Scheme Stretched from Texas into Colorado, Indiana, Wisconsin, Ohio and Michigan
GRAND RAPIDS, MICHIGAN — Antonio DeJesus Perez-Martinez, 44, formerly of Austin, Texas, was sentenced today to serve 144 months, or exactly 12 years, in the Federal Bureau of Prisons for his leadership of a scheme that involved the installation of hidden data-skimming devices inside gas pumps, encoding credit-account data that was harvested by those devices onto "cloned" credit cards, and use of the cards to bulk-buy gift cards and prepaid debit cards at self-checkout lanes of major retailers. Perez-Martinez was convicted of conspiracy to commit wire-fraud, credit-account fraud, and aggravated identity-theft after a trial in U.S. District Court during January 2017, and he is the last of eight defendants charged in a long-running investigation that was conducted by the Lansing office of the FBI, with assistance from the U.S. Postal Inspection Service, the Grand Rapids Metro Fraud and Identity-Theft Team, and the Grand Ledge Police Department.
The evidence at trial established that Perez-Martinez, a Cuban citizen and lawful permanent resident of the United States ("green-card" holder), recruited numerous recently-arrived Cuban citizens – all of whom had entered the United States in 2014 under a special "parole" program that admitted Cuban citizens who presented themselves to immigration authorities at the border – into a fraud scheme that initially involved obtaining compromised credit-account data from illicit websites. During the Summer of 2015, Perez-Martinez switched from acquiring account data online to using "skimming" devices that his accomplices secretly installed inside gas-pumps, and also extended his group’s operation into West Michigan. Skimming devices capture the account data of any card used to purchase gas without interfering with the purchase, leaving the account holder unaware that the data has been compromised until it has been re-encoded onto cloned cards and used to make unauthorized purchases.
Perez-Martinez’ sentence is the seventh prison term imposed in the case: Raul Gonzalez Falcon (29), Yunier Carballo-Pupo (34), Manuel Perez-Cabrera (38), and Michel Velazquez-Gregori (30), none of whom had prior criminal records and all of whom agreed to plead guilty and to cooperate with the investigation, all received sentences of 21 months in prison. Pedro Sanchez-Pupo (32) received a sentence of 37 months. A seventh defendant, Juan Estrada-Galvez, was allowed to plead guilty to a state misdemeanor in Kent County when the investigation determined that his involvement in the scheme had been minimal.
"Perez-Martinez has learned the hard way that West Michigan is the wrong place to visit if you’re engaged in a gas-pump skimming scheme," stated Acting U.S. Attorney Andrew Birge. "The odds of getting caught here are good, and if you are caught, then your case will be prosecuted in Federal court and the investigative resources of the FBI will be brought to bear against you. That applies both to those who are caught in the act and to people like Perez- Martinez who might never set foot in West Michigan, but who send their subordinates here. The long arms of federal law caught Perez-Martinez. And those arms aren’t letting go until he serves his time."
"The guilty verdict and subsequent lengthy sentence in this case demonstrate that criminals who engage in identity theft will be held accountable for their crimes. The FBI, along with our local, state and federal law enforcement partners, is committed to safeguarding the public against such crimes and working to ensure the American public is secure in its financial transactions," said David P. Gelios, Special Agent in Charge of the Detroit Division of the FBI.
The case was prosecuted by Assistant U.S. Attorney Hagen W. Frank.
GRAND RAPIDS, MICHIGAN – Lawrence Gerard Nassar, 54, of Holt, Michigan, was sentenced to 60 years in federal prison for child-pornography and obstruction-of-justice offenses, U.S. Attorney Andrew Birge announced today. U.S. District Judge Janet T. Neff ordered the federal sentence to be served consecutive to the sentences he receives in state court. In addition to the prison term, Nassar must also register as a sex offender, and, if released from prison, he will be subject to a lifetime term of supervised release.
In July of this year, Nassar pleaded guilty in federal court to receiving child pornography in 2004, possessing child pornography from 2003 to 2016, and destroying and concealing evidence in 2016 when he believed, correctly, that ongoing investigation by law enforcement would reveal his child-pornography activities. As part of a plea agreement, Nassar agreed not to oppose a sentencing enhancement for engaging in a pattern of activity involving the sexual abuse or exploitation of minors. That enhancement, based on his extensive history of personally sexually molesting minors, increased his advisory U.S. Sentencing Guideline range by over 70%. This is the same enhancement that would have applied had he been convicted of additional federal charges related to his hands-on misconduct, such as for traveling interstate with intent to engage in illicit sexual conduct. By the time of his sentencing, Nassar faced an advisory guideline range of 30 years to life in prison, capped by the combined statutory maximum for the three counts of 60 years.
Dozens of victims participated in the federal sentencing proceeding by submitting written victim-impact statements to the Court. The victims wrote about the pain and trauma Nassar caused them, their shattered trust and innocence, the enduring impact this conduct has had on their lives, and their desire to see justice. The victims called on the Court to severely punish Nassar and protect others from further acts of sexual predation.
In announcing the sentence, Judge Neff left no doubt that “maximum potential penalties are in order here.” She found the case “unique.” The images Nassar collected were numerous and “like none other that I’ve seen.” She expressed dismay that Nassar was a doctor and was troubled by the thought that he might have “felt omnipotent” for getting away with sexually assaulting his victims when their mother was in the room. “I am a mom. I cannot imagine [the anguish those mothers must feel].” She chastised Nassar for violating the most basic tenant of medicine – “Do no harm.” Finally, the Judge expressed deep concern for the victims’ sense of self-worth that was destroyed. She concluded that Nassar “is, was, and will be a danger to children.” “It is through consecutive sentencing that I can protect young children.”
Following the sentencing, U.S. Attorney Birge said: “Today was a day of reckoning for Larry Nassar. He more than deserves this punishment for what he did. He consumed child pornography on a massive scale. We found 37,000 images of child pornography on his computers. Insatiable hunger of that nature simply encourages those who produce such images to continue to sexually exploit children. Compounding his danger to the public, Nassar was an insidious hands-on child predator in his own right. He took advantage of family friendships. And he treated his license to practice medicine as a license to sexually molest children. Thanks to the brave victims who came forward, we learned the full scope of his depravity. The breadth and dark depth of his heinous acts are extraordinary.”
U.S. Attorney Birge added: “My heart goes out to the victims-- those in the images and those he personally sexually molested. With today’s sentencing, I hope his victims find a sense of renewed self-worth in knowing their role in this outcome. And I hope they and the public find some measure of solace and reassurance in knowing that Nassar has been held accountable for his actions. Anyone who exploits children will be found out and held accountable regardless of their position or station in life.” U.S. Attorney Birge then expressed his thanks to the victims for making the outcome possible in this case and he thanked the FBI and Michigan State University Police for their efforts in support of the charges.
“Today’s sentencing represents an important achievement as we take another step in this long process of holding Nassar accountable for his shocking predatory acts of child sexual abuse and exploitation,” said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. “I want to thank those involved at the FBI in Detroit and Los Angeles, Michigan State University Police Department, and the U.S. Attorney’s Office for their tireless work to bring Nassar to justice. This punishment of a man who once held a position of trust and enjoyed the trust and respect of many should serve as a warning to those who prey upon and sexually exploit children that there will be severe consequences for crimes of this nature. My thoughts are with all the victims whose lives have been forever impacted.”
Michigan State University Police Chief Jim Dunlap commented that: “The Michigan State University Police Department appreciates the effective collaboration with the FBI and the U.S. Attorney’s Office to achieve a measure of justice for the survivors.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Detroit and Los Angeles Divisions of the Federal Bureau of Investigation (FBI) and the Michigan State University Police Department (MSUPD) investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
LANSING – Acting U.S. Attorney for the Western District of Michigan Andrew Birge announced today that Matthew Mencarelli, 39, of Belmont, Michigan was sentenced to 97 months in prison for a wire fraud scheme in which he offered phony investments in nonexistent “fiber optic cable” and other infrastructure projects. He used the money to finance his lifestyle and make Ponzi-type payments to earlier investors. U.S. District Judge Hala Y. Jarbou, who imposed the sentence, found Mencarelli responsible for causing $1,615,180 in loss to 15 victims of the scheme. “Those who steal from others to line their own pockets will be held accountable,” Birge said. “We are committed to combatting financial fraud and white-collar crime and would like to thank the victims who came forward to report it.” “Today’s sentencing of Matthew Mencarelli sends a stern message that fraudulent investment schemes will not be tolerated in Michigan,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI remains committed to investigating and deterring financial fraud that harms our community. We appreciate the Grand Rapids Police Department for their invaluable partnership and the U.S. Attorney’s Office of the Western District of Michigan in bringing Mr. Mencarelli to justice.” Court records indicate that Mencarelli, who owned a contracting business called Matthew’s Woodworking LLC, began soliciting fictitious investments in 2018 when his business was suffering from financial difficulties and unsatisfied customers. He approached friends and acquaintances from his family’s yacht club and county club and told them he had lucrative contracts with local governments in Traverse City to install fiber optic cable or other infrastructure projects. He told them he needed money to maintain a “surety bond” in connection with the contracts and guaranteed high rates of return if the investors loaned him money. In truth, there were no such contracts and Mencarelli used the money instead to finance his lifestyle, pouring at least $400,000 into a custom-built home. He also used payments from newer investors to pay off older investors. When it came time to pay investors back, he lied, bullied, and threatened them and manufactured false documents to maintain the charade. The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Clay Stiffler.# # #
Man convinced 12-year-old child to send him sexually explicit photos and videos MARQUETTE – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Kelton Salowitz, 19, of Curtis, Michigan, was sentenced to 15 years in federal prison followed by 10 years of supervised release for sexually exploiting a 12-year-old child. “We cannot undo the harm that Mr. Salowitz inflicted on children, but today’s sentence is a measure of justice for the victims and an important step to protect the community,” said U.S. Attorney Mark Totten. “This case is also a reminder of the dangers that lurk online. Without sufficient guardrails, smartphones can give criminals across the United States and around the world access to our children, even inside the safety of their homes. Educate your kids, monitor their online activity, and let them know they can also talk to you if they mess up.” Salowitz pleaded guilty to repeatedly asking a 12-year-old girl, who was living in a different state, to send him sexually explicit photos and videos. He communicated with the child on his smartphone through the application Discord. One of the videos recovered from defendant’s phone was a recorded livestream in which the child performed sexual acts at the instruction of Salowitz. In addition, Salowitz requested, but did not receive, similar content from another 12-year-old, and investigators recovered a collection of child pornography on his phone which included videos of men sexually assaulting children. Homeland Security Investigations (HSI) provides the following Top 10 Tips2Protect for parents to protect their children from online predators:Start an open, two-way conversation with your child.Password-protect or control access to your child’s app store and gaming downloads.Set time and area limits for use of devices and set device check-in times.Set all apps, games and devices to private.Turn off location data services on social media and nonessential apps.Talk about data permanency. Online data can last a lifetime.Create a contract with your child regarding online behavior.Know your child’s friend lists. Remove strangers.Warn your child that they should never leave a game to chat with someone they don’t know on a different platform.Do not delete messages, images or videos from predators and do not forward any sexually explicit images or videos. Save usernames, screenshots and images or videos as evidence for law enforcement to collect directly from the device. Further information for parents about how to protect their children, what to share with them, and the signs of online sexual exploitation are available on the agency’s Know2Protect (K2P) website. The Mackinac County Sheriff’s Office and the Department of Homeland Security, Homeland Security Investigations, investigated this matter. This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, the Internet Crimes Against Children Task Force (ICAC), and federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood educate local communities about the dangers of online child exploitation and teach children how to protect themselves. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.# # #
Case Reflects Grim Reality: Gun Violence is Now the #1 Cause of Death for Kids GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Avis Coward, 44, of Lansing, was sentenced to 120 months in federal prison for being a felon in possession of firearms. Coward previously pleaded guilty to illegally possessing two guns. A two-year-old child found one of the guns in a car, suffered a gunshot wound and later died. Coward had previously been convicted of drug trafficking, carrying a concealed weapon, carjacking, and brandishing a weapon during the commission of a crime of violence. “This two-year-old child is dead because Avis Coward flouted the law,” said U.S. Attorney Mark Totten. “And then – as if that was not enough – Coward attempted to hide his crime and evade justice.” Totten continued: “This case painfully represents a grim statistic that hangs over the nation: gun violence is now the #1 cause of death for our youngest Americans, ages 0-19. None of us should get used to this new reality. My team and I will use every tool we have to punish criminals who put our kids in harm’s way.” Two other Lansing residents were also charged in the indictment. Emma Huver pleaded guilty to possessing a pistol that was in the car and was sentenced to 60 months in federal prison. Gina Schieberl pleaded guilty to tampering with evidence and is scheduled to be sentenced on October 21. On October 24, 2023, Coward got out of a car at a Lansing gas station and went inside, leaving a two-year-old child and the child’s mother, Emma Huver, in the car. The child found Coward’s gun while playing in the car, then shot and killed himself. Surveillance video showed a bullet hole appear in the car window a minute after Coward exited the vehicle. Huver got out of the car holding her child, who had blood on his face from the gunshot wound. As she did so, Coward’s gun fell out of the car. Huver handed the child to Coward, who then passed the child to a third person who took the victim into the gas station and attempted to control the bleeding until medical personnel arrived. Coward returned to the car, picked up the gun off the ground, and put it back in the car. The surveillance video also showed Coward use his hand to break out the front passenger window, which had the bullet hole, in his first effort to destroy evidence. Coward then drove away. The child later died from his injuries.
While in jail, Coward made several phone calls in an attempt to further hide evidence. Police later found the car, which was found burned-out and abandoned in a field in Lansing, and the barrel of Coward’s .45 caliber Springfield Armory semiautomatic pistol, which was hidden in the wall of a house in Lansing. The rest of the gun has not been recovered. Further details are available in the Government Response to Defendant’s Sentencing Memorandum, which is attached to this press release.
“This tragedy occurred because an individual who was prohibited from owning a firearm illegally possessed one, leading to a devastating outcome,” said Chief Rob Backus, Lansing Police Department. “Our thoughts are with the family affected by this loss. We appreciate U.S. Attorney Mark Totten and his team for their dedication in seeing this case through and ensuring accountability.” Gun violence is an acute problem across the United States. According to the Centers for Disease Control and Prevention, the U.S. firearm homicide rate in 2021 was the highest documented since 1993. While the numbers have declined since 2021, no level of violence is acceptable. Resources and information on the safe storage of firearms can be found by reviewing the U.S. Department of Justice Safe Storage of Firearms guide, Centers for Disease Control and Prevention fact sheet, and the Bureau of Alcohol, Tobacco, Firearms and Explosives pamphlet. Anyone who possesses a gun must follow all local, state, and federal laws. This case was investigated by the Lansing Police Department, Michigan State Police, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.###
GRAND RAPIDS, MICHIGAN — Duane William Millar, age 60, of East Lansing, Michigan, was sentenced today to seven years in federal prison, announced Acting U.S. Attorney Andrew Birge. Millar, a former teacher with the Howell Public School District, pleaded guilty to receipt of child pornography last year.
In announcing the sentence, Chief U.S. District Judge Robert J. Jonker commented on Millar’s large collection of 40,000 images of child pornography, which dated back to 2004 and included depictions of sadomasochistic conduct. Judge Jonker expressed his concern that Millar exploited his position of trust with his students. Following his term of incarceration, Millar will serve seven years on supervised release and was ordered to contribute $5,000 to the Justice for Victims of Trafficking Act Fund. The Fund provides financial support for victims of child pornography, sex trafficking, and child sexual abuse. He must also register as a sexual offender.
Acting U.S. Attorney Birge noted that "a case that involves a teacher with an interest in child pornography is exceptionally troubling, because teachers have access to children and are in a special position of the trust with students, parents, and the public." At sentencing, the U.S. Attorney’s Office emphasized that while the investigation revealed no evidence of inappropriate sexual contact with his students, investigators were nonetheless concerned by the fact the otherwise innocuous images of his students had been digitally manipulated to include sexual imagery. "Every time a sexually explicit image of a minor is produced, transmitted, or viewed, a child is re-victimized," said Steve Francis, acting special agent in charge of HSI Detroit. "The fact that this defendant was in a position of trust is particularly disturbing and heightens our resolve to hold predators accountable."
This case is the result of an investigation by the Michigan State Police Internet Crimes Against Children Task Force (MSP ICAC), working in conjunction with HSI. The Ingham County Prosecutor’s Office initiated Millar’s prosecution and then referred the case for federal prosecution. The case was prosecuted by Assistant U.S. Attorney Alexis M. Sanford.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
Jury Convicts Last of Seven Defendants in Scheme that Stretched from Texas to Colorado, Indiana, Wisconsin, Ohio and Michigan
GRAND RAPIDS, MICHIGAN — Antonio DeJesus Perez-Martinez, 44, of Austin, Texas, was convicted on 30 January 2017 of conspiracy to commit wire-fraud, credit account fraud, and aggravated identity theft after a four-day jury trial. Perez-Martinez, the last of eight defendants charged in the case and the overall leader of a conspiracy that at times involved over a dozen participants, remains in the custody of the U.S. Marshals Service pending sentencing on 15 May 2017 before Chief Judge Robert J. Jonker, who presided over the trial.
The evidence at trial established that Perez-Martinez, a Cuban citizen and lawful permanent resident of the United States ("green-card" holder), recruited numerous other recently-arrived Cuban citizens – all of whom had entered the United States in 2014 under a special "parole" program that admits Cuban citizens who present themselves to immigration authorities at the border – into a fraud scheme that initially involved obtaining compromised credit-account data from illicit websites, encoding that data onto cards, and using the "cloned" cards to bulk-buy gift cards and stored-value cards. During the Summer of 2015, Perez-Martinez switched from acquiring account data online to using "skimming" devices that his accomplices secretly installed inside gas-pumps, and also extended his group’s operation into West Michigan. Skimming devices capture the account data of any card used to purchase gas without interfering with the purchase, leaving the account holder unaware that the data has been compromised until it has been re-encoded onto cloned cards and used to make unauthorized purchases. Because skimming devices acquire account data firsthand, the numbers are more recent and more reliable than those acquired secondhand from online hackers, and the illegal profits are greater.
Perez-Martinez’ conviction brings the total number of convictions from the case to seven: Raul Gonzalez Falcon (29), Yunier Carballo-Pupo (34), Manuel Perez-Cabrera (38), and Michel Velazquez-Gregori (30), none of whom had prior criminal records and all of whom agreed to plead guilty and to cooperate with the investigation, all received sentences of 21 months in prison. Pedro Sanchez-Pupo (32) received a sentence of 37 months. A seventh defendant, Juan Estrada-Galvez, was allowed to plead guilty to a state misdemeanor in Kent County when the investigation determined that his involvement in the scheme was minimal. Perez-Martinez faces maximum penalties of 30 years in federal prison for the conspiracy and ten years for the credit account fraud, as well as a mandatory two-year prison sentence for the aggravated identity theft charge that must be served after the sentences on the first two counts are complete.
"Identity-theft is a continually expanding and especially pernicious form of property crime," stated Acting U.S. Attorney Andrew Birge, "and the pump-skimmer scheme is an aggravated form of identity theft because it targets every citizen of West Michigan doing one of the most basic and necessary things we all have to do: putting gas in our tanks. Any person who comes to West Michigan on a skimmer crew had better understand that the odds of getting caught are good, and that if they are caught, they will be prosecuted in Federal court."
"As demonstrated by Monday’s guilty verdict, the defendant orchestrated a fraudulent scheme in order to steal proprietary financial information from their victims through the use of credit card skimmers at local gas stations," added David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "Criminals who engage in these types of plots exploit and manipulate the very technology that we depend on to conduct secure financial transactions in the retail marketplace. Furthermore, such high-tech criminal activity causes significant losses for both merchants and banking institutions. The FBI and its local, state and federal law enforcement partners remain committed to protecting consumers, businesses, and financial institutions from the fraud schemes of criminal enterprises like the one this defendant led."
The case was investigated primarily by the FBI’s Lansing office, with assistance from the U.S. Postal Inspection Service, the Grand Rapids Metro Fraud and Identity-Theft Team, the Grand Ledge Police Department, and the McAllen Police Department, McAllen, Texas. It is being prosecuted by Assistant U.S. Attorney Hagen W. Frank.
