Eastern District of Michigan

A Detroit-area medical biller was sentenced today to 50 months in prison for  her role in a $7.3 million Medicare and Medicaid fraud scheme involving medical services that were billed to Medicare and Medicaid but not rendered as billed.

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios 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.

 

Dawn Bentley, 56, of Oakland County, Michigan, was sentenced by U.S. District Judge Sean F. Cox of the Eastern District of Michigan, who also ordered Bentley to pay $3,253,107 in restitution jointly and severally with her co-defendants. After a one-week jury trial in January 2017, Bentley was convicted of one count of conspiracy to commit health care fraud, wire fraud and mail fraud, as well as one count of mail fraud. Bentley was sentenced to 50 months in prison on each of the two counts, to run concurrently, followed by one year of supervised release.

 

According to the evidence presented at trial, from June 2014 through June 2015, Bentley knowingly submitted fraudulent bills on behalf of a co-conspirator physician for services she knew could not have been rendered, and for services she knew had not been rendered as billed. In exchange, Bentley was paid 6% of the total billings paid to the physician from Medicare, the evidence showed. Bentley’s largest client was Waseem Alam, who pleaded guilty to a $33 million Medicare fraud scheme in March 2016. Bentley billed $1.9 million of this fraud from June 2014 to June 2015, and was paid 6% of Alam’s receipts for the fraudulent billings, the evidence showed. Bentley’s company received over $100,000 from Alam’s practices between June 2014 and June 2015, the evidence showed.

 

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. Fraud Section Trial Attorneys Tom Tynan and Jessica Collins prosecuted the case.

 

The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 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 49-year old man from Quebec, Canada, was arrested this morning on charges of committing an act of violence at an airport, announced Acting United States Attorney Daniel Lemisch. Lemisch was joined in the announcement by David P. Gelios, Special Agent in Charge, Federal Bureau of Investigation.

 

Arrested was Amor M. Ftouhi. Mr. Ftouhi will be making an initial appearance in federal court in Flint today.

 

According to the criminal complaint, Mr. Ftouhi walked up to the victim, who is a lieutenant with the Bishop Airport Authority and was in full uniform, and stabbed the police officer in the neck with a knife. As he did so, Ftouhi referenced killings in Syria, Iraq, and Afghanistan, and yelled “Allahu Akbar.”

 

The charges carry a statutory maximum penalty of up to 20 years in prison. Any sentence would ultimately be imposed under the United States Sentence Guidelines according to the nature of the offense and the criminal background, if any, of the defendant.

 

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

David Wandell, of Monroe, owner and operator of Wandell’s Working Crew, pleaded guilty to an information charging him with one count of filing a false 2010 federal tax return, signed under penalties of perjury, Acting United States Attorney Daniel L. Lemisch announced today.

 

Mr. Lemisch was joined in the announcement by Manny Muriel, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division.

 

According to court records, Wandell filed a joint 2010 federal tax return with the IRS, signed under penalties of perjury, reporting only $175,000 in gross income and paying $4,400 in taxes, while materially underreporting his gross income from his Schedule “C” business, Wandell’s Working Crew. Wandell continued this pattern in 2011 and 2012, causing a total tax loss for all three years of over $186,303. As part of the plea agreement, Wandell has agreed to allow seized U.S. collectible coins and currency, valued at over $74,000, to be applied directly to the IRS in payment for his outstanding tax debt.

 

"The vast majority of Americans recognizes their legal responsibilities, properly report, and pay over their tax obligation,” stated Special Agent in Charge Muriel. “But for those who willfully cheat, you will get the full attention of IRS Criminal Investigation, which may lead to serious and costly consequence.”

 

Filing a false federal tax return, signed under penalties of perjury, carries a maximum penalty of 3 years imprisonment and a fine of $250,000.

 

Sentencing has been scheduled for October 24, 2017 at 1:30 p.m. in front of United States District Court Judge Robert H. Cleland.

 

Acting United States Attorney Lemisch thanked the IRS Criminal Investigation for the investigation of the case.

Sardar Ashrafkhan of Ypsilanti, Michigan, was sentenced today to 23 years in prison for participating in a conspiracy to distribute prescription pills, conspiracy to commit health care fraud, and money laundering, Acting U.S. Attorney Daniel Lemisch announced.

 

Ashrafkhan, also known as “Dr. Khan,” 59, was sentenced by U.S. District Judge Robert H. Cleland.

 

Lemisch was joined in the announcement by Timothy Plancon, Special Agent in Charge of the Drug Enforcement Administration; David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation; Robin Shoemaker, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Lamont Pugh, Special Agent in Charge of the Inspector General of the Department of Health and Human Services; and Manny Muriel, Special Agent in Charge of the Detroit office of the Internal Revenue Service, Criminal Investigation.

 

Sardar Ashrafkhan was found guilty, along with two co-defendant doctors, after a seven week jury trial. Ashrafkhan was convicted on felony counts of conspiracy to illegally distribute prescription drugs, conspiracy to commit health care fraud, and two counts of money laundering. The convictions arose from the operation of the defendant’s fraudulent medical practice known as Compassionate Doctors. The medical practice purported to be a visiting physician’s practice, but was actually a scheme that involved patient marketers bringing paid “patients” to residences to obtain fraudulent prescriptions for controlled substances. Medicare was billed for medical examinations and tests that were not conducted properly or were not conducted at all. Marketers filled the controlled substance prescriptions at cooperating pharmacies and sold the drugs on the street market.

 

According to evidence submitted at trial and at sentencing, Ashrafkhan operated Compassionate and related health care corporations from 2006 until 2013.

 

Ashrafkhan was responsible for participating in illegally distributing over 200,000 dosage units of oxycodone (including Oxycontin) and opana, powerful Schedule II opiates. He was responsible for over 1 million dosage units of another opiate, hydrocodone (Vicodin, lortab), and over 3 million dosage units of controlled substances of all kinds. He was responsible for over $8 million in health care fraud.

 

Oxycontin, oxycodone, and hydrocodone are controlled substances that may be prescribed by a doctor only for a legitimate medical purpose. A doctor must act in good faith in prescribing these medications. These powerful and addictive drugs in the opioid class are easily abused, and can lead to addiction and eventual heroin use.

 

“More people die in America every year from prescription drug overdoses than from overdoses of all other drugs combined,” Lemisch said. “In addition, prescription drug addiction has led to resurgence in heroin use. Licensed professionals who participate in the diversion of prescription drugs to the street market are contributing to this epidemic, and we are focusing our enforcement efforts on stopping them.”

 

“Dishonest and unethical Doctors and Pharmacists who provide prescription drugs, especially Opioids, to individuals with no medical need are fueling a national crisis which has resulted in alarming levels of addiction, overdose deaths, and violence at the hands of criminal enterprises competing to flood our streets with illegal drugs,” said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. “To those prioritizing profit over their pledge to honestly service the health needs of the public, the message should be clear that the collective resources of local, state and federal law enforcement will expose your illegal activities and bring you to justice.”

 

“When you exploit every business principle to enrich your pocket with illegal proceeds,” stated Special Agent in Charge Manny Muriel, “IRS Criminal Investigation will use their financial expertise to shut you down.”

 

Ashrafkhan was one of 44 defendants named in a multi-count second superseding indictment unsealed in March of 2013. Six doctors and five pharmacists were convicted, either by guilty plea or at trial, and all received custodial sentences. The longest custodial sentence imposed on a pharmacist was 78 months, and the longest custodial sentence imposed on a doctor was 228 months. As the owner and manager of the fraudulent clinic, Sardar was the leader of the activity and obtained the largest share of the profits from this illegal activity.

 

Ashrafkhan is a citizen of Pakistan who came to the United States in approximately 1991 to study medicine. He no longer has legal status in the United States, and is subject to deportation after service of his sentence.

 

Acting United States Attorney Lemisch thanked the agents of the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals, the Internal Revenue Service Criminal Investigation, the U.S. Immigration and Custom’s Enforcement’s Department of Homeland Security Investigations, the Department of Health and Human Services Office of Inspector General, the Detroit Police Dept., Portsmouth, Ohio, Police Dept., Scioto County Sheriff’s Office, and the Detroit Violent Crimes Task Force and Michigan State Police for their successful investigation of the case.

 

 

A Detroit man was sentenced today to 15 months in prison after having pleaded guilty to false information and hoaxes by threating to blow up the funeral procession of a slain Detroit Police Department Sargent, announced Acting United States Attorney Daniel L. Lemisch.

 

Lemisch was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division.

 

Deshawn Maurice Lanton, 21, was sentenced by United States District Judge Sean Cox.

 

According to court records, Lanton wrote a threatening message to Channel 7’s Facebook live stream of the funeral of Detroit Police Department Sargent Kenneth Steil. Sargent Steil’s was murdered in the line of duty in September 2016. During the funeral procession at St. Joan of Arc Church in St. Clair Shores, Lanton wrote “Maybe I should drop a bomb on tha building to get rid of the rest of y’all” on the Facebook live page as hundreds of officers marched into the church to pay their respects to the fallen officer. Also at the church were Sargent Steil’s widow and two children. Other Facebook live viewers read Lanton’s post and contacted the police.

 

Lanton has several felony convictions, including crimes of violence and theft.

 

This case was investigated by the Federal Bureau of Investigation and the Detroit Police Department. The case was prosecuted by Assistant United States Attorneys Kevin M. Mulcahy and Hank Moon.

The collaboration of local, state, and federal law enforcement under the Detroit One program continued its aggressive pursuit of local street gangs by obtaining a 30- year sentence for Victor Vasquez, a/k/a “Vic,” a leader of the Latin Count street gang and a 20-year sentence for Michael Gardner, a/k/a "Sosa," a member of the Vice Lord street gang announced Acting United States Attorney Daniel L. Lemisch.

 

Lemisch was joined in the announcement by David Gelios, Special Agent in Charge of the Federal Bureau of Investigation (FBI), S. Robin Shoemaker, Special agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Steve Francis, Special Agent in charge of Homeland Security Investigations (HSI), and Detroit Police Chief James Craig whose departments led the collaborative investigation into these violent street gangs.

 

Over the past several years, FBI, ATF, HSI agents, Detroit Police detectives and officers, other law enforcement agents, the Wayne County Prosecutor’s Office, and the United States Attorney’s Office have worked collaboratively to bring to justice members of both of these gangs for their varied criminal misconduct, including murders, racketeering activity, armed robberies, drive-by-shootings, assaults with dangerous weapons and narcotics distribution.

 

On May 31, 2017, Victor Vasquez, 26, of Detroit, was sentenced to 30 years in federal prison on his conviction for Racketeer Influenced and Corrupt Organizations (RICO) conspiracy. As part of his plea to RICO conspiracy, Vasquez took responsibility for causing the death of Mustafa Al-Yasiry at the Big Apple Market in southwest Detroit on April 18, 2014. According to the indictment, several Latin Counts assaulted Al-Yasiry, at Vasquez’s direction, while another Latin Count came up from behind and shot and killed Al-Yasiry. Four other gang members have also pleaded guilty for their roles in this murder.

 

According to the racketeering indictment, the Latin Counts gang operates in southwest Detroit and the downriver communities of Lincoln Park and Ecorse. The indictment alleges that eleven defendants committed assaults, murder, selling illegal narcotics and stolen firearms, breaking and entering homes and businesses and robbery. The indictment alleges that the gang uses violence to stake out its “turf” and intimidate both rival gang members and the citizens of southwest Detroit.

 

On June 1, 2017, Michael Gardner, 21, of Detroit and Radcliff, Kentucky, was sentenced to 20 years in federal prison on his convictions for sex trafficking a minor (using force, fraud and coercion) and production of child pornography. Evidence produced during his trial in October 2016 showed that Gardner used violence to force a minor victim to engage in commercial sex acts. Gardner also published explicit photographs of the minor in the prostitution advertisements that he created. Moreover, Gardner used his status as a Vice Lord gang member to intimidate the minor to continue to engage in prostitution and to put her in fear of reporting the activity. These convictions are just one component of the federal government’s prosecution of the Vice Lords street gang, which has led to the arrests and convictions of over two dozen Vice Lords leaders and members over the last few years.

 

These investigations stem from the Detroit One initiative—a combined effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working collaboratively, local, state and federal law enforcement are striving to maximize their ability to identify and arrest the persons and groups initiating the violence in Detroit. Since Detroit One started in 2013, this effort has had led to significant indictments, convictions, and sentences against a number of street gangs who are responsible for much of the violent crime in Detroit, including members of the Latin Counts, Vice Lords, and many others. The current convictions and sentences are a tangible and significant result of this joint effort.

 

Victor Vasquez was prosecuted by Assistant United States Attorneys Matthew Roth, Andrea Hutting, and Louis Crisostomo. Michael Gardner was prosecuted by Sara Woodward and Benjamin Coats.

A former Detroit Public Schools principal was sentenced to 24 months in federal prison and was ordered to pay restitution to the Detroit Public Schools in the amount of $45,775, as a result of having been convicted by a federal jury in an illegal bribery and kickback scheme, announced Acting United States Attorney Daniel L. Lemisch.

 

Joining Lemisch in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Manny Muriel, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.

 

Josette Buendia, 51, of Garden City, Michigan, the principal at Bennett Elementary School, was found guilty on all three charges of conspiracy to commit bribery and bribery charges, after a five-day jury trial before U.S. District Judge George Caram Steeh.

 

According to the evidence presented at trial, Buendia conspired with Norman Shy, 75, owner of Allstate Sales, a vendor of school supplies. From November 2011 through January 2015, Buendia knowingly certified and submitted fraudulent invoices to DPS, causing DPS to pay Shy for materials that the school did not receive, or that the school only received a portion of the materials. Invoiced supplies included supplemental teaching materials and raised line paper. In exchange, Shy paid bribes and kickbacks to Buendia in the form of gift cards and cash, using a portion of the payments he received from DPS from the fraudulent invoices. The bribes and kickback Buendia received totaled approximately $46,000.

 

"Following years of investigation, the FBI’s Detroit Area Public Corruption Task Force was able to expose and end a disturbing culture of corrupt activity involving 13 Detroit Public School Principals to include an Assistant Superintendent, said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. “These principals, including an Assistant Superintendent, used their positions as educators and leaders to enrich themselves at the expense of their students and the Detroit Public Schools system. Today’s sentencing of Principal Josette Buendia, the last in this investigation, should provide a sense of closure for the parents, students and the honest and dedicated DPS employees and underscores this community’s commitment to integrity in the operation of our schools”.

 

Manny Muriel, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation stated, “No matter what your position, it is unacceptable to help yourself to other people’s money and violate their trust. If you commit a crime, status as an educator or leader will not protect you from federal prosecution. Today's action demonstrates our collective efforts to enforce the law and ensure public trust.”

 

This case was investigated by agents of the FBI and IRS-CI. This case is being prosecuted by Assistant United States Attorneys J. Michael Buckley and Frances Carlson.

 

The FBI Detroit Area Corruption Task Force (DACTF) is led by the FBI Detroit Field Office, and consists of Special Agents and law enforcement officers with the FBI Detroit; the Detroit Police Department; the Michigan State Police; the Michigan Attorney General’s Office; the Internal Revenue Service – Criminal Investigation Division; the U.S. Department of Housing and Urban Development–Office of Inspector General; the U.S. Environmental Protection Agency–Office of Inspector General; the U.S. Department of Transportation–Office of Inspector General; the U.S. Department of Homeland Security–Office of Inspector General; the U.S. Department of Education–Office of Inspector General; and the U.S. Department of Labor–Office of Inspector General, Office of Labor Racketeering and Fraud Investigations

A resident of Ferndale, Michigan, was convicted by a jury last month on numerous counts of conspiracy, mail fraud, aggravated identity theft, and engaging in illegal monetary transactions, Acting U.S. Attorney Daniel L. Lemisch announced today.

 

Joining Lemisch in the announcement was Manny Muriel, Special Agent in Charge of the Detroit Office of the Internal Revenue Service – Criminal Investigation.

 

Durand L. Micheau, aka Durand Micheau-El and Gamba Mwenye El, 47, was convicted following a one-week trial conducted before U.S. District Judge Judith Levy. Micheau is scheduled to be sentenced on October 11.

 

At an earlier trial, Micheau’s wife and two brothers-in-law, Sharon Gandy-Micheau, Anthony Gandy, and Christopher Gandy, were convicted by a jury on the same charges. Sharon is scheduled to be sentenced on August 28, and Anthony and Christopher, her brothers, are scheduled to be sentenced on August 21.

 

The evidence presented at the trials established that the defendants participated in a scheme to defraud the federal government that centered on the filing of over 20 fraudulent Forms 1041, U.S. Income Tax Returns for Estates and Trusts. The returns requested over $1.4 million in refunds based on tax withholdings that never occurred. The returns resulted in the IRS’s mailing 14 income tax refund checks to the defendants that were payable to the trusts and totaled $940,000. To facilitate the scheme, the defendants obtained employer identification numbers (EINs) for the trusts from the IRS, opened post office boxes, and opened bank accounts in the names of the trusts. The trusts did not exist. The U.S. Treasury refund checks were either deposited into the bank accounts, followed shortly thereafter by large cash withdrawals, or cashed at local check-cashing stores.

 

In addition, the scheme used the names and identification information of a number of individuals whose purses or wallets had been lost or stolen, and it depended on the assistance of some of the defendants’ friends.

 

“These defendants attempted to steal taxpayer money, and they did so by using the identities of innocent victims,” Lemisch said. “This case should signal the ability of IRS investigators to detect fraud and bring offenders to justice.”

 

IRS-Criminal Investigation Special Agent in Charge Manny Muriel said, “Investigating refund fraud and identity theft remains a priority for IRS Criminal Investigation. Today’s guilty verdicts should send a clear message to would-be criminals that IRS – Criminal Investigation will continue to pursue those who prey on innocent victims and steal from the American tax system.”

 

The case was investigated by agents of the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant U.S. Attorneys Stephen Hiyama and Ross MacKenzie, with the assistance of paralegal Carol Oliver.

Two elected officials pleaded guilty today on charges of demanding and taking bribes in exchange for their official acts in connection with a municipal contract, Acting United States Attorney Daniel Lemisch announced.

 

Lemisch was joined in the announcement by FBI Special Agent in Charge David P. Gelios and Manny J. Muriel, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Detroit Field Office.

 

Pleading guilty were former Chesterfield Township Supervisor Michael Lovelock, 57, of New Baltimore, and former Macomb Township Trustee Clifford Freitas, 43, of Macomb Township.

 

According to court records Lovelock, from approximately 2010 through 2016, demanded and accepted money from a municipal vendor in exchange for using his official position as Chesterfield Supervisor to (1) secure an extension of a contract the vendor had with the township, (2) put past due accounts of the vendor on the Chesterfield tax rolls so as to assist the vendor in getting paid by township residents, (3) obtain payment from Macomb County for the vendor for its work on flood damage that occurred in August 2014; and (4) provide a favorable reference for the vendor for other municipalities and so that Lovelock would not speak negatively about the vendor. In total, Lovelock accepted over $30,000 in cash from the vendor’s representative. In addition, Lovelock accepted two other bribe payments totaling $4,000 in cash from an undercover agent of the FBI and an individual cooperating in the investigation.

 

Clifford Freitas pleaded guilty to demanding and accepting money in exchange for his official acts as a Macomb Township Trustee. According to court records, Freitas demanded and accepted money from a municipal vendor in exchange for using his official position as a Trustee to get the vendor a municipal contract and to secure favorable terms for the company. In July 2015, Macomb Township put out a request for proposal for a municipal contract. Soon thereafter, Freitas approached a representative of a prospective vendor, and Freitas demanded money in return for Freitas’ support as a Trustee. Freitas agreed to accept $7,500 from the vendor in return for his assistance in getting the contract. Through his position as a Trustee, Freitas obtained sensitive bid information on the municipal contract in order to help the vendor, telling the vendor what bid was needed to beat out competing contractors. After the vendor was awarded the contract by Macomb Township, Freitas demanded an additional $35,000 from the company representative for his additional assistance as a public official relating to the contract.

 

Each face a statutory maximum penalty of ten years in prison and a fine of up to $250,000. Sentencing has been set for October 5, 2017 at 1:30 pm in Port Huron

 

This investigation is being conducted by the FBI Detroit Area Corruption Task Force, a multiagency task force led by the FBI Detroit Division and comprised of the Internal Revenue Service – Criminal Investigation Division, Michigan State Police, Michigan Attorney General’s Office, and several other local and federal law enforcement agencies. It is being prosecuted by Assistant United States Attorneys R. Michael Bullotta and David A. Gardey.

The former CEO of garbage hauler Rizzo Environmental Services (RES), Charles B. “Chuck” Rizzo, 46, of Bloomfield Hills, was indicted today on five counts of bribery and three counts of conspiracy to commit bribery, in connection with garbage contracts in Clinton, Macomb, and Chesterfield townships, Acting United States Attorney Daniel L. Lemisch announced.

 

Lemisch was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.

 

Also charged with bribery is towing company owner Gasper Fiore, 56, of Grosse Pointe Shores. The superseding indictment charges Fiore and former Clinton Township trustee Dean Reynolds, 50, of Clinton Township, with multiple counts of bribery and conspiring to commit bribery in order to secure a towing contract with Clinton Township sought by Fiore. In March 2016, Fiore paid a $4,000 cash bribe to Reynolds, and then another $3,000 in cash to Reynolds in May 2016. The bribes were paid by Fiore to Reynolds through Charles B. Rizzo.

 

The superseding indictment also charges Charles B. Rizzo and Fiore, as well as Rizzo’s father, Charles P. Rizzo, 70, of New Baltimore, and Derrick Hicks, 47, of Bloomfield Hills, with conspiracy to commit mail and wire fraud. In addition, Charles P. Rizzo is charged with seven counts of mail and wire fraud, and his son, Charles B. Rizzo, is charged with twelve counts of mail and wire fraud. The fraud charges are based on the defendants’ conspiracy involving at least ten different schemes to steal money from RES between 2013 and 2016, a time when the majority owner of RES was a New York based private equity firm. At the time, Charles B. Rizzo, Charles P. Rizzo, Fiore, Hicks, and others schemed to steal hundreds of thousands of dollars from RES using a fake legal settlement agreement, fraudulent consulting deals, cash kickbacks, shell companies, and the stealing of money to pay for part of the construction costs of Charles B. Rizzo’s Bloomfield Township mansion. Charles B. Rizzo and other conspirators then used some of the stolen money to pay bribes to public officials in order to maintain and secure additional municipal garbage contracts. In conducting the embezzlement scheme, Charles B. Rizzo referred to the money embezzled and stolen from RES as “OPM”—“other people’s money.” The indictment contains forfeiture provisions regarding more than $4 million that has thus far been seized by the government in the investigation, as well as seeking the forfeiture of the proceeds of the sale of the Rizzos’ minority interest in RES.

 

The superseding indictment also adds new bribery charges against Reynolds in connection with another municipality. indictment alleges that Reynolds conspired to commit bribery with former New Haven trustee Brett Harris, 57, of New Haven. According to the indictment, Reynolds introduced Harris to an individual who, unbeknownst to Reynolds and Harris, was an undercover federal agent. Reynolds introduced Harris as a politician willing to take bribes. undercover agent proceeded to pay Harris $9,000 in cash bribes in return for Harris’ promise to help secure a garbage contract with New Haven.

 

Furthermore, the superseding indictment charges Reynolds with accepting multiple bribes from engineering contractor, Paulin Modi. In this regard, Reynolds took an $8,000 bribe from Modi in 2009 and another $8,000 bribe from Modi in 2013 in connection with securing the engineering contract for Modi for Clinton Township.

 

Each bribery charge carries a maximum sentence of 10 years imprisonment and a fine of $250,000. of the mail and wire fraud counts carry a maximum sentence of 20 years imprisonment and a fine of $250,000. The bribery conspiracy counts carry a maximum sentence of 5 years imprisonment and a fine of $250,000.

Acting United States Attorney Lemisch said: “This indictment demonstrates our commitment to bring to justice all participants in bribery schemes, including both the corrupt public officials and the bribe payers seeking to profit from public contracts. Our citizens are entitled to decisions based on the best interests of the public, not the best interests of politicians who accept bribes and bribe-paying contractors.”

 

"The public understandably is skeptical when public officials and municipal contractors in southeast Michigan conspire with one another to line their own pockets and illegally scheme to obtain advantages over their competitors," said Special Agent in Charge David P. Gelios, Detroit Division of the FBI. "Today's indictments reflect the FBI's continued resolve to root out public corruption and to work with honest community leaders to restore the public's trust in their government officials and institutions. Unfortunately, though, corrupt activity such as this continues. Until that is no longer the case, I would urge anyone who has information about this case or other allegations of corruption to call the FBI Public Corruption Task Force at (313) 965-2323."

 

“Bribery regardless of how you disguise it, is illegal”, stated Special Agent in Charge Manny Muriel for IRS Criminal Investigation. “Parties who profit and those who pay the bribe will be charged and held accountable for breaking the law. All Americans have a duty to pay their fair share in taxes. IRS – Criminal investigation helps to ensure that all Americans including public officials and contractors, are held to the same standards.”

 

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 and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey 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

 

An engineering contractor, Paulin Modi, 48, of Troy, was charged today in an information with one count of conspiracy to bribe a public official of Washington Township in connection with public contracts, Acting United States Attorney Daniel L. Lemisch announced.

 

Lemisch was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.

 

The information alleges that, in May of 2014, Modi paid a $1,000 cash bribe to an official with Washington Township with respect to Modi’s contract. It also alleges that between June and October of 2014, Modi helped facilitate a $2,000 cash bribe by another contractor.

 

The United States Attorney’s Office and the FBI wish to acknowledge the extraordinary assistance of Washington Township Supervisor Daniel O’Leary, who brought the criminal conduct to the attention of federal law enforcement and has been a valuable asset to the investigation since its inception.

 

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 and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and R. Michael Bullotta.

 

The charge carries a maximum sentence of 5 years’ imprisonment and a fine of $250,000

 

An information 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

 

Three individuals were convicted following a five-day jury trial in Ann Arbor on charges relating to identity theft, Acting United States Attorney Daniel L. Lemisch announced today.

 

Lemisch was joined in the announcement by Special Agent in Charge James Vanderberg, Department of Labor - Office of Inspector General, and Wanda Stokes, Director, Michigan Talent Investment Agency, Unemployment Insurance.

 

Convicted were Kenneth Dixon, Nakita Washington, and Jamela Washington, all from Warren, Michigan. The defendants were charged with use of counterfeit access devices, aggravated identity theft, theft of government money, and conspiracy to commit those offenses.

 

Evidence presented at trial established that between October 2009 through April 2012, the defendants systematically engaged in a conspiracy to obtain the personal identification information of unsuspecting victims, and then used that information to submit fraudulent on-line claims for unemployment compensation benefits. Over 100 individuals were victimized.

 

“The guilty verdicts of Kenneth Dixon, Jamela Washington, and Nakita Washington are the culmination of an extensive investigation into a conspiracy that victimized individuals by stealing their identities and defrauded the Michigan Unemployment Insurance Agency of over $400,000”, stated James Vanderberg, Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General. “We will continue to work with our law enforcement partners to safeguard the Unemployment Insurance Program.”

 

Sentencing for all three has been set for September 19, 2017. Each face a statutory maximum penalty of ten years in federal prison.

 

The case was investigated by special agents of the Department of Labor, Office of Inspector General with the assistance of the State of Michigan Unemployment Insurance Agency. The case was prosecuted by Assistant U.S. Attorney C. Barrington Wilkins

 

The former program director of Priority: My Education, a supplemental educational service provider, was sentenced to 37 months in federal prison after previously pleading guilty to federal program fraud, Acting United States Attorney Daniel Lemisch announced today.

 

Joining Lemisch in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Bernadette Kakooza, Inspector General of the Detroit Public Schools.

 

TheodoreThomas Pride, III, 38 of Detroit was sentenced by United States District Judge Bernard A. Friedman.

 

According to court records, Pride obtained at least $684,644 from Detroit Public Schools by submitting fraudulent invoices for tutorial services that DPS students never received. Pride’s scheme ran from 2011-2012, while he served as the resident agent and program director of Priority: My Education, a company approved by the State of Michigan to provide supplemental educational services to eligible students.

 

This case was investigated by agents of the FBI and the Office of Inspector General for the Detroit Public Schools. This case was prosecuted by Assistant United States Attorney Dawn N. Ison.

 

The FBI Detroit Area Corruption Task Force (DACTF) is led by the FBI Detroit Field Office, and consists of Special Agents and law enforcement officers with the FBI Detroit; the Detroit Police Department; the Michigan State Police; the Michigan Attorney General’s Office; the Internal Revenue Service – Criminal Investigation Division; the U.S. Department of Housing and Urban Development–Office of Inspector General; the U.S. Environmental Protection Agency–Office of Inspector General; the U.S. Department of Transportation–Office of Inspector General; the U.S. Department of Homeland Security–Office of Inspector General; the U.S. Department of Education–Office of Inspector General; and the U.S. Department of Labor–Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.

 

A Farmington Hills, Michigan, doctor was sentenced yesterday to 19 years in prison for participating in a conspiracy to distribute prescription pills and conspiracy to commit health care fraud, Acting U.S. Attorney Daniel Lemisch announced.

Adelfo Pamatmat, 71, was sentenced by U.S. District Judge Robert H. Cleland.

Dr. Pamatmat was found guilty, along with two co-defendants, after a seven-week jury trial. Dr. Pamatmat was convicted on two felony counts, conspiracy to illegally distribute prescription drugs and conspiracy to commit health care fraud. The convictions arose from the operation of a fraudulent medical practice known as Compassionate Doctors. The medical practice purported to be a visiting physician’s practice, but was actually a scheme that involved patient marketers bringing paid “patients” to residences to obtain fraudulent prescriptions for controlled substances. Medicare would be billed for medical examinations and tests that were not conducted properly or were not conducted at all. The marketers would fill the controlled substance prescriptions at cooperating pharmacies and sell the drugs on the street market.

According to evidence submitted at trial and at sentencing, Dr. Pamatmat was employed at Compassionate from 2007 until 2009. He then continued his illegal behavior in cooperation with other conspirators until he was arrested in 2013. While on bond, he was ordered not to prescribe controlled substances. Evidence submitted in connection with sentencing showed that he continued to prescribe controlled substances, in violation of conditions of bond, in 2014 and 2015.

Dr. Pamatmat was personally responsible for illegally prescribing over 200,000 dosage units of oxycodone (including Oxycontin) and opana, powerful Schedule II opiates. He illegally prescribed over 1 million dosage units of another opiate, hydrocodone (Vicodin, lortab), and over 3 million dosage units of controlled substances of all kinds. He was responsible for over $4 million in health care fraud.

Oxycodone, and hydrocodone are controlled substances that may be prescribed by a doctor only for a legitimate medical purpose. A doctor must act in good faith in prescribing these medications. These powerful and addictive drugs in the opioid class are easily abused, and can lead to addiction and eventual heroin use.

 

“More people die in America every year from prescription drug overdoses than from overdoses of all other drugs combined,” Lemisch said. “In addition, prescription drug addiction has led to resurgence in heroin use. Licensed professionals who participate in the diversion of prescription drugs to the street market are contributing to this epidemic, and we are focusing our enforcement efforts on stopping them.”

 

Dr. Pamatmat was one of 44 defendants named in a multi-count second superseding indictment unsealed in March of 2013. Five other doctors and five pharmacists were convicted, either by guilty plea or at trial.

 

Dr. Pamatmat has already surrendered his federal DEA license to prescribe controlled substances, and will face state action against his medical license as a result of his convictions.

 

The investigation in this case was handled by the Drug Enforcement Administration, the Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and the Department of Treasury Internal Revenue Service.

A leader of the Band Crew street gang was sentenced to nearly 20 years in prison for his role in gang-related attempted murders, robberies, and shootings. An associate of the Band Crew street gang was also sentenced yesterday to nearly seven years in prison for his role in the gang’s criminal activities. Corey Deandre Mapp, a/k/a Lil Corey, 23, and Mario Perkins, a/k/a Rio, both of Detroit, were sentenced following their guilty pleas to RICO conspiracy, assault with a dangerous weapon in aid of racketeering, and use and carry of a firearm during and in relation to a crime of violence. Mapp and Perkins both pleaded guilty in late 2016, before Chief U.S. District Judge Denise Page Hood of the Eastern District of Michigan.

 

Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division, and Chief James Craig of the Detroit Police Department made the announcement.

 

“These convictions and sentences are particularly important since Mr. Mapp was a leader of the gang, participated in shootings, and encouraged this violence to occur, which included Mr. Perkins participation in gang-related shootings and violence” said Acting U.S. Attorney Lemisch. “We believe these sentences send a strong message of deterrence to those who may want to pursue the gang lifestyle.”

 

“These sentences are the culmination of countless hours of dedicated work by ATF agents and our law enforcement partners,” said Special Agent in Charge Shoemaker. “ATF will continue to aggressively target and dismantle criminal enterprises threatening the safety of Detroit’s citizens.”

 

According to court documents, Band Crew was an association comprised of smaller gangs, including Constantly Making Hundreds (CMH), Young N Crispy (YNC), Pushit (or Pusha) Boy Family (PBF), and Family Over Everything Love is Forever (FOE Life). Band Crew operated in northwest Detroit, and the gang’s members claimed this area as their territory by “tagging” buildings with gang-related graffiti, including markings such as “#22 BandCrew,” “BAND CREW,” “22 BAND CREW,” “YNCMH” and “PBF.” Band Crew members and associates worked to defend their territory, to promote and maintain the status and reputation of the gang, and to engage in or threaten violence in retaliation for perceived wrongs. Band Crew’s specific base of operation in northwest Detroit was in the area in and around Seven Mile Road, with Southfield Freeway to the west, West McNichols Road to the south, Eight Mile Road to the north, and Greenfield Road to the east. The gang members claimed this area as “Band Crew Territory.”

 

Mapp, Perkins, and their co-defendants were responsible for a multitude of crimes that took place in and around Northwest Detroit. Mapp and Perkins, according to plea agreements and court documents, directly participated or encouraged acts of assault with intent to murder, home invasions, aggravated assaults, shootings in public places, drug dealing, and robberies. Mapp’s criminal conduct spanned the duration from Band Crew’s inception until he and his co-defendants were arrested in the fall of 2015.

 

All defendants charged in the indictment have been convicted. In addition to Mapp and Perkins, six other members, leaders, and associates of the Band Crew, all of Detroit, have pleaded guilty to charges related to racketeering, assault a dangerous weapon in aid of racketeering, or other weapons offenses. The remaining Band Crew members are scheduled to be sentenced over the next three months.

 

A very important component to the federal prosecution was earlier successful state prosecutions by the Wayne County Prosecutor’s Office of a number of Band Crew members for specific violent state felony offenses that served as a foundation to the federal Racketeering Conspiracy.

 

The arrests and convictions in this case are, in part, the result of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. Through the lead efforts of the Comprehensive Violence Reduction Partnership Task Force, which consists of representatives of the ATF, Detroit Police Department, Michigan State Police, Michigan Department of Corrections and FBI, law enforcement authorities linked various acts of violence in Detroit to the Band Crew street gang, and identified the leaders and key members of the gang, who now have been held accountable. This prosecution was also part of a larger coordinated effort to address ongoing gang violence in Northwest Detroit. During the time of the Band Crew investigation, federal law enforcement and the U.S. Attorney’s Office also investigated, prosecuted, and convicted members of the RTM street gang, chief rival to the Band Crew.

 

The ATF and Detroit Police Department investigated the case. Assistant U.S. Attorney John N. O’Brien of the Eastern District of Michigan and Assistant U.S. Attorney Jeremy R. Jehangiri of the District of South Dakota prosecuted the case.

Detroit, MI - The collaboration of local, state, and federal law enforcement under the Detroit One program has led to the indictment of five members of a northwest Detroit street gang, Young and Skantless or YNS, on various racketeering offenses in a federal superseding indictment unsealed today. The charges are the result of the Detroit One initiative, a collaborative effort between law enforcement and the community to reduce violent crime in Detroit.

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan; Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division; and Police Chief James E. Craig of Detroit made the announcement.

 

The indictment charges five YNS members with a variety of crimes including a murder, robberies that turned into murders, shootings, a home invasion, arson and narcotics distribution. Specifically:

 

• Corey Toney, 36, of Detroit, is charged with RICO conspiracy and possession with intent to distribute a controlled substance;

 

• Edward Tavorn, 30, of Detroit, is charged with RICO conspiracy and felon in possession of a firearm;

 

• Andre Chattam, 27, of Detroit, is charged with RICO conspiracy, murder in aid of racketeering and use and carry of a firearm during and in relation to a crime of violence causing death;

 

• Kevin Pearson, 25, of Detroit, is charged with RICO conspiracy, murder in aid of racketeering and use and carry of a firearm during and in relation to a crime of violence causing death; and

 

• Sontez Wells, 23, of Detroit, is charged with murder in aid of racketeering, and use and carry of a firearm during and in relation to a crime of violence causing death.

 

According to the indictment, the defendants were members and associates of YNS, a criminal organization that operates in northwest Detroit, specifically the Brightmoor neighborhood. The indictment alleges that YNS purposefully developed a reputation for ruthless violence in order to facilitate the successful commission of crimes by YNS members and associates. The further indictment alleges that the gang has become known as the most dangerous group in Brightmoor and one of the most dangerous in the city of Detroit by engaging in various violent acts including: seeking to intimidate, injure and kill rival drug dealers to eliminate competition; attempting to instill fear in the community in order to discourage cooperation with police and witnesses from reporting YNS-related crime; and posting numerous intimidating photographs and videos to social media.

 

Through collaborative effort, law enforcement has been able to identify some of the most violent members of this gang and charge them in both state and federal court. Detroit One is a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working collaboratively, local, state, and federal law enforcement is striving to maximize its ability to identify and arrest the persons and groups initiating the violence in Detroit. This indictment is the latest in a string of indictments or informations over the last four years involving violent street gangs in the city of Detroit, including:

 

- 18 members of the Seven Mile Blood street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;

 

- Nine members of the Bounty Hunter Bloods street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;

 

- 14 members of the Rollin’ 60s Crips street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;

 

- 13 members of the Latin Counts street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;

 

- 14 members of the Phantom Outlaw Motorcycle Club / Vice Lords street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;

 

- Four Vice Lord members in state court for armed robbery and a Vice Lord leader charged under the federal street gang statute for his role in that armed robbery;

 

- Nine Vice Lords members for racketeering charges stemming from the shooting of four individuals at their family residence on Detroit’s northwest side;

 

- Three members of the Band Crew street gang charged under the state of Michigan gang felony statute for violent acts in furtherance of their gang activities and eight members of the Band Crew for federal racketeering conspiracy and other violent acts in furtherance of racketeering;

 

- 10 members of the RTM street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;

 

- Four members of the Band Gang street gang charged under the state of Michigan gang felony statute for conspiracy to commit murder and assaults with intent to commit murder and 11 members/associates of Bang Gang in federal court for access device fraud, aggravated identity theft, firearms, and obstruction of justice;

 

- Three members of the A1Killers street gang for federal narcotics offenses;

 

- 11 members of the 6Mile Chedda Grove street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;

 

- 24 individuals on drug conspiracy charges for their use of sixteen different houses in the east side Ravendale neighborhood of Detroit, many of them abandoned homes, for distributing heroin, cocaine, and crack cocaine between 2013 – 2015; and

 

- 14 individuals on criminal enterprise, drug distribution, or weapons offense for drug distribution in the west side Warrendale neighborhood of Detroit.

 

These charges are just some more of the tangible and significant results of this joint effort. Most significantly, Detroit has seen a reduction in the overall violent crime rate every year since the Detroit One collaboration began in 2013.

 

The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.

 

This case is being investigated by the ATF’s CVRP Task Force (Comprehensive Violence Reduction Partnership), consisting of representatives of the ATF, Detroit Police Department, Michigan State Police and Michigan Department of Corrections,

The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Eastern District of Michigan.

 

The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.

 

This case is being investigated by the ATF’s CVRP Task Force (Comprehensive Violence Reduction Partnership), consisting of representatives of the ATF, Detroit Police Department, Michigan State Police and Michigan Department of Corrections. The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Eastern District of Michigan.

Five members of a northwest Detroit street gang, Young and Skantless or YNS, have been indicted on various racketeering offenses in a federal superseding indictment unsealed today.　 The charges are the result of the Detroit One initiative, a collaborative effort between law enforcement and the community to reduce violent crime in Detroit.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan; Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division; and Police Chief James E. Craig of Detroit made the announcement.

The indictment charges five YNS members with a variety of crimes including a murder, robberies that turned into murders, shootings, a home invasion, arson and narcotics distribution.　 Specifically:

• Corey Toney, 36, of Detroit, is charged with RICO conspiracy and possession with intent to distribute a controlled substance;
• Edward Tavorn, 30, of Detroit, is charged with RICO conspiracy and felon in possession of a firearm;
• Andre Chattam, 27, of Detroit, is charged with RICO conspiracy, murder in aid of racketeering, and use and carry of a firearm during and in relation to a crime of violence causing death;
• Kevin Pearson, 25, of Detroit, is charged with RICO conspiracy, murder in aid of racketeering, and use and carry of a firearm during and in relation to a crime of violence causing death; and
• Sontez Wells, 23, of Detroit, is charged with murder in aid of racketeering, and use and carry of a firearm during and in relation to a crime of violence causing death.

According to the facts alleged in the indictment, the defendants were members and associates of YNS, a criminal organization that operates in northwest Detroit, specifically the Brightmoor neighborhood.　 The indictment alleges that YNS purposefully developed a reputation for ruthless violence in order to facilitate the successful commission of crimes by YNS members and associates.　 The indictment further alleges that the gang has become known as the most dangerous group in Brightmoor and one of the most dangerous in the city of Detroit by engaging in various violent acts including: seeking to intimidate, injure and kill rival drug dealers to eliminate competition; attempting to instill fear in the community in order to discourage cooperation with police and witnesses from reporting YNS-related crime; and posting numerous intimidating photographs and videos to social media.

By working collaboratively under the Detroit One program, local, state and federal law enforcement is striving to maximize its ability to identify and arrest the persons and groups initiating the violence in Detroit.　 Detroit has seen a reduction in the overall violent crime rate every year since the Detroit One collaboration began in 2013.

The charges and allegations contained in the indictment are merely accusations.　 The defendants are presumed innocent until and unless proven guilty.

This case is being investigated by the ATF’s CVRP Task Force (Comprehensive Violence Reduction Partnership), consisting of representatives of the ATF, Detroit Police Department, Michigan State Police and Michigan Department of Corrections.　 The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Eastern District of Michigan.

YNS Superseding Indictment

A third Detroit-area physician was convicted today for his role in a $17 million Medicare fraud scheme involving medically unnecessary physician visits.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios 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.

Gerald Daneshvar, M.D., 40, of West Bloomfield, Michigan, was convicted of one count of conspiracy to commit health care fraud after a jury trial lasting approximately two weeks. Daneshvar was a physician for Lake MI Mobile Doctors, a home visiting physician service based in Chicago, with an office in Southfield, Michigan, from 2012 to 2013. Daneshvar was also acquitted of two counts of health care fraud today.

The evidence at trial showed that Daneshvar visited patients who did not qualify for visiting physician services, and these visits were then billed to Medicare at the highest billing codes. For example, the evidence showed that Daneshvar billed Medicare for home visits that required complex, 40- or 60- minute examinations, but would instead rush through as many as 22 home visits per day, averaging about 15 minutes or less with each patient, so he could make more money. The evidence also showed that he ordered unnecessary tests, in order to receive larger bonuses.

In connection with this case, Leonard Van Gelder, M.D., 69, of Caledonia, Michigan, and Stephen Mason, M.D., 46, of Indianapolis, each pleaded guilty to one count of conspiracy to commit health care fraud in March 2017 and December 2016, respectively. As part of their guilty pleas, Van Gelder and Mason admitted to seeing patients who did not need their services and for whom bills were submitted to Medicare at the highest billing codes. Both Van Gelder and Mason testified at trial.

Lake MI Mobile Doctors billed Medicare approximately $17.1 million as a result of the scheme in which these doctors participated, the evidence showed.

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. Fraud Section Trial Attorneys Amy Markopoulos and Stephen Cincotta prosecuted the case.

The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 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.

Two members, including the top leader, of the Detroit branch of the Rollin 60s Crips street gang pleaded guilty yesterday to various racketeering and firearms offenses based on their roles in gang-related murders, shootings, and drug distribution. The guilty pleas are the result of the collaborative efforts of law enforcement and the community to reduce homicide and other violent crime under the Detroit One program, announced Acting U.S. Attorney Daniel L. Lemisch.

 

Joining in the announcement was S. Robin Shoemaker, Special Agent in Charge of the Detroit Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Chief James Craig of the Detroit Police Department.

 

According to the indictment, the Rollin’ 60s Crips is a national street gang founded in Los Angeles, California, in the mid-1970s. In 2008, Jerome Hamilton, who pleaded guilty yesterday, started a Detroit line of the Rollin 60s, which now boasts approximately 150 members and who operated primarily on the west side of Detroit in the vicinity of Seven Mile and Tracey. The Rollin 60s Detroit chapter is a violent organization responsible for numerous assaults, robberies, carjackings and the unlawful possession and trafficking of firearms and narcotics in and around the Detroit metropolitan area over the last nine years. The gang uses violence as a means of retribution for acts done by rival gang members, to intimidate witnesses, and as a means for individuals to maintain or advance their position within the gang.

 

The leader, Jerome Hamilton, 24, of Southfield, pleaded guilty to racketeering conspiracy and use of a firearm during and in relation to a crime of violence causing death. As part of the underlying racketeering activity, Hamilton took responsibility for the August 8, 2011 homicide of Kionte Atkins during a drive-by shooting and being involved in the distribution of marijuana as part of his membership with the Rollin 60s Crips. plea agreement calls for a sentence of 30 to 35 years in prison.

 

Another gang member, Roderek Perry, 22, of Detroit, also pleaded guilty to racketeering conspiracy, assault with a dangerous weapon in aid of racketeering, and use and carry of a firearm during and in relation to a crime of violence. According to his plea documents, Perry was a member of the Rollin 60s Crips from 2011 to 2016. Perry admitted to participating in the drive-by shooting of Kionte Atkins on August 8, 2011, as well as a June 20, 2012 attempted robbery that left Perry’s fellow gang member dead after Perry inadvertently killed him during the robbery. In addition, Perry sold narcotics to fund activities of the gang. Perry’s plea agreement calls for a sentence of 30 to 35 years in prison.

 

"Violence in our communities will not be tolerated and this investigation should serve as a warning to others threatening the safety of our citizens," said ATF Special Agent in Charge Robin Shoemaker. "ATF will continue to partner with our law enforcement partners to protect our neighborhoods from violent organized street gangs."

 

"Violent Gangs should have no place or acceptance in our communities. It should be clear from today's outcome that gang members cannot avoid responsibility for their crimes and law enforcement will not stop going after them,” said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI.

 

Hamilton and Perry are the tenth and eleventh members of the Rollin 60s Crips to plead guilty in this investigation. Other Rollin 60s Crips members have pleaded guilty to racketeering conspiracy for acts involving carjackings, armed robberies, firebombing, unarmed robberies, and distributing narcotics on behalf of the gang. Those members are:

 

- Darriyon Mills, 25, of Detroit, pleaded guilty to RICO conspiracy and using a firearm during and in relation to a crime of violence;

 

- Jonathan Barber, 25, of Detroit, pleaded guilty to RICO conspiracy;

 

- Deaires Foster, 23, of Irondale, Alabama, pleaded guilty to RICO conspiracy;

 

- Timothy Price, 27, of Detroit, pleaded guilty to RICO conspiracy;

 

- Sadeisha Johns, 32, of West Bloomfield, pleaded guilty to RICO conspiracy;

 

- Soumo Kennedy, 23, of Detroit, pleaded guilty to RICO conspiracy;

 

- Brandon Kennedy, 23, of Detroit, pleaded guilty to RICO conspiracy;

 

- Charles Anthony Smith, 32, of Windsor, Ontario, Canada, pleaded guilty to RICO conspiracy; and

 

- Tre Tigner, 23, of Detroit, pleaded guilty to RICO conspiracy.

 

Three other alleged members of the gang are scheduled to begin trial on July 11, 2017, before Chief Judge Denise Page Hood.

 

The case is being investigated by the ATF’s Comprehensive Violence Reduction Program, which includes representatives of the Detroit Police, Michigan State Police, and Michigan Department of Corrections, in coordination with the FBI Violent Crime Task Force, and Detroit Police Department. The case is being prosecuted by Assistant U.S. Attorneys Eaton Brown and Shane Cralle.

A 30-year-old Detroit man pleaded guilty today to a charge of buying a firearm through a straw purchaser, Acting United States Attorney Daniel L. Lemisch announced today.

 

Lemisch was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division.

 

Sebastian Gregerson pleaded guilty before United States District Judge Arthur J. Tarnow in Detroit.

 

 According to court records, on February 16, 2014, defendant Gregerson purchased a Glock 31 .357 caliber gun through a straw purchaser in Virginia. The defendant accompanied another individual to a gun show in Virginia where the individual purchased the gun for Gregerson. Gregerson gave cash to the individual to make the gun purchase and identified the gun he wanted the individual to purchase. At the time of the transaction, the individual completed a federal firearms form indicating that he was the buyer of the gun, when, in fact, Gregerson was the actual buyer. Gregerson was present during the transaction and took possession of the gun after the purchase. The gun was recovered from defendant Gregerson’s residence at the time of his arrest in July, 2016.

 

Defendant Gregerson previously pled guilty, on March 17, 2017, to possession of unregistered destructive devices based on his purchase, through an FBI employee acting in an undercover capacity (UCE), of grenade bodies containing high explosives, as well as grenade fuses. Those components constituted a combination of parts that were designed or intended for use in M67 fragmentation grenades and from which M67 fragmentation grenades could be readily assembled. The destructive devices were not registered to defendant Gregerson in the National Firearms Registration and Transfer Record.

 

According to the court records, Gregerson’s social media site, as well as conversations with an undercover FBI employee, indicated his support for the Islamic State of Iraq and Levant (ISIL), a designated foreign terrorist organization and statements relating to committing violent acts.

 

Gregerson was arrested on August 1, 2016, by FBI agents and remains in custody pending his sentencing which has been scheduled for June 30, 2017 in both cases. Gregerson faces a term of up to 10 years in federal prison for the straw purchase of the firearm.

The U.S. Attorney's Office for the Eastern District of Michigan has reached a settlement with Dayton Township in Tuscola County to ensure full access to township services for individuals with disabilities.

 

The agreement, under the Americans with Disabilities Act (ADA), resolves a complaint filed with the U.S. Attorney’s Office alleging that many township services were inaccessible to individuals with disabilities. The complaint, filed by a local resident, alleged that Dayton Township’s government offices were located in the private homes of its elected officials, and that because of physical barriers present in those homes, the government services provided in them were inaccessible to individuals with disabilities.

 

The settlement agreement requires Dayton Township to adopt an ADA policy, and to establish a mechanism to provide township services in an alternative location or in an alternate manner to ensure that all Dayton Township residents have access to township services.

 

“Access to public facilities and services are essential to meaningful participation in civic life, and individuals with disabilities are entitled to the opportunity to participate in local government programs, services, and activities on an equal basis with their neighbors,” said Acting U.S. Attorney Daniel L. Lemisch.

 

For more information on the ADA or today’s agreement with Dayton Township, visit www.ada.gov or call the United States Justice Department’s toll-free ADA Information line at (800) 514-0301 or (800) 514-0383 (TTY) or the U.S. Attorney’s Civil Rights hotline at (313) 226-9151.

Two Detroit doctors and one co-conspirator were charged in an indictment today for their alleged participation in a scheme to perform female genital mutilation (FGM) on minors, to transport these minors across state lines, and to obstruct justice.

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Acting Special Agent in Charge Steve Francis of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Detroit Field Office made the announcement.

 

Jumana Nagarwala, M.D., 44, of Northville, Michigan, Fakhruddin Attar, M.D., 53, and his wife, Farida Attar, 50, both of Livonia, Michigan, are charged with performing FGM on minor girls out of Fakrhuddin Attar’s medical office in Livonia, Michigan. According to the indictment, some of the minor victims allegedly traveled interstate to have Nagarwala perform the procedure. The indictment alleges that Nagarwala performed FGM on girls who were approximately six to eight years old. All three are also charged with a conspiracy to obstruct the federal investigation, and Nagarwala and Fakhruddin Attar are charged with giving false statements to a federal agent. This is believed to be the first case brought under 18 U.S.C. 116, which criminalizes FGM.

 

“Female Genital Mutilation has serious implications for the health and well-being of girls and women,” stated Acting United States Attorney Daniel Lemisch. “This brutal practice is conducted on girls for one reason, to control them as women. FGM will not be tolerated in the United States. The federal government is continuing this investigation to ensure those responsible are brought to justice.”

 

"Today's indictments represent the continued commitment of the FBI and our law enforcement partners to protect the most vulnerable of victims, our children, from those that would do them harm. The practice of Female Genital Mutilation (FGM) cannot be defended in any context and we will identify and bring those responsible for conducting or participating in this disturbing crime to justice", said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "I would urge anyone who has information about those involved in FGM or can assist with identifying victims to report it to the FBI or HSI. Information can be reported by calling 1-800-CALL-FBI or by sending an e-TIP to FBI.GOV/FGM".

 

"As the first federal indictment in the U.S., these charges will hopefully deal a critical blow to stamping out this inhumane practice in the United States and around the world," said Francis. "HSI and our partners are committed to the difficult but necessary work of supporting victims and bringing everyone involved in this practice to justice."

 

An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

 

The FBI’s Detroit Division and HSI investigated the case with support of the Criminal Division’s Fraud Section, the U.S. Attorney’s Office of the Eastern District of Michigan and the FBI’s International Human Rights Unit, Criminal Investigative Division. Deputy Chief Sara Woodward of the General Crimes Unit, Eastern District of Michigan and Fraud Section Assistant Chief Nick Surmacz and Trial Attorneys Amy Markopoulos and Malisa Dubal are prosecuting the case

A naturalized United States citizen, who was convicted overseas for having been a member of the Popular Front for the Liberation of Palestine (PFLP), which has been designated a Terrorist Organization by the United States government, and also was convicted for participation in two terrorist bombings, pleaded guilty today to having obtained her United States citizenship unlawfully, acting U.S. Attorney Daniel Lemisch announced.

 

Joining Lemisch in the announcement was Steve Francis, Special Agent in Charge of Immigration and Customs Enforcement, Homeland Security Investigations.

 

Entering the guilty plea was Rasmieh Yousef Odeh,69, a Chicago-area resident.

 

Acting U.S. Attorney Lemisch stated, “In 1969, the Popular Front for the Liberation of Palestine conducted two bombings in Jerusalem, Israel. One was at a Supersol supermarket, in which two individuals were killed and many more wounded. The second bombing was at the British Consulate. Defendant Odeh was arrested and charged with participation in the bombings, and in 1970 was convicted. She was sentenced to life imprisonment, but was released in 1979 after ten years’ imprisonment, as part of a prisoner exchange.”

 

Odeh obtained a United States immigrant visa in 1994 and has lived in the United States for the last 22 years. In 2004, she obtained United States citizenship. A

 

According to the plea agreement signed by Odeh and accepted by the court, Odeh admitted that she lied about her criminal history, by falsely denying that she ever had been arrested, charged with a crime, convicted, or imprisoned. Odeh admitted today that she had omitted her Israeli arrest, charge, conviction and imprisonment from her United States naturalization application even though she knew she was required to disclose them. Odeh also admitted that ’At the time she made the false statements, Defendant knew the statements were false, and that she made the false statements intentionally and not as a result of any mistake, Post-Traumatic Stress Disorder or any other psychological issue or condition, as she had previously claimed in court proceedings, or for any innocent reason. Odeh also admitted that at the time she made the false statements, she knew that it was unlawful for her to provide false information to the United States government in connection with her application for Immigrant Visa and her application for naturalization. Had Odeh revealed the truth about her criminal history, as she was required to by law, she never would have been granted an immigrant visa, admitted to the United States, allowed to live here for the last 22 years, or granted United States citizenship.

 

As a result of her conviction for having obtained naturalization unlawfully, Odeh will be stripped of her United States citizenship when she is sentenced by U.S. District Judge Gershwin A. Drain. Sentencing was set for August 17, 2017 at 2pm. As part of the plea agreement, Odeh agreed to a judicial order of removal, under which she will be deported to her nation of citizenship, Jordan, and will not be allowed to reenter the United States.

 

“The United States will never be a safe haven for individuals seeking to distance themselves from their pasts,” said Steve Francis, Special Agent in Charge for HSI Detroit. “When individuals lie on immigration documents, the system is severely undermined and the security of our nation is put at risk.”

 

The maximum sentence for the offense is ten years, of which Odeh already has served about five weeks. Under the terms of the plea agreement, Odeh will not face additional imprisonment but will be removed from the United States following sentencing.

 

Acting U.S. Attorney Lemisch commended Immigration and Customs Enforcement, Homeland Security Investigations, and particularly Special Agent Stephen A. Webber, for the outstanding investigation which led to Odeh’s conviction. The prosecution was conducted by Assistant U.S. Attorneys Jonathan Tukel and Michael C. Martin.

Crittenton Hospital Medical Center and the Crittenton Cancer Center, together with their current owners Ascension Michigan and Ascension Health, have agreed to pay $791,047 to resolve allegations that they violated the False Claims Act by billing for medically unnecessary laboratory testing for patients who had been referred to Crittenton by Dr. Farid Fata and physicians in his office. In an earlier unrelated criminal matter, Fata pleaded guilty to health care fraud, conspiracy to pay and receive kickbacks, and promotional money laundering, and was sentenced to a term of 45 years in prison.

 

False Claims Act allegations against Fata and Crittenton were brought to the government by a whistleblower, known as a relator, under the qui tam provisions of the False Claims Act. From September 2011 until August 7, 2013, Fata’s medical practice, Michigan Hematology-Oncology P.C., employed relator as an office administrator. Among other allegations, relator questioned the medical necessity of services that Crittenton and other hospital subsidiaries of Ascension Health had provided to patients treated by Fata.

 

Crittenton and Ascension voluntarily disclosed to the government the lack of medical necessity regarding the laboratory testing. Relator will receive $158,209.40 out of the $791,047 settlement for his role in filing the qui tam action.

 

This case was investigated jointly by the U.S. Attorney’s Office for the Eastern District of Michigan and the Department of Health and Human Services, Office of Inspector General.

Volkswagen AG (VW) was sentenced in federal court in Detroit today after pleading guilty on March 10, 2017, to three felony counts of: (1) conspiracy to defraud the United States, engage in wire fraud, and violate the Clean Air Act; (2) obstruction of justice; and (3) importation of merchandise by means of false statements. During the sentencing hearing, the court accepted the parties’ plea agreement, which requires VW to pay a $2.8 billion penalty stemming from the company’s decade-long scheme to sell diesel vehicles containing software designed to cheat on U.S. emissions tests.

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance and Special Agent in Charge David Gelios of the FBI’s Detroit Field Office made the announcement.

 

U.S. District Judge Sean F. Cox of the Eastern District of Michigan accepted the plea agreement, resulting in VW’s conviction on three felony charges. VW was convicted, first, of participating in a conspiracy to defraud the United States and its U.S. customers and to violate the Clean Air Act by lying and misleading the EPA and U.S. customers about whether certain VW, Audi and Porsche branded diesel vehicles complied with U.S. emissions standards. Moreover, the company used cheating software to circumvent the U.S. testing process, and concealed material facts about its cheating from U.S. regulators. Second, VW was convicted of obstruction of justice for destroying documents related to the scheme. And third, VW was convicted of importing these cars into the United States by means of false statements about the vehicles’ compliance with emissions limits.

 

As part of the plea agreement, VW will pay a $2.8 billion criminal penalty to the U.S. and fully cooperate in the government’s ongoing investigation and prosecution of individuals responsible for these crimes. The parties also announced that the government had selected Larry D. Thompson as an independent corporate compliance monitor who will oversee the company during its three-year term of probation. Thompson is a former Deputy U.S. Attorney General. His team includes experts in automotive regulatory compliance, as well as the corporate monitors for Deutsche Bank in the London Interbank Offered Rate (LIBOR) manipulation prosecution and Duke Energy in the coal ash environmental prosecution.

 

“The sentencing of Volkswagen marks a significant milestone in this historic case,” said Acting U.S. Attorney Lemisch. “Volkswagen has been punished for its scheme to defeat U.S. environmental standards and cheat U.S. consumers. This prosecution sends a strong message to Volkswagen and others that we take our environmental laws seriously and that federal prosecution awaits those who defraud the EPA.”

 

“The Criminal Division will continue to be vigilant in assuring that all companies – foreign and domestic – that choose to benefit from our valuable economy and consumers abide by our laws, said Acting Assistant Attorney General Blanco. “The sentencing of VW vindicates the rights of U.S. consumers who for over a decade were victims of the calculated corporate decisions of VW and its senior management to fraudulently employ a device intended to deceive U.S. consumers and to defeat our environmental laws.”

 

“With today's sentence, VW is being held fully accountable for its deception and fraud perpetrated against American consumers and the environment, as well as the deliberate obstruction of the criminal investigation into its wrongdoing,” said Deputy Assistant Attorney General Williams. “We also hope this sends a message around the world that those who violate American environmental laws will be vigorously investigated and prosecuted.”

 

“Today's strong sentence recognizes the egregious nature of VW’s violations, and VW’s attempt to gain an unfair competitive advantage over automakers that follow the law,” said Acting Assistant Administrator Starfield. “Vehicle emissions standards help protect clean air and ensure a level playing field for companies that play by the rules. When those standards are broken, violators can expect to be held accountable.”

 

“Americans expect corporations doing business in the United States to conduct their business honestly,” said Special Agent in Charge Gelios. “Today's sentencing sends a clear message that the FBI, along with its federal partners, will continue to hold corporations, like Volkswagen AG, accountable when they defraud consumers and violate federal laws.”

 

Along with the January 2017 plea agreement, the United States also announced separate civil resolutions of environmental, customs and financial claims, in which VW agreed to pay an additional $1.5 billion to settle EPA’s claim for civil penalties in connection with the importation and sale of these cars, as well as U.S. Customs and Border Protection (CBP) claims for customs fraud. In addition, that agreement requires injunctive relief to prevent future violations. The agreements also resolved alleged violations of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).

 

The FBI and EPA investigated the case. This case is being prosecuted by members of the Department of Justice’s Criminal Division, Fraud Section, including: Chief of the Securities and Financial Fraud Unit Benjamin D. Singer, as well as Trial Attorneys David Fuhr, Alison Anderson, Christopher Fenton and Gary Winters. Also prosecuting the case are members of the Department of Justice’s Environment and Natural Resources Division, Environmental Crimes Section, including: Senior Trial Attorney Jennifer Blackwell. Additionally, the case is being prosecuted by members of the U.S. Attorney’s Office for the Eastern District of Michigan, including Criminal Division Chief Mark Chutkow, Economic Crimes Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.

 

Volkswagen AG (VW) was sentenced in federal court in Detroit today after pleading guilty on March 10, 2017, to three felony counts of: (1) conspiracy to defraud the United States, engage in wire fraud, and violate the Clean Air Act; (2) obstruction of justice; and (3) importation of merchandise by means of false statements. During the sentencing hearing, the court accepted the parties’ plea agreement, which requires VW to pay a $2.8 billion penalty stemming from the company’s decade-long scheme to sell diesel vehicles containing software designed to cheat on U.S. emissions tests.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance and Special Agent in Charge David Gelios of the FBI’s Detroit Field Office made the announcement.

U.S. District Judge Sean F. Cox of the Eastern District of Michigan accepted the plea agreement, resulting in VW’s conviction on three felony charges. VW was convicted, first, of participating in a conspiracy to defraud the United States and its U.S. customers and to violate the Clean Air Act by lying and misleading the EPA and U.S. customers about whether certain VW, Audi and Porsche branded diesel vehicles complied with U.S. emissions standards. Moreover, the company used cheating software to circumvent the U.S. testing process, and concealed material facts about its cheating from U.S. regulators. Second, VW was convicted of obstruction of justice for destroying documents related to the scheme. And third, VW was convicted of importing these cars into the United States by means of false statements about the vehicles’ compliance with emissions limits.

As part of the plea agreement, VW will pay a $2.8 billion criminal penalty to the U.S. and fully cooperate in the government’s ongoing investigation and prosecution of individuals responsible for these crimes. The parties also announced that the government had selected Larry D. Thompson as an independent corporate compliance monitor who will oversee the company during its three-year term of probation. Thompson is a former Deputy U.S. Attorney General. His team includes experts in automotive regulatory compliance, as well as the corporate monitors for Deutsche Bank in the London Interbank Offered Rate (LIBOR) manipulation prosecution and Duke Energy in the coal ash environmental prosecution.

“The sentencing of Volkswagen marks a significant milestone in this historic case,” said Acting U.S. Attorney Lemisch. “Volkswagen has been punished for its scheme to defeat U.S. environmental standards and cheat U.S. consumers. This prosecution sends a strong message to Volkswagen and others that we take our environmental laws seriously and that federal prosecution awaits those who defraud the EPA.”

“The Criminal Division will continue to be vigilant in assuring that all companies – foreign and domestic – that choose to benefit from our valuable economy and consumers abide by our laws, said Acting Assistant Attorney General Blanco. “The sentencing of VW vindicates the rights of U.S. consumers who for over a decade were victims of the calculated corporate decisions of VW and its senior management to fraudulently employ a device intended to deceive U.S. consumers and to defeat our environmental laws.”

“With today's sentence, VW is being held fully accountable for its deception and fraud perpetrated against American consumers and the environment, as well as the deliberate obstruction of the criminal investigation into its wrongdoing,” said Deputy Assistant Attorney General Williams. “We also hope this sends a message around the world that those who violate American environmental laws will be vigorously investigated and prosecuted.”

“Today's strong sentence recognizes the egregious nature of VW’s violations, and VW’s attempt to gain an unfair competitive advantage over automakers that follow the law,” said Acting Assistant Administrator Starfield. “Vehicle emissions standards help protect clean air and ensure a level playing field for companies that play by the rules. When those standards are broken, violators can expect to be held accountable.”

“Americans expect corporations doing business in the United States to conduct their business honestly,” said Special Agent in Charge Gelios. “Today's sentencing sends a clear message that the FBI, along with its federal partners, will continue to hold corporations, like Volkswagen AG, accountable when they defraud consumers and violate federal laws.”

Along with the January 2017 plea agreement, the United States also announced separate civil resolutions of environmental, customs and financial claims, in which VW agreed to pay an additional $1.5 billion to settle EPA’s claim for civil penalties in connection with the importation and sale of these cars, as well as U.S. Customs and Border Protection (CBP) claims for customs fraud. In addition, that agreement requires injunctive relief to prevent future violations. The agreements also resolved alleged violations of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).

The FBI and EPA investigated the case. This case is being prosecuted by members of the Department of Justice’s Criminal Division, Fraud Section, including: Chief of the Securities and Financial Fraud Unit Benjamin D. Singer, as well as Trial Attorneys David Fuhr, Alison Anderson, Christopher Fenton and Gary Winters. Also prosecuting the case are members of the Department of Justice’s Environment and Natural Resources Division, Environmental Crimes Section, including: Senior Trial Attorney Jennifer Blackwell. Additionally, the case is being prosecuted by members of the U.S. Attorney’s Office for the Eastern District of Michigan, including Criminal Division Chief Mark Chutkow, Economic Crimes Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.

A Detroit physician and his wife were arrested this morning and charged by criminal complaint unsealed today for their alleged participation in a conspiracy that involved performing female genital mutilations (FGM) on minors.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Steve Francis of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Detroit Field Office made the announcement.

Fakhruddin Attar, M.D., 53, and his wife, Farida Attar, 50, both of Livonia, Michigan, are charged with conspiring to perform female genital mutilations on minor girls out of Fakhruddin Attar’s medical clinic in Livonia. According to the complaint, some of the minor victims traveled interstate to have the procedure performed. The complaint alleges that the FGM procedure was performed on girls who were approximately six to eight years old.

Both defendants were arrested this morning and are scheduled to appear in federal court in Detroit this afternoon.

The defendants are alleged to have conspired with Jumana Nagarwala, M.D., who was arrested in Detroit on April 12, 2017, and ordered detained on April 17, 2017, pending trial. Nagarwala, Fakhruddin Attar and Farida Attar are believed to be the first people charged under 18 U.S.C. 116, which criminalizes FGM.

A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The FBI’s Detroit Division and HSI investigated the case with the assistance of the Livonia Police Department and with support of the Criminal Division’s Fraud Section, the U.S. Attorney’s Office of the Eastern District of Michigan and the FBI’s International Human Rights Unit, Criminal Investigative Division. Deputy Chief Sara Woodward of the General Crimes Unit of the Eastern District of Michigan, Fraud Section Assistant Chief Nick Surmacz and Trial Attorneys Amy Markopoulos and Malisa Dubal are prosecuting the case.

The FBI’s Detroit Field Division has set up a tip line for anyone who has information pertaining to the illegal practice of FGM or Dr. Jumana Nagarwala, Fakhruddin Attar or Farida Attar at 1-800-CALL-FBI (225-5324). To submit an e-tip, please visit FBI.GOV/FGM.

Attar et al. Complaint

A Detroit physician and his wife were arrested this morning and charged by criminal complaint unsealed today for their alleged participation in a conspiracy that involved performing female genital mutilations (FGM) on minors.

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Steve Francis of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Detroit Field Office made the announcement.

 

Fakhruddin Attar, M.D., 53, and his wife, Farida Attar 50, both of Livonia, Michigan, are charged with conspiring to perform female genital mutilations on minor girls out of Fakhruddin Attar’s medical clinic in Livonia. According to the complaint, some of the minor victims traveled interstate to have the procedure performed. The complaint alleges that the FGM procedure was performed on girls who were approximately six to eight years old.

 

Both defendants were arrested this morning and are scheduled to appear in federal court in Detroit this afternoon.

 

The defendants are alleged to have conspired with Jumana Nagarwala, M.D., who was arrested in Detroit on April 12, 2017, and ordered detained on April 17, 2017, pending trial. . Nagarwala, Fakhruddin Attar and Farida Attar are believed to be the first people charged under 18 U.S.C. 116, which criminalizes FGM.

 

A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

 

The FBI’s Detroit Division and HSI investigated the case with the assistance of the Livonia Police Department and with support of the Criminal Division’s Fraud Section, the U.S. Attorney’s Office of the Eastern District of Michigan and the FBI’s International Human Rights Unit, Criminal Investigative Division. Deputy Chief Sara Woodward of the General Crimes Unit of the Eastern District of Michigan, Fraud Section Assistant Chief Nick Surmacz and Trial Attorneys Amy Markopoulos and Malisa Dubal are prosecuting the case.

 

The FBI’s Detroit Field Division has set up a tip line for anyone who has information pertaining to the illegal practice of FGM or Dr. Jumana Nagarwala, Fakhruddin Attar or Farida Attar at 1-800-CALL-FBI (225-5984). To submit an e-tip, please visit FBI.GOV/FGM.

 

# # #

A Detroit podiatrist was charged in an indictment unsealed today for his alleged participation in a $13.9 million health care fraud scheme involving fraudulent claims for unnecessary foot surgeries and other podiatric services that were never rendered.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios 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.

Lawrence Young, D.P.M., of Bloomfield Hills, Michigan, was charged with six counts of health care fraud in an indictment filed in the Eastern District of Michigan.  Young was arrested this morning and made his initial appearance before U.S. Magistrate Judge Anthony P. Pattiof the Eastern District of Michigan.  

According to the indictment, Young owned Dearborn Podiatric Services and Georgetown Podiatric Services, located in Dearborn, Michigan, and Sterling Heights, Michigan, respectively.  The indictment alleges that between January 2010 through 2016,  Young falsely conveyed to his podiatry patients that they needed weekly or bi-weekly shots and minor surgeries to prevent hammertoe, which were allegedly medically unnecessary.  As a result, these patients returned to his practice on a regular basis every month for shots and minor surgeries.  Additionally, Young allegedly billed Medicare for other podiatry services, such as Unna Boots, which were never given.   
 
According to the indictment, Young submitted false and fraudulent claims to Medicare in the amount of approximately $13.9 million.    

An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.  

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 Attorney Amy Markopoulos of the Fraud Section is prosecuting the case. 

Any patient of Dr. Young’s concerned about their treatment, or who needs access to his/her patient file can reach out to Nicole McGee, FBI Victim Specialist, at (313) 496-4348.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 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 Detroit Emergency Room physician was charged by complaint for performing female genital mutilation (FGM) on minor females.

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Steve Francis of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Detroit Field Office made the announcement.

 

Jumana Nagarwala, M.D., 44, of Northville, Michigan, is charged with performing FGM on minor girls out of a medical office in Livonia, Michigan. According to the complaint, some of the minor victims allegedly traveled interstate to have Nagarwala perform the procedure. The complaint alleges that Nagarwala performed FGM on girls who were approximately 6 to 8 years old. This is believed to be the first case brought under 18 U.S.C. 116, which criminalizes FGM. Nagarwala was arrested and will appear in federal court in Detroit this afternoon.

 

“According to the complaint, despite her oath to care for her patients, Dr. Nagarwala is alleged to have performed horrifying acts of brutality on the most vulnerable victims,” said Acting Assistant Attorney General Blanco. “The Department of Justice is committed to stopping female genital mutilation in this country, and will use the full power of the law to ensure that no girls suffer such physical and emotional abuse.”

 

“Female genital mutilation constitutes a particularly brutal form of violence against women and girls. It is also a serious federal felony in the United States. The practice has no place in modern society and those who perform FGM on minors will be held accountable under federal law,” stated Acting United States Attorney Daniel Lemisch.

 

“The allegations detailed in today’s criminal complaint are disturbing. The FBI, along with its law enforcement partners, are committed to doing whatever necessary to bring an end to this barbaric practice and to ensure no additional children fall victim to this procedure”, said Special Agent in Charge David Gelios.

 

“The allegations against the defendant in this investigation are made even more deplorable, given the defendant’s position as a trusted medical professional in the community,” said Francis. “My sincere hope is that these charges will give support to those who have allegedly suffered both physically and emotionally.”

 

A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

 

The FBI’s Detroit Division and HSI investigated the case with the assistance of the Livonia Police Department and with support of the Criminal Division’s Fraud Section, the U.S. Attorney’s Office of the Eastern District of Michigan and the FBI’s International Human Rights Unit, Criminal Investigative Division. Deputy Chief Sara Woodward of the Eastern District of Michigan, Fraud Section Assistant Chief Nick Surmacz and Trial Attorneys Amy Markopoulos and Malisa Dubal are prosecuting the case.

 

The FBI’s Detroit Field Division has set up a tip line for anyone who has information pertaining to the illegal practice of FGM or Dr. Jumana Nagarwala. Please call 1-800-CALL-FBI (225-5984) or file an e-tip at FBI.GOV/FGM.

A Detroit Emergency Room physician was charged by complaint for performing female genital mutilation (FGM) on minor females.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Steve Francis of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Detroit Field Office made the announcement.

Jumana Nagarwala, M.D., of Northville, Michigan, is charged with performing FGM on minor girls out of a medical office in Livonia, Michigan. According to the complaint, some of the minor victims allegedly traveled interstate to have Nagarwala perform the procedure. The complaint alleges that Nagarwala performed FGM on girls who were approximately six to eight years old. This is believed to be the first case brought under 18 U.S.C. 116, which criminalizes FGM. Nagarwala was arrested and is scheduled to appear in federal court in Detroit this afternoon.

“According to the complaint, despite her oath to care for her patients, Dr. Nagarwala is alleged to have performed horrifying acts of brutality on the most vulnerable victims,” said Acting Assistant Attorney General Blanco. “The Department of Justice is committed to stopping female genital mutilation in this country, and will use the full power of the law to ensure that no girls suffer such physical and emotional abuse.”

“Female genital mutilation constitutes a particularly brutal form of violence against women and girls. It is also a serious federal felony in the United States,” said Acting U.S. Attorney Lemisch. “The practice has no place in modern society and those who perform FGM on minors will be held accountable under federal law.”

“The allegations detailed in today’s criminal complaint are disturbing,” said Special Agent in Charge Gelios. “The FBI, along with its law enforcement partners, are committed to doing whatever necessary to bring an end to this barbaric practice and to ensure no additional children fall victim to this procedure.”

“The allegations against the defendant in this investigation are made even more deplorable, given the defendant’s position as a trusted medical professional in the community,” said Special Agent in Charge Francis. “My sincere hope is that these charges will give support to those who have allegedly suffered both physically and emotionally.”

A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The FBI’s Detroit Division and HSI investigated the case with support of the Criminal Division’s Fraud Section, the U.S. Attorney’s Office of the Eastern District of Michigan and the FBI’s International Human Rights Unit, Criminal Investigative Division. Deputy Chief Sara Woodward of the Eastern District of Michigan and Fraud Section Assistant Chief Nick Surmacz and Trial Attorneys Amy Markopoulos and Malisa Dubal are prosecuting the case.

The FBI’s Detroit Field Division has set up a tip line for anyone who has information pertaining to the illegal practice of FGM or Dr. Jumana Nagarwala. Please call 1-800-CALL-FBI (225-5324) or file an e-tip at FBI.GOV/FGM.

Nagarwala Complaint

A Modesto, California resident was convicted today after a 10-day jury trial on 14 child exploitation offenses for his role in a child exploitation enterprise, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan.  

Justin Fuller, 37, a bridge maintenance supervisor for the California Department of Transportation, was found guilty of one count of engaging in a child exploitation enterprise; one count of conspiracy to produce child pornography; five counts of production of child pornography; one count of conspiracy to receive child pornography; one count of conspiracy to access with intent to view child pornography; and five counts of enticement of a minor to engage in illegal sexual activity.

According to trial evidence, between Nov. 16, 2013, and March 10, 2016, Fuller and five co-conspirators located in different states worked together to lure juvenile girls to a video chat website in order to get them to engage in sexually explicit conduct.  The group members predominantly targeted prepubescent girls and would, unbeknownst to the girls, record the lured young girls performing the sexually explicit conduct.  The group was active for approximately two years and communicated with each other through “base” chatrooms that were password-protected.  In the base chat rooms, Fuller and co-conspirators strategized how to convince minor females to produce child pornography, including pretending to be teenage boys or girls to help convince the minor females to engage in sexual activity.

The other five co-conspirators each pleaded guilty prior to trial to one count of engaging in a child exploitation enterprise.  On June 21, 2016, Virgil Napier, 54, of Waterford, Michigan, pleaded guilty.  On July 11, 2016, John Garrison, 52, of Glenarm, Illinois, pleaded guilty.  On Feb. 24, 2017, Thomas Dougherty, 54, of Vallejo, California, pleaded guilty.  On Sept. 23, 2016, Dantly Nicart, 39, a citizen of the Philippines residing in Las Vegas, pleaded guilty, and was sentenced to 20 years imprisonment followed by five years of supervised release and $150,000 in restitution on March 2, 2017.   On June 21, 2016, Brandon Henneberg, 31, of Diller, Nebraska, pleaded guilty in the District of Nebraska, and on Sept. 14, 2016, he was sentenced to 35 years imprisonment, followed by a lifetime term of supervised release and $60,000 in restitution.

Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney April N. Russo of the Eastern District of Michigan are prosecuting the case.  The FBI’s Detroit Field Office and Southeast Michigan Trafficking and Exploitation Crimes (SEMTEC) task force investigated the case with assistance from CEOS’s High Technology Investigative Unit.

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 Modesto, California resident was convicted today after a 10-day jury trial on 14 child exploitation offenses for his role in a child exploitation enterprise, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan.

 

Justin Fuller, 37, a bridge maintenance supervisor for the California Department of Transportation, was found guilty of one count of engaging in a child exploitation enterprise; one count of conspiracy to produce child pornography; five counts of production of child pornography; one count of conspiracy to receive child pornography; one count of conspiracy to access with intent to view child pornography; and five counts of enticement of a minor to engage in illegal sexual activity.

 

According to trial evidence, between Nov. 16, 2013 and March 10, 2016, Fuller and five co-conspirators located in different states worked together to lure juvenile girls to a video chat website in order to get them to engage in sexually explicit conduct. The group members predominantly targeted prepubescent girls and would, unbeknownst to the girls, record the lured young girls performing the sexually explicit conduct. The group was active for approximately two years and communicated with each other through “base” chatrooms that were password-protected. In the base chat rooms, Fuller and co-conspirators strategized how to convince minor females to produce child pornography, including pretending to be teenage boys or girls to help convince the minor females to engage in sexual activity.

 

The other five co-conspirators each pleaded guilty prior to trial to one count of engaging in a child exploitation enterprise. On June 21, 2016, Virgil Napier, 54, of Waterford, Michigan, pleaded guilty. On July 11, 2016, John Garrison, 52, of Glenarm, Illinois, pleaded guilty. On Feb. 24, 2017, Thomas Dougherty, 54, of Vallejo, California, pleaded guilty. On Sept. 23, 2016, Dantly Nicart, 39, a citizen of the Philippines residing in Las Vegas, pleaded guilty, and was sentenced to 20 years imprisonment followed by five years of supervised release and $150,000 in restitution on March 2, 2017. On June 21, 2016, Brandon Henneberg, 31, of Diller, Nebraska, pleaded guilty in the District of Nebraska, and on Sept. 14, 2016, he was sentenced to 35 years imprisonment, followed by a lifetime term of supervised release and $60,000 in restitution.

 

Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney April N. Russo of the Eastern District of Michigan are prosecuting the case. The FBI’s Detroit Field Office and Southeast Michigan Trafficking and Exploitation Crimes (SEMTEC) task force investigated the case with assistance from CEOS’s High Technology Investigative Unit.

 

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.

 

# # #

The Fill Building Associates, L.L.C., d/b/a Fill Building East, owner of a professional office building located at 27301 Dequindre Rd. in Madison Heights, Michigan, has agreed to make a number of structural changes to the building to resolve allegations that it was inaccessible to individuals with mobility disabilities in violations of the Americans with Disabilities Act (ADA), announced Daniel L. Lemisch, acting United States Attorney.

 

The settlement agreement resolves an investigation following a complaint filed by a person with a disability who was unable to access her physician’s office due to architectural barriers present at the building. Under the terms of the settlement agreement, the building owners agreed to make renovations to the facility so that parking, office space, restrooms, elevators and other public areas are accessible to people with disabilities.

 

“When a building is inaccessible, it is essentially a proclamation to people with disabilities that they are not welcomed or valued there,” said Daniel L. Lemisch, acting U.S. Attorney. “This is why it’s so important for owners of existing buildings to understand that they are obligated under the ADA to remove all architectural barriers where readily achievable to do so and why the US Attorney’s Office will continue its vigorous ADA enforcement efforts.”

 

Today’s agreement was reached under Title III of the ADA, which prohibits discrimination against individuals with disabilities by businesses that serve the public. The United States Attorney’s Office for the Eastern District of Michigan will monitor compliance with the agreement until all required actions are completed.

 

More information about this settlement and 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. 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.

 

Today a federal grand jury returned an indictment charging a state senator with conspiracy and theft crimes, announced Acting United States Attorney Daniel L. Lemisch.

 

Joining Lemisch in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.

 

Charged was Bertram Johnson, Jr., 43, of Highland Park, Michigan

 

The two-count indictment charges that from approximately March 2014 through January 2015, Johnson, Jr., a Senator for the State of Michigan, conspired to commit theft, and did commit theft, of monies under the care, custody, and control of the State of Michigan.

 

According to the indictment, Johnson borrowed thousands of dollars in cash from an unnamed co-conspirator, and later placed that co-conspirator on the public payroll as a member of his staff, knowing that the co-conspirator was a “ghost employee” who contributed no work on behalf of Johnson’s staff. The indictment alleges that Johnson placed this “ghost employee” on the public payroll solely to pay off Johnson’s personal loan debt, and that the ghost employee was paid over $23,000 in taxpayer money.

 

“Theft of taxpayer’s money by elected public officials, as these charges allege, is disheartening and will not be tolerated" Lemisch said.

 

"Today’s indictment is an unfortunate reminder that public officials sometimes squander the public’s trust in exchange for personal gain", said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. “Rooting out public corruption at all levels of government is an investigative priority of the FBI.”

 

“Senator Johnson’s alleged actions abused the trust of his constituents and amounted to simple theft,” said IRS-Criminal Investigation Special Agent in Charge Manny Muriel of the Detroit Field Office. “It is in these cases that the IRS takes particular interest in individuals, allegedly abusing the power they have been entrusted with – for their own personal benefit. This investigation exemplifies interagency collaboration and the United States’ commitment to combat the abuse of power and to elevate transparency and accountability

 

This case was investigated by agents of the FBI and IRS-CI. This case is being prosecuted by Assistant United States Attorneys J. Michael Buckley and Frances Carlson.

 

If convicted on all charges, Johnson faces a statutory maximum penalty of ten years in prison.

 

An indictment is only a charge 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 second Detroit-area physician pleaded guilty today for his role in a $17.1 million Medicare fraud scheme involving medically unnecessary physician visits and drug prescriptions.  

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios 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.

Leonard Van Gelder, 69, of Caledonia, Michigan, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Avern Cohn of the Eastern District of Michigan.  Sentencing will be set at a later date.   

Van Gelder was a physician for Lake Michigan Mobile Doctors, a Chicago-based home physician service with an office in Southfield, Michigan, from November 2011 to August 2013.  As part of his guilty plea, Van Gelder admitted that he saw patients who did not qualify for his services and whose visits were billed to Medicare at the highest billing codes.  Van Gelder also admitted that he prescribed to patients medically unnecessary narcotics, such as Vicodin, in exchange for the ability to bill Medicare for the patients’ visits.  According to court documents, Mobile Doctors billed Medicare approximately $17.1 million as a result of the scheme.

In December 2016, Van Gelder’s co-conspirator, Stephen Mason, 46, of Zionsville, Indiana, pleaded guilty to one count of conspiracy to commit health care fraud. One additional doctor, Gerald Daneshvar, 41, of West Bloomfield, Michigan, is awaiting trial.  All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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 of the Eastern District of Michigan.  Fraud Section Trial Attorney Amy Markopoulos is prosecuting the case.

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 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 former Detroit Public Schools Director of Grant Development was sentenced today to 18 months in prison and an additional 4 months in a community corrections center upon her release, as a condition of supervised release, after having pleaded guilty to federal program fraud, announced Acting U.S. Attorney Daniel Lemisch.

 

Joining Lemisch in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Bernadette Kakooza, Inspector General of the Detroit Public Schools.

 

Carolyn StarkeyDarden, 72, of Detroit, was sentenced by United States District Judge Stephen J. Murphy, III.

 

According to court records between 2005 and 2012, Carolyn StarkeyDarden, as president and/or agent of companies she established to provide supplemental educational services to eligible students in Michigan, obtained at least $1,275,000 from DPS through a scheme in which she submitted fraudulent invoices for payment to DPS for tutorial services that were never rendered to DPS students.

 

This case was investigated by agents of the FBI and the Office of Inspector General for Detroit Public Schools. This case was prosecuted by Assistant United States Attorney Dawn N. Ison.

 

The FBI Detroit Area Corruption Task Force (DACTF) is led by the FBI Detroit Field Office, and consists of Special Agents and law enforcement officers with the FBI Detroit; the Detroit Police Department; the Michigan State Police; the Michigan Attorney General’s Office; the Internal Revenue Service – Criminal Investigation Division; the U.S. Department of Housing and Urban Development–Office of Inspector General; the U.S. Environmental Protection Agency–Office of Inspector General; the U.S. Department of Transportation–Office of Inspector General; the U.S. Department of Homeland Security–Office of Inspector General; the U.S. Department of Education–Office of Inspector General; and the U.S. Department of Labor–Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.

A 30-year-old Detroit man pleaded guilty today to charges of unregistered possession of destructive devices, Acting United States Attorney Daniel L. Lemisch announced today.

 

Lemisch was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division.

 

Sebastian Gregerson pleaded guilty before United States District Judge Arthur J. Tarnow in Detroit.

 

According to court records, on July 31, 2016, defendant Gregerson and an FBI employee acting in an undercover capacity met at a gas station in Monroe, Michigan, where Gregerson traded his Beretta M9 handgun for grenade parts containing explosives that were designed or intended for use in grenades and from which grenades could be readily assembled. These grenades are considered destructive devices that must be registered in the National Firearms Registration and Transfer Record. Gregerson did not register the destructive devices.

 

According to the court records, Gregerson made statements, both online and in person, showing support for the Islamic State of Iraq and Levant (ISIL), a designated foreign terrorist organization, and made statements relating to committing violent acts.

 

Gregerson was arrested on July 31, 2016, by FBI agents and remains in custody pending his sentencing which has been scheduled for June 30, 2017 at 2:30 pm.. Gregerson faces a term of up 10 years in federal prison.

Dr. Anthony Conrardy, age 61, and Dr. William McCutchen, III, age 46, were found guilty yesterday of unlawfully distributing Schedule II narcotics by a federal jury in Detroit, MI, acting United States Attorney Daniel L. Lemisch announced today. Dr. Anthony Conrardy was convicted of five counts of unlawfully distributing Oxycodone and Dilaudid, and Dr. William McCutchen, III was convicted of four counts of unlawfully distributing Oxycodone.

 

Lemisch was joined in the announcement by Special Agent in Charge Timothy J. Plancon, of the Drug Enforcement Administration, Special Agent in Charge David P. Gelios of the Federal Bureau of Investigation’s Detroit Division, Lamont Pugh, Special Agent in Charge of the Inspector General of the Department of Health and Human Services, and Manny Muriel, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.

 

The jury deliberated for 8 days before returning the verdict, concluding a four-week trial before United States District Judge Arthur J. Tarnow.

 

Their convictions at trial follow the earlier guilty pleas of Dr. Shardchandra Patel, age 72, to conspiracy, and Lillian Meghnot, age 86, to conspiracy, healthcare fraud, and money laundering. The criminal activity of Dr. Anthony Conrardy, Dr. William McCutchen, III, Dr. Sharadchandra Patel, and Lillian Meghnot stemmed from the operation of the Meghnot Comprehensive Center for Hope, a purported medical clinic formerly located on the Ann Arbor-Ypsilanti border. Federal agents executed a search warrant and arrests at the Meghnot Clinic in March of 2015. The Meghnot Clinic was owned and operated by Lillian Meghnot, who hired staff and others to give the Meghnot Clinic the false appearance of a legitimate medical center, when in reality the Meghnot Clinic was a pill mill supplying narcotics to drug-seeking customers.

 

The evidence presented at trial demonstrated that Dr. Anthony Conrardy and Dr. William McCutchen, III wrote Schedule II narcotic prescriptions to individuals outside the course of professional medical practice and for no legitimate medical purpose in exchange for compensation. The Meghnot Center charged its purported patients $250.00 in cash for a thirty-day supply of narcotics.

 

The guilty pleas of Lillian Meghnot and Dr. Sharadchandra Patel acknowledged that from approximately September of 2011 to March of 2015, the Meghnot Clinic ostensibly operated as a pain management center that, in reality, wrote medically unnecessary prescriptions for Oxycodone, Dilaudid, Vicodin, and other narcotics and benzodiazepines to drug-seeking individuals purporting to be patients. The Meghont Clinic’s unlawful practices generated roughly $4.5 million dollars in revenue. And the Clinic’s physicians prescribed over 1.5 million oxycodone pills, among other drugs.

 

Each of the counts on which Dr. Conrardy and Dr. McCutchen were convicted carry a penalty of up to 20 years in prison and a fine of up to $1,000,000.

 

The jury trial and convictions followed a multi-year investigation by the United States Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the United States Department of Health and Human Services Office of the Inspector General (HHS-OIG), and the United States Internal Revenue Service Office of Criminal Investigations (IRS-CI). Assistant United States Attorneys Charles J. Kalil II and Patrick J. Hurford prosecuted the case.

 

Garald Bennett of Cass City, Michigan was sentenced on Monday, March 20, 2017, to one year and one day in custody for falsely certifying and marking cargo tanks as having passed hydrostatic pressure and wet fluorescent magnetic particle test as required by the Hazardous Materials Transportation Safety Act, acting United States Attorney Daniel L. Lemisch announced.

 

Mr. Lemisch was joined in the announcement by Thomas J. Ullom, Regional Special Agent-in-Charge, Office of Inspector General, U.S. Department of Transportation.

 

Bennet was sentenced by United States District Judge Thomas Ludington in Bay City, Michigan. In imposing the sentence, Judge Ludington described Bennett’s work as “dangerously ineffective.”

 

“The sentencing of Garald Bennett related to falsely certifying and marking certain cargo tanks as having passed required safety tests is a clear signal that severe penalties await those that would seek to circumvent hazardous materials transportation laws,” said Thomas J. Ullom, regional Special Agent-in-Charge of U.S. DOT’s Office of Inspector General. “Working with our Federal, state and local law enforcement and prosecutorial colleagues, we will continue our vigorous efforts to ensure the integrity of DOT’s HAZMAT safety program.”​

 

According to court documents, Bennett, 72, managed LPG Service and Leasing LLC (LPG), a cargo tank testing facility in Cass City, MI. In that capacity, Bennett supervised the employees of LPG. Bennett, both personally and through his subordinates, repeatedly and falsely certified to customers that LPG had property inspected and tested the cargo tank portions of tanker trucks used to transport liquid and gaseous bulk cargos, including explosive materials, as required by the Department of Transportation regulations governing five year re-certifications. The regulations are designed to ensure the safety of the public on the roadways and the people who work on and around the cargo tanks.

 

Bennett also knew that the water tank at LPG that should have held the water used to conduct hydrostatic pressure tests was drained to prevent freezing. Nevertheless, he continued to certify that hydrostatic pressure tests had been done on tanks brought in for inspection.

 

Similarly, when Bennett was in charge at LPG, some of the cargo tanks that were supposed to be tested were not emptied and cleaned properly, making it impossible for workers to enter the cargo tanks to conduct the required testing procedure. Bennett nevertheless falsely certified that the cargo tanks had been properly subject to wet fluorescent magnetic particle testing and had passed inspection.

 

Knowing that the required testing procedures had not been followed, Bennett instructed the employees at LPG to apply labels to the cargo tanks that indicated that the tanks had been successfully tested. Moreover, Bennett directed employees to work on cargo tanks without verifying that the employees followed required procedures.

 

The case was investigated by agents of OIG- U.S. Department of Transportation and prosecuted by the United States Attorney’s Office in Bay City, Michigan.

 

 

United States Attorney Barbara L. McQuade has resigned after being asked to tender her resignation by President Donald Trump.

 

McQuade, the first woman to serve as U.S. Attorney for the Eastern District of Michigan, was appointed by President Barack Obama, and sworn in on January 4, 2010.

 

During her tenure, McQuade has overseen a number of significant cases, including the conviction of former Detroit Mayor Kwame Kilpatrick and more than 30 others on public corruption charges; the conviction and life sentence of an Al-Qaeda operative for attempting to blow up an airliner over Detroit on Christmas Day in 2009 with a bomb concealed in his underwear; the conviction and 45-year sentence Dr. Farid Fata for lying to patients about having cancer so that he could bill Medicare for expensive chemotherapy treatments; the conviction and $4.3 billion fine against Volkswagen AG for cheating on emissions tests; the conviction and $1 billion fine against Takata Corp. for fraudulently concealing defective airbags; and settlements with Pittsfield Township to permit the building of an Islamic School and with the City of Sterling Heights to permit the building of a mosque under religious land use laws.

 

McQuade also joined with other law enforcement leaders to launch Detroit One, a violence reduction strategy and community partnership. Since Detroit One began in 2013, homicide rates, non-fatal shootings and carjackings in Detroit have decreased. A key component of the initiative is the Ceasefire gang intervention program. A similar enforcement initiative, Flint First, was recently launched in Flint.

 

Upon taking office, McQuade restructured the office for the first time in 35 years to focus attorney resources on district priorities. At that time, McQuade created new units dedicated to violent crime, public corruption, health care fraud and civil rights. Each unit has seen robust enforcement activity. McQuade’s vision has been to use the resources of the U.S. Attorney’s Office to improve the quality of life for the people of the Eastern District of Michigan, focusing on enforcement, prevention and community trust.

 

At the national level, McQuade served as Vice Chair of the Attorney General’s Advisory Committee under Attorney General Loretta Lynch, and served as co-chair of the Terrorism and National Security Subcommittee since 2010.

 

“I have loved serving in this job as much as anyone has ever loved any job,” McQuade said. “It has been an incredible privilege to work alongside public servants who devote their tremendous talents to improving the quality of life in our community. I am proud to have served as U.S. Attorney in the Obama Administration.”

 

Before becoming U.S. Attorney, McQuade was an Assistant U.S. Attorney in Detroit for 12 years, serving as Deputy Chief of the National Security Unit. She prosecuted cases involving terrorism financing, foreign agents, export violations and threats, and served as the district’s Crisis Management Coordinator.

 

McQuade practiced law at the firm of Butzel Long in Detroit from 1993 to 1998, and served as a law clerk to Hon. Bernard A. Friedman on the U.S. District Court for the Eastern District of Michigan from 1991 to 1993. From 2003 to 2009, McQuade served as an adjunct professor at the University of Detroit Mercy School of Law, teaching criminal law in the evenings.

 

Born in Detroit, McQuade is a 1987 graduate of the University of Michigan and a 1991 graduate of the University of Michigan Law School. She and her husband have four children.

 

The Eastern District of Michigan covers 34 counties and six million residents. The United States Attorney’s Office, with staffed offices in Detroit, Flint and Bay City, has 115 attorneys and another 100 support professionals, and conducts all criminal and civil litigation in the district involving the United States government.

 

 

Volkswagen AG (VW) pleaded guilty in federal court in Detroit today to three felony counts charging: (1) conspiracy to defraud the United States, engage in wire fraud, and violate the Clean Air Act; (2) obstruction of justice; and (3) importation of merchandise by means of false statements. As part of the plea, VW agreed to pay a $2.8 billion penalty as a result of the company’s decade-long scheme to sell diesel vehicles containing software designed to cheat on U.S. emissions tests. In January 2017, VW had agreed to plead guilty to resolve these criminal charges.

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Barbara McQuade of the Eastern District of Michigan, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, Special Agent in Charge Jeffrey Martinez of the Chicago Area Office of the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) and Special Agent in Charge David Gelios of the FBI Detroit Field Office, made the announcement.

 

VW pleaded guilty before U.S. District Judge Sean F. Cox of the Eastern District of Michigan. Specifically, VW pleaded guilty, first, to participating in a conspiracy to defraud the United States and VW’s U.S. customers and to violate the Clean Air Act by lying and misleading the EPA and U.S. customers about whether certain VW, Audi and Porsche branded diesel vehicles complied with U.S. emissions standards, using cheating software to circumvent the U.S. testing process and concealing material facts about its cheating from U.S. regulators. Second, VW pleaded guilty to obstruction of justice for destroying documents related to the scheme. And third, VW pleaded guilty to importing these cars into the United States by means of false statements about the vehicles’ compliance with emissions limits. After accepting VW’s plea, Judge Cox scheduled the company’s sentencing for April 21, 2017.

 

The FBI and EPA-CID investigated the case. This case is being prosecuted by members of the Department of Justice’s Criminal Division, Fraud Section, including: Chief of the Securities and Financial Fraud Unit Benjamin D. Singer, as well as Trial Attorneys David Fuhr, Alison Anderson, Christopher Fenton and Gary Winters. Also prosecuting the case are members of the Department of Justice’s Environment and Natural Resources Division, Environmental Crimes Section, including: Senior Trial Attorney Jennifer Blackwell. Additionally, the case is being prosecuted by members of the U.S. Attorney’s Office for the Eastern District of Michigan, including Criminal Division Chief Mark Chutkow, Economic Crimes Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.

Volkswagen AG (VW) pleaded guilty in federal court in Detroit today to three felony counts charging: (1) conspiracy to defraud the United States, engage in wire fraud, and violate the Clean Air Act; (2) obstruction of justice; and (3) importation of merchandise by means of false statements.  As part of the plea, VW agreed to pay a $2.8 billion penalty as a result of the company’s decade-long scheme to sell diesel vehicles containing software designed to cheat on U.S. emissions tests.  In January 2017, VW had agreed to plead guilty to resolve these criminal charges.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Barbara McQuade of the Eastern District of Michigan, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, Special Agent in Charge Jeffrey Martinez of the Chicago Area Office of the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) and Special Agent in Charge David Gelios of the FBI Detroit Field Office, made the announcement.

VW pleaded guilty before U.S. District Judge Sean F. Cox of the Eastern District of Michigan.  Specifically, VW pleaded guilty, first, to participating in a conspiracy to defraud the United States and VW’s U.S. customers and to violate the Clean Air Act by lying and misleading the EPA and U.S. customers about whether certain VW, Audi and Porsche branded diesel vehicles complied with U.S. emissions standards, using cheating software to circumvent the U.S. testing process and concealing material facts about its cheating from U.S. regulators.  Second, VW pleaded guilty to obstruction of justice for destroying documents related to the scheme.  And third, VW pleaded guilty to importing these cars into the United States by means of false statements about the vehicles’ compliance with emissions limits.  After accepting VW’s plea, Judge Cox scheduled the company’s sentencing for April 21, 2017.

The FBI and EPA-CID investigated the case.  This case is being prosecuted by members of the Department of Justice’s Criminal Division, Fraud Section, including: Chief of the Securities and Financial Fraud Unit Benjamin D. Singer, as well as Trial Attorneys David Fuhr, Alison Anderson, Christopher Fenton and Gary Winters.  Also prosecuting the case are members of the Department of Justice’s Environment and Natural Resources Division, Environmental Crimes Section, including: Senior Trial Attorney Jennifer Blackwell.  Additionally, the case is being prosecuted by members of the U.S. Attorney’s Office for the Eastern District of Michigan, including Criminal Division Chief Mark Chutkow, Economic Crimes Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse.  The Justice Department’s Office of International Affairs also assisted in the case.  The Justice Department extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.

Ann Arbor, Michigan - Three defendants, two brothers and a sister were convicted in Ann Arbor on numerous counts of conspiracy, mail fraud, aggravated identity theft, and engaging in illegal monetary transactions, U.S. Attorney Barbara L. McQuade announced today.

 

Joining McQuade in the announcement was Manny Muriel, Special Agent in Charge of the Detroit Office of the Internal Revenue Service - Criminal Investigation.

 

The 10-day trial was conducted before U.S. District Judge Judith Levy. Sentencing is scheduled for August 21, 2017 at 10 am.

 

Defendants Anthony Gandy, Christopher Gandy and Sharon Gandy-Micheau, were each convicted of numerous counts of conspiracy, mail fraud, aggravated identity theft, and engaging in illegal monetary transactions. The conspiracy involved over 20 fraudulent income tax returns for trusts that requested over $1.4 million in refunds. The IRS mailed to the defendants a number of refund checks totaling $940,000.

 

According to evidence presented at trial, the defendants participated in a scheme to file fraudulent Forms 1041, U.S. Income Tax Returns for Estates and Trusts. The scheme was facilitated by opening post office boxes and bank accounts to receive the proceeds of the scheme. The funds were either deposited into the bank accounts and the proceeds were quickly withdrawn or the refund checks were cashed by a Detroit area check cashing store.

 

In addition, two witnesses testified they had previously lost their identification and social security cards. Those documents were either recovered at the residence of Sharon Gandy-Micheau or images were found on a computer at the same residence. Their identification was used to further the scheme.

 

"These defendants attempted to steal taxpayer money, and they did so by using the identities of innocent victims," McQuade said. "This case should signal the ability of IRS investigators to detect fraud and bring offenders to justice."

 

IRS-Criminal Investigation Special Agent in Charge Manny Muriel said, “Investigating refund fraud and identity theft remains a priority for IRS Criminal Investigation. Today’s guilty verdicts should send a clear message to would-be criminals that IRS-Criminal Investigation will continue to pursue those who prey on innocent victims and steal from the American tax system.”

 

The case was investigated by agents of the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by AUSAs Stephen Hiyama and Ross Mackenzie with the assistance of paralegal Carol Oliver.

 

A Detroit-area physician pleaded guilty today for his role in a $5.4 million Medicare fraud scheme involving phony physician visits and drug prescriptions.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios 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.

Aaron Goldfein, 52, of Bloomfield Hills, Michigan, pleaded guilty to one count of conspiracy to commit health care and wire fraud.  Previously, on Jan. 19, 2017, co-conspirators, William Sokoll, 61, of Royal Oak, Michigan, and William Binder, 60, of Ypsilanti, Michigan, each pleaded guilty to one count of conspiracy to commit health care and wire fraud.  Sokoll was a physician who lost his medical license in 2008 and Binder was a licensed physician who surrendered his DEA license in March 2011.  Both worked at Tri-City Medical Center (Tri-City) in Livonia, Michigan, for Goldfein.   

As part of his plea, Goldfein admitted to being part of a scheme in which his co-conspirators would hold themselves out as licensed physicians and purport to perform physician home visits and other services for Medicare beneficiaries, although these co-conspirators were not licensed to practice medicine in Michigan.  Goldfein would then bill Medicare, through Tri City, as if he himself had completed these visits.  Goldfein also admitted to being part of a scheme in which he received kickbacks in exchange for writing home health prescriptions.  

In his plea agreement, Sokoll admitted to being one of the unlicensed physicians employed at Tri City. Sokoll admitted that he and this co-conspirator prepared medical documentation purportedly evidencing licensed physician home visits and other services provided to beneficiaries, when in fact the beneficiaries were not treated by a physician licensed in Michigan. In addition, third co-defendant and licensed physician, Goldfein signed the medical documentation completed by Sokoll and the other unlicensed co-conspirator for services the physician did not provide to beneficiaries.

Additionally, Sokoll, Binder and Goldfein admitted in connection with their guilty pleas that they and other unlicensed co-conspirators prescribed beneficiaries medications, including controlled substances, under Goldfein’s name and DEA registration number, when although Goldfein had not seen or diagnosed the beneficiaries.  Medicare Part D ultimately paid for some of these prescriptions, which Goldfein ultimately signed.

In addition to writing prescriptions for controlled substances, Binder, as part of his guilty plea, admitted to being part of a scheme at Tri-City in which he and his co-conspirators would submit or cause the submission of false claims to Medicare by  billing for physician home visits where referrals for the services were obtained through the payment and promise of payment of kickbacks.  Members of the conspiracy, including Binder, would also bill for home health care services that were, at times, not provided and not medically necessary, and where referrals for services were obtained through the payment and promise of payment of 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.  Fraud Section Trial Attorneys Dustin Davis, Amy Markopoulos and Jessica Collins are prosecuting the case.

Tokyo-based Takata Corporation, one of the world’s largest suppliers of automotive safety-related equipment, pleaded guilty to one count of wire fraud and was sentenced to pay a total of $1 billion in criminal penalties stemming from the company’s conduct in relation to sales of defective airbag inflators.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Barbara McQuade of the Eastern District of Michigan, Special Agent in Charge David Gelios of the FBI’s Detroit Field Office and Regional Special Agent in Charge Thomas J. Ullom of the U.S. Department of Transportation Office of Inspector General’s (OIG) Chicago Field Office made the announcement.

“For over a decade, Takata lied to its customers about the safety and reliability of its ammonium nitrate-based airbag inflators,” said Acting Assistant Attorney General Blanco. “Takata abused the trust of both its customers and the public by allowing airbag inflators to be put in vehicles knowing that the inflators did not meet the required specifications. Today’s sentence shows that the department will work tirelessly to hold responsible those who engage in this type of criminal conduct.”

“We hope that today's guilty plea and sentence will send a message to suppliers of consumer safety products that they must put safety ahead of profits,” said U.S. Attorney McQuade.

“The commission of fraudulent activity by the Takata Corporation to generate corporate profits jeopardized the safety of American consumers,” said Special Agent in Charge Gelios. “Today's guilty plea should reassure American consumers that the FBI and its federal law enforcement partners will aggressively pursue corporations and their employees when they violate federal laws.”

“Today’s sentencing of Takata Corporation for wire fraud related to sales of defective airbag inflators is a clear signal to all whose duty it is to protect the public: your most solemn obligation is to public safety,” said Regional Special Agent in Charge Ullom. “As is true for Secretary Chao and the Department of Transportation, safety is and will remain the highest priority for OIG, and we remain committed to working with our law enforcement and prosecutorial partners in pursuing those who commit criminal violations of transportation-related laws and regulations.”

Takata pleaded guilty before U.S. District Judge George Caram Steeh, in the Eastern District of Michigan, to a one count criminal information charging the company with wire fraud. After accepting Takata’s guilty plea, Judge Steeh, consistent with the terms of the plea agreement, sentenced Takata to pay a total criminal penalty of $1 billion, including $975 million in restitution and a $25 million fine and three years’ probabtion. Under a joint restitution order entered at the time of sentencing, two restitution funds will be established: a $125 million fund for those individuals who have been physically injured by Takata’s airbags and who have not already reached a settlement with the company, and a $850 million fund for airbag recall and replacement costs incurred by those auto manufacturers who were victims of Takata’s fraud scheme. A court-appointed special master will oversee administration of the restitution funds. Takata will also implement rigorous internal controls, retain an independent compliance monitor for a term of three years and cooperate fully with the department’s ongoing investigation, including its investigation of individuals.

According to admissions made during the course of the guilty plea, from 2000 through and including 2015, Takata carried out a scheme to defraud its customers and auto manufacturers by providing false and manipulated airbag inflator test data that made the performance of the company’s airbag inflators appear better than it actually was. Even after the inflators began to experience repeated problems in the field – including ruptures causing injuries and deaths – Takata executives continued to withhold the true and accurate inflator test information and data from their customers.

The FBI and the U.S. Department of Transportation’s Office of Inspector General investigated the case. Trial Attorneys Brian K. Kidd, Christopher D. Jackson and Andrew R. Tyler of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John K. Neal, Erin S. Shaw and Andrew J. Yahkind of the Eastern District of Michigan prosecuted the case. The Criminal Division’s Office of International Affairs also provided assistance.

 

Tokyo-based Takata Corporation, one of the world’s largest suppliers of automotive safety-related equipment, pleaded guilty to one count of wire fraud and was sentenced to pay a total of $1 billion in criminal penalties stemming from the company’s conduct in relation to sales of defective airbag inflators.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Barbara McQuade of the Eastern District of Michigan, Special Agent in Charge David Gelios of the FBI’s Detroit Field Office and Regional Special Agent in Charge Thomas J. Ullom of the U.S. Department of Transportation Office of Inspector General’s (OIG) Chicago Field Office made the announcement.

“For over a decade, Takata lied to its customers about the safety and reliability of its ammonium nitrate-based airbag inflators,” said Acting Assistant Attorney General Blanco.  “Takata abused the trust of both its customers and the public by allowing airbag inflators to be put in vehicles knowing that the inflators did not meet the required specifications.  Today’s sentence shows that the department will work tirelessly to hold responsible those who engage in this type of criminal conduct.”

“We hope that today's guilty plea and sentence will send a message to suppliers of consumer safety products that they must put safety ahead of profits,” said U.S. Attorney McQuade.  

“The commission of fraudulent activity by the Takata Corporation to generate corporate profits jeopardized the safety of American consumers,” said Special Agent in Charge Gelios.  “Today's guilty plea should reassure American consumers that the FBI and its federal law enforcement partners will aggressively pursue corporations and their employees when they violate federal laws.” 

“Today’s sentencing of Takata Corporation for wire fraud related to sales of defective airbag inflators is a clear signal to all whose duty it is to protect the public: your most solemn obligation is to public safety,” said Regional Special Agent in Charge Ullom.  “As is true for Secretary Chao and the Department of Transportation, safety is and will remain the highest priority for OIG, and we remain committed to working with our law enforcement and prosecutorial partners in pursuing those who commit criminal violations of transportation-related laws and regulations.”

Takata pleaded guilty before U.S. District Judge George Caram Steeh of the Eastern District of Michigan to a one count criminal information charging the company with wire fraud.  After accepting Takata’s guilty plea, Judge Steeh, consistent with the terms of the plea agreement, sentenced Takata to pay a total criminal penalty of $1 billion, including $975 million in restitution and a $25 million fine, and three years’ probabtion.  Under a joint restitution order entered at the time of sentencing, two restitution funds will be established: a $125 million fund for those individuals who have been physically injured by Takata’s airbags and who have not already reached a settlement with the company, and a $850 million fund for airbag recall and replacement costs incurred by those auto manufacturers who were victims of Takata’s fraud scheme.  A court-appointed special master will oversee administration of the restitution funds.  Takata will also implement rigorous internal controls, retain an independent compliance monitor for a term of three years and cooperate fully with the department’s ongoing investigation, including its investigation of individuals.

According to admissions made during the course of the guilty plea, from 2000 through and including 2015, Takata carried out a scheme to defraud its customers and auto manufacturers by providing false and manipulated airbag inflator test data that made the performance of the company’s airbag inflators appear better than it actually was. Even after the inflators began to experience repeated problems in the field – including ruptures causing injuries and deaths – Takata executives continued to withhold the true and accurate inflator test information and data from their customers.  

The FBI and the U.S. Department of Transportation’s Office of Inspector General investigated the case.  Trial Attorneys Brian K. Kidd, Christopher D. Jackson and Andrew R. Tyler of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John K. Neal, Erin S. Shaw and Andrew J. Yahkind of the Eastern District of Michigan prosecuted the case. The Criminal Division’s Office of International Affairs also provided assistance. 

The U.S. Attorney’s Office for the Eastern District of Michigan has reached a settlement with the Bangor Township School District in Bay City, Michigan, to resolve allegations that the school district violated the Americans with Disabilities Act by refusing to allow a student with disabilities to use his service dog in school, U.S. Attorney Barbara L. McQuade announced today.

 

The service dog at issue alerts to the student’s seizures, and mitigates symptoms of his disabilities. The complaint alleged that the school district inappropriately delayed its decision on the parent’s request for the service dog to accompany the student, instead making the parent spend months responding to requests for unnecessary information and documentation.

 

Title II of the ADA prohibits discrimination on the basis of disability in public schools. Under the ADA, public schools must generally modify policies, practices or procedures to permit the use of a service dog by a student with a disability at school and school-related activities. In addition, a public entity may make only two inquiries to determine whether a dog qualifies as a service animal: (1) whether the dog is required because of a disability, and (2) what work or task the dog has been trained to perform. A public entity shall not require documentation, such as proof that the dog has been certified, trained or licensed as a service animal. Nor shall a public entity ask or require an individual with a disability to pay a surcharge for using a service animal.

 

The school district worked cooperatively with the U.S. Attorney’s Office throughout the investigation.

 

Under the agreement, the school district will adopt an ADA-compliant service animal policy and provide training to staff and School Board Members on the school district’s obligations under Title II of the ADA, including requirements related to service dogs.

 

“Use of service animals has evolved beyond simply serving as guide dogs for individuals who are blind, McQuade said. "Service animals now perform a wide range of tasks that can help individuals with disabilities lead fuller lives. This settlement will help ensure that students who use service animals can fully access all of the educational opportunities to which they are entitled, and we commend the Bangor Township School District for recognizing the rights of this student and others who will follow.”

 

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 public entities schools 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. 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 Justice Department today announced a settlement with the city of  Sterling Heights, Michigan to resolve allegations that the city violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) in denying approval to allow the American Islamic Community Center, Inc. (AICC) to build a mosque in the city.

The settlement, which must still be approved by the U.S. District Court for the Eastern District of Michigan, resolves a lawsuit the department filed in December 2016.  A separate settlement resolving a similar lawsuit brought by the AICC against the city has also been submitted to the court for approval.

The United States alleged that Sterling Heights discriminated against the AICC on the basis of religion when it denied the application to build a mosque.  It further alleged that the denial imposed a substantial burden on the AICC’s religious exercise.  The AICC, currently located in Madison Heights, Michigan, sought to build in Sterling Heights because the location is more convenient for its members and its current space has become inadequate for its religious, educational and social needs.

As part of the settlement, the city has agreed to permit the AICC to construct a mosque in the city.  The city has also agreed to publicize its non-discrimination policies and practices, undergo training on the requirements of RLUIPA, and report periodically to the Justice Department.  

“Federal law protects the right of faith communities to build places of worship without discrimination or unreasonable burdens on their religious exercise,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division.  “We commend the city of Sterling Heights for agreeing to approve the AICC’s mosque, so that it can serve its members and contribute to the surrounding community.” 
 
“The law protects people of all religions from discrimination or unnecessary obstacles when they seek to build a place of worship,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan.  “Thanks to this settlement, the AICC will be able to build a mosque where its members can gather for religious and community events.  I grew up in Sterling Heights, and I am proud that the city is taking steps to protect the religious rights of all of its residents.”

The case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office of the Eastern District of Michigan. 

RLUIPA, enacted in 2000, prohibits religious discrimination and protects against unjustified burdens on religious exercise in, among other things, land use and zoning decisions. People who believe they were subjected to religious discrimination in land use or zoning may contact the Housing and Civil Enforcement Section at 1-800-896-7743 or the U.S. Attorney’s Office of the Eastern District of Michigan’s Civil Rights Hotline at (313) 226-9151 or usamie.civilrights@usdoj.gov.

More information about RLUIPA, including a report on the department’s enforcement, may be found at www.justice.gov/crt/religious-land-use-and-institutionalized-persons-act.

Sterling Heights Consent Order

The Justice Department today announced a settlement with the city of Sterling Heights, Michigan to resolve allegations that the city violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) in denying approval to allow the American Islamic Community Center, Inc. (AICC) to build a mosque in the city.

 

The settlement, which must still be approved by the U.S. District Court for the Eastern District of Michigan, resolves a lawsuit the department filed in December 2016. A separate settlement resolving a similar lawsuit brought by the AICC against the city has also been submitted to the court for approval.

 

The United States alleged that Sterling Heights discriminated against the AICC on the basis of religion when it denied the application to build a mosque. It further alleged that the denial imposed a substantial burden on the AICC’s religious exercise. The AICC, currently located in Madison Heights, Michigan, sought to build in Sterling Heights because the location is more convenient for its members and its current space has become inadequate for its religious, educational and social needs.

 

As part of the settlement, the city has agreed to permit the AICC to construct a mosque in the city. The city has also agreed to publicize its non-discrimination policies and practices, undergo training on the requirements of RLUIPA, and report periodically to the Justice Department.

 

“Federal law protects the right of faith communities to build places of worship without discrimination or unreasonable burdens on their religious exercise,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “We commend the city of Sterling Heights for agreeing to approve the AICC’s mosque, so that it can serve its members and contribute to the surrounding community.”

 

“The law protects people of all religions from discrimination or unnecessary obstacles when they seek to build a place of worship,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “Thanks to this settlement, the AICC will be able to build a mosque where its members can gather for religious and community events. I grew up in Sterling Heights, and I am proud that the city is taking steps to protect the religious rights of all of its residents.”

 

The case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office of the Eastern District of Michigan.

 

RLUIPA, enacted in 2000, prohibits religious discrimination and protects against unjustified burdens on religious exercise in, among other things, land use and zoning decisions. People who believe they were subjected to religious discrimination in land use or zoning may contact the Housing and Civil Enforcement Section at 1-800-896-7743 or the U.S. Attorney’s Office of the Eastern District of Michigan’s Civil Rights Hotline at (313) 226-9151 or usamie.civilrights@usdoj.gov.

 

More information about RLUIPA, including a report on the department’s enforcement, may be found at www.justice.gov/crt/religious-land-use-and-institutionalized-persons-act.