Eastern District of Michigan

DETROIT - Brandon Robinson, 42, of Detroit, was sentenced to 92 months in federal prison for orchestrating overlapping federal student aid and PPP fraud schemes, announced Assistant Attorney General Colin M. McDonald of the Department of Justice’s National Fraud Enforcement Division and United States Attorney Jerome Gorgon, Jr.

U.S. District Court Judge Laurie J. Michelson ordered that Robinson, the ringleader of the scheme, serve three years of supervised release following his term of imprisonment and pay restitution as follows: 

• $10,521,189.05 to the Department of Education
• $1,357,493.00 to various state workforce agencies

Michelson sentenced Robinson following his guilty pleas to conspiracy to commit wire fraud and aggravated identity theft.  Alongside Robinson, Antonio Robinson, 37, of Ferndale was sentenced to 84 months imprisonment and Joshuan Porter, 36, of Detroit was sentenced to 55 months imprisonment.

“These defendants stole more than $16 million from federal programs designed to assist students and unemployed Americans,” said Assistant Attorney General Colin M. McDonald of the Department of Justice’s National Fraud Enforcement Division. “The defendants enrolled straw students across more than 100 schools in more than 20 states to collect these proceeds. They now face prison time for their egregious actions. We commend the U.S. Attorney’s Office for the Eastern District of Michigan for its outstanding work prosecuting this case.”

“These defendants thought federal programs were easy money. They were wrong,” said Gorgon.  “We are making sure that federal program fraudsters bear the consequences.”

Gorgon was joined in the announcement by Scott Wingle, Acting Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Central Regional Office, and Anthony P. D’Esposito, Inspector General, U.S. Department of Labor Office of Inspector General.

“I’m proud of the work of OIG special agents and our law enforcement colleagues for shutting down yet another fraud ring and holding these fraudsters accountable for their criminal actions,” said Scott Wingle, Acting Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Central Regional Office. “The OIG is committed to fighting student aid fraud and we will continue to aggressively pursue those that participate in these types of crimes.”

“Brandon Robinson exploited two taxpayer-funded assistance programs designed to support individuals in need of unemployment benefits or Federal Student Aid—programs that Americans depend on. Today's sentencing highlights the commitment by my agency and Vice President Vance’s Task Force to Eliminate Fraud to aggressively pursue fraudsters and hold them accountable,” said Anthony P. D’Esposito, Inspector General, U.S. Department of Labor. “We will continue to pursue those individuals that attempt to exploit the unemployment insurance system and other programs designed to support hardworking Americans. Accountability is coming.”

The case was jointly investigated by agents from the Department of Education Office of the Inspector General and the Department of Labor Office of the Inspector General, with assistance from the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ryan A. Particka. 

About the Case: 

According to court documents, Brandon Robinson was responsible for leading a years-long scheme to obtain fraudulent Federal Student Aid (FSA) benefits involving so-called “straw students.” Antonio Robinson and Joshuan Porter took direction from Robinson and served as middlemen, ferrying information and kickbacks between Brandon Robinson and the fake students. 

The three submitted fraudulent FSA claims for more than 1,200 individuals, involving over 100 schools in more than 20 states, between January 2015 and November 2023.  They were awarded more than $16M in FSA benefits and collected more than $10M of it before being caught. 

The three also worked together to file over 100 fraudulent claims for pandemic unemployment assistance between March 2020 and June 2021, Collecting around $1.3M in false unemployment benefits. 

About the National Fraud Enforcement Division: On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.   

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DETROIT – Jawan Simpson, 37, a tax preparer and Certified Public Accountant (CPA), pleaded guilty today to orchestrating a scheme to defraud the Small Business Administration’s Paycheck Protection Program (PPP), announced United States Attorney Jerome F. Gorgon, Jr. During the COVID-19 pandemic, the federal government established the PPP to help small businesses keep their workers employed and cover essential operating costs. Simpson pleaded guilty to one count of wire fraud, which carries a maximum penalty of 20 years in prison.

Gorgon was joined in the announcement by Special Agent in Charge Jennifer Runyan, Federal Bureau of Investigation, Detroit Field Office and Basil Demczak, Special Agent in Charge of Amtrak Office of Inspector General’s Central and Western Field Offices.

“Jawan Simpson abused the trust placed in him as a tax preparer to defraud the American people of more than $2 million,” said U.S. Attorney Jerome F. Gorgon Jr.

“Exploiting a federal relief program during a national crisis for personal financial gain is a serious betrayal of the public trust. Today’s guilty plea represents an important step toward accountability,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “I am grateful for the outstanding work of our FBI Oakland County Resident Agency and the Amtrak Office of Inspector General’s Central and Western Field Offices. Their diligence and collaboration helped uncover this scheme and protect the integrity of programs funded by American taxpayers.”

“We hope this guilty plea sends a clear message that those who exploit emergency relief programs for personal gain will be held accountable,” said Basil Demczak, Special Agent in Charge of Amtrak Office of Inspector General’s Central and Western Field Offices. “We appreciate the strong partnership among the investigative agencies and prosecutors involved and remain committed to pursuing those who defraud taxpayer-funded relief programs.”

According to the plea agreement, Simpson promised family members, friends, and tax preparation clients (including Amtrak employees) that, in exchange for a fee of $2,000-$3,000, he could help them qualify for pandemic relief loans that would be forgiven by the federal government. Simpson ultimately filed 111 PPP loan applications that contained materially false information. In support of those fraudulent applications, Simpson created bogus documents, including fake tax returns. The government asserts in the plea agreement that Simpson’s fraud resulted in the loss of $2.3 million in government funds.

The case is being prosecuted by Assistant U.S. Attorney Davin M. Reust.  The case is being investigated by the Amtrak Office of Inspector General and FBI. 

DETROIT – Jabari Long, 46, was sentenced today to 24 months in federal prison after having pleaded guilty to executing a multi-million-dollar fraud scheme involving pandemic assistance funds, United States Attorney Jerome F. Gorgon, Jr. announced.

Gorgon was joined in the announcement by Acting Special Agent in Charge Jeremy Pierczynski, Homeland Security Investigations Detroit, and Todd Strom, Acting Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation.

Long previously pleaded guilty to a charge of conspiring to commit wire fraud. According to court records, Long used a contracting business called “Priceless Preservations Construction” to obtain a fraudulent Paycheck Protection Program loan in the amount of $2,187,000 and a fraudulent Economic Injury Disaster Loan in the amount of $150,000. Long claimed the business had 50 employees and an average monthly payroll of $875,000. In truth, Priceless Preservations Construction had few, if any, employees and little to no payroll expenses. Records show that within weeks of receiving the fraudulently-obtained pandemic assistance funds, Long used a portion of them to buy a four-bedroom home in the exclusive Beverly Hills community. In pleading guilty, Long also admitted that he submitted false tax documentation to obtain his loan funding.

“Jabari Long falsely claimed to employ dozens through his so-called company ‘Priceless Preservations.’ But the only thing he preserved through this fraud was his greed. And his scheme wasn’t priceless at all; it carried a significant price he’s now being forced to pay,” stated U.S. Attorney Gorgon.

“Legitimate businesses that followed the rules and relied on pandemic-assistance programs in good faith deserve protection from those who seek to abuse those programs for personal enrichment,” said HSI Detroit Acting Special Agent in Charge Jeremy Pierczynski. “When fraudsters submit false information, invent payrolls, or misrepresent their operations to steal taxpayer-funded assistance, they undermine public trust and divert resources from the businesses and workers these programs were designed to support. HSI remains committed to working with our law enforcement partners to identify, investigate, and root out those who exploit federal programs to line their own pockets.”

“Jabari Long used fake tax documents and manufactured counterfeit business information to fraudulently obtain more than $2 million in pandemic relief funds,” said Todd Strom, Acting Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation. “IRS-CI special agents are highly skilled at following the money and uncovering the financial evidence behind complex fraud schemes. We will continue working with our law enforcement partners to protect taxpayer dollars and hold accountable those who exploit federal programs for personal gain.”

Long was also ordered to pay restitution in the amount of $2,187,500 and serve three years on supervised release following the completion of his custodial sentence. 

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

The case was investigated by Homeland Security Investigations and IRS-Criminal Investigation. It was prosecuted by Assistant United States Attorney Andrew J. Yahkind. 

DETROIT – Hasan “Lucas” Seyhun, 45, of Miami, Florida, pleaded guilty yesterday to conspiracy to commit healthcare fraud for his role in a wide-ranging, nationwide scheme that logged more than $500 million in fake claims to government-backed healthcare programs, United States Attorney Jerome F. Gorgon Jr. announced.

“At a time when Americans were scared for their families and their futures, Hasan Seyhun saw an opportunity to turn a national crisis into his own personal payday,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Instead of providing the American people with the assistance they needed during a critical time, Seyhun and his colleagues exploited their trust, and lined their pockets from fraudulent insurance claims. The Fraud Division will not let up in its relentless pursuit of COVID era fraudsters.” 

“Ripping off the American taxpayer is bad enough. Using the fear and isolation of the COVID pandemic to do it is sickening," said United States Attorney Jerome F. Gorgon Jr. “Not only did Seyhun and his co-conspirators defraud the American public of hundreds of millions of dollars’ worth of fake services, but they were so confident in their scheme that they routinely submitted claims for payment before test kits were even delivered to the customer.” 

According to court documents, Seyhun served as the Chief Operating Officer of New York-based Fast Lab Technologies, LLC (Fast Lab), which offered to individuals “no cost” Covid‑19 tests during the pandemic that could be ordered online through the company’s website. 

Fast Lab then used customers’ insurance information to falsely bill for services that were never provided, including: 

• False claims that antigen tests had been observed by medical professionals;
• That saliva samples had been collected by medical personnel; 
• And that PCR testing had been conducted on those samples. 

In his plea agreement, Seyhun also admitted that he conspired with previously charged defendants Cemhan “Jimmy” Biricik, Fast Lab’s CEO, and Dr. Martin Perlin, Fast Lab’s Medical Director, to carry out the scheme.

Seyhun also acknowledged that in his role as COO he orchestrated the submission of millions of dollars in fraudulent healthcare claims, resulting in at least $35M in illicit payments. Seyhun has agreed to a forfeiture money judgment in the amount of $4,313,153, representing the amount of money he personally received from the scheme. 

"A scheme of this magnitude undermines public trust and diverts critical healthcare dollars away from the people and programs who need it most. Today’s guilty plea is an important step toward accountability for conduct that resulted in hundreds of millions of dollars in fraudulent billings,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “The FBI will continue working with our law enforcement and prosecutorial partners to track down complex healthcare fraud schemes and hold those who conduct them fully accountable.”

“Laboratories that submit false claims for medical testing and services put profit over patient care at the taxpayers’ expense,” said OPM-OIG Special Agent in Charge Derek M. Holt. “We commend our investigative staff as well as our colleagues and law enforcement partners for their dedicated efforts to hold these companies accountable and safeguard the integrity of the Federal Employees Health Benefits Program.” 

“Today’s guilty plea makes clear that exploiting a public health emergency for personal gain will be met with decisive action,” said Special Agent in Charge Thomas Ethridge of the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG). “This case highlights the strength of our interagency partnerships and the unwavering commitment of federal, state, and local investigators to protect patients and safeguard taxpayer funded programs. When individuals choose fraud over the public good, they will be held accountable.”

“All the defendants in this case had one thing in common – they were motivated by greed,” said Todd Strom, Acting Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation. “Their pursuit of money, and the privileges it brings, led Mr. Seyhun and his associates to take advantage of the healthcare system and misuse funds intended for COVID-19 testing. Thanks to the dedication and financial expertise of IRS-CI special agents, who worked closely with our law enforcement partners, this scheme was brought to light, and these criminals will now face the consequences of their actions.”

Gorgon was also joined in the announcement by:

• Daniel Aronowitz, Assistant Secretary of Labor for the Employee Benefits Security Administration (EBSA);
• Jessica Herrington, Acting Special Agent in Charge, Defense Criminal Investigative Service (DCIS); 
• Todd E Strom, Acting Special Agent in Charge, Detroit Field Office, Internal Revenue Service - Criminal Investigation (IRS-CI);
• Anthony P. D’Esposito, Inspector General, U.S. Department of Labor General (DOL-OIG); 
• Felicia B. George, Inspector in Charge, U.S. Postal Inspection Service (USPIS); 
• Owen Cypher, U.S. Marshal for the Eastern District of Michigan; 
• Dana Nessel, Michigan Attorney General

Offices and Divisions also contributing the case include: 

• U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); 
• U.S. Office of Personnel Management Office of the Inspector General (OPM-OIG); 
• The Michigan Attorney General’s Medicaid Fraud Control Unit (MFCU).

This case is being prosecuted by Assistant U.S. Attorneys Regina R. McCullough and Ryan A. Particka. 

About the National Fraud Enforcement Division: On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.   

DETROIT - United States Attorney Jerome F. Gorgon Jr. announced today that Lifeview Group, Inc., together with its corporate predecessors and affiliates (Lifeview), agreed to a settlement of $5,059,808.00 to resolve allegations that they violated the False Claims Act. 

Gorgon was joined in the announcement by AbilityOne Commission Chairperson Christina Brandt, Special Agent in Charge Jorge Richardson of the U.S. General Services Office of Inspector General Midwest Investigations Division and Acting Special Agent in Charge Jessica Herrington of the Department of Defense Office of Inspector General (DoD OIG), Defense Criminal Investigative Service (DCIS), Northeast Field Office

Lifeview was involved in the Department of War’s Defense Manpower Data Center Enterprise Information Technology Services contract (EITS).  The contract was awarded through the AbilityOne Program, a federal program enacted to create employment opportunities for blind or significantly disabled individuals.  The program is administered by the Committee for Purchase From People Who Are Blind or Severely Disabled, operating as the U.S. AbilityOne Commission.  To participate in the AbilityOne Program, contractors must perform 75% of the labor related to “the[ir overall] production of products and… provision of services” with labor by individuals who are the blind or significantly disabled.  This is known as the direct labor hour ratio requirement. Contractors must also meet contract-specific direct labor hour ratios, and the AbilityOne Commission can approve lower direct labor hour ratios on a project-by-project basis.  The United States investigated allegations that Lifeview did not meet the direct labor hour ratio requirement for the EITS contract, and this settlement resolves allegations that Lifeview made false statements to the AbilityOne Commission about Lifeview’s performance of the EITS contract in the period leading up to the renewal of the EITS contract on June 17, 2019.

“The False Claims Act is an important tool for combatting procurement fraud.  Our office will vigorously investigate entities that make false statements about their qualifications to obtain or keep government contracts,” said U.S. Attorney Jerome F. Gorgon Jr. for the Eastern District of Michigan. 

“The AbilityOne Commission maintains a zero-tolerance policy toward any action, omission, or misrepresentation that undermines the integrity of the AbilityOne Program,” said Commission Chairperson Christina Brandt. “The Commission will promptly and thoroughly address allegations of wrongdoing to ensure that isolated incidents are appropriately resolved. Working with the Department of Justice and our partners, the Commission and its Office of Inspector General remain committed to accountability, transparency, and responsible stewardship of taxpayer dollars.”

“False or misleading statements about work related to a program intended to expand employment opportunities for individuals with disabilities should not be tolerated,” said Special Agent in Charge Jorge Richardson of the U.S. General Services Office of Inspector General Midwest Investigations Division. "We will continue working with federal partners to uncover misconduct, protect public resources, and hold accountable those who secure government contracts by providing false information."   

“The AbilityOne program is designed to expand meaningful employment opportunities for blind and disabled workers, and they depend on the honesty and accountability of participating contractors,” said Acting Special Agent in Charge Jessica Herrington of the Department of Defense Office of Inspector General (DoD OIG), Defense Criminal Investigative Service (DCIS), Northeast Field Office.  “As the law enforcement arm of the DoD OIG, DCIS remains committed to ensuring that contractors fulfill their obligations and provide accurate information to federal oversight bodies. This settlement underscores our dedication to protecting taxpayer funds and the importance of programs that broaden access to employment.”

The settlement resolves a civil lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and to share in a portion of the government’s recovery.  The lawsuit was filed in the Eastern District of Michigan and is captioned United States ex rel. Hruska v. Global Connections to Employment, Inc., Case No. 17-13804 (E.D. Mich.).

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 U.S. AbilityOne Commission, the U.S. Department of War - Office of the Inspector General, and the U.S. General Services Administration - Office of the Inspector General.  The matter was handled by Assistant United States Attorney John Postulka 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 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 FraudNet hotline at 1-800-424-5454.

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

DETROIT – Victoria Viktorovna Aquilina, 43, a Russian national, was charged today with illegally voting in the 2024 presidential election, United States Attorney Jerome F. Gorgon Jr. announced.

Gorgon was joined in the announcement by Jared Murphey, Special Agent in Charge of Homeland Security Investigations in Detroit.

Aquilina was charged in an Information with voting by an alien.

Aquilina first entered the United States using her Russian passport over 20 years ago, on a visa obtained through an au pair program. Aquilina never became a naturalized citizen. But she voted in-person in the 2024 presidential election.

“American elections are for American citizens. And foreigners who undermine our election integrity threaten our republican institutions,” said U.S. Attorney Gorgon.  

“Election integrity is national security,” said HSI Detroit Special Agent in Charge Jared Murphey. “If you are not a United States citizen, you do not get to vote in American elections, and if you do, HSI will work relentlessly with our partners to identify you, investigate you, and bring you before the justice system. HSI Detroit will not tolerate unlawful conduct that undermines public confidence in our democratic process.”

This case is being investigated by Homeland Security Investigations.

An information is only a charge and not evidence of guilt. A defendant is presumed innocent. It is the government’s burden to prove guilt beyond a reasonable doubt.

DETROIT – This week, a federal judge sentenced a Venezuelan illegal alien to 48 months in federal prison. The illegal alien pleaded guilty in May to assaulting a federal law enforcement officer and grabbing the officer’s firearm, announced United States Attorney Jerome F. Gorgon, Jr.

Gorgon was joined in the announcement by Jared Murphey, Special Agent in Charge of Homeland Security Investigations Detroit and ICE Enforcement and Removal Operations Detroit acting Field Office Director Kevin Raycraft.

The court sentenced Arnoldo Jose Marquez-Pulido, 33, an illegal alien from Venezuela who illegally entered the United States via the US-Mexico border in April 2024. Despite having no visa or other travel document that would allow him to lawfully enter the United States, the government in 2024 paroled Marquez-Pulido into the United States. 

According to court documents, law enforcement officers assigned to the Homeland Security Task Force (HSTF) were conducting surveillance of businesses in the Utica area after learning that illegal aliens were working as delivery drivers. While on surveillance, agents observed a car registered to Marquez-Pulido depart a parking lot of one of the businesses.  Agents activated their vehicle emergency equipment and attempted a traffic stop.  Marquez-Pulido briefly stopped before fleeing at a high rate of speed.  To avoid a dangerous vehicle chase, agents deactivated their emergency equipment and continued to follow Marquez-Pulido at a safe distance.  When Marquez-Pulido returned to the business location, he fled on foot and ignored a Task Force agent’s commands to stop, forcing the agent to tackle Marquez-Pulido as he fled into the business. Marquez-Pulido forcibly resisted arrest, assaulting the agent by striking him in the face with his elbow. Marquez-Pulido then reached for and removed the agent’s service firearm, a Glock Model 19 pistol, from the agent’s holster and briefly wielded it before losing control of the weapon. Additional Task Force officers and agents arrived on scene and recovered the firearm. Marquez-Pulido continued to forcibly resist and had to be restrained. Marquez-Pulido injured one agent’s elbow, knees, hands, and face. Another agent injured his knee. Both agents required hospital treatment.

“This illegal alien sped away from federal agents and then created a potentially deadly fight when he grabbed an agent’s gun. Our federal agents put their lives on the line every day to protect Americans against dangerous illegal aliens like this man. He should never have been in our country,” said U.S. Attorney Gorgon. 

“Marquez-Pulido turned a lawful enforcement action into a violent confrontation when he assaulted a federal agent and grabbed for a gun,” said HSI Detroit Special Agent in Charge Jared Murphey. “That kind of brazen disregard for law enforcement and public safety will be met with consequences. HSI Detroit and our partners will continue to track down those who threaten our communities and put agents’ lives at risk.”

This case was investigated by Homeland Security Investigations. 

This case is part of Operation Take Back America, a nationwide initiative that Marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.

DETROIT, MI – The United States Attorney’s Office for the Eastern District of Michigan today announced charges, pleas and sentences as part of a nationwide enforcement action led by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration (SBA), and the SBA Office of Inspector General targeting fraud in the SBA’s Paycheck Protection Program (PPP). The Eastern District of Michigan was a key participant in this surge effort.  

From June 12 to September 1, 2026, federal prosecutors across the country facilitated fraud enforcement actions spanning over 160 criminal defendants, including approximately 80 newly charged defendants, reaching approximately $245 million dollars in intended loss to American taxpayers. 

“With every fraud against the government, these criminals steal from the pockets of the American taxpayer. With every prosecution, we bring justice and return money to those same Americans,” said U.S. Attorney Jerome F. Gorgon Jr. 

“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.” 

“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder‑to‑shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.” 

“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.” 

“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.”

 

U.S. Attorney Gorgon Jr. announced that six defendants were included in the takedown involving approximately $8,200,000 in alleged losses.  The takedown included the following cases: 

United States v. Valente and United States v. Toma (26-cr-20534 and 26-cr-20385)

Peter Valente, and his then wife, Angela Toma, were indicted and charged with offenses involving a scheme to defraud the SBA. Using inactive companies to perpetrate the fraud, Valente and Toma successfully defrauded the SBA and other lenders of over $2,600,000. On June 30, 2026, Toma pleaded guilty Conspiracy to Commit Wire Fraud, and she is awaiting sentencing.  On August 19, 2026, Valente was indicted for Conspiracy to Commit Wire Fraud, multiple counts of Wire Fraud, Money Laundering Conspiracy, and Tampering with Documents and Proceedings.  Both Toma and Valente are facing up to 30 years’ imprisonment.

United States v. Patrick McNulty et al. (26-cr-20507)

Patrick McNulty and Joseph Gastorf were charged in an Information with Conspiracy to Commit Wire Fraud.  The object of the conspiracy was to cause the SBA and other third-party lenders to issue improper PPP loans and Economic Injury Disaster Loans (EIDLs) through false and fraudulent representations, then divert those proceeds for their own personal use.  The defendants are alleged to have submitted 36 fraudulent PPP and EIDL loan applications for several companies, obtaining a total of 18 fraudulent loans for 9 different companies.  The Information alleges over $2,700,000 in losses. 

United States v. Tauheed Wilder (25-cr-20779)

Wilder executed a scheme that caused the Michigan Unemployment Insurance Company  to issue unemployment insurance benefits based on false applications he filed or caused to be filed using the names and social security numbers of individuals without their consent or knowledge.  In the span of approximately six months during height of the pandemic, Wilder submitted approximately 150 fraudulent unemployment insurance claims using the stolen Personally Identifiable Information, many using the same fraudulent tax form. During the same period, Wilder obtained two fraudulent PPP loans from the SBA.  Wilder’s action resulted in a total loss of approximately $1,959,281. Following his guilty plea to Wire Fraud in April 2026, Wilder was sentenced on July 30, 2026, to 72 months’ in federal prison. He was also ordered to pay restitution as follows: $1,875,149.00 to the Michigan Unemployment Insurance Agency, and $84,132.00 to the U.S. Small Business Administration.

United States v. Karl Fultz (25-cr-20358)

In this case, defendant Karl Fultz made false misrepresentations to induce the SBA and lenders to issue an improper PPP loan in the amount of $866,688 for a business Fultz owned called Wheel Effects. In the application, Fultz made or caused to be made false and fraudulent claims that Wheel Effects had 41 employees and an average monthly payroll of nearly $350,000.  Both figures were inflated to fraudulently increase the loan amount that Wheel Effects was eligible to receive.  Fultz later used the ill-gotten gains for personal expenditures. On July 28, 2026, Fultz pleaded guilty to Conspiracy to Commit Wire Fraud and faces a statutory maximum penalty of up to 30 years’ imprisonment. 

These cases are being investigated by multiple agencies including Department of Labor Office of Inspector General, The Internal Revenue Service-Criminal Investigations, and the Department of Homeland Security Investigations.  The cases are being prosecuted by Assistant United States Attorneys Ryan Particka, Andrew Yahkind, and K. Craig Welkener. 

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.   
   
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law

DETROIT - Juan Romo-Padilla, 58, owner of La Posada – a Mexican restaurant, convenience store, and money remitter business located in Southwest, Detroit – was arrested on September 3, 2026, following a joint investigation by DEA-Detroit and IRS-CI, announced United States Attorney Jerome F. Gorgon Jr.  Romo-Padilla faces federal charges for conspiracy to launder monetary instruments, international money laundering, laundering of represented drug proceeds, and violations of the Bank Secrecy Act.  

Gorgon was joined in the announcement by Joseph O. Dixon, Special Agent in Charge, Drug Enforcement Administration, Detroit Field Division, and Todd Strom, Acting Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation.

According to the federal criminal complaint, agents from DEA and IRS-CI have been investigating Romo-Padilla since September 2024 for illegally sending structured cash transfers of drug proceeds to Mexico through La Posada. Between 2022 and 2026, Romo-Padilla conducted over 100,000 wire transfers totaling over $140 million to Mexico. Nearly all of the funds were sent to Mexican states associated with major drug cartels, including the Jalisco New Generation Cartel (CJNG), La Familia Michoacana, and the Sinaloa Cartel. 

“To fight the Mexican cartels, we have to stop the flow of drug money back to Mexico,” said Gorgon. 

“Money laundering is not a victimless crime, it is the financial engine that allows drug traffickers to turn illicit profits into the resources that fuel addiction, violence, and death in cities across America,” said Special Agent in Charge Dixon.  “We will follow the money, expose the networks behind these operations, and dismantle the financial infrastructure that allows them to thrive. We are moving with a renewed sense of urgency and will not stop until these criminal networks are destroyed.”

“The arrest of Juan Romo-Padilla for his role in transmitting funds from illegal drug transactions in and out of the United States is a victory for the American public and a defeat to drug traffickers everywhere. The special agents of IRS Criminal Investigation continue in their mission to disrupt the flow of ill-gotten gains that is the lifeblood for these criminals,” said Acting Special Agent in Charge Todd Strom, Detroit Field Office, IRS Criminal Investigation. “We will continue to be relentless in our mission to dismantle these drug trafficking organizations and bring the criminals who run them to justice.”

If convicted of these money laundering offenses, Romo-Padilla faces up to 20 years in prison on each count.

This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Detroit comprises agents and officers from numerous agencies with the prosecution being led by the United States Attorney’s Office for the Eastern District of Michigan. 

This case is being investigated by the DEA and IRS-Criminal Investigations with assistance from the Department of Homeland Security. The case is being prosecuted by Assistant United States Attorneys Caitlin Casey and Rajesh Prasad.

DETROIT – Timothy Higle, 34, of Clawson, Michigan and former substitute teacher, was sentenced this week to 40 years in federal prison after having pleaded guilty in April 2026 to charges that he sexually exploited minors and received child pornography, announced Jerome F. Gorgon, Jr., United States Attorney of the Eastern District of Michigan.  

Gorgon was joined in the announcement by Special Agent in Charge Jennifer Runyan, Federal Bureau of Investigation, Detroit Field Division.

According to court records, Higle solicited nude images and sexually explicit videos from over a dozen minors between ages 14 and 17 over Snapchat, targeting victims over the course of 12 years. Higle used money, drugs, alcohol, and extortion to get what he wanted from his victims. In exchange for producing the images and videos, Higle paid the minor victims using Cashapp and Venmo, and in some instances, he provided or offered marijuana and alcohol. As part of his tactics, Higle befriended his victims, knew their ages, and learned intimate details about their lives and family circumstances. For many, he became a trusted adult as he groomed them only to later exploit that knowledge and trust for his sexual gain. Higle inflicted countless mental and emotional harms on his victims without regard to their wellbeing.

Through grooming, Higle sexualized his young victims and commented on his preference for younger bodies over developed women. Higle directed his victims in graphic detail on what types of photos or videos he wanted to see such as specific poses and body parts. Higle also propositioned victims for sex, offering to pay victims as much as $500 to $1,000 for sex acts. When some victims attempted to cut contact or refused to send images, Higle threatened to post their photos online and he continued to harass them across other social media platforms. Law enforcement became aware of Higle’s conduct after one of the victims contacted the Michigan State Police in August 2024.

“This former teacher is a scheming pervert who hurt children for more than a decade. Now he has a 40-year sentence because law enforcement caught him,” said U.S. Attorney Gorgon.   

“This sentence makes one thing clear: those who choose to exploit children will face serious consequences,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “This defendant’s actions were a betrayal of public trust, and today’s outcome reflects our commitment to protecting vulnerable victims and holding offenders accountable. I commend the diligent investigative work of our FBI Oakland County Resident Agency, in partnership with the Michigan State Police, for bringing this predator to justice.”

This case was investigated by the Federal Bureau of Investigation and the Michigan State Police.  The case was prosecuted by Assistant U.S. Attorney Sean King of the Trafficking and Exploitation of Children Unit.

FLINT — Isiah L. Claiborne, 38, of Flint, was sentenced last week to 224 months in federal prison for possession with intent to distribute heroin, U.S. Attorney Jerome F. Gorgon Jr. announced. 

Gorgon was joined in the announcement by Joseph O. Dixon, Special Agent in Charge of the Drug Enforcement Administration’s Detroit Field Division. 

U.S. District Court Judge Shalina D. Kumar sentenced Claiborne following his guilty plea to possession with intent to distribute heroin. Judge Kumar ordered Claiborne’s sentences to be served concurrently to his state sentences for felon in possession of a firearm and felony firearm. Claiborne was convicted of those offenses following a trial in Genesee County Circuit Court involving the murder of Devaroe Davis. The jury was unable to reach a verdict on Claiborne’s murder-related charges, and those remain pending in state court. Judge Kumar ordered that Claiborne serve five years of supervised release following his term of imprisonment.

According to court documents, on October 1, 2021, law enforcement officers executed a search warrant at Claiborne’s residence.  During the execution of the search warrant, law enforcement officers seized over a kilogram of heroin, quantities of cocaine, methamphetamine, and marijuana, and two semi-automatic firearms. 

This investigation was conducted by special agents of the DEA’s Flint Resident Office in conjunction with agents from the FBI and ATF offices in Flint.

Today, the Department of Justice is monitoring polling sites in four Michigan cities for the state’s primary election to ensure transparency, ballot security, and compliance with federal law.

The Department, through the Civil Rights Division, enforces federal voting rights laws that protect the rights of all eligible citizens to access the ballot. The Department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities across the country.

“Our primary monitoring efforts continue today as we seek to ensure free and fair elections nationwide,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Department of Justice is devoting extensive resources to ensure uniform and nondiscriminatory monitoring. We appreciate the cooperation of these jurisdictions in promoting trust and transparency.”

“Transparency promotes both trust and better behavior in election administration,” said U.S. Attorney Timothy VerHey for the Western District of Michigan. “Our office is always going to be ready to lead in promoting free and fair elections.”

The Department is currently monitoring polls in Detroit, Hamtramck, Lansing, and East Lansing with DOJ staff from the Civil Rights Division’s Voting Section and Michigan’s U.S. Attorney’s Offices for both the Western and Eastern districts.

This initiative is aimed at promoting transparency and an open flow of communication between poll observers and election monitors. The Civil Rights Division’s Voting Section enforces various federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Uniformed and Overseas Citizens Absentee Voting Act, the Americans with Disabilities Act, and the Civil Rights Acts.

From now and up to Election Day on Nov. 3, 2026, Civil Rights Division personnel will be available to receive questions and complaints from the public related to possible violations of federal voting rights laws. If you would like to request election monitoring in a particular jurisdiction, please contact the Voting Section at VEM@usdoj.gov, and the Civil Rights Division will determine whether monitoring is warranted.

DETROIT – A native and citizen of Honduras has been charged for illegally re-entering the United States after having been previously removed, announced United States Attorney Jerome F. Gorgon, Jr. 

Gorgon was joined in the announcement by Acting Chief Patrol Agent Javier Geronimo, Jr., U.S. Border Patrol, Detroit Sector. 

The government charged Michael Jamblyck Costly Bennett, 30. Bennett appeared in federal court in Detroit yesterday and was detained pending further proceedings. 

According to the criminal complaint, agents arrested Bennett during a traffic stop in Taylor, Michigan. During processing, a records check revealed that Bennett was in the United States illegally and wanted abroad for murder. Agents also discovered fraudulent documents in his possession, including counterfeit Social Security and permanent resident cards. Bennett had been removed from the United States twice before.

“This apprehension underscores the critical nature of our mission. We will enforce our immigration law at and beyond our borders to remove dangerous foreign nationals who attempt to hide within our communities,” said Acting Chief Patrol Agent Javier Geronimo, Jr. “Our agents build strong law enforcement partnerships and exercise the utmost of vigilance on duty while utilizing every tool at our disposal to ensure that violent criminals—regardless of where they originate—are held accountable and prevented from threatening the safety of the American public.”

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. 

A complaint is only a charge and not evidence of guilt. A defendant is presumed innocent. It is the government’s burden to prove guilt beyond a reasonable doubt.

DETROIT – The Justice Department’s National Fraud Enforcement Division continues to advance its mission to fight fraud and protect taxpayers. Today, United States Attorney Jerome F. Gorgon Jr. announced that Condat Corporation, a Michigan company that produces a range of industrial lubricants, has agreed to pay $1,811,034.24 to settle allegations that it violated the False Claims Act by making false statements to the U.S. Small Business Administration (SBA) to obtain a Paycheck Protection Program (PPP) loan for which Condat was ineligible.

Congress created the PPP in March 2020 to provide emergency financial assistance to American businesses suffering from the economic effects of the COVID-19 pandemic. Under the PPP, eligible small businesses could receive forgivable loans guaranteed by the SBA. Regulations provided various eligibility requirements for the PPP, including limitations on the number of employees and restrictions for foreign-owned companies. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications.

In January 2021, Condat obtained a second draw PPP loan for $1,000,000. At the time of its loan application, Condat was a subsidiary of Condat SA, a privately held, family-owned French Company, and a member of Condat Groupe, comprised of at least 15 associated business entities worldwide. The United States alleged that Condat falsely certified that it was eligible for the second draw loan and loan forgiveness, even though, together with its affiliates, it had more than 300 employees, in violation of the PPP rules in effect at the time Condat obtained the funds.

“The Paycheck Protection Program supports American small businesses, not international conglomerates,” said U.S. Attorney Jerome F. Gorgon, Jr. “We are coming for companies that lied to get COVID-19 relief loans.”

This civil settlement resolved a sealed lawsuit originally filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit has been unsealed and is captioned U.S. ex rel. GNGH2, Inc. v. Condat Corporation, Case No. 2:24-cv-12269. The whistleblower will receive 10% of the settlement amount.

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

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

Individuals with information about allegations of fraud involving COVID-19 are encouraged to 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; there has been no determination of liability.

DETROIT - United States Attorney Jerome F. Gorgon Jr. announced today that Orchard Laboratories Corporation (Orchard) agreed to a settlement of $6,494,290.00 to resolve allegations that it violated the False Claims Act. 

Gorgon was joined in the announcement by Jennifer Runyan, Special Agent in Charge, Federal Bureau of Investigation, Detroit Division and Thomas Ethridge, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).

From April 4, 2022 – May 11, 2023, Medicare paid for up to eight over-the-counter (OTC) COVID tests per month for eligible beneficiaries.  Individuals did not need a prescription to be eligible for the free tests, but they did need to affirmatively request the tests from an eligible provider.  Eligible providers included physicians, pharmacies, and laboratories.  Orchard was a clinical reference laboratory that participated in the OTC COVID-19 test program.  The United States began investigating Orchard after it received complaints alleging that Orchard had improperly billed for OTC COVID tests that were never requested or received by the beneficiary.  This settlement resolves allegations that Orchard billed Medicare for OTC COVID tests that were never delivered during the period from March 1, 2023, through May 11, 2023. 

“The False Claims Act is an important tool to combat fraudulent medical billing,” said U.S. Attorney Jerome F. Gorgon Jr. for the Eastern District of Michigan. “Our office is coming for healthcare providers who cheat the government.”

“Today’s settlement reinforces our steadfast commitment to protecting the integrity of federal health care programs and ensuring accountability when violations occur,” said Special Agent in Charge Thomas Ethridge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).  “We remain dedicated to safeguarding taxpayer dollars, and we will continue to work with our law enforcement partners to uphold the trust placed in us by the public.”

“Protecting taxpayer-funded healthcare programs is essential to preserving public trust and ensuring federal healthcare dollars are used as intended,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office.  “Healthcare providers entrusted with federal healthcare dollars have a responsibility to bill honestly and accurately.  I commend the outstanding work of the members from FBI Detroit and HHS-OIG resolving this matter."

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 Federal Bureau of Investigation, and the U.S. Department of Health and Human Services - Office of the Inspector General.  The matter was handled by Assistant United States Attorneys John Postulka and Gregory Dickinson from the U.S. Attorney’s Office for the Eastern District of Michigan.   

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division).  The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people.  The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

The investigation and resolution of this matter illustrate 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.

DETROIT – Michael Wendt, 38, of Grosse Ile, Michigan was arrested on July 21, 2026, and charged with child pornography offenses, announced Jerome F. Gorgon, Jr., United States Attorney for the Eastern District of Michigan. Wendt was detained after a detention hearing, July 24, 2026, in federal court in Detroit.

Gorgon was joined in the announcement by Jennifer Runyan, Special Agent in Charge, Federal Bureau of Investigation, Detroit Division.

According to the criminal complaint, it is alleged that in June 2026, Wendt uploaded child sexually abusive material (CSAM) to his Google Drive account. Following the execution of a search warrant, agents seized Wendt’s cell phone and during a manual review found several hundred images of CSAM, including images that depicted sexual assaults of young children, infants, and toddlers. Agents also found open websites on the phone depicting CSAM. 

The FBI is aware that Wendt worked as a physician’s assistant at urgent care offices in the Detroit area. Currently, the FBI has no information suggesting that any patients were victimized. In response to numerous public inquiries, the FBI has established a website seeking relevant information from the public for the ongoing criminal investigation.

If you and/or your minor dependent(s) have information relevant to this investigation, please fill out this short form. If you or your minor dependent is identified as a victim in this case, all identities of victims will be kept confidential.

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

This case is being investigated by agents of the FBI with the assistance of the Grosse Ile Police Department. The case is being prosecuted by Assistant U.S. Attorneys Sean King and Tara Hindelang.

DETROIT – Michael Gary Petersen, 41, of Melvindale, Michigan, was arrested on July 16, 2026, and charged with making threats to kill ICE agents and other law enforcement officers, United States Attorney Jerome F. Gorgon, Jr. announced. 

Gorgon was joined in the announcement by Jared Murphey, acting Special Agent in Charge of Homeland Security Investigations in Detroit and acting Field Office Director Matthew Putra, Immigration and Customs Enforcement – Enforcement and Removal Operations Detroit. 

The criminal complaint charges Petersen with threatening to assault or murder a law enforcement officer, and interstate communications involving threats. Between January and July of 2026, Petersen posted a series of messages to his social media accounts in which he threatened law enforcement officers, as well as social media users, who opposed Petersen’s views. He repeatedly encouraged his social media followers to shoot law enforcement officers in the face, admonishing others to “[n]ever trust officers. Death to them all.” Petersen warned his readers, “Wait till we start throwing grenades and start shooting armor piercing rounds at these agents.” On June 7, 2026, Petersen declared that the ICE Agent involved in the shooting of Renee Good “…can’t escape a bullet. It’s coming soon. Just wait. ;).”  In response to a user who disagreed with Petersen, he replied, “I have a bullet with your name on it.”

“Threats against law enforcement are an attack on the rule of law. These brave Americans protect us. And we will do our part to protect them,” said Gorgon. 

“Disagreement with laws is one thing but the allegations here involve threatening to shoot officers in the face and throw explosive devices,” said HSI Detroit acting Special Agent in Charge Jared Murphey. “We take these types of threats extremely seriously and HSI special agents will vigorously investigate these cases and bring them to justice.” 

“The men and women of ICE are enforcing the immigration laws of the land as passed by Congress,” said ICE ERO Detroit acting Field Office Director Matthew Putra. “For them to be allegedly targeted for simply doing their duty according to federal law is unconscionable.”

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

This case is being investigated by Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Eaton Brown.

DETROIT -  Janero Van DeMario Garrett, 49, a United States citizen and multi-convicted felon, was apprehended in Mazatlán, Sinaloa, Mexico on July 17, after a joint operation conducted by DEA-Detroit, DEA-Mexico, US Marshals Mexico Foreign Field Office and US Marshals Detroit Office, FBI-Detroit, and Mexican authorities, announced United States Attorney Jerome F. Gorgon, Jr. Garrett faces federal narcotics trafficking charges in the Eastern District of Michigan and state firearms charges in Wayne County, Michigan. 

Gorgon was joined in the announcement by Joseph O. Dixon, special agent in charge, Drug Enforcement Administration, Detroit Field Division.

According to the federal criminal complaint, on October 31, 2024, Garrett ignored Detroit police officers’ attempts to stop his vehicle and fled at a high rate of speed. Garrett later fled on foot, carrying a roller bag containing 10 kilograms of cocaine. Investigators found the cocaine in a trash can along Garrett’s flight path. On the same day, investigators found 3 kilograms of cocaine and $606,913 of suspected drug proceeds at his residence. 

                              Portion of bulk case seized

                      Kilograms of cocaine located inside roller bag

“The Homeland Security Task Force (HSTF) works with our foreign partners to keep Americans safe by prosecuting drug dealers who harm our people. Hiding in another country will not save you. No defendant is beyond our reach,” said Gorgon. 

“This individual was wanted on federal drug trafficking charges, and today’s arrest demonstrates that no one can evade justice indefinitely.  Drug trafficking fuels violence, addiction, and instability in our communities, and the DEA will remain committed to working with our law enforcement partners around the globe to identify, locate, and apprehend those who engage in these criminal activities, and they will be held accountable in the U.S. justice system,” said Special Agent in Charge Joseph O. Dixon.

If convicted of the narcotics offenses, Garrett faces at least 10 years in prison.

This prosecution is part of the HSTF initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Detroit comprises agents and officers from numerous agencies with the prosecution being led by the United States Attorney’s Office for the Eastern District of Michigan. 

This case is being investigated by the DEA. The case is being prosecuted by Assistant United States Attorney Paul Kuebler.

A complaint is only a charge and not evidence of guilt. A defendant is presumed innocent. It is the government’s burden to prove guilt beyond a reasonable doubt.

DETROIT – James Andrew Tallon, 42, of Ypsilanti, Michigan, was sentenced to 10 years in federal prison for receiving and distributing child pornography. 

U.S. Attorney Jerome F. Gorgon Jr. was joined in the announcement by Jennifer Runyan, Special Agent in Charge of the Federal Bureau of Investigation. 

From at least September 2023, until his arrest in February 2025, Tallon distributed thousands of images and videos containing child sexually abusive material to other subjects, including material that depicted infants and toddlers. The FBI’s investigation eventually showed that Tallon distributed child pornography to other subjects on every continent except for Antarctica.

Receipt and distribution of child pornography each carry a mandatory minimum sentence of five years for first time offenders. 

“If you sexually exploit children, expect to lose your freedom. This predator will spend the next 10 years in federal prison paying the price for his horrific crimes,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “This defendant distributed thousands of horrific images and videos depicting the abuse of infants and toddlers, perpetuating unimaginable harm to innocent children around the world. I am grateful for the relentless work of our Southeast Michigan Trafficking and Exploitation Crimes Task Force, whose dedication stopped this offender and protected children from further victimization. The FBI will continue using every available resource to identify, investigate, and bring to justice anyone who exploits our children.”

This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorneys Zachary Zurek and Sean King

DETROIT – A West Bloomfield resident was charged in a criminal complaint for his alleged role in a scheme to obtain millions of dollars in investment funds based on false pretenses, announced United States Attorney Jerome F. Gorgon Jr. 

U.S. Attorney Jerome F. Gorgon Jr. was joined in the announcement by Jennifer Runyan, Special Agent in Charge of the Federal Bureau of Investigation. 

The complaint charges Kenneth Bardwell, 66, of West Bloomfield with one count of wire fraud. According to the complaint, Bardwell is the operator of a company called “Motown Sports Group Holdings, Inc.” and several related business entities. Through these entities, Bardwell has solicited and obtained millions of dollars from investors for a project involving the purported development of a multi-billion dollar sports and entertainment complex in Romulus, Michigan. Bardwell represented to investors that their money would be used to purchase land and develop the project, but if the land could not be purchased, the money would be returned to investors from an escrow account. According to the complaint, Bardwell has made almost no effort towards the purchase of the land to develop the project. He instead spent most of the investor funds on gentlemen’s clubs, luxury retail goods, rental cars, and lifestyle expenses for himself and his associates. 

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

The case is being prosecuted by Assistant United States Attorney Robert Moran. The investigation 

is being conducted by the FBI Detroit Fraud and Financial Crimes Task Force, Birmingham Police Department and Bloomfield Township Police Department, with assistance from West Bloomfield Police Department.

The FBI is seeking information from any individuals who may have invested money with Motown Sports Group Holdings, Inc. or Kenneth Bardwell, or who may otherwise have information pertinent to this investigation. Please visit https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/seeking-victim-information-in-motown-sports-group-holdings-inc-investigation for further information.

FLINT —Omar R. Pouncy, 39, of Flint, was sentenced on July 14, 2026, to five years in federal prison for suborning perjury, U.S. Attorney Jerome F. Gorgon Jr. announced. 

Gorgon was joined in the announcement by Jennifer Runyan, Special Agent in Charge of Federal Bureau of Investigation’s Detroit Field Office. 

U.S. District Court Judge F. Kay Behm imposed sentence on Pouncy following his guilty plea to suborning perjury. Pouncy pleaded guilty after a trial and while the jury was deliberating. Judge Behm ordered Pouncy’s sentence to be served consecutively to his state sentences for armed robbery and carjacking. Pouncy’s earliest release date for his state sentences is February 2055, and Pouncy’s state sentences could run until December 2074. Pouncy will serve his federal sentence after his state sentences. Judge Behm also ordered Pouncy to pay a $50,000 fine. 

According to court documents and the testimony and evidence elicited at trial, Pouncy was convicted of committing multiple carjackings and armed robberies in Genesee County in 2005. The trial court sentenced Pouncy to a lengthy term of incarceration.  After exhausting all of his appeals in state court, Pouncy filed a federal habeas corpus petition in the United States District Court for the Eastern District of Michigan in 2013. During the federal habeas proceedings, Pouncy alleged, among other things, that he was innocent of the carjackings for which he had been convicted, and that another man, Jaakawa McGruder, had committed the carjackings instead of Pouncy.

On May 22, 2018, the U.S. District Court conducted an evidentiary hearing on Pouncy’s actual innocence claims.  During the hearing, Jaakawa McGruder testified falsely that he, not Pouncy, committed the carjackings.  During the hearing, McGruder also testified falsely that he had not been offered and was not receiving any money for his testimony or his presence at the hearing, when in fact, Pouncy paid McGruder $10,000 to testify.  Pouncy’s scheme was uncovered when employees of the Michigan Department of Corrections found, and later searched, two cell phones that Pouncy was using from inside prison.  Text messages on the phones revealed that Pouncy coached McGruder on how to testify, providing him with details of the carjackings and robberies that only the perpetrator would know.  The text messages also revealed Pouncy’s directives to others to ensure payment to McGruder in order to secure his testimony in the habeas proceeding. 

McGruder and another person who assisted Pouncy in his scheme were previously convicted for their roles. 

“Trying to buy your freedom with lies and fabricated testimony is a foolish attempt to pervert the integrity of our justice system. These deceptive efforts nearly put a violent offender back on our streets, and this sentence ensures he will face the consequences,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “I am grateful for the exceptional work of our FBI Flint Resident Agency and the critical partnership of the Michigan Attorney General’s Office and Michigan Department of Corrections in helping expose this conspiracy. I also want to thank the U.S. Attorney’s Office for the Eastern District of Michigan for its work in prosecuting this case and recognize the Genesee County Sheriff’s Office for their assistance throughout the trial. Let this sentence serve as a warning to those who attempt to undermine our justice system: the FBI and our partners will pursue the truth, protect the integrity of our courts, and hold you accountable.”

This investigation was conducted by special agents of the FBI’s Flint Resident Agency.

DETROIT – A native and citizen of Mexico has been charged for illegally re-entering the United States after having been previously removed, announced United States Attorney Jerome F. Gorgon, Jr. Gorgon was joined in the announcement by Acting Chief Patrol Agent Javier Geronimo, Jr., U.S. Border Patrol, Detroit Sector. 

“Illegal aliens continue to break American laws and threaten American lives. The only sure way to prevent these crimes is to keep them out of our country,” said U.S. Attorney Gorgon. 

"This case underscores the critical importance of our mission to secure the border and protect our communities," said Acting Chief Patrol Agent Javier Geronimo, Jr., U.S. Border Patrol, Detroit Sector. "The illegal re-entry of this alien, Jose Manuel Cazarez-Pulido, not only violated our laws but also led to a tragic incident where two individuals were critically injured. We are committed to working closely with our law enforcement partners, like the Waterford Police Department and the U.S. Attorney's Office, to ensure that those who illegally re-enter the United States and endanger our citizens are held accountable. This effort is a direct reflection of our dedication to Operation Take Back America, as we strive to repel illegal immigration and safeguard our communities from criminal activity."

The government charged Jose Manuel Cazarez-Pulido, 33. Cazarez-Pulido appeared in federal court in Detroit yesterday where he was temporarily detained pending a detention hearing.

According to court records, on or about July 1, 2026, Cazarez-Pulido was arrested by Border Patrol Agents near Waterford, Michigan, after a call for assistance from Waterford Police Department to help identifying a subject in their custody. 

According to police reports, Cazarez-Pulido ran a red light smashing into a motorcycle carrying a female, age 71 and a male, age 64. Cazarez-Pulido was the sole driver of the Chrysler Town and Country van that struck the motorcycle at the intersection of N. Hospital Road and Pontiac Lake Road in Waterford. The two victims were critically injured. Following the accident, Waterford Police searched Cazarez-Pulido’s vehicle and found an open Budweiser beer bottle on the passenger floorboard. According to the officers on the scene, Cazarez-Pulido did not appear intoxicated. Cazarez-Pulido was issued a citation for Open Alcohol in a Motor Vehicle, Leaving the Scene of a Personal Injury Accident and Disobey Red Traffic Signal.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. 

A complaint is only a charge and not evidence of guilt. A defendant is presumed innocent. It is the government’s burden to prove guilt beyond a reasonable doubt.

DETROIT – A small business’s former financial controller, who engaged in a pattern of embezzling funds from his employer, pleaded guilty yesterday, announced United States Attorney Jerome F. Gorgon, Jr.

Gorgon was joined in the announcement by Jennifer Runyan, Special Agent in Charge of Federal Bureau of Investigation and Robert Kuszynski, Acting Special Agent in Charge of the Internal Revenue Service-Criminal Investigations. 

Jacob Wise, age 29, from Riverview, Michigan, pleaded guilty to one count of wire fraud for orchestrating a scheme that caused over $1.1 million in losses to the business where he worked. He also pleaded guilty to one count of laundering the proceeds of his crimes. 

At the hearing, Wise admitted to devising and executing a scheme to order and to divert the company’s funds to bank accounts he controlled. The accounts appeared to be legitimate vendors for the company. In reality, Wise himself controlled the accounts and used the diverted funds to make purchases, including a Ford F-150 pickup truck, which agents seized as part of the investigation.

Sentencing before United States District Judge Judith Levy will be set after a presentence report is prepared. Wise faces a possible maximum sentence of 20 years’ imprisonment, a fine of not more than $250,000, and up to three years of supervised release following any term of imprisonment. 

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations. The case is being prosecuted by Assistant United States Attorneys Kelly Fasbinder and Philip A. Ross

DETROIT –Two individuals who conspired to steal dozens of properties from Detroiters facing potential tax foreclosure have been sentenced today, United States Attorney Jerome F. Gorgon, Jr. announced.

Zina Thomas, 62, of Detroit, received 90 months in federal prison following a conviction for federal program bribery.  Jontae Jackson, 45, of Southfield received 66 months in federal prison for convictions for conspiracy to commit bribery and aggravated identity theft. Both were sentenced by United States District Judge Robert J. White.

Gorgon was joined in the announcement by Special Agent in Charge Jennifer Runyan, Federal Bureau of Investigation, Detroit field office.

According to the court records, Thomas, formerly employed as the Director of Homeownership Programs for a local non-profit, conspired with and paid bribes to Jackson, formerly employed as a taxpayer assistant with the Wayne Counter Treasurer’s Office, in order to steal approximately 100 properties across Wayne County, predominately located in the City of Detroit.  The total estimated value of the properties involved was approximately $6.4M. 

The scheme involved Thomas identifying properties facing potential tax foreclosure and then diverting those properties into her control through fraudulent quitclaim deeds.  Multiple fraudulent deeds were involved, frequently transferring the target properties from the victim-owners to non-existent “interim owners” in the first instance.  Thomas, who was also a real estate agent, then sold many of the properties to third parties.  In order to conceal the scheme and free up the properties for sale, Thomas bribed Jackson to upload false documentation—including fake driver’s licenses, utility bills, and Principal Residence Exemption forms—into Wayne County’s Property Tax Administration system, which Jackson then used to halt the pending foreclosures.  This process prevented dozens of properties from being auctioned off, depriving Wayne County of an estimated $1.5M in tax revenue.   

This case was investigated by the Federal Bureau of Investigation. Significant investigative assistance was provided by the Wayne County Register of Deeds’ Mortgage & Deed Fraud Unit.  The case is being prosecuted by Assistant United States Attorney Ryan A. Particka.  

DETROIT – Today, United States Attorney Jerome F. Gorgon, Jr. announced criminal charges and civil resolutions in connection with six cases involving alleged schemes to defraud health care programs, including Medicare and Medicaid. The charges were filed in federal court and are part of the Department of Justice’s 2026 National Health Care Fraud Enforcement Action. The criminal charges stem from the fraudulent billing of Medicare and Medicaid. The civil cases resolve alleged violations of the False Claims Act by several health care providers. 

The charges announced today by United States Attorney Jerome F. Gorgon, Jr., are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Today’s Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.   

Today’s coordinated enforcement action involves a whole-of-government approach, including: 

•           Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.

•           48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.

•           Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.

•           928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.

“These schemes represent a direct attack on the integrity of federally funded health care programs. Fraudulent billing, false claims, and the failure to return federal funds are unacceptable and a blatant abuse of programs meant to support the American public,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “We will continue to hold accountable anyone who seeks to exploit Medicare, Medicaid, or any other taxpayer supported system."

“Safeguarding the integrity of federal health care programs is central to our mission, and the results of this year’s National Health Care Fraud Takedown reflect the strength of our collective commitment. The cases announced today demonstrate not only the scale, but the seriousness of the misconduct uncovered, ranging from patient harming schemes to multibillion dollar fraud operations,” said Department of Health and Human Services Inspector General T. March Bell. “HHS-OIG will continue to pursue those who engage in such conduct and hold them accountable. I am grateful for the tireless work of our special agents and for the partnership we share with our federal, state, and local law enforcement colleagues as we work together to protect patients and preserve public funds.”

The following individuals were charged in the Eastern District of Michigan: 

Hasan “Lucas” Seyhun, 45, of Miami, Florida, was charged by indictment with conspiracy to commit healthcare fraud and conspiracy to launder monetary instruments in connection with an alleged $566 million billing fraud related to Fast Lab Technologies. As alleged in the First Superseding Indictment, Seyhun, as Fast Lab’s Chief Operating Officer, conspired with its CEO (previously charged defendant Cemhan “Jimmy” Biricik) and Medical Director (previously charged defendant Dr. Martin Perlin) to submit health insurance claims for laboratory testing services related to Covid-19 tests that were either not rendered at all or not provided as represented. The First Superseding Indictment also charges Seyhun and Biricik with an additional conspiracy, to both conceal and subsequently launder the proceeds of the health care fraud scheme. The First Superseding Indictment includes significant forfeiture allegations, with specific allegations of property subject to forfeiture that include: a personal aircraft, six high-end vehicles, numerous bank accounts, miscellaneous jewelry and designer handbags, and a residence in Boca Raton, Florida. The case is being prosecuted by Assistant United States Attorneys Regina R. McCullough and Ryan A. Particka of the U.S. Attorney’s Office for the Eastern District of Michigan. 

Emad Hamdan, 55, of Dearborn Heights, Michigan, and Raeyfah Baiz, 41, of Canton, Michigan were charged by way of an information with conspiracy to commit health care fraud for a pharmacy shortage scheme that caused at least $1.9 million in loss to Medicare, Medicaid, and Blue Cross Blue Shield of Michigan. Rabih Hamdan, owner of Medex Pharmacy (Medex), created a scheme to submit false and fraudulent claims for prescriptions that were not medically necessary or not actually dispensed. In many instances, his pharmacy lacked the inventory to dispense these drugs but billed the health care insurers as though they were dispensed. As alleged in the charging documents, Emad Hamdan was one of the supervisors at Medex. He directed Baiz and others to submit false and fraudulent claims to Medicare, Medicaid, and Blue Cross Blue Shield on behalf of Medex. As alleged in the charging documents, Raeyfah Baiz was the pharmacist-in-charge, who maintained a national provider identifier for the purposes of submitting claims to Medicare, Medicare drug plan sponsors, Medicaid, Medicaid health plans, and BlueCross BlueShield. Baiz partnered with Rabih Hamdan and Emad Hamdan to submit false and fraudulent claims to Medicare, Medicaid, and Blue Cross Blue Shield on behalf of Medex. The case is being prosecuted by Assistant United States Attorney Jason Dorval Norwood of the U.S. Attorney’s Office for the Eastern District of Michigan. 

Christopher Dzialo, 35, of Reno, Nevada (previously of Grosse Pointe Farms, Michigan) was charged by Indictment with mail fraud and healthcare fraud in connection with a scheme to submit false pharmacy and medical insurance claims for high-reimbursement drugs that were never prescribed and services that were never rendered. As alleged in the indictment, between June 2023 and July 2025, Dzialo submitted at least eight fraudulent Direct Member Reimbursements (DMR) to his own insurance provider, seeking repayment for alleged out of pocket expenses. These claims either were for prescriptions he never obtained or medical procedures he never received, with an alleged value of $158,514.39. The case is being prosecuted by Assistant United States Attorneys Ryan A. Particka and Aleksandrs K. Bomis of the U.S. Attorney’s Office for the Eastern District of Michigan.

Reno Dandy, a/k/a/ “RJ”, 28, of Eastpointe, Michigan; and Francina Kirk, a/k/a/ “Keisha”, 45, of Pontiac, Michigan were charged in a superseding indictment with conspiracy to possess with intent to distribute and to distribute controlled substances in connection with their roles in an unlawful scheme to distribute Schedule II and V controlled substances Oxycodone, Oxycodone-Acetaminophen (Percocet), Hydrocodone-Acetaminophen (Norco), Oxymorphone, and Promethazine with Codeine. As alleged in the indictment, medical clinics were organized and purported to operate at different locations in Southeast Michigan, including Grace Medical Clinic, PLLC (Grace). Grace was operated by Dandy and Kirk, and Dr. Chinoy was a prescriber at Grace. Dandy, Kirk, and other co-conspirators coordinated opioid controlled substance prescribing to Grace “patients” by, among other things, receiving “patient” information, loading “patient” information into Grace’s electronic prescribing platform, collecting payments from “patients” or patient recruiters/marketers, and sending electronic and other payments to Dr. Chinoy. From in or around November 2023 to on or about March 5, 2024, Dr. Chinoy electronically issued opioid controlled substance prescriptions to Grace “patients” without seeing, examining, or communicating with the “patients,” and instead Dr. Chinoy did so as directed by and based on patient information provided by Dandy, Kirk, and co-conspirators. During the conspiracy more than 400,000 dosage units of Schedule II and Schedule V controlled substances were unlawfully prescribed, which carried an estimated wholesale street value of more than $7 million. The case is being prosecuted by Assistant United States Attorneys Sarah Youngblood and Regina R. McCullough of the U.S. Attorney’s Office for the Eastern District of Michigan. The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit, a Department of Justice initiative to combat the opioid epidemic. 

The civil matters included in the Takedown included settlements with the following entities and individuals: 

McLaren Health Care Corporation and related entities (McLaren) of Michigan, agreed to pay a total of $1.9 million to resolve a qui tam False Claims Act lawsuit. The settlement resolves allegations that McLaren failed to timely repay overpayments from federally funded healthcare programs during the period from January 1, 2016, through June 18, 2021. The matter was handled by Assistant United States Attorney John Postulka of the U.S. Attorney’s Office for the Eastern District of Michigan.   

Jason Herzog, the former CEO of Avertest, LLC, d/b/a Averhealth, a nationwide drug testing company located in Glen Allen, Virginia, reached a civil settlement to pay $150,000 to resolve allegations that in his capacity as CEO of Averhealth, he violated the False Claims Act when he knowingly submitted, or caused the submission of, false claims for payment on behalf of Averhealth to the Michigan Department of Health and Human Services, and knowingly made false statements material to those claims, concerning improper positive oral fluid drug test results. The case was settled by Assistant U.S. Attorney Anthony Gentner of the U.S. Attorney’s Office for the Eastern District of Michigan.

The cases are being prosecuted by the Health Care Fraud Section’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the District of Arizona, Central District of California, Eastern District of California, Northern District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Idaho, Northern District of Illinois, District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Western District of Michigan, Southern District of Mississippi, District of Montana, District of Nevada, District of New Hampshire, District of New Jersey, District of Nex Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Western District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Southern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Western District of Pennsylvania, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, Eastern District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices in Alaska, Arizona, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Inidiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia, Washington, and Wisconsin.

Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.

The Eastern District of Michigan, in particular, worked with the Department’s Health Care Fraud Unit of the Fraud Division and the following law enforcement agencies to investigate and prosecute the cases filed during the Takedown: the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and the FBI.

An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

DETROIT – Michael David Bulanda, 37, of New Boston, Michigan, pleaded guilty yesterday to one count of attempted coercion and enticement of a minor. Sentencing is scheduled for September 22, 2026. Bulanda faces a mandatory minimum sentence of 10 years, and a possible sentence of life imprisonment. 

U.S. Attorney Jerome F. Gorgon, Jr., was joined in the announcement by Special Agent in Charge Jennifer Runyan, Federal Bureau of Investigation, Detroit field office.

In December 2025, the FBI Philadelphia office arrested a man for the production of child pornography. The FBI found a chat where Bulanda sent a nude image of MV-1 to that man asking him to blackmail MV-1 to obtain “more nudes.” Bulanda provided the man with personal information about MV-1 to facilitate the blackmail, including information about MV-1’s siblings and friends. The man and Bulanda discussed posting the minor’s picture on a public forum to make her “feel fear,” as a tactic that has worked in the past to break “many stubborn” girls. 

“This pervert tried to blackmail a child by making her ‘feel fear’ so that he could abuse her even more. Now, he will feel justice,” U.S. Attorney Gorgon said.

“Using fear, manipulation, and blackmail to exploit a child is among the most reprehensible crimes we investigate. This guilty plea ensures this predator will be held accountable,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “I am especially grateful for the outstanding work of our Southeast Michigan Trafficking and Exploitation Crimes task force (SEMTEC), whose dedication was instrumental in securing this guilty plea, in addition to the support provided by the FBI Philadelphia Field Office during this investigation.”

This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Zachary Zurek

DETROIT – Brian Mitchell pleaded guilty on Friday afternoon to defrauding investors in a multi-million-dollar commodities trading scheme, United States Attorney Jerome F. Gorgon, Jr. announced.

Gorgon was joined in the announcement by Special Agent in Charge Jennifer Runyan, Federal Bureau of Investigation, Detroit field office.

Mitchell, 43, of Ann Arbor, pleaded guilty to wire fraud and admitted that he defrauded multiple third-party investors, causing a loss of over $2.7 million.

In entering his plea, Mitchell acknowledged that he caused false representations to be made regarding the security, profitability, and use of investor funds. Mitchell used various entities to solicit investor money, including “Young Pros Investment Group” (“YPIG”) and “My Nest Egg.” As part of his scheme, Mitchell made—and caused—repeated misrepresentations that investor principal was protected against loss and was “guaranteed.” Mitchell also made, and caused, misrepresentations that set earnings would occur and that investor funds would be available for return at certain points. After suffering significant trading losses, Mitchell lied to investors about why their investment principal was no longer guaranteed, as he had previously claimed. Mitchell falsely told investors that the Commodity Futures Trading Commission (“CFTC”) had seized assets that he described as “back-up money.” 

While executing his fraud scheme, Mitchell entered into a settlement with the CFTC relating to earlier violations of the Commodity Exchange Act that occurred between January 2018 and January 2019. Under that settlement, Mitchell was barred for three years from engaging in commodity futures trading activity and from soliciting, receiving, and accepting funds for such activity. Despite that ban, Mitchell continued to solicit, accept, and trade third-party investment funds in commodity futures and failed to disclose his trading bar to investors.

Mitchell admitted that his conduct violated his prior settlement agreement with the CFTC and the regulatory requirements of the Commodity Exchange Act.

As part of his plea agreement, Mitchell has agreed to pay restitution of $2.7 million to his victims. 

Potential victims are encouraged to contact the Federal Bureau of Investigation at: https://forms.fbi.gov/victims/YPIG-MyNestEggVictims 

Sentencing is set for October 7, 2026, at 2:00 pm before United States District Judge Laurie J. Michelson. Mitchell faces up to 20 years’ imprisonment. 

“The FBI refuses to let scammers get away with perpetually stealing from and betraying hardworking Americans. This scheme caused significant financial harm to investors who placed their trust in the defendant, and today’s guilty plea is another reminder that those who commit these crimes will be held accountable," said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. "I am grateful for the exceptional work of our FBI Ann Arbor Resident Agency, whose meticulous investigative efforts were critical to bringing financial justice to the victims of his crimes.”

The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Andrew J. Yahkind

DETROIT – Jerome F. Gorgon, Jr., U.S. Attorney for the Eastern District of Michigan, joins the Department of Justice and the Elder Fraud Coordinating Council, along with other government agencies and organizations across the country in recognizing World Elder Abuse Awareness Day (WEAAD).  WEAAD provides an opportunity for all of us to promote dialogue and action on the issue of elder abuse, neglect, and exploitation. This year’s Elder Justice Coordinating Council’s campaign, entitled Never EVER, helps to raise awareness about how to recognize and avoid imposter scams.

Imposters are scammers who pretend to be someone they’re not — including government agencies and well-known businesses — to trick you into giving them money, access to your financial accounts, or your personal information. They make up complicated stories about so-called emergencies, so you’ll panic and act quickly before you have time to think about what to do or talk to someone you trust. 

One common scam starts with an unexpected call from someone who says they’re from a well-known business, saying there’s suspicious activity on your account.  To “help” you, they transfer you to someone who says they’re from the government. This so-called helper, who claims to be from the FBI, the FTC, or some other law enforcement agency, urges you to move your money to “protect it” — maybe by transferring it to an account they give you, depositing it in a “government account” or crypto ATM for “safekeeping,” or getting cash or gold and giving it to a courier. But it’s all a lie. No one from the government will ever ask you to do these things. Only scammers will. 

Other lies might involve a “suspended Social Security number” or supposed eligibility for government benefits. In all cases, that scammer will go to great lengths to convince you they’re with the government: fake caller ID or official-looking letters, for example. The agency name might be real or made up (but real-sounding), and some scammers might show you an employee ID or badge — all to seem more real. But they’re not.

To recognize and avoid a government imposter, keep these things in mind:

•Never ever will someone from the government say: “Your money isn’t safe. Move it to protect it.” Only a scammer will.

•Never ever will someone from the government threaten to suspend your government benefits if you don’t pay immediately. Only a scammer will. 

•Never ever will someone from the government demand that you pay with a payment app, cryptocurrency, wire transfer, or gift cards.

Talk to someone you trust if you’re worried about a problem with your account or identity — especially if the stranger says they’re from the government or the situation is serious or involves a crime. Visit ejcc.acl.gov/imposters for more on imposter scams. And if you spot an imposter scam — or any other type of scam — report it at ReportFraud.ftc.gov.

Government imposter scams are a serious problem: in 2025, the FTC received more than 375,000 reports about government imposters, with reported losses of $917 million.

The United States Attorney’s Office remains committed to protecting our seniors from the growing threat of elder fraud and financial exploitation.  As part of that effort, we have reached out to senior citizen groups and community organizations to provide information on common scams, warning signs and steps individuals can take to safeguard themselves and their loved ones.  We recently presented to a group of seniors at Congregation Shaarey Zedek and have other presentations planned for this summer.  For those senior citizen groups and community organizations interested in having a representative from the U.S. Attorney’s Office speak to their group, please contact Public Affairs Officer Gina Balaya at 313-226-9758 or email at gina.balaya@usdoj.gov.

To learn more about the department’s elder justice efforts please visit the Elder Justice Initiative page.  To learn more about who to avoid imposter scams visit ejcc.acl.gov/imposters

BAY CITY – A federal judge today sentenced Wilmer Rodriguez, 39, a Honduran illegal alien, to 46 months in prison for unlawfully re-entering the United States following a state conviction for an aggravated-felony, announced Jerome F. Gorgon Jr., United States Attorney of the Eastern District of Michigan.

Gorgon was joined in the announcement by Acting Chief Patrol Agent Javier Geronimo, Jr., U.S. Border Patrol Detroit Sector. 

According to court records, United States Border Patrol Agents arrested Rodriguez in Grayling, Michigan just over a year after he had been deported following his state convictions for first-degree criminal sexual conduct, felony kidnapping, and a felony firearm offense. Rodriguez had previously been removed from the United States on four separate occasions. He was also previously charged federally and convicted of unlawful reentry after deportation in 2014.

“This case underscores the importance of maintaining secure borders. The government has repeatedly removed this violent criminal from our country. The last time we sent him back after he was convicted of Michigan’s most severe sexual crime, kidnapping and felony firearm. He still returned and broke our laws. We do not want criminal aliens breaking in and hurting Americans,” said U.S. Attorney Gorgon. 

“This case underscores the critical importance of strong, collaborative border enforcement and the consequences of repeat illegal entry,” said Acting Chief Patrol Agent Javier Geronimo, Jr., U.S. Border Patrol Detroit Sector. “Our agents are committed to protecting Michigan communities from individuals who pose a threat to public safety.”

The United States Border Patrol Sault Sainte Marie Station investigated this case, with significant assistance from the Michigan State Police. The case was prosecuted by Assistant U.S. Attorney Grant Newman.

DETROIT - The United States Attorney’s Office for the Eastern District of Michigan presented the Department of Justice’s Hometown Hero Award to six first responders whose extraordinary courage and bravery during two separate critical incidents saved lives and ensured public safety. 

The Hometown Hero award commemorates the 250th anniversary of the founding of the United States of America. It honors the enduring ideals of Liberty, Service, and Civic Responsibility. This award is dedicated in recognition of a steadfast commitment to these ideals and an embodiment of the spirit upon which our Nation was founded. 

“These brave men answered the call without hesitation. They held the line for us against terrorists who attacked and burned a church and temple. And through their sacrificial acts, these American heroes saved countless lives. We thank God for each of them,” said United States Attorney Jerome F. Gorgon Jr. 

The honorees include Michigan Conservation Officer Luke Robare (not pictured) and Grand Blanc Township Police Officer Jason Carpentier, who were honored for their tremendous composure, courage, and bravery during a terror attack. These men were the first to respond to a September 28, 2025, call regarding an active shooter at the Jesus Christ House of Latter-Day Saints, where hundreds of worshipers were in attendance. Upon arrival at the scene, the officers heard a barrage of gunfire in the parking lot of the church where members of the congregation were fleeing from the assailant, who was armed with an AK-47. Both officers selflessly ran together toward the sounds of gunfire, engaged the assailant with their department-issued rifles, and immediately ended the threat. This devastating attack resulted in four innocent lives being taken and eight more injured due to gunfire. Without these officers’ brave, courageous actions, many more lives could have been lost, as there were hundreds of church members in attendance.

Also recognized were the Temple Israel Security Team who displayed tremendous composure, courage, and bravery during a terror attack. These men were working the day a Hezbollah-inspired attacker drove his vehicle into the synagogue in a targeted act of violence against the Jewish community. The officers took immediate action to stop the attacker before he could kill any of the nearby children and teachers who were in the building at the time of the attack. They bravely stood between the attacker and the dozens of innocent men, women and children who were worshiping at the Temple that day. Their actions prevented what would have been a tremendous loss of life and are a testament to their bravery and professionalism. 

For more information on Freedom 250 and the Hometown Hero award, go to https://freedom250.org

DETROIT – Eight individuals associated with the University of Michigan were indicted for their alleged roles in conspiracies to threaten University of Michigan leaders, law enforcement, and businesses, including the Jewish Federation of Metropolitan Detroit, announced U.S. Attorney Jerome F. Gorgon Jr. Special Agent in Charge Jennifer Runyan of the FBI Detroit Field Office joined Gorgon in the announcement. 

A federal grand jury returned an indictment against Zainab Aliasgar Hakim (Canton, Michigan) (age 23), Amatullah Aliasgar Hakim (Ann Arbor, Michigan) (age 21), Paige Elizabeth Feyock (Ann Arbor, Michigan) (age 26), Ahmet Kerem Korkaya (Milwaukee, Wisconsin) (age 28), Jonathan Hongru Zou (Ann Arbor, Michigan) (age 22), Alexander Matthew Sepulveda (Chicago, Illinois) (age 23), Mariam Muhammed Odeh (Dearborn, Michigan) (age 24), and Colin Hunter Weger (Ann Arbor, Michigan) (age 24).

“In America, we rule by law not by fear. These alleged threats and attempts to terrorize government officials, businesses, and the Jewish Federation are anti-American. We will counter intimidation with justice,” said U.S. Attorney Gorgon. 

“No one has the right to threaten, intimidate, and coerce public officials, law enforcement officers, community institutions, or their families. In the dead of night, masked and hooded defendants allegedly threw noxious chemicals through the windows of families’ homes and taped demand letters to their front doors. At every step they attempted to cover their tracks and delete evidence of their crimes. Those who engage in coordinated campaigns of threats and intimidation should expect to be held fully accountable under federal law,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “This multi-state operation led to the arrests of numerous defendants across Michigan, Illinois, and Wisconsin for alleged criminal activity committed within our state. I am grateful for the exceptional work of the dedicated FBI Detroit team, alongside our partners from FBI Chicago, FBI Milwaukee, University of Michigan Department of Public Safety, Ann Arbor PD, Huntington Woods PD, City of Plymouth PD, Bloomfield Twp PD, Canton PD, Chicago PD (Illinois), Milwaukee PD, Southfield PD, Novi PD, Romulus PD, West Bloomfield PD, Michigan State Police, Ypsilanti PD, Eastern Michigan University PD, and the Michigan Intelligence Operations Center, whose collaboration made this operation possible."

After the October 7, 2023, Hamas terrorist attacks in Israel, the defendants and unindicted conspirators enacted a series of coordinated “actions” threatening University of Michigan leaders, law enforcement, and businesses. Seemingly prompted by their perception of the University of Michigan’s and other victims’ purported financial support of Israel, the conspirators insisted publicly that they “must escalate, mobilize, and organize to demand divestment by any means necessary.” 

According to the indictment, on October 20, 2023, the defendants publicly posted a list of demands on social media directed at University of Michigan leadership. Among the demands, they required the University to make a “full and complete divestment” from Israel and any businesses supporting Israel. Unsatisfied by the University’s response, the defendants “prepared to take action” against the leadership by what they called “autonomous actions,” which included forcibly entering and occupying University of Michigan buildings, defacing buildings, and blocking and disrupting events on campus. They also posted threats on the internet that included photos of their “autonomous actions.” 

Below are two examples of the alleged threats posted to social media after “autonomous actions” targeting the homes of a University of Michigan elected official and the University of Michigan Provost. 

The defendants also allegedly held meetings to identify targets of their “autonomous actions.” They used the internet to research personal addresses, photographs, political and social connections, business ownership, and other personal details of the targets. They also discussed methods by which to harm the targets and their families, including poison, bombs, and psychological torture. For example, on May 21, 2024, Feyock and then-medical student Korkaya agreed to “kill,” “torment,” and “terrorize” their targets and families.  Referring to one victim, Korkaya stated his “entire family” was on his “hit list” Feyock added that they should “get” the “kids” of two victims.  Korkaya, referring to another victim, stated, “I’m gonna be the dirtiest f------- doctor ever / I’m gonna be [victim’s] doctor / poison her a-- slowly.” Feyock agreed, “We need people following [victim] / get into that house then burn it down.” 

As part of the conspiracy, the defendants are alleged to have traveled at night to the targeted homes and businesses. They damaged and defaced homes and businesses with spray-painted messages, threats, and symbols, including inverted triangles, which Hamas has used in its military videos to mark targets for death; red handprints, which Hamas has used to symbolize the Ramallah Lynching of 2000 and the murder of two Israeli military reservists during the Second Intifada; and phrases such as “INTIFADA” and “DIVEST NOW.” The defendants also left demand notes containing additional threats, caulked doors shut, bike-locked entryways, broke windows, and threw glass jars filled with butyric acid and dye into the homes. The defendants took photographs of the destruction and posted the photos online with “official statements” and additional warnings and threats, such as “you cannot hide” and “we only come back stronger.”

Below are photos of the alleged threats spray-painted on the Jewish Federation Building on the one-year anniversary of the October 7, 2023, Hamas terrorist attacks in Israel, as well as two other businesses. 

The indictment also charges Zainab Aliasgar Hakim and Paige Elizabeth Feyock with witness intimidation. In July and August 2024, Hakim and Feyock devised a plan to confront the victim, a University of Michigan student whom they believed may have been cooperating with federal authorities. They planned to convince the victim not to provide information about the defendants’ criminal activities. Hakim warned that the victim was “going to send us to federal prison.” Feyock explained, “we have to do something about [victim] / [victim] is actually a liability / the fact that [victim] is naming you to [unindicted conspirator] is a major issue.”  Feyock told other conspirators that the victim “has to be neutralized” and that she and Hakim were going to “strip search” the victim “to see if he is wearing a wire / not taking no chances with him.” Hakim and Feyock confronted the victim on August 6, 2024, and afterward, Feyock told another conspirator that the victim “knows not to talk about [the autonomous actions].” 

Alexander Matthew Sepulveda is also charged in the indictment with destruction of property to prevent seizure. According to the indictment, Sepulveda and Jonathan Hongru Zou were involved in an “autonomous action” at the home of the University of Michigan’s Provost. Sepulveda and Zou threw two glass jars filled with a blue substance and food compost through a window of the Provost’s home.  They also spray painted the home with inverted red triangles and phrases including “Divest” and “Free Palestine.” In April 2025, law enforcement attempted to execute a search warrant at Sepulveda’s home. An unindicted conspirator warned multiple conspirators about the warrant via encrypted group chats. In response, Sepulveda is alleged to have cleared the contents of his phone and laptop.

Upon conviction, the alleged crimes carry the following penalties: Conspiracy to Transmit a Threat: up to 5 years’ imprisonment and a fine up to $250,000; Conspiracy to Tamper with a Witness: up to 20 years’ imprisonment and a fine up to $250,000; and Destruction of Property to Prevent Seizure: up to 5 years’ imprisonment and a fine up to $250,000.

This case was investigated by FBI Detroit with assistance from the following agencies: 

University of Michigan Department of Public Safety, Ann Arbor PD, Huntington Woods PD, City of Plymouth PD, Bloomfield Twp PD, Canton PD, Chicago PD (Illinois), Southfield PD, Novi PD, Romulus PD, West Bloomfield PD, Michigan State Police, Ypsilanti PD, Eastern Michigan University PD, Michigan Intelligence Operations Center, and the Michigan Department of Attorney General.

The case will be prosecuted by Assistant United States Attorneys Sarah Resnick Cohen, Maggie Smith, Matthew Roth, and Robert Kuhn. 

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

FLINT -   A Flint man was charged today in a criminal complaint with arson and other related offenses for setting fire to St. Mark Missionary Baptist Church, United States Attorney Jerome F. Gorgon Jr. announced. 

Gorgon was joined in the announcement by James Deir, Special Agent in Charge of the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). 

Charged was Billy Chambers, 63. Chambers appeared in federal court this afternoon and was temporarily detained pending a detention hearing which has been set for Wednesday in Bay City, Michigan. 

According to the criminal complaint, in the early morning hours of August 30, 2025, St. Mark Missionary Baptist Church in Flint, Michigan was intentionally set on fire. The incident was captured on St. Mark’s video surveillance cameras and shows a suspect, alleged to be Billy J. Chambers, setting the church on fire. In the video, Chambers brought a gas can wrapped in a black trash bag to the church and used an ignition device to set the church on fire.  As a result of the fire damage, St. Mark was unable to hold services at the church for approximately two months.

Chambers has been charged with arson, obstruction of persons in the free exercise of religious beliefs and arson to commit a federal offense. Chambers faces a mandatory minimum sentence of 15 years in prison and maximum sentence up to any term of imprisonment. 

“This alleged attempt to burn down a church is yet another attack against Christians. But the Department of Justice will protect all Americans and their right to worship without fear,” said U.S. Attorney Gorgon. 

“Setting fire to a house of worship is a deliberate attack on our community and an assault on one of our most fundamental freedoms in this country,” said ATF Detroit Field Division Special Agent in Charge James Deir. “Billy Chambers’ alleged actions in this case are deeply disturbing, vile, and completely unacceptable. ATF is committed to protecting our communities from violent crime and will relentlessly pursue those who commit these heinous acts of violence. No one has the right to intimidate, terrorize, or disrupt the free exercise of religion. Those who commit these crimes should most certainly expect justice to be swift and severe.”

The investigation is being conducted by agents of the ATF and the Flint Police Department and being prosecuted by Assistant United States Attorney Anthony Vance. 

Note, the press release has been updated to include a quote from EPA.

Applied Partners LLC was sentenced today to pay a $500,000 fine and complete a two-year term of probation for the company’s illegal handling of regulated asbestos containing material (RACM) at a site in Saginaw, Michigan.

The company had previously pleaded guilty to violating the Clean Air Act’s asbestos work practice standards for its role in demolishing a structure in 2019. Inhalation of asbestos fibers can lead to cancers like mesothelioma and lung cancer or noncancerous conditions like asbestosis.

According to court documents, Applied Partners  acquired a defunct industrial site in Saginaw in 2018 with the intention of demolishing and scrapping structures on the property before reselling it. In fall 2019, despite knowing that RACM remained in a structure called the Power House, Applied Partners directed another company to begin demolition. 

Between about Sept. 19 and Oct. 24, 2019, employees of the company performing the demolition used heavy machinery to break apart brick walls and to pull down at least one large facility component covered in RACM from the upper floors of the structure. The demolition was done in violation of numerous asbestos work practice standards. Demolition ceased once regulators performed sampling and informed Applied Partners that it would need to perform remediation of remaining RACM before demolition could continue.   

“Applied Partners knowingly disregarded asbestos work practice standards designed to protect human health,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “Today’s sentence demonstrates that public health is among our highest priorities, and we will prosecute those who violate environmental laws.”

“By demolishing an old industrial site with intentional disregard of the asbestos at the site, Applied Partners exposed workers to hazardous asbestos fibers. The asbestos regulations and work practice standards protect Americans from cancer and other harm from asbestos,” said EPA’s Assistant Administrator Jeffrey A. Hall of the Office of Enforcement and Compliance Assurance. “This prosecution and sentencing shows that companies that profit off of exposing American workers or communities to hazardous air pollutants will be held accountable.”

The EPA’s Criminal Investigation Division investigated the case. The Michigan Department of Natural Resources Law Enforcement Division, Environmental Investigation Section, assisted with the investigation.

Trial Attorney Rachel Roberts of ENRD’s Environmental Crimes Section, Assistant U.S. Attorney Katharine Hemann for the Eastern District of Michigan, and EPA Regional Criminal Enforcement Counsel Samuel Cardick prosecuted the case.

DETROIT – The ringleader of a $63 million scheme that involved stealing checks from the mail and selling them online was sentenced to just over 10 years in prison yesterday, United States Attorney Jerome F. Gorgon Jr. announced today. 

Gorgon was joined in the announcement by U.S. Postal Service Inspector General Tammy Hull; Detroit Division Inspector in Charge Felicia B. George, U.S. Postal Inspection Service, Special Agent in Charge Karen Wingerd, Detroit Field Office, Internal Revenue Service - Criminal Investigation; Special Agent in Charge Andrew McKay, Treasury Inspector General for Tax Administration, Mid-Atlantic Field Division; and Anthony P. D'Esposito, Inspector General, U.S. Department of Labor.

Jaiswan Williams (32, of Rochester Hills) was the last of four defendants to be sentenced. Co-defendant Daquan Foreman (32, of Eastpointe), Vanessa Hargrove (40, of Detroit), and Crystal Jenkins (32, of Detroit), were all previously sentenced, as follows:  
 

• Foreman: 48 months in custody; 
• Hargrove: 12 months and 1 day in custody; 
• Jenkins: 1 day in custody, followed by 3 years’ supervised release. 

All four defendants, including Williams were sentenced by U.S. District Judge Judith E. Levy.   

Hargrove and Jenkins were United States Postal Service employees who diverted and ultimately stole checks and other negotiable instruments from the mail, including a high volume of tax refund checks issued by the U.S. Treasury. Williams and Foreman were the administrators of the online marketplaces used to sell the checks.

According to court records, postal employees Hargrove and Jenkins would provide the stolen checks to Williams and Foreman in exchange for payments. Williams and Foreman would take those checks and market them for sale via Telegram Messenger, a cloud-based, cross-platform instant messaging application.  Prices varied based on the face-value of the checks.  One of the Telegram channels, named “Whole Foods Slipsss,” was used to advertise high-dollar checks, while another channel, named “Uber Eats Slips,” was used to advertise lower-dollar checks.  “Slips” is a term commonly used in these schemes to refer to stolen checks. Transactions were completed off-platform using a variety of electronic payment systems.  Purchasers of these checks would then attempt to fraudulently cash them using a variety of methods. The investigation revealed that the two Telegram channels marketed more than 10,000 individual checks for sale, with a combined face value of more than $63M. 

Williams’s sentence also reflected a conviction for money laundering activities dating back to October 2022. In addition, he accepted responsibility for $1.5M in fraudulent pandemic unemployment insurance benefit claims he submitted between August and December 2020, using the personally identifiable information (PII) of dozens of individuals. 

“The sentencings in this investigation represent the hard work and dedication by USPS OIG Special Agents working alongside our federal law enforcement partners and the U.S. Attorney’s Office to bring charges in this mail theft investigation.” said Tammy Hull, Inspector General, U.S. Postal Service, “The OIG, along with our law enforcement partners, remain committed to safeguarding the U.S. Mail and ensuring the accountability and integrity of Postal Service employees and those external subjects who collude with them.”

"The sentencings in this case underscore the U.S. Postal Inspection Service's dedication to safeguarding the nation's mail system and holding to account those who seek to exploit it and, by extension, the American public," said Detroit Division Inspector in Charge Felicia B. George. "Let this be a warning: if you abuse the U.S. Postal Service and victimize the citizens who rely upon it, we will utilize every avenue and tool at our disposal to prosecute you to the fullest extent of the law."

“The stealing of checks is not a victimless crime. The stolen checks belonged to citizens, to help them make payments for vital services or help through a tough time,” said Special Agent in Charge Karen Wingerd, Detroit Field Office, IRS‑CI. “With today’s sentencing, all of those responsible are now held to account for exploiting the public and undermining trust in critical government systems. We are committed, along with our law enforcement partners, to using our unique expertise to track intricate financial systems, find criminals, and hold them accountable for the crimes committed.”

“The Treasury Inspector General for Tax Administration (TIGTA) aggressively investigates individuals who attempt to exploit U.S Treasury refund checks meant for hard working taxpayers for their own private gain,” said TIGTA Special Agent in Charge Andrew McKay . “TIGTA's mission is to protect the integrity of our nation's tax administration system.  We are committed to working with our law enforcement partners to ensure that those who violate federal laws are prosecuted to the fullest extent possible.”

“Jaiswan Williams exploited his platform as a rapper, using his celebrity status to rip off American taxpayers. These criminal acts will not be tolerated. We remain relentless in this war on fraud and will ensure every fraudster that attempts to undermine the American people receives their prison sentence. I want to thank the United States Attorney’s Office and our law enforcement partners that support this critical mission,” said Anthony P. D'Esposito, Inspector General, U.S. Department of Labor.

This multi-agency investigation was led by the U.S. Postal Service Office of the Inspector General (USPS-OIG), with the assistance of the U.S. Postal Inspection Service (USPIS); the Internal Revenue Service-Criminal Investigations (IRS-CI); the Treasury Inspector General for Tax Administration (TIGTA); and the Department of Labor Office of the Inspector General (DOL-OIG). It was prosecuted by Assistant U.S. Attorney Ryan A. Particka.  

DETROIT - Vincent Munster and Claude Kwe, both researchers with the National Institutes of Health (NIH) at the Rocky Mountain Laboratory were charged today in a criminal complaint with conspiracy to smuggle monkeypox into the United States and giving false statements to federal law enforcement, United States Attorney Jerome F. Gorgon Jr. announced. 

Gorgon was joined in the announcement by Jennifer Runyan, Special Agent in Charge of the Federal Bureau of Investigation, Detroit Field Office, Marty Raybon, Director of Field Operations, U.S. Customs and Border Protection and Special Agent in Charge Marcus L. Sykes of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). 

According to the criminal complaint, Vincent Munster, a citizen of the Netherlands, 53, is the Chief of the Virus Ecology Section, Laboratory of Virology at the Rocky Mountain Laboratory in Hamilton, Montana. Claude Kwe, a citizen of Cameroon, 38, is a research fellow in Munster’s section. The work of both men is focused on “emerging viral pathogens” and how those pathogens “cross the species barrier.” They work at a Biosafety Level 4 laboratory, which employs the highest level of biosafety precautions for scientific research of known and potential human pathogens.

On January 25, 2026, Munster and Kwe arrived at the McNamara Terminal at Detroit Metropolitan Airport with travel originating from Brazzaville, Republic of Congo, where an outbreak of monkeypox was occurring. Monkeypox is an infectious virus that can result in painful rash, enlarged lymph nodes, fevers and other ailments.

Munster and Kwe were inspected and interviewed by Customs and Border Protection (CBP) officials upon their arrival. CBP officers observed Kwe and Munster traveling with a large black plastic case. Munster and Kwe falsely told CBP officers that the black case contained diagnostics and testing equipment. But subsequent investigation by CBP and FBI agents revealed that the case actually contained 113 vials in Styrofoam coolers. As of the date of the complaint, the FBI has tested 20 of the 113 vials. Seventeen of them contained deactivated monkeypox virus, one contained the Chickenpox virus, and two contained only human DNA. 

“These NIH experts apparently broke our laws by smuggling viral pathogens on a packed commercial airplane from an outbreak in the Republic of Congo. Let that sink in,” United States Attorney Gorgon stated.

“No researchers should believe their positions, credentials, or professional status place them above the law,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “The allegations in this case are serious. They involve the dangerous and unlawful smuggling of deactivated Mpox virus into the United States and alleged efforts to mislead our federal agents. I am grateful for the outstanding and diligent work of the FBI Detroit JTTF, FBI Billings’ Missoula Resident Agency, the U.S. Customs and Border Protection team at Detroit Metro Airport, and the U.S. Department of Health and Human Services – OIG, for keeping our communities safe.”

“The arrest of these individuals on serious federal charges sends a clear and unmistakable message that no one—including HHS employees who have an obligation to safeguard our federal programs—is above the law.  Any deliberate effort to conceal and smuggle biological materials into the United States without proper authorization is a breach of the public’s trust and could have placed the public at risk,” said Special Agent in Charge Marcus L. Sykes of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work alongside our law enforcement partners to ensure that anyone who is entrusted with protecting the health and well-being of the public is held fully accountable.”

“We have zero tolerance for anyone who attempts to exploit our research frameworks, circumvent our border enforcement processes, or deceive investigators,” said CBP Director of Field Operations Marty C. Raybon. “Along with our law enforcement partners, we will remain fiercely vigilant in neutralizing biological threats—or otherwise— and continue to hold accountable those who jeopardize the safety and security of the American people.”

Munster and Kwe face a maximum sentence of five years in prison. 

The investigation is being conducted by the Detroit Field Office of the Federal Bureau of Investigation, the U.S. Customs and Border Protection Detroit and the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). 

A complaint is only a charge and not evidence of guilt. The defendants are presumed innocent until proven guilty. It will be the government’s burden to prove guilty beyond a reasonable doubt.

DETROIT – Former FBI Special Agent Jeffrey Royer pleaded guilty today to defrauding investors in a foreign currency (“forex”) trading scheme, United States Attorney Jerome F. Gorgon, Jr. announced.

Gorgon was joined in the announcement by Special Agent in Charge Jennifer Runyan, Federal Bureau of Investigation.

Royer pleaded guilty to a charge of wire fraud and admitted that he defrauded multiple third-party investors. Royer acknowledged that while he told investors their money would be used for commodity futures trading, he fraudulently diverted a portion of investor funds for his own personal expenses. Royer also admitted he fraudulently told investors that their investment principal was protected against loss and that set future earnings would occur. After suffering significant trading losses, Royer repeatedly lied to his investors and provided them with fictious monthly account statements showing that their investments were earning significant positive returns month after month when their investments were, in fact, suffering significant losses. Royer also admitted that his conduct violated numerous regulatory requirements of the Commodity Exchange Act.

As part of his plea agreement, Royer has agreed to pay restitution of $576,818.83 to his victims. 

“Investment fraud is theft, and no one, including a former FBI Special Agent is entitled to a different set of rules,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “The defendant betrayed the trust of investors, concealed the truth, and caused significant financial harm through a fraudulent foreign currency trading scheme. Today’s plea holds him accountable for those actions. I am grateful to the dedicated members from FBI Detroit for their diligent work throughout this investigation.”

Royer was released from the Federal Bureau of Prisons in 2012 after serving a multi-year prison sentence for racketeering conspiracy, securities fraud conspiracy, securities fraud, obstruction of justice, and witness tampering. Those charges stemmed from Royer’s corrupt use of his position as an FBI agent to steal confidential criminal law enforcement information about companies under investigation by the FBI and the Securities and Exchange Commission. Royer passed that confidential information along to a “short seller” trader in exchange for the promise of cash and future employment. Using the confidential information provided by Royer, that trader established short positions in the stocks of companies under investigation.

Sentencing is set for September 3, 2026, before Judge Mark A. Goldsmith. Royer faces up to 20 years’ imprisonment. 

The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Andrew J. Yahkind.

DETROIT – A small business’s former financial controller, who engaged in a five-year pattern of embezzling funds from her employer, pleaded guilty today, announced United States Attorney Jerome F. Gorgon, Jr.

Gorgon was joined in the announcement by Jared Murphey, Acting Special Agent in Charge of Homeland Security Investigations - Detroit.

Deborah Beaudoin, age 56, from Canton, Michigan, was convicted of wire fraud for orchestrating a scheme that caused over $598,000 in losses to the business where she worked. 

At the hearing, Beaudoin admitted to devising and executing a scheme to order and obtain unauthorized company debit cards linked to the company’s bank account. Beaudoin made repeated false and fraudulent entries on company ledgers to make the withdrawal of money using these cards appear legitimate. Once Beaudoin obtained the cards, she withdrew the money at local ATMs and deposited a portion of those funds into her personal bank accounts. Over the five-year scheme, Beaudoin obtained at least $598,000 in fraudulent funds. 

Sentencing before United States District Judge Judith Levy will be set after a presentence report is prepared. Beaudoin faces a possible maximum sentence of not more than 20 years’ imprisonment without the possibility of parole, a fine of not more than $250,000, and up to three years of supervised release following any term of imprisonment. 

The case was investigated by the Department of Homeland Security, Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Jason Dorval Norwood.

DETROIT – A Detroit man with multiple felony convictions and on federal supervised release was sentenced to over 16 years’ imprisonment today for possession of firearms, United States Attorney Jerome F. Gorgon, Jr. announced.

Gorgon was joined in the announcement by ATF Detroit Field Division Assistant Special Agent in Charge Justin Meyer.

Cartez Howard, 38, of Detroit, Michigan was convicted by a jury of two counts of possession of firearms as a felon in December 2025. On May 26, 2026, United States District Judge Laurie J. Michelson sentenced Howard to 200 months in federal prison.

According to court records, in September 2025, Howard, a convicted felon with a violent criminal history, was on federal supervised release and got into an argument over a parking spot outside a business. The argument ended when Howard pulled an AR-style rifle from his car, pointed it at the victim, and fired a shot at the victim’s feet. Howard then tried to grab the victim’s glasses before driving away. The victim followed Howard to report him. Howard drove into a residential neighborhood and fired approximately 30 shots. Eleven days later, Howard drove the same car to a gas station with the same rifle in the backseat, and abandoned the car when police located it. After Howard was arrested, agents searched Howard’s apartment, where they found a second gun hidden in his bedroom closet—tucked under a baby blanket in the room he shared with his infant child and the child’s mother.

“This man is the kind of hell-raiser that can make a neighborhood unlivable. He did just about everything wrong with a gun, except kill somebody. We are thankful that the ATF took him off of our streets,” said U.S. Attorney Gorgon.

“Howard repeatedly showed a complete disregard for human life and the safety of those around him — including children inside the home where firearms were hidden. Violent felons who continue to arm themselves and terrorize our communities will be held accountable. This 16 years plus sentence sends a clear message that ATF and our law enforcement partners will relentlessly pursue armed violent offenders.” — ATF Detroit Field Division Assistant Special Agent in Charge Justin Meyer.

The ATF investigated this case. Assistant U.S. Attorneys Nicholas McIntyre and Nhan Ho prosecuted the case on behalf of the United States.

DETROIT – A former U.S. Customs and Border Protection Officer was sentenced yesterday on charges of distribution of child pornography, United States Attorney Jerome F. Gorgon, Jr. announced.

Gorgon was joined in the announcement by Jennifer Runyan, Special Agent in Charge of the Federal Bureau of Investigation.

Scott Rocky, 58, of Center Line, Michigan stands convicted of distribution of child pornography. United States District Judge Terrence G. Berg sentenced Rocky to 72 months in federal prison.

According to court records, in April 2025, Rocky shared and downloaded hundreds of files of child sexual abusive material (CSAM) online via peer-to-peer applications. Following the execution of a search warrant at Rocky’s residence, agents located on his computer over five hundred accessed images of CSAM, including those depicting the sexual abuse of toddlers, infants, and prepubescent children.

“We trust law enforcement to uphold the law and protect Americans. This pervert violated our trust and broke the law so that he could hurt children. He deserves every day of his sentence,” said U.S. Attorney Gorgon.

“This sentence should serve as a warning: no badge, title, or position of public trust will shield anyone who exploits our children from facing justice under federal law,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “Public trust amongst law enforcement officials is essential. This former U.S. Customs and Border Protection Officer distributed child sexually abuse material, which is disturbing and does not represent the men and women who serve honorably in law enforcement. Our FBI Detroit Crimes Against Children Squad, alongside the CBP’s Office of Professional Responsibility, worked tirelessly to hold this sexual predator accountable and protect our children from further exploitation.”

The FBI investigated this case. Assistant U.S. Attorney Nhan Ho prosecuted the case on behalf of the United States.

DETROIT – A former doctor pleaded guilty today to receipt of child pornography, United States Attorney Jerome F. Gorgon, Jr. announced.

Gorgon was joined in the announcement by Jennifer Runyan, Special Agent in Charge of the Federal Bureau of Investigation, Detroit Field Division.

Pleading guilty was Lincoln Erickson, 32, of Farmington Hills, Michigan. Erickson was arrested by FBI agents on December 10, 2025, and has remained in custody. Prior to his arrest, Erickson was a medical resident at a public university and worked in the Detroit metropolitan area.

According to court records, agents discovered on Erickson’s phone videos of minors engaged in sex acts and AI-generated pornography depicting nude children touching adult men. Erickson also attempted to convince another man to allow Erickson to bathe the other man’s children and admitted to making plans to travel to the man’s house for that purpose.

“This pervert was lurking among our trusted medical professionals. At the same time, he was feeding his disgusting appetites and plotting to abuse little children. Thankfully, the FBI caught him when they did,” U.S. Attorney Gorgon said.

“Any individual who records, possesses, or distributes child sexual abuse material should expect severe consequences under federal law,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “This defendant, a former doctor, possessed videos of children engaged in sexual activity. We look forward to seeing this predator sentenced. Our FBI Detroit Crimes Against Child Squad, alongside our partner task force officers from the Detroit Police Department, continues to do outstanding work to safeguarding our youth and holding accountable those who seek to harm our most vulnerable citizens in Michigan.”

Erickson is scheduled to be sentenced on September 15, 2026. As part of his sentence, Erickson will be required to register as a sex offender.

This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Zachary Zurek. 

DETROIT – A former federal corrections employee pleaded guilty yesterday to sexually abusing a federal inmate, United States Attorney Jerome F. Gorgon, Jr. announced.

Gorgon was joined in the announcement by Matthew Loux, Special Agent in Charge of the Department of Justice Office of the Inspector General’s Midwest Region, and Jennifer Runyan, Special Agent in Charge of the Detroit FBI Field Office.

On February 5, 2025, Arthur Foster, 41, of Detroit, Michigan, while serving as a corrections employee at Cherry Health Community Treatment Center, a federal residential reentry center, told Victim Inmate-1 (VI-1) to meet him in the restroom. At the time, VI-1 was under Foster’s custodial authority. When she arrived in the restroom, Foster sexually abused her.

Federal law and prison rules mandate a zero-tolerance policy for sexual abuse, sexual assault and harassment in all U.S. correctional facilities.

“This defendant abused the public trust in the worst way by sexually assaulting a person under his care. This is crime hurts the victim, the institution, and our system of justice,” stated U.S. Attorney Gorgon. 

“Sexual abuse by anyone, especially someone entrusted with the custody and care of inmates, is an intolerable abuse of power,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “Today’s guilty plea makes clear that this former corrections employee betrayed public trust and violated the most basic standards of human dignity. Our office will continue to pursue every individual who abuses their position to commit acts of sexual violence against those in federal custody.”

“Inmates should never experience sexual abuse by corrections employees. The Department of Justice Office of the Inspector General will continue to aggressively investigate allegations of sexual abuse by federal correctional employees and work with our partners to bring perpetrators to justice,” stated DOJ OIG Special Agent in Charge Loux.

The charge, sexual abuse of a detainee, carries a maximum sentence of up to 15 years’ imprisonment, and a fine of up to $250,000.

The investigation of this case was conducted by the Department of Justice Office of the Inspector  General, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.

Two Canada-based steel companies, Farjess Inc. and Royal Canadian Steel Inc., along with their part-owner and president, Feroz Jessani, have agreed to pay $19 million to resolve allegations that they violated the False Claims Act by knowingly and improperly failing to pay duties owed on flat-rolled steel that was manufactured in Europe and Asia.

“Import duties serve an important role in protecting our national interests generally and the American steel industry in particular,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department of Justice will zealously pursue anyone who fraudulently evades the duties owed on steel products imported into this country.”  

“Our border is the frontline of American industry. Approximately half of all U.S.-Canada land trade flows through our district.” said U.S. Attorney Jerome F. Gorgon Jr. for the Eastern District of Michigan. “And we will continue to protect our businesses from foreign fraudsters,”

“This settlement underscores the United States’ strong commitment to enforcing trade laws and maintaining the integrity of our supply chains. U.S. Customs and Border Protection is proud to have supported the Department of Justice in this cross-border investigation, ensuring that all duties owed to the government are collected and that fair competition is preserved,” said Acting Director Jonathan Restivo of Center of Excellence and Expertise (CEE), Base Metals. “This case sends a clear message that CBP, in partnership with our federal counterparts, will continue to uphold the rule of law and protect the interests of American businesses and consumers.”

“Since 1789, the United States has imposed tariffs and collected customs duties on imports to fund government operations, provide public services and protect American industry,” said Acting Special Agent in Charge Jared Murphey of Homeland Security Investigations’ Detroit field office. “This record-setting settlement underscores HSI’s commitment to protecting American manufacturers and consumers from unfair trade practices and ensuring the integrity of our nation’s economic policies.”

To enter goods into the United States, an importer must declare, among other things, the country of origin of the goods, the value of the goods, whether the goods are subject to duties, and the amount of duties owed. U.S. Customs and Border Protection (CBP) collects applicable duties.

The settlement resolves allegations that, from May 2019 through January 2025, Farjess Inc., Royal Canadian Steel Inc., and Feroz Jessani avoided duties owed to the United States by knowingly misrepresenting to CBP that the country of origin of certain flat-rolled steel was Canada or the United States, when in fact they knew the true country of origin was China, Indonesia, Italy, Turkey, or Vietnam.

The settlement resolves a civil lawsuit filed by Shamsh Dhala, a broker who worked with Farjess Inc., under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and to share in a portion of the government’s recovery. The lawsuit was filed in the Eastern District of Michigan and is captioned United States ex rel. Dhala v. Royal Canadian Steel Inc. et al., No. 2:23-cv-12097 (E.D. Mich.). As part of today’s resolution, Mr. Dhala will receive approximately $3,610,000 of the settlement proceeds.

This year the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules.  The Civil Division’s FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.

The Civil Division coordinated this action through the Department of Justice’s Trade Fraud Task Force, a cross-agency law enforcement effort. The Task Force was created to leverage all of the Department’s tools and authorities to prevent trade fraud that deprives the government of vital revenue, threatens critical domestic industries, undermines consumer confidence, and weakens national security. The Task Force is designed to pursue enforcement actions against parties who seek to evade tariffs and other duties, as well as smugglers who seek to import prohibited goods into the American economy. The Justice Department encourages whistleblowers to alert the government to credible allegations of fraud, including utilizing the qui tam provisions of the False Claims Act or through the Department’s Corporate Whistleblower Program at CorporateWhistleblower@usdoj.gov using the form available here.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from U.S. Customs and Border Protection’s Office of the Associate Chief Counsel, Homeland Security Investigations, and the Justice Department’s Office of Foreign Litigation.

The matter was handled by Trial Attorney James Nealon and Assistant U.S. Attorney John Postulka for the Eastern District of Michigan.

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

DETROIT – Chanise Coyne, 46, pleaded guilty today to executing a multi-million-dollar fraud scheme involving supposed child modeling events, United States Attorney Jerome F. Gorgon, Jr. announced.

Gorgon was joined in the announcement by Special Agent in Charge Jennifer Runyan, Federal Bureau of Investigation.

Coyne pleaded guilty to a charge of wire fraud and admitted that she obtained over $4.6 million from a local family by fraudulently claiming that money would be used for advance fees associated with the participation of the family’s young daughter in various modeling events across the country. Coyne also admitted that she generated false and fraudulent records—including fake text messages, emails, and invoices—relating to the supposed placement of that young girl in modeling events. The money obtained by Coyne was fraudulently misappropriated for her own benefit and not used in connection with the placement of the young girl in a single modeling event. Instead, Coyne used significant sums of her fraud proceeds for gambling.

“Coyne exploited a child’s dreams and ripped off a local family with her fake claims. But she will face real consequences,” stated U.S. Attorney Gorgon.

“The defendant’s guilty plea is an acknowledgment that she deliberately calculated and executed a multi-million-dollar scheme that violated a family’s trust, and she will face the full measure of accountability for her actions,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “Our work does not stop here. FBI Detroit remains relentless in pursuing those who attempt to defraud Michigan families and in ensuring that those individuals’ illicit activities are brought to a swift and decisive end.”

Sentencing is set for September 1, 2026, at 2 p.m. before Judge David M. Lawson. Coyne faces up to 20 years’ imprisonment.

The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Andrew J. Yahkind. Related forfeiture matters are being handled by Assistant United States Attorney Kelly Fasbinder. 

DETROIT – A New York man who led a multi-state check fraud scheme pled guilty today, announced United States Attorney Jerome F. Gorgon, Jr.

Gorgon was joined in the announcement by Inspector in Charge Felicia George of the Postal Inspection Service’s Detroit Division, and Special Agent in Charge Philip Spampinato of the Transportation Security Administration Office of Law Enforcement/Investigations Detroit .

Nazaly Mason Smith, age 33, originally from Maryland, was convicted of conspiracy to commit bank fraud for a scheme where he was responsible for over $1,500,000 in losses.

At the hearing, Smith admitted to leading a check fraud conspiracy where he provided his subordinates with fake identification documents and stolen personal identifiable information (PII) for several victims. Smith then trained them to memorize the victims’ PII, open bank accounts in the victims’ names, and later fraudulently deposit the stolen checks.

Sentencing before United States District Judge Mark A. Goldsmith will occur after a presentence report is prepared. Smith faces a possible maximum sentence of not more than 30 years’ imprisonment without the possibility of parole, a fine of not more than $1,000,000, and up to five years of supervised release following any term of imprisonment.

The case was investigated by the Department of Homeland Security, TSA Investigations and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Jason Dorval Norwood and K. Craig Welkener. 

DETROIT – A Grosse Pointe Woods doctor was convicted yesterday by a federal jury in Detroit for failing to declare and pay taxes on income he earned from illegally selling controlled substance prescriptions as well as failing to declare and pay taxes on income received from corporations he controlled but registered in the names of other individuals, announced United States Attorney Jerome F. Gorgon, Jr.

Gorgon was joined in the announcement by Karen Wingerd, Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation (IRS-CI).

Convicted was Peter Nwoke, 50. The trial which began on April 7, 2026, was conducted before United States District Denise Page Hood.

The charges on which Dr. Nwoke was convicted arose from the operation of his medical practice, Divine Medical Care and Divine Medical Services, which largely involved visiting homebound Medicare patients in Detroit.  In order to avoid paying taxes Nwoke also incorporated two additional corporations, City Medical and Divine Medical Center, which he placed in the names of nominees.  While Nwoke controlled the bank accounts and reaped profits from businesses incorporated in the names of others, he did not report that income or pay taxes on the money he received.  Nwoke also engaged in the business of unlawfully selling controlled substance prescriptions for highly addictive opioids, charging $500 a prescription for Oxycontin 80mg or oxycodone 30mg.  The prescriptions were then filled by the purchasers and sold on the street market.  When he deposited some of the cash he received from pill sales in 20 different bank accounts, he failed to declare it as income or pay taxes on it.

According to evidence presented at trial, Nwoke underreported his taxable income for the years 2011, 2012 and 2013 by a total of more than $2 million.  Nwoke underreported his tax due and owing for those years by more than $725,000.  He paid taxes totaling $29,424 when he should have paid $849,088 in taxes.  In one tax year he paid $500 in taxes on income of over $400,000.

During the tax years in question Nwoke prescribed over 2.8 million dosage units of prescription drug-controlled substances.  He deposited over $1.4 million in cash in his collection of bank accounts.  After one of his confederates in the pill business was raided by the FBI, Nwoke told him “They’ll never get me, because I keep my paperwork together.”

Nwoke is scheduled to be sentenced on September 10, 2026.  The defendant’s sentence will be determined after consideration of the sentencing guidelines.

The defendant has pending against him three counts of false statement/perjury, based on his testimony at an earlier trial on the tax charges.  That trial in 2022 ended in a mistrial, since that jury was unable to agree on a verdict.  The perjury charges were severed from the tax charges and will be scheduled for trial at a later date.  Nwoke is presumed innocent of these charges unless and until proven guilty beyond a reasonable doubt.

The investigation was conducted by the Internal Revenue Service, with assistance from many other federal agencies.

The trial was conducted by Assistant United States Attorneys Rob Moran and Wayne F. Pratt.  

DETROIT — A Michigan man was sentenced today to 20 years in federal prison after having been convicted by a jury last year on two charges of attempting to provide material support to the Islamic State of Iraq and al-Sham, commonly known as ISIS, a designated foreign terrorist organization, and for being a felon in possession of a destructive device, announced United States Attorney Jerome F. Gorgon, Jr.

Gorgon was joined in the announcement by Assistant Attorney General for National Security John A. Eisenberg and Special Agent in Charge Jennifer Runyan, Federal Bureau of Investigation, Detroit Division.

Aws Mohammed Naser, 38, formerly of Westland, Michigan, was convicted last year following a five-week trial. The jury unanimously found that Naser twice attempted to provide material support to ISIS, in the form of personnel (including himself) and services, knowing that ISIS was a designated terrorist organization, and that ISIS engages in terrorism. In addition, Naser was found guilty of being a felon in possession of a destructive device. The jury deliberated approximately six hours before returning their verdict.

“This self-professed ‘soldier of the Caliphate’ and ‘son of the Islamic State’ has now faced American justice. We welcomed this traitor into our Nation with open arms. And he repaid us by building a bomb and helping our great enemy,” said U.S. Attorney Gorgon.

“Those who support terrorism or violent extremism against the United States should expect a lengthy prison sentence. Today’s outcome sends that message without question,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “Threats against our homeland and endangering American lives are what the FBI works day in and day out to prevent. Thanks to the thorough investigative work of our FBI Detroit Joint Terrorism Task Force and partner agencies, this defendant was identified, disrupted, and brought to justice.”

Evidence presented during the trial showed that Naser became radicalized in his early 20s and frequently posted extreme Salafi-Jihadist ideological content on his YouTube channel. Naser developed a close relationship with Russell Dennison, an aspiring Salafi-Jihadist preacher, and the two jointly traveled to Iraq in early 2012.

In August 2012, Naser returned to Michigan while Dennison traveled to Syria and joined the foreign terrorist organization Al-Nusrah Front, an Islamic State of Iraq-affiliate group that was a precursor to ISIS. Dennison is believed to have been killed in 2019 while fighting on behalf of ISIS in Syria. Once back in the United States, Naser started preparing to join Dennison. Naser consumed large amounts of terrorist propaganda materials, researched weapons, and watched gruesome videos depicting acts of violence such as beheadings. Naser and Dennison continued to communicate and discussed available travel routes through Lebanon and Turkey and the terror group’s urgent need for money to acquire firearms. Naser twice attempted to leave the United States for Syria to join the terror group. First, in November 2012, Naser booked a flight departing the United States and arrived at Detroit Metropolitan Airport with luggage that contained a rifle scope, cane sword, and a four-inch tactical knife. Naser’s attempt to join was thwarted when he was not allowed to board the plane. Undeterred, Naser purchased another one-way plane ticket, this time departing from Chicago O’Hare Airport bound for Beirut, Lebanon, in January 2013. Hours before his scheduled flight to Lebanon, Naser robbed a gas station. After the robbery, Naser took a bus to Chicago and attempted to board his flight to Lebanon with $2,000 in cash but was again denied boarding and returned to Michigan. Naser was later charged and convicted of armed robbery and served a three-year prison sentence.

Naser was released from prison and placed on parole supervision in 2016. Unable to travel to join ISIS, Naser renewed his oath to ISIS and focused his attention on how to support ISIS in the United States. Naser surreptitiously created social media accounts and joined invitation-only ISIS supporters’ chatrooms, groups, and private rooms where he obtained and viewed official ISIS media reports, publications, and other jihadi propaganda. Naser considered himself a “Son of the Islamic State,” and a “Solider of the Caliphate.” He solicited and obtained information on explosives from other ISIS supporters, received training from a bomb-maker, experimented with manufacturing explosives, and operated drones. He also downloaded a video that provided step-by-step instructions on the manufacture of an improvised explosive device (IED) using triacetone triperoxide (TATP), known as “The Mother of Satan.” In October 2017, the FBI searched Naser’s home and vehicle. In Naser’s basement, the FBI found a bomb-making lab and multiple drones, tools, and drone parts. In the lab, they recovered a ready-to-assemble destructive device which included precursor chemicals and components needed to make a TATP-based IED.

The FBI’s Joint Terrorism Task Force investigated the case.  First Assistant U.S. Attorney Saima Mohsin, U.S. Attorney Jerome F. Gorgon Jr., Assistant U.S Attorney Hank Moon for the Eastern District of Michigan, and the National Security Division’s Counterterrorism Section prosecuted the case.

A Michigan man was sentenced today to 20 years in prison after having been convicted by a jury last year on two charges of attempting to provide material support to the Islamic State of Iraq and al-Sham, commonly known as ISIS, a designated foreign terrorist organization, and for being a felon in possession of a destructive device, announced Assistant Attorney General for National Security John A. Eisenberg, U.S. Attorney Jerome F. Gorgon Jr. for the Eastern District of Michigan, and Special Agent in Charge Jennifer Runyan of the FBI Detroit Field Office.

Aws Mohammed Naser, 38, formerly of Westland, Michigan, was convicted last year following a five-week trial. The jury unanimously found that Naser twice attempted to provide material support to ISIS, in the form of personnel (including himself) and services, knowing that ISIS was a designated terrorist organization, and that ISIS engages in terrorism. In addition, Naser was found guilty of being a felon in possession of a destructive device. The jury deliberated approximately six hours before returning their verdict.

“This self-professed ‘soldier of the Caliphate’ and ‘son of the Islamic State’ has now faced American justice. We welcomed this traitor into our Nation with open arms. And he repaid us by building a bomb and helping our great enemy,” said U.S. Attorney Gorgon.

“Those who support terrorism or violent extremism against the United States should expect a lengthy prison sentence. Today’s outcome sends that message without question,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “Threats against our homeland and endangering American lives are what the FBI works day in and day out to prevent. Thanks to the thorough investigative work of our FBI Detroit Joint Terrorism Task Force and partner agencies, this defendant was identified, disrupted, and brought to justice.”

Evidence presented during the trial showed that Naser became radicalized in his early 20s and frequently posted extreme Salafi-Jihadist ideological content on his YouTube channel. Naser developed a close relationship with Russell Dennison, an aspiring Salafi-Jihadist preacher, and the two jointly traveled to Iraq in early 2012.

In August 2012, Naser returned to Michigan while Dennison traveled to Syria and joined the foreign terrorist organization Al-Nusrah Front, an Islamic State of Iraq-affiliate group that was a precursor to ISIS. Dennison is believed to have been killed in 2019 while fighting on behalf of ISIS in Syria. Once back in the United States, Naser started preparing to join Dennison. Naser consumed large amounts of terrorist propaganda materials, researched weapons, and watched gruesome videos depicting acts of violence such as beheadings.

Naser and Dennison continued to communicate and discussed available travel routes through Lebanon and Turkey and the terror group’s urgent need for money to acquire firearms. Naser twice attempted to leave the United States for Syria to join the terror group. First, in November 2012, Naser booked a flight departing the United States and arrived at Detroit Metropolitan Airport with luggage that contained a rifle scope, cane sword, and a four-inch tactical knife. Naser’s attempt to join was thwarted when he was not allowed to board the plane. Undeterred, Naser purchased another one-way plane ticket, this time departing from Chicago O’Hare Airport bound for Beirut, Lebanon, in January 2013. Hours before his scheduled flight to Lebanon, Naser robbed a gas station. After the robbery, Naser took a bus to Chicago and attempted to board his flight to Lebanon with $2,000 in cash but was again denied boarding and returned to Michigan. Naser was later charged and convicted of armed robbery and served a three-year prison sentence.

Naser was released from prison and placed on parole supervision in 2016. Unable to travel to join ISIS, Naser renewed his oath to ISIS and focused his attention on how to support ISIS in the United States. Naser surreptitiously created social media accounts and joined invitation-only ISIS supporters’ chatrooms, groups, and private rooms where he obtained and viewed official ISIS media reports, publications, and other jihadi propaganda. Naser considered himself a “Son of the Islamic State,” and a “Solider of the Caliphate.” He solicited and obtained information on explosives from other ISIS supporters, received training from a bomb-maker, experimented with manufacturing explosives, and operated drones. He also downloaded a video that provided step-by-step instructions on the manufacture of an improvised explosive device (IED) using triacetone triperoxide (TATP), known as “The Mother of Satan.” In October 2017, the FBI searched Naser’s home and vehicle. In Naser’s basement, the FBI found a bomb-making lab and multiple drones, tools, and drone parts. In the lab, they recovered a ready-to-assemble destructive device which included precursor chemicals and components needed to make a TATP-based IED.

The FBI’s Joint Terrorism Task Force investigated the case.  

U.S. Attorney Jerome F. Gorgon Jr., First Assistant U.S. Attorney Saima Mohsin, Assistant U.S Attorney Hank Moon for the Eastern District of Michigan, and the National Security Division’s Counterterrorism Section prosecuted the case.

DETROIT - Brandon Robinson, 42, of Detroit, pleaded guilty today to wire fraud and aggravated identity theft in connection with a decade-long, multi-million-dollar Federal Student Aid fraud scheme, announced United States Attorney Jerome Gorgon, Jr.

Gorgon was joined in the announcement by Special Agent in Charge John Woolley, U.S. Department of Education Office of Inspector General (DOE-OIG), and Anthony P. D’Esposito, Inspector General, U.S. Department of Labor Office of Inspector General.

According to the court records, Robinson was responsible for leading a years-long scheme to obtain fraudulent Federal Student Aid benefits involving so-called “straw students” who were enrolled for the primary purpose of receiving FSA.  Specifically, between January 2015 and February 2024, Robinson submitted fraudulent FSA claims for more than 1,200 individuals, involving over 100 schools in 24 states. As a result of the scheme, Robinson fraudulently caused more than $16M in FSA benefits to be awarded, with more than $10M disbursed. Robinson also accepted responsibility for filing over 100 fraudulent unemployment insurance claims between April 2020 and March 2023, causing the disbursement of over $1M in UI benefits.

Robinson pleaded guilty before United States District Judge Laurie J. Michelson. Sentencing is scheduled for September 1, 2026, where Robinson faces a maximum penalty of 20 years in prison on the wire fraud count, followed by a mandatory, consecutive penalty of 24 months for the aggravated identity theft count.

In a related case, co-conspirator Antonio Robinson and Joshuan Porter also pleaded guilty, for their roles in the same scheme. That case is also assigned to Judge Laurie J. Michelson and they will be sentenced on July 7, 2026 (Antonio Robinson), and August 4, 2026 (Joshuan Porter).  Both face a maximum penalty of 20 years in prison.

United States Attorney Gorgon stated, “More than 1,000 fake students. A decade of fraud. This man built an industrial-scale operation to loot federal student aid programs and to steal from the American taxpayer.”

"Scams like this steal money from hardworking taxpayers and legitimate students and that is unacceptable,” said John Woolley, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Central Regional Office. “The OIG and our law enforcement partners are committed to fighting student aid fraud and we will continue to aggressively pursue those that participate in these types of crimes."

“Brandon Robinson’s guilty plea sends a clear message: if you steal from programs meant to help hardworking Americans, our team and Vice President Vance’s Task Force to Eliminate Fraud — will find you, investigate you, and hold you accountable,” said Anthony P. D’Esposito, Inspector General, U.S. Department of Labor Office of Inspector General. “Protecting the integrity of the unemployment insurance system remains one of my top priorities. Fraud is a tax on every honest American, and we will continue aggressively pursuing the bad actors who exploit taxpayer-funded programs for personal gain.”

The Department of Justice has created the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars.  Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

The case was jointly investigated by agents from the Department of Education Office of the Inspector General and the Department of Labor Office of the Inspector General, with assistance from the Federal Bureau of Investigation.  It is being prosecuted by Assistant United States Attorneys Ryan A. Particka and John K. Neal.

DETROIT — The Department of Justice today announced the results of Operation Iron Pursuit, a one-month, nationwide enforcement effort to find child victims of sex abuse and arrest child sex predators. More than 200 child victims were located and over 350 child sexual abuse offenders were arrested. All 56 FBI field offices and U.S. Attorneys' offices around the country participated in the coordinated takedown effort. Eight individuals were arrested in the Eastern District of Michigan.

The operation commenced April 1 and ended April 30. The Administration for Children and Families recognizes April as National Child Abuse Prevention Month.

“This operation puts every child predator on notice: we are coming for you,” said Acting Attorney General Todd Blanche. “The sexual exploitation of minors is an abomination with no place in our society. We will hunt down these offenders, hold them fully accountable under the law, and deliver justice for victims.”

“Every single day this FBI is working 24/7 to break networks of child abusers all across this country,” said FBI Director Kash Patel. “Last year we joined our partners delivering a record year, identifying and rescuing over 6,300 missing children, and today’s announcement of Operation Iron Pursuit is just the latest success in that work — with over 200 victims located and over 350 offenders arrested. Let this be a message to criminal actors who seek to target America’s children: you will be pursued, and you will be brought to justice.”

“Creeps work in the shadows to hurt our children. But we work harder with our partners to find those creeps, bring them to light, and prosecute them. We do it to protect American children,” said United States Attorney Jerome F. Gorgon Jr.

“Our participation in Operation Iron Pursuit is another example of the work we do every day in Michigan to protect children and hold predators accountable,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “I am grateful for the dedicated efforts of our FBI Bay City, Flint, and Grand Rapids Resident Agencies, alongside the FBI Detroit Violent Crimes Against Children Task Force, whose work continues to safeguard our communities and protect children from those who seek to harm them.”

Victims recovered include a 10-year-old from Utah who was flown from Cuba to home and the child’s biological mother. The child was supposed to be on a camping trip with a transgender parent, partner, and another child. The group instead flew from Canada to Mexico and then to Cuba; concerns existed that the 10-year-old child was taken to Cuba for gender reassignment surgery. FBI Victim Services Division (VSD) assisted with the recovery of the children, providing crisis support and stabilization.

Those arrested are alleged to have committed various crimes, including sexual exploitation, sex trafficking, abuse, kidnapping, and possessing, distributing, or receiving child sexual abuse materials (CSAM). Some of the alleged offenders include:

•           A Columbus, Ohio, man who pleaded guilty to creating AI-generated obscene material of adults and children and to cyberstalking exes;

•           A District of Columbia man charged with producing child pornography;

•           A New York man charged with sexually exploiting a child; and

•           A Pennsylvania man and former felon charged with sexually exploiting a child and illegally possessing a gun.

•           A Michigan man was indicted on charges of transporting a minor for criminal sexual activity and coercion and enticement

This effort follows three other successful operations last year. Operation Relentless Justice, concluded in December 2025, resulted in the rescue of 205 children and arrests of 293 offenders. Operation Enduring Justice, concluded in August 2025, resulted in the rescue of 133 children and the arrests of 234 offenders. And Operation Restore Justice, concluded in May 2025, resulted in the rescue of 115 children and the arrests of 205 child sex abuse offenders.

The FBI’s VSD assisted victims during Operation Iron Pursuit and provided services such as forensic interviews, referrals for medical and mental health resources, and coordination with partners. VSD's mission is to inform, support, and assist victims in navigating the aftermath of crime and the criminal justice process with dignity and resilience.

The Department partners with and oversees funding grants for the National Center for Missing and Exploited Children (NCMEC), which receives and shares tips about possible child sexual exploitation received through its 24/7 hotline at 1-800-THE-LOST and on missingkids.org.

The Department urges the public to remain vigilant and report suspected exploitation of a child through the FBI's tipline at 1-800-CALL-FBI (225-5324), tips.fbi.gov, or by calling your local FBI field office.

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 North Carolina woman who engaged in a multi-state check fraud scheme pled guilty today, announced United States Attorney Jerome F. Gorgon, Jr.

Gorgon was joined in the announcement by Inspector in Charge Felicia George of the Postal Inspection Service’s Detroit Division, and Jared Murphey, acting Special Agent in Charge of Homeland Security Investigations Detroit.

Shannon Kurrie, age 61, originally from North Carolina, was convicted of conspiracy to commit bank fraud for a scheme where she was responsible for over $250,000 in losses.

At the hearing, Kurrie admitted to using stolen personally identifiable information provided to her by the leaders of the conspiracy, opening bank accounts in the names of victims, and fraudulently depositing their personal and United States Department of Treasury checks on behalf of the conspiracy. Kurrie impersonated numerous individuals by presenting fictitious identification to banks around the country, including in Grosse Pointe and Dearborn, Michigan, as well as Fort Wayne, Indiana. In each instance, Kurrie presented false documents and opened accounts before depositing large checks.

Sentencing before United States District Judge Mark A. Goldsmith will occur after a presentence report is prepared. Kurrie faces a possible maximum sentence of not more than 30 years’ imprisonment without the possibility of parole, a fine of not more than $1,000,00, and up to five years of supervised release following any term of imprisonment.

The case was investigated by the Department of Homeland Security, TSA Investigations and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Jason Dorval Norwood, K. Craig Welkener, and Jasmine Moore.