Eastern District of Louisiana
Press releases recorded for this federal judicial district.
New Orleans Tax Preparer Sentenced to Four Years of Probation for Filing False IRS ReturnRead the Press Release
NEW ORLEANS – DANIELLE FRANKLIN, age 29, and a resident of New Orleans, Louisiana, was sentenced by United States District Court Judge Eldon E. Fallon to four years of probation for assisting in the preparation of a fraudulent tax return, announced U.S. Attorney Duane A. Evans of the Eastern District of Louisiana.
As charged in the indictment, FRANKLIN prepared a false tax return in 2014 for a client of Cutting Edge Income Tax, located on Airline Drive in Metairie, Louisiana. As part of the scheme, FRANKLIN allegedly falsified the return by including fraudulent business losses when in fact the customer had zero losses and expenses. In the Factual Basis that supported the guilty plea, FRANKLIN also admitted to other relevant conduct, which included preparing at least thirty-one (31) false U.S. Individual Income Tax Returns, Forms 1040 for her customers from 2013 through 2016. These fraudulent tax filings caused a tax loss to the United States in the amount of $215,296.43. In addition, FRANKLIN’s 2013, 2014, 2015 and 2016 U.S. Individual/Joint Tax Returns, which were prepared and signed by defendant and filed with the IRS, claimed reported inflated withholdings and/or false estimated tax payments. These material misstatements caused an additional tax loss to the United States in the amount of $14,277.00.
In addition to probation, FRANKLIN was also ordered to pay restitution to the IRS in the amount of $229,573.00.
U.S. Attorney Evans commended the special agents of IRS-Criminal Investigation for their handling of the matter. The case was prosecuted by Assistant United States Attorney Edward J. Rivera.
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New Orleans Man Admits to Possession of Firearm in Furtherance of Drug DealingRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that ASHONTI HALL, 30, of New Orleans, Louisiana, pleaded guilty on March 31, 2021 to possessing a firearm in furtherance of a drug trafficking crime before United States District Judge Sarah S. Vance.
In October 2019, HALL was indicted for possessing heroin, cocaine base, cocaine hydrochloride, 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 as part of his plea, 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 in possession of a backpack that contained several different types of drugs, scales, cash, and a loaded gun.
Sentencing is set for August 4, 2021 before District Judge Vance. HALL faces a sentence of at least five years imprisonment up to life, a $250,000 fine, five years supervised release following any term of imprisonment, and a $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 Conspiring to Deal HeroinRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that ALLEN ROBRTSON, 32, of New Orleans, Louisiana, pleaded guilty on March 31, 2021 before United States District Judge Sarah S. Vance to conspiring to distribute and to possess with the intent to distribute 100 grams or more of heroin.
In November 2019, ROBERTSON was indicted along with numerous other defendants for conspiring to distribute heroin. Court documents show that as part of his plea, ROBERTSON admitted that he was intercepted on wiretaps purchasing heroin and that police found heroin and heroin distribution paraphernalia when he was arrested.
Sentencing is set for August 4, 2021 before District Judge Vance. ROBERTSON faces a sentence of at least five years imprisonment up to forty years, up to a $5,000,000 fine, at least four years supervised release following any term of imprisonment, and a $100 special assessment fee.
U. S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. The case is being prosecuted by Assistant United States Attorney David Haller.
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Houston Man Sentenced for Heroin ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on April 1, 2021, ALEXANDER MURIEL-DIAZ, age 55, of Houston, Texas, was sentenced by United States District Judge Barry W. Ashe after previously pleading guilty to one count of conspiracy to distribute and to possess with intent to distribute more than one kilogram of heroin.
According to court documents, MURIEL-DIAZ and others conspired to distribute and to possess with intent to distribute one kilogram or more of heroin between sometime prior to July 19, 2017 and on or about June 29, 2018.
United States District Court Judge Ashe sentenced MURIEL-DIAZ to 81 months of imprisonment, followed by five years of supervised release. The court also imposed a $100 mandatory special assessment.
U.S. Attorney Duane A. Evans praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Maria Carboni and Jonathan L. Shih were in charge of the prosecution.
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New Orleans Man Sentenced for Embezzlement of Union FundsRead the Press Release
NEW ORLEANS, LA – MARK DOUGLAS, age 72, a resident of New Orleans, Louisiana, was sentenced for embezzlement of union funds by the Honorable Greg G. Guidry, announced U.S. Attorney Duane A. Evans. DOUGLAS was sentenced to 24 months of probation and a $100 special assessment. DOUGLAS was also ordered to pay $7,078.35 in restitution to the United Food and Commercial Workers Local 1101.
According to court documents, between November 11, 2011 and January 17, 2015, DOUGLAS acted as President of the United Food and Commercial Workers Local 1101. DOUGLAS was responsible for the local’s grievances with the Domino Sugar Company and running the day to day operations of the union.
Union officers were permitted to file “lost time” claims to be reimbursed for conducting union business. Lost time is generally taken for arbitrations, attorney visits, accountant visits, or negotiations with Domino Sugar Company. During his time as President, DOUGLAS filed fraudulent “lost time” claims with the union, thereby unlawfully obtaining $7,078.35 that he was not entitled to receive.
U.S. Attorney Evans praised the work of the U.S Department of Labor, Office of Labor-Management Standards, in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Chief, General Crimes.
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Marrero Man, Convicted in 2006 of Child Pornography Possession, Pleads Guilty Again to Possession of Child PornographyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BRADLEY EDWARD CORLEY, age 46, a resident of Marrero, Louisiana, pleaded guilty today before United States District Judge Jay C. Zainey to Count Two of a two-count Indictment charging him with possession of images and videos depicting the sexual exploitation of children, including children as young as approximately four (4) years old, in violation of 18 U.S.C. 2252(a)(4)(B). In 2006, CORLEY was convicted in the United States District Court for the Eastern District of Louisiana of possession of child pornography.
According to court documents, in about September 2019, Special Agents with the Federal Bureau of Investigation (“FBI”) received a tip that an individual, subsequently determined to be CORLEY, had uploaded approximately seven (7) images depicting the sexual exploitation of children to a digital application and distribution platform designed for video gaming communities. Agents executed a search warrant at CORLEY’s residence in March 2020 and seized several electronic devices that contained files depicting the sexual victimization of children. A forensic examination of several of the devices confirmed that CORLEY had used them to search for, download, and save at least 60,000 images and 1,5000 videos depicting the sexual victimization of children, including by visiting a web forum on June 16, 2019, August 4, 2019, and March 9, 2020. The filed depicted children as young as approximately four (4) years old engaging in sexually explicit conduct, including numerous images and videos that portrayed “sadistic or masochistic conduct or other depictions of violence.”
Because of his prior conviction, if convicted in this matter CORLEY faces a mandatory minimum term of imprisonment of ten (10) years and a maximum term of imprisonment of twenty (20) years for the possession charge. CORLEY also faces a lifetime of supervised release, a $250,000 fine, and he can be required to register as a sex offender. Sentencing has been scheduled before Judge Zainey for June 29, 2021.
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 Attorney’s= 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, with support from the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
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Independence Woman Pleads Guilty to Theft of Government FundsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that TIFFANY WALLACE, age 34, of Independence, Louisiana, pled guilty today to theft of government funds in connection with false applications for disaster assistance.
According to court documents, WALLACE submitted falsified applications to the Federal Emergency Management Administration (“FEMA”) for disaster assistance. The applications sought disaster assistance for vehicles that WALLACE claimed were damaged following the March and August 2016 storms and flooding in Tangipahoa Parish. In the application, WALLACE submitted fraudulent repair invoices for $13,935 of vehicle damage from the March 2016 flood and $13,368 for the August 2016 flood, when in fact WALLACE created the fraudulent invoices using fictitious automotive repair shops. As a result of false statements in the applications, FEMA paid disaster benefits of $6,000 and $11,902 for the two floods to WALLACE.
WALLACE faces up to ten years in prison, a fine of up to $250,000, up to three years of supervised release following any term of imprisonment, and a special assessment of $100. Judge Jay C. Zainey set the sentencing hearing for June 29, 2021.
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.
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Covington Man Sentenced for Making a False Declaration in Connection with a BankruptcyRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that PENH KANG (“KANG”), age 42, of Covington, Louisiana, was sentenced today for Making a False Declaration, in violation of Title 18, United States Code, Section 152(3).
According to documents filed in federal court, on or about the 12th day of September 2017, in the Eastern District of Louisiana, KANG, knowingly and fraudulently made a material false declaration, certificate and verification under the penalty of perjury, as permitted under Section 1746 of Title 28, in and in relation to a case under Title 11, In re Pehn Kang, No.17-12431. KANG submitted a Schedules of Assets and Liabilities and a Statement of Financial Affairs, in which the defendant fraudulently answered questions. Additionally, KANG failed to disclose gambling losses of approximately $40,000 to $60,000, an interest in two Capital One Bank accounts, and a $50,000 life insurance policy.
U.S. District Judge Greg G. Guidry sentenced KANG to probation for a term of 24 months.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation and the Office of the U.S. Trustee for the Eastern District of Louisiana 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.
New Orleans Man Pleads Guilty to Conspiracy to Distribute DrugsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MARK RICHBURG, age 40, of New Orleans, pled guilty to conspiracy to distribute cocaine, heroin, and cocaine base.
Specifically, on March 18, 2021, RICHBURG pled guilty to one count of conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine, 100 grams or more of heroin, and a quantity of cocaine base, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), 841(b)(1)(C), and 846.
RICHBURG faces a mandatory minimum sentence of 10 years imprisonment up to life imprisonment, a fine of up to $10,000,000, at least 5 years of supervised release and a mandatory $100 special assessment.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Elizabeth Privitera and Jonathan L. Shih are in charge of the prosecution.
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.
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Former Tangipahoa Parish Sheriff’s Office Employee Pleads Guilty to Bribery SchemeRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that SONJA DYSON EVANS, 58, of Ponchatoula, Louisiana, pled guilty on March 24, 2021 to use of an interstate facility with intent to carry on unlawful activity.
According to the bill of information, 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.
EVANS faces a maximum penalty of five (5) years incarceration, a $250,000 fine, a three (3) year term of supervised release, and a mandatory special assessment of $100.00.
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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Woman Sentenced for Bank RobberyRead the Press Release
NEW ORLEANS, LA – CATHOLINE HAMMETT, age 29, a resident of New Orleans, was sentenced on March 24, 2021 by the Honorable Lance Africk, announced U.S. Attorney Duane A. Evans. HAMMETT was sentenced to 30 months imprisonment, 3 years of supervised release, and a $100 special assessment. The defendant was also ordered to pay $633 in restitution.
According to the indictment, on or about January 8, 2020, HAMMETT entered the Iberia Bank located at 3412 St. Charles, Ave in New Orleans. She handed the teller a note that claimed HAMMETT had a bomb, and demanded money. HAMMETT obtained approximately $633 and left the bank.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation 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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Louisiana Construction Company Owner and Two Employees Indicted for Tax FraudRead the Press Release
WASHINGTON – A federal grand jury in New Orleans, Louisiana, returned an indictment today charging three Louisiana residents with conspiracy to defraud the IRS. One defendant, Matthew Reck, was additionally charged with making a false statement to federal agents, and the other defendants, Dawn Farrell Ruiz and David Farrell, were charged with aiding in the preparation of false returns.
According to the indictment, from 2011 to at least June 2019, Matthew Reck and Dawn Farrell Ruiz, both of St. Tammany Parish, and David Farrell, of Jefferson Parish, allegedly conspired to defraud the IRS by underreporting their individual compensation and causing to be filed false individual tax returns. Further, Reck and Ruiz allegedly caused to be filed false corporate tax returns, relating to SES Construction Consulting Group (SES) and Global Technical Solutions (Global). Reck co-owned the two construction businesses through at least December 2015, and Farrell worked as a project manager and Ruiz as a bookkeeper for both businesses. The indictment further alleges that Reck, Farrell, and Ruiz paid some workers “off the books” in cash and did not report the workers’ full compensation to the IRS. When federal agents from IRS-Criminal Investigation subsequently interviewed Reck, he allegedly falsely stated that he had no communications with the accountant for SES and Global regarding the preparation of the companies’ corporate tax returns.
The defendants are scheduled for their initial court appearance on April 9, 2021 in the U.S. District Court for the Eastern District of Louisiana. If convicted, they face a maximum penalty of five years in prison on the conspiracy charge. Reck also faces a maximum of five years in prison on the charge of making false statements to federal agents, and Farrell and Ruiz face a maximum of three years in prison on each of the charges of aiding in the preparation of a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and the U.S. Attorney’s Office for the Eastern District of Louisiana made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys William Montague and Parker Tobin of the Justice Department’s Tax Division and Assistant U.S. Attorney Nicholas Moses 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.
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Lafourche Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that on March 23, 2021, JAVANTI COLER, age 25, a resident of Lafourche Parish, Louisiana, was sentenced to serve 57 months in the custody of the United States Bureau of Prisons. When he is released from prison, he will be on supervised release for a period of three years. COLER pled guilty back on December 8, 2020 to being a felon in possession of a firearm.
His co-defendant Deondre Gramma, age 26, also a resident of Lafourche Parish, Louisiana, who also pled guilty to bring a felon on possession of a firearm will be sentenced later this month.
Back on April 27, 2018, COLER and Gramma were passengers in a car that was pulled over for a traffic violation in Lafouche Parish. As the officers were issuing a ticket to the driver, Gramma, who was the front seat passenger leaped from the car and tried to escape. When he was caught by the police after a brief foot chase, they located a loaded firearm in his waistband. This incident was captured on the officer’s body worn camera. Other officers observed COLER, who was the backseat passenger, exit the back seat and attempt to discard a loaded semi-automatic handgun in the high grass on the side of the road. A DNA swab of the gun was later compared to COLER’S DNA with a positive match. A criminal history check of both COLER and Gramma revealed that they were both convicted felons.
The case was investigated by the Lafourche Parish Sheriff’s Office, the Thibodeaux Police Department, The Lafourche Parish District Attorney’s Office, and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (A.T.F.). Assistant United States Attorney Maurice Landrieu is in charge of the prosecution.
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Houma Man Indicted for Production and Distribution of Child PornographyRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today the unsealed Indictment of STEVE C. MERGEY, age 51, of Houma, Louisiana, who was charged on Friday, March 19, 2021, in a two-count federal indictment for Production and Distribution of Child Pornography, in violation of Title 18, United States Code, Sections 2251(a) and (e) and 2252(a)(2) and (b)(1) respectively. If convicted, MERGEY faces a mandatory minimum sentence of fifteen (15) years and a maximum sentence of thirty (30) 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 under Title 18, United States Code, Section 3571. In addition, MERGEY faces a term of supervised release of no less than five (5) years and up to life after his release from prison.
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.
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 Attorney’s 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.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the U. S. Department of Homeland Security, Houma RAC and Pittsburg Office; Terrebonne Parish Sheriff’s Office; Houma Police Department; Louisiana State Police, Criminal Investigative Division; and Oswego County Sheriff’s Office, NY 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.
Hollygrove Man Sentenced to 87 Months for Selling NarcoticsRead the Press Release
NEW ORLEANS, LA – On March 24, 2021, United States District Judge Jane Triche Milazzo sentenced COREY JOHNSON, age 30, a resident of New Orleans, to 87 months in the Bureau of Prisons for conspiring to distribute and possess with the intent to distribute a quantity of heroin and cocaine base, in violation of Title 18, United States Code, Sections 841 and 846. JOHNSON will be on Supervised Release for three years following his release from prison. Additionally, JOHNSON was sentenced to pay an $100 special assessment fee.
JOHNSON pleaded guilty on December 30, 2020, to conspiring to distribute heroin and cocaine base with members of a drug trafficking organization based in the Hollygrove neighborhood of New Orleans, Louisiana, that operated in and around a corner grocery store. JOHNSON was intercepted multiple times on an FBI wiretap arranging to sell heroin and cocaine base to people seeking narcotics.
U. S. Attorney Evans praised the work of the Federal Bureau of Investigation’s New Orleans Gang Task Force. The prosecution is being handled by Assistant United States Attorneys Myles Ranier and Kathryn McHugh.
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Houston Man Sentenced for Heroin ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on March 18, 2021, CARLOS ALBERTO GONZALES VALENCIA, age 38, of Houston, Texas, was sentenced by United States District Judge Barry W. Ashe after previously pleading guilty to one count of conspiracy to distribute and to possess with intent to distribute more than one kilogram of heroin.
According to court documents, VALENCIA and others conspired to distribute and to possess with intent to distribute one kilogram or more of heroin between sometime prior to July 19, 2017 and on or about June 29, 2018.
United States District Court Judge Ashe sentenced VALENCIA to 57 months of imprisonment, followed by two years of supervised release. The Court also imposed a $100 mandatory special assessment.
U.S. Attorney Duane A. Evans praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Maria Carboni and Jonathan L. Shih were in charge of the prosecution.
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Houston Man Sentenced for Heroin ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on March 18, 2021, HARVEY VICTORIA-CUELLAR, age 41, of Houston, Texas, was sentenced by United States District Judge Barry W. Ashe after previously pleading guilty to one count of conspiracy to distribute and to possess with intent to distribute more than one kilogram of heroin.
According to court documents, VICTORIA-CUELLAR and others conspired to distribute and to possess with intent to distribute one kilogram or more of heroin between sometime prior to July 19, 2017 and on or about June 29, 2018.
United States District Court Judge Ashe sentenced VICTORIA-CUELLAR to 78 months of imprisonment, followed by three years of supervised release. The Court also imposed a $100 mandatory special assessment.
U.S. Attorney Duane A. Evans praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Maria Carboni and Jonathan L. Shih were in charge of the prosecution.
Honduran National Pleads Guilty and is Sentenced for Illegal Re-EntryRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced today that Miguel Angel Solorzano-Dominguez, age 34, pleaded guilty and was sentenced today on a one-count indictment. He was charged by a Grand Jury in March 2020 with illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
After accepting Solorzano-Dominguez guilty plea, U.S. District Judge Mary Ann Vial Lemmon sentenced Solorzano-Dominguez to time served and a $100 special assessment fee. Solorzano-Dominguez has been incarcerated since February 1, 2020. The defendant will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to documents signed by the defendant and filed in open court, Solorzano-Dominguez admitted to being a citizen of Honduras, and being illegally present in the United States. He further admitted to illegally re-entering the United States after being deported July 9, 2010.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security and the New Orleans Police Department in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Tangipahoa Parish Man Sentenced for Violating the Federal Controlled Substances Act and the Gun Control ActsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that REDIS MCGARY, age 53, a resident of Tangipahoa Parish, was sentenced on March 17, 2021 by United States District Judge Ivan L.R. Lemelle after previously pleading guilty to a two-count Bill of Information with possessing with the intent to distribute heroin and with being a convicted felon in possession of firearms.
According to court documents, on October 7, 2020, MCGARY pled guilty to Count One of the Bill of Information, which charged him with possession with the intent to distribute 100 grams or more of heroin and Count Two, which charged him with possession of a .38 special/357 Mag Derringer pistol and a .22 caliber Derringer pistol. MCGARY had previously been convicted of a felony offense punishable by more than 1 year of imprisonment in the Tangipahoa Parish Criminal District Court.
For Count One, Judge Lemelle sentenced MCGARY to 64 months of imprisonment, 4 years of supervised release, and a $100 special assessment. For Count Two, Judge Lemelle sentenced MCGARY to 64 months of imprisonment, 3 years of supervised release, and a $100 special assessment. Both sentences are to be served concurrently.
The case was investigated by the U.S. Drug Enforcement Administration, the Tangipahoa Parish Sheriff’s Office, and the Hammond Police Department. Assistant United States Attorney Bayonle Osundare was in charge of the prosecution.
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New Orleans Woman Charged with Social Security Fraud Spanning More Than Three DecadesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BETTY ARRINGTON a/k/a “Betty Callie Arrington,” a/k/a “Betty Francis C Miller,” a/k/a “Betty Miller” (“ARRINGTON”), age 72, a resident of New Orleans, Louisiana, was charged on March 19, 2021 with theft of government funds.
According to the Indictment, ARRINGTON engaged in a 35-year multifaceted scheme to defraud the Social Security Administration (“SSA”). From 1984 through 2019, ARRINGTON intentionally used a Social Security number (“SSN”) not assigned to her by the Commissioner of the SSA in order to conceal her earnings from employment in the New Orleans area. ARRINGTON’s fraudulent use of a SSN, in addition to the concealment of program eligibility factors and the intentional submission of false statements to SSA, aided ARRINGTON in fraudulently gaining and maintaining Supplemental Security Income Disability benefits totaling approximately $164,270.90.
ARRINGTON is charged in the Indictment with one count of theft of government funds, in violation of Title 18, United States Code, Section 641. The maximum penalties that may be imposed upon conviction are up to ten years imprisonment; a fine of $250,000; up to three years of supervised release; and a $100 mandatory special assessment.
U.S. Attorney Duane A. Evans praised the work of the Social Security Administration Office of Inspector General for its work in investigating this case. U.S. Attorney Evans reiterated that an Indictment is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorney Shirin Hakimzadeh.
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Bank Teller Indicted on Federal Fraud ChargesRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today the Indictment of KAREN FARRELL TIGLER, age 34, of Harvey, Louisiana, who was charged on Friday, March 19, 2021, in a twelve-count federal indictment for Bank Fraud, Making False Statements to Federal Agents, and Making and Subscribing False Tax Returns, in violation of Title 18, United States Code, Sections 1344 and 1001(a)(2) and Title 26, United States Code, Section 7206(1) respectively. If convicted, TIGLER faces a maximum term of thirty (30) years imprisonment and/or a fine of $1,000,000.00 or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense under Title 18, United States Code, Section 3571. In addition, TIGLER faces a term of supervised release up to five (5) years after her release from prison.
According to today’s Indictment, from January 1, 2013, to November 14, 2016, TIGLER was employed as a multi-service banker with the Hancock Whitney Bank. TIGLER worked at the Whitney branch, also known as the “Morgan State Branch,” located at 430 Chartres Street, New Orleans, LA. Client A was in her mid-80s in 2015 and 2016 and was a banking customer of Whitney. From February 9, 2015, to October 28, 2016, approximately 100 counter checks totaling approximately $349,556 were processed and debited, without permission or authorization, from Client A’s account.
TIGLER used her position with the bank to embezzle approximately $349,556 from Client A’s account by using 100 counter checks to debit funds from Client A’s account. TIGLER used her position with the bank to access personal information from other legitimate banking transactions to create the fraudulent counter checks. TIGLER forged the signatures of Client A and various others on the counter checks in an effort to conceal her embezzlement scheme. TIGLER accessed or utilized legitimate checks drawn on Client A’s account in order to prepare fraudulent counter checks. TIGLER cashed 21 counter checks totaling $73,924 that were supposedly for “roofing,” “market/garden work,” “light fixtures/cleaning,” “extras plumbing,” “misc. work,” “renovations,” and “maintenance.” TIGLER cashed 79 counter checks totaling approximately $275,632 payable to another individual that were supposedly for “house,” “maintenance,” and for “happy birthday.”
TIGLER also lied to the FBI in an effort to conceal her embezzlement of funds from Client A’s account. TIGLER falsely claimed to the FBI to have received verbal approval from Client A to cash the counter checks. In addition, TIGLER failed to report $134,429 on her 2015 tax return and $215,127 on her 2016 return. TIGLER reported W-2 income from the bank of $21,290 for the tax year 2015 and $19,256 for 2016.
TIGLER spread the deposits of cash of embezzled funds into her various accounts. TIGLER also failed to report gambling winnings of $32,180 on her 2015 tax return. When confronted by a relative of Client A, TIGLER falsely implicated another individual in an effort to conceal her embezzlement of funds from Client A’s account.
“Ms. Tigler's alleged abhorrent greed was evident when she purposefully used her employment to embezzle thousands of dollars from an elderly client of the bank. Individuals like Ms. Tigler who allegedly engage in fraudulent schemes will be held accountable,” said Bryan Vorndran, FBI New Orleans Special Agent in Charge. “I would like to thank the efforts put forth by our partners at the Internal Revenue Service, and the Hancock Whitney Bank for helping the FBI disrupt fraud, especially fraud that affects our elderly population.”
“Honest and law-abiding citizens should not be victims of those who use deceit and fraud to line their pockets with other people’s money,” said Special Agent in Charge James E. Dorsey, IRS Criminal Investigation, Atlanta Field Office. “Those individuals who allegedly engage in financial fraud should know they will not go undetected and will be held accountable.” IRS Criminal Investigators will continue to use their financial expertise to identify and trace illicit funds associated with these types of fraud schemes.”
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 U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, the Internal Revenue Service, and the Hancock Whitney Bank 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 Maria Carboni.
New Orleans Man Sentenced for Heroin Conspiracy and Firearm ChargesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on March 18, 2021, JOHN JONES, age 46, of New Orleans, was sentenced by United States District Judge Barry W. Ashe after previously pleading guilty to one count of conspiracy to distribute and to possess with intent to distribute more than one kilogram of heroin and one count of possessing a firearm after a felony conviction.
According to court documents, JONES and others conspired to distribute and to possess with intent to distribute one kilogram or more of heroin between sometime prior to July 19, 2017 and on or about June 29, 2018. Additionally, on or about April 5, 2018, JONES possessed three firearms. JONES was prohibited from possessing firearms because he was convicted in 2002 of conspiracy to possess with the intent to distribute 50 grams or more of cocaine base.
United States District Court Judge Ashe sentenced JONES to 10 years of imprisonment, followed by five years of supervised release. The Court also imposed a $200 mandatory special assessment.
U.S. Attorney Duane A. Evans praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Maria Carboni and Jonathan L. Shih were in charge of the prosecution.
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Harvey Man Pleads Guilty to Clean Water Act Violation from 2016 Oil SpillRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that JAMES TASSIN, age 50, of Harvey, pled guilty on March 18, 2021 to violating the Clean Water Act in connection with an oil spill in 2016.
According to court documents, TASSIN was a marsh buggy operator working on the Chenier Ronquille Barrier Island Restoration Project, which was overseen by contractors working for the National Oceanic and Atmospheric Administration (“NOAA”). The project took place where Louisiana’s coastal wetlands meet the Gulf of Mexico, near several oil and gas pipelines, including Bay Marchand-to-Ostrica-to-Alliance (“BOA”) pipelines, which ran underneath and parallel to the dike on northern side of the island.
Months after the project began, the site manager at the project instructed TASSIN to dig an access channel for crew boats that was different from the access channel in the project plans provided by NOAA. This new access channel ran directly over the BOA pipelines, which were clearly marked at the time. TASSIN worked on that new access channel over multiple days.
On September 5, 2016, TASSIN drove his marsh buggy through the newly deepened access channel and struck one of the BOA pipelines, causing it to leak oil that created a sheen in the surrounding water in Bay Long. When TASSIN reported the spill to his supervisors, the site manager instructed TASSIN to use his marsh buggy to obscure the evidence that he had been deepening the unauthorized access channel, and TASSIN did so.
“The defendant in this case recklessly violated regulations designed to protect the environment and then tried to hide his actions,” said Christopher Brooks, Special Agent in Charge of EPA’s Criminal Enforcement Program in Louisiana. “Today’s guilty plea demonstrates that we will hold violators responsible for breaking our environmental laws.”
“Today’s announcement is a clarion call for stewardship and accountability in the pipeline transportation system,” said Todd Damiani, Special Agent-in-Charge, Southern Region, Department of Transportation Office of Inspector General. “Together with our law enforcement and prosecutorial partners, we will continue our vigorous efforts to pursue those who knowingly disregard laws and regulations intended to protect our Nation’s natural resources.”
“The Department of Commerce OIG is dedicated to working with our partners to curb fraud, waste and abuse, especially when projects receiving NOAA funding result in environmental hazards,” said Duane Townsend, Special Agent in Charge, U.S Department of Commerce, Office of Inspector General.
TASSIN faces up to one year in prison, a fine of up to $100,000, and up to one year of supervised release following any term of imprisonment. Judge Susie Morgan set the sentencing hearing for June 22, 2021.
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, the Department of Transportation’s Office of Inspector General, and the Department of Commerce’s Office of Inspector General. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
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New Orleans Man Admits Possessing Gun in Furtherance of Drug DealingRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that REGINALD JONES, 36, of New Orleans, Louisiana, pleaded guilty on March 17, 2021 to possessing a firearm in furtherance of a drug trafficking crime before United States District Judge Sarah S. Vance.
In November 2019, JONES was indicted along with numerous other defendants for conspiring to distribute heroin, a specific count of possessing heroin with the intent to distribute, and with possessing a firearm in furtherance of drug trafficking.
Court documents show that as part of his plea, JONES admitted that he was intercepted on wiretaps purchasing heroin. JONES also acknowledged an intercepted call in which he was caught discussing going to shoot at unknown individuals who were messing with JONES’S brother. Specifically, on August 16, 2019, JONES was intercepted telling a co-conspirator, “I gotta go take care of something in the east with my little brother… He stay off Bullard ... Ni**a parking stolen cars in front of his store and disrespecting him. . . I’m bout to go take care of that bitch, I got drums in this bitch and everything.”
In response to the call, which was intercepted on federally authorized wiretaps, FBI agents flooded the area around Bullard to prevent a shooting. As they were doing so, another call was intercepted in which JONES ordered heroin from a co-conspirator, which caused agents to relocate to the area where the transactions were normally taking place. Once there, they observed an individual who was driving a vehicle while wearing a rolled up ski mask on his head. This was in August. Agents followed the vehicle and conducted an investigatory stop. JONES was driving and still had the rolled up ski mask on his head. There was a Glock handgun with an extended magazine containing 22 live rounds, including one in the chamber, in the driver’s seat. There were three other men in the car. Agents found two tied red bandanas and another ski mask in the car. They also found a 5.56 caliber pistol with a 45 round magazine, as well as additional ammunition and magazines.
During a subsequent inventory search of JONES’S vehicle, agents found under the back seat a Glock Model 17 Gen 5 handgun, bearing serial number BGTL281, with an extended magazine and 22 live rounds (1 round in the chamber), and approximately 28.5 grams of a tan rock like substance that field tested positive for the presence of heroin. JONES had just bought that heroin before the agents pulled him over.
Sentencing is set for June 23, 2021 before District Judge Vance. JONES faces a sentence of at least 5 years imprisonment up to life, a $250,000 fine, five years supervised release following any term of imprisonment, and a $100 special assessment fee.
U. S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. The case is being prosecuted by Assistant United States Attorney David Haller.
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Slidell Man Charged with Failure to Account for and Pay TaxesRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that SCOTT PELLISSIER (“PELLISSIER”), age 55, of Slidell, Louisiana, was charged on March 12, 2021 with failing to account for and pay federal income taxes and Federal Insurance Contributions Act (“FICA”) taxes, in violation of Title 26, United States Code, Section 7202.
According to the one count bill of information, PELLISSIER conducted a business as a limited liability company under the name Paint and Body Experts of Slidell, Inc. During the third quarter of the year 2016, PELLISSIER collected federal income taxes and FICA taxes in the approximate sum of $43,205.83 from his employees, but did not pay any of that money to the Internal Revenue Service.
If convicted, PELLISSIER faces a maximum sentence of five (5) years. Upon release from prison, PELLISSIER also faces a term of supervised release up to (3) three years, and/or a fine of $10,000 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 371.
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 also like to acknowledge the work of the Internal Revenue Service on this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
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Baton Rouge Resident Sentenced to 87 Months Imprisonment for Conspiring to Distribute Heroin While Incarcerated at the Orleans Parish Justice CenterRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that BRANDON SANDERS, age 30, a resident of Baton Rouge, Louisiana, was sentenced on March 9, 2021 to 87 months in prison, (4) four years of supervised release, and a $100 special assessment by U.S. District Judge Susie Morgan for conspiring to distribute heroin while incarcerated in the Orleans Parish Justice Center in New Orleans for firearm and drug distribution charges.
On December 8, 2020, SANDERS plead guilty to a one count charge of conspiring to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 846. According to court documents, SANDERS, while incarcerated in the Orleans Parish Justice Center on other charges, directed an associate to purchase heroin for resale from Arthur Johnson, aged 42, a resident of New Orleans. SANDERS, Arthur Johnson, and other codefendants were charged in 2018 with conspiring to distribute heroin in the New Orleans and Baton Rouge areas.
U.S. Attorney Evans praised the work of the FBI’s New Orleans Gang Task Force in investigating this matter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
Two Former Louisiana Supervisory Correctional Officers Sentenced for Civil Rights Offense Arising Out of the Death of an InmateRead the Press Release
WASHINGTON – Two Louisiana men, former jail supervisors, were sentenced today to five years in prison and over four years in prison respectively for being deliberately indifferent to an inmate’s serious medical needs.
As a result of this civil rights offense, 19-year-old Nimali Henry died in the custody of the St. Bernard Parish Prison (SBPP) on April 1, 2014. Henry died after she failed to receive medical treatment for her rare blood disorder and other medical conditions during the ten days she was incarcerated.
Former SBPP Captain Andre Dominick, 61, of New Orleans, was sentenced to five years in prison. Dominick previously pleaded guilty to violating Henry’s civil rights under color of law. In pleading guilty, Dominick admitted that he knew that Henry had serious medical needs that required medication. Dominick acknowledged that he had reviewed Henry’s written request for help, in which she wrote that, if she did not continue the medical treatment her doctor had prescribed, there was a 90% chance she would die. Dominick also spoke with Henry about her medical condition; spoke with Henry’s social worker, who confirmed her medical needs; and observed Henry’s deteriorating physical condition while she was in jail. However, despite knowing Henry’s plight, Dominick – who was also acting as the medical officer during Henry’s incarceration – failed to take any reasonable steps to get her the medical attention she needed, as he was required to do under the law.
Former SBPP Corporal Timothy Williams, 41, of New Orleans, was sentenced to 57 months in prison. Williams also previously pleaded guilty to violating Henry’s civil rights under color of law. In his guilty plea, Williams admitted that he knew from his conversations with Henry and her fellow inmates that Henry had serious medical conditions that required medication. Williams also personally observed Henry as she grew sicker throughout her incarceration. However, Williams failed to take any reasonable steps to get Henry necessary medical care for her serious medical needs, as the law required him to do. In his factual basis, Williams further admitted that, rather than obtain medical care for Henry, he placed her in a holding cell, a placement typically reserved for misbehaving inmates, in order to discourage her from making future medical complaints. He also told Henry’s fellow inmates to stop requesting help on Henry’s behalf.
“Nimali Henry’s death was not the result of neglect or a lapse of judgment. Her death was the slow, painful, and completely preventable result of the deliberate choices made by these defendants, each of whom knew that he had the constitutional duty to provide necessary medical care for a young woman who was completely dependent on them for help while she was in their custody,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Justice Department’s Civil Rights Division. “Prosecuting corrections officers who intentionally violate their constitutional responsibilities is a critical part of the Department’s mission.”
“The protection of all of our citizens’ civil rights is an essential part of our Constitution,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Violation of these entitlements, especially in this case by the correctional officers sworn to protect the rights of inmates, erodes public confidence in our correctional system. The public must be able to trust that correctional officers are fulfilling their duties honestly and are truthful during the course of federal investigations or face the consequences of their actions. Our office, along with the Department of Justice, the FBI, state and local law enforcement agencies will continue to investigate and prosecute any violations of our citizens' civil rights.”
“Captain Andre Dominick and Corporal Timothy Williams were responsible for the welfare of inmates at the St. Bernard Parish Prison.” said Special Agent in Charge Bryan A. Vorndran for the FBI New Orleans Field Office. “Correctional officers have a sworn duty to ensure that inmates are protected, rather than abused or neglected. Their actions are a disgrace to all correctional officers who serve ethically and continue to maintain high moral standards throughout our correctional facilities. Because of the choices each defendant made, Nimali Henry failed to get the care and attention that she needed to address her known medical conditions, ultimately resulting in her death. The FBI New Orleans Field Office is appreciative of its partnerships with the Department of Justice’s Civil Rights Division and U.S. Attorney’s Office of the Eastern District of Louisiana and we remain committed to protecting the rights of all Americans, to include those incarcerated.”
On March 10, two former SBBP Deputies, Lisa Vaccarella and Debra Becnel, were sentenced for their roles in covering up the circumstances of Henry’s death.
This case was investigated by the FBI and was prosecuted jointly by Trial Attorney Christine M. Siscaretti of the Civil Rights Division and Assistant U.S. Attorneys Chandra Menon and Tracey N. Knight for the Eastern District of Louisiana.
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Two Former Louisiana Correctional Officers Sentenced for Cover up Following Death of an InmateRead the Press Release
WASHINGTON – Two Louisiana women, former jail deputies, were sentenced today to over a year in prison and six months in prison respectively for their roles in covering up a civil rights violation arising out of an inmate’s death at the St. Bernard Parish Prison (SBPP).
On April 1, 2014, 19-year-old Nimali Henry died in custody after she failed to receive medical treatment for her rare blood disorder and other medical conditions during the ten days she was incarcerated there.
Former SBPP Deputy Lisa Vaccarella of New Orleans was sentenced to 21 months in prison with three years of supervised release for failing to take any affirmative steps to alert federal authorities that she knew that other officers had willfully violated Ms. Henry’s civil rights by depriving her of necessary medical treatment. Vaccarella was also sentenced for lying to FBI agents about her own observations of Ms. Henry. Specifically, Vaccarella admitted that she falsely told FBI agents that she saw Henry get up on her command, stand without help, and walk without any difficulty when, in fact, Vaccarella watched Henry fall to the floor and then, without offering Henry any assistance, closed the cell door, leaving Henry lying on the floor.
Former SBPP Deputy Debra Becnel of New Orleans was sentenced to six months in prison with three months to be served in custody followed by three months of home detention and three years of supervised release for lying to FBI agents during the federal investigation. In pleading guilty, Becnel admitted that she falsely told FBI agents that neither Henry nor the inmates talked to her about Henry’s medical needs, when, in fact, Henry and other inmates had told Becnel and other correctional officers that Henry was ill, needed medical treatment and might die if she did not get her medical treatment.
“When officers obstruct justice and lie during investigations, it threatens our ability to prosecute civil rights cases and erodes the public’s confidence in law enforcement itself," said Pamela S. Karlan, Principal Deputy Assistant Attorney General for the Civil Rights Division. "To ensure that justice prevails, the Department will continue to prosecute officers who lie to investigators and cover up crimes."
“The protection of all of our citizen’s civil rights is an essential part of our Constitution,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Violation of these entitlements, especially in this case by the correctional officers sworn to protect the rights of inmates, erodes public confidence in our correctional system. The public must be able to trust that correctional officers are fulfilling their duties honestly and are truthful during the course of federal investigations or face the consequences of their actions. Our office, along with the Department of Justice, the Federal Bureau of Investigation, state and local law enforcement agencies will continue to investigate and prosecute any violations of our citizen’s civil rights.”
"Along with our partners, the FBI will aggressively investigate allegations wherein correctional officers abuse their position of power and authority over prisoners to deny them their constitutional right to be free from cruel and unusual punishment," said Special Agent in Charge Bryan Vorndran for the FBI New Orleans Field Office. "Nimali Henry suffered incredible unusual punishment at the hands of Deputies Lisa Vaccarella and Debra Becnel. The two deputies willfully deprived Henry of the medical attention she desperately needed and lied to federal authorities to conceal their failure to act in a compassionate and humane manner, let alone honor the oath they swore to uphold. The law suffers the most when those in a position of trust abuse their power. The FBI New Orleans Field Office appreciates its partnerships with the trial attorneys from the Department of Justice’s Civil Rights Division and U.S. Attorney’s Office of the Eastern District of Louisiana.”
Former SBPP Captain Andre Dominick and former SBPP Corporal Timothy Williams are also due to be sentenced today for the role each played in Henry’s death. Dominick and Williams each have pleaded guilty to violating Henry’s civil rights under color of law by being deliberately indifferent to her serious medical needs.
This case was investigated by the FBI and was prosecuted jointly by Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division and Assistant United States Attorneys Chandra Menon and Tracey N. Knight of the U.S. Attorney’s Office for the Eastern District of Louisiana.
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Seafood Company Sentenced for Illegal Sale of OystersRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans, announced that INDIAN RIDGE SEAFOOD COMPANY, LLC, ("INDIAN RIDGE SEAFOOD") a Louisiana Limited Liability Company located in Terrebonne Parish, Louisiana, was sentenced today before U.S. District Court Judge Susie Morgan to a fine of $10,000, and a special assessment of $125 for the illegal sale of oysters in violation of the Lacey Act.
According to court records, from January 1, 2017 through March 19, 2019, INDIAN RIDGE SEAFOOD did knowingly sell and transport oysters in interstate commerce with a market value in excess of $350.00, when, in the exercise of due care, INDIAN RIDGE SEAFOOD should have known that said oysters were acquired and possessed in violation of and in a manner unlawful under the laws of the State of Louisiana, specifically, Louisiana Revised Statutes, R.S. 56:306.4; R.S. 56:306.5; R.S. and 56:306.6. INDIAN RIDGE SEAFOOD failed to report to the Louisiana Department of Wildlife and Fisheries approximately 14,346 sacks of Louisiana oysters, valued at approximately $656,865.
U.S. Attorney Duane A. Evans praised the work of the National Oceanic and Atmospheric Administration Office of Law Enforcement, the Food and Drug Administration Office of Criminal Investigations and the Louisiana Department of Wildlife and Fisheries in investigating this matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
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Two Men Indicted for Violating the Federal Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS, LA – WILLIAM AUTHUR BRYANT, JR., a/k/a “Dudie,” age 27, and TATUM TERRELL DARDAR, age 24, both of Terrebonne Parish, La., were charged March 5, 2021, in an 8-count indictment by a Federal Grand Jury with several narcotics offenses, including conspiring to distribute and possess with intent to distribute 50 grams or more of methamphetamine. BRYANT was also charged with being a felon in possession of a firearm, and possession of a firearm in furtherance of drug trafficking, announced U.S. Attorney Duane A. Evans.
If convicted of the narcotics trafficking charges, BRYANT and DARDAR each face a mandatory minimum term of imprisonment of 5 years and a maximum of 40 years of imprisonment, a fine of up to $5,000,000.00, and at least 4 years of supervised release following any term of imprisonment. BRYANT also faces 10 years of imprisonment if convicted of being a felon in possession of a firearm, in addition to a consecutive 60 month term of imprisonment if convicted of possessing a firearm in furtherance of drug trafficking.
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 Evans reiterated that the 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, Terrebonne Parish Sheriff’s Office, Houma Police Department, St. Charles Parish Sheriff’s Office, Lafourche Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, St. John Parish Sheriff’s Office, and the Louisiana State Police. The prosecution is being handled by Assistant United States Attorneys Melissa Bücher and Nolan D. Paige.
Tickfaw Tax Preparer Charged with Filing False IRS ReturnsRead the Press Release
NEW ORLEANS, LA – CHERYL L. KINCHEN, age 38, and a resident of Tickfaw, Louisiana, was indicted on March 5, 2021, by a federal grand jury for filing false tax returns, announced U.S. Attorney Duane A. Evans of the Eastern District of Louisiana.
As charged in the indictment, KINCHEN prepared false tax returns in 2015 and 2017 for her own personal taxes, wherein she significantly underreported her gross income for the alleged time periods.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, KINCHEN faces a maximum sentence of three years, one year of supervised release, and a $100,000 fine for aiding and assisting in the preparation of a fraudulent tax return.
U.S. Attorney Evans commended the special agents of IRS-Criminal Investigation for their handling of the matter. The case is being prosecuted by Assistant United States Attorney Edward J. Rivera.
Former Mariner Admits to Facilitating Bribes, Two Others Plead Guilty, in Coast Guard Test-Fixing SchemeRead the Press Release
NEW ORLEANS, LA –U.S Attorney Duane A. Evans announced that on March 5, 2021 three pleaded guilty related to a test score-fixing scheme at a United States Coast Guard exam center, bringing the total number of defendants convicted in this matter to 19.
SHARRON ROBINSON, a former maritime industry worker, pleaded guilty to conspiracy to defraud the United States. In a factual basis filed into the record, ROBINSON admitted that she acted as an intermediary between Coast Guard exam center employee Beverly McCrary and merchant mariners who were willing to pay for false passing exam scores. The exams tested mariners’ knowledge and training to safely operate under the authority of licenses, which were legally required to work various positions on vessels.
ROBINSON acknowledged that she would take money from mariners and then pay McCrary for the false scores. ROBINSON understood that McCrary would keep a portion of that money and use the rest to bribe another exam center employee to enter the scores. Sometimes ROBINSON put mariners directly in touch with McCrary to arrange their payments. ROBINSON admitted that, in addition to assisting nine other mariners in obtaining false scores, she also had her own scores fixed. All of these false scores resulted in the Coast Guard issuing unearned licenses.
On November 20, 2020, as alleged in the indictment, Coast Guard credentialing specialist Dorothy Smith entered the false scores in this scheme. The indictment further alleged that Smith accepted bribes and used a network of intermediaries. Smith and McCrary are scheduled to stand trial on June 28, 2021.
Previously, the U.S. Attorney’s Office announced the guilty pleas of 16 defendants which occurred on January 20, 27 and 28, 2021 for unlawfully receiving and possessing endorsements as part of the scheme. Since that announcement, on February 4, 2021 and March 4, 2021, respectively, two more defendants, ANTHONY GARCES and QUANG TRAN, have also plead guilty to that charge.
U.S. Attorney Evans reiterated that the indictment’s allegations against Smith and McCrary are merely charges and their guilt must be proven beyond a reasonable doubt.
The Honorable Barry W. Ashe presided over the guilty pleas and set sentencing dates of May 27, 2021 for GARCES and June 10, 2021 for ROBINSON and TRAN. The maximum penalty for each defendant is five years’ imprisonment, a $250,000 fine, three years of supervised release, and a $100 special assessment.
This case is being investigated by the Coast Guard Investigative Service. Assistant U.S. Attorney Chandra Menon is in charge of the prosecution.
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Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MAURICIO SANTOS-RIVERA, age 34, a citizen of Honduras, was sentenced on March 4, 2021 after pleading guilty to illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326.
According to the bill of information, MAURICIO SANTOS-RIVERA was encountered in the United States on or about January 5, 2021, after having been previously removed therefrom on or about November 21, 2005.
Judge Ivan L.R. Lemelle sentenced MAURICIO SANTOS-RIVERA to time served and one year of supervised release after imprisonment.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Three Plead Guilty to Conspiracy to Commit Health Care FraudRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced that CHRISTOPHER BLACKSTONE (“BLACKSTONE”), JOSEPH CAMPO (“CAMPO”), and MARIO DELUCA (“DELUCA”) have each pled guilty in federal court relating to their roles in a health care fraud conspiracy.
BLACKSTONE, age 43, a resident of Baton Rouge, Louisiana, pled guilty on February 24, 2021 before U.S. District Judge Lance M. Africk to Count One of a Bill of Information charging him with conspiracy to commit health care fraud, in violation of Title 18, United States Code, Sections 1347 and 1349.
CAMPO, age 78, a resident of New Orleans, Louisiana, pled guilty on February 25, 2021 before U.S. District Judge Susie Morgan to Count One of a Bill of Information charging him with conspiracy to commit health care fraud and money laundering, in violation of Title 18, United States Code, Section 371.
DELUCA, age 37, a resident of Metairie, Louisiana, pled guilty on February 24, 2021 before U.S. District Judge Jane Triche Milazzo to Count One of a Bill of Information charging him with conspiracy to commit health care fraud, in violation of Title 18, United States Code, Sections 1347 and 1349.
According to the charging documents, CAMPO was a licensed pharmacist in the State of Louisiana and worked as the Pharmacist-in-Charge (“PIC”) at Prime Pharmacy Solutions (“Prime”), which was located in Slidell, Louisiana. BLACKSTONE served as the owner of Prime and DELUCA served as the Information Technology (“IT”) Director.
Between 2014 and 2016, Prime operated as a primarily closed-door pharmacy that was in the business of mixing and filling prescriptions for compounded medications that were reimbursed by health care benefit programs, including TRICARE, a health care benefit program for United States military personnel and their families.
BLACKSTONE, CAMPO, DELUCA, and other co-conspirators, acting on behalf of Prime, selected formulas for compounded medications, not based on scientific evaluations of effectiveness or individualized patient need, but rather, to maximize reimbursement from TRICARE and other health care benefit programs. Prime then mass produced these High-Yield Compounded Medications and created a series of preprinted prescription forms encouraging and directing prescribers/doctors to prescribe these High-Yield Compounded Medications.
“Individuals involved in this scheme illegally bilked 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 BLACKSTONE and DELUCA for August 11, 2021 and CAMPO for August 19, 2021. CAMPO faces a maximum term of imprisonment of five (5) years, a maximum $250,000 fine, three (3) years supervised release following any term of imprisonment, a $100 special assessment fee and restitution in the amount of $3,015,579.17 to be paid to TRICARE. BLACKSTONE and DELUCA face a maximum term of imprisonment of ten (10) years, a maximum $250,000 fine, three (3) years supervised release following any term of imprisonment, and a $100 special assessment fee. BLACKSTONE has agreed to pay restitution in the amount of $10,689,005 to TRICARE, and DELUCA has agreed to pay restitution in the amount of $777,749.20 to TRICARE.
U.S. Attorney Evans 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 U.S. Attorney Kathryn McHugh.
Federal Grand Jury Indicts Man for Drug and Weapons ViolationsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that on Thursday, February 25, 2021, DERRICK ESTES, age 41, resident of Orleans Parish, was charged in a four-count indictment for alleged drug and gun violations. These violations occurred on January 17, 2021 and February 1, 2021. In Count 1 of the indictment, ESTES is charged with possession with intent to distribute fentanyl and over 28 grams of crack-cocaine. Count 2 charges ESTES with possessing a firearm in furtherance of a drug trafficking offense and in Count 3 with being a felon in possession of a firearm. Finally, ESTES is charged in Count 4 with possession with the intent to distribute crack-cocaine and over 40 grams of fentanyl.
In Count 1 and 4 of the indictment, ESTES is charged with possession with the intent to distribute a certain quantity of crack-cocaine and fentanyl, in violation of in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C). If convicted, ESTES faces a maximum sentence of 20 years, a fine up to $1,000,000.00, a period of at least 3 years supervised release, and a mandatory special assessment of $100.00 for each count. ESTES is also charged in Count 1 with possession with the intent to distribute 28 or more grams of crack-cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B)(iii) and in Count 4 with possession with the intent to distribute 40 or more grams of fentanyl in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B)(vi). If convicted, ESTES faces a minimum sentence of 5 years up to a maximum of 40 years imprisonment, a fine up to $5,000,000.00, a period of at least 4 years supervised release, and a mandatory special assessment of $100.00 for each charge. In Count 2, ESTES is charged with possessing a firearm in furtherance of a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1). If convicted, ESTES faces a mandatory minimum sentence of 5 years up to a maximum of life imprisonment, to be run consecutive to any other sentence imposed, a fine up to $250,000.00, a period of 5 years supervised release, and a mandatory special assessment of $100.00. Finally, in Count 3, ESTES is charged with being a felon in possession of a firearm in violation of Title 18, United States Code, Section 922(g)(1). If convicted, ESTES faces a maximum sentence of 10 years of imprisonment, a fine up to $250,000, a period of 3 years supervised release, and a mandatory special assessment of $100.00.
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 and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
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Assistant U.S. Attorney Duane A. Evans Appointed as Interim United States AttorneyRead the Press Release
NEW ORLEANS –Assistant U.S (AUSA). Attorney Duane A. Evans will serve as Interim United States Attorney pursuant to 28 U.S.C. § 546, which provides that “the Attorney General may appoint a United States Attorney for the district in which the office of United States Attorney is vacant.” This appointment will take effect on March 1, 2021.
“I am grateful to the Department of Justice for the opportunity to once again serve the citizens of the Eastern District of Louisiana,” stated Assistant U.S. Attorney Evans. “I am looking forward to once again working closely with the wonderful and dedicated people of our office and together, we will tackle any challenges that lie ahead.” “I also would like to assure our federal, state, and local law enforcement partners that our working relationships and communication bonds will remain strong.”
Duane A. Evans’ first tenure as Acting/Interim United States Attorney for the Eastern District of Louisiana began on March 11, 2017. Since September 2018, AUSA Evans was assigned to the Executive Unit. The Executive Unit is comprised of senior attorneys who investigate and prosecute a wide variety of offenses. Prosecutors assigned to the Unit prosecute violent crime and drug trafficking offenses, white-collar financial crimes, public corruption cases, complex health-care fraud schemes, and capital crimes. Executive Unit attorneys also participate as mentors in criminal investigations and trials conducted by more junior attorneys. Previously, AUSA Evans served as the First Assistant United States Attorney and assisted with management of the daily operations of the office. Prior to becoming First Assistant, Mr. Evans served as a Senior Litigation Counsel and later, Chief of the Criminal Division. Mr. Evans first joined the United States Attorney’s Office in August 2000. His first assignment was to the Violent Crimes Unit where he later became the Unit’s Chief. In 2010, he became Chief of the Strike Force and Anti-Gang Unit. During his time at the U.S. Attorney’s Office, Mr. Evans successfully prosecuted matters related to firearms, public corruption, violent crime, illegal narcotics trafficking, access device fraud, government theft, and the Racketeer Influenced and Corruption Organization Act (RICO).
Mr. Evans is a 2006 recipient of the Executive Office of U.S. Attorneys Director’s Award for Superior Performance by a Litigative Team.
Mr. Evans received his juris doctorate degree from Loyola University New Orleans College of Law in 1995 and received a B.S.E.E. from Tulane University School of Engineering in 1990. Mr. Evans clerked for Virgin Islands Superior Court Judge Ishmael A. Meyers (deceased). He later served as an Assistant District Attorney for the Orleans Parish District Attorney’s Office from 1998 to 2000. He is a native of St. Thomas, United States Virgin Islands.
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Louisiana Man Charged with Conspiracy to Defraud the Government and Violate the Procurement Integrity Act and Lying to Federal AgentsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Peter G. Strasser and Acting Assistant Attorney General Richard A. Powers, for the Antitrust Division of the Department of Justice, announced that Johnny Guillory, Sr., 72, of Opelousas, Louisiana, was charged in a two-count indictment by a federal Grand Jury with conspiracy to defraud the United States and to violate the Procurement Integrity Act and making false statements to federal agents.
According to the indictment, Guillory conspired with Cajan Welding & Rentals, Ltd., and other unnamed co-conspirators to defraud the United States by corrupting and impairing the government procurement process, and by obtaining non-public pricing and cost information in order to obtain subcontract awards and payments from the U.S. Department of Energy in connection with its operation of the nation’s Strategic Petroleum Reserve. From 2002 until 2016, Cajan was awarded over 50 subcontracts and received payments in excess of $15,000,000 from the U.S. Department of Energy, during which time Guillory received financial benefits from Cajan.
If convicted, Guillory faces a maximum term of five years imprisonment, fine of $250,000, a three year term of supervised release, and a special assessment of $200.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the U.S. Attorney’s Office in the Eastern District of Louisiana, Department of Justice Antitrust Division, and Department of Energy-Office of the Inspector General.
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New Orleans Woman Pleads Guilty to Theft of More Than $280,000 in Federal Student AidRead the Press Release
NEW ORLEANS - The U.S. Attorney’s Office for the Eastern District of Louisiana, announced that ASHLY HOWARD (“HOWARD”), age 33, of New Orleans, Louisiana, pled guilty on February 18, 2021 in federal court before U.S. District Judge Eldon E. Fallon to Theft of Government Funds, in violation of Title 18, United States Code, Section 641 and Identity Theft, in violation of Title 18, United States Code, Section 1028(a)(7).
According to court documents, beginning in 2018 and through 2019, HOWARD fraudulently submitted Free Applications for Federal Student Aid (FAFSA) and/or Master Promissory Notes (MPN) in individuals’ names in an effort to obtain federal financial aid. HOWARD facilitated the submission of thirty (30) applications for admission to Nunez Community College in Chalmette, Louisiana in these individuals’ names. HOWARD facilitated the creation of debit cards in these individuals’ names so that the student loan proceeds could be disbursed. HOWARD accepted the grants and student loans and used the federal financial aid funds under the names of these individuals; some with, and some without, their knowledge or consent. Accordingly, HOWARD fraudulently received approximately $280,000 in Department of Education funds she was not entitled to receive.
The Court set sentencing in this matter for May 27, 2021. HOWARD faces a maximum penalty of fifteen (15) 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 per count.
U.S. Attorney Strasser praised the work of the U.S. Department of Education, Office of Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Kathryn McHugh.
New Orleans Man Sentenced to Six Years in Prison for Charges Related to Credit Card Fraud ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JEFFERY JOSEPH, age 26, a resident of New Orleans, was sentenced on February 18, 2021 to 74 months in prison by U.S. District Judge Barry W. Ashe. He was the fourth defendant to be sentenced in this seven-defendant conspiracy case.
According to court documents, an investigation by the U.S. Secret Service revealed that JOSEPH and the other six defendants engaged in a scheme to obtain merchandise and cash from stores through fraud. The defendants obtained stolen credit and debit card information, encoded it onto cards, and then used that information to purchase items at stores. The defendants would then return the items at a different store of the same chain, but they would deceive store workers in order to have the chargeback credited to their own bank accounts. Court documents also detail how JOSEPH took flights with several other co-conspirators to perform fraudulent credit card transactions in various cities in the United States, including St. Louis, Missouri; Richmond, Virginia; Nashville, Tennessee; Portland, Oregon; Milwaukee, Wisconsin; and Cincinnati, Ohio. JOSEPH was also arrested in Minnetonka, Minnesota, and Franklin, Tennessee, while committing credit card fraud.
Federal agents located social media posts by JOSEPH that further established the fraud. For example, a July 2018 Instagram post showed JOSEPH sitting on the hood of a Mercedes with the caption, “I’m living proof that crime do pay.” Another post by JOSEPH in September 2018 showed him in Atlanta with the caption “only ducking indictments,” just six days after two of JOSEPH’S co-conspirators had been arrested. In his plea documents, JOSEPH admitted that he caused between $250,000.00 and $550,000.00 in losses through his own conduct and that of his co-conspirators.
Judge Ashe sentenced JOSEPH pursuant to JOSEPH’S prior guilty plea to three counts of the Third Superseding Indictment in this case. As to conspiracy to commit access device fraud, JOSEPH was sentenced to 50 months in prison and 3 years of supervised release. As to possession of device making equipment, JOSEPH was sentenced to 50 months in prison and 3 years of supervised release. These prison terms were ordered to run concurrently. As to the count of aggravated identity theft, Judge Ashe sentenced JOSEPH to a mandatory consecutive term of two years in prison along with a concurrent term of 1 year of supervised release.
“Today’s sentencing sends a clear message that individuals like Mr. Joseph who engage in fraudulent schemes of theft and deception that impact innocent victims and businesses within our community will be held accountable,” said Leslie Pichon, U.S. Secret Service New Orleans Special Agent in Charge.
U.S. Attorney Strasser praised the agencies that contributed to this conviction, which represents a coordinated effort of federal and state law enforcement authorities within the U.S. Secret Service’s Louisiana Cyber Fraud Task Force. U.S. Attorney Strasser also thanked the Franklin (TN) Police Department, the Mobile Police Department, the Gulfport Police Department, the Minnetonka (MN) Police Department, the Jefferson Parish District Attorney’s Office, and the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorneys Matthew R. Payne and K. Paige O’Hale are in charge of the prosecution.
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Two Louisiana Return Preparers Plead Guilty to Tax Fraud ConspiracyRead the Press Release
WASHINGTON – Two Louisiana tax preparers pleaded guilty on February 10, 2021 to conspiracy to defraud the United States, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana.
According to court documents and statements made in court, from January through April 2015, Morgan Antoine and Jennifer Austin conspired to file false tax returns for clients of Pelicans Income Tax and Payroll Service, a tax preparation business located in Kenner and Westwego, Louisiana. Antoine and Austin prepared client returns reporting false income and withholdings in order to generate larger tax refunds. In addition to preparing false returns for her clients, Antoine also filed a fraudulent personal return that claimed a false dependent. In total, Antoine and Austin caused a tax loss of more than $550,000.
U.S. District Judge Sarah S. Vance scheduled sentencing for May 26, 2021. At sentencing, Antoine and Austin each face a maximum sentence of five years in prison. Antoine and Austin also face a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Strasser commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Jessica Kraft and William Montague of the Tax Division and Assistant U.S. Attorney Carter Guice, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
New Orleans Felon Indicted on Numerous Gun and Drug Distribution ChargesRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that CHRISTOPHER MAY, age 28 of New Orleans, Louisiana, was charged in a six count indictment by a Federal Grand Jury for violating the Federal Gun Control Act, Title 18 United States Code, Sections 922 and 924 and the Federal Drug Control Act, Title 21 United States Code, Section 841.
According to court documents, MAY was previously convicted of a drug offense in Orleans Parish. This present charge alleges he was in possession of a DRACO AK-47 pistol in December of 2020. Later, he is accused of possessing with the intent to distribute cocaine and a heroin mixture containing fentanyl. During the drug trafficking crime, he is charged with possessing a Glock 23 handgun. In addition to the Glock 23, he is accused of having a stockpile of ammunition. MAY is prohibited from possessing firearms due to his criminal history. If convicted on all counts, MAY faces a maximum term of life imprisonment, a fine of $1,000,000.00, five (5) years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee for each count.
U.S. Attorney Strasser 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 and is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.
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Metairie Man Sentenced for Embezzling over $7 Million and for Filing False Tax ReturnsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DEEPAK “JACK” JAGTIANI, age 61, a resident of Metairie, was sentenced today by U.S. District Judge Jay C. Zainey to 63 months in prison for embezzling over $7 million from his employer and for defrauding the government of over $1 million in income taxes. JAGTIANI previously pleaded guilty to both counts of the indictment, which charged him with wire fraud and making false statements on a federal income tax return.
According to the court documents, from 2007 to 2019, JAGTIANI served as the comptroller of Dan-Gulf Shipping, Inc., a Metairie-based freight forwarding company. In that capacity, JAGTIANI had the authority to manage the payroll and other accounts for Dan-Gulf. JAGTIANI admitted that he used his authority to pay himself excessive salaries and benefits from 2009 through early 2019. In total, JAGTIANI defrauded Dan-Gulf and its business partner of over $7,000,000.00.
JAGTIANI also admitted to filing false personal tax returns. According to court documents, for tax years 2014 to 2017, JAGTIANI claimed business losses through a fake catering business. In total, he claimed enough business losses to offset most of his income for which he would be required to pay federal income tax. In truth and in fact, neither JAGTIANI nor his spouse operated any catering business. In total, JAGTIANI avoided paying $1,232,267.00 in federal income taxes.
As to Count 1, wire fraud, Judge Zainey sentenced JAGTIANI to 63 months in prison and three years of supervised release. As to Count 2, filing false tax returns, Judge Zainey sentenced JAGTIANI to 36 months in prison and one year of supervised release. These sentences were ordered to run concurrently. JAGTIANI was also ordered to pay a $100 mandatory special assessment as to each count.
Judge Zainey further ordered JAGTIANI to pay $7,077,137.36 in restitution to Dan-Gulf and Caytrans BBC, LLC, a partner of Dan-Gulf. JAGTIANI must also pay $1,232,267.00 in restitution to the IRS for unpaid income taxes.
U.S. Attorney Strasser praised the agencies that contributed to this indictment, including the U.S. Secret Service, the Internal Revenue Service – Criminal Investigations, and the Jefferson Parish Sheriff’s Office. U.S. Attorney Strasser also extended his thanks to the Jefferson Parish District Attorney’s Office for their assistance in this matter. This case is an example of the coordinated effort of the federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force, which includes representatives from the U.S. Secret Service, the Internal Revenue Service, the Louisiana Attorney General’s Office, Louisiana State Police, Jefferson Parish Sheriff’s Office, New Orleans Police Department, Covington Police Department, Hammond Police Department, Kenner Police Department, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John the Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, St. Tammany Parish District Attorney’s Office, Homeland Security Investigations, U.S. State Department, U.S. Postal Inspection Service, Social Security Administration-Office of Inspector General, and the Defense Criminal Investigative Service. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
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Former Phone Company Employee Charged for Role in Sim Swap Scam That Targeted at Least 19 Customers, Including New Orleans ResidentRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that STEPHEN DANIEL DEFIORE age 36, a resident of Brandon, Florida, was charged today in a one-count Bill of Information with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 371 and 1343, for his role in a SIM Swap scam that targeted at least nineteen people, including a New Orleans-area physician. DEFIORE is the second member of the conspiracy to be charged.
According to the Bill of Information, 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.
From August 2017 until November 2018, DEFIORE worked as a sales representative for Phone Company A. In that capacity, DEFIORE had access to the accounts of Phone Company A’s customers, including the ability to switch the subscriber identification module (SIM) card linked to a customer’s phone number to a different phone number. Between October 20, 2018, and November 9, 2018, DEFIORE accepted multiple bribes, typically in the amount of approximately $500 per day, to perform SIM swaps of Phone Company A customers identified by a co-conspirator. For each SIM swap, a co-conspirator sent DEFIORE a customer’s phone number, a four-digit PIN, and a SIM card number to which the phone number was to be swapped. In total, DEFIORE received approximately $2,325 in a series of twelve payments. Among the individuals whose accounts DEFIORE accessed was Victim A, a New Orleans resident, who phone number was swapped on November 10, 2018, to a SIM card contained in an Apple iPhone 8 that was in the possession of Richard Li. Li was charged with his role in the offense in June 2020.
If convicted, DEFIORE faces a maximum term of five (5) years in prison, 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 Strasser reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Jordan Ginsberg, supervisor of the Public Corruption Unit, is in charge of the prosecution.
Mexican National Pleads Guilty to Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that GUADALUPE HERRERA-PEREZ, age 41, a citizen of Mexico, pled on February 3, 2021 today to a one-count Bill of Information for illegal reentry of a removed alien after deportation, in violation of 8 U.S.C. '' 1326(a) and (b)(2).
According to the Bill of Information, GUADALUPE HERRERA-PEREZ reentered the United States on or about November 26, 2017, after having been previously removed therefrom on or about January 28, 1998.
GUADALUPE HERRERA-PEREZ faces a maximum term of imprisonment of twenty years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentencing for May 12, 2021. 2018.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
New Orleans Man Sentenced for Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that GERARD LAWLESS, age 41, of New Orleans, was sentenced on February 3, 2021 by United States District Judge Lance M. Africk after previously pleading guilty to being a felon in possession of a firearm, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(2).
According to court documents, on August 4, 2018, LAWLESS possessed a Ruger .38 caliber firearm in New Orleans. LAWLESS had previously been convicted of a felony offense punishable by more than 1 year of imprisonment in the Orleans Parish Criminal District Court.
Judge Africk sentenced LAWLESS to 81 months of imprisonment, 3 years of supervised release, and a $100 special assessment.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation, Drug Enforcement Administration, and New Orleans Police Department in investigating this case. Assistant United States Attorneys Elizabeth Privitera and Jonathan L. Shih are in charge of the prosecution.
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.
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Louisiana Tax Preparer Sentenced to Prison for Filing Fraudulent ReturnsRead the Press Release
Washington – A Louisiana return preparer was sentenced to 24 months in prison today for conspiring to defraud the United States, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and the U.S. Attorney’s Office for the Eastern District of Louisiana.
According to court documents, Michegel Butler of St. John the Baptist Parish, Louisiana, owned Crown Tax Service LLC, a tax preparation business located in Kenner, Louisiana. From approximately January 2013 through April 2013, Butler and others conspired to defraud the United States by preparing returns that fraudulently inflated clients’ tax refunds. Some of the returns included false Schedule C business income and expenses, dependents, and dependent care expenses. To substantiate the false income and expenses, Butler and others directed clients to create bogus receipts. In total, Butler caused over $100,000 in tax losses.
In addition to the term of imprisonment, U.S. District Judge Carl J. Barbier ordered Butler to serve three years of supervised release and to pay approximately $90,856 in restitution to the United States.
Deputy Assistant Attorney General Goldberg and the U.S. Attorney’s Office for the Eastern District of Louisiana commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Jessica Kraft of the Tax Division and Assistant U.S. Attorney Dall Kammer, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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16 Plead Guilty in Coast Guard Test Score-Fixing SchemeRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced the guilty pleas of 16 defendants related to a test score-fixing scheme at a United States Coast Guard exam center.
The Honorable Barry W. Ashe accepted the pleas on January 20, 27, and 28, 2021, with each of the following defendants pleading guilty to unlawfully receiving an officer-level mariner license: JONATHAN ABBEY, RAFAEL ATKINS, ANTHONY BROWN, CHARLES FRANKS, JERRY FUDGE, DAVID GALVAN, JUSTIN GANDY, CARDELL HUGHES, EDWARD JONES, BRANDON MACK, HUGO MARQUEZ, MILES MARTS, DEVERICK MORROW, OCTAVIAN RICHARDS, ANTWAINE TRAVIS, and ROBERT WINTERS.
As admitted during their guilty pleas, these defendants obtained licenses by paying for false Coast Guard exam scores. The exams were designed to test their knowledge and training to safely operate under the authority of the licenses.
According to court filings, the fraudulently obtained licenses included, among others, those authorizing mariners to serve as the master of vessels of any tonnage in any waters, to serve as the chief mate of vessels of any tonnage in any waters, and to serve as the first assistant engineer of vessels of any horsepower in any waters. The master, also known as the captain, is the officer having command of a vessel and is ultimately held responsible for the safety of the crew, vessel, cargo and all aspects of the vessel’s operation. The chief mate of a vessel is the officer in charge of the deck department and is typically is responsible for navigation, keeping watch of the bridge, cargo, stability calculations, being the medical person in charge, and assuming command of the vessel if the master is unable to fulfill his duties. The first assistant engineer of a vessel is typically responsible for the upkeep of machinery, the manning and supervision of the engine room, and keeping watch of the engine room.
As alleged in the indictment, these defendants’ false scores were entered by Coast Guard credentialing specialist DOROTHY SMITH. The indictment alleges that SMITH accepted bribes in exchange for entering passing test scores and used a network of intermediaries to connect her to license applicants. The United States Attorney’s Office reiterated that the indictment’s allegation against SMITH is merely a charge and her guilt must be proven beyond a reasonable doubt.
Judge Ashe set sentencing dates for April and May, 2021. The maximum penalty for each conviction is five years’ imprisonment, a $250,000 fine, three years of supervised release, and a $100 special assessment.
This case is being investigated by the Coast Guard Investigative Service. Assistant U.S. Attorney Chandra Menon is in charge of the prosecution.
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NOPD Detective and NOPD Police Officer Among Seven Indicted for Stealing More Than $100,000 from the United States Army by Claiming Reimbursement for Military Funeral Honors Ceremonies That Never OccurredRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced on Friday a seven-count indictment charging New Orleans Police Detective CHANTELLE DAVIS, New Orleans Police Officer LYNEA SANDERS, and five other former United States Army reservists with stealing more than $100,000 from the United States Department of the Army by claiming reimbursement for the performance of military funeral honors ceremonies that never happened.
The National Defense Authorization Act of 2000 authorizes military funeral honors for active duty soldiers, retirees, and veterans. At a family’s request, eligible persons can receive military funeral honors, including the folding and presenting of the United States flag and the playing of “Taps.”
According to today’s indictment, CHRISTOPHER O’CONNOR, a former Army pay technician, submitted fraudulent reimbursement requests for military funeral honors that O’CONNOR, CHANTELLE DAVIS, LYNEA SANDERS, LEROY DANIELS, Jr., DERRICK BRANCH, CODY FRANCIS, and TERRANCE HOWARD allegedly performed but had not.
According to the indictment, O’CONNOR, age 40, stole approximately $18,825.83 in Department of the Army funds, BRANCH, age 36, stole approximately $15,469.30, DANIELS, age 45, stole approximately $11,693.87, DAVIS, age 35, stole approximately $8,399.65, FRANCIS, age 31, stole approximately $11,378.27, HOWARD, age 54, stole approximately $13,585.92, and SANDERS, age 41, stole approximately $22,505.35. All the defendants are former Army reservists in the 377th Theater Sustainment Command, New Orleans. Each is a resident of New Orleans other than DANIELS who lives in Westwego, LA.
If convicted of conspiring to commit theft of government funds, in violation of Title 18, United States Code, Section 371, and theft of government funds, in violation of Title 18, United States Code, Section 641, each defendant 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. The United States is seeking full restitution of all the stolen money, approximately $101,858.19.
U. S. Attorney Strasser reiterated that an Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Army Criminal Investigation Command, including Special Agents John Hiniker, Jeffrey Riedeman, and Denny Richter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
Justice Department Seeks to Shut Down Louisiana Tax Return PreparersRead the Press Release
The United States has filed a complaint seeking to bar Louisiana tax return preparers from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced today.
The civil complaint against Leroi Gorman Jackson and Mario Alexander, both individually and doing business as The Taxman Financial Services LLC, was filed in the U.S. District Court for the Eastern District of Louisiana. The complaint alleges that Jackson formed The Taxman Financial Services in 2013 and manages its six offices across Louisiana and Texas, and that Alexander started working there as a tax preparer in 2016. According to the complaint, in October 2019, the Civil District Court for the Parish of Orleans permanently enjoined Jackson from working as a Louisiana tax preparer.
The complaint alleges that Jackson and Alexander prepared tax returns claiming fabricated business expenses, as well as claiming various false tax deductions and credits, including charitable contributions and education credits. It also alleges that defendants fabricated business income and/or expenses in order to increase claims for earned income tax credits (because of the way the EITC is calculated, reporting more income can, up to a point, result in a larger refundable credit; similarly, claiming losses to offset higher income, thereby decreasing total reported income, can also generate a larger refundable credit). According to the complaint, Jackson and Alexander significantly underreported their customers’ tax liabilities, obtained fraudulent tax refunds, and charged exorbitant fees for their services, often without their customers’ knowledge.
The government further alleges in the complaint that defendants have filed over 12,400 tax returns since the 2017 filing season, and that they have filed tax returns using other tax preparers’ personal identifying information. The complaint alleges that Alexander, at least, has done so in order to avoid an IRS investigation as to whether he has complied with due diligence requirements that obligate a tax return preparer to make reasonable inquiries to ensure that a customer is legitimately entitled to various tax credits, including the earned income tax credit. According to the complaint, Alexander is subject to and has not paid penalties incurred for past violations of these due diligence requirements.
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 and has launched a free directory of federal tax preparers. In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Department of Justice’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on 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.
Grand Jury Returns Superseding Indictment Charging First NBC Bank Executives and A Borrower with Bank Fraud and False StatementsRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that a grand jury returned a superseding indictment against ASHTON J. RYAN, age 73, of Kenner; WILLIAM BURNELL, age 71, of Kenner; ROBERT BRAD CALLOWAY, age 60, of Metairie; FRANK J. ADOLPH, age 61, of Kenner; and FRED V. BEEBE, age 62, of Donaldsonville, for defrauding First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to the 49-count Superseding Indictment, from 2006 through April 2017, RYAN, BURNELL, CALLOWAY, BEEBE, and ADOLPH conspired to defraud First NBC Bank (the “Bank”) through a variety of schemes. RYAN was the President and CEO of the Bank for most of its existence. BURNELL was the Chief Credit Officer. CALLOWAY was an Executive Vice President. BEEBE was a Senior Vice President. ADOLPH was a borrower at the Bank who was charged with conspiring with the four Bank executives to obtain loans based on false statements and forged documents.
The Superseding Indictment alleges that RYAN, BURNELL, CALLOWAY, BEEBE, ADOLPH, and others conspired to defraud First NBC Bank by disguising the true financial status of certain borrowers and their troubled loans, concealing the true financial condition of the Bank from the Board, auditors, and examiners. The borrowers included real estate developer Gary Gibbs, real estate developer Kenneth Charity, Bank general counsel Gregory St. Angelo, factoring business owner FRANK ADOLPH, hotel owner Arvind “Mike” Vira, contractor Warren Treme, and contractor Jeffrey Dunlap. CALLOWAY was Gibbs’s loan officer while BEEBE worked as Treme’s loan officer. RYAN served as the loan officer or oversaw the loan officers for all of those borrowers. BURNELL approved the risk rating for all of these borrowers’ loans and was the gatekeeper tasked with protecting the safety and soundness of the Bank’s loan portfolio. Dunlap, Charity, St. Angelo, Vira, Gibbs, and Treme have all previously been charged in individual Bills of Information with conspiring to defraud First NBC Bank. All six of these borrowers are listed in the Superseding Indictment as members of the bank fraud conspiracy with RYAN, BURNELL, CALLOWAY, BEEBE, and ADOLPH.
During the course of the conspiracy, RYAN, BURNELL, CALLOWAY, and BEEBE repeatedly extended loans to borrowers who were unable to pay their loans without relying on loan payments to keep them current. To hide this practice, RYAN, BURNELL, CALLOWAY, and BEEBE made false statements in loan documents and elsewhere about the purposes of loans, the borrowers’ abilities to repay those loans, and the sources of funds used to pay those loans. When the borrowers were unable to pay those loans, RYAN, BURNELL, CALLOWAY, and BEEBE made new loans to these same borrowers and then used the proceeds from those new loans to pay the existing loans. This created the false impression that the borrowers were able to pay their loans, when in fact they would not have been able to pay their loans without going further into debt through new borrowing from the Bank. The new loans prevented these borrowers from appearing on lists that RYAN and BURNELL gave the Bank’s Board each month, which would have highlighted that the borrowers were unable to make loan payments or had cash flow problems. RYAN, BURNELL, CALLOWAY, and BEEBE also made false statements about the purpose of those loans, misrepresenting in Bank documents that the borrowers were able to pay loans with cash generated from the borrowers’ businesses, when in fact the borrowers were only able to pay those loans with proceeds from new Bank loans. The borrowers often spent the proceeds of these business loans on unrelated personal expenses, including by overdrawing their checking accounts at the Bank, and RYAN, BURNELL, CALLOWAY, and BEEBE paid these overdrafts by issuing new loans to the borrowers. This practice kept the borrowers off of month-end overdraft reports to the Board and hid the borrowers’ inability to pay their own expenses without new loan proceeds.
For certain loans, RYAN, BURNELL, CALLOWAY, and BEEBE included borrower documents in loan files despite knowing that the documents were false. For example, even after RYAN and BURNELL learned that ADOLPH was submitting falsified documents to the Bank to inflate his collateral, RYAN and BURNELL continued to submit loans for ADOLPH that included the false documents. Even though RYAN, BURNELL, and CALLOWAY knew that Gibbs could not pay his loans with cash generated from his businesses, they continued to submit loan documents that included false documents showing that Gibbs’s business earned enough cash to pay his loans at the Bank. Likewise, RYAN, BURNELL, and BEEBE submitted loan documents to authorize Bank funds to be loaned to Treme that included falsehoods relating to Treme’s creditworthiness and the purpose of the loans.
When members of the Board or the Bank’s outside auditors or examiners asked about loans to these borrowers, RYAN, BURNELL, CALLOWAY, and BEEBE made false statements about the borrowers and their loans, and left out the truth about the borrowers’ inability to pay their debts without getting new loans. As a result, the balance on these borrowers’ loans continued to grow. By the time regulators closed First NBC Bank in April of 2017, Gibbs owed the Bank $123 million; Charity owed $18 million; St. Angelo owed $46 million; ADOLPH owed $6 million; Vira owed $39 million; Treme owed $6 million; and Dunlap owed $22 million. The Bank’s failure cost the Federal Deposit Insurance Corporation deposit insurance fund just under $1 billion.
RYAN, BURNELL, CALLOWAY, and BEEBE each received substantial compensation from the Bank during the course of the conspiracy. RYAN also received personal benefits from three of the borrower relationships. Vira lent millions of dollars to RYAN at the same time Vira was a borrower at the Bank, and RYAN and Vira conspired to hide their business dealings from the Board, auditors, and examiners. Treme was RYAN’s partner in several businesses and real estate development projects, and RYAN used Treme’s borrowing from the Bank as a way to spend Bank loan proceeds on RYAN’s own projects. Even when parts of RYAN’s business dealings with Vira and Treme were revealed to regulators, RYAN continued to conceal from regulators that he exercised authority over loans to Vira and Treme. Dunlap was a contractor for a business that RYAN and Treme ran, and RYAN used loan proceeds from Dunlap’s business to benefit his own development project, Wadsworth Estates. RYAN never disclosed his business relationship with Dunlap to the Board, auditors, or examiners. BURNELL was aware of this business relationship and also never disclosed it to the Board, auditors, or examiners.
“Along with our partners, the FBI has dedicated significant time and resources toward investigating the failure of First NBC Bank, which resulted in nearly a billion dollar loss to the FDIC,” stated FBI New Orleans Special Agent in Charge Bryan Vorndran. “We will continue to investigate allegations of fraud by First NBC bank insiders until all those responsible for its failure are identified and brought to justice.”
“Today’s indictment sends a clear message that bank executives who engage in fraud that impacts the safety and soundness of financial institutions will be held accountable for their actions,” said Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.
“Today’s indictment demonstrates the FDIC OIG and our law enforcement partners will continue to pursue individuals who defraud our insured financial institutions and cause harm to the nation’s banking industry,” said Anand Ramlall, Special Agent in Charge, Dallas Region, Office of Inspector General for the Federal Deposit Insurance Corporation.
RYAN, BURNELL, CALLOWAY, BEEBE, and ADOLPH are each charged in Count 1 of the Superseding Indictment with conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. RYAN, BURNELL, CALLOWAY, BEEBE, and ADOLPH are also charged with multiple instances of bank fraud, as listed in Counts 2 through 37, in violation of Title 18, United States Code, Section 1344. RYAN, BURNELL, BEEBE, and CALLOWAY are charged with making false entries in bank records, in violation of Title 18, United States Code, Section 1005, as listed in Counts 38 through 49. For each of the charged counts, the maximum penalties that may be imposed upon conviction are thirty years in prison; a fine of $1,000,000, or the greater of twice the gain to a defendant or twice the loss to any victim; up to five years of supervised release; and a $100 mandatory special assessment.
The United States Attorney’s Office stated that an Indictment is merely an accusation and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation; the Federal Deposit Insurance Corporation, Office of Inspector General; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General. Assistant U.S. Attorneys Sharan E. Lieberman, Matthew R. Payne, Nicholas D. Moses, J. Ryan McLaren, and K. Paige O’Hale are in charge of the prosecution.