Eastern District of Michigan

Detroit, MI – Acting U.S. Attorney Saima Mohsin will join law enforcement, community leaders and residents on Tuesday, August 3rd at several locations throughout Detroit to celebrate the National Night Out crime and drug prevention events.

National Night Out is a community-building and crime prevention campaign that promotes collaborative law enforcement-community partnerships and neighborhood camaraderie. Thousands of communities nationwide will participate in neighborhood block parties, festivals, cookouts, safety demonstrations, seminars, and activities that heighten crime and drug prevention awareness and generate support for and participation in local anticrime efforts. Events such as these help to strengthen neighborhood spirit, police-community partnerships, and demonstrate a shared commitment for strong and safe communities.

“Keeping our communities safe is a top Justice Department priority, as it is for state, local and Tribal police departments across the country,” said Attorney General Merrick B. Garland. “Law enforcement is most effective when it has the trust and support of the communities it serves. That is why events like National Night Out are so important and effective; they help to bridge the gap between neighbors and their police departments in a positive and informal setting.”

“National Night Out is a time for law enforcement, community leaders and residents to join together in the fight against crime in our communities. These types of events help to strengthen our resolve to root out crime and build stronger and safer communities,” said Acting US Attorney Mohsin. “I’m proud to stand shoulder-to-shoulder with our stakeholders to support safer streets.”

DPD Chief White stated, "National Night Out provides another opportunity to connect with our community and to build relationships based on trust and respect. It also illustrates our commitment to reduce crime and improve the quality of life for our residents through community policing. We look forward to joining millions across America including law enforcement members to mark this momentous event. We are #OneDetroit!”

Mrs. Mohsin will appear at Detroit Police precincts all throughout the city.

As students prepare to leave home for college, the U. S. Attorney’s Office for the Eastern District Michigan wants to raise awareness among students that may be living on their own in off-campus housing for the first time about their rights and protections under the federal Fair Housing Act—in particular, the prohibition against sexual harassment in housing. 

Sexual harassment in housing is sex discrimination under the Fair Housing Act.  It includes demands for sex or sexual acts in order to buy, rent, or continue renting a home. It also includes other unwelcome sexual conduct that makes it hard to keep living in or feel comfortable in your home. If a landlord, rental manager, maintenance worker, or anyone else with control over housing engages in any of these types of behaviors with a tenant or prospective tenant, this may be unlawful sexual harassment:

•          Commenting on tenant’s body or looks

•          Sending sexually suggestive text messages to victim

•          Lurking or spying on tenant

•          Exposing self to tenant, showing tenant pornography, talking about sex with tenant

•          Entering tenant’s home unannounced, without notice or legitimate reason for doing so

•          Touching tenant without consent

•          Conditioning certain housing benefits – for example, renting to, making repairs, excusing a

              late rent payment – on receipt of sexual favors, including engaging in sexual acts, taking                                                                                   

              pictures of tenant, etc.

•          Threatening to evict tenant if they do not engage in sexual acts or favors

Beginning July 26, 2021, the U.S. Attorney’s Office will be sending correspondence to local universities enclosing information on the Fair Housing Act and materials about sexual harassment in housing that can be shared with students living in off-campus housing.  Employees from the U.S. Attorney’s Office will also be posting flyers on local college campuses providing information for victims of sexual harassment to help to shine a spotlight on behavior that often goes unreported.

“Sexual harassment in housing is illegal and unacceptable,” stated Saima S. Mohsin, Acting United States Attorney for the Eastern District of Michigan. “Students, like all Americans, have the right to feel safe and secure in their homes, free from unwanted sexual harassment.  Our office will work aggressively to punish anyone who uses their authority over someone’s housing to sexually harass them.”

Fighting illegal discrimination in housing is a top priority of the Department of Justice and the Civil Rights Unit of the U.S. Attorney’s Office for the Eastern District of Michigan. In 2018, the Department of Justice began the Sexual Harassment in Housing Initiative as an effort to combat sexual harassment in housing.  The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Individuals who believe they have been a victim of housing discrimination can call the U. S. Attorney’s Office Civil Rights Hotline at 313.226.9151 or by sending an email to usamie.civilrights@usdoj.gov. 

The Civil Rights Unit of the U.S. Attorney’s Office was established in 2010 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit https://www.justice.gov/usao-edmi/programs/civil-rights.

Detroit, MI – The United States Attorney’s Office for the Eastern District of Michigan announced today that it has reached a settlement with Westborn Inc., owner and operators of Westborn Markets in Plymouth, Dearborn, Livonia, and Berkley, MI, to resolve an allegation that it improperly interrogated an individual with a disability accompanied by a service animal.  The investigation began after the US Attorney’s Office received a complaint through its Civil Rights Hotline from a man with a disability who uses a service animal who alleged that an Westborn employee demanded written proof that his dog was a service animal and was asked to leave the market when he refused. 

“People with disabilities who use service animals should not have to suffer through invasive questions or provide written documentation for their dogs in order to go grocery shopping or engage in other activities of daily living,” said Saima Mohsin, Acting U.S. Attorney for the Eastern District of Michigan. “If it is not obvious that a dog is a service animal, a store may ask only two questions: 1) Is the animal required because of a disability? and 2) What work or tasks has the animal been trained to perform? Anything beyond that is a violation of the Americans with Disabilities Act.”

Under the settlement agreement, Westborn Inc. will adopt a non-discrimination policy with specific service animal provisions, train all of its employees on the ADA, and prominently display in each store a notice indicating that service animals are welcome.

The ADA prohibits discrimination against people with disabilities by public accommodations, such as grocery stores and retail markets. Public accommodations must allow people with disabilities the full and equal enjoyment of their goods, services, and facilities, which includes making reasonable modifications of their policies, practices, and procedures to permit people with disabilities to be accompanied by service animals. 

The Civil Rights Unit of the U.S. Attorney’s Office for the Eastern District of Michigan was established in 2010 with the mission of prioritizing federal civil rights enforcement. For more information on the Office’s civil rights efforts, including a copy of settlement agreement with Westborn Inc., please visit https://www.justice.gov/usao-edmi/programs/civil-rights.  ADA complaints may be emailed to usamie.civilrights@usdoj.gov or by contacting the U.S. Attorney's Office’s Civil Rights Hotline at (313) 226-9151.

More information about the ADA is available at the Justice Department’s toll free ADA Information line at (800) 514 0301 or (800) 514 0383 (TTY) and on the ADA website at www.ada.gov. 

WASHINGTON – A Iranian national pleaded guilty today for his role in a conspiracy to export U.S. goods to Iran in violation of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR).

According to court documents, Arash Yousefi Jam, 33, an Iranian national living in Ontario, conspired with others – including Abdollah Momeni Roustani, believed to be living and working in Iran – to obtain goods from at least three U.S. companies, including one in Michigan, and export those goods to Iran in violation of economic sanctions. Records shows that the goods included nine electrical discharge boards, one CPU board, two servo motors and two railroad crankshafts.

According to court records and Jam’s guilty plea, the defendants caused the goods to be shipped from the United States through the United Arab Emirates and to Iran in an attempt to hide the fact that the end users of the goods were located in Iran – a fact that Jam knew. Jam and the other conspirators also ensured that payment for the goods came from banks in countries other than Iran to hide the ultimate destination of the goods from U.S. companies.

Jam is scheduled to be sentenced on October 14, at 11 am before U.S. District Judge Stephen J. Murphy. Jam faces a statutory maximum penalty of five years in federal prison and a $250,000 fine. 

Special Agents of Homeland Security Investigations and the Commerce Department’s Office of Export Enforcement are investigating the case.

Assistant U.S. Attorney Hank Moon of the Eastern District of Michigan and Trial Attorney Adam Barry of the Justice Department’s National Security Division are prosecuting the case, with valuable assistance provided by the Criminal Division’s Office of International Affairs.

An Iranian national residing in Canada pleaded guilty today for his role in a conspiracy to export U.S. goods to Iran in violation of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR).

According to court documents, Arash Yousefi Jam, 33, an Iranian national living in Ontario, conspired with others – including Abdollah Momeni Roustani, believed to be living and working in Iran – to obtain goods from at least three U.S. companies, including one in Michigan, and export those goods to Iran in violation of economic sanctions. Records shows that the goods included nine electrical discharge boards, one CPU board, two servo motors and two railroad crankshafts.

According to court records and Jam’s guilty plea, the defendants caused the goods to be shipped from the United States through the United Arab Emirates and to Iran in an attempt to hide the fact that the end users of the goods were located in Iran – a fact that Jam knew. Jam and the other conspirators also ensured that payment for the goods came from banks in countries other than Iran to hide the ultimate destination of the goods.

Jam is scheduled to be sentenced on Oct. 14 at 11 a.m. before U.S. District Judge Stephen J. Murphy. Jam faces a statutory maximum penalty of five years in federal prison and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Special Agents of Homeland Security Investigations and the Commerce Department’s Office of Export Enforcement are investigating the case.

Assistant U.S. Attorney Hank Moon of the Eastern District of Michigan and Trial Attorney Adam Barry of the Justice Department’s National Security Division are prosecuting the case, with valuable assistance provided by the Criminal Division’s Office of International Affairs.

A Harper Woods man, who wore prosthetic facemasks to hide his identity, was sentenced today to four years in federal prison on charges of wire fraud and identity fraud in a scheme to defraud and obtain money from the accounts of Global Payments Gaming Services Inc. (GPGS)’s VIP Preferred Program patrons, announced Acting United States Attorney Saima Mohsin.

Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division.

John Christopher Colletti, 56, was sentenced by United States District Judge Linda V. Parker in United States District Court in Detroit this afternoon.

According to court records, beginning in or around April 26, 2019, and continuing through March 12, 2020, Colletti, with the intent to defraud, unlawfully accessed accounts in the names of several individual victims using GPGS’s kiosks located within various casino properties in at least two states, including the MGM Grand in Detroit. Colletti used names, driver’s license numbers, and the last four digits of Social Security Numbers assigned to known individuals in order to access one or more accounts in those individuals’ names. Upon gaining access to these accounts, Colletti initiated numerous transactions, withdrawing thousands of dollars from these accounts.  Colletti made these withdrawals with both the intent to defraud and knowledge of the fact that he was not entitled to the money in the victims’ accounts. Further, in making these withdrawals, Colletti attempted to disguise himself by wearing one or more full prosthetic facemasks. Colletti defrauded his victims out of approximately $125,740.00 dollars.

Colletti had in his possession pieces of personally identifiable information (PII) for approximately 300 identities, as well as several full prosthetic facemasks.

GPGS assumed the loss on behalf of its VIP Preferred Program patrons, who were the individual victims. As part of his guilty plea, Colletti will be required to pay restitution to GPGS in the full amount of $125,740.00.

The investigation of this case was conducted by the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorney Ryan Particka.

DETROIT – A member of the violent eastside Detroit street gang, Smokecamp, a/k/a Original Paid Bosses (or OPB), was sentenced yesterday to 210 months in federal prison after having pleaded guilty to racketeering conspiracy and assault with a dangerous weapon, bringing the total number to 13 members of this gang having been convicted and sentenced, Acting United States Attorney Saima Mohsin announced.  

Joining in the announcement were Keith Krolczyk, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Chief James White, Detroit Police Department, Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division and Special Agent in Charge Keith Martin, US Drug Enforcement Administration, Detroit Division.

Sentenced was Tyree Williams, 27.

“These convictions and sentences demonstrate that by working together, federal, state and local law enforcement are systematically dismantling the street gangs that cause violent crime in our neighborhoods,” said Acting US Attorney Mohsin.  “Detroit residents deserve to live in a community safe from violent crime.”

Acting Special Agent in Charge Krolczyk stated, “ATF’s highest priority is to remove violent criminals from our streets. Our long standing partnerships in the law enforcement community continues to expand these efforts to disrupt and dismantle violent gangs and criminal organizations.”

According to court records, the gang operated on the east side of Detroit, specifically the area in and around Albion Street and Seven Mile, an area Smokecamp/OPB members refer to as “ABlock.”  This area is within a larger territory on Detroit’s east side claimed by the Bloods street gang known as the “Red Zone.”  The gang has modified its name multiple times throughout the years going from “Runyon Boys” to “Original Paid Bosses” to “Paid Bosses Inc.” to “Smokecamp.”

In November, 2017, an indictment was returned which alleged that Smokecamp members were known to engage in robberies and extortion and that the gang made its money predominantly through the sale of narcotics, including cocaine, crack cocaine, heroin, marijuana, ecstacy, and other prescription pills.  According to the indictment, the gang regularly sold these controlled substances on the “ABlock,” outside of vacant houses known as “trap houses,” and businesses in the area of Seven Mile and Albion.  Additionally, between approximately 2014 – 2015, Smokecamp/OPB members regularly sold controlled substances from an apartment complex on East Seven Mile, which they branded the “Plaga,” sharing workers and firearms to distribute and protect their narcotics.  However, this activity was not confined only to Detroit with some of their members traveling to Kentucky, West Virginia, and Ohio to sell their narcotics. The gang regularly engaged in acts of violence, including shootings and murder, in order to intimidate rival gangs and maintain control of their territory.

Through the lead efforts of the ATF and Detroit Police Department Gang Intelligence Unit, along with the efforts of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Michigan Department of Corrections, investigators were able to identify the members of this particular gang while investigating a similar gang on Detroit’s westside and piece together the varied criminal misconduct of the Smokecamp/OPB organization.

The following individuals have been convicted for their role in the gang and have received sentences ranging from 66 months to 384 months in federal prison:

•            Korey Sanders, a/k/a “No Loan Corleon,” “Stax,” 29, of Detroit, pleaded guilty to RICO conspiracy, willful engagement in firearms business without a license and possession with intent to distribute a controlled substance; sentenced to 72 months in federal prison;

•            Jerray Key, a/k/a “Chino,” “Dre,” 31, of Canton, pleaded guilty to RICO conspiracy and felon in possession of a firearm; sentenced to 72 months in federal prison’

•            Deshawn Langston, a/k/a “Pook,” “Slips,” 30, of Detroit, pleaded guilty to RICO conspiracy and assault with a dangerous weapon in aid of racketeering, sentenced to 240 months in federal prison;

•            Richard Langston, a/k/a “Dub,” “Rich,” “Blow,” 31, of Detroit, pleaded guilty to RICO conspiracy, sentenced to 170 months in federal prison;

•            Hakeem Bunnell, a/k/a “LB Dub,” 27, of Detroit, pleaded guilty to RICO conspiracy, and assault with a dangerous weapon in aid of racketeering, sentenced to 348 months in federal prison;

•            Keenan Nielbock, a/k/a “Dolla,” “Keno” 33, of Taylor, pleaded guilty to  RICO conspiracy, sentenced to 84 months in federal prison;

•            Caraun Key, a/k/a “Luch,” “Ron,” “Slick,” 29, of Detroit with RICO conspiracy, sentenced to 72 months in federal prison;

•            Darryl Key, a/k/a “DB,” “Big Baby,” 30, of Detroit, with RICO conspiracy, sentenced to 66 months in federal prison;

•            Tyree Williams, a/k/a “Snoop,” 27, of Detroit, Pleaded guilty to charges of RICO conspiracy and assault with a dangerous weapon; sentenced to 210 months in federal prison;

•            Romale Gibson Jr., a/k/a “Santana,” 27, of Detroit, with RICO conspiracy, sentenced to 72 months in federal prison;

•            Cary Dailey, a/k/a “Cease,” 31, of Detroit, with RICO conspiracy, sentenced to 72 months in federal prison;

•            Antonio Langston, a/k/a “Tone,” 32, of Detroit, with RICO conspiracy, sentenced to 96 months in federal prison;

•            Carlos Davis, a/k/a “Los,” “Loso,” 28, of Detroit with RICO conspiracy and assault with a dangerous weapon in aid of racketeering, sentenced to 180 months in federal prison.

Acting US Attorney Mohsin commended the hard work and dedication of all law enforcement agencies involved in the investigation of this case as well as Assistant United States Attorneys Jerome Gorgon, Andrew Yahkind and Blake Hatlem who prosecuted this case.

DETROIT - Former Detroit Police Department Officer, Deonne Dotson, was sentenced today to 80 months in federal prison following convictions for extortion announced Acting United States Attorney Saima Mohsin.

Joining Mohsin in the announcement were Timothy Waters, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, Juan Vargas, Acting U.S. Postal Inspector in Charge, U.S. Postal Inspection Service, Detroit Division and Chief James White, Detroit Police Department.

Dotson, age 49, was convicted after an 8-day jury trial before United States District Judge Robert H. Cleland. The trial was conducted in November 2019, but Dotson’s sentencing was delayed due to the COVID-19 pandemic.

According to the evidence presented at trial, Officer Dotson accepted bribes from owners and operators of automobile collision shops in exchange for referring stolen and abandoned vehicles recovered in the City of Detroit to their shops.  The evidence also showed that Officer Dotson created false police reports in exchange for money from the owners and operators of the same collision shops.  Owners of the vehicles were unaware that Officer Dotson was being paid by the collision shops when they agreed to have their cars fixed by the collision shops.                           

Five other Detroit Police Officers pleaded guilty and served time in federal prison for committing similar criminal activity while they were Officers with the Detroit Police Department.  All six officers were actively employed with the Detroit Police Department at the time of the offenses. The other five officers were:  Charles Wills, James Robertson, Jamil Martin, Martin Tutt, and Anthony Careathers. All of the Officers were charged with engaging in extortion for using their official positions as Police Officers to refer cars to certain collision shops in exchange for cash payments.   

“The overwhelming majority of Detroit Police Officers are honest, hard-working, and superb public servants,” said Mohsin. “Dotson’s conviction and 80 months’ sentence shows that no one is above the law, and when police officers commit crimes and violate their oath to protect and serve the public, they will be held accountable.”

"Mr. Dotson abused his authority as a law enforcement officer by engaging in conduct designed to benefit him personally. His actions are in stark contrast to the professionalism and integrity shown by the Detroit Police Department on a daily basis," said Timothy Waters, Special Agent in Charge of the FBI's Detroit Division.

“The successful resolution of this case highlights the importance of interagency cooperation. What began as a mail fraud investigation into illicit insurance claims developed into a public corruption case resulting in the conviction of six police officers for extortion – all because of the joint investigative effort. I fully commend all agencies involved for the hard work and countless hours put forth to bring these corrupt officers to justice,” said Juan Vargas, Acting US Postal Inspector in Charge.

The investigation was conducted by the FBI, the U.S. Postal Inspection Service, Detroit Police Department and the following agencies from the FBI Detroit Area Corruption Task Force: Michigan State Police and U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operation Division.  

The FBI Detroit Area Corruption Task Force is comprised of personnel from the Detroit Division of the FBI; Michigan State Police; Michigan Department of Attorney General; Detroit Police Department; U.S. Internal Revenue Service, Criminal Investigation Division; U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operations Division; U.S. Postal Inspection Service; U.S. Department of Labor, Office of the Inspector General, Office of Labor Racketeering and Fraud Investigations; U.S. Department of Housing and Urban Development, Office of the Inspector General; U.S. Department of Transportation, Office of the Inspector General; U.S. Department of Homeland Security, Office of the Inspector General; U.S. Department of Education, Office of the Inspector General; and U.S. Environmental Protection Agency, Office of the Inspector General.

 The case was prosecuted by Assistant United States Attorneys Sarah Resnick Cohen and Craig A. Weier.

DETROIT - Detroit resident Darrell Baker was sentenced to 24 months in federal prison on charges of bank fraud and money laundering arising out of a $590,000 Covid-19 fraud scheme, announced Acting United States Attorney Saima Mohsin.

Joining in the announcement were Special Agent in Charge Timothy Waters, Federal Bureau of Investigation and Inspector General Hannibal Mike Ware of the Small Business Administration’s Office of Inspector General.

Darrell Baker, 56, pleaded guilty in September, 2020 to one count of bank fraud arising from his effort to obtain some $590,000 by defrauding a Pennsylvania financial institution in the issuance of a “Paycheck Protection Program” (PPP) loan. Baker also pleaded guilty to one count of money laundering, the result of financial transactions he engaged in with the fraudulently obtained funds.  

“Mr. Baker treated the PPP like his own personal bank account,” said Acting US Attorney Mohsin.  “This defendant’s actions caused the diversion of essential funds earmarked for legitimate businesses suffering due to the COVID-19 pandemic for his own personal gain. We are committed to ensuring that anyone who takes advantage of the system will be prosecuted.”

"By illegally taking money from the Paycheck Protection Program, Mr. Baker harmed the owners and employees of small businesses struggling through the pandemic," said Timothy Waters, Special Agent in Charge of the FBI in Detroit. "The FBI is committed to working with our law enforcement partners to investigate and hold accountable anyone taking advantage of a global pandemic to line their own pockets."

Baker acknowledged in his plea agreement to applying for and obtaining a $590,000 PPP loan on behalf of a purported business that he owns, called “Motorcity Solar Energy, Inc.” The PPP is a program managed by the Small Business Administration (SBA) that provides loans to help businesses keep their workforces employed during the pandemic. The SBA forgives the loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The PPP loans are funded from participating banks, in this case Customers Bank in Pennsylvania.

Baker submitted paperwork with his loan application representing that Motorcity Solar Energy Inc. had 68 employees and, in 2019 paid wages, tips, and other compensation totaling $2.8 million. All of these representations were in fact false. Motor City Solar Energy had no employees, no payroll expenses of any kind, and was not an operational business. Baker submitted these false statements as part of a scheme to intentionally defraud Customers Bank.  

Baker managed to withdraw approximately $172,000 of the $590,000 loan he obtained before Baker’s own financial institution froze the remainder, which was ultimately returned to Customer’s Bank. Baker used the funds he did obtain to purchase four cashier’s checks, and used the four checks to purchase two Cadillac Escalades, a Dodge Charger, and a Hummer.  Mr. Baker was ordered to forfeit these vehicles.  Baker was also ordered to pay a money judgment in the amount of $172,484.40, which represents the portion of the loan that Baker obtained before his fraud was uncovered and the balance of the loan frozen as well as pay restitutuion in the amount of $89,864..

The case was prosecuted by Assistant United States Attorney John K. Neal. The investigation was conducted jointly by the FBI and the SBA-OIG.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Vance Pearson, the former Director of the United Auto Worker’s Region 5 and a former member of the UAW’s International Executive Board, was sentenced to 12  months in prison today for conspiring with other UAW officials to embezzle hundreds of thousands of dollars of UAW dues money and to further racketeering activity announced Acting U.S. Attorney Saima S. Mohsin.

Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Timothy Waters, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Brian Thomas, Acting Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.

Vance Pearson, 58, of St. Charles, Missouri, was sentenced to 12 months in prison, $250,000 in restitution to the UAW, forfeiture of $122,258.26 and three years of supervised release by United States District Judge Paul Borman based on his conviction for conspiring with former UAW President Gary Jones and other senior UAW officials to embezzle UAW dues money and to further racketeering crimes between 2010 and September 2019.   

Between June 2018 and September 2019, Pearson served as the Director of Region 5 of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”).  The UAW represents over 400,000 active members and over 580,000 retired members in more than 600 local unions across the United States.  The UAW’s Region 5 was headquartered in Hazelwood, Missouri, and covered the tens of thousands of UAW members in Missouri and the sixteen states to the southwest, including California and Texas.  

Pearson stands convicted of conspiring with at least six other high-level UAW officials in a multi-year conspiracy to embezzle money from the UAW for the personal benefit of senior UAW officials.  Pearson and other UAW officials concealed personal expenditures in the cost of UAW Region 5 conferences held in Palm Springs, California, Coronado, California, and Lake of the Ozarks, Missouri.  Between 2010 and 2018, Pearson and other UAW officials submitted fraudulent expense forms seeking reimbursement from the UAW’s Detroit headquarters for expenditures supposedly incurred in connection with Region 5 leadership and training conferences.  In truth, however, Pearson and his co-conspirators used the conferences to conceal the hundreds of thousands of dollars in UAW funds spent on lavish entertainment and personal spending for the conspirators. 

Pearson admitted that he and other senior UAW officials used the UAW money to pay for personal expenses, including golf clubs, private villas, cigars, golfing apparel, green fees at golf courses, and high-end liquor and meals costing over $750,000 in UAW funds.  For example, during the course of the conspiracy, Pearson and the other co-conspirators used UAW money to purchase over $60,000 in cigars and four sets of custom-made golf clubs for the use of high-level UAW officials.   

As part of the court’s sentence, Pearson was ordered to forfeit a custom-made set of Titleist golf clubs, $81,000 held in his “Flower Fund” account and $38,000 from his Members in Solidarity account.  In addition, Pearson has been ordered to pay $250,000 in restitution to the UAW.  Co-defendant Edward Robinson was ordered to pay restitution of $300,000 to the UAW, co-defendant Dennis Williams paid $132,000 in restitution to the UAW, and co-defendant Gary Jones was ordered to pay $550,000 in restitution to the UAW.     

Because Pearson provided substantial assistance in the investigation of other individuals and entities, the United States sought a lower prison sentence for him.       

Pearson is the seventeenth defendant convicted in connection with the ongoing criminal investigation into corruption within the UAW or relating to illegal payoffs to UAW officials by FCA executives.  The following other individuals have already pleaded guilty to their participation in the scheme and have been sentenced:  former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), former senior UAW official Michael Grimes (28 moths), former UAW Midwest CAP President Edward “Nick” Robinson (12 months in prison), former UAW Vice President Joseph Ashton (30 months), former UAW President Dennis Williams (21 months), and former UAW President Gary Jones (28 months).  The company, FCA US LLC, now known as Stellantis, pleaded guilty in January 2021 to conspiring to violate the Taft-Hartley Act, and the company will be sentenced on June 21, 2021.  Former senior UAW official Jeffrey “Paycheck” Pietrzyk passed away before being sentenced.

In December 2020, the United States filed a civil lawsuit against the UAW under the Anti-Fraud Injunction Act based on the criminal investigation of the UAW, FCA US LLC, and FCA’s executives.  Subsequently, the United States and the UAW entered into a Consent Decree to settle the lawsuit that was approved by the U.S. District Court.  The Court has appointed attorney Neil Barofsky to serve as the Independent Monitor of the UAW for the next six years.  The Monitor is tasked with providing federal oversight of the UAW concerning fraud, corruption, and misconduct within the UAW.  In addition, the Monitor will conduct and oversee a referendum of all UAW members to determine if the membership wants to adopt a direct election, also known as “one member, one vote,” method of electing the members of the UAW’s International Executive Board.             

Acting U.S. Attorney Mohsin commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.

“Today’s conviction shows our office’s commitment to holding accountable the high level officials of the UAW who embezzled hundreds of thousands of dollars on the backs of working men and women of their union,” said Acting United States Attorney Saima S. Mohsin.  

“Today’s sentence holds Vance Pearson accountable for his actions to personally enrich himself at the expense of dues-paying UAW members. Pearson conspired with senior UAW officials to embezzle hundreds of thousands of dollars of union dues money to further their racketeering activity.  We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

“Today’s sentencing continues to show that IRS Criminal Investigation is working vigorously to protect the UAW’s membership from corrupt leadership and the integrity of the American tax system." said IRS-CI Acting Special Agent in Charge, Brian Thomas, of the Detroit Field Office.”

“Safeguarding financial integrity in labor unions and combating financial malfeasance is a very high priority for the U.S. Department of Labor. While the vast majority of union officials do their work diligently and without incident, Vance Pearson betrayed the trust the UAW membership placed in him by participating in a complex embezzlement scheme to steal over a million dollars from the UAW, so he and other high-ranking UAW officers could live a lavish lifestyle at the expense of the UAW and its members,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “OLMS will continue to work with its law enforcement partners to hold accountable anyone that unlawfully exploits their union position to enrich themselves without regard to the best interests of union members.”

The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Steven Cares, and Adriana Dydell.

DETROIT - A Detroit man pleaded guilty today for his role in a scheme aimed at defrauding the State of Michigan, other states, and the U.S. Government of funds earmarked for unemployment assistance during the COVID19 pandemic, announced Acting United States Attorney Saima Mohsin.

Joining in the announcement were  Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge Douglas J. Zloto, US Secret Service, Acting Special Agent in Charge Juan Vargas, US Postal Inspection Service,  Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Acting Special Agent in Charge Brian Thomas, Internal Revenue Service-Criminal Investigation and Liza Estlund Olson, acting director of the Unemployment Insurance Agency.

Pleading guilty was Johnny Richardson, 26.

According to court records, Richardson conspired with others including Brandi Hawkins—a former contract employee for the State of Michigan Unemployment Insurance Agency who pleaded guilty last month—to fraudulently obtain hundreds of thousands of government money that was intended to support individuals who lost their jobs during the COVID-19 pandemic.

According to the plea agreement, Richardson, either himself or through others, filed fraudulent unemployment claims over the Internet in at least five states resulting in the fraudulent disbursement of at least $683,555 of funds intended for unemployment assistance during the pandemic.  Richardson provided Hawkins information on Michigan claims, and Hawkins subsequently used her insider access to fraudulently release payments on these claims. 

Richardson is scheduled to be sentenced on November 9, 2021 at 11 am before United States District Judge Bernard A. Friedman.  Co-defendant Micahia Taylor is scheduled for a plea hearing on August 10, 2021 at 11:30am.

The case is being prosecuted by Assistant United States Attorney Timothy Wyse. The investigation is being conducted jointly by the Department of Labor, Office of Inspector General, United States Secret Service, Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, the U.S. Postal Inspection Service and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.

For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

 

A Detroit woman pleaded guilty today for her role in a multi-million dollar unemployment insurance fraud scheme aimed at defrauding the State of Michigan and the U.S. Government of funds earmarked for unemployment assistance during the COVID19 pandemic, announced Acting United States Attorney Saima Mohsin.

Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge Douglas J. Zloto, US Secret Service, Juan Vargas, Acting Postal Inspector in Charge of the Detroit Division, Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Acting Special Agent in Charge Kelly Lewis, Internal Revenue Service-Criminal Investigation and Liza Estlund Olson, acting director of the Unemployment Insurance Agency.

Brandi Hawkins, 40, pleaded guilty before United States District Judge Paul D. Borman.  A sentencing date was set for October 28, 2021 where she faces a statutory maximum penalty of 20 years in federal prison.

According to court records, Brandi Hawkins was a contract employee for the State of Michigan Unemployment Insurance Agency.  Her duties included reviewing, processing and verifying the legitimacy of unemployment insurance claims.  Between April and June of 2020, HAWKINS worked with outside actors, known and unknown to law enforcement.  Daily, those actors entered numerous false claims into the State of Michigan’s Unemployment Insurance Agency system, many of which were filed using stolen identities.  These actors communicated with HAWKINS by cellular telephone calls and texts.  HAWKINS accepted bribes in return for releasing many of these claims.  HAWKINS used her insider access to fraudulently release payment on over seven-hundred claims, more than ten of which involved claims filed using stolen identities.  HAWKINS’s actions resulted in the fraudulent disbursement of approximately $3.8 million of federal and state funds intended for unemployment assistance during the pandemic.  Had every fraudulent claim released by HAWKINS been disbursed in full, the resulting loss of federal and state funds would have been over $12 million.

During the execution of a search warrant at Hawkins’ residence, over $200,000 in cash was seized. Hawkins used proceeds from her crimes to purchase high-end handbags and other luxury goods.

“Hawkins exploited the pandemic to defraud the State of Michigan and United States for her own personal gain,” said Acting US Attorney Mohsin.  “Our office continues to focus on identifying and prosecuting those individuals who seek to divert funds intended for those in need during what has been a very difficult period of unemployment.

“Facilitating a fraudulent scheme to enrich yourself and others by stealing unemployment compensation earmarked for pandemic assistance is a vicious crime,” stated Acting Special Agent in Charge Kelly Lewis. “IRS-Criminal Investigation will continue to seek justice on behalf of Michiganders across the state against those who defraud the UIA and Michigan workforce."

“Brandi Hawkins while employed as a contractor used her position to take advantage of the public and defraud the State of Michigan. She was able to manipulated the Michigan Unemployment Insurance Agency system for her and others’ personal gain. We will continue to work with our law enforcement partners throughout Michigan to bring criminals like Hawkins to justice,” said Douglas J. Zloto, Special Agent in Charge, U.S. Secret Service, Detroit Field Office.

“Brandi Hawkins abused her position as an Unemployment Insurance Examiner for the State of Michigan Unemployment Insurance Agency to release payment on $3.8 million in fraudulently filed unemployment insurance claims in exchange for bribes. Hawkins approved claims that, if disbursed in full, would have resulted in the fraudulent payout of over $12 million earmarked for Pandemic Unemployment Assistance.  We will continue to work with our law enforcement partners to protect the integrity of unemployment insurance benefit programs," stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

"Brandi Hawkins used her position to approve fraudulent unemployment claims and divert money desperately needed by those who lost jobs as a result of the pandemic," said Timothy Waters, Special Agent in Charge of the FBI's Detroit Division. "The FBI will continue to work with our federal law enforcement partners to protect the integrity of these vital federal assistance programs."

“U.S. Postal Inspectors are federal law enforcement agents who conduct investigations of postal-related crime, including any fraud in which the postal system is used, in an effort to ensure America’s confidence in the U.S. Mail. Investigating violations of more than 200 federal laws, the Postal Inspection Service seeks to leverage relationships with our law enforcement partners and enforce these statutes to the maximum extent possible against those aiming to utilize the U.S. Mail in furtherance of illicit activities and criminal schemes. I commend the partnership, hard work, and countless hours put forth by all agencies involved in bringing this investigation to a successful resolution,” said Juan Vargas, Acting Postal Inspector in Charge of the Detroit Division

“People who willfully commit unemployment insurance fraud should know that the State of Michigan and the Unemployment Insurance Agency are serious about identifying and holding them accountable for their actions,” said Liza Estlund Olson, acting director of the Unemployment Insurance Agency.  "Through the great work of our federal and state partners along with UIA investigators, we’re are working to root out fraudulent schemes like this one and protect unemployment benefits for those who are legitimately entitled to them.”

The case is being prosecuted by Assistant United States Attorney Timothy Wyse. The investigation was  conducted jointly by the Department of Labor, Office of Inspector General, United States Secret Service, Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, the U.S. Postal Inspection Service and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity.

DETROIT - A Lathrup Village doctor was sentenced today to 120 months in federal prison on charges of conspiracy and unlawful controlled substance distribution, Acting United States Attorney Saima Mohsin announced.  Afzal Beemath was also ordered to pay $20,000. fine

Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office.

Sentenced was Dr. Afzal Beemath, 45.

According to court records, Dr. Afzal Beemath pleaded guilty on September 30, 2019 to twenty (20) counts charged in a first superseding indictment, involving a conspiracy to illegally distribute highly addictive opioids.  The evidence revealed that from January 2013 through October 2018, Beemath, who owned and operated Afzal Beemath, M.D., P.C., which was marketed as a palliative care clinic in Lathrup Village, Michigan, prescribed thousands of dosages units of controlled substances, including Oxycodone, and Oxymorphone.  Beemath issued these prescription drugs outside the course of professional medical practice and without any legitimate medical need for the drugs so that they could be sold on the illegal street market. 

Oxycodone and Oxymorphone are two of the most diverted controlled substances in our area.  They are extremely powerful, addictive and in the opioid class that is easily abused, and can lead to addiction and eventual heroin use.  Michigan has seen devastating statistics relating to opioid drug overdoses in the last five years.

This case was prosecuted by Assistant United States Attorneys Regina R. McCullough and Brandy R. McMillion as part of the district’s efforts to address the nation’s opioid crisis.  The Eastern District of Michigan is one of twelve districts included in the Attorney General’s Opioid Fraud Abuse and Detection initiative.  The case was investigated by special agents of the Federal Bureau of Investigation and the U.S. Department of Health and Human Services Office of Inspector General.

 

DETROIT - An indictment was unsealed today charging the owner and operators of a medical clinic, a doctor, a patient recruiter, and two clinic employees with conspiracy to illegally distribute prescription drugs, and other opioid-related charges, Acting U.S. Attorney Saima Mohsin announced today.

Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division, and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office.

Charged in the indictment are:

Janeice Minique Burrell, 36, of Macomb;

Angelo Martese Smith, 44, of Macomb;

Dr. Lawrence Mark Sherman, 72, of Shelby Township;

Peter Burrell, Jr., 52, of West Bloomfield;

Akeyla Bell, 38, of Saint Clair Shores; and

Carmen Gilbreth, 36, of Detroit.

The indictment alleges that from March 2020 through June 2021, the clinic owner, operator, and a doctor conspired with the other defendants to issue and dispense a large number of prescription opioids for supposed “patients” who did not have a legitimate medical need for the drugs. Janeice Minique Burrell owned Tranquility Wellness Center, Inc. (“TWC”), and she and Angelo Martese Smith operated TWC first in Dearborn and currently in Saint Clair Shores, Michigan.

Out of that clinic, Dr. Sherman primarily prescribed Oxycodone and Oxymorphone, two of the most addictive opioids that have high street value. Janeice Burrell and Smith accepted only cash at TWC, and charged patients not based on the service provided, but instead based on the quantity, type, and dosage of prescription opioids that the “patient” received. Janeice Burrell, Smith, and their employees Akeyla Bell and Carmen Gilbreth also charged cash for the creation of fraudulent medical records for the supposed “patients.” Janeice Burrell and Smith paid Dr. Sherman in cash or peer-to-peer money transfer application per controlled substance prescription he authorized.

Peter Burrell, Jr. was one of the patient recruiters/marketers who brought supposed “patients” to TWC to receive unlawful prescriptions from Dr. Sherman. Peter Burrell, Jr. would then fill the prescriptions and sell the prescriptions on the street at a significant profit.

Janeice Burrell, Smith, and Dr. Sherman also are charged with 14 counts of distributing Oxycodone and Oxymorphone pills.

According to the indictment, Dr. Sherman issued more than 441,000 dosage units of Schedule II opioid prescriptions during the course of the conspiracy.  These controlled substances had a conservative street value in excess of $6.6 million.

While most of the unlawful controlled substance prescriptions were paid for in cash, both controlled and non-controlled “maintenance” medications were billed to health care benefit programs by pharmacies. Billings to the Medicare and Medicaid programs for medically unnecessary prescription drug medications and maintenance medications during this conspiracy exceeded $85,000

“This indictment shows our continued commitment to investigate and charge those who fuel the opioid crisis in this state,” said Acting US Attorney Mohsin.  “This case is particularly troubling in that it involves greedy medical professionals who profited from prescribing and dispensing medically unnecessary drugs to individuals without regard to medical necessity.”

“The diversion of prescription pills into our communities perpetuates the current opioid crisis,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Division. “The FBI and its federal partners will continue to target doctors, pharmacists, and the networks that are fueling the epidemic by holding them accountable for their dangerous criminal behavior.”

“Dispensing prescription opioids to individuals who do not have a legitimate medical need is illegal and puts those individuals and others health and safety at risk,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG continues to work diligently with our law enforcement and prosecutorial partners to identify those who choose to violate the law and exacerbate the opioid epidemic.”

This case is being prosecuted by Assistant United States Attorneys Andrew J. Lievense and Alison Furtaw. The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that are contributing to the nation’s opioid crisis.

The case was investigated by special agents and task force officers of the Federal Bureau of Investigation and the Department of Health and Human Services-Office of the Inspector General.

An indictment is only a charge and is not evidence of guilt.  Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Gary Jones, the former President of the international United Auto Workers union, was sentenced to 28 months in prison today for conspiring with other UAW officials to embezzle UAW funds and to defraud the United States announced Acting U.S. Attorney Saima S. Mohsin.

Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Timothy Waters, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Kelly Lewis, Acting Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.

Gary Jones, 64, of Corsicana, Texas, was sentenced to 28 months in prison, $550,000 in restitution to the UAW, $42,000 restitution to the IRS, forfeiture of $151,377, two years of supervised release, and a $10,000 fine by United States District Judge Paul Borman based on his conviction for conspiring with former UAW President Dennis Williams and other senior UAW officials to embezzle UAW dues money and to defraud the United States through tax evasion between 2010 and September 2019.   

Between June 2018 and November 2019, Jones served as the President of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”).  The UAW represents over 400,000 active members and over 580,000 retired members in more than 600 local unions across the United States.  Prior to serving as UAW President, Jones was the Director of UAW Region 5 and a member of the UAW’s International Executive Board from October 2012 through June 2018.  The UAW’s Region 5 is headquartered in Hazelwood, Missouri, and covers the tens of thousands of UAW members in Missouri and the sixteen states to the southwest, including California and Texas.  Jones was the UAW President during the forty-day strike against the General Motors Company that took place in the fall of 2019.         

Jones stands convicted of conspiring with at least six other high-level UAW officials in a multi-year conspiracy to embezzle money from the UAW for the personal benefit of Jones and other senior UAW officials.  Jones and other UAW officials concealed personal expenditures in the cost of UAW Region 5 conferences held in Palm Springs, California, Coronado, California, and Lake of the Ozarks, Missouri.  Between 2010 and 2018, Jones and other UAW officials submitted fraudulent expense forms seeking reimbursement from the UAW’s Detroit headquarters for expenditures supposedly incurred in connection with Region 5 leadership and training conferences.  In truth, however, Jones and his co-conspirators used the conferences to conceal the hundreds of thousands of dollars in UAW funds spent on lavish entertainment and personal spending for the conspirators. 

Jones admitted that he and other senior UAW officials used the UAW money to pay for personal expenses, including golf clubs, private villas, cigars, golfing apparel, green fees at golf courses, and high-end liquor and meals costing over $750,000 in UAW funds.  For example, during the course of the conspiracy, Jones used UAW money to purchase over $60,000 in cigars and four sets of custom-made golf clubs for the use of high-level UAW officials.   

Besides admitting to using the UAW conferences to conceal the fraudulent use of UAW money for personal expenses, Jones also pled guilty to assisting in a conspiracy to embezzle UAW funds from the UAW’s Midwest CAP.  The UAW Midwest CAP is one of the UAW’s many Community Action Programs.  Jones admitted to accepting over $60,000 in cash from co-conspirator Edward Robinson who cashed over $500,000 in fraudulent UAW Midwest CAP checks and embezzled money from the UAW Labor Employment Training Corporation.       

Besides conspiring with other UAW officials to embezzle UAW funds, Jones pled guilty to conspiring with UAW officials to defraud the United States by impeding the Internal Revenue Service in the collection of taxes from Jones and other UAW officials.  The conspirators also caused the UAW to file false tax returns with the IRS. 

As part of the court’s sentence, Jones was ordered to forfeit $31,000 in cash, a custom-made set of Titleist golf clubs, and various golf clothing and equipment seized from Jones during an August 2019 search of his residence in Canton, Michigan.  In addition, Jones has been ordered to pay $550,000 in restitution to the UAW and $42,000 in restitution to the Internal Revenue Service.  Finally, the Court ordered Jones to forfeit $83,613 held in Jones’ “Flower Fund” account and $38,644 from Jones’ Members in Solidarity account.  Co-defendant Edward Robinson was ordered to pay restitution of $300,000 to the UAW, and co-defendant Dennis Williams paid $132,000 in restitution to the UAW.  It is expected that co-defendant Vance Pearson will owe $250,000 in restitution.    

Because Jones provided substantial assistance in the investigation of other individuals and entities, the United States sought a lower prison sentence for him.       

Jones is the sixteenth defendant convicted in connection with the ongoing criminal investigation into corruption within the UAW or relating to illegal payoffs to UAW officials by FCA executives.  The following other individuals have already pleaded guilty to their participation in the scheme and have been sentenced:  former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), former senior UAW official Michael Grimes (28 moths), former UAW Midwest CAP President Edward “Nick” Robinson (12 months in prison), former UAW Vice President Joseph Ashton (30 months), and former UAW President Dennis Williams (21 months).  In addition, the following UAW official has pleaded guilty and is awaiting sentencing:  former UAW Region 5 Director UAW Board member Vance Pearson.  The company, FCA US LLC, now known as Stellantis, pleaded guilty in January 2021 to conspiring to violate the Taft-Hartley Act, and the company will be sentenced on June 21, 2021.  Former senior UAW official Jeffrey “Paycheck” Pietrzyk passed away before being sentenced.

In December 2020, the United States filed a civil lawsuit against the UAW under the Anti-Fraud Injunction Act based on the criminal investigation of the UAW, FCA US LLC, and FCA’s executives.  Subsequently, the United States and the UAW entered into a Consent Decree to settle the lawsuit that was approved by the U.S. District Court.  The Court has appointed attorney Neil Barofsky to serve as the Independent Monitor of the UAW for the next six years.  The Monitor is tasked with providing federal oversight of the UAW concerning fraud, corruption, and misconduct within the UAW.  In addition, the Monitor will conduct and oversee a referendum of all UAW members to determine if the membership wants to adopt a direct election, also known as “one member, one vote,” method of electing the members of the UAW’s International Executive Board.             

Acting U.S. Attorney Mohsin commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.

“The fact that two former international UAW Presidents will be going to prison after being convicted of embezzling UAW dues money demonstrates that no one is above the law,” said Acting United States Attorney Saima S. Mohsin.  “The working men and women of the UAW can feel that justice was done, and that their union is on the road to reform.” 

“Instead of serving the interests of the hard-working men and women of the UAW, Jones conspired with senior UAW officials to embezzle more than $1 million in union funds. Jones spent the embezzled funds on extravagant meals, liquor, golf, and personal travel. We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations," stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

“Unions can only be effective if members trust their leadership to work in the best interest of the entire union. Gary Jones and the fifteen leaders convicted over the course of this investigation were clearly unworthy of that trust,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Field Office. “While this investigation is one step closer to its conclusion, the FBI and our federal partners will remain vigilant in our efforts to expose those who participate in this type of corrupt behavior and bring them to justice.”

“Gary Jones failed to act with integrity as President of the UAW, he stole from the UAW’s membership and attempted to negatively impact the integrity of the U.S. tax system.  Today’s sentence holds Jones accountable for his actions,” said Kelly Lewis, Acting Special Agent in Charge, IRS Criminal Investigation, Detroit Field Office.  “IRS-Criminal Investigation is dedicated to protecting the integrity of our tax system and working with our law enforcement partners to protect the financial integrity of corporations and labor organizations."

“With today’s sentencing, Gary Jones has solidified his legacy at the UAW as one who chose to abuse his position of trust to enrich himself and other high ranking UAW officials who together conspired to embezzle more than $1 million from the UAW instead of working towards improving the working conditions of his fellow UAW members,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “While the vast majority of union officials do their work diligently and without incident, OLMS will continue to work with its law enforcement partners to hold accountable anyone that unlawfully exploits their union position to enrich themselves without regard to the best interests of union members.” 

The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Steven Cares, and Adriana Dydell.

BAY CITY – Brittan J. Atkinson, 54 of Beaverton, was sentenced today to one year and one day in federal prison for sending threatening communications to a Washington, D.C. attorney, announced Acting United States Attorney Saima Mohsin.

Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit, Michigan.

Atkinson was sentenced by United States District Judge Thomas Ludington in Bay City, Michigan

According to court records, on November 7, 2019, Atkinson knowingly and willingly sent an email via the internet to an attorney in Washington, D.C. known to represent a federal whistleblower. The email contained threats to harm the victim stating, “[a]ll traitors must die miserable deaths” and “[t]hose that represent traitors shall meet the same fate[.]” Atkinson told the attorney, “we will hunt you down and bleed you out like the pigs you are.”  Atkinson’s threat continued, “[k]eep looking over your shoulder, we know who you are, where you live, and who you associate with, we are all strangers in a crowd to you[.]” Upon receiving the threat, the attorney contacted the FBI who immediately began an investigation and identified Atkinson as the sender of the email. Atkinson was arrested pursuant to an indictment in February 20, 2020.  On December 1, 2020, Atkinson pleaded guilty to making an interstate communication of a threat to injure. 

“The actions in this case are very alarming,” stated Acting US Attorney Mohsin.  “Once free speech crosses the line and becomes a threat, you can rest assured that the full extent of the law will be brought to bear.  No one should be threatened for simply doing their job.”

"This sentence should send a message that you cannot hide behind a computer keyboard and make threats against another person with impunity," said Timothy Waters, Special Agent in Charge of the FBI in Michigan. "The First Amendment does not protect those who threaten violence against another person. Those threats are taken seriously, will be fully investigated, and people will be held accountable."

This case was investigated by special agents of the FBI and was prosecuted by Assistant United States Attorney Anthony Vance.

FLINT - Doniel “50” Heard, 38 of Canton, Talasha “First Lady Red” Willis 31 of Flint, Kimberly “Boss Lady Red” Perryman, 34 of Mt. Morris, and Alina “Mimi Red” White, 23 of Flint were sentenced for the vicious beating of a 15-year old boy, announced Acting United States Attorney Saima S. Mohsin. 

Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters of the Federal Bureau of Investigation, Detroit Division (FBI), Phil Hart, Chief of Police of the Genesee Township Police Department, and David S. Leyton, Genesee County Prosecuting Attorney. 

Heard, Willis, Perryman, and White previously pleaded guilty to assault with a dangerous weapon in aid of racketeering before United States District Judge Linda V. Parker.  Willis also pleaded guilty to interference with commerce by robbery.

According to court documents, Heard, an admitted leader of a Michigan set of the national Bloods street gang, Perryman, Willis, and White believed the 15-year old boy had disrespected two fellow gang members.  As a result, the group punched, kicked, and stomped the 15-year old boy.  They then beat him with a broom stick and robbed him.  After the beating, Perryman, Willis, and White held the boy down while Heard used a large knife to carve the name of the local Bloods set, “MOB 662,” into the boy’s chest.  After carving MOB 662 into the boy’s chest, Heard placed video calls via his cell phone to other gang members bragging about the assault and showing them his “artwork.”  The 15-year old victim suffered permanent bodily injury as a result of the assault. 

Willis was sentenced by Judge Parker on May 20, 2019, to 100 months in federal prison. 

The remaining defendants were sentenced today. Heard, who Judge Parker determined to be a career offender based upon this prior record, was sentenced to 240 months in federal prison. Judge Parker sentenced Perryman to 80 months in federal prison, and White to 36 months in federal prison.

“This brutal and senseless act of violence on a 15-year old boy by gang members is appalling, and it is precisely the type of crime that we are committed to rooting out,” stated Acting United States Attorney Mohsin. “We intend to bring the full force of federal law upon gang members who are harming our youth and destroying our communities.”

"The FBI is dedicated to working with all of our partners to most effectively target gang violence no matter the form it takes,' said Timothy Waters, Special Agent in Charge of the FBI in Michigan. "Our focus is on disrupting and dismantling the criminal enterprises who are increasingly emphasizing committing extremely violent criminal acts such as those conducted by the individuals sentenced in this case. Neighborhood gangs pose the biggest threat to communities across the United States. With continued effort and resources focused on mitigating that threat, law enforcement can deliver justice for crimes committed in our communities and against U.S. citizens."

The case was investigated by the Genesee Township Police Department and special agents of the FBI, with assistance from the Genesee County Prosecutor’s Office.  The case was prosecuted by Assistant United States Attorneys Chris Rawsthorne, Ann Nee, and Anthony Vance.

A Detective with the Highland Park Police Department and her co-conspirator  were charged in a criminal complaint with distributing and conspiring to distribute fentanyl-laced heroin, Acting United States Attorney Saima S. Mohsin announced today.

Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation.

Tiffany Lipkovitch, 45, of Detroit, and Amber Bellamy, 38, of Detroit, stand charged with distribution and conspiring to distribute controlled substances. Lipkovitch is a detective with the Highland Park Police Department, where she has been a police officer since 2011. According to the complaint, federal agents recorded numerous calls and meetings between Lipkovitch and a confidential source about a drug transaction. Lipkovitch gave the source “samples” or “pictures” of the drugs that were available from her associate, Bellamy, explaining that one was “$80 a gram” and the others were $100 per gram. When Lipkovitch asked what they were diluting or “cuttin” the drugs with, the confidential source responded that people used “fentanyl.” This did not surprise Lipkovitch, who explained that Bellamy was getting “a package of fentanyl . . . from overseas.” Lipkovitch eventually introduced the confidential source to Bellamy, who sold the source 45 grams of a fentanyl / heroin mixture. The confidential source later met with Lipkovitch, who was on duty and in her police uniform, about the transaction, and gave her $300 for facilitating the drug deal.

Acting United States Attorney Mohsin stated, “These charges affirm our office’s commitment to hold all individuals accountable for the distribution of dangerous drugs like heroin and fentanyl.”  And, “While the vast majority of our police officers work honorably and faithfully to protect and serve the citizens of this region, our office continues to prosecute those corrupt officers who put their own greed above the public good and abuse their position violate the law.”

Highland Park Mayor Hubert Yopp stated, “We do not condone this type of activity. The citizens of Highland Park have expectations, as they should, that law enforcement officers obey the laws they swore to enforce. Like anyone else in the community, if a person violates the law they should be brought to justice.”

DEA Detroit Special Agent in Charge Keith Martin stated, “While the vast majority of law enforcement officers are honest and hardworking, this officer chose to push a deadly drug onto our streets in exchange for personal profit. We are committed to working with our partners to ensure these individuals are rooted out and brought to justice.”

"The arrests this morning by state and federal agents are an example of the law enforcement community's joint effort in prosecuting police officers that abuse their authority and abandon their oath to serve and protect our communities," said Special Agent in Charge Timothy Waters, Detroit Division of the FBI. "Today shows the commitment of law enforcement to root out police corruption and abuse of authority within its ranks. The officer's betrayal of her sworn duty should not diminish the exemplary work conducted every day by the men and women in law enforcement. This case is an example of the importance the criminal justice system places on prosecuting its own who have abused their positions of trust in dereliction of duty."

The South Oakland Narcotics Intelligence Consortium (SONIC) task force assisted in the investigation. SONIC is a task force of local police departments. The Michigan State Police will continue to provide resources to multi-agency task forces consisting of federal and local partners” stated Michigan State Police F/Lt. Michael Shaw, Second District Public Information Officer. “While any criminal activity is detrimental to our communities, it is far worse when the alleged suspect is a police officer.”

Upon conviction for a violation of Title 21, United States Code, Sections 841 or 846, Lipkovitch and Bellmany face a maximum of twenty years in prison and a fine of up to $1,000,000.   

A criminal complaint is only a charge and is not evidence of guilt.

The case was investigated by the FBI Detroit Area Public Corruption Task Force, in collaboration with the SONIC task force and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Steven Cares.

DETROIT – A Detroit man was arrested and charged with being a Felon in Possession of a Firearm, and Possession of a machine gun, announced Acting United States Attorney Saima Mohsin.

Mohsin was joined in the announcement by Special Agent in Charge James Deir, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

Charged was Delmarco Craig, 22. Craig is a prior convicted felon and is prohibited from possessing firearms.

According to the criminal complaint and information provided during a court hearing,  ATF agents began an investigation into Craig for the illegal possession of firearms.  As part of that investigation, agents reviewed an Instagram account utilized by Craig where he would post photographs and live stream videos.  In those photographs and videos, Craig is seen posing with several different firearms, including a Glock pistol equipped with a Glock conversion device which, when affixed to a Glock pistol, converts the firearm from a semi-automatic pistol to a fully automatic machine gun. 

According to testimony provided during a court hearing, agents executed a federal search warrant at Craig’s residence where they recovered the Glock equipped with a Glock conversion device and six other firearms, two of which were stolen.  One of the firearms recovered was a tan and black Palmetto State Armory 5.56 caliber AR rifle with an obliterated serial number partially covered by a black Skull decal.  On May 25, 2021, CRAIG streamed an Instagram Live Video in which CRAIG brandishes what appears to be the same rifle.  Using the National Integrated Ballistic Information Network (NIBIN), agents were able to connect the firearm to seven (7) shootings since October 2020, including a homicide and double non-fatal shooting on May 25, 2021 at approximately 11:20 pm in the area of 8576 Strathmoor Street in Detroit, Michigan (several hours after the live video).  Additionally, NIBIN connected the rifle to a shooting at a CVS on Grand River Avenue on April 16, 2021 in which surveillance video captured the suspect vehicle as a newer model white escalade with black tires and rims and a black grill.  During the search warrant at Craig’s residence, agents recovered a stolen 2021 White Cadillac Escalade from the backyard containing a purple LA Dodgers hat frequently worn by CRAIG on Instagram. 

“This case highlights how NIBIN is a proven investigative and intelligence tool that allows law enforcement to link firearms from multiple crimes scenes allowing law enforcement to quickly disrupt shooting cycles,” said Acting US Attorney Mohsin.  “Criminals should take notice that law enforcement stands ready to remove those terrorizing our neighborhoods.”

“Every trigger-puller in Detroit should be put on notice.  Gun Violence in our community will not be tolerated and those who choose to use a firearm to commit any type of violent act will be held to account for their misdeeds,” said Special Agent in Charge James Deir. “NIBIN is the linchpin for ensuring accountability in eradicating gun violence.”

Craig is charged with being a felon in possession of a firearm and possession of a machinegun.   If convicted, Craig faces a statutory maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

This case is being investigated by special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorneys Robert VanWert and Trevor Broad.

A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

DETROIT – A Hartford, Connecticut man was sentenced today to 120 months in prison on child exploitation charges, announced Acting United States Attorney Saima Mohsin.

Mohsin was joined in the announcement by Special Agent in Charge Vance Callender, Homeland Security Investigations (HSI).

Sentenced was Joshua Depriest, 32.  Depriest pleaded guilty on December 18, 2019 before U.S. District Judge Judith Levy to online enticement of a minor.

According to court records, in October, 2018, Depriest communicated through Facebook Messenger (an online social media service) with an 7-year-old boy and repeatedly asked the minor victim to send sexually explicit photos of himself.  Depriest admitted to soliciting explicit videos and photos of the minor victim, as well as to soliciting and obtaining explicit videos and photos from 20 to 30 other boys, 8 to 9 years of age. Depriest also distributed child pornography to his trading partners on the internet.

“This defendant is a dangerous sexual predator whose exploitation of boys as young as 7 years old using social media platforms like Facebook Messenger is particularly despicable. The Department of Justice is committed to the safety and well-being of the most vulnerable members of our society – our children,” stated Acting US Attorney Mohsin.

“As our children spend increasingly more time online, they are increasingly vulnerable to predators who lurk in the supposed anonymity of the Internet,” said Vance R. Callender, HSI Special Agent in Charge for Michigan and Ohio.  “This case underscores HSI’s commitment to work with its law enforcement partners, not only to arrest offenders but also bring justice to the victims- especially children.”

This case was investigated by agents of the HSI with the assistance of the Taylor Police Department.  Assistant U.S. Attorney Lisandra Fernandez-Silber prosecuted the case.

 

 

DETROIT– Acting United States Attorney Saima S. Mohsin announced that U.S. District Judge David Lawson has issued an order today appointing Neil Barofsky to be the Independent Monitor over the United Auto Workers Union (UAW) pursuant to the terms of the Consent Decree entered by the Court.

U.S. District Judge Lawson has previously entered a Consent Decree following the filing by the United States of an anti-corruption and anti-fraud civil lawsuit against the UAW in federal district court seeking equitable relief to bring about reform and oversight of the union.  Under the Consent Decree, the United States proposed attorney Neil Barofsky to act as the Independent Monitor providing oversight of the UAW for a period of six years.  The Monitor has the power to oversee the operations of the UAW, to investigate possible fraud or corruption within the union, and to impose discipline on UAW officers and members before an Independent Adjudications Officer also appointed by the Court.  The Monitor will oversee, in conjunction with the Department of Labor, a binding and secret-ballot referendum of the UAW’s membership to determine whether to change the UAW’s election method from the current delegate system to a direct election model, also known as “one member, one vote,” where the entire UAW membership could vote for the UAW President and the other members of the UAW’s International Executive Board.  The referendum will take place within six months of today. 

Neil Barofsky is a partner at the law firm of Jenner & Block, where he leads the firm’s monitorship practice.  Mr. Barofsky was a federal prosecutor for thirteen years in the Southern District of New York.  Mr. Barofsky was also appointed and served as the Special Inspector General for the Troubled Asset Relief Program, an anti-fraud investigative agency that Mr. Barofsky built from scratch.  In addition, Mr. Barofsky has previously served as the Independent Monitor of Credit Suisse Securities LLC and Credit Suisse AG, following billion dollar settlements.  Mr. Barofsky’s team includes Jenner & Block partner Reid J. Schar, who previously served as a federal prosecutor in Chicago, where he prosecuted former Illinois Governor Rod Blagojevich.  Mr. Barofsky will also be assisted by Glen McGorty, a partner in the law firm of Crowell & Moring and a former federal prosecutor.  Mr. McGorty has served as the Independent Monitor overseeing the New York City District Council of Carpenters labor union, which included oversight of direct union elections.          

“The men and women of the UAW deserve honest and faithful leaders dedicated to serving the best interests of the membership,” said Acting U.S. Attorney Mohsin.  “We believe that oversight by an Independent Monitor will help to ensure that the rights and interests of the UAW’s membership are protected.  I am confident that Neil Barofsky will provide tough but fair oversight of the UAW.”   

Dennis Williams, the former President of the international United Auto Workers union, was sentenced to twenty-one months in prison today for conspiring with other UAW officials to embezzle UAW funds announced Acting U.S. Attorney Saima S. Mohsin.

Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Timothy Waters, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Kelly Lewis, Acting Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.

Dennis Williams, 67, of Corona, California, was sentenced to twenty-one months in prison, $132,000 in restitution, one year of supervised release, and a $10,000 fine by United States District Judge Paul Borman based on his conviction for conspiring with former UAW President Gary Jones and other senior UAW officials to embezzle UAW dues money between 2010 and September 2019.   

Between June 2014 and June 2018, Williams served as the President of the International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America (“UAW”).  The UAW represents over 400,000 active members and over 580,000 retired members in more than 600 local unions across the United States.  Prior to serving as UAW President, Williams was the Secretary-Treasurer of the UAW from June 2010 through June 2014.       

Williams was convicted of conspiring with at least six other senior UAW officials in a multi-year conspiracy to embezzle money from the UAW for the personal benefit of himself and other senior UAW officials.  UAW officials concealed hundreds of thousands of dollars in personal expenditures in the cost of UAW conferences held in Palm Springs, California, Coronado, California, and Missouri.  Between 2010 and 2018, former UAW President and co-defendant Gary Jones and other UAW officials submitted fraudulent expense forms seeking reimbursement from the UAW’s Detroit headquarters for expenditures supposedly incurred in connection with UAW leadership and training conferences.  In truth, however, Williams and his co-conspirators used the conferences to conceal the hundreds of thousands of dollars in UAW funds spent on lavish entertainment and personal spending for the conspirators. 

As part of his conviction, Williams admitted the he and other senior UAW officials used UAW money to pay for personal expenses, including multi-month long stays at private villas in Palm Springs, cigars, golfing apparel, green fees at golf courses, and high-end liquor and meals.  During the course of the conspiracy, while Williams was UAW President, co-conspirators Gary Jones, Vance Pearson, and others provided themselves and Williams with thousands of dollars in such personal items.    

As part of the court’s sentence, Williams was ordered to forfeit a custom-made set of Titleist golf clubs and various golf clothing and equipment seized from Williams during an August 2019 search of his residence.  In addition, Williams has been ordered to pay $15,459 in restitution to the Internal Revenue Service on embezzled items that he personally received.  Finally, the Court ordered Williams to pay $132,517 in restitution to the UAW.      

Williams is the sixteenth defendant convicted in connection with the ongoing criminal investigation into corruption within the UAW or relating to illegal payoffs to UAW officials by FCA executives.  The following other individuals have already pleaded guilty to their participation in the scheme and have been sentenced:  former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), former senior UAW official Michael Grimes (28 moths), former UAW Midwest CAP President Edward “Nick” Robinson (12 months in prison), and former UAW Vice President Joseph Ashton (30 months).  In addition, the following UAW officials have pleaded guilty and are awaiting sentencing:  former UAW President Gary Jones and former UAW Region 5 Director UAW Board member Vance Pearson.  FCA US LLC pleaded guilty in January 2021 to conspiring to violate the Taft-Hartley Act, and the company will be sentenced in June 2021.  Former senior UAW official Jeffrey “Paycheck” Pietrzyk passed away before being sentenced.

In December 2020, the United States filed a civil lawsuit against the UAW under the Anti-Fraud Injunction Act based on the criminal investigation of the UAW, FCA US LLC, and FCA’s executives.  Subsequently, the United States and the UAW entered into a Consent Decree to settle the lawsuit that was approved by the U.S. District Court.  The United States has proposed a candidate to the Court to serve as the Independent Monitor of the UAW for the next six years.  The Monitor is tasked with providing federal oversight of the UAW concerning fraud, corruption, and misconduct within the UAW.  In addition, the Monitor will conduct and oversee a referendum of all UAW members to determine if the membership wants to adopt a direct election, also known as “one member, one vote,” method of electing the members of the UAW’s International Executive Board.             

Acting U.S. Attorney Mohsin commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.

“The Court’s sentence for former UAW President Williams demonstrates that the very highest level of leadership of the UAW has been held accountable for betraying the trust of the UAW’s membership,” said Acting United States Attorney Saima S. Mohsin.  “Today’s sentence sends a strong message that union leaders must strictly adhere to the highest ethical standards in running their unions.” 

"Instead of serving the interests of the hard-working men and women of the UAW, Dennis Williams conspired with senior UAW officials to embezzle over $1 million in union funds. Williams spent the embezzled funds on extravagant meals, liquor, golf, and travel for personal enrichment. We will continue to work with our law enforcement partners to investigate corrupt union officials who betray the union members they are entrusted to represent,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

"Today's sentencing is one more step in a long campaign of restoring the UAW to working for the rights of its members," said Timothy Waters, Special Agent in Charge of FBI Detroit. "Williams' sentencing is another chapter closed in a culture of corruption that permeated the UAW to the very top. We will continue to work alongside our partners in law enforcement to root out wrongdoing and end pervasive greed among those who abuse their positions of power for their own enrichment."

“Today’s sentencing is another step towards the honest leadership UAW members deserve,” stated Kelly Lewis, Acting Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigation.  IRS Criminal Investigation is fully committed to investigating anyone who intentionally conceals income from the IRS.”

“Safeguarding financial integrity in labor unions and combating financial malfeasance is a very high priority for the U.S. Department of Labor. While the vast majority of union officials do their work diligently and without incident, Dennis Williams betrayed the trust the UAW membership placed in him and embezzle hundreds of thousands of dollars from the UAW, so he could live a lavish lifestyle at the expense of the UAW and its members,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “OLMS will continue to work with its law enforcement partners to hold accountable anyone that unlawfully exploits their union position to enrich themselves without regard to the best interests of union members.”

The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Steven Cares, and Adriana Dydell.

DETROIT– A  49-year-old man and convicted felon was arraigned today in federal court in Detroit on charges stemming from a bank robbery in Ypsilanti, Michigan, announced Acting United States Attorney Saima Mohsin.

Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division and Matthew E. Harshberger, Director of Public Safety, Pittsfield Township Police Department.

Arraigned was Ken Kenyatta Wilson, formerly of Cleveland, Ohio.

According to court records, on March 23, 2021, at approximately 1:22 p.m., Wilson, wearing a gray coat and black pants and carrying a white bag, entered a Chase Bank branch, located at 4101 E. Ellsworth Road in Ypsilanti, Michigan, approached a victim teller, informed her this was a robbery, and demanded that she give him all the money she had.  The teller, fearing for her safety, handed Wilson $1,000 in currency.  Wilson then fled the bank and entered a red vehicle. Wilson, upon seeing a Pittsfield Township police vehicle, fled the area at a high rate of speed.  A vehicle pursuit followed at speeds approaching 100 mph. The chase eventually came to an end with Wilson crashing into a median on US-23 North, causing him to be ejected from the vehicle.  Wilson was taken into custody by Pittsfield Township Police Department officers and transported to a local hospital for injuries sustained in the crash. From the crash scene and vehicle, officers recovered a black semi-automatic handgun with an extended magazine, a silver revolver, a rifle, multiple loaded magazines, and a bag containing $1,000, consistent with the reported loss from Chase Bank, among other items.

If convicted, Wilson faces a statutory maximum penalty of 20 years in prison for bank robbery, a mandatory minimum of 5 years in prison for carrying and using a firearm during and in relation to a crime of violence, and a mandatory minimum of 15 years in prison for being a felon in possession of a firearm pursuant to the Armed Career Criminal Act.  A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

This case is being investigated by special agents of the FBI along with the assistance of the Pittsfield Township Police Department.  Assistant U.S. Attorney Jessica Currie is prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

###

 

DETROIT – Three Detroit men have pleaded guilty for their role in the carjacking of a Lyft driver, announced Acting United States Attorney Saima Mohsin.

Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division.

Pleading guilty were Marquel Bazemore, 20, Jesse Evans, 21 and Joseph Shade-Hubbard, 21.  The three are scheduled to be sentenced before United States District Judge Nancy Edmunds on July 28 (Bazemore) and September 27, 2021.  Each face up to 15 years in federal prison.

According to court documents, on August 9, 2019, Bazemore, Evans, and Shade-Hubbard ordered a Lyft (ride-sharing service) through the Lyft mobile application. At approximately 4 a.m. on that day, the Lyft driver (victim) picked up the defendants in a Cadillac Escalade from the area of 8 Mile and 75 in the city of Detroit. The defendants entered the victim’s vehicle and were driven to the area of Mark Twain and Lyndon in Detroit. As the victim attempted to drop the defendants off, defendants Bazemore and Shade-Hubbard exited the Cadillac and began punching the victim.  Evans was the front seat passenger, and he (Evans) pulled out a firearm, pointed the firearm at the victim and demanded that he give him everything he had. Bazemore and Shade-Hubbard began going through the victim's pockets and took his wallet, credit cards, and money.

This case was investigated by special agents of the FBI and is being prosecuted by Assistant US Attorney Jeanine Brunson.

DETROIT— In honor of National Police Week, Acting U.S. Attorney Saima Mohsin recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.

“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”

“On behalf of the United States Attorney’s Office for the Eastern District of Michigan, we salute the men and women in blue who risk their lives each and every day to keep the citizens of Michigan safe,” said Acting US Attorney Mohsin.  “We are profoundly grateful to you for your dedication and commitment to protect and serve, and we commend you for your unwavering bravery and courage when confronting danger to keep us out of harm’s way.”

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices.  Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.  

Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.

During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored.  Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19. Here in the Eastern District of Michigan, eight officers died in the line of duty.  

Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020.  LEOKA statistics can be found on FBI’s Crime Data Explorer website. 

The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 PM EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.

Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF.

The FOP’s Roll Call of Heroes can be viewed at www.fop.net.

To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.  

To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.

 

###

 

 

Four Eastern European nationals have pleaded guilty to conspiring to engage in a Racketeer Influenced Corrupt Organization (RICO) arising from their providing “bulletproof hosting” services between 2008 and 2015, which were used by cybercriminals to distribute malware and attack financial institutions and victims throughout the United States.

According to court documents, Aleksandr Grichishkin, 34, and Andrei Skvortsov, 34, of Russia; Aleksandr Skorodumov, 33, of Lithuania; and Pavel Stassi, 30, of Estonia, were founders and/or members of a bulletproof hosting organization. The group rented Internet Protocol (IP) addresses, servers, and domains to cybercriminal clients, who used this technical infrastructure to disseminate malware used to gain access to victims’ computers, form botnets, and steal banking credentials for use in frauds. Malware hosted by the organization included Zeus, SpyEye, Citadel, and the Blackhole Exploit Kit, which rampantly attacked U.S. companies and financial institutions between 2009 and 2015 and caused or attempted to cause millions of dollars in losses to U.S. victims. A key service provided by the defendants was helping their clients to evade detection by law enforcement and continue their crimes uninterrupted; the defendants did so by monitoring sites used to blocklist technical infrastructure used for crime, moving “flagged” content to new infrastructure, and registering all such infrastructure under false or stolen identities.

“Every day, transnational organized cybercriminals deploy malware that ravages our economy and victimizes our citizens and businesses,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The criminal organizations that purposefully aid these actors — the so-called bulletproof hosters, money launderers, purveyors of stolen identity information, and the like — are no less responsible for the harms these malware campaigns cause, and we are committed to holding them accountable. Prosecutions like this one increase the costs and risks to cybercriminals and ensure that they cannot evade responsibility for the enormous injuries they cause to victims.”

“Fraud over the internet has had a major economic impact on our community, and all over our nation and the world,” stated Acting U.S. Attorney Saima S. Mohsin of the Eastern District of Michigan. “An essential part of reducing the fraud involves vigorously investigating and prosecuting individuals such as these ‘bulletproof hosters’ who enable the fraudsters in victimizing people over the internet.”

“Over the course of many years, the defendants facilitated the transnational criminal activity of a vast network of cybercriminals throughout the world by providing them a safe-haven to anonymize their criminal activity,” said Special Agent in Charge Timothy Waters of the FBI’s Detroit Field Office. “This resulted in millions of dollars of losses to U.S. victims. Today’s guilty plea sends a message to cybercriminals across the globe that they are not beyond the reach of the FBI and its international partners, and that anyone who facilitates or profits from criminal cyber activity will be brought to justice.”

According to court filings and statements made in connection with their guilty pleas, Grichishkin and Skvortsov were founding members of the organization and its proprietors. Skvortsov was responsible for marketing the organization’s criminal business and served as a point of contact for important and/or disgruntled clients, and Grichishkin was the organization’s day-to-day leader and oversaw its personnel. Skorodumov was one of the organization’s lead systems administrators, and at some points, its only systems administrator. In this role, he configured and managed the clients’ domains and IP addresses, provided technical assistance to help clients optimize their malware and botnets, and monitored and responded to abuse notices. Stassi undertook various administrative tasks for the organization, including conducting and tracking online marketing to the organization’s criminal clientele and using stolen and/or false personal information to register webhosting and financial accounts used by the organization.

Stassi, Skorodumov, and Grichishkin pleaded guilty in February and March 2021 to one count of RICO conspiracy. Skvortsov pleaded guilty today to the same charge. All four guilty pleas took place before Chief U.S. District Judge Denise Page Hood in the Eastern District of Michigan. Sentencing of Stassi, Skorodumov, Grichishkin, and Skvortsov has been set for June 3, June 29, July 8, and Sept. 16, respectively. Each defendant faces a maximum penalty of 20 years in prison. A federal district court judge will determine each sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI investigated the case with critical assistance from law enforcement partners in Germany, Estonia, and the United Kingdom.

Senior Counsel Louisa K. Marion of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Patrick E. Corbett of the Eastern District of Michigan prosecuted the case. The Justice Department’s Office of International Affairs provided substantial assistance.

DETROIT – A Novi man was charged in a criminal complaint with aggravated identity theft, mail fraud, wire fraud, and money laundering in a scheme to defraud the State of Michigan’s (SOM) Unemployment Insurance Agency (UIA), announced Acting United States Attorney Saima Mohsin.

Mohsin was joined in the announcement by Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General and Timothy Kolar, Administrator of the Michigan Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity.

Charged is Terrell Dwayne Mason, 39.

The criminal complaint alleges that Mason defrauded the State of Michigan’s Unemployment Insurance Agency by unlawfully using the identities of inmates in state and federal prison to file claims for Pandemic Unemployment Assistance benefits. To date, the investigation has shown that Mason allegedly filed over 40 fraudulent claims.  Mason allegedly used his relationship with a State of Michigan Unemployment Insurance employee to process the bad claims through the state’s UI system. The complaint further alleges that the claims resulted in payments of over $300,000 and would have paid over $800,000 if not detected by law enforcement.

Mason, who is on supervised release after serving a prison sentence for a prior federal conviction for conspiracy to commit wire and mail fraud, was tracked to and arrested by the United States Marshals Service in Oklahoma on a warrant for allegations he violated the terms of his release. Proceedings to address Mason’s alleged violations of supervised release are pending before United States District Judge Robert H. Cleland.

The criminal complaint is a result of an investigation by the United States Department of Labor – Office of Inspector General and the Federal Bureau of Investigation. This case is being prosecuted by Assistant U.S. Attorney Mark Chasteen.

A complaint is only a charge and is not evidence of guilt.  Trial cannot be held on felony charges in a complaint.  When the investigation is completed, a determination will be made whether to seek a felony indictment.

###

An Allen Park resident was arrested today in connection with a federal criminal complaint charging him with obtaining unemployment benefits authorized by the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act by means of false and fraudulent pretenses and representations, by using the personally identifiable information of others that he had unlawfully obtained, announced Acting United States Attorney Saima S. Mohsin.

Joining in the announcement were Special Agent in Charge Irene Lindow, U.S. Department of Labor’s Office of Inspector General, Special Agent in Charge Sarah Kull, IRS-Criminal Investigation, Special Agent in Charge Douglas Zloto, U.S. Secret Service, and Acting Director Liza Estlund Olson, Michigan Unemployment Insurance Agency (UIA).

Charged in the criminal complaint is Christopher Dominic Niebel, 43, of

Allen Park, Michigan. The affidavit supporting the complaint states that Niebel was responsible for or associated with over 100 fraudulent unemployment insurance accounts. The total amount of unemployment benefits paid through those fraudulent accounts by the Michigan Unemployment Insurance Agency (UIA) from March through August 2020 was approximately $849,000.00. Niebel was the accountholder on at least 28 of the bank accounts to which the unemployment benefits were electronically transferred. These benefits included regular unemployment benefits but were mostly pandemic-related unemployment benefits provided through the CARES Act.

The complaint affidavit also relates that Niebel held himself out as a tax preparer under the name “Tax Guy Chris” with an office in Allen Park.

A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.

The case is being prosecuted by Assistant United States Attorney Stephen Hiyama. The investigation is being conducted jointly by the U.S. Department of Labor’s Office of Inspector General, IRS-Criminal Investigation, the U.S. Secret Service, and the Michigan UIA.

A criminal complaint was unsealed today charging a Macomb Township man in a wire fraud scheme involving the trafficking in Fiat Chrysler Automobiles Employee Purchase Control Numbers (EPCNs), announced Acting United States Attorney Saima Mohsin. 

Mohsin was joined in the announcement by Special Agent in Charge Vance Callender, Homeland Security Investigations (HSI), Michigan and Ohio

Charged is Apollon Nimo, 34.  Nimo made his initial appearance today before U.S. Magistrate Judge Anthony P. Patti and was released on bond.  A preliminary exam was set for May 21, 2021.

The criminal complaint alleges that Nimo, a salesman at Parkway Chrysler Dodge Jeep Ram in Clinton Township, improperly trafficked in, used, and sold FCA EPCNs to provide discounts to non-qualified car buyers from 2014 through the present.  The EPCNs were bought and sold through private Facebook Groups.  According to the complaint, it is alleged that some, if not most, of the sales conducted by Nimo included fraudulent use of EPCNs resulting in a loss to FCA of approximately $8.7 million dollars.  The complaint further alleges that Nimo profited both by selling the illegally obtained EPCNs to buyers and through bonuses FCA provided to him based on the volume of his sales. Nimo had the highest number of EPCN sales nationwide for the time period of May 2018 to August 2018 and January 2019 to March 2019.

“Automobile sales play a major role in our state’s economy,” said Acting US Attorney Mohsin. “Corruption of the sort alleged in today’s complaint imposes costs on automotive manufacturers that are ultimately passed to consumers. The charges announced today are serious and reflect my office’s commitment to ensuring the integrity of this market.”  

“This morning, HSI special agents arrested a top selling Fiat Chrysler Automobiles (FCA) salesman for defrauding the company of approximately $8.7 million by exploiting FCA’s employee purchase program,” said Vance Callender, HSI Special Agent in Charge for Michigan and Ohio.  “HSI will continue to fight financial crime and support the integrity of American manufacturing by leveraging its unique law enforcement capabilities.” 

A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

This case was investigated by the special agents of Homeland Security Investigations and the Clinton Township Police Department along with assistance from Fiat Chrysler Automobiles corporate investigators. Assistant U.S. Attorney Mark Chasteen is prosecuting the case.

 

         

## #

A former Assistant Superintendent of the Northville Public Schools (NPS) pleaded guilty to obstructing a federal investigation, Acting United States Attorney Saima S. Mohsin announced today.

Mohsin was joined in the announcement by Timothy Waters, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation (FBI).

Deanna Barash, 46, of Auburn Hills, stands convicted of obstructing a federal grand jury investigation. The FBI and the U.S. Attorney’s Office were conducting the investigation after they learned that Barash, then the Assistant Superintendent of NPS, approved a contract for NPS to purchase educational materials from a third-party without disclosing to NPS that she had a financial relationship with this party. After Barash left NPS, school officials learned about the contract and made Barash aware that they were reporting her actions to authorities. Barash then deleted certain emails between herself and the third-party from her private email account. In an interview, Barash lied to federal investigators about her actions. She originally claimed that she deleted the email messages only as part of her regular routine, but later admitted she deleted the messages because she learned she was under investigation and was attempting to keep investigators from seeing them.

Acting United States Attorney Mohsin stated, “Safeguarding the integrity of our public schools’ expenditures is of the utmost importance. We will continue to work with school systems when there are concerns of corruption or fraud related to the disbursement of their funds. Today’s guilty plea underscores our office’s commitment to hold people accountable for interfering with these and other federal investigations.”

“Deanna Barash used her position as the assistant superintendent of Northville Public Schools for her own financial gain, and then attempted to avoid accountability by destroying evidence of her wrongdoing,” said Timothy Waters, Special Agent in Charge of the FBI in Michigan. “The FBI is committed to preserving the public’s confidence in government at every level and will hold accountable any public official who undermines that confidence.”

Barash faces a maximum sentence of ten years in prison and a fine of up to $250,000 for violating of Title 18, United States Code, Section 1503, obstructing a federal grand jury investigation. Her sentencing is scheduled for August 25, 2021 at 11am.. 

Mohsin thanked the Northville Public Schools for its cooperation in the matter.

The investigation of this case was conducted by the of the FBI and the United States Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Steven Cares.

A federal grand jury returned an indictment today charging former Michigan resident Ylli Didani, 43, with conspiracy to distribute cocaine, announced Acting United States Attorney Saima S. Mohsin.

Mohsin was joined in the announcement by Special Agent in Charge Keith Martin, Drug Enforcement Administration, Detroit Division,  Christopher Perry, Director of Fields Operation, US Customs and Border Protection, Acting Special Agent in Charge Kelly Lewis, Internal Revenue Service-Criminal Investigations and Chief Jeff King, Farmington Hills Police Department.

Acting US Attorney Mohsin stated, “This is a very significant and important prosecution of a large scale, well-organized drug trafficking organization involved in the distribution of thousands of kilograms of cocaine worth tens of millions of dollars, across multiple continents.  I salute the entire law enforcement team who labored so tirelessly on this case, from prosecutors to police officers, federal agencies to local police departments.  Their efforts culminated in today’s indictment and demonstrate cooperation and teamwork at its best.”

Special Agent Martin stated, “This indictment of a major cocaine trafficker is the result of a joint investigation with law enforcement partners from around the globe.  Our combined efforts should send a clear message to drug traffickers everywhere that you will be held accountable for your crimes.”

Director Perry stated, “The complexity of this case, which involved so many law enforcement partners throughout the region is a testament to the importance of cooperation among agencies.  I’m proud of efforts of our CBP personnel, along with our federal, state, and local partners who played an important role in reaching this indictment.”

“Today’s indictment is a result of the hard work and dedication of our local and federal law enforcement partners.  IRS-CI will continue to provide our financial expertise to disrupt and dismantle international drug trafficking organizations,” said Internal Revenue Service – Criminal Investigation, Detroit Field Office, Acting Special Agent in Charge, Kelly Lewis.

Chief King stated, “This is an excellent example of the inter-agency cooperation and capabilities of our investigative taskforce. The Farmington Hills Police Department is extremely proud of our investigator and his tireless commitment toward disrupting and indicting a large scale-international drug trafficking organization.”

As alleged in the indictment, Didani and other unindicted co-conspirators planned and financed the distribution of cocaine from several locations including the Eastern District of Michigan. According to the Indictment, in two transactions that occurred in June 2016 and December 2017, Didani received at least $550,000 from other co-conspirators for the purpose of purchasing bulk cocaine.  Allegedly, Didani and other co-conspirators used several means of transportation, including private aircraft and commercial containerships, for purposes of obtaining and distributing the cocaine throughout Europe.

According to a criminal complaint that was unsealed on April 1, 2021, following Didani’s arrest on March 31, 2021 in Charlotte North Carolina, it is alleged that Didani was the leader of an international drug trafficking organization with ties to the United States, Mexico, South America, and Europe. The complaint also alleges that in 2017, a co-conspirator in Didani’s organization was overseeing the design of an underwater drone that would be utilized to transport large quantities of cocaine to Europe. The drone, which was going to be equipped with an underwater modem and GPS antenna, would transport the cocaine while attached to the bottom of a commercial containership. The drone would then be remotely released from the containership off the shore of Europe. The drone and cocaine would then be picked up by a fishing boat controlled by Didani’s organization.  

The criminal complaint further alleges that Didani arranged the distribution of several shipments of cocaine from South America to Europe, where the cocaine was seized by law enforcement. In 2019 and 2020, Law enforcement seized over 3400 kilograms of cocaine from Didani’s organization. The seized cocaine has a street value of over $100,000,000.00.

It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.

The case was investigated by the DEA (High Intensity Drug Trafficking Area (HIDTA) Group 6 consisting of both DEA Special Agents and Task Force Officers from Farmington Hills PD, Sterling Heights PD, Troy PD, Novi PD, Dearborn Heights PD, and Northfield Township PD. IRS-CI, and US Customs and Border Protection. The case is being prosecuted by Assistant United States Attorneys Mark Bilkovic, Timothy McDonald and Michael El-Zein.

 

An indictment was unsealed today charging Alan Lee Hardy, former bank teller at Chase Bank, with Bank Fraud, Acting U.S. Attorney Saima Mohsin announced today.

Mohsin was joined in the announcement by Special Agent in Charge Douglas Zloto, U.S. Secret Service, Detroit Field Office and Chief of Police David Molloy of the Novi Police Department.

“Elders are among the most vulnerable members of our society,” stated Acting US Mohsin.  “They are often seen as an easy target by those who seek to take advantage of them. My office is committed to bringing those who prey on our seniors to justice“

“The U.S. Secret Service is dedicated to ensuring the public remains confident in our country’s financial institutions and therefore takes cases of elder fraud incredibly seriously. These investigations can be time consuming, but law enforcement is committed to bringing individuals who take advantage of our seniors to justice. This case highlights that commitment as well as the partnership between the Novi Police Department, the Southeast Michigan Financial Crimes Taskforce and the U.S Attorney’s Office,” said Douglas J. Zloto, Special Agent in Charge.

“Every year millions of elderly Americans are victims of theft and fraud.  I’m very proud of the efforts of our detectives and task force officers who investigated this case and were committed to seeing justice prevail.  The relationships the Novi Police Department has with our federal partners affords us additional resources in identifying and prosecuting those who prey on our most vulnerable population," stated Chief Molloy.

Alan Lee Hardy, 37, was charged with one count of Bank Fraud on April 21, 2021.  It is alleged in the indictment that in August 2016, while working as a teller at the Chase Bank located at 3300 E. Jefferson Ave. in Detroit, Hardy defrauded a victim’s account of at least $32,000 in a single withdrawal.  The victim in this case was over 90 years old at the time of the fraud.  To date, the victim, has received no compensation for the money taken from his account.

The investigation was conducted by the United Secret Service and the Novi Police Department.  This case is being prosecuted by Assistant United States Attorney Mitra Jafary-Hariri and Chief of the White Collar Crimes Unit John Neal.  Ms. Jafary-Hariri serves as the Elder Justice Coordinator for the Eastern District of Michigan.

An indictment is only a charge and is not evidence of guilt.  Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Detroit -  The U.S. Attorney’s office and the FBI met with Asian American and Pacific Islander (AAPI) community leaders to address the rising violence against Asian Americans.

Today, Acting United States Attorney Saima Mohsin along with Special Agent in Charge Timothy Waters, and other law enforcement officials from their offices, participated in a listening session with approximately 20 Asian American community leaders, and members of civil rights organizations. The event took place virtually due to COVID-19 and covered topics including how the FBI conducts civil rights investigations, when cases can be prosecuted as federal hate crimes, and how incidents that do not rise to the level of a crime can be addressed through civil enforcement of federal civil rights laws.

“The United States Attorney’s Office is committed to upholding and protecting the civil rights of Asian Americans and every citizen in this state,” said Acting US Attorney Mohsin.  “Hate against any community should be a concern for every community.  Federal law enforcement will take action against violence or threats of violence directed at anyone based on race, religion, ethnicity, national origin, gender, or sexual orientation."

“The FBI is committed to establishing trust and open communication and strengthening partnerships with communities across the State. It is important for all Michiganders to remember that any violent criminal act or threat against any person because of their race, color, religion or national origin is a hate crime. This includes violence against Asian Americans, Pacific Islanders, or individuals from East Asian countries,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Field Office. “Anyone with knowledge of hate crimes against any member of our community is asked to report the incident to local police and/or the FBI.”

The event is one of many outreach efforts by the FBI and US Attorney’s Office to address discrimination, violence and harassment targeting people because of what they look like, which country they come from, where they worship or who they love.  The aim is to learn directly from the affected community about their concerns and reaffirm the Department of Justice’s commitment to protecting civil rights and preventing and prosecuting hate crimes.

Acting United States Attorney Saima S. Mohsin encourages anyone who has knowledge or information concerning any hate crime or incident involving bias or discrimination to contact the U.S. Attorney’s Office for the Eastern District of Michigan by calling the Civil Rights Hotline at 313.226.9151 or by sending an email to usamie.civilrights@usdoj.gov.

 

A 28-year-old resident of Bay City, Michigan, Brandon Scott Parsons, was sentenced today to 12 years in prison for possessing and accessing with intent to view child pornography involving prepubescent minors or minors under the age of 12, Acting United States Attorney Saima Mohsin announced today.

Mohsin was joined in the announcement by Special Agent in Charge Vance Callender of Homeland Security Investigations (HSI), Detroit.   

United States District Judge Thomas L. Ludington also imposed five years of supervised release on Brandon Scott Parsons, who pleaded guilty on December 23, 2020.

 “This sentence should serve as a warning for those who target and prey on children,” said Acting US Attorney Mohsin. “The aggressive investigation and prosecution of child predators remains among the highest priorities for our office.”

According to court documents, on July 16, 2019, Parsons distributed eight images containing child pornography on social media platforms. A search warrant conducted on March 23, 2020, revealed an additional five images containing child pornography on an SD card in Parsons’s cellphone. The images involved minors under the age of 12 or prepubescent, and bondage and bestiality scenes. Parsons had been previously convicted on February 17, 2015, of felony possession of child sexually abusive material and felony use of computers to commit a crime, in the 18th Judicial Circuit Court in Bay County.

The case was investigated by HSI. The case was prosecuted by Assistant United States Attorney Anca Pop.

A Grosse Pointe Park resident was arrested today in connection with a federal criminal complaint charging him with obtaining by fraud, embezzling, and unlawfully converting to his own use the funds of the Holy Cross organization, a large charitable organization based in Clinton, Michigan, that receives federal funds, announced Acting United States Attorney Saima S. Mohsin.

Joining in the announcement was Special Agent in Charge Timothy Waters of the FBI.

Charged in the criminal complaint is John R. Lynch, 56. The affidavit supporting the complaint states that in March 2012 Lynch became the CFO of the Holy Cross organization, and in January 2015 he became its CEO. Holy Cross was established in 1948 when Boysville of Michigan was incorporated under the auspices of the Roman Catholic Archdiocese of Detroit. Boysville of Michigan later became Holy Cross Children’s Services. The Holy Cross organization provides welfare services to disadvantaged children and adolescents, behavioral health services to adolescents and adults, and a number of support services to the homeless. Holy Cross services are provided mostly to individuals in Southeast and Mid-Michigan. The Holy Cross organization also includes the Samaritan Center, a large community resource center that provides healthcare, employment services, and other forms of support to residents of Detroit’s east side.

The complaint affidavit states that when he was Holy Cross’s CEO, Lynch used Holy Cross funds to pay for repairs to his own cars, install a new roof on his house, pay down his personal mortgage balance, and make payments on a personal American Express account. Lynch also used Holy Cross funds to pay his own consulting company and to pay another company hired to provide security services at the Samaritan Center, a company ostensibly controlled by a relative but actually controlled by him. Lynch attempted to justify some of these payments with bogus invoices The complaint affidavit also relates that Lynch used his corporate Holy Cross American Express card to pay for goods and services of a personal nature.

Holy Cross receives federal funds under the National School Lunch Program and the School Breakfast Program. It also receives federal funds under Title IV-E of the Social Security Act, which pays for foster care and provides adoption assistance and guardianship assistance.

The complaint charges Lynch with wire fraud, mail fraud, and embezzling and stealing funds under the care, custody, and control of an organization receiving federal funds. A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.

The case is being prosecuted by Assistant United States Attorney Stephen Hiyama. The investigation is being conducted by the Federal Bureau of Investigation.

A Canton man pleaded guilty today to one count of sexual exploitation of children, announced Acting United States Attorney Saima Mohsin.

Mohsin was joined in the announcement by Wayne County Prosecutor Kym Worthy and Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division.

Shailesh Patel, 53, entered his guilty plea before United States District Judge George Caram Steeh.  A sentencing date has been set for July 20, 2021.

“The sexual assault of children and the production of child pornography are heinous crimes and those who prey upon our children and commit these acts of violence will be vigorously prosecuted and brought to justice,” stated Acting US Attorney Mohsin.  “The United States Attorney’s Office is committed to working with our federal and local law enforcement partners involved with the SEMTEC Task Force to protect children from abuse and exploitation.”

“The women in this case were sexually assaulted for years by Shailesh Patel,” said Prosecutor Worthy. “They were children when the abuse began, and they were courageous to come forward as adults to report this behavior to the authorities. For their sake we are pleased that we were able to reach a global resolution with our state case and the Federal case.”

“It takes great partnerships from local, state, and federal law enforcement agencies, to successfully investigate these cases,” said Timothy Waters, Special Agent in Charge of FBI Detroit. “The FBI will continue to work tirelessly to protect the most vulnerable members of our community from harm and exploitation.”

As part of his plea, Patel agreed that in approximately 2010, on at least one occasion, he gave a 10 year old female his cellular phone and instructed her to make a video producing a visual depiction that constituted child pornography.

Patel also pleaded guilty on March 19, 2021 in Wayne County Circuit Court to 15 to 35 years in prison for a first-degree criminal sexual conduct charges, 9 to 15 years for two second-degree criminal sexual conduct charges, and probation for a fourth-degree criminal sexual conduct charge, conduct involving two minor female victims, one of which is the same victim in the federal case.  He is expected to be sentenced in the Wayne County Prosecutor’s Office case on May 28, 2021.

The case was the result of a joint investigation by the Canton Police Department and the Southeast Michigan Trafficking and Exploitation Crimes Task Force (“SEMTEC”) of the Federal Bureau of Investigation, as well as a cooperative effort between the Wayne County Prosecutor’s Office and the United States Attorney’s Office.

A Harper Woods man, who wore prosthetic facemasks to hide his identity, pleaded guilty today to wire fraud and identity fraud in a scheme to defraud and obtain money from the accounts of Global Payments Gaming Services Inc. (GPGS)’s VIP Preferred Program patrons, announced Acting United States Attorney Saima Mohsin.

Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division.

John Christopher Colletti, 56, entered his guilty plea before United States District Judge Linda V. Parker in United States District Court in Detroit this afternoon.

“This defendant went to extraordinary lengths to hide his identity in order to steal others identities and money,” stated Acting US Attorney Mohsin.  “I commend the work of the FBI agents for tracking Colletti down and helping bring him to justice.”

"John Colletti stole the identities of dozens of innocent people, dragging them all into his criminal scheme," said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Field Office. “The impacts of identity theft are serious and far-reaching for victims, and the FBI will work hard to ensure anyone who engages in this type of conduct is held accountable.”

According to court records, in or around April 26, 2019, and continuing through March 12, 2020, Colletti, with the intent to defraud, unlawfully accessed accounts in the names of several individual victims using GPGS’s kiosks located within various casino properties in at least two states, including the MGM Grand in Detroit. Colletti used names, driver’s license numbers, and the last four digits of Social Security Numbers assigned to known individuals in order to access one or more account in those individuals’ names. Upon gaining access to these accounts, Colletti initiated numerous transactions, withdrawing thousands of dollars from these accounts.  Colletti made these withdrawals with both the intent to defraud and knowledge of the fact that he was not entitled to the money in the victims’ accounts. Further, in making these withdrawals, Colletti attempted to disguise himself by wearing one or more full prosthetic facemasks. Colletti defrauded his victims out of approximately $125,740.00 dollars.

Colletti had in his possession pieces of personally identifiable information (PII) for approximately 300 identities, as well as several full prosthetic facemasks.

GPGS assumed the loss on behalf of its VIP Preferred Program patrons, who were the individual victims. As part of his guilty plea, Colletti will be required to pay restitution to GPGS in the full amount of $125,740.00.

Colletti faces a statutory maximum penalty of 20 years imprisonment on the charge of wire fraud and a mandatory minimum sentence of 2 years imprisonment on the charge of identity fraud.

Colletti will be sentenced on July 7, 2021, at 11:00AM.

The investigation of this case was conducted by the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorney Ryan Particka.

A federal grand jury indicted a construction contractor for stealing over $1.2 million from the United States Postal Service through a more than three-year scheme to defraud through false invoices, Acting United States Attorney Saima S. Mohsin announced today.

Mohsin was joined in the announcement by Steven Suller, Director of the Contract Fraud Investigations Division, United States Postal Service, Office of Inspector General.

Michael Rymar, 59, of Rochester Hills, stands charged with embezzling government funds from the United States Postal Service (USPS). From 2015 to 2018, USPS engineers awarded Rymar’s company, Horizons Materials & Management LLC, with over $5 million in contracts for repairs on USPS buildings in Michigan and New York. But the documentation Rymar provided contained false and fraudulent statements, oftentimes dramatically and falsely overstating the amount he paid subcontractors to complete the repairs. Rymar also falsely inflated the amount he paid his own employees and the cost of materials on USPS jobs. Over the course of the three-plus year fraudulent scheme, Rymar stole over $1.2 million from USPS out of the $5 million in contracts he was awarded.

As part of the Indictment, the government is seeking recovery of at least $1.2 million in embezzled funds from Rymar.

Acting United States Attorney Mohsin stated, “Today’s indictment underscores our commitment to safeguarding taxpayer funds and to prosecute those individuals who use fraudulent schemes to line their pockets with the people’s money.”

“The U.S. Postal Service spends hundreds of millions of dollars on new construction, maintenance, and renovation of U.S. Postal Service facilities,” said Director Steven Stuller, U.S. Postal Service Office of Inspector General. “Along with the Department of Justice and our federal law enforcement partners, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of harmful conduct.”

Upon conviction for a violation of Title 18, United States Code, Section 641, theft of government funds, Rymar faces a maximum of ten years in prison and a fine of up to $250,000.   

An indictment is only a charge and is not evidence of guilt.

The investigation of this case was conducted by the of the United States Postal Service, Office of Inspector General.  The case is being prosecuted by Assistant U.S. Attorney Steven Cares.

A federal grand jury indicted a construction contractor for stealing over $1.2 million from the United States Postal Service through a more than three-year scheme to defraud through false invoices, Acting United States Attorney Saima S. Mohsin announced today.

Mohsin was joined in the announcement by Steven Suller, Director of the Contract Fraud Investigations Division, United States Postal Service, Office of Inspector General.

Michael Rymar, 59, of Rochester Hills, stands charged with embezzling government funds from the United States Postal Service (USPS). From 2015 to 2018, USPS engineers awarded Rymar’s company, Horizons Materials & Management LLC, with over $5 million in contracts for repairs on USPS buildings in Michigan and New York. But the documentation Rymar provided contained false and fraudulent statements, oftentimes dramatically and falsely overstating the amount he paid subcontractors to complete the repairs. Rymar also falsely inflated the amount he paid his own employees and the cost of materials on USPS jobs. Over the course of the three-plus year fraudulent scheme, Rymar stole over $1.2 million from USPS out of the $5 million in contracts he was awarded.

As part of the Indictment, the government is seeking recovery of at least $1.2 million in embezzled funds from Rymar.

Acting United States Attorney Mohsin stated, “Today’s indictment underscores our commitment to safeguarding taxpayer funds and to prosecute those individuals who use fraudulent schemes to line their pockets with the people’s money.”

“The U.S. Postal Service spends hundreds of millions of dollars on new construction, maintenance, and renovation of U.S. Postal Service facilities,” said Director Steven Stuller, U.S. Postal Service Office of Inspector General. “Along with the Department of Justice and our federal law enforcement partners, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of harmful conduct.”

Upon conviction for a violation of Title 18, United States Code, Section 641, theft of government funds, Rymar faces a maximum of ten years in prison and a fine of up to $250,000.   

An indictment is only a charge and is not evidence of guilt.

The investigation of this case was conducted by the of the United States Postal Service, Office of Inspector General.  The case is being prosecuted by Assistant U.S. Attorney Steven Cares.

DETROIT - An Oakland County Cardiologist, Dinesh M. Shah, M.D. and his practice, Michigan Physicians Group, P.C. (MPG) have paid the United States $2 million to resolve allegations that they violated the False Claims Act by knowingly billing federal healthcare programs for diagnostic testing that was either unnecessary or not performed. MPG is a Michigan professional corporation with primary offices located in Berkley and Livonia, Michigan, and with administrative offices, labs, and testing sites at other locations within the metropolitan Detroit area. Shah is a practicing cardiologist and the sole owner of MPG.

This settlement resolves allegations that from 2006 to 2017, Shah and MPG knowingly billed government programs, including Medicare, Medicaid, and TRICARE, for unnecessary diagnostic testing. The investigation focused on the provision of a group of diagnostic tests, which included Ankle Brachial Index and Toe Brachial Index tests, known as ABI/TBIs, which were routinely performed on patients without first being ordered by a physician and without regard to medical necessity. The ABI compares blood pressure in the ankle to blood pressure in the arm to determine how well blood is flowing from the heart to the feet. The TBI is an additional measure to assess blood pressure readings at the toes.

The investigation also focused on the provision of unnecessary Nuclear Stress Tests. The United States alleged that Shah was routinely ordering, and MPG was providing, unnecessary Nuclear Stress Tests to some patients. During a Nuclear Stress Test, a small amount of radioactive tracer is injected into a vein, after which it is detected by a special camera that produces images used to evaluate blood flow to the heart.

This settlement comes after a years-long investigation by the Office of Inspector General for the United States Department of Health and Human Services and the Defense Health Agency acting on behalf of the TRICARE Program. The State of Michigan Attorney General’s Office participated in the settlement as the State of Michigan was a named plaintiff in one of the cases.

“Subjecting patients to unnecessary testing in order to fill one’s pockets with taxpayer funds will not be tolerated. Such practices are particularly concerning because overuse of some tests can be harmful to patients,” said Acting U.S. Attorney Saima Mohsin. “With these lawsuits and the accompanying resolution, Dr. Shah and Michigan Physicians Group are being held to account for these exploitative and improper past practices.

“Physicians commit to providing and billing for only medically necessary services when they choose their profession and participate in federally funded health care programs,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & human Services, Office of Inspector General – Chicago Region. “To deviate from that commitment  and potentially place their patient’s health and safety at risk as well as limited tax payer resources is unacceptable. The OIG will continue to work with our federal, state and local partners to ensure that patients and tax payer dollars are protected.”

In addition to the civil settlement agreement, Dinesh Shah and MPG simultaneously entered into an Integrity Agreement with the Office of Inspector General for the United States Department of Health and Human Services, which provides for some oversight of Shah and MPG’s billing practices for a three-year period.

The settlement resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by two separate whistleblowers, Arlene Klinke and Khrystyna Mala, both former employees of MPG. The False Claims Act permits private parties to file suit on behalf of the United States and to share in any recovery. 

The matter was handled by Assistant United States Attorneys Leslie Wizner and Lynn Dodge.

The two qui tam cases are docketed as United States ex rel. Arlene Klinke v. Dinesh Shah, M.D. and Michigan Physicians Group, Civil Action No. 10-cv-10726 (E.D. MI), and United States and State of Michigan ex rel. Khrystyna Mala v. Michigan Physicians Group, P.C. Dinesh Shah, M.D. Alka Shah, M.D., Rita Shah, M.D. and Tatiana Shcherbich, Civil Action No. 12-cv-10732 (E.D. MI). 

The claims resolved by the settlement are allegations only; there has been no determination of liability.

An indictment was unsealed charging a pharmacist and a pharmacy technician with conspiracy to illegally distribute prescription drugs, announced Acting U.S. Attorney Saima Mohsin.

Mohsin was joined in the announcement by Special Agent in Charge Keith Martin, U.S. Drug Enforcement Administration, Detroit Field Division; Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division; and Special Agent in Charge Lamont Pugh, the Department of Health and Human Services, Office of the Inspector General (HHS-OIG).

Charged were Cosmos George, 46, of Southfield and Tarielle Dixon, 33, of Detroit.

According to the indictment, from September 2017 through June 2020, Cosmos George, a pharmacist working at the Village Script East Pharmacy located in Dearborn and Tarielle Dixon, a pharmacy technician working at the Nottingham Pharmacy located in Detroit, conspired with others to dispense a large number of prescription opioids for fictitious patients who did not have a legitimate medical need for the drugs.    Both George and Dixon dispensed addictive and highly diverted prescriptions for the same opioid distribution ring.

Over the course of the conspiracy, George and Dixon primarily dispensed oxycodone and oxymorphone, two of the most addictive opioids that have high black market resale values.

The indictment further alleges that the pharmacies dispensed more than 41,995 dosage units of Schedule II opioid prescriptions during the course of the conspiracy.  These controlled substances had a conservative street value in excess of $1,200,000.

This case is being prosecuted by Assistant United States Attorneys Mitra Jafary-Hariri and Brandy R. McMillion.  The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit, a Department of Justice initiative, using data to target and prosecute individuals that are contributing to the nation’s opioid crisis.

If convicted of the charges, each face a statutory maximum penalty of 20 years in federal prison.

An indictment is only a charge and is not evidence of guilt.  Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

A Troy based commercial real estate broker and investor pleaded guilty today with devising and executing a scheme to obtain money by means of false material promises and representations from victim-investors, Acting U.S. Attorney Saima S. Mohsin announced.

Mohsin was joined in the announcement by Special Agent in Charge Timothy T. Waters, Federal Bureau of Investigation.        

Viktor Gjonaj, age 43, entered a guilty plea to one count of wire fraud before the Honorable Linda Parker, United States District Judge.

According to the facts made public in the Information, in June 2016, Gjonaj believed he had discovered a guaranteed way to win huge jackpots in the Michigan Lottery Daily 3 and 4 games. To accomplish this he had to substantially increase the times he played and amounts he spent. In 2017, Gjonaj began losing more money than he won and more money than he could afford to lose. Rather than ending his gambling, Gjonaj devised a scheme to trick individuals into giving him money by falsely promising them he would invest it in lucrative real estate deals. In order to make the deals look legitimate, Gjonaj created a fake title company and instructed the victim-investors to wire transfer money into the bank account of the fake company. Gjonaj described the fraudulent real estate deals in great detail and encouraged victim-investors to continue giving him money by disbursing payments to them which he falsely claimed were profits on their “investment.” By early 2019, Gjonaj was betting over $1 million a week on Michigan Lottery games using money fraudulently obtained from victims. In August 2019, Gjonaj’s scheme to defraud unraveled resulting in over $19 million in losses to victims.  

As part of the plea agreement with the government Gjonaj acknowledges that his scheme to defraud and to obtain money by means of false and fraudulent pretenses and representations victimized numerous individuals and that their losses will be included as relevant conduct in calculating his sentencing guidelines, and by the court in ordering restitution.

“Gjonaj used his previous business successes and relationships with victim-investors to lure them into his scheme with false promises,” said Acting United States Attorney Saima Mohsin. “White collar criminals who use lies and deceit to steal other people’s money will be held accountable for their actions,”

“Viktor Gjonaj operated a multi-year scheme in which he played the lottery with money he was trusted to invest,” said Timothy Waters, Special Agent in Charge of the FBI in Michigan. “Today’s guilty plea is the first step in getting justice for victims who have suffered both financially and emotionally.”

Judge Parker scheduled sentencing for June 15, 2021 at 2pm..                         .

The investigation was conducted by the FBI. The Securities and Exchange Commission’s cooperation in this investigation is appreciated.

 

DETROIT – As part of the federal response to the COVID-19 outbreak, the U.S. Attorney’s Office for the Eastern District of Michigan is reminding landlords of their obligations and tenants of their rights under the Centers for Disease Control’s (CDC) Order temporarily halting residential evictions of tenants who meet certain income eligibility requirements and who are unable to pay their full rent. The Order prohibits landlords from evicting such tenants for non-payment of rent through March 31, 2021.

As the Justice Department recently clarified, the decision of the Texas district court in Terkel v. Center for Disease Control does not extend beyond the particular plaintiffs in the case and does not prohibit the application of the CDC’s eviction moratorium to other parties.  Accordingly, the CDC’s Order remains in effect.

The CDC’s Order, imposing a Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19, aims to mitigate the spread of COVID-19 by enabling people who get sick or who are at risk for severe illness from COVID-19 to protect themselves and others by staying in one place to quarantine.  Under the CDC Order, tenants who meet income eligibility requirements (generally, those earning less than $99,000 per year, or $198,000 if filing jointly) and who are unable to pay their full rent due to substantial loss of household income, loss of compensable hours of work or wages, a lay-off, or extraordinary out-of-pocket medical expenses, can obtain protection from eviction by providing a sworn declaration regarding their situation to their landlord. Once this declaration is provided, a landlord is prohibited from evicting the tenant while the moratorium remains in effect.  Landlords who violate the prohibition on eviction may be subject to substantial penalties, including fines of up to $250,000 and up to a year in jail. 

The Order is not intended to prevent landlords from starting eviction proceedings, but rather to stop the actual eviction of a covered person for non-payment of rent. Moreover, the Order does not affect the obligation of tenants to pay rent, nor does it bar the collection of fees, penalties, and interest.

Acting United States Attorney Saima S. Mohsin encourages anyone who has knowledge of a landlord violating the CDC Order to contact the U.S. Attorney’s Office for the Eastern District of Michigan by calling the Civil Rights Hotline at 313.226.9151 or by sending an email to usamie.civilrights@usdoj.gov.  More information on the CDC Order is available here.

Given the gravity of the current public health crisis, tenants covered by the CDC Order should consider taking appropriate steps to obtain legal protection from eviction and landlords are encouraged to consider alternatives to legal action while the CDC moratorium remains in effect. Federal resources are available through the Consumer Financial Protection Bureau to assist landlords with mortgage relief here.

The Civil Rights Unit of the U.S. Attorney’s Office was established in 2010 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit https://www.justice.gov/usao-edmi/programs/civil-rights

A Canadian man was sentenced today to 71 months imprisonment after having pleaded guilty to possessing with intent to distribute marijuana and to unlawful entry into the United States, announced Acting United States Attorney Saima Mohsin.

Mohsin was joined in the announcement by Special Agent in Charge Vance Callander of Homeland Security Investigations (HSI), Detroit.

Sentenced was Glen Richard Mousseau, 49, of Windsor, Canada.

According to court records, during the early morning hours on June 5, 2020, Border Patrol Agents observed a vessel carrying Mousseau cross the international boundary from Canada into the United States at a high rate of speed.  The vessel fled when agents attempted to perform a stop.  Agents observed two large bundles thrown over the side of the vessel.  Mousseau had abandoned the vessel and was found seemingly unconscious in the water with approximately 265 pounds of marijuana attached to him with two ropes.  Mousseau was subsequently arrested and admitted to possessing the marijuana for distribution in the United States.  Mousseau had been previously deported from the United States in December, 1995 and had not obtained authorization to reenter.

Acting US Attorney Mohsin said, “Mousseau was a sophisticated drug smuggler who smuggled large quantities of drugs, to include methamphetamine, cocaine and marijuana, along with bulk cash, across the international waterway between the United States and Canada.  He smuggled these items during early morning hours using submersible vessels and diving equipment and a high speed boat showing just how dangerous drug trafficking can be.”

The investigation was led by specials agents with Homeland Security Investigations with the assistance of the St. Clair County Sheriff’s Department.

The case was prosecuted by Assistant United States Attorneys Jonathan Goulding and John O’Brien.

 

# # #

The chief executive officer of a Michigan and Ohio-based group of pain clinics and other medical providers was sentenced today to 15 years in prison for developing and approving a corporate policy to administer unnecessary back injections to patients in exchange for prescriptions of over 6.6 million doses of medically unnecessary opioids.

Mashiyat Rashid, 40, of West Bloomfield, Michigan, was the CEO of the Tri-County Wellness Group of medical providers in Michigan and Ohio. In addition to the prison sentence, Rashid was also ordered to pay over $51 million in restitution to Medicare, as well as forfeiture to the United States of property traceable to proceeds of the health care fraud scheme, including over $11.5 million, commercial real estate, residential real estate, and a Detroit Pistons season ticket membership.

Rashid pleaded guilty in 2018 to one count of conspiracy to commit health care fraud and wire fraud, and one count of money laundering. Twenty-one other defendants, including 12 physicians, have been convicted thus far, including four physicians who were convicted after a one-month trial in 2020. Rashid is the second defendant to be sentenced.

According to court documents, from 2008 to 2016, Rashid was the CEO of the Tri-County Wellness Group, where the clinics had a policy to offer patients, some of whom were suffering from legitimate pain and others of whom were drug dealers or opioid addicts, prescriptions of Oxycodone 30 mg, but forced the patients to submit to unnecessary back injections in exchange for the prescriptions.

Testimony at the trial established that in some instances the patients experienced more pain from the shots than from the pain they had purportedly come to have treated; that audible screams from patients were observed throughout the clinics; and that some patients developed adverse conditions, including open holes in their back. Patients, including patients who were addicted to opioids, who told the doctors that they did not want, need, or benefit from the injections, were denied medication by the defendants and their co-conspirators until they agreed to submit to the expensive and unnecessary injections. The evidence further established that the defendants repeatedly performed these unnecessary injections on patients, as Tri-County was paid more for facet joint injections than any other medical clinic in the United States. 

The evidence at trial showed that the Tri-County clinics valued making money over patient care.  The Tri-County clinics intentionally targeted the Medicare program and recruited patients from homeless shelters and soup kitchens. Evidence at trial indicated that Rashid only hired physicians who were willing to disregard patient care in the pursuit of money. Rashid incentivized the physicians to follow the Tri-County protocol of offering opioid prescriptions and administering unnecessary injections by offering to split the Medicare reimbursements for these lucrative procedures. The specific injections used had nothing to do with the medical needs of the patients but were instead selected to be administered because they were the highest-paying injection procedures. A former Tri-County employee testified at the trial of Rashid’s co-defendants that the practices at the clinic were “barbaric.” 

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Saima Shafiq Mohsin of the Eastern District of Michigan; Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services’ Office of Inspector General’s (HHS-OIG’s) Chicago Region; Special Agent in Charge Timothy Waters of the FBI’s Detroit Field Office; and Special Agent in Charge Sarah Kull of IRS Criminal Investigation (IRS-CI) Detroit made the announcement.

HHS-OIG, FBI, and IRS-CI conducted the investigation. Assistant Chief Jacob Foster of the National Rapid Response Strike Force and Trial Attorney Tom Tynan of the Criminal Division’s Fraud Section  prosecuted the case. 

The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

DETROIT – FCA US LLC (FCA, a/k/a Fiat Chrysler Automobiles), one of the big three American automobile manufacturers, pleaded guilty to conspiring to violate the Labor Management Relations Act, also known as the Taft-Hartley Act, by making illegal payments to officers of the United Auto Workers union, Acting United States Attorney Saima S. Mohsin announced today. 

FCA is the American operating subsidiary of Stellantis, and it is headquartered in Auburn Hills, Michigan. 

Today, a representative of FCA appeared in a virtual court hearing before United States District Judge Paul D. Borman and admitted that the company had conspired with other entities and individuals to violate the Taft-Hartley Act by making more than $3.5 million in illegal payments to officers of the International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America (UAW) during the period 2009 through 2016.  During the conspiracy, executives of FCA, including Alphons Iacobelli, Jerome Durden, and others, engineered the illegal payments to senior officials of the UAW.  During the conspiracy from 2009 through June 2015, Iacobelli was the Senior Vice President of FCA US LLC in charge of labor relations. 

The illegal payments to UAW officials took various forms, including extravagant meals, rounds of golf, lavish parties for the UAW International Executive Board, an Italian-made shotgun, clothing, designer shoes, and other personal items paid for with credit cards issued by the joint training center.  FCA executives also paid off the $262,000 home mortgage of former UAW Vice President General Holiefield.  Holiefield and his widow also received hundreds of thousands of dollars directed through Holiefield’s purported charitable organization, as well as companies controlled by him which had contracts with the training center.  The illegal payments were passed through the UAW-Chrysler Skill Development & Training Program d/b/a the UAW-Chrysler National Training Center (NTC).  Ostensibly, the NTC was supposed to provide training and health and safety protections for FCA workers.  The UAW officials who accepted illegal payments included former UAW Vice Presidents Holiefield and Norwood Jewell, Holiefield’s widow, Monica Morgan, and senior UAW officials, Virdell King, Keith Mickens, and Nancy Johnson.  Morgan and all of the UAW officials, except for Holiefield, have pleaded guilty to conspiring to accept the illegal payments from FCA or tax charges.  Holiefield died in 2014.       

During the hearing, the United States and FCA presented their Rule 11 Plea Agreement to the Court.  Under the terms of the agreement, FCA has agreed to pay a fine of $30 million, which represents a figure triple the base fine amount provided for the offense by the United States Sentencing Guidelines.  In addition, FCA has agreed to be subject to probation for three years.  During that three year period, an independent compliance monitor selected by the government will oversee the company’s adherence to federal labor laws. 

The Court set a date for a sentencing hearing, where it will impose penalties based on the criminal conviction.        

Acting United States Attorney Mohsin said, “Through its participation in this conspiracy, FCA violated federal labor law and undermined the collective bargaining process and the faith of the UAW’s membership in their leaders.  By seeking a $30 million fine and three years of oversight by a court-appointed monitor, we are holding FCA accountable and sending a message to other companies that these types of crimes will not be tolerated.”

“FCA US LLC conspired to make improper labor payments to high-ranking UAW officials, which were used for personal mortgage expenses, lavish parties, and entertainment expenses.  Instead of negotiating in good faith, FCA corrupted the collective bargaining process and the UAW members’ rights to fair representation.  We will continue to work with our law enforcement partners to root out systemic corruption and fraud involving unions," stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

“Fiat Chrysler Automobiles used a program intended for the betterment of its employees to instead benefit itself. By providing money and valuables to UAW officials, FCA corrupted the labor-management relationship and broke the law,” said Timothy Waters, Special Agent in Charge of the FBI in Michigan. “This case sends a clear message that the FBI and its partners will hold both union leadership and corporations accountable when they violate federal statutes.”

“Today’s guilty plea should serve as a reminder that IRS-CI and our law enforcement partners will aggressively investigate any company who violates federal law in an attempt to gain an unfair advantage in the marketplace,” stated Sarah Kull, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Detroit Field Office.

“While the vast majority of union officials do their work diligently and without incident, unfortunately civil and criminal violations do occur. FCA’s guilty plea today confirms that it attempted to corrupt the collective bargaining process in order to gain favorable contracts from the UAW at the expense of UAW members.  FCA attempted that corruption by making more than $3.5 million in illegal payments to high ranking UAW officials,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “OLMS will continue to work with its law enforcement partners to hold accountable anyone - employer or union official - that unlawfully exploits their position in the collective bargaining process for personal or corporate financial gain without regard to the best interests of union members.”

Thus far, as part of this investigation of illegal payments by FCA to UAW officials, as well as fraud and embezzlement by other UAW officers, fifteen individuals have been convicted of convicted of federal crimes, including three former FCA executives.  They include former UAW Vice President Joseph Ashton (30 months in prison)  former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), former senior UAW official Michael Grimes (28 months in prison), and former UAW Midwest CAP President Edward “Nick” Robinson (12 months in prison). In addition, the following UAW officials have pleaded guilty and are awaiting sentencing: former UAW President Gary Jones, former senior UAW official Jeffrey Pietrzyk, former UAW Region 5 Director and UAW Board member Vance Pearson, and former UAW President Dennis Williams.

Acting U.S. Attorney Mohsin commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.

This case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and Erin S. Shaw.  

 

The U.S. Attorney’s Office for the Eastern District of Michigan and the United States Department of Health and Human Services have reached a settlement with Great Lakes Surgical Associates, a surgical practice with multiple locations in Michigan. The settlement agreement resolves allegations that the practice violated the Americans with Disabilities Act (“ADA”) as well as other federal civil rights laws when it refused to treat a patient because the patient was HIV-positive.

The ADA prohibits places of public accommodation, such as medical offices, from discriminating against individuals with disabilities. Denying an individual the opportunity to participate in or benefit from the services of a medical office is one form of discrimination prohibited by Title III of the ADA.

 “Individuals living with HIV have a right to access medical treatment, and should not be discriminated against because of their medical condition. The Americans with Disabilities Act ensures such access by requiring doctors to make decisions based on an individual’s medical needs, not on stereotypes or assumptions. We appreciate Great Lakes Surgical Associates willingness to work with our office to resolve these allegations.” said Acting U.S. Attorney Saima S. Mohsin.

Under the settlement agreement, Great Lakes Surgical Associates has agreed to pay money damages to the patient and to revise its policies and train its staff to ensure compliance with the ADA.

For more information on the ADA and the DOJ’s Barrier Free Healthcare Initiative, visit http://www.ada.gov/usao-agreements.htm, and for information concerning the DOJ’s ADA enforcement of discrimination on the basis of HIV/AIDS, visit https://www.ada.gov/hiv/ada_hiv_enforcement.htm. Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov.  ADA complaints may be submitted to the U.S. Attorney’s Office by email at usamie.civilrights@usdoj.gov, or by calling 313-226-9151.

 

A Michigan woman was indicted on allegations that she intentionally misappropriated government funds that were designed to aid medical providers in the treatment of patients suffering from COVID-19 and used them for her own personal expenses.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Acting U.S. Attorney Saima Mohsin of the Eastern District of Michigan, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services’ Office of Inspector General’s (HHS-OIG) Chicago Region and Special Agent in Charge Timothy Waters of the FBI’s Detroit Field Office made the announcement.

Amina Abbas, of Taylor, was charged by indictment Wednesday in the Eastern District of Michigan with embezzlement of government property.

This indictment includes the first criminal charges for the intentional misuse of funds intended to provide relief to health care providers and maintain the access to medical care during the pandemic, money set aside to help Americans get needed medical care in a global health and economic crisis. 

The indictment alleges that Abbas previously owned 1 on 1 Home Health (1 on 1), which she had closed in early 2020 after Medicare issued an overpayment demand for $1,619,967.08 because 1 on 1 had submitted claims for patients who did not qualify for home health services. According to the indictment, 1 on 1, which was never operational during the pandemic, received approximately $37,656.95 designated for the medical treatment and care of COVID-19 patients. Abbas then allegedly misappropriated the funds by issuing checks to her family members for personal use. 

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the Provider Relief Fund, moneys that were provided to medical provers that must be used for the medical providers’ coronavirus response. 

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The case was investigated by HHS-OIG and the FBI. Trial Attorney Emily Gurskis of the Criminal Division’s Fraud Section is prosecuting the case.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

A Troy based commercial real estate broker and investor was charged today with devising and executing a scheme to obtain money by means of false material promises and representations from victim-investors, U.S. Attorney Matthew Schneider announced.

Schneider was joined in the announcement by Special Agent in Charge Timothy T. Waters, Federal Bureau of Investigation.

Viktor Gjonaj, age 43, was charged in an Information with one count of wire fraud and the case has been assigned to the Honorable Linda V. Parker, United States District Judge.

According to the criminal Information, in June 2016, Gjonaj believed he had discovered a guaranteed way to win huge jackpots in the Michigan Lottery Dailey 3 and 4 games. To accomplish this he had to substantially increase the times he played and amounts he spent. In 2017, Gjonaj began losing more money than he won and more money than he could afford to lose. Rather than ending his gambling, Gjonaj devised a scheme to trick individuals into giving him money by falsely promising them he would invest it in lucrative real estate deals. In order to make the deals look legitimate, Gjonaj created a fake title company and instructed the victim-investors to wire transfer money into the bank account of the fake company. Gjonaj described the fraudulent real estate deals in great detail and encouraged victim-investors to continue giving him money by disbursing payments to them which he falsely claimed were profits on their “investment.” By early 2019, Gjonaj was betting over $1 million a week on Michigan Lottery games using money fraudulently obtained from victims. In August 2019, Gjonaj’s scheme to defraud unraveled resulting in over $19 million in losses to victims.  

“This case shows us that criminals may use sophisticated methods and apparently legitimate businesses, but their crimes amount to nothing more than stealing other people’s money.  The defendant’s gambling harmed not just himself, but many other innocent victims as well,” stated United States Attorney Matthew Schneider.

“Viktor Gjonaj repeatedly lied about the nature of his business, inducing investors to turn over money that he then squandered by playing the lottery," said Timothy Waters, Special Agent in Charge of the FBI in Michigan. "The defendant’s lies have caught up with him and he will now face the consequences of his fraudulent scheme." 

 An Information is only a charge and is not evidence of guilt.  The defendant is presumed innocent and the burden is on the government to prove guilt beyond a reasonable doubt.

 The investigation was conducted by the FBI. The Securities and Exchange Commission’s cooperation in this investigation is appreciated.

If you or someone you know is suffering from a gambling addiction please visit   Michigan Problem Gambling Helpline at

https://www.michigan.gov/mdhhs/0,5885,7-339-71550_2941_4871_43661_64090-295819--,00.html

Three defendants have been charged via criminal complaints for their roles in two separate Unemployment Insurance benefit fraud schemes, announced United States Attorney Matthew Schneider.

Joining in the announcement were Special Agent-in-Charge Timothy Waters, Federal Bureau of Investigation; and Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

One complaint charges Mitchacole Johnson, 44, of Shelby Township, and Larry Witherspoon, 45, of Harper Woods, with mail fraud, wire fraud, and conspiracy to commit mail and wire fraud. Johnson and Witherspoon were arrested today.

According to the complaint, Johnson and Witherspoon are responsible for filing at least 66 claims for fraudulent Michigan unemployment insurance benefits, causing a loss to the state of over $150,000. It is also alleged that Johnson and Witherspoon filed dozens of complaints in other states—including California, Arizona, and Nevada—causing additional losses in excess of $300,000. The complaint alleges that Johnson filed a number of claims in her own name, while Witherspoon filed multiple claims in the names of people who had names similar to his own, such as “Lawrence Witherspoon” Both Johnson and Witherspoon are alleged to have filed their claims using other people’s Social Security Numbers. The complaint alleges that the pair had the benefits deposited into a variety of bank accounts, some connected to pre-paid debit cards.

The other complaint charges Jordan Armstrong, 28, of Detroit, with wire fraud, fraud in connection with access devices, and aggravated identity theft. Armstrong was arrested on January 20, 2021.

According to the complaint, Armstrong has filed fraudulent applications for unemployment insurance benefits on behalf of individuals in Michigan, California, and Pennsylvania.  It is alleged that Armstrong did so using these individuals’ Social Security Numbers, and that he did so without their permission.  The complaint states that during the application process, Armstrong requested the benefits to be paid out via debit card, and then caused the cards to be mailed to various addresses within his control here in Michigan. It is alleged that Armstrong then used these cards to repeatedly withdrawal the funds via ATM, and that by October 2020 he was making daily, high-dollar cash withdrawals using at least 12 separate debit cards. Armstrong is alleged to be responsible for as many as 29 fraudulent Michigan Unemployment Insurance claims, and at least 19 claims in other states. The total value of the benefits stolen by Armstrong is alleged to be more than $180,000.

“These funds should have gone to Michiganders who need help getting through this difficult time. As I have said before, those who steal unemployment benefits steal from all of us. These arrests reflect our ongoing commitment to investigating these schemes and bringing the people who commit these crimes to justice,” stated United States Attorney Schneider.

“An important mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance benefit programs. We will continue to work with our law enforcement partners to protect the integrity of unemployment insurance benefit programs," stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

“Unemployment benefits are intended to support individuals and families who are in crisis due to the economic impact of the COVID-19 pandemic,” said Timothy Waters, Special Agent in Charge of the FBI in Michigan. “Fraud against the unemployment benefit insurance program has become increasingly prevalent during the pandemic. The FBI will continue to work with our state, local, and federal law enforcement partners to identify and aggressively investigate anyone who steals identities in an effort to divert these vital funds.”

“We thank the U.S. Attorney’s office for their continued efforts to protect workers and the state’s unemployment system,” said Michigan Unemployment Insurance Agency (UIA) Acting Director Liza Estlund Olson. “The UIA remains committed to working closely with all of our federal and state partners on the Michigan Unemployment Insurance Fraud Task Force to bring unemployment fraud cases to justice.”

A complaint is only a charge and is not evidence of guilt.  Trial cannot be held on felony charges in a complaint.  When the investigations are completed, determinations will be made whether to seek felony indictments.

These cases are both being prosecuted by Assistant United States Attorney Ryan A. Particka.  The investigations are being conducted jointly by agents from the Department of Labor Office of the Inspector General and the Federal Bureau of Investigation.

Edward “Nick” Robinson, the former President of the United Auto Workers Midwest CAP and the former Director of the UAW Labor and Employment Training Corporation, was sentenced to 12 months in prison and was directed to pay $342,000 in restitution to the UAW and the IRS, pending a final restitution hearing, based on convictions for conspiring with other UAW officials to embezzle UAW funds and evade taxes announced U.S. Attorney Matthew Schneider.

Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Timothy Waters, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.

Edward “Nick” Robinson, 73, of Kirkwood, Missouri, had previously pleaded guilty to conspiring to embezzle UAW dues money between 2010 and September 2019 and to evade paying taxes on his illegal income.  Between at least 2010 and September 2019, Robinson served as the President of the UAW’s Midwest CAP of Region 5 of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”).  The UAW Midwest CAP is one of the UAW’s Community Action Program Councils which are supported through UAW dues money.  The UAW’s Region 5 is headquartered in Hazelwood, Missouri, and covers the tens of thousands of UAW members in Missouri and the sixteen states to the southwest, including California and Texas.  Robinson also served as the Director of the UAW Labor and Employment Training Corporation headquartered in Hazelwood, Missouri.  The UAW-LETC was supposed to provide workforce training and development programs.      

The investigation revealed that Robinson had conspired with at least six other senior UAW officials, including two UAW Presidents, in a multiyear conspiracy to embezzle money from the UAW for the personal benefit of Robinson and other senior UAW officials.  UAW officials concealed personal expenditures in the cost of UAW Region 5 conferences held in Palm Springs, California, Coronado, California, and Missouri.  Between 2010 and 2018, other UAW officials submitted fraudulent expense forms seeking reimbursement from the UAW’s Detroit headquarters for expenditures supposedly incurred in connection with Region 5 leadership and training conferences.  In truth, however, Robinson and his co-conspirators used the conferences to conceal the hundreds of thousands of dollars in UAW funds spent on lavish entertainment and personal spending for the conspirators. 

During the sentencing hearing, the United States requested a reduced sentence for Robinson based on his extraordinary cooperation in the investigation and prosecution of other individuals, as well as based on his serious and chronic medical conditions.  Back in March 2019, Robinson came forward to law enforcement and offered to work in an undercover capacity to expose embezzlement and corruption by the highest leaders of the UAW.  Robinson’s proactive cooperation assisted the government in securing the convictions of two former UAW Presidents, Gary Jones and Dennis Williams, and UAW Board member and Regional Director Vance Pearson. 

As part of his sentence, and pending a possible final restitution hearing, the Court directed Robinson to pay the UAW $300,000 in restitution based on his involvement in the embezzlement conspiracy.  In addition, the Court ordered Robinson to pay $42,000 in restitution to the IRS based on his failure to pay taxes.    

U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.

“The Court’s sentence today demonstrates that individuals who accept responsibility and engage in extraordinary and significant efforts to aid in the investigation of criminal activity will receive a reduced sentence,” said United States Attorney Matthew Schneider.  “The Court’s sentence also ensures that full restitution will be paid to the UAW and its membership for Robinson’s criminal activity.”   

“Robinson conspired with senior union officials to embezzle UAW funds in order to personally enrich himself at the expense of the hard-working men and women of the UAW.  We will continue to work with our law enforcement partners to investigate corrupt union officials who violate their duty to the members they represent for personal gain,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

"Today's sentencing is the next step in a long campaign of restoring the UAW to its core purpose – working for the rights of its members," said Timothy Waters, Special Agent in Charge of FBI Detroit. "To his credit, Mr. Robinson took responsibility for the damage his actions caused to the UAW and worked to correct them. The sentence today reflects that but should not overshadow the seriousness of his conduct."

“IRS Criminal Investigation is committed to investigating anyone who intentionally conceals income from the IRS,” stated Sarah Kull, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Detroit Field Office.

 “Edward Robinson betrayed the trust of his fellow union members and failed in his fiduciary duties by using his union position to carry out elaborate embezzlement schemes to steal over $250,000 from the UAW for the personal benefit of himself and other high-ranking union officers,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “Today's conviction leaves no question as to the agency’s commitment to seek justice when anyone puts personal financial gain ahead of the best interests of their fellow union members.”

  The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Steven Cares, and Adriana Dydell.