Eastern District of Michigan
Press releases recorded for this federal judicial district.
Michigan Small Business, Slifco Electric, LLC, Pays over $1.4 Million to Settle False Claims Act Allegations Regarding Paycheck Protection ProgramRead the Press Release
DETROIT – Acting United States Attorney Julie A. Beck announced today that a Sterling Heights, Michigan small business, Slifco Electric, LLC, which is wholly owned by John P. Slifco, has paid $1,460,062 to settle allegations that it violated the False Claims Act by falsely certifying to the U.S. Small Business Administration (SBA) that it was eligible for full loan forgiveness under the Paycheck Protection Program (PPP).
Congress created the PPP in March 2020 to provide emergency financial assistance to American businesses suffering from the economic effects of the COVID-19 pandemic. Under the PPP, eligible small businesses could receive forgivable loans guaranteed by the SBA. When applying for PPP loan forgiveness, borrowers were required to certify the truthfulness and accuracy of information provided to the SBA, including disclosing whether the borrower had paid any dividends or other capital distributions to its owner(s) during the loan forgiveness covered period.
In April 2020, Slifco Electric obtained a first draw PPP loan for $2,633,170. The United States alleged that Slifco Electric falsely certified its eligibility for full forgiveness of that loan, given its failure to disclose that, from March 13, 2020, through the end of the loan forgiveness covered period, Slifco Electric paid $730,031 in capital distributions to its only owner, John P. Slifco, for Mr. Slifco’s personal expenses.
“When businesses and individuals obtained COVID-19 relief funds that they didn’t deserve, taxpayers were cheated,” said Acting U.S. Attorney Julie A. Beck for the Eastern District of Michigan. “This office is committed to addressing fraud perpetrated against government programs, and we will continue to hold accountable those who violate the law.”
“The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office, SBA’s Office of Inspector General and other Federal law enforcement agencies, as well as private individuals who uncover fraudulent conduct to recover the product of this fraud as well as penalties,” said SBA General Counsel Wendell Davis.
This matter was handled by Assistant U.S. Attorney Anthony Gentner from the United States Attorney’s Office for the Eastern District of Michigan, with assistance from the SBA’s Office of General Counsel.
Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at:
https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
The claims resolved by the settlement are allegations only; there has been no determination of liability.Former Detroit Riverfront Conservancy Chief Financial Officer Sentenced for Embezzling over $40 Million from the ConservancyRead the Press Release
Former Detroit Riverfront Conservancy Chief Financial Officer
Sentenced for Embezzling over $40 Million from the Conservancy
DETROIT - Former Detroit Riverfront Conservancy Chief Financial Officer William A. Smith was sentenced to 19 years of imprisonment today for embezzling over $40 million from his employer over an eleven-year period. Smith was also sentenced to a three-year term of supervised release, ordered to pay approximately $48 million in restitution, and ordered to forfeit ill-gotten gains that were traceable to his scheme, said Julie A. Beck, Acting United States Attorney for the Eastern District of Michigan.
Beck was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI’s Detroit Field Office, and Charles Miller, Special Agent in Charge of the IRS-Criminal Investigations Detroit Field Office.
Smith, 52, pleaded guilty in November 2024 to one count of wire fraud and one count of money laundering before United States District Judge Susan K. DeClercq.
Acting United States Attorney Beck stated,“William Smith stole an astonishing amount of money from an important community institution, and he spent that money to finance an extravagant lifestyle. Every dollar that Smith spent on luxury goods for himself is a dollar that the Conservancy could not spent beautifying and improving our city’s riverfront. This is one of the most egregious economic crimes in recent memory in this District. Smith has now been held accountable for his criminal activity, and we hope that today’s sentence deters any others who contemplate enriching themselves at the expense of a public trust.”
"Today’s sentencing of William Smith marks the conclusion of a scheme, spanning more than a decade, deeply violating the trust of his employer and the community,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI Detroit Field Office. “Mr. Smith exploited his position of authority for personal financial gain. This outcome is the hard work and dedication from members assigned to the FBI Detroit’s Complex Financial Crimes (CFC) Squad and the successful prosecution by the U.S. Attorney’s Office of the Eastern District of Michigan. We remain committed to working with our partners to investigate and pursue those who violate federal laws.”
“As the trusted leader of a local advocacy nonprofit, William Smith had a duty to be a responsible steward of the organization’s funds, especially the money raised to beautify and increase access to the Detroit Riverfront,” said Special Agent in Charge Charles Miller, Detroit Field Office, IRS Criminal Investigation (IRS-CI). “Mr. Smith proved he did not deserve that trust when he stole over $40 million from the Conservancy and by proxy, everyone who would enjoy the riverfront for many years to come. IRS Criminal Investigation is proud to work with the US Attorney’s Office of the Eastern District of Michigan and our law enforcement partners to ensure that justice is served and Mr. Smith is held accountable for such an egregious breach of trust: stealing a huge amount of money to fund his personal lifestyle.”
According to court documents, Smith was employed as the Chief Financial Officer for the Detroit Riverfront Conservancy, Inc. (the Conservancy) from 2011 through May 2024. The Conservancy is a 501(c)(3) organization formed with the mission of developing access to the Detroit riverfront. The Conservancy envisions creation of a continuous Riverwalk from the Ambassador Bridge in the west to Gabriel Richard Park in the east, along with plazas, pavilions, and green spaces. Funding for the Conservancy is provided by both private donors and public grants. In his position as Chief Financial Officer of the Conservancy, Smith enjoyed substantial discretion in overseeing and managing the Conservancy’s financial affairs.
Court Documents indicate that beginning no later than November 2012 and continuing until May 2024, Smith orchestrated a scheme to embezzle millions of dollars in funds belonging to the Conservancy. The embezzlement scheme took three principal forms:
• First, Smith diverted Conservancy funds from the organization’s bank accounts to a bank account in the name of “The Joseph Group, Inc.,” an entity owned and controlled by Smith. The Joseph Group was not an approved vendor for the Conservancy and provided no goods or services of any kind to the organization. However, between February 2013 and May 2024, Smith transferred approximately $24.4 million from the Conservancy’s bank accounts to an account in the name of “The Joseph Group.”
• Second, Smith maintained an American Express account in the name of another of the many entities he owned and controlled, this one called “William Smith & Associates LLC.” There were four American Express credit cards issued on this account. Between November 2012 and May 2024, Smith used approximately $14.9 million in Conservancy funds to pay off purchases made on this account. None of these expenditures was authorized by the Conservancy, which maintained other credit card accounts for Conservancy purchases. Smith used the American Express account to purchase furniture, designer clothing, handbags, lawn care services, airline tickets, and other consumer goods and services for himself and his family.
• Third, Smith used Conservancy funds to purchase cashier’s checks from various financial institutions. These cashier check purchases were unauthorized, and Smith used the cashier’s checks for his own purposes without the knowledge or approval of the Conservancy’s Board of Directors.
Court documents show that Smith engaged in various practices to cover up and sustain this massive fraud scheme. In some instances, Smith falsified bank statements that he provided to the Conservancy’s bookkeeper, altering or deleting unauthorized transfers on the statements in order to keep them off of the Conservancy’s books. In at least one other instance, he took out a line of credit with a financial institution (Citizen’s Bank) on behalf of the Conservancy. Smith claimed to be acting with the authorization of the Conservancy’s Board of Directors in taking out this line of credit. In fact, Smith had no such authority, and the documents he provided Citizen’s Bank purporting to show that he had such authorization were forgeries. Smith used the funds from this line of credit (which eventually totaled $5 million) to infuse monies into the Conservancy’s bank accounts to help cover up his substantial embezzlement from those accounts.
Sentencing documents indicate that Smith spent the money he appropriated from the Conservancy to live a lavish and extravagant lifestyle. Over the course of his scheme, Smith spent enormous sums of money on basketball tickets, cruises, private jet travel, designer clothing, jewelry, and the like.
The case was prosecuted by Assistant United States Attorneys John K. Neal and Robert A. Moran. Assistant United States Attorneys K. Craig Welkener and Jessica Nathan handled the asset forfeiture and restitution. The FBI and the Internal Revenue Service-Criminal Investigations Division conducted the investigation.
Pontiac Man Pleads Guilty in $4M Identity Theft and Unemployment Fraud CaseRead the Press Release
DETROIT – A Pontiac man has pleaded guilty to committing aggravated identity theft and wire fraud as part of large-scale, multi-state Unemployment Insurance benefit fraud scheme in which he and co-conspirators fraudulently obtained debit cards loaded with more than $4 million in Pandemic Unemployment Assistance funds, Acting United States Attorney Julie A. Beck announced today.
Joining in the announcement were Megan Howell, Acting Special Agent-in-Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General, Special Agent-in-Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Detroit Division, Charles Miller, Special Agent-in-Charge, Internal Revenue Service – Criminal Investigations, Douglas Zloto, Special Agent-in-Charge, U.S. Secret Service, Sean McStravick, Acting Inspector-in-Charge, U.S. Postal Service, Office of Inspector General, and Director Jason Palmer, State of Michigan Unemployment Insurance Agency.
Terrance Calhoun, Jr., 36, of Pontiac, Michigan, pleaded guilty to committing aggravated identity theft, wire fraud, conspiracy to commit wire fraud, and to possessing 15 or more unauthorized access devices, all in relation to acts of unemployment insurance fraud.
According to his plea agreement, Calhoun Jr., and others, used stolen personal identification and filed hundreds of false unemployment claims with state unemployment insurance agencies in Michigan, Arizona, and Maryland over a six-month period in the names of other individuals without their knowledge or consent. Those false claims resulted in hundreds of debit cards loaded with over $4 million in unemployment insurance funds being mailed to addresses controlled by Calhoun Jr. and his co-conspirators. Roughly $1.6 million dollars in purchases and cash withdrawals were then successfully made from the cards.
As described within a prior complaint, when agents executed search warrants at the principal mailing addresses used for the fraudulent unemployment insurance benefit claims, including the residence of Calhoun Jr., agents seized numerous documents containing the personal identification information of other individuals, multiple debit cards in the names of numerous other individuals, and firearms.
Calhoun now faces a possible sentence of up to 20-years’ imprisonment for each of the wire fraud counts to which he has pleaded guilty, a possible sentence of up to 10-years’ imprisonment for possessing 15 or more unauthorized access devices, and a mandatorily consecutive 2-year sentence for the aggravated identity theft charge to which he has pleaded guilty.
Sentencing is set for August 27, 2025 before United States District Court Judge Judith E. Levy.
“Taxpayer money diverted into the pockets of criminals means less money going to Michiganders who actually need help getting through difficult financial times and who follow the rules when seeking assistance,” said Acting US Attorney Beck. “These charges reflect our office’s ongoing commitment to the community by investigating such schemes and bringing those who commit these crimes to justice.”
“Terrance Calhoun Jr and his co-conspirators engaged in a scheme to defraud state workforce agencies in Michigan, Arizona, and Maryland by filing hundreds of fraudulent unemployment insurance (UI) claims. As a result, Calhoun enriched himself by stealing taxpayer resources intended for unemployed American workers. We will continue to work with our law enforcement partners to protect the integrity of the UI program from those who seek to exploit it,” said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
“Individuals who commit identity theft and unemployment insurance fraud of this magnitude deserve to be punished to the fullest extent of the law,” said Charles Miller, Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation (IRS-CI). “Terrance Calhoun, Jr. and Jermaine Arnett demonstrated a blatant disregard of the integrity of the multiple states’ unemployment insurance systems and caused immeasurable hardship to innocent victims. IRS-CI remains committed to the pursuit of identity theft and financial fraud, and together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar crimes accountable.”
"The FBI in Michigan, alongside our law enforcement partners, remains steadfast in protecting the community and investigating individuals who violate federal law,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI Detroit Field Office. “Today’s guilty plea by Terrance Calhoun, whose involvement in a multi-state fraud scheme, is a clear reminder that bad actors will be stopped, and we will ensure integrity will prevail.”
The case was jointly investigated by agents from the Department of Labor Office of the Inspector General, the Internal Revenue Service – Criminal Investigations Division, the Federal Bureau of Investigation, the Bureau of Immigration and Customs Enforcement, the United States Secret Service, the United States Postal Service Office of the Inspector General, and the State of Michigan -Unemployment Insurance Agency. The case is being prosecuted by Assistant United States Attorneys Carl D. Gilmer-Hill and Jessica A. Nathan.
Highland Park Man Involved in Violent Robberies Sentenced to 20 Years in PrisonRead the Press Release
DETROIT – Christopher Bey, a 50-year old from Highland Park, Michigan, was sentenced yesterday to 20 years in federal prison after pleading guilty to Interference with Commerce by Robbery, Use of a Firearm in Relation to a Crime of Violence, and being a Felon in Possession of a Firearm relating to an armed robbery, shooting, and attempted armed robbery, all of which occurred in the City of Pontiac, Acting United States Attorney Julie A. Beck announced today.
Beck was joined in the announcement by Special Agent in Charge James Dier of the ATF’s Detroit Division and Sheriff Michael Bouchard of the Oakland County Sheriff’s Office.
“Removing violent offenders from our community is one the office’s top priorities,” stated Acting U.S. Attorney Julie Beck. “We will not stop being laser-focused on aggressively prosecuting dangerous individuals who persist in terrorizing our citizens. The strategies we use to identify the drivers of violence, who we then prosecute, works. We are truly making our community safer,” she stated.
“This 20-year sentence is RIGHTEOUS. Mr. Bey is a sociopathic serial shooter who has consistently shown an inability to follow societal rules. It most certainly sends a clear message: if you use a firearm to shoot an innocent member of our community, there is absolutely no limit on the resources ATF will expend to hunt you down and hold you accountable for your cowardly conduct,” said ATF Detroit Special Agent in Charge James Deir. “Everyone deserves to feel safe when they go to work to provide for their family. Armed criminals motivated by greed have no place in our Michigan community, and ATF will tirelessly work with our state and local partners to remove the most dangerous offenders off our streets and put them where they belong: behind bars.”
Bey robbed a Boost Mobile store in the city of Pontiac on February 4, 2023. After entering the store, Bey brandished a firearm and demanded money from the store employee. The employee fully complied with Bey’s demands. Nevertheless, Bey pulled a potato from his pants, affixed it to the barrel of the revolver, and shot the victim twice in the stomach. The victim was in the hospital for approximately one month. Bey later admitted to the ATF that he got the idea to use the potato as a silencer from watching a movie.
Bey attempted to rob a Dollar General Store in the City of Pontiac on March 24, 2023. After entering the store, Bey handed a store employee a note while pointing a gun at the employee. He ordered the employee to the storeroom and directed the employee to apply handcuffs to himself. A customer accidentally entered the storeroom and fought with Bey, who ran out of the store.
Bey was also charged with being a felon in possession of a firearm. According to court records, during the robbery investigations, law enforcement observed social media posts of Bey holding a firearm with his face obscured by a ski mask. Law enforcement was able to use other images from his social media accounts to determine Bey’s identity.
On July 26, 2023, the Pontiac Gun Violence Task Force (GVTF), assisted by, Oakland County Sheriff’s Office’s K9 Unit, Customs Border Protection - Aviation Enforcement, and the Detroit Police Department, arrested Christopher Lee Bey. Bey has been in custody since his arrest.
The GVTF was established by the ATF and the Oakland County Sheriff’s Office. The GVTF is tasked with investigating the unlawful possession of firearms and the use of firearms to commit violent crimes within Pontiac, Oakland County, and the Eastern District of Michigan.
This case was prosecuted by the Violent & Organized Crime Unit of the United States Attorney’s Office.
Member of a Violent National Gang Convicted of Violent Crime in Aid of Racketeering in DetroitRead the Press Release
DETROIT – After a week-long trial in federal court, a jury convicted Anthony Zigler, a member of the Almighty Vice Lords Nation of Violent Crime in Aid of Racketeering (VCAR), Acting United States Attorney Julie A. Beck announced today.
Beck was joined in the announcement by James Deir, Special Agent in Charge of the Detroit Field Office of the Alcohol, Tobacco, Firearms and Explosives (ATF).
Evidence at trial proved the Almighty Vice Lords Nation (AVLN) was a sprawling criminal enterprise which committed acts of violence, drug dealing, and other crimes, across the country. The trial involved a member of the Conversative Vice Lord branch of the AVLN. The jury specifically found that Zigler committed a violent prison stabbing to maintain or increase his position within the gang. The evidence at trial showed that Zigler stabbed the victim fifteen times with a prison-made knife in the head, neck, and abdomen, puncturing his lungs. The jury convicted Zigler of VCAR. Zigler faces up to 20 years in federal prison.
“The thorough and dedicated work of attorneys in our office combined with the detailed investigation done by our ATF and DPD partners convinced a jury to find a violent and dangerous gang member guilty of serious crimes. With this conviction, our community is safer. Our district’s approach to violent crime investigations and prosecutions works,” Acting United States Attorney Julie A. Beck said.
“Yesterday’s verdict proves once again that the Almighty Vice Lord Nation has been crippled locally and nationally. Their dismantling is another example of how senseless violence is being dealt with in Detroit. Anthony Ziegler's willingness to partake in gang-ordered violence had far-reaching consequences. He now has a federal VCAR felony conviction on his extensive criminal pedigree and should be out of commission for a very long time. Violent acts in furtherance of a criminal organization will not be tolerated in Detroit or in our prisons and will immediately result in delayed freedom, because you’re not going anywhere but back to prison……for an extended period of time,” said ATF Detroit Special Agent in Charge James Deir. “The ATF and our federal, state and local partners will continue to target violent gang members wherever they operate, street or prison it makes no difference, if you're pushing violence for your crew, we're coming.”
This is the third trial in the Eastern District of Michigan in approximately a year and a half involving the Almighty Vice Lord Nation. In November 2023, three national leaders of the gang were convicted of RICO conspiracy and other crimes, and in April 2024, three gang members were convicted of RICO conspiracy and other crimes, and a fourth defendant was convicted of drug offenses, in federal court in Detroit.
Leader of Detroit Gang Sentenced to 20 Years in Prison for Drug Trafficking Conspiracy and Money LaunderingRead the Press Release
DETROIT – A 34-year-old Shelby Township man, Martaze Davis, was sentenced to 20 years in prison today for trafficking methamphetamine and laundering drug proceeds, Acting United States Attorney Julie A. Beck announced.
Beck was joined in the announcement by Andrew Lawton, Acting Special Agent in Charge of Drug Enforcement Administration, Cheyvoryea Gibson, Special Agent in Charge of Federal Bureau of Investigation, and Charles E. Miller, Special Agent in Charge of the Internal Revenue Service Criminal Investigations, Detroit Field Divisions.
Davis was a leader in a Detroit gang, 42 Hustle Boys. The 42 Hustle Boys and a rival gang, the Seven Mile Bloods, engaged in a longstanding and deadly feud. This investigation and prosecution, which began in 2023, focused on Davis’s leadership of a drug conspiracy that sent members to California to purchase methamphetamine brought into the United States from Mexico and transport it across the United States for distribution in Michigan, Ohio, West Virginia, and Tennessee.
On October 24, 2023, Davis and codefendant Alexander Polanco, 28, conspired to load a rental car occupied by codefendants Taneeya Richard, 25, and Dejon Howard-Henderson, 24, with 38.9 kilograms of methamphetamine. The following day, officers stopped the rental car in Texas and seized the methamphetamine. Davis also laundered drug proceeds through his personal and business bank accounts intending to conceal the nature and source of the proceeds.
“Our office vigorously pursues drug traffickers, including gang leaders and members, who push dangerous drugs like methamphetamine into our communities with indifference to the tragedy it inflicts. Thanks to the outstanding teamwork among the Drug Enforcement Administration, Internal Revenue Service Criminal Division, Federal Bureau of Investigation, and U.S. Attorney’s Office, a dangerous drug trafficker and money launderer has been removed from our streets,” stated Acting United States Attorney Julie A. Beck.
"Bringing members of violent street gangs to justice is one of our top operational priorities in the DEA Detroit Division. Mr. Davis and his 42 Hustle Boys co-conspirators are responsible for fueling untold suffering by funneling massive amounts of methamphetamine into areas already hard-hit by the opioid crisis. Today's sentence sends another clear message to drug trafficking organizations that their criminal behavior will not be tolerated and will be met with consequences," said Andrew Lawton, Acting Special Agent in Charge of Drug Enforcement Administration.
“Today’s sentencing of Martaze Davis represents a significant victory in our ongoing fight against organized crime and drug trafficking in Detroit,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI’s Detroit Field Office. “This case underscores the powerful collaboration between the FBI, DEA, and Detroit’s IRS Criminal Division. Together, we remain steadfast in our mission to disrupt criminal networks, dismantle money laundering operations, and protect our communities. The removal of Mr. Davis, a dangerous Detroit gang leader, from the streets is a pivotal step in safeguarding Michigan and ensuring the safety of all its residents. Our combined efforts reflect our unwavering commitment to keeping Detroit and the surrounding areas free from criminal activity.”
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations,” said Charles Miller, Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation. “We will continue to be relentless in our mission to dismantle drug trafficking organizations and bring the criminals who run them to justice.”
The Honorable Sean F. Cox sentenced Davis to 20 years in prison.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigations, and Federal Bureau of Investigation. It was prosecuted by AUSA Paul Kuebler.
United States Attorney’s Office Observes National Crime Victims’ Rights WeekRead the Press Release
DETROIT, MI – In observance of National Crime Victims’ Rights Week (NCVRW), April 6-12, 2025, the United States Attorney’s Office for the Eastern District of Michigan, along with the Detroit Crime Victims’ Action Team, will be recognizing crime victims and those who have dedicated their lives to serve and assist victims of crime.
“My office stands ready to support victims and ensure they know their rights,” stated Acting United States Attorney Julie Beck. “Our staff of professionals are dedicated to supporting federal crime victims by providing them with essential services they need to help reshape their futures.”
“We have deep respect and gratitude for crime victims who courageously come forward to report their crimes to the police and come to testify in court. We ask a lot from them since they must re-live the violence and trauma they have experienced. Their families and friends are often victims of secondhand trauma. We thank you for your commitment to the criminal justice system. We could not perform our work without you,” said Wayne County Prosecutor Kym Worthy.
Each year in April, the federal Office for Victims of Crime (OVC) leads communities throughout the country in their annual observances of National Crime Victims’ Rights Week by raising awareness of victims' rights and honoring crime victims and those who advocate on their behalf. This year’s theme of KINSHIP is a call to action to recognize that shared humanity should be at the center of supporting all survivors and victims of crime. KINSHIP is a state of being with survivors that drives vital connections to services, rights, and healing. KINSHIP is where victim advocacy begins.
This year’s Crime Victims’ Rights Week events will kick off with a Survivor Walk-Sunday, April 6, 2025 @ 10:00 am on Belle Isle. The meeting point is adjacent to the Fountain. A second event - Crime Victim Awareness Event- Know the Signs- Education, Awareness and Action - will take place on Tuesday April 8, 2025 @ 2:30 pm at Henry Ford College- Rosenau Rooms, Bldg L (5101 Evergreen Road, Dearborn, MI). The main event will be a community and resource fair on Friday, April 11 @ 12pm at the Criminal Justice Center, 5301 Russel Street, Detroit.
Nicole Marcell, a survivor of domestic violence will be the guest speaker and share her emotional story of how she is using her voice to help others.
Following the event, the Wayne County Prosecutor’s Office, Michigan, will be hosting a Wellness Event featuring vendors, food trucks, resources, and more. For additional information about 2025 National Crime Victims’ Rights Week activities or about victims’ rights and services in Wayne County, please contact Mechelle Donahoo, Director Victim Services, 313-224-5626 or visit our website at https://www.waynecounty.com/elected/prosecutor/home/aspx
All are welcome to attend this event.
This year marks the 41st anniversary of the Victims of Crime Act, commonly shortened to VOCA. This act was passed by Congress and signed into law on October 12, 1984. VOCA established the Crime Victims Fund (CVF), a Federal Victim Notification System, discretionary grants for victim service organizations, victim assistance positions in the Department of Justice, financial support for the Children’s Justice Act Program, and assistance and compensation for victims and survivors of terrorism.
For more information about how to support all victims of crime, visit OVC’s website at www.ovc.ojp.gov.
Detroit Man Sentenced to 40 months in Prison for Drug Trafficking ConspiracyRead the Press Release
DETROIT – A 52-year-old Detroit man, Israel Crumpton, was sentenced to 40 months in prison yesterday for trafficking heroin laced with fentanyl and cocaine, Acting United States Attorney Julie A. Beck announced.
Beck was joined in the announcement by James Deir, Special Agent in Charge of the Detroit Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
For over a six-month period in 2018 and 2019, Crumpton and several lesser co-conspirators distributed substantial quantities of heroin laced with fentanyl and crack cocaine in the 7700 block of East Palmer Street in Detroit. Crumpton led and organized the drug distribution business. As the leader, he secured bulk narcotics from his suppliers and sold or directed others to sell those drugs to resellers or users, generating significant cash proceeds.
In November 2018, the County of Macomb Enforcement Team (COMET) became aware of Crumpton’s drug distribution business. COMET members subsequently surveilled Crumpton’s “trap house” and “stash house” in the 7700 block of East Palmer Street, observing numerous apparent illicit drug transactions occurring there. Based on its surveillance and other investigative activities, COMET secured search warrants for the two E. Palmer Street locations and another location on the westside of Detroit. Upon executing the search warrants, COMET members found and seized large quantities of distributable narcotics, drug paraphernalia, numerous firearms and ammunition, and over $40,000 in cash proceeds. Crumpton and a co-conspirator were charged with multiple counts of drug trafficking and one count of firearm possession. The co-conspirator pled guilty to drug trafficking. And, in May 2024, a jury convicted Crumpton of the drug trafficking charges.
Yesterday, the Honorable Denise Page Hood sentenced Crumpton to 40 months in prison.
“Our office aggressively pursues drug traffickers who push substantial quantities of dangerous drugs like heroin, fentanyl, and crack cocaine into our neighborhoods for personal gain and with indifference to the tragedy they inflict. Thanks to the outstanding teamwork among the Michigan State Police’s County of Macomb Enforcement Team, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and U.S. Attorney’s Office, a dangerous drug trafficker has been removed from our streets,” stated Acting United States Attorney Julie A. Beck.
“Isreal Crumpton sold a poison in our community out of pure greed, all while armed with illegal firearms. ATF and the Michigan State Police are united in their partnership to identify and target for federal prosecution armed drug traffickers of fentanyl in our community. Mr. Crumpton’s plight should serve as a reminder that accountability is inevitable across Michigan for people who illegally possess firearms in furtherance of peddling poison in our community. The message should be very clear: If you deal deadly drugs while armed with an illegal firearm, you’re not just on our radar – you’re on the fast track to prison; so, pack a bag, we’re coming for you,” said James Deir, Special Agent in Charge of the ATF’s Detroit Division.
This case was investigated by the Michigan State Police’s County of Macomb Enforcement Team, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by AUSAs Pat Martin and Sarah Alsaden and investigated by AUSA Paul Kuebler.
Justice Department to Surge Resources to Indian Country to Investigate Unresolved Violent CrimesRead the Press Release
BAY CITY – The Justice Department today announced that it will surge FBI assets across the country to address unresolved violent crimes in Indian Country, including crimes relating to missing and murdered indigenous persons.
FBI will send 60 personnel, rotating in 90-day temporary duty assignments over a six-month period. This operation is the longest and most intense national deployment of FBI resources to address Indian Country crime to date. FBI personnel will support field offices in Albuquerque; Denver; Detroit; Jackson, Miss.; Minneapolis; Oklahoma City; Phoenix; Portland, OR.; Seattle; and Salt Lake City. The FBI will work in partnership with the Bureau of Indian Affairs and Tribal law enforcement agencies across jurisdictions.
FBI personnel will be assisted by the Bureau of Indian Affairs Missing and Murdered Unit, and they will use the latest forensic evidence processing tools to solve cases and hold perpetrators accountable. U.S. Attorney’s Offices will aggressively prosecute case referrals.
“Crime rates in American Indian and Alaska Native communities are unacceptably high. By surging FBI resources and collaborating closely with US Attorneys and Tribal law enforcement to prosecute cases, the Department of Justice will help deliver the accountability that these communities deserve,” said Attorney General Pam Bondi.
“The FBI will manhunt violent criminals on all lands – and Operation Not Forgotten ensures a surge in resources to locate violent offenders on tribal lands and find those who have gone missing,” said FBI Director Kash Patel.
“For too long the crisis of missing and murdered indigenous persons has devastated Tribal communities,” said Acting United States Attorney Julie Beck. “Our office stands shoulder-to-shoulder with our local, state, federal, and tribal law enforcement partners to hold accountable those who perpetrate violence against Native Americans.”
Indian Country faces persistent levels of crime and victimization. At the beginning of Fiscal Year 2025, FBI’s Indian Country program had approximately 4,300 open investigations, including over 900 death investigations, 1,000 child abuse investigations, and more than 500 domestic violence and adult sexual abuse investigations.
Operation Not Forgotten renews efforts begun during President Trump’s first term under E.O. 13898, Establishing the Task Force on Missing and Murdered American Indians and Alaska Natives. This is the third deployment under Operation Not Forgotten, which has provided investigative support to over 500 cases in the past two years. Combined, these operations resulted in the recovery of 10 child victims, 52 arrests, and 25 indictments or judicial complaints.
Operation Not Forgotten also expands upon the resources deployed in recent years to address cases of missing and murdered indigenous people. The effort will be supported by the Department’s MMIP Regional Outreach Program, which places attorneys and coordinators in U.S. Attorneys’ Offices across the United States to help prevent and respond to cases of missing or murdered indigenous people.
Detroit Man Sentenced to Just over 2 Years in Federal Prison for Firing Gun on Crowded SidewalkRead the Press Release
DETROIT - A man from Detroit, Michigan was sentenced today for a July 2024 shooting near Grand Circus Park announced Acting United States Attorney Julie A. Beck.
Beck was joined in the announcement by James Deir, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Detroit Field Division and Detroit Police Chief Todd Bettison.
Christopher Wade, 30, was sentenced to 25 months in prison by United States District Judge Matthew F. Leitman.
According to court records, following a dispute, Wade opened fire at the busy intersection of Woodward Avenue and Adams Avenue, firing nine rounds into the air. Thankfully, no one was injured, but a witness who was driving in the area reported that one of the rounds struck her vehicle. Officers quickly responded to the scene and apprehended Wade without further incident. Security cameras captured the shooting on video. This was the second time within a month that Wade opened fire in public and the fourth time in the last 10 years.
Wade pleaded guilty to felon in possession of a firearm in November of 2024.
This case was prosecuted by Assistant United States Attorneys Philip M. Jacques. The investigation was conducted jointly by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the Detroit Police Department.
Defendant Who Failed to Surrender for Service of Prison Sentence Gets More Prison TimeRead the Press Release
DETROIT – Tamara Smith, 39, of Detroit, was sentenced to 18 months in prison for failing to surrender to the United States Marshal in Detroit for service of a prison sentence as ordered by the Court, announced Acting United States Attorney, Julie A. Beck.
Beck was joined in the announcement by Megan Howell, Acting Special Agent-in-Charge of the Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
On June 26, 2024, U.S. District Judge Jonathan J.C. Grey sentenced Smith to imprisonment for 60 months for her convictions for wire fraud and aggravated identity theft. At that time, Smith was out on bond. Rather than being taken immediately into custody to commence service of her 60-month sentence, Smith asked for more time on bond, assuring the Court she would voluntarily surrender for service of her sentence when ordered by the Court. The Court agreed to her request, ordering her to voluntarily surrender to the United States Marshal in Detroit on July 1, 2024. Smith acknowledged her obligation in court at the time of the sentencing hearing.
Despite being aware of her representation to the Court that she would voluntarily turn herself in, Smith deliberately failed to self-surrender to the U.S. Marshal as ordered. On July 2, 2024, the Court issued an arrest warrant for Smith for failing to surrender. Smith failed to surrender as ordered, and the U.S. Marshal’s Service arrested her on July 18, 2024.
Judge Grey’s 18-month sentence for failing to surrender as ordered will run consecutive to Smith’s underlying 60-month sentence for fraud and identity theft.
“This case should send a message to anyone who deliberately chooses to violate a court order in a criminal case that you will be punished. Orders of courts must be respected and followed. This defendant violated the trust of the court and abused the criminal justice system - she needed to be held accountable,” said Acting United States Attorney Beck.
"Tamara Smith has been convicted multiple times of defrauding unemployment insurance (UI) programs that are intended to support unemployed American workers. Following her recent conviction and sentencing related to UI fraud charges, she failed to surrender as mandated and made efforts to avoid apprehension. This sentencing affirms the Office of Inspector General’s commitment to work with our law enforcement partners to hold accountable those who attempt to circumvent the justice system,” said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
The investigation of this case was conducted by the U.S. Department of Labor, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Patrick Corbett.
Saginaw Sex Offender Sentenced to Federal Prison for Distributing Child PornographyRead the Press Release
BAY CITY – Ayden Burge, 22, of Saginaw was sentenced on yesterday to over 17 years (210 months) in federal prison for distributing child pornography, Acting United States Attorney Julie A. Beck announced today.
Beck was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson of the Federal Bureau of Investigation’s Detroit Field Office.
United States District Court Judge Thomas L. Ludington imposed sentence on Burge following his guilty plea to distribution of child pornography. Judge Ludington also sentenced Burge to 5 years of federal supervised release following his release from incarceration.
In 2023, the Michigan State Police – Huron Undercover Narcotics Team was conducting a narcotics investigation which resulted in Burge’s arrest. During the arrest, the police seized his electronic devices. The Michigan State Police Computer Crimes Unit forensically analyzed Burge’s devices and discovered conversations on the instant messaging app Kik on which Burge discussed his desire to sexually assault minor children and distributed child sexually abusive material. Police also found several images and videos of other child sexually abusive material.
“Distributing child pornography victimizes the most innocent and vulnerable members of our community - children,” stated Acting U.S. Attorney Beck. “A critical mission for our office is to protect children from those predators who would harm them,” said Acting US. Attorney Beck. “A lengthy sentence can help protect the community generally and children more specifically.”
"The prison sentence given to Ayden Burge, a convicted sex offender, is a significant victory in our ongoing fight against sexual predators who exploit children," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "This sentence ensures that Burge will not be able to harm any more innocent children for a long time. I am deeply grateful for the tireless efforts of our FBI Detroit Bay City Resident Agency, the Michigan State Police (MSP) Huron Undercover Narcotics Team, and the MSP Computer Crimes Unit. Their unwavering dedication to protecting our most vulnerable citizens and preventing further victimization has been invaluable. I also want to sincerely thank the U.S. Attorney's Office for the Eastern District of Michigan for their crucial role in holding Mr. Burge fully accountable for his heinous actions."
This case was investigated by the Michigan State Police, the Michigan State Police Computer Crimes Unit, and the FBI. The case was prosecuted by Assistant United States Attorney Katharine Hemann.
Former University of Michigan Football Quarterbacks Coach and Co-Offensive Coordinator Indicted on Charges of Unauthorized Access to Computers and Aggravated Identity TheftRead the Press Release
DETROIT – Former University of Michigan Co-Offensive Coordinator Matthew Weiss—age 42, of Ann Arbor—was charged today in a 24-count indictment alleging 14 counts of unauthorized access to computers and 10 counts of aggravated identity theft, Acting United States Attorney Julie A. Beck announced.
Beck was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge, FBI Detroit Field Office (Michigan)
According to the indictment, between approximately 2015 and January 2023, Weiss gained unauthorized access to student athlete databases of more than 100 colleges and universities that were maintained by a third-party vendor. After gaining access to these databases, Weiss downloaded the personally identifiable information and medical data of more than 150,000 athletes. Using the information that he obtained from the student athlete databases and his own internet research, Weiss was able to obtain access to the social media, email, and/or cloud storage accounts of more than 2,000 target athletes. Weiss also illegally obtained access to the social media, email, and/or cloud storage accounts of more than 1,300 additional students and/or alumni from universities across the country.
Once Weiss obtained access to these accounts, he downloaded personal, intimate digital photographs and videos that were never intended to be shared beyond intimate partners.
“Our office will move aggressively to prosecute computer hacking to protect the private accounts of our citizens,” said Acting U.S. Attorney Julie Beck. “We stand ready with our law enforcement partners to bring those who illegally invade the privacy of others to justice.”
“Today’s indictment of Matthew Weiss underscores the commitment and meticulous investigative efforts of our law enforcement professionals,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI Detroit Cyber Task Force, in close collaboration with the University of Michigan Police Department, worked relentlessly on this case to safeguard and protect our community.”
If convicted, Weiss faces a maximum of five years imprisonment on each count of unauthorized access to computers and two years on each count of aggravated identity theft. Conviction on a count of aggravated identity theft triggers a two-year mandatory minimum sentence, to be served consecutive to the sentence imposed for the underlying offense.
An indictment is only a charge and is not evidence of guilt. It will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorneys Timothy Wyse and Patrick Corbett. The investigation is being conducted by the Federal Bureau of Investigation.
Florida Man Sentenced to Prison for Making Hate Crime Threats against the Council on American-Islamic Relations (“CAIR”) Michigan ChapterRead the Press Release
DETROIT – Michael Shapiro, 73, was sentenced today to 18 months in prison for issuing death threats to the Council on American-Islamic Relations (“CAIR”) Michigan Chapter, Acting United States Attorney Julie A. Beck announced.
Beck was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Division of the Federal Bureau of Investigation, and Chad Baugh, Chief of the Canton Police Department.
According to court documents, Shapiro, of West Palm Beach, Florida, placed three separate phone calls to CAIR’s office located in Canton, Michigan, and left voicemails containing the following threats:
- December 8, 2023: “I’m going to kill you bastards. I’m going to kill you bastards.”
- December 14, 2023: ““I’m going to kill you mother f*****g bastards. Muslims! I’m going to kill you mother f*****s. I’m going to kill you! I’m going to kill you! I’m going to kill you!”
- December 15, 2023: “You’re a violent people. Why do you come to America? Why do you come to Europe? Mother f*****s. You’re violent. You’re killers. You’re rapists. I’m going to kill you mother f*****s!”
Shapiro pleaded guilty on December 3, 2024 to transmitting a threat in interstate commerce. Shapiro also admitted that he intentionally selected CAIR as the victim of his threat because of the actual and perceived religion and national origin of the people who work at and are assisted by CAIR.
“No one should be able to instill fear on an entire community by threatening violence. Today’s sentence sends a strong message that people who do so, especially when motivated by bias, will be aggressively prosecuted and severely punished, ” Acting U.S. Attorney Beck said.
"Today's sentencing of Michael Shapiro highlights the severe consequences of hate-driven threats and sends a strong message to others with similar malicious intentions," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "The FBI in Michigan remains committed to investigating and dismantling individuals or groups that sow fear and hatred within our communities. Mr. Shapiro's sentence serves as a stark reminder of our critical role in investigating federal hate crimes. We are dedicated to fostering positive relationships with our community, including faith-based organizations. In partnership with the Canton Police Department and the successful prosecution by the U.S. Attorney's Office for the Eastern District of Michigan, we have ensured justice was served by holding Mr. Shapiro accountable for his actions.”
This case was investigated by the Federal Bureau of Investigation and the Canton Police Department and was prosecuted by Assistant U.S. Attorney Frances Lee Carlson.
Warren Man Sentenced to Prison for Hate Crime of Defacing Predominantly Black ChurchRead the Press Release
DETROIT – A Warren, Michigan man was sentenced today to 12 months in prison for spray-painting swastikas, the word “die,” and other graffiti on a predominantly Black church in Roseville, Michigan, Acting United States Attorney Julie Beck announced.
Beck was joined in the announcement by Acting Assistant Attorney General Mac Warner of the Justice Department’s Civil Rights Division, and Chevoryea Gibson, Special Agent in Charge of the Detroit Field Division of the Federal Bureau of Investigation.
According to court documents, David Bluer, 34, pleaded guilty on December 3, 2024, to one count of damaging religious property. As part of his guilty plea, Bluer admitted that in October 2021, he spray-painted several swastikas, the word “die,” and other graffiti on the Roseville church, because of the race and color of individuals associated with the church. Specifically, the defendant admitted that he intentionally defaced the church because the church serves a predominantly Black congregation and has a Black pastor. In addition, Bluer spray-painted swastikas, a racist slur and symbols, and other graffiti on the public bathroom of Trombly Park, in Warren, Michigan. The racist graffiti included the statement “DaviD KiLLS Ni**ERS.”
“The defendant’s attack, motivated by race and color, instilled fear in not only the mostly Black congregants of the church, but damaged the entire community’s sense of safety. Our office will always vigorously prosecute those who commit unlawful bias-motivated acts and seek justice for the victims,” Acting U.S. Attorney Beck said.
“The sentence of David Bluer sends a stern warning to anyone who seeks to invoke fear and hatred towards a specific group of individuals. The FBI is committed to upholding the U.S. Constitution, investigating civil rights violations and the protection of the American People,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. The hate-driven criminal acts committed by Mr. Bluer were halted through the relentless investigative efforts of members from the FBI Detroit’s Joint Terrorism Task Force, Roseville P.D., Warren P.D., as well as the U.S. Attorney’s Office for the Eastern District of Michigan, whose collaboration was crucial in securing this successful prosecution."
The FBI Detroit Field Office investigated the case.
Assistant U.S. Attorney Frances Carlson for the Eastern District of Michigan and Trial Attorney Erin Monju of the Justice Department’s Civil Rights Division prosecuted the case.
Former Employee of Marshall Mathers, AKA Eminem, Charged with Criminal Infringement of a Copyright and Interstate Transportation of Stolen GoodsRead the Press Release
DETROIT – Joseph Strange, 46, of Holly, Michigan and a former employee of Marshall Mathers, AKA Eminem, was charged in a criminal complaint with criminal infringement of a copyright and interstate transportation of stolen goods in connection with the sale of unreleased music created by Eminem, announced Acting United States Attorney Julie Beck.
Beck was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge, FBI Detroit Field Office (Michigan).
According to the criminal complaint, on or about January 16, 2025, the FBI was contacted by employees of Mathers’s music studio in Ferndale, Michigan who recently discovered unreleased music created by Mathers that was available on the internet. This music was still in the process of being developed by Mathers. The employees obtained an image of a list of the music that Mathers had created, but not released, and was for sale through various internet sites. The employees recognized this as an image taken directly from a hard drive in the Ferndale studio. The FBI was able to identify and locate multiple individuals that purchased the unreleased music. These individuals identified Joseph Strange as the person who was selling the music. Strange was an employee of Marshall Mathers from approximately 2007 until 2021.
“Protecting intellectual property from thieves is critical in safeguarding the exclusive rights of creators and protecting their original work from reproduction and distribution by individuals who seek to profit from the creative output of others,” said Acting U.S. Attorney Beck.
“This investigation underscores the FBI’s commitment to safeguarding artists' intellectual property from exploitation by individuals seeking to profit illegally," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "Thanks to the cooperation of Mathers Music Studio, FBI agents from the Oakland County Resident Agency were able to swiftly enforce federal laws and ensure Joseph Strange was held accountable for his actions."
If convicted on the charge of criminal infringement of a copyright, Strange faces a statutory maximum penalty of 5 years in prison and a fine of up to $250,000. A conviction on of the charge of interstate transportation of stolen goods, carries a statutory maximum penalty of up to 10 years in 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.
This case is being investigated by special agents of the FBI Oakland County Resident Agency and is being prosecuted by Assistant United States Attorneys Timothy Wyse and Alyse Wu.
Court Sentences Hino Motors Ltd., a Toyota Subsidiary, and Imposes over $1.6B in Penalties for Emissions Fraud SchemeRead the Press Release
Note: View plea agreement here. View criminal information here.
Today, U.S. District Court Judge Mark A. Goldsmith for the Eastern District of Michigan accepted Hino Motors, Ltd.’s guilty plea to a one-count criminal information charging it with having engaged in a multi-year criminal conspiracy to defraud both the U.S. government and American consumers and illicitly smuggle goods into the country. Judge Goldsmith also sentenced Hino, a Toyota subsidiary, to pay a criminal fine of $521.76 million, serve a five-year term of probation — during which it is prohibited from importing any diesel engines it has manufactured into the United States — and implement a comprehensive compliance and ethics program and reporting structure. The court also entered a $1.087 billion forfeiture money judgment against the company.
According to court records, between 2010 and 2019, Hino Motors, Ltd. engineers submitted and caused to be submitted false applications for engine certification approvals in violation of the federal Clean Air Act. Hino Motors, Ltd. engineers regularly altered emission test data, conducted tests improperly and fabricated data without conducting any underlying tests. The engineers also submitted fraudulent carbon dioxide emissions test data, which resulted in false fuel consumption values being calculated for its engines, and failed to disclose software functions that could adversely affect engines’ emission control systems. As a result of the fraud, Hino Motors, Ltd. imported and sold over 105,000 non-conforming engines between 2010 and 2022. These engines were primarily installed in heavy-duty trucks manufactured and sold by Hino nationwide.
“Hino unlawfully imported over 105,000 engines that did not comply with U.S. emissions standards and lied about what it was doing. Hino’s criminal conduct gave it an unfair business advantage over other law-abiding companies, including American companies, and generated over $1 billion in gross proceeds,” said Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “We are committed to upholding the rule of law by prosecuting fraud and enforcing our Clean Air Act emissions standards.”
“Our office is steadfast in its commitment to holding corporate actors accountable when they lie to government regulators, illicitly smuggle goods into our county, and then fraudulently sell those goods to American consumers,” said Acting U.S. Attorney Julie Beck for the Eastern District of Michigan.
“Hino falsely certified compliance with the Clean Air Act so that it could profit off Americans by sending illegal, polluting engines into the United States,” said Acting Assistant Administrator Jeffrey Hall for EPA’s Office of Enforcement and Compliance Assurance. “Today’s plea and sentencing demonstrates that companies who intentionally evade our nation’s environmental laws, including by fabricating data to feign compliance with those laws, deserve punishment and will be held criminally accountable.”
“By pleading guilty, Hino Motors, Ltd. has admitted to orchestrating a deliberate and years-long fraud scheme that put profit over principle,” said Acting Assistant Director James C. Barnacle Jr. of the FBI’s Criminal Investigative Division “It doesn’t matter how complex the scheme is, the FBI is committed to holding individuals and organizations responsible for their actions.”
Special agents of EPA’s Criminal Investigation Division and FBI’s Detroit Field Office investigated the criminal case.
Senior Trial Attorney Banumathi Rangarajan of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Andrew J. Yahkind for the Eastern District of Michigan handled the criminal prosecution. Assistant U.S. Attorney Gjon Juncaj handled the criminal forfeiture matters.
Ringleader of $6.2M Unemployment Insurance Fraud Sentenced to Nearly 8 Years PrisonRead the Press Release
DETROIT - Kenny Lee Howard, 32, of Southfield was sentenced to 94 months in prison today for his role in a scheme to defraud state unemployment insurance agencies during the Covid-19 pandemic, Acting United States Attorney Julie A. Beck announced.
Beck was joined in the announcement by Megan Howell, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor-Office of Inspector General.
Howard was sentenced by United States District Judge Linda V. Parker. Co-defendant David Davis, 27, of Detroit was previously sentenced and received 30 months in custody. Co-defendant Keila Howard has pleaded guilty and is awaiting sentencing. The case remains pending as to co-defendant Stevenvan Ware. All four defendants were charged with conspiracy to commit wire fraud; Kenny Howard was also charged with aggravated identity theft.
According to court records, between April 2020 and August 2021, Howard and his co-conspirators filed more than 700 unemployment insurance claims across five states, primarily Michigan and California. Once the claims were processed, funds were loaded onto pre-paid debit cards and mailed to addresses controlled by the defendants. Upon receiving these debit cards, the defendants visited ATMs to withdraw cash. Roughly sixty percent of the scheme’s fraudulent claims were successful, resulting in a loss of $6,336,575 to state unemployment insurance agencies. If all the fraudulent claims had been approved, the resulting loss would have exceeded $11,000,000.
Acting United States Attorney Beck stated, “The pandemic may be over, but the prosecutions of those who took advantage of government programs during the pandemic are not. This office continues—and will continue—to hold those responsible for these fraudulent schemes accountable for their actions, and today’s sentence is evidence of that important work."
“Kenny Howard III and his co-conspirators engaged in a scheme to defraud multiple state workforce agencies by filing for unemployment insurance in the names of identity theft victims who were not entitled to such benefits. Today’s sentencing affirms the Office of Inspector General’s commitment to work with our law enforcement partners to investigate and bring to justice those who exploit U.S. Department of Labor programs,” said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
The case is being prosecuted by Assistant United States Attorneys Ryan A. Particka and Timothy Wyse. The investigation was conducted by the Department of Labor, Office of Inspector General.
The Detroit Club Owners and Operators Settle False Claims Act Allegations for $357,669Read the Press Release
DETROIT – Acting United States Attorney Julie A. Beck announced today that the owners and operators of The Detroit Club agreed to pay $357,669 to the United States to resolve allegations that they violated the False Claims Act. The settling parties are Detroit Management Corporation, Lynn Kassotis, Citi Investment Group Corporation, and Emre Uralli (collectively, Defendants).
Congress created the Paycheck Protection Program (PPP) in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security Act, to provide emergency financial assistance to American businesses suffering from the economic effects of the COVID-19 pandemic. The PPP was administered by the United States Small Business Administration (SBA), but the loans were issued by private lenders, with the SBA guaranteeing the loans. Under the PPP, eligible small businesses could receive forgivable loans to cover expenses like payroll and lease payments. To obtain a PPP loan, an organization submitted an application, which required the applicant to certify, among other things, that it was eligible for the loan and that it would use the proceeds for eligible purposes.
During the COVID-19 pandemic, Defendants applied for two PPP loans related to the operation of The Detroit Club – a hotel, social club, and restaurant in Downtown Detroit. Under the program rules, PPP loans were forgivable if the proceeds were spent on eligible expenses during a period of up to 24 weeks after the loan was issued. Here, the first draw loan, which was applied for on April 4, 2020, was for $348,400. The second draw loan, which was applied for on February 16, 2021, was for $410,546. Defendants certified that all their PPP loan proceeds were spent on eligible expenses and, as a result, both loans were fully forgiven. The United States contends that Defendants did not spend all their PPP funds on expenses that were eligible for forgiveness. Specifically, the United States contends that Defendants obtained forgiveness of $167,040 for building lease expenses that were not eligible for forgiveness under the applicable rules.
“The False Claims Act is an important tool to deter and hold accountable those who defraud the government,” said Acting U.S. Attorney Julie A. Beck for the Eastern District of Michigan. “Entities who took advantage of the COVID-19 pandemic to commit fraud against the government will be vigorously investigated by our office.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act. Under these provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. The whistleblower will receive $71,533.96 from the settlement. The qui tam case is captioned United States ex rel. Decker v. Detroit Club Management Corporation, et al., case no. 23-cv-10209 (E.D. Mich.).
The matter was handled by Assistant United States Attorney John Postulka from the U.S. Attorney’s Office for the Eastern District of Michigan.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Seven Detroit Men Charged for Drug Distribution, Illegal Possession of Weapons, and Money LaunderingRead the Press Release
DETROIT – Seven men have been charged in a forty-three-count indictment alleging conspiracy to distribute controlled substances, weapons charges, and money laundering, Acting United States Attorney Julie A. Beck announced.
Beck was joined in the announcement by Chevoryea Gibson, Special Agent in Charge of the Federal Bureau of Investigations (FBI), Detroit Field Office, and Charles E. Miller, Special Agent in Charge of Internal Revenue Service Criminal Investigation (IRS-CI), Detroit Field Office.
Tary Holcomb (age 52), Maurice Hill (56), James Thomas (47), Curtis Weathers (52), Jason Ford, Conrad Taylor (48), and Shantonio Brooks (49), all of Detroit, were charged with conspiracy to distribute and possess with the intent to distribute a myriad of controlled substances, including cocaine, crack cocaine, heroin, and fentanyl. If convicted of the conspiracy charge, each of the men faces a mandatory prison sentence of at least 10 years. Holcomb and Thomas each face additional charges for possessing firearms in furtherance of drug trafficking crimes, while Holcomb also faces charges for being a felon in possession of a firearm, and for money laundering activities dating back to January 2023.
This case is assigned to Judge Edmunds of the United States District Court for the Eastern District of Michigan.
An indictment is only a formal charging document 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.
“This case is an example of our zealous commitment to identify and dismantle local drug trafficking organizations that wreak havoc in our community by distributing harmful substances, illegally amassing weapons, and laundering illicit proceeds. This activity puts far too many at risk, and it will not be tolerated in our district,” Acting U.S. Attorney Beck said.
“The indictment of seven men, accused of conspiring to distribute drugs, illegally possess firearms, and engage in money laundering, was successfully halted due to the tireless and meticulous investigative efforts by our dedicated team at the FBI Detroit Field Office, in close collaboration with our law enforcement partners at the IRS Criminal Investigation. This operation underscores our commitment to protecting the safety of Michigan’s communities,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI is unwavering in its mission to investigate and hold accountable those who threaten the well-being and security of our residents, ensuring a safer Michigan for all.”
“Federal laws that regulate the reporting of financial transactions are in place to detect and stop illegal activities, such as the drug trafficking and money laundering charges levied today,” said Charles Miller, Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation. “CI is committed to enforcing these laws and following the money, wherever it leads.”
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by agents from FBI’s Detroit Organized Crime Squad and IRS-CI along with the assistance of U.S. Customs and Border Protection and is being prosecuted by Assistant U.S. Attorney Erin Ramamurthy.
Director at Customs and Border Protection Charged with Scheme to Fraudulently Obtain Disaster Aid and Lying to Federal AgentsRead the Press Release
DETROIT – A federal criminal complaint was unsealed today charging the Director of United States Customs and Border Protection’s (CBP) Center for Excellence and Expertise over Automotive and Aerospace Engineering with engaging in a scheme to defraud the Federal Emergency Management Agency (FEMA), and lying to federal agents, Acting United States Attorney Julie A. Beck announced.
Beck was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation (FBI), and Daniel Altman, Executive Director of CBP’s Office of Professional Responsibility (OPR).
Serina Baker-Hill, 55, of Detroit, is a career employee of CBP. Following a series of floods in the Detroit area in August of 2023, Michigan’s request for a federal disaster declaration was approved, which allowed residents to apply for FEMA assistance. Baker-Hill applied for FEMA assistance for flood damage and a FEMA inspector determined there was damage to the basement in Baker-Hill’s home. During the inspection, Baker-Hill informed the inspector she was not able to live safely in the home while the repairs were being made. Consequently, FEMA approved benefits for Baker Hill to assist with home repairs and for two months of rental assistance. The approval letter from FEMA indicated that the rental assistance money was to be used solely to help Baker-Hill pay rent and essential utility costs while she was in temporary housing.
According to Baker-Hill’s bank records, none of the FEMA money was used for rental, hotel, or utility expenses. Video surveillance at the home showed that Baker-Hill and her husband continued to live in the home after receiving the rental assistance funds from FEMA. Additionally, records for the home do not show a significant drop in utilities consistent with the property being unoccupied during this time.
Baker-Hill was later interviewed by FBI and CBP-OPR agents and informed them that she has never committed illegal activity of any kind and had never defrauded the U.S. government.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment.
The investigation of this case was conducted by the FBI’s Detroit Border Corruption Task Force and CBP-OPR. Investigative assistance was also provided by the U.S. Department of Homeland Security – Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.
Foreign-Owned Company to Pay Nearly $2 Million to Resolve Improper Paycheck Protection Program LoanRead the Press Release
DETROIT – Acting United States Attorney Julie A. Beck announced today that Monofrax LLC, which is located in Falconer, New York, has agreed to pay $1,977,119 to resolve allegations that it improperly obtained a Paycheck Protection Program (PPP) loan from the U.S. Small Business Administration (SBA) for which it was not eligible.
Congress created the PPP in March 2020 to provide emergency financial assistance to American businesses suffering from the economic effects of the COVID-19 pandemic. Under the PPP, eligible small businesses could receive forgivable loans guaranteed by the SBA. Regulations provided various eligibility requirements for the PPP, including limitations on the number of employees and restrictions for foreign-owned companies.
In 2021, Monofrax obtained a second draw PPP loan through a Michigan bank. At the time of its loan application, Monofrax was ultimately owned and controlled by a private equity firm registered in Germany. Through common ownership and management, Monofrax was affiliated with multiple other companies worldwide. The United States contends that Monofrax was ineligible for the second draw loan because, together with its affiliates, it had more than 300 employees, in violation of the PPP rules in effect at the time Monofrax obtained the funds.
“PPP loans were intended to help small businesses in the United States, and not large companies owned by foreign entities,” said Acting U.S. Attorney Julie A. Beck for the Eastern District of Michigan. “This settlement demonstrates our office’s continued commitment to hold accountable those businesses and individuals who obtained COVID-19 relief funds that they didn’t deserve.”
This matter was handled by Assistant U.S. Attorney Anthony Gentner from the United States Attorney’s Office for the Eastern District of Michigan, with assistance from the SBA’s Office of General Counsel.
Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Flat Rock Man Guilty of Illegally Transporting and Receiving of Explosive Device that Caused a Home Explosion in River RougeRead the Press Release
DETROIT – A Flat Rock man pleaded guilty today to illegally transporting and receiving an explosive device, announced Acting United States Attorney Julie Beck.
Beck was joined in the announcement by James Deir, Special Agent in Charge of the ATF’s Detroit Field Division.
Steven Marchbanks, 58, also pleaded guilty to being a felon in possession of firearms.
According to court documents, the investigation arose out of a home explosion in River Rouge, Michigan in June 2024. On that date, Marchbanks purchased an illegal explosive device, thought to be an M-80, from an unknown individual off the street and transported it to the residence, where he left the device unattended with two children. One of the children set off the device. The explosion caused severe injuries to the children and structural damage to the home. Subsequently, law enforcement executed a search warrant at Marchbanks’ house and found two guns that belonged to him. Marchbanks had previously been convicted of multiple felony offenses and, as a result, cannot legally possess guns.
“The facts of this case show the danger that illegal explosive devices pose to our community. Tragically, this defendant’s actions caused devastating injuries to minor children,” stated Acting U.S. Attorney Beck.
“The allegations in this case represent the most horrific unintended consequences associated with poor choices. Steven Marchbanks is a repeat offender prohibited from lawfully possessing a firearm. Tragically, he chose to leave an unsecured M80 caliber explosive device with children in the home,” said Detroit Field Division Special Agent in Charge James Deir. “In a millisecond, a youngchild’s life was changed forever. In the end, Mr. Marchbanks will have several years behind bars to reflect on how his poor decision-making caused serious injuries to a child. Illegal fireworks are extremely dangerous and should never be left stored inside of your home.”
Sentencing is scheduled for July 15, 2025. Marchbanks faces a maximum penalty of 10 years in prison for transporting and receiving explosive materials without a license and 15 years in prison for possession of firearms as a felon.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case with assistance from River Rouge Police Department. Assistant U.S. Attorney Nhan Ho is prosecuting the case on behalf of the United States.
United States Attorney’s Office Charges 46 Illegal Aliens with Various Offenses including Immigration Crimes, Drug Trafficking, Weapons Offenses, and Child PornographyRead the Press Release
DETROIT – Since January of this year, the United States Attorney’s Office for the Eastern District of Michigan has charged 46 aliens who were unlawfully present in the United States with offenses including illegal reentry into the United States, drug trafficking, illegal possession of firearms, and child pornography offenses. These aliens’ home countries include Guatemala, Honduras, Mexico, and Venezuela. Several had prior convictions for human smuggling, drug trafficking, drunk driving, assault, and theft. In many cases, the aliens had been returned to their home country numerous times but have continued to violate immigration laws by re-entering the United States.
Recent cases include:
Hector Bejerano-Bejerano, a native of Mexico, was located at a gas station in Novi, Michigan, when he was creating a nuisance to customers. He was arrested and identified by United States Border Patrol and found to have two prior federal immigration convictions, including one in which Bejerano-Bejerano was caught smuggling three other illegal aliens into the United States from Mexico. During this encounter, Bejerano-Bejerano fled from a Border Patrol Agent and assaulted him. According to court filings in that case, Bejerano-Bejerano was encountered by Border Patrol 18 times during 2021 alone.
Dulce Rubio-Rivera, a native of Mexico, was found in Detroit, Michigan, when agents from the Federal Bureau of Investigation and Immigration and Customs Enforcement executed a federal search warrant at a house. Inside the house was Rubio-Rivera, along with drugs, a scale, ammunition and an AK-47 rifle. Rubio-Rivera pleaded guilty to conspiracy to distribute 6.25 kilograms of crystal methamphetamine.
Luis Fernando Santillan-Valderrabano, a native of Mexico, was located in the passenger seat of a vehicle in Detroit. Santillan-Valderrabano was originally admitted into the United States on a special visa that permitted him to stay in the United States for only 72 hours and within 25 miles of the United States-Mexico border. However, five months later Santillan-Valderrabano was arrested and pleaded guilty to theft charges in Georgia. A year after that, he was again arrested and convicted in Nebraska for resisting arrest and felony theft. Santillan-Valderrabano was removed back to Mexico in 2009, but illegally returned and was arrested in 2010 in Ithaca, Michigan, for a driving offense. Santillan-Valderrabano was removed again but tried to sneak back into the United States in 2011, was caught, and federally prosecuted in Texas for illegal entry. Santillan-Valderrabano was removed a third time in 2011, but again tried to illegally enter the United States, was caught, federally prosecuted in Texas for illegal reentry, and removed in 2012. In 2021, he was arrested in Wixom, Michigan, for driving 86 miles per hour in a 45 mile per hour zone. During this encounter with police, he used a fake name and date of birth and failed to appear for his court hearing after being charged with reckless driving, providing false identification, and not having a vehicle operation license.
Gustavo Placencia-Rosales, a native of Mexico who was unlawfully present in the United States, was arrested and charged in a criminal complaint with conspiracy to possess and possession with intent to distribute cocaine and carrying a firearm during and in relation to a drug trafficking offense. The complaint alleges that agents with the DEA have been investigating Placencia-Rosales for involvement in drug trafficking actitivies. Law enforcement initiated a traffic stop of a vehicle occupied by Placenia-Rosales, with three others, and recovered four brick-shaped packages that field tested positive as cocaine along with two firearms.
Luis Gerardo Rodriguez-Rey, a native of Columbia who was unlawfully present in the United States, was arrested and charged in a criminal complaint with being an alien in possession of a firearm and ammunition. According to the complaint, officers with the River Rouge Police Department were on routine patrol when they encountered Rodriguez-Rey traveling at a high rate of speed in a vehicle which did not have any exterior lights illuminated. A traffic stop was conducted and upon a search of his person and vehicle, officers recovered a Smith & Wesson pistol along with ammunition.
Luis Angel Alvarez-Alvarez, a native of Venuzuela, was arrested by agents of Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Border Patrol after agents stopped a vehicle that Alvarez-Alvarez was operating without a license plate. Alvarez-Alvarez had a prior final order of removal at the time of the arrest. During a search of his cellular device, officers discovered alleged child sexually abusive material. Alvarez was charged with production and possession of child pornography and remains in custody pending the disposition of his charges.
“The United States Attorney’s Office for the Eastern District of Michigan has a long-standing commitment to enforcing the immigrations laws of the United States, and that commitment is unwavering,” said Acting U.S. Attorney Julie Beck. “We will continue to work with our law enforcement partners to investigate and prosecute those individuals who are in our district unlawfully.”
“These cases represent a fraction of the criminal aliens we and our federal partners arrest every day across the Detroit Sector that’s making this country safer than it was just a few short months ago,” said Detroit Sector Chief Patrol Agent John R. Morris. “I could not be more proud of our agents for their enforcement efforts as well as their ability to form strong bonds with our local, state and federal partnerships such as we see exemplified here with U.S. Immigration and Customs Enforcement.”
“Keeping dangerous people and illicit drugs and weapons from infecting our communities is at the core of our comprehensive border security mandate,” said Director of Field Operations Marty C. Raybon. “The CBP Office of Field Operations is as committed as ever in protecting our homeland alongside our local, state, and federal law enforcement partners.”
“Our ICE Detroit officers will continue to secure our communities through the apprehension and arrest of criminal aliens and immigration violators,” said ICE ERO Detroit Field Office Director Robert Lynch. “Working with our law enforcement partners, we have been able to apprehend serious public safety threats from foreign sex offenders to drug traffickers and aliens in possession of illegal firearms.”
“As the investigative arm of the Department of Homeland Security, our agents are prioritizing investigations into bad actors who exploit our immigration system,” said ICE HSI Detroit acting Special Agent in Charge Jared Murphey. “From illegal aliens in possession of child sexually abusive material to dismantling human smuggling or trafficking rings, our ICE HSI team stands ready to safeguard the homeland alongside our partners.”
“The men and women of DEA work hard - day in and day out - to protect families from the dangers and violence associated with drug trafficking in our communities,” said DEA Acting Special Agent in Charge Andrew Lawton. “In that vein, we have prioritized our drug investigations on those involving violent, illegal criminals responsible for flooding our neighborhoods with deadly and dangerous drugs. We will continue to work with the Department of Homeland Security and our federal partners with immigration enforcement efforts.”
“ATF, along with our Department of Justice partners, stand side by side with the Department of Homeland Security and other federal law enforcement partners in their efforts to enforce immigration laws and protect public safety,” said ATF Detroit Special Agent in Charge James Deir. “We remain committed to supporting coordinated enforcement actions to uphold the rule of the law and ensure the security of our communities.”
“Members of the FBI’s Detroit Field Office, in collaboration with federal law enforcement partners—including Immigration and Customs Enforcement (ICE), U.S. Border Patrol (CBP), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), are actively investigating and apprehending individuals wanted for federal violations and those unlawfully present in the United States,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI’s Michigan Division. “The FBI in Michigan remains steadfast in its mission to uphold the Constitution and ensure the safety and security of the American people.”
A complaint/indictment is merely a formal charge and is not evidence of guilt. Every defendant is presumed innocent unless and until proven guilty. It is the burden of the government to prove guilt beyond a reasonable doubt.
These cases were investigated by agents of Immigration and Customs Enforcement’s Enforcement and Removal Operations and Homeland Security Investigations, U.S. Border Patrol, U.S. Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the Drug Enforcement Administration.
These cases are being prosecuted by Assistant United States Attorneys in the National Security Unit of the United States Attorney’s Office.
Prior Convicted Felon Who Led Distribution Network That Had Access to and Distributed Kilograms of Drugs During the Height of the COVD-19 Pandemic is Sentenced to PrisonRead the Press Release
DETROIT – Joseph Twilley, 65 years old, of Detroit, was sentenced to just over 13 years in prison. United States District Judge Laurie J. Michelson sentenced the Detroit-based leader for overseeing a drug trafficking network that distributed kilograms of cocaine, fentanyl, and heroin; laundering his drug money; and possessing firearms despite being a convicted felon, announced Acting United States Attorney Julie Beck.
Beck was joined in the announcement by Andrew Lawton, Acting Special Agent in Charge of Drug Enforcement Administration, Cheyvoryea Gibson, Special Agent in Charge of Federal Bureau of Investigation, and Charles E. Miller, Special Agent in Charge of the Internal Revenue Service Criminal Investigations, Detroit Field Division.
Twilley was able to obtain kilograms of cocaine, fentanyl, and heroin at the height of the COVID-19 pandemic when drug prices skyrocketed as supplies dwindled. DEA and FBI’s investigation culminated in the seizure of 15 kilograms of cocaine shipped from California in a hidden compartment in a vehicle. Agents then searched Twilley’s residence and recovered heroin, fentanyl, multiple firearms, and bulk currency. IRS CI uncovered hundreds of thousands of dollars that Twilley laundered through various bank accounts for businesses he set up to hide his drug proceeds from law enforcement.
“Our office works collaboratively with our federal law enforcement partners to hold drug traffickers accountable for distributing opioids and other illegal drugs into our communities while profiting handsomely and trying to hide and launder their drug proceeds. We have to stop not only the drug trafficking, but we have to remove the financial incentive to truly take down an organization like Twilley’s,” said Acting U.S. Attorney Beck.
“Illegal drug distribution operations like the one Mr. Twilley was overseeing, ravages the very foundation of our communities. Every time we take deadly drugs like fentanyl, heroin and cocaine off the streets, lives are saved. This investigation demonstrates the strength and continued commitment of our federal law enforcement partners here in Michigan,” said Andrew Lawton, Acting Special Agent in Charge of DEA.
"The sentencing of Joseph Twilley sends a clear and powerful message: those who orchestrate the distribution of illegal drugs, engage in money laundering, and illegally possess firearms will be held fully accountable under the law," said Cheyvoryea Gibson, Special Agent in Charge of the FBI's Detroit Field Office. "Through our collaboration with the DEA and IRS, we have successfully dismantled a significant drug trafficking network. The FBI remains committed to working alongside our law enforcement partners to combat violent and white-collar crime, ensuring our communities' continued safety and security in Michigan."
“This sentencing signals an important victory for the American public. The role of IRS Criminal Investigations in narcotics investigations is to follow the money so we can financially disrupt and dismantle major drug trafficking organizations,” said Charles Miller, IRS Criminal Investigations, Special Agent in Charge, Detroit Field Office. “We are proud to work hand-in-hand with our law enforcement partners to hold criminals accountable and make our communities safer.”
The investigation of the case was conducted by the Organized Crime Drug Enforcement (OCDETF) Southeast Regional Strike Force, an Initiative that provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. Assistant United States Attorneys Andrea Hutting and Rajesh Prasad prosecuted the case for the United States.
Farmington Hills Man Convicted in a Racially Motivated Assault of a Postal WorkerRead the Press Release
DETROIT – A Farmington Hills man was convicted by a federal jury yesterday on charges of assaulting a United States Postal Worker, Acting United States Attorney Julie A. Beck announced today.
Beck was joined in the announcement by Rodney Hopkins, Inspector in Charge of the U.S Postal Inspection Service's Detroit Division.
Russell Valleau, 62, was convicted following a three-day jury trial before United States District Judge Nancy G. Edmunds. The jury also unanimously found that Valleau intentionally selected the letter carrier as the object of his offense because of her actual or perceived race or color. The jury deliberated approximately two hours before returning their verdict. Valleau was convicted of assaulting a federal employee but acquitted of using a dangerous weapon in the assault.
Evidence presented at the trial established that Valleau, angered by receiving a black person’s mail in his mailbox, aggressively approached the passenger window of his letter carrier’s postal truck yelling racially charged insults at her. This letter carrier, a black woman herself, tried to diffuse the situation by directing him to leave the unwanted mail in his mailbox. Undeterred, Valleau continued his insults, now pointing the vitriol directly to the letter carrier. When she asked him to step away from her vehicle, he attempted to attack her through her open passenger window. Valleau was only thwarted when the letter carrier sprayed him in the face with her USPS-issued mace and drove away. Once apprehended, Valleau continued his offensive and profane language while in the custody of the officers – this included referring to his letter carrier as a “f**king smelly n**ger.” When officers admonished him for his language, he responded: “Oh, you like n**gers.”
Acting U.S. Attorney Beck stated, “A letter carrier was simply trying to do her job, and this defendant physically attacked her while using racist and offensive language. This type of behavior has no place in our community and will not be tolerated.”
“As the law enforcement arm of the U.S. Postal Service, the Postal Inspection Service prioritizes the safety and security of postal employees above all else,” said Detroit Division Inspector in Charge Rodney Hopkins. “Let this verdict be a warning to those who threaten, intimidate, or otherwise harm the dedicated men and women of USPS: We will arrest you, and we will seek to prosecute you to the fullest extent of the law.”
The Court scheduled a sentencing hearing for May 27, 2025 at 10:00 AM. Valleau faces up to twelve months incarceration.
This case was investigated by the United States Postal Inspection Service and the Farmington Hills Police Department and was prosecuted by Assistant U.S. Attorneys Frances Carlson and Darrin Crawford.
Detroit Man Sentenced to over Four Years in Federal Prison for Participating in Multi-State Pandemic Unemployment Insurance Fraud SchemeRead the Press Release
DETROIT - A man from Detroit, Michigan was sentenced today for his role in a multi-state, million-dollar unemployment insurance fraud scheme aimed at defrauding the U.S. government and the states of Michigan, Pennsylvania, and Maryland, of funds earmarked for unemployment assistance during the COVID-19 pandemic, announced Acting United States Attorney Julie A. Beck.
Joining in the announcement were Special Agent in Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Special Agent in Charge Charles Miller, Internal Revenue Service-Criminal Investigation, and Megan Howell, Acting Special Agent in Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Tracey Dotson, 49, was sentenced to 51 months in prison and ordered to pay more than $900,000 in restitution in the sentence handed down by United States District Judge Matthew F. Leitman.
According to court records, Dotson and a co-defendant conspired to, and did, defraud the federal government and the states of Michigan, Pennsylvania, and Maryland of roughly $1 million in funds intended to support individuals who had lost their jobs during the COVID-19 pandemic. The pair committed their crimes through the use of interstate wires and the unauthorized possession and use of social security numbers and other means of identification belonging to other individuals.
Dotson pleaded guilty to wire fraud and conspiracy to commit wire fraud in April 2024. Dotson and his co-defendant, using stolen personal identification, filed hundreds of false unemployment claims with state unemployment insurance agencies in Michigan, Pennsylvania, and Maryland in the names of other individuals without their knowledge or consent. The defendants then received hundreds of Bank of America prepaid debit cards in the names of those individuals loaded with roughly $1 million in Pandemic Unemployment Assistance funds at addresses in Michigan and Pennsylvania. Dotson, his co-defendant, and their accomplices then successfully unloaded more than $930,000 from the cards via cash withdrawals and purchases that included high-end jewelry, designer fashion accessories by Gucci and Louis Vuitton, drugs, at least one vehicle, and at least one firearm.
“Taxpayer unemployment assistance funds diverted to the pockets of criminals during the pandemic resulted in fewer resources that were available for those genuinely in need at that challenging time,” said Acting U.S. Attorney Julie Beck. “Our office is steadfast in its commitment to bringing those to justice who used a global health crisis as a means to illegally line their own pockets at the expense of taxpayers. “
"This sentence underscores the FBI's commitment to investigating complex financial crimes," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "We will not tolerate the greed and selfish conduct demonstrated by those who chose to defraud the unemployment insurance system, especially when we faced an unprecedented global pandemic. The FBI and our federal partners remain steadfast in holding criminals accountable and protecting government assistance programs. The pandemic may be in our rearview mirrors, but our investigations continue to move forward in the name of justice."
“Individuals who commit such blatant unemployment insurance fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law,” said Charles Miller, Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation. “Tracey Dotson and his co-conspirator took advantage of a program intended to help those in need get through a devastating global pandemic, exposed personal identity information of many, and caused immeasurable hardship to innocent victims. IRS Criminal Investigation remains committed to the pursuit of pandemic fraud and identity theft, together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”
"Tracey Dotson and his co-conspirator defrauded multiple state workforce agencies by using stolen identities to obtain unemployment insurance (UI) benefits. As a result, he stole vital taxpayer resources intended for unemployed American workers in dire need of UI benefits. Today’s sentencing affirms the Office of Inspector General’s commitment to work with our law enforcement partners to investigate and bring to justice those who exploit this critical benefit program,” said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
This case was prosecuted by Assistant United States Attorneys Carl D. Gilmer-Hill and Jessica A. Nathan. The investigation was conducted jointly by the Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation, and Department of Labor, Office of Inspector General.
Nurse Charged with Tampering with Vials of FentanylRead the Press Release
DETROIT - An indictment was unsealed charging registered nurse Travis Eskridge, 53, of Grosse Pointe Park, Michigan, with three counts of tampering with a consumer product, specifically the Schedule II controlled substance fentanyl. He also was charged with one count of theft of medical products by an employee and one count of obtaining a controlled substance by fraud. The announcement was made by Acting United States Attorney Julie Beck.
Beck was joined in the announcement by Special Agent in Charge Ronne Malham, FDA Office of Criminal Investigations Chicago Field Office.
According to the indictment, while working as a registered nurse in the emergency room at Ascension St. John Hospital, Eskridge tampered with vials containing fentanyl, a powerful narcotic pain reliever, which he knew were intended to be administered to patients in the hospital’s emergency room. The indictment charges that Eskridge removed fentanyl from the vials, replaced fentanyl with another liquid, and returned the tampered vials to the locked drug storage system. Eskridge did this with reckless disregard for the dangerous risk to patients that results from such tampering. The indictment also charges that he stole fentanyl vials as part of a pattern of thefts over a nine-month period and obtained fentanyl by fraud for his personal use. Nurse Eskridge was removed from his position at Ascension St. John Hospital in August of 2022 when the tampering and thefts were discovered.
Acting United States Attorney Beck stated, “Such crimes are a betrayal of the trust placed in licensed medical professionals. To protect the health and safety of our citizens, we take crimes like this seriously and pursue those in positions of trust who choose to harm others.”
Travis Eskridge made his initial appearance on the Indictment today before a Magistrate Judge of the United States District Court for the Eastern District of Michigan. He was released on a bond with conditions that included not seeking employment as a nurse.
The maximum penalties provided by statute for these offenses include up to 10 years of imprisonment for each of the three tampering counts, up to 5 years of imprisonment for the theft count, and up to 4 years of imprisonment for the acquiring by fraud count. Each count also carries a maximum fine of $250,000. The actual sentence imposed upon any conviction would be decided after consideration of the United States Sentencing Guidelines.
The case is investigated by special agents of the Food and Drug Administration.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Leader of Jackson Gang Admits to Conspiracy to Traffic Unique Form of FentanylRead the Press Release
DETROIT – A Houston, Texas resident and leader of the violent Jackson street gang the “Thorough Bread Family,” Tamarious “Poogi” Faulkner, pleaded guilty today to conspiracy to distribute over 400 grams of fentanyl, Acting United States Attorney Julie A. Beck announced today.
Beck was joined in the announcement by James Deir, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Detroit Field Division, Colonel James F. Grady, II, Michigan State Police, Director Elmer J. Hitt, Jackson Police and Fire Services, and Sheriff Gary Schuette, Jackson County Sheriff’s Department.
Tamarious Faulkner, 28, of Houston, Texas, was the leader of the Thorough Bread Family (TBF), a violent street gang that primarily operated in Jackson, Michigan. In his plea, Faulkner admitted that he was the leader of the conspiracy and that he and his co-conspirators distributed large amounts of fentanyl in Jackson. According to court documents, the fentanyl sold by the gang had a unique texture and coloring. Unlike most fentanyl, typically sold in powder form, TBF’s fentanyl was sold in a rock-like crystalline form, and was often colored yellow, purple, or blue, rather than the usual white. Faulkner and his fellow gang members also possessed firearms and machineguns in furtherance of the fentanyl trafficking conspiracy.
Six other co-conspirators have already been sentenced as follows:
- Demond Johns, age 27 of Jackson: 128 months’ prison
- Dominque Faulkner, age 33 of Jackson: 126 months’ prison
- Zaire Faulkner, age 26 of Jackson: 120 months’ prison
- Demarquan Smith, age 23 of Jackson: 120 months’ prison
- Tommy Owens, age 33 of Jackson: 87 months’ prison
- Mario Murguia, age 24 of Jackson: 60 months’ prison
“As is so often the case when drugs and gangs intersect, TBF wreaked havoc on a community by peddling poison and protecting their drug business with violence. The United States Attorney’s Office, in coordination with our federal, state, and local partners, will aggressively investigate and prosecute individuals, groups, and gangs like TBF who do so much to corrode public safety and the well-being of a community,” Acting U.S. Attorney Beck said.
“Today’s guilty plea is a huge win for the Jackson community. The Thorough Bred gang and Dominque Faulkner let their greed and desire for power guide their violent pathway straight into prison like a yellow brick road,” said James Deir ATF Special Agent in Charge of the Detroit Field Division. Like Dorothy and Toto, they are not in Kansas anymore; their cyclone of gun violence has blown them straight into federal prison for an extended period of time. To be clear: There is no place in our community for people who use illegal firearms to carry out fear, intimidate others, or facilitate drug dealing. Our community deserves better than Mr. Faulkner and his merry gang of thugs.”
Tamarious Faulkner is scheduled to be sentenced on April 29, 2025, before Judge Stephen J. Murphy, III. Faulkner faces a mandatory minimum sentence of 10 years in prison with a maximum sentence of life imprisonment.
This case was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives with the Michigan State Police, Jackson Police Department, and the Jackson County Sheriff's Office. The case is being prosecuted by Assistant U.S. Attorneys Andrew R. Picek, Matthew Roth, and Craig Welkener.
Detroit Man Convicted of Distributing Fentanyl Causing Multiple Overdoses; Sentenced to 23 years in Federal PrisonRead the Press Release
DETROIT – A 43-year-old Detroit man, Melvin Lamar Triplett, was sentenced to 23 years in prison today for drug conspiracy and delivering drugs causing death and serious bodily injury, Acting United States Attorney Julie A. Beck announced today.
Beck was joined in the announcement by Andrew Lawton, Acting Special Agent in Charge of the DEA Detroit Field Division.
Following a two-week trial in September 2024, a jury found Triplett guilty of distributing crack cocaine and fentanyl, resulting in the overdose deaths of two individuals and a third, non-fatal overdose. He also was convicted of a multi-month drug trafficking conspiracy, leading up to the distributions that resulted in the charged overdoses. Evidence at trial showed that Triplett was the leader of a drug trafficking operation that sold to an established customer base. In November 2022, Triplett distributed fentanyl-laced crack cocaine that caused multiple overdoses. DEA investigators traced the lethal drugs back to Triplett, a previously convicted drug dealer.
“Our office will vigorously pursue drug traffickers who push dangerous drugs like fentanyl and crack cocaine into our communities with indifference to the tragedy it inflicts. Thanks to the outstanding teamwork of the Drug Enforcement Administration, U.S. Attorney’s Office, and multiple local police departments, a dangerous drug trafficker has been removed from our streets,” stated Acting United States Attorney Julie Beck.
DEA Acting Special Agent in Charge Lawton said, “Two people lost their lives due to Mr. Triplett’s criminal activity and sentencing is a testament to the hard work DEA and our outstanding law enforcement partners put into this investigation. We will continue to aggressively pursue those who deal drugs and cause death in our community.”
This case was investigated by the Drug Enforcement Administration with assistance from the Dearborn Heights Police Department, Livonia Police Department, and Garden City Police Department. It was prosecuted by AUSAs Caitlin Casey and Eaton Brown.
United States Attorney’s Office Issues 2024 Annual ReportRead the Press Release
DETROIT - The United States Attorney’s Office made significant strides in 2024 in rebuilding community trust, reinvigorating our protection of civil rights, and restructuring our approach to violent crime, United States Attorney Dawn N. Ison announced today. The details of the office’s work in 2024 are set forth in a 62-page annual report highlighting prosecutions, community outreach, trials, convictions, systemic change, and community impact.
United States Attorney Dawn N. Ison stated, “Our office is immensely proud of the work we did in 2024, reducing crime, protecting civil rights, defending our borders, and protecting the federal treasury. This work could not have been accomplished without partnerships across the Eastern District of Michigan. Our dedicated team of lawyers and support staff worked with local, state, and federal law enforcement and community partners to improve the lives of the residents of the Eastern Michigan. This annual report represents the highlights of this work because it would be impossible to detail everything that this incredible team accomplished in 2024.”
The document is available here for review by the public. The report sets forth the work done in service of the richly diverse Eastern District of Michigan. The lawyers and support professionals in our Detroit, Flint, and Bay City offices, along with our partner agencies, had significant accomplishments this year. Among them:
• In fiscal year 2024, our office collected $45,395,510.25 in criminal and civil actions. Of this amount, $32,629,919.83 was collected in criminal actions and $12,765,590.42 was collected in civil actions. These funds are being returned to victims and taxpayers.
• Our efforts to target the most violent offenders who are harming public safety resulted in numerous federal convictions. We obtained a life sentence for the leader of the Seven Mile Bloods Gang who terrorized Detroit’s east side for many years. We also obtained Racketeer Influenced and Corrupt Organizations (“RICO”) convictions for three senior members of the Almighty Vice Lords Nation, a criminal enterprise that operates across the country, including in Detroit. One of the three defendants was sentenced to 70 years in prison while the other two each received 60-year sentences.
• We reached a landmark settlement agreement with the Wayne County Jail resolving allegations that the Wayne County Jail routinely failed to provide crucial services to inmates with disabilities, including access to appropriate prescription medications, mental health services and medical equipment, and failed to conduct medical and mental health assessments.
• We obtained a guilty plea from the former Chief Financial Officer of the Detroit Riverfront Conservancy who had embezzled more than 40 million dollars from the nonprofit. We also obtained a restitution agreement requiring him to pay no less than $44.3 million in restitution as a result of his conduct.
• We remained committed to rooting out public corruption in our community as 2024 saw the Mayor of Inkster plead guilty to bribery charges and the Mayor of Taylor sentenced to nearly 6 years in prison on charges of conspiracy to receive bribes and wire fraud.
• We charged five Chinese nationals, who were students at the University of Michigan, with conspiracy, false statements, and destruction of records in a federal investigation after they were caught photographing military equipment during a joint training exercise involving the Michigan National Guard and the Taiwanese military at Camp Grayling, a U.S. military installation.
• We obtained a 33-year sentence for an incident that took place on the Isabella Reservation in Indian Country where the defendant shot and killed his domestic partner and caused life-threatening injuries to a six-month-old child.
• We convicted seven individuals for violating the Freedom of Access to Clinic Entrances (FACE) Act by using physical obstruction to intimidate and interfere with employees and patients of a reproductive health clinic.
Although we are encouraged by the results of our efforts in 2024, we recognize that we still have more work to do. The work detailed in the 2024 Annual Report details our ongoing efforts to keep our community safe, protect civil rights, and ensure fairness and opportunity for everyone in our community. Each day, the 210 men and women of the U.S. Attorney’s Office will continue to work diligently to further these goals and to advance the interests of our nation.
Health Care Plan Agrees to Pay over $500,000 as Part of Self-Disclosure of Potential False Claims Act ViolationsRead the Press Release
DETROIT – United States Attorney Dawn N. Ison announced today that Commonwealth Care Alliance, Inc. (CCA) has agreed to pay $520,355.65 to resolve allegations that Reliance HMO, Inc., a company CCA acquired in 2022, violated the False Claims Act, 31 U.S.C. §§ 3729-3733, by providing cash payments to induce the referral of Medicare beneficiaries to enroll in Reliance’s Medicare Advantage Plan, in violation of the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b)(2). CCA voluntarily self-disclosed the conduct to the U.S. Attorney’s Office, and the settlement acknowledges that CCA took significant steps, entitling it to credit for cooperating with the government’s investigation.
Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in managed care insurance plans called Medicare Advantage Plans (MA Plans). The Centers for Medicare & Medicaid Services (CMS) pays MA Plans a monthly capitated payment for each beneficiary who enrolls in one of their plans. The Anti-Kickback Statute prohibits parties who participate in federal healthcare programs from knowingly and willfully paying or receiving any remuneration in return for referring an individual to, or arranging for the furnishing of, any item or services for which payment is made by the federal healthcare programs.
CCA is a not-for-profit corporation, with its principal place of business in Boston, Massachusetts, engaged in offering MA Plans. In April 2019, CMS authorized Reliance HMO, Inc. (Reliance) to operate a MA plan for Medicare beneficiaries in Michigan, with beneficiaries receiving coverage starting in January 2020. On March 31, 2022, CCA announced completion of its acquisition of a 70% stake in Reliance. After the acquisition, CCA identified concerns regarding certain marketing-related outreach and payments Reliance agents had made to personnel at physician practices. In particular, CCA disclosed two schemes.
First, from April 12, 2019, through December 22, 2020, Reliance provided cash payments to healthcare professionals and administrative staff in physician practices, in exchange for providing Reliance with the contact information for patients who had agreed, through executing so-called “permission to contact” cards, to be contacted by Reliance regarding its MA plan offerings.
Second, in November 2019, prior to Reliance’s MA plan becoming active, Reliance paid each of four physicians and physician practices $2,500, which Reliance characterized as advances on “coordination of care” services to be provided by the physicians to beneficiaries when the MA plan became active in 2020.
The United States alleges these payments were intended to induce the referral, recommendation, or arrangement of enrollment of Medicare beneficiaries in Reliance’s MA plan. Such payments, the United States alleges, were impermissible kickbacks in violation of the False Claims Act. The settlement announced today resolves these claims.
CCA voluntarily self-disclosed this conduct to the United States and received credit for its cooperation. In addition, CCA took remedial measures, including terminating the employees directly involved with the decision to offer the payments described above, and providing the United States with a detailed written statement describing its investigation, along with other supplemental information to assist the United States in its investigation.
“Our office encourages companies and individuals to make timely self-disclosures and take remedial measures to mitigate the harm from fraud that they discover,” said U.S. Attorney Ison. “While we remain steadfast in using the False Claims Act to address the use of prohibited payments to induce federal healthcare business, our office is prepared to give credit, where justified, to those that save the government time and resources by disclosing fraud.”
Ison was joined in the announcement by Special Agent in Charge Mario Pinto, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).
"Paying kickbacks in exchange for patient referrals can drive up costs and lead to unnecessary medical services," said Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). "This settlement highlights the value of HHS-OIG’s Self-Disclosure Program, which allows providers to report potential fraud directly to HHS-OIG and mitigate the costs and disruptions often associated with a government-directed investigation."
The United States Attorney’s Office encourages anyone with information involving waste, fraud, and abuse in federal healthcare or other programs, to please report the illegal conduct, by contacting:
HHS-OIG Hotline: 1-800-HHS-TIPS (1-800-447-8477) or https://tips.oig.hhs.gov
To file a voluntary self-disclosure, please access the link below:
https://oig.hhs.gov/compliance/self-disclosure-info/self-disclosure-protocol/
The civil investigation was handled by Assistant U.S. Attorney Jonny Zajac of the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from HHS-OIG.
The claims resolved by the settlement are allegations only; there has been no determination or admission of liability.
Hino Motors, a Toyota Subsidiary, Agrees to Plead Guilty and Pay over $1.6B to Resolve Emissions Fraud SchemeRead the Press Release
The U.S. Justice Department, Environmental Protection Agency (EPA), FBI, Customs and Border Protection (CBP), Department of Transportation’s Office of Inspector General (DOT-OIG), National Highway Traffic Safety Administration (NHTSA), and State of California today reached criminal and multiple civil resolutions, valued at over $1.6 billion, with Hino Motors, Ltd. (Hino Motors), Hino Motors Manufacturing U.S.A., Inc. and Hino Motors Sales U.S.A., Inc. (collectively, Hino) for violations related to the submission of false and fraudulent engine emission testing and fuel consumption data to regulators and the illicit smuggling of engines into the United States. These resolutions are subject to approval by the U.S. District Court for the Eastern District of Michigan.
This unlawful conduct allowed Hino, a subsidiary of Toyota Motor Corporation, to improperly secure approvals to import and sell, and cause to be imported and sold, more than 110,000 diesel engines in the United States from 2010 to 2022. These engines were primarily installed in heavy-duty trucks manufactured and sold by Hino nationwide.
“Today, Hino Motors, a subsidiary of Toyota, agreed to plead guilty to engaging in a criminal conspiracy to mislead regulators and consumers that violated federal environmental laws and endangered public health,” said Attorney General Merrick B. Garland. “No company is above the law. I am grateful to our federal and state partners for their work to hold Hino accountable for its criminal misconduct.”
“Hino knew the requirements that engines must meet to be certified to operate in the United States, yet it falsified data for years to skirt regulations,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “Hino’s actions led to vast amounts of excess air pollution and were an egregious violation of our nation’s environmental, consumer protection and import laws. Today’s plea agreement and civil settlements, on behalf of myriad federal entities, mark the Justice Department’s commitment to protecting our environment and holding companies accountable for corporate wrongdoing.”
“Corporate crimes such as these endanger the health and well-being of innocent Americans, as well as the environment in which we all live,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “My office is committed to aggressively seeking justice when corporate actors violate air quality standards and place our community at risk in order to increase their sales.”
“Hino Motors engaged in a years-long scheme to alter and fabricate emissions data in order to get a leg up over its competitors and boost their bottom-line,” said FBI Director Christopher Wray. “To further this fraudulent scheme, Hino violated laws and regulations intended to protect American’s health and the environment. The FBI is committed to working with our partners across the U.S. government to ensure that corporate bad actors who purposefully violate the law are held accountable for their criminal actions.”
“Providing false information to federal agencies subverts regulations designed to protect the public and reduce costs for consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work closely with its partners to hold accountable companies that prioritize profit over complying with the law.”
“EPA and the American consumer rely on true and accurate data from engine manufacturers to protect our nation’s air quality. Hino’s actions directly undermined EPA’s program to protect the public from air pollution,” said Acting EPA Administrator Jane Nishida. “Today’s criminal charges and civil settlement demonstrates EPA’s commitment to hold companies like Hino Motors, Ltd. accountable for knowingly violating environmental laws and regulations that protect public health and the environment.”
“CBP works with partner government agencies to prioritize the enforcement of environmental laws and is driving meaningful change in trade practices,” said Executive Assistant Commissioner AnnMarie Highsmith of CBP’s Office of Trade. “This settlement is an example of CBP’s role in enforcing laws that facilitate legitimate trade and protect the American economy, creating a level playing field for American businesses and ensuring that consumers have access to fair, safe products.”
“Misleading federal regulators is a brazen crime that is reflected in the size and scope of today’s settlement agreement which holds Hino Motors accountable for their wrongdoing,” said Inspector General Eric J. Soskin of DOT. “The judicial actions taken today demonstrate the ongoing commitment of DOT-OIG to work with our law enforcement and prosecutorial partners to investigate improper and illegal conduct of automotive corporations that submit false fuel consumption values.”
“Hino knowingly took unlawful advantage of California’s incentives designed to accelerate the adoption of clean transportation technologies, which safeguard the health and safety of Californians from pollution,” said California Attorney General Rob Bonta. “At the California Department of Justice, we will continue to hold manufacturers like Hino accountable for breaking California’s laws. I want to thank our federal and state partners for their collective work on reaching this critical settlement.”
Global Resolution Details
As part of the global resolutions, Hino Motors, Ltd. has agreed to plead guilty to engaging in a multi-year criminal conspiracy. The plea agreement, which is subject to approval by the court, requires it to pay a criminal fine of $521.76 million, serve a five-year term of probation — during which it will be prohibited from importing any diesel engines it has manufactured into the United States — and implement a comprehensive compliance and ethics program and reporting structure. Hino Motors, Ltd. has also agreed to entry of a forfeiture money judgment against it in the amount of $1.087 billion. Pursuant to the plea agreement, Hino’s future payments towards its civil settlement obligations, as well future payments as part of a civil class action settlement brought by private plaintiffs, will be credited towards its criminal forfeiture money judgment obligation.
In separate civil resolutions of environmental, customs and fuel economy claims by the federal government and the State of California, Hino will pay a civil penalty of $525 million based on its demonstrated financial condition. The global resolution includes the second largest criminal fine and fourth largest civil penalty in the history of EPA’s mobile source program.
Other provisions of the civil agreement include:
- A mitigation program, valued at $155 million, to offset excess air emissions from the violations by replacing marine and locomotive engines, and installing locomotive idle reduction technology systems, throughout 49 states (excluding California), including the reduction of over 41,000 tons of nitrogen oxides (NOx) emissions;
- A recall program, valued at $144.2 million, to modify violative engines in 2017-2019 heavy-duty trucks so they comply with U.S. and California emissions laws;
- $123.6 million to fund mitigation projects and enforcement costs in California; and
- $30.3 million to resolve California False Claims Act claims.
EPA discovered Hino’s noncompliance as a result of conducting confirmatory testing of Hino’s engines. On Jan. 10, EPA voided engine approvals, called “certificates of conformity,” for Hino’s 2010-2019 diesel engines for heavy-duty trucks and nonroad equipment. This is the largest voiding action ever taken by EPA, reflecting the egregiousness of the conduct and the flagrant disregard for EPA’s certification program. That program is designed to provide a level playing field for vehicle and engine manufacturers seeking to do business in the United States.
Conduct Admitted to by Hino Motors, Ltd.
As part of its plea agreement, Hino Motors, Ltd. admits that between 2010 and 2019, it submitted and caused to be submitted false applications for engine certification approvals. Hino Motors, Ltd. engineers regularly altered emission test data, conducted tests improperly and fabricated data without conducting any underlying tests. Hino Motors, Ltd. further admits that it submitted fraudulent carbon dioxide emissions test data, which resulted in false fuel consumption values being calculated for its engines. Hino Motors, Ltd. engineers also failed to disclose software functions that could adversely affect engines’ emission control systems. As a result of the fraud, Hino Motors, Ltd. imported and sold over 105,000 non-conforming engines between 2010 and 2022.
Emissions Reductions
EPA estimates that Hino’s engines emitted levels of NOx, particulate matter, carbon dioxide (CO2), and nitrous oxide (N2O) above the regulatory limits. Hino’s recall is designed to bring model year 2017-2019 truck engines into compliance with emissions standards. Its mitigation projects around the country will fully offset the lifetime excess emissions of all violative engines. These mitigation projects include:
- Replacing more than 35 older, dirtier marine and locomotive engines with engines certified to the strictest EPA diesel emission standards, and
- Installing idle reduction technology in over 135 locomotives.
The mitigation projects will reduce emissions by at least 41,941 tons of NOx, 376 tons of particulate matter, 6,199 tons of CO2, and 135 tons of N2O. The NOx reductions alone are estimated to be equivalent to removing over 110,000 heavy-duty trucks from operation.
NOx and particulate matter are associated with serious health effects, including asthma attacks, respiratory illnesses and cardiovascular issues, which can lead to lung damage and premature death. CO2 and N2O are climate-impacting greenhouse gases, which can also endanger public health and welfare.
The Clean Air Act requires vehicle and engine manufacturers to submit testing data showing that their products meet air pollution emission standards in order to obtain certifications from EPA and California. As part of the certification process, manufacturers must conduct emission testing and submit test data demonstrating compliance with standards. Manufacturers must also disclose software functions that could affect engines’ emission controls. Further, motor vehicle engines must comply with emissions requirements to be lawfully imported into the United States. NHTSA regulations require that manufacturers like Hino provide fuel consumption values for each model year because these standards are designed to conserve fuel and increase efficiency.
The charges in the criminal information filed against Hino Motors, Ltd. are merely accusations. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. A plea hearing date has not yet been set. Future case updates will be listed at www.justice.gov/enrd/environmental-crime-victim-assistance/current-case-information-crime-victims. Individuals can contact the Justice Department regarding victim rights and services or the status of this case at (833) 676-181 or at [email protected]; please mention or put in the subject line: 198-01902. The Justice Department uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. If you believe you are a victim of the conduct described in the plea agreement and criminal information, please visit www.justice.gov/enrd/case/hino-motors-ltd.
The proposed global civil settlement consent decree is subject to a 30-day comment period and final court approval. More information on the consent decree and the process for submitting comments is available at www.justice.gov/enrd/consent-decrees. This settlement agreement is part of a coordinated group of settlements resolved by the United States against Hino by EPA, NHTSA, CBP, and California with resolved False Claims Act and other state-only claims on behalf of the California Air Resources Board (CARB) and the California Attorney General.
Special agents of EPA’s Criminal Investigation Division (EPA-CID)’s Ann Arbor Field Office and FBI’s Detroit Field Office are investigating the criminal case.
Senior Trial Attorney Banumathi Rangarajan of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Andrew J. Yahkind for the Eastern District of Michigan are prosecuting the criminal case, with support from EPA’s Regional Criminal Enforcement Counsel. The Civil Division’s Consumer Protection Branch, Justice Department’s Office of International Affairs, CBP’s Office of Chief Counsel and Office of the Assistant Chief Counsel-Detroit, DOT-OIG and NHTSA provided assistance.
Senior Counsel David Laufman Weigert and Senior Attorney Alexandra Sherertz with ENRD’s Environmental Enforcement Section, Assistant U.S. Attorney Anthony Gentner of the U.S. Attorney’s Office for the Eastern District of Michigan and Senior Legal Advisor Meetu Kaul and Attorney-Advisors Kayla Steinberg and Ian Altendorfer with EPA’s Office of Enforcement and Compliance Assurance (OECA), Air Enforcement Division are handling the civil settlements. Engineers with EPA’s Office of Transportation and Air Quality and OECA provided critical assistance.
CARB played an active and supportive role throughout the development and pursuit of the civil case and settlement negotiations by EPA and ENRD. Trial Attorneys Marilee Miller and Paulina Stamatelos with the Civil Division’s Consumer Protection Branch are handling NHTSA-related claims. Assistant Chief Counsel Karen Hiyama and Attorney Jason W. Williams with CBP’s Office of the Assistant Chief Counsel-Detroit are handling CBP-related claims.
Hino Motors Ltd Criminal Information.pdfHino Motors Ltd Plea Agreement.pdfHino Motors, a Toyota Subsidiary, Agrees to Plead Guilty and Pay over $1.6B to Resolve Emissions Fraud SchemeRead the Press Release
The U.S. Justice Department, Environmental Protection Agency (EPA), FBI, Customs and Border Protection (CBP), Department of Transportation’s Office of Inspector General (DOT-OIG), National Highway Traffic Safety Administration (NHTSA), and State of California today reached criminal and multiple civil resolutions, valued at over $1.6 billion, with Hino Motors, Ltd. (Hino Motors), Hino Motors Manufacturing U.S.A., Inc. and Hino Motors Sales U.S.A., Inc. (collectively, Hino) for violations related to the submission of false and fraudulent engine emission testing and fuel consumption data to regulators and the illicit smuggling of engines into the United States. These resolutions are subject to approval by the U.S. District Court for the Eastern District of Michigan.
This unlawful conduct allowed Hino, a subsidiary of Toyota Motor Corporation, to improperly secure approvals to import and sell, and cause to be imported and sold, more than 110,000 diesel engines in the United States from 2010 to 2022. These engines were primarily installed in heavy-duty trucks manufactured and sold by Hino nationwide.
“Today, Hino Motors, a subsidiary of Toyota, agreed to plead guilty to engaging in a criminal conspiracy to mislead regulators and consumers that violated federal environmental laws and endangered public health,” said Attorney General Merrick B. Garland. “No company is above the law. I am grateful to our federal and state partners for their work to hold Hino accountable for its criminal misconduct.”
“Hino knew the requirements that engines must meet to be certified to operate in the United States, yet it falsified data for years to skirt regulations,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “Hino’s actions led to vast amounts of excess air pollution and were an egregious violation of our nation’s environmental, consumer protection and import laws. Today’s plea agreement and civil settlements, on behalf of myriad federal entities, mark the Justice Department’s commitment to protecting our environment and holding companies accountable for corporate wrongdoing.”
“Corporate crimes such as these endanger the health and well-being of innocent Americans, as well as the environment in which we all live,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “My office is committed to aggressively seeking justice when corporate actors violate air quality standards and place our community at risk in order to increase their sales.”
“Hino Motors engaged in a years-long scheme to alter and fabricate emissions data in order to get a leg up over its competitors and boost their bottom-line,” said FBI Director Christopher Wray. “To further this fraudulent scheme, Hino violated laws and regulations intended to protect American’s health and the environment. The FBI is committed to working with our partners across the U.S. government to ensure that corporate bad actors who purposefully violate the law are held accountable for their criminal actions.”
“Providing false information to federal agencies subverts regulations designed to protect the public and reduce costs for consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work closely with its partners to hold accountable companies that prioritize profit over complying with the law.”
“EPA and the American consumer rely on true and accurate data from engine manufacturers to protect our nation’s air quality. Hino’s actions directly undermined EPA’s program to protect the public from air pollution,” said Acting EPA Administrator Jane Nishida. “Today’s criminal charges and civil settlement demonstrates EPA’s commitment to hold companies like Hino Motors, Ltd. accountable for knowingly violating environmental laws and regulations that protect public health and the environment.”
“CBP works with partner government agencies to prioritize the enforcement of environmental laws and is driving meaningful change in trade practices,” said Executive Assistant Commissioner AnnMarie Highsmith of CBP’s Office of Trade. “This settlement is an example of CBP’s role in enforcing laws that facilitate legitimate trade and protect the American economy, creating a level playing field for American businesses and ensuring that consumers have access to fair, safe products.”
“Misleading federal regulators is a brazen crime that is reflected in the size and scope of today’s settlement agreement which holds Hino Motors accountable for their wrongdoing,” said Inspector General Eric J. Soskin of DOT. “The judicial actions taken today demonstrate the ongoing commitment of DOT-OIG to work with our law enforcement and prosecutorial partners to investigate improper and illegal conduct of automotive corporations that submit false fuel consumption values.”
“Hino knowingly took unlawful advantage of California’s incentives designed to accelerate the adoption of clean transportation technologies, which safeguard the health and safety of Californians from pollution,” said California Attorney General Rob Bonta. “At the California Department of Justice, we will continue to hold manufacturers like Hino accountable for breaking California’s laws. I want to thank our federal and state partners for their collective work on reaching this critical settlement.”
Global Resolution Details
As part of the global resolutions, Hino Motors, Ltd. has agreed to plead guilty to engaging in a multi-year criminal conspiracy. The plea agreement, which is subject to approval by the court, requires it to pay a criminal fine of $521.76 million, serve a five-year term of probation — during which it will be prohibited from importing any diesel engines it has manufactured into the United States — and implement a comprehensive compliance and ethics program and reporting structure. Hino Motors, Ltd. has also agreed to entry of a forfeiture money judgment against it in the amount of $1.087 billion. Pursuant to the plea agreement, Hino’s future payments towards its civil settlement obligations, as well future payments as part of a civil class action settlement brought by private plaintiffs, will be credited towards its criminal forfeiture money judgment obligation.
In separate civil resolutions of environmental, customs and fuel economy claims by the federal government and the State of California, Hino will pay a civil penalty of $525 million based on its demonstrated financial condition. The global resolution includes the second largest criminal fine and fourth largest civil penalty in the history of EPA’s mobile source program.
Other provisions of the civil agreement include:
- A mitigation program, valued at $155 million, to offset excess air emissions from the violations by replacing marine and locomotive engines, and installing locomotive idle reduction technology systems, throughout 49 states (excluding California), including the reduction of over 41,000 tons of nitrogen oxides (NOx) emissions;
- A recall program, valued at $144.2 million, to modify violative engines in 2017-2019 heavy-duty trucks so they comply with U.S. and California emissions laws;
- $123.6 million to fund mitigation projects and enforcement costs in California; and
- $30.3 million to resolve California False Claims Act claims.
EPA discovered Hino’s noncompliance as a result of conducting confirmatory testing of Hino’s engines. On Jan. 10, EPA voided engine approvals, called “certificates of conformity,” for Hino’s 2010-2019 diesel engines for heavy-duty trucks and nonroad equipment. This is the largest voiding action ever taken by EPA, reflecting the egregiousness of the conduct and the flagrant disregard for EPA’s certification program. That program is designed to provide a level playing field for vehicle and engine manufacturers seeking to do business in the United States.
Conduct Admitted to by Hino Motors, Ltd.
As part of its plea agreement, Hino Motors, Ltd. admits that between 2010 and 2019, it submitted and caused to be submitted false applications for engine certification approvals. Hino Motors, Ltd. engineers regularly altered emission test data, conducted tests improperly and fabricated data without conducting any underlying tests. Hino Motors, Ltd. further admits that it submitted fraudulent carbon dioxide emissions test data, which resulted in false fuel consumption values being calculated for its engines. Hino Motors, Ltd. engineers also failed to disclose software functions that could adversely affect engines’ emission control systems. As a result of the fraud, Hino Motors, Ltd. imported and sold over 105,000 non-conforming engines between 2010 and 2022.
Emissions Reductions
EPA estimates that Hino’s engines emitted levels of NOx, particulate matter, carbon dioxide (CO2), and nitrous oxide (N2O) above the regulatory limits. Hino’s recall is designed to bring model year 2017-2019 truck engines into compliance with emissions standards. Its mitigation projects around the country will fully offset the lifetime excess emissions of all violative engines. These mitigation projects include:
- Replacing more than 35 older, dirtier marine and locomotive engines with engines certified to the strictest EPA diesel emission standards, and
- Installing idle reduction technology in over 135 locomotives.
The mitigation projects will reduce emissions by at least 41,941 tons of NOx, 376 tons of particulate matter, 6,199 tons of CO2, and 135 tons of N2O. The NOx reductions alone are estimated to be equivalent to removing over 110,000 heavy-duty trucks from operation.
NOx and particulate matter are associated with serious health effects, including asthma attacks, respiratory illnesses and cardiovascular issues, which can lead to lung damage and premature death. CO2 and N2O are climate-impacting greenhouse gases, which can also endanger public health and welfare.
The Clean Air Act requires vehicle and engine manufacturers to submit testing data showing that their products meet air pollution emission standards in order to obtain certifications from EPA and California. As part of the certification process, manufacturers must conduct emission testing and submit test data demonstrating compliance with standards. Manufacturers must also disclose software functions that could affect engines’ emission controls. Further, motor vehicle engines must comply with emissions requirements to be lawfully imported into the United States. NHTSA regulations require that manufacturers like Hino provide fuel consumption values for each model year because these standards are designed to conserve fuel and increase efficiency.
The charges in the criminal information filed against Hino Motors, Ltd. are merely accusations. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. A plea hearing date has not yet been set. Future case updates will be listed at www.justice.gov/enrd/environmental-crime-victim-assistance/current-case-information-crime-victims. Individuals can contact the Justice Department regarding victim rights and services or the status of this case at (833) 676-181 or at [email protected]; please mention or put in the subject line: 198-01902. The Justice Department uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. If you believe you are a victim of the conduct described in the plea agreement and criminal information, please visit www.justice.gov/enrd/case/hino-motors-ltd.
The proposed global civil settlement consent decree is subject to a 30-day comment period and final court approval. More information on the consent decree and the process for submitting comments is available at www.justice.gov/enrd/consent-decrees. This settlement agreement is part of a coordinated group of settlements resolved by the United States against Hino by EPA, NHTSA, CBP, and California with resolved False Claims Act and other state-only claims on behalf of the California Air Resources Board (CARB) and the California Attorney General.
Special agents of EPA’s Criminal Investigation Division (EPA-CID)’s Ann Arbor Field Office and FBI’s Detroit Field Office are investigating the criminal case.
Senior Trial Attorney Banumathi Rangarajan of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Andrew J. Yahkind for the Eastern District of Michigan are prosecuting the criminal case, with support from EPA’s Regional Criminal Enforcement Counsel. The Civil Division’s Consumer Protection Branch, Justice Department’s Office of International Affairs, CBP’s Office of Chief Counsel and Office of the Assistant Chief Counsel-Detroit, DOT-OIG and NHTSA provided assistance.
Senior Counsel David Laufman Weigert and Senior Attorney Alexandra Sherertz with ENRD’s Environmental Enforcement Section, Assistant U.S. Attorney Anthony Gentner of the U.S. Attorney’s Office for the Eastern District of Michigan and Senior Legal Advisor Meetu Kaul and Attorney-Advisors Kayla Steinberg and Ian Altendorfer with EPA’s Office of Enforcement and Compliance Assurance (OECA), Air Enforcement Division are handling the civil settlements. Engineers with EPA’s Office of Transportation and Air Quality and OECA provided critical assistance.
CARB played an active and supportive role throughout the development and pursuit of the civil case and settlement negotiations by EPA and ENRD. Trial Attorneys Marilee Miller and Paulina Stamatelos with the Civil Division’s Consumer Protection Branch are handling NHTSA-related claims. Assistant Chief Counsel Karen Hiyama and Attorney Jason W. Williams with CBP’s Office of the Assistant Chief Counsel-Detroit are handling CBP-related claims.
Hino Motors Ltd Criminal Information.pdf Hino Motors Ltd Plea Agreement.pdfBureau of Prisons Inmate Sentenced to over One Year in Prison for Offering Bribes to Corrections OfficerRead the Press Release
DETROIT – A federal inmate with the Bureau of Prisons (BOP), was sentenced to 18 months in prison today for offering bribes to a corrections officer, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by William J. Hannah, Special Agent in Charge of the Department of Justice, Office of Inspector General.
Robert Bibbs, 28, of Chicago, Illinois, pleaded guilty in October 2024 to one count of offering bribes to a public official before United States District Judge Jonathan J.C. Grey. Federal law classifies corrections officers as public officials.
According to court documents, between April 2023 and November 2023, Bibbs became acquainted with a corrections officer (identified in the plea agreement as CO-1) while he was an inmate at the Milan, Michigan Federal Correctional Institution (FCI Milan). During this time, Bibbs asked CO-1 to purchase pouches of loose tobacco and smuggle them into the prison for him. Bibbs requested these items so he could sell the tobacco in prison at a significant profit. In September 2023, CO-1 also purchased a gold necklace which she secretly brought into the prison and gave to Bibbs. Both the tobacco and the necklace are considered contraband within FCI Milan. Contraband is defined as prohibited materials which can reasonably be expected to cause physical injury or adversely affect the security, safety, or good order of the institution. Bibbs offered to pay CO-1 for smuggling contraband into the prison for him.
United States Attorney Ison stated, “Our justice system cannot function properly if our prisons are not safe and secure. Inmates who engage in this type of prohibited conduct endanger the safety of everyone inside the prison. We will address crime wherever it happens.”
“Contraband items such as jewelry and tobacco are used as a currency within federal prisons, which undermines the safety and security of institutions,” said William J. Hannah, Acting Special Agent in Charge of the U.S. Department of Justice Office of Inspector General Midwestern Region. “Today’s sentencing shows that inmates who seek to bribe Correctional Officers to introduce contraband into federal prisons will be held accountable.”
The case was prosecuted by Assistant United States Attorney Eaton P. Brown. The investigation was conducted by the Department of Justice-Office of Inspector General
United States Attorney Dawn N. Ison Announces ResignationRead the Press Release
DETROIT – United States Attorney Dawn N. Ison announced her resignation today, effective January 19, 2025.
“Capping my years-long public service to the Eastern District of Michigan as the United States Attorney will forever serve as the crowning point of my career,” said U.S. Attorney Dawn N. Ison. “I want to express my sincere appreciation to President Joe Biden and Attorney General Merrick Garland for the opportunity to lead the U.S. Attorney’s Office in this District. I am also extremely grateful for the confidence U.S. Senators Debbie Stabenow and Gary Peters had in me to carry out this charge. With the extraordinary talent at the U.S. Attorney’s Office and our federal, state, and local law enforcement partners, I am extremely proud of all that we have accomplished to reduce violent crime, empower communities through transparency and engagement, and protect the civil rights of all within our borders. We have collaborated with purpose, used innovative and evidence-based strategies to operate under the principles of focus, balance, and fairness in our work, and effectively included community stakeholders as partners in our efforts. It is through this shared responsibility for safety that we have accomplished so much. And so it is my hope as I prepare to leave this office, that this work—this partnership—will continue.”
Ms. Ison was nominated by President Joseph R. Biden on November 12, 2021, and confirmed by the Senate on December 14, 2021. She was sworn in as the chief federal law enforcement officer for the Eastern District of Michigan on December 21, 2021.
Under Ms. Ison’s leadership, the U.S. Attorney’s Office for the Eastern District of Michigan worked to rebuild community trust in law enforcement, restructure the office’s approach to violent crime, and reinvigorate the office’s civil rights practice.
Rebuilding Community Trust
Under Ms. Ison’s leadership the office engaged in outreach to communities across the District. This community engagement included communities at risk of discrimination or hate crimes, communities experiencing disproportionate rates of violence, and returning citizens. That engagement also included transparency about the office’s work and enforcement efforts, educational programming, prevention efforts, and listening sessions to understand the specific concerns and needs of the various diverse communities within the District.
“I sincerely hope that any legacy I leave includes empowering communities to know that they deserve to live in peaceful neighborhoods, free of violence, hate, and other threats and that they are partners in this effort to achieve public safety for all,” stated U.S. Attorney Ison.
Restructuring Approach to Violent Crime
Ms. Ison prioritized lowering the rate of violent crime in the district which resulted in a restructuring of the office’s approach to violent crime. In 2023, the office formalized its violence reduction strategy: One Eastern District of Michigan or One EDMI. The initiative is designed to identify evidence-based strategies that have proven effective in reducing violent crime and bringing together a coalition of community, government, and law enforcement stakeholders to implement those strategies. One EDMI is a vision for the District that aims to empower local communities to use those tools they believe will be the most effective in their area, rather than apply the same practices to every situation or location.
Under Ms. Ison’s leadership, and as a part of the One EDMI partnership, the office relied on evidence-based strategies and partnered with stakeholders in the community, government, and law enforcement to lower the rate of violent crime. As a result, Assistant United States Attorneys were able to focus their efforts on the true drivers of violence–the people, groups, and places most likely to be engaged in violent crime. The office’s efforts coalesced around three principles: focus, balance, and fairness, with the goal of balancing law enforcement strategies with prevention and outreach to deter future violence. The office also committed to being transparent about its work and its outcomes so that the community would commit to this effort with a renewed confidence in the fairness of our approach.
In April 2023, the office announced the creation of the first One EDMI subgroup, One Detroit. The United States Attorney’s Office joined with a broad coalition of law enforcement, government, community, and faith partners to create One Detroit. The One Detroit partners committed to reducing violence while fostering legitimacy through engagement, coordination, and action.
In addition to revamping the enforcement strategy, Ms. Ison and the One Detroit partners focused on crime prevention. One Detroit’s prevention efforts brought Peacenics to Detroit’s 8th and 9th Precincts over the last three summers. The Peacenics are a collective gathering of the community and law enforcement coming together in the name of peace and where residents can have fun, engage with law enforcement, and obtain resources to improve the quality of their lives. The Peacenics featured vendors offering a variety of resources including job training, literacy programs, mental health and medical screenings, utility assistance, educational and vocational opportunities, tutorial and career development programs, expungement assistance, and more.
One Detroit’s reentry pillar focused on engaging with justice-impacted residents through community roundtables. The roundtables are made up of people who are currently on federal supervised release or state court probation who have been identified by the United States Probation Department and the Michigan Department of Corrections as being at moderate or severe risk of committing violent crimes. More than 200 justice-impacted residents have been served through the community roundtables so far.
One Detroit’s efforts have been successful. Violent crime in Detroit has plummeted to historic lows. Detroit ended 2024 with 203 criminal homicides, a 19% drop from 2023, and the fewest number of homicides since 1965. As a result, the One Detroit Violence Reduction Partnership was recognized as a national model by the Department of Justice.
The U.S. Attorney’s office has implemented elements of the violence reduction strategy across the Eastern District of Michigan, focusing its enforcement efforts on the drivers of violence. Those efforts have resulted in significant reductions in violent crime in Jackson and Pontiac. The prevention and reentry strategies have also been deployed elsewhere in the Eastern District of Michigan as Flint hosted its first community roundtable for justice-impacted residents in November 2024.
Protecting Civil Rights
Protecting civil rights has long been a top priority for the U.S. Attorney’s Office for the Eastern District of Michigan and the Department of Justice. Similarly, the U.S. Attorney’s Office for the Eastern District of Michigan has a long history of engaging in robust civil rights enforcement efforts. But under Ms. Ison’s leadership, the office redoubled its efforts. In addition to the office’s Civil Rights Unit, which is responsible for pursing civil enforcement actions, she formed the new Public Corruption and Civil Rights Unit to emphasize our commitment to prosecuting criminal civil rights cases. Ms. Ison paired these vigorous prosecutions with robust community engagement. During Ms. Ison’s tenure, the United States Attorney’s office has trained more than 800 community members how to identify, report, and help prevent hate crimes in 10 events across the District as part of DOJ’s United Against Hate Initiative. The U.S. Attorney’s Office has also handled several significant civil rights matters under the leadership of U.S. Attorney Ison. Those matters include:
Prosecuting Traditional Federal Crimes
Under Ms. Ison’s leadership, the office also focused on rooting out public corruption, combatting white collar crime, including pandemic-related fraud, and protecting the District’s citizens. Significant accomplishments in those areas include:
- The Mayor of Inkster was indicted and later pleaded guilty to bribery charges.
- The Mayor of Taylor was sentenced to nearly 6 years in prison for conspiracy to receive bribes and wire fraud.
- The President of the Madison Heights School Board pleaded guilty to bribery and tax evasion charges and was sentenced to almost 4 years in prison.
- A guilty plea to wire fraud and money laundering charges from the former Chief Financial Officer of the Detroit Riverfront Conservancy for embezzling more than $40 million from the nonprofit. The plea also included a restitution agreement requiring him to pay no less than $44.3 million in restitution because of his conduct.
- The office has charged 127 individuals with participating in pandemic fraud schemes, ranging from unemployment insurance fraud conspiracies to fraud in pandemic loan programs. Of the individuals charged in such cases, the United States has thus far obtained more than 81 convictions.
- FCA US LLC (now known as Stellantis) paid a $300 million fine after pleading guilty to conspiracy to defraud the United States as part of a scheme to cheat U.S. regulators and customers by making false and misleading representations about its emissions control systems on diesel vehicles.
- A conviction at trial against an ISIS fighter who left his home in Michigan and travelled to Yemen and Syria where he obtained ISIS training and spent more than 2 years as an ISIS soldier.
- The U.S. Attorney’s Office under Ms. Ison’s leadership has also protected the federal treasury by successfully defending lawsuits brought against the United States and collecting dollars that were owed to the United States. The office has collected more than $400 million in criminal and civil actions in judgments, fines, restitution, and forfeiture. These funds were returned to victims and taxpayers and represent more than four times the office’s operating budget over the last three years.
Ms. Ison became U.S. Attorney after serving as an Assistant United States Attorney for 19 years. In addition to being United States Attorney, Ms. Ison also served on the Attorney General’s Advisory Committee, advising the Attorney General on policy, procedure, and management impacting U.S. Attorney’s Offices.
Prior to becoming United States Attorney, Ms. Ison served as an Assistant United States Attorney in the Public Corruption Unit, the Drug Task Force, and the General Crimes Units. She also served for four years as the Chief of the Drug Task Force. Prior to her government service, Ms. Ison spent twelve years in private practice as criminal defense attorney. U.S. Attorney Ison has not announced her future plans.
Under the Vacancies Reform Act, First Assistant United States Attorney, Julie A. Beck will become the Acting U.S. Attorney for the Eastern District of Michigan until a successor for U.S. Attorney Ison is nominated by the President and confirmed by the Senate.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws, protecting civil rights, and representing the federal government in civil litigation in 34 counties in the Eastern District of Michigan. The Office currently has approximately 120 Assistant U.S. Attorneys and approximately 90 staff members at offices in Detroit, Flint, and Bay City.
Three Members of Violent National Gang SentencedRead the Press Release
DETROIT – Three members of the Almighty Vice Lord Nation (“AVLN”) were sentenced in federal court this week after a jury convicted them of RICO conspiracy, murder, drug trafficking, and weapons charges on April 23 of this year, United States Attorney Dawn N. Ison announced today. Ison was joined in the announcement by James Deir, Special Agent in Charge of the Detroit Field Office of the Alcohol, Tobacco, Firearms and Explosives (ATF).
Evidence presented at trial, before United States District Judge Jonathan J.C. Grey, proved the Almighty Vice Lord Nation (AVLN) was a vast criminal enterprise which committed acts of violence, drug trafficking, weapons offenses, and other crimes across the country. The AVLN are divided into different branches, each with their own leadership that answers to a “board” in Chicago. The trial involved members of the Traveling Vice Lords in Detroit, Michigan. The jury convicted:
• Terry Douglas, 44, of Detroit, who held the title of “Chief” and was the Michigan leader of the Traveling Vice Lords. Douglas was sentenced to 60 years in prison.
• Schuyler Belew, 31, of Detroit, who held the title of “Universal Elite” and was the Detroit leader of the Traveling Vice Lords. Belew was sentenced to 60 years in prison.
• Devun Baskerville, 34, of Detroit, who held the title of “Chief Enforcer” for the Traveling Vice Lords. Baskerville was sentenced to 70 years in prison.
The evidence at trial showed that these members of the AVLN worked together to further the AVLN, which involved AVLN members committing racketeering acts such as murder, narcotics trafficking, and witness intimidation. The jury heard testimony concerning a brazen shooting that took place in broad daylight at a Detroit park. In that shooting, Baskerville, acting upon orders from Douglas and Belew, murdered an individual suspected of cooperating with law enforcement and attempted to murder his girlfriend when he shot several times into her vehicle as she tried to flee. Also in the vehicle were her two young children, who miraculously, were not harmed. The girlfriend, who was pregnant at the time, suffered gunshot wounds but survived.
The jury also convicted Lawon Carter of drug trafficking and weapons offenses. Carter’s sentencing is set for April 28, 2025.
“The sentences handed down in this case should send a clear message to violent offenders who terrorize our neighborhoods: we won’t stop until you are brought to justice,” said U.S. Attorney Ison. “It is my sincere hope that these sentences bring some closure to the victim’s family.”
“The sentencing of three more members of the Almighty Vice Lord Nation (AVLN) is proof that ATF and its partners have zero tolerance for gang members who use illegal firearms to intimidate and murder our community members. This case was a complete reckoning of this gang and should serve as a wake-up call for gang members across Michigan. These three defendants represent the worst of the worst in our community. Greed bought them a one-way ticket straight into federal prison. It should be common knowledge throughout Michigan: violent gang activity will not be tolerated and will be disrupted; if you pack an illegal firearm to threaten and intimidate people in our community – pack a bag. You’re going to go to federal prison,” said, Special Agent in Charge James Deir.
This prosecution was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Also instrumental in the investigation and prosecution of this case was the Detroit Police Department, and the Michigan Department of Corrections (MDOC) investigation staff.
First of Multiple Individuals Sentenced for Federal Kidnapping ConvictionRead the Press Release
DETROIT – Cortez Blake, 23, of Detroit was sentenced to 16 years and 6 months in federal prison yesterday following a conviction for federal kidnapping, United States Attorney Dawn N. Ison announced today. Ison was joined in the announced by Special Agent in Charge James M. Deir of the ATF in Michigan.
Cortez Blake was found guilty of kidnapping on August 12, 2024, after a jury trial. In total seven people were charged with conspiracy to kidnap and kidnapping from this incident. Five people have been convicted. Blake and Nasir Lewis, 24, were convicted of kidnapping at trial, while Maijah Greene, 24, pleaded guilty to conspiracy to kidnap; and Shatonnia Kimbrough, 21, pleaded guilty to kidnapping. The trial of a sixth individual, Semaj Ayers, remains pending. The final defendant, Karamoh Turner, was acquitted at trial.
Two additional people were convicted of the carjacking that precipitated the kidnapping. Jamar Lee-Stinson pleaded guilty to carjacking and discharging a firearm during a crime of violence and was sentenced to 11 and a half years in prison in May 2024. Amiaya Bryant also pleaded guilty to carjacking and discharging a firearm during a crime of violence and was sentenced to 10 years in prison in June 2024.
During the trial, the evidence established that the defendants worked with others to kidnap and beat their victim. The kidnappers wrongly believed the victim took part in a carjacking and the kidnapping was to retaliate and extract information from the victim. According to the testimony, a group of armed men took the victim from a local business. The kidnappers first drove the victim to an empty lot in Detroit where the victim was beaten. The kidnappers then took the victim to a residence controlled by Blake, where the victim was held at gunpoint and beaten intermittently for hours. Finally, the victim was abandoned miles away on the roadside.
At trial, the evidence further established that the victim was held against her will at gunpoint in a house in Detroit where she was physically beaten. This was done in part to get information from her. Cellphones were used to recruit and direct others to join the kidnapping of the victim. Cortez Blake intentionally assisted in the kidnapping by participating in the beating and interrogation of the victim.
“Street justice cannot take place in this community. This sentence sends the first message in this case, and beyond, that one alleged wrong cannot justify retribution. This senseless cycle of violence will not be tolerated, and my office will continue to hold those who engage in violence, even if in the name of vengeance, accountable no matter the circumstances,” said U.S. Attorney Ison.
"This sentence is proof that ATF Detroit and its state and local partners have zero tolerance for anyone who chooses to use an illegal firearm to retaliate, intimidate, and/or harm a member of our community. Cortez Blake’s actions are reprehensible. He and his partners-in-crime kidnapped and beat a Detroit community member with an illegal firearm. Blake is a common-day coward who puts gang membership and nonsensical gang loyalty above everything else, including his humanity. In my experience,” said Special Agent in Charge James Deir, “Blake is an ATF posterchild of the type of thug ATF is laser-focused on identifying, prosecuting, and ultimately removing from our community. As such, he is the most deserving candidate for federal prosecution and Detroit is safer with him not in the city any longer.”
The United States Attorney’s Office and the ATF are focused on prosecuting those individuals who are using firearms to commit violent acts against people in the Eastern District of Michigan. The strategy is a part of the United States Attorney’s Office’s Project Safe Neighborhoods (PSN) initiative. PSN continues to be the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems and develop comprehensive solutions to address them. PSN is an evidence-based program that focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs to pursue lasting reductions in crime.
These charges are just some of the tangible results of this joint effort. The United States Attorney’s Office and our law enforcement partners will continue to work together to reduce violence in our communities. Along with ATF, this case has been investigated with the assistance of the Office of Inspector General – U.S. Department of Labor, the United States Marshals Service, the Detroit Police Department’s Gang Intelligence Unit, and the Michigan Department of Corrections.
Michigan Man Pleads Guilty to Hate Crime for Plotting Mass Shooting of Gay CommunityRead the Press Release
A Michigan man pleaded guilty today to one count of committing a hate crime by attempting to carry out a mass killing.
According to court documents, Mack Davis, 22, of Owosso, admitted that he attempted to conduct a mass killing of individuals at a political party headquarters and a nearby bar in the Eastern District of Michigan because he associated both locations with gay people.
“This defendant amassed an arsenal of firearms, rounds of ammunition and bombmaking parts that he intended to use to carry out the mass killing of gay people. This kind of vile and heinous hate-fueled violence, intended to target innocent people based on their sexual orientation, runs contrary to our values as Americans,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Bias-motivated crimes targeting the LGBTQI+ community will not be tolerated. The Justice Department will continue using every tool at our disposal to protect communities from the scourge of hate-fueled violence by prosecuting those who carry out or attempt to carry out such crimes.”
“Davis’ plans were chilling. He intended to commit mass shootings at two locations — destroying countless lives and devastating our community — all because of his fanatical hatred for gay people,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “I applaud the work of law enforcement in disrupting this awful plot and arresting Davis before he could carry out his planned attacks. Today’s guilty plea is a reflection of my office’s commitment to prosecuting bias crimes and is a critical step in holding this defendant accountable for his actions.”
“Mack Davis’ guilty plea to a federal hate crime highlights the unwavering dedication of law enforcement to uphold the safety and security of every community in Michigan,” said Special Agent in Charge Cheyvoryea Gibson of FBI Detroit Field Office. “This case serves as a stark reminder that there is no tolerance for hate-fueled violence. Davis confessed to devising a plan motivated by his deep-seated hatred, targeting innocent individuals associated with the LGBTQIA+ community. The FBI’s Detroit Field Office, Flint Resident Agency, in collaboration with the Owosso Police Department, the Bureau of Alcohol, Tobacco and Firearms (ATF), and the Michigan State Police, acted swiftly to prevent this malicious scheme from being carried out. Our collective action disrupted a serious threat and reaffirmed our commitment to protecting vulnerable communities from harm. Michigan law enforcement remains committed to ensuring all individuals live free from fear of violence or discrimination. We are dedicated to combating hate, protecting the safety and well-being of Michigan residents, and fostering a safe environment where everyone, regardless of identity, can thrive in peace.”
According to court documents, from at least July 2023 through June 2024, Davis accessed search engines and social media sites to research, post about, and pay tribute to mass killers, and wrote about dozens of mass killers in journals and on other items in his home. During that period, Davis also began to plot his own mass killing, by, among other things, drafting lists of weapons and tactical gear he owned and intended to acquire for use in his mass killing. By June, Davis had crossed off every item on the list of weapons and tactical gear he intended to acquire, and had amassed an arsenal that included two firearms, magazines, hundreds of rounds of ammunition, a crossbow and arrows, assorted bomb-making parts, smoke grenades, tactical gear and clothing and several knives. Davis inscribed one of the knives with the anti-gay slur, “FAGGOT Killer.”
From April through June, Davis solidified his plan to commit the mass killing. Among other acts, Davis posted on a social media site that he intended to commit a mass killing at a political party headquarters, which Davis referred to as “Location 1,” that Davis wrote was “filled with far-left liberal, faggot scum.” Davis wrote that he would continue the mass killing at “Location 2,” a nearby bar that Davis wrote was “a faggot bar.” Davis researched both locations online, conducted physical surveillance of both locations and posted about his research and surveillance on the social media site. During that period, Davis also vandalized two cars that belonged to his neighbors, whom he knew to be gay, by spray-painting the word “fag” on one of the cars. Days later, Davis also test-fired one of his firearms, an illegal short-barreled rifle, by firing approximately 60 bullets into several of his neighbors’ properties, including one of the cars that he had previously vandalized.
The Owosso Police Department arrested Davis for that shooting. Davis was later transferred to federal custody, where he has remained since.
A sentencing hearing will be scheduled for a later date. Because Davis’s hate crime involved an attempt to kill, he faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Detroit Field Office investigated the case, with assistance the from the Owosso Police Department, ATF and Michigan State Police.
Assistant U.S. Attorneys Frances Lee Carlson and Christopher W. Rawsthorne for the Eastern District of Michigan and Trial Attorney Erin Monju of the Civil Rights Division’s Criminal Section are prosecuting the case.
A Michigan Man Pleaded Guilty Today to One Count of Committing A Hate Crime by Attempting to Carry Out a Mass KillingRead the Press Release
FLINT - According to court documents, Mack Davis, 22, of Owosso, admitted that he attempted to conduct a mass killing of individuals at a political party headquarters and a nearby bar in the Eastern District of Michigan because he associated both locations with gay people.
“This defendant amassed an arsenal of firearms, rounds of ammunition and bombmaking parts that he intended to use to carry out the mass killing of gay people. This kind of vile and heinous hate-fueled violence, intended to target innocent people based on their sexual orientation, runs contrary to our values as Americans,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Bias-motivated crimes targeting the LGBTQI+ community will not be tolerated. The Justice Department will continue using every tool at our disposal to protect communities from the scourge of hate-fueled violence by prosecuting those who carry out or attempt to carry out such crimes.”
“Davis’ plans were chilling. He intended to commit mass shootings at two locations — destroying countless lives and devastating our community — all because of his fanatical hatred for gay people,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “I applaud the work of law enforcement in disrupting this awful plot and arresting Davis before he could carry out his planned attacks. Today’s guilty plea is a reflection of my office’s commitment to prosecuting bias crimes and is a critical step in holding this defendant accountable for his actions.”
“Mack Davis’ guilty plea to a federal hate crime highlights the unwavering dedication of law enforcement to uphold the safety and security of every community in Michigan,” said Special Agent in Charge Cheyvoryea Gibson of FBI Detroit Field Office. “This case serves as a stark reminder that there is no tolerance for hate-fueled violence. Davis confessed to devising a plan motivated by his deep-seated hatred, targeting innocent individuals associated with the LGBTQIA+ community. The FBI’s Detroit Field Office, Flint Resident Agency, in collaboration with the Owosso Police Department, the Bureau of Alcohol, Tobacco and Firearms (ATF), and the Michigan State Police, acted swiftly to prevent this malicious scheme from being carried out. Our collective action disrupted a serious threat and reaffirmed our commitment to protecting vulnerable communities from harm. Michigan law enforcement remains committed to ensuring all individuals live free from fear of violence or discrimination. We are dedicated to combating hate, protecting the safety and well-being of Michigan residents, and fostering a safe environment where everyone, regardless of identity, can thrive in peace.”
According to court documents, from at least July 2023 through June 2024, Davis accessed search engines and social media sites to research, post about, and pay tribute to mass killers, and wrote about dozens of mass killers in journals and on other items in his home. During that period, Davis also began to plot his own mass killing, by, among other things, drafting lists of weapons and tactical gear he owned and intended to acquire for use in his mass killing. By June, Davis had crossed off every item on the list of weapons and tactical gear he intended to acquire, and had amassed an arsenal that included two firearms, magazines, hundreds of rounds of ammunition, a crossbow and arrows, assorted bomb-making parts, smoke grenades, tactical gear and clothing and several knives. Davis inscribed one of the knives with the anti-gay slur, “FAGGOT Killer.”
From April through June, Davis solidified his plan to commit the mass killing. Among other acts, Davis posted on a social media site that he intended to commit a mass killing at a political party headquarters, which Davis referred to as “Location 1,” that Davis wrote was “filled with far-left liberal, faggot scum.” Davis wrote that he would continue the mass killing at “Location 2,” a nearby bar that Davis wrote was “a faggot bar.” Davis researched both locations online, conducted physical surveillance of both locations and posted about his research and surveillance on the social media site. During that period, Davis also vandalized two cars that belonged to his neighbors, whom he knew to be gay, by spray-painting the word “fag” on one of the cars. Days later, Davis also test-fired one of his firearms, an illegal short-barreled rifle, by firing approximately 60 bullets into several of his neighbors’ properties, including one of the cars that he had previously vandalized.
The Owosso Police Department arrested Davis for that shooting. Davis was later transferred to federal custody, where he has remained since.
A sentencing hearing will be scheduled for a later date. Because Davis’s hate crime involved an attempt to kill, he faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Detroit Field Office investigated the case, with assistance the from the Owosso Police Department, ATF and Michigan State Police.
Assistant U.S. Attorneys Frances Lee Carlson and Christopher W. Rawsthorne for the Eastern District of Michigan and Trial Attorney Erin Monju of the Civil Rights Division’s Criminal Section are prosecuting the case.
Feds Continue to Target Gun TraffickersRead the Press Release
DETROIT – Bishop Allen, 26, was sentenced yesterday to 2 years and 6 months in federal prison for his role in a firearm trafficking ring, United States Attorney Dawn N. Ison announced. This is the latest in a series of prosecutions by the United States Attorney’s Office targeting straw purchasers and gun traffickers. A straw purchaser is someone who unlawfully purchases a gun for another, typically a person who is prohibited by law from possessing one or for someone who does not want their name associated with the transaction. Since the beginning of 2022, at least 20 people have been convicted in federal court in Detroit for their involvement in the straw purchasing of firearms.
Ison was joined in the announcement by Special Agent in Charge James Deir, Bureau of Alcohol, Tobacco, Firearms and Explosives, Detroit Division.
“My office is committed to keeping guns out of the hands of convicted felons and will aggressively prosecute not just the leaders of these gun trafficking organizations, but also the straw purchasers who make these schemes possible. Lying when buying a gun for someone else is a serious crime that deserves just punishments like these,” U.S. Attorney Ison said. “Our commitment to preventing the illegal flow of firearms is unwavering, and we will continue to use every tool at our disposal to ensure the safety of our citizens.”
“Identifying and prosecuting illegal firearm traffickers who knowingly place illegally purchased firearms in the hands of criminals as a money-making scheme is ATF’s top priority. Cases like this represent the worst side of personal greed. Bishop Allen and his co-conspirators knowingly placed our community’s safety second to their collective greed to make a buck,” said ATF Detroit Field Division Special Agent in Charge James Deir. “Ultimately, Mr. Allen is going to have a lot of free time to reflect on his poor decision making.”
Among the cases brought in federal court are:
United States v. Chauncey Williams, et al.
Chauncey Williams, Antonio Jackson, and Mike Chahoua were leaders of a scheme to use stolen credit card information to buy firearms online, which were then shipped to local firearm retailers for pickup. The leaders enlisted several straw purchasers to pick up firearms. To get the firearms, the straw purchasers were directed to lie on the required ATF paperwork. In total, the group illegally obtained at least 55 firearms through the scheme. Several of the firearms have been recovered by law enforcement, including in the hands of convicted felons.
The three leaders of the trafficking ring were sentenced as follows:
- Chauncey Williams, age 24 of Detroit: 81 months’ imprisonment
- Antonio Jackson, age 24 of Detroit: 94 months’ imprisonment
- Mike Chahoua, age 25 of Detroit: 52 months’ imprisonment
The straw purchasers involved in the trafficking ring were sentenced as follows:
- Garcia Moses, age 26 of Detroit: 54 months’ imprisonment
- Emmanuel Stevens, age 23 of Detroit: 46 months’ imprisonment
- Donte Turner, age 27 of Mt. Clemens: 30 months’ imprisonment
- James Jackson, age 25 of Detroit: 30 months’ imprisonment
- Eshon Rose, age 24 of Redford Charter Township: 18 months’ imprisonment
- Bishop Allen, age 26 of Detroit: 30 months’ imprisonment
United States v. Ruemondo Murray, et al.
Earlier this year, Ruemondo Murray was sentenced to 52 months’ imprisonment for directing a separate conspiracy to straw purchase firearms. According to court documents, 6 women involved in that conspiracy purchased a total of 24 firearms on behalf of Murray from multiple federally licensed firearms dealers in metro Detroit. When the women made the purchases, they falsely affirmed on federal firearms purchase documents that they were the actual buyer of the firearms, when in fact, they were purchasing them for Murray. Murray is prohibited from possessing firearms due to his previous felony convictions of robbery and felony firearm.
In total, the group illegally obtained at least 24 firearms. All of the remaining straw purchasers involved in the trafficking ring have already pleaded guilty to felony offenses and been sentenced.
United States v. Nathan Price
On July 11, 2024, Nathan Price pleaded guilty to Making a False Statement During the Acquisition of a Firearm, in violation of federal law. Between December 2023 and February 2024, Price straw purchased 10 firearms from various federal firearms dealers in the Detroit area. For each purchase, he falsely declared that he was the actual purchaser of the firearm. He was sentenced to a year and a day in prison.
United States v. Kai Edwards & Quentin Luster
In November of 2022, Kai Edwards entered a gun store with a convicted felon, Quentin Luster, and purchased two firearms at his request. In 2024, Edwards pleaded guilty and was sentenced. On August 15, 2024, Luster entered a guilty plea to straw purchase of a firearm and was sentenced to 27 months in federal prison.
United States v. Omar Shorter
From 2020 to 2022, Omar Shorter purchased approximately 39 guns. On April 10, 2024, a jury found Shorter guilty of Making a False Statement During the Acquisition of a Firearm and Engaging in the Business of Selling Firearms without a License. Of the 39 guns Shorter purchased, 9 were recovered by police officers during felony arrests and 3 were involved in non-fatal shootings. Shorter was sentenced to 14 months in prison.
These cases are a part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The Alcohol, Tobacco, Firearms and Explosives’ campaign "Don’t Lie for the Other Guy" is a part of PSN aimed at reducing firearm “straw purchases,” the illegal purchase of a firearm by one person for another, and to educate would-be straw purchasers of the penalties of knowingly participating in an illegal firearm purchase. More information about the campaign can be found at: www.dontlie.org.
Warren Man Pleads Guilty to Hate Crime Offense for Defacing Predominantly Black ChurchRead the Press Release
DETROIT - A Warren, Michigan man pleaded guilty today to defacing a predominantly Black church in Roseville, Michigan, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Assistant Attorney General Kristen Clark of the Justice Department’s Civil Rights Division, and Chevoryea Gibson, Special Agent in Charge of the Detroit Field Division of the Federal Bureau of Investigation.
According to court documents, in October 2021, David Bluer, 34, spray-painted several swastikas, the word “die,” and other graffiti on the Roseville church because of the race and color of individuals associated with the church. Specifically, the defendant admitted that he intentionally defaced the church because the church serves a predominantly Black congregation and has a Black pastor.
For this, Bluer pleaded guilty to one count of damaging religious property. Bluer faces a maximum penalty of one year in prison.
“Today’s guilty plea should send a clear message that our office will aggressively protect our district’s houses of worship, including against attacks motivated by race and color,” U.S. Attorney Ison said.
"Racially motivated crimes have no place in our society," said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. "Hate crimes are message crimes intended to sow fear and terror in communities. Through this prosecution, the Justice Department sends its own message — that we will protect communities from such hate-fueled violence and use every tool at our disposal to investigate and prosecute those who perpetrate these heinous attacks."
“David Bluer's guilty plea to a hate crime for defacing a predominantly Black church underscores the FBI's steadfast commitment to addressing civil rights violations and holding individuals accountable for acts of hate. This targeted criminal act, coupled with Mr. Bluer's admission of harboring hatred based on race and ethnicity, highlights the FBI's dedication to safeguarding faith-based communities in Michigan," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI plays a critical role in investigating hate crimes, especially those targeting vulnerable communities. Acts of hate and violence, such as defacing places of worship, not only violates the law but also seek to instill fear and division in our communities. The FBI's involvement in this case, in collaboration with the Roseville and Warren Police Departments, exemplifies the FBIs proactive approach to protecting individuals from hate-fueled acts and ensuring that perpetrators are held accountable for their despicable actions. By working closely with local law enforcement, the FBI ensures that those who commit hate crimes are identified, investigated, and prosecuted to the fullest extent of the law. Their continued efforts demonstrate an unwavering commitment to protecting all communities, upholding civil rights, preserving the safety of places of worship, and ensuring justice for victims of intolerance.”
Bluer is scheduled to be sentenced on March 19, 2025.
The case is being prosecuted by Assistant U.S. Attorney Frances Carlson of the Eastern District of Michigan and Trial Attorney Erin Monju of the Justice Department’s Civil Rights Division.
Detroit Man Sentenced to over 7 years in Prison for Two-Day Crime SpreeRead the Press Release
DETROIT –A Detroit man was sentenced to 7 ½ years in prison yesterday for stealing nearly 50 firearms from a gun store in Dearborn Heights, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by James Deir, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
Deon Bell, 29, was sentenced to 90 months’ imprisonment, which will run consecutive to a 102-month sentence imposed on Bell in a separate armed robbery case involving a T-Mobile store.
According to court documents, for the first burglary, Bell recruited three young men, one of whom was a juvenile, to help him steal guns from a licensed gun store in Dearborn Heights. The group stole a car, crashed it into the front of the store, and stole 22 weapons. Bell did it again the next night, this time recruiting two other juveniles to join his crime spree. The group again stole a car, crashed it into the front of the gun store, and stole 25 more weapons. After this second robbery, Bell led police officers on a high-speed chase, putting all on the road at risk. Several of the stolen guns were recovered by law enforcement in other investigations, but many are still unaccounted for.
This was the most recent conviction for Bell, who has a long criminal history including drug trafficking, carrying a concealed weapon, criminal sexual conduct 3rd degree, and armed robbery.
“Stealing cars, crashing them into gun stores to rob them, and putting nearly 50 stolen guns on the street endangered our community in so many ways,” U.S. Attorney Ison said. “Worse still is the fact that Bell recruited juveniles to commit these crimes with him. Deon Bell’s repeated, reckless violent conduct has no place in our community.”
“Deon Bell is a menace to our community’s safety. He concocted a burglary scheme to funnel illegal weapons into our community. Furthermore, Mr. Bell cowardly recruited and manipulated juveniles in our community to further perpetrate his criminal acts putting our community’s safety at risk. Burglaries of federal firearms licensees continue to be one of ATF’s top priorities,” said Detroit Field Division Special Agent in Charge James Deir Simply put: “Greed is bad. There is no place in our community for illegal firearms traffickers whose personal greed to make a quick buck leads them to burglarize firearm dealers in our community. They will be held accountable.”
This case was investigated by agents from ATF, but started with Dearborn Heights Police Department. The case is being prosecuted by Assistant U.S. Attorneys Erin Ramamurthy, Meghan Bean, and Hank Moon.
United States Attorney Dawn N. Ison and HUD Inspector General Rae Oliver Davis Host Safe Housing SummitsRead the Press Release
DETROIT – United States Attorney for the Eastern District of Michigan Dawn N. Ison and U.S. Department of Housing and Urban Development Inspector General Rae Oliver Davis hosted two summits yesterday focused on promoting the health, safety, and civil rights of tenants living in HUD-assisted housing. The program focused on combatting sexual misconduct and eliminating environmental hazards in HUD-assisted housing.
The summits, which took place at Anderson Enrichment Center in Saginaw and Kemeny Recreation Center in Detroit, were part of the U.S. Department of Justice’s and Inspector General’s complementary initiatives to promote safe housing related to eliminating environmental hazards such as lead-based paint and how to recognize and report sexual harassment and misconduct.
“Everyone should be able to live safely in their homes, free from exposure to environmental hazards, and free from being subjected to harassment from their landlord,” said U.S. Attorney Ison. “We convened these summits today to raise awareness that residents have protections under federal law and that the U.S. Attorney’s Office, together with our partners at HUD OIG, will continue to work every day to eradicate sexual harassment and environmental hazards in housing throughout the Eastern District of Michigan.”
“In partnership with U.S. Attorney Ison and her colleagues across the Nation, we remain dedicated to combatting sexual misconduct by housing providers and ensuring HUD-assisted tenants live in units free from lead and other environmental hazards,” said Inspector General Oliver Davis. “Opportunities like those we held today engaging community stakeholders in safe housing summits demonstrate HUD OIG’s commitment to holding accountable housing providers for putting the health and safety of HUD-assisted families at risk, and bringing to justice those who victimize vulnerable tenants.”
Participants included representatives from organizations that routinely work with vulnerable populations most likely to be impacted by environmental hazards, such as lead-based paint in their homes, or subjected to sexual harassment in housing by their landlords, property managers, or others with control over housing. The organizations represented included legal services offices, fair housing organizations, civil rights groups, shelters, and social service organizations.
If you or someone you know has information about environmental hazards and unsafe conditions in HUD-assisted housing or has been a victim of sexual harassment, sexual assault, or sexual exploitation – even if the events occurred years ago – report it to the HUD Office of Inspector General Hotline at 1-800-347-3735 or visit the website at www. https://hudoig.gov/hotline. You may also file a complaint with HUD’s Office of Fair Housing and Equal Opportunity at www.hud.gov/fairhousing/fileacomplaint.
Individuals who believe they have been victims of sexual harassment in housing, or discrimination may also contact the U.S. Attorney’s Office at 1-313-226-9151 or email us at [email protected].
A State of Washington Man Involved in a Massive Drug Distribution Scheme Sentenced to over 12 Years in Federal PrisonRead the Press Release
DETROIT – A State of Washington man was sentenced to 12 ½ years in prison for his role in an armed drug conspiracy that amassed nearly 200 pounds of methamphetamine and other controlled substances, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Orville O. Greene, Special Agent in Charge of the Detroit Division of the Drug Enforcement Administration(DEA) and Rodney Hopkins, Inspector in Charge of the Detroit Division of the United States Postal Inspection Service (USPIS).
Antonio D.J. Mitchell, 39, of Seattle, Washington was sentenced to 150 months in prison by United States District Judge Linda V. Parker.
According to court documents, DEA and USPIS agents learned through their investigation that Keith Haskins had been mailing kilograms of methamphetamine, fentanyl, and cocaine from California to his associate in Detroit, Kennie Smith. Federal agents intercepted several of these parcels, many of which contained drugs packaged inside of plastic buckets from a hardware store chain. Smith then managed distribution in the Detroit area from several of his properties.
Haskins later recruited Mitchell to assist with transporting drugs and drug proceeds between the southwestern United States and Michigan. Haskins and Mitchell eventually moved to Detroit and expanded their operations. The pair rented a storage unit and a downtown apartment where, in November 2021, agents found over 87 kilograms of methamphetamine, 3 kilograms of fentanyl, one kilogram of cocaine, seven firearms, and hundreds of rounds of ammunition, including a drum-style magazine.
Four members of the conspiracy were charged in federal court. Haskins, Smith, and Mitchell each pleaded guilty to conspiracy to distribute methamphetamine, fentanyl, and cocaine, as well as possessing or attempting to possess with the intent to distribute methamphetamine. Haskins, 47, of San Bernardino County, California, was previously sentenced to 18 years in prison. Smith, 46, of Clinton Township, Michigan, received 125 months in prison. The fourth defendant, Chalisa Sawyer, is awaiting trial set for January 28, 2025.
“We will tirelessly pursue and prosecute drug dealers who continue to inflict harm on our communities with dangerous drugs like methamphetamine and fentanyl, whether near or far,” U.S. Attorney Ison said. “The sentences imposed in this case, should underscore that goal. I commend our law enforcement partners at DEA and USPIS whose hard work helped achieve these significant results.”
“At the time of his arrest, Mr. Mitchell and his co-conspirators were in possession of more than 87 kilograms of methamphetamine, 3 kilograms of fentanyl, and other illicit drugs. The fentanyl alone could provide a deadly dosage to 1.5 million people,” said Special Agent in Charge Orville. “DEA remains committed to dismantling criminal organizations who exchange lives for monetary gain and blatantly ignore the laws of this nation.”
“The sentences handed down thus far for these co-conspirators underscore the seriousness of the crimes at hand and the resolve with which we strive to secure the nation’s mail system and keep our customers and communities safe,” said Inspector in Charge Hopkins. “Crucial to the success of this mission are the relationships we maintain with partners at all levels. We would like to express sincere appreciation the DEA’s Detroit Division and the U.S. Attorney’s Office for the Eastern District of Michigan for their tireless work with us to achieve a successful outcome in this investigation.”
This case was investigated by special agents of the Drug Enforcement Administration and inspectors from the United States Postal Inspection Service. This case was prosecuted by Assistant U.S. Attorney Thomas Franzinger.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Florida Man Pleads Guilty to Making Hate Crime Threats against the Council on American-Islamic Relations (“CAIR”) Michigan ChapterRead the Press Release
DETROIT – A Florida man pleaded guilty today to federal charges for repeatedly threatening the Council on American-Islamic Relations (“CAIR”) Michigan Chapter, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Division of the Federal Bureau of Investigation, and Chad Baugh, Chief of the Canton Police Department.
According to court documents, Michael Shapiro, 72, of West Palm Beach, Florida, placed three separate phone calls to CAIR’s office located in Canton, Michigan, and left voicemails containing the following threats:
• December 8, 2023: “I’m going to kill you bastards. I’m going to kill you bastards.”
• December 14, 2023: ““I’m going to kill you mother f*****g bastards. Muslims! I’m going to kill you mother f*****s. I’m going to kill you! I’m going to kill you! I’m going to kill you!”
• December 15, 2023: “You’re a violent people. Why do you come to America? Why do you come to Europe? Mother f*****s. You’re violent. You’re killers. You’re rapists. I’m going to kill you mother f*****s!”
For this, Shapiro pleaded guilty to one count of transmitting threats in interstate commerce. Shapiro also admitted that he intentionally selected CAIR as the victim of his threats because of the actual and perceived religion and national origin of the people who work at and are assisted by CAIR.
“No one should be able to threaten violence and instill fear on an entire community. Today’s conviction should send a strong message that those who do so will be investigated, identified, and aggressively prosecuted,” stated U.S. Attorney Ison.
"Michael Shapiro's guilty plea for threats motivated by religious bias underscores the FBI's unwavering commitment to protecting individuals from hate and intolerance," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "This conviction serves as a powerful demonstration of the serious consequences faced by those who engage in hate-fueled threats, sending a clear warning to others. The success of this case is a direct result of the strong collaboration between the FBI Michigan and the Canton Police Department. Law enforcement efforts are greatly bolstered by the community's support, including faith-based organizations, in addressing and preventing hate crimes. Together, we remain steadfast in our dedication to combating violence rooted in bias and will continue to promote safety, respect, and justice for all members of our diverse communities. This case unequivocally illustrates that acts of hate and intolerance are met with zero tolerance by the Michigan law enforcement community. Such offenses will be vigorously prosecuted to the fullest extent of the law, exemplifying our unwavering commitment to justice and protecting all community members."
This case was investigated by the Federal Bureau of Investigation and the Canton Police Department. The case is being prosecuted by Assistant U.S. Attorney Frances Lee Carlson.
Former Detroit Riverfront Conservancy CFO Pleads Guilty to Embezzling over $40 million from ConservancyRead the Press Release
DETROIT – William A. Smith, 52, the former Chief Financial Officer for the Detroit Riverfront Conservancy, pleaded guilty today to federal charges from a years-long scheme to embezzle over $40 million from the Conservancy, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI’s Detroit Field Office and Charles Miller, Special Agent in Charge of the IRS-Criminal Investigations (IRS-CI) Detroit Field Office.
Smith pleaded guilty to one count of wire fraud and one count of money laundering. Both counts carry a statutory maximum term of twenty years imprisonment.
According to court documents, William A. Smith, of Northville, was employed as the Chief Financial Officer for the Detroit Riverfront Conservancy, Inc. (the Conservancy) from 2011 through May 2024. The Conservancy is a 501(c)(3) organization formed with the mission of developing access to the Detroit riverfront. The Conservancy envisions creation of a continuous Riverwalk from the Ambassador Bridge in the west to Gabriel Richard Park in the east, along with plazas, pavilions, and green spaces. Funding for the Conservancy is provided by both private donors and public grants. In his position as Chief Financial Officer of the Conservancy, Smith enjoyed substantial discretion in overseeing and managing the Conservancy’s financial affairs.
According to the plea agreement, beginning no later than November 2012 and continuing until May 2024, Smith orchestrated a scheme to embezzle millions of dollars in funds belonging to the DRFC. The embezzlement scheme took three principal forms:
- First, Smith diverted Conservancy funds from the organization’s bank accounts to a bank account in the name of “The Joseph Group, Inc.,” an entity owned and controlled by Smith. The Joseph Group was not an approved vendor for the Conservancy and provided no goods or services of any kind to the organization. However, between February 2013 and May 2024, Smith transferred approximately $24.4 million from the Conservancy’s bank accounts to an account in the name of the Joseph Group.
- Second, Smith maintained an American Express account in the name of another of the many entities he owned and controlled, this one called “William Smith & Associates LLC.” There were four American Express credit cards issued on this account. Between November 2012 and May 2024, Smith used approximately $14.9 million in Conservancy funds to pay off purchases made on this account. None of these expenditures were authorized by the Conservancy, which maintained other credit card accounts for Conservancy purchases. Smith used the American Express account to purchase furniture, designer clothing, handbags, lawn care services, airline tickets, and other consumer goods and services for himself and his family.
- Third, Smith used Conservancy funds to purchase cashier’s checks from various financial institutions. These cashier check purchases were unauthorized, and Smith used the cashier’s checks for his own purposes without the knowledge or approval of the Conservancy’s Board of Directors.
Smith engaged in various practices to cover up and sustain this massive fraud scheme. In some instances, Smith falsified bank statements that he provided to the Conservancy’s bookkeeper, altering or deleting unauthorized transfers on the statements in order to keep them off of the Conservancy’s books. In at least one other instance, he took out a line of credit with a financial institution (Citizen’s Bank) on behalf of the Conservancy. Smith claimed to be acting with the authorization of the Conservancy’s Board of Directors in taking out this line of credit. In fact, Smith had no such authority, and the documents he provided Citizen’s Bank purporting to show that he had such authorization were forgeries. Smith used the funds from this line of credit (which eventually totaled $5 million) to infuse monies into the Conservancy’s bank accounts to help cover up his substantial embezzlement from those accounts.
According to plea documents, Smith also took complex steps to disguise the origin of the funds he embezzled from the Conservancy. He routinely transferred the stolen Conservancy monies through elaborate chains of intermediate entities, all with the intent of concealing the source and nature of those funds.
The plea agreement states that the financial losses from Smith’s scheme are difficult to quantify with precision. However, Smith agreed to pay no less than $44.3 million in restitution as a result of his conduct.
“William Smith admitted today to perpetrating a financial crime that is astonishing in its scope and impact,” stated United States Attorney Ison. “Smith stole over $40 million dollars from the Detroit Riverfront Conservancy – a non-profit organization dedicated to creating beautiful public spaces that Detroit’s residents and visitors can use and enjoy. Smith not only betrayed the Conservancy’s trust, but he betrayed the trust of the whole community, all so that he could enjoy the trappings of wealth and comfort. I remain shocked at the scale of the fraud and the harm it has caused, and today’s guilty plea is an important step towards holding Mr. Smith accountable for his outrageous conduct.”
"Mr. Smith’s deceitful actions, which spanned for more than a decade, not only broke the trust of his employer, but the entire community,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “William Smith used his position of authority to financially profit at the expense of his employer. Today’s guilty plea is a direct result of a tireless work of members from the FBI in Detroit. The FBI remains committed to working with our partners to combat these serious white-collar crimes."
“William Smith held a position of trust and authority in the Detroit Riverfront Conservancy, an organization created to help revitalize outdoor spaces for all of the Detroit community. Such an extreme breach of that trust, millions of dollars stolen that would have benefitted the city for years to come, is almost unfathomable,” said Charles Miller, Special Agent in Charge, IRS-CI, Detroit Field Office. “IRS-CI’s role in this kind of investigation becomes even more important due to the complex financial transactions that can take time to unravel. With the guilty plea that was announced today, we know our work to hold Mr. Smith accountable for the outright lies and theft from the conservancy will lead to an appropriate consequence.”
The case is being prosecuted by Assistant U.S. Attorneys John K. Neal and Robert A. Moran. The case is being investigated by the FBI and IRS-Criminal Investigations.
Leader of Large Scale Drug Trafficking Operation Sentenced to 60 Years in Federal PrisonRead the Press Release
BAY CITY – A Detroit man was sentenced to 60 years in federal prison today for his role in a large-scale drug trafficking operation in the Saginaw-Bay region, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office.
The 720-month sentence imposed on Ricardo Delgado, II, 51, by United States District Court Judge Thomas L. Ludington, followed a week-long trial in June in which the jury found Delgado guilty of conspiracy to possess with intent to distribute and to distribute at least five kilograms of cocaine; possession with intent to distribute at least five kilograms of cocaine; possession with intent to distribute at least 400 grams of fentanyl; possession of a machinegun in furtherance of a drug trafficking crime; possession of a firearm in furtherance of a drug trafficking crime; possession of a machinegun; felon in possession of a firearm; possession of an unregistered silencer; and, use of communication facility to commit a drug offense.
Evidence at trial established that Delgado was the leader of a large-scale drug conspiracy that involved the importation of numerous kilograms of cocaine and fentanyl from Mexico for distribution in the Saginaw-Bay region. During the course of the investigation, FBI agents learned from a court-authorized wiretap that Delgado was seeking retaliation for the theft of his drugs from a subordinate and that he ordered that subordinate to exact revenge. However, this plan was thwarted by authorities. In addition, following Delgado’s arrest, law enforcement officers seized 13 kilograms of cocaine, two kilograms of fentanyl, 12 firearms, including two machineguns, two silencers, and over $200,000 in cash from Delgado’s residence.
“This defendant endangered countless individuals by trafficking in large quantities of deadly fentanyl and cocaine. He also sought to use violence to protect his trade in illicit drugs,” stated U.S. Attorney Ison. “This sentence should serve as a stark warning that our office will zealously pursue those who seek to bring illegal drugs and violence into our community.”
"Today's sentencing of Ricardo Delgado, a notorious drug trafficker, marks a critical milestone in our ongoing efforts to combat the fentanyl crisis and protect the public from its devastating effects," stated Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "The FBI Michigan remains firmly committed to addressing the dual threats of illegal firearms trafficking and drug distribution that endanger the safety of our communities. Through collaborative efforts with our local and state law enforcement partners, we continue dismantling criminal networks and disrupting the flow of harmful substances. I sincerely thank the dedicated professionals at FBI Michigan, the Bay City Department of Public Safety, the Saginaw Police Department, the Bay Area Narcotics Enforcement Team, and the Michigan State Police. Our collective determination to safeguard Michigan residents and uphold justice remains unwavering as we work to hold those who threaten public safety accountable."
This investigation was conducted by special agents of the FBI Detroit Division (Bay City Office), special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosive (ATF), and law enforcement officials from Michigan State Police, Midland Police Department, Saginaw Police Department, Saginaw Township Police Department, Bridgeport Police Department, the Bay Area Narcotics Enforcement Team (BAYANET), and the Strike Team Investigative Narcotics Group (STING).
The case was prosecuted by Assistant U.S. Attorneys Tim Turkelson and Will Orr.
Justice Department Launches Disability Rights Investigation into Unnecessary Institutionalization in Michigan’s State Psychiatric HospitalsRead the Press Release
The Justice Department announced today that it has opened an investigation under the Americans with Disabilities Act (ADA) into whether the State of Michigan unnecessarily institutionalizes adults with serious mental illness in state psychiatric hospitals. The department will investigate whether the state fails to provide necessary community-based mental health services to enable people to transition from the state psychiatric hospitals and remain stable in the community.
Prior to the announcement, the department informed the Michigan Department of Health and Human Services and the State Attorney General’s Office of the initiation of the investigation.
“The Americans with Disabilities Act protects people’s right to receive mental health services in the community, rather than remaining in hospitals when they are ready to go home,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This investigation will assess whether Michigan is honoring the ADA’s promise that people with disabilities be served in the most integrated setting appropriate. The Civil Rights Division will continue to advocate for states to provide people with disabilities the services they need to avoid unnecessary institutionalization.”
“Our office is committed to investing the resources necessary to investigate these claims because we will never tire of ensuring that every citizen is afforded the full protections of the Americans with Disabilities Act,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan.
“We open this investigation as part of our mission to protect civil rights and to ensure our neighbors with mental health disabilities can succeed and thrive in their communities,” said U.S. Attorney Mark A. Totton for the Western District of Michigan.
The Justice Department has not reached any conclusions regarding the subject matter under investigation. Individuals with relevant information are encouraged to contact the department via email at [email protected], 888-392-5415 or through the Civil Rights Division’s Civil Rights Portal at civilrights.justice.gov/.
Additional information about the Civil Rights Division’s ADA enforcement is available at www.justice.gov/crt/rights-persons-disabilities and www.justice.gov/crt/disability-rights-section.
Mt. Pleasant Man Sentenced to over 33 Years in Prison for Murder and Assault with the Intent to Murder on the Isabella ReservationRead the Press Release
Bay City, MI –A Mount Pleasant man was sentenced to over 33 years in prison for murder and other assaultive crimes, announced United States Attorney Dawn N. Ison.
Johnathan Ashford, 39, was sentenced by United States District Judge Thomas L. Ludington to 400 months’ imprisonment, after having pleaded guilty to murder, assault with intent to murder, and discharge of a firearm in furtherance of a crime of violence on July 16, 2024.
The evidence established that after having an argument with his significant other, Ashford retrieved a 9mm Taurus handgun and shot his significant other multiple times, killing her. Several of the bullets Ashford fired struck a 6-month-old child who his significant other was holding in her arms when he shot her. The baby suffered life threatening injuries, but survived. Both victims are Indians, and the incident occurred on the Isabella Reservation within Indian country in the Eastern District of Michigan.
“The violent actions of this defendant are appalling as he took the life of a young woman and seriously injured a 6-month old child,” said United States Attorney Ison. “Our office has an unwavering commitment to holding accountable those who perpetuate violence in our tribal communities.”
The case was investigated by the Saginaw Chippewa Tribal Police, the Mount Pleasant Police Department, Isabella County Sheriff’s Department, Michigan State Police, Saginaw City Police, Buena Vista Police Department, the Federal Bureau of Investigation, the Bureau of Indian Affairs, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Roy Kranz.