Eastern District of Michigan

Michael Grimes, a former high-level official in the UAW’s General Motors Department, was sentenced to 28 months in federal prison today for conspiring with other UAW officials to engage in honest services fraud by taking over $1.5 million in bribes and kickbacks from UAW vendors and contractors and for conspiring to launder the proceeds of the scheme, 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, Steven M. D’Antuono, 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.

In September, Michael Grimes, 66, of Ft. Myers, Florida, who is a native of Grand Blanc, Michigan, pleaded guilty to conspiring with two other high-level UAW officials—Joseph Ashton and Jeffrey Pietrzyk—to take millions of dollars in bribes and kickbacks from vendors doing business with the joint UAW-GM Center for Human Resources (CHR). Ashton, 71, of Ocean View, New Jersey, and Pietrzyk, 78, of Grand Island, New York, have since pleaded guilty. This “pay to play” scheme which began in 2006, and lasted over twelve years, reaped Grimes over $1.5 million which he spent on property, houses, cosmetic surgery for a relative, and a host of other items which never benefited the UAW membership.

The CHR is supposed to be a center for training UAW workers employed by GM. But Grimes, Pietrzyk, and Ahston, each of whom served on the Executive Board for the CHR, abused the power they had to approve contracts with vendors for watches, jackets, backpacks, and UAW stores at GM manufacturing facilities, and demanded kickbacks for their own financial gain. For example, in 2011, Grimes, Ashton and Pietrzyk demanded that a vendor give them a $300,000 kickback on a $6 million contract to purchase 50,000 jackets emblazoned with “Team UAW-GM.”  Grimes collected the $300,000 kickback and delivered the proceeds to Ashton and Pietrzyk. Grimes demanded an additional kickback of $525,000 from the same vendor for the same jacket contract. 

In another scheme to defraud, Grimes, Ashton and Pietrzyk demanded kickbacks on a $3.9 million contract for the CHR to buy 58,000 watches for all UAW members employed by GM. The UAW officials demanded over $300,000 in kickbacks on the watch contract to be distributed between 2013 through 2016. Some of the kickbacks were distributed in the form of checks disguised as tens of thousands of dollars in payments for “antique furniture.” The majority of the kickbacks were distributed as cash.  In 2014, the UAW-GM CHR received the 58,000 watches from the vendor. However, the watches were never distributed to UAW members.  Instead, the watches have been sitting in storage in a warehouse for over five years.                    

Grimes also conspired to launder the proceeds of the kickback scheme by using a series of complicated schemes, including funneling the money through a sham consulting company run by a relative, to conceal and disguise the bribes and kickbacks. 

As part of this investigation, the government has forfeited money and real property from Grimes totaling over $1.5 million.  

Grimes is one of many to plead guilty and be sentenced in connection with the ongoing criminal investigation into corruption within the UAW. The following 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), and former UAW Vice President Norwood Jewell (15 months in prison). Most recently, former UAW Region 5 Director Vance Pearson pleaded guilty last week.      

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.

“It is imperative that the UAW leadership continues to be held accountable to their fiduciary duties and responsibilities,” said United States Attorney Matthew Schneider. “Today’s sentence represents another step forward in our efforts to target and prosecute corrupt UAW leaders who place their drive for personal enrichment ahead of the mission of the union.” 

“Michael Grimes engaged in a fraudulent scheme to deprive the International United Auto Workers Union of his honest services by demanding and accepting over $1.5 million in bribes and kickbacks from vendors. Grimes' criminal actions were an effort to enrich himself at the expense of dues-paying UAW members.  We will continue to work with our law enforcement partners to investigate those who facilitate illegal payments to union officials entrusted to negotiate on behalf of union members,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

“The trail of money has led to the truth, an ugly truth of bribery, kickbacks and sham corporations, ultimately netting Michael Grimes $1.5 million dollars at the expense of UAW workers.  Today’s sentence brings the UAW one step closer to removing the greedy and corrupt leadership that once embodied UAW officials across the country,” said Sarah Kull, Special Agent in Charge of Detroit’s IRS Criminal Investigation.

“Michael Grimes failed his fiduciary duties as a UAW official and betrayed the trust of the UAW membership when he used his union position to demand bribes and kickbacks from vendors in excess of $1.5 million so that he could enrich himself and other UAW officials,” 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 Frances Carlson and Eaton Brown.

Former Detroit Police Officer Michael Mosley, age 48, pleaded guilty today before the Honorable George Caram Steeh to bribery for taking $15,000 in cash bribes from a drug trafficker, announced U.S. Attorney Matthew Schneider.

Joining Schneider in the announcement was Steven M. D’Antuono, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

Officer Mosley is a nineteen-year veteran of the Detroit Police Department. As stated during Mosley’s guilty plea, in April 2019, Mosley was a member of the Police Department’s Major Violators Unit.  On April 3, 2019, Detroit police officers, including Officer Mosley, searched a drug trafficker’s house pursuant to a search warrant.  The search uncovered two kilograms of heroin, one kilogram of cocaine, and six firearms.  The drug trafficker confessed to owning the three kilograms of drugs to Officer Mosley, and the trafficker signed a confession.  After the April 3 search, Officer Mosley remained in contact with the drug trafficker in an effort to secure the trafficker’s cooperation concerning other criminal activity.

Subsequently, the drug trafficker offered Officer Mosley a cash bribe of $15,000 in exchange for not pursuing criminal charges based on the three kilogram drug seizure.  Officer Mosley agreed to the deal.  On May 2, 2019, Officer Mosley collected $10,000 in cash that the drug dealer left for Mosley in the backyard of an abandoned house in Detroit.  On May 23, 2019, Officer Mosley accepted another $5,000 in cash left for him by the drug trafficker at the abandoned house.  In exchange, Officer Mosley gave the drug trafficker the original copy of his confession. 

In addition to pleading guilty to one count of bribery, Mosley will be forfeiting the $15,000 he took in bribes.

U.S. Attorney Matthew Schneider commended the outstanding work of the FBI in conducting this criminal investigation of a corrupt police officer.

“It’s rare that a police officer commits a crime, but in this case Officer Mosley betrayed his oath as a police officer, and he betrayed the citizens of Detroit and the vast majority of his fellow officers who seek to protect and serve with integrity,” stated United States Attorney Matthew Schneider.  “This prosecution demonstrates that we will not tolerate public officials who abuse their authority and seek to use their power to line their own pockets.”

 “The citizens of Detroit deserve better from their public servants. Wrongdoing by police officers undermines the public's trust and confidence in law enforcement officers who are sworn to defend and uphold the law,” said Special Agent in Charge D’Antuono. “The men and women of the Detroit Police Department are dedicated to serving this community and misconduct by one of its officers is not a reflection of the entire force. However, the FBI will do everything in its power to bring corrupt police officers to justice and to restore faith in the integrity of law enforcement throughout the city.”

The investigation of this case was conducted by the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, David A. Gardey, and Shankar Ramamurthy.

Karar Alfadhili, a resident of Westland, Michigan, was indicted yesterday on three counts of knowingly and willfully making and subscribing, under penalties of perjury, false Forms 1040 U.S. Individual Income Tax Return (Form 1040) for tax years 2013, 2014, and 2015 in violation of the Internal Revenue Code, announced United States Attorney Matthew Schneider. 

Schneider was joined in the announcement by Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations.

According to the indictment, Alfadhili reported false earnings and federal income tax withholdings on each of his Forms 1040 filed with the IRS.  Alfadhili’s earnings and withholdings from 2013 through 2015 were reported on an accompanying Form W-2 to the Forms 1040 for employer KASP Incorporated.

Between tax years 2013 and 2015 Alfadhili’s reported range of earned income was $468,000 to $882,000 and federal income tax withholding was $184,424 to $349,161.  In total the false earnings Alfadhili reported to the IRS were over two million dollars.

Each count of making and subscribing a false return under penalties of perjury in violation of Title 26 U.S.C. § 7206(1) is punishable up to 3 years imprisonment.

The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.

This case was investigated by special agents of the Internal Revenue Service, Detroit Field Office and is being prosecuted by Assistant United States Attorney Carl Gilmer-Hill

Vance Pearson, the former Director of the United Auto Worker’s Region 5 and a former member of the UAW’s International Executive Board, pleaded guilty today to conspiring with other UAW officials to embezzle hundreds of thousands of dollars of UAW dues money and to further racketeering activity 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, Steven M. D’Antuono, 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.

Vance Pearson, 58, of St. Charles, Missouri, pleaded guilty to conspiring to embezzle UAW dues money and conspiring to use a facility of interstate commerce to aid 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’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.  As Region 5 Director, Pearson was a member of the UAW’s International Executive Board, which governs the affairs of the union.  Between 2016 and June 2018, Pearson served as the Assistant Director of Region 5.   

During the plea hearing, Pearson admitted that he conspired with at least six other senior UAW officials in a multiyear conspiracy to embezzle money from the UAW for the personal benefit of Pearson and other 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 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. 

For example, Pearson and other senior UAW officials used UAW money to buy sets of golf clubs, individual clubs, and other golf equipment that cost thousands of dollars.  They spent over $100,000 to purchase golf clothing, shirts, hats, sunglasses, golf balls, jackets, and fashion shorts from various pro shops at golf courses in California and Missouri.  And they spent tens of thousands of dollars in UAW funds at the Indian Canyons golf course in Palm Springs on green fees for golfing outside of the time of the UAW conferences.

Pearson and other UAW officials also spent hundreds of thousands of dollars in UAW funds to rent villas in gated communities in Palm Springs for senior UAW officials for long periods of time outside of the dates set for the UAW conferences.  In one instance, a high-level UAW official received the use of a Palm Springs villa for four months, all paid for with UAW funds.     UAW funds were also used to pay for meals for senior UAW officials at high-end restaurants outside the time periods of the UAW conferences.                

As part of the conspiracy, Pearson and his co-conspirators embezzled over $60,000 in UAW funds for the purchase of boxes of cigars, humidors, cigar cutting equipment, and lighters from 2014 to 2018.  The costs of the cigars were hidden within the expenses for the Region 5 conferences.  Pearson caused the UAW to file false reports with the Department of Labor wherein the various embezzlement activity was concealed.

During search warrants executed by federal law enforcement in August 2019 in connection with the investigation, agents recovered dozens of cigars, humidors, and other tobacco-related items in the personal residences of UAW officials.  In addition, agents seized hundreds of high-end bottles of liquor, hundreds of golf shirts, multiple sets of golf clubs, and over thirty thousand dollars in cash.  Agents seized sets of golf clubs from Pearson’s UAW office and from the home of another UAW official which were paid for with embezzled UAW funds.

Besides conspiring with other UAW officials to embezzle UAW funds, Pearson also conspired with UAW officials to aid racketeering crimes by using a facility of interstate commerce, in this case, the internet and electronic mail, to aid racketeering activity.

Based on his racketeering and embezzlement conspiracy conviction, Pearson faces a maximum of five years in prison and a fine of up to $250,000.

As part of his guilty plea, Pearson agreed to forfeit $81,000 from his so-called “Flower Fund.”  A UAW Regional Director’s Flower Fund was ostensibly to be used for the purchase of flowers for the funerals of UAW members and their families.  In practice, however, UAW officials have been forced to pay into the flower funds and the money has been exploited by senior UAW officials for their own personal use.  In addition, Pearson agreed to forfeit $38,000 held in a “Members in Solidarity,” which was an account ostensibly to be used for campaign expenses associated with UAW elections.  Finally, Pearson agreed to forfeit the set of custom made Titleist golf clubs seized from his office and which was paid for with UAW dues money.          

Pearson is the twelfth defendant to plead guilty in connection with the ongoing criminal investigation into illegal payoffs to UAW officials by FCA executives and corruption within the UAW itself.  The following 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), and former UAW Vice President Norwood Jewell (15 months in prison).  In addition, the following UAW officials have pleaded guilty and are awaiting sentencing:  former UAW Vice President Joseph Ashton, former senior UAW official Michael Grimes, and former senior UAW official Jeffrey “Paycheck” Pietrzyk.  Former UAW Official Edward “Nick” Robinson has been charged in a criminal information, and his case is still pending.         

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.

“Today’s guilty plea is one more leap forward in our drive to prosecute corruption at the highest levels of the United Auto Workers union,” said United States Attorney Matthew Schneider.  “The UAW needs to be led by men and women of integrity who are dedicated to bettering the lives of the hard-working members of the union, not dedicated to lining their own pockets.” 

“Vance Pearson conspired with senior UAW officials to embezzle hundreds of thousands of dollars in union dues to further their racketeering activity.  His actions were an effort to personally enrich himself at the expense of dues-paying UAW members. 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.

“Mr. Pearson is the twelfth UAW official to plead guilty as a result of a criminal investigation which has made clear that corruption has become systemic within this organization,” said SAC D’Antuono. “The FBI and our law enforcement partners are committed to doing what is necessary to restore this great organization to its original purpose – serving hard-working union families, not enriching the powerful few.”

“As Director of the UAW’s Region 5, Vance Pearson was responsible for serving the interests of tens of thousands of UAW members across 16 states. Instead, Pearson assisted in orchestrating an ongoing criminal enterprise to enjoy a life of absolute luxury, spending hundreds of thousands of dollars with his co-conspirators in union member dues on golf, custom clubs, cigars, booze, vacations and high-end restaurants.  IRS-CI is committed to investigating crimes of embezzlement, conspiracy and racketeering,” stated Sarah Kull, Special Agent in Charge of Detroit’s IRS Criminal Investigation.   

“Vance Pearson failed his fiduciary duties as a UAW officer when he used his position to embezzle over $100,000 of UAW funds so he and his co-conspirators could live a lavish lifestyle at the expense of the union members he was elected to represent,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “OLMS will continue to work with the U.S. Attorney’s Office and our fellow law enforcement agencies to eliminate the corruption within the UAW International Union.”

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

An owner of an engineering firm, Fazlullah Khan , 58, of Troy, was sentenced yesterday to 132 months as a result of having been convicted by a jury on four counts of bribery, United States Attorney Matthew Schneider announced. 

Schneider was joined in the announcement by Steven D’Antuono, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

Khan was convicted in July, 2019 after a five day trial that was conducted before United States District Judge Robert H. Cleland in Port Huron, Michigan.  The jury deliberated approximately an hour and a half before returning their guilty verdicts.

According to evidence presented at trial, in 2014, Khan bribed one public official of Washington Township with $10,000 in cash in return for a million dollar per year engineering contract, and another public official there with a secret financial interest in a property development deal worth hundreds of thousands of dollars for his assistance with the contract and efforts to get water and sewer lines to Khan’s property.  Unbeknownst to Khan, both township officials that he was trying to bribe were working with the FBI.

“Our office is continuing our battle against bribery and corruption every day and this sentence will hopefully serve as a deterrent to others who seek to engage in a pay-to-play scheme,” United States Attorney Matthew Schneider stated.

The sentence in this case should serve as a deterrent to anyone who tries to entice a public official to behave against the public’s interest through offering bribes,” said Special Agent in Charge D’Antuono. “Corruption in any form degrades the integrity of our democracy and will not be tolerated.  Our justice system relies upon citizens to report this type of criminal activity and I would encourage anyone who has information about public corruption to contact the FBI."

This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan.  The investigation of this case was conducted by the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorneys R. Michael Bullotta and Steven Cares.

The conviction of Khan brings to 22 the number of individuals convicted in this corruption investigation.

 

A Detroit-area retail vendor will spend 24 months in prison for defrauding the federal Supplemental Nutrition Assistance Program, also known as the food stamp program, U.S. Attorney Matthew Schneider announced today.

Joining Schneider in the announcement was Anthony V. Mohatt, Special Agent-in-Charge of the U.S. Department of Agriculture Office of the Inspector General (USDA-OIG) Chicago Regional Office.

Ali Youssef Aoun, 52, was sentenced on February 7, 2020, by U.S District Court Judge Robert H. Cleland after pleading guilty to three counts of defrauding the SNAP program. 

Aoun, who has owned or operated convenience stores in Detroit for at least 18 years, took advantage of vulnerable SNAP recipients by exchanging benefits for cash, while only paying fifty cents on the dollar. He would disguise the benefits as income into his stores or use them to purchase items for himself. Trading SNAP benefits for cash is a violation of federal law. Over four years, Aoun fraudulently obtained approximately $341,360.41 from the federal SNAP program. In addition to the term of imprisonment, the Court the entered a forfeiture money judgment in the amount of $341,360.41.

In delivering the sentence, the Court stated Mr. Aoun’s crimes were “utterly unacceptable” and that the verdict should “stand as a beacon to others in a similar situation.”

United States Attorney Schneider said of the verdict, “Defendant Aoun committed his fraud on the backs of people who truly need the SNAP program to put food on the dinner table and make ends meet. His crime was motivated solely by greed and today’s sentence should send a message to all SNAP vendors that our office takes fraud seriously and will prosecute offenders to the full extent of the law.”

USDA Special Agent-in-Charge Anthony V. Mohatt said, "The Supplemental Nutrition Assistance Program helps put healthy food on the table of 1.3 million Michigan residents each month. The criminal activities of the store owner targeted during this investigation deprived needy citizens of the Detroit area access to nutritious meals. The USDA Office of Inspector General will continue to target those who prey on federal food assistance programs, and their recipients."

The case was investigated by agents of the U.S. Department of Agriculture, Office of Inspector General, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit.  Assistant United States Attorneys Tim Wyse and Shankar Ramamurthy prosecuted the case. 

 

 

A patient recruiter was sentenced to 60 months in prison yesterday for receiving more than $1 million in illegal kickback payments from numerous home health agencies from around the country in exchange for providing information on Medicare beneficiaries to home health agencies, who then used that information to submit fraudulent claims to Medicare.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Steven M. D'Antuono 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’s (HHS-OIG) Chicago Regional Office made the announcement.

Dominic Trumbo, 45, of Lexington, Kentucky, was sentenced by Chief U.S. District Judge Denise Page Hood of the Eastern District of Michigan, who also ordered Trumbo to pay $1,010,552 in restitution and forfeit $203,300.  In July 2019, after a four-day trial, a federal jury found Trumbo guilty of one count of conspiracy to pay and receive health care kickbacks and three counts of solicitation or receipt of kickbacks in connection with a federal health care program.

According to the evidence presented at trial, Trumbo, owner of Trumbo Consulting Agency of Stafford, Virginia, recruited, or paid others to recruit, more than 4,000 Medicare beneficiaries for multiple home health companies across the country.  The evidence showed that Trumbo instructed his employees to cold call Medicare beneficiaries and offer incentives to induce them to sign up for home health care.  Trumbo then sold the Medicare beneficiary information to home health agencies in exchange for illegal kickback payments. The evidence at trial further showed that Trumbo and his co-conspirators created sham contracts and fake invoices in an attempt to conceal their scheme to defraud Medicare.

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.  Trial Attorneys Patrick Suter and Steven Scott of the Fraud Section prosecuted the case. 

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.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

United States District Judge Victoria A. Roberts sentenced convicted former Wayne County airport official, James Warner, 52, of Commerce Township, to 10 years’ imprisonment today. A federal jury convicted Warner last June of ten counts of conspiracy, federal program bribery, federal program theft, money laundering and obstruction of justice, in connection with maintenance and repair contracts for runways and parking structures at Detroit Metropolitan Airport, United States Attorney Matthew Schneider announced today. 

Schneider was joined in the announcement by Steven M. D'Antuono, Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Andrea M. Kropf, Special Agent-in-Charge of the Midwestern Region of the United States Department of Transportation Office of Inspector General.

According to the evidence provided during the three-week trial, from May of 2010, through August of 2014, while employed as a field inspector at the Wayne County Airport Authority (WCAA), Warner used his position of trust at the airport to direct more than $43 million in airport infrastructure projects to three coconspirators—William Pritula, Douglas Earles and Gary Tenaglia—in exchange for more than $6 million in kickbacks. This amount represents the highest bribe totals in the Eastern District of Michigan’s history, and one of the largest in the country.

On one occasion, Warner falsified the square footage and asphalt depth on an airport roadway project, creating and later approving a $938,000 bill from Pritula’s company for work which Pritula’s subcontractor only invoiced $275,000. Warner and Pritula then split the profits evenly. On another occasion, Earles’s company submitted two separate invoices—one for $13,429.63, and another for $18,055.26—for the replacement of backflow preventers at the airport. However, as the evidence revealed at trial, the backflow preventers listed in these invoices were neither purchased nor installed at the airport. Since Warner was the public official responsible for verifying these falsified invoices, he was able to conceal this fraud from the airport and authorize the airport to pay Earles for work that was never completed—a percentage of which was ultimately kicked back to Warner.

Each of Warner’s coconspirators, Pritula, 69, of Romulus, Earles, 60, of White Lake, and Tenaglia, 65, of Commerce Township have all pleaded guilty to conspiracy to commit bribery and theft.”  To date, the government has seized $11 million from Warner and his co-conspirators.

United States Attorney Schneider stated, “This case is yet another example of our office’s commitment to vigorously prosecute corrupt public officials who elevate their own greed over the best interests of the people of Michigan.” 

“Through bribery, fraud, and kickbacks, Mr. Warner stole the hard-earned money of the men and women who fund the services provided at Detroit Metropolitan Airport,” said SAC D’Antuono. “I am incredibly proud of the hard work of agents from the FBI and the US Department of Transportation, Office of Inspector General, and attorneys from the United States Attorney’s Office, whose collective efforts helped bring a measure of justice to this defendant."

 “With one of the largest bribes prosecuted to date in the Eastern District of Michigan, today’s sentencing reinforces our commitment to rooting out egregious infrastructure fraud,” stated Andrea M. Kropf, DOT-OIG Regional Special Agent-In-Charge. “It sends a message to public officials who may be motivated by greed to abuse their positions that they will be met with the full force of the criminal justice system.”

The investigation of this case was conducted by the Federal Bureau of Investigation and the Department of Transportation Office of Inspector General.  The case is being prosecuted by Assistant U.S. Attorneys Eaton P. Brown and Mark Chutkow.

A federal jury found four Detroit-area physicians guilty today of health care fraud charges for their roles in a scheme to administer unnecessary back injections to patients in exchange for prescriptions of over 6.6 million doses of medically unnecessary opioids.  Patients were required to get the injections in order to get the prescriptions, some of which were resold on the street by drug dealers, the evidence at trial showed.

After a four-week trial, Spilios Pappas, 62, of Lucas County, Ohio, Joseph Betro, 59, of Oakland County, Michigan, Tariq Omar, 62, of Oakland County, Michigan, and Mohammed Zahoor, 53, of Oakland County, Michigan, were each found guilty of one count of conspiracy to commit health care fraud and wire fraud, and one count of health care fraud.  Sentencing has been scheduled for July 16 for Pappas, July 17 for Betro, July 24 for Zahoor and July 30 for Omar before Chief U.S. District Judge Denise Page Hood of the Eastern District of Michigan, who presided over the trial.  Seventeen other defendants, including eight other doctors, previously pled guilty in connection with the investigation. 

“These physicians subjected patients to medically unnecessary injections to reap millions in fraudulent billings.  Worse still, they incentivized those treatments by offering opioid prescriptions in sky-high dosages meant for the terminally ill,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “Today’s verdict shows that the Department will root out physicians who let dollar signs rather than medical need drive their treatment of patients.” 

“These doctors sought to enrich themselves by performing unnecessary back injections in exchange for highly addictive opioids, violating their Hippocratic Oath to do no harm,” said U.S. Attorney Matthew Schneider of the Eastern District of Michigan.  “Our office will continue to prioritize the prosecution of doctors whose criminal behavior puts patients at risk.”

“Physicians take an oath that obligates them to do no harm to their patients.  These four men willingly broke that oath – by providing unnecessary drugs and conducting unnecessary procedures – solely to line their pockets,” said Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Field Office.  “This guilty verdict sends a message to any doctor or healthcare professional who prioritizes profit or does harm to their patients under the guise of providing health care will be subject to the full investigative resources of the FBI and our law enforcement partners.”

“The public trusts that physicians will put patients’ health and safety first.  These defendants violated that trust in pursuit of their own financial gain,” said Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services, Office of Inspector General Chicago Region.  “The OIG takes matters of this nature very seriously and will continue to work with our law enforcement and prosecutorial partners to hold individuals who commit these kinds of criminal acts accountable.”

According to evidence presented at trial, from 2008 to 2016, Pappas, Betro, Omar and Zahoor worked at numerous medical clinics in Michigan and Ohio, which were operated under the name of the Tri-County Group (Tri-County) and owned by co-conspirator Mashiyat Rashid.  While the defendants worked at Tri-County, they engaged in a scheme to defraud Medicare of over $150 million by billing for medically unnecessary facet joint injections, unnecessary urinary drug screens, home health and a myriad of other unneeded ancillary services.  The evidence showed that patients, some of whom were suffering from legitimate pain and others of whom were drug dealers or opioid addicts, were offered prescriptions of oxycodone 30 mg by the defendants, but were forced to submit to unnecessary facet injections in exchange for the prescriptions. 

Testimony at trial established that the patients experienced more pain from the shots, in some case, than from the pain they had purportedly come to have treated, 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 four defendants were all ranked in the top 25 doctors for dollars paid by Medicare for facet joint injections, even though they only worked a few hours a week.  The defendants practice was described during trial as an assembly line, where the four defendants earned anywhere from $1,100 to $3,500 an hour for performing the same injections on nearly every patient.

In addition to the unnecessary injections, the defendants signed a standing order for urine tests for each patient and for every visit to be sent to National Laboratories, also owned by Rashid, in exchange for tens of thousands of dollars in illegal kickbacks, the evidence showed.  The evidence further established that the physicians performed a quantitative test for 56 different drugs for every patient at every visit, regardless of whether the patients presented any reason for the test.

The evidence further established that the physicians provided prescriptions for narcotics, including opioids and benzodiazepines, as an incentive to patients who received the injections.  Moreover, the evidence established that the dosage of opioids being provided to patients was suitable only for terminally ill cancer patients.  Evidence from Michigan Automated Prescription System showed that the four defendants were among some of the top prescribers of oxycodone 30mg in the state of Michigan. 

In 2015, Pappas was the number seven prescriber of oxycodone 30mg in the state of Michigan; Betro 18; Omar 16; and Zahoor 38 the evidence showed.  At trial, oxycodone 30mg was described as the “gold standard” of drugs diverted to illegal purposes on the street.  Evidence showed that all four defendants were in the top 40 out of 50,000 Michigan prescribers even though they had conspired with Rashid to “stay under the radar” of the U.S. Drug Enforcement Administration by working only a few hours a week.  The doctors would see anywhere from 15-25 patients in a two to four hour shift, and then bill Medicare for office visits and procedure codes suggesting that they spent as much as two hours and 22 minutes with each patient.  Every piece of the fraud was consistently implemented and applied to over 94 percent of the patients in the clinic.

The FBI and HHS-OIG investigated this case.  Assistant Chief Jacob Foster and Trial Attorneys Tom Tynan and Anthony Burba of the Criminal Division’s Fraud Section are prosecuting the case. 

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.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

A former Oakland County lawyer was sentenced yesterday, January 30, 2020, to serve 70 months in federal custody on one count of conspiracy to commit bank fraud, and three counts of bank fraud, United States Attorney Matthew Schneider announced today.

Paul Nicoletti, age 60, received the sentence from the Honorable Victoria A. Roberts, United States District Judge, in Detroit, Michigan. Judge Roberts also ordered that the defendant serve two years on supervised release after his release from federal custody and pay restitution totaling $5,299,751.58. A jury returned guilty verdicts against Mr. Nicoletti on May 5, 2019 after a seven-day trial.  

According to the evidence introduced during the trial, Mr. Nicoletti, a lawyer and owner of a title company in Bloomfield Hills, Michigan, became involved in a scheme to obtain large mortgage loans from Fifth Third Mortgage, Michigan, a lending arm of Fifth Third Bank. Although somewhat complicated, the essence of the scheme involved real estate developers, a corrupt loan officer and Mr. Nicoletti working together to obtain large mortgage loans from Fifth Third Mortgage, Michigan, purportedly for the purchase and development of high-end properties in Bloomfield Hills and Birmingham, Michigan, based on numerous false statements both in the application and closing process of the loans, resulting in Fifth Third Mortgage, Michigan releasing over eight million dollars in loan proceeds.

More specifically, one or more of the conspirators would find and recruit “straw buyers” to serve as mortgage loan applicants for the purchase of real property which the conspirators wanted to purchase and develop. The straw buyers, who viewed themselves as “investors,” were paid a fee for the use of their names and credit histories in the loan applications and real estate transactions, and were promised a portion of the expected profit after the property was developed and resold. The straw buyers had no intention of living at or actually exercising ownership and control of the property, despite representations to the contrary in their applications, and in closing documents. Despite their good credit ratings, the straw buyers did not have the assets or income necessary to qualify for mortgages in the substantial amounts sought. Thus, false information pertaining to their income and assets was included in the mortgage loan applications to qualify them. Mr. Nicoletti’s role was to facilitate the fraudulent loans as the title agent by, among other things, falsely verifying that the borrowers made substantial down payments on the properties. To do so, Mr. Nicoletti obtained cashiers checks, issued after the loan proceeds were released to his Continental Title account and which were funded by the loan proceeds themselves, bearing the names of the straw buyers as “remitters,” which he then re-deposited into his Continental Title account, making it appear as though the borrowers funded the substantial down payments. In fact, the borrowers brought no money to the closings. When the fraud was discovered by authorities, Mr. Nicoletti counseled the destruction of evidence of the fraud and also personally destroyed relevant electronic and paper records.     

Mr. Nicoletti was the sixth person convicted as a result of this investigation. The loan officer, a mortgage broker, an appraiser and several of the real estate developers have previously been sentenced after entering guilty pleas relating to the scheme. The investigation was conducted by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Craig Weier and John Neal.

Eight individuals from around the country who were charged with conspiracy to commit visa fraud and harboring aliens for profit, have been sentenced, announced United States Attorney Matthew Schneider. 

Schneider was joined in the announcement by Special Agent in Charge Vance Callender of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit.

Sentenced were:

Barath Kakireddy, 30, of Lake Mary, FL, sentenced to 18 months;                 

Suresh Kandala, 32, of Culpeper, VA, sentenced to 18 months;

Phanideep Karnati, 36, of Louisville, KY, sentenced to 6 months;

Prem Rampeesa, 27, of Charlotte, NC, sentenced to 12 months and one day;                     

Santosh Sama, 29, of Fremont, CA, sentenced to 24 months;                       

Avinash Thakkallapally, 29, of Harrisburg, PA, sentenced to 15 months

Aswanth Nune, 27, of Atlanta, GA, sentenced to 12 months and one day;                  

Naveen Prathipati, 27, of Dallas, TX, sentenced to 12 months and one day                      

According to court records, from approximately February 2017 through January 2019, the defendants, a group of foreign citizens, conspired with each other and others to fraudulently facilitate hundreds of foreign nationals in illegally remaining and working in the United States by actively recruiting them to enroll into a metro Detroit private university that, unbeknownst to the conspirators, was operated by HSI special agents as part of an undercover operation.  As part of the scheme, the defendants/recruiters assisted foreign citizen “students” in fraudulently obtaining immigration documents from the school and facilitated the creation of false student records, including transcripts, for the purpose of deceiving immigration authorities. The illegal documents obtained as a result of the conspirators’ actions were based on false claims, false statements, and fraud since the purported foreign students had no intention of attending school, nor attended a single class, and were not bona fide students. All participants in the scheme knew that the school had no instructors or actual classes. The defendants intended to help shield and hide their customers/”students” from United States immigration authorities for money and collectively profited in excess of a quarter of a million dollars as a result of their scheme.

“As this case shows, the well-intended international student visa program can be exploited and abused,” stated United States Attorney Matthew Schneider. “These foreign “students” weren’t students at all – they were scam artists trying to stay in our country illegally, and they all fully knew there were no classes to attend.”

“Today’s sentencing of the final criminal defendant in HSI’s University of Farmington investigation makes it unequivocally clear that every individual who participated in this scheme knew it was an illegal pay-to-stay scam,” said Vance Callender, HSI Detroit special agent in charge.  “Building off lessons learned from the September 11 attacks, HSI is dedicated to protecting the homeland in part by ensuring the integrity of the Student Visa Program so it can continue to benefit everyone.  Unscrupulous schools whose sole motive is profit and not education do exist and this investigation not only exposed these types of criminals, but has helped create a feeling of omnipresence by law enforcement that will make others think twice before exploiting the program.”

Since 2015, the case was investigated by special agents from the Detroit HSI field office.

The case was prosecuted by Assistant U.S. Attorneys Ronald Waterstreet, Timothy McDonald and Brandon Helms with the United States Attorney’s Office for the Eastern District of Michigan in Detroit.

A Detroit man pleaded guilty today to conspiring with others to force and coerce at least 6 women to engage in prostitution in the Detroit area, announced U.S. Attorney Matthew Schneider.

Schneider was joined in the announcement by Special Agent in Charge Steven M. D’Antuono, Federal Bureau of Investigation, Detroit Division.

Pleading guilty was Jhamall K. McGaughy, 37.

According to court records, McGaughy admitted that he recruited women whom he knew struggled with drug addictions and used that addiction for his profit. McGaughy gave drugs to them at first, including heroin and crack cocaine, but then required them to work as prostitutes in order to get money to buy more drugs from him. McGaughy knew that the women would suffer from excruciating withdrawal symptoms, known as being “dope-sick,” if they did not receive regular doses of drugs, and he manipulated the supply of drugs to keep them on the edge of dope-sickness to coerce them into acts of prostitution. McGaughy also used force against some of the women if they tried to purchase drugs from other suppliers.

Under the terms of McGaughy’s plea agreement, he is looking at a minimum of 10 years in federal prison when he is sentenced on May 5, 2020.

The case was investigated by special agents of the FBI and was prosecuted by Assistant United States Attorneys Thomas Franzinger and Dan Hurley.

Detroit, MI – The United States Attorney’s Office for the Eastern District of Michigan announced today that it has reached a settlement with Joyce’s Farm Market, a produce store and greenhouse located in Ottawa Lake, Michigan to resolve an allegation that it refused service to 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 woman who is blind who alleged that she was told to leave the market because of her dog, even after she explained that it was a service animal.  During the investigation, physical barriers to access were also discovered at the market.

“Service animals are not pets.  People with disabilities who are accompanied by a service animal are entitled to come and go freely throughout their communities, including shopping establishments, on an equal basis as others,” said Matthew Schneider, U.S. Attorney for the Eastern District of Michigan. “We are pleased that Joyce’s Farm Market has agreed to take steps to ensure that service animals are properly recognized and that the people who use them are welcomed and accepted.”

Under the settlement agreement, Joyce’s Farm Market will adopt a non-discrimination policy with specific service animal provisions, train all its employees on the ADA, remove barriers to access in the store building and parking lot, and pay money damages to the complainant.

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 Joyce’s Farm Market, 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. 

A former pastor and counselor from Burtchville, Michigan (just outside Port Huron) was sentenced yesterday to 17 years in prison for sexually exploiting preteen and teenage girls, announced United States Attorney Matthew Schneider of the Eastern District of Michigan.   

Schneider was joined in the announcement by Special Agent in Charge Steven M. D’Antuono, Federal Bureau of Investigation, Detroit Division.

Sentenced was Jackie Douglas Woodburn, 64, who was the Director of the Colonial Woods Christian Counseling Center, a place he worked for 28 years.  In addition to his prison sentence, Woodburn will serve 5 years of supervised release upon his release from custody.  Judge Paul D. Borman imposed the sentence.  

According to court records, Woodburn used an unmonitored chatroom-based website to target and manipulate girls.  Woodburn, who pretended to be a teenage boy when speaking to preteen and teenage girls on the website, isolated his victims by transitioning conversations from the website to email and popular social media application platforms.  After isolating the victims, Woodburn used his sizable age, educational, and life experience advantages over the girls to manipulate, pressure, coerce, and entice the girls into undressing and engaging in sexual acts on camera.  The Indictment alleged that Woodburn sexually exploited a 12 year-old girl from Texas, a 13 year-old girl from Kansas, and attempted to entice a 9 year-old girl from Virginia.  However, the FBI’s investigation revealed that Woodburn targeted and exploited several additional victims not identified in the Indictment. 

“It’s completely reprehensible for any person — let alone a pastor and counselor — to abuse young children in this way,” said United States Attorney Matthew Schneider. “We hope this sentencing will bring some closure to the innocent victims and their families who were so badly harmed by the defendant.”

"By the nature of his position, Mr. Woodburn was entrusted with protecting the mental and spiritual health of his community," said SAC D'Antuono. "But he was a wolf in sheep's clothing - looking to prey on the most vulnerable members of our society. Our office remains committed to working with our state and local partners to find and hold accountable this type of sexual predator."

Assistant United States Attorneys April N. Russo and Kevin M. Mulcahy of the Eastern District of Michigan, prosecuted the case.  The FBI’s Detroit Field Office investigated the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.

 

A Detroit resident was convicted by a federal jury today on charges of sex trafficking using force and coercion, distribution of controlled substances, and maintaining a drug premises, announced United States Matthew Schneider.

Schneider was joined in the announcement by Special Agent in Charge Steven M. D’Antuono, Federal Bureau of Investigation, Detroit Division.

Richard Knider Jackson, 70, of Detroit, was convicted following a 5-day jury trial before United States District Judge Stephen J. Murphy, III.  The jury deliberated approximately 2 hours before returning their verdicts.

“This defendant treated his victims like goods to be bought and sold,” stated U.S. Attorney Schneider.  “He targeted vulnerable women and exploited them for his own profit. He manipulated his victims’ drug addictions and provided them with a constant supply of heroin and crack cocaine. We hope that cases like this one will raise awareness that sex traffickers are exploiting victims in our communities."

Jackson was also convicted of distribution of heroin and crack cocaine and maintaining a drug premises.

Evidence presented at the trial established that a woman called 911 in 2016 pleading for help. When Detroit Police responded, the officers quickly determined that the location was used for human trafficking. In the home, officers observed a house in complete disrepair, with signs of intravenous drug use throughout the home. Defendant had installed a security gate within the home at the top of the stairs.

Sentencing is set for April 16, 2020. Jackson faces a mandatory-minimum sentence of 15 years in prison, and up to life.

The case was investigated by special agents of the FBI and was prosecuted by Assistant United States Attorneys Sara D. Woodward and Barbara Lanning.

An employee of Cummins Bridgeway, LLC (“CBL”) and Cummins Inc. (“Cummins”), two Michigan-based companies operating in New Hudson, pleaded guilty yesterday to devising a scheme that defrauded his employer of over $4 million, announced United States Attorney Matthew Schneider.

Schneider was joined in the announcement by Steven D’Antuono, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

Pleading guilty was David Hudson, 54, of Columbus, Ohio. 

According to the plea agreement, Hudson worked for CBL from approximately 2003 through 2014, until it was acquired by Cummins.  Post-acquisition, Hudson was employed by Cummins.  The owners of CBL established two entities to which CBL profits were paid for the purpose of sharing profits with CBL management and employees.  While working at CBL, Hudson’s job involved transferring funds to these profit sharing entities in the normal course of business.  As part of his job, Hudson had authority to write checks from the profit sharing entities.  As part of the scheme to defraud, Hudson would, under false pretenses, direct an employee under his supervision to transfer CBL funds—and later Cummins funds—into one or more of the profit sharing entities.  Hudson would then, without authorization, write checks from the profit sharing entities to himself. It was the goal of this scheme that Hudson would take advantage of his authority and position in order to enrich himself at the expense of his employers. Between the years of approximately 2008 and 2017, Hudson's scheme resulted in the fraudulent transfer of over $4.5 million dollars.

Under the terms of the plea agreement, Hudson is facing a sentence of 51-63 months.  Hudson will be sentenced on April 15 at 3 p.m. before United States District Judge Arthur Tarnow.

This case was investigated by special agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Timothy Wyse.

A psychologist with multiple clinic locations throughout Metro Detroit, will spend 51 months in prison for the commission of health care fraud and money laundering offenses, U.S. Attorney Matthew Schneider announced today.

Joining Schneider in the announcement was Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation 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.

Paul Lucki Smith, 54, was sentenced on January 7, 2020, by U.S District Court Judge Bernard A. Friedman after pleading guilty to health care fraud and unlawful monetary transactions. 

Smith, a psychologist who practiced for over 20 years at various locations throughout Metro Detroit, submitted claims to Blue Cross Blue Shield of Michigan for reimbursement for services that he did not provide. In three years, Smith fraudulently obtained $3,163,172.92 from Blue Cross Blue Shield. Smith subsequently used hundreds of thousands of dollars from the proceeds of his fraud to purchase real property, liquor licenses, and furniture, in his venture to become a hotelier in Arcadia, Michigan.

In addition to the term of imprisonment, the Court forfeited Smith’s interests in funds tied to the health care fraud and money laundering schemes, liquor licenses, and two pieces of real property. The Court also entered a forfeiture money judgment in the amount of $3,163,172.92

The case was investigated by agents of the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation.  It was prosecuted by Assistant United States Attorneys John Engstrom and Shankar Ramamurthy.

A Washington Township, Michigan man was sentenced on December 19, 2019 to serve 12 months in federal custody for conspiracy to commit wire fraud, United States Attorney Matthew Schneider announced today.

Schneider was joined in the announcement by Special Agent-in-Charge, Jeffrey Ryan, General Services Administration, Office of Inspector General.

Dennis Pomante, age 68, received the sentence from the Honorable Denise Page Hood, Chief United States District Judge. Judge Hood also ordered that the defendant pay a fine of $50,000, forfeit $30,000 to the United States, and serve two years on supervised release after his release from federal custody.    

According to the information provided to the Court at the time of his guilty plea and sentencing, Mr. Pomante, from July 2006 through July 2014, devised and executed a scheme to defraud various government departments and agencies by making false material misrepresentations to obtain numerous government contracts which were set-aside for small businesses owned by service disabled veterans or socially disadvantaged individuals. The scheme involved POMANTE and co-conspirators falsely claiming that U.S. Builders Group, Inc. [USBG], a Detroit- based business, was a small business owned and controlled by a service-disabled veteran as defined by federal regulations. Mr. Pomante and his co-conspirators knew that USBG was an affiliated business of another business and did not qualify as a “small business,” and that a service-disabled veteran did not control the business as required to receive the contracts they bid on. Through these misrepresentations, USBG was able to obtain over $100 million in federal contracts that would otherwise have gone mainly to genuine small, service- disabled, veteran-owned businesses. Mr. Pomante is now retired, and no longer has ownership in the involved businesses. USBG went out of business in 2014. 

"The GSA Office of Inspector General will aggressively pursue contractors who make false representations in order to obtain federal contracts” said Special Agent-in-Charge, Jeffrey Ryan. “Schemes to fraudulently access opportunities designated as set-aside contracts cheat the government and deserving bidders.”

The case was jointly investigated by agents of the Offices of Inspectors General for the Veterans’ Administration, the General Services Administration, the Small Business Administration, and the Department of Defense, and prosecuted by the White Collar Crimes Unit of the United States Attorney’s Office.

DETROIT - U.S. Attorney Matthew Schneider announced today that the Eastern District of Michigan collected $90,585,906 in criminal and civil actions in Fiscal Year 2019.  Of this amount, $86,186,604 was collected in criminal actions and $4,399,302 was collected in civil actions. 

Additionally, the Eastern District of Michigan worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $5,990,117 in cases pursued jointly by these offices.    Of this amount, $38,009.96 was collected in criminal actions and $5,952,107 was collected in civil actions.         

“The prosecutors and trial attorneys in our office worked tirelessly every day and these numbers prove it,” stated United States Attorney Matthew Schneider.  “Our office recovered over three times the amount of money spent in our annual budget of $29 million.  I’m happy to say these funds will be returned to victims and taxpayers.”

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

Additionally, the U.S. Attorney’s office in Eastern District of Michigan, working with partner agencies and divisions, collected $14,168,249 in asset forfeiture actions in FY 2019.  Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

A 61-year-old resident of Coleman, Michigan, Ronald Arthur Polk, was sentenced today to 20 years in prison for possessing and accessing with intent to view child pornography involving prepubescent minors or minors under the age of 12, United States Attorney Matthew Schneider announced today.

Schneider was joined in the announcement by Steven M. D'Antuono, Special Agent in Charge of the FBI’s Detroit Field Office. 

United States District Judge Thomas L. Ludington also imposed five years of supervised release on Ronald Arthur Polk who was found guilty by a federal jury on September 16, 2019.

At the trial before U.S. District Judge Thomas L. Ludington, the evidence established that between August 6, 2013, and August 23, 2018, Polk used his computers to browse the Internet to search and web link to numerous websites containing child pornography. The forensic evidence revealed Polk possessed approximately 3,000 images containing child pornography, a majority of them involving minors under the age of 12 or prepubescent.

The case was investigated by the Midland Sherriff’s Department, the Michigan State Police, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Anca Pop.

A thirty-three count Indictment unsealed today charges City of Taylor Mayor Richard “Rick” Sollars, businessman Shady Awad, and Taylor Community Development Manager Jeffrey Baum with conspiracy to commit bribery in a scheme spanning from 2015 to 2019, United States Attorney Matthew Schneider announced.  The Indictment also charges Sollars and Awad with seven counts of bribery each, and charges Sollars and Baum with 18 counts of Wire Fraud.

According to the Indictment, Sollars helped Awad’s real estate development company Realty Transition LLC obtain scores of tax-foreclosed properties owned by the City of Taylor.  In return, Awad lavished Sollars with thousands of dollars in cash and over $30,000 in renovations to Sollars’s home, over $11,000 in renovations to Sollars’s lake house, and over $12,000 in new household appliances.  The appliances included a refrigerator, stove, microwave, dishwasher, a $1,600 cigar humidor, a vacuum cleaner, and a clothes washer and dryer.  The free renovations provided to Sollars by Awad include hardwood floors on every level of Sollars’s Taylor residence, hardwood floors at the lake house, a garage door, a new front door, cabinets, and a refurbished lake house deck.  The Indictment also alleges that Jeffrey Baum received bribes from Awad and another developer, in exchange for Baum’s help in obtaining tax-foreclosed properties from the City. 

Text messages between Sollars, Awad, and Baum cited throughout the Indictment document the bribe scheme.  In one text, Awad states as follows: “My relationship with Rick is worth $1 million so whatever it takes I’ll pay for it” in telling a contractor to do free work on Sollars’s lake house.  In another text, the Indictment states that Awad told Sollars that Sollars was Awad’s “silent partner” in Awad’s real estate development business.  Sollars, 45, is a resident of Taylor.  Awad, 39, and Baum, 44, are both residents of Allen Park, Michigan.   

The Indictment also charges Sollars and Baum with 18 counts of Wire Fraud, alleging that Sollars and Baum defrauded donors to Sollars’s campaign fund in three ways.  First, Sollars would take checks from his campaign account and write them payable to a particular market, purporting to pay for catering for one of Sollars’s events.  Instead, the market owner would cash the campaign checks and give the cash back to Sollars, with no catering provided.  Second, Sollars and Baum would direct Sollars’s supporters to write checks directly to the market for events that never occurred.  Sollars would get cash and scratch-off lottery tickets from the market owner.  Third, Sollars and Baum would solicit and accept thousands of dollars in cash contributions to Sollars’s campaign.  Instead of depositing the funds into his campaign account, Sollars would simply keep the cash and use it for personal expenses. 

The Indictment also seeks forfeiture of $205,993 in cash seized from Sollars’s home on February 10, 2019.  

Schneider was joined in the announcement by Steven D’Antuono, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

“The unearthing of allegedly blatant corruption at the top levels of government in the City of Taylor should disturb every citizen of our state,” said United States Attorney Matthew Schneider.  “Federal law enforcement will continue to aggressively investigate and prosecute any public officials who choose their personal greed over their public oath.”

"Any time an allegation of corruption is brought to our attention, the FBI's Detroit Area Public Corruption Task Force will investigate it thoroughly. Public corruption at any level undermines the community's faith in their elected officials and does long-term damage to government institutions," said SAC D'Antuono. "With that in mind, we encourage anyone who believes they have information about corruption to contact the FBI at 313-965-4545 or tips.fbi.gov."

The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service.  The case is being prosecuted by Assistant U.S. Attorneys Dawn Ison and R. Michael Bullotta.

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

         

A former certified registered nurse anesthetist was arraigned today on an Indictment charging her with fraudulently obtaining controlled substances, including several opioids, U.S. Attorney Matthew Schneider announced today.

Schneider was joined in the announcement by Special Agent in Charge Gregg Hirstein of the Department of Veterans Affairs Office of Inspector General and Special Agent in Charge Keith W. Martin of the Drug Enforcement Administration, Detroit Field Division.

Charged in the indictment is Elizabeth A. Prophitt, CRNA, 38, of Saline, who previously worked at the VA Hospital in Ann Arbor.

As alleged in the Indictment, Prophitt utilized her position as a surgical nurse aesthesis to retrieved vials of controlled substance medications from hospital dispensing machines for purported use on patients.  The purpose of obtaining these controlled substances was not for the legitimate treatment of patients, but rather for her own personal consumption and/or drug diversion. 

It is alleged that Prophitt would retrieve medications on days when she was unscheduled to work or after normal working hours; retrieve medications for patients that were not on her surgery service; retrieve medications for surgeries that had been cancelled or had already been completed; retrieve more medication than required for a patient’s surgery and keep the unused portions; and falsify “waste” records to keep any unused medication instead of properly returning or disposing of the controlled substances.  Prophitt exploited her knowledge of her employer’s internal controls to obtain these controlled substances, which would go unnoticed. From July 2018 to February 2019, she accessed more than 2200 vials of controlled substances such as fentanyl, hydromorphone, morphine and midazolam, which were believed to be obtained by fraud, misrepresentation and deceit.

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.

If convicted of a drug charges alleged in the Indictment, the defendant faces a maximum sentence of imprisonment of four years for each count of the Indictment, and a maximum fine of $250,000.

The case is being investigated by the VA Office of Inspector General and the DEA; and is being prosecuted by Assistant United States Attorneys Brandy R. McMillion.  McMillion serves as the District’s Opioid Fraud Abuse and Detection Prosecutor as well as the Deputy-Chief of the Health Care Fraud Unit.  The Opioid Fraud Abuse and Detection Unit is a Department of Justice initiative designating twelve special prosecutors across the country to focus on prosecuting medical professionals that are contributing to the nation’s opioid crisis. 

The Justice Department today filed a lawsuit seeking to revoke the naturalized United States citizenship of Abdul Jabbar Naji Shalabi, who allegedly concealed from U.S. immigration authorities his provision of material support to the terrorist organization Hamas by twice concealing bomb-making materials on behalf of a known Hamas bomb maker. According to the Department’s civil complaint, Shalabi, a native of Jordan, was convicted in Israel of providing such support to the terrorist organization. The complaint alleges that, throughout his naturalization proceedings, Shalabi concealed both his provision of support to Hamas and his Israeli conviction. The complaint was filed in federal court in the Eastern District of Michigan.

“We will use all available tools to enhance national security and counter the threat of terrorism,” said Assistant Attorney General Jody Hunt. “The Department of Justice is deeply committed to investigating and prosecuting individuals who defraud the American people and government by concealing their material support for terrorists.”

“This Administration is dedicated to keeping the American people safe and protecting the integrity of our legal immigration system,” said Ken Cuccinelli, Senior Official Performing the Duties of the Deputy Secretary for the Department of Homeland Security.  “Through his behavior, this individual has proven unqualified for citizenship in the United States and must be held accountable for fraudulently obtaining that incredible privilege.”

According to the complaint, Shalabi, 39, a resident of Ypsilanti, Michigan, immigrated to the United States in 1997 but later left the United States to study at Bir Zeit University in the West Bank. The complaint alleges that in late 2002 Shalabi was arrested by Israeli authorities on suspicion of having concealed acetone, a bomb-making component, on behalf of Hamas bomb maker Ahmad Abu-Taha. Shalabi pleaded guilty in an Israeli court in March 2003 to Providing Service to an Unlawful Association (Hamas) and was incarcerated. The complaint alleges that following his release and return to the United States, Shalabi naturalized as a U.S. citizen in 2005, but lied about and concealed his provision of support to Hamas, arrest, conviction, and imprisonment.

“Any person who obtains American citizenship through lies is not entitled to the benefit of citizenship in our country, and this is especially true for people who support violent terrorist organizations such as Hamas,” said U.S. Attorney Schneider for the Eastern District of Michigan.

The case was investigated by the Federal Bureau of Investigation’s Detroit Field Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The Criminal Division’s Office of International Affairs provided assistance. The case is being prosecuted by Senior Counsel for National Security Aaron Petty of OIL-DCS’s National Security and Affirmative Litigation Unit and Assistant U.S. Attorney Peter Caplan of the U.S. Attorney’s Office for the Eastern District of Michigan, with support from U.S. Immigration and Customs Enforcement, Office of the Principal Legal Advisor.

The claims made in the complaint are allegations only, and there have been no determinations of liability.

A Detroit man was indicted yesterday on charges of production, possession and receipt of child pornography, First Assistant United States Attorney Saima Mohsin announced today. 

Mohsin was joined in the announcement by Special Agent in Charge Steven M. D'Antuono of the Federal Bureau of Investigation, Detroit Division (FBI).

Indicted was Wade Preston Streeter, 49.  Streeter was arrested on November 21, 2019 on a criminal complaint and is being held in custody during the pendency of this case.

According to court records, Streeter is alleged to have sexually assaulted and covertly produced sexually graphic photographs of minor boys as well as engaged in sexually explicit conversations with the minor victims.  This alleged conduct took place both at his home in Detroit and on his tugboat. 

The FBI is asking for the public’s help to identify potential victims of Streeter, who would befriend young boys on Facebook and other social media sites and then arrange to meet them privately.

Anyone who may have been victimized by Wade Preston Streeter, or anyone who may have information about his alleged criminal behavior, is encouraged to call 313-426-3880 or email the FBI at DetroitShipTips@fbi.gov.

The FBI is legally mandated to identify victims of federal crimes that it investigates. Identified victims may be eligible for certain services and rights under federal and/or state law. Victims in this investigation can find information about the hearings in this case at https://www.justice.gov/usao-edmi/united-states-v-wade-streeter-docket-19-mj-30602.

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 is being investigated by special agents of the FBI and is being prosecuted by Assistant United States Attorneys April Russo and Barbara Lanning.

A leader of the Latin Counts gang was sentenced yesterday to 20 years in federal prison for assault with a dangerous weapon in aid of racketeering, announced United States Attorney Matthew Schneider.

Schneider was joined in the announcement by Special Agent in Charge James Deir of the ATF’s Detroit Division, and Chief James Craig of the Detroit Police Department.

Christopher Nicholas Rishell, a/k/a “C-5,” 30, of Lincoln Park, was sentenced by U.S. District Judge Robert H. Cleland.

According to court records, Rishell  orchestrated and helped carry out with fellow Latin Counts gang members a drive-by shooting in a residential neighborhood of southwest Detroit that occurred on October 7, 2017, killing one victim and injuring two others.  Rishell was the “president” of the Toledo Mafia Counts set of the Latin Counts at the time of the shooting.

Also according to court records, the Latin Counts gang operates primarily in southwest Detroit and the downriver communities of Lincoln Park and Ecorse.  The Latin Counts are a criminal enterprise responsible for murders, robberies, and the distribution of illegal drugs.  The Latin Counts use violence to retaliate against rivals, intimidate citizens in the community, and advance members’ positions within the gang. 

Through the lead efforts of the ATF, FBI, and the Detroit Homicide Task Force, law enforcement identified and charged a total of seven violent members of the Latin Counts gang responsible for the drive-by shooting, all of whom have since pleaded guilty.

The case was prosecuted by Assistant United States Attorneys Louis Crisostomo, Robert VanWert, and Eric Straus. 

Joseph Ashton, former Vice President of the UAW’s General Motors Department, pleaded guilty today to conspiring with other UAW officials to engage in honest services fraud by taking $250,000 in bribes and kickbacks from a UAW vendor and to conspiring to launder the proceeds of the scheme 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, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Manny Muriel, 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.

Joseph Ashton, 71, of Ocean View, NJ, pleaded guilty to conspiring to engage in honest services wire fraud and to conspiring to launder money between 2012 and 2016.  During the plea hearing, Ashton admitted that he conspired with Michael Grimes and Jeffery Pietrzyk, two former high-level UAW officials in the UAW’s GM Department who previously pled guilty to the same crimes, to take hundreds of thousands of dollars in bribes and kickbacks from vendors doing business with the joint UAW-GM Center for Human Resources.  The Center for Human Resources is supposed to be a center for training UAW workers employed by GM.  Ashton was the co-director of the Center for Human Resources. Ashton, Pietrzyk and Grimes also served on the Executive Board for the Center for Human Resources and they were responsible for approving contracts with the vendors. Ashton admitted that over the course of the conspiracy, he and the other two UAW officials demanded and accepted bribes and kickbacks from a vendor based in Philadelphia, PA, in exchange for securing or maintaining a contract to provide custom watches to the Center for Human Resources.

Ashton and his UAW co-conspirators demanded kickbacks on the $3.9 million contract for the Center for Human Resources to buy 58,000 watches for all UAW members employed by GM. The UAW officials demanded over $250,000 in kickbacks on the watch contract to be distributed between 2013 through 2016.  Some of the kickbacks were distributed in the form of checks payable to Ashton which were deposited into his personal bank account. The majority of the kickbacks were distributed as cash.  In 2014, the UAW-GM Center for Human Resources received the 58,000 watches from the vendor.  However, the watches were never distributed to UAW members.  Instead, the watches have been sitting in storage in a warehouse for over five years.                    

Besides conspiring with other UAW officials and vendors to the UAW, Ashton also admitted that he conspired to launder the proceeds of the kickback scheme by using various methods to conceal and disguise the bribes and kickbacks through a lengthy and complicated series of financial transactions.  

Ashton is the eleventh defendant to plead guilty in connection with the ongoing criminal investigation into illegal payoffs to UAW officials by FCA executives and corruption within the UAW itself. The following 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), and former UAW Vice President Norwood Jewell (15 months in prison). Jeffery Pietrzyk and Michael Grimes have pleaded guilty and are awaiting sentencing.  

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 hard-working members of the UAW deserve to be represented by union officials dedicated to providing honest representation free of corruption and greed, and today’s guilty plea is another step in the right direction,” stated US Attorney Schneider.

“Joseph Ashton abused the power of his position in the UAW to brazenly demand kickbacks from a vendor. His actions deprived union members of the honest services they expect and deserve from those who are elected to make decisions in the union's best interest,” said SAC D’Antuono. “The FBI is committed to fighting such corruption, which does real and lasting damage to the trust union members should have in their elected leadership."

 “Joseph Ashton was elected to represent and bargain in the best interests of the UAW members, but instead he used his position to enrich himself and others within the UAW” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “Protecting members against corruption perpetrated by their union leaders is critical to the mission of OLMS.”

“Joseph Ashton engaged in a fraudulent scheme to deprive the International United Auto Workers Union of his honest services by demanding and accepting over $250,000 in kickbacks from a vendor. Instead of bargaining in the best interests of the UAW members, he chose to personally enrich himself. 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.

The case is being prosecuted by Assistant U.S. Attorneys Frances Carlson and Eaton Brown.

A Detroit man was sentenced yesterday to twenty-four months in prison for stealing more than eight hundred thousand dollars from the federal government U.S. Attorney Matthew Schneider announced.

Schneider was joined in the announcement by Thomas W. South, Deputy Assistant Inspector General for Investigations, Office of Personnel Management’s Office of the Inspector General; and Special Agent in Charge Gregg Hirstein, Department Veterans Affairs Office of the Inspector General.

Kendrick Allen Gills, 64, was sentenced by U.S. District Judge Arthur J. Tarnow in Detroit, Michigan.  After the conclusion of his prison term, Gills must also spend three years on supervised release.  The Court further ordered Gills to pay full restitution to the government.

Gill’s relative Jack Farmer passed away sometime in 2004.  At that time, Farmer was receiving a federal pension from the Office of Personnel Management (OPM) and because OPM was unaware of his death, OPM continued to issue monthly Treasury checks in Farmer’s name.  The erroneous payments continued for approximately 14 years—$566,547.00 in total.  Gills unlawfully converted these payments to his own use, primarily making electronic withdrawals from their joint bank account, but also forging Farmer’s signature on at least one check.  Significantly, Gills concealed Farmer’s death by submitting multiple forms to the Office of Personnel Management on Farmer’s behalf, making it look as though Farmer was still alive and living with Gills. 

During the same period, Gills also unlawfully retained $245,969.24 in payments made to another deceased relative by the Department of Veterans Affairs.

This case was investigated by special agents from OPM-OIG, with the assistance of special agents from VA-OIG, and was prosecuted by Assistant U.S. Attorney Ryan A. Particka.

Dr. April Tyler, a Fenton, Michigan area doctor, pleaded guilty to violating the anti-kickback statute on November 6, 2019.  Dr. Tyler’s conspirators, Patrick Wittbrodt, 44, of Grand Blanc, Michigan and Jeffrey Fillmore, 31, of Clio, Michigan pleaded guilty to healthcare fraud on March 6, 2019 and November 19, 2019 respectively. 

The defendants’ complex fraud and kickback scheme involved UAW members and medically unnecessary compounded pain creams, scar creams, pain patches and/or vitamins.  According to court documents, the defendants caused an approximate $8,000,000 loss to Medicare and Blue Cross Blue Shield of Michigan (“BCBS”). Some of this money was stolen from UAW members’ prescription insurance accounts.

Court documents laid out the defendants’ scheme:

Due to the high reimbursement rate paid by Medicare and BCBS for prescription pain cream, scar cream, pain patches and/or vitamins defendants targeted these insurance plans.  Defendant Fillmore had acquaintances and personal contacts at the UAW through his job and various family members.  Defendants Fillmore, Wittbrodt and Tyler would then schedule time at various UAW meetings where defendants would tout pain cream, scar cream, pain patches and vitamins to the UAW members.  An aspect of defendants’ presentation was that the UAW members could receive their prescriptions free -- without paying a prescription drug copay at the pharmacy.  UAW members did not realize that acceptance of the “free” medications would cost their health care fund millions of dollars.     

Defendants would then collect the UAW members’ insurance information along with their family members’ insurance information.  Defendant Dr. Tyler would then authorize the pain cream, scar cream, pain patch and/or vitamin prescriptions for the UAW members and/or their family members.  Defendant Dr. Tyler did not establish a valid doctor-patient relationship with any of the UAW members, did not perform a physical exam and did not determine medical necessity for the prescriptions she wrote for the UAW members.  The prescriptions were not, therefore, legally eligible for reimbursement from the various insurance companies.  Defendant Dr. Tyler also pre-signed prescription forms and allowed defendants Wittbrodt and Fillmore to choose which compounded creams, patches and vitamins to write on the prescriptions. 

Defendant Wittbrodt directed the prescriptions to various pharmacies.  The pharmacies would fill the prescriptions, bill the UAW members’ insurance and pay a monetary kickback to Wittbrodt.  Defendant Wittbrodt would then provide remuneration to defendants Dr. Tyler and Fillmore from the kickback he received.  The prescriptions were periodically re-filled and/or re-billed, regardless of whether the UAW member requested a refill or not.  The prescription co-pay was waived at the pharmacy for the UAW members.

Also according to court records, each defendant has agreed to the following federal sentencing guidelines:

• Patrick Wittbrodt: 70-87 months in prison
• Dr. April Tyler:  18-24 months in prison
• Jeffrey Fillmore: 37-46 months in prison

 

““These unlawful prescriptions cost the UAW health care fund millions of dollars, and the end result was a rip-off of the hard working men and women of the union,” said United States Attorney Matthew Schneider.  “We will continue to aggressively prosecute health care fraud, and step in to protect UAW workers across Michigan.” 

“We rely on medical professionals to uphold the integrity of the prescription drug programs by only prescribing medications that are medically indicated and necessary.  Circumventing this process solely for personal, financial gain compromises the integrity of these systems and takes away valuable healthcare dollars from patients who truly need the medications.  HHS-OIG will continue to work with our law enforcement partners to protect and deter fraud within federal health care programs,” said Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General.

“Medical professionals and others should know that we will investigate and bring to justice those involved in illegal distribution of unneeded drugs,” said Special Agent in Charge William P. Conway, FDA Office of Criminal Investigations Chicago Field Office. 

“This case demonstrates that collaboration between law enforcement and private insurance investigators is essential in prosecuting those responsible for federal healthcare fraud and kickback violations,” said by Dan Crowell, Blue Cross Blue Shield of Michigan, Director of Corporate and Financial Investigations.     

This case was investigated by the United States Department of Health and Human Services – Office of Inspector General, the United States Food and Drug Administration and Blue Cross Blue Shield of Michigan, under the supervision of the U.S. Attorney’s Office for the Eastern District of Michigan.  Assistant U.S. Attorney Michael Heesters and Wayne Pratt are prosecuting the case.

The United States Attorney’s Office for the Eastern District of Michigan has resolved its Americans with Disabilities Act (ADA) compliance review of the University of Michigan’s Mcity Driverless Shuttle Program, First Assistant United States Attorney Saima Mohsin announced today. The United States Attorney’s Office initiated the compliance review of the Program, which was touted as the first of its kind to focus on consumer research, based upon media reports that the Program featured vehicles without accessible features.

“The ADA was enacted to provide a clear and comprehensive national mandate, assuring equality of opportunity, full participation, and independent living to individuals who have disabilities,” said Mohsin. “Driverless vehicles and transportation systems have enormous potential to assure self-sufficiency for individuals who have disabilities. It is critical that individuals who have disabilities remain a priority for developers of this technology. I commend the University of Michigan for making this commitment to individuals who have disabilities.”

The Mcity Driverless Shuttles operate on a fixed route at the University of Michigan’s North Campus Research Complex. The ADA requires that vehicles purchased or leased for a fixed route system by public entities, such as the University of Michigan, must be readily accessible to and usable by individuals with disabilities, including individuals who use wheelchairs.  A public entity’s failure to purchase or lease a new vehicle for a fixed route system with accessible features is a form of discrimination under the ADA. Through a Letter of Resolution, the University has agreed that any future vehicles purchased or leased for the Mcity Driverless Shuttle program will be equipped with accessible features. Additionally, the University has agreed to convene a research group to evaluate the accessibility of autonomous transportation services to individuals who have disabilities.

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 the Letter of Resolution with the University of Michigan, 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. 

A long time member and leader of the Seven Mile Bloods Street Gang was sentenced for his participation in various criminal acts, including racketeering conspiracy, attempted murder and a related firearm offense, announced United States Attorney Matthew Schneider.                 

Schneider was joined in the announcement by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Steven M. D'Antuono, Special Agent in Charge of the Detroit Field Office and Chief James Craig, Detroit Police Department.

“Four decades in federal prison without parole is the consequence for gang members who inflict violence, drug dealing, and mayhem on our communities,” said United States Attorney Matthew Schneider.  “Michigan has no tolerance for the senseless murders and violence spread by gang members, and that is why we will continue to fight these gangs in court.”

Robert Brown, aka “RO” 37, of Warren, was sentenced to 40 years imprisonment after having been convicted of RICO conspiracy; attempted murder in aid of racketeering; and possession of a firearm in furtherance of a crime of violence. Brown was sentenced to 30 years on the RICO conspiracy and a 10 year concurrent sentence  on the attempted murder. Brown was also sentenced to 10 years on the firearm count, which will be served consecutively to the other two counts. 

The 10-week trial was conducted last year before U.S. District Judge George Caram Steeh in Detroit, Michigan.  The jury deliberated approximately seven days before reaching their verdicts.  Amongst those convicted were:

• Corey Bailey, aka “Sonny,” “Cocaine Sonny,” 31, of Detroit, was sentenced to two life sentences and three 10 year sentences, all to run concurrent, after having been convicted of RICO conspiracy; murder in aid of racketeering; attempted murder in aid of racketeering; and possession of a firearm in furtherance of a crime of violence;
• Arlandis Shy, aka “Grymee,” “Vil,” 30, of Clinton Township was sentenced to 18 years after having been convicted of RICO conspiracy;
• Keithon Porter, aka “KP,” 32, of Detroit; is awaiting sentencing after having been  convicted of RICO conspiracy; murder in aid of racketeering; attempted murder in aid of racketeering; and possession of a firearm in furtherance of a crime of violence.

 

A fifth defendant, Eugene Fisher, aka “Fes,” 38, of Detroit, was sentenced to 90 months after having been convicted of two counts of felon in possession of a firearm.

According to evidence presented during the trial,  the Seven Mile Bloods gang operates on the east side of Detroit, between Gratiot Avenue and Kelly Road and between Seven and Eight Mile Roads.  Seven Mile Bloods or “SMB” members have claimed this area as their territory and refer to it as the “Red Zone.”  The area is in zip code 48205, which SMB members refer to as “4-8-2-0-Die” in some of their rap lyrics.

Evidence presented at trial showed an ongoing gang war between the Seven Mile Bloods and an alliance of other gangs operating on Detroit’s east side stemming from a murder that occurred in July 2014.  These rival gangs have been violently attacking one another and have posted respective “hit lists” on social media.  This shooting war led to increased homicides and non-fatal shootings on Detroit’s east side.

This case was the work of the Detroit One Initiative.  Investigators were able to bring together separate probes into various members of this organization and its criminal activities into one encompassing investigation. Partners include the Detroit Police Department Gang Intelligence Unit, the FBI Violent Gang Task Force, which consists of representatives of Detroit Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, Michigan Department of Corrections and Michigan State Police, with the cooperation of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Drug Enforcement Administration (DEA).

The investigation further resulted in the seizure of more than 20 firearms, including several high-powered assault rifles.

The case was prosecuted by Trial Attorney Julie A. Finocchiaro of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Justin Wechsler, Mark Bilkovic and Tare Wigod of the U.S. Attorney’s Office for the Eastern District of Michigan.

A Latin Counts gang member was sentenced yesterday to 30 years in federal prison for conspiracy to commit murder in aid of racketeering and assault with a dangerous weapon in aid of racketeering, announced United States Attorney Matthew Schneider, Special Agent in Charge James Deir of the ATF’s Detroit Division, and Chief James Craig of the Detroit Police Department.

Ryan Jose Taylor, a/k/a “Loco,” 24, of Detroit, was sentenced by U.S. District Judge Robert H. Cleland for planning and carrying out with fellow Latin Counts gang members a drive-by shooting in a residential neighborhood of southwest Detroit that occurred on October 7, 2017, killing one victim and injuring two others.  According to court records, Taylor fired the gunshot that killed the deceased victim. 

Also according to court records, the Latin Counts gang operates primarily in southwest Detroit and the downriver communities of Lincoln Park and Ecorse.  The Latin Counts are a criminal enterprise responsible for murders, robberies, and the distribution of illegal drugs.  The Latin Counts use violence to retaliate against rivals, intimidate citizens in the community, and advance members’ positions within the gang. 

Under the Detroit One initiative, and through the lead efforts of the ATF, FBI, and the Detroit Homicide Task Force, law enforcement identified and charged a total of seven violent members of the Latin Counts gang responsible for the drive-by shooting, all of whom have since pleaded guilty.

Detroit One is a collaborative effort between law enforcement and the community to reduce homicides and other violent crimes in Detroit.  By working together, local, state, and federal law enforcement agencies strive to maximize their ability to identify and arrest individuals and groups initiating violence in Detroit. 

The case was prosecuted by Assistant United States Attorneys Louis Crisostomo, Robert VanWert, and Eric Straus. 

A Detroit area pharmacist was convicted yesterday in federal court in Detroit on charges of conspiracy to unlawfully distribute controlled substances and individual counts of unlawful distribution of opioids, U.S. Attorney Matthew Schneider announced today. 

Schneider was joined in the announcement by Special Agent in Charge Keith Martin, U.S. Drug Enforcement Administration, Detroit Field Division; Special Agent in Charge Manny Muriel, Internal Revenue Service, Criminal Investigations; and Special Agent in Charge Steven D’Antuono, Federal Bureau of Investigation, Detroit Division.

Abidoun Fabode, R.Ph., 57, of Chesterfield, was convicted after a two-week trial on five counts charged in the indictment, including one count of conspiracy to unlawfully distribute controlled substances and four substantive counts of unlawful distribution.

The evidence presented during trial demonstrated that from January 2015 through March 2018, Fabode, who co-owned and operated Friendz Pharmacy in Detroit, dispensed more than 245,080 unit dosages of controlled substances which were issued outside the course of legitimate medical practice and for no legitimate medical purpose.  The opioid prescriptions were presented to the defendant by patient recruiters who obtained the pills either from doctors willing to write unnecessary controlled substance prescriptions or people engaged in creating fake prescriptions.   Fabode, fully knowing the illegitimacy of these prescriptions, dispensed the extremely dangerous and addictive opioids, including Oxycodone and Oxymorphone, in exchange for cash payments totaling in excess of $1,895,000.  The pills were then later resold on the street market by the pill dealers, and carry a conservative estimated wholesale street value of $7 million.

Five other co-defendants, including pharmacists Enitan Sodiya-Ogundipe of Global Health Pharmacy in Pontiac; pharmacist Amir Rafi of Precare Pharmacy in Redford; Dr. Vasan Deshikachar; and pill dealers Niesheia and Andrei Tibu; all pled guilty to the conspiracy late last year.  They are each set to be sentenced for their roles in this opioid drug diversion scheme in the coming months.

This case was prosecuted by Assistant United States Attorneys Brandy R. McMillion and A. Brant Cook.  McMillion serves as the District’s Opioid Fraud Abuse and Detection Prosecutor as well as the Deputy-Chief of the Health Care Fraud Unit.  The Opioid Fraud Abuse and Detection Unit is a Department of Justice initiative designating twelve special prosecutors across the country to focus on prosecuting medical professionals that are contributing to the nation’s opioid crisis.  The case was investigated by special agents and task force officers of the DEA, the Oakland Country Sheriff’s Department, the Internal Revenue Service, and the Federal Bureau of Investigation. 

 

DETROIT – The U.S. Attorney’s Office for the Eastern District of Michigan has reached an agreement with William Beaumont Hospital, a component of Beaumont Health -- the largest health care system in Michigan, to resolve allegations that it violated the Americans with Disabilities Act when it failed to provide effective communication for individuals who are deaf or hard of hearing, U.S. Attorney Matthew Schneider announced today.

The agreement resolves complaints filed with the U.S. Attorney’s Office that alleged that William Beaumont Hospital failed to provide sign language interpreters to deaf patients despite their repeated requests to obtain an interpreter for complex medical appointments and procedures.  Because of the hospital’s failure to provide sign language interpreter services, deaf individuals were denied the benefit of effective communication with hospital staff, the opportunity to effectively participate in medical treatment decisions, and the full benefit of health care services provided by the hospital.

The investigation, which was conducted by the U.S. Attorney’s Office Civil Rights Unit, revealed that Beaumont’s systems were not adequate to ensure that deaf and hard of hearing patients are provided with auxiliary aids and services to guarantee effective communication throughout their medical treatment.  Beaumont worked cooperatively with the U.S. Attorney’s Office throughout the investigation.

“The ADA protects the right of individuals who are deaf or hard of hearing to be able to access medical services, and this agreement is the latest example of our office’s unwavering commitment to enforcing the ADA,” said Matthew Schneider, United States Attorney for the Eastern District of Michigan.  “This settlement enables Beaumont and the federal government to achieve their common goal to ensure that deaf and hard of hearing patients can communicate with their doctors and obtain equal access to medical treatment, especially at critical moments in their care.”

The settlement agreement requires Beaumont, for each of its three hospitals and 31 affiliated health care facilities, to provide training to hospital staff on the requirements of the ADA; to adopt specific policies and procedures to ensure that auxiliary aids and services, including sign language interpreters, are promptly provided to patients or companions who are deaf or hard of hearing; and to designate specific Beaumont ADA personnel to ensure access to appropriate auxiliary aids and services.

The ADA prohibits discrimination against individuals with disabilities by hospitals.  Among other things, the ADA requires doctors, hospitals and other health care providers to provide equal access to patients and companions who are deaf or hard of hearing.  When medical services involve important, lengthy or complex oral communications with patients or companions, hospitals are generally required to provide qualified sign language interpreters and other auxiliary aids, free of charge, to individuals who are deaf, are hard of hearing or have speech disabilities.  The appropriate auxiliary aid to be provided depends on a variety of factors, including the nature, length and importance of the communication; the context of the communication; the communication skills and knowledge of the individual who is deaf or hard of hearing; and the individual’s stated need for a particular type of auxiliary aid.

Enforcing the ADA is a top priority of the Civil Rights Unit of the U.S. Attorney’s Office for the Eastern District of Michigan. Those interested in finding out more about this settlement or the obligations of hospitals and other health providers under the ADA may call the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383(TDD), or access the ADA website at www.ada.gov.  ADA complaints within the Eastern District of Michigan can be made to the U.S. Attorney’s Office Civil Rights Hotline at (313) 226-9151 or usamie.civilrights@usdoj.gov.

The owner of a Detroit, Michigan-area physical therapy clinic pleaded guilty today for his role in a drug diversion scheme.   

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Keith Martin of the U.S. Drug Enforcement Administration (DEA)’s 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 made the announcement.

Malik Fuqua, 49, of Southfield, Michigan, pleaded guilty to one count of conspiracy to distribute controlled substances before U.S. District Judge David Lawson of the Eastern District of Michigan.  Sentencing has been scheduled for Feb. 26, 2020, before Judge Lawson.   

Fuqua was the owner and operator of 1st Priority Physical Therapy of [Southfield], Michigan, and also assisted in the day-to-day operations of Abyssinia Love Knot Physical Therapy LLC of Southfield, Michigan, which was purportedly a pain management and physical therapy clinic.  As part of his guilty plea, Fuqua admitted that he conspired with others to unlawfully distribute controlled substances and that he oversaw physicians who would write medically unnecessary prescriptions for controlled substances, such as oxycodone and oxymorphone.  Fuqua admittedly facilitated patient visits with doctors, and accepted payment from patients and patient recruiters/marketers in exchange for physician visits at which he knew that prescriptions for medically unnecessary controlled substances would be provided.  Medicare beneficiaries were required to sign physical therapy documents as a condition to receive prescriptions for controlled substances, regardless of medical necessity, Fuqua admitted. 

The total drug amount attributable to Fuqua is in excess of 500,000 oxycodone pills, he admitted.

The DEA and HHS-OIG investigated the case.  Trial Attorney Patrick Suter and Assistant Chief Malisa Dubal of the Criminal Division’s Fraud Section are prosecuting the case.  The case was previously prosecuted by Assistant Chief Drew Bradylyons and Trial Attorney Thomas Tynan of the Fraud Section.

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.

Today, Attorney General William P. Barr announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.

Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.

“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”

“Reducing gun violence and getting guns off the streets in our communities has always been a priority,” stated US Attorney Matthew Schneider.  “The launch of Project Guardian will help bolster the success we’ve already seen with Project Safe Neighborhoods by focusing on the individuals and groups who represent the greatest threat of violence to our communities.”

“ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.” 

Project Guardian’s implementation is based on five principles:

1. Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.

 

1. Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.

 

Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.

 

1. Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.

 

1. Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety. 

 

Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.

 

1. Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.

 

Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.   

For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.

Under a proposed settlement announced today by the United States, the State of Michigan and the Saginaw Chippewa Indian Tribe of Michigan, The Dow Chemical Company will implement and fund an estimated $77 million in natural resource restoration projects intended to compensate the public for injuries to natural resources caused by the release of hazardous substances from Dow’s Midland, Michigan facility.  The proposed settlement, which was lodged today in the U.S. District Court for the Eastern District of Michigan, is subject to public comment and to approval by the court. 

According to a complaint filed on behalf of federal, state and tribal natural resource trustees, Dow released dioxin-related compounds and other hazardous substances from its Midland, Michigan, facility, and such releases caused injuries to natural resources.  The complaint alleges that hazardous substances from Dow’s facility adversely affected fish, invertebrates, birds and mammals, contributed to the adoption of health advisories to limit consumption of certain wild game and fish, and resulted in soil contact advisories in certain areas including some public parks.   

The settlement identifies a number of specific natural resource restoration projects that will be implemented in different parts of Midland, Saginaw and Bay counties, consistent with provisions of a natural resource restoration plan developed by designated natural resource trustees, including the Department of the Interior’s U.S. Fish and Wildlife Service and Bureau of Indian Affairs; the State of Michigan’s Department of Natural Resources (DNR), Department of Environment, Great Lakes, and Energy (EGLE), and Department of Attorney General; and the Saginaw Chippewa Indian Tribe of Michigan. 

Dow will implement eight natural resource restoration projects described in the settlement at the company’s expense, subject to oversight and approval by the natural resource trustees.   In addition, Dow will pay $6.75 million, plus interest, to a Restoration Account that will used by Trustees to fund five other restoration projects described in the settlement. 

The settlement also requires Dow to pay another $15 million, plus interest that will be used by the Trustees for various purposes.  At least $5 million of this funding will be used to support implementation of additional natural resource restoration projects that will be selected by the trustees in the future, after a separate opportunity for public input on restoration project proposals.  This funding will also be used to cover costs of long-term monitoring and maintenance of restoration projects under the settlement, as well as costs that the Trustees will incur in overseeing restoration projects. 

Finally, Dow is required to reimburse costs previously incurred by federal and state trustees in connection with the assessment of natural resource damages relating to Dow’s releases. 

“Today’s settlement is good news for communities in this region, and it builds upon ongoing cleanup efforts under the direction and supervision of the EPA and the Michigan Department of Environment, Great Lakes and Energy,” said Principal Deputy Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division.  “The extensive habitat restoration provisions of this settlement will help accelerate recovery of natural resources over a large area where resources have been adversely impacted as a result of decades of exposure to Dow’s hazardous substances.” 

 “With this settlement, the natural resources in the Saginaw Bay area will be restored through the creation of natural habitat areas, nature preserves, hiking and biking trails, and greater access for fishing, hunting, and canoeing,” said U.S. Attorney Matthew Schneider of the Eastern District of Michigan.  “We are thankful to Dow and the trustees for their work in reaching this excellent result, which will benefit the residents of the Saginaw Bay area and the wildlife and waterfowl that inhabit it.”

“The settlement requires Dow to implement and fund restoration projects outlined in a draft restoration plan that will benefit fish and wildlife and provide increased outdoor recreation opportunities for the American public,” said Charles Wooley, Regional Director for the U.S. Fish and Wildlife Service.  “This restoration work can now begin even while separate, ongoing clean-up efforts continue.” 

“The trustees are working to compensate the public for past and expected future losses to recreational fishing, park use and hunting as a result of public health advisories issued because of releases from Dow’s Midland facility,” said Michigan DNR Director Dan Eichinger.  “We appreciate being at the table to ensure that the citizens of Michigan are appropriately compensated for resource damage, and we look forward to continuing to improve the natural resources, wildlife and fisheries opportunities for people within these areas.”

“In addition to the Natural Resource Damage Assessment and Restoration settlement, the State is simultaneously resolving some claims with Dow that will result in both the funding and the property to support two additional projects that benefit the community,” said Michigan EGLE Director Liesl Eichler Clark.  “These projects include a docking facility and education center to bolster BaySail’s environmental science program and the renovation of the Saginaw River Rear Range Lighthouse to allow public use.”

Restoration Projects Highlights

The restoration projects described in the settlement compensate the public for injuries to natural resources, including lost uses of natural resources by recreational anglers, park users, and hunters, by improving habitat for fish and game species, and through creating new – or improving existing – habitat areas that also provide public access to natural resources in and around the Tittabawassee River, Saginaw River and Saginaw Bay.

Several restoration projects under the settlement will benefit fishery resources through measures that include construction of fish spawning areas in Saginaw Bay, construction of a rock ramp or similar structure to promote increased fish passage over a dam situated at Dow’s Midland facility and improvements to water control structures in the Shiawassee National Wildlife Refuge. 

Other projects will enhance and preserve natural habitat on thousands of acres of property.  Several projects will include planting native species and using natural seedbeds to restore diverse types of suitable natural habitats in areas that currently provide limited habitat value to wildlife.  Some projects include provisions for creation of new wetland habitat or enhancement of existing wetland areas.  One project will preserve an extensive green corridor along the Tittabawassee River that will be beneficial to wildlife. 

Several of the restoration projects will establish publicly accessible nature areas that will provide increased opportunities for recreational use and enjoyment of restored natural resources, through establishment of amenities such as nature trails, fishing platforms, and a bike trail.  One of the projects will support increased recreational boating and fishing in Saginaw River and Bay by expanding an existing boat launch facility at the mouth of the Saginaw River. 

Other Terms of the Settlement

In addition to resolving natural resource damage claims against Dow, the proposed settlement also incorporates an agreement, exclusively between the State and Dow, that would waive potential State claims for recovery of a limited set of response costs identified in the settlement, in exchange for Dow’s commitment to implement two other projects along the lower Saginaw River that are not part of the Trustees’ proposed natural resource restoration program.

The settlement does not address Dow’s liability to clean up contamination from the Midland facility.  Dow has been addressing certain offsite contamination from the Midland facility under a series of administrative orders issued by the EPA.  Much of that effort to date has focused on contamination within the Tittabawassee River or in riverbank and floodplain areas adjacent to the river.  At this point, EPA mandated cleanup activity is continuing in and along the Tittabawassee River and then downstream into the Saginaw River.  Dow has also been addressing other contamination related to the Midland facility under the direction of EGLE.  The settlement reserves all rights of the United States and the State to require Dow to continue and complete cleanup of contamination from the Midland facility.   

Similarly, except for the limited waiver of State response costs referred to above, the settlement does not resolve Dow’s liability to reimburse the governments for costs they incur in responding to contamination from the Midland facility.

Finally, the proposed settlement will resolve potential claims by Dow against the United States for recovery of a portion of any natural resource damage expenses and cleanup costs relating to any past or future releases of hazardous substances from the Midland facility.  Dow contends that the United States is liable for a portion of these costs, based primarily on federal involvement in WWII era production activities at the Midland facility.

Guiding the Settlement

Concurrently with the settlement, trustees released for public comment a draft restoration plan that will guide restoration activities carried out in response to contamination from Dow’s Midland facility.  Restoration activities under the settlement must be consistent with the final restoration plan adopted by the Trustees.

The natural resource trustees assessed injuries to natural resources under the Natural Resources Damage Assessment and Restoration program, which aims to compensate the public for past, present and future loss of fish, wildlife habitat and use of natural areas resulting from releases of contaminants into the environment.

As part of this program, the trustees identify parties responsible for contamination and either litigate or negotiate settlements to fund restoration actions.

History of Contamination

The Dow facility in Midland, Michigan, began operating in 1897. Chemical production through the years resulted in the generation of waste products, including dioxins, which were released into the Tittabawassee River.

These chemical waste products contaminated the Tittabawassee River and its floodplains and moved into the Saginaw River and Saginaw Bay.

The natural resources settlement is separate from the ongoing cleanup of the area being implemented by Dow under the direction of the Michigan Department of Environment, Great Lakes, and Energy and the U.S. Environmental Protection Agency.

Under this settlement, restoration work can begin within the watershed, while cleanup efforts in and along the rivers continue.

Public Review and Comment

The proposed consent decree and the Draft Restoration Plan and Environmental Assessment are available at https://www.fws.gov/midwest/es/ec/nrda/TittabawasseeRiverNRDA/

The Department of Justice will publish a Federal Register Notice advising the public of the opportunity to submit comments on the proposed Consent Decree, as well as on the Draft Restoration Plan and Environmental Assessment, within 45 days from the date of publication of the Federal Register Notice.  A copy of the Federal Register Notice will be posted at https://www.fws.gov/midwest/es/ec/nrda/TittabawasseeRiverNRDA/.

Comments on the Consent Decree may be submitted to the Department of Justice at pubcomment-ees.enrd@usdoj.gov or Deputy Assistant Attorney General, U.S. DOJ – ENRD, P.O. Box 7611, Washington, D.C. 20044-7611.

Comments on Draft Restoration Plan and Environmental Assessment may submitted to t.river.nrda@fws.gov or Lisa Williams, U.S. Fish and Wildlife Service, 2651 Coolidge Road, Suite 101, East Lansing, MI. 48823.

The U.S. Attorney will join trustees at a public meeting to provide more information on the plan and to answer questions at 7 p.m. Thursday, Nov. 21, at the Four Points by Sheraton Saginaw, 4960 Towne Centre Road in Saginaw.

Midland, MI – Under a proposed settlement announced today by the United States, the State of Michigan and the Saginaw Chippewa Indian Tribe of Michigan, The Dow Chemical Company will implement and fund an estimated $77 million in natural resource restoration projects intended to compensate the public for injuries to natural resources caused by the release of hazardous substances from Dow’s Midland, Michigan facility.  The proposed settlement, which was lodged today in the United States district court for the Eastern District of Michigan, is subject to public comment and to approval by the court. 

U.S. Attorney Matthew Schneider will join trustees at a public meeting to provide more information on the plan and to answer questions at 7 p.m. Thursday, Nov. 21, at the Four Points by Sheraton Saginaw, 4960 Towne Centre Road in Saginaw.

According to a complaint filed on behalf of federal, state and tribal natural resource trustees, Dow released dioxin-related compounds and other hazardous substances from its Midland, Michigan, facility, and such releases caused injuries to natural resources.  The complaint alleges that hazardous substances from Dow’s facility adversely affected fish, invertebrates, birds and mammals, contributed to the adoption of health advisories to limit consumption of certain wild game and fish, and resulted in soil contact advisories in certain areas including some public parks.  

The settlement identifies a number of specific natural resource restoration projects that will be implemented in different parts of Midland, Saginaw and Bay counties, consistent with provisions of a natural resource restoration plan developed by designated natural resource trustees, including the Department of the Interior’s U.S. Fish and Wildlife Service and Bureau of Indian Affairs; the State of Michigan’s Department of Natural Resources (DNR), Department of Environment, Great Lakes, and Energy (EGLE), and Department of Attorney General; and the Saginaw Chippewa Indian Tribe of Michigan. 

Dow will implement eight natural resource restoration projects described in the settlement at the company’s expense, subject to oversight and approval by the natural resource trustees.   In addition, Dow will pay $6.75 million, plus interest, to a Restoration Account that will used by Trustees to fund five other restoration projects described in the settlement. 

The settlement also requires Dow to pay another $15 million, plus interest that will be used by the Trustees for various purposes.  At least $5 million of this funding will be used to support implementation of additional natural resource restoration projects that will be selected by the trustees in the future, after a separate opportunity for public input on restoration project proposals.  This funding will also be used to cover costs of long-term monitoring and maintenance of restoration projects under the settlement, as well as costs that the Trustees will incur in overseeing restoration projects. 

Finally, Dow is required to reimburse costs previously incurred by federal and state trustees in connection with the assessment of natural resource damages relating to Dow’s releases. 

“Today’s settlement is good news for communities in this region, and it builds upon ongoing cleanup efforts under the direction and supervision of the EPA and the Michigan Department of Environment, Great Lakes and Energy,” said Principal Deputy Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division  “The extensive habitat restoration provisions of this settlement will help accelerate recovery of natural resources over a large area where resources have been adversely impacted as a result of decades of exposure to Dow’s hazardous substances.” 

 “With this settlement, the natural resources in the Saginaw Bay area will be restored through the creation of natural habitat areas, nature preserves, hiking and biking trails, and greater access for fishing, hunting, and canoeing,” said U.S. Attorney Matthew Schneider of the Eastern District of Michigan.  “We are thankful to Dow and the trustees for their work in reaching this excellent result, which will benefit the residents of the Saginaw Bay area and the wildlife and waterfowl that inhabit it.”

 “The settlement requires Dow to implement and fund restoration projects outlined in a draft restoration plan that will benefit fish and wildlife and provide increased outdoor recreation opportunities for the American public,” said Charles Wooley, Regional Director for the U.S. Fish and Wildlife Service.  “This restoration work can now begin even while separate, ongoing clean-up efforts continue.” 

“The trustees are working to compensate the public for past and expected future losses to recreational fishing, park use and hunting as a result of public health advisories issued because of releases from Dow’s Midland facility,” said Michigan DNR Director Dan Eichinger.  “We appreciate being at the table to ensure that the citizens of Michigan are appropriately compensated for resource damage, and we look forward to continuing to improve the natural resources, wildlife and fisheries opportunities for people within these areas.”

“In addition to the Natural Resource Damage Assessment and Restoration settlement, the State is simultaneously resolving some claims with Dow that will result in both the funding and the property to support two additional projects that benefit the community,” said Michigan EGLE Director Liesl Eichler Clark.  “These projects include a docking facility and education center to bolster BaySail’s environmental science program and the renovation of the Saginaw River Rear Range Lighthouse to allow public use.”

Restoration Projects Highlights

The restoration projects described in the settlement compensate the public for injuries to natural resources, including lost uses of natural resources by recreational anglers, park users, and hunters, by improving habitat for fish and game species, and through creating new – or improving existing – habitat areas that also provide public access to natural resources in and around the Tittabawassee River, Saginaw River and Saginaw Bay.

Several restoration projects under the settlement will benefit fishery resources through measures that include construction of fish spawning areas in Saginaw Bay, construction of a rock ramp or similar structure to promote increased fish passage over a dam situated at Dow’s Midland facility and improvements to water control structures in the Shiawassee National Wildlife Refuge. 

Other projects will enhance and preserve natural habitat on thousands of acres of property.  Several projects will include planting native species and using natural seedbeds to restore diverse types of suitable natural habitats in areas that currently provide limited habitat value to wildlife.  Some projects include provisions for creation of new wetland habitat or enhancement of existing wetland areas.  One project will preserve an extensive green corridor along the Tittabawassee River that will be beneficial to wildlife. 

Several of the restoration projects will establish publicly accessible nature areas that will provide increased opportunities for recreational use and enjoyment of restored natural resources, through establishment of amenities such as nature trails, fishing platforms, and a bike trail.  One of the projects will support increased recreational boating and fishing in Saginaw River and Bay by expanding an existing boat launch facility at the mouth of the Saginaw River. 

Other Terms of the Settlement

In addition to resolving natural resource damage claims against Dow, the proposed settlement also incorporates an agreement, exclusively between the State and Dow, that would waive potential State claims for recovery of a limited set of response costs identified in the settlement, in exchange for Dow’s commitment to implement two other projects along the lower Saginaw River that are not part of the Trustees’ proposed natural resource restoration program.

The settlement does not address Dow’s liability to clean up contamination from the Midland facility.  Dow has been addressing certain offsite contamination from the Midland facility under a series of administrative orders issued by the EPA.  Much of that effort to date has focused on contamination within the Tittabawassee River or in riverbank and floodplain areas adjacent to the river.  At this point, EPA mandated cleanup activity is continuing in and along the Tittabawassee River and then downstream into the Saginaw River.  Dow has also been addressing other contamination related to the Midland facility under the direction of EGLE.  The settlement reserves all rights of the United States and the State to require Dow to continue and complete cleanup of contamination from the Midland facility.   

Similarly, except for the limited waiver of State response costs referred to above, the settlement does not resolve Dow’s liability to reimburse the governments for costs they incur in responding to contamination from the Midland facility.

Finally, the proposed settlement will resolve potential claims by Dow against the United States for recovery of a portion of any natural resource damage expenses and cleanup costs relating to any past or future releases of hazardous substances from the Midland facility.  Dow contends that the United States is liable for a portion of these costs, based primarily on federal involvement in WWII era production activities at the Midland facility.

Guiding the Settlement

Concurrently with the settlement, trustees released for public comment a draft restoration plan that will guide restoration activities carried out in response to contamination from Dow’s Midland facility.  Restoration activities under the settlement must be consistent with the final restoration plan adopted by the Trustees.

The natural resource trustees assessed injuries to natural resources under the Natural Resources Damage Assessment and Restoration program, which aims to compensate the public for past, present and future loss of fish, wildlife habitat and use of natural areas resulting from releases of contaminants into the environment.

As part of this program, the trustees identify parties responsible for contamination and either litigate or negotiate settlements to fund restoration actions.

History of Contamination

The Dow facility in Midland, Michigan, began operating in 1897. Chemical production through the years resulted in the generation of waste products, including dioxins, which were released into the Tittabawassee River.

These chemical waste products contaminated the Tittabawassee River and its floodplains and moved into the Saginaw River and Saginaw Bay.

The natural resources settlement is separate from the ongoing cleanup of the area being implemented by Dow under the direction of the Michigan Department of Environment, Great Lakes, and Energy and the U.S. Environmental Protection Agency.

Under this settlement, restoration work can begin within the watershed, while cleanup efforts in and along the rivers continue.

Public Review and Comment

The proposed consent decree and the Draft Restoration Plan and Environmental Assessment are available at https://www.fws.gov/midwest/es/ec/nrda/TittabawasseeRiverNRDA/

The Department of Justice will publish a Federal Register Notice advising the public of the opportunity to submit comments on the proposed Consent Decree, as well as on the Draft Restoration Plan and Environmental Assessment, within 45 days from the date of publication of the Federal Register Notice.  A copy of the Federal Register Notice will be posted at https://www.fws.gov/midwest/es/ec/nrda/TittabawasseeRiverNRDA/.

Comments on the Consent Decree may be submitted to the Department of Justice at pubcomment-ees.enrd@usdoj.gov or Deputy Assistant Attorney General, U.S. DOJ – ENRD, P.O. Box 7611, Washington, D.C. 20044-7611.

Comments on Draft Restoration Plan and Environmental Assessment may submitted to t.river.nrda@fws.gov or Lisa Williams, U.S. Fish and Wildlife Service, 2651 Coolidge Road, Suite 101, East Lansing, MI. 48823.

 

Detroit Police Department Officer, Deonne Dotson, was convicted today by a federal jury in Detroit on six charges of extortion announced United States Attorney Matthew Schneider.

Joining Schneider in the announcement were Steven D’Antuono, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, Patricia Armstrong, U.S. Postal Inspector in Charge, U.S. Postal Inspection Service, Detroit Division and Chief James Craig, Detroit Police Department.

The 8-day trial was conducted before United States District Robert H. Cleland. Officer Dotson, age 47, will be sentenced on March 19, 2020 at 1;30 p.m.  Each of the extortion charges carry a maximum sentence of 20 years imprisonment and a fine of $250,000.

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 to 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 are:  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 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

Electro-Plating Services Inc. (EPS), located in Madison Heights, Michigan, was sentenced in federal court in Detroit to­­­­­­­­ five years of probation, and was ordered to pay restitution of $1,449,963.94 joint and several with Gary Sayers to the U.S. Environmental Protection Agency (EPA). Sayers, EPS’s owner, was sentenced to one year in prison followed by three years of supervised release. The Honorable Stephen J. Murphy issued the sentence, having accepted each of their pleas of guilty to a federal hazardous waste storage felony on Feb. 14, 2019.

The crime related to Sayers’s operation of EPS, which used chemicals such as cyanide, chromium, nickel, chloride, trichloroethylene, and various acids and bases, as part of the plating process. After these chemicals no longer served their intended purpose, they became hazardous wastes, which required handling in compliance with the Resource Conservation and Recovery Act. Rather than having EPS’s hazardous wastes legally transported to a licensed hazardous waste facility, Sayers stored the hazardous waste in numerous drums and other containers, including a pit dug into the ground in the lower level of the EPS building in Madison Heights. For years, Sayers stonewalled state efforts to get him to legally deal the hazardous wastes. Ultimately, the EPA’s Superfund program spent $1,449,963.94 to clean up and dispose of the hazardous wastes.

“This case shows that anyone who chooses to do business with dangerous materials must obey federal laws that protect our fellow Americans and the environment.  These defendants’ knowing, illegal storage of waste cyanide, highly corrosive wastes, toxic chromium waste, and reactive wastes posed a significant danger and threat to nearby communities and the environment,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “They disregarded the law and numerous warnings and requests by state authorities to comply with their legal obligations. The Department of Justice will act to protect public health and safety.”  

“The improper storage of hazardous waste presents a significant danger to our communities,” said U.S. Attorney Matthew Schneider of the Eastern District of Michigan.  “EPS blatantly disregarded the safety of our community and environment.  We hope this case will serve as notice to other businesses that law enforcement will take all necessary action to ensure compliance with our environmental laws and protect the people of Michigan.”

“Hazardous wastes pose serious risks to the health of entire communities, so it’s imperative they be handled and disposed of safely and legally,” said Special Agent in Charge Jennifer Lynn of the EPA’s criminal enforcement program in Michigan.  “Today’s sentencing sends a clear signal that EPA and its law enforcement partners are committed to the protection of public health and will continue to pursue those who blatantly undermine those efforts.”

According to court records, Sayers—who owned and was the President of EPS—knew that such storage was illegal and had managed the company’s former Detroit facility where he kept hazardous wastes illegally.  Starting in 1996, the Michigan Department of Environmental Quality (MDEQ) repeatedly sent him warnings about his illegal handling of hazardous waste. In 2005, Sayers was charged with and pleaded guilty to illegally transporting hazardous wastes in state court. During the ensuing years, the MDEQ attempted to get Sayers and EPS to properly manage the amounts of hazardous wastes piling up at the Madison Heights location. The MDEQ issued numerous letters of warning and violation notices to the company regarding its hazardous wastes.

In 2016, the MDEQ identified over 5,000 containers of liquid and solid wastes at the Madison Heights location. That same year, the city of Madison Heights revoked the company’s occupancy permit. In January 2017, the EPA initiated a Superfund removal action, after determining that nature and threats posed by the stored hazardous waste required a time-critical response. The cleanup was completed in January 2018.

Assistant Attorney General Clark and U.S. Attorney Matthew J. Schneider thanked EPA’s Criminal Investigation Division and the Michigan Department of Natural Resources-Environmental Investigation Section for their work investigating this case, as well as the Michigan Department of Environment, Great Lakes, and Energy (EGLE, formerly the MDEQ) and the Coast Guard Investigative Service, which provided investigative support. Senior Counsel Kris Dighe of the Environmental Crimes Section of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Sara D. Woodward of the U.S. Attorney’s Office for the Eastern District of Michigan are prosecuting the case.

Doniel A. Heard, 37 of Canton, pleaded guilty on October 29, 2019, to assault with a dangerous weapon in aid of racketeering, United States Attorney Matthew Schneider announced. 

Schneider was joined in the announcement by Special Agent in Charge Steven M. D'Antuono of the Federal Bureau of Investigation, Detroit Division (FBI), John C. Mullaly, Chief of Police of the Genesee Township Police Department, and David S. Leyton, Genesee County Prosecuting Attorney. 

Heard entered the guilty plea before United States District Court Judge Linda V. Parker.

In his guilty plea, Heard admitted that at the time of the assault he was the leader of a Michigan set of the national Bloods street gang.  Believing that the 15-year old victim had disrespected two fellow gang members, Heard and three other gang members beat and robbed the boy.  After the beating, the other gang members 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.  The 15-year old victim suffered permanent bodily injury as a result of the assault. 

“This was a vicious attack on a 15-year old boy by a violent street gang.  This type of senseless violence will not be tolerated.  We will continue to work with our federal, state, and local law enforcement partners to bring the full force of federal law upon gang members who seek to destroy our communities with violence and intimidation,” stated United States Attorney Schneider.

“The reason for this callous and violent crime was as senseless as the brutality of the assault itself,” said FBI Special Agent in Charge D'Antuono.  “This investigation sends a clear message that the FBI and our law enforcement partners throughout Michigan will not stand by as gangs attempt to terrorize our community, and that those involved in violent gang activity will be brought to justice.”

Heard faces up to 20 years in federal prison.  Sentencing has been scheduled for March 4, 2020 before Judge Parker in the United States District Court in Flint.  Two other gang members who participated in the assault are also scheduled to be sentenced that day.  Talasha Willis, a gang member who also participated in the assault, was sentenced in May of this year to 100 months in federal prison. 

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 is being prosecuted by Assistant United States Attorneys Chris Rawsthorne, Ann Nee, and Anthony Vance.   

In a civil damages trial that concluded today before U.S. District Judge Sean Cox, a member of the Detroit Fugitive Apprehension Team (“DFAT”) was cleared of any wrongdoing in the shooting death of a fugitive wanted for armed robbery, announced United States Attorney Matthew Schneider.

While the loss of life in this case was tragic, the evidence clearly established that Agent Quinn acted in self-defense,” said United States Attorney Matthew Schneider.  “We are thankful that the jury carefully reviewed the evidence and agreed.”

After a two-week trial, an eight-member jury found defendant Mitchell Quinn, deputized at the time as a U.S. Marshals task force officer, did not violate the constitutional rights of Terrance Kellom, a felon who was wanted on an arrest warrant for armed robbery, among other offenses.  The jury deliberated less than three hours before returning their verdict of no cause. 

According to the evidence presented at trial, agent Quinn acted in self-defense when Terrence Kellom attacked him with a hammer during the attempted arrest of Mr. Kellom on April 27, 2015. 

The defense was led by Assistant U.S. Attorneys Brandon Helms and Zak Toomey with the assistance of paralegal Leanna Mayberry.

A Detroit man was sentenced yesterday after having been convicted by a jury in October, 2018, on charges of murder-for-hire, conspiracy to possess with intent to distribute cocaine and oxycodone, and use of a firearm causing death during and in relation to a drug trafficking crime, announced United States Attorney Matthew Schneider.

Schneider was joined in the announcement by Steven M. D'Antuono, Special Agent in Charge of the Detroit FBI Field Office and Chief James Craig, Detroit Police Department.

Andre Watson, 33, received a sentence of life plus 10 years in federal prison.

The four-week trial was conducted before United States District Judge Avern Cohn. 

According to the evidence presented at trial, on September 11, 2015, a drive-by shooting took place outside of They Say restaurant in the Warehouse District of Detroit in which the victim, Devin Wallace, 30, of Novi, Michigan, was killed. The investigation into the shooting determined Deaunta Belcher was part of an intricate drug and fraud scheme throughout Detroit. Belcher and others, including his co-defendant Darnell Bailey and the victim Devin Wallace, obtained cars, apartments, furniture, and other items fraudulently using the identities of drug customers and other fraud victims, and leased those items to drug dealers throughout the city. Belcher and others decided to kill Wallace out of greed so they could assume his role in their fraud and drug conspiracy.

The evidence showed that Belcher and his co-defendant, Darnell Bailey, offered two men, Andre Watson, and Stephen Brown, money, a car, and other compensation to commit the murder. Watson and Brown spent weeks trying to locate Wallace, and on September 11, 2015, Belcher informed Watson and Brown that Wallace would be at They Say. Watson, Brown, and a third man, Billie J. Chambers, drove to They Say where Brown fired toward Wallace twice and Watson shot Wallace 12 times at close range. Nine bullets struck his body, with six bullets entering his head. Wallace died at the scene. In an effort to mislead investigators, Belcher and Bailey told police that Wallace was killed for cooperating with the DEA in a separate drug investigation.

The jury also convicted Belcher for obstruction of justice for statements made to Detroit police on September 24, 2015, in which he tried to mislead investigators regarding his relationship with Stephen Brown.

Co-defendants, Billie J. Chambers, 33, and Stephen Brown, 27, both from Detroit, previously pleaded guilty to murder-for-hire for their respective involvement in the shooting.  Chambers received a sentence of 144 months and Brown received a sentence of 204 months.  Darnell Bailey, 29, of Roseville and Deaunta Belcher, 36, are awaiting sentencing.

“These defendants carried out a brazen, cold blooded murder in broad daylight near downtown Detroit, and the shooting shocked our community when it was broadcast on the evening news,” United States Attorney Matthew Schneider said.  “Thanks to the tireless efforts of the FBI and the Detroit Police Department, the people of Detroit can rest easier knowing these defendants will remain behind bars for the rest of their lives. Eradicating violent crime remains our top priority, and we will continue to work every day so Michiganders can go about their lives without fear of harm.”

“The defendants showed a callous disregard for life and the safety of our community that is all too often displayed by those involved in large-scale drug trafficking operations,” said SAC D’Antuono. “This sentence is the result of a strong collaboration among the FBI’s Violent Crimes Task Force, the Detroit Police Department, and the US Attorney’s Office and a step towards making the streets of Detroit a little safer.”

The investigation was a collaboration between Detroit Police and members of the FBI Violent Crimes Task Force. 

The case was prosecuted by Assistant United States Attorney Terrence Haugabook.

Two members of the Seven Mile Bloods Street Gang were sentenced for their participation in various criminal acts, including racketeering conspiracy and related firearm offenses, announced United States Attorney Matthew Schneider.                 

Schneider was joined in the announcement by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Steven M. D'Antuono, Special Agent in Charge of the Detroit Field Office and Chief James Craig, Detroit Police Department.

“These sentences should send a clear message to other members of gangs operating in the City of Detroit – our community has no tolerance for the senseless murders and violence spread by gang members,” said U.S. Attorney Schneider.   

Corey Bailey, aka “Sonny,” “Cocaine Sonny,” 31, of Detroit, was sentenced to two life sentences and three 10 year sentences, all to run concurrent, after having been convicted of RICO conspiracy; murder in aid of racketeering; attempted murder in aid of racketeering; and possession of a firearm in furtherance of a crime of violence;

Arlandis Shy, aka “Grymee,” “Vil,” 30, of Clinton Township was sentenced to 18 years and 4 months after having been convicted of RICO conspiracy.

The 10-week trial was conducted last year before U.S. District Judge George Caram Steeh in Detroit, Michigan.  The jury deliberated approximately seven days before reaching their verdicts.  Amongst those convicted were:

•Robert Brown II, aka “R.O.,” 37, of Warren, Michigan, is awaiting sentencing after having been convicted of RICO conspiracy, attempted murder in aid of racketeering; and use and carry of a firearm during and in relation to a crime of violence; and

•Keithon Porter, aka “KP,” 33, of Detroit; is awaiting sentencing after having been  convicted of RICO conspiracy; murder in aid of racketeering; attempted murder in aid of racketeering; and use and carry of a firearm during and in relation to a crime of violence causing death.

A fifth defendant, Eugene Fisher, aka “Fes,” 39, of Detroit, was sentenced to 90 months after having been convicted of two counts of felon in possession of a firearm.

According to evidence presented during the trial, the Seven Mile Bloods gang operates on the east side of Detroit, between Gratiot Avenue and Kelly Road and between Seven and Eight Mile Roads.  Seven Mile Bloods or “SMB” members have claimed this area as their territory and refer to it as the “Red Zone.”  The area is in zip code 48205, which SMB members refer to as “4-8-2-0-Die” in some of their rap lyrics.

Evidence presented at trial showed an ongoing gang war between the Seven Mile Bloods and an alliance of other gangs operating on Detroit’s east side stemming from a murder that occurred in July 2014.  These rival gangs have been violently attacking one another and have posted respective “hit lists” on social media.  This shooting war has led to increased homicides and non-fatal shootings on Detroit’s east side.

This case was the work of the Detroit One Initiative.  Investigators were able to bring together separate probes into various members of this organization and its criminal activities into one encompassing investigation. Partners include the Detroit Police Department Gang Intelligence Unit, the FBI Violent Gang Task Force, which consists of representatives of Detroit Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, Michigan Department of Corrections and Michigan State Police, with the cooperation of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Drug Enforcement Administration (DEA).

The investigation further resulted in the seizure of more than 20 firearms, including several high-powered assault rifles.

The case was prosecuted by Julie A. Finocchiaro of the Criminal Division’s Organized Crime and Gang Section, Justin Wechsler of the Criminal Section of the Antitrust Division, and Assistant U.S. Attorneys, Mark Bilkovic and Tare Wigod of the U.S. Attorney’s Office for the Eastern District of Michigan.

The owner of a Michigan home health agency was sentenced today to 60 months in prison for his role in a scheme involving approximately $1.5 million in Medicare claims for home health services that were procured through the payment of illegal kickbacks.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Steven M. D'Antuono of the FBI’s 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 made the announcement.

Atheir Amarrah, 44, of West Bloomfield, Michigan, the owner of Prompt Care Home Health Services Inc. of West Bloomfield, Michigan, was sentenced by U.S. District Judge Judith E. Levy of the Eastern District of Michigan, who also ordered him to pay approximately $1 million in restitution, jointly and severally with his co-conspirators.  In May 2018, Amarrah pleaded guilty to one count of conspiracy to defraud the United States and pay and receive health care kickbacks in connection with a federal health care program and to four counts of paying health care kickbacks. 

As part of his guilty plea, Amarrah admitted that he paid illegal kickbacks to recruiters in exchange for Medicare beneficiary referrals and billed Medicare for claims procured through these illegal kickbacks.  According to court documents, Amarrah caused a loss of over $1 million to the Medicare program by submitting claims to Medicare from 2013 through 2017 related to Medicare beneficiary information that he obtained by paying illegal kickbacks. 

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.  Trial Attorneys Howard Locker and Jay McCormack, Assistant Chief Jacob Foster, and Counsel to the Chief of the Health Care Fraud Unit Amy Markopoulos of the Fraud Section prosecuted the case.  Assistant U.S. Attorney Paul Kuebler of the Eastern District of Michigan handled the asset forfeiture proceedings. 

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 Jackson man was sentenced yesterday to 35 years’ imprisonment for convictions of distributing heroin mixed with fentanyl, causing the death to at least one individual, announced United States Attorney Matthew Schneider.

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

"Overdose deaths from heroin and fentanyl have become a national epidemic, including here in Michigan, and illegal opioid pushers such as DeMario Peterson are a significant part of our problem,” Schneider said. “Michigan law enforcement is fully committed to battling back against these opioid traffickers and the tremendous pain they are causing to overdose victims and their families.” 

“Armed drug traffickers present a significant threat to public safety leading to a path of destruction in the community,“  said Special Agent in Charge James Deir. “In this case, the path intersected with the greed of Demario Peterson who knowingly sold poison to members of the community which resulted in the death a vibrant 21 year old mother.  ATF will continue to partner with our law enforcement partners to utilize every available resource to remove these dangerous criminals from our communities.”

In May of this year, a jury convicted DeMario Peterson, 31, of multiple drug and firearms crimes.   At trial, the government admitted evidence demonstrating that Peterson mixed fentanyl into the heroin that he distributed through numerous runners.  A 21 year old woman overdosed and died from Peterson’s drugs.

This case was investigated by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, in cooperation with Jackson County Sheriff’s Department.  The case was prosecuted by Assistant United States Attorney Maggie Smith of the Drug Task Force, and Assistant United States Attorney Blake Hatlem of the Violent and Organized Crime Unit.

A Bloomfield, Michigan, biodiesel fuel dealer pleaded guilty today to filing a false income tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew Schneider of the Eastern District of Michigan.

According to plea documents, Chandra Yarlagadda, 54, owned and operated Alpha Bioenergy LLC (Alpha), formerly known as Naturol Bioenergy LLC, which purchased and sold biodiesel fuel. Pursuant to the Clean Air Act and related federal regulations, companies that purchase and sell biodiesel fuel are required to purchase Renewable Identification Numbers (RINs) for any volume of renewable fuel bought or sold. RINs are credits that obligated parties under the Clean Air Act, such as Alpha, to demonstrate compliance with annual standards set forth by the Environmental Protection Agency.

Yarlagadda reported income and expenses associated with Alpha on Schedules C attached to his personal income tax returns. Yarlagadda admitted as part of his plea that on the Schedules C attached to his 2009, 2010, and 2011 tax returns, he substantially overstated expenses associated with the purchase of RINs. For these three years, Yarlagadda falsely reported RIN expenses totaling more than $14.2 million, when, in fact, he was only entitled to claim approximately $80,000 in RIN expenses for those years. By claiming these inflated deductions, Yarlagadda avoided paying an additional $2.3 million in federal income taxes that was due.

U.S. District Judge Gershwin A. Drain set sentencing for March 19, 2020. Yarlagadda faces a maximum term of imprisonment of three years, as well as a term of supervised release and a fine. As part of his plea agreement, Yarlagadda agreed to pay restitution to the Internal Revenue Service (IRS) in the amount of $2,310,948.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Schneider thanked special agents of IRS Criminal Investigation, the U.S. Environmental Protection Agency – Criminal Investigation Division, and Homeland Security Investigations, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Sarah C. Ranney of the Tax Division who are prosecuting the case, and Assistant United States Attorney Stephen Hiyama of the Eastern District of Michigan who provided substantial assistance in this matter.

Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.    

Jeffery Pietrzyk, a former high-level official in the UAW’s General Motors Department, pleaded guilty today to conspiring with other UAW officials to engage in honest services fraud by taking over $123,000 in bribes and kickbacks from UAW vendors and contractors and to conspiring to launder the proceeds of the scheme 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, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Manny Muriel, 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.

Jeffery Pietrzyk, 74, of Grand Island, NY, pleaded guilty to conspiring to engage in honest services wire fraud and to conspiring to launder money between 2006 and 2018.  During the plea hearing, Pietrzyk admitted that he conspired with two other high-level UAW officials in the UAW’s GM Department to take millions of dollars in bribes and kickbacks from vendors doing business with the joint UAW-GM Center for Human Resources.  The Center for Human Resources is supposed to be a center for training UAW workers employed by GM.  Pietrzyk and the other UAW officials served on the Executive Board for the Center for Human Resources, and they were responsible for approving contracts with the vendors. Pietrzyk admitted that over the course of the twelve year conspiracy, he and the other two UAW officials demanded and accepted bribes and kickbacks from the vendors in exchange for securing or maintaining contracts with the Center for Human Resources or with the UAW’s GM Department.    

Pietrzyk and his co-conspirators took bribes and kickbacks from the vendors in exchange for contracts with the UAW and/or the Center for Human Resources for watches, jackets, and UAW stores at GM manufacturing facilities.  For example, in 2011, Pietrzyk and two other UAW officials demanded that a vendor give them a $300,000 kickback on a $6 million contract to purchase 50,000 jackets emblazoned with “Team UAW-GM.”  One UAW official collected the $300,000 kickback and delivered the proceeds to Pietrzyk, who in turn delivered the money to another UAW official. 

In another corrupted contract, Pietrzyk and his UAW co-conspirators demanded kickbacks on a $3.9 million contract for the Center for Human Resources to buy 58,000 watches for all UAW members employed by GM.  The UAW officials demanded over $300,000 in kickbacks on the watch contract to be distributed between 2013 through 2016.  Some of the kickbacks were distributed in the form of checks disguised as tens of thousands of dollars in payments for “antique furniture” which were deposited into Pietrzyk’s personal bank account. The majority of the kickbacks were distributed as cash.  In 2014, the UAW-GM Center for Human Resources received the 58,000 watches from the vendor.  However, the watches were never distributed to UAW members.  Instead, the watches have been sitting in storage in a warehouse for over five years.                    

Besides conspiring with other UAW officials and vendors to the UAW, Pietrzyk also admitted that he conspired to launder the proceeds of the kickback scheme by using various methods to conceal and disguise the bribes and kickbacks through a lengthy and complicated series of financial transactions.  

Pietrzyk is the tenth defendant to plead guilty in connection with the ongoing criminal investigation into illegal payoffs to UAW officials by FCA executives and corruption within the UAW itself. The following 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), and former UAW Vice President Norwood Jewell (15 months in prison). Michael Grimes has pleaded guilty and is awaiting sentencing.   

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 hard-working members of the UAW deserve to be represented by union officials dedicated to providing honest representation free of corruption and greed, and today’s guilty plea is another step in the right direction,” stated US Attorney Schneider.

“Jeffrey Pietrzyk engaged in a fraudulent scheme to deprive the International United Auto Workers Union of his honest services by demanding and accepting over $120,000 in bribes and kickbacks from vendors. Instead of bargaining in the best interests of the UAW members, he chose to personally enrich himself. 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.

“In his official role, Mr. Pietrzyk was charged with protecting the interests of his fellow union employees, but today he admitted to abdicating this responsibility to serve his own interests,” said Steven M. D’Antuono, Special Agent in Charge of the FBI’s Detroit Field Office.  “We will continue to work with our law enforcement partners to investigate corruption and ensure the financial integrity of our country's labor unions.”

“Bribes, kickbacks, and money laundering permeated UAW culture for years and years, all at the expense of its membership.  Today’s guilty plea is yet another reminder that the Internal Revenue Service – Criminal Investigation and its law enforcement partners are dedicated to uncovering and stopping illegal and corrupt business leaders from taking advantage of not only their employees, but also the American tax payers,” said Special Agent in Charge Muriel, Detroit Field Office, Internal Revenue Service – Criminal Investigations.  

“Jeffery Pietrzyk betrayed the trust of the union membership when he used his position to enrich himself and others within the UAW by accepting bribes and kickbacks from UAW vendors and contractors,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “Protecting members against corruption perpetrated by their union leaders is critical to the mission of OLMS.”

The case is being prosecuted by Assistant U.S. Attorneys Frances Carlson and Eaton Brown.

A Latin Counts gang member was sentenced today to 30 years in federal prison for conspiracy to commit murder in aid of racketeering and assault with a dangerous weapon in aid of racketeering, announced United States Attorney Matthew Schneider, Special Agent in Charge James Deir of the ATF’s Detroit Division, and Chief James Craig of the Detroit Police Department.

Alberto Jackson, a/k/a “Berto,” 20, of Detroit, was sentenced by U.S. District Judge Robert H. Cleland for planning and carrying out with fellow Latin Counts gang members a drive-by shooting in a residential neighborhood of southwest Detroit that occurred on October 7, 2017, killing one victim and injuring two others. 

According to court records, the Latin Counts gang operates primarily in southwest Detroit and the downriver communities of Lincoln Park and Ecorse.  The Latin Counts are a criminal enterprise responsible for murders, robberies, and the distribution of illegal drugs.  The Latin Counts use violence to retaliate against rivals, intimidate citizens in the community, and advance members’ positions within the gang. 

Under the Detroit One initiative, and through the lead efforts of the ATF, FBI, and the Detroit Homicide Task Force, law enforcement identified and charged a total of seven violent members of the Latin Counts gang responsible for the drive-by shooting, all of whom have since pleaded guilty.

“Gang violence is a grave threat to public safety,” said U.S. Attorney Schneider.  “Today’s stern sentence is the latest example of how our office is aggressively prosecuting violent gang members who endanger the citizens of Michigan.”

“The ATF with our law enforcement partners will continue to relentlessly investigate gang and gun crimes to protect the public,” said ATF Special Agent in Charge Deir.  “This sentence shows that our efforts are working.”

Detroit One is a collaborative effort between law enforcement and the community to reduce homicides and other violent crimes in Detroit.  By working together, local, state, and federal law enforcement agencies strive to maximize their ability to identify and arrest individuals and groups initiating violence in Detroit. 

The case was prosecuted by Assistant United States Attorneys Louis Crisostomo, Robert VanWert, and Eric Straus. 

Today, the Department of Justice announced awards of more than $122 million to support public safety efforts in Michigan. The funds will help law enforcement agencies and community organizations in jurisdictions across the state fight gun, gang, drug and sexual violence, and bring criminals to justice.

“The fight against crime is a never-ending one, and it is our front-line law enforcement officers who lead that fight, working around the clock to take criminals off the street while partnering with service providers to reduce and prevent crime, serve victims and at-risk youth, and combat domestic violence and sexual assault,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “Attorney General Barr is very pleased to make these resources available to the citizens of Michigan, who deserve to know that the Department of Justice is doing everything in its power to secure their communities, safeguard their schools and homes, and deliver justice on their behalf.”

The awards include funds to hire and train law enforcement officers and to support state, local and tribal law enforcement activities. Funding will help agencies purchase body-worn cameras, investigate child exploitation cases, address domestic and sexual violence, improve criminal history records and administer victim service programs. Funds will also help jurisdictions prevent school violence, provide inmate reentry services, apply DNA technology to solving crimes and combat opioid and other drug abuse.

“We are proud to make these critical public safety resources available to help Michigan’s brave law enforcement officers reduce crime and protect the citizens of this great state,” said Phil Keith, Director of the Office of Community Oriented Policing Services. “We are also grateful for the hard work, strong commitment and outstanding leadership of U.S. Attorneys Matthew Schneider and Andrew Birge, who represent the Justice Department’s most vital link between Washington and the communities of their districts. We congratulate the award recipients and look forward to seeing the benefits that these investments will yield.”

“The grants announced today will give Michigan sheriffs and city police departments more resources to keep Michigan safe, and we hope these funds will offset some of the recent state budget cuts in Lansing,” said Matthew Schneider, U.S. Attorney for the Eastern District of Michigan. “These grants will also provide community service organizations tools to help crime victims, keep our schools safe, and protect elder Michiganders from abuse. Our local law enforcement partners are the best in the country, and I’m proud to stand shoulder to shoulder with them to protect the citizens of Michigan.”

“These awards are welcome news for our state, local and tribal law enforcement partners,” said Andrew Birge, U.S. Attorney for the Western District of Michigan. “Large and small departments alike throughout West Michigan face resource challenges. These awards will help them achieve their shared mission of securing the safety and well-being of our communities.”

Director Keith and Mike Costigan, Chief of Staff for OJP, highlighted the awards at today’s Rural Policing Forum, which was organized by the COPS Office, OJP’s Bureau of Justice Assistance and the U.S. Attorneys’ Offices for the Eastern and Western Districts of Michigan. The session was held to solicit input from rural and tribal law enforcement on the challenges they face and the resources they need. The U.S. Attorneys’ Offices lead the Justice Department’s crime-fighting efforts in the state, coordinating with local prosecutors and federal and local law enforcement agencies under the Project Safe Neighborhoods initiative.

The awards were made by the three grant-making components of the Department of Justice—OJP, the COPS Office and the Office on Violence Against Women.

OJP awards, organized under specific grant programs, are available online at https://ojp.gov/funding/Explore/OJPAwardData.htm. A full list of COPS awards is available online at https://cops.usdoj.gov/grants. For OVW awards, visit https://www.justice.gov/ovw/awards.

About the Office of Justice Programs:

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.

About the Office of Community Oriented Policing Services:

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.

About the Office on Violence Against Women:

The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.

 

LANSING, MI – Today, the Department of Justice announced awards of more than $122 million to support public safety efforts in Michigan. The funds will help law enforcement agencies and community organizations in jurisdictions across the state fight gun, gang, drug and sexual violence, and bring criminals to justice.

“The fight against crime is a never-ending one, and it is our front-line law enforcement officers who lead that fight, working around the clock to take criminals off the street while partnering with service providers to reduce and prevent crime, serve victims and at-risk youth, and combat domestic violence and sexual assault,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “Attorney General Barr is very pleased to make these resources available to the citizens of Michigan, who deserve to know that the Department of Justice is doing everything in its power to secure their communities, safeguard their schools and homes, and deliver justice on their behalf.”

The awards include funds to hire and train law enforcement officers and to support state, local and tribal law enforcement activities. Funding will help agencies purchase body-worn cameras, investigate child exploitation cases, address domestic and sexual violence, improve criminal history records and administer victim service programs. Funds will also help jurisdictions prevent school violence, provide inmate reentry services, apply DNA technology to solving crimes and combat opioid and other drug abuse.

“We are proud to make these critical public safety resources available to help Michigan’s brave law enforcement officers reduce crime and protect the citizens of this great state,” said Phil Keith, Director of the Office of Community Oriented Policing Services. “We are also grateful for the hard work, strong commitment and outstanding leadership of U.S. Attorneys Matthew Schneider and Andrew Birge, who represent the Justice Department’s most vital link between Washington and the communities of their districts. We congratulate the award recipients and look forward to seeing the benefits that these investments will yield.”

“The grants announced today will give Michigan sheriffs and city police departments more resources to keep Michigan safe, and we hope these funds will offset some of the recent state budget cuts in Lansing,” said Matthew Schneider, United States Attorney for the Eastern District of Michigan. “These grants will also provide community service organizations tools to help crime victims, keep our schools safe, and protect elder Michiganders from abuse. Our local law enforcement partners are the best in the country, and I’m proud to stand shoulder to shoulder with them to protect the citizens of Michigan.”

“These awards are welcome news for our state, local and tribal law enforcement partners,” said Andrew Birge, United States Attorney for the Western District of Michigan. “Large and small departments alike throughout West Michigan face resource challenges. These awards will help them achieve their shared mission of securing the safety and well-being of our communities.”

Director Keith and Mike Costigan, Chief of Staff for OJP, highlighted the awards at today’s Rural Policing Forum, which was organized by the COPS Office, OJP’s Bureau of Justice Assistance and the U.S. Attorneys’ Offices for the Eastern and Western Districts of Michigan. The session was held to solicit input from rural and tribal law enforcement on the challenges they face and the resources they need. The U.S. Attorneys’ Offices lead the Justice Department’s crime-fighting efforts in the state, coordinating with local prosecutors and federal and local law enforcement agencies under the Project Safe Neighborhoods initiative.

The awards were made by the three grant-making components of the Department of Justice—OJP, the COPS Office and the Office on Violence Against Women.

OJP awards, organized under specific grant programs, are available online at https://ojp.gov/funding/Explore/OJPAwardData.htm. A full list of COPS awards is available online at https://cops.usdoj.gov/grants. For OVW awards, visit https://www.justice.gov/ovw/awards.

About the Office of Justice Programs:

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.

About the Office of Community Oriented Policing Services:

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.

About the Office on Violence Against Women:

The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.

 

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