Rodney Blaine Burrell, Misprision of a Felony, Michigan 2012

Detroit – A former high-ranking Detroit Water and Sewerage Department (DWSD) official and an executive from a contracting firm have been convicted in connection with a scheme to illegally funnel funds and evade federal reporting requirements, according to court documents unsealed this week. The case, investigated by a multi-agency task force including the Environmental Protection Agency (EPA), sheds light on a pattern of alleged corruption surrounding public contracts in Detroit.

Rodney Blaine Burrell, formerly the Director of the DWSD, was found to have committed misprision of a felony – the act of concealing knowledge of a crime – related to illegal activity carried out by Shakib Deria, a former Project Executive and Director of Demolition and Environmental Remediation at Ferguson Enterprises, Inc. The investigation initially focused on allegations that Burrell directed contracts, including one for asbestos abatement, to specific companies in exchange for illicit benefits.

The core of the case revolved around a series of structured cash withdrawals from the account of A & F Environmental/ Johnson Construction Services, Inc. Deria orchestrated eighteen separate withdrawals totaling $171,000, each for $9,500. This deliberate structuring was designed to circumvent the $10,000 reporting threshold required by federal law, aimed at preventing money laundering and tracking illicit financial activity. The funds were allegedly intended for Bobby W. Ferguson, though the precise nature of the payment remains unclear.

Federal prosecutors stated the actions constitute a clear attempt to obstruct justice and undermine the integrity of public contracting. U.S. Attorney Barbara L. McQuade, speaking after Deria’s initial plea, emphasized the commitment to pursuing all those involved in defrauding Detroit citizens. The investigation is part of a broader effort to address corruption related to the Garden View Estates public housing project and other public works initiatives.

Table of Contents

Toggle

Sentencing and Penalties

Shakib Deria pled guilty in May 2011 to violating 31 U.S.C. 5324 (structuring transactions to evade reporting requirements) and conspiracy, a violation of 18 U.S.C. 371. He was sentenced in September 2012 to 36 months of probation and ordered to pay a $4,000 federal fine. Burrell, charged with misprision of felony under 18 U.S.C. 4, also entered a guilty plea in September 2012 and received a 24-month probationary sentence and a $5,000 fine. Additionally, the defendants violated 42 U.S.C. 7413(c)(4) related to false statements and concealment of material facts in matters within the jurisdiction of the EPA.

Key Facts

Defendant(s): Rodney Blaine Burrell & Shakib Deria
Location: Detroit, Michigan
Year: 2012
Crime: Fraud, Misprision of Felony, Structuring Financial Transactions
Amount Involved: $171,000 in structured cash withdrawals
Agencies Involved: EPA Criminal Enforcement, FBI, HUD-OIG
Penalties: Probation, Fines totaling $9,000

The EPA’s involvement highlights the agency’s increasing focus on investigating financial crimes linked to environmental violations and public works projects. The case serves as a reminder that concealing illegal activity, even if not directly involved in the initial crime, carries significant legal consequences. The investigation remains open, and authorities have not ruled out further charges or prosecutions related to this case.

Source: EPA ECHO Enforcement Case Database

Related Federal Cases