(Marquette, MI) – Three incidents of hunger and cold over the past two days in Marquette, MI shows the gales of winter’s poverty and homelessness have come early as the Upper Peninsula.
In fact, the U.P., itself is barely coming to grip with the extent of the growing poverty and a hunger crisis – and if there is any substance abuse issues involving the hungry – all rules seem to get thrown out the window.
State budget cuts and high unemployment ate taking their toll.
The Marquette, Michigan Poverty Incidents Fri., Oct. 28, 2016 and today Sat., Oct. 29, 2016 (so far):
A short while ago on this cold Saturday morning a man was begging for food money for his hungry child on Bike Path – possible name is Steve Mert (sp? – we would like to talk to him).
Friday – Police called to local restaurant because hungry people were “dumpster diving”
Friday – twice on Friday police called to an exclusive neighborhood in north Marquette where a male and a 15-year-old female show up asking to be let inside because they are cold and hungry – they claimed to be neighbors but man who called police did not recognize them.
The Warming Center and the faith-based Room at the Inn Project do what they can – with almost no money. They are forced to weed out – send packing or arrested – all those who have been drinking or doing drugs. Police do not have the jail space to lock away the problem – nor should they be expected.
The problem is likely to get worse as the snow blankets the U.P.
Out of real fear, should people not help those who arrive at their door seeking help?
What would Jesus or any of the faith leaders do?
How many will die this winter suffering in the frozen U.P.?
How cold are we as humans with people who are fallible?
“Drugs in Detroit are being spread like a cancer here in the U.P.,” said U.S. District Court Judge R. Allan Edgar, who was presiding over his final sentencings before retirement. “There is really no excuse for it.”
Corrie Venta Ruth, left, was sentenced to 41 months or three years and five months in federal prison. Stephanie Rae Hatch, right, was sentenced to 33 months or two years and nine months in federal prison. Video still by Greg Peterson
Damon Ramone Belcher received 46 months or three years and 10 months in federal prison. Video still by Greg Peterson
(Marquette, MI) – A large heroin and crack cocaine pipeline from Detroit to the Upper Peninsula is being dismantled by federal prosecutors who oversaw the sentencing of three co-conspirators last week (June 22, 2016) and there are huge hints that more criminal charges and indictments are expected against others in the drug trafficking organization that can be violent.
“Drugs in Detroit are being spread like a cancer here in the U.P.,” said U.S. District Court Judge R. Allan Edgar, who was presiding over his final sentencings before retirement. “There is really no excuse for it.”
“Today we are dealing with the Houghton branch of the conspiracy,” the judge said, noting that the kingpin of the conspiracy was also bringing “heroin and crack cocaine to Escanaba.”
Federal prosecutor Paul Lochner said the cases are important to the U.P. because the cycles brought by highly addictive drugs have left a “wrath of social problems” on Yooper and national doorsteps – like meth, heroin and cocaine.
Even though the nickname of a Detroit drug baron and his wife were brought up several times during the sentencings, one federal official pleaded with U.P. Breaking News not to use the name because “lives are at stake” and suggested a temporary pseudonym be used in news coverage.
The kingpin is “good about hiding facts of the conspiracy” from each employee, federal officials said.
For the purposes of this story only and to protect lives, U.P. Breaking News will use the pseudonyms “Mr. Drug Kingpin” and “Mrs. Drug Kingpin.”
“Drugs in Detroit are being spread like a cancer here in the U.P.,” said U.S. District Court Judge R. Allan Edgar, who was presiding over his final sentencings before retirement. “There is really no excuse for it.“
Damon Ramone Belcher received 46 months or three years and 10 months in federal prison. Video still by Greg Peterson
Corrie Venta Ruth, left, was sentenced to 41 months or three years and five months in federal prison. Stephanie Rae Hatch, right, was sentenced to 33 months or two years and nine months in federal prison. Video still by Greg Peterson
Federal Judge R. Allen Edgar handed out these sentences:
Damon Ramone Belcher, a.k.a. defendant “D” received 46 months or three years and 10 months in federal prison
Corrie Venta Ruth, a.k.a. defendant “C” was sentenced to 41 months or three years and five months in federal prison
Stephanie Rae Hatch sentenced to 33 months or two years and nine months in federal prison
All were interviewed and officially arrested by Upper Peninsula Substance Enforcement Team (UPSET) agent Ron Koski in Houghton, MI
The three sentencing were each handled separately. But had several uncommon ties – sidebars.
In a rare event during sentencing, an official sidebar with the judge was requested by prosecutors and defense attorneys with their clients at their side. Sidebars are common during trials and sometimes pretrial hearings but rarely during sentencing.
Just to make sure no-one could hear what was being said, federal court officials turned on a white noise machine.
At issue is a major federal investigation into the Detroit to the U.P. of a heroin and crack cocaine pipeline – and high level trafficking of drugs in others areas.
Cooperating witnesses lives may be in jeopardy.
Federal Prosecutors in Marquette, MI: Asst. U.S. Attorney Hannah Bobee, left, and Asst. U.S. Attorney Paul Lochner, right.
Federal Prosecutor Paul Lochner painted Ruth as one of “multiple bagmen” in the organization and all said all three were in the game because of greed – “trying to make money.”
Lochner said he hopes the prison sentences will be a “deterrent” and send the message to would-be drug couriers that “easy money is not the answer.”
“It’s a dumb decision,” Lochner said. “The answer isn’t selling narcotics.”
Damon Ramone Belcher and Corrie Venta Ruth were indicted on two counts each of felony “distribution of heroin.”
On Nov. 18, 2015 in Houghton and Lake Linden, Belcher and Ruth “knowingly and intentionally distributed heroin, and aided and abetted the distribution of heroin,” the indictments state.
The defendants and their lawyer ask for leniency:
During each sentencing, Assistant U.S. Public Defender Elizabeth A. LaCosse tried to paint her clients in the best possible light and pleaded for leniency because their respective roles were minor compared to others being investigated in the coke-heroin pipeline.
LaCosse argue that in federal sentencing guidelines there have long been “powder and crack cocaine disparities” in sentencing – that the judge noted was important because crack is much more addictive and powerful – the cooked base of powdered cocaine.
LaCosse reminded the judge about recently changed sentencing guidelines set by the United States Sentencing Commission and that the judge has the discretion to give a prison term appropriate for each person’s involvement in the conspiracy that take into consideration the actual drug weights of involving each defendant.
The judge said he sentenced all three on the “low end” of the federal sentencing guidelines because of their cooperation and relatively minor roles in the conspiracy.
However, Public Defender LaCosse asked the judge to consider an even lower departure because future sentencing commission edicts are expected to give judges even more desecration, but the retiring judge appeared uninterested in reading the tea leaves.
Saying I am a lowly judge, the Judge Edgar said he was going to “administer the guidelines as given” and issues raised by LaCosse are “questions for the sentencing commission to decide.”
After the heart-wrenching information offered by the defense, Assistant U.S. Attorney Paul D. Lochner reminded the judge that the cases are the latest example of the misery brought by drug traffickers in the U.P. – where an untold number of Yoopers are addicted.
Damon Ramone Belcher received 46 months or three years and 10 months in federal prison. Video still by Greg Peterson
Damon Ramone Belcher:
With the holidays approaching, Belcher needed “Christmas money” and made a dumb decision.
“He was unemployed” and desperate so Belcher “went back into crime,” said LaCosse, the court-appointed federal defense attorney.
LaCosse argued Belcher’s case is a “unique situation” because he was involved for only “14 days.”
Belcher “was hired (in Detroit) to sit on the bag” of cocaine and heroin as it was transported to the Houghton area by unnamed female conspirators, LaCosse said. Belcher “had no proprietary interest in the conspiracy.”
Damon Ramone Belcher received 46 months or three years and 10 months in federal prison. Video still by Greg Peterson
The judge described Belcher as an “enforcer” with a “limited function.” LaCosse described Belcher as “hired help” at the “bottom rung” of the drug pipeline.
“This is a bigger conspiracy” that could involve “all of the U.P.,” LaCosse said. Belcher is not “aware of subsections of the conspiracy.”
LaCosse argued that it wasn’t Belcher “did not transport drugs into the U.P.” However Judge Edgar said Belcher knew about the drugs in the vehicle and his job was to “accompany a female who was carrying drugs” often stashed in private places on their bodies.
“Two weeks and a $10,000 wire transfer” was the entirety of Belcher’s involvement, LaCosse said.
“He is not friends with all these people” involved in the heroin and cocaine conspiracy,” LaCosse said.
LaCosse said Belcher’s family depends on him and that he has taken “ownership (of his crime) and has learned responsibility.”
Belcher has a “mass on his colon” and may “require surgery in the near future,” LaCosse said.
Speaking to the judge before his sentence, Belcher said “I accept full responsibility – I did participate in the conspiracy.”
“I made a bad decision,” Belcher said. “I hope the Court shows some leniency.”
“I accept that what I did was wrong,” Belcher said.
Prosecutor Lochner said Belcher was “only being held responsible for the drugs he was involved with” and the bottom line is Belcher was “hired to come to the U.P. to sell cocaine Houghton.”
“A job he was doing well,” Lochner said. Heroin, cocaine, meth, painkillers (opioids), and other drugs that are being driven into the U.P. are “very addictive and very damaging” to the addict and the community.
Lochner said Belcher may claim he was after Christmas money but was the muscle in a smuggling ring – even if for a brief period..
Locking up people like Belcher and the others in the conspiracy serves “as a deterrent,” Lockner said.
Mr. Belcher should “consider people in Houghton who were fed coke (cocaine) by people like yourself.”
Woman smokes marijuana pipe http://www.psypost.org Photo credit: Jonathan Piccolo (Creative Commons)
“There has been a big spike in heroin use” in the U.P., Lochner said. From “oxycodone to heroin” the illicit drugs have been “devastating to the (U.P.) community.”
Lockner said Belcher’s “job was to make sure drugs went out and (bring) money back in.”
“They did accompany females from Detroit,” the judge said. The muscle escorting the women and drugs – like Belcher and Ruth – “were entrusted by suppliers downstate to protect the drugs,” Judge Edgar said.
The judge was not happy with Belcher’s criminal record that included “an armed robbery conviction.” Mr. Belcher got “back into criminal activity again – you were up here to make a buck,” the judge said.
As Belcher was being led away by U.S. Marshals, the judge offered a kind word.
“Good luck on your surgery,” Judge Edgar said.
Corrie Venta Ruth:
Ruth “was an idiot for trying to make quick money,” LaCosse said, adding Ruth is a “very nice person – not a street thug.”
However, LaCosse said Ruth grew up in a life surrounded by criminal “recidivism.” She asked Ruth be given credit for time served as he spent two months in the Houghton County Jail before “the (federal) government took over the case.”
Ruth told the judge he apologizes for bringing and “selling drugs” in the U.P.
“I want to apologize to the court,” said Ruth, in asking the judge to show “leniency.” “I apologize to the (U.P.) community.”
“I took the stupid easy route – this is not what I planned to do with myself,” Ruth said.
LaCosse said Ruth “didn’t know where he was going” when ordered by the Drug Kingpins but “did know it involved drug sales.” Ruth was the muscle hired to protect the shipment while the driving was handled by Damon Ramone Belcher, prosecutors said.
Ruth “had no idea about (the) Escanaba” arm of the drug ring, LaCosse said.
Corrie Venta Ruth, left, was sentenced to 41 months or three years and five months in federal prison. Stephanie Rae Hatch, right, was sentenced to 33 months or two years and nine months in federal prison. Video still by Greg Peterson
Stephanie Rae Hatch
Hatch allowed those involved in the conspiracy to “use her residence as a place to stay and to sell heroin and cocaine base” commonly known as crack cocaine, the indictments state.
Defense Attorney Theodore J. Greeley
“She was not an organizer or a leader” in the conspiracy said defense attorney Theodore Joseph Greeley, of the prominent U.P. law firm Casselman & Henderson P.C. Of Marquette.
Hatch was “not a decision maker” and only knew about the Houghton part of the drug ring – not the Escanaba tentacle, said defense attorney Greeley, the son of U.S. Magistrate Judge Timothy P. Greeley.
Hatch has suffered from substance abuse since childhood – or three quarters of her life – including smoking pot at age 9, drinking alcohol at age 11 and started using cocaine at age 15 – addition to other drugs, defense attorney Greeley said.
She first “had trouble with the law” at age 9, said Greeley.
Greeley argued that judge because crack cocaine is highly addictive – it is not always “cheaper.”
Corrie Venta Ruth, left, was sentenced to 41 months or three years and five months in federal prison. Stephanie Rae Hatch, right, was sentenced to 33 months or two years and nine months in federal prison. Video still by Greg Peterson
Hatch wire transferred money from Houghton drug sales to Detroit area drug suppliers and their associates, the indictments state.
An admitted drug addict, Hatch allowed her home to be “back up house” for the conspiracy to stash and sell crack cocaine and heroin, Greeley told the judge, admitting his client sent wire transfers to the Detroit kingpins from a U.P. Walmart.
The conspiracy facilitates Houghton “drug addicts” who sometimes become dealers “trying to make money” and feed their addictions, prosecutor Lochner said in general but specifically referring to Hatch’s involvement in the conspiracy.
Lockner said once addicts can not afford their drugs “its spirals” and they sometimes sell drugs.
“Next is the sales of drugs,” Lochner said, adding “it supplies their habit – locals help out” the conspiracy.
“It is a public hazard to have her out there” in the community, said Judge Edgar.
Edgar described Hatch as a “local courier” and who “wired drug money to Detroit or someplace.”
“Her home was a staging point for sales,” Judge Edgar said. “She played a pivotal role making sure the money got down” to Mr and Mrs. Drug Kingpin.
Hatch “understood” that she and her home were “essential to the success of the operation in Houghton,” Judge Edgar said,
Unlike her co-defendants, Hatch did not make a statement to the judge prior to sentencing. Hatch’s parents and teenage daughter drove up from Grand Rapids to attend the hearing and show support for their family member.
The Plea Agreements:
Under the agreements, the trio agreed to “fully cooperate” in drug investigations including with the federal Drug Enforcement Administration (DEA) and the Upper Peninsula Substance Enforcement Team (UPSET).
Under an agreement with federal prosecutors, Hatch, Belcher pleaded guilty to count one – felony conspiracy to distribute and possess with intent to distribute heroin and cocaine base.
The charges carried a maximum penalty of 20 years in federal prison that has no parole but the smaller time drug runners received much lower sentences under a plea agreement with federal prosecutors.
The judge waived fines due to defendant’s “inability to pay.”
As part of the plea agreement with the trio, the judge dismissed felony counts two and three – possession with intent to distribute heroin and possession with intent to distribute cocaine base. He also dismissed felony counts four and five against Belcher and Ruth.
Evidence obtained by prosecutors included cocaine base (crack cocaine), heroin, records of wire transfers, two undercover drug buys, prerecorded buy money, cell phone data, Walmart surveillance video, drug packaging, photographs, video of interview with Hatch.
During Ruth’s sentencing, the judge asked about the role of Mrs. Drug Kingpin (and other unnamed females) in the drug network – noting Mr. Drug Kingpin “used” his wife “to protect drugs.”
The federal prosecutor picked his words carefully in describing the hiding of drugs by female couriers.
“Their role is salient,” said Assistant U.S. Attorney Paul Lochner of Marquette. “It’s unique to females – let’s leave it at that.”
The defendants “conspired, confederated, and agreed with each other, and others, known and unknown to the Grand Jury, to distribute and possess with intent to distribute heroin” according to a five-page federal grand jury indictment of the three drug runners.
The judge waived fines due to inability to pay and all were sentenced to three years supervised release after prison, a $100 special assessment and must find jobs upon release from prison perform 20-hours weekly community service.
The trio were ordered to submit to DNA testing and cannot possess firearms, drugs or alcohol, testing and treatment for substance abuse and compete the cognitive behavioral treatment program.
The three were ordered to participate in a Michigan Bureau of Prisons 500-hour residential substance abuse program.
All three were given three years supervised released – a federal form of probation. Despite entering into plea agreements, the judge reminded the trio about their legal avenues for appealing his sentence. The three must complete a “cognitive treatment program.”
Damon Ramone Belcher received 46 months or three years and 10 months in federal prison. Video still by Greg Peterson
They can no longer posses guns, no drugs, no alcohol, undergoing regular drug and alcohol testing, and they can not visit establishments (bars) that serve alcohol, plus attend drug abuse treatment if determined appropriate by the U.S. Probation office. After release, they must serve 20 hours of weekly community service until they find a job.
A Marquette native, Edgar spent most of his career in Tennessee, first an attorney and then elected to the Tennessee House of Representatives. President Ronald Reagan appointed Edgar as a U.S. District judge in 1985.
His parents me at the Civilian Conservation Corps camp in Big Bay, MI.
Until age 13, Edgar lived as a child on West Magnetic Street in Marquette, MI
The family moved in 1953 when his his father got job in Tennessee.
The future Judge Edgar still spent summers in the U.P. with his grandparents and worked a summer job out at the exclusive Huron Mountain Club in Big Bay, MI.
Photo of Judge R. Allan Edgar by David Laprad, Hamilton County Herald
OxyContin causes more overdoses than heroin and cocaine combined, according to a report by the Centers for Drug Control. Vitualis/Flickr/Creative Commons
(Ishpeming, MI) – Ishpeming Police Friday night seized the van used in a hit and run about two hours earlier that injured a female pedestrian.
The victim, a younger female, was in screaming in pain while being treated for her injuries by paramedics on the scene.
As Upper Peninsula Breaking News was taking photos and video of the suspect’s van – a broken driver’s windshield was obvious. It’s not clear if the cracks are connected to the case.
The victim was struck Friday (June 10, 2016) about 9 p.m. by a van on Division Street just east of Seventh Street – near where local residents are familiar with – a big dip and curve at start of County Road – the back road between Ishpeming and Negaunee.
The victim was laying on the south side of the road along the east bound shoulder.
The victim, who was in obvious agony, was taken to the hospital in an ambulance by U.P. Health System Bell paramedics.
The names of the suspect and victim have not been released
Though painful the victims injuries did not appear life threatening.
The Ishpeming Fire Department assisted on the scene.
Ishpeming Police have not yet issued a release on the hit and run.
Ambulance leaves scene at approx 9:39 a.m.; roughly 30 minutes after the shooting happened and 40 minutes after original call. Photos by Greg Peterson
Editorial: Breakdown in U.P. and Marquette County mental health care, and not enough training on defusing a situation are among factors in the shooting of an elderly Ishpeming man
Ishpeming Township June 9, 2016 Shooting Timeline:
Original Call 200 Block of Silver St.: 8:50 a.m.
Shooting call approx 9:10 a.m.
(U.P. Breaking News on scene approx 9:25 a.m.)
Paramedics, police doing CPR as they leave house with victim on a stretcher: 9:36 a.m.
Why did it take 30 minutes to transport the shooting victim?
Besides the usual funding excuse, they are Marquette County and other U.P. and nonlethal force are almost strangers? Others have been shot by U.P. Law enforcement.
Why did it take so long to transport victim – despite CPR and possible defib?
Why is Pathways Community Mental Health allowed to provide poor services – again funding is blamed because of the lethal Snyder Administration whose policies are not life-friendly?!
I think it was likely “Suicide by Cop” yesterday in west Ishpeming.
But there are many very serious questions in the aftermath of the shooting of a despondent elderly west Ishpeming man in chronic pain.
The shooting by a Marquette County Sheriff’s Dept. deputy painfully shows the Upper Peninsula – like access to U.P. public records – is light years behind the rest of the nation when it comes to readily available non-lethal force.
Officers should be trained to defuse and back off – call in experts. That obviously was not done – every cop should have backed out.
Why did it take 30 minutes to rush the victim to the hospital?
There is an old saying in the paramedic game – yes you do CPR, yes to shock (defibrillator) if needed but you always “scoop and run.”
Why are Upper Peninsula law officers not better trained in non-lethal force – and to back out – not increase the drama?
With all of today’s non-lethal force avenues – those who fund – or do not fund – nonlethal force in the Upper Peninsula should be ashamed. Again money over people.
Why wasn’t non-lethal force used – because there appeared to be numerous cops on the scene when shooting occurred.
The first media on the scene, Upper Peninsula Breaking News had been on the shooting location roughly five minutes or longer when – all of a sudden – out of the blue – a somewhat grumpy Michigan State Trooper began shouting at me.
The bristly trooper shouted that cops were going to cordon off the scene. While the tape shows the trooper used the proper polite words – he then started giving me a “count to five” or I presume he would have arrested me.
I get it – there is a syndrome called Suicide by Cop – especially if there is a sadness, poverty, loneliness and chronic pain (today little is done to help those who legitimately need pain relief due to the epidemic of pill heads).
Over the past two years, the rash of suicides across the Upper Peninsula and in Marquette County is stunning.
Now all but completely inept Pathways Community Mental Health has little funding or tools to do much about it. I believe Pathways employees care – and the administration plays the cards they are dealt from Lansing – but the system is a joke.
So I can believe that this elderly guy may have wanted to be shot by the cops – not sure – but it is certainly plausible.
U.P. Breaking News has been conducting an investigation of how Pathways is letting the public down through fewer services, lack of funding (budget cuts) and mismanagement.
Upper Peninsula Health System Marquette is benefiting greatly from financial-clumsiness of Pathways.
For example, for just one client/patient it is costing the state hundreds of thousands of dollars.
U.P. Health System Marquette paramedics (ambulance runs cost $1,400 or so per incident) – have responded to an estimated/roughly 100 calls over past two years for this one client.
U.P. Health System Marquette – a Duke LifePoint Hospital that has saved lives in the U.P. – also stands to make hundreds of thousands of dollars on this patient alone.
At issue is weekly calls to the same residence on the 8th floor of Pine Ridge Apartments in Marquette because of a male Pathways client in his early 20’s who suffers from chronic panic attacks and other issues – and yet it housed near the top of Pine Ridge Apartments.
Why hasn’t the Marquette Housing Commission – which oversees Pine Ridge – addressed this and other issues.
Pine Ridge Apartments used to be for the low income elderly – now it is a dumping ground for Pathways clients.
U.P Breaking News calls for the state of Michigan and U.P. Health System Marquette (Duke LifePoint) to account for this improperly handled situation – one of many.
By not addressing the needs of this client, Pathways has also wasted the resources of the city of Marquette Fire department and the city of Marquette Police Department – who often are sent to the call.
Its actually a painful joke at 911 Central Dispatch because this reporter has heard many dispatchers put out the call on the radio in a somewhat sarcastic way – and who can blame the !!!
They care at Marquette County Central Dispatch – but Pathways is asleep at the wheel thanks to the Snyder Administration that shows little care for those with mental health and poverty issues.
Remember the Snyder Administration poisoned a generation of low income kids in Flint and elsewhere. A state scapegoat or two have been arrested – but its common knowledge among Snyder Administration employees know you do not dissent or challenge their boss’s political ideas. Plus the U.S. EPA should be ashamed at the very least.
Numerous friends and relatives of suicide victims have told U.P. Breaking News that Pathways is letting down the public.
There are many horror stories at Pathways since budget cuts under the Snyder Administration.
This is just one terrible, sick incident:
Did you know – a Pathways contracted home for clients in Ishpeming where the woman in charge was feeding moldy sandwiches to blind pathways patients in her case – many thought that was oddly ironic since she was extremely morbidly obese at the time – and this reporter has dealt with weight issues.
We mention the obesity because she was repeatedly feeding the MOLDY SANDWICHES. I dare the state to deny the moldy sandwiches as a half-hearted state probe was conducted.
The investigation is being handled by Michigan State Police and will be reviewed by the Marquette County Prosecutor’s office.
U.P. Breaking News strongly urges these officials to not simply state the shooting was justified – but rather identify and investigate the system problems with non lethal force, inept and wasteful Pathways services to those with depression, and how those in the entire top to bottom mental health response system not only allows it to happen but profits from it.
In fact – if there was ever a time to form a grand jury it is now – to find out what happening to those who need our help the most – but are being failed by the system.
This is why we need a regular Grand Jury system in Michigan – in other states state and local grand juries make findings and demand probes – when local bureaucrats and politicians do not have the courage.
The poster child for misuse of grand juries is said to be the Upper Peninsula:
In fact, the infamous and violent 1913 copper miners strike and related uprisings in the U.P. is being credited with starting the use of grand juries for political revenge with politically powerful company bosses vs miners in Michigan, according to a newsweek story.
“The forces that ran the local government, who were almost unanimously pro-management, evaded justice for the bulk of their crimes. They did this by manipulating the legal process. Of particular note: They rigged a grand jury into failing to indict for some very public and obvious crimes.“
If political bosses and officials do not do their job – someone has to.
Aug 21, 2015 – Let’s Talk: A Community Conversation About Suicide PreventionEvent … The Marquette County Suicide PreventionAlliance is pleased to offer
Northern Michigan tribe accuses state of Michigan of persecuting tribes by unleashing federal crimes against Native Americans and interfering with tribal commerce in fight over cigarette taxes
(Above) KBIC charges as stated in 20-count federal complaint
Seneca versus the state of Michigan: Tax hungry Michigan settles tobacco agreements with 10 of Michigan’s 12 Native American tribes – but two Upper Peninsula tribes says its government creep into tribal business and KBIC tells Michigan to back off
U.P. Breaking News Exclusive: KBIC tells state of Michigan to stop committing federal crimes against Native Americans in ongoing dispute over cigarette taxes
(Marquette, MI) – The Keweenaw Bay Indian Community is not backing down – and in fact is ratcheting up – its decades long battle with the state of Michigan over the taxing of cigarettes.
Reacting to the threat of possible criminal charges and claiming its being coerced by the state, the tribe recently filed a 20-count, 60-page federal tribal rights lawsuit against four state officials in charge of enforcing and collecting taxes for cigarette sales and more.
The May 20 suit stems from large cigarette seizures by state police including in February and December 2015.
During the the Feb. 8 incident, state police seized of 184 cases of untaxed Seneca cigarettes amounting to over 11,000 cartons valued at nearly $200,000 during separate traffic stops by state police.
Tribal officials said the confiscated smokes were going to be sold on the reservation – therefore the state has no right to seize the cigarettes that are manufactured by Native Wholesale Supply Company, a tribal-chartered corporation that distributes tobacco products and is based in Perrysburg, NY on the Seneca Nation and operated by a Native American.
Meanwhile, in December over 3,300 cartons of untaxed Seneca brand smokes valued at nearly $66,000 were seized by state police. KBIC bought the cigarettes from an economic development arm of the Winnebago Tribe of Nebraska. The cigarettes were confiscated after tribal member John Davis was stopped by state police on U.S. 41 in Ely Township in west Marquette County.
“Davis was stopped by Michigan State Trooper (Chris) Lajimodiere, purportedly for speeding. However, no
speeding citation was ever issued,” the lawsuit states. Under forfeiture laws, state police also confiscated the pickup truck Davis was driving and the trailer that was used to haul the smokes.
KBIC is asking for immediate relief from a federal judge in the form of an injunction to stop the state from illegally seizing untaxed tribal cigarettes in a scheme the tribe alleges violates federal law.
The suit names several articles in the U.S. Constitution including the “Supremacy” clause that prohibits the feds from “unilaterally claiming federal supremacy over Indian tribes,” and 1983 Indian Traders Statues that cover Native Americans doing business, and a “Commerce Clause” in the Constitution that protects Native American business owners. The suit also sites an 1842 treaty between the Chippewa and the U.S. government involving ceded lands and commercial trade in Indian Country.
The seizures were scored by the MSP Eighth District Tobacco Enforcement Team assisted by MSP Troopers from the Iron Mountain Post. State police stopped KBIC cigarette delivery trucks in Iron County and Marquette County. The Michigan Attorney General’s office is continuing its investigation into the latest state police seizures of cigarettes without a tax stamp.
After the seizures, the tribe issued a statement saying it will not “be forced by the state of Michigan to enter into a tax agreement that would subject KBIC to a one-sided, burdensome state process.”
The lawsuit is the latest in an ongoing tax battle between the state and the KBIC. Michigan has imposed an excise tax on cigarettes since 1947 and that tax has risen many times bringing in nearly a billion dollars annually to the state to help finance education, the Healthy Michigan Fund, and the Medicaid Fund.
KBIC says it is illegal for the state to seize cigarettes intended for its members – and cited the state’s complicated tax systems including the Michigan Sales Tax Act, the Michigan Use Tax Act and the Michigan Tobacco Products Tax Act (aka Tobacco Products Tax Act).
Michigan Secretary of State Ruth Johnson
Michigan Treasurer Nick A. Khouri
The defendants are Michigan Treasurer Nick A. Khouri, Michigan Secretary of State (SOS) Ruth Johnson, Michigan Treasury Dept. Native American Affairs Specialist Walter A. Fratzke; and Michigan State Police Sergeant Christopher Crowley, who is responsible for enforcing and investigating violations of Michigan tax law, including the Tobacco Products Tax Act
Upper Peninsula Breaking News left messages for KBIC tribal attorney Danielle Webb and Skip Durocher, a Minneapolis attorney representing the tribe. Messages seeking comment were sent via email to Tribal Council President Warren “Chris” Swartz, KBIC CEO Larry Denomie and asst. CEO Sarah Maki.
Michigan Attorney General Bill Schuette
The Michigan Attorney General Michigan Attorney General Bill Schuette’s office was efforting a possible statement even though the long Memorial Day weekend is underway. KBIC has over 3,600 enrolled members and over 1,000 live on the reservation or trust lands.
The tribe accuses state officials of illegally enforcing the Michigan Tobacco Products Tax Act, in “a manner that violates federal and state law and impermissibly restricts the Community’s rights to purchase, sell, and transport tobacco products free from unlawful Michigan tobacco products taxes and free from other unlawful and impermissible seizures and other burdens,” the suit states.
The suit accuses Michigan officials of enforcing the Use Tax Act in a manner that “violates federal and state law and impermissibly restricts the Community’s and Community members’ rights to purchase, lease, rent, use, store, and consume tangible personal property and services free from unlawful Michigan sales and use taxes and free from other unlawful and impermissible burdens.”
A 20-year agreement (1977-1997) between tribes and Michigan over smokes and other tribal tax issues was terminated by the state. That pact covered taxes on cigarettes and gas. After the state terminated the pact, KBIC began to sell tobacco products on reservation and trust land to both natives and non-natives without the state’s tax stamp. That agreement allowed tribal members to purchase many items without paying a state sales tax including cars, trucks, snowmobiles, boats, airplanes, homes and items needed to build a home.
In recent years, tribal members have submitted claims to the state on these items and other concerns like expensive prescriptions. The vast majority of the claims have been rejected, a handful were approved by the state, and others are missing in action, the lawsuit alleges.
The State has entered into tax agreements with 10 of the 12 federally recognized Indian tribes located in Michigan. Agreements have not been reached with Keweenaw Bay Indian Community and the Lac Vieux Desert Band of Lake Superior Chippewa Indians. The burden of collecting and paying taxes on tobacco products is on the tribes – not something that sits well with KBIC officials.
The tribe sites additional hours for several employees each month to accurately determine how much is owed the state. Because the state requires the tribes to purchase cigarettes on which taxes have already been paid, among the duties of the tribe is to file tobacco tax forms – and that allows the state to hold on to tribal monies until the refund paperwork is filed.
U.S. Magistrate Judge Timothy P. Greeley referred the case to a trial judge – the honorable federal judge Robert Holmes Bell – who ruled against the tribe in an earlier lawsuit..
The tribe lost a similar federal tribal rights lawsuit that was filed on March 27, 2008 and decided by the Sixth Circuit U.S. Court of Appeals on June 26, 2009 – as the appeals court upheld a ruling by Judge Bell that stated the court is “entering a judgment in favor of defendants on all of plaintiff’s remaining claims.”
In the 2008 suit, Judge Bell ruled KBIC “has not prevailed on the merits of its claims” and KBIC “is not entitled to permanent injunctive relief.” KBIC even lost its claim to cover attorney’s fees and other costs. However, in its suit, the tribe claims the judge left the door open to return to court depending on appeal’s court rulings on law important to the case.
The tribe is suffering an “economic burden” because the “tribal retailer must wait for tobacco tax refunds and suffers a loss of use of funds during this time period,” Judge Bell stated in his Sept. 2005 opinion on the original lawsuit.
However, Judge Bell ruled that “the state’s interests in collecting the cigarette tax clearly outweighs the tribe’s interests in marketing a tax exemption.”
Judge Bell noted the U.S. Supreme Court has “never approved a tax refund system for Indian cigarette sales” adding “there is no evidence” that the nation’s highest court “has ever considered a refund system such as that used by Michigan.”
“The revenue it derives from the sale of cigarettes to non-Indians comes not from value generated on the reservations but from the marketing of a state tax exemptions,” Judge Bell wrote. The KBIC “sales of untaxed cigarettes also threaten the economic welfare of non-tribal stores in the area that sell cigarettes”
In the early 2,000s, the Michigan State Police Tobacco Tax Team made numerous KBIC related raids in several U.P. Counties seizing thousands of cartons of untaxed smokes at locations that included the tribe’s casinos in Baraga and Harvey, plus the U.S. Postal Service regional distribution center in Kingsford.
The tribe says it will loose millions in revenue. In fact, its no secret that non-native smokers – who are paying high Michigan taxes on cigarettes sold on non-tribal lands – sometimes make special trips to KBIC casinos or to the Pines Convenience Center and Smoke Shop, the tribal convenience store on U.S.-41 in Baraga. The tribe also sells cigarettes at the Rez Stop, a gas station convenience store in L’Anse.
For example, KBIC stated in court documents its 2001 revenues from untaxed cigarettes of nearly $557,000 dropped to $126,000 in 2002. The tribe and state have worked on various ways to resolve the problem including quotas on how many untaxed cigarettes KBIC can sell each year to natives – and not the public.
However those efforts led to additional accusations including that one KBIC member who bought up to 150 cartons of tax-free cigarettes each month and was selling the smokes on the internet. Plus non-native retailers in the area complained to the state treasury department that the tribe had an unfair advantage selling untaxed cigarettes.
One state proposal involved a quota of 3.2 million untaxed cigarettes annually, but the tribe counter put the quota at 8 million individual cigarette sticks. In 2004, the tribe started limiting natives to two cartons per week of untaxed smokes at a cost of $25 per carton, while non-members would pay $30 per carton.
All the defendants are being sued “in official and individual capacities.”
Treasurer Khouri oversees an “agency that administers and enforces the Sales, Use, and Tobacco Products Tax Acts.” The department’s Native American Affairs Specialist Fratzke “is the department official charged with administering, enforcing and applying federal and state laws to Michigan tribes and tribal members as they involve Michigan taxes, including sales, use, and tobacco products taxes..”
MI SOS Johnson “manages and administers programs and services” including the Sales and Use Tax Acts” involving “motor vehicle transactions.” MSP Sgt. Crowley “coordinated, authorized, and executed the seizures of tobacco products” and other KBIC “community property at issue in this action.”
Agreements between the state and tribes are in place with these communities:
https://turtletalk.files.wordpress.com/2009/05/michigan-appellee-brief.pdf
Fletcher is Professor of Law at Michigan State University College of Law and Director of the Indigenous Law and Policy Center. He is the Chief Justice of the Poarch Band of Creek Indians Supreme Court and also sits as an appellate judge for the Pokagon Band of Potawatomi Indians, the Hoopa Valley Tribe, and the Nottawaseppi Huron Band of Potawatomi Indians. He is a member of the Grand Traverse Band of Ottawa and Chippewa Indians, located in Peshawbestown, Michigan. In 2010, Professor Fletcher was elected to the American Law Institute.
The Keweenaw Bay Indian Community sells tobacco at The Pines Convenience Center, a gas station and convenience store in Baraga, Michigan. Photo from Facebook
On Monday, Upper Peninsula Breaking News will make what we consider a huge announcement.
In addition, major developments in two ongoing investigations.
I have not written much in the past 2 weeks because we (U.P. Breaking news) were in negotiations – and have been following major leads in the “The Looting of the Upper Peninsula Coca-Cola King” – whose estate is missing millions and millions of dollars – plus missing luxury cars and more.
We are conducting a criminal investigation into the Looting of the late Upper Peninsula Coca-Cola King Gordon Elson – a kind, generous lovable man – who has been ripped off by attorneys, trustees, and a whole list of terrible things including the kidnapping of Gordon Elson.
Mr. Elson was held literally hostage in Florida by Marquette Businessman Bill Pesola and maybe others. Now those who accused Pesola have apparently done what Pesola did.
You see in this cast of characters – on one end its definitely incompetence – but the evidence indicates its major criminal conduct.
We keep begging attorneys Richard M. Graybill and Daniel D. Mead to please talk to us – even off the record – but at this point it seems like they have circled the wagons. I would appreciate you calling me – at the very least – please call Greg Peterson 906-204-2549.
We are investigating those attorneys – and much more.
And we are investigating the Elson estate trustee George Paavo of Negaunee, MI – about where did the $30 million go – and then there is questionable and very suspect Gordon Elson last will and testament.
We think there may have been previous Elson wills. We will explain in upcoming sensitive stories. None of our sources – believes Mr. Elson would have forgotten his alma-mater – and bequeath millions to his beloved Finlandia University. The University is not part of the will – but should be.
If you know of criminal activity involving the estate of Gordon Elson – or if you got lots of money from the Elson estate – suggest you be the first in line asking for plea agreements etc.
Stories so far:
Eve of the Secret Estate Sale of Upper Peninsula Coca-Cola King Gordon Elson
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Even though the nickname of a Detroit drug baron and his wife were brought up several times during the sentencings, one federal official pleaded with U.P. Breaking News not to use the name because “lives are at stake” and suggested a temporary pseudonym be used in news coverage.
LaCosse argue that in federal sentencing guidelines there have long been “powder and crack cocaine disparities” in sentencing – that the judge noted was important because crack is much more addictive and powerful – the cooked base of powdered cocaine.
However, Public Defender LaCosse asked the judge to consider an even lower departure because future sentencing commission edicts are expected to give judges even more desecration, but the retiring judge appeared uninterested in reading the tea leaves.
Prosecutor Lochner said Belcher was “only being held responsible for the drugs he was involved with” and the bottom line is Belcher was “hired to come to the U.P. to sell cocaine Houghton.”
However, LaCosse said Ruth grew up in a life surrounded by criminal “recidivism.” She asked Ruth be given credit for time served as he spent two months in the Houghton County Jail before “the (federal) government took over the case.”
“Her home was a staging point for sales,” Judge Edgar said. “She played a pivotal role making sure the money got down” to Mr and Mrs. Drug Kingpin.
Under an agreement with federal prosecutors, Hatch, Belcher pleaded guilty to count one – felony conspiracy to distribute and possess with intent to distribute heroin and cocaine base.
The trio were ordered to submit to DNA testing and cannot possess firearms, drugs or alcohol, testing and treatment for substance abuse and compete the cognitive behavioral treatment program.
Elizabeth A. LaCosse
Federal Judge R. Allan Edgar
As Upper Peninsula Breaking News was taking photos and video of the suspect’s van – a broken driver’s windshield was obvious. It’s not clear if the cracks are connected to the case.
The victim was laying on the south side of the road along the east bound shoulder.
The shooting by a Marquette County Sheriff’s Dept. deputy painfully shows the Upper Peninsula – like access to U.P. public records – is light years behind the rest of the nation when it comes to readily available non-lethal force.
Why wasn’t non-lethal force used – because there appeared to be numerous cops on the scene when shooting occurred.
Upper Peninsula Health System Marquette is benefiting greatly from financial-clumsiness of Pathways.
Seneca versus the state of Michigan: Tax hungry Michigan settles tobacco agreements with 10 of Michigan’s 12 Native American tribes – but two Upper Peninsula tribes says its government creep into tribal business and KBIC tells Michigan to back off 
Reacting to the threat of possible criminal charges and claiming its being coerced by the state, the tribe recently filed a 20-count, 60-page federal tribal rights lawsuit against four state officials in charge of enforcing and collecting taxes for cigarette sales and more.
The suit names sev
The tribe says it will loose millions in revenue. In fact, its no secret that non-native smokers – who are paying high Michigan taxes on cigarettes sold on non-tribal lands – sometimes make special trips to KBIC casinos or to the Pines Convenience Center and Smoke Shop, the tribal convenience store on U.S.-41 in Baraga. The tribe also sells cigarettes at the Rez Stop, a gas station convenience store in L’Anse.
Upper Peninsula Breaking News by Greg Peterson 
