Eastern District of Louisiana
Press releases recorded for this federal judicial district.
Former Chiropractor, David Lee Killen, Indicted on Health Care Fraud and Aggravated Identity Theft ChargesRead the Press Release
DAVID LEE KILLEN, age 42, a resident of Covington, Louisiana, was charged today in a thirty-count health care fraud and four-count aggravated identity theft indictment by a Federal Grand Jury for his submission of fraudulent claims to Medicare, Medicaid and private insurers, announced U.S. Attorney Kenneth Allen Polite, Jr.
According to the indictment, KILLEN submitted bills to insurers for chiropractic adjustments, X-rays, and expensive allergy tests and back braces that he never provided. KILLEN is also charged with billing insurers for back braces at a rate of nearly $1,000 each, but actually providing a cheaper substitute to his patients that would not have been reimbursed at the same rate.
The indictment also charges aggravated identity theft for KILLEN’S alleged use of the medical doctor’s insurance provider numbers in conjunction with his health care fraud scheme. If an insurer would not reimburse certain services when provided by a chiropractor or licensed physical therapist, KILLEN allegedly billed the service as though it was provided by a medical doctor.
KILLEN is also alleged to have offered incentives and breaks for patient co-payments to his patients if they would agree to have an expensive allergy blood test for which his cost was $600 but for which he was reimbursed nearly $4,500. The indictment alleges that KILLEN even billed for a two-year-old to have the expensive test, although a cheaper pediatric version of the test was available.
If convicted, KILLEN faces a ten-year term of imprisonment for each of the health care fraud counts, along with two years of imprisonment for each of the aggravated identity theft counts. KILLEN is also subject to a fine of $250,000 and three years of supervised release following any term of imprisonment.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services. The case is being prosecuted by Special Assistant United States Attorney Juliana A. Etland.
(Download Indictment )
Gang Member from Hollygrove Area, Norman Ratcliff, Sentenced to 33 Years in Prison on Federal Rico, Drug, and Murder ChargesRead the Press Release
NORMAN RATCLIFF, a/k/a “Turk”, 21, a resident of New Orleans, was sentenced today by U.S. District Judge Stanwood R. Duval, Jr. to serve 396 months in prison for violating federal RICO, drug conspiracy, firearms conspiracy, and murder charges, announced U.S. Attorney Kenneth Allen Polite, Jr. RATCLIFF was a member of a gang from the Hollygrove area of the city that was involved in several shootings and murders in recent years. To date, all but one of the indicted members of this gang have pled guilty and have been sentenced. The last remaining co-defendant, Walter Conley, is scheduled to be sentenced on February 26, 2014.
RATCLIFF had previously pled guilty to RICO conspiracy, drug conspiracy, and participating in the drive-by shooting that resulted in the murder of Ms. Eula Mae Ivey on June 14, 2010.
A thirty-four count second superseding indictment was returned on November 16, 2012, charging Walter Conley, a/k/a “Ike Neezy”; Tyronne Stevenson, a/k/a “Duke”; Theron Golston, a/k/a “Thema”; Bernell Williams a/k/a “Bussy”, a/k/a “A-Boogie”; Carey Jones, a/k/a “Bean”; and Mark Glenn with participating in a RICO conspiracy, drug conspiracy, firearms conspiracy, and several substantive acts of violence.
Co-defendant Ryan Carroll pled guilty to participating in the RICO conspiracy and to discharging a firearm during a drug trafficking crime and a crime of violence. On October 16, 2013, he was sentenced to serve 210 months in federal prison.
Co-defendant Theron Golston was sentenced to life in prison on November 20, 2013 for his participation in the RICO conspiracy, the murder of Aaron Allen, and the drive-by murder of Ms. Eula Mae Ivey.
Co-defendants Tyronne Stevenson and Mark Glenn also pled guilty to various charges in the indictment, which included non-fatal shootings and were sentence back on December 11, 2013. Stevenson and Glenn were sentenced to serve 360 and 300 months, respectively.
Co-defendant Carey Jones was sentenced to life in prison on January 22, 2014.
“Ratcliff and his co-defendants were responsible for terrorizing the streets of New Orleans,” stated United States Attorney Polite. “Today’s lengthy sentence underscores that our community is fed up with violence in our neighborhoods. Those who perpetrate such violence are on notice: you will be held accountable for your actions.”
Mr. Polite thanked the federal agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (A.T.F.) who took the lead role in this investigation and who have been steadfast in their resolve to bring these violent offenders to justice. He also thanked the other members of the MAG UNIT who worked on this case and renewed the USAO’s commitment to assist the MAG UNIT in targeting these types of violent offenders.
The Multi-Agency Gang Unit is an N.O.P.D. led division which includes federal agents from A.T.F., the Drug Enforcement Administration, the Federal Bureau of Investigation, and the U.S. Marshals Service, as well as participants from the Orleans Parish Sheriff’s Office, the Louisiana State Police, State Probation and Parole, and the New Orleans District Attorney’s Office.
The case is being prosecuted by Assistant United States Maurice E. Landrieu, Jr.
Former St. Tammany Coroner, Peter Galvan, Sentenced for Conspiracy to Steal Funds from Coroner's OfficeRead the Press Release
PETER GALVAN, 54, a resident of St. Tammany Parish, and the former St. Tammany Parish Coroner, was sentenced today to serve 24 months in federal custody followed by one year of supervised release, fined $5,000, and ordered to pay restitution of at least $193,388. GALVAN pled guilty to conspiring to steal government funds from the St. Tammany Parish Coroner’s Office on October 23, 2013, announced U. S. Attorney Kenneth Allen Polite, Jr.
According to the Factual Basis, the Bill of Information to which GALVAN pled guilty, and other court documents filed in federal court:
GALVAN earned annual or sick leave to which he was not entitled. However, with the assistance of another coroner’s office employee, GALVAN received yearly payments for unused annual and sick leave, totaling $111,376 over a five year period.
GALVAN, as a physician, individually contracted with the City of Slidell, Louisiana to provide medical services for inmates of the Slidell City Jail. The contract was not with the St. Tammany Parish Coroner’s Office, but with GALVAN personally. However, GALVAN conspired with another individual employed with the St. Tammany Parish Coroner’s Office to service this contract while the other individual was supposed to be working for and was being paid by the St. Tammany Parish Coroner’s Office. The Coroner’s Office employee was paid at least $50,000 in public funds to fulfill GALVAN’s personal contract.
Additionally, GALVAN conspired with an employee of the coroner’s office to purchase a $9,170 generator for GALVAN’s personal vessel, a life raft and life jackets for his personal vessel valued at $4,841, and a Global Positioning Satellite Receiver for his personal use valued at $2,395, all with St. Tammany Parish Coroner’s Office funds.
Finally, GALVAN used his St. Tammany Parish Coroner’s Office credit card to make purchases of meals and other personal items with his public credit card totaling $15,606 which were unrelated to the office’s business.
The investigation of the St. Tammany Coroner’s Office is continuing.
“Members of this community, and indeed residents of this entire state, are tired of corruption and the negative effect it has on our reputation, economic development, and quality of life,” stated United States Attorney Polite. “Our residents expect that elected officials will provide honest services to the public, not use their offices or titles to enrich themselves. We expect, and will no longer tolerate, anything less.”
Special Agent in Charge of the Federal Bureau of Investigation, New Orleans Field Office, Michael Anderson stated: “This conviction clearly highlights the significant importance of the continuous engagement of the local citizenry to support law enforcement’s priority mission to address fraud, corruption and betrayals of public trust.”
“Today's sentencing of Dr. Peter Galvan again emphasizes the Internal Revenue Service, the U.S. Attorney’s Office and federal law enforcement partners will continue their aggressive pursuit of those who defraud the public and divert public money for personal use." said Gabriel L. Grchan, IRS Criminal Investigation Special Agent in Charge, New Orleans Field Office. "Honest taxpayers have been reassured today that no one is above the law."
Mr. Polite praised the investigative work of the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, and the State of Louisiana Legislative Auditor.
The case is being handled by the Office’s Fraud Unit, Assistant United States Attorneys Carter K. D. Guice, Jr. and Chandra Menon.
C. Ray Nagin, Former New Orleans Mayor, Convicted on Federal Bribery, Honest Services Wire Fraud, Money Laundering, Conspiracy, and Tax ChargesRead the Press Release
C. RAY NAGIN, 57, a resident of Frisco, Texas, and formerly the Mayor of New Orleans, was convicted in federal court today on 20 of 21 charges, announced U.S. Attorney Kenneth Allen Polite, Jr., FBI Special Agent-in-Charge Michael Anderson, and IRS Criminal Investigation Special Agent-in-Charge Gabriel Grchan. NAGIN was found not guilty on Count 7, a bribery charge.
According to evidence adduced at trial, between December 2004 and the present, NAGIN and several others participated in a conspiracy to commit bribery and honest services wire fraud. Evidence produced at trial showed that NAGIN, in his role as chief executive, devised a scheme to defraud the City of New Orleans and its citizens of his honest services through bribery and a kickback scheme, whereby NAGIN used his public office and official capacity to provide favorable treatment, including awarding contracts, that benefitted business and financial interest of individuals providing him with bribes and kickbacks in the form of checks, cash, granite inventory, wire transfers, personal services, and free travel.
According to court documents, in January 2005, NAGIN created Stone Age LLC, a granite company based in New Orleans. Evidence produced at trial showed, among other things, that NAGIN accepted approximately $62,250 in bribes from Rodney Williams and his company, Three Fold Consultants, LLC. Evidence also showed that NAGIN accepted bribes from Frank Fradella, including $50,000, granite inventory, and nine payoffs in the form of wire transfers from Fradella totaling $112,500. In some cases, money was deposited into NAGIN=s Stone Age corporate account, or free granite inventory was provided to Stone Age.
In addition, trial evidence proved that NAGIN participated in a money laundering conspiracy and filed false tax returns for the years 2005 to 2008.
"Our public servants pledge to provide honest services to the people of Southeast Louisiana. We are committed to bringing any politician who violates that obligation to justice," stated United States Attorney Kenneth Allen Polite, Jr.
"The tireless efforts of the investigative and prosecution team, exceeding 5 years, yielded the just and fair result in holding former Mayor Nagin fully accountable for serving his own personal interests well above those of the city at a time when it needed leadership, integrity and honest dealings the most," stated Michael Anderson, Special Agent in Charged for the FBI New Orleans Field Office.
“The investigation and subsequent prosecution of former Mayor, C. Ray Nagin, and his co-conspirators represents the closing of a dark chapter in the history of this great city. While most people were working to rebuild after Hurricane Katrina these individuals were conspiring to benefit themselves at the expense of the citizens that elected them” stated Gabriel L. Grchan, Special Agent in Charge of IRS Criminal Investigation. “Special Agents of IRS Criminal Investigation are elite financial investigators and will continue to lend our expertise to this and other task forces to ensure that those elected to public service do just that—serve the public, not contrive backroom deals to get themselves, and their family, private jet trips around the world or secure their family-owned businesses coveted contracts. It also sends a reminder to everyone that all income, legal and illegal, must be reported to the Internal Revenue Service. Know that we, with our federal law enforcement partners, will continue to ensure that all Americans, including public officials, are held to the same standard. No one is above the law.”
“The New Orleans Office of Inspector General congratulates our federal partners in the successful prosecution of the former mayor. OIG involvement in the case dates to 2009 when an evaluation led to a joint investigation of Greg Meffert. The OIG will continue to protect the City from those who would defraud it,” stated Ed Quatrevaux, Inspector General, City of New Orleans.
"The road to former Mayor Ray Nagin's conviction began with one phone call from a courageous citizen,” stated Rafael C. Goyeneche III, President of the Metropolitan Crime Commission. “That citizen told the MCC about shipments of granite from Florida by the truckload to the Nagin family business in New Orleans. It was only one piece of a corrupt puzzle but when placed in the hands of the FBI and the U.S. Attorney's office the pieces grew one by one into a sprawling picture of corruption and betrayal."
NAGIN faces the following terms of imprisonment:
- Count 1 (Conspiracy to commit bribery and honest services wire fraud), statutory penalties of up to five years in prison, a $250,000 fine and three years of supervised release;
- Counts 2-6 (Accepting a bribe), statutory penalties of up to 10 years in prison, a $250,000 fine and three years of supervised release on each count;
- Counts 8-16 (Accepting payoffs that caused interstate wire communications to occur between Louisiana and other states), statutory penalties of up to 20 years in prison, a $250,000 fine and three years of supervised release on each count;
- Count 17 (Conspiracy to commit money laundering) statutory penalties of up to 10 years in prison, a $250,000 fine and three years of supervised release; and
- Counts 18-21 (Filing false tax returns for years 2005 through 2008), statutory penalties of up to three years in prison, a $100,000 fine and three years of supervised release on each count.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division and the New Orleans Office of Inspector General. U. S. Attorney Polite would also like to acknowledge the assistance provided by the New Orleans Inspector General=s Office and the Metropolitan Crime Commission. The case is being prosecuted by Assistant U. S. Attorneys Matthew M. Coman, Richard R. Pickens, II and Matthew S. Chester.
Peter Hoffman and Michael Arata Indicted for Fraudulent Film Tax Credit SchemeRead the Press Release
PETER M. HOFFMAN, age 63, of Los Angeles, California and MICHAEL P. ARATA, age 47, of New Orleans, Louisiana, were charged in a six count Indictment by a Federal Grand Jury with conspiracy and wire fraud, announced United States Attorney Kenneth Allen Polite, Jr.
According to the Indictment, the Louisiana Motion Picture Incentive Act (LMPIA) was enacted to provide incentives for and encourage the filming of motion pictures and television programs in Louisiana. Under the LMPIA, companies making motion pictures were eligible to receive tax credits which were calculated as a percentage of the companies’ qualified expenditures in Louisiana. Qualified expenditures upon which companies could receive tax credits included expenditures on infrastructure. Infrastructure expenditures only included the purchase, construction and use of facilities that were directly related to and utilized for motion picture production in Louisiana. In order to qualify for infrastructure tax credits, all funds had to be actually expended, and such expenditures had to be verified by an independent Louisiana Certified Public Accountant. Businesses that applied to the State for infrastructure tax credits were entitled to receive an amount equal to 40% of their qualified and audited infrastructure expenditures. Once this amount was certified by the State of Louisiana, the applicants could then sell the certification to local businesses and individuals. Such sale of tax credits provided for a significant source of cash for film projects.
The defendant, PETER M. HOFFMAN, was the Chief Executive Officer of Seven Arts Entertainment, Inc., a company that was primarily involved in the motion picture and entertainment industry in California. As Chief Executive Officer of Seven Arts Entertainment, Inc., his duties included the selection and production of major motion pictures, strategic planning, business development, operations, financial administration and accounting. HOFFMAN was also an attorney and participated as a lawyer and executive in numerous financial and tax-preferred financings over a period of more than twenty-five years. HOFFMAN also owned, operated and controlled numerous companies related to and affiliated with Seven Arts Entertainment, Inc.
The co-defendant, MICHAEL P. ARATA, was a Louisiana attorney and businessman who also owned and operated companies involved in the movie and entertainment industry. Through their respective companies, HOFFMAN and ARATA were partners in different movie-industry business ventures.
Through their respective companies, HOFFMAN and ARATA purchased property located at 807 Esplanade, New Orleans, Louisiana. 807 Esplanade was an old mansion, located in the Faubourg Marigny neighborhood on the edge of the French Quarter, which had fallen into a severe state of disrepair over many years. The proposed reason for purchasing the property was to renovate the mansion and turn it into a film post-production facility.
After purchasing the property, HOFFMAN and ARATA submitted an application and supporting documents to the State of Louisiana in order to receive film infrastructure tax credits for money the defendants fraudulently claimed had been spent on 807 Esplanade. On or about June 19, 2009, the State of Louisiana issued approximately $1,132,480.80 in tax credits to the 807 Esplanade partnership.
The Indictment charges that HOFFMAN and ARATA fraudulently submitted materially false and misleading documents and information regarding 807 Esplanade expenditures to the auditors and to the State of Louisiana in order to receive infrastructure tax credits.
“The United States Attorney’s Office, the FBI and the Louisiana Office of the Inspector General stand committed to protecting the economic interests of the United States and the State of Louisiana,” stated U.S. Attorney Polite. “The State of Louisiana has provided significant incentives to the film and entertainment industry in order to develop business and employment in Louisiana. Such an important effort will not be criminally exploited.”
“Those who brazenly steal from the taxpayers and abuse tax credit programs should know that we will relentlessly pursue and hold them criminally accountable wherever possible,” stated Louisiana Inspector General Stephen Street. “We remain committed to working with the FBI and United States Attorney to root out this sort of corruption wherever it may exist.”
HOFFMAN and ARATA face a maximum term of imprisonment of five (5) years with respect to Count 1, and twenty (20) years with respect to each of Counts 2 through 6. The defendants also face a maximum fine of $250,000 with respect to each count, and supervised release of three (3) years.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that guilt of the defendants must be proven beyond a reasonable doubt.
The case is being investigated by Special Agents of the Federal Bureau of Investigation and the Louisiana Office of the Inspector General. The case is being prosecuted by Assistant United States Attorneys G. Dall Kammer and Jordan Ginsberg.
(Download Indictment )
Raceland Man, Johnny Smith, Pleads Guilty to Sexual Exploitation of Children and Possession of Child PornographyRead the Press Release
JOHNNY SMITH, age 43, a resident of Raceland, Louisiana, pleaded guilty as charged yesterday before U.S. District Judge Sarah S. Vance to the sexual exploitation of children and possessing images depicting the sexual victimization of children under the age of twelve-years-old, announced U.S. Attorney Kenneth Allen Polite, Jr.
According to the court documents, after a lengthy investigation FBI special agents executed a search warrant on SMITH’S home on July 23, 2013, during which they seized several items of electronic evidence. During a review of the evidence, agents found videos SMITH recorded in which he engaged in sexually explicit conduct with a three-year-old girl. SMITH recorded the videos between about May 12, 2013, and June 23, 2013. Agents also found approximately seven videos of seventeen images depicting children under the age of twelve engaged in sexually explicit conduct that SMITH had downloaded and saved to his computer.
SMITH faces a mandatory minimum term of imprisonment of fifteen (15) years and a maximum of thirty (30) years as to Count 1, and a maximum of twenty (20) years as to Count 2 followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender. Sentencing has been scheduled for May 14, 2004.
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 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 Factual Basis )
U.s. Attorney Polite Announces Personnel and Unit ChangesRead the Press Release
United States Attorney Kenneth Allen Polite, Jr. announced that today, Richard W. Westling is rejoining the U.S. Attorney’s Office to serve as the First Assistant U.S. Attorney. Effectively immediately, the senior staff of the Office is as follows:
Richard W. Westling serves as the First Assistant United States Attorney. Between 2008 and 2014, Mr. Westling was a partner in Waller, Lansden, Dortch & Davis, LLP, in Nashville, TN, and a shareholder in Ober|Kaler, in Washington, D.C. At both firms, he represented clients in health care fraud cases and a variety of other government enforcement matters. Previously, Mr. Westling served as general counsel of a Louisiana-based physician-hospital organization which administered a Medicare Advantage HMO Plan with more than 35,000 members. From 1997-2006, he practiced with the Law Offices of Richard W. Westling, LLC in New Orleans, where he defended complex federal criminal matters involving allegations of public corruption, health care fraud, mail and wire fraud, tax and environmental crimes and narcotics violations. He served as an Assistant United States Attorney for the Eastern District of Louisiana from 1992 until 1997, prosecuting a variety of white collar crimes and serving as the Asset Forfeiture Chief for three years. From 1990 to 1992, Mr. Westling was trial attorney and special assistant to the Assistant Attorney General of the Tax Division of the U.S. Department of Justice in Washington D.C. He graduated with honors from the University of the South in Sewanee, TN and cum laude from Tulane University Law School in New Orleans, where he was a member of the Board of Editors of the Tulane Law Review.
Eileen Gleason serves as Executive Assistant United States Attorney. Prior to her current position, Ms. Gleason served as Senior Litigation Counsel. She first joined the United States Attorney’s Office in January 1988 as an Assistant United States Attorney assigned to the Civil Division. After transferring to the Criminal Division, she specialized in prosecuting white collar crimes, political corruption and environmental crimes and served as Chief of the Financial Crimes Unit. Previously, Ms. Gleason served with the Department of Justice in Washington, DC. as a trial attorney with the Public Integrity Section of the Criminal Division from 2005 until 2008, and as a senior trial attorney, assistant chief, principal assistant chief and acting chief of the Environmental Crimes Section of the Environment and Natural Resources Division from 1999 until 2005. Ms. Gleason also has served as Assistant Director of the Office of Legal Education, Executive Office for United States Attorneys, in Washington, DC. She served as a United States Magistrate for the Eastern District of Louisiana from 1981 until 1983. Ms. Gleason practiced law with two New Orleans firms, Phelps Dunbar, LLP and Gelpi, Sullivan, Carroll & Laborde, and served judicial clerkships with the Honorable Edward J. Boyle, Sr. and Morey L. Sear, United States District Judges for the Eastern District of Louisiana. She is a graduate of Tulane University and Loyola University College of Law, where she was a member of the Editorial Board of the Loyola Law Review.
Duane A. Evans serves as the Chief of the Criminal Division. He joined the United States Attorney’s Office in August 2000 as an Assistant United States Attorney assigned to the Criminal Division. During his tenure in the Firearms/Violent Crimes Unit, he specialized in prosecuting matters related to firearms, narcotics, and violent crime. In 2006, he became the Supervisor for the Violent Crimes/Project Safe Neighborhoods Unit. In 2010, he became Chief of the Strike Force and Anti-Gang Unit. Beginning in June 2012, he served as Senior Litigation Counsel until his promotion to the position of Criminal Chief. After graduating from Tulane University School of Engineering and Loyola University College of Law, Mr. Evans served a judicial clerkship for Virgin Islands Superior Court Judge Ishmael A. Meyers from 1995-1997. He later worked as an Assistant District Attorney for the Orleans Parish District Attorney’s Office. He is a native of St. Thomas, United States Virgin Islands.
Peter M. Mansfield serves as Chief of the Civil Division. Prior to his current position, Mr. Mansfield served as Deputy Chief of the Civil Division since 2008. Since 2007, Mr. Mansfield also has supervised the office’s Financial Litigation Unit which is responsible for the enforcement and collection of criminal fines, restitution, and civil judgments in the district. As a supervisory AUSA, Mr. Mansfield has been the lead editor and reviewer of the office’s civil appeals in the Fifth Circuit Court of Appeals since 2011. Mr. Mansfield joined the United States Attorney’s Office in 2005 and has handled both defensive and affirmative civil cases in district and appellate courts as lead counsel. After graduating from Franciscan University and Ave Maria School of Law, both magna cum laude, Mr. Mansfield began his legal career as a litigation associate at Adams and Reese, L.L.P. in its New Orleans office. Mr. Mansfield is a native of Metairie, Louisiana.
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In addition, U.S. Attorney Polite announced that he has reorganized the Office’s Criminal Division into the following units:
The Organized Crime Strike Force/Violent Crime Unit investigates and prosecutes violent crime and firearms offenses, with a particular focus on conduct by organized street gangs and criminal enterprises. Along with representatives from local, state, and federal law enforcement agencies, members of the Unit actively participate in the Multi-Agency Gang Unit, an initiative led by the New Orleans Police Department to combat gang-related shootings and murders in the New Orleans area.
The Public Integrity Unit investigates and prosecutes corruption by public officials and law enforcement officers. The Unit also handles criminal civil rights matters, such as hate crimes, police brutality and human trafficking.
The Narcotics Unit investigates and prosecutes cases involving the distribution of illegal narcotics. The Unit primarily seeks to disrupt large-scale drug-trafficking organizations that qualify for prosecution by the Organized Crime and Drug Enforcement Task Force (OCDETF).
The Fraud Unit investigates and prosecutes fraud offenses of all types, including financial institution crime, health care fraud, bank fraud, computer fraud, institutional insurance fraud, large scale mail and wire fraud, and criminal tax violations. The Unit also handles child pornography cases under the Project Safe Childhood initiative.
The National Security Unit investigates and prosecutes cases involving international and domestic terrorism, threats involving weapons of mass destruction, terrorism financing, immigration violations, environmental crimes, and other offenses that impact national and border security.
The Appeals Unit defends convictions and judgments obtained by the Office in the United States Court of Appeals for the Fifth Circuit, the federal appellate court overseeing cases in Mississippi, Louisiana, and Texas. Additionally, the Unit, in consultation with the Department of Justice, decides when to seek appellate review of trial level rulings adverse to the United States.
U.S. Attorney Polite stated, "Through these unit changes, I have reallocated our personnel into units that more accurately reflect our District’s prosecutorial priorities. In particular, I am increasing the number of prosecutors addressing violent crime and narcotics offenses, while at the same establishing the Office’s first stand-alone unit to address political corruption and civil rights violations. These changes, together with the appointment of new senior management, represent significant steps toward the goal of increasing the productivity and efficiency of our Office."
New Orleans Men Sentenced for Bank RobberiesRead the Press Release
MYRON SAUNDERS, 35, and LAMAR NERO, 24, both residents of New Orleans, were sentenced today by U. S. District Judge Nannette Jolivette Brown for bank robbery and attempted bank robbery, announced U.S. Attorney Kenneth Allen Polite, Jr. SAUNDERS and NERO were sentenced to imprisonment for 228 months and 180 months, respectively. Each will be placed on 5 years supervised release following incarceration and incur a $500 special assessment.
In July 2013, following a six-day trial, a federal jury found SAUNDERS and NERO guilty of the June 24, 2011, robbery and December 24, 2011, attempted robbery of a Chase Bank in New Orleans, Louisiana, as well as the November 5, 2011, robbery of a Fidelity Homestead Bank in Metairie, Louisiana. SAUNDERS and NERO were also found guilty of using a firearm during the robbery of the Chase Bank.
The case was investigated by special agents of the Federal Bureau of Investigation and officers and detectives of the New Orleans Police Department and Jefferson Parish Sheriff’s Office.
The prosecution was handled by Assistant U.S. Attorneys Nolan D. Paige, Harry W. McSherry and Special Assistant U.S. Attorney Brian C. Ebarb.
New Jersey Man, Stanley Zdon, Iii, Charged with Conspiracy to Produce Child PornographyRead the Press Release
STANLEY ZDON, III, age 28, a resident of Tuckerton, New Jersey, was charged today in a Superseding Bill of Information with conspiracy to produce child pornography, announced U. S. Attorney Kenneth Allen Polite, Jr.
According to court documents, inn 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 was responsible for receiving, distributing, and producing videos and images depicting the sexual exploitation of children via the Internet. ZDON has been in custody since his arrest.
Conspiracy to produce child pornography carries a mandatory minimum sentence of 15 years and a maximum sentence of 30 years. If convicted, ZDON will have to register has a sex offender.
U.S. Attorney Kenneth Allen Polite, Jr. reiterated that the Superseding Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative 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 United States Postal Inspection Service. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
(Download Indictment )
Former Financial Advisor, Jabari Ragas, Guilty of Embezzling $1.4 Million from ClientsRead the Press Release
JABARI RAGAS, age 40, a resident of New Orleans, Louisiana, pled guilty to money laundering and filing a false tax return in federal court today before United States District Court Judge Lance M. Africk, announced United States Attorney Kenneth Allen Polite, Jr.
According to court documents, RAGAS was employed by Ameriprise Financial Services, Inc. (“Ameriprise”) as a registered broker and investment adviser from 2005 - 2009. RAGAS admitted in court 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. RAGAS has agreed to pay full restitution.
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 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 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.
RAGAS faces a maximum term of imprisonment of 10 years, on the money laundering count, and a maximum term of imprisonment of 3 years, on the tax count. RAGAS also faces a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person as to the money laundering count. As to the tax count, RAGAS faces a fine of $100,000 together with the costs of prosecution. RAGAS faces a 3 year term of supervised release as to the money laundering count and a 1 year term of supervised release on the tax count, following any term of imprisonment.
The case was investigated by the Special Agents of the Internal Revenue Service and the United States Secret Service, and the prosecution is being handled by Assistant United States Attorney Jon Maestri.
(Download Factual Basis )
Arizona Man, Vittorio Francesco Gonzalez-castillo, Arrested After Being Indicted for Conspiracy to Produce Child PornographyRead the Press Release
VITTORIO FRANCESCO GONZALEZ-CASTILLO, age 26, a resident of Tucson, Arizona, was arrested in Arizona after being indicted by an Eastern District of Louisiana Federal Grand Jury on January 24, 2014 for Conspiracy to Produce Child Pornography, announced U. S. Attorney Kenneth Allen Polite, Jr.
According to court documents, as a result of a nationwide child exploitation investigation, special agents with the New Orleans Office of the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) determined that GONZALEZ-CASTILLO was responsible for producing videos depicting the sexual exploitation of children.
Additionally, GONZALEZ-CASTILLO was previously indicted on February 6, 2013, by a Federal Grand Jury in the District of Arizona for Distribution, Possession, and Knowing Access of Child Pornography. He is currently awaiting trial in Arizona on those charges. Upon resolution of the charges in Arizona, GONZALEZ-CASTILLO will be extradited to the Eastern District of Louisiana to address the new charges filed against him.
Conspiracy to produce child pornography carries a mandatory minimum sentence of 15 years and a maximum sentence of 30 years. If convicted, GONZALEZ-CASTILLO will have to register has a sex offender.
U.S. Attorney Kenneth Allen Polite, Jr. reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative 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 prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
(Download Indictment )
Hollygrove Area Gang Member, Carey Jones, Sentenced to Life in Prison on Federal Rico, Drug, and Murder ChargesRead the Press Release
CAREY JONES, a/k/a “Bean,” 24 years old, a resident of New Orleans, was sentenced yesterday by U.S. District Judge Stanwood R. Duval, Jr. to serve the remainder of his life in prison for violating federal RICO, drug conspiracy, firearms conspiracy, and murder charges, announced U.S. Attorney Kenneth Allen Polite, Jr. JONES was a member of a gang from the Hollygrove area of the city that was involved in several shootings and murders in recent years. To date, all of the indicted members of this gang have pled guilty.
JONES had previously pled guilty to a superseding bill of information which charged him with participating in the RICO conspiracy, the non-fatal shooting of Larry Williams on December 24, 2007, the non-fatal shooting of Glin Butler on July 13, 2010, and the drive-by shooting that resulted in the murder of Ms. Eula Mae Ivey on June 14, 2010. He also admitted that he and the other gang members were street level dealers of crack cocaine.
A 34-count second superseding indictment was returned on November 16, 2012, charging Walter Conley, a/k/a “Ike Neezy”, Tyronne Stevenson, a/k/a “Duke”, Theron Golston, a/k/a “Thema”, Bernell Williams a/k/a “Bussy”, a/k/a “A-Boogie”, Norman Ratcliff, a/k/a “Turk”, and Mark Glenn with participating in a RICO conspiracy, drug conspiracy, firearms conspiracy, and several substantive acts of violence.
Co-defendant Theron Golston was sentenced to life in prison on November 20, 2013, for his participation in the RICO conspiracy, the murder of Aaron Allen, and the drive-by murder of Ms. Eula Mae Ivey.
Co-defendants Tyronne Stevenson and Mark Glenn also pled guilty to various charges in the indictment. On December 11, 2013, Stevenson and Glenn were sentenced to serve 360 and 300 months, respectively.
Co-defendant Norman Ratcliff is scheduled to be sentenced on February 12, 2014, and co-defendant Walter Conley is scheduled to be sentenced on February 26, 2014.
“As a community, we are fed up with violence on our streets,” stated U.S. Attorney Polite. “The lengthy sentences imposed in this successful Multi-Agency Gang Unit (“MAG Unit”) investigation – including a life sentence for Mr. Jones – illustrates that our Office is effectively utilizing its prosecutorial resources to combat violent crime and restore peace in our neighborhoods.”
U.S. Attorney Polite thanked the federal agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“A.T.F.”) who took the lead role in this investigation and who have been steadfast in their resolve to bring these violent offenders to justice. He also thanked the other members of the MAG Unit who worked on this case and renewed the USAO’s commitment to assist the MAG Unit in targeting these types of violent offenders.
The MAG Unit is an N.O.P.D. led division which includes federal agents from A.T.F., the Drug Enforcement Administration, the Federal Bureau of Investigation, and the U.S. Marshals Service, as well as participants from the Orleans Parish Sheriff’s Office, the Louisiana State Police, State Probation and Parole, and the New Orleans District Attorney’s Office.
The case is being prosecuted by Assistant United States Maurice E. Landrieu, Jr.
Three Men from Tennessee Charged with Sex Trafficking in the New Orleans AreaRead the Press Release
GRANVILLE ROBINSON , a/k/a “BEAR” and “HB”, age 25, from Memphis, Tennessee; DUANE PHILLIPS, a/k/a “P-nut,” age 28, from Memphis, Tennessee; and ANTHONY ELLIS, a/k/a “Anthony Deshun Lloyd,” “Animal,” and “AD”, age 25, from Memphis, Tennessee, were arrested today for offenses related to their involvement in sex trafficking adult victims to New Orleans as charged in a five count indictment dated December 20, 2013 and unsealed today by Chief Judge Sarah S Vance, announced Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division and United States Attorney Kenneth Allen Polite, Jr.
According to the Indictment, from May 20, 2013, until December 20, 2013, ROBINSON, PHILLIPS and ELLIS conspired to recruit, entice, harbor and transport several adult women by means of force, threats of force, fraud and coercion to engage in commercial sex acts in New Orleans and elsewhere. In addition to being charged with conspiring to commit sex trafficking, ROBINSON and PHILLIPS are each charged with a substantive count of sex trafficking by force, fraud or coercion. ROBINSON and PHILLIPS are also charged with transporting women in interstate commerce for the purpose of prostitution between May 20, 2013, and July 2, 2013.
If convicted of conspiracy to commit sex trafficking and sex trafficking by force, fraud or coercion, ROBINSON, PHILLIPS, and ELLIS each face a statutory maximum sentence of life imprisonment, a $250,000 fine and a life time of supervised release. If convicted of transportation for prostitution, ROBINSON and PHILLIPS face a statutory maximum of ten years in prison, a $250,000 fine and 3 years supervised release.
United States Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case was investigated by agents from the New Orleans Field Offices of the Federal Bureau of Investigation (FBI) and Department of Homeland Security (DHS) as well as the Memphis Field Office of the FBI. The prosecution of this case is being handled by Special Litigation Counsel John C. Richmond and Trial Attorney Christine M. Siscaretti of the Civil Right Division’s Human Trafficking Prosecution Unit along with Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
(Download Indictment )
Metairie Man, Dorvin Echeverria-zeledon, Charged with Crimes Involving the Sexual Exploitation of ChildrenRead the Press Release
DORVIN ECHEVERRIA-ZELEDON, age 24, of Metairie, Louisiana, was charged in a one-count indictment today for crimes involving the sexual exploitation of children, announced United States Attorney Kenneth Allen Polite, Jr.
If convicted, ECHEVERRIA-ZELEDON faces up to a maximum of twenty (20) years in prison, followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender.
United States Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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 is being investigated by special agents from the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
(Download Indictment )
California Man, Aung Gaw, Indicted for Crimes Involving the Sexual Victimization of ChildrenRead the Press Release
AUNG GAW, a/k/a Michael Gaw, age 25, of Fremont, California, was charged today in a two count indictment with Conspiracy to Produce Child Pornography and Receipt of Materials Involving the Sexual Exploitation of Minors, announced U. S. Attorney Kenneth Allen Polite, Jr.
Conspiracy to Produce Child Pornography carries a mandatory minimum of fifteen (15) years and a maximum sentence of thirty (30) years imprisonment and Receipt of Child Pornography carries a mandatory minimum sentence of five (5) years and a maximum sentence of twenty (20) years. In addition, GAW is subject to a term of supervised release after imprisonment for a minimum of five (5) years up to life. If convicted, GAW 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.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. GAW is being held in federal custody pending trial which is scheduled for March 10, 2014, before Chief United States District Court Judge Sarah S. Vance.
This case is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations and the U.S. Postal Inspection Service. The prosecution of this case is being handled by Fraud Section Chief and Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
(Download Indictment )
U.s. Attorney's Office for the Eastern District of Louisiana Collects over $366 Million in Civil and Criminal Actions for U.s. Taxpayers in Fiscal Year 2013Read the Press Release
U.S. Attorney Kenneth A. Polite, Jr. announced today that the Eastern District of Louisiana U.S. Attorney’s Office collected $366,530,698.00 in criminal and civil actions in Fiscal Year 2013. Additionally, the Eastern District of Louisiana worked with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $588,643,036.25 in civil cases pursued jointly with these offices.
Attorney General Eric Holder announced on Wednesday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorneys’ Offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
U.S. Attorney Polite also commented on the FY 2013 figures:
“The collection of criminal and civil debts owed to the United States replenishes the public treasury, makes crime victims financially whole, and ensures that federal debtors timely and fully address the consequences of their conduct. As such, aggressive collection of civil judgments and criminal fines and restitution has been, and will continue to be, a hallmark of this office’s work on behalf of the residents of the Eastern District of Louisiana.”
As just one example, in the summer of 2012, the Eastern District of Louisiana recovered $400,000.00 in victim restitution from defendant Reginald Harper, who was convicted along with co-defendant Troy Fouquet of conspiracy to commit bank fraud. Harper and Fouquet were ordered to pay restitution in the amount of $570,955.71 to First Community Bank.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
Texas Woman, Ebony Williams White, Indicted on Wire Fraud and Obstruction ChargesRead the Press Release
EBONY WILLIAMS WHITE, age 33, a resident of Katy, Texas, was charged in a seven count wire fraud and one count of obstruction indictment for wire transferring $207,135 without authorization into her personal bank account from her employer’s bank accounts, announced U.S. Attorney Kenneth Allen Polite, Jr.
According to the indictment, WHITE was employed by Jefferson Community Health Care Centers, Inc. in Marrero, Louisiana, from February 2008 until March 2010, eventually attaining the position of Chief Financial Officer (“CFO”). Once in the position of CFO, WHITE devised a scheme to fraudulently transfer funds from her employer’s bank accounts into a separate bank account she controlled. WHITE wire transferred the unauthorized funds to a different bank than the one she identified and used for the bi-weekly payroll checks to which she was entitled.
When WHITE learned that federal charges against her were contemplated for the fraudulent wire transfers, she attempted to obstruct the investigation by submitting to the government a document which, if authentic, would have potentially entitled her to receive $137,000 plus bonuses for work over and above what was required of her as CFO. Other individuals allegedly authorizing the additional funds in the document provided by WHITE denied that an agreement ever existed for WHITE to receive any funds in addition to her bi-weekly pay check as CFO.
If convicted, WHITE faces a maximum term of imprisonment of one hundred and sixty (160) years, a fine of $250,000 and three years of supervised release following any term of imprisonment.
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.
The case was investigated by the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, The Louisiana Legislative Auditor’s Office and the United States Attorney’s Office. The case is being prosecuted by Special Assistant United States Attorney Juliana A. Etland.
(Download Indictment )
New Orleans Area Merchant, Long T. Trinh, Pleads Guilty to over $2 Million in Food Stamp FraudRead the Press Release
LONG T. TRINH, age 44, a resident of New Orleans, Louisiana, pled guilty in federal court today before U.S. District Judge Mary Ann Vial Lemmon to receiving approximately $2,296,379 from the United State Department of Agriculture based upon food stamp benefits through his store Seafood Heaven, located in Gretna, Louisiana, that were not authorized, announced U. S. Attorney Kenneth Allen Polite, Jr.
According to court documents, grocery retailers who participate in the Supplemental Nutrition Assistance Program (“SNAP”), a federal government program formerly known as the Food Stamp Program, may only accept and redeem food stamp benefits in exchange for the sale of eligible food items. Retailers may not exchange food stamp benefits for cash or any other ineligible items of value such as tobacco products or alcoholic beverages. Store owner LONG T. TRINH knowingly presenting for payment and redemption SNAP benefits which had been purchased in exchange for cash money and ineligible items through his store.TRINH faces five (5) years imprisonment and/or a maximum fine of $250,000.00, and three (3) years of supervised release following any term of imprisonment. Sentencing is set for April 3, 2014.
This case was investigated by the United State Department of Agriculture, Office of Inspector General, and the Louisiana Department of Children and Family Services. The case is being prosecuted by Assistant United States Attorney Loan “Mimi” Nguyen.
(Download Factual Basis )
Los Angeles Gang Member, Quenshey Mitchell, Convicted of Heroin Conspiracy and Obstruction of Justice Involving Murder of A Federal WitnessRead the Press Release
QUENSHEY MITCHELL, a/k/a “Ripper” “Baby Ripper”, “Q”, age 36, from Los Angeles, California, was convicted today of all six counts of a superseding indictment which included charges of conspiracy to distribute in excess of a kilogram of heroin, multiple conspiracies to obstruct justice, including conspiracies to obstruct justice through murder and two counts of obstruction of justice through murder in federal court following a four day trial, announced U.S. Attorney Kenneth Allen Polite, Jr.
The trial evidence showed Mitchell to be the Los Angeles source of supply of multiple kilograms of heroin being transported to New Orleans by female couriers. Cristina S. Williams, who had previously been charged in this District for her role in transporting heroin, was murdered in Los Angeles on July 29, 2010, as the Drug Enforcement Administration’s (DEA) investigation progressed to identify the leaders of the heroin conspiracy. After Ms. Williams’s murder, Mitchell, a member of the Rollin Sixty Crip gang in Los Angeles was indicted in New Orleans for his role in the heroin conspiracy and following an investigation by the Los Angeles Police Department and DEA’s investigation of Ms. Williams’s murder, Mitchell was indicted in the six count superseding indictment.
MITCHELL faces the following terms of imprisonment:
- Counts 1 (heroin conspiracy) – life imprisonment as a result of Mitchell’s two prior felony drug convictions;
- Counts 2 and 4 (conspiracy to obstruct justice through murder) – life imprisonment for each count;
- Counts 3 and 5 (obstruction of justice through murder) – life imprisonment for each count; and
- Count 6 (conspiracy to obstruct justice) – maximum term of 20 years imprisonment.
Sentencing is scheduled for April 10, 2014, before U.S. District Judge Eldon E. Fallon.
The case was investigated by Special Agents of the Drug Enforcement Administration and Detectives with the Los Angeles Police Department. The case was prosecuted by Assistant U. S. Attorneys William J. Quinlan, Jr. and Harry W. McSherry.
Financial Advisor, Jabari Ragas, Charged with Money Laundering and Tax FraudRead the Press Release
JABARI RAGAS, age 40, a resident of New Orleans, Louisiana, was charged in a two count bill of information today with money laundering and filing a false tax return, announced U. S. Attorney Kenneth A. Polite, Jr.
According to court documents, RAGAS was employed by Ameriprise Financial Services, Inc. (“Ameriprise”) as a registered broker and investment adviser. 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 his retirement. The client made contributions from 2006 – 2009.
Without authorization, RAGAS began moving money from the Ameriprise SEP account into an account ending in X0686 that was controlled by him. On June 26, 2009, RAGAS used an interstate wire to transfer $40,000 from this Ameriprise SEP account to that personal bank account ending in X0686.
The client later checked the account balance and inquired as to why the account balance was lower than it should have been. RAGAS falsely told the client that the funds had been transferred to an investment account of a different financial institution located in Texas. RAGAS was then 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 transfer $40,000 from the Ameriprise account of the client to his account ending in X0686, RAGAS then allegedly committed money laundering on June 29, 2009, by further transferring $20,000 into a different account controlled by RAGAS ending in X6565.
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.
If convicted, RAGAS faces a maximum term of imprisonment of ten years, on the money laundering count, and a maximum term of imprisonment of three years, on the tax count. RAGAS also faces a fine of $250,000.00 or the greater of twice the gross gain to the defendant or twice the gross loss to any person as to the money laundering count. As to the tax count, RAGAS faces a fine of $100,000 together with the costs of prosecution. RAGAS faces a three year term of supervised release as to the money laundering count and a one year term of supervised release on the tax count, following any term of imprisonment.
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.
The case was investigated by the Special Agents of the Internal Revenue Service and the prosecution is being handled by Assistant United States Attorney Jon Maestri.
(Download Bill of Information )
Developer, Praveen Kailas, Sentenced to 30 Months for Theft of Government Funds and Conspiracy ChargesRead the Press Release
PRAVEEN KAILAS, age 30, a resident of New Orleans, Louisiana, was sentenced to 30 months in prison by the Honorable Sarah S. Vance after pleading guilty in August to a bill of information charging him with one count of conspiracy to commit theft of government funds (18 U.S.C. § 371) and one count of theft of government funds (18 U.S.C. § 641), announced the U.S. Attorney’s Office today.
KAILAS’s charges stem from his company, Lago Construction, L.L.C.’s, overbilling its construction monitoring subcontract for the Louisiana Road Home’s Small Rental Property Program (“SRPP”). The Department of Housing and Urban Development (“HUD”) funds the SRPP which provides monetary assistance to property owners to repair their small scale rental properties damaged by Hurricanes Katrina or Rita. In order to receive the grant, a small rental property owner has to agree to make the renovated rental units available to moderate to low-income tenants for a period of years. HUD provided the State of Louisiana Office of Community Development with federal funds to administer the SRPP. The State of Louisiana in turn subcontracted with private entities to oversee the administration of the SRPP, including the renovation of the properties.
Starting on June 6, 2011, Lago Construction, L.L.C., began its subcontract performing construction monitoring of the renovations of SRPP funded properties. KAILAS’s theft of federal funds designated for SRPP administration began from the inception of Lago Construction, L.L.C.’s subcontract when Naveen Kailas was billed for working on the subcontract 40 hours each week, but did not spend 40 hours each week performing SRPP construction monitoring services or any other administrative services.
KAILAS admitted that he and other stakeholders of Lago Construction, L.L.C., solicited monitors to work on the construction of a home they owned in New Orleans, Louisiana, and/or to work at other companies owned and operated by them. Hours that these monitors spent on other projects for KAILAS and other stakeholders of Lago Construction, L.L.C., were not deducted from the hours that were billed to the SRPP contract nor were the monitors paid separately for the work they performed on other projects. KAILAS and Lago Construction, L.L.C., were paid from federal dollars for these monitors as if they had spent all the hours they billed each week performing services related to the SRPP.
The court found KAILAS overbilled $236,000 and ordered him to pay restitution to HUD in the amount of $67,524.00 because the entity dispersing the HUD funds previously withheld $168,476.00 from KAILAS’s invoices. KAILAS will be on 3 years supervised release following his release from prison.
The case was investigated by the Department of Housing and Urban Development-OIG and the Federal Bureau of Investigation with assistance from the Department of Homeland Security-OIG. The case was prosecuted by Assistant United States Attorney Emily K. Greenfield.
New Orleans Elevation Company and Its Owner, Ramon Santos, Sentenced for Conspiracy to Commit Money LaunderingRead the Press Release
RENDON CONSTRUCTION, LLC, a New Orleans-based house raising, leveling, and foundation repair company, and its owner, RAMON SANTOS, age 43, a resident of Kenner, were sentenced today in federal court today before U. S. District Judge Jay C. Zainey for conspiring to commit money laundering, announced U.S. Attorney Kenneth Allen Polite, Jr. RENDON was sentenced to two years of organizational probation and a special assessment of $400. SANTOS was sentenced to three years of probation and a $100 special assessment. The Court declined to impose a fine on either defendant because they had agreed to forfeit $281,810 to the United States.
According to court documents, between April 2011 and July 2011, RENDON and SANTOS conspired with each other to conduct financial transactions designed to conceal and disguise the nature and source of the proceeds of harboring, encouraging and inducing aliens to reside in the United States, and to promote the harboring, encouraging and inducing aliens. In furtherance of the conspiracy, RENDON, through SANTOS, issued checks amounting to approximately $281,810 to Diablo Construction, a shell company. Those checks, which represented the proceeds of harboring, encouraging and inducing aliens to reside in the United States through employment at RENDON job sites, were cashed by SANTOS, and the cash was used to pay RENDON's illegal alien workers.
"The use of illegal labor and schemes to obscure such conduct prevents honest businesses from competing on a level playing field against those who break the law," stated U. S. Attorney Polite.
"Companies that violate federal law by employing workers illegally 'under the table' gain an unfair advantage over businesses that play by the rules," said Raymond R. Parmer Jr., special agent in charge of HSI New Orleans. "HSI is committed to investigating and seeking prosecution of illegal employment practices to protect the legitimate workers and businesses that support our nation’s economy."
The case was investigated by Homeland Security Investigations (HSI), with the assistance of the Internal Revenue Service (IRS). The case was prosecuted by Special Assistant U. S. Attorney Robert Weir and Assistant U.S. Attorney David Haller.
Two Texas-area Individuals Charged with Sex Trafficking of A Minor by Force, Fraud, and Coercion into the New Orleans AreaRead the Press Release
TAUREAN OKEITH JACKSON, a/k/a “Marvelous Rich,” “Richard Jones,” and “Richard Marvelously”, age 24, from Dallas, Texas, and ANDREA BIRDOW, age 22, from Sherman, Texas, were charged today in a five-count Indictment for offenses related to their involvement in the sex trafficking of a minor from the Dallas, Texas-area into the New Orleans area for the purposes of that minor engaging in prostitution, announced United States Attorney Kenneth Allen Polite, Jr.
According to the Indictment, in mid-June 2013, JACKSON and BIRDOW met the victim, who was 16 years-old, in the Dallas, Texas-area, and shortly thereafter recruited her to being working 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 also provided the victim with alcohol and/or illicit drugs to numb her senses, control her behavior, and encourage the victim to continue engaging in prostitution. JACKSON also controlled the victim by violence, including beating her with an extension cord and beating and choking BIRDOW in front of the victim, while telling the victim that he would do the same to her if she tried to leave him. JACKSON was the creator and host of a Dallas-area radio program entitled, “Cheap Hoes Gotta Go.” Ultimately, BIRDOW and the victim were arrested in a Metairie hotel room by undercover law enforcement officers on July 10, 2013. JACKSON was arrested in Dallas, Texas, approximately one week later. The Indictment also provides notice of an enhancement of JACKSON’S sentence upon conviction based on his prior convictions for Compelling Prostitution of an Individual Under the Age of 18and Sexual Assault of a Child lewd and lascivious assault of a minor in Dallas, Texas.
If convicted, BIRDOW faces a maximum sentence of life imprisonment, as well as a life time of supervised release, and a $250,000 fine. 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, and a $250,000 fine. Both BIRDOW and JACKSON can also be required to register as sex offenders.
United States Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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 Indictment )
Ponchatoula Man, Robert Swan, Charged with the Sexual Exploitation of Children, as Well as the Distribution and Receipt of Child PornographyRead the Press Release
ROBERT SWAN, age 51, a resident of Ponchatoula, Louisiana, was charged today in a three-count Indictment with the sexual exploitation of children, as well as receiving and distributing images depicting the sexual victimization of children, announced United States Attorney Kenneth Allen Polite, Jr.
According to the Indictment, between a date unknown and June 25, 2012, SWAN coerced a six-year-old girl to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Additionally, SWAN was charged with knowingly receiving and distributing videos and images of children engaging in sexually explicit conduct. The Indictment also provides notice of an enhancement of SWAN’S sentence upon conviction based on his prior conviction for lewd and lascivious assault of a minor in Escambia County, Florida.
If convicted, SWAN faces a mandatory minimum term of imprisonment of 25 years and a maximum of 50 years as to Count 1, and a mandatory minimum sentence of 15 years and a maximum sentence of 40 years as to each of Counts 2 and 3, followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender.
United States Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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 is being investigated by investigators from the State of Louisiana - Office of the Attorney General. The prosecution of this case is being handled by Assistant United States Attorneys Jordan Ginsberg.
(Download Indictment )
New Orleans Man, Gregory R. Alexander, Sentenced for Attempting to Firebomb His TruckRead the Press Release
GREGORY R. ALEXANDER, 36, a resident of New Orleans, Louisiana, was sentenced yesterday by U. S. District Judge Carl J. Barbier for his involvement in possessing unregistered destructive devices in a failed attempt to destroy his truck in February, announced U. S. Attorney Kenneth Allen Polite, Jr. Judge Barbier imposed a sentence of 18 months imprisonment, to be followed by two years of supervised release.
ALEXANDER pleaded guilty on August 22, 2013, to unlawfully possessing multiple destructive devices. Judge Barbier granted a downward departure citing the defendant’s lack of any meaningful criminal history, his intent to only damage his personal property and the factual circumstances leading up to the criminal activity.
According to court records, ALEXANDER, made and used multiple flammable liquid devices in a failed attempt to burn his truck.
This case was investigated by Special Agents of the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department and Bomb Squad. The case was prosecuted by Assistant United States Attorney Tony Gordon Sanders.
John Labee Pleads Guilty to Aiding and Assisting in the Preparation of False Tax Documents, Making False Statements on Income Tax Returns and Lying to A Federal Grand JuryRead the Press Release
JOHN LABEE, age 35, a resident of Slidell, Louisiana plead guilty yesterday before United States District Judge Carl J. Barbier 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, announced United States Attorney Kenneth Allen Polite, Jr.
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 prepared and filed approximately 460 federal tax returns that falsely claimed, and he charged substantial preparation fees, which he failed to report on his personal income tax returns. LABEE’S conduct resulted in an intended loss to the United States, of approximately $2,242,121 of federal income tax withholdings, and he failed to pay approximately $163,000 in federal taxes personally.
LABEE faces a maximum term of imprisonment of 11 years in prison, followed by up to 3 years of supervised release, and restitution as ordered by the Court. Sentencing has been scheduled for March 20, 2014, at 9:30 am.
The case was investigated by agents with the Internal Revenue Service. The case is being prosecuted by Assistant United States Attorney Jordan Ginsberg.
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Two Gang Members from Hollygrove Area Sentenced on Federal Rico, Drug, and Firearms ChargesRead the Press Release
TYRONNE STEVENSON aka “Duke”, 23, and MARK GLENN, 26, both residents of New Orleans, were sentenced today by U.S. District Judge Stanwood R. Duval, Jr. for violating federal RICO, drug conspiracy, firearms conspiracy, and attempted murder charges, announced U.S. Attorney Kenneth Allen Polite, Jr. Both STEVENSON and GLENN were members of a gang from the Hollygrove area of the city involved in several shootings and murders in recent years. To date, all of the indicted members of this gang have pled guilty. The remaining gang members are awaiting sentencing.
During their previous guilty pleas, both STEVENSON and GLENN admitted that they and the other gang members were street-level dealers of crack cocaine. STEVENSON also pled guilty to the attempted murder of rival drug dealers Jamal Garner and Demarco Henderson that took place on March 17, 2009. During this shooting an eight-year-old boy was also wounded by gunfire. Additionally, STEVENSON pled guilty to the attempted murder of rival drug dealer Glin Butler that took place on April 10, 2009. GLENN also pled guilty to a subsequent attempted murder of Glin Butler that took place on June 13, 2010. Based on this conduct STEVENSON was sentenced to serve 30 years in prison and GLENN was sentenced to serve 25 years in prison.
A thirty-four count second superseding indictment was returned on November 16, 2012, charging Walter Conley, aka “Ike Neezy”, TYRONNE STEVENSON, Theron Golston, aka “Thema”, Bernell Williams aka “Bussy”, aka “A-Boogie”, Norman Ratcliff, aka “Turk”, and MARK GLENN with participating in a RICO conspiracy, drug conspiracy, firearms conspiracy, and several substantive acts of violence.
Co-defendant Ryan Carroll, aka “Ronnie Boo,” pled guilty to participating in the RICO conspiracy and to discharging a firearm during a drug trafficking crime and a crime of violence. On October 16, 2013, he was sentenced to serve 210 months in federal prison.
Co-defendants Carey Jones, Bernell Williams, and China Stewart also pled guilty to various charges in the indictment and are scheduled to be sentenced on January 22, 2014.
Co-defendants Walter Conley and Norman Ratcliff also pled guilty to various charges in the indictment, including murder, and are scheduled to be sentenced on February 26, 2014.
“These two defendants were responsible for terrorizing the Hollygrove area by using shootings and even murder to protect their illegal drug trafficking enterprise,” stated U.S. Attorney Polite. “The lengthy sentences imposed today are reflective of the fact that our community is making every effort to remove these violent offenders from our streets.”
Mr. Polite thanked the federal agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) who took the lead role in this investigation and who have been steadfast in their resolve to bring these violent offenders to justice. He also thanked the other members of the MAG UNIT who worked on this case and renewed the USAO’s commitment to assist the MAG UNIT in targeting these types of violent offenders.
The Multi-Agency Gang Unit is an N.O.P.D. led division which includes federal agents from ATF, the Drug Enforcement Administration, the Federal Bureau of Investigation, and the U.S. Marshals Service, as well as participants from the Orleans Parish Sheriff’s Office, the Louisiana State Police, State Probation and Parole, and the New Orleans District Attorney’s Office.
The case is being prosecuted by Assistant United States Attorney Maurice E. Landrieu, Jr.
Former Motel Owner, Anil Patel, Sentenced for Tax FraudRead the Press Release
ANIL PATEL, age 47, formerly a resident of Metairie, Louisiana, was sentenced today by U.S. District Judge Sarah S. Vance to thirteen months incarceration, announced U. S. Attorney Kenneth A. Polite, Jr.
According to court documents, on August 6, 2009, PATEL signed and filed a 2008 U. S. Individual Income Tax Return (Form 1040) with the Internal Revenue Service. That tax return did not report approximately $426,744 in income, which resulted in $111,378 in tax due and owing to the Internal Revenue Service.
PATEL was the former owner of the Trade Winds and La Village motels that were located on Airline Drive in Metairie, Louisiana. As part of his plea agreement, PATEL agreed to accept responsibility for failing to report $1,373,076 in total unreported income for the tax years 2006 - 2009. As a result, the tax due and owing to the IRS for those years is $393,048. PATEL also previously agreed to pay taxes due and owing to both the parish and state.
“Those who cheat on their taxes impose an unfair burden on everyone else who dutifully pay their fair share,” stated U.S. Attorney Polite.
“Mr. Patel underreported his taxable income by over $425,000 in a single year”, stated Gabriel L. Grchan, Special Agent in Charge of Internal Revenue Service Criminal Investigations, “the agents of Criminal Investigation will continue to diligently pursue those individuals that evade their responsibility to accurately report their earnings and pay their fair share of taxes. We will continue to work with the United States Attorney Office, our federal, state and local law enforcement partners to ferret out those that fail to obey the law.”
U.S. Attorney Polite also acknowledges the outstanding job performed by the Jefferson Parish Sheriff’s Office and Special Agents of the Internal Revenue Service, Criminal Investigations.
The prosecution was handled by Assistant U. S. Attorney Jon Maestri.
Former Nopd Officer, Jason Cross, Pleads Guilty in Federal Court to Drug ChargesRead the Press Release
JASON CROSS, 35, a former New Orleans Police Officer, pled guilty this morning before U.S. District Judge Jane Triche Milazzo to a felony drug violation, announced U.S. Attorney Kenneth Allen Polite, Jr. CROSS was charged by a bill of information, with attempting to possess with the intent to distribute a quantity of cocaine hydrochloride. CROSS pled guilty pursuant to a written plea agreement and signed a factual basis which was placed in the court record.
CROSS faces a sentence of not more than 20 years in prison, a fine of not more than $1,000,000.00, and a three year term of supervised release. Sentencing is scheduled on March 27, 2014 at 10:00 a.m.
This case was investigated by the Federal Bureau of Investigations and was prosecuted by AUSA Jay Quinlan.
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Two New Orleans Police Officers Indicted in Theft and Bribery ConspiracyRead the Press Release
RAFAEL DOBARD, age 39, and QUINCY JONES, age 33, both New Orleans Police Department (N.O.P.D) narcotics detectives, were indicted today by a federal grand jury for charges of conspiracy, wire fraud, and theft and bribery concerning programs receiving federal funds, announced U. S. Attorney Kenneth Allen Polite, Jr.
According to the indictment, DOBARD and JONES conspired to enrich themselves and others by obtaining N.O.P.D. confidential informant funds by fraud, and by corruptly making payments to other officers in their unit. The indictment also states that DOBARD and JONES conspired to commit wire fraud by submitting N.O.P.D. timesheets for times during which they were working non-N.O.P.D. detail jobs.
DOBARD has served as an N.O.P.D. officer for eight years, and JONES has served for eleven years. Both officers were most recently assigned as detectives to NOPD’s Fourth District Narcotics Unit.
U. S. Attorney Kenneth Allen Polite, Jr., reiterated that, at this time, the charges in the indictment are merely charges, and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case has been investigated jointly by the Federal Bureau of Investigation and the N.O.P.D. Public Integrity Bureau, and will be prosecuted by Special Assistant United States Attorney Michael Redmann, who is assigned to the U.S. Attorney’s Office from the Orleans Parish District Attorney’s Office, and Assistant United States Attorney Mark Miller.
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Gretna Men Sentenced for Conspiracy to Commit BriberyRead the Press Release
ZUHAIR HAMED, age 51, and JIHAD HATEM HAMAD, age 27, both residents of Gretna, Louisiana, were sentenced yesterday by U. S. District Judge Eldon E. Fallon on their guilty pleas to Conspiracy to Bribe an Agent of Local Government in Connection with a Program Receiving Federal Funds, announced U. S. Attorney Kenneth Allen Polite, Jr. ZUHAIR HAMED was sentenced to twenty months imprisonment followed by three years of supervised release, and a fine of $3,000. JIHAD HAMAD was sentenced to six months imprisonment followed by six months of home confinement, three years of supervised release, 50 hours of community service, and a $100 special assessment.
According to court documents, HAMAD was the owner and operator of a convenience store located in Harahan, Louisiana. HAMAD was seeking a permit allowing the sale of wine and hard liquor at his store. HAMED assisted in the efforts of JIHAD HAMAD to obtain the liquor permit. The police chief of the City of Harahan repeatedly stated that he would oppose the issuance of such permit because the convenience store was located within 300 feet of a church, a prohibited distance under Louisiana law and Harahan city ordinance.In March 2012, HAMAD told the police chief that his father was a wealthy man who would be willing to make a contribution to the police chief’s political campaign in exchange for approval of a permit to sell wine and hard liquor at the convenience store. The police chief stated that he thought he knew HAMAD’s father, who had owned a convenience store on Martin Luther King Boulevard in New Orleans. HAMAD agreed that HAMED, in fact, was his father. However, the two men were not related.
Consequently, the police chief considered the offer to provide him with campaign contributions in return for the liquor permit to be an attempt to bribe him. Therefore, the police chief reported the matter to the Federal Bureau of Investigation, which initiated an investigation of the matter.
HAMED then met several times with the police chief, discussed the liquor permit, and offered payments in cash, by blank money order, or by business checks to the police chief’s campaign. In May and June of 2012, HAMAD gave HAMED $3,000 to be used to make payments to the police chief. HAMED then paid the police chief a total of $3,000 in two payments, one in cash, and one by means of a check drawn on the account of a business related to HAMED’s family member, on which check the payee was blank. He also agreed to make additional payments to the police chief in the future.
The case was investigated by the Federal Bureau of Investigation and the U. S. Attorney’s Office. The case was prosecuted by Executive Assistant U. S. Attorney Eileen Gleason.
Gang Member from Hollygrove Area, Theron Golston, Sentenced to Life in Prison on Federal Rico, Drug, and Murder ChargesRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that THERON GOLSTON, aka “Thema,” 23, a resident of New Orleans, was sentenced yesterday by U.S. District Judge Stanwood R. Duval, Jr. to serve the remainder of his life in prison for violating federal RICO, drug conspiracy, firearms conspiracy, and murder charges. GOLSTON was a member of a gang from the Hollygrove area of the city that was involved in several shootings and murders in recent years. To date, all of the indicted members of this gang have pled guilty. The remaining gang members are awaiting sentencing.
GOLSTON had previously pled guilty to participating in the murder of Aaron Allen on February 27, 2007 and to participating in the drive-by shooting that resulted in the murder of Ms. Eula Mae Ivey on June 14, 2010. He also admitted that he and the other gang members were street level dealers of crack cocaine.
A thirty-four count second superseding indictment was returned on November 16, 2012, charging Walter Conley, aka “Ike Neezy”, Tyronne Stevenson, aka “Duke”, THERON GOLSTON, aka “Thema”, Bernell Williams aka “Bussy”, aka “A-Boogie”, Norman Ratcliff, aka “Turk”, and Mark Glenn with participating in a RICO conspiracy, drug conspiracy, firearms conspiracy, and several substantive acts of violence.
Co-defendant Ryan Carroll, aka “Ronnie Boo,” pled guilty to participating in the RICO conspiracy and to discharging a firearm during a drug trafficking crime and a crime of violence. On October 16, 2013, he was sentenced to serve 210 months in federal prison.
Co-defendants Carey Jones, Bernell Williams, and China Stewart also pled guilty to various charges in the indictment and are scheduled to be sentenced on January 22, 2014.Co-defendants Tyronne Stevenson, Walter Conley, Norman Ratcliff, and Mark Glenn also pled guilty to various charges in the indictment and are scheduled to be sentenced on December 11, 2013.
Mr. Polite stated, “This is a clear example of how the federal government will target and convict the dangerous gang members that are responsible for numerous shootings in our community. The life sentence imposed on Mr. Goldston should put other gang members on notice that the Multi-Agency Gang Unit (‘MAG UNIT’) has the ability, the tools, and the knowledge to dismantle an entire criminal enterprise. This is the type of effort that the federal government will continue to put forward to combat violent crime.”
Mr. Polite thanked the federal agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (A.T.F.) who took the lead role in this investigation and who have been steadfast in their resolve to bring these violent offenders to justice. He also thanked the other members of the MAG UNIT who worked on this case and renewed the USAO’s commitment to assist the MAG UNIT in targeting these types of violent offenders.
The Multi-Agency Gang Unit is an N.O.P.D. led division which includes federal agents from A.T.F., the Drug Enforcement Administration, the Federal Bureau of Investigation, and the U.S. Marshals Service, as well as participants from the Orleans Parish Sheriff’s Office, the Louisiana State Police, State Probation and Parole, and the New Orleans District Attorney’s Office.
The case is being prosecuted by Assistant United States Maurice E. Landrieu, Jr.
Raceland Man, Ronald Breaux, Sentenced to 151 Months for Distributing Child PornographyRead the Press Release
RONALD BREAUX, age 66, of Raceland, Louisiana, was sentenced yesterday by United States District Judge Nannette Jolivette Brown to 151 months in prison for crimes involving the sexual exploitation of children, announced United States Attorney Kenneth Allen Polite, Jr. Judge Brown also ordered the defendant to pay $1,750 to one of the victims whose images he downloaded. After his term of imprisonment BREAUX will be placed on supervised release for five years.
According to court documents, BREAUX used “peer-to-peer” file sharing programs on his computer to search for, download, and share videos and images of children as young as eighteen (18)-months-old engaging in sexually explicit conduct. On September 25, 2012, law enforcement officials, led by the State of Louisiana Department of Justice - Office of the Attorney General, executed a search warrant at BREAUX’S residence and seized two computers and five electronic storage devices. BREAUX catalogued the pictures and videos in computer folders he created with names like “young,” “crime,” and “incest. In total, BREAUX downloaded, viewed, and saved at least 1,485 images and 479 videos of children being victimized.
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 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 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, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by agents from the State of Louisiana - Office of the Attorney General. The prosecution of this case was handled by Assistant United States Attorneys Jordan Ginsberg and Matthew S. Chester.Former Jefferson Parish Sheriff's Deputy, Mark Hebert, Pleads Guilty to Civil Rights, Bank Fraud and Aggravated Identity Theft ViolationsRead the Press Release
Former Jefferson Parish Sheriff’s Deputy MARK HEBERT, 48, pled guilty today to one civil rights violation, five bank fraud violations and one aggravated identity theft violation, announced Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division, U.S. Attorney Kenneth A. Polite Jr. for the Eastern District of Louisiana, Special Agent in Charge Michael J. Anderson of the FBI New Orleans Field Office and Sheriff Newell Normand from the Jefferson Parish Sheriff’s Office.
According to the plea agreement and other documents, HEBERT engaged in a scheme to defraud J.P. Morgan Chase Bank (Chase Bank) from Aug. 2, 2007 through Nov. 21, 2007. The scheme began when HEBERT, in his capacity as a Jefferson Parish Sheriff’s Deputy, responded to an automobile accident involving Albert Bloch and stole Bloch’s VISA debit card, as well as other items. While Bloch was hospitalized following the accident, HEBERT used that debit card to make unauthorized purchases of merchandise, including two Global Positioning System units, and to withdraw funds from Bloch’s Chase Bank account via Automatic Teller Machines (ATMs). After Chase Bank cancelled the debit card due to Bloch filing a dispute with the bank, HEBERT continued his scheme to defraud by negotiating and attempting to negotiate forged checks drawn from Bloch’s account. HEBERT then obtained the replacement debit card sent to Bloch and used that card to make further unauthorized transactions at Chase Bank ATMs. Bloch has not been seen since 2007.
By pleading guilty, HEBERT admitted that he violated Bloch’s civil rights when he responded in his official capacity to Bloch’s automobile accident and unreasonably seized and converted Bloch’s property, including funds that Bloch had on deposit with Chase Bank. HEBERT also admitted that on at least five occasions he executed his bank fraud scheme against Chase Bank by unlawfully using Bloch’s original ATM card, replacement ATM card and Chase Bank checks. In addition, HEBERT admitted that on at least one occasion he used Bloch’s driver’s license number and social security number in order to execute his bank fraud scheme and thereby committed aggravated identity theft.
“When the defendant officer responded to an automobile accident and stole the victim’s credit cards and used them to commit fraud, he violated not only the law, but the core law enforcement values of trust and respect for civil rights,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Civil Rights Division will continue to work with our partners in the U.S. Attorney Offices and FBI to ensure that civil rights violations are identified and where appropriate prosecuted.”
“Mark Hebert’s guilty plea occurred as a result of the successful collaboration of local and state law enforcement agencies in our continued fight to eradicate corruption in our community,” said U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana. “The U.S. Attorney’s Office and its law enforcement partners are delivering the same message in a unified voice: we will not tolerate abuse of power and official position. If you violate the public trust in Southeast Louisiana, you will be held accountable.”
“In as much as I am very disappointed in the behavior of former JPSO officer Mark Hebert as outlined in his guilty plea today, I am extremely proud of the persistence of my criminal investigators and the efforts of the U. S. Attorney's Office in this investigation,” stated Jefferson Parish Sheriff Newell Normand. “My office will not tolerate any form of corruption.”
A sentencing hearing has been scheduled before the Honorable Jane Triche-Milazzo on March 24, 2014. For each of the five counts of bank fraud, HEBERT faces a maximum statutory sentence of 30 years in prison and a $1,000,000 fine. For the count of aggravated identity theft, HEBERT faces a maximum statutory sentence of two years in prison and a $250,000 fine. For the count charging a civil rights violation, HEBERT faces a maximum statutory penalty of one year in prison and a $100,000 fine.
The investigation of this matter was conducted by the Jefferson Parish Sheriff’s Office Detective’s Bureau and the FBI. The case is being prosecuted by Assistant U.S. Attorney Steve Parker, Assistant U.S. Attorney Tony Sanders and Civil Rights Division Trial Attorney Shan Patel.
Brothers Plead Guilty to Federal Murder ChargesRead the Press Release
ANTOINE BROOKS, age 23, DON BROOKS, a/k/a “Crip,” age 21, both of New Orleans, Louisiana, pled guilty yesterday before U.S. District Judge Lance M. Africk to violations of the Federal Gun Control Act, announced U.S. Attorney Kenneth Allen Polite, Jr.
ANTOINE BROOKS pled guilty to using a firearm to murder Tamira Johnson on September 23, 2011. DON BROOKS pled guilty to using a firearm to murder Tamira Johnson on September 23, 2011; Harry Howard on January 1, 2012; and Lamont Phillips on January 4, 2012. Pursuant to their 11(c)(1)(C) plea agreements with the government, which the Court may accept or reject, ANTOINE BROOKS will be sentenced to a term of imprisonment of 25 years and DON BROOKS will be sentenced to a term of imprisonment of 20 years for each murder, to be served consecutively, for a total of 60 years imprisonment.
According to court documents, the defendants admitted that on September 23, 2011, they were driving in New Orleans looking for Roosevelt Rumbley, a rival drug dealer with whom they had an ongoing drug feud, in order to kill him. As ANTOINE and DON BROOKS approached Rumbley, ANTOINE BROOKS reached out of the car window holding a .40 caliber handgun and began shooting. Rumbley shot in the hand (and survived), but Tamira Johnson, who was coincidentally walking on the street near Rumbley, was also shot and died.DON BROOKS admitted that on January 1, 2012, he murdered Harry Howard during the course of a drug transaction. DON BROOKS further admitted that on January 7, 2012, he attempted to kill an individual who was seen talking with the police about the Howard murder.
DON BROOKS also admitted that on January 4, 2012, he murdered Lamont Phillips in front of his residence in New Orleans during the course of a drug transaction. According to a cooperating witness who was with Phillips just before the murder, Phillips engaged in a cellphone conversation with an individual he/she knew as “Crip” discussing making a drug deal. After the cell phone conversation, Phillips retrieved the drugs “Crip” requested from his house. Phillips then left to conduct the deal with “Crip.” The witness then heard numerous gunshots, looked out the window, and saw Phillips lying in street. According to the responding NOPD officers and other cooperating individuals, Phillips made a dying declaration that “Crip did me” just before expiring.
The case was investigated by the Drug Enforcement Administration and the New Orleans Police Department. The prosecution was handled by Assistant United States Attorney Sean Toomey.
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Florida Man, George Potter, Pleads Guilty to Distribution of Child PornographyRead the Press Release
GEORGE POTTER, 27, of Gulf Breeze, Florida, pled guilty today before U.S. District Judge Martin L.C. Feldman to crimes involving the sexual exploitation of children, announced U.S. Attorney Kenneth Allen Polite, Jr.
According to court documents, following an investigation by the Louisiana State Police and the U. S. Department of Homeland Security, Homeland Security Investigations (HSI), POTTER was indicted by a federal grand jury on June 20, 2013 for Distribution of Child Pornography.
POTTER will be sentenced on February 26, 2014 and faces a mandatory minimum penalty of five (5) years and a maximum penalty of twenty (20) years, followed by up to a lifetime term of supervised release, and a $250,000.00 fine.
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 investigated by special agents from the U. S. Department of Homeland Security, Homeland Security Investigations and the Louisiana State Police. The prosecution of this case is being handled by Strike Force Chief and Project Safe Childhood Coordinator, Assistant U.S. Attorney Brian M. Klebba.
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Helmerich & Payne International Drilling Company Sentenced to $6.4 Million Criminal Penalty for False Writings Related to Well Control TestingRead the Press Release
HELMERICH & PAYNE INTERNATIONAL DRILLING COMPANY (“H&PIDC”), a corporation headquartered in Tulsa, Oklahoma, pleaded guilty today before the Honorable Magistrate Judge Sally Shushan to one count of violating Title 18, United States Code, Section 1018 which charged the drilling company with knowingly making and delivering false writings in connection with the company’s drilling activities in Gulf of Mexico. Pursuant to a plea agreement with the United States Attorney’s Office for the Eastern District of Louisiana, H&PIDC was sentenced today to pay a total monetary penalty of $6.4 million and placed on a three year term of probation during which it must institute and comply with an environmental compliance plan that incorporates increased well control monitoring and enhanced training for all their offshore drilling rig employees.
According to the court documents, from on or about October 14, 2009 until on or about May 27, 2010, H&PIDC owned and operated drilling Rig 206. Rig 206 was contracted by the lessee of a federal mineral lease to conduct oil drilling operations on MC 109 in the Gulf of Mexico. As mandated by federal regulation, Rig 206 was equipped with a safety device known as a blowout preventer system designed to ensure well control and prevent potential release of oil and gas and possible loss of well control. The blowout preventer system consisted of multiple components including a blowout preventer, choke and kill lines, and a choke manifold. The choke manifold was an arrangement of piping and valves designed to direct flow and control pressure from the well. As mandated by federal regulation, the blowout preventer system must be routinely pressure tested, and the entire system must pass the pressure test prior to continuing drilling operations. The requirements for testing the blowout preventer system include conducting pressure tests of the choke manifold valves.
On six occasions from on or about January 1, 2010 until May 27, 2010, five H&PIDC employees had deliberately not tested a number of valves on the choke manifold because they knew or believed that certain valves would leak. H&PIDC employees on Rig 206 deliberately created false blow out preventer test charts and pressure charts by closing manifold valves behind the ones they knew or believed would leak. When inspectors arrived onboard Rig 206 for inspections to include verifying that the blowout preventer system had been properly tested, the crew provided them with the falsified test charts and pressure charts. The former H&PIDC employees falsified the testing records for the benefit of the defendant, H&PIDC, to minimize downtime and costs associated with repairs.
Within 24 hours of notification that an employee on Rig 206 had deliberately falsified choke manifold tests by closing choke manifold valves behind other choke manifold valves that they knew or believed would leak, executives at H&PIDC notified the leaseholder and requested that the leaseholder notify personnel at the agency now known as BSEE that persons on Rig 206 had falsified the choke manifold tests by falsely reporting that every valve on the choke manifold was successfully pressure tested. After an internal investigation, H&PIDC terminated four of the H&PIDC employees who participated in the test falsification and demoted the one H&PIDC employee involved in the falsification who reported the conduct to the company.
Of the 6.4 million dollar criminal penalty, one million dollars is designated to go to the National Academy of Sciences as a community service payment for funding research to identify options to improve and promote offshore industry safety culture. During the three year term of probation, H&PIDC is subject to an environmental compliance plan (“ECP”). The ECP requires that H&PIDC develop and implement training and safety culture programs and requires, inter alia, the company to review their offshore drilling contracts as they relate to downtime and the costs associated with downtime, and implement well control equipment testing improvement solutions such as third party inspections of well control testing on H&PIDC offshore rigs.
The Director of the Bureau of Safety and Environmental Enforcement, Brian Salerno, praised DOJ's actions, stating, "the safety of offshore workers and the environment is dependent on the integrity of the safety and control equipment. Companies need to be on notice that falsification of test results will not be tolerated. "
The case was investigated by the Department of Interior-Office of Inspector General. The case was prosecuted by Assistant United States Attorney Emily K. Greenfield. The U. S. Attorney’s Office would also like to acknowledge the assistance provided by the Bureau of Safety and Environmental Enforcement’s New Orleans District.
Eight Individuals Indicted for Crimes Involving the Sexual Victimization of ChildrenRead the Press Release
Today, U.S. Attorney Kenneth Allen Polite, Jr. announced that a Federal Grand Jury handed down indictments charging the following eight (8) individuals with crimes involving the sexual exploitation of children:
DANIEL NOLAN DEVOR, age 39, of Brunswick, Georgia;
JOHN C. FOSTER, age 44, of Tipp City, Ohio;
AUNG GAW, a/k/a Michael Gaw, age 25, of Fremont, California;
SEAN JABBAR, age 32, of Minneapolis, Minnesota;
CHRISTOPHER JAMIESON, age 30, of Douglasville, Georgia;
ANDREW J. KORPAL, age 29, of Granger, Indiana;
NICHOLAS SAINE, age 27, of Seattle, Washington; and
STANLEY ZDON, III, age 27, of Tuckerton, New Jersey.
DEVOR and FOSTER were charged with Distribution and Receipt of Child Pornography which each carry a mandatory minimum sentence of five (5) years and a maximum sentence of twenty (20) years. GAW, JABBAR, JAMIESON, KORPAL, SAINE, and ZDON were charged with Receipt of Child Pornography which carries a mandatory minimum sentence of five (5) years and a maximum sentence of twenty (20) years. In addition, each defendant will be placed on a term of supervised release after imprisonment for a minimum of five (5) years up to life. If convicted, each defendant will have to register as a sex offender.“These indictments represent a strong coordinated strike – by Homeland Security, the U.S. Postal Inspection Service, and several U. S. Attorney’s Offices around the country – against child pornography and those who allegedly seek to harm our most vulnerable citizens, our young children,” stated U. S. Attorney Kenneth Allen Polite, Jr.
“Child sexual predators cause significant harm to our society by inflicting horrific abuse on innocent children,” said HSI New Orleans Special Agent in Charge Raymond R. Parmer Jr. "Predators do all they can to hide their online actions, but these arrests show that in even the darkest corners of the Internet, HSI and its law enforcement partners will investigate and seek prosecution wherever these criminals may be found.” Parmer oversees a five-state region including Louisiana, Alabama, Arkansas, Mississippi and Tennessee.
“Postal Inspectors investigate a wide variety of crime in our mission to protect the integrity of the U.S. Mail, but sexual exploitation of children is particularly heinous,” said U.S. Postal Inspection Service Inspector in Charge Robert Wemyss. “When these predators use a combination of mail and the Internet, we appreciate partnering with other law enforcement partners such as HSI to ensure no aspect of their crimes escape justice.”
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 reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations and the U.S. Postal Inspection Service. The prosecution of this case is being handled by Strike Force Chief and Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
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Turkish National, Giray Biyiklioglu, Convicted of Wire Fraud, Aggravated Identity Theft, Tax, and Money Laundering ChargesRead the Press Release
GIRAY BIYIKLIOGLU, aka “Johnny Bryan,”, age 30, a Turkish national and resident of New Orleans, was convicted yesterday in federal court of 40 counts of wire fraud, aggravated identity thefts, tax fraud and money laundering, announced U.S. Attorney Kenneth Allen Polite, Jr.
According to court documents and the court 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 stemmed from the BIYIKLIOGLU’s use of the personal information of six victims in furtherance of his wire fraud scheme. The defendant was also convicted of two counts of tax evasion for tax years 2010 and 2011. The jury convicted BIYIKLIOGLU of money laundering for using fraud proceeds to purchase a several motorcycles and a jet ski. Finally, BIYIKLIOGLU was convicted of thirteen counts of money laundering for concealing the proceeds of the wire fraud scheme and two counts of money laundering for wiring fraud proceeds to a bank in Turkey.
“Biyiklioglu stole the identities of innocent victims to finance his own lavish lifestyle,” stated U.S. Attorney Kenneth Allen Polite, Jr. “Yesterday’s jury verdict ensures that he will be brought to justice for defrauding these individuals and several financial institutions as part of his scheme.”
“Individuals who use stolen identities to commit crimes must be prosecuted for their actions,” stated Gabriel Grchan, Special Agent in Charge, IRS Criminal Investigation. “We thank the jury for their service during this trial and promise that IRS-CI will continue to work with the Department of Justice to stop identity theft.”
BIYIKLIOGLU faces the following terms of imprisonment:
- Counts 1-13 (wire fraud) – maximum term of 20 years imprisonment per count;
- Counts 14-20 (aggravated identity theft) – mandatory term of 2 years imprisonment per count, to be served consecutively;
- Counts 21-22 (tax evasion) – maximum term of 5 years imprisonment per count; and
- Count 23-25 and 27-41 (money laundering) – maximum term of 20 years imprisonment per count.
The jury also ordered BIYIKLIOGLU to forfeit bank accounts worth $85,919.77, a Ducati Diavel motorcycle, a Kawasaki jet ski and a jet ski trailer. Sentencing is scheduled for February 25, 2014, before U.S. District Judge Jay C. Zainey.
The case was investigated by Special Agents of the United States Secret Service and Internal Revenue Service, Criminal Investigation. The case was prosecuted by Assistant U. S. Attorneys Dorothy Manning Taylor and Chandra Menon and Trial Attorney Hayden Brockett of the U.S. Department of Justice, Tax Division.
Former New Orleans Traffic Court Accountant, Vandale Thomas, IndictedRead the Press Release
VANDALE THOMAS, age 40, a resident of Prairieville, Louisiana, was charged today by a Federal Grand Jury in a twelve (12) count Indictment alleging corruption which took place during THOMAS’s tenure with New Orleans Traffic Court, announced U. S. Attorney Kenneth Allen Polite, Jr.
On November 24, 2008, THOMAS and his accounting firm, Thomas & Thomas Accounting Services, LLC, were hired by the City of New Orleans Traffic Court to provide accounting and bookkeeping services. THOMAS was the Chief Financial Officer for Traffic Court and for the time period alleged in the indictment. THOMAS’s initial agreement with Traffic Court allowed him to bill at a rate of $75.00 an hour and his contract was not to exceed $75,000.00 for a twelve (12) month period. THOMAS’s billings exceeded $75,000.00 within the first four months of his agreement.
On six (6) additional occasions between November 24, 2008 and April 13, 2011, THOMAS received written authorization from the City of New Orleans and Traffic Court to expand the amount that he could bill. In total, the City and Traffic Court authorized THOMAS to submit invoices and receive compensation for accounting services in an amount not to exceed $627,000.00. However, subsequent audits by investigators and the FBI revealed that THOMAS submitted 174 invoices and was issued 173 checks totaling $1,311,065.53. According to today’s Indictment, THOMAS embezzled and overbilled the City of New Orleans and its department, Traffic Court, more than $680,000.00 between 2009 - 2011.
Today’s Indictment also charges THOMAS with three (3) separate counts of laundering illegal funds obtained from Traffic Court. Two counts allege that on September 14 and September 24, 2010, THOMAS used illegally obtained money from Traffic Court to purchase casino chips in excess of $10,000 at a New Orleans casino. The third money laundering count alleges THOMAS used illegally obtained money from Traffic Court to make a down payment on an $80,000 Bentley GT Coupe.
The structuring counts in today’s Indictment allege that THOMAS used numerous bank branches in order to evade federal currency transaction reporting requirements. Specifically, THOMAS went to multiple bank locations in New Orleans and Baton Rouge to structure cash withdrawals in order to evade the currency transaction reporting requirement that all transactions over $10,000 be reported by financial institutions to the Internal Revenue Service.
Counts 1 through 3 of the Indictment charge THOMAS with theft concerning programs receiving federal funds in violation of Title 18, United States Code, Section 666(a)(1)(A). The maximum penalty THOMAS may receive if convicted of Counts 1 through 3 is ten (10) years imprisonment per count. Counts 4 through 6 of the Indictment charge THOMAS with engaging in monetary transactions in property derived from specified unlawful activity in violation of Title 18, United States Code, Section 1957. The maximum penalty for each of these counts is ten (10) years imprisonment. Counts 7 through 12 of the Indictment charge THOMAS with structuring transactions to evade reporting requirements in violation of Title 31, United States Code, Section 5324(a)(3). The maximum penalty for each of these counts is five (5) years imprisonment.
“This indictment represents another example of our region’s coordinated efforts to root out public corruption,” stated U.S. Attorney Kenneth Allen Polite, Jr. “We will hold accountable anyone who allegedly defrauds our government.”
“We all suffer when our state and local municipalities are robbed by fraud,” stated IRS-CI Special Agent in Charge, Gabriel Grchan. “Today’s indictment of Vandale Thomas should send a clear message that we intend to stop public corruption in the city of New Orleans. It is the goal of IRS Criminal Investigation to work with Department of Justice and other Federal and State agencies to ensure that those engaged in illegal activities are brought to justice.”
“Today’s indictment is another example of the close relationship between the Office of Inspector General and our federal partners,” stated Ed Quatrevaux, Inspector General for the City of New Orleans. “The OIG will continue to pursue those who defraud the City of New Orleans.”
U.S. Attorney Kenneth Allen Polite, Jr. 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 Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations Division, and the New Orleans Office of Inspector General. The prosecution of this case is being handled by Strike Force Chief, Assistant U. S. Attorney Brian M. Klebba.
(Download Indictment )
New Orleans Man, Christopher M. Schwab, Charged with Producing and Distributing Child PornographyRead the Press Release
CHRISTOPHER M. SCHWAB, age 24, a resident of New Orleans, Louisiana, was charged yesterday in a Bill of Information with multiple counts of production of materials involving the sexual exploitation of children, distribution of child pornography, and receipt of child pornography, announced U. S. Attorney Kenneth Allen Polite, Jr.
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.
Yesterday’s Bill of Information charges SCHWAB with four (4) counts of child pornography involving four different minor victims. In addition, SCHWAB was charged with one count of distributing child pornography and one count of receiving child pornography.
Production of child pornography carries a mandatory minimum sentence of fifteen (15) years and a maximum sentence of thirty (30) years. Distribution and receipt of child pornography carry a mandatory minimum sentence of five (5) years and a maximum sentence of twenty (20) years. If convicted, SCHWAB will have to register has a sex offender.
U.S. Attorney Kenneth Allen Polite, Jr. 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 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 United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by Homeland Security Investigations. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Strike Force Chief, Assistant U. S. Attorney Brian M. Klebba.
(Download Bill of Information )
United States Attorney's Office<br /> Is Now on TwitterRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Louisiana has opened a Twitter account to assist in providing the citizens in our communities with information about news, events, and special announcements through this social media channel, announced U.S. Attorney Kenneth Allen Polite, Jr.
“We want to use social media in a responsible fashion to ensure that justice reaches all citizens of Southeast Louisiana,” Polite said. “The Office’s Twitter account will help inform the public about the work we are doing with taxpayer dollars. Further, increased awareness of our efforts will have a deterrent effect on crime.”
To follow us on Twitter, go to http://twitter.com/EDLAnews, or add our Twitter address, @EDLAnews, to your smartphone Twitter app. In addition to Twitter, the U.S. Attorney’s Office also maintains a website that is the primary source of information relating to all functions of the office. Please visit us at http://www.justice.gov/usao/lae.
Night Out on Crime AddressRead the Press Release
US Attorney Polite addresses attendees at last night’s Night Out On Crime Event with Mayor Landrieu and other community leaders.
Night Out on CrimeRead the Press Release
Mr. Aaron Daste, Dr. Gail Armant Lemelle, US Attny Polite, and Mr. Aaron McDonald at Night Out On Crime event in New Orleans, Louisisana.
Louisiana Sergeant Gary J. Shine Pleads Guilty to Assault of DetaineeRead the Press Release
The Justice Department announced that former Jefferson Parish, La. Sheriff’s Office Sergeant Gary J. Shine pleaded guilty today before Federal District Court Judge Ivan L.R. Lemelle to assaulting a detainee at the Jefferson Parish Correctional Center in Gretna, La., thereby depriving the detainee of his civil rights.
During the plea hearing, Shine admitted that on Oct. 21, 2012, while he was working as a sergeant, he struck an inmate with his knee, while the inmate’s hands were cuffed behind his back. Shine admitted that he also punched the inmate in the head. Shine’s actions caused bruising. Shine acknowledged that the inmate did not pose a threat to Shine or any other person, and that there was no legal justification for Shine to strike the inmate.
“It is a federal crime for law enforcement officers to willfully use excessive force,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “Today’s guilty plea demonstrates the Justice Department’s commitment to ensuring that official misconduct is addressed fully and fairly.”
“The vast majority of our law enforcement officials serve with honor and integrity,” said Kenneth Polite, U.S. Attorney for the Eastern District of Louisiana. “However, when someone abuses the power and privileges of his office, as Gary Shine did here, he will be held accountable.”
At sentencing, which is set for Jan. 22, 2014, Shine faces a statutory maximum sentence of 10 years of incarceration.
This case was investigated by the FBI and was prosecuted by Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Stephen C. Parker for the Eastern District of Louisiana.
Former St. Tammany Coroner Peter Galvan Pleads Guilty to Conspiracy to Steal Funds from Coroner's OfficeRead the Press Release
PETER GALVAN, 54, a resident of St. Tammany Parish, and the former St. Tammany Parish Coroner, pled guilty today to one count of conspiring to steal government funds from the St. Tammany Parish Coroner’s Office, announced U.S. Attorney Kenneth Allen Polite, Jr.
U.S. Attorney Polite stated: “Today’s guilty plea ensures that Peter Galvan will be punished for abusing the public trust for his personal gain.”
Special Agent in Charge of the Federal Bureau of Investigation, New Orleans Field Office, Michael Anderson stated: "This conviction clearly highlights the significant importance of the continuous engagement of the local citizenry to support law enforcement's priority mission to address fraud, corruption and betrayals of public trust."
Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Gabriel Grchan stated: “We have worked hard with our federal partners to obtain the guilty plea entered today by Peter Galvan. IRS Criminal Investigation is committed to pursuing the prosecution of public officers who misuse taxpayer dollars for their personal gain.”
According to the Factual Basis, the Bill of Information to which GALVAN pled guilty, and other documents filed in federal court:
GALVAN, a former elected official, earned annual or sick leave to which he was not entitled. However, with the assistance of another coroner’s office employee, GALVAN received yearly payments for unused annual and sick leave, totaling $111,376 over a five year period.
GALVAN, as a physician, individually contracted with the City of Slidell, Louisiana to provide medical services for inmates of the Slidell City Jail. The contract was not with the St. Tammany Parish Coroner’s Office, but with GALVAN personally. However, GALVAN conspired with another individual employed with the St. Tammany Parish Coroner’s Office to service this contract while the other individual was supposed to be working for and was being paid by the St. Tammany Parish Coroner’s Office. The Coroner’s Office employee was paid at least $50,000 in public funds to fulfill GALVAN’s personal contract.
Additionally, GALVAN conspired with another employee of the coroner’s office to purchase a $9,170 generator for GALVAN’s personal vessel, a life raft and life jackets for his personal vessel valued at $4,841, and a Global Positioning Satellite Receiver for his personal use valued at $2,395, all with St. Tammany Parish Coroner’s Office funds.
Finally, GALVAN used his St. Tammany Parish Coroner’s Office credit card to make purchases of meals and other personal items with his public credit card totaling $15,606 which were unrelated to the office’s business.
GALVAN faces a statutory maximum of five years in jail, a $250,000 fine and restitution of twice his gain or twice the victims’ loss, whichever is greater. He is scheduled for sentencing on January 29, 2014 by U.S. District Court Judge Susie Morgan.
The investigation of the St. Tammany Coroner’s Office is continuing.
Mr. Polite praised the investigative work of the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, and the State of Louisiana Legislative Auditor.
The case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Carter K. D. Guice, Jr. and Chandra Menon are in charge of the prosecution.
(Download Factual Basis )
Mail-order Diabetic Supply Company and Its Owners Resolve Allegations of Civil and Criminal Fraud Arising from Kickback PaymentsRead the Press Release
The owners of Kansas-based Global Medical Direct, LLC and Global Medical Inc., Robert Shea and Mark Franz, have agreed to pay $7 million to resolve allegations against them in connection with a scheme to submit false claims to the federal Medicare and Tricare healthcare programs, announced United States Attorney Kenneth Allen Polite, Jr. from the Eastern District of Louisiana along with United States Attorney Barry Grissom, from the District of Kansas. The companies have also agreed to pay to the United States $5 million in proceeds from the sale of all of the companies’ assets to settle civil allegations under the False Claims Act. Shea and Franz will also receive twenty-year exclusions from participation in any federal healthcare program as part of the settlement.
Global Medical, Inc. and its parent company, Global Medical Direct, LLC, are mail-order diabetic supply companies. The United States contends that, between April 1, 2008 and January 31, 2012, owners Robert Shea and Mark Franz caused Global Medical and Global Medical Direct to enter into numerous marketing contracts with insurance brokerage and other companies with customer bases likely to have a high percentage of diabetes patients and paid these companies based on the number of patients referred for diabetic supplies. The Anti-Kickback Statute makes it unlawful to pay or receive remuneration for patient referrals because of the high-potential for billing abuse to Federal programs, such as Medicare, resulting from these types of arrangements.
The settlement resolves the companies’ and its owners’ civil and criminal liability for their participation in the wrongdoing.
The investigation and prosecution of the companies and their owners was conducted jointly by the U. S. Attorney’s Offices for the District of Kansas and the Eastern District of Louisiana, the Office of the Inspector General for the Department of Health and Human Services, and the Federal Bureau of Investigation.
“This joint effort sends a strong message to those that would abuse federally-funded healthcare programs – we will employ all available avenues to punish those that take advantage of the system,” said Kenneth Polite, U. S. Attorney for the Eastern District of Louisiana.
“We are happy to partner with our sister districts to insure that fraud, waste and abuse are discovered and punished wherever found,” said Barry Grissom, U. S. Attorney for the District of Kansas.
"Patients have a right to expect that medical suppliers have justly earned the opportunity to win government business," said Mike Fields, Special Agent in Charge, Office of Inspector General, U.S. Department of Health and Human Services, of the region including Louisiana. "Besides the dollar settlement, two of Global's owners are now banned from government health programs for at least the next two decades."
St. Tammany Coroner, Peter Galvan, Charged with Conspiracy to Steal Funds from Coroner’s OfficeRead the Press Release
PETER GALVAN, 54, a resident of St. Tammany Parish, and the elected St. Tammany Parish Coroner, was charged today in a bill of information with conspiring with two other individuals to steal money from the St. Tammany Coroner’s Office, announced U. S. Attorney Kenneth Allen Polite, Jr.
The bill of information charges that as an elected official, GALVAN did not earn annual or sick leave. However, with the assistance of another coroner’s office employee, GALVAN received yearly payments for unused annual and sick leave, totaling $111,376 over a five year period.
GALVAN, as a physician, individually contracted with the City of Slidell, Louisiana to provide medical services for inmates of the Slidell City Jail. The contract was not with the St. Tammany Parish Coroner’s Office, but with GALVAN personally. However, GALVAN conspired with another individual employed with the St. Tammany Parish Coroner’s Office to service this contract while the other individual was supposed to be working for and was being paid by the St. Tammany Parish Coroner’s Office. The Bill of Information charges that the Coroner’s Office employee was paid at least $50,000 in public funds to fulfill GALVAN’s personal contract.
Additionally, GALVAN conspired with an employee of the coroner’s office to purchase a $9,170 generator for GALVAN’s personal vessel, a life raft and life jackets for his personal vessel valued at $4,841, and a Global Positioning Satellite for his personal use valued at $2,395, all with St. Tammany Parish Coroner’s Office funds.
Finally, the Bill of Information alleges that GALVAN used his St. Tammany Parish Coroner’s Office credit card to make purchases of meals and other personal items with his public credit card totaling $15,606 which were unrelated to the office’s business.
If he is convicted, GALVAN faces a statutory maximum of five years in jail, a $250,000 fine and restitution.
U.S. Attorney Kenneth Allen Polite, Jr. reiterated that a Bill of Information is simply an allegation and that Dr. GALVAN is presumed to be innocent and he noted the investigation of the operation and personnel employed by the St. Tammany Coroner’s Office is continuing.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service, Criminal Investigation Division, and the State of Louisiana Legislative Auditor. The case is being prosecuted by Assistant United States Attorneys Carter K. D. Guice, Jr. and Chandra Menon.
(Download Bill of Information )
Gang Indictment Unsealed Charging Seven Defendants from the East Hollygrove Neighborhood with Federal Murder, Drug, and Firearms ViolationsRead the Press Release
Yesterday, the United States Attorney’s Office unsealed another gang indictment which was returned by the Federal Grand Jury on Friday October 4, 2013 and placed under seal. This Second Superseding Indictment charges seven members of the East Hollygrove neighborhood with 25 counts of violations of the Federal Controlled Substances Act, the Federal Gun Control Act, and murder, announced U. S. Attorney Kenneth Allen Polite, Jr.
CHARLES JOHNSON, aka “Chuck”, 25; ROBERT JOHNSON, aka “Skinny”, 24; THOMAS HENDERSON, aka “T”, 24; LAVELL STOVAL, aka “Vell”, 21; WILLIAM HENDERSON, aka “Will”, 20; ERSKINE WATERS, 22; and AVIAN BRULE, aka “Ave”, 20; all from New Orleans, were charged in this case. All of the defendants are charged with conspiracy to distribute one kilogram or more of heroin and a quantity of cocaine base. Each defendant faces a minimum sentence of 10 years to life in prison, a fine of not more than $10,000,000, and a minimum of five years of supervised release.
All of the defendants are also charged with using firearms in furtherance of drug trafficking crimes. Each faces up to 20 years in prison, a fine of $250,000, and three years of supervised release.
In addition to the first two charges, the following defendants face additional charges outlined below:
CHARLES JOHNSON is charged in Count 3 with participating in the murder of Ms. Eula Mae Ivey on June 14, 2010 as a result of a drive by shooting. Three other gang members have already pled guilty to participating in this murder in federal court. If convicted of this count, CHARLES JOHNSON faces a sentence of up to life in prison or the death penalty. CHARLES JOHNSON is also charged in Counts 6, 10, and 11 with distribution of heroin. He faces a sentence of not more than 20 years in prison, $1,000,000 fine and at least 3 years of supervised release, for each of these counts. Additionally, CHARLES JOHNSON is charged in Count 7 with possession of a firearm in furtherance of a drug trafficking crime for which he faces a minimum sentence of 5 years to a maximum of life imprisonment, $250,000, and 5 years of supervised release. Finally, he is charged in Count 8 with being a felon in possession of a firearm for which he faces not more than 10 years in prison, a fine of $250,000, and three years of supervised release.
THOMAS HENDERSON is charged in Count 4 with possession with the intent to distribute 28 grams or more of cocaine base. If convicted he faces a minimum of 5 years to a maximum of 40 years in prison, $5,000,000 and at least 4 years of supervised release. HENDERSON is also charged in Counts 17, 18, 19, and 20 with distribution of heroin. For each count he faces a sentence of up to 20 years in prison, $1,000,000 fine and at least 3 years of supervised release.
LAVELL STOVAL is charged in Count 5 with distribution of heroin for which he faces a sentence of up to 20 years in prison, $1,000,000 fine and at least 3 years of supervised release.
WILLIAM HENDERSON is also charged in Counts 12, 13, 14, 15, 16, 21, 22, 23, and 24 with distribution and possession with the intent to distribute heroin. He faces a sentence of up to 20 years in prison, $1,000,000 fine, and at least 3 years of supervised release, as to each count. He is also charged in Count 25 with possession of a firearm in furtherance of his drug trafficking activities for which he faces a minimum sentence of 5 years to a maximum sentence of life imprisonment, $250,000 fine, and 5 years of supervised release.
ERSKIN WATERS is charged in Count 9 with possession with the intent to distribute heroin. He faces a sentence of up to 20 years in prison, $1,000,000 fine and at least 3 years of supervised release.
AVIAN BRULE is charged in Counts 12 and 24 with distribution and possession with the intent to distribute heroin and faces a sentence of up to 20 years in prison, $1,000,000 fine and at least 3 years of supervised release, for each count. BRULE is also charged in Count 25 with possession of a firearm in furtherance of his drug trafficking activities for which he faces a minimum sentence of 5 years and a maximum sentence of life imprisonment, $250,000, and 5 years of supervised release.
U. S. Attorney Kenneth Allen Polite, Jr. noted that this was yet another example of how the federal effort is helping to attack and address the tide of violence that is occurring in New Orleans. Special Agents from the Federal Bureau of Investigation (F.B.I.) have been working on this case for several months as part of the NOPD led Multi-Agency Gang Unit (MAG UNIT) and have been steadfast in their resolve to bring these gang members justice.
This is just the latest in a series of gang related cases that the MAG UNIT has investigated over the past year. This Unit is focused on identifying and removing violent gangs from our neighborhoods. U.S. Attorney Polite wanted to personally thank the men and women of this special unit for their hard work and success.
U. S. Attorney Polite reiterated that the second superseding indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
This investigation was led by the Federal Bureau of Investigations as part of the MAG Unit and will be prosecuted by Assistant United States Attorney Maurice E. Landrieu, Jr.
(Download Indictment )
Former State Representative, Girod Jackson, Pleads Guilty to Federal Tax ViolationsRead the Press Release
Former Louisiana State Representative GIROD JACKSON, 41, pleaded guilty today in federal court before U.S. District Judge Jane Triche Milazzo to a three count Bill of Information, which charged him with violating provisions of the United States Tax Code, announced U.S. Attorney Kenneth Allen Polite, Jr. Specifically, JACKSON admitted his guilt to one count of Making a Fraudulent Statement on a Tax Return, a felony, and two counts of Willful Failure to File Tax Returns, misdemeanors.
According to court documents, JACKSON, who represented District 87, an area that includes portions of the West Bank of Jefferson Parish, admitted that he misrepresented on his federal tax return for 2006 the total income received by his company, Diversified Ventures, LLC. In 2007 and 2008, despite having earned sufficient income from Diversified Ventures and other sources and having filed requests for extensions of time to file his tax returns, JACKSON admitted that he failed to file any returns at all. JACKSON was elected to office in 2007 and served his first full year as State Representative for District 87 in 2008.
Upon sentencing, which is set for January 9, 2014, JACKSON faces the possibility of up to three years in prison and a $100,000 fine for Count 1 and up to one year in prison and a $25,000 fine for Counts 2 and 3.
The investigation was led by the Internal Revenue Service. Assistant United States Attorney Daniel Friel is prosecuting this case.
(Download Factual Basis )