Eastern District of Michigan

BAY CITY – A federal grand jury indicted Andrew Semenchuk and Adam Ball, former owners and executives of Surveying Solutions, Inc. and Jeffrey Bartlett, a current owner and executive of Surveying Solutions, Inc.,  on charges of wire fraud, conspiracy to commit wire fraud, and conspiracy to defraud the United States, announced United States Attorney Dawn N. Ison.  The indictment arises out of false statements made to the United States Department of Transportation (USDOT) and the Michigan Department of Transportation (MDOT) in the process of applying for and receiving highway construction and surveying contracts.

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 Andrea M. Kropf, Special Agent-in-Charge, Department of Transportation Office of Inspector General, Midwestern Region.

Indicted were Andrew Semenchuk, age 51, of Rives Junction, Michigan, Adam Ball, age 46, of Saginaw, Michigan, and Jeffrey Bartlett, age 51, of Standish, Michigan.  All were charged in the indictment as co-conspirators in one count of conspiracy to commit wire fraud, one count of conspiracy to defraud the United States, and 13 counts of wire fraud.  

According to the indictment, Andrew Semenchuk, Adam Ball, and Jeffrey Bartlett were owners and employees of Survey Solutions, Inc., a company that was awarded millions of dollars in construction and surveying contracts by MDOT. Those contracts were funded almost entirely by federal funds through USDOT. The indictment alleges that statements made by Semenchuk, Ball, and Bartlett to MDOT and USDOT included false claims that SSI qualified as a disadvantaged business which tricked MDOT into granting SSI contract preferences. The indictment further alleges that Semenchuk, Ball, and Bartlett also reported false and fraudulent employee costs, and false and fraudulent equipment, real estate, and IT expenses which artificially inflated payments MDOT made to SSI. 

“Every year USDOT entrusts millions of taxpayer dollars into programs intended to support and improve our community’s infrastructure, including the maintenance of our highways system. When the integrity of USDOT’s contracting system is damaged by individuals who cheat to obtain contracts and fraudulently inflate the expenses and costs they claim for reimbursement, the public trust is broken, and taxpayer funds are squandered. The charges in this indictment serve as a promise to the taxpaying public that such violations of the public trust will not be tolerated,” said United States Attorney Dawn N. Ison. 

"The defendants' alleged actions to personally profit through their fraud scheme, which created an unfair competitive market for other businesses to earn contracts, is particularly disturbing," said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. "The FBI is uniquely poised to investigate fraud cases with financial intricacies like those documented in this case. We commend our partner law enforcement agencies for their assistance in taking strong action against those who seek to corrupt the integrity and fair administration of government programs."

“The indictment announced today demonstrates our commitment to working with our law enforcement and prosecutorial partners to identify and put an end to this extensive fraud scheme,” stated Andrea M. Kropf, Special Agent-in-Charge, Department of Transportation Office of Inspector General, Midwestern Region. “We will continue to hold accountable those who knowingly defraud the Federal government and put taxpayer dollars at risk.”

An indictment is merely an accusation and is not evidence of guilt.  The defendants are presumed innocent unless and until proven guilty in a court of law.  If convicted, Bartlett, Semenchuk, and Ball face up to 20 years in prison for conspiracy to commit wire fraud, 5 years in prison for conspiracy to defraud the United States, and 20 years in prison for each of the 13 counts of wire fraud. If convicted, a federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

This investigation was conducted by the Federal Bureau of Investigation and the United States Department of Transportation Office of Inspector General.

DETROIT – A Detroit man was sentenced yesterday to 10 years in prison for dealing dangerous drugs while on pretrial release for another drug and firearm offense pending in state court, United States Attorney Dawn N. Ison announced today.

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

Rickey Butler, age 40, of Detroit, Michigan, was sentenced by United States District Judge Denise Page Hood.

According to court documents and statements made in court, on March 4, 2022, Butler—who was then on a GPS tether for controlled substance and weapons offenses—possessed with the intent to distribute fentanyl, cocaine, and methamphetamine. Butler also possessed a Glock firearm, which he used to protect the narcotics. Butler admitted to police that he had been selling drugs for approximately eight years before he was apprehended in this case.  

“All too often,  guns and drugs go hand in hand—and both are causing far too many deaths in our community,” said U.S. Attorney Ison. “We are committed to working with our law enforcement partners to remove illegals guns,  drug dealers, and other drivers of violent crime out of our neighborhoods.”

“This sentencing shows the unwavering commitment by the FBI and our law enforcement partners to remove traffickers who conspire to distribute harmful drugs in our communities,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “We will continue to relentlessly pursue those involved in narcotics trafficking to safeguard Michigan’s streets and communities.”

This case was investigated by the Federal Bureau of Investigation in conjunction with the Livonia Police Department and Detroit Police Department. The case was prosecuted by Assistant U.S. Attorney Barbara Lanning.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

DETROIT -- A Southfield man pleaded guilty today to conspiracy to commit wire fraud, in connection with an extensive, multi-million-dollar cell phone upgrade fraud scheme, announced United States Attorney Dawn N. Ison.

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

Delano Bush, 34, entered his guilty plea this afternoon, before United States District Judge Terrence G. Berg.

According to court records, beginning at least as early as June 2017 and continuing through at least September 2019, the defendant and others fraudulently obtained the personally identifiable information (PII) of other people to  purchase cellular devices on credit, by charging those devices to accounts opened in the names of ID-theft victims, without the victims’ authorization.  In total, the scheme involved more than 26,000 fraudulent transactions and resulted in a loss of more than $28,000,000.  

“Today’s guilty plea marks a significant event in a years-long investigation and prosecution. As this case shows, identity theft is constantly evolving, and fraudsters continue to find new ways to use and abuse their victims’ personal information,” said U.S. Attorney Ison.  “My office remains committing to unraveling sophisticated fraud schemes such as this one, and to bringing the perpetrators of these schemes to justice.”

“Cooperation between federal, state and local partners is essential to successfully investigating and prosecuting these complex fraud operations,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “By putting a stop to these schemes, HSI special agents and our partners help protect the livelihoods of hard-working Americans both here in Michigan and across the country.”

Bush faces a statutory maximum penalty of 20 years imprisonment on the charge of conspiracy to commit wire fraud.  Bush’s plea agreement also requires him to pay restitution to AT&T in the minimum amount of $1,500,000.  Sentencing is set for April 25, 2024.

The case was investigated by agents from Homeland Security Investigations (HSI), with assistance from the Social Security Administration Office of the Inspector General (SSA-OIG), the Department of Labor Office of the Inspector General (DOL-OIG), the Detroit Metro Airport Police Department, the Taylor Police Department, and the Wayne State University Police Department.  The case is being prosecuted by Assistant U.S. Attorney Ryan A. Particka.

DETROIT - Commerce Township resident Ryan T. Carruthers was sentenced to two years and three months in prison yesterday for defrauding the Small Business Administration and various banks out of approximately $851,000 as part of a pandemic relief fraud scheme, announced United States Attorney Dawn N. Ison. Carruthers was also ordered to pay $851,963 in restitution to his victims.

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

Ryan Carruthers, 42, pleaded guilty in August 2023 to one count of wire fraud before United States District Judge Paul D. Borman. The guilty plea arose out of Carruthers’ participation in a wide-ranging scheme to obtain loans to which he was not entitled from two pandemic relief programs overseen by the Small Business Administration (SBA). 

According to plea documents, in approximately April 2020, Carruthers began to submit electronic applications for pandemic relief loans in the names of various business entities he purported to own and control. Between April 2020 and April 2021, Carruthers submitted numerous loan applications through the Paycheck Protection Program (PPP), which was an SBA-administered program that provided forgivable loans to businesses to encourage them to keep workers employed during the pandemic. Carruthers also submitted a loan application under the SBA’s Economic Injury Disaster Loan Program (EIDL), which was a program that provided low-interest financing to businesses adversely affected by the pandemic. The PPP loan applications were submitted to various participating lenders of the program, while the EIDL loan application went directly to the SBA.

According to the plea documents, the loan applications contained numerous material misrepresentations and false statements. Carruthers’s business entities were shells that existed on paper only; they had no revenue, employees, or ongoing operations of any sort. However, Carruthers claimed in his applications that each of these entities had between three and 15 employees. The average monthly payroll amounts included in the applications were fictitious, as were representations about how the money would be spent. According to Court documents, Carruthers spent the money on personal investments and expenses, including the acquisition of personal watercraft.

“Ryan Carruthers stole nearly a million dollars from programs intended to help our economy stay afloat during an unprecedented public health emergency,” said U.S. Attorney Ison.  “This prosecution reflects the seriousness with which my office takes this sort of fraud, and we will continue to pursue accountability for all of those who enrich themselves at the public’s expense.”

“This fraud goes against everything our community stands for,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “Let this case be a warning to others who used these funds to line their own pockets. Our agents and partners are wholly committed to investigating these loans and ensuring that justice is served.”

The case was prosecuted by Assistant United States Attorney John K. Neal. The investigation was conducted by Homeland Security Investigations with the assistance of the Small Business Administration Office of Inspector General.

DETROIT – A Southfield woman pleaded guilty today to wire fraud arising out of a scheme to defraud the State of Michigan out of more than $300,000 in pandemic-related unemployment insurance benefits, announced United States Attorney Dawn N. Ison.

Ison was joined in the announcement by Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General, and Special Agent in Charge John Marengo of the United States Secret Service’s Detroit Field Office.   

Katrina Maddox, 47, entered her guilty plea this afternoon, before United States District Judge Terrence G. Berg. 

According to court records, beginning as early as April 2020 and continuing through at least September 2021, Maddox filed approximately 65 fraudulent unemployment insurance (UI) claims seeking pandemic unemployment assistance (PUA) benefits.  Maddox submitted the fraudulent claims in the names of multiple individuals, using their Social Security Numbers and other personal identifying information, without those individuals’ authorization or consent.  The fraudulent UI benefits were paid out via debit cards, which Maddox then used to repeatedly withdraw the funds from ATMs.

United States Attorney Ison stated, “This case reflects our ongoing commitment to prosecute those who took advantage of the Covid-19 pandemic by stealing funds intended for those in need.  My office will remain vigilant in the pursuit of those who cheat the government and their fellow citizens.” 

“Katrina Maddox engaged in an unemployment insurance fraud scheme targeted at the Michigan Unemployment Insurance Agency by filing false UI claims in the names of identity theft victims to obtain debit cards containing stolen UI benefits. We will continue to work with our law enforcement partners to safeguard the UI system from those who exploit these benefit programs,” said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General.

“We are thankful to the Department of Labor and the US Attorney’s Office for partnering with us in the investigation and prosecution of this case.  We will continue to work with our partners to protect our nation’s financial infrastructure.  We will continue to work with our federal and state partners to bring these perpetrators to justice,” said Special Agent in Charge Marengo.

Maddox faces a statutory maximum penalty of 20 years imprisonment on the charge of wire fraud.  Per the terms of her plea agreement, Maddox will also be required to pay restitution to the victim states in the total amount of $311,440.  Sentencing is set for April 25, 2024 at 2pm.

This case was investigated by the U.S. Department of Labor Office of the Inspector General and the U.S. Secret Service.  The case is being prosecuted by Assistant United States Attorneys Sarah Youngblood and Ryan A. Particka.   

DETROIT – The United States Attorney’s Office for the Eastern District of Michigan has reached a resolution with Stepping Stones Counseling Center PLLC, a local therapy practice, regarding a disability discrimination complaint. The Complainant, who is deaf and whose primary language is American Sign Language (ASL), alleged the practice initially dismissed her as a patient and later failed to provide her with equal access to its services because of her need for ASL interpretation services, in violation of the Americans with Disabilities Act (ADA).

Denying an individual the opportunity to participate in or benefit from services offered by a place of public accommodation, such as a counseling office, is one form of discrimination prohibited by the ADA. The ADA requires places of public accommodation to ensure effective communication with all individuals, regardless of any disabilities they may have, who seek to participate in or benefit from their services. With very limited exceptions, the ADA requires places of public accommodation to take necessary measures to ensure that communication with its customers is effective—this can include providing auxiliary aids and services such as certified ASL interpreters, at no cost to the customer.

“It is imperative that individuals with disabilities do not encounter unnecessary barriers to health care resources, especially mental health services,” said U.S. Attorney Dawn N. Ison. “Effective communication is necessary to provide a supportive and constructive counseling environment for individuals who are deaf or hard of hearing, and my office is committed to ensuring that such communication is provided as required by the law.”

Stepping Stones Counseling Center agreed to update its policies and training materials to ensure compliance with the ADA and to make a compensatory payment to the Complainant. In addition, the counseling center must train its staff on the ADA and develop and implement an anti-discrimination policy.

The investigation was led by Assistant U.S. Attorneys Michael El-Zein and Shannon Ackenhausen, of the Civil Rights Unit of the U.S. Attorney’s Office.

The full and fair enforcement of the ADA is a priority of the U.S. Attorney’s Office. The Civil Rights Unit 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. Information about the Justice Department’s Barrier-Free Health Care Initiative to ensure that people who have disabilities, including those who are deaf or hard of hearing, have equal access to medical services is available at www.ada.gov/usao-agreements.htm.

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 – Albert Morrison was sentenced today to 45 months in federal prison after pleading guilty to accepting bribes from a local contractor and tax evasion, 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, Criminal Investigation Special Agent in Charge Charles Miller, Detroit Field Office, and John Woolley, Special Agent in Charge of the Department of Education, Office of Inspector General.

Morrison, age 62, was sentenced after pleading guilty before the Honorable Laurie Michelson to Conspiracy to Commit Federal Program Bribery from 2014 through 2018 and Tax Evasion.

Morrison was the elected President of the Madison District Public Schools Board of Education from 2012 through 2018.  While Morrison was President, John David was one of the owners of a building maintenance and reconstruction company, Emergency Restoration that was awarded over $3.1 million maintenance and construction projects in the Madison District Public Schools.  David, who was a long-time friend of Morrison, paid Morrison more than $561,000 in order to secure the work for the Madison District. Morrison spent the money from David on personal luxuries such as vacations in Florida and a boat slip.

To keep the payments secret from the school board and the community, Morrison denied having any financial ties to David or Emergency Restoration when publicly confronted at a Madison District school board meeting.  Morrison also failed to disclose to State of Michigan auditors the payments he received from David.

Morrison did not declare to the IRS David’s payments as income in 2014, 2015, 2016, 2017, or 2018.  By not declaring the payments to the IRS, Morrison avoided paying approximately $118,200 in taxes. 

“Today’s sentence underscores our continued insistence that our trusted public officials hold themselves to the highest standards of integrity and honesty. It sends a clear message that when public officials break that trust, they will be held accountable,” said United States Attorney Dawn N. Ison.  “This sentence ensures that school officials will put the interests of our children first and that those who accept bribes and evade paying taxes will answer for their crimes.”

“Today, Mr. Morrison is being held accountable for the crimes he committed as president of the Madison District Public School Board,” said Cheyvoryea, Special Agent in Charge of the FBI in Michigan. “We thank the IRS and Department of Education – Office of Inspector General for working alongside the FBI to investigate these allegations and expose Mr. Morrison’s corruption.”

“Today’s sentence sends a clear message that financial fraud by our public officials will not be tolerated, especially when it’s at the expense of the children in our communities,” said Internal Revenue Service – Criminal Investigation Special Agent in Charge Charles Miller, Detroit Field Office. “IRS-CI will continue to work with our federal and local partners to safeguard the financial future of our communities and our nation’s tax system.”

“Mr. Morrison abused his position of trust for personal gain, and with today’s action, will now be held accountable for cheating those he promised to serve – Madison’s school children and their families,” said John Woolley, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Midwestern Regional Office.  "The OIG will continue to work with our law enforcement partners to aggressively pursue those who misappropriate education funds for their own selfish purposes. Our nation’s students and taxpayers deserve nothing less.”

The investigation of this case was conducted by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the Department of Education. It was prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, Karen Reynolds, and Gjon Juncaj.

DETROIT – A former Wayne County Roads Division employee was sentenced to 32 months in federal prison today for conspiring to defraud the county out of over $2.3 million, United States Attorney Dawn N. Ison announced.  

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

Kevin Gunn, 64, of West Bloomfield, pleaded guilty in January 2023. Gunn and fellow Wayne County employee John L. Gibson of Detroit 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. 

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 solicited 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 led to the uncovering of 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 purchase 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 only the items 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 bought 596 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 underscores our relentless demand for the highest standards of integrity and honesty in our public servants. The hardworking citizens of Wayne County deserve a government free of public officials who elevate their greed over the best interests of the public.”      

“Mr. Gunn could have served the citizens of Wayne County by being honest and forthright when performing his job.  Instead, he chose to betray the public trust by stealing for his own personal gain. This case sends an important message that this conduct will never be accepted in Wayne County,” said Prosecutor Kym Worthy.

"The alleged misconduct by Mr. Gunn 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. 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 – A federal jury convicted Anthony Roy Milligan, Jr., on drug conspiracy charges, United States Attorney Dawn N. Ison announced today. This conviction concluded a four-day trial held in Detroit before U.S. District Judge Mark A. Goldsmith.

Ison was joined in the announcement by Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration, Detroit Division, and Rodney Hopkins, U.S. Postal Inspector in Charge, U.S. Postal Inspection Service, Detroit Division.

Anthony Milligan, 37, formerly of Pontiac, was convicted of conspiracy to distribute and possess with intent to distribute more than 1 kilogram of heroin and more than 500 grams of methamphetamine. Milligan was also convicted of possession of more than 100 grams of heroin with intent to distribute. Evidence at trial showed that Milligan sent packages of heroin and methamphetamine through the U.S. mail to his network of distributors across the county. The United States Postal Inspection Service and the Drug Enforcement Administration intercepted several of those packages, and traced them back to Milligan, a previously convicted drug dealer.

“Our office will vigorously pursue drug traffickers who traffic in dangerous drugs like heroin and methamphetamine.” stated United States Attorney Dawn N. Ison. “This verdict is a result of outstanding teamwork between the U.S. Postal Service and the Drug Enforcement Administration.”

“This verdict should also serve as a reminder to those who abuse our community by peddling dangerous narcotics – law enforcement will find you and bring you to justice,” said DEA Special Agent in Charge Greene.

“The conviction of Mr. Milligan, Jr., is another example of the commitment the U.S. Postal Inspection Service and our law enforcement partners have in identifying, disrupting, and arresting those individuals who attempt to distribute illicit drugs through the U.S. Mail," said Rodney Hopkins, Inspector in Charge of the U.S Postal Inspection Service's Detroit Division. "We will continue to pursue those drug traffickers who attempt to exploit the distribution channels of the Postal Service and bring harm to our employees and the community. I would like to thank the Detroit Drug Enforcement Agency Field Office and the U.S. Attorney’s Office for the Eastern District of Michigan for their persistence and dedication in this investigation.”

Given the type and quantity of drugs involved and because he is a repeat drug-trafficking offender, Milligan 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 and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorneys Robert White and Thomas Franzinger.

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 - Hasna Bashir Iwas, 62, of New Baltimore, who owned and operated the former Beacon Pointe Pharmacy in Grosse Pointe Park, was convicted last week by a federal jury on 26 charges related to the unlawful distribution of Schedule II, III, IV and V prescription drug-controlled substances.  The verdict was announced by 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.

The charges resulted from the defendant’s operation of Beacon Pointe Pharmacy, in Grosse Pointe Park, during the time period of 2013-2018.  Evidence at trial showed she engaged in several interrelated criminal schemes.  The defendant regularly filled forged prescriptions for controlled substances presented to her by one or two individuals.  The 1,291 forged prescriptions were presented in the names of over 50 different “patients.”  The defendant received over $640,000 in cash in exchange for filling the forged prescriptions.  Although the defendant initially insisted each of the individual patients was present in her pharmacy when the forged prescriptions were filled, evidence at trial showed that several of the patients were dead, in prison, or were actually never in the pharmacy at all.  

Video evidence revealed the defendant distributing controlled drugs to the pill dealers/forgers in prescription pill bottles without required labeling.  Without a label containing the pharmacy name, patient’s name, drug strength, quantity and directions for use, the pills could not be traced back to her pharmacy when they were sold on the street.  The defendant shredded the labels that should have been on the pill bottles.  

An audit of the defendant’s pharmacy showed massive shortages of controlled substances that left the pharmacy without any prescriptions at all.  Over 70,000 dosage units of Oxycodone 30mg and over 36,000 dosage units of Xanax 2mg were purchased, delivered to the pharmacy, and not dispensed under any prescription. 

Iwas is scheduled to be sentenced by United States District Judge Laurie Michelson on February 20, 2024, at 3:00 p.m. Iwas was convicted on one count of conspiracy to distribute controlled substances, and 25 individual counts of unlawful distribution of controlled substances.

After the conviction Judge Michelson remanded the defendant to custody pending sentencing.  

 “My office is dedicated to stemming the tide of opioid addiction and the terrible consequences to our families in the Eastern District,”  stated U.S. Attorney Ison. We will pursue these drug dealers whether they are distributing drugs in the streets or through a pharmacy.” 

“The conviction of Ms. Iwas exemplifies DEA’s determination to combat the diversion of prescription medication. Iwas abused her pharmacist license to enrich herself and in so doing, she knowingly fueled the deadly opioid epidemic currently gripping our nation,” said Orville Greene, Special Agent in Charge of the Detroit Field Office of the Drug Enforcement Administration.

"Medical professionals, and others engaged in the delivery of healthcare services, who exploit opioid addiction and facilitate the diversion of highly addictive medications for financial gain, undermine critical efforts to suppress and eliminate the opioid crisis throughout the country.” said Mario M. Pinto, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue working with our law enforcement partners to ensure that bad actors are held accountable for such egregious disregard for public safety.”

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 Attorneys Wayne F. Pratt and Jihan Williams

DETROIT – A Warren resident was sentenced today to 20 years in federal prison on charges of sexual exploitation of children and distribution of child pornography, announced United States Attorney Dawn N. Ison.

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

Sentenced was Amber Nicole Dunbar, 27.  Dunbar pleaded guilty in March before United States District Judge George Caram Steeh.

As part of her plea, Dunbar admitted that in August 2022 she created images of herself engaging in sexually explicit conduct with an infant.  She sent these images to another individual located in Tennessee, who was being investigated for child pornography charges.  This individual had caused numerous women to produce and send him child pornography.

Once agents in Michigan learned of this abuse, they swiftly executed a search warrant and Dunbar admitted to the abuse of the child. Further investigation revealed that Dunbar had also produced child pornography involving a five-year-old child.

“I am thankful for the agents who acted so quickly to save these children from continued abuse. This defendant not only engaged in unthinkable abuse of an infant, but also shared the abuse with someone else on the internet.  This sentence demonstrates our commitment to ensure that those who harm the most vulnerable in our community will pay a significant price for their actions. responsible,” said U.S. Attorney Ison.

"Ms. Dunbar's exploitation of her daughter and other victims is deplorable," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "While the harm the defendant inflicted on these innocent children cannot be undone, we hope this sentence brings a small sense of justice to all those impacted in this case. Protecting children from dangerous predators is a top priority for the FBI, and we remain fully committed to investigating criminals who take advantage of minors in this indefensible way. We continue to urge the public to report alleged crimes of child sexual and physical abuse by calling 1-800-CALLFBI (1-800-225-5324) or submitting tips online to http://tips.fbi.gov."

The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Christopher Rawsthorne. 

DETROIT - A Dearborn Heights resident pleaded guilty today to fraudulently obtaining approximately $1,082,600 in loans intended to help small businesses stay afloat during the Covid-19 pandemic. He further admitted to wiring a portion of the fraud proceeds to Turkey for the purchase of a condominium in Beirut, Lebanon, United States Attorney Dawn N. Ison announced today.

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

Wahid Makki, 61, entered pleas of guilty to one count of wire fraud and one count of international money laundering before United States District Judge Nancy G. Edmunds. The guilty pleas arose out of Makki’s’ participation in a scheme to obtain loans authorized by the CARES Act designed to assist small businesses experiencing financial disruption due to the COVID-19 pandemic.

According to the plea documents, the loan applications described above contained numerous material misrepresentations and false statements. Makki’s business entities were shells that existed on paper only; they had no revenue, employees, or ongoing operations of any sort. However, Makki’s applications represented that each of these entities had between three and 15 employees. The average monthly payroll amounts included in the applications were fictitious, as were representations about how the money would be spent.

In addition, Makki authorized the submission of electronic applications for pandemic relief loans in the names of various business entities Makki purported to own and control. Between April 2020 and April 2021, Makki caused the submission of 17 loan applications seeking funds pursuant to the Small Business Administration’s “Economic Injury Disaster Loan Program” (EIDL), which was a program that provided low-interest financing to businesses adversely affected by the pandemic.

Makki received approximately 1,082,600 in proceeds from the 10 loans that were actually funded as part of his scheme. Makki further admitted that he wired a portion of the loan proceeds to purchase a “sea view condo” in Beirut, Lebanon.

“This defendant stole money intended to keep our economy functioning and our workers employed during a national crisis, and then spent his ill-gotten gains on a luxury property overseas,” said U.S. Attorney Ison.  Today’s guilty plea is an important step in holding Mr. Makki accountable for his crimes.”

“While many people across the nation were struggling from the financial challenges caused by COVID-19, Mr. Makki used it as an opportunity to exploit pandemic relief programs for his own gain,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI is committed to disrupting schemes that defraud government-sponsored assistance programs by working with our committed law enforcement partners. We would like to express our gratitude to them for their assistance in this case."

Sentencing is set for February 6, 2024 before Judge Edmunds.

The case is being prosecuted by Assistant United States Attorney Philip A. Ross. The investigation was conducted by the FBI.

DETROIT - A former police officer with the Hamtramck Police Department pleaded guilty today to taking bribes from a towing company operator, United States Attorney Dawn N. Ison announced.

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

Michael Stout, 61, of St. Clair Shores, resigned from the Hamtramck Police Department in 2020.

But while he was working as a police officer there, Stout accepted bribes, including a vehicle and $1,500 in cash, from a towing company operator. In return, Stout provided information from the Michigan Law Enforcement Information Network (or LEIN), a restricted law enforcement database, to the towing company operator. For instance, when the towing company operator told Stout that he was worried that a police vehicle had been following him, Stout called an unwitting employee to search LEIN so Stout could provide the vehicle’s registration information to the towing company operator and thereby check whether it was a law enforcement vehicle.

Stout pleaded guilty to bribery concerning programs receiving federal funds, a violation of 18 U.S.C. § 666. This bribery charge carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000.  Stout is scheduled to be sentenced on February 29, 2024, at 1:30 pm before United States District Judge Matthew F. Leitman.

“The public needs the commitment of their police officers to uphold the rule of law, not to break it for their own financial gain. Today’s guilty plea underscores our commitment to ensure that officers who violate the public trust and accept bribes will answer for their crimes,” said U.S. Attorney Ison.

“Mr. Stout violated his oath to serve, and his misconduct was a betrayal of the trust placed upon him by the citizens of Hamtramck and his fellow officers,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “It is important to note that his actions do not represent the brave and exceptional work that our law enforcement officers perform daily. The FBI would like to thank Anne Moise, the Chief of Police in Hamtramck, for her department’s assistance throughout the investigation. The FBI is dedicated to holding corrupt police officers accountable and ensuring that the people of Michigan can have confidence in the integrity of law enforcement.”

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 Steven P. Cares.

DETROIT - A Farmington Hills clinic owner was sentenced to 7 years and 6 months in federal prison after having pleaded guilty to health care fraud and money laundering charges, announced United States Attorney Dawn N. Ison.

Joining Ison in the announcement were Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan, and Mario Pinto, Special Agent-In-Charge, United States Department of Health, and Human Services – Office of Inspector General.

Sentenced was Mohamed Kazkaz, 54.  Kazkaz was sentenced before United States District Judge Gershwin A. Drain in Detroit.  Kazkaz was also ordered to forfeit approximately $5.3 million as the gross proceeds of his unlawful conduct.

During his plea, Kazkaz admitted he owned and controlled Centre HRW, a purported psychotherapy agency in Farmington Hills, Michigan for the purpose of submitting false and fraudulent claims to Medicare, seeking reimbursement for psychotherapy services that were not provided or were otherwise not eligible for reimbursement and whose Medicare identification numbers were procured through kickbacks and bribes.

Kazkaz offered and provided kickbacks and bribes to Ziad Khalel, and others, as an inducement to refer Medicare beneficiaries to Centre for psychotherapy services, even though such services were medically unnecessary and were never rendered. Khalel would require the recruited Medicare beneficiaries to sign blank Centre sign-in sheets. Kazkaz and others, completed the sheets as if the patients had been provided psychotherapy services and relied upon them to support his fraudulent claims to Medicare, through Centre, for psychotherapy services that were never rendered.

In furtherance of the scheme, Kazkaz instructed employees to obtain information regarding the Medicare beneficiaries legitimate medical visits and or treatments to ensure Kazkaz did not submit a fraudulent claim for a psychotherapy appointment on the same date the beneficiary had a legitimate appointment with another medical provider.

Kazkaz admitted he submitted or caused the submission of approximately $11 million dollars in fraudulent claims to Medicare, and Medicare paid approximately $5.3 million dollars to Kazkaz as a result of the fraudulent submissions.

In furtherance of the conspiracy, Kazkaz would transfer the proceeds of the health care fraud scheme to various entities in an effort to conceal the proceeds. Specifically, on January 21, 2023, after his arraignment in this case, he transferred approximately $1,445,000 in a cashier’s check issued by a financial institution located in the Eastern District of Michigan to National Restaurant Chain #1 knowing the source of these funds was criminal proceeds from the health care fraud scheme.

“The actions of this defendant undermine the trust we place in our health care providers,” said United States Attorney Ison.  “We hope this prosecution sends a message that we will aggressively seek to hold individuals accountable who steal from federally funded programs, such as Medicare, which are meant to help those in need.”

“Medical providers and others who unlawfully benefit from the payment of kickbacks in exchange for patient referrals, as well as bill our federal health care programs for medically unnecessary and non-rendered services, waste valuable taxpayer dollars and erode the trust that we place in these individuals,” said Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).  “HHS-OIG remains committed to working with our law enforcement partners to identify and investigate those who defraud our federal health care system.”

"Whenever the integrity of our health care programs is compromised, it erodes the trust that patients place in providers and puts everyone at risk,” said Cheyvoryea Gibson, the Special Agent in Charge of the FBI in Michigan. "Health care fraud is not a victimless crime. Whenever false claims are submitted to our federal health care programs, everyone bears the cost through potentially higher insurance premiums, out-of-pocket expenses, and even reduced or lost benefits. The FBI remains committed to working with our law enforcement partners to ensure that those who attempt to personally profit through these false claims and money laundering schemes are held accountable.”

The case is being prosecuted by Assistant United States Attorneys Regina R. McCullough and Philip A. Ross. Assistant United States Attorney K. Craig Welkener, of the Money Laundering & Asset Recovery Unit is handling related forfeiture matters. The investigation is being conducted jointly by the FBI and HHS-OIG.

DETROIT – A Detroit man was sentenced today to 9 years in federal prison following his convictions for two attempted carjackings and one completed carjacking— including one where he fired an assault rifle at a teenager.

United States Attorney Dawn N. Ison announced the sentencing today and was joined in the announcement Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

According to court records, Gregory Horsley, 20, of Detroit, Michigan, committed the carjackings on May 14, 2021, in Beverly Hills, Michigan. During each offense, Horsley targeted strangers who were inside their vehicles near the intersection of Thirteen Mile Road and Evergreen. In the first carjacking, Horsley approached the 16-year-old victim as he was seated in his car. Horsley pulled out a loaded assault rifle and pointed it at the driver. As the teenager drove off, Horsley fired his weapon, striking the vehicle.

Horsley next approached a vehicle driven by a woman. Horsley brandished his firearm and ordered her out of the car. The victim fled the driver’s seat and Horsley entered her car. But he could not drive away because the victim had the key fob in her pocket.

Horsley exited that vehicle and approached a third driver. Horsley pointed his firearm at the male driver and ordered him out of the car. The driver complied. Horsley then took the keys and drove off in the car.  The carjacked vehicle was found a few days later. Horsley was identified by surveillance video and taken into custody at his home in Detroit.

“Those who seek to prey on motorists going about their business will continue to have our full attention, and we will not hesitate to pursue federal prosecution and significant penalties at our disposal,” stated U.S. Attorney Ison.

“The FBI is committed to leveraging its assets in collaboration with our local, state, and federal law enforcement partners to keep our communities safe from gun violence,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “We are proud of the cooperative work done by the FBI Oakland County Gang and Violent Crime Task Force. Michigan residents deserve to live in a state free from violent crime – we continue to request the public’s assistance to help us in this mission by reporting any suspicious or violent behavior to 1-800-CALLFBI (1-800-225-5324) or submitting tips online to http://tips.fbi.gov.”

The case was investigated by special agents of the FBI, the Beverly Hills Police Department, the Southfield Police Department, the Detroit Police Department, and handled by Assistant United States Attorneys Jeanine Brunson and Michael Taylor.

DETROIT – A Detroit man pleaded guilty yesterday to a felony charge of willfully and knowingly violating the terms of a United States Coast Guard Order to cease all commercial operation of his pleasure boat until properly licensed and inspected, announced United States Attorney Dawn N. Ison.

Ison was joined in the announcement by United States Coast Guard Captain Richard P. Armstrong, Captain of the Port, Detroit, and Acting Special Agent in Charge Josh Packer of the Coast Guard Investigative Service Central Field Office.   

Benjamin Michael Jones, 39, entered his guilty plea this afternoon, before United States District Judge Judith E. Levy. 

According to court records, in June of 2021, the Coast Guard issued a Captain of the Port Order to Jones, ordering him to cease all commercial operations until fully compliant with the applicable laws and regulations for carrying passengers for hire.  On or about August 10, 2021, Jones willfully and knowingly violated the terms of that Order by operating his 40’ boat, known as “PWR TOWER,” on Lake St. Clair, while carrying passengers for hire, and without having complied with the applicable Coast Guard licensing regulations and inspection requirements.  During that illegal voyage, the “PWR TOWER” caught fire with its passengers on board.  Jones’s passengers were rescued, and the “PWR TOWER” was towed to shore by the Coast Guard.

“The maritime laws and regulations are designed to ensure that the commercial operation of vessels on the waters of the United States is conducted safely.  My office will continue to prosecute people like Jones, who knowingly and willfully violate the maritime laws and regulations and endanger the safety of others,” U.S. Attorney Ison said. 

"The guilty plea in this incident highlights the Coast Guard’s unwavering dedication to maintaining maritime safety and cracking down on illegal charter operations,” said United States Coast Guard Captain Richard P. Armstrong, Captain of the Port, Detroit.  “Every action we take is aimed at safeguarding the boating public from potential hazards. This case serves as a resounding reminder that we will continue to uphold maritime laws, ensuring that our waterways remain safe and enjoyable for all.”

“Mr. Jones’ repeated actions demonstrated blatant disregard for the Coast Guard’s policies and authority, which placed unsuspecting passengers at risk. This guilty plea demonstrates the aggressive posture the Coast Guard Investigative Service and U.S. Attorney’s Office have taken in the prosecution of illegal charter operations,” said Josh Packer, Acting Special Agent in Charge, Coast Guard Investigative Service, Central Field Office.

The sentencing hearing is set for February 27, 2024 at 2:30pm, at which Jones faces a statutory maximum penalty of 6 years imprisonment. 

This case was investigated by the U.S. Coast Guard and the Coast Guard Investigative Service.  The case is being prosecuted by Assistant United States Attorney Timothy J. Wyse and Special Assistant United States Attorney Corinne M. Lambert.   

DETROIT –Lansing resident and member of the violent Jackson street gang the “Thorough Bred Family,” Dominque Faulkner, 32, pleaded guilty today to conspiracy to distribute over 400 grams of fentanyl, United States Attorney Dawn N. Ison announced today.

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, Colonel James F. Grady, II, Michigan State Police, Director Elmer J. Hitt, Jackson Police and Fire Services, and Sheriff Gary Schuette, Jackson County Sheriff’s Department.

In his plea, Faulkner admitted that he and his co-conspirators distributed large amounts of fentanyl in Jackson. According to court documents, the fentanyl sold by the gang had a unique texture and coloring. Unlike most fentanyl, typically sold in powder form, TBF’s fentanyl was sold in a rock-like crystalline form, and was often colored yellow, purple, or blue, rather than the usual white. Court records also show that Faulkner and his fellow gang members possessed firearms in furtherance of the fentanyl trafficking conspiracy.

Following a coordinated crackdown on violent crime and fentanyl trafficking in Jackson County, including the investigation, arrest, incarceration, and prosecution of many TBF gang members and associates, Jackson County saw an approximately 48% reduction in non-fatal shootings, 43% reduction in fatal shootings, and 50% reduction in overdose deaths.

Four other co-conspirators have already pleaded guilty and/or been sentenced as follows:

• Zaire Faulkner, age 24 of Jackson was sentenced to 10 years in federal prison.
• Tommy Owens, age 32 of Jackson: was sentenced to 7 years and 3 months in federal prison.
• Mario Murguia, age 23 of Jackson: was sentenced to 5 years in federal prison.
• Demarquan Smith, age 21 of Jackson will be sentenced on January 30, 2023, and faces a 10-year mandatory/minimum prison term.

Charges remain pending against other co-conspirators, including Tamarious Faulkner, age 27 of Houston, Texas; Demond Johns, age 26 of Jackson; Brittany Bartkowiak, age 30 of Jackson; and Heather Dolan, age 37 of Jackson. They are set for jury trial on March 5, 2024. 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.

“The intersection of drugs and gangs almost inevitably results in violence in our communities. My office, in coordination with our federal, state, and local partners, will aggressively investigate and prosecute individuals or groups who sell poison to our communities .” U.S. Attorney Ison said.

“The Thorough Bred gang and Dominque Faulkner have terrorized the Jackson community for some time selling poison to the most vulnerable and through acts of gun violence,”  said James Deir ATF Special Agent in Charge of the Detroit Field Division. “Two things are certain from this case:   First, Jackson is a much safer community without Mr. Faulkner in it. Second, Dominique is better off in prison where he can reflect and seek redemption for all the lives he ruined.”

“We know it is a small number of individuals that wreak havoc in our community.  Through our continued strong partnership with the Bureau of Alcohol, Tobacco, Firearms and Explosives, it is a priority to identify these individuals and build solid criminal cases should they choose to engage in continued reckless and violent behavior,” said Director Hitt.

“Our community is a safer place today because of all the dedicated law enforcement professionals who worked together to address the violence and drug dealing of the “Thorough Bread Family” street gang. The positive outcome of the case of Dominque Faulkner underscores the value of strong partnerships between local, state and federal agencies.  I applaud the courage and resilience of the Jackson Community, and pledge to maintain our relentless pursuit of safety and justice for all,” stated Sheriff Gary R. Schuette, Jackson County Sheriff.

Dominque Faulkner is scheduled to be sentenced on February 1, 2024, before Judge Stephen J. Murphy, III. Faulkner faces a mandatory minimum sentence of 10 years in prison with a maximum sentence of life imprisonment.

This case was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives with the Michigan State Police, Jackson Police Department, and the Jackson County Sheriff's Office. The case is being prosecuted by Assistant U.S. Attorneys Andrew R. Picek, Matthew Roth and Craig Welkener.

FLINT — Julius K. Jordan, 26, of Mobile, Alabama was sentenced yesterday to over 15 years in federal prison following his conviction for conspiracy to commit murder-for-hire and possession of an unregistered short barrel rifle, 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. 

U.S. District Court Judge F. Kay Behm imposed sentence on Jordan following his guilty plea to conspiracy to commit murder-for-hire and possession of an unregistered short barrel rifle. 

According to court documents, on February 7, 2022, an individual identified as Person-1 solicited Jordan and his co-defendant Reginald L. Hunter to travel from Alabama to Flint, Michigan, to murder someone in exchange for money.  Person-1 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 roll through the stop sign and conducted a traffic stop.  During the stop, the troopers saw the assault rifles in the car. They 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. 

“This investigation is a great example of good police work by Michigan State Police; they thwarted a fatal shooting,” stated U.S. Attorney Ison. And cooperation between our state and federal partners remains strong, as ATF and the FBI continue to work diligently to hold all of those responsible accountable.  This sentence should send a strong message to those within our boundaries or beyond that we will put our strongest effort to removing violent offenders from our streets.”

“This case represents a tale as old as time - choices have consequences. Julian Jordan made a choice 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, you should 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."

Reginald Hunter is currently scheduled to proceed to trial on December 5, 2023.  The investigation of Person-1 remains ongoing. 

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 was prosecuted by Assistant United States Attorneys Jules M. DePorre and Anthony P. Vance. 

DETROIT - IPC Hospitalists of Michigan, Inc., Inpatient Consultants of Michigan, P.C., IPC Healthcare f/k/a IPC The Hospitalist Company, and Team Health Holdings, Inc. (defendants) have agreed to pay a total of $4,384,618 to the United States and the State of Michigan to resolve allegations that they violated the False Claims Act by upcoding inpatient hospital services, allowing their doctors to bill for more services than they could possibly provide in one day, and billing for services not rendered, announced United States Attorney Dawn N. Ison.  The State of Michigan will receive $606,483 of the settlement amount based on its share of alleged damages to the Medicaid program. 

Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan and Special Agent in Charge Mario Pinto, Health and Human Services, Office of Inspector General (HHS-OIG).

The defendants are related companies that employ and provide hospitalists to Michigan hospitals.  Hospitalists are doctors whose focus is the general medical care of hospitalized patients.  

The settlement announced today resolves three sets of allegations.  The first is that the defendants’ doctors regularly upcoded certain Current Procedural Terminology (CPT) codes typically used to report the most complex services relating to the evaluation and management of hospitalized patients.  Upcoding is alleged fraudulent medical billing in which a claim is submitted for payment regarding a service that is more expensive than the service that was actually performed.  The second set of allegations is that the defendants allowed their hospitalists to regularly bill for impossible days within the State of Michigan.  An impossible day occurs when a hospitalist purports to provide such a high volume of inpatient services or procedures in one day that there is no way the hospitalist reasonably could have performed them all.  The third set of allegations concern services and procedures purportedly rendered by the same provider, on the same day, and billed to the Medicare and Medicaid programs for beneficiaries located in Michigan and Indiana, which the government contends were not rendered to the Michigan-based beneficiaries.

“The False Claims Act is an important tool to deter and hold accountable those who submit fraudulent medical claims to the government,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan.  “Any allegation that a provider is billing for services not  actually provided will be vigorously investigated by our office.”

 “The submission of false claims to our Federal health care programs by individuals or institutions erodes the trust that we place in these providers and wastes valuable taxpayer dollars,” said Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).  “HHS-OIG remains committed to working with our law enforcement partners to ensure that those who submit false claims are held accountable.”

"We hope this settlement will bring some economic justice by requiring those responsible for this fraudulent scheme to pay for their actions," said Cheyvoryea Gibson, the Special Agent in Charge of the FBI in Michigan. "Healthcare fraud is not a victimless crime. Whenever the integrity of our healthcare programs is compromised, everyone bears the cost through potentially higher insurance premiums, out-of-pocket expenses, and even reduced or lost benefits. It would not have been possible to unravel the complexities of this scheme fueled by greed without the assistance of our partner agencies, and we would like to express our gratitude for their assistance in our quest for justice."

The civil settlement includes the resolution of claims brought under two separate qui tam or whistleblower lawsuits under the False Claims Act: United States ex rel. Saad v. IPC Hospitalists of Michigan, Inc., et al., Case No. 17-13656 (E.D. Mich.) and United States ex rels. Amine P. Amine and Redwan Asbahi v. Team Health Holdings, Inc., et al., Case No. 2:21-cv-10799 (E.D. Mich.).  Under the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of any recovery.  Relator Chadi Saad will receive $571,900.00 as part of the settlement.  Relators Redwan Asbahi and Amine Amine will receive $195,408 as part of the settlement.

The resolution obtained in this matter was the result of a coordinated effort among the United States Attorney’s Office for the Eastern District of Michigan, the Michigan Attorney General’s Health Care Fraud Division, the U.S. Department of Health and Human Services - Office of the Inspector General, and the Federal Bureau of Investigation.  The matter was handled by Assistant United States Attorneys John Postulka and John Spaccarotella from the U.S. Attorney’s Office for the Eastern District of Michigan.   

The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud.  One of the most powerful tools in this effort is the False Claims Act.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the U.S. Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

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

COLUMBUS, Ohio – U.S. Attorneys in Ohio and Michigan today announced a settlement agreement with Huntington National Bank that will make its services more accessible to Social Security Representative Payees (SSRP) and their beneficiaries with disabilities.

Huntington National Bank fully cooperated with the U.S. Attorney’s Offices in the Southern District of Ohio, Northern District of Ohio and Eastern District of Michigan to reach a settlement that will restore access to SSRPs who use online services the bank had previously restricted on behalf of beneficiaries with disabilities.

In February 2021, Huntington terminated the ability of individuals acting as SSRPs to use Huntington’s electronic banking services. Account holders with disabilities and their authorized representatives were thereby barred from full and equal access to the numerous online banking services Huntington offers.

Title III of the Americans with Disabilities Act of 1990 (ADA) prohibits banks like Huntington from discriminating against account holders with disabilities.

Under the terms of the agreement, Huntington must provide SSRPs with full access to its online banking system. The agreement also requires Huntington to notify both current and past account holders that it has changed its policies.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Dawn N. Ison, United States Attorney for the Eastern District of Michigan; and Rebecca C. Lutzko, United States Attorney for the Northern District of Ohio; announced the settlement.

“This settlement shows that we will continue to staunchly enforce the ADA and give Social Security beneficiaries with disabilities equal access to online banking,” said U.S. Attorney Kenneth L. Parker. “I commend the attorneys in my office and our counterparts in Northern Ohio and Eastern Michigan for their dedication to this important issue.”

“Collaborating with our partners to ensure our civil rights laws are enforced is one of my key priorities,” said Eastern District of Michigan U.S. Attorney Dawn Ison. “Ensuring equal online banking access to those who need it most, like disabled individuals who use SSRP accounts, is crucial,” she added.

“SSRPs provide an invaluable service to disabled Social Security beneficiaries, and it is critical that we protect their right to use the same banking conveniences available to non-disabled customers to ensure that they can take care of the basic needs of disabled beneficiaries,” said Northern District of Ohio U.S. Attorney Rebecca C. Lutzko.

Civil Chief Andrew M. Malek and Assistant United States Attorney Michael J.T. Downey are representing the Southern District of Ohio in this matter.

The claims resolved by this settlement are allegations only and there has been no determination of liability. In agreeing to the settlement terms, Huntington denied all liability under the ADA.

The public can also report potential civil rights violations in the Southern District of Ohio via the Civil Rights Referral Form on the U.S. Attorney’s Office main webpage.

Individuals can also submit complaints to the Civil Rights Division through its complaint portal at www.ada.gov/complaint. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.

# # #

Detroit, MI-- U.S. Attorneys in Michigan and Ohio today announced a settlement agreement with Huntington National Bank that will make its services more accessible to Social Security Representative Payees (SSRP) and their beneficiaries with disabilities.

Huntington National Bank fully cooperated with the U.S. Attorney’s Offices in the Eastern District of Michigan, Southern District of Ohio, and Northern District of Ohio to reach a settlement that will restore access to people with disabilities who use SSRP online services the bank had previously restricted.

SSRPs manage Social Security benefits for people who are unable to do so for themselves, often due to disability.  Benefits are direct deposited into accounts owned by beneficiaries, but only SSRPs have access to the funds to ensure that they are used to pay for needs such as food, shelter, and medical expenses.  SSRPs are not compensated for this work and are usually family members or friends who are stepping up to help a loved one. 

In February 2021, Huntington terminated the ability of individuals acting as SSRPs to use Huntington’s electronic banking services. Account holders with disabilities and their authorized representatives were thereby barred from full and equal access to the numerous online banking services Huntington offers.

Title III of the Americans with Disabilities Act of 1990 (ADA) prohibits banks like Huntington from discriminating against account holders with disabilities.

Under the terms of the agreement, Huntington must provide SSRP account holders, and their beneficiaries, full access to its online banking system. The agreement also requires Huntington to notify both current and past account holders that it has changed its policies.

Dawn N. Ison, United States Attorney for the Eastern District of Michigan; Rebecca C. Lutzko, United States Attorney for the Northern District of Ohio; and Kenneth L. Parker, United States Attorney for the Southern District of Ohio announced the settlement.

 “Collaborating with our partners to ensure our civil rights laws are enforced is one of my key priorities,” said Eastern District of Michigan U.S. Attorney Dawn Ison. “Ensuring equal online banking access to those who need it most, like disabled individuals who use SSRP accounts, is crucial,” she added.

“SSRPs provide an invaluable service to disabled Social Security beneficiaries, and it is critical that we protect their right to use the same banking conveniences available to non-disabled customers to ensure that they can take care of the basic needs of disabled beneficiaries,” said Northern District of Ohio U.S. Attorney Rebecca C. Lutzko.

“This settlement shows that we will continue to staunchly enforce the ADA and give Social Security beneficiaries with disabilities equal access to online banking,” said U.S. Attorney Kenneth L. Parker. “I commend the attorneys in my office and our counterparts in Northern Ohio and Eastern Michigan for their dedication to this important issue.”

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 Northern District of Ohio, and the Southern District of Ohio.

This matter was handled by Assistant U.S. Attorney Nedra Campbell from the Eastern District of Michigan, Assistant U.S. Attorney Michael Downey from the Southern District of Ohio, and Assistant U.S. Attorney Michelle Heyer from the Northern District of Ohio.

Individuals who believe they have been subjected to discrimination or experienced a civil rights violation in the Eastern District of Michigan can submit a complaint with its U.S. Attorney’s Office by email at usamie.civilrights@usdoj.gov or by phone at (313) 226-9151. For more information on the Office’s civil rights efforts, please visit https://www.justice.gov/usao-edmi/programs/civil-rights.

Individuals can also submit complaints to the Civil Rights Division through its complaint portal at www.ada.gov/complaint. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.

BAY CITY - A 39-year-old resident of Mt. Pleasant, Michigan was sentenced yesterday to 30 years in federal prison on charges of aggravated sexual abuse, announced U.S. Attorney Dawn N. Ison.  

 Jason Morris Pego was sentenced by United States District Judge Thomas L. Ludington.  He pleaded guilty to the charges on June 28, 2023.

According to court records, in 2016 or 2017 Pego, engaged in sexual acts with a 7-year-old child that was in his care. Pego took photographs of the victim during his sexual assaults and kept them on his cell phone.  Pego also threatened the victim and the victim’s sibling that he would hurt them and their family if they told anyone about the assaults. The crimes occurred on the Isabella Reservation in Mt. Pleasant, Michigan.

“The deplorable acts committed by this defendant justify the 30-year sentence imposed in this case,” stated U.S. Attorney Ison.  “My office is dedicated to protecting our tribal communities from sexual violence, especially our children, and ensuring that the perpetrators of these horrific crimes are held accountable.”

“Protecting children from dangerous predators is a top priority for our office," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “While the harm Mr. Pego is alleged to have inflicted cannot be undone, our hope is that the sentencing brings a sense of justice to the victim and their family. “

The case was investigated by the Saginaw Chippewa Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Roy Kranz.

The FBI investigates the most serious crimes in Indian Country, including child sexual and physical abuse, and requests the help of the public by reporting these violations to 1-800-CALLFBI (1-800-225-5324) or submitting tips online to http://tips.fbi.gov.

DETROIT – A federal indictment was issued charging the mayor of the City of Inkster with bribery, 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 Office of the Federal Bureau of Investigation.

Patrick Wimberly, 49, of Inkster, is the elected mayor of the City of Inkster, Michigan. According to the indictment, Wimberly demanded cash payments to facilitate the sale of property owned by the city (referred to as “Parcel 1”) to an outside party (referred to as “Person A”). Over several months, Person A provided Wimberly with monthly cash bribes to secure the purchase of this property. The monthly payments started at $5,000 but the parties agreed to eventually increase that amount. After the initial bribes, Wimberly explained that he was ready to increase the payments. Person A agreed. But when Person A later didn’t provide the amount Wimberly expected, Wimberly complained that he was due “10$ a month.” Person A then increased the monthly payments to $10,000. In total, Person A provided $50,000 in cash to Wimberly to assure a winning bid of Parcel 1.

Wimberly was charged with bribery concerning programs receiving federal funds, a violation of 18 U.S.C. § 666. This bribery charge carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000. 

“Elected public officials owe a duty to their community to act in the citizens’ best interest,” United States Attorney Ison said.  “Our office is committed to prosecuting those public officials who betray the public trust by accepting bribes.”

"Mr. Wimberly was elected to serve the people of Inkster, yet he prioritized his personal interests and greed over their needs," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "The FBI considers public corruption its primary criminal investigative concern and will continue investigating allegations to maintain public trust in elected officials."

The investigation of this case was conducted by the FBI's Detroit Area Corruption Task Force. The case is being prosecuted by Assistant U.S. Attorneys Steven P. Cares and Eaton P. Brown.

An indictment is only a charging document and is not evidence of guilt.

DETROIT – As part of the One Detroit Violence Reduction Partnership, United States Attorney Dawn N. Ison and One Detroit partners, local community organizations, and state and federal law enforcement agencies will gather for a Community Huddle and Peace March on Saturday, September 30, 2023, at 3pm starting at Mike’s Fresh Market located at 14383 Gratiot Avenue, Detroit, Michigan.

The peace march is part of the One Detroit Violence Reduction Partnership, a targeted strategy aimed at reducing gun violence in Detroit’s neighborhoods with the highest incidence of violent crime – Detroit’s 8th and 9th Precincts. The strategy has three components—enforcement, prevention, and reentry. One Detroit is a coalition of community and law enforcement partners working together to develop and execute the best strategies to reduce violent crime.

During the peace march, One Detroit partners will report on the results of the summer enforcement strategy while in the community and walk with residents in the name of peace. Other activities include yoga and mindfulness sessions and other community bonding experiences.

Residents in the 9th Precinct, as well as residents citywide, are welcome and encouraged to attend the march.

Media is welcome to attend the event and should contact Gina Balaya at Gina.Balaya@usdoj.gov or contact her directly at (313)226-9758.

A California real estate executive pleaded guilty yesterday to engaging in an extensive multi-year conspiracy to falsify financial statements.

According to court documents, Tyler Ross, 37, formerly of Michigan, served as co-chief executive officer of ROCO Real Estate LLC and ROCO Management LLC, both of which are based in Bloomfield Hills, Michigan. The ROCO companies, and related entities, operated as a commercial real estate firm engaged in the business of purchasing, managing, and selling multi-family residential properties, such as apartment complexes, located in Michigan and elsewhere.

“Tyler Ross falsified corporate records to deceive lenders by fraudulently inflating the income of ROCO properties,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The guilty plea demonstrates the Department’s commitment to holding accountable those who lie to lenders and banks, including executives in commercial real estate.”

“Honest financial reporting is the foundation of our banking and lending system,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “My office will not hesitate to prosecute those who lie in order to engage in financial crimes, regardless of the titles they may have.”

Between 2015 and 2019, Ross and his co-conspirators caused false financial documents to be submitted to mortgage-lending businesses for underperforming ROCO properties, making the properties appear to be more profitable than they were. Ross, who is also a licensed attorney, personally falsified historical operating statements during the conspiracy and directed other members of the conspiracy to assist with the creation and submission of falsified financial statements to submit to mortgage-lending businesses. Ross and his co-conspirators deleted or reduced actual expenses from historical operating statements for certain underperforming ROCO properties and caused the falsified statements to be submitted to lenders. 

“The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) aggressively investigates allegations of mortgage fraud,” said Special Agent in Charge Catherine Huber of FHFA-OIG’s Central Region. “We investigate and hold accountable anyone who has engaged in unlawful activities to illegally profit through the mortgage loan process, whether residential or commercial.”

“Those who willfully provide false financial information limit the amount of money that is available for individuals and companies who are doing the right thing,” said Special Agent in Charge Shawn Rice of the Department of Housing and Urban Development Office of Inspector General (HUD-OIG). “This case demonstrates HUD-OIG’s commitment to working with its law enforcement partners to investigate and hold accountable those who violate the law.” 

“Mortgage fraud is a serious offense that affects lenders and borrowers alike,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “This case demonstrates the FBI’s continued commitment to protecting our banking and mortgage industry by going after anyone who obtains loans under false pretenses.”

Ross pleaded guilty to one count of conspiring to commit an offense against the United States. He is scheduled to be sentenced on March 12, 2024, 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 FHFA-OIG, HUD-OIG, and FBI are investigating the case.

Trial Attorneys Andrew Tyler and Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew J. Yahkind for the Eastern District of Michigan are prosecuting the case.

DETROIT– United States Attorney Dawn N. Ison announced today that six Michigan businesses have agreed to pay $534,630 to settle allegations that the businesses violated the False Claims Act (FCA) by knowingly making false certifications to the U.S. Small Business Administration (SBA) relating to loan eligibility under the Paycheck Protection Program (PPP).

Joining in the announcement was Brady Ipock, Acting Special Agent-in-Charge of the SBA’s Office of the Inspector General, Central Region.

Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering economic hardship due to the COVID-19 pandemic.  The CARES Act authorized billions of dollars in forgivable loans to certain small businesses and other entities struggling to pay employees and other business expenses.  PPP loan applicants were required to certify that neither the applicant, any owner of the applicant, nor any business owned or controlled by any of them, had ever obtained a direct or guaranteed loan from the SBA that was currently delinquent or had defaulted in the last seven years and caused a loss to the government.

In 2020 and 2021, Burton Hotel, Inc., 8 Mile & Hubble, Inc., Gather of Troy, Inc., Alyass Toledo, Inc., DB Troy Pub, LLC, and Fort Wayne Business Hotel, Inc. collectively obtained 10 PPP loans.  The United States contended that these businesses falsely certified that they were eligible for the PPP loans, when in fact they were categorically ineligible because, in the last seven years, one of their owners had defaulted on a prior SBA loan and caused a loss to the government.

“PPP loans were intended to provide critical relief to help small businesses here in Michigan and elsewhere,” said U.S. Attorney Ison.  “Our office will continue to investigate and hold accountable any individual or business that obtained relief funds under the PPP or other COVID-19 assistance programs that they didn’t deserve.”

This matter was handled by Assistant U.S. Attorney Anthony Gentner from the United States Attorney’s Office for the Eastern District of Michigan, with assistance from the SBA’s Office of General Counsel and the SBA Office of the Inspector General.

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

Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here.  Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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

DETROIT – Immanuel Gates, 21, of Southfield, MI, was sentenced in federal court in Detroit today to 94 months in federal prison for illegal possession of a machine gun and aggravated identity theft, announced United States Attorney Dawn N. Ison.  Gates was a member of the violent R Block street gang, which was active in the city of Pontiac.

Ison was joined in the announcement by Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General and James Deir, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives.

According to court records, Gates stole over $400,000 from at least four different states, in an unemployment insurance fraud scheme. Gates used personal identifying information of victims to assume their identities and fraudulently apply for unemployment in Michigan, Rhode Island, Arizona, and California. Gates used addresses in Pontiac MI, Waterford MI, and Ventura CA to perpetrate this fraud. Gates engaged in approximately $413,114 of unemployment insurance fraud.

Gates used some of the money he fraudulently obtained to purchase firearms. In a single day, Gates spent at least $3,273 of his fraud proceeds to purchase four firearms. Two of those firearms were subsequently used in shootings in Pontiac. Gates also transferred at least $7,950 to a straw purchaser who purchased firearms on his behalf. The straw purchaser has pleaded guilty in federal court.

Gates also purchased over thirty Glock conversion devices, commonly called “switches” from a Russian website. A Glock conversion device converts a semi-automatic pistol into a fully automatic firearm. Gates spent no less than $14,700.00 on guns and Glock conversion devices between October of 2020 and September of 2021.

“This prosecution and sentence reflect my office’s commitment, to hold accountable those relative few individuals who drive violence in our communities,” stated United States Attorney Dawn Ison. “And make no mistake, those who supply guns for others to use illegally are driving violence and will face federal prosecution.”

“Today’s significant sentence sends a strong message to dangerous street gangs that the law enforcement community will use every available tool to ensure the safety of our communities. Immanuel Gates engaged in an egregious scheme to obtain more than $400,000 in unemployment insurance funds by using stolen identities to file fraudulent claims. Gates used the proceeds of his fraudulent activities to purchase machine gun switches, which turn handguns into automatic weapons” said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.  “We are grateful to the U.S. Attorney’s Office for the Eastern District of Michigan, the ATF, and our other federal, state, and local law enforcement partners for their strong partnership and collaboration on these types of investigations.”

This case was investigated by special agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Department of Labor, Office of Inspector General.  This case was prosecuted by Assistant United States Attorney Matthew Roth.

DETROIT – After a joint investigation between local and federal law enforcement, Scott Sams, 54, was sentenced to 20 years in prison, United States Attorney Dawn N. Ison announced today. United States District Court Judge Laurie J. Michelson sentenced the defendant after he pleaded guilty to distributing methamphetamine that killed two victims.

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

Scott Sams, of Southgate, Michigan, was identified by law enforcement as a methamphetamine distributor in the Downriver area. Investigators discovered that Sams often convinced his customers to “party” with him, concocting “hot shots” of methamphetamine and Alka-Seltzer tablets to purposely increase their high.

In May 2021, Sams met one of the victims at a hotel room in Allen Park. There, he gave her a fatal amount of methamphetamine and fled the hotel room as she overdosed and died.

Despite this victim’s death, Sams continued to distribute methamphetamine. Just weeks later, Sams delivered a second fatal dose of methamphetamine to a male victim in Farmington Hills.

U.S. Attorney Ison said. “My office will use every resource available to combat drug dealers who push controlled substances into our communities with indifference to the tragedy it inflicts. We will not hesitate to seek stiff penalties to keep this community safe.”

“We are hopeful this sentencing brings a sense of justice to the victims’ families, whose loved ones were recklessly endangered by the defendant,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “We are grateful to our law enforcement partners for their support throughout this investigation, particularly the Southeast Michigan Region Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force.”

The case was investigated by federal agents of the Federal Bureau of Investigation. Assistant United States Attorneys Margaret Smith and Caitlin Casey prosecuted the case for the United States.   The FBI Detroit Field Office asks that anyone who believes they may have been victim of the type of crime as committed by this defendant contact 1-800-CALLFBI (1-800-225-5324) or submit tips online to http://tips.fbi.gov

DETROIT – A Canadian trucker was convicted last week by a federal jury on charges of possessing with the intent to distribute over 50 kilograms of cocaine, United States Attorney Dawn N. Ison announced today.

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

Convicted was Subeg Singh, 30.  The three-day trial was held in Detroit before U.S. District Stephen J. Murphy III. Singh has been in custody since his arrest in September 2021.

Evidence presented during the trial showed that Singh tried to drive more than 50 kilograms of cocaine across the US-Canadian border in September 2021 in a commercial truck. But, he was stopped at the Ambassador Bridge by Customs and Border Protection Officers, who discovered the drugs in the trailer.

“Today’s verdict sends a message to drug traffickers and couriers who compromise the security of our borders by attempting to transport narcotics across them,” stated United States Attorney Ison. “This verdict is a result of the hard work of our Customs and Border Protection Officers who intercepted the drugs, and Homeland Security Investigations who investigated the case.”

“HSI relentlessly pursues drug traffickers that exploit international commerce for their illicit gains,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “By thwarting this attempt with our CBP partners, we disrupt the transportation networks that supply drugs to our local communities.”

Given the type and quantity of drugs involved, Singh is facing a mandatory 10-year prison sentence, with a maximum possible sentence of life imprisonment.  Sentencing is set for January 9, 2024.

This case was investigated by Customs and Border Protection and Homeland Security Investigations.  It was prosecuted by Assistant United States Attorneys Robert White and Erin Ramamurthy.  

DETROIT – Two drug traffickers were sentenced to 25 and 30 thirty years in prison for murdering two individuals over a drug debt, United States Attorney Dawn N. Ison announced today.

Ison was joined in the announcement by Acting Special Agent in Charge Devin J. Kowalski, Federal Bureau of Investigation, Detroit Division.

Mariano Garcia, age 53, of Brownsville, Texas, was sentenced by United States District Judge Terrence G. Berg to a 25-year prison term. His co-defendant Michael Griffin, age 40, of Birmingham, Alabama, was sentenced by Judge Berg to 30 years in prison. Both men previously pleaded guilty to (1) conspiracy to possess with intent to distribute cocaine and heroin, (2) interstate travel with the intent to kill or injure where death resulted, and (3) interstate travel in aid of illegal activity where death resulted.

As part of their guilty pleas, both Garcia and Griffin admitted to engaging in a long-term drug trafficking conspiracy involving cocaine supplied by Garcia in Texas and distributed by Griffin and others in Birmingham, Alabama, and Detroit, Michigan. At his plea, Garcia admitted to encouraging Griffin to travel from Alabama to Detroit to collect a drug debt from a Detroit-based member of the conspiracy. In December 2016, Griffin and another individual came to Detroit for the purpose of killing that member of the conspiracy. After coming to the conspirator’s home, Griffin and the other individual tied up and shot to death the Detroit-based co-conspirator and another man. They used pillows to muffle the sounds of the gunshots. At his plea, Garcia, who remained in Texas, also admitted he encouraged Griffin to hurt the co-conspirator to collect the drug debt. After the murders, Griffin and Garcia returned to their drug business. Garcia and Griffin also admitted that they had distributed between 50 and 150 kilograms of cocaine during the conspiracy.

“Today’s sentences should serve as a warning to drug dealers who commit violence in our community that my office will use every resource at its disposal to bring you to justice. I am hopeful that the families of the victims will receive some measure of solace from these substantial sentences.” U.S. Attorney Ison said.

“Our hope is that today's sentencings bring a sense of relief and justice to the victims’ families, whose loved ones were murdered to further a drug distribution conspiracy,” said Devin J. Kowalski, Acting Special in Charge of the FBI’s Detroit Field Office. “The defendants' actions were indefensible, cruel, and unjust. We are grateful for our federal, state, and local partners who worked so closely to solve this case.”

The case was investigated by special agents of the Federal Bureau of Investigation, Drug Enforcement Administration, and Detroit Police Department’s Homicide Task Force. It was prosecuted by Assistant U.S. Attorneys Rajesh Prasad and Robert Moran.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF

DETROIT – Today, United States Attorney Dawn N. Ison, along with Detroit Mayor Mike Duggan, Wayne County Prosecuting Attorney Kym Worthy, and Detroit Police Chief James E. White as part of the One Detroit Violence Reduction Partnership announced the results of the targeted strategy aimed at reducing gun violence in Detroit’s neighborhoods with the highest incidence of violent crime – Detroit’s 8th and 9th Precincts. The strategy had three components—prevention, enforcement, and reentry—and is a part of the One Detroit partnership announced earlier this year. One Detroit is a coalition of community and law enforcement partners working together to develop and execute the best strategies to reduce violent crime. 

Joining in the announcement were Alvin Stokes, President, Citywide Citizens Police Community Relations, Acting Special Agent in Charge Devin J. Kowalski, Federal Bureau of Investigation, Detroit Division, Bishop Edgar Vann, II, Second Ebenezer Church,  Special Agent in Charge James Deir, Bureau of Alcohol, Tobacco, Firearms and Explosives, Kenyatta Stephens, CEO Black Family Development,  Special Agent in Charge Orville Greene, Drug Enforcement Administration, Detroit Division, and Beverly Smith, Assistant Deputy Director, Operations Office, Michigan Department of Corrections.

The initiative began on Memorial Day and ended on Labor Day.  One part of the effort was an enforcement strategy designed to prosecute the most violent individuals and crimes in federal court when that was possible. This effort resulted in 22 defendants being charged with federal firearms offenses including being a felon in possession of a firearm, illegal possession of a machine gun, possession of a stolen firearm and possession of a firearm with an obliterated serial number.  Of those charged, 13 defendants have been detained pending trial, three defendants have pleaded guilty to charges, and 18 defendants are pending trial.

According to Detroit Police Department statistics, from June 1 to August 31, there was nearly a 20% reduction in target violent offenses in the 8th Precinct, an 11% reduction in the 9th Precinct, and a nearly 6% reduction citywide compared to the same time last year.

The One Detroit partnership also engaged in preventing crime in the targeted areas through Peacenics, a collective gathering of the community and law enforcement where we shared in food, fellowship and fun in the name of peace.  The events featured vendors offering a variety of resources, including job training, literacy programs, mental health and medical screenings, utility assistance, educational and vocational opportunities, tutorial, career development.  The Peacenics allowed residents to have fun, engage with law enforcement, and obtain resources to improve the quality of their lives.   Approximately, 4800 Detroit residents attended the two Peacenics held on July 8 in O’Hair Park and July 15 in Heilmann Park. 

Finally, the One Detroit partnership also focused on reentry as a way of preventing recidivism by empowering returning citizens to become stable, contributing members of the Detroit community.  As a result of these efforts, 50 returning citizens participated in community roundtables intended to provide motivation and insight about taking advantage of second chances after a criminal conviction.  At the events, family members of probationers were also invited to participate in breakout sessions to discuss barriers to stability. One Detroit partners also assisted with employment needs and helped connect attendees with resources.

United States Attorney Dawn N. Ison stated, “We are encouraged about the progress we made toward our goal to make this city safer, but there is still work to do.   My office and our One Detroit Partners won’t stop working until we can meaningfully reduce violence in this city.”  

Mayor Duggan stated, "We've never had a US Attorney here in Detroit as passionate about crime prevention in our neighborhoods than Dawn Ison, and the results of her strategy speak for themselves. We saw a nearly 20% reduction in violent crime in the 8th Precinct alone this summer. The balanced approach of strict multi-agency enforcement against those who commit acts of violence and support for those willing to participate in programs that keep them out of trouble, surely made a big difference."

“This partnership is something that we must continue. It is always vitally important to work together to reduce crime and improve the quality of life in Detroit. The initiative has wisely included supporting our returning citizens. This component is a welcome addition that will pay dividends in the future,” said Wayne County Prosecutor Kym Worthy.

“We’re encouraged by the results of this year’s One Detroit Partnership, which brought agencies at all levels of the system and members of the community together to keep people safe in some of the city’s neighborhoods that are most impacted by crime,” said Chief James E. White. “I look forward to continued collaboration with these partners in our mission to make Detroit a safer place for all.”

DETROIT - In commemoration of the 29th anniversary of the original enactment of the Violence Against Women Act (VAWA), the Justice Department announced nearly $193 million in formula and discretionary grant awards to support crucial services and justice responses for survivors of domestic violence, dating violence, sexual assault, and stalking, including $5,283,715.00 for the Eastern District of Michigan.

For nearly three decades, VAWA provided the tools and resources to protect and serve survivors of domestic violence, dating violence, sexual assault, and stalking. To commemorate the 29th anniversary of VAWA, the U.S. Attorney’s Office for the Eastern District of Michigan is proud to announce that the Department of Justice Office on Violence Against Women (OVW) awarded $5,283,715.00 to the Eastern District of Michigan to support community responses to gender-based violence.

Specifically, the Eastern District of Michigan received the following funds for the 2023 fiscal year:

·           OVW awarded $580,000.00 under Grants for Training and Services to End Violence Against Individuals with Disabilities and Deaf People Program (Disability Grant Program) to support services for individuals who have disabilities or are Deaf. Funding will provide specialized training, outreach, cross-training for various agencies, and developing model programs to strengthen organizational capacities in assisting survivors. The recipient of the grant is the Michigan Coalition to End Domestic and Sexual Violence.

In addition, VAWA’s signature program is the STOP (Services, Training, Officers, and Prosecutors) Violence Against Women Formula Grants Program, which awards funds to every U.S. state and territory to promotes a coordinated community response among law enforcement, prosecution, courts, victim services organizations, and other community services to ensure the safety of survivors. OVW is awarding $4,703,715 under the STOP Program to the Michigan Department of Health and Human Services to enhance the capacity for communities across the country to develop programs to end gender-based violence and hold offenders accountable.

Just last week the Department of Justice Office on Violence Against Women (OVW) awarded $1.2 million to the Eastern District of Michigan to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking. The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault. These services provide interventions, such as securing restraining or protective orders, that are crucial for survivor safety.

•          OVW awarded $750,000 under the Legal Assistance for Victims (LAV) Program to the Michigan Advocacy Program of Ypsilanti. The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking. Through this new Legal Assistance for Victims project, the Tribal Survivor Project, which is housed within the Michigan Advocacy Program, in partnership with Uniting Three Fires Against Violence, seeks to expand culturally specific, free civil legal assistance in family court matters in state and tribal courts to tribal survivors of domestic violence, sexual assault, and stalking in Michigan, prioritizing survivors in northern Michigan.

•          OVW awarded $450,000 under the Justice for Families (JFF) Program to Growth Works, Inc. of Plymouth. The JFF Program aims to improve the capacity of communities and courts to respond to families impacted by violence. Through this new Justice for Families project, Growth Works, in partnership with First Step and the Third Judicial Circuit Court of Michigan, will implement a standard project addressing the following purpose areas: 1) supervised visitation and safe exchange; 3) training for court-based and court related personnel; and 8) training within the civil justice system for Wayne County, Michigan.

Dawn N. Ison, United States Attorney commented: “Preventing and ending violence against women makes the world a safer and more equitable place.    I am very pleased that the  Office on Violence Against Women recognizes this important work and has made these significant investments in our community. 

###

OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.

BAY CITY — Daniel Marin, 47, of Saginaw was sentenced last week to 11 years and 8 months in federal prison for his role in attempting to purchase 17 kilograms of cocaine from an undercover federal agent, U.S. Attorney Dawn N. Ison announced. 

Ison was joined in the announcement by Angie Salazar, Special Agent in Charge of the Detroit Field Office of Homeland Security Investigations (HSI).

U.S. District Court Judge Thomas L. Ludington imposed sentence on Marin following his guilty plea to attempting to possess with the intent to distribute five or more kilograms of cocaine. 

According to court documents, during the summer of 2020, Marin and two other men planned to obtain a large quantity of cocaine for distribution throughout the Saginaw-Bay area.  In furtherance of the plan, Marin contacted a person whom he thought was a narcotics broker in Mexico.  In reality, however, the “narcotics broker” was an undercover HSI special agent.  Marin subsequently negotiated the purchase of 17 kilograms of cocaine from the undercover agent for $34,000 per kilogram.  On September 3, 2020, Marin and his two co-defendants traveled to a hotel in Flint to purchase the 17 kilograms of cocaine.  Marin met with the undercover agent and verified the presence of the cocaine while his two co-defendants waited in the parking lot with the money.  After verifying that the undercover agent had the cocaine, Marin went to the parking lot to retrieve the money from his co-defendants.  HSI agents arrested the three men and seized over $500,000 in cash from them. 

“Our office, along with our state and federal law enforcement partners, will continue to hold those individuals to account who seek to import illegal drugs into our country and communities,” said U.S Attorney Ison.

“Drug traffickers who poison our communities should expect to face justice here in Michigan,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “Our agents and partners will continue to identify, disrupt and dismantle these drug trafficking organizations wherever we find them."

This investigation was conducted by Homeland Security Investigations (HSI), with assistance from the FBI, Detroit Police Department, and Michigan State Police.  The case was prosecuted by Assistant United States Attorneys Timothy Turkelson and Katharine Hemann.

A Michigan man was sentenced to one year and a day in prison for assaulting and strangling his spouse at their off-base residence outside of U.S. Army Garrison Japan in Sagamihara, Japan.

According to court documents, on July 19, 2021, Robert Hammock, 39, of Detroit, and his spouse got into an argument inside their residence. The argument escalated and Hammock punched his spouse in the eye twice, hit her on the head and body, pushed her to the ground, and then strangled her. She was able to escape only when Hammock stopped assaulting her as he attempted to take her cell phone, which she had dropped due to the force of the strangulation. The victim sustained injuries, including bruising around her eye and on her cheekbone, and lacerations on her neck.

On May 4, Hammock pleaded guilty in the Eastern District of Michigan to one count of assault of a spouse by strangulation.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Dawn N. Ison for the Eastern District of Michigan, and Special Agent in Charge Michael DeFamio of the Department of the Army Criminal Investigation Division (Army CID) Far East Field Office made the announcement.

Army CID investigated the case.

Trial Attorney Chelsea Schinnour of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael Taylor for the Eastern District of Michigan prosecuted the case. 

Today kicked off the two-day 2023 Great Lakes Native American Conference focused on Native American issues and strengthening relationships with Tribal communities across the region. The conference is sponsored by the U.S. Attorney’s Office for the Western District, the U.S. Attorney’s Office for the Eastern District of Michigan, the U.S. Attorney’s Office for the Western District of Wisconsin, the U.S. Attorney’s Office for the Eastern District of Wisconsin, the U.S. Attorney’s Office for the District of Minnesota, and the U.S. Attorney’s Office for the Northern District of Indiana. 

“This conference brings together victim support specialists, law enforcement officials, advocates, and others who work on Tribal matters across the Great Lakes Region,” said U.S. Attorney Mark Totten. “My office is deeply committed to carrying out our responsibilities to protect Tribal communities and preserve their status as sovereign nations. This conference is one tool to help us advance that mission.”

U.S. Department of Interior Assistant Secretary for Indian Affairs Bryan Newland served as a keynote speaker. In 2021 Secretary of the Interior Deb Haaland launched the Federal Indian Boarding School Initiative, a comprehensive effort to recognize the troubled legacy of federal Indian boarding school policies with the goal of addressing their intergenerational impact and shedding light on the traumas of the past. Assistant Secretary Newland, who has led the Initiative, used his remarks to address this important effort.

"For the first time, the federal government is examining its role in the federal Indian boarding school system and how that contributed to the forced assimilation of Indigenous Peoples, resulting in the breakup of families and Tribal Nations and the loss of languages, cultural practices, and relatives," Assistant Secretary for Indian Affairs Bryan Newland said. "The Federal Indian Boarding School system left lasting scars that continue to impact Tribal communities. Today, the federal government is working to help heal these scars as we support Tribes in their efforts to revitalize their economies, languages, and cultural practices and promote public safety and justice so that they can continue to exist as Indigenous Peoples."

Preparation for the conference, which is being held in New Buffalo, Michigan at the Four Winds Casino, was a collaborative effort between various tribes, Tribal advocates, and the various U.S. Attorneys’ Offices. Some of the topics covered include Sextortion: History, Methods, and Impact on Victims; Indian Boarding Schools; Drugs: Myths, Trends, and Opportunities to Intervene; Missing or Murdered Indigenous Persons; and Federal Indian Law changes. 

“My office is committed to furthering and strengthening our relationship with our Native American community in the Eastern District of Michigan,” said Dawn N. Ison, U. S. Attorney for the Eastern District of Michigan. “I welcome the opportunity to collaborate and discuss issues that directly impact our Tribal partners. This conference and its focus on hope and healing helps facilitate not only communication, understanding, and opportunities for law enforcement partners serving Native American communities to further learn ways in which we can best serve Native Americans, it also allows for the type of engagement that helps build trust and legitimacy between the tribes and law enforcement.”

“This conference provides an opportunity to discuss public safety issues with our Tribal partners, such as combatting violence against women and addressing the devastating consequences of drug trafficking and substance use disorder in Indian country,” said U.S. Attorney Timothy M. O’Shea of the Western District of Wisconsin. 

Pokagon Band Tribal Vice Chair Gary Morseau; Little River Band of Ottawa Indians Ogema Larry Romanelli; Dr. Colleen Lane, MD, of Corewell Health; Dan Wicklund, DNPA, RN, of Corewell Health; and Katheryn E. Fort, Director of the Indian Law Clinic at the Michigan State University College of Law also served as speakers at the conference. Attendees of the conference included Tribal members, Tribal law enforcement, Tribal governments, federal government partners, and other victim service providers that work with Indian Country victims.

“This conference highlights what collaboration can do by gathering Tribal nations and units of governments together, to create better communication and strengthen relationship between the participants,” said Ogema Larry Romanelli. “I am thankful to the U.S. Attorney’s Offices for their sponsorship, and the Department of Interior’s involvement.  I am honored to participate.”

“On behalf of the Pokagon Tribal Government, we would like to acknowledge the purpose of this conference focused on Native American issues, our collaboration with federal partners, and the role of the U.S. Department of Justice in successfully defending the constitutionality of the Indian Child Welfare Act before the Supreme Court,” said Pokagon Tribal Vice Chair Gary Morseau.

The 2023 Great Lakes Native American Conference and events like it, are components of the Justice Department’s ongoing initiative to increase engagement, coordination, and action on public safety in American Indian and Alaska Native communities.

# # #

DETROIT – A supporter of the “Boogaloo” movement was sentenced today to 12 months in prison after having pleaded guilty in April to being a drug user in possession of firearms and ammunition, and for making a false statement in connection with the acquisition of a firearm, announced United States Attorney Dawn N. Ison.

Ison was joined in the announcement by Devin J. Kowalski, Acting Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

Timothy Allen Teagan, 23, of Plymouth, Michigan, was sentenced before United States District Judge Sean F. Cox.

According to court records, Teagan is a supporter of the anti-government Boogaloo movement.  Members of the Boogaloo movement advocate for the violent overthrow of the government.  They believe that a civil war or uprising against the government is coming to the United States, and they refer to that conflict as the “Boogaloo.”  On July 17, 2022, Teagan completed a Firearms Transaction Record, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473, in connection with the acquisition of a firearm from a federally licensed firearms dealer in Westland, Michigan. Teagan applied for the purchase of a Glock 34, 9-millimeter pistol.  On the ATF Form 4473, Teagan checked “no” to the question concerning drug use.  At the time Teagan prepared the ATF Form 4473 and submitted it, he was a frequent and habitual user of marijuana and was also addicted to the drug. Teagan lied on the ATF Form 4473 because he knew that he would be legally prohibited from purchasing and possessing a firearm if he answered truthfully and admitted that he was addicted to marijuana, or a habitual user of marijuana.  Teagan subsequently purchased the Glock 9-millimeter pistol on July 20, 2022.  

In addition, in October 2022, Teagan possessed a Diamondback Arms, Inc. DB-15 .556 caliber semi-automatic rifle and ammunition. Teagan stored the rifle and some of the ammunition in his bedroom at his father’s home located in Plymouth, Michigan.  Teagan purchased the rifle in December 2019 from a federally licensed firearms dealer in Canton, Michigan. At the time of the December 2019 purchase, Teagan knew that he was a frequent and habitual user of marijuana and therefore not permitted to possess the firearm.

On October 27, 2022, FBI agents executed a search warrant at Teagan’s father’s residence in Plymouth.  During the search, agents recovered the DB-15 rifle, Level IV body armor, gas masks, dozens of rounds of rifle and pistol ammunition, an ACOG rifle sight, firearm magazines, and Boogaloo movement flags and patches.  The Glock 9-millimeter pistol was recovered from a nearby vehicle.   

“Our office stands ready to aggressively prosecute those who seek to circumvent federal firearms laws intended to protect our community, stated U.S.  Attorney Dawn Ison. .”  

The case was investigated by the FBI and prosecuted by Assistant United States Attorney Saima Mohsin.

DETROIT - A Michigan interventional pain management specialist, Rajendra Bothra, M.D., and two medical entities that he owned and operated, The Pain Center USA, PLLC, and Interventional Pain Center, PLLC, (collectively, “Defendants”) have agreed to pay $6,500,000 to resolve claims that they violated the federal False Claims Act, United States Attorney Dawn N. Ison announced today.

The settlement announced today resolves allegations that from January 1, 2015, to December 31, 2018, Defendants billed Medicare and Medicaid for excessive and medically unnecessary presumptive and definitive urine drug tests that were not relevant to their patients’ diagnosis or treatment, along with additional laboratory charges that were not separately billable with the urine drug tests. Additionally, Defendants are alleged to have billed Medicare and Medicaid for medically unnecessary moderate sedation services that were routinely performed in conjunction with interventional pain management procedures that did not require moderate sedation services. The government also alleges that Defendants frequently charged Medicare and Medicaid for expensive back braces that were medically unnecessary or otherwise ineligible for reimbursement.

“Our office remains steadfast in our commitment to protect federal health care programs, their beneficiaries, and taxpayers from fraud and abuse,” said U.S. Attorney Ison.

“This settlement underscores the important role that medical providers have in ensuring that the claims submitted to Federal health care programs are medically necessary,” said Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “Our office remains committed to working with our law enforcement partners to ensure that health care providers who violate the False Claims Act are held accountable.”

“When healthcare providers manipulate the Medicaid and Medicare systems, it wastes resources meant to help those in need,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI’s Detroit Field Office. “This settlement brings to bear some economic justice by requiring those who orchestrated the fraud scheme to pay for their actions.”

The civil settlement includes the resolution of claims in two separate lawsuits brought by relators under the qui tam or whistleblower provisions of the False Claims Act. Under these

provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The two qui tam cases are captioned United States ex rel. Ronald Kufner et al. vs. The Pain Center USA PLLC, et al., No. 2:17-cv-11644 (E.D. Mich.) and United States ex rel. Hersh Patel vs. Interventional Pain Center, et al, No. 2:18-cv-12728 (E.D. Mich.). As part of the settlement, the relators will receive a combined payment in the amount of

$1,267,500.

The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Michigan, and the Michigan Attorney General’s Health Care Fraud Division, with assistance from the U.S. Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigations. Assistant U.S. Attorney Carolyn Bell Harbin represented the United States in this matter.

The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800- HHS-TIPS (800-447-8477).

DETROIT – Members of a violent Detroit gang were indicted on various federal charges including racketeering conspiracy, trafficking controlled substances, firearm charges, and unemployment insurance fraud, announced United States Attorney Dawn N. Ison.

The members of the Purple Heart Vets gang who were indicted by a federal grand jury include:

• Devin King, 24, of Detroit
• Trevon Mathis, 23, of Detroit
• Jordan Gilmore, 24, of Novi
• Devon Hill, 25, of Taylor
• Vincent McKinney, 24, of Detroit
• Malik Thomas, 24, of Detroit

U.S. Attorney Ison was joined in the indictment unsealing announcement by Special Agent in Charge James Deir, Bureau of Alcohol, Tobacco, Firearms and Explosives, Detroit Division, and Irene Lindow, Special Agent in Charge of the Great Lakes Region of the Department of Labor-Office of the Inspector General.

According to the indictment and other court records, the Purple Heart Vets gang allegedly promote themselves as soldiers in battle, engaging in violence on the streets of Detroit on behalf of the gang. Operating primarily on the northwest side of Detroit, the leaders rewarded gang members who engaged in acts of violence with Purple Hearts. They obtained guns and coordinated attacks on their rivals. The attacks led to multiple shootings in and around Detroit, which resulted in serious injuries and fatalities. In one instance, a minor was caught in the crossfire during an attack on a rival gang member. The gang also sold controlled substances and engaged in significant unemployment insurance fraud to raise money to further their criminal activities.

“This indictment is another example of our office’s commitment to addressing violent crime in the City of Detroit. We believe that by removing the individuals who are the primary drivers of violent crime we can provide our neighborhoods with the peace we should all expect and deserve,” U.S. Attorney Ison said.

“Serious crimes have serious consequences. Gang members using the streets of Detroit as a battlefield to settle scores can expect to be shut down by law enforcement,” said Special Agent in Charge James Deir. “It should be common knowledge throughout metro-Detroit: If you pack an illegal firearm, you should pack your bags for prison…Everyone deserves to live in a community without the threat of senseless gun violence.”

“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving unemployment insurance programs. This is particularly true when an allegation involves racketeering and violent crimes in our communities. We will continue to work with our law enforcement partners and state workforce agencies to aggressively investigate these type of allegations,” said Irene Lindow, Special Agent-in- Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.

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 case was investigated by special agents of the Bureau of Alcohol Tobacco, Firearms, and Explosives and the Department of Labor, Office of Inspector General. This case in being prosecuted by Assistant United States Attorneys assigned to the United States Attorney’s Office’s Violent and Organized Crime Unit.

This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of 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 for lasting reductions in crime.

DETROIT – Richard Sollars, 49, pleaded guilty today to conspiracy to commit bribery and wire fraud, announced United States Attorney Dawn N. Ison. The charges were in connection with the City of Taylor’s Right of First Refusal (“ROFR”) Program and also involved a scheme to defraud donors to Sollars’ election campaign account by fraudulently using donated funds for his personal benefit.

U.S. Attorney Ison was joined in the announcement by Devin J. Kowalski, Acting Special Agent-in- Charge of the Detroit Field Office of the Federal Bureau of Investigation.

According to court records, between 2016 and 2018, Sollars exercised his authority and influence as Mayor and recommended to the Taylor City Council that Awad’s company, Realty Transition, be awarded the majority of the tax-foreclosed properties that the City had or would acquire under its ROFR program. This was a program designed to allow Taylor to acquire tax-foreclosed properties from Wayne County for redevelopment. Sollars recommended Realty Transition for the ROFR program, intending to be influenced and rewarded by the free home renovations and other items of value that Awad provided to Sollars for his personal residence, office, and lake house.

As part of his election efforts, Sollars established a campaign account entitled, “Committee to Elect Richard Sollars, Jr.” Sollars engaged in a scheme to defraud his donors by fraudulently using funds that were donated for his personal benefit rather than for his political campaign. In furtherance of the fraudulent scheme, Sollars directed his campaign treasurer to provide him with a signed blank check from his campaign account. Sollars then made that check payable to Dominick’s Market in the amount of $5,600, purporting to represent payment for catering services provided to the campaign. The owner of Dominick’s Market, Hadir Altoon, prepared a false invoice purporting to reflect a bill for $5,600 in catering services for a 2018 Superbowl party at City Hall. As known to Sollars, Dominick’s Market did not provide catering services worth

$5,600 and instead cashed the campaign check and gave some of the money to Sollars for Sollars’s personal use.

The bribery conspiracy count to which Sollars pleaded guilty carries a maximum sentence of 5 years’ imprisonment and a fine of up to $250,000. The wire fraud count carries a maximum sentence of 20 years’ imprisonment and a fine of up to $250,000.

“Sollars, as the Mayor of the City of Taylor, betrayed the trust of the citizens and the voters who supported him by awarding city contracts and spending campaign funds for his personal gain.

Today’s plea represents my office’s commitment to hold accountable those elected officials who place their own greed above of their duties to the citizens in the community,” U.S. Attorney Ison said.

“The former Mayor effectively eroded the faith of those who entrusted him with his office,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI’s Detroit Field Office. “No one is above the law and the FBI remains committed to combatting public corruption and following the facts wherever they may lead.”

The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Frances Carlson and Robert Moran.

DETROIT – A federal judge sentenced Michigan resident Deon Bell today for robbing a T-Mobile store in downtown Ann Arbor, United States 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 & Explosives (ATF).

On October 10, 2022, Deon Bell, 27, of Detroit, Michigan, walked into a T-Mobile store in downtown Ann Arbor in the middle of the afternoon. He pulled out what appeared to be a gun and demanded that the two young employees take him to the safe, where he stole approximately $9,000 in smartphones and smartwatches. Bell also demanded the money from the register, stealing an additional $381. Before leaving the store, Bell told the employees to “have a blessed day.” But little did Bell know that the employees were a step ahead and gave him a decoy or tracker phone along with real merchandise, allowing law enforcement to track Bell from the T-Mobile to the store where he resold the goods.

This was just the most recent conviction for Bell, who has a long criminal history: drug dealing, carrying a concealed weapon, and criminal sexual conduct 3rd degree, among others. U.S. District Court Judge Nancy G. Edmunds sentenced Bell to 8 ½ years in prison, his longest sentence to date.

“Violence has no place in our community,” U.S. Attorney Ison said. “Pulling a gun on people just trying to make a living is a cowardly act, and our office is committed to taking dangerous people off the streets.”

“Mr. Bell’s violent behavior has no place in our community. Actions have consequences. Period. End of story. The moral of this story is: Use an illegal firearm to commit violent acts, and you should pack your bags for a very long and hopefully “blessed” stay in prison,” said Special Agent in Charge James Deir.

This case was investigated by agents from ATF and is being prosecuted by Assistant U.S. Attorneys Meghan Bean, Erin Ramamurthy, and Hank Moon. This investigation started with the Ann Arbor Police Department and Michigan State Police, who remained valuable partners throughout this case. We thank them for their teamwork and assistance.

DETROIT – A Detroit resident was sentenced to 7 years and 10 months in prison for his role in a firearm trafficking ring, United States Attorney Dawn N. Ison announced today.

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

Antonio Jackson, age 24, received the sentence from the Honorable Mark A. Goldsmith, United States District Judge, in Detroit, Michigan. Judge Goldsmith also ordered that the defendant serve 3 years on supervised release after his release from federal custody.

At his guilty plea, Jackson admitted that he, along with two co-defendants, was a leader of a scheme in which the group used stolen credit card information to buy firearms online, which were then shipped to local firearm retailers for pickup. They enlisted several straw purchasers to pick up firearms. To get the firearms, the straw purchasers were directed to lie on the required ATF paperwork.

In total, Jackson admitted that the group illegally obtained at least 55 firearms through the scheme. Several of the firearms have been recovered by law enforcement, including some recovered from convicted felons.

Five of the straw purchasers involved in the trafficking ring have already pleaded guilty and were sentenced as follows:

• Garcia Moses, age 26 of Detroit: 54 months’ prison
• Emmanuel Stevens, age 23 of Detroit: 46 months’ prison
• Donte Turner, age 27 of Mt. Clemens: 30 months’ prison
• Eshon Rose, age 24 of Redford Charter Township: 18 months’ prison

“My office is committed to keeping guns out of the hands of convicted felons and will aggressively prosecute not just the leaders of these gun trafficking organizations, but also the straw purchasers that make these schemes possible. Lying when buying a gun for someone else is a serious crime that deserves just punishments like these.” U.S. Attorney Ison said.

“Accountability matters. Jackson and his able-bodied band of co-conspirators represent the worst of the worst in our community. They 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.”

One of the other leaders, Mike Chahoua, 25 of Detroit, pleaded guilty and faces sentencing on September 26, 2023. James Jackson, age 25 of Detroit, one of the straw purchasers, has also pleaded guilty and faces sentencing on September 28, 2023.

Charges remain pending against Chauncey Williams, 23, of Detroit, the third leader of the group, and Bishop Allen, age 26, of Detroit, another straw purchaser. They are set for jury trial at a later date. 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.

The case was investigated by special agents of the Bureau of Alcohol Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorneys Erin Ramamurthy and Andrew R. Picek.

DETROIT – Three individuals, including a pharmacist, doctor, and pharmacy technician, were charged in an Indictment for their alleged roles in a more than $7 million health care fraud scheme involving the diversion of expensive “specialty” prescription drugs, United States Attorney Dawn N. Ison announced.

Joining in the announcement were Devin J. Kowalski, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Special Agent in Charge Mario Pinto, Health and Human Services, Office of Inspector General (HHS-OIG), Special Agent in Charge Angie M. Salazar, Homeland Security Investigations (HSI), and Special Agent in Charge Orville Green, Drug Enforcement Administration.

Charged in the Indictment are:

•          Samer N. Youssef, age 56, of Troy, Michigan and Indian Rocks Beach, Florida.

•          Dr. Daoud Faraj, age 52, of Dearborn, Michigan; and

•          Houda Bazzi, age 34, of Dearborn, Michigan and Indian Rocks Beach, Florida.

The charges against Youssef, Dr. Faraj, and Bazzi include one count of health care fraud conspiracy and 15 counts of health care fraud, aiding and abetting. Youssef is also charged with 12 counts of money laundering.

According to the Indictment, beginning in 2016, and continuing through 2021, Youssef, a licensed pharmacist, worked with other people to identify expensive “specialty” drugs that he could re-sell. “Specialty” drugs are prescription medications that treat less common conditions, or have other unique features, and prescriptions for the drugs are usually filled by specialty pharmacies, not regular retail pharmacies, via the mail or courier. Some of the specialty drugs identified in the indictment were meant to treat cystic fibrosis and relapsing forms of multiple sclerosis.

Youssef worked with physicians in Southeast Michigan, including Dr. Faraj, to write medically unnecessary prescriptions for the specialty drugs Youssef wanted. Dr. Faraj wrote the medically unnecessary prescriptions in the names of “patients” who were individuals Youssef, Bazzi, or Dr. Faraj knew, including Medicare beneficiaries, and in the names of Youssef and Bazzi themselves, who were covered by Blue Care Network.

These defendants arranged for the medically unnecessary drugs to be shipped to addresses in southeast Michigan which were under their control.    Youssef, Dr. Faraj, and Bazzi caused Medicare and Blue Care Network to be billed for the medically unnecessary specialty medications.  Medicare and Blue Care Network then paid for the specialty medications, which Youssef, Bazzi, and others sold and shipped to domestic and foreign businesses at 100% profit.

“These licensed health care professionals are alleged to have defrauded Medicare and private insurers  of millions of dollars and lined their own pockets with funds meant to provide essential services to seniors and disabled individuals ,” said U.S. Attorney Ison. “My office is committed to prosecuting any medical professional who attempts to exploit taxpayer-funded programs or private insurers.”  

“Medical professionals and others who submit fraudulent claims to Medicare, undermine the solvency of our valuable Federal health care programs,” said Mario M. Pinto, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).  “HHS-OIG is committed continuing to working with our law enforcement partners to ensure that those alleged of defrauding these programs are held accountable.”

“These defendants allegedly compromised the integrity of the healthcare systems by taking millions of dollars that should have gone to providing quality care to patients with true medical needs,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI and our law enforcement partners will not relent in our efforts to investigate and bring to justice anyone who engages in this type of criminal behavior.”

“HSI is committed to working with our partners to identify and investigate criminal activity that defrauds the American taxpayer,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “This type of fraud hurts all members of our community but is especially dangerous to the elderly and those who rely on these programs for treatment of serious illnesses.”

An indictment is only a charge and is not evidence of guilt.  The burden is on the government to prove guilty beyond a reasonable doubt.

The case is being prosecuted by Assistant United States Attorney Andrew J. Lievense, and Assistant United States Attorney Jessica Nathan is handling related forfeiture matters. The investigation is being conducted jointly by the FBI, HHS-OIG, HSI, and the DEA.

DETROIT – A Las Vegas man who sex trafficked children in metro-Detroit while visiting the area in December 2020 was sentenced to 12 years and 6 months in prison, United States Attorney Dawn N. Ison announced today.

Ison was joined in the announcement by Acting Special Agent in Charge Devin J. Kowalski, of the Federal Bureau of Investigation, Detroit Field Division.

Jquon Wroten, 31, pled guilty to two counts of sex trafficking of a minor in April 2023. Wroten was sentenced today by United States District Judge Bernard A. Friedman.

Law enforcement first began investigating Wroten while attempting to locate two minor females who had run away from the Lansing area in late 2020. A relative of one of the minors contacted law enforcement with information and expressed fears that the minors were being trafficked in the Detroit area. Law enforcement recovered the minors from a motel room in Southfield, Michigan in December 2020 and learned that Wroten had recruited the minors to work for him after meeting them in a local motel while he was in town. Wroten and an adult female associate took the minors to a local beauty supply store and bought items in an effort to make them look older. Wroten then set up a commercial sex date for the minors at a residence in metro-Detroit and drove the minors to the date, where they engaged in commercial sex with multiple men. Wroten took proceeds from the sex trafficking for his own use.

“The sex trafficking of children is a hideous crime that preys on some of our district’s most vulnerable citizens,” said U.S. Attorney Ison. “The court’s sentence today is a just punishment and will prevent the defendant from further victimizing children here or anywhere else.”

“Protecting young people from dangerous predators is a top priority for the FBI in Michigan and across the country,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI in Michigan. “Mr. Wroten in an example of how manipulative these criminals can be. I commend the work of the special agents, deputies, police officers, and prosecutors who worked to make our children safer by ensuring he remains behind bars for a significant period of time.”

This case was investigated by the FBI Detroit Division, FBI Las Vegas Division, FBI San Francisco Division, SEMTEC (Southwest Michigan Trafficking and Exploitation Crimes), and State of Michigan Children’s Protective Services.

The case was prosecuted by Assistant U.S. Attorneys Meghan Sweeney Bean and Eaton Brown.

DETROIT – John David was sentenced today to 24 months in federal prison after pleading guilty to bribing Albert Morrison, a former School Board President of Madison District Public Schools, United States Attorney Dawn N. Ison announced.

Ison was joined in the announcement by Devin J. Kowalski, Acting Special Agent in Charge of the Federal Bureau of Investigation, Charles Miller, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division, and John Woolley, Special Agent in Charge of the Department of Education, Office of Inspector General.

David, age 65, was sentenced after pleading guilty before the Honorable Laurie Michelson to Conspiracy to Commit Federal Program Bribery from 2014 through 2018 and Bribery Concerning Programs Receiving Federal Funds. David owned a building maintenance and reconstruction company, Emergency Restoration (a/k/a Emergency Reconstruction), that was awarded over $3.1 million in maintenance and construction projects in the Madison District Public Schools. 

David admitted making payments of more than $561,000 to Morrison in order to secure the work for the Madison District. Albert Morrison pleaded guilty on April 25, 2023, and is currently scheduled to be sentenced on August 28, 2023.

“Our community deserves school systems free of corruption,” said United States Attorney Dawn N. Ison.  “This prosecution and today’s sentence will help ensure that public school officials conduct themselves with the highest level of honesty, integrity, and transparency and put the interests of our children first.” 

“Mr. David received work from the Madison District Public School Board by bribing someone in a position of power which corrupted the process by which contracts were awarded,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI, IRS, and Department of Education Office of Inspector General will continue to work cooperatively to hold defendants like this one accountable for their crimes.”

“Individuals who commit financial fraud of this magnitude and with this degree of dishonesty and deceit, deserve to be punished to the fullest extent of the law,” said Special Agent in Charge Charles Miller, Internal Revenue Service – Criminal Investigation, Detroit Field Office. “IRS-Criminal Investigation, along with our law enforcement partners and the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting those individuals who seek to use their positions of power to line their own pockets.”

The investigation of this case was conducted by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the Department of Education. It was prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, Karen Reynolds, and Gjon Juncaj.

An Indiana man will make his initial appearance at the federal district court in Detroit today for allegedly sending a threatening communication to an election worker in Michigan. 

According to court documents, on or about Nov. 10, 2020, Andrew Nickels, 37, of Carmel, allegedly called the victim, who was the clerk of a local municipality, and left a voicemail in which 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…Guess what, you’re gonna pay for it, you will pay for it...[T]en million plus patriots will surround you when you least expect it, and your little infantile Deep State security agency has no time to protect you because they’ll be bought out and we’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.”

Nickels is charged with one count of making a threatening interstate communication. If convicted, he faces a maximum penalty of five years in prison.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Dawn N. Ison for the Eastern District of Michigan, and Acting Special Agent in Charge Devin Kowalski of the FBI Detroit Field Office made the announcement.

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 O. 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 Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the 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 here: 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 indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

DETROIT – A federal jury in Detroit found two California residents guilty yesterday of conspiring to launder money, United States Attorney Dawn N. Ison announced today.

Ison was joined in the announcement by Orville O. Greene, Special Agent in Charge of Drug Enforcement Administration, and Charles E. Miller, Special Agent in Charge of the Internal Revenue Service, Detroit Field Divisions.

Convicted were Teeauna White, 37, and Robin Herndon, 43.  The four-week trial was conducted before United States District Judge Terrence Berg.

White and Herndon, both of California, participated in a money laundering conspiracy that was led by convicted drug trafficker Maurice McCoy. McCoy was sentenced in March 2023 to 22 years after pleading guilty to drug and money laundering conspiracies.

Evidence presented during the trial established that McCoy kept 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 the 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, Indiana, and Baltimore, Maryland where the organization also operated. All identified couriers and large-scale drug customers who were indicted pleaded guilty.

The evidence further established that White, who lived with McCoy, lived lavishly off the drug conspiracy’s proceeds, purchasing a Bentley and Mercedes, expensive jewelry, and a half a million-dollar home in the greater Los Angeles area. Herndon assisted McCoy and White by opening multiple bank accounts through which money from the drug conspiracy was used to purchase McCoy and White’s home.

“I salute the innovative investigative work  of our federal law enforcement partners at the DEA and IRS that unraveled this drug conspiracy and helped tracked down all of the individuals who profited from the conspiracy,” stated U.S. Attorney Dawn Ison.   “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 their crimes.” 

Today’s announcement should serve as a clear warning to anyone who would use the cover of legitimate business to conceal proceeds derived from narcotics trafficking. Money launderers will be held to the same level of accountability as the drug traffickers they’re partnering with,” said Special Agent in Charge Orville.

“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs,” said Charles Miller, Special Agent in Charge, IRS Criminal Investigation, Detroit Field Office.  “Without these ill-gotten gains, the traffickers cannot finance their organizations.  IRS-CI will continue to provide our financial expertise in narcotics investigations, as we work alongside the US Attorney’s Office and our law enforcement partners to bring criminals to justice.”

Sentencing is pending for both defendants.

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.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

DETROIT - A Commerce Township resident pleaded guilty today to orchestrating a fraud scheme involving approximately $851,000 in loans intended to help small businesses stay afloat during the Covid-19 pandemic, United States Attorney Dawn N. Ison announced today.

Joining in the announcement was Angie M. Salazar, Special Agent in Charge of the Detroit Field Office of Homeland Security Investigations (HSI).

Ryan Carruthers, 32, entered a plea of guilty to one count of wire fraud before United States District Judge Paul D. Borman. The guilty plea arose out of Carruthers’ participation in a wide-ranging scheme to  fraudulently obtain loans from two pandemic relief programs overseen by the Small Business Administration (SBA). 

“Ryan Carruthers stole nearly a million dollars from programs intended to help our community weather an unprecedented national crisis. Every dollar that went to Mr. Carruthers is a dollar that did not go to a small business that needed help during the pandemic,” said United States Attorney Ison. “My office takes pandemic fraud extremely seriously, and we will continue to dedicate resources to bringing those who perpetrated such frauds to justice.”

“This case shows the efforts some will take to defraud their fellow community members and taxpayers,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “Today, three years after the start of the pandemic, we are still investigating fraud and working to ensure that those who received this money did so honestly and justly. The message should be clear for anyone who stole these funds for personal enrichment, our HSI agents and partners are committed to holding you accountable.”

According to the plea agreement, in approximately April 2020, Carruthers began to submit electronic applications for pandemic relief loans in the names of various business entities he purported to own and control. Between April 2020 and April 2021, Carruthers submitted 12 loan applications through the ‘’Paycheck Protection Program,” (PPP), which was an SBA-administered program that provided forgivable loans to businesses to encourage them to keep workers employed during the pandemic. Carruthers also submitted a loan application under the SBA’s ‘’Economic Injury Disaster Loan Program” (EIDL), which was a program that provided low-interest financing to businesses adversely affected by the pandemic.

According to the plea documents, the loan applications described above contained numerous material misrepresentations and false statements. Carruthers’s business entities were shell businesses that existed on paper only; they had no revenue, employees, or ongoing operations of any sort. However, Carruthers claimed in his applications that each of these entities had between three and 15 employees. The average monthly payroll amounts included in the applications were fictitious, as were representations about how the money would be spent.

Carruthers received approximately $851,963 in proceeds from the 13 loans that were funded as part of his scheme. According to the plea documents, Carruthers used these fraudulently obtained monies to, among other things, pay off the mortgage on his home, purchase a personal watercraft, and pay various personal expenses.

Sentencing is set for December 5, 2023 before Judge Borman.

The case is being prosecuted by Assistant United States Attorney John K. Neal. The investigation was conducted by HSI.

DETROIT - Eleven residents of southeast Michigan have been charged in a 23-count indictment for their alleged role in a multi-million-dollar unemployment insurance fraud scheme targeting funds set aside for unemployment assistance during the COVID-19 pandemic, announced United States Attorney Dawn N. Ison.

Joining in the announcement were Department of Labor – Office of the Inspector General (DOL-OIG) Special Agent-in-Charge of the Great Lakes Region, Irene Lindow, and Acting Special Agent in Charge Devin J. Kowalski of the Detroit Feld Office of the Federal Bureau of Investigation (FBI).

Charged are Marcellus Dunham, 23, of Redford, Jaylin Davis, 22, of Detroit, Daniel Holt, 21, Day’on Holt, 22, both of Detroit, Daveontae White, 24, of West Bloomfield, Armani Haller, 22, of Clinton Township, Aaniya Carroll, 22, of Detroit, Laron Stroud, 23, of Detroit, Jaylin Qualls, 23, of Harper Woods, Cheikh Sene, 23, of Southfield, and Deleonte Rogers, 23, of Westland. Each defendant is charged with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.

According to the indictment, the eleven defendants used stolen personal identifying information of other individuals to file fraudulent claims for pandemic unemployment assistance in multiple states. The indictment alleges that the defendants illegally obtained over $4.5 million in government funds over the course of their scheme.

“My office won’t cease our efforts to hold accountable those who used a global pandemic to enrich themselves at the expense of taxpayers,” stated U. S. Attorney Dawn Ison. 

“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance programs. We will continue to work with our law enforcement partners to aggressively investigate these types of allegations”, said Irene Lindow, Special Agent in Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

“Unfortunately, many people believed they could defraud unemployment programs during the global pandemic and never face the consequences,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI’s Detroit Field Office. “This investigation proves the FBI, and our state and federal partners, will continue to investigate and bring these criminals to justice no matter how long it takes.”

The defendants face up to twenty years in prison based on the wire fraud and wire fraud conspiracy charges, and a mandatory two-year prison sentence for aggravated identity theft.  

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 case is being prosecuted by Assistant United States Attorneys Ryan Particka and Sarah Youngblood. The investigation is being conducted jointly by the FBI, DOL- OIG, Department of Homeland Security, Homeland Security Investigations, and the State of Michigan Unemployment Insurance Agency.

The U.S. Attorney’s Office for the Eastern District of Michigan will join community organizers, neighbors, and law enforcement partners to participate in National Night Out events on August 1, 2023. During this year’s National Night Out, U.S. Attorney Dawn N. Ison will attend a community event in Saginaw at the Saginaw Township Soccer Complex.  The event, which will take place from 6pm-9pm will allow for community members to explore various police, fire and emergency medical services apparatus with hands-on tours of police cars, fire trucks, ambulances and medical aircraft.  In addition, other employees of the U.S. Attorney’s Office will attend community events being held at police precincts across the city of Detroit.

“National Night Out is yet another opportunity to build trust in the communities we serve,” said U.S. Attorney Dawn N. Ison.  “We value these opportunities to engage and strengthen the important bonds between our citizens and the law enforcement community.”

National Night Out is an annual community-building campaign that promotes partnerships and camaraderie between law enforcement and the communities they serve to make our neighborhoods safer places to live. Millions take part in National Night Out across thousands of communities throughout the country on the first Tuesday of August in most areas of the country.

National Night Out was established in 1984 with funding from the Bureau of Justice Assistance of the U.S. Department of Justice. The program is administered by the National Association of Town Watch, a nationwide non-profit organization.

Coordinated by local law enforcement and trained volunteers, National Night Out provides a great opportunity to bring police and neighbors together under positive circumstances. Neighborhoods host block parties, cookouts, festivals, parades, safety demonstrations, seminars, youth events, visits from emergency personnel, and more. National Night Out sends a message that neighbors are united and working together to keep their communities and each other safe.

For more information, visit https://natw.org/.

DETROIT – A Pontiac man was indicted by a federal grand jury on charges of Interference with Commerce by Robbery, Use of a Firearm in Relation to a Crime of Violence and being a Felon in Possession of a Firearm relating to an armed robbery and attempted armed robbery which occurred in the city of Pontiac, United States Attorney Dawn N. Ison announced today.

Ison was joined in the announcement by Special Agent in Charge James Deir of the ATF’s Detroit Division and Sheriff Michael Bouchard of the Oakland County Sheriff’s Office.

Christopher Bey, 48, appeared in federal court this afternoon and was arraigned on the charges before United States Magistrate Judge Kimberly G. Altman. 

“Removing violent offenders from our community is one of my office’s top priorities,” stated U.S. Attorney Dawn Ison.  “We will not stop being laser focused on aggressively prosecuting dangerous individuals who persist in terrorizing our citizens.”

“Use an illegal firearm to rob 2 stores and discharge that firearm, and the ATF will exhaust every resource to identify you and to hold you accountable for gun violence.  The message is simple: Actions have consequences. If you use an illegal firearm to commit gun violence in our community…. pack a lunch. You are going to be unavailable for an extended period of time,” said ATF Special Agent in Charge James Deir.

“We appreciate the teamwork with our federal partners and the U.S. Attorney’s Office. If you are a violent criminal, we will work tirelessly to hold you accountable and do everything in our power to keep our community safe,” said Sheriff Bouchard.  “Working together magnifies resources and increases the opportunity for successful prosecution.”

According to the indictment, Bey is alleged to have robbed a Boost Mobile store in the city of Pontiac on February 4, 2023.  After entering the store, Bey allegedly brandished a firearm and demanded money from the store employee. During the robbery, Bey fired the weapon twice.

The indictment also alleges that on March 24, 2023, Bey attempted to rob a Dollar General Store in the city of Pontiac.  Bey handed a store employee a note while pointing a gun at him. Bey then ordered the employee to the back of the store and directed him to handcuff himself.

Bey was also charged with felon in possession of a firearm. The indictment alleges that, during the robbery investigations, law enforcement observed Bey’s social media posts of himself holding a firearm with his face obscured by a ski mask. Law enforcement was able to use other images from his social media accounts to determine Bey’s identity.

On July 26, 2023, the Pontiac Gun Violence Task Force (GVTF), assisted by, Oakland County Sheriff’s Office K9 Unit, Customs Border Protection - Aviation Enforcement, and the Detroit Police Department, arrested Christopher Lee Bey.  Bey has been in custody since that arrest. 

The GVTF was established by the ATF and the Oakland County Sheriff’s Office. The GVTF is tasked with investigating the unlawful possession of firearms and the use of firearms to commit violent crimes within Pontiac, Oakland County, and the Eastern District of Michigan.

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 is being prosecuted by Assistant United States Attorney Nicholas McIntyre and Matthew Roth.