Western District of Michigan
Press releases recorded for this federal judicial district.
Two Men Sentenced for Paycheck Protection Program Loan FraudRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced that David Kurbanov of Wyoming, Michigan, and James Williams of Dacula, Georgia, were sentenced to 36 months’ and 33 months’ imprisonment, respectively, followed by 3 years’ supervised release, by U.S. District Judge Jane Beckering. Kurbanov and Williams both previously pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit concealment money laundering.
In 2020, law enforcement investigated Kurbanov, Williams, and others regarding certain CARES Act Paycheck Protection Program (PPP) loan applications and loans. The investigation revealed that between June 2020 and December 2020, Kurbanov and Williams conspired with each other and others to fraudulently obtain PPP loans from the Small Business Administration. Williams counseled Kurbanov on how to obtain a PPP loan for Kurbanov’s non-operational companies and assisted Kurbanov in preparing false tax documents submitted with PPP loan applications. Kurbanov and another individual ultimately obtained $1,495,067 in PPP loan funds. To date, law enforcement has seized and recovered over $1,123,567 traceable to the fraudulently obtained PPP funds through a parallel civil asset forfeiture action.
At sentencing Judge Beckering noted that Kurbanov did not just take out one loan, but two loans, which were funded for the purpose of assisting families and small businesses who were financially desperate during the pandemic. She also noted the importance of deterring others from participating in such schemes in the future. Kurbanov and Williams were both ordered to pay $1,495,067 in restitution.
U.S. Attorney Birge said, “These individuals sought to illegally profit from a program designed to assist small businesses detrimentally affected by the pandemic. Like most ‘get rich quick schemes,’ their greedy actions did not pay out in the end. Those who, like Mr. Kurbanov and Mr. Williams, attempt to acquire wealth through illegal means will get our attention and face imprisonment.”
“By illegally taking money from the Paycheck Protection Program, these defendants harmed the owners and employees of small businesses struggling through the COVID-19 pandemic,” said Josh Hauxhurst, Acting Special Agent in Charge of the FBI in Michigan. “The FBI is committed to working with our law enforcement partners to investigate and hold accountable anyone taking advantage of a global health crisis to line their own pockets.”
This case was prosecuted by Assistant U.S. Attorneys Jonathan C. Roth, and Kristin M. Pinkston and investigated by the Internal Revenue Service, the Federal Bureau of Investigations, and the Drug Enforcement Administration.
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Kalamazoo Woman Arrested and Federally Charged for Possession with Intent to Distribute 1.5 Kilograms of FentanylRead the Press Release
GRAND RAPIDS – The U.S. Attorney’s Office for the Western District of Michigan filed a criminal complaint today to arrest and charge Candi Taylor (39) of Kalamazoo, Michigan for possession with intent to distribute fentanyl.
According to court documents, the Kalamazoo Valley Enforcement Team (KVET), a multi-jurisdictional narcotics task force, has been investigating Taylor for her involvement with fentanyl distribution in and around Kalamazoo. KVET obtained a warrant to search Taylor’s residence, vehicle, and a second residence believed to be Taylor’s stash house. Taylor was in her vehicle when KVET executed the warrants and officers found her with a baggie containing approximately 10 grams of fentanyl in her hand and a digital scale nearby. Investigators found two more baggies in her coat pocket containing over 100 grams of fentanyl. A search of Taylor’s suspected stash house yielded seven baggies containing over 1,400 grams of fentanyl. For more information, please see the continuation in support of the criminal complaint available on the public docket. United States v. Taylor, No. 1:22-MJ-122 (PJG), ECF No. 1 (W.D. Mich.)
If convicted of the charges in the complaint, Taylor faces a statutory minimum of ten years and up to life in prison.
Taylor made her initial appearance on March 4, 2022 before Magistrate Judge Phillip J. Green in U.S. District Court for the Western District of Michigan.
U.S. Attorney Andrew Birge of the Western District of Michigan, Acting Special Agent in Charge Kent R. Kleinshmidt of the U.S. Drug Enforcement Administration’s Detroit Field Division, and Kalamazoo Department of Public Safety Chief Vernon L. Coakley, Jr. made the announcement.
The U.S. Drug Enforcement Administration and Kalamazoo Valley Enforcement Team are investigating the case.
Under the United States Constitution, the government must present felony cases to a grand jury and obtain indictments to proceed with prosecution. The charges in the complaint are merely accusations and are not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law. The government has the burden of proving guilt beyond a reasonable doubt.
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Three Defendants Sentenced for Illegal Bitcoin BusinessRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Christopher Allan Boden, a/k/a “Captain,” 46, of Grand Rapids, Daniel Reynold DeJager, a/k/a “Daniel Miester,” and “Danichi,” 35, of Tacoma, Washington, and Leesa Beth Vogt, a/k/a “Lis Bokt,” and “Moose,” 37, also of Grand Rapids, were sentenced by the Honorable Robert J. Jonker, Chief United States District Judge, for the commission of various financial crimes. In October, the three defendants pled guilty. Boden pled guilty to operating an unlicensed money transmitting business, money laundering, and structuring deposits to evade financial institution reporting requirements. DeJager pled guilty to conspiracy to operate an unlicensed money transmitting business and money laundering. Vogt pled guilty to structuring while operating the unlicensed money transmitting business.
The Court sentenced Boden to 30 months in custody and ordered him to pay $75,000 and forfeit bitcoin, among other penalties. DeJager received 10 months in custody for his role in the scheme and was ordered to pay $25,000. Vogt was sentenced to four years of probation and ordered to pay $62,711 to the government. In total, the defendants forfeited and were ordered to pay more than $200,000 in bitcoin and U.S. currency.
According to public records filed in the case, Boden, DeJager, and Vogt operated an unlicensed money transmitting business at The Geek Group, a registered non-profit entity, between March 2017 and December 2018, when federal agents searched the business. After the search, Boden, who was president of The Geek Group, and Vogt, its executive director, decided to close the business. DeJager purchased bitcoin from registered exchanges, often laundered it, and then sent it to Boden to sell. Boden and other staff at The Geek Group, including Vogt, would sell bitcoin to customers. Boden, Vogt, and others then “structured” deposits of the cash proceeds to avoid detection of their operation and to purchase more bitcoin. The defendants sold more than $740,000 in bitcoin. Boden’s customers included drug dealers, and he held himself out to be a money launderer, explaining to prospective customers that “people buy from” him because he sold “clean” bitcoin, not “dirty” bitcoin that could be traced. Boden boasted that he did not collect certain information required to be collected by a federal law that prevents money laundering, commonly known as “know your customer” information.
In connection with sentencing, DeJager explained to the Court that he and Boden started selling bitcoin because of their “anarchy streak”: they were drawn to “[t]he possibility of making a lot of money while deposing government controlled currency with one that was anonymous.” Boden acknowledged to the Court that they “mixed” bitcoin to thwart anti-money-laundering controls put in place by licensed cryptocurrency exchanges: they knew licensed exchanges would not sell them bitcoin if the exchanges discovered Boden’s customers were doing “something . . . illegal with it.”
Boden also solicited an undercover agent to collect a bitcoin debt that had purportedly accrued to $500,000 by using violence if necessary. Boden delivered a dossier with information on the debtor to the agent and said, among other things: “If all I wanted to do was f*** him up, his head in burlap is easy to do. I want my money. I don’t give a f*** about him; I don’t give a f*** about his family. I want my money.” And: “What happens to him, I don’t give a sh** . . . [Y]ou kill him, he ain’t gonna pay me. And, and I don’t need him dead; he’s dumb. . . . How you handle this, this is your world. I care that I get my money back. Beyond that, it’s whatever’s most efficient for you.” Boden told the agent, who he thought was a cocaine dealer, that a drug dealer was his “exact favorite kind of client.” Boden also said, “I want to get your world working on bitcoin.”
“These defendants knew they were breaking the law and ran their illegal money transmitting business anyway,” said U.S. Attorney Birge. “In addition to laundering money for their customers, some of whom were involved in drug trafficking, they set about to defeat the anti-money-laundering controls of licensed financial institutions. My hope is the Court’s sentences will deter others who think cryptocurrency operates in a lawless environment from committing similar financial crimes.”
“This case reflects the vital role HSI plays in disrupting criminals who use cryptocurrency to further their illegal enterprise,” said Homeland Security Investigations Detroit Acting Special Agent in Charge James C. Harris III. “Our special agents, working with federal and local partners, will continue to identify and investigate those who endanger our communities, and provide an avenue for criminals to conduct illegal activity.”
“These sentencings serve as an important reminder that the Internal Revenue Service – Criminal Investigation actively investigates all schemes designed to negatively impact taxpayers, including those in the emerging cryptocurrency market,” said Special Agent in Charge Sarah Kull, IRS Criminal Investigation, Detroit Field Office.
Homeland Security Investigations and IRS Criminal Investigation handled the investigation, with assistance from the Grand Rapids Police Department. Assistant U.S. Attorney Justin M. Presant prosecuted the case.
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Portage Man Pleads Guilty to Mail Fraud and Aggravated Identity Theft Related to Amazon’s Textbook Rental ProgramRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Geoffrey Mark Hays Talsma, 36, of Portage, Michigan, pled guilty in the United States District Court in Lansing, Michigan, to charges of mail fraud and aggravated identity theft. Talsma is the fourth and last individual to plead guilty to charges of defrauding Amazon’s Textbook Rental Program.
According to the plea agreement, from January 2016 to March 2021, Talsma defrauded Amazon by using the internet to create numerous Amazon accounts and email accounts to rent textbooks and sell the textbooks for a profit when he should have returned the textbooks or paid the agreed upon buy-out price. Talsma caused Amazon to ship the textbooks through the United States Postal Service or across state lines using private commercial carriers. He concealed his fraudulent activities in part by recruiting and paying unwitting individuals to accept shipments of stolen textbooks at their homes so that Amazon would not detect a pattern of large volumes of books going to locations associated with him. Over time, Talsma taught some of these same individuals his scheme to defraud and actively supervised their participation in the fraud. Defendant shared the profits of the fraud scheme with these individuals after he sold the textbooks over the internet and at various bookstores, including a bookstore in Kalamazoo, Michigan. Additionally, according to the plea agreement, Talsma also ordered rental textbooks in the names of unwitting individuals and then pretended to be those individuals when calling Amazon and falsely claiming that he did not receive the textbooks. Talsma then received a credit from Amazon that he used to order further textbooks.
Talsma’s sentencing is scheduled for June 28, 2022, in the United States District Court in Lansing, Michigan. Talsma faces a maximum term of imprisonment of 20 years for the mail fraud conviction and a maximum term of imprisonment of two years for the aggravated identity theft conviction, to be served consecutively to any sentence imposed for the mail fraud. The Court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Restitution and forfeiture of certain assets obtained with the proceeds of the scheme may also be ordered as a result of his convictions.
The offices of the Federal Bureau of Investigation, Kalamazoo, and the United States Postal Inspection Service, Grand Rapids, are handling the investigation. Amazon referred the matter to law enforcement and has supported the investigation.
Assistant U.S. Attorney Ronald M. Stella is prosecuting the case.
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Kalamazoo Man Sentenced to 23 Years in Prison for Methamphetamine Trafficking and Firearms PossessionRead the Press Release
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced that Maurice Schanta Carson (50) of Kalamazoo, Michigan was sentenced to 23 years in prison for possession with intent to distribute over a pound of methamphetamine and possession of a firearm in furtherance of drug trafficking. A repeat offender in Kalamazoo, Carson pled guilty to these charges in October 2021.
Carson’s charges and conviction stemmed from his arrest on outstanding warrants in Kalamazoo County on February 3, 2021. Inside Carson’s vehicle, investigators found a backpack containing over a pound of methamphetamine, a digital scale, and a loaded pistol. At the time of his arrest, Carson was serving a probationary sentence issued in 2020 by the Ninth Circuit Court in Kalamazoo County for possession of methamphetamine. A search warrant of Carson’s residence later that day yielded more methamphetamine, more firearms, and cash from drug trafficking. Law enforcement had to rearrest Carson on February 10, 2021 where, again, he was found in possession of approximately a pound of methamphetamine and a rifle. Carson was lodged in Kalamazoo County on local charges but made bond. Thereafter, he was charged by federal indictment and detained in federal custody pending resolution of his federal charges. In the months preceding his arrest, the Kalamazoo Valley Enforcement Team investigated Carson as a pound-level distributor of methamphetamine in and around Kalamazoo.
“Methamphetamine is a scourge in the Western District of Michigan” and “firearms and drugs are a toxic mix,” stated U.S. District Judge Paul L. Maloney when announcing Carson’s sentence. Judge Maloney observed that methamphetamine is the most frequent drug at issue in the narcotics cases that he sentences. When imposing Carson’s 23-year sentence, Judge Maloney further noted that Carson had a criminal history that began at the age of sixteen, that Carson had the highest criminal history possible under the U.S. Sentencing Guidelines, and that Carson was a threat to the law-abiding public.
“Methamphetamine has flooded Western Michigan; it is the narcotic that my office charges the most,” stated U.S. Attorney Andrew Birge. “Law enforcement agencies are working together in West Michigan out of a commitment to bring traffickers contributing to this scourge to justice – and those who traffic in this highly addictive, ruinous substance should know that they face lengthy prison terms as a consequence,” added U.S. Attorney Birge.
“This investigation demonstrates DEA’s steadfast determination to reduce drug trafficking and the associated violent crime that affects the Kalamazoo area,” said Kent R. Kleinshmidt, Acting Special Agent in Charge of the U.S. Drug Enforcement Administration’s Detroit Field Division. “We are proud to partner with Kalamazoo Department of Public Safety and the Kalamazoo Valley Enforcement Team to take guns and drugs off the streets with the intent of making our communities safer for all.”
“The Kalamazoo Department of Public Safety stands steadfast with the community to address narcotics sales and the associated crimes that stem from them to improve the overall quality of life in our city,” said Captain Rafael Diaz, Commander of the Kalamazoo Valley Enforcement Team. “It is unfortunate when individuals choose a life of crime even after being given multiple opportunities to change their life for the better. In such cases, the Kalamazoo Department of Public Safety partners with our local, state, and federal law enforcement counterparts, including the U.S. Attorney’s Office for the Western District of Michigan and the U.S. Drug Enforcement Administration to hold individuals accountable to the fullest extent of the law,” added Captain Diaz.
This case was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco and Firearms, and the Kalamazoo Valley Enforcement Team, a narcotics task force operating in Kalamazoo County. The case was prosecuted by Assistant U.S. Attorney Joel S. Fauson.
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Lansing Area Methamphetamine Traffickers SentencedRead the Press Release
Joseph and Lisa Burgess, the last of seven defendants, will each spend hundreds of months behind bars and forfeited their house as well as over $20K in seized cash.
LANSING, MI – United States Attorney Andrew Birge announced that Joseph and Lisa Burgess of Dewitt, Michigan were sentenced today for their role in a conspiracy to distribute crystal methamphetamine. They were the last of the seven defendants charged in the conspiracy to receive their sentences.
The Hon. Hala Jarbou, the U.S. District Court Judge in Lansing, sentenced Lisa Burgess, age 48, to 235 months in prison (over 19 years) for conspiring to distribute and possess with the intent to distribute 50 grams or more of methamphetamine. Joseph Burgess, also known as “Diamond,” age 50, was sentenced to 352 months in prison (over 29 years) for conspiracy to distribute 50 grams or more of methamphetamine, possession with the intent to distribute 50 grams or more of methamphetamine, and possession of firearms in furtherance of drug trafficking. Each defendant will have to pay fines and special assessments and will spend three years on supervised release when released from the Bureau of Prisons. Their house and over $20,000 in cash were also forfeited.
In January 2020, law enforcement officers from the Michigan State Police Department’s Tri-County Metro Narcotics Team and the Drug Enforcement Administration executed a search warrant at the Burgess residence and seized over three pounds of crystal methamphetamine, 15 handguns, 33 long guns, over $20,000, and drug trafficking paraphernalia (rubber gloves, digital scales, and baggies). The investigation showed that Joseph and Lisa Burgess and their codefendants trafficked crystal meth in the Lansing area and the Upper Peninsula.
“Crystal methamphetamine continues to have a devastating impact in our communities in both the Upper and Lower Peninsulas,” said U.S. Attorney Andrew Birge. “My office treats drug trafficking very seriously, particularly when the danger is increased by offenders possessing firearms.”
“These seven individuals were part of a drug trafficking organization that pushed poisonous methamphetamine into mid-Michigan and the upper peninsula in exchange for money,” added Acting Special Agent in Charge Kent Kleinschmidt of the DEA Detroit Field Division. “DEA, and our law enforcement partners, will employ every resource at our disposal to bring drug pushers to justice and stop the flow of illegal drugs into our communities.”
“Tri-County Metro Narcotics appreciates the collaborative efforts of our local and federal partners,” said Michigan State Police Tri-County Metro Narcotics Team Commander Detective Lieutenant Bill Eberhart. “This investigation and subsequent sentencing demonstrates our continuing commitment to pursue drug dealers who are inflicting harm upon the communities and citizens we serve. Tri-County Metro Narcotics will continue to work vigorously to disrupt and dismantle those illicit organizations and endeavor to keep our citizens and communities safe.”
The Burgesses were the last members of the conspiracy to be sentenced. The other defendants received the following sentences:
- Garylee Dexter, a/k/a “Flip”—108 months in prison for conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine;
- Ryan Timko—172 months in prison for conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine;
- Jeremy Brusso—132 months in prison for conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine;
- Nicholas Cornish—120 months in prison for conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine; and
- Kendra Stidolph—45 months in prison for possession with intent to distribute 50 grams or more of methamphetamine.
The Michigan State Police Tri-County Metro Narcotics Team and Drug Enforcement Administration investigated the case. Assistant U.S. Attorneys Alexis Sanford, Ted Greeley, and Erin Lane prosecuted the case.
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Ten Defendants Charged in Upper Peninsula-Based Conspiracy to Distribute and Possess with Intent to Distribute MethamphetamineRead the Press Release
MARQUETTE – A federal grand jury in Grand Rapids returned an indictment charging eight individuals from the Upper Peninsula and two individuals from the Detroit area with a conspiracy to distribute and possess with intent to distribute methamphetamine, in violation of 21 U.S.C. § 846, 841(a)(1). Some of the defendants are also charged with distribution of methamphetamine, distribution of fentanyl, and possession with intent to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1). For more information, a copy of the indictment is available on the public docket. United States v. Smith, et al., No. 2:22-cr-01, ECF No. 13 (W.D. Mich.).
The Drug Enforcement Administration; Upper Peninsula Substance Enforcement Team; the Bureau of Indian Affairs; Bureau of Alcohol, Tobacco, Firearms, and Explosives; FBI – Safe Trails Task Force; Michigan State Police; Delta County Sheriff’s Office; Hannahville Tribal Police Department; Keweenaw Bay Indian Community Tribal Police; and Troy Police Department investigated the case. On February 1, 2022, investigators arrested six of the defendants. Four defendants were already in custody.
The individuals charged in the indictment are listed below:
Name
Residence
Age
Tyler Allen Smith, a/k/a “Ty Ty,” a/k/a “Ty”
Inkster, MI
31
Jason Earl Arnold
Detroit, MI
27
Jill Elizabeth Roberts
L’Anse Indian Reservation
34
John Paul Decota, Jr., a/k/a “Bub”
Hannahville Indian Reservation
32
Elizabeth Jean Decota, a/k/a “Biz”
Escanaba, MI
34
Clifford Keith Durant, Jr.
L’Anse Indian Reservation
29
Shanna Marie Decota
L’Anse Indian Reservation
31
Peggy Sue Swartz
L’Anse Indian Reservation
51
Allyson Marie Denomie
L’Anse Indian Reservation
28
Alexander Brandon Sagataw
Hannahville Indian Reservation
38
Five of the defendants made their initial court appearance on Wednesday, February 2, 2022 before U.S. Magistrate Judge Maarten Vermaat; one made his initial court appearance before U.S. Magistrate Judge Sally J. Berens. The other defendants will have their initial court appearances in the near future. If convicted, Smith faces a mandatory minimum sentence of 15 years and up to life in prison, Arnold and Roberts face a mandatory minimum of 10 years and up to life in prison, Sagataw faces a maximum sentence of up to 30 years, and the other defendants face maximum sentences of up to 20 years. A federal district court judge would impose any sentence only if the defendant pleads guilty or is found guilty by a unanimous jury and would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Justice Department Secures Settlement with Meijer, Inc. to Make Its Online Covid-19 Vaccine Portal Accessible to Individuals with DisabilitiesRead the Press Release
GRAND RAPIDS, MICHIGAN — The United States Attorney’s Office for the Western District of Michigan and the Justice Department announced an Americans with Disabilities Act (ADA) settlement agreement with Meijer, Inc. (Meijer) to eliminate barriers preventing people with certain disabilities from getting information about COVID-19 vaccinations and booking vaccination appointments online. Meijer is a privately owned regional supermarket chain with stores located throughout Michigan, Ohio, Indiana, Illinois, Kentucky, and Wisconsin. Meijer is headquartered in Grand Rapids, Michigan.
Meijer’s COVID-19 Vaccine Registration Portal, currently located at https://clinic.meijer.com, was not accessible to people with certain disabilities, including those who use screen reader software or have a hard time using a mouse. For instance, people who use the “Tab” key instead of a mouse to navigate websites could not proceed past the very first step of the vaccine registration process, because they could not select the button stating “click here to schedule an appointment.” The Vaccine Registration Portal also did not always tell people who use screen readers what information they were supposed to put on scheduling forms, including their first and last names, birthdate, and zip code.
Title III of the ADA requires public accommodations, like grocery stores, to provide individuals with disabilities with full and equal enjoyment of goods and services, such as vaccines. The ADA also requires public accommodations to ensure effective communication with people with disabilities, including through use of auxiliary aids and services like accessible technology.
“Our office is dedicated to upholding the civil rights of all people in the United States, including those with disabilities. Those rights include full and equal access to health information and medical care, such as COVID-19 vaccinations,” said U.S. Attorney Birge. “This agreement reflects our ongoing commitment to enforcing the ADA, protecting the rights of individuals with disabilities, and supporting our nation’s fight against the COVID-19 pandemic.”
Under the terms of this agreement, Meijer will conform web content about the COVID-19 vaccine, including the forms for scheduling an appointment to get the vaccine, to the Web Content Accessibility Guidelines (WCAG), Version 2.1, Level AA. WCAG is a set of voluntary industry guidelines for making information on a website accessible to users with disabilities. Meijer also must regularly test the pages of its website that include vaccine scheduling and information about the COVID-19 vaccine, and quickly fix any problems that keep people with disabilities from being able to use these pages.
“As our nation continues to respond to the COVID-19 pandemic, the Justice Department will not allow members of the disability community to be left behind,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Individuals with disabilities are an important part of the fabric of our country, and it is critical that they have equal access to potentially life-saving vaccines.”
The ADA authorizes the U.S. Department of Justice and the U.S. Attorney’s Office to undertake investigations and periodic reviews of covered establishments. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/. Anyone in the Western District of Michigan may also report civil rights violations directly to the U.S. Attorney’s Office for the Western District of Michigan by calling 616-808-2195 or emailing [email protected].
This matter was handled jointly by Assistant United States Attorney for the Western District of Michigan Laura A. Babinsky, and attorneys for the Disability Rights Section of the Department’s Civil Rights Division Anne Langford and Joy Welan.
Please click this text to view the Meijer Settlement Agreement 2.2.22 (executed) document.
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Former West Michigan Doctor Charged with Health Care Fraud and False StatementsRead the Press Release
Dr. Daniel Castro Formerly Practiced at Bronson Hospital in Battle Creek, Michigan
GRAND RAPIDS, MICHIGAN – A federal grand jury in Grand Rapids returned an indictment charging a Texas doctor with defrauding health care insurers and creating false medical records, U.S. Attorney Andrew Birge announced today.
According to court documents, Dr. Daniel Castro, age 70, currently of McKinney, Texas, was employed by Bronson Hospital in Battle Creek from February 2015 until May 2017, where he practiced as an otolaryngologist (an ear, nose, and throat physician). The indictment alleges that Dr. Castro performed functional endoscopic sinus surgeries on patients whose symptoms, history, and computed tomography scans (CT scans) did not support the medical necessity of such procedures. Additionally, the indictment alleges that Dr. Castro routinely billed for removing diseased tissue from inside his patient’s sinuses when diseased tissue did not truly exist and billed for performing surgery on sinus cavities that did not exist, to increase his compensation. The grand jury also alleged that Dr. Castro routinely billed for performing complex neck dissection surgeries designed to treat confirmed cancer of the head and neck when his patients did not have cancer and he actually performed much simpler surgical neck procedures not associated with cancer treatment. Finally, the indictment alleges that Dr. Castro created false entries in his office consultation notes and operative reports in order to justify the medical necessity of his sinus surgeries or to make it appear as if he had actually performed the higher paying neck dissections or sinus procedures that he did not actually perform.
Castro is charged with 34 counts of health care fraud and 8 counts of making false statements relating to health care matters. The defendant’s initial court appearance is scheduled for Tuesday, February 22, 2022 before U.S. Magistrate Judge Sally J. Berens of the U.S. District Court for the Western District of Michigan. If convicted, he faces up to 10 years in prison for each of the health care fraud charges and up to 5 years in prison on each of the false statement charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This matter is being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ron Stella is prosecuting the case.
An indictment is only an allegation of criminal conduct and not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Please click this text to view the Castro Filed Indictment document.
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Sturgis Nurse Charged with Tampering with Consumer ProductsRead the Press Release
GRAND RAPIDS, MICHIGAN - Alison Marshall, 46, of Sturgis, Michigan, has been charged by a federal grand jury with tampering with a consumer product, United States Attorney Andrew Birge announced today. Special Agent in Charge Lynda Burdelik, from the Food and Drug Administration’s (FDA) Office of Criminal Investigations, joined the announcement.
According to the indictment, while working as a registered nurse in the interventional radiology unit of a hospital in July and August of 2020, Marshall tampered with bottles of fentanyl by removing the fentanyl from the vials with a syringe and replacing it with another liquid, knowing that the diluted fentanyl was to be dispensed to patients. The indictment does not include other details of the offense.
The tampering offense is punishable by up to ten years in prison. If Marshall is convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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.
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Attorney General Merrick B. Garland Announces Justice Department Strategy to Combat Human TraffickingRead the Press Release
Local efforts to strengthen engagement and coordination mirror the national strategy
February 1, 2022 -- U.S. Attorney General Merrick B. Garland today released the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act.
Rooted in the foundational pillars and priorities of the interagency National Action Plan to Combat Human Trafficking, which President Biden released on Dec. 3, 2021, the Justice Department's National Strategy is expansive in scope. It aims to enhance the department's capacity to prevent human trafficking; to prosecute human trafficking cases; and to support and protect human trafficking victims and survivors.
“Human trafficking is an insidious crime,” said Attorney General Garland. “Traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm. The Justice Department’s new National Strategy to Combat Human Trafficking will bring the full force of the Department to this fight.”
Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:
- Strengthen engagement, coordination and joint efforts to combat human trafficking by prosecutors in all 94 U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.
- Establish federally-funded, locally-led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.
- Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.
- Enhance initiatives to reduce vulnerability of American Indians and Alaska Natives to violent crime, including human trafficking, and to locate missing children.
- Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.
- Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.
- Expand dissemination of federal human trafficking training, guidance and expertise.
- Advance innovative demand-reduction strategies.
The Department’s strategy will be implemented under the direction of the National Human Trafficking Coordinator designated by the Attorney General in accordance with the Abolish Human Trafficking Act of 2017.
U.S. Attorney Andrew Birge advised that human trafficking is everywhere, including in the Western District of Michigan. “My office is committed not only to prosecuting this horrendous crime, but also collaborating with and supporting the efforts of various community organizations who provide support to victims and bring awareness to this issue,” said Birge.
Collaborative projects and local partners that correspond with the national strategy of strengthening engagement and coordination include:
- In December 2021, the Department of Justice provided the Kent County Sheriff and Solutions to End Exploitation (SEE) Human Trafficking Task Force $750,000 in grant funds to identify and respond to human trafficking in Kent County. The task force will consist of members from local, state, and federal law enforcement, the U.S. Attorney’s Office, the Kent County Prosecutor’s Office, and service providers who will address victim needs.
- Last week, the Michigan Abolitionist Project, SEE and The Joseph Project hosted a Statewide Human Trafficking Summit attended by members of the U.S. Attorney’s Office. The summit brought together cross-functional teams with different skill sets and resource offerings. This virtual summit allowed law enforcement, civilians, and human trafficking victims to collaborate on how to address specific human trafficking issues impacting the State of Michigan.
- The Upper Peninsula Human Trafficking Task Force provides both training and outreach programing, recently co-sponsoring a viewing of and panel discussion about the Michigan film “Ring of Silence,” a true account of a young girl being sex trafficked. The U.P. task force is a collaborative effort among members of the U.S. Attorney’s Office, Homeland Security Investigations, state prosecutors, state and local law enforcement agencies, tribal communities, and social service providers all in the U.P.
- The Wyoming Police Department now houses a Crisis Aid International office which is staffed with a full-time advocate available 24/7 to assist trafficking victims and their families in obtaining necessary resources such as therapy and housing. In December 2021, representatives from the U.S Attorney’s Office, federal agencies, and local law enforcement gathered to learn about Crisis Aid International’s Children’s Anti-Exploitation Partnership Program, a new resource in the Western District of Michigan.
U.S. Attorney Birge encourages the community to be aware of indicators of trafficking and report suspicious activity.
Indicators of human trafficking can include the following:
- An individual with an inability to produce identification or other documents because they are in a third party’s possession and control;
- An individual who is unable to freely contact friends or family;
- An individual who is coached on what to say to law enforcement or other authority figures;
- An individual who lacks knowledge or awareness as to what happens to the money they earn/are supposed to earn;
- An individual who lacks knowledge or awareness as to how much money they earn;
- An individual who is unable move or travel freely;
- Garnishment of a salary to pay off a fee imposed by their employer;
- Juveniles engaged in commercial sex; and
- Frequent visits to the emergency department.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
To read the National Strategy to Combat Human Trafficking click here.
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Detroit Man Sentenced to 30 Years for Drug Trafficking in the Lansing AreaRead the Press Release
GRAND RAPIDS, MICHIGAN —Kenneth Pointer, a/k/a “Chopper” of Detroit, Michigan, was sentenced to 30 years’ imprisonment, followed by 10 years’ supervised release, by U.S. District Judge Hala Y. Jarbou on January 26, 2022, announced U.S. Attorney Andrew B. Birge. Because Mr. Pointer was found guilty of possessing and distributing a large quantity of drugs and because he had been previously convicted of multiple controlled substance offenses, Pointer was subject to higher penalties. Due to his status as a career offender, Mr. Pointer faced a United States Sentencing Guidelines range of 30 years to life imprisonment.
Between April 2017 and November 2019, law enforcement agencies investigated Mr. Pointer’s ongoing drug trafficking enterprise. Mr. Pointer trafficked drugs from Detroit to Lansing where he divided and packaged them for sale. Mr. Pointer supplied users and other dealers in the Lansing area. During the investigation, law enforcement seized more than 4.5 kilograms of cocaine, crack cocaine, and fentanyl from Mr. Pointer and residences used by Mr. Pointer in the Lansing area. At sentencing, Judge Jarbou found that Mr. Pointer operated a drug house to facilitate his drug trafficking and that Mr. Pointer’s criminal history showed that he had made a career out of drug trafficking activities.
“My office is committed to supporting local partner law enforcement agencies to stop the trafficking of illegal drugs. Those like Mr. Pointer, who make a career of dealing dangerous drugs, such as fentanyl and cocaine, will get our attention and face a very long time in prison, away from the communities they endanger,” said U.S. Attorney Birge.
"This investigation, and the subsequent sentencing, demonstrates the commitment of DEA and partner agencies to pursue and disrupt drug dealers who are inflicting harm upon communities with dangerous and illegal narcotics,” said DEA Acting Special Agent in Charge Kent Kleinschmidt.
Michigan State Police Tri-County Metro Narcotics Team Commander Detective Lieutenant Bill Eberhardt said, “We are grateful to the DEA and the U.S. Attorney’s Office for their diligence on this investigation. We support the judge’s sentencing decision and believe it recognizes the significant negative impact the defendant has had on the greater Lansing area. Tri-County Metro Narcotics will continue to work with our local and federal partners to investigate drug crimes in the Tri-County area, endeavoring to keep our citizens and communities safe.”
“The Lansing Police Department appreciates the collaborative efforts of local, state, and federal resources, when it comes to criminal investigations. Prosecutions and sentences such as this are an excellent example of the quality of work and the impact these efforts can produce,” said Lansing Police Department Chief Ellery Sosebee.
This case was prosecuted by Assistant U.S. Attorneys Jonathan C. Roth, and Kristin M. Pinkston and investigated by the Drug Enforcement Agency, the Lansing Police Department, and the Michigan State Police Department Tri-County Metro Narcotics Team.
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Three Men Plead Guilty to Defrauding AmazonRead the Press Release
Defendants Sold Textbooks They Rented Through Amazon’s Textbook Rental Program
GRAND RAPIDS – U.S. Attorney Andrew B. Birge announced today that Paul Larson of Kalamazoo, and Gregory Gleesing of Portage, pled guilty to mail fraud in United States District Court in Lansing, Michigan. Lovedeep Singh Dhanoa, also of Portage, previously pled guilty to mail fraud related to the same fraudulent scheme.
According to court documents, Paul Larson, age 32, Gregory Gleesing, age 43, and Lovedeep Singh Dhanoa, age 25, allegedly participated with Geoffrey Mark Talsma, age 36, also of Kalamazoo, in a scheme to defraud Amazon’s textbook rental program. Larson, Gleesing and Dhanoa admitted through their guilty pleas that from approximately September 2016 to October 2019, one or more of them assisted Talsma in renting textbooks from Amazon through the internet. According to the plea agreements, Talsma taught them how to create numerous Amazon accounts using fake names, multiple street addresses, and multiple email accounts to circumvent Amazon’s limit of 15 textbook rentals per customer. They admitted assisting Talsma in obtaining the textbooks at a rental price that was a fraction of their true value and selling the textbooks at a profit through area bookstores and over the internet, all without ever paying the agreed upon buyout price for the books at the end of the rental period.
Larson is scheduled to be sentenced on Tuesday, June 21, 2022; Gleesing on Wednesday, June 1, 2022; and Dhanoa on Tuesday, May 24, 2022. All three face a maximum of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. They will also be ordered to pay restitution to Amazon.
The charges against Talsma are scheduled for trial beginning on April 5, 2022, in United States District Court in Lansing, Michigan. The charges against him are mere allegations and he remains innocent until and unless proven guilty at trial.
The Federal Bureau of Investigation and U.S. Postal Inspection Service are investigating the case. Amazon referred the matter to law enforcement and has supported the investigation.
Assistant U.S. Attorney Ron Stella is prosecuting the case.
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Grand Rapids Man Pleads Guilty to Shooting at A Federal OfficerRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew B. Birge announced today that Jaquari Trotter of Grand Rapids, Michigan pled guilty to shooting at a member of the United States Marshals Service Fugitive Task Force. Gregory Rogers, who drove the getaway car following the shooting, previously pled guilty to aiding and abetting the assault.
On February 4, 2020, Trotter and Rogers were hanging out with friends outside a residence on Sherman Street SE in Grand Rapids when they saw a member of the task force drive by in an unmarked vehicle. When the agent drove by a second time, Trotter and Rogers pulled out in front of the agent’s unmarked SUV and sped around a neighboring corner. Trotter then had Rogers pull over sharply to the right side of the road, jumped out of the passenger door, pulled a loaded 9mm handgun from his waistband and fired 11 shots at the agent’s vehicle before jumping back into the car and speeding away with Rogers. Trotter is a previously convicted felon and it was illegal for him to possess a firearm in the first place.
The two men face up to 20 years in prison and a fine of up to $250,000. They will also be ordered to pay restitution for the damage their crimes caused. Both men are scheduled to be sentenced by United States District Judge Hala Y. Jarbou on May 10, 2022 in Lansing.
“This shooting was a senseless act of violence that could have cost a law enforcement officer his life,” commented U.S. Attorney Andrew Byerly Birge. “Trotter and Rogers acted intentionally and without regard for the damage their actions could cause. With these pleas, they have taken the first step in accepting responsibility for their crime.”
Kent County Prosecutor Chris Becker, whose office assisted on the case, commented that “We are tremendously pleased with the resolution in both these cases; we especially appreciate the way in which our office, and the Office of US Attorney, were able to work closely together to bring these individuals to justice in such a serious case.”
“Law enforcement officers risk their personal safety every day to protect the public, enforce the law, and keep our communities safe from violence,” said Josh P. Hauxhurst, Acting Special Agent in Charge of the FBI in Michigan. “Criminals who choose to target officers can expect that every resource of the FBI will be used to ensure they are brought to justice.”
“We take any attempt to harm our Task Force Officers or Deputies while engaged in the performance of their official duties extremely seriously,” declared Joseph Guzman, Acting Chief Deputy of the U.S. Marshals Service. “We are thankful to see those responsible for this shooting held accountable and thank the U.S. Attorney’s Office, Kent County Prosecutor’s Office, the FBI, and GRPD for their efforts in prosecuting everyone who was involved in this reckless act of violence.”
This case was investigated by the Federal Bureau of Investigation and the Grand Rapids Police Department, with additional assistance provided by the United States Marshals Service and the Michigan State Police. This case was prosecuted by Assistant U.S. Attorney Stephanie M. Carowan and Special Assistant United States Attorney Blair Lachman, who also serves as a Deputy Prosecutor in the Kent County Prosecutor’s Office.
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Grand Rapids Man Guilty of Fatal Distribution of Heroin and Fentanyl Causing Two DeathsRead the Press Release
KALAMAZOO, MICHIGAN – On January 13, 2022, a jury found Mustafa Deville Reynolds, 23, of Grand Rapids, guilty of distributing heroin and fentanyl that caused the deaths of two men in Grand Rapids, announced U.S. Attorney Andrew Birge. The two victims were 25 and 27 years old at the time of their deaths.
The evidence at trial showed that the victims were found by their roommates, unresponsive, in the early morning hours of August 21, 2019 – just hours apart from one another. After being transported to the hospital, both men subsequently died from fentanyl and heroin toxicity. Detectives with the Grand Rapids Police Department (GRPD) found cell phone evidence that showed in the evening of August 20, 2019, Reynolds sold the fatal drugs directly to one of the victims, and that Reynolds sold the fatal drugs through a middleman to the other victim. One week later, on August 27, 2019, Reynolds sold a mixture of heroin and fentanyl to an undercover GRPD detective. During the sale, Reynolds pointed to the drugs and told the detective, “Be careful with that one. Don’t do too much.” The jury also convicted Reynolds for the sale to the undercover detective. A forensic chemist with the Michigan State Police testified at trial that one of the baggies of “heroin” that Reynolds sold to the undercover officer was mostly fentanyl, which is a synthetic opioid 100 times more potent than morphine.
“Fentanyl is extremely potent and the deadliest of drugs found on the street. Individuals who order heroin are increasingly receiving fentanyl, a synthetic opioid that is cheaper and easier to produce. Unfortunately, users who ingest fentanyl often do so with deadly consequences,” said U.S. Attorney Birge. “Drug dealers in West Michigan are on notice: if you sell heroin and fentanyl, your product not only causes misery, it causes death. Law enforcement is committed to investigating and prosecuting these cases to ensure that dealers who sell drugs resulting in death are brought to justice,” added U.S. Attorney Birge.
“This case tragically shows the dangers of fentanyl in communities throughout Michigan,” said Kent R. Kleinschmidt, Acting Special Agent in Charge of the U.S. Drug Enforcement Administration’s Detroit Field Division. “While we mourn the lives of those lost, the U.S. Drug Enforcement Administration and our law enforcement partners will work tirelessly to protect our communities from the dangers of illicit drug trafficking and bring justice to those who seek to profit at the expense of human life.”
“The opioid epidemic in Michigan has claimed far too many lives. The Grand Rapids Police Department is committed to seeking out those who sell heroin and fentanyl in the West Michigan area. We are thankful for the partnership of the Drug Enforcement Administration and the United States Attorney’s Office in helping make Grand Rapids a safer community,” said Grand Rapids Police Department Lieutenant Jonathan Wu.
Reynolds will be sentenced by U.S. District Judge Paul L. Maloney this spring. He faces a statutory mandatory minimum sentence of 20 years in prison and up to life in prison for each distribution of heroin and fentanyl that resulted in death, and up to 20 years in prison for selling heroin and fentanyl to the undercover detective. The Grand Rapids Police Department Vice Unit and the Drug Enforcement Administration investigated this case. The case is being prosecuted by Assistant United States Attorneys Dan McGraw and Alexis Sanford.
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Menominee Man Sentenced to Prison for Theft of Government Funds After He Obtained over $297,000 in Benefits to Which He Was Not EntitledRead the Press Release
MARQUETTE – Edward Douglas Cornman, 49, of Menominee, Michigan, was sentenced to 18 months in prison today for theft of government funds. He was also ordered to pay $297,768.31 in restitution. Chief U.S. District Judge Robert J. Jonker imposed the sentence.
Cornman pleaded guilty in June 2021 to lying about his work history and assets to obtain Medicaid benefits. From 2010 to 2019, Cornman failed to disclose his assets and work activities to the Social Security Administration. As a result, he improperly received Medicaid, Supplemental Security Income, and other benefits. Over the approximately ten-year period, Cornman received $297,768.31 in benefits from various agencies he was not entitled to receive.
U.S. Attorney Andrew Birge said, “Medicaid and Supplemental Security Income are programs aimed at the neediest in our society. Protecting those programs from abuse is one of our most important missions. My office will continue to vigorously prosecute those who abuse federally funded programs and benefits.”
“Mr. Cornman egregiously misused the Federal and State benefits that many people solely rely on to meet their essential needs. He deliberately concealed his property, resources, and earnings from working at his own construction company to fraudulently receive Supplemental Security Income, as well as Medicaid and other benefits,” said Gail S. Ennis Inspector General for the Social Security Administration. “I thank the Michigan State Department of Health and Human Services Office of the Inspector General and local law enforcement for their efforts in this investigation and the U.S. Attorney’s Office for prosecuting this case.”
The Social Security Administration, U.S. Department of Education, and Michigan Department of Health and Human Services investigated the case.
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Lansing-Based Research and Development Firm Pays $500,000 to Resolve Federal Contract Fraud AllegationsRead the Press Release
Metna Co. And Its President Voluntarily Agree To Two-Year Ban From Federal Contracting
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that Metna Co., a Lansing-based research and development firm, paid $500,000 to resolve allegations that the company violated the federal False Claims Act by concealing its use of underpaid foreign graduate students—students, the government alleged, who were ineligible to work at Metna under their visa restrictions—to obtain Small Business Innovation Research (“SBIR”) contracts from the United States Army. Metna and its president also voluntarily agreed to two-year, government-wide exclusions from federal contracting and financial assistance.
The SBIR program, administered through eleven participating agencies, encourages domestic small businesses to engage in federally-sponsored research and development with the potential for commercialization. By including qualified small businesses in the nation’s research and development efforts, the SBIR program stimulates high-tech innovation and promotes entrepreneurialism to meet the government’s needs.
The Army’s SBIR contract proposal process requires applicants to declare any foreign nationals working on the project. Foreign national disclosures facilitate the Army’s review of foreign nationals’ visa work authorizations, their compliance with visa work restrictions, and any potential risks associated with providing access to innovative research and emerging technologies funded by the federal government.
This case involved F-1 student visas, which allow foreign nationals to enroll as full-time students at accredited academic institutions in the United States. F-1 students may engage in certain types of off-campus employment after their first academic year if, among other things, the sponsoring institution approves and the proposed employment is consistent with specific work-hour limitations during the academic year.
The government alleged that Metna falsely certified that it was not using foreign nationals in its SBIR proposals when, in fact, the company used foreign graduate students to work on the Army contracts. The government alleged that the graduate students were not eligible to work at Metna because, among other things, Metna provided false information to Michigan State University—including about the number of hours the students would work at Metna during the academic year—to secure the necessary F-1 visa work authorizations. Metna, the government alleged, also paid the graduate students substantially less than the hourly labor rate that Metna quoted to the Army in its contract budget proposals. The government also claimed that Metna did not use a number of third-party consultants that Metna included and budgeted for as part of its proposed project teams. Finally, the government alleged that Metna’s designated principal investigator (the individual responsible for the preparation, conduct, and administration of the Army contracts) did not actually serve in that role during performance of the projects.
U.S. Attorney Birge said, “The SBIR program involves intense competition for a limited pool of funds. Exploiting foreign students and then making misrepresentations to outcompete deserving and eligible small businesses are just the sort of allegations we should all care about. This settlement reflects my office’s commitment to ensuring that taxpayer dollars spent through this critical economic program go to deserving and eligible small businesses.”
“This settlement demonstrates the Army’s dedication to protecting the interest of the SBIR program and holding companies accountable when the program is exploited. The U.S. Army Criminal Investigation Command will continue to investigate allegations of fraud which threaten the small business procurement program,” said Special Agent in Charge Ray A. Rayos, Southwest Fraud Field Office of the Army Criminal Investigation Command’s Major Procurement Fraud Unit.
“Protecting research and development programs funded by the Department of Defense is a priority for the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “The settlement agreement with Metna is the result of a joint investigative effort to protect Small Business Innovative Research contracts from fraud and abuse, and this case demonstrates the DCIS’s ongoing commitment to work with the U.S. Attorney’s Office for the Western District of Michigan and its law enforcement partners to investigate and prosecute companies that defraud the SBIR programs.”
This case was investigated by multiple agencies, including the U.S. Army Criminal Investigation Command, the U.S. Department of Energy, Office of Inspector General, the U.S. Department of Transportation, Office of Inspector General, the Defense Criminal Investigative Service, the Defense Contract Audit Agency, the U.S. Environmental Protection Agency, Office of Inspector General, Homeland Security Investigations, and the U.S. Attorney’s Office for the Western District of Michigan.
Assistant U.S. Attorney Adam B. Townshend represented the United States.
The claims resolved by the civil settlement agreement are allegations only, and there has been no determination of liability.
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U.S. Attorney Birge Announces Project Safe Neighborhoods Funding to Promote Violence Prevention and Community Policing in West MichiganRead the Press Release
Local Law Enforcement and Communities Work Together to Reduce Violent Crime and Make Neighborhoods Safer
GRAND RAPIDS, MICHIGAN – United States Attorney Andrew Birge announced today that the Department of Justice has allocated $190,995 to the Western District of Michigan Project Safe Neighborhoods (PSN) grant for the fiscal year 2021. This award is one of 88 issued around the country.
“This latest Project Safe Neighborhoods grant is critical to addressing the violent crime threatening cities and towns all across our country,” said Deputy Attorney General Lisa O. Monaco. “Ensuring the safety of all Americans is the highest priority for the Department of Justice, but when it comes to violent crime, there is not a one-size-fits-all solution. We have to work closely with local public safety agencies as well as community organizations to craft individual strategies unique to each community’s needs. Programs like Project Safe Neighborhoods and the funding it provides allow us to do just that.”
U.S. Attorney Birge explained, the “purpose of this grant funding is to reduce and prevent gun crime by supporting community-based prevention programs and focused, evidence-based law enforcement efforts in areas identified as the most at-risk.”
A committee of local prosecutors and law enforcement chiefs from Battle Creek, Benton Harbor, Kalamazoo, Grand Rapids, Lansing, Muskegon, and Muskegon Heights chooses how to allocate the funds. The committee has previously focused on funding programs that foster cooperation between law enforcement officials, community members, and non-governmental organizations to prevent violence, strengthen relationships between law enforcement officials and the communities they serve, and provide alternative opportunities and activities for those most at risk of becoming involved in violent crime. Last year the PSN grant funded a mentoring and after-school tutoring program with the Boys & Girls Club in Benton Harbor; a faith-based mobile outreach organization operating in areas that suffer from the highest rates of violence and poverty in Lansing; and a series of basketball games in which Muskegon Police Department members played alongside community members.
The United States Attorney’s Office for the Western District of Michigan is committed to supporting local law enforcement, community organizations, and residents to reduce violent crime. Senior Vice President Annette Chapman, of the Battle Creek Community Foundation, is the fiscal agent for the Western District of Michigan’s Project Safe Neighborhoods grant. Her dedication to the grant’s strategy, management, and community stakeholders is essential to the program’s success.
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For more information about the PSN grant request for proposals or an application, please contact Annette Chapman, PSN Fiscal Agent and Senior Vice President at the Battle Creek Community Foundation, at (269) 962-2181 or [email protected]. For other federal grant opportunities, please see www.grants.gov.
Grand Rapids Dentist Surrenders DEA Registration and Agrees to Pay $200,000 for Allegedly Forging and Issuing Illegitimate Narcotic PrescriptionsRead the Press Release
GRAND RAPIDS – Joseph H. Kirkwood, D.D.S., a Grand Rapids dentist, has agreed to pay $200,000 to resolve allegations that he violated the Controlled Substances Act by forging and issuing illegitimate prescriptions for narcotics. As part of the settlement, Dr. Kirkwood also surrendered his Drug Enforcement Administration (“DEA”) registration that enabled him to write prescriptions for controlled substances, and he agreed not to reapply for a new registration for four years.
This settlement resolves allegations that Dr. Kirkwood wrote illegitimate prescriptions for controlled substances for other individuals and then collected the drugs for his own personal use. It also resolves allegations that Dr. Kirkwood forged controlled substance prescriptions using the signatures and DEA registration numbers of two other dentists, also for the purpose of collecting these drugs for himself.
“This resolution demonstrates that my office takes seriously all allegations that a healthcare provider evaded safeguards in the law by forging prescriptions and issuing illegitimate prescriptions, including when the allegation is that the drugs were for their own use,” said U.S. Attorney Andrew B. Birge.
“Medical and dental professionals must not abuse the privilege of prescribing controlled substances,” said DEA Special Agent in Charge Keith Martin, Detroit Field Division. “DEA will continue to work with all levels of law enforcement to investigate allegations of unlawful prescribing.”
This case was investigated by the DEA and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Andrew J. Hull represented the United States.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Justice Department Announces $139 Million for Law Enforcement Hiring to Advance Community PolicingRead the Press Release
$1.25 Million Awarded to Law Enforcement Agencies in the Western District of Michigan
WASHINGTON – The Department of Justice today announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. In the Western District of Michigan two cities were awarded funding totaling $1,250,0000.
“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” said Attorney General Merrick B. Garland. “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.”
The following cities in the Western District of Michigan received awards:
- City of Battle Creek – $500,000
- City of Wyoming – $750,000
“These awards are welcome news for our law enforcement partners in Battle Creek and Wyoming,” said Andrew Birge, United States Attorney for the Western District of Michigan. “The resources come at an important time. The direct funding will help them secure the safety and well-being of their communities in a way that fosters trust in law enforcement.”
CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or supporting police-based responses to persons in crisis. The complete list of awards can be found here.
Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537 million for CHP, an increase of $300 million.
To learn more about CHP, please visit https://cops.usdoj.gov/chp-award. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.
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Kent County Tax Preparer Sentenced to PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – Gonzalo Ramon Rodriguez, 59, of Grand Rapids, Michigan, was sentenced to 18 months in federal prison, U.S. Attorney Andrew Birge announced today. Rodriguez pleaded guilty to aiding and assisting in the preparation of false and fraudulent tax returns. In his plea agreement, Rodriguez admitted to improperly using the electronic filing credentials of two other providers, selecting the wrong filing status for his taxpayer clients, reporting business expenses and losses that his taxpayer clients did not incur, and claiming the Earned Income Tax Credit for taxpayer clients who did not otherwise qualify. Rodriguez stole approximately $111,504 from the United States Treasury by filing 41 false tax returns for tax years 2014 through 2018.
United States District Judge Paul L. Maloney directed that Rodriguez pay $111,504 in restitution to the United States and ordered one year of supervised release following the 18-month prison term. In imposing the sentence, Judge Maloney remarked on the need for specific deterrence focused on Rodriguez and general deterrence in preventing similar fraud schemes in the U.S. tax system.
“My office will continue to work closely with IRS criminal investigators to detect and prosecute those who steal from taxpayers by filing fraudulent federal tax returns,” said U.S. Attorney Birge. “I strongly encourage taxpayers to obtain a copy of all tax returns prepared on their behalf to ensure that all of the return information, including income and any dependents that are listed, is correct.”
“This sentencing is a reminder that IRS-Criminal Investigation continues to be relentless in our mission to protect the American tax system and bring criminals who try to abuse our system for personal gain to justice,” said Special Agent in Charge Sarah Kull, Internal Revenue Service – Criminal Investigation, Detroit Field Office.
The case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Clay M. West handled the prosecution.
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Department of Justice Awards over $2 Million in Grants to Improve Public Safety and Serve Crime Victims in Western District of Michigan Tribal CommunitiesRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew Birge announced today that, as part of a national rollout, the Department of Justice awarded $2,438,323 in grants to improve public safety, serve victims of crime and support youth programs in tribal communities in the Western District of Michigan.
“The Justice Department is pleased to make the Coordinated Tribal Assistance Solicitation available to federally recognized tribes, providing a transparent and simple process to apply for grants that best align with their community’s needs,” said Associate Attorney General Vanita Gupta. “This one-step application makes it possible for tribes to access critical resources to help them meet the critical public safety needs of their communities.”
“These awards underscore the Department of Justice’s commitment to help federally recognized Tribes keep their communities safe,” explained U.S. Attorney Birge.
More than four in five of American Indian and Alaska Native adults have experienced some form of violence in their lifetime, according to the Bureau of Justice Statistics. This equates to nearly three million people who have experienced stalking, sexual violence, psychological aggression or physical violence by intimate partners.
“Each year, the department invests millions of dollars to help our Tribal partners confront the challenges of violent crime and domestic abuse in their communities and strengthen their public safety infrastructure,” said Acting Assistant Attorney General Amy L. Solomon for the Justice Department’s Office of Justice Programs. “We are pleased to support the critical work that Tribal nations are undertaking in communities across the country.”
More than $73 million will be awarded under CTAS, a streamlined application which helps tribes apply for tribal-specific grant programs that enhance law enforcement and tribal justice practices, expand victim services and sustain crime prevention and intervention efforts. CTAS grants are administered by OJP ($48 million) and the Office of Community Oriented Policing Services (COPS Office) ($25 million).
“These grants provide vital resources to Tribal law enforcement and their communities by offering equipment and training, along with resources to help officers understand and better serve their communities in areas of domestic abuse, stalking and sex trafficking, and alleviate the detrimental effects that substance abuse and crime have on individuals and their families,” said Acting Director Robert Chapman of the COPS Office
The COPS Office also awarded $400,000 to Western Oregon University to create a structured and tribal-centered innovative approach to enhance the operation of the criminal justice system to address the concerns of the American Indian and Alaska Native communities regarding missing and murdered indigenous people, particularly missing and murdered women and girls.
In addition to CTAS funding, OJP has awarded more than $100 million through the Tribal Victim Services Set-Aside to improve services for crime victims in Tribal communities. OJP’s Office for Victims Crime is supporting tribal grantees with capacity building, training and technical assistance (more than $6.8 million) and an update of the Tribal Resource Tool ($199,999), which maps the availability of victim services in tribal communities. An additional $2.9 million will be awarded under the Children’s Justice Act Partnership to tribes to enhance the handling of cases centered around criminal child abuse and neglect.
The department also funded $6.5 million through OJP’s Office of Sex Offender Sentencing, Monitoring, Apprehending Registering and Tracking to help Tribes comply with federal law on sex offender registration and notification.
The following tribes in the Western District of Michigan received funding:
- Bay Mills Indian Community: $508,245
- Tribal Youth Program (OJJDP)
- Lac Vieux Desert Band of Lake Superior Chippewa Indians: $851,176
- Tribal Justice Systems (BJA)
- Sault Sainte Marie Tribe of Chippewa Indians: $1,078,902
- Public Safety and Community Policing (COPS Office): $628,902
- Children’s Justice Act Partnerships for Indian Communities (OVC): $450,000
Information about FY 2021 grant awards from the Office of Justice Programs can be found online on the OJP Grant Awards Page: https://www.ojp.gov/fy21-ojp-grant-awards. The page will be updated as awards are made.
Information about FY 2021 grant awards from the COPS Office can be found online at the COPS Grant Page: https://cops.usdoj.gov/grants.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
The COPS Office is the component of the U.S. Department of Justice responsible for advancing the practice of community policing by the nation's state, local, territorial and Tribal law enforcement agencies through information and grant resources. More information about the COPS Office can be found at https://cops.usdoj.gov/.
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- Bay Mills Indian Community: $508,245
Ottawa County Man Pleads Guilty to Securities FraudRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Joshua Louis Rupp, 37, previously of West Olive, Michigan, pled guilty to a felony information alleging securities fraud before the Honorable Sally J. Berens, United States Magistrate Judge. As part of the plea agreement, Rupp has agreed to be ordered to pay full restitution to the victims of his crime. Rupp faces up to 25 years in prison when he is sentenced next year by the Honorable Hala Y. Jarbou, United States District Judge. The Court has not yet set a sentencing date.
According to the plea agreement and felony information, from 2015 to 2019, Rupp recruited investors by posing as a licensed broker or trader who worked at one of two different brokerage firms. Rupp told investors that he worked under the supervision of fictitious persons at those firms, one of whom he claimed was his uncle. Rupp also told investors that the principal of the investments could not be lost for various reasons, including his choice of investments, trading strategy, and insurance. Rupp fabricated documents as part of the scheme, including false account statements, a fraudulent securities license, and business documents bearing the logos of the companies for which he claimed to work. Some of the documents stated that he had passed a securities trader qualification examination or that he was registered with the State of Michigan. These claims, and others he made to induce and retain investments, were false. In total, Rupp obtained more than $2.7 million from at least 19 investors, misappropriated more than $500,000 of investors’ funds, and lost most of the remaining funds trading securities.
The U.S. Securities and Exchange Commission filed a civil complaint against Rupp on July 28, 2021, related to some of the conduct charged in the felony information. That case was stayed on the U.S. Attorney’s Office’s motion pending entry of final judgment in the criminal matter.
“Securities trading is a risky business, and for good reason the professionals who do it are licensed and specially trained,” said U.S. Attorney Birge. “This defendant misrepresented his qualifications to trade on behalf of investors in order to obtain money, lied about the performance of their investments, and misappropriated significant portions of the investments for his own personal gain. He has taken the first step toward making amends by accepting responsibility for this serious crime.”
“The defendant fabricated nearly everything about himself as a broker—his license, experience, and business connections—to induce investors to trust him with their money. He then betrayed that trust by taking a portion of the money for his personal use and fabricating false account statements,” said Timothy Waters, Special Agent in Charge of the Federal Bureau of Investigation in Michigan. “Financial crimes are not victimless, and I’d like to thank the Ottawa County Sheriff’s Office for their assistance in providing a measure of justice to the victims impacted by Mr. Rupp’s crimes.”
It is possible that Rupp defrauded victims who have not yet come forward. Any person who believes that he or she is a victim of the charged scheme to defraud, and who has not yet communicated with federal law enforcement, should contact the Victim and Witness Unit of the U.S. Attorney’s Office at (616) 808-2034. Case updates will be available at https://www.justice.gov/usao-wdmi/victim-and-witness-assistance-program/vw-large-cases.
The FBI conducted the investigation, with assistance from the Ottawa County Sheriff’s Office. Assistant U.S. Attorney Justin M. Presant is prosecuting the case.
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Muskegon Man Sentenced to 210 Months in Prison for Drug Trafficking ConspiracyRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew Birge announced that Zachary John Kennedy, a/k/a “Zeus” of Muskegon, Michigan, was sentenced to 210 months’ imprisonment, followed by five years’ supervised release, by U.S. District Judge Paul L. Maloney.
Mr. Kennedy spent years conspiring with others to sell illegal drugs, including heroin, fentanyl, crack cocaine, and methamphetamine throughout west Michigan. During the conspiracy, Kennedy personally sold large quantities of methamphetamine, which included arranging a two-ounce methamphetamine deal in November 2019 and a ten-ounce deal in December 2019.
At sentencing, Judge Maloney found that Kennedy had used firearms in furtherance of his drug trafficking activities and that Kennedy’s actions showed an utter recklessness that needed to be deterred. Judge Maloney characterized Kennedy as “a major threat to the public” who committed a serious crime conspiring to sell drugs, particularly methamphetamine and fentanyl, both of which have had a major impact on the Western District of Michigan.
“This sentence marks a significant step in our efforts to disrupt major drug traffickers in the Muskegon area” commented U.S. Attorney Andrew Birge. “Zachary Kennedy’s actions endangered his community and put innocent citizens at risk. With today’s sentence, Mr. Kennedy has been held accountable for his actions.”
“I’d like to thank our law enforcement partners for their diligence in investigating drug trafficking crimes and protecting the public from violent drug traffickers like Mr. Kennedy,” said Drug Enforcement Administration (DEA) Special Agent in Charge Keith Martin. “The illicit drugs he pushed into west-Michigan are nothing short of poison, and the DEA will continue to work this case, and others like it, to their respective sources and bring everyone involved to justice.”
“WEMET Muskegon is a multi-jurisdictional task force comprised of local, county, state and federal officers. These types of cases would not be possible without the longstanding cooperation between agencies. Criminal drug traffickers do not stop at jurisdictional borders and because of cooperative efforts like the one here, neither do we,” said Detective Lieutenant Andrew Ambrose, commander of the West Michigan Enforcement Team (WEMET), a division of the Michigan State Police and one of the lead investigative agencies on the case.
Kennedy’s sentence is the most recent in a series of sentences handed down for drug traffickers prosecuted as part of coordinated efforts to disrupt drug trafficking in the Muskegon area. The other defendants received the following sentences:
- Brent Wilkerson, a/k/a “Pay”– 144 months in prison for distribution of 50 grams or more of methamphetamine;
- Daris Jefferson, a/k/a “Smoove” – 90 months in prison for possession of heroin and cocaine base (“crack”) with the intent to distribute it and possession of a firearm in furtherance of a drug trafficking crime;
- Alezay Coleman, a/k/a “Zay” – 87 months in prison for possession of methamphetamine, fentanyl, and heroin with the intent to distribute it;
- Malik Jones-Smith, a/k/a “9” – 60 months in prison for distribution of five grams or more of methamphetamine; and
- Carl Johnson, a/k/a “Orangebone,” a/k/a “Bones”– 12 months and 1 day in prison for distribution of cocaine base (“crack”).
This case was part of Operation Interstate Zeus, an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation that began in 2019 and was led by the Drug Enforcement Administration (DEA) and members of Michigan State Police’s West Michigan Enforcement Teams (WEMET). Kennedy is the latest in nearly a dozen defendants sentenced in the investigation, which led to the overall seizure of approximately 339 grams of suspected methamphetamine, 113 grams of fentanyl, 93 grams of heroin, and quantities of cocaine and crack cocaine. Investigators also seized six handguns, jewelry worth approximately $20,000 and more than $20,000 in cash.
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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was prosecuted by Assistant U.S. Attorneys Stephanie M. Carowan and Vito S. Solitro.
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Eight Men from Michigan, Indiana, and Illinois Arrested on Federal Drug Trafficking ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced that law enforcement arrested eight individuals on a complaint alleging they are involved in a transnational and interstate cocaine ring. The investigation centered around Ivan Huerta Hernandez (32) whose alleged drug trafficking operations were based in New Buffalo, Michigan. Through conduits in Mexico, Hernandez was supplied by sources located in Chicago, Illinois and distributed cocaine to dealers in West Michigan and Northern Indiana.
On the morning of November 3, 2021, approximately 90 federal, state, and local law enforcement officers executed arrest warrants and six search warrants in four judicial districts: the Western District of Michigan, the Northern District of Indiana, the Northern District of Illinois, and the Central District of Illinois. Investigators seized approximately 2 kilograms of suspected cocaine. Investigators also seized approximately $99,900 in cash and two firearms.
The men arrested are listed below:
Name
Residence
Age
Ivan Huerta Hernandez
New Buffalo, Michigan
32
Adrian Romero Antunez
Chicago, Illinois
35
Henry Shavar Nichols
Greenville, South Carolina
41
Marcus Jemel Johnson
Benton Harbor, Michigan
42
Juan Martinez Camarillo
Michigan City, Indiana
36
Donald James Rogers
New Buffalo, Michigan
62
Manuel Eudave
La Porte, Indiana
54
Santiago Cardenas
Michigan City, Indiana
41
For more information, please see the continuation in support of the criminal complaint available on the public docket. United States v. Hernandez, et al., No. 21-MJ-551, ECF No. 1 (W.D. Mich.).
The arrests are part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation that began in 2020 and has been led by the Federal Bureau of Investigation (FBI),
Drug Enforcement Administration (DEA), United States Marshals Service (USMS), Immigration and Customs Enforcement (ICE), United States Postal Inspection Service (USPIS), Michigan State Police’s Southwest Enforcement Team (SWET), Berrien County Sheriff’s Department (BCSD), Pokagon Band Tribal Police, Michigan City Police Department, La Porte City Police Department, and the Cook County Sheriff Department.
OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using an intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Under the United States Constitution, the government must present felony cases to a grand jury and obtain indictments to proceed with prosecution. The charges in the complaints are merely accusations and are not evidence of guilt. The defendants are presumed innocent unless and until proven guilty in a court of law. The government has the burden of proving guilt beyond a reasonable doubt.
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Traverse City Physical Therapy and Home Health Practices Resolve Civil Liability for Alleged Healthcare Fraud Against the United StatesRead the Press Release
GRAND RAPIDS – Traverse City-based Defendants Great Lakes Therapy Housecalls, P.C., Great Lakes Home Healthcare Specialists, LLC, and their owner, James A. Harvey, have agreed to pay $450,000 to resolve allegations that they violated the False Claims Act by submitting false claims for reimbursement to the Medicare Program.
This settlement resolves allegations set forth in a complaint filed earlier this year by the United States in the U.S. District for the Western District of Michigan. The United States brought this case, captioned United States v. Harvey, et al., No. 1:21-cv-442, under the False Claims Act, which entitles the government to collect up to treble the amount of damages caused by a defendant, as well as civil penalties for each violation.
In the complaint, the United States alleged that the Defendants submitted hundreds of false claims to the government by knowingly billing Medicare for additional units of physical and occupational therapy services that they never provided. Additionally, the United States alleged that the Defendants falsely submitted claims for physical therapy services under the name of an employee while she was on maternity leave, knowingly hired an unqualified person as a medical social worker and billed Medicare for episodes of care provided to homebound Medicare beneficiaries that included this individual’s services, and altered the dates of physician signatures on certifications of beneficiary eligibility for home health services.
In September 2021, the United States also reached a civil settlement with Daniel R. McGoran, the former office manager at Great Lakes Therapy Housecalls, for his role in the fraud scheme involving billing additional units of physical and occupational therapy. Mr. McGoran agreed to pay the United States $75,071.
“Lying to the government when seeking Medicare reimbursement and falsifying patient records cheats taxpayers everywhere who support the Medicare Program,” said U.S. Attorney Andrew Birge. “My office will come after false billing like that not only for the civil penalties but also for the treble damages as well to deter future cheating.”
“When medical providers increase profits by submitting false claims to Medicare, they unjustly enrich themselves and undermine the public’s trust in the medical profession,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General (“HHS-OIG”). “We will continue to work diligently with our law enforcement partners to protect the integrity of Medicare and the beneficiaries served by such federal health care programs.”
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan, HHS-OIG, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Andrew J. Hull and Ryan D. Cobb represented the United States.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
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Bitcoin Money Transmitters and Launderers Plead GuiltyRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Christopher Allan Boden, a/k/a “Captain,” 46, of Grand Rapids, Daniel Reynold DeJager, a/k/a “Daniel Miester,” and “Danichi,” 35, of Tacoma, Washington, and Leesa Beth Vogt, a/k/a “Lis Bokt,” and “Moose,” 37, also of Grand Rapids, pled guilty to various financial crimes. Boden pled guilty to operating an unlicensed money transmitting business, money laundering, and structuring deposits to evade financial institution reporting requirements. DeJager pled guilty to conspiracy to operate an unlicensed money transmitting business and money laundering. Vogt pled guilty to structuring while operating the unlicensed money transmitting business. The pleas occurred before the Honorable Robert J. Jonker, Chief United States District Judge. Boden and DeJager pled to offenses carrying a maximum of up to twenty years in prison, and Vogt pled to an offense carrying a maximum of ten years. The defendants also are subject to financial penalties. The Court scheduled Vogt’s sentencing hearing for February 17, DeJager’s sentencing hearing for February 22, and Boden’s sentencing hearing for February 25.
According to the plea agreements and other public records, Boden, DeJager, and Vogt operated an unlicensed money transmitting business at The Geek Group, a registered non-profit entity, between March 2017 and December 2018, when federal agents searched the business, leading to its closure. DeJager purchased bitcoin from registered exchanges, often laundered it, and then sent it to Boden to sell. Boden and other staff at The Geek Group, including Vogt, would sell bitcoin to customers. Boden, Vogt, and others then “structured” deposits of the cash proceeds so as to avoid detection of their operation and in order to purchase more bitcoin. The defendants sold more than $740,000 in bitcoin. Boden’s customers included drug dealers, and he held himself out to be a money launderer, explaining to prospective customers that “people buy from” him because he sold “clean” bitcoin, not “dirty” bitcoin that could be traced.
“Cryptocurrency is not a license or invitation to commit crime,” said U.S. Attorney Birge. “Federal law regulates those who deal in cryptocurrency as it does those who deal in government-issued currency. We will root out and prosecute crypto criminals wherever we find them. Whether cryptocurrency will be with us for years to come remains to be seen, but its vitality is contingent upon the willingness of those who use it to follow the law.”
“HSI is in the forefront of investigating crimes that utilize cryptocurrency to launder criminal proceeds or to purchase illegal services from throughout the world,” said Homeland Security Investigations Detroit Special Agent in Charge Vance Callender. “Our special agents, working with the IRS, dismantled this unlicensed money transmitting business and put a stop to their illegal enterprise.”
“Financial transactions designed to mask the origin of proceeds from the sale of controlled substances often involve multiple crimes including money laundering, structuring and even unlicensed money service businesses. Stopping complex financial schemes that inject proceeds from illicit sources into the financial system is paramount to dismantling criminal enterprises,” said IRS Criminal Investigation’s Acting Special Agent in Charge Brian Thomas. “IRS-CI is committed to following the money every step, investigating and uncovering complex criminal financial schemes to disrupt and dismantle organized criminal enterprises.”
The investigation was conducted by Homeland Security Investigations and IRS Criminal Investigation, with assistance from the Grand Rapids Police Department. Assistant U.S. Attorney Justin M. Presant is prosecuting the case.
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Battle Creek Man Sentenced to 57 Months in Prison for Fentanyl ChargeRead the Press Release
Clay Shepherd Possessed 1.37 kilograms of the synthetic opioid
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Byerly Birge announced today that Clay Shepherd, 57, of Battle Creek Michigan, was sentenced to 57 months in prison after pleading guilty to possession of fentanyl, a Schedule II controlled substance, with the intent to distribute it. Following his release from federal prison, Shepherd will serve five years on supervised release. United States District Judge Paul Maloney imposed the sentence.
Fentanyl is a synthetic opioid that is 80-100 times stronger than morphine, the substance to which heroin metabolizes. Drug traffickers add fentanyl to heroin to increase its potency or falsely claim that the fentanyl they are selling is highly potent heroin.
On April 18, 2018, Battle Creek Police officers executed a search warrant at Shepherd’s residence and discovered a package containing 399 grams of fentanyl and tramadol and a package containing 975 grams of fentanyl concealed behind insulation in the attic. The Battle Creek Police Department requested the assistance of federal authorities to investigate the matter further. Investigators from Homeland Security Investigations (“HSI”) developed evidence that Shepherd possessed the fentanyl with the intent to distribute it by investigating his known associates and customers, who confirmed that Shepherd was selling narcotics and possessed the fentanyl seized on April 18.
“Clay Shepherd profited from distributing fentanyl, an opioid nearly 100 times more potent than morphine, without any regard to the destruction it caused to families or communities here in Michigan,” Homeland Security Investigations (HSI) Special Agent-in-Charge Vance Callender said. “This complex investigation could not have been brought to conclusion without the outstanding partnership between HSI and Battle Creek PD. Thank you to the hardworking and dedicated officers in Battle Creek.”
U.S. Attorney Birge said, “My office will continue to aggressively pursue those who illegally peddle fentanyl to our community. The illegal trafficking of this drug is responsible for a multitude of overdose deaths in our state, and we are committed to deterring the trafficking that leads to these tragedies.”
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Portage Man Arrested on Federal Indictment Charging Fraud and Theft from Amazon’s Textbook Rental ProgramRead the Press Release
Geoffrey Mark Hays Talsma Faces Mail Fraud and Other Federal Charges
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Geoffrey Mark Hays Talsma, 36, of Portage, Michigan, was arrested today on a felony indictment filed in the United States District Court in Grand Rapids, Michigan, charging mail and wire fraud, interstate transportation of stolen property, aggravated identity theft and making false statements to the FBI.
According to the indictment, from January 2016 to March 2021, Talsma rented thousands of textbooks from Amazon’s Textbook Rental Program with no intention of returning the textbooks by the specified return date or paying the established buyout price for the textbooks. Instead, Talsma allegedly sold the textbooks to local textbook businesses and through the internet. Talsma defrauded Amazon and the Textbook Rental Program by repeatedly creating new Amazon accounts and using variations of other data to avoid detection, the indictment claims. On many occasions, according to the charges, Talsma additionally defrauded Amazon by seeking and obtaining a credit to his account by claiming that he did not receive the textbooks or that he received other items he could not return. Also named in the indictment were Gregory Mark Gleesing (age 43) and Lovedeep Singh Dhanoa (age 25), both from Portage, Michigan, and Paul Steven Larson (age 32) of Kalamazoo, Michigan.
If convicted, Talsma faces a maximum term of imprisonment of 20 years for each of the mail and wire fraud offenses; a maximum term of imprisonment of 10 years for interstate transportation of stolen property; and a maximum term of imprisonment of 5 years for making false statements to the FBI. Additionally, if convicted of the aggravated identity theft charges, Talsma will serve a maximum term of imprisonment of four years consecutive to any sentence imposed for the other criminal offenses. Restitution and forfeiture of certain assets obtained with the proceeds of the scheme may also be ordered as a result of a conviction.
The offices of the Federal Bureau of Investigation, Kalamazoo, and the United States Postal Inspection Service, Grand Rapids, are handling the investigation. Assistant United States Attorney Ronald M. Stella is prosecuting the case.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Methamphetamine Trafficking Conspirators Sentenced to Decades in Federal PrisonRead the Press Release
Conspirators Distributed Hundreds of Pounds of Methamphetamine Throughout West Michigan
GRAND RAPIDS, MICHIGAN—United States Attorney Andrew Birge announced today that nine defendants have been convicted and sentenced to federal prison for their role in an extensive methamphetamine trafficking conspiracy that involved the distribution of hundreds of pounds of crystal methamphetamine throughout West Michigan. The final three defendants, who were convicted by a jury on June 10, 2021 after a four-day trial in Grand Rapids, were recently sentenced to federal prison by U.S. District Judge Janet T. Neff.
Timothy Mark Calicutt, a resident of Kalamazoo, Michigan, was sentenced to 240 months in federal prison on October 7, 2021. Calicutt, the Kalamazoo-based leader and organizer of this conspiracy, maintained a drug premises in Kalamazoo where he cut pure methamphetamine received from suppliers in Chicago for further distribution in Kalamazoo and Allegan Counties, and elsewhere. Calicutt, a previously convicted felon, also illegally possessed a firearm to protect his drugs and drug proceeds.
Dwayne Deshaun Parks, a resident of Kalamazoo, Michigan and Chicago, Illinois, was sentenced to 240 months in federal prison on October 12, 2021. Parks connected the Chicago-based suppliers with Calicutt, and admitted to agents that between late 2019 and June 2020, he distributed between 150 and 200 pounds of crystal methamphetamine into West Michigan, all of it going to Calicutt for further distribution.
Ronald Lee Sutherland, a resident of Allegan, Michigan, was sentenced to 120 months in federal prison on October 7, 2021. Sutherland purchased pounds of methamphetamine during the conspiracy directly from Parks and further distributed that methamphetamine to other individuals in Allegan County.
In announcing the sentences, U.S. Attorney Birge stated, “The U.S. Attorney’s Office is committed to bringing methamphetamine traffickers to justice. Anyone who distributes methamphetamine in West Michigan faces significant penalties, including years in federal prison. This multi-agency investigation, made possible through the hard work of state, local, and federal law enforcement officers, stopped the flow of large amounts of a dangerous drug into our communities.”
DEA began the investigation into this methamphetamine-trafficking conspiracy in 2019, in partnership with the Southwest Enforcement Team (SWET) and West Michigan Enforcement Team (WEMET) of the Michigan State Police (MSP), and the Kalamazoo Valley Enforcement Team (KVET).
“These nine individuals were part of a drug trafficking organization responsible for flooding western Michigan with potent and dangerous methamphetamine,” said DEA Special Agent in Charge Keith Martin. “These sentences should serve as a notice that DEA, and our law enforcement partners, will employ every resource to bring criminals who profit off the suffering of others to justice.”
MSP D/F/Lt. Rick Pazder, SWET Task Force Section Commander, stated: “Operation Rabbit Hole was a long-term, thorough investigation into the drug trafficking dynamic that was dumping multiple pounds of high-purity methamphetamine into our small towns and rural communities by way of Kalamazoo and Chicago. The operation took down high-level narcotics distributors within multiple counties while simultaneously indicting the large, regional sources of narcotics supply. Methamphetamine is a highly addictive and very harmful drug, and the current low cost of this drug has contributed to an unprecedented spread, spurred on by greed and indifference. This investigation, and the resulting indictments and sentences, will make a lasting, positive impact on the communities in Allegan and Barry Counties. SWET is proud to work shoulder to shoulder with our law enforcement partners and the prosecutors who made this investigation a success.”
During the investigation, investigators seized over 18 pounds of crystal methamphetamine (including 11 pounds of crystal methamphetamine from Calicutt and Parks on June 25, 2020), two firearms, and over $27,000 in drug proceeds. The nine defendants, their crimes of convictions, and sentence information are as follows:
Defendant
City
Conviction(s)
Sentence
Timothy Mark Calicutt
Kalamazoo
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine;
- Possession with Intent to Distribute 50 grams or more of methamphetamine;
- Felon in Possession of a Firearm and Ammunition;
- Maintaining a Drug-Involved Premises.
240 months in prison
Dwayne Deshaun Parks
Kalamazoo and Chicago
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine;
- Possession with Intent to Distribute 50 grams or more of methamphetamine (2 counts).
240 months in prison
Ronald Lee Sutherland
Allegan
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine;
- Possession with Intent to Distribute 50 grams or more of methamphetamine.
120 months in prison
Michael Chad Sutherland
Allegan
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine;
- Possession of a Firearm in Furtherance of a Drug-Trafficking Crime
92 months in prison
Jackie Lee Cherry, Jr.
Muskegon
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine
120 months in prison
John Allen Galbreath
Muskegon
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine
120 months in prison
Larry James Martz
Allegan
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine
120 months in prison
Charles William-Maurice Hudson
Battle Creek
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine
63 months in prison
Sara Ann Whittemore
Allegan
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine
24 months in prison
The investigation, dubbed Operation Rabbit Hole, was led by the Drug Enforcement Administration in partnership with the multijurisdictional narcotics task forces SWET, WEMET, and KVET. Assistant U.S. Attorney Daniel T. McGraw handled the prosecution. The investigation was part of the U.S. Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program. 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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Ludington Man Sentenced to 19 Years for Being A Felon in Possession of Firearms and AmmunitionRead the Press Release
GRAND RAPIDS, MICHIGAN —U.S. Attorney Andrew Birge announced that Jeffrey Allen Kaiser, of Ludington, Michigan, was sentenced to 228 months’ imprisonment by U.S. District Judge Paul L. Maloney on Monday September 27, 2021. Mr. Kaiser was also ordered to pay a $300 special assessment, and, when he is released from prison, he will be on federal supervised release for a period of 3 years. Judge Maloney, in imposing sentence, commented that Mr. Kaiser posed a “very significant threat to the public.”
Mr. Kaiser was convicted after a three-day jury trial earlier this year. The jury heard that on August 13, 2020, the Ludington Police Department received 911 calls regarding two separate incidents where Mr. Kaiser threatened people with a pistol. One of these incidents occurred outside in a residential neighborhood in downtown Ludington. Following these events, Ludington Police searched Mr. Kaiser’s home and backyard, locating a .357 Magnum revolver, a 9mm semiautomatic pistol, and various rounds of ammunition. Because he had been previously convicted of a felony, Mr. Kaiser was prohibited from possessing firearms or ammunition.
“The use of firearms to threaten or harm others calls for serious consequences,” commented U.S. Attorney Andrew Birge. “We work hard and coordinate with local law enforcement partners as much as we can to ensure there are significant consequences in such cases.”
This case was investigated by the ATF and the Ludington Police Department and was prosecuted by Assistant U.S. Attorneys Lauren F. Biksacky and Alexis M. Sanford as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, local, and tribal law enforcement work closely together to identify and prosecute individuals responsible for driving violent crime in our communities in order to make neighborhoods safer for everyone. Individuals with information or concerns about violent crime or firearms offenses should contact local law enforcement. For more information about Project Safe Neighborhoods, visit: https://www.justice.gov/psn.
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Grand Rapids Man Sentenced to Five Years, $1.6 Million in Restitution for ArsonRead the Press Release
GRAND RAPIDS, MICHIGAN —U.S. Attorney Andrew Birge announced that today Kevin Daniel Baker, of Grand Rapids, Michigan, was sentenced to 60 months’ imprisonment, followed by two years’ supervised release, by U.S. District Judge Janet T. Neff.
Mr. Baker admitted to breaking into Austin Jordan Engines, an automotive repair business located in Wyoming, Michigan, to find items that he could steal and sell to support his drug addiction. To conceal the evidence of his burglary, Mr. Baker set the business on fire and then drove away in a stolen car packed with stolen goods. The next day, Mr. Baker drove the stolen car to a local business and attempted to cash checks that he had stolen from Austin Jordan Engines. A suspicious employee called law enforcement and Mr. Baker was quickly placed under arrest.
Judge Neff commented that Mr. Baker “was extremely lucky no one was injured or killed” because of his arson. The blaze severely damaged Austin Jordan Engines, resulting in over $1.6 million dollars of loss and damages, which Judge Neff ordered Mr. Baker to pay back as a part of his sentence.
“Setting a fire to conceal evidence of another crime is extremely dangerous” commented U.S. Attorney Andrew Birge. “Arson is an inherently violent act that puts many of our community members at risk, including the firefighters who respond to the scene. With today’s sentence, Mr. Baker is held accountable for his actions.”
“Our partnerships with the U.S. Attorney’s Office and our State and local counterparts, along with our considerable fire investigative resources, ensures those responsible for violent crimes like arson are apprehended and prosecuted,” said Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Acting Special Agent in Charge Keith Krolczyk.
This case was investigated by the ATF and Wyoming Fire Department and was prosecuted by Assistant U.S. Attorney Erin K. Lane.
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Mohamed Haji Sentenced to 130 Months in Prison for Conspiring to Provide Material Support to IsisRead the Press Release
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that Chief United States District Judge Robert J. Jonker sentenced Mohamed Salat Haji, age 28, of Lansing, Michigan to serve 130 months in federal prison for conspiring to provide material support to the Islamic State of Iraq and al-Sham (“ISIS”), a designated foreign terrorist organization. Mohamud Muse was also ordered to serve 12 years of supervision by the court, following his release from prison. The government sought a sentence of 240 months in prison consistent with the sentence recommended by the United States Sentencing Guidelines.
On January 21, 2019, special agents of the Federal Bureau of Investigation and members of its Joint Terrorism Task Force arrested Haji at the Gerald R. Ford International Airport in Grand Rapids, Michigan, after Haji had helped his cousin, Muse Muse, check in for a flight to the first of a series of destinations on his way to Mogadishu, Somalia, with the goal of joining ISIS. Their relative, Mohamud Muse, also was arrested for conspiring to provide material support to ISIS.
According to court documents, between December 2018 and January 2019, Muse Muse coordinated with an individual he believed to be a Somali ISIS fighter to wire funds to be used to purchase airline tickets for travel to Mogadishu, Somalia, where he believed he would meet an ISIS representative. All three defendants picked up money to provide Muse Muse the funds to travel to join ISIS, all three defendants pledged allegiance to ISIS in recorded videos, and all three submitted their videos to individuals they believed were associated with ISIS. Additionally, records provided to the Court at sentencing demonstrated that throughout the conspiracy, which began in January 2017, all three defendants participated in numerous conversations during which they discussed traveling overseas to join ISIS and even adopted fighter aliases by which they would be known when fighting for ISIS.
In June 2021, Haji pled guilty to the charge, admitting that he: (1) agreed with one or more individuals to provide material support or resources (which includes personnel) to ISIS, a foreign terrorist organization; (2) knew that ISIS was a designated foreign terrorist organization or had engaged or engages in terrorist activity or terrorism; and (3) is a U.S. national and that part of the offense occurred in the United States. He further admitted that the individuals he conspired with were his relatives and co-defendants, Muse Muse and Mohamud Muse.
In August 2021, Muse Muse was sentenced to serve 78 months in prison and Mohamud Muse was sentenced to serve 98 months in prison for their respective roles in the offense. This is the third and final defendant to be sentenced in the case.
The Federal Bureau of Investigation (FBI) led the investigation and was assisted by the Michigan State Police, Kent County Sheriff’s Office, Eaton County Sheriff’s Office, Michigan State University Police Department, Lansing Police Department, Grand Rapids Police Department, Gerald R. Ford Airport Police, the U.S. Marshals Service, and the Department of Homeland Security Transportation Security Administration, Federal Air Marshals, and Customs and Border Protection.
Assistant United States Attorneys Clay M. West and Christopher O’Connor prosecuted the case with assistance from the National Security Division Counterterrorism Section.
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Northern Michigan Man Arrested in Connection with Pipe Bombs Left at Cell Phone StoresRead the Press Release
BAY CITY – A Whittemore, Michigan, resident was arrested today in two separate criminal complaints related to the placement of explosive packages outside cellphone stores in Cheboygan and Sault Ste Marie, Michigan, announced Eastern District of Michigan Acting United States Attorney Saima Mohsin and Western District of Michigan United States Attorney Andrew Birge. Whittemore and Cheboygan are in the Eastern District and Sault Ste. Marie is in the Western District.
Mohsin and Birge were joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division.
Charged was John Douglas Allen, 75.
According to the affidavit, on September 15, 2021, at approximately 7:36 pm, a United States Postal Service (USPS) box with black tape on it and a wire coming out of it was placed outside of an AT&T Store, located at 2972 W 8th Street, Sault Ste. Marie, Michigan. Later that evening at approximately 10:10 pm, another USPS box with black tape on it and a wire coming out of it was placed outside of the Verizon Store, located at 1006 S Main Street Plaza 27, Suite 3, Cheboygan, Michigan. The two devices recovered were examined by the FBI laboratory Explosive Unit, which concluded that the two devices were improvised explosive devices (IEDs), also commonly referred to as homemade bombs or pipe bombs. Based on video footage taken from the cell phone stores and other nearby businesses, as well as an exhaustive investigation by law enforcement, agents were able to determine that Allen was the person who allegedly left the packages outside of the stores.
The affidavit further alleges that letters, placed inside polka dot envelops and sealed in zip lock bags, were left at cell towers located in the Upper Peninsula. The letters contained threats aimed at telecommunication carriers.
In each district, Allen faces charges of Extortion, which is punishable by up to 20 years in prison, and Attempted Damage or Destruction of Buildings Used in Interstate Commerce, which is punishable by a minimum of five years and not more than 20 years in prison. Allen will be making an initial appearance this afternoon in Bay City on the complaint pending in the Eastern District of Michigan. A date has not yet been set for his appearance in the Western District of Michigan to answer those charges.
The charges in a complaint are merely allegations. A defendant remains innocent unless and until proven guilty in a court of law. The investigation is continuing.
This case is being investigated by special agents, intelligence analysts, troopers, deputies, and officers from the FBI, Michigan State Police, Cheboygan County Sheriff's Office, Cheboygan Police Department, Sault Ste. Marie Police Department, Sault Ste. Marie Tribal Police, the US Coast Guard Investigative Service, US Border Patrol and ATF.
Assistant U.S. Attorneys J. Michael Buckley, Jerome Gorgon, Christopher O’Connor and Theodore Greeley are prosecuting the case in their respective districts.
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12 Tribes Selected for Participation in Program Enhancing Tribal Access to National Crime Information DatabasesRead the Press Release
Grand Traverse Band Selected to Join Program to Improve the Exchange of Critical Data for Public Safety
GRAND RAPIDS, MICHIGAN – The Department of Justice has selected an additional 12 federally recognized tribes to participate in the expansion of the Tribal Access Program for National Crime Information (TAP), a program that provides tribal governments with means to access, enter, and exchange data with national crime information systems, including those maintained by the FBI Criminal Justice Information Services (CJIS) Division and the states.
“Timely access to federal criminal information can help protect domestic violence victims, place foster children in safe conditions, solve crimes, and apprehend fugitives on tribal land, among other important uses,” said Deputy Attorney General Lisa O. Monaco. “Increasing tribal access to criminal databases is a priority of the Justice Department and this Administration, and essential to many tribal government efforts to strengthen public safety in their communities.”
“Effective information sharing is a critical component to keeping tribal communities safe,” stated U.S. Attorney Andrew Byerly Birge. “We are delighted that our law enforcement partners at the Grand Traverse Band will now have access to this important tool.”
The program provides training as well as software and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI Criminal Justice Information Services (CJIS) systems. With these additional tribes, there are now 108 federally recognized Tribes participating in TAP.
TAP has been an important resource for the department’s Missing and Murdered Indigenous Persons Initiative and the Presidential Task Force on Missing and Murdered American Indians and Alaska Natives known as Operation Lady Justice. The Department of Justice began TAP in 2015 in response to concerns raised by tribal leaders about the need to have direct access to federal systems.
Using TAP, tribes have shared information about missing persons; registered convicted sex offenders; entered domestic violence orders of protection for nationwide enforcement; run criminal histories; identified and arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
The following tribes have been newly selected for participation in TAP:
1. Confederated Tribes of the Warm Springs Reservation
2. Cow Creek Band of Umpqua
3. Fort Belknap Indian Community
4. Grand Traverse Band of Ottawa and Chippewa
5. Havasupai Tribe
6. Lower Brule Sioux Tribe
7. Menominee Tribe
8. Mille Lacs Band of Ojibwe
9. Muckleshoot Tribe
10. Passamaquoddy Tribe
11. Shingle Springs Band of Miwok
12. United Keetoowah Band of Cherokee
TAP is managed by the Justice Department’s Office of the Chief Information Officer and the Office of Tribal Justice. It is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS), the Office for Victims of Crime (OVC), and the Office on Violence Against Women (OVW).
For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap.
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South Bend Man Sentenced to More Than 24 Years in Federal Prison for Child Sex AbuseRead the Press Release
GRAND RAPIDS, MICHIGAN — Alexander Scott Yossett, 28, of South Bend, Indiana, was sentenced to 293 months (more than 24 years) in federal prison for committing sexual assaults against a young child, U.S. Attorney Andrew Birge announced today. In addition to the prison term, U.S. District Judge Hala Y. Jarbou imposed lifetime supervised release that will commence once Yossett is released from imprisonment. Yossett will also be required to register as a sexual offender.
Yossett pled guilty on May 26, 2021, to Abusive Sexual Contact with a Child Under 12 Years. He admitted that he had repeatedly sexually assaulted a young child while on a tribal reservation in Michigan. In its sentencing memorandum, the U.S. Attorney’s Office argued in favor of a lengthy sentence, pointing to the seriousness of the defendant’s conduct and the need to deter others and protect the public. The United States emphasized the particularly despicable nature of child sex abuse and the lasting scars it leaves on its victims.
U.S. Attorney Birge stated: “The federal penalties for those who sexually abuse children are severe and well-deserved. My office is dedicated to working these cases with our tribal, state, local, and federal partners to make sure that victims receive justice and needed services and that predators are sent away and can pose no threat to children for a very long time.”
This case was jointly investigated by the Pokagon Band of Potawatomi Tribal Police Department and the Federal Bureau of Investigation.
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Muskegon Man Sentenced to over A Year in Prison for Embezzling Labor Union FundsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that United States District Court Judge Paul L. Maloney sentenced Hasan Zahdeh, a former resident of Muskegon, Michigan, to 14 months in a federal prison for embezzling Michigan Union of Healthcare Workers’ (MUHW) funds. Hasan Zahdeh was also ordered to pay $140,498.03 restitution to MUHW and, following his release from prison, to serve 3 years of supervised release.
According to court documents, between approximately May 2017 to about November 2020, while serving as MUHW’s president, Hasan Zahdeh embezzled union funds by using the MUHW’s debit card and using union checks to pay for personal, unauthorized expenses such as international travel, utility bills, home maintenance, and communication bills. The Department of Labor Office of Labor-Management Standards (DOL-OLMS) began investigating Hasan Zahdeh and the accuracy of the MUHW labor organization annual report he filed as the union’s president after DOL-OLMS determined that the total amount of legal services invoiced to MUHW was much less than the amount reported and that invoices submitted in support of the report reflected expenses not related to union business. In January 2021, a Grand Jury for the Western District of Michigan returned an indictment charging Hasan Zahdeh embezzlement and theft of union funds.
In April 2021, Hasan Zahdeh entered into a plea agreement in which he admitted that he (1) falsified union records; (2) wrote four checks to MUHW’s attorney, forged the attorney’s signature on the back of each check, and then deposited each check into his personal bank account; (3) deposited MUHW dues into his personal bank accounts; (4) directed his child to deposit MUHW dues checks into his account and wire him the funds; (5) opened a personal bank account, misrepresented it to MUHW members as a bank account held by MUHW, and then directed MUHW members to direct deposit their dues into this account; and (6) used the MUHW funds he embezzled for personal expenses not authorized by MUHW.
U.S. Attorney Birge commented that “When union officers such as Hasan Zahdeh abuse their authority and line their own pockets, my office will pursue justice, including restitution where appropriate.”
This case was a cooperative effort among Department of Law Office of Labor-Management Standards and the U.S. Attorney’s Office for the Western District of Michigan. Assistant United States Attorney Kristin M. Pinkston represented the United States.
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Department of Justice Reaches Million-Dollar Settlement with Van Andel Research Institute to Resolve Allegations of Undisclosed Foreign Ties to Nih GrantsRead the Press Release
GRAND RAPIDS, MICHIGAN — The Department of Justice (“DOJ”) announced today that Van Andel Research Institute (“VARI” or the “Institute”) has agreed to pay $1.1 million to resolve allegations that it violated the False Claims Act by failing to disclose a foreign component of a National Institutes of Health (“NIH”) award and by failing to disclose foreign research support for two VARI researchers who served as principal investigators on NIH awards. In addition to this settlement—the second settlement with VARI in two years involving allegations of undisclosed foreign influence in federally-sponsored research—NIH imposed Specific Award Conditions on all of VARI’s NIH grants, including by requiring personal, executive-level certifications to the accuracy of NIH submissions, withdrawing certain of VARI’s expanded grant authorities, and removing all of VARI’s NIH grants from the Streamlined Non-Competing Award Process (“SNAP”).
“Full disclosure is essential not only in validating scientific research, but also in the intense competition for scientific funding from the federal government,” U.S. Attorney Andrew Birge said. “NIH’s application process is intended to yield information that is critical to the agency’s responsible stewardship of billions of taxpayer dollars. My office will continue to use every available tool to preserve the integrity of that process. The research community should recognize that these cases are not going away.”
“The government’s allegations in this case should remind research institutions of the potential consequences for failing to adequately investigate ‘red flags’ concerning researchers’ relationships and affiliations,” said Lamont Pugh III, Special Agent in Charge of HHS-OIG’s Chicago Region. “HHS-OIG will continue to hold grantees accountable, and protect the government’s investment of taxpayer resources, regardless of the length or complexity of the investigation.”
NIH requires grant recipients to disclose and obtain prior agency approval if a significant scientific element or segment of an NIH-funded project will be performed outside of the United States (a “Foreign Component”). Foreign Components can include collaborations with foreign researchers who perform experiments in support of an NIH grant, regardless of whether those foreign researchers receive any of the NIH funding. NIH also requires grant recipients to disclose “Other Support,” defined as all resources made available to researchers in support of and/or related to all of their research endeavors, regardless of whether such resources have monetary value. Other Support includes high-value materials that are not freely available (biologics, e.g.) and selection to foreign talent recruitment programs.
In December 2019, VARI paid $5.5 million to resolve allegations that it violated the False Claims Act by submitting grant applications and progress reports to NIH in which VARI failed to disclose Other Support, including Chinese government grants that funded two VARI researchers. Approximately one month later, in January 2020, U.S. Customs and Border Protection (“CBP”) stopped an individual—a former VARI researcher and current professor at the Harbin Institute of Technology (“HIT”) in China (the “HIT Professor”)—at Detroit Metro Airport with undeclared biological research samples in his luggage. The government alleged that the HIT Professor told CBP that the research samples were intended for the laboratory of a professor at VARI (the “VARI Professor”). The CBP stop prompted another investigation of VARI that resulted in the following allegations:
- Undisclosed Foreign Component. The government alleged that after submitting a successful grant application to NIH in June 2017, a VARI researcher began negotiating a research collaboration agreement with HIT that overlapped with the NIH grant in research objectives and methods. The government alleged that VARI administrators did not communicate that the recollaboration agreement was never fully executed and, therefore, VARI and HIT faculty collaborated under the terms of the agreement in a manner that resulted in an undisclosed and unapproved “Foreign Composearch nent” of the NIH grant.
- Undisclosed Other Support (Biological Research Samples). The government alleged that VARI knew or should have known that the HIT Professor was providing biological research samples, synthesized in China, to VARI faculty. The government alleged that after VARI rejected a shipment of biological research samples from HIT in May 2018—a shipment that was falsely described as “documents”—the HIT Professor began bringing research samples into the United States on his person and covertly sending research samples to his home address in Grand Rapids, Michigan. The government alleged that VARI did not investigate the foreign-sourced samples after rejecting the May 2018 shipment and thus continued to make “Other Support” disclosures to NIH with deliberate ignorance or reckless disregard for their accuracy.
- Undisclosed Other Support (Foreign Talent Program). The government alleged that in August 2018, the VARI Professor accepted an invitation from Nanjing Agricultural University (“NAU”) to join an application to China’s “111 Program”; a program funded by the Chinese government to recruit foreign scientists to work at “innovation centers” established through Chinese universities. The government alleged that VARI knew or should have known about the VARI Professor’s affiliation with the 111 Program, including because, after initially failing to disclose the invitation to VARI, the VARI Professor later told the Institute that he had agreed to contribute to—but declined to participate in—a “111 collaborative research project.” The government alleged that the VARI Professor’s application to join the 111 Program, which also involved an agreement to engage in cooperative research with NAU, constituted “Other Support” that should have been disclosed in VARI’s submissions to NIH.
The government also expressed concerns that in November 2018, the VARI Professor separately sent his NIH award letter to an NAU professor in China who requested proof that he was collaborating with a researcher funded by the American government.
Approximately one-third of the settlement funds will be returned to NIH, with the remainder going to the United States Treasury. In addition to the $1.1 million settlement, NIH imposed Specific Award Conditions on all of VARI’s NIH grants. Federal regulations allow NIH to impose Specific Award Conditions on grant recipients, including on recipients that have a history of failures to comply with the terms of a federal award. In this case, NIH is requiring an executive-level manager to personally certify the accuracy of all of VARI’s “Other Support” disclosures. NIH is also withdrawing certain of VARI’s expanded budget authorities and removing VARI from SNAP prior to awards. These conditions will remain in place through September 30, 2022 or until NIH assesses and accepts VARI’s completed Corrective Action Plan and summary report.
This case was a cooperative effort among HHS-OIG, the FBI, and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Adam B. Townshend represented the United States.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
A copy of the redacted executed settlement agreement is included in this link.
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U.S. Attorney Announces Criminal and Civil Enforcement Actions Against Medical Practitioners for Roles in Telemedicine Fraud SchemesRead the Press Release
GRAND RAPIDS – U.S. Attorney Andrew B. Birge announced a series of criminal and civil enforcement actions taken as part of a joint-agency healthcare fraud operation in the Western District of Michigan investigating medical practitioners who signed off on illegitimate orders for medical braces and cancer genetic testing promoted by telemarketers. The ongoing investigation—dubbed Operation “Happy Clickers” to reflect many of the practitioners’ habits of approving these orders with little to no review—resolves alleged fraud losses to date to the Medicare Program of over $7.3 million.
These actions follow nationwide takedowns of so-called marketers and owners of durable medical equipment (“DME”) supply companies and cancer genetic testing laboratories who conducted large-scale fraud schemes designed to defraud the Medicare Program (see press releases for takedowns on April 9, 2019, September 27, 2019, and September 30, 2020). The marketers called Medicare beneficiaries, often through overseas call centers, soliciting them for medically unnecessary braces and cancer genetic testing for screening purposes. The marketers, typically working through locum tenens companies, paid medical practitioners to purportedly review and sign these orders under the guise of telemedicine and then sold those signed orders to the owners of the DME supply companies and laboratories in violation of the federal anti-kickback statute.
The resolutions U.S. Attorney Birge announced involved four of the Michigan practitioners who approved and signed these orders on behalf of the marketers:
Richard Laksonen, N.P., a nurse practitioner from Ishpeming, MI, pleaded guilty on August 6, 2021, to one count of making a false statement relating to health care matters. As part of his guilty plea, Mr. Laksonen admitted that he signed orders for medical braces and cancer genetic testing, attesting that he had performed the assessments and verifying that the orders were reasonably and medically necessary, when, in fact, he typically executed the orders without reviewing the records. For example, Mr. Laksonen admitted that, in a one-week period, he signed approximately 335 separate single-patient files, many containing multiple types of braces, spending on average 18 seconds from the time he opened the record to the time he executed it. Mr. Laksonen continued to approve these orders, even after an investigator for a health insurer warned him that the patient referrals were the result of aggressive telemarketing. The investigation further established that many of these braces and tests were not medically necessary. As part of his plea agreement, Mr. Laksonen admitted that Medicare paid over $5.7 million for the orders he approved and signed. The Court will sentence Mr. Laksonen on November 15, 2021.
Hugh G. Deery II, M.D., of Petoskey, MI, Colleen Browne, D.O., formerly of Portland, MI, and Mosab Deen, D.O., of Royal Oak, MI, resolved civil liability for alleged violations of the False Claims Act by entering into civil settlements with the United States. These physicians approved orders for medically unnecessary braces and cancer genetic testing despite many red flags that these items and services were illegitimate. For example, there were often discrepancies between the brace orders and “examination” notes that the physicians signed and the recorded phone calls between the overseas call centers and the Medicare beneficiaries. Additionally, the marketer often suggested the physicians sign multiple brace orders for each beneficiary, and the physicians were pressured not to deny claims.
Medicare beneficiaries targeted by this fraud scheme complained of being “bombarded” by overseas telemarketing calls offering “free” braces. If the doctors took the time to listen to these recorded phone calls, they would have known that the calls were run by telemarketers and not medical professionals. The orders the physicians signed resulted in hundreds of thousands of dollars paid by Medicare for medically unnecessary braces, which beneficiaries often did not want or use.
To resolve their individual liability, Dr. Deery has agreed to pay $301,140, Dr. Browne has agreed to pay $42,000, and Dr. Deen has agreed to pay $28,545. Dr. Browne’s settlement agreement also resolved allegations that she ordered medically unnecessary cancer genetic testing for Medicare beneficiaries for cancer screening purposes. Generally, Medicare does not cover genetic testing solely for the purpose of screening for cancer.
“Given that their approval and signatures are necessary for Medicare to pay for these braces and testing, medical practitioners are the professional backstop against these fraud schemes,” said U.S Attorney Birge. “And when medical practitioners ignore their professional responsibilities, facilitating these fraud schemes in our district, they will be held accountable.”
“The ordering of medically unnecessary services resulting from purported telemedicine visits to Medicare is blatant fraud,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our law enforcement partners and federal prosecutors to identify and hold accountable those individuals who choose to execute healthcare fraud schemes, and the practitioners who legitimize these schemes, and waste vital taxpayer dollars.”
“As medical professionals, these defendants had an obligation to conduct a good faith review of the devices and medical tests being ordered on behalf of Medicare patients,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Field Office. “Their failure to do so contributes to the billions of dollars of fraud losses Medicare suffers annually. Collaborative efforts like this one, demonstrate the FBI and our partners resolve to hold accountable those seeking to defraud the Medicare system.”
Operation “Happy Clickers” is an ongoing initiative by HHS-OIG, the FBI, and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Raymond E. Beckering III is overseeing and prosecuting the criminal investigation, and Assistant U.S. Attorney Andrew J. Hull is representing the United States in the parallel civil investigations.
Individuals, including medical professionals, who are aware of past or ongoing conduct involving solicitation and fraudulent approval of medical braces and cancer genetic testing through purported telemedicine services can call the U.S. Attorney’s Office Healthcare Fraud Investigator at 616-808-7572 or submit an online complaint to the HHS-OIG Hotline: https://oig.hhs.gov/fraud/report-fraud/
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Mohamud Muse Receives 98 Months in Prison for Conspiring to Provide Material Support to ISISRead the Press Release
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that Chief United States District Judge Robert J. Jonker sentenced Mohamud Abdikadir Muse, age 25, of Lansing, Michigan to serve 98 months in federal prison for conspiring to provide material support to the Islamic State of Iraq and al-Sham (“ISIS”), a designated foreign terrorist organization. Following his release from prison, Mohamud Muse was ordered to serve 10 years of supervised release. The government sought a sentence of 198 months in prison consistent with the sentence recommended by the United States Sentencing Guidelines.
On January 21, 2019, special agents of the Federal Bureau of Investigation and members of its Joint Terrorism Task Force arrested Mohamud Muse at the Gerald R. Ford International Airport in Grand Rapids, Michigan, after his brother, Muse Muse, checked in for a flight to the first of a series of destinations on his way to Mogadishu, Somalia, with the goal of joining ISIS. Their relative, Mohamed Haji, also was arrested for conspiring to provide material support to ISIS.
According to court documents, between December 2018 and January 2019, Muse Muse coordinated with an individual he believed to be a Somali ISIS fighter to wire funds to be used to purchase airline tickets for travel to Mogadishu, Somalia, where he believed he would meet an ISIS representative. All three defendants picked up money to provide Muse Muse the funds to travel to join ISIS, all three defendants pledged allegiance to ISIS in recorded videos, and all three submitted their videos to individuals they believed were associated with ISIS. Additionally, records provided to the Court at sentencing demonstrated that throughout the conspiracy, which began in January 2017, all three defendants participated in numerous conversations during which they discussed traveling overseas to join ISIS and even adopted fighter aliases by which they would be known when fighting for ISIS.
In January 2020, Mohamud Muse admitted that he: (1) agreed with one or more individuals to provide material support or resources (which includes personnel) to ISIS, a foreign terrorist organization; (2) knew that ISIS was a designated foreign terrorist organization or had engaged or engages in terrorist activity or terrorism; and (3) is a U.S. national and that part of the offense occurred in the United States. He further admitted that the individuals he conspired with were his relatives and co-defendants, Muse Muse and Mohamed Haji.
On Tuesday, Muse Muse was sentenced to serve 78 months in prison for his role in the offense. Haji also pled guilty in connection with the plot and awaits sentencing on September 22, 2021.
In sentencing Mohamud Muse to more than eight years in prison for his role in the offense, the Court found that Mohamud Muse was more culpable than co-defendant Muse Muse because the evidence demonstrated that Mohamud Muse was the first of the three defendants to embrace ISIS’s ideology and, as an older brother, helped radicalize Muse Muse’s views and encouraged him to follow and support ISIS. Due to the Court’s disagreement with the Sentencing Guidelines and because Mohamud Muse did not have a prior criminal history, the Court departed downward from the applicable Sentencing Guideline sentence.
This case was investigated by the Federal Bureau of Investigation. The FBI was assisted by the Michigan State Police, Kent County Sheriff’s Office, Eaton County Sheriff’s Office, Michigan State University Police Department, Lansing Police Department, Grand Rapids Police Department, Gerald R. Ford Airport Police, the U.S. Marshals Service, and the Department of Homeland Security Transportation Security Administration, Federal Air Marshals, and Customs and Border Protection.
Assistant United States Attorneys Clay West and Christopher O’Connor are prosecuting the case with assistance from the National Security Division Counterterrorism Section.
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Muse Muse, the First of Three Lansing Men to Be Sentenced for Conspiring to Provide Material Support to Isis, Receives 78 Months in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that Chief United States District Judge Robert J. Jonker sentenced Muse Muse, age 22, of Lansing, Michigan to serve 78 months in federal prison for conspiring to provide material support to the Islamic State of Iraq and al-Sham (“ISIS”), a designated foreign terrorist organization. Following his release from prison, Muse Muse was ordered to serve 10 years of supervised release. The government sought a sentence of 178 months (nearly 15 years) in prison consistent with the sentence recommended by the United States Sentencing Guidelines.
On January 21, 2019, special agents of the Federal Bureau of Investigation and members of its Joint Terrorism Task Force arrested Muse Muse at the Gerald R. Ford International Airport in Grand Rapids, Michigan, after he checked in for a flight to the first of a series of destinations on his way to Mogadishu, Somalia, with the goal of joining ISIS. Shortly thereafter, his brother Mohamud Muse and cousin Mohamed Haji were arrested as co-conspirators. Immediately following his arrest, Muse Muse adopted a handwritten statement prepared for him by an FBI special agent that summarized his interest in ISIS and end goal regarding his support of ISIS. In part, Defendant admitted that he “wanted to join ISIS in Somalia so I wouldn’t have to do an attack in the United States.”
According to court documents, between December 2018 and January 2019, Muse Muse coordinated with an individual he believed to be a Somali ISIS fighter to wire funds to be used to purchase airline tickets for travel to Mogadishu, Somalia, where he believed he would meet an ISIS representative. All three defendants picked up money to provide Muse Muse the funds to travel to join ISIS, all three defendants pledged allegiance to ISIS in recorded videos, and all three submitted their videos to individuals they believed were associated with ISIS.
Additionally, records provided to the Court at sentencing demonstrated that throughout the conspiracy, all three defendants participated in numerous conversations during which they discussed traveling overseas to join ISIS and even adopted fighter aliases by which they would be known when fighting for ISIS. In one conversation between Muse Muse and Mohamed Haji on November 1, 2017, the two celebrated the deadly vehicle attack in New York City that occurred on October 31, 2017. Muse Muse sent the following image to Haji, who responded “Real civil war”:
Later, Haji and Defendant celebrated Defendant’s recent acquisition of a Michigan driver’s license. Haji began, “You’re a driver now” and “that’s good so you can drive that [martyrdom] car right.” Muse Muse responded, “Yes [God willing].” Muse Muse also said, “I’ve been thinking about getting a rifle and something” and “I’m starting to entertain these thoughts.” In March 2018, Muse Muse sent a message to a relative declaring: “I’m a terrorist” and “I’m going to Somalia [God willing].”
In January 2020, Muse Muse admitted that he: (1) agreed with one or more individuals to provide material support or resources (which includes personnel) to ISIS, a foreign terrorist organization; (2) knew that ISIS was a designated foreign terrorist organization or had engaged or engages in terrorist activity or terrorism; and (3) is a U.S. national and that part of the offense occurred in the United States. Muse Muse further admitted that the individuals he conspired with were his relatives and co-defendants, Mohamud Muse and Mohamed Haji. Mohamud Muse and Haji have each also pled guilty in connection with the plot and await sentencing.
In sentencing Muse Muse, the Court found that his age at the time of the offense, his lack of personal financial resources to finance overseas travel, and the potential for rehabilitation were among the factors considered by the Court in imposing the 78-month sentence. Due to the Court’s disagreement with the Sentencing Guidelines and because Muse Muse did not have a prior criminal history, the Court departed downward an additional 52 months from the applicable Sentencing Guideline sentence.
United States Attorney Andrew Birge stated, “Although we are disappointed and respectfully disagree with the sentence imposed by the Court, we applaud the FBI’s successful efforts to prevent this defendant from assisting a dangerous international terrorist organization to carry out attacks here or overseas. This sentence will ensure that, at least for the next six and one-half years, Muse Muse will not be able to join ISIS overseas to assist its members with committing violence. Detecting, preventing, and prosecuting terrorism offenses remains the highest priority for the Department of Justice and my office.”
“Muse Muse’s determination to join ISIS and harm Americans in Michigan and overseas was well documented during the investigation,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Division. “The FBI’s Joint Terrorism Task Force works every day to prevent violence before it occurs, and once again I commend the outstanding work of our partners on the JTTF who work 24/7 to keep the citizens of Michigan safe.”
The FBI’s investigation was assisted by the Michigan State Police, Kent County Sheriff’s Office, Eaton County Sheriff’s Office, Michigan State University Police Department, Lansing Police Department, Grand Rapids Police Department, Gerald R. Ford Airport Police, the U.S. Marshals Service, and the Department of Homeland Security Transportation Security Administration, Federal Air Marshals, and Customs and Border Protection.
Assistant United States Attorneys Clay West and Christopher O’Connor are prosecuting the case with assistance from the National Security Division Counterterrorism Section.
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16 Defendants Charged for Drug Trafficking in LansingRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that 16 defendants were arrested and charged with drug-trafficking crimes arising out of the Lansing, Michigan area. Eight defendants were charged in a criminal complaint with conspiring to distribute heroin, fentanyl, and cocaine. Seven other defendants were charged in a different criminal complaint with conspiring to distribute methamphetamine and fentanyl. One defendant was charged by indictment with possession with intent to distribute methamphetamine, fentanyl, and cocaine base.
During the arrests of the defendants and execution of 15 search warrants, federal, state, and local investigators seized bulk quantities of cash, methamphetamine, heroin, and fentanyl. Investigators also seized more than twenty firearms.
Further details of the allegations can be found in the indictment, complaints and supporting affidavits, which were unsealed yesterday. Fourteen of the defendants made their initial appearances yesterday, and two defendants made their initial appearances today.
The charges are the result of a multi-agency investigation by federal, state, and local law enforcement. The Drug Enforcement Administration (DEA); Lansing Police Department (LPD), including Lansing Police Department Special Operations Section (LPD SOS); Homeland Security Investigations (HSI); Michigan State Police (MSP); Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); United States Marshals Service (USMS); and the Internal Revenue Service (IRS) have all supported the investigation. Over 150 federal, state, and local law enforcement officers from Michigan, Illinois, and Ohio assisted with the search warrants and arrests yesterday.
The charges in the criminal complaint are merely accusations and are not evidence of guilt. The defendants are presumed innocent until and unless proven guilty in a court of law. The government has the burden of proving guilt beyond a reasonable doubt.
The below images show some of the items recovered during the arrests and searches:
The following individuals were charged in the complaints and indictment:
Name
Age
Case No.
Edward Washington
39
1:21-mj-401
Demanuel Porter
33
1:21-mj-401
Jamar Street
30
1:21-mj-401
Latisha Mack
32
1:21-mj-401
Jerome Till
50
1:21-mj-401
Ebony Malone
36
1:21-mj-401
Michael Terry
33
1:21-mj-401
Angela Dority
46
1:21-mj-401
Davanti Heard-White
30
1:21-mj-410
John Humphrey
32
1:21-mj-410
Marquise Brooks
33
1:21-mj-410
Miguel Schooler
24
1:21-mj-410
Arnon Lake
34
1:21-mj-410
Demetrus Heard
29
1:21-mj-410
Jeffrey Humphrey
52
1:21-mj-410
Jordan Suttles
30
1:21-cr-141
Lansing Man Sentenced to 15 Years for Being A Felon in Possession of A FirearmRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced that Monquel Dejuan-Lee Paulk, formerly of Lansing, Michigan, was sentenced to 180 months’ imprisonment by U.S. District Judge Hala Y. Jarbou. Paulk pleaded guilty to a federal indictment charging him with being a felon in possession of a firearm earlier this year. Upon release, Paulk will be supervised for 4 years. Paulk was facing a mandatory sentence of 15 years because of a history of previous violent crimes, including assault with a dangerous weapon and unarmed robbery.
On July 14, 2020, Paulk appeared in the 30th Circuit Court in Ingham County and received a sentence of 36 to 270 months’ custody for the offense of unarmed robbery. Paulk was ordered to report to the Ingham County Jail by 5:00 p.m. that day to begin his sentence but did not appear. On August 19, 2020, Lansing Police Department officers and Michigan State Police Troopers conducted surveillance and located and arrested Paulk and another person in Lansing. At the time of his arrest, Paulk possessed a loaded 9mm pistol while seated inside a vehicle; the pistol had previously been reported stolen. Police found additional ammunition and a second firearm, a 10mm pistol, inside the same vehicle. National Integrated Ballistic Information Network testing determined that both firearms had been used in multiple 2020 shootings in the Lansing area. Three of those shootings resulted in non-fatal injuries.
U.S. Attorney Birge said, “My office is committed to supporting local partner law enforcement agencies to prevent, interrupt, and deter violent crime – particularly gun violence. Those who, like Mr. Paulk, illegally possess guns traceable to shootings will get our attention and may face a very long time safely away from the communities they endanger.”
Bureau of Alcohol, Tobacco, Firearms, and Explosives Acting Special Agent in Charge Keith Krolcyzk said, “The National Integrated Ballistic Information Network (NIBIN) is one of the many intelligence-sharing resources used in collaboration among Federal, State, and local prosecutors and law enforcement ensuring maximum impact in reducing the threat of gun violence.”
Interim Lansing Police Chief Ellery Sosebee said, “Historically, partnerships in Law Enforcement lead to success. The Lansing Police Department Violent Crime Initiative team alongside our State and Federal partners are committed to ensuring crimes involving firearms receive all the resources we have available to hold offenders accountable.”
This case was prosecuted by Assistant U.S. Attorney Kristin M. Pinkston and investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lansing Police Department as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, local, and tribal law enforcement work closely together to identify and prosecute individuals responsible for driving violent crime in our communities in order to make neighborhoods safer for everyone. Individuals with information or concerns about violent crime or firearms offenses should contact local law enforcement. For more information about Project Safe Neighborhoods, visit: https://www.justice.gov/psn
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Four Charged in Multistate Pharmacy Burglary ConspiracyRead the Press Release
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that four men were indicted by a grand jury on federal charges for conspiring to distribute controlled substances and conspiring to break into pharmacies to steal controlled substances.
The indictment alleges that Keonta Anthony (22 years old), William Anthony (24 years old), Dajohn Davis (22 years old), and Donald Beauchamp (33 years old) broke into, and attempted to break into, pharmacies on at least 14 occasions in 2020 and 2021 in order to steal controlled substances, including fentanyl, oxycodone, morphine, and others. The pharmacies were in Michigan, West Virginia, Kentucky, Iowa, and Minnesota. All four defendants are from the Detroit metropolitan area.
Each defendant is charged with conspiracy to distribute and possess with intent to distribute controlled substances (punishable by up to 20 years in prison and a fine of up to $1,000,000) and conspiracy to commit burglary involving controlled substances (punishable by up to 10 years in prison and a fine of up to $250,000).
The charges in the indictment are merely accusations and are not evidence of guilt. The defendants are presumed innocent unless and until proven guilty in a court of law. The government has the burden of proving guilt beyond a reasonable doubt. Actual sentences for federal crimes are typically less than the maximum penalties provided by law. Upon conviction, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
These charges are part of an investigation conducted by the Drug Enforcement Administration Tactical Diversion Squad, Ingham County Sheriff’s Department, Jackson County Sheriff’s Department, Eaton County Sheriff’s Department, Grand Ledge Police Department, Livonia Police Department, Michigan State Police, Kalamazoo Department of Public Safety, and several other out-of-state police departments.
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Final Defendant Sentenced in Eleven-Defendant Battle Creek Drug Trafficking ConspiracyRead the Press Release
GRAND RAPIDS, MICHIGAN —United States Attorney Andrew Birge announced today that on July 12, 2021, Ricardo Mercado-Lozano, also known as Heriberto Diaz-Lozano and Eddie Diaz, a citizen of Mexico and resident of Greenwood, Indiana, was sentenced to 292 months in prison by U.S. District Judge Paul L. Maloney for his role as a regional supplier in an eleven-defendant, multistate drug trafficking conspiracy. Mercado-Lozano was the final defendant sentenced.
The drug-trafficking conspiracy was led in Michigan by co-defendant Andrew Bravo of Battle Creek. Bravo’s drug-trafficking organization distributed kilograms of cocaine and crystal methamphetamine, and quantities of heroin, fentanyl, ecstasy, and kilograms of marijuana, in and around Battle Creek and Kalamazoo between May 2017 and December 2019. Bravo pleaded guilty to the drug-trafficking conspiracy on June 4, 2020 and was sentenced to 264 months in prison on October 5, 2020 by Judge Maloney.
Mercado-Lozano, a self-admitted associate of the Sinaloa cartel, was a regional supplier of kilograms of cocaine and quantities of crystal methamphetamine to Bravo, who further distributed the controlled substances to other individuals in Battle Creek and Kalamazoo. In addition to supplying Bravo in Battle Creek, Mercado also supplied drug traffickers around Louisville, Kentucky. On December 17, 2018, investigators stopped a vehicle carrying approximately seven pounds of methamphetamine after leaving Mercado-Lozano’s residence in Kentucky. In 2015, Mercado-Lozano was deported to Mexico following a five-year prison sentence on a felony kidnapping conviction out of Riverside County, California.
In announcing the sentence, U.S. Attorney Birge stated, “These convictions and sentences are the result of a long-term, multi-agency investigation into the drug trafficking of Andrew Bravo and his co-conspirators, who distributed cocaine, crystal methamphetamine, heroin, fentanyl, and marijuana, among other controlled substances, into the Battle Creek and Kalamazoo communities for years. The U.S Attorney’s Office is committed to bringing traffickers of dangerous drugs to justice no matter how long it takes. Our local communities are now safer with these individuals off the streets.”
"HSI special agents specialize in conducting long-term multi-national investigations against some of the most sophisticated criminals on the planet,” said Homeland Security Investigation’s Special Agent in Charge Vance Callender. “This is now the twelfth individual convicted for participating in a now defunct conspiracy to smuggle drugs from Mexico, through California, to western Michigan.” (A twelfth defendant pled guilty to related charges in California and awaits sentencing there.)
HSI and the Battle Creek Police Department (BCPD) began the investigation into Bravo’s drug-trafficking organization in mid-2017, in partnership with the Drug Enforcement Administration (DEA), Internal Revenue Service Criminal Investigation (IRS-CI), Michigan State Police (MSP), Emmett Township Police Department, Kalamazoo Department of Public Safety, St. Joseph Police Department, Calhoun County Sheriff’s Department, Indiana State Police, and Kalamazoo County Sheriff’s Office.
“Some of the best work we ever get to do in complex investigations like this one is the work we do jointly with our state and federal partners,” said Jim A. Blocker, Chief of Police, City of Battle Creek Police Department. “Our community is safer, we are better, and jointly we are all grateful on behalf of the many families wrongly impacted by these criminal enterprises."
“Through collaboration with our federal, state and local enforcement partners, we are making major progress in thwarting the drug cartels in their operations in western Michigan,” said DEA Special Agent in Charge Keith Martin. “We will continue to work to ensure that criminals who peddle in these poisons and wreak havoc in our communities will face consequences for their criminal activities.”
In December 2019, during the arrests of the defendants and execution of associated search warrants in this case, federal and state investigators seized quantities of cocaine, fentanyl, heroin, over a kilogram of crystal methamphetamine, over 50 pounds of processed marijuana, over 300 marijuana plants, other controlled substances, three handguns, and over $50,000 in drug proceeds. The eleven defendants, their crimes of convictions, and sentence information are as follows:
Defendant
City
Conviction(s)
Sentence
Andrew Rolando Bravo
Battle Creek
- Conspiracy to Manufacture, Distribute and Possess with Intent to Distribute Controlled Substances (including 50 grams or more of Methamphetamine and 100 kilograms or more or 100 plants of Marijuana)
264 months
in prison
Ricardo Mercado-Lozano
also known as
Heriberto Diaz-Lozano and
Eddie Diaz
Greenwood, Indiana
- Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (including 500 grams or more of Cocaine)
292 months
in prison
Mark Anthony Mosley
Battle Creek
- Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (including 50 grams or more of Methamphetamine)
200 months
in prison
Christopher Michael Dreams
Battle Creek
- Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (including 50 grams or more of Methamphetamine)
168 months
in prison
Rodney C. Compton, Jr.
Kalamazoo
- Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (including 50 grams or more of Methamphetamine)
100 months
in prison
Erineo Wallace
Lansing
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of Methamphetamine, Cocaine, and MDMA or Ecstasy
60 months
in prison
Troy Edward Bush
Kalamazoo
- Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (including 50 grams or more of Methamphetamine)
120 months
in prison
Stacey Parcell Gibson
Battle Creek
- Conspiracy to Distribute and Possess with Intent to Distribute Cocaine
- Possession with Intent to Distribute Cocaine
84 months
In prison
Wayne Henry Hawley
Battle Creek
- Conspiracy to Distribute and Possess with Intent to Distribute Heroin, Cocaine, and Methamphetamine
120 months
in prison
Cory Karl Cadieux
Hudsonville
- Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute 50 kilograms or more of Marijuana
37 months
in prison
Jeremiah E. Smith
Kalamazoo
- Unlawful Use of a Communication Facility to Cause or Facilitate the Commission of Felonies under the Controlled Substances Act
Time served and 1-year supervised release
This prosecution, dubbed Operation After Hours, 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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was prosecuted by Assistant United States Attorneys Daniel T. McGraw and Vito S. Solitro.
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Nine People Convicted for Involvement in Crystal Methamphetamine Distribution ConspiracyRead the Press Release
GRAND RAPIDS, MICHIGAN —United States Attorney Andrew Birge announced today that on June 10, 2021, a federal jury returned guilty verdicts against three defendants following a four-day trial in Grand Rapids: Timothy Mark Calicutt, a resident of Kalamazoo, Dwayne Deshaun Parks, a resident of Kalamazoo, and Ronald Lee Sutherland, a resident of Allegan. Calicutt, Parks and Sutherland are among nine total defendants convicted for their respective roles in a crystal methamphetamine trafficking conspiracy that involved hundreds of pounds of methamphetamine distributed throughout Allegan, Barry, Calhoun, Kalamazoo, Kent, and Muskegon counties from late 2019 through June 2020.
Parks was a regional supplier of hundreds of pounds of crystal methamphetamine to Calicutt, who used his drug house in Kalamazoo to cut the methamphetamine and further distribute it to other individuals. Parks also distributed pounds of methamphetamine to Sutherland, who re-distributed it to buyers in Allegan. Over the course of the investigation, each defendant was also caught possessing significant quantities of methamphetamine for distribution. The jury also convicted Calicutt for maintaining a drug house and for being a previously-convicted felon in possession of a firearm.
In announcing the convictions, U.S. Attorney Birge stated, “These convictions are the result of a multi-agency investigation into the distribution of large amounts of crystal methamphetamine throughout West Michigan. Crystal methamphetamine is a dangerous and highly-addictive drug that has done great damage to our local communities. The U.S. Attorney’s Office is committed to bringing traffickers of this drug to justice, which is made possible through the hard work of state and local police officers, and federal agents who were involved in this case.”
“These convictions are the culmination of a long-term investigation, and highlights the impact of multiple agencies joining together to target a drug trafficking organization responsible for trafficking a significant amount of methamphetamine into Michigan,” said Keith W. Martin, Special Agent in Charge, Drug Enforcement Administration (DEA), Detroit Field Division. “DEA will continue to join forces with our federal, state, and local law enforcement partners to target and remove criminals who push poisons and prey on our communities.”
DEA began the investigation into this drug-trafficking conspiracy in 2019, in partnership with the Southwest Enforcement Team (SWET) and West Michigan Enforcement Team (WEMET) of the Michigan State Police (MSP), and the Kalamazoo Valley Enforcement Team (KVET).
“Drug trafficking organizations pose a serious threat to Southwest Michigan communities,” said Detective First Lieutenant Richard Pazder of the Michigan State Police, Southwest Enforcement Team (SWET). “These criminal groups traffic large quantities of low-cost, high-potency levels of crystal methamphetamine to our citizens and seek to spread their criminal enterprise throughout Michigan. SWET is proud to work synergistically with our law enforcement partners in DEA, WEMET, and KVET to dismantle a large-scale drug trafficking organization responsible for pouring hundreds of pounds of crystal methamphetamine into our West Michigan communities through a web of suppliers, distributors, and local drug pushers. Further, SWET would like to express appreciation for the federal prosecutors whose expertise and dedication to justice brought this complex investigation to a successful conclusion.”
Executive Lieutenant Matthew Schemenauer of the Kalamazoo Valley Enforcement Team (KVET) stated: “We are pleased to learn about these convictions. Thanks to a joint effort between local, state, and federal partners, the organizers of this operation that supplied our region with methamphetamine are off the streets. This is a win for all of West Michigan.”
Over the course of the investigation, law enforcement seized over 18 pounds of crystal methamphetamine (including 2 pounds of crystal methamphetamine from Sutherland on June 22, 2020 and 11 pounds of crystal methamphetamine from Calicutt and Parks on June 25, 2020), two firearms, and over $27,000 in drug proceeds.
Approximately 11 pounds of crystal methamphetamine, a stolen, loaded firearm, and over $20,000 in drug proceeds were recovered by law enforcement during the execution of federal search warrants in Kalamazoo on June 25, 2020The nine defendants, their crimes of convictions, and sentence information are as follows:
Defendant
City
Conviction(s)
Sentence
Timothy Mark Calicutt
Kalamazoo
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine;
- Possession with Intent to Distribute 50 grams or more of methamphetamine;
- Felon in Possession of a Firearm and Ammunition;
- Maintaining a Drug-Involved Premises.
Pending Sentencing
Dwayne Deshaun Parks
Kalamazoo and Chicago
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine;
- Possession with Intent to Distribute 50 grams or more of methamphetamine (2 counts).
Pending Sentencing
Ronald Lee Sutherland
Allegan
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine;
- Possession with Intent to Distribute 50 grams or more of methamphetamine.
Pending Sentencing
Michael Chad Sutherland
Allegan
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine;
- Possession of a Firearm in Furtherance of a Drug-Trafficking Crime
Pending Sentencing
Jackie Lee Cherry, Jr.
Muskegon
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine
120 months in prison
John Allen Galbreath
Muskegon
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine
120 months in prison
Larry James Martz
Delton
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine
120 months in prison
Charles William-Maurice Hudson
Battle Creek
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine
63 months in prison
Sara Ann Whittemore
Delton
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of methamphetamine
24 months in prison
This prosecution, dubbed Operation Rabbit Hole, 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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was prosecuted by Assistant United States Attorneys Daniel T. McGraw and Nils R. Kessler.
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Two Lansing Men Sentenced to Federal Prison for Armed Robbery SpreeRead the Press Release
GRAND RAPIDS, MICHIGAN —U.S. Attorney Andrew Birge announced today that James Winston Honeysucker, Jr., of Lansing, Michigan, was sentenced to serve more than 27 years in federal prison for committing four armed robberies in Lansing and Battle Creek, Michigan. Earlier this year, Honeysucker’s co-defendant, Wilnell Lakeey Henry, also of Lansing, was sentenced to more than 6 years for his role as Honeysucker’s getaway driver. The pair were also ordered to pay full restitution to their victims.
From August through October 2019, Honeysucker robbed four cash advance businesses at gunpoint in Lansing and Battle Creek. In each case, he pretended to be interested in applying for a loan before suddenly brandishing a pistol, pointing it at the clerk, and demanding cash. After his first robbery, Honeysucker recruited Henry to serve as his getaway driver, and they committed the remaining three robberies together.
Investigators with the Battle Creek Police Department located and arrested Henry after surveillance videos showed him picking Honeysucker up after the robbery on October 22. Later that night, BCPD officers located Honeysucker at the bus station in Chicago, Illinois. BCPD officers then contacted their counterparts in Chicago, who went to the bus station and arrested Honeysucker with more than $17,000 cash and a loaded pistol in his possession. The FBI then assisted and expanded the investigation to definitively link Honeysucker and Henry to the three other robberies.
Honeysucker was convicted in February following a four-day jury trial, during which Henry cooperated with federal authorities and testified against Honeysucker. At Honeysucker’s sentencing, Chief U.S. District Court Judge Robert J. Jonker expressed relief that no one was killed during the robbery spree and admonished Honeysucker for causing “real human toll” by robbing tellers at gunpoint. Chief Judge Jonker was particularly struck by one teller’s testimony that during the robbery the thought flashed through her mind that she wouldn’t see her child again.
In announcing the sentences, U.S. Attorney Birge stated, “Instead of working for their money, these brazen criminals used a loaded pistol to threaten and steal from those trying to earn an honest living. They were identified and apprehended so they could be brought to justice thanks to the outstanding work of our partners at the Battle Creek Police Department, Lansing Police Department, and Eaton County Sheriff’s Department and the Federal Bureau of Investigation and Chicago Police Department.”
“This defendant committed four brazen armed robberies that terrorized innocent victims and endangered lives. The sentences handed down in this case should serve as an example to others – if you rob any kind of business with a firearm in Michigan, law enforcement at all levels will work together to bring you to justice,” said Timothy Waters, Special Agent in Charge of the FBI in Michigan.
This case was prosecuted by Assistant U.S. Attorneys Patrick Castle and Daniel Mekaru, and investigated by the Federal Bureau of Investigation, Battle Creek Police Department, Lansing Police Department, Eaton County Sheriff’s Department, and Chicago Police Department.
September 30, 2019 – $17,000 Approved Cash on W. Columbia Ave. Battle Creek, Michigan###
Third and Final Defendant Pleads Guilty to Conspiring to Provide Material Support to ISISRead the Press Release
Today, Mohamed Haji, 28, of Lansing, Michigan, pleaded guilty to conspiring to provide material support to a designated foreign terrorist organization, namely the Islamic State of Iraq and al-Sham, aka ISIS. In January 2020, his co-defendants Muse Muse and Mohamud Muse pleaded guilty to the same offense.
According to court documents, between December 2018 and January 2019, co-defendant Muse Muse coordinated with an individual he believed to be a Somali ISIS fighter to wire funds to be used to purchase airline tickets for travel to Mogadishu, Somalia, where he believed he would meet an ISIS representative. All three defendants: picked up money to provide Muse Muse the funds to travel to join ISIS, pledged allegiance to ISIS in recorded videos, and submitted their videos to individuals they believed were associated with ISIS. Additionally, throughout the conspiracy, all three defendants participated in numerous discussions regarding traveling overseas to join ISIS and even adopted fighter aliases by which they would be known when fighting for ISIS.
On Jan. 21, 2019, special agents of the FBI and members of its Joint Terrorism Task Force (JTTF) arrested defendant Muse Muse at the Gerald R. Ford International Airport in Grand Rapids, after he checked in for a flight to the first of a series of destinations on his way to Mogadishu with the goal of joining ISIS. Shortly thereafter, his brother Mohamud Muse and cousin Mohamed Haji were arrested as co-conspirators.
Muse, Mohamud Muse and Haji were indicted by a federal grand jury on multiple charges, including conspiracy to provide material support to a designated foreign terrorist organization. This federal offense required the government to prove that Haji: (1) agreed with one or more individuals to provide material support or resources (which includes personnel) to ISIS, a foreign terrorist organization; (2) knew that ISIS was a designated foreign terrorist organization or had engaged or engages in terrorist activity; and (3) is a U.S. national or some part of the offense occurred in the United States. Haji admitted each of those elements of the crime. He is scheduled to be sentenced on Sept. 22 and faces a maximum of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General John C. Demers of the Justice Department’s National Security Division and U.S. Attorney Andrew Birge for the Western District of Michigan made the announcement.
The FBI is investigating the case, with valuable assistance provided by the Michigan State Police, Kent County Sheriff’s Office, Eaton County Sheriff’s Office, Michigan State University Police Department, Lansing Police Department, Grand Rapids Police Department, Grand Rapids Airport Police, the U.S. Marshals Service, and the Department of Homeland Security's Transportation Security Administration, Federal Air Marshals, and U.S. Customs and Border Protection.
Trial Attorney David Smith of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorneys Clay M. West and Christopher M. O’Connor of the Western District of Michigan are prosecuting the case.
Third and Final Lansing Defendant Convicted of Terrorism ChargeRead the Press Release
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that three residents of Lansing, Michigan have been convicted of conspiring to provide material support to a designated foreign terrorist organization, namely the Islamic State of Iraq and al-Sham (“ISIS”). Today, the third and final defendant in the case, Mohamed Haji, pleaded guilty to the federal crime of conspiring to provide material support to a designated foreign terrorist organization. In January 2020, his co-defendants Muse Muse and Mohamud Muse pleaded guilty to the same offense.
On January 21, 2019, special agents of the Federal Bureau of Investigation (FBI) and members of its Joint Terrorism Task Force arrested defendant Muse Muse at the Gerald R. Ford International Airport in Grand Rapids, Michigan, after he checked in for a flight to the first of a series of destinations on his way to Mogadishu, Somalia, with the goal of joining ISIS. Shortly thereafter, his brother Mohamud Muse and cousin Mohamed Haji were arrested as co-conspirators. According to court documents, between December 2018 and January 2019, Muse Muse coordinated with an individual he believed to be a Somali ISIS fighter to wire funds to be used to purchase airline tickets for travel to Mogadishu, Somalia, where he believed he would meet an ISIS representative. All three defendants picked up money to provide Muse Muse the funds to travel to join ISIS, all three defendants pledged allegiance to ISIS in recorded videos, and all three submitted their videos to individuals they believed were associated with ISIS. Additionally, throughout the conspiracy, all three defendants participated in numerous discussions during which they discussed traveling overseas to join ISIS and even adopted fighter aliases by which they would be known when fighting for ISIS.
Muse, Mohamud Muse, and Haji were indicted by a federal grand jury on multiple charges, including conspiracy to provide material support to a designated foreign terrorist organization. This federal offense required the government to prove that Haji: (1) agreed with one or more individuals to provide material support or resources (which includes personnel) to ISIS, a foreign terrorist organization; (2) knew that ISIS was a designated foreign terrorist organization or had engaged or engages in terrorist activity or terrorism; and (3) is a U.S. national or some part of the offense occurred in the United States. At his change of plea hearing before Chief United States District Judge Robert J. Jonker, Haji admitted each of those elements of the crime.
All three defendants will be sentenced by Chief Judge Jonker at a later date. The crime is punishable by up to 20 years in federal prison. The Court will determine the ultimate sentence to be imposed after evaluating the applicable federal Sentencing Guidelines and considering the statutory sentencing factors, including the nature and circumstances of the offense; the history and characteristics of each defendant; the seriousness of the offense; and the need to promote respect for the law, to provide just punishment, and protect the public from future crimes of each defendant.
United States Attorney Andrew Birge stated, “There is no priority higher for my Office than detecting, preventing and prosecuting terrorism. With this successful investigation and prosecution, the United States Attorney’s office and its law enforcement partners prevented these young men from assisting a dangerous international terrorist organization and held them accountable for conspiring to do so. Nearly 80 countries around the globe have committed to eliminating the threat ISIS poses. Every person and every resource bound for a terrorist organization that we intercept impacts the ability of that organization to carry out attacks here and overseas. Every conviction sends a powerful message of deterrence.”
“As this case demonstrates, the threat from foreign terrorist organizations has not ended. The FBI works every day to identify and disrupt those acting in support of these groups both in the United States and throughout the world. The FBI will continue to aggressively pursue these investigations and hold accountable those who provide material support to foreign terrorist groups,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Field Office. “The successful disruption of Muse Muse’s plan to travel overseas, and the conviction of those who aided him in that plan, is the result of the hard work and dedication of the FBI’s Joint Terrorism Task Force, which remains committed to protecting the public from terror attacks.”
The FBI’s investigation was assisted by the Michigan State Police, Kent County Sheriff’s Office, Eaton County Sheriff’s Office, Michigan State University Police Department, Lansing Police Department, Grand Rapids Police Department, Gerald R. Ford Airport Police, the U.S. Marshals Service, and the Department of Homeland Security Transportation Security Administration, Federal Air Marshals, and Customs and Border Protection.
Assistant United States Attorneys Clay West and Christopher O’Connor are prosecuting the case with assistance from the National Security Division Counterterrorism Section.
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Romanian Nationals Sentenced to Federal Prison for ATM SkimmingRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew Birge announced today that Ioan Georgel Cristian Flore, a Romanian national who is illegally present in the United States, was sentenced to 75 months in federal prison for his role in an ATM skimming fraud that resulted in $587,529.50 in losses to financial institutions located in Michigan, Nebraska, and Iowa.
Flore pled guilty to conspiracy to commit financial institution fraud and aggravated identity theft in November 2020. Flore admitted that, between September 2019 and May 2020, he engaged in a conspiracy to defraud financial institutions by stealing money from federally insured financial institution customer accounts in Michigan and elsewhere. The members of the conspiracy accomplished the fraud by obtaining devices and cameras that were designed to secretly record account data, including account numbers and personal identification numbers, from debit and credit cards that bank and credit union customers used to withdraw cash, make deposits, and conduct other transactions. The conspirators installed those devices on automated teller machines (ATMs), and then retrieved the devices after they had recorded account data of bank and credit union customers. These devices are commonly called ATM skimming devices. Thereafter, the conspirators, including the Defendant, used the stolen account data of the bank and credit union customers to unlawfully create and possess access devices, including re-encoded cards, and then used those access devices to fraudulently withdraw cash from the accounts of the bank and credit union customers. Flore was illegally present in the United States having overstayed a visa.
At the sentencing hearing in Lansing, Michigan, United States District Judge Hala Y. Jarbou also imposed two years of supervised release following imprisonment and a restitution order of $587,529.50. Additionally, Flore was ordered to forfeit $16,230 in U.S. currency that was seized from his vehicle during a traffic stop in Indiana when the two were found in possession of tools used to commit ATM skimming.
Flore’s co-conspirator, Marius Adrian Mastan, also a citizen of Romania and a legal resident of Illinois, was sentenced by the Court on March 25, 2021, to serve 53 months in prison for his role in the scheme, ordered to repay $587,529.50 to the 17 victims, and forfeit the $16,230 in seized currency.
U.S. Attorney Andrew Birge stated, “This is the third crew of ATM skimmers using the same modus operandi that my office has prosecuted in the last three years. We are relentless in our pursuit of lengthy prison sentences for anyone who steals and uses other people’s debit and credit card numbers and PIN numbers, which harms both the cardholder and the financial institution that ultimately suffers the loss. At the same time, residents who use ATMs and other debit and credit card readers should remain vigilant in detecting evidence of tampering or anything unusual about the machine. If you suspect tampering has occurred, do not use it and report it immediately.”
“Innocent people in this case had their personal information taken and their money stolen by criminals who believed there would be few consequences for their crimes. The lengthy sentences in this case send a message to anyone engaged in this type of theft that the FBI, along with our federal, state, and local partners will find them and hold them accountable,” said Timothy Waters, Special Agent in Charge of the FBI in Michigan. “We encourage anyone who believes they may have been a victim of identity theft to report it to the FBI or their local law enforcement agency.”
The investigation was conducted by the Federal Bureau of Investigation in Kalamazoo and St. Joseph, Michigan; the Michigan State Police; the Hobart Indiana Police Department; and the U.S. Customs and Border Protection. The investigation of other co-conspirators is ongoing.
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