Ecorse Officials and Local Business Owner Indicted for Conspiracy, Bribery, and Fraud

As part of an ongoing federal investigation into corruption in the City of Ecorse, Mayor Herbert Worthy was one of three defendants charged by Indictment with multiple counts of bribery, fraud, and conspiracy, United States Attorney Terrence Berg announced today.

United States Attorney Berg was joined in the announcement by Andrew G. Arena, Special Agent in Charge of the Detroit Division of the Federal Bureau of Investigation.

Named in the superseding indictment returned by a federal grand jury were:

• Herbert Worthy, age 77, of Ecorse, Michigan;
• Erwin “Earl” Hollenquest, age 62, of West Bloomfield, Michigan; and
• Sheldon Divers, age 40, of Detroit, Michigan.

The indictment charges Herbert Worthy with accepting multiple cash bribes in return for using his official position to ensure that the company Michigan Municipal Services would be selected, retained and paid for providing public works services to the City of Ecorse. Between November of 2007 and December of 2008, Michigan Municipal Services billed the City of Ecorse for more than $3.1 million.

Erwin Hollenquest, the Controller of the City of Ecorse, was also charged with accepting cash and a Lexus automobile in return for using his official position to assist Michigan Municipal Services in getting paid in full on its invoices, which contained hundreds of thousands of dollars in false and fraudulent charges.

Sheldon Divers, one of the founders and owners of Michigan Municipal Services, was charged with conspiracy to bribe Ecorse officials and conspiracy to defraud the City of Ecorse. Mr. Divers was also charged with two counts of money laundering. The money laundering charges arose from Sheldon Divers’ use of nominees and phantom employees to withdraw more than $500,000 in cash from the bank account of Michigan Municipal Services, money which had been obtained by defrauding the City of Ecorse. Mr. Divers was also charged with using fraud proceeds taken from the City of Ecorse to purchase a Porsche 911 automobile. The government seized and forfeited that vehicle earlier this year.

United States Attorney Terrence Berg said, “Today’s charges follow an intensive and multi-year investigation conducted by this Office and the Detroit Field Office of the Federal Bureau of Investigation. I commend the FBI for pursuing this matter expeditiously in order to address serious allegations of corruption and fraud at the highest levels of city government in Ecorse.”

"These charges are just two examples of corrupt government officials who abuse the public trust and confidence," stated Special Agent in Charge Andrew G. Arena. "Public corruption is a top criminal priority of the FBI and will not be tolerated. This investigation demonstrates the FBI's commitment in investigating public corruption and brings those who betray the public's trust to justice."

The criminal charges against Herbert Worthy carry total penalties of up to 30 years' imprisonment and fines of up to $1,000,000.

The criminal charges against Erwin Hollenquest carry total penalties of up 20 years' imprisonment and fines of up to $750,000.

The criminal charges against Sheldon Divers carry total penalties of up to 40 years' imprisonment and fines of up to $1,250,000.

An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilty beyond a reasonable doubt.