sheriff’s Office. The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Eastern District of Michigan.Home Health Care Agency Owner Sentenced to 80 Months for Directing Detroit-Area Medicare Fraud SchemeRead the Press Release
The owner and operator of a Detroit-area home health care agency who directed a $7 million health care fraud scheme was sentenced today to 80 months in prison.
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.
Amer Ehsan, 44, of Canton, Michigan, was sentenced by U.S. District Judge Paul D. Borman of the Eastern District of Michigan, who also ordered Ehsan to pay $4,567,967.12 in restitution.
In connection with his guilty plea, Ehsan admitted that as he owner and operator of Advance Home Health Care Services Inc. (Advance), a home health care agency in the Detroit area, he conspired with physicians, physical therapists and patient recruiters to bill the Medicare program for unnecessary home health care and therapy services and that he paid co-conspirator physicians to refer Medicare beneficiaries to Advance and sign medical documents falsely certifying that they required home health care. Ehsan also admitted that at his direction, Medicare beneficiaries received cash kickbacks in exchange for signing multiple blank physical therapy records.
Additionally, Ehsan admitted that he owned and controlled Michigan Rehab and Management Services LLC, which he used to sell information about Medicare beneficiaries and corresponding fictitious patient files to other Detroit-area home health care agencies. Medicare paid a total of more than $4.5 million as a result of Ehsan’s conduct with these two companies.
Ehsan was part of a wide-ranging scheme that involved 12 defendants, all of whom have pleaded guilty.
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 of the Eastern District of Michigan. Trial Attorney Elizabeth Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Katherine Wagner and Special Trial Attorney Katie R. Fink of the Eastern District of Michigan prosecuted this 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, HHS’ Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is 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.
Former Business Manager of Operating Engineers Local 324 Indicted for Extortion and Embezzlement SchemesRead the Press Release
The former top elected official of the 18,000 member Operating Engineers Local 324, International Union of Operating Engineers, was indicted today by a federal grand jury on charges of extortion, embezzlement, money laundering and conspiracy, United States Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by James Vanderberg, Special Agent in Charge of the Department of Labor, Office of Investigations, Office of Labor Racketeering and Fraud Investigations, Special Agent in Charge David Gelios, Federal Bureau of Investigation, Detroit Division, Ian Burg, District Director of the Department of Labor, Office of Labor Management Standards, Special Agent in Charge Jared Koopman, Internal Revenue Service, Criminal Investigations, and Regional Director Joe Rivers of the Employee Benefits Security Administration.
Indicted was John Hamilton, 61, of Rivera Beach, Florida.
The nine-count Indictment alleges that Hamilton used his position as Business Manager of Local 324 to personally enrich himself through a series of illegal schemes. Local 324 represents heavy equipment and crane operators throughout Michigan, and Hamilton served as the union’s top elected official from 2003 through 2012. Hamilton is charged with extorting business agents and other employees of Local 324 to each pay $5,000 of their salaries per year into what was called the “Team Hamilton Slate Fund.” Ostensibly, the slate fund was to be used for union election campaign expenses. However, Hamilton instead used a significant portion of the money that was extorted from union business agents for his own personal benefit. Hamilton threatened union employees with termination if they complained about the payments to his slate fund. In fact, in 2010, Hamilton fired one business agent who had complained about the payments to Hamilton’s fund. Hamilton used some of the money that he extorted to pay for meals and liquor, as well as $5,000 to his daughter as a wedding present. After losing re-election in an August 2012 membership vote, Hamilton then took for himself $71,000 from the slate fund, as well as distributing more than $35,000 each to Steven Minella and David Hart, two other top Local 324 officials. Hamilton structured and laundered this money by distributing it in a series of seventeen checks with false dates, all for amounts under $10,000. Minella and Hart, the former President and Chief of Staff of the union, respectively, both pleaded guilty earlier this year to felonies for helping to conceal Hamilton’s extortion scheme.
In another scheme, Hamilton is charged with embezzling union funds by giving himself a $97,000 per year raise in October 2009. When a former President of Local 324 raised objections to the $97,000 raise, Hamilton terminated the President. In addition, Hamilton created fraudulent minutes of the union’s Executive Board in an effort to justify the raise.
Hamilton also is charged with embezzling Local 324 funds and Local 324 pension funds by spending more than $50,000 on special rims for his own union-issued Cadillac DTS, as well as expensive meals and liquor at restaurants for little or no union business purpose.
Finally, Hamilton is charged with an honest services fraud conspiracy, in which Hamilton accepted work worth thousands of dollars on his personal residence by a union contractor in exchange for Hamilton’s directing more than $300,000 in Local 324 business to the contractor.
Upon conviction, Hamilton would face a maximum of 20 years in prison and a fine of up to $250,000 on each of the four counts of extortion, conspiracy to commit extortion, money laundering, and conspiracy to commit honest services mail and wire fraud in the Indictment. He also faces a maximum of five years in prison and a $250,000 fine on each of five counts of conspiracy to embezzle union funds, conspiracy to embezzle pension funds, embezzlement of union funds, and attempted structuring of financial transactions.
An indictment is only a charge, and a defendant is presumed not guilty unless he is convicted at trial by a jury.
“Labor unions exist for the benefit of their members, not to line the pockets of the union leaders,” McQuade said. “Hard-working union members deserve honest representation, and leaders who exploit their positions for personal gain will be brought to justice.”
David Gelios, Special Agent in Charge, Federal Bureau of Investigation, Detroit Division said, “The betrayal of the trust of union members and the working public cannot be tolerated at any level. Mr. Hamilton’s embezzlement of union funds was a disservice to the labor union movement and the 18,000 hard-working members of Local 324 of the Operating Engineers Union.”
"Union leaders who misuse their positions to enrich themselves at the detriment of the hard-working men and women for whom they serve will be held accountable for their actions. The fact that Mr. Hamilton concealed his activities and used the very jobs he was elected to protect as leverage to obtain money makes this case even more egregious," stated Jarod Koopman, Special Agent in Charge of the IRS- Criminal Investigation. "IRS- Criminal Investigation will continue to root out individuals who corrupt labor unions by working with its law enforcement partners."
The case was investigated by agents of the Department of Labor, Office of Inspector General Office of Labor Racketeering and Fraud Investigations, the Office of Labor Management Standards, the Employee Benefits Security Administration, the Internal Revenue Service—Criminal Investigations, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys David A. Gardey and Dawn N. Ison.
Former 36th District Court Officer Sentenced to Prison for Theft of FundsRead the Press Release
A 34 year old Detroit man was sentenced yesterday to three years in prison for stealing tens of thousands of dollars in funds that had been collected on civil judgments, announced U.S. Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division.
Marlon Cleveland, a former Court Officer for the 36th District Court in Detroit, Michigan was sentenced by U.S. District Judge Gershwin A. Drain.
Cleveland pleaded guilty in June to theft from a program receiving federal funds and mail fraud. The convictions arose from a pattern of thefts committed by Cleveland in 2013 and 2014. During that time Cleveland victimized more than 30 different individuals and businesses by demanding that they make payments on outstanding court judgments and then keeping those funds for himself.
U.S. Attorney McQuade stated, “Anyone who abuses a position of trust to steal from our courts or to victimize members of the public should expect to face serious penalties under the law.”
Special Agent in Charge Gelios stated, "Mr. Cleveland used his position with the court to defraud both Wayne County, and its residents, all while enriching himself. Individuals who attempt to corrupt a system like this will not be tolerated."
Chief Judge Nancy M. Blount of the 36th District Court stated, “The Court cooperated fully with the investigation and prosecution because this behavior will not be tolerated. We support Judge Drain’s sentence and hope that it will serve as a deterrent to this type of conduct.”
The underlying case was investigated by the Federal Bureau of Investigation in collaboration with the Michigan Attorney General's Public Integrity Unit.
Former EAA Principal and Vendor Indicted on Conspiracy and Bribery ChargesRead the Press Release
An indictment was unsealed today charging a former Educational Achievement Authority (“EAA”) principal and an after-school tutoring vendor with conspiracy and bribery charges, announced United States 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.
The five-count indictment charges that from approximately August 2012 through November 2014, Kenyetta Wilbourn Snapp, the former principal of the EAA’s Denby High School and then Mumford High School, conspired to commit bribery and money laundering. Also charged in the indictment were Glynis Thornton, whose company, Making a Difference Everyday (“M.A.D.E.”), provided after-school tutoring services to Denby and Mumford, and Paulette Horton, who was an independent contractor working for M.A.D.E.
According to the indictment, Snapp selected Thornton’s M.A.D.E. as the after-school tutoring vendor for Denby and Mumford. In exchange, Thornton paid Snapp monetary kickbacks as a reward for Snapp selecting and retaining M.A.D.E. as the after-school tutoring vendor. Thornton disguised payments to Snapp by causing checks to be issued payable to Horton’s company, rather than paying Snapp directly. Horton would then deposit and withdraw the money and give it to Snapp.
Snapp is also charged with tax evasion for failing to report income during taxable year 2012. Horton is also charged with failing to file individual tax returns for year 2011.
“It is incredibly disheartening when school officials and vendors steal money that was intended to educate students, as these charges allege," McQuade said. "We appreciate the full cooperation of the EAA in this matter.”
FBI Special Agent in Charge Gelios stated, "Investigation demonstrated that Ms. Wilbourn-Snapp and her associates took resources allocated to her by the State of Michigan to educate our children and diverted funds for their own personal gain. There can be no tolerance for this abuse of authority. Entrusted by the community to facilitate educational excellence in Detroit’s schools, those indicted betrayed that trust. The FBI, and our partners in this investigation, will always work diligently to bring to justice public officials who selfishly misuse their positions and place their own interests above those they were hired to serve."
IRS-CI Special Agent in Charge Koopman stated, “The IRS enforces the nation’s tax laws, but also takes particular interest in cases involving the payment of kickbacks in exchange for contracts such as the scheme devised by Snapp.”
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.
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.
Priest Sentenced to Prison for Stealing Money from His Former ParishRead the Press Release
Edward Belczak, 70, the former priest of St. Thomas More Church in Troy, was sentenced to 27 months in prison for stealing $572,775 from his parish, 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 and Chief Gary Mayer of the Troy Police Department.
During a hearing today before U.S. District Judge Arthur J. Tarnow, Belczak was sentenced to 27 months in prison and a two year term of supervised release based on his plea of guilty to mail fraud for devising and executing a scheme to steal and divert $572,775.32 from St. Thomas More Church over several years, and then creating yearly false financial reports that were mailed to the Archdiocese of Detroit that concealed his theft and diversion of the money for his own benefit.
At the time of his plea, Belczak admitted that in March 2005, he used $109,570.80 from St. Thomas More’s bank account to pay the down payment on a Wellington, Florida condominium. According to court records, in April and May 2006, Belczak diverted two checks totaling $420,200 payable to St. Thomas More from the estate of a deceased parishioner. In order to conceal his illegal conduct, Belczak opened an unauthorized business bank account in the name of “St. Thomas More c/o Edward Belczak” and deposited both checks into that account. Belczak used most of the money bequeathed to St. Thomas More for his own personal use, benefit and enrichment. From May 2008 through May 2012, a St. Thomas More parishioner donated money each year to the church, totaling $43,000, for the needs of the church. Each year, Belczak deposited the check made payable to St. Thomas More into the business bank account in the name of “St. Thomas More c/o Edward Belczak.”
In addition to the custodial sentence, the funds on deposit in Belczak’s Merrill Lynch and TD Ameritrade accounts and his Florida condominium were forfeited. Belczak also was ordered to pay restitution of $572,775.32 to St. Thomas More.
"Father Belczak's crime was not an isolated incident or a momentary lapse of judgment, but an orchestrated scheme perpetrated over time to defraud the people he claimed to serve. It is a sad day when someone in a position of trust betrays that relationship, but it is important to ensure that no one is above the law,” McQuade said. “This sentence demonstrates that individuals will be held accountable when they steal significant sums of money that are entrusted to them.”
“The actions taken by Mr. Belczak represent a shocking betrayal of the faith and trust the public places in our clergy”, said Special Agent in Charge Gelios. “Secular or otherwise, the FBI is committed to the investigation of anyone who abuses their position for personal gain.”
This case was investigated by special agents of the Federal Bureau of Investigation and the Troy Police Department and prosecuted by Assistant U.S. Attorneys Frances Lee Carlson and Adriana Dydell.
Canadian Citizen Pleads Guilty to Smuggling Turtles from the United StatesRead the Press Release
A Canadian citizen pleaded guilty today 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. Kai Xu, 27, of Windsor, Ontario pleaded guilty today before United States District Judge John Corbett O’Meara in Ann Arbor. At 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. Each count for which Xu pleaded guilty to carries a maximum sentence of ten years in prison and/or a $250,000 fine. A sentencing date has been set for April 12, 2016 at noon in Ann Arbor, Michigan. This case was investigated by special agents of the U.S. Fish and Wildlife Service and Environment Canada.U.S. Attorney's Office Reaches Agreement with Mount Pleasant Public Schools to Provide Appropriate Care for Student with DiabetesRead the Press Release
The U.S. Attorney's Office for the Eastern District of Michigan has reached a settlement with the Mt. Pleasant Public School District to resolve allegations that the district violated the Americans with Disabilities Act (“ADA”) by failing to provide appropriate care for students with diabetes, U.S. Attorney Barbara L. McQuade announced today. The settlement resolves a complaint alleging that the school district did not properly train its staff in providing diabetes care to students, and failed to provide adequate care to a student with diabetes. Title II of the ADA prohibits discrimination on the basis of disability, including diabetes, in public schools. Schools are required to make reasonablemodifications to their policies so that all students, including those with disabilities, have equal access to the school’s programs and activities. Under the terms of the settlement agreement, the school district will create an administrative guideline governing procedures for diabetes care at all schools in the district. The guideline will include a complaint procedure that parents or guardians can follow if they believe their children are not receiving appropriate care. In addition, the district will provide training to its staff on recognizing and responding to diabetes symptoms, and providing care or assisting with self-care for students with diabetes. “All parents, including parents of children with diabetes, should be able to send their children to school in the morning feeling confident that they will receive appropriate care during school hours,” McQuade said. “We commend the Mt. Pleasant Public Schools for working cooperatively to reach this settlement, and for ensuring that all students with diabetes will have an equal opportunity to attend school and participate in school programs and activities.” Those interested in finding out more about this settlement or the obligations of public entities under the ADA may call the U.S. Attorney’s Office Civil Rights Hotline at 313-226-9151, or send an email to [email protected]. Information is also available at the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383(TDD), or at www.ada.gov.Physician Sentenced to 72 Months in Prison for Role in Detroit-Area Medicare Fraud SchemeRead the Press Release
A Detroit-area physician who led and directed a multimillion-dollar Medicare fraud scheme through his medical practice was sentenced today to 72 months in prison.
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 and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) made the announcement.
Dr. Hicham A. Elhorr, 48, of Dearborn, Michigan, was sentenced by U.S. District Judge Nancy G. Edmunds of the Eastern District of Michigan. In addition to imposing the prison term, Judge Edmunds ordered Elhorr to pay $2,073,108.16 in restitution.
According to admissions in his plea agreement, from approximately August 2008 through September 2012, Elhorr and his coconspirators fraudulently billed Medicare $4.2 million for purported in-home physician services. Elhorr admitted that he employed unlicensed individuals through his visiting physician practice, House Calls Physicians PLLC, who held themselves out as licensed physicians and purported to provide physician home visits and other services to Medicare beneficiaries in Michigan. The unlicensed individuals prepared medical documentation that Elhorr and other licensed physicians signed as if they had performed the visits when, in fact, no licensed physicians had treated the beneficiaries.
This case was investigated by the FBI and HHS-OIG and 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. The case was prosecuted by former Assistant Chief Catherine K. Dick and Trial Attorneys Matthew C. Thuesen and F. Turner Buford of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged approximately 2,300 defendants who have collectively billed the Medicare program for more than $7 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.
Justice Department Sues Three Michigan Apartment Complexes for Discriminating Against Families with ChildrenRead the Press Release
The Justice Department today filed a lawsuit against the owners and manager of three Michigan apartment complexes – Parkside East Apartments, in East Lansing, Michigan, Holt Manor Apartments in Holt, Michigan, and Kelly Manor Apartments in Owosso, Michigan – for discriminating against families with children.
The lawsuit, filed in the Eastern District of Michigan in Detroit, alleges that the defendants refused to allow children in Parkside East, which consists of 41 one-bedroom apartments, and also refused to allow children in the one bedroom apartments at Holt Manor and Kelly Manor. At Holt Manor, 23 of the 27 apartments are one-bedroom apartments. At Kelly Manor, 17 of the 25 apartments are one-bedroom apartments. The suit names as defendants the Bloomfield Hills, Michigan-based corporate entities that own the complexes, Parkside East Inc., Holt Manor Inc., and Kelly Manor Inc., as well as Bloomfield Hills resident Sudi Hopper, who serves as the rental agent for the three properties.
The allegations are based on evidence collected by the Fair Housing Center of Southeastern Michigan, based in Ypsilanti, Michigan, which had testers posing as prospective residents contact the defendants’ offices and speak with Hopper about renting a one-bedroom apartment. The testing revealed that Hopper did not allow single parent households with a minor child to live in a one-bedroom apartment, but did allow households with two adults to rent such an apartment.
“Although housing discrimination against families with children has been illegal under the Fair Housing Act for more than 25 years, too many families still face such discrimination when they look for housing,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Justice Department will continue its vigorous enforcement of fair housing laws that protect the rights of these families.”
“The Fair Housing Act gives parents the right to decide what type of apartment is appropriate for their families,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “It is unlawful for landlords to substitute their judgment for that of a parent, and to turn people away from a one-bedroom apartment simply because they have a child. We hope that this complaint sends a message to landlords and renters that we are prepared to defend the rights of all families to fair treatment in housing.”
“The U.S. Department of Justice is committed to protecting the rights of Americans,” said U.S. Attorney Patrick A. Miles Jr. of the Western District of Michigan. “We will continue to fight illegal discrimination and ensure the fair housing rights of families wherever they are challenged.”
The lawsuit seeks a court order prohibiting future discrimination by the defendants, monetary damages for those harmed by the defendant’s actions and a civil penalty.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Individuals who may have information related to this lawsuit should contact the Justice Department toll-free at 1-800-896-7743, mailbox number 93, or e-mail the Justice Department at [email protected].
Fighting illegal housing discrimination is a top priority of the Justice Department. 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.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at www.usdoj.gov/crt/housing or www.hud.gov/fairhousing.
Parkside East Complaint
Warren Doctor Sentenced for Unlawful Oxycodone Prescriptions and Health Care FraudRead the Press Release
A physician who practiced in Warren, Michigan, was sentenced to 84 months in prison today for writing prescriptions for oxycodone and other controlled medications without medical justification, and for health care fraud, announced U.S. Attorney Barbara L. McQuade. McQuade was joined in the announcement by DEA Special Agent in Charge Joseph P. Reagan, Special Agent in Charge Lamont Pugh III of the U.S. Department of HHS Office of Inspector General’s Chicago Regional Office, and Special Agent in Charge David P. Gelios of the FBI’s Detroit Field Office. Hussein Awada, 46, of Royal Oak, Michigan, was sentenced by U.S. District Judge Nancy Edmunds. From 2010 throughearly 212,he conspired with James Lyons, a patient “marketer,” and others, to write prescriptions for 80,000 oxycodoneand Roxicodone, plus other controlled medications, in the names of people who were brought to him by Lyons and other marketers, for no medical purpose. The marketers then bought the pills from the “patients” and re-sold them to street dealers. Awada then used the patient data for the patients brought to him by the marketers to submit bills to Medicare and Blue CrossBlue Shield for services that were either never performed or were medically unjustified.Awada caused these same patiensto receive monthly x-rays, and other invasive tests, which were medically unnecessary buthelped to concealhis fraud.Awada admitted that he defrauded Medicare, Medicaid, and Blue Cross of about $2.3 million. In addition to imprisonment, Awada was ordered to pay restitution to Blue Cross and Medicare in the total amount of $2.3million, and was ordered to forfeit various assets and agree to pay the government $2.3 million. McQuade said, "More people die from overdoses of prescription drugs in America than from overdoses of all other drugs combined. We hope that prosecuting the doctors who are putting these drugs on the streets will deter others from contributing to this epidemic.” DEA Special Agent in Charge Reagan stated, “The DEA has made it a priority to address the dangerous practice of illegally diverting prescription medications. Prescription drugs, such as oxycodone and Roxicodone, are controlled substances for a very good reason. If they are abused, they can lead to addiction, illness, or even death. As a physician, Mr. Awada violated the public trust by illegally diverting prescription drugs on to the streets. This sentence makes it clear that the DEA, and our partners in law enforcement, will continue to utilize our investigative techniques to bring to justice those individuals that are responsible for the illegal distribution of prescription medicines.”Detroit Job Fair Attracts 1,500 Job SeekersRead the Press Release
Nearly 1,500 individuals participated in a reentry job and resource fair at the Northwest Activities Center in Detroit today. The event connected individuals returning from prison with community resources and employment opportunities. The fair was organized by the U.S. Attorney’s Office, Mayor Mike Duggan’s Office, Detroit Employment Solutions, the Michigan Department of Corrections, the U.S. Probation Department, the U.S. Bureau of Prisons and the Cherry Health Community Treatment Center-West Residential Reentry Center. Employers participating at the job and resource fair included manufacturing, construction, recycling, staffing and service companies. The job and resource fair also included representatives from job training programs, community colleges and service providers. 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 leads to recidivism. “Taxpayers pay about $34,000 a year to incarcerate a single prisoner,” stated U.S. Attorney Barbara McQuade. “Rather than watching returning citizens go back to prison through the revolving door, it makes fiscal sense to invest in helping them find jobs. If we want to reduce crime, we need to find jobs for our returning citizens. Otherwise, we will all continue to pay their debt to society.” Lawmakers understand the public safety and fiscal benefits of finding jobs for returning citizens. New federal and state laws encourage employers to hire returning citizens by providing tax incentives for hiring felons and bonding to protect employers from liability. The job and resource fair follows and informational breakfast for employers in May featuring "Orange is the New Black" author Piper Kerman. Organizers asked employers to consider hiring citizens returning from prison. The job and resource fair provided an opportunity to connect employers with returning citizens.Justice Department Files Suit Against Pittsfield Charter Township, Michigan, over Denial of Zoning Approval for Islamic SchoolRead the Press Release
The Justice Department announced today that it has filed a lawsuit against Pittsfield Charter Township, Michigan, alleging that the township violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied zoning approval to allow the Michigan Islamic Academy (MIA) to build a school on a vacant parcel of land located in the township. The case was brought by the department’s Civil Rights Division and the U.S. Attorney’s Office of the Eastern District of Michigan.
The complaint, filed in the U.S. District Court of the Eastern District of Michigan in Detroit, alleges that Pittsfield Charter Township imposed a substantial burden on MIA’s exercise of religion when it refused to grant its request for rezoning to allow MIA to build a new school on a vacant parcel of land in the township. MIA, currently located in Ann Arbor, Michigan, sought to build in Pittsfield Township because it requires additional space for religious and secular educational purposes.
“Religious freedom is a cornerstone of our society, and that freedom includes being able to create the institutions and physical spaces needed for worship, religious education and other aspects of religious exercise,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Justice Department is committed to ensuring that all religious groups enjoy the right to practice their faiths freely, and will continue to challenge local land use decisions that substantially burden religious exercise.”
“The law prohibits the government from imposing land use regulations that substantially burden religious exercise unless there is a compelling government interest and uses the least restrictive means of doing so,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “This complaint alleges that Pittsfield Township denied the Michigan Islamic Academy's request to build a school in violation of that law. We filed this lawsuit to protect the right of all Americans to practice their religion and receive the religious instruction and education of their choice.”
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
RLUIPA, enacted in 2000, contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religious exercise. Persons who believe that they been subjected to religious discrimination in land use or zoning may contact the Civil Rights Division’s Housing and Civil Enforcement Section at (800) 896-7743 or the U.S. Attorney’s Office of the Eastern District of Michigan’s Civil Rights Hotline at (313) 226-9151 or [email protected].
More information about RLUIPA, including a report on the department’s enforcement, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Pittsfield Township Complaint
U.S. Attorney General Honors Detroit Legal Assistant at Awards CeremonyRead the Press Release
A legal assistant at the U.S. Attorney's Office in Detroit was among 279 employees recognized by Attorney General Loretta E. Lynch today for their distinguished public service at the 63nd Annual Attorney General’s Awards Ceremony. Thirty-three other individuals outside of the department were also honored for their work. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice. The department also presented one posthumous award in honor of Deputy U.S. Marshal Josie Wells for his exceptional heroism in the line of duty. Among the employees recognized this year was Beryl A. Robbins, Senior Legal Assistant Coordinator for the U.S. Attorney’s Office of the Eastern District of Michigan. Robbins was presented with the Award for Excellence in Legal Support. Robbins, a 30-year veteran of the Eastern District of Michigan, is responsible for creating, updating and maintaining all forms used by the office in criminal case filings and training all legal assistants about proper case filing practices. She also serves as office liaison to the Clerk of the U.S. District Court. “The individuals being honored today stand out within a department that holds all of its employees and partners to an extremely high standard of excellence,” said Attorney General Lynch. “They have put in long hours, made immense sacrifices and, in some cases, placed themselves in harm’s way. They have taken on issues that once seemed intractable, and made progress on problems that once seemed impossible. And their outstanding work is an inspiration to public servants everywhere.” "Beryl Robbins represents the very best in public service," McQuade said. "She works diligently on behalf of the people of the Eastern District of Michigan, and is constantly striving to find ways to improve the work of our office."U.S. Attorney's Office Obtains Settlement with Fitzgerald Public Schools Requiring Bus Stop AccessibilityRead the Press Release
The U.S. Attorney's Office for the Eastern District of Michigan has reached a settlement with the Fitzgerald Public Schools in Warren, Michigan, to resolve allegations that it denied services to a parent with a mobility disability when it refused to provide a bus stop that she could access, in violation of the Americans with Disabilities Act (ADA), U.S. Attorney Barbara L. McQuade announced today. “This case is a reminder that school districts are required to make reasonable modifications to ensure equal access for everyone,” U.S. Attorney Barbara McQuade said. “Parents have the right to participate in their children’s education, including taking their children to the bus stop. Schools have a responsibility to take reasonable steps to reduce barriers to full participation.” The settlement resolves a complaint that the Fitzgerald Public Schools failed to accommodate a parent with a disability who uses a wheelchair when the school district refused to modify the location of her children’s bus stop so that she could access the area to ensure that her children arrived at the bus stop and boarded safely. The mother initially requested an accessible bus stop in September 2014 when her youngest child started kindergarten, but the district did not modify the bus stop location until March 2015. Under the settlement, the Fitzgerald Public Schools agreed to update its policies and training materials to ensure compliance with the ADA, pay compensatory damages to the complainant and provide an accessible bus stop so long as the complainant has elementary age children who ride the district’s school buses. Those interested in finding out more about this settlements, the obligations of public entities 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. They 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].Seven Men Indicted in Heroin Distribution ConspiracyRead the Press Release
An indictment charging seven Detroit-area men with conspiracy to distribute heroin was unsealed this morning, U.S. Attorney Barbara L. McQuade announced today. Joining McQuade in the announcement was David Gelios, Special Agent in Charge, Federal Bureau of Investigation, Joseph Reagan, Special Agent in Charge, Drug Enforcement Administration, Sheriff Michael Bouchard, Oakland County Sheriff’s Office, Chief Corrigan O’Donahue, Royal Oak Police Department and Chief Timothy Collins, Ferndale Police Department. Albert Street, 34, Floyd Shaw, 20, Chris Coleman, 38, Andre Little, 37, Devon Street, 21, James White, 22, and Carlos Cozart, 24, were charged with conspiracy to distribute and to possess with intent to distribute more than 100 grams of heroin. Cozart is from Hamtramck. The other defendants are from Detroit. In addition, Coleman and Shaw were charged with distribution of heroin resulting in serious bodily injury. The victims involved survived the overdoses because they were revived by paramedics. The law defines serious bodily injury as one that involves a substantial risk of death, and carries a mandatory penalty of 20 years’ imprisonment if convicted. Little was also charged with being a convicted felon in possession of a firearm. Since April, federal, state and local agencies, including the Federal Bureau of Investigation, Drug Enforcement Administration, Immigration and Customs Enforcement-Homeland Security Investigations, Oakland County Gang and Violent Crime Task Force, Oakland County Sheriff’s Office, Royal Oak Police Department, Southfield Police Department, Bloomfield Township Police Department, Troy Police Department, Waterford Police Department, Ferndale Police Department, Detroit Police Department and the Michigan State Police, and several other federal, state and local law enforcement agencies, have conducted a rigorous investigation into this heroin drug trafficking organization that has territories in Detroit expanding from Six Mile Road to Eight Mile Road, including the Woodward Corridor, and beyond. This indictment stems from numerous search warrants that were executed on July 21 in Wayne and Oakland counties, in an effort to combat the heroin epidemic. As a result of those search warrants, law enforcement officers seized a substantial quantity of heroin. The investigation and prosecution in this case are part of Project HOPE (Heroin and Opioid Prevention and Enforcement), the U.S. Attorney’s district-wide initiative to combat the epidemic of heroin use and overdoses. “The heroin epidemic that has resulted in so many overdose deaths in our region calls for us to step up enforcement of heroin distribution to save lives,” McQuade said. “We are tackling this problem from all sides – prevention, treatment and enforcement.” Special Agent in Charge Gelios stated, “The levels of cooperation and teamwork demonstrated in this investigation between the FBI and all the agencies are exceptional. The availability of heroin and other deadly drugs are a threat to our communities. Today’s operations demonstrate the commitment of the United Staets Attorney’s Office and the law enforcement community to respond in a coordinated fashion.” Royal Oak Police Chief O’Donahue stated, “These arrests represent the great teamwork of law enforcement agencies on all levels. Heroin use is on the rise and it is a problem that affects every community. All the officers, agents, and deputies involved in this case are to be commended for their work.” “Oakland County has witnessed heroin-related deaths double in recent years. The effect that this illegal drug has had on our communities and families has been devastating,” said Sheriff Michael J. Bouchard. “The cooperation of both local and federal agencies involved in this operation are to be commended for putting away these dangerous criminals. The Sheriff’s Office is dedicated to continuing to combat drug trafficking in Oakland County and we will be relentless in our pursuit.” Ferndale Police Chief Timothy Collins stated, “Ferndale has experienced a large increase in heroin overdoses over the past year, and it has been impacted by the appearance of Fentenyl. I am grateful for the combined response of the local, state and federal partners who came together to help manage this problem in the metro area.” The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. This investigation was lead by the FBI Oakland County Violent Gang and Violent Crime Task Force in partnership with the Oakland County Narcotics Enforcement Team, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Detroit Police Department, Royal Oak Police Department, Ferndale Police Department, and the FBI Violent Gang Task Force. The case is being prosecuted by Assistant U.S. Attorneys Patrick E. Corbett and Eric Doeh.Plymouth Resident Pleads Guilty to Mail Fraud and Aggravated Identity TheftRead the Press Release
A Plymouth man who impersonated a West Point graduate pleaded guilty today to mail fraud and aggravated identity theft, U.S. Attorney Barbara L. McQuade announced today. McQuade was joined in the announcement by Acting Special Agent in Charge John Shoup, Federal Bureau of Investigation, Detroit Division. William Douglas Street, 64, pleaded guilty before U.S. District Judge Gershwin Drain. Street pleaded guilty to devising and executing a scheme to impersonate a United States Military Academy and Duke University graduate. Street requested transcripts and diplomas in the victim’s name from both institutions using the United States mail. In order to complete these requests, he used identifying information, including the victim’s social security number, date of birth and place of birth. He signed the victim’s name to the request forms. As a result of Street’s actions, the United States Military Academy and Duke University sent the defendant the victim’s transcripts and diplomas. Street created an email account using the victim’s name. He also set up a profile on Career Builder and applied for jobs using a resume he created in the victim’s name. In February 2015, law enforcement officers recovered transcripts, diplomas and various other items in the victim’s name at Street’s residence in Plymouth, Michigan. Street entered into a plea agreement that calls for a sentence of 28-34 months in prison. A sentencing hearing was set for January 28, 2015 at 2:00 pm. This case was investigated by special agents of the Federal Bureau of Investigation and the Plymouth Township Police Department and prosecuted by Assistant U.S. Attorney April Russo.Eight Members of Violent Detroit Street Gang Charged with Rico and Firearms OffensesRead the Press Release
Eight members of Band Crew, a northwest Detroit street gang, were charged in an indictment unsealed today with various offenses based on their roles in gang-related attempted murders, robberies and shootings. The charges are the result of the Detroit One initiative, a collaborative effort between law enforcement and the community to reduce violent crime in Detroit.
The announcement was made by 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 and Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division.
According to the indictment, Band Crew was an association comprised of smaller gangs, including Constantly Making Hundreds (CMH), Young N Crispy (YNC), Pushit (or Pusha) Boy Family (PBF), and Family Over Everything Love is Forever (FOE Life). The indictment alleges that Band Crew operated in northwest Detroit, and that members claimed this area as their territory by “tagging” buildings with gang-related graffiti, including markings such as “#22 BandCrew,” “BAND CREW,” “22 BAND CREW,” “YNCMH” and “PBF.” The indictment fuller alleges that Band Crew members and associates worked to defend their territory, to promote and maintain the status and reputation of the gang, and to engage in or threaten violence in retaliation for perceived wrongs.
The indictment charges eight Band Crew members with a variety of crimes including attempted murders, shootings, assaults, home invasions and robberies. Specifically:
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Corey Deandre Mapp, 22, of Detroit, is charged with RICO conspiracy, use and carry of a firearm during and in relation to a crime of violence and assault with a dangerous weapon in aid of racketeering.
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Alexander Teontae Johnson, 20, of Detroit, is charged with RICO conspiracy.
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Leo James Johnson, 20, of Detroit, is charged with RICO conspiracy, assault with a dangerous weapon in aid of racketeering, use and carry of a firearm during and in relation to a crime of violence and possession of a stolen firearm.
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Joseph Hezekiah Ford, 19, of Detroit, is charged with RICO conspiracy.
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Travontae Javon Joseph, 19, of Detroit, is charged with RICO conspiracy, assault with a dangerous weapon in aid of racketeering, use and carry of a firearm during and in relation to a crime of violence and possession of a stolen firearm.
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Jamell Loval Smith, 19, of Detroit, is charged with RICO conspiracy.
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Mario Perkins, 18, of Detroit, is charged with RICO conspiracy, use and carry of a firearm during and in relation to a crime of violence and conspiracy to assault with a dangerous weapon in aid of racketeering.
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Akeem Arteaze Walker, 19, of Detroit, is charged with RICO conspiracy, use and carry of a firearm during and in relation to a crime of violence and assault with a dangerous weapon in aid of racketeering.
All of the defendants are in custody.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
This case is being investigated by the ATF’s CVRP Task Force (Comprehensive Violence Reduction Partnership), which consists of representatives of the ATF, Detroit Police Department, Michigan State Police and Michigan Department of Corrections. The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Eastern District of Michigan.
Band Crew Indictment
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Former Detroit City Treasurer Sentenced to Eleven Years in Prison for Taking Bribes in Exchange for Tens of Millions in Detroit Pension InvestmentsRead the Press Release
Former Detroit City Treasurer Jeffrey Beasley was sentenced to eleven years in prison today for taking bribes and kickbacks from businessmen who sought and received hundreds of millions of dollars from Detroit’s two pension systems, U.S. Attorney Barbara L. McQuade announced today. McQuade was joined in the announcement by FBI Acting Special Agent in Charge John Shoup, IRS Special Agent in Charge Jarod J. Koopman, and James Vanderberg, Special Agent in Charge for the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations in Chicago. During a hearing today before U.S. District Judge Nancy G. Edmunds, Beasley, 46, of Chicago, was sentenced to eleven years in prison and a term of supervised release based on his four convictions by a jury for honest services fraud conspiracy, extortion and bribery. Beasley, who was appointed by former Mayor Kwame Kilpatrick, served as Treasurer of Detroit from 2006 through September 2008. As Treasurer, Beasley oversaw Detroit’s two pension systems and served as a Trustee for both Detroit’s General Retirement System and the Police and Fire Retirement System. Detroit’s two pension systems service more than 30,000 pensioners, beneficiaries, and city employees. While city Treasurer, Beasley demanded and accepted bribes of more than $250,000 in cash, all-expense paid trips to Miami Beach, Las Vegas and the Turks and Caicos Islands, an $800 set of golf clubs, massages, limousine rides, free liquor, meals and entertainment, among other things of value. Beasley accepted these bribes and kickbacks from men seeking investment money from the two Detroit pension systems, including investment sponsors, third party marketers and the former General Counsel of the pension systems, Ronald Zajac. In addition, Beasley pressured businessmen appearing before the pensions systems to contribute more than $400,000 to the Kilpatrick Civic Fund in exchange for pension system investment money. The former Mayor then used the civic fund money as a slush fund for personal and political expenses. The investigation of corruption in the pension systems of Detroit resulted in a number of convictions. Four other men convicted for their involvement in paying and accepting bribes in connection with the Detroit pension system will be sentenced over the next two weeks. They are: Paul Stewart, a former police officer, pension trustee, and Vice President of the Detroit Police Officer’s Association; Chauncey Mayfield, the former CEO of Mayfield Gentry Realty Advisors; Roy Dixon, the former CEO of Onyx Capital Advisors; and George Stanton, the former Chief of Staff of a Detroit city councilwoman and pension trustee. In addition, a number of other defendants were convicted in relation to the pension fund investigation, including (1) Monica Conyers, a former Trustee of the General Retirement System and former member of the Detroit city council, for conspiracy to take bribes, including bribes relating to a proposed multi-million dollar pension fund investment in Wireless Resources and a $10,000 extortion payment relating to the Police and Fire Retirement System’s investment in the Romulus Deep Injection Waste Well; (2) Samuel L. Riddle, Conyers’ Chief of Staff, for conspiracy to commit bribery and extortion relating to the Wireless Resources and Romulus Deep Injection Well investments; (3) DeDan Milton, a former Trustee of Detroit’s two pension funds; (4) Andrew Park, an owner of Asian Village, who paid a bribe to obtain a $2.75 million loan from Detroit’s General Retirement System; (5) Derrick Miller, former Chief Information Officer of Detroit, who accepted the bribe from Park and who took a kickback of more than $500,000 on a $44 million investment by Detroit’s two pension funds; and (6) the late Ronald Zajac, former General Counsel of Detroit’s two pension systems for over 30 years, who was convicted prior to his death of collecting and delivering almost $20,000 in cash bribes to trustees in order to secure a huge raise in salary for himself. United States Attorney McQuade said, “Beasley robbed city employees and retirees of pension benefits they had earned through their hard work and dedication to public service. The court’s sentence today sends a strong message that public officials will be punished when they abuse their positions of trust to personally profit at the expense of pensioners.” “With this sentencing, we move closer to closing an ugly chapter of corruption in Detroit”, said John R. Shoup, Acting Special Agent in Charge of the FBI Detroit Division. “We are committed to protecting our citizens from officials who abuse their positions of trust, and steal from the hard-working people of this city.” "IRS Criminal Investigation is committed to working with the US Attorney's Office and its law enforcement partners to detect and investigate public officials that choose to abuse their position for their own personal enrichment", said Special Agent in Charge Jarod J. Koopman. “Public officials who betray their trust by extorting financial vendors undermine the viability of pension plans like the City of Detroit Retirement System. Corrupt actions have cheated hard working City of Detroit employees out of what they rightfully earned. Our office will continue to work with the United States Attorney’s Office and our law enforcement partners to detect and deter crimes against American workers and their benefits,” stated James Vanderberg, Special Agent in Charge for the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations in Chicago. The case was investigated by agents of the FBI, the Internal Revenue Service, and the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. It is being prosecuted by Assistant United States Attorneys David A. Gardey, Stephanie Dawkins Davis, and Julie Beck.U.S. Attorney's Office Reaches Agreement with Detroit Public Schools to Ensure Effective Communication for Parents Who Are Deaf and Hard of HearingRead the Press Release
The U.S. Attorney's Office for the Eastern District of Michigan has reached an agreement with the Detroit Public School District under the Americans with Disabilities Act (“ADA”), requiring the district to provide sign language interpreters and other aids and services to parents and guardians who are deaf or hard of hearing, U.S. Attorney Barbara L. McQuade announced today.
The settlement resolves a complaint that the school district failed to provide a sign language interpreter to the deaf parent of a student enrolled in the district’s family- centered Early Childhood Intervention program. The complainant alleged that the district denied her effective communication by refusing to provide her with a sign language interpreter at the program’s home and center-based teaching sessions so that she could actively participate in the education of her child.
The ADA requires that public entities, such as public schools, provide effective communication to all individuals with disabilities who seek to participate in or benefit from a school district’s services, programs or activities—not just students. This can include parent participation in parent-teacher conferences, student registration, meetings, ceremonies, open houses, and field trips.
Under the settlement, the Detroit Public School District agreed to modify its policies and train its staff to ensure that parents and guardians who are deaf are able to effectively communicate with school personnel, provide appropriate auxiliary aids and services at no cost, and designate an ADA coordinator for the district. The district also agreed to pay compensatory damages to the complainant.
“All parents want to make sure that their children are getting the best education possible, and parents with disabilities are no different,” McQuade said. “Effective communication between parents and schools is critical to a student’s success, and the law provides parents with disabilities the opportunity to fully participate in their children’s education at our public schools.” McQuade said. “We hope that this case will improve awareness of the responsibility all school districts have to effectively communicate with parents with disabilities.”
Those interested in finding out more about this settlement or the obligations of public entities under the ADA may call the U.S. Attorney’s Office Civil Rights Hotline at 313-226-9151, or send an email to [email protected].
Information is also available at the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or at www.ada.gov.
New Jersey Resident Sentenced to 35 Years in Federal PrisonRead the Press Release
A New Jersey resident was sentenced to 35 years in federal prison yesterday following his guilty plea to two counts of sexual exploitation of children, announced United States Attorney Barbara L. McQuade. Joining in the announcement was Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division. Receiving the sentence was Christopher DeKruif, 28. The sentencing took place before United States District Judge Laurie Michelson in Flint, Michigan. "It is important that victims report to police when they are extorted by online predators," McQuade said. "Parents should tell their children they should never be too ashamed to tell them when they are in trouble and need help.” At the time of his plea, DeKruif admitted that he began an online relationship with the victim, a minor female, in 2012. After obtaining nude pictures of the minor, DeKruif coerced her into photographing explicit sexual acts. DeKruif threatened to disseminate explicit photographs of the victim and to have her and her cousin raped if the victim did not comply. In response to these threats, the victim provided to DeKruif visual depictions of the sexual acts he demanded. After an extensive multi-jurisdictional FBI investigation, which began in Flint, Michigan, DeKruif was identified and arrested in New Jersey. He was then transferred back to Michigan where he had been charged by the United States Attorney's Office. Following DeKruif’s arrest by the FBI in New Jersey, additional evidence was obtained from his computer and social networking which revealed that DeKruif victimized at least eight other girls throughout the United States. That conduct is also incorporated into the plea agreement. The 35-year sentence saves at least nine victims from having to appear and testify in DeKruif’s presenceUnited States Department of Justice Announces Grants for the Eastern District of Michgian to Address Backlog of Untested Sexual Assault KitsRead the Press Release
Michigan agencies will receive more than $5 million in federal grants to address the backlog of untested sexual assault kits and related issues, U.S. Attorney Barbara L. McQuade announced today. The Michigan grants were part of a $41 million grant package awarded by the U.S. Department of Justice that was announced by Vice President Biden and Attorney General Loretta Lynch today. The Michigan agencies receiving grants are the Wayne County Prosecutor’s Office ($1,999,109), Michigan State Police ($2,000,000), the Flint Police Department ($1,313,409) and the Michigan Department of Health and Human Services ($419,000). "Today's grants from the U.S. Department of Justice are a direct result of the hard work of Kym Worthy and others to refuse to accept that sexual assault victims would be forgotten while evidence sat on a shelf collecting dust," U.S. Attorney McQuade said. "These grants will help achieve justice and healing for countless victims of sexual assault in Michigan, and will help identify perpetrators before they can harm more victims." Wayne County Prosecutor Kym Worthy stated, "We are beyond excited that we received this grant today. We have been working so hard on this issue for years and these funds will allow us to more swiftly deal with our almost 2500 CODIS hits and 487 identified serial rapists. We will immediately step up our investigative and prosecutorial efforts. This is a great day for sexual assault victims in Detroit and Wayne County." “The Michigan State Police applied for this grant on behalf of a team that includes the MSP, Michigan Domestic and Sexual Violence Prevention and Treatment Board and Prosecuting Attorney’s Association of Michigan. These funds will allow the team to conduct a statewide inventory of unsubmitted sexual assault evidence kits in law enforcement custody, provide training to law enforcement and prosecutors, and assist with victim services in jurisdictions with a high volume of unsubmitted sexual assault evidence kits. These monies will also be used to fund the enhancement of a sexual assault evidence kit tracking system for victims and the outsourcing of DNA analysis of unsubmitted sexual assault evidence kits found during the inventory process,” stated Col. Kriste Kibbey Etue, director of the Michigan State Police. “Receiving this grant award is further proof and recognition of several years of hard work by a collaborative team here in Michigan to give a voice to survivors of sexual assault.” “The award of this grant is terrific news for the City of Flint and will be a tremendous benefit to the victims in our community,” said Flint Police Chief James W. Tolbert. “The processing of backlogged sexual assault kits has been a top priority for the FPD since my time with the department began almost two years ago. We are extremely thankful of the U.S. Department of Justice for this assistance and look forward to working with our partners in the Michigan State Police, the Genesee County Prosecutor’s Office and our victim advocacy groups as we work to improve the service received by Flint’s victims of sexual assault.” The National Sexual Assault Kit Initiative, a competitive grant program administered by the Justice Department’s Bureau of Justice Assistance (BJA), supports the comprehensive reform of jurisdictions’ approaches to evidence found in sexual assault kits that have never been submitted to a crime laboratory for testing. BJA created the initiative in consultation with the National Institute of Justice (NIJ), Office for Victims of Crime, (OVC), and Office on Violence Against Women (OVW). The goals of the initiative are to create a coordinated community response that ensures just resolution to these cases whenever possible through a victim-centered approach, as well as to build jurisdictions’ capacity to prevent conditions that lead to high numbers of untested kits. The initiative is part of the Justice Department’s larger ongoing effort to comprehensively address the problem of sexual assault and to support victims. For example, NIJ maintains a webpage on Sexual Assault Investigations, Sexual Assault Kits: Using Science to Find Solutions, which provides information ranging from improving forensic sexual assault examinations to research findings on untested evidence in sexual assault cases. OVC provides a Sexual Assault Response Team Toolkit, which has over 1.4 million views to date and includes a checklist of recommendations for victim-centered policies and practices in developing a sexual assault response. OVW updated the National Protocol for Sexual Assault Medical Forensic Examinations and released a companion document on Recommendations for Administrators of Prisons, Jails, and Community Confinement Facilities for Adapting the U.S. Department of Justice's National Protocol for Sexual Assault Medical Forensic Examinations, Adults/Adolescents. A complete listing of today’s federal award recipients can be found at www.bja.gov/SAKIDetroit Gang Leader Sentenced to 35 Years for Violent Racketeering-Related CrimesRead the Press Release
The National President of the Phantom Outlaw Motorcycle Club and “Three-Star General” of the Vice Lords street gang in Michigan was sentenced today to serve 35 years in prison for violent racketeering-related crimes. To date, 12 other defendants have been convicted of federal offenses related to their roles in this violent conspiracy.
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) and Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Division made the announcement.
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 the FBI, law enforcement authorities linked various acts of violence in Detroit to the Phantom Outlaw Motorcycle Club and the Vice Lords street gang, and identified the leaders and key members of these gangs, who now have been held accountable.
Antonio Johnson, aka Mister Tony, MT or Big Bro, 39, of Detroit, was convicted on March 16, 2015, after a multi-week trial, of engaging in a racketeering conspiracy, conspiracy to commit murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, conspiracy to assault with a dangerous weapon in aid of racketeering, use and carry of a firearm during and in relation to a crime of violence, and being a felon in possession of firearms. U.S. District Judge Paul D. Borman of the Eastern District of Michigan presided over the trial and imposed today’s sentence.
“Through his leadership positions in two gangs, Johnson spread violence in Detroit and beyond,” said Assistant Attorney General Caldwell. “Here, through the Detroit One initiative, the collective efforts of federal agents, state and local police, and private citizens helped thwart a mass murder plot and ensure the convictions and lengthy prison sentences of Johnson and his fellow gang members. This case is emblematic of law and order at its best: a true partnership between law enforcement authorities and the community they serve.”
“Gang wars fuel violence in our community, and the resulting drive-by shootings create unacceptable risk to innocent lives,” said U.S. Attorney McQuade. “The Detroit One partners are systematically dismantling violent street and motorcycle gangs that are destroying the peace in our neighborhoods.”
“This significant sentence is the result of our on-going state and federal effort to combat gun violence in our communities,” said Special Agent in Charge Shoemaker. “This investigation and resulting convictions is proof again that the Detroit One initiative and the CVRP are making a significant difference in our communities, there is a lot of work to do, but ATF is committed in the fight against violent crime.”
At trial, evidence showed that the Phantom Outlaw Motorcycle Club, which is headquartered in northwest Detroit, and its members were involved in a range of criminal activity including conspiracy to commit murder, shootings, robbery, extortion and the possession and sale of stolen vehicles and motorcycles. The evidence also demonstrated that the leadership of the Phantoms was heavily involved in the Vice Lords, a well-known street gang originating from Chicago, and that Johnson was both the National President of the Phantoms and a leader of the Vice Lords in Michigan. The evidence showed that Johnson used the Vice Lords to assist the Phantoms in various criminal endeavors, including to search for and violently attack rivals of the Phantoms.
Specifically, according to the evidence presented at trial, on Sept. 8 2013, Johnson ordered numerous Phantoms to forcibly steal the “rags,” or motorcycle vests, of members of the rival Satan Sidekick Motorcycle Club. The evidence showed that, during Phantoms’ attempt to do so, a Satan Sidekick member was shot in the face and a Phantom member was stabbed.
According to the evidence presented at trial, a few weeks later, Johnson and his fellow Phantoms plotted the murder of three members of the rival Hell Lovers Motorcycle Club whom the Phantoms believed were responsible for a shooting death of a member of their club. According to the evidence presented at trial, the plot involved killing the three men and then, during the anticipated subsequent wake at the Hell Lovers’ clubhouse, shooting all Hell Lovers in attendance. ATF and FBI agents intervened before the Phantoms carried out the plot.
In addition to Johnson, the following defendants have been convicted and sentenced:
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Marvin Nicholson, 46, of Detroit, was convicted of RICO conspiracy, conspiracy to commit murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, conspiracy to assault with a dangerous weapon in aid of racketeering, use and carry of firearms during and in relation to a crime of violence, assault of federal officers and felon in possession of firearms.He was sentenced to serve 40 years in prison.
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Brian Sorrell, 28, of Detroit, was convicted of RICO conspiracy, conspiracy to commit murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, conspiracy to assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence.He was sentenced to serve 21 years in prison.
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Matthew Schamante, 33, of Waterford, was convicted of RICO conspiracy, and was sentenced to serve 102 months in prison.
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Brian Jackson, 48, of Detroit, was convicted of conspiracy to commit murder in aid of racketeering, and was sentenced to serve 96 months in prison.
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Sherman Brown, 44, of Detroit, was convicted of conspiracy to commit murder in aid of racketeering, and was sentenced to serve 100 months in prison.
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Brandon Paige, 21, of Detroit, was convicted of conspiracy to commit murder in aid of racketeering, and was sentenced to serve 90 months in prison.
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Roger Valdes, 30, of Pontiac, Michigan, was convicted of assault with a dangerous weapon in aid of racketeering and use and carry of firearms during and in relation to a crime of violence, and was sentenced to serve 49 months in prison.
The following defendants also have been convicted, but have not yet been sentenced:
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Raynard Brown, 39, of Detroit, was convicted of RICO conspiracy.
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Vicente Phillips, 51, of Pontiac, was convicted of RICO conspiracy.
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Maurice Williams, 34, of Detroit, was convicted of RICO conspiracy.
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Christopher Odum, 30, of Detroit, was convicted of conspiracy to commit murder in aid of racketeering.
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William Frazier, 37, of Auburn Hills, Michigan, was convicted of assault with a dangerous weapon in aid of racketeering and use and carry of firearms during and in relation to a crime of violence.
The case was investigated by the ATF and the FBI. The case was prosecuted by Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Louis Gabel of the Eastern District of Michigan.
Through the Detroit One initiative, local, state, and federal law enforcement authorities are maximizing their abilities to identify and arrest those responsible for violence in Detroit. Since 2013, this collective effort has had led to significant indictments, convictions, and sentences against a number of street gang members responsible for much of the violent crime in Detroit. These collaboration also has contributed to a decrease in the homicide rate from 386 in 2012 to 300 in 2014, and in the overall violent crime rate.
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Priest Pleads Guilty to Stealing Money from His Former ParishRead the Press Release
Edward Belczak, 70, the former priest of St. Thomas More Church in Troy, Michigan, pleaded guilty today to mail fraud, U.S. Attorney Barbara L. McQuade announced. McQuade was joined in the announcement by Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Detroit Division. Belczak pleaded guilty to devising and executing a scheme to steal $572,775.82 from St. Thomas More Church over several years, and then creating yearly false financial reports that were mailed to the Archdiocese of Detroit that concealed his theft of the money for his own benefit. Belczak admitted that in March 2005, he used $109,570.80 from St. Thomas More’s bank account to pay the down payment on a Florida condominium. According to court records, in April and May 2006, Belczak diverted two checks totaling $420,200 payable to St. Thomas More from the estate of a deceased parishioner. To conceal his illegal conduct, Belczak opened a business bank account in the name of “St. Thomas More c/o Edward Belczak” and deposited both checks into that account. From May 2008 through May 2012, a St. Thomas More parishioner donated money each year to the church, totaling $43,000, for the needs of the church. Each year, Belczak deposited the check made payable to St. Thomas More into the business bank account in the name of “St. Thomas More c/o Edward Belczak.” Belczak entered into a plea agreement that calls for a sentence of between 33 and 41 months in custody. Belczak has agreed to pay restitution to St. Thomas More Church in the amount of $572,775.82. A sentencing hearing was set for December 1, 2015. “Fraud cases typically involve people using lies to steal money, but in a case involving a member of the clergy, the fraud also includes a serious betrayal of trust,” McQuade said. “In this case, Father Belczak abused the sacred trust his parishioners placed in him so that he could enrich himself.” This case was investigated by special agents of the Federal Bureau of Investigation and the Troy Police Department and prosecuted by Assistant U.S. Attorneys Frances Lee Carlson and Adriana Dydell.Detroit-Area Physician Pleads Guilty for Role in $5.7 Million Fraud SchemeRead the Press Release
A Detroit-area medical doctor who prescribed unnecessary controlled substances and billed for unperformed office visits and diagnostic testing pleaded guilty today for his role in a $5.7 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 Paul M. Abbate 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 Regional Office and Special Agent in Charge Jarod J. Koopman of Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Laran Lerner, 59, of Northville, Michigan, pleaded guilty before U.S. District Judge Victoria A. Roberts of the Eastern District of Michigan to one count of health care fraud and one count of structuring cash transactions to avoid bank reporting requirements, as charged in a two-count information filed on Aug. 21, 2015. Sentencing is set for Jan. 24, 2015.
According to admissions made as part of his plea agreement, Lerner lured patients into his clinic with prescriptions for unnecessary controlled substances. Lerner admitted that he billed and caused Medicare to be billed for a variety of unnecessary prescriptions, tests and office visits to make it appear as though he was providing legitimate medical services instead of medically unnecessary controlled substances. According to admissions made as part of his plea agreement, Medicare was billed $5,748,237.31, as a result of Lerner’s unnecessary prescriptions, office visits and diagnostic testing.
As part of the plea agreement, Lerner agreed to permanently surrender his Drug Enforcement Administration controlled substance registration and agreed not to re-apply in the future.
Lerner also pleaded guilty to structuring cash deposits he received as a result of his scheme to avoid triggering the requirement under federal law that domestic banks file a report – called a Currency Transaction Report – with the Secretary of Treasury for all transactions in currency over $10,000. Lerner admitted that he knew about this requirement and caused his cash deposits to be structured in $5,000 increments on consecutive days at various branch locations in the Detroit area to avoid detection. According to court documents, Lerner deposited $70,000 in cash in April 2013 alone by making deposits of $5,000 on fourteen different days.
The case was investigated by the FBI, HHS-OIG and IRS-CI, and 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. The case is being prosecuted by Trial Attorney Elizabeth Young of the Fraud Section.
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.
Lerner Plea Agreement
Union County Man Sentenced to 25 Years in Prison for Producing Child PornographyRead the Press Release
CHARLOTTE, N.C. – A Union County man was sentenced today in U.S. District Court to 25 years in federal prison for producing child pornography, announced Acting U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. Chad Landon Blume, 34, of Waxhaw, N.C., was also ordered to serve a lifetime of supervised release and to register as a sex offender. The sentence was imposed by U.S. District Judge Robert J. Conrad, Jr. of the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Union County Sheriff Eddie Cathey join Acting U.S. Attorney Rose in making today’s announcement.
According both to admissions made in connection with Blume’s guilty plea and to information introduced at sentencing, law enforcement recovered an SD Card that contained visual depictions of a minor engaging in sexually explicit conduct. Court records indicate that law enforcement determined the SD Card came from Blume’s cellular phone, which he had used to produce the child pornography on or about November 2012. During a subsequent search of Blume’s residence, agents seized Blume’s computer and other devices. A forensic analysis of those devices revealed that Blume had produced numerous sexually explicit pictures of a female minor under the age of 10. After Blume’s arrest, a second minor female came forward and disclosed that she had been molested by Blume. Blume pleaded guilty to one count of production of child pornography in December 2013.
Blume has been in federal custody since April 2013. Upon designation of a federal facility, he will be transferred to the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The FBI’s Crimes Against Children Squad investigated the case, assisted by the Union County Sheriff’s Office. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte handled the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorneys and Federal Law Enforcement Leaders Conduct Summit to Target Heroin and Opioid Trafficking and Overdose EpidemicRead the Press Release
United States Attorneys and leaders of federal law enforcement agencies from across six states met in Detroit on August 26, 2015, to share strategies to combat the heroin and prescription pill epidemic across the region. The effort was announced jointly by United States Attorneys Barbara L. McQuade (Eastern District of Michigan), Kerry Harvey (Eastern District of Kentucky), Patrick A. Miles, Jr. (Western District of Michigan), Steven Dettelbach (Northern District of Ohio), Carter Stewart (Southern District of Ohio), John Kuhn, Jr. (Western District of Kentucky), David J. Hickton (Western District of Pennsylvania), William C. Killian (Eastern District of Tennessee), David Rivera (Middle District of Tennessee), Edward L. Stanton (Western District of Tennessee), William Ihlenfeld, II (Northern District of West Virginia), and R. Booth Goodwin, II (Southern District of West Virginia), Directors of High Intensity Drug Trafficking Areas (“HIDTA”) Abraham Azzam (Michigan), Derek Siegle (Ohio) and Frank Rapier (Appalachia), Drug Enforcement Administration (“DEA”) Special Agents in Charge Joseph P. Reagan (Detroit Division), Karl Colder (Washington, D.C., Division), Gary Tuggle (Philadelphia Division) and Daniel Salter (Atlanta Division), Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation (“FBI”), Detroit Field Office, Special Agent in Charge Marlon Miller, Homeland Security Investigations (“HSI”) in Detroit and Special Agent in Charge Howard Marshall, Federal Bureau of Investigation for Kentucky. Hickton co-chairs the national Heroin Task Force. The summit was called in response to the national epidemic of heroin and prescription pill abuse that has hit Michigan, Ohio, Kentucky, Tennessee, Pennsylvania and West Virginia, particularly hard. Heroin overdose deaths in the United States have tripled from 2010 to 2013. Nationally, the number of deaths from all drug overdoses exceeded 43,000 last year, more deaths than from traffic accidents. Heroin use in the United States has doubled from 2007 to 2012. In the Midwest, opioid deaths have increased 62 percent. Just since January 1, more than 60 people have died by overdose of heroin and fentanyl in Wayne and Washtenaw counties alone. The number of heroin overdose deaths in Oakland County doubled from 2013 to 2014. The summit seeks to target this national and regional problem by dismantling drug trafficking organizations that distribute heroin and prescription pills and by increasing prevention and educational efforts. One of the purposes of the summit is to discuss a regional strategic initiative as part of the federal Organized Crime Drug Enforcement Task Force program. Under this initiative, law enforcement and prosecutors across the region will investigate and prosecute the movement of heroin and prescription pills from Michigan and Ohio into Kentucky, Tennessee, West Virginia and western Pennsylvania. This effort includes action by the U.S. Attorneys’ Offices, DEA, FBI, HSI, the Bureau of Alcohol Tobacco, Firearms and Explosives (“ATF”) and the Internal Revenue Service Criminal Investigations (“IRS-CI”). As part of the initiative, the three HIDTA programs in the region (Michigan, Ohio, and Appalachia) will work with their federal, state and local partners to increase enforcement of heroin and pill trafficking and to target drug distribution that results in overdoses and deaths. The initiative also includes a commitment by each United States Attorney to engage in district-wide anti-heroin and prescription pill programs. For example, in the Eastern District of Michigan, United States Attorney Barbara McQuade has enacted Project HOPE (Heroin, Opioid Prevention and Enforcement). Project HOPE includes the targeting of drug traffickers whose distribution results in the death or overdose of the purchasers of the drugs. Project HOPE also dedicates more resources towards prosecuting heroin and pill traffickers generally. The initiative includes educational and outreach efforts to educate the public about the dangers of heroin and prescription pill abuse. United States Attorney McQuade said, “The epidemic of overdose deaths from heroin and prescription pill abuse is startling and needs to be met with an intense response by law enforcement. This summit is intended to strengthen and better coordinate our efforts to disrupt heroin and pill trafficking across the region. We also seek to raise public awareness about addiction, treatment and prevention.” Joseph Reagan, Special Agent in Charge, Drug Enforcement Administration, Detroit Division, which is responsible for Michigan, Ohio, and Kentucky, said, “The DEA welcomes this opportunity to examine best practices with our law enforcement partners and coordinate enforcement efforts. Equally important to DEA is working to increase the level of public awareness regarding the dangers of prescription drug abuse, not the least of which is the very realistic path to heroin use.”Camp Counselor Charged with Production, Possession and Receipt of Child PornographyRead the Press Release
A 21-year-old West Bloomfield man was charged in a criminal complaint with production, possession and receipt of child pornography, United States Attorney Barbara L. McQuade announced today. McQuade was joined in the announcement by Special Agent in Charge Marlon Miller, Immigration and Customs Enforcement, Homeland Security Investigations (HIS) and Police Chief Michael Patton, West Bloomfield Police Department. According to court records, Matthew David Kuppe, a camp counselor at the Jewish Community Center (JCC) day camp, photographed young boys in a locker room setting and posted those photographs on a foreign image sharing website. The photographs depicted the prepubescent boys’ genitalia. Kuppe was arrested on August 12, 2015, and appeared in federal court in Detroit before United States Magistrate Judge R. Steven Whalen on August 13. Kuppe was ordered temporarily detained pending a hearing on August 18, 2015. If convicted of these offenses, Kuppe faces a term of 15-30 years in custody for the production of child pornography charge, up to 20 years in custody for the possession and receipt of child pornography charges. Kuppe was an employee at JCC for the past two summers. McQuade praised the work of the West Bloomfield Police Department and agents of ICE-HSI for their thorough investigation of this case. An information line, e-mail address and website have been established on behalf of the West Bloomfield Police Department, Department of Homeland Security, and the United States Attorney’s Office. Parents and guardians of children who attended the Jewish Community Center (JCC) day camp who would like additional information should send an e-mail to [email protected]. Please include your name and contact information in your request. A response to your inquiry, via telephone call and/or e-mail, will be returned to you as quickly as possible. Further information can be obtained from the web page at www.justice.gov/usao-edmi or the information line at 1-888-702-0553 Assistant United States Attorneys Matt Roth and Sara Woodward are prosecuting this case for the United States.Detroit Man Convicted on Sex Trafficking ChargesRead the Press Release
A Detroit resident was convicted by a federal jury yesterday on charges of sex trafficking three minor victims using force and coercion, announced United States Attorney Barbara L. McQuade. McQuade was joined in the announcement by Special Agent in Charge Paul D. Abbate, Federal Bureau of Investigation. Willie Curry, 36, of Detroit, was convicted following a two-week jury trial before United States District Judge Denise Page Hood. Curry was also convicted of producing child pornography depicting the victims, and illegally possessing a firearm. Evidence presented at the trial established that Curry found his 15- and 16-year-old victims in Mt. Pleasant, Michigan, after they had run away from a residence where they had been placed by a juvenile court. Curry convinced the victims to come to Detroit by promising them new clothes and cellular telephones and offering to take care of them. Once in Detroit, however, Curry used physical violence and threats to control his victims, including beating one victim with a metal broomstick when she disobeyed his rules. He took explicit photographs of the victims, and then used the photographs in advertisements for commercial sex acts with the victims. When one of the victims refused to comply with Curry’s demands to engage in sex acts with strangers for money, he raped her. The next day, the victim climbed out of the bathroom window and fled from the home. She ran to a nearby gas station, where she approached a woman and asked for help. The woman called the girl’s father, who immediately started driving toward them. The woman returned the girl to her father near Lansing, Michigan. The girl was then interviewed by the Michigan State Police, and the information she provided led to the rescue of the other two victims from Curry’s home. “This defendant preyed on young, vulnerable victims, using false promises, threats and violence to compel them to engage in sex acts for his own profit,” McQuade said. “Sex traffickers like this one treat human beings like commodities to be traded for cash.” Sentencing is set for December 9, 2015. Curry faces a sentence of 15 years to life in prison. The case was investigated by the FBI’s Southeastern Michigan Crimes Against Children Task Force (SEMCAC). The Mt. Pleasant Police Department and the Michigan State Police provided crucial assistance in the investigation.
Gang Leader Sentenced to 40 Years in Prison for Violent Racketeering-Related Crimes and Shooting at Federal AgentsRead the Press Release
A leader of the Phantom Outlaw Motorcycle Club, who was also a member of the Vice Lords street gang, was sentenced to 40 years in prison today for violent racketeering-related crimes and shooting at federal agents.
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) and Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Division made the announcement.
Marvin Nicholson, 46, of Detroit, was convicted on March 16, 2015, after a multi-week trial before U.S. District Judge Paul D. Borman of the Eastern District of Michigan, of engaging in a RICO conspiracy, conspiracy to commit murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, conspiracy to assault with a dangerous weapon in aid of racketeering, assault on federal officers, using and carrying firearms during and in relation to a crime of violence and being a felon in possession of firearms.
At trial, the evidence showed that the Phantom Outlaw Motorcycle Club, which is headquartered in northwest Detroit, and its members were involved in a range of criminal activity, including conspiracy to commit murder, shootings, robbery, extortion and the possession and sale of stolen vehicles and motorcycles. The evidence also demonstrated that the leadership of the Phantoms was heavily involved in the Vice Lords street gang, which is a well-known street gang originating in Chicago.
According to the evidence presented at trial, Nicholson was the National Enforcer of the Phantoms and a member of the Vice Lords street gang. Further, the evidence showed that Nicholson played a significant role in planning armed assaults on rivals, imposing discipline on the Phantoms and carrying out the orders of Antonio Johnson, aka Mister Tony, MT and Big Bro, who was the National President of the Phantoms and the “Three-Star General” over the Vice Lords street gang in Michigan. The charges of which Nicholson was convicted primarily stemmed from the Phantoms’ attacks or planned attacks on their rivals and enemies, including a murder plot.
Finally, the trial evidence demonstrated that, on Oct. 4, 2013, while the ATF attempted to execute a search warrant at his residence in Detroit, Nicholson shot at ATF agents as they attempted to enter his residence. A wall prevented the bullets from hitting the agents.
Another 12 defendants have been convicted of a variety of racketeering and weapons offenses in this case. Additional sentencing hearings will be held before U.S. District Judge Paul D. Borman of the Eastern District of Michigan.
These convictions are 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, and 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 the FBI.
This case is being prosecuted by Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Louis Gabel of the Eastern District of Michigan.
Joint Investigation Leads to Large-Scale Narcotics Indictment and Arrests on Detroit's EastsideRead the Press Release
An indictment charging 24 members of a large-scale narcotics organization from the Ravendale neighborhood on Detroit’s east side was unsealed today, United States Attorney Barbara L. McQuade announced. Joining McQuade in the announcement was Special Agent in Charge Paul D. Abbate, Federal Bureau of Investigation. The indictment also charges six of the defendants with participating in an extensive illegal dogfighting ring. The indictment allege that these defendants acquired, bred and trained dogs for dogfights in Detroit. The indictment alleges that the group used 16 different houses, most of them abandoned, in and around the Ravendale neighborhood to distribute heroin, cocaine and crack cocaine during the past last several years. During that period, various law enforcement agencies have seized drugs, firearms and distribution paraphernalia in many of these abandoned houses. Through their joint investigative efforts, federal, state and local law enforcement agencies were able to connect this evidence to the larger distribution ring. Among those charged in the indictment unsealed today are: - Damon Burnett, 36, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances, possession of firearms in furtherance of narcotics trafficking, and possession of a firearm by a felon; - Maurice Littles, 44, of Jackson, charged with conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute cocaine, and conspiracy to sponsor and exhibit an animal fighting venture; - Eric Edmon, 42, of Roseville, charged with conspiracy to possess with intent to distribute controlled substances; - Erik Carter, 39, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; - Derek Carter, 39, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; - Daron Calhoun, 35, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; - Stevie Bridgeman, 36, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; - Clyde Woodson, 47, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; - Pierre Livingston, 43, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances and conspiracy to sponsor and exhibit an animal fighting venture; - Marcus Bradford, 44, of Southfield, charged with conspiracy to possess with intent to distribute controlled substances and conspiracy to sponsor and exhibit an animal fighting venture; - Brian Williams, 35, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances and conspiracy to sponsor and exhibit an animal fighting venture; - Jackie Littles, 53, of Harper Woods, charged with conspiracy to possess with intent to distribute controlled substances; - Michael Anderson, 40, of Romulus, charged with conspiracy to possess with intent to distribute controlled substances; - Kim Robinson, 45, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; - Darren Parchem, 28, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; - Sherita Jones, 35, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances and conspiracy to sponsor and exhibit an animal fighting venture; - Maurice Littles Jr., 24, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances and conspiracy to sponsor and exhibit an animal fighting venture; - Myron Duncan Plunkett, 23, charged with conspiracy to possess with intent to distribute controlled substances; - Ivin Booth, 40, of Pontiac, charged with conspiracy to possess with intent to distribute controlled substances; - Shajuana Barnes, 26, of Roseville, charged with conspiracy to possess with intent to distribute controlled substances; - Latrina Hamilton, 35, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; - Eugene Jackson, 29, of Monroe, charged with conspiracy to possess with intent to distribute controlled substances; - Renee Jackson, 40, of Monroe, charged with conspiracy to possess with intent to distribute controlled substances; and - Edward Wilson, 26, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances. “Large-scale, armed drug trafficking organizations that operate out of homes in residential areas create an unacceptable risk of violence to our neighborhoods,” McQuade said. “Dogfighting not only exposes animals to torture for human amusement, but it also poses a safety hazard for residents living in our community when dogs are trained to attack.” “We are extremely proud of the outstanding work done today by our agents and law enforcement partners, which is the result of long-term efforts to counter violent crime, illegal drugs, and organized criminal activity,” said Paul Abbate, Special Agent in Charge of the Detroit Field Office. "The success and impact of this joint effort is an example of our continued commitment together to ensure public safety and protect the citizens we serve in the city and the metropolitan area." The Federal Bureau of Investigation’s Violent Gang Task Force, consisting of representatives of the Detroit Police Department, Michigan State Police, Michigan Department of Corrections, and Homeland Security Investigations, led the investigation. The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Seven Vice Lords Charged in Gang-Related ShootingRead the Press Release
Seven members of the Vice Lords were charged in an indictment unsealed today with various offenses based on their roles in a gang-related shooting. The charges are the result of the collaborative efforts of law enforcement and the community to reduce homicide and other violent crime under the Detroit One program, which has led to the arrests and convictions of Vice Lords leaders during this past year. The announcement was made by 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, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Division and Chief James Craig of the Detroit Police Department. “The Detroit One partners are working to dismantle street gangs that drive the violence in our neighborhoods,” McQuade said. “This indictment is particularly important because we want to demonstrate support for individuals who attempt to leave gang life.” The seven Vice Lord members charged with crimes stemming from this incident are: • Antonio Clark, aka Cheeto, 25, of Detroit, is charged with attempted murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, use and carry of firearms during and in relation to a crime of violence and being a felon in possession of firearms; • Aramis Wilson, aka Ace, 24, of Detroit, is charged with attempted murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, use and carry of firearms during and in relation to a crime of violence and being a felon in possession of firearms; • Tyrone Price, aka Price, 26, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence; • Jonathan Kinchen, aka Deago, 22, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence; • Kojuan Lee, aka Juan, 19, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence; • Kirshean Nelson, 18, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence; and • Dion Robinson, aka Doggy, 37, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence. Robinson, Clark, Price, Kinchen and Wilson are in custody; arrest warrants have been issued for the other three defendants. According to the indictment, the Vice Lords is a national gang engaged in a variety of crimes, including murder, robbery, narcotics trafficking and witness intimidation. The indictment alleges that the Vice Lords’ leaders are located in both Chicago and Detroit, and that the gang is broken down into various “sets,” “decks,” or “branches,” including the Detroit-based Insane Vice Lords, Imperial Insane Vice Lords, Traveling Vice Lords, Conservative Vice Lords, Mafia Insane Vice Lords and Insane Goon Gang. The indictment further alleges that members who seek to leave or withdraw from the gang oftentimes endure a physical beating, known as a “beat out,” by multiple Vice Lord members, or are targeted for killing, known as a “green light.” According to the indictment, on May 7, 2015, to maintain and improve their positions in the Traveling Vice Lords, the defendants shot four individuals from the same family. The indictment alleges that the shooting was prompted by two of the family members’ attempts to leave the gang. The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty. This case is being investigated by the ATF, FBI and the Detroit Police Department. The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Eastern District of Michigan. # # #
U.S. Attorney's Office Obtains ADA Settlement with Doctor's Office for Denying Treatment to Disabled PatientRead the Press Release
The U.S. Attorney's Office for the Eastern District of Michigan has reached a settlement with a Flint ophthalmology office to resolve allegations that it denied treatment to a patient in violation of the Americans with Disabilities Act (ADA), U.S. Attorney Barbara L. McQuade announced today. The settlement resolves a complaint that Park Eye and Surgi-Center refused to complete an assessment for cataract surgery for a patient because of his disability. The investigation showed that the medical practice did not fully assess the patient because it inaccurately assumed that the patient could not complete the normal battery of tests required for cataract surgery because of his mobility disability. The ADA requires that places of public accommodation, such as medical offices, modify their practices to reasonably accommodate persons with disabilities. The patient later received treatment at another local ophthalmologist practice that made the necessary modifications to fully assess him for cataract surgery. “Health care providers are required to provide patients with disabilities the same medical care that is available to other patients,” McQuade said. “Medical practitioners cannot simply make assumptions about any patients. They must engage in a meaningful consideration of what can reasonably be done to assist them.” Under the settlement, the medical practice agreed to update its policies and training materials to ensure compliance with the ADA and to pay compensatory damages to the Complainant. In addition, the practice must train its staff on the ADA and develop and implement an anti-discrimination policy. The U.S. Attorney’s Office is continuing to investigate complaints involving hospitals and other medical offices related to physical access to medical care for people with mobility disabilities, and effective communication for people who are deaf or have hearing loss as part of the Department of Justice’s Barrier Free Healthcare Initiative, which prioritizes enforcement efforts on this critical area. For more information on the ADA and the DOJ’s Barrier Free Healthcare Initiative, visit http://www.ada.gov/usao-agreements.htm. Those interested in finding out more about these settlements, the obligations of public accommodations 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. They 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].Two Brothers Sentenced on Food Stamp Fraud ChargesRead the Press Release
Two Detroit brothers have been sentenced to federal prison for the roles they played in a fraudulent food stamp scheme, U.S. Attorney Barbara L. McQuade has announced. McQuade was joined in the announcement by Special Agent-in-Charge Anthony V. Mohatt, of the United States Department of Agriculture’s Office of Inspector General. On July 20, 2015 U.S. District Court Judge Robert H. Cleland sentenced Yousef Haddad, age 57, to 42 months in prison, three years of supervised release and ordered him to pay $1,182,705.00 in restitution. Previously, on June 9, 2015 Haddad’s brother, Khalil Haddad, was sentenced by Judge Cleland to 34 months imprisonment, 36 months supervised release, and ordered to pay $978,277.00 in restitution. According to court records, between January of 2008 and September of 2011 Yousef and Khalil Haddad engaged in a scheme of fraudulently obtaining in excess of $1 million from the Supplemental Nutritional Assistance Program, more commonly known as the Food Stamp Program. The scheme involved their convenience store, Dollar City, located on Rosa Parks Blvd. in the City of Detroit. The Haddads would pay cash for food stamps usually at 50 cents to the dollar. They would then obtain 100% reimbursement from the United States Department of Agriculture through its Food and Nutrition Services Agency. Special Agent-in-Charge Mohatt stated: “The Supplemental Nutrition Assistance Program was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of SNAP and other USDA programs will be aggressively pursued by our office. Our joint investigation with the Internal Revenue Service – Criminal Investigations (IRS-CI) and Michigan State Police – Bridge Card Enforcement Team (MSP-BCET) has brought Yousef and Khalil Haddad to justice. The USDA Office of Inspector General will continue to dedicate resources and work with our federal and state law enforcement partners in order to protect the integrity of these programs and to prosecute those who commit fraud.”Novi Man Sentenced to Prison for Food Stamp Fraud, Perjury and Unlawful Possession of FirearmsRead the Press Release
A Novi man was sentenced to 2 1/2 years in prison on July 30, 2015, for defrauding the Supplemental Nutrition Assistance Program of more than $520,000, perjury before an immigration court, and being a felon in possession of firearms and ammunition, United States Attorney Barbara L. McQuade announced today. Chief U.S. District Judge Gerald E. Rosen imposed sentenced on Laith Dallo, 46. According to information provided to the court at the defendant’s guilty plea and sentencing hearings, from June 2008 through May 2011, Dallo owned and operated Tweeny’s Pizza and Party Shop on McNichols Road in Detroit. During that period, the defendant engaged in a form of federal program fraud known as “discounting” by which SNAP benefits issued to legitimate beneficiaries were sold to Tweeny’s at a discount of approximately 50 percent. Thus, the beneficiaries received cash for half of the value of the SNAP benefits, which were intended for use only for the purchase of authorized food items, while 100 percent of the benefits were credited to Tweeny’s account. The defendant also sold unauthorized products, such as cigarettes and liquor, in exchange for SNAP benefits at highly inflated prices. On May 18, 2011, agents of the U.S. Department of Agriculture Office of Inspector General executed a search warrant at Tweeny’s and discovered two loaded pistols, a loaded semi-automatic rifle and high-capacity magazines in the store, as well as ammunition for the pistols and a holster in Dallo’s vehicle. Dallo was not authorized to possess firearms or ammunition due to prior felony convictions. Dallo testified at a 2010 immigration hearing pertaining to his Application for Asylum and for Withholding of Removal, that he was leading a crime-free life, when, in fact, he was in the midst of executing the SNAP fraud scheme against the government. This testimony resulted in Dallo’s perjury conviction. After serving his sentence in this case, Dallo will be turned over to immigration authorities on their detainer for deportation proceedings. In addition to the custodial sentence, was ordered to pay restitution of $520,962.15. This case was investigated by USDA-Office of Inspector General, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Craig A. Weier.Rochester Police Department Reaches Settlement to Ensure Effective Communication for Deaf and Hard of Hearing IndividualsRead the Press Release
The U.S. Attorney's Office for the Eastern District of Michigan has reached an agreement with the Rochester Police Department under the Americans with Disabilities Act (“ADA”), requiring the department to provide sign language interpreters and other aids and services to citizens who are deaf or hard of hearing, U.S. Attorney Barbara L. McQuade announced today. The settlement resolves a complaint alleging that the police department failed to provide an individual in detention with a text or video capable telephone while he was in custody and failed to timely provide him with a sign language interpreter. The ADA requires that public entities, such as police departments, provide sign language interpreters and/or other appropriate auxiliary aids and services to deaf and hard of hearing individuals. Under the settlement, the police department agreed to update its policies and train its staff to ensure that citizens who are deaf are able to effectively communicate with police department personnel in the future. It will also ensure that it has a text or video capable telephone available for detainees who are deaf or hard of hearing. “Police departments need policies and training to ensure that they can communicate with anyone that they encounter, regardless of disability," McQuade said. “We applaud the Rochester Police Department for its willingness to update its policies and train its staff to enable effective communication with individuals who are deaf or hard of hearing. We hope that this case will improve awareness about the responsibility police departments have to ensure effective communication with all individuals." Those interested in finding out more about this settlement or the obligations of public entities under the ADA may call the U.S. Attorney’s Office Civil Rights Hotline at 313-226-9151, or send an email to [email protected]. Information is also available at the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or at www.ada.gov.Law Enforcement Agencies to Hold Houses of Worship Interfaith Security SummitRead the Press Release
Following the tragic shooting at Emanuel A.M.E Church in Charleston, South Carolina, last month, the U.S. Attorney’s Office is hosting a training summit to share best practices for security at houses of worship. The summit will take place on Monday, July 27, 2015, from noon to 4:00 p.m. at the Spencer M. Partrich Auditorium at Wayne State University Law School. “Places of worship often define themselves by being open and welcoming to all people, but we want to make sure that faith communities have the information they need to keep everyone who walks through their doors as safe as possible.” The summit will focus on providing faith-based leaders with information that will help them develop and implement security programs and emergency action plans, deter threats, share information and address risks, such as active shooter situations. Hate crime trends and prosecutions will also be discussed. Speakers include U.S. Attorney Barbara L. McQuade, Al Shenouda, Protective Security Advisor, Department of Homeland Security, FBI Special Agent in Charge Paul Abbate, Dearborn Police Chief Ron Haddad and Commander Todd Bettison, Detroit Police Department. The event is being co-hosted the FBI, the U.S. Department of Homeland Security, the U.S. Department of Justice’s Community Relations Service, the Detroit Police Department, the Wayne State University Police Department and the Anti-Defamation League. Leaders from all faith-based communities are encouraged to attend. For more information and/or to reserve a seat at the summit, please contact Robert Poikey, Law Enforcement Coordinator, U.S. Attorney’s Office at (313) 226-9120 or email at [email protected].Detroit Area Doctor Sentenced to 45 Years in Prison for Providing Medically Unnecessary Chemotherapy to PatientsRead the Press Release
A Detroit area hematologist-oncologist was sentenced today to serve 45 years in prison for his role in a health care fraud scheme that included administering medically unnecessary infusions or injections to 553 individual patients and submitting to Medicare and private insurance companies approximately $34 million in fraudulent claims.
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 Paul M. Abbate 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 Regional Office and Chief Richard Weber of the Internal Revenue Service – Criminal Investigation (IRS-CI) made the announcement.
Farid Fata, M.D., 50, of Oakland Township, Michigan, pleaded guilty in September 2014 to 13 counts of health care fraud, one count of conspiracy to pay or receive kickbacks and two counts of money laundering. U.S. District Judge Paul D. Borman of the Eastern District of Michigan imposed the sentence, and ordered Fata to forfeit $17.6 million.
“Rather than use his medical degree to save lives, Dr. Fata instead destroyed them in pursuit of profit,” said Assistant Attorney General Caldwell. “Time and again, Dr. Fata callously violated his patients' trust as he used false cancer diagnoses and unwarranted and dangerous treatments as tools to steal millions of dollars from Medicare, even stooping to profit from the last days of some patients' lives. While no sentence can restore what was taken from his patients and their families, the sentence imposed ensures that never again will Dr. Fata lay hands on another patient.”
“Health care fraud has been a serious problem in Michigan, but no case has been as egregious as the conduct of Dr. Farid Fata,” said U.S. Attorney McQuade. “Dr. Fata did not care for patients; he exploited them as commodities. He over-treated, under-treated and outright lied to patients about whether they had cancer so that he could maximize his own profits.”
“Fata’s heinous acts did far worse than defraud government health care programs and breach his professional oath,” said Special Agent in Charge Abbate. “Fata caused grievous emotional and physical harm, betraying the trust of hundreds of innocent patients by selfishly placing his personal financial gain over the health and welfare of those who entrusted him with their medical care. The many brave individuals impacted by this defendant’s criminal acts had the strength to come forward, express their experiences of pain and suffering, and collaborate with law enforcement and prosecutors to ensure that Fata’s despicable actions were brought to an end and justice delivered.”
“It is startling and abhorrent when greed is so potent that it drives a medical professional to recklessly abandon the most basic and important principle of his profession, ‘First, Do No Harm,” said Special Agent in Charge Pugh. “Dr. Fata did just that when he falsely diagnosed his patients with cancer and administered toxic chemotherapy with potentially harmful and even deadly side effects. Today’s sentencing is a clear message that, working closely with our law enforcement partners, we will continue to investigate, charge and prosecute medical professionals who jeopardize the health of patients.”
“This is the most egregious case of fraud and deception that I have seen in my career," said Chief Weber. “Dr. Fata not only defrauded the government out of millions of dollars, but he lied to his patients about their health and intentionally put their lives at risk. In fact, because of his lies, some of those patients who he was entrusted to care for likely died as a result of his actions. This defendant greedily cared more about his own financial well-being than the lives of his patients. This disgusting and diabolical scheme has hurt hundreds of patients and their families and stolen from them something that no punishment from the court can do to make them whole.”
As set forth at sentencing, Fata was a licensed medical doctor who owned and operated a cancer treatment clinic, Michigan Hematology Oncology P.C. (MHO), which had locations in Rochester Hills, Michigan; Clarkston, Michigan; Bloomfield Hills, Michigan; Lapeer, Michigan; Sterling Heights, Michigan; Troy, Michigan; and Oak Park, Michigan. He also owned a diagnostic testing facility, United Diagnostics PLLC, located in Rochester Hills, Michigan.
In connection with his guilty plea, Fata admitted to prescribing and administering unnecessary aggressive chemotherapy, cancer treatments, intravenous iron and other infusion therapies to patients in order to increase his billings to Medicare and other insurance companies. Fata then submitted fraudulent claims to Medicare and other insurers for these unnecessary treatments.
Fata also admitted to soliciting kickbacks from Guardian Angel Hospice and Guardian Angel Home Health Care in exchange for his referral of patients to those facilities.
Fata further admitted to using the proceeds of the health care fraud at his medical practice, MHO, to promote the carrying on of additional health care fraud at United Diagnostics, where he administered unnecessary and expensive positron emission tomography (PET) scans for which he billed a private insurer.
This case was investigated by the FBI, HHS-OIG and IRS-CI and 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 Assistant Chief Catherine K. Dick, Deputy Chief Gejaa T. Gobena, and Trial Attorney Matthew C. Thuesen of the Fraud Section, and by Assistant U.S. Attorney Sarah Resnick Cohen, White Collar Crime Unit Chief John K. Neal, and Health Care Fraud Unit Chief Wayne F. Pratt of the U.S. Attorney’s Office 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 Team, go to: www.stopmedicarefraud.gov.
Howell Resident Charged in Federal Child Pornography ProbeRead the Press Release
Dennis Fraser, 44, of Howell, Michigan, was arrested on charges alleging he distributed, possessed and received child pornography, 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.
The affidavit supporting the criminal complaint states that ICE agents executed a search warrant on Fraser’s email account and found images of children engaging in sexually explicit conduct. A forensic search of Fraser’s personal computer revealed 211 images of child pornography and multiple link files with titles consistent with child pornography.
Fraser will appear in federal court today at 1:00 p.m. where it will be determined whether he will be detained or released pending trial. If convicted, Fraser faces not less than 15 years in prison and up to 40 years maximum.
This case is being prosecuted by Mollie O’Rourke and investigated by special agents with U.S Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Sixteen Charged in Detroit Area as Part of Largest National Medicare Fraud Takedown in HistoryRead the Press Release
DETROIT, MI – Attorney General Loretta E. Lynch and Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced today a nationwide sweep led by the Medicare Fraud Strike Force in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount.
“This action represents the largest criminal health care fraud takedown in the history of the Department of Justice, and it adds to an already remarkable record of enforcement,” said Attorney General Lynch. “The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others. They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered. In the days ahead, the Department of Justice will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives. We are prepared – and I am personally determined – to continue working with our federal, state, and local partners to bring about the vital progress that all Americans deserve.”
“Health care fraud has been pervasive throughout metro-Detroit in recent years, at great cost to the American taxpayer. We hope that cases like these will alert doctors, pharmacists and other providers that criminal investigators are now scrutinizing billing records so that we can detect fraud and hold wrongdoers accountable,” said Barbara L. McQuade U.S. Attorney for the Eastern District of Michigan.
“The abuse of our health care system through the submission of fraudulent claims and payment of illegal kickbacks is criminal and negatively impacts each and every law abiding, taxpaying citizen,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Through the collective efforts of the Medicare Fraud Strike Force and law enforcement nationwide, the doctors, physical therapists and other licensed medical professionals charged and arrested in Michigan and around the country have been brought forward to face justice for their egregious criminal practices. The FBI, working in lockstep with its partners, remains committed to rooting out those within the medical profession who violate their patients’ trust, endanger their health, and defraud the health care system.”
“Today’s announcement illustrates that the Medicare Fraud Strike Force remains very active in Eastern Michigan,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Individuals who attack federally funded health care programs should know that the Strike Force will detect and dismantle fraud operations and will ensure that perpetrators of these crimes are held accountable.”
“Health care fraud is all about the money,” said Jarod Koopman, Special Agent in Charge, Internal Revenue Service Criminal Investigation. “Our special agents bring their financial expertise to the table, teaming up with our law enforcement partners in order to help identify, investigate and dismantle these corrupt and costly schemes.”
In the Detroit area, sixteen individuals, including six doctors, a social worker, a pharmacist and two physical therapists were charged with a variety of health care fraud and kickback schemes totaling over $122 million. The schemes involved services that were medically unnecessary or never rendered, including physician visits, hospice care, home health care, and the billing but not dispensing of pharmaceuticals. In addition, law enforcement agents executed search warrants at eight locations and seizure warrants of 24 bank accounts related to the alleged schemes. The Centers for Medicare and Medicaid Services has moved to suspend 14 providers associated with the schemes.
The following charges were filed or unsealed:
United States v. Tahir, et al.
Five individuals, two physicians and three owners of hospice and home health care companies, were charged in an indictment with conspiring to commit health care fraud for their roles in a $58.3 million scheme to defraud Medicare by submitting fraudulent claims for home health care and hospice services that were medically unnecessary or not provided. The owners of the home health care and hospice companies, two of whom are also physical therapists, paid physicians and recruiters kickbacks for referring patients, then billed Medicare for medically unnecessary services, which were often never provided. The companies, located in Livonia, Michigan, are A Plus Hospice and Palliative Care, At Home Hospice, and At Home Network Inc., a home health care agency. The physicians who solicited and received kickbacks also submitted claims to Medicare for medically unnecessary physician services through their companies, Waseem Alam, M.D., P.C., Woodward Urgent Care, and Hatem Ataya, M.D., P.C. Those physicians prescribed beneficiaries medically unnecessary prescriptions, including controlled substances, for which Medicare also paid.
The defendants charged in the indictment are Shahid Tahir, 45, of Bloomfield, Michigan, Waseem Alam, 59, of Troy, Michigan, Hatem Ataya, 47, of Flushing, Michigan, Muhammad Tariq, 60, of West Bloomfield, Manawar Javed, 40, of West Bloomfield, Michigan.
United States v. Goldfein, M.D., et al.
Four individuals, a physician and three owners of home health care companies, were charged in a superseding indictment with conspiracy to commit health care and wire fraud, health care fraud, wire fraud and conspiracy to pay or receive health care kickbacks. The indictment alleges that the fraudulent claims were submitted by physicians who took kickbacks to refer home health care, then billed medically unnecessary services and prescribed unnecessary medications billed to Medicare.
The defendants charged in the indictment are William Binder, M.D., 58, Muhammad Zafar, 43, of Brownstown, Michigan, Tariq Khan, 47, of Woodhaven, Michigan, and Ghulam Shakir, 43.
United States v. Daneshvar, M.D.
Gerald Daneshvar, M.D., 39, of West Bloomfield, Michigan, was charged by indictment with his role in an over $5 million conspiracy to commit health care fraud by referring non-homebound patients for home health care services as well as billing for upcoded physician visits through Lake MI Mobile Doctors, PC (“Mobile Doctors”). The owner of Mobile Doctors and another physician employee were indicted in the Northern District of Illinois in 2013 for their roles in the same scheme.
United States v. Lerner, M.D., et al.
Laran Lerner, M.D., 59, of Northville, Michigan, a physician, and Mohamad Bazzi, 42, of Dearborn, Michigan, a licensed pharmacist and pharmacy owner, were charged by complaint with an over $24 million health care fraud scheme. Dr. Lerner provided medically unnecessary prescriptions for expensive pharmaceuticals for which Bazzi’s pharmacy, Advanced Pharmacy Services (APS) would bill Medicare, but not dispense. In addition, Dr. Lerner billed for unnecessary physician visits and referred beneficiaries for medically unnecessary home health care services through his clinic Greater Detroit Physical Therapy & Rehabilitation, located in Westland, Michigan.
United States v. Qadir, M.D.
Rizwan Qadir, M.D., 52, of Bloomfield Hills, Michigan, a physician, was charged by complaint with conspiracy to commit health care fraud and to pay or received kickbacks in a $19 million Medicare fraud scheme. Qadir paid patient recruiter Johnny Younan to bring him patients, for whom he would bill medically unnecessary tests and visits. Qadir also referred the beneficiaries for medically unnecessary home health care services.
United States v. Younan
Johnny Younan, 52, of Centerline, Michigan, was charged by complaint with conspiracy to pay or receive health care kickbacks to a physician, who would also prescribe Medicare beneficiaries controlled substances as an inducement to provide their Medicare information for billing.
United States v. Celestine Brown
Celestine Brown, 50, of Ypsilanti, Michigan, a licensed social worker, was charged by information with one count of health care fraud and one count of structuring in connection with her role in a $3.8 million scheme to defraud Medicare through the submission of false claims for psychotherapy services that were never rendered. Brown submitted the false claims through her company CBC Services, LLC located in Ypsilanti, Michigan. Brown is also alleged to have then structured cash withdrawals from her bank accounts in amounts of less than $10,000 to avoid reporting requirements.
United States v. Tamara Brown
Tamara Brown, 42, of Southfield, Michigan, was charged by complaint with her part in a $1.3 million kickback conspiracy. The complaint alleges that Brown solicited and received kickbacks from two Detroit area home health care agencies, Cherish Home Health Services, LLC, and Empirical Home Health Care, Inc., in return for providing patient referrals from a physician.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.
Including today’s enforcement actions, nearly 900 individuals have been charged in national takedown operations, which have involved more than $2.5 billion in fraudulent billings. Today’s announcement marks the first time that districts outside of Strike Force locations have participated in a national takedown and accounted for 82 defendants charged in the takedown.
These cases were investigated by the FBI, HHS-OIG and IRS-CI and were 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. These cases are being prosecuted by Trial Attorneys Matthew C. Thuesen, Elizabeth Young, Amy Markopoulos and Drew Bradylyons.
A complaint, indictment or information is merely a charge, and defendants are presumed innocent until proven guilty.
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Sterling Heights Man Sentenced for Sports BriberyRead the Press Release
A Sterling Heights man was sentenced to almost six years in federal prison today for sports bribery, fraud and unlawfully possessing a gun, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Detroit Field Office, and Special Agent in Charge Anthony V. Mohatt, U.S. Department of Agriculture, Office of Inspector General.
U.S. District Judge Mark Goldsmith sentenced Ghazi Manni, 58, to 70 months in prison, three years of supervised release, and ordered him to pay restitution of $700,000 and to forfeit $700,000 to the government.
According to court records, between December 2005 and December 2006, Manni and codefendant Mitchell Karam, who is awaiting sentencing, paid money to a professional jockey to influence the results of races at Tampa Bay Downs in Tampa, Florida, and elsewhere. The indictment alleges that Manni and Karam then used the simulcast pari-mutuel wagering system to place bets on the fixed races. Manni pleaded guilty to paying University of Toledo athletes to affect the point spread of football and basketball games in 2005 and 2006. He also pleaded guilty to paying a jockey to fix horse races at a racetrack in Florida from 2004 to 2006. He also pleaded guilty to paying cash for food stamps at King Cole Foods in 2010 and 2011. Manni had been previously convicted by a jury of unlawfully possessing a gun and ammunition, and today was resentenced for those crimes as well.
Before imposing the sentence, Judge Goldsmith noted that Manni’s crimes all were the product of deliberation and spanned long periods. He also noted that Manni’s sports bribery crimes destroyed the careers of the athletes he had corrupted. Judge Goldsmith stated that the sentence was necessary to protect the public from further crimes by Manni.
“These bribery offenses were significant crimes not only because they affected fair play in the particular games and races involved, but also because they exploited young athletes and undermined public confidence in the sports themselves,” McQuade said.
The sports bribery cases were investigated by special agents of the Federal Bureau of Investigation. The food stamp fraud case was investigated by the United States Department of Agriculture, Office of Inspector General.