Western District of Michigan

          LANSING, MICHIGAN — U.S. Attorney Mark Totten today announced that Chief U.S. District Judge Hala Y. Jarbou sentenced Bryan Kennert, 57, of Norton Shores, to 30 months in prison after selling $43,354.94 of antique baseball card packs that he represented as original and unopened. The packs were opened, had the valuable cards removed, and were resealed to look like new, unopened packs. Kennert has engaged in schemes to sell fake sports cards and packs for at least 30 years. Federal agents also found fake sports cards at his home that would have been worth $7.3 million if authentic.

          “Kennert exploited unsuspecting victims for 30 years,” said U.S. Attorney Mark Totten. “Consumers should have confidence that the products they buy are the real thing. My office will continue its hard work to root out consumer fraud.”

          Between April and October 2019, a couple purchased $43,354.94 of baseball card packs from Kennert that they later learned were tampered with. The couple met Kennert after visiting an antique store in Muskegon, Michigan, where they saw packs of baseball cards that were listed for sale as original and unopened. The couple researched the packs, determined the price was a bargain, and met with Kennert eight times from April to October 2019 to purchase packs. When the couple went to have the packs authenticated and checked for condition, they were told the packs were resealed and nearly worthless.

          After learning of the fraud, federal agents executed a search warrant at Kennert’s home. There, they found fake cards that would have been worth $7.3 million, alongside supplies to make fake card packs. Agents interviewed Kennert, who admitted making around $100,000 a year selling fake cards and packs.

          “I commend the hard work of our HSI Grand Rapids special agents in pursuing this case and bringing this fraudster to justice,” said HSI Detroit Special Agent in Charge Angie Salazar. “We will continue to dismantle these schemes, wherever we find them, to protect hard-working Americans. We encourage all members of our community to remain vigilant and scrutinize deals that seem too good to be true.”

          This case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorney Davin M. Reust.

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          GRAND RAPIDS, Mich. – The U.S. Attorney’s Office for the Western District of Michigan and the U.S. Drug Enforcement Administration (DEA) Detroit Division today announced the results of an

enforcement operation that resulted in significant fentanyl seizures across the Midwest. Dr. Colleen Lane, Spectrum Health board-certified physician specializing in internal medicine and addiction medicine participated in the announcement as well.

          As part of the nationwide One Pill Can Kill initiative in Michigan and Ohio, the DEA and its law enforcement partners seized more than 65 kilograms of fentanyl powder and 88,000 fentanyl laced pills during the period of May 23 through Sept. 8, 2022 – enough to provide 4.7 million deadly dosages.

          “My office is committed to prosecuting the traffickers who are distributing this poison and the dealers who peddle it,” said Mark Totten, U.S. Attorney for the Western District of Michigan. “But let me also be clear: this is not a problem that we can prosecute our way out of.  All stakeholders – law enforcement, first responders, the healthcare and rehabilitation community, and those in harm reduction must continue working together to address this problem.”

          “Fentanyl in pill form is a deliberate attempt by drug cartels to make illicit drug use more appealing to Americans,” said DEA Detroit Special Agent in Charge Orville O. Greene. “Fake pills are especially concerning because the appeal they can have to an unsuspecting person. One may believe they are taking a legitimate pharmacy-grade pill pilfered from perhaps someone’s medicine cabinet or stolen from a pharmacy. Far too often that isn’t the case; many of the pills people buy on the street were haphazardly made in a clandestine lab – containing lethal dosages of fentanyl.”

          Nationwide, more than 10.2 million fentanyl pills and approximately 980 pounds of fentanyl powder were seized during the same time span. The amount of fentanyl taken off the streets during this surge is equivalent to more than 36 million lethal doses. Additionally, 338 weapons were seized, including rifles, shotguns, pistols, and hand grenades

          “The opioid epidemic is something that touches us all – we all have friends, family, or coworkers who have been directly affected by an opioid poisoning or death,” said Dr. Colleen Lane with Spectrum Health’s Center for Integrative Medicine. “Our Spectrum addiction medicine clinic is committed to educating our medical colleagues to better support patients and their families, providing resources to improve quality of care for vulnerable individuals, and reducing stigma around substance use disorder.”

          Fentanyl remains the deadliest drug threat facing this nation. In 2021, a record number of Americans – 107,622 – died from a drug poisoning. Sixty-six percent of those deaths can be attributed to synthetic opioids such as fentanyl.  

          Drug traffickers have expanded their inventory to sell fentanyl in a variety of bright colors, shapes, and sizes. Rainbow fentanyl was first reported to DEA in February 2022, and it has now been seized in 21 states.  

          Fentanyl is a synthetic opioid that is 50 times more potent than heroin. Just two milligrams of fentanyl, or the amount that could fit on the tip of a pencil, is considered a potentially lethal dose.

          As part of DEA’s ongoing efforts to educate the public and encourage parents and caregivers to talk to teens and young adults about the dangers of fake pills and illicit drugs, DEA has also created a new resource, “What Every Parent and Caregiver Needs to Know About Fake Pills.”

          In September 2021, DEA launched the One Pill Can Kill enforcement effort and public awareness campaign to combat the fake pill threat and educate the public about the dangers of fentanyl pills being disguised and sold as prescription medications, despite these pills not containing any of the actual medications advertised. The only safe medications are ones prescribed by a trusted medical professional and dispensed by a licensed pharmacist. All other pills are unsafe and potentially deadly. 

          Additional resources for parents and the community can be found on DEA’s Fentanyl Awareness page.

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          GRAND RAPIDS, MICHIGAN —U.S. Attorney Mark Totten announced that today U.S. District Judge Jane M. Beckering sentenced Zachary Grosser, age 29, of Kalamazoo County, Michigan, to 12 years in federal prison for years spent illegally manufacturing and distributing firearms in West Michigan, including selling guns to people who were legally forbidden to possess them. In holding Grosser accountable for over 40 firearms, Judge Beckering emphasized the serious and brazen nature of his conduct, which she described as “extremely dangerous to the community.”

          Grosser made and sold “ghost guns,” designed to be untraceable, and advertised that fact to potential buyers, as illustrated below.

          “Today’s sentence sends a clear message to would-be arms dealers and criminal firearm users,” said U.S. Attorney Mark Totten. “Operating an unlicensed firearms dealership is against the law, period. Zachary Grosser made a business out of building and selling firearms to people forbidden to have them, with a promise that they would be untraceable. He was sorely mistaken. My office will continue to investigate and hold accountable all who would flood our communities with ghost guns or unlawfully possess them.”

          In early 2021, law enforcement learned that Grosser was operating an illegal arms-dealing and manufacturing business from his Kalamazoo County residence. Through surveillance and searches of his trash, police found evidence that Grosser was making 3D-printed “ghost guns,” including handwritten instructions and partially-completed firearms. When state and federal investigators searched Grosser’s home in August 2021, they discovered a subterranean workshop filled with gunsmithing machines, tools, and parts, including multiple 3D-printers. They also found numerous completed firearms, including an illegal unregistered short-barreled rifle that was mounted to his wall, shown below. And they learned that, in connection with his illegal firearms business, Grosser had been using and dealing drugs.

          This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kalamazoo Valley Enforcement Team. It was prosecuted by Assistant U.S. Attorney Patrick J. Castle.

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          GRAND RAPIDS, MICHIGAN – U.S. Attorney Mark Totten announced today that the Department of Justice has awarded $192,976 to support the Project Safe Neighborhoods Program in the Western District of Michigan. Funding will support community efforts to address the epidemic of gun crime and serious violence in the district. The grant is one of a number of awards being made to state and local agencies across the country. Funds are administered by the Bureau of Justice Assistance, part of the Department’s Office of Justice Programs.

          “Police and prosecutors cannot solve violent crime alone,” said U.S. Mark Totten. “Addressing violence requires a holistic approach that facilitates cooperation between law enforcement and community stakeholders, and a forward-thinking strategy for addressing the underlying causes of violence before it occurs. These funds will support projects specifically designed to keep West Michigan residents safe.”

          “Reducing violence and sustaining those reductions will require strong partnerships between criminal justice agencies and community stakeholders and a shared commitment to the safety and well-being of every community member,” said OJP Deputy Assistant Attorney General Maureen Henneberg. “The investments we are making through Project Safe Neighborhoods will enable every stakeholder to play a part in building safer and healthier communities.”

          Launched two decades ago as an evidence-based and community-oriented response to serious gun crime, Project Safe Neighborhoods, known as PSN, is a key component of the Department’s Comprehensive Strategy for Reducing Violent Crime, outlined by Deputy Attorney General Monaco in May 2021. The PSN approach is guided by four key principles: fostering trust and legitimacy in our communities; supporting community-based organizations that help prevent violence from occurring in the first place; setting focused and strategic enforcement priorities; and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.

          PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention, and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.

          “Over its two-decade history, Project Safe Neighborhoods has evolved to meet the complex challenges of community violence by enlisting the insights and expertise of local partners and by relying on the latest evidence,” said BJA Director Karhlton F. Moore. “We are proud to support our U.S. Attorneys and their allies in their critical work to curb violent crime and build the mutual trust necessary to ensure lasting success.”

          The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page.

          The Office of Justice Programs provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.

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          GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced today that Joshua Brereton of Paw Paw, Michigan pled guilty to one count of arson, admitting to United States Magistrate Judge Ray Kent that he maliciously set fire to the Planned Parenthood clinic in Kalamazoo, Michigan.

          “This fire was a senseless act of political violence,” said U.S. Attorney Mark Totten. He continued: “In our democracy, resorting to violence is never an acceptable means to address policy disputes. Moreover, Brereton’s actions could have injured innocent citizens and first responders. Today’s guilty plea is an important step to ensure the safety of our community.” 

          “Arson is a heinous act of violence, and has a severe impact on the community,” said ATF Assistant Special Agent in Charge Craig Kailimai, “Combined resources and expertise through our state and local partnerships allowed for a quick resolve of this violent act.”

          As part of his guilty plea, Brereton admitted that, on July 31, 2022, he went to Walmart in Paw Paw, where he purchased Citronella tiki torch fuel, a Duraflame fire starter log, a utility lighter, and a black baseball hat. Then, dressed in a camouflage jacket, the black hat, and hiking shoes, Brereton admitted breaching Planned Parenthood’s security fence and setting fires near the front entrance of the building as well as at the southwest corner of the building. Finally, he admitted igniting the Duraflame starter log and throwing it onto the roof of the building to start a third fire before he fled the scene.

          Brereton’s plea agreement provided the court with insight into the crime’s motivation. In the agreement, Brereton admitted posting a video – entitled “The Line Between Good and Evil” – to his YouTube channel. In it, he referred to abortion as genocide. Brereton admitted posting similar anti-abortion articles and items on his Facebook page.

          Sentencing is scheduled for February 6, 2023 at 1:30 p.m. before United States District Judge Paul L. Maloney. At sentencing, Brereton faces a mandatory minimum penalty of five years in prison, with a maximum possible sentence of up to 20 years in prison, followed by three years of supervised release. He also faces a fine of up to $250,000 and will be ordered to pay restitution to the victim of his crime. The plea agreement estimates the amount of restitution Brereton will be ordered to pay to be in excess of $20,000 in addition to all other penalties.

          Brereton’s guilty plea followed a joint investigation by multiple law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation (FBI), and the Kalamazoo Department of Public Safety (KDPS). The case is being prosecuted by Assistant United States Attorney Stephanie Carowan.

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Scott Chappelle Concealed Income and Assets to Avoid Paying More than $1.6 Million in Taxes, While Maintaining a Lavish Lifestyle

          GRAND RAPIDS, MICHIGAN — Scott Chapelle, 61, of Okemos and East Lansing, was sentenced to 38 months in prison today after engaging in a sophisticated, nearly decade-long effort to prevent the Internal Revenue Service (IRS) from collecting unpaid taxes from him and his businesses – including employment taxes withheld from the wages of his employees – all while funding a lavish lifestyle that included multiple houses, a yacht, and plastic surgery.

          “Rather than working hard and playing by the rules, Scott Chappelle broke the law,” said U.S. Attorney Mark Totten. He continued: “Chapelle spent cash that wasn’t his – funds withheld from his workers as employment taxes, which he then hid from the IRS – to support an extravagant lifestyle he didn’t earn. Now and always, my office will hold individuals and businesses accountable who refuse to follow the rules.”   

          “Scott Chappelle spent nearly ten years evading taxes he owed to the IRS,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “At the same time he was falsely claiming financial hardship, Chappelle was spending money on multiple homes, payments toward a luxury yacht, and elective plastic surgery. His prison sentence imposed today reaffirms a fundamental principle – those who lie to IRS collection agents and criminal investigators will be held accountable.”

          According to court documents, Chappelle was an attorney and former CPA who operated Terra Management Company, Strathmore Development Company Michigan LLC, and Terra Holdings LLC, all of which were involved in real estate development and property management in the East Lansing area. Chappelle admitted as part of his guilty plea that he failed to pay over to the IRS employment taxes that were withheld from the wages of the companies’ employees. After the IRS began trying to collect the unpaid taxes, Chappelle attempted to evade the payment of those taxes by making false statements to the IRS about his and his companies’ assets and income, concealing his vacation house on Lake Michigan, and purchasing real property in the names of companies instead of his own name to hide them from the IRS.

          Court documents also reveal that Chappelle falsely told IRS employees that he and his companies could not afford to pay their tax debts because of financial hardships, all the while paying substantial personal expenses from bank accounts in the names of at least six different businesses he controlled, including mortgage payments on three houses and a condominium, payments toward the purchase of a yacht, college tuition for his children, plastic surgery, personal credit card bills, life insurance premiums, car payments for himself and one of his children, and expenses associated with boats he owned.

          Chappelle also admitted as part of his guilty plea that he made false statements to special agents of IRS Criminal Investigation who were investigating his misconduct. Chappelle failed to tell the agents about real property that he purchased – including a house in Ohio he had purchased just one month earlier – and he concealed the source of the funds used to pay a mortgage on a condominium in East Lansing. Also during the criminal investigation, Chappelle filed a false employment tax return for one of his companies on which he claimed that the company had no employees and paid no wages during the time period covered by the return. In fact, Chappelle knew the company had employees and paid wages during that period because he approved submissions to the company’s payroll provider.

          Chappelle further admitted to making false statements on a loan application when he refinanced the mortgage on his Lake Michigan vacation house in Harbor Springs. According to court filings, Chappelle submitted fabricated bank statements to the mortgage company to make it appear as if his company had substantially more money in its account than it actually had, and then falsely blamed another employee of his company for fabricating them.

          In addition to the term of imprisonment, U.S. District Judge Jane M. Beckering ordered Chappelle to serve three years of supervised release and pay a fine of $150,000 and $1,233,836 in restitution to the United States.

          This case was investigated by IRS-Criminal Investigations.  Prosecution was handled by Assistant U.S. Attorney Timothy P. VerHey and Trial Attorney Melissa S. Siskind of the Justice Department’s Tax Division.

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Kaleb Franks testified in both federal trials

          GRAND RAPIDS, MICHIGAN — The U.S. Attorney’s Office for the Western District of Michigan announced today that Kaleb Franks, one of four conspirators convicted of plotting to kidnap the Governor of Michigan, was sentenced to 48 months (4 years) in federal prison, to be followed by three years of court supervision. In addition, he is required to pay a fine of $2,500.

          Franks pled guilty early this year and agreed to cooperate with the government. Though he faced up to life in prison, the Hon. Robert J. Jonker, District Judge, determined the ultimate sentence after evaluating Franks’ assistance to the government and the applicable federal Sentencing Guidelines, and considering the statutory sentencing factors, including the nature and circumstances of the offense; the history and characteristics of the defendant; the seriousness of the offense; and the need to promote respect for the law, to provide just punishment, and protect the public from future crimes of the defendant.

          Franks testified at both federal trials, which cumulatively resulted in the convictions of co-defendants Adam Fox and Barry Croft and the acquittals of Daniel Harris and Brandon Caserta. Ty Garbin was the first to plead guilty and cooperate. Garbin initially received a sentence of 75 months (6¼ years) in prison, which the district court later reduced to a term of 30 months (2½ years) in prison after fully considering his cooperation at both trials. Fox and Croft await sentencing in December.

          The FBI’s Detroit Field Office investigated the case with valuable assistance provided by the FBI’s Baltimore Field Office and the Joint Terrorism Task Force, including Michigan State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The U.S. Attorney’s Office for the Western District of Michigan charged the case and conducted the trials, with valuable assistance provided by the National Security Division’s Counterterrorism Section.

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          GRAND RAPIDS – Gaylord D. Lincoln and G. Lincoln Farms, LLC, located in Springport, Michigan, have agreed to pay $1,200,000 to resolve allegations that they violated the False Claims Act by causing the submission of fraudulent claims for federal crop insurance and federal farm benefit payments.  The settlement amount was negotiated based on the defendants’ ability to pay.

          U.S. Attorney Mark Totten stated, “Michigan farmers depend on federal programs to provide economic security, and these agricultural programs are essential to the national wellbeing.  But, in turn, USDA relies on farmers to tell the truth and play by the rules. My office is committed to working with our law enforcement partners to root out fraud on these programs.”

          This settlement resolves civil claims the United States brought against the defendants in a December 2021 lawsuit.  In its complaint, the United States alleged that the defendants defrauded the U.S. Department of Agriculture’s (“USDA”) Farm Service Agency (“FSA”) by operating a scheme to avoid benefit program payment limitations. Specifically, the United States alleged that the defendants placed their farmland and crops in the names of their employees, who served as a facade for defendants but had no financial risk or interest in the crops and had them enroll in FSA benefit programs.  These individuals then provided the FSA benefit payments to the defendants.  The United States further alleged that defendants caused these individuals to take out fraudulent federal crop insurance policies for these crops, even though they had no insurable interest in these crops, and that the proceeds of the policies went to the defendants.

          Shantel R. Robinson, Special Agent-In-Charge, United States Department of Agriculture-Office of Inspector General (“USDA-OIG”), said, “The United States Department of Agriculture is committed to combatting crop insurance fraud through civil enforcement under the False Claims Act.  Fraudulent activity within the crop insurance program undermines its intent and misdirects taxpayer dollars from where they were intended.  The United States Department of Agriculture, Office of Inspector General will continue its mission to investigate allegations of waste, fraud, and abuse in USDA programs.”

          This settlement follows a related March 2022 civil settlement with the insurance agent and insurance agency that worked with the defendants.

          The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan, USDA-OIG, and USDA’s Risk Management Agency.  Assistant U.S. Attorney Andrew J. Hull represented the United States.

          The complaint and other filings in this case can be found on the Court’s online docket under United States v. Lincoln, No. 1:21-cv-1089 (W.D. Mich.).

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

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          GRAND RAPIDS, MICHIGAN — David Tillman Deloach, 39, from Kalamazoo, Michigan was sentenced to serve 58 months in the Federal Bureau of Prisons for using a stolen identity to illegally purchase 28 handguns. Chief U.S. District Judge Hala Y. Jarbou also imposed 3 years of supervised release following his release from custody.

          U.S. Attorney Mark Totten stated, “Mr. Deloach’s crimes are serious. By using another person’s identity over the course of approximately five months to purchase a cache of handguns, Mr. Deloach is fueling the epidemic of violence plaguing our communities. Mr. Deloach is arming convicted felons, like himself, who are legally prohibited from possessing firearms. My office, working with the ATF, will continue to target individuals who are straw purchasing firearms.”

          A Special Agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Chicago Field Division began investigating Mr. Deloach after he was stopped by Indiana State Police for traffic violations and during a search of his car, troopers found two handguns.  As a convicted felon, Mr. Deloach was prohibited from possessing any firearms.  Three months later, Mr. Deloach was a passenger in a car stopped by Chicago Police, in which officers found five handguns.  The ATF Special Agent discovered that between March and July 2021, Mr. Deloach, a convicted felon, used a stolen identity to purchase 28 handguns from three licensed gun stores in Western Michigan. Only three of these pistols have been seized by police; the location of vast majority of the handguns purchased by Mr. Deloach remains unknown. 

          On September 20, 2022, Mr. Deloach pleaded guilty to aggravated identity theft, being a felon in possession of firearms, and making false statements during the purchase of firearms. In sentencing Mr. Deloach to serve almost 5 years in federal prison, Judge Jarbou expressed her desire to protect the community and send a strong message of deterrence to others.

          “Straw purchasers play a pivotal role in enabling the unlawful possession of guns and the violence that can follow,” said ATF Special Agent in Charge of the Chicago Field Division Kristen de Tineo. “ATF, in collaboration with our local, state and federal partners, is committed to working together to stop the flow of guns to individuals who cannot legally purchase them.”

          This case was investigated by the ATF as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, local, and tribal law enforcement work closely together to identify and prosecute individuals responsible for driving violent crime in our communities to make neighborhoods safer for everyone. Individuals with information or concerns about violent crime or firearms offenses should contact local law enforcement. For more information about Project Safe Neighborhoods, visit: https://www.justice.gov/psn.

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December 2021 Robbery of Independent Bank in Grand Rapids

          GRAND RAPIDS, MICHIGAN – Kristin Cole Greinke, 41, of Grand Rapids, pleaded guilty to robbing Independent Bank located at 3090 Plainfield Avenue, N.E. in Grand Rapids, Michigan, U.S. Attorney Mark Totten announced today.

          “Bank robbery doesn’t pay,” said U.S. Attorney Mark Totten. He continued, “Greinke faces up to 20 years in prison for his offense. We will continue to hold accountable anyone who commits this or similar crimes.”

          On December 16, 2021, Greinke took a taxicab to Independent Bank.  He went into the bank and presented a demand note that stated, “This is a robbery money in the bag no bait bills or dye packs or I’ll come back and kill you all 100 on the side.”  The teller gave Greinke $6,230 and Greinke left the bank and witnesses saw him get in the taxi.  The police contacted the taxicab company and reached the driver through dispatch.  The driver made an excuse to stop and Greinke got out but was quickly arrested by responding officers.  All of the money was recovered.  

          Greinke pleaded guilty to the bank robbery charge. He is scheduled to be sentenced by the Honorable Hala Y. Jarbou, U.S. District Judge, on Tuesday, January 31, 2023 and faces a maximum penalty of 20 years in prison. The judge will determine his sentence after considering the U.S. Sentencing Guidelines and other statutory factors, including that Greinke was previously convicted of bank robbery in federal court in 2003.  

          The Grand Rapids Police Department, Kent County Sheriff’s Department, and FBI investigated the case.  Assistant U.S. Attorney Daniel Mekaru is prosecuting the case.

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          GRAND RAPIDS, MICHIGAN — Joseph Scott Gray, 53, of Lawton, Michigan was sentenced to five years in federal prison for lying to the Department of Veterans Affairs to obtain over $250,000 in benefits to which he was not entitled. To obtain those benefits, Gray repeatedly told the VA he could not walk or stand, when in fact, he could.

          On October 26, 2017, Gray went to the Battle Creek VA Medical Center for an exam, and he arrived in a wheelchair:

          During the exam, Gray told VA employees he had not walked in 10 years and could not use his left hand. Minutes later, Gray went to a local restaurant, where he was observed freely walking in and out of the building and carrying his leftovers in his left hand:

          Gray was convicted by a federal jury of four counts: engaging in a conspiracy to defraud the government; providing false statements to the VA; theft of government funds; and presenting a false, fictitious, or fraudulent claim for benefits. After trial, the Court found that Gray committed perjury by falsely testifying that his medication caused him lie to VA employees and that his medication caused him to go from being unable to walk one minute to able to walk the next. The Court also found that Gray falsely testified that it was his brother, not him, in videos from a local feed store in which Gray was seen walking freely and carrying a 40 - 50 lb. bag of cat food.

          In sentencing Gray to five years in prison, U.S. District Court Judge Robert J. Jonker explained that a significant sentence of incarceration was necessary because Gray’s fraud spanned 15 years and involved blatant lies to both the VA and the jury. Judge Jonker also noted Gray obstructed justice in this case by committing perjury, and he obstructed justice in a previous federal case by threatening a witness.  In 2011, Gray was sentenced to 27 months in prison after a jury convicted him of engaging in the unlicensed sale of firearms.

          U.S. Attorney Mark Totten stated, “Our nation has an obligation to care for our veterans and we must ensure they receive the medical care and disability benefits they need and deserve. Those who lie and fraudulently obtain VA benefits they are not entitled to receive not only steal from American taxpayers but from the veterans who served in defense of our country. My office will fight to protect VA benefits for those in genuine need of treatment and support.”

          “Misrepresenting symptoms to the VA to fraudulently obtain benefits takes resources from deserving veterans and will not be tolerated,” said Special Agent in Charge Gregory Billingsley with the Department of Veterans Affairs Office of Inspector General’s Central Field Office.  “The VA OIG will continue to vigorously investigate those who would steal from VA benefits programs and taxpayers.”

          Assistant U.S. Attorneys Davin Reust and Lauren Biksacky prosecuted the case.

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          GRAND RAPIDS, MICHIGAN — Robert Duane Wicke, 60, from Lansing, Michigan was sentenced to life in prison for attempting to coerce and entice children to engage in sex acts.  He was also sentenced to 20 years’ custody on each of three counts of distributing child pornography videos and 20 years’ custody for possessing a collection of child pornography.  The sentences for the child pornography offenses will be served concurrently with the life sentence. 

          U.S. District Judge Jane M. Beckering also ordered 10 years of supervised release should he be released early from custody. In sentencing Wicke to serve life in prison, Judge Beckering expressed her dismay at Wicke’s long history of sexually abusing children and the extraordinary risk he posed to children.  Judge Beckering described his “very very serious conduct” among some of the worst she had seen in her 14 years as a judge.   

          A special agent with the FBI was working undercover in a messaging application that is commonly used by individuals interested in sexually abusing children. The agent posed as a mother in California with 7-year-old and 9-year-old daughters.  Wicke sought out children to sexually abuse and wanted the mother to bring the girls to him so he could sexually assault them and train them to be sex slaves.  His chats with the mother were depraved and graphic.  He sent the mother videos of other children being abused and raped and wanted the videos to be shared with the 7-year-old and 9-year-old girls as part of a grooming effort to desensitize the children to sex. 

          On March 21, 2022, Wicke traveled from his home in Lansing to a hotel in Grand Rapids as part of his plan to fly the mother and children from California to Michigan.  Instead of meeting the mother and the victims, Wicke was greeted by federal agents.  A subsequent search of his digital devices disclosed his collection of child pornography. 

          U.S. Attorney Mark Totten stated, “Mr. Wicke’s depraved actions are beyond words. I am grateful for the FBI’s work to protect children. Today and every day we will hold child predators accountable.” 

          “Protecting children from dangerous child predators is a top priority for the FBI in Michigan and across the country,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “Mr. Wicke is an example of how manipulative these criminals can be.  I commend the work of the special agents, deputies, police officers, and prosecutors who worked to make our children safer by ensuring he remains behind bars for the rest of his life.”

          This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.  Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.

          This case was prosecuted by Assistant U.S. Attorney Daniel Mekaru, in cooperation with the FBI in San Francisco, Lansing, and Grand Rapids, and WEBCHEX – “West Michigan Based Child Exploitation and Human Trafficking Task Force,” a partnership of FBI, Michigan State Police, and local agencies dedicated to investigating offenses against children. 

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          GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced that on September 12, 2022, the Honorable Paul L. Maloney, United States District Judge for the Western District of Michigan sentenced Adrian Romero Antunez (35), a Mexican national in the United States on a tourist visa, to 46 months in prison for his role in a conspiracy to distribute five (5) kilograms or more of cocaine.  Romero Antunez was the final defendant to be sentenced in a transnational and interstate cocaine ring that centered around New Buffalo, Michigan resident Ivan Huerta Hernandez (33).  Through conduits in Mexico, Huerta Hernandez was supplied by sources located in Chicago, Illinois, including Romero Antunez.  Huerta Hernandez then distributed cocaine to dealers in West Michigan and Northern Indiana. 

          On the morning of November 3, 2021, approximately 90 federal, state, and local law enforcement officers executed arrest warrants and six search warrants in four judicial districts: the Western District of Michigan, the Northern District of Indiana, the Northern District of Illinois, and the Central District of Illinois.  Investigators seized over 1.5 kilograms of cocaine.  Investigators also seized approximately $100,000 in cash, six vehicles, and two firearms.

          The men who have been convicted of felony charges are listed below: 

Name

Residence

Age

Sentence

Ivan Huerta Hernandez

New Buffalo, Michigan

33

87 months

Adrian Romero Antunez

Chicago, Illinois

35

46 months

Henry Shavar Nichols

Greenville, South Carolina

41

36 months

Marcus Jemel Johnson

Benton Harbor, Michigan

41

46 months

Juan Martinez Camarillo

Michigan City, Indiana

37

57 months

Donald James Rogers

New Buffalo, Michigan

62

12 months and 1 day

Manuel Eudave

La Porte, Indiana

54

Fine

Santiago Cardenas

Michigan City, Indiana

41

Probation and Fine

          For more information, please see the continuation in support of the criminal complaint available on the public docket.  United States v. Hernandez, et al., No. 21-MJ-551, ECF No. 1 (W.D. Mich.).   

          In announcing the sentences, U.S. Attorney Mark Totten said, “The convictions and sentences in this case represent a significant victory against a transnational drug trafficking conspiracy.”  He continued: “My office is committed to combatting large-scale traffickers who bring these poisons to the Western District of Michigan.  This prosecution demonstrates the power of pooling the resources of federal, state, and local governments.  Drug trafficking organizations do not recognize political boundaries and we must continue to work together to combat drug trafficking organizations across Michigan, the Midwest, and the United States.”

          “An investigation like this can only be successful when law enforcement agencies at all levels work together to remove those who pollute local neighborhoods with dangerous drugs,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “This investigation effectively dismantled a transnational, interstate drug trafficking organization that set up operations in the New Buffalo area. The FBI will continue to work with our partners to rid the streets of these criminals and make our communities safer for all citizens.” 

          “This sentencing should serve as a reminder that along with our Federal, State and local law enforcement partners, DEA is dedicated to identifying, investigating and dismantling drug trafficking organizations who look to profit from the suffering of others,” said Orville Greene, Special Agent in Charge, Detroit Field Division of the Drug Enforcement Administration.

          “The Berrien County Sheriff’s Office is honored to partner with the FBI, DEA, and other law enforcement agencies to ensure that the residents of southwest Michigan and the entire United States are protected from individuals and organizations that are trying to harm our residents and citizens,” said Berrien County Sheriff, L. Paul Bailey.  “The Berrien County Sheriff’s Office is proud of the hard work and dedication of all law enforcement personnel who took part in this investigation and brought it to a successful conclusion.”

          The case was investigated and prosecuted as part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation that began in 2020 and has been led by the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), United States Marshals Service (USMS),  Immigration and Customs Enforcement (ICE), United States Postal Inspection Service (USPIS), Michigan State Police’s Southwest Enforcement Team (SWET), Berrien County Sheriff’s Department (BCSD), Pokagon Band Tribal Police, Michigan City Police Department, La Porte City Police Department, and the Cook County Sheriff Department.

          OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using an intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

          Assistant United States Attorneys Vito S. Solitro and Daniel T. McGraw prosecuted the case. 

          GRAND RAPIDS, MICHIGAN – Matthew Allen Main, 35, of Parchment, Michigan, was sentenced to 70 months in federal prison, United States Attorney Mark Totten announced today.  Main pleaded guilty to robbing the JPMorgan Chase Bank in Kalamazoo in October 2021 and threatening to pull a gun on the teller if she didn’t give him $50,000. Main also admitted to robbing Community Promise Federal Credit Union in Kalamazoo two days later by threatening to set off bombs around the building if two bank tellers didn’t give him $50,000. Main obtained approximately $9,945.33 from the two robberies.

          In imposing the sentence, U.S. District Judge Jane M. Beckering remarked on the violent nature of the threats to the tellers. In addition to the prison term, Judge Beckering ordered Main to pay $9,945.33 in restitution and a fine of $500, and to serve three years on supervised release following his prison term.

          “These two Kalamazoo bank robberies and threats of violence against the bank employees are unacceptable,” said U.S. Attorney Totten.  “Thanks to the investigative efforts of the FBI and the Kalamazoo Department of Public Safety, we were able to locate Mr. Main, vindicate the public interest, and deter these sorts of violent robberies in the future.”  

          “Bank robberies are crimes of violence that traumatize the victims, and the FBI is dedicated to seeking justice for those victims,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “This case is a warning to others that if you commit a bank robbery or any other violent crime in Michigan, you will face serious consequences for your unlawful actions. We are grateful for the close working relationship we have with the Kalamazoo Department of Public Safety and are thankful for their partnership during this investigation.”

          The case was investigated by the FBI – Kalamazoo Resident Agency and the Kalamazoo Department of Public Safety. Assistant U.S. Attorney Clay M. West handled the prosecution.

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          GRAND RAPIDS, MICHIGAN — Jeffrey David Paprocki, 33, from Muskegon, Michigan was sentenced to serve 300 months in the Federal Bureau of Prisons for producing pictures of his sexual assault of a 7-year-old child. 

          U.S. District Judge Janet T. Neff also imposed 10 years of supervised release following his release from custody. In sentencing Paprocki to serve 25 years in prison, Judge Neff expressed her desire to protect the community and send a strong message of deterrence to others.  Paprocki was also ordered to pay restitution to the victims.     

          A deputy with the Winnebago County, Wisconsin, Sheriff’s Office was working undercover in a messaging application that is commonly used by individuals interested in sexually abusing children. The deputy identified Paprocki as someone who possessed and distributed child pornography. In a separate investigation by the FBI in Connecticut, an undercover FBI agent engaged in a chat conversation with an individual who was boasting that he was sexually assaulting a 7-year-old child. During that conversation, the individual stated that he planned on assaulting the child later that night. The FBI initiated emergency procedures to identify the person and locate him. The FBI connected the new case with the lead identified by the deputy in Wisconsin and that same day secured a search warrant. Paprocki confessed to sexually assaulting the child and to producing pictures of the assault.  He was arrested that night and initially charged in a federal criminal complaint. 

          The U.S. Attorney’s Office filed federal charges against Paprocki for the production and possession of child pornography. The Muskegon County Prosecutor’s Office charged Paprocki for the sexual assault of the 7-year-old child. As part of a joint resolution, Paprocki pleaded guilty to production and possession of child pornography in federal court and agreed to plead guilty to the sexual assault charge in Muskegon County. 

          U.S. Attorney Mark Totten stated, “Mr. Paprocki’s conduct is horrific. This child depended on Mr. Paprocki and he abused that dependence for his own sexual pleasure. My office, working with our partners, will find and hold child exploiters accountable.”

          “Protecting children from dangerous child predators is a priority for the FBI. The crimes committed by these offenders cause incalculable damage to their young victims,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “Today’s sentence, in combination with the sentence he is facing in state court, holds Mr. Paprocki accountable for his conduct and ensures he cannot harm any more children. Cases like this one illustrate the commitment of the FBI and its law enforcement partners to identify, investigate, and hold predators like him accountable.”

          This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.  Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.

          This case was prosecuted by Assistant U.S. Attorney Daniel Mekaru, in cooperation with the Muskegon County Prosecutor’s Office, and investigated by Winnebago County, Wisconsin, Sheriff’s Office, FBI in Connecticut, and WEBCHEX – “West Michigan Based Child Exploitation and Human Trafficking Task Force,” a partnership of FBI, Michigan State Police, and local agencies dedicated to investigating offenses against children. 

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          GRAND RAPIDS – A federal jury today convicted two men charged in connection with a conspiracy to kidnap the Governor of Michigan, Gretchen Whitmer.

          Adam Fox, of Wyoming, Michigan, and Barry Croft Jr., of Bear, Delaware, were found guilty of conspiracy to kidnap the governor and conspiracy to use weapons of mass destruction against persons or property. Croft was additionally convicted of knowingly possessing an unregistered destructive device, specifically an improvised explosive wrapped in pennies for shrapnel.

          According to court documents and evidence presented at trial, Fox and Croft intended to kidnap Governor Whitmer from her vacation cottage near Elk Rapids, Michigan and use the destructive devices to facilitate their plot by harming and hindering the governor’s security detail and any responding law enforcement officers.

          “Today’s verdict confirms this plot was very real and very dangerous,” said former U.S. Attorney Andrew Birge for the Western District of Michigan, appointed to oversee the trial. “These men posed a threat not only to the Governor personally but also to bystanders. No elected leader should have to contend with what Governor Whitmer faced here. She deserves to live in safety, not in fear, just like everyone else in our State. All of our elected leaders deserve that, and the Justice Department will not tolerate violent extremist plots of this nature seeking to undermine our democracy”

          “These defendants believed their anti-government views justified violence,” said Special Agent in Charge James A. Tarasca of the FBI’s Detroit Field Office. “Today’s verdict sends a clear message that they were wrong in their assessment. Violence is never the answer. The FBI will continue to investigate anyone who seeks to engage in violence in furtherance of any ideological cause and hold them accountable.”

          Co-conspirator Ty Garbin was sentenced to six years in prison in August 2021 after pleading guilty to the original indictment charging him with conspiracy to kidnap Governor Whitmer. Co-defendant Kaleb James Franks also pleaded guilty to the conspiracy to kidnap charge in February 2022 and is awaiting sentencing. Co-defendants Daniel Joseph Harris and Brandon Michael-Ray Caserta were acquitted of charges at trial earlier this year.

          The kidnapping conspiracy and the conspiracy to use a weapon of mass destruction are punishable by up to life in prison. Possession of an unregistered destructive device and the possession of an unregistered short barrel rifle are each punishable by up to 10 years in prison. The presiding judge, Judge Robert Jonker, will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

          The FBI’s Detroit Field Office investigated the case with valuable assistance provided by the FBI’s Baltimore Field Office and the Joint Terrorism Task Force, including Michigan State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

          Assistant U.S. Attorneys Nils Kessler and Chris O’Connor conducted this retrial with valuable assistance provided by Trial Attorneys Justin Sher and Taryn Meeks of the National Security Division’s Counterterrorism Section.

+ + +

          GRAND RAPIDS, MICHIGAN —United States Attorney Mark Totten announced today that Jerreil Lamounta Martin has been arrested on charges involving alleged straw purchasing and illegal sale of firearms. 

          A “straw purchase” is an illegal firearm sale where the actual buyer of the gun, being unable to pass the required federal background check or desiring to not have his or her name associated with the transaction, uses another person who can pass the required background check to purchase the firearm.  The indictment alleges that between September and October 2021, Martin straw purchased at least 11 handguns from licensed firearms dealers and falsely certified on federal forms that he was the actual buyer of these guns.  In reality, the indictment alleges, Martin purchased those handguns on behalf of other individuals, then transferred them to his customers, collecting a fee for his illegal service.  Numerous guns that were allegedly illegally purchased and trafficked by Martin were later used in crimes.          

          “We face an epidemic of gun violence in Michigan, like other states across the nation,” said U.S. Attorney Mark Totten. He continued: “No person should fear for their lives merely by going for a walk in their neighborhood, but that fear is real for some families. The recent surge in gun violence is driven, in part, by individuals who illegally supply firearms to violent criminals. When you illegally buy a gun for someone else, you could buy yourself 10 years in federal prison. My office will continue to use federal laws to prosecute straw purchasers and hold them accountable for trafficking illegally purchased firearms.”

          “Straw purchasing is a serious crime. Straw purchasers put firearms in the hands of felons and trigger-pullers, and they directly enable the violence that follows,” said Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Resident Special Agent in Charge Andrew Holt. “Our agents are committed to working with our law enforcement partners and prosecutors to stop the flow of guns to individuals who cannot legally purchase them.”

          The United States Attorney’s Office and the ATF in the Western District of Michigan are focused on prosecuting those individuals who are putting guns in the hands of dangerous criminals.

          This case was investigated by the ATF as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, local, and tribal law enforcement work closely together to identify and prosecute individuals responsible for driving violent crime in our communities to make neighborhoods safer for everyone. Individuals with information or concerns about violent crime or firearms offenses should contact local law enforcement. For more information about Project Safe Neighborhoods, visit: https://www.justice.gov/psn

          An indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

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     GRAND RAPIDS, MICHIGAN – U.S. Attorney Mark Totten announced today that U.S. District Judge Robert J. Jonker sentenced Daniel Brown of Dimondale, Michigan to 12 months and one day in prison on a health care fraud conspiracy charge. Judge Jonker also sentenced Brown to three years of supervised release following his incarceration and ordered restitution totaling $1,267,418.00.

     Brown’s conviction stemmed from an agreement to have expensive and medically unnecessary compounded pain creams and patches prescribed to Michigan State University (“MSU”) employees that were filled by pharmacies in Mississippi.  Brown admitted soliciting a local physician to sign the prescriptions and splitting commission payments that the Mississippi pharmacies paid Brown for directing the prescription to their pharmacies.  The pharmacies then charged MSU’s health plan $2,000 - $3,000 for each prescription.

     As set forth in the government’s sentencing pleadings, Brown subsequently cooperated in the investigation and prosecution of the persons operating the pharmacies who were held criminally responsible in related federal cases in Mississippi for more than $200,000,000 in total claims paid for medically unnecessary compounded medications resulting from illegal kickbacks paid to sales representative and physicians around the country. 

     “Health care fraud raises costs on consumers, hurts businesses, and can subject persons to unnecessary treatment,” said U.S. Attorney Mark Totten.  He continued: “Those who scheme to defraud our public and private health care providers, and those who pay and receive kickbacks to influence the generation of medical services, face aggressive prosecution, significant financial penalties, and the real prospect of prison.” 

     “Individuals like Mr. Brown, who enrich themselves through fraud schemes, undermine the healthcare system and drives up costs for everyone,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “The FBI remains committed to working closely with our law enforcement partners to swiftly and thoroughly investigate such fraud allegations and bring criminals who engage in these schemes to justice.”

     This case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services, Office of Inspector General, Blue Cross Blue Shield of Michigan Corporate and Financial Investigations Unit, and the Michigan State Police.  Assistant U.S. Attorney Raymond E. Beckering III prosecuted the case.

                                                                                                    ###

     GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced today that ASP Plating Company, of Grand Haven, Gary Stephen Rowe, 70, of Grand Haven, and Stephen Frederick Rowe, 38, formerly of Grand Haven and currently of Oklahoma, pled guilty to criminal violations of the Clean Water Act before the Honorable Sally J. Berens, United States Magistrate Judge.  The company and Gary Rowe, its president, pled guilty to a felony violation of the Clean Water Act, and Stephen Rowe, its vice president, pled guilty to a misdemeanor.  The Court will set one or more dates for sentencing hearings.

     According to public records, the individual defendants operated the corporate defendant, an electroplating company that held an industrial pretreatment permit issued by the Grand Haven-Spring Lake Sewer Authority.  At least between 2015 and 2021, the company routinely violated the permit by dumping zinc in excess of the daily and monthly limitations, by releasing zinc in batches without notice, and by bypassing the mandatory pretreatment system entirely.  The Sewer Authority periodically monitored the company’s discharges, but Gary and Stephen Rowe instructed employees to make sure the monitor was absent before discharging wastewater containing excessive amounts of zinc.

     “No resource is more precious in Michigan than our waters, which define the very boundaries of our state,” said U.S. Attorney Totten.  “These defendants blatantly and repeatedly thwarted their obligation to properly treat and dispose of wastewater.  As U.S. Attorney, I will do everything I can to protect our water.  Individuals and businesses that commit environmental crimes will be held accountable.”

     The Clean Water Act is the primary law governing pollution of the Nation’s surface waters. Congress first passed the law in 1948, totally revised it in 1972, and subsequently amended the law several times thereafter.  In passing the law, Congress declared that its purpose was “to restore and maintain the chemical, physical, and biological integrity of the Nation’s waters.”  33 U.S.C. § 1251(a).  Among other provisions, the Act regulates industrial and municipal discharges.  To achieve its goal of preserving clean water, parts of the Act are based on the concept that all discharges into the Nation’s waters by industrial and municipal users are illegal unless specifically authorized by a permit.  The law has civil, criminal, and administrative enforcement provisions.

     The U.S. Environmental Protection Agency’s Criminal Investigation Division investigated the case.  Assistant U.S. Attorney Justin M. Presant is prosecuting the matter.

     The Plea Agreement for Defendant Gary Rowe is available here.  The Plea Agreement for Defendant Stephen Rowe is available here.  The Plea Agreement for Defendant ASP Plating Company is available here.  For each agreement, a recitation of the relevant facts begins on page 3.  The document charging the case, called the Information, is available here.

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Three Miami Residents Stole $1,400,000 From Hundreds of Depositors by Posing as Security Officials to Obtain Access to Online Accounts.

          GRAND RAPIDS, MICHIGAN — U.S. District Judge Paul Maloney today sentenced Cedric Smith to a prison term of 70 months.  His sentence is the last handed down in a West Michigan federal case charging three Miami, Florida residents with bank fraud and aggravated identity theft. 

          In February 2021, a grand jury charged Cedric Smith, Daja Smith and Devonte Hoskins with stealing the identities of customers of banks and credit unions and then using that information to commit widespread fraud.  Prior to today’s sentence, Judge Maloney ordered Daja Smith to a prison term of five years; Devonte Hoskins received a term of six years. 

          The fraudulent scheme exploited the online system used by customers of banks and credit unions everywhere.  The defendants identified a targeted customer’s online account using compromised personal information they purchased from computer hackers on the internet.  To obtain a customer’s confidential password and access to the money in the customer’s account, the defendants called the customer, posing as bank security personnel, and induced the victim to share the onetime code a bank sends its customers when they need to reset their password.  Then defendants drained the victim’s account and moved the money to where they could use it for their own purposes. The defendants, operating out of Miami, Florida, targeted victims around the U.S. in this fashion, including customers of United Federal Credit Union in St. Joseph, Michigan.  Total losses are estimated at $1,400,000.     

          U.S. Attorney Mark Totten stated he was pleased with the convictions and sentences.  “Online thieves like these think they will never be caught because they can hide on the internet.  They are wrong.  We have the tools to identify and hunt them down, even if they committed their crimes from hundreds of miles away.  And that is what we will do.”

          “These defendants may have thought they were beyond the reach of law enforcement because their crimes were committed entirely online," said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “They were sorely mistaken. The FBI treats these types of financial crimes very seriously and we will use our considerable resources to bring cybercriminals to justice.”

          This case was investigated by the St. Joseph office of the Federal Bureau of Investigation.  Prosecution was handled by Assistant United States Attorney Timothy VerHey.           

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          GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced that his office filed a criminal complaint today charging Joshua Brereton with setting fire to a Planned Parenthood building in Kalamazoo, Michigan. Brereton, age 25, is a resident of Paw Paw, Michigan.

          On July 31, 2022, law enforcement received a report of a fire in progress at the Planned Parenthood in Kalamazoo. Subsequent investigation, including review of video surveillance from the fire scene, revealed that, at approximately 4:00 p.m., a man now identified as Brereton breached the fence surrounding the building, used a combustible fuel to ignite the exterior bushes of the building, lit a fireplace starter log, and then threw the burning log onto the roof of the building, ultimately starting two separate fires. After the fires started, Brereton fled the scene.

          The complaint alleges that, approximately an hour before setting the fire, Brereton purchased citronella torch fuel, a Duraflame starter log, and a utility lighter from a Walmart in Paw Paw, Michigan. He also purchased a baseball cap similar to the one depicted being worn by the suspect in Planned Parenthood’s surveillance footage.

          Prior to the fire, the complaint also alleges that Brereton posted a video to his YouTube channel discussing abortion and abortion policy and referring to abortion as “genocide.” In the video, Brereton also encouraged others to “step out of your comfort zone” and lend a hand in the fight.

          If convicted of the arson charge, Brereton faces up to 20 years in prison and a mandatory minimum sentence of five years.

          Brereton’s arrest followed a joint investigation by multiple law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation (FBI), and the Kalamazoo Department of Public Safety (KDPS). The case is being prosecuted by Assistant United States Attorney Stephanie Carowan.

          The charges in a complaint are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law. A copy of the criminal complaint and the allegations are attached to this release.

Brereton Complaint

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Talsma is last of four defendants sentenced for participating in the mail fraud scheme

          GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced today that Chief United States District Judge Hala Y. Jarbou sentenced Geoffrey Mark Hays Talsma, 37, of Portage, Michigan, to 16 years’ imprisonment for mail fraud and aggravated identity theft.  Talsma’s sentence additionally includes an order to pay restitution to Amazon in the amount of $3,227,347.82.  While imposing the sentence, Chief Judge Jarbou commented that Talsma “concocted the scheme and involved many others.”         

          “Financial crime harms businesses and harms consumers. When someone cheats, we all pay,” said U.S. Attorney Totten.  “My office will not tolerate financial fraud and will vigorously pursue those who profit from defrauding others.”                

          According to court documents, from January 2016 to March 2021, Talsma defrauded Amazon by using the internet to create numerous Amazon accounts and email accounts to rent textbooks and sell the textbooks for a profit when he should have returned the textbooks or paid the agreed upon buy-out price.  Talsma caused Amazon to ship the textbooks through the United States Postal Service or across state lines using private commercial carriers.  He concealed his fraudulent activities in part by recruiting and paying unwitting individuals to accept shipments of stolen textbooks at their homes so that Amazon would not detect a pattern of large volumes of books going to locations associated with him.  Over time, Talsma taught some of these same individuals his scheme to defraud and actively supervised their participation in the fraud.  Defendant shared the profits of the fraud scheme with these individuals after he sold the textbooks over the internet and at various bookstores, including a bookstore in Kalamazoo, Michigan.  Additionally, according to the plea agreement, Talsma also ordered rental textbooks in the names of unwitting individuals and then pretended to be those individuals when calling Amazon and falsely claiming that he did not receive the textbooks.  Talsma then received a credit from Amazon that he used to order additional textbooks.  The fraud scheme caused losses to Amazon well in excess of $3,000,000.00. 

          “For years, Talsma and others enriched themselves by targeting an Amazon program designed to help students save money,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “Mr. Talsma's sentence sends a strong message that the FBI is committed to working with corporations and our law enforcement counterparts to root out this type of fraud and to hold those who participate in these schemes accountable for their criminal behavior.”  

          “The U.S. Postal Inspection Service is committed to working with our law enforcement partners to pursue those who utilize the U.S. Mail to perpetrate fraudulent schemes and bring them to justice” said Inspector in Charge Rodney M. Hopkins, U.S. Postal Inspection Service, Detroit Division. “This investigation, and today’s sentence reaffirms the important role the U.S. Postal Inspection Service plays in protecting our American consumers and businesses from fraudulent schemes that utilize the U.S. Mail.”

          Talsma is the last of four defendants to be sentenced for their roles in the mail fraud scheme.  The other individuals previously sentenced include:

• Lovedeep Singh Dhanoa, age 25, of Portage, Michigan – 15 months’ imprisonment
• Paul Steven Larson, age 32, of Kalamazoo, Michigan – 6 months’ imprisonment
• Gregory Mark Gleesing, age 44, of Portage, Michigan – 3 years’ probation, including 4 months’ home detention.

          The offices of the Federal Bureau of Investigation, Kalamazoo, and the United States Postal Inspection Service, Grand Rapids, investigated the case.  Assistant U.S. Attorney Ronald M. Stella prosecuted the case.  Amazon referred the matter to law enforcement and provided significant support to the investigation. 

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          GRAND RAPIDS – David D. Sova, D.O., of Grand Rapids entered into a settlement with the United States in which he agreed to a court order to never prescribe controlled substances.  According to the terms of the consent decree entered by U.S. District Court Judge Jane M. Beckering, Dr. Sova is also ordered to pay $170,000 in civil penalties to resolve the United States’ allegations that he forged opioid prescriptions for his own use.  

          In its civil complaint, the United States alleges that Dr. Sova issued prescriptions for controlled substances without a legitimate medical purpose and outside the usual course of professional practice in violation of the Controlled Substances Act.  Specifically, the United States alleges that Dr. Sova issued prescriptions for the opioids oxycodone and hydrocodone purportedly written for one of his patients.  However, this patient never received these prescriptions, as Dr. Sova arranged for them to be filled and collected for his own personal use.

          “Responsibility to protect against diversion of controlled substances starts with the provider,” said U.S. Attorney Mark A. Totten.  “When a physician breaks the rules and diverts controlled substances for their own use, they cannot be entrusted to prescribe controlled substances to others and must face the legal consequences of their own misconduct.  My office will continue to work with DEA and state law enforcement to enforce compliance with controlled substance prescribing laws.”

          “Medical and dental professionals must not abuse the privilege of prescribing controlled substances,” said Drug Enforcement Administration Special Agent in Charge Orville Greene, Detroit Field Division.  “DEA will continue to work with all levels of law enforcement to investigate allegations of unlawful prescribing.”

          This case was investigated by DEA and the U.S. Attorney’s Office for the Western District of Michigan.  Assistant U.S. Attorney Andrew J. Hull represented the United States.

          The complaint and consent decree in this case can be found on the Court’s online docket under United States v. Sova, No. 1:22-cv-658 (W.D. Mich.).

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

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          BAY CITY – A Whittemore, Michigan, resident pleaded guilty today to two separate criminal cases related to the placement of explosive packages outside cellphone stores in Cheboygan, and Sault Ste Marie, Michigan, announced Eastern District of Michigan United States Attorney Dawn N. Ison and Western District of Michigan United States Attorney Mark Totten. Whittemore and Cheboygan are in the Eastern District and Sault Ste. Marie is in the Western District.

          Ison and Totten were joined in the announcement by Special Agent in Charge James A. Tarasca, Federal Bureau of Investigation, Detroit Division.

          John Douglas Allen, 76, pleaded guilty before United States District Judge Thomas Ludington in Bay City, Michigan. Allen faces up to 20 years in prison when he is sentenced on November, 9, 2022.

          During the plea hearing, Allen admitted that on September 15, 2021, at approximately 7:36 pm, he placed a United States Postal Service (USPS) box with black tape on it and a wire coming out of it outside an AT&T Store in Sault Ste. Marie, Michigan. Later that evening, Allen placed another USPS box with black tape on it and a wire coming out of it outside of a Verizon Store in Cheboygan, Michigan. The two devices were examined by the FBI laboratory Explosive Unit, which concluded that the two devices were improvised explosive devices (IEDs), also commonly referred to as pipe bombs. Both pipe bombs contained shrapnel and a threat note demanding $5 million. Based on video footage taken from the cell phone stores and other nearby businesses, as well as an exhaustive investigation by law enforcement, agents were able to determine that Allen was the person who left the packages outside of the stores.

          In addition, Allen pleaded guilty to placing letters containing threats aimed at telecommunications providers at cell towers located in the Upper Peninsula.

          “The actions of this defendant could have resulted in significant bodily harm or death to citizens in the area,” stated U.S. Attorney Ison. “Thanks to the hard work of our law enforcement partners and prosecutors, we were able to find and remove these dangerous devices before the defendant could cause serious harm.”

          U.S. Attorney Totten added, “Allen’s actions in placing pipe bombs in front of commercial businesses in Sault Ste. Marie and Cheboygan endangered the lives of innocent citizens, first responders, and the bomb technicians who rendered those devices safe. Grievances and disputes cannot be communicated or resolved through threats of violence or extortion.”

          This case was investigated by special agents, intelligence analysts, troopers, deputies, and officers from the FBI, Michigan State Police, Cheboygan County Sheriff's Office, Cheboygan Police Department, Sault Ste. Marie Police Department, Sault Ste. Marie Tribal Police, the US Coast Guard Investigative Service, US Border Patrol and ATF.

          Assistant U.S. Attorneys J. Michael Buckley, Jerome Gorgon, Christopher O’Connor and Theodore Greeley are prosecuting the case in their respective districts.

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          GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced today that Saul Douglas Briggs, a/k/a “76 Chain,” a/k/a “Chain,” a 32 year-old resident of Muskegon, Michigan, has been indicted on multiple drug trafficking charges, including conspiracy to distribute fentanyl, heroin, cocaine, and methamphetamine, as well as possession of controlled substances with the intent to distribute them. Briggs is also charged with illegal firearms possession and maintaining a drug house.

          The charges stem from a series of search warrants conducted by law enforcement in and around the Muskegon area in June 2022. On the afternoon of June 15, 2022, investigators raided  a residence at 2060 Letart Avenue in Muskegon, which they suspected to be a stash house used by Briggs and other drug traffickers to store and process their illegal products. Inside, investigators seized approximately 8 kilograms of suspected fentanyl, 774 grams of suspected black tar heroin, 61 grams of suspected cocaine, and 22 grams of suspected methamphetamine. They also seized extensive drug trafficking paraphernalia as well as seven firearms, including four assault style rifles, a tactical shotgun, and two semi-automatic pistols. They recovered one of the pistols under the seat of Briggs’s vehicle.  In related searches as part of the same investigation, law enforcement also seized nearly $250,000 in cash believed to be proceeds of drug trafficking, jewelry, and multiple vehicles.

          At the time of the search of the residence at 2060 Letart Avenue, Briggs, who had been inside, attempted to flee on foot, running out of the house and jumping over the back fence of the residence. Investigators apprehended Briggs and took him into custody at that time.

          The investigation into Briggs is part of Operation Interstate Zeus, an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation that began in 2019 and has been led by the Drug Enforcement Administration (DEA) and members of Michigan State Police’s West Michigan Enforcement Teams (WEMET).  To date, the operation has led to the prosecution and conviction of 10 separate defendants on drug trafficking charges.

          OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.         

          The charges in the indictment are merely accusations and are not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law. The government has the burden of proving guilt beyond a reasonable doubt.

          This case is being prosecuted by Assistant U.S. Attorney Stephanie M. Carowan. 

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Latest of Multiple Drug Traffickers Sentenced as Part of a Targeted Investigation

          GRAND RAPIDS, MICHIGAN – U.S. Attorney Mark Totten announced today that U.S. District Judge Paul L. Maloney sentenced Delando Johnson, a/k/a “Fox,” of Muskegon, Michigan to 20 years’ imprisonment – 15 years for drug trafficking to be followed by five years for possessing a firearm in furtherance of his drug trafficking. 

          Johnson sold heroin and fentanyl on three occasions in May 2020. When investigators went to arrest Johnson for the deals, they found him in possession of more heroin and fentanyl, as well as crack cocaine, $700, and a digital scale. At Johnson’s home, investigators also found all of the hallmarks of large-scale drug trafficking – more than 280 grams of methamphetamine, nearly 100 grams of fentanyl, and crack cocaine, as well as extended rifle magazines, loose ammunition, digital scales, and baggies used to package drugs for sale. Inside a safe, Johnson had also secreted drugs as well as more than $6,000 in cash, and a stolen, loaded .45 caliber handgun. Johnson later admitted as part of his guilty plea that he intended to sell the drugs for profit and that he had the gun in furtherance of his drug dealing activities.

Crack cocaine, fentanyl, a loaded, stolen .45 caliber pistol, and over $6,000 seized from a safe in Johnson’s home

          At sentencing, Judge Maloney remarked that Johnson’s crimes were “grave indeed,” particularly in light of the deadly nature of fentanyl, the large amount of methamphetamine, and Johnson’s possession of a gun. Judge Maloney characterized Johnson as “a threat to the public” who committed a serious crime and needed to be deterred from future criminal conduct.

          “Delando Johnson’s actions endangered his community and put innocent citizens at risk. Today, he has been held accountable for his actions,” said U.S. Attorney Mark Totten. He continued: “This sentence sends a strong message that large-scale drug trafficking and illegal gun possession will not be tolerated in this district and that drug traffickers who peddle these poisons in our community will face stiff prison sentences.”

          “I would like to thank our law enforcement partners that contributed to removing Mr. Johnson from our streets,” said Orville Greene, Special Agent in Charge of the Drug Enforcement Administration’s Detroit Division. “Fentanyl is a dangerous drug that contributes to a significant number of the overdoses we see in this country each day. Today, Mr. Johnson was held accountable for his actions.”

          “This sentence is a significant step in disrupting drug trafficking in and around the Muskegon area,” declared Detective Lieutenant Andrew Ambrose, commander of the West Michigan Enforcement Team (WEMET), a division of the Michigan State Police and one of the lead investigative agencies on the case. “This prosecution and the prosecution of Johnson’s associates would not have been possible without the longstanding cooperation between law enforcement agencies. Criminals do not adhere to imaginary jurisdictional boundaries and because of cooperative efforts like the one here, neither do we.”

          Johnson’s sentence is the most recent in a series of sentences handed down for drug traffickers prosecuted as part of Operation Interstate Zeus targeting drug trafficking in the Muskegon area. Others prosecuted as part of Operation Interstate Zeus received the following sentences:

• Zachary Kennedy, a/k/a “Zeus” – 210 months in prison for conspiracy to distribute methamphetamine, heroin, fentanyl, and crack cocaine;
• Brent Wilkerson, a/k/a “Pay”– 144 months in prison for distribution of 50 grams or more of methamphetamine;
• Daris Jefferson, a/k/a “Smoove” – 90 months in prison for possession of heroin and cocaine base (“crack”) with the intent to distribute it and possession of a firearm in furtherance of drug trafficking;
• Alezay Coleman, a/k/a “Zay” – 87 months in prison for possession of methamphetamine, fentanyl, and heroin with the intent to distribute it;
• Malik Jones-Smith, a/k/a “9” – 60 months in prison for distribution of five grams or more of methamphetamine; and
• Carl Johnson, a/k/a “Orangebone,” a/k/a “Bones”– 12 months and 1 day in prison for distribution of cocaine base (“crack”).

          Operation Interstate Zeus is an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation that began in 2019, led by the Drug Enforcement Administration (DEA) and members of Michigan State Police’s West Michigan Enforcement Teams (WEMET). Johnson is the latest in nearly a dozen defendants sentenced in the investigation, which led to the overall seizure of approximately 339 grams of methamphetamine, 113 grams of fentanyl, 93 grams of heroin, and quantities of cocaine and crack cocaine. Investigators also seized six handguns, jewelry worth approximately $20,000 and more than $20,000 in cash.  

          OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.    

          This case was prosecuted by Assistant U.S. Attorneys Stephanie M. Carowan and Vito S. Solitro. 

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January 2022 Robbery of Lake Michigan Credit Union

          GRAND RAPIDS, MICHIGAN — James Paul Sciamanna, 49, from Grand Rapids, was sentenced to serve 42 months in the Federal Bureau of Prisons for committing the robbery.  U.S. District Judge Hala Y. Jarbou also ordered Sciamanna to serve 3 years of supervised release following his release from prison, pay a $1,250 fine, and make restitution for the unrecovered money.

James Paul Sciamanna

          On January 4, 2022, Sciamanna robbed the Lake Michigan Credit Union located at 2720 Lake Michigan Drive NW, in Walker, Michigan.  Sciamanna entered the building, wearing a mask, wig and knit hat.  He showed the teller a demand note that said words to the effect “Don’t panic.  I have a gun. I will shoot.  Give me everything you have.  I have bullets.”  The teller complied and gave Sciamanna $3,734.

          Sciamanna fled the credit union and ran to a truck with a California license plate that was parked nearby.  Police recovered video surveillance from a neighboring business that captured an image of the getaway vehicle.

          An officer with the Walker Police Department recognized the truck after having recent contact with Sciamanna.  That evening, Grand Rapids Police officers found the truck parked on the street in a Grand Rapids neighborhood.  Police officers canvased the area and found Sciamanna hiding in the bushes.  After he was advised of his rights, Sciamanna confessed to the robbery and told police where to find money that he had buried and identified the people he gave money to.  Police recovered all but $11 of the stolen money.

          At sentencing, Judge Jarbou expressed skepticism of Sciamanna’s claim that he only did it because of his recent drug addiction and noted his long history of drug use and prior efforts at drug addiction counseling.  “How can I be assured that you won’t do this again?”  Judge Jarbou observed that “walking up to a teller and threatening them . . . has impact on the person;” adding, it is a “traumatic thing.”  The judge stated her desire to “protect the teller.” 

          U.S. Attorney Mark Totten stated, “Robbers of banks and credit unions threaten vital community institutions and inflict trauma on the tellers and other employees who experience these ordeals.  I am grateful to the law enforcement officers and members of my team who apprehended and successfully prosecuted Mr. Sciamanna. My office will hold robbers accountable and will never lose sight of the individuals victimized by crime.” 

          “Mr. Sciamanna threatened the life of an innocent bank teller, which not only traumatized her but deprived her of her right to feel safe and secure in her workplace,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “The FBI remains committed to working with our law enforcement partners to bring violent offenders to justice and to making our communities safer places to live and work.”

          This case was prosecuted by Assistant U.S. Attorney Daniel Mekaru, in cooperation with the Kent County Prosecutor’s Office, and investigated by the Grand Rapids Police Department, and the FBI with the assistance of the Walker Police Department.

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          GRAND RAPIDS, MICHIGAN —U.S. Attorney Mark Totten announced today that Eugene Jonas Hicks, age 38, of Lansing, was sentenced to 10 years imprisonment after previously pleading guilty to possessing with the intent to distribute controlled substances and possessing a firearm in furtherance of drug trafficking.  In addition to the prison term, U.S. District Court Judge Janet T. Neff imposed a 4-year term of supervised release, which will begin when Hicks is released from prison.  Hicks was previously convicted of multiple prior felonies, including home invasion and aggravated stalking.

          On May 12, 2021, law enforcement officers in Lansing attempted a traffic stop of a vehicle driven by Hicks in Lansing.  A high-speed vehicle pursuit followed.  During the pursuit, Hicks threw a loaded Taurus .357 revolver from the vehicle.  Hicks also threw plastic bags containing cocaine, cocaine base, and methamphetamine from the sunroof.  These items could have been accessible to the public had they not been recovered by law enforcement.  Hicks disregarded stop signs and red lights, driving into oncoming traffic.  The pursuit ultimately ended when Hicks crashed his vehicle in traffic, resulting in injuries to a passenger.  Hicks then attempted to flee on foot but was apprehended by authorities. 

          U.S. Attorney Totten said, “Drugs and guns are a toxic mix, which is only made worse when they are possessed by convicted felons and thrown out of vehicles onto our streets.  Our office will continue to work together with all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.”

          This case resulted from a coordinated investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lansing Police Department, Lansing’s Violent Crime Initiative Unit, and the Michigan State Police.  This case was prosecuted by Assistant U.S. Attorney Lauren F. Biksacky.

          This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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Roddrick Wilson intended to sell over 15,000 fake Adderall® pills that subsequently tested positive for methamphetamine at time of his arrest in August 2021

          GRAND RAPIDS, MICHIGAN —U.S. Attorney Mark A. Totten announced that on June 24, 2022, U.S. District Judge Paul L. Maloney sentenced Roddrick Montez Wilson, 26, of Muskegon and Grand Rapids, to 23 years in prison for possessing with intent to distribute methamphetamine and possessing a firearm in furtherance of drug trafficking.

          During a traffic stop in August 2021, Michigan State Police in Muskegon found Wilson in possession of over 15,000 fake pills that appeared to be Adderall®, an amphetamine used to treat ADHD and narcolepsy, but the pills were in fact methamphetamine. Wilson intended to sell the pills, worth an estimated $75,000, and possessed a loaded, stolen firearm in furtherance of that crime. After further investigation by the Drug Enforcement Administration, investigators learned that law enforcement in Grand Rapids had encountered Wilson in February and June 2021, and on both occasions, found smaller quantities of the same type of fake pills, in addition to a firearm in June and other drugs in February.

Over 15,000 fake Adderall® pills and a stolen firearm seized from Roddrick Wilson in Muskegon, Michigan on August 25, 2021

          “Counterfeit pills pose a significant danger to our communities,” said U.S. Attorney Totten. “There are often devastating consequences for drug users who ingest fake pills bought off the street. My office is committed to raising awareness about this issue, and prosecuting those individuals who seek to profit off the distribution of counterfeit substances.”

          According to the DEA,[1] a nationwide surge in fake prescription pills, made and marketed by criminal drug networks, is driving harm, violence, and overdoses across the United States. Fake pills are marked as legitimate prescription pills to deceive the American public, are easy to purchase, and widely available. Between August and December 2021, almost 10 million fake pills were seized by law enforcement nationwide. You should never take prescription medication that was not prescribed to you by your doctor and dispensed by a licensed pharmacist. For more information about the DEA’s “One Pill Can Kill” campaign, visit: https://www.dea.gov/onepill.

          Fake pills can be hard to detect. Wilson possessed fake Adderall® pills like the ones depicted below:

Counterfeit Adderall® pills, front and back

          Authentic, or real Adderall® pills, are shown below:

Authentic Adderall® pills, front and back

          “Across the Midwest, law enforcement is seizing methamphetamine pressed into fake-pill form so that it appears to be a less potent substance, such as Xanax or Adderall. This case should serve as a stark reminder to everyone: the only pill anyone should take is one that has been prescribed by a physician and obtained at a legitimate pharmacy,” said Orville O. Greene, Special Agent in Charge of the DEA’s Detroit Division.

          The DEA, Michigan State Police, and Grand Rapids Police Department investigated this case, which was prosecuted by Assistant U.S. Attorney Dan McGraw.

[1] https://www.dea.gov/sites/default/files/2022-03/20220208-DEA_OPCK%20Overview%20and%20Key%20Results.pdf

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DMR Transportation Falsified Financial Records To Receive A Second-Draw Loan Under The Paycheck Protection Program

          GRAND RAPIDS, MICHIGAN — Semsi Salja and Anes Suhonjic, the owners of Grand Rapids-based trucking company DMR Transportation (“DMR”), pleaded guilty in federal court today to conspiring to commit bank fraud in connection with a $290,855.00 loan under the Paycheck Protection Program (“PPP”). In a related civil case, DMR, Salja, and Suhonjic agreed to pay a total of $1,000,000.00, including a substantial civil monetary penalty under the Financial Institutions Reform, Recovery, and Enforcement Act (“FIRREA”).

          In 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) to provide emergency federal assistance to the millions of Americans suffering from the economic effects of the COVID-19 pandemic.  Through the PPP, the CARES Act authorized forgivable loans to small businesses for job retention and certain other expenses.  In December 2020, Congress enacted the Economic Aid to Hard-Hit Small Businesses Act, which reopened the PPP to first-time borrowers and, subject to stricter limitations and conditions, authorized second-draw PPP loans to borrowers that previously received a PPP loan.  Borrowers were eligible for second-draw PPP loans if, among other things, they experienced a revenue reduction of 25% or greater in 2020 relative to 2019.

          In its second-draw PPP loan application, DMR knowingly and falsely certified that it realized the required 25% reduction in gross receipts between the second financial quarter of 2019 and the second financial quarter of 2020.   DMR also submitted falsified quarterly balance sheets and other false financial records that were signed by Salja and Suhonjic alongside the application.  In September 2021, DMR sought forgiveness of its second-draw PPP loan by falsely certifying that its second-draw PPP loan proceeds were used to pay eligible business expenses when, in fact, DMR held that money in reserve. 

          “The PPP involved a limited pool of funds to help small businesses wracked by the disruption of a global pandemic,” United States Attorney Mark Totten said.  “By fraudulently obtaining a second PPP loan, DMR took, for itself, hundreds of thousands of dollars that could have been used to help deserving companies.  My office will continue to aggressively investigate and prosecute these cases.”

          “By illegally taking additional money from the Paycheck Protection Program, these defendants harmed the owners and employees of small businesses struggling through the pandemic,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “The FBI is committed to working with our law enforcement partners to investigate and hold accountable anyone taking advantage of a global pandemic to line their own pockets.”

          “Today’s guilty plea and FIRREA civil penalties hold the defendants responsible for their roles in fraudulently obtaining a second loan under a federal relief program created to assist small businesses who were struggling as a result of the pandemic,” said Special Agent in Charge Kathy A. Enstrom of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “The FDIC-OIG remains committed to working with our law enforcement partners to hold those accountable who seek to abuse such programs and undermine the integrity of our Nation’s banks.”

          Salja and Suhonjic face a maximum of five years in prison.  United States District Judge Jane M. Beckering will determine their sentences after considering the U.S. Sentencing Guidelines and other statutory factors.

          The civil settlement includes the resolution of claims brought under the whistleblower provisions of the False Claims Act.  Under those statutory provisions, a private party can file an action on behalf of the United States and receive a portion of the settlement or judgment proceeds.  The whistleblower case is captioned, United States ex rel DePouw v. DMR Transportation, et al., No. 1:21-cv-548 (W.D. Mich.).

          Assistant U.S. Attorneys Davin M. Reust and Adam B. Townshend represented the United States.  The Federal Deposit Insurance Corporation’s Office of Inspector General and the FBI investigated the case.

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          GRAND RAPIDS, MICHIGAN —U.S. Attorney Mark Totten announced today that  Nathon James Zink, 34, was sentenced to 112 months in federal prison for mailing threatening communications to state and federal judges.  U.S. District Court Judge Hala Y. Jarbou imposed the sentence and ordered that it be served consecutively to the state court sentences Zink is currently serving with the Michigan Department of Corrections. After release from prison, Zink will be on supervised release for three years.         

          In August and September 2020, Zink was an inmate at a Michigan Department of Corrections facility when he sent threatening letters through the U.S. Postal Service to state and federal court judges.  The letters included threats to extort, kidnap, sexually assault, and kill judges and their family members.  One letter, which was sent to the U.S. District Court in Kalamazoo, Michigan, stated it contained the biological agent anthrax.  Authorities investigated and determined the letter was safe and did not contain any anthrax.  On March 8, 2022, Zink pled guilty to one count of mailing a threatening communication and one count of mailing a threatening communication to a federal employee.

          While sentencing Zink, Judge Jarbou emphasized the extremely serious nature of the threats Zink made, noting they were “vulgar and violent” and that his extensive criminal history indicated he was “capable of hurting others.”

          “Mailing threatening communications is a serious federal crime and Mr. Zink’s threats were especially depraved. No one should have to live in fear based on threats like these,” said Mark Totten, U.S. Attorney for the Western District of Michigan. “My office will not hesitate to prosecute these crimes, especially when the targets are public officials who play a critical role upholding our democracy.”

          “Nathon Zink’s actions were intended to incite fear and intimidate members of our state and local judicial system,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “Threats of violence against public servants have no place in our society and the FBI will use every available resource to disrupt and investigate those threats.” 

          This case was investigated by the Federal Bureau of Investigations with important additional assistance provided by the U.S. Marshals Service, U.S. Department of Homeland Security, Kalamazoo Department of Public Safety, Van Buren County Sheriff’s Office, and the Michigan Department of Corrections. The case was prosecuted by AUSA Lauren Biksacky.

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          GRAND RAPIDS, MICH. – United States Attorney Mark A. Totten announced today that a federal grand jury charged two men with fraudulently acquiring 62 pistols and rifles from federally licensed firearms dealers in Michigan and Ohio by lying about who was purchasing and paying for the weapons they effectively stole from the dealers to resell to others for profit.     

          According to the indictment, Jonathan-Michael Brown, age 23, and Jalen Kenyatta-Malik Jackson, age 24, both of Flint, Michigan, illegally purchased 62 firearms (and attempted to purchase 19 additional firearms) from federally licensed firearms dealers using multiple fraudulent methods.  Brown had previously been convicted of a felony offense and could not lawfully possess any firearms.  It is alleged that Brown acquired firearms by posing as another person and using the driver’s license of that person and credit card account numbers of other victims to purchase the weapons for resale.  The Indictment further alleges that Brown recruited Jackson to make false statements to gun dealers when he acquired multiple firearms using credit card numbers assigned to other victims to purchase those weapons to resell to others.  As a result, the cost of the guns was passed on to others and Brown and Jackson transferred the firearms to others for profit. 

          Brown was charged with two counts of making false statements to firearms dealers, two counts of being a felon in possession of firearms, two counts of aggravated identity theft, conspiracy to commit wire fraud, and two counts of wire fraud.  Jackson was charged with two counts of making false statements to firearms dealers, conspiracy to commit wire fraud, and two counts of wire fraud.  If convicted, Brown and Jackson face a maximum of 20 years in prison on the wire fraud charges and a maximum of 10 years in prison for making false statements to firearms dealers.  Brown also faces a maximum of 10 years in prison for being a felon in possession of the firearms and a mandatory consecutive 2 years in prison for aggravated identity theft.  Both defendants also face a period of supervised release, restitution, and other monetary penalties.  Upon conviction, a federal district judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

          The charges in the indictment are merely accusations and are not evidence of guilt.  The defendants are presumed innocent unless and until the government proves them guilty beyond a reasonable doubt in a court of law.

          The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating this case.

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Physician restricted from future controlled substance prescribing

          GRAND RAPIDS – A Muskegon physician pleaded guilty on May 25, 2022, to a felony information charging her with one count of health care fraud.  According to court documents, Soaries Maxine Peterson, M.D., 68, billed Medicare, Medicaid, and Blue Cross Blue Shield for services that she did not perform.  Dr. Peterson admitted that she billed for office visits for patients who came to her office, often to obtain monthly prescriptions for controlled substances, when she was on vacation out of state or when she was outside of the office performing other services.  During these encounters, patients met only with unlicensed office staff and no qualified health professional.

          As part of a global settlement, Dr. Peterson also agreed to pay the United States and the State of Michigan $500,000 to resolve her civil liability under the False Claims Act for the alleged fraudulent claims she billed to Medicare and Medicaid, as well to resolve her federal liability under the Controlled Substances Act related to her prescribing of controlled substances.  More specifically, the United States alleges that Dr. Peterson wrote prescriptions for controlled substances to her patients without a legitimate medical purpose and outside the usual course of professional practice.  As part of the investigation, Dr. Peterson surrendered her Drug Enforcement Administration (“DEA”) registration for cause, and she has agreed to never reapply for a new registration, preventing her from ever prescribing opioids and other controlled substances in the future.

          “Health care providers who fraudulently bill for services they did not provide must be held accountable, especially when those services involve the prescribing of controlled substances,” said U.S. Attorney Mark Totten.  “The citizens of this district deserve better.  My office is committed to working with our federal and state partners to combat this unprofessional, unsafe, and unlawful behavior in Michigan.”

          “I appreciate the coordinated effort across state and federal agencies to reach this outcome,” Michigan Attorney General Dana Nessel said. “My office will continue to work with our partners to ensure providers who commit fraud are held accountable. Patients and all Michigan residents deserve better.”

          “The charges to which Peterson pleaded guilty describe a person who was more motivated by greed than by her duty to provide appropriate medical care to patients,” said James A. Tarasca, Special Agent in Charge of the Federal Bureau of Investigation (“FBI”) in Michigan. “The FBI will continue to work alongside our law enforcement partners to investigate health care fraud committed by medical professionals who defraud federal health care programs and knowingly place their patients at risk.”

          “Providers who fraudulently bill federal health care programs and prescribe controlled substances without a medical need show no regard for the well-being of their patients and irresponsibly divert funds needed to care for beneficiaries,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General (“HHS-OIG”).  “Our agency will continue to work with our law enforcement partners to investigate and hold accountable providers who engage in fraud and endanger the beneficiaries of our federal health care programs.”

          “Disregard for laws regulating controlled substances is what is fueling the nation’s overdose epidemic,” said Kent R. Kleinschmidt, DEA Acting Special Agent in Charge for the Detroit Field Division.  “This reckless behavior will not be tolerated, and DEA is committed to pursuing anyone who fails to meet their prescribing obligations.”

          Dr. Peterson pleaded guilty to one count of health care fraud (18 U.S.C. § 1347). She is scheduled to be sentenced on Wednesday, September 7, 2022, and faces a maximum sentence of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

          This case is being investigated by the FBI, HHS-OIG, and DEA.  Assistant U.S. Attorney Andrew J. Hull represents the United States in the civil case, and Assistant Attorney General Stacy M. Race of the Michigan Department of Attorney General’s Health Care Fraud Division represents the State of Michigan in its civil case.

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          GRAND RAPIDS, MICHIGAN – U.S. Attorney Mark Totten announced today that U.S. District Judge Paul L. Maloney sentenced Semaj Williams of Kalamazoo, Michigan to 188 months in prison for running a methamphetamine distribution operation. Judge Maloney also sentenced Williams to a five-year term of supervised release following his release from prison.

          Williams spent years conspiring with others to sell methamphetamine in Kalamazoo and other locations throughout West Michigan. Over a period of four months in 2020, Williams supplied two dealers with ounces of methamphetamine on a daily basis and also supplied others. In March 2021, Kalamazoo Department of Public Safety officers stopped Williams with methamphetamine hidden at his feet in the backseat of a car. Overall, Judge Maloney found Williams responsible for distributing no less than five kilograms of methamphetamine. Judge Maloney also concluded that Williams had the highest-level criminal history category possible under the United States Sentencing Guidelines based on his previous convictions for assault with a dangerous weapon, home invasion, resisting police, and possession of controlled substances, among others.

          While sentencing Williams, Judge Maloney emphasized the extremely serious nature of methamphetamine, noting methamphetamine is a “scourge in the Western District of Michigan.” Judge Maloney also found Williams to be a threat to the public, imposing a 188-month sentence in order to deter Williams from committing future drug-trafficking crimes while simultaneously deterring other would-be drug traffickers from dealing a deadly drug.

          “Methamphetamine is a highly addictive and dangerous drug that is plaguing our communities,” commented U.S. Attorney Mark Totten. “Those, like Williams, who work with others to peddle this poison must be stopped.” 

          “Drug dealers are inherently dangerous and threaten the safety of our community. Williams’s sentencing and guilty plea send the message that violators will be held responsible for their actions,” stated Assistant Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. “This case is an outstanding example of how working with our Federal, State, tribal, and local partners protects our communities.”

          This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with important additional assistance provided by the Drug Enforcement Administration, the Kalamazoo Valley Enforcement Team (a unit of the Kalamazoo Department of Public Safety), Homeland Security Investigations, the Michigan State Police, the Calhoun County Sheriff’s Office, and the Nottawaseppi Huron Band of the Potawatomi Tribal Police. This case was prosecuted by Assistant U.S. Attorney Stephanie M. Carowan.

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          GRAND RAPIDS, MICHIGAN – U.S. Attorney Mark Totten announced that yesterday U.S. District Judge Jane M. Beckering sentenced Steven Chavez Phillips-Hall, age 30, of Grand Rapids, Michigan, to 115 months in federal prison for possessing firearms as a convicted felon, and for his role in gang-related shootouts during the summer of 2021. 

          Phillips-Hall, also known as “Bemis Steve,” has long been known to law enforcement as an active member of the Bemis Street gang in Grand Rapids. On March 11, 2021, officers with the Grand Rapids Police Department executed a search warrant on Phillips-Hall’s apartment while investigating him for assault and battery. In his apartment, law enforcement found two pistols fitted with large-capacity magazines. Months later, on August 9, 2021, members of the U.S. Marshals task force attempted to arrest Phillips-Hall on a felony warrant for carrying a concealed weapon. Phillips-Hall ran, leading law enforcement on a foot chase through a residential building near downtown Grand Rapids until he was finally apprehended. Phillips-Hall had in his possession a loaded pistol that, according to ballistics testing and cellphone location records, he had used three days earlier in a gunfight outside a bar in southwest Grand Rapids, which resulted in gunshot wounds to multiple innocent bystanders. Phillips-Hall’s apparent motive for that shooting was to retaliate against a rival gang that had ambushed him several weeks earlier in yet another shootout.

          In sentencing Phillips-Hall, Judge Beckering emphasized his history of violence and “demonstrated willingness to use firearms” against others. She observed that, despite Phillips-Hall’s long “pattern of disrespect for the law” and prior jail sentences, “nothing has deterred the defendant’s behavior.” Judge Beckering added, “We cannot have lawlessness in our community.”

          “Phillips-Hall has demonstrated an unconscionable disregard for the value of human life, and this sentence reflects the gravity of his crimes,” said U.S. Attorney Mark Totten. “We will hold accountable those who use firearms to jeopardize innocent lives. My office is laser-focused on investigating and prosecuting the most violent offenders in West Michigan, and this sentence advances that important mission.”

          “ATF is committed to the removal of violent repeat offenders who victimize and threaten the safety of our communities,” said ATF Detroit Special Agent in Charge Paul Vanderplow. “This sentence is indicative of our highly experienced Special Agents, utilizing unique information and intelligence programs to supplement our partnerships with local violent crime investigators and prosecutors which was critical to the success of this case.”

          “This is an excellent example of the partnership between local and federal law enforcement working together to get violent criminals off our streets,” said Grand Rapids Police Chief Eric Winstrom. “I am proud of the dedication and hard work of our officers to make Grand Rapids a safer place.”

          This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives  and the Grand Rapids Police Department, with important additional assistance provided by the United States Marshals Service and the Michigan State Police. This case was prosecuted by Assistant U.S. Attorney Patrick Castle. 

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The pharmacy will also be subject to a three-year Memorandum of Agreement with the Drug Enforcement Administration

          GRAND RAPIDS – Sixth Street Drugs, Inc., a Munson Healthcare subsidiary located in Traverse City, Michigan, has agreed to pay $1.5 million to the United States and enter into a three-year Memorandum of Agreement with the Drug Enforcement Administration (DEA) to resolve allegations that it violated the Controlled Substances Act (CSA) by filling numerous prescriptions for controlled substances despite red flags that the prescriptions were not valid.

          Under the CSA and DEA regulations, for a prescription to be effective, it must be issued for a legitimate medical purpose by an individual practitioner acting in the usual course of his professional practice. Pharmacies and pharmacists have a responsibility not to fill an invalid prescription and are prohibited from dispensing pursuant to an invalid prescription. When the circumstances around a prescription raise a red flag—a reasonable suspicion that the prescription is not valid—the pharmacist must conduct a further inquiry to ensure the prescription is valid. The CSA provides significant penalties, currently up to $72,683.00 for each such violation.

          The government began investigating Sixth Street Drugs based on information that it was an outlier in a number of categories relating to schedule II controlled substances, including its quantities of oxycodone, hydrocodone, morphine, and amphetamine. Following an administrative inspection in 2019, DEA alleged that Sixth Street Drugs failed to identify and resolve numerous red flags before filling prescriptions. Among other things, DEA contended that Sixth Street Drugs:

• filled hundreds of prescriptions that resulted in patients receiving dangerous drug cocktails (such as opioids with benzodiazepines, muscle relaxants, and/or stimulants);
• filled prescriptions that resulted in patients receiving extraordinarily high opioid doses that far exceeded federal dosage guidance;
• filled prescriptions for hundreds of individuals who were traveling long distances to receive prescriptions and to fill them at Sixth Street Drugs;
• filled prescriptions for many patients who had prescriptions from numerous prescribers and used multiple pharmacies (physician-shopper and pharmacy-shopper patients);
• filled prescriptions for patients of several providers who issued suspicious prescriptions and have since been sanctioned by state and federal authorities;
• provided early refills of opioid prescriptions on hundreds of occasions; and

• lacked appropriate written policies and procedures relating to dispensing controlled substances.

          As part of the settlement, Sixth Street Drugs entered into a three-year Memorandum of Agreement with DEA that, among other things, prescribes Sixth Street Drugs’ drug-handling responsibilities, mandates external controlled substance audits, and requires Sixth Street Drugs to institute a broad- based educational program focused on preventing drug diversion. In reaching this settlement, the government recognized the substantial steps Munson Healthcare took in response to DEA’s investigation to address problems relating to Sixth Street Drugs’ handling of controlled substances.

          “Prescription drug abuse and diversion—and the overprescribing that often enables them—have caused tremendous damage throughout the Western District of Michigan,” said U.S. Attorney Mark Totten. “My office will continue to investigate and hold accountable those who fail to live up to their legal responsibilities and contribute to this crisis, including pharmacies and physicians.”

          Kent R. Kleinschmidt, DEA Acting Special Agent in Charge for the Detroit Field Division, stated, “careless behavior and negligence allow for substances to be diverted and sold on the black market with no measure of accountability. This is the type of reckless behavior that fuels the opioid epidemic gripping the nation. DEA is committed to pursuing anyone who doesn’t live up to their obligations in safeguarding controlled substances.”

          The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan and the DEA. The case was investigated by the DEA Grand Rapids District Office Tactical Diversion Squad. The United States was represented by Assistant U.S. Attorney Ryan Cobb.

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

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          GRAND RAPIDS, MICHIGAN – U.S. Attorney Mark Totten announced today that Alison Renee Marshall, 45, of Sturgis, Michigan, pled guilty in the United States District Court in Lansing, Michigan, to a charge of tampering with a consumer product, specifically vials of liquid fentanyl at the hospital where she worked.  

          According to court documents, Marshall, a registered nurse who previously was employed in the interventional radiology unit of a hospital in Kalamazoo, Michigan, removed liquid fentanyl and replaced it with saline solution in July and August of 2020. On August 20, 2020, another nurse working in the interventional radiology unit recognized that a 72-year-old cancer patient undergoing a percutaneous chest tube placement procedure did not receive the expected pain relief from the liquid fentanyl that was administered at the outset of the procedure. A subsequent investigation by the hospital’s staff pharmacist revealed that several vials of fentanyl in the unit’s automated medication dispensing machines had caps that appeared glued back on the vials.  Hospital records revealed that Marshall checked out doses of fentanyl for patients 14 times from in July and August of 2020 but then canceled the transactions and purportedly returned the fentanyl back into the interventional radiology unit’s inventory. FDA laboratory examination of the vials with the glued caps revealed needle punctures consistent with tampering, and laboratory testing demonstrated that the vials were substantially diluted, containing 3% or less of the amount of reported fentanyl.

          On August 24, 2020, Marshall met with hospital representatives and admitted diverting fentanyl for her own use by removing vials of injectable fentanyl from the medication dispensing machines, extracting the fentanyl using syringes, replacing the medication with saline, gluing the plastic tampering caps back onto the vials, and returning the vials back into the unit’s medication dispensing machines. At a plea hearing before the United States District Judge Hala Y. Jarbou, Marshall acknowledged that by removing the fentanyl, refilling the vials with saline solution, and returning the vials to the hospital inventory, she acted with reckless disregard that a patient would be placed in danger of death or bodily injury and exhibited extreme indifference to such risk.

          U.S. Attorney Mark Totten stated, “Patients entering a hospital must have confidence they will receive the treatment they are promised.” He continued, “Marshall violated that trust and exposed vulnerable patients to possible infection and unnecessary pain and suffering. Today’s guilty plea brings us one step closer to accountability and sends a message to other would-be offenders that we will not sit back when they violate patients’ trust.”  

          “Patients rely on the knowledge that they will receive FDA-approved medications to manage their pain,” said Special Agent in Charge Lynda M. Burdelik, FDA Office of Criminal Investigations, Chicago Field Office. “We will continue to pursue and bring to justice healthcare professionals who jeopardize patients’ health by tampering with their pain medications.”

          Marshall’s sentencing is scheduled for September 21, 2022.  Marshall faces a maximum of 10 years in federal prison. The Court will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.  

          This case was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations.     

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Defendant made the calls on the way to the U.S. Capitol riot

          GRAND RAPIDS, MICHIGAN — Jonathan Joshua Munafo pleaded guilty today to communicating a threat in interstate commerce.

          According to court documents, Munafo, 35, originally of Massachusetts, called the Calhoun County, Michigan 911 dispatch line over 140 times on January 5, 2021. Munafo demanded to speak to a Deputy Sheriff or Sergeant about unspecified issues, but did not have an emergency to report. When the dispatcher refused and asked him to clear the line, Munafo repeatedly called back. He threatened her, “I’m gonna cut your throat. I’m gonna make you eat your f***ing nose.” He said after the “Insurrection Act,” he was “coming to your door first,” and said, “it’s going to go way worse for your family.”

          Cell phone location records revealed Munafo placed the calls from a truck stop in North Carolina. The next day (January 6, 2021), Munafo participated in the riot at the U.S. Capitol, according to a separate indictment returned by a federal grand jury in the District of Columbia.  In that case, Munafo is charged with forcibly assaulting an officer of the Capitol Police, among eight other charges. He will appear in the District of Columbia to face those charges after his sentencing in Grand Rapids.  Defendants are presumed innocent of pending charges unless proven guilty in a court of law where the government has the burden of proving guilt beyond a reasonable doubt.                                

          “We will not tolerate threats of this kind,” said U.S. Attorney Mark Totten. “Emergency dispatchers do critical work, under stressful circumstances, to keep the community safe. No one, especially front-line public servants, should face threats of death or other physical violence.”

          "Today, Jonathan Munafo admitted to repeatedly calling a Calhoun County dispatcher and threatening to kill her or harm her family,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “These threats were intended to intimidate and create fear in a public servant whose job is intensely stressful under the best of circumstances. This type of behavior cannot be tolerated, and the FBI will continue to investigate those who threaten our community with violence.”

          Munafo faces a maximum sentence of 5 years in prison. United States District Judge Janet T. Neff will determine his sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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          GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced that Adrian Romero Antunez (35), a Mexican national in the United States on a tourist visa, pled guilty to conspiracy to distribute five (5) kilograms or more of cocaine.  Romero Antunez was the final defendant to plead guilty in a transnational and interstate cocaine ring that centered around New Buffalo, Michigan resident Ivan Huerta Hernandez (33).  Through conduits in Mexico, Huerta Hernandez was supplied by sources located in Chicago, Illinois, including Romero Antunez.  Huerta Hernandez then distributed cocaine to dealers in West Michigan and Northern Indiana. 

          On the morning of November 3, 2021, approximately 90 federal, state, and local law enforcement officers executed arrest warrants and six search warrants in four judicial districts: the Western District of Michigan, the Northern District of Indiana, the Northern District of Illinois, and the Central District of Illinois.  Investigators seized over 1.5 kilograms of cocaine, approximately $100,000 in cash, six vehicles linked to cocaine trafficking, and two firearms.

          The men who have pled guilty to felony charges are listed below: 

Name

Residence

Age

Ivan Huerta Hernandez

New Buffalo, Michigan

33

Adrian Romero Antunez

Chicago, Illinois

35

Henry Shavar Nichols

Greenville, South Carolina

41

Marcus Jemel Johnson

Benton Harbor, Michigan

41

Juan Martinez Camarillo

Michigan City, Indiana

37

Donald James Rogers

New Buffalo, Michigan

62

Manuel Eudave

La Porte, Indiana

54

Santiago Cardenas

Michigan City, Indiana

41

          “The guilty pleas in this case represent a significant victory against a transnational drug trafficking conspiracy,” said U.S. Attorney Mark Totten.  “My office is committed to combatting large-scale traffickers who bring these poisons to the Western District of Michigan.  This prosecution demonstrates the power of pooling the resources of federal, state, and local governments.  Drug trafficking organizations do not recognize political boundaries and we must continue to work together to combat drug trafficking organizations across Michigan, the Midwest, and the United States.”

          For more information, please see the continuation in support of the criminal complaint available on the public docket.  United States v. Hernandez, et al., No. 21-MJ-551, ECF No. 1 (W.D. Mich.).   

          On May 23, 2022, the Honorable Paul L. Maloney, U.S. District Judge for the Western District of Michigan sentenced Nichols to 36 months imprisonment, Martinez Camarillo to 57 months, and Cardenas to one year of probation.  The following defendants are scheduled for sentencing on the following dates: Rogers on June 17, 2022, Johnson on June 21, 2022, Huerta Hernandez on July 21, 2022, and Romero Antunez on September 12, 2022. 

          The case was investigated and prosecuted as part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation that began in 2020 and has been led by the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), United States Marshals Service (USMS),  Immigration and Customs Enforcement (ICE), United States Postal Inspection Service (USPIS), Michigan State Police’s Southwest Enforcement Team (SWET), Berrien County Sheriff’s Department (BCSD), Pokagon Band Tribal Police, Michigan City Police Department, La Porte City Police Department, and the Cook County Sheriff Department.

          OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using an intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

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The United States has filed a lawsuit against The Prometheus Group (Prometheus), a New Hampshire manufacturer of pelvic muscle therapeutic systems and related rectal probes, and Richard Poore, its president and sole owner. The complaint, filed in the U.S. District Court for the Western District of Michigan, alleges that the defendants violated the False Claims Act by causing health care providers to bill Medicare for services in which the providers improperly re-used single-user rectal sensors and single-use catheters on multiple patients. The United States alleges that the reuse of these devices on multiple patients unnecessarily exposed vulnerable Medicare beneficiaries to the risks of serious bacterial, fungal and viral infections.

“Providers and suppliers who participate in federal health care programs are expected to maintain the highest standards of patient care,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold parties accountable for causing the use of unsafe procedures that may put patients’ health at risk.”

“The Medicare Program is designed to serve an already-vulnerable population,” said U.S. Attorney Mark Totten for the Western District of Michigan. “Device manufacturers must not train providers who bill Medicare for services to use devices in a way that fails to protect patient health.”

“By encouraging the improper reuse of medical devices for financial gain, this manufacturer significantly endangered the health and safety of patients,” said Special Agent in Charge Mario Pinto with the Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “HHS-OIG is committed to working with our law enforcement partners to hold accountable any medical device manufacturers who exploit federal health care programs and threaten the health and safety of beneficiaries.”

Prometheus manufactures and sells device systems for use in pelvic muscle rehabilitation (PMR), a non-surgical therapy to eliminate or reduce symptoms of pelvic floor disorders, including urinary and fecal incontinence. Specifically, Prometheus has manufactured and marketed the Pathway CTS 2000 Pelvic Floor Training System and the Morpheus System. Both systems required the use of a rectal pressure probe that is inserted into a patient’s rectum during therapy. Prometheus manufactured its own sensor for use with the Pathway System and encouraged its customers to use another company’s anorectal manometry catheter with the Morpheus System.

The U.S. Food and Drug Administration (FDA) cleared the Prometheus rectal pressure sensor to be used as a single-user device and the anorectal manometry catheter to be used as a single-use device. For example, the instructions for use identify the rectal pressure sensor as “a potential bio-hazard” and state: “This sensor is restricted for single person use only. Use by another person is strictly prohibited by Federal Regulations.” Similarly, the anorectal manometry catheter was cleared by the FDA as a disposable single-use device, with packaging that states: “Do not re-use.”

According to the United States’ complaint, the defendants knew of these restrictions, but for years encouraged and instructed health care providers to reuse the rectal pressure sensors and anorectal manometry catheters on multiple patients, using a glove or condom to cover the probes, as a way to reduce the overhead costs associated with Prometheus’s systems. This reuse, which exposed patients to unnecessary risk of infections, was not reasonable or necessary, and thus was ineligible for Medicare coverage. In addition to the safety risks, Prometheus allegedly made no attempt to determine if the probes worked effectively when re-used under those conditions. 

The lawsuit is captioned United States v. The Prometheus Group., et al., No. 1:22-CV-446 (W.D. Mich.), and is being handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Western District of Michigan. Lead counsel are Senior Trial Counsel Jay D. Majors and Assistant U.S. Attorney Andrew J. Hull.  Investigative support is being provided by HHS-OIG, FDA and FBI.   

The claims asserted in the United States’ complaint are allegations only, and there has been no determination of liability.

          GRAND RAPIDS, MICHIGAN – The United States has filed a lawsuit against The Prometheus Group (Prometheus), a New Hampshire manufacturer of pelvic muscle therapeutic systems and related rectal probes, and Richard Poore, its president and sole owner. The complaint, filed in the U.S. District Court for the Western District of Michigan, alleges that the defendants violated the False Claims Act by causing health care providers to bill Medicare for services in which the providers improperly re-used single-user rectal sensors and single-use catheters on multiple patients. The United States alleges that the reuse of these devices on multiple patients unnecessarily exposed vulnerable Medicare beneficiaries to the risks of serious bacterial, fungal and viral infections.

          “Providers and suppliers who participate in federal health care programs are expected to maintain the highest standards of patient care,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold parties accountable for causing the use of unsafe procedures that may put patients’ health at risk.”

          “The Medicare Program is designed to serve an already-vulnerable population,” said Mark Totten, United States Attorney for the Western District of Michigan. “Device manufacturers must not train providers who bill Medicare for services to use devices in a way that fails to protect patient health.”

          “By encouraging the improper reuse of medical devices for financial gain, this manufacturer significantly endangered the health and safety of patients,” said Special Agent in Charge Mario Pinto with the Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “HHS-OIG is committed to working with our law enforcement partners to hold accountable any medical device manufacturers who exploit Federal health care programs and threaten the health and safety of beneficiaries.”

          Prometheus manufactures and sells device systems for use in pelvic muscle rehabilitation (PMR), a non-surgical therapy to eliminate or reduce symptoms of pelvic floor disorders, including urinary and fecal incontinence. Specifically, Prometheus has manufactured and marketed the Pathway CTS 2000 Pelvic Floor Training System and the Morpheus System. Both systems required the use of a rectal pressure probe that is inserted into a patient’s rectum during therapy. Prometheus manufactured its own sensor for use with the Pathway System and encouraged its customers to use another company’s anorectal manometry catheter with the Morpheus System.

          The U.S. Food and Drug Administration (FDA) cleared the Prometheus rectal pressure sensor to be used as a single-user device and the anorectal manometry catheter to be used as a single-use device. For example, the instructions for use identify the rectal pressure sensor as “a potential bio-hazard” and state: “This sensor is restricted for single person use only. Use by another person is strictly prohibited by Federal Regulations.” Similarly, the anorectal manometry catheter was cleared by the FDA as a disposable single-use device, with packaging that states: “Do not re-use.”

          According to the United States’ complaint, the defendants knew of these restrictions, but for years encouraged and instructed health care providers to reuse the rectal pressure sensors and anorectal manometry catheters on multiple patients, using a glove or condom to cover the probes, as a way to reduce the overhead costs associated with Prometheus’s systems. This reuse, which exposed patients to unnecessary risk of infections, was not reasonable or necessary, and thus was ineligible for Medicare coverage. In addition to the safety risks, Prometheus allegedly made no attempt to determine if the probes worked effectively when re-used under those conditions.

          The lawsuit is captioned United States v. The Prometheus Group., et al., No. 1:22-CV-446 (W.D. Mich.) and is being handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Western District of Michigan. Lead counsel are Senior Trial Counsel Jay D. Majors and Assistant U.S. Attorney Andrew J. Hull. Investigative support is being provided by the Department of Health and Human Services, Office of Inspector General, the FDA, and the FBI.

The claims asserted in the United States’ complaint are allegations only, and there has been no determination of liability.

Note: View a copy of the complaint here. View a copy of the consent decree here

          GRAND RAPIDS, MICHIGAN— The United States has filed a complaint and a proposed consent decree that, if entered by a federal court in the Western District of Michigan, would allow Abbott Laboratories (Abbott) to resume manufacturing powdered infant formula at its Sturgis, Michigan, facility but also would require the company to take specific measures designed to increase safety and ensure compliance with the Federal Food, Drug, and Cosmetic Act (FDCA) and the U.S. Food and Drug Administration’s (FDA) Good Manufacturing Practice Requirements.

          “The actions we are announcing today will help to safely increase the supply of baby formula for families,” said Attorney General Merrick B. Garland. “The Justice Department will vigorously enforce the laws ensuring the safety of our food and other essential consumer products, and we will work alongside our partners across government to help make sure those products are available to the American people.”

          In a complaint filed May 16, the United States alleged that Abbott, Division Vice-President of Quality Assurance Lori J. Randall, Sturgis Director of Quality Keenan S. Gale, and Sturgis Site Director TJ Hathaway manufactured powdered infant formula under conditions and using practices that failed to comply with regulations designed to ensure the quality and safety of infant formula, including protection against the risk of contamination from bacteria such as Cronobacter sakazakii. The Cronobacter sakazakii bacteria can live in dry foods, such as powdered infant formulas, and can cause deadly sepsis or meningitis in infants. The complaint further alleged that FDA testing of environmental samples taken in February detected Cronobacter sakazakii in the defendants’ manufacturing facility.

          Abbott has agreed to resolve the complaint in a proposed consent decree of permanent injunction. Under the proposed consent decree, which must still be reviewed and entered by a federal court, Abbott must retain outside expert assistance to bring its facility into compliance with the FDCA and good manufacturing practice regulations. Among other things, the expert will assist Abbott, under FDA supervision, in the development of plans designed to reduce and control the risk of bacterial contamination, and will periodically evaluate Abbott’s compliance with the FDCA, regulations, and the consent decree. The proposed consent decree also follows a thorough FDA inspection of the Sturgis facility and ongoing efforts by Abbott to address observations made during that inspection. The proposed consent decree sets out what Abbott must do to resume safely manufacturing infant formula at the Sturgis facility, which will help to mitigate the shortage of infant formula while also protecting public health.

          “Federal laws regarding the safe manufacture of food, particularly food for infants, must be rigorously enforced,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The proposed consent decree underscores the Department’s commitment to protecting our most vulnerable citizens while also ensuring access to an essential product.”

          “Parents who feed their babies formula must have confidence these products are safe,” said U.S. Attorney Mark Totten for the Western District of Michigan. “This proposed consent decree aims to protect one of our most vulnerable populations. My office is fully committed to supporting FDA and working with its partners at the Consumer Protection Branch to ensure manufacturers in our district comply with FDA’s safety regulations.”

          “Today’s action means that Abbott Nutrition has agreed to address certain issues that the agency identified at their infant formula production facility in Michigan,” said FDA Commissioner Robert

          M. Califf, M.D. “The public should rest assured that the agency will do everything possible to continue ensuring that infant and other specialty formulas produced by the company meet the FDA’s safety and quality standards, which American consumers have come to expect and deserve. We recognize the hardships that parents and caregivers have faced in obtaining infant formula and the FDA is focused on boosting the availability of the country’s supply of these products, including new steps regarding importation. We are also taking a look at the supply of infant formulas developed by manufacturers across the country and around the world to determine if a reallocation of their distribution can be made to help get the right product to the right place, at the right time.”

          This proposed consent decree is part of the Department’s broader work to address the current infant formula shortage. As part of these efforts, Associate Attorney General Vanita Gupta sent a letter to state attorneys general today, urging them to use their state-law authorities to ensure that vulnerable families are not taken advantage of during this time, and encouraging them to contact the Department with any evidence of collusive price fixing, bid rigging, or market allocation. The Associate Attorney General’s letter can be found here:

          /media/1222801/dl?inline.

          This matter is being handled by Senior Litigation Counsels Donald R. Lorenzen and Christina Parascandola of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Andrew Hull for the Western District of Michigan, with the assistance of Senior Counsel Claudia Zuckerman of the FDA’s Office of the Chief Counsel.

          Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Michigan, visit its website at https://www.justice.gov/usao-wdmi.

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          KALAMAZOO, MICHIGAN – On May 10, 2022, U.S. District Judge Paul L. Maloney sentenced Mustafa Deville Reynolds, 24, of Grand Rapids, to 328 months (27 years and 4 months) in prison for distributing heroin and fentanyl that caused the deaths of two Grand Rapids men, announced U.S. Attorney Mark Totten. The two victims were 25 and 27 years old at the time of their deaths in August 2019.

          In the early morning hours of August 21, 2019, the victims were found by their roommates, unresponsive, just hours apart from one another. After initially being transported to the hospital, both men subsequently died from fentanyl and heroin toxicity. Detectives with the Grand Rapids Police Department (GRPD) found evidence on cell phones that showed in the evening of August 20, 2019, Reynolds sold the fatal drugs directly to one of the victims, and that Reynolds sold the fatal drugs through a middleman to the other victim. One week later, on August 27, 2019, Reynolds sold a mixture of heroin and fentanyl to an undercover GRPD detective. During the sale, Reynolds pointed to the drugs and told the detective, “Be careful with that one. Don’t do too much.” Other evidence recovered from cell phones showed that Reynolds referred to the drugs he sold as “fire,” and used other individuals to “test” the potency of the lethal substances.

          In January 2022, a jury found Reynolds guilty of all three crimes: distributing heroin and fentanyl that resulted in the deaths of the two victims, and distributing heroin and fentanyl to the undercover detective. According to evidence admitted at trial, the victims thought they were buying heroin, but the heroin was laced with, or was mostly fentanyl. Specifically, a forensic chemist with the Michigan State Police testified that one of the baggies of alleged heroin that Reynolds sold to the undercover detective was predominately fentanyl, which is a synthetic opioid 100 times more potent than morphine.  At sentencing, the U.S. Attorney’s Office argued that Reynolds’s comments to the undercover GRPD detective about the potency of the substance proved Reynolds knew he was selling deadly drugs, and therefore was deserving of a significant sentence.

          “Today’s sentence ensures accountability for the distribution of deadly drugs. Like the rest of the United States, Michigan remains in the midst of an opioid crisis. Individuals who order heroin are increasingly receiving fentanyl, a synthetic opioid that is cheaper, easier to produce, and often lethal,” said U.S. Attorney Totten. “The U.S. Attorney’s Office is committed to investigating and prosecuting these cases to ensure that drug dealers who cause death are brought to justice,” added Totten.

          “This sentence should serve notice to drug dealers that you will be held responsible for the lives you ruin and end. With the help of our law enforcement partners around the globe, we will continue investigating cases like these and follow the supply chain as far as necessary,” said Kent Kleinschmidt, Acting Special Agent in Charge of the Drug Enforcement Administration’s Detroit Division.

          “The illegal distribution of heroin and fentanyl continue to have devastating effects on our community,” said Grand Rapids Police Department Lieutenant Jonathan Wu.  “The sentencing of Mustafa Reynolds highlights the successful partnership between the Grand Rapids Police Department, the Drug Enforcement Administration, and the U.S. Attorney’s Office. We are thankful for the dedication and hard work of all the officers, detectives, agents, and attorneys that worked together to bring this case to a successful conclusion. We are committed to investigating and prosecuting those in our communities that profit off the addiction of others,” added Wu.

          The Grand Rapids Police Department Vice Unit and the Drug Enforcement Administration investigated this case, which was prosecuted by Assistant United States Attorneys Dan McGraw and Alexis Sanford.

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          May 11, 2022— In honor of National Police Week, United States Attorney Mark Totten recognizes the service and sacrifice of federal, state, local, and tribal law enforcement. This year, the week is observed Wednesday, May 11 through Tuesday, May 17, 2022.

          “This week, we gather to pay tribute to the law enforcement officers who sacrificed their lives in service to our country,” said Attorney General Garland. “We remember the courage with which they worked and lived. And we recommit ourselves to the mission to which they dedicated their lives. On behalf of a grateful Justice Department and a grateful nation, I extend my sincerest thanks and gratitude to the entire law enforcement community.”

          “Every day our law enforcement officers enter harm’s way to protect the communities they serve. Some have made the ultimate sacrifice,” said U.S. Attorney Mark Totten. “We owe an enormous debt of gratitude to these officers and their families for their singular commitment to protect the people they serve.”

          In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), 472 law enforcement officers died nationwide in the line of duty in 2021. Of that number, 319 succumbed to COVID-19. According to NLEOMF one officer died in the line of duty in the Western District of Michigan. The officers name will be added to the Law Enforcement Memorial in Washington, D.C.

          Additionally, according to 2021 statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 73 law enforcement officers who died in the line of duty in 2021 were killed as a result of felonious acts, whereas 56 died in accidents. Deaths resulting from felonious acts increased in 2021, rising more than 58 percent from the previous year. In 2021, unprovoked attacks1 were the cause of 24 deaths significantly outpacing all other line of duty deaths resulting from felony acts and reaching the highest annual total in over 30 years of reporting. Additional LEOKA statistics can be found on FBI’s Crime Data Explorer website for the LEOKA program.

1 An unprovoked attack is defined as an attack on an officer not prompted by official contact at the time of the incident between the officer and the offender. Source: Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program.

          The names of the 619 fallen officers added this year to the wall at the National Law Enforcement Officer Memorial were read on Friday, May 13, 2022, during a Candlelight Vigil in Washington, D.C.

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          GRAND RAPIDS, MICHIGAN – U.S. Attorney Mark Totten announced today that U.S. District Judge Hala Y. Jarbou sentenced Jaquari Trotter, age 21, and Gregory Rogers, age 22, both of Grand Rapids, Michigan, to 60 and 57 months, respectively, for shooting at a member of the United States Marshals Service Fugitive Task Force. Rogers also faced sentencing for separate offenses involving illegal firearm possession and drug trafficking. Judge Jarbou imposed a total combined sentence for Rogers of 177 months in prison.

          On February 4, 2020, Trotter and Rogers were outside a residence on Sherman Street SE in Grand Rapids when a member of the United States Marshals Service Fugitive Task Force drove by in an unmarked SUV. When the agent drove by a second time, Trotter and Rogers pulled out in front of the unmarked SUV and sped around a neighboring corner. Trotter had Rogers pull over sharply to the right side of the road and jumped out of the passenger door. Trotter then pulled a loaded 9mm handgun from his waistband and fired 11 shots at the agent’s vehicle before jumping back into the getaway car and speeding away with Rogers. The bullets Trotter fired pierced the agent’s SUV from the front bumper all the way to the rear door panel and also struck a nearby house.  Trotter and Rogers each pled guilty to this offense in January 2022 shortly before they were scheduled for trial.

          In sentencing Trotter and Rogers, Judge Jarbou emphasized the extremely serious nature of the men’s crimes. She noted that Trotter shot at the agent 11 times in the middle of a residential neighborhood, putting not only the agent’s life in jeopardy but also the lives of innocent civilians. She also focused on both men’s criminal histories and gang affiliations, remarking that, if released today, Trotter and Rogers would likely continue committing crimes.  

          “This shooting could have cost a law enforcement officer his life,” declared U.S. Attorney Mark Totten. “Trotter and Rogers acted without regard for the lethal results their actions could cause. These sentences reflect the violent and serious nature of the crimes committed and are an important step in ensuring the safety of our community.” 

          Kent County District Attorney Chris Becker echoed Totten’s sentiments, remarking that his office is “happy to work hand in hand with the U.S. Attorney’s Office to bring justice to the victim” of the shooting.

          “The use of violence against one law enforcement officer carrying out his sworn duty is an offense against every officer who works selflessly to keep our communities safe,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “When violent perpetrators target those whose duty it is to protect and serve, every resource of the FBI will be used to ensure they are brought to justice.” 

          “The U.S. Marshals Service is appreciative of the efforts of the U.S. Attorney’s Office and all the investigators involved in this case,” declared Joseph Guzman, Acting Chief Deputy of the U.S. Marshals Service.  “This was a serious attack against one of our Officers and we are thankful these individuals have been held accountable.”

          This case was investigated by the Federal Bureau of Investigation and the Grand Rapids Police Department, with important additional assistance provided by the United States Marshals Service and the Michigan State Police. This case was prosecuted by Assistant U.S. Attorney Stephanie M. Carowan and Special Assistant U.S. Attorney Blair Lachman, who also serves as a Deputy Prosecutor in Kent County. 

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Mark A. Totten

          GRAND RAPIDS, MI – Today Mark A. Totten was sworn in as the United States Attorney for the Western District of Michigan. President Biden nominated Totten on November 12, 2021, and the U.S. Senate confirmed him on April 27, 2022. Chief U.S. District Judge Robert J. Jonker administered the oath of office this morning at the federal courthouse in Grand Rapids.

          “I am honored to serve as the United States Attorney for the Western District of Michigan,” Totten said. “This office has a long history of securing justice and protecting the people of Michigan with diligence and integrity. I look forward to leading this outstanding team of dedicated attorneys and support staff and working with other partners at this important moment.”

          Totten was born and raised in Kalamazoo, Michigan, where he lives today. Most recently, he served as Chief Legal Counsel in the Executive Office of the Governor for the State of Michigan. Prior to entering government service, Totten was a law professor at Michigan State University from 2008-2018, where he taught criminal law and criminal procedure. From 2011-2013 he served part-time as a Special Assistant U.S. Attorney handling criminal appeals in the office he now leads. He was a judicial law clerk on the U.S. Court of Appeals for the D.C. Circuit and began his career as an attorney in the U.S. Department of Justice, Civil Appellate Staff, in Washington, D.C. Totten received his B.A. from Cedarville College and his law degree and a Ph.D. in ethics from Yale University.

          The U.S. Attorney is the chief federal law enforcement officer in the Western District of Michigan. The District covers 49 counties, including the western half of Michigan’s lower peninsula and the whole of the upper peninsula. The main office is in Grand Rapids, but the District also has staffed offices in Lansing and Marquette, and an unstaffed office in Kalamazoo. As U.S. Attorney, Totten will oversee a staff of 42 attorneys and 44 support staff.

          A formal investiture ceremony will follow at a future date.

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          GRAND RAPIDS, MICHIGAN - A man pleaded guilty to tax evasion arising from his near decade-long effort to prevent the IRS from collecting taxes he and his businesses owed.

          According to court documents, Scott Chappelle, 61, of Okemos and East Lansing, was an attorney and former CPA who operated Terra Management Company, Strathmore Development Company Michigan LLC, and Terra Holdings LLC, all of which were involved in real estate development and property management in the East Lansing area. As part of his guilty plea, Chappelle admitted he did not pay over to the IRS employment taxes withheld from the wages of the companies’ employees. When the IRS sought to collect the unpaid taxes, Chappelle made false statements to the agency about his and his companies’ assets and income, concealed his vacation house on Lake Michigan, and purchased real property in nominee names instead of his own. Chappelle also falsely told IRS employees he could not afford to pay his tax debts, when in reality he was contemporaneously using business bank accounts to pay for personal expenses such as mortgage payments on two houses and a condominium, college tuition for his children, personal credit card bills, life insurance premiums, car payments for himself and one of his children, and expenses associated with boats he owned.

          Chappelle also lied to IRS special agents who were investigating his misconduct. He falsely stated he had not purchased property since the IRS began collection activities, and he concealed the source of the funds used to pay for a mortgage on a condominium in East Lansing. During the criminal investigation, Chappelle also filed a false employment tax return for Terra Holdings LLC on which he claimed the company had no employees and paid no wages during the time period covered by the return. In fact, Chappelle knew the company had employees and paid wages during that period because he approved submissions to the company’s payroll provider.

          Chappelle further admitted to making false statements on a loan application when he refinanced the mortgage on his Lake Michigan vacation house in Harbor Springs.

          Chappelle is scheduled to be sentenced on August 2. He faces a maximum penalty of five years in prison for tax evasion. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

          Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Andrew B. Birge for the Western District of Michigan made the announcement.

          IRS-Criminal Investigation is investigating the case.

          Trial Attorney Melissa S. Siskind of the Tax Division and Assistant U.S. Attorney Timothy P. VerHey for the Western District of Michigan are prosecuting the case.

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          GRAND RAPIDS, MICHIGAN —U.S. Attorney Andrew Birge announced today that Joseph Favorite, 24, of Benton Harbor, was sentenced to serve 120 months in the Federal Bureau of Prisons for being a felon in possession of a firearm.  U.S. District Judge Jane M. Beckering also imposed a period of supervised release of 3 years to follow.  Both the 120 months’ incarceration and 3 years’ supervised release are the statutory maximum terms a judge can impose for a felon possessing a firearm. 

          Members of the FBI Safe Streets Task Force arrested Favorite on July 1, 2021, following an investigation into his illegal firearm possession and a search of his residence.  At the time, Favorite was a parole absconder and had an active warrant for assault with a deadly weapon stemming from a June 27, 2021, incident involving a firearm.  During the search of Favorite’s bedroom, investigators found a loaded 9mm pistol with 50-round drum magazine attached.  Favorite was prohibited from possessing the firearm because he was previously convicted in 2016 of assault to do great bodily harm and assault with a dangerous weapon.  Favorite pleaded guilty to being a felon in possession of a firearm on January 13, 2022.  In sentencing Favorite to 120 months’ custody, Judge Beckering expressed concern for Favorite’s “violent history” and “disturbing” conduct, and noted he contributed “to the escalating violence in Benton Harbor.”

          U.S. Attorney Birge said, “My office remains committed to supporting law enforcement task forces that collaborate to address the violent crime plaguing our communities—particularly gun violence.  We will continue to work together to identify and prosecute individuals responsible for driving violent crime in our communities to make neighborhoods safer for everyone.” 

          “For years, this defendant committed violence against the citizens of Benton Harbor and its surrounding communities with impunity,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan.  “I want to thank our partners in the Benton Harbor FBI Safe Streets Task Force for all of their hard work on this investigation and for their efforts to keep our communities safe.”

          This case was prosecuted by Assistant U.S. Attorney Lauren F. Biksacky and investigated by the Benton Harbor FBI Safe Streets Task Force. The Safe Streets Task Force includes law enforcement officers from the FBI, Michigan State Police, Berrien County Sheriff’s Department, Benton Harbor Department of Public Safety, Benton Township Police Department, Pokagon Band Tribal Police Department, and the Michigan Department of Corrections.

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          GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Jay David Soulliere, Jr., 28, of Grand Rapids, was sentenced to 51 months in prison by the Honorable Paul L. Maloney, United States District Judge.  In October, Soulliere pled guilty to conspiracy to commit identity theft and aggravated identity theft.  Soulliere was also sentenced to three years of supervised release following incarceration and ordered to pay more than $18,000 in restitution.  In handing down the sentence, the Court found that Soulliere abused a position of trust and had not accepted responsibility, among other findings.

          According to public records filed in the case, Soulliere was a Disaster Recovery Specialist for the Small Business Administration from September 2020 until March 2021.  His job responsibilities included assisting people applying for disaster-related loans.  In the fall of 2020, Soulliere stole from SBA’s computer system the personal information of two victims who had applied for loans.  Soulliere gave that information to a co-conspirator, Matthew Moore Vodak, Jr., who used it to commit various acts of identity theft, including buying a Land Rover with a fraudulent check and driver’s license, taking over a credit card, applying for loans and credit, and producing fake identification documents.  Soulliere also listed one of the victims as a member of his household in a bid to obtain state benefits.  During the offense and the prosecution, Soulliere repeatedly used methamphetamine and he absconded from a halfway house.  When he was arrested by federal agents, he had another person’s identification document in his possession and lied to agents about his identity.

          Vodak was earlier sentenced to 39 months in prison, two years of supervised release, and more than $18,000 in restitution for his role in the scheme.

          “Government employees are routinely entrusted with the public’s personal information, and they owe a duty of care to protect that information,” said U.S. Attorney Birge.  “This defendant thought his government job gave him permission to steal the identities of people already suffering the economic consequences of a pandemic.  We take insider threats seriously and will hold public servants accountable for abusing the public’s trust.”

          “Criminals who use their position within the government for financial gain not only threaten the stability of government agencies but undermine our laws,” said Special Agent in Charge James A. Tarasca of the FBI in Michigan.  “This case is another example of the FBI’s partnership with federal, state, and local law enforcement agencies to combat serious financial frauds.  I would like to thank the Small Business Administration - Office of Inspector General, Michigan State Police, and the Plymouth Township, Troy, and New York City Police Departments for their collaboration during this investigation.”   

          The FBI investigated the case with assistance from the SBA Office of Inspector General, the Troy Police Department, the Plymouth Township Police Department, the Michigan State Police, and the New York City Police Department.  Assistant U.S. Attorney Justin M. Presant handled the prosecution.

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          GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Douglas Arvin Horning, 56, of Cadillac, was sentenced to 20 months in prison for tax evasion by the Honorable Paul L. Maloney, United States District Judge.  He was also ordered to pay $977,983 in restitution and to serve three years on supervised release following incarceration.

          According to the plea agreement and other public records, prior to his guilty plea, Horning had not filed an individual tax return since 2008 or a corporate tax return since 2006 for his software company Perfect Professionals, Inc., doing business as Compass Technologies.  He had not paid any individual or corporate taxes during that time.  Horning also failed to pay all of the required “trust fund” taxes withheld from his employees’ paychecks.  Horning concealed income by routing it through a second company—even after that company was dissolved by the State of Michigan—failing to disclose the company’s bank account to the IRS when required to do so, and not including that income on the Forms W-2 he issued to himself through Perfect Professionals.  He likewise received unreported income by paying personal expenses using Perfect Professionals’ bank account. 

          “As Tax Day approaches, the Court’s sentence is an important reminder of the duty we as citizens and other taxpayers owe to each other and the government to file returns and pay legally required taxes,” said U.S. Attorney Birge. “Concealing assets from the IRS or otherwise evading these obligations can and will result in criminal prosecution.”

          “The license to run a business is not a license to avoid paying taxes or collecting your employees’ withholding and not paying it over to the IRS,” said Special Agent in Charge Sarah Kull, IRS Criminal Investigation, Detroit Field Office.  “Horning’s misconduct, hiding income and blatant disregard of tax laws, cheats all Americans, who pay their fair share of taxes.”

          This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Justin M. Presant.

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