Eastern District of Louisiana
Press releases recorded for this federal judicial district.
Mississippi Woman, Kim Parish, Pleads Guilty to Defrauding Local BusinessRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KIM PARISH, age 50, a resident of Picayune, Mississippi, pled guilty today to bank fraud and wire fraud.
According to court documents, PARISH worked as an accountant for a New Orleans information technology services business. For approximately four years, PARISH defrauded the business through two schemes. The first scheme involved PARISH issuing more than 200 checks to herself and to “petty cash” by forging the signature of the business’s owner. The second scheme involved PARISH improperly crediting herself with bonus pay through the business’s payroll system. PARISH took a variety of steps to conceal the schemes and defrauded the business of approximately $540,201.
PARISH faces up to 30 years imprisonment and up to a $1,000,000 fine for her bank fraud conviction and up to 20 years imprisonment and up to a $250,000 fine for her wire fraud conviction. Sentencing is scheduled on January 21, 2015 before U.S. District Judge Sarah S. Vance.
U.S. Attorney Polite praised the work of the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, and the U.S. Marshals Service for investigating this matter. Assistant United States Attorney Chandra Menon is in charge of prosecution.
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Metairie Man, Timothy Duckworth, Charged with Making False Statements on Tax ReturnRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TIMOTHY DUCKWORTH, age 44, of Metairie, Louisiana, was charged today in a one-count Bill of Information with making false statements on income tax returns.
According to the Bill of Information, DUCKWORTH made false statements on his tax return for the year 2007 by under-reporting his income in the amount of approximately $610,495, which resulted in DUCKWORTH having taxes due and owing in the amount of approximately $213,579.
If convicted, DUCKWORTH faces a maximum term of imprisonment of three years incarceration, one year of supervised release after any term of imprisonment, and a $100,000 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 Internal Revenue Service – Criminal Investigations. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
(Download Bill of Information )
Larose Man, Justin Doucet, Sentenced to 5 Years for <br /> Receipt of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUSTIN DOUCET, age 21, a resident of Larose, Louisiana, was sentenced today for receipt of child pornography.
U.S. District Judge Helen G. Berrigan sentenced DOUCET to 5 years imprisonment, followed by 5 years of supervised release, and restitution of $8,000 to the victims. In addition, DOUCET will have to register as a sex offender.
According to court documents, on February 8, 2012, Special Agents of the Federal Bureau of Investigation obtained and executed a search warrant for evidence of child pornography at the defendant’s residence. During the search, Special Agents seized several pieces of computer equipment that were later determined to contain child pornography.
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 Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney G. Dall Kammer is in charge of the prosecution.
Bogalusa Man and Woman Sentenced for Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RAYMOND BRIDGES, age 53, and MARY DOUGHTY, age 65, both residents of Bogalusa, were sentenced yesterday having previously pled guilty to conspiracy to distribute and conspiracy to possess with intent to distribute cocaine hydrochloride and cocaine base and misprision of a felony, respectively.
U.S. District Judge Jay C. Zainey sentenced BRIDGES to a 24-month term of imprisonment and 4 years of supervised release, while DOUGHTY was sentenced to a 24-month term of probation.
On February 6, 2014, BRIDGES and DOUGHTY were two of 15 defendants charged in an 8-count indictment. This investigation targeted a Drug Trafficking Organization that operated out of the Bogalusa area. The indictment was based on court-authorized wiretaps that recorded conversations between Steven Haynes, who has pleaded guilty in this case, and the defendants, concerning the distribution of powder cocaine that was later converted to crack and sold in Washington and Tangipahoa Parishes.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
New Orleans Woman, Kwanza Wells, Pleads Guilty to Conspiracy to Commit Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KWANZA WELLS, age 34, a resident of New Orleans, pled guilty today to a one-count bill of information for conspiracy to commit wire fraud.
According to the bill of information, beginning in or about October 2010 and continuing until in or about November 2010, WELLS willfully conspired to device a scheme to obtain money by means of fraudulent representations and to defraud the Gulf Coast Claims Facility (GCCF), which was established by BP Exploration and Production, Inc. (BP) concerning the April 10, 2010 explosion on the Deepwater Horizon; and as a result of WELLS false and fraudulent representations and documentation, the GCCF paid her approximately $19,500, in violation of Title 18, United States Code, Section 371.
WELLS faces a maximum term of imprisonment of five years and a fine of up to $250,000, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Jay C. Zainey set sentencing for January 13, 2015.
U.S. Attorney Polite praised the work of the Secret Service and FBI in investigating this matter. Assistant United States Attorney Irene Gonzàlez is in charge of the prosecution.
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Local Dentist, Dr. Glenn V. Schmidt, Sentenced for Failing to Pay TaxesRead the Press Release
The United States Attorney’s Office announced that DR. GLENN V. SCHMIDT, age 65, a resident of New Orleans, Louisiana, was sentenced today after he previously entered a guilty plea to a bill of information on July 8, 2014. According to court documents, SCHMIDT admitted that he had failed to pay the appropriate amount of taxes for the second quarter of the 2009 tax year in the amount of $24,252.52. SCHMIDT entered a guilty plea as part of the Internal Revenue Service’s Expedited Plea Program. Under this program, defendants are allowed to plea to the major count of the charging document but must make full restitution to the government.
U.S. District Judge Jay C. Zainey sentenced SCHMIDT to 5 years of probation, restitution of $306,724.78 to the government, and 300 hours of community service for failing to pay withholding and FICA taxes to the Internal Revenue Service. The community service will consist of free dental care to the homeless, veterans and young runaways through various community organizations to be coordinated with U.S. Probation.
The U.S. Attorney’s Office praised the work of the Internal Revenue Service-Criminal Investigation Division in investigating this matter. Assistant United States Attorney Edward J. Rivera is in charge of the prosecution.
St. Tammany Woman, Ramona Hudson, Pleads Guilty to Charges Related to Filing Fraudulent Claims for Oil Spill CompensationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RAMONA HUDSON, age 51, a resident of Slidell, Louisiana, pled guilty yesterday to one count of conspiracy to commit wire fraud relating to a fraudulent application she 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. On October 1, 2010, HUDSON applied for disaster assistance funds, representing that she was employed in a commercial fishing business before the oil spill. However, HUDSON had never worked in the commercial fishing business, and she submitted or caused to be submitted false documentation to establish her false earnings. Based on HUDSON’S fraudulent application, HUDSON received approximately $75,000 to which she was not entitled.
HUDSON faces a maximum term of imprisonment of five years, a $250,000 fine, and three years of supervised release following imprisonment. U.S. District Judge Lance M. Africk set sentencing for January 8, 2015.
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 United States Attorney Julia K. Evans is in charge of the prosecution.
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River Ridge Man and His Company Charged in Superseding Indictment with Conspiring to Manufacture and Sell Counterfeit Mercedes-benz Diagnostic Equipment Worth over $15,000,000Read the Press Release
U.S. Attorney Kenneth A. Polite announced that RAINER WITTICH, age 65, of River Ridge, Louisiana, and the company he owns, THE BRINSON COMPANY, of Harahan, Louisiana, were charged yesterday in a nine-count superseding indictment by a federal grand jury for their role in creating and selling fake Mercedes-Benz diagnostic equipment containing proprietary software without authorization.
According to the Indictment, WITTICH owned THE BRINSON COMPANY, which sold replacement parts and diagnostic equipment for Mercedes-Benz vehicles. Beginning in about 2001, WITTICH and THE BRINSON COMPANY began developing, manufacturing, and selling fake versions of the Mercedes-Benz Star Diagnostic System (SDS), a hand-held computer containing proprietary, confidential software, with the assistance of a Durham, North Carolina-based company. They did so by obtaining Mercedes-Benz software without authorization, applying “cracks and fixes” to make the software work on everyday laptop computers, and making hundreds of copies of the software product. WITTICH and others then worked to override Mercedes-Benz security systems by purchasing false license keys from a United Kingdom-based individual that, combined with other modifications, would “unlock” the SDS software and make it operable on the counterfeit devices. When Mercedes-Benz notified the United Kingdom-based individual that his conduct was in violation of the law, WITTICH and others discussed plans to have him “go underground and off the radar” and continue to provide assistance and support in the production of fake SDS.
Beginning in about 2005, WITTICH entered into a conspiracy with a California-based company to manufacture and sell the SDS. On some occasions, when one of the fake SDS units sold by the North Carolina or California companies would break, WITTICH and BRINSON would repair them and return them to the customers.
Genuine SDS diagnostic devices are used by mechanics to identify problems with and assure the safety of motor vehicles employing electronic control systems; the fraudulent or unauthorized sale of such units increases the risk of Mercedes-Benz automobiles being stolen or suffering from misdiagnosed or undiagnosed problems. Genuine SDS sold for up to $22,000 each, while WITTICH’S fake SDS sold for between $5,000 and $11,000. In total, WITTICH and BRINSON sold not fewer than 700 counterfeit SDS, and the California-based company sold at least 95 devices.
The superseding indictment added five new counts, including conspiracy to commit copyright infringement and traffic in counterfeit labels and conspiracy to commit international money laundering.
The trial is currently scheduled to begin on November 3, 2014. If convicted, WITTICH faces a maximum term of imprisonment of 60 years, followed by up to 3 years of supervised release, and fine of up to $250,000. BRINSON faces up to a $500,000 fine.
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 Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg and United States Department of Justice Computer Crime & Intellectual Property Section Senior Counsel Evan Williams are in charge of the prosecution.
(Download Indictment )
Nicaraguan Man, Norwin Castellon-lopez, Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NORWIN CASTELLON-LOPEZ, age 32, a citizen of Nicaragua who recently resided in New Orleans, pled guilty yesterday to a one-count indictment for illegal reentry of removed alien.
According to the indictment, on or about July 29, 2014, CASTELLON-LOPEZ was found in the United States after having been officially deported and removed on or about December 22, 2010.
CASTELLON-LOPEZ faces a maximum term of imprisonment of two years and a fine of $250,000, or the greater of twice the gross gain to the defendant, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for December 11, 2014.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
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New Jersey Man, Stanley Zdon, Iii, Sentenced to 18 Years for Conspiracy to Produce Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STANLEY ZDON, III, age 28, a resident of Tuckerton, New Jersey, was sentenced today for conspiracy to produce child pornography
U.S. District Judge Susie Morgan sentenced ZDON to 18.25 years imprisonment, supervised release for life, and ZDON will have to register as a sex offender.
According to court documents, in November 2013, ZDON was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) after they determined that ZDON 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. ZDON has been in custody since his arrest.
U.S. Attorney Polite stated, “Stanley Zdon is the latest defendant brought to justice as a result of Operation Roundtable. The U.S. Attorney’s Office and Homeland Security Investigations will remain vigilant in identifying all those involved in the creation and circulation of these hideous images depicting the sexual exploitation of children.”
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 Homeland Security Investigations in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant United States Attorney Brian M. Klebba is in charge of the prosecution.
Honduran Man, Jose Hernandez-hernandez, Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE HERNANDEZ-HERNANDEZ, age 35, a citizen of Honduras, was charged today in a one-count indictment with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326(a).
According to the indictment, HERNANDEZ-HERNANDEZ reentered the United States after having been previously removed on July 26, 2013.
If convicted, HERNANDEZ-HERNANDEZ 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 Department of Homeland Security, Immigration and Customs Enforcement and Removal Operations in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
(Download Indictment )
Honduran Man, Alfredo Varela-hernandez, Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALFREDO VARELA-HERNANDEZ, age 35, a citizen of Honduras who recently resided in Kenner, Louisiana, was charged yesterday in a one-count bill of information with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326(a).
According to the bill of information, VARELA-HERNANDEZ reentered the United States after having been previously removed on two occasions.
If convicted, VARELA-HERNANDEZ faces a maximum term of imprisonment of two years, a fine of up to $250,000, one year supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Polite reiterated that a 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 United States Department of Homeland Security, Immigration and Custom Enforcement and Removal Operations in investigating this matter. Assistant United States Attorney Irene Gonzàlez is in charge of the prosecution.
(Download Bill of Information )
Department of Justice Charges Six Defendants in Connection with Violent Sex Trafficking SchemeRead the Press Release
The Department of Justice announced today a second superseding indictment in a sex trafficking conspiracy charging six individuals for offenses related to their involvement in sex trafficking adult victims in New Orleans and elsewhere. Five defendants, Granville Robinson, aka “Bear” and “HB,” 25; Duane Phillips, aka “P-nut,” 28; Anthony Ellis, aka “Anthony Deshun Lloyd,” “Animal,” and “AD,” 25; Christopher Williams, aka “Gutter,” 29; and LaQuentin Brown, aka “Nino,” 32, all of Memphis, Tennessee, were charged with conspiring to commit sex trafficking by force, fraud, and coercion. A sixth defendant, Kanubhai Patel, aka “Mr. Kenny” and “Pop,” 73, of Kenner, Louisiana, was indicted for benefitting financially from participating in a sex trafficking venture.
According to the indictment, from January 2013, until Jan. 15, 2014, Robinson, Phillips, Ellis, Williams and Brown conspired to recruit, entice, harbor, transport, provide, obtain and maintain multiple adult women for prostitution, using force, threats of force, fraud and coercion to cause them to engage in commercial sex acts in New Orleans and elsewhere. In addition to being charged with sex trafficking conspiracy, defendants Robinson, Phillips and Williams are each charged with additional counts of sex trafficking by force, fraud and coercion and with transporting women in interstate commerce for the purpose of prostitution.
If convicted of sex trafficking conspiracy, defendants Robinson, Phillips, Ellis, Williams and Brown each face a statutory maximum sentence of life imprisonment, a $250,000 fine and a lifetime of supervised release. If convicted of transportation for prostitution, Robinson, Phillips and Williams each face a statutory maximum of ten years in prison, a $250,000 fine and 3 years supervised release.
If convicted of benefitting financially from participation in a sex trafficking venture, Patel faces a statutory maximum sentence of life imprisonment, a $250,000 fine and a lifetime of supervised release.
A seventh defendant who was previously charged in connection with the case, Zacchaeus Taylor, aka “Little Z,” “Little Zay,” and “Little 5,” 21, also of Memphis Tennessee, pleaded guilty on June 25, 2014, to sex trafficking, conspiring and transporting women across state lines for prostitution. He is currently awaiting sentencing.
An indictment is merely a charge and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated jointly by agents from the New Orleans Field Offices of the FBI and ICE Homeland Security Investigations as well as the FBI’s Memphis Field Office. This case is being prosecuted by Special Litigation Counsel John Cotton Richmond and Trial Attorney Christine M. Siscaretti of the Civil Right Division’s Human Trafficking Prosecution Unit, and Assistant United States Attorney Julia K. Evans of the Eastern District of Louisiana.
Andres Villalva-guadarrama Pleads Guilty in Federal Court for Illegally Use of A Social Security NumberRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANDRES VILLALVA-GUADARRAMA, age 53, a citizen of Mexico who recently resided in Gretna, Louisiana, pled guilty yesterday to a one-count indictment for illegal use of a Social Security Number.
According to the indictment, on or about January 22, 2014, VILLALVA-GUADARRAMA, for the purpose of obtaining employment and for other purposes, knowingly and with intent to deceive, did falsely represent on an US Citizenship and Immigration Services Employment Eligibility Verification Form that a Social Security Number not issued to him, was assigned to him; all in violation of Title 42, United States Code, Section 408(a)(7)(B).
VILLALVA-GUADARRAMA faces a maximum term of imprisonment of five years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory special assessment of $100.00. U.S. District Judge Eldon E. Fallon set sentencing on January 8, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Irene Gonzàlez is in charge of the prosecution.
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Ship Operator Sentenced for Violations of the Act to Prevent Pollution from Ships and Obstruction of JusticeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARINE MANAGERS LTD., a Liberian corporation headquartered in Piraeus, Greece, was sentenced today to a three-year term of probation. In addition, U.S. District Judge Carl J. Barbier ordered MARINE MANAGERS LTD. to pay an $800,000 fine and a $100,000 community service payment. MARINE MANAGERS, LTD. previously pled guilty to a two-count bill of information charging the company with violating Title 33, United States Code, Section 1908(a) for knowingly failing to maintain an oil record book while in port and within the internal waters of the United States, and Title 18, United States Code, Section 1519 for the submission of a knowingly false document to the U.S. Coast Guard.
According to court documents, MARINE MANAGERS LTD. was the operator of the Motor Vessel (“M/V”) Trident Navigator, a vessel that transported bulk cargo between various ports and places in the world, including the Port of New Orleans and other locations in the Eastern District of Louisiana. The Act to Prevent Pollution from Ships (“APPS”), makes it a crime to knowingly violate protocols established regarding discharges of waste and documentation of same. On or about December 28, 2013, while the M/V Trident Navigator was sailing, the Chief Engineer instructed the Second Engineer to construct a bypass system (often referred to as a “magic pipe”) that could be connected between the vessel’s bilge pump and overboard discharge valve. The purpose of the bypass was to discharge the contents of the ship’s bilge tank directly into the sea, circumventing the ship’s Oil Water Separator and Oil Content Monitor. On or about December 31, 2013, the Chief Engineer ordered the Second Engineer to hook up the “magic pipe” and to discharge several metric tons of oily bilge waste from the bilge tank directly into the sea. The “magic pipe” was removed after the discharge was completed and the discharge was not recorded in the vessel’s Oil Record Book as required. The Chief Engineer additionally confiscated a crew member’s cell phone, which contained a photograph of the installed “magic pipe,” and caused that photo to be deleted.
On or about January 18, 2014, U.S. Coast Guard personnel boarded the M/V Trident Navigator while it was anchored in the Mississippi River near New Orleans, Louisiana, and within the Eastern District of Louisiana. A tip from a crewmember led them to the discovery of the “magic pipe.” The Chief Engineer was uncooperative and further obstructed the Coast Guard investigation by instructing crewmembers to deny knowledge of the “magic pipe.”
The actions of the crewmembers on the vessel were contrary to defendant MARINE MANAGERS LTD.’s written policies and procedures. However, defendant MARINE MANAGERS LTD. accepts that it is vicariously liable for their actions.
U.S. Attorney Polite stated, “Today’s sentence ensures that Marine Managers will be held responsible for the criminal actions of its employees who illegally dumped waste into our region’s waterways.”
"The Coast Guard is committed to uncovering and investigating regulatory and criminal violations that threaten the health of our marine environment. The successful prosecution of this case is due to the outstanding cooperation between Coast Guard Sector New Orleans, the Coast Guard Investigative Service, and the Department of Justice," said Rear Admiral Kevin S. Cook, Eighth Coast Guard District Commander.
U.S. Attorney Polite praised the work of the United States Coast Guard Criminal Investigative Service in this matter. Assistant United States Attorney Gregory M. Kennedy and DOJ Environmental Crimes Section Attorney Kenneth Nelson are in charge of the prosecution.
New Orleans Man, Richard Garrett, Sentenced to Ten Years for Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RICHARD GARRETT, age 20, a resident of New Orleans, Louisiana, was sentenced today by U.S. District Judge Edson E. Fallon to a 120-month term of imprisonment and 5 years of supervised release following his guilty plea to Conspiracy to Distribute and Conspiracy to Possess with Intent to Distribute Cocaine Baser. On July 19, 2013, GARRETT was one of 12 defendants charged in a 30-count superseding indictment.
This investigation targeted a violent Drug Trafficking Organization that operated out of the Lincoln Manor area of Kenner. During the course of the investigation, two major sources of supply of “crack” cocaine for the Lincoln Manor are of Kenner, were identified and dismantled along with their distribution network. Most of the street level distributors for this Drug Trafficking Organization were identified as being affiliated with a local gang who called themselves the “Flippa Squad.”
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the High Intensity Drug Trafficking Area, Kenner Police Department, Homeland Security Investigation, Jefferson Parish Sheriff’s Office, Criminal Intelligence Center, Louisiana State Police, Alcohol, Tobacco, Firearms, and Explosives, U.S. Marshals, U.S. Border Patrol, and the St. John Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney J. Collin Sims is in charge of the prosecution.
Louisiana Army National Guard Soldiers Charged with Conspiracy to Commit Theft of Government Funds<br /> and Identity TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that today, a federal grand jury indicted PABLO E. PAZ, 45, a resident of New Orleans, Louisiana, and RAMON E. MADRID, 29, a resident of Kenner, Louisiana, for conspiracy to commit theft of government funds and identity theft.
According to court documents, PAZ was a recruiter for the Louisiana Army National Guard. In this capacity, he obtained personally identifiable information (PII), such as names, dates of birth and social security numbers, from potential soldiers that came to the recruiting station for the purpose of becoming a soldier. PAZ provided the PII of potential soldiers to MADRID without the knowledge or consent of the soldiers, to obtain Guard Recruiter Assistance Program (G-RAP) incentive payments to which they were not entitled. MADRID received approximately $30,000 in fraudulently obtained recruitment incentive payments, and provided a portion of the funds to PAZ.
If convicted, PAZ and MADRID face a maximum term of five years imprisonment, a fine of up to $250,000, and up to three years of supervised release.
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 United States Army Criminal Investigation Division Command and the Defense Criminal Investigative Service in investigating this matter. Public Integrity Unit Chief and Assistant United States Attorney Tracey N. Knight is in charge of the prosecution.
(Download Indictment )
Illegal Alien from Honduras, Dayron Otoniel Madrid-guillen, Pleads Guilty to Illegally Possessing A HandgunRead the Press Release
U.S. Attorney Kenneth Polite announced that DAYRON OTONIEL MADRID-GUILLEN, 28, a Honduran national illegally residing in the United States, pled guilty today to possession of a handgun by a person illegally present in the United States, in violation of 18 U.S.C. Section 922(g)(5)(A).
According to court documents, MADRID-GUILLEN was spotted by a New Orleans Police Officer riding a bicycle in an erratic manner. The officer continued to observe MADRID-GUILLEN as MADRID-GUILLEN got off the bicycle and walked away from the officer. The officer saw what appeared to be the outline of a handgun completely concealed in MADRID-GUILLEN’s rear pocket. The officer stopped MADRID-GUILLEN, patted him down, and found a fully loaded handgun and six small bags of marijuana in his possession. MADRID-GUILLEN was later questioned by agents from Homeland Security Investigations and admitted that is a Honduran national who had entered the United States illegally.
U.S. District Judge Carl J. Barbier set sentencing for January 8, 2015.
U.S. Attorney Polite praised the work of the Homeland Security Investigations and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Gregory M. Kennedy is in charge of the prosecution.
Former Financial Advisor, Jabari Ragas, Sentenced to 42 Months for Money Laundering and Tax FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JABARI RAGAS, age 40, a resident of New Orleans, Louisiana, was sentenced today for one count of money laundering and one count of tax fraud. RAGAS previously pled guilty to embezzling nearly $1,700,000 from clients, and failing to pay nearly $260,000 in tax due and owing to the Internal Revenue Service.
U.S. District Judge Eldon E. Fallon sentenced RAGAS to serve 42 months of incarceration, to be followed by 3 years of supervised release. RAGAS was also ordered to pay nearly $1,700,000 in restitution for the money laundering count, and $259,210 for the tax fraud count.
According to court documents, RAGAS was employed by Ameriprise Financial Services, Inc. (“Ameriprise”) as a registered broker and investment adviser from 2005 - 2009. RAGAS previously pled guilty to embezzling nearly $1,400,000 from clients, and failing to pay nearly $260,000 in tax due and owing to the Internal Revenue Service.
In early 2006, a client of RAGAS indicated to him that he wished to open a Simplified Employee Pension (“SEP”) account to allow him to contribute towards retirement. The client made contributions from 2006 – 2009. Without authorization, RAGAS began moving money from the Ameriprise SEP account, into an account controlled by RAGAS. The client later checked the account balance and inquired as to why the account balance was lower than it should have been and was told by RAGAS that the funds had been transferred to a different financial institution located in Texas. RAGAS was later asked by the client to supply him with written account statements showing the balance, account number, and institution name. RAGAS then supplied the client with a fraudulent account statement for an account that did not exist, along with a fraudulent balance. After using the interstate wire to embezzle funds from the client’s Ameriprise account, RAGAS then committed money laundering by further transferring $20,000 into a different account that he controlled. Additionally, on October 12, 2008, RAGAS signed and filed a 2007 U.S. Individual Income Tax Return (Form 1040) with the Internal Revenue Service. The tax return allegedly did not report approximately $288,000 in income.
U.S. Attorney Polite stated, “Ragas defrauded the government out of tax revenue and his clients out of nearly $1.7 million in investments. Today’s sentence ensures that he pays for his fraudulent conduct by serving a lengthy prison sentence and paying full restitution to make his victims whole.”
U.S. Attorney Polite praised the work of the Internal Revenue Service and the United States Secret Service in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Alabama Woman, Brittany Bauer, Pleads Guilty to Possession and Transportation of Stolen FirearmsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BRITTANY BAUER, age 23, of Huntsville, Alabama, pleaded 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 BAUER and co-defendants BRITTEN PARSONS and ALEX BRASINGTON with conspiracy, possession and transportation of stolen firearms in interstate commerce.
According to court documents, in January and February 2013, BAUER, PARSON and BRASINGTON, 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 BAUER, PARSONS and BRASINGTON sold to individuals in New Orleans.U.S. District Judge Jane Triche Milazzo set sentencing for January 8, 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.
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Seattle Man, Nicholas Saine, Sentenced for Possession of Child PornographyRead the Press Release
U.S. Attorney Kenneth Polite announced that NICHOLAS SAINE, age 27, a resident of Seattle, Washington, was sentenced today for possession of child pornography.
According to court documents, in November 2013, SAINE was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) and the United States Postal Inspection Service after they determined that SAINE possessed videos depicting the sexual exploitation of children on the Internet. SAINE had received the videos through websites operated by Johnathan Johnson, who was based in Abita Springs, Louisiana. On April 30, 2014, SAINE entered a plea of guilty to knowingly possessing several videos depicting the sexual exploitation of children.
U.S. District Judge Kurt Engelhardt sentenced SAINE to 37 months imprisonment, five years of supervised release, and ordered that SAINE will have to register as a sex offender.
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.
This case was investigated by Homeland Security Investigations and the U.S. Postal Inspection Service. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
Department of Justice Awards $1,875,00 to Nopd to Hire 15 Police OfficersRead the Press Release
U.S. Attorney Kenneth A. Polite and the U.S. Department of Justice, Office of Community Oriented Policing Services (“COPS”) today announced an award of $1,875,000 to the New Orleans Police Department. The award will assist in recruiting and hiring 15 law enforcement positions.
“This grant of $1,875,000 to the New Orleans Police Department underscores DOJ’s commitment to ensuring public safety in our local communities,” stated U.S. Attorney Polite. “This money is critical to reducing violent crime, not in select portions of the city, but in every New Orleans neighborhood. As U.S. Attorney, I will continue to fight for the necessary federal resources to support our region’s law enforcement efforts.”
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans. Nearly $124 million will be awarded nationally.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Seven Defendants Indicted and Three Other Defendants Plead Guilty for Their Roles in $56 Million Medicare Fraud SchemeRead the Press Release
A New Orleans grand jury today indicted seven defendants for their roles in a $56 million Medicare fraud scheme that operated in New Orleans and surrounding communities. Thirteen defendants have now been charged in this case, three of whom pleaded guilty to their conduct yesterday.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite Jr. of the Eastern District of Louisiana, Special Agent in Charge Michael Anderson of the FBI’s New Orleans Field Office and Special Agent in Charge Mike Fields of the Dallas Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.
Paige Okpalobi, 57, of Slidell, Louisiana; Joe Ann Murthil, 57, of New Orleans; Latausha Dannel, 34, of Laplace, Louisiana; Dr. Winston Murray, 62, of Hammond, Louisiana; Dr. Divini Luccioni, 53, of Kenner, Louisiana; Christopher White, 48, of Destrehan, Louisiana; and Beverly Breaux, 66, of New Orleans, were charged in connection with their roles in a home health care fraud scheme involving thousands of Medicare recipients. Mark Morad, 51, of Slidell; Dr. Barbara Smith, 65, of Metairie, Louisiana; and Dr. Roy Berkowitz, 68, of Slidell, had been previously charged for their participation in the scheme, and today’s indictment added new charges against them.
The second superseding indictment comes one day after Dr. Alvin Darby, 58, of Slidell; Demetrius Temple, 54, of New Orleans; and Nicole Oliver, 44, of Napoleonville, Louisiana, each pleaded guilty to conspiracy to commit health care fraud for their roles in the scheme. Sentencing for each is scheduled for Jan. 7, 2015 before U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana.
The indictment alleges that the defendants operated a number of companies in and around New Orleans that purported to offer home health services and durable medical equipment to Medicare beneficiaries. The companies, Interlink Health Care Services Inc., Memorial Home Health Inc., Lakeland Health Care Services Inc., Lexmark Health Care LLC, Med Rite Pharmacy Inc. and Medical Specialists of New Orleans, billed Medicare claiming that they provided home health services and durable medical equipment to Medicare beneficiaries, but the vast majority of these services and equipment were not medically necessary or not provided.
The indictment further alleges that Morad and Okpalobi owned and directed operations at these companies. Morad allegedly paid kickbacks to patient recruiters, including Temple and Oliver, to provide Medicare beneficiary numbers that were then used to bill Medicare. To conceal these kickbacks, Morad allegedly laundered Medicare money through a separate company he owned.
Court documents also allege that Okpalobi instructed doctors, including Smith, Berkowitz, Murray, Luccioni, and Darby, to falsely certify that beneficiaries were qualified for home health services, and to prescribe durable medical equipment that was not medically needed. These false certifications and prescriptions were then used to bill Medicare for the unnecessary services and equipment.
Murthil and Dannel were office managers who allegedly oversaw daily operations at the home health companies. White allegedly performed accounting services for these companies, and helped conceal the scheme by fabricating false tax and employee records. Breaux was a registered nurse who is alleged to have falsely certified that home health clients were homebound, and that she had provided home health care services when she had not.
From 2007 through 2014, the companies allegedly involved in the scheme submitted more than $56 million in claims to Medicare, the majority of which are allegedly fraudulent. Medicare paid approximately $50.7 million on those claims.
The charges contained in this indictment are merely accusations, and the defendants are innocent unless and until proven guilty.
The case is being investigated by HHS-OIG and the FBI 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. The case is being prosecuted by Trial Attorney William G. Kanellis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Patrice Harris Sullivan of the Eastern District of Louisiana.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and 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.
(Download Factual Basis - Alvin Darby )
(Download Factual Basis - Demetrius Temple )
(Download Factual Basis - Nicole Oliver )
(Download Superseding Indictment )
Two Honduran Nationals, Sentenced for Conspiracy, Aggravated Identity TheftRead the Press Release
United States Attorney Kenneth Polite and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division announced today that YONI PERDOMO, 35, was sentenced to 38 months in prison for conspiracy to defraud the United States by filing false income tax returns and for aggravated identity theft. In addition, SANTOS MARTIN HERNANDEZ, 41, was sentenced to 24 months in prison for his role in the conspiracy to defraud the United States. The defendants were further ordered to pay restitution and to serve terms of supervised release.
Both defendants have been detained since their arrest, and as Honduran nationals they face possible deportation following the completion of their sentences. They were charged with being part of a multi-jurisdictional conspiracy to file false income tax returns. To date, 16 defendants have entered guilty pleas to various charges in the case, including JACQUELINE J. ARIAS, a tax return preparer in Spruce Pine, Alabama, who is pending sentencing.
According to the indictments in this case, the conspirators filed false returns listing Individual Taxpayer Identification Numbers (ITINs). An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who do not have, and are not eligible to obtain, a social security number. As alleged in the indictments, ARIAS was a certified acceptance agent, entrusted by the IRS with the responsibility of reviewing the documentation of an ITIN applicant’s identity and alien status for authenticity, completeness and accuracy before submitting their application to the IRS. The indictments charged that ARIAS and her coconspirators filed false applications for ITINs, in addition to false income tax returns, and that ARIAS collected preparation fees from the fraudulently-obtained tax refunds. According to the second superseding indictment, the conspirators purchased identification documents from overseas and Forms W-2 from other aliens illegally present in the United States for use in filing false income tax returns with ARIAS.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; IRS-Criminal Investigation; the U.S. Secret Service; the U.S. Postal Inspection Service; and the Social Security Administration, Office of the Inspector General, in partnership with the St. Tammany Parish and Jefferson Parish Sheriffs’ Departments. The case was prosecuted by Trial Attorneys Hayden Brockett and Kevin Lombardi of the Justice Department’s Tax Division and Assistant U.S. Attorney David Haller.
Dallas-area Woman, Andrea Birdow, Pleads Guilty to Conspiracy to Traffick A Minor for the Purpose of ProstitutionRead the Press Release
U.S. Attorney Kenneth Polite announced that ANDREA BIRDOW, 22, of Sherman, Texas, pleaded guilty today to conspiring with her boyfriend, TAUREAN JACKSON, to trafficking of a minor from the Dallas, Texas-area into the New Orleans area for the purposes of that minor engaging in prostitution.
According to court documents, BIRDOW met JACKSON in 2012 after JACKSON recruited her to join “Star City Vixens,” an entity he created to foster and promote prostitution. JACKSON became BIRDOW’s pimp and arranged for her to engage in sexual acts with others in exchange for money. JACKSON was responsible for advertising and scheduling prostitution calls with BIRDOW. JACKSON kept all, or most, of the proceeds from the prostitution calls. As a means of controlling BIRDOW’s behavior and ensuring her compliance, JACKSON beat and choked BIRDOW on multiple occasions, often in front of others. On several occasions, JACKSON burned BIRDOW with lit cigarettes to discipline her.
In mid-June 2013, JACKSON and BIRDOW met the victim, who was then 16-years-old, in the Dallas, Texas-area and recruited her to work for JACKSON as a prostitute. Over the course of the next several weeks, JACKSON and BIRDOW drove the victim throughout Texas and Louisiana for the purpose of BIRDOW and the victim engaging in prostitution, which JACKSON advertised and arranged using an online classified advertisement. JACKSON arranged for the victim to watch BIRDOW engage in prostitution acts as a means of educating her on the best way to perform sexual acts. On July 10, 2013, BIRDOW and the victim were arrested in a Metairie hotel room by undercover law enforcement officers, who responded to an online classified advertisement offering a prostitution date.
BIRDOW faces a maximum sentence of five years imprisonment, followed by three years of supervised release, and a $250,000 fine. She may also be required to register as a sex offender. Sentencing is scheduled for January 14, 2015 before U.S. District Judge Susie Morgan.
JACKSON’s trial is scheduled to begin on November 3, 2014. JACKSON faces a mandatory minimum term of imprisonment of 15 years and a maximum of life, followed by up to a life term of supervised release, a $250,000 fine, and can also be required to register as a sex offender.
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.”
This case was initiated by the Jefferson Parish Sheriff's Office and is being investigated by agents from the Federal Bureau of Investigation, with assistance from the FBI Dallas Child Exploitation Task Force, and the Dallas Police Department High Risk Victims Unit. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
(Download Factual Basis )
Abita Springs Man, Frank Frabbiele, Pleads Guilty to Running Illegal Wagering Operation and Money LaunderingRead the Press Release
U.S. Attorney Kenneth Polite announced that FRANK FRABBIELE, 79, of Abita Springs, Louisiana pleaded guilty today to a two-count Bill of Information, charging him with the transmission of wagering information and money laundering.
According to court documents, beginning not later than January 2008 and continuing until April 9, 2014, FRABBIELE operated a gambling operation in which he took bets and wagers on football, basketball, and baseball games. In the course of conducting his gambling operation, FRABBIELE used a “pay-per-head” betting website based in Costa Rica to track, record, and register bets and clients, to which FRABBIELE paid a per-client fee. FRABBIELE’S relationship with the website caused information to be transmitted by wire from Abita Springs to Costa Rica for the purposes of assisting in placing bets on football, baseball, and basketball. On or about November 15, 2012, FRABBIELE also committed money laundering by depositing $20,000 cash, representing the proceeds of the gambling operation, into a bank account.
FRABBIELE faces a maximum term of imprisonment of 12 years in prison, 3 years of supervised release after any term of imprisonment, and a $250,000 fine. Sentencing is scheduled for January 14, 2015, before U.S. District Judge Helen G. Berrigan.
This case is being investigated by agents from the Internal Revenue Service-Criminal Investigation Division and the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
(Download Factual Basis )
Slidell Man, Casey Thonn, Charged with Defrauding the Deepwater Horizon Economic Claims CenterRead the Press Release
The United States Attorney’s Office announced today that CASEY THONN, 35, a resident of Slidell, Louisiana, was charged in a two-count Bill of Information with wire fraud in connection with claims he filed with the Deepwater Horizon Economic Claims Center (“DHECC”).
According to the Bill of Information, on June 24, 2012, THONN submitted multiple claims with the Seafood Compensation Program administered by the DHECC based on losses he allegedly sustained as result of the April 2010 oil spill. Subsequently, in early November 2012, the DHECC notified THONN that he was eligible to receive approximately $1,750.36 for these claims.
In turn, on December 3, 2012, THONN submitted Requests for Reconsideration of his original eligibility notices requesting his compensation be recalculated based on a false Federal tax return THONN provided to the DHECC. In that false submission, THONN claimed he received $156,000 of gross revenue from commercial shrimping sales in 2009. This fraudulent submission increased the defendant’s compensation from $1,750.36 to a total of $357,002.35 for these claims. In March 2013, THONN received a total of $357,002.35 from the DHECC based on his fraudulent submissions.
The case was investigated by the Federal Bureau of Investigation (“FBI”) and is being prosecuted by Assistant United States Attorney Matt Coman.
(Download Bill of Information )
Marrero Men Plead Guilty to Drug ConspiracyRead the Press Release
U.S. Attorney Kenneth Polite announced today that STOKLEY AUSTIN, age 33, and DONALD JONES, JR., age 33, both residents of Marrero, Louisiana, pleaded guilty before U.S. District Judge Ivan L.R. Lemelle to conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine hydrochloride and a quantity of cocaine base (“crack”) and firearms offenses. AUSTIN and JONES also entered guilty pleas to possessing firearms in furtherance of a drug trafficking crime. Additionally, AUSTIN pleaded guilty to being a felon in possession of a firearm.
According to court documents the conspiracy involved multiple kilogram quantities of powder cocaine being transported into the New Orleans metropolitan area and delivered to AUSTIN and JONES. At the time of AUSTIN’s arrest on July 23, 2013, agents discovered approximately 2485.7 gross grams of powder cocaine, approximately 39.7 gross grams of crack cocaine, approximately $45,870.00 cash, a loaded Smith and Wesson .22 caliber rifle, a loaded Ruger P-89 9mm semi-automatic pistol, in addition to drug distribution and packaging materials at his residence. On the same date, at the time of JONES’ arrest, agents discovered approximately 1907 gross grams of powder cocaine, approximately 63 gross grams of crack cocaine, approximately 269 gross grams of heroin, approximately $22,535.00 cash, and four guns: an AK-47 assault rifle, a Browning Arms 9mm pistol, a Smith & Wesson .22 caliber pistol, and Taurus 9mm pistol at his residence.
Due to a prior felony drug conviction, AUSTIN faces a mandatory minimum of 25 years in prison, a maximum of life imprisonment, a fine of up to $20 million, and at least 10 years of supervised release. JONES faces a mandatory minimum of 15 years in prison, a maximum of life imprisonment, a fine of up to $10 million, and at least 8 years of supervised release. Sentencing is scheduled on January 7, 2015.
The case was investigated by the Drug Enforcement Administration, the Jefferson Parish Sheriff’s Office, and the Westwego Police Department. The case was prosecuted by Assistant U. S. Attorneys Theodore R. Carter, III and Spiro Latsis.
Slidell Man, John Labee, Sentenced for Crimes Involving the Preparation of False Tax Documents and Lying to A Grand JuryRead the Press Release
U.S. Attorney Kenneth Polite announced that JOHN LABEE, 36, a resident of Slidell, Louisiana, was sentenced today by U.S. District Judge Carl J. Barbier to 46 months imprisonment, followed by three years of supervised release. In addition, LABEE was ordered to pay $412,781 in restitution. On December 12, 2013, LABEE plead guilty to aiding and assisting in the preparation of false tax documents, lying on personal income tax returns, and making false declarations before the Grand Jury.
According to court documents, LABEE owned and operated several tax preparation companies, including Millenium Bookkeeping Services (“Millenium” [sic]) and IP Financial Services (“IP”), which prepared the taxes of numerous clients. As a regular part of his business, LABEE prepared tax returns that contained false or fraudulent information for his clients, including false W-2s that fabricated the amount of federal income tax that had been withheld and inflated business expenses and deductions. LABEE’S conduct resulted in an intended loss to the United States of approximately $2,242,121 of federal income tax withholdings. Between 2007 and 2012, LABEE also under-reported his gross receipts from his tax business and over-reported the amount of federal income tax that he withheld from his income, resulting in a failure to pay approximately $163,457 in federal taxes personally.
Additionally, on March 13, 2013, LABEE appeared before a federal grand jury and, after being placed under oath, answered numerous questions. In particular, LABEE stated that in 2013, he had not prepared any tax returns other than his own. In fact, LABEE continued operating his tax return preparation business in 2013, including preparing and filing a tax return for “J.C.” LABEE’S preparation work with J.C. included numerous meetings and correspondence with “J.C.” between January 2013 and February 14, 2013, less than one month before he testified before the federal grand jury.
“The fraud perpetrated by John Labee and the related losses had far-reaching effects on the tax paying citizens of this community. IRS – Criminal Investigation is working very hard to expose the tactics of unscrupulous return preparers that make victims of their clients and the federal government,” stated Samuel Zechenelly, Acting Special Agent in Charge of IRS – Criminal Investigation. “I would also like to thank Mr. Polite and Assistant United States Attorney Jordan Ginsberg for their work toward the prosecution of this case.”
The case was investigated by agents with the Internal Revenue Service and was prosecuted by Assistant United States Attorney Jordan Ginsberg.
New Orleans Men Sentenced for Drug ConspiracyRead the Press Release
U.S. Attorney Kenneth Politc announced that JERRY SPENCER, JR., 29, MITCHELL LEE, 28, and TERRANCE TIMMONS, 33, all residents of New Orleans, were sentenced today for their roles in a conspiracy to distribute and possess with the intent to distribute a quantity of heroin and a quantity of cocaine base. U.S. District Judge Carl J. Barbier sentenced SPENCER, JR., LEE and TIMMONS to a term of imprisonment of 72 months, 78 months, and 60 months, respectively, followed by three years of supervised release for each. Another defendant, TROY ADAM, 50, also a resident of New Orleans, was sentenced to a three-year term of probation for his role in distributing a quantity of heroin. Defendant DEVIN TIMMONS is scheduled to be sentenced on October 2, 2014.
On May 15, 2014, SPENCER, LEE, TIMMONS, and ADAM pled guilty to various counts contained in the indictment which charged them with distribution and possession with intent to distribute heroin and cocaine base.
According to court documents, after more than a yearlong investigation and numerous controlled purchases of narcotics by various federal and state law enforcement agencies, agents of the Federal Bureau of Investigations (“FBI”) arrested SPENCER, JR., LEE, DEVIN TIMMONS, TERRANCE TIMMONS, and ADAM on charges of conspiring to violate the Federal Controlled Substances Act. The defendants’ drug trafficking activity occurred in an area of New Orleans referred to as the “horseshoe” or the “shoe” that includes McCoy Street, Across Street, and Darby Street, which are roadways situated in the shape of a horseshoe, off of Old Gentilly Road in eastern New Orleans.
This case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, and the New Orleans Police Department. It was prosecuted by Assistant United States Attorney Theodore Carter.
Amite Man, Torrie Brumfield, Sentenced to 16 Years in Prison on Federal Drug ChargesRead the Press Release
U.S. Attorney Kenneth Polite announced that TORRIE BRUMFIELD, a resident of Amite, Louisiana, was sentenced today by U.S. District Judge Carl J. Barbier to serve 16 years in prison for his role in a large-scale drug conspiracy.
On March 25, 2014, BRUMFIELD was convicted by a federal jury for conspiracy to possess and distribute, and distribution of more than 100 grams of crack cocaine.
In a separate trial in the same case, co-defendant MARCO DILLON was also found guilty of a conspiracy to possess and distribute more than 100 grams of crack cocaine. DILLON received a sentence of 97 months in prison. Co-defendants FLOYD HAMPTON, WILL DUNN and DAVID CHANEY plead guilty to their role in the conspiracy and testified at the trials of BRUMFIELD and DILLON. HAMPTON, DUNN and CHANEY were sentenced to 36 months, 12 months and a day, and 23 months, respectively.
U.S. Attorney Polite thanked the following investigating agencies for their efforts: Drug Enforcement Administration (“DEA”) New Orleans Field Office, Tangipahoa Sheriff’s Office, and the Hammond Police Department.
The case was prosecuted by Assistant United States Attorneys John F. Murphy and Michael E. McMahon.
Oil Company Charged with Felony Clean Water Act ViolationRead the Press Release
U.S. Attorney Kenneth Polite announced today that XPLOR ENERGY SPV-1, INC. (“XPLOR”), an Oklahoma corporation located in Southlake, Texas, was charged today in a one-count bill of information with knowingly violating the Clean Water Act, Title 33, United States Code, Section 1319(c)(2)(A), in connection with their oil and gas production activities in the Breton Sound Area of the Gulf of Mexico.
According to the bill of information, from on or about October 1, 2009, and continuing through November 18, 2011, in the navigable waters of the United States and within the Eastern District of Louisiana, XPLOR., by and through its agents and employees acting within the scope of their agency and employment and for the intended benefit of the defendant, did knowingly discharge and cause to be knowingly discharged a pollutant, namely, produced water containing oil, from a point source (injection lines and disposal wells attached to the MP 35 Platform) into a water of the United States without a permit.
The case was investigated by the Criminal Investigation Division of the United States Environmental Protection Agency (“EPA-CID”) and the Criminal Investigation Division of the Louisiana Department of Environmental Quality (“DEQ-CID”). The case is being prosecuted by Assistant United States Attorney Matthew Coman.
(Download Bill of Information )
Two Honduran Nationals Sentenced to Prison for Their Roles in Tax Refund Fraud ConspiracyRead the Press Release
United States Attorney Kenneth Allen Polite, Jr. and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division announced today that two men unlawfully residing in Louisiana were sentenced to prison for identity theft and tax fraud.
ARNULFO SANTOS-MEDRADO, 42, was sentenced to 38 months in prison for conspiracy to defraud the United States by filing false income tax returns and for aggravated identity theft. In addition, MILLER PERDOMO-ACEITUNO, 22, was sentenced to 24 months in prison for his role in the conspiracy to defraud the United States. Each defendant was further ordered to pay $400,000 in restitution and to serve one year of supervised release following their prison terms.
Both defendants have been detained since their arrest, and as Honduran nationals they face possible deportation following the completion of their sentences. They were charged with being part of a multi-jurisdictional conspiracy to file false income tax returns. To date, sixteen defendants have entered guilty pleas to various charges in the case, including JACQUELINE J. ARIAS, a tax return preparer in Spruce Pine, Alabama, who is scheduled to be sentenced on October 22, 2014.
According to the indictments in this case, the conspirators filed false returns listing Individual Taxpayer Identification Numbers (ITINs). An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who do not have, and are not eligible to obtain, a social security number. As alleged in the indictments, JACQUELINE J. ARIAS was a Certified Acceptance Agent, meaning that she was entrusted by the IRS with the responsibility of reviewing the documentation of an ITIN applicant’s identity and alien status for authenticity, completeness and accuracy before submitting their application to the IRS. The indictments charged that ARIAS and her coconspirators filed false applications for ITINs, in addition to false income tax returns, and that ARIAS collected preparation fees from the fraudulently-obtained tax refunds. According to the second superseding indictment, the conspirators purchased identification documents from overseas and Forms W-2 from other aliens illegally present in the United States for use in filing false income tax returns with ARIAS.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; IRS-Criminal Investigation; the U.S. Secret Service; the U.S. Postal Inspection Service; and the Social Security Administration, Office of the Inspector General, in partnership with the St. Tammany Parish, La. and Jefferson Parish, La. Sheriffs’ Departments. The case was prosecuted by Hayden Brockett and Kevin Lombardi of the Tax Division and Assistant U.S. Attorney David Haller.
Chamico President and Employees Plead Guilty to Conspiracy to Commit Mail FraudRead the Press Release
U.S. Attorney Kenneth Polite announced today that CHARLES E. “CHUCK” MIZELL, JR., age 44, a resident of Bogalusa, Louisiana; JAMES CREEL, age 48, a resident of Bogalusa, Louisiana; WILLIAM DARRYL KING, age 47, a resident of Angie, Louisiana; and TENILLE NIELSON, age 34, a resident of Franklinton, Louisiana, pleaded guilty before U.S. District Judge Helen G. Berrigan to one count of conspiracy to commit mail fraud for their participation in a scheme to defraud the Louisiana Workforce Commission of unemployment benefits. MIZELL also pleaded guilty to five counts of mail fraud.
In April 2014, MIZELL, CREEL, KING, and NIELSON were indicted, along with JACQUELINE MYERS, JERRY ATHEY, DAVID LOWE, TERRY CASTILOW, and ROGER NADEAU, for mail fraud and conspiracy to commit mail fraud. According to the indictment, beginning at a time unknown, but no later than on or about September 24, 2009, and continuing through on or about January 11, 2014, MIZELL, CASTILOW, KING, LOWE, CREEL, ATHEY, NIELSON, MYERS, and NADEAU conspired to defraud the Louisiana Workforce Commission (“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 actually employed them at Chamico, Inc., a Bogalusa construction company that concentrates on public, municipal, and industrial contracts.
MIZELL was the President of Chamico and, according to the factual bases, he asked those employees to fraudulently file for unemployment so that he would not have to pay their full salaries during tough economic times for Chamico. The employees would each get cash from Chamico during the weeks they were claiming unemployment benefits and reporting that they were not working and not getting any income from work.
MIZELL, KING, NIELSON, and CREEL each face not more than five years in prison, a $250,000 fine, and three years supervised release on the conspiracy conviction. MIZELL faces an additional sentence of not more than 20 years in prison, a $250,000 fine, and three years of supervised release on each of the five counts of mail fraud. Sentencing for all defendants is scheduled on December 17, 2014.
The trial of ROGER NADEAU, the only remaining defendant, is scheduled for September 15, 2014.
The case was investigated by the Department of Labor-OIG and the Federal Bureau of Investigation with assistance from the Louisiana Workforce Commission. The case is being prosecuted by Assistant United States Attorney Emily K. Greenfield.
(Download Factual Basis - Mizell )
(Download Factual Basis - Creel )
(Download Factual Basis - Nielson )
(Download Factual Basis - King )
Former Orleans Parish Sheriff's Office Vendor and Mississippi Businessman, Kendall O. Marquar, Sentenced for Failing to File TaxesRead the Press Release
U.S. Attorney Kenneth Polite announced today that KENDALL O. MARQUAR, 36, a resident of Waveland, Mississippi, was sentenced by U.S. Magistrate Judge Sally Shushan to 12 months of home detention with electronic monitoring after pleading guilty to the one-count Bill of Information charging him with willfully failing to file taxes. In additional to the term of home incarceration, MARQUAR was ordered to pay $156,941 in restitution to the Internal Revenue Service and a fine of $3,162.
According to court documents, from in or around 2000 through in or around 2012, MARQUAR, a Mississippi businessman, owned a company called K&D Earthworks that was a maintenance and construction vendor at the Orleans Parish Sheriff’s Office (“OPSO”). During the years 2007, 2008, and 2009, MARQUAR and K&D Earthworks earned approximately $580,379 in taxable income, mainly from work performed at the OPSO. As set forth in the factual basis, MARQUAR failed to file taxes during the years 2007 through 2009.
Special Agent in Charge Gabriel L. Grchan stated, "Kendall Marquar knew that failing to file his income tax returns was a violation of the law and would bring about severe consequences. Now he must accept the punishment for his actions and will be required to pay his fair share. IRS-CI also thanks the FBI and the U.S. Attorney’s Office for their partnership in the investigation and prosecution of this case."
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigative Division. The case was prosecuted by Assistant U. S. Attorney Matt Chester.
Bookkeeper, Patricia Blanchard, Charged with Mail Fraud for Embezzling over $700,000 from A Charitable OrganizationRead the Press Release
U.S. Attorney Kenneth Polite announced that PATRICIA BLANCHARD, age 67, formerly of New Orleans, Louisiana, was charged today in a one-count Bill of Information with mail fraud.
According to the Bill of Information, BLANCHARD’S husband was hired in 2000 to be the Executive Director and President of a not-for-profit charitable organization that raised, collected, and distributed funds to local charities through workplace giving campaigns (“Charity A”). In about 2005, he arranged for BLANCHARD to be hired as Charity A’s bookkeeper.
Between 2006 and November 2011, BLANCHARD embezzled approximately $715,000 from Charity A in three ways. First, she mailed checks drawn on Charity A’s accounts to pay her own credit card bills. To disguise her behavior and make the checks look legitimate, BLANCHARD added fictitious notes on the checks, such as “Cancer Research Institute,” “AIDS Research Foundation,” “MARCH OF DIMES,” “NO AIDS/TASK FORCE,” “American Heart Assoc.,” and “AMERICAN CANCER SOCIETY.” Second, BLANCHARD obtained cash advances on her gas card without authorization and reimbursed herself from Charity A’s accounts, making it look like the reimbursements were for legitimate travel and gas expenses. Third, BLANCHARD paid for personal expenditures and items directly from Charity A’s bank accounts without authorization.
If convicted, BLANCHARD faces a maximum term of imprisonment of 20 years in prison, 3 years of supervised release after any term of imprisonment, and a $250,000 fine.
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.
This case is being investigated by agents from the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
(Download Bill of Information )
Los Zetas, Efrain Grimaldo, Cartel Member Sentenced to over 33 Years in Prison on Federal Drug ChargesRead the Press Release
U.S. Attorney Kenneth Polite announced that EFRAIN GRIMALDO, a resident of Mexico, was sentenced today by U.S. District Chief Judge Sarah S. Vance to serve 405 months in prison for his role in a large-scale drug conspiracy.
On February 26, 2014, GRIMALDO was convicted by a federal jury for conspiracy to possess and distribute 5 kilograms or more of cocaine. GRIMALDO’s organization was responsible for distributing hundreds of kilograms of cocaine throughout the United States, to include Jackson, Mississippi; Pensacola, Florida; New York City, New York; Detroit, Michigan; Baltimore, Maryland, Dover, Delaware; and Houma, Louisiana. During sentencing Judge Vance found that GRIMALDO was a member of the Los Zetas Cartel. Further, she held that GRIMALDO was responsible for the importation of 1,640 kilograms of cocaine during the conspiracy. The investigation revealed that the conspirators supplied cocaine to the “Up Da Bayou Boyz” (UBB), a violent street gang that operated in Houma, Louisiana.
Co-defendant SERGIO GRIMALDO has recently been extradited from Mexico on these same charges and is scheduled for trial on December 15, 2014. Co-defendant SABINO DUARTE has pled guilty and is awaiting sentencing.
“Efrain Grimaldo was responsible for importing massive quantities of cocaine into the United States, including communities here in Southeast Louisiana,” stated U.S. Attorney Polite. “As a member of the Los Zetas cartel, one of the most notorious criminal enterprises in Mexico or the United States, Grimaldo endangered the lives of innocent people on both sides of the border. As a result of today’s sentencing, he will spend over 33 years in federal prison as punishment for his crimes.”
“The Los Zetas Drug Cartel, of which Efrain Grimaldo is a member, is responsible for death and suffering from the cities and towns of Mexico, across the U.S. border, and into our communities in Louisiana,” stated Raymond Keith Brown, Special Agent in Charge of the Drug Enforcement Administration. “DEA and the law enforcement community are committed to ending the destruction brought on by these international drug cartels. The sentence handed down to Efrain Grimaldo is another step forward in our efforts to stop the flow of drugs into our country and city, and to halting the spread of drug abuse and violence.”
Assisting the DEA New Orleans in this investigation include the DEA Houston, High Intensity Drug Trafficking Area Task Force (HIDTA); FBI New Orleans; FBI Houston, Terrebonne Parish Sheriff’s Office; the Houma Police Department; the Lafourche Parish Sheriff’s Office; and the Louisiana State Police Troop “C” Narcotics.
The case was prosecuted by Assistant United States Attorneys John F. Murphy and Theodore R. Carter, III.
Two Undocumented Aliens Sentenced for Their Roles in Tax Refund Fraud ConspiracyRead the Press Release
U.S. Attorney Kenneth Polite and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division announced that OSCAR ARMANDO PERDOMO, 35, was sentenced to serve 42 months in prison for conspiracy to defraud the United States by filing false income tax returns that fraudulently claimed large tax refunds, mail fraud, and aggravated identity theft. In addition, SUSANA CARILLO MENDOZA, 38, was sentenced to serve 19 months in prison for her role in the conspiracy to defraud the United States. The defendants were further ordered to pay restitution and to serve terms of supervised release.
Both defendants have been detained since their arrest. MENDOZA is a Guatemalan national and PERDOMO is a citizen of Honduras, and both face possible deportation following the completion of their sentences. They were charged with being part of a multi-jurisdictional conspiracy to file false income tax returns. To date, 16 defendants have entered guilty pleas to various charges in the case, including JACQUELINE J. ARIAS, a tax return preparer in Spruce Pine, Alabama, who is pending sentencing. Thus far, all defendants have been sentenced to prison.
According to the indictments in this case, the conspirators filed false returns listing Individual Taxpayer Identification Numbers (ITINs). An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who do not have, and are not eligible to obtain, a social security number. As alleged in the indictments, ARIAS was a certified acceptance agent, entrusted by the IRS with the responsibility of reviewing the documentation of an ITIN applicant’s identity and alien status for authenticity, completeness and accuracy before submitting their application to the IRS. The indictments charged that ARIAS and her coconspirators filed false applications for ITINs, in addition to false income tax returns, and that ARIAS collected preparation fees from the fraudulently-obtained tax refunds. According to the second superseding indictment, the conspirators purchased identification documents from overseas and Forms W-2 from other aliens illegally present in the United States for use in filing false income tax returns with ARIAS.
The case was investigated by U.S. Immigration and Customs Enforcement - Homeland Security Investigations; IRS-Criminal Investigation; the U.S. Secret Service; the U.S. Postal Inspection Service; and the Social Security Administration - Office of the Inspector General, in partnership with the St. Tammany Parish, La. and Jefferson Parish, La. Sheriffs’ Departments. The case was prosecuted by Department of Justice, Tax Division Trial Attorneys Hayden Brockett and Kevin Lombardi of the Justice Department’s Tax Division and Assistant United States Attorney David Haller.
Over 450 Schools Expected to Participate in Student Pledge Against Gun Violence DayRead the Press Release
United States Attorney Kenneth Polite announced that on Wednesday, October 15, 2014, members of the U. S. Attorney's Office for the Eastern District of Louisiana (the “Office”) and their law enforcement partners will meet with students across Southeast Louisiana as part of his Office’s first district-wide Student Pledge Against Gun Violence Day.
Middle and high school students will sign a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes. Elementary school children will make a simpler commitment, pledging that if they see a gun they will not touch it, they will assume that any gun they see might be loaded, and they will tell a teacher or a trusted adult.
In coordination with the Department of Justice’s Project Safe Neighborhoods program, the Student Pledge Against Gun Violence is a national program that recognizes the role that young people, through their own decisions, can play in reducing gun violence. This campaign against youth gun violence culminates each October in a Day of National Concern about Young People and Gun Violence. Students from around the country will join together in pledging to do their part to end gun violence. Over 10 million students nationwide have signed the pledge since its inception in 1996.
U.S. Attorney Polite stated that his Office began using the pledge during the 2013-14 school year, with approximately 2500 students signing the pledge at seven schools. Because of the outstanding response from school leaders and students, the Office decided to expand the initiative district-wide to include all schools in all 13 parishes, including Assumption, Jefferson, Lafourche, Plaquemines, Orleans, St. Bernard, St. Charles, St. James, St. John the Baptist, St. Tammany, Tangipahoa, Terrebonne, and Washington. "Our Office is pleased to take this opportunity to reach out to students, engage in a dialogue about gun violence and the importance of making right choices, and encourage them to become peacemakers of our time," stated U.S. Attorney Polite.
In addition to providing the pledges, the U.S. Attorney’s Office will coordinate with other state, local, and federal law enforcement agencies to provide speakers at several schools to talk to students about what they can do to reduce gun violence in their communities.
New Orleans Man, Christopher M. Schwab, Sentenced to 20 Years in Prison for Producing and Distributing Child PornographyRead the Press Release
U.S. Attorney Kenneth Polite announced that CHRISTOPHER M. SCHWAB, age 25, a resident of New Orleans, was sentenced today for four counts of producing child pornography involving four different minor victims, one count of distributing child pornography and one count of receiving child pornography.
United States District Chief Judge Sarah Vance sentenced SCHWAB to serve 20 years incarceration in the Bureau of Prisons, to be followed by 25 years of supervised release. Upon his release from incarceration, SCHWAB will have to register as a sex offender.
According to court documents, in August 2013, SCHWAB was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) after they determined that SCHWAB was responsible for sending images depicting the sexual exploitation of children. SCHWAB has been in custody since his arrest.
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.
This case was investigated by Homeland Security Investigations, the Jefferson Parish Sheriff’s Office, and the Kenner Police Department. The prosecution of this case was handled by Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
Gretna Woman, Marcia Peterson, Pleads Guilty to Defrauding Government AgenciesRead the Press Release
U.S. Attorney Kenneth Polite announced today that MARCIA PETERSON, 61, a resident of Gretna, Louisiana, pleaded guilty to two counts of theft of government funds and one count of wire fraud.
According to court documents, PETERSON was the executive director and accountant for CDC 58:12, a non-profit with a stated mission of transforming communities by creating opportunities in housing, education, health, and economic development. During the relevant time period, CDC’s primary sources of funding were federal grants from the U.S. Department of Education and the U.S. Department of Housing and Urban Development. These grants were administered by the Louisiana Department of Education, the Housing Authority of New Orleans, and the City of New Orleans. The funds were to be used only for approved purposes, including supportive services for residents of a public housing development, summer programs for children, and educational services.
From 2011 through 2013, PETERSON improperly withdrew approximately $87,000 of these federal funds from CDC’s bank account and spent the money on gambling and other personal expenses. Additionally, in August 2012, while working as CDC’s director and accountant, PETERSON submitted a fraudulent claim for unemployment insurance benefits to the Louisiana Workforce Commission. From August 2012 to December 2012, PETERSON made weekly certifications in which she falsely represented that she was unemployed, resulting in the Louisiana Workforce Commission providing PETERSON approximately $4,199.
PETERSON faces a maximum term of 20 years on the wire fraud charge and 10 years imprisonment on each of the theft of government funds charges. Each count also carries a possible fine of up to $250,000 and up to three years of supervised release following any period of imprisonment. Sentencing is scheduled for December 17, 2014, before U.S. District Court Judge Martin L.C. Feldman.
The case was investigated by special agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, the U.S. Department of Education - Office of Inspector General, the U.S. Department of Labor - Office of Inspector General, and the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Chandra Menon.
(Download Factual Basis )
Chamico Employees Plead Guilty to Conspiracy to Commit Mail FraudRead the Press Release
U.S. Attorney Kenneth Polite announced that JERRY ATHEY, age 56; DAVID LOWE, age 48; and TERRY CASTILOW, age 48, all residents of Bogalusa, Louisiana, pleaded guilty today before U.S. District Court Judge Helen G. Berrigan, to one count of conspiracy to commit mail fraud for their participation in a scheme to defraud the Louisiana Workforce Commission of unemployment benefits. CASTILOW also pleaded guilty to one count of mail fraud.
CASTILOW, LOWE, and ATHEY, were indicted in April 2014, along with CHARLES “CHUCK” MIZELL, JR., JAMES CREEL, WILLIAM DARRYL KING, TENILLE NIELSON, JACQUELINE MYERS, and ROGER NADEAU, for mail fraud and conspiracy to commit mail fraud. According to the indictment, beginning at a time unknown, but no later than on or about September 24, 2009, and continuing through on or about January 11, 2014, MIZELL, JR., CASTILOW, KING, LOWE, CREEL, ATHEY, NIELSON, MYERS, and NADEAU, conspired to defraud the Louisiana Workforce Commission (“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 factual basis signed by CASTILOW, LOWE, and ATHEY, he asked them to fraudulently file for unemployment so that he would not have to pay their full salaries during tough economic times for Chamico. CASTILOW, LOWE and ATHEY 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.
When CASTILOW became Chamico’s office manager in 2013, she began assisting MIZELL, JR., in facilitating the scheme for the other employees. According to the factual basis for CASTILOW’s plea, she completed the unemployment forms for six Chamico employees fraudulently representing to the Louisiana Workforce Commission that the employees did not work at Chamico when she knew that they were working and/or receiving income from Chamico. CASTILOW kept the payroll records for the employees and the ledgers showing how much cash each employee who was participating in the unemployment scheme was to receive each week. CASTILOW cashed the checks that MIZELL, JR. endorsed for those employees he was paying while they were drawing unemployment and still working for him. On pay day, those employees picked up the cash payments from CASTILOW.
On May 7, 2014, JACQUELINE MYERS pleaded guilty to conspiracy to commit mail fraud for her participation in the same scheme. MYERS is scheduled to be sentenced on September 24, 2014. CASTILOW, LOWE, and ATHEY will be sentenced on December 3, 2014.
CASTILOW, LOWE, ATHEY, and MYERS each face a maximum term of five years incarceration, a $250,000 fine, and three years supervised release on the conspiracy conviction. CASTILOW faces an additional sentence of up to twenty years in prison, a $250,000 fine and three years supervised release for her mail fraud conviction.
The trial of the remaining defendants is scheduled for September 15, 2014.
The case was investigated by the Department of Labor-OIG and the Federal Bureau of Investigation with assistance from the Louisiana Workforce Commission. The case is being prosecuted by Assistant United States Attorney Emily K. Greenfield.
(Download Factual Basis - Athey )
(Download Factual Basis - Castilow )
(Download Factual Basis - Lowe )
Eleven Alleged Members and Associates of the Young Melph Mafia Indicted on Federal Drug and Gun ChargesRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that JEFFREY WILSON, age 29; JACOBI BOYD, a/k/a “CO,” age 22; ALFRED COBBINS, a/k/a “AL,” age 22; JAWAN FORTIA, a/k/a “TITTIE,” age 21; DEONTRE HILLS, a/k/a “SOULJA,” age 22; DEDRICK KEELEN, a/k/a “ROY,” age 21; RUBEN GEIGER, a/k/a “RUE,” age 21; SHAWN GRACIN, a/k/a “GUNNER,” age 21; DELWIN MCLAREN, a/k/a “POO,” age 22; BRYAN SCOTT, a/k/a “KILLER,” age 20; and DARIUS WILLIAMS, a/k/a “D-MAN,” age 22, all residents of New Orleans, were charged yesterday in a five count superseding indictment which was unsealed today. COBBINS and FORTIA remain at-large and should be considered Armed and Dangerous. Photos of these two defendants are displayed below.
Defendant WILSON had previously been indicted in July 2014 for drug conspiracy and two cocaine distribution counts. The superseding indictment charges all defendants with conspiring to distribute and possess with the intent to distribute 28 grams or more of cocaine base or “crack.” Defendants BOYD, COBBINS, FORTIA, HILLS, KEELEN, GEIGER, GRACIN, MCLAREN, SCOTT, and WILLIAMS, who are part of a Central City gang called “The Young Melph Mafia” or “YMM,” were also charged with conspiracy to possess firearms in furtherance of drug trafficking crimes. The third count charges GRACIN and COBBINS with carrying and discharging a firearm in relation to a drug trafficking crime. The superseding indictment also re-alleges that WILSON distributed a quantity of cocaine hydrochloride on or about May 13, 2014, and that on May 30, 2014, he distributed 28 grams or more of cocaine base or “crack.”
Based upon the ongoing investigation, these defendants, most of whom grew up in and around the former Melpomene Housing Development, engaged in high volume street level drug dealing over the course of several years. During the course of this investigation, it was also determined that the defendants connected to the Young Melph Mafia routinely carried firearms to protect themselves while engaged in distributing illegal narcotics.
If convicted of the drug conspiracy, all defendants face a minimum of five years and a maximum of forty years of incarceration, a fine of $5,000,000 and at least four years of supervised release. If convicted of the gun conspiracy, the named defendants face a maximum of twenty years of incarceration, a fine of $250,000 and up to three years of supervised release.
GRACIN and COBBINS face a minimum of ten years of incarceration to be served consecutively to any other sentence imposed if convicted of carrying and discharging a firearm in relation to a drug trafficking crime. If convicted of the cocaine hydrochloride distribution count, WILSON faces a maximum of twenty years of incarceration, a fine of $1,000,000 and at last three years of supervised release. If convicted of the cocaine base or “crack” distribution, WILSON faces a minimum of five years and a maximum of forty years of incarceration, a fine of $5,000,000 and a minimum of four years of supervised release.
“As alleged, these defendants were responsible for dealing significant quantities of narcotics in their own community, and then using firearms as a means of protecting and enforcing their drug-trafficking enterprise,” state U.S. Attorney Polite. “They all now face the prospect of spending 40 years in prison. Those who are engaging in similar criminal conduct should take note. Our federal, state, and local law enforcement agencies are working in unison to eliminate large-scale drug trafficking and the violence that often accompanies it."
“This indictment is evidence that narcotics and firearms crimes are a dangerous mixture and will not be tolerated in our community,” said New Orleans ATF Special Agent in Charge Phillip Durham. “These crimes inevitably lead to violence. ATF, NOPD and our Multi-Agency Gang Unit partners will continue to combat firearms and narcotics crimes as well as gang activity in order to keep our citizens safe. ”
“Our message in this Group Violence Reduction effort is simple -- our community is demanding that the violence stop,” said Mayor Landrieu. “With this indictment, the Multi-Agency Gang Unit has led to the indictments of 95 individuals associated with 9 groups since the fall of 2012. Through NOLA FOR LIFE, we will continue to focus on keeping our citizens safe, reclaiming our neighborhoods, and offering opportunities to those who want to make better choices.”
"This is a signal to other gangs in New Orleans: If you keep up the violence, we will put you away," said Interim NOPD Police Chief Michael Harrison. "Our Homicide detectives are working closely with the U.S. Attorney’s Office as well as the DA’s Office to unravel complex and very dangerous groups who terrorize our community. Together this team collected the evidence necessary to arrest these gang members, who now face the potential of spending decades in prison."
U.S. Attorney Kenneth Polite, Jr. reiterated that the superseding indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department as partners in the metro area’s Multi Agency Gang Unit. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the Multi-Agency Gang (MAG) Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Valuable assistance to the investigation was provided by the United States Customs and Border Protection (CBP) Air and Marine Division. The case is being prosecuted by Assistant U. S. Attorneys Maurice Landrieu, Jr. and Edward Rivera.
(Download Superseding Indictment )
North Carolina Man, Robert Beckmann, Pleads Guilty to Creating and Selling Fake Mercedes-benz Automotive EquipmentRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that ROBERT BECKMANN, age 52, of Durham, North Carolina, pleaded guilty as charged yesterday before U.S. District Judge Kurt D. Engelhardt, to criminal infringement of a copyright, a misdemeanor, and his company, BECKMANN TECHNOLOGIES, INC., pleaded guilty to creating and selling non-authentic Mercedes-Benz diagnostic equipment.
According to court documents, BECKMANN owned BECKMANN TECHNOLOGIES, INC., a company that, among other things, sold remanufactured parts for Mercedes-Benz automobiles. Between about 2001 and July 2012, BECKMANN TECHNOLOGIES, INC., in conjunction with “Company A,” located in Harahan, Louisiana, “Company B,” located in Rancho Palos Verdes, California, and an individual in the United Kingdom, “J.C.,” produced and sold unauthorized, non-authentic versions of the Mercedes-Benz Star Diagnostic System (SDS), a hand-held computer containing proprietary, confidential software. The SDS is used by mechanics to diagnose problems with and assure the safety of Mercedes-Benz vehicles employing electronic control systems.
BECKMANN TECHNOLOGIES, INC. was responsible for creating hardware for the fake SDS units, including a “black box,” while Company A, with assistance from BECKMANN TECHNOLOGIES, INC. and others, obtained, modified, and duplicated the authentic SDS software so that it would operate on ordinary laptop computers and without Mercedes-Benz’s authorization or license. After learning that Mercedes-Benz had notified J.C. that his conduct was in violation of civil and/or criminal laws, representatives of BECKMANN TECHNOLOGIES, INC., Company A, and Company B discussed a plan to have J.C. “go underground and off the radar” and continue working on making fake SDS.
The “real” SDS sold for between $8,300 and $22,000 each, while the fake SDS sold for up to $11,000, depending on market factors. In total, Company A and Company B sold at least 795 fake SDS.
BECKMANN faces a maximum term of imprisonment of one (1) year and a $100,000 fine. BECKMANN TECHNOLOGIES, INC. faces a maximum fine of $500,000. Sentencing before Judge Engelhardt has been scheduled for December 10, 2014, at 9:00 a.m.
This case was investigated by agents from the Federal Bureau of Investigation. The prosecution of this case was handled by Assistant United States Attorney Jordan Ginsberg and Computer Crime and Intellectual Property Section (CCIPS) Senior Counsel Evan Williams.
(Download Factual Basis )
Investment Broker, Aaron Ortloff, Pleads Guilty to Wire Fraud Scheme Which Netted over $190,000Read the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that AARON ORTLOFF, age 42, of Kenner, Louisiana, plead guilty as charged yesterday before U.S. District Judge Stanwood R. Duval, Jr. to a one-count Bill of Information alleging a wire fraud investment scheme.
According to documents filed in court, ORTLOFF was an investment broker doing business as Ortloff Trading, L.L.C. ORTLOFF used a “gmail” email address to conduct business. Gmail servers are all located outside of the State of Louisiana, which gives federal authorities jurisdiction of interstate electronic transmissions.
From August 2007 through May 2012, ORTLOFF defrauded a victim of $191,000 by emailing monthly statements that represented that the victim’s investments were making a profit, when in reality Ortloff was stealing the money.
ORTLOFF faces a maximum of twenty years incarceration, a $250,000 fine, restitution and three years supervised release. Sentencing before Judge Duval has been scheduled for December 10, 2014.
This case was investigated by agents from the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Carter K.D. Guice, Jr. of the Fraud Unit.
(Download Factual Basis )
California Man, Theodore Platanitis, Pleads Guilty to Bank Fraud, Conspiracy to Commit Bank Fraud, and Health Care FraudRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that THEODORE PLATANITIS, age 44, of Rancho Cordova, California, pleaded guilty as charged yesterday before U. S. District Judge Kurt D. Engelhardt, to Conspiracy to Commit Health Care Fraud and Bank Fraud.
According to court documents, PLATANITIS worked as a money mule in an organization that hacked into the e-mail accounts of victims and then used that access to cause sums of money to be wired out of the victim’s bank accounts. PLATANITIS was recruited by unknown individuals to open bank account(s) in the United States to receive fraudulent wire transfers from the bank accounts of victims.
On August 24, 2011, the office manager for a New Orleans physician (“Doctor A”) received an e-mail from Doctor A’s America Online e-mail account, requesting that the office manager wire $32,300 from Doctor A’s bank account to PLATANITIS’S bank account. In fact, it was not Doctor A who sent the email, but rather another individual had taken control of Doctor A’s e-mail account, and, without Doctor A’s authorization, drafted and sent the e-mail to Doctor A’s office manager purporting to be Doctor A. Doctor A’s office manager complied with the e-mail and the money was wired to PLATANITIS’S account.
Once the deposit in the amount of approximately $32,000 had been fraudulently deposited into PLATANITIS’S account, PLATANITIS withdrew approximately $16,150 in cash and, acting upon instructions given to him, took the cash to stores with the capability of wiring money via Western Union located in Rancho Cordova, California, and wired different amounts to different locations in Malaysia in amounts not more than $5,000. Shortly thereafter, PLATANITIS returned to a bank branch and attempted to withdraw the remainder of the funds he had fraudulently obtained from Doctor A from his Bank of America business account.
PLATANITIS faces a maximum term of imprisonment of five years. Sentencing has been scheduled for December 10, 2014 at 9:00 a.m.
This case was investigated by the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorney Jordan Ginsberg.
(Download Factual Basis )
New Orleans Man, Giray Biyiklioglu, Sentenced to 16 Years in Prison for Wire Fraud, Aggravated Identity Theft, Tax, and Money Laundering ChargesRead the Press Release
United States Attorney Kenneth Allen Polite, Jr. and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division announced that GIRAY BIYIKLIOGLU, a/k/a “Johnny Bryan,” age 31, a Turkish national and resident of New Orleans, was sentenced today by U.S. District Judge Jay C. Zainey to 192 months in prison for conducting a scheme to defraud PayPal, in which he used the names, addresses, and/or Social Security numbers of dozens of identity theft victims. On October 31, 3013, following a four-day jury trial, BIYIKLIOGLU was convicted of thirteen counts of wire fraud, six counts of aggravated identity theft, two counts of tax evasion, and nineteen counts of money laundering, related in part to his purchases of expensive motorcycles and his wiring of fraud proceeds to his native Turkey. The Court further ordered BIYIKLIOGLU to pay restitution of $324,551.89 and to forfeit fraud proceeds, including a Ducati motorcycle, a Kawasaki jet ski, and more than $85,919.77 in U.S. currency.
According to court documents and proceedings, BIYIKLIOGLU devised a scheme to defraud PayPal, Inc. using PayPal accounts he had fraudulently set up in the names of other persons. As proven at trial, the defendant wired funds from bank accounts in his name, through the fraudulent PayPal accounts, and then back to bank accounts in his name. The trial evidence further showed that the defendant then falsely claimed to the original banks that the wire transfers he had initiated to PayPal were unauthorized. These false claims caused the banks to debit PayPal and credit the defendant’s original bank accounts. According to the evidence adduced at trial, the defendant in fact maintained control over all funds throughout the scheme.
The aggravated identity theft charges stem from the BIYIKLIOGLU’s use of the personal information of six victims in furtherance of his wire fraud scheme. The criminal tax violations relate to BIYIKLIOGLU’s evasion of his 2010 and 2011 individual income taxes. The money laundering charges pertain to BIYIKLIOGLU’s concealment of the fraud proceeds, including by wiring funds to Turkish banks, as well as his purchases of the motorcycles and jet ski.
“Biyiklioglu stole the identities of innocent victims to finance his own lavish lifestyle,” stated U.S. Attorney Kenneth Allen Polite, Jr. “The sentencing imposed today ensures that he will be brought to justice for defrauding these individuals and several financial institutions as part of his scheme.”
“Mr. Biyiklioglu’s criminal conduct violated many laws, including tax evasion, identity theft, and money laundering,” stated Gabriel L. Grchan, Special Agent in Charge, IRS Criminal Investigation. “Let his sentence serve as a warning to others considering this type of criminal activity. Giray Biyiklioglu will not only have to serve time in federal prison, but will also be required to forfeit the fruits of his criminal enterprise.”
The case was investigated by Special Agents of the United States Secret Service and the Internal Revenue Service, Criminal Investigation. The case was prosecuted by Trial Attorney Hayden Brockett of the U.S. Department of Justice, Tax Division and Assistant United States Attorney Chandra Menon.
Department of Justice Reaches Agreement with the Louisiana Supreme Court to Protect Bar Candidates with DisabilitiesRead the Press Release
The Justice Department announced today that it has entered into a settlement agreement with the Louisiana Supreme Court that will resolve the department’s investigation of the court’s policies, practices and procedures for evaluating bar applicants with mental health disabilities. The department’s investigation found that during the Louisiana bar admissions process licensing entities based recommendations about bar admission on mental health diagnosis and treatment rather than conduct that would warrant denial of admission to the bar.
The settlement agreement ensures the right of qualified bar applicants with mental health disabilities to have equal access to the legal profession as required by the Americans with Disabilities Act (ADA). It prohibits the court from asking unnecessary and intrusive questions about bar applicants’ mental health diagnosis or treatment. It also requires the court to refrain from imposing unnecessary and burdensome conditions on bar applicants with mental health disabilities, such as requests for medical records, compulsory medical examinations or onerous monitoring and reporting requirements. Title II of the ADA prohibits public entities, including licensing entities, from imposing unnecessary eligibility criteria that tend to screen out individuals with disabilities, or imposing unnecessary burdens on individuals with disabilities that are not imposed on others.
The department found that diagnosis and treatment, without problematic conduct, did not effectively predict future misconduct as an attorney and did not justify restrictions on admission. Yet the Louisiana bar admissions process imposed unnecessary burdens on applicants and attorneys based on their diagnosis and treatment, in violation of the ADA. Questions about mental health diagnosis and treatment, such as those used by Louisiana, are counterproductive to licensing entities’ interest in attorney fitness because individuals who would benefit from mental health treatment may be deterred from obtaining it by the knowledge that they will have to disclose their treatment to licensing authorities.
“Today’s agreement will ensure that qualified bar applicants with mental health disabilities are able to pursue their dream of becoming licensed attorneys, without discrimination based on diagnosis or treatment,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “Qualified individuals with disabilities, including mental health disabilities, have valuable contributions to make to the legal profession and to their communities. Their diagnosis should not hinder or prevent them from doing so. Though bar licensing entities have the important responsibility of ensuring that all licensed attorneys are fit to practice law, licensing entities must discharge this responsibility in a manner that is consistent with civil rights laws.”
“This agreement is a testament to the United States Department of Justice’s commitment to fighting discrimination against persons with disabilities and further ensures that qualified individuals will have the opportunity to pursue their career goals and make valuable contributions to our community,” said U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana. “The cooperation between the parties in reaching this agreement demonstrates a shared priority of protecting against discrimination.”
Under the agreement, the court will, among other actions:
- Revise its character and fitness screening questions so that they focus on applicants’ conduct or behavior, and ask about an applicant’s condition or impairment only when it currently affects the applicant’s ability to practice law in a competent, ethical and professional manner or is disclosed to explain conduct that may otherwise warrant denial of admission;
- Refrain from imposing unnecessary burdens on applicants with mental health disabilities by placing onerous disability-based conditions on their admission, invading their privacy, or violating their confidentiality;
- Re-evaluate prior and pending applications of applicants who disclosed mental health disabilities under the revised, non-discriminatory procedures set forth in the agreement; and
- Pay $200,000 to compensate a number of affected bar applicants and attorneys.
Since the department’s letter of findings concluding that the court was in violation of Title II of the ADA was issued in February, the court has worked cooperatively with the department to negotiate an agreement and to implement corrective measures.
The department has also raised issues about unnecessary bar application questions related to mental health disabilities with the states of Vermont and Connecticut and with the National Council of Bar Examiners (NCBE). The NCBE revised two of its questions about mental health on February 24, 2014.
More information about this settlement agreement and the obligations of licensing entities under the ADA may be found at www.ada.gov or by calling the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
Undocumented Aliens Sentenced for Tax Refund Fraud Conspiracy and Identity TheftRead the Press Release
United States Attorney Kenneth Allen Polite, Jr. and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division announced that four undocumented aliens were sentenced today to jail terms ranging from 24 to 42 months for their roles in a large conspiracy to defraud the United States by filing false income tax returns that fraudulently claimed large tax refunds. Three defendants were also sentenced for aggravated identity theft. All defendants have been detained since their arrest in June 2013. To date, sixteen defendants have entered guilty pleas to various charges in the case, including JACQUELINE J. ARIAS, a tax return preparer in Spruce Pine, Alabama, who has yet to be sentenced.
ELSIDES EDGARDO ALVARADO-CANALES, 36, was sentenced to serve 36 months in prison, after pleading guilty to conspiracy to defraud the United States and aggravated identity theft. CESAR ALEJANDRO SORIANO, 30, was sentenced to serve 42 months in prison on his guilty pleas to conspiracy and aggravated identity theft charges. OCTAVIO JOSUE PERDOMO, 25, was sentenced to serve 34 months in prison for his role in the conspiracy and for aggravated identity theft. AURELIO MONTIEL-MARTINEZ, 35, was sentenced to 24 months incarceration, after pleading guilty to conspiracy. ALVARADO-CANALES, PERDOMO, and SORIANO are natives of Honduras, while MONTIEL-MARTINEZ is a Mexican citizen. All of the defendants were present in the United States illegally and face possible deportation following the completion of their sentences. The defendants were further ordered to pay restitution and to terms of supervised release.
According to the indictments in this case, the conspirators filed false returns listing Individual Taxpayer Identification Numbers (ITINs). An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who do not have, and are not eligible to obtain, a social security number. As alleged in the indictments, JACQUELINE J. ARIAS was a Certified Acceptance Agent, meaning that she was entrusted by the IRS with the responsibility of reviewing the documentation of an ITIN applicant’s identity and alien status for authenticity, completeness and accuracy before submitting their application to the IRS. The indictments charged that ARIAS and her coconspirators filed false applications for ITINs, in addition to false income tax returns, and that ARIAS collected preparation fees from the fraudulently-obtained tax refunds. According to the second superseding indictment, the conspirators purchased identification documents from overseas and Forms W-2 from other aliens illegally present in the United States for use in filing false income tax returns with ARIAS.
"Today's announcement exemplifies IRS Special Agents' intense focus on the rigorous pursuit of identity theft and refund fraud," said Gabriel L. Grchan, Chief IRS Criminal Investigation. “These individuals demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims. IRS Criminal Investigation remains committed to the pursuit of identity theft and, together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”
“Defrauding the government in the fashion these defendants pleaded guilty to has a direct, negative impact on law-abiding taxpayers,” said Special Agent in Charge Raymond R. Parmer Jr., ICE Homeland Security Investigations (HSI) in New Orleans. “The money stolen from the government in this case might have been used to feed hungry children, pay our soldiers or make needed repairs on a local highway. HSI stands ready with our partners at the IRS and other agencies to hold those who seek to enrich themselves at the expense of others through tax fraud and other criminal schemes accountable for their actions.”
The case was investigated by U.S. Immigration and Customs Enforcement, which oversees Homeland Security Investigations; IRS-Criminal Investigation; the U.S. Secret Service; the U.S. Postal Inspection Service; and the Social Security Administration, Office of the Inspector General, in partnership with the St. Tammany Parish and Jefferson Parish Sheriffs’ Departments. The case was prosecuted by Department of Justice, Tax Division Trial Attorneys Hayden Brockett and Kevin Lombardi and Assistant United States Attorney David Haller.
(Download Superseding Indictment )
Houma Interpreter, Trina Marie Bourg, Indicted for Wire FraudRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that TRINA MARIE BOURG, age 45, of Houma, Louisiana, was indicted today for crimes involving the solicitation of illegal bribes from immigrants 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 payments from individuals (“victims”) illegally present in the United States. Unknown to the victims’ attorneys, BOURG represented to the victims 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 victims’ criminal or administrative cases. In 2011 and again in 2014, BOURG solicited two bribes totaling $4,000 from Victim “A” and his family members. BOURG received a total of $3,500 from Victim “A’s” family member who paid BOURG because BOURG represented to the victim’s family members that she would use the money to influence federal immigration officials.
If convicted, BOURG faces a term of incarceration of up to of twenty (20) years.
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 investigated by special agents from the U. S. Department of Homeland Security-HSI, the Louisiana State Police-Criminal Investigation Division, and the Terrebonne Parish Sheriff’s Office. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
(Download Indictment )