Articles Posted in White Collar Crimes

In September of 2011, Romulus former police chief Michael St. Andre, five detectives and St. Andre’s wife were hit with numerous charges in a corruption case that involved prostitution, embezzlement, misconduct in office, and a slew of other charges. Just over one year later, the 7 accused face trial in Detroit’s 3rd Circuit Court.

St. Andre, his wife Sandra, Larry Droege, Donald Hopkins, Sgt. Richard Balzer, Richard Landry, and Jeremy Channells face a total of 40 felony charges, the most serious of which could potentially land some of the accused in prison for 20 years if convicted. Charges related to operating a criminal enterprise are the most serious; St. Andre faces three possible 20-year felonies after racking up a total of 10 charges.

The department was supposedly conducting a “covert” vice investigation into Subi’s Place in Southgate, and the Landing Strip Bar in Romulus, both erotic clubs according to news reports. Prosecutors claim that over the course of the alleged investigation, police officers fabricated and inflated expenses, purchased prostitutes and skimmed property that was seized.

A release issued on Wednesday, September 26th by the Wayne County Prosecutor’s Office states that numerous unexplained cash deposits were made into the St. Andres’ personal bank accounts between January 2006 and September 2011, deposits which were far beyond their incomes. They are also accused of using city assets specified for police for their own personal gain. Michigan state police, the FBI and prosecutor staff members conducted the investigation into the police department after being alerted by a “high-ranking” Romulus whistleblower.

Michael St. Andre faces charges of conducting criminal enterprise, criminal enterprise-conspiracy, uttering and publishing, failure to file/false return on taxes, obstruction of justice, receiving and concealing stolen property over $20,000, embezzlement by public official over $50 and misconduct in office among other charges. His wife faces a total of 4 charges.

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One of the biggest headlines in the news in recent days has been the Kwame Kilpatrick corruption trial taking place in Detroit. The former mayor, his father Bernard, Kilpatrick “pal” Bobby Ferguson and Victor Mercado have been accused of devising a corruption scheme meant to enrich their own lives. Attorneys for the men asked for a change of venue because of intense media attention and the possibility of its influence on the jurors, however Judge Nancy G. Edmunds denied the change of venue.

Ultimately, prosecutors allege that the group known as “Kilpatrick Enterprise” by authorities have intimidated people and essentially hidden a great deal of money through their scheme. Kwame Kilpatrick, his father, Bobby Ferguson and ex-city water department director Victor Mercado are accused of funneling work to Ferguson through the shake down of contractors and rigged water contracts. It is expected that the trial will last as long as four months.

The complaint against Kilpatrick alleges operation of an illegal criminal enterprise which involves mail and wire fraud, accepting bribes and kickbacks, contract rigging and extortion among other charges.

Opening statements were scheduled for Friday September 21st at 9 a.m. in the U.S. District Court for the Eastern District of Michigan. On Tuesday, Bobby Ferguson was cornered by testimony given by a college friend of Kilpatrick’s and a Detroit police officer, who claimed that Ferguson made threats to his family while the other accused Ferguson of giving him $90,000 cash that was to be given to Kilpatrick. Michael Fountain, a Detroit police officer, testified that threats were made to his children and wife by Ferguson over illegal dumping tickets.

With almost daily headlines coming out in newspapers, this trial is sure to be one of great interest in the Detroit area in the coming weeks.

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John “Jason” Walaskay, a 41-year-old Whitmore Lake, Michigan man stands accused of embezzling cash from a Kona coffee grower; he has been extradited to Hawaii to face charges.

According to news reports, Walaskay was arrested on August 2nd in suburban Detroit at the Grosse Pointe Yacht Club. Walaskay was appointed as comptroller of the yacht club; it was his second day in that position when he was arrested on a warrant filed with the National Crime Information Center by local authorities.

A Kona grand jury had indicted Walaskay on June 18th on several charges including five counts of second-degree theft and two counts each of first-degree theft and use of a computer in committing a second crime. Cathy Kleger, a bookkeeper at Kona’s Best Natural Coffee, said that Kona lost almost $200,000 because of the offenses allegedly committed by Walaskay, who was employed as comptroller at the company. The alleged embezzlement occurred between March of 2009 and April of 2010; news reports state that Walaskay may face as many as 75 years in prison.

On Wednesday August 29th, Walaskay pleaded not guilty to all charges before Hilo Circuit Judge Glenn Hara. He is ordered to stand trial before Kona Circuit Judge Elizabeth Strance on October 3rd. Belinda Castillo, a Deputy Public Defender appointed to Walaskay’s case, requested that the defendant’s bail be reduced from $100,000 to $10,000. According to Castillo, Walaskay was questioned about the embezzlement issues when he lived in Hawaii several years ago, and was cooperative with police. Walaskay moved to Michigan recently after assuming that nothing became of an investigation into the allegations; he had no prior criminal history. The judge refused to lower bail, which remained at $100,000.

Joseph Fagundes III, attorney for Kona’s Best Natural Coffee, stated in news reports that payments which were supposedly being made to vendors and specific creditors were actually being made to Walaskay, and that the accused was under surveillance of federal authorities for a time.

Embezzlement is a serious criminal offense which leaves the accused facing severe penalties if convicted. Michigan criminal defense lawyers know that without capable legal representation, individuals convicted may face substantial fines, prison time and a permanent criminal record. Essentially, your career, reputation and future are at stake.

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In October of 2011, 53-year-old Emilio Haber pleaded guilty to a charge of conspiring to commit health care fraud. Haber was sentenced on Monday, July 23rd, to five years in prison and three years of supervision once his prison time is served. U.S. District Judge Patrick Duggan of the Eastern District of Michigan in Detroit handed down Haber’s sentence.

Haber will also be required to forfeit his bank account assets, which total approximately $99,000. He, along with co-defendants in the case, will also pay $6.4 million in restitution.

Michigan fraud defense attorneys know the serious consequences those accused of fraud related offenses face if convicted, and that it takes a skilled lawyer with expertise in complex financial matters to provide a solid, effective defense.

Haber allegedly bilked Medicare by paying some of his patients to fake ailments. Haber owned RiteCare LLC, a clinic located in Metro Detroit according to court records and testimony. According to these records, recruiters were paid as much as $150 to find individuals who for $75 would fake certain symptoms at the RiteCare clinics. Between 2007 and 2009, the fraudulent RiteCare scheme resulted in $6.3 million in Medicare payments of the $8.5 million in claims submitted.

According to the FBI website, Haber was ordered to pay $6,341,000 in restitution along with his co-defendants. The website also claims that Haber oversaw the fraudulent Medicare schemes at two of his clinics, and that he billed Medicare for tests and services which were not necessary, many of them nerve conduction studies.

The case against Haber was investigated by HHS-OIG (Dept. of Health and Human Services, Office of the Inspector General) and the Federal Bureau of Investigations. Haber’s financial future once released from prison appears bleak, considering the millions in restitution he and his co-defendants face.

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