Eastern District of Louisiana
Press releases recorded for this federal judicial district.
Slidell Man Charged with Operating National Ponzi SchemeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN SPOSATO, age 64, of Slidell, was charged today in a one-count Bill of Information with wire fraud for his role in promoting and operating a national Ponzi scheme.
According to the Bill of Information, since approximately 2010, SPOSATO was affiliated with, owned, or operated numerous different companies, including: Pegasus Investment & Development Corporation, LLC; Pegasus Investments; Oil Eaters, LLC; Organic Miracle Incorporation; S&J Corporate Properties, LLC; Pegasus Demolition & Debris Removal Service, LLC; and Pegasus Truck Lines, Inc. SPOSATO represented to potential investors that the companies were all investment entities that offered participants the chance to invest in various low-risk, high-reward investment vehicles, including international bank instruments, cutting edge oil remediation and recovery products, and real estate transactions. SPOSATO primarily relied upon word-of-mouth and e-mail correspondence, in which he fraudulently represented that he had knowledge and expertise in financial investing, to attract new investors. SPOSATO told investors that the alleged investments were safe, secure, and never at risk.
SPOSATO did not actually invest the money in any legitimate investment vehicle, instead using it to make retail purchases for himself and his friends for various goods and services, including luxury items such as a new Chevrolet Camaro for one girlfriend and breast augmentation surgery for another girlfriend. In total, between about January 2010, and April 2014, approximately forty-eight individuals invested approximately $811,305 with SPOSATO and his companies.
To perpetuate his scheme, SPOSATO promised guaranteed and extraordinarily high rates of return – rates much higher than market rates –or so called “guaranteed” investments to potential investors, such as a $25,000 investment in “oil-clean remediation work” in the Gulf of Mexico and another $25,000 investment in the purchase of “1,000,000 gallons of EP 55 Bio Fertile” fertilizer. SPOSATO promised that the first investment would result in a profit of $25,000 within approximately two weeks and the second investment would result in a profit of up to $3,000,000 within one year. SPOSATO provided prospective investors false or fraudulent documents to make the investments appear legitimate and to conceal the true nature of the Ponzi scheme. When investors became impatient, SPOSATO used new investor money to pay lulling payments to other investors, which he characterized as partial payments for investments with an overdue return, in an effort to give investors a false sense of security, to deceive investors into believing their money was invested legitimately, and to conceal the true nature of the Ponzi scheme.
If convicted, SPOSATO faces a maximum term of imprisonment of twenty years, followed by up to three years of supervised release, and a $250,000 fine per count.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
John Sposato Bill of Information.pdf (142.8 KB)
New Orleans Man Sentenced for Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAMES CONRAD, JR., age 50, New Orleans, was sentenced today to one year and one day imprisonment for the theft of $247,800 in government funds.
U.S. District Judge Nannette Jolivette Brown sentenced CONRAD one year and one day imprisonment, to be followed by three years of supervised release. CONRAD was also ordered to pay restitution in the amount of $192,245.12.
CONRAD had pled guilty to stealing $196,690.43 from the United States Office of Personnel Management and $51,110 from Social Security Administration over the course of 15 years. CONRAD jointly held a bank account with his aunt, who died in 1998. Unaware of CONRAD’S aunt’s death, the two agencies continued wiring survivor and retirement benefits for her to the account. CONRAD, knowing the payments did not belong to him, received the benefits until 2013 when the agencies learned that his aunt had died. After the crime was discovered, the government recovered $55,555.31 from the bank account.
U.S. Attorney Polite praised the work of the Office of Personnel Management - Office of Inspector General and the Social Security Administration - Office of Inspector General in investigating this matter. Assistant U.S. Attorney Chandra Menon was in charge of this prosecution.
New Orleans C.P.A. Sentenced to 30 Months in Prison for Embezzlement SchemeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that PAUL E. GARDNER, age 57, of New Orleans, was sentenced today for an embezzlement scheme which took place during GARDNER’s employment with Clovelly Oil Co., L.L.C. (“Clovelly Oil”).
U.S. District Judge Nannette Jolivette Brown sentenced GARDNER to thirty months imprisonment, followed by two years supervised release. In addition to the term of imprisonment, GARDNER was ordered to pay restitution in the amount of $1,798,000.
According to court documents, GARDNER operated an accounting, consulting, and tax preparation business under the name Paul E. Gardner, C.P.A. for the past thirty years. In October 2007, Clovelly Oil hired GARDNER as a part-time bookkeeper. GARDNER was responsible for recording the receipts and disbursements for Clovelly and preparing the royalty checks for Clovelly’s more than two-hundred owners. In addition, GARDNER handled the bi-weekly payroll for all of Clovelly’s employees and he was responsible for paying himself.
Beginning in August 2010, and continuing until his termination in May 2014, GARDNER embezzled $1,798,000 from Clovelly Oil by manipulating the bi-weekly payroll records of Clovelly. Every two weeks, GARDNER logged into Clovelly’s on-line bank accounting system using his username and password given to him so he could prepare Clovelly’s payroll and increased his bi-weekly compensation by sometimes as much as $20,000. GARDNER diverted the illegally obtained funds into bank accounts held by the defendant. According to the Bill of Information, GARDNER used the embezzled funds to satisfy gambling debts incurred at a New Orleans casino.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
Houma Interpreter Indicted for Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TRINA MARIE BOURG, age 45, of Houma, was charged today in a five-count Superseding Indictment for crimes involving the solicitation of illegal payments from undocumented clients and their family members.
According to court records, on May 7, 2014, the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”) received information that BOURG, who worked as a Spanish language interpreter contract employee for the Office of the District Defender for the 32nd Judicial District for Terrebonne Parish, was soliciting illegal payments from undocumented clients. Unknown to the clients’ attorneys, BOURG represented to the clients that she would use the money she received to bribe United States Immigration Officials in order to remove the immigration detainers or federal immigration charges from the clients’ criminal or administrative cases.
In 2011, and again in 2014, BOURG solicited illegal payments totaling more than $5,000 from Client “A” and his family members. The Indictment alleges BOURG employed threats and intimidation to coerce the family members into paying BOURG.
The Indictment also alleges that for a payment of $12,000 to $20,000, BOURG offered to marry one of her clients in order to improve his immigration status.
It is important to note that no federal immigration officials have been implicated in this investigation, nor is it believed that any federal officials were complicit in BOURG’s crimes. BOURG was originally indicted in August 2014.
If convicted, BOURG faces a term of incarceration of up to twenty years and a fine of $250,000 per count. U.S. District Judge Susie Morgan set a trial date on July 27, 2015, before United States District Judge Susie Morgan.
U. S. Attorney Polite reiterated that the Superseding Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U. S. Department of Homeland Security-HSI (McAllen, TX and Houma, LA offices), the Louisiana State Police-Criminal Investigation Division, and the Terrebonne Parish Sheriff’s Office in investigating this matter. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba and Assistant U.S. Attorney Marquest Meeks.
Trina Marie Bourg Superseding Indictment.pdf (126.31 KB)
Slidell Man Sentenced to 30 Months for Money LaunderingRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RICHARD ZANCO, age 44, of Slidell, was sentenced today after previously pleading guilty to money laundering.
U.S. District Judge Susie Morgan sentenced ZANCO to thirty months imprisonment to be followed by three years of supervised release.
According to court documents, in about May 2012, ZANCO learned that someone had opened a brokerage account in his name and used that account to acquire collateralized mortgage obligations (CMOs), a type of bond, by fraudulent means. Even though he knew that the CMOs did not belong to him, ZANCO gained control of the accounts and arranged for the interest proceeds of the CMOs to be diverted to other financial accounts under his control. Between March 11, 2013, and September 19, 2013, ZANCO illegally used the funds, in the amount of approximately $343,998.82, to engage in a variety of financial transactions, including the purchase of multiple automobiles and one or more boats.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Internal Revenue Service in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Man Sentenced for False Statements in Relation to Blowout Preventer Testing on Oil Platform in Gulf of MexicoRead the Press Release
The United States Attorney’s Office for the Eastern District of Louisiana announced that RACE ADDINGTON, 49, of Houston, was sentenced today for making false statements to agencies or departments of the United States in relation to the veracity of blowout preventer testing on an offshore oil and gas platform located at Ship Shoal 225 on a federal mineral lease in the Gulf of Mexico.
U.S. District Judge Helen G. Berrigan sentenced ADDINGTON to one year probation and 40 hours of community service.
According to court documents, on or about November 27, 2012, production and well workover operations were being conducted on the platform and the blowout preventer system had to be tested. A blowout preventer system is designed to ensure well control and prevent potential release of oil and gas and possible loss of well control. The blowout preventer pressure chart that recorded the testing of the blowout preventer testing done on November 27, only recorded 6 of the 7 required components as being tested and was not signed nor dated by any representative on the platform.
On or about November 28, 2012, ADDINGTON, as the well site supervisor for the platform saw the results of the blowout preventer testing and had workers create a false blowout preventer test. The next day when Bureau of Safety and Environmental Enforcement (BSEE) inspectors conducted a routine inspection of the platform, ADDINGTON presented the fabricated blowout preventer pressure test chart to the BSEE inspectors with the expectation that it would be a passing test and the inspectors would not find the platform to be in non-compliance for failing to properly test the blowout preventer system.
On December 6, 2012, during an investigation of the veracity of the blowout preventer test by the Department of Interior’s Investigation and Review Unit, ADDINGTON lied and told investigators the false chart he provided inspectors was a test of the chart recorder and that the inspectors mistakenly retrieved the wrong pressure chart from the files when in truth and in fact he knew that he had the blowout preventer pressure test chart fabricated and personally presented the chart to inspectors as the actual test record for the platform’s blowout preventer system.
The case was investigated by the Department of Interior-Office of Inspector General (Energy Investigations Unit) with assistance from the Investigations and Review Unit, Bureau of Safety and Environmental Enforcement and the Environmental Protection Agency-Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Emily K. Greenfield of the United States Attorney’s Office’s National Security Unit.
Arizona Man Sentenced to 30 Years Imprisonment for the Sexual Exploitation of ChildrenRead the Press Release
U.S. Attorney Kenneth A. Polite announced that VITTORIO FRANCESCO GONZALEZ-CASTILLO, age 27, of Tucson, Arizona, was sentenced yesterday by District of Arizona Chief Judge Raner C. Collins to thirty years’ incarceration for his part in two federal child pornography cases. GONZALEZ’s term of imprisonment will be followed by lifetime supervised release with stringent sex offender conditions and the requirement that he register as a sex offender.
In the first case, which arose in Arizona, GONZALEZ-CASTILLO was charged with distribution, receipt, and possession of child pornography after a 2009 investigation by the Federal Bureau of Investigation (FBI) revealed GONZALEZ-CASTILLO’s large-scale trading and distribution of graphic and sadistic child pornography.
In the second case, as a result of a nationwide child exploitation investigation, special agents with the New Orleans Office of the United States Department of Homeland Security, Homeland Security Investigations (“HSI”), determined that GONZALEZ-CASTILLO was responsible for producing videos depicting the sexual exploitation of children. According to court documents, beginning in 2012, and continuing until January 2013, GONZALEZ-CASTILLO conspired with Jonathan Johnson, the administrator of a multi-national child pornography website, to create and post videos depicting the sexual exploitation of children on the Internet. On January 24, 2014, GONZALEZ-CASTILLO was charged with conspiracy to produce child pornography for his part in producing a series of videos depicting a minor engaging in sexually explicit conduct in 2012 and 2013.
GONZALEZ-CASTILLO entered guilty pleas in both cases on November 12, 2014, after the Louisiana matter was transferred to the District of Arizona.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Polite praised the work of the Homeland Security Investigations in Louisiana, Arizona, and California, as well as the U.S. Postal Inspection Service in Louisiana, and the Federal Bureau of Investigation in Tucson, Arizona, Birmingham, Alabama, and Albany, New York in investigating this matter. Assistant U.S. Attorney Carin C. Duryee of the District of Arizona and Assistant U.S. Attorney Brian M. Klebba of the Eastern District of Louisiana were in charge of the prosecution.
New Orleans Jury Convicts Two Doctors, a Nurse and an Office Manager for Roles in $50 Million Fraud SchemeRead the Press Release
WASHINGTON – A jury in New Orleans convicted four employees of medical service clinics yesterday for their roles in a $50 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Field Office, Special Agent in Charge Mike Fields of the Department of Health and Human Services’ Office of the Inspector General (HHS-OIG) Dallas Regional Office and Louisiana Attorney General James D. “Buddy” Caldwell made the announcement.
Barbara Smith, M.D., 66, of Metairie, Louisiana; Roy Berkowitz, M.D., 69, of Slidell, Louisiana; Beverly Breaux, 67, of New Orleans; and Joe Ann Murthil, 57, of New Orleans, were convicted on all counts after a five-day jury trial before Chief U.S. District Court Judge Sarah S. Vance of the Eastern District of Louisiana.
Evidence introduced at trial showed that the defendants and others carried out a home health care fraud scheme in and around New Orleans through multiple companies over the course of more than 10 years. Smith and Berkowitz falsely claimed that thousands of Medicare recipients were homebound and required nursing or therapy services to be provided in their homes. Breaux was a registered nurse who falsely certified that these patients were homebound, and falsely claimed to have treated patients that she had not seen. Murthil was an office manager and biller at one home health company who assisted with the payment of illegal kickbacks to patient recruiters. Murthil also submitted false claims to Medicare stating that patients were homebound when some of these patients had jobs, had not received services or did not want services. From 2007 through 2014, the companies in this scheme submitted more than $56 million in claims to Medicare, the vast majority of which were fraudulent. Medicare paid approximately $50.7 million on these claims.
Sentencing for the defendants is scheduled for Aug. 26, 2015. In total, 13 defendants have been charged for their roles in this scheme. Nine other defendants previously pleaded guilty.
This case was investigated by the FBI, HHS-OIG and the Louisiana Attorney General’s Medicaid Fraud Control Unit, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana. This case was prosecuted by Trial Attorneys William Kanellis and Antonio Pozos and Assistant Chief Ben Curtis of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.justice.gov/criminal-fraud/health-care-fraud-unit.
Metairie Men Sentenced on Federal Firearm ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSEPH F. GAGLIANO, age 55, and DOMINICK GULLO, age 72, both from Metairie, were each sentenced today for violating federal firearm laws.
U.S. District Judge Eldon E. Fallon sentenced GAGLIANO to 28 months imprisonment, to be followed by 3 years supervised release. GULLO was sentenced to serve 5 months imprisonment, to be followed by 3 years of supervised release.
GAGLIANO pled guilty to being a convicted felon in possession of a loaded, Ruger model, .22 caliber scope-mounted rifle. GAGLIANO and GULLO both pled guilty to being in possession of an unregistered silencer that fit the .22 caliber rifle. The rifle and silencer, along with other evidence, was recovered from an older model Ford van occupied by both GAGLIANO and GULLO. A Jefferson Parish Sheriff’s Deputy stopped the van on May 7, 2014, after learning the van had a stolen license plate affixed to it. Subsequent investigation by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, along with Jefferson Parish Sheriff’s detectives, revealed modifications to the van were made at GAGLIANO’s instruction.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson Parish Sheriff’s Office for their work investigating this matter. Assistant United States Attorneys William J. Quinlan, Jr. and Elizabeth Privitera were in charge of the prosecution.
Honduran National Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANGEL CORNEJO-MORENO, age 44, a Honduran citizen, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Mary Ann Vial Lemmon sentenced CORNEJO-MORENO to five months imprisonment followed by one year of supervised release, and a $100 special assessment. Following his incarceration, CORNEJO-MORENO will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about December 8, 2014, Jefferson Parish Sheriff deputies arrested CORNEJO-MORENO for driving while intoxicated and driving without a license. The deputies then contacted agents of United States Immigration & Customs Enforcement (ICE), who discovered that CORNEJO-MORENO was a Honduran national who had been previously deported from the United States in 2003 and 2009. ICE agents confirmed that CORNEJO-MORENO had again illegally reentered the United States without inspection by a United States Immigration official. Agents placed an ICE detainer on CORNEJO-MORENO in order to hold him for criminal prosecution.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement Agency in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
Belle Chasse Man Sentenced for Misuse of a Mariner LicenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WILLIE ENGLISH, age 42, of Belle Chasse, was sentenced today for his misuse of a federal license.
U.S. District Judge Mary Ann Vial Lemmon sentenced ENGLISH to three years probation with six months home detention.
According to the court documents, in November 2008, ENGLISH used a fake U.S. Coast Guard Merchant Mariner’s License, purporting to be a Master of vessels not more than 100 gross tons, to maintain employment as a vessel captain at Bud’s Boat Rental in Belle Chase, Louisiana. ENGLISH admitted he made the license while he was a deckhand onboard another vessel for another employer.
U.S. Attorney Polite praised the work of the Coast Guard Investigative Service in investigating this matter. Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.
New Orleans Woman Pleads Guilty to Stealing Educational FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KIM CASSELL, age 52, of Ruston, pled guilty today to stealing money from Open World Family Services, Inc. (“Open World”). Open World was a non-profit 501(c)(3) charitable corporation organized for the purpose of helping students in the greater New Orleans area grow academically.
According to court documents, from March 2010 until June 2012, CASSELL knowingly used more than $140,000 in federal grant money for her personal benefit, rather than for its intended educational purposes.
CASSELL faces a maximum term of imprisonment of ten years, three years of supervised release following any term of imprisonment, a $250,000 fine, and restitution to the United States Department of Education. U.S. DistrictJudge Ivan L.R. Lemelle set sentencing for August 19, 2015.
U.S. Attorney Polite praised the work of the U.S. Department of Education, the Federal Bureau of Investigation, and the Office of the Louisiana Legislative Auditor in investigating this matter. Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.
Kim Cassell Factual Basis.pdf (332.88 KB)
Former Orleans Parish School Board Member Ira Thomas Pleads Guilty to Conspiracy to Commit Federal Bribery and Honest Services Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that IRA THOMAS, 56, of New Orleans and former member of the Orleans Parish School Board (“OPSB”), pled guilty today to charges of conspiracy to commit bribery and honest services wire fraud.
THOMAS admitted that beginning in September 2013 and continuing until January 2015, he and others participated in a conspiracy to commit bribery and honest services wire fraud. THOMAS admitted that, in his role as an Orleans Parish School Board Member, he engaged in a scheme to defraud Orleans Parish and its citizens of his honest services through bribery and a kickback scheme, whereby THOMAS used his public office and official capacity to provide favorable treatment, including attempting to facilitate the awarding of a contract, that was designed to benefit the business and financial interest of an individual who provided him with a bribe and kickback in the form of cash payment disguised as a campaign contribution.
According to court documents, in September 2013 a cooperating witness (“CW”) was approached by an OPSB employee, who offered the CW a janitorial services contract that would soon be up for bid by the OPSB in exchange for a monetary payoff. During the fall of 2013, the CW, THOMAS, the OPSB employee, and at times another private citizen, met to discuss this contract. These conversations were recorded by the CW with the assistance of the FBI. Ultimately, it was decided that the CW would pay $5,000 to THOMAS in the form of a “campaign contribution” in exchange for THOMAS’ and the OPSB employee’s assistance regarding the janitorial services contract. In December 2013, the CW delivered $5,000 in cash to the private citizen acting as a conduit for THOMAS, which was video recorded. This money was then delivered to THOMAS. During the fall of 2014, THOMAS and the OPSB employee discussed over recorded telephone conversations how to alter the bid process so that the CW would be given an improper advantage in bidding for the janitorial services contract, which was valued over $5,000.
THOMAS faces statutory penalties of up to five years in prison, a $250,000 fine and three years of supervised release. U.S. District Judge Susie Morgan set sentencing on August 12, 2015.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter and thanked the Metropolitan Crime Commission for their assistance. Assistant U.S. Attorney Sean Toomey is in charge of the prosecution.
Ira Thomas Factual Basis.pdf (14.86 KB)
FnD Gang Member Pleads Guilty to Racketeering and Narcotics ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JEREMIAH JACKSON, a/k/a “Rocky,” age 24, of New Orleans, pled guilty today in the racketeering conspiracy case involving the Frenchmen/Derbingy gang, or “FnD.”
According to court documents, JACKSON pled guilty to four counts of the Third Superseding Indictment, including Racketeer Influenced and Corrupt Organizations (RICO) conspiracy, conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine, conspiracy to possess firearms in furtherance of a drug trafficking conspiracy, and assault with a dangerous weapon in furtherance of a racketeering enterprise.
JACKSON faces a maximum life imprisonment for the RICO violation, a mandatory minimum of 20 years to life imprisonment on the drug conspiracy charge, and a maximum of 20 years as to each charge of conspiracy to possess firearms in furtherance of a drug trafficking conspiracy and assault with a dangerous weapon in furtherance of a drug trafficking conspiracy.
According to court documents, FnD constituted a racketeering “enterprise” under federal law. JACKSON, as a member of this enterprise, conspired to commit numerous overt acts in furtherance of this enterprise. These acts included the distribution of illegal narcotics, such as heroin and crack cocaine, as well as crimes of violence, including assault with firearms. JACKSON admitted to the shooting of an individual who was sitting in his car on April 16, 2011, on the 2000 block of Prieur Street in New Orleans. The victim was shot in the stomach by JACKSON because he resembled a rival drug dealer. The New Orleans Police Department Crime Lab matched casings found at the scene to a gun that was found in JACKSON’s possession on July 19, 2011.
Three other defendants previously pled guilty in the course of this prosecution: CRYSTAL SCOTT, RICHMOND SMITH, and GRALEN BENSON. The grand jury subsequently returned a superseding indictment charging the remaining defendants with RICO conspiracy, among other charges. JACKSON is the first defendant to have pled guilty to RICO conspiracy.
Five defendants remain in this case: TRAVIS SCOTT, STANLEY SCOTT, SHAWN SCOTT, AKEIN SCOTT, and BRIAN BENSON. U.S. District Judge Ivan L.R. Lemelle scheduled those defendants for trial on July 13, 2015.
The indictment is a product of an ongoing investigation into the violent acts in furtherance of drug trafficking by the FnD gang. It represents the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang (“MAG”), including the United States Attorney’s Office, the Orleans Parish District Attorney’s Office, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and officers of the New Orleans Police Department. Federal and local authorities also utilized tips through the Crimestoppers Program in the successful investigation of these crimes.
Assistant United States Attorney Matthew Payne and Special Assistant United States Attorney Brian Ebarb, who is assigned from the Orleans Parish District Attorney’s Office, are in charge of the prosecution.
Jeremiah Jackson Factual Basis.pdf (4.47 MB)
St. James Resident Charged with Selling and Possessing Migratory BirdsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROYLEY A. FOLSE, JR., age 69, a resident of St. James Parish, was charged today in an eight-count Indictment with selling and possessing migratory game birds.
According to the Indictment, from June 2010 to December 2011, FOSLE illegally bartered and sold for cash four yellow-crowned night herons and sixty-two white ibis, which are migratory birds protected under the Migratory Bird Treaty Act (MBTA). The Indictment also charges that on April 2, 2013, FOLSE possessed a Barn Owl and a Red-Tailed Hawk.
If convicted for the sale of migratory birds, FOLSE faces a maximum term of imprisonment of two years, followed by one year of supervised release, and a maximum fine of $2,000. A conviction for the possession of the Barn Owl and the Red-Tailed Hawk carries a maximum term of imprisonment of six months, followed by one year of supervised release, and a maximum fine of $15,000.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Louisiana Department of Wildlife and Fisheries and the United States Fish and Wildlife Service in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Royley Folse, Jr. Indictment (1.92 MB)
Gray, Louisiana Man Indicted for Receipt and Distribution of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARION VEAL, age 20, of Gray, Louisiana, was indicted today for crimes involving the sexual exploitation of children.
VEAL was indicted as a result of a child exploitation investigation conducted by the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”) and the Louisiana Attorney General’s Office, High Tech Crime Unit (“LAGO”). According to court records, on January 7, 2015, HSI and LAGO agents executed a search warrant at VEAL’s residence after determining he received and distributed images depicting the sexual victimization of children. On March 3, 2015, VEAL was taken into federal custody pursuant to a federal criminal complaint.
If convicted, VEAL faces a mandatory minimum penalty of five years and a maximum penalty of twenty years, followed by up to a lifetime term of supervised release, and a $250,000 fine per count. In addition, VEAL will be required to register as a sex offender.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney praised the work of the U.S. Department of Homeland Security-HSI and the Louisiana Attorney General’s Office, High Tech Crime Unit in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Darion Veal Indictment.pdf (176.78 KB)
Defendant Arrested Pursuant to Grand Jury IndictmentRead the Press Release
U.S. Attorney Kenneth A. Polite announced the arrest of TARAY BUTLER following his Indictment for being a felon in possession of a firearm. BUTLER was arrested on Wednesday, May 6, 2015, with assistance of the United States Marshals Service.
The Indictment charges that on October 14, 2014, BUTLER was arrested by the New Orleans Police Department and found to be in possession of a firearm with an extended magazine. BUTLER has a prior felony conviction from Orleans Parish Criminal District Court. If convicted, BUTLER faces a maximum ten years in the Bureau of Prisons, a $250,000 fine, three years of supervised release, and a $100.00 special assessment fee.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department for their work in investigating this case. Assistant United States Attorney Myles Ranier is in charge of the prosecution.
Taray Butler Indictment.pdf (1.62 MB)
Wakefield Woman Sentenced for Misprision of a FelonyRead the Press Release
U.S. Attorney Kenneth A. Polite announced today that LINDSEY DOOLEY, age 25, a resident of Wakefield, Louisiana, was sentenced after having previously pled guilty to misprision of a felony.
U.S. District Judge Jane Triche Milazzo sentenced DOOLEY to 3.5 years probation.
According to court documents, on May 8, 2013, while conducting a related heroin investigation, Jefferson Parish Sheriff’s Office detectives searched co-defendant STEPHEN FARRELL and DOOLEY’S residence in Metairie. During the search, detectives found a loaded Taurus International .380 caliber firearm and drug paraphernalia. FARRELL was convicted in federal court for possession of a firearm by a convicted felon, and was sentenced by Judge Milazzo to 68 months in federal prison. Court records reveal that DOOLEY concealed FARRELL’S heroin distribution activities by providing a place for FARRELL to store and package heroin.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Nolan D. Paige was in charge of the prosecution.
Texas Company Pleads Guilty to Violations of the Federal Lacey ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GARCIA SHRIMP CO., LLC, a Texas Limited Liability Company headquartered in Brownsville, Texas, pled guilty today to a one-count Bill of Information for violating the Federal Lacey Act.
According to court documents, in early October 2012, GARCIA SHRIMP purchased 35,000 pounds of Mexican shrimp from Mexican businessmen. The shrimp was packaged in plastic crates typically used by Mexican supermarket wholesalers. After taking receipt of the shrimp, company personnel removed product of Mexico labels from the packages containing the shrimp and attached new tags indicating that the shrimp was caught in U.S. waters. Company personnel also conducted an offloading ruse, whereby the shrimp was trucked down to GARCIA SHRIMP’s dock facility and then re-weighed and wrapped to make it appear as if the shrimp was caught by a local U.S. flagged fishing vessel. Then company personnel created false documents and bills of lading that falsely read, “Product of U.S.A., Wild Caught Gulf Shrimp.” On or about October 12, 2012, GARCIA SHRIMP sold the shrimp to a New Orleans based seafood distributor.
GARCIA SHRIMP faces a maximum fine of $500,000 and an organizational probationary term of five years. U.S. District Judge Nannette Jolivette Brown set sentencing for September 24, 2015.
U.S. Attorney Polite praised the work of the U.S Department of Commerce NOAA Office of Law Enforcement, in investigating this matter. Eastern District of Louisiana Assistant U. S. Attorney Spiro G. Latsis and Department of Justice Trial Attorney Christopher L. Hale with the Environmental Crimes Section in Washington D.C. are in charge of the prosecution.
Garcia Shrimp.pdf (2.37 MB)
San Francisco Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GEOFFREY WALKER, age 65, of San Francisco, California, pled guilty today for crimes involving the sexual exploitation of children.
According to court documents, as a result of an undercover operation by federal law enforcement agents with the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”) into the sexual exploitation of children and the distribution of child pornography in the Eastern District of Louisiana, it was determined that WALKER was utilizing his email account to distribute child pornography from California to Louisiana. On September 5, 2014, a federal search warrant was executed at WALKER’s residence in California and HSI agents seized his computer pursuant to the search warrant. WALKER was taken into federal custody at the time of the execution of the search warrant. HSI agents established that on eleven different occasions, WALKER emailed sexually explicit images of minors to an undercover HSI agent located in New Orleans. A subsequent computer forensic search of WALKER’s computer by HSI yielded over 9,000 images and over 1,000 videos depicting minors engaging in sexually explicit activity.
WALKER faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of twenty years, followed by up to a lifetime term of supervised release, and a $250,000 fine. In addition, WALKER will be required to register as a sex offender. U.S. Judge Susie Morgan set sentencing for August 12, 2015.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Kenneth Polite praised the work of the U. S. Department of Homeland Security, HSI in investigating this matter. Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.
Geoffrey Walker Factual Basis.pdf (48.26 KB)
Salvadorian National Indicted for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RAMON ANTONIO SORIANO-CANIZALEZ, age 28, a citizen of El Salvador, was charged today in a one-count Indictment with illegal reentry into the United States after having been previously deported.
According to the Indictment, SORIANO-CANIZALEZ was encountered by Immigration & Customs Enforcement agents in the Eastern District of Louisiana on April 29, 2015, after records showed he had been previously deported from the United States to El Salvador on July 26, 2010.
If convicted, SORIANO-CANIZALEZ faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Immigration & Customs Enforcement. Assistant U.S. Attorney Emily K. Greenfield is in charge of the prosecution.
Ramon Antonio Soriano-Canizalez Indictment.pdf (124.17 KB)
New Orleans Man Indicted for Violations of the Federal Gun Control Act, the Federal Controlled Substances Act, and for AssaultRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STEPHEN ELLIS, age 52, a resident of New Orleans, was charged today in a four-count Indictment for violations of the Federal Gun Control Act, the Federal Controlled Substances Act, and for Assault.
According to the Indictment, ELLIS possessed firearms subsequent to being convicted of a felony offense, possessed firearms in furtherance of a drug-trafficking crime, possessed with the intent to distribute a quantity of cocaine hydrochloride, a Schedule II drug controlled substance, and committed an assault on law enforcement officers during the execution of a search warrant.
The charges arose out of the execution of a search warrant at ELLIS’s home in New Orleans, in which gun fire was exchanged as the agents tried to enter the home, resulting in ELLIS being wounded in the leg.
In convicted, ELLIS faces:
- Count 1, being a felon-in-possession of a firearm: up to ten years imprisonment, a fine of up to $250,000, and up to three years of supervised release following imprisonment;
- Count 2, possession of a firearm in furtherance of a drug trafficking crime: a minimum of five years up to life imprisonment, to run consecutive to any other sentence, and up to five years of supervised release following imprisonment;
- Count 3, assault with a deadly weapon: up to ten years imprisonment, a fine of up to $250,000, and up to three years of supervised release following imprisonment; and,
- Count 4, possession with intent to distribute a quantity of cocaine hydrochloride: up to twenty years imprisonment and/or a $1,000,000 fine, followed by at least three years of supervised release.
U.S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Homeland Security Investigation, the Jefferson Parish Sheriff’s Office, the New Orleans Police Department, and the Gretna Police Department in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
Honduran National Sentenced for Illegal Use of a Social Security NumberRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RONY RIVERA-GONZALES, age 23, a citizen of Honduras and residing in Hammond, was sentenced after previously pleading guilty to a one-count Indictment for illegal use of a Social Security Number.
U.S. District Judge Marry Lemmon sentenced GONZALES to time served followed by one year of supervised release, and a $100 special assessment. GONZALES will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about August 20, 2014, GONZALES submitted a social security number which did not belong to him to a Louisiana Department of Motor Vehicles Office in order to obtain a Louisiana Identification Card. Based on that false submission, an employee with the Department of Motor Vehicles issued GONZALES a Louisiana Identification Card.
U.S. Attorney Polite praised the work of the Homeland Security Investigations and the Louisiana State Police in investigating this matter. Assistant United States Attorney Spiro G. Latsis was in charge of the prosecution.
Missouri Man Sentenced for Conspiracy to Commit Mail FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROGER NADEAU, age 51, a resident of Linn, Missouri, was sentenced today for his role in a scheme to defraud the Louisiana Workforce Commission of unemployment benefits. NADEAU previously pled guilty to conspiracy to commit mail fraud.
U.S. District Judge Helen G. Berrigan sentenced NADEAU to one year probation and a $500 fine. Additionally, NADEAU was ordered to pay $2,470 in restitution to the Louisiana Workforce Commission (“LWC”).
According to the court records, beginning at a time unknown, but no later than on or about September 24, 2009, and continuing through on or about January 11, 2014, NADEAU along with CHARLES MIZELL, JR., TERRY CASTILOW, WILLIAM DARRYL KING, DAVID LOWE, JAMES CREEL, JERRY ATHEY, TENILLE NIELSON, and JACQUELINE MYERS conspired to defraud the LWC of money and property by means of false and fraudulent representations, pretenses and promises, well knowing the representations, pretenses and promises were false, and mailed and caused to be mailed through the United States Postal Service unemployment (“UI”) benefit claim forms for the purpose of obtaining UI benefits to which they were not entitled. Specifically, at the time CASTILOW, KING, LOWE, CREEL, ATHEY, NIELSON, MYERS, and NADEAU applied for UI benefits and made weekly representations to LWC that they were unemployed and not getting paid, MIZELL, JR., actually employed them at Chamico, Inc., a Bogalusa construction company that concentrates on public, municipal, and industrial contracts.
MIZELL, JR. was the President of Chamico and, according to the court records, asked NADEAU and his other employees to fraudulently file for unemployment so that he would not have to pay their full salaries during tough economic times for his business. NADEAU and the other employees would each get cash from Chamico during the weeks they were claiming unemployment benefits reporting that they were not working and not getting any income from work.
U.S. Attorney Polite praised the work of the Department of Labor-OIG and the Federal Bureau of Investigation with assistance from the Louisiana Workforce Commission in investigating this case. Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.
Columbian National Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANTONIO CAICEO-VALENCIA, age 42, a citizen of Columbia, was sentenced after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Helen G. Berrigan sentenced CAICEO-VALENCIA to 30 months imprisonment followed by 3 year of supervised release, and a $100 special assessment. Upon completion of his sentence, CAICEO-VALENCIA will be surrendered to the custody of U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about November 20, 2014, CAICEO-VALENCIA was found in the United States after having been officially deported and removed on or about December 27, 2010
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, ICE Enforcement and Removal Operations in investigating this matter. Assistant United States Attorney Spiro G. Latsis was in charge of the prosecution.
Salvadoran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LUIS ADALBERTO MORADIAGA, age 44, a citizen of El Salvador, pled guilty on today to a one-count Indictment for illegal reentry of removed alien.
According to court records, on or about March 5, 2015, MORADIAGA was found in the United States after having been officially deported and removed on or about August 25, 2000.
MORADIAGA faces a maximum term of imprisonment of two years, followed by one year of supervised release, a fine of $250,000, and a $100 special assessment. U.S. District Judge Jay C. Zainey set sentencing for July 28, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Homeland Security Investigations in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Luis Adalberto Moradiaga Factual Basis
New Orleans Man Pleads Guilty to Maliciously Conveying False InformationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAHVAR HOOKS, age 31, of New Orleans, pled guilty today to a one-count Superseding Indictment charging him with maliciously conveying false information in violation of Title 18, United States Code, Section 844(e).
According to court records, from August 12, 2013 through August 19, 2013, HOOKS made in excess of forty telephonic bomb threats. Victims of these threatening phone calls include the Orleans Parish Criminal District Court and the New Orleans Municipal/Traffic Court along with schools, hotels, casinos, and other government buildings. In an interview with Officers of the New Orleans Police Department, HOOKS admitted to making the telephone calls.
If convicted, the maximum penalty as to each charge is ten years imprisonment, a $250,000 fine, and a three year term of supervised release following imprisonment. U.S. District Judge Lance M. Africk set sentencing for August 6, 2015.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Gregory M. Kennedy is in charge of the prosecution.
Jahvar Hooks Factual Basis
Houma Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHAD LANDRY, age 43, of Houma, pled guilty today to charges that he conspired to distribute over 500 grams of methamphetamine and unlawfully possessed a firearm in furtherance of his methamphetamine conspiracy.
The drug offense carries a sentence of ten years to life imprisonment, a fine of up to $10,000,000, and a minimum of five years of supervised release following any term of imprisonment. The gun offense carries a minimum term of imprisonment of five years imprisonment, a fine of up to $250,000, and up to five years of supervised release following any term of imprisonment.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, with assistance from the Terrebonne Parish Sheriff’s Office and Louisiana State Police in investigating this matter. Assistant U.S. Attorney Brandon S. Long is in charge of the prosecution.
Chad Landry Factual Basis
Guatemalan National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SERGIO TULIO VARGAS-VARGAS, age 25, a citizen of Guatemala, was charged today in a one-count Indictment with illegal reentry of a removed alien.
According to the Indictment, VARGAS-VARGAS reentered the United States after having been previously deported on October 25, 2012. If convicted, VARGAS-VARGAS faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement Agency in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Sergio Tulio Vargas-Vargas Indictment
Eight Persons Charged with Robbing Metro Drug Dealers; One Charged with Murder of WitnessRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GREGORY DENSON, 52, COREY DENSON, 31, CARL SINGLETON, 30, JOE LEE MILLER, 30, QUINCY JYNES, 27, BRIDGETT MILES, 44, ESCARLITA CARMOUCHE, 48, and ANNETTE ROBINSON, 37, all of New Orleans, were charged today in a fourteen-count Superseding Indictment. All defendants were charged with Conspiracy to violate the Hobbs Act, which prohibits interference with interstate commerce through violence. Defendants DENSON, COREY DENSON, MILLER, JYNES and SINGLETON are also charged with various robberies and weapons offenses. DENSON is charged with the murder of an individual to stop that individual from providing information to law enforcement authorities about his (DENSON’S) activities. MILLER and JYNES are charged with helping to dispose of the body.
COUNT
CHARGE
DEFENDANTS
PUNISHMENT RANGE
1
18 U.S.C.1951-Conspiracy to Commit Hobbs Act Robbery
All
NMT 20 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
2
18 U.S.C.1951-Hobbs Act Robbery
Denson, Miller, Jynes
NMT 20 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
3
18 U.S.C. 924(c)-Brandishing a Firearm during and in relation to a crime of violence
Denson, Miller, Jynes
NMT 7 Yrs Consecutive, NMT $250,000 Fine, NMT 2 Yrs Sup. Rel.
4
18 U.S.C. 922(g)(1)-Felon in Possession of a Firearm
Miller
NMT 10 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
5
18 U.S.C. 922(g)(1)-Felon in Possession of a Firearm
Jynes
NMT 10 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
6
18 U.S.C. 924(c)-Brandishing a Firearm during and in relation to a crime of violence
Denson, Corey, Denson
NMT 7 Yrs Consecutive, NMT $250,000 Fine, NMT 2 Yrs Sup. Rel. As to Deft Jynes, a second conviction results in a consecutive 25 yr sentence
7
18 U.S.C. 922(g)(1)-Felon in Possession of a Firearm
Corey, Denson
NMT 10 Years, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
8
18 U.S.C.1951-Hobbs Act Robbery
Denson, Miller, Jynes, Singleton, Corey, Denson
NMT 20 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
9
18 U.S.C. 924(c)-Discharging a Firearm during and in relation to a crime of violence
Denson, Miller, Jynes, Corey, Denson, Singleton
NMT 10 Yrs Consecutive, NMT $250,000 Fine, NMT 3Yrs Sup. Rel. As to Defts Denson and Miller, a 2ndconviction results in a consecutive 25 yr sentence. As to Deft Jynes, a 3rd conviction results in a 2nd consecutive 25 yr sentence.
10
18 U.S.C. 922(g)(1)-Felon in Possession of a Firearm
Miller
NMT 10 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
11
18 U.S.C. 922(g)(1)-Felon in Possession of a Firearm
Jynes
NMT 10 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
12
18 U.S.C. 1512-Murder of a Federal Witness
Denson
NMT Life Imprisonment or Death, NMT $250,000 Fine, NMT 5 Years Sup. Rel.
13
18 U.S.C. 3-Accessory After the Fact
Jynes, Miller
NMT 15 Years, NMT $250,000 Fine, NMT 3 Yrs. Sup.Rel.
14
18 U.S.C. 1512(c)(2)-Obstructing an Investigation
Jynes, Miller
NMT 20 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
U.S. Attorney Polite reiterated that the charges in the Indictment are merely charges, and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Mark A. Miller and Michael M. Simpson are in charge of the prosecution.
Gregory Denson, et al Superseding Indictment
Chalmette Man Indicted for Violations of the Federal Controlled Substances ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAMIEN WILSON, age 35, of Chalmette, was charged in a three-count Indictment for violations of the Federal Controlled Substances Act, which was recently unsealed.
According to the Indictment, WILSON conspired to possess with the intent to distribute and to distribute a kilogram or more of heroin and distributed heroin on two different occasions.
If convicted, WILSON faces a mandatory minimum sentence of ten years up to life imprisonment, followed by at least five years of supervised release, and a fine of up to $10,000,000.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Damien Wilson Indictment
U.S. Attorney Polite Appointed to AG’s Advisory CommitteeRead the Press Release
Today, Attorney General Loretta E. Lynch announced the appointment of Kenneth A. Polite, U.S. Attorney for the Eastern District of Louisiana, along with five other U.S. Attorneys, to the Attorney General’s Advisory Committee (AGAC).
Created in 1973, the AGAC represents the voice of the 93 U.S. Attorneys across the nation and reports to the Attorney General through the Deputy Attorney General. It provides advice and counsel to the Attorney General and other senior leaders in the U.S. Department of Justice on policy, management and operational issues, helping to shape policies to accomplish the Department’s core mission of serving justice.
“The distinguished women and men who serve on the Attorney General’s Advisory Committee provide invaluable advice and wise counsel that help shape the Justice Department’s approach to combating crime, violence, and injustice in every community across the country,” said Attorney General Lynch. “They help introduce new ideas, formulate innovative policies, and design fresh strategies. They foster collaboration across our U.S. Attorney’s Offices and with Main Justice. And, in all of their work, they seek to strengthen and improve law enforcement efforts at every level. As a former chair of the AGAC, I am proud to welcome six outstanding new members to the Committee, and I look forward to all that we will achieve, with their help, in the days ahead.”
New Orleans Woman Pleads Guilty to Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SYLVIA CHESTNUT, age 37, of New Orleans, pled guilty today to a one-count Bill of Information for stealing property from a Navy Exchange Store in Florida.
According to court records, between November 12, 2011 and December 18, 2011, CHESTNUT wrote 43 worthless checks, totaling $20,549.36, to two Naval Exchange Stores located at the Naval Air Station in Jacksonville, Florida, and Naval Station Mayport, Florida. CHESTNUT used the worthless checks to purchase clothing, household items, pre-paid Visa cards, and other personal items.
CHESTNUT faces a maximum of 10 years imprisonment, to be followed by three years of supervised release, and a fine of $250,000. U.S. District Judge Lance M. Africk set sentencing for July 23, 2015.
U.S. Attorney Polite praised the work of the Naval Criminal Investigative Service in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis and Assistant U.S. Attorney Kevin Frein of the United States Attorney’s Office for the Middle District of Florida are in charge of the prosecution.
Sylvia Chestnut Factual Basis
Mississippi Man Pleads Guilty to Possession and Transportation of Stolen FirearmsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALEX BRASINGTON, age 22, of Carriere, Mississippi, pled guilty today to conspiracy to possess and transport stolen firearms in interstate commerce and transportation of stolen firearms in interstate commerce. A five-count superseding indictment was returned on October 3, 2014, charging BRASINGTON, and co-defendants BRITTANY BAUER and BRITTEN PARSONS, with conspiracy, possession and transportation of stolen firearms in interstate commerce.
According to court documents, in January and February 2013, BRASINGTON, BAUER and PARSONS transported nine stolen firearms in interstate commerce, from Alabama to Louisiana. The investigation revealed that the firearms had been stolen during residence burglaries in Huntsville, Alabama. On February 14, 2013, agents conducted a search of BAUER’s New Orleans apartment and found five stolen firearms and approximately 1700 rounds of ammunition. Court documents reflect that agents also recovered four stolen firearms and ammunition that BRASINGTON, BAUER and PARSONS sold to individuals in New Orleans. BRASINGTON had previously been found in possession of a stolen firearm on January 31, 2013.
BRASINGTON faces a maximum of ten years imprisonment, followed by three years of supervised release. U.S. District Judge Jane Triche Milazzo set sentencing for July 20, 2015.
U.S. Attorney Polite stated, “Today’s guilty plea underscores our Office’s continued commitment to prosecuting those who illegally transport stolen firearms into our District.”
U.S. Attorney Polite praised the work of the ATF New Orleans Division Office, New Orleans Police Department, Pearl River (LA) Police Department, Pearl River County (MS) Sheriff’s Office, and Huntsville Police Department in investigating this matter. Assistant United States Attorney Nolan D. Paige is in charge of the prosecution.
Alex Brasington Factual Basis
Mexican Nationals Plead Guilty to Violations of the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROBERTO HERRERA-VILLAGOMEZ, age 23, and JUAN MANUEL HERRERA-VILLAGOMEZ, age 34, both citizens of Mexico, pled guilty today to a two-count Indictment charging them with violations of the Federal Gun Control Act.
According to court records, on or about October 15, 2014, ROBERTO HERRERA-VILLAGOMEZ and JUAN MANUEL HERRERA-VILLAGOMEZ, both illegal aliens, were found in possession of firearms. Agents executed a search warrant into the harboring of illegal aliens at a mushroom farm in Tangipahoa Parish and found the defendants in possession of firearms.
ROBERTO HERRERA-VILLAGOMEZ and JUAN MANUEL HERRERA-VILLAGOMEZ each face a maximum term of imprisonment of ten years, followed by up to three years of supervised release, and a fine of $250,000. U.S. District Judge Jane Triche Milazzo set sentencing for July 30, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security, Homeland Security Investigations (HSI) in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Herrera-Villagomez, Roberto & Juan Manual Factual Basis
Jury Convicts Hammond Resident for Gun and Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that on Tuesday, April 28, 2015, a jury convicted MELVIN JACKSON, age 34, of Hammond, of violations of federal drug and firearms laws.
After a two-day trial, the jury returned a guilty verdict on all three counts charged in the Indictment: conspiracy to distribute and possess with intent to distribute over one kilogram of heroin; felon in possession of a firearm; and possession with intent to distribute a quantity of heroin.
JACKSON faces a minimum sentence of ten years’ incarceration, and a maximum of life imprisonment. U.S. District Judge Stanwood R. Duval, Jr. set sentencing for August 12, 2015.
U.S. Attorney Polite commended the work of the Drug Enforcement Administration and the Tangipahoa Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys Maurice Landrieu and Brandon Long were responsible for the prosecution.
Honduran National Pleads Guilty to Immigration OffenseRead the Press Release
United States Attorney Kenneth A. Polite announced that JOSE MARTINEZ-ROMERO, age 32, a native of Honduras, pled guilty yesterday to a one-count Indictment for illegal entry of a removed alien.
According to court documents, MARTINEZ was previously removed from the United States on April 16, 2007. MARTINEZ was later found in the Eastern District of Louisiana on March 2, 2015 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
MARTINEZ faces a maximum term of imprisonment of two years, as well as a fine of $250,000. United States District Court Judge Carl J. Barbier set sentencing for June 11, 2015.
U.S. Attorney Polite praised the work of Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Jose Martinez-Romero Factual Basis (630.46 KB)
Grand Isle Man Sentenced to 41 Months in Prison for Submitting a Fraudulent GCCF ClaimRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RONNIE P. VEDROS, 52, of Grand Isle, was sentenced today after previously pleading guilty to one count of mail fraud.
U.S. District Judge Lance M. Africk sentenced VEDROS to 41 months imprisonment, to be followed by three years of supervised release. In addition to the term of imprisonment, VEDROS was ordered to pay $30,173.56 in restitution.
According to court documents, VEDROS’s charges stem from an application he submitted to the Gulf Coast Claims Facility (GCCF) in the aftermath of the explosion and oil spill at the Deepwater Horizon oil rig. VEDROS claimed to have lost earnings as a commercial fisherman and engineer as a result of the oil spill and provided documentation to prove his loss. In reality, as set forth in the factual basis, VEDROS was neither a commercial fisherman nor employed as an engineer at the time of the disaster and the documentation submitted had been falsified. As a result of VEDROS’s false application, he received approximately $30,173.56 in funds from the GCCF in which he was not entitled.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected]
U.S. Attorney Polite praised the work of the U.S. Secret Service in investigating this case. Assistant U.S. Attorney Tracey Knight was in charge of the prosecution.
Two Orleans Residents Guilty to Charges Related to Filing Fraudulent Claims for Oil Spill CompensationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LATASHA N. ANDERS, age 34, and ARNOLD WILLIAMS, age 33, residents of New Orleans, each pled guilty today to one count of conspiracy to commit wire fraud relating to fraudulent applications they made or caused to be made to the Gulf Coast Claims Facility (GCCF) for financial assistance during the aftermath of the Deepwater Horizon oil spill.
According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. ANDERS worked as a claims adjuster for the GCCF. Beginning in or about October 2010, ANDERS submitted or caused to be submitted, via the internet, claim forms on behalf of her co-conspirators containing false representations and fraudulent documentation that they were employed in the commercial fishing industry at the time of the oil spill, when in fact they were not. ANDERS shared in the claim proceeds in exchange for her assistance. Based upon the fraudulent documentation, ANDERS obtained $250,000 in claim proceeds to which she and her co-conspirators were not entitled.
Additionally, ANDERS conspired with WILLIAMS to file a false claim for loss earnings on his behalf, when in fact he did not work in the commercial fishing industry. Based upon the fraudulent claim, WILLIAMS received $50,000 to which he was not entitled. Both ANDERS and WILLIAMS admitted to purchasing a home for $110,000 with the illegal proceeds they received from the fraudulent claims.
ANDERS faces a maximum term of imprisonment of five years, a $250,000 fine, three years of supervised release following imprisonment, and restitution in the amount of $250,000. WILLIAMS faces a maximum term of imprisonment of five years, a $50,000 fine, three years of supervised release following imprisonment, and restitution in the amount of $50,000. U.S. District Judge Martin L.C. Feldman set sentencing for September 2, 2015.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant U. S. Attorney Julia K. Evans is in charge of the prosecution.
Slidell Man Pleads Guilty to Defrauding Gulf Coast Claims FacilityRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RONALD BACKES, age 48, of Slidell, pled guilty today to wire fraud relating to an application for financial assistance in the aftermath of the Deepwater Horizon oil spill.
The Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals affected by the oil spill resulting from the Deepwater Horizon explosion in the Gulf of Mexico. The GCCF required individuals to verify loss of income. According to court documents, in August and September 2010 BACKES falsely represented to the GCCF that he earned $156,000 annually from a shrimping business and that another individual earned $36,000 annually as BACKES’s employee. To support these claims, BACKES created and submitted to the GCCF false receipts of shrimp sales. As a result of BACKES’s conduct, GCCF issued checks totaling $192,000.
BACKES faces a maximum term of imprisonment of twenty years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Ivan L.R. Lemelle set sentencing for August 19, 2015.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Chandra Menon is in charge of this prosecution.
Ronald Backes Factual Basis
Metairie Man Sentenced for Making False Statements on Tax ReturnRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TIMOTHY DUCKWORTH, age 44, of Metairie, was sentenced today after previously pleading guilty to making false statements on income tax returns.
U.S. District Judge Ivan L.R. Lemelle sentenced DUCKWORTH to 5 years probation with the special condition of the first 18 months served as home confinement. DUCKWORTH was also ordered to pay $213,579 in restitution.
According to court documents, DUCKWORTH made false statements on his tax return for the year 2007 under-reporting his income in the amount of approximately $610,495.00, which resulted in DUCKWORTH having taxes due and owing in the amount of approximately $213,579.
U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Metairie Man Charged with Recording Movies in a Local Theater and Criminal Infringement of a CopyrightRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DERRICK HOLLOWAY, age 31, of Marrero, was charged in a two-count Bill of Information with unauthorized recording of a motion picture and criminal infringement of a copyright.
According to the Bill of Information, on September 13, 2014, HOLLOWAY used a digital camcorder to record the motion picture When the Game Stands Tall at the AMC Westbank Palace, located in Harvey. The Bill of Information also charges that until December 23, 2014, HOLLOWAY knowingly and willfully, for the purpose of commercial advantage and private financial gain, infringed the copyright of copyrighted works by distributing ten or more copies of the works during a 180-day period, which had a total retail value in excess of $2,500.
If convicted, HOLLOWAY faces a maximum term three years imprisonment as to Count 1 and five years as to Count 2, followed by up to three years of supervised release, and a $250,000 fine.
United States Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement, Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Derrick Holloway Bill of Information
Contract Postal Worker Sentenced for Theft of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAVID HENRY, age 31, of Covington, was sentenced today for theft of mail.
According to court records, as a result of multiple complaints of missing mail from highway contract route No. 76 (“Route 76”) in Mandeville, the Office of Inspector General for the United States Postal Service (“Postal OIG”) initiated an investigation into Route 76 in an effort to determine the cause of the lost mail. On April 23, 2014, HENRY, admitted to taking three cards that he believed to have contained cash. HENRY also admitted to taking cash from the mail on three or four other occasions.
Today, U.S. District Court Judge Ivan L.R. Lemelle sentenced HENRY to three years probation and a $250.00 fine.
U.S. Attorney Polite praised the work of the U. S. Postal Inspection Service, Office of Inspector General in investigating this matter. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba was in charge of the prosecution.
Two Plead Guilty to Charges Related to Filing Fraudulent Claims for Oil Spill CompensationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CLARA AITCH, age 39, and WENDY ERVIN, age of 42, both of New Orleans, each pled guilty on Tuesday, April 28, 2015, to one count of conspiracy to commit wire fraud relating to the fraudulent applications they made or caused to be made to the Gulf Coast Claims Facility (GCCF) for financial assistance during the aftermath of the Deepwater Horizon oil spill.
On March 12, 2015, AITCH and ERVIN were indicted along with 18 other defendants in a 26-count indictment charging approximately $30,052,295 in Medicare fraud and the BP fraud.
According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. In November, 2010, AITCH and ERVIN conspired with LISA CRINEL to apply for disaster assistance funds, and represent that they were employees of LACE, a reception hall owned and operated by LISA CRINEL, when, in truth, AITCH and ERVIN were full time employees of ABIDE HOME CARE SERVICES, INC.
Based on their fraudulent applications, the co-defendants received a total of $35,800 in GCCF funds, monies neither were entitled to receive.
AITCH and ERVIN both face a maximum term of imprisonment of five (5) years, a $250,000 fine, and three (3) years of supervised release following imprisonment. U.S. District Judge Susie Morgan set sentencing for July 29, 2015.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the U. S. Department of Health and Human Services, Office of Inspector General in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman and Andre Lagarde are in charge of the prosecution.
Undocumented Alien from Honduras Charged with Illegal Reentry into the United States after Previously Being DeportedRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EULIO MARQUEZ- CHACON, age 40, from Honduras, was charged on April 23, 2015, in a one-count Indictment with illegal reentry into the United States after having been previously deported.
According to the Indictment, MARQUEZ-CHACON was encountered by Immigration& Customs Enforcement agents in the Eastern District of Louisiana on March 4, 2015, after records showed he had been previously deported from the United States to Honduras on June 12, 2003.
If convicted, MARQUEZ-CHACON faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Immigration & Customs Enforcement and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorney Rick Veters is in charge of the prosecution.
Eulio Marquez-Chacon Indictment
Guilty Verdict Returned Against Peter Hoffman, Michael Arata, and Susan Hoffman for Fraudulent Film Tax Credit SchemeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that this afternoon, a jury returned guilty verdicts against three defendants for their participation in a conspiracy to commit mail and wire fraud as part of a fraudulent tax credit scheme.
The jury found PETER M. HOFFMAN, age 65, of Los Angeles, guilty on Counts 1 through 21, which includes a variety of substantive mail and wire fraud offenses. In total, PETER HOFFMAN faces 405 years in prison. MICHAEL P. ARATA, age 49, of New Orleans, was convicted on Counts 1 through 7, 13, and 21 through 25, which includes four counts of making false statements. He faces a maximum of 185 years in prison. Lastly, the jury found SUSAN HOFFMAN, age 69, of New Orleans, guilty on Counts 1, 11, and 21, for which she faces a total of 45 years in prison.
U.S. Attorney Polite stated: “I appreciate the hard work of AUSAs Baehr, Kammer, and Menon, as well as our law enforcement partners from the FBI and the Louisiana Office of the Inspector General. We are pleased with the verdict, and we thank the jury and the court for their consideration of this case. This case is important because it sends the message that our state’s business, especially our growing film industry, will no longer fall prey to fraud and corruption. Just as important, today’s verdict underscores the fact that wherever we find criminal conduct, as we did in the case of the Hoffmans and Michael Arata, we will follow the facts and bring justice to those individuals, regardless of where they live, their wealth, or their last names.”
Louisiana State Inspector General Stephen Street commented: “I am pleased that the jury saw this for what it was: plain and simple thievery. These guilty verdicts should send the message loud and clear that we have zero tolerance for those who defraud Louisiana's tax credit programs, and will continue to make pursuing these criminal cases a top priority. I want to thank our partners at the FBI and United States Attorney’s Office for their outstanding work on this case, and in particular the Assistant United States Attorneys for a fine job with the prosecution.”
Louisiana Doctor Pleads Guilty to Health Care Fraud Charges for Writing False Home Health Certifications in $56 Million Fraud SchemeRead the Press Release
WASHINGTON – A Louisiana doctor pleaded guilty to federal health care fraud charges today, admitting that he wrote false home health care certifications that were used in a multi-million dollar Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Michael Anderson of the FBI’s New Orleans Field Office, Special Agent in Charge Mike Fields of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Regional Office and Louisiana Attorney General James D. “Buddy” Caldwell made the announcement.
Winston Murray, M.D., 62, of Hammond, Louisiana, pleaded guilty before Chief U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana to all three charges against him, including one count of conspiracy to commit health care fraud and two counts of health care fraud. He is scheduled to be sentenced on August 12, 2015. Murray is the ninth defendant to plead guilty in this case. The trial for the remaining four defendants is scheduled to begin on May 6, 2015.
At his plea hearing, Murray admitted that he operated a clinic in Hammond, Louisiana, from which he wrote home health care referrals for Medicare beneficiaries he knew were not confined to their homes. Murray further admitted that his referrals were used by home health companies Interlink Health Care Services Inc. (Interlink) and Lakeland Health Care Services Inc. (Lakeland), among others, to fraudulently bill Medicare for home health services supposedly rendered to hundreds of Medicare beneficiaries living in and around Hammond and New Orleans.
Medicare records reveal that Murray’s certifications were used by Interlink and Lakeland to bill Medicare for more than $2.2 million in home health services that were not medically needed or were not provided. From 2007 through 2014, these companies and other companies involved in this scheme submitted more than $56 million in claims to Medicare, a vast majority of which were fraudulent. Medicare paid approximately $50.7 million on these claims.
This case was investigated by the FBI, HHS-OIG and the Louisiana Attorney General’s Medicaid Fraud Control Unit, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. This case was prosecuted by Trial Attorneys William Kanellis and Antonio Pozos and Assistant Chief Ben Curtis of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.justice.gov/criminal-fraud/health-care-fraud-unit.
Former District Attorney Walter P. Reed and His Son, Steven P. Reed, Charged by Federal Grand Jury in Eighteen Count IndictmentRead the Press Release
U.S. Attorney Kenneth A. Polite announced that former District Attorney for the 22nd Judicial District, WALTER P. REED, age 68, and STEVEN P. REED, age 43, both from Covington, were charged with offenses related to their involvement in a conspiracy to commit wire fraud and money laundering related to the misuse of funds from WALTER P. REED’S campaign account. Additionally, WALTER P. REED was charged with wire fraud for his personal misuse of campaign funds, mail fraud based on his diverting into his personal accounts funds from St. Tammany Parish Hospital that were intended for the Office of the District Attorney for the 22nd Judicial District, and filing false tax returns.
According to the Indictment, WALTER P. REED and STEVEN P. REED devised a scheme to defraud the Walter Reed Campaign and contributors to the Walter Reed Campaign by using donations to WALTER P. REED’S campaign to pay for goods and services either unrelated to the campaign or in an amount that grossly exceeded the value of the services provided.
The Indictment alleges that WALTER P. REED caused a series of payments to be made from the Campaign Fund to STEVEN P. REED’s companies in order to pay down a loan on which WALTER P. REED was a cosigner for services that either were not provided or whose value was substantially less than the amount paid. For example, WALTER P. REED caused, STEVEN P. REED’S company, Globop, to be paid approximately $8,352.64 for producing a housewarming party at WALTER P. REED’S new condominium in April 2012 that was unrelated to WALTER P. REED’S campaign. Similarly, STEVEN P. REED’s company, Liquid Bread LLC, received $29,400 from the Campaign Fund account for purportedly providing catering or bar services at a campaign event at the Castine Center in September 2012 that STEVEN P. REED did not actually provide. WALTER P. REED also required two companies that provided services at the September 2012 event to kickback a portion of their payments to STEVEN P. REED as a means to funnel campaign monies to him.
WALTER P. REED also paid for numerous other personal expenses unrelated to his campaign out of his Campaign Fund, including flowers with an accompanying message that stated, “[T]o my rodeo girl from a secret admirer from Camp J,” $1,885.36 for a Thanksgiving Day dinner for REED and approximately ten other members of his family and a $500 gift card for his future personal use, and $2,635.00 to a North shore steakhouse for a dinner he hosted for “Pentecostal Preachers” for the purpose of recruiting clients to refer him private civil legal work. Subsequently, REED also sought, and received, a reimbursement for the $2,635.00 dinner from the law firm with which he was affiliated, which he did not then put back into his Campaign Fund. In total, WALTER P. REED, spent at least $100,000 from the Walter Reed Campaign Fund bank account on personal expenses in this manner, including to recruit potential clients for his private legal practice, to pay off various expenses incurred by his son, STEVEN P. REED, and to pay for private and personal dinners.
The Indictment also alleges that WALTER P. REED diverted money paid by St. Tammany Parish Hospital for work performed by the Office of the District Attorney to his personal bank account. Specifically, between about 1994 and 2014, St. Tammany Parish Hospital retained the services of the Office of the District Attorney to advise it on various matters, for which it agreed to pay between $25,000 and $30,000 per year. REED attended some of the monthly meetings, though on dozens of occasions he directed Assistant District Attorneys to attend. Notwithstanding REED’s use of resources and personnel of his office, REED deposited into his own personal bank account each check provided by St. Tammany Parish Hospital that were intended for the Office of the District Attorney.
If convicted, WALTER P. REED faces up to 277 years in prison, followed by up to a three (3) year term of supervised release, and up to a $ 4,500,000 fine. STEVEN P. REED faces up to 65 years in prison, followed by up to a three (3) year term of supervised release, and up to a $1,000,000 fine.
United States Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation for investigating this matter and thanked the Metropolitan Crime Commission for their assistance. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg and First Assistant United States Attorney Richard Westling.
Download Indictment
“Mr. Move” Owner Sentenced on Eight Counts of Operating an Illegal Interstate Moving BusinessRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DUNWOODIE MCDUFFIE, age 48, a resident of Metairie and the owner of a Metairie moving company, was sentenced today on eight counts of conducting interstate household goods moves without the proper Department of Transportation authorities.
According to court records, MCDUFFIE pled guilty on November 5, 2014, to an eight-count Bill of Information. In 2007, MCDUFFIE applied for authorization to conduct interstate moves with his company Mr. Move, but never followed through with the various requirements to maintain authority to conduct interstate moves. MCDUFFIE nonetheless continued to operate his interstate moving business, knowing that he lacked the proper authority to do so. Each of the eight charges represents a different move conducted by MCDUFFIE’s business in 2013.
U.S. District Judge Martin L.C. Feldman sentenced MCDUFFIE to 6 months imprisonment, to be followed by 1 year of supervised release.
U.S. Attorney Polite praised the work of the Department of Transportation, Office of the Inspector General in investigating this matter. Assistant United States Attorney David Haller was in charge of the prosecution.
Two Honduran Citizens Plea to Drug and Immigration ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARVIN SANTOS PERDOMO, age 33, and OLVIN SANTOS PERDOMO, age 26, citizens of Honduras who reside in New Orleans, pled guilty today to a five-count Indictment charging them with conspiracy to possess with intent to distribute cocaine and, in the case of MARVIN SANTOS PERDOMO, reentry of an illegal alien.
According to the court records, MARVIN SANTOS PERDOMO and OLVIN SANTOS PERDOMO conspired to distribute and distributed cocaine hydrochloride, a Schedule II controlled drug substance. Additionally, MARVIN SANTOS PERDOMO was illegally in the United States after being previously departed.
U.S. District Judge Stanwood R. Duval, Jr. set sentencing on July 29, 2015. MARVIN SANTOS PERDOMO and OLVIN SANTOS PERDOMO face a maximum term imprisonment of twenty years and/or a fine of $1,000,000.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.