Western District of Michigan
Press releases recorded for this federal judicial district.
Kalamazoo Felon Gets 37 Months for Gun PossessionRead the Press Release
GRAND RAPIDS, MICHIGAN - Darien Montrel Vaughn-White, 25, of Kalamazoo, Michigan, was sentenced to serve 37 months in the Federal Bureau of Prisons for possessing a handgun after being convicted of a felony. U.S. District Judge Paul L. Maloney also imposed a period of supervised release of 3 years.
In July 2018, as part of a violent crime reduction initiative, the Kalamazoo Department of Public Safety advised Vaughn-White that his gun-related criminal activity had come to the attention of law enforcement. KDPS warned him that further violent behavior and gun possession could result in federal prosecution. At same time, Vaughn-White was offered the option of guidance and social services. In September 2019, KDPS officers saw Vaughn-White in a fight. After he left the scene, officers stopped him. Officers found him in possession of a 9mm semiautomatic handgun with a 30-round extended magazine. A federal grand jury indicted Vaughn- White and he later pleaded guilty to his illegal possession. At sentencing, U.S. District Judge Maloney commented on the seriousness of Vaughn-White’s illegal possession, the poor choice of going to a place where he knew there would be a fight, and the danger posed by the high-capacity semi-automatic handgun. Judge Maloney observed that Vaughn-White had the potential to rise beyond his situation and expressed his hope for Vaughn-White’s future.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. As part of this strategy, the U.S. Attorney’s Office participates in Kalamazoo’s Group Violence Intervention (GVI) strategy. GVI is designed to reduce homicide and gun violence, minimize harm to communities by replacing enforcement with deterrence, and foster stronger relationships between law enforcement and the people they serve.
This case was prosecuted by Assistant U.S. Attorney Daniel Mekaru and investigated by the Kalamazoo Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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Engineering Grad Sentenced for Lying to FBIRead the Press Release
Aaron Fein concealed using and trying to make mass casualty weapons
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced that Aaron William Fein, 25 years old, of Grand Rapids, was sentenced today to 27 months’ imprisonment by U.S. District Judge Paul L. Maloney. Fein pled guilty in July to lying to FBI agents about renting and training with an AR-15. Upon his release, Fein will be confined to his home and closely supervised by the U.S. Probation Office for 3 years. Both in custody and after his release, Fein will receive mental health treatment and counseling. As a result of his conviction, he is barred from possessing firearms in the future.
Task Force Agents first became aware of Fein in August, 2018, when he attempted to cross into Canada without proper documentation. When he returned, U.S. Customs and Border Protection agents found documents and materials in his car relating to bomb making and jihadism. Fein admitted having bomb-making materials at his home, and told agents he was interested in mass shootings. During the following months, Task Force Agents kept close tabs on Fein, including encouraging him to seek counseling.
On several occasions last year, Fein obtained and attempted to obtain firearms and ammunition, but agents interceded. Agents eventually filed a petition for mental health treatment, and the Kent County Probate Court ordered Fein not to possess any firearms. In April, 2019, agents learned Fein had rented an AR-15 style semiautomatic assault rifle and trained with it at a firearms range in eastern Michigan. When they apprehended him soon after, he falsely stated he had not touched any guns. Video recordings from the range clearly showed him shooting the rifle. After additional investigation, agents learned Fein had bought metalworking tools. They arrested him at his residence, and found unassembled parts for multiple AR-15 rifles, as well as radio transmitters and electrical components for an improvised explosive device. Fein has a college degree in engineering.
District Judge Maloney imposed an enhanced sentence in this case based on several factors, including obstructing justice by asking a fellow inmate to help him dispose of evidence. Judge Maloney concluded a substantial term of incarceration was necessary because “Mr. Fein is a significant risk to the public.”
Aaron Fein's behavior dictated that law enforcement get involved so that he would not continue to pose a danger to our communities," said FBI Special Agent in Charge Steven M. D'Antuono. "Today's sentence reflects a balance of the need to protect the public - by preventing Mr. Fein from purchasing weapons - with the recognition that he should be afforded the opportunity to receive the mental health services he needs.
This investigation was a joint effort of the Federal Bureau of Investigation, Homeland Security Investigations, U.S. Customs and Border Protection, the Kent County Sheriff’s Office and the Michigan State Police.
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Convicted Felon Sentenced to More than Ten Years in Prison for Illegaly Possessing Ammunition Used in A Lansing ShootingRead the Press Release
GRAND RAPIDS, MICHIGAN – United States Attorney Andrew Birge announced today that Narrion Lamont Caston, 23, of Lansing, Michigan, was sentenced to serve 120 months in the Federal Bureau of Prisons for illegal possession of ammunition, and 14 months for violations of his Federal supervised release. He will serve the terms consecutively. In sentencing Caston, U.S. District Court Judge Janet T. Neff noted that Caston’s undeterred penchant for firearms and ammunition posed a serious danger to the community.
Caston pled guilty to being a felon in possession of ammunition last November. Caston is prohibited from possessing firearms or ammunition due to multiple prior felony convictions. At the time Caston illegally possessed the ammunition, he was only one month into a three-year term of federal supervision for a previous conviction for being a felon in possession of a firearm. At the sentencing hearing, a detective from the Lansing Police Department testified that the ammunition Caston illegally possessed was found in a car after Caston shot into another vehicle, hitting a Lansing area resident in the leg.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
"I express my appreciation to our federal and state law enforcement agencies for their partnership with this investigation," said Daryl Green, Chief of the Lansing Police. "Caston recklessly endangered the lives of many in our community and this investigation is a testament of collaboration between law enforcement and community members, all working to create safer communities." In announcing the sentence, U.S. Attorney Birge stated, "holding dangerous convicted felons accountable through federal prosecution is essential to our message of deterrence."
This case was investigated by the Lansing Police Department Detective and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Erin Lane prosecuted the case.
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Ludington Man Charged with Stealing from the SS Badger Ferry CompanyRead the Press Release
Paul Patrick Piper faces federal bank fraud and tax charges
GRAND RAPIDS, MICHIGAN — Paul Patrick Piper, 57, of Ludington, Michigan, was charged with bank fraud and federal income tax offenses today in a felony information filed in the United States District Court in Grand Rapids, Michigan.
According to the felony information, 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. As detailed in the felony information, Piper defrauded various financial institutions and the company in an amount of at least $550,000.00, 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.
If convicted, 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.
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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Las Vegas Man Sent to Prison for Scheme to Defraud Mortgage LenderRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Robert Lyle Buckhannon, 59, of Las Vegas, Nevada, was sentenced by U.S. District Judge Janet T. Neff to serve 24 months in federal prison for his role in a conspiracy to defraud a California mortgage lender in connection with a Battle Creek business, On Deck Sports Bar & Grill. Buckhannon will spend two years on court supervision following release from prison and was ordered to pay $467,213.98 in restitution to his victims and a $1,000 fine.
“West Michigan is not a safe zone for fraudsters,” commented U.S. Attorney Birge. “Mr. Buckhannon brought his scheming ways here and now he’s headed to prison.”
In July 2019, Buckhannon pleaded guilty in a Grand Rapids federal courtroom to conspiracy to commit wire fraud. Buckhannon admitted that, in 2013, he sent fake lease agreements and fake rent checks to the mortgage lender purporting to show $42,000 in annual rental income to induce the lender to loan $456,000 to On Deck Sports Bar & Grill, a Battle Creek business owned by co-defendant Kelly DeMoss (a/k/a Kelly Flees). In truth, there were no tenants or leases in the building, only the restaurant. After fraudulently obtaining the loan proceeds, Buckhannon and DeMoss siphoned off $36,500 of the loan proceeds for the purchase of a personal residence, which had not been disclosed to the lender and which held no mortgage on the residence. Shortly after the fraud scheme was executed, On Deck Sports Bar and Grill was destroyed by fire on December 30, 2013.
Judge Neff’s sentence reflected in part that Buckhannon had previously been convicted of a wire fraud conspiracy in Nevada for his role in defrauding investors in connection with a hedge fund called the Vestium Equity Fund in which he was ordered to pay $239,686.19 in restitution to those victims. He is serving a three-year probationary sentence for that offense. The Court noted the need for punishment and specific deterrence given Buckhannon’s prior fraudulent conduct and other criminal history.
Buckhannon’s co-defendant, Kelly Flees, previously was sentenced by Judge Neff to serve one year on federal probation and to pay $30,654.42 in restitution for her role in the offense. Ms. Flees was convicted of misprision of a felony (having knowledge of Buckhannon’s felony offense, failing to report it to law enforcement, and taking an affirmative step to conceal the crime).
The case was investigated by the Grand Rapids office of the ATF and the Battle Creek Police Department. Assistant U.S. Attorneys Christopher O’Connor and Erin Lane prosecuted the case.
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Immigrant Sentenced for Defrauding Hopeful ImmigrantsRead the Press Release
Catholic Diocese employee embezzled fees for immigration assistance
GRAND RAPIDS, MICHIGAN — Monica Karina Mazei, aka Karina Puig, was sentenced today to 33 months’ imprisonment by Chief U.S. District Judge Robert J. Jonker. Mazei had been employed by the Catholic Diocese of Kalamazoo’s Immigration Assistance Program, where she helped clients and their relatives apply for visas, work permits, permanent resident status, citizenship, and other relief. In October 2019, Mazei pled guilty to an indictment charging her with wire fraud. She admitted that on numerous occasions between 2015 and 2019, she collected fees from certain clients and promised to process their petitions. Instead, she embezzled their money, and did not send in their paperwork. Mazei immigrated to the United States from Ecuador herself, and became a naturalized citizen in 1999.
Mazei concealed her scheme from the Diocese by not opening files for the clients she was defrauding. In some cases she deceived clients by requesting blank checks or money orders. She wrote “U.S. Department of Homeland Security” in the payee line of the copies she provided them as proof of payment. She then wrote her own name as payee on the actual instruments, and deposited them in her personal accounts. In other cases she took cash, which she simply kept for herself. In addition to the sentence of imprisonment, Chief Judge Jonker ordered Mazei to pay $58,998 in restitution to her identifiable victims.
“Mazei was given an opportunity to live the American dream,” said U.S. Attorney Andrew Birge, “but she cashed in on the dreams of others to line her own pockets.”
This case was investigated by Homeland Security Investigations (HSI) and the Kalamazoo Department of Public Safety.
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Federal Jury Convicts Wyoming Man of Distribution of Fentanyl Resulting in DeathRead the Press Release
Anthony Michael Assfy Faces a Mandatory Minimum of Twenty Years in Prison
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Anthony Michael Assfy, 29, of Wyoming, Michigan, was convicted of six federal drug trafficking charges after a three day jury trial. The convictions were for distribution 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, believing it to be heroin, 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 decedent 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 decedent, law enforcement discovered another 36 grams of fentanyl and nearly 4 grams of crack cocaine concealed on Assfy’s person upon booking him into the Kent County Jail.
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 executed a search warrant on a residence that Assfy used as a deal location. Law enforcement 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. "We are increasingly seeing 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. My office is committed to prosecuting drug dealers that cause deaths to the fullest extent of the law." Anthony Assfy’s sentencing hearing is currently scheduled for June 8, 2020 before Chief Judge Robert J. Jonker. He faces a mandatory minimum term of 20 years and a maximum of life 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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Self-Proclaimed “Professor of Pot” Sentenced to over 15 Years in Prison for Federal Marijuana-Trafficking ConvictionsRead the Press Release
Daniel Trevino manufactured and distributed marijuana throughout Michigan for years in violation of federal drug laws
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced today that Daniel Dario Trevino, 48, of Lansing, Michigan, was sentenced to serve 188 months in the Federal Bureau of Prisons for each of the following counts of conviction: conspiring to manufacture and distribute 100 kilograms of marijuana or 100 marijuana plants, maintaining a drug-involved premises (5 counts), and manufacture of 100 marijuana plants or more. Trevino was also sentenced to serve 60 months for two counts of manufacturing marijuana, and for one count of possession with intent to distribute marijuana. He will serve the prison terms concurrently. U.S. District Judge Paul L. Maloney also imposed a $10,000 fine and a 4-year period of supervised release.
In sentencing Trevino, Judge Maloney stated that despite recent legislative amendments regarding other controlled substances under federal drug laws, “the fact is: marijuana is still a schedule I controlled substance under federal law.” Judge Maloney described Trevino’s offense conduct as defiant, especially after federal law enforcement agencies executed search warrants at various locations in May 2016.
“As noted by Judge Maloney, marijuana remains illegal under federal law,” said U.S. Attorney Birge. “Trevino’s conduct not only violated federal law, but it also made a mockery of the state laws of Michigan. Trevino had ample opportunity to realize the illegal nature of his business, both under federal and state law, given the number of times his operations were searched. He would not stop,” stated Birge.
In August 2019, after a four-day trial, a jury convicted Trevino on ten federal marijuana trafficking-related charges. The federal convictions and prison term resulted from Trevino’s operation of marijuana dispensaries across the state of Michigan. Trevino was the owner of Hydro World, a marijuana dispensary that operated with storefronts in Lansing, Grand Rapids, Jackson, Mount Pleasant, and Flint between 2010 and 2017. Trevino’s Hydro World operated far outside the boundaries of not only federal law but also the Michigan Medical Marijuana Act. Trevino had prior felony drug convictions involving cocaine and marijuana. As a previously convicted drug felon, Trevino was only qualified to cultivate and possess limited amounts of marijuana under state law (but not federal law). Instead, Trevino cultivated thousands of marijuana plants and sold hundreds of kilograms of processed marijuana, generating gross sales close to $3 million.
Trevino’s Hydro World also provided a delivery service, where customers could call Hydro World in either Lansing or Jackson and have marijuana delivered to them at a place of their choosing. Trevino also leased space at his storefronts for other growers to sell marijuana, effectively creating a marijuana farmers’ market. Trevino’s storefronts and grow locations were searched by law enforcement at least sixteen times between 2010 and 2016. Despite these searches placing him on notice his conduct was illegal, Trevino always resumed his illegal operations shortly after each search and law enforcement interaction.
Trevino is the last defendant to be sentenced in this marijuana trafficking conspiracy. The Court previously sentenced co-defendants Daniel Lee Bachelder to 48 months in prison, Daniel Vernell Corbin to 44 months in prison, and Dolores Rachel Lopez to 24 months in prison after they all pleaded guilty for their respective roles in the marijuana trafficking conspiracy.
“Trevino, a serial violator of federal and state law on a significant scale, warranted the federal and state law enforcement attention he received” stated Keith Martin, Special Agent in Charge of the Drug Enforcement Administration’s Detroit Field Division. “As a convicted drug felon, Trevino was precluded from operating a marijuana dispensary of any type,” said Martin.
The case was investigated by the Drug Enforcement Administration (DEA), the Tri-County Metro Narcotics Team (TCM), the Jackson Narcotics Enforcement Team (JNET), the Kent Area Narcotics Enforcement Team (KANET), and the Bay Area Narcotics Enforcement Team (BAYANET) of the Michigan State Police, the Lansing Police Department, and the Flint Police Department. Assistant United States Attorneys Joel S. Fauson and Daniel T. McGraw prosecuted the case.
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Leader of Holland Methamphetamine Conspiracy Sentenced to More Than 19 Years in Federal Prison for Drug Trafficking and Obstruction of JusticeRead the Press Release
Matthew Boeve Organized and Led a Methamphetamine Distribution Conspiracy In Holland and Threatened Cooperating Witnesses on Facebook
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that on January 24, 2020, Matthew James Boeve, 30, of Holland, Michigan, was sentenced to serve 235 months in the Federal Bureau of Prisons for conspiring to distribute methamphetamine, and 120 months for aiding and abetting obstruction of justice. He will serve the terms concurrently. U.S. District Judge Paul L. Maloney also imposed a 5-year period of supervised release. In sentencing Boeve, Judge Maloney noted the harm methamphetamine distribution causes to the community and families, and that Boeve’s obstructive conduct struck at the heart of the justice system.
On September 3, 2019, Boeve pleaded guilty to conspiracy to distribute 500 grams or more of methamphetamine and endeavoring to influence, obstruct, or impede the due administration of justice by publicizing the names of witnesses in the underlying drug prosecution in an attempt to impede their testimony. Specifically, Boeve organized and led the conspiracy by selling methamphetamine, and by directing others to sell methamphetamine on his behalf. Additionally, while in custody awaiting trial on federal drug charges, Boeve directed others to publish and post to Facebook lists of witness names, and photographs of police reports with the names of witnesses underlined. The threatening posts caused at least one cooperating witness to contact law enforcement, fearing retaliation for his or her cooperation in the methamphetamine conspiracy prosecution.
In announcing the sentence, U.S. Attorney Birge stated, “West Michigan has recently seen an increase in the distribution of methamphetamine, which is an extremely dangerous drug that destroys lives. Those who choose to sell methamphetamine are on notice that it will result in serious consequences.” Regarding Boeve’s sentence for obstruction of justice, U.S. Attorney Birge reiterated law enforcement’s commitment to protecting witnesses: “Witnesses who come forward to testify in criminal prosecutions play a vital role in our justice system. When we work with witnesses, we make their safety a priority. Any threats, harassment, or attempts to obstruct or prevent their testimony will be met with serious consequences, including years in federal prison.”
“The West Michigan Enforcement Team (WEMET) is attacking the distribution of crystal methamphetamine head on,” stated D/F/Lt. Andy Fias, WEMET Section Commander. “In addition, we take the safety of all those who wish to cooperate very seriously, providing added protection when needed, and we seek prosecution of those individuals who threaten or cause them harm. The Boeve case is yet another great example of the cooperative efforts of law enforcement in West Michigan.”
Boeve is the last defendant to be sentenced in this methamphetamine distribution conspiracy and obstruction of justice prosecution. The Court previously sentenced co-defendants Philip Noah Bell to 70 months in prison and Kayde Joseph Metzler to 37 months in prison for their roles in the drug conspiracy, and co-defendant Mark Adrian Baker to 63 months in prison for his role in the obstruction of justice offense.
The Holland Police Department, the West Michigan Enforcement Team (WEMET) of the Michigan State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case. Assistant United States Attorney Daniel T. McGraw prosecuted the case.
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Department of Justice Reaches $5.5 Million Settlement with Van Andel Research Institute to Resolve Allegations of Undisclosed Chinese Grants to Two ResearchersRead the Press Release
WASHINGTON — The Department of Justice announced today that Van Andel Research Institute (VARI) has agreed to pay $5,500,000.00 to resolve allegations that it violated the False Claims Act by submitting federal grant applications and progress reports to the National Institutes of Health (NIH) in which VARI failed to disclose Chinese government grants that funded two VARI researchers. The settlement further resolves allegations that in a Dec. 21, 2018 letter, VARI made certain factual representations to NIH with deliberate ignorance or reckless disregard for the truth regarding the Chinese grants.
Andrew Birge, U.S. Attorney for the Western District of Michigan, said, “Our local institutions, like VARI, serve a vital role in raising West Michigan’s profile as a national player in cutting-edge biomedical research, but institutions everywhere must deal honestly and transparently when applying for U.S. government funding and respond appropriately when compliance issues arise. It’s unfair to other grant applicants and to the NIH for any institution to withhold requested information about whether the research that an institution wants the NIH to support may be getting funding from outside sources, specifically including foreign governments. False Claims Act penalties are harsh by design. I sincerely hope the word gets out on the importance of full disclosure with the government.”
“It is imperative that recipients of NIH grant funds properly report all sources of research support, financial interests and affiliations of individual researchers to ensure the proper and effective use of taxpayer dollars,” said Lamont Pugh III, Special Agent in Charge of HHS-OIG’s Chicago Region. “HHS-OIG will continue to investigate allegations of failures to properly report information to ensure the integrity of Departmental programs.”
Obtaining research funding from NIH is a highly competitive process, with only a small portion of eligible applications receiving funding each year. Nondisclosures and false statements to granting agencies are especially harmful because they distort competition, disadvantage applicants who play by the rules, and undermine agencies’ decision-making on the use of their limited resources.
As part of its grants application process, NIH requires recipient institutions to disclose all financial resources—including any other research grants—that are available to researchers and other key research personnel in support of their research endeavors (known as “Other Support” disclosures). Other Support disclosures allow NIH to independently evaluate, among other things, whether research submitted for taxpayer support is being funded by another source. During the term of a grant, NIH also requires recipient institutions to disclose whether certain aspects of federally-funded research will be, or have been, performed outside of the United States (known as “Foreign Component” disclosures). Research institutions, which apply for NIH grants on behalf of researchers and groups of collaborating researchers, make these Other Support and Foreign Component disclosures on or in connection with NIH forms.
VARI is an independent research institute in Grand Rapids, Michigan. Between Jan. 1, 2012, and Aug. 31, 2019, VARI received NIH grants for two researchers, including a researcher identified here as “Professor 1.” The government alleged that in applying for the NIH grants, and in submitting claims for federal grant funds, VARI did not disclose any foreign research funding for those researchers or any foreign components of their NIH-sponsored research. The government alleged, however, that both researchers received research funding from Chinese sources while VARI was applying for and receiving NIH funds on their behalf. The government specifically alleged that between Jan. 2012 and Dec. 2018, Professor 1 received grants and research support from a variety of Chinese sources, including the People’s Republic of China’s Thousand Talents Program. The Thousand Talents Program is in place with the purpose of returning talent, research, and technology to China for China’s benefit.
The government claimed that between Jan. 2012 and June 2018, VARI should have known about these foreign grants and disclosed them to NIH. The government alleged that while VARI had institutional policies and procedures in place to address conflicts of interest, VARI did not take adequate additional steps to investigate the researchers’ foreign funding sources despite receiving specific information about their Chinese affiliations. The government claimed, for example, that a Chinese institution sent VARI a letter stating that Professor 1 was receiving “generous support” from the Chinese Thousand Talents Program. The government also alleged that VARI knew that Professor 1 held a directorship at a Shanghai-based research institute—a collaboration between VARI and the Shanghai Institute of Materia Medica—that would involve Professor 1 applying for Chinese research grants to support work at the foreign institution.
The government claimed that VARI learned about certain of Professor 1’s Chinese grants in June 2018 while reviewing a press release for one of Professor 1’s publications. The government claimed that rather than confirming and disclosing the information to the NIH, VARI removed references to those grants from the proposed funding attributions in its press release. The government alleged that shortly thereafter, VARI received an Aug. 20, 2018 letter from NIH Director Francis S. Collins, M.D., Ph.D. that reminded recipient institutions of the need to disclose “support coming from foreign governments or other foreign entities” for their researchers. The government alleged that VARI then received a Nov. 30, 2018 e-mail from NIH that cited specific concerns about potential nondisclosures relating to Professor 1. The government claimed that VARI did not disclose Professor 1’s Chinese grants to NIH even after receiving this correspondence.
The government claimed that VARI instead retained an outside consulting firm, and, relying on that firm’s advice, sent a Dec. 21, 2018 letter to NIH in which VARI stated that it was not required to disclose information about Professor 1’s foreign grants because “there was no undisclosed overlap of any budgetary resources, commitment, or scientific endeavor” between the Chinese grants and the NIH grants. NIH, however, requires disclosure of all financial resources available in support of an individual’s research endeavors. The government further alleged that VARI, in representing to the agency that “there was no undisclosed overlap” between the Chinese grants and the NIH grants, did not know whether that statement was true.
U.S. Attorney Birge added that institutions concerned about a prior statement on a grant application should know that it is Department of Justice policy that entities or individuals that make “proactive, timely, and voluntary self-disclosures to the Department about misconduct will receive credit during the resolution of a False Claims Act case.”
This case was a cooperative effort among HHS-OIG, the FBI, and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Adam B. Townshend represented the United States
The claims resolved by the settlements are allegations only. There has been no determination of liability.
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Holland Man Sentenced to More Than Five Years in Prison for Obstruction of JusticeRead the Press Release
Mark Baker Used Facebook to Publicize and Threaten Cooperating Witnesses in a Methamphetamine Trafficking Conspiracy Prosecution
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew B. Birge announced today that on December 16, 2019, Mark Adrian Baker, 27, of Holland, Michigan, was sentenced to serve 63 months in the Federal Bureau of Prisons for aiding and abetting obstruction of justice. U.S. District Judge Paul L. Maloney also imposed a 3-year period of supervised release. In sentencing Baker, Judge Maloney made clear that this was a serious offense that threatened the very essence of the federal criminal justice system.
On July 31, 2019, Baker pleaded guilty to endeavoring to influence, obstruct, or impede the due administration of justice by publicizing the names of witnesses in an underlying methamphetamine trafficking conspiracy prosecution in a corrupt effort to impede their testimony. Specifically, at the direction of the methamphetamine trafficking conspiracy’s leader, Matthew James Boeve, who was in custody at the Newaygo County Jail awaiting trial on federal drug charges, Baker posted to Facebook lists of witness names, and photographs of police reports with the names of witnesses underlined and with the following captions:
"LETS PLAY A GAME… HOW MANY SNITCHES DOES IT TAKE TO CATCH Matt Boeve??? READ THE DAMN FACTS AND STOP BEING SOME DAMN TWACKS!!!! #freemattboeve #doingitright #snitchbitches"
"Share and tag so my boy boeve ppls can all see this bullshit in the papers on his case… [wink emoji] [rat emoji] #freemattboeve … #breathlessly … #goviralwithit"
The threatening posts caused at least one cooperating witness to contact law enforcement, fearing retaliation for his or her cooperation in the methamphetamine conspiracy prosecution. The posts are shown below, but with the government having subsequently obscured the witness names.
In announcing the sentence, U.S. Attorney Birge stated, "Witnesses who come forward to testify in criminal prosecutions play a vital role in our justice system. When we work with witnesses, we make their safety a priority. Any threats, harassment, or attempts to obstruct or prevent their testimony will be met with serious consequences, including years in federal prison."
"WEMET takes witness safety and protection very seriously," said D/F/Lt. Andy Fias, WEMET Section Commander. "We appreciate the swift action taken by the U.S. Attorney’s Office – Western District of Michigan in assisting us in this investigation. This case brought another organization to justice, responsible for trafficking large quantities of crystal methamphetamine into west Michigan. It is just another great example of the partnership we have with our federal partners in law enforcement."
On September 3, 2019, Boeve pleaded guilty to conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, and aiding and abetting obstruction of justice for his role in the threatening Facebook posts. Boeve is scheduled to be sentenced on January 6, 2020, and faces a mandatory minimum term of 10 years in prison and a maximum term of life in prison.
The Holland Police Department, the West Michigan Enforcement Team (WEMET) of the Michigan State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated this case and the underlying methamphetamine trafficking conspiracy. Assistant United States Attorney Daniel T. McGraw prosecuted the case.
Twelve Defendants Facing Federal Charges for Drug TraffickingRead the Press Release
AGENTS SEIZE METHAMPHETAMINE, COCAINE, AND MULTIPLE OTHER DRUGS TWELVE INDIVIDUALS ARRESTED
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew Birge announced today that his office secured arrest warrants for twelve separate defendants charged by criminal complaint with various drug trafficking crimes, including conspiring to distribute methamphetamine and other controlled substances in Calhoun County, Kalamazoo County, and elsewhere.
On the morning of December 11, 2019, over 100 federal, state, and local law enforcement officers executed arrest warrants and over a dozen search warrants in five different Michigan counties. Investigators seized cocaine, fentanyl, heroin, over a kilogram of methamphetamine (gross weight), over 50 pounds of processed marijuana and over 300 marijuana plants, and other controlled substances. Investigators also seized three handguns and over $50,000.
Further details of the allegations may be found in the complaint and 132-page supporting affidavit, which U.S. Magistrate Judge Ray Kent unsealed at the initial appearance of nine of the defendants on Wednesday, December 11, 2019. Three other defendants made their appearance on December 13, 2019.
The charges are the result of a multi-agency federal, state, and local investigation into the conspiracy conducted by Homeland Security Investigations (HSI), the Battle Creek Police Department, the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS CI), Emmett Township Police Department, Kalamazoo Department of Public Safety, St. Joseph Police Department, Calhoun County Sheriff’s Office, Kalamazoo County Sheriff’s Office, and Michigan State Police.
The charges in the complaint, which carry varying maximum penalties, including up to life in prison for some of the defendants, 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.
The following individuals were charged:
Name
Age
Residence
Andrew Rolando Bravo
37
Battle Creek, Michigan
Wayne Henry Hawley
40
Battle Creek, Michigan
Christopher Michael Dreams
43
Battle Creek, Michigan
Erineo Wallace
44
Lansing, Michigan
Sharell Lana-Mika Hall
32
Dearborn, Michigan
James Walter Shelton, Jr.
37
Battle Creek, Michigan
Jeremiah E. Smith
32
Kalamazoo, Michigan
Rodney Compton
30
Kalamazoo, Michigan
Mark Anthony Mosley
44
Battle Creek, Michigan
Cory Karl Cadieux
39
Battle Creek, Michigan
Troy Edward Bush
44
Kalamazoo, Michigan
Donald Bernard Mosley
49
Battle Creek, Michigan
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Justice Department Awards More Than $333 Million to Fight Opioid CrisisRead the Press Release
$4,096,482 Will Support Efforts in or including the Western District of Michigan
GRAND RAPIDS, MI – The Justice Department’s Office of Justice Programs today announced awards of more than $333 million to help communities affected by the opioid crisis. $4,096,482 will help public safety and public health professionals in the Western District of Michigan combat substance abuse and respond effectively to overdoses. OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan made the announcement during a visit with local, state and federal officials in West Virginia, one of the states hardest hit by the epidemic.
"The opioid crisis has destroyed far too many lives and left too many Americans feeling helpless and hopeless," said PDAAG Sullivan. "This epidemic—the most deadly in our nation’s history—is introducing new dangers and loading public health responsibilities onto the public safety duties of our law enforcement officers. The Department of Justice is here to support them during this unprecedented and extremely challenging time."
With more than 130 people dying from opioid-related overdoses every day, the Department of Justice has made fighting addiction to opioids—including heroin and fentanyl—a national priority. The Trump Administration is providing critical funding for a wide range of activities— from preventive services and comprehensive treatment to recovery assistance, forensic science services and research—to help save lives and break the cycle of addiction and crime.
The awards announced today support an array of activities designed to reduce the harm inflicted by these dangerous drugs. Grants will help law enforcement officers, emergency responders and treatment professionals coordinate their response to overdoses. Funds will also provide services for children and youth affected by the crisis and will support the nationwide network of drug and treatment courts. Other awards will address prescription drug abuse, expand the capacity of forensic labs and support opioid-related research.
U.S. Attorney Andrew Birge commented that: "The opioid crisis is a public health crisis and not just a law enforcement problem. The Department of Justice recognizes that reality with this financial support for important Justice and Mental Health Collaboration Programs and affected youth initiatives in West Michigan."
The following awards were made to organizations in the Western District of Michigan through the Justice and Mental Health Collaboration Program, which provides financial and technical assistance to facilitate collaborations between criminal justice, mental health and substance abuse treatment systems to serve individuals with mental illness or co-occurring mental illness and substance abuse issues. While not all awards made under the JMHCP program are focused explicitly on addressing the opioids epidemic, these Michigan efforts focus specifically on opioid-related issues.
Van Buren County $750,000
County of Muskegon $750,000
City of Muskegon $100,000
City of Battle Creek $750,000
In addition, the Michigan Department of State Police received $1,000,000 under the Opioid Affected Youth Initiative. This program helps recipients develop data-driven responses to opioid abuse.
In addition, Cass County received $746,482 under the Family Drug Court Program. This program helps build the capacity of those who receive funds to sustain existing family drug courts or establish new ones.
Information about the programs and awards announced today is available here. For more information about OJP awards, visit the OJP Awards Data webpage.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
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EPA and Justice Department Announce $245 Million Agreement for Cleanup at the Allied Paper Inc./Portage Creek/Kalamazoo River Superfund SiteRead the Press Release
WASHINGTON – The U.S. Environmental Protection Agency (EPA), U.S. Department of Justice, the Kalamazoo River Natural Resource Trustee Council, and Michigan Department of Environment, Great Lakes, and Energy (EGLE) today announced a proposed consent decree that would require NCR Corp. to clean up and fund future response actions at a significant portion of the Allied Paper Inc./Portage Creek/Kalamazoo River Superfund site. The consent decree also includes payments related to natural resource damages and past cleanup efforts at the site. The consent decree is subject to a 30-day public comment period.
“This agreement marks a milestone in efforts to clean up Superfund sites in the Great Lakes region, and especially to address the legacy of paper mill generated PCB contamination in the Kalamazoo River watershed,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “Under this settlement, cleanup and restoration efforts will be accelerated and that’s really good news for communities in the region and the environment.”
“This is a terrific settlement,” said EPA Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “It not only ensures that responsible parties will continue to clean up contamination at the Kalamazoo River Superfund site, but also ensures that both past and future costs incurred by the EPA and the state will be recovered.”
“Today’s agreement is a big step towards cleaning up the Kalamazoo River,” said EPA Regional Administrator Cathy Stepp. “This Administration is committed to cleaning up and restoring contaminated sites so they can be put back to productive use in the community.”
“This settlement is an important step for the State and the federal government in cleaning up contamination in and near the Kalamazoo River,” said Michigan Attorney General Dana Nessel. “I look forward to continued cooperation with our federal partners on this site to benefit our communities – including the cities of Plainwell and Otsego, and the townships of Gun Plain, Otsego, and Trowbridge – and to protect public health, safety, and welfare.”
“This settlement represents substantial progress in the cleanup and restoration of the Kalamazoo River,” said Liesl Clark, Director of EGLE. “The agreement requires NCR Corporation to take specific cleanup actions to address PCB contamination in and near the Kalamazoo River that will protect the public health and the environment. It also provides funds for the selection of natural resource projects to restore natural resources and help compensate the public for lost recreational opportunities within this important Southwest Michigan watershed.”
Since 2017, this Superfund site has been listed on the EPA Administrator’s Emphasis List of Superfund sites targeted for immediate, intense action. Each site on the list has a short-term milestone to provide the basis for tracking the site’s progress.
The Allied Paper Inc./Portage Creek/Kalamazoo River Superfund site is in Allegan and Kalamazoo counties and is divided into six segments, or operable units (OUs), that require cleanup. According to the settlement terms, NCR Corporation has agreed to spend approximately $135.7 million cleaning up three areas of OU 5. OU 5 includes 80 miles of the Kalamazoo River and three miles of Portage Creek. In addition, NCR will pay:
* $76.5 million to EPA for past and future costs in support of river cleanup activities;
* $27 million to natural resource trustees of the Kalamazoo River Natural Resource Trustee Council for natural resources damage assessment and claims; and
* $6 million to State of Michigan for past and future costs.
Historically, the Kalamazoo River was used as a power source for paper mills that were built along the river and a disposal site for the paper mills and the communities adjacent to the river. NCR arranged for disposal of carbonless copy paper contaminated with chemicals called polychlorinated biphenyls (PCBs) at the site. In the early 1970’s, PCBs were identified as a problem in the Kalamazoo River. In 1990, in response to the nature and extent of PCB contamination, the site was added to the National Priorities List, which includes the nation’s most serious uncontrolled or abandoned hazardous waste releases. EPA, working along with EGLE, has cleaned up three of the six operable units, removed nearly 450,000 cubic yards of contaminated material from the site, cleaned up and restored seven miles of the Kalamazoo River and banks, and capped 82 acres worth of contaminated material.
To learn more about this site, visit http://www.epa.gov/superfund/allied-paper-kalamazoo.
Background
EPA established the Administrator’s Emphasis List in December 2017 in response to recommendations from EPA’s Superfund Task Force. The list is comprised of sites identified by Administrator Wheeler and the EPA regional offices that will benefit from the administrator’s immediate attention or action.
The list serves as a mechanism to address delays in the cleanup of significant Superfund sites by specifying milestones that will facilitate and accelerate a site’s cleanup progress. EPA will consider removing a site from the list once the milestone is achieved and the cleanup activities at that site are back on track. The list is updated quarterly with sites moving on and off the list as needed. Removal from the Administrator’s Emphasis List does not change the site’s status on the NPL.
EPA remains committed to addressing risks at all Superfund sites, not just those on the Administrator’s Emphasis List. EPA continues to accelerate progress at all Superfund sites across the country.
The updated Administrator’s Emphasis List is available on the agency’s website at https://www.epa.gov/superfund/administrators-emphasis-list.
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Man Once Comitted to Mental Institution Convicted of Possessing FirearmsRead the Press Release
Former security guard admits knowing he should not have had guns
GRAND RAPIDS, MICHIGAN — Joseph James Shingola II, age 50, of Comstock Park pled guilty yesterday to being a prohibited person in possession of firearms. Shingola was involuntarily committed to a mental institution in 1988, which made him ineligible to possess firearms under federal law. He did not disclose the commitment in subsequent applications to purchase guns and carry them as a security guard.
In August of 2018, Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) received information that Shingola had been committed, which they confirmed through Probate Court records. When they contacted Shingola to advise him he could not possess firearms, he denied having any and drove to his mother’s house in Grand Rapids. Agents executed search warrants at both residences and found seven firearms; including an AR-15 style assault rifle, and two semiautomatic pistols hidden under a mattress.
Since his arrest, Shingola claimed he believed his commitment had been voluntary, and that he would not have possessed firearms if he had known he was prohibited. On November 7, 2019, however, Shingola violated his bond by asking his daughter to buy him a gun. She refused.
After a contested hearing, the Hon. Philip J. Green, United States Magistrate Judge revoked the defendant’s bond and ordered him jailed pending trial. Shingola changed his plea, and admitted today that he knew he was a prohibited person when he possessed the firearms seized by ATF.
This case was not Shingola’s first firearms-related contact with law enforcement: In 2017, the Kent County Sheriff’s Office took his guns away temporarily after an episode of erratic behavior. In 2018, Shingola displayed a semiautomatic pistol during a traffic-related incident with another motorist. “Mental health issues and guns do not mix,” said U.S. Attorney Andrew Birge. “Federal law prohibits those who have been ordered committed to mental institutions from possessing firearms and my office and our partners at ATF will work to see that this does not happen.”
The defendant will be sentenced by the Hon. Janet T. Neff, United States District Judge, at a date to be set by the Court. He faces up to 10 years’ imprisonment, a $ 250,000 fine, and the forfeiture of all his firearms. This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS); and ensures that federal resources are directed at those posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-projectguardian-nationwide-strategic-plan.
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Twenty-Four Member Crystal Methamphetamine Distribution Operation Totally DismantledRead the Press Release
The final four traffickers were convicted by a jury after ten days of trial.
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that a 24-member drug trafficking operation has been totally dismantled, following a federal jury’s conviction of the final four defendants yesterday. Darrell Lee-Lamont Summers II, 28, Daryl Kevin Cannon, 27, Timothy Roy Mason, 39, and Tremain Lamar Braxton, 31, all from Benton Harbor, were convicted of conspiring to distribute methamphetamine and related crimes after a ten-day trial before the Honorable Robert J. Jonker, Chief United States District Judge. The men face up to life in prison when they are sentenced next year, and mandatory minimum terms of ten years, except Braxton, who faces a fifteen-year minimum because of a prior drug conviction.
Braxton was arrested in August 2018 during the multijurisdictional takedown of the methamphetamine ring. The other three defendants were added to the case in April 2019. With these last four convictions, all twenty-four defendants have been convicted in the cases charged as a result of the investigation, nineteen by guilty plea and five at trial. Richard Farmer, Sr., was convicted by a jury in May.
The evidence at trial demonstrated that Summers and Cannon brought or sent, in total, hundreds of thousands of dollars to suppliers in California and Arizona, who subsequently shipped hundreds of pounds of methamphetamine back to Michigan through the mail to them and others in the organization, including Raymond Stovall. The cash deliveries and shipments took place between 2016 and 2018. Mason began buying pounds of methamphetamine from Stovall in Kalamazoo and graduated to travelling to Arizona to order methamphetamine directly from a supplier, which he shipped to addresses he controlled in Erie, Pennsylvania. Braxton sold single pounds of methamphetamine for Stovall and drove Stovall and others to drug deals. 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.
"Crystal methamphetamine has flooded West Michigan," said U.S. Attorney Birge. "Federal, state and local law enforcement agencies are acutely aware of the challenge and working together to respond. With this operation dismantled and the suppliers and local dealers removed from the community, we see the effectiveness of our cooperative efforts. But there is much more work to
be done."
"DEA and law enforcement partners are working together to safeguard Michigan communities against dangerous and lethal drugs," said Keith Martin, Special Agent in Charge of the Detroit Field Division of the DEA. "Organizations whose sole purpose is making a profit by spreading poisons will be dismantled and brought to justice."
"Dismantling drug trafficking organizations like this one is a critical part of the FBI’s mission and is essential to keeping our communities safe from the violence that often accompanies these groups," said Steven M. D’Antuono, Special Agent in Charge of the FBI Detroit Division. "The combined efforts of the FBI, DEA, SWET, and KVET once again demonstrate the importance of combining the strengths, resources and expertise of federal and local agencies to fight these drug-trafficking networks."
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. The case was tried by Assistant U.S. Attorneys Justin M. Presant and Jonathan Roth.
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Western Upper Peninsula Methamphetamine Suppliers Sentenced to PrisonRead the Press Release
MARQUETTE, MICHIGAN - United States Attorney Andrew Birge announced today that eight defendants have been sentenced to prison for their respective roles in dealing crystal methamphetamine in the Western Upper Peninsula:
Keith Lee Raymond, 31, formerly of Ewen, Michigan, was sentenced by Chief U.S. District Judge Robert J. Jonker to 90 months in prison for distribution of methamphetamine and 90 months for being a felon in possession of a firearm to run concurrently. Raymond was also sentenced to three years of court supervision upon his release from prison and a $500 fine.
Darian Frances Belongie, 30, formerly of Ewen, Michigan, was sentenced by U.S. District Judge Janet T. Neff to 120 months in prison for conspiracy to distribute more than 50 grams of methamphetamine. Belongie was also sentenced to serve a period of five years of court supervision upon her release from prison.
Pedro Francisco Gonzalez, 37, formerly of L’Anse, Michigan, was sentenced by U.S. District Judge Janet T. Neff to 60 months for distribution of more than 50 grams of methamphetamine and 60 months for possession of a firearm in furtherance of a drug trafficking crime, to run consecutively for a total of 120 months in prison. Gonzalez was also sentenced to serve a period of five years of court supervision release upon his release from prison.
Alan Michal Hollon, 29, formerly of L’Anse, Michigan, was sentenced by Chief U.S. District Judge Robert J. Jonker to 188 months in prison for conspiracy to distribute more than 50 grams of methamphetamine and 120 months for being a felon in possession of a firearm, to run concurrently. Hollon was also sentenced to serve a period of five years of court supervision upon his release from prison and a $2,000 fine.
Anthony Richard Duran, 28, formerly of Santa Monica, California, was sentenced by Chief U.S. District Judge Robert J. Jonker to 68 months in prison for conspiracy to distribute more than 50 grams of methamphetamine. Duran was also sentenced to serve a period of four years of court supervision upon his release from prison and a $750 fine.
Elizabeth Silvia Minnick, 24, formerly of Watersmeet, Michigan, was sentenced by Chief U.S. District Judge Robert J. Jonker to 72 months in prison for conspiracy to distribute five grams or more of methamphetamine. Minnick was also sentenced to serve a period of four years of court supervision release upon her release from prison.
Kathy Jo Harry, 41, formerly of Houghton, Michigan, was sentenced by Chief U.S. District Judge Robert J. Jonker to 27 months in prison for conspiracy to distribute five grams or more of methamphetamine. Harry was also sentenced to serve a period of three years of court supervision upon her release from prison.
Justin Henry Hartzog, 26, formerly of Watersmeet, Michigan, was sentenced by Chief U.S. District Judge Robert J. Jonker to 60 months in prison for conspiracy to distribute five grams or more of methamphetamine. Hartzog was also sentenced to serve a period of four years of court supervision upon his release from prison.
These sentences were the culmination of a long-term investigation by the Upper Peninsula Substance Enforcement Team (UPSET), the Bureau of Indian Affairs (BIA), Homeland Security Investigations (HSI), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) into methamphetamine distribution and illicit firearms possession on the west end of the Upper Peninsula.
“The interdiction of crystal methamphetamine is a high priority for the Upper Peninsula Substance Enforcement Team (UPSET),” said D/Lt. Timothy Sholander, Michigan State Police – UPSET Commander. “Crystal methamphetamine has become a scourge to Upper Peninsula communities, including tribal communities, and we worked with our federal law enforcement partners to target the suppliers who were plaguing these communities with their drug trafficking. These sentences should serve as a stark reminder to those who poison our communities that neither the use of the dark web nor interstate travel to procure drugs will provide a safe haven to them.”
“ATF is committed to reducing violent crime throughout the State of Michigan working in conjunction with our state, local, tribal and federal partners,” said ATF Special Agent in Charge James Deir. “Gonzalez, Hollon, and Raymond were peddling poison throughout the Upper Peninsula as well as illegally possessing firearms without any regard to the lives they ruined along the way. The citizens in these communities can sleep a little better knowing that these individuals are being held accountable for their actions and will no longer be available to sell drugs to anyone for some time to come.”
“HSI specializes in investigating transnational criminal organizations that operate across the U.S. and around the globe,” said Vance Callender, HSI special agent in charge for Michigan and Ohio. “These individuals conspired with multiple criminal organizations from Mexico to California and then to the Upper Peninsula to profit from the suffering of those in their community. HSI and its law enforcement partners are proud to have dismantled this illicit network.”
Assistant U.S. Attorneys Hannah Bobee, Paul D. Lochner, and Ted Greeley prosecuted these cases, along with then Assistant U.S. Attorney Maarten Vermaat.
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Battle Creek Men Sentenced to 60 Months Imprisonment on Fentanyl and Heroin ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – United States Attorney Andrew Birge announced today that Elias Deshawnte Mills and Ralph Knox II were each sentenced in federal court to 60 months in prison and four years supervised release for their roles in a conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl and a detectible amount of heroin.
This case involved two seizures of drugs. One seizure followed a traffic stop of a car carrying defendant Mills travelling from Detroit, where he obtained the fentanyl and other drugs, to Battle Creek. Battle Creek Police actually recovered the fentanyl from a woman’s body cavity after a trained canine notified law enforcement of the possibility of drugs by alerting on the driver’s seat where the woman was sitting. After a complete investigation, the woman was referred to state rather than federal authorities for consideration of charges. The other seizure followed a search of Knox’s home in Battle Creek where the defendants stored drugs. The fentanyl found in Knox’s home was particularly troubling because police recovered it from an open kitchen drawer in a house where four minor children resided. Both defendant Mills and defendant Knox had prior Calhoun County drug convictions.
The investigation was conducted by the Battle Creek Police Department and Homeland Security Investigations (HSI). Assistant U.S. Attorneys Vito S. Solitro and Kate Zell prosecuted the case.
“Fentanyl and other synthetic opioids continue to claim the lives of our loved ones,” said Vance Callender, HSI Detroit Special Agent in Charge. “HSI is working around the clock and around the world to dismantle the international smuggling networks that represent the supply chain for those who look to profit from the suffering of others. HSI maintains a global network of international law enforcement partners to protect the Homeland and U.S. financial infrastructure.”
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26 Defendants Convicted in Cocaine-Trafficking ConspiracyRead the Press Release
GRAND RAPIDS, MICHIGAN —United States Attorney Andrew Birge announced today that a federal jury in Kalamazoo, Michigan returned guilty verdicts against four defendants following a nine-day trial: Ryan Rashad Brown, of Wyoming, Douglas Emmanuel Carey III, of Grand Rapids, Marvin Quantez Nix, of Grand Rapids, and Salena Kolarich, also known as Salena Sparr, of Columbus, Ohio. These four defendants are among 26 total defendants who have been convicted for their respective offenses and roles in furtherance of a cocaine-trafficking conspiracy spearheaded by co-defendant Howard Mayfield. Mayfield’s drug-trafficking organization distributed kilograms of cocaine in and around Grand Rapids between April 2017 and May 2018. Mayfield pleaded guilty to the cocaine-trafficking conspiracy on June 20, 2019 and is pending sentencing, currently scheduled for February 3, 2020.
Defendants Ryan Brown, Douglas Carey, and Marvin Nix are among numerous convicted co-defendants who obtained cocaine from Mayfield and re-distributed it to customers in its powder form or as crack cocaine. Defendant Salena Kolarich collected $50,000 cash in drug proceeds from Mayfield and delivered that money to Mayfield’s Houston-based cocaine supplier through wire transfers and by personally transporting approximately $30,000 on a commercial flight to Houston.
In announcing the convictions, U.S. Attorney Birge stated, "Cocaine is a powerful drug that continues to wreak havoc on individual users, their families, and their communities. Cocaine overdose death rates have risen significantly in recent years, particularly in the Midwest, and about 1 in 5 overdose deaths involves cocaine. Along with our law enforcement partners, we take cocaine offenses seriously and are invested in disrupting the channels drug-traffickers use to distribute illegal and dangerous drugs in the Western District of Michigan."
Drug Enforcement Administration (DEA) Detroit Division Special Agent in Charge Keith W. Martin said, "The conviction of Mayfield’s drug-trafficking organization sends a strong unified message that the distribution of cocaine, or any other illicit drug, will not be tolerated. The commitment and relentless efforts of the men and women of the DEA, along with our law enforcement partners, took a tremendous amount of cocaine off of the streets in the communities throughout southwest Michigan. Dismantling cocaine trafficking organizations, and preventing the devastation caused by them, is a top priority to law enforcement. We will tirelessly continue to identify, investigate, and disrupt those involved in such ruthless criminal activity and bring them to justice."
The Metropolitan Enforcement Team (MET) of the Michigan State Police began the investigation into Mayfield’s drug-trafficking organization in early 2017, in partnership with the DEA. The Kentwood Police Department provided key support throughout the case, including by using one of its detectives in an undercover capacity to purchase cocaine and heroin directly from Mayfield. Numerous other law enforcement agencies assisted with operations during the two-month period the DEA had a wiretap on Howard Mayfield’s phones, including the Arkansas State Police and the Vice Unit of the Grand Rapids Police Department.
"This case is an excellent example of the fantastic results that can be achieved when Federal, State, and Local law enforcement pool their resources and personnel to tackle the narcotics problems facing West Michigan. In this case a large Drug Trafficking Organization was effectively dismantled due to these cooperative efforts. The Metropolitan Enforcement Team welcomes any opportunity to leverage resources in the effort to combat dangerous drug dealers adversely affecting our communities," said D/Lt Nathan Grant, commander of MET.
Kentwood Police Chief Richard Roberts likewise is pleased with the collaborative efforts of all of the agencies involved in this case. "Illegal drug use is not only an issue for us in Kentwood, but for all communities across the country. Being a part of this joint effort to combat this problem has been very rewarding. The success of this case also speaks to the professionalism and ability of the men and women of the Kentwood Police Department," said Chief Roberts.
The Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, which employs the expertise of the DEA and numerous federal agencies to comprehensively target and dismantle drug trafficking and money laundering organizations, supported this multi-agency investigation. During the arrests of the defendants and execution of associated search warrants in this case, federal and state investigators seized over 9 kilograms of cocaine and over $100,000 in drug proceeds.
Defendant
City
Conviction(s)
Sentencing
Howard Anthony Mayfield
Grand Rapids
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine (5 kilograms or more) and Crack Cocaine
February 3, 2020
Statutory penalties:
10 years to life
Wilbert Gentry
Houston, TX
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine (5 kilograms or more) and Crack Cocaine
November 18, 2019
Statutory penalties:
10 years to life
Craig Schenvinsky James
Muskegon
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine (5 kilograms or more) and Crack Cocaine
November 18, 2019
Statutory penalties:
10 years to life
Quincy Delon Lofton
Detroit
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine (5 kilograms or more) and Crack Cocaine
January 8, 2020
Statutory Penalties:
5 years to 40 years
Ryan Rashad Brown
Wyoming
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine (500 grams or more) and Crack Cocaine
Possession with Intent to Distribute Cocaine (500 grams or more)
Possession with Intent to Distribute Cocaine
March 9, 2020
Statutory Penalties:
5 years to 40 years
Yvette Sheree Brown
Grand Rapids
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine (500 grams or more) and Crack Cocaine
December 6, 2019
Statutory Penalties:
5 years to 40 years
Jennifer Tadeo
Grand Rapids
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine (5 kilograms or more) and Crack Cocaine
84 months in prison
Donald Bernard Gardner
Grand Rapids
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine and Crack Cocaine (28 grams or more)
January 21, 2020
Statutory Penalties:
10 years to life
Elsie Bridget Boston
Houston, TX
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine (5 kilograms or more) and Crack Cocaine
December 10, 2019
Statutory Penalties:
10 years to life
Martin Luther Dukes
Grand Rapids
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine and Crack Cocaine
63 months in prison
Douglas Emmanuel Carey III
Grand Rapids
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine and Crack Cocaine
Possession with Intent to Distribute Cocaine (2 counts)
March 9, 2020
Statutory Penalties:
0 years to 20 years
Monica Laster
Grand Rapids
Unlawful use of Communication Facility to Facilitate Drug Felony
January 6, 2020
Statutory Penalties:
0 years to 4 years
Nicole Lynn Starr
St. Johns, MI
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine and Crack Cocaine
57 months in prison
Shamekia Liptrot
Grand Rapids
Unlawful use of Communication Facility to Facilitate Drug Felony
January 6, 2020
Statutory Penalties:
0 years to 4 years
Carlus Bridgeforth
Grand Rapids
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine (500 grams or more) and Crack Cocaine
46 months in prison
Martinellus Nix
Grand Rapids
Possession with Intent to Distribute Cocaine
February 3, 2020
Statutory Penalties:
0 years to 30 years
Demarcus Pinder
Grand Rapids
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine and Crack Cocaine (28 grams or more)
144 months in prison
Trebarius McGee
Grand Rapids
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine
January 27, 2020
Statutory Penalties:
0 years to 30 years
Pedro Antonio Mateo
Grand Rapids
Possession with Intent to Distribute Cocaine
54 months in prison
Marvin Quantez Nix
Grand Rapids
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine and Crack Cocaine
Possession with Intent to Distribute Cocaine
March 16, 2020
Statutory Penalties:
0 years to 30 years
Stephawn McFadden
Grand Rapids
Possession with Intent to Distribute Cocaine
November 18, 2019
Statutory Penalties:
0 years to 30 years
Troy Jordai Lewis
Grand Rapids
Possession with Intent to Distribute Cocaine
December 6, 2019
Statutory Penalties
0 years to 30 years
Jeffrey Allan Dean
Grand Rapids
Possession with Intent to Distribute Cocaine
January 21, 2020
Statutory Penalties:
0 years to 20 years
Jessica Warren née Gatica
Grand Rapids
Possession with Intent to Distribute Cocaine
February 10, 2010
Statutory Penalties:
0 years to 30 years
Taniedra Sade White
Houston, TX
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine and Crack Cocaine
33 months in prison
Salena Kolarich, also known as Salena Sparr
Columbus, OH
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine (500 grams or more) and Crack Cocaine
Unlawful use of Communication Facility to Facilitate Drug Felony
Interstate Travel in Aid of Racketeering
March 16, 2020
Statutory Penalties:
5 years to 40 years
One additional defendant, Tamara Nelson, née Mingo, has been charged by Superseding Indictment with conspiracy to distribute and possess with intent to distribute cocaine and cocaine base, and the case remains pending. The charges in an indictment are merely accusations, and the defendant is presumed innocent until and unless proven guilty in a court of law.
This case was investigated by the DEA, the Michigan State Police, the Metropolitan Enforcement Team, the Kentwood Police Department, and the Grand Rapids Police Department. The case was prosecuted by Assistant United States Attorneys Kate Zell and Daniel T. McGraw.
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U.S. Attorney Birge Announces Project Safe Neighborhoods Funding to Reduce Violence in Seven West Michigan CommunitiesRead the Press Release
Local law enforcement leaders have decided to use the funds to support violence prevention programs, community engagement and alternative opportunities for those who might otherwise take part in violence
GRAND RAPIDS, MICHIGAN – United States Attorney Andrew Birge announced today that the Department of Justice awarded a total of over $340,000 to seven local communities through the Western District of Michigan’s Project Safe Neighborhoods (PSN) grant. The goal of the PSN program is to reduce violent crime rates. With that goal in mind, a committee of local law enforcement leaders determines how to allocate the federal funds. In Western Michigan, a committee of local prosecutors and law enforcement departments from Grand Rapids, Lansing, Kalamazoo, Benton Harbor, Muskegon and Battle Creek collectively decided to focus on funding violence prevention, building strong community-law enforcement relationships, and providing alternative opportunities for those who might engage in violent crime.
In Battle Creek, a $37,000 grant will partially fund the salary of a victim advocate as part of Battle Creek Police Department’s Violence Interruption Initiative. This initiative takes a holistic approach to tackling violence as a public health problem. The victim advocate will work with law enforcement to identify and intervene with those who may be looking to leave a violent lifestyle and will assist victims of violence and their families as they navigate the legal process while coordinating services from governmental and non-governmental providers.
The Boys and Girls Club of Benton Harbor will receive $37,000 for Project Learn. Project Learn will provide youth development programming, including tutoring, computer technology programs, mentoring, and club activities to children ages six to fourteen living in one of the Benton Harbor area’s most violent neighborhoods. Project Learn will be provided in the children’s neighborhood 5 days a week, 36 weeks a year and includes transportation for members. "My hope is that with this PSN sub-grant funding our Boys and Girls Club involvement with the youth in the neighborhood, residents will achieve a greater sense of community," said Michael Sepic, Berrien County Prosecutor. "It is that sense of community that, over time, will reduce the significant gun violence that plagues this neighborhood."
Kalamazoo’s Group Violence Intervention (GVI) strategy is a collaboration between community and law enforcement partners who come together to address offenders about the choices they face, the support the community has to offer them, and the opportunities and resources available to law-abiding citizens. "The Project Safe Neighborhood grant is vital to Kalamazoo being able to continue the Group Violence Initiative. This ongoing strategy is making Kalamazoo neighborhoods safer by significantly reducing the number of fatal and non-fatal shootings. I want to personally thank the Department of Justice and the United States Attorney’s Office for their role in helping my community," said Jeff Getting, Kalamazoo County Prosecuting Attorney. GVI’s award of $37,000 will partially fund the salary of a program coordinator who oversee activities, partnerships, and services associated with the program, working with street outreach and social services and liaising with law enforcement.
West Michigan Silent Observer obtained $18,500 for messaging about violence prevention and unsolved crime. In the Grand Rapids area, Silent Observer plans to offer rewards for tips on violent crime, to solicit information about unsolved homicide, to provide violence prevention materials to schools, and to print informational brochures in English and Spanish to spread the word about Silent Observer, crime prevention, and providing information to law enforcement that will help solve and prevent crimes.
Midnight Basketball will be a basketball league in Lansing for players ages sixteen to twenty-four and games will be Fridays and Saturdays from 8:00 pm to 1:00 am. Lansing Police Department members will join community players for the games with dual goals of providing a positive alternative activity at times prone to high instances of gun violence and building positive relationships between youth, police, community outreach groups, and faith-based organizations. There will also be a Basketball Leadership Academy offered once a week at community centers using basketball to teach leadership skills. These projects received approximately $37,000 in funding.
Lansing Police Department is also funding various community outreach programs, including Hoop It Up—providing officers with portable adjustable hoops and balls for pop-up basketball with the community; a Health and Fitness Club pairing youth ages 8 to 16 with officers, nutritionists, and personal trainers; welcome packages for new residents with crime prevention tips; and Light Up Lansing, providing porch light bulbs to keep violence-prone areas illuminated to prevent crime, while also giving officers a chance to build bonds with residents through positive interactions.
In Muskegon, a $17,000 grant will support three projects that share the goal of reducing youth violence in Muskegon County. Working with Silent Observer, the Muskegon Police Department will offer rewards for tips on violent crime. The Muskegon Police will also fund the Boys and Girls Club of the Muskegon Lakeshore to help train young adults who do not have a license because of the prohibitive cost of driver’s training classes. Transportation is an obstacle to youth not being able to obtain employment. Finally, the Muskegon Police will support the Social Justice Commission to host events on the last day of school before summer break. The goal of this program is to prevent the outbreak of violence, which has plagued the last day of school in the city.
Muskegon Heights Police Department is funding multiple community projects throughout their city. Implementing an integrated and holistic approach to reducing gun violence in their community, Muskegon Heights Police is collaborating with local organizations to support community basketball, baseball, and football programs for at-risk youth; host the Walk for UNITY community march; fund We Care mentors to interrupt and deter future violence in local neighborhoods; and support a variety of community events that will promote violence prevention. These projects received approximately $17,000 in funding.
The United States Attorney’s Office for the Western District of Michigan remains committed to supporting local law enforcement, community organizations, and residents to reduce violent crime in our district. The funds through the Project Safe Neighborhoods grant give communities the resources they need to implement local, comprehensive, and collaborative responses to violence. 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 has been a key component to the success of this program.
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Domestic Violence: The Latest Path to A Lengthy Term in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – Marking Domestic Violence Awareness month, U.S. Attorney Andrew Birge advised that domestic abusers are finding that their abusive conduct can have federal consequences. “Cases come to our attention due to domestic violence quite frequently. And, whether the case involves drugs, guns or anything else, the defendants with domestic abuse in their criminal record face significant penalties.”
U.S. Attorney Birge described several recent prosecutions and noted that: “These are neither the first nor will they be the last firearm cases that have come to our attention through a domestic violence investigation or where we’ll be citing that history in looking to have the offender locked up for a long time.” Those who are currently victims of domestic violence need to know: “Keeping guns from domestic abusers legally prohibited from possessing them is a national Department of Justice priority. Federal law has long barred convicted felons, as well as individuals subject to certain domestic violence protective orders or convicted of domestic violence misdemeanors, from possessing firearms. Those who engage in or have a history of domestic violence should consider themselves warned.”
Donnell Davenport was a serial domestic violence offender. He pleaded guilty to a federal felon in possession of a firearm charge and is scheduled for sentencing on December 9. When Davenport’s girlfriend told him that she wanted to break up, he told her that if he couldn’t have her, no one would. Fearful, she fled to a neighbor’s house and called the police. Officers drove to the house, and Davenport sped away through the residential neighborhood at speeds reaching 70mph. When police finally PIT-maneuvered his car, Davenport tossed a handgun from his window as the vehicle spun to a stop. Davenport now faces up to 10 years in a federal prison.
Craig David Overla, 34, most recently of Ludington, Michigan, was sentenced to serve ten years in the Federal Bureau of Prisons for being a felon in possession of firearms and for possessing stolen firearms. In March 2019, Police discovered the firearms that formed the basis of his federal charges while investigating severe injuries inflicted on his two-month-old son. Police subsequently learned that shortly before the baby suffered severe injuries, Overla had threatened to kill his thengirlfriend and the two-month-old baby. The baby passed away after being in the hospital for approximately one month. Overla has not been charged with an offense arising out of the baby’s death.
Brandon Kelly likewise had a long list of criminal convictions, including two domestic violence convictions when he was caught in possession of a .38 caliber revolver. Kelly was recently sentenced to 60 months in a federal prison on the gun charge after the district court noted his history of violence and assaultive behavior.
Donte Darnell Blue also has an extensive criminal history that includes domestic violence. He was charged in federal court with possession with intent to deliver methamphetamine and carrying a firearm during and in relation to a drug trafficking crime. Blue could be sentenced to up to 20 years in federal prison on the drug charge and will have to serve at least five years consecutive to that on the gun charge. Blue pled guilty on October 29, 2019; a sentencing date has yet to be scheduled.
If you are or if someone you know is in an abusive relationship, call the Hotline today: 1-800-799-SAFE (7233) 1-800-787-3224 (TTY). #DomesticViolence
Other resources available:
Michigan Coalition Against Domestic and Sexual Violence
Lists resources for victims and domestic violence shelter information.
517-347-7000
http://www.mcedsv.org/Michigan Domestic Violence Prevention and Treatment Board
517-373-8144
https://www.michigan.gov/mdhhs/
Select Safety & Injury Prevention/Domestic ViolenceNational Coalition Against Domestic Violence
303-839-1852
www.ncadv.org/END
Ishpeming Woman Sentenced for CyberstalkingRead the Press Release
GRAND RAPIDS, MICHIGAN - Theresa Louise Harris, 56, of Champion, Michigan, was sentenced to serve 24 months in the Federal Bureau of Prisons for cyberstalking numerous victims in and around Marquette, Michigan. Chief U.S. District Judge Robert J. Jonker also imposed a two-year period of supervised release and a $10,000 fine.
From 2014 through August 2018, Harris continued a stream of harassment towards a former boyfriend and his family and friends consisting of thousands of unwanted contacts through spoofed phone calls, text messages, multiple fake Facebook accounts as well as many unsigned cards, letters and notes sent to the victim. Harris aided her harassment by hacking into multiple cell phone accounts and by creating fake social media accounts in the names of the victims and others. She collected personal information on the victims, including their social security numbers, dates of birth, and banking information. At sentencing, Harris apologized to the victim and his family and friends and acknowledged the harm that she had inflicted. Judge Jonker denied Harris’s request for leniency and observed that the persistent and pervasive conduct did not support a lesser sentence. As part of the sentence, Judge Jonker also ordered a mental health assessment and treatment for Harris.
U.S. Attorney Andrew Birge noted that October is Domestic Violence Awareness Month. “Cyberstalking is another form of mental and emotional abuse. The trauma inflicted can outlast physical scars. My Office is dedicated to protecting victims of domestic abuse, whether it manifests as physical assault or cyberstalking.”
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Maarten Vermaat and Daniel Y. Mekaru.
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Justice Department Awards over $273.4 Million to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
Bay Mills Indian Community, Hannahville Indian Community and Little Traverse Bay Bands of Odawa Indians in the Western District of Michigan Awarded over $1.8 Million in Funding
GRAND RAPIDS, MICHIGAN – The Department of Justice announced today that it has awarded over $273.4 million in grants to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.
"Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive," said Attorney General William P. Barr. "We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it."
Three Tribes in the Western District of Michigan were awarded a total of $1,890,469 in funding, as follows:
MICHIGAN
TOTAL AMOUNT:
Bay Mills Indian Community
$992,448
Corrections and Correctional Alternatives (BJA)
$580,840
Violence Against Women Tribal Governments Program
$411,608
Hannahville Indian Community
$764,822
Public Safety and Community Policing (COPS)
$88,742
Violence Against Women Tribal Governments Program
$676,080
Little Traverse Bay Bands of Odawa Indians
$133,199
Public Safety and Community Policing (COPS)
$133,199
United States Attorney Andrew Birge commented that: "These grants are welcome news. The Department of Justice has a trust responsibility with the Tribes in Michigan. And these funds will support Tribal efforts to enhance public safety and victim assistance in important ways, such as through improvements to the buildings that house their justice services, providing direct intervention and aid to victims of sexual assault, and securing equipment and training for their police departments."
Bryan Newland, Chairman of the Bay Mills Indian Community Executive Council, expressed his appreciation for the awards: "We are grateful for the support from our Trustee to help us in our work to create a justice system that protects women and children in our community, and that is focused on making our community a healthier place – rather than cycling repeat offenders in and out of jail."
Nationwide, 236 grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of today’s announced CTAS awards is available at: https://www.justice.gov/tribal/awards.
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Department of Justice Awards More Than $122 Million in Public Safety Funding to MichiganRead the Press Release
LANSING, MICHIGAN – Today, the Department of Justice announced awards of more than $122 million to support public safety efforts in Michigan. The funds will help law enforcement agencies and community organizations in jurisdictions across the state fight gun, gang, drug and sexual violence, and bring criminals to justice.
"The fight against crime is a never-ending one, and it is our front-line law enforcement officers who lead that fight, working around the clock to take criminals off the street while partnering with service providers to reduce and prevent crime, serve victims and at-risk youth, and combat domestic violence and sexual assault," said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. "Attorney General Barr is very pleased to make these resources available to the citizens of Michigan, who deserve to know that the Department of Justice is doing everything in its power to secure their communities, safeguard their schools and homes, and deliver justice on their behalf."
The awards include funds to hire and train law enforcement officers and to support state, local and tribal law enforcement activities. Funding will help agencies purchase body-worn cameras, investigate child exploitation cases, address domestic and sexual violence, improve criminal history records and administer victim service programs. Funds will also help jurisdictions prevent school violence, provide inmate reentry services, apply DNA technology to solving crimes and combat opioid and other drug abuse.
"We are proud to make these critical public safety resources available to help Michigan’s brave law enforcement officers reduce crime and protect the citizens of this great state," said Phil Keith, Director of the Office of Community Oriented Policing Services. "We are also grateful for the hard work, strong commitment and outstanding leadership of U.S. Attorneys Matthew Schneider and Andrew Birge, who represent the Justice Department’s most vital link between Washington and the communities of their districts. We congratulate the award recipients and look forward to seeing the benefits that these investments will yield."
"The grants announced today will give Michigan sheriffs and city police departments more resources to keep Michigan safe, and we hope these funds will offset some of the recent state budget cuts in Lansing," said Matthew Schneider, United States Attorney for the Eastern District of Michigan. "These grants will also provide community service organizations tools to help crime victims, keep our schools safe, and protect elder Michiganders from abuse. Our local law enforcement partners are the best in the country, and I’m proud to stand shoulder to shoulder with them to protect the citizens of Michigan."
"These awards are welcome news for our state, local and tribal law enforcement partners," said Andrew Birge, United States Attorney for the Western District of Michigan. "Large and small departments alike throughout West Michigan face resource challenges. These awards will help them achieve their shared mission of securing the safety and well-being of our communities."
Director Keith and Mike Costigan, Chief of Staff for OJP, highlighted the awards at today’s Rural Policing Forum, which was organized by the COPS Office, OJP’s Bureau of Justice Assistance and the U.S. Attorneys’ Offices for the Eastern and Western Districts of Michigan. The session was held to solicit input from rural and tribal law enforcement on the challenges they face and the resources they need. The U.S. Attorneys’ Offices lead the Justice Department’s crime-fighting efforts in the state, coordinating with local prosecutors and federal and local law enforcement agencies under the Project Safe Neighborhoods initiative.
The awards were made by the three grant-making components of the Department of Justice—OJP, the COPS Office and the Office on Violence Against Women.
OJP awards, organized under specific grant programs, are available online at https://ojp.gov/funding/Explore/OJPAwardData.htm. A full list of COPS awards is available online at https://cops.usdoj.gov/grants. For OVW awards, visit https://www.justice.gov/ovw/awards.
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office of Community Oriented Policing Services:
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
About the Office on Violence Against Women:
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
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Traverse City Practice Pays over $600,000 to Resolve False Claims Act Allegations Regarding Anesthesia BillingRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew Birge announced today that Traverse Anesthesia Associates, P.C. ("TAA"), and six of its anesthesiologists, agreed to pay the United States $607,966 to resolve allegations, under the federal False Claims Act, that they falsely submitted certain anesthesia claims to Medicare. TAA is a medical professional corporation that provides anesthesiology and pain management services at a number of hospitals and outpatient sites in the Traverse City region. The United States specifically contended that, for certain claims billed as medically directed anesthesia services, TAA and its anesthesiologists did not meet the regulatory requirements and conditions of payment for billing those services as medically directed.
This case resulted from a civil lawsuit filed by two whistleblowers who previously worked as employees at TAA. The lawsuit, known as a qui tam action, was filed under the False Claims Act, which allows private whistleblowers to bring lawsuits on behalf of the United States and receive a share of any recoveries. In this case, the Government partially intervened in the whistleblowers’ lawsuit. The whistleblowers will collectively receive over $120,000 of the settlement proceeds. The qui tam case is docketed as United States, et al. ex rel. Stone, et al., v. Traverse Anesthesia Associates, P.C., et al., No. 1:18-cv-1416 (W.D. Mich.).
"Those who provide medical services to Medicare beneficiaries and then bill for those services, must ensure compliance with Medicare’s billing requirements," said U.S. Attorney Birge. "My office investigates allegations of fraudulent billing and will enforce compliance with Medicare’s regulations. Billing Medicare for one level of service, while providing another, is exactly the type of activity that my office will aggressively pursue."
This case was investigated by the U.S. Department of Health & Human Services, Office of Inspector General, 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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Kent County Man Charged with Federal Wire Fraud and Tax CrimesRead the Press Release
The five-count indictment alleges that Brian John Scalabrino, formerly of East Grand Rapids, embezzled more than $250,000 from his former employer, and filed false tax returns
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that a federal grand jury charged Brian John Scalabrino, 46, with wire fraud for embezzling more than $250,000 from his former employer, Metal Standard Corporation of Holland, Michigan. He was also charged with four counts of filings false tax returns. He was arrested on these charges and appeared in court today.
The wire fraud charge carries a possible prison term of 20 years. The tax charges carry a possible prison term of three years each.
The indictment alleges that Scalabrino, who was the former Director of Finance for Metal Standard Corporation, embezzled money by altering his payroll records to show a negative federal income tax withholding amount for most pay periods. This fraudulently raised his income most pay periods so that his net income exceeded his reported gross income. He used this method to fraudulently increase his annual pay each year.
The indictment further alleges that Scalabrino created false IRS Form W-2 Wage and Tax Statements which showed fictitious amounts of federal tax withheld from his paycheck. He submitted these false Forms W-2 to the IRS when he filed his federal income tax returns. Scalabrino also wired additional money from Metal Standard Corporation to the United States Treasury to pay the federal income taxes that had not been withheld from his paychecks. Finally, the indictment alleges that Scalabrino filed four false tax returns for each tax year from 2013 through 2016.
The Criminal Investigation section of the Internal Revenue Service is handling this investigation. Assistant U.S. Attorney Clay Stiffler is handling the prosecution.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Muskegon Child Sex Trafficker Sentenced to 40 Years in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN - Richardo Leodoro Urbina, 58, of Muskegon, Michigan was sentenced to serve 480 months in the Federal Bureau of Prisons for sex trafficking three minors; attempting to sex traffic three more minors; conspiring to sex traffic minors; sex trafficking an adult by force, fraud, or coercion; distributing cocaine and cocaine base; and conspiring to distribute cocaine and cocaine base. U.S. District Judge Janet T. Neff also imposed a lifetime period of supervised release and $40,000 in fines.
In sentencing Urbina, Judge Neff stated that it is "difficult to find offenses more serious than these" and that this case "is among the most serious the Court has ever seen." Judge Neff also noted the "depravity of the methods Urbina used to recruit young girls and control them to make money for himself."
On May 14, 2019, Urbina was found guilty after a six-day jury trial. Over the course of trial, the jury heard from 10 girls about Urbina’s sexual exploitation of them while they were minors. The jury learned that in May of 2015, Urbina—then 54—recruited and pimped high-school aged girls. He located his victims by befriending high schoolers, who identified the most vulnerable girls they knew. Urbina targeted runaways who needed money and a place to stay. He gave them alcohol and cocaine to make it more likely they would agree to "dance" or give "massages" to men Urbina arranged for them to meet. The girls only learned the men expected them to have sex after they were alone with the johns. Urbina kept half the money the johns paid.
The jury also heard from one woman who Urbina sex trafficked after learning she needed a place to stay. He originally offered to help her by letting her live with him. The first night she stayed with Urbina, he forced her to have sex with a john for money. She lived with Urbina for about six months. He kept all of the money johns paid her and gave her narcotics instead. When she tried to leave, Urbina said she owed him $1,000 and had to pay it in order to be released. She had no money to pay and eventually escaped with the help of a john.
Urbina has an extensive criminal history, including three felony assault convictions, three larceny convictions, two felony drug convictions, a witness intimidation conviction, and a perjury conviction.
In announcing the sentence, U.S. Attorney Birge stated, "Urbina targeted the most vulnerable victims he could find—girls, many one-third his age, who thought they had nowhere else to turn. The 40-year sentence he received today should serve as a warning to others looking to engage in sex trafficking of minors in West Michigan."
"The perpetrator in this case used physical violence, fear, and coercion to further the sexual exploitation of his victims," stated Steven M. D’Antuono, Special Agent in Charge of the FBI Detroit Field Office. "Our investigation in this case through the West Michigan Based Child Exploitation and Human Trafficking Task Force, in conjunction with our local and state partners demonstrates that combating sex trafficking and violence in our communities is of the highest priority for the FBI."
The West Michigan Based Child Exploitation Task Force (WEBCHEX) investigated Urbina. The investigation included members of the FBI, Michigan State Police, Kent County Sheriff’s Office, and Ottawa County Sheriff’s Office. The case was tried by Assistant U.S. Attorneys Alexis M. Sanford and Davin M. Reust.
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.
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Teacher Gets 35 Years for Child ExploitationRead the Press Release
GRAND RAPIDS, MICHIGAN - Philip Gordon Paauwe, 33, of Grandville, Michigan, was sentenced to serve 420 months in the Federal Bureau of Prisons for coercing and enticing a minor to produce child pornography. U.S. District Judge Paul L. Maloney also imposed a period of supervised release of 10 years and ordered Paauwe to pay $34,000 in restitution to the victim.
In sentencing Paauwe, Judge Maloney stated that in his 25 years as a judge, he has not often, or perhaps ever, seen this degree of depravity. Judge Maloney said that Paauwe’s "grotesque behavior" and the "degree of manipulation is just unbelievable" and found that Paauwe was a very dangerous individual who used his "teaching position to perpetrate this monstrosity." Judge Maloney denied the defense request for leniency and expressed his goal to protect children from the risk posed by Paauwe.
Paauwe came to the attention of law enforcement during an undercover operation where he initiated plans to have sex with a 13-year-old girl. Paauwe was originally charged in state court for child pornography found on his phone. Further investigation into those images disclosed that he had been exploiting an out-of-state 15-year-old girl to make child pornography. Local authorities then referred the matter for federal prosecution. In its sentencing memorandum, the U.S. Attorney’s Office opposed the defense request for leniency and noted Paauwe’s extreme sexual manipulation of the victim, his fantasies of raping and killing children, and his sexual misconduct related to his teaching position.
In announcing the sentence, U.S. Attorney Birge stated, "As a teacher of special needs and emotionally impaired students, Paauwe knew how to relate to and ultimately exploit the minors he targeted. The school environment itself was fodder for his perverted fantasies. He is every parent’s nightmare. And that is why it is so important for my office to hold him and criminals like him accountable."
"The defendant exploited children for his own personal gratification. The identification, investigation and prosecution of those who victimize and exploit the most vulnerable members of our society remains a top priority for the FBI and its law enforcement partners," said FBI Acting Special Agent in Charge Rainer Drolshagen.
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: https: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. Attorneys Davin Reust and Daniel Mekaru, in cooperation with the Kent County Prosecutor’s Office, and investigated by WEBCHEX – a partnership of FBI, Michigan State Police, and other local agencies, including the Kent County Sheriff’s Department.
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Defense Contractor, Company President, Former Bookkeeper to Pay $1 Million to Settle False Claims Act AllegationsRead the Press Release
GS Engineering, Inc.’s President, Former Bookkeeper, And Four Related Companies Also Agree To Voluntary Exclusions From Federal Contracts And Awards
GRAND RAPIDS, MICHIGAN —U.S. Attorney Andrew Birge announced today that GS Engineering, Inc. ("GSE"), a defense contractor in Houghton, Michigan, along with GSE’s president and GSE’s former bookkeeper, will pay a total of $1,000,000.00 to resolve allegations that GSE submitted false claims for lease costs under its federal defense contracts. In connection with the settlement, GSE’s president, GSE’s former bookkeeper, and four companies that those individuals owned and controlled—Arcadian Holdings, LLC, Echo Leasing, LLC, GS Engineering Services, Inc. (d/b/a GS Infrastructure), and LJ Leasing, LLC—agreed to be voluntarily excluded from federal contracts and awards for a period of three years.
The settlement resolves allegations that between August 2009 and December 2015, GSE double-billed defense agencies by fully depreciating certain data acquisition equipment—and charging that depreciation to government contracts—before purporting to transfer and lease that same equipment back from Echo Leasing, a related company. The government also alleged that between January 2009 and November 2016, companies under GSE’s common control (Arcadian Holdings, Echo Leasing, GS Infrastructure, and LJ Leasing) leased real property and equipment to GSE at rates that exceeded allowable amounts under the Federal Acquisition Regulation.
In addition to its settlement with the U.S. Attorney’s Office, GSE entered into a three-year administrative agreement with the United States Army. The administrative agreement requires GSE to, among other things, maintain an ethics and compliance program and retain a Corporate Ethics Monitor to review and report on GSE’s compliance with government contracting requirements.
"Defense contractors cannot use their control over related companies to unnecessarily increase costs to the government," U.S. Attorney Birge said. "My office will protect the integrity of the procurement process and ensure that contractors comply with all applicable laws."
This case was a cooperative effort among the Defense Contract Audit Agency, the Defense Criminal Investigative Service, the United States Army Criminal Investigation Command, and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Adam B. Townshend represented the United States.
The claims resolved by the settlements are allegations only. There has been no determination of liability.
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Kalamazoo Woman Sentenced to 25 Years for Production of Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew Birge announced today that Amaris Mae Wyman, 31, of Kalamazoo, was sentenced to 25 years in the Bureau of Prisons for producing child pornography. U.S. District Judge Janet Neff also ordered Wyman to spend seven years on supervised release and imposed financial assessments.
Wyman pled guilty in May 2019 to the charge of producing a pornographic video of a child. An investigation found that she had taken several videos of her own child showering and using the bathroom. Wyman forwarded those videos to Matthew Toole; Wyman also sent sexually explicit messages to Toole and discussed plans to provide her child with alcohol and prescription medications to facilitate Toole’s rape of the minor.
Judge Neff commended law enforcement for investigating and stopping them before their plans were put into action. Toole was sentenced earlier this year to 50 to 70 years in state prison for an unrelated criminal sexual assault of an infant girl in Calhoun County.
At sentencing, Judge Neff noted that the victim had a right to grow up safe and protected by the most important person in any child’s life, their mother, but was instead exploited by Wyman. Birge noted that, “Federal law enforcement takes the protection of all victims seriously, but fights particularly for victims who are young, vulnerable, and exploited by those who ought to protect them.”
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, 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 website: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case was investigated by the Michigan State Police, the Kalamazoo County Sheriff’s Office, and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Alexis M. Sanford.
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Judge Imposes 15-Year Sentence on Lansing-Area Felon in Possession of A FirearmRead the Press Release
Aaron Donquwe Perkins Sentenced to 180 months for Unlawfully Possessing a 9mm Pistol
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Chief Judge Robert J. Jonker of the Western District of Michigan sentenced Lansing-area resident Aaron Donquwe Perkins to 15 years in prison for possessing a firearm as a convicted felon. Perkins admitted possessing a Smith & Wesson 9mm pistol, despite having previous convictions for assault with a dangerous weapon and two convictions for delivery/manufacture of controlled substances, all contrary to Michigan law.
Mr. Perkins’ extensive criminal history subjected him to the enhanced penalties of the Armed Career Criminal Act, 18 U.S.C. § 924(e), under which a person who violates the federal felon in possession statute after having been convicted previously of three or more violent felonies or serious drug offenses must serve a mandatory minimum sentence of fifteen years.
“My office prioritizes the prosecution of offenders with prior violent felonies and drug trafficking crimes in their history,” stated U.S. Attorney Birge. “We will use every tool in our toolbox—like the Armed Career Criminal Act—to keep firearms away from dangerous felons like Mr. Perkins.”
Special Agent in Charge James Deir of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) noted: “As a multi-time convicted felon, Aaron Donquwe Perkins was provided multiple opportunities to turn his life around. Instead, he choose to return to a life of crime. In doing so, he put innocent lives in danger. With the help of our law enforcement partners, ATF remains vigilante in the effort to protect our communities from violent criminals.”
This case was investigated by the ATF and the Lansing Police Department and was prosecuted by Assistant U.S. Attorney Austin J. Hakes as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, local, and tribal law enforcement work closely together to identify and prosecute individuals responsible for driving violent crime in our communities in order to make neighborhoods safer for everyone. Individuals with information or concerns about violent crime or firearms offenses should contact local law enforcement. For more information about Project Safe Neighborhoods, visit: https://www.justice.gov/psn.
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Former Albion Pharmacists Sentenced to Prison for Federal Drug Trafficking and Healthcare Fraud ChargesRead the Press Release
John Shedd and Terry Tooley Filled Controlled Substance Prescriptions They Knew Were Written For No Legitimate Medical Purpose and Fraudulently Billed Health Insurers
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that John Shedd, 71, of Albion, Michigan, and Terry Tooley, 64, of Spring Arbor, Michigan, were each sentenced to 15 months in prison on federal drug trafficking and healthcare fraud charges. Chief Judge Robert J. Jonker, who imposed the sentences, also ordered them to pay more than $465,000 in restitution to Medicare, Medicaid, and the other health insurers they defrauded. He also imposed a two-year term of supervised release and ordered them never to obtain a pharmacy license or practice again as a pharmacist. Separately, Shedd and Tooley forfeited $1.3 million in cash to the United States.
Shedd and Tooley, who previously owned Parks Drug Store in Albion, admitted they filled prescriptions written by former Albion doctor Horace J. Davis and dispensed 50,000 dosage units of methadone, even though they knew those prescriptions had been written for no legitimate medical purpose. Davis was convicted in 2017 of federal drug trafficking crimes and healthcare fraud. Shedd and Tooley also admitted they billed Medicare, Medicaid, and Blue Cross Blue Shield of Michigan more than $465,000 for prescriptions that were never written, and forged documents in connection with their false healthcare billings.
"Shedd and Tooley contributed to the opioid epidemic, but thanks to the good work of our law enforcement partners, they’ll spend time in prison and never work as pharmacists again," said U.S. Attorney Birge. "They put lives in danger by filling prescriptions they knew they shouldn’t have. Now they’ll pay the price," he said.
"It is a DEA priority to aggressively pursue healthcare professionals who violate our trust and illegally distribute controlled prescription drugs," said Special Agent in Charge Keith Martin, of the DEA Detroit Field Division. "Outcomes like these demonstrate the commitment federal, state and local law enforcement officials have to protect our communities during a very serious public health crisis."
The investigation was conducted by the Albion Department of Public Safety, Calhoun County Sheriff, DEA, and IRS Criminal Investigation. Assistant United States Attorney Clay Stiffler prosecuted the case.
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Threat Caller Goes to Federal PrisonRead the Press Release
Samuel Santellan sentenced to one year for threatening a mass shooting
GRAND RAPIDS, MICHIGAN —Samuel Adam Santellan, 55, of Florida, was sentenced to a year in prison for communicating a threat in interstate commerce, U.S. Attorney Andrew Birge announced today. In imposing the sentence, Chief U.S. District Judge Robert J. Jonker stated that one of his considerations was to deter such threats, which endanger public safety whether or not the caller intends to carry them out.
In December, 2018, Santellan called the Kalamazoo office of the Social Security Administration, from Florida, about a rejected disability claim. Santellan became angry when he did not receive the relief he was hoping for, and told the clerk he was going to "get a gun, come to the [Social Security] office and shoot everyone." The Kalamazoo office was placed on alert, and a uniformed officer of the Kalamazoo Department of Public Safety was temporarily dispatched to provide armed security.
At sentencing, Santellan claimed he did not possess a gun and had no intention of carrying out a mass shooting. Special Agents of the Social Security Administration Office of the Inspector General and officers of the Daytona Beach Shores (Florida) Police Department expended significant resources tracking and locating Santellan, both before he was indicted and after he failed to appear for court while out on bond. "Law enforcement has to take every threat of mass firearms violence seriously," said U.S. Attorney Birge. "Every officer and agent diverted to deal with an aborted threat or a hoax is unavailable to stop another shooter."
This case was investigated by the Social Security Administration Office of the Inspector General and the Daytona Beach Shores Police Department and prosecuted by Assistant U.S. Attorney Nils Kessler.
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Jury Convicts Self-Proclaimed "Professor of Pot"Read the Press Release
GRAND RAPIDS, MICHIGAN — After a four-day trial, a jury convicted Daniel Dario Trevino, age 47, of Lansing, Michigan, on ten federal marijuana trafficking-related charges. The federal charges and convictions resulted from Trevino’s operation of marijuana dispensaries across the state of Michigan.
Trevino was the owner of Hydro World, a marijuana dispensary that operated with storefronts in Lansing, Grand Rapids, Jackson, Mount Pleasant, and Flint between 2010 and 2017. Trevino’s Hydro World operated far outside the boundaries of not only federal law but also the Michigan Medical Marijuana Act. Trevino had prior drug felony convictions involving cocaine and marijuana. As a previously convicted drug felon, Trevino was only qualified to be a patient under state law, which allowed him under state law (but not federal law) to cultivate up to 12 marijuana plants and possess up to 2.5 ounces of marijuana for his own use. Instead, Trevino cultivated thousands of marijuana plants and sold hundreds of kilograms of marijuana, generating sales of at least $2.9 million.
Trevino’s Hydro World also provided a delivery service, where customers could call Hydro World in either Lansing or Jackson and have marijuana delivered to them at a place of their choosing. Trevino also leased space at his storefronts for other growers to sell marijuana, effectively creating a marijuana farmers’ market. Trevino’s storefronts and grow locations were searched by law enforcement at least sixteen times between 2010 and 2016. Despite having ample notice that what he was doing was illegal, Trevino always resumed his operations shortly after each search.
“Marijuana remains illegal under federal law,” said U.S. Attorney Andrew Birge. “Although Trevino has long claimed that what he was doing was legal under the Michigan Medical Marijuana Act, he was not even close to being legal and made a mockery of the Michigan Medical Marijuana Act in the process. Trevino had ample opportunity to realize the illegal nature of his business under both federal and state law, given the number of times his operations were searched. He would not stop. Perhaps he will get a better understanding of the law behind bars,” stated Birge.
Marijuana is a Schedule I controlled substance under the federal Controlled Substances Act. As such, it is illegal for any purpose under federal law. Due to the quantity of marijuana Trevino dealt, he faces a mandatory minimum of five years and up to a statutory maximum of 40 years in prison. U.S. District Court Judge Paul L. Maloney will sentence him later this year. Trevino’s closest associates at Hydro World, Dolores Lopez, Daniel Corbin, and Daniel Bachelder, pled guilty before trial and have already been sentenced.
Assistant U.S. Attorneys Joel S. Fauson and Daniel T. McGraw tried the case. The case was investigated by the Drug Enforcement Administration, the Tri-County Metro Narcotics Team (TCM), Jackson Narcotics Enforcement Team (JNET), Kent Area Narcotics Enforcement Team (KANET), Bay Area Narcotics Enforcement Team (BAYANET), Lansing Police Department and Flint Police Department.
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Immigrant Charged with Defrauding Hopeful ImmigrantsRead the Press Release
Catholic Diocese employee accused of embezzling fees for immigration assistance
GRAND RAPIDS, MICHIGAN — Monica Karina Mazei, aka Karina Puig, was arrested today on an indictment charging her with wire fraud. Mazei had been employed by the Catholic Diocese of Kalamazoo’s Immigration Assistance Program, where she helped clients and their relatives apply for visas, work permits, permanent resident status, citizenship, and other relief. As alleged by the grand jury in the indictment, on numerous occasions between 2015 and 2019, she collected fees from certain clients and promised to process their petitions. Instead, she allegedly embezzled their money, and did not send in their paperwork. Mazei immigrated to the United States from Ecuador herself, and became a naturalized citizen in 1999.
The indictment further alleges that Mazei concealed her scheme from the Diocese by not opening files for the clients she was defrauding. In some cases she allegedly deceived clients by requesting blank checks or money orders. She wrote “U.S. Department of Homeland Security” in the payee line of the copies she provided them as proof of payment. She then wrote her own name as payee on the actual instruments, and deposited them in her personal accounts.
“Mazei was given an opportunity to live the American dream herself,” said U.S. Attorney Andrew Birge, “but she cashed in the dreams of others to line her own pockets.”
This case is being investigated by Homeland Security Investigations (HSI) and the Kalamazoo Department of Public Safety. If anyone suspects their own or their family member’s application for immigration relief was denied or affected because of Monica Mazei’s alleged actions, they are asked to call the Homeland Security Investigations (HSI) Tip Line at 1-866-DHS- 2-ICE (1-866-347-2423) and TTY for hearing impaired only at (802) 872-6196. The privacy of crime victims is of the utmost importance. The U.S. Attorney’s Office will do everything in its power to protect the privacy of anyone who responds to this inquiry.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Two Allegan County Men Indicted for Stealing Nearly $300,000 in Elder Fraud SchemeRead the Press Release
Picture of James Black and Tyler HarrisThe federal grand jury alleges that James Black and Tyler Harris deceived an elderly victim into paying nearly $300,000 in fraudulent home repairs.
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that a federal grand jury indicted James Robert Black (a/k/a “Jim Gribble” and “Victor Valentine”) and Tyler Maurice Harris for their scheme to defraud an elderly Holland, Michigan homeowner out of nearly $300,000. Harris was taken into custody and appeared today before federal Magistrate Judge Ellen Carmody. Black’s whereabouts remain unknown.
Black, age 55, and Harris, 24, are charged together in a conspiracy to commit wire fraud. Harris also faces a separate charge of welfare fraud. The conspiracy charge carries a possible prison term of 20 years. The welfare fraud charge carries a maximum penalty of up to ten years.
The indictment alleges that Black and Harris defrauded an elderly Holland homeowner of $298,000 through a fraudulent home repair scheme. The homeowner hired Black, who went by the name “Jim Gribble” to do a roof repair. After that, the defendants persuaded the homeowner to pay almost $300,000 for a series of false problems associated with the project, including dangerous working conditions, employee injuries, lawsuits and tax issues.
The investigation into the activities of Black and Harris remains ongoing. Anyone who believes they have dealt with either man and are the victim of fraud should call Homeland Security Investigations at 616-235-3936 or the U.S. Attorney’s Office at 616-808-2034. Anyone knowing the whereabouts of Black should call Homeland Security Investigations at 616-235-3936.
Homeland Security Investigations (HSI) is handling this investigation; Assistant U.S. Attorney Timothy VerHey is handling the prosecution.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Convicted Felon Sent Back to Prison for Possessing Stolen Mail and A Stolen FirearmRead the Press Release
Immanuel Bradley received consecutive sentences because of his long criminal record
GRAND RAPIDS, MICHIGAN — Immanuel Bradley, 33, of Kalamazoo, Michigan was sentenced to a total of 78 months’ imprisonment for possession of stolen mail and being a felon in possession of a firearm, U.S. Attorney Andrew Birge announced today. The Hon. Paul Maloney, U.S. District Court Judge, sentenced Bradley above the guideline range due to his long history of recidivism, and ran the sentences for his two offenses consecutively in the interest of public safety.
In October, 2018, Kalamazoo police were dispatched to the location of a reported stolen car. They found Bradley with a backpack full of stolen mail, including checkbooks and other financial instruments. Police obtained a search warrant for Bradley’s residence, and found a garbage bag full of similar items, including stolen checks, driver’s licenses, passports, social security cards and credit cards. They also recovered a loaded .223 caliber magazine for an AR-15 style semiautomatic assault rifle.
In February 2019, Kalamazoo police responded to a shoplifting complaint at a D&W grocery store in the city. When they apprehended Bradley, he hid a loaded Smith & Wesson, .40 caliber semiautomatic pistol in a display basket by the checkout aisles. He fought with officers when they attempted to handcuff him, and escaped from the store with police in hot pursuit. Bradley forced his way into the occupied home of a nearby woman, who fled and alerted police. After a standoff with the Kalamazoo Department of Public Safety’s SWAT team, he was arrested without further incident. Police retrieved the pistol from the store and determined it had been stolen from a Portage residence in January 2019.
At sentencing, Bradley denied the pistol was stolen, claiming he bought it from the registered owner. After the owner and her fiancé refuted his claim in sworn testimony, Judge Maloney denied Bradley credit for acceptance of responsibility. The Judge noted Bradley’s long history of serious criminal convictions, including other breaking and entering and home invasion offenses. He also noted Bradley had repeatedly violated parole in the past, and committed his most recent crimes only a few months after getting off state supervision for his last conviction.
This case was investigated by the U.S. Postal Inspection Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Kalamazoo Department of Public Safety.
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Engineering Graduate Pleads Guilty to Lying to Federal AgentsRead the Press Release
Aaron Fein concealed use of an AR-15 semiautomatic assault rifle
GRAND RAPIDS, MICHIGAN - Aaron William Fein, 24 years old, of Grand Rapids, admitted in open federal court that he deliberately lied to the FBI Joint Terrorism Task Force in April, 2019. Lying to federal agents is a felony carrying a penalty of up to five years’ imprisonment and a $250,000 fine.
"This outcome holds Fein accountable for his deceit while assuring that he will have an opportunity for mental health treatment and not again be able to lawfully possess a firearm," advised U.S. Attorney Andrew Birge. "And it is thanks to the vigilance and tireless efforts of the FBI Joint Terrorism Task Force and its multiple federal and local law enforcement partners that Fein was arrested and could be charged before posing further danger."
Task Force Agents first became aware of Fein in August, 2018, when he attempted to cross into Canada without proper documentation. When he returned, U.S. Customs and Border Protection agents found documents and materials in his car relating to bomb making and jihadism. Fein admitted having bomb-making materials at his home, and told agents he was interested in mass shootings. During the following months, Task Force Agents kept close tabs on Fein, including encouraging him to seek counseling.
On several occasions this year, Fein obtained and attempted to obtain firearms and ammunition, but agents interceded. Agents eventually filed a petition for mental health treatment, and the Kent County Probate Court ordered Fein not to possess any firearms. In April, 2019, agents learned Fein had rented an AR-15 style semiautomatic assault rifle and trained with it at a firearms range in eastern Michigan. When they apprehended him soon after, he falsely stated he had not touched any guns. Video recordings from the range clearly showed him shooting the rifle. After additional investigation, agents learned Fein had bought metalworking tools. They arrested him at his residence, and found unassembled parts for multiple AR-15 rifles, as well as radio transmitters and electrical components for an improvised explosive device. Fein has a college degree in engineering.
Fein will be held in custody until his sentencing in Kalamazoo, before the Hon. Paul L. Maloney, United States District Judge. FBI was assisted in this investigation by Homeland Security Investigations.
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Holland-Area Pair Sentenced in Connection with Theft of Firearms from Graafschap Hardware StoreRead the Press Release
Matteo Marroquin and Lacy Zimmerman Each Sentenced to Ten Years for Stealing 22 Firearms from Federal Firearms Licensee
GRAND RAPIDS, MICHIGAN —On the evening of December 7 or early morning hours of December 8, 2019, two individuals, Matteo Adan Marroquin and Lacy Lynn Zimmerman, stole 22 firearms from Graafschap Hardware Store in Allegan County. Both pled guilty in federal court to the theft of firearms from a federal firearms licensee. Law enforcement officers believe that all of the firearms stolen from Graafschap Hardware have been recovered.
On July 18, 2019, Judge Paul Maloney sentenced Marroquin to ten years in prison. Zimmerman, was also sentenced to ten years in prison on May 24, 2019. They were each also ordered to pay $9,013 in restitution. A third individual, Andrew Leenheer, who purchased two of those firearms after the burglary, was convicted of possession of a stolen firearm and sentenced to 44 months in prison on July 19, 2019.
"The theft of firearms from a federal firearms licensee is a top priority for ATF," said ATF Special Agent in Charge James Deir. "Too often these stolen guns are used to commit violent crimes. ATF remains committed to working with our law enforcement partners to ensure the safety of our communities."
"The guns stolen from Graafschap Hardware were recovered through extraordinary police-work by WEMET, the Allegan County Sheriff’s Office, and ATF," said Andrew Birge, U.S. Attorney. "Investigating and prosecuting thefts from gun stores and recovering the stolen weapons are priorities because everyone in law enforcement recognizes the danger. Stolen firearms are most valuable to those who are prohibited from lawfully possessing them or who have bad intentions in mind or both."
The case was investigated by the Allegan County Sheriff’s Office, Michigan State Police, WEMET, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Sally J. Berens prosecuted the case.
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Justice Department Settles Discrimination Lawsuit Against an Educational Service Agency in MichiganRead the Press Release
The Justice Department announced today that it has reached a settlement with the Allegan Area Educational Service Agency (AAESA), a government agency providing support, cooperative educational programs, and services to local school districts in Allegan County, Michigan, resolving allegations that AAESA subjected two female teachers to sexual harassment and a hostile work environment in violation of Title VII of the Civil Rights Act of 1964, as amended.
The complaint, filed last year in the U.S. District Court for the Western District of Michigan, alleged that AAESA discriminated against two female teachers when they were regularly subjected to sexual harassment in the workplace by their supervisor, a former principal at the school where they all worked. As alleged in the complaint, the sexual harassment included verbal abuse as well as unwanted physical touching that escalated to physical assaults. The principal was later convicted of criminal assault of the teachers. The complaint alleged that AAESA did not take reasonable steps to prevent the principal’s unlawful acts.
Under the terms of a consent decree, which still must be approved by the court, AAESA has agreed to pay $450,000 in total monetary relief to the two teachers. Pursuant to the consent decree, AAESA must review and revise its existing anti-discrimination policies and procedures and implement effective policies to protect its employees from discrimination on the basis of sex, including sexual harassment. The consent decree requires AAESA to train its employees to ensure that employees understand how and when to report potentially discriminatory behavior and to ensure that any future complaints of discrimination are handled properly.
“No one should be forced to endure sexual harassment to keep their job,” said Assistant Attorney General Eric Dreiband. “The Justice Department, through its Sexual Harassment in the Workplace Initiative, will continue to vigorously enforce federal anti-discrimination laws to combat sexual harassment in the workplace and help ensure that teachers and other dedicated public servants are protected from unlawful harassment in the future.”
“My office is committed to vigorous law enforcement, which includes working with the Civil Rights Division to combat sexual discrimination and harassment in public sector workplaces,” said U.S. Attorney Andrew Birge. “This resolution sends a strong message that sexual harassment will not be tolerated in the Western District of Michigan and that employers must make serious and meaningful efforts to prevent and address it.”
Both teachers filed charges of discrimination with the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC investigated the charges and found that there was a reasonable basis to believe that violations of Title VII had occurred. After unsuccessful conciliation efforts by the EEOC, the charges were referred by the EEOC to the Department of Justice. The two teachers intervened in the United States’ suit.
This settlement is part of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative announced in February 2018. The Initiative is aimed at eradicating sexual harassment in state and local government workplaces. It focuses on litigation, outreach, and development of effective remedial measures to address and prevent future sex discrimination and harassment.
Attorneys assigned to the Employment Litigation Section of the Civil Rights Division represented the United States in this matter.
More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
Justice Department Settles Discrimination Lawsuit Against an Educational Service Agency in MichiganRead the Press Release
This Settlement is part of the Justice Department’s Sexual Harassment in the Workplace Initiative
WASHINGTON – The Justice Department announced today that it has reached a settlement with the Allegan Area Educational Service Agency (AAESA), a government agency providing support, cooperative educational programs, and services to local school districts in Allegan County, Michigan, resolving allegations that AAESA subjected two female teachers to sexual harassment and a hostile work environment in violation of Title VII of the Civil Rights Act of 1964, as amended.
The complaint, filed last year in the U.S. District Court for the Western District of Michigan, alleged that AAESA discriminated against two female teachers when they were regularly subjected to sexual harassment in the workplace by their supervisor, a former principal at the school where they all worked. As alleged in the complaint, the sexual harassment included verbal abuse as well as unwanted physical touching that escalated to physical assaults. The principal was later convicted of criminal assault of the teachers. The complaint alleged that AAESA did not take reasonable steps to prevent the principal’s unlawful acts.
Under the terms of a consent decree, which still must be approved by the court, AAESA has agreed to pay $450,000 in total monetary relief to the two teachers. Pursuant to the consent decree, AAESA must review and revise its existing anti-discrimination policies and procedures and implement effective policies to protect its employees from discrimination on the basis of sex, including sexual harassment. The consent decree requires AAESA to train its employees to ensure that employees understand how and when to report potentially discriminatory behavior and to ensure that any future complaints of discrimination are handled properly.
"No one should be forced to endure sexual harassment to keep their job," said Assistant Attorney General Eric Dreiband. "The Justice Department, through its Sexual Harassment in the Workplace Initiative, will continue to vigorously enforce federal anti-discrimination laws to combat sexual harassment in the workplace and help ensure that teachers and other dedicated public servants are protected from unlawful harassment in the future."
"My office is committed to vigorous law enforcement, which includes working with the Civil Rights Division to combat sexual discrimination and harassment in public sector workplaces," said U.S. Attorney Andrew Birge. "This resolution sends a strong message that sexual harassment will not be tolerated in the Western District of Michigan and that employers must make serious and meaningful efforts to prevent and address it."
Both teachers filed charges of discrimination with the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC investigated the charges and found that there was a reasonable basis to believe that violations of Title VII had occurred. After unsuccessful conciliation efforts by the EEOC, the charges were referred by the EEOC to the Department of Justice. The two teachers intervened in the United States’ suit.
This settlement is part of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative announced in February 2018. The Initiative is aimed at eradicating sexual harassment in state and local government workplaces. It focuses on litigation, outreach, and development of effective remedial measures to address and prevent future sex discrimination and harassment.
Attorneys assigned to the Employment Litigation Section of the Civil Rights Division represented the United States in this matter.
More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
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Kentwood Man Sentenced for Interstate Threat to Injure U.S. SenatorRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Rick Lynn Simmons, 52, of Kentwood, Michigan was sentenced by U.S. District Judge Janet T. Neff for making an interstate telephone call to the Camden, New Jersey office of U.S. Senator Cory Booker and leaving a voicemail message with a threat to injure Senator Booker. Simmons will serve 15 months of confinement, 2 years of supervised release, and pay a $2,000 fine. Judge Neff commented that this threat does not necessarily reflect an isolated incident based on Simmons’ internet searches of contact information of other public officials following this incident.
Simmons admitted at the plea hearing that he placed a call in the evening of October 26, 2018 from his Kent County, Michigan home to Senator Booker’s office and left a voicemail message from that call. Simmons further admitted at the plea hearing to leaving a vulgarity-filled message in that call during which he threatened to put a 9 millimeter gun into the face of Senator Booker and put "guns a blazin."
"This conviction and sentence should serve as a warning to others who, like Simmons, stoop to such threats of violence," U.S. Attorney Birge said.
"The FBI has zero tolerance for anyone who threatens to do harm to others," said FBI Detroit Field Office Special Agent in Charge Timothy R. Slater. "We hope this sentence sends a strong message that the FBI, working in conjunction with our federal, state, and local partners, will investigate these threats thoroughly so we can keep our citizens safe."
The case was jointly investigated by the U.S. Capitol Police, Kentwood Police Department, and the FBI - Grand Rapids Violent Crime Task Force – which includes the Grand Rapids Police Department, the Michigan Department of Corrections, and the FBI. Assistant U.S. Attorney Clay M. West prosecuted the case.
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Holland Attorney Sentenced for Defrauding Clients and Filing False Federal Income Tax ReturnsRead the Press Release
Suspended Attorney Jeffrey Palmer Embezzled $339,520 From Clients and Failed to Report That Income to the Internal Revenue Service
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that Jeffrey J. Palmer, a resident of Holland, Michigan, has been sentenced to three years in federal prison for making a false statement on a federal income tax return and executing a scheme to defraud two of his clients. Palmer was ordered to pay restitution to his victims and $55,511 to the United States for tax due and owing (before interest and penalties). Following his release from prison, Palmer will serve an additional three years under supervision by the U.S. Probation Office. The sentence was imposed by Chief U.S. District Judge Robert J. Jonker.
Earlier this year, Palmer pled guilty to embezzling $339,520 of client trust funds between 2012 and 2016 while licensed and practicing as an attorney in Michigan. He did not disclose to his clients that he was withdrawing their funds for his own personal use and benefit. The government noted at sentencing that one of Palmer’s victims was vulnerable because he was living in a nursing home and lacked the ability to care for himself or manage his finances. Having no surviving spouse or children, the U.S. Attorney’s Office, Adult Protective Services, and a Michigan Probate Court ensured that the victim was provided with a guardian and conservator after the fraud was discovered. In addition to the scheme to defraud his clients, Palmer admitted that he failed to report as income the funds he embezzled on his federal income tax returns and in so doing, filed false returns that underreported his income. Upon pleading guilty, Palmer received an automatic interim suspension from the practice of law and now faces disbarment.
This matter was investigated by the Criminal Investigation section of the IRS (IRS CI) and was prosecuted by Assistant U.S. Attorney Christopher M. O’Connor.
U.S. Attorney Birge stated, "IRS special agents worked tirelessly to determine the extent to which Jeffrey Palmer committed fraud against his clients and cheated the federal government out of vital tax revenue. Attorneys in this state solemnly swear an oath to accept no compensation in connection with their client’s business except with their client’s knowledge and approval, and to always act consistent with truth and honor. The hard work of IRS CI determined that Palmer violated this oath for five years before being brought to justice."
Manny Muriel, Special Agent in Charge of IRS Criminal Investigation remarked, "Mr. Palmer was a licensed attorney who greedily embezzled clients’ funds for his own benefit from 2012 through 2016. He misused his authority over funds entrusted to him as a fiduciary and failed to report those funds on his federal income tax return. IRS-CI will vigorously investigate individuals who deceitfully steal money and fail to report income on their income tax returns."
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Muskegon Man Sentenced to over 8 Years in Prison for Straw Purchase of FirearmsRead the Press Release
GRAND RAPIDS, MICHIGAN — Bobby Butch Pollard, age 39, of Muskegon, was sentenced in U.S. District Court to 103 months in prison for manipulating his girlfriend into purchasing four firearms and hundreds of rounds of ammunition for him in late 2017. He could not lawfully acquire or possess firearms or ammunition because he was a convicted felon. The Hon. Janet T. Neff also imposed a term of three years of court supervision to follow Pollard’s release from prison. The sentencing follows a trial that took place in February in which a jury found Pollard guilty of being a felon in possession of firearms and ammunition—the guns and bullets his girlfriend had purchased for him at his direction. His lengthy prior record includes convictions for drug offenses, assault and battery, assault with a dangerous weapon, domestic assault, failures to pay child support and various criminal traffic offenses.
"ATF, in conjunction with our state and local partners, will continue to protect the public by identifying and arresting violent offenders in the community who illegally possess firearms, as well as anyone who knowingly provides firearms to them," said James Deir, Special Agent in Charge of ATF’s Detroit Field Division.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, in conjunction with the Muskegon Police Department. This case was prosecuted by Assistant U.S. Attorneys Jonathan Roth and Clay Stiffler as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, local, and tribal law enforcement work closely together to identify and prosecute individuals responsible for driving violent crime in our communities in order to make neighborhoods safer for everyone. Individuals with information or concerns about violent crime or firearms offenses should contact local law enforcement. For more information about Project Safe Neighborhoods, visit: https://www.justice.gov/psn.
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Eaton Rapids Brothers Found Guilty of Receipt and Possession of Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN - United States Attorney Andrew Birge announced today that a federal jury in Kalamazoo found Adam Christopher Collard, 35, and Joseph Alan Collard, 31, both of Eaton Rapids, guilty of multiple child pornography charges. The jury convicted Adam Collard of receiving and possessing child pornography, and Adam Collard of attempting to receive and actually receiving and possessing child pornography. Adam Collard faces a mandatory minimum sentence of 15 years and a maximum sentence of 40 years in federal prison. He has a prior state conviction for possession of child pornography. Joseph Collard, on the other hand, faces a mandatory minimum sentence of five years and a maximum sentence of 20 years in federal prison.
In September of 2015, the FBI executed federal search warrants at the Collard residence in Eaton Rapids, Michigan, where the brothers resided with their parents, and at a campsite in Grand Haven, Michigan, where Adam Collard was camping at the time. A forensic examination of over 30 electronic media devices seized by the FBI revealed that Adam Collard and Joseph Collard used the internet to download images and videos of child pornography onto computers that they solely owned. The FBI also located a document titled, "The Pedophile Sex Manual" on Adam Collard’s laptop.
After two days of hearing testimony and seeing evidence admitted at trial, the jury convicted the brothers on all charges against them. The defendants are in federal custody pending their sentencing date on September 23, 2019 in Kalamazoo, Michigan.
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, 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 website: wwww.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The FBI conducted this investigation. The case was tried by Assistant United States Attorneys Alexis M. Sanford and Daniel T. McGraw.
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Michigan Practitioner Diversion Awareness TrainingRead the Press Release
News Advisory
Working to reduce prescription drug abuse
GRAND RAPIDS, Mich. – Drug overdoses are the leading cause of injury-related deaths in the United States and every day we see the impact that prescription drug abuse has on our neighborhoods. This crisis is destroying communities throughout our nation. In an effort to address this epidemic, the Drug Enforcement Administration (DEA) and co-sponsor, the Federation of State Medical Boards, present the Michigan Practitioner Diversion Awareness Training.
This invitation-only training is for DEA-registered physicians, dentists, physician assistants and nurse practitioners. The objective is to provide information and tools to address prescription drug abuse and addiction. The training will include topics such as the DEA Diversion Control mission, Michigan Automated Prescription System and state legislative updates, health care fraud and diversion, electronic prescribing, and the physiology of addiction. A positive response is expected from Michigan’s nearly 53,000 practitioners who are currently registered with the DEA.
The Michigan Practitioner Diversion Awareness Training will be held Friday, June 14 from 8:30 a.m. - 5:00 p.m. at Grand Valley State University (Loosemore Auditorium) located at 401 Fulton Street W., Grand Rapids, Michigan 49504. Check-in begins at 7:30 a.m. and a live stream of this event is available to DEA-registered practitioners. Registration for this training is currently closed.
There will be media availability between 7:00 a.m. and 8:15 a.m. Kathy Federico, Diversion Program Manager of the Drug Enforcement Administration, Detroit Field Division, will be in attendance and available for comments to the media after opening event remarks.
Drug Trafficker from Benton Harbor and Atlanta Convicted at Trial by JuryRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today a federal jury convicted Richard Farmer, Sr., 44, of conspiring to distribute methamphetamine and ecstasy after a four-day trial before the Honorable Robert J. Jonker, Chief United States District Judge. Farmer faces up to thirty years in prison when he is sentenced on October 9.
Farmer was arrested in August 2018 during the multijurisdictional takedown of a methamphetamine ring. Twenty-four defendants have been indicted in related cases as part of the investigation, and sixteen pled guilty before Farmer’s trial.
The proofs at trial established that Farmer was an adviser to the leader of the organization, Raymond Stovall. Over the two months Stovall’s phone was wiretapped in 2018, Farmer told Stovall how to transport money and drugs, sought to invest money in drug packages, helped Stovall look for a missing drug package, travelled to Michigan from his home in greater Atlanta to meet with Stovall, informed Stovall that he was sending ecstasy to Michigan, and plotted to help Stovall obtain additional methamphetamine from a source in Benton Harbor, Farmer’s hometown. Farmer also harbored Antwan Mims – an unindicted co-conspirator convicted of two counts of first-degree murder by a Berrien County jury earlier this year – while he was a fugitive wanted for those homicides. Farmer and Mims were found by an FBI SWAT team in a drug house outside of Atlanta along with a pound of methamphetamine, heroin, other drugs, packaging materials, and a loaded, stolen firearm.
"The jury saw Richard Farmer for the drug dealer the evidence showed he was," said U.S. Attorney Birge. "The lesson here is that if you choose to get into the business of illegally trafficking these dangerous drugs in West Michigan, law enforcement agencies from far and wide will work together to bring you to justice."
"This case exemplifies the cooperation among federal, state, and local law enforcement agencies to dismantle dangerous criminal organizations that threaten the safety of our communities," said Timothy R. Slater, Special Agent in Charge of the FBI Detroit Division. "The FBI will continue to target the leadership of these organizations – and those who facilitate their crimes – in order to stop the increase in violence and crime associated with these multi-state drug trafficking organizations."
"Farmer was part of a drug distribution network spanning from Georgia to Western Michigan," said Timothy J. Plancon, Special Agent in Charge of the Detroit Field Division of the DEA.
"This successful conviction is a testimony to the dedication and hard work of our federal and local law enforcement partners and the United States Attorney’s Office. We will continue our relentless pursuit to identify and investigate those trafficking illicit narcotics in our communities."
With respect to the defendants still pending trial, the charges in the indictment are merely accusations and are not evidence of guilt. The defendants are presumed innocent unless and until proven guilty in a court of law. The government has the burden of proving guilt beyond a reasonable doubt.
This case is being 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. Farmer was tried by Assistant U.S. Attorneys Justin M. Presant and Vito S. Solitro.
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Corporate CEO Sentenced in Fraud CaseRead the Press Release
Darci Shillington Defrauded Hilco Technologies of $1.3 Million
GRAND RAPIDS, MICHIGAN — Darci Shillington appeared in U.S. District Court today for sentencing before Judge Janet T. Neff. The judge imposed a sentence of a total of 36 months in prison, to be followed by two years of supervised release and restitution of $399,386. The court allowed Shillington to remain on bond pending designation of her prison facility.
Shillington was the CEO of Hilco Technologies, a Grand Rapids plastics manufacturing company. As CEO, she was paid an annual salary of $175,000. Between June and September, 2017, she defrauded the company of $1,397,000 by submitting phony invoices for payment and pocketing the money. She used the stolen money to purchase and furnish a lavish home in Ada, Michigan. When purchasing the home, Shillington forged a letter, supposedly from Hilco’s Board of Directors, explaining how she legitimately possessed large cash reserves to make a down payment on the residence. The fraud left Hilco short of cash to pay its real suppliers, who eventually contacted other Hilco representatives to complain. They discovered the fraud in September 2017, and called the FBI.
U.S. Attorney Andrew Birge said "This crime involved a business, but it was really about hurting people. Darci Shillington earned a salary that most people would be thrilled to have; but she just had to have more. She took advantage of suppliers, jeopardized the company’s stability, and in turn put the jobs of the company employees at risk."
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Timothy VerHey.
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Portage Woman Sentenced to 15 YEARS in Prison for Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN –Rachel Marie Burrell, 30, of Portage, Michigan, was sentenced for sexual exploitation of a child, U.S. Attorney Andrew Birge announced today. Burrell was sentenced to 180 months’ imprisonment, followed by five years of supervised release and was ordered to pay fines and other monetary penalties.
Burrell took sexually explicit pictures of an infant in her care and forwarded the images to a man with whom she was in a relationship. She also made the infant available to that man knowing he would sexually assault the infant. According to a victim impact statement filed by the victim’s foster parents, the victim suffers from night terrors and a sensory processing disorder as a result of the abuse. Chief Judge Jonker noted at sentencing "the ultimate injury to the child … was severe."
"Children, and infants in particular, are some of our most vulnerable victims and my office is dedicated to seeking justice when they are harmed," said U.S. Attorney Birge. "As a law enforcement agency and as a community, we have no greater duty than to protect the most vulnerable among us," said Timothy R. Slater, Special Agent in Charge of the FBI’s Detroit Division. "The FBI and our law enforcement partners will relentlessly pursue those who would victimize innocent children and ensure they are brought to justice."
This case is part of the Department of Justice’s Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, and local law enforcement work closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
The case was investigated by the FBI, the Michigan State Police, and the Kalamazoo County Sheriff’s Department and prosecuted by Assistant U.S. Attorney Alexis M. Sanford.
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State Representative Larry Inman IndictedRead the Press Release
The federal grand jury alleges Inman attempted to sell his vote on the repeal of the state’s prevailing wage law last June and later lied to the FBI
GRAND RAPIDS - MICHIGAN: United States Attorney Andrew Birge announced today that a federal grand jury charged Larry Charles Inman, of Grand Traverse County, with three crimes: attempted extortion, bribery and lying to an agent of the FBI. Inman is the elected legislator in the Michigan House of Representatives representing the 104th District in the State of Michigan.
Specifically, Inman is accused of soliciting money via text messages he sent between June 3-5, 2018, to a labor union, the Michigan Regional Council of Carpenters and Millwrights (MRCCM), in exchange for voting “no” on the 2018 legislative initiative petition to repeal Michigan’s prevailing wage law. The MRCCM did not respond as Inman allegedly requested. Inman ultimately voted “yes” on June 6, 2018, to repeal the law, and the Michigan House repealed the law by a vote of 56 to 53. The indictment includes the text messages allegedly from Inman to union representatives in the days before the vote, one of which Inman concludes by stating “we never had this discussion.”
The grand jury alleges that Inman committed the crime of attempted extortion by using his authority as an elected representative, namely his authority to vote on the petition to repeal the prevailing wage law, to seek to obtain money from the MRCCM with the union’s consent. If convicted of this offense, Inman faces up to twenty years in prison.
The grand jury also alleges Inman solicited a bribe by corruptly soliciting a political campaign contribution of money in exchange for something worth $5,000 or more, namely his vote on the petition to repeal the prevailing wage law. If convicted of this offense, Inman faces up to ten years in prison.
The grand jury further alleges that, when an FBI agent later asked Inman about his solicitation, Inman knowingly made a false statement to the agent denying he had any such communications. If he is convicted of this offense, Inman faces up to five years in prison.
The Lansing office of the FBI is investigating this case. The names of those not accused of a crime, such as witnesses, are redacted from the indictment. And the public is reminded that an
indictment contains only charges and is 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. A date for Inman’s arraignment has not yet been scheduled.END
Inman Indictment