Eastern District of Louisiana
Press releases recorded for this federal judicial district.
Honduran National Indicted for Possession of Fraudulent Immigration DocumentsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DANIEL IGNACIO MEJIA-CASTILLO (MEJIA), age 31, a citizen of the Honduras, was charged on September 18, 2020 in a one-count indictment for possession of fraudulent immigration documents, in violation of 18 U.S.C. ' 1546(a).
According to the indictment, MEJIA was charged with possessing a counterfeit Permanent Resident card that was not assigned to him by the United States Citizenship and Immigration Services.
MEJIA faces a maximum term of imprisonment of ten years, a fine of up to $250,000.00, two years supervised release after imprisonment, and a $100 special assessment.
U.S. Attorney Strasser praised the work of the Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Spiro George Latsis is in charge of the prosecution.
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Slidell Couple Indicted for Conspiracy to Commit Mail Fraud and Mail FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that on September 19, 2020, WILLIAM LEWIS, age 41, and JILL LEWIS, age 40, residents of Slidell, Louisiana, were charged in a two-count Indictment for conspiracy to commit mail fraud and mail fraud, in violation of Title 18, United States Code, Sections 371 and 1341, and Title 28, United States Code, Section 2461(c).
According to Court documents, beginning on or before January 31, 2014 through in or around January 2016, the defendants conspired to submit numerous false insurance claims for reimbursement to the United States Postal Service (“USPS”), causing the USPS to mail checks to WILLIAM and JILL LEWIS for approximately $42,000. For example, WILLIAM and JILL LEWIS falsely represented to the USPS that they had sent expensive jewelry and other items through the mail and that the USPS lost the items. In connection with the false claims, WILLIAM and JILL LEWIS submitted forged invoices from retailers to the USPS to support the reimbursement amounts. The false claims and forged documents caused the USPS to send the reimbursement checks to the defendants through the mail.
In addition, according to Court documents, on or about September 29, 2015, the defendants submitted a false claim to the USPS, fraudulently representing that WILLIAM LEWIS purchased an Omega watch in the amount of approximately $4,999 and that the USPS lost the watch in the mail. This false and fraudulent claim for reimbursement caused the USPS to send a $4,999 reimbursement check to WILLIAM LEWIS that he deposited in his bank account.
If convicted, the defendants face up to 20 years of imprisonment, a fine up to $250,000, and restitution to the USPS in the amount of approximately $42,000.
U.S. Attorney Peter G. Strasser praised the work of the United States Postal Service, Office of Inspector General, for its work in investigating this case. U.S. Attorney Strasser reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorney Sharan E. Lieberman.
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New Orleans Man Charged in Federal Court for Hobbs Act Robberies, Possession, and Brandishing of a Firearm during a Crime of ViolenceRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JARRELL FOX, (“FOX”) age 29, of New Orleans, was charged on September 18, 2020 in an eight-count Indictment with four Hobbs Act Robberies, in violation of Title 18, United States Code, Section 1951(a), three counts of Brandishing a Firearm During a Crime of Violence in violation of Title 18, United States Code, Section 924(c)(1)(a)(ii), and one count of Possession of a Firearm During a Crime of Violence in violation of Title 18, United States Code, Section 924(c)(1)(a)(i).
The federal indictment alleges that FOX committed the armed robberies of four businesses located in the New Orleans East and Mid-City areas of New Orleans while either brandishing or possessing a firearm.
If convicted of the Hobbs Act Robbery violations, FOX faces a maximum term of imprisonment of 20 years, a fine of up to $250,000.00, a period of up to 3 years supervised release, and a mandatory special assessment (”MSA”) of $100.00. If convicted of Brandishing a Firearm During a Crime of Violence, FOX faces a mandatory consecutive sentence of 7 years to life imprisonment, up to a $250,000.00 fine, up to 5 years supervised release, and a $100 MSA. If convicted of Possessing a Firearm During a Crime of Violence, FOX faces a mandatory consecutive sentence of 5 years to life imprisonment, up to a $250,000.00 fine, up to 5 years supervised release, and a $100 MSA. Any sentence imposed regarding the firearm offenses will run consecutive to the sentence imposed for the violation of the Hobbs Act Robbery offenses.
U. S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Bureau of Alcohol, Tobacco, Firearms and Explosives. For more information about Project Guardian, please see https://www.justice.gov/usao-edla/project-guardian.
This case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Federal Grand Jury Indicts New Orleans Man for Firearms ViolationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced on Friday, September 18, 2020, that TYREET JOURNEE, age 29, a resident of New Orleans, Louisiana was charged in a one-count indictment by a federal grand jury. In the indictment, JOURNEE is charged with possession of firearms and ammunition by a convicted felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
If convicted, JOURNEE faces a maximum sentence of 10 years imprisonment, a fine up to $250,000.00, a period of supervised release up to 3 years, and a mandatory special assessment fee of $100.00.
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.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Bureau of Alcohol, Tobacco, Firearms and Explosives. For more information about Project Guardian, please see https://www.justice.gov/usao-edla/project-guardian.
The case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
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Federal Grand Jury Indicts New Orleans Man for Firearm ViolationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced on Friday, September 18, 2020, that LLOYD WASHINGTON, (“WASHINGTON”) age 25, a resident of New Orleans, Louisiana was charged in a three-count indictment by a federal grand jury. In Count 1, WASHINGTON is charged with Possession of Firearms and Ammunition by a Convicted Felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). In Count 2, WASHINGTON is charged with Possession of Machine Guns in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2). In Count 3, WASHINGTON is charged with Possession of Non-Registered Firearms in violation of Title 26, United States Code, Sections 5841, 5861(d), and 5871.
If convicted, WASHINGTON faces a maximum sentence of 10 years imprisonment, a fine up to $250,000.00, a period of supervised release up to 3 years, and a mandatory special assessment fee of $100.00 for each charge.
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.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Bureau of Alcohol, Tobacco, Firearms and Explosives. For more information about Project Guardian, please see https://www.justice.gov/usao-edla/project-guardian.
This case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Twenty-Eight Now Charged in Federal Probe into the Staging of Automobile AccidentsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced today the indictment of nine additional defendants bringing the total to twenty-eight charged for intentionally staging automobile accidents. Today’s indictment charges CORNELIUS GARRISON (“GARRISON”), age 54, of New Orleans, Louisiana; DONIESHA GIBSON (“GIBSON”), age 29, of New Orleans, Louisiana; CHANDRIKA BROWN (“BROWN”), age 29, of Slidell, Louisiana; ISHAIS PRICE (“PRICE”), age 49, of New Orleans, Louisiana; AISHA THOMPSON (“THOMPSON”), age 42, of New Orleans, Louisiana; DEWAYNE COLEMAN (“COLEMAN”), age 21, of Marrero, Louisiana; DONISESHA LEE, age 30, of Harvey, Louisiana; DONREION LEE, age 22, of Harvey, Louisiana; and ERICA LEE THOMPSON (“ERICA LEE”), age 46, of Harvey, Louisiana. These nine defendants were charged in a seven-count federal indictment with one (1) count of Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371 and six (6) counts of Mail Fraud in violation of Title 18, United States Code, Section 1341. The indictment alleges that the defendants intentionally used vehicles to cause staged motor vehicle accidents with commercial carriers in order to defraud these carriers and their insurance companies. If convicted, the defendants face a maximum penalty of five (5) years for Count 1 and twenty (20) years as to Counts 2-7. Upon their release from prison, each defendant can be placed on a term of supervised release for up to five (5) years and fined up to $250,000.00 per count or twice the gross gain to the defendant of twice the gross loss to the victim.
According to today’s indictment and previous indictments, there were five (5) “slammers,” that is individuals who intentionally caused motor vehicle accidents to defraud commercial vehicles and insurance companies, operating in the New Orleans metropolitan area. Two alleged slammers, Damian Labeaud and Roderick Hickman, are charged in previous indictments, and, two additional alleged slammers have since died. Today’s indictment alleges that GARRISON was a slammer.
GARRISON is charged with staging over 50 accidents and was paid over $150,000 by an unnamed Co-Conspirator (“Co-Conspirator A”). Co-Conspirator A instructed GARRISON as to the number of passengers to use in the staged accidents and to avoid areas patrolled by the Louisiana State Police and instead stage the accidents under the jurisdiction of the New Orleans Police Department. The indictment alleges that Co-Conspirator A referred the staged accident cases to an attorney referenced as Attorney B. GARRISON staged accidents mostly on Interstate 10 from Slidell to Baton Rouge and usually at night to avoid eyewitnesses. GARRISON targeted commercial vehicles, including tractor-trailers, that were changing lanes and would cause the accident by striking the commercial vehicle or tractor-trailer in their blind spot, using the slammer vehicle. After the accident, GARRISION would usually exit the vehicle from the passenger side in order to avoid being seen by the driver of the target vehicle. GARRISON instructed the passengers to call 911 to report that they had been hit by a vehicle. A passenger in the vehicle would falsely claim to have been the driver at the time of the staged accident.
The instant indictment charges GARRISON with staging two accidents. The first occurred on October 15, 2015, and involved a Hotard bus. GARRISON intentionally drove a 2014 Dodge Avenger owned by GIBSON into a Hotard bus while traveling on the I-10 near the flyover of the I-510. Also in the vehicle were defendants BROWN and PRICE. Total settlement for the Hotard bus accident was approximately $677,500.
The second staged accident charged in this indictment occurred on September 6, 2017, on the I-10 near the Almonaster exit when GARRISON crashed defendant ERICA LEE’s 2015 RAV4 into a tractor-trailer owned by Averitt Express. The passengers in this vehicle were COLEMAN, DONISEHA LEE, DONREION LEE, and an unknown female passenger who gave the name Aisha Thompson to the police after the staged accident. Total settlement for the Averitt accident was $30,000.
In total, the victim trucking, bus, and insurance companies paid out approximately $707,500.00 for these two fraudulent claims.
An arrest warrant was issued for COLEMAN. The remaining defendants will be required to appear, at a later date, before a United States Magistrate Judge for an initial appearance and arraignment on this indictment.
U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit; Assistant U.S. Attorney Edward Rivera; and Assistant U.S. Attorney Maria Carboni.
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Man Sentenced for Misuse of Social Security NumberRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that RAYMUNDO DE LA PAZ (DE LA PAZ), age 28, was sentenced on September 17, 2020 by United States District Court Judge Mary Ann Vial Lemmon, after previously pleading guilty to a one-count bill of information charging him with misuse of a Social Security Number, in violation of Title 18, United States Code, Section 408(a)(7)(B).
Judge Lemmon sentenced DE LA PAZ to probation for one year to include six months of home confinement and a $100 special assessment fee.
According to court documents, DE LA PAZ, a citizen of Mexico, presented a false Social Security card when attending a pre-employment safety class at the Gulf Coast Safety Council in St. Rose, Louisiana. DE LA PAZ falsely represented that a social security number was assigned to him when in fact; the social security number had been assigned by the Commissioner of Social Security to another individual.
U.S. Attorney Peter G. Strasser praised the work of the United States Border Patrol and the Office of Inspector General, Social Security Administration. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
Mexican National Sentenced to 18 Months for Timeshare Telemarketing ScamRead the Press Release
NEW ORLEANS –JULIO CESAR RIVERA ROJAS, age 33, a resident and citizen of Mexico, was sentenced on September 16, 2020 to 18 months in the Bureau of Prisons after pleading guilty to one count of conspiracy to commit wire fraud by U.S. District Court Judge Jane Triche Milazzo of the Eastern District of Louisiana, announced U.S. Attorney Peter G. Strasser.
As detailed in the factual basis and superseding bill of information, the defendants, from at least January 1, 2016, to the present, conspired together and with others to commit wire fraud in connection with a telemarketing scheme that targeted and victimized persons in the United States, Canada and South America. As part of the elaborate scheme, the conspirators made unsolicited phone calls to owners of resort timeshare properties to induce them to pay fees associated with the bogus sale of their property. The defendants misrepresented the existence of a buyer for their timeshare and solicited money from the victims to facilitate the sale. They solicited the timeshare owners to enter into agreements to sell their timeshares and pay for alleged “closing costs” with electronic wire transfers from banking institutions within the United States to Mexican banks. There were no interested buyers, the closings did not occur, and the timeshares were not resold. Instead, the conspirators simply pocketed the advanced fees. Of the U.S. victims, 40 were age 60 and older and the total estimated loss is at least $10,000,000.
The defendants, who are all based in Mexico, operated under the business names Planet Travel and Newport International Investments, and at other times used the following business names: Advance Travel INC, All American Real Estate, American International Investment Group, Bear Claw Travel, Best Investment Services, Champion Properties, Closing Source LLC, Equity Closing Services Group, Global Offshore Services, NSC Holding, Peach Title, Sandia Title, Travel and Acquisitions, Travel Innovations, Travel Plus Acquisitions, Travel Right, and World Travelers, Inc. All of these domain websites have been seized by the Federal Bureau of Investigation and the Department of Justice.
Elder fraud complaints may be filed with the Federal Trade Commission at www.ftccomplaintassistant.gov or at 1-877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime at www.ovc.gov. Additional elder justice resources, training, and outreach materials can be found at the Elder Justice Website at www.elderjustice.gov.
RIVERA ROJAS, who worked as an accountant, was ordered to pay restitution of $4,000,000 USD, a fee of $100.00, and he is subject to deportation after serving 18 months. To date, one other defendant, Jesus Ledesma Bernal, was sentenced to 18 months in the Bureau of Prisons on August 4, 2020, for his role as a telemarketer in this criminal organization.
This case is the product of an extensive and ongoing investigation by special agents of Federal Bureau of Investigation. Assistant United States Attorneys Edward J. Rivera and Paige O’Hale are prosecuting the case.
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Hotel Owner Pleads Guilty to Conspiring with Bank President to Defraud First NBC BankRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that ARVIND “MIKE” VIRA (“VIRA”), age 74, a resident of New Orleans, Louisiana, pled guilty today to a years-long conspiracy with First NBC Bank president Ashton J. Ryan to defraud the New Orleans-based bank that failed in April 2017.
According to court documents, in 2006, Ryan lobbied VIRA to move his business accounts to First NBC Bank. VIRA agreed and became a customer of First NBC Bank. Thereafter, Ryan provided VIRA with preferential treatment. Although VIRA was assigned another loan officer, Ryan acted as his de facto loan officer at the bank. Ryan provided VIRA with low interest rates for VIRA’s loans. He also ensured that VIRA received high interest rates on his savings and checking accounts. Ryan personally approved 3% interest rates for savings and checking accounts held by VIRA, his businesses, and his family members. Ryan instructed VIRA to inflate his assets on bank loan documents, and VIRA complied by claiming to have substantial real estate and outside bank accounts that did not exist.
VIRA, in turn, provided personal loans to Ryan at Ryan’s request. Ryan, knowing that such a loan relationship was prohibited by banking regulations, instructed VIRA to conceal this personal loan relationship from First NBC Bank employees. During an FDIC regulatory exam in December 2012, FDIC examiners discovered that Ryan had borrowed money from First NBC Bank using VIRA’s loan proceeds. When examiners questioned him, Ryan admitted to their relationship, but claimed that he had not been aware that the source of the funds were First NBC Bank loan proceeds.
In order to further conceal the loans that he made to Ryan, VIRA misrepresented or omitted the interest payments he received from Ryan on his personal tax returns from 2011 through 2015. From 2011 through 2017, VIRA received approximately $1,220,271.07 in profits from Ryan’s interest payments and from Ryan’s preferential treatment at First NBC Bank.
“The FBI and our law enforcement partners have dedicated significant time and resources toward investigating the failure of FNBC, which resulted in nearly a billion dollar loss to the FDIC. Individuals like Mr. Vira who engage in fraudulent schemes that impact the security of financial institutions are being held accountable. His guilty plea today should be a deterrent to others who would attempt to defraud our nation's banking system,” said Bryan Vorndran, FBI New Orleans Special Agent in Charge.
“We are pleased to work with our law enforcement partners in bringing to justice those who conspire to defraud financial institutions regulated and supervised by the Federal Reserve Board,” 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.
“We are pleased to join our law enforcement colleagues in bringing Mr. Vira to justice,” stated Laurie Younger, Special Agent in Charge of the Office of Inspector General for the Federal Deposit Insurance Corporation.
VIRA pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 371 and 1344. The maximum penalties that may be imposed at sentencing are five years in prison; a fine of $250,000 or the greater of twice the gain to VIRA or twice the loss to any victim; and up to three years of supervised release.
U.S. District Judge Nannette Jolivette Brown set VIRA’s sentencing for January 7, 2020.
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, and J. Ryan McLaren are in charge of the prosecution.
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Federal Grand Jury Indicts Men for Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that on Friday, September 4, 2020 TERRAN WILLIAMS, a/k/a “Funky,” age 22, and ALLEN GRAY, a/k/a “Kyedi,” age 24, both residents of New Orleans, Louisiana, were charged in a sealed three-count indictment by a Federal Grand Jury for violations of the Federal Gun Control Act and the Federal Controlled Substances Act. Both defendants are in federal custody and the Indictment was unsealed on September 15, 2020.
WILLIAMS and GRAY are charged in Count 1 with possession with intent to distribute a quantity of marijuana and fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(C) and (b)(1)(D). In Count 2, WILLIAMS and GRAY are charged with possession of firearms in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). In Count 3, WILLIAMS and GRAY are charged with possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
If convicted of Count 1, WILLIAMS and GRAY face a maximum sentence of 20 years imprisonment, a fine of $1,000,000, at least 3 years of supervised release, and a special assessment fee of $100. If convicted of Count 2, WILLIAMS and GRAY face a mandatory minimum sentence of 5 years up to life imprisonment, which is to run consecutively to all other sentences, a $250,000 fine, up to 5 years of supervised release and a special assessment fee of $100. If convicted of Count 3, WILLIAMS and GRAY face a maximum term of imprisonment of 10 years, a $250,000 fine, up to 3 years of supervised release, and a special assessment fee of $100.
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.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: the New Orleans Police Department and the Federal Bureau of Investigation
The case is being prosecuted by Assistant United States Attorney Elizabeth Privitera, Inga Petrovich and David Haller of the Violent Crime Unit of the U.S. Attorney’s Office.
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Louisiana Company Pleads Guilty to Conspiracy to Defraud the Government and Violate the Procurement Integrity ActRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser and Makan Delrahim, Assistant Attorney General for the Antitrust Division of the Department of Justice, announced that CAJAN WELDING & RENTALS, LTD., a company located in Opelousas, Louisiana, pleaded guilty on September 8, 2020 to one count of conspiracy to defraud the United States and to violate the Procurement Integrity Act, in violation of 18 U.S.C. § 371.
According to admissions made in connection with its guilty plea, CAJAN WELDING & RENTALS, LTD. conspired with 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.
The charged offense carries a statutory maximum fine of $500,000.00, a term of probation of up to five years, and a special assessment of $400.00 for companies.
“Fraud, regardless of its scope and means of orchestration, is a serious crime. Especially egregious is fraud committed against the hardworking taxpayer, said U.S. Attorney of the Eastern District of Louisiana Peter G. Strasser.” This guilty plea sends a clear message that our office will vigorously investigate and prosecute all such corruption cases.
“Today’s guilty plea demonstrates that corruption of the bidding process for a vital federal program like the Strategic Petroleum Reserve will not be tolerated. The Justice Department is committed to investigate and prosecute collusion that impacts government procurement to the fullest extent of the law,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Antitrust Division will remain vigilant in protecting taxpayer funds through competition, and will continue to work with the U.S. Attorney’s Office and our law enforcement partners to safeguard the federal procurement process.”
“The Department of Energy Office of Inspector General remains committed to ensuring the integrity of the Department's contractors and subcontractors,” said Teri L. Donaldson, Department of Energy Inspector General. “We take allegations of procurement integrity violations very seriously and will aggressively investigate these matters to protect the Department and the American taxpayers. “We appreciate the efforts of the DOJ in pursuing these allegations and will continue our collaboration with the DOJ to investigate those who seek to defraud Department programs.”
The case is the result of a federal investigation being conducted by the United States Attorney’s Office in the Eastern District of Louisiana, the Department of Justice Antitrust Division’s Washington Criminal II Section, and the Department of Energy’s Office of the Inspector General.
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Harvey Man Indicted for Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – LAMONT REED, age 26, a resident of Harvey, was charged in an indictment with being a felon in possession of ammunition, in violation of the Federal Gun Control Act announced U.S. Attorney Peter G. Strasser.
REED was indicted by a Federal Grand Jury on September 4, 2020 in a one count indictment for possessing rifle ammunition after having been convicted of two different felony offenses. REED faces up to 10 years imprisonment, a fine of up to $250,000 and up to three years of supervised release following any term of imprisonment.
U. S. Attorney Peter Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Covington Police Department. The prosecution is being handled by Assistant United States Attorney David Haller.
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Federal Grand Jury Indicts Two Men for Carjacking and Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced on Friday, September 4, 2020 that RICHARD JONES, age 22, and KAHLIQ WILLIAMS, age 20, residents of New Orleans, LA, are charged in a six-count indictment. Counts 1 and 3 of the indictment charges JONES and WILLIAMS for their alleged participation in the carjacking of a man on Eastern Street in New Orleans, LA on April 16, 2020, and the burglary of C&S Gun Parlor in Covington, LA on April 17, 2020. In Count 4, WILLIAMS is charged with an additional carjacking, which took place on May 19, 2020, in the 7600 block of Trapier Avenue in New Orleans, LA. Count 6 charges JONES with being a felon in possession of a firearm on May 22, 2020, the date of his arrest. Finally, in Counts 2 and 5, both JONES and WILLIAMS are charged with using a firearm in the commission of a crime of violence.
In Counts 1 and 4 of the indictment, JONES and WILLIAMS are charged with carjacking, in violation of Title 18, United States Code Section 2119. If convicted, both face a maximum sentence of 15 years of imprisonment, a fine up to $250,000.00, a period of 3 years supervised release, and a mandatory special assessment of $100.00. In Counts 2 and 5, JONES and WILLIAMS are charged with using a firearm in furtherance of a crime of violence in violation of Title 18, United States Section, 924(c)(1). If convicted, both face a mandatory minimum sentence of 7 years to 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. In Count 3, JONES and WILLIAMS are charged with burglary of a federal firearm licensee in violation of Title 18 United States Code Section 922(u). If convicted, both face a maximum sentence of 10 years, up to a $250,000 fine, up to 3 years supervised release, and a mandatory special assessment of $100.00. Finally, in Count 6, JONES is charged with being a felon in possession of a firearm in violation of Title 18 United States Code Section 922(g)(1) and 18 United States Code Section 924(a)(2). If convicted, JONES 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 Strasser reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: the Bureau of Alcohol, Tobacco, and Firearms, the New Orleans Police Department, and the Jefferson Parish Sheriff’s Office.
The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms, the New Orleans Police Department, the St. Tammany Parish Sheriff’s Office, and the Jefferson Parish Sheriff’s Office. 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.
Bogalusa Man Sentenced After Pleading Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that on September 8, 2020, United States District Judge Greg G. Guidry sentenced ADAM LUMPKIN, age 35, a resident of Bogalusa, Louisiana, to 78 months’ imprisonment followed by 5 years’ supervised release after pleading guilty on October 22, 2019, to possession with intent to distribute 50 grams or more of actual methamphetamine.
According to court documents, on December 14, 2018, agents and officers with the Drug Enforcement Administration received information that LUMPKIN was traveling to a motel in Hammond, Louisiana with a quantity of methamphetamine. After LUMPKIN arrived at the motel, agents approached LUMPKIN’S vehicle and observed him throw a bag containing methamphetamine on to the floor of his vehicle. A search of the vehicle revealed more than 50 grams of methamphetamine, a box of sandwich bags, and two digital scales. In a post-arrest interview, LUMPKIN acknowledged that he was preparing to distribute the methamphetamine at the time of his arrest.
U.S. Attorney Strasser praised the work of the United States Drug Enforcement Administration, Tangipahoa Parish Sheriff’s Office, and Hammond Police Department. Assistant United States Attorneys Paige O’Hale and André Jones are in charge of the prosecution.
Former Asbestos Contractor Pleads Guilty to Theft of Federal Program FundsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that MARC A. VICTORIANO (VICTORIANO), age 46, of Covington, Louisiana, pleaded guilty today to one-count of theft from a program receiving federal funds before United States District Court Judge Lance M. Africk.
According to court documents from 2015 to 2017, VICTORIANO and his company, Professional Safety Consultants, LLC, ("PSC") provided asbestos inspections for the Terrebonne Parish School Board ("TPSB") as mandated by the Asbestos Hazard Emergency Response Act ("AHERA"). VICTORIANO submitted 56 invoices to TPSB with fraudulent asbestos laboratory reports including false air monitoring and false asbestos testing reports. VICTORIANO also submitted nine invoices to TPSB for AHERA reports with forged signatures and accreditation information. As a result, TPSB paid VICTORIANO approximately $212,618.26 to which he was not entitled, in violation of Title 18, United States Code, Section 666(a)(1)(A).
“The Asbestos Hazard Emergency Response Act (AHERA) is designed to protect our schools from hazardous air pollutants”, said Special Agent in Charge Christopher Brooks of EPA’s Criminal Investigation Division in Louisiana. “Today’s guilty plea demonstrates that individuals who intentionally violate federal laws will be held responsible for their crimes.”
VICTORIANO faces a maximum term of imprisonment of not more than ten years, a fine of $250,000.00, and up to three years (3) years of supervised release. Sentencing is scheduled for December 16, 2020.
U.S. Attorney Strasser praised the work of the United States Environmental Protection Agency, Criminal Investigation Division; the Louisiana State Police; Louisiana Department of Environmental Quality, Criminal Investigation Section and the Louisiana Environmental Crimes Task Force, for their investigation of the matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
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Developer Admits to Conspiring with First NBC Bank President to Defraud First NBC BankRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that WARREN G. TREME (“TREME”), age 55, a resident of Metairie, Louisiana, pleaded guilty today to conspiracy to defraud First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to court documents, from in or around 2008 through April 2017, TREME had a banking relationship with First NBC Bank, individually and through various entities he controlled. TREME also co-owned several entities with Ashton J. Ryan (“Ryan”), President of First NBC Bank. Because of this conflict of interest, Ryan should not have been involved with TREME’s loans. However, Ryan exercised authority over TREME’s loans with William J. Burnell (“Burnell”), the Bank’s Chief Credit Officer. Throughout TREME’s borrowing relationship at First NBC Bank, TREME lacked sufficient income and cash flow from his businesses to pay his loans and personal expenses. Ryan and Burnell disguised TREME’s true financial condition by making new loans to pay TREME’s existing loans. TREME is the third person to be charged for defrauding First NBC Bank through a business relationship with Ryan, while hiding the fraud from the Bank’s Board, auditors, and examiners. Jeffrey Dunlap, a contractor on Ryan’s project with TREME, has already pled guilty to conspiring with Ryan to fund both that project and his lifestyle by defrauding the Bank. More recently, Arvind “Mike” Vira was charged with conspiring to defraud the Bank, with Ryan’s help, by submitting false financial documents to the Bank while Ryan was personally borrowing from Vira. In addition, on July 10, 2020, a grand jury indicted Ryan, Burnell, First NBC Executive Vice President Robert B. Calloway, and borrower Frank J. Adolph for their roles in the conspiracy to commit bank fraud against First NBC, including fraud involving the TREME loans.
Court documents further describe a scheme by Ryan and Burnell to take $400,000 from TREME’s business partners as part of a settlement. Rather than using the $400,000 to pay down an outstanding loan debt owed by TREME and his business partners, Ryan and Burnell gave $300,000 to TREME. TREME spent the money on gambling, a trip to the Caribbean, and expenses related to a real estate development company TREME co-owned with Ryan. During a subsequent Board meeting, Ryan and Burnell falsely stated that the $300,000 was used to pay down the outstanding loan debt owed by TREME and his business partners.
“The FBI and our law enforcement partners have dedicated significant time and resources toward investigating the failure of FNBC, which resulted in nearly a billion dollar loss to the FDIC. Individuals like Mr. Treme who engage in fraudulent schemes that impact the security of financial institutions are being held accountable. His guilty plea today should be a deterrent to others who would attempt to defraud our nation's banking system,” said Bryan Vorndran, FBI New Orleans Special Agent in Charge.
“We will hold accountable those wrongdoers whose fraudulent actions materially impact financial institutions regulated and supervised by the Federal Reserve Board. I commend our agent and law enforcement partners for their hard work that ultimately led to today’s guilty plea,” 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.
“We are pleased to join our law enforcement colleagues in bringing Mr. Treme to justice,” stated Laurie Younger, Special Agent in Charge of the Federal Deposit Insurance Corporation, Office of Inspector General.
TREME pleaded guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. 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 TREME or twice the loss to any victim; up to five years of supervised release; and a $100 mandatory special assessment.
Judge Sarah S. Vance set TREME’s sentencing on January 6, 2021, at 10:30a.m.
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, Nicholas D. Moses, Matthew R. Payne, and J. Ryan McLaren are in charge of the prosecution.
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Developer Admits to Working with Bank Executives to Defraud First NBC Bank Out of over $123 MillionRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that GARY R. GIBBS (“GIBBS”), age 66, a resident of Niceville, Florida, pled guilty today to conspiracy to defraud First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to court documents, from in or around 2010 through April 2017, GIBBS had a banking relationship with First NBC Bank, individually and through various corporate entities he controlled. During that time, GIBBS and his entities were regularly unable to pay existing loans or overdrafts on First NBC Bank accounts. Bank President Ashton Ryan Jr., Chief Credit Officer William Burnell, and Executive Vice President Robert Calloway, who were all charged on July 10 in a 46-count indictment, disguised GIBBS’s and his entities’ true financial condition by making new loans to pay GIBBS’s existing loans and to cover his overdrafts. They falsely stated in loan documents that GIBBS was able to pay his loans with cash generated by his businesses, and they hid from the First NBC Bank Board of Directors, auditors, and examiners that GIBBS was only making his existing loan payments by getting new loans from First NBC Bank. Ryan, Burnell, and Calloway hid the fact that they actually made loans to GIBBS to keep him and his entities off of month-end reports to the Board, auditors, and examiners. These month-end reports listed borrowers who were not paying their loans or whose accounts were overdrawn. By keeping GIBBS and his entities off of those reports, Ryan, Burnell, and Calloway were able to hide their scheme to keep lending to GIBBS despite his inability to pay his loans.
When GIBBS told Ryan and Calloway that he was considering filing bankruptcy or not paying his loans, Ryan told GIBBS that First NBC Bank could not afford for GIBBS to default on the loans. After that, Ryan, Burnell, and Calloway continued to make false statements and material omissions in loan documents to hide from the Board, auditors, and examiners that the purpose of the new loans was to keep GIBBS and his entities from defaulting and that, in reality, GIBBS was not able to make his payments to the bank without receiving proceeds from new loans. Neither Ryan nor Calloway ever disclosed to the Board, auditors, or examiners that GIBBS was considering defaulting on his loans or filing bankruptcy, because that would have revealed that GIBBS did not generate enough cash to pay his loans.
To hide their scheme, Ryan directed GIBBS to inflate certain financial statements that GIBBS provided to First NBC Bank, by falsely increasing the income of GIBBS’s entities to hide the amount of money these entities were losing. Ryan did not tell the Board, auditors, or examiners that GIBBS inflated his financial statements at Ryan’s direction. Calloway also made false statements to First NBC Bank’s external auditors about GIBBS and his loans. By the time First NBC Bank failed in April of 2017, GIBBS and his entities owed the bank over $123 million.
“Today’s guilty plea demonstrates the FDIC OIG and our law enforcement partners will not tolerate criminals who defraud our insured financial institutions and cause harm to the nation’s banking industry,” said Laurie Younger, Special Agent in Charge, Dallas Region, Office of Inspector General for the Federal Deposit Insurance Corporation.
“The FBI and our law enforcement partners have dedicated significant time and resources toward investigating the failure of FNBC, which resulted in nearly a billion dollar loss to the FDIC. This guilty plea should be a deterrent to others who would attempt to manipulate the nation's banking system,” said Bryan Vorndran, FBI New Orleans Special Agent in Charge.
“We are committed to working with our law enforcement partners in holding accountable wrongdoers whose fraudulent actions materially impact financial institutions regulated and supervised by the Federal Reserve Board,” 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.
GIBBS pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. The maximum penalties that may be imposed at sentencing are thirty years in prison; a fine of the greater of twice the gain to GIBBS or twice the loss to any victim; and up to five years of supervised release.
Judge Jane Triche Milazzo set GIBBS’s sentencing for December 2, 2020.
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, Nicholas D. Moses, Matthew R. Payne, and J. Ryan McLaren are in charge of the prosecution.
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Covington Man Charged with Making a False Declaration in Connection with a BankruptcyRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that PENH KANG (“KANG”), age 41, of Covington, Louisiana, was charged by a bill of information on August 25, 2020 with Making a False Declaration, in violation of Title 18, United States Code, Section 152(3).
According to the bill of information, 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 Penh Kang, No.17-12431, by submitting a Schedules of Assets and Liabilities and a Statement of Financial Affairs, in which the defendant fraudulently answered questions, in that 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. Attorney Strasser reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, KANG faces a maximum penalty of five (5) 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 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, Supervisor of the Financial Crimes Unit.
Metairie Man Pleads Guilty to Embezzling over $7 Million from His Employer and Filing False Tax ReturnsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DEEPAK “JACK” JAGTIANI, age 60, a resident of Metairie, pleaded guilty today before U.S. District Judge Jay C. Zainey. JAGTIANI admitted his guilt to both counts of the indictment that was filed against him in December 2019, 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 partners 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 a total of $1,232,267.00 in federal income taxes.
As to Count 1, wire fraud, JAGTIANI faces a maximum of 20 years in prison, a $250,000.00 fine, and up to three years of supervised release. As to Count 2, filing false tax returns, JAGTIANI faces a maximum of three years of imprisonment, a $250,000.00 fine, and up to one year of supervised release. Judge Zainey scheduled the sentencing hearing for November 17, 2020.
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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Marrero Man Sentenced After Pleading Guilty to Cocaine ConspiracyRead the Press Release
NEW ORLEANS –U.S. Attorney Peter G. Strasser announced that, on August 20, 2020, U.S. District Mary Ann Vial Lemmon sentenced DERRIS HELTON, age 37, of Marrero, Louisiana, to seventy-two (72) months’ imprisonment and (4) four years’ supervised release after pleading guilty to a one-count superseding bill of information charging him with conspiracy to distribute and possess with intent to distribute (500) five hundred grams or more of cocaine hydrochloride and twenty-eight grams or more of cocaine base (“crack”).
According to court documents, in 2016, agents of the Drug Enforcement Administration (DEA) New Orleans identified HELTON as a cocaine trafficker in the New Orleans area. Using a confidential source, agents made two controlled purchases of crack from HELTON totaling more than one hundred grams. Through telephone wiretaps, agents identified HELTON’S co-conspirators, including HELTON’S brother, Phillip, and Robert Gaines. During a monitored telephone call in July 2017, HELTON and his brother Phillip discussed having Gaines supply an individual with a quantity of drugs.
On August 1, 2017, agents learned through monitored telephone calls between HELTON and Gaines that HELTON was travelling from Houston, Texas to New Orleans via bus with a large quantity of cocaine. DEA agents and Louisiana State Police troopers stationed themselves at the Greyhound terminal in New Orleans awaiting HELTON’S arrival. When HELTON arrived at the terminal and exited the bus, agents and troopers approached HELTON. After HELTON consented to a search of his bag, agents found approximately 500 grams of cocaine hydrochloride in his bag.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration, the Jefferson Parish Sheriff’s Office, and the Louisiana State Police in investigating this matter. Assistant United States Attorney André Jones in was charge of the prosecution.
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Metairie Man Sentenced to Thirty Seven Months for Bank RobberyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that on August 20, 2020, LEVI HERMAN (HERMAN), age 33, was sentenced by Judge Carl Barbier to (37) thirty-seven months on a one-count Indictment for bank robbery in violation of Title 18, United States Code, Section 2113(a). Additionally, HERMAN was ordered to pay $1,900 in restitution, serve (2) years of supervised release and pay a 100.00 special assessment fee.
According to court documents, HERMAN robbed the Capital One Bank located in New Orleans, Louisiana on December 4, 2019. HERMAN presented a hand written demand note to the bank teller demanding cash and stating that he had a gun. HERMAN escaped with approximately $1,900 dollars in U.S. currency and was apprehended the next day, December 5, 2019.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation, Jefferson Parish Sheriff’s Office and the New Orleans Police Department in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
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Kenner Man Sentenced to 60 Months for Violating the Federal Controlled Substances Act and the Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – On August 20, 2020, United States District Judge Carl Barbier sentenced JAMES CALLERO, age 33, a resident of Kenner, to (60) sixty months in the Bureau of Prisons for conspiring to distribute heroin and conspiring to possession firearms in furtherance of drug trafficking, announced U.S. Attorney Peter G. Strasser.
CALLERO was charged in a six-count indictment with a conspiring to distribute heroin and various firearms offenses. He pleaded guilty to the heroin conspiracy and a firearms conspiracy, admitting that he was distributing heroin with his co-defendant, DOMINIC LEE, and that they shared firearms to protect their drug trafficking activities. CALLERO will serve 60 sixty months in prison to be followed by (4) four years of supervised release
This case was brought as part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U. S. Attorney Peter Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is being handled by Assistant United States Attorney David Haller.
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Eleven More Charged in Expanding Federal Probe into the Staging of Automobile AccidentsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced today the Indictment of RODERICK HICKMAN (“HICKMAN”), age 49, of Baton Rouge, Louisiana; LOIS RUSSELL (“RUSSELL”), age 61, of Gibson, Louisiana; JAMES WILLIAMS (“WILLIAMS”), age 65, of Gibson, Louisiana; TANYA GIVENS (“GIVENS”), age 42, of Gibson, Louisiana; JOHN DIGGS (“J. DIGGS”), age 59, of Thibodaux, Louisiana; HENRY RANDLE (“RANDLE”), age 63, of Gibson, Louisiana; RYAN WHEATEN (“WHEATEN”), age 52, of Lafayette, Louisiana; DAKOTA DIGGS (“DIGGS”), age 25, of Ft. Smith, Arkansas; BERNELL GALE (“GALE”), age 43, of Raceland, Louisiana; MARVEL FRANCOIS (“FRANCOIS”), age 56, of Houma, Louisiana; and TROY SMITH (“SMITH”), age 56, of Houma, Louisiana. These eleven defendants were charged in a seven-count federal indictment with one (1) count of Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371 and six (6) counts of Mail Fraud in violation of Title 18, United States Code, Section 1341. If convicted, the defendants face a maximum penalty of five (5) years for Count 1 and twenty (20) years as to Counts 2-7. Upon their release from prison, each defendant can be placed on a term of supervised release for up to five (5) years and fined up to $250,000.00 per count.
Today’s indictment charges these defendants and others with intentionally staging automobile accidents with tractor-trailers in New Orleans to defraud trucking and insurance companies through fraud. According to today’s indictment, defendants HICKMAN, RUSSELL, WILLIAMS, GIVENS, and J. DIGGS intentionally collided with a tractor-trailer on March 27, 2017, at the intersection of Chef Menteur Highway and Downman Road. The indictment alleges that HICKMAN intentionally struck the 18-wheeler and then fled the scene with Damian Labeaud (“Labeaud”), who pled guilty to a previous indictment charging him and seven others with staging automobile accidents.
The indictment also alleges that defendants RANDLE, D. DIGGS, and WHEATEN intentionally collided with a tractor-trailer on May 17, 2017, in the area of Calliope Street and US-90 East. Labeaud was the actual driver of the vehicle when he intentionally caused the accident with the tractor-trailer. Mario Solomon, also charged and convicted in an earlier indictment, picked up Labeaud from the collision site. Labeaud participated in another staged accident approximately 30 minutes later in the vicinity of Louisa Street and Chickasaw Street. The participants in the Louisa Street staged accident were FRANCOIS, GALE, SMITH, and another passenger. Again, Labeaud fled the scene.
As discussed in the indictment, the passengers were referred to attorneys who paid HICKMAN and Labeaud to stage the accidents. In some cases, the attorneys knew that the participants were uninjured but referred them to medical providers for treatment to increase the value of subsequent lawsuits. In total, the victim trucking and insurance companies paid out $277,500.00 for these fraudulent claims.
Arrest Warrants were issued for RUSSELL, J. DIGGS, WHEATEN, and D. DIGGS. The remaining defendant’s will be required to appear, at a later date, before a United States Magistrate Judge for an initial appearance and arraignment on this indictment.
U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit, Assistant U.S. Attorney Edward Rivera, Assistant U.S. Attorney Shirin Hakimzadeh, and Assistant U.S. Attorney Maria Carboni.
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Former Avondale Woman Pleads Guilty to Conspiracy to Commit Mail FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that PENNY JOHNSON, age 52, a former resident of Avondale, Louisiana, who now lives in Mississippi, pleaded guilty on August 19, 2020 to one count of conspiracy to commit mail fraud before United States District Court Judge for the Eastern District of Louisiana Sarah S. Vance.
According to the charging document, JOHNSON participated in a “work at home” re-shipping scam wherein internet fraudsters would direct items purchased from sellers such as eBay to JOHNSON’s residence. As part of the scheme, JOHNSON would then inspect the contents and re-ship the mail and other packages to the fraudsters. Prior to the Indictment, JOHNSON had been advised by United States Postal inspectors that she was facilitating a fraud upon eBay and other online customers, but she persisted. JOHNSON went on to make false statements to the inspectors when she was later questioned after the first warning. The stolen/diverted mail included items such as a paintball gun, a drone, two Dyson vacuum cleaners, women’s shoes, two Apple Air Mac books, and a smart phone.
JOHNSON faces a sentence of up to five (5) years in prison on the conspiracy count and up to $250,000 in fines, and up to three (3) years of supervised release. Sentencing is scheduled for December 9, 2020.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service for their investigation of the matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
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Woman Pleads Guilty to Bank RobberyRead the Press Release
NEW ORLEANS, LOUISIANA – CATHOLINE HAMMETT, age 29, a resident of New Orleans, pled guilty to bank robbery before the Honorable Lance Africk, announced U.S. Attorney Peter G. Strasser. HAMMETT faces maximum penalties of 20 years imprisonment, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Sentencing is currently scheduled for December 2, 2020 at 2:00 p.m.
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 Strasser 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, Supervisor of the General Crimes Unit.
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New Orleans Man Pleads Guilty to Gun and Drug OffensesRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that SHEON COPPRUE, age 49, of New Orleans, pled guilty today to charges relating to drug trafficking, firearm possession, and bribery.
COPPRUE pled guilty to conspiring to distribute and to possess with the intent to distribute 50 grams or more of methamphetamine and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), and 846. COPPRUE also pled guilty to possession of a firearm by a felon, in violation of 18 U.S.C. § 922(g)(1), and bribery of a public official, in violation of 18 U.S.C. § 201(b)(1).
According to Court documents, COPPRUE conspired with ALLEN EDGERSON a/k/a “King,” DARNELL JOHNSON a/k/a “Yaggi,” and RACHEL CESARIO to ship large quantities of methamphetamine from California to New Orleans. COPPRUE also bribed codefendant TONYA CALVIN, a postal worker, to deliver the drug-filled packages to him in New Orleans. COPPRUE, who was a felon and prohibited from possessing firearms, was caught with four firearms that he kept at his home and another address where he stored narcotics.
For the drug conspiracy, COPPRUE faces a term of imprisonment of at least ten years and up to life in prison, a fine of $10,000,000, and at least five years of supervised release, following any term of imprisonment. For the crime of possessing a firearm as a convicted felon, COPPRUE faces up to ten years in prison, a fine of $250,000, and three years of supervised release following any term of imprisonment. For the bribery count, COPPRUE faces up to fifteen years in prison, a fine of $250,000, and three years of supervised release following any term of imprisonment.
Judge Sarah S. Vance set COPPRUE’s sentencing for December 9, 2020. Trial of the remaining defendants is currently set for October 5, 2020.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, the Drug Enforcement Administration, and the Louisiana State Police. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
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Plaquemines Parish Man Pleads Guilty to Federal Drug Trafficking ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that on August 12, 2020, DALE PHILLIPS, age 40, a resident of Plaquemines Parish, Louisiana, pled guilty to an indictment, charging him with distribution of 200 grams of cocaine.
These charges stem from an investigation by both the United States Drug Enforcement Administration and the Plaquemines Parish Sheriff’s Office into the illegal distribution of drugs in the Parish that were brought into the Parish from the Houston area. This investigation led to the Indictment of Paul Metz, Eugene Rudolph, Elbert Childs, Zyeta Rudolph, Yrian Devoure, and Dale Phillips back in May 2019 under case number 19-087 “H”.
Based on his guilty plea, PHILLIPS will face a sentence of not more than 20 years in prison, not more than $1,000,000.00 in fines, three years of supervised release, and a mandatory special assessment of $100.00. The other defendants are scheduled to stand trial on October 13, 2020. PHILLIPS is scheduled to be sentenced on October 21, 2020.
The case was investigated by the Drug Enforcement Administration (D.E.A.), the Plaquemines Parish Sheriff’s Office. Assistant United States Attorney Maurice Landrieu is in charge of the prosecution.
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Harvey Man Sentenced for Conspiracy to Commit Bank and Wire Fraud and Aggravated Identity TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that CHRISTOPHER WATSON, age 29, of Harvey was sentenced on August 11, 2020 to 57 months imprisonment before U.S. District Judge Wendy Vitter for conspiracy to commit bank fraud and wire fraud in violation of Title 18, United States Code, Sections 1343, 1344, and 371, and aggravated identity theft in violation of Title 18, United States Code, Section 1028A. The sentence imposed by Judge Vitter reflects a sentence of 33 months for the conspiracy conviction in addition to 24 months on the aggravated identity theft conviction, to run consecutively.
WATSON admitted to an elaborate fraud scheme involving use of stolen or fraudulent identities to obtain vehicle financing. WATSON, who previously worked as a used car salesman, submitted numerous fraudulent loan applications to financial institutions and automobile lenders, sometimes using the personal identifying information of his customers without their authorization and other times using stolen identities. Throughout the course of the conspiracy, WATSON used either unauthorized or counterfeit information in order to defraud financial institutions and lenders, including USAA Financial, an FDIC-insured financial institution, Westlake Financial Services, and United Auto Credit Corporation, among other victims. WATSON admitted to using the identity of a USAA member to submit a fraudulent auto loan application to USAA Financial. In some instances, WATSON utilized the dealer license numbers and names of different legitimate car dealerships and forged their names as sellers of the vehicles on the fraudulent loan applications.
Pursuant to the plea agreement, WATSON has agreed to pay restitution of $433,949.49 to the victims of his fraud scheme, consistent with the loss amount in this matter. Judge Vitter also imposed a supervised release term of two years following WATSON’s release from prison.
U.S. Attorney Peter G. Strasser praised the work of the Jefferson Parish Sheriff’s Office and the United States Secret Service Financial Crimes Taskforce in investigating this matter. Assistant United States Attorney Shirin Hakimzadeh is in charge of the prosecution.
Tangipahoa Parish Man Charged for Violating the Federal Controlled Substances Act and the Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that REDIS MCGARY, age 53, a resident of Tangipahoa Parish, was charged in a two-count Bill of Information with possessing with the intent to distribute heroin and with being a convicted felon in possession of firearms.
MCGARY, if convicted, faces a mandatory minimum sentence of (5) five years of imprisonment and a maximum of (40) forty years imprisonment , a fine of not more than $5,000,000, and a (4) four year term of supervised release following any term of imprisonment on the drug count. MCGARY faces a maximum sentence of (10) ten years imprisonment, a fine of up to $250,000, and up to (3) three years of supervised release following any term of imprisonment on the firearms charge.
U.S. Attorney Strasser reiterated that the Bill of Information is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
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 is in charge of the prosecution.
Guatemalan National Pleads Guilty and Is Sentenced to Time Served for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that ANIBAL LEONEL LOPEZ-DIAZ (“LOPEZ-DIAZ”), age 38, pled guilty today and was sentenced by Judge Carl Barbier to credit for time served on a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a) & 1326(b)(1). LOPEZ-DIAZ has been in jail since February of this year. The hearing was conducted by video conference because of the COVID-19 situation. He faces deportation once again.
According to the indictment, LOPEZ-DIAZ reentered the United States after he was previously deported on February 28, 2007. LOPEZ-DIAZ faced a maximum sentence of (10) ten years in prison, a maximum fine of $250,000, a maximum term of supervised release of (3) three years, and a mandatory $100 special assessment.
U.S. Attorney Strasser praised the work of the Immigration and Customs Enforcement in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
New Orleans Man Pleads Guilty to Conspiring to Stage Automobile Accidents in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that DAMIAN LABEAUD (“LABEAUD”), age 48, of New Orleans, entered a plea of guilty today to Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans.
According to today’s guilty plea, LABEAUD, along with his co-conspirators and others, beginning at a time unknown and continuing through the present, conspired to commit wire fraud in connection with staged accidents, including two that occurred on June 6, 2017, and June 12, 2017. Previously, on January, 30, 2020 and May 28, 2020, six of LABEAUD’s codefendants (Mario Solomon, Larry Williams, Lucinda Thomas, Mary Wade, Judy Williams, and Dashontae Young) all tendered guilty pleas and admitted to their knowing participation in a scheme to stage automobile accidents in the New Orleans area in an effort to defraud insurance and trucking companies.
Today, LABEAUD admitted to acting as the driver, or “slammer,” in both the June 6 and the June 12 staged automobile accidents alleged in the Superseding Indictment. As the “slammer,” LABEAUD intentionally caused the collisions with the 18-wheeler tractor-trailers. After the accidents, LABEAUD immediately exited the vehicles in which he had staged the accidents and fled the scene with the help of a codefendant who was acting as a “spotter,” or driver of a getaway car. LABEAUD’s codefendants received a total of $43,000.00 as a result of the fraudulent lawsuits that were filed on their behalf for the June 6 and June 12 accidents.
According to today’s guilty plea, LABEAUD staged numerous accidents for various attorneys, including at least 40 staged accidents with 18-wheeler tractor-trailers for Attorney A. Per their agreement, after each staged accident, LABEAUD would connect the passengers in the staged accidents with Attorney A so that Attorney A could represent them in conjunction with the accident. Attorney A would then pay LABEAUD $1,000.00 for every passenger that was involved in a staged accident with an 18-wheeler tractor-trailer. Attorney A would either pay LABEAUD an advance, or would pay him for the accidents soon after they were staged. Attorney A knew that LABEAUD was staging the accidents and the two would often discuss the accidents either in person or over the phone, through calls or text messages.
LABEAUD faces a maximum sentence of five (5) years. Upon release from prison, LABEAUD also faces a term of supervised release up to (3) three years, and/or a fine of $250,000 or the greater of twice the gross gain to each defendant or twice the gross loss to any person under Title 18, United States Code, Section 371. Sentencing in this matter is scheduled for November 19, 2020, at 2:00 p.m., before U.S. District Judge Eldon Fallon.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit; Assistant U.S. Attorney Shirin Hakimzadeh; Assistant U.S. Attorney Edward Rivera; and Assistant U.S. Attorney Maria Carboni.
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Mexican National Pleads Guilty and Is Sentenced for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that ELPIDIO JAIMES-LOPEZ, age 41, pled guilty and was sentenced on July 30, 2020 by U.S. District Judge Martin L.C. Feldman to credit for time served on a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a). The Mexican national had been in custody since January 15, 2020. The hearing was conducted by video conference because of the COVID-19 situation. He faces deportation once again.
According to the indictment, JAIMES-LOPEZ (“JAIMES”) reentered the United States after he was previously deported on November 28, 2019. JAIMES-LOPEZ faced a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
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Mexican National Sentenced to 18 Months for Timeshare Telemarketing ScamRead the Press Release
NEW ORLEANS –JESUS ADRIAN LEDESMA BERNAL, a/k/a JSS, age 32, a resident and citizen of Mexico, was sentenced today to 18 months in the Bureau of Prisons after pleading guilty to one count of conspiracy to commit wire fraud by U.S. District Court Judge Jane Triche Milazzo of the Eastern District of Louisiana, announced U.S. Attorney Peter G. Strasser.
As detailed in the factual basis and superseding bill of information, the defendants, from at least January 1, 2016, to the present, conspired together and with others to commit wire fraud in connection with a telemarketing scheme that targeted and victimized persons in the United States, Canada and South America. As part of the elaborate scheme, the conspirators made unsolicited phone calls to owners of resort timeshare properties to induce them into paying fees associated with the bogus sale of their property. The defendants misrepresented the existence of a buyer for their timeshare and solicited money from the victims to facilitate the sale. They solicited the timeshare owners to enter into agreements to sell their timeshares and pay for alleged “closing costs” with electronic wire transfers from banking institutions within the United States to Mexican banks. There were no interested buyers, the closings did not occur, and the timeshares were not resold. Instead, the conspirators simply pocketed the advanced fees. Of the U.S. victims, 40 were age 60 and older and the total estimated loss is at least $10,000,000.
The defendants, who are all based in Mexico, operated under the business names Planet Travel and Newport International Investments, and at other times used the following business names: Advance Travel INC, All American Real Estate, American International Investment Group, Bear Claw Travel, Best Investment Services, Champion Properties, Closing Source LLC, Equity Closing Services Group, Global Offshore Services, NSC Holding, Peach Title, Sandia Title, Travel and Acquisitions, Travel Innovations, Travel Plus Acquisitions, Travel Right, and World Travelers, Inc. All of these domain websites have been seized by the Federal Bureau of Investigation and the Department of Justice.
BERNAL, who worked as a telemarketer, was ordered to pay restitution of $127,000 USD, a fee of $100.00, and he is subject to deportation after serving 18 months.
This case is the product of an extensive and ongoing investigation by special agents of Federal Bureau of Investigation. Assistant United States Attorneys Edward J. Rivera and Paige O’Hale are prosecuting the case.
Elder fraud complaints may be filed with the Federal Trade Commission at www.ftccomplaintassistant.gov or at 1-877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime at www.ovc.gov. Additional elder justice resources, training, and outreach materials can be found at the Elder Justice Website at www.elderjustice.gov.
Man Charged with Bank RobberyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that RONALD EUGENE MOSLEY, age 46, was charged on July 31, 2020 in a one-count bill of information with bank robbery, in violation of 18 U.S.C. ' 2113(a).
According to the bill of information, on July 6, 2020, MOSLEY robbed First Bank & Trust in New Orleans and obtained $10,850.00. Mosley handed the bank teller a note demanding money. He did not have a weapon.
If convicted, MOSLEY faces a maximum term of imprisonment of twenty years, a fine of up to $250,000.00, five years supervised release after imprisonment, and a $100 special assessment.
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 in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Missouri Man Charged with ForgeryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announces that MATTHEW CUOMO, aged 55, has been charged by a Bill of Information with Forgery on July 30, 2020, in violation of Title 18, United States Code, Section 513. If convicted of this crime, CUOMO will face a maximum sentence of ten years in the Bureau of Prisons, three years of supervised release, a $250,000 fine, and a mandatory special assessment of $100.
CUOMO was the former president of a local labor union for employees of the Transportation Security Administration (TSA) working at multiple airports in Louisiana and Mississippi. An audit in 2017 revealed that union funds were missing, and an investigation allegedly revealed that CUOMO had been forging checks from the union’s bank account and using union funds for personal expenses. CUOMO forged 50 checks, resulting in a loss amount of approximately $15,000.
U. S. Attorney Strasser praised the work of the United States Department of Labor and the Transportation Security Administration for their investigation in this case. The prosecution is being handled by Assistant United States Attorney Myles Ranier.
U. S. Attorney Strasser stated that a Bill of Information is only an allegation, and that the defendant is presumed innocent until he pleads guilty or is found guilty by a jury or judge.
Alaska Doctor Sentenced for Wire FraudRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that DR. ANDREW J. VAN ATTA, age 37, from Wasilla, Alaska, was sentenced today to three years of probation for a fraudulent scheme in which VAN ATTA impersonated other doctors while submitting paid surveys.
VAN ATTA pled guilty on November 18, 2019, to the one-count indictment that charged him with committing wire fraud from January of 2017 through May of 2018. According to court documents, starting in January of 2017, when VAN ATTA was a medical student, and continuing after he graduated, VAN ATTA used multiple email accounts and PayPal accounts to impersonate numerous other physicians while filling out surveys with a survey company that paid VAN ATTA for surveys that the victim company believed were completed by various other physicians. The company paid VAN ATTA a total of over $114,000 for the surveys completed under the fake names.
Judge Susie Morgan sentenced VAN ATTA to three years of probation. Judge Morgan will hold a restitution hearing for October 27, 2020.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
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Slidell Woman Convicted of Wire Fraud and Aggravated Identity TheftRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced today that defendant RACHEL E. LIPPS (“LIPPS”), age 39, of Slidell, LA pled guilty, on July 29, 2020, to thirty-three counts of wire fraud, in violation of Title 18, United States Code, Section 1343 and a single count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, between January 2013 and October 2017, LIPPS served as a part-time bookkeeper for Business A. Business A was a Louisiana corporation domiciled in Slidell, Louisiana. LIPPS was entrusted with the daily accounting and her job functions included accessing and utilizing QuickBooks software to issue payroll checks and pay vendors on behalf of Business A. Using QuickBooks, LIPPS fraudulently printed and cashed checks made payable to herself and several of her creditors. On or about July 22, 2014, LIPPS forged the signature of Business A’s co-owner on a check despite not having the authority to do so. In all, LIPPS stole $473,978.53 from Business A and its owners.
The court set sentencing in this matter for November 10, 2020 at 1:00 p.m. If convicted of wire fraud, LIPPS faces a maximum term of imprisonment of twenty (20) years, a fine of not more than $250,000, three years of supervised release following any term of imprisonment, and a $100 special assessment fee for each count. If convicted of aggravated identity theft, LIPPS faces a mandatory consecutive sentence of two (2) years, a fine of no more than $250,000, a supervised release term of up to one (1) year following any term of imprisonment, and a $100 special assessment fee.
This matter was handled by the Federal Bureau of Investigation and the Saint Tammany Parish Sheriff’s Office. Assistant United States Attorney Duane A. Evans is prosecuting the case.
New Orleans Tax Preparer Sentenced for Fraudulent Tax ReturnsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced today, TRISH CHRISTOPHER, age 36, of Metairie was sentenced to three years of probation before U.S. District Judge Susie Morgan, for aiding and assisting in the preparation of false federal tax returns, in violation of Title 26, United States Code, Section 7206(2), a crime punishable by up to
(3) three years of imprisonment.CHRISTOPHER admitted that as owner and operator of C.C. Tax Service, located in New Orleans, Louisiana, she prepared and caused to be prepared at least 36 individual income tax returns that included false or fictitious Schedule A itemized deductions in order to falsely inflate her clients’ tax refunds.
“When Trish Christopher utilized her tax return preparation business, C.C. Tax Service, for ill-gotten gains, she underestimated the special agents of IRS Criminal Investigation,” said James E. Dorsey, Special Agent in Charge, IRS-Criminal Investigation, Atlanta Field Office. “By identifying, investigating and recommending prosecution of abusive return preparers, IRS-CI works diligently to protect the American tax system.”
Pursuant to the plea agreement, CHRISTOPHER has agreed to pay restitution of $195,205.00 to the Internal Revenue Service (IRS). In addition to probation and restitution, CHRISTOPHER has been ordered to pay a $100.00 special assessment fee.
U.S. Attorney Peter G. Strasser praised the work of the Internal Revenue Service, Criminal Investigations Division, for its work in investigating this case. The case was prosecuted by Assistant United States Attorney Shirin Hakimzadeh.
Justice Department Settles with Private School to Ensure Compliance with the ADARead the Press Release
WASHINGTON – The Justice Department today reached a settlement agreement with Ridgewood Preparatory School (Ridgewood) to ensure that students with disabilities are not discriminated against in the full and equal enjoyment of Ridgewood’s services and facilities. Ridgewood is a private, nonsectarian school in Metairie, Louisiana that provides education to children in pre-kindergarten to twelfth grade.
The settlement agreement resolves allegations that Ridgewood violated the Americans with Disabilities Act (ADA) by denying a child with spina bifida admission to its pre-kindergarten and kindergarten programs on the basis of his disability, failing to reasonably modify its policies, practices, and procedures to enable the child to access the school’s programs, and failing to ensure that its buildings and facilities are accessible to people with disabilities. The department’s investigation found that the school, among other things, had inaccessible doors, walkways, and bathrooms.
Under the agreement, Ridgewood will offer the child two years of tuition-free enrollment and, upon enrollment, provide him with reasonable modifications. Ridgewood will also modify its facilities to make them accessible to individuals with disabilities, revise its policies to ensure compliance with the ADA, train relevant staff on the ADA, and pay a $1,000 civil penalty to the United States.
“No child with a disability should be unlawfully denied admission to a school because of a disability, and no parent of a child with a disability should have to worry that his or her child will be discriminated against in this way,” said Assistant Attorney General Eric S. Dreiband of the Justice Department’s Civil Rights Division. “As we celebrate the 30th Anniversary of the ADA, the Civil Rights Division is committed to ensuring that no child with a disability is prevented from enrolling in the school of his or her choice because of discriminatory attitudes about children with disabilities and what they can achieve.”
“Thirty years after the passage of the Americans with Disabilities Act, cases like this demonstrate that there is still work to be done to ensure that children with disabilities do not face disability discrimination in education or otherwise,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “Through this agreement, Ridgewood is taking important steps to make sure that all children in its programs, including children with disabilities, will be given the opportunity to have a positive and successful educational experience free from barriers.”
2020 marks the 30th Anniversary of the Americans with Disabilities Act. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. Please visit the department’s ADA Anniversary webpage to learn more about the ADA’s history and impact.
People interested in finding out more about the ADA or these settlement agreements can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
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Justice Department Settles with Private School to Ensure Compliance with the ADARead the Press Release
The Justice Department today reached a settlement agreement with Ridgewood Preparatory School (Ridgewood) to ensure that students with disabilities are not discriminated against in the full and equal enjoyment of Ridgewood’s services and facilities. Ridgewood is a private, nonsectarian school in Metairie, Louisiana, that provides education to children in pre-kindergarten to twelfth grade.
The settlement agreement resolves allegations that Ridgewood violated the Americans with Disabilities Act (ADA) by denying a child with spina bifida admission to its pre-kindergarten and kindergarten programs on the basis of his disability, failing to reasonably modify its policies, practices, and procedures to enable the child to access the school’s programs, and failing to ensure that its buildings and facilities are accessible to people with disabilities. The department’s investigation found that the school, among other things, had inaccessible doors, walkways, and bathrooms.
Under the agreement, Ridgewood will offer the child two years of tuition-free enrollment and, upon enrollment, provide him with reasonable modifications. Ridgewood will also modify its facilities to make them accessible to individuals with disabilities, revise its policies to ensure compliance with the ADA, train relevant staff on the ADA, and pay a $1,000 civil penalty to the United States.
“No child with a disability should be unlawfully denied admission to a school because of a disability, and no parent of a child with a disability should have to worry that his or her child will be discriminated against in this way,” said Assistant Attorney General Eric S. Dreiband of the Justice Department’s Civil Rights Division. “As we celebrate the 30th Anniversary of the ADA, the Civil Rights Division is committed to ensuring that no child with a disability is prevented from enrolling in the school of his or her choice because of discriminatory attitudes about children with disabilities and what they can achieve.”
“Thirty years after the passage of the Americans with Disabilities Act, cases like this demonstrate that there is still work to be done to ensure that children with disabilities do not face disability discrimination in education or otherwise,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “Through this agreement, Ridgewood is taking important steps to make sure that all children in its programs, including children with disabilities, will be given the opportunity to have a positive and successful educational experience free from barriers.”
2020 marks the 30th Anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. Please visit the department’s ADA Anniversary webpage to learn more about the ADA’s history and impact.
People interested in finding out more about the ADA or these settlement agreements can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
Covington Woman Charged with FEMA FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that KELLY GAUTHIER, age 48, a resident of Covington, Louisiana, was charged on July 28, 2020 with theft of government funds.
According to the Bill of Information, GAUTHIER filed an application with the Department of Homeland Security Federal Emergency Management Agency (FEMA) on or about March 14, 2016, following severe storms and flooding across Louisiana. GAUTHIER claimed that she needed assistance due to her ownership and occupancy of a home where she was living. In order to show her purported ownership of the home, GAUTHIER submitted fraudulent supporting documentation. GAUTHIER was issued a total of $29,075.56 in FEMA assistance, including assistance for home repairs, rental assistance, transportation, and personal property.
GAUTHIER is charged in the Bill of Information 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 Peter G. Strasser praised the work of the Department of Homeland Security, Office of Inspector General, for its work in investigating this case. U.S. Attorney Strasser reiterated that a Bill of Information 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.
Foreign National Taken into Custody After Being Indicted in Fraudulent Ticket ScamRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JOSEPH GATT, age 75, a citizen of Canada and Malta, was arrested on July 26, 2020, in Los Angeles, California after previously being indicted by a federal grand jury sitting in the Eastern District of Louisiana with ten counts of wire fraud, in violation of 18 U.S.C. '' 1343, for conducting a lengthy scam related to the sale of sporting event tickets. Although GATT was indicted in June 2018, the indictment was unsealed only after GATT was taken into custody.
According to the indictment, between about 2009 and October 2014, GATT resided in the New Orleans area. He purported to sell tickets to spectator professional sporting events, including Union of European Associations (UEFA) Champions League and Federation Internationale De Futbol Association (FIFA) World Cup matches. Specifically, GATT falsely claimed to have connections with FIFA and, through those connections, could purchase tickets to World Cup games at or below face value before the tickets went on sale to the general public. GATT sought investors for his fraudulent business enterprise in which he claimed to be able to purchase World Cup tickets at face value and then sell them at a higher price to individuals and groups who wished to attend the games. GATT recruited individuals, including Investor A and Investor B, to enter into a fraudulent business arrangement in which they would give him money to purchase tickets and then split the resulting profits. Together, Investor A and Investor B gave GATT over $52,000. In fact, GATT used the money for personal purchases. When confronted, GATT wrote investors checks, ostensibly as repayment for the investments, when he knew that the account on which the checks were drawn had insufficient funds to cover the checks.
If convicted, GATT faces a maximum term of twenty (20) 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 an indictment 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 United States Department of Homeland Security – Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Supervisor of the Public Corruption Unit, is in charge of the prosecution.
El Salvadorian National Sentenced to Eight Months for Felony Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that MARLON TORRES-HERRERA, an El Salvadorian national, age 50, was sentenced to credit for time served on a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a) by U.S. District Judge Sarah Vance. He was originally arrested on November 14, 2019 by federal immigration authorities and had served over (8) eight months in jail prior to being sentenced today. He will be deported once again.
According to the indictment, MARLON TORRES-HERRERA (“TORRES”), a citizen of El Salvador reentered the United States after he was previously deported on May 16, 2011. TORRES faced a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. He pled guilty on June 24, 2020.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Federal Grand Jury Indicts Man for Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that JAMAL SMITH, age 31, a resident of New Orleans, Louisiana, was charged on July 24, 2020 in a six-count indictment by a Federal Grand Jury for violations of the Federal Gun Control Act and the Federal Controlled Substances Act.
SMITH is charged in Counts 1 and 4 with possession with intent to distribute a quantity of marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(D). In Counts 2 and 5, SMITH is charged with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). In Counts 3 and 6, SMITH is charged with possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
If convicted of Counts 1 and 4, SMITH faces a maximum sentence of 5 years imprisonment, a $250,000 fine, up to 2 years of supervised release, and a special assessment fee of $100. If convicted of Counts 2 and 5, SMITH faces a mandatory minimum sentence of 5 years up to life imprisonment for each count, which is to run consecutively to all other sentences, a $250,000 fine, up to 5 years of supervised release and a special assessment fee of $100. If convicted of Counts 3 and 6, SMITH faces a maximum term of imprisonment of 10 years, a $250,000 fine, up to 3 years of supervised release, and a special assessment fee of $100.
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.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: the New Orleans Police Department and the Federal Bureau of Investigation.
For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
The case was investigated by the New Orleans Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Elizabeth Privitera, Inga Petrovich and David Haller of the Violent Crime Unit of the U.S. Attorney’s Office.
New Orleans Man Federally Charged for Armed Bank RobberyRead the Press Release
NEW ORLEANS, LOUISIANA - U.S. Attorney Peter Strasser announced that a federal grand jury on July 24 returned an indictment against defendant JIMMIE POWELL age 27, of New Orleans, for armed bank robbery, in violation of Title 18, United States Code, Sections 2113(a) and 2113(d).
The indictment alleges that on June 25, 2020, JIMMIE POWELL, entered the Chase Bank at 1425 North Broad Street, New Orleans, Louisiana, brandished a firearm at an ATM teller, and took over $52,000 in cash.
If convicted, POWELL faces a maximum term of imprisonment of twenty-five (25) years, a $250,000 fine, up to three (3) years of supervised release following any term of imprisonment, and a mandatory $100 special assessment.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorney Melissa Bücher, is in charge of the prosecution.
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Man Indicted for Threatening a Government OfficialRead the Press Release
NEW ORLEANS, LOUISIANA – BRYANT LAMONT HARRIS, age 46, a resident of Monticello, Mississippi, was indicted for threatening a federal judge in violation of Title 18, United States Code, Section 115(a)(1)(B), announced U.S. Attorney Peter G. Strasser. If convicted, the defendant faces a maximum sentence of six years imprisonment, a $250,000 fine, three years of supervised release, and a $100 special assessment.
According to court records, on or about February 13, 2020, HARRIS called the chambers of a federal judge, and asked how many security officers were assigned to the court because “[he] needed to know how many people [he] need[ed] to take out to get to the Judge.” Prior to this, HARRIS had placed other calls to chambers, and claimed that he was an expertly trained military marksman, and that he “was going to take things into his own hands, watch CNN.”
United States Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser 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, Supervisor of the General Crimes Unit.
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Former State Senator Sentenced for Making False StatementRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that today WESLEY T. BISHOP, age 52, of New Orleans was sentenced to 4 (four) years of probation, before U.S. District Judge Greg Guidry, for making a false statement, a crime punishable by up to five years’ imprisonment. BISHOP admitted to knowingly and willfully making a false, material statement to the United States Department of Housing and Urban Development (“HUD”) in connection with rental property that he owned. As explained by FBI New Orleans Special Agent in Charge Bryan Vorndran, “Former State Senator Bishop made false statements on HUD paperwork which resulted in Bishop receiving a forgivable $188,000 loan under the “road home” program.”
Pursuant to the plea agreement, BISHOP has agreed to pay restitution of $188,000 to the State of Louisiana, Division of Administration, Office of Community Development, which administers the subject Small Rental Property Program on behalf of HUD. In addition to probation, BISHOP has been ordered to pay a $100.00 special assessment fee.
U.S. Attorney Strasser praised the work and tireless efforts of the HUD Office of Inspector General and the FBI in investigating, and of Assistant United States Attorney Andre J. Lagarde in prosecuting this matter.
Marrero Man, Convicted in 2006 of Child Pornography Possession, Charged Again with Receipt and Possession of Child PornographyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that BRADLEY EDWARD CORLEY, age 45, a resident of Marrero, Louisiana, was charged July 10, 2020 in a two-count Indictment with receipt and 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)(2) and 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.
Because of his prior conviction, if convicted in this matter CORLEY faces a mandatory minimum term of imprisonment of fifteen (15) years and a maximum term of imprisonment of forty (40) years under the receipt charge and 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.
U. S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Strasser 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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Houma Man Charged with Federal Firearm and Drug ChargesRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced today that a federal grand jury returned a four-count indictment on July 10, 2020 against defendant DONOVAN D. CLAY a/k/a “Donavan D. Clay,” a/k/a “Pluto,” age 27, of Houma, LA, for distribution of heroin, in violation of Title 21, United States Code, Section 841(a)(1)(C) (Counts 1-2); possession with intent to distribute heroin, in violation of Title 21, United States Code, Section 841(a)(1)(B) (Count 3); and possession of a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1) (Count 4).
If convicted for a violation of either Count 1 or 2, CLAY faces a maximum term of imprisonment of twenty (20) years and a fine of not more than $1,000,000, at least three (3) years supervised release following any term of imprisonment, and a $100 special assessment fee. For Count 3, CLAY faces a minimum of five (5) years up to maximum of forty (40) years imprisonment and a fine of not more than $5,000,000, at least four (4) years supervised release following any term of imprisonment, and a $100 special assessment fee. For Count 4, CLAY faces a maximum of ten (10) years imprisonment and a fine of not more than $250,000, up to three (3) years supervised release following any term of imprisonment, and a $100 special assessment fee.
United States Attorney Strasser reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This matter was handled by Homeland Security Investigations and the Houma Police Department. Assistant United States Attorney Duane A. Evans is prosecuting the matter.
Three First NBC Executives Indicted for Fraud against Failed $5 Billion BankRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that a grand jury indicted ASHTON J. RYAN, age 72, of Kenner; WILLIAM BURNELL, age 70, of Kenner; ROBERT BRAD CALLOWAY, age 60, of Metairie; and FRANK J. ADOLPH, age 60, of Kenner, for defrauding First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to the 46-count Indictment, from 2006 through April 2017, RYAN, BURNELL, CALLOWAY, 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. ADOLPH was a borrower at the Bank who was charged with conspiring with the three Bank executives to obtain loans based on false statements and forged documents.
The Indictment alleges that RYAN, BURNELL, CALLOWAY, 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, and 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, and St. Angelo have previously been charged in individual Bills of Information with conspiracy to commit bank fraud, and all three have pled guilty. Vira, Gibbs, and Treme have been charged more recently, in their own individual Bills of Information, with conspiring to defraud First NBC Bank. All six of these borrowers are listed in the Indictment as members of the bank fraud conspiracy with RYAN, BURNELL, CALLOWAY, and ADOLPH.
During the course of the conspiracy, RYAN, BURNELL, and CALLOWAY 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, and CALLOWAY 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, and CALLOWAY 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, and CALLOWAY 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, and CALLOWAY 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, and CALLOWAY 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. Similarly, 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.
When members of the Board or the Bank’s outside auditors or examiners asked about loans to these borrowers, RYAN, BURNELL, and CALLOWAY 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, and CALLOWAY each received millions of dollars in 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. “This should be a deterrent for others interested in participating in fraudulent schemes that affect our financial system.”
“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.
“This indictment is the product of a complex investigation involving multiple agencies over a long period,” said Laurie Younger, Special Agent in Charge, Dallas Region, Office of Inspector General for the Federal Deposit Insurance Corporation. “It sends an important message to those who would attempt to unlawfully manipulate the nation’s banking system.”
RYAN, BURNELL, CALLOWAY, and ADOLPH are each charged in Count 1 of the Indictment with conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. RYAN, BURNELL, CALLOWAY, 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, 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 46. 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, and J. Ryan McLaren are in charge of the prosecution.