Western District of Michigan
Press releases recorded for this federal judicial district.
Vermontville Man Pleads Guilty to Sexually Exploiting ChildrenRead the Press Release
GRAND RAPIDS, MICHIGAN — Dustyn Wayne Olmstead, 31, of Vermontville, Michigan, pleaded guilty to sexual exploitation and attempted sexual exploitation of children, and distributing child pornography, U.S. Attorney Andrew Birge announced today. Sentencing before Chief U.S. District Judge Robert J. Jonker will be on December 1, 2020. At sentencing, Olmstead will face a mandatory minimum of 15 years’ imprisonment and a combined maximum of 50 years’ imprisonment, restitution, fines, and other penalties.
Olmstead pleaded guilty to using text-messaging services to communicate with multiple minors, including a 13-year-old girl from Allegan County and a 14-year-old girl from Ottawa County. Olmstead manipulated one girl into sending him naked pictures of herself and he tried to get the other to do the same. As part of the process to desensitize the girls to sexual material, Olmstead sent a video of a girl, approximately 9 years old, engaging in a sex act with an adult male. Olmstead communicated with numerous individuals he believed to be children. Persons who believe that they or someone they know may have been a victim of Olmstead’s should call the FBI at (616) 456-5489.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, the Internet Crimes Against Children task force (ICAC), federal, tribal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.
This case is being investigated by the Allegan County Sheriff's Office and the FBI working together as part of the West Michigan Based Child Exploitation and Human Trafficking Task Force (WEBCHEX) and prosecuted by Assistant U.S. Attorney Daniel Mekaru.
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Former Employee Pleads Guilty to Stealing Company Property and Selling It on EbayRead the Press Release
GRAND RAPIDS, MICHIGAN - Laura Arlene Barnett, 53, of Allegan, Michigan, pleaded guilty to the interstate transportation of stolen property, U.S. Attorney Andrew Birge announced today. The sentencing before Chief U.S. District Judge Robert J. Jonker is scheduled for November 30, 2020. At sentencing, Barnett will face up to 10 years’ mprisonment. As partof her plea agreement, Barnett agreed to pay restitution of $413,903.38 to repay her employer for the parts and supplies that she stole.
Barnett was an employee of Perrigo, a global consumer self-care company that manufactures over-the-counter and branded products. Barnett worked as a Maintenance Repair and Operations Coordinator in Perrigo’s Allegan maintenance department. She was responsible for ordering and processing parts used in the manufacturing facilities. Barnett used her position to gain access to equipment, parts, and supplies that the company used to operate packing machinery. She stole more than 470 items of equipment, parts, and supplies worth approximately $413,903.38 and sold the items on eBay.
This case was investigated by the FBI and the Allegan County Sheriff’s Office, and prosecuted by Assistant United States Attorney Daniel Mekaru. Perrigo has fully cooperated throughout the process.
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Federal Court Detains Grand Rapids Man Charged by U.S. Attorney for Being A Felon in Possession of A FirearmRead the Press Release
GRAND RAPIDS, MICHIGAN – United States Attorney Andrew Birge announced today the latest charges and a denial of bond that are part of his office’s larger efforts to address gun violence. A federal grand jury returned an indictment charging Antwine Chamberlain-Fields for being a felon in possession of a firearm and ammunition in Grand Rapids. Chamberlain-Fields faces up to ten years’ incarceration if convicted of this crime. United States Magistrate Judge Ray Kent denied Chamberlain-Field’s request for bond, stating that the proliferation of illegal weapons in the district is a key factor in the surge of violence.
On July 22, 2020, Grand Rapids Police encountered Chamberlain-Fields in possession of multiple rounds of ammunition. Officers later also located a loaded .45 caliber handgun hidden inside his vehicle. At his bond hearing, Magistrate Judge Kent underscored the defendant’s illegal possession of a firearm and ammunition put the defendant, his family, and the community at serious risk of harm. In rendering his decision to detain Mr. Chamberlain-Fields, the judge highlighted the fact that an address associated with defendant was the location of a recent brazen drive-by shooting, resulting in the injury of a teenage girl.
"In a city stunned by the sudden spike of traumatic injuries and deaths from shootings over the last few months, this arrest highlights the dedicated work of the Project Safe Neighborhoods Task Force and GRPD to reduce gun crime in Grand Rapids," commented U.S. Attorney Birge.
An unprecedented surge of violence, particularly shootings, has plagued Grand Rapids. In order to combat this increase in violent crime, state, local, and tribal police departments and the Department of Justice (DOJ) are working together through the Project Safe Neighborhoods (PSN) initiative to identify the individuals responsible. The PSN initiative focuses on those driving violent crime rates not only in Grand Rapids, but also in cities across the Western District of Michigan. For example, in April, the Kalamazoo Department of Public Safety arrested two men found in possession of loaded firearms. Both of these men were suspects in recent shootings. A federal grand jury indicted these men with federal firearm and ammunition offenses, and they are now facing ten or more years in a federal prison.
PSN is a powerful tool to combat this surge in violence. The program brings together federal, state, local and tribal law enforcement officials and prosecutors to identify the most violent criminals in the community and develop effective and efficient strategies to bring these violent individuals to justice and to prevent future gun crime from taking root. The PSN initiative recognizes the importance of lay community relationships and supports through grant awards locally tailored crime prevention efforts.
The public is reminded that the criminal complaints and indictments in the aforementioned cases are allegations and not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
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U.S. Attorney's Office Celebrates the 30th Anniversary of the Americans with Disabilities ActRead the Press Release
GRAND RAPIDS, MICHIGAN – 2020 marks the 30th Anniversary of the Americans with Disabilities Act (ADA). This landmark civil rights legislation has impacted the lives of millions of people with disabilities in the United States by prohibiting discrimination based on disability and guaranteeing equal opportunity in all aspects of community life.
“Since President George H.W. Bush signed the ADA into law on July 26, 1990, this nation has made great strides towards improving the lives of Americans with disabilities, but there is still much work to do,” Andrew Birge, United States Attorney for the Western District of Michigan said. “On this 30th Anniversary, my Office reaffirms its commitment to protecting the rights of people with disabilities and working to achieve equal opportunity, increased access and inclusion in our community.”
The U.S. Attorney’s Office for the Western District of Michigan enforces the ADA and seeks to vindicate the rights of people with disabilities throughout the district. In the past several years, the Office has increased its number of ADA investigations. These efforts have led to numerous resolutions, including voluntary corrective measures by both public and private entities to ensure compliance with the ADA. For example, as a result of the Office’s work, a health care provider revised its communication practices regarding provision of auxiliary aids to individuals who are deaf or have hearing loss, an entertainment venue established procedures for ADAaccessible online ticket sales, a lodge revised its policies and practices to accommodate service animals, and a public building modified its parking lot to ensure adequate parking access for the disabled.
The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.
The Department of Justice has a number of publications available to assist entities in complying with the ADA. For more information on the ADA and to access these publications, visit ADA.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TTY). The Department also encourages anyone who believes that their disability rights have been violated to file a complaint at https://civilrights.justice.gov/report/
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U.P. Methamphetamine Dealer Sentenced to 21 Years in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced that Rodgers Lee Shealy was sentenced this week to 21 years of imprisonment by Chief U.S. District Judge Robert J. Jonker. Shealy pled guilty in August 2019 to conspiracy to distribute 50 grams or more of methamphetamine. Upon release, Shealy will be supervised for eight years.
Law enforcement’s investigation showed that between approximately 2017 and February 2019, when Shealy was arrested, Shealy obtained methamphetamine and heroin from Pontiac, Michigan and Oklahoma. He then transported the drugs to various locations in the Upper Peninsula, including Marquette County, Baraga County, and Menominee County using a number of associates.
The case was investigated by KIND, UPSET, HSI and the BIA, and prosecuted by Assistant U.S. Attorney Hannah N. Bobee.
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Former Sault Ste. Marie Man Sentenced to Seven Years in Prison for Abusive Sexual Contact with A MinorRead the Press Release
GRAND RAPIDS, MICHIGAN —U.S. Attorney Andrew Birge announced today that Allen Michael Foster, 29, was sentenced in U.S. District Court to 84 months imprisonment for abusive sexual contact with a minor under the age of 12 years. As part of his sentence, Foster will be on supervised release for six years following his incarceration and be required to register as a sex offender.
The charge arose from an investigation initiated in 2016 that determined that between 2012 and 2014, Foster sexually abused a minor who was residing in his household on the Sault Ste. Marie reservation.
The Door County Sheriff’s Department, Sault Tribe Law Enforcement Department, and the FBI investigated the case. Assistant U.S. Attorney Hannah N. Bobee prosecuted the case.
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Physician Sentenced to Prison for Obstructing Tax InvestigationRead the Press Release
Richard MacAuley, M.D., lied to the IRS, withheld information, and provided a false document to impede an investigation of his company, Sleep Diagnostics of Michigan, P.C.
GRAND RAPIDS – U.S. Attorney Andrew Birge announced today that Richard MacAuley, M.D., 74, of Farmington Hills, Michigan, was sentenced to two years of imprisonment by U.S. District Judge Janet T. Neff. In January 2020, Dr. MacAuley pleaded guilty to corruptly endeavoring or obstruct and impede the due administration of the internal revenue laws, including by misleading IRS officers, withholding records from the IRS, and providing a false document in response to an IRS summons.
In December 2017, the IRS was investigating Dr. MacAuley’s chain of sleep study clinics, Sleep Diagnostics of Michigan, P.C. (“SDM”), for failing to pay over $500,000.00 in federal payroll taxes. The IRS sought to determine whether there was any basis to transfer and collect SDM’s outstanding taxes from an Okemos-based provider, Advanced Sleep Diagnostics of Michigan, P.C. (“ASDM”). While Dr. MacAuley was ASDM’s owner on paper, he withheld the ownership document from the IRS and falsely denied any relationship between the companies. Dr. MacAuley then falsely claimed that he sold SDM’s assets to ASDM in 2016. When the IRS issued a summons for the sales contract—a document that did not exist—two individuals created a fraudulent and backdated Asset Purchase Agreement for Dr. MacAuley to give the IRS. Dr. MacAuley signed the fake Asset Purchase Agreement and gave it to the IRS in May 2018 along with a cover letter claiming that the agreement was “in effect as of July 18, 2016.”
In imposing the sentence, Judge Neff noted that Americans “enjoy tremendous advantages being tax paying citizens of this country, but those advantages don’t come for free. Everyone must stand up and pay their taxes” and “tax evaders really do undermine our whole system.” Such tax evaders, Judge Neff emphasized, must know that there are “serious consequences if they are caught.”
“Dr. MacAuley obstructed the IRS’s efforts to collect over half a million dollars in payroll taxes, including tax revenue that funds the federal unemployment trust fund on which millions of Americans rely,” U.S. Attorney Birge said. “We will continue to work with our IRS partners to hold accountable those who defraud our tax system.”
“Obstructing or impeding an IRS officer or the administration of the Internal Revenue laws is a serious crime,” said Sarah Kull, Special Agent in Charge of IRS-Criminal Investigation for the Detroit Field Office. “Withholding material records and providing false or misleading documents to the IRS undermines the integrity of our financial system and will not be tolerated.”
This case was investigated by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Adam B. Townshend represented the United States.
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Grand Rapids Man Sentenced to 42 Years for Stealing Guns, Witness Retaliation, Arson, and Drug CrimesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. District Judge Janet T. Neff sentenced Charles Edward Skipp of Grand Rapids to 42 years in prison, announced U.S. Attorney Andrew Birge. Skipp pleaded guilty to 10 felony offenses in February 2020, which included being a felon in possession of firearms, stealing firearms from a licensed firearm dealer, retaliating against a witness, discharging a firearm during and in relation to a crime of violence, knowing transfer of firearms for use in a crime of violence, aiding and abetting retaliating against an informant, aiding and abetting arson in the commission of a federal felony, attempted possession with intent to distribute heroin, discharging a firearm during and in relation to a drug trafficking crime, and knowing transfer of a firearm for use in a drug trafficking crime. When imposing the 42 year sentence, Judge Neff referred to Skipp as a “one man crime spree.”
Skipp stole 89 guns from Family Farm & Home in Cedar Springs in 2017. He attempted to cover his tracks by intimidating and retaliating against a witness to the theft, which included shooting at the witnesses’ house and later setting it on fire. Skipp also used one of the stolen guns to rob and shoot a drug dealer. Many of the stolen firearms remain unaccounted for and law enforcement is still attempting to locate them. Before his latest crimes, Skipp had prior convictions for carrying a concealed weapon, reckless discharge of a firearm causing injury, armed robbery, being a felon in possession of a firearm, and domestic assault.
“This sentence represents good news for the community, which is much safer with Mr. Skipp in prison. And the 42-year sentence sends an unmistakable message to anyone else who might embark on a way of life in which one dangerous crime begets another and so on: Your spree will end with you in prison for decades; so don’t even start,” commented U.S. Attorney Birge.
“We often underestimate the enormous impact one lawless person can have in our community,” stated James Deir, Special Agent in Charge for ATF’s Detroit Field Division. “We all deserve to feel safe working and living in our community. Through hard work with our law enforcement partners in the Grand Rapids area, we have removed this violent criminal from our streets, so that we all can feel safer going about our daily lives.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives worked with the Grand Rapids Police and Kent County Sheriff’s Departments to investigate this case as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. As part of this initiative, the U.S. Attorney’s Office, county prosecutors’ 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 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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Bank Robber Sentenced to 216 Months' ImprisonmentRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced that David Wilson Floyd, formerly of Michigan City, Indiana, was sentenced to serve 216 months’ imprisonment by U.S. District Judge Paul L. Maloney. Floyd pled guilty in March 2020 to armed bank robbery and attempted bank robbery. Upon release, Floyd will be supervised for 3 years.
On September 9, 2019, Floyd entered the New Buffalo Savings Bank, located in Three Oaks, Michigan, wearing a clear plastic mask. Floyd pointed a handgun at the teller and stated “Get your money out.” Floyd stole $11,344 U.S. currency and fled. On September 18, 2019, Floyd drove to the G.W. Jones Exchange Bank, located in Edwardsburg, Michigan, again wearing a mask and carrying a gun. Floyd attempted to open the door to the bank, but, because the bank closed at noon, the doors were locked. Employees of the bank reported the attempt.
The Federal Bureau of Investigation (FBI), working with local Indiana and Michigan authorities, investigated and determined Floyd committed the September 9, 2019, armed bank robbery, the September 18, 2019, attempted bank robbery, as well as six additional robberies of convenience stores and gas stations in northern Indiana and southwestern Michigan between June 2019 and September 2019. Floyd was ordered to pay restitution in the amount of $12,294.
“Mr. Floyd did not get much cash, but he did inflict a lot of terror on the employees,” said U.S. Attorney Birge. “And for that he earned the 18 years in prison he received. Crime does not pay in West Michigan.”
“Thanks to the great cooperative work of federal, state, local and Tribal law enforcement agencies, David Floyd is off the street and won’t pose a threat to our communities for years to come,” said Steven M. D’Antuono, Special Agent in Charge of the FBI in Michigan.
The case was investigated by the FBI, and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Kristin M. Pinkston represented the United States.
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Peshawbestown Resident Found Guilty of Drug Distribution, Assault, Contempt, and, Along with A Cohort, Conspiracy to Tamper with A WitnessRead the Press Release
GRAND RAPIDS, MICHIGAN — A federal jury found Melvin James Harris, 46, of Peshawbestown, Michigan, and Vanessa Louis Hunter, 45, of Rockford, Illinois, guilty of conspiring to tamper with a witness in a federal trial. A third member of the conspiracy, Corey John Raphael, pled guilty to conspiracy to witness tamper earlier this year. The jury also convicted Harris of distributing cocaine, assaulting a federal officer, contempt of court, and witness tampering. Harris faces up to life in federal prison, and Hunter faces up to 20 years.
The evidence at trial showed that on August 14, 2019, Harris sold cocaine to an individual who was assisting police with narcotics investigations. Harris chose the location for the sale – a spot within the Grand Traverse Band of Ottawa and Chippewa Indians’ community, commonly known as Peshawbestown. Four days later, Harris assaulted a federal officer who was attempting arrest him.
In September 2019, Harris was charged in federal court with distributing cocaine and assaulting an officer. After he learned the identity of the person who had assisted police with the narcotics investigation, Harris conspired with Hunter, Raphael, and others to tamper with that witness, in an effort to discourage the witness from testifying against him. Harris ultimately succeeded in contacting the witness through intermediaries and asked the witness not to go to court. Harris also disseminated the witness’s name and other personal information in violation of a court order. He used the jail’s phone system to do so, and he directed his co-conspirators and associates to further disseminate the information through Facebook and other means. Additional charges against Harris, Hunter, and Raphael soon followed.
"This verdict sends a clear message to those who would try to subvert our justice system by violating court orders and intimidating witnesses," said U.S. Attorney Andrew Birge.
This case was jointly investigated by the Traverse Narcotics Team, Drug Enforcement Administration, Grand Traverse Band Tribal Police Department, Leelanau County Sheriff’s Office, and Michigan State Police.
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Opium Smuggler Sentenced to 42 Months' ImprisonmentRead the Press Release
MARQUETTE, MICHIGAN — U.S. Attorney Andrew Birge announced that Abdolnasser Mahmoudikanesbi, formerly of Gatineau, Quebec, was sentenced today to serve 42 months’ imprisonment by Chief U.S. District Judge Robert J. Jonker. Mahmoudikanesbi pled guilty in February 2020 to possession with intent to distribute opium. Upon release, Mahmoudikanesbi will be supervised for 3 years.
On December 7, 2019, Mahmoudikanesbi crossed into the United States at Sault Ste. Marie, where he encountered Customs and Border Protection (CBP). Mahmoudikanesbi told CBP that he was transporting towels, but an x-ray of his rental truck revealed items in the cargo area that were inconsistent with towels. Inside the vehicle, investigators discovered approximately 100 kilograms of unrefined opium paste.
Homeland Security Investigations (HSI), working with Canadian authorities, then took over the investigation. HSI determined the opium had come from Pakistan via an international shipping container with a false bottom. After the shipping container made it to the Port of Montreal, Mahmoudikanesbi and an associate cut the false bottom out of the container and moved the drugs to a rented warehouse in Montreal. Mahmoudikanesbi then had the opium put on a rental truck, which he drove across Ontario and into the United States.
“Trafficking illegal narcotics across international borders is a quintessential federal concern and federal law enforcement remains ever vigilant at our borders, whether at the southwest border or the bridge at Sault Ste. Marie,” commented U.S. Attorney Birge.
“HSI’s core mission is to prosecute cross border criminal activity and bring to bear its unique investigative authorities and international resources,” said Vance Callender, special agent in charge of HSI Detroit. “This case in particular and by its very nature, stretches across the globe and impacts several countries. Global criminal networks attempt to exploit international borders for profit daily. These types of investigations are some of the most complex known to law enforcement.”
“CBP officers are constantly on the lookout for smugglers and criminals attempting to cross our borders,” said Port Director Patrick Wilson. “Mr. Mahmoudikanesbi’s sentencing today demonstrates the important relationships we have with our federal law enforcement partners in seeking justice.”
The case was investigated by HSI, CBP, and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorneys Theodore J. Greeley and Kristin M. Pinkston represented the United States.
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Kalamazoo Methamphetamine Dealers Plead Guilty to Drug Trafficking and Gun CrimesRead the Press Release
GRAND RAPIDS, MICHIGAN — Two Kalamazoo men face up to life in prison following their guilty pleas to multiple drug and firearms offenses, announced U.S. Attorney Andrew Birge. Trevon Gates (age 21) and Deonte Gates (age 19) were scheduled for trial on July 14, 2020 and instead pled guilty to their charges, which included conspiring to distribute methamphetamine and possessing firearms in furtherance of the methamphetamine conspiracy.
The Gates brothers partnered to sell methamphetamine in Kalamazoo, Holland, Plainwell, and Otsego during 2018 and 2019. The execution of a search warrant at the defendants’ home uncovered guns, money, methamphetamine, and drug packaging material. The investigation revealed that the brothers were constantly armed and even coerced at least one other person to deliver methamphetamine on their behalf or face harm.
“No one should view selling methamphetamine or other addictive drugs on the street as a way to raise one’s station in life,” commented U.S. Attorney Birge. “Taking advantage of addicts is shameful, destroys families and brings communities down. People who not only sell methamphetamine but also use guns to further their efforts pose an enhanced threat to safety in their communities. Our office is committed to investigating and prosecuting those individuals to the full extent of the law.”
Chief Karianne Thomas of the Kalamazoo Department of Public Safety agreed: “The illegal use and distribution of methamphetamine continues to be a scourge in our community and is responsible for driving a large amount of crime. This investigation showed that these two individuals had an extensive involvement in methamphetamine distribution in not just Kalamazoo, but throughout southwest Michigan. Their propensity to employ many different firearms to further their drug trafficking network made them particularly dangerous to the community. This is another excellent example of the outstanding partnership and cooperation between the Kalamazoo Department of Public Safety and our state and federal law enforcement partners to include the Michigan State Police, U.S. Attorney’s Office for the Western District of Michigan, U.S. Drug Enforcement Administration (DEA) and the Bureau of Alcohol Tobacco and Firearms (ATF).”
Michigan State Police Lieutenant Andrew Foster of the West Michigan Enforcement Team commented, “We appreciate the work done by the U.S. Attorney’s Office with this investigation. This case brought to justice individuals responsible for trafficking large quantities of crystal methamphetamine into west Michigan. It is just another great example of the partnership WEMET has with our federal law enforcement and local agencies throughout west Michigan.”
Trevon Gates is subject to a mandatory minimum term of 15 years in prison, while Deontae Gates is subject to a mandatory minimum term of 10 years in prison. Both brothers will be sentenced later this year.
This case was investigated by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kalamazoo Department of Public Safety, Kalamazoo Valley Enforcement Team, the Holland Police Department, and the West Michigan Enforcement Team.
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Attorney General William Barr Assesses the Threats Posed by the Global Ambitions of the People's Republic of ChinaRead the Press Release
GRAND RAPIDS, MICHIGAN – United States Attorney General William Barr addressed an audience of corporate and academic leaders at the President Gerald R. Ford Museum in Grand Rapids, Michigan, on the threats posed by the People’s Republic of China to American business and academic interests. Following his speech, Deputy Assistant Attorney General Adam Hickey of the National Security Division, and United States Attorneys Andrew B. Birge, Western District of Michigan, and Matthew Schneider, Eastern District of Michigan, discussed the Department’s China Initiative, a program designed to counter those threats and protect American business and ingenuity.
Following Attorney General Barr’s speech and the presentation on the China Initiative, Deputy Assistant Attorney General Hickey and U.S. Attorneys Birge and Schneider took questions from attendees. Also available to the audience were Special Agent in Charge Steven D’Antuono of the Detroit Field Division of the FBI, Special Agent in Charge Dan Clutch of the Department of Commerce-Office of Export Enforcement-Chicago Regional Office, and Deputy Special Agent in Charge Angie Salazar of Immigration and Customs Enforcement-Homeland Security Investigations-Detroit Division.
“Attorney General Barr offered a clear-eyed assessment of the threats we face from the People’s Republic of China and what it will take for our country to respond,” said U.S. Attorney Andrew Birge. “The initiative we discussed after his remarks presented the audience with a similarly stark picture and the law enforcement resources we can make available to help protect our businesses and institutions and, ultimately, our national security.”
“There is no doubt in my mind that the largest economic, military, and geopolitical threat to the United States is the communist government of the People’s Republic of China. It is time that Michigan businesses recognize the China threat with open eyes,” said U.S. Attorney Matthew Schneider. “Our businesses must realize they are dealing with a regime whose goal is often to rob them of their business information, replicate it in China, and then kick businesses out of the marketplace.”
“Michigan, and particularly the Grand Rapids area, has long been synonymous with advanced manufacturing and American ingenuity. That is why it made perfect sense for the Attorney General to come here to deliver his policy speech about the threats American industry faces from the Chinese Communist Party,” said Adam S. Hickey, Deputy Assistant Attorney General of the National Security Division. “This dialogue with Michigan’s corporate and academic leaders was a terrific success, because it provided them with an accurate view of the threat landscape, which should better prepare them to protect themselves.”
A special thanks to Elaine Didier, Director of the Gerald R. Ford Museum and to the corporate and academic institution leaders who attended.
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Traverse City Physician Assistant Surrenders DEA Registration and Agrees to Life-Time Ban on Prescribing Controlled SubstancesRead the Press Release
GRAND RAPIDS, MICHIGAN — James J. Berg, P.A., has agreed to resolve allegations that he violated the Controlled Substances Act by writing illegitimate prescriptions for controlled substances, U.S. Attorney Andrew B. Birge announced today. As part of the settlement, Mr. Berg agreed to surrender his U.S. Drug Enforcement Administration (DEA) registration that allowed him to prescribe controlled substances, to never reapply for a DEA registration in the future, and to pay a civil penalty of $50,000.
This settlement resolves allegations that Mr. Berg, the co-owner and operator of Hope Clinic for Muscle & Joint Pain, PLLC (Hope Clinic), a pain management clinic in Traverse City, wrote numerous prescriptions without a legitimate medical purpose and outside of the usual course of professional practice. The United States alleges that Mr. Berg prescribed large quantities of opioids to patients well above national guidelines for treating patients with chronic pain and despite multiple red flags indicating that the prescriptions were not legitimate. These red flags included patients traveling long distances, failing multiple urine drug screen tests, violating Hope Clinic’s pain management agreements, and displaying other conduct indicative of diversion. Mr. Berg also prescribed opioids concurrent with other controlled substances, such as benzodiazepines and muscle relaxers, resulting in a dangerous cocktail.
“For several years, Mr. Berg recklessly prescribed high doses of opioids in a manner that endangered patients and contributed to the ongoing opioid epidemic,” said U.S. Attorney Birge. “This settlement ensures that Mr. Berg will no longer be in a position to prescribe controlled substances and serves as an example of our office’s efforts to work with the DEA and other law enforcement to use all tools necessary to enforce compliance with controlled substance prescribing laws in Traverse City and the rest of Western Michigan.”
“To have a medical professional, who is fully aware of the effects of controlled substances, abusing his privileges is a total betrayal of his profession and the public trust,” said DEA Detroit Field Division Special Agent in Charge Keith Martin. “Teamwork at all levels of law enforcement was instrumental in this investigation.”
This case was investigated by the DEA and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorneys Ryan D. Cobb and Andrew J. Hull represented the United States.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
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Local Methamphetamine Dealer Sentenced to 324 Months' ImprisonmentRead the Press Release
MARQUETTE, MICHIGAN — Jonathan Collins, 41 years old, was sentenced on July 10, 2020, to serve 324 months’ imprisonment by U.S. District Judge Paul L. Maloney. Collins pled guilty in December 2019 to possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Upon his release, Collins will be subject to 5 years of supervision.
Marquette City Police pulled over Collins’s vehicle in November 2018. During that encounter, investigators found approximately 50 grams of methamphetamine in the car and a double-edged dagger concealed in the driver-side support handle. The Upper Peninsula Substance Enforcement Team (UPSET) then took over the investigation and learned that Collins had been making frequent trips to the Grand Rapids area and had brought ounces of crystal methamphetamine back to the Upper Peninsula for redistribution. After being charged by the Marquette County Prosecuting Attorney’s Office and being released on bond, Collins conspired to obtain additional methamphetamine and made threats against a co-conspirator. The U.S. Attorney’s office charged Collins in August 2019.
District Judge Maloney imposed an enhanced sentence in this case based on several factors, including Collins’s obstructing justice by posting a statement online calling a co-conspirator a “snitch” and attaching a copy of the co-conspirator’s statement to police. Judge Maloney concluded a substantial term of incarceration was necessary because of Collins’s actions toward the co-conspirator and the damage crystal methamphetamine is doing to Michigan and the Upper Peninsula more specifically.
“As long as methamphetamine distribution continues to be a problem in the Upper Peninsula, my office will continue to work with our federal and local law enforcement partners to prosecute those who would otherwise go undeterred and keep bringing this terrible drug into our northernmost communities,” said U.S. Attorney Andrew Birge.
The U.S. Attorney’s Office, Marquette County Prosecuting Attorney’s Office, UPSET, and Marquette City Police Department worked together to ensure Collins was brought to justice
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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 Working Together to Stop Violent Crime and Make Their Neighborhoods Safer
GRAND RAPIDS, MICHIGAN –United States Attorney Andrew Birge announced today that the Department of Justice has allocated a total of over $192,082 to the Western District of Michigan Project Safe Neighborhoods (PSN) grant for the year 2020. The goal of the PSN program is to reduce and prevent violent crime by supporting a combination of community-based prevention programs and evidence-based law enforcement efforts in areas identified as the most at-risk through data collection and analysis.
A committee of local prosecutors and law enforcement chiefs from Battle Creek, Benton Harbor, Kalamazoo, Grand Rapids, Lansing, and Muskegon/Muskegon Heights choose how to allocate the funds. The committee has focused on funding programs where law enforcement works with community members and non-governmental organizations to prevent violence, build strong community/law enforcement relations, and provide alternative opportunities and activities for those who might otherwise engage in violence. For example, last year the PSN grant funded an advocate to assist victims of violence and their families to navigate the justice system in Battle Creek; a community outreach worker to intercede with violent offenders on behalf of Kalamazoo’s innovative Group Violence Intervention program; and a series of midnight basketball tournaments in which Lansing Police Department members play alongside community members to help build positive relationships.
“With their choices on how to allocate the grant money, the committee of law enforcement leaders embrace a holistic, community partnership-building approach to reducing violent crime,” commented U.S. Attorney Birge.
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 in our district. 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 success of this program.
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U.S. Attorneys Announce Appointment of Michigan's First Missing and Murdered Indigenous Persons CoordinatorRead the Press Release
GRAND RAPIDS, MICHIGAN — Andrew Birge and Matthew Schneider, the U.S. Attorneys for the Western and Eastern Districts of Michigan respectively, announced the appointment of Joel Postma to serve as the Missing and Murdered Indigenous Persons (MMIP) Coordinator for the two districts. As the MMIP Coordinator for both districts, Mr. Postma will respond to MMIP issues affecting each of the 12 Tribes in the state.
Mr. Postma is one of ten such Coordinators around the country appointed by the Department of Justice. He will gather reliable data to identify MMIP cases connected to Michigan, conduct outreach with Tribal communities to understand the challenges revealed through past experience, coordinate with Tribal, federal, state and local law enforcement in the development of protocols and procedures for responding to and addressing MMIP, provide training and assistance and promote improved data collection and analyses throughout Michigan. Mr. Postma will work out of the U.S. Attorney’s Office in Grand Rapids in order to facilitate meeting with each of the 12 Michigan Tribal communities, as circumstances allow.
Prior to accepting the MMIP appointment, Mr. Postma served for 25 years as an agent of the FBI. His service with the FBI included several years working cases involving missing and runaway children as well as death investigations in Indian Country in the Upper Peninsula of Michigan. He was an early and active participant in Tribal Multi-disciplinary Team (MDT) and Child Protection Team (CPT) meetings. He also established protocols for drug investigations in Indian Country and initiated a "ride-along" program to foster a better working relationship between the FBI and Tribal law enforcement.
"We are very excited to welcome Mr. Postma into this important new position designed to serve native crime victims and their families. Tribal communities have long suffered disproportionate violent crime and now the MMIP challenges in particular have caught the attention of the Department. Mr. Postma is eminently qualified to help respond to the challenges and comes recommended to us by Tribal as well as state and federal law enforcement members who know him," said U.S. Attorney Birge.
U.S. Attorney Schneider added that, "Joel Postma has outstanding qualifications, and he will be a great asset as Michigan’s Missing and Murdered Indigenous Persons Coordinator. We are pleased to have him join our team to serve and support Tribal communities and our partners in law enforcement."
On November 22, 2019, Attorney General William Barr launched a national strategy to address missing and murdered Native Americans. When establishing the MMIP Initiative, the Department of Justice made an initial investment of $1.5 million to hire MMIP coordinators to serve with U.S. Attorney’s Offices in 11 states, including Michigan. The strategy also calls for the deployment of the FBI’s most advanced response capabilities when needed, improved data collection and analysis, and training to support local response efforts.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.justice.gov/Celebrating150Years.
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Nine Michigan Residents Facing Federal Charges for Drug TraffickingRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew Birge announced today that an indictment was returned charging nine Michigan residents with trafficking methamphetamine, heroin, cocaine, and suboxone between November 2018 and June 2020. The alleged conspiracy involved current and former inmates of the Michigan Department of Corrections procuring controlled substances from Mexico and distributing them in Alger, Luce, Allegan, Berrien, Branch, Grand Traverse, Ingham, Kent, Muskegon, Ottawa, and Van Buren Counties. The charges carry varying maximum penalties, including up to life in prison for some of the defendants.
The following individuals were charged:
Name
Age
Residence
Luis Alberto Cruz
30
Detroit, Michigan
Carlos Martinez a/k/a "Los"
41
Norton Shores, Michigan
Umberto Gavier Cruz a/k/a "Diablo"
66
Covert, Michigan
Emmanuel Alfonso Ventura a/k/a "E"
28
Grand Rapids, Michigan
Rocky Joseph Krupa a/k/a "Rock"
46
Traverse City, Michigan
Jesus Cortez
40
Lansing, Michigan
Sarah Joy McBride
32
Allegan, Michigan
Cecil William Wallis
33
Twin Lake, Michigan
Arnulfo Trevino a/k/a "Nulfo"
63
Muskegon, Michigan
Further details of the investigation are available in the criminal complaints filed in United States v. Luis Alberto Cruz, No. 1:20-mj-00145 and United States v. Carlos Martinez, No. 1:20-mj-179.
The charges are the result of a combined federal, state, and local investigation conducted by the Drug Enforcement Administration, U.S. Customs and Border Protection, U.S. Postal Inspection Service, Michigan Department of Corrections, the Grand Traverse County Sheriff’s Office, and the Michigan State Police and its sponsored drug trafficking task forces: the West Michigan Enforcement Team, the Southwest Enforcement Team, and the Traverse Narcotics Team.
The charges in the superseding 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.
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Grand Rapids Woman Pleads Guilty to Wire Fraud Conspiracy in Scheme to Defraud Aliens Seeking Legal StatusRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Jessica Marie Rubio, 32, of Grand Rapids, Michigan pleaded guilty before a U.S. Magistrate Judge to one count of wire fraud conspiracy in a scheme to defraud those without legal status in the United States, in violation of 18 U.S.C. §§ 1349 and 1343. Rubio faces a maximum of 20 years’ imprisonment, 3 years’ supervised release, and a fine of $250,000 or twice the gross gain or gross loss resulting from the offense. The sentencing hearing will be held on October 1, 2020.
Rubio admitted at the plea hearing that over a six-year period in Michigan, Texas, and elsewhere, she solicited people who did not have legal status in the United States by assuming the identity of a Department of Homeland Security attorney and promised to prepare and expedite the immigration application process for them, which included the filing of numerous immigration forms to U.S. Citizenship and Immigration Services ("USCIS") and the Department of Justice - Executive Office for Immigration Review. Rubio demanded payment for her services, purported to be legitimate fees, but knew that she did not and would not ever submit these forms on her clients’ behalf. At least 15 victims in Michigan and another 15 victims in Texas fell victim to this scheme, with total loss amounts calculated at $105,245 at the time of the guilty plea.
"This reprehensible scheme targeted people attempting to comply with the immigration laws of the United States, taking advantage of their hopes at the expense of the agencies that administer those immigration laws and our country in the process," U.S. Attorney Birge commented.
Maintaining the integrity of our nation’s immigration system remains one of the top priorities for the Department of Homeland Security ("DHS"), Office of Inspector General ("OIG"). "To that end, the DHS OIG and our law enforcement partners will aggressively pursue and investigate those who disparage the reputation of the DHS or its employees. The agency has zero tolerance for those who prey upon the vulnerable who simply desire to become U.S. citizens, and will continue to work tirelessly to bring justice to those who commit such despicable acts," Acting Special Agent in Charge Todd Dennis, DHS OIG – Detroit Field Office said.
"Ms. Rubio’s conviction serves as an example to those who choose to victimize our community and undermine our nation’s legal system," said Special Agent in Charge, Shane Folden, Homeland Security Investigations ("HSI") - San Antonio Field Office. "She not only stole their money, but their American dream of obtaining legal status to remain in the United States. HSI will continue to work tirelessly with our law enforcement counterparts to investigate criminals who manipulate and exploit the legal system for their own personal gain and see that they are brought to justice."
The case was investigated by DHS OIG - Detroit Field Office, HSI - San Antonio Field Office, the Fraud Detection and National Security Directorate of USCIS – Harlingen Field Office, Texas Department of Public Safety – Harlingen Criminal Investigations Division, and the Holland Department of Public Safety. Assistant U.S. Attorney Clay M. West prosecuted the case.
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Manager of Mobile West Michigan Urological Practice Sentenced to Prison for Role in Healthcare Fraud SchemeRead the Press Release
Office Manager Mark J. Sabor Sentenced Today for Conspiracy to Commit Healthcare Fraud and Agrees to Pay Share of Civil Settlement Totaling $1.26 Million
GRAND RAPIDS,MICHIGAN — U.S. Attorney Andrew B. Birge announced today that U.S. District Judge Janet T. Neff sentenced Mark J. Sabor to two years of incarceration for his involvement in a conspiracy to commit healthcare fraud. Mr. Sabor was the manager of Urological Solutions of Michigan ("USM"), a mobile medical practice providing urological services to patients in their homes and assisted living facilities in the greater Traverse City, Grand Rapids, and Kalamazoo areas.
Judge Neff found that Mr. Sabor was complicit in several fraud schemes committed by USM, resulting in approximately $914,000 in false claims submitted by USM and paid by Medicare. These schemes included billing pelvic muscle rehabilitation ("PMR) therapy using improper—and more lucrative—diagnostic codes, billing for evaluation and management ("E&M") services that did not occur, upcoding ultrasound services, and billing for the services of an unlicensed nurse assistant. Judge Neff applied an enhancement to Mr. Sabor’s sentencing guidelines based on the fact that an administrative law judge in 2011 ruled that USM should not bill Medicare for the PMR therapy using the diagnostic codes. In imposing the prison sentence, Judge Neff emphasized the need to deter other healthcare practitioners and practice managers from cheating important government programs and to promote respect for the law.
Mr. Sabor’s conviction was part of a larger investigation of USM’s owner, Roger D. Beyer, M.D., and his wife, Susan E. Wright, N.P., J.D. Dr. Beyer was the owner of USM and Women’s Health Care Specialists, P.C. ("WHCS"), an obstetrics-gynecology practice in Kalamazoo. Ms. Wright was an employee of WHCS.
On May 15, 2020, Dr. Beyer pleaded guilty in the U.S. District Court for the Western District of Michigan to conspiracy to commit healthcare fraud and adulteration of a medical device. That same day, Ms. Wright pleaded guilty to misprision of healthcare fraud and the adulteration of a medical device. Specifically, Ms. Wright admitted that she knew that USM fraudulently billed Medicare for E&M services to patients on the same date of service as the PMR therapy, but she never informed authorities. Both Dr. Beyer and Ms. Wright are scheduled to be sentenced before Judge Neff on September 9, 2020.
In addition to their convictions, all defendants entered into civil settlements with the United States to resolve their civil liability under the False Claims Act. In total, the defendants, including the now-closed USM and WHCS practices, paid $1,260,000 for submitting or causing the submission of false claims for reimbursement to Medicare as part of numerous alleged healthcare fraud schemes. For his role in the alleged misconduct, Mr. Sabor agreed to pay a civil settlement of $150,000.
"Mr. Sabor’s misconduct in these healthcare fraud schemes was particularly egregious because USM continued to improperly bill Medicare even after it had been warned not to do so by an administrative law judge," stated U.S. Attorney Birge. "Instead of following the rules, Mr. Sabor and USM found new ways to exploit the Medicare Program of hundreds of thousands of dollars. As the Government emphasized in its sentencing memorandum, ‘If you bill the government, learn the rules; if you are audited and found to be doing something wrong, rectify your practices; if a judge tells you to stop billing improperly, stop it. And if you don’t, expect to pay back the ill-gotten gains and anticipate a prison sentence.’"
"The defendant’s conduct in this case was clearly motivated by greed," said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region ("HHS-OIG"). "Billing for services not rendered, up-coding the actual services provided, billing for unlicensed personnel; these actions demonstrate a complete disregard for the law and resulted in a criminal conviction. The OIG will continue to work with our prosecutorial and law enforcement partners to ensure that those who commit these criminal acts are held accountable."
"Today’s sentence is the result of the dedicated efforts of multiple investigative agencies and prosecutors who collaborated to protect the integrity of the Medicare program," said Steven M. D’Antuono, Special Agent in Charge of the Federal Bureau of Investigation ("FBI") in Michigan. "Health care fraud costs our country billions of dollars a year and drives up the cost of care for every single taxpayer, but especially for the disabled and elderly citizens who are entitled to the benefits this program provides."
This case was the result of a joint investigation by HHS-OIG, FBI, and the Food & Drug Administration’s Office of Criminal Investigations, in coordination with the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Raymond E. Beckering III prosecuted the criminal case, and Assistant U.S. Attorney Andrew J. Hull represented the United States in the civil case.
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Department of Justice Announces Launch of Civil Rights Reporting PortalRead the Press Release
The Western District of Michigan’s Local Hotline Continues as a Supplement to the New Portal
GRAND RAPIDS, MICHIGAN -The Department of Justice today announced the launch of the Civil Rights Reporting Portal. This new online tool will make it easier for the public to report a civil rights violation.
“The Department is committed to upholding the civil and constitutional rights of all people in the United States,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Reporting Portal will make it easier for the public to connect with us, which in turn makes us more effective at upholding these important rights. I encourage the public to use this portal to report civil rights violations.”
The new Civil Rights Reporting Portal – located at civilrights.justice.gov – will consolidate over 30 unique reporting pathways. The portal will dramatically ease the burden on victims of civil rights violations to identify the proper reporting channel. The form is fully accessible to people with disabilities. It is also available in both English and Spanish, with more languages to be added over the next year.
Western District of Michigan U.S. Attorney Andrew Birge explained that the established civil rights hotline contact for the U.S. Attorney’s Office in Grand Rapids will remain available as well, at 616-808-2004 and [email protected]. “We coordinate with the Civil Rights Division on referrals; so whether you want to reach us quickly with a concern or to actually file a report through the new portal, you will be taken seriously.”
Individuals who believe that they may have been victims of civil rights violations can learn more about their rights and how to report violations by visiting civilrights.justice.gov. If you believe that you are a victim of criminal civil rights violations, such as misconduct by law enforcement officers, hate crimes, or human trafficking, please contact your local FBI office.
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Wyoming Man Sentenced to Twenty Years for Distribution of Fentanyl Resulting in DeathRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Anthony Michael Assfy, 29, formerly of Wyoming, Michigan, was sentenced by the Hon. Robert J. Jonker to 240 months in federal prison for distributing fentanyl resulting in death. On January 30, 2020, after a three-day trial, a jury found the defendant guilty of six drug trafficking charges: delivery of fentanyl resulting in death, possession with intent to distribute fentanyl and crack cocaine, distribution of heroin and crack cocaine (three counts), and possession with intent to distribute heroin and crack cocaine.
The evidence at trial demonstrated that on August 29, 2018, Assfy sold fentanyl to a Solon Township resident who used the fentanyl and died. Upon arriving at the overdose scene, detectives from the Kent Area Narcotics Enforcement Team (KANET) found evidence that indicated Assfy was the decedent’s dealer. Law enforcement posed as the victim to set up a purchase of narcotics from Assfy on August 30, 2018. Assfy arrived at the Grand Rapids deal site and was arrested by law enforcement. In addition to the fentanyl that Assfy intended to deliver to the victim, law enforcement discovered another 36 grams of fentanyl and nearly 4 grams of crack cocaine concealed in Assfy’s possession.
After posting bond on his state charges, Assfy continued to deal heroin and crack cocaine until November 2018. He was charged for distributing heroin and crack cocaine to a law enforcement agent on three occasions during this timeframe. On November 13, 2018, law enforcement searched a residence that Assfy used as a deal location and seized another 19 grams of heroin and some crack cocaine, for which Assfy was charged.
“Fentanyl is a powerful synthetic opioid that is 80 – 100 times more potent than morphine and is cheap to produce,” said U.S. Attorney Birge. “All too often, we find fentanyl mixed together with heroin or fentanyl being passed off as heroin in our West Michigan communities. Due to fentanyl’s potency, ingestion is often deadly. Anyone who deals in a deadly drug like fentanyl should understand they face serious federal time in prison.”
This case was investigated by KANET, the Kent County Sheriff’s Department, the Kentwood Police Department, and the Drug Enforcement Administration. It was prosecuted by Assistant U.S. Attorneys Vito S. Solitro and Joel S. Fauson.
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Felon Gets 42 Months for Possessing PistolRead the Press Release
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced today that Cedric Rice, 40, of Grand Rapids, was sentenced to serve 42 months in the Federal Bureau of Prisons for being a felon in possession of a firearm. U.S. District Judge Paul L. Maloney also imposed a period of supervised release of 3 years to follow.
On April 8, 2019, Grand Rapids Police responded to a 911 call that Rice had pointed a gun at a woman and her mother. When police stopped the car carrying Rice, he jumped out and fled on foot. As he ran between houses, Rice dropped a cell phone and hid a .40 caliber Sig-Sauer pistol in a woodpile. He then ducked into a home, changed his clothes, and denied being the person with the gun. In November 2019, Rice pleaded guilty and admitted to possessing the gun.
Rice has an extensive criminal history that began in 1999 with illegally carrying a firearm in Chicago. In 2000, he was convicted of delivering cocaine. He was convicted of assault in 2002, and hindering and resisting police in 2002 and 2003. In 2007, Rice was convicted in federal court and sentenced to serve 106 months in prison for being a felon in possession of a firearm, possessing a firearm in furtherance of drug trafficking, and possessing a firearm while facing federal charges. In 2017, he was convicted of domestic violence. In sentencing Rice to 42 months’ custody, Judge Maloney expressed concern for Rice’s dangerous conduct and history of illegally possessing guns.
This case was prosecuted by Assistant U.S. Attorney Daniel Mekaru and investigated by the Grand Rapids Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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Grand Rapids Dentist to Pay $200,000 to Resolve Allegations of Illegitimate Controlled Substance PrescribingRead the Press Release
GRAND RAPIDS, MICHIGAN — Scott T. Singstock, D.D.S., has agreed to pay $200,000 to resolve allegations that he violated the Controlled Substances Act by writing illegitimate prescriptions for controlled substances, U.S. Attorney Andrew B. Birge announced today. Dr. Singstock, who during the course of the investigation by the U.S. Drug Enforcement Administration (DEA) surrendered his DEA registration that allowed him to prescribe controlled substances, also has agreed to a five-year restriction on his ability to apply for a new registration.
This settlement resolves allegations that Dr. Singstock, a Grand Rapids dentist, wrote numerous prescriptions for controlled substances, most of which were for opioids, without a legitimate medical purpose and outside of the usual course of professional practice. The United States alleges that many of these prescriptions were written for individuals with whom Dr. Singstock had no bona fide doctor-patient relationship and no medical records.
"The DEA entrusts physicians like Dr. Singstock with a privilege to prescribe controlled substances—a privilege that requires compliance with laws and regulations designed to protect against the diversion of prescription drugs that fuels the ongoing opioid epidemic," said U.S. Attorney Birge. "If you break that trust by bending the rules, the consequences will be swift and significant. As we continue to fight the opioid epidemic in Michigan, my office is committed to working with the DEA and other law enforcement to ensure compliance."
"Everyone, including the patient, the prescriber, and the manufacturer, plays an important role in utilizing opioids correctly," said DEA Special Agent in Charge Keith Martin, Detroit Field Division. "In this instance, the prescriber chose to operate outside of the law, and this is the consequence for that choice."
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. There has been no determination of liability.
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The Department of Justice Files Sexual Harassment Lawsuit Against Owners of Rental Properties in Muskegon, MichiganRead the Press Release
The Department of Justice announced today that it has filed a lawsuit alleging that the owners of rental properties in Muskegon, Michigan, violated the Fair Housing Act by subjecting female tenants to sexual harassment and retaliation.
The lawsuit, filed in the U.S. District Court for the Western District of Michigan, alleges that Darrell Jones sexually harassed female tenants of rental properties that he owned from at least 2008 to 2018. According to the complaint, Jones made repeated and unwelcome sexual comments, touched female tenants’ bodies without their consent, requested sexual favors, offered reduced or free rent in exchange for sex, and retaliated against female tenants who refused his sexual advances. The lawsuit also names as defendants Fatima Jones and Jones Investing LLC, co-owners of several of the rental properties where the harassment occurred.
“No woman should be forced to suffer sexual harassment to keep her home,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Fair Housing Act protects tenants from sexual harassment and retaliation by their landlords, and the Justice Department will vigorously pursue those who engage in such reprehensible and illegal conduct.”
“My office looks forward to vindicating the rights of these tenants,” said U.S. Attorney Andrew Birge for the Western District of Michigan. “I would like all tenants in West Michigan to know that we are here to help if they experience sexual harassment by a landlord or property manager. No one should have to choose between housing and freedom from sexual harassment.”
Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties to vindicate the public interest, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The Attorney General recently reaffirmed this commitment by directing the Justice Department to deploy all available enforcement tools against anyone who tries to capitalize on the COVID-19 crisis by sexually harassing people in need of housing. The goal of the initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. As part of the initiative, the Justice Department developed a public service announcement and formed a joint task force with HUD to combat sexual harassment in housing. Since launching the Initiative in October 2017, the Department of Justice has filed 15 lawsuits alleging a pattern or practice of sexual harassment in housing.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by the Joneses or Jones Investing, LLC, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select option number 91 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at [email protected]
The Department of Justice Files Sexual Harassment Lawsuit Against Owners of Rental Properties in Muskegon, MichiganRead the Press Release
GRAND RAPIDS, MICHIGAN – The Department of Justice announced today that it has filed a lawsuit alleging that the owners of rental properties in Muskegon, Michigan, violated the Fair Housing Act by subjecting female tenants to sexual harassment and retaliation.
The lawsuit, filed in the U.S. District Court for the Western District of Michigan, alleges that Darrell Jones sexually harassed female tenants of rental properties that he owned from at least 2008 to 2018. According to the complaint, Jones made repeated and unwelcome sexual comments, touched female tenants’ bodies without their consent, requested sexual favors, offered reduced or free rent in exchange for sex, and retaliated against female tenants who refused his sexual advances. The lawsuit also names as defendants Fatima Jones and Jones Investing LLC, co-owners of several of the rental properties where the harassment occurred.
"No woman should be forced to suffer sexual harassment to keep her home," said Assistant Attorney General Eric Dreiband of the Civil Rights Division. "The Fair Housing Act protects tenants from sexual harassment and retaliation by their landlords, and the Justice Department will vigorously pursue those who engage in such reprehensible and illegal conduct."
"My office looks forward to vindicating the rights of these tenants," said U.S. Attorney Andrew Birge. "I would like all tenants in West Michigan to know that we are here to help if they experience sexual harassment by a landlord or property manager. No one should have to choose between housing and freedom from sexual harassment."
Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties to vindicate the public interest, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The Attorney General recently reaffirmed this commitment by directing the Justice Department to deploy all available enforcement tools against anyone who tries to capitalize on the COVID-19 crisis by sexually harassing people in need of housing. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. As part of the Initiative, the Justice Department developed a public service announcement and formed a joint Task Force with HUD to combat sexual harassment in housing. Since launching the Initiative in October 2017, the
Department of Justice has filed 15 lawsuits alleging a pattern or practice of sexual harassment in housing.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by the Joneses or Jones Investing, LLC, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select option number 91 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at [email protected].
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Michigan Real Estate Developer Indicted for Tax and Bank FraudRead the Press Release
A federal grand jury in Grand Rapids, Michigan, returned an indictment yesterday charging a Michigan businessman with tax evasion, filing false documents with the Internal Revenue Service (IRS), making false statements to IRS Criminal Investigation (IRS-CI) agents, and mortgage fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Andrew B. Birge for the Western District of Michigan.
According to the indictment, Scott Allan Chappelle, of Okemos and East Lansing, Michigan, was an attorney and former Certified Public Accountant who operated Terra Management Company LLC, Strathmore Development Company Michigan LLC, and Terra Holding LLC, companies involved in real estate development and property management. Chappelle allegedly failed to pay over to the IRS employment taxes that were withheld from the wages of the companies’ employees. After the IRS attempted to collect the unpaid taxes, from 2010 through 2019, Chappelle allegedly evaded the payment of more than $830,000 in unpaid taxes by making false statements to the IRS about his and his companies’ assets and income, failing to disclose his vacation house on Lake Michigan, and purchasing real property in nominee names instead of his own.
Chappelle is also charged with making false statements to IRS-CI agents during its criminal investigation. As alleged, Chappelle told investigators that he had not personally purchased any real estate during the last three years when in fact he had purchased both a condominium in East Lansing and a house in Powell, Ohio, during that time. The indictment further alleges that Chappelle falsely told investigators that the condominium was for his son and paid for with student loan funds. Chappelle is also charged with filing a tax return for Terra Holdings on which he falsely claimed that the company had no employees and paid no wages.
The indictment also charges that Chappelle made false statements and submitted fraudulent documents to a bank when refinancing his lake house mortgage. Chappelle allegedly falsely represented that he was not a party to a lawsuit or owed any federal debt when in fact, Chappelle was a party to at least two lawsuits and had outstanding tax liabilities. Chappelle is also alleged to have submitted fraudulent bank statements that showed a substantially higher balance in an account than the account actually had at that time.
If convicted, Chappelle faces a maximum term of imprisonment of five years for tax evasion and making a false statement, three years for filing a false document with the IRS, and 30 years for bank fraud. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Birge commended agents of IRS-CI, who investigated the case, and Trial Attorney Melissa S. Siskind of the Tax Division and Assistant U.S. Attorney Timothy P. VerHey, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Michigan Real Estate Developer Indicted for Tax and Bank FraudRead the Press Release
Lansing-Area Real Estate Developer Lied and Hid Income and Assets
GRAND RAPIDS, MICHIGAN – A federal grand jury in Grand Rapids, Michigan returned an indictment today charging a Michigan businessman with tax evasion, filing false documents with the Internal Revenue Service (IRS), making false statements to IRS Criminal Investigation (IRS-CI) agents, and mortgage fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Andrew B. Birge for the Western District of Michigan.
According to the indictment, Scott Allan Chappelle, of Okemos and East Lansing, Michigan, was an attorney and former Certified Public Accountant who operated Terra Management Company LLC, Strathmore Development Company Michigan LLC, and Terra Holding LLC, companies involved in real estate development and property management. Chappelle allegedly failed to pay over to the IRS employment taxes that were withheld from the wages of the companies’ employees. After the IRS attempted to collect the unpaid taxes, from 2010 through 2019, Chappelle allegedly evaded the payment of more than $830,000 in unpaid taxes by making false statements to the IRS about his and his companies’ assets and income, failing to disclose his vacation house on Lake Michigan, and purchasing real property in nominee names instead of his own.
Chappelle is also charged with making false statements to IRS-CI agents during its criminal investigation. As alleged, Chappelle told investigators that he had not personally purchased any real estate during the last three years when in fact he had purchased both a condominium in East Lansing and a house in Powell, Ohio during that time. The indictment further alleges that Chappelle falsely told investigators that the condominium was for his son and paid for with student loan funds. Chappelle is also charged with filing a tax return for Terra Holdings on which he falsely claimed that the company had no employees and paid no wages.
The indictment also charges that Chappelle made false statements and submitted fraudulent documents to a bank when refinancing his lake house mortgage. Chappelle allegedly falsely represented that he was not a party to a lawsuit or owed any federal debt when in fact, Chappelle was a party to at least two lawsuits and had outstanding tax liabilities. Chappelle is also alleged to have submitted fraudulent bank statements that showed a substantially higher balance in an account than the account actually had at that time.
If convicted, Chappelle faces a maximum term of imprisonment of five years for tax evasion and making a false statement, three years for filing a false document with the IRS, and 30 years for bank fraud (the mortgage fraud scheme). He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Birge commended agents of IRS-CI, who investigated the case, and Trial Attorney Melissa S. Siskind of the Tax Division and Assistant U.S. Attorney Timothy P. VerHey, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Former Director of Finance Sentenced to Three Years in Federal Prison for Wire and Tax FraudRead the Press Release
Brian John Scalabrino Embezzled $348,365 from His Former Employer, Metal Standard Corporation of Holland
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Brian John Scalabrino, 47, formerly of East Grand Rapids, Michigan, was sentenced to 36 months in federal prison for committing wire and tax fraud. He was also ordered to serve three years of supervised release, pay $348,365 in restitution to Metal Standard, and pay $112,363 in restitution to the Internal Revenue Service. Chief U.S. District Judge Robert J. Jonker imposed the sentence.
Scalabrino, who was the former Director of Finance for Metal Standard Corporation of Holland, altered his payroll records to show a negative federal income tax withholding amount for most pay periods. This fraudulently raised his income so that his net income exceeded his reported gross income. He used this method to fraudulently increase his annual pay by approximately $50,000 each year.
Scalabrino filed false federal income tax returns, causing a loss to taxpayers of $112,363.00. He also submitted false IRS Form W-2 Wage and Tax Statements which showed fictitious amounts of federal tax withheld from his paychecks.
"Today, Justice is served, and Brian Scalabrino will be held accountable for his criminal actions. Scalabrino not only embezzled hundreds of thousands of dollars from his former employer and failed to report income to the IRS, he also created and submitted false IRS Form W-2 Wage and Tax Statements to the IRS," said Sarah Kull, IRS Criminal Investigation Special Agent in Charge, Detroit Field Office. "IRS-CI will continue to vigorously investigate corporate embezzlement to protect our nation's tax system and ensure everyone pays their fair share."
The Criminal Investigation section of the Internal Revenue Service handled the investigation. Assistant U.S. Attorney Clay Stiffler handled the prosecution.
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Ludington Man Pleads Guilty to Stealing from the Lake Michigan Carferry and Filing False Tax ReturnsRead the Press Release
Paul Patrick Piper stole between $550,000.00 and $3,500,000.00 from Lake Michigan Carferry and failed to pay federal income taxes of $363,000
GRAND RAPIDS, MICHIGAN — Paul Patrick Piper, 58, of Ludington, Michigan, pled guilty today to a felony information dated February 21, 2020, setting forth criminal charges of bank fraud and federal income tax offenses. Piper’s guilty plea hearing took place in the United States District Court in Grand Rapids, Michigan, before Chief U.S. District Judge Robert J. Jonker.
According to the felony information and plea agreement, Piper served for many years as the financial controller for Lake Michigan Carferry, the company operating the SS Badger ferry between Ludington, Michigan, and Manitowoc, Wisconsin. Piper defrauded various financial institutions and Lake Michigan Carferry in an amount between $550,000.00 and $3,500,000.00, by overriding normal accounting systems and writing checks directly to himself and to two of his affiliated businesses, Piper Tax & Accounting and Piper Group. Piper either forged the signatures of company owners on these checks or used a signature stamp without the authorization of the owners. Piper hid these transactions in the accounting system by booking these checks to an insurance expense code and by otherwise making false entries to balance company accounts. Additionally, Piper filed false personal income tax returns with the Internal Revenue Service because he knowingly failed to include the income he stole from the Carferry, and other income earned from his tax business, on his federal income tax returns. As part of his plea agreement, Piper agrees to pay to the IRS $363,926.00 in past-due taxes, plus penalties and interest.
A sentencing hearing in the United States District Court in Grand Rapids, Michigan, has been scheduled for August 11, 2020, at 3 p.m. before Chief U.S. District Judge Robert J. Jonker. At that time, Piper faces a maximum term of imprisonment of 30 years for the bank fraud offense and a maximum term of imprisonment of 3 years for filing a false tax return. Piper will also be ordered to pay restitution to his victims and to forfeit certain assets obtained with the proceeds of his criminal offenses. Piper previously forfeited a 2018 Ram Truck, a 2008 Glacier Bay 5th Wheel Recreational Vehicle, and cash in lieu of forfeiture of other assets.
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Department of Justice Files Statement of Interest in Support of Businesses Suffering from Arbitrary and Irrational Restrictions of Michigan Governor's COVID-19 OrdersRead the Press Release
The Department of Justice today filed a statement of interest in a Michigan federal court in support of a lawsuit filed by seven businesses challenging the restrictions imposed by Governor Gretchen Whitmer in response to the COVID-19 pandemic.
The statement of interest is part of Attorney General William P. Barr’s April 27, 2020 initiative directing Assistant Attorney General Eric Dreiband for the Civil Rights Division, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review state and local policies to ensure that civil liberties are protected during the COVID-19 pandemic.
In response to the COVID-19 pandemic, the Governor of Michigan has, over the past two months, issued over 100 executive orders that impose sweeping limitations on nearly all aspects of life for citizens of Michigan, significantly impairing in some instances their ability to maintain their economic livelihoods.
According to the lawsuit, the governor’s orders are arbitrary and discriminate against their businesses by treating them differently than other similarly situated businesses. Although the governor’s actions have required the plaintiffs to close or significantly restrict their businesses for over two months, the orders have allowed similar occupations to operate.
The plaintiffs include a real estate brokerage, a lawn and property maintenance company, an automotive glass exporter, an engine oil and auto parts distributor, a small jewelry store, a dental office, and an association of car washes. The plaintiffs brought their case in the Western District of Michigan.
“Our Constitution is enduring, and it is critically important that government comply fully with the Constitution in times of crisis,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Constitution permits appropriate state and local government restrictions to protect the health and safety of Americans, but it does not permit arbitrary limits that limit the right of all people in our country to be treated equally and fairly by the government.”
“While we appreciate the governor’s serious responsibility to safeguard public health through this pandemic, the Department of Justice has an obligation to call attention to the contours of the rights enshrined in the federal Constitution and to counsel against arbitrary restrictions on liberty,” said Andrew Birge, U.S. Attorney for the Western District of Michigan.
“I have no doubt about the governor’s good intentions, but the Executive Orders arbitrarily discriminate by allowing some businesses to operate while similar businesses must close or limit their operations—and if they refuse, they face fines and possible jail time,” said Matthew Schneider, U.S. Attorney for the Eastern District of Michigan, who, with Assistant Attorney General Dreiband, is overseeing the Justice Department’s effort to monitor state and local polices relating to the COVID-19 pandemic. “Under the Governor’s Orders, it’s ok to go to a hardware store and buy a jacket, but it’s a crime to go inside a clothing store and buy the identical jacket without making an appointment. That’s arbitrary. As important as it is that we stay safe during these challenging times, it is also important to remember that we do not abandon our freedoms and our dedication to the rule of law in times of emergency."
In its statement of interest, the United States explains that the facts alleged by the plaintiffs could amount to violations of the Commerce Clause and the Equal Protection Clause of the Constitution.
The federal case is Signature Sotheby’s International Realty, Inc., et al. v. Whitmer, No. 1:20-00360.
California Man Sentenced to 30 Months of Confinement for Interstate Threat to Injure Michigan WomanRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Juan Lara-Lopez, 34, of South Gate, California was sentenced to 30 months of confinement by Chief U.S. District Judge Robert J. Jonker for making on Facebook an interstate threat to injure a woman residing in West Michigan, in violation of 18 U.S.C. § 875(c). Lara-Lopez also received 3 years of supervised release to follow his release from confinement.
Lara-Lopez admitted at the plea hearing that he posted the Facebook threat from his California residence. The Facebook posting included a threat in the Spanish language, stating: "I am paying 3 thousand dollars to whomever can give me the exact address where this whore [Victim 1] is and . . . I will go after her . . . ." Lara-Lopez also made a number of additional threatening social media postings as relevant conduct to the charged offense. At the sentencing hearing, Chief Judge Jonker sentenced Lara-Lopez above the Guideline confinement range because the threats were designed to scare and humiliate the victim, were made repeatedly over an extended period, and were leaked beyond the victim to frighten others in the community as well as the victim.
"These Facebook postings were designed to intimidate and terrorize the victim. Our efforts today recognize that no one deserves online harassment with threats to injure, torture, and kill," U.S. Attorney Andrew Birge said.
"HSI works closely with state and local law enforcement to investigate threats to harm or injure wherever those threats originate," said Homeland Security Investigations SAC Vance Callender. "In this case, the targeted individual was a woman in West Michigan, but we remain committed to safeguarding the rights of all those targeted by online harassment and threats."
The case was investigated by HSI – Grand Rapids. Assistant U.S. Attorney Clay M. West prosecuted the case.
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St. Joseph Woman Charged with Wire Fraud in Scam Targetting A Kalamazoo Manufacturing BusinessRead the Press Release
Kris Fratzke Bilked Her Employer, Flare Fittings, of $540,000 in a Phony Billing Scheme
GRAND RAPIDS, MICHIGAN — The U.S. Attorney filed felony charges today against a St. Joseph, Michigan woman for defrauding her employer of $540,000 in a phony billing scheme. Kris Marie Fratzke, 53, was the chief financial officer of Flare Fittings, a manufacturing company located in Kalamazoo.
The Felony Information filed today in U.S. District Court contains two charges: wire fraud and filing a false tax return. The wire fraud charge states that, between 2013 and 2019, Fratzke created a shell company she called Mid America Fittings, because that would appear to be a real supplier of materials to Flare Fittings, a pipe manufacturing company. She then created phony invoices for the shell company and paid them using her authority over the finances of the company. In this manner, she issued 235 checks, totaling over $540,000, to her shell company and then deposited that money into her personal account and used the funds for personal expenses. The tax charge relates that Fratzke did not declare this income to the Internal Revenue Service.
The federal wire fraud statute carries a maximum possible sentence of twenty years in prison, a fine of twice the fraud proceeds, a restitution order and other sanctions. Filing a false tax return carries a maximum possible penalty of three years in prison, a $250,000 fine and other penalties.
Agents of the Department of Homeland Security, Immigration and Customs Enforcement and the Internal Revenue Service, Criminal Investigation Division investigated this case. Timothy VerHey, Assistant United States Attorney, is handling the prosecution.
No court date has yet been set for Fratzke to appear in court. The charges in a Felony Information are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Final Four Defendants Sentenced in Twenty-Four Member Crystal Methamphetamine ConspiracyRead the Press Release
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced today the final sentences have been imposed in the prosecution of a 24-member drug trafficking operation. Darrell Lee-Lamont Summers II, Daryl Kevin Cannon, Timothy Roy Mason, and Tremain Lamar Braxton were sentenced this week following their convictions for conspiring to distribute methamphetamine and related crimes after a ten-day trial in November before the Honorable Robert J. Jonker, Chief United States District Judge. The remaining 20 defendants were sentenced between May 2019 and February 2020 for crimes committed as a part of the conspiracy.
The evidence at trial demonstrated that the leaders of the conspiracy, including Summers, Cannon, Raymond Demetrius Stovall, and Richard Lee James, Jr., brought or sent, in total, hundreds of thousands of dollars to suppliers in California and Arizona, including Kentrell Terome Dunn, who subsequently shipped hundreds of pounds of methamphetamine back to Michigan through the mail to them and others in the organization. The cash deliveries and shipments took place between 2016 and 2018. The organization largely distributed the methamphetamine in southwest Michigan, including in greater Kalamazoo. Law enforcement intercepted three packages during the investigation, which in total contained approximately 14 pounds of crystal methamphetamine, between 96% and 99% pure. At the time of the interceptions, those 14 pounds alone were worth more than $40,000 on the southwest border from which they shipped and nearly $100,000 wholesale in Michigan.
The Court imposed the following sentences on the conspirators:
Defendant
Age
City
Sentence
David Richard Uminn
36
Kalamazoo
262 months
Darrell Lee-Lamont Summers II
29
Benton Harbor
240 months
Daryl Kevin Cannon
27
Benton Harbor
240 months
Raymond Demetrius Stovall
30
Benton Harbor
225 months
Kentrell Terome Dunn
34
Phoenix, Arizona
210 months
Richard Lee James, Jr.
28
Benton Harbor
210 months
Robert Bruce Armstrong
66
Kalamazoo
180 months
Timothy Roy Mason
40
Benton Harbor and Erie, Pennsylvania
180 months
Tremain Lamar Braxton
31
Benton Harbor
180 months
Scotty Deandre-Marcus Campbell
27
Benton Harbor
168 month
Michael John Marcon
33
Kalamazoo
156 months
Andrew Peter Bagley
31
Kalamazoo
156 months
Eshawn Jamier Whiteside
22
Kalamazoo
145 months
Ronald Eugene Goodloe, Jr.
31
Benton Harbor
130 months
Robert Duane Kniss
46
Kalamazoo
120 months
Gerry Lionel Winston, Jr.
36
Kalamazoo
120 months
Aaron Earl Rimpson
29
Kalamazoo
120 months
Ronnie Deval Smith, Jr.
26
Kalamazoo
120 months
Kandy Kay Kirby
48
Kalamazoo
90 months
Richard Farmer, Sr.
45
Atlanta, Georgia
60 months
DeMichael Mishaun Horn
20
Benton Harbor
60 months
Michael Dewayne Horn
21
Benton Harbor
42 months
Ericka George
32
Kalamazoo
24 months
Daisy Laverne Dyer
44
Benton Harbor
18 months
"These substantial sentences, ranging from years to decades, should serve as a stark warning to others who might aspire to become drug dealers, or to provide assistance to them," said U.S. Attorney Birge. "Crystal methamphetamine is a dangerous drug, and these sentences underscore the serious consequences for those who get involved in its distribution."
"A coordinated effort from multiple law enforcement agencies successfully removed two dozen violent and dangerous drug dealers from southwest Michigan, but the work of protecting these communities continues," said Steven M. D’Antuono, Special Agent in Charge of the FBI Detroit Division. "The FBI’s resolve to identify criminals who are trafficking these substances and bringing them to justice has not faltered and we will continue to work hand-in-hand with the DEA, SWET, and KVET to achieve this goal."
This case was investigated by the FBI, the DEA, the U.S. Postal Inspection Service, the Kalamazoo Valley Enforcement Team, and the Southwest Enforcement Team (a component of the Michigan State Police), who were assisted by the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Michigan Department of Corrections, the Portage Police Department, the Kalamazoo Department of Public Safety, the Kalamazoo County Sheriff’s Office, the Berrien County Sheriff’s Office, the St. Joseph County Sheriff’s Office, and TSA Investigations – Detroit Field Office. Assistant U.S. Attorneys Justin M. Presant, Jonathan Roth, Vito S. Solitro, and retired Assistant U.S. Attorney Mark Courtade prosecuted the case.
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Career Criminal Sentenced for Bank Robbery SpreeRead the Press Release
Kevin Turner was still on parole for his last bank robbery
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced that Kevin Delando Turner, 50, of Benton Harbor, was sentenced today to 180 months’ imprisonment and 3 years’ supervised release by U.S. District Judge Janet T. Neff. Turner pled guilty in February to robbing an Old National Bank branch in Kalamazoo with his nephew Draper Turner. Draper pled guilty, cooperated with the government, and was sentenced in November 2019 to 51 months’ imprisonment.
On March 25, 2019, Kevin recruited and drove Draper to the Old National Bank. On the drive to Kalamazoo, Kevin told Draper how to rob the bank. Kevin waited in his car outside the Old National Bank, while Draper went in, told the teller he had a gun, and obtained $3,150 in cash. A bystander saw Draper run from the bank to Kevin’s car, and gave the Kalamazoo Department of Public Safety a description of the vehicle. An off-duty police lieutenant spotted the car, and noted the license plate number before losing the robbers in traffic.
Police determined the car was registered to Kevin, who was still on parole for a 2009 bank robbery in Kalamazoo. Police found and arrested Kevin in Benton Harbor, in possession of several thousand dollars in cash. Kevin initially denied being near the bank, but when police told him a witness saw the robber getting in his car, Kevin fabricated a story about a carjacker abducting him at gunpoint.
Police separately found and arrested Draper, whose parole officer recognized him from bank surveillance footage. Draper confessed robbing the Old National Bank with his uncle Kevin, and told FBI agents Kevin had bragged about robbing two other banks in Michigan and two in Indiana. Using surveillance footage and cellular phone location techniques, FBI determined Kevin was responsible for four open robbery cases. When Kevin robbed the two other banks in Michigan, he told showed the tellers a device with wires, and led them to believe it was a bomb he would detonate if they did not comply. Kevin received a longer sentence because of his long history of crimes against people and property, his leadership role in the offense, and because he waited until shortly before trial to plead guilty.
Steven M. D’Antuono, Special Agent in Charge of the FBI in Michigan stated, "The sentences imposed on these two defendants reflect the serious nature of bank robberies. The FBI is proud of the role it played alongside our law enforcement partners to get two violent offenders off of the streets, making our community a safer place for all."
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U.S. Attorney Birge Joins Attorney General Barr in Recognizing National Police WeekRead the Press Release
GRAND RAPIDS, MICHIGAN - In honor of National Police Week, U.S. Attorney Andrew Birge recognizes the service and sacrifice of federal, state, local, and tribal law enforcement. The week is observed Sunday, May 10 through Saturday, May 16, 2020.
"There is no more noble profession than serving as a police officer," said Attorney General William P. Barr. "The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted."
"This week is our chance to express our gratitude to law enforcement officers for their commitment to public service and willingness to put their lives on the line to keep us all safe every day of the week", said U.S. Attorney Birge. "I hope you join me in thanking these honorable individuals so they know how much we value and appreciate their essential role in these challenging times."
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. Based on data collected and analyzed by the FBI, 89 law enforcement officers died nationwide in the line of duty in 2019. Comprehensive data tables about these incidents and brief narratives describing most of the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2019. This year, the COVID-19 pandemic has underscored law enforcement officers’ courage and unwavering devotion to the communities they swore to serve.
The names of the fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial will be read on Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil. Because public events have been suspended as a result of COVID-19, the vigil will be livestreamed to the public at 8:00 PM (EDT). To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
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Kalamazoo Urogynecologist and Nurse Practioner Face Charges Related to Health Care Fraud and Adulteration of Medical DevicesRead the Press Release
Potential Victims Can Contact the U.S. Attorney’s Office Directly
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew B. Birge announced today separate charges brought against Roger D. Beyer, M.D., and his wife, Susan E. Wright, N.P., J.D. Dr. Beyer was the owner of Women’s Health Care Specialists, P.C. ("WHCS"), an obstetrics-gynecology practice in Kalamazoo, and Urological Solutions of Michigan, PLC ("USM"), a medical practice consisting of traveling nurse practitioners in West Michigan.
The Felony Information filed against Dr. Beyer charges him with conspiracy to commit health care fraud. The United States alleges that Dr. Beyer conspired to fraudulently bill Medicare for therapy services, known as pelvic muscle rehabilitation ("PMR") therapy, provided by USM, using more-lucrative and inappropriate diagnostic codes. The PMR therapy was provided purportedly to treat mostly elderly female patients with fecal or urinary incontinence, primarily in the greater Traverse City, Kalamazoo, and Grand Rapids areas.
The United States also alleges in the Felony Information that Dr. Beyer directed his staff at USM and WHCS to reuse a single-user (one patient only) rectal pressure sensor on multiple patients as part of the PMR therapy. Additionally, the United States alleges that WHCS staff also reused a single-use (disposable, one use only) anorectal manometry catheter on multiple patients as part of an initial diagnostic study with patients with potential fecal incontinence. Both instances of reuse were inconsistent with the device clearance by the Food & Drug Administration ("FDA") and the devices’ instructions for use. Further, this reuse resulted in the adulteration and possible contamination of these devices.
In a separate Felony Information, the United States charges Ms. Wright with misprision of health care fraud and the adulteration of a medical device. The United States alleges that Ms. Wright knew that USM fraudulently billed Medicare for evaluation and management ("E&M") services to patients on the same date of service as the PMR therapy, but she never informed authorities. The Felony Information against Ms. Wright similarly charges her with adulteration of a medical device, specifically the rectal pressure sensor in the manner described above for Dr. Beyer.
Both Dr. Beyer and Ms. Wright have signed plea agreements in their respective cases, and plea hearings are scheduled for May 15, 2020.
USM patients who were also Medicare beneficiaries may have been charged copays for the billing of their PMR therapy using the more lucrative diagnostic codes. Those same patients may also have been improperly charged copays for E&M services billed alongside their PMR therapy. Additionally, patients of USM and WHCS who received PMR therapy or diagnostic anorectal manometry may have been the recipients of services using adulterated medical devices. This adulteration posed a risk of infectious disease transmission. Such patients can review the press release issued by the Michigan Department of Health & Human Services on June 11, 2019, encouraging patients of Dr. Beyer and his practices to consult with their treating physicians about undergoing any testing:
https://www.michigan.gov/mdhhs/0,5885,7-339--499502--,00.html
Individuals who may have been affected by the fraudulent billing or device adulteration can contact the U.S. Attorney’s Office for the Western District of Michigan to obtain information about victim rights and the progression of these cases. The U.S. Attorney’s Office website includes a page with forms and information related to this case specifically for victims:
https://www.justice.gov/usao-wdmi/victim-and-witness-assistance-program/vw-large-cases/Beyer_Wright
Alternatively, potential victims may call Kathy Schuette, Victim Witness Coordinator, at (616) 808-2034.
Charges in an information are only allegations and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty, and the government has the burden of proving guilt beyond a reasonable doubt.
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Grand Rapids Woman Pleads Guilty to Interfering with Flight Crew on Allegiant Airlines FlightRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Amy Jo-Manshum John, 25, of Grand Rapids, Michigan pleaded guilty before a U.S. Magistrate Judge pursuant to a plea agreement to one count of interfering with flight crew members and attendants. John faces a statutory maximum term of imprisonment of twenty years’ confinement, $250,000 fine, and 3 years’ supervised release at the time of sentencing.
John admitted at the plea hearing that she flew on Allegiant Airlines Flight # 1795 on December 14, 2019 nonstop from Fort Lauderdale, Florida to Grand Rapids, Michigan. Onboard the flight, John swung her arm twice at a flight attendant to strike her. The assault interfered with and diminished the flight attendant’s ability to perform her duties. John also admitted as relevant conduct that she intimidated three other flight attendants on the same flight by being disruptive, unruly, and disobedient while the flight was in progress.
"I commend the airline crew and airport police for defusing this situation," U.S. Attorney Birge said. "Unruly and combative passengers pose a danger to everyone onboard a commercial aircraft. Anyone who behaves like Ms. John should consider themselves warned: my office will not hesitate to enforce the law to keep travelers safe and the legal consequences are serious."
"Safety on board an airplane is important to all who fly," said Steven M. D'Antuono, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Division. "An abusive passenger acting out against the flight crew is not merely an inconvenience, but a serious threat to the safety of everyone on the flight. This sort of abusive and threatening behavior constitutes a federal crime that will be investigated fully as part of our mission to protect the flying public."
The FBI and the Gerald R. Ford International Airport Police Department investigated the case. Assistant U.S. Attorney Clay M. West prosecuted it.
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U.S. Attorney's Office Releases Tips for Protecting Children from Online Predators During COVID-19Read the Press Release
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge offered tips to help parents and guardians keep their children safe from on-line predators, commenting that: "With schools and entertainment facilities closed during the COVID-19 pandemic, kids are using the Internet more and more. Unfortunately, that means online child sexual predators have increased access to them."
1. Discuss Internet safety with children of all ages that are online. Many children do not realize that people may not be who they claim to be online. Similarly, many do not understand that someone who seems like a friend online could have a deviant motive.
2. Set limits around who your children are allowed to communicate with. You may consider limiting young children to communicating only with people you have personally met. For older children, you may consider limiting them to communicating only with people they have met in person.
3. Set limits around the kinds of devices and applications your children use. Online child sexual predators often use new technologies to avoid detection by law enforcement. If your child is using an application you have not heard of before, consider researching the application online or testing it out using your child’s account.
4. Use technology to protect them. Many devices and programs allow parents to set parameters around which applications children may use and for how long. Similarly, many of these programs allow parents to see what their children are doing while using those applications.
5. Pay attention to warning signs. Children who are sexually exploited are often embarrassed and hesitate to tell parents or other authority figures about their experiences. Pay attention if your child is withdrawing or changing their mood while their Internet activity increases.
6. Report suspected abuse. Reporting can help minimize or stop further victimization. If you believe your child has been sexually exploited online, contact the United States Attorney’s Office, your local F.B.I. office, or report online at www.cybertipline.org.
For additional information and resources on staying safe online and at home, visit https://www.end-violence.org/safeonlinecovid.
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Michigan Man Charged with COVID-19 Related Wire Fraud SchemeRead the Press Release
Defendant Allegedly Ran Website That Received Customers’ Money but Failed to Deliver N95 Masks
GRAND RAPIDS - The United States Attorney’s Office for the Northern District of California unsealed charges today in a criminal complaint charging Rodney L. Stevenson II with wire fraud for his operation of an e-commerce site that allegedly scammed several customers into paying for N95 masks that they never received. The announcement was made by U.S. Attorney for the Northern District of California David L. Anderson, U.S. Attorney for the Western District of Michigan Andrew B. Birge, U.S. Postal Inspection Service San Francisco Division Postal Inspector in Charge Rafael E. Nuñez, U.S. Postal Inspection Service Detroit Division Acting Inspector in Charge Felicia George, FBI Special Agent in Charge John F. Bennett, and FBI Special Agent in Charge Detroit Field Division Steve D’Antuono.
"Hospitals, healthcare providers and everyday people are understandably anxious to obtain N95 masks, N99 filters and other PPE," said U.S. Attorney Anderson. "The criminal element is always ready to prey on fear and uncertainty, and it is all too easy to lie over the internet. While sheltering in place, Americans are shopping on the internet like never before. The complaint alleges a consumer’s nightmare of fake webpages and false promises."
"The reach of federal law enforcement is long. If someone uses the internet to commit alleged fraud, their victims can be from anywhere and they could find themselves facing those victims and subject to serious federal charges far from home," said U.S. Attorney Birge. "After some preliminary hearings here in West Michigan, all future proceedings related to these very serious allegations will be in Northern California."
"One of the core tenets of the U.S. Postal Inspection Service’s mission is to support and protect customers of the U.S. Postal Service. Not only does that mean investigating and taking action against such exploitative behavior as alleged in this case, but also educating consumers how to be proactive in protecting themselves", said AIC Felicia George. "We urge citizens to do their due diligence when dealing with an unknown business or entity online, and if they believe they have been a victim of fraud, report it to us immediately at www.uspis.gov so that we can take the appropriate action."
"The FBI across the country will continue to be vigilant in deterring, detecting, and investigating wrongdoing related to the COVID-19 pandemic. Stevenson’s alleged behavior was reprehensible. Under no circumstances is it permissible to over-inflate the prices of much-needed safety equipment and then either provide substandard product or fail to provide the product altogether," said SAC D'Antuono. "The severe penalties for scams like the one alleged here should serve as a warning to others."
According to the complaint, Stevenson, 24, of Muskegon, Michigan, controlled EM General, a Michigan limited liability company created in September 2019. EM General operated a website that purported to sell an available inventory of "Anti-Viral N95" respirator masks. An N95 respirator mask is a particulate-filtering facepiece respirator that meets the U.S. National Institute for Occupational Safety and Health N95 standard of air filtration. N95 masks, which cover the user’s nose and mouth, are required to filter at least 95% of airborne particles.
The complaint further alleges EM General, through its website, falsely claimed to have N95 respirator masks "in stock" and available for sale and shipment during the shortage caused by the COVID-19 pandemic. Based on these and other representations, customers bought masks from the website, sometimes paying EM General more than $40 or more per mask. Stevenson is alleged to have taken several steps to fraudulently make EM General appear to be a legitimate company. For example, Stevenson invented a fictional Chief Executive Officer, "Mike Thomas," from whom fraudulent emails were sent, as well as several other fake officers or employees of the company. Stevenson also used stock photographs from the internet to create a page depicting this team of fake professional management staff. After customers made their first purchase, the defendant offered additional masks to those customers at discounted prices.
The complaint describes how four victims paid for, but did not receive, N95-compliant masks. Three of the four victims reside in the San Francisco Bay Area, including one hospital employee. Also described in the complaint are follow-up emails from EM General to customers in which false excuses about supply and shipping issues were made. Three of the four customers in the complaint never received the promised products at all despite multiple representations that the masks had been shipped. The fourth customer paid over $400 on March 2, 2020, for N95 masks represented to be "in stock," and, after raising several complaints, on March 27, 2020, received cheaply made fabric masks. The masks, delivered in a white envelope with no return address, did not comply with the N95 standard that EM General purportedly sold.
Stevenson is charged with wire fraud. If convicted, he faces up to 30 years in prison, followed by five years of court supervision, and a fine of up to $1,000,000.
Stevenson was arrested at his home in Muskegon, Michigan, and made his initial appearance before the U.S. District Court for the Western District of Michigan in Grand Rapids. Dates for further proceedings remain to be determined.
The case is being prosecuted by the Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California. This case is being investigated jointly by the San Francisco and Detroit Divisions of the United States Postal Inspection Service and the San Francisco and Detroit field offices of the Federal Bureau of Investigation.
A complaint merely alleges that crimes have been committed, and any defendant so charged is presumed innocent until proven guilty beyond a reasonable doubt.
All press inquiries related to local hearings should be directed to Anne Towns at [email protected] or (616) 808-2082. All other press inquiries should be directed to Abraham Simmons at (415) 436-7264 or by e-mail at [email protected] or Robin Wall at (415) 436-7071 or by email at [email protected].
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Department of Justice Combats Sexual Harassment Related to Housing During COVID-19 PandemicRead the Press Release
GRAND RAPIDS, MICHIGAN – The Department of Justice is dedicated to combatting sexual harassment in housing. Since the beginning of the coronavirus pandemic, the Department has heard reports of landlords sexually harassing tenants who are experiencing financial hardship and are unable to afford rent. This conduct is illegal and the U.S. Attorney’s Office for theWestern District of Michigan will tirelessly pursue landlords and others who abuse their authority by preying upon the vulnerable.
"Sexual harassment in housing is often underreported, but it is an egregious violation of a person’s right to fair housing," Andrew Birge, United States Attorney for the Western District of Michigan said. "Landlords or property managers using the coronavirus crisis as an opportunity to extort sexual acts, or even commit assaults, against vulnerable tenants struggling to pay rent is intolerable. Our office is dedicated to uncovering such violations where they exist and vigorously enforcing the law."
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act. The Justice Department brings cases each year involving unlawful landlord conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures. More information about the Department’s Sexual Harassment in Housing Initiative is available on its webpage at https://www.justice.gov/crt/sexual-harassment-housing-initiative.
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling 1-(844) 380-6178 or emailing [email protected].
Individuals in West Michigan who believe they may have been victims of discrimination may also present a complaint to the U.S. Attorney’s Office for the Western District of Michigan by calling (616) 808-2004 or emailing [email protected].
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Department of Justice Commemorates National Crime Victims' Rights WeekRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew Birge joins the Department of Justice and communities nationwide in observing National Crime Victims’ Rights Week, celebrating victims’ rights, protections and services throughout the week. This year’s observance takes place April 19-25 and features the theme, "Seek Justice| Ensure Victims' Rights | Inspire Hope."
"Every year, millions of Americans suffer the shock and trauma of criminal victimization, affecting their well-being and sense of security and dignity," said Attorney General William P. Barr. "To these victims, we affirm our unwavering commitment to supporting them in their hour of need. We also commend the thousands of victim advocates and public safety professionals who labor tirelessly to secure victims’ rights and support survivors."
"Here in West Michigan, we have assisted victims of all manner of crimes: from financial scams and identity theft, to domestic and sexual abuse, from human trafficking and child pornography, to the distribution of drugs resulting in death", said Andrew Birge, United States Attorney for the Western District of Michigan. "There is no greater responsibility we have than securing justice for crime victims and supporting them throughout a prosecution. This is the week to publicly affirm our commitment to victim rights, but I am very proud of the attorneys, support staff and, in particular, the victim specialists in my office for the professionalism, understanding and outcomes they continuously show crime victims."
"While we have made tremendous progress driving down crime and violence across the country, far too many Americans continue to suffer the pain and loss of criminal victimization," said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs, which oversees OVC. "This week, we stand by these survivors and their families, and we pledge our ongoing support to the countless men and women who serve them with such extraordinary skill and compassion."
Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims. President Trump and his administration have implemented historic levels of support for victim assistance and victim compensation.
Some 3.3 million Americans age 12 and older were victims of violent crime in 2018, according to the National Crime Victimization Survey. The Office for Victims of Crime, part of the Justice Department’s Office of Justice Programs, supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.
During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local and tribal agencies traditionally host rallies, candlelight vigils and other events to raise awareness of victims’ rights and services. This year, many communities are organizing virtual gatherings and online public awareness campaigns.
"Crime victims deserve to know that they have the encouragement and support of the American people," said OVC Director Jessica E. Hart. "I hope that citizens throughout the nation will take the opportunity this week to remember all victims of crime and their heroic stories of survival. I encourage everyone to also find meaningful ways to express their appreciation to the many committed and compassionate service providers across the country who work tirelessly supporting these survivors."
For more information on how to create your own public campaigns to raise awareness about crime victims’ rights online and at events throughout the year, please visit: https://ovc.ncjrs.gov/ncvrw2020/overview.html
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Contract Rehab Provider to Pay $4 Million to Resolve False Claims Act Allegations Relating to the Provisions of Medically Unnecessary Rehabilitation Therapy ServicesRead the Press Release
GRAND RAPIDS, MI – Encore Rehabilitation Services LLC (Encore) has agreed to pay $4.03 million to resolve allegations that Encore violated the False Claims Act by knowingly causing three Michigan skilled nursing facilities to submit false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary or skilled, the Department of Justice announced today. Encore, based in Farmington Hills, Michigan, provides rehabilitation services to patients at over 600 health care facilities, including skilled nursing facilities, in over thirty states.
"Today’s settlement reflects our continuing efforts to protect patients and taxpayers by ensuring that the care provided to beneficiaries of government-funded healthcare programs is dictated by clinical needs, not a provider’s fiscal interests," said Deputy Assistant Attorney General Michael Granston of the Department of Justice’s Civil Division. "Rehabilitation therapy companies provide important services to our vulnerable elderly population, but they will be held to account if they knowingly provide patients with unnecessary or ineligible services."
This settlement resolves allegations that Encore’s policies and practices at three Michigan skilled nursing facilities resulted in the provision of unreasonable, unnecessary, or unskilled rehabilitation therapy or the recording of therapy minutes as individual therapy when concurrent or group therapy was actually provided. The settlement relates to Encore’s alleged conduct at the Autumn Woods Healthcare Facility in Warren, Michigan between Sept. 1, 2012, and July 31, 2018, the Bay Shores Senior Care and Rehab Center in Bay City, Michigan, for the period from April 1, 2013, to April 6, 2017, and MediLodge of Yale in Yale, Michigan, for the period from Oct. 1, 2010, to April 6, 2017.
"Billing federal healthcare programs for medically unnecessary rehabilitation services not only undermines the viability of those programs, it exploits our most vulnerable citizens," said U.S. Attorney Matthew Schneider for the Eastern District of Michigan. "We are committed to working with our federal partners to protect both vulnerable Michiganders and these helpful healthcare programs."
"The resolution announced today demonstrates my office’s commitment to aggressively pursuing providers who utilize fraudulent practices to knowingly put their own financial self-interest over a duty to patients," said U.S. Attorney Andrew Byerly Birge for the Western District of Michigan. "It is imperative that providers make healthcare decisions based upon a patient’s need for services rather than a self-serving desire to maximize financial profits."
Contemporaneous with the civil settlement, Encore entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Health and Human Services – Office of Inspector General (HHS-OIG) requiring, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The CIA requires training, auditing, and monitoring designed to address the conduct at issue in the case.
"The submission of claims for unreasonable, unnecessary or unskilled rehabilitative services is improper and unacceptable," said Special Agent in Charge Lamont Pugh III, HHS-OIG – Chicago Region. "The public expects that proper services will be provided and that tax payer dollars will not be wasted. OIG Corporate Integrity Agreements help to ensure that contracted providers, who have caused improper billing practices change their behavior."
The settlement resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by Linda Anderson, Reza Saffarian and Audrey Theile, and Adam LaFerriere, former Encore employees. The False Claims Act permits private parties to file suit on behalf of the United States and to share in any recovery. The amount to be recovered by the private parties in this matter has not been determined.
The matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the Eastern District of Michigan and the Western District of Michigan, and the HHS-OIG.
The three qui tam cases are docketed as United States ex rel. Anderson v. Encore Rehabilitation Services, LLC, No. 2:14-cv-13759 (E.D. MI), United States ex rel. Saffarian, et al. v. Encore Rehabilitation Services, LLC, et al., No. 1:16-cv-605 (W.D. MI), and United States, et al., ex rel. LaFerriere v. Encore Rehabilitation Services, LLC, et al., No. 1:17-cv-95 (W.D. MI). The claims resolved by the settlement are allegations only; there has been no determination of liability.
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Federal, State and Local Law Enforcement Warn Against Teleconferencing Hacking During Coronavirus PandemicRead the Press Release
GRAND RAPIDS, MICHIGAN - As our country finds new ways of communicating during the COVID-19 pandemic, Michigan residents have turned to video-teleconferencing (VTC) platforms, such as Zoom, to stay connected. Unfortunately, as the FBI reported this week, there has been a rise in the number of so-called "Zoom-bombing," or video hacking across the United States. The State of Michigan has seen several instances of such hacking just this week. Hackers are disrupting conferences and online classrooms with pornographic and/or hate images and threatening language.
Michigan’s chief federal, state, and local law enforcement officials are joining together to warn anyone who hacks into a teleconference can be charged with state or federal crimes. Charges may include – to name just a few – disrupting a public meeting, computer intrusion, using a computer to commit a crime, hate crimes, fraud, or transmitting threatening communications. All of these charges are punishable by fines and imprisonment.
"You think Zoom bombing is funny? Let’s see how funny it is after you get arrested," stated Matthew Schneider, United States Attorney for Eastern Michigan. "If you interfere with a teleconference or public meeting in Michigan, you could have federal, state, or local law enforcement knocking at your door."
Western District of Michigan U.S. Attorney Andrew Birge advised video conference users: "Whether you run a business, a law enforcement meeting, a classroom or you just want to video chat with family, you need to be aware that your video conference may not be secure and information you share may be compromised. Be careful. If you do get hacked, call us."
"It is a shame that during a pandemic which is causing fear and anxiety across the globe that there are wrongdoers seeking to disrupt virtual environments which have become essential to communication, teleworking and online learning," said Special Agent in Charge Steven M. D’Antuono. "While Michiganders are sheltering in place, it is important to practice good cyber hygiene. We encourage our communities to visit fbi.gov or ic3.gov to learn more about tips they can take to keep their devices secure."
"We were alerted to this problem by a Michigan reporter who participated in a Zoom conference that was hijacked," stated Michigan Attorney General Dana Nessel. "Since then we have learned of other incidents around the country. There are steps people can take to protect their cybersecurity and we encourage all users to follow the proper procedures to ensure their teleconferences are secure."
Robert Stevenson, Michigan Association of Chiefs of Police stated, "While the state is practicing social distancing, our law enforcement partners are coming together to help keep the people of Michigan safe during this crisis. Please report any incidents of hacking or any other type of fraud to your local, state or federal law enforcement agency."
As individuals continue the transition to online lessons and meetings, law enforcement recommends exercising due diligence and caution in your cybersecurity efforts. The following steps can be taken to mitigate teleconferencing threats:
• Do not make the meetings or classroom public. In Zoom, there are two options to make a meeting private: require a meeting password or use the waiting room feature and control the admittance of guest.
• Do not share a link to a teleconference or classroom on an unrestricted publicly available social media post. Provide the link directly to specific people.
• Manage screensharing options in Zoom, change screensharing to "Host Only."
• Ensure users are using the updated version of remote access/meeting applications. In January, 2020, Zoom updated their software. In their security update, the teleconference software provider added passwords by default for meetings and disabled the ability to randomly scan for meetings to join.
• Lastly, ensure that your organization’s telework policy or guide addresses requirements for physical and information security.
If you were a victim of a teleconference hijacking, or any cyber-crime for that matter, report it to the FBI’s Internet Crime Complaint Center at https://www.ic3.gov/default.aspx. Click here for more information regarding teleconference hijacking: https://www.ic3.gov/media/2020/200401.aspx.
Additionally, if you receive a specific threat during a teleconference, please report it to the FBI at https://tips.fbi.gov/ or call the FBI Detroit Division at (313) 965-2323.
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U.S. Attorney's Office and IRS Warn the Public About Scammers Targeting Economic Relief PaymentsRead the Press Release
GRAND RAPIDS, MI – U.S. Attorney Andrew Birge and Sarah Kull, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Division (IRS-CI) in Detroit, warned West Michigan residents to watch out for scammers attempting to steal COVID-19 Economic Impact Payments.
"With relief payments coming soon, we want people to be mindful that scammers are out there looking for ways to get their hands on those checks and personal account information. Remain vigilant, warn your friends and family about COVID-19 scams and report suspected fraudulent activity to the federal hotlines," said U.S. Attorney Birge.
"I urge the public not to fall victim to fraudsters attempting to steal Economic Impact Payments being sent out. The IRS will not call, text, email or otherwise contact you to ask for your information. This money is meant for you. Don’t fall victim to scammers," said IRS Special Agent in Charge Kull.
The Treasury Department and the IRS announced that distribution of Economic Impact Payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. Information from the 2018 or 2019 tax return, if filed, will be used to calculate payment. Most individuals do not need to take any action. Social Security beneficiaries who are not typically required to file tax returns will not need to file to receive a payment. Instead, payments will be automatically deposited into their bank accounts. The IRS will calculate and automatically send payment to those eligible. The IRS will deposit the economic relief check into the direct deposit account previously provided in the tax returns. If banking information was not provided, the IRS will send a check via mail. The IRS will NOT contact anyone to request banking info, will not ask for confirmation of personal information to send or expedite an economic impact payment, or require payment of a fee.
If anyone receives a call claiming to be from the IRS or any entity related to the Economic Impact Payment, the call is a scam and recipients should not engage with the scammer and absolutely should not give out bank account, debit account or PayPal account information-- even if the person claims it is necessary to get the relief check.
It will take a few weeks before the Treasury mails out the Economic Impact Payments. If a person receives a "check" for an odd amount or a check that requires verification of the check online or by calling a number, it is a fraud. U.S. Attorney Birge and IRS Special Agent in Charge Kull reminded everyone to be vigilant about promptly collecting mail from their mailbox in order to prevent the theft of any economic relief checks delivered there.
Don’t be a victim! Visit www.irs.gov for the latest information on new scams and schemes. The IRS has set-up a "hotline" email address for Michigan residents to report fraud to the IRS: [email protected] To find out more about Department of Justice resources and information, please visit www.justice.gov/coronavirus. Residents can also report Suspected Fraud to the National Center for Disaster Fraud Hotline at 866-720-5721 and [email protected] .
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U.S. Attorney Andrew Birge Urges the Public to Continue Reporting Suspected COVID-19 FraudRead the Press Release
Birge says residents reporting internet and phone scams are like a "neighborhood watch" and his office is actively pursuing those leads
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge urged the public to continue reporting suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected]. He also urged the public to continue reporting suspected price gouging to the Michigan Attorney General’s Office by calling 877-765-8388 or reporting online at www.michigan.gov/ag.
"My office is actively pursuing leads brought to our attention thanks to these hotlines. The scammers know we are home more and on our computers more, so they will try to take advantage. But that also means residents can be a very effective ‘neighborhood watch’ for phone and on-line schemes by reporting them."
The kinds of scams already getting reported locally or around the country include:
• Individuals and businesses selling cures, treatments or testing kits for COVID-19 that are fake.
• Robocalls offering valid COVID-19 healthcare products, like masks, for sale with no intent to deliver.
• Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
• Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to computer systems for ransom.
• Solicitations for donations fraudulently for illegitimate or non-existent charitable organizations.
• Medical providers obtaining patient information for COVID-19 testing and then using that information to fraudulently bill for other tests and procedures.
Even if a scam seems like it is run from somewhere outside of West Michigan, U.S. Attorney Birge says his office can help. "Federal law enforcement has a long reach," Birge reminded. The NCDF coordinates complaints with all U.S. Attorney’s offices and 16 additional federal law enforcement agencies, as well as state Attorneys General and local authorities. To find more about Department of Justice resources and information, please visit www.justice.gov/coronavirus.
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Mail Thief Sentenced for Bank Fraud, Identity TheftRead the Press Release
Defendant used stolen IDs to negotiate forged, stolen checks
GRAND RAPIDS, MICHIGAN — U.S Attorney Andrew Birge announced that Kristine Marie Jung, 36, of Kalamazoo, Michigan was sentenced yesterday to 48 months’ imprisonment by U.S. District Judge Paul L. Maloney. Jung was part of a group of individuals in Kalamazoo involved in a "mailboxing" ring. She and her accomplices stole checks, credit cards, driver’s licenses and other identity documents from residential mailboxes, unattended purses and parked cars. They then forged and altered the checks, and used some of them to purchase merchandise at local retail stores. In some cases, they made them payable to people whose identification documents they had stolen, and impersonated those people in order to cash the checks at financial institutions.
In June 2019, the Kalamazoo County Sheriff’s Department was alerted that someone had used a local resident’s stolen driver’s license to open a fraudulent account. Using surveillance footage, analysis of bank records, and witness interviews, the U.S. Postal Inspection Service determined Jung was the perpetrator. When Jung was arrested that same month, she was found in possession of stolen checks and identification documents, as well as equipment commonly used in forging and counterfeiting checks. These included chemical solvents, sponges and Exacto blades used to remove ink from checks. Jung confessed she had been committing identity theft to support her methamphetamine habit.
Jung’s sentence included three concurrent 24-month terms for bank fraud and two counts of mail theft. She will also serve a mandatory two year consecutive sentence for aggravated identity theft, because she used another person’s identity in the commission of a felony. Three other Kalamazoo "mailboxers" from Jung’s social circle were sentenced last spring by U.S. District Judge Janet T. Neff for similar conduct. Beatrice Michael Brown, Shadow Nicole Kornmiller and Jessica Ann Ledger received sentences of 27, 33 and 51 months respectively.
In imposing the four-year total sentence, Judge Maloney noted the defendant’s long history of retail fraud convictions. He also observed that "The security of the Postal System is important to all Americans," and said those who steal from the mail "need to understand that they will pay a heavy price in the federal court system." Judge Maloney commended the defendant for finishing her GED while awaiting sentencing, and recommended the Bureau of Prisons house her at a facility with a drug treatment program. "It may be easy to steal from residential mailboxes, but it’s hard to escape punishment. Anyone considering it should realize it’s not worth the price they will eventually pay," said U.S. Attorney Birge.
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Kalamazoo Man Gets 27 Years for Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced that Anthony Donal Short, 39, of Kalamazoo, Michigan, was sentenced to serve 27 years in the Federal Bureau of Prisons for coercing and using a minor to produce child pornography. U.S. District Judge Paul L. Maloney also imposed a period of supervised release of 8 years to follow his incarceration.
In sentencing Short, Judge Maloney stated that he was troubled by Short’s abuse and exploitation of a child in his care and the betrayal of trust. Short came to the attention of law enforcement after the victim reported to law enforcement that she had been sexually molested by Short while they were living in Alaska. The FBI confronted Short and he admitted to taking sexually explicit images of the victim. Forensic examination of his computers and cell phones confirmed the crimes. In October 2019, Short pleaded guilty to producing child pornography of the child in January and March 2013, when she was 10 years old, and producing more pornographic images of the child in February 2015, when she was 12.
In announcing the sentence, Birge stated, "Short betrayed the fundamental trust of a child and used her for his own depraved purposes. We will always hold producers of child pornography accountable and seek justice on behalf of the victims."
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case was prosecuted by Assistant U.S. Attorney Daniel Mekaru and investigated by the FBI.
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Former Security Guard Sentenced for Possession of FirearmsRead the Press Release
Defendant had been involuntarily committed to a mental institution
GRAND RAPIDS, MICHIGAN — U.S Attorney Andrew Birge announced that Joseph James Shingola II, 50, of Comstock Park, Michigan, was sentenced today to 36 months’ imprisonment by U.S. District Judge Janet T. Neff. Shingola was committed to a mental institution by the Kent County Probate Court in 1988, after he accidentally shot and killed his best friend. For much of his adult life he was employed as an armed security guard, and had a permit to carry a concealed weapon off duty. Shingola obtained the permit and his weapons by concealing his commitment on applications and background check forms. The commitment was filed before such orders were routinely shared with law enforcement.
In August 2018, agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) received a tip that Shingola was a prohibited person in possession of firearms. They learned he had several prior firearms-related contacts with local law enforcement, including recently showing a woman a pistol after a traffic dispute. When agents went to talk to Shingola at his house, he refused, and drove away to hide his weapons at his mother’s house. ATF executed search warrants and recovered an AR-15 style semiautomatic assault rifle, two semiautomatic pistols, several other long guns, magazines and ammunition.
While awaiting trial, Shingola asked his 17-year-old daughter to buy him a gun in her name when she turned 18. She refused and told her mother, whom he assaulted when she confronted him. Shingola afterward pled guilty to domestic violence assault in the 63rd District Court (Kent County) and pled guilty to being a prohibited person in possession of firearms in U.S. District Court. In imposing the three-year sentence, Judge Neff noted the defendant’s history of impulsive and violent behavior, and said "deterrence and protection of the public are of paramount importance." She recommended the Bureau of Prisons house him at a facility specializing in mental health treatment and counseling.
"Consistent with the Department’s Project Guardian, we’re prioritizing the enforcement of federal laws that prohibit possession of a firearm, such as by felons and the mentally ill. Those laws exist for good reason: the risk to the safety of the community," said Birge.
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Petoskey Man Gets 11 Years for Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN -Timothy Gerard Reader, 66, of Petoskey, Michigan, was sentenced to serve 11 years in the Federal Bureau of Prisons for possessing child pornography and for violating the terms of his supervised release. U.S. District Judge Gordon J. Quist also ordered that Reader spend the rest of his life on supervised release.
In 2006, Reader was sentenced in federal court to serve 10 years in prison and 9 years of supervised release for possessing child pornography. After completing his custodial sentence, Reader began his supervised release. As part of the terms and conditions of his supervised release, Reader was not permitted to have a cell phone with internet access. During a visit to Reader’s home in 2019, a probation officer discovered that Reader had two cell phones with internet access and 32 memory cards. When confronted, Reader admitted to possessing more child pornography. Homeland Security Investigations and the Michigan State Police opened a new investigation and discovered that the cell phones and memory card contained more than 2 million sexually suggestive images of children. Within that collection were hundreds of images of child pornography. At sentencing, Judge Quist, ordered Reader to serve another 10 years in prison for possessing more child pornography and one additional year for violating his supervise release.
“Protecting the homeland includes developing and implementing unique investigative methods to identify child predators,” said Vance Callender, Special Agent in Charge of HSI in Michigan and Ohio. “After already serving a decade for similar crimes, Mr. Reader was again identified committing depraved acts. HSI invests significant resources and manpower to protect children.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site:www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case was prosecuted by Assistant U.S. Attorney Daniel Mekaru and investigated by Homeland Security Investigations, the Michigan State Police, and the United States Probation Office.
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