Eastern District of Louisiana
Press releases recorded for this federal judicial district.
Mississippi Man Sentenced for Robbing Kentwood BankRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that STEVEN WILLIAMS, age 35 of Jackson, Mississippi, was sentenced on September 28, 2021 to 13 years and 8 months in prison followed by (5) years of supervised release for bank robbery. WILLIAMS was further ordered to pay $5,136.00 in restitution and a $100.00 mandatory special assessment fee.
According to court documents, WILLIAMS used a firearm on November 21, 2016 while robbing the First NBC Bank, whose deposits were insured by the Federal Deposit Insurance Corporation (FDIC), in Kentwood, Louisiana. He previously pleaded guilty to bank robbery by assaulting and putting in jeopardy the life of another by using a dangerous weapon in violation of Title 18, United States Code, Section 2113(a) and (d).
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans praised the work of the Kentwood Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Charles D. Strauss.
Harahan Man Sentenced for Receipt of Child PornographyRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that CHARLES A. LOPEZ (“LOPEZ”), age 29, of Harahan, Louisiana, was sentenced on September 29, 2021 for receipt of child pornography in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1).
The case against LOPEZ developed as a result of an undercover child exploitation investigation conducted by special agents with the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”). On April 30, 2019, HSI agents and special agents with the Louisiana Bureau of Investigation executed a federal search warrant at LOPEZ’s Harahan home and determined LOPEZ received images and videos depicting the sexual exploitation of minors.
U.S. District Judge Ivan L. R. Lemelle sentenced LOPEZ to sixty (60) months incarceration in federal prison, followed by five (5) years of supervised release, and a $100 special assessment fee. Additionally, LOPEZ will be required to register as a sex offender under the Sex Offender Registration Notification Act.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations, and the Louisiana Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Chief of Financial Crimes Unit, Assistant U.S. Attorney Brian M. Klebba.
Federal Judge Sentences West Bank Drug Dealer to 140 Months ImprisonmentRead the Press Release
NEW ORLEANS, LOUISIANA – DAVID TRAN, age 42, of Bridge City, Louisiana, was sentenced on September 29, 2021 by the Honorable Jane Triche Milazzo to 140 months in the Bureau of Prisons for violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to the court records, TRAN pleaded guilty to conspiring with other individuals to manufacture, possess with the intent to distribute, and to distribute 1,000 or more marijuana plants, 400 grams or more of fentanyl, 500 grams or more of methamphetamine, and 100 grams or more of heroin. TRAN also admitted that he possessed large quantities of fentanyl and methamphetamine with the intent to distribute them and that he was manufacturing large quantities of marijuana.
The case resulted from a lengthy Title III wire intercept investigation conducted by the Drug Enforcement Administration in which TRAN and his co-conspirators were captured discussing heroin sales, as well as the construction of a large indoor marijuana grow in Bridge City. The calls led the DEA agents to conduct a search of a warehouse and adjacent residence in Bridge City. During the search, the agents found a large marijuana grow that contained approximately 700 plants in varying stages of growth and equipment sufficient to grow many thousand more plants. Significant work and expense had been put into remodeling the warehouse, including thousands of dollars in lights, cooling systems, and ventilation. The agents also discovered a safe containing a cornucopia of other drugs, including 1,396.2 grams of methamphetamine; 990 grams of MDMA (ecstasy); and 1,175.9 grams of fentanyl, a highly potent synthetic opioid that is fueling the tremendous rise in overdose deaths.
Judge Milazzo sentenced TRAN to 140 months in the Bureau of Prisons to be followed by five years of supervised release after he is released from imprisonment. TRAN was also ordered to pay a mandatory special assessment of $400.
The case was investigated by the Drug Enforcement Administration and the New Orleans Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Several other law enforcement agencies, including Jefferson Parish Sheriff’s Office, Plaquemines Parish Sheriff’s Office, and the Kenner Police Department, assisted in the search of the warehouse in Bridge City. The prosecution is being handled by Assistant United States Attorney David Haller.
Covington Man Sentenced to 240 Months Imprisonment After Pleading Guilty to Distribution of Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BRANDON WARD, age 34, a resident of Covington, Louisiana, was sentenced to 240 months imprisonment by United States District Judge Eldon E. Fallon after previously pleading guilty to a one-count Indictment charging him with distribution of images and videos depicting the sexual exploitation of children, including children as young as less than one (1) year old, in violation of 18 U.S.C. ' 2252(a)(2). Judge Fallon also sentenced WARD to five (5) years of supervised release after his term of imprisonment and pay a $100 mandatory special assessment fee. WARD will also be required to register as a sex offender. Judge Fallon scheduled a restitution hearing for December 16, 2021.
According to court documents, in about October 2019, a special agent with the Federal Bureau of Investigation operating in an undercover capacity accessed a chat room within an instant messaging mobile application known to be a haven for purveyors of digital files depicting the sexual victimization of children. Between September 29, 2019, and October 13, 2019, an individual subsequently determined to be WARD posted over two dozen links to online file storage service accounts. Each link contained hundreds of videos depicting pre-pubescent children engaging in sexually explicit conduct with adults. In total, WARD uploaded at least 47,000 files to the accounts. For example, on October 31, 2019, a special agent with the FBI reviewed the contents of one of WARD’s accounts, and it contained approximately 151 files, all of which depicted the sexual victimization of children as young as less than one year old.
Additionally, a second FBI special agent acting in an undercover capacity participated in direct communication with WARD via Skype, phone, and text message. In the conversations, WARD claimed he had been in contact with an 8-year-old female (Minor 1) who had a crush on him. WARD sent non-sexually explicit pictures he took of Minor 1 to the undercover agent. WARD also instructed the undercover agent, who claimed to be babysitting a six-year-old female, to engage in sexually explicit conduct with the child while WARD watched via Skype.
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 Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Two Plead Guilty to Health Care Fraud SchemeRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced DONALD PETER AUZINE (“AUZINE”) and BONNIE JEAN LAWLESS DIAZ (“DIAZ”) have each pled guilty in federal court relating to their roles in a health care fraud conspiracy.
AUZINE, age 51, a resident of Baton Rouge, Louisiana, pled guilty on September 23, 2021 before U.S. District Judge Jay C. Zainey to Count One of an Indictment charging him with conspiracy to commit health care fraud, in violation of Title 18, United States Code, Sections 1347 and 1349.
DIAZ, age 46, a resident of Slidell, Louisiana, pled guilty on September 23, 2021 before U.S. District Judge Jay C. Zainey to Count One of a Superseding Bill of Information charging her with misprision (or knowing concealment) of the commission of a felony, in violation of Title 18, United States Code, Section 4.
According to the Indictment, in or around March 2014, continuing through in or around October 2016, AUZINE, conspired to knowingly and willfully execute a scheme and artifice to defraud TRICARE, a federal health care benefit program affecting commerce, and other health care benefit programs.
AUZINE was the marketing manager of Prime Pharmacy Solutions (“Prime”), which was located in Slidell, Louisiana. Prime Pharmacy was primarily a closed-door pharmacy whose primary business focus was the production of compounded medication, which, when created properly, were drugs combined, mixed, or altered by licensed pharmacists or other practitioners to meet the specialized needs of individual patients. The Pharmacist-in-Charge (“PIC”) was responsible for supervision, management, and compliance with all federal and state pharmacy laws and regulations pertaining to Prime Pharmacy’s pharmacy practice.
The owner, on behalf of Prime Pharmacy, contracted with various entities, including Pharmacy Benefit Managers (“PBMs”), obligating Prime Pharmacy to collect copayments from beneficiaries in order to be reimbursed by various health care benefit programs, including TRICARE. Additionally, the owner of Prime worked with AUZINE to market the compounded medications produced by Prime Pharmacy. AUZINE found other marketers outside of the state to find beneficiaries that were willing to receive medically unnecessary compounds and doctors willing to prescribe compounds without medical necessity.
AUZINE would pressure the pharmacists to fill prescriptions for beneficiaries where no doctor-patient relationship existed. He also aided in the creation of the prescription pads that had the highest value prescription
Beginning in or around March 2014, and continuing through in or around April 2016, Prime Pharmacy dispensed prescriptions for High-Yield Compounded Medications to beneficiaries of TRICARE and other health care benefit programs that were not medically necessary, induced by kickback payments, or where copayments were either waived or credited by Prime Pharmacy, and accordingly, submitted or caused to be submitted false and fraudulent claims for reimbursement to TRICARE, other health care benefit programs, and PBMs.
AUZINE received a percentage of Prime Pharmacy’s profits, including a percentage of the reimbursements paid by TRICARE and other health care benefit programs procured through fraud.
According to the Superseding Bill of Information, DIAZ had knowledge of the commission of the health care fraud. DIAZ concealed the fraud by knowingly submitting or caused to be submitted compounded medications for which there was no medical necessity and did not as soon as possible make known the same to some judge or other person in civil or military authority under the United States.
“Individuals involved in this scheme illegally billed TRICARE out of close to $15 million and I am pleased that the U.S. Attorney’s Office is requiring justice,” said Special Agent in Charge Cynthia Bruce, Defense Criminal Investigative Service, Southeast Field Office. “There are no victimless crimes and DCIS agents will continue to pursue unscrupulous greedy individuals who steal from our military health care system and all taxpayers."
The Court set sentencing of AUZINE and DIAZ for January 4, 2022.
AUZINE faces a maximum term of imprisonment of ten years, a $250,000 fine, three (3) years supervised release, a $100 special assessment fee, and restitution in the amount of $1.2 million.
DIAZ faces a maximum term of imprisonment of three years, a $250,000 fine, up to one (1) year of supervised release following any term of imprisonment, a $100 special assessment fee, and restitution in the amount of $180,000.
The U.S. Attorney’s Office praised the work of the Defense Criminal Investigative Service – Office of Inspector General, the Department of Homeland Security, the Department of Veterans Affairs – Office of Inspector General, and the United States Postal Service – Office of Inspector General.
The prosecution of the case is being handled by Assistant United States Attorney Kathryn McHugh.
Two Charged in Airline Baggage Scam Involving over $550,000 in False ClaimsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that on September 23, 2021, two Bills of Information charging PERNELL ANTHONY JONES, JR., age 31, of Kenner, Louisiana, and DONMONICK MARTIN, age 29, of Chalmette, Louisiana, for their roles in a conspiracy to defraud airlines through false claims for lost baggage.
JONES was charged in a two-count Bill of Information with Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 1349 and Mail Fraud, in violation of Title 18, United States Code, Section 1341. If convicted, JONES faces a maximum term of twenty (20) years imprisonment as to each count and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss caused by the offense. In addition, JONES faces a term of supervised release of up to three (3) years as to each count and a $200 mandatory special assessment fee. MARTIN was charged with one count of Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371. If convicted, MARTIN faces a maximum term of five years of imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss caused by the offense. MARTIN also faces up to three years of supervised release and a $100 mandatory special assessment fee.
According to court documents, beginning in or around 2015, JONES and his co-conspirators submitted over 180 claims to commercial airlines, including American, Alaska, Southwest, United, and JetBlue, requesting over $550,000 in reimbursement for luggage that JONES falsely alleged had been lost. In total, the airlines paid over $300,000 in fraudulent claims. The Bill of Information alleges that JONES would take flights with commercial airlines under false or fictitious identities using fraudulent identification cards. When he arrived at the destination airport, JONES would falsely claim that his baggage had been lost and would request reimbursement to compensate him for his lost luggage. Through this scheme, JONES and others caused airlines to mail reimbursement checks through the United States Postal Service.
MARTIN was charged for his role in this scam, which included going into Louis Armstrong International Airport in January 2020 under a fictitious identity and falsely telling American Airlines that his bag had been lost on a flight. MARTIN’s Bill of Information also alleges that, on four occasions, MARTIN agreed to accept reimbursement funds from airlines for false claims for lost baggage.
U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans would like to acknowledge the investigation by the Federal Bureau of Investigation, the U.S. Department of Homeland Security, Jefferson Parish Sheriff’s Office, and the City of Dallas Police Department. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
Mandeville Man Sentenced for Defrauding FEMA After a DisasterRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BRUCE D. COX, age 62, of Mandeville, was sentenced on September 23, 2021 to one year of probation and over $35,000 in combined fine and restitution payments today for theft of government funds in connection with a false application for disaster assistance.
According to court documents, COX submitted a falsified application to the Federal Emergency Management Administration (“FEMA”) for disaster assistance. Following the August 2016 storms and flooding in Tangipahoa Parish, the application sought disaster assistance for a rental property in Robert, Louisiana that COX managed. In the application, COX falsely stated that the property in Robert was the owner’s primary residence, when in fact COX rented out the property to a tenant and knew that the property’s owner had never lived there. As a result of false statements in the application, FEMA paid disaster benefits to the property’s owner, despite the property owner not qualifying for those benefits.
United States Magistrate Judge Michael B. North sentenced COX to one year of probation, a fine of $4,000, restitution of $31,361.28 to FEMA, and a mandatory special assessment of $25.
U.S. Attorney Evans praised the work of the Department of Homeland Security’s Office of Inspector General. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
Two Men Plead Guilty to Federal Firearm and Drug Trafficking Charges Stemming from Their Participation in a Winter Shootout at a New Orleans HotelRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today, that CHRIS ROSS, age 20 from Slidell and TREJON HOWARD, age 20 from New Orleans pled guilty on September 22, 2021 to various firearm and drug charges. Their guilty pleas stem from participation in a December 28, 2020 shootout on the 15th floor of the Jung Hotel on Canal Street.
Earlier this year the federal Grand Jury handed down two related Indictments charging a total of seven individuals with various violations of the Federal Gun Control Act and Federal Controlled Substances Act. ROSS and HOWARD are the first of the defendants to plead guilty in connection with these cases. Both ROSS and HOWARD pled guilty to Counts 1, 2, 3, and 4 of the Indictment pending against them.
In their the five (5) count Indictment, the grand jury charged ROSS, Tiquan EVERSON, HOWARD, and Blake BATISTE. Count 1 charged each with conspiracy to use and carry firearms during and in relation to a drug trafficking crime and a crime of violence, in Violation of Title 18, United States Code, Section 924(o). Count 2 charged each with attempting to commit a Hobbs Act Robbery, in violation of Title 18, United Stated Code, Section 1951. Count 3 charged each with carrying and discharging firearms during and in relation to a drug trafficking crime and a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(iii). Count 4 charged each with conspiracy to possess with the intent to distribute marijuana, in violation of Title 21, United States Code, Section 841(1)(D). Count 5 charged EVERSON with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
Counts 1 and 2 carry a maximum sentence of 20 years in prison, a $250,000.00 fine, and up to 3 years supervised release. Count 3 carries a consecutive sentence of 10 years to life in prison, a $250,000.00 fine, and up to 5 years supervised release. Count 4 carries a maximum sentence of five years in prison, a $250,000.00 fine, and at least 2 years supervised release. Count 5 carries a maximum sentence of 10 years in prison, a $250,000.00 fine, and up to 3 years supervised release. Both ROSS and HOWARD, individually, must pay a mandatory $100 special assessment fee for each count.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the New Orleans Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorneys Maurice Landrieu and Elizabeth Privitera are in charge of the prosecution.
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Shipping Company Fined $2M in a Multi-District Case for Concealing Illegal Discharges of Oily Water into the Atlantic OceanRead the Press Release
WASHINGTON – Diana Wilhelmsen Management Limited (DWM), a Cyprus-based company that operates several commercial vessels, was sentenced today in federal court before U.S. District Court Judge Rebecca Beach Smith in Norfolk, Virginia, after pleading guilty to violations of the Act to Prevent Pollution from Ships that had occurred on the Motor Vessel (M/V) Protefs.
DWM pleaded guilty to two felony offenses in two judicial districts – the Eastern District of Virginia and the Eastern District of Louisiana. DWM was sentenced to pay a fine of $2 million placed on probation for a period of four years, and ordered to implement a comprehensive Environmental Compliance Plan as a special condition of probation.
In pleading guilty, DWM admitted that crew members onboard the M/V Protefs, a 40,230 gross-ton, 738-foot ocean-going commercial bulk carrier, knowingly failed to record in the vessel’s oil record book the overboard discharge of oily bilge water from mid-April 2020 until before the vessel arrived in Newport News, VA, on June 10, 2020. The vessel also arrived in New Orleans, Louisiana on June 1, 2020 with a knowingly false oil record book.
DWM admitted that the crew on the vessel used an emergency de-watering system to illegally discharge oily water directly into the ocean from the vessel’s bilge holding tank, duct keel and bilge wells. Those discharges were not recorded in the oil record book as required. The Chief Engineer, Vener Dailisan, pleaded guilty to making a false statement to U.S. Coast Guard inspectors about the existence of a Sounding Log which is routinely sought by inspectors in order to ascertain the accuracy of the oil record book. Dailisan was sentenced to a fine of $3,000 and placed on probation for two years.
“The United States will vigorously enforce laws that protect our ocean resources,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Holding shipping companies to account when wastes are unlawfully discharged overboard, and covered up through falsified documents, is vital to protecting our environment.”
“We are firmly committed to enforcing federal environmental laws and will not tolerate conduct that pollutes our water, imperils natural ecosystems, and endangers our wildlife,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “As this case demonstrates, those who contaminate our most precious natural resources by illegally dumping hazardous waste into the ocean will be held accountable, especially when they falsify their records to avoid detection.”
“The commercial shipping industry is essential to commerce in this region, but their work must ensure they do not neglect their professional and legal obligations,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Today’s announcement emphasizes that our office along with our federal partners are committed to holding accountable all parties whose criminality jeopardizes our environment and places the public and the ecosystem at risk.”
Senior Trial Attorney Kenneth Nelson of the Environment and Natural Resources Division’s Environmental Crimes Section, with the assistance of Assistant U.S. Attorney Joseph Kosky of the Eastern District of Virginia and Assistant U.S. Attorney Julia Evans of the Eastern District of Louisiana, prosecuted the case. This prosecution is the result of an investigation by the Coast Guard Investigative Service Chesapeake Region and Coast Guard Sector Virginia.
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New Orleans Man Sentenced to 76 Months Imprisonment for Violations of Conspiracy to Commit Bank Fraud and the Federal Gun Control ActRead the Press Release
NEW ORLEANS – The United States Attorney’s Office for the Eastern District of Louisiana announced that on September 21, 2021, the Honorable Greg G. Guidry sentenced JUAN ARMSTEAD (“ARMSTEAD”), age 34, a resident of New Orleans, Louisiana, to 76 months imprisonment for violations of Conspiracy to Commit Bank Fraud (Count 1) and the Federal Gun Control Act (Count 2), in violation of Title 18, United States Code, Sections 1344, 1349, and 922(g)(1).
According to court documents, law enforcement identified ARMSTEAD as a member of a group of individuals who recruited homeless people and others to cash counterfeit checks at various financial institutions, primarily in Jefferson Parish, Louisiana. The checking account information was derived from checks stolen from United States Postal Service mail, primarily in Plaquemines Parish, Louisiana. ARMSTEAD and his co-conspirators convinced the homeless people to submit counterfeit and forged checks at the financial institutions. The homeless people were allowed to keep a portion of the negotiated check proceeds for themselves.
On January 31, 2019, federal law enforcement officers arrested ARMSTEAD pursuant to a federal search warrant. During their search, law enforcement located a Palmetto State Armory rifle Model PA-15. In April 2015, the federal government convicted ARMSTEAD of a felony offense and he is prohibited from possessing firearms.
For Counts 1 and 2, the Court sentenced ARMSTEAD to 76 months imprisonment for each count to be served concurrently. Upon his release from federal prison, ARMSTEAD faces supervised release terms of 3 years to be served concurrently. ARMSTEAD must also pay $200 in mandatory special assessment fees. While the Court did not impose any fines, ARMSTEAD must pay $80,132.32 in restitution.
The United States Attorney’s Office for the Eastern District of Louisiana praised the work of the United States Secret Service, the Jefferson Parish Sheriff’s Office, and the Saint Tammany Parish Sheriff’s Office for their work in investigating this case. The case is being prosecuted by United States Attorney Duane A. Evans.
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Man Sentenced for Attempted Robbery of an ATMRead the Press Release
NEW ORLEANS, LOUISIANA – TYRIK SCOTT, age 21, a resident of Violet, Louisiana, was sentenced on September 21. 2021 by the Honorable Susie Morgan, announced U.S. Attorney Duane A. Evans. SCOTT was sentenced to time served, 3 years of supervised release, and a $100 special assessment. The defendant was also ordered to pay $39,324 in restitution.
According to court records, on or about February 5, 2020, SCOTT and others attempted to break into an ATM located in the drive-through of a Capital One Bank using sledgehammers, crowbars, chains, and a truck. Just prior to this robbery attempt, SCOTT and others were observed in the same truck attempting to break into an ATM at Hancock Whitney Bank.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Chief of the General Crimes Unit.
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Carjacker Sentenced to 97 Months ImprisonmentRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that DONTE MOORE, age 23, was sentenced on September 21, 2021 by U.S. District Court Judge Susie Morgan, to 97 months imprisonment. On May 18, 2021, MOORE pled guilty to a Superseding Bill of Information charging him in Count One with Carjacking, a violation of 18 U.S.C. § 2119(1), and in Count Two with Using and Carrying a Firearm in Furtherance of a Crime of Violence, a violation of 18 U.S.C. § 924(c)(1)(A)(i).
Judge Morgan sentenced MOORE to 37 months imprisonment as to Count One and to 60 months as to Count Two. The sentence for Count Two must run consecutively to Count One. MOORE also received 3 years supervised release for Count One, and five years supervised release as to Count Two, which will run concurrently. Supervised release commences after MOORE is released from custody. MOORE must also pay $200 in mandatory special assessment fees. Restitution will be determined by the Court at a later date.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department. It was prosecuted by Assistant United States Attorney Liz Privitera of the Violent Crime Unit.
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New Orleans Resident Pleads Guilty to Laundering More Than $118,00 of Her Partner’s Heroin Proceeds by Buying a House in New Orleans East Where They Lived, Agrees to Forfeit a Mercedes Benz and a Florida Property as Drug ProceedsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that ANNICE FALKINS, age 35, a resident of New Orleans, Louisiana, pled guilty on August 24, 2021 to laundering more than $118,000 of her partner’s heroin proceeds by purchasing a home in New Orleans East that they then shared. FALKINS is facing up to 10 years’ imprisonment, a possible fine of up to $250,000 and at least three years of supervised release upon her release from prison for violating Title 18, United States Code, Section 1957(a).
FALKINS’ partner, Arthur Johnson, is a heroin dealer. Johnson pled guilty to conspiring to distribute more than 1 kilogram of heroin and agreed to forfeit six pieces of diamond encrusted jewelry, including a Rolex watch, purchased with drug proceeds. According to court records, on April 6, 2016, FALKINS purchased a home in New Orleans, with 14 cashier checks, all for less than $10,000. These 14 cashier checks totaled approximately $118,226.51. FALKINS purchased these cashier checks with funds that she knew Johnson had earned from selling heroin. FALKINS bought these cashier checks and then used them on April 6, 2016, with the intent to advance Johnson’s heroin activities. FALKINS also conduced these transactions – the purchase of the cashier checks and the New Orleans property – in a knowing effort to conceal the nature, location, source, ownership, and control of some of the proceeds of Johnson’s heroin selling activities and to evade reporting requirements under federal and state law.
Pursuant to her guilty plea, FALKINS agreed to forfeit to the United States a 2017 Mercedes Benz and real estate property in Davenport, Florida, which she bought after Johnson was arrested. The Mercedes and the Florida home were purchased with profits from Johnson’s heroin sales.
According to court records, on December 27, 2017, agents intercepted communications between Johnson and Ricky Redd, a Chicago-based drug courier. In these communications, Johnson and Redd discussed a pending delivery of heroin. Redd was driving that day from Chicago to New Orleans to give Johnson a bag containing approximately three kilograms of heroin.
Later that same day, surveillance agents observed Johnson and Redd twice meet at a Holiday Inn Hotel in New Orleans. During the first meeting, Redd gave Johnson a red bag containing approximately three kilograms of heroin. During the second meeting, Johnson gave Redd approximately $187,000. Redd was to earn a small amount of the money that Johnson paid him.
The next day, December 28, 2017, agents conducted a traffic stop of Johnson and FALKINS. Johnson was placed under arrest and agents seized three brick chucks of heroin and eleven bags of heroin, totaling 1.3 kilograms, from FALKINS and Johnson’s home in New Orleans East. Agents also seized from their residence a digital scale, six cell phones, over $11,000 in cash, a money counter, a kilogram press, two sealed GNC Inositol bottles, often used as “cutting agents” to dilute heroin, numerous items of jewelry, including diamond-encrusted necklaces and a diamond-encrusted Rolex watch, and numerous shipping labels with FALKINS’ name and the New Orleans property address on boxes that contained plastic bags, electrical tape, and coffee grinds used to conceal narcotics.
U.S. District Judge Susie Morgan will sentence FALKINS and Johnson on December 1, 2021. U.S. Attorney Evans praised the work of the FBI’s New Orleans Gang Task Force in investigating this matter. Assistant United States Attorneys David Howard Sinkman and Brandon Long are in charge of the prosecution.
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Federal Court Permanently Enjoins Tax Return Preparers in LouisianaRead the Press Release
A federal court in the U.S. District Court for the Eastern District of Louisiana has permanently enjoined two New Orleans-area tax return preparers from preparing returns for others and from owning, operating, or franchising any tax return preparation business in the future.
The court entered judgment against Mario Alexander by default; defendant Leroi Jackson consented to entry of the injunction against him. The terms of the orders require that Alexander and Jackson, both individually and doing business as The Taxman Financial Services, send notices of the injunction to each person for whom they prepared federal tax returns and post the injunctions in places where they conduct business, including social media accounts and websites. The orders also provide that the United States may conduct post-judgment discovery to monitor compliance.
The civil complaint filed against Alexander and Jackson alleged that they prepared tax returns claiming fabricated business income and expenses, as well as claiming various false tax deductions and credits, including charitable contributions and education credits. It also alleged that defendants fabricated business income and/or expenses in order to increase claims for earned income tax credits. According to the complaint, Alexander and Jackson significantly underreported their customers’ tax liabilities, obtained fraudulent tax refunds, and charged exorbitant fees for their services, often without their customers’ knowledge.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Eastern District of Louisiana U.S. Attorney Duane A. Evans Reminds the Public to be Aware of Fraud when Disaster Strikes and Report it to the National Center for Disaster FraudRead the Press Release
NEW ORLEANS - The Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, creating opportunities for criminal exploitation during this stressed time. The NCDF, a national coordinating agency within the Department of Justice, is designed to facilitate the detection, prevention, investigation, and prosecution of arising out of natural and man-made disasters. The NCDF operates a call center at Louisiana State University in Baton Rouge to process disaster fraud complaints, provide relevant information and advocate for victims of such fraud. More than 20 federal, state, and local agencies participate in the NCDF, thus enabling efficient complaint referrals to the appropriate agency.
Locally, Hurricane Ida caused severe damage to communities from Southeast Louisiana, through the Tennessee River Valley, and ultimately reached those along the Eastern Seaboard. With the inevitable occurrence of natural and man-made disasters and the devastation to lives and property they bring, criminals are poised to strike helpless victims at their most vulnerable and desperate.
Examples of criminality reported to the NCDF and law enforcement include:
- Impersonation of federal law enforcement officials
- Identity theft
- Fraudulent submission of claims to insurance companies and the federal government
- Fraudulent activity related to solicitations for donations and charitable giving
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts
- Price gouging
- Contractor Fraud
- Debris removal fraud; and
- Theft, looting, and other violent crime.
Members of the public must be wary and verify the legitimacy of anyone claiming to work on behalf of disaster victims. Exercise caution before providing personal identifying or financial information to anyone, in the wake of a disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods.
If you suspect fraud, waste, abuse, or mismanagement involving disaster relief operations, or believe you have been the victim of fraud from any source soliciting relief funds on behalf of disaster victims, please contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. Complaints may also be filed online at http://www.justice.gov/DisasterComplaintForm. Learn more about the NCDF at www.justice.gov/disaster-fraud. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
New Orleans Man Sentenced to 272 Months in Prison for Eight Armed RobberiesRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that ERISTON WILSON (“WILSON”), age 28, of New Orleans, Louisiana was sentenced to imprisonment on September 15, 2021 by U.S. District Court Judge Lance M. Africk for charges relating to eight armed robberies of gas stations and convenience stores.
WILSON committed armed robberies of three Shell Gas Stations on General de Gaulle Drive and multiple convenience stores on the West Bank and in the Seventh Ward. He brandished a firearm and wore blue gloves in the robberies.
In August of 2019, WILSON was charged with one count of conspiracy to commit Hobbs Act robbery and one count of brandishing a firearm during and in relation to a crime of violence.
WILSON was found guilty by a jury in December 2019 on both counts.
Judge Africk sentenced WILSON to 272 months in the Bureau of Prisons, 60 months of supervised release, and $200 in mandatory special assessment fees.
The U.S. Attorney's Office praised the work of the Federal Bureau of Investigation. The prosecution of the case was conducted by Assistant U.S. Attorneys Kathryn McHugh and Greg Kennedy.
Louisiana Doctor Indicted for Illegally Dispensing over One Million Doses of Opioids and for $5.1 Million Health Care Fraud SchemeRead the Press Release
WASHINGTON - A federal grand jury in New Orleans, Louisiana, returned an indictment on August 26, 2021 charging a Louisiana physician for his role in distributing over 1,200,000 doses of Schedule II controlled substances, including oxycodone and morphine, outside the scope of professional practice and not for a legitimate medical purpose, and for maintaining his clinic for the purpose of illegally distributing controlled substances. Today’s indictment also charges the physician with defrauding health care benefit programs, including Medicare, Medicaid, and Blue Cross and Blue Shield of Louisiana, of more than $5,100,000, given that the opioid prescriptions were filled using health insurance benefits.
According to court documents, Adrian Dexter Talbot, M.D., 55, of Slidell, owned and operated a medical clinic located in Slidell that accepted cash payments from individuals seeking prescriptions for Schedule II controlled substances. In 2015, Talbot took a full-time job in Pineville, Louisiana, and although he was no longer physically present at the Slidell clinic, he pre-signed prescriptions to be distributed to individuals there without seeing or examining those individuals. In 2016, Talbot hired another practitioner who also pre-signed prescriptions to be distributed in the same manner at the Slidell clinic. With Talbot’s knowledge, individuals were filling their prescriptions that were issued outside the scope of professional practice and not for a legitimate medical purpose using their insurance benefits, thereby causing health care benefit programs to be fraudulently billed for filling prescriptions that were written without an appropriate patient examination or determination of medical necessity for the prescription.
Talbot is charged with one count each of conspiracy to unlawfully distribute and dispense controlled substances, maintaining a drug-involved premises and conspiracy to commit health care fraud, as well as four counts of unlawfully distributing and dispensing controlled substances. The defendant is scheduled for his initial court appearance Sept. 10 before U.S. Magistrate Judge Michael B. North of the U.S. District Court for the Eastern District of Louisiana. If convicted, he faces a maximum penalty of 10 years for conspiracy to commit health care fraud and 20 years each for all other counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; Special Agent in Charge Douglas A. Williams Jr. of the FBI’s New Orleans Field Office; Special Agent in Charge Miranda Bennett of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Jeffrey Breen for the Department of Veterans Affairs, Office of Inspector General (VA-OIG) made the announcement.
The FBI, HHS-OIG, VA-OIG, and the Louisiana Office of the Attorney General’s Medicaid Fraud Control Unit are investigating the case.
Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David Howard Sinkman of the Eastern District of Louisiana are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Seven More Charged for Involvement in Staged Automobile Accident SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today the August 26, 2021 Indictment of ASHLEY McGOWAN (“McGOWAN”), age 35; LERTRICE JOHNSON (“L. JOHNSON”), age 45; DAVIENQUE JOHNSON (“D. JOHNSON”), age 27; HERBERT ALLEN (“ALLEN”), age 36, TROYLYNN BROWN (“T. BROWN”), age 34; DION RIDLEY (“RIDLEY”), age 22; and JARVIS BROWN (“J. BROWN”), age 29, of New Orleans, Louisiana. These seven defendants were charged in a four-count federal indictment. All of the defendants were charged in count one (1) with Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371. McGOWAN, L. JOHNSON, and D. JOHNSON were charged in count two (2) with Mail Fraud in violation of Title 18, United States Code, Sections 1341 and 2. ALLEN, T. BROWN, RIDLEY, and J. BROWN were charged in counts three (3) and four (4) with Mail Fraud in violation of Title 18, United States Code, Sections 1341 and 2. If convicted, the defendants face a maximum penalty of five (5) years for Count 1 and twenty (20) years as to Counts 2-4. Upon their release from prison, each defendant can be placed on a term of supervised release for up to five (5) years and fined up to $250,000.00 per count. The defendants must pay a mandatory $100 special assessment cost for each count of conviction. Today’s Indictment brings the total of defendants charged in this federal probe into the staging of accidents with tractor-trailers to 40.
The Indictment charges these defendants with conspiring among themselves and with others to stage automobile accidents with tractor-trailers in order to defraud trucking and insurance companies. Two incidents are at the center of this Indictment. The first occurred on June 8, 2016, when McGOWAN, L. JOHNSON, and D. JOHNSON conspired with Damien Labeaud (“Labeaud”), Keishira Robinson (“K. Robinson”), and others to intentionally collide with a tractor-trailer in the area of Chickasaw Street and Louisa Street in New Orleans. After the intentional collision, McGOWAN, L. JOHNSON, and D. JOHNSON lied in depositions, falsely claiming that K. Robinson was driving the car that collided with the tractor-trailer, when in fact Labeaud was driving the car and intentionally hit the tractor-trailer. The defendants also falsely claimed that McGOWAN was in the car at the time of the collision, even though she had been riding in the “spotter” or getaway car and entered the “slammer” car only after the collision occurred. For their part, Labeaud and K. Robinson have been charged in previous indictments and pleaded guilty to their role in the staged automobile accident scheme.
The second intentional collision occurred on June 28, 2017, and involved defendants ALLEN, T. BROWN, RIDLEY, and J. BROWN. Each of these defendants was a passenger in a car that intentionally collided with a tractor-trailer on the corner of Calliope Street and Tchoupitoulas Street in New Orleans. The driver of the car at the time was Roderick Hickman (“Hickman”), another individual who was previously charged and has pleaded guilty to staging automobile accidents. Each of the four defendants lied in depositions, falsely claiming that ALLEN was driving the car, when in fact Hickman was driving the car that intentionally hit the tractor-trailer. Labeaud drove the getaway car and picked up Hickman after the collision occurred.
As discussed in the Indictment, Labeaud and Hickman received payments for referring the defendants to attorneys who would handle their cases. The defendants were treated by doctors and healthcare providers at the direction of their attorneys. Furthermore, through their attorneys, the defendants secured settlements from the insurance companies who insured the commercial carriers.
The defendants will be required to appear before a United States Magistrate Judge for an initial appearance and arraignment on this Indictment.
U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brandon S. Long; Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Maria M. Carboni; Assistant U.S. Attorney Edward Rivera; and Assistant U.S. Attorney Shirin Hakimzadeh.
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California Resident Charged in Superseding Indictment for Role in Sim Swap Scam Targeting at Least 40 People, Including New Orleans ResidentRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that RICHARD YUAN LI, age 21, a resident of Hercules, California, was charged on August 26, 2021 by a federal grand jury seated in the Eastern District of Louisiana in a four-count Superseding Indictment with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1343 and 1349 (Count 1), conspiracy to engage in interstate communication with intent to extort and to commit computer fraud and abuse, in violation of Title 18, United States Code, Sections 371, 875(d), and 1030(a)(7) (Count 2), wire fraud, in violation of Title 18, United States Code, Section 1343 (Count 3), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A (Count 4), for his role in a SIM Swap scam that targeted at least forty people, including a New Orleans-area physician.
According to the Superseding Indictment, a SIM Swap scam is a cellular phone account takeover fraud that results in the routing of a victim’s incoming calls and text messages to a different phone. Once a perpetrator is able to swap the SIM card, it is likely he is able to obtain access to a victim’s various personal accounts, including email accounts, bank accounts, and cryptocurrency accounts, as well as any other accounts that use two-factor authentication.
LI participated in a scheme that involved multiple parts. First, in January 2018, he and a friend, B.P., defrauded Apple, Inc. into providing a second Apple iPhone without paying for it by convincing an Apple customer service representative that they had not received an Apple iPhone 8 they ordered (hereinafter “the Apple iPhone 8”). LI took possession of the Apple iPhone 8 and registered it using his email address and the name of his close relative. He and his co-conspirators then arranged for victims’ telephone numbers to be swapped to SIM cards contained in cellular phones in their possession, including the Apple iPhone 8. Specifically, on November 10, 2018, Victim A’s telephone number was swapped to a SIM card contained in the Apple iPhone 8, which LI possessed in the San Diego, California area. Thereafter, LI and his co-conspirators gained access to victims’ email accounts and cryptocurrency accounts as a result of the SIM Swap and stole a significant portion of victims’ cryptocurrency. Finally, as part of their scheme, after gaining access to victims’ accounts, LI and his co-conspirators contacted victims and demanded that they pay ransoms in order to avoid further harm, including additional account compromises, the loss of additional cryptocurrency, and the release of victims’ confidentiality information the conspirators obtained. In total, between July 19, 2018, and December 6, 2018, at least forty different phone numbers were activated on LI’s Apple iPhone 8.
If convicted, LI faces a maximum term of twenty (20) years in prison as to each of Counts 1 and 3, up to five (5) years in prison as to Count 2, and a mandatory consecutive two (2) years in prison as to Count 4, a fine of up to $250,000.00, up to three (3) years of supervised release after imprisonment, and a mandatory $100 special assessment per count.
U. S. Attorney Evans reiterated that a Superseding Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Corruption Unit, is in charge of the prosecution.
New York Man Pleads Guilty to Passing Altered Postal Money Orders and TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ANTOINE MERCHANT, age 32, of New York, New York, pleaded guilty on August 26, 2021 to conspiracy to pass altered U.S. Postal money orders, passing altered U.S. Postal money orders and possessing stolen U.S. government property today before United States District Court Judge Carl J. Barbier of the Eastern District of Louisiana.
According to court records, MERCHANT and a co-defendant who has already plead guilty, Anthony Smalls, travelled from New York to Louisiana in October of 2019 to cash stolen U.S. Postal money orders that had been altered to show amounts worth hundreds of dollars. MERCHANT and the co-defendant cashed two such postal money orders in Kenner and Metairie, LA, and a number of altered money orders in the Baton Rouge area. When arrested, the defendants also possessed 58 U.S. Postal money orders that they had stolen from an Ascension Parish U.S. Post Office the day before.
MERCHANT is to be sentenced on December 9, 2021. At that time, he faces a sentence of up to ten years in prison on the possession charge and up to five years in prison for the Postal money order charges, up to $250,000 in fines, and up to three years of supervised release. At sentencing, MERCHANT must also pay a mandatory $100 special assessment for each count of conviction.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, along with assistance from the Louisiana State Police - Criminal Investigations Department, Jefferson Parish Sheriff’s Office and Ascension Parish Sheriff’s Office, in investigating this matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
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Bank Teller Charged with Federal Fraud ChargesRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that on August 27, 2021 a Bill of Information charging DEMETRIA MYERS SILVIO, age 32, of New Orleans, Louisiana, with Wire Fraud, in violation of Title 18, United States Code, Section 1343. If convicted, SILVIO faces a maximum term of twenty (20) years imprisonment and/or 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 of the offense. In addition, SILVIO faces a term of supervised release of up to three (3) years after her release from prison and a mandatory $100 special assessment fee.
According to the Bill of Information, between November 2017 and February 2020, SILVIO held the positions of head teller, universal banker, and mortgage loan assistant at IberiaBank (“Iberia”) in New Orleans and Metairie. From December 3, 2018 to December 6, 2019, SILVIO embezzled approximately $63,059.82 from five customers’ Iberia accounts by forging approximately 66 counter checks. SILVIO deposited the fraudulent checks into her own bank accounts with Chase Bank and Capital One.
U.S. Attorney Evans 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 U.S. Attorney’s Office would like to acknowledge the investigation by the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
New Orleans Man Pleads Guilty to Distributing More Than 1 Kilogram of Heroin and Agrees to Forfeit a Mercedes Benz and Six Pieces of Diamond Encrusted Jewelry, Including A Rolex, All Purchased with Heroin ProceedsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that ARTHUR JOHNSON, age 44, a resident of New Orleans, Louisiana, pled guilty on August 24, 2021 to conspiring to distribute one kilogram or more of heroin. JOHNSON is facing a mandatory minimum sentence of 10 years’ imprisonment up to a maximum sentence of life imprisonment, a possible fine of up to $10,000,000, and at least five years of supervised release upon his release from prison. JOHNSON must also pay a mandatory $100 special assessment cost.
According to court records, on December 27, 2017, agents intercepted communications between JOHNSON, a New Orleans based heroin dealer, and Ricky Redd, a Chicago-based drug courier. In these communications, JOHNSON and Redd discussed a pending delivery of heroin. Redd was driving that day from Chicago to New Orleans to give JOHNSON a bag containing approximately three kilograms of heroin.
Later that same day, surveillance agents observed JOHNSON and Redd met twice at a Holiday Inn Hotel in New Orleans. During the first meeting, Redd gave JOHNSON a red bag containing approximately three kilograms of heroin. During the second meeting, JOHNSON gave Redd approximately $187,000. Redd was to earn a small amount of the money that JOHNSON paid him.
The next day, December 28, 2017, agents conducted a traffic stop of JOHNSON. JOHNSON was placed under arrest and agents seized three brick chucks of heroin and eleven bags of heroin, totaling 1.3 kilograms of heroin from his home in New Orleans East. Agents also seized from the home a digital scale, six cell phones, over $11,000 in cash, a money counter, a kilogram press, two sealed GNC Inositol bottles, which are used as “cutting agents” to dilute heroin, and numerous items of jewelry, including diamond-encrusted necklaces and a diamond-encrusted Rolex watch.
The evidence against JOHNSON includes numerous intercepted communications, including jail calls, physical surveillance, witness statements, and controlled purchases of heroin. Between April 2017 and December 2017, agents identified thirteen cellular phones used by JOHNSON. JOHNSON’s practice was to purchase a disposable “burner” cell phone approximately every 30 days and notify his drug associates via text when he obtained a new phone number. JOHNSON would use the new phone in furtherance of his drug operation. After thirty days, JOHNSON would discard the phone and immediately obtain a new phone. JOHNSON, who previously had been convicted of federal drug charges, engaged in this practice to thwart law enforcement and avoid wiretaps.
Pursuant to the plea agreement, JOHNSON agreed to forfeit a 2017 Mercedes Benz, $11,543.00 in cash, and jewelry, including a Rolex watch covered in approximately 17.45 carats of diamonds, a gold tennis necklace with approximately 25.67 carats of diamonds, a ninja shaped pendant covered with the phrases “XXO” and “Never Hesitate” and which is attached to a crown with approximately 10 carats of diamonds, a gold crown pendant covered in approximately 5.42 carat of diamonds, a gold tennis necklace with approximately 4.68 carats of diamonds, and a gold and diamond rope necklace.
U.S. District Judge Susie Morgan will sentence JOHNSON on December 1, 2021. JOHNSON and six other defendants were charged in 2018 with conspiring to distribute heroin in the New Orleans area. All but one of these defendants have pled guilty
U.S. Attorney Evans praised the work of the FBI’s New Orleans Gang Task Force in investigating this matter. Assistant United States Attorneys David Howard Sinkman and Brandon Long are in charge of the prosecution.
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New Orleans Man Sentenced to 46 Months in Prison for Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that TORREL KNOX (“KNOX”), age 28, of New Orleans, Louisiana was sentenced to imprisonment on August 19, 2021 by U.S. District Court Judge Eldon E. Fallon for charges relating to being a felon in possession of a firearm.
KNOX pled guilty on December 19, 2019, to being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1). The conviction related to an encounter with the United States Marshals Fugitive Task Force. On September 27, 2018, law enforcement encountered KNOX and discovered a Glock Model 19 handgun with an extended magazine containing 32 live hollow point bullets in his waistband. KNOX had previously been convicted of Aggravated Battery in state court.
Judge Eldon E. Fallon sentenced KNOX to 46 months in the Bureau of Prisons, to be followed by a term of supervised release for three years and a mandatory $100 assessment.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The U.S. Attorney’s Office praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The prosecution of the case was conducted by Assistant U.S. Attorney Kathryn McHugh.
Laplace Woman Pleads Guilty to Wire FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ARLENE TRANCHINA, age 55, of Laplace, pleaded guilty to one-count of wire fraud today before United States District Court Judge Wendy B. Vitter in the Eastern District of Louisiana.
According to court records, TRANCHINA was employed as the office manager for a company located in Reserve, Louisiana. From 2017 to October of 2019, she embezzled approximately $234,000 from her employer by making over ninety (90) checks for company expenses payable to herself or cash. In addition, TRANCHINA also used a company credit card without authorization to make over $70,000.00 in purchases.
Sentencing is set for November 16, 2021, before United States District Court Judge Vitter. At that time, TRANCHINA faces a sentence of up to twenty (20) years in prison, a fine of up to $250,000 or twice the gross gain the defendant or twice the gross loss to the victim, and up to three (3) years of supervised release.
U.S. Attorney Evans praised the work of the United States Secret Service, along with assistance from the St. John the Baptist Parish Sheriff’s Office, in investigating this matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
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Second Superseding Indictment Charges Members and Associates of the Byrd Gang with Committing Violent Crimes in Aid of Racketeering, Conspiracy to Commit Rico and Drug Trafficking, and Other Serious Federal CrimesRead the Press Release
NEW ORLEANS, LOUISIANA – TIM JACKSON, a/k/a “T-Maf,” JAMES ALEXANDER, a/k/a “Poo,” a/k/a “Black,” a/k/a “Freak,” CHANCE SKIPPER, a/k/a “Duna,” ERNEST THOMAS, a/k/a “E-Maf,” SAMUEL MORTON, a/k/a “Sosa,” TERRAN WILLIAMS, a/k/a “Funky,” TYRONE BOVIA, a/k/a “Sixx,” JAVONTA DOLEMAN, a/k/a “Dutt,” ALLEN GRAY, a/k/a “Kyedi,” and Randy Calvin, a/k/a “Tokey Hefner,” all of New Orleans, Louisiana, were charged in an eleven count second superseding indictment by a Federal Grand Jury on Friday, August 13, 2021.
According to the second superseding indictment, members of this organization and their associates ran a violent drug trafficking ring in and around the City of New Orleans dating back to 2014. During the course of this organization’s life, its members and associates distributed controlled substances, possessed firearms, committed shootings and violent acts, including murder, attempted murder and aggravated battery.
All of the defendants are charged in Counts 1, 2 and 3. Specifically, TIM JACKSON, a/k/a “T-Maf,” JAMES ALEXANDER, a/k/a “Poo,” a/k/a “Black,” a/k/a “Freak,” CHANCE SKIPPER, a/k/a “Duna,” ERNEST THOMAS, a/k/a “E-Maf,” SAMUEL MORTON, a/k/a “Sosa,” TERRAN WILLIAMS, a/k/a “Funky,” TYRONE BOVIA, a/k/a “Sixx,” JAVONTA DOLEMAN, a/k/a “Dutt,” ALLEN GRAY, a/k/a “Kyedi,” and Randy Calvin, a/k/a “Tokey Hefner,” are charged in Count 1 with a violation of 18 U.S.C. § 1962(d) (Racketeer Influenced and Corrupt Organizations Conspiracy), for which they face a sentence of up to life imprisonment, up to a $250,000 fine, up to five years supervised release, and a mandatory $100 special assessment fee. They are charged in Count 2 with a violation of 21 U.S.C. § 846 (Conspiracy to Distribute Controlled Substances), for which they face a mandatory minimum of 10 years imprisonment up to life, up to a $10,000,000 fine, at least five years supervised release, and a mandatory $100 special assessment fee. Finally, all the defendants are charged in Count 3 with a violation of 18 U.S.C. § 924(o) (Conspiracy to Possess Firearms), for which they face up to 20 years imprisonment, a fine of up to $250,000, up to three years supervised release, and a mandatory $100 special assessment fee.
Defendants TERRAN WILLIAMS, a/k/a “Funky,” TYRONE BOVIA, a/k/a “Sixx,” JAVONTA DOLEMAN, a/k/a “Dutt,” are charged in Counts 4 and 6 with a violation of 18 U.S.C. § 1959(a)(1) (Murder in Aid of Racketeering) for the murders of Wynston Jackson and Lawrence Williams, IV, for which they face a sentence of mandatory life imprisonment or death, up to a $250,000 fine, up to five years of supervised release, and a mandatory $100 special assessment fee.
Defendants TERRAN WILLIAMS, a/k/a “Funky,” TYRONE BOVIA, a/k/a “Sixx,” JAVONTA DOLEMAN, a/k/a “Dutt,” are charged in Counts 5 and 7 with a violation of 18 U.S.C. § 924(j) (Causing Death Through the Use of a Firearm) also for the murders of Wynston Jackson and Lawrence Williams, IV, for which they face a mandatory minimum sentence of ten years up to life imprisonment or death, up to a $250,000 fine, up to five years of supervised release, and a mandatory $100 special assessment fee.
No decision concerning the death penalty has been made at this time. As in all possible capital cases, this case will have to be reviewed by the Department of Justice Capital Crimes Unit in Washington D.C. before the Attorney General makes a final decision on this issue.
JAMES ALEXANDER, a/k/a “Poo,” a/k/a “Black,” a/k/a “Freak,” and TYRONE BOVIA, a/k/a “Sixx,” are charged in Count 8 for a violation of 18 U.S.C. § 1959(a)(3) (Assault with a Dangerous Weapon in Aid of Racketeering), which carries a sentence of up to 20 years imprisonment, up to a $250,000 fine, up to three years supervised release, and a mandatory $100 special assessment fee. They are likewise charged in Count 9 for a violation of 18 U.S.C. § 924(c)(1)(A) (Discharge of a Firearm During and in Relation to a Crime of Violence or Drug Trafficking Crime), which carries a mandatory minimum sentence of 10 years imprisonment up to life, up to a $250,000 fine, up to five years supervised release, and a mandatory $100 special assessment fee. This sentence must run consecutive to any other sentence.
Finally, JAMES ALEXANDER, a/k/a “Poo,” a/k/a “Black,” a/k/a “Freak,” is charged in Counts 10 and 11 for a violation of 18 U.S.C. § 1959(a)(3) (Assault with a Dangerous Weapon in Aid of Racketeering) and for a violation of 18 U.S.C. § 924(c)(1)(A) (Discharge of a Firearm During and in Relation to a Crime of Violence or Drug Trafficking Crime), respectively.
U. S. Attorney Evans 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 case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This second superseding indictment is the culmination of a long federal grand jury investigation that was conducted with the assistance of the Federal Bureau of Investigation, the New Orleans Police Department, the New Orleans District Attorney’s Office, and the United States Attorney’s Office for the Eastern District of Louisiana. The case is being prosecuted out of the Violent Crime Unit by Assistant United States Attorneys David Haller, Inga Petrovich and Liz Privitera.
Postal Employee Charged with Theft of MailRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans, announced that HAROLD SAINTES, JR. age 52, of Franklin, Louisiana was charged on August 23, 2021 in a one count Bill of Information with Theft of Mail.
According to court documents, the Office of Inspector General for the United States Postal Service initiated an investigation into SAINTES and determined that he was stealing packages from the Loranger Post Office from September 1, 2019 through October 19, 2019.
U.S. Attorney Duane A. Evans reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. If convicted, SAINTES faces a maximum penalty of five (5) years imprisonment, followed by up to three (3) years of supervised release, up to a $250,000 fine, and a mandatory $100.00 special assessment fee.
U.S. Attorney Duane A. Evans praised the work of the U.S Postal Inspection Service, Office of Inspector General in investigating this matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
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Marrero Man Pleads Guilty to Straw Purchase of FirearmRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BORIS GORDON, age 24 of Marrero, pled guilty on August 19, 2021 to making a false statement during the purchase of a firearm, in violation of Title 18, United States Code, Sections 922(a)(6) and 924(a)(2).
According to court documents, on December 30, 2015, GORDON falsely stated to a federally licensed firearm dealer that he was the actual purchaser of a Glock Model 21, .45 caliber semi-automatic pistol, when he knew that he was not the actual buyer.
GORDON faces a maximum term of imprisonment of 10 years. A fine of up to $250,000 may also be imposed. GORDON may be placed on supervised release after imprisonment for a period of up to 3 years. Additionally, a mandatory $100 special assessment fee will be assessed. U.S. District Court Judge Ashe set sentencing for December 9, 2021.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Duane A. Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
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New Orleans Man Pleads Guilty to Heroin and Cocaine ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JOHNNY TRIPLETT, age 33 of New Orleans, pled guilty on August 19, 2021 to conspiracy to distribute and to possess with intent to distribute more than 500 grams of cocaine hydrochloride and 100 grams of heroin.
According to court documents, TRIPLETT and others conspired to transport cocaine hydrochloride and heroin between Texas and New Orleans.
TRIPLETT faces a minimum term of imprisonment of 5 years and a maximum term of 40 years of imprisonment. A fine of up to $5,000,000 may also be imposed or the greater of twice the gross gain to the defendant or twice the gross loss to any person. TRIPLETT will be placed on supervised release after imprisonment for a period of not less than 4 years. Additionally, a mandatory $100 special assessment fee will be assessed. U.S. District Court Judge Fallon set sentencing for November 19, 2021.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Duane A. Evans praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorneys Elizabeth Privitera and Jonathan L. Shih are in charge of the prosecution.
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Honduran Man Sentenced for Illegal Use of a Social Security NumberRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that EVER JIMINEZ-MENDOZA, age 33, a citizen of Honduras, was sentenced on August 17, 2021 before United States District Court Judge Wendy Vitter, after previously pleading guilty to a one-count indictment for illegal use of a Social Security number in violation of Title 42, United States Code, Section 408(a)(7)(B).
Judge Vitter sentenced JIMINEZ-MENDOZA to time served and was ordered to pay a mandatory special assessment of $100.
According to court documents, on or about October 20, 2017, JIMINEZ-MENDOZA, presented a false social security number when attending a pre-employment safety class at the Gulf Coast Safety Council in St. Rose, Louisiana. JIMINEZ-MENDOZA falsely represented that a social security number was assigned to him when in fact, the social security number has been assigned by the Commissioner of Social Security to another individual.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
New Orleans Man Sentenced to 100 Months for Armed Bank RobberyRead the Press Release
NEW ORLEANS, LOUISIANA – On August 19, 2021, United States District Judge Eldon E. Fallon sentenced JIMMIE POWELL, age 28, to 100 months in the Bureau of Prisons for armed bank robbery, in violation of Title 18, United States Code, Sections 2113(a) and 2113(d), announced U.S. Attorney Duane A. Evans.
On June 25, 2020, POWELL entered the Chase Bank at 1425 North Broad Street in New Orleans. He brandished a firearm at bank employees and took over $52,000 of U.S. currency. POWELL was charged on July 24, 2020 and pled guilty on May 13, 2021 to the one count indictment. Judge Fallon sentenced POWELL to 100 months for that armed bank robbery and he was ordered to pay $52,000 in restitution. Additionally, the Court imposed three years of supervised release upon release from imprisonment and a mandatory $100 special assessment cost.
This case was brought as part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence- based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U. S. Attorney Duane A. Evans praised the work of the Federal Bureau of Investigations and the New Orleans Police Department. The prosecution was handled by Assistant United States Attorney Melissa Bücher.
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New Orleans Man Pleads Guilty to a Firearm ViolationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on Wednesday, August 18, 2021, CHRISTOPHER ARANA, age 27, a resident of New Orleans, Louisiana plead guilty in a one-count Indictment charging him with Possession of a Firearm by a Convicted Felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
On August 20, 2020, New Orleans Police Department (“NOPD”) officers were dispatched to a call for service regarding an aggravated battery by shooting in the 1700 block of Eagle Street, New Orleans, Louisiana. The responding NOPD officer was informed that ARANA sustained a gunshot wound to his abdominal area and was transported to a nearby hospital for medical treatment.
The responding officer requested that Real Time Crime Cameras located in the immediate vicinity of the corner store be reviewed to learn what happened during the shooting. While reviewing the camera footage, the officer observed ARANA arrive at the intersection of Eagle Street and Hickory Street on a bike and stand near the entrance of the store. While standing near the door, ARANA was utilizing his cellular telephone. ARANA observed a vehicle approaching him. The occupants of the vehicle, armed with firearms, began to discharge their firearms at ARANA. ARANA retrieved a fully concealed black semiautomatic handgun from his waistband area during the shooting but did not discharge his firearm. After the shooting, ARANA relocated inside the corner store and discarded the firearm to hide firearm from law enforcement.
After the shooting, a store employee recovered the firearm possessed by ARANA, a black Smith and Wesson, model SD40 VE, .40 caliber PISTOL. The firearm contained ten live rounds, one in the chamber, and nine in the magazine.
ARANA is a convicted felon and is prohibited from possessing firearms and ammunition.
ARANA faces a maximum sentence of 10 years imprisonment, a fine up to $250,000.00, a period of supervised release up to 3 years, and a mandatory special assessment fee of $100.00.
United States District Court Judge Jane Triche Milazzo will sentence ARANA on November 24, 2021.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
New Orleans Man Found in Possession of Machine Guns SentencedRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on Thursday, August 19, 2021, that LLOYD WASHINGTON, age 26, a resident of New Orleans, Louisiana was sentenced on August 19, 2021 to 120 months in the Bureau of Prisons after pleading guilty to a three-count Indictment. In Count 1, WASHINGTON was charged with Possession of Firearms and Ammunition by a Convicted Felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). In Count 2, WASHINGTON was charged with Possession of Machine Guns in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2). In Count 3, WASHINGTON was charged with Possession of Non-Registered Firearms in violation of Title 26, United States Code, Sections 5841, 5861(d), and 5871.
United States District Court Judge Carl Barbier sentenced WASHINGTON to 120 months for each count of the Indictment. Counts 1, 2, and 3 will run concurrent with one another. Upon release, WASHINTON will be supervised by U.S. Probation for a period of three years. The Court did not impose a fine.
On July 20, 2020, New Orleans Police Department (“NOPD”) officers were dispatched to a call for service regarding an illegal discharge of a firearm in the 4100 block of Eagle Street, New Orleans, Louisiana. Residents who lived next door to WASHINGTON reported a bullet entering their residence. No residents were struck by the bullet. Responding officers observed the trajectory of the points of entry and exit and concluded that the bullet likely originated from WASHINGTON’s residence.
Upon arriving at WASHINGTON’s residence, officers observed WASHINGTON standing inside of the residence. WASHINGTON was detained while officers conducted their investigation.
While searching the exterior of WASHINGTON’s residence, officers discovered two firearms with loaded with magazines: a Ruger, model LCP, .380 caliber pistol, bearing serial number 371320740; and a Glock, model 22, .40 caliber pistol, bearing serial 00841MPD and equipped with a Glock switch converter. The firearms were located on the top of a slab of concrete. Officers also observed a black bag containing a third weapon, a Zastava, model PAP M92 PV, 7.62x39 caliber pistol, bearing serial number M92PV068277, loaded with two magazines taped together.
Officers elected to interview WASHINGTON. WASHINGTON admitted that he was in possession of a firearm and that the firearm accidentally discharged while in his possession. When asked about the three firearms located in the alley of his residence, WASHINGTON admitted that he owned and maintained possession of the firearms. When asked if he possessed additional firearms, WASHINGTON admitted that he was in possession of additional firearms inside of his residence.
NOPD obtained a search warrant for WASHINGTON’s residence. During the search of the residence, the following items, including firearms and ammunition, were located: (1) a .40 caliber magazine with 4 live rounds of ammunition; (2) a box of .38 special ammunition containing 9 live rounds; (3) a box of .380 caliber ammunition containing 7 live rounds; (4) one 7.62x39mm magazine with an unknown number of live rounds; (5) one clear plastic bag containing multiple caliber rounds of ammunition; (6) a red duffle bag containing a rifle scope and a pistol grip; (7) a Glock, model 17, 9mm caliber pistol, bearing serial number BHBZ225; (8) a Glock switch convertor; (9) a box with live 9mm rounds; (10) a 7.62x39mm circle drum loaded with an unknown number of live rounds; (11) a box with 13 live 9mm rounds; (12) a Plainfield Machine Co., Paratrooper, .30 caliber rifle, bearing serial number 43211; (13) an Izhmash, model IJ70-17A, .380 caliber pistol, bearing serial number BTK3233; (14) a Heritage Mfg. Inc. model Rough Rider, .22 caliber pistol, bearing serial number R36814; and (15) a Taurus, model PT24/7 G2, .40 caliber pistol, bearing serial number SIM30213.
WASHINGTON is a convicted felon and is prohibited from possessing firearms and ammunition.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Lafourche Parish Man Sentenced to Ten Years Imprisonment for Federal Drug Distribution ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – MONTRELL CLEVELAND, age 34, a resident of Raceland, Louisiana, was sentenced to 120 months’ imprisonment, 5 years of supervised release, and was ordered to pay $400.00 in special assessment fees by U.S. District Judge Carl J. Barbier after pleading guilty to four counts of a fourteen-count indictment charging him with several narcotics offenses, including conspiring to distribute and possess with intent to distribute fifty kilograms or more of methamphetamine and use of a communication facility to facilitate a drug trafficking crime, announced U.S. Attorney Duane A. Evans.
According to court documents, beginning in January 2018, Special Agents with the Drug Enforcement Administration made two controlled purchases of more than 50 grams of methamphetamine each from Kendall Mathews. After making the controlled purchases, agents obtained court ordered wiretaps of Mathews’s and co-conspirators’ telephones and intercepted numerous calls between Mathews, his co-conspirators including CLEVELAND, and customers in which they negotiated the sales of methamphetamine, cocaine hydrochloride, and heroin. Through their continued monitoring of telephone calls, agents identified a pending narcotics transaction and seized two kilograms of cocaine hydrochloride. Also, agents and officers obtained search warrants for co-conspirators’ residences and seized approximately 148 grams of heroin and 1,300 grams of a mixture or substance containing methamphetamine.
This prosecution was part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Drug Enforcement Administration, Office of Homeland Security Investigations, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. The prosecution was handled by Assistant United States
Firearm Discovered During Jefferson Parish Traffic Stop Results in 37 Month Sentence for Convicted FelonRead the Press Release
NEW ORLEANS – The United States Attorney’s Office for the Eastern District of Louisiana announced today that TERRELL RICHARDSON (“RICHARDSON”), age 37, of Westwego, Louisiana, was sentenced to thirty-seven (37) months imprisonment by United States District Court Judge Martin L. C. Feldman for being a prohibited person in possession of a firearm. Additionally, RICHARDSON was ordered to serve three (3) years of supervised release and pay a $100 mandatory special assessment fee.
According to court documents, Jefferson Parish Sheriff’s deputies stopped RICHARDSON after he committed a traffic violation on N. Causeway Blvd. in Metairie, Louisiana. Law enforcement smelled marijuana and proceeded to search RICHARSON’s vehicle. They discovered a reportedly stolen and loaded, SCCY Industries Model CPX-2, nine-millimeter caliber semi-automatic firearm, bearing serial number 192060. RICHARDSON possessed the firearm after having been convicted on January 22, 2002 of a federal felony offense.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This matter was handled by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Duane A. Evans is prosecuting the case.
Six Men Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – ERIC RODRIGUEZ, QUAN LEWIS, CHRIS HABISREITINGER, GREG TRAHAN, TRAVIS GIBSON and RYAN MOREAU were charged on August 13, 2021 in a 7-count superseding indictment by a Federal Grand Jury with narcotics trafficking offenses, including conspiring to distribute and possess with intent to distribute 500 grams or more of methamphetamine, announced U.S. Attorney Duane A. Evans.
The defendants distributed large amounts of methamphetamine throughout Jefferson Parish and surrounding areas for over a year.
If convicted, RODRIGUEZ and LEWIS face a mandatory minimum term of imprisonment of ten (10) years and a maximum of life imprisonment, a fine of up to $10,000,000.00, and at least five (5) years of supervised release following any term of imprisonment. They also face a $100 mandatory special assessment for each count in which they are charged.
GIBSON and MOREAU face a mandatory minimum term of imprisonment of five (5) years and a maximum of life imprisonment, a fine of up to $5,000,000.00, and at least four (4) years of supervised release following any term of imprisonment. They also face a $100 mandatory special assessment for each count in which they are charged.
HABISREITINGER and TRAHAN face up to twenty (20) years imprisonment, a fine of up to $1,000,000.00, and at least three (3) years of supervised release following any term of imprisonment. They also face a $100 mandatory special assessment for each count in which they are charged.
U.S. Attorney Evans reiterated that the superseding indictment is merely a charging document and that the defendants’ guilt must be proven beyond a reasonable doubt.
This case was investigated by the U.S. Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, Kenner Police Department, Orleans Parish Criminal Sheriff’s Office, New Orleans Police Department, and St. John Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorneys Nolan Paige, André Jones, and Melissa Bücher.
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Cleveland, Ohio Man Charged with Producing Files Depicting the Sexual Victimization of Children and Extorting 11-Year-Old Female to Send Sexually Explicit DepictionsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JAVAN BAILEY, age 19, a resident of Cleveland, Ohio, was charged on August 13, 2021 by a federal grand jury sitting in the Eastern District of Louisiana in a two-count Indictment with producing images and videos depicting the sexual exploitation of an eleven-year-old female, Victim 1, in violation of 18 U.S.C. ' 2251(a), and transmitting interstate threats for the purpose of extorting a thing of value, in violation of Title 18, United States Code, Section 875(d). Specifically, BAILEY is alleged to have extorted Victim 1 into sending him additional sexually explicit depictions by threatening to “expose” Victim 1 by sending prior depictions of Victim 1 to her family members.
BAILEY faces a mandatory minimum term of imprisonment of fifteen (15) years and a maximum term of imprisonment of thirty-two (32) years. BAILEY also faces up to a lifetime of supervised release and $250,000 fine. He must also pay a mandatory special assessment cost of $100 for each count. BAILEY can be required to register as a sex offender.
U. S. Attorney Evans 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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
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Marrero Man Pleads Guilty to Conspiring to Stage Automobile Accidents in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that DEWAYNE COLEMAN (“COLEMAN”), age 22, of Marrero, Louisiana, entered a plea of guilty today to Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans.
According to today’s guilty plea, COLEMAN, along with his co-defendants, Erica Lee Thompson (“Erica Lee”), Donisha Lee, Donreion Lee, and Aisha Thompson, conspired to commit mail fraud in connection with a staged accident with Cornelius Garrison, occurring on September 6, 2017. Today’s guilty plea brings the total number of defendants convicted in “Operation Sideswipe” to twenty-seven (27).
COLEMAN admitted that on September 6, 2017, on the I-10 near the Almonaster exit, he was a passenger in co-defendant Erica Lee’s 2015 RAV4 being driven by their former co-defendant, when he intentionally crashed into a tractor-trailer owned by Averitt Express. After the staged accident, the driver exited the RAV4 and told Erica Lee to get behind the wheel of the RAV4 to make it appear that Erica Lee was driving the vehicle at the time of the staged accident. The defendants contacted the NOPD and falsely claimed that Erica Lee was the driver at the time of the collision. COLEMAN retained counsel and made a claim for damages. The total settlement for the Averitt accident was $30,000.
On March 26, 2019, COLEMAN, Donisha Lee, and Donreion Lee each provided false testimony in depositions taken in conjunction with the Thompson Lawsuit. On April 9, 2019, Aisha Thompson provided false testimony in a deposition taken in conjunction with the Thompson Lawsuit. In these depositions, COLEMAN, Donisha Lee, Donreion Lee, and Aisha Thompson lied about the September 6, 2017 accident including, but not limited to, who was driving the RAV4 and the extent of their injuries.
COLEMAN faces a maximum sentence of five (5) years of incarceration. Upon release from prison, COLEMAN also faces a term of supervised release up to (3) three years, and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571, and a mandatory $100 special assessment fee. Sentencing in this matter is scheduled for January 5, 2022, before United States District Judge Sarah S. Vance.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward J. Rivera; Assistant U.S. Attorney Shirin Hakimzadeh; Assistant U.S. Attorney Maria Carboni; and Assistant U.S. Attorney Brandon Long.
City of New Orleans Assistant Chief Mechanical Inspector Pleads Guilty to Using an Interstate Facility with Intent to Carry Unlawful ActivityRead the Press Release
NEW ORLEANS, LA – The U.S. Attorney’s Office announced today that BRIAN MEDUS, 44, of Covington, pleaded guilty as charged to violating Title 18, United States Code, Sections 371 and 1952(a)(3), conspiracy to use an interstate facility with intent to carry on unlawful activity.
According to Court documents, MEDUS, the Assistant Chief Mechanical Inspector for the City of New Orleans, Safety and Permits Department, solicited and accepted bribe money from James Mohamad, the Director of the Department of Inspection and Code Enforcement for the City of Kenner, in return for the issuance of fraudulent permits for Mohamad’s HVAC jobs. Throughout the course of the conspiracy, Mohamad paid MEDUS and others approximately $93,000 to further the bribery scheme. MEDUS utilized cell phones and the City of New Orleans’ internet-based LAMA system, facilities of interstate commerce, to further the scheme. LAMA is the City of New Orleans system for tracking code enforcement and permitting actions.
MEDUS faces a maximum term of imprisonment of five (5) years, a fine of not more than $250,000, a maximum of three years supervised release following any term of imprisonment, and a mandatory $100 special assessment fee. Sentencing is scheduled for November 17, 2021.
“The FBI is committed to aggressively pursuing those who violate the trust placed in them by the public and holding them accountable for their actions. Today’s guilty plea sends a clear message that individuals like Mr. Medus who engaged in a bribery scheme, will be held responsible,” said Douglas A. Williams, Jr. FBI New Orleans Special Agent in Charge. “I would like to thank the City of New Orleans Office of the Inspector General, the Metropolitan Crime Commission, and the U.S. Attorney’s Office for their partnerships in helping the FBI disrupt public corruption in Louisiana."
Ed Michel, Interim Inspector General, City of New Orleans, stated “The New Orleans OIG will continue to ensure employees who utilize their public office for personal gain are held accountable for their actions.”
The United States Attorney’s Office, Eastern District of Louisiana, stated that “Public trust in government institutions is essential for a healthy, functioning government. Any felonious breach of trust damages the very institutions designed to protect citizens from such hazards. Our office will continue partnering with local, state and federal investigative agencies to prosecute public corruption that compromises our institutions.”
This matter was investigated by the Federal Bureau of Investigation and the City of New Orleans/Office of Inspector General. Assistance was provided by the Louisiana State Licensing Board for Contractors. Assistant United States Attorney Tracey N. Knight is prosecuting the matter.
Woman Pleads Guilty to Lying on Passport ApplicationRead the Press Release
NEW ORLEANS – U.S. Attorney Duane Evans announced today that THERESA WOOD (“WOOD”) pled guilty as charged on August 5, 2021 to count one of an indictment for false statements in a passport application in violation of Title 18, United States Code, Section 1542 before U.S. District Judge Eldon E. Fallon.
According to papers signed by WOOD, she made an application for a U.S. passport for her minor child using information belonging to another individual. It is a crime to lie on a passport application. WOOD convinced a co-worker, who resembled the father of her minor child, to fraudulently claim to be the father at the signing of the application before a notary. The application would then be submitted to the State Department. WOOD faces a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment cost on the false statement charge. Sentencing is set for November 18, 2021.
U.S. Attorney Evans praised the work of the United States Diplomatic Security Service of the State Department in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
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New Orleans Woman Pleads Guilty to Bank Larceny in Theft of over $200,000 Using Patient Information Stolen from Metairie Medical ClinicRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that ASHLEY GREEN, age 41, pled guilty as charged on August 4, 2021, to a one count Bank Larceny Bill of Information. Her co-defendants, Brandon Livas, age 34 and Royale Lassai, age 29, both from New Orleans, Louisiana pled guilty as charged in July 2019 to a one count Bill of Information with Bank Larceny, a violation of Title 18, United States Code, Section 2113(b).
In papers filed with the court signed by GREEN, she admitted that Lassai was employed in a Metairie, Louisiana medical clinic. Lassai, without authority, obtained personal information of patients including dates of birth, social security numbers and addresses. Lassai sold the information to her cousin, GREEN, who used this information to fraudulently obtain debit cards issued by the victim banks, Capital One and Whitney. These fraudulently obtained cards were mailed to an address controlled by GREEN. GREEN and Livas then used the cards to withdraw at least $200,000 from the victims’ accounts. Lassai was paid at least $1,000 to pilfer the patient’s information.
GREEN faces up to ten (10) years incarceration, a $250,000 fine, restitution and up to three (3) years supervised release. GREEN must pay a mandatory $100 special assessment cost. Sentencing is set for December 8, 2021.
U.S. Attorney Duane Evans praised the work of the Jefferson Parish Sheriff’s Office and the United States Postal Inspection Service, in investigating the matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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New Orleans Resident Pleads Guilty to Conspiring to Distribute Cocaine and Crack in the ‘Goose’ Area of New Orleans EastRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that JOSEPH BROWN, age 45, a resident of Orleans Parish plead guilty today to conspiring to distribute 500 grams or more of cocaine and 28 grams or more of crack. BROWN is facing a sentence of five to forty years of imprisonment, a fine of up to $5,000,000, and at least four years of supervised release upon his release from prison. BROWN also faces a $100 mandatory special assessment cost.
According to court records, BROWN and four others, Lionel Cooley, Kendrick Demourelle, Kevin Gray, and Blake Monroe, conspired to sell illegal narcotics in New Orleans, including using a broken-down yellow school bus in the ‘Goose’ neighborhood in New Orleans East as a stash house. All five were indicted in February 2020, and, according to court records, a seized GMC Sierra pickup truck used by a member of this conspiracy contained nearly two kilograms of cocaine and 430 grams of crack. The evidence against BROWN includes numerous intercepted communications, physical and video surveillance, seized drugs, and witness statements. U.S. District Judge Wendy Vitter will sentence BROWN on November 5, 2021.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, Hammond Police Department, New Orleans Police Department, and Slidell Police Department in investigating this matter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
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Montz Woman Pleads Guilty to Theft of Social Security Retirement Survivor Insurance Program FundsRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that IGEL CASANOVA GIBBINS (“GIBBINS”), age 44, of Montz, Louisiana, pled guilty today to Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
The case against IGEL CASANOVA GIBBINS (“GIBBINS”) began after the State of Louisiana complied with a request from the Social Security Administration (“SSA”) to provide the SSA with death data of approximately 1.6 million Social Security number holders who had died in Louisiana from January 1, 1979, through December 31, 2019. As part of that data, the State of Louisiana disclosed that D.C., a participant in the SSA’s Retirement Survivor Insurance program (“RSI Program”), died on or about August 16, 2012.
Unaware of D.C.’s death, the SSA erroneously released approximately $202,417.00 in RSI Program funds from August 2012 through December 2020, via automatic wire transfers (i.e., direct deposit) to D.C.’s jointly held Capital One Bank (“Capital One”) account. GIBBINS, D.C.’s daughter, was a joint account holder of the Capital One account. D.C.’s RSI Program benefits were not transferrable to GIBBINS. Following the automatic deposit of RSI Program benefits, GIBBINS accessed the funds and wrongfully converted the funds to her own personal use, depleting nearly all account funds. The funds were used on purchase transactions or transfers out of the account to pay bills, for example, such as for mortgage payments and vehicle loan payments. GIBBINS never advised the SSA of D.C.’s death.
The SSA determined that GIBBINS fraudulently obtained $200,396 in SSA disability benefits from her father’s Capital One Bank account.
GIBBINS faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment. Sentencing in this matter is scheduled for November 16, 2021, before United States District Judge Jay C. Zainey.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit and Assistant U.S. Attorney Paige O’Hale.
Bill of Information Filed Against Postal Worker for Misappropriating FundsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced SHANNEL SMITH, age 41, of Orleans Parish, Louisiana, was charged on August 10, 2021 in a one-count bill of information for misappropriating postal funds in violation of Title 18, United States Code, Section 1711.
According to court documents, beginning in October 2018 and continuing until August 2019, SMITH, being an officer and employee of the United States Postal Service, did knowingly and willfully convert to her own use money and property coming into her hands and under her control in any manner, in the execution and under the color of her office, employment, and service, of a value in excess of $1,000.00, that is, approximately $1,205.71 in postal money orders.
If convicted, SMITH faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a $100 mandatory special assessment fee and a maximum fine of $250,000.00, based on the charge outlined in the bill of information.
U.S. Attorney Evans stated that the bill of information is merely a charge and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by special agents from the U.S. Postal Service, Office of Inspector General (“USPS-OIG”). The prosecution of this case is being handled by Assistant U.S. Attorney Rachal Cassagne.
New Orleans Man Sentenced for Wire FraudRead the Press Release
NEW ORLEANS, LOUISIANA – JASON PICK, age 40, a resident of New Orleans, Louisiana, was sentenced on August 5, 2021 for committing wire fraud in violation of Title 18, United States Code, Section 1343 announced U.S. Attorney Duane A. Evans. The Honorable Eldon Fallon sentenced PICK to 2 months incarceration, 10 months of home detention, 2 years of supervised release, a mandatory $100 special assessment fee and payment of $140,791.21 in restitution.
According to court documents, PICK was employed as an accountant for Company A between August 2016 and June 2018. Part of PICK’s duties was handling the credit card accounts of Company A. Without authorization, PICK used Company A’s credit cards for his own personal expenses. In total, PICK stole approximately $140,791.21 from Company A.
U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Chief of the General Crimes Unit.
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New Orleans Man Sentenced for Possessing a Gun in Furtherance of Drug DealingRead the Press Release
NEW ORLEANS, LA – United States District Judge Sarah S. Vance sentenced ASHONTI HALL, 31, of New Orleans, Louisiana, on August 5, 2021 to 60 months in the Bureau of Prisons for possessing a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c), announced U.S. Attorney Duane A. Evans.
In October 2019, HALL was indicted for possessing heroin, cocaine base, cocaine, and marijuana with the intent to distribute, being a felon in possession of a firearm, and possessing a firearm in furtherance of drug trafficking.
Court documents show that HALL admitted that he fled from New Orleans Police Department Officers who were investigating HALL for a shooting that occurred the previous day. The police caught HALL and found him with a backpack that contained several different types of drugs, scales, cash, and a loaded gun.
District Judge Vance sentenced HALL to the mandatory minimum term of 5 years imprisonment to be followed by three years of supervised release. She also ordered that he pay a mandatory $100 special assessment fee.
U. S. Attorney Evans praised the work of the New Orleans Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Drug Enforcement Administration in investigating this matter. The case is being prosecuted by Assistant United States Attorney David Haller.
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New Orleans Man Admits to Defrauding Customers Through Bitcoin SalesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MICHAEL YUSKO, III, age 46, a resident of New Orleans, pleaded guilty today to operating an unlicensed money transmitting business before U.S. District Judge Barry W. Ashe.
According to court documents, federal agents received complaints beginning in May 2018 that YUSKO was selling customers bitcoin and other cryptocurrencies but failing to follow through on transactions. YUSKO would promise customers any amount of bitcoin in exchange for U.S. dollars at five percent above market price for a five percent fee. He then directed these customers to deposit U.S. dollars into one of several business bank accounts, among them Nervous Light Capital LLC, Ready Demolition LLC, Patriot Concrete Pumping, LLC, Praetorian Energy, LLC, and Hudson Oak Partners LLC. YUSKO did not register these companies as money transmitting businesses with Financial Crimes Enforcement Network (FinCEN) of the Department of Treasury, and he otherwise did not comply with the regulations of Title 31, United States Code, Section 5330. YUSKO also instructed his clients not to tell any bank employees that the purpose of their wire transfer was to purchase cryptocurrency. Agents have learned that banks frequently shut down accounts used to sell cryptocurrency, and banks had previously shut down YUSKO’s accounts for such activity.
The court documents detail how customers communicated with YUSKO and paid him tens of thousands of dollars for bitcoin. While YUSKO did carry out transactions with many customers, he failed to fulfill other transactions, and then he failed to return the U.S. dollars deposited in his accounts. YUSKO admitted to being responsible for $201,399.00 in losses to victims. As part of his plea, YUSKO agreed to make full restitution.
YUSKO faces a maximum of five years in prison, a maximum $250,000.00 fine, up to three years of supervised release, and a $100 mandatory special assessment. Judge Ashe scheduled YUSKO’s sentencing for November 4, 2021.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation New Orleans Field Office and the U.S. Secret Service New Orleans Field Office. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
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Hospice Facility Owner Indicted for Health Care FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that SHIVA AKULA (“AKULA”), age 65, of New Orleans, Louisiana was charged by a grand jury on August 5, 2021, in a 23-count Indictment for Health Care Fraud.
AKULA owned and oversaw the day-to-day operations of Canon Healthcare, a hospice facility.
According to the Indictment, AKULA unlawfully enriched himself by submitting and causing the submission of false and fraudulent claims to health care benefit programs, including Medicare. AKULA instructed Canon employees to improperly bill for General Inpatient (“GIP”) services to maximize reimbursement from health care benefit programs, knowing that those services were not medically necessary.
Canon routinely billed physician services with Common Procedural Terminology (“CPT”) Code 99233 for beneficiaries who were receiving GIP services, in addition to the daily per diem rate. CPT Code 99233 is an evaluation and management code, which requires two of the three following components: (1) detailed interval history; (2) detailed examination; or (3) medical decision making of a high complexity. Usually, the beneficiary is unstable or has developed a significant complication or a significant new problem.
Canon routinely billed for physician services for CPT Code 99236 for beneficiaries who were admitted into GIP and remained on GIP for more than 24 hours. CPT Code 99236 should only be billed when a patient is admitted to inpatient hospital care for a minimum of 8 hours, but less than 24 hours and discharged on the same calendar day. In addition, when billing for CPT Code 99236, the physician shall identify that he or she was physically present and that he or she performed the initial hospital care service. The physician shall personally document the admission and discharge notes and include the number of hours the beneficiary remained in inpatient hospital status.
From on or about January 1, 2013, to on or about August 25, 2017, Canon submitted approximately 1,053 claims for CPT code 99236 and was paid approximately $223,601 by Medicare. During that same time period, Canon submitted approximately $2,281,251. These physician services reflected in CPT Codes 99236 and 99233 should not have been billed as a separate line item in addition to the GIP services because they were included within the daily per diem rate that Medicare paid for the GIP services.
From on or about January 1, 2013, through on or about August 25, 2017, Canon submitted claims to Medicare for approximately 1,949 home visits using CPT code 99350 that were purported to have been performed by a doctor, when a doctor did not perform home visits. As a result of these 1,949 home visits, Medicare reimbursed Canon approximated $316,384.
From January 2013 to December 2019, Canon billed Medicare approximately $62,833,346.28 and was paid approximately $47,106,838.94.
If convicted, AKULA faces a maximum of 10 years imprisonment, a fine of not more than $250,000, supervised release of up to 3 years, and a mandatory special assessment of $100 as to each count.
U.S. Attorney Evans 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 Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, and the Louisiana Department of Justice, Medicaid Fraud Control Unit. The case is being prosecuted by Assistant U.S. Attorney Kathryn McHugh.
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Houma Man Sentenced for Conspiring to Distribute Heroin, Cocaine, and MethamphetamineRead the Press Release
NEW ORLEANS, LA – United States District Judge Sarah S. Vance sentenced DARREKA BOYKINS, age 44, of Houma, Louisiana, today to 73 months in the Bureau of Prisons for violating the Federal Controlled Substances Act, Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 846, announced U.S. Attorney Duane A. Evans.
According to the court records, BOYKINS conspired to possess with the intent to distribute and to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, a quantity of a mixture or substance containing a detectable amount of cocaine, and a quantity of a mixture or substance containing a detectable amount of methamphetamine. BOYKINS admitted to being captured on a Title III wire intercept.
District Judge Vance sentenced BOYKINS to the 73 months imprisonment to be followed by four years of supervised release. She also ordered that he pay a mandatory $100 special assessment fee.
This case was investigated by Special Agents of the Drug Enforcement Administration (DEA). The prosecution is being handled by Assistant United States Attorney David Haller.
Former Tangipahoa Parish Sheriff’s Office Employee Sentenced for Role in Bribery SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that SONJA DYSON EVANS, 59, of Kentwood, Louisiana, was sentenced on August 4, 2021 by the Honorable Ivan L.R. Lemelle, United States District Court Judge, to a five (5) year term of probation for using an interstate facility with intent to carry on unlawful activity. EVANS was also ordered to pay a $5,000 fine, a $100 special assessment and to perform 100 hours of community service.
EVANS pleaded guilty in March 2021. According to court records, at the time of the offense, EVANS was employed by the Tangipahoa Parish Sheriff’s Office as a Criminal Records Division Supervisor. From January 2016 through January 2017, EVANS, along with a co-defendant, Shawanda Dove, used cell phones to carry out a bribery scheme, in violation of 18 U.S.C. §§ 1952(a)(3) and 2. EVANS solicited and accepted bribe money from Dove in exchange for fraudulent bonds used for the release of incarcerated persons.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Tracey Knight is in charge of the prosecution.
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Texas Man Sentenced After Pleading Guilty to Making a False Statement to Law EnforcementRead the Press Release
NEW ORLEANS, LOUISIANA – EDMOND ARZATE, age 29, a resident of Houston, Texas, was sentenced to one year of probation by U.S. District Judge Jay C. Zainey after pleading guilty to a superseding bill of information charging him with making a false statement to a Special Agent of Homeland Security Investigations in violation of Title 18, United States Code, Section 1001 announced U.S. Attorney Duane A. Evans.
According to court documents, on October 12, 2017, a suspected drug trafficker informed a Homeland Security Investigations confidential source that a money courier would arrive in the Eastern District of Louisiana to collect funds for a previously conducted drug transaction. That evening, ARZATE contacted the source and instructed him to meet at a Waffle House in Mandeville, Louisiana. The source me with ARZATE and provided gave him with $30,000.00 in government funds as payment for the previously conducted drug transaction. ARZATE departed from the area but the Louisiana State Police conducted a traffic stop and obtained the money from his vehicle. A Homeland Security Investigations Special Agent and Louisiana State Police Trooper interviewed ARZATE regarding the money. ARZATE told the officers that he won the money playing poker at a Louisiana casino. When the officers asked if he had any receipts for the winnings, ARZATE changed his story and said he played “underground poker.” ARZATE then changed his story a second time and said he received the money from a “random guy” and provided no further information.
ARZATE faced a maximum term of imprisonment of five (5) years, a fine of up to $250,000.00 and three years of supervised release following any term of imprisonment.
This prosecution was part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Department of Homeland Security-Office of Homeland Security Investigations and the Louisiana State Police. The prosecution was handled by Assistant United States Attorney André Jones.