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Neighbors and business owners in a growing Grand Rapids neighborhood are standing up against a so-called urban terrorist. Since Christmas Day a number of businesses and a new condo development have been vandalized and struck by arson in East Hills. Dozens of residents have received letters threatening violence if they don’t move out. The letters say old neighbors have been priced out as new developments came in.

Kathryn Caliendo has been volunteering for the East Hill Council of Neighbors for 20 years.

“I don’t like the buzzwords anarchy, or gentrification and I don’t like the word terrorist. This is not political discourse. This is criminal activity. And that’s what I want it to be treated as.”

Federal prosecutors have charged 21 people with Medicare fraud in metro Detroit.

The indictments include doctors, physical therapists and clinic managers. They’re charged with billing Medicare for $23 million in services that either weren’t needed, or were never performed.

Andrew Arena heads the FBI’s Detroit office. He says one of the most striking examples is a physician who did $8 million worth of home visits:

Dave Hogg / Flickr

Detroit Mayor Dave Bing's office released this statement regarding the RICO indictments of former Detroit Mayor Kwame Kilpatrick, Victor Mercado, former director of the city Water and Sewerage Department, and 3 others:

We are disappointed by continued revelations of the mistakes of the past. Yet, we will not be deterred from our agenda. We will continue to work hard to restructure city government to a level of accountability, transparency and performance for our citizens. We have the utmost confidence in U.S Attorney Barbara McQuade and her team, and will cooperate and not interfere with their investigation.

While these indictments will make it more difficult as we seek a new director for the water department, and continue to make the tough but necessary decisions throughout the city, we will maintain our commitment to the highest ethical standards and those who uphold them for the benefit of our city and region.

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Kwame Kilpatrick and the others associated in the case are facing charges under the federal RICO statute (Racketeer Influenced and Corrupt Organizations). You can check the FBI's glossary of terms to see what activities can be charged under RICO. The law was enacted by Congress 40 years ago to prosecute the leaders of organized crime. Before RICO it was difficult to prosecute organized crime leaders who rarely got involved in day-to-day dirty deeds. 

Jim Schaefer of the Detroit Free Press has written up a nice little summary of RICO and how prosecutors have since used it to fight corruption in organized labor, drug gangs, and government officials. He writes:

Prosecutors must prove that there was a “criminal enterprise” at work; that the person being prosecuted conspired with others to commit a pattern of crimes, from violent acts to financial crimes such as bribery, money laundering, wire fraud or extortion.

Federal prosecutors will try to prove that Kilpatrick and those newly indicted today colluded in a pattern of crimes.

First page of the unsealed indictment
Department of Justice

Four Detroit-area residents have been indicted by the federal government for Medicare fraud.

The Department of Justice says Medicare fraud schemes were operated out of Patient Choice Home Healthcare and All American Home Care.

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