Western District of Michigan
Press releases recorded for this federal judicial district.
Muskegon Man Found Guilty of Sex Trafficking and Distributing CocaineRead the Press Release
GRAND RAPIDS, MICHIGAN —On May 14, a jury convicted Richardo Urbina, of Muskegon, after six days of trial on three counts of sex trafficking minors; three counts of attempting to sex traffic minors; conspiring to sex traffic minors; sex trafficking an adult by force, fraud, or coercion; distributing cocaine; distributing cocaine base; and conspiring to distribute cocaine. He faces a mandatory minimum sentence of 15 years in federal prison and a maximum sentence of life.
In May of 2015, Urbina—then 54—began recruiting 16 and 17-year-old girls to have sex for money. He targeted runaways, who needed money and a place to stay. Urbina gave the girls alcohol and cocaine to make it more likely they would agree to "dance" or give "massages" to make money. The girls learned the men expected more than "dancing" and "massages" when they were in the room with men who expected them to engage in sex acts. After the girls completed sex acts and received money, Urbina took half of it.
Around September of 2016, Urbina recruited then 18-year-old Francisco Soto to help him recruit more underage girls. Soto befriended the girls by contacting them through Facebook, and he would offer to party with them. While partying, Urbina and Soto approached the girls about "dancing" and giving "massages."
Urbina and Soto used Backpage.com to advertise the girls for commercial sex, and the jury received over 500 pages of Backpage.com records in evidence. Urbina and Soto also used an application on their cell phones that allowed them to mask their true phone numbers. The jury received over 4,000 individual messages sent and received through the app, coordinating commercial sex dates.
At trial, ten girls testified about Urbina’s sexual exploitation of them while they were minors. One woman testified that during the summer of 2016, Urbina sex-trafficked her 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 made her have sex for money. When she tried to get away, Urbina hit and choked her. He also told her she owed him $1,000 because he was making so much money off of her. She escaped Urbina by secretly booking a hotel room and moving into it while he slept.
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 Davin M. Reust and Alexis M. Sanford.
END
Fraudulent Mariah Carey Concert Promoters SentencedRead the Press Release
Allen Dean Gordon Clayborn and Raul Pereida Defrauded the Lesbian and Gay Community Network of Western Michigan of $100,000 in Multistate Benefit Concert Swindle
GRAND RAPIDS, MICHIGAN — Raul Mejia Pereida appeared in U.S. District Court in Kalamazoo for sentencing in connection with a fraudulent scheme he carried out with codefendant Allen Dean Gordon Clayborn. U.S. District Judge Paul L. Maloney sentenced Pereida to 27 months in prison for his role in the offense. Once his sentence is complete, Peredia, an undocumented citizen of Mexico, will be deported. Judge Maloney sentenced codefendant Clayborn to 60 months in prison on April 26. Both men must also repay the $130,000 netted in the con.
Clayborn (age 35) and Pereida (age 47) were charged with wire fraud and identity theft in connection with a fraudulent concert scheme they carried out during 2015 and 2016. Clayborn, and Pereida, using aliases, pretended to represent singer Mariah Carey. They convinced two LGBT charities to pay a total of $130,000 to supposedly hire Carey to perform at charity concerts benefiting at-risk youth. One of charities targeted in the scheme was the Lesbian and Gay Community Network of Western Michigan, located in Grand Rapids. This organization paid $100,000 for Mariah Carey to perform an outdoor benefit concert scheduled at Calder Plaza on June 16, 2016. The other charity targeted by the men was a similar organization in Flagstaff, Arizona.
The scheme was sophisticated. It involved detailed contracts consistent with entertainment industry standards, trips to New York City and Las Vegas for charity organizers to hear Mariah Carey perform, complementary tickets that were altered to appear to be gifts from the singer, and bogus email accounts in the name of Carey’s road manager. All of this created the illusion that the victims were negotiating with actual employees of the singer’s production company. Mariah Carey knew nothing about this. The defendants used the money for their own purposes. Instead of raising money through the concert, the victim charities were left virtually insolvent.
U.S. Attorney Birge acknowledged the importance of the sentences handed down by Judge Maloney. "This scam did significant financial damage to two charities, which means all those who otherwise would have benefited from the charities suffered. The defendants succeeded in their swindle because these charities were anxious to have the money to do good things for their communities. Clayborn and Pereida deserved their punishment."
"Clayborn and Pereida are nothing more than con artists and thieves who - out of pure greed - compromised the availability of vital social and community services to the residents of Western Michigan and Arizona," said SAC Slater. "The FBI will ensure this type of fraud is vigorously investigated so that those who engage in it can be brought to justice."
The Federal Bureau of Investigation and Assistant U.S. Attorney Timothy VerHey prosecuted this case.
END
Sixth Defendant Sentenced in Holland-Area Heroin ConspiracyRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Jimmie "Peanut" Butler was sentenced on May 9, 2019, to 262 months’ incarceration followed by 10 years of supervised release for conspiring to distribute more than 100 grams of heroin and conspiring to distribute cocaine and cocaine base. Five of his co-defendants had previously pled guilty to federal charges stemming from the distribution of heroin in the Holland, Michigan area. The conspiracy, which trafficked heroin from Chicago into the Holland area and the Upper Peninsula is linked to numerous overdoses and at least one death.
"In the face of the opioid epidemic, the U.S. Attorney’s Office aggressively pursues those who poison our communities with heroin," said U.S. Attorney Birge. "This outcome is the result of the cooperation of federal, state, and local law enforcement agencies, which have jointly worked to investigate, charge and incarcerate those who take advantage of addicts for profit and spread heroin addiction."
"The City of Holland has been significantly impacted with numerous overdoses and deaths as a result of the opioid epidemic," said Captain Rick Walters, Holland Department of Public Safety. "This case is an example of local, state, and federal agencies collaborating together to protect and serve our local community. The Holland community has been positively impacted by the joint effort of all those involved and is appreciative of the federal assistance received in this investigation and prosecution."
"The West Michigan Enforcement Team views the heroin and opioid epidemic as a high priority for our investigators," said D/F/Lt. Andy Fias, Michigan State Police – West Michigan Enforcement Team (WEMET) Section Commander. "We utilize all tools available in fighting this epidemic. In the Butler case, we worked with our federal law enforcement partners to target this large drug trafficking organization that was plaguing the community with deadly drugs. Our collaboration again proved successful in holding those responsible accountable for their illegal trafficking."
Other members of the conspiracy were charged in an August 15, 2017 superseding indictment. The conspiracy spanned from as early as 2011 until July 2017, when the group was initially indicted. Each of the defendants has now been sentenced: Charles Oakley (156 months), Corey Gross (46 months), Jimmy Moore (33 months), Michael McKinley (24 months), and Monique Molina (24 months).
This matter was investigated by WEMET, the Holland Department of Public Safety, the Ottawa County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Sally J. Berens and Timothy VerHey prosecuted the case.
END
Former Medical Assistant Pleads Guilty to Prescription FraudRead the Press Release
Amanda Sheridan Forged Prescriptions for Pain Pills and Other Controlled Substances
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Amanda Sheridan, 38, of Hastings, Michigan pled guilty to acquiring controlled substances by fraud. She faces up to four years in federal prison for her crime.
Sheridan, who worked as a medical assistant at a doctor’s office in Grand Rapids, Michigan, stole a doctor’s prescription pads and forged his signature on 77 prescriptions for Norco, Adderall, and other highly-abused controlled substances. She wrote the forged prescriptions to herself and two other individuals, and obtained more than 4,000 prescription pills before she was caught.
"This type of crime feeds the opioid epidemic, which we and our partner agencies are committed to fighting," U.S. Attorney Birge said. "That commitment includes federal prosecutions of individuals who abuse their positions in the medical field to divert prescription controlled substances to the street."
The case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Clay Stiffler prosecuted the case.
END
Felch Man Found Guilty of Manufacturing and Possessing with Intent to Distribute MarijuanaRead the Press Release
MARQUETTE, MICHIGAN — A jury in federal district court in Marquette found Lee Edward Blomquist guilty of manufacturing or aiding and abetting the manufacture of more than 50 marijuana plants and of possessing or aiding and abetting the possession of those plants with the intent to distribute them. A sentencing date has not been scheduled.
Blomquist, 48, of Felch, maintained a marijuana grow operation on family property located in Felch and sold processed marijuana to a Wisconsin resident over a period of nine months. At the time of his arrest in 2017, police found 32 pounds of processed marijuana with a street value in excess of $100,000.00. In addition to the violation of federal controlled substance law the jury found, Blomquist was also in violation of Michigan’s Medical Marijuana Act because of the amount of marijuana involved, his sale to another state, and his status as a previously convicted felon.
The investigation into Blomquist’s marijuana grow operation began when detectives from the Kingsford, Iron Mountain, Norway, Dickinson (KIND) drug team conducted multiple controlled buys of marijuana from Blomquist’s Wisconsin associate. KIND detectives ultimately obtained a search warrant for the Blomquist property and found the marijuana grow building and processed marijuana. Blomquist admitted to selling marijuana to his Wisconsin associate and described his work on the marijuana grow as a full-time job. Pending trial in September 2018, the court granted Blomquist a one week furlough from custody to visit with his sick father and Blomquist fled the jurisdiction. His trial commenced after KIND investigators recaptured him in November 2018.
On February 7, 2019, Blomquist pleaded guilty to conspiracy to possess with intent to distribute marijuana and distribution of marijuana related to his Wisconsin associate. Blomquist was previously convicted in federal court of manufacturing marijuana and being a felon in possession of a firearm in 2003.
This case was prosecuted by Assistant U.S. Attorney Paul D. Lochner. Prosecution would not have been possible without the combined assistance of the KIND drug team, the Dickinson County Sheriff’s Office, the Kingsford Public Safety Department, the Iron Mountain Police Department, the Michigan State Police Crime Lab, and the Dickinson County Prosecutor’s Office.
END
Pharmacists Plead Guilty to Federal Drug Trafficking and Fraud ChargesRead the Press Release
John Shedd and Terry Tooley Admitted Filling Controlled Substance Prescriptions They Knew Were Written For No Legitimate Medical Purpose
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, pled guilty to conspiracy to distribute prescription drug controlled substances, and conspiracy to commit healthcare fraud. Shedd and Tooley, who formerly owned Parks Drug Store in Albion, Michigan, face up to five years in federal prison for their crimes. As part of their guilty pleas, they also agreed to permanently surrender their DEA pharmacy registrations, forfeit $1.2 million to the United States, and pay $500,000 in restitution to the healthcare benefit programs they defrauded.
Shedd and Tooley admitted that they filled opioid prescriptions written by former Albion doctor Horace J. Davis, even though they knew those prescriptions had been written for no legitimate medical purpose. Dr. Davis was convicted in 2017 of federal drug trafficking crimes and healthcare fraud. Shedd and Tooley also admitted they conspired to bill Medicare, Medicaid, and Blue Cross Blue Shield of Michigan for prescriptions that were never written, and forged documents in connection with their false healthcare billings.
"We are committed to fighting the opioid epidemic, and will prosecute the doctors, nurses, pharmacists, and other healthcare providers who feed the epidemic by writing and filling opioid prescriptions for no legitimate medical purpose," U.S. Attorney Birge said.
Timothy Plancon, Special Agent in Charge of the DEA’s Detroit Field Division said, "Today’s guilty plea exemplifies DEA’s determination to combat the troubling prescription drug and opiate abuse problem currently plaguing this country."
Manny Muriel, Special Agent in Charge of Detroit’s IRS Criminal Investigation, stated, "Shedd and Tooley submitted bogus claims to Medicare, Medicaid and others, resulting in hundreds of thousands of dollars going into their own pockets. The IRS is aggressively pursuing unscrupulous medical professionals that defraud American taxpayers."
The investigation was conducted by the Albion Department of Public Safety, Calhoun County Sheriff’s Office, DEA, and IRS Criminal Investigations. Assistant United States Attorney Clay Stiffler prosecuted the case.
END
DEA and Partners Hold National Prescription Drug Take Back Day on April 27Read the Press Release
DETROIT – With robust public participation over the course of 16 prior events, the National Prescription Drug Take Back Day Initiative continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they are vulnerable to misuse, theft or abuse by family members and visitors, including children and teens. In continuation of this effort, DEA and its national, tribal and community partners will hold the 17th National Prescription Drug Take Back Day across the country on Saturday, April 27. The service is free and anonymous.
Now in its ninth year, DEA has collected a total of nearly 11 million pounds (more than 5,400 tons) of expired, unused and unwanted prescription medications through its Take Back Day events. This weekend, approximately 6,000 collection sites manned by nearly 5,000 partner law enforcement agencies will be open 10 a.m. to 2 p.m. local time. The public can find a nearby collection site at www.DEATakeBack.com or by calling 800-882-9539. (DEA cannot accept liquids, needles or sharps.)
"The U.S. Drug Enforcement Administration is committed to working with all of our partners to stem the tide of drug abuse and addiction across the nation," said Special Agent in Charge Timothy Plancon. "The National Prescription Drug Take Back Day is one way that we can all make a difference in our community by safely disposing of unwanted medication. This unwanted medicine often ends up in the wrong hands. While it might seem insignificant, safely disposing of unwanted prescription drugs can truly save lives."
Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The majority of prescription drug abusers say they get their drugs free from friends and family, including from the home medicine cabinet. Take Back Day is a unique opportunity for Americans to protect their homes and medicine cabinets from theft and abuse.
National Take Back Day has received enthusiastic public support since its inception in 2010. Last October, the public turned in 457 tons (914,236 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and nearly 4,800 of its local and tribal partners.
END
Suttons Bay Man Sentenced to 37 Months in Federal Prison for Domestic Violence Strangulation of A Native American WomanRead the Press Release
GRAND RAPIDS, MICHIGAN – Joaquin Ramon Alfonseca, 41, from Suttons Bay, Michigan, was sentenced to 37 months in federal prison for Assault by Strangulation of a Native American woman, U.S. Attorney Andrew Birge announced today. In addition to the prison term, U.S. District Judge Gordon J. Quist imposed a 3-year term of supervised release that will commence once Alfonseca is released from imprisonment.
Alfonseca pled guilty on October 15, 2018. He admitted that during an argument, he had used both of his hands to grab the victim by the neck and apply pressure to her neck. This pressure impeded the victim’s normal breathing, and the assault left marks and swelling on the victim’s face and neck. The victim reported that on a prior occasion, Alfonseca had strangled her to the point of unconsciousness. The United States had jurisdiction over the case because it occurred on the reservation of the Grand Traverse Band of Ottawa and Chippewa Indians.
In its sentencing memorandum, the U.S. Attorney’s Office argued in favor of meaningful jail time because assault by strangulation is extremely dangerous and poses great risk to its victims. The United States noted that Alfonseca had a history of domestic violence, and it argued that his conduct in this case was particularly serious because it was part of a pattern of domestic abuse and continued a pattern of abuse involving strangulation and attempted strangulation.
The Grand Traverse Band Tribal Police Department and the Federal Bureau of Investigation (FBI) investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
END
Former Owner of Large Michigan Farming Operation Pleads Guilty to Bank Fraud and Crop Insurance FraudRead the Press Release
Mike Stamp Owned Stamp Farms, Fraudulently Obtained a $68 Million Operating Loan
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Mike Stamp, age 46, of Decatur, Michigan, pled guilty to conspiracy to commit bank fraud and conspiracy to commit crop insurance fraud. The convictions arise from acts that occurred while he owned and operated Stamp Farms. Stamp’s wife, Melissa Stamp, age 38, pled guilty to misprision of a felony for some of her actions in connection with Stamp Farms.
Mike Stamp admitted he fraudulently obtained a $68 million operating loan from Wells Fargo Bank in December 2011 by misrepresenting the amount of land he farmed and the value of his company’s assets, including harvested grain, fertilizer and fuel. After he obtained the loan, he continued to make misrepresentations to Wells Fargo about his business, including by creating false farmland leases and other documents.
Mike Stamp also admitted that he defrauded the federal crop insurance program by filing false claims, falsifying harvested crop records, and obtaining crop insurance in the names of entities with no insurable interest.
Melissa Stamp admitted that she was aware of Mike Stamp’s fraud, did not report it to authorities, and helped hide money from Wells Fargo and other creditors of Stamp Farms.
"Bank fraud is a very serious financial crime," said Manny Muriel, Special Agent in Charge of IRS-Criminal Investigation for the Detroit Field Office. "Providing false or misleading documents to financial institutions undermines the integrity of our financial system and will not be tolerated."
Anthony Mohatt, Special Agent-In-Charge, United States Department of Agriculture-Office of Inspector General, said, "The efforts of the investigative team provide a strong deterrent to those committing fraud against the federal crop insurance program and will help protect the integrity of this program thus ensuring that taxpayer dollars are safeguarded. We will continue to work towards our goal of prosecuting individuals who commit fraud in crop insurance programs."
The case was investigated by IRS-Criminal Investigations and USDA-Office of Inspector General. AUSA Clay Stiffler and former AUSA Mike MacDonald handled the prosecution.
END
Michigan Fish Dealer Sentenced for Unlawful Trafficking in Michigan Lake TroutRead the Press Release
GRAND RAPIDS, MICHIGAN – John H. Cross III (Cross) and John Cross Fisheries Inc. (Cross Fisheries) were sentenced in Kalamazoo, Michigan, for trafficking in illegally transported and sold lake trout, announced Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division and United States Attorney Andrew Birge for the Western District of Michigan. Cross Fisheries was also sentenced for making false records about whitefish purchases.
The two defendants previously had pled guilty to one misdemeanor count of violating the Lacey Act by knowingly selling and attempting to sell in interstate commerce lake trout, when they should have known the fish was possessed and sold in violation of underlying State law, specifically Mich. Comp. Laws, Sections 324.47333 and 324.47319 which prohibit any person from marketing, possessing, or offering for sale any fish illegally taken from the relevant waters. Cross Fisheries also pled guilty to one felony count of violating the Lacey Act by knowingly making a false record and account of whitefish that was intended to be sold and transported in interstate commerce.
Cross was ordered to serve 12 months in prison – intermittently during a five year term of probation – for his role in trafficking lake trout. Cross Fisheries was sentenced to five years’ probation. Both defendants were ordered to pay $1,032,132.00 in restitution, jointly and severally, to the National Fish Hatcheries, which stock Lake Michigan with lake trout. In addition, Cross Fisheries was ordered to create and implement a compliance plan to prevent such violations from reoccurring.
"Purchasing illegally caught fish for interstate sale and then covering up the source of those fish by falsifying records is cheating, plain and simple — and where discovered, the Justice Department will seek to punish such conduct," said Assistant Attorney General Jeffrey Bossert Clark. "For three years, Cross Fisheries harmed law-abiding competitors and the American taxpayers who fund the stocking of Lake Michigan with trout, but that conduct has now come to an end."
"The federally funded stocking of fish and the regulations designed to preserve these natural and communal resources were simply treated as an opportunity for extra profit here and in other cases stemming from Operation Fishing for Funds. This was essentially stealing from competitors, the government, and ultimately the future," commented U.S. Attorney Andrew Birge.
"We are pleased to see this long-term illegal commercialization come to an end. This type of large-scale wildlife trafficking can significantly impact the sustainability of the resources we are charged to protect. This is especially relevant because we have been working for years to restore the Great Lakes fishery," said Edward Grace, Assistant Director of the Office of Law Enforcement.
According to documents filed in court, between September 2011 and October 2013, Cross and Cross Fisheries repeatedly purchased lake trout from "Fisherman A," who Defendants knew and should have known to be a tribal fisherman who fished from a boat that was converted to trap net gear at taxpayers’ expense and thus could not lawfully harvest lake trout. Cross and Cross Fisheries made and submitted records and accounts of these purchases stating that the seller was "Fisherman B" (who Defendants knew and should have known to be a licensed gillnet fisherman who could legally harvest lake trout).
Between approximately September 2011 and October 2013, Cross Fisheries, through its officers and employees, including Cross, made approximately forty-two purchases of lake trout from "Fisherman A," totaling approximately 48,498 pounds, all of which was falsely reported by Cross Fisheries on its Wholesale Fish Dealer’s Purchase Records as being from "Fisherman B’s" gillnet license, and subsequently offered for sale and sold by Cross and others in interstate commerce.
This sentencing is one of the final pending cases arising from Operation Fishing for Funds, an undercover operation run for approximately two years by Special Agents of the U.S. Fish and Wildlife Service (USFWS). This undercover operation investigated the illegal harvest and sale of fish (primarily walleye and trout) taken from the Great Lakes. As part of the investigation, USFWS agents established and operated an undercover wholesale fish business in Baraga, Michigan, named Upper Peninsula North Fish Company (UPNFC). UPNFC bought and sold fish wholesale from individuals across the region, and also sold fish retail.
The Operation has resulted in twenty-one convictions, seven in tribal courts and fourteen in federal courts. To date, over $1.6 million in total restitution has been ordered to the USFWS National Fish Hatcheries and tribal fish hatcheries; this amount reflects the funds needed to restock hatchery fingerlings necessary to replace the illegally harvested fish.
The Lacey Act, 16 U.S.C. §§ 3371-3378, prohibits trafficking in fish and wildlife or plants taken, possessed, transported, or sold in violation of underlying federal, state, foreign, or Indian tribal law. The Lacey Act also prohibits making or submitting a false label, record, or account of fish, wildlife, or plant that has been or is intended to be transported in interstate or foreign commence.
Operation Fishing for Funds was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement with assistance of the Michigan and Wisconsin Departments of Natural Resources. The prosecutions were handled by prosecutors from the Environmental Crimes Section of the U.S. Department of Justice, with assistance from the U.S. Attorney’s Offices for the Western and Eastern Districts of Michigan, and the Eastern District of Wisconsin, as well as The Grand Traverse Band of the Ottawa & Chippewa Indians, the Red Cliff Band of Lake Superior Chippewa, and the Sault St. Marie Tribe of Chippewa Indians.
END
Excluded Felon Sentenced to Twelve Years for Health Care Fraud and Aggravated Identity TheftRead the Press Release
Babubhai Rathod Ran Multiple Health Care Providers After Being Convicted And Excluded From Medicare And Medicaid For Paying Illegal Kickbacks
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Babubhai Bhurabhai Rathod, of Okemos, Michigan, was sentenced to 10 years in prison for health care fraud and an additional 2 years in prison for aggravated identity theft. Rathod pleaded guilty to both charges in August 2018. U.S. District Judge Janet T. Neff also ordered Rathod to pay $939,795.89 in restitution to Medicare and Medicaid.
In 2013, Rathod was sentenced to four years in prison—and was further excluded from participating in Medicare and Medicaid—after being convicted of paying practitioners illegal kickbacks in exchange for patient referrals to his health care companies. While in prison, Rathod faked a drug and alcohol use disorder in order to qualify for admission into the Residential Drug Abuse Program ("RDAP"). Rathod completed RDAP and was released early from custody. Within days of his release in 2016, Rathod began violating his exclusion and supervised release conditions by operating four health care providers across the State of Michigan: Advanced Medical Services (d/b/a Advanced Sleep Diagnostics of Michigan); Sleep Diagnostics of Michigan; EZ Sleep Supplies; and Paramount Home Care. To conceal his ownership of these providers from Medicare and Medicaid, Rathod used a variety of aliases, straw owners, and shell holding companies that were registered to other people. Rathod’s scheme netted nearly a million dollars in Medicare and Medicaid reimbursements to which his providers were not entitled.
As part of his scheme, Rathod used the name, address, date of birth, Social Security Number, and driver’s license of a physician colleague to obtain working capital loans for Advanced Medical Services. Rathod also used the physician’s identity, without the physician’s knowledge, to personally guarantee those loans. When Advanced Medical Services defaulted on one of these loans, a state-court judgment was entered against the physician—without the physician’s knowledge—and the physician’s bank account was frozen.
At sentencing, Judge Neff noted the "breadth, scope, and depth" of Rathod’s fraud and remarked that he was "stealing from the government. That is what this is." Judge Neff described Rathod as both "a man for whom the truth is a stranger" and a naturalized citizen who has "taken advantage of opportunities available in this country to steal from it."
"The resources it took to unravel Mr. Rathod’s elaborate scheme reflects our commitment to holding accountable those who would violate their federal program restrictions," U.S. Attorney Birge said.
"Exclusion is one of the most important tools that HHS-OIG has to protect beneficiaries and counter fraud and abuse in federal health care programs", said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. "Mr. Rathod intentionally and recklessly tried to circumvent his 20 year exclusion in an attempt to line his pockets with vital taxpayer dollars. Excluded providers need to know that HHS-OIG takes its exclusions authority seriously and will ensure that it is strictly enforced."
This case was the result of a coordinated investigation by the U.S. Attorney’s Office for the Western District of Michigan, the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and Blue Cross Blue Shield of Michigan. Assistant U.S. Attorneys Adam B. Townshend and Raymond E. Beckering III represented the United States.
END
United States Attorney's Office Marks Women's History Month by Honoring the First and the Most Recent Female Assistant United States Attorneys in the DistrictRead the Press Release
GRAND RAPIDS, MICHIGAN —U.S. Attorney Andrew Birge’s office took the occasion of Women’s History Month to recognize a pioneer in the practice of law who his office can call its own: Ella Mae Backus. In 1923, Ms. Backus became the first female Assistant U.S. Attorney (AUSA) in Michigan. At the time, she was only the sixth such female attorney in the entire Department of Justice. Ms. Backus had actually been working in the Western District U.S. Attorney’s Office since 1903 as a Clerk, even though she had passed the bar in 1895 without the benefit of law school and had previously handled cases of her own in private practice. U.S. Attorney Edward Bowman, initially endeavoring to give Ms. Backus a mere raise, ultimately secured a second AUSA position for the office and appointed her to it when he learned it was the only way to increase her pay. As rare as it was at the time, the appointment was overdue. By 1911, Ms. Backus had been appearing in court on behalf of the United States as only a licensed lawyer can. During an era when AUSAs tended to serve no longer than the tenure of the U.S. Attorney who hired them and well before civil service protections, Ms. Backus worked for a total of 35 years under six different U.S. Attorneys. She cemented her legacy of dedication and service when she refused to go home ill the day before she passed away at the age of 76 in 1938.
AUSA Ella Me Backus
Ms. Backus at work in the office.
Ms. Backus at work with colleagues.In 2017, Ms. Backus was posthumously inducted into the Michigan Women’s Hall of Fame. She has been featured on the U.S. Attorney’s Office website for many years, at https://www.justice.gov/usao-wdmi/about/history. Her life and times are well documented in scholar Ruth Stevens’ "Assistant US Attorney Ella Mae Backus: ‘A most important figure in the legal profession in the Western District of Michigan’" (2016). Peer Reviewed Publications. 15. https://scholarworks.gvsu.edu/scjpeerpubs/15.
As of March 2019, there are fourteen female AUSAs in the U.S. Attorney’s Office for the Western District of Michigan. Many hold key positions, including the Chief of the Appellate Division and the coordinators of the Organized Crime and Drug Enforcement Task Force (OCDETF), the Project Safe Neighborhoods (PSN) program and the summer intern program. U.S. Attorney Birge proudly noted that in the last six months, three new and distinguished women lawyers joined his team of outstanding men and women. In September, Tonya Long transferred to Grand Rapids from the Miami U.S. Attorney’s Office. An alum of Harvard Law School, Ms. Long began her career clerking for federal judges, including Sixth Circuit Court of Appeals Judge R. Guy Cole. In February, Kristin Pinkston, a graduate of the Indiana University Maurer School of Law, joined the office after ten years with the Chicago Law Department, including as a supervisory attorney. And earlier this month, Erin Lane, who graduated magna cum laude from the Michigan State University College of Law, joined the office after serving overseas with the U.S. Department of State Bureau of International Narcotics & Law Enforcement Affairs.
END
Justice Department Files Statement of Interest in Michigan Church Religious Land Use CaseRead the Press Release
The Justice Department today filed a Statement of Interest in U.S. District Court for the Western District of Michigan supporting a church’s claims that the City of St. Ignace, Michigan, violated its rights under the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) by barring it from locating a church and coffee shop in the City’s downtown zoning district.
“Religious groups in America have the fundamental constitutional right to use land for religious exercise, free from discriminatory restrictions, and to be treated on equal terms with nonreligious groups,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to enforce federal civil rights laws protecting religious freedom so that communities across the country can establish and grow their places of worship.”
“My office is pleased to take action to help protect these fundamental rights and to ensure that local zoning actions and ordinances that violate the law by failing to treat individuals and religious institutions on equal terms with nonreligious assemblies or institutions will not stand,”said Andrew B. Birge, United States Attorney for the Western District of Michigan.
The case, Hope Lutheran Church v. City of St. Ignace, involves a congregation that sought to purchase property in the City’s downtown General Business District to locate a church that would include outreach activities, including a nonprofit coffee shop. After the City denied approval, the church filed a lawsuit, alleging that the City barred it from operating in the business district even though the City permits other similarly situated secular assembly uses to operate in the district, including municipal buildings, assembly halls, and theaters.
The United States’ Statement of Interest argues that Hope Lutheran Church has properly stated a claim under RLUIPA’s “equal terms” provision, and that the City’s justifications for barring churches from the business district, such as tax generation and the impact of Michigan’s law limiting the distance between churches and liquor-serving establishments, are not valid bases under RLUIPA to treat churches less favorably than similarly situated secular assemblies.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. Last year, the Justice Department announced its Place to Worship Initiative, which focusses on RLUIPA’s provisions that protect the rights of religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 or the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or on the complaint portal on the Place to Worship Initiative website.
Battle Creek Woman Sentenced to 3 Years in Federal Prison for Filing False Tax ReturnsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that U.S. District Judge Janet Neff sentenced Tammy Sue Burdette, 52, of Battle Creek, to 36 months in prison and ordered her to pay $569,852 in restitution for filing false tax returns.
From 2009 through 2012, Burdette was employed as the office manager at VHC, PC and stole more than $3 million. Burdette wrote checks payable to herself from VHC’s bank account and spent the money gambling. Burdette failed to account for the money on her income tax returns.
"The defendant, Tammy Sue Burdette, stole more than $3 million and willfully failed to report that income to the Internal Revenue Service. Her conduct deprived the American taxpayer of $569,852 in tax revenue," stated IRS Criminal Investigation Special Agent in Charge Manny Muriel. "As we approach the April 15 tax deadline, the public can rest assured that the special agents of IRS Criminal Investigation will continue to protect the U.S. tax system, ensuring everyone accurately reports their income and pays their fair share of taxes."
The case was investigated by IRS Criminal Investigations. Assistant U.S. Attorney Clay Stiffler handled the prosecution.
Four Lansing Men Sentenced in Food Stamp Fraud CaseRead the Press Release
GRAND RAPIDS, MICHIGAN - United States Attorney Andrew Birge announced today that four Lansing-area men have been sentenced in connection with convictions arising out of a USDA investigation into fraud at convenience stores in Lansing, Michigan, where customers were allowed to buy prohibited items (such as cigarettes) or receive cash in exchange for Supplemental Nutrition Assistance Program benefits (also known as food stamps).
Raymond Gedeon, Edward Gedeon, and Youssef El-Chaer were convicted of conspiracy to defraud the United States in violation of 18 U.S.C. § 371. Raymond Gedeon and Edward Gedeon were each sentenced to 24 months’ custody and two years of supervised release. Raymond Gedeon was ordered to pay restitution of more than $485,000. Edward Gedeon was ordered to pay restitution of more than $241,000. El-Chaer was ordered to pay restitution of more than $39,000. Elias Abudaya was convicted of food stamp fraud in violation of 7 U.S.C. § 2024(b) and sentenced to six months’ incarceration and restitution of more than $241,000.
"My office will aggressively prosecute individuals who attempt to defraud taxpayer-funded programs, such as those designed to assist members of our community in need," U.S. Attorney Birge said.
USDA Special Agent-in-Charge Anthony V. Mohatt said, "The Supplemental Nutrition Assistance Program helps put healthy food on the table of 1.3 million Michigan residents each month. The criminal activities of the store owners and employees targeted during this investigation deprived needy citizens of the Lansing area access to nutritious meals. The USDA Office of Inspector General will continue to target those who prey on federal food assistance programs, and their recipients."
The case was jointly investigated by the USDA Office of Inspector General and the FBI Lansing Resident Office. Assistant U.S. Attorneys Sally J. Berens and Nils Kessler prosecuted the case.
END
Kentwood Man Pleads Guilty to Interstate Threat to U.S. SenatorRead the Press Release
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that Rick Lynn Simmons, 52, of Kentwood, Michigan pleaded guilty before a U.S. Magistrate Judge to one count of 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, in violation of 18 U.S.C. § 875(c). Simmons faces a maximum of 5 years’ imprisonment, 3 years’ supervised released, and a $250,000 fine. A sentencing hearing is scheduled for June 5, 2019, before U.S. District Judge Janet T. Neff.
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 vulgarity-filled voicemail message that threatened to "put a nine millimeter" into the Senator’s face.
"No individual, whether a public official or a member of the public, deserves to field threatening messages designed to dehumanize, intimidate and terrorize," U.S. Attorney Birge said.
"The FBI works closely with the U.S. Capitol Police to investigate threats to harm or kill public officials wherever those threats originate," said FBI Detroit Field Office Special Agent in Charge Timothy R. Slater. "In this case, the targeted individual was a Senator, but we remain committed to safeguarding the rights of all individuals."
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 is prosecuting the case.
END
Holland Attorney Charged with Defrauding Clients and Filing A False Federal Income Tax ReturnRead the Press Release
Attorney Jeffrey Palmer Admits Embezzling More Than $339,000 From Clients and Underreporting Income to the Internal Revenue Service
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that Jeffrey James Palmer, a resident of Holland, Michigan, has been charged with making a false statement on a federal income tax return and wire fraud. Palmer has agreed to waive indictment by the grand jury and plead guilty to those charges. Palmer also agreed to pay the Internal Revenue Service additional tax due and owing for tax years 2012 through 2016 (approximately $55,511, before interest and penalties) and restitution to his victims (approximately $339,520).
In a written plea agreement filed today with the Court, Palmer admitted that he embezzled and converted to his own use approximately $339,520 of client trust funds while licensed and practicing as an attorney. Between 2012 and 2016, Palmer withdrew approximately $274,856 from one client trust account and about $64,664 in funds from a second client trust account. He did not disclose to his clients that he was withdrawing their funds for his own personal use and benefit.
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. Specifically, and by way of example, Palmer failed to report $82,000 of income on his federal Form 1040, which he signed and filed with the IRS under penalty of perjury in January 2017.
Palmer faces a maximum of 20 years in federal prison for his embezzlement from his clients and up to three years in prison for the federal tax violation. He also faces the possibility of a suspension or revocation of his license to practice law in Michigan.
This matter was investigated by the Internal Revenue Service Criminal Investigation division and is being prosecuted by Assistant U.S. Attorney Christopher M. O’Connor.
A date and time for Palmer’s arraignment and plea has not been scheduled. The charge in a felony information is merely an accusation, and the defendant is presumed innocent until proven guilty in court.
END
Home Health Nurse Sentenced to Federal Prison for Tampering with Patients' MedicationRead the Press Release
Kristie Mollohan Stole and Diluted Seizure Medication From Disabled Patients
GRAND RAPIDS, MICHIGAN —Kristie Ann Mollohan, 42, formerly of Kalamazoo, Michigan and currently of Cosby, Tennessee, was sentenced to 82 months in prison for drug tampering, U.S. Attorney Andrew Birge announced today. In addition to the prison term, U.S. District Judge Gordon J. Quist imposed a 2-year term of supervised release that will commence once Mollohan is released from federal prison.
Mollohan pled guilty on May 10, 2018, to two counts of drug tampering, involving liquid diazepam (Valium), a Schedule IV controlled substance. Mollohan, who was a licensed practical nurse working for a home health company, admitted to stealing Valium from three patients in two homes in August of 2016. All three patients relied on Valium to suppress life-threatening seizure activity, were completely disabled, and required 24-hour care by their families or other caregivers at the time of the thefts. Mollohan replaced the Valium that she stole with water or saline solution, leaving the patients’ medication 90-99% diluted. Mollohan acknowledged that her conduct resulted in one of the patients having a life-threatening seizure.
In imposing sentence, Judge Quist called Mollohan’s conduct "reprehensible." He emphasized that patients must rely on medical professionals to be honest and act professionally, to administer patients’ drugs and not steal them. Judge Quist remanded Mollohan to begin serving her federal sentence at the end of the sentencing hearing.
In its sentencing memorandum, the U.S. Attorney’s Office noted that federal drug tampering involves the "reckless disregard for the risk that another person will be placed in danger of death or bodily injury and under circumstances manifesting extreme indifference to such risk." The U.S. Attorney’s Office emphasized that Mollohan was previously investigated for stealing a patient’s medication and argued that Mollohan "used that experience to devise a plan to steal medication in a manner that would be both harder to uncover and more dangerous to her patients."
U.S. Attorney Birge stated: "Licensed health care professionals who not only steal drugs but then render those drugs dangerous or ineffective are committing a heinous offense. Patients may not know – and in this case may not be able to express -- that something is wrong with their medication until it is too late and they suffer a serious consequence. My office will continue to work with the Food and Drug Administration as well as state and local investigators to punish and deter professionals who engage in such deceitful and dangerous conduct."
"Patients deserve to have confidence that they are receiving the proper treatment from those entrusted with providing their medical care," said Special Agent in Charge William P. Conway, FDA Office of Criminal Investigations’ Chicago Field Office. "However, we must hold medical personnel accountable when they take advantage of their unique position and tamper with drugs needed by their patients, especially when such tampering causes unnecessary pain and suffering for those who are unable to care for themselves."
This matter was investigated by the Food and Drug Administration, Office of Criminal Investigations, the U.S. Department of Health and Human Services, Office of Inspector General, the Michigan State Police, and the Allegan Police Department. The Barry and Allegan County Prosecutors’ Offices also cooperated with the investigation. Assistant U.S. Attorney Raymond E. Beckering III prosecuted the case.
END
Leader of Identity Theft Conspiracy SentencedRead the Press Release
The conspirators helped illegal aliens obtain Michigan driver’s licenses. These aliens had criminal convictions that previously led to their removal to the Dominican Republic.
GRAND RAPIDS, MICHIGAN — Michelle Martinez-Marte, 37, of Rhode Island, was sentenced to 4 years in federal prison, U.S. Attorney Andrew Birge announced today. Martinez- Marte previously pled guilty in the Western District of Michigan to charges returned by grand juries in both Michigan and Massachusetts related to her involvement in a conspiracy to assist illegal aliens from the Dominican Republic with obtaining driver’s licenses using the identities of others. In sentencing Martinez-Marte, Chief U.S. District Judge Robert J. Jonker commented that Martinez-Marte was at the center of a very significant conspiracy that assisted others with prior criminal records in residing illegally in the United States.
U.S. Attorney Birge added that, "The use of someone else’s identity is a very serious crime. This conspiracy was particularly brazen because defendants assisted many individuals previously removed from our country after criminal convictions – including drug-trafficking crimes – in establishing new identities through Michigan driver’s licenses so that they could again live in our country undetected by immigration authorities. My office will continue to vigorously prosecute those who enter this country illegally and steal the identities of innocent citizens."
Between at least April 4, 2016, and July 20, 2017, Martinez-Marte conspired with Eddie Michael Balderramas of Kalamazoo, Michigan, to commit identity theft and social security account number fraud. Martinez-Marte, a citizen of the Dominican Republic illegally residing in Rhode Island, assisted other illegal aliens from the Dominican Republic in acquiring counterfeit Puerto Rican birth certificates, driver’s licenses, and social security account number cards in the names of actual individuals. Martinez-Marte would then refer the illegal aliens to Eddie Balderramas. Eddie Balderramas would travel to New York City and transport the illegal aliens to Michigan, where they would be harbored at a home in Kalamazoo. Eddie Balderramas produced false leases, paystubs, and other documents to make it appear as if the illegal aliens were truly Michigan residents. Eddie Balderramas would then transport the illegal aliens to Michigan Secretary of State Offices and would use the counterfeit Puerto Rican and Michigan residency documents to acquire authentic Michigan driver’s licenses for these illegal aliens using the name, social security account number, and other personal identifiers of actual individuals. The illegal aliens paid Eddie Balderramas for their assistance so that they could live in the country without detection by immigration authorities, as many were previously removed from the United States in their real names after sustaining criminal convictions.
"Sadly, the long-term outcome of identity-theft crimes act as an almost permanent destabilizing force on the lives and livelihoods of the victims. These crimes often impact the victims’ ability to obtain lines of credit and current or future job prospects, among other things," said Steve Francis, Homeland Security Investigations Detroit special agent in charge. "This case demonstrates HSI’s unwavering commitment to see that perpetrators of identity crimes are brought to justice."
Martinez-Marte is the latest of five individuals sentenced for their roles in the conspiracy. Previously sentenced were:
• Eddie Michael Balderramas, 51, Kalamazoo, Michigan, leader of conspiracy (4 years’ imprisonment)
• Michael James Balderramas, 28, Kalamazoo, Michigan, son of Eddie Michael Balderramas and member of conspiracy (3 years’ probation)
• Freddy Medina, 39, Dominican Republic, illegal alien who obtained Michigan driver’s license through fraud (1 year imprisonment, followed by deportation)
• Victor Manuel Calderon-Rodriguez, illegal alien who obtained Michigan driver’s license through fraud (imprisonment of 12 months and 1 day, followed by deportation)
Others currently convicted and awaiting sentencing include:
• Malkin Arialdys Villar-Medrano, 45, Dominican Republic, illegal alien who obtained Michigan driver’s license through fraud (sentencing March 14, 2019, Grand Rapids)
• Julio Francisco Troncoso-Marinez, 37, Dominican Republic, illegal alien who obtained Michigan driver’s license through fraud (sentencing March 11, 2019, Grand Rapids)
• Juan Manuel Pena-Zapata, 39, Dominican Republic, illegal alien who obtained Michigan driver’s license through fraud (sentencing February 19, 2019, District of Rhode Island)
This prosecution was the result of a cooperative effort between local, State, and Federal law enforcement in Michigan and Massachusetts. The Michigan State Police worked closely with the Michigan Secretary of State’s Office upon receiving information from Boston police that individuals arrested on drug-trafficking charges possessed Michigan driver’s licenses with common addresses in Kalamazoo. Those offices then assisted the federal investigation, which was handled by the Grand Rapids offices of the Department of Homeland Security, Homeland Security Investigations, and the United States Drug Enforcement Administration. Assistant United States Attorney Ronald M. Stella handled the prosecution with cooperation and important assistance from the United States Attorney’s Office in Boston.
END
Federal Court Sentences California-Based Drug Trafficking Head to 42 Years in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – United States Attorney Andrew Birge announced today that Alex Alberto Castro received 42 years in prison for conspiring to distribute heroin and cocaine. A federal jury convicted Castro in October 2018. He was the lead defendant of a 20-defendant drug conspiracy that began in 2013 and continued until all defendants were arrested in 2017. Chief United States District Judge Robert J. Jonker handed down the sentence..
Evidence presented at trial proved Castro to be the lead California-based drug distributor, responsible for sending heroin and cocaine to Grand Rapids, Michigan, Indianapolis, Indiana, and Kansas, through the use of trap-cars, semi-trucks with custom-made concealed compartments, and car trailers. Castro employed multiple drivers and maintained his drug distribution deliveries even while in prison for a federal supervised release violation in 2016.
The conviction was the result of a multi-agency Federal and State investigation into the conspiracy. The investigation began in 2016 and continued through 2017 and involved the wiretap of seven separate telephones used by multiple coconspirators. In total, 24 defendants were convicted as a result of the charges brought in the investigation. During the arrests of the defendants and execution of associated searches, federal and state investigators seized over 30 kilograms of heroin, cocaine and fentanyl, multiple pounds of marijuana, two kilogram presses, over $1,300,000 in drug proceeds, a bullet-proof vest, three handguns and an assault rifle with an extended magazine.
"Heroin, fentanyl and cocaine - trafficked into our state from other regions—have been a scourge to our community. In Kent County alone, the number of overdose deaths from controlled substances increased by over 50% from 2016 to 2017 and we lost 156 of our neighbors to overdoses in 2017,” stated U.S. Attorney Birge. “Our federal and state law enforcement partners will not rest until they have traced these drugs to their source, like Mr. Castro. Stiff penalties like the one the Court issued here are warranted for those who would profit from this poison."
DEA Special Agent in Charge Tim Plancon added, “This investigation is an example of DEA’s continuing effort to target the distribution of dangerous drugs at the highest level in western Michigan. Castro was part of a drug distribution network spanning from Mexico to Michigan and beyond. The men and women of DEA, along with our law enforcement partners and federal prosecutors, will continue our relentless pursuit to identify and investigate those trafficking illicit narcotics and committing related violent acts in our communities."
Manny Muriel, Special Agent in Charge of the Detroit’s IRS Criminal Investigation, stated, “IRS-CI will continue to exploit its forensic capabilities to identify, trace and dismantle the financial networks of those individuals and organizations that bring drugs and crime into our state, exhausting all avenues to deny these criminals of their financial reward. Equally important, IRS-CI will utilize the forfeiture statutes to deprive these individuals and organizations of their ill-gotten gains."
The Drug Enforcement Administration (DEA), Internal Revenue Service (IRS), Federal Bureau of Investigation (FBI), Vice Unit of the Grand Rapids Police Department (GRPD), Kent County Sheriff’s Department (KCSD), Wyoming Police Department, Michigan State Police (MSP), Kent Area Narcotics Enforcement Team (KANET), Metropolitan Enforcement Team (MET), U.S. Secret Service (USSS), Bureau of Alcohol Tobacco and Firearms (ATF), Kalamazoo Valley Enforcement Team (KVET), Albion P.D., Calhoun County Sheriff Department, and South West Enforcement Team (SWET) have all supported the investigation.
The image below shows items recovered through the law enforcement operation.
END
Muskegon Heights Man Sentenced to 120 Months in federal Prison for Drug and Firearm OffensesRead the Press Release
GRAND RAPIDS, MICHIGAN – Willie Earl Hector, 33, of Muskegon Heights, Michigan, was sentenced to 120 months (10 years) in federal prison for drug and firearm offenses, U.S. Attorney Andrew B. Birge announced today. In addition to the prison term, U.S. District Judge Janet T. Neff imposed a 3-year term of supervised release that will commence once Hector is released from imprisonment.
Hector pled guilty on October 5, 2018, to one count of Being a Felon in Possession of a Firearm and Ammunition, and one count of Possessing a Controlled Substance (Fentanyl) with Intent to Distribute. Hector came to the attention of police in Summer 2017 after a surveillance camera captured him walking around his home brandishing an AK-47 style rifle. Hector is prohibited from possessing firearms because he has nine prior felony convictions plus a conviction for domestic violence.
Picture of Willie Earl Hector bransishing and AK-47 style rifle
The ATF executed a search warrant at Hector’s residence in October 2017. Agents recovered two rifles, ammunition, 19.425 grams of fentanyl, other drugs, and drug paraphernalia. In its sentencing memorandum, the U.S. Attorney’s Office underscored the need to protect the community from Hector’s ongoing criminal activity. The United States noted that Hector had more than 20 convictions, and his priors include multiple drug felonies, as well as numerous instances of gun violence. “Society prohibits felons from possessing firearms and ammunition for a reason, and the defendant’s violent history is a paradigmatic example of why such laws exist. The defendant has proven through his conduct that he will readily use firearms for illegal and violence purposes. . . . [T]he seriousness of the defendant’s conduct is compounded by the fact that he possessed firearms while also possessing fentanyl with the intent to distribute it. The dangers of fentanyl are well known, and the distribution of this substance poses a great risk to the community.”U.S. Attorney Birge stated: “Drug trafficking and firearm offenses will be not be tolerated. My office and our federal, state, and local law enforcement partners will actively prosecute these cases to help make the Muskegon area a safer place.”
The charges in this case are the result of a joint investigation by the Muskegon Heights Police Department, the Michigan State Police, and the Bureau of Alcohol, Tobacco, and Firearms (ATF). The U.S. Attorney's Office, the Muskegon County Prosecutor's Office, and federal, state, and local law enforcement are working closely together to combat violent crime and drug trafficking in the Muskegon area.
END
Man Who Carried Child Pornography Across U.S.-Canada Border Sentenced to 20 Years in Federal PrisonRead the Press Release
MARQUETTE, MICHIGAN — United States Attorney Andrew Birge announced today that Jason Harry Bishop was sentenced to 240 months (20 years) in federal prison by Chief U.S. District Judge Robert J. Jonker for transporting child pornography from Sault St. Marie, Michigan to Sault Ste. Marie, Ontario, Canada. Judge Jonker also sentenced Bishop to serve 10 years of supervision following his release from prison, pay a $40,000 fine, and pay $5,100 in special assessments.
On January 27, 2017, Bishop crossed the U.S.-Canada border at Sault St. Marie. While crossing, Canada Border Services Agency (CBSA) became suspicious and sent Bishop for a secondary inspection. During the secondary inspection, CBSA located several photos of child pornography.
CBSA forwarded Bishop’s electronic devices to the U.S. Department of Homeland Security Investigations (HSI), which recovered child pornography and the following images Bishop took of himself:
Picture of Jason Bishop with I Love Child Porn sign Picture of Jason Bishop wearing shirt I Am A Child MolesterA review of Bishop’s criminal history uncovered that he solicited sex with underage children on at least three prior occasions.
"Today's significant prison term against a convicted child predator should serve as a clear warning for those who target and prey on children," said Steve Francis, special agent in charge for HSI Detroit. "The aggressive investigation and prosecution of child predators remains among HSI's highest priorities."
This case was prosecuted by Assistant U.S. Attorneys Paul Lochner and Davin Reust as 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.
END
Lansing Man Sentenced to More Than 13 Years in Prison for International Identity Theft and Tax Refund Fraud SchemeRead the Press Release
GRAND RAPIDS, MICHIGAN — On Tuesday, January 29, 2019, Chief U.S. District Judge Robert J. Jonker sentenced Oghenevwakpo Igboba to a total of 162 months’ in federal prison to be followed by three years’ supervised release, $514,823 in restitution, a money judgment of $48,205, and $1800 in court assessments.
In September 2018, a jury found Igboba guilty of one count of conspiracy to defraud the United States, one count of wire fraud, eight counts of making a false claim to the United States, and eight counts of aggravated identity theft. Igboba used other individuals’ personally identifying information to access tax information using an Internal Revenue Service website. He then took that sensitive tax and personal information and used it to file false federal income tax returns directing the IRS to pay fraudulent refunds to bank accounts he controlled.
"My office will seek appropriate punishment for those who undermine the functioning of Internal Revenue Service systems and steal refunds owed to other hard-working Americans," said U.S. Attorney Andrew Byerly Birge. "This crime harms the individual tax payers whose identities were stolen in connection with the fraud, but it also harms all Americans who place their trust in the proper functioning of the tax system and expect an orderly and prompt payment of tax refunds. This defendant stole from all of us."
By filing Form 1040s before the real taxpayers, Igboba managed to direct hundreds of thousands of dollars to himself. IRS systems stopped many of the stolen returns from being issued, but Igboba personally received at least $57,000 as a result of his crime. He used personally identifying information to access tax information for more than 100 individuals through IRS systems. The evidence introduced at trial demonstrated that the defendant conspired with numerous individuals, both in the United States and abroad, to compile personal information and direct the tax returns to numerous bank accounts.
"The defendant’s theft of hundreds of tax transcripts from the IRS in furtherance of a scheme to enrich himself at the expense of the American people is a grave violation of federal law and cannot be tolerated under any circumstances," said J. Russell George, Treasury Inspector General for Tax Administration. "I am proud of our investigators, including those in our cybercrimes division, for cracking this case, their counterparts at IRS Criminal Investigation, and the U.S. Attorney’s office for helping us bring this individual to justice."
Special Agent in Charge Manny Muriel, IRS - Criminal Investigation, stated, "This sentencing demonstrates that combating identity theft remains a priority for the IRS. IRS will not tolerate stealing the identities of innocent taxpayers. Stealing from the government and its taxpayers is not acceptable and with the start of the tax filing season, you can rest assured that IRS will be vigilant and work to protect taxpayers’ identities this tax season."
The case was investigated by the Treasury Inspector General for Tax Administration (TIGTA) and IRS - Criminal Investigation. Assistant United States Attorneys Sally J. Berens and Christopher M. O’Connor prosecuted the case.
END
Michigan Residents Arrested for Conspiracy to Provide Material Support to ISISRead the Press Release
Three residents of Lansing, Michigan, were arrested without incident Monday afternoon for conspiring to provide material support to a designated foreign terrorist organization, namely the Islamic State of Iraq and al-Sham (ISIS). The U.S. Attorney’s Office for the Western District of Michigan charged all three in a criminal complaint filed today in U.S. District Court in Grand Rapids, Michigan. The conspiracy charge is punishable by up to 20 years in federal prison.
Members of the FBI Joint Terrorism Task Force (JTTF) arrested Muse Abdikadir Muse (Muse Muse) at the Gerald R. Ford Airport in Grand Rapids, Michigan, after checking in for a flight to the first of a series of destinations on his way to Mogadishu, Somalia. Shortly thereafter, law enforcement arrested alleged coconspirators Mohamud Abdikadir Muse (Mohamud Muse), and Mohamed Salat Haji (Haji). All three defendants are naturalized U.S. citizens who were born in Kenya.
According to the complaint affidavit, Muse Muse purchased airline tickets earlier this month to travel from Grand Rapids to Mogadishu, departing on Monday, January 21, 2019. Among other support, the complaint alleged Haji and Mohamud Muse aided in the purchase of the ticket and drove Muse Muse to the Grand Rapids airport, each knowing the true purpose of the travel was for Muse Muse to join and fight for ISIS.
The complaint asserts that all three defendants pledged allegiance to ISIS through videos they recorded themselves. Muse Muse and Haji allegedly discussed with each other their desire to join ISIS, to kill non-believers, and even to potentially use a car for a martyrdom operation to run down non-believers here in the United States if they could not travel overseas to fight for ISIS. Following the arrests, federal agents executed search warrants at a residence shared by Mohamud Muse and Muse Muse.
Assistant Attorney General for National Security John C. Demers, Andrew B. Birge, U.S. Attorney for the Western District of Michigan, and Tim Slater, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Division, announced the arrests.
The public is reminded that a complaint 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.
Lansing Residents Arrested for Conspiracy to Provide Material Support to ISISRead the Press Release
Grand Rapids, MI - Three residents of Lansing, Michigan, were arrested without incident Monday afternoon for conspiring to provide material support to a designated foreign terrorist organization, namely the Islamic State of Iraq and al-Sham (ISIS). The U.S. Attorney’s Office for the Western District of Michigan charged all three in a
criminal complaint unsealed today in U.S. District Court in Grand Rapids, Michigan. The conspiracy charge is punishable by up to 20 years in federal prison.Members of the FBI Joint Terrorism Task Force (JTTF) arrested MUSE ABDIKADIR MUSE (MUSE MUSE) at the Gerald R. Ford International Airport in Grand Rapids, Michigan, after he checked in for a flight to the first of a series of destinations on his way to Mogadishu, Somalia. Shortly thereafter, law enforcement arrested alleged coconspirators MOHAMUD ABDIKADIR MUSE (MOHAMUD MUSE), and MOHAMED SALAT HAJI (HAJI). MUSE MUSE and MOHAMUD MUSE are brothers and HAJI is a cousin. All three were born in Kenya. HAJI is a naturalized U.S. citizen and the brothers are derivative U.S. citizens, having received U.S. citizenship as minors through the naturalization of their parents.
According to the
complaint affidavit , MUSE MUSE purchased airline tickets earlier this month to travel from Grand Rapids to Mogadishu, departing on Monday, January 21, 2019. Among other support, the complaint alleged HAJI and MOHAMUD MUSE aided in the purchase of the ticket and drove MUSE MUSE to the Grand Rapids airport, each knowing the true purpose of the travel was for MUSE MUSE to join and fight for ISIS.The
complaint asserts that all three defendants pledged allegiance to ISIS through videos they recorded themselves. MUSE MUSE and HAJI allegedly discussed with each other their desire to join ISIS, kill non-believers and even to potentially use a car for a martyrdom operation to run down non-believers here in the United States if they could not travel overseas to fight for ISIS. Following the arrests, federal agents executed a search warrant at a residence in Lansing, Michigan, shared by MOHAMUD MUSE and MUSE MUSE.Assistant Attorney General for National Security John C. Demers, Andrew B. Birge, U.S. Attorney for the Western District of Michigan, and Tim Slater, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Division, announced the arrests.
The JTTF is comprised of agents and officers from area federal and state law enforcement agencies, including the FBI, Michigan State Police, Michigan State University Police Department, Kent County Sheriff’s Office, Eaton County Sheriff’s Office, Lansing and Grand Rapids Police Departments, U.S. Marshals Service, Lansing and Grand Rapids Airport Police and the Department of Homeland Security, specifically the Transportation Security Administration, Federal Air Marshals and Customs and Border Protection.
The defendants were scheduled to make their initial appearance in court today to hear the charges against them. They will remain in custody pending formal arraignment and a hearing on the government’s request that their detention continue until trial. The public is reminded that a complaint 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.
END
Mendon, Michigan Man Sentenced to 13 Months in Prison for Crop Insurance FraudRead the Press Release
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced today that Douglas Edward Diekman, 55, of Mendon, Michigan, was sentenced to 13 months in federal prison for committing crop insurance fraud. He was also ordered to serve two years of supervised release and pay $488,432.86 in restitution. U.S District Judge Paul Maloney imposed the sentence.
Diekman pled guilty to conspiring with Michael Stamp of Stamp Farms to defraud the federal crop insurance program. Diekman admitted that he illegally obtained crop insurance for approximately 1,000 acres of farmland he rented to Stamp Farms. Diekman did not farm the land and had no ownership interest in the crops. Nevertheless, he falsely certified that he had a 100% ownership interest in the crops and falsely certified that he had crop losses. When Stamp Farms declared bankruptcy and was unable to pay rent for the farmland, Diekman kept a crop insurance indemnity payment to which he was not entitled.
U.S. Attorney Birge said, "This office will continue to vigorously prosecute people like Mr. Diekman who defraud taxpayer-funded programs such as the federal crop insurance program."
Manny Muriel, Special Agent in Charge of the Detroit's IRS Criminal Investigation, stated, "IRS Special Agents and our Federal Law Enforcement partners will continue to work tirelessly to bring to justice those who attempt to defraud programs that are backed by taxpayer funds. We will not tolerate those cheating the system in efforts to deepen their own pockets at everyone else's expense."
The case was investigated by the United States Department of Agriculture, Office of Inspector General, with assistance from the Risk Management Agency’s Compliance Investigators, and the Internal Revenue Service-Criminal Investigation Division. Clay Stiffler handled the prosecution.
END
Chicago-Area Man Sentenced to 10 Years and 10 Months for Traveling to Coldwater and Robbing Cell Phone StoreRead the Press Release
GRAND RAPIDS, MICHIGAN - U.S. District Judge Gordon J. Quist sentenced Tramain Hill to 130 months in federal prison for committing an interstate cell phone store robbery with three other people. Hill was also ordered to repay $42,129.44 in restitution and serve 3 years under court supervision following release from prison.
On August 27, 2016, Hill and three associates met up in Kankakee, Illinois to prepare to rob a cell phone store. The crew had recently stolen a Mitsubishi Eclipse in Chicago, and they planned to use it as a getaway vehicle. On August 27, they loaded into the Eclipse and another car.
At approximately 6:50 PM, two of the crew entered a Universal Wireless store at 849 E. Chicago Street in Coldwater, Michigan. After entering, one robber pulled a gun, pointed it at the three employees and one customer present, and herded everyone to a back room. Once in the back room, the other robber bound everyone’s wrists and ankles with zip ties, stole the property of the employees and customer, and proceeded to steal approximately $40,000 in cell phones from the store. The robbers stashed their proceeds in a black trash bag and exited through the back door of the store. The robbers then traveled back to central Illinois, where they sold the cell phones to a fence.
To date, three of the four robbers have been prosecuted federally. Two of them are pending sentencing in the Central District of Illinois.
The Coldwater Police Department and Federal Bureau of Investigation investigated this case. Assistant United States Attorney Davin M. Reust prosecuted it.
END
Joseph Lee King Sentenced to 48 Months in Federal Prison for Domestic ViolenceRead the Press Release
GRAND RAPIDS, MICHIGAN – Joseph Lee King, 59, from Peshawbestown (Leelanau County), Michigan, was sentenced to 48 months in federal prison for Domestic Assault – Habitual Offender, U.S. Attorney Andrew Byerly Birge announced today. In addition to the prison term, U.S. District Judge Paul L. Maloney imposed a 2-year term of supervised release that will commence once King is released from imprisonment.
King pled guilty on July 26, 2018. He admitted that the assault occurred during an argument on the Grand Traverse Band of Ottawa and Chippewa Indians’ Reservation. King was subject to increased penalties under federal law because he had at least two prior convictions for domestic violence. The United States had jurisdiction over the case because it occurred in Indian Country.
In its sentencing memorandum, the U.S. Attorney’s Office noted "a witness observed the defendant grabbing the victim by the throat, practically lifting her off the ground by the neck, and then throwing her to the ground. Police observed bruising and discoloration on and around the victim’s neck." The United States sought a significant sentence because of King’s conduct, his long criminal history, and his pattern of offending against women. The United States noted that King had previously strangled or attempted to strangle his domestic partners. "Such conduct is extremely dangerous and poses great risk to its victims," the United States argued. In light of the facts that domestic violence often causes severe, ongoing harm to women and is a risk factor for future domestic homicide, the United States emphasized the need to protect the public and promote respect for the law.
The Grand Traverse Band Tribal Police Department and the Federal Bureau of Investigation (FBI) investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
END
District Court Issues Order to Prevent Michigan Company and its Owners from Distributing Adulterated Ready-To-Eat FoodsRead the Press Release
A federal court permanently enjoined a Saranac, Michigan company and its owners from preparing, processing, and distributing adulterated ready-to-eat food, the Department of Justice announced today.
In a complaint filed on November 29, 2018, at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that defendants Saranac Brand Foods, Inc., and the company’s owners, Dennis M. Nowak and Daniel R. Nowak, violated the Federal Food, Drug, and Cosmetic Act by introducing or delivering for introduction into interstate commerce ready-to-eat food that was adulterated. The complaint alleged that Saranac prepared and distributed approximately 35 different ready-to-eat foods, including prepared salads, dips, and sauces such as coleslaw, macaroni salad, spinach dip, and enchilada sauce.
“The Department of Justice is committed to ensuring that processors and distributors of ready-to-eat food products comply with laws designed to protect consumers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will continue to work with the FDA to ensure that consumers are protected from potentially unsafe food.”
“We all reasonably expect that ready-to-eat foods are, in fact, ready to eat — that they have been prepared in a clean environment and in a way that does not potentially expose the food to dangerous bacteria,” said U.S. Attorney Andrew B. Birge for the Western District of Michigan. “Saranac Brands fell short of that reasonable expectation, so the Department of Justice, including my office, put a stop to their practices.”
The complaint alleged that analysis of environmental samples collected from defendants’ facility during numerous inspections showed that the facility contained a resident strain of Listeria monocytogenes (L. mono). FDA most recently inspected the facility in late 2017. According to the complaint, FDA’s inspection established that the ready-to-eat food products that defendants manufactured and distributed were adulterated in that they have been prepared, packed or held under insanitary conditions whereby they may have become contaminated with filth or rendered injurious to health. As alleged in the complaint, FDA collected environmental sub-samples that tested positive for L. mono, and also observed that the flooring in defendants’ facility’s food processing area was in poor repair with exposed aggregate, chipped areas, ponded water and debris.
Defendants agreed to settle the complaint and be bound by a consent decree for permanent injunction. The consent decree entered by the United States District Court for the Western District of Michigan permanently enjoins the defendants from violating the Federal Food, Drug, and Cosmetic Act. As part of the settlement, defendants represented that they have discontinued all operations related to receiving, preparing, processing, holding, or distributing any articles of food at or from their business location and any other locations. Under the permanent injunction, if defendants intend to resume such activity, they must notify FDA in writing in advance, comply with specific remedial measures set forth in the injunction, and allow FDA to inspect their facility, including the buildings, sanitation-related systems, equipment, utensils, all articles of food, and relevant records.
“Taking steps to keep potentially unsafe food out of the U.S. food supply is a core responsibility of the FDA,” said Associate Commissioner for Regulatory Affairs Melinda K. Plaisier. “When a company fails to follow current good manufacturing practices and processes food under insanitary conditions, the FDA will take action to protect the public health and safety of Americans.”
Trial Attorney Claude Scott of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Ryan Cobb of the United States Attorney’s Office for the Western District of Michigan represented the United States, along with the assistance of Associate Chief Counsel Joshua Davenport of the Department of Health and Human Services’ Office of the General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Michigan, visit its website at https://www.justice.gov/usao-wdmi.
Western Michigan Man Receives 30 Months for Role in Dog-Fighting ConspiracyRead the Press Release
A Western Michigan man was sentenced in federal court to 30 months in prison for his role in a dog fighting conspiracy based in the surrounding counties of Grand Rapids. His sentence will be followed by three years of supervised release.
Charles Deon Davis Jr., 34, of Wyoming, Michigan, pleaded guilty in June 2018 to one felony count of conspiracy to sponsor and exhibit a dog in a dog fight and unlawful possession of dogs intended to be used for the purpose of dog fighting, and one felony count of felon in possession of a firearm and ammunition. The Justice Department’s Environment and Natural Resources Division and U.S. Attorney Andrew Byerly Birge of the Western District of Michigan made the announcement.
Davis and four co-defendants were indicted in a superseding indictment on April 18, 2018, for one conspiracy count and multiple counts of unlawful possession of animals intended to be used for the purpose of dog fighting. Davis was also indicted in a separate case for unlawful possession of a firearm and ammunition by a felon. Co-defendant Damiane Buehrer was sentenced to 46 months imprisonment in October 2018. The remaining co-defendants, including Charles Joseph Miller, Kian Maliak Miller, and Jarvis Jason-Roy Askew, have pleaded guilty and are awaiting sentencing.
Between at least December 2016 and December 7, 2017, Davis co-owned and operated, with defendant Charles Miller, “Stick Wit Me Kennels,” for the purposes of breeding, training, conditioning, and developing dogs for participation in dog fighting. Davis kept four dogs for those purposes, which, together with those owned by his co-conspirators, for a total of 37 dogs, were seized by law enforcement as part of the investigation. Davis was also found to possess medication for the purpose of treating dogs for wounds received during dog fighting, as well as equipment for training the dogs, including a “break stick,” and “spring poles.” The co-defendants frequently exchanged electronic communications for the purpose of sharing information about training and conditioning dogs for fighting, breeding fighting dogs, contracting for and sponsoring dog fights, collecting forfeited funds when a contracted dog fight resulted in a forfeit, and sharing results of dog fights.
The government is represented by Assistant U.S. Attorneys Kate Zell and Hagen Frank, and Senior Trial Attorney Jennifer Blackwell of the Justice Department’s Environmental Crimes Section. The case is being investigated by the U.S. Department of Agriculture – Office of Inspector General, the Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, and Firearms, and the Ingham County Animal Control Office. The ASPCA assisted with the care of the dogs seized by federal law enforcement.
Davi Bailey Sentenced to Six and A Half Years for Witness RetaliationRead the Press Release
GRAND RAPIDS, MICHIGAN - U.S. District Judge Janet T. Neff sentenced Davi Sarah Bailey to six and a half years in prison for retaliating against a victim of child pornography pro-duction, along with the victim’s family. Judge Neff made clear that threatening and intimidating witnesses will not be tolerated in the Western District of Michigan: "It has to be known that it is just not acceptable to interfere with or retaliate against witnesses who come to court…. We simply cannot have any indication that witness intimidation or retaliation is acceptable under any circum-stance."
In June of 2018, a jury found the father of Bailey’s children (Michael Clayton) guilty of sex trafficking one minor girl and producing child pornography of three minor girls. You can read more about Clayton’s case here: https://www.justice.gov/usao-wdmi/pr/2018_1023_Clayton_Hernandez. For his crimes, Clayton received life in prison.
Throughout Clayton’s trial, Bailey threatened two of the victims of child pornography pro-duction. On the first day of trial, one of the victims testified, after which Bailey threatened to harm the girl. On the second day of trial, another victim testified, and Bailey threatened her too. Due to those threats, law enforcement accompanied the victims throughout the rest of the trial to ensure their safety. After trial concluded one evening, law enforcement found Bailey waiting in a parking lot by a victim’s vehicle.
After trial, Bailey threatened to beat up the sister of one of the victims, based on the vic-tim’s testimony:
Picture of Davi Facebook post
The threat affected the victim of Clayton’s child pornography production, who stopped attending school, quit her job, and frequently refused to leave her family’s home.While sentencing Bailey, Judge Neff remarked, "words can be very blunt instruments. Es-pecially here, where they victimized people who had already been victimized before."
The Battle Creek Police Department and Department of Homeland Security Investigations investigated this case. Assistant United States Attorney Davin M. Reust prosecuted it.
END
Fraudulent Tax Preparer Sentenced to PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – Faheem Olugbodi, also known as Faheem Abdul Nichols and James Moore, 48, of Grand Rapids, Michigan, was sentenced to 3 and ½ years in federal prison, U.S. Attorney Andrew Birge announced today. Olugbodi pled guilty to conversion of government property for preparing fraudulent tax returns from 2011 through 2013. In his plea agreement, Olugbodi admitted collecting personal information from taxpayers and then reporting false income listed as household employment in order to generate tax refunds based on the Earned Income Tax Credit. Olugbodi acknowledged that he obtained $1,827,450.00 by filing approximately 322 fraudulent tax returns. At the sentencing hearing, the evidence showed that Olugbodi utilized multiple bank accounts, including one in the name of local mosque Baitul Shukur to conceal his fraud scheme.
United States District Judge Gordon Quist directed that Olugbodi pay $1,827.450.00 in restitution and ordered two years of supervised release following the prison term. In imposing the sentence, Judge Quist remarked that there is both "a social cost as well as a financial cost" to such fraud schemes which appear to be on the rise in this district.
"Tax preparers who abuse the Earned Income Tax Credit are just engaged in theft by another name. My office will continue to work closely with IRS Criminal Investigation to limit theft from the U.S. Treasury and to punish those who obtain monies through fraudulent tax filings," said U.S. Attorney Birge. "As the tax filing season approaches, I strongly encourage taxpayers to be wary of utilizing unregistered tax preparers who promise guaranteed refunds. Taxpayers should make sure to get copies of any tax return prepared on their behalf and be sure that all the information, including income and any dependents that are listed, is correct."
Manny Muriel, Special Agent in Charge of the Detroit’s IRS Criminal Investigation, stated, "As stewards of the American taxpayer’s dollars, IRS-CI special agents will act as guardians to protect against tax fraud, particularly when it is a tax preparer who commits the fraud. IRS and in particular Criminal Investigations must protect the integrity of the U.S. tax system.
The case was investigated by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Raymond E. Beckering III handled the prosecution.
END
Drug Dealer Found Guilty of Distributing Fentanyl Causing Death of Veteran in KalamazooRead the Press Release
Deondray Christopher Abrams now faces a mandatory sentence of life in prison
GRAND RAPIDS, MICHIGAN — Yesterday evening, a jury in federal district court in Kalamazoo found Deondray Christopher Abrams guilty of distributing fentanyl on March 21, 2017, which resulted in the death of Brandon Jay Demko, a Marine Corps veteran of Iraq and Afghanistan suffering from severe PTSD. Due to Abrams’ prior conviction, this offense carries a statutory mandatory term of life in prison. Abrams is scheduled to be sentenced on April 8, 2018.
Abrams, 26, of Kalamazoo, sold fentanyl on March 21, 2017, as heroin. Fentanyl is at least 40 times more powerful than heroin. Brandon Demko used the fentanyl believing it to be heroin. He became unconscious and ultimately died. In response to a 911 call, Kalamazoo Department of Public Safety officers and LIFE EMS paramedics tried diligently to revive Mr. Demko but were unsuccessful. Officer John Khillah, with the Kalamazoo Department of Public Safety and the Kalamazoo Valley Enforcement Team, conducted the investigation into the source of the fentanyl. After a two day-long trial, the federal jury convicted Abrams of distributing the fentanyl that killed Mr. Demko.
U.S. Attorney Andrew Birge warned: "Fentanyl is increasingly available in Western Michigan. Drug dealers are mixing fentanyl with heroin and, as in this case, selling fentanyl as heroin. Fentanyl is so much more powerful than heroin that opioid deaths have risen in the past few years. The U.S. Attorney’s Office will continue to aggressively prosecute opioid drug dealers whose product results in death."
"We have seen a dramatic increase in the number of opioid related overdoses recently. The combined state and federal efforts has brought closure to this case. We hope that this outcome will deter people from using or dealing these deadly substances," said Executive Lt. Mike Kelley of the Kalamazoo Valley Enforcement Team and COPS Division Commander.
This case was prosecuted by Assistant U.S. Attorneys Austin J. Hakes and B. Rene Shekmer. Prosecution would not have been possible without the combined assistance of the Kalamazoo Department of Public Safety, the Kalamazoo Valley Enforcement Team, the Kalamazoo County Medical Examiner’s Office, the Michigan State Police, the Kalamazoo County Prosecuting Attorney’s Office, and the Drug Enforcement Administration.
END
Ringleader of Florida-Based Identity Theft Scheme Sentenced to 78 Months in Federal PrisonRead the Press Release
Last of Ten Defendants Sentenced in Scheme That Involved Installing Card- Skimming Devices in Gas-Pumps, Creating Cloned Credit Cards Using Captured Account Numbers, and Using Cloned Cards to Bulk-Buy Prepaid Cards at Meijer Branches Throughout the Greater Grand Rapids, Kalamazoo and Lansing Areas
GRAND RAPIDS, MICHIGAN — Guillermo Rodriguez, 45, of Miami, Florida, was sentenced to serve 78 months in the Federal Bureau of Prisons for leading a wire-fraud and identity-theft conspiracy that operated between Florida and Michigan for several months during 2015, U.S. Attorney Andrew Birge announced today.
Rodriguez is the last of a total of 10 defendants sentenced in the course of a long-running investigation that was led by the U.S. Attorney’s Office and the Lansing office of the FBI’s Detroit Division, and that resulted in three related cases that were prosecuted in U.S. District Court in Grand Rapids. In addition to Rodriguez, the following defendants, all of whom were residents of the Miami, Florida, area, received lesser prison sentences based on their varying roles in the scheme and whether they cooperated with investigators after their arrests: Yunier Cudello-Albelo, 33, was sentenced to serve 69 months; Yaimari Gonzalez-Santos, 39, was sentenced to serve 12 months; Juan Ledesma, 27, was sentenced to serve 63 months; Elisabe Hernandez-Perez, 46, was sentenced to serve 12 months; Yoel Alfonso, 39, was sentenced to time-served in pretrial detention; Dunieski Gutierrez, 41, was sentenced to serve five months; Jesus Carrazana, 45, was sentenced to serve six months; Isabel Tiedemann, 29, was sentenced to time-served in pretrial detention; and Yimi Garcia-Rodriguez, 29, was sentenced to serve 24 months.
"This is the second gas-pump skimmer scheme my Office has prosecuted over the last few years," stated U.S. Attorney Birge. The first involved a group operating out of Austin, Texas, and resulted in seven convictions and a prison sentence of over 12 years for its leader, Antonio Dejesus Perez-Martinez. "This second investigation and series of prosecutions should send a second strong message to any group that might contemplate coming into West Michigan to carry out this scheme that we are ready, willing, and able to federally prosecute every member of that group. If a criminal is bound and determined to commit gas-pump identity theft, West Michigan is definitely not the place they want to try it."
"The crime of identity theft and the scams associated with it have become more sophisticated and pervasive. These individuals thought they could target victims around the country with impunity," said Timothy R. Slater, Special Agent in Charge of the FBI’s Detroit Division. "The FBI, along with our federal, state and local partners, is dedicated to stopping these perpetrators and educating the public so that citizens do not fall victim to these schemes."
The United States was represented by Assistant U.S. Attorney Hagen W. Frank. The case was investigated primarily by the Federal Bureau of Investigation, with assistance from the Ingham County Sheriff’s Office, the Eaton County Sheriff’s Office, the Grand Rapids Metropolitan Fraud and Identity Theft Team, the Michigan State Police, the Unites States Postal Service, and the Michigan Department of Weights and Measures (which has regulatory responsibility over commercial gas pumps). Employees of Meijer Theft Protection Services also provided valuable assistance.
END
Serial Robbers Sentenced to PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – Shaun Michael Cook, 31, of Lansing, Michigan, was sentenced to 102 months in federal prison for his role in a series of Lansing area robberies, U.S. Attorney Andrew Birge announced today. Cook and his codefendants, Donald Charles Westmoreland and Shackeem Louis Jones, committed a series of armed robberies of various businesses in the Lansing metropolitan area from November 2016 through May 2017. Cook, Jones and Westmoreland each pleaded guilty earlier this year to interference with commerce by robbery and brandishing a firearm. United States District Judge Janet T. Neff, who sentenced Cook, sentenced Westmoreland to 87 months in prison and Jones to 96 months. She ordered Cook to pay $2,139.21 in restitution and Jones and Westmoreland to pay $4,739.21.
"Reducing violent crime rates is a priority for this office as well as the Department of Justice," said U.S. Attorney Andrew Birge. "Repeated violent behavior involving firearms will be met with increased law enforcement attention, swift justice, and severe punishment."
During most of these robberies, two of the men would enter a business, point a gun at the employees and customers, demand money, and order everyone to the ground. During some of the robberies, the men destroyed the businesses’ telephones or stole cell phones from employees in order to prevent calls for help. At sentencing, Judge Neff attributed the following robberies to this group (all occurred in the Lansing area unless otherwise indicated):
• November 16, 2016: Cook and Jones robbed a Subway restaurant on Saginaw Highway;
• December 18, 2016: Cook, Jones, and Westmoreland robbed a Subway restaurant on Larch Street;
• December 24, 2016: Cook and Jones robbed a Subway restaurant on Grand River Avenue;
• December 27, 2016: Cook, Jones, and Westmoreland robbed a Beauty Max beauty supply store on West Saginaw Highway;
• December 27, 2016: Cook, Jones, and Westmoreland robbed a Citgo Gas Station near Wildwood Avenue in the Jackson, Michigan area;
• December 28, 2016: Cook, Jones, and Westmoreland robbed a Subway on East Saginaw Highway;
• December 29, 2016: Jones and Westmoreland robbed a Biggby coffee shop on Elmwood Road;
• January 10, 2017: Jones and Westmoreland robbed a Subway on East Lake Lansing Road;
• January 23, 2018: Jones and Westmoreland robbed a Family Dollar store on South Pennsylvania Avenue;
• March 13, 2017: Jones and Westmoreland robbed an Admiral gas station on West Saginaw Highway;
• March 15, 2017: Jones and Westmoreland robbed a Quality Dairy convenience store on Waverly Road;
• March 27, 2017: Jones and Westmoreland robbed a Little Caesars pizzeria on East Grand River;
• April 27, 2017: Jones robbed a Jimmy John’s restaurant on East Grand River Avenue; and
• May 1, 2017: Jones robbed a Little Caesar’s pizzeria on East Grand River Avenue.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Eaton County Sheriff’s Office, the Lansing Police Department, the Lansing Township Police Department, the Meridian Township Police Department, and the Michigan State Police. Assistant U.S. Attorney Alexis M. Sanford handled the prosecution.
END
New DEA Office in Traverse City, MichiganRead the Press Release
Partnership with the Michigan State Police
DETROIT – On Monday, November 19, 2018, the U.S. Drug Enforcement Administration (DEA), Detroit Field Division, announced the opening of the Traverse City Post of Duty. This new post of duty will allow the DEA to better serve Michigan by identifying, disrupting and dismantling drug trafficking organizations and their subsidiary organizations operating in the northern Michigan area. Also announced, was the DEA’s partnership with the Michigan State Police Traverse Narcotics Team (T.N.T.).
The DEA currently has 222 domestic offices in 23 Divisions throughout the United States, and 90 foreign offices in 69 countries. Today’s announcement will mark the 223rd domestic office, located in Traverse City, Michigan. The Traverse City Post of Duty is the seventh DEA office in Michigan and will be overseen by an Assistant Special Agent in Charge in Grand Rapids, and ultimately the Detroit Division Office.
The full-time presence of DEA personnel in northern Michigan will enhance partnerships with law enforcement agencies throughout the region and increase the service we provide to our communities. Personnel assigned to the DEA Traverse City Post of Duty will coordinate with Federal, state and local investigators to identify, disrupt, dismantle, and prosecute transnational criminal organizations, violent drug trafficking organizations, firearms trafficking organizations, and their subsidiary organizations, which operate throughout northern Michigan, the United States, and the world.
The DEA also announced the partnership with the Michigan State Police Traverse Narcotics Team (T.N.T.), which consists of the Michigan State Police; Homeland Security Investigations (HSI); the Internal Revenue Service (IRS); Leelanau County Sheriff’s Office; Antrim County Sheriff’s Office; Benzie County Sheriff’s Office; Grand Traverse County Sheriff’s Office; Kalkaska County Sheriff’s Office; Wexford County Sheriff’s Office; Missaukee County Sheriff’s Office; Osceola County Sheriff’s Office; Traverse City Police and the Army National Guard, collaborating to combat drug trafficking and vice-related crimes. This long-term collaboration with the Traverse Narcotics Team will provide Federal resources to northern Michigan law enforcement agencies, including training and reimbursements for investigative expenses and overtime. In addition, law enforcement agencies will be able to share intelligence that benefits investigations around the globe, as well as those in our own backyard. The Traverse City Post of Duty is co1located with the Michigan State Police Traverse Narcotics Team.
“The current opioid epidemic is a priority for DEA, however, this partnership allows us to adapt to any future drug threat facing northern Michigan,” said DEA Special Agent in Charge Timothy Plancon. “We will leverage the full resources of the DEA and our partners to ensure drug traffickers are aware that their criminal actions will not be tolerated.”
The objective of the DEA is simple, bringing those individuals who violate Federal drug laws to justice. The incredible work our agents and officers perform on a daily basis is tough and vital to the safety and quality of life for those living and visiting northern Michigan.
END
Grand Ledge Man Pleads Guilty to Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN — Kevin Scott Konen, 52, of Grand Ledge, Michigan, pleaded guilty to sexual exploitation and attempted sexual exploitation of children, and possession of child pornography, U.S. Attorney Andrew Birge announced today. Sentencing before U.S. District Judge Gordon J. Quist has yet to be scheduled. At sentencing, Konen will face a mandatory minimum of 15 years’ imprisonment and a combined maximum of 40 years’ imprisonment, restitution, fines, and other penalties.
Konen used various persona and schemes on social media to cause and attempt to cause minors to take sexually explicit images of themselves. Konen used the alias "Jenny Mays" on Facebook and other social media and pretended to be a high school girl and befriended girls and boys. Using the "Jenny Mays" alias, Konen manipulated minors and then encouraged them to take sexually explicit images of themselves. Konen also used the alias of "Alyssa Pietrzak" to contact minors. Using this persona, Konen aggressively extorted minors and demanded that they send him sexual images or "Alyssa Pietrzak" would send compromising pictures to the victim’s family and friends. Another ruse involved directing the victims to contact "Denny Ha" who could help the victims remove their pictures from internet websites, but to do so "Denny Ha" needed user names and passwords for their accounts. Once he had access to the accounts, Konen would search the victims’ accounts for compromising pictures.
Konen operated this scheme from 2011 to 2018 and had communications with numerous minors in Eaton County, Michigan, and others outside the state. Persons who believe that they or someone they know may have been a victim of this scheme should call the FBI at (313) 965- 4540.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, the Internet Crimes Against Children task force (ICAC), federal, tribal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.
This case is being investigated by the FBI, Michigan State Police, and the Grand Ledge Police Department and prosecuted by Assistant U.S. Attorney Daniel Mekaru.
END
Members of Venezuelan Crime Syndicate Sentenced for Multistate ATM "Jackpotting" SchemeRead the Press Release
Christian Zerpa-Ruiz and Ragde Pinto-Coronado Stole From Bank and Credit Union ATMs By Infecting Them With Malicious Software That Forced the ATMs to Dispense Cash
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Christian Eduardo Zerpa-Ruiz, 32, and Ragde Hussein Pinto-Coronado, 24, both of Venezuela, were sentenced to federal prison for conspiracy to commit bank larceny. Zerpa-Ruiz was sentenced to 51 months in prison, Pinto-Coronado was sentenced to 15 months in prison, and both were ordered to pay restitution. U.S District Judge Janet T. Neff imposed the sentences.
Zerpa-Ruiz and Pinto-Coronado are members of a Venezuelan crime syndicate who, in a sophisticated hacking scheme known as "jackpotting," robbed bank and credit union automated teller machines by infecting their hard drives with malware that allowed them to take command of the machines and force them to dispense all the cash they contained in a relatively short period of time – somewhat like hitting a jackpot on a casino slot machine. This type of crime was first reported in the United States in January 2018.
Zerpa-Ruiz and Pinto-Coronado successfully jackpotted four ATMs in Indiana, Kentucky, and Wisconsin, and stole approximately $125,000 in cash. They were arrested on March 15, 2018, while attempting to jackpot an ATM in St. Joseph, Michigan containing more than $43,000. Pinto- Coronado is in the United States illegally. Zerpa-Ruiz came to the United States on a tourist visa in late January 2018, and began jackpotting in February 2018.
In imposing the sentences, Judge Neff characterized the crime as a "chillingly sophisticated" use of technology that "strikes at the integrity of the financial system of the entire country." She said she was "astounded" and "troubled" that Zerpa-Ruiz and Pinto-Coronado were able to "come into the country and attack the financial system in this way."
"Criminals continue to exploit new types of technology to attack our nation’s financial institutions," Birge said. "But one thing remains the same: they will be caught, and they will go to prison. We will vigorously prosecute these cases, and continue to work with law enforcement to develop countermeasures to prevent these types of crimes in the future."
"Today’s sentencings demonstrate that attempts to attack our nation’s financial systems through technological exploitation will be met by the full force of federal law enforcement," said Timothy R. Slater, Special Agent in Charge, Detroit Division of the FBI. "The FBI and our law enforcement partners will continue to protect the integrity of our banking institutions against schemes to compromise it, and bring to justice those who perpetrate these crimes."
"This case demonstrates the Secret Service’s commitment to ensure the integrity of our nation’s financial infrastructure by collaborating with our local and federal partners to aggressively pursue those who commit these types of crimes," said Steve McMahon, the Resident Agent in Charge of the Secret Service’s Grand Rapids field office.
The case was investigated by the Federal Bureau of Investigation, United States Secret Service, and the St. Joseph Township Police Department. Assistant U.S. Attorney Clay Stiffler handled the prosecution.
END
Statement of United States Attorneys Matthew Schneider and Andrew Birge Regarding the Passage of Proposal OneRead the Press Release
The people of Michigan have voted to legalize – with certain restrictions – the possession, use, and distribution of marijuana under state law. However, marijuana continues to be an illegal drug under federal law. As the chief federal law enforcement officers in Michigan, we are providing this statement regarding the enforcement of federal marijuana laws in light of the passage of Proposal One.
Because we have taken oaths to protect and defend the Constitution and the laws of the United States, we will not unilaterally immunize anyone from prosecution for violating federal laws simply because of the passage of Proposal One.
We will continue to approach the investigation and prosecution of marijuana crimes as we do with any other crime. We will consider the federal law enforcement priorities set by the United States Department of Justice, the seriousness of the crime, the deterrent effect of prosecution, and the cumulative impact of the crime on a community. As we weigh the interests in enforcing a law, we must also consider our ability to prosecute with our limited resources.
Combating illegal drugs is just one of our many priorities. We are also focused on preventing and prosecuting terrorism, violent crime, gangs, corruption, and fraud. Even within the area of drugs, we are increasingly focused on combating the opioid epidemic, which is killing our citizens at an alarming rate.
Our offices have never focused on the prosecution of marijuana users or low-level offenders, unless aggravating factors are present. That will not change. Nevertheless, crimes involving marijuana can pose serious risks and harm to a community. The seriousness of the offense and impact on a community includes a broad range of related activity and concerns for federal law enforcement. These concerns include, for example: adverse effects of interstate trafficking of marijuana; the involvement of other illegal drugs or illegal activity; persons with criminal records; the presence of firearms or violence; criminal enterprises, gangs, and cartels; the bypassing of local laws and regulations; the potential for environmental contamination; and the risks to minors. We, of course, also have an interest in preventing the cultivation, use and distribution of marijuana on federal property.
These are just examples, and this statement does not limit our discretion to enforce the law. We will continue to work closely with our federal, state, local, and tribal law enforcement partners to assess the federal law enforcement interest for every case as it comes in. When we act, we will act in the interests of public health and safety.
END
Final Defendant in Staged Automobile Accident Insurance Fraud Conspiracy SentencedRead the Press Release
Marvin David Ramirez Sent to Prison for his Role in the Fraud at the Primary Rehab Center in Wyoming, Michigan
GRAND RAPIDS, MICHIGAN — Marvin David Ramirez, 45, of Grand Rapids, Michigan, was sentenced to prison in federal court yesterday. Ramirez pled guilty in June of this year to conspiracy to commit mail fraud related to a staged automobile accident ring that operated at Primary Rehab Center in Wyoming. United States District Judge Paul L. Maloney sentenced Ramirez to 37 months in prison. When imposing the sentence, Judge Maloney commented that "Michigan residents pay some of the highest auto insurance rates in the country and fraud schemes like the present case contribute significantly to these high premiums." The court also ordered Ramirez to pay restitution of $298,992.29 to the automobile insurance companies that he defrauded.
"Ramirez and his cohorts operated a sophisticated scheme over several years in our community," stated U.S. Attorney Andrew Byerly Birge. "The well-deserved sentence imposed by the court reflects the leadership role played by Ramirez and the fact that he greatly profited from this fraud at the expense of Michigan’s automobile insurance system."
The staged automobile accident ring operated at Primary Rehab from December 2011 to May 2014. The ring recruited and paid cash to individuals to stage automobile accidents and obtain police reports so that insurance claims could be made with their automobile insurance companies. The managers of the clinics and others working with them then told the accident participants what symptoms to present to physicians affiliated with the ring so that they would sign a prescription for physical therapy. The accident participants then sought unnecessary therapy treatment at the clinics. Typically, after a few therapy sessions, the accident participants signed blank therapy treatment forms that were later signed by massage therapists to make it appear as if the accident participants obtained treatment when they truly did not. The therapy clinics then used the treatment forms to send false insurance claims through the United States mail to automobile insurance companies for therapy treatment that was either not necessary or not actually provided. The clinic billed automobile insurers over $1,000,000.00, and obtained fraudulent payments in excess of $600,000.00.
"Elaborate insurance fraud schemes like the one perpetrated in this case disrupt the economy and cause law-abiding citizens to pay more for their coverage," said HSI Special Agent in Charge Steve Francis. "HSI is committed to working with our law enforcement partners to bring down organized criminals that have no concern for the law or their affected victims."
"These defendants engaged in conduct that drives up insurance rates and health care costs," said Timothy Slater, Special Agent in Charge, Detroit Division of the FBI. "The FBI remains committed to working alongside our partners at Homeland Security Investigations and the U.S. Attorney’s Office to ensure that individuals who engage in this type of fraudulent conduct are brought to justice."
Three other individuals were also convicted and sentenced in conjunction with the staged auto accident insurance fraud scheme at Primary Rehab Center:
• Maria Del Carmen Ramirez-Rodriguez, 64, Wyoming, Michigan, part-owner of Primary Rehab (40 months’ imprisonment)
• Alder Hernandez, 45, Tampa, Florida, part-owner of Primary Rehab (37 months’ imprisonment)
• Osvaldo Rivas-Martinez, 46, Port Richey, Florida, patient-recruiter for Primary Rehab (3 years’ probation)
The sentencing of Marvin Ramirez completes a multi-year prosecution of individuals in West Michigan engaged in defrauding Michigan automobile insurers. Previously sentenced for their roles at three other clinics, Revive Therapy, Renue Therapy, and H&H Rehab, were:
• Belkis Soca-Fernandez, 58, Tampa, Florida, part-owner of Revive Therapy and Renue Therapy (135 months’ imprisonment)
• David Sosa-Baladron, 43, Tampa, Florida, part-owner of Revive Therapy and Renue Therapy (120 months’ imprisonment)
• Antonio Ramon Martinez-Lopez, 35, Tampa, Florida, manager of Revive Therapy (87 months’ imprisonment)
• Gustavo Acuna-Rosa, 30, Versailles, Kentucky, manager of Renue Therapy (32 months’ imprisonment)
• Yoisler Herrera-Enriquez, 31,Wyoming,Michigan, manager and massage therapist, H&H Rehab (57 months’ imprisonment)
• Eduardo Pardo-Oiz, 35, Nashville, Tennessee, recruiter and accident participant (2months’ imprisonment)
• Dolis Rojas-Lopez, 31, Wyoming, Michigan, recruiter and accident participant (3 years’ probation)
• Yosvany Gonzalez-Duran, 42, Lansing, Michigan, recruiter and accident participant (1 year probation)
The Department of Homeland Security, Homeland Security Investigations, and the Federal Bureau of Investigation, in Grand Rapids, Michigan, conducted the investigation of the case. Assistant United States Attorneys Ronald M. Stella and Timothy VerHey handled the prosecution.
END
Michigan Man Sentenced to 46 Months in Prison for Dog Fighting ConspiracyRead the Press Release
Damiane Buehrer, 40, of North Adams, Michigan, was sentenced to 46 months in prison for his role in a dog fighting conspiracy based in the surrounding counties of Grand Rapids, Michigan, by U.S. District Court Judge Paul L. Maloney yesterday. His prison term will be followed by three years of supervised release.
Buehrer pleaded guilty in June 2018 to one felony count of conspiracy to sponsor and exhibit a dog in a dog fight and unlawful possession of dogs intended to be used for the purpose of dog fighting. The Justice Department’s Environment and Natural Resources Division and U.S. Attorney Andrew Byerly Birge of the Western District of Michigan made the announcement.
“Damiane Buehrer and his codefendants participated in a sick and brutal underground activity that, because of its interstate and international nature, is subject to Federal criminal jurisdiction” stated U.S. Attorney Birge. “Because of the uniquely barbarous and cruel nature of this activity, my Office, along with the rest of the West Michigan law-enforcement community, is committed to investigating, punishing and deterring criminals like Buehrer and his coconspirators.”
Buehrer and four co-defendants were indicted in a superseding indictment on April 18, 2018, for one conspiracy count and multiple counts of unlawful possession of animals intended to be used for the purpose of dog fighting. The remaining co-defendants, including Charles Joseph Miller, Kian Maliak Miller, Charles Deon Davis Jr., and Jarvis Jason-Roy Askew, have pleaded guilty and are awaiting sentencing.
Between November 14, 2016, and December 7, 2017, as part of the conspiracy, Buehrer acquired and kept four dogs for the purposes of breeding, training, conditioning, and developing dogs for participation in dog fighting. The dogs, together with those owned by his co-conspirators, for a total of 37 dogs, were seized by law enforcement as part of the investigation. Buehrer was also found to possess medication for the purpose of treating dogs for wounds received during dog fighting, as well as equipment for training the dogs, including treadmills, weighted chains, break sticks, spring cables, flirt poles, and a jenny mill. The co-defendants frequently exchanged electronic communications for the purpose of sharing information about training and conditioning dogs for fighting, breeding fighting dogs, contracting for and sponsoring dog fights, collecting forfeited funds when a contracted dog fight resulted in a forfeit, and sharing results of dog fights.
The government is represented by Assistant U.S. Attorneys Kate Zell and Hagen Frank, and Senior Trial Attorney Jennifer Blackwell of the Justice Department’s Environmental Crimes Section. The case is being investigated by the U.S. Department of Agriculture – Office of Inspector General, the Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, and Firearms, and the Ingham County Animal Control Office. The ASPCA assisted with the care of the dogs seized by federal law enforcement.
Dog-Fighter Damiane Buehrer Gets 46 Months in Federal PrisonRead the Press Release
Buehrer, A West Michigan Resident, Continued to Participate in Underground Pit Bull Terrier Fighting Even After Serving State Prison Time for Dog-Fighting Offense
GRAND RAPIDS, MICHIGAN - Damiane Buehrer, 40, of Jonesville, Michigan, was sentenced yesterday to serve 46 months in the Federal Bureau of Prisons for participating in a dog-fighting conspiracy between November 2016 and December 2017. The Justice Department’s Environment and Natural Resources Division and U.S. Attorney Andrew B. Birge of the Western District of Michigan made the announcement.
Buehrer and four co-defendants were indicted on April 18, 2018, for conspiracy and for unlawfully possessing animals to use in dog fighting, along with equipment to train and condition them for fighting. The remaining co-defendants, including Charles Joseph Miller, Kian Maliak Miller, Charles Deon Davis, Jr., and Jarvis Jason-Roy Askew, have pled guilty and are awaiting sentencing. Buehrer was convicted in State court in 2010, under Michigan’s animal-fighting statute.
Between November 14, 2016, and December 7, 2017, as part of the conspiracy, Buehrer—who had just been released from the Michigan Department of Corrections in August 2015 after serving a five-year-sentence for the same activity—acquired and possessed four dogs for the purposes of breeding, training, conditioning, and developing them to fight other dogs for prize money in underground and illegal contests that routinely result in dogs being wounded, maimed, and killed. Buehrer’s dogs, along with 33 other dogs owned by his co-conspirators, were rescued by Federal and state law-enforcement agencies as part of the investigation. Buehrer also possessed medical equipment used to treat dogs that were wounded during such fights, as well as equipment for training the dogs, including treadmills, weighted chains, "break sticks," and a "jenny mill" apparatus that forces dogs to run for extended periods of time to build fighting endurance. The co-defendants regularly exchanged interstate electronic communications for the purpose of sharing information about training and conditioning dogs for fighting, breeding fighting dogs, contracting for and sponsoring dog fights, collecting forfeited funds when a contracted dog fight resulted in a forfeit, and sharing results of dog fights.
In imposing the sentence, U.S. District Judge Paul Maloney characterized dog fighting as "disgusting," and observed that "the depravity of training animals to fight is difficult to understand, to say the least."
"Damiane Buehrer and his codefendants participated in a sick and brutal underground activity that, because of its interstate and international nature, is subject to Federal criminal jurisdiction" stated U.S. Attorney Birge. "Because of the uniquely barbarous and cruel nature of this activity, my Office, along with the rest of the West Michigan law-enforcement community, is committed to investigating, punishing and deterring criminals like Buehrer and his coconspirators."
USDA-OIG Special Agent-in-Charge, Anthony Mohatt added, "The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling. Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures."
"Today’s sentence sends a message that there are serious consequences for participating in violent, organized criminal activity," said Special Agent in Charge Timothy R. Slater, Detroit Division of the FBI. "The FBI will continue to work alongside our federal, state and local partners to bring to justice those who engage in this type of behavior for the sake of entertainment and illegal gambling."
"The Michigan State Police (MSP) appreciates the strong working relationships with its federal law enforcement partners in bringing criminals to justice" stated First District Public Information Officer, Lt. Darren Green. "In regards to MSP personnel involved in this particular investigation, D./Sgt. Cyndee Gochanour worked tirelessly on this case. Her strong work ethic and dedication were instrumental in bringing this case to its conclusion."
The United States is represented by Assistant U.S. Attorneys Kate Zell and Hagen W. Frank, and Senior Trial Attorney Jennifer Blackwell of the Justice Department’s Environmental Crimes Section. The case was investigated by the U.S. Department of Agriculture—Office of Inspector General, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, and Firearms, the Michigan State Police, and the Ingham County Animal Control Office. The ASPCA assisted with the care and rehabilitation of the dogs rescued by federal law enforcement.
END
Two Ohio Men Plead Guilty to Conspiring to Unlawfully Export Firearms to LebanonRead the Press Release
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced today that Abdul Majid Saidi, 42, and Walid Mounir Chehade, 38, both of metro Cleveland, Ohio, each pleaded guilty before a U.S. Magistrate Judge pursuant to a plea agreement to one count of conspiring to violate the Arms Export Control Act. The guilty pleas were accepted by U.S. District Court Judge Gordon J. Quist and both defendants were adjudicated guilty. Saidi and Chehade face a maximum of 5 years of imprisonment, 3 years of supervised released, and a $250,000 fine. The sentencing hearings will be held in February, 2019.
Saidi and Chehade admitted at their plea hearings that they conspired with Gilbert Elian in the Grand Rapids, Michigan area to conceal twenty semiautomatic pistols wrapped in felt and plastic inside automobile engine blocks and transmissions. Many of the firearms were purchased in West Michigan. Those engine blocks and transmission were then placed in a cargo shipping container addressed to a consignee in Beirut, Lebanon. The cargo container shipment was intercepted after a U.S. Customs and Border Protection inspection in Virginia. Elian was convicted of the same offense in 2016.
“Abdul Majid Saidi and Walid Mounir Chehade flouted laws designed to control the export of defense articles and international arms trafficking. That conduct warrants the serious consequences they face for obvious reasons,” U.S. Attorney Birge said.
“The illegal proliferation of weapons is controlled by U.S. laws for an important purpose,” said Steve Francis, Special Agent in Charge of Homeland Security Investigations (“HSI”) Detroit, which covers Michigan and Ohio. “Any weapons or firearms obtained by the wrong person or group could harm American interests either domestically or overseas. HSI is committed to bringing to justice any individual or organization willing to circumvent U.S. export laws.”
The case was jointly investigated by HSI Grand Rapids, IRS Criminal Investigations Grand Rapids, ATF Grand Rapids, U.S. Customs and Border Protection, and the Grand Rapids Police Department. Assistant U.S. Attorney Clay M. West prosecuted the case.
END
DEA and partners hold National Prescription Drug Take Back Day on October 27, 2018Read the Press Release
DEA aims to dispose of 10 million pounds of unused pills
DETROIT – After collecting a total of more than 9.9 million pounds (nearly 5,000 tons) of expired, unused and unwanted prescription medications during 15 previous events over the past eight years, the Drug Enforcement Administration expects to reach a total of 10 million pounds collected following the upcoming fall 2018 Take back event. DEA and its national, tribal and community partners will hold the 16th National Prescription Drug Take Back Day across the country on Saturday, October 27. The service is free and anonymous.
This weekend, more than 5,400 collection sites manned by more than 4,400 partner law enforcement agencies will be open 10 a.m. to 2 p.m. local time. The public can find a nearby collection site at www.DEATakeBack.com or by calling 800-882-9539. (DEA cannot accept liquids, needles or sharps.)
"We know that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet," said Acting Administrator Uttam Dhillon. "If we reduce the availability of those unused or expired medications through proper disposal, the fewer drugs there are to be misused, and fewer people will be at risk for abuse, addiction, overdose, and even death."
The National Prescription Drug Take Back Day Initiative addresses a critical public safety and public health issue. Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Because the Environmental Protection Agency and the Food and Drug Administration have advised the public that flushing their prescription drugs down the toilet or throwing them in the trash pose potential safety and health hazards, DEA launched its prescription drug take back program to encourage the safe disposal of medications.
National Take Back Day has received robust public support since its inception in 2010. Last April, the public turned in 456 tons (912,305 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and nearly 4,700 of its local and tribal partners.
END
Battle Creek Man Known as "Rodeo Loco" Sentenced to Life Imprisonment for Sexually Exploiting Three High School GirlsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. District Judge Janet T. Neff sentenced Michael Clayton (a.k.a. "Rodeo Loco") to life in prison for sexually exploiting three girls, each about half Clayton’s age. The sentence follows a three-day trial, where a jury found Clayton guilty of being a felon in possession of firearms, conspiring to distribute cocaine, producing child pornography involving the three girls, and forcing one of them to engage in prostitution. Judge Neff remarked, "this was a horrendous, drug-fueled, weapon-heavy nightmare…. We really do need to protect the public from further crimes of this man."
The Battle Creek Police Department (BCPD) became aware of Clayton’s exploitation when they received a call on October 5, 2017, informing them Clayton was holding a 16-year-old girl against her will. Police reported to Clayton’s residence around 9:30 pm. Clayton initially told police there were no females at the house, but they found the 16-year-old girl in the unlit basement:
After interviewing the girl, police learned Clayton forced her into the basement to avoid police detection. She originally met Clayton a few weeks earlier, when he invited her to party, gave her cocaine, and expected her to have sex with him as payment for the cocaine. Clayton continued providing her cocaine and demanding sex, and he frequently recorded and saved videos of those sex acts. When BCPD and the Department of Homeland Security Investigations (HSI) executed search warrants for Claytons SnapChat account and iPhone, they uncovered over 20 videos of Clayton engaging in sex acts with the 16-year-old, as well as approximately 10 more videos involving a 15 and 17-year-old.
Those search warrants also revealed videos of Clayton with cocaine and guns:
Clayton used the proceeds of his illegal drug sales to promote a business he called Zombie Lifestyle. Police seized this car in association with the case:
The 16-year-old girl also told BCPD that Clayton and his co-defendant, Ramiro Hernandez, pushed her to have sex for money about a week before BCPD found her. Clayton and Hernandez arranged that sex date with someone she did not know, and Clayton kept all of the money. Hernandez pled guilty to sex trafficking the 16-year-old, testified against Clayton at trial, and received a 10-year sentence from Judge Neff.
"This sentencing highlights HSI's commitment to aggressively investigate human trafficking crimes by protecting victims and bringing traffickers to justice," said HSI Special Agent in Charge Steve Francis. "HSI will continue to work tirelessly with our law enforcement partners to dismantle these vile trafficking networks that prey on the vulnerable members of our community."
This case is part of the Project Safe Neighborhood initiative, and it was investigated by BCPD and HSI. Assistant U.S. Attorneys Davin M. Reust and Daniel Y. Mekaru prosecuted it.
END
Greenville Roofing Company Owner Sentenced to Prison for Tax EvasionRead the Press Release
John Frederick Snyder, Owner of Snyder’s Roofing, Willfully Underreported his Income by Over $6 Million for tax years 2009 to 2014
GRAND RAPIDS, MICHIGAN — U.S. District Judge Gordon J. Quist sentenced John Frederick Snyder, 72, of Greenville, Michigan, and owner of Snyder’s Roofing, to 12 months and 1 day in prison on October 18 following his guilty plea to a felony information charging him with tax evasion for the 2011 tax year. Snyder further admitted to willfully evading the assessment of income taxes for 2009 to 2014 by underreporting his income by over $6 million. The court also ordered Snyder to pay restitution of $414,160.00, representing the amount of taxes he intentionally failed to pay, which Snyder paid in full prior to sentencing. The IRS will assess interest and penalties against Snyder in the additional amount of approximately $600,000.00.
"Today, the court again justifiably recognized that the integrity of our country’s tax system depends upon voluntary and honest participation by everyone," said U.S. Attorney Andrew Birge. "Those who repeatedly and intentionally evade their obligation to accurately report their income and pay their fair share of taxes will be brought before the court and face appropriate punishment, up to and including imprisonment."
According to his plea agreement and court records, Snyder consistently failed to timely file tax returns and when he did file he underreported the amount of his business income. He purposely deposited less than all of his business income into his business bank account without informing his accountant. Instead, he took checks from his customers and signed them over to his suppliers (making them third-party checks) to pay for the materials and services used in his business. Because of this practice, his business account never showed his actual business income. Snyder also carried out his tax evasion scheme by depositing checks made payable directly to him for the work of his roofing business into his personal bank accounts, taking back cash at the same time, or negotiating the entire amount of the checks for cash. Snyder used some of this unreported cash to pay his employees.
"This is a classic example of greed," said Manny Muriel, IRS-Criminal Investigation Special Agent in Charge of the Detroit Field Office. "Snyder blatantly disregarded the law to line his own pockets. He painstakingly took steps to avoid paying his fair share of taxes. IRS-Criminal Investigation will continue to seek out and find those who choose to disregard the tax laws."
The IRS-Criminal Investigation Division, Grand Rapids, conducted the investigation, and Assistant U.S. Attorney Ronald M. Stella prosecuted the case.
END
United States Attorney's Office for the Western District of Michigan Honored by Department of Defense for Support of Employees Serving in the Guard and ReserveRead the Press Release
GRAND RAPIDS, MICHIGAN – Michigan Employer Support of the Guard and Reserve (ESGR), a Department of Defense office, joined U.S. Attorney Andrew B. Birge in announcing today that the U.S. Attorney’s Office for the Western District of Michigan was honored with a Patriot Award in recognition of its extraordinary support of its employees serving in the United States military Reserve Components. U.S. Attorney Birge accepted the award on behalf of the office.
According to Paul Ryan, Michigan ESGR State Chair, “the Patriot Award was created by ESGR to publicly recognize individuals who provide outstanding patriotic support and cooperation to their employees, who like the citizen warriors before them, have answered their nation’s call to serve. U.S. Attorney Andrew Byerly Birge and the U.S. Attorney’s Office for the Western District of Michigan were nominated for being highly supportive of Reserve Service. Supportive supervisors are critical to maintaining the strength and readiness of the nation’s Guard and Reserve units.”
U.S. Attorney Birge said, “I appreciate the sense of mission, focus and unique skills Service members bring to my office. At the same time, I understand that supportive employers are critical to maintaining the strength and readiness of the nation’s Guard and Reserve units. We’ve embraced that supportive role here.”
ESGR, a Department of Defense office, seeks to foster a culture in which all employers support and value the employment and military service of members of the National Guard and Reserve in the United States. ESGR facilitates and promotes a cooperative culture of employer support for National Guard and Reserve service by developing and advocating mutually beneficial initiatives, recognizing outstanding employer support, increasing awareness of applicable laws and policies, resolving potential conflicts between employers and their service members, and acting as the employers’ principal advocate within the Department of Defense. Paramount to ESGR’s mission is encouraging employment of Guardsmen and Reservists who bring integrity, global perspective and proven leadership to the civilian workforce.
END
Kenneth Nickerson Sentenced to 57 Months for Threatening to Assault A Social Security Administration EmployeeRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew B. Birge announced today that Kenneth L. Nickerson, 53, of Ludington, Michigan, was sentenced to 57 months in federal prison for threatening to assault a Social Security Administration employee. U.S District Judge Janet T. Neff imposed the sentence.
On June 6, 2017, Mr. Nickerson, who was upset about the level of Supplemental Security Income benefit payments he was receiving, threatened to physically assault a Social Security Administration Claims Specialist working in the Administration’s Ludington, Michigan office. Mr. Nickerson had to be removed from the building and was banned from reentering the property. A month later, on July 6, 2017, Nickerson returned to the vicinity of the Social Security Administration office and sat on a curb across the street. When questioned by officers, Nickerson said he was waiting for the Claims Specialist to finish working and exit the building, whereupon Nickerson planned to “beat him to death.”
“We take threats against federal employees seriously,” Birge said. “Anyone who threatens a federal employee just because he or she is doing their job will be prosecuted to the fullest extent of the law.”
Tracey Thanos, the Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Chicago Field Division echoed these comments. “Employee safety is of paramount concern to the Social Security Administration.” she said. “The Social Security Administration’s Office of Inspector General will investigate and pursue criminal prosecution of any individual who threatens our employees. We appreciate the U.S. Attorney’s Office for prosecuting this individual for this serious offense.”
The Social Security Administration – Office of Inspector General investigated the case. Assistant U.S. Attorney Clay Stiffler handled the prosecution.
END
Kalamazoo Man Sentenced to over Nineteen Years for Methamphetamine TraffickingRead the Press Release
Sentence concludes investigation and prosecution of nine-member methamphetamine distribution ring operating in Kalamazoo and Van Buren Counties
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Byerly Birge announced today that Michael Donnell Neeley, age 39, of Kalamazoo, Michigan, was sentenced by U.S. District Judge Janet T. Neff to 235 months in prison for participating in a methamphetamine distribution ring that operated in Kalamazoo and Van Buren Counties from July 2016 to December 2017. In addition to his prison term, the Court sentenced Neeley to five years of supervised release and ordered him to pay a fine of $3,000.
Neeley, Noel Francisco Saldana, Jesus Manuel Ramirez-Luna, Thomas Lee Cowley, Sheryl Lynn Ayad, Thomas Lewillan Cowley, Jr., Justin Owen Smith, Robert Eugene Nichols, and David Leroy Strickler were charged in December 2017 with conspiracy to distribute and to possess with intent to distribute methamphetamine and various other drug and firearm charges. Neeley, the only charged co-conspirator to go to trial, was convicted by a jury on May 17, 2018. He was the last defendant to be sentenced. Judge Neff sentenced Neeley’s co-defendants earlier this year to the following:
- Noel Francisco Saldana of Hartford, Michigan: 210 months
- Jesus Manuel Ramirez-Luna of Phoenix, Arizona: 121 months
- Thomas Lee Cowley of Kalamazoo, Michigan: 136 months
- Sheryl Lynn Ayad of Kalamazoo, Michigan: one day time served plus two years of weekend confinement
- Thomas Lewillan Cowley, Jr. of Kalamazoo, Michigan: 120 months
- Justin Owen Smith of Watervliet, Michigan: 120 months
- Robert Eugene Nichols of Kalamazoo, Michigan: 36 months
- David Leroy Strickler of Galesburg, Michigan: 12 months and one day
Judge Neff determined that Neeley merited an increased sentence due to his extensive criminal history, for possessing a firearm during the conspiracy, and for committing perjury while testifying in his own defense at trial.
The conspiracy began in approximately July 2016 when Noel Saldana, the conspiracy’s leader, and Thomas Lee Cowley met Phoenix-based methamphetamine supplier Jesus Ramirez-Luna. Thereafter, Ramirez-Luna supplied Saldana with pounds of methamphetamine on a monthly basis for further redistribution throughout Kalamazoo and Van Buren Counties. Ramirez-Luna used the U.S. Postal Service and the United Parcel Service to ship methamphetamine to Saldana and his co-conspirators in west Michigan. Saldana coordinated receipt of the methamphetamine deliveries with Thomas Lee Cowley and Sheryl Ayad. After receiving the methamphetamine, Saldana distributed it to Thomas Lee Cowley, Neeley, Smith, and others for further distribution in west Michigan. The conspiracy ended in December 2017 when federal law enforcement officers arrested eight of the nine defendants on a criminal complaint and executed search warrants at eight locations tied to the conspiracy. Over the course of the investigation, law enforcement authorities intercepted more than 11 pounds of crystal methamphetamine from the mail.
"Crystal methamphetamine is a highly addictive drug that causes ruin to its users and users’ loved ones. Those that traffic in this pernicious substance justifiably face stiff prison sentences," stated Birge. "This investigation was a great example of the strong partnerships that exist among federal, state, and local law enforcement agencies in the Western District of Michigan."
"Make no mistake, this organization preyed on our communities and destroyed west Michigan neighborhoods by distributing methamphetamine and various drugs. These sentencings are a step toward disrupting the poison pushers in America," stated Timothy J. Plancon, Special Agent in Charge of the Detroit Field Division of the Drug Enforcement Administration.
"The cooperative partnership between federal, state, and local law enforcement brought the Saldana drug trafficking organization to a halt," said Patricia A. Armstrong, Inspector in Charge of the Detroit Division of the U.S. Postal Inspection Service. "The stiff sentences handed down in this case should serve as a stern warning to others that Postal Inspectors and their law enforcement partners will vigorously pursue those who criminally misuse the U.S. Mail to traffic deadly narcotics into our local communities."
"We are extremely pleased with the outcome of this case. Our partnership with the federal and state agencies has proven to be effective in removing criminals from our communities," stated Mike Kelley, Executive Lieutenant of the Kalamazoo Valley Enforcement Team. "This case proves that these partnerships provide a means to completely dismantle an entire drug trafficking organization from the street level dealers to the source of supply."
"Southwest Michigan has been hit hard by the influx of crystal methamphetamine. We are thankful for the great partnerships between law enforcement, prosecutors, and our allies in the prevention and treatment sector," stated Richard Pazder, Detective/First Lieutenant with the Southwest Enforcement Team. "Excellent cases like this one highlight our resolve to address the growing threat to our communities and our commitment to improve the quality of life for our citizens."
The investigation was led by the Drug Enforcement Administration and assisted by the U.S. Postal Inspection Service and the Kalamazoo Valley Enforcement Team (KVET) and the Southwest Enforcement Team (SWET), two state-based multijurisdictional narcotics task forces. Dubbed "Operation Crystal Misery," the investigation was part of the U.S. Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program. Established in 1982, the OCDETF Program is designed to disrupt and dismantle major drug trafficking and money laundering organizations and related criminal enterprises by leveraging the resources and unique expertise of numerous federal agencies in a coordinated attack.
Assistant U.S. Attorneys Joel S. Fauson and Stephen P. Baker handled the prosecution.
END
Defendants Plead Guilty to Conspiracy and Identity Theft ChargesRead the Press Release
Eddie Balderramas, Michael Balderramas, and Michelle Martinez-Marte Assisted Illegal Aliens in Obtaining Michigan Driver’s Licenses in the Identities of Other Individuals
GRAND RAPIDS, MICHIGAN — Michelle Martinez-Marte, 37, of Rhode Island, Eddie Michael Balderramas, 51, and his son, Michael James Balderramas, 28, of Kalamazoo, Michigan, recently pled guilty to a federal indictment charging conspiracy to transfer identification documents and the means of identification of others to obtain Michigan driver’s licenses. According to the plea agreements, between at least April 4, 2016, and July 20, 2017, defendants conspired to assist illegal aliens, mostly from the Dominican Republic, in obtaining Michigan driver’s licenses using the identities of others. Martinez-Marte acquired Puerto Rican birth certificates, driver’s licenses, and social security account number cards in the names of actual individuals from a source in Puerto Rico. Martinez-Marte then referred the illegal aliens to Eddie Balderramas. Either Eddie Balderramas, or his son Michael Balderramas, would travel to New York City and transport the illegal aliens to Michigan where they would be harbored at a home in Kalamazoo. Eddie Balderramas produced false leases, paystubs, and other documents to make it appear as if the illegal aliens were truly Michigan residents. Eddie and Michael Balderramas would then transport the illegal aliens to Michigan Secretary of State Offices and would use the Puerto Rican documents, the social security numbers, and the counterfeit documents of Michigan residency, to acquire an authentic Michigan driver’s license for the illegal aliens using the names and personal identifiers of other individuals. The illegal aliens paid Eddie Balderramas and Michelle Martinez-Marte for their assistance so that they could live in the country under the names of others and avoid detection by immigration authorities.
Eddie Balderramas will be sentenced in U.S. District Court in Grand Rapids on January 22, 2019. Michael Balderramas will be sentenced on January 28, 2019, and Martinez-Marte on February 1, 2019. All defendants face up to 15 years’ imprisonment on the conspiracy charge. Martinez-Marte and Eddie Balderramas both face an additional penalty of 2 years’ imprisonment for their aggravated identity theft convictions, which sentence must be served consecutively to any term of imprisonment imposed for the conspiracy conviction. Finally, Martinez-Marte faces up to 2 years’ imprisonment for her additional conviction of illegally reentering the United States after her prior removal from the country.
The investigation of the case is being handled by the Department of Homeland Security- Homeland Security Investigations, Grand Rapids; Michigan Department of State-Office of Investigative Services; Southwest Enforcement Team; Michigan State Police; and the Drug Enforcement Administration. Assistant United States Attorney Ronald M. Stella is handling the prosecution.
END