Eastern District of Michigan

DETROIT – A Detroit gas station owner has been charged with several federal crimes stemming from his involvement with a Detroit-based stash house that held over 40 kilograms of fentanyl, a pill press, and a variety of other materials used to manufacture fentanyl pills, United States Attorney Dawn N. Ison announced today.

Ison was joined in the announcement by Orville Greene, Special Agent in Charge of the Drug Enforcement Administration and Chief Thomas Goralski, Livonia Police Department.

On March 28, 2024, law enforcement executed search warrants at three locations connected to Barry Willis, 55, a resident of Clinton Township and owner of a Detroit gas station. Officers searched Willis’s primary residence in Clinton Township, his gas station in Detroit, as well as his suspected stash house in Detroit. In the basement of the stash house, officers recovered over 40 kilograms of fentanyl in both pill and powder form, as well as a hoard of materials for manufacturing fentanyl pills such as a pill press, narcotics scales, and drug recipes. Officers further located two handguns at the stash house, one at Willis’s residence, and another at his gas station, as well as over $100,000 in cash from Willis’s Clinton Township residence.

“This case represents the largest law enforcement seizure of fentanyl in the state of Michigan to date. We are incredibly proud of our law enforcement partners who conducted this investigation and recovered these deadly substances before they could harm members of our community.,” U.S. Attorney Ison said.

“This amount of fentanyl has the potential to provide nearly two deadly doses to every man, woman and child living in the state of Michigan. We will continue to work with our partners to pursue anyone pushing poisons into our communities and bring them to justice,” said Special Agent in Charge Greene.

"This major seizure of fentanyl has saved lives. The great partnerships we have with law enforcement at the federal, state and local levels in southeast Michigan, enable us to make these types of investigations successful,” said Chief Goralski.

Willis has now been indicted for possession of over 400 grams of fentanyl with the intent to distribute it, possession of firearms in furtherance of a drug trafficking crime, and possession of firearms by a convicted felon. He faces a mandatory minimum sentence of 20 years’ imprisonment if convicted of the charges in the indictment.

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

This case was investigated by the Livonia Police Department, including officers assigned to the Livonia Police Intelligence Bureau, and the Drug Enforcement Administration. The Michigan State Police and the Clinton Township Police Department also assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorney Erin Ramamurthy.

DETROIT— The Justice Department announced today that Michigan landlord, Mohamad Hussein, has agreed to pay $185,000 in damages and a civil penalty to the government to resolve the Fair Housing Act (FHA) lawsuit concerning Hussein’s sexual harassment of actual and prospective female tenants. Hussein has owned and managed over 15 rental properties in and around Dearborn Heights, Michigan, since 2013.

“No one should be denied the opportunity to live in safe and affordable housing because of their refusal to submit to a landlord’s sexual demands,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When landlords sexually harass their tenants, they deprive tenants of the ability to feel safe and secure in their own homes. The Justice Department is committed to holding predatory landlords accountable to ensure that all tenants are protected from unlawful discrimination.”

“Housing is one of our most basic needs, and no one should have to endure sexual harassment in order to keep a roof over their head,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “My office is committed to enforcing the Fair Housing Act to prevent all forms of harassment in housing. We appreciate the partnership and support of the Civil Rights Division to advance those efforts here in the Eastern District of Michigan.”

The lawsuit, filed in March 2023, alleged that Hussein subjected actual and prospective female tenants to sexual harassment by making unwelcome comments and advances and offered actual and prospective female tenants housing-related benefits in exchange for engaging in sex acts with him.

Under the terms of the proposed consent decree, approved today by the U.S. District Court for the Eastern District of Michigan, Hussein will pay $185,000 in damages to eight former and prospective female tenants harmed by the harassment and a civil penalty to the United States. Hussein will be required to take steps to vacate any retaliatory eviction judgments obtained against these tenants. He will be permanently enjoined from personally managing rental properties in the future and will be required to retain an independent property manager to manage any rental properties he owns. Finally, the consent decree will require Hussein to implement non-discrimination policies and complaint procedures to prevent sexual harassment at his properties in the future and to take fair housing training.     

The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the department’s initiative is to address, deter and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 39 lawsuits alleging sexual harassment in housing and recovered more than $12 million for victims of such harassment.

The Justice Department’s Civil Rights Division, along with U.S. Attorneys’ Offices, enforces the FHA, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online

The Justice Department announced today that Michigan landlord, Mohamad Hussein, has agreed to pay $185,000 in damages and a civil penalty to the government to resolve the Fair Housing Act (FHA) lawsuit concerning Hussein’s sexual harassment of actual and prospective female tenants. Hussein has owned and managed over 15 rental properties in and around Dearborn Heights, Michigan, since 2013.

“No one should be denied the opportunity to live in safe and affordable housing because of their refusal to submit to a landlord’s sexual demands,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When landlords sexually harass their tenants, they deprive tenants of the ability to feel safe and secure in their own homes. The Justice Department is committed to holding predatory landlords accountable to ensure that all tenants are protected from unlawful discrimination.”

“Housing is one of our most basic needs, and no one should have to endure sexual harassment in order to keep a roof over their head,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “My office is committed to enforcing the Fair Housing Act to prevent all forms of harassment in housing. We appreciate the partnership and support of the Civil Rights Division to advance those efforts here in the Eastern District of Michigan.”

The lawsuit, filed in March 2023, alleged that Hussein subjected actual and prospective female tenants to sexual harassment by making unwelcome comments and advances and offered actual and prospective female tenants housing-related benefits in exchange for engaging in sex acts with him.

Under the terms of the proposed consent decree, approved today by the U.S. District Court for the Eastern District of Michigan, Hussein will pay $185,000 in damages to eight former and prospective female tenants harmed by the harassment and a civil penalty to the United States. Hussein will be required to take steps to vacate any retaliatory eviction judgments obtained against these tenants. He will be permanently enjoined from personally managing rental properties in the future and will be required to retain an independent property manager to manage any rental properties he owns. Finally, the consent decree will require Hussein to implement non-discrimination policies and complaint procedures to prevent sexual harassment at his properties in the future and to take fair housing training.     

The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the department’s initiative is to address, deter and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 39 lawsuits alleging sexual harassment in housing and recovered more than $12 million for victims of such harassment.

The Justice Department’s Civil Rights Division, along with U.S. Attorneys’ Offices, enforces the FHA, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.

DETROIT – A former police officer with the Warren Police Department in Michigan pleaded guilty today to one count of deprivation of rights under color of law.

Matthew Rodriguez, 49, pleaded guilty to using excessive force against an arrestee while fingerprinting and photographing him at a local detention facility.

“This police officer carried out a violent assault on a man who was doing nothing to harm or endanger him and then tried to cover up his crime,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Police officers are not above the law in our country and will be held accountable when they violate people’s civil and constitutional rights. When law enforcement abuses their authority, it erodes trust between the police and the community they are sworn to protect and serve. The Justice Department stands ready and willing to investigate and prosecute any police officer who unlawfully uses excessive force against those in their custody.”  

“The defendant’s actions in this case were shocking and flagrantly violate the standards of conduct we expect of all sworn law enforcement officers,” U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “This investigation, and today’s guilty plea, reflect my office’s commitment to protecting the rights of every citizen in the community, even those who are accused of committing crimes.”

“It is important for the citizens of Michigan to have faith in law enforcement officers and trust that they are performing their duties with integrity,” said Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office. “This incident should not be considered a reflection of the excellent work performed by the officers in serving and protecting the community every day. Our officers placed their lives on the line, day in and day out, for the citizens of this great state. However, it is important to maintain the highest standards and hold each other accountable as we honor our oaths of office. I would like to thank the city of Warren for their cooperation during our investigation.”

According to court documents, on June 13, 2023, then-officer Rodriguez was fingerprinting and photographing an arrestee, identified in court documents only as J.S., who had recently been brought to the Warren Police Department’s jail for processing. After taking J.S.’s fingerprints, Rodriguez struck J.S. multiple times and slammed J.S.’s head against the floor, causing injury to J.S. When Rodriguez began to assault him, J.S. was not physically resisting Rodriguez and posed no immediate threat to anyone.

During the plea hearing, Rodriguez admitted that he knew that his use of force against J.S. was unreasonable and contrary to department policy, and that he wrote a report in which he made false statements about the incident and omitted material information. J.S. suffered bodily injury from the beating.

The Warren Police Department publicly released footage of the assault in June 2023.

Rodriguez is scheduled to be sentenced on August 20. He faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.  

The FBI Detroit Field Office investigated the case.

Assistant U.S. Attorney Robert Moran for the Eastern District of Michigan and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division are prosecuting the case.

WASHINGTON – A former police officer with the Warren Police Department in Michigan pleaded guilty today to one count of deprivation of rights under color of law.

Matthew Rodriguez, 49, pleaded guilty to using excessive force against an arrestee while fingerprinting and photographing him at a local detention facility.

“This police officer carried out a violent assault on a man who was doing nothing to harm or endanger him and then tried to cover up his crime,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Police officers are not above the law in our country and will be held accountable when they violate people’s civil and constitutional rights. When law enforcement abuses their authority, it erodes trust between the police and the community they are sworn to protect and serve. The Justice Department stands ready and willing to investigate and prosecute any police officer who unlawfully uses excessive force against those in their custody.”  

“The defendant’s actions in this case were shocking and flagrantly violate the standards of conduct we expect of all sworn law enforcement officers,” U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “This investigation, and today’s guilty plea, reflect my office’s commitment to protecting the rights of every citizen in the community, even those who are accused of committing crimes.”

“It is important for the citizens of Michigan to have faith in law enforcement officers and trust that they are performing their duties with integrity,” said Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office. “This incident should not be considered a reflection of the excellent work performed by the officers in serving and protecting the community every day. Our officers placed their lives on the line, day in and day out, for the citizens of this great state. However, it is important to maintain the highest standards and hold each other accountable as we honor our oaths of office. I would like to thank the city of Warren for their cooperation during our investigation.”

According to court documents, on June 13, 2023, then-officer Rodriguez was fingerprinting and photographing an arrestee, identified in court documents only as J.S., who had recently been brought to the Warren Police Department’s jail for processing. After taking J.S.’s fingerprints, Rodriguez struck J.S. multiple times and slammed J.S.’s head against the floor, causing injury to J.S. When Rodriguez began to assault him, J.S. was not physically resisting Rodriguez and posed no immediate threat to anyone.

During the plea hearing, Rodriguez admitted that he knew that his use of force against J.S. was unreasonable and contrary to department policy, and that he wrote a report in which he made false statements about the incident and omitted material information. J.S. suffered bodily injury from the beating.

The Warren Police Department publicly released footage of the assault in June 2023.

Rodriguez is scheduled to be sentenced on August 20. He faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.  

The FBI Detroit Field Office investigated the case.

Assistant U.S. Attorney Robert Moran for the Eastern District of Michigan and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division are prosecuting the case.

A former police officer with the Warren Police Department in Michigan pleaded guilty today to one count of deprivation of rights under color of law.

Matthew Rodriguez, 49, pleaded guilty to using excessive force against an arrestee while fingerprinting and photographing him at a local detention facility.

“This police officer carried out a violent assault on a man who was doing nothing to harm or endanger him and then tried to cover up his crime,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Police officers are not above the law in our country and will be held accountable when they violate people’s civil and constitutional rights. When law enforcement abuses their authority, it erodes trust between the police and the community they are sworn to protect and serve. The Justice Department stands ready and willing to investigate and prosecute any police officer who unlawfully uses excessive force against those in their custody.”  

“The defendant’s actions in this case were shocking and flagrantly violate the standards of conduct we expect of all sworn law enforcement officers,” U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “This investigation, and today’s guilty plea, reflect my office’s commitment to protecting the rights of every citizen in the community, even those who are accused of committing crimes.”

“Police officers are trusted to determine when force is necessary and when it deprives people of their civil rights,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “FBI investigations like these are key to removing abusive officers from law enforcement and a step towards restoring trust with the community.” 

According to court documents, on June 13, 2023, then-officer Rodriguez was fingerprinting and photographing an arrestee, identified in court documents only as J.S., who had recently been brought to the Warren Police Department’s jail for processing. After taking J.S.’s fingerprints, Rodriguez struck J.S. multiple times and slammed J.S.’s head against the floor, causing injury to J.S. When Rodriguez began to assault him, J.S. was not physically resisting Rodriguez and posed no immediate threat to anyone.

During the plea hearing, Rodriguez admitted that he knew that his use of force against J.S. was unreasonable and contrary to department policy, and that he wrote a report in which he made false statements about the incident and omitted material information. J.S. suffered bodily injury from the beating.

The Warren Police Department publicly released footage of the assault in June 2023.

Rodriguez is scheduled to be sentenced on August 20. He faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.  

The FBI Detroit Field Office investigated the case.

Assistant U.S. Attorney Robert Moran for the Eastern District of Michigan and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division are prosecuting the case.

DETROIT – A Farmington Hills man was convicted yesterday by a federal jury for conspiring to steal Volkswagen and Audi vehicles from a lot in Pontiac, announced United States Attorney Dawn N. Ison. The charges stem from an investigation initiated by the Oakland County Sheriff’s Office Auto Theft Unit.

Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Sheriff Michael Bouchard of Oakland County.

Romane Porter, 47, was convicted after a 13-day trial before United States District Judge Denise Page Hood in Detroit. The jurors returned guilty verdicts on all four charges: one count of conspiracy to transport stolen vehicles, and three counts of transportation of stolen vehicles.

According to the evidence presented during the trial, beginning in March 2017 and continuing through September 2017, Porter and co-defendant Daniel Onorati, conspired with each other and others to steal approximately 61 recalled Volkswagen and Audi cars that were parked at the site of the former Pontiac Silverdome.

The court has scheduled Porter’s sentencing hearing for August 8, 2024. The defendant’s convictions on three counts of interstate transportation of stolen vehicles each carries up to 10 years in prison, and his conviction on one count of conspiracy to commit interstate transportation of stolen vehicles carries a maximum penalty up to 5 years in prison.

Co-defendant Daniel Onorati pleaded guilty to participating in the scheme and received a sentence of 20 months on April 26, 2022.

“Our office salutes the combined efforts of federal, state, and local law enforcement to break up this car theft conspiracy and bring its ringleader to justice,” said U.S. Attorney Ison. “This defendant and his co-conspirators stole dozens of vehicles and transported them across state lines for sale, and the jury has now held him accountable for his crimes.”

"Today's sentencing would not have been possible without the collaborative work of the FBI's Detroit Fraud & Financial Crimes Task Force and the Oakland County Sheriff Office's Auto-Theft Unit," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "Our office will continue to focus our investigative efforts on thwarting elaborate theft schemes and holding those accountable for their thievery."

“I am grateful for the partnership between our Auto Theft Unit, the FBI, and the US Attorney’s Office who brought this organized auto theft activity to a close,” said Sheriff Michael J. Bouchard. “These individuals were bold in their behavior in stealing such a large volume of vehicles from a well-known location. These criminals deserve to be punished to the fullest extent of the law.”

The case was investigated by agents of the Federal Bureau of Investigation and the Oakland County Sheriff’s Office Auto Theft Unit. The team was also assisted by the Special Investigations Section, Office of Investigative Services of the Michigan Department of State, as well as the Hardin County Sheriff’s Office and the Kentucky State Police. The case was prosecuted by Assistant United States Attorneys Trevor Broad and Louis Meizlish.

DETROIT – Former Romulus Mayor LeRoy Burcroff, 59, of Romulus, was sentenced to three years probation with four months home confinement following his theft and misuse of over $15,000 in campaign funds, announced United States Attorney Dawn N. Ison.

Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

Burcroff was elected mayor of the City of Romulus in 2014. As part of his election efforts, Burcroff established a committee to elect (CTE) fund entitled, “Committee to Elect LeRoy D. Burcroff.” According to court documents, over the next two-and-a-half years, Burcroff defrauded donors to his CTE account by using these campaign funds for his personal benefit rather than for his election. For example, in November 2017, Burcroff spent over $3,500 of his campaign donors’ money to pay for a family member’s wedding. Burcroff spent the CTE money on a church fee, a banquet room rental, flowers, and the wedding bar tab. In 2017 and 2018, Burcroff used CTE funds to pay over $11,600 in dues and expenses to a yacht club which he used for his personal benefit. On multiple occasions, Burcroff overpaid his yacht club dues using his campaign account, which resulted in the yacht club issuing a refund, which Burcroff deposited in his personal bank account. In 2018, Burcroff made a $1,000 donation of campaign funds to a trade industry with the hope that he would receive a promotion at his private sector job. In 2019, Burcroff spent over $4,000 of campaign funds on a personal vacation to Florida with friends.

United States Attorney Ison said, “Trust in our state’s campaign finance system is a critical component of a healthy representative democracy. Mr. Burcroff’s conviction and sentence underscores our commitment to ensuring that the citizens of the Eastern District are represented by public officials who have integrity and are seeking office not for their self-interest, but for the good of the people they are elected to represent.”

"The citizens of Michigan demand and deserve utmost trust and integrity in our campaign finance system," said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. "The former Mayor's actions severely undermined the confidence of those who bestowed trust and faith in him and his office. The FBI and law enforcement partners are fully dedicated to fighting public corruption by investigating and exposing corrupt officials whose greed erodes the public's trust in the government. We will not tolerate misconduct and will do everything we can to ensure justice is served."

The investigation of this case was conducted by the Federal Bureau of Investigation’s Detroit Area Corruption Task Force. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.

DETROIT –The United States Attorney’s Office for the Eastern District of Michigan resolved its investigation of the City of Trenton’s Kennedy Aquatic Center. The U.S. Attorney’s Office received a complaint alleging that the Kennedy Aquatic Center staff did not allow an individual who has a disability to use a water slide. The complainant is a capable swimmer; however, she has a disability that affects her stature. The U.S. Attorney’s Office investigated the complaint and successfully reached a settlement with the City of Trenton.

In the settlement agreement, the City of Trenton agreed to fully comply with the non-discrimination requirements of Title II of the American with Disabilities Act of 1990 (ADA). The ADA protects the rights of all individuals, regardless of disability, to fully and equally enjoy the benefits of the services, programs, or activities offered by public entities, which includes recreational centers and programs operated by state and local governments.

The settlement agreement requires the Kennedy Aquatic Center to adopt ADA policies to ensure that accommodations and modifications are made to allow people who have disabilities access to the recreational services offered at the Aquatic Center. For example, the settlement agreement requires the Aquatic Center to allow individuals who cannot meet the slide’s height requirement because of a disability to use the slide so long as they can demonstrate appropriate water safety skills.

“My office will vigorously protect the rights of individuals who have disabilities, especially children, to fully participate in our communities. Here, a child who simply wanted to enjoy all aspects of the local pool with friends and family was denied that opportunity because of a disability,” U.S. Attorney Ison said. “I applaud the City of Trenton for its willingness to protect those opportunities in the future.”

The investigation was led by AUSA Michael El-Zein of the U.S. Attorney’s Office for the Eastern District of Michigan, a member of the Civil Rights Unit. The full and fair enforcement of the ADA is a priority of the U.S. Attorney’s Office for the Eastern District of Michigan. The Civil Rights Unit of the U.S. Attorney’s Office for the Eastern District of Michigan was established in 2010 with the mission of prioritizing federal civil rights enforcement. For more information on the Office’s civil rights efforts, including a copy of the agreement, please visit https://www.justice.gov/usao-edmi/programs/civil-rights.

Individuals who believe they have been subjected to discrimination or experienced a civil rights violation can submit a complaint with the U.S. Attorney’s Office by email at usamie.civilrights@usdoj.gov or by phone at (313) 226-9151. Complaints can also be submitted to the Civil Rights Division through its complaint portal.

DETROIT – Victor Hernandez pleaded guilty to conspiring to distribute millions of illicit and counterfeit pills, United States Attorney Dawn N. Ison announced.  

Ison was joined in the announcement by acting Special Agent in Charge Shawn Gibson, Homeland Security Investigations (HSI) Detroit field office and the Drug Enforcement Administration (DEA) Special Agent in Charge Orville O. Greene.

Victor Hernandez, 30, of Detroit, admitted his involvement in a conspiracy to distribute illicit substances, a conspiracy to launder monetary instruments, his distribution of counterfeit pills, and the use of firearms in furtherance of the crime. 

During the course of the months-long investigation, agents were able to identify that a dark web vendor site was being operated out of the Detroit, Michigan, area.  The dark web marketplace vendor went by the moniker of “opiateconnect.”  Agents worked to determine the location being used as the distribution hub for illicit scheduled drugs to include cocaine, and various counterfeit drugs.  The counterfeit drugs, made to looks like alprazolam, commonly referred to as Xanax, were in fact uncontrolled research chemicals not scheduled for human consumption.    

Agents also learned that “opiateconnect” was being operated from a residence in Detroit, Michigan.  A subsequent search warrant revealed a clandestine drug lab. The search resulted in the seizure of approximately 1,000,000 dollars in cryptocurrency, in excess of 300,000 U.S. Dollars, multiple firearms, an industrial size pill press, industrial mixer, controlled substances including cocaine, and counterfeit drugs.

Hernandez pleaded guilty pursuant to a plea agreement to four counts: (1) conspiracy to possess with intent to distribute a controlled substance, which carries a statutory mandatory minimum sentence of 5 years and a maximum of 40 years; (2) conspiracy to launder monetary instruments, which carries a maximum sentence of 20 years; (3) dispensing a counterfeit drug, which carries a maximum sentence of 10 years; and (4) possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive sentence of five years.  In total, Hernandez is facing a mandatory minimum sentence of 10 years.

United States Attorney Dawn Ison said, “This guilty plea is the culmination of months of collaboration between state and federal law enforcement agencies. Counterfeit pills pose a unique danger to this community, especially ones that have the appearance of a drug that is so regularly prescribed.  We will continue to investigate and prosecute instances where those counterfeit pills are being manufactured illegally in our district to keep our community safe.”

“This plea is not just a win for law enforcement, but a win for our Detroit community,” said HSI Detroit acting Special Agent in Charge Shawn Gibson. “Whether on the dark web or on a street corner, drug traffickers seek to poison our communities. We will remain steadfast in our law enforcement partnerships to dismantle these networks wherever we find them.”

“The DEA, in collaboration with HSI, continues our commitment to safeguard communities from individuals who sell fake pills and other illicit substances,” said DEA Detroit Special Agent in Charge Orville O. Greene.  “This case proves that there is no place to hide in the dark web when it comes to law enforcement’s efforts to protect the people we serve.”   

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The investigation was conducted by the Detroit Dark Web Task Force, which consists of HSI, Postal Inspection Service Office of the Inspector General (USPIS-OIG), Secret Service (USSS), IRS-CID, Michigan State Police (MSP), and CBP.  The purpose of the task force is to investigate criminal organizations, to include drug vendors, that operate within dark web marketplaces.  The task force has disrupted and dismantled numerous drug trafficking organizations through criminal arrests, and the seizure of the proceeds from criminal activity.  The case is being prosecuted by Assistant U.S. Attorney Robert Jerome White.  

FLINT — Antonio Lynn Fluker, Jr., 36, of Flint, Michigan was sentenced to more than 11 years in federal prison following his conviction for wire fraud and money laundering in connection with a multi-million-dollar pandemic loan fraud scheme, United States Attorney Dawn N. Ison announced.  Fluker was also ordered to pay $3.8 million in restitution.

Ison was joined in the announcement by Douglas Zloto, Special Agent in Charge of the United States Secret Service, Detroit Field Office.

U.S. District Court Judge F. Kay Behm imposed sentence on Fluker following his guilty plea to wire fraud and money laundering. According to court documents, Fluker defrauded the U.S. Small Business Administration’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. These programs were intended to provide critical financial assistance to small businesses suffering economic harm because of the Covid-19 pandemic. As part of his scheme, Fluker prepared and submitted false applications in the names of multiple individuals and companies to obtain approximately 23 loans and loan advances, resulting in more than $3.6 million in fraud. Fluker then used this money for his own personal expenses, including sending $75,000 in loan proceeds to a luxury car dealer to obtain a Lamborghini.

As part of his plea agreement, Fluker also admitted to obtaining more than half a million dollars through bank fraud and another approximately $170,000 from credit cards obtained through identity theft.

Fluker was on federal supervised release for prior fraud-related and escape from custody convictions at the time of the offense. U.S. District Court Judge Behm also sentenced Fluker to 24 months in prison for his supervised release violations, to be served concurrently to his 135-month sentence.

“Those who defraud federal programs like the PPP and EIDL programs cause real harm to communities by taking away critical emergency relief funds from the hard-working small business owners and employees who need them,” said U.S. Attorney Ison. “My office will continue to prioritize the prosecution of fraud schemes relating to the pandemic.”

“Antonio Fluker was able to defraud the EIDL and PPP loan programs designed to assist the American people during the COVID-19 pandemic. The monies Fluker stole were intended to help honest businesses and hard-working individuals living in Flint, MI. Postal Inspectors from the USPIS and agents from OIG-SBA and USSS, with the assistance of the US Attorney’s Office, were able to investigate, arrest, and convict Antonio Fluker as well as seize funds he illegally obtained through his fraud scheme. We are glad to see that justice prevailed in this case and continue to investigate individuals who took advantage of the global pandemic to enrich themselves with COVID Relief Disaster Funds,” said Special Agent Zloto.

This investigation was conducted by special agents of the U.S. Secret Service Saginaw Resident Office. The case was prosecuted by Assistant United States Attorneys Ann Nee, Blaine Longsworth, and Jules DePorre.

DETROIT – A Dearborn resident was sentenced to 17 years in federal prison for sexually exploiting a child, United States Attorney Dawn N. Ison announced.

Ison was joined in the announcement by Cheyvoryea Gibson, FBI Special Agent in Charge, Detroit Field Division.

Haitham Sami Bazzi, 28, was sentenced by United States District Judge Terrence Berg. 

According to court documents, Bazzi met the 16-year-old victim in an online dating application in the summer of 2021. Bazzi engaged in sex acts with the victim, provided the child methamphetamine, and recorded the sexual exploitation. A concerned adult reported Bazzi to the Dearborn Police after Bazzi showed him child sexually abusive material on Bazzi’s phone. The Dearborn Police executed a search warrant and recovered multiple devices from Bazzi’s residence, which police then turned over to the FBI for further investigation.  The FBI analyzed the devices and found numerous images and videos of child sexually abusive material, including a video of the minor victim.

“Protecting our most vulnerable residents is one of my office’s top priorities – we must do everything in our power to protect our children from those who seek to cause them enduring harm. By seeking just punishment, we acknowledge this victim’s trauma and hope that this sentence helps the child’s journey toward a full recovery,”  U.S. Attorney Ison said.

"Our top priority is to protect our communities' youngest members from individuals who mean to take advantage of them. This sentencing and path to accountability would not be possible without the men and women of the Dearborn Police Department and the United States Attorney's Office,” said Cheyvoryea Gibson, Special Agent in Charge of FBI Michigan. “I would also like to thank the concerned citizen who dared to stand up to Mr. Bazzi and speak for our victim by reporting his heinous crimes to law enforcement. As a member of the law enforcement community, we can achieve tremendous success in partnership with our concerned citizens. If you know of someone victimizing our youth, please call the FBI at 1-800-CALL-FBI, or you may submit an online tip at TIPS.FBI.GOV."

This case was investigated by the FBI and the Dearborn Police Department. This case was prosecuted by Assistant U.S. Attorneys Christopher Rawsthorne and Tara Hindelang.

DETROIT – A Harrison Township resident was sentenced to 24 months in federal prison for abusive sexual contact with a child, United States Attorney Dawn N. Ison announced.

Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan.

Rex Phelps, 72, of Harrison Township, pleaded guilty on October 26, 2023 to Abusive Sexual Contact of a Child before United States District Judge Stephen J. Murphy, III, who also sentenced Phelps to 24 months in prison, the maximum sentence permitted by law.

While providing flying lessons to a 15-year-old girl, Phelps groomed and inappropriately touched the victim on several occasions. Phelps also exchanged text messages, including one with a picture of a man and a woman lying on a bed kissing. Phelps commented on the picture, “Shortly after the shower … without that top.  Maybe more.” Phelps’s abuse of the minor was only uncovered after he mistakenly sent this text message exchange to an unintended recipient, and that recipient contacted police.

“This sentence reaffirms our office’s commitment to protecting the most innocent and vulnerable members of our community – children,” U.S. Attorney Ison said. “This defendant violated the trust that so many had placed in him, including the victim’s parents.”

“Teachers and instructors are supposed to protect our youth while they progress in their learning environments, and it is utterly shameful that this individual took advantage of this young girl,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI and its partners remain committed to holding these criminals accountable for exploiting the innocent.”

This case was investigated by special agents of the Federal Bureau of Investigation. This case was prosecuted by Assistant U.S. Attorney Tara Hindelang.

DETROIT – Matthew Mercer-Kinser, 37, was sentenced today to 15 years and 8 months in federal prison for his second federal child pornography offense since 2009, United States Attorney Dawn N. Ison announced today.

Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, joined Ison in the announcement.

United States District Judge Terrence G. Berg sentenced Mercer-Kinser after a jury convicted him of receiving child pornography. According to the evidence presented at trial, in June 2009, United States District Judge Robert H. Cleland sentenced Mercer-Kinser to serve 12½ years in federal custody for transporting child pornography. In July 2019, the Bureau of Prisons designated Mercer-Kinser to serve the final months of that sentence in a Detroit residential reentry center (RRC). While at the RRC, Mercer-Kinser sent numerous sexually explicit text messages to a minor relative. A concerned adult learned of these communications and reported Mercer-Kinser to the FBI. Execution of a search warrant for Mercer-Kinser’s smartphone revealed several images of child pornography and numerous disturbing communications demonstrating Mercer-Kinser’s continued, prolific sexual interest in children. When Mercer-Kinser testified in his own defense during trial, he admitted his sexual fetish for children.

“Our office will use every tool at our disposal to combat the sexual exploitation of children, to bring perpetrators to justice, and vindicate the rights of victims, “ said U.S. Attorney Ison.

“Preying on the innocence of children is disturbing and equally traumatizing,” said Cheyvoryea Gibson, Special Agent in charge of the FBI in Michigan. “A turning point, in this case, was a concerned and brave citizen reporting this exploitation to law enforcement. We, as a society, must stand up for the vulnerable and hold those who prey on innocent children accountable for their reprehensible actions. Our office will use every resource available to bring individuals who repeatedly prey on and victimize innocent children to justice.”

The case was investigated by special agents of the FBI and prosecuted by Assistant United States Attorneys Erin Shaw and Maggie Smith.

DETROIT –The United States Attorney’s Office made significant strides in 2023 in rebuilding community trust, reinvigorating our protection of civil rights, and restructuring our approach to violent crime, United States Attorney Dawn N. Ison announced today. The details of the office’s work in 2023 are set forth in a 51-page annual report highlighting prosecutions, community outreach, trials, convictions, systemic change, and community impact. The document is available here for review by the public.

The report sets forth the work done in service of the richly-diverse Eastern District of Michigan. The lawyers and support professionals in our Detroit, Flint, and Bay City offices, along with our partner agencies, had significant accomplishments this year.

Among them:

• In fiscal year 2023, our office collected $68,224,759.35 in criminal and civil actions in judgments, fines, restitution, and forfeiture, more than twice our operating budget of $ 24.9 million. These funds are being returned to victims and taxpayers.

• Our efforts to target the most violent offenders who are harming public safety resulted in numerous federal convictions. We obtained conviction for the leader of the Seven Mile Bloods Gang who terrorized Detroit’s east side for many years. We also obtained Racketeer Influenced and Corrupt Organizations (“RICO”) convictions for three senior members of the Almighty Vice Lords Nation, a criminal enterprise that operates across the country including in Detroit.

• We filed suit against a Dearborn Heights landlord who is alleged to have subjected actual and prospective female tenants to sexual harassment on multiple occasions since at least 2017.

• We charged a former Warren police officer with violating a jail prisoner’s civil rights by assaulting the prisoner without justification.

 

• We remained committed to rooting out public corruption in our community as 2023 saw the Mayor of Inkster indicted by our office for bribery and guilty pleas from the Mayor of Taylor for conspiracy to receive bribes and wire fraud and the President of the Madison School Board for bribery and tax evasion.

• We obtained a conviction at trial against an ISIS fighter who left his home in Michigan and travelled to Yemen and Syria where he obtained ISIS training and spent more than 2 years as an ISIS soldier.

• The office has charged 142 defendants (52 in 2023) with participating in pandemic fraud schemes, ranging from unemployment insurance fraud conspiracies to fraud in pandemic loan programs. Of the individuals charged in such cases, the United States has thus far obtained more than 86 convictions.

• We indicted 8 people and charged them with federal civil rights offenses and violations of the Freedom of Access to Clinic Entrances (FACE) Act for using physical obstruction to intimidate and interfere with employees and patients of a reproductive health clinic, because the clinic’s employees were providing, and the patients were seeking, reproductive health services.

Although we are encouraged by the results of our efforts in 2023, we recognize that we still have more work to do. The work detailed in the 2023 Annual Report details our ongoing efforts to keep our community safe, protect civil rights, and ensure fairness and opportunity for everyone in our community. Each day, the 220 men and women of the U.S. Attorney’s Office will continue to work diligently to further these goals and to advance the interests of our nation.

DETROIT - A Southgate resident was sentenced to 15 years for sexually exploiting a child, coercion and enticement of a minor, and receipt of child pornography, announced United States Attorney Dawn N. Ison.

Ison was joined in the announcement by acting Special Agent in Charge Shawn Gibson, Homeland Security Investigations (HSI) Detroit field office.

Nopphadon Ninsawat, 32, was convicted on November 28, 2023, following a 4-day jury trial before United States District Judge David M. Lawson.

Ninsawat met the 15-year-old victim on Snapchat. After they communicated for some time, the victim’s mother discovered the communications, contacted the defendant, and told him that her daughter was 15-years old. The defendant agreed not to have further contact with her. Instead, the defendant resumed requesting that the child produce sexually explicit images, even though she indicated that she no longer wanted to do so. The defendant persisted, and the victim eventually produced numerous images of herself engaged in sexually explicit conduct.

“This sentence will hopefully bring some closure to the victim of this defendant’s offenses and serve as warning to those who would seek to exploit the children of this District.” stated United States Attorney.

“The communities we serve can sleep easier knowing that predators like Ninsawat are off our streets,” said HSI Detroit acting Special Agent in Charge Shawn Gibson. "HSI along with our partners will continue to aggressively investigate and root out child exploitation wherever it may be.”

The crime was originally investigated by the Gibraltar Police Department, who then enlisted the assistance of the Department of Homeland Security. The case was prosecuted by Assistant United States Attorneys Tara Hindelang and Christopher Rawsthorne.

DETROIT –A New Baltimore resident was sentenced yesterday to 8 years and 4 months in federal prison following her convictions fo 26 drug-related crimes, including unlawful distribution of controlled substances and conspiracy to unlawfully distribute prescription drug-controlled substances, announced United States Attorney Dawn N. Ison.

Joining Ison in the announcement were Orville Greene, Special Agent in Charge of the Detroit Field Office of the Drug Enforcement Administration, and Mario M. Pinto, Special Agent-In-Charge, United States Department of Health and Human Services – Office of Inspector General.

Hasna Bashir Iwas, 62, the owner and operator of Beacon Pointe Pharmacy in Grosse Pointe Park, Michigan was sentenced by United States District Judge Laurie J. Michelson following a jury trial.

The convictions resulted from defendant’s operation of Beacon Pointe Pharmacy in Grosse Pointe Park during 2013-2018. The defendant regularly filled many prescriptions issued by a local doctor, Otis Crawford. Dr. Crawford was charged with unlawfully writing controlled substance prescriptions and pleaded guilty, but died before his sentencing.  Pharmacist Iwas was held criminally responsible for distributing over 300,000 dosage units of controlled substances.  The drugs had an estimated street value of $1.8 to $3.3 million. She personally received gross income of $781,546 from the illegal distribution of pills from her pharmacy.  As part of her sentence, she was ordered to forfeit $781,546, which represents the proceeds of her drug dealing. 

“My office will continue to devote resources to prosecuting healthcare professionals such as this defendant, who use their trusted roles as healthcare providers to deal drugs in our community,” said U.S. Attorney Ison.

The investigation was conducted by the Drug Enforcement Administration, the Department of Health and Human Services – Office of Inspector General, with assistance from the Detroit Police Department.

The case was prosecuted by Assistant United States Attorney Wayne F. Pratt, while forfeiture litigation was handled by Assistant United States Attorney Gjon Juncaj.

DETROIT – A Detroit resident was sentenced to 28 years and 1 day in federal prison following his convictions for the armed robberies and attempted armed robbery of five Walgreens in Wayne, Oakland, and Macomb Counties in 2018 and 2019, United States Attorney Dawn N. Ison announced today.

Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan.

Mario Keeream Jackson, age 35, of Detroit, was convicted by a jury in May 2023 of four counts of Hobbs Act Robbery, one count of Attempt-Hobbs Act Robbery, one count of Robbery of a DEA Licensed Premises, and five firearms counts. Jackson, who at the time of the robberies was on parole with the Michigan Department of Corrections for a prior firearm conviction, used a semi-automatic handgun with an extended magazine to rob Walgreens located in Oak Park, Dearborn Heights, Royal Oak, and Warren. During the robberies, Jackson stole over $18,000 in cash and over 5000 prescription opioid pills. Jackson attempted to rob a fifth Walgreens in Southfield, but the employees were able to escape the store before Jackson could access the store safe. During all the robberies, Jackson gained access to the back area of the stores by crawling through the coolers located in the stores. In total, Jackson held nine Walgreens employees at gunpoint during the robberies. Jackson was arrested on May 2, 2019, when law enforcement executed a search warrant at Jackson’s girlfriend’s residence in Detroit where Jackson was living. During the search, agents recovered the firearm Jackson used to commit the robberies.

“This defendant wreaked havoc in our community for more than five months, committing a string of armed robberies against innocent victims. Keeping our communities safe from this type of violence is at the core of DOJ’s mission,” said U.S. Attorney Ison.

"I would like to thank the members of our Oakland County Gang and Violent Crime Task Force for their hard work and our partners for their collaborative efforts in this case,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “This sentence serves as a warning to violent criminals and demonstrates the FBI’s and its law enforcement partners’ dedication to ensuring safer communities.”

This prosecution is a part of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Justice Department’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through the PSN program a broad spectrum of law enforcement and community stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs to reduce violence crime and gun violence, and to make our local neighborhoods safer for everyone.

The case was investigated by special agents and task force officers of the Federal Bureau of Investigation’s Oakland County Gang and Violent Crime Task Force. Assisting in the investigation were special agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and officers from the Oak Park, Dearborn Heights, Southfield, Royal Oak, and Warren Police Departments.

DETROIT –The United States Attorney’s Office made significant strides in 2023 in rebuilding community trust, reinvigorating our protection of civil rights, and restructuring our approach to violent crime, United States Attorney Dawn N. Ison announced today. The details of the office’s work in 2023 are set forth in a 51-page annual report highlighting prosecutions, community outreach, trials, convictions, systemic change, and community impact. The document is available here for review by the public.

The report sets forth the work done in service of the richly-diverse Eastern District of Michigan. The lawyers and support professionals in our Detroit, Flint, and Bay City offices, along with our partner agencies, had significant accomplishments this year. Among them:

• In fiscal year 2023, our office collected $68,224,759.35 in criminal and civil actions in judgments, fines, restitution, and forfeiture, more than twice our operating budget of $ 24.9 million. These funds are being returned to victims and taxpayers.

• Our efforts to target the most violent offenders who are harming public safety resulted in numerous federal convictions. We obtained conviction for the leader of the Seven Mile Bloods Gang who terrorized Detroit’s east side for many years. We also obtained Racketeer Influenced and Corrupt Organizations (“RICO”) convictions for three senior members of the Almighty Vice Lords Nation, a criminal enterprise that operates across the country including in Detroit.

• We filed suit against a Dearborn Heights landlord who is alleged to have subjected actual and prospective female tenants to sexual harassment on multiple occasions since at least 2017.

• We charged a former Warren police officer with violating a jail prisoner’s civil rights by assaulting the prisoner without justification.

• We remained committed to rooting out public corruption in our community as 2023 saw the Mayor of Inkster indicted by our office for bribery and guilty pleas from the Mayor of Taylor for conspiracy to receive bribes and wire fraud and the President of the Madison School Board for bribery and tax evasion.

• We obtained a conviction at trial against an ISIS fighter who left his home in Michigan and travelled to Yemen and Syria where he obtained ISIS training and spent more than 2 years as an ISIS soldier.

• The office has charged 142 defendants (52 in 2023) with participating in pandemic fraud schemes, ranging from unemployment insurance fraud conspiracies to fraud in pandemic loan programs. Of the individuals charged in such cases, the United States has thus far obtained more than 86 convictions.

• We indicted 8 people and charged them with federal civil rights offenses and violations of the Freedom of Access to Clinic Entrances (FACE) Act for using physical obstruction to intimidate and interfere with employees and patients of a reproductive health clinic, because the clinic’s employees were providing, and the patients were seeking, reproductive health services.

Although we are encouraged by the results of our efforts in 2023, we recognize that we still have more work to do. The work detailed in the 2023 Annual Report details our ongoing efforts to keep our community safe, protect civil rights, and ensure fairness and opportunity for everyone in our community. Each day, the 220 men and women of the U.S. Attorney’s Office will continue to work diligently to further these goals and to advance the interests of our nation.

DETROIT – David Bluer, 33, of Warren, Michigan, was charged today in connection with spray-painting swastikas and other graffiti on a church in Roseville, Michigan, and with spray-painting similarly racist graffiti on a public park bathroom in Warren.

According to the charging documents, in October 2021, Bluer spray-painted swastikas, the word “die” and other graffiti on the Roseville church, because of the race and color of individuals associated with the church. As specified in the charging documents, the Roseville church has a Black pastor and serves a predominantly Black congregation. In addition, Bluer spray-painted swastikas, a racist slur and symbols and other graffiti on the public bathroom of Trombly Park, in Warren. The racist graffiti included the statement “DaviD KiLLS Ni**ERS.” Allegedly, Bluer acted because of the race and color of Black people who used the park, and because Black people were and had been enjoying the park. 

Bluer was charged with one count of damaging a religious property and one count of interfering with federally protected activities. Bluer faces a maximum penalty of one year in prison for each misdemeanor charge.

United States Attorney for the Eastern District of Michigan Dawn N. Ison, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, and Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office made the announcement.

The FBI Detroit Field Office investigated the case.

Assistant U.S. Attorney Frances Carlson for the Eastern District of Michigan and Trial Attorney Erin Monju of the Justice Department’s Civil Rights Division are prosecuting the case.

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

FLINT — Petar Vuk Pejic, 23, of Hollywood, Florida was sentenced yesterday to 30 years in federal prison on charges of sexual exploitation of a minor and distribution of child pornography, U.S. Attorney Dawn N. Ison announced. 

Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan, Jeffrey B. Veltri, Special Agent in Charge of the FBI’s Miami, Florida office, Sheriff Christopher R. Swanson, Genesee County Sheriff and David Leyton, Genesee County Prosecutor.

U.S. District Court Judge F. Kay Behm imposed sentence on Pejic following his guilty plea to sexually exploiting a Michigan minor and distributing child pornography that he produced of the minor. According to court documents, after Pejic met the Michigan minor online, he requested that the minor send him sexually explicit videos, and the minor complied. In February 2022, Pejic travelled from Florida to Michigan to have sex with the minor, whom Pejic knew was 12 years old at the time. Pejic then took the minor to a hotel and engaged in sexual acts with the minor, which he recorded. He subsequently distributed videos of the minor engaged in sexual conduct using the internet.

As part of his plea agreement, Pejic also admitted to using the internet to entice two other minors to engage in sexual activity. In March 2022, he travelled from Florida to the states of Oregon and Washington to engage in sexual activity with those minors, who were 14 and 15 years old at the time. Pejic also admitted to possessing, receiving, and distributing other child pornography.

Law enforcement first learned of Pejic’s activities in Michigan when the suspected sexual abuse of the Michigan minor was reported to the Genesee County Sheriff’s Office. The Sheriff’s Office, local law enforcement officers in Florida, and the FBI then worked together to arrest Pejic and investigate his sexual exploitation of children, with the additional assistance of local law enforcement officers in Oregon and Washington.

“This investigation highlights the importance of child sexual abuse reporting requirements. It was because of the initial abuse report in this case that law enforcement officers were able to identify and stop Pejic from continuing to sexually exploit children online and in person,” said United States Attorney Ison. “The strong cooperation between federal and local law enforcement partners across the country then helped bring Pejic to justice.

“The safety and security of our children remains one of the FBI’s top investigative priorities,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “With the help of our partners, we remain committed to identifying, investigating, and prosecuting those who victimize our most vulnerable. I would like to especially thank the FBI Miami Field Office and the Genesee County Sheriff’s Office for their assistance with this case.”

“The FBI will do everything in our power to protect children and punish those who prey upon society’s most vulnerable people and inflict irreparable damage upon those innocent lives,” said Jeffrey B. Veltri, Special Agent in Charge, FBI Miami Field Office. “I commend the close cooperation and professionalism we encountered with the Genesee County Sheriff’s Office, FBI Detroit, the U.S. Attorney’s Office for the Eastern District of Michigan, and the numerous other law enforcement agencies in Florida, Oregon, and Washington whose cooperation and commitment were essential for this case.”

Prosecutor Leyton stated, “This case highlights the very real and very dark side of child sexual exploitation but, at the same time, it highlights the very real and very positive side of law enforcement working together at every level from the local Sheriff and Prosecutor to federal agents and U.S. Attorneys across multiple state lines. I am proud of the work we have done together to stop this child predator in his tracks and to see justice through in a court of law.”

This investigation was conducted by the Genesee County Sheriff’s office and special agents of the FBI’s Flint Resident Office and Miami, Florida, with additional assistance from local law enforcement officers in Florida, Oregon, and Washington.  The case was prosecuted by Assistant United States Attorneys Ann Nee, Katharine Hemann and Anthony Vance.

DETROIT – A West Palm Beach man was indicted by a grand jury for repeatedly threatening the Council on American-Islamic Relations (“CAIR”) Michigan Chapter, United States Attorney Dawn N. Ison announced today.

Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Division of the Federal Bureau of Investigation, and Chad Baugh, Chief of the Canton Police Department.

As alleged in the indictment, Michael Shapiro, 72,  of West Palm Beach, Florida, placed three separate phone calls to CAIR’s office located in Canton, Michigan, and left voicemails containing the following threats:

• December 8, 2023: “I’m going to kill you bastards. I’m going to kill you bastards.”
• December 14, 2023: ““I’m going to kill you m****r f*****g bastards. Muslims! I’m going to kill you m****r f*****s. I’m going to kill you! I’m going to kill you! I’m going to kill you!”
• December 15, 2023: “You’re a violent people. Why do you come to America? Why do you come to Europe? M***** f******. You’re violent. You’re killers. You’re rapists. I’m going to kill you m****r f*****s!”

Michael Shapiro, 72, was charged with three counts of transmitting threats in interstate commerce. The indictment also alleges that Shapiro intentionally selected the victim of his threats because of the actual and perceived religion and national origin of the people who work at and are assisted by CAIR.

“Today’s charges should serve as a warning that those who threaten violence, especially when they intend to instill fear on an entire community, will be identified, investigated, and aggressively prosecuted,” U.S. Attorney Ison said.

“Threats motivated by religious bias can have a devastating impact on an entire faith community. For this reason, hate crimes are one of the FBI’s highest investigative priorities,” said Cheyvoryea Gibson, the Special Agent in Charge of the FBI in Michigan. “We remain committed to working with our partners at the Canton Police Department and across the state to detect and prevent violent incidents motivated by bias or hate. We also urge the public to report any suspected hate crimes to your local police or the FBI at 1-800-225-5324. You may also submit an online tip at tips.fbi.gov.”

"The Canton Police Department extends sincere thanks to the FBI and U.S. Attorney's Office for their partnership in addressing threats by Michael Shapiro against the CAIR Michigan Chapter,” said Chief Baugh.  “Such collaborative efforts reinforce our commitment to combating hate crimes and ensuring community safety. We are resolute in our mission to uphold the safety and rights of every individual."

An indictment is only a formal charging document and is not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted, Shapiro faces up to 5 years in prison for each of the 3 counts. If convicted, a federal court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

This case was investigated by the Federal Bureau of Investigation and the Canton Police Department. The case is being prosecuted by Assistant U.S. Attorney Frances Lee Carlson.

DETROIT – Zina Thomas, 60, of Detroit was charged in a criminal complaint filed in United States District Court for her role orchestrating a fraud scheme that stole houses from dozens of Detroit residents, announced United States Attorney Dawn N. Ison.

Ison was joined in the announcement by Special Agent-in-Charge Cheyvoryea Gibson, Federal Bureau of Investigation; Special Agent-in-Charge Machelle L. Jindra, Department of Housing and Urban Development Office of Inspector General; Detroit Police Chief James E. White; and Wayne County Register of Deeds Bernard J. Youngblood.   

The complaint charges Thomas with conspiracy to commit wire fraud, wire fraud, money laundering, and aggravated identity theft. Thomas was arrested today.

According to the complaint, Thomas, while serving as the Director of Homeownership Programs for the United Community Housing Coalition (UCHC), conspired with other individuals to steal over 30 properties across Wayne County, predominately located in the City of Detroit.  The complaint alleges that Thomas and others perpetrated a scheme to defraud by filing multiple fraudulent quitclaim deeds, frequently transferring the target properties from the victim-owners to non-existent “interim owners” before ultimately selling the properties to unwitting third parties.  It is also alleged that these fraudulent deeds were falsely notarized by Thomas or another person, which made them appear legitimate and thus enabled them to be filed with the Register of Deeds. The complaint also alleges that Thomas emailed a Wayne County Treasurer’s Office employee fake driver’s licenses and other documents, which were then uploaded into the Treasurer’s Property Tax Administration system to halt pending foreclosures.  According to the complaint, Thomas received payment for at least some of the properties via wire transfer into a bank account in the name of her realty company, and Thomas then transferred proceeds from that account to her personal bank account. And the scheme targeted low-income individuals who were facing potential tax foreclosure. According to the complaint, Thomas currently resides in one of the properties involved in the scheme.

The United Community Housing Coalition (UCHC), is a 501(c)(3) nonprofit organization providing housing assistance to Detroit’s low-income residents.  The UCHC and its executive leadership cooperated with the investigation.

United States Attorney Ison stated, “This scheme targeted some of our most financially vulnerable citizens and was perpetrated by an individual whose job it was to help those very people avoid losing their homes to foreclosure. This arrest is the result of a multi-agency, cooperative investigation involving both federal and state law enforcement, and is reflective of our ongoing efforts to identify and disrupt fraud schemes like this as quickly as possible.” 

“While working in a capacity to provide assistance to residents experiencing financial hardships, Ms. Thomas allegedly exploited individuals in the process of losing their homes,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "The FBI and its law enforcement partners will continue to investigate these reprehensible acts of fraud.”

“Thomas allegedly abused her position to help fraudulently sell properties facing tax foreclosure for her own personal gain,” said Special Agent-in-Charge Machelle Jindra with the U.S. Department of Housing and Urban Development Office of Inspector General.  “HUD OIG will continue to work with its law enforcement partners to bring bad actors to justice and protect the integrity of HUD housing programs.” 

“I want to thank U.S. Attorney Dawn N. Ison for her continued collaboration to ensure that those who victimize Detroit residents face the fullest consequences of the law,” said Detroit Police Chief James E. White. “The DPD remains committed to addressing all aspects of crime and working with our partners across law enforcement to keep Detroiters safe.”

“A rash of incoming complaints to my Deed Fraud Task Force, followed with methodical investigative teamwork, culminated in today’s announcement,” said Wayne County Register of Deeds Bernard J. Youngblood.  “Wayne County is the national leader in combating this new crimewave and we are proud to partner with local, state and federal law enforcement to protect the property rights of our citizens.”

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

This case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development Office of the Inspector General, and the Detroit Police Department.  Significant investigative assistance was provided by the Wayne County Register of Deeds’ Mortgage & Deed Fraud Unit.  The case is being prosecuted by Assistant United States Attorney Ryan A. Particka.

WASHINGTON – An Indiana man pleaded guilty today to sending a communication that included a threat of violence to an election worker in Michigan. 

“Andrew Nickels threatened that he and millions of so-called ‘patriots’ would kill an election worker in Michigan. Among other threats, he said the local public official deserved a ‘throat to the knife’ for saying that there were no irregularities in the election,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Election officials and workers play a critical role in safeguarding free and fair elections. The Criminal Division will continue to aggressively investigate and prosecute individuals who seek to undermine this core tenet of our democracy by threatening election officials with violence.”

According to court documents, on or about Nov. 10, 2020, Andrew Nickels, 37, of Carmel, called the clerk of a local municipality and left a voicemail threatening to kill the local official. As part of the message, Nickels stated, in part, “We’re watching your…mouth talk about how you think that there’s no irregularities…[Y]ou frauded out America of a real election.”  Nickels then told the clerk that “you’re gonna pay for it,” and described how “ten million plus patriots will surround you when you least expect it.” He continued, in relevant part: “[W]e’ll [expletive] kill you…[Y]ou will [expletive] pay for your [expletive] lying ass remarks…We will [expletive] take you out. [Expletive] your family, [expletive] your life, and you deserve a [expletive] throat to the knife…Watch your [expletive] back…watch your [expletive] back.”

“No public official should face the violent threats that the victim in this case did, just for doing their job of ensuring the fairness and integrity our federal, state, and local elections,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Today’s guilty plea should send a clear message that those who engage in this egregious conduct will be held accountable.”

“Those who work to ensure the integrity of our democratic process should be able to continue without fear of intimidation or violence,” said Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office. “The FBI will not tolerate threats against any local, state, or federal elections workers and will continue working with our law enforcement partners to mitigate such threats.”

Nickels pleaded guilty to one count of making a threatening interstate communication. He is scheduled to be sentenced on July 9 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Detroit Field Office is investigating the case.

Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Frances Lee Carlson for the Eastern District of Michigan are prosecuting the case.

This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers – whether elected, appointed, or volunteer – are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. A year after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.

Under the leadership of Deputy Attorney General Monaco, the task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.

To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.

An Indiana man pleaded guilty today to sending a communication that included a threat of violence to an election worker in Michigan. 

“Andrew Nickels threatened that he and millions of so-called ‘patriots’ would kill an election worker in Michigan. Among other threats, he said the local public official deserved a ‘throat to the knife’ for saying that there were no irregularities in the election,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Election officials and workers play a critical role in safeguarding free and fair elections. The Criminal Division will continue to aggressively investigate and prosecute individuals who seek to undermine this core tenet of our democracy by threatening election officials with violence.”

According to court documents, on or about Nov. 10, 2020, Andrew Nickels, 37, of Carmel, called the clerk of a local municipality and left a voicemail threatening to kill the local official. As part of the message, Nickels stated, in part, “We’re watching your…mouth talk about how you think that there’s no irregularities…[Y]ou frauded out America of a real election.” Nickels then told the clerk that “you’re gonna pay for it,” and described how “ten million plus patriots will surround you when you least expect it.” He continued, in relevant part: “[W]e’ll [expletive] kill you…[Y]ou will [expletive] pay for your [expletive] lying ass remarks…We will [expletive] take you out. [Expletive] your family, [expletive] your life, and you deserve a [expletive] throat to the knife…Watch your [expletive] back…watch your [expletive] back.”

“No public official should face the violent threats that the victim in this case did, just for doing their job of ensuring the fairness and integrity our federal, state, and local elections,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Today’s guilty plea should send a clear message that those who engage in this egregious conduct will be held accountable.”

“Those who work to ensure the integrity of our democratic process should be able to continue without fear of intimidation or violence,” said Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office. “The FBI will not tolerate threats against any local, state, or federal elections workers and will continue working with our law enforcement partners to mitigate such threats.”

Nickels pleaded guilty to one count of making a threatening interstate communication. He is scheduled to be sentenced on July 9 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Detroit Field Office is investigating the case.

Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Frances Lee Carlson for the Eastern District of Michigan are prosecuting the case.

This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers – whether elected, appointed, or volunteer – are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Over two years after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.

Under the leadership of Deputy Attorney General Monaco, the task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.

To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.

DETROIT - A leader of an extensive real estate fraud scheme was sentenced to four years in federal prison today after having pleaded guilty to conspiring to commit mail and wire fraud, U.S Attorney Dawn N. Ison announced. This marks the 20th and final defendant to be convicted and sentenced in this case.

Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan.

According to court documents, Izhak Halbani, 39, admitted to leading a telemarketing fraud scheme based in Florida that lured victims into purchasing residential real estate in Detroit and elsewhere through a variety of lies. 

Halbani and his co-conspirators, using a number of aliases, told victims they were buying bank-owned properties at a fraction of the remaining mortgage balance.  These properties were then purportedly “flipped” to hedge funds and foreign investors—generating supposed returns for the victims and inducing them to invest more into the scheme.  The victims were also told that the telemarketers did not make any money on the victims’ initial purchase but only received a commission from the subsequent resale of the properties—supposedly aligning their incentives with those of the victims.

In reality, the properties the victims purchased were not bank-owned.  Instead, the properties were owned by other entities controlled by Halbani and his co-conspirators, who had routinely purchased the properties for a fraction of what the victims paid.  And the telemarketers did, in fact, make money from the victims’ initial purchase.  Furthermore, rather than being re-sold to third-party hedge funds or foreign investors, the properties bought by the victims were sold to shell entities that were also controlled by the co-conspirators—all part of an effort to portray a ready market for flipping homes.  As part of the scheme, the victims were also provided with fraudulent documentation showing the purported profits earned on the resale of their properties.  Believing that there was a ready market for flipping homes to third parties, many victims sent substantial additional sums to the co-conspirators. They were, however, eventually left owning properties with little actual value or resale potential.

Halbani admitted that the scheme victimized over 290 individuals, involved more than 2000 properties, and caused losses totaling at least $19 million.

“Not only did the perpetrators of this scheme financially devastate countless victims, but they also used homes in our community like Monopoly pieces in a game of fraud—callous to the real impact residential vacancies and blight have on our neighborhoods,” stated United States Attorney Dawn N. Ison.

The following defendants were previously convicted and sentenced for their roles in the fraud scheme:

•          Joseph Arsenault: 121 months’ imprisonment

•          Scott Amster: 102 months’ imprisonment

•          Erez Arsoni: 84 months’ imprisonment

•          Gregory Swarn: 82 months’ imprisonment

•          Antwan Reid: 63 months’ imprisonment

•          John Trumble: 60 months’ imprisonment

•          Richard Silverstein: 57 months’ imprisonment

•          Wayne Scott Simpson: 57 months’ imprisonment

•          Joseph Haden: 52 months’ imprisonment

•          Scott Lipman: 30 months’ imprisonment

•          Steven Goldstein: 27 months’ imprisonment

•          Joel Munoz: 27 months’ imprisonment

•          Theodore Jacobs: 24 months’ imprisonment

•          Matthew Golden: 15 months’ imprisonment

•          Richard Pierce: 12 months and 1 day of imprisonment

•          Edward Keeler: 1 day of imprisonment and 30 months’ supervised release

•          Amanda Balcer: 1 day of imprisonment and 24 months’ supervised release

•          Michelle Pintado: 1 day of imprisonment and 24 months’ supervised release

•          Robert Gallik: 1 day of imprisonment and 24 months’ supervised release

The case was investigated by the FBI.

The case was prosecuted by Assistant U.S. Attorney Andrew J. Yahkind, and Assistant U.S. Attorney Jessica A. Nathan is handling forfeiture matters.

DETROIT - Christopher Niebel, a former tax preparer who did business as “Tax Guy Chris,” pleaded guilty today to fraud and identity theft charges resulting from his participation in a pandemic unemployment insurance fraud scheme, announced United States Attorney Dawn N. Ison.

Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge Charles Miller of the Internal Revenue Service-Criminal Investigation Detroit Field Office and Michigan Unemployment Insurance Agency Director Julia Dale.

Niebel, 45, pleaded guilty to one count of wire fraud and one count of aggravated identity theft arising out of a scheme in which Niebel used stolen identities to submit fraudulent claims for unemployment insurance benefits during the Covid 19 pandemic.

According to the plea agreement, at the beginning of the pandemic, Niebel owned and operated a tax preparation service (“Tax Guy Chris”) in Allen Park, Michigan. Niebel also worked seasonally as a manager for Party City, a New-Jersey-based retail chain selling party supplies. Through his employment at Party City (a job he had held for many years), Niebel had access to the files of individuals who had worked or applied to work at the company. These files included the U.S. Citizenship and Immigration Service’s I-9 employment verification forms of Party City employees and applicants, in which the applicants documented their eligibility for employment in the United States. In approximately 2019, Niebel stole a number of these I-9 forms from Party City, which contained a substantial volume of personal identifying information (PII) of the applicants (including names, social security numbers, and dates of birth). Niebel filed these documents away for his future use.

Once Pandemic Unemployment Assistance (PUA) funds became available, Niebel used the PII he had appropriated from Party City in a scheme to defraud the Michigan Unemployment Insurance Agency by submitting fictitious claims for those benefits. Specifically, Niebel submitted electronic applications seeking pandemic unemployment benefits using the PII of applicants for jobs with Party City, without the authorization, approval, or knowledge of those individuals. Niebel intentionally used the PII of individuals who were not from Michigan in submitting these claims, correctly surmising that such individuals would be unlikely to have submitted their own unemployment insurance claims in Michigan and thus making detection less likely.  Niebel opened numerous bank accounts in Michigan in order to capture the PUA funds, which were wired to those accounts. After capturing the pandemic unemployment benefits from these fraudulent applications, Niebel spent the money on a variety of personal expenses, including food, lodging, lottery tickets,  and casino gambling,

Over the course of the scheme, Niebel obtained approximately $512,000 in pandemic unemployment assistance funds to which he was not entitled.

“Stealing money from pandemic benefit programs is a serious offense that harms both the intended beneficiaries and taxpayers. Doing so by stealing people’s identities  further compounds the harm to the public,” said U.S. Attorney Ison. “Today’s guilty plea is an important step towards ensuring accountability for Mr. Niebel’s crimes.”

"Christopher Niebel fraudulently obtained unemployment insurance benefits by submitting claims using the names of identity theft victims. Niebel directed that the stolen benefits be deposited into bank accounts under his control. We will continue to work with our law enforcement and state workforce agency partners to protect the integrity of unemployment insurance benefit programs," said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General.

“With today’s guilty plea, Christopher Niebel became another example of an individual who callously took advantage of pandemic benefit programs and was caught,” said Charles Miller, Special Agent in Charge of IRS-CI’s Detroit Field Office.  “In this case, Niebel sought to defraud the U.S. Government and steal funds from our local citizens, for whom these funds were intended to aid and provide much needed relief during the Covid-19 pandemic.  IRS-CI, along with our law enforcement partners, remains committed to combat and prevent this type of pandemic-related fraud.”

“It is astounding the selfish schemes fraudsters cook up using fake identities to steal money meant for hard-working Michiganders,” said Michigan Unemployment Insurance Agency Director Julia Dale. “At the start of the pandemic, so many people needed help and all Chris Niebel thought about was how he could game the system for his personal gain. His actions – and those of more than 160 others charged so far with unemployment fraud – erodes the public’s trust. We won’t let that get in the way of wide-ranging reforms to win back that trust and position the Michigan UIA as a national model for fast, fair, and fraud-free service.”

Sentencing is set for May 21, 2024, before United States District Judge Stephen J. Murphy III. Niebel faces a statutory maximum of 20 years imprisonment on the wire fraud count.  The aggravated identity theft charge carries a two-year mandatory sentence of imprisonment, which must run consecutively to any custodial time imposed on the wire fraud charge.

The case is being prosecuted by Assistant United States Attorney John K. Neal. The investigation is being conducted jointly by the Department of Labor-Office of Inspector General and the Internal Revenue Service-Criminal Investigation.

DETROIT – A fugitive wanted in connection with bank robberies in Hamtramck, Harper Woods, and Hazel Park appeared in federal court this afternoon. Glenn Pack, 23, was arrested by the FBI on January 25, 2024, in West Virginia, and was returned to Michigan earlier this week to face charges, United States Attorney Dawn N. Ison announced.

Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan.

According to the criminal complaint, Pack is alleged to have robbed a PNC Bank on Joseph Campau Street in Hamtramck on December 19, 2023, a Chase Bank on Vernier Road in Harper Woods on January 2, 2024, and a PNC Bank on S. Chrysler Drive in Hazel Park on January 12, 2024. In all three robberies, Pack posed as a customer and presented the tellers with a note demanding money and stating that he was robbing the bank. Pack is alleged to have made off with over $10,000.

If convicted, Pack faces a maximum penalty of 20 years in prison for bank robbery. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

“We are grateful for the swift action by the Hamtramck, Harper Woods, and Hazel Park Police Departments in coordinating with the FBI to identify and locate the defendant,” said Cheyvoryea Gibson, the Special Agent in Charge of the FBI in Michigan. “Each law enforcement partner brought a unique skill set which contributed to the successful apprehension by FBI Pittsburgh. The FBI remains committed to investigating thieves and protecting the public from this type of criminal activity.”

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

In addition to the Detroit FBI, this case is being investigated by the Hazel Park Police Department, the Hamtramck Police Department, and Harper Woods Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Sarah Alsaden.

DETROIT – Siemens Industry, Inc., a subsidiary of Siemens Corporation, has agreed to pay over $1 million to resolve possible False Claims Act violations, United States Attorney Dawn N. Ison announced today.

Ison was joined in the announcement by Inspector General Rae Oliver Davis with the U.S. Department of Housing and Urban Development.

Siemens Industry, Inc., on behalf of itself and predecessor entity Siemens Building Technologies, Inc. (Siemens), agreed to pay $1,086,430 to resolve allegations under the False Claims Act related to a contract it entered into in 2011 with the Hamtramck Housing Commission, a HUD-funded public housing authority in Hamtramck, Michigan.  Under the contract, Siemens would install energy efficiency improvement measures at two Hamtramck public housing facilities.  During the development of that energy performance contract, Siemens calculated the amount of energy savings the improvement would deliver.  The Hamtramck Housing Commission submitted records to HUD using data from Siemens’s analysis.  The settlement resolves allegations that Siemens relied on inaccurate data in its analysis, which led to the United States paying a larger annual subsidy to the Hamtramck Housing Commission than it otherwise would have.

“Federal contractors are expected to deal honestly with federal agencies, even where there are intermediaries between the agency and the contractor,” said U.S. Attorney Ison.  “This settlement demonstrates our Office’s commitment to protecting the taxpayers’ money in any matter where the government ultimately suffers from misconduct by contractors.” 

“The False Claims Act is an important tool for holding accountable those who are dishonest in their dealings with government programs. This settlement represents HUD OIG’s commitment to protect the integrity of HUD’s programs and safeguard taxpayer dollars that support vulnerable communities who rely on them,” said Inspector General Rae Oliver Davis with the U.S. Department of Housing and Urban Development. “We appreciate the continued support of the United States Attorney in bringing this matter to today’s conclusion and look forward to our continued partnership.”

The civil settlement resolves the claims brought by Kevin Kondrat and Jessica Jones under the qui tam or whistleblower provisions of the False Claims Act.  Under these provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery.  The whistleblowers will receive $179,260.85 from the settlement.  The qui tam case is captioned United States ex rel. Kondrat, et al. v. Siemens Corporation, et al., No. 21-10594 (E.D. Mich.). 

The matter was investigated by Assistant U.S. Attorney Jonny Zajac of the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from HUD-OIG.

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

DETROIT – Former Wayne County Roads Division employee John Gibson was sentenced to 1½  years in prison today for conspiring to defraud the county out of over $2.3 million, United States Attorney Dawn N. Ison and Wayne County Prosecutor Kym Worthy announced.

Ison and Worthy were joined in the announcement by Cheyvoryea Gibson, Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Wayne County Sheriff Raphael Washington.

Gibson, 55, of Detroit, pleaded guilty in July 2023. He and fellow Wayne County employee Kevin Gunn engaged in a scheme to use taxpayer dollars to make unauthorized purchases of generators and other power equipment from retailers in southeast Michigan which they sold for hundreds of thousands in personal profit.  Gunn also pleaded guilty as part of the scheme and was sentenced to nearly 3 years in prison on November 8, 2023.

According to court documents, in March of 2021, the Wayne County Sheriff’s Department began an investigation into the potential misuse of taxpayer dollars. The Sheriff’s Department requested the assistance of the FBI to investigate the criminal actions of Gunn, Gibson, other employees of the Wayne County Roads Division, and vendors to Wayne County. At the beginning of the investigation, the Wayne County Prosecutor’s Office secured a search warrant which broke open the case and exposed the embezzlement scheme. Investigators with the Wayne County Prosecutor’s Office have played an ongoing and important role in the investigation. 

As part of the scheme to defraud, between January 2019 and August 2021, Gunn solicited Wayne County vendors to provide generators and other power equipment the vendors were not authorized to provide under their contracts with the county. To conceal the scheme to defraud, Gunn instructed the vendors to list on their invoices different items which they were authorized to sell as part of their Wayne County contracts. Roads Division employees approved and paid each vendor’s invoice with taxpayer funds. After these fraudulent purchases were verified and approved by Roads Division employees, Gibson took possession of the equipment, paid Gunn for the items, and resold the generators and other items to members of the public.

A review of invoices from Wayne County vendors revealed that between January 16, 2019, and August 3, 2021, Wayne County vendors sold to Wayne County 596 unauthorized generators, and a variety of other power equipment including lawnmowers, chainsaws, and backpack blowers. The purchase of these items was not authorized under any vendor contract with Wayne County nor were the items ever provided to or used by Wayne County. The total value of equipment obtained as part of the scheme was over $2.3 million.

United States Attorney Dawn Ison said, “Today’s sentence represents our commitment to ensuring that the citizens of the Eastern District of Michigan are served by public officials who elevate the needs of the public over their own self-interest.”

“This sentence should serve as a deterrent to prevent any future employees from stealing from Wayne County.  If you do, there will be life changing criminal consequences,” said Wayne County Prosecutor Worthy.

"The alleged misconduct by Mr. Gibson was a betrayal of his fellow government employees and is not representative of the honest and hard work they perform on a daily basis," stated Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "The defendant was entrusted with taxpayer money, which was intended to be used for a specific purpose, not his personal profit. I would like to commend Prosecutor Kym Worthy and the Wayne County investigators for their assistance during this case. The FBI will continue to work with our law enforcement partners to take strong action against individuals who seek to corrupt the integrity and fair administration of government programs."

“The alleged actions of these individuals are nothing short of disgraceful,” said Sheriff Raphael Washington. “To brazenly steal from hardworking taxpayers and fraudulently line their own pockets while holding positions of public trust make these crimes all the more deplorable. Today’s sentencing is another example of our strong commitment to working together.”

The investigation of this case was conducted by the Wayne County Prosecutor’s Office, the Wayne County Sheriff’s Department, and the Federal Bureau of Investigation's Detroit Area Corruption Task Force. In addition, Wayne County Executive Evans and his administration have been assisting and cooperating with the investigation since they first learned of fraudulent activity within their organization. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.

DETROIT - Merrill Technologies Group, Inc., and its subsidiaries, Merrill Tool and Machine, Inc. (MTM), Merrill Fabricators, Inc., Merrill Engineering & Integration, Inc., Merrill Aviation and Defense, Inc. (collectively, Merrill Technologies Group) have agreed to pay $5,000,000 to resolve allegations that MTM violated the False Claims Act by falsely overstating cost or pricing data included in a subcontract proposal for work under a contract with the U.S. Department of the Army. 

In 2006, a government prime contractor and the U.S. Army’s Tank Automotive Command (TACOM) entered into a sole-source agreement under which the prime contractor agreed to manufacture and assemble components of upgrades to various armored vehicles.  Thereafter, in 2010, the prime contractor entered into a subcontract with MTM to perform some of the work under its contract with TACOM.  During that process, MTM submitted a subcontract proposal to the prime contractor, which the prime contractor ultimately relied on to negotiate a firm-fixed price contract with TACOM.  The settlement announced today resolves the government’s allegations that MTM’s subcontract proposal overstated MTM’s cost or pricing data, thereby causing the prime contractor to negotiate and certify the prime contract with TACOM based on inflated costs, which in turn caused TACOM to pay overcharges at the prime and subcontractor levels.

“Government contractors must be completely above board when seeking payment under government contracts,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan.  “This settlement demonstrates our commitment to hold accountable contractors who cause the Government to overpay, and who enrich themselves at taxpayer expense.”  U.S. Attorney Ison added, “I would like to commend the leadership at Merrill Technologies Group for making things right once the government’s concerns were brought to its attention by federal investigators.”

“This settlement is the result of Army CID’s commitment to protect the government, the Army, and most importantly, the taxpayer, from those whose actions can erode the trust and confidence in our military and warfighting capability. Army CID and our law enforcement partners remain committed to hold accountable those who attempt to defraud the government,” said Keith K. Kelly, Special Agent-in-Charge Army Criminal Investigation Division, Fraud Field Office.

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Chad Sibley (Relator).  Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.  In this case, Relator will receive $900,000.00 as part of the settlement.  The qui tam case is captioned United States ex rel. Sibley v. Merrill Tool and Machine, et al., Case No 15-13066 (E.D. Mich.).

The resolution was the result of a coordinated effort by the United States Attorney’s Office for the Eastern District of Michigan, the U.S. Army Criminal Investigation Division, and the Defense Contract Audit Agency.  The matter was handled by Assistant United States Attorney Carolyn Bell Harbin from the U.S. Attorney’s Office for the Eastern District of Michigan.  The claims resolved by the settlement are allegations only; there has been no determination of liability.

DETROIT – A Detroit man was convicted by a federal jury today on charges of sex trafficking a minor and producing child pornography, United States Attorney Dawn N. Ison announced today.

Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan.  

Lavonte Sampson, 39, was convicted following a five-day jury trial before United States District Judge Gershwin A. Drain. The jury deliberated approximately two hours before returning their verdicts. 

Evidence presented at the trial established the investigation began when the Federal Bureau of Investigation’s Southeast Michigan Trafficking and Exploitation Crimes Task Force conducted an undercover operation to recover a missing 15-year-old girl.  A search of her cellular phone uncovered Facebook messages wherein Sampson recruited her to engage in commercial sex work.  He took pictures of her and advertised her online for commercial sex. He took her to a motel in Detroit, where he arranged dates between her and other men and collected the proceeds. Sampson also had sex with the victim, recorded it without the victim’s knowledge, and sent that video recording to the undercover agent when arranging a date.  

U.S. Attorney Ison stated, “This defendant exploited a vulnerable child. He sold her body to other men for his own personal gain. Combatting human trafficking remains one of our office’s top priorities, especially when it involves children. We will continue to use every tool in our arsenal to battle the sexual exploitation of vulnerable victims in our communities and ensure that predators are held accountable. And while we aggressively pursue this type of justice for all human trafficking victims, at all times, this verdict today, during the end of Human Trafficking Prevention Month, puts a fine point on our unwavering commitment to this important work.” 

“The FBI is deeply committed to protecting the most vulnerable members of our society, particularly our children, and bringing predators like the defendant to justice,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “We would like to extend our appreciation to our wide network of law enforcement partners, particularly those on the FBI’s Southeast Michigan Trafficking and Exploitation Crimes (SEMTEC) Task Force, for their critical support in investigating sexual predators who commit crimes against children. The FBI encourages continued vigilance, cooperation, and reporting from the public to help identify and recover victims and bring perpetrators to justice. If you believe you may have any information on crimes of this nature, please contact the National Center for Missing & Exploited Children at 1-800-THE-LOST or online at report.cybertip.org.”

The Court will schedule a sentencing hearing at a later date.  Sampson faces a mandatory-minimum sentence of 15 years in prison and a maximum up to life.

January is Human Trafficking Prevention Month, a time to educate ourselves and raise awareness in our communities about this devastating crime that violates the most basic human rights –freedom.  If you are a victim of human trafficking or suspect you know one, please call the FBI, your local law enforcement, or the National Human Trafficking Hotline at 1-888-373-7888.

This case was investigated by the Federal Bureau of Investigation’s Southeast Michigan Trafficking and Exploitation Crimes Task Force and was prosecuted by Assistant U.S. Attorneys David Cowen, Jeanine Brunson, and Ranya Elzein.

FLINT — Reginald L. Hunter, 27, of Mobile, Alabama pleaded guilty before U. S. District Court Judge Kay F. Behm for his role in traveling to Michigan in a murder-for-hire scheme, U.S. Attorney Dawn N. Ison announced. 

Ison was joined in the announcement by James Deir, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Detroit Field Division, and Cheyvoryea Gibson, Special Agent in Charge of Federal Bureau of Investigation’s Detroit Field Office. 

According to court documents, on February 7, 2022, an individual  identified as Person-1 solicited Hunter and his co-defendant Julius K. Jordan to travel from Alabama to Flint, Michigan, to murder someone in exchange for money.  That individual sent money to Hunter and Jordan to travel to Michigan.  Once Jordan and Hunter arrived in Michigan, they met with Person-1 who provided Jordan and Hunter with assault rifles. They later began looking for the individual who they were hired to kill. 

On the evening of February 15, 2022, as Jordan and Hunter drove through a neighborhood looking for their intended victim, Jordan failed to stop at a stop sign. Michigan State Police troopers saw Jordan commit the traffic violation and conducted a traffic stop.  During the stop, the troopers saw the assault rifles in the car. The troopers seized a short barrel, semi-automatic rifle with a collapsible stock from the floorboard near Jordan’s feet. They also seized another  semi-automatic rifle from the front passenger floorboard near Hunter’s feet. Both rifles were loaded with chambered rounds and high-capacity magazines. 

Jordan previously pleaded guilty and was sentenced to nearly 16 years in prison. Hunter is scheduled to be sentenced on May 28, 2024.  The investigation of Person-1 remains ongoing. 

“These defendants were hired guns who agreed to end someone’s life for money,  but the outstanding work of the Michigan State Police undoubtedly saved a life,” stated U.S. Attorney Ison.  “We will continue to focus our efforts on those driving violence in our community, including those near and those who elect to enter our community to commit violent acts.”

“This case represents a tale as old as time - choices have consequences.  Hunter pleaded guilty to a choice he made to come up to Michigan from Alabama to murder someone. Now, he will have many years to reflect about his life choices behind bars.  The message is simple - if you commit gun crime in Michigan, expect to pack your bags for prison,” said Special Agent in Charge Deir.

"The thwarted murder-for-hire plot in this case underscores the significance of collaborative efforts between law enforcement agencies to ensure the safety of the citizens in our community," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "Had it not been for the combined efforts of the ATF, Michigan State Police, and Flint Police Department working together as part of the Genesee County Safe Streets Task Force, the consequences could have been far more catastrophic. The FBI is committed to investigating violent crimes such as this and we remain steadfast in our goal of making Michigan's streets safer for everyone."

This investigation was conducted by troopers of the Michigan State Police and special agents of the ATF’s Flint Field Office and the FBI’s Flint Resident Agency.  The case is being prosecuted by Assistant United States Attorneys Jules M. DePorre and Anthony P. Vance.

DETROIT – A Detroit man was sentenced to 15 years in federal prison today for leading a drug organization that trafficked methamphetamine across the country, United States Attorney Dawn N. Ison announced today. United States District Judge David M. Lawson sentenced the leader of that organization for his role overseeing the drug conspiracy and in a separate $2.1 million pandemic unemployment insurance fraud conspiracy.

Ison was joined in the announcement by Orville O. Greene, Special Agent in Charge of the Detroit Division of the Drug Enforcement Administration, and Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General.

Robert Lampkin, 41, led a drug conspiracy that purchased over 9 kilograms of methamphetamine from a supplier in California that codefendants JoShawn Bennett, 37, Tiffany Stockman, 24 and Tammie Wade, 32, brought back to Michigan in airline luggage. Lampkin and codefendant Brenden Lockridge, 26, separately used stolen personal identifying information of other individuals to file fraudulent claims for pandemic unemployment assistance in multiple states. Lampkin’s and Lockridge’s sentences also require them to pay back the $2.1 million stolen from multiple states as restitution.

“We will use every resource available to combat those who spread the scourge of illegal drugs in our communities,” stated United States Attorney Dawn Ison.  “We also won’t cease our efforts to hold accountable those who used a global pandemic to enrich themselves at the expense of taxpayers.”

“The men and women of the DEA and our law enforcement partners remain committed to targeting interstate methamphetamine traffickers contributing to the nation’s drug crisis. This sentence reflects our continued resolve to partner with all our law-enforcement counterparts to fight greed, violence, and drug addiction,” said DEA Special Agent in Charge Orville O. Greene.

"Robert Lampkin conspired with Brenden Lockridge to file fraudulent unemployment insurance (UI) claims in the names of identity theft victims, receiving benefits to which they were not entitled. They enriched themselves by defrauding a program that was intended to assist struggling American workers during an unprecedented global pandemic," stated Special Agent-in-Charge Irene Lindow, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.  "We and our law enforcement partners are committed to identifying and prosecuting the criminals who took advantage of the COVID-19 pandemic by using stolen identities to fraudulently obtain pandemic UI benefits."

The case was investigated by agents of the Drug Enforcement Administration and Department of Labor Office of Inspector General. Assistant United States Attorney Paul Kuebler prosecuted the case for the United States.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

DETROIT - A Northville man pleaded guilty today to providing a financial institution with false documentation in connection with a bank loan, announced United States Attorney Dawn N. Ison.

Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Detroit Field Division

Theodore Toloff, 65, entered his guilty plea today before United States District Judge David M. Lawson.

According to court records, Toloff served as the Chief Financial Officer of the Frank W. Kerr Company (“Kerr”), a now-defunct pharmaceutical wholesaler that had been based in Novi, Michigan. Kerr had a revolving credit agreement with two large financial institutions under which the company borrowed funds up to $60 million pursuant to a calculation dependent on the company’s eligible accounts receivable and inventory. Toloff admitted that he submitted false documentation to the financial institutions that included $18 million in ineligible accounts receivable and that Kerr borrowed additional funds after this false documentation was submitted.

“Today’s guilty plea reflects my office’s continued commitment to ensuring that our banking and lending systems are not distorted through false financial information,” stated United States Attorney Dawn N. Ison.

“The defendant admitted to providing false documents to a financial institution, undermining the law and integrity of our financial systems, said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. "The FBI works tirelessly with our partner law enforcement and regulatory agencies to investigate those who commit financial crimes. We urge the public to submit tips on alleged crimes such as those detailed in this case to 1-800-CALLFBI (1-800-225-5324) or online at www.tips.fbi.gov."

Toloff faces a statutory maximum penalty of 30 years imprisonment.

The case is being prosecuted by Assistant U.S. Attorney Andrew J. Yahkind. The investigation was conducted by the Federal Bureau of investigation.

The Justice Department announced today that the Michigan Department of Corrections (MDOC) has successfully implemented reforms required by a 2021 settlement agreement that resolved alleged violations of the Religious Land Use and Institutionalized Persons Act (RLUIPA). The settlement agreement addressed MDOC’s now revised policies that required a five-person minimum for group worship and religious activities, prohibited group religious practice for certain religious groups, including Hindu, Yoruba, Hebrew Israelite and Thelema practitioners, and limited access to the kosher-for-Passover diet to those on the kosher diet year-round.  

MDOC changed each of these policies to expand access to religious practice in compliance with the settlement. Under the revised policies, MDOC allows group religious practice for groups of two or more, permits previously banned religious groups to hold group services and allows people to participate in the Passover diet even if they do not participate in the kosher diet year-round. Department monitoring revealed that a significant number of people whose religious exercise was previously limited by policy can now worship together and can celebrate Passover consistent with their beliefs.

“All people have the right to religious freedom and the right to be free from religious discrimination in our country, and that right exists across the country, including inside our jails and prisons,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our settlement with MDOC stands as a model, helping to increase access by incarcerated people to meaningful religious activities across the system.”

“U.S. citizens do not surrender their right to religious freedom upon incarceration, and my office will not stop defending an individual’s right to exercise one’s faith simply because they are serving a sentence,” stated U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “We are extremely pleased to see that MDOC has made significant and systemic changes to ensure that inmates in our state can practice their religion while in custody.”

“Our office is committed to enforcing federal civil rights laws, which protect the fundamental right of our citizens to freely exercise religion,” said First Assistant U.S. Attorney Jennifer McManus for the Western District of Michigan. “The settlement we reached with MDOC in 2021 protects that right and has resulted in meaningful change that allows institutionalized persons in Michigan to practice their religion and participate in religious services free from unlawful burdens.”

This joint investigation by the Civil Rights Division’s Special Litigation Section and the U.S. Attorneys’ Offices for the Eastern and Western Districts of Michigan began in 2019. The settlement agreement was signed in 2021. Since that time, the Justice Department closely monitored implementation, reviewing documents and conducting site visits. MDOC maintained substantial compliance with the settlement agreement for two years and, as a result, the department has concluded its monitoring activities. 

For additional information about the Civil Rights Division and the Special Litigation Section, please visit www.justice.gov/crt/special-litigation-section. Those interested in finding out more about RLUIPA may visit www.justice.gov/crt/religious-land-use-and-institutionalized-persons-act-0.

DETROIT – A Detroit resident was sentenced today for her role in a scheme to steal unemployment assistance funds, announced United States Attorney Dawn N. Ison.  Autumn Mims, 31, was sentenced to 5 years and 5 months in prison after having pleaded guilty to engaging in aggravated identity theft and conspiring to engage in wire fraud.  Co-defendant William Haynes, 27, will be sentenced next month.

Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Detroit Field Division; Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor-Office of Inspector General; and Julia Dale, Director of the State of Michigan Unemployment Insurance Agency

Mims was sentenced by United States District Judge Mark A. Goldsmith.

Mims was a contract employee for the State of Michigan Unemployment Insurance Agency (MUIA), working as an Unemployment Insurance Examiner.  Her duties included reviewing, processing, and verifying the legitimacy of unemployment insurance claims.

Mims and Haynes admitted to conspiring together to obtain illegitimate uninsurance benefits issued in the names of third parties.

According to court records, shortly after Mims began working with the Michigan Unemployment Insurance Agency in August 2020, she began using her insider access to fraudulently process claims in the names of third parties without their knowledge or authorization.  As part of the scheme, Mims and/or Haynes (1) altered direct deposit information for third-party unemployment insurance assistance; (2) accessed third-party unemployment insurance assistance claim information without authorization; (3) completed false and fraudulent certifications for third-party unemployment insurance assistance benefits; (4) opened unauthorized bank accounts in the names of third parties; (5) conducted cash withdrawals of unemployment insurance assistance issued in the names of third parties; and (6) conducted financial transactions utilizing unemployment insurance assistance funds issued in the names of third parties.

Mims also admitted that while she was working with the MUIA and executing her fraud, she was also fraudulently obtaining unemployment insurance benefits for herself by falsely claiming that she was unemployed.

Mims was also ordered to pay $583,409 in restitution.

United States Attorney Ison stated: “We remain committed to prosecuting those who choose to enrich themselves by stealing government funds earmarked for those members of our community who are truly in need.”

“The defendant’s decision to conspire in order to obtain unlawful uninsurance benefits for personal profit while businesses and families were struggling during the COVID-19 pandemic is unconscionable,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “Further, Ms. Mims’ actions were a direct betrayal of the public trust granted to her as a contract Unemployment Insurance Examiner for the State of Michigan. Providing false information and using stolen identities to fraudulently gain access to relief funds is a theft of taxpayer money. The FBI remains committed to working with our network of law enforcement partners to investigate and hold those accountable who seek to personally profit and defraud government assistance programs.”

"Autumn Mims, a former contract employee for the State of Michigan Unemployment Insurance Agency (MUIA), conspired with William Haynes to defraud the state of Michigan and the Pandemic Unemployment Assistance program. Mims abused her access to MUIA systems to fraudulently process unemployment insurance (UI) claims that Haynes had fraudulently certified, the proceeds of which were deposited into bank accounts that they controlled,” stated Special Agent-in-Charge Irene Lindow, Great Lakes Region, U.S. Department of Labor, Office of Inspector General. “We and our law enforcement partners are committed to identifying and prosecuting the criminals who took advantage of the COVID-19 pandemic by fraudulently obtaining pandemic UI benefits using stolen identities.”

“Autumn Mims’ criminal scheme tarnished all the critical and tireless work that staff at the Michigan Unemployment Insurance Agency performed during a global pandemic that hit Michigan hard. She does not by any stretch reflect the outstanding work habits of UIA’s professional employees, who abide by strict ethics and security clearance policies,” said MUIA Director Julia Dale. “I am proud of the dedication demonstrated every day in service to their fellow Michiganders and employers. UIA will continue to work with law enforcement at the local, state, and federal level to ensure that bad actors are brought to justice.” 

The case was prosecuted by Assistant United States Attorney Andrew J. Yahkind. The investigation was conducted jointly by the Department of Labor, Office of Inspector General, Federal Bureau of Investigation’s Detroit Area Public Corruption Task Force, and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity.

DETROIT – Colin Clemente Martin, 34, of Center Line, Michigan, was sentenced to 40 years in federal prison on charges of coercion and enticement of a minor and the sexual exploitation of a minor by United States District Judge Denise Page Hood, United States Attorney Dawn N. Ison announced today.  Martin pleaded guilty to the charges in October 2022.

Ison was joined in the announcement by Angie Salazar, Special Agent in Charge of Homeland Security Investigations.

According to court records, in 2014 and 2016 to 2017, Martin posed as a female talent scout on the internet application Musical.ly. After gaining the trust of his young victims, he forced them to engage in sexual and other horrific acts to create videos and images for his own pleasure and gratification. If the victims asked to stop doing what Martin demanded, he threatened to share the videos and images with the victims’ friends. Martin victimized at least eight identified minors.

Martin was finally stopped thanks to the bravery of his victims, several of whom reported what happened to authorities in Illinois, Ohio, and Toronto, Canada. This led to the Michigan State Police’s involvement in 2019, and to Homeland Security Investigations’ execution of a search warrant at Martin’s home in July 2020. HSI Agents worked tirelessly to analyze Martin’s devices and identify victims.

“The lengths to which individuals like Martin will go to exploit and traumatize children is truly reprehensible. The conduct in this case is horrific.  Hopefully, this sentence sends a clear message to like-minded individuals: we will not allow you to harm our children and will use the full arsenal of our federal laws to stop you,” stated U.S. Attorney Ison.

“I commend the victims in this case for their courage in coming forward to report these crimes. Their efforts helped prevent the victimization of other children and put this predator away for a long time,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “We should all continue to be mindful of the dangers our children face online and have conversations early and often on how to report this crime to the authorities.”

This case was prosecuted by Assistant United States Attorney Tara Hindelang and was investigated by agents of Homeland Security Investigations.

DETROIT - The operator of a supposed foreign exchange trading firm has been indicted on eleven counts of wire fraud and one count of money laundering in connection with his alleged operation of a Ponzi scheme that stole $100 million from investors, United States Attorney Dawn N. Ison announced.

Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Division of the Federal Bureau of Investigation, and Charles Miller, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service, Criminal Investigation Division.

Darren Anthony Robinson, 53, is a U.S. citizen who previously operated out of the country of Panama. After he was previously charged in a criminal complaint in this matter and released on bond, Robinson is alleged to have improperly removed his GPS tether and become a fugitive.  Robinson is currently wanted on an arrest warrant issued by the United States District Court for the Eastern District of Michigan. Individuals with information regarding Robinson’s whereabouts are encouraged to contact the FBI at 1-800-Call-FBI (1-800-225-5324), your local FBI office, the nearest American Embassy or Consulate, or submit a tip online at tips.fbi.gov.

• local FBI office
• nearest American Embassy or Consulate
• www.tips.fbi.gov

According to the indictment and other court records, Robinson operated a supposed trading firm known as “QYU,” which was located in Panama and the Cayman Islands. QYU represented to investors that it was consistently generating stellar investment results. For example, in one QYU document, the firm claimed that a $100,000 investment into its fund in 2014 would have grown to over $2 million by 2021. That same document claimed the fund did not have a single losing month over that same period. QYU investors were promised guaranteed returns and told the firm was only paid on trading profits, not investor principal.

It is alleged that QYU was simply a Ponzi scheme and investor funds were largely not used for trading activity. Instead, new investor funds were used to pay other investor distributions, cover QYU business expenses, compensate QYU employees, and fund Robinson’s lifestyle. QYU investors were provided with false account statements and fictious trading data. Court records indicate that QYU obtained an estimated $100 million from investors.

Law enforcement has identified many apparent QYU investors from southeast Michigan. Potential victims are encouraged to contact the Federal Bureau of Investigation at www.fbi.gov/QYU_holdings_victims  (Please note that the link to the website is case sensitive).

“Our resolve is to bring Darren Robinson to account for his alleged multimillion-dollar Ponzi scheme with victims around the world,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “I would like to thank the Internal Revenue Service, Criminal Investigation Division, our international partners, and all the law enforcement agencies dedicated to achieving justice in this case. Investment fraud can be crippling for its victims, and the FBI is committed to identifying and working with anyone impacted by Robinson’s scheme.”

An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The defendant faces up to twenty years in prison on each charge of wire fraud and up to 10 years in prison on the charge of money laundering.

The case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service—Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Andrew J. Yahkind.

DETROIT – A federal judge sentenced Detroit resident James Mayfield today to 2 years and 6 months in prison for his role in a scheme to defraud state unemployment insurance agencies during the Covid-19 pandemic, United States Attorney Dawn N. Ison announced. Mayfield is the last of 15 defendants to be sentenced for their roles in related unemployment insurance schemes that were carried out during the Covid-19 pandemic.

Ison was joined in the announcement by Department of Labor – Office of the Inspector General (DOL-OIG) Special Agent-in-Charge of the Great Lakes Region, Irene Lindow, Special Agent in Charge Cheyvoryea Gibson of the Detroit Feld Office of the Federal Bureau of Investigation (FBI) and Director Julia Dale, Michigan Unemployment Insurance Agency.

According to court records, between February 1, 2020, and January 26, 2021, Sharodney Harrison devised schemes to defraud several states and the federal government by filing fraudulent unemployment insurance claims using other people’s personal identifiable information without their knowledge or consent. Harrison and his co-conspirators used various means to further their schemes.  Five of the co-conspirators traveled to California between August and September 2020 and used California mailing addresses, including their AirBnB address, to commit unemployment insurance fraud. The schemes tied to Harrison resulted in the filing of nearly 600 fraudulent unemployment insurance claims in 19 states that resulted in a loss of $2,020,851 to state unemployment insurance agencies. If all the fraudulent claims had been approved, the resulting loss would have been $6,920,388.

The investigation into Harrison started after the FBI and DOL-OIG began investigating more than one hundred unemployment insurance claims that were filed with the State of Michigan Unemployment Insurance Agency from two IP addresses registered to homes in Detroit. As a result of this investigation, 9 individuals were charged together in one case with conspiracy to commit wire fraud and/or aggravated identity theft.  All have pleaded guilty and have been sentenced as follows:

• Sharodney Harrison – Sentenced to 60 months in prison
• Seandrea Crawford – Sentenced to 30 months in prison
• Sharrell Harrison – Sentenced to 42 months in prison
• Sha-Ron Harrison – Sentenced to 46 months in prison
• Sharease Harrison – Sentenced to 26 months in prison
• Edward Taylor – Sentenced to 54 months in prison
• James Mayfield – Sentenced to 30 months in prison
• Frank Jennings – Sentenced to 24 months in prison
• Sharonda Griffin – Sentenced to 26 months in prison

As a result of this investigation, 6 people were charged in separate cases with conspiracy to commit wire fraud or wire fraud.  All have pleaded guilty and have been sentenced. As part of their sentences, the defendants were also ordered to pay a total of over $2 million in restitution to the victims of their fraud.

“We continue to investigate and prosecute those who took advantage of the Covid-19 pandemic to enrich themselves at the expense of taxpayers, while ignoring the effect on those whose identities they stole,” U.S. Attorney Dawn Ison said.

"Sharodney Harrison conspired with a dozen individuals, including James Mayfield, to defraud 19 state workforce agencies of more than $2 million in unemployment insurance (UI) benefits to which Harrison and his co-conspirators were not entitled. Harrison and his co-conspirators filed fraudulent UI claims in the names of identity theft victims, enriching themselves by defrauding a program that was intended to assist struggling American workers during an unprecedented global pandemic," stated Special Agent-in-Charge Irene Lindow, Great Lakes Region, U.S. Department of Labor, Office of Inspector General. “We and our law enforcement partners are committed to identifying and prosecuting the criminals who took advantage of the COVID-19 pandemic by fraudulently obtaining pandemic UI benefits using stolen identities.”

“Today’s sentencing finalizes the FBI’s efforts to hold a large-scale network accountable for defrauding unemployment insurance agencies during the COVID-19 pandemic,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “Providing false information to gain access fraudulently to relief funds is a theft of taxpayer money. The FBI remains committed to working with our network of law enforcement partners to investigate and hold those accountable who seek to profit personally and defraud government assistance programs.”

“The Michigan Unemployment Insurance Agency is proud of its role in helping to identify this network of criminals who were brazen enough to steal from taxpayers across the country,” UIA Director Julia Dale said. “Whether a crime is committed in Michigan or also includes programs in other states, our staff works closely with state and federal law enforcement to refer cases for investigation, stop the theft of taxpayer money, and hold fraudsters accountable.”

These cases were prosecuted by Assistant U.S. Attorney Meghan Bean and were investigated jointly by the FBI and DOL- OIG.

DETROIT - A West Bloomfield doctor was sentenced to 5 years in federal prison after pleading guilty to the unlawful prescribing of prescription drug-controlled substances, announced United States Attorney Dawn N. Ison. 

Joining Ison in the announcement was Special Agent in Charge Orville O. Greene, U.S. Drug Enforcement Administration (DEA).  

Scott Henry Cooper, 61, was sentenced before United States District Judge Denise Page Hood in Detroit. 

During his guilty plea, Cooper admitted that he practiced as a primary care physician at Comprehensive Medical Associates, located in West Bloomfield, MI, during 2013-2018.  Some of his patients sought highly abused and valuable prescription drug-controlled substances such as oxycodone, hydrocodone, methadone, alprazolam (Xanax) and dextroamphetamine-amphetamine (Adderall). Cooper admitted in an interview with the DEA that his controlled substance patients were problem patients, he did not want to see them, and in fact he did not see them routinely, but continued to prescribe their controlled substances.  He has not been allowed to prescribe controlled substances since 2020.   

In the case of the patient that formed the basis of his guilty plea, the defendant prescribed oxycodone and other highly abused drugs for almost three years without having patient visits or contact with the patient.  While the patient served almost three years in prison, the defendant wrote monthly controlled substance prescriptions, totaling over 7,000 dosage units, that were picked up by the patient’s relative.  When the patient was released from prison and told Cooper he had been in prison, Cooper continued prescribing the same dangerous combination of drugs he had been prescribing while the patient was in prison.   

 “Oxycodone is extremely powerful, addictive, and easily abused.  Michigan has seen devastating statistics relating to opioid drug overdoses in the last five years. My office remains committed to pursuing medical providers who abuse their license and ultimately inflict this type of significant harm on our community,” stated U.S. Attorney Ison. 

DEA Special Agent in Charge Greene stated, “Healthcare professionals who blatantly disregard their commitments to safeguard controlled substances do so at the risk of endangering their patients and undermining critical public health efforts to address the opioid epidemic. Today’s sentencing emphasizes law enforcement’s commitment to saving lives by investigating, arresting, and prosecuting those responsible for fueling the overdose crisis.”

The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that are contributing to the nation’s opioid crisis.

The case was prosecuted by Assistant United States Attorney Wayne F. Pratt.  The investigation was conducted by the Drug Enforcement Administration.  

DETROIT - Livonia pharmacy owner Zaman Alshafey was sentenced to three years in federal prison by United States District Court Judge Jonathan J.C. Grey following his guilty plea to wire fraud and money laundering. He was also ordered to forfeit approximately $9 million dollars as the gross proceeds of his unlawful conduct, announced United States Attorney Dawn N. Ison.

Ison was joined in the announcement by Special Agent in Charge Ronne Malham, of the Food and Drug Administration.

Alshafey used his pharmacy license and Medpro Pharmacy in Livonia to order more than $2.5 million dollars of pint-sized bottles of promethazine cough syrup from various wholesale distributors who operate outside the State of Michigan.  Alshafey then sold the promethazine cough syrup to drug dealers without a valid prescription from a licensed practitioner and he failed to disclose this to the wholesalers. Alshafey paid the wholesalers via wire transfers from funds derived from the unlawful dispensing of the promethazine.

Promethazine is restricted to be dispensed by prescription only per the bottle’s label. 

Promethazine cough syrup can have tranquilizing and euphoric effects when consumed at higher-than-recommended dose, especially when mixed with alcohol or other drugs such as fentanyl.   Promethazine cough syrup has been referred on the illegal street market as “Green Drink” or “Purple Drink.” 

“A pharmacist violates the public’s trust by unlawfully dispensing any drug, including promethazine cough syrup,” said U.S. Attorney Ison.  “We will continue to prosecute licensed professionals who wantonly engage in conduct that significant harms are community.”

“Providing misbranded prescription drugs puts all consumers’ health at risk,” said Special Agent in Charge Ronne Malham, FDA Office of Criminal Investigations Chicago Field Office. “We will continue to pursue and bring to justice those who jeopardize the public’s health.”

The case was prosecuted by Assistant United States Attorney Regina R. McCullough. Assistant United States Attorney Gjon Juncaj, of the Money Laundering & Asset Recovery Unit handled related forfeiture matters and the investigation was conducted by the Food and Drug Administration.

DETROIT – Today, following a three-day trial before U.S. District Judge Judith E. Levy, a federal jury convicted Reginald Hitchcock on charges of fentanyl and cocaine trafficking, United States Attorney Dawn N. Ison announced.

Ison was joined in the announcement by Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration, Detroit Division.

Detroit resident Reginald Hitchcock, 46, was convicted of possessing more than 40 grams of fentanyl and more than 500 grams of cocaine with the intent to distribute them. He was also found guilty of possessing ammunition after being convicted of a felony. Evidence at trial showed that Hitchcock was selling drugs out of his house and car on Detroit’s west side. Agents from the Drug Enforcement Administration obtained and executed a search warrant on Hitchcock’s home and car. They found more than 290 grams of fentanyl, more than 1 kilogram of cocaine, and 11 rounds of ammunition inside a hidden compartment in the staircase. Hitchcock was arrested in his car with another 50 grams of fentanyl concealed in a secret compartment in the driver’s seat.

“Our office will vigorously pursue drug traffickers who push dangerous drugs like fentanyl and cocaine in our community.” stated United States Attorney Dawn Ison. “This verdict is a result of outstanding work by the Drug Enforcement Administration from the start of its investigation through its finish.”

Because of his prior criminal convictions, Hitchcock is facing a mandatory 15-year prison sentence, with a maximum possible sentence of life imprisonment.

This case was investigated by the Drug Enforcement Administration. It was prosecuted by AUSAs Thomas Franzinger and Jeremiah Smith.  

BAY CITY – A federal grand jury in Bay City returned an indictment yesterday charging Eben Gray II, 19 of Flint, Jermain L. Williams, 18 of Flint, and Donald R. Carson, 21 of Flint, for their role in breaking into a Dunham’s Sports store located in Burton, Michigan and stealing 25 firearms, announced United States Attorney Dawn N. Ison.

Joining in the announcement was James Deir, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Detroit Field Division.

The three men were charged with conspiracy to steal firearms from a federally licensed firearms dealer and to possess stolen firearms, theft of firearms from a federally licensed firearms dealer, and possession of stolen firearms. 

As alleged in the indictment and other court documents, sometime in December of 2023, the three men and others conspired to break into Dunham’s, steal firearms, and then sell those firearms for profit.  During the day on December 15, 2023, Gray and Williams went to Dunham’s to learn about their gun shop and to obtain information to assist them in planning the burglary. Later that same day, and into the early morning hours of December 16, 2023, the three men and two juveniles drove to a location near Dunham’s where they parked their car and approached Dunham’s on foot.  The group, all of whom were wearing masks, broke a window at the store and forced their way through a metal security gate.  Once inside the store, the group broke a glass display case and stole 25 firearms.  They placed the firearms into bags and then fled the scene.  The indictment alleges that the men later sold or otherwise disposed of the firearms.

“Stealing firearms and putting those stolen guns out on the streets of our community is both reprehensible and dangerous.  We will continue to hold to account those individuals who threaten the safety of our communities with their reckless behavior,” said U.S. Attorney Ison. 

“Robberies and burglaries of gun dealers represent one of the biggest threats to our community’s public safety. Eben Gray, Jermain Williams, and Donald Carson are nothing more than common-day thugs who put personal greed before the safety of our community. In my experience, said Special Agent in Charge James Deir, “these folks represent the most deserving candidates for Federal prosecution. In the end, they’ll have a lot of time to reflect on their wrongdoing.”

The grand jury also returned an indictment against Gray for possessing a machinegun in a separate incident on December 17, 2023.

This case was investigated by the special agents from the ATF and the Burton Police Department. 

The case is being prosecuted by Assistant United States Attorney Timothy Turkelson. Anyone with any information on those stolen guns is asked to contact the ATF at 1-800-atf-guns.

An indictment is only a charge and is not evidence of guilt.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

DETROIT – A St. Clair County man was sentenced to 15 years in federal prison for attempting to coerce a minor into producing sexually explicit images online, announced United States Attorney Dawn N. Ison. 

Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Detroit Field Division.

Raymond Alexander Elliott, 35, of Columbus, Michigan, was sentenced by United States District Judge Gershwin A. Drain. In 2021, Elliott engaged in a pattern of sexual exploitation online, requesting sexually explicit images of a 13-year-old boy who resided in Missouri.

The FBI began investigating Elliott after the victim disclosed abuse and gave agents his cellphone to use to communicate with those contacting him. Elliott reached out to the victim—not knowing it was an FBI agent with whom he was now communicating—requesting that the 13-year-old resume their sexual conversations and send him additional sexually explicit images. The FBI was able to track Elliott down to his home in Columbus, Michigan, after identifying him from the social media accounts through which he was attempting to communicate with the victim.

In January 2022, FBI agents executed a search warrant at Elliott’s home.  They recovered his electronic devices, which contained numerous files of child pornography and communications with other online users in which Elliott discussed sexually exploiting children and shared and distributed child pornography. Elliott was arrested and admitted to possessing and distributing child pornography online and communicating with the 13-year-old victim in Missouri.

“Thanks to the victim’s bravery in coming forward to authorities to disclose his abuse at the hands of online predators like the defendant, the FBI was able to identify and arrest Raymond Elliott and stop his cycle of online exploitation,” U.S. Attorney Ison stated.

"The FBI prioritizes the protection of children from dangerous predators and is fully committed to investigating those who seek to harm the most vulnerable members of society,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “Those who make the unconscionable decision to victimize innocent children will be brought to justice. We would like to extend our appreciation to our wide network of law enforcement partners for their critical support. The FBI urges the public to report alleged crimes of child sexual or physical abuse by calling 1-800-CALLFBI (1-800-225-5324) or submitting tips online to http://tips.fbi.gov."

This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Diane Princ.  

DETROIT, MI - U.S. Attorney Dawn N. Ison announced today that the Eastern District of Michigan collected $68,224,759.35 in criminal and civil actions in Fiscal Year 2023. Of this amount, $45,879,094.11 was collected in criminal actions and $22,345,665.24 was collected in civil actions.

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

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violation of federal health, safety, civil rights or environmental laws. The office also resolved several parallel cases that involved significant civil and criminal penalties related to health care fraud.

In addition to collection of outstanding obligations, the Eastern District of Michigan seized assets valued at more than $67 million dollars and finalized the forfeiture of assets valued at approximately $34 million dollars. Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund may be used to restore funds to crime victims and for a variety of law enforcement purposes.

“Through the hard work and commitment of our team of dedicated attorneys and support professionals, we recovered more than $68 million dollars in Fiscal Year 2023.  Due to the tireless efforts of these extraordinary public servants, crime victims and taxpayers will recover funds owed to them as a result of criminal and civil violations perpetrated in this district. Our staff is a tireless advocate for victims of crime. We take actions to recover assets that have been transferred to third parties, as well negotiate for the liquidation of assets obtained by a defendant because of his or her involvement in criminal activity.”

DETROIT – What began as a delivery of drugs in a Sony PlayStation box led agents to a stash location in Novi where a drug organization stored more than 30 kilograms of fentanyl and over half a million dollars. Today, the girlfriend of the organization’s California based leader, who laundered the drug money and lived lavishly off the proceeds was sentenced to three years and six months in prison and ordered to forfeit her interest in a laundered home to the United States.

United States Attorney Dawn N. Ison announced the sentence and was joined in the announcement by Charles E. Miller, Special Agent in Charge of the Internal Revenue Service, and Orville O. Greene, Special Agent in Charge of the Drug Enforcement Administration, Detroit Field Division.

Teeauna White, 36, of Moreno Valley, California, conspired with her boyfriend Maurice McCoy to conceal his drug money by setting up multiple businesses and controlling access to the bank accounts. Members of McCoy’s drug organization deposited drug proceeds into the bank accounts and delivered hundreds of thousands of dollars in bulk cash to McCoy and White. Together, McCoy and White reaped the benefits of the drug trade, using the money to fund their lifestyle. McCoy purchased an expensive Porsche Panamera and White bought a Bentley and Mercedes Benz. They used one of McCoy’s relatives to try to conceal their purchase of a home worth more than half a million dollars in Southern California. McCoy and White paid off their house in less than six months by funneling cash from drug sales through a labyrinth of bank accounts. They also used the drug money to buy expensive jewelry, including diamond and gold pendants for themselves and some members of McCoy’s drug organization. White often bragged on social media, posting pictures of her cars, jewelry, and lavish vacations with McCoy. White knew McCoy, who had served 10 years in federal prison for a prior drug trafficking conviction, was a convicted felon when she helped him launder drug money.

DEA and IRS led a drug and money laundering investigation and discovered drug distribution hubs in multiple cities across the U.S., including Novi, Michigan, where the organization stored more than 30 kilograms of fentanyl and over half a million dollars that DEA seized. At the time, it was the largest fentanyl seizure in Michigan and one of the largest in the U.S. The seizure was the result of agents’ creative investigative work, after they traced a UPC code off a Sony PlayStation box that was used to deliver heroin to a drug customer. That UPC code led to the Novi condominium where the PlayStation was active. Agents identified couriers who crisscrossed the U.S. delivering kilograms, transporting bulk currency, or laundering money, leading to multiple arrests and additional seizures in Indianapolis and Baltimore, where the organization also operated.

Of the 18 defendants charged, only White and Robin Herndon, a relative who she and McCoy used to purchase their home, went to trial. The remaining defendants, including couriers, large-scale drug customers, and McCoy himself, pleaded guilty. White and Herndon were convicted by a jury in July 2023. After the verdict, White took to social media to threaten the witnesses who had testified at trial. Her bond was immediately revoked, and she spent nearly four months in jail awaiting her sentence.

“Money launderers are an essential, but often unseen, part of the drug trade. Their relative anonymity allows money launderers to profit handsomely from the drug business, while avoiding the more significant risks of drug dealing. But they help drug dealers access and enjoy the proceeds of a crime that poisons our communities. Money launderers should be held accountable and punished commensurately with the importance of their role in drug trafficking, and we will do our part by ensuring they are aggressively prosecuted,” stated United States Attorney Dawn Ison.

“IRS Criminal Investigation special agents work tirelessly in narcotics investigations to follow the money so we can financially disrupt and dismantle major drug trafficking organizations,” said Charles Miller IRS Criminal Investigation, Special Agent in Charge, Detroit Field Office. “We will not only seek to hold those accountable who traffic in drugs, but also those who help them hide or launder the illicit proceeds of these crimes that are destroying our communities.  We are proud to work hand-in-hand with our law enforcement partners to bring these criminals to justice.”

“As drug traffickers and money launderers become more sophisticated and creative in the way in which they ply their trade, the DEA and our partners will endeavor to work smarter to hold them accountable.  People who knowingly conspire to launder drug proceeds will also be held accountable for the harm they inflict on our communities” said Special Agent in Charge Orville O. Greene.

The investigation of the case was conducted by the Organized Crime Drug Enforcement (OCDETF) Southeast Regional Strike Force. Assistant United States Attorneys Andrea Hutting, Craig Wininger, and Gjon Juncaj prosecuted the case for the United States.

A federal jury convicted Dr. Lawrence Mark Sherman, 74, of Shelby Township, on all counts of a 20-count indictment charging him with conspiracy to unlawfully distribute prescription opioids, including Oxycodone, Oxymorphone, and Oxycodone-Acetaminophen (Percocet), and 19 counts of illegal distribution of Oxycodone, U.S. Attorney Dawn N. Ison announced today.

Ison was joined in the announcement by Special Agent in Charge Cheyvorea Gibson, Federal Bureau of Investigation, Detroit Division, and Special Agent in Charge Mario Pinto of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office.

Dr. Sherman was convicted for his involvement in the operation of Tranquility Wellness Center, Inc., from March 2020 through June 2021, which operated first in Dearborn and later in Saint Clair Shores. Dr. Sherman was the only prescribing doctor who primarily prescribed Oxycodone 30mg, Oxymorphone 40mg, and Oxycodone-Acetaminophen 10-325 mg (Percocet), three of the most addictive prescription opioids. These prescription drugs are also among the most highly diverted prescription opioids due to their high street value. The other defendants charged in the case, including clinic operators Janeice Burrell and Angelo Smith, clinic employees Akeyla Bell and Carmen Gilbreth, and Peter Burrell previously pleaded guilty.

According to the evidence presented at trial, Dr. Sherman conspired with the other defendants to illegally authorize more than 3,000 opioid prescriptions for supposed “patients” who did not have a legitimate medical need for the drugs, and who were typically brought to the clinic by “patient recruiters/marketers.” Tranquility Wellness Center accepted only cash and charged patients, not based on the service provided, but instead based on the quantity, type, and dosage of prescription opioids that the “patient” received. The clinic also charged cash for the creation of fraudulent medical records for the supposed “patients.” Janeice Burrell and Angelo Smith paid Dr. Sherman in cash or via peer-to-peer money transfers, and only paid him if he wrote controlled substance prescriptions, not based on any supposed “medical care.” During the trial the jury heard testimony that Doctor Sherman issued more than 300,000 dosage units of Schedule II opioid prescriptions during the course of the conspiracy. These controlled substances had a street value in excess of $6.3 million.

While the unlawful controlled substance prescriptions were paid for in cash, both controlled and non-controlled “maintenance” medications were billed to health care benefit programs by pharmacies. Billings to the Medicare and Medicaid programs for medically unnecessary prescription drug medications and maintenance medications during this conspiracy exceeded $500,000.

“My office remains committed to doing what it can to hold doctors and other health care professionals accountable when they illegally feed the opioid epidemic by writing illegal opioid prescriptions, rather than helping to address the terrible impact the opioid epidemic has had on our community,” stated U.S. Attorney Ison. “We will pursue drug dealers whether they are peddling drugs on the street or while wearing white coats in a medical office.”

"Today's verdict should be a stern warning to any fraudulent medical providers who are willing to engage in illegal prescription drug and opioid distribution schemes," said Special Agent in Charge, Cheyvoryea Gibson of the FBI in Michigan. “By prescribing medically unnecessary medications, the defendant put vulnerable community members at risk and contributed to inflated health care costs. The FBI, along with our law enforcement partners, continue to work collaboratively to bring those to justice who seek to peddle poisons into our state and defraud healthcare systems.”

“Medical providers who facilitate the unlawful distribution of prescription controlled substances place their patients, and others, at risk of harm and also undermine the critical public health efforts underway to address the opioid epidemic,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG remains committed to working together with our law enforcement partners to identify and investigate those medical providers who unlawfully engage in overprescribing these medications.”

The maximum penalty for the drug conspiracy is twenty years’ imprisonment. The maximum penalty for the substantive counts of unlawful distribution of Schedule II controlled substances is 20 years on each count. The trial, which began on November 15, 2023, was conducted before United States District Judge Judith Levy. Sherman is scheduled to be sentenced on April 17, 2024.

The case was investigated by special agents and task force officers of the Federal Bureau of Investigation and the Department of Health and Human Services-Office of the Inspector General and prosecuted by Assistant United States Attorneys Andrew J. Lievense and Alison Furtaw.

The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that are contributing to the nation’s opioid crisis.

DETROIT – After a six-week trial in federal court, a jury convicted three high-ranking leaders of the Almighty Vice Lords Nation of RICO conspiracy, United States Attorney Dawn N. Ison announced today. Ison was joined in the announcement by James Deir, Special Agent in Charge of the Detroit Field Office of the Alcohol, Tobacco, Firearms and Explosives (ATF).

Evidence at trial proved the Almighty Vice Lords Nation (AVLN) was a sprawling criminal enterprise which committed acts of violence, drug dealing, and other crimes, across the country.  The AVLN enterprise began in Chicago, which is still considered its headquarters. The AVLN are divided into different branches, each with their own leadership that answers to a “board” in Chicago. The trial involved leaders of two branches, the Mafia Insane Vice Lords, and the Insane Vice Lords. The jury convicted:

• Martin Murff, 54, of Chicago, who had the title of “Prince” and was the highest-ranked Mafia Insane Vice Lords in the country and a member of the national leadership of the AVLN;
• Kevin Fordham, 53, of Detroit, another “Prince,” who was the highest-ranked Insane Vice Lord in Michigan and a member of the national leadership of the AVLN; and,
• Eddie Reid, 39, of Detroit, a “Chief” and the highest ranked Mafia Insane Vice Lord in Michigan.

The evidence at trial showed that these leaders worked together under the umbrella of the Almighty Vice Lord Nation and agreed that they or their enterprise members would commit acts of racketeering, including murder, narcotics trafficking, and witness intimidation. In one seizure alone, law enforcement intercepted over 2.5 kilograms of pure fentanyl destined for Detroit.

“The Almighty Vice Lords Nation is a criminal enterprise that followed its own laws rather than the laws of the United States. Through the hard work of this investigation and trial, we have said no more; we will not tolerate the violence and criminality the Vice Lords stand for and perpetuate,” United States Attorney Dawn N. Ison said. “With this verdict, we have dismantled the leadership of multiple branches of this criminal organization and disrupted their ability to operate in our neighborhoods.”

“The Almighty Vice Lord Nation is a shell of what it was. Today’s verdict against Martin Murff, Eddie Reid, and Kevin Fordham sends a strong message to gangs across the Detroit - Chicago metropolitan areas….cease and desist with poisoning and terrorizing our communities with senseless gun violence and drug trafficking. If you do not, serious consequences will come,” said, ATF Special Agent in Charge James Deir “These defendants posed as legitimate community members while overseeing an interstate criminal enterprise that killed and maimed people in both Michigan and Illinois. Their flagrant assault on our way of life ends today with this just verdict.”

The jury acquitted Kenneth Johnson, who will be returned to the Michigan Department of Corrections to serve a lengthy sentence for an unrelated conviction.

More than 20 other members of the AVLN were indicted as a result of this investigation and await trial in federal court.

DETROIT – On Friday afternoon, following a six-week trial, a federal jury in the Eastern District of Michigan convicted a leader of the Seven Mile Bloods Street Gang of 22 counts, including racketeering conspiracy, murder, attempted murder, and related firearms offenses, United States Attorney Dawn N. Ison announced today.

Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI’s Detroit Division.

Billy Arnold, age 37, was convicted of RICO Conspiracy, two counts of Murder in Aid of Racketeering, 10 counts of Attempted Murder in Aid of Racketeering, and multiple firearm counts.

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

Evidence presented at trial showed an ongoing gang war between the Seven Mile Bloods and an alliance of other gangs operating on Detroit’s east side stemming from a murder that Arnold committed in July 2014.  Arnold, who was on parole at the time, encountered two rival gang members during a meeting at a parole office in Detroit. After the meeting, Arnold waited outside the parole office until the rival gang member left. Arnold followed the rival gang members and their two companions a short distance before opening fire, killing one of the victims and seriously injuring another.  Following the murder, the Seven Mile Bloods and rival gangs began violently attacking one another and posted respective “hit lists” on social media.  The violence reached a boiling point in 2015 when during a one-month span, Arnold murdered one rival gang member, and shot numerous others. One of Arnold’s victims, who was shot while taking his two young daughters for a walk, was paralyzed as a result of the shooting. Arnold shot another victim, who was only 15 years old at the time of the shooting, while the victim was at his first day of work at a banquet hall in Roseville. Arnold shot the victim while attempting to murder a rival gang member who was standing near the victim in a parking lot. The 15-year-old victim and the rival gang member survived the shooting. On September 26, 2015, Arnold and another Seven Mile Blood member were arrested following a high-speed chase in Detroit. Following the chase, law enforcement recovered an assault rifle from the vehicle that was used in one murder and several other shootings.

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

Arnold is the 20th member or associate of the Seven Mile Bloods to have been convicted as a result of the investigation.

This case was the result of a collaborative effort by multiple law enforcement agencies.  Investigators were able to bring together separate probes into various members of this organization and its criminal activities into one encompassing investigation. Partners include the Detroit Police Department Gang Intelligence Unit, the FBI Violent Gang Task Force, which consists of representatives of Detroit Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, Michigan Department of Corrections and Michigan State Police, with the cooperation of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Drug Enforcement Administration (DEA). Also assisting in the investigation were the Charleston and South Charleston Police Departments in West Virginia.

“This guilty verdict is the final chapter in the case of the Seven Mile Bloods - a gang who for years terrorized the residents living on the east of Detroit,” said U.S. Attorney Ison. “The case against SMB, and against Billy Arnold in particular, is an example of what can happen when we focus on those few responsible for so much violence. With today’s verdict, and with the sentence required by law for Billy Arnold, the men and women in our community who were victimized by this group will receive some measure of justice. And with today’s verdict, and with the help of the vast majority of the residents of this neighborhood who want peace, we can once and for all put the terrible carnage of the “Red Zone” behind us.”

“While the damage and violence caused by Mr. Arnold and members of SMB cannot be undone, our hope is that this final sentence brings a sense of justice to all those impacted,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. "We would like to commend our law enforcement partners on the Detroit Violent Gang Task Force (VGTF) for their relentless efforts in working this case for nearly a decade. No matter how long it takes, the FBI remains committed to dismantling gang networks and removing violent offenders from our streets to ensure a safe environment for all Michigan residents."

Judge Sean F. Cox presided over the trial and will sentence Arnold on April 10, 2024. Arnold faces mandatory life imprisonment.