Eastern District of Michigan

An associate of the Vice Lords street gang pleaded guilty today to witness tampering for obtaining and disclosing private health information of Vice Lords shooting victims and victims’ family members to a member of the gang.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade 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, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Chief James Craig of the Detroit Police Department made the announcement.

Jamerio Clark, aka Merio, 27, of Detroit, pleaded guilty to tampering with a witness, victim or informant before U.S. District Judge David M. Lawson of the Eastern District of Michigan.  Clark is scheduled to be sentenced on Jan. 18, 2017.

"Protecting victims and witnesses is our highest priority," McQuade said. "Stealing personal information to facilitate witness intimidation is a serious crime that undermines our criminal justice system."

"The pursuit of these violent criminals is accomplished best through sustained, proactive and coordinated investigations of the FBI's Violent Gang Safe Streets Task Force which is comprised of our federal, state, and local law enforcement partners", said David P. Gelios, Special Agent in Charge, Detroit Division of FBI. "Through our unified efforts, we are increasingly disrupting the ability of gangs to commit crimes of violence and a variety of other crimes routinely committed in the furtherance of their criminal enterprises."

S. Robin Shoemaker, Special Agent in Charge of the Detroit Field Division of ATF said, “Countering firearms violence, particularly when it relates to violent street gangs remains one of ATF’s primary missions, when it comes to gun violence ATF will continue to work hand in hand with our Detroit One partners to ensure that those individuals’ who engage in violent criminal activity are removed from our neighborhoods.”

According to admissions made by others who have pleaded guilty in this case, the Vice Lords is a national gang engaged in a variety of crimes, and Vice Lords’ leaders are located in both Chicago and Detroit.  The gang is broken down into various “sets,” “decks,” or “branches,” including the Detroit-based Traveling Vice Lords (TVL).  The Vice Lords have often targeted members who sought to leave the gang for physical beatings or murder. 

Jamerio Clark admitted that from May 8, 2015, through at least January 2016, he was employed at a medical facility where he had access to a private database that contained individually identifiable health information for anyone who had been treated at a Detroit Medical Center facility.  At Antonio Clark’s request and while employed at the medical facility, Jamerio Clark accessed this database on at least 15 occasions to search for three TVL shooting victims, he admitted.  According to the plea agreement, Jamerio Clark then provided information, including dates of birth, phone numbers, addresses and information pertaining to relatives of these individuals, to Antonio Clark.  Jamerio Clark admitted that he knew his brother wanted this information to locate these individuals and prevent them from cooperating in the investigation and prosecution of the TVL shooting.

Eight members and leaders of the TVL have pleaded guilty to charges related to the shooting, six of whom have been sentenced: Antonio Clark, 26, of Detroit, was sentenced to 240 months in prison; Aramis Wilson, 25, of Detroit, was sentenced to 150 months in prison; Dion Robinson, 38, of Detroit, was sentenced to 121 months in prison; Jonathan Kinchen, 23, of Detroit, was sentenced to 120 months in prison; Tyrone Price, 27, of Detroit, was sentenced to 140 months in prison; and Kojuan Lee, 20, of Detroit, was sentenced to 97 months in prison.

The charges and convictions related to the TVL shooting 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 dozens of Vice Lords leaders and members over the last few years.  In two trials during March and May 2015, juries convicted eight leaders and members of the Phantom Outlaw Motorcycle Club, many of whom were also leaders and members of the Vice Lords, for various crimes, including a mass-murder plot against a rival organization and the shooting of a member of another rival organization.  Among those convicted was Antonio Johnson, aka MT and Mister Tony, the National President of the Phantoms and the Three-Star General over all of the Vice Lords in Michigan.  On Sept. 8, 2015, Johnson was sentenced to 35 years in prison for racketeering conspiracy, murder conspiracy in aid of racketeering, assault with a dangerous weapon in aid of racketeering, aiding and abetting the use and carry of firearms during and in relation to a crime of violence and felon in possession of a firearm.

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 Vice Lords street gang, and identified the leaders and key members of the gang, who now have been held accountable.

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

The ATF, FBI and Detroit Police Department are investigating the case.  Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Mark Bilkovic of the Eastern District of Michigan are prosecuting the case.

An associate of the Vice Lords street gang pleaded guilty today to witness tampering for obtaining and disclosing private health information of Vice Lords shooting victims and victims’ family members to a member of the gang.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade 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, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Chief James Craig of the Detroit Police Department made the announcement.

Jamerio Clark, aka Merio, 27, of Detroit, pleaded guilty to tampering with a witness, victim or informant before U.S. District Judge David M. Lawson of the Eastern District of Michigan.  Clark is scheduled to be sentenced on Jan. 18, 2017.

According to admissions made by others who have pleaded guilty in this case, the Vice Lords is a national gang engaged in a variety of crimes, and Vice Lords’ leaders are located in both Chicago and Detroit.  The gang is broken down into various “sets,” “decks,” or “branches,” including the Detroit-based Traveling Vice Lords (TVL).  The Vice Lords have often targeted members who sought to leave the gang for physical beatings or murder. 

Jamerio Clark admitted that from May 8, 2015, through at least January 2016, he was employed at a medical facility where he had access to a private database that contained individually identifiable health information for anyone who had been treated at a Detroit Medical Center facility.  At Antonio Clark’s request and while employed at the medical facility, Jamerio Clark accessed this database on at least 15 occasions to search for three TVL shooting victims, he admitted.  According to the plea agreement, Jamerio Clark then provided information, including dates of birth, phone numbers, addresses and information pertaining to relatives of these individuals, to Antonio Clark.  Jamerio Clark admitted that he knew his brother wanted this information to locate these individuals and prevent them from cooperating in the investigation and prosecution of the TVL shooting.

Eight members and leaders of the TVL have pleaded guilty to charges related to the shooting, six of whom have been sentenced: Antonio Clark, 26, of Detroit, was sentenced to 240 months in prison; Aramis Wilson, 25, of Detroit, was sentenced to 150 months in prison; Dion Robinson, 38, of Detroit, was sentenced to 121 months in prison; Jonathan Kinchen, 23, of Detroit, was sentenced to 120 months in prison; Tyrone Price, 27, of Detroit, was sentenced to 140 months in prison; and Kojuan Lee, 20, of Detroit, was sentenced to 97 months in prison.

The charges and convictions related to the TVL shooting 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 dozens of Vice Lords leaders and members over the last few years.  In two trials during March and May 2015, juries convicted eight leaders and members of the Phantom Outlaw Motorcycle Club, many of whom were also leaders and members of the Vice Lords, for various crimes, including a mass-murder plot against a rival organization and the shooting of a member of another rival organization.  Among those convicted was Antonio Johnson, aka MT and Mister Tony, the National President of the Phantoms and the Three-Star General over all of the Vice Lords in Michigan.  On Sept. 8, 2015, Johnson was sentenced to 35 years in prison for racketeering conspiracy, murder conspiracy in aid of racketeering, assault with a dangerous weapon in aid of racketeering, aiding and abetting the use and carry of firearms during and in relation to a crime of violence and felon in possession of a firearm.

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 Vice Lords street gang, and identified the leaders and key members of the gang, who now have been held accountable.

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

The ATF, FBI and Detroit Police Department are investigating the case.  Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Mark Bilkovic of the Eastern District of Michigan are prosecuting the case.

The former director of the city of Detroit’s Office of Departmental Technology Services (DTS) pleaded guilty today for accepting more than $29,500 in bribe payments from two information technology companies providing services and personnel to the city of Detroit.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan and Special Agent in Charge David P. Gelios of the FBI’s Detroit Division made the announcement.

Charles L. Dodd Jr., 46, of Canton, Michigan, pleaded guilty to one count of federal program bribery before U.S. District Judge Robert H. Cleland of the Eastern District of Michigan.  Sentencing has been scheduled for Jan. 9, 2017.

According to admissions made in connection with today’s plea, Dodd has held numerous supervisory positions with the city of Detroit in which he exercised discretionary supervisory authority over a staff of dozens of city employees and contractors, and held substantial influence over the administration of multimillion-dollar contracts between the city of Detroit and private information technology companies.

Between 2009 and 2016, Dodd accepted cash payments totaling more than $15,000 and a trip to North Carolina, among other things of value, from an individual who was then the president and CEO of an information technology company, according to the plea agreement.  Dodd admitted that during that same time period, he also accepted more than $14,500 in cash payments from the CEO and an employee of another information technology company.  In return for these cash payments and other things of value, Dodd agreed to provide preferential treatment to the companies, he admitted.

The FBI’s Detroit Division investigated the case.  Trial Attorneys Robert J. Heberle and Nicholas Connor of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Bruce Judge of the Eastern District of Michigan are prosecuting the case.

A doctor who practiced in Warren, Michigan, agreed to pay $200,000 to resolve allegations that he violated the False Claims Act by writing prescriptions for oxycodone and other controlled medications without medical justification, and for billing for medical services without medical justification, announced U.S. Attorney Barbara L. McQuade.

From 2010 through early 2012, Hussein Awada, 46, conspired with patient “marketers” to write prescriptions for tens of thousands of dosages of oxycodone and other controlled medications for no medical purpose. Awada then used the patient data for the patients brought to him by the marketers to submit bills to Medicare for services that were either never performed or were medically unjustified. Awada caused these same patients to receive medically unnecessary monthly x-rays, and other invasive tests, to help conceal his fraud.

In a related criminal action, Awada previously pled guilty to prescribing 80,000 dosages of oxycodone and Roxicodone for no legitimate medical reason, and he admitted to defrauding Medicare, Medicaid, and Blue Cross Blue Shield of about $2.3 million. Awada was sentenced to 84 months in prison and was ordered to pay $2.3 million in restitution. To help pay the restitution, Awada was ordered to forfeit assets. To settle his civil liability under the False Claims Act, Awada agreed to pay an additional $200,000.

The allegations in the civil False Claims Act suit were brought to the government by a whistleblower, known as a relator, under the qui tam provisions of the False Claims Act. The relator, Heather Henson, worked as a receptionist for Awada at his medical practice Midwest Family Practice, PLC during a six-month period from 2010 to 2011. Henson will receive $36,000 out of the $200,000 settlement, as well as a portion of the assets Awada forfeits, for her role in filing the qui tam action.

"Prescription pain pills like oxycodone are controlled substances because their abuse can lead to addiction, illness and death,” McQuade said. “This settlement demonstrates that doctors pay a substantial price when they seek to profit by prescribing medically unnecessary prescription drugs and services that may harm their patients."

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.

The case is captioned as United States ex rel. Henson v. Midwest Family Practice, PLC et al., Case No. 2:13-cv-14579 (E.D. Mich.). The related criminal action is captioned as United States v. Awada, Case No. 2:12-cr-20595 (E.D. Mich.).

A physician who practiced in Detroit, Michigan, was sentenced to 12 months and one day in prison today for writing prescriptions for oxycodone and other controlled medications without medical justification, announced U.S. Attorney Barbara L. McQuade. 

McQuade was joined in the announcement by Special Agent Timothy Plancon, Drug Enforcement Administration, Detroit Division.

Lauran Bryan, 57, a plastic surgeon living in Farmington Hills, Michigan, was sentenced by U.S. District Judge Matthew Leitman in Detroit, Michigan.

From 2011 through 2015, Bryan wrote prescriptions for tens of thousands of oxycodone and other controlled medications for patients, some of whom she knew to be addicted to the drugs, for no legitimate medical reason. She also wrote prescriptions in the names of associates of her patients, knowing that the associates would provide the pills to the addicted patients.

Bryan’s unlawful prescribing was somewhat unusual, in that her motive appears to have been to keep traffic coming to her struggling plastic surgery practice, rather than simply to sell opioid prescriptions for cash profit.

United States Attorney McQuade said, “Doctors who divert drugs to the street market are contributing to the overdose epidemic that kills 44 people every day in the United States.  We are focusing our efforts on bringing corrupt doctors and pharmacists to justice.”

A former Ypsilanti man was sentenced today to 35 years in federal prison after having pleaded guilty to production of child pornography involving a three-year-old victim and committing an enumerated sex offense against a child while being subject to the sex offender register, announced United States Attorney Barbara L. McQuade.  Following his time in prison, Vaughn will spend the rest of his life on supervised release. 

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

Matthew Leon Vaughn,33, was sentenced by United States District Judge Nancy G. Edumunds.   

According to court records, FBI agents in Alaska began investigating Vaughn as part of a group of individuals who obtained child pornography from a shared cloud storage system.  The Alaska investigation led to the identification of Vaughn, who at the time lived in Ypsilanti, Michigan.  The Detroit FBI searched Vaughn’s Ypsilanti apartment, recovering several pieces of computer media.  A forensic analysis of that computer media revealed a vast collection—more than 30,000 images and 3,000 videos—of child pornography.  An FBI agent in Detroit dug through Vaughn’s collection, eventually identifying child pornographic images Vaughn took inside that Ypsilanti apartment of a three-year-old girl that had been in Vaughn‘s care.  Vaughn was arrested by the FBI in Toledo, Ohio, where he had moved after the execution of the Ypsilanti search warrant.   

In 2003, Vaughn was convicted in state court for possession of child pornographic material.  As a result of that conviction, Vaughn had been a registered sex offender when he produced child pornography in Ypsilanti.   

“I continue to be astonished by the prevalence and severe nature of child exploitation cases." McQuade said. "We are very grateful for the dedication of agents and prosecutors who work to rescue children from the predators who abuse them." 

“As both an FBI Special Agent and father, I find the actions of this young victim’s family member to be of the most heinous one could imagine”, said David P. Gelios, Special Agent in Charge of the Detroit Division.  “Children are among the most vulnerable and innocent victims of crimes. These types of crimes are sometimes perpetrated by relatives, caretakers and others who are considered to be responsible adults in their lives. The FBI considers the investigation and prosecution of sexual predators who commit crimes against children, one of its top priorities”.

This case was investigated by the Federal Bureau of Investigation in Alaska, Detroit, and Toledo, Ohio, and prosecuted by Assistant United States Attorney Kevin M. Mulcahy. 

A Fairbury, Nebraska man was sentenced today to 35 years’ in federal prison for his participation in a child exploitation enterprise, United States Attorney Barbara L. McQuade announced.

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

Sentenced was Brandon L. Hennerberg, age 31.  Hennerberg was sentenced by U.S. District Court Judge Richard G. Kopf in Lincoln, Nebraska.  He was originally charged, along with five co-defendants, in the Eastern District of Michigan in a 28-count indictment with the crimes of child exploitation enterprise, numerous counts of conspiracy to produce child pornography, conspiracy to receive and access with intent to view child pornography, and aiding and abetting online enticement.  Hennerberg pleaded guilty to one count of child exploitation enterprise, carrying a 20-year mandatory minimum sentence, on June 21, 2016.

The investigation determined that from at least January of 2014 to February of 2016, Hennerberg was a member of a group of individuals that worked together online to entice minor females to produce child pornography.  The group members created fraudulent social media accounts posing as teenagers. Using the assumed identities, group members searched social media websites and engaged minor females, specifically targeting 10 to 14 year-old girls, in conversation using internet chat and video applications. The group members worked together for hours and sometimes even days to deceive their victims and convince them to undress and engage in sexually explicit activity live on webcamera, which the group members recorded. 

The group members used an elaborate scheme to entice, coerce, and deceive their victims.  Each group member had at least one role, although at times a group member would play more than one role or switch from one role to another.  The “hunters” visited social media websites commonly used by minors to locate minors and bring them back to the other group members.  The “talkers” were primarily responsible for conversing with the minors.  They asked the minors to do “dares” which escalated into sexual activity.  If a victim was suspicious of the group members or reluctant to engage in sexual activity, the “loopers” would then play a previously recorded video of a minor engaged in sexual activity, pretending to be that minor, in order to convince the victim to engage in the same type of activity.  Meanwhile, the “watchers” in the group were in charge of ensuring that no suspected law enforcement members or unwanted persons were present.

The group victimized at least 100 minor girls, most of whom have yet to be identified. If you have any information to help identify victims of this online conspiracy, fill out the FBI’s confidential survey at fbi.gov/sextortion or contact the National Center for Missing and Exploited Children (NCMEC) at www.missingkids.com. A confidential email can also be sent to FBI.VICTIMASSISTANCE@ic.fbi.gov. Or call 1-800-CALL-FBI FREE (225-5324).

Co-defendants Virgil Napier, Jr. and John Garrison entered guilty pleas in June and July respectively and are currently scheduled to be sentenced in October by U.S. District Court Judge Judith E. Levy in Ann Arbor, Michigan. Co-defendants Justin Fuller, Thomas Dougherty and Dantly Nicart cases are at various stages in the proceedings. 

This case was investigated by the Federal Bureau of Investigation’s Southeast Michigan Trafficking and Exploitation Crimes Task Force and prosecuted by Assistant U.S. Attorneys April Russo and Sara Woodward.

A 22-year-old Dearborn Heights man pleaded guilty today to charges of making a false statement to acquire a firearm and possession of a firearm by a prohibited person, United States Attorney Barbara L. McQuade announced today. 

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

Khalil Abu-Rayyan pleaded guilty before United States District Judge George Caram Steeh in Detroit. 

According to court records, on October 5, 2015, Khalil Abu-Rayyan purchased a .22 caliber revolver from a sporting goods store in Dearborn Heights.  At the time of purchase, Abu-Rayyan made a false statement on ATF Form 4473, stating “no” in response to a question that asks whether the purchaser is an unlawful user of a controlled substance.  On November 15, 2015, Abu-Rayyan attempted to purchase another pistol from a different sporting goods store.  However, due to pending state charges, was unable to purchase the pistol.  On that occasion, Abu-Rayyan again falsely stated on ATF Form 4473 that he was not an unlawful user of a controlled substance.  Abu-Rayyan subsequently admitted to law enforcement that he was an habitual user of marijuana during the time period in which he purchased the .22 caliber revolver.  Abu-Rayyan has also since pleaded guilty to possession of marijuana in the state case, and is currently awaiting trial in state court on the charge of carrying a concealed weapon in an automobile.   

According to the criminal complaint, photographs and postings on Abu-Rayyan's social media sites, 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 his desire to conduct a martyrdom operation, including with the use of firearms.

Abu-Rayyan was arrested on February 4, 2016, by FBI agents and remains in custody pending his sentencing which has been scheduled for January 9, 2017.  Abu-Rayyan faces a term of up 20 years in federal prison.

James Robert Liang, a Volkswagen engineer, pleaded guilty today for his role in a nearly 10-year conspiracy to defraud U.S. regulators and U.S. Volkswagen customers by implementing software specifically designed to cheat U.S. emissions tests in hundreds of thousands of Volkswagen “clean diesel” vehicles, the Justice Department announced today.  Liang’s plea agreement provides that he will cooperate with the government in its ongoing investigation.

Liang, 62, of Newbury Park, California, pleaded guilty today to one count of conspiracy to defraud the United States, to commit wire fraud and to violate the Clean Air Act.  He was indicted under seal on June 1, 2016, by a federal grand jury, and the indictment was unsealed today.  The case has been assigned to U.S. District Judge Sean F. Cox of the Eastern District of Michigan. 

According to the plea agreement, from 1983 until May 2008, Liang was an employee of Volkswagen AG (VW), working in its diesel development department in Wolfsburg, Germany.  Liang admitted that beginning in about 2006, he and his co-conspirators started to design a new “EA 189” diesel engine for sale in the United States.  According to Liang’s admissions, when he and his co-conspirators realized that they could not design a diesel engine that would meet the stricter U.S. emissions standards, they designed and implemented software to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer or being driven on the road under normal driving conditions (the defeat device), in order to cheat the emissions tests.  Liang admitted that he used the defeat device while working on the EA 189 and assisted in making the defeat device work.  In May 2008, Liang moved to the United States to assist in the launch of VW’s new “clean diesel” vehicles in the U.S. market, according to the plea agreement.  While working at VW’s testing facility in Oxnard, California, he has held the title of Leader of Diesel Competence.

According to the plea agreement, employees of VW and its U.S. subsidiary met with the EPA and the California Air Resources Board (CARB) to seek the certifications required to sell each model year of its vehicles to U.S. customers.  Liang admitted that during some of these meetings, which he personally attended, his co-conspirators misrepresented that VW diesel vehicles complied with U.S. emissions standards and hid the existence of the defeat device from U.S. regulators.

As part of the certification process for each new model year, including model years 2009 through 2016, the co-conspirators continued to falsely and fraudulently certify to EPA and CARB that VW diesel vehicles met U.S. emissions standards and complied with the Clean Air Act, according to the plea agreement.  Liang admitted that during this time, he and his co-conspirators knew that VW marketed its diesel vehicles to the U.S. public as “clean diesel” and environmentally-friendly, and promoted the increased fuel economy.  Liang and his co-conspirators knew that these representations were false and that VW’s diesel vehicles were not “clean,” he admitted.

In connection with pleading guilty, Liang admitted that he helped his co-conspirators continue to lie to the EPA, CARB and VW customers even after the regulatory agencies started raising questions about the vehicles’ on-road performance following an independent study commissioned by the International Council on Clean Transportation, which showed that the diesel vehicles’ emissions on the road were up to 40 times higher than shown on the dynamometer.

The FBI’s Detroit Office and EPA-CID are investigating the case.  Deputy Chief Benjamin D. Singer and Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section, Trial Attorney Jennifer L. Blackwell of the Environment and Natural Resources Division, and Criminal Division Chief Mark Chutkow and Economic Crimes Unit Chief John K. Neal of the U.S. Attorney’s Office of the Eastern District of Michigan are prosecuting the case.  

James Robert Liang, a Volkswagen engineer, pleaded guilty today for his role in a nearly 10-year conspiracy to defraud U.S. regulators and U.S. Volkswagen customers by implementing software specifically designed to cheat U.S. emissions tests in hundreds of thousands of Volkswagen “clean diesel” vehicles, the Justice Department announced today.  Liang’s plea agreement provides that he will cooperate with the government in its ongoing investigation.

Liang, 62, of Newbury Park, California, pleaded guilty today to one count of conspiracy to defraud the United States, to commit wire fraud and to violate the Clean Air Act.  He was indicted under seal on June 1, 2016, by a federal grand jury, and the indictment was unsealed today.  The case has been assigned to U.S. District Judge Sean F. Cox of the Eastern District of Michigan.  

According to the plea agreement, from 1983 until May 2008, Liang was an employee of Volkswagen AG (VW), working in its diesel development department in Wolfsburg, Germany.  Liang admitted that beginning in about 2006, he and his co-conspirators started to design a new “EA 189” diesel engine for sale in the United States.  According to Liang’s admissions, when he and his co-conspirators realized that they could not design a diesel engine that would meet the stricter U.S. emissions standards, they designed and implemented software to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer or being driven on the road under normal driving conditions (defeat device), in order to cheat the emissions tests.  Liang admitted that he used the defeat device software while working on the EA 189 and assisted in making the defeat device software work.  In May 2008, Liang moved to the United States to assist in the launch of VW’s new “clean diesel” vehicles in the U.S. market, according to the plea agreement.  While working at VW’s testing facility in Oxnard, California, he has held the title of Leader of Diesel Competence.

According to the plea agreement, employees of VW and its U.S. subsidiaries met with the EPA and the California Air Resources Board (CARB) to seek the certifications required to sell each model year of its vehicles to U.S. customers.  Liang admitted that during some of these meetings, which he personally attended, his co-conspirators misrepresented that VW diesel vehicles complied with U.S. emissions standards and hid the existence of the defeat device from U.S. regulators.

As part of the certification process for each new model year, including model years 2009 through 2016, the co-conspirators continued to falsely and fraudulently certify to EPA and CARB that VW diesel vehicles met U.S. emissions standards and complied with the Clean Air Act, according to the plea agreement.  Liang admitted that during this time, he and his co-conspirators knew that VW marketed its diesel vehicles to the U.S. public as “clean diesel” and environmentally-friendly, and promoted the increased fuel economy.  Liang and his co-conspirators knew that these representations were false and that VW’s diesel vehicles were not “clean,” he admitted.

In connection with pleading guilty, Liang admitted that he and his co-conspirators continued to lie to the EPA, CARB and VW customers even after the regulatory agencies started raising questions about the vehicles’ on-road performance following an independent study commissioned by the International Council on Clean Transportation, which showed that the diesel vehicles’ emissions on the road were up to 40 times higher than shown on the dynamometer.

The FBI’s Detroit Office and EPA-CID’s Chicago Area Office are investigating the case.  Deputy Chief Benjamin D. Singer and Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section, Trial Attorney Jennifer L. Blackwell of the Environment and Natural Resources Division, and Criminal Division Chief Mark Chutkow and Economic Crimes Unit Chief John K. Neal of the U.S. Attorney’s Office of the Eastern District of Michigan are prosecuting the case. 

 

A former Detroit Public Schools (DPS) vendor and former Assistant Superintendent of Specialized Student Services were sentenced today for their roles in an illegal bribery and kickback scheme, announced U.S. Attorney Barbara L. McQuade.

Joining McQuade 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.

Norman Shy, 74, of Franklin received a sentence of 60 months and Clara Flowers, 61, of Detroit received a sentence of 36 months.  Both were sentenced before U.S. District Judge Victoria Roberts.  Both pleaded guilty in May to charges of conspiracy to defraud the United States and tax evasion.

According to court records, Shy, the owner of Allstate Sales, a DPS vendor of school supplies, conspired with 13 school officials to submit fraudulent invoices, causing DPS to pay Shy for goods that were never delivered.  Invoiced supplies included auditorium chairs, supplemental teaching materials and raised line paper.  In exchange, Shy paid bribes and kickbacks to the school officials, using a portion of the payments he received from DPS from the fraudulent invoices. The scheme began in 2002 and continued until January 2014. 

DPS principals had the primary authority for selecting vendors from a list approved by DPS and for certifying that invoiced goods were received. 

In return for selecting Shy as a vendor and approving fraudulent invoices, Flowers accepted bribes and kickbacks in various forms, including prepaid gift cards and checks payable directly to her travel agency business and contractors who performed work on her home.  In total, Shy paid Flower’s approximately $324,785. 

The total amount of bribes and kickbacks that Shy paid to the 13 school officials was approximately $908,518. In exchange, Shy received approximately $2.7 million  from DPS based on payments for fraudulent invoices.

“We hope that these sentences will deter anyone who thinks that they can take advantage of a large public institution like the Detroit Public Schools,” McQuade said.  “We will hold accountable anyone who steals funds intended for our school children.  If there is a message here, it is that someone is watching, you will get caught and you will go to prison.”

“Today’s sentencing should serve as a impactful reminder that the FBI will not stand by idly when those in the field of education violate the public’s trust for their own personal gain.  The misapplication of already scarce public funds is not only illegal, but an insult to those dedicated educators working every day to make a better future for our children” said David P. Gelios, Special Agent in Charge, FBI Detroit Division

Three Flint residents pleaded guilty to tampering with a witness by physical force to prevent the witness from testifying in a federal criminal case, U.S. Attorney Barbara L. McQuade announced today.

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

Pleading guilty were Christopher Blackwell, 27, Lawrence Christopher Davis, 22, and Lezlye Taylor, 22.  The defendants entered their pleas before U.S. District Judge Terrence G. Berg in Flint.

According to court documents, in July 2014, Blackwell received a telephone call from an incarcerated man facing trial who stated that witnesses were cooperating against him.  During their telephone conversation, Blackwell promised to prevent one of the witnesses from cooperating.  On July 26, 2014, Taylor met up with the witness and informed Blackwell of the witness’s location as the two were leaving a building together.  When the victim left the building, Blackwell and Davis shot him in both legs. Sixteen days after the shooting, law enforcement officers recovered one of the firearms used to shoot at the victim when Davis discarded it from his vehicle.

“Intimidation and harm to witnesses contribute to the ‘no snitch’ philosophy, which prevents people from reporting crimes,” McQuade said.  “We will do all we can to protect witnesses in criminal cases, including prosecuting anyone who attempts to harm a witness.”

“Attempting to obstruct justice through threats or actual violence, especially when a witness to a crime is involved, is a very serious offense” said David P. Gelios, Special Agent in Charge, FBI Detroit Division, “The FBI places a premium on ensuring the personal safety and protection of all witnesses of crimes.”

Sentencing for Davis is scheduled for December 1.  Sentencing for Taylor is set for December 15 and sentencing for Blackwell is scheduled for January 19, 2017.  Each face a statutory maximum penalty of 30 years in prison.

The case was investigated by special agents of the FBI.  The case is being prosecuted by an Assistant United States Attorney from the Flint Branch of the United States Attorney’s Office. 

A superseding indictment was returned yesterday adding new criminal charges against 13 Detroit-area men accused of conspiring to distribute heroin, crack cocaine and other drugs, U.S. Attorney Barbara L. McQuade announced today.  Nine of the defendants were charged with distributing fentanyl and heroin resulting in overdose death and serious bodily injury.

Joining McQuade in the announcement were Special Agent in Charge Timothy J. Plancon, Drug Enforcement Administration, Detroit Division, and Police Commissioner Jere Green, Warren Police Department and Mayor James R. Fouts, City of Warren.

The drug-trafficking organization, known as the ”Polo” organization, became the focus of investigation beginning in March, when heroin distributed by the group was connected to a spike in overdose deaths. 

Charged were Demarco Tempo, 27 (also known as “Polo”) of Warren; Haratio Heard, 25; Juwan Allen, 22; Darius Gordon, 25; Alvin Coates, 21; Javon Brown, 25; Greg Howard, 20; Dennis Jones, 21; Amacio Alexander, 39; Marcus Gilbert, 22; Kenneth Sadler, 28; Darreyl Coneal, 28; and Randy Stewart, 25, all from Detroit.  All were charged with conspiracy to distribute and to possess with intent to distribute controlled substances, including heroin, crack cocaine, powder cocaine and fentanyl.  Defendants Tempo, Heard, Allen, Gordon, Coates, Brown, Howard, Jones and Gilbert were charged in the conspiracy with distribution of heroin and fentanyl where death and serious bodily harm occurred to multiple victims.  Some of the defendants were also charged with substantive counts of drug distribution.  Tempo was charged with distribution of heroin and fentanyl resulting in the death of one victim.  Tempo, Gordon and Coats were also charged with distributions of heroin and fentanyl resulting in serious bodily injury to three other victims.  The law defines serious bodily injury as an injury that involves a substantial risk of death.  The charges of distribution causing death or serious bodily injury, or the conspiracy to commit the offence each carry a mandatory minimum penalty of 20 years’ imprisonment. 

Tempo, Heard, Allen, Gordon, Brown, Howard, Jones, and Alexander were also charged with conspiring to possess firearms in furtherance of the drug-trafficking conspiracy.  Sadler was charged with being a felon in possession of a firearm.

"Overdose deaths from heroin and fentanyl are becoming a national epidemic, including here in Michigan, as people addicted to prescription pills become desperate to feed their addictions," McQuade said.  "Law enforcement agencies are banding together to prosecute traffickers who are exploiting these addictions and risking lives for profit."

DEA Special Agent in Charge Plancon said, “It is a priority of DEA to identify and investigate those who distribute drugs that result in overdose and death.  The charges announced today should make it clear to all drug dealers that they will face consequences, for the harm that they inflict on the user and on society.  The Warren Police Department deserves significant credit for devoting the time and effort needed to successfully investigate and bring these individuals to prosecution.

Mayor Fouts stated, “I would like to highly commend both the Warren Police Special Investigations Unit and the DEA for their hard work and dedication in this investigation which led to the grand jury indictment charging the leader of a drug trafficking organization with the death and overdoses of four victims. This initiative was started by the Warren Police from my request to Commissioner Jere Green to institute a massive drug bust against this drug trafficking organization following the OD deaths of seven Warren residents earlier this year.”

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

This investigation was led by the Warren Police Department’s Special Investigations Division, in partnership with the Drug Enforcement Administration.  The case is being prosecuted by Assistant U.S. Attorney Benjamin Coats.

The Justice Department and the U.S. Attorneys’ Offices of the Eastern and Western Districts of Michigan today announced an agreement with the owners and operators of seven Michigan apartment complexes to resolve allegations that they discriminated against families with children in violation of the Fair Housing Act.

The lawsuit was filed on Nov. 19, 2015, in the U.S. District Court for the Eastern District of Michigan.  The lawsuit alleged that the defendants, including the rental manager Sudi Hopper, as well as the corporate entities that own the complexes, Parkside East Inc., Holt Manor Inc. and Kelly Manor Inc., discriminated against families with children by prohibiting them from renting one-bedroom units in the defendants’ apartment complexes.  The allegations were based on evidence generated by the Fair Housing Center of Southeastern Michigan, which had testers posing as prospective residents contact the defendants and ask to rent one-bedroom apartments.  Testers who said that they wanted to rent an apartment with their child were told that children were not allowed in one-bedroom units.  The Fair Housing Center filed a lawsuit, which was resolved separately.

Under the terms of the consent decree, which still must be approved by the court, the defendants will establish a settlement fund of $20,000 to compensate victims of their discriminatory practices.  The defendants will also pay $5,000 in civil penalties to the United States.  In addition, the defendants will eliminate the restrictions on children that they previously imposed at the seven complexes that they own and operate.  Those complexes are: Parkside East Apartments in East Lansing, Michigan; Holt Manor Apartments and C and H Apartments in Holt, Michigan; Kelly Manor Apartments in Owosso, Michigan; Camelot Apartments in Lansing, Michigan; Pine Cove Apartments in DeWitt, Michigan; and Park Place Apartments in Williamston, Michigan.  The agreement also requires that defendants inform tenants of their new nondiscriminatory policies and provide training on the Fair Housing Act to their staff and agents.

“Housing provides a critical foundation for economic security and opportunity,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “Families with children deserve access to housing that meets their needs without facing unlawful discrimination.  The Justice Department will continue to enforce the Fair Housing Act to ensure that families with children have the same rights to housing within their price range as people without children.”

“The law prohibits landlords from refusing to rent to people with children,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan.  “We commend the defendants in this case for agreeing to change their policies and pay damages to victims for their past discriminatory practices.  This settlement will further the goal of the Fair Housing Act to protect families from discrimination because they have children.”

“Adequate housing is a fundamental need for families and equal access to that housing must be protected,” said U.S. Attorney Patrick A. Miles Jr. of the Western District of Michigan.  “Our ongoing actions to enforce the Fair Housing Act provide that protection.”

This case was handled jointly by the Civil Rights Division’s Housing and Civil Enforcement Section and the U.S. Attorneys’ Offices of the Eastern and Western Districts of Michigan.

The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.  More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.  Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at fairhousing@usdoj.gov or contact HUD at 1-800-669-9777.  Residents of the Eastern District of Michigan can also contact 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.  Residents of the Western District of Michigan can contact the U.S. Attorney’s Office of the Western District of Michigan’s Civil Rights Hotline at 616-808-2004 or usamiw.civilrights@usdoj.gov.

Parkside East Consent Decree

United States Attorney Barbara McQuade today announced that her office has put together a team of specialists to assist former patients and family members of Dr. Farid Fata in completing the restitution claim form.   Fata was sentenced to 45 years in federal prison for providing medically unnecessary chemotherapy treatments to patients.  The government has seized approximately $11.9 million and is encouraging and reminding victims to file claims before the filing deadline of October 5, 2016.

The U.S. Attorney’s Office has been working with the Crimes Services Commission for the State of Michigan and a team of Certified Public Accountants (CPAs) and CPA organizations to offer assistance to victims at no charge.  The assistance will be provided starting on September 6, 2016 from 9:00 am – 5:00 pm, Monday-Friday and will take place at Common Ground, located at 1200 North Telegraph Road, Building 32 East, Pontiac, Michigan 48341.  While walk-ins will be accepted, victims are encouraged to schedule an appointment and can do so by calling the current Fata claims toll free number at 1-877-202-3282.  The toll free line will begin accepting calls to schedule appointments on Thursday, September 1 at 3:00pm.  Depending on the complexity of the claim victims will be assisted by either a victim advocate specialist or a CPA or both.

The U.S. Attorney’s Office would like to thank Director James McCurtis and Program Specialist Leslie O’Reilly of the Crimes Services Commission of Michigan, Mark Davidoff, CPA, Michigan managing partner Deloitte LLC, Marshall Hunt, Director of Tax Policy and Advocacy at the Accounting Aid Society and Jean Jernigan, Vice President of Business Development at the Michigan Association of CPAs for their assistance in this effort.

In addition, we have prepared two information sheets to help claimants understand how to complete the Claim Forms as efficiently as possible and to make the filing process easier.  Those can be accessed through the website www.fataclaims.com on the homepage.  The two documents are:

• How to Prove What Victim Paid or Owed
• Listing Multiple Expenses
•  

If you have questions about these documents, please call the phone staff at 1-877-202-3282.  You can also view and download copies of these documents on the website at www.fataclaims.com.  

We are also reminding victims that they can file claims for their out-of-pocket physical and mental health remedial treatments needed as a result of the treatment they received from Fata.  The last date you can be reimbursed for remedial treatment is September 6, 2016.  We are encouraging physicians who are currently treating former patients of Fata to sign the necessary forms regarding remediation in an effort to help victims pay for the cost of their treatment.

United States Attorney McQuade stated, “We recognize that the process of filling out a restitution claim form can be an extremely difficult process both emotionally and physically for victims and their families.  While no amount of money can restore what has been taken away by the actions of Fata, we hope that with the added assistance we can attempt to give back as much of the seized funds as we can.”

Attorney General Loretta E. Lynch announced today the appointment of U.S. Attorney Richard S. Hartunian for the Northern District of New York as chair of the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC).  Attorney General Lynch also appointed U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan to serve as vice chair.  Both appointments are effective immediately.

“The Attorney General’s Advisory Committee plays an essential role in shaping the Justice Department’s policies, implementing its programs, and ensuring that equal justice and the rule of law are upheld throughout the United States,” said Attorney General Lynch.  “As a former chair of the AGAC, I know firsthand the significant duties required of the committee’s leaders, and I am certain that U.S. Attorneys Richard Hartunian and Barbara McQuade are ready to assume the responsibility of chairing such an important and distinguished body.  They are both seasoned prosecutors, exemplary law enforcement officers, and devoted public servants, and I look forward to benefitting from their long experience and wise counsel as we advance the department’s vital work in the months ahead.  I congratulate them on their new posts, and I once again thank former U.S. Attorney John Walsh for his outstanding service as AGAC chair over the last 20 months.”

U.S. Attorney Hartunian has been the vice chair of the AGAC since January 2015.  He was appointed to the AGAC in 2013 and has served as the co-chair of the Border and Immigration Subcommittee, as well as a member of the subcommittees focused on Native American issues, Health Care Fraud and Environmental Crimes.  He has served as U.S. Attorney for the Northern District of New York since January of 2010.  Before that, he had been an Assistant U.S. Attorney there since 1997 and the district’s Narcotics Chief and Organized Crime Drug Enforcement Task Force Coordinator since 2006. 

U.S. Attorney Hartunian is a 1983 cum laude graduate of Georgetown University and a 1986 graduate of the Albany Law School of Union University.  He was engaged in the private practice of law in Albany from 1987 to 1990.  He served as an Assistant District Attorney in Albany County from 1990 to 1997, where his work on narcotics and violent crime cases led to his designation as a Special Assistant U.S. Attorney in 1994.

In May of 2010, U.S. Attorney Hartunian was honored by the Armenian Bar Association as the first U.S. Attorney of Armenian descent. 

U.S. Attorney McQuade was appointed to the AGAC in April 2013 and has previously served as co-chair of the Terrorism and National Security Subcommittee.  She also served on subcommittees addressing civil rights and border security.  She became the first woman to serve as U.S. Attorney for the Eastern District of Michigan when she took office in January of 2010.  She was an Assistant U.S. Attorney in Detroit, Michigan, for 12 years, including service as Deputy Chief of the National Security Unit. 

U.S. Attorney McQuade is a 1987 graduate of the University of Michigan and a 1991 graduate of the University of Michigan Law School.  Before becoming a federal prosecutor, she practiced law in a Detroit firm and served as a law clerk to a U.S. District Judge.  From 2003 to 2009, U.S. Attorney McQuade was as an adjunct law professor at the University of Detroit Mercy School of Law.

While U.S. Attorney McQuade replaces U.S. Attorney Hartunian as vice chair, U.S. Attorney Hartunian replaces former U.S. Attorney John Walsh for the District of Colorado as chair. 

The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the Attorney General on policy, management and operational issues impacting the offices of the U.S. Attorneys.

 

The U.S. Attorney’s Office for the Eastern District of Michigan today announced a settlement under the Americans with Disabilities Act (ADA) with the city of Ecorse, Michigan, to ensure accessibility for individuals with disabilities at all of the city’s polling places.  The case was commenced under the Justice Department’s compliance review authority. 

Under the terms of the settlement, the city of Ecorse will make temporary and permanent changes to all of its polling places to make them accessible on Election Day before the November 2016 election.  The settlement also requires that accessibility based on ADA standards will be a major criterion in the city’s selection of future polling places and so going forward, the city of Ecorse will select only polling place locations that are accessible on Election Day.  The city of Ecorse will also provide training to poll workers.

“The ADA requires that people with disabilities have an equal opportunity to cast their votes at their neighborhood polling place.  We are pleased that this agreement will ensure that the citizens of Ecorse can take an active part in our democracy.” said Barbara L. McQuade, U.S. Attorney for the Eastern District of Michigan.

Title II of the ADA prohibits public entities, such as the city of Ecorse, from discriminating against people with disabilities in their programs, services and activities.  With respect to polling places, public entities are required to select and use polling places that are accessible.  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 via the ADA website at http://www.ada.gov or the U.S. Attorney’s civil rights hotline at 313-226-9151.

A Monroe County man was sentenced today to more than 58 years in prison for producing child pornography documenting his own sexual assaults of young children, announced United States Attorney Barbara L. McQuade. 

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

Jason Wayne Soper, 34, was sentenced by U.S. District Judge Gerald E. Rosen. 

According to court records, Soper produced videos and images of his own sexual assaults of several children, ages three to seven years old.  Soper traded the images and videos he produced to other individuals over the Internet in exchange for pornographic images depicting infants and toddlers.  Soper distributed some of the images to an undercover FBI agent, which led to his identification, arrest and the rescue of multiple children.   Soper admitted to sexually assaulting several other children, and to having committed sexual assault crimes against two of the children for most of their lives.    

"Child predators who create child pornography victimize children twice, first by sexually assaulting them and again by sharing it with others on the Internet." McQuade said.  "We are grateful for the undercover work by the FBI in this case that led to the rescue of young children." 

"The depravity of this case shocks the conscience, and exemplifies the horrific and unspeakable crimes committed against the most vulnerable members in society, our youth” said David P. Gelios, Special Agent in Charge, FBI Detroit Division.  “The message should be clear:  Protecting our children from predators is a top priority of the FBI. We are committed to identifying those, like Soper, who sexually exploit children and working with the U.S. Attorney’s Office to seek the prosecution of those individuals to the fullest extent of the law.”

This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Kevin M. Mulcahy. 

A Dearborn, Michigan, man pleaded guilty to making false statements to federal agents involving terrorism, U.S. Attorney Barbara L. McQuade announced today.

McQuade was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

Mohammad Hassan Hamdan, 24, admitted at his plea hearing before U.S. District Judge Gerald E. Rosen that he knowingly lied to federal agents when he was arrested, prior to boarding his flight, at Detroit Metropolitan Airport on March 16, 2014.  Hamdan told federal agents that he was going to Lebanon “to get his teeth fixed.”  Hamdan also admitted that he had told an FBI confidential source that he was going to Lebanon to join Hezbollah, a designated foreign terrorist organization, so that he could fight with Hezbollah in Syria.

Evidence presented at a hearing revealed that prior to leaving to go to Lebanon, Hamdan had packed up all his possessions, gave his car to a family member and sold his house.

“It is illegal to lie to federal agents because false statements undermine their ability to investigate crime,” McQuade said.  “Here, Mr. Hamdan lied to cover up his intent to travel overseas to fight with Hezballah, a group that have been designated by the U.S. government as a terrorist organization.”

“This case highlights the significance of the investigative work being done by the FBI’s Joint Terrorism Task Force in Detroit,” stated David P. Gelios, Special Agent in Charge of the FBI Detroit Field Office. “As evidenced by his own admissions, Mohammad Hassan Hamdan took steps to travel to Lebanon to join the fight on behalf of Hezbollah in Syria. This investigation demonstrates the real threat of individuals residing in the United States who want to travel to Syria to fight on behalf of Hezbollah, a designated terrorist organization and threat to our national security.”

Hamdan is scheduled to be sentenced on November 14, 2016 at 2:00 p.m.

The case was investigated by special agents from the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ronald Waterstreet.

An Ontario man was sentenced today to 30 years in federal prison after having pleaded guilty to charges related to the sexual exploitation of two minor girls, announced United States Attorney Barbara L. McQuade. 

McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Field Office, and Chief Michael Patton of the West Bloomfield Police Department.

According to court records, from October through December 2013, Antonio P. Fontana, 59, coerced and enticed a 15-year-old girl (“Victim 1”) residing in the Eastern District of Michigan into performing various sexual acts for him in front of an Internet webcam on an almost daily basis. Fontana first began communicating with the victim on an Internet website, where he was posing as a 16-year-old boy. Fontana recorded many, if not all, of the sexual acts he forced Victim 1 to perform.  Fontana threatened to post the recordings of Victim 1 on the Internet and to send them to her friends and family if she did not continue to perform sexual acts for him.  When Victim 1 ultimately attempted to stop speaking to Fontana in late December 2013, Fontana continued to communicate with Victim 1 and her mother in an attempt to coerce Victim 1 into continuing to communicate.  At various times in January and February, 2014, Fontana followed through with his threats, and sent sexually explicit images of Victim 1 to Victim 1’s email contacts and her mother.

Fontana committed similar conduct from November to December 2014 with a second minor victim (“Victim 2”), a 14-year-old girl in the Eastern District of Michigan. Further investigation revealed that Fontana had similarly exploited children from all over the world, including several in the United States, Finland and England  

“This defendant used the internet to exploit and extort innocent children in the most humiliating way.  The bravery of the child in this case to come forward and report the perpetrator's conduct certainly prevented other children from being exploited this way.”

"Mr. Fontana hid behind the anonymity of the Internet to target and sexually exploit children in the most reprehensible of ways," stated David P.  Gelios, Special Agent in Charge of the FBI Detroit Field Office. "This investigation proves the reach of the FBI, along with its local, state and federal partners, is a long one; in this case even across international borders.  The protection of our children from depraved predators and online threats will remain a priority as long as there are those who would sexually exploit our children."

“Predators that target children via the Internet are not limited by state or national jurisdictional boundaries,” said Chief Patton. “The entire West Bloomfield community is thankful for the efforts and cooperation of the local, federal, and international law enforcement partners which led to this indictment.”

Fontana was extradited to the United States from Canada last year.

McQuade praised the work of the Special Agents of the FBI, the officers from the West Bloomfield Police Department and the detectives from the major crime unit of the Durham Regional Police Service, Ontario, Canada. The case is being prosecuted by Assistant United States Attorneys Douglas Salzenstein and Matthew Roth.

A leader of the Vice Lords street gang was sentenced today to 20 years in prison for attempted murder in aid of racketeering in connection with the May 7, 2015, shooting of a family of four with an AK-47 in Detroit.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade 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 Office, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Chief James Craig of the Detroit Police Department made the announcements. 

Antonio Clark, aka Cheeto, 26, of Detroit, pleaded guilty on Jan. 27, 2016, to two counts of attempted murder in aid of racketeering and use and carry of a firearm during and in relation to a crime of violence. 

According to Clark’s plea agreement, the Vice Lords is a national gang engaged in a variety of crimes, including murder, robbery, narcotics trafficking and witness intimidation.  The Vice Lords’ leaders are located in both Chicago and Detroit, and the gang is broken down into various “sets,” “decks,” or “branches,” including the Detroit-based Traveling Vice Lords, Insane Vice Lords, Imperial Insane Vice Lords, Conservative Vice Lords and Mafia Insane Vice Lords.  Clark admitted that members who seek to leave the gang oftentimes endure a physical beating, known as a “beat out,” by multiple Vice Lords members, or are targeted for killing, known as a “green light.” 

Clark admitted that in May 2015, he and other members of the Vice Lords were searching for two brothers who had left or attempted to leave the gang.  According to the plea agreement and sentencing documents, Clark and at least eight other Vice Lords met on May 7, 2015, to discuss a plan of action and Clark brought a loaded AK-47 to the meeting.  Clark admitted that later that day, he and other Vice Lords traveled to the intended victims’ house in broad daylight.  According to sentencing documents, Clark fired the AK-47 23 times, hitting the brothers, their mother and a 15-year-old sister.  In addition, sentencing documents reflect that a five-year-old boy was present but not shot.  All of the victims survived the shooting.

Seven other Vice Lords defendants also have pleaded guilty to charges relating to the shooting, four of whom have been sentenced: Aramis Wilson, 25, of Detroit, was sentenced to 150 months in prison; Dion Robinson, 38, of Detroit, was sentenced to 121 months in prison; Jonathan Kinchen, 23, of Detroit, was sentenced to 120 months in prison; and Kojuan Lee, 20, of Detroit, was sentenced to 97 months in prison.

The charges and convictions related to the May 7, 2015, shooting 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 dozens of Vice Lords leaders and members over the last few years.  In two trials during March and May 2015, juries convicted eight leaders and members of the Phantom Outlaw Motorcycle Club, many of whom were also leaders and members of the Vice Lords, for various crimes, including a mass-murder plot against a rival organization and the shooting of a member of another rival organization.  Among those convicted was Antonio Johnson, aka MT and Mister Tony, the National President of the Phantoms and the Three-Star General over all of the Vice Lords in Michigan.  On Sept. 8, 2015, Johnson was sentenced to 35 years in prison for racketeering conspiracy, murder conspiracy in aid of racketeering, assault with a dangerous weapon in aid of racketeering, aiding and abetting the use and carry of firearms during and in relation to a crime of violence and felon in possession of a firearm.

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 Vice Lords street gang, and identified the leaders and key members of the gang, who now have been held accountable.

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

The ATF, FBI and Detroit Police Department are investigating the case.  Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Mark Bilkovic of the Eastern District of Michigan are prosecuting the case.

The Justice Department filed a lawsuit today in the Eastern District of Michigan to recover damages from the COPOCO Community Credit Union, alleging that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing protected servicemembers’ motor vehicles without obtaining the necessary court orders.

The SCRA protects the rights of servicemembers on active duty by suspending or modifying certain civil obligations.  The law prohibits repossessing a motor vehicle from a servicemember during military service without a court order if the individual made a deposit or installment payment on the loan before entering military service.  The department’s complaint alleges that COPOCO’s vehicle repossession procedures did not include any process to determine customers’ military status – such as checking the Department of Defense’s database – prior to conducting repossessions without court orders.  The complaint also alleges that COPOCO illegally repossessed U.S. Army Private First Class Christian Carriveau’s car, along with his two-year-old daughter’s car seat, out of his driveway in Lacey, Washington, near Joint Base Lewis-McChord.  His wife, Alyssa Carriveau, initially believed that the car had been stolen, but she subsequently learned that it had been repossessed.  Private First Class Carriveau was away at military training at the time and Alyssa Carriveau was not able to get to work without the vehicle.

“No servicemember should be penalized for honorably serving our country,” said Principal Deputy Associate Attorney General Bill Baer.  “COPOCO Community Credit Union’s alleged misconduct in repossessing vehicles without the required court order is both wrong and illegal.  The Justice Department continues to ensure that we are doing all we can to protect and assist servicemembers, veterans and their families from unlawful conduct by creditors.”

“The Justice Department works tirelessly to protect the rights of those who answer our nation’s call to duty to defend our freedom,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “We will continue to vigorously pursue lenders who fail to take the simple steps necessary to determine, before repossessing a car, whether it belongs to a servicemember.”

“This law was designed to ease the legal and financial burdens for servicemembers and their families when facing the demands of active duty,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan.  “We owe it to all servicemembers to vigorously enforce these laws to protect them while they are serving their country.”

The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service.  It requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service.  The court may delay the repossession or require the lender to refund prior payments before repossessing.  The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember.  By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, COPOCO prevented court review of whether such repossessions should be delayed or adjusted in light of military service.

In addition to monetary damages for affected servicemembers, the SCRA provides for civil monetary penalties of up to $60,000 for the first offense and $120,000 for each subsequent offense.  The department will also seek changes in how COPOCO conducts future repossessions.

COPOCO Community Credit Union is based in Bay City, Michigan.

Servicemembers and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office.  Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.  Additional information about the department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.

COPOCO Complaint

The Department of Justice Civil Rights Division and the U.S. Attorney's Office for the Eastern District of Michigan filed a lawsuit today to recover damages from the COPOCO Community Credit Union, alleging that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing protected servicemembers’ motor vehicles without obtaining the necessary court orders.

The SCRA protects the rights of servicemembers on active duty by suspending or modifying certain civil obligations. The law prohibits repossessing a motor vehicle from a servicemember during military service without a court order if the individual made a deposit or installment payment on the loan before entering military service. The department’s complaint alleges that COPOCO’s vehicle repossession procedures did not include any process to determine customers’ military status – such as checking the Department of Defense’s database – prior to conducting repossessions without court orders. The complaint also alleges that COPOCO illegally repossessed U.S. Army Private First Class Christian Carriveau’s car, along with his two-year-old daughter’s car seat, out of his driveway in Lacey, Washington, near Joint Base Lewis-McChord. His wife, Alyssa Carriveau, initially believed that the car had been stolen, but she subsequently learned that it had been repossessed. Private First Class Carriveau was away at military training at the time and Alyssa Carriveau was not able to get to work without the vehicle.

"No servicemember should be penalized for honorably serving our country," said Principal Deputy Associate Attorney General Bill Baer. "COPOCO Community Credit Union’s alleged misconduct in repossessing vehicles without the required court order is both wrong and illegal. The Justice Department continues to ensure that we are doing all we can to protect and assist servicemembers, veterans and their families from unlawful conduct by creditors."

"The Justice Department works tirelessly to protect the rights of those who answer our nation’s call to duty to defend our freedom," said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. "We will continue to vigorously pursue lenders who fail to take the simple steps necessary to determine, before repossessing a car, whether it belongs to a servicemember."

"This law was designed to ease the legal and financial burdens for servicemembers and their families when facing the demands of active duty," said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. "We owe it to all servicemembers to vigorously enforce these laws to protect them while they are serving their country."

The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service. It requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember. By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, COPOCO prevented court review of whether such repossessions should be delayed or adjusted in light of military service.

In addition to monetary damages for affected servicemembers, the SCRA provides for civil monetary penalties of up to $60,000 for the first offense and $120,000 for each subsequent offense. The department will also seek changes in how COPOCO conducts future repossessions.

COPOCO Community Credit Union is based in Bay City, Michigan.

Servicemembers and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php. Additional information about the department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.

DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.

A Detroit Police Lieutenant and crew chief from the now-disbanded Narcotics Unit of the Detroit Police Department were convicted today by a federal jury in Detroit on charges of robbing drug dealers and stealing drugs and money obtained in police searches, U.S. Attorney Barbara L. McQuade announced today.

Joining McQuade in the announcement were Special Agent in Charge David P. Gelios of the Federal Bureau of Investigation’s Detroit Division, Chief James E. Craig of the Detroit Police Department, Manny Muriel, Special Agent in Charge of the Detroit office of the Internal Revenue Service – Criminal Investigation and Special Agent in Charge Timothy Plancon, Drug Enforcement Administration, Detroit Field Division.

The five-week trial was conducted before U.S. District Judge Stephen J. Murphy. 

Defendants Lt. David Hansberry, 35, and Officer Bryan Watson, 47, were each convicted on charges of conspiracy to interfere with commerce by extortion and robbery.  They were acquitted on the remaining counts of the indictment. A third defendant, Kevlin Omar Brown, 46, was acquitted on one count of interference with commerce by robbery and extortion.

The conspiracy conviction carries a potential sentence of up to twenty years imprisonment and a $250,000 fine.

According to the evidence presented at trial, the defendants arranged drug transactions with civilians, including confidential sources, so that they could rob and extort them.  The defendants allegedly carried out traffic stops and fake arrests, and then stole drugs, money and personal property from their victims.  Hansberry and Watson used their status as law enforcement officers to assist in their scheme, by driving police vehicles, activating lights on their police vehicles, wearing police-issued attire, displaying official badges and carrying firearms.  Hansberry and Watson also identified themselves as police officers to coerce their victims into complying with their demands and to encourage their victims to flee, leaving behind illegal drugs, money  and personal property. 

In addition, the evidence showed that Hansberry, who was a sergeant at the time, and Watson failed to log into evidence money and drugs seized during searches of homes.  Instead, they split the proceeds and arranged for the sale of the drugs, sharing the proceeds generated by the sales.  In one instance in July 2010, Hansberry and Watson participated in a drug seizure that netted more than $3 million, the largest cash seizure by the Detroit Police Department at that time.  Only $2.2 million, however, was placed in the evidence room.

“These defendants tarnished the badge that is worn with honor by their fellow officers, using their power as police officers to steal money and drugs from criminals who have no recourse,” McQuade said.  “In addition to betraying their trust to uphold the law, these officers also put back out onto the streets the drugs that they had seized so that they could split the proceeds.  Their greed caused them to poison our neighborhoods with drugs and to diminish public trust in police.”

"Today's guilty verdict demonstrates the resolve of the FBI-led Public Corruption Task Force, in partnership with the Detroit Police Department, to aggressively investigate law enforcement officers who abuse their positions of public trust," said  David P. Gelios, Special Agent in Charge, FBI Detroit Division.  "Despite this isolated betrayal of trust, today's convictions should not tarnish the outstanding work conducted every day by the Detroit Police Department to combat crime in this great city,”

 “The vast majority of the men and women of the Detroit Police Department are honest and hard-working, but these defendants betrayed their oath and their fellow officers,” said Chief Craig.  “We are committed to the highest standards of integrity, and we will remove any officers who do not live up to those high standards.”

The case was investigated by the by the FBI Detroit Area Public Corruption Task Force, in collaboration with the Detroit Police Department’s Office of Internal Affairs and the Drug Enforcement Administration.  The case is being prosecuted by Assistant U.S. Attorneys Sheldon Light and J. Michael Buckley.

A Toledo, Ohio, grand jury returned a three-count indictment against Yahya Farooq Mohammad today, charging him with soliciting the murder of a federal judge, announced U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan.

U.S. Attorney McQuade was joined in the announcement by Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Field Division and U.S. Marshal Peter J. Elliott of the Northern District of Ohio.

Mohammad, 37, from the United Arab Emirates, was charged with attempted first degree murder of a federal officer, solicitation to commit a crime of violence and use of interstate commerce facilities in commission of murder for hire.

Mohammad was indicted last year on charges of conspiring with three other men to travel to Yemen to provide thousands of dollars to Anwar Al-Awlaki in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world.  That case remains pending and is assigned to U.S. District Judge Jack Zouhary of the Northern District of Ohio.

In the most recent charges, Mohammad is accused of soliciting someone to kidnap and murder Judge Zouhary.

On April 8, Mohammad allegedly told another inmate in the Lucas County Corrections Center in Toledo that he wanted Zouhary kidnapped and murder.  That inmate then introduced Mohammad to an undercover FBI employee, according to the indictment.

The indictment alleges that Mohammad told the inmate that he was willing to pay $15,000 to have Zouhary killed.  Mohammad also allegedly told the undercover employee that he could send a down payment through a mail courier or that the undercover could meet Mohammad’s wife in Chicago to pick up the money.  When asked when he wanted the murder committed, Mohammad stated: “The sooner would be good, you know,” according to the indictment.

On May 5, Mohammad’s wife, identified in the indictment as N.T., met the undercover agent at a post office in Bolingbrook, Illinois, and provided $1,000 in cash inside a white envelope, according to the indictment.

On May 11, Mohammad informed the inmate that the rest of the money for the murder was coming from Dubai to Texas to Chicago to N.T., and then to the undercover agent, according to the indictment.

According to the indictment, on May 16, the undercover agent and N.T. met, and the undercover agent showed N.T. a photograph that purported to be of Zouhary’s dead body.  The undercover agent told N.T. he needed the rest of the money owed to him.  N.T. said she would contact Mohammad and then she would contact the undercover agent, according to the indictment.

“According to the charges in the indictment, this defendant not only attempted to have a federal judge murdered, but he did so to obstruct justice in a terrorism case against him,” said U.S. Attorney McQuade.  “This prosecution seeks to hold the defendant accountable for attempting to victimize the judge and for trying to undermine our criminal justice system.”

“Conspiring to have a judge killed is not the way to avoid being prosecuted - now Mohammad will be held accountable for additional serious federal charges,” said Special Agent in Charge Anthony.  “The FBI will continue to work with our partners to ensure the safety of those that uphold the rule of law. “  

“Protecting the federal judiciary is our highest priority,” said U.S. Marshal Elliott.  “This is an example where we were able to work with our law enforcement partners to protect a judge and bring charges against a dangerous individual.”

The case is prosecuted by Assistant U.S. Attorneys Michael Freeman and Matthew Shepherd of the Northern District of Ohio following an investigation by the FBI.  The U.S. Attorney for the Northern District of Ohio has recused herself from this case. 

If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offenses and the characteristics of the violations.  Counts one and two of the indictment carry a maximum statutory penalty of 20 years in prison and count three carries a statutory maximum penalty of 10 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.

The former Detroit Public Schools Director of Grant Development pleaded guilty today to federal program fraud, announced U.S. Attorney Barbara L. McQuade.

Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

Pleading guilty today before United States District Judge Stephen J. Murphy was Carolyn StarkeyDarden, 69, of Detroit. 

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.

United States Attorney Barbara L. McQuade said, “We know that most school officials and teachers are honest, but we hope to deter fraud by holding accountable those who steal funds from our school children.  It makes a difference when those who are tempted by greed know that someone is watching and there is a price to be paid.”

“Today’s guilty plea represents another step towards holding Ms. Starkey-Darden responsible for cheating Detroit Public Schools students out of valuable resources by fraudulently billing for her company’s services,” said David P. Gelios, Special Agent in Charge, FBI Detroit Division.  “The message should be clear:  Public funds allocated to educate our children must be utilized as intended.  To those that would do otherwise, you will be held to account.”  

StarkeyDarden faces up to 10 years in prison and fines of up to $250,000 on the charge of Federal Program Theft.  Sentencing has been set for October 28, 2016 at 10 am..

This case was investigated by agents of the FBI.  This case is being 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.

 

The collaboration of local, state and federal law enforcement under the Detroit One initiative has led to the indictment and arrests of two members of the 6 Mile Chedda Grove street gang for a shooting that involved children, United States Attorney Barbara L. McQuade announced today.

Joining McQuade in the announcement was Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division, and Chief James Craig, Detroit Police Department.

The indictment charges two defendants for their alleged involvement in a shooting on the afternoon of December 1, 2015, near a market on Hayes Street on Detroit’s east side.  The indictment alleges that the two men fired gunshots at a car, killing the 21 year old driver and 13-year-old passenger.  The indictment further alleges that the gunmen assaulted two other victims, ages 13 and 7 with their guns causing serious injury. 

According to the indictment, “6 Mile Chedda Grove” is a street gang that operates primarily on the east side of Detroit.  The indictment alleges that 6 Mile Chedda Grove is a violent organization responsible for murders, assaults, robberies and firearms and narcotics trafficking in the Detroit metropolitan area and in other states.  The gang uses violence to retaliate against rivals, to intimidate witnesses and to advance members’ positions within the gang. 

Under the Detroit One initiative, and through the lead efforts of the FBI’s Violent Gang Task Force and the Detroit Police Gang Intelligence Unit, law enforcement identified two violent members of this gang who have been charged by indictment in federal court.  The Task Force includes representatives of the Detroit Police Department, Michigan Department of Corrections, and the U.S. Border Patrol. 

The two defendants arrested today are:

• Edwin Lamont Mills, a/k/a “Edboy,” 26, of Detroit, charged with two counts each of murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering and using and carrying a firearm during a crime of violence causing death;

• Carlo Dajuan Wilson, a/k/a “Los,” 22, of Detroit, also charged with two counts each of murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering and using and carrying a firearm during a crime of violence causing death.

“This shooting, which occurred during broad daylight, killed a 13-year-old girl and 21-year-old man, and seriously injured two other children,” McQuade said.  “The utter disregard for human life, including the lives of children, is simply unacceptable, and the Detroit One partners are committed to doing all that we can to end this epidemic of violence against our children.”

“These individuals had no regard for the welfare of these children.  Today's arrests demonstrate the continuing commitment of law enforcement to work together to make the neighborhoods in which we raise our children safer," Special Agent in Charge Gelios said.

"The children of Detroit deserve a safe city in which they may grow and thrive," said Chief James E. Craig. "The Detroit One partnership is rooted in the belief that all citizens and neighborhoods deserve to be free of crime and our joint efforts to make that a reality will continue."

By working collaboratively, local, state and federal law enforcement investigate and prosecute individuals and groups initiating violence in Detroit.  This indictment is the latest in a string of cases from the United States Attorney’s Office and Wayne County Prosecutor’s Office during the last three years involving violent street gangs in the city of Detroit.  Detroit has seen a reduction in homicides every year since the Detroit One collaboration began in 2013. 

The defendants will be making their initial appearances in federal court in Detroit this afternoon. 

An indictment is only a charge and is not evidence of guilt.  A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

Representatives from the U.S. Attorney's Office and Detroit’s Youth Violence Prevention Initiative traveled today to Washington, D.C. to join with other cities from around the country to discuss strategies for reducing youth violence and gang activity at the Fifth National Summit on Preventing Youth Violence.

The National Forum on Youth Violence Prevention, established at the direction of President Obama in 2010, is a network of communities and federal agencies that work together and build local capacity to prevent and reduce youth violence.  Boston, Camden, Chicago, Detroit, Memphis, Minneapolis, New Orleans, Philadelphia, Salinas, San Jose, Long Beach, Cleveland, Louisville, Seattle and Baltimore are the 15 cities participating in the Forum.  This national convening will bring together over 600 participants representing more than 30 cities, including many communities that have accepted President Obama’s MY Brother's Keeper Community Challenge.

President Obama launched the My Brother’s Keeper initiative in February of 2014 to address persistent opportunity gaps faced by boys and young men of color and ensure that all young people can reach their full potential.  Through this initiative, the Administration is joining with cities and towns, businesses, and foundations who are taking important steps to ensure that every child has a clear pathway to success from cradle to college and career. Learn more at: https://www.whitehouse.gov/my-brothers-keeper.

"In light of the intolerable level of violence committed against children and teens in Detroit, we need to explore all ideas for protecting their safety," McQuade said.   The National Forum brings together the best practices from around the country, and we hope to bring home the best ways to give our kids the safe environment they deserve."

 

The Justice Department announced today that it has filed a lawsuit alleging that the state of Michigan and the Michigan Department of Corrections (MDOC) are engaged in a pattern or practice of sex-based employment discrimination against female correctional officers in violation of Title VII of the Civil Rights Act of 1964.

Title VII prohibits discrimination in employment on the basis of race, color, sex, national origin and religion.  The lawsuit, filed today in the U.S. District Court for the Eastern District of Michigan, alleges that Michigan and MDOC discriminated against female employees assigned to MDOC’s Women’s Huron Valley Correctional Facility (Huron Valley) by implementing an overly broad female-only assignment policy and by unnecessarily denying requests by female employees for transfers, in violation of Title VII.

“Employers may not unduly lock workers into or out of a job because of their sex,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “Qualified male and female correctional officers deserve equal opportunities to compete for job assignments and transfers without unnecessary barriers.” 

The complaint alleges that beginning in 2009, MDOC discriminated against female correctional officers on the basis of sex at its only prison for female inmates, Huron Valley.  The complaint further alleges that MDOC restricted multiple correctional officer positions on the basis of sex and without justification, in violation of Title VII.  The complaint also alleges that MDOC has a pattern or practice of denying the transfer requests of female correctional officers from Huron Valley to other MDOC prisons, while at the same time granting transfer requests by male correctional officers to move to other facilities.  Both policies required female employees at Huron Valley to work excessive overtime hours at a cost to their health.

The lawsuit seeks a court order requiring the defendants to stop discriminatory job assignment and transfer policies at Huron Valley and to order MDOC to develop and implement lawful and effective measures to prevent further discrimination.  The remedial relief sought by this lawsuit also includes monetary damages as compensation for those female correctional officers who were harmed by the alleged discrimination.

“The Michigan Department of Corrections’ policy unnecessarily limits job opportunities for its female employees at the Huron Valley Correctional Facility,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan.  “We are not challenging positions where it makes sense to assign only female officers, but only those positions that could reasonably be filled by men or women.  By limiting positions that are not justifiably related to inmate privacy to women officers, MDOC created staffing limitations that harm female employees by forcing them to work overtime and preventing them from transferring to other facilities that are closer to their homes, offer more favorable conditions or provide promotional opportunities.”

Twenty-eight female correctional officers filed charges with the Equal Employment Opportunity Commission (EEOC) challenging MDOC’s female-only job assignment and transfer policies.  The EEOC’s Detroit Field Office, in the Indianapolis District, investigated the charges and found reasonable cause to believe that MDOC discriminated against these female correctional officers and other female correctional officers employed at Huron Valley on the basis of sex.  After unsuccessful efforts at conciliation, the EEOC referred the charges to the Justice Department.

“Making decisions on job assignments and transfers based on a person’s sex violates federal law and is completely unacceptable,” said Director Gail Cober of the EEOC’s Detroit Field Office.  “The EEOC will continue to work in partnership with the DOJ to ensure that public employers follow the law and we will continue to fight for victims of sex discrimination to ensure that everyone has equal opportunity in the workplace.”

The case was brought by Trial Attorneys Carol Wong, Lisa Wilson Edwards and Taryn Wilgus Null of the Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney Sarah Karpinen of the Eastern District of Michigan.  Enforcement of federal employment discrimination laws is a top priority for the Justice Department.  Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.

MDOC Complaint

The U.S. Environmental Protection Agency (EPA) and the Department of Justice today announced an agreement with Ohio-based Marathon Petroleum Company that will reduce air pollution from the company’s petroleum refineries in Illinois, Kentucky, Louisiana, Michigan and Ohio.  Marathon will spend $319 million to install state-of-the-art Flare Gas Recovery Systems (FGRSs), which will capture and recycle gases that would otherwise be sent to combustion devices known as flares.  Marathon will also spend $15.55 million on projects to reduce air pollution at three of the facilities and will pay a civil penalty of $326,500 to the United States.

“This agreement continues the significant pollution reductions achieved under our earlier consent decree with Marathon in 2012,” said John C. Cruden, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division.  “All five communities near these refineries will breathe cleaner air as a result of this agreement and Detroit will see a reduction in flaring at the refinery’s fence line.”

“When companies like Marathon install state-of-the-art pollution controls, they reduce air pollution in some of our most vulnerable communities,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “By updating this agreement, we are furthering our commitment to protect communities across the Southeast and the Midwest, especially places like Detroit that are overburdened by pollution.”

“This agreement marks significant progress in environmental justice in southwest Detroit,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan.  “It shows that industry can thrive while protecting the environment.  By investing in technology, Marathon will improve air quality for all of our residents throughout southeastern Michigan.”

The settlement filed today in the U.S. District Court in Detroit amends a 2012 consent decree involving the company’s flares.  A flare is a mechanical device, ordinarily elevated high off the ground, used to combust waste gases.

When fully implemented, today’s agreement is expected to reduce harmful air pollutants like volatile organic compounds (VOCs), sulfur dioxides (SO2) and nitrogen oxides (NOx) by approximately 1,037 tons per year.  In 2012, Marathon agreed to reduce air pollution from flares by generating less waste gas and by installing equipment designed to make flares burn more efficiently.  The 2012 settlement has reduced emissions of VOCs and SO2 by over 5,200 tons per year.

Under the agreement filed today, Marathon will install seven FGRSs at an estimated cost of $319 million at five of its refineries located in Canton, Ohio; Catlettsburg, Kentucky; Detroit; Garyville, Louisiana; and Robinson, Illinois.  Marathon will be required to operate these FGRSs at a higher percentage of time than EPA has ever secured in prior enforcement actions.  Marathon will also maintain two duplicates of a critical spare part to be delivered immediately to any of these refineries as necessary, to help make sure the FGRSs have minimal downtime.

Marathon will also spend approximately $6 million to shut down a flare at the fence line of its Detroit refinery and $9.55 million on projects to reduce NOx emissions at its Canton and Garyville refineries.

By installing advanced pollution controls at its refineries, Marathon will help reduce emissions that can cause respiratory and cardiovascular health impacts, which can disproportionately affect low-income and vulnerable populations, including children.

Under the settlement, some of Marathon’s obligations under the 2012 agreement to ensure high flare combustion efficiency will eventually be replaced by Marathon’s obligation to comply with a new, 2015 EPA rule on flare combustion efficiency.  At four refineries, compliance with an EPA flare standard related to SO2 will be extended for a limited period.  The projected temporary increase in pollution related to those extensions will be more than offset by contemporaneous decreases that will continue indefinitely.

The consent decree – subject to a 30-day public comment period and final court approval – is available at: www.justice.gov/enrd/.

To learn more about the settlement, visit: https://www.epa.gov/enforcement/first-amendment-2012-us-v-marathon-petroleum-co-clean-air-act-consent-decree

To learn more about EPA’s civil enforcement of the Clean Air Act, visit: https://www.epa.gov/enforcement/air-enforcement.

To learn more about EPA’s refinery initiative, visit: https://www.epa.gov/enforcement/petroleum-refinery-national-case-results. 

MPC First Amendment to Consent Decree

Kenyetta Wilbourn Snapp, 41, a former Educational Achievement Authority (“EAA”) principal of Denby High School and later of Mumford High School, was sentenced today to twelve months in prison as a result of her pleading guilty earlier this year to conspiracy to commit federal program bribery and federal income tax evasion charges, United States Attorney Barbara L. McQuade announced. In addition, Snapp was ordered to pay restitution in the amount of $58,050 to EAA as well as $26,233 to the Internal Revenue Service.

Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.

At the time of the plea, Snapp admitted to selecting Making a Difference Everyday (“M.A.D.E.”), a company owned by co-defendant Glynis Thornton , as the after-school tutoring vendor for Denby High School and then Mumford High School. In exchange, Thornton paid Snapp monetary kickbacks totaling approximately $58,000, as a reward for Snapp selecting and retaining M.A.D.E. as the after-school tutoring vendor. Thornton admitted that she disguised payments to Snapp by causing checks to be issued payable to a M.A.D.E. employee’s company, rather than paying Snapp directly. The M.A.D.E. employee would then deposit and withdraw the money and give it to Snapp. Snapp also admitted to failing to report the kickback payments as income during taxable year 2012.

"Ms. Snapp deserves to spend time in prison for her betrayal of public trust, but this sentence demonstrates the value of early cooperation to provide information about the criminal acts of others”, stated United States Attorney McQuade.

"Ms. Snapp and Ms. Thornton's efforts to divert funds from the struggling Detroit Public School District and students trying to better themselves is particularly disturbing," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "These convictions represent the commitment of the FBI and our partners to expose and shut down schemes that would rob our communities of the education and services that they count on and deserve."

IRS-CI Special Agent in Charge Koopman stated, "When public officials commitcrimes, whether as part of their official duties or in their private lives, they are violating the trust of the people they serve. IRS-CI will continue to hold them accountable for their actions".

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.

Criminal charges were filed today against Carolyn StarkeyDarden, a former Detroit Public Schools Director of Grant Development, alleging federal program fraud, announced U.S. Attorney Barbara L. McQuade.                       

Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

The charging document, known as a criminal information, charges that between 2005 and 2012, Carolyn StarkeyDarden, 69, of Detroit, 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.

United States Attorney Barbara L. McQuade said, “We hope that our work to uncover fraud in public school systems will deter others from stealing funds intended to educate children.”

“Ms. StarkeyDarden cheated the students of Detroit Public Schools out of valuable resources by fraudulently billing for her company’s services,” said David P. Gelios, Special Agent in Charge, FBI Detroit Division.  “In fact, Detroit students were cheated twice by this scheme.  Students that needed tutoring never received it, and money that could have been spent on other resources was paid to Ms. StarkeyDarden as part of her fraud scheme.”

StarkeyDarden faces up to 10 years in prison and fines of up to $250,000 on the charge of Federal Program Theft.

This case was investigated by agents of the FBI.  This case is being 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 Criminal Information 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 Sterling Heights man was sentenced to more than 30 years in federal prison after having been convicted in January by a jury of producing child pornography and enticing a minor online, announced United States Attorney Barbara L. McQuade.

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

Dennis George Dehate, 51, was sentenced yesterday by United States District Judge Sean Cox in Detroit. 

Evidence presented during the trial established that DeHate preyed upon a 13-year-old girl, convincing her to produce sexually explicit images and videos for him.  DeHate used the text message application, KIK, to communicate with the child, who lived out of state.

“Cell phone technology now provides a virtual doorway for sexual predators to enter children’s bedrooms from many states away,” McQuade said.  “We urge parents to talk to their children about the dangers of communicating with strangers online, and to assure children that if they are victimized, they should never be ashamed to ask for help.”

“The sentencing of Dehate is a tremendous victory for the many investigators, counselors and non-government organizations tirelessly working to protect our nation’s children from online threats.  The fight to eradicate such predators continues and the FBI asks anyone with information regarding such activity to immediately contact their nearest FBI field office or law enforcement agency,” Gelios said.

This case was investigated by Special Agents of the Federal Bureau of Investigation.  The case is part of the Project Safe Childhood initiative, and was prosecuted by Assistant United States Attorney Maggie Smith.

The final three defendants were each sentenced to 33 years in prison today for their involvement in the violent armed robbery of Tapper’s Diamonds and Fine Jewelry in West Bloomfield and an attempted armed robbery of Medawar Jewelers in Grand Rapids in April 2014, United States Attorney Barbara L. McQuade announced.                      

Co-conspirator Nathaniel Pembrook was sentenced to 33 years last week.

David Briley, 47, Shaheed Calhoun, 36, and Orlando Johnson, 42, were convicted along with Pembrook of a variety of charges, including conspiracy to interfere with interstate commerce by force, interference with interstate commerce by force, use and carry of a firearm during and in relation to a crime of violence, and being felons in possession of firearms after a four week-long trial in November and December 2015.  The evidence produced at trial showed that all four men lived in Philadelphia and traveled to Michigan on April 21 and 22, 2014, to commit armed robberies of jewelry stores, particularly targeting Rolex distributors, as part of a six-person robbery crew. 

This armed robbery crew initially attempted to steal Rolex watches and other valuables from Medawar Jewelers in Grand Rapids, at approximately 12:28 pm on April 22, 2014.  During that attempted robbery, one robber used a hammer to smash the Rolex watch display while three other robbers, one armed with a gun, rushed to the back area of the store looking for other valuables.  The store owners, who are registered concealed pistol owners, shot the armed robber, and all of the robbers fled without any valuables. 

About five hours later, three men, dressed in identical clothes as the robbers in Grand Rapids earlier that day, entered Tapper’s Diamonds and Fine Jewelry on Orchard Lake Road in West Bloomfield, and held employees and customers at gunpoint as they stole approximately $1.3 million worth of Rolex watches.  The men then fled the store without being apprehended.  

The Federal Bureau of Investigation, Kent County Sheriff Department, and West Bloomfield Police Department coordinated their investigative efforts and began to piece together various pieces of evidence to identify the armed robbers.   Pembrook’s blood, containing DNA, were found at the Medawar Jewelers location.  Investigators discovered that Pembrook checked himself into Pennsylvania Prysberatian Hospital in the early morning hours of April 23, 2014, complaining of a gunshot wound.  The hospital removed the bullet from Pembrook’s arm and Michigan State Police laboratory personnel were able to match the fired bullet to the Medawars owner’s firearm.  Additionally, investigators tracked down video and cell phone information that helped to place all of these men from Philadelphia at the robbery locations during the times of the robberies.

Court records show that these men had a long history of committing larcenies and armed robberies.  Briley had been previously convicted on 17 prior occasions, Calhoun had eight prior convictions, and Johnson had 13 prior convictions.

 “We are grateful for the outstanding coordination by law enforcement agencies across state lines to put this case together.”  McQuade said. “Armed robbery creates an unacceptable risk of harm to the public, and we are pleased that these men will be off the streets for a long time.”

Law enforcement agencies are still attempting to identify the final two persons associated with this robbery crew.  If anyone has any information about those person’s identities, they are asked to contact the Federal Bureau of Investigation.

The case was prosecuted by Assistant United States Attorneys Daniel Lemisch and Christopher Graveline.

 

More than 350 students and parents attended a community forum on Child Exploitation, Prevention and Enforcement hosted by Southgate Anderson High School this morning, announced United States Attorney Barbara L. McQuade. 

The event was held to commemorate the tenth anniversary of Project Safe Childhood, a Department of Justice nationwide initiative launched in 2006 to combat child sexual exploitation.

The event consisted of presentations from experienced prosecutors about the dangers of online activity, including how online predators extort children for sexually explicit images and videos.  This criminal activity, commonly called sextortion, has become a growing concern across the country.  U.S. Attorney McQuade and her assistant prosecutors highlighted some sextortion prosecutions, while former Wayne County Sheriff’s Deputy Erin Diamond described the latest technology and the dangers lurking online.  The panel also provided parents and students with an opportunity to ask questions regarding their online activity. 

"I have been astonished by the number of online predators who are extorting teens, McQuade said.  "We need to tell teens that they should never be too ashamed to tell their parents or another adult that they have been the victim of sextortion. Reporting sextortion to police is the only way to stop a predator from exploiting you, and may also help rescue other victims."

The event provided an opportunity for the public to become more aware of the United States Attorney’s Offices aggressive approach to raising awareness and educating the public on ways to prevent the future sexual exploitation of children. 

U.S. Attorney McQuade expressed thanks to Southgate Anderson High School Superintendent Leslie Hainrihar and  Assistant Principal Dave Pinkowski for hosting the event and to the students and parents who attended and to the team of dedicated prosecutors and law enforcement who successfully put together the event.

A Detroit man was sentenced to 33 years in federal prison after having pleaded guilty earlier this year to armed robbery and firearms offenses, announced United States Attorney Barbara L. McQuade.

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

 Elan Andrews, 29, of Detroit was sentenced yesterday by United States District Judge Gerald E. Rosen in Detroit.

According to court records, Andrews was the leader of a several man robbery crew that committed armed robberies of Little Caesar’s fast food stores in Oak Park and Dearborn in March of 2008.  Andrews and his accomplices would enter the restaurant wearing hoodies, display a firearm, and demand the contents of the cash register and safe before fleeing to a waiting vehicle with an occupant inside.  The “hoodies” worn during the robberies were unique "hoodies"  in that one had a skeletal-like design on the chest area and the other had a web-like design on its chest area. Hence, law enforcement dubbed them the "Spiderman Crew." In addition, the hood of each hoodie zipped from the back portion of the hood all the way down below the front chest portion. Each hoodie, once zipped, had a built in mask that enclosed and hid the wearer's face behind a built-in dark mesh material. The two robberies were part of a rash of robberies of commercial fast food restaurants over a two-week period during the spring of 2008. The robberies were wide-spread and targeted restaurants in Detroit and surrounding suburban communities, including Ferndale, Birmingham, Redford, and Oak Park.

Andrews, and other members of the crew, were apprehended as a result of a task force comprised of officers from the Detroit Police Department and several suburban law enforcement agencies that dedicated several of its officers to the task force in an effort to stop this particular crime spree.

US Attorney McQuade stated, “We hope that violent offenders will take note of this type of sentence and put down their guns."

Co-defendants Jamal Muhammad received a sentence of 9 ½ years, Anthony Sampson received a sentence of 6 years and Elisha Whitehead received a sentence of 15 years.

United States Attorney McQuade praised the work of all officers and agencies involved for the diligent pursuit and investigation of the men who were intent on terrorizing businesses, employees and customers in the Detroit area. 

The case was prosecuted by Assistant United States Attorneys Terrence Haugabook and Shane Cralle.

A Philadelphia man was sentenced to 33 years in prison today for his involvement in the violent armed robbery of Tapper’s Diamonds and Fine Jewelry in West Bloomfield and an attempted armed robbery of Medawar Jewelers in Grand Rapids in April 2014, United States Attorney Barbara L. McQuade announced.             

McQuade was jointed in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Chief Michael Patton, West Bloomfield Police Department and Sheriff Lawrence A. Stelma, Kent County Sheriff’s Department.

Nathaniel Pembrook, 43, was sentenced before United States District Judge Laurie J. Michelson in Detroit, Michigan. 

Pembrook, along with his co-conspirators David Briley, Shaheed Calhoun, and Orlando Johnson, were convicted of a variety of charges, including conspiracy to interfere with interstate commerce by force, interference with interstate commerce by force, use and carry of a firearm during and in relation to a crime of violence, and being felons in possession of firearms after a four week-long trial in November – December 2015.  The evidence produced at trial showed that all four men lived in Philadelphia, Pennsylvania and traveled to Michigan on April 21-22, 2014 to commit armed robberies of jewelry stores, particularly targeting the Rolex distributors, as part of a six-person robbery crew. 

This armed robbery crew initially attempted to steal Rolex watches and other valuables from Medawar Jewelers, located at 4518 Plainfield Avenue in Grand Rapids, at approximately 12:28 pm on April 22, 2014.  During the course of that attempted robbery, one robber used a hammer to smash the Rolex watch display while three other robbers, one armed with a gun, rushed the back area of the store looking for other valuables.  The store owners, who are registered concealed pistol owners, shot the armed robber and all the robbers fled without any valuables.  About five hours later, three men, dressed in identical clothes as the robbers in Grand Rapids earlier that day, entered Tapper’s Diamonds and Fine Jewelry, located at 6337 Orchard Lake Road in West Bloomfield, and held employees and customers at gunpoint as they stole approximately $1.3 million worth of Rolex watches.  The men then fled the store without being apprehended.      

The Federal Bureau of Investigation, Kent County Sheriff Department, and West Bloomfield Police Department coordinated their investigative efforts and began to piece together various pieces of evidence to identify the armed robbers.  Nathaniel Pembrook’s blood, and thus, DNA were found at the Medawar Jewelers location.  Investigators discovered that Pembrook checked himself into Pennsylvania Prysberatian Hospital in the early morning hours of April 23, 2014 complaining of a gunshot wound.  The hospital removed the bullet from Pembrook’s arm and Michigan State Police laboratory personnel were able to match the fired bullet to the Medawars owner’s firearm.  Additionally, investigators tracked down video and cell phone information that helped to place all of these men from Philadelphia in Michigan and more specifically the robbery locations during the times of the robbery.

Law enforcement is still attempting to identify the final two persons associated with this robbery crew.  If anyone has any information about those person’s identities, they are asked to contact the Federal Bureau of Investigation.

Briley, Calhoun, and Johnson are all scheduled to be sentenced next Friday, May 13, 2016 in the federal courthouse in Detroit.

"Armed robberies create a level of fear and risk to life that are unacceptable," McQuade said. "We are grateful for the collaboration of law enforcement agencies across state lines to build this investigation and bring these offenders to justice."

"The lengthy sentence imposed today, and previous convictions, are the result of hundreds of hours of work and dedication of our team of investigators and prosecutors." said, David P. Gelios, Special Agent in Charge, FBI Detroit Division. "The convictions and lengthy sentence should serve as a reminder to anyone who would travel to Michigan with the intent to commit a crime, particularly violent crimes, that the FBI, along with its federal, state and local partners, will locate them and bring them to justice."  

The case was prosecuted by Assistant United States Attorneys Daniel Lemisch and Christopher Graveline

Twice-annual event takes place from 10 a.m. to 2 p.m. April 30

Detroit, MI – After collecting and destroying 5.5 million pounds—2,762 tons—of unused prescription drugs in the past 5 years, the U.S. Drug Enforcement Administration (DEA) is continuing its efforts to take back unused, unwanted and expired prescription medications.  The DEA invites the public to bring their potentially dangerous, unwanted medicines to one of over 5,000 collection sites around the country, including over 440 sites in the Detroit Field Division, that are manned by more than 3,800 of DEA’s tribal and local law enforcement partners.  This service is free of charge, with no questions asked.

The public can find a nearby collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and entering their zip code into the search window, or they can call 800-882-9539.  Only pills and other solids, like patches, will be accepted—the public should not bring liquids, needles or other sharps to take back sites.

America is presently experiencing an epidemic of addiction, overdose and death due to abuse of prescription drugs, particularly opioid painkillers.  6.5 million Americans abuse prescription drugs, according to the most recent National Survey on Drug Use and Health, more than abuse cocaine, heroin, and hallucinogens combined. 

U.S. Attorney for the Eastern District of Michigan, Barbara McQuade said, “Prescription pill addiction has exploded in Michigan, and has led to a resurgence in heroin use and overdose deaths,” McQuade said.  “We appreciate DEA’s effort to remove this poison from homes so that it does not end up in the wrong hands.”

DEA Special Agent in Charge Timothy J. Plancon said, “Most prescription drug abusers get their pills from their own family, or from their friends.  Please take the proactive step to reduce substance abuse in the United States by removing unwanted prescription drugs from your home.”

Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms.  The removal from homes of unwanted prescription pills that can be abused, stolen or resold is an easy way to help fight the epidemic of substance abuse and addiction.

U.S. Department of Justice

Drug Enforcement Administration

Timothy J. Plancon

Special Agent in Charge

Detroit Field Division

www.dea.gov

 

Date:  April 29th, 2016

Contact: Rich Isaacson

Number: (313) 234-4310

A former Saline man pleaded guilty today to identity theft and wire fraud, United States Attorney Barbara L. McQuade announced today. 

United States Attorney McQuade was joined in the announcement by Jarod J. Koopman, Special Agent in Charge, Internal Revenue Service – Criminal Investigation.

Bradley Raymond Laboe, 54, a resident of Onsted, Michigan and previously of Saline, Michigan entered the guilty pleas before U.S. District Judge Victoria A. Roberts.

Laboe pleaded guilty to the charges in an Information that was filed earlier this month.  According to the court document, Laboe stole personal information of approximately 77 elderly residents of Northern Ohio and used that stolen personal information to file fraudulent tax returns.  Laboe used the personal information to electronically file 85 fraudulent tax returns with the IRS from his residence in Saline, Michigan.  The fraudulent tax returns claimed earnings from forms W-2 and various Schedule A deductions and sought refunds of over a half million dollars.  However, a majority of the victims were actually retired and receiving Social Security benefits.  In furtherance of the scheme, Laboe opened several bank accounts and directed the fraudulent refunds to be electronically deposited into these accounts.

Laboe is scheduled to be sentenced on August 15 at 2:30 p.m.  The maximum penalty for the wire fraud charge is 20 years imprisonment and/or a fine of $250,000 and the maximum penalty for the identity theft violation is 15 years imprisonment and/or a $250,000 fine.

“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” said Special Agent in Charge Jarod J. Koopman.  “Filing fraudulent tax returns in the names of other individuals not only results in a severe harm to those victims whose identities were stolen, but creates a significant monetary loss to the U.S. Treasury.”

This case was investigated by Special Agents of the Internal Revenue Service – Criminal Investigation and Assistant United States Attorney Ross MacKenzie prosecuted the case.

The U.S. Attorney's Office for the Eastern District of Michigan has reached a settlement with a Saginaw hospital to ensure effective communication with individuals who are deaf or hard of hearing, U.S. Attorney Barbara L. McQuade announced today. The agreement under the Americans with Disabilities Act (“ADA”) resolves a complaint filed with the U.S. Attorney’s Office alleging that HealthSource Saginaw failed to provide a sign language interpreter to a deaf patient at one of its outpatient clinics.  HealthSource Saginaw fully cooperated with the investigation into this matter.

The settlement stemmed from a complaint submitted by a mother in Flint who alleged that HealthSource Saginaw violated the ADA by failing to provide appropriate auxiliary aids and services, including sign language interpreter services, to her teenage son, who is deaf, while he received outpatient treatment at the Saginaw hospital.  According to the complaint, the minor was provided with an interpreter while receiving inpatient services at the hospital, but HealthSource Saginaw refused to provide him with an interpreter for follow-up outpatient treatment. 

The ADA prohibits discrimination against individuals with disabilities by health care providers. To ensure that people with disabilities have equal access to health care services, medical providers are obligated to provide effective communication for patients and companions who are deaf or hard of hearing. This assistance may include providing sign language interpreters to ensure that patients who are deaf are able to communicate with their health care providers or providing other auxiliary aids or services that are appropriate under the circumstances at no cost to the patient.  The appropriate aid or service depends on a variety of factors, including the nature, length, and importance of the communication; the context of the communication; the communication skills and knowledge of the individual who is deaf or hard of hearing; and the individual’s stated need for a particular type of auxiliary aid or service.

The settlement agreement requires HealthSource Saginaw to adopt specific policies and procedures to ensure that auxiliary aids and services are promptly provided to patients or companions who are deaf or hard of hearing, to provide training to hospital staff on the new policies and procedures and the overall requirements of the ADA; and to appoint an ADA coordinator at the hospital to ensure access to appropriate auxiliary aids and services.

“While this settlement demonstrates HealthSource Saginaw’s commitment to provide effective communication to people who are deaf or hard of hearing, this issue is much bigger than one hospital or one medical provider. More than 25 years after the enactment of the ADA, too many medical providers still fail to fulfill their obligations to provide effective communication to patients and their companions who are deaf.  We will continue our enforcement efforts to raise awareness and to ensure that the promise of the ADA is a reality for all Americans,” said U.S. Attorney Barbara L. McQuade.  

In the past year, the U.S. Attorney’s Office has resolved several cases involving equal access to health care for individuals with disabilities.  These cases include doctors and medical offices that have failed to provide sign language interpreters to patients who are deaf and medical offices that have failed to make their procedures accessible for patients who use wheelchairs.  The U.S. Attorney’s Office is continuing to investigate a number of other hospitals and medical offices to ensure that they are providing physical access to medical care for people with mobility disabilities, and effective communication for people who are deaf or hard of hearing, as part of the Department of Justice’s Barrier Free Healthcare Initiative.

For more information on the ADA and the DOJ’s Barrier Free Healthcare Initiative, please visit http://www.ada.gov/usao-agreements.html. Those interested in finding out more about these settlements, the obligations of health care providers and other places of public accommodation under the ADA, or filing a complaint, may contact the U.S. Attorney’s Office via email at usamie.civilrights@usdoj.gov, or by calling 313-226-9151. Individuals may also contact the Justice Department through its toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), access its ADA website at www.ada.gov, or file a complaint by email at ada.complaint@usdoj.gov. 

Flint, MI - The Department of Justice has designated the week of April 24-30, 2016, as National Reentry Week.  Supporting successful reentry is an essential part of the Department’s mission to promote public safety – because helping individuals return to productive, law-aiding lives can reduce the rate of recidivism. 

In recognition of Reentry Week, the U.S. Attorney's Office, Bureau of Alcohol, Tobacco, Firearms & Explosives, Michigan Department of Corrections and the Genesee County Prosecutor's Office has scheduled a “Face to Face" meeting to take place on April 26, 2016, between law enforcement and parolees.  The educational meeting is a collaborative effort designed to prevent recidivism among the offender population. 

Face-to-Face provides offenders with information about the consequences of committing new gun crimes, which includes stiff federal sentences with no chance of parole and prisons in distant locations.  The program also provides information about opportunities, such as education, job training, drug treatment, and employment from wrap around service organizations. 

Each year, more than 13,000 citizens return from prison to their communities in Michigan.  Statistics show that about one-third of them will reoffend. Offenders identify joblessness as their biggest barrier to success, and research shows that unemployment and crime go hand-in-hand. Sending returning citizens back to their communities with no ability to get a job is a recipe for recidivism and a costly mistake.  Taxpayers pay about $34,000 a year to incarcerate a single prisoner.  Rather than watching returning citizens go back to prison through the revolving door, it makes fiscal sense to invest in helping them find jobs.

“We are taking a targeted approach to reducing crime by telling offenders about of the consequences of committing new crimes and about the support services that are available to help them succeed outside of prison,” stated United States Attorney Barbara McQuade.

Media is welcome to attend the meeting which will be held from 2:00 p.m. to 3:00 p.m. in the City Hall Dome, located on the grounds of the City of Flint Municipal Service Campus, 1101 S. Saginaw Street, Flint, MI.  Immediately following the meeting U.S. Attorney Barbara McQuade and ATF Special Agent in Charge Robin Shoemaker will hold a media availability. The Dome is located on E. 7th St, just east of S. Saginaw Street.  Parking is accessible off 7th street.

For more information, please contact Gina Balaya at (313) 226-9758 or Robert Poikey at (313) 226-9120.

GUIDELINES:

PHOTOGRAPHERS WILL NOT BE ALLOWED TO SHOOT THE FACES OF PAROLEES OR PROBATIONERS, ONLY THE FACES OF LAW ENFORCEMENT OFFICIALS AND THE BACKS OF HEADS OF THE AUDIENCE MEMBERS.  REPORTERS MAY CONDUCT INTERVIEWS WITH LAW ENFORCEMENT OFFICIALS ONLY AND WILL NOT IDENTIFY PAROLEES OR PROBATIONERS IN PRINT, INTERNET OR BROADCAST MEDIA.

 

The leader of the Bounty Hunter Bloods violent street gang was sentenced to 30 years in prison today, U.S. Attorney Barbara L. McQuade announced.    

McQuade was joined in the announcement by Robin Shoemaker, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Detroit Police Chief James Craig, whose departments led the investigation as part of the Detroit One collaboration. 

U.S. District Judge Nancy G. Edmunds sentenced Ramiah Jefferson, 27, of Detroit, a/k/a “Nightmare,” following his conviction at trial in August for racketeering conspiracy and possession of a firearm in furtherance of a crime of violence.  Jefferson directed the murder and attempted murders of rival street gang members, furnished guns and encouraged gang members to commit violent crimes and narcotics trafficking.

Evidence at trial showed that the Bounty Hunter Bloods operated primarily in northwest Detroit, but their illegal activities extended outside of Michigan from California to North Carolina.  Their crimes included murders, carjackings, armed robberies, drive-by-shootings, home invasions, arsons and witness intimidation. 

“The Detroit One partners are working to reduce violent crime through gang prevention and intervention, but sometimes enforcement actions like this one are necessary,” McQuade said.  “When street gangs commit violent acts and endanger innocent victims, we will use the full force of the law to remove them from our neighborhoods.”

“ATF’s primary mission is to protect our neighborhoods from violent organized street gangs,” said S. Robin Shoemaker, ATF Special Agent in Charge.  “The significant federal sentences of the Bounty Hunter Bloods street gang leaders are the result of Detroit One initiative, an ongoing cooperative federal and state effort to combat violent gang and gun violence. Violent crime plagues our communities in many ways, but the link to most is the illegal possession and use of firearms by prohibited individuals”.   

Bounty Hunter members extensively used social media as a means of self-promotion and communication.  Members posted photographs on their personal social networking sites that highlighted their affiliation with the Bounty Hunters as well as their gang-related accomplishments.  For example, on December 27, 2010, Jefferson utilized Facebook to direct the murder or attempted murders of rival Avon Gangster gang members.  Jefferson posted that his fellow Bounty Hunters needed to “knock them down one by one” and that it was “huntin’ season.”  Bounty Hunter members also created rap songs, amplifying their allegiance to the gang.  Members would post these songs, along with videos, photographs and messages on social networking sites to celebrate and project the violent culture of the gang.

Evidence at trial demonstrated that the way members advanced in the gang was by “putting in work,” which meant committing murders, robberies, carjackings, home invasions, drug-deals and other acts of violence against rival gangs.  One of these carjackings and murders occurred when members of the Bounty Hunter Bloods attempted to carjack a vehicle outside of a CVS pharmacy on Schaefer Road in February 2014.  That carjacking led to the murder of the CVS security guard, Courtney Meeks, when he attempted to prevent the carjacking of a mother and her infant son.  The Wayne County Prosecutor’s Office successfully prosecuted Jamare Rucker and Jeremy Jackson, both Bounty Hunter members, with both men receiving 33-60 year sentences for second degree murder and a consecutive two years for felony firearm convictions.      

Evidence at trial also established that the Bounty Hunter Bloods were responsible for the murder of Marquise Robinson, a young man who was brutally murdered by members of this street gang because it was believed that he refused to come to the aid of a Bounty Hunter member, David Lamar Gay.  The Wayne County Prosecutor’s Office successfully prosecuted the main shooter, Jayjuan Watts, who is now serving a life sentence for his crime.  The U.S. Attorney’s Office successfully prosecuted David Lamar Gay for his role in the murder as part of this current prosecution.     

In addition to Jefferson, the following Bounty Hunter Blood members were convicted and sentenced:

Evan Johnson, 24, of Detroit, a/k/a “Unkle Murda,” convicted of RICO conspiracy and possession of a firearm in furtherance of a crime of violence and sentenced to 30 years’ imprisonment;

Alexander Deshawn George, 20, of Detroit, a/k/a “Bullet,” convicted of RICO conspiracy and possession of a firearm in furtherance of a crime of violence and sentenced to 18 years’ imprisonment;

David Lamar Gay, 22, of Toledo, Ohio, a/k/a “Glock,” convicted of murder in aid of racketeering and sentenced to 17 ½ years’ imprisonment;

Drakkar Beral Cunningham, 25, of Detroit, a/k/a “Rellz,” convicted of RICO conspiracy and possession of a firearm in furtherance of a crime of violence and sentenced to 5 years’ imprisonment;

Everette Ramon George, 21, of Detroit a/k/a “Klout,” convicted of assault with a dangerous weapon in aid of racketeering and sentenced to four years, nine months’ imprisonment;

Mario Garnes, 28, of Detroit, a/k/a “Bloodhound,” convicted of RICO conspiracy and sentenced to 42 months’ imprisonment; and       

Gerald Deshawn Turner, 25, of Detroit, a/k/a “G-Red,” convicted of RICO conspiracy and sentenced to time served and three years of supervised release.

Marcus Andre Harvey, 23, of Detroit, a/k/a “Ceasar,” was also convicted of RICO conspiracy and possession of a firearm in furtherance of a crime of violence and is scheduled to be sentenced on May 2, 2016.

This indictment stems 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 seek to identify and arrest individuals and groups initiating 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 Latin Counts, Vice Lords and others, and a reduction in homicide and violent crime in Detroit.

The case was prosecuted by Assistant United States Attorneys Eric Doeh, Andrew Goetz and Eaton Brown.

 

 

An indictment was unsealed today charging a doctor and three other individuals with conspiracy to illegally distribute prescription drugs, U.S. Attorney Barbara L. McQuade announced today.

McQuade was joined in the announcement by Acting Special Agent in Charge Timothy J. Plancon, U.S. Drug Enforcement Administration (DEA), Detroit Field Division and Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General - Chicago Region.

Charged in the indictment are:

Dr. Michael Weiss, D.O. 63, of Troy

Edgarten Howard, 43, of Detroit

Carlos Johnson, 40, of Detroit

Ricky Easley, 30, of Detroit

The indictment alleges that from January 2013 through April 2015, Weiss conspired with the other defendants to write a large number of prescriptions for highly addictive controlled substances for supposed patients, who did not have a legitimate medical need for the drugs. Weiss primarily prescribed Roxicodone and its generic equivalent, oxycodone, and promethazine cough syrup. He saw the supposed patients in Howard’s home, where Howard, Johnson, and Easley paid Weiss cash for his services. Howard, Johnson, and Easley then obtained the drugs that Weiss authorized through the prescriptions, and sold them on the street.

The indictment alleges that Weiss caused Medicare to pay more than $250,000, and Blue Cross almost $40,000, for the illegitimate prescriptions. The indictment also alleges that Weiss submitted about 950 claims to Medicare and Blue Cross for providing services to the supposed patients, although Weiss never actually provided the services. Weiss received about $65,000 through the fraudulent bills. 

 “Diversion of prescription pills to the street market promotes the addiction to painkillers that leads to overdose deaths,” McQuade said. “We are focusing on charging doctors, pharmacists and the networks that are putting this poison on the streets.”

DEA Special Agent in Charge Timothy J. Plancon stated, “This indictment is just one example of DEA's determination and commitment to combat the troubling prescription drug abuse problem in this country. The doctor involved in this investigation abused his position of trust and jeopardized the lives of many individuals by leading this conspiracy to distribute dangerous controlled substances onto the streets of southeast Michigan and beyond.  This indictment should make it clear that the DEA and our law enforcement partners are focused on investigating and pursuing those that are illegally diverting prescription drugs into our communities.”

 "Physicians have a responsibility to provide care that is medically necessary and is in the best interest of their patients" said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General - Chicago Region. "Physicians who facilitate and contribute to the illegal diversion of prescription medications will be held accountable."

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

 

The case was investigated by special agents and task force officers of the DEA and HHS-OIG.  The case is being prosecuted by Assistant U.S. Attorney Lynn Helland.

A licensed physician who worked for a Detroit-area medical practice pleaded guilty today for his role in a $2.4 million health care fraud scheme.

Assistant Attorney General Leslie R. Caldwell 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 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.

Ali Elhorr, M.D., 47, of Dearborn, Michigan, pleaded guilty before U.S. District Judge Nancy G. Edmunds of the Eastern District of Michigan to one count of conspiracy to commit health care fraud.  A sentencing hearing is scheduled for Aug. 16, 2016.

Elhorr worked at House Calls Physicians P.L.L.C., which was located in Allen Park, Michigan.  According to admissions in his plea agreement, from approximately September 2009 to September 2012, Elhorr conspired with others, including his brother, Dr. Hicham Elhorr, to commit health care fraud by agreeing to serve as a “supervising” physician for unlicensed individuals purportedly providing in-home physician services.  The unlicensed individuals prepared medical documentation that Elhorr and other licensed physicians signed as if they had performed the visits when, in fact, Elhorr and the other licensed physicians had not treated the beneficiaries, he admitted.  The visits were then billed as if performed by the licensed physicians, according to the plea.

Elhorr admitted that between approximately March 2008 and September 2012, House Calls Physicians billed Medicare more than $11.5 million for the cost of physician home services.  Of that amount, Elhorr admitted that he caused the submission of approximately $2.4 million in false and fraudulent claims.

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.  Former Assistant Chief Catherine K. Dick and Trial Attorneys Matthew C. Thuesen, F. Turner Buford and Shubhra Shivpuri of the Fraud Section prosecuted the case.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion.  In addition, the HHS’s 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.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov. 

Detroit - U.S. Attorneys are joining forces with local law enforcement and community leaders for a series of events around the country to address backlash against Muslim, Arab, Sikh and South Asian Americans following the tragic terrorist attacks in Brussels, Paris and San Bernardino, California. The 14 events in 11 districts will build on both the Justice Department’s prosecutorial work in countering post-September 11th backlash, as well as its outreach efforts, including the new interagency initiative to combat religious discrimination throughout the country. From April 13 through 20, U.S. Attorneys in California, Colorado, Connecticut, Idaho, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, Ohio and Utah will work with community leaders and law enforcement to address discrimination, violence and harassment targeting people because of what they look like, which country they come from or where they worship. The aim is to reaffirm the Department of Justice’s commitment to protecting civil rights and preventing and prosecuting hate crimes. Barbara L. McQuade, United States Attorney for the Eastern District of Michigan, along with FBI Special Agent in Charge David P. Gelios, Washtenaw County Sheriff Jerry Clayton and other law enforcement officials, will participate in a listening session with students from the University of Michigan and President Mark Schlissel regarding bias-related crime issues with a press briefing to follow. The event will take place today at 4pm at the University of Michigan Law School, Jeffries Lounge, South Hall 701 S. State Street, First Floor, Ann Arbor, MI 48109. A press briefing will follow at 5:15pm... "Federal law enforcement will take action against violence or threats of violence directed at anyone based on religion, ethnicity or national origin," McQuade said. "Even derogatory speech about Muslim Americans that is protected by the First Amendment can have adverse consequences by providing terrorist recruiters with propaganda to promote the false narrative that America is at war with Islam." During the last several months, individuals who are, or who are perceived to be, Muslim, Arab, Sikh and South Asian have been targeted for harassment and violence around the country. A Connecticut man pleaded guilty to firing a high-powered rifle at a mosque; a Florida man pleaded guilty to threatening to firebomb two mosques and shoot their congregants; a former Missouri man pleaded guilty to violating the civil rights of others by leading a conspiracy to deface a local Islamic center with graffiti and burn two copies of the Qur’an; and a New York man was sentenced to 13 months in prison for emailing death threats to the executive director of an Islamic advocacy group. Places of worship also face discrimination through unlawful barriers to construction in many communities around the country. In the last year, the Justice Department filed suit against Des Plaines, Illinois, over the city’s denial of rezoning to allow a Muslim congregation to use a vacant office building as a mosque. The complaint alleged that the city treated the mosque less favorably than it has treated nonreligious assemblies, discriminated against the mosque based on religion and imposed a substantial burden on the mosque members’ religious exercise without justification. The Justice Department also closed its investigation into Norwalk, Connecticut, after the city made changes to treat religious assemblies equally with nonreligious assemblies in five of its zoning districts. The department had opened an investigation of Norwalk’s zoning practices in 2012 in response to the city’s denial of a special use permit to the Al Madany Islamic Center to build a mosque on land it had bought in a residential zoning district. Backlash against Muslim, Arab, Sikh and South Asian Americans can have a particularly harmful impact on education, employment and housing. In March, the Civil Rights Division announced that the Educational Opportunities Section launched a new enforcement initiative with the U.S. Attorneys’ Offices to strengthen our efforts to combat religious discrimination in schools and other educational settings. The new intiative, together with Justice Department’s recent work in Bakersfield, California; Lewisville, Texas; Pine Bush, New York; Dearborn Heights, Michigan; DeKalb County, Georgia; and many more cities and counties through the nation, will help ensure that schools remain free from discrimination, harassment and violence for all students. This effort is a reflection of the Department of Justice’s long-standing commitment to working to protect Muslim, Sikh, Arab and South Asian Americans from threats and violence directed at them because of their religion or ethnicity, and to prevent acts of discrimination against them in the workplace, schools or elsewhere. Since September 11th, the Department of Justice has investigated over 1,000 incidents involving acts of violence, threats, assaults, vandalisms and arsons targeting Arab, Muslim, Sikh and South Asians, and those perceived to be members of these groups. The Civil Rights Division and U.S Attorneys’ offices have brought prosecutions against more than 60 defendants in such cases, with 57 convictions to date. # # #

A Canadian citizen was sentenced today to 57 months in prison as a result of pleading guilty to six counts of smuggling turtles, some of which were endangered, from the United States in violation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora, U.S. Attorney Barbara L. McQuade announced.

McQuade was joined in the announcement by Special Agent in Charge Jill Birchell of the U.S. Fish and Wildlife Service.

Kai Xu, 27, of Windsor, Ontario was sentenced today before United States District Judge John Corbett O’Meara in Ann Arbor. As part of his sentence, Judge O’Meara ordered to pay over $17,000 in restitution for the care of the turtles.

At the time of the plea hearing, Xu admitted that on six occasions in 2014 he entered the United States from Canada and traveled to Fed Ex and UPS facilities in the metro-Detroit area, where he retrieved packages that contained a variety of different species of live turtles. Xu then illegally smuggled the turtles out of the country using three methods. On some instances, Xu repackaged the turtles and shipped them directly to China, concealing the wildlife in snow boots. On one occasion, Xu taped the live turtles to his legs and groin (a total of 51 live turtles) and returned to Canada, smuggling the turtles in his pants to conceal them from customs officials. Finally, on the day of Xu’s arrest, he packaged over 1000 turtles into suitcases that he sent with a runner he had hired to fly directly from Detroit to Shanghai. The turtles were recovered by U.S. Fish and Wildlife special agents. They had been packaged into boots and cereal boxes and concealed within luggage.

Special Agent Birchell stated, “One of our highest priorities is to investigate individuals and companies who are involved in the unlawful commercial trafficking and smuggling of our Nation's fish and wildlife. This investigation demonstrates our commitment to pursuing those who decimate wildlife populations for their unfettered greed, depriving future generations of enjoying these species in their native habitats.”

The case was investigated by the U.S. Fish and Wildlife Service and the Wildlife Enforcement Directorate within Environment and Climate Change Canada. U.S. Customs and Border Protection and Homeland Security Investigations also assisted with the investigation.

An Ohio man pleaded guilty to fraud charges for his role in a scheme to defraud Medicare out of approximately $6.2 million while he acted as an unlicensed physician at a Detroit in-home physician services company.

Assistant Attorney General Leslie R. Caldwell 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 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.

Cecil Alexander Kent Jr., 58, of Eastlake, Ohio, pleaded guilty yesterday before U.S. District Judge John Corbett O’Meara of the Eastern District of Michigan to one count of conspiracy to commit health care fraud, two counts of health care fraud and five counts of making false statements relating to health care matters.  Sentencing is scheduled for Aug. 16, 2016, before Judge O’Meara.

Kent admitted that while he was employed at B&M Visiting Doctors PLC (B&M) and while he was unlicensed, he saw patients and falsified related patient records, including medical documents and billing documents, all under the name of a licensed medical doctor.  He admitted that among those documents falsified were prescriptions for controlled substances, such as Fentanyl, that he personally wrote using the name and U.S. Drug Enforcement Administration (DEA) number of a licensed physician.  Kent knew that Medicare did not pay for patient visits performed by unlicensed individuals, but that such claims were nonetheless submitted to Medicare through B&M, he admitted.

Charles McRae, 61, an unlicensed physician and part owner of B&M, and Alvin Williams, 65, an unlicensed physician, both of Detroit, were charged in the same indictment as Kent and pleaded guilty for their participation in this scheme to defraud.  McRae and Williams will be sentenced in July 2016. 

The FBI and HHS-OIG investigated this 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 Melissa Aoyagi and Assistant Chief Robert Zink of the Criminal Division’s Fraud Section prosecuted the case.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 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.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov. 

The owner and operator of a Detroit-area home health care agency pleaded guilty today for his participation in a $4 million health care fraud scheme.  

Assistant Attorney General Leslie R. Caldwell 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 (HHS-OIG) Chicago Regional Office made the announcement.

Naseem Minhas, 49, of West Bloomfield, Michigan, pleaded guilty before U.S. District Judge Nancy G. Edmonds of the Eastern District of Michigan to count of conspiracy to commit health care fraud.  Sentencing has been scheduled for Sept. 6, 2016, before Judge Edmonds. 

According to his plea agreement, Minhas was the owner and operator of TriCounty Home Care Services Inc. (TriCounty), a home health care agency that purported to provide home health care and physical therapy services to eligible Medicare beneficiaries in the greater Detroit metropolitan area.  According to admissions made as part of his plea agreement, Minhas paid a physician and recruiters to refer Medicare beneficiaries to TriCounty and sign medical documents falsely certifying that they required home health care.  Minhas, a licensed physical therapist, also admitted that he assisted in creating fake patient files to make it appear as though the patients needed and received services that were unnecessary or not provided.

Between February 2009 and November 2013, Medicare paid TriCounty $4 million as a result of these false and fraudulent claims, Minhas admitted.

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 Attorneys Elizabeth Young and Thomas Tynan, Fraud Section Special Trial Attorney Katie R. Fink and Assistant U.S. Attorney Katherine Wagner of the Eastern District of Michigan are prosecuting the case.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 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.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.            

The owner and operator of a Detroit-area home health care agency was sentenced to 57 months in prison today for his participation in a $3.4 million health care fraud scheme. 

Assistant Attorney General Leslie R. Caldwell 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 Region made the announcement.

Mohammad Rafiq, 49, of West Bloomfield, Michigan, was sentenced by U.S. District Judge George Caram Steeh of the Eastern District of Michigan, who also ordered Rafiq to pay $3,471,906.02 in restitution and to forfeit the same amount. 

According to his plea agreement, Rafiq was the owner and operator of Perfect Home Health Care (Perfect), a home health care agency that purported to provide home health care and physical therapy services to eligible Medicare beneficiaries in the greater Detroit metropolitan area.  According to admissions made as part of his plea agreement, Rafiq paid physicians and recruiters to refer Medicare beneficiaries to Perfect and sign medical documents falsely certifying that they required home health care.  Rafiq also directed patient recruiters and Perfect employees to pay cash kickbacks to Medicare beneficiaries in exchange for signing multiple blank physical therapy records, he admitted. 

Between February 2009 and November 2013, Medicare paid Perfect approximately $3.4 million as a result of these false and fraudulent claims, Rafiq admitted.

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.  This case is being prosecuted by Trial Attorney Elizabeth Young and Special Trial Attorney Katie R. Fink of the Fraud Section and Assistant U.S. Attorney Katherine Wagner of the Eastern District of Michigan.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 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.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov. 

A Jackson party store owner was sentenced today to 30 months in prison after pleading guilty to a fraud scheme to burn down his store to collect insurance proceeds, U.S. Attorney Barbara L. McQuade announced today                         

McQuade was joined in the announcement by Robin Shoemaker, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearm, and Explosives (ATF), Marlon Miller, Special Agent in Charge, Homeland Security, Immigration and Customs Enforcement, and Director Matthew Heins, Jackson Police Department.

Rajinder Singh, 25, formerly of Jackson, Michigan was sentenced by U.S. District Judge Judith Levy in Ann Arbor, Michigan.  Judge Levy also ordered Singh to pay restitution in the amount of $10,000. 

According to court records, Singh admitted that in May 2014, he conspired with others to intentionally set fire to his business, Robinson’s Party Store, located at 1233 S. West Avenue, Jackson, Michigan. The object of the conspiracy was to obtain the insurance proceeds for the business.  Singh agreed to pay the men to set the fire. In pleading guilty to charges of  conspiracy to commit malicious use of fire, wire fraud, misleading communication to hinder investigation of a federal offense and immigration document fraud, Singh admitted to making a fraudulent claim to his insurance company.  Singh also admitted that he lied to a police detective by falsely stating that the fire was likely racially motivated on the mistaken belief that he is an "Arab."  Singh filed a claim with his insurance company seeking payment of at least $400,000 for the damage to his building, the inventory lost in the fire and lost business income.

A month after the fire, Singh, prepared, or caused to be prepared, a Department of Homeland Security Form N-400 (Application for Naturalization) in an attempt to become a naturalized United States citizen. Several questions on the form required Singh to disclose his entire criminal history, even crimes for which he had not been charged. In response to those questions, Singh answered falsely when asked if he had ever committed, assisted in committing or attempted to commit a crime or offense for which he had not be arrested. Singh signed the form under penalty of perjury and mailed it to the U.S. Citizenship and Immigration Services offices.

“Committing any fraud scheme harms victims, but intentionally setting a fire creates a danger to public safety and firefighters that far exceeds the financial loss,” McQuade said.  “This defendant attempted to exploit laws designed to protect people from hate crimes.” 

“Arson for profit is not a victimless crime. Our communities as a whole become the victims because arson destroys property and places and increases economic burden on our communities”, said ATF Special Agent in Charge S. Robin Shoemaker.   “ATF is committed to the investigation and prevention of arson and arson for profit schemes. I would also like to thank the Jackson Police and Fire Departments, Homeland Security, Immigration and Customs and the Eastern district of the United States Attorney’s Office.” 

“Rajinder Singh sentence reflects his selfish actions of setting his business on fire to collect insurance money and used race to fuel his lie. He placed peace officers and firemen lives in danger, in the name of greed,” said Marlon V. Miller, special agent in charge of HSI Detroit.  “HSI remains committed to working with our law enforcement partners to investigate and expose fraudulent activities regardless of the scheme.” 

“This case is another outstanding example of interagency cooperation leading to conviction of Mr. Singh for his criminal activity in the City of Jackson, stated Chief Heins.  "The ongoing partnership between the Jackson Police Department, ATF, and U.S. Attorney’s Office is invaluable in a case of this nature.  Jackson Police Department Detectives Holly Rose and Gary Schuette were instrumental in bringing this case to the forefront.”

McQuade thanked the agents of ATF for their investigation of the case.  She also thanked the Jackson Police Department for assisting in the investigation

The case was prosecuted by Assistant U.S. Attorneys John O’Brien and Shane Cralle.