Federal Prosecutors Recommend Up To 28 Years in Federal Prison For Bobby Ferguson In Kwame Kilpatrick Case

October 3, 2013

CBS Detroit on October 3, 2013 released the following:

“DETROIT (CBS Detroit) Awaiting the final turn in his long road of disgrace, former Detroit mayor Kwame Kilpatrick is at the center of a sentencing report for cohort Bobby Ferguson where prosecutors are seeking a 14 to 28-year sentence.

The sentencing is set for October 10 in federal court in Detroit.

Ferguson is described in the report as the “catalyst at the center of an historic and unprecedented extortion scheme along with former Detroit mayor Kwame Kilpatrick.” He’s described as working “hand in glove” with Kilpatrick while he was in office.

The report says their scheme started back before Kilpatrick was even the mayor, when as a state representative he “stole several hundred thousand dollars” in grant money and used it to renovate Ferguson’s office and pay Carlita Kilpatrick for a job she didn’t do.

In March, Kilpatrick and Ferguson were convicted of racketeering conspiracy and other crimes. The government said Kilpatrick fixed contracts in a “pay to play” scheme, adding as mayor, Kilpatrick accepted bribes and abused a nonprofit fund, enjoying a posh lifestyle while his constituents suffered.

Kilpatrick has said his trial was unfair.”

Government’s Sentencing Memorandum as to Defendant Bobby W. Ferguson

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Appeal

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To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Fifteen Individuals Indicted in an Alleged Large-Scale Federal Drug Conspiracy Case

January 11, 2012

The Federal Bureau of Investigation (FBI) on January 10, 2012 released the following:

“Fifteen individuals have been indicted by a federal grand jury in Detroit on federal charges, United States Attorney Barbara L. McQuade announced. Ms. McQuade was joined in the announcement by Special Agent in Charge Robert L. Corso, Drug Enforcement Administration; Special Agent in Charge David McCain, Bureau of Alcohol, Tobacco, Firearms, and Explosives; Special Agent in Charge Andrew Arena, Federal Bureau of Investigation; and Special Agent in Charge Erick Martinez, Internal Revenue Service-Criminal Investigation.

Indicted were Orlando Ricardo Gordon, 32, of Franklin; Vince Jerome Shivers, 42, of Southfield; Derrick Arnold Terry, 51, of Detroit; Danta Shamu-Parker Johnson, 34, of Detroit; Darren Davon Terry, 35, of Detroit; Trenton Jordan Obamwonyi, 27, of Detroit; Tamiko Mel-Lang Hodo, 36, of Detroit; Anthony Wayne Hall, 46, of Detroit; Anton Jamaill Harris, 32, of Detroit; Ervin Kenneth Vincent, 24, of Inkster; Darnell Darryl Easterling, 48, of Detroit; Courtney Deon Shafi Strickland, 36, of Detroit; Benjamin Isaac Carter, 39, of Detroit; Erik Lee Ross, 34, of Sterling Heights; and Allen Corey Terry, 47, of Farmington Hills.

As alleged in the indictment, the conspiracy lasted for years, dating back to 2008, and involved in excess of 1,000 kilograms of marijuana, five kilograms of cocaine, and 280 grams of crack cocaine. Some of the defendants are also charged with being felons illegally possessing firearms. The narcotics trafficking conspiracy carries possible sentences of 10 years to life in prison and a $10 million fine, and the felon in possession charges carry possible sentences of up to 10 years of prison.

The investigation involved multiple federal agencies, including DEA, ATF, FBI, and IRS. The investigation included seizures of large sums of U.S. currency, including a seizure of more than $500,000 from a residence in Franklin, Michigan, large quantities of drugs, including a seizure of over 1,000 kilograms/2,200 pounds of marijuana, and multiple firearms.

United States Attorney McQuade stated that, “Large-scale drug trafficking and accompanying gun crimes create danger and fear in our neighborhoods. The coordinated efforts of multiple law enforcement agencies helped to dismantle this conspiracy.”

ATF Special Agent in Charge David McCain said, “Narcotics trafficking along with violent firearm activity destroys the families and neighborhoods in our communities. ATF along with its state, local, and federal partners will continue to aggressively pursue those violent individuals and organizations that cripple our communities with crime.”

DEA Special Agent in Charge Robert L. Corso said, “Today’s arrests are significant. These individuals directed a major marijuana and cocaine trafficking ring that operated throughout southeast Michigan. The dismantling of this organization has halted the flow of hundreds of thousands of dollars worth of illegal drugs into metropolitan Detroit. This investigation exemplifies the strong collaborative effort that exists between DEA and our federal, state, and local law enforcement partners, and is a positive step towards making our community safer for everyone.

FBI Special Agent in Charge Andrew G. Arena said, “Narcotics trafficking continues to plague this region and directly contributes to violence on our streets. The FBI will continue to partner with federal, state, and local law enforcement to address these issues.”

IRS Special Agent in Charge Erick Martinez said, “This indictment illustrates the seriousness behind prosecuting drug trafficking crimes. The role of IRS-CI is to take the profit out of these illegal organizations. Drug dealers pollute our neighborhoods with no regret as their actions are only fueled by greed. The seizure of their illegal proceeds, drugs, and weapons brings us one step closer to justice.”

The Detroit Police Department, the Franklin Police Department, the Troy Police Department, the Novi Police Department, the Warren Police Department, the Michigan State Police, and the U.S. Marshals Service also assisted in the investigation of the case.

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

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


FBI busts suspected Detroit gang

December 17, 2011

ClickOnDetroit.com on December 16, 2011 released the following:

Authorities say ‘The Hustle Boys’ involved in drugs, violence

DETROIT – The FBI has busted a dangerous Detroit gang.

Authorities say “The Hustle Boys,” sold drugs and commonly engaged in violence with rival gangs.

10 members of the gang have been indicted including a man by the name of Deonte Morris, who is considered to be the ring leader of the group.

The gang is accused of running a criminal enterprise in the city of Detroit for the past four years. They sold prescription medication oxycotin and marijuana. Not only did they operate in Detroit, but they also did business in Ohio and West Virginia. In many cases they used women to deliver the drugs.

“These are gang members who were under investigation for a long time. Our streets are safer now because they are off the streets,” said FBI spokesperson Simon Shaykhet.

Two women have also been charged in the case. The suspects are expected to appear before a judge Friday in federal court.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Edward Schlacht Charged for Allegedly Hiring Illegal Aliens

November 29, 2011

U.S. Immigration and Customs Enforcement (ICE) on November 29, 2011 released the following:

“DETROIT — A manager at a specialty pallet and box manufacturing company in northwest Detroit was arrested Tuesday by agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) on criminal charges of knowingly accepting false documentation in the course of hiring undocumented workers.

Edward Schlacht, 48, a supervisor at Grigg Box Company in Detroit, was taken into custody Tuesday morning without incident by ICE HSI special agents.

“Employers who evade the law not only fuel the demand that is responsible for much of the country’s illegal immigration, but their actions also hurt lawful workers who are seeking jobs in this challenging economy,” said Brian M. Moskowitz, special agent in charge of ICE HSI in Detroit. “Criminal prosecutions are just one of many tools HSI is using to reduce the demand for illegal employment and protect job opportunities for the nation’s lawful workforce.”

As part of the enforcement action, agents also executed a federal search warrant at the business seeking evidence in this ongoing investigation into the company’s hiring practices. Schlacht is charged in a criminal complaint with continuing to employ unauthorized aliens. The arrest is the culmination of an investigation that began in February when an ICE HSI audit of the company’s hiring records identified 35 employees who used suspected counterfeit documents to obtain their jobs.

According to the court documents, after ICE HSI notified the company about the suspicious documents, Grigg Box Company sent a written reply advising the employees in question had been terminated. Subsequently, investigators conducting surveillance of the premises, observed several of the “terminated” employees continuing to work at the company. Additionally, through the use confidential informants, ICE HSI special agents recorded Schlacht in the process of hiring two individuals who admitted their documents were counterfeit and had been purchased. This individual was later paid by Schlacht in the form of an official payroll check from the company.

Schlacht is expected to make an initial appearance in federal court Tuesday afternoon. The charges carry a maximum penalty of up to ten years in prison and a fine of up to $250,000.

Employers are required to complete and retain a Form I-9 for each individual they hire for employment in the United States. This form requires employers to review and record the individual’s identity and employment eligibility documents and determine whether the documents reasonably appear to be genuine and related to the individual. Additionally, an employer must ensure that the employee provides certain information regarding his or her eligibility to work on the Form I-9.

Nationally in Fiscal Year (FY) 2011, ICE:

  • Conducted 2,496 I-9 audits, up from 503 in FY 2008;
  • Initiated 3,291 worksite enforcement cases, up from 1,191 in FY 2008;
  • Criminally arrested 221 employers, up from 135 in FY 2008;
  • Issued 385 Final Orders for $10,463,987 in fines, up from 18 Final Orders for $675,209 in fines in FY 2008; and
  • Debarred 115 individuals and 97 businesses, compared to 0 individuals and 0 businesses in FY 2008.”
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    Douglas McNabb – McNabb Associates, P.C.’s
    Federal Criminal Defense Attorneys Videos:

    Federal Crimes – Be Careful

    Federal Crimes – Be Proactive

    Federal Crimes – Federal Indictment

    Federal Crimes – Detention Hearing

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    To find additional federal criminal news, please read Federal Crimes Watch Daily.

    Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

    The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Eighteen Charged for Alleged Medicare Fraud Schemes in Detroit Involving $28 Million in False Billings

September 1, 2011

The Federal Bureau of Investigation (FBI) on September 1, 2011 released the following:

“DETROIT—Eighteen individuals were charged in court documents unsealed today and yesterday in the Eastern District of Michigan for their participation in a series of separate Medicare fraud schemes involving home health and psychotherapy services, announced the Department of Justice, the Department of Health and Human Services (HHS), the FBI and the HHS Office of Inspector General (HHS-OIG).

According to court documents unsealed today and yesterday in U.S. District Court in Detroit, the separate schemes allegedly involved a total of more than $28 million in fraudulent claims submitted to Medicare for services that were medically unnecessary and/or never provided. Fifteen of the defendants were arrested this morning, one defendant was arrested in July 2011, and two defendants remain at large. In addition, law enforcement agents today executed search warrants at 11 locations and seizure warrants of 28 bank accounts related to the alleged fraud schemes.

Including these charges, Medicare Fraud Strike Force operations in Detroit have charged a total of 138 individuals in cases involving approximately $148 million in fraudulent billings to Medicare.

“Today we have charged physicians, nurses, clinic owners and other medical professionals for submitting millions of dollars in false claims to Medicare,” said Assistant Attorney General Lanny A. Breuer of the Criminal Division. “According to court documents, these defendants paid kickbacks to beneficiaries and others, and falsified medical documents in order to deceive the Medicare program. As our strike force efforts have consistently shown, we will not allow criminals to steal from government health care programs.”

“Health care providers should be aware that the days of stealing from Medicare with impunity are over,” said U.S. Attorney Barbara McQuade of the Eastern District of Michigan. “We are relentlessly investigating and prosecuting those who seek to profit from false claims for services that are medically unnecessary or, in some instances, not provided at all.”

“Health care fraud affects every American,” said FBI Special Agent in Charge Andrew G. Arena. “As Americans live longer, health care costs are expected to rise. The FBI, together with its federal, state, and local partners, is working aggressively to pursue health care fraud criminals and bring them to justice.”

“The Medicare Fraud Strike Force in Detroit continues to demonstrate a concentrated and sustained effort in combating health care fraud,” said Lamont Pugh III, HHS-OIG Special Agent in Charge of regional operations. “The Office of Inspector General will continue to work with our strike force partners to focus a spotlight on those who attack the Medicare program and ensure that they are held accountable.”

“These arrests are good news for American taxpayers and a powerful warning to health care ripoff artists,” said Donald M. Berwick, M.D., Administrator of the Centers for Medicare & Medicaid Services. “In this instance, the system worked as it should: Medicare detected suspicious behavior and got the information quickly to law enforcement for appropriate follow-up. Together with our law enforcement partners, we helped minimize the theft of taxpayer dollars and maximize criminal consequences to thieves. CMS will continue to relentlessly pursue fraudsters across the country and aggressively feed leads to our law enforcement partners.”

Fourteen individuals are charged in one indictment with conspiracy to commit health care fraud for their roles in a $14 million scheme to defraud Medicare by submitting fraudulent claims for home health care services. The defendants include three physicians, four clinic owners and managers, two clinic employees, one nurse, and four physical therapists and physical therapy assistants. According to court documents, the conspiracy was operated out of multiple home health agencies located in Livonia, Mich., including Physicians Choice Home Health Care LLC, First Care Home Health Care LLC, Quantum Home Care Inc. and Moonlite Home Care Inc.

In a separate complaint unsealed today, a physician and two other individuals are charged with health care fraud and the submission of false claims in connection with an approximately $11.5 million scheme to defraud the Medicare program. The scheme allegedly involved false billings for individual and group psychotherapy services at two clinics located in Detroit, Quality Recreation and Rehabilitation Inc. and Procare Rehabilitation Inc. According to court documents, the defendants billed Medicare for services that were medically unnecessary and/or never provided.

In another indictment unsealed yesterday, the owner of a medical clinic located in Southfield, Mich., was charged with conspiracy to commit health care fraud, health care fraud and identity theft for a scheme allegedly involving $2.9 million in fraudulent billings to Medicare. According to court documents, the clinic owner is alleged to have used the identities of Medicare providers and beneficiaries to bill for psychotherapy services that were medically unnecessary and never performed.

Defendants charged include: Gerald R. Funderburg Jr., 31, of Southfield, Mich.; Marcus Jenkins, 49, of Farmington Hills, Mich.; Elizabeth Jenkins, 47, of Farmington Hills; Dr. Alphonso Berry, 50, of Orchard, Mich.; Tausif Rahman, 36, of Canton, Mich.; Zahir Yousafzai, 41, of Canton, Mich.; Javed Rehman, 48, of Farmington Hills; Muhammad aka “Sib” Ahmad, 33, of Ypsilanti, Mich.; Jawad Ahmad, 41, of Ypsilanti, Mich.; Dr. Dwight Smith, 58, of Detroit; Dr. Paul Kelly, 74, of Bath, Mich.; Rehan Khan, 38, of Canton, Mich.; Nabeel Shaikh, 29, of Wixom, Mich.; Janaki Chettiar, 36, of Farmington Hills; Jigar Patel, 27, of Madison Heights, Mich.; Anthony Parkman, 40, of Southfield; Hetal Barot, 28, of Canton; and Srinivas Reddy aka “Dr. Reddy”, 35, of Bloomfield Hills, Mich.

The charges were announced by Assistant Attorney General Breuer of the Criminal Division, U.S. Attorney McQuade of the Eastern District of Michigan, Special Agent in Charge Arena of the FBI’s Detroit Field Office and Special Agent in Charge Pugh of the HHS-OIG Office of Investigation.

The cases are being prosecuted by Trial Attorneys Gejaa T. Gobena and Catherine K. Dick of the Criminal Division’s Fraud Section. The investigations were conducted jointly by the FBI and HHS-OIG, as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Eastern District of Michigan and the Criminal Division’s Fraud Section.

Since their inception in March 2007, the strike force operations in nine districts have charged more than 1000 individuals who collectively have falsely billed the Medicare program for more than $2.3 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

Indictments and criminal complaints contain merely charges and defendants are presumed innocent until proven guilty.”

To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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