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US Department of Justice Terrence Berg United States

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					                                                  U.S. Department of Justice

                                                  Terrence Berg
                                                  United States Attorney
                                                  Eastern District of Michigan

                                                  Suite 2001
                                                  211 West Fort Street
                                                  Detroit, Michigan 48226-3277

For Immediate Release:
Contact: Gina Balaya (313) 226-9758
         Rich Isaacson - DEA (313) 234-4310


June 4, 2009

Event: Guilty Verdict
Defendant: Adarus Mazio Black


                 DETROIT MAN CONVICTED ON DRUG CONSPIRACY
                                  AND ESCAPE CHARGES
Adarus Mazio Black, 38, formerly of Detroit, Michigan, was found guilty in two separate trials
on charges of conspiracy to possess with intent to distribute more than five kilograms of
cocaine and more than one thousand kilograms of marijuana and escape from federal custody,
United States Attorney Terrence Berg announced today.


          Mr. Berg was joined in the announcement by Special Agent in Charge Robert Corso,
Drug Enforcement Administration and Marshal Robert Grubbs, U.S. Marshals Service, Detroit
Office.


          The trial on the drug charges began on May 19, 2009 before United States District
Judge Marianne O. Battani. The jury deliberated for less than 2 hours before returning the
guilty verdict on Friday, May 29, 2009.    The trial on the escape charge began on June 1,
2009 and concluded today with the jury deliberating one hour before returning the guilty
verdict.


       United States Attorney Terrence Berg said, “This case shows the extreme and ugly
measures drug traffickers will take to perpetuate their crimes and avoid getting caught – from
killing witnesses and cohorts, to undergoing radical plastic surgery, to jumping out of prison
vans onto I-94. These measures were not enough to keep Adarus Mazio Black from being
brought to justice, however, thanks to the tenacious and untiring work of the DEA and the
prosecutors of this case.”


       DEA Special Agent in Charge Robert L. Corso stated, “This is an important conviction,
and is a prime example of the level of violator that is targeted by the DEA. Not only was this
man a major drug dealer and responsible for multiple murders, but there were no limits to what
he would do to avoid arrest and capture. This investigation took an abundance of patience
and due diligence in order to come to this successful outcome, and metropolitan Detroit is a
safer place with Adarus Mazio Black behind bars, hopefully for a very long time.”


       The evidence at the drug conspiracy trial showed that the defendant trafficked in
hundreds of kilograms of cocaine and thousands of pounds of marijuana, generating millions of
dollars in drug proceeds. On April 25, 2007, authorities seized over $2.5 million of Black’s drug
proceeds in Tucson, Arizona.


       The evidence at trial also showed that Black committed three murders of individuals he
feared could testify against him. Federal authorities obtained an undercover video of a meeting
between Black’s partner and an informant, during which Black’s partner stated that Black had
killed a man because the man “had seen [Black’s] face.”


       After the commission of these murders in Detroit, Black moved his drug operation to
Tucson, but continued to ship thousands of pounds of marijuana to Detroit for distribution.
Black then shipped millions of dollars back to Arizona in the undercarriages of buses carrying
people he paid to pose as passengers.
       Black used various aliases and obtained fraudulent drivers licenses in various names in
Michigan, Arizona, and California. When Black left Detroit after he commissioned the murder of
a federal informant in 2005, he went to Mexico and underwent a series of plastic surgeries to
change the appearance of his face to avoid arrest and prosecution. Black also had his
fingerprints surgically removed in Mexico to make his identification by law enforcement
impossible. Black paid the surgeon in cash.


       Black was arrested posing as one “Kevin Collins,” in Corona, California, on October 25,
2007, by a Deputy U.S. Marshal from Detroit. Seized from Black’s hideout were $20,000 cash
and a money counting machine.


       The evidence at the trial on the escape charges, which concluded today, showed that
on April 8, 2008, while in pretrial custody on his federal drug charges, Black leapt from a
moving prisoner transport vehicle, while handcuffed and shackled, on Interstate I-94 and
attempted to escape from the U.S. Marshals. At trial, Black testified and claimed that he
jumped from the van because he was under duress and feared that U.S. Marshals were
plotting to kill him.


       Black is scheduled to be sentenced on September 8, 2009 at 3:00 pm.


       Black faces a mandatory minimum term of imprisonment of 20 years up to life on the
drug charges and up to five years imprisonment on the escape charge, to be served
consecutively. The actual sentence imposed if convicted would depend on a number of factors,
including the defendant’s criminal record (if any), and advisory Sentencing Guidelines.


       The case was investigated by special agents of the DEA Drug Homicide Task Force and
deputies from the U.S. Marshals Service. The case was prosecuted by Assistant U.S.
Attorneys J. Michael Buckley and Daniel Lemisch.
                                                U.S. Department of Justice

                                                Terrence Berg
                                                United States Attorney
                                                Eastern District of Michigan

                                                Suite 2001
                                                211 West Fort Street
                                                Detroit, Michigan 48226-3277

For Immediate Release:
Contact: 	Gina Balaya (313) 226-9758
          Sandra Berchtold - FBI (313) 237-4218
          Rich Isaacson - DEA (313) 234-4310

June 4, 2009

Event: Indictment
Defendant: George Williams et al


                 GRAND JURY CHARGES ELEVEN IN CONNECTION WITH

               HEALTH CARE BUSINESS FOR DISTRIBUTING MILLIONS IN 

                PRESCRIPTION PAIN KILLERS WHILE BILLING MEDICARE

                  Over $ 220,000 in Cash and Assets Seized in Forfeiture
      An Indictment was unsealed today charging a medical business owner, several of his
employees and other individuals with conspiring to unlawfully distribute prescription drug
controlled substances, including the Schedule II prescription drug OxyContin (oxycodone), and
committing Health Care Fraud, United States Attorney Terrence Berg announced today.


      Mr. Berg was joined in the announcement by Special Agent in Charge Robert Corso,
Drug Enforcement Administration, Detroit Field Division and Special Agent in Charge Andrew
G. Arena, Federal Bureau of Investigation, Detroit Field Division.


       The Indictment charges that between January of 2007 and December of 2008,
GEORGE WILLIAMS organized and operated a purported health care business under the
name Quick Response Medical Professionals, P.C. (QRMP). “Patients” were recruited for
doctor visits, but the purpose of the doctor visit was not to obtain legitimate medical treatment.
Instead, the patients were paid up to $220 cash per visit to obtain prescriptions for drugs with a
high street value. The prescriptions would not be kept by the “patients,” but would be retained
by QRMP employees, who would eventually fill the prescriptions at cooperating pharmacies
and then sell the drugs on the illegal street market. QRMP employees would fraudulently bill
Medicare for the unnecessary doctor visit, as well as unnecessary medical tests. In this
scheme, the defendants obtained more than 200,000, dosage units of the potent pain killer
OxyContin, valued at over $5 million on the retail market. Furthermore, as a result of the
defendants’ illegal conduct, Medicare was billed over $800,000, in 2008 alone, resulting in
payments of over $480,000 to QRMP. The Indictment seeks forfeiture of proceeds obtained,
directly or indirectly, from these offenses.


       United States Attorney Terrence Berg said, “The indictment exposes a highly organized
and sophisticated scheme to obtain millions of dollars-worth of potent prescription pain killers,
sell them on the street, and stick the U.S. taxpayer with the bill by illegally charging Medicare.
Fortunately, a thorough-going investigation by the DEA and the FBI has uncovered this
scheme and the process of justice has now begun. We will continue to pursue this case in
every direction to prosecute those responsible for this operation.”


       Special Agent in Charge of the Drug Enforcement Administration’s Detroit Field Division,
Robert Corso stated, “Addressing the problem of the diversion and abuse of controlled
pharmaceuticals is a top priority of the DEA and our partners in law enforcement. The
individuals arrested today were part of a conspiracy responsible for distributing millions of
dosage units of addictive prescription drugs across southeast Michigan, and as far away as
Alabama and Kentucky. Oxycontin, is an opiate painkiller, and when it is misused, it is every
bit as addictive and dangerous as heroin. Our community is safer today with the arrests of
these individuals and the closure of their illegal pill distribution network.”


       Special Agent in Charge Arena stated, "The Medicare Beneficiaries' participation in
Healthcare fraud schemes is a small part of the larger scheme plaguing the Detroit
Metropolitan area. The FBI will continue to aggressively investigate these cases and work
together with our DEA and HHS-OIG partners in disrupting and dismantling such
organizations."


      Named in the Indictment were the following individuals:


             GEORGE WILLIAMS, age 51, of Detroit

             BRANDON WILLIAMS, age 26, of Detroit

             NANCY WILLIAMS, age 37, of Detroit

             YOLANDO YOUNG, age 48, of Detroit

             ERNEST LARRY ADAMS, age 62, of Detroit

             WEBB SMITH, age 60, of Detroit

             NEIL CHAPPLE, age 37, of Louisville, Kentucky

             GREGORY PALMER, age 36, of Detroit

             NATHANIEL DARRYL WILLIAMS, age 52, of Detroit

             ANTHONY RICHARDSON, age 52, of Detroit

             KATRINA LYONS, age 39, of Birmingham, Alabama



      On December 2, 2008, ten federal criminal search warrants that were executed in aid of
this investigation. The execution of those warrants resulted in the seizure of the controlled
substances OxyContin, Xanax, Lortab, Codeine based cough syrups, a small amount of heroin
and heroin packaging materials. Asset forfeiture seizure warrants were executed on
December 2, 2008. The execution of these warrants resulted in the seizure of over $160,000
in cash and funds on deposit at various banks. In addition, automobiles and other items,
valued in excess of $60,000, were seized for forfeiture purposes. The searches were
conducted by agents and investigators of the United States Drug Enforcement Administration
and the Federal Bureau of Investigation, who were aided by local law enforcement agencies.


      Most of the defendants are scheduled to appear before a United States Magistrate
Judge in Detroit at 1:00 p.m. today for an initial appearance on these charges.
       A conviction of the controlled substance conspiracy offense carries a maximum penalty
of 20 years in prison or a $1 million fine, or both. A conviction of the Health Care Fraud
offense carries a maximum penalty of 10 years in prison or a $250,000 fine, or both. A
conviction of making unlawful payments to the Medicare beneficiaries (patients) carries a
maximum penalty of 5 years in prison or a $250,000 fine, or both. Any sentence will ultimately
be imposed under the United States Sentence Guidelines according to the nature of the
offense and the criminal background, if any, of the defendant.


       An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a
fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This is an ongoing investigation that is expected to involve additional individuals.


       The case is being investigated by special agents of the DEA, FBI and HHS, as well as
diversion investigators of the DEA. The case is being prosecuted by Assistant U.S. Attorneys
Wayne Pratt, Michael Riordan and Philip Ross.
                                                U.S. Department of Justice

                                                Terrence Berg
                                                United States Attorney
                                                Eastern District of Michigan

                                                Suite 2001
                                                211 West Fort Street
                                                Detroit, Michigan 48226-3277

For Immediate Release:
Contact: Gina Balaya (313) 226-9758


June 8, 2009

Event: Guilty Plea
Defendant: Karl Kado


    FORMER COBO CIVIC CENTER CONTRACTOR PLEADS GUILTY TO
             MAKING FALSE STATEMENTS ON HIS TAX RETURNS
Karl Kado, 68, of West Bloomfield, pleaded guilty today to one count of making false
statements on his tax returns before United States District Judge Marianne O. Battani, United
States Attorney Terrence Berg announced.


      Berg was joined in the announcement by Andrew G. Arena, Special Agent In Charge of
the Detroit Field Office of the Federal Bureau of Investigation and Maurice Aouate, Special
Agent in Charge of the Detroit Field Office of the Internal Revenue Service.


      Kado is the owner of Metro Services Organization, Inc., which held exclusive electrical
and janitorial contracts at Cobo Hall. Kado’s guilty plea is based on his and his company’s
failure to declare approximately $270,000 in cash income from 2002 and 2003. The cash was
generated by Rachel’s Corner, Kado’s sundry store in Cobo Hall. One of the reasons that
Kado did not declare the cash income was that he used it to make illegal payments to former
Cobo Civic Center Director Efstathios Louis Pavledes and other persons, including another city
official, in connection with his exclusive contracts at Cobo Hall.


       The tax charge carries a maximum sentence of 3 years in federal prison and a fine of up
to $250,000.


       United States Attorney Berg said, “Public corruption is among this office’s highest
priorities. We will not only hold those public officials accountable who accept bribes, we will
pursue those who offer and pay the bribes. Both the bribe giver and the bribe receiver
undermine the integrity of government.”


       "Income derived from any source, cash or otherwise, must be honestly reported on tax
returns," said IRS Criminal Investigation Special Agent in Charge Maurice Aouate. "We should
not expect the honest taxpayer to foot the bill for those who hide income from the IRS."


       The investigation of this case was conducted by the Federal Bureau of Investigation and
the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney R.
Michael Bullotta and Assistant U.S. Attorney Mark D. Chutkow.
                                                  U.S. Department of Justice

                                                  Terrence Berg
                                                  United States Attorney
                                                  Eastern District of Michigan

                                                  Suite 2001
                                                  211 West Fort Street
                                                  Detroit, Michigan 48226-3277

For Immediate Release:
Contact: Gina Balaya (313) 226-9758
         Mark Meyerand - USSS (313) 226-1852

June 9, 2009

Event: Guilty Plea
Defendant: Valdez Andrews and Stanley Bryanch


     FINAL TWO DEFENDANTS CHARGED IN IDENTITY THEFT SCHEME
                                       PLEAD GUILTY
Valdez Andrews, 35 of Southfield, and Stanley Bryanch, 32 of Canton, pleaded guilty today for
their role in an identity theft scheme, announced United States Attorney Terrence Berg.


       Mr. Berg was joined in the announcement by William Callahan, Special Agent in
Charge, United States Secret Service, Detroit Field Office.


       Co-defendants Dontrell Jones , 31, of Detroit, Ashley Walker, 32, of Detroit, and Tamara
Walker, 34, of Redford Township have previously pleaded guilty for their roles.


       As alleged in the indictment, the defendants devised a scheme to defraud T-Mobile
USA, Inc. (“T-Mobile”), Hewlett Packard Corporation (“HP”), and HSBC, a foreign financial
institution. As part of the scheme the defendants would illegally access confidential data of T-
Mobile, allowing them to steal the identities of real persons with favorable credit histories.
Defendants would then obtain credit or loans from HSBC in the names of the persons whose
identities were stolen and use HSBC’s credit to purchase computers and electronics
equipment from HP. The defendants would have the electronics equipment shipped to
addresses in the Detroit area which they controlled and retrieve the electronics equipment and
sell it, at a steep discount, to third parties, thereafter leaving the persons whose identities were
stolen with outstanding debts to HSBC, HP without its merchandise and HSBC without
payment.


       The scheme involved a loss to HP or more than $500,000. And it involved the theft of
identities of more than 200 persons residing in Arizona, California, Florida, Georgia, Illinois,
Indiana, Louisiana, Michigan, Minnesota, Missouri, New York, Ohio, Tennessee, Texas, West
Virginia, and Wisconsin.


       Valdez Andrews and Stanley Bryanch both pleaded guilty today to one count of mail
fraud and one count of aggravated identity theft before United States District Judge David M.
Lawson. Andrews is scheduled to be sentenced on September 15, 2009 and Bryanch is
scheduled to be sentenced on September 9, 2009.


       Dontrell Jones and Tamara Walker each pleaded guilty to one count of mail fraud on
May 12, 2009 and are scheduled to be sentenced on August 26, 2009. Ashley Walker pleaded
guilty to one count of mail fraud and one count of aggravated identity theft on May 27, 2009
and is scheduled to be sentenced on September 10, 2009.


       U.S. Attorney Berg stated, “This ID theft ring stole the good credit histories, and
damaged the credit-worthiness, of victims in Michigan and 15 other states. This creates a
huge problem, not only for the law-abiding individuals whose credit is damaged (and must be
repaired), but also for companies such as HP and HSBC, which are victimized when the
identity information is used to buy products which are not paid for.”


       This case was investigated by agents of the United States Secret Service and is being
prosecuted by Assistant U.S. Attorney Christopher Varner.
                                                 U.S. Department of Justice

                                                 Terrence Berg
                                                 United States Attorney
                                                 Eastern District of Michigan

                                                 Suite 2001
                                                 211 West Fort Street
                                                 Detroit, Michigan 48226-3277

For Immediate Release:

Contact: Gina Balaya (313) 226-9758


June 9, 2009


Event: Sentenced
Defendant: Najib Shemami


                    STERLING HEIGHTS MAN SENTENCED FOR
            ACTING AS AGENT FOR FORMER IRAQI GOVERNMENT
A Sterling Heights man was sentenced today to 46 months’ imprisonment for providing military
information to the Iraqi Intelligence Service under the government of Saddam Hussein, United
States Attorney Terrence Berg announced.
       Berg was joined in the announcement by Andrew G. Arena, FBI Special Agent in
Charge.
       Najib Shemami, 61, of Sterling Heights, was sentenced by Judge Nancy G. Edmunds.
Shemami had pleaded guilty in January to an indictment charging him with violating the
International Emergency Economic Powers Act.
       According to documents filed in court, Shemami traveled to Iraq and met with officers of
the Iraqi Intelligence Service in September, November and December 2002. Shemami
reported information relating to the activities of Iraqi expatriates in the United States who were
opposed to Saddam Hussein, potential candidates for political office in Iraq, and U.S. and
Turkish military activities he had observed in Turkey before the U.S. entry into Iraq in 2003.
       United States Attorney Berg stated, "Reporting to a foreign intelligence agency on the
activities of Iraqis living in the United States clearly puts those individuals and their families at
risk. Providing military information on the eve of war risks grave harm to our troops and
national security. We must always be vigilant in protecting our country from foreign
intelligence agencies.”
       The court rejected the defendant’s argument that he had acted under duress, and found
that his reporting to the Iraqi Intelligence Service was instead his “cost of doing business” as a
smuggler of goods and money into Iraq during a time when trade with Iraq was prohibited by
U.S. law.
       The case was investigated by Special Agents of the FBI.
                                               U.S. Department of Justice

                                               Terrence Berg
                                               United States Attorney
                                               Eastern District of Michigan

                                               Suite 2001
                                               211 West Fort Street
                                               Detroit, Michigan 48226-3277

For Immediate Release:
Contact: Gina Balaya (313) 226-9758
         Khaalid Walls - ICE (313) 226-0726

June 11, 2009

Event: Sentenced
Defendant: Nazeer Hamadneh et al


       LAST OF FOUR DEFENDANTS IS SENTENCED TO TWO YEARS’

                                     IMPRISONMENT

         IN PHONY COLLEGE TRANSCRIPT, STUDENT VISA SCHEME

A Dearborn resident who submitted phony college transcripts to in order to get bogus transfer
credits, to get students into graduate and medical school programs, and who helped foreign
students obtain U.S. student visas based on false documents was sentenced to two years in
federal prison today, United States Attorney Terrence Berg announced.


      Berg was joined in the announcement by Andrew G. Arena, Special Agent in Charge of
the FBI and Brian Moskowitz, Special Agent in Charge of Immigration and Customs
Enforcement.


      Nazeer Hamadneh, 40, of Dearborn, Michigan was sentenced today to 24 months in
prison by United States District Judge Lawrence P. Zatkoff in Port Huron, Michigan.
       According to court records, Hamadneh pleaded guilty on March 10, 2009 to Conspiracy
to Commit Mail Fraud and Visa Fraud. Co-defendants Abbas Obeid aka Adam Obeid, 34, of
Ontario, Canada, Roni Aoub, 27, of Southfield, and Majed Mamo, 40, of Wixom, Michigan all
pleaded guilty to conspiracy to commit mail fraud. Abbas Obeid also pled guilty to conspiracy
to commit visa fraud. All were given sentences ranging from probation to 6 months in prison.


       According to the indictment filed in this case, during August 2000 and continuing
through August 2008, Hamadneh and his co-defendants conspired to defraud educational
institutions such as Lawrence Technological University in Southfield and Madonna University
in Livonia by submitting fraudulent undergraduate transcripts so that individuals, who paid a
fee to the conspirators, would fraudulently obtain transfer credits from those institutions. These
credits were applied toward undergraduate degrees. Fraudulent transcripts were also
submitted so that individuals would be accepted for enrollment in graduate programs. The
indictment alleges that, in exchange for money, the conspirators submitted fraudulent
undergraduate transcripts to medical schools located in the Carribean and Belize on behalf of
students who otherwise had insufficient undergraduate credits to enter medical school. The
indictment alleges that as a result of the defendants’ actions, otherwise unqualified students
were admitted to medical school based on the submission of fraudulent undergraduate
transcripts.


       In addition, the indictment alleges that defendants Nazeer Hamadneh and Abbas Obeid
conspired to submit and submitted fraudulent documents on behalf of foreign students in order
to obtain student visas. The indictment further alleges that defendants Nazeer Hamadneh and
Majed Mamo tampered with witnesses in an effort to prevent witnesses from providing truthful
information to law enforcement.


       United States Attorney Terrence Berg said, "The whole of society is victimized by a
scheme that allows unqualified persons to pay for phony transcripts and college credits that
will get them into a graduate or medical school where they do not belong. Of greater concern
is any scheme that permits student visas to be obtained under false pretenses. We will be
vigilant to protect against the abuses demonstrated in this case.”
       "Individuals who buy and sell fraudulent college credits not only cheat the educational
system; but when used for medical school admissions may endanger public health.
Additionally, this undermines the student visa program by allowing individuals into this country
who fail to follow through on their obligation to continue their higher education," said Andrew G.
Arena, Special Agent in Charge of the FBI Detroit Field Office.


       “This sentence reflects the serious nature of these crimes. Individuals who gain entry
into the United States and into a college or university through fraud undermine the vetting
process and could put the public at risk" said Brian M. Moskowitz, Special Agent in Charge of
the ICE Office of Investigations for Michigan and Ohio. "ICE will continue to work with our
partners to close this vulnerability."


       The investigation of this case has been conducted by the Federal Bureau of
Investigation and Immigration and Customs Enforcement. This case is being prosecuted by
Assistant U.S. Attorney Cathleen Corken.
                                                  U.S. Department of Justice

                                                  Terrence Berg
                                                  United States Attorney
                                                  Eastern District of Michigan

                                                  Suite 2001
                                                  211 West Fort Street
                                                  Detroit, Michigan 48226-3277

For Immediate Release:
Contact: Gina Balaya (313) 226-9758
         Stephen Moore - IRS (313) 234-2410

June 12, 2009

Event: Sentenced
Defendant: Peter Arndt


                Gaylord Appraisal Business Owner Sentenced for
                                  Filing a False Tax Return
Peter Arndt, 53, of Gaylord, Michigan, was sentenced to serve one year and one day in prison
after having pleaded guilty to willfully filing a false federal income tax return, signed under
penalty of perjury, announced United States Attorney Terrence Berg. Following his release
from prison, Arndt will be placed on a one-year term of supervised release. The court also
ordered Arndt to pay restitution to the IRS in the amount of $117,433.00. Arndt was allowed
to remain free on bond pending designation by the Bureau of Prisons of an institution where he
will self-report to serve his sentence.


       Mr. Berg was joined in an announcement by Special Agent in Charge Maurice M.
Aouate, Internal Revenue Service Criminal Investigation.


       According to court records, during 1996 through 2003, Arndt was self-employed as a
real estate appraiser, earning substantial income. During those years, he failed to file his
federal income tax returns. In 2004, as part of divorce proceedings, he was directed to submit
his tax returns. He prepared, but deliberately failed to advise the return preparer of the full
amount of his gross income from his real estate appraisal business, materially understanding
his income. During these years, the tax loss to the Internal Revenue Service totaled over
$117,000.


       United States Attorney Berg stated, "Our system depends on the voluntary compliance
of citizens with our shared responsibility to pay taxes. Prosecution of individuals who
intentionally and willfully file false tax returns is a vital element in maintaining public confidence
in our tax system."


       "IRS Criminal Investigation directs its efforts at the portion of American taxpayers who
willfully and intentionally violate their known legal duty to file accurate income tax returns," said
Aouate. "Failing to do so, undermines the integrity of our system of taxation."


       United States Attorney Berg thanked the special agents from IRS Criminal Investigation
for their investigation of the case. The case was prosecuted by Assistant United States
Attorney Robert W. Haviland.
                                                U.S. Department of Justice

                                                Terrence Berg
                                                United States Attorney
                                                Eastern District of Michigan

                                                Suite 2001
                                                211 West Fort Street
                                                Detroit, Michigan 48226-3277

For Immediate Release:

Contact: Gina Balaya (313) 226-9758


June 12, 2009


Event: Sentenced
Defendant: Dennis Delaney


         NORTHVILLE MAN SENTENCED FOR CHILD PORNOGRAPHY
                         MANUFACTURE AND DISTRIBUTION
Dennis Delaney, 38 of Northville, Michigan, was sentenced yesterday in federal court to 25
years in federal prison for his convictions on charges of manufacturing, distribution and
possession of child pornography, United States Attorney Terrence Berg announced.


      Mr. Berg was joined in the announcement by William Callahan, Special Agent in
Charge, United States Secret Service, Detroit Division.


       Delaney was convicted on November 20, 2008, following a two-week jury trial before
the Honorable Denise Page Hood. Judge Hood sentenced the defendant to 25 years in
federal prison to be served consecutive to his sentence of 4 to 20 years for use of computer to
commit a crime in Macomb County Circuit Court. Delaney’s term of incarceration will be
followed by 10 years of supervised release.


      Testimony during the trial revealed that Delaney met and developed a relationship with
a 12- year-old girl via the Internet from 2002 through 2004. In 2004, they met in person and
Delaney took sexually explicit photos of the minor girl. Between 2004 and 2006, Delaney
distributed the photos, along with other Internet-obtained child pornographic images from his
Yahoo! accounts.


       Delaney was arrested in Macomb County by the Macomb County Computer
Enforcement Team on November 1, 2007, for related state computer solicitation charges. A
subsequent search of his home disclosed the images of the victim and additional child sexually
exploitive images on his computer and compact discs.


       A federal jury listened to testimony over a two-week period before returning a verdict of
guilty on all counts after about two hours of deliberation.


       United States Attorney Terrence Berg said , “Those who would use the Internet as a
tool to lure, meet with, and sexually exploit children, and then scatter the images of their abuse
across cyberspace, should consider this case and the 25-year prison sentence imposed today.
This case is a good example of the fine outcome of the cooperative efforts between state and
federal law enforcement through our Project Safe Child initiative. ”


       Berg praised the work of the Detroit Office of the Secret Service, the Michigan Crimes
Against Children Task Force and the Macomb Area Computer Enforcement Team under
Sheriff Mark Hackel and Sgt. Tina Old. Their dedication and skill led to the identification and
apprehension of a dangerous individual. These agencies consistently demonstrate
professionalism and dedication in their aggressive and thorough investigation of these cases.


       Assistant United States Attorneys Eaton Brown and John O’Brien prosecuted the case
for the United States.
                                                U.S. Department of Justice

                                                Terrence Berg
                                                United States Attorney
                                                Eastern District of Michigan

                                                Suite 2001
                                                211 West Fort Street
                                                Detroit, Michigan 48226-3277

For Immediate Release:

Contact: Gina Balaya (313) 226-9758


June 12, 2009


Event: Guilty Plea
Defendant: Kevin Rucinski


Roscommon Man Sentenced for Illegal Importation of Endangered Species
Kevin Rucinski, 49, was sentenced to six months home confinement with a tether as part of an
18 month term of probation as a resulting from his guilty plea to a violation of the Endangered
Species Act, United States Attorney Terrence Berg announced.


      Rucinski was sentenced yesterday by United States District Judge Thomas Ludington in
Bay City, Michigan. Judge Ludington also ordered Rucinski to pay restitution in the amount of
$5,000, and a fine of $15,000 to be credited to the Lacey Act Reward Account.


      Information presented to the court at the time of the plea established that in January of
2006, a package sent from Hong Kong and addressed to Kevin Rucinski at his dental office in
Roscommon, Michigan, was intercepted at a United Parcel Service hub facility in the United
States. The label on the package indicated that the package contained stationery. Inspection
of the package by the U.S. Fish and Wildlife Service (USFWS) revealed that the package
contained dried butterflies. An agent of the USFWS personally contacted the defendant,
explained that importation of the butterflies was a violation of the Endangered Species Act,
issued a violation notice to Rucinski, and directed the defendant to a website where he could
learn about the laws and regulations governing the importation and exportation of fish and
wildlife. Rucinski paid the fine for the violation notice and forfeited the contents of the
intercepted package.


       Nevertheless, Rucinski continued to buy and import dried insects, including butterflies
listed in the Convention on International Trade in Endangered Species of Wild Fauna or Flora,
and also spiders, beetles, and mollusks shells. Between October of 2005 and November of
2006, he made over a 1,000 successful bids for such items at auction on eBay, mostly by
sellers from outside of the United States. At times Rucinski purchased lots of 600 specimens
of a few butterfly species; at other times he paid $150 for a single, dried butterfly. He received
imported shipments of those items on a weekly basis, if not more frequently, at his office
without filing a Declaration for Importation or Exportation of Fish or Wildlife (Form 3-177) with
the USFWS, nor obtaining an Import/Export License from the Service. Though Rucinski paid
over $15,000 for the wildlife in those shipments, he evaded the $55 per package importation
fee, as well as the then $100 license fee, at a cost to the United States of over $5,000.


       The United States Fish and Wildlife Service is the primary federal agency charged with
enforcing the provisions of the Endangered Species Act (ESA). That Act protects endangered
and threatened animals and plants, and their habitats.


       Additionally, in an effort to monitor the global trade in wildlife, the ESA requires that all
wildlife and wildlife products are declared when imported to, or exported from the United
States.


       U.S. Attorney Berg said, “The Endangered Species Act is not limited to the importation
of endangered and threatened wildlife and plants, but rather applies to all wildlife and plants
imported into the United States. The declaration requirement serves multiple purposes,
among which are detecting illicit trafficking in endangered and threatened species, and
protecting the United States from the introduction of harmful species. I commend the agents of
the Fish and Wildlife Service for their work on this case.”
      This case was investigated by agent of the Fish and Wildlife Service and prosecuted by
Assistant United States Attorney Janet Parker.


      For more information visit the U.S. Fish and Wildlife Service website: www.fws.gov .
                                                  U.S. Department of Justice

                                                  Terrence Berg
                                                  United States Attorney
                                                  Eastern District of Michigan

                                                  Suite 2001
                                                  211 West Fort Street
                                                  Detroit, Michigan 48226-3277

For Immediate Release:

Contact: Gina Balaya (313) 226-9758



June 15, 2009


Event: Guilty Plea
Defendant: Rayford Jackson


  DETROIT CONSULTANT PLEADS GUILTY TO CONSPIRACY TO COMMIT
            BRIBERY RELATED TO SYNAGRO CONTRACT

Rayford Jackson, 44, of Detroit, pleaded guilty today to one count of conspiracy to commit
bribery before United States District Judge Avern Cohn, United States Attorney Terrence Berg
announced today.

Berg was joined in the announcement by Andrew G. Arena, Special Agent In Charge of the
Detroit Field Office of the Federal Bureau of Investigation and Maurice Aouate, Special Agent
in Charge of the Detroit Field Office of the Internal Revenue Service.

Jackson worked as a paid consultant for Synagro Technologies, and his duties included
facilitating the Detroit City Council’s approval of a sludge hauling contract.

The charge carries a maximum sentence of 5 years in federal prison and a fine of up to
$250,000.

The investigation of this case was conducted by the Federal Bureau of Investigation and the
Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney R. Michael
Bullotta and Assistant U.S. Attorney Mark D. Chutkow.
                                                U.S. Department of Justice

                                                Terrence Berg
                                                United States Attorney
                                                Eastern District of Michigan

                                                Suite 2001
                                                211 West Fort Street
                                                Detroit, Michigan 48226-3277

For Immediate Release:

Contact: Gina Balaya (313) 226-9758


June 15, 2009


Event: Indictment
Defendant: Rebecca Sharp et al


             OWNER OF HEALTH CARE AGENCY PLEADS GUILTY
                         IN MEDICARE KICKBACK SCHEME
Rebecca Sharp, owner of a health care agency, and one of eight defendants charged in a
scheme to solicit and pay kickbacks in exchange for Medicare patients, pleaded guilty today,
United States Attorney Terrence Berg announced.


      U.S. Attorney Berg was joined in the announcement by Andrew G. Arena, Special Agent
in Charge, Federal Bureau of Investigation.


      Sharp, age 43, from Ypsilanti, pleaded guilty in United States District Court before the
Honorable Avern Cohn to Count One of the indictment which charged Sharp with Conspiracy
to Violate the Health Care Anti-Kickback Statute.


      According to the indictment, between 2002 and 2005, Rebecca Sharp received over
$1.1 million in kickbacks for referring Medicare beneficiaries to home health care agencies.
Sharp obtained potential home health care patients by instructing her staff at Continuing
Senior Care Co, Inc. and Marketing & Assessment to telephone senior citizens and offer
medical services and chore workers. If senior citizens inquired how her staff obtained their
names, Sharp’s employees told them the information came from Medicare. Once the
Medicare information was acquired, a doctor, employed by Sharp, visited the senior citizen,
measured vitals signs, and prescribed home health care. After obtaining patients with
Medicare coverage, Sharp referred the individuals to home health care agencies in exchange
for a fee. Sharp claimed she could refer 80 patient names and Medicare numbers per week to
a home health agency and that she charged a $250 per-patient referral fee. Sharp also
claimed she employed doctors willing to sign plans of care regardless of a patient’s actual
medical needs.


      The following individuals, also charged in the indictment, are alleged to have conspired
with Sharp by paying kickbacks to Sharp for patient referrals:


      Nancy Razalan, age 45, resident of Rochester Hills and owner of New Century Home
Health Care, Inc., 1387 East 12 Mile Road, Madison Heights, Michigan;


      Generosa Agustin, age 51, resident of West Bloomfield and owner of Family Care
Choice and Services, Inc., 23800 West 10 Mile Road, Suite 108, Southfield, Michigan;


      Kevin Watson, age 42, resident of Ypsilanti and owner of Watson Health Care, Inc.,
17330 Northland Park Court, Suite 202, Southfield, Michigan;


      Jaqueline Jackson, age 43, resident of Ypsilanti and owner of Superior Home Care,
Inc.,17330 Northland Park Court, Suite 201, Southfield, Michigan;


      Hafiz Anjum, age 43, resident of West Bloomfield and owner of Open Arms Home Care,
Inc., 29551 Greenfield Road, Suite 118, Southfield, Michigan;


      Michael Gilliam, age 51, resident of West Bloomfield and owner of Quality Home Health
Care Services of Michigan, Inc., 23800 West Ten Mile Road, Suite 250, Southfield, Michigan;
and


       Edwin McBeth, age 43, resident of Emporia, Virginia, former administrator at Tender
Nursing Home Care L.L.C., 1577 North Wixom Road, Wixom, Michigan.


       Under the plea agreement, Sharp faces up to 57 months imprisonment, restitution to the
Medicare Program in the amount of $5,220,320.57, and a fine of up to $25,000.00. Sharp also
consented to the forfeiture of over $250,000 and three vehicles seized during the investigation.




       United States Attorney Terrence Berg said, “The Medicare program is intended to assist
older Americans to be able to afford the medical treatment and health care that they need.
When Medicare is abused by unscrupulous persons to pay for unnecessary treatment, and to
garner kickbacks, that conduct harms both legitimate Medicare recipients as well as the
program itself.”


       Special Agent in Charge of the FBI, Andrew Arena said, “Medicare is based on the
honesty and integrity of the program participants. Those who cheat Medicare are cheating the
American taxpayers who ultimately bear the financial loss. The FBI is committed to protecting
our healthcare systems from fraud and abuse."


       Berg congratulated the hard work of the special agents of the FBI for their efforts in
pursuing this case. The case is being prosecuted by Assistant U.S. Attorney Sarah Resnick
Cohen and Assistant U.S. Attorney Phillip Ross.
                                                 U.S. Department of Justice

                                                 Terrence Berg
                                                 United States Attorney
                                                 Eastern District of Michigan

                                                 Suite 2001
                                                 211 West Fort Street
                                                 Detroit, Michigan 48226-3277

For Immediate Release:
Contact: 	Gina Balaya (313) 226-9758
          Stephen Moore - IRS (313) 234-2410
          Richard Isaacson - DEA (313) 234-4310


June 16, 2009

Event: Guilty Plea
Defendant: Gary Yee


     SOUTHFIELD JEWELER PLEADS GUILTY TO MONEY LAUNDERING
       Gary Yee, 33, of West Bloomfield, Michigan pleaded guilty today to one count of money
laundering and agreed to forfeiture $1 million dollars, announced United States Attorney
Terrence Berg.


       Berg was joined in the announcement by Maurice M. Aouate, Special Agent in Charge,
Internal Revenue Service, Criminal Investigation and Robert Corso, Special Agent in Charge,
Drug Enforcement Administration.


       According to court records, for more than eight years Gary Yee has operated Golden
Sun Jewelry, a business located in the Advance Building in Southfield, Michigan which sells
luxury watches and expensive customized jewelry. Those records reveal that Gary Yee
laundered more than $1.5 million in cash for narcotics traffickers, including a list of the most
notorious dealers in the Detroit area, as well as criminals from as far away as Arizona. Yee’s
criminal clients sought out Golden Sun Jewelers to buy items such as diamond encrusted
watches for as much as $80,000 in cash based on Yee’s reputation for dealing ‘under the
table’ and his agreement not to file required reports, including IRS Form 8300, Cash Received
in a Trade or Business, required for any transactions involving more than $10,000.


       In the early months of 2008, the Detroit offices of IRS CI and DEA ran a successful
undercover operation during which two federal agents, posing as marijuana dealers, made
separate purchases of a $32,000 watch and a $40,000 watch in cash from Gary Yee in the
back offices of Golden Sun Jewelers. In both instances, Gary Yee accepted cash payments of
over $10,000 while assuring the undercover agents that ‘no paperwork’ would be filed. A
search of records showed that Golden Sun Jewelers failed to file the required IRS Form 8300s
for the cash purchases of the watches.


       United States Attorney Berg said, “Defendants who deal in high-end goods like
expensive jewelry , luxury cars, or real estate are prohibited by federal money laundering laws
from shrouding the ill-gotten gains of narcotics dealers. Through aggressive prosecution, my
office will continue to try to disrupt narcotics dealing profits by following dirty money wherever it
leads and prosecuting those who traffic in it.”


       IRS CI Special Agent in Charge Aouate stated that, “Narcotic traffickers, having a thing
for the ‘bling,’ will seek out jewelers with the reputation to break the law and help conceal their
illegal drug profits.”


       DEA Special Agent in Charge Corso stated that, “Unfortunately, illegal drug profits are
very enticing for some business owners, and the chance to get their hands on that dirty money
is hard to pass up. It comes as no surprise that drug traffickers were drawn to a person like
Mr. Yee, who was more than willing to assist drug traffickers in hiding their illegal profits.”


               A sentencing date for Mr. Yee is set for October 29, 2009 at 2:00 pm.
             U.S. Attorney Berg thanks IRS CI and DEA for their assistance in this
investigation. The case was prosecuted by Assistant U.S. Attorneys Bruce C. Judge and Philip
Ross.
                                                 U.S. Department of Justice

                                                 Terrence Berg
                                                 United States Attorney
                                                 Eastern District of Michigan

                                                 Suite 2001
                                                 211 West Fort Street
                                                 Detroit, Michigan 48226-3277

For Immediate Release:

Contact: Gina Balaya (313) 226-9758


June 17, 2009


Event: Sentenced
Defendant: Matthew Mercer-Kinser


                    OXFORD MAN SENTENCED TO 12½ YEARS
        FOR TRANSPORTING CHILD PORNOGRAPHY INTO MICHIGAN
     Terrence Berg, United States Attorney for the Eastern District of Michigan, announced
that Matthew Mercer-Kinser, 23, of Oxford, Michigan, was sentenced yesterday in Federal
District Court following his February 2009 guilty plea to charges of transportation of child
pornography in interstate commerce. Mr. Berg was joined in the announcement by Andrew G.
Arena, Special Agent in Charge of the Federal Bureau of Investigation, Detroit Field Division.
Mercer-Kinser was sentenced by the Honorable Robert H. Cleland to 151 months in federal
prison, to be followed by 10 years of supervised release.


     According to court records, Mercer-Kinser amassed a collection of thousands of videos
and images of child pornography while living in Georgia. When he relocated to Michigan in the
spring of 2008, he brought his collection with him. The illegal images and movies that he had
collected over time included graphic depictions of the sexual assault of infants and small
children, bondage and bestiality. The FBI investigation of Mercer-Kinser was initiated by a
referral from the Australian Federal Police, when Mercer-Kinser sent hundreds of child
pornography images to an undercover Australian officer through his photo sharing account.
Further investigation revealed that among Mercer-Kinser’s collection were approximately1800
images of child pornography that had previously identified by law enforcement, depicting over
100 children who had been sexually victimized.


     United States Attorney Terrence Berg said: "People who collect and distribute child
pornography play a crucial role in perpetuating this deplorable industry. These young victims
are exploited each and every time an image is viewed or sent over the Internet. Judge
Cleland’s sentence sends a strong message that criminals who engage in similar conduct will
be aggressively prosecuted and will face significant punishment. I commend the work of the
local FBI, together with our colleagues in the Australian Federal Police, in bringing this
defendant to justice.”


     This case was brought as part of Project Safe Childhood, a nationwide initiative
designed to protect children from online exploitation and abuse. Led by the United States
Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better
locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as
identify and rescue victims. For more information about Project Safe Childhood, please visit
www.projectsafechildhood.gov/.


     Assistant United States Attorney Erin Shaw prosecuted the case for the United States.
                                                U.S. Department of Justice

                                                Terrence Berg
                                                United States Attorney
                                                Eastern District of Michigan

                                                Suite 2001
                                                211 West Fort Street
                                                Detroit, Michigan 48226-3277

For Immediate Release:

Contact: Gina Balaya (313) 226-9758


June 17, 2009


Event: Indictment
Defendant: Leonard A. Davis


           FORMER MEMBER OF LABORERS LOCAL 334 INDICTED
    A former member of Laborers Local 334, Leonard A. Davis, 39, was indicted by a
federal grand jury in Detroit for theft from an employee pension benefit plan, Laborers
Annuity Fund - Detroit and Vicinity, United States Attorney Terrence Berg announced
today.
    Berg was joined in the announcement by James Vanderberg, Special Agent in
Charge, U.S. Department of Labor - Office of Inspector General, Office of Labor
Racketeering and Fraud Investigations, William Cotter, Special Agent in Charge, Social
Security Administration - Office of Inspector General, and Paul Baumann, Regional
Director, U.S. Department of Labor - Employee Benefits Security Administration.


     The one-count indictment charges that between April 24, 2004 and June 25,
2004, Davis fraudulently obtained $7,787.92 from the Laborers Annuity Fund - Detroit
and Vicinity, an employee pension benefit plan subject to Title 1 of the Employee
Retirement Income Security Act of 1974, by submitting false social security
documentation in support of his claim of permanent disability.
     An indictment is only a charge and not evidence of guilt. A defendant is entitled
to a fair trail in which it will be the government’s burden to prove guilt beyond a
reasonable doubt.


     The case was investigated by Special Agent Steven Bognar, U.S. Department of
Labor, Office of General Inspector, Office of Labor Racketeering and Fraud
Investigations; Auditor Daniel Barber, U.S. Department of Labor, Employee Benefits
Security Administration; and Special Agent Brad Martin, Social Security Administration,
Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney
James M. Wouczyna.
                                                U.S. Department of Justice

                                                Terrence Berg
                                                United States Attorney
                                                Eastern District of Michigan

                                                Suite 2001
                                                211 West Fort Street
                                                Detroit, Michigan 48226-3277

For Immediate Release:
Contact: Gina Balaya (313) 226-9758
         Stephen Moore - IRS (313) 234-2410

June 17, 2009

Event: Sentenced
Defendant: Tracy Johnson


 DETROIT WOMAN GOES TO JAIL FOR HER ROLE IN A CONSPIRACY TO
                                    DEFRAUD THE IRS
     Tracy Johnson, of Detroit, was sentenced on June 16, 2009, to 18 months imprisonment,
followed by two years of supervised release, announced United States Attorney Terrence
Berg. This sentenced was handed down by United States District Court Judge John Corbett
O’Meara as a result of her guilty plea to conspiracy to defraud the Internal Revenue Service.


     Mr. Berg was joined in the announcement by Special Agent in Charge Maurice Aouate,
Internal Revenue Service Criminal Investigation Division.


     According to court records, Johnson, along with Charles Bryson, of Detroit, conspired to
defraud the IRS by providing false W-2s to several taxpayers to be used in the preparation of
their federal income tax returns. They also provided transportation to legitimate tax preparation
offices where returns were prepared using these false W-2s. They made arrangements for the
taxpayers to pick up their refund checks and cash them out, while keeping a substantial portion
of the refunds for themselves. This conspiracy caused over $123,000 in false refund claims to
be submitted to the IRS.


     Bryson was previously sentenced to 18 months imprisonment for his role in this
conspiracy.


     United States Attorney Terrence Berg stated, “Helping others to prepare fraudulent tax
returns is a serious violation that cheats the government and harms the taxpayer as well. Such
conduct will be pursued vigorously."


     Special Agent in Charge Maurice Aouate, Internal Revenue Service Criminal
Investigation Division said, “No one is entitled to an undeserved windfall and refunds should
only be issued to taxpayers who are entitled to them. At the IRS, protecting taxpayer money is
a matter we take extremely seriously.”


     United States Attorney Berg thanked the special agents of IRS Criminal Investigation
Division. The case is being prosecuted by Assistant United States Attorney Diane L. Marion.
                                                 U.S. Department of Justice

                                                 Terrence Berg
                                                 United States Attorney
                                                 Eastern District of Michigan

                                                 Suite 2001
                                                 211 West Fort Street
                                                 Detroit, Michigan 48226-3277

For Immediate Release:

Contact: Gina Balaya (313) 226-9758



June 22, 2009


Event: Guilty Plea
Defendant: Alan M. Ralsky et al


        ALAN RALSKY, “KING OF SPAM”, PLEADS GUILTY WITH FOUR 

    CO-DEFENDANTS IN MULTI-MILLION DOLLAR E-MAIL STOCK FRAUD

                                           SCHEME

Alan M. Ralsky and four other individuals pleaded guilty today in federal court in Detroit for
their roles in a wide-ranging international stock fraud scheme involving the illegal use of bulk
commercial e-mails, or “spamming,” announced United States Attorney Terrence Berg.


       Berg was joined in the announcement by Assistant Attorney General of the Criminal
Division, Lanny A. Breuer, Special Agent in Charge Andrew G. Arena, FBI; Special Agent in
Charge Maurice M. Aouate; Internal Revenue Service Criminal Investigation; and Inspector in
Charge Joseph Pirone, U.S. Postal Inspection Service.


       Alan M. Ralsky, 64, of West Bloomfield, Mich., and Scott K. Bradley, 38, of West
Bloomfield, Mich., both pleaded guilty to conspiracy to commit wire fraud, mail fraud and to
violate the CAN-SPAM Act. Ralsky and Bradley also pleaded guilty to wire fraud, money
laundering, and violating the CAN-SPAM Act. Under the terms of his plea agreement, Ralsky
faces up to 87 months in prison and a $1 million fine while Bradley is facing up to 78 months in
prison and a $1 million fine. Both agreed to cooperate with federal authorities in return for a
possible reduction in their sentences.


       John S. Bown, 45, of Fresno, Calif., pleaded guilty to conspiracy to commit wire fraud,
mail fraud, and to violate the CAN-SPAM Act. He also pleaded guilty to conspiring to commit
computer fraud by creating a botnet and violating the CAN-SPAM Act. Under the terms of his
plea agreement, Bown is facing up to 63 months in prison and a $75,000 fine. Bown also
agreed to cooperate with the government in seeking a lesser sentence.


       William C. Neil, 46, of Fresno pleaded guilty to conspiring to violate the CAN-SPAM Act
and violating the CAN-SPAM Act. Under the terms of his plea agreement, Neil is facing up to
37 months in prison and a $30,000 fine.


       James E. Fite, 36, of Culver City, Calif., pleaded guilty to conspiracy to commit wire
fraud, mail fraud, and to violate the CAN-SPAM Act. He also pleaded guilty to violating the
CAN-SPAM Act and making false statements to FBI agents. Under the terms of his plea
agreement, Fite is facing up to two years in prison and a $30,000 fine.


       United States Attorney Terrence Berg said, “Alan Ralsky was at one time the world’s
most notorious illegal spammer. Today Ralsky, his son-in-law Scott Bradley, and three of their
co-conspirators stand convicted for their roles in running an international spamming operation
that sent billions of illegal e-mail advertisements to pump up Chinese ‘penny’ stocks and then
reap profits by causing trades in these same stocks while others bought at the inflated prices.
Using the Internet to manipulate the stock market through spam e-mail campaigns is a serious
crime, and this case serves notice that federal law enforcement has the both the capability and
the will to successfully investigate, prosecute and punish such cybercrimes.”


       “We will not allow criminals to use e-mail as a conduit for fraud. This prosecution, the
Department’s largest to date under the CAN-SPAM Act, underscores our strong and steadfast
commitment to ridding our financial markets and cyberspace of e-fraudsters looking to prey on
innocent victims,” said Assistant Attorney General Lanny A. Breuer.


       Andrew G. Arena, Special Agent in Charge, Federal Bureau of Investigation said,
“Cyber crime investigations are a top priority of the FBI and we will continue to aggressively
investigate those individuals who use and hide behind computers to commit various crimes.”


       Maurice M. Aouate, Special Agent in Charge, Internal Revenue Service Criminal
Investigation said, “In today’s competitive international business world, there will always be a
select few who illegally manipulate the system for their own profit,” said Aouate. “IRS CI will
continue to diligently follow the money and assist in the seizure and forfeiture of any ill-gotten
gains from their illegal business practices."


       Joseph A. Pirone, US Postal Inspector in Charge said, “Today marks a victory for all
those who entrust their money to others within the U.S. economy. Postal Inspectors have
protected Americans from those that have used the U.S. Mail for fraudulent purposes since the
passage of the Mail Fraud Statute in 1872. Ralsky’s and Bradley’s pleas demonstrate the
Postal Inspection Service's continuing commitment to protect the public.”


       All five defendants were released under conditions of bond. A date for sentencing will
be set by the Court.


       According to court records, from January 2004 through September 2005, Ralsky,
Bradley, Judy Devenow, Bown, William Neil, Anki Neil, James Bragg, Fite, Peter Severa, How
Wai John Hui, Francis Tribble, and others, engaged in an interrelated set of conspiracies
designed to use spam e-mails to manipulate thinly traded stocks and profit by trading in those
stocks after their share prices increased as a result of the recipients of the spam e-mails
trading in the stocks being promoted. The defendants were indicted in the Eastern District of
Michigan in December 2007.


       Ralsky served as the chief executive officer and primary deal maker for the spam e-mail
operation. Bradley, Ralsky’s son-in-law, served as the chief financial officer and director of
operations for the spam e-mail operation. Bown, who was chief executive officer of Internet
services company GDC Layer One, served as the chief technology officer for the spam e-mail
operation. William Neil, who was an employee of GDC Layer One, built and maintained a
computer network used to transmit spam e-mails in furtherance of the conspiracy. James Fite
was a contract spammer who hired others to send spam e-mails in furtherance of the
conspiracy.


       Judy Devenow, How Wai John Hui, and Francis Tribble previously pleaded guilty for
their roles in the conspiracy.


       According to court documents, many of the spam e-mails sent in furtherance of the
conspiracy promoted thinly traded “pink sheet” stocks for U.S. companies owned and
controlled by individuals in Hong Kong and China. The spam e-mails contained materially
false and misleading information or omissions and were created and sent using software
programs that made it difficult to trace them back to the conspirators. According to the
indictment, the conspirators used wire communications, the U.S. mail, and common carriers to
further their frauds. The conspirators also engaged in money laundering involving millions of
dollars generated by their manipulative stock trading.


       According to the indictment, the defendants used various illegal methods in order to
maximize the amount of spam that evaded spam-blocking devices and tricked recipients into
opening, and acting on, the advertisements in the spam. These included using falsified
“headers” in the e-mail messages, using proxy computers to relay the spam, using falsely
registered domain names to send the spam, and also making misrepresentations in the
advertising content of some of the underlying email messages.


       The charges arose after a three-year investigation, led by the FBI with assistance from
the U.S. Postal Inspection Service and the Internal Revenue Service, revealed a sophisticated
and extensive spamming operation. The case is being prosecuted by United States Attorney
Terrence Berg and Trial Attorneys Thomas Dukes and Mona Sedky Spivack of the Criminal
Division’s Computer Crime and Intellectual Property Section.
                                               U.S. Department of Justice

                                               Terrence Berg
                                               United States Attorney
                                               Eastern District of Michigan

                                               Suite 2001
                                               211 West Fort Street
                                               Detroit, Michigan 48226-3277

For Immediate Release:

Contact: Gina Balaya (313) 226-9758



June 22, 2009


Event: Conviction
Defendant: Eskender Henareh Mafarani


                              ONTARIO MAN CONVICTED
               ON FEDERAL BULK CASH SMUGGLING OFFENSE
      A 53-year-old Canadian man from Richmond Hill, Ontario was found guilty today by a
federal jury in Detroit on a charge of bulk cash smuggling, United States Attorney Terrence
Berg announced today.


      Berg was joined in the announcement by Brian Moskowitz, Special Agent in Charge,
Department of Homeland Security, Immigration and Customs Enforcement.


      Found guilty was Eskender Henareh Mafarani. He was also convicted of making a
material false statement to law enforcement agents.


The jury verdict concluded a one-week trial before United States District Judge David M.
Lawson.
       The evidence presented at trial showed that Mafarani, with the intent to evade currency
reporting requirements, knowingly concealed more than two million dollars in U.S. currency
and attempted, on November 7, 2008, to bring that currency across the Ambassador Bridge
from Canada into the United States. A search of the tractor-trailer driven by Mafarani resulted
in the discovery of $2,095,180 in U.S. currency and $1,120 in Canadian currency hidden inside
the walls of Mafarani’s truck.


       The jury also returned a special verdict of forfeiture, finding that certain properties were
involved in Mafarani’s bulk cash smuggling offense. The four properties forfeited to the United
States include: $2,095,180 in U.S. currency; $1,120 in Canadian currency; one 2008 Volvo
Truck; and one 2003 Utility commercial trailer.


       United States Attorney Terrence Berg said, “Bringing millions of dollars across the
border from Canada to the US hidden inside the walls of a tractor-trailer is clear-cut example
of illegal bulk cash smuggling. We must be vigilant in enforcing violations of the bulk cash
smuggling statute because this law is an effective tool in our arsenal for combating the
movement of large sums of currency by those trying to launder the proceeds of crime.”.


       Berg commended the work of the agents of Immigration and Customs Enforcement and
the officers of the United States Customs and Border Protection in the investigation.


       A sentencing date has been set for October 28, 2009 at 3:00 p.m. Mafarani faces up to
five years imprisonment. The case was prosecuted by Assistant U.S. Attorneys Michael Martin
and Rita Foley.
                                                 U.S. Department of Justice

                                                 Terrence Berg
                                                 United States Attorney
                                                 Eastern District of Michigan

                                                 Suite 2001
                                                 211 West Fort Street
                                                 Detroit, Michigan 48226-3277

For Immediate Release:

Contact: Gina Balaya (313) 226-9758


June 24, 2009


Event: Sentenced
Defendant: Kirkland Dudley


                  LOCAL DETROIT BUSINESSMAN SENTENCED
United States Attorney Terrence Berg announced today that Kirkland Dudley, a Detroit
businessman and resident, was sentenced by the Hon. George Caram Steeh to three years
imprisonment to be followed by three years supervised release on two counts of wire fraud for
which he had been convicted by jury at trial this past February. Mr. Dudley was also ordered
to pay restitution in the amount of $530,000 to the two victims of the offense.


       Kirkland Dudley, aged 59, owned a start up telecommunications company, GVC
Networks, LLC, in 2002 and 2003. The evidence presented at trial established that Mr. Dudley
defrauded two lenders, Walter Douglas, owner of Avis Ford in Southfield, Michigan and
Theodore Martin, a retired businessman from Florida, of $1 million in April and May 2003. Mr.
Dudley represented to his victims that he would use their loan monies to purchase a
communications switch housed in a facility in Southfield and fiber optic circuits owned by the
bankrupt giant telecommunications company Adelphia Business Solutions Operations and
operate the first minority owned telephone company in the country. Mr. Dudley deceived the
two businessmen by providing them with a series of documents indicating that their money
would be held in a restricted escrow account at Comerica Bank and that their money would be
used solely toward purchasing the Adelphia equipment. Dudley also falsely represented that
the lenders would be repaid within 30 days from the proceeds of a contract GVC Networks had
entered into with a Grand Rapids company, US Signal, to lease much of the fiber optic
capacity GVC Networks was buying from Adelphia and pay GVC Networks nearly $2 million
within 30 days. In reality, Mr. Dudley arranged to open a Comerica account which was not a
restricted escrow account, and provided the lenders with a forged contract with US Signal. He
then expended the lenders’ monies for other purposes over the next eight months, but lulled
them into believing he had still preserved their monies and was still trying to consummate the
deal with Adelphia.


      United States Attorney Terrence Berg said, "Clearly both the jury and the court
concluded that presenting phony contracts and forged bank account records to lenders in
order to obtain financing is a serious fraud that must be punished. I would like to commend the
excellent investigative work of the U.S. Postal Inspection Service who investigated the case.
                                                 U.S. Department of Justice

                                                 Terrence Berg
                                                 United States Attorney
                                                 Eastern District of Michigan

                                                 Suite 2001
                                                 211 West Fort Street
                                                 Detroit, Michigan 48226-3277

For Immediate Release:

Contact: Gina Balaya (313) 226-9758

            Sandra Berchtold - FBI (313) 237-4218

June 24, 2009

Event: Indictments

Defendant: Local Health Care Fraud (40 people)



         MEDICARE FRAUD STRIKE FORCE OPERATIONS LEAD TO CHARGES 

       AGAINST 58 DOCTORS, HEALTH CARE EXECUTIVES AND BENEFICIARIES

        FOR MORE THAN $50 MILLION IN ALLEGED FALSE BILLING IN DETROIT



              Early Morning Takedown Leads to Arrests in Detroit and Miami
DETROIT - Forty people have been arrested today on charges of being involved in schemes to
submit more than $50 million in false Medicare claims United States Attorney Terrence Berg
announced today. Mr. Berg was joined in the announcement by Special Agent in Charge
Andrew G. Arena, Federal Bureau of Investigation and Lamont Pugh,III, Special Agent in
Charge for the Chicago region of the U.S. Department of Health and Human Services Office of
Inspector General, which covers the State of Michigan. The Detroit Health Care Fraud Strike
Force, announced by the U.S. Attorney General last month, is the third phase of a targeted
criminal, civil and administrative effort against individuals and health care companies that
fraudulently bill the Medicare program.


       The seven indictments, charging 58 people, were unsealed today in federal court in
Detroit. While the indictments were returned by a grand jury in Detroit, individuals were
arrested today in Detroit and Miami as a result of phase three operations of the Strike Force.
The joint DOJ-HHS Medicare Fraud Strike Force is a multi-agency team of federal, state and
local investigators, including investigators from Blue Cross Blue Shield of Michigan, designed
to combat Medicare fraud through the use of Medicare data analysis techniques and an
increased focus on community policing.


      According to the indictments, the defendants charged today participated in schemes to
submit claims to Medicare for treatments that were in fact medically unnecessary and
oftentimes, never provided. In many cases, indictments allege that beneficiaries accepted
cash kickbacks in return for allowing providers to submit forms saying they had received the
unnecessary and not provided treatments. Collectively, the physicians, medical assistants,
patients, company owners and executives charged in the indictments are accused of
conspiring to submit more than $50 million in false claims to the Medicare program. The Strike
Force operations in Detroit have identified two primary areas – infusion therapy and
physical/occupational therapy providers – in which schemes were allegedly orchestrated to
defraud the Medicare program.


      United States Attorney Berg said, “Combating health care fraud is critical to ensuring
the viability of our health care system. Today’s arrests demonstrate that our office and the
Department of Justice nationally will not allow doctors or clinic owners to abuse that system
and profit from millions of dollars in false billings. The Health Care Strike Force represents an
excellent team effort between the U.S. Attorney’s Office, the Justice Department, the FBI, and
the Department of Health and Human Services. We are lucky to have such a strike force
operating in Detroit, and we have only just begun to fight in terms of attacking the systemic
problem of health care fraud in metro-Detroit and the Eastern District of Michigan.”


      Special Agent Andrew Arena said, “The arrests today of medical professionals,
business owners, Medicare beneficiaries, and their recruiters mark the culmination of several
years of dedicated work by the FBI and our investigative partners, Department of Health and
Human Services (HHS), Office of the Inspector General. The arrests also trumpets the arrival
of the newly created Motor City Strike Force, a collaboration of FBI and HHS agents, the
United States Attorney's Office, and prosecutors from DOJ Main Justice. The message of the
Motor City Strike Force is clear. Fraud against the Medicare system and private insurers,
committed by individuals or companies in Michigan or moving into Michigan, will not be
tolerated. The strike force will be on alert and will aggressively target the dishonest individuals
who undermine our Nation's health care system for selfish gain."


       "Today's arrests demonstrate the value of aggressive and swift Government response
to evolving health care fraud schemes, "said Lamont Pugh III, Special Agent in Charge for the
Chicago region of the U.S. Department of Health and Human Services Office of Inspector
General, which covers the State of Michigan. "The new Detroit strike force demonstrates how
the Health Care Fraud Prevention and Enforcement Team (HEAT) is expanding collaborative
anti-fraud efforts across government and using cutting edge technology to protect our
programs and beneficiaries."


       A brief description of the alleged charges are as follows:


       C	     Daisy Martinez, age 50, and owner of Sacred Hope Center, Inc. located in
              Southfield, Michigan was indicted along with 10 other individuals for allegedly
              conspiring to submit approximately $4.2 million in false claims to Medicare for
              injection and infusion therapy services from approximately July 2006 to March
              2007. The indictment alleges that the injection, infusion and other treatments
              purportedly provided at the clinic were medically unnecessary and were not
              provided.


       C      Dulce Briceno, age 56 and owner and operator of Xpress Center, Inc. located in
              Livonia, Michigan, was indicted along with 6 other individuals for allegedly
              conspiring to submit approximately $2.3 million in false claims to Medicare for
              injection and infusion therapy from approximately October 2006 to March 2007.
              The indictment alleges that the injection, infusion and other treatments
              purportedly provided at the clinic were medically unnecessary and were not
     provided.


C	   Suresh Chand, 44 and Jose Castro-Ramirez, MD, 60 were indicted along with 14
     others for allegedly conspiring to submit approximately $18.3 million in false
     claims to Medicare for physical and occupational therapy services from
     approximately 2003 to March 2007. The indictment alleges that Chand owned
     and controlled Continental Rehab Services, Inc (CRS) and Pacific Management
     Services, Inc. (PM), two contract therapy companies both located in Warren,
     Michigan. Chand and his co-conspirators billed Medicare for therapy services
     purportedly provided by CRS and PM through three Medicare providers they
     controlled. Castro-Ramirez, the indictment alleges, submitted claims to Medicare
     for home visits purported provided to Medicare beneficiaries allegedly in need of
     physical therapy, occupation therapy, and other serviced when such visits were
     never conduction. In addition, Castro-Ramirez is alleged to have signed
     prescriptions and other documents certifying the need for therapy services for
     patients he did not exam.


C	   Jose Rafael Martinez, 33 and Denisse Martinez, 27, were the owner and
     operator of RDM Center located in Canton, Michigan that purported to specialize
     in treating patients by providing infusion and injection therapy. Alan Silber, MD,
     47, was a medical doctor employed by RDM. They were indicted along with four
     others for allegedly conspiring to submit approximately $970,316 in false claims
     to Medicare for injection and infusion therapy services from approximately 2006
     to March 2007. The indictment alleges that Martinez ordered a co-conspirator to
     order unnecessary tests, make entries in medical records and authorize
     treatments to make it appear that legitimate medical services, including infusion
     and injection therapies and other services, were being provided to patients who
     were Medicare beneficiaries at RDM.


C	   Caridad Guilaret, 52, and Clara Guilarte, 42, were the owner and operator of
     Dearborn Medical Rehabilitation Center in Detroit (DMRC) that purported to
             specialize in treating patients by providing infusion and injection therapy. They
             were indicted, along with 4 others for allegedly conspiring to submit
             approximately $9.1 million in false claims to Medicare for injection and infusion
             therapy services from approximately November 2005 to March 2007. The
             indictment alleges that the injection, infusion and other treatments purportedly
             provided at the clinic were medically unnecessary and were not provided.


      C	     Bernice Brown, 55, was the owner and operator of Wayne County Therapeutic,
             Inc. (WCT) located in Livonia, Michigan. Brown, along with 4 other individuals,
             were indicted for allegedly conspiring to submit approximately $21.2 million in
             false claims to Medicare for physical and occupational therapy services from
             approximately October 2002 to April 2007. The indictment alleges that Brown,
             through WCT, contracted with companies, such as Universal Rehab Services,
             Inc.. These contact companies supplied WCT with therapy files that purported to
             document physical and occupational therapy sessions to Medicare beneficiaries,
             which never occurred.


      C	     Also indicted were Iftikhar Ghouri, Ehsan Rana, Nasim Ahmed, Rajindera
             Sachdeve and Venkata rama-Reddy Medapati charged with defrauding
             Medicare. The indictment alleges that the defendants would create physical and
             occupational therapy files using information that they had purchased from
             Medicare beneficiaries or which was stolen. Those files indicated that physical
             and occupational therapy services were provided to patients when in fact they
             were not. The defendants submitted approximately $4 million in fraudulent
             claims to Medicare. They are currently fugitives.


      The charges in the indictments include Heath Care Fraud punishable by up to 10 years
in prison, Conspiracy to Launder Money and Money Laundering, both punishable by up to 20
years in prison, Destroying records punishable by up to 20 years in prison and Aggravated
Identity Theft punishable by up to two years in prison.
       The Strike Force operations in Detroit are part of the Health Care Fraud Prevention &
Enforcement Action Team (HEAT), a renewed effort announced in May 2009 between the
Department of Justice and HHS to focus their joint efforts to prevent fraud and enforce current
anti-fraud laws around the country. The HEAT taskforce is made up of top-level law
enforcement agents, prosecutors and staff from both Departments and their operating
divisions. In the May 2009 announcement, Attorney General Holder and Secretary Sebelius
announced the expansion of the Strike Force into Detroit and Houston to build upon existing
partnerships between the agencies in a heightened effort to reduce fraud and recover taxpayer
dollars.


       The work of the Detroit Strike Force is another important step in the multi-phase
enforcement and regulatory HEAT initiative designed to reduce the potential for Medicare and
Medicaid fraud. Since its inception in March 2007 with phase one in South Florida and
expansion to phase two in Los Angeles in May 2008, the Strike Force has obtained
indictments of more than 250 individuals and organizations that collectively have billed the
Medicare program for more than $600 million. In addition, HHS’s Centers for Medicare and
Medicaid Services, working in conjunction with the HHS-OIG, is taking steps to increase
accountability and decrease the presence of fraudulent providers.


       Each of the three Detroit Strike Force teams is led by a federal prosecutor supervised
by the Justice Department’s Criminal Division’s Fraud Section in Washington, D.C., and the
U.S. Attorney’s Office for the Eastern District of Michigan. Each team has four to six agents,
with at least one agent from the FBI and HHS-OIG.


       The cases are being prosecuted by Assistant United States Attorney F. William Soisson
of the United States Attorney’s Office, Eastern District of Michigan and attorneys from the
Fraud Section in the Justice Department’s Criminal Division, including Deputy Chief Kirk
Ogrosky and Trial Attorneys John K. Neal and Benjamin D. Singer as well Special Assistant
U.S. Attorney Thomas W. Beimers in the U.S. Attorney’s Office for the Eastern District of
Michigan, on detail from HHS-OIG.
      An indictment is merely an allegation, and defendants are presumed innocent until and
unless proven guilty.


      To learn more about the HEAT team, go to: www.hhs.gov/stopmedicarefraud
                                                 U.S. Department of Justice

                                                 Terrence Berg
                                                 United States Attorney
                                                 Eastern District of Michigan

                                                 Suite 2001
                                                 211 West Fort Street
                                                 Detroit, Michigan 48226-3277

For Immediate Release:

Contact: Gina Balaya (313) 226-9758



June 26, 2009


Event: Sentenced
Defendant: Bryan Joseph Ross et al


                     TWO METRO- AREA MEN SENTENCED IN
           CAR-THEFT AND COUNTERFEIT CASHIER’S CHECK RING
Two area men were sentenced today on charges of conspiracy to utter and uttering counterfeit
Comerica Bank cashiers checks, United States Attorney Terrence Berg announced.


       Bryan Joseph Ross, age 38, of Sterling Heights, Michigan, was sentenced to serve a
total of 78 months in the custody of the bureau of prisons on charges of conspiracy and
uttering counterfeit securities of an organization. Robert Burston, age 34, of Detroit, Michigan,
was sentenced to serve 30 months in custody for conspiracy. Both men were found guilty by a
federal jury in Detroit after a joint trial before the Honorable David M. Lawson, United States
District Judge.


       At the trial beginning February 5, 2009, the jury heard evidence that Ross organized
and used a group of at least ten people to call unsuspecting private sellers of late-model, high
end used cars, meet with the sellers playing roles as young couples or families to gain their
confidence, negotiate prices for the vehicles, and then purchase their cars using genuine-
looking counterfeit cashiers checks, purportedly issued by Comerica Bank, which Ross
arranged to have printed by a graphic artist he recruited into the scheme. Ross then used the
others to retitle the cars and quickly resell them before the false nature of the checks was
discovered. The proceeds were then divided among the participants. The evidence
established that from December 2002 through June 2003, numerous valuable vehicles were
obtained by Ross and his associates, including co-defendant Burston, in this manner.


       These convictions bring to five the number of defendants who have been charged and
federally convicted in this case. Local charges had been successfully prosecuted earlier in
Macomb, Oakland and Wayne counties against a number of Bryan Ross’s accomplices and
runners in the organization.


       United States Attorney Terrence Berg said, “These defendants perfected a scheme for
getting owners of high-end luxury vehicles to part with their cars by using counterfeit cashier’s
checks. Through the diligence of the U.S. Secret Service and the courage of the victim
witnesses, these perpetrators were brought to justice.” Berg commended the United States
Secret Service Detroit Field Office for its investigation that led to this successful prosecution.
The men remain free on bond pending designation to their federal correctional facilities.




       .
                                                 U.S. Department of Justice

                                                 Terrence Berg
                                                 United States Attorney
                                                 Eastern District of Michigan

                                                 Suite 2001
                                                 211 West Fort Street
                                                 Detroit, Michigan 48226-3277

For Immediate Release:

Contact: Gina Balaya (313) 226-9758


June 26, 2009


Event: Guilty Plea
Defendant: Monica Conyers


     DETROIT CITY COUNCIL PRESIDENT PRO TEM MONICA CONYERS
            PLEADS GUILTY TO CONSPIRACY TO COMMIT BRIBERY
Monica Conyers, 44, of Detroit, pleaded guilty today to one count of conspiracy to commit
bribery before United States District Judge Avern Cohn, United States Attorney Terrence Berg
announced today.


       Berg was joined in the announcement by Andrew G. Arena, Special Agent In Charge of
the Detroit Field Office of the Federal Bureau of Investigation and Maurice Aouate, Special
Agent in Charge of the Detroit Field Office of the Internal Revenue Service.


       According to records filed at the time of the plea, Ms. Conyers’ admitted to misusing her
office of Detroit City Council President pro tem, and her position as a trustee of the City of
Detroit General Retirement System pension, for personal gain. Specifically, according to the
records, Ms. Conyers and an aide received payments from persons who sought contracts,
money and/or favorable treatment from the City Council or the pension fund. One example of
this was in 2007, when Conyers admitted to receiving cash payments from Rayford Jackson
knowing that the payments were made to influence her to vote in favor of the Synagro contract.


        The charge carries a maximum sentence of 5 years in federal prison and a fine of up to
$250,000.


        United States Attorney Berg said, “Today Monica Conyers has pleaded guilty to
conspiracy to commit bribery in connection with her roles as a City Council member and as a
trustee of the Detroit pension board. This guilty plea is the result of the careful, thorough, and
solid investigative work of the FBI, the IRS, and the case preparation by the federal
prosecutors in my office. This conviction marks the conclusion of government’s investigation
of Ms. Conyers and the elected members of the Detroit City Council relating to the approval of
the Synagro contract, though the investigation relating to the Synagro contract continues as it
relates to others.


        “I commend the remarkable dedication of the law enforcement agencies and the
prosecutors who put this case together: the FBI, the IRS and members of the prosecution
team, particularly AUSAs Lynn Helland, John Engstrom, Mike Bullotta, Mark Chutkow and
Robert Cares who have spend untold hours working on this matter.”


        Special Agent Andrew G. Arena said, “Public corruption is a top investigative priority for
the FBI. Individuals who take an oath of office should be held responsible for their actions.
Anyone abusing their public position for personal gain, you know who you are so you should
be looking over your shoulder, under your bed, in your closet because we are coming to get
you.”


        The sentencing date will be set by the Court. Any sentence will be imposed pursuant to
the federal sentencing guidelines and federal law, and will be determined by the Court.


        Ms. Conyers was released on a personal recognizance bond.
                                                 U.S. Department of Justice

                                                 Terrence Berg
                                                 United States Attorney
                                                 Eastern District of Michigan

                                                 Suite 2001
                                                 211 West Fort Street
                                                 Detroit, Michigan 48226-3277
June 26, 2009
                       STATEMENT OF UNITED STATES ATTORNEY

                       TERRENCE BERG REGARDING GUILTY PLEA

                                 OF MONICA ANN CONYERS

Good morning. Today Detroit City Council Member Monica Ann Conyers pleaded guilty in
federal court to conspiring to commit bribery. According to Ms. Conyers’ statements in her
plea agreement and in open court, her conduct involved misuse of her positions as Detroit City
Council President pro tem and as trustee of the City pension board for personal financial gain.


       Today’s guilty plea by Ms. Conyers marks the completion of the government’s
investigation of the role that elected members of the Detroit City Council had in approving the
Synagro contract, though the investigation regarding the Synagro contract continues as to
others.


       In connection with that, because the result of this investigation is now public, I want to
state that this investigation has not uncovered evidence sufficient to support charging any
other elected members of the Detroit City Council with taking bribes or engaging in acts of
corruption relating to the Synagro contract. I also want to make it equally clear that the
evidence offered no suggestion that United States Representative John Conyers, Ms. Conyers’
husband, had any knowledge or role in Ms. Conyers’ illegal conduct, nor did the Congressman
attempt to influence this investigation in any way.


       This investigation took just under two years from the time we first discovered the
possibility of misconduct by Ms. Conyers until her plea of guilty today. This may seem like a
long time to people who are not familiar with the complexity and difficulties of federal public
corruption investigations, but the citizens of Detroit and of the whole Eastern District of
Michigan deserved a thorough and fair investigation that would lead to a successful outcome,
and I am very confident and proud to say that it is exactly what they have received. In fact, it is
due to the thoroughness of this investigation, and the solid nature of the carefully marshaled
evidence, that we have a high-level public figure pleading guilty to conspiracy to commit
bribery today. As a long term resident of the City of Detroit, I appreciate and understand the
importance of getting this matter resolved, and I am pleased that we have done so. We fully
realize that there is a need to complete these kinds of investigations as quickly as possible. In
our job, we have to balance that against the need to investigate effectively and fairly, and to
reach the right conclusion. That is what we did in this case.


       I would like to take a moment to acknowledge the remarkable dedication of the law
enforcement agencies and the prosecutors who put this case together: the FBI, the IRS and
members of the prosecution team, particularly AUSAs Lynn Helland, John Engstrom, Mike
Bullotta, Mark Chutkow, Robert Cares and David Gardey who have spent untold hours
working on this matter.


       Finally, I want to leave no doubt that the Department of Justice and this office, the
United States Attorney for the Eastern District of Michigan, will continue its vigorous efforts to
aggressively but fairly and thoroughly investigate and prosecute all political corruption,
regardless of where we find it and regardless of who it involves.
                                                U.S. Department of Justice

                                                Terrence Berg
                                                United States Attorney
                                                Eastern District of Michigan

                                                Suite 2001
                                                211 West Fort Street
                                                Detroit, Michigan 48226-3277

For Immediate Release:

Contact: Gina Balaya (313) 226-9758


June 26, 2009


Event: Guilty Plea
Defendant: Rogers Jennings


        DETROIT MAN PLEADS GUILTY TO SHOOTING AT DEA AGENT
A Detroit man pleaded guilty to assaulting a federal officer with a deadly weapon, United
States Attorney Terrence Berg announced today. Berg was joined in the announcement by
Thomas E. Brandon, Special-Agent-In-Charge of the Detroit office of the Bureau of Alcohol,
Tobacco, Firearms and Explosives (ATF).


       Rogers Jennings, 56, of Detroit admitted to firing two rounds from a .22 caliber Marlin
semi-automatic rifle at a black 2004 Chevrolet Blazer parked at the corner of Goulburn St. and
McNichols in Detroit. A DEA special agent was inside the vehicle conducting surveillance in an
investigation unrelated to Jennings. The shots hit the rear passenger-side quarter-panel of the
SUV. Ballistics analysis confirmed that the shots came from Jennings’ rifle, which he
purchased at a K-Mart in Detroit in 1988.


       The shooting took place at 9:42 p.m. on September 28, 2005. Jennings was intoxicated
at the time.
      “We are all grateful that no one was injured as a result of this defendant’s reckless use
of a firearm,” said U.S. Attorney Berg. “This case is yet another reminder that, given the grave
risk of even unintended injury, such weapons must be handled with extreme care.”


      Assault on a federal officer using a deadly weapon is punishable by up to 20 years in
prison. Sentencing is scheduled for October 1, 2009.


      The case is being prosecuted by Assistant United States Attorney Leonid Feller.
                                                 U.S. Department of Justice

                                                 Terrence Berg
                                                 United States Attorney
                                                 Eastern District of Michigan

                                                 Suite 2001
                                                 211 West Fort Street
                                                 Detroit, Michigan 48226-3277

For Immediate Release:

Contact: Gina Balaya (313) 226-9758


June 29, 2009


Event: Indictment
Defendant: B. Jay Rodriguez et al


                  THREE MEN ARRESTED IN DOG FIGHTING VENTURE
     Terrence Berg, United States Attorney for the Eastern District of Michigan, announced
that B. JAY RODRIGUEZ, 28, of Adrian, Michigan, MARTIN PHILLIPS, 34, of Bad Axe,
Michigan and JOSHUA GATES, 25, of Blissfield, Michigan, were indicted on charges of
Conspiracy to Sponsor and Promote an Animal Fighting Venture, Buying, Selling, Delivering or
Transporting Animals for Participation in an Animal Fighting Venture, Sponsoring or Exhibiting
an Animal in a Fighting Venture, and Promoting an Animal in a Fighting Venture.


      The indictment, the first of it’s kind in this district, charges the Defendants with engaging
in a conspiracy to promote and engage in an animal fighting venture in which American Pit Bull
Terriers were bred, sold, trained, and promoted for the purpose of engaging in dog fighting
matches. The Defendants are also charged with sponsoring dogs in fighting matches.
Defendants PHILLIPS has been involved in the dog fighting venture, "Pitformance Kennels,"
since as early as 2005 and has worked with co-Defendants GATES and RODRIGUEZ to
develop and promote the dog fighting enterprise. On June 17, 2009, federal agents together
with state and local law enforcement executed three simultaneous search warrants at the
Defendants' residences in Lenawee and Huron Counties. Officers seized a total of forty-nine
(49) dogs in the raids, along with training equipment, veterinary supplies, and underground dog
fighting publications. The United States Humane Society also assisted in the execution of the
search warrants.


       Acting United States Attorney Terrence Berg said, “This case represents a significant
step toward dismantling this underground network of animal cruelty."


       Berg praised the work of the East Lansing Office of the United States Department of
Agriculture, Office of Inspector General, Special Agents Robert Bell and Jeffrey Nickols as well
as the efforts of Lenawee and Huron Counties' state and local law enforcement agencies.
“Their dedication and skill led to the identification and apprehension of three dangerous
individuals. The USDA demonstrated professionalism and dedication in their aggressive and
thorough investigation of this case.”


       Gates appeared in federal court this afternoon and was temporarily detained pending a
hearing tomorrow. Phillips and Rodriguez are scheduled to make their initial appearance
tomorrow afternoon.


       If convicted of the charges, each could face a maximum penalty of five years in prison.


       Assistant United States Attorney Eaton Brown is prosecuting the case for the United
States.
                                                U.S. Department of Justice

                                                 Terrence Berg
                                                 United States Attorney
                                                 Eastern District of Michigan

                                                 Suite 2001
                                                 211 West Fort Street
                                                 Detroit, Michigan 48226-3277

For Immediate Release:
Contact: Gina Balaya (313) 226-9758
         Stephen Moore - IRS (313) 234-2410

June 29, 2009

Event: Guilty Plea
Defendant: Gary Heraud


         Bloomfield Business Owner Pleads Guilty to Tax Evasion Charges
Gary Heraud, 60, of Bloomfield, Michigan, pleaded guilty to two counts of tax evasion,
announced United States Attorney Terrence Berg.


       Mr. Berg was joined in an announcement by Special Agent in Charge Maurice M.
Aouate, Internal Revenue Service Criminal Investigation.


       According to court records, during the tax years 2003 and 2004, Heraud owned and
operated Communicom, Inc., Aceros Inc. and Precept, Inc., receiving over $700,000 in taxable
income. On his 2003 federal income tax return, he only reported interest income of $4,140
while reporting a business loss of $5,806. In 2004, Heraud failed to report any income, while
diverting funds through his corporate bank accounts. This resulted in a tax loss to the IRS of
over $197,000.


       United States Attorney Berg stated, "Our system depends on the voluntary compliance
of citizens with our shared responsibility to pay taxes. Prosecution of individuals who
intentionally and willfully file false tax returns is a vital element in maintaining public confidence
in our tax system."


         "Cheating on your taxes is the same as stealing," said Aouate. "We should not expect
the honest taxpayer to foot the bill for those who hide income from the IRS."
Tax evasion carries a maximum penalty of five years imprisonment and a fine of $250,000, per
count.


         A sentencing date was set for September 22, 2009 at 2:00 pm before United States
District Court Judge Paul D. Borman.




         United States Attorney Berg thanked the special agents from IRS Criminal Investigation
for their investigation of the case. The case is being prosecuted by the Assistant United States
Attorney Bruce C. Judge.
                                             U.S. Department of Justice

                                             Terrence Berg
                                             United States Attorney
                                             Eastern District of Michigan

                                             Suite 2001
                                             211 West Fort Street
                                             Detroit, Michigan 48226-3277

For Immediate Release:

Contact: Gina Balaya (313) 226-9758



June 29, 2009


Event: Sentenced
Defendant: Joshua Andrew Dorothy


     WARREN MAN SENTENCED TO 20-YEARS’ IMPRISONMENT ON CHILD
                             PORNOGRAPHY CHARGES
                     Babysitter Admits To Molesting Two-Year-Old
A 21-year-old Warren man was sentenced to 20-years’ imprisonment today, the
statutory maximum for distributing child pornography, United States Attorney Terrence
Berg announced. Berg was joined in the announcement by Andrew G. Arena, Special
Agent-In-Charge of the Federal Bureau of Investigation's Detroit field office.


      Joshua Andrew Dorothy was first identified by undercover FBI agents through
undercover Internet Relay Chats (IRC). Using a fictitious screen name, Dorothy sought
out others on the Internet claiming to have an interest in sex with children Dorothy also
stated that he had child pornography to trade. On June 2, 2008, Dorothy transferred
nearly 40 child pornography video files, depicting the sexual assault of children, to an
undercover FBI agent.
       During an exchange of text messages with the undercover agent on May 28,
2008, Dorothy claimed to have repeatedly sexually assaulted a two-year-old while
babysitting for her. During a post-Miranda interview following his arrest on August 6,
2008, Dorothy confirmed that he had engaged in sexual contact with the child.


       “This case demonstrates that we must vigilantly safeguard even the youngest
children from the pernicious desires of predators,” U.S. Attorney Berg said. “The
importance of undercover computer investigations is highlighted each time a child is
protected from this type of continuing abuse.”


       Dorothy pled guilty before the Honorable Gerald E. Rosen on January 26, 2009.


       This case was brought as part of Project Safe Childhood, a nationwide initiative to
combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by
the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's
Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal,
state and local resources to better locate, apprehend and prosecute individuals who exploit
children via the Internet, as well as to identify and rescue victims. For more information about
Project Safe Childhood, please visit www.projectsafechildhood.gov.



       The case was prosecuted by Assistant United States Attorney Leonid Feller.
                                                U.S. Department of Justice

                                                Terrence Berg
                                                United States Attorney
                                                Eastern District of Michigan

                                                Suite 2001
                                                211 West Fort Street
                                                Detroit, Michigan 48226-3277

For Immediate Release:
Contact: Gina Balaya (313) 226-9758
         Stephen Moore - IRS (313) 234-2410
         Richard Isaacson - DEA (313) 234-4310

June 30, 2009

Event: Guilty Plea
Defendant: Lee Chi Yee


           SOUTHFIELD JEWELER PLEADS GUILTY TO AVOIDING IRS
                         CASH REPORTING REQUIREMENTS
Lai Chi Yee, 56, of West Bloomfield, Michigan, owner of Golden Sun Jewelers, pleaded guilty
today to failing to file required Form 8300, reporting cash transactions over $10,000, to the
IRS, announced United States Attorney Terrence Berg. Yee also agreed to forfeit $1 million
dollars.


       Berg was joined in the announcement by Maurice M. Aouate, Special Agent in Charge,
Internal Revenue Service, Criminal Investigation and Robert Corso, Special Agent in Charge,
Drug Enforcement Administration.


       According to court records, Yee is the owner of Golden Sun Jewelers, a business
located in the Advance Building in Southfield, Michigan. Golden Sun Jewelers is a retail store
that manufactures and customizes luxury watches, among other items. Golden Sun Jewelers
is required to file Forms 8300 with the IRS for each cash payment of more than $10,000. In
June, 2008, Golden Sun Jewelers received $40,000 in cash from an undercover federal officer,
posing as marijuana dealer, for the purchase of a Rolex watch.       Yee received and counted
the cash during the sale of the watch. She knowingly and willfully failed to file a Form 8300.


       On June 16, 2009, Yee’s son, Gary Yee, 33, of West Bloomfield, Michigan, pleaded
guilty to one count of money laundering and also agreed to forfeiture $1 million dollars for his
role in laundering cash for narcotics traffickers.


       "Providing a hush-hush outlet for drug proceeds will draw the full attention of the IRS,”
said Aouate. "We will follow the money and make sure violators are prosecuted to the full
extent of the law."


       DEA Special Agent in Charge Corso stated that, “Unfortunately, illegal drug profits are
very enticing for some business owners, and the chance to get their hands on that dirty money
is hard to pass up. It comes as no surprise that drug traffickers were drawn to Golden Sun
Jewelers, who were more than willing to assist drug traffickers in hiding their illegal profits.”


       A sentencing date for Lai Chi Yee is set for November 5, 2009 at 2:00 pm, while Gary is
scheduled to be sentenced on October 29, 2009 at 2:00 pm before the Honorable Victoria A.
Roberts.


       U.S. Attorney Berg thanks IRS CI and DEA for their assistance in this investigation. The
case was prosecuted by Assistant U.S. Attorneys Bruce C. Judge and Philip Ross.

				
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