Jeffrey G. Collins
                                                                                                   United States Attorney
                                                                                                    Eastern District of Michigan

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

For Immediate Release:

Contact: Gina Balaya (313) 226-9758

June 18, 2003
 

Jeffrey G. Collins, United States Attorney; Willie T. Hulon, Special Agent in Charge Federal Bureau of Investigation; Special Agent in Charge of Internal Revenue Service Criminal Investigation; and Deputy Chief Harold Cureton, Professional Accountability Bureau of the Detroit Police Department announced that Alberta Butler, age 45 of Belleville, Michigan, was found guilty yesterday, following a two-week jury trial, of seven counts of mail fraud, conspiracy to commit mail fraud, and accepting bribes under color of official right. Michael Nickson, age 45, of Detroit, Michigan, was found guilty of one count of money laundering in the same trial. Immediately prior to the commencement of the trial, Michael Nickson pleaded guilty to ten counts of mail fraud, conspiracy to commit mail fraud, sixty-seven counts of structuring financial transactions to avoid reporting requirements, and four counts of filing fraudulent tax returns.

Assistant U.S. Attorney John Engstrom, who is prosecuting the case, said that "Mr. Nickson, through his company, Four Star Industries, Inc., was awarded two purchase orders by the Detroit City Counsel to supply pump parts to the Detroit Public Lighting Department, Mistersky Power Plant. The evidence at trial proved Michael Nickson used those two purchase orders to bill the City of Detroit for over two million dollars of pump parts that were never delivered. Alberta Butler, who worked in the Accounts Payable Department of the City of Detroit, received numerous gifts from Nickson, including a computer; college tuition assistance; expensive jewelry; tickets to the opera; and over $1,500 in cash. Butler ultimately authorized payment on the fraudulent invoices. The jury acquitted two defendants, Gary Spann and Leroy Barnes, who worked at the Mistersky Power Plant, requisitioned the unneeded parts, and signed for the receipt of the pump parts that were never delivered."

Yesterday's convictions, as well as the guilty pleas entered two weeks ago, carry maximum sentences from three to 20 years, and possible fines. The indictment also seeks the forfeiture of Michael Nickson's interest in various listed assets valued in excess of $900,000. These assets include more than $200,000 in U.S. currency and two official bank checks, totaling more that $230,000, seized from the office/residence of Mr. Nickson. Forfeiture of these assets will be determined by the Court at a later date.

The case was investigated by the Federal Bureau of Investigation, the Detroit Police Department, Public Corruption Unit, and the Internal Revenue Service./p>