Eastern District of Louisiana
Press releases recorded for this federal judicial district.
New Orleans Man Pleads Guilty to Bank Robbery ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced Friday, November 16, 2018 that JONATHAN BAHAM, age 25, of New Orleans, Louisiana, pleaded guilty as charged to conspiring to commit bank robbery with a firearm of the Whitney Bank on South Carrollton Avenue in New Orleans, Louisiana on September 27, 2017, in violation of Title 18, United States Code, Sections 371 and 2113(a) and (d).
On the morning of Wednesday, September 27, 2017, members of the New Orleans Police Department responded to a complaint of an active burglary occurring in uptown New Orleans, Louisiana. Police entered the residence, and discovered BAHAM and his two co-defendants inside of the residence. Law enforcement officers also located a loaded Harrington and Richardson “Pardner” Pump 12 gauge shotgun and a Taurus .38 caliber revolver handgun in the residence, as well as homemade ski masks.
Following a lawful arrest, BAHAM admitted to law enforcement that he had agreed to rob the Whitney Bank with his co-defendants. BAHAM agreed to serve as a lookout during the robbery, and admitted that the three perpetrators were about to leave the burglarized residence to go rob the bank with a gun when the police arrived.
Conspiracy to commit bank robbery with a firearm carries a maximum sentence of 5 years in the Bureau of Prisons, a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100. The Court will sentence BAHAM on February 21, 2019.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation’s Violent Crime Task Force and officers with the New Orleans Police Department’s Second District. Assistant U.S. Attorney Myles Ranier is handling the prosecution.
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Guatemalan Man Charged with Transfer of False Identification DocumentRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that MARIO ARGUETA-CHUN, age 40, a native of Guatemala, was charged Friday, November 16, 2018 in a one-count bill of information with unlawfully transferring a false identification document, in violation of Title 18, United States Code, Section 1028(a)(2).
According to court documents, on July 6, 2018, ARGUETA-CHUN knowingly transferred a fraudulent Social Security card that appeared to have been issued by the United States.
If convicted, ARGUETA-CHUN faces a maximum term of imprisonment of 15 years, a fine of $250,000, 3 years of supervised release, and a $100 special assessment fee.
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 Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Two Defendants Sentenced for Narcotics Conspiracy and Firearms ViolationsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced today that ANDRE STAGGERS, a/k/a “Dre,” age 44, and GREGORY LONDON, JR., a/k/a “Lil Gregg,” age 43, were sentenced Wednesday, November 14, 2018 after having been convicted after a five-day trial that was held in August 2018 before U.S. District Judge Mary Ann Vial Lemmon. STAGGERS and LONDON were two of four defendants who were convicted.
STAGGERS, a resident of LaPlace, was convicted of conspiracy to distribute one kilogram or more of heroin and five hundred grams or more of cocaine, along with firearms charges. Judge Lemmon sentenced STAGGERS to a term of life imprisonment plus five years. The additional five-year sentence was mandatory for having been convicted of possession of a firearm in furtherance of drug trafficking.
LONDON, also of LaPlace, was convicted of conspiracy to distribute 500 grams or more of cocaine and use of a communications facility in furtherance of drug trafficking. Judge Lemmon sentenced him to 120 months in prison and eight years of supervised release.
According to evidence presented at trial, agents with the Drug Enforcement Administration conducted an investigation from January 2015 through February 2016, concerning distribution of cocaine and heroin in St. Charles and St. John the Baptist Parishes. The federal investigation, which was conducted in coordination with state and local law enforcement, resulted in the seizure of nearly one kilogram of heroin along with scales, money counters, firearms, and over $480,000.00 in cash.
The sentencing of two other defendants who were convicted at trial, COREY SESSION, age 44, of St. Rose, and LEONARD MORRISON, a/k/a “Leonard London,” age 36, also of St. Rose, is scheduled for November 29, 2018, before Judge Lemmon.
U.S. Attorney Strasser praised the conviction as the result of a coordinated effort of federal and state law enforcement authorities within the Drug Enforcement Administration’s Gulf Coast High Intensity Drug Trafficking Area (HIDTA) Program. The DEA’s HIDTA Group #11, operating out of the New Orleans Field Division, includes members from DEA, U.S. Border Patrol, Louisiana State Police, St. Charles Parish Sheriff’s Office, St. John the Baptist Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, Gretna Police Department, Kenner Police Department, and St. Bernard Parish Sheriff’s Office. U.S. Attorney Strasser extended his thanks to the Oklahoma Highway Patrol for their assistance in this investigation. Assistant United States Attorneys Matthew R. Payne, Brittany L. Reed, and David Howard Sinkman handled the prosecution and trial. Also assisting in the prosecution was Special Assistant United States Attorney Andre Gaudin, who is assigned from the Orleans Parish District Attorney’s Office to the DEA HIDTA Group.
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Texas Man Sentenced for Heroin and Firearms Offenses and Firearms ViolationsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced Wednesday, November 14, 2018 that United States District Judge Martin L.C. Feldman sentenced KALIQUE HARDIN, age 21, of Dallas, Texas, to a sixty-month and one-day term of imprisonment.
HARDIN pleaded guilty to three counts of an indictment charging him with, respectively, conspiracy to distribute heroin; possession of heroin with intent to distribute; and possession of a firearm in furtherance of drug trafficking. HARDIN was arrested by Louisiana State Police troopers on February 8, 2016, Lundi Gras, in a vehicle parked in a lot in the 1000 block of Bienville Street, along with Lilbear George, Sidney LeBanks, and Basin Wells. HARDIN was sitting on a Ruger 9mm pistol with an extended magazine containing 24 live rounds. Troopers also discovered other guns, heroin, and about $11,000 in cash in the car. George and LeBanks are awaiting trial in this case, presently scheduled for February 2019.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the Louisiana State Police in investigating this matter. Assistant United States Attorney Michael E. McMahon was in charge of the prosecution.
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New Orleans Man Sentenced in Heroin-Trafficking ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced yesterday that ANTWINE SMITH, age 42, of New Orleans, was sentenced today after pleading guilty to one count of conspiring to traffic one kilogram or more of heroin in the Eastern District of Louisiana. United States District Judge Carl J. Barbier sentenced SMITH to 78 months imprisonment and 5 years supervised release.
On July 25, 2014, SMITH was one of 12 defendants charged in a 23-count indictment. According to court documents, this investigation targeted a heroin trafficking organization operating in New Orleans East. This organization was responsible for distributing at least 15 kilograms of heroin in New Orleans. Agents seized approximately $1,200,000 in assets (a combination of vehicles, currency, jewelry and real property) from members of this drug trafficking organization that were acquired with proceeds derived from the sale of heroin.
SMITH was the last of the twelve defendants to plead guilty and receive his sentence. Co-defendants include:
LARRY HARDY pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and was sentenced to 90 months incarceration.
AMBROSE WILLIAMS pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and was sentenced to 120 months incarceration.
ANTOINETTE KELLY pled guilty to distribution of heroin and was sentenced to 15 months incarceration.
CHRISTOPHER FRANCIS pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and was sentenced to 240 months incarceration.
RODNEY MACK pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and was sentenced to 120 months incarceration.
THOMAS HARRISON pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and was sentenced to 144 months incarceration.
VINCENT P. JONES pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and was sentenced to 180 months incarceration.
BETH MARIE NGUYEN pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and was sentenced to 36 months incarceration.
RICKY MARQUETTE BOZEMAN pled guilty to conspiracy to possess with intent to distribute 100 grams or more of heroin and was sentenced to 144 months incarceration.
MICHAEL SORINA pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and was sentenced to 120 months incarceration.
TERRELL CARNEY pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and was sentenced to 180 months.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration, Kenner Police Department, and Border Patrol in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.
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New Orleans Man Charged in Federal Court for Bank RobberyRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced yesterday that a federal grand jury returned an indictment against defendant TROYNELL COOKS, age 39, of New Orleans, for bank robbery, in violation of Title 18, United States Code, Section 2113(a).
The federal indictment alleges that TROYNELL COOKS entered the Hancock Bank at 2421 St. Claude Avenue, New Orleans, Louisiana, and demanded money.
If convicted of the violation, TROYNELL COOKS faces a maximum term of imprisonment of twenty (20) years, a $250,000 fine, up to three (3) years supervised release following any term of imprisonment, and a $100 special assessment fee.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This matter was handled by the Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney Duane A. Evans is prosecuting the case.
Mexican National Pleads Guilty to Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced today that JOSE LUIS MEZA-LOPEZ, age 52, a native of Mexico, pleaded guilty on November 14, 2018 to a one-count bill of information charging him with illegal entry of a removed alien.
According to the court documents, MEZA-LOPEZ was found in the United States on or about May 30, 2018, after having been previously removed on July 20, 2012.
MESA-LOPEZ faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee. U.S. District Judge Sarah S. Vance set sentencing for March 13, 2019.
U.S. Attorney Strasser praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney G. Dall Kammer is in charge of the prosecution.
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Mexican Man Charged with Illegal Use of a Social Security Number and Submitting False Information in an Attempt to Secure a U.S. PassportRead the Press Release
NEW ORLEANS – FRANCISCO JAVIER NUNEZ-ALEMAN, age 32, a citizen of Mexico was charged in a two-count indictment for illegal use of a Social Security number in violation of Title 42, United States Code, Section 408(a)(7)(B). He was further charged with using a false social security number in attempting to secure a U.S. Passport, a violation of Title 18, United States Code, Section 1542.
NUNEZ-ALEMAN faces a maximum term of imprisonment of not more than five (5) years, a fine of $250,000.00, and a mandatory special assessment of $100.00 on both counts. Additionally, NUNEZ-ALEMAN is subject to a period of supervised release after imprisonment of up to three years.
The indictment further alleged that NUNEZ-ALEMAN applied for a U.S. Passport at the Bourg, La. Post Office. The State Department determined that the Social Security number he used belonged to another individual. NUNEZ-ALEMAN further used the fraudulently obtained social security number in applying for a job at a Houma, La employer.
U.S. Attorney Peter G. Strasser pointed out that an indictment is merely allegation. Each element of the offense must be proven beyond a reasonable doubt.
U.S. Attorney Peter G. Strasser praised the work of the United States Department of Homeland Security and the U.S. State Department Diplomatic Security Service in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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Medical Doctor Sentenced for Illegally Dispensing Schedule II and Schedule III Controlled SubstancesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announces that DR. BARBARA A. BRUCE, M.D., age 45, was sentenced yesterday for her plea of guilty to a one count bill of information charging her with conspiring with others to dispense quantities of Schedule II and Schedule III drug controlled substances outside the scope of professional practice and not for legitimate medical purposes.
DR. BRUCE admitted in a factual basis that she operated the medical office of Barbara A. Bruce, M.D. at 9954 Lake Forest Blvd., Suite 10, in New Orleans, Louisiana, between August 2014 and April 2015. She acknowledged that during her medical practice she wrote prescriptions that were provided to patients without her conducting a medical examination of the patient, and at times, without even seeing the patient. DR. BRUCE admitted that she conspired with a member of her medical staff and with Kenneth Knight who split 50 percent of the profits received by DR. BRUCE through her medical practice. The owner of the medical clinic previously entered a plea of guilty to the same conspiracy and is pending sentencing.
DR. BRUCE was sentenced to 30 months incarceration. The Honorable Barry W. Ashe sentenced the defendant.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration New Orleans Office and the Internal Revenue Service, Gulfport, Mississippi for investigating this matter. Assistant U.S. Attorney John F. Murphy is in charge of the prosecution.
Houma Man Pleads Guilty to Possessing Child PornographyRead the Press Release
NEW ORLEANS – NICHOLAS GARCIA (“GARCIA”), age 33, of Houma, Louisiana, pleaded guilty yesterday to possession of child pornography, announced United States Attorney Peter G. Strasser.
According to documents filed in federal court, special agents with the Louisiana Bureau of Investigation (“LBI”) obtained a search warrant for GARCIA’s residence in Houma, Louisiana. Law enforcement officers and agents with LBI, the Terrebonne Parish Sheriff’s Office, and the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”) executed the search warrant. On February 21, 2018, law enforcement officers arrested GARCIA after finding that GARCIA was in possession of a Samsung Galaxy tablet that contained images and videos of child pornography. A subsequent computer forensic examination by HSI revealed over 350 images and 3 videos depicting the sexual victimization of pre-pubescent children on GARCIA’s Samsung device.
Sentencing will be held on February 21, 2019, before U.S. District Judge Barry W. Ashe. The maximum penalty GARCIA may receive is not more than twenty (20) years imprisonment and a supervised release term of up to life.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Strasser praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations, the Louisiana Bureau of Investigation, and Terrebonne Parish Sheriff’s Office in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Financial Crimes Unit Supervisor, Assistant U.S. Attorney Brian M. Klebba.
New Orleans Resident Sentenced to 78 Months Imprisonment after Previously Pleading Guilty to Possessing Child PornographyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced yesterday that DAMIAN BARBARITO ROMERO, age 38, from New Orleans, Louisiana, was sentenced to 78 months imprisonment by United States District Judge Sarah S. Vance after previously pleading guilty to a one-count Indictment charging him with possession of child pornography involving children under the age of twelve, in violation of Title 18, United States Code, Section 2252(a)(4)(B). ROMERO was also sentenced to a period of 5 years of supervised release after his term of imprisonment. Judge Vance also ordered ROMERO to pay restitution in the amount of $7,000.00.
According to court documents, special agents with the Federal Bureau of Investigation executed a search warrant at ROMERO’S residence in February 2017. During the execution of the warrant, agents seized dozens of electronic devices, including laptop computers, “thumb” drives, external storage devices, and DVDs, that contained images and videos depicting the sexual victimization of children. A subsequent forensic review revealed that ROMERO had downloaded and saved approximately 3,984 unique images and 1,258 videos depicting the sexual victimization of children, including children as young as two (2) years old being forced to engage in violent sexually explicit conduct. The forensic review also determined that ROMERO attempted unsuccessfully to encrypt and hide his collection by using a sophisticated twenty-two character password.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
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Honduran National Sentenced with Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced yesterday that GERMAN ALFREDO MOLINA-LARA age 35, a citizen of Honduras, was sentenced after previously pleading guilty to a one-count Bill of Information for illegally re-entering the United States in violation of Title 8, United States Code, Section 1326(a).
According to the Bill of Information, MOLINA-LARA was found in the United States on or about August 26, 2018, after having been previously removed therefrom on or about June 12, 2008.
MOLINA-LARA was sentenced to time served and a $100.00 special assessment. Additionally, MOLINA-LARA was turned over to Immigration and Customs Enforcement for deportation.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced yesterday that GERMAN ALFREDO MOLINA-LARA, age 35, a citizen of Honduras, pleaded guilty to a one-count Bill of Information alleging illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
According to the Bill of Information, MOLINA-LARA reentered the United States on or about August 26, 2018, after having been previously removed therefrom on or about June 12, 2008.
MOLINA-LARA faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year of supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Jane Triche Milazzo set sentencing for November 14, 2018.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Former Manager of North Kenner Post Office Charged with Misappropriation of Postal FundsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced yesterday that RYAN S. CORTEZ, former Supervisor and Manager of Customer Service Operations at the North Kenner Post Office located at 390 West Esplanade Avenue, was charged in a Bill of Information for Misappropriation of Postal Funds. CORTEZ, age 46, of Des Allemands, Louisiana, was arrested in October 2018 by special agents with the United States Postal Service, Office of Inspector General (“Postal OIG”).
According to court records, Postal OIG agents were notified by PayPal and eBay regarding significant quantities of U.S. Postal stamps being sold by CORTEZ on eBay. A subsequent investigation by Postal OIG revealed that, as manager, Cortez had increased the North Kenner Post Office’s reserve stamp stock by more than $600,000. Subpoenaed records from Cortez’s Regions Bank account revealed substantial deposits, including more than $58,000 in a one-month period in the summer of 2018.
During their investigation, Postal OIG agents determined CORTEZ withdrew thousands of dollars on a regular basis at the Harrah’s Casino in New Orleans. Harrah’s records revealed CORTEZ lost over $667,000 since 2011 and lost over $220,000 in 2017. Postal records indicate CORTEZ earned an annual salary of $70,818.
On October 10, 2018, Postal OIG special agents executed a federal search warrant issued by a federal magistrate judge at CORTEZ’s residence in Des Allemands.
In total, Postal records reveal that CORTEZ stole over $630,000 in U.S. stamps and sold them on eBay. According to Postal authorities, CORTEZ’s illegal activities constitute one of the largest internal Postal thefts by a Postal Service employee in the history of the U.S. Postal Service.
U. S. Attorney Strasser reiterated that a Bill of Information is merely a charge and that the guilt of a defendant must be proven beyond a reasonable doubt.
If convicted, CORTEZ faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, and a $250,000.00 fine.
This case was investigated by special agents from the U.S. Postal Service, Office of Inspector General (“USPS-OIG”). The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
Eastside Hollygrove Drug Traffickers Plead GuiltyRead the Press Release
NEW ORLEANS – The U.S. Attorney’s Office, EDLA announced yesterday that DONALD MARCELIN, a/k/a “Snook,” a/k/a “Black,” a/k/a “Golfer,” age 41, and LANCE STOVALL, a/k/a “Lele,” a/k/a “Allen,” age 28, both of New Orleans, pleaded guilty today to conspiring to distribute and to possess with intent to distribute heroin and fentanyl.
On MARCELIN’s drug conspiracy count, MARCELIN is facing a mandatory minimum sentence of 10 years’ imprisonment, a maximum sentence of life, a possible fine of up to $10,000,000, and at least five years of supervised release upon his release from prison. On STOVALL’s drug conspiracy count, STOVALL is facing a mandatory minimum sentence of 5 years’ imprisonment, a maximum of 40 years’ imprisonment, a possible fine of up to $5,000,000, and at least four years of supervised release upon his release from prison.
U.S. District Judge Sarah S. Vance will sentence MARCELIN and STOVALL on March 13, 2019.
The U.S. Attorney’s Office praised the work of the FBI New Orleans Gang Task Force (NOGFT), which led this investigation and was assisted by the Drug Enforcement Administration, New Orleans Police Department, St. Tammany Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, and the Orleans Parish District Attorney’s Office. Assistant United States Attorneys Brandon S. Long, David Haller, and Edward Rivera are in charge of the prosecution.
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Metairie Man Sentenced for Manufacturing and Selling Explosive Devices and Possessing Anabolic Steroids in Federal CaseRead the Press Release
U.S. Attorney Peter G. Strasser announced on Thursday, November 8, 2018, that BRAD MILLIGAN, age 39, of Metairie, has been sentenced to credit for time served and 2 years supervised release by the Honorable Nannette Jolivette Brown for manufacturing and distributing explosive materials without a license and possessing anabolic steroids with the intent to distribute. MILLIGAN did not possess a license to distribute either the explosives or anabolic steroids.
According to court documents, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating the shipment of explosive precursor chemicals which are used to manufacture explosive devices, such as M-type explosive devices. ATF agents learned that MILLIGAN was purchasing large quantities of the precursor materials, all of which were ordered over the internet and delivered to his Metairie residence. A Crimestoppers tipster anonymously provided information to the Jefferson Parish Sheriff’s Office (JPSO) which stated that MILLIGAN was selling explosive devices and anabolic steroids from his residence. Members of the JPSO and the ATF began a joint investigation into the information provided.
U.S. Attorney Peter G. Strasser praised the work of Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brittany L. Reed was in charge of the prosecution.
New Orleans Man Charged in Federal Court for Hobbs Act Robberies and Possession of a Firearm during a Crime of ViolenceRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced yesterday that JAMES RAIFORD, age 25, of New Orleans, was charged in a ten-count Indictment with Hobbs Act Robberies, an Attempted Hobbs Act Robbery, and Possession of a Firearm During a Crime of Violence in violation of Title 18, United States Code, Sections 1951(a) and 924(c)(1)(a)(i).
The federal indictment alleges that JAMES RAIFORD committed armed robberies of four businesses located in the New Orleans East and St. Claude areas while brandishing a firearm.
If convicted of the violations, JAMES RAIFORD 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 of $100.00.
U. S. Attorney Peter G. 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 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. Former Attorney General Jeff Sessions made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Peter G. Strasser praised the work of the New Orleans Police Department and the Bureau of Alcohol, Tobacco, and Firearms in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
Man Pleads Guilty to Possession of Stolen FirearmsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced yesterday that STEVEN RE, age 42, of Florida, pleaded guilty to Counts 1 and 2 of the Indictment, which charged him with possession of stolen firearms, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2).
According to court documents, RE sold stolen firearms to pawn shops on September 8, 2017 and September 15, 2017. RE confessed that he stole the firearms in residential burglaries and brought them to pawn shops to obtain money to buy drugs.
RE faces a maximum of ten years of imprisonment and/or a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person. RE may be placed on supervised release for a period of up to three years and fined a mandatory special assessment fee of $100.00 per count. U.S. District Court Judge Jay C. Zainey set sentencing for February 5, 2019.
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. Former Attorney General Jeff Sessions made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, then Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN was launched in 2001.
U.S. Attorney Peter G. Strasser praised the work of the Bureau of Alcohol, Tobacco, and Firearms, St. Bernard Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, and the Hammond Police Department, in investigating this matter. Assistant United States Attorneys Maria M. Carboni and Ryan McLaren are in charge of the prosecution.
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Atlanta-Area Brother and Sister Plead Guilty to Offenses Arising from Narcotics TraffickingRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that TAGGET WILLIAMS, age 44, of Atlanta, Georgia, and SONYA WILLIAMS, age 44, of Norcross, Georgia, pled guilty today to offenses arising from narcotics trafficking.
According to court documents, TAGGET traveled to New Orleans seeking to purchase five kilograms of cocaine from a confidential informant. His sister SONYA was to drive the shipment from New Orleans to Atlanta, from where TAGGET would resell it.
TAGGET pled guilty to conspiring to distribute and to possess with the intent to distribute five kilograms or more of cocaine, for which he faces a term of imprisonment of at least ten years and up to life, a fine of up to $10,000,000, and at least five years of supervised release following any term of imprisonment. SONYA pled guilty to concealing the felony, for which she faces up to three years in prison, a fine of $250,000, and up to one year of supervised release following any term of imprisonment.
Judge Barbier set sentencing for February 7, 2019.
United States Attorney Strasser praised the work of U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Assistant U.S. Attorney Jeffrey Sandman is in charge of the prosecution
New Orleans Man Sentenced for Murder and CarjackingRead the Press Release
U.S. Attorney Peter Strasser announced that MICHAEL BROWN, age 24, of New Orleans, Louisiana, was sentenced today for murder through use of a firearm and carjacking.
BROWN pled guilty on February 22, 2017 to participating in the murder of Jacquez Young on June 1, 2015, and to participating in a carjacking on June 2, 2015.
Judge Eldon E. Fallon sentenced BROWN to 340 months in prison, as well as 5 years of supervised release following the term of imprisonment.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jefferson Parish Sheriff’s Office, the Baton Rouge Police Department, the Zachary Police Department, and the Wilkinson County, Mississippi, Sheriff’s Office in investigating this matter. Assistant U.S. Attorney Jonathan L. Shih and Trial Attorney Joseph K. Wheatley, of the Organized Crime and Gang Section of the Department of Justice, are in charge of the prosecution.
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 safer for everyone. Former Attorney General Jeff Sessions made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
New Orleans Man Pleads Guilty to Narcotics ChargesRead the Press Release
U.S. Attorney Peter G. Strasser announced that MARVIN ARMSTRONG, age 32, of New Orleans, LA, has pleaded guilty to two counts of heroin related charges.
According to court documents, ARMSTRONG conspired with others to distribute a quantity of a mixture or substance containing a detectable amount of heroin, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C) and 846, and to distribution of a quantity of a mixture or substance containing a detectable amount of heroin, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), and Title 18, United States Code, Section 2.
The Court set sentencing in this matter for February 7, 2019. As to each count, ARMSTRONG faces a term of imprisonment of up to 20 years, a fine of up to $1 million, and at least three years of supervised release following any term of imprisonment.
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 safer for everyone. Former Attorney General Jeff Sessions made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U. S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the New Orleans Police Department, and the Louisiana State Police in investigating this matter. The case is being prosecuted by Assistant United States Attorneys Maria M. Carboni and Matthew R. Payne.
Houma Man Sentenced in Methamphetamine-Trafficking ConspiracyRead the Press Release
U.S. Attorney Peter G. Strasser announced that JACOB HIGGINBOTHAM, age 24, of Houma, was sentenced today after pleading guilty to one count of conspiring to traffic 500 grams or more of a mixture containing methamphetamine in the Eastern District of Louisiana. United States District Judge Susie Morgan sentenced HIGGINBOTHAM to 10 years’ incarceration and 5 years’ supervised release.
HIGGINBOTHAM is one of the eleven defendants charged in a 23-count federal indictment. Specifically, the indictment alleges that HIGGINBOTHAM conspired to sell large quantities of methamphetamine with codefendants Stefen Daigle, Peter Giandalone, Julien Polk, Paul Melancon, Jeffrey Clines, James Hatch, Angel Renee Vidaure, Eulalio Torres-Cadenas, Delio Alfredo Lopez-Lopez, and Lindsey Lopez. The indictment also alleges a number of individual acts of distributing and possessing with intent to distribute methamphetamine, as well as firearm offenses for codefendants Hatch, Vidaure, and Lopez-Lopez. Law enforcement developed evidence against this group of defendants using controlled purchases of methamphetamine, traffic stops and seizures, consensually recorded text messages and phone calls, search warrants, cooperator information, and self-incriminating statements.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, Louisiana State Police, Jefferson Parish Sheriff’s Office, Texas Department of Public Safety, Texas Highway Patrol, Montgomery County (Texas) Sheriff’s Office, Immigration and Customs Enforcement, AMTRAK Police, and the Orleans Parish District Attorney’s Office. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Honduran Man Sentenced for Immigration OffenseRead the Press Release
United States Attorney Peter G. Strasser announced that CELIO JAVIER JUAREZ-AGUILAR, age 25, a native of Honduras, was sentenced today after previously pleading guilty to a one-count indictment for illegal reentry of a removed alien.
United States District Court Judge Eldon E. Fallon sentenced JUAREZ-AGUILAR to 3 months of imprisonment, followed by one year of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of Immigration and Customs Enforcement for removal proceedings.
According to court documents, on July 15, 2018, JUAREZ-AGUILAR was found in the United States after having been previously deported from the United States on February 25, 2014.
U.S. Attorney Strasser praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Florida Man Sentenced for Cocaine ConspiracyRead the Press Release
U.S. Attorney Peter Strasser announced that MIGUEL GAMEZ, age 32, of Fort Meyers, Florida, was sentenced today for conspiracy to distribute 5 kilograms or more of cocaine hydrochloride and for obstruction of justice.
GAMEZ pled guilty on June 21, 2017, to conspiring with others to distribute more than 5 kilograms of cocaine hydrochloride, and to obstructing justice by attempting to destroy a cellular telephone.
Chief Judge Nannette Jolivette Brown sentenced GAMEZ to 70 months in prison, as well as 3 years of supervised release following the term of imprisonment.
U.S. Attorney Strasser praised the work of the Department of Homeland Security, Homeland Security Investigations in investigating the matter. Assistant U.S. Attorney Jonathan L. Shih is in charge of the prosecution.
Houma Man Sentenced in Conspiracy to Traffic MethamphetamineRead the Press Release
U.S. Attorney Peter G. Strasser announced that DAMIEN JACKSON, age 37, of Houma, LA, was sentenced today after having pled guilty to conspiracy to distribute and to possess with intent to distribute 50 grams or more of a mixture containing methamphetamine.
United States District Judge Martin L.C. Feldman sentenced JACKSON to 125 months’ imprisonment and a supervised release period of 4 years.
According to court documents, on July 5, 2016, law enforcement arrested JACKSON shortly after JACKSON took possession of a U.S. mail parcel containing approximately 455 grams of methamphetamine. JACKSON admitted that he intended to sell a portion of the methamphetamine to his codefendant, James Siglar. For his part, Siglar was later arrested, pled guilty, and was sentenced to 37 months’ incarceration.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, the Houma Police Department, and the Terrebonne Parish Sheriff’s Office. Assistant U.S. Attorneys James S.C. Baehr and Brandon S. Long are in charge of the prosecution.
Thibodeaux Woman Charged Stealing More Than Half a Million Dollars from Metairie ArchitectRead the Press Release
U.S. Attorney Peter G. Strasser announced the indictment of CHRISTELLE SCHMIDT on Friday, November 2, 2018, age 65 of Thibodeaux, Louisiana for one count of violating Title 18, United States Code, Section 2113(b), Bank larceny. The indictment alleged that SCHMIDT stole more than $550,000 from a local architectural firm while employed therein as a bookkeeper.
The indictment alleged that starting in 2007 and continuing through 2017, through a series of fraudulent activities, SCHMIDT committed the offense. The indictment further alleged that she utilized three different schemes to purloin the funds, which were in the care, custody and control of federally insured banks.
The first scheme involved her forgery of more than 600 checks and then disguising those thefts by falsely disguising the checks in the computer accounting records of the firm as funds spent for legitimate vendors. In fact, the money was used for SCHMIDT’S personal expenses. The indictment further alleged that her second scheme involved charging personal expenses on company credit cards. The third scheme involved SCHMIDT’S payment of the credit cards using the automated clearing house (ACH) accounts of the firm.
If convicted, SCHMIDT faces up to 10 years incarceration, a $250,000 fine and restitution and 3 years supervised release. U.S. Attorney Strasser emphasized that an indictment is merely a charge and that to prevail at trial, the government must prove each and every offense alleged beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Secret Service in investigating the matter. The case is being prosecuted by Assistant United States Attorney Carter K.D. Guice Jr.
November 6, 2018, ElectionsRead the Press Release
United States Attorney Peter G. Strasser announced today that Assistant United States Attorney (AUSA) Irene Gonzalez will lead the efforts of the United States Attorney’s Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election. AUSA Gonzalez has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Louisiana, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Strasser said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Strasser stated that AUSA/DEO Gonzalez will be on duty in this District while the polls are open. She can be reached by the public at the following telephone numbers: 504-680-3077.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 504-816-3000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Strasser said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Hungarian Nationals Charged with Aggravated Identity TheftRead the Press Release
U.S. Attorney Peter G. Strasser announced the filing of a bill of information on Wednesday, October 31, 2018 charging two Hungarian nationals with aggravated identity theft.
The bill of information charges DANIEL TANASE, age 39, and GABRIELLA TEKSE, age 31, with one count each of aggravated identity theft. Should they be convicted, they each face a mandatory term of imprisonment of two years, a maximum $250,000.00 fine, and up to one year of supervised release.
According to court documents, the defendants were arrested after an investigation initiated by the Jefferson Parish Sheriff’s Office based on reports that two individuals were attempting to use stolen debit card information to withdraw money at ATMs in Orleans and Jefferson Parishes. Members of the Louisiana Financial Crimes Task Force arrested the defendants on June 19, 2018, at an Airbnb in Jefferson Parish where they were found with $32,612.00 in cash and approximately 81 gift cards that had been encoded with stolen bank account information.
U.S. Attorney Strasser reiterated that the bill of information is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Strasser also praised the agencies that contributed to this bill of information. This prosecution represents a coordinated effort of federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, the U.S. Postal Inspection Service, the Louisiana Attorney General’s Office, the Jefferson Parish Sheriff’s Department, and the New Orleans Police Department. Additionally, U.S. Attorney Strasser thanked the Jefferson Parish District Attorney’s Office for their assistance. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
Hammond Man Indicted for Theft of More Than $240,000.00 in Social Security FundsRead the Press Release
United States Attorney Peter G. Strasser announced that DANNY L. LETARD (“LETARD”), age 57, of Hammond, Louisiana, was indicted Friday, November 2, 2018 by a federal grand jury for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to the indictment, beginning in 1989, LETARD filed for and later became eligible for Social Security Administration disability benefits of approximately $2,177.30 per month. During this period, LETARD formed a number of businesses including, but not limited to, Excavation/Dozer Company, Virginia Shop Site Cleaning Services, Virginia’s Job Site Cleaning, Virginia Cleaning Services, and R & D Dozer Excavation & Pipe Fabr. LETARD’s businesses were registered in the names of LETARD’s family members rather than in his name to conceal his employment. LETARD’s businesses performed demolition work and the cleaning of job sites according to occupational license applications filed with Tangipahoa Parish. LETARD also operated heavy construction equipment as part of his businesses. Accordingly, LETARD fraudulently received approximately $242,000.00 in Social Security Administration disability benefits he was not entitled to due to his employment.
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.
If convicted, LETARD faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment.
U.S. Attorney Strasser praised the work of the Social Security Administration, Office of Inspector General. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
Reserve Man Sentenced to 4 Years in Prison for Cocaine ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that GARRICK JONES, age 39, of Reserve, was sentenced yesterday for charges relating to narcotics trafficking, retaliation against a witness, and firearm possession.
JONES pled guilty on October 12, 2017, to conspiring with others to distribute at least 28 grams of cocaine base (“crack”), and to retaliating against a witness for information provided to law enforcement relating to the commission of a federal offense. JONES, who was previously convicted of a felony, also pled guilty to illegal possession of a firearm by a felon. JONES possessed a Smith and Wesson .38 caliber pistol.
Judge Jane Triche Milazzo sentenced JONES to 48 months in the Bureau of Prisons, as well as 4 years of supervised release following the term of imprisonment.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office. Assistant U.S. Attorneys Nicholas D. Moses and Edward Rivera are in charge of the prosecution.
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Man Pleads Guilty to Robbery of Metairie BankRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced yesterday that STEPHEN J. SCOTT, age 31, of New Orleans, Louisiana, pleaded guilty as charged to committing the robbery of the First American Bank & Trust at 1800 Veterans Memorial Boulevard in Metairie, Louisiana, on April 9, 2018, in violation of Title 18, United States Code, Section 2113(a).
Bank robbery carries a maximum sentence of 20 years in the Bureau of Prisons, a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100. The Court will sentence SCOTT on January 31, 2019.
On that date, SCOTT entered the bank, passed a demand note to the teller, and implied that he was in a possession of a weapon. The teller handed over $3,400 to SCOTT, who fled the location. Members of the Jefferson Parish Sheriff’s Office were able to match a fingerprint taken from the bank to SCOTT. Sheriff’s Office members then compared the surveillance footage from the robbery to other known photos of SCOTT to confirm his identity.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation’s Violent Crime Task Force and officers with the Jefferson Parish Sheriff’s Office. Assistant U.S. Attorney Myles Ranier is handling the prosecution.
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New Orleans Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
U.S. Attorney Peter G. Strasser announced that ELTON WILLIAMS, age 28, of New Orleans, pleaded guilty today before United States District Judge Nannette Jolivette Brown, to conspiracy to possess with the intent to distribute heroin, cocaine hydrochloride, marijuana, and Tramadol.
According to court documents, ELTON WILLIAMS, an inmate at the Orleans Justice Center jail, solicited the assistance of his relative, Ciboney Parker (a civilian employee of the Orleans Parish Sheriff’s Office), and two friends, Brittany Theophile and Rachelle Kelson, to smuggle drugs into the jail. Theophile and Kelson provided the drugs, including marijuana, heroin, and Tramadol, to Parker during her work shift. The Orleans Parish Sheriff’s Office Intelligence Division became aware of the plan through audio and visual surveillance and detained Parker before she could gain access to WILLIAMS. Theophile and Kelson pleaded guilty and await sentencing. Parker is scheduled to plead guilty on December 4, 2018.
WILLIAMS faces a maximum term of imprisonment of twenty (20) years, is subject to a fine of up to $1,000,000, and, upon release, will serve a three (3) year term of supervised release. Sentencing before Judge Brown is scheduled for February 7, 2019.
U.S. Attorney Peter Strasser praised the work of the FBI and the Orleans Parish Sheriff’s Office Investigative Service Bureau. Assistant United States Attorney Tracey Knight is in charge of this prosecution.
Former Investigator with District Attorney’s Office for the 22nd Judicial District Pleads Guilty to Making False Statements to Federal AuthoritiesRead the Press Release
U.S. Attorney Peter G. Strasser announced that JEFFERY B. MONTALBANO, age 58, a resident of Mandeville, Louisiana, pleaded guilty before United States District Judge Susie Morgan to a one-count bill of information with making false statements to federal authorities, in violation of 18 U.S.C. ' 1001(a)(2).
According to court documents, MONTALBANO was the president of an entity called “JBM OIL SALES” and from about February 2013 to April 2018 worked for the Office of the District Attorney for the 22nd Judicial District as an investigator in the domestic violence unit. While employed as an investigator, MONTALBANO was responsible for collecting and preparing evidence in domestic violence investigations and trials and coordinating witness and victim testimony.
On January 23, 2018, MONTALBANO met with a special agent with the Federal Bureau of Investigation at 3601 Highway 190, Mandeville, Louisiana, within the Eastern District of Louisiana. This meeting was part of an investigation the FBI was conducting into approximately $20,000 paid by a defendant in a criminal matter pending in the 22nd Judicial District (“Defendant A”) to MONTALBANO’S associate (“Person 1”). The investigation concerned the nature of the payment and whether MONTALBANO took official action to benefit Defendant A in an ongoing criminal matter in exchange for receiving the payment.
During the interview, MONTALBANO made numerous materially false statements and omissions related to the investigation in response to questions posed to him by FBI Special Agents. In particular, MONTALBANO said that neither he nor Person 1 had ever received money from Defendant A. He also said that he had no idea federal agents visited the Office of the District Attorney for the 22nd Judicial District to investigate the allegations that MONTALBANO had received money from Defendant A in exchange for using his influence to benefit Defendant A. In truth, however, MONTALBANO knew that Defendant A gave Person 1 two checks in the amount of $10,000 each on November 22, 2013 and December 30, 2013, that Person 1 gave MONTALBANO checks for half the money he received from Defendant A on November 26, 2013, and December 30, 2013, and that FBI Special Agents had interviewed MONTALBANO’s colleagues on October 8, 2015. The false statements impeded FBI Special Agents from determining whether (1) payments from Defendant A were in exchange for beneficial action for Defendant A and whether (2) MONTALBANO communicated truthfully with his supervisors.
“Former St. Tammany Parish DA Investigator Jeff Montalbano lied multiple times to FBI Agents who were seeking to learn why he accepted $10,000, through an intermediary, from a criminal defendant who was facing sentencing in a case brought by Mr. Montalbano's own office. Mr. Montalbano's conviction sends a clear message that the FBI and the US Attorney's Office will not permit criminal investigations to be impeded by false statements, especially by those we entrust to uphold and enforce the law,” said FBI Special Agent in Charge Eric J. Rommal.
MONTALBANO faces a maximum term of imprisonment of five years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment. Sentencing before Judge Morgan was scheduled for February 6, 2019.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Louisiana Man Pleads Guilty to Attempted Bank RobberyRead the Press Release
U.S. Attorney Peter G. Strasser announced that MICHAEL COLLIER, age 56, of New Orleans, pleaded guilty before United States District Judge Jay C. Zainey.
According to the indictment filed in this case, on April 25, 2018, COLLIER attempted to rob the Capital One Bank located at 2700 South Claiborne Avenue, New Orleans, LA.
COLLIER faces a sentence of up to twenty years in prison, a fine of up to $250,000, and up to three years supervised release. He is scheduled to be sentenced on January 29, 2019.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Gregory Kennedy is in charge of the prosecution.
Jefferson Dispatcher Pleads Guilty to Wire FraudRead the Press Release
U.S. Attorney Peter G. Strasser announced that NICOLE SERUNTINE, age 35, an employee of Company A.M.M., pleaded guilty today to a one-count Bill of Information charging her with wire fraud.
According to the Bill of Information, from around June 2010 through February 2017, NICOLE SERUNTINE worked as a secretary and dispatcher at Company A.M.M., located in Jefferson, Louisiana. Around October 2014 through February 17, 2017, SERUNTINE devised a scheme to defraud Company A.M.M. out of more than $500,000 by using her role as administrative assistant to order a fuel card that she was not entitled to use, and unlawfully used it for her own personal expenses, including food, gas, and cash advances.
NICOLE SERUNTINE could face up to 20 years imprisonment, a fine of up to $250,000 or twice the gross gain or loss, 3 years of supervised release, and a special assessment of $100.
U.S. Attorney Peter G. Strasser stated that a Bill of Information is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the United States Secret Service. Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.
Three Individuals Charged for Making False Statements to a BankRead the Press Release
United States Attorney Peter G. Strasser announced that JARED CASTELLAW (“CASTELLAW”), and PATRICK HEALY (“HEALY”), employees of an undisclosed entity, ABC Homes, LLC, located in St. Bernard Parish, and VALERIE SCHONES (“SCHONES”), a loan officer from an undisclosed mortgage lending institution, XYZ Financial, based in Tuscon, Arizona, were charged on Thursday, October 25, 2018 in a one-count Bill of Information for Making False Statements to a Financial Institution.
According to the Information, beginning in or around October 2008 and continuing to on or about May 2009, CASTELLAW, HEALY, and SCHONES made false statements to the Federal Housing Administration “FHA” in order to qualify for FHA insured loans.
If convicted, CASTELLAW, HEALY, and SCHONES face a maximum of 30 years imprisonment, a fine of not more than $1,000,000, supervised release of up to 5 years, and a special assessment of $100.
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.
The case was investigated by The Department of Housing and Urban Development Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Sharan E. Lieberman and Edward J. Rivera.
Jerome Kieffer and Armstead Kieffer Found Guilty of Felony Murder Related to May 2017 Loomis Armored Car Robbery, a Separate Robbery of a Brinks Armored Car in October 2015, Lying to Federal Grand Jury, and Being a Felon in Possession of a FirearmRead the Press Release
U.S. Attorney Peter G. Strasser announced that JEROME KIEFFER, age 24, and JEROME’s father, ARMSTEAD KIEFFER, age 53, of New Orleans were found guilty today after a jury trial before United States District Judge Ivan L.R. Lemelle to charges of conspiracy to commit bank robbery, armed bank robbery, use of a firearm in furtherance of a crime of violence, armed bank robbery resulting in death, murder, making false statements to federal grand jury and being a felon in possession of a firearm.
JEROME KIEFFER and ARMSTEAD KIEFFER, who are father and son, were found guilty of committing two armored car robberies, a 2015 robbery at the Chase Bank on N. Board and a 2017 attempted robbery at the Campus Federal Credit Union on Tulane. JEROME KIEFFER spent several days planning the 2015 robbery and the getaway. JEROME KIEFFER and DELTOINE SCOTT, a co-defendant who pled guilty, waited behind a hole they had cut in a wooden fence and jumped out with guns when they saw the guard move away from the armored car. They then fled back through the hole and down an alley to where they had previously parked a getaway vehicle. They got the guns they used in the robbery from ARMSTEAD KIEFFER and they returned to ARMSTEAD KIEFFER’s house immediately after the robbery to count the proceeds.
JEROME KIEFFER and ARMSTEAD KIEFFER were also found guilty for their participation in the 2017 attempted robbery that resulted in the death of Loomis guard James McBride. JEROME KIEFFER had rented an apartment that overlooked the scene of the attempted robbery and had seen an armored car servicing the ATMs that his apartment overlooked in the weeks prior to the robbery. JEROME KIEFFER along with co-defendant SCOTT borrowed a distinctive black, white, truck from SCOTT’s grandfather on the day of the attempted robbery. SCOTT met with JEROME KIEFFER and ARMSTEAD KIEFFER to plan the robbery and ARMSTEAD KIEFFER acted as the lookout.
JEROME KIEFFER, and ARMSTEAD KIEFFER, face a mandatory life sentence. Sentencing will be held before United States District Judge Ivan L.R. Lemelle in approximately 90 days.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys David Haller and Michael McMahon are in charge of the prosecution.
New York Man Sentenced for Heroin and Cocaine ConspiracyRead the Press Release
U.S. Attorney Peter G. Strasser announces the sentencing yesterday of LUIS J. COTTO, age 31, a resident of New York, for charges stemming from a heroin and cocaine trafficking conspiracy before U.S. District Judge Mary Ann Vial Lemmon. Judge Lemmon sentenced COTTO to a total of (78) months in prison followed by (2) years of supervised release.
According to court documents, beginning in 2015 through 2016, agents with the Drug Enforcement Administration conducted an investigation that revealed the existence of a drug trafficking ring operating in St. Rose and LaPlace, Louisiana. Agents learned that COTTO was a source of narcotics for members of this conspiracy, driving narcotics into Louisiana from Texas, where he had owned a residence as well.
Court documents also outline that, on August 7, 2016, COTTO was stopped for a traffic violation while headed southwest on Interstate 44 near Vinita, Oklahoma, by the Oklahoma Highway Patrol. Based on COTTO’S suspicious conduct, the trooper called a trained drug canine to conduct an open-air sniff of COTTO’S vehicle. The canine alerted to the presence of contraband in the car. State troopers searched the vehicle and found approximately $225,000.00 in U.S. currency wrapped in plastic in one of the door panels.
COTTO is one of the last defendants to be sentenced in this case. Four defendants, who were convicted after trial, Andre Staggers, Corey Session, Gregory London, Jr., and Leonard Morrison, will be sentenced by Judge Lemmon on November 8, 2018.
U.S. Attorney Strasser praised the conviction as the result of a coordinated effort of federal and state law enforcement authorities within the Drug Enforcement Administration’s Gulf Coast High Intensity Drug Trafficking Area (HIDTA) Program. The DEA’s HIDTA Group #11, operating out of the New Orleans Field Division, includes members of the Louisiana State Police, Jefferson Parish Sheriff’s Office, and other local agencies. U.S. Attorney Strasser extended his thanks to the Oklahoma Highway Patrol for their assistance in this investigation. Assistant United States Attorneys Matthew R. Payne, Brittany L. Reed, and David Howard Sinkman are in charge of the prosecution. Also assisting in the prosecution is Special Assistant United States Attorney Andre Gaudin, who is assigned from the Orleans Parish District Attorney’s Office to the DEA HIDTA Group.
New Orleans Man Sentenced to Ten Years in Prison in St. Charles Parish-Based Narcotics ConspiracyRead the Press Release
U.S. Attorney Peter G. Strasser announces the sentencing on Wednesday, October 24, 2018 of KIRK BALLARD, age 37, of New Orleans, by U.S. District Judge Mary Ann Vial Lemmon.
According to court documents, BALLARD was a member of a narcotics distribution conspiracy based in St. Charles Parish that sold narcotics in St. Charles, St. John the Baptist, and other parishes near New Orleans. On August 23, 2015, BALLARD was pulled over by a Louisiana State Police (LSP) trooper for a traffic violation while travelling east on Interstate 10 in St. John the Baptist Parish. BALLARD said that he was returning home to New Orleans from Houston. An LSP K-9 positively alerted to the presence of narcotics in BALLARD’s car. Officers then searched the vehicle and found 9.8 pounds of marijuana (approximately 4.45 kilograms) and 1,956 tablets of methamphetamine (weighing approximately 473 grams).
BALLARD previously pleaded guilty to two counts of the Second Superseding Indictment: conspiracy to distribute marijuana and possession with the intent to distribute 50 grams or more of methamphetamine. Judge Lemmon sentenced BALLARD to a total of 10 years in prison. He also was sentenced to eight years of supervised release.
U.S. Attorney Strasser praised the conviction as the product of a coordinated effort between federal and state law enforcement authorities within the Drug Enforcement Administration’s Gulf Coast High Intensity Drug Trafficking Area (HIDTA) Program. The DEA’s HIDTA Group #11, operating out of the New Orleans Field Division, includes members of the Louisiana State Police, Jefferson Parish Sheriff’s Office, and other local agencies.
The prosecution is being handled by Assistant United States Attorneys Matthew R. Payne, Brittany L. Reed, and David Howard Sinkman. Also assisting in the prosecution is Special Assistant United States Attorney Andre Gaudin, who is assigned from the Orleans Parish District Attorney’s Office to the DEA HIDTA Group.
Mexican National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Peter G. Strasser announced that ELVA RAMIREZ-LAMBERTO, age 35, a citizen of Honduras, was charged yesterday in a one-count bill of information with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326(a).
According to the bill of information, ELVA RAMIREZ-LAMBERTO reentered the United States on or about September 18, 2018, after having been previously removed therefrom on or about August 31, 2018.
If convicted, ELVA RAMIREZ-LAMBERTO faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year 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 United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Man Pleads Guilty to Two Robberies at Gunpoint and Firearms ViolationsRead the Press Release
U.S. Attorney Peter G. Strasser announced that STEPHAN MITCHEL THOMAS, age 22, of Holden, Louisiana, pleaded guilty on Wednesday, October 24, 2018 to federal firearms violations and Hobbs Act robberies in a seven-count indictment.
According to court documents, THOMAS and others robbed drug dealers at gunpoint on July 11, 2016 and on September 1, 2016. For this conduct, THOMAS pleaded guilty to two counts of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. On another occasion, THOMAS possessed a firearm silencer, a short-barrel rifle, and a sawed-off shotgun, without registering these firearms in the National Firearms Registration and Transfer Record.
THOMAS faces, as to each count of Hobbs Act robbery, a maximum term of imprisonment of 20 years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment. As to the count of brandishing a firearm during a crime of violence, THOMAS faces a minimum sentence of seven years up to a maximum term of imprisonment of life, consecutive to any other term of imprisonment, a fine of $250,000, five years supervised release after imprisonment, and a $100 special assessment. As to each count of possessing unregistered firearms, THOMAS faces a maximum term of imprisonment of 10 years, a fine of $10,000, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Ivan L.R. Lemelle set sentencing for January 30, 2018.
U. S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Hammond Police Department, St. Tammany Parish Sheriff’s Office and the Tangipahoa Parish Sheriff’s Office in investigating this matter. The case is being prosecuted by Assistant United States Attorneys Maria M. Carboni and Shirin Hakimzadeh.
Jamaican National Pled Guilty in Conspiracy to Commit Mail and Wire FraudRead the Press Release
U.S. Attorney Peter G. Strasser announced Wednesday, October 24, 2018 that ALEX SAUNDERS, age 26, a resident of Wylie, Texas, pleaded guilty to one count of conspiracy to commit mail and wire fraud.
According to the Bill of Information filed on August 3, 2018, in or before August 2013, and continuing through December 2015, SAUNDERS and others operated a scheme to contact elderly individuals and people with diminished capacity who would be susceptible to being scammed. The scheme involved contacting victims by telephone through Voice over Internet Protocol (“VoIP”) and informing them they had won a lottery and needed to pay SAUNDERS and others monies by cash, check, wire, and other methods in order to claim their lottery winnings.
After receiving victims’ funds through United States mail, private mail carrier, or through an electronic transfer, SAUNDERS, and other co-conspirators known and unknown to the United States Attorney, with knowledge that the money they received was obtained through false and fraudulent pretenses, did knowingly and intentionally transfer the stolen money to bank accounts in Jamaica.
Co-conspirator Andre Bowyer, charged in case 16-96 “J” in the Eastern District of Louisiana, directed co-conspirator Debra Krom, charged in case 18-30 “R” in the Eastern District of Louisiana, and SAUNDERS and others residing in the United States, to open bank accounts in the United States for the purpose of receiving money from elderly victims and transferring the proceeds into Bowyer’s account in Jamaica. It was part of the scheme and artifice to defraud that on certain dates between August 2013 and December 2015, the defendant, SAUNDERS, Krom and others, conspired with Bowyer to accomplish the unlawful scheme of fooling elderly victims into believing they had won a sweepstakes, causing the victims to send money via the United States Postal Service or by wire transfer to SAUNDERS, Krom or others. Immediately after receiving the funds in the mail from the victims, SAUNDERS, Krom, and others transferred the ill-gotten proceeds from their accounts to Bowyer’s account in Jamaica.
SAUNDERS is scheduled to be sentenced on January 23, 2019 before United States District Court Judge Susie Morgan. He faces a maximum of 5 years imprisonment, a fine of not more than $250,000, supervised release of up to 3 years, and a special assessment of $100.
U.S. Attorney Strasser commended special agents of the United States Secret Service, the United States Postal Inspection Service, and the United States Department of Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Sharan E. Lieberman.
Indictment Charges New Orleans Man with Violations of Federal Gun Control ActRead the Press Release
U.S. Attorney Peter G. Strasser announced that CHARLES BROWN, age 30, of New Orleans, was charged with one count of conspiring to make false statements in connection with the purchase of a firearm and one count of being felon in possession of a firearm.
According to the indictment, on or about July 27, 2018, CHARLES BROWN conspired with an individual to purchase a firearm by falsely representing the identity of the real purchaser of the firearm, in violation of Title 18, United States Code, Sections 371, 922(a)(6) and 924(a)(2). That same day, CHARLES BROWN, a convicted felon, possessed the firearm, in violation of Title 18, United States Code, Sections, 922(g)(1) and 924(a)(2).
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.
If convicted, CHARLES BROWN faces, as to Count One of the Indictment, a maximum term of imprisonment of five years, a fine of $250,000, three years of supervised release after imprisonment, and a $100 special assessment. As to Count Two of the Indictment, the defendant face a maximum term of imprisonment of ten years, a fine of $250,000, three years of supervised release after imprisonment, and a $100 special assessment.
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 safer for everyone. Attorney General Jeff Sessions has made turning
Convicted Felon Charged with Illegal Possession of a FirearmRead the Press Release
U.S. Attorney Peter G. Strasser announced yesterday that a federal grand jury returned an indictment against defendant KEVIN CRAWFORD, of New Orleans, for being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1). CRAWFORD faces a maximum term of imprisonment of ten years, a $250,000 fine, three years supervised release following any term of imprisonment, and a $100 special assessment fee.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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 safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This matter was handled by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the New Orleans Police Department. Assistant United States Attorney Duane A. Evans is prosecuting the case.
New Orleans Man Sentenced, in Methamphetamine-Trafficking ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that STEFEN DAIGLE, age 31, of New Orleans, was sentenced yesterday after pleading guilty to one count of conspiring to traffic 500 grams or more of a mixture containing methamphetamine in the Eastern District of Louisiana. United States District Judge Susie Morgan sentenced DAIGLE to (78) months imprisonment and (5) years supervised release.
DAIGLE is one of the eleven defendants charged in a 23-count federal indictment. Specifically, the indictment alleges that DAIGLE conspired to sell large quantities of methamphetamine with codefendants Peter Giandalone, Julien Polk, Paul Melancon, Jeffrey Clines, James Hatch, Angel Renee Vidaure, Eulalio Torres-Cadenas, Delio Alfredo Lopez-Lopez, Lindsey Lopez, and Jacob Higginbotham. The indictment also alleges a number of individual acts of distributing and possessing with intent to distribute methamphetamine, as well as firearm offenses for codefendants Hatch, Vidaure, and Lopez-Lopez. Law enforcement developed evidence against this group of defendants using controlled purchases of methamphetamine, traffic stops and seizures, consensually recorded text messages and phone calls, search warrants, cooperator information, and self-incriminating statements.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, Louisiana State Police, Jefferson Parish Sheriff’s Office, Texas Department of Public Safety, Texas Highway Patrol, Montgomery County (Texas) Sheriff’s Office, Immigration and Customs Enforcement, AMTRAK Police, and the Orleans Parish District Attorney’s Office. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
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Vascular Access Centers to Pay at Least $3.825 Million to Resolve False Claims Act AllegationsRead the Press Release
WASHINGTON – Philadelphia-based Vascular Access Centers L.P., along with its 23 subsidiary and related corporations (collectively “VAC”), has agreed to pay at least $3.825 million to resolve claims that it violated the False Claims Act by billing Medicare for non-reimbursable vascular access procedures performed on End Stage Renal Disease (ESRD) beneficiaries and engaging in an alleged kickback scheme related to referrals for such procedures, the Department of Justice announced today.
The settlement resolves allegations that VAC, which currently operates facilities in eight states, billed Medicare for vascular access surgical procedures performed on ESRD beneficiaries, including fistulagrams and percutaneous transluminal angioplasties, without all of the required medical documentation supporting the necessity of the procedures. The settlement also resolves allegations that VAC submitted false claims to Medicare for services that resulted from referrals that VAC had induced through improper remuneration to physician investors and medical directors, in violation of the Anti-Kickback Statute. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
VAC has agreed to pay a minimum of $3.825 million in a series of fixed payments over five years, and could pay up to a maximum of $18,360,794, if certain contingencies are triggered.
“Medicare patients with End Stage Renal Disease, like other beneficiaries, are entitled to receive care in accordance with their clinical needs and not based on the financial interests of healthcare providers,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “Entities and individuals that attempt to profit through improper financial incentives and thereby bypass independent clinical decision-making will be held accountable.”
“Medicare fraud hurts not only patients and honest practitioners, but all taxpayers who pay hard-earned dollars into the nation’s public fisc,” said United States Attorney for the Eastern District of Louisiana Peter G. Strasser. “The favorable resolution of this False Claims Act matter illustrates our firm commitment to use all available remedies, both civil and criminal, to attack healthcare fraud at its source.”
VAC has also entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG), requiring the company to engage in significant compliance efforts over the next five years, including a focus on VAC’s arrangements with physicians and other health care providers for compliance with the Anti-Kickback Statute.
“Our Corporate Integrity Agreement provides future protection for patients and federal health care programs through controls and monitoring designed to ensure that VAC only provides medically necessary services to patients,” said Gregory E. Demske, Chief Counsel to the Inspector General for the United States Department of Health and Human Services. “Our CIA will also help try to ensure that doctors who are referring patients for medical procedures are doing so based on the best interest of the patient, and not based on financial considerations.”
The settlement resolves allegations originally brought in two lawsuits filed by whistleblowers under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The whistleblowers will collectively receive at least $612,000 as their share of the settlement.
The United States’ investigation in one case was handled by the U.S. Attorney’s Office for the Southern District of New York, and in the second case was a coordinated effort by the Civil Division of the Department of Justice and the U.S. Attorney’s Office for the Eastern District of Louisiana. The Department of Health and Human Services Office of Inspector General assisted in both investigations.
The cases are captioned United States ex rel. Levine v. Vascular Access Centers, L.P., et al., Case No. 12-civ-5103 (S.D.N.Y.), and United States ex rel. Boogaerts, et al. v. Vascular Access Centers, L.P., et al., Case No. 2:17-cv-02786-EEF-KWR (E.D. La.).
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Vascular Access Centers to Pay at Least $3.825 Million to Resolve False Claims Act AllegationsRead the Press Release
Philadelphia-based Vascular Access Centers L.P., along with its 23 subsidiary and related corporations (collectively “VAC”), has agreed to pay at least $3.825 million to resolve claims that it violated the False Claims Act by billing Medicare for non-reimbursable vascular access procedures performed on End Stage Renal Disease (ESRD) beneficiaries and engaging in an alleged kickback scheme related to referrals for such procedures, the Department of Justice announced today.
The settlement resolves allegations that VAC, which currently operates facilities in eight states, billed Medicare for vascular access surgical procedures performed on ESRD beneficiaries, including fistulagrams and percutaneous transluminal angioplasties, without all of the required medical documentation supporting the necessity of the procedures. The settlement also resolves allegations that VAC submitted false claims to Medicare for services that resulted from referrals that VAC had induced through improper remuneration to physician investors and medical directors, in violation of the Anti-Kickback Statute. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
VAC has agreed to pay a minimum of $3.825 million in a series of fixed payments over five years, and could pay up to a maximum of $18,360,794, if certain contingencies are triggered.
“Medicare patients with End Stage Renal Disease, like other beneficiaries, are entitled to receive care in accordance with their clinical needs and not based on the financial interests of healthcare providers,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “Entities and individuals that attempt to profit through improper financial incentives and thereby bypass independent clinical decision-making will be held accountable.”
“Medicare fraud hurts not only patients and honest practitioners, but all taxpayers who pay hard-earned dollars into the nation’s public fisc,” said United States Attorney for the Eastern District of Louisiana Peter G. Strasser. “The favorable resolution of this False Claims Act matter illustrates our firm commitment to use all available remedies, both civil and criminal, to attack healthcare fraud at its source.”
VAC has also entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG), requiring the company to engage in significant compliance efforts over the next five years, including a focus on VAC’s arrangements with physicians and other health care providers for compliance with the Anti-Kickback Statute.
“Our Corporate Integrity Agreement provides future protection for patients and federal health care programs through controls and monitoring designed to ensure that VAC only provides medically necessary services to patients,” said Gregory E. Demske, Chief Counsel to the Inspector General for the United States Department of Health and Human Services. “Our CIA will also help try to ensure that doctors who are referring patients for medical procedures are doing so based on the best interest of the patient, and not based on financial considerations.”
The settlement resolves allegations originally brought in two lawsuits filed by whistleblowers under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The whistleblowers will collectively receive at least $612,000 as their share of the settlement.
The United States’ investigation in one case was handled by the U.S. Attorney’s Office for the Southern District of New York, and in the second case was a coordinated effort by the Civil Division of the Department of Justice and the U.S. Attorney’s Office for the Eastern District of Louisiana. The Department of Health and Human Services Office of Inspector General assisted in both investigations.
The cases are captioned United States ex rel. Levine v. Vascular Access Centers, L.P., et al., Case No. 12-civ-5103 (S.D.N.Y.), and United States ex rel. Boogaerts, et al. v. Vascular Access Centers, L.P., et al., Case No. 2:17-cv-02786-EEF-KWR (E.D. La.).
Talisheek Man Pleads Guilty to Methamphetamine Trafficking and Illegal Possession of FirearmsRead the Press Release
NEW ORLEANS – U.S. Peter G. Strasser announced that JAMES MOORE, JR., age 48, of Talisheek, Louisiana, pleaded guilty today to possession with the intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code, Section 924(c)(1)(A), respectively.
According to previously filed court documents, beginning in January 2016, the FBI conducted numerous controlled purchases of methamphetamine from MOORE. Their investigation further revealed MOORE to be in possession of numerous firearms. On August 26, 2016, several search warrants were executed and MOORE was arrested by the FBI.
As to the drug charges, MOORE faces a maximum penalty of up to twenty years imprisonment, a $1,000,000 fine, and a five year term of supervised release. As to the weapons charge, MOORE faces a minimum of five years to life imprisonment (to be served consecutive to any other imposed terms of imprisonment), a $250,000 fine, and a three year term of supervised release. MOORE will be sentenced on February 20, 2019.
U.S. Attorney Strasser praised the work of the FBI New Orleans Division JTTF for investigating this matter. Assistant United States Attorney Gregory M. Kennedy is in charge of the prosecution.
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Eight New Orleans-Area Defendants Plead Guilty to Scheme to Possess Oxycodone by Fraud; Six of the Eight also Plead Guilty to Scheme to Possess with Intent to Distribute Oxycodone on the Black MarketRead the Press Release
WASHINGTON – Eight New Orleans, Louisiana-area defendants have pleaded guilty for their participation in a conspiracy to obtain oxycodone through fraud by using fictitious prescriptions. Six of the eight defendants have also pleaded guilty for the roles in a scheme to possess with intent to distribute oxycodone on the black market.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office and Special Agent in Charge Stephen G. Azzam of the U.S. Drug Enforcement Administration (DEA)’s New Orleans Field Division made the announcement.
Jesse J. Wildenfels, 39, of Metairie, Louisiana, pleaded guilty today to a dual-object conspiracy to acquire and obtain possession of oxycodone by fraud and to possess oxycodone with the intent to distribute. On Oct. 17, Luis R. Cabrera Jr., 38, of Norco, Louisiana; Vicki J. Skeldon, 44, of Metairie; Stephanie N. Free, 28, of Gretna, Louisiana; Jarrod A. Doubleday, 47, of Livingston, Louisiana; John A. Doubleday, 52, of Place, Louisiana; Whitney J. Swan III, 48, of Saint Rose, Louisiana; and Cynthia B. Foret, 41, also of Norco, pleaded guilty to their roles in violating the Controlled Substances Act. Cabrera, Skeldon, Free, John Doubleday and Swan pleaded guilty to a dual-object conspiracy to acquire and obtain possession of oxycodone by fraud and to possess oxycodone with the intent to distribute. Jarrod Doubleday and Foret pleaded guilty to conspiracy to obtain possession of oxycodone by fraud.
“These defendants were responsible for over 10,000 Oxycodone pills flowing onto the streets in and around New Orleans,” said Assistant Attorney General Benczkowski. “I commend the prosecutors in the Medicare Fraud Strike Force and the U.S. Attorney’s Office, along with our law enforcement partners, for their outstanding efforts to disrupt the illegal sale of opioids on the black market.”
“The proliferation of illegally obtained opioids flooding our community has made a significant contribution to the abuse of prescription drugs which plagues many families,” said U.S. Attorney Strasser. “Cases such as this shows the commitment DOJ has to our community by combating this growing threat.”
“Driven by greed and addiction, these eight defendants manipulated a system established to assist patients with legitimate medical conditions,” said FBI Special Agent in Charge Rommal. “Through their illicit gains, these defendants contributed to the daily oxycodone epidemic taking this nation by storm. By removing these defendants from our streets and communities, the FBI, in conjunction with our federal, state, and local law enforcement partners were able to take the drugs out of an addict’s hands and hopefully save a life or two.”
“The eight individuals involved in this scheme heartlessly contributed to the opioid epidemic plaguing our society today,” said DEA Special Agent in Charge Azzam. “This malicious conduct puts lives at risk and won’t be tolerated. DEA, along with our law enforcement partners, will continue to aggressively pursue those who seek to perpetuate and profit from the opioid crisis in this country and bring them to justice.”
The charges stem from the defendants’ involvement in a prescription drug diversion conspiracy in the greater New Orleans area. The conspiracy in total resulted in the diversion of approximately 10,000 oxycodone pills on the black market.
In pleading guilty, Cabrera, Skeldon, Free, John Doubleday, Swan and Wildenfels admitted that, between February 2017 and June 2018, they either provided their personal identifying information for the purpose of having fictitious prescriptions for oxycodone created in their names or referred co-conspirators for the purpose of having fictitious prescriptions for oxycodone written in their co-conspirators’ names. The prescriptions were then filled at area pharmacies and a portion of oxycodone pills obtained with those prescriptions were subsequently sold on the black market. Additionally, in pleading guilty, Jarrod Doubleday admitted to filling fictitious prescriptions for oxycodone in his own name between April 2017 and May 2017. And, in pleading guilty, Foret admitted to forging prescriptions for oxycodone in her own name and in the name of her co-conspirators between February 2015 and October 2016, which were ultimately filled.
U.S. District Judge Lance M. Africk for the Eastern District of Louisiana set sentencing for Cabrera, Skeldon, Free, Doubleday and Swan on Jan. 24, 2019, and for Doubleday, Foret and Wildenfels on Feb. 7, 2019.
This case was investigated by the FBI, HHS-OIG, the DEA and the Jefferson Parish Sheriff’s Office. Trial Attorney Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Myles Ranier of the Eastern District of Louisiana are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
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Slidell Man Pleads Guilty to Conspiring to Sell Fentanyl and Heroin, and to Firearms ChargesRead the Press Release
NEW ORLEANS, LOUISIANA –U.S. Attorney Peter G. Strasser announced that KENNETH MARTIN, age 44, from Slidell, Louisiana, pleaded guilty to conspiring to distribute and to possesses with the intent to distribute 40 grams or more of fentanyl and 100 grams or more of heroin, and to possession of three firearms in furtherance of his drug trafficking.
MARTIN pleaded guilty to conspiring, from at least May 23, 2016, through August 2, 2017, to distribute 40 grams or more of fentanyl and 100 grams or more of heroin. MARTIN also pleaded guilty to distribution of heroin or fentanyl, to being a felon in possession of three firearms—a revolver, a semi-automatic pistol, and a shotgun—and to possessing those firearms in furtherance of the drug trafficking conspiracy.
For the drug charges, MARTIN faces a sentence of imprisonment of at least five years and up to forty years in prison. For the charge of possessing of a firearm in furtherance of the drug trafficking conspiracy, he faces at least five years and up to life in prison, all of which must be consecutive to his sentence for other counts.
Judge Nannette Jolivette Brown set sentencing for January 10, 2019.
U.S. Attorney Strasser praised the work of the Department of Homeland Security, the Drug Enforcement Administration, the Federal Bureau of Investigation, the St. Bernard Parish Sheriff’s Office, and the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
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