Eastern District of Louisiana
Press releases recorded for this federal judicial district.
Former St. Charles District Attorney Harry Morel Pleads Guilty to Obstruction of JusticeRead the Press Release
U.S. Attorney Kenneth A. Polite announced today HARRY J. MOREL, JR., age 73, pled guilty to obstruction of justice in violation of Title 18, United States Code, Section 1512(d)(1).
According to court records, MOREL served as the elected prosecutor of St. Charles Parish, Louisiana from on or about January 1, 1979 until May 31, 2012. Thereafter, he became an Assistant District Attorney in the Office of the District Attorney for St. Charles Parish and remained in that position until January 11, 2013. MOREL resided in, and his office was located in, St. Charles Parish, Louisiana, in the Eastern District of Louisiana.
As District Attorney and as an Assistant District Attorney for St. Charles Parish, MOREL was responsible for prosecuting individuals charged with criminal and traffic offenses against the State of Louisiana. As the District Attorney, MOREL had the authority and discretion to, among other things, make bail recommendations, make sentence recommendations and bring dismiss, forego or reduce charges.
MOREL freely admitted that he is guilty of Obstruction of Justice in that he harassed Individual "A" and attempted to prevent and dissuade Individual "A" from attending or testifying in an official proceeding, i.e., the federal grand jury, by telling Individual "A" to "get rid of” and to "destroy" the evidence of a meeting they had and to deny the inappropriate nature of the meeting to law enforcement officials. Furthermore, based on Individual "A"'s representations, MOREL believed there would be a federal Grand Jury investigation, and as a result asked her to conceal information that would have likely led to her being a witness before that body.
MOREL also admitted that on other occasions, between 2007 and 2009, he solicited sex from other individuals who were defendants or who had family members who were defendants in the St. Charles Parish criminal justice system. While soliciting sex from these individuals, MOREL likewise used the office of the District Attorney to provide benefits to these other individuals, including falsifying community service reports.
MOREL faces a maximum term of imprisonment of three years, a fine of $250,000 and one year of supervised release following any term of imprisonment. Under the terms of his Rule 11(c)(1)(B) plea agreement, MOREL acknowledges that the Government will recommend that the Court impose the maximum sentence of three years in prison. U.S. District Judge Kurt D. Engelhardt set sentencing for August 17, 2016.
U.S. Attorney Polite noted that the investigation has not implicated any other former or current employees of the St. Charles Parish District Attorney's Office.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, particularly Special Agent Michael Zummer, and the St. Charles Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorneys James Baehr and Mark Miller are in charge of the prosecution.
Former School Teacher Pleads Guilty to Transportation of PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DON FRANCIS, JR., age 45, of Metairie, pled guilty today for crimes involving the sexual exploitation of children.
According to court records, on February 5, 2014, Special Agents with the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”) assisted the Louisiana Department of Justice and the Jefferson Parish Sheriff’s Office with the execution of a search warrant at FRANCIS’s residence in Metairie. HSI computer forensic agents located 5,378 images and 362 videos depicting the sexual victimization of children (some of whom were infants) on FRANCIS’s computer.
FRANCIS faces a mandatory term of imprisonment of fifteen years, followed by up to a lifetime term of supervised release, and a $250,000 fine pursuant to his plea agreement. U.S. District Judge Sarah S. Vance set sentencing on August 3, 2016.
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 Polite praised the work of the special agents from the U. S. Department of Homeland Security-HSI, the Louisiana Department of Justice, and the Jefferson Parish Sheriff’s Office, in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.
Five Former New Orleans Police Officers Plead Guilty and are Sentenced in the Danziger Bridge Shooting CaseRead the Press Release
U.S. Attorney Kenneth A. Polite announced today that five former officers of the New Orleans Police Department (NOPD) pled guilty and were sentenced in connection with the federal civil rights prosecution of a police-involved shooting that occurred on the Danziger Bridge in the days after Hurricane Katrina. That shooting left two innocent civilians dead and four others seriously wounded. The defendants also pled guilty and were sentenced for their roles in an extensive cover-up of the shooting.
KENNETH BOWEN pled guilty to Counts 1, 11, and 20; deprivation of rights under color of law, conspiracy to obstruct justice, and obstruction of justice by engaging in misleading conduct, respectively. BOWEN was sentenced to ten years imprisonment, to be followed by up to five years of supervised release on Counts 1 and 11, and up to three years as to Count 20.
ROBERT GISEVIUS pled guilty to Counts 1, 11, and 21; deprivation of rights under color of law, conspiracy to obstruct justice, and obstruction of justice by engaging in misleading conduct, respectively. GISEVIUS was sentenced to ten years imprisonment, to be followed by up to five years of supervised release on Counts 1 and 11, and up to three years as to Count 21.
ROBERT FAULCON pled guilty to Counts 8, 11, and 22; deprivation of rights under color of law, conspiracy to obstruct justice, and obstruction of justice by engaging in misleading conduct, respectively. FAULCON was sentenced to twelve years imprisonment, to be followed by up to five years of supervised release on Counts 8 and 11, and up to three years as to Count 22.
ANTHONY VILLAVASO pled guilty to Counts 1, 11, and 23; deprivation of rights under color of law, conspiracy to obstruct justice, and obstruction of justice by engaging in misleading conduct, respectively. VILLAVASO was sentenced to seven years imprisonment, to be followed by up to five years of supervised release on Counts 1 and 11, and up to three years as to Count 23.
ARTHUR KAUFMAN pled guilty to Counts 11 and 17, conspiracy to obstruct justice and falsification of evidence to obstruct justice, respectively. KAUFMAN was sentenced to three years imprisonment, to be followed by up to three years of supervised release as to Count 11, and up to five years as to Count 17.
The defendants are each assessed a mandatory special assessment fee of $100 as to each count.
California Man Sentenced for Role in Manufacturing and Selling Fake Mercedes-Benz Diagnostic SoftwareRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARTIN VELLOZZI, age 58, of Rancho Palos Verdes, California, was sentenced today after previously pleading guilty to mail fraud for his role in creating and selling non-authentic Mercedes Benz diagnostic equipment
U.S. District Judge Susie Morgan sentenced VELLOZZI to four years’ probation and a $6,000 fine.
According to court documents, VELLOZZI owned LMV Industries, a California-based company that, among other things, offered technical information and support for Mercedes-Benz automobiles. Between about 2005 and July 2012, VELLOZZI produced and sold, with the help of companies located in Durham, North Carolina and Harahan, Louisiana, unauthorized, non-authentic versions of the Mercedes-Benz Star Diagnostic System (SDS), a hand-held computer containing proprietary, confidential software. The SDS is used by mechanics to diagnose problems with and assure the safety of Mercedes-Benz vehicles employing electronic control systems. The companies in Durham, North Carolina and Harahan, Louisiana—Beckmann Technologies, Inc. and The Brinson Company, respectively – have previously pleaded guilty and been sentenced.
According to court documents, VELLOZZI, in conjunction with the other companies, obtained, modified, and duplicated the authentic SDS software so that it would operate on ordinary laptop computers without Mercedes-Benz’s authorization or license.
The “real” SDS sold for between $8,300 and $22,000 each, while VELLOZZI sold the fake SDS for around $6,000 each. In total, VELLOZZI sold approximately ninety-five non-authentic SDS.
U.S. Attorney Polite praised the work of the Cyber Task Force of the FBI’s New Orleans Division in investigating this matter. Assistant United States Attorneys Jordan Ginsberg and Myles Ranier were in charge of the prosecution.
Marrero Homeowner Sentenced for Theft of Home Elevation Grant FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CINDY DANDRIDGE, age 43, of Marrero, was sentenced today after previously pleading guilty to a one-count Bill of Information charging her with theft of government funds.
U.S. District Judge Mary Ann Vial Lemmon sentenced DANDRIDGE to 12 months and a day imprisonment, followed by two years of supervised release. As part of the sentence, the Court also ordered DANDRIDGE to pay $50,000 in restitution to the government.
According to documents filed in federal court, DANDRIDGE owned a home in Marrero, Louisiana. In September and October 2010, DANDRIDGE executed application documents with the Home Elevation Mitigation Grant Program (“HMGP”) to receive federal grant funds to elevate her house in Marrero, Louisiana. The application was completed with the understanding that the grant monies would be used to elevate her home.
In January 2011, DANDRIDGE received federal HMGP grant monies totaling $50,000 to elevate her house in Marrero. DANDRIDGE deposited these federal funds into her personal bank accounts. However, instead of using the monies to elevate her home, DANDRIDGE used the grant monies to pay for personal expenses.
U.S. Attorney Polite praised the work of the Department of Homeland Security, Office of Inspector General, in investigating this matter. Assistant United States Attorney, Richard R. Pickens, II is in charge of the prosecution.
Honduran National, Previously Convicted of an Aggravated Felony, Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALLAN WENDERLAY DOMINGUEZ, age 33, a citizen of Honduras, was charged today in a one-count Indictment for reentry of removed alien previously convicted of an aggravated felony.
According to the Indictment, on or about February 11, 2016, DOMINGUEZ, was found in the United States after having been convicted on or about September 10, 2009, of a felony theft and subsequently officially deported and removed on or about June 24, 2011.
If convicted, DOMINGUEZ faces a maximum term of imprisonment of twenty years, a fine of up to $250,000, five years supervised release after imprisonment, and a $100 special assessment.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement, Office of Enforcement and Removal Operations Investigations in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Grand Jury Returns Indictment for Whitney Bank RobberyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LAVERT LAYMON, age 27, of Gretna, was charged today in a one-count Indictment with the March 31, 2016 robbery of the Whitney Bank branch located at 3740 Elysian Fields.
If convicted, LAYMON faces a maximum sentence of twenty years in prison, a $250,000 fine, and three years of supervised release.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Myles Ranier is in charge of the prosecution.
New Orleans Man Sentenced to 22 Years in Prison for Selling Heroin, Including While Being Incarcerated in OPPRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LIONEL THOMAS, age 30, of New Orleans, was sentenced today after previously pleading guilty to an Indictment charging him with violations of the Federal Controlled Substances Act.
U.S. District Judge Kurt D. Engelhardt sentenced THOMAS to 264 months imprisonment, to be followed by 10 years of supervised release.
According to the court records, THOMAS conspired with others known and unknown to possess with the intent to distribute and to distribute one kilogram or more of a mixture or substance containing a detectable amount of heroin, a Scheduled I drug controlled substance. THOMAS admitted to using the phone system while incarcerated at the Orleans Parish Prison, where all calls are recorded, to further his drug trafficking activities. Law enforcement officers also seized over $60,000 from THOMAS during various stops and searches in the fall of 2013.
U.S. Attorney Polite praised the work of the Special Agents of the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI), with assistance from Louisiana State Police and the New Orleans Police Department in investigating this matter. Assistant United States Attorney David Haller was in charge of the prosecution.
New Orleans Man Sentenced for Violation of the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARRIN MCCRAINEY, a/k/a “Skutta,” a/k/a “Darren McCraney,” age 33, of New Orleans, was sentenced today after pleading guilty to a one-count superseding Bill of Information for a violation of the Federal Gun Control Act.
U.S. District Judge Ivan L.R. Lemelle sentenced MCCRAINEY to 84 months, followed by five years of supervised release, and/or a fine of $250,000, and a $100 special assessment fee. MCCRAINEY will be surrendered to the custody of the Bureau of Prisons.
According to court documents, on April 4, 2015, MCCRAINEY brandished a firearm during and in relation to a drug trafficking crime as he robbed the victim of a quantity of marijuana, which affected interstate commerce.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Former Special Assistant United States Attorney Brian Ebarb was in charge of the prosecution.
Colombian National Sentenced for Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARCELINO OLAVE-GRANJA, age 46, a citizen of Colombia, was sentenced today after previously pleading guilty to a one-count indictment for illegal reentry of a removed alien.
U.S. District Court Judge Susie Morgan sentenced OLAVE-GRANJA to 10 months imprisonment, followed by one year of supervised release, and a $100 special assessment fee. OLAVE-GRANJA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on June 11, 2015, OLAVE-GRANJA was found in the United States after having been previously deported from the United States on June 9, 1998.
U.S. Attorney Polite praised the work of United States Customs and Border Protection agents in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
U.S. Attorney Polite Announces Events in Honor of National Crime Victims’ Rights WeekRead the Press Release
U.S. Attorney Kenneth A. Polite announced that his Office will observe National Crime Victims’ Rights Week through the following special events and programs:
Saturday, April 9, 2016 Crime Victim’s Rights Informational Table
4:00 pm – 7:00 pm Walmart Superstore, 1901 Tchoupitoulas St. New Orleans
Wednesday, April 13, 2016 Crime Victim’s Rights Informational Table
5:00 pm – 8:00 pm Young Leadership Council Wednesday at the Square,
Lafayette Square, 601 S Maestri Place, New Orleans
Thursday, April 14, 2016 Crime Victim’s Rights Informational Table
10:00 am Washington-St. Tammany Parish Crime Victim’s Recognition Ceremony
Washington-St. Tammany Parish Justice Center
701 N. Columbia St., Covington
Friday, April 15, 2016 Crime Victim’s Rights Informational Table
10:00 am -1:00 pm Circle Food Store, 1522 St. Bernard Avenue, New Orleans
Saturday, April 16, 2016 Crime Victim’s Rights Informational Table
9:00 am – 12:00 pm The Good Shepherd Nativity School
Community Health & Wellness Fair
Kingsley House Gymnasium
1600 Constance St., New Orleans
Members of the U.S. Attorney’s Office will be on-hand at each of these events. All members of the public are welcome to attend, where they can obtain information on victims’ rights and federal resources through the DOJ’s Office for Victims of Crime (“OVC”) and the Crime Victims Fund.
National Crime Victims’ Rights Week, celebrated nationally from April 10-16, 2016, honors and celebrates the achievements of the past thirty years in securing rights, protections, and services for victims. This year’s theme—Serving Victims. Building Trust. Restoring Hope.—presents the opportunity to highlight the importance of providing needed services at the earliest stage of victimization. Early intervention helps prevent both further victimization and involvement in the criminal justice system, thus addressing the cycle of violence and restoring hope for the future.
OVC encourages widespread participation in the week’s events and in other victim-related observances throughout the year. The U.S. Department of Justice will host OVC’s annual Service Awards Ceremony on Tuesday, April 12, in Washington, DC, to honor outstanding individuals and programs that serve victims of crime. For additional information about this year’s National Crime Victims’ Rights Week and how to assist victims in your community, please contact The U.S. Attorney’s Office, Eastern District of Louisiana Victim/Witness Unit at 504-680-3000 or visit www.usdoj.gov/usao/lae. For additional ideas on how to support victims of crime, visit the Office for Victims of Crime website, www.ovc.gov.
Metairie Man Sentenced to Six Years in Prison for Receipt of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALBERT J. DOYLE, JR., age 47, of Metairie, was sentenced today for crimes involving the sexual exploitation of children.
U.S. District Judge Eldon E. Fallon sentenced DOYLE to 72 months incarceration to be followed by ten years of supervised release. In addition, DOYLE was ordered to register as a sex offender under the Sex Offender Registration Notification Act.
According to court records, this investigation developed in April 2015 as a result of an undercover investigation conducted by the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”). After determining DOYLE was downloading images depicting the sexual victimization of children, HSI executed search warrants at DOYLE’s residences in Metairie and Baton Rouge. DOYLE was arrested during the execution of the search warrant after confessing to downloading and possessing images and videos depicting child pornography. HSI computer forensic examiners conducted a search of DOYLE’s seized computer equipment and located approximately 563 videos and 6,385 images depicting the sexual victimization of children on DOYLE’s electronic devices.
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 Polite praised the work of the U. S. Department of Homeland Security-HSI in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba was in charge of the prosecution.
Marrero Man Pleads Guilty to Theft of Government Funds Related to Hurricane KatrinaRead the Press Release
U.S. Attorney Kenneth A. Polite announced that PRENTISS MARTIN, age 51, of Marrero, pled guilty today to theft of government funds.
According to court documents, the Federal Emergency Management Agency (FEMA), an agency of the United States under the Department of Homeland Security, provided federal funds to the Hazard Mitigation Grant Program (HMGP), which provided grants to states and local governments to implement long-term hazard mitigation measures after a major disaster declaration.
MARTIN executed application documents with the HMGP to receive federal grant funds to reconstruct his house on Bay Street in New Orleans, Louisiana, which was damaged by Hurricane Katrina. In support of his HMGP Home Reconstruction Grant application, MARTIN submitted fraudulent documents. As a result of his fraudulent submissions, MARTIN accepted and received federal HMGP grant monies in the amount of $80,000 to reconstruct his house in New Orleans, Louisiana. When special agents from the U.S. Department of Homeland Security, Office of Inspector General traveled to MARTIN’s property on Bay Street, they observed a vacant lot.
MARTIN faces a maximum term of imprisonment of ten years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Eldon E. Fallon set sentencing for July 21, 2016.
U.S. Attorney Polite praised the work of the Department of Homeland Security, Office of the Inspector General, in investigating this matter. Assistant United States Attorney Loan "Mimi" Nguyen is in charge of the prosecution.
Oil Company Sentenced for Multiple Felonies Related to Violations of Offshore Oil Production Safety and Environmental RegulationRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Louisiana announced that ENERGY RESOURCE TECHNOLOGY GOM, LLC (ERT), was sentenced today to three years of probation and ordered to pay a $4 million fine and $200,000 community service payment by U.S. District Judge Ivan L.R. Lemelle after having pled guilty to two felony counts of violating the Outer Continental Shelf Lands Act and two felony counts of violating the Clean Water Act related to conduct on its offshore oil production facilities in the Gulf of Mexico. During the period of probation, ERT, its subsidiaries, agents and affiliated business entity Talos Energy Offshore, LLC, and employees thereof, will be required to comply with a Safety and Environmental Compliance Plan.
According to court documents, on or about November 26, 2012, ERT knowingly and willfully failed to comply with the regulations for hot work on its offshore production platform known as Ship Shoal 225. Specifically, contractors for ERT violated Title 30, Code of Federal Regulation, Section 250.113(c)(4), which mandates that welding and associated activities, also known as hot work, on offshore facilities shall not take place within 10 feet of a well bay unless production in that area is shut-in.
On or about November 27, 2012, on Ship Shoal 225, ERT knowingly and willfully failed to comply with the regulations for blowout preventer testing. A blowout preventer system is designed to ensure well control and prevent potential release of oil and gas and possible loss of well control. According to the Code of Federal Regulations, the blowout preventer system must be pressure tested at regular intervals, and the entire system must pass the pressure tests prior to resuming normal operations. According to Title 30, Code of Federal Regulations 250.617, the results of the pressure testing, including any problems or irregularities observed during the testing and the actions taken to remedy the problems, must be recorded. The blowout preventer test record and pressure chart must be signed and dated by the onsite representative as correct. The blowout preventer pressure chart and operations log are required to be maintained on the platform and available for inspection by BSEE.
According to the pressure chart for the tests conducted by ERT’s contractors on November 27, 2012, only 6 of the 7 required components were tested. The chart showed pressure testing failures that required the workers on the platform to re-test the blowout preventer system. However, at the conclusion of the testing, the blowout preventer chart was not approved for accuracy by the ERT on-site representative on duty nor did the workers re-test the system. Then, on or about November 29, 2012, inspectors with BSEE came onboard the platform at Ship Shoal 225 for a routine inspection and requested blowout preventer testing records. ERT could not produce an acceptable pressure test chart because of the deficiencies in the November 27, 2012 testing.
ERT also violated the Clean Water Act by tampering with the method of collecting the monthly overboard produced water discharge samples to be tested for oil and grease content pursuant to its NPDES permit. In Spring 2014, ERT became suspicious that contract operators were manipulating the integrity of the overboard produced water samples at some of its platforms by filtering the sample through coffee filters or other similar means to ensure that ERT would not be found to be in violation of its Permit. Although the Discharge Monitoring Reports for the platforms from October 2012 through March 2014, showed that the platforms were not discharging oil and grease in excess of the permit requirements, when ERT began an investigation, the results of which it self-reported to the United States, and took the samples in accordance with the Permit requirements, multiple platforms were shown to be in violation of the monthly discharge allowances. From April 2014 through June 2014, discharge monitoring samples correctly taken by ERT showed multiple Gulf of Mexico platforms, including High Island 557A, South Marsh Island 107A, Ship Shoal 225, Ship Shoal 224A, East Cameron 346A, Eugene Island 302C, South Timbalier 63A, Vermilion 331A and 171A, to be discharging oil and grease in excess of their monthly allowance under the Permit.
ERT’s most recent Clean Water Action violation occurred on or about June 9, 2015. On that day, two contract operators on an ERT oil production platform in the Gulf of Mexico at platform Vermilion 195A were engaged in bleeding pressure from the production casing on a plugged well. Operators routinely encounter liquid, including pollutants such as well bore fluid, acid, and hydrocarbon/oil residue, when bleeding pressure from well casings, and therefore precautions against an unpermitted discharge into the Gulf of Mexico should be taken. On or about June 9, 2015, the two contract operators onboard VR 195A did not take any precaution against a discharge of pollutants when they began bleeding down the pressure from the production casing. The contract operators attached a hose to the valve from which the casing pressure was to be released and put the end of the hose at the edge of the platform, allowing well bore fluid mixed with hydrocarbons to shoot out over the Gulf of Mexico falling into the water below in violation of the Clean Water Act.
“This is an excellent example of federal agencies working together, collaboratively and effectively, to ensure that oil and gas companies operating in areas within the Department's jurisdiction meet their professional and legal responsibilities,” stated Ron Gonzales, Special Agent in Charge of the Department of Interior-OIG-Energy Investigations Unit. “Matters of public safety and risk of environmental harm are included among the OIG's highest priorities, and we stand ready to work with the DOJ, BSEE, and the EPA to hold those violators accountable."
“It’s imperative that energy extraction be done responsibly and in ways that doesn’t put human health and the environment at risk,” said Ted Stanich, Acting Director of EPA’s criminal enforcement program. “When oil and gas operators cut corners and break the law, EPA will work with its law enforcement partners to hold them accountable in order to protect human health and the Gulf Coast ecosystem from harm.”
The case was investigated by the Department of Interior-Office of Inspector General (Energy Investigations Unit) with assistance from the Investigations and Review Unit, Bureau of Safety and Environmental Enforcement and the Environmental Protection Agency-Criminal Investigation Division.
The case was prosecuted by Assistant United States Attorney Emily K. Greenfield of the United States Attorney’s Office’s National Security Unit.
Mexican National Sentenced for Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RAYMUNDO CUEVAS-SOTO, age 40, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count Indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
U.S. District Court Judge Sarah S. Vance sentenced CUEVAS-SOTO to time served, followed by one year of supervised release, and a $100 special assessment. Additionally, CUEVAS-SOTO will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on October 31, 2015, the defendant was encountered by federal agents pursuant to a traffic stop. CUEVAS-SOTO had been previously removed from the United States on July 24, 2013.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Metairie Man Sentenced to over 10 Years in Prison for Trafficking a Minor into New Orleans to Work as a ProstituteRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TORREY LEDELL DAVIS, age 44, who last resided in Metairie, was sentenced today after previously pleading guilty to interstate transportation of a minor for the purpose of engaging in criminal sexual activity.
U.S. District Judge Sarah Vance sentenced DAVIS to 121 months imprisonment, to be followed by 10 years of supervised release. Additionally, DAVIS is required to register as a sex offender pursuant to the Sex Offender Registration Notification Act.
According to the court documents, in November 2012 DAVIS was contacted by an individual living in the Jackson, Mississippi area. That individual inquired whether DAVIS would be willing to train the victim, who had just turned sixteen years old, to work as a prostitute. DAVIS agreed, and on November 26, 2012, drove to the Scottish Inn in Jackson, Mississippi, picked up the victim, and drove her back to DAVIS’S residence in Metairie. Once at the Metairie residence, DAVIS forced the victim to dress provocatively and pose for sexually suggestive photographs, which he saved on his computer. The pictures were then used to create a prostitution advertisement on an online classified advertisement website often used to promote prostitution. DAVIS instructed the victim how to work as a prostitute, how to solicit clients, and how to avoid being caught by law enforcement officials. DAVIS also arranged for the victim to be paired with a female who had worked as a prostitute for DAVIS for approximately one year. At DAVIS’s instruction, the female drove the victim to the French Quarter of New Orleans to work as a prostitute. While in the French Quarter that evening, law enforcement officials arrested the minor for prostitution after an undercover officer arranged for the victim to perform a sexual act on the officer in exchange for $500.
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.”
The investigation was initiated by the New Orleans Police Department and investigated by the Federal Bureau of Investigation and the Louisiana State Police Special Victims Unit. The prosecution of this case was handled by Assistant United States Attorneys Jordan Ginsberg and K. Paige O’Hale.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALEX JAVIER HERNANDEZ-MEJIA, age 22, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of removed alien.
U.S. District Sarah S. Vance sentenced HERNANDEZ-MEJIA to time served and a $100 special assessment. HERNANDEZ-MEJIA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about November 9, 2015, HERNANDEZ-MEJIA was found in the United States after having been officially deported and removed on or about April 22, 2014.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ORLI DAGOBERTO ARGUETA-SANCHEZ, a/k/a Orli Dagoberto Argueta, age 27, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Bill of Information, on or about January 6, 2016, ARGUETA-SANCHEZ was found in the United States after having been officially deported and removed on or about November 7, 2008.
ARGUETA-SANCHEZ faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Ivan L.R. Lemelle set sentencing for May 25, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
New Orleans Man Charged with Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CLARK JAMES PELLEGRIN, JR., age 40, of New Orleans, has been charged in a one-count Bill of Information with wire fraud.
PELLEGRIN is charged with engaging in a multi-year scheme involving creditors on whose behalf he collected overdue debts from debtors. The scheme charges that PELLEGRIN negotiated with debtors even though he had no authority to negotiate and made collections from debtors on behalf of twenty-three different creditors in the approximate amount of $243,980, which funds he converted to his own use, instead of paying the creditors.
If convicted, PELLEGRIN faces a possible maximum sentence of twenty years imprisonment on the single count.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Postal Inspection Service. Assistant U.S. Attorney Patrice Harris Sullivan is in charge of the prosecution.
Former St. Charles District Attorney Harry Morel Charged with Obstruction of JusticeRead the Press Release
U.S. Attorney Kenneth A. Polite announced today the unsealing of a Bill of Information charging HARRY J. MOREL, JR., with obstruction of justice in violation of Title 18, United States Code, Section 1512(d)(1).
The Bill of Information charges MOREL with intentionally harassing an Individual A and thereby hindering, delaying, preventing, and dissuading Individual A from attending and testifying in a federal grand jury proceeding investigating possible wrongdoing by MOREL, in his capacity as St. Charles Parish District Attorney and Assistant District Attorney.
If convicted, MOREL faces a maximum term of imprisonment of three years, a fine of $250,000 and one year of supervised release following any term of imprisonment.
U.S. Attorney Kenneth Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite noted that the investigation has not implicated any other former or current employees of the St. Charles Parish District Attorney's Office.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, particularly Special Agent Michael Zummer, and the St. Charles Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney James Baehr is in charge of the prosecution.
Mexican National Indicted for Transferring False Social Security CardsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that VIDAL OROSCO-BARRIOS, age 29, was charged today in a four-count indictment for transferring false Social Security Cards in violation of Title 18, United States Code, Section 1028(a)(2).
According to the indictment, OROSCO-BARRIOS sold counterfeit Social Security Cards on four separate occasions to confidential informants working with the Department of Homeland Security.
If convicted, OROSCO-BARRIOS faces a maximum term of imprisonment of fifteen years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
Indictment Unsealed Charging New Orleans Resident with Heroin and Money Laundering ConspiraciesRead the Press Release
U.S. Attorney Kenneth A. Polite announced a two-count Indictment was unsealed yesterday that charges CORNELL PENDLETON, age 52, of New Orleans, with violations of federal drug and money laundering statutes, announced U. S. Attorney Kenneth Allen Polite, Jr. According to Count One in the Indictment, PENDLETON conspired with others to distribute and possess with intent to distribute one kilogram or more of heroin. According to Count Two, PENDLETON conspired with others to conduct financial transactions knowing that the transactions were designed to conceal the proceeds of an unlawful drug business.
PENDLETON was arrested on March 22, 2016. At the time of his arrest, agents from the Drug Enforcement Administration executed seizure warrants on assets tied to PENDLETON’s illegal drug and money laundering conspiracies. To date, law enforcement has seized from PENDLETON approximately $1 million in bank accounts and cashier’s checks.
If convicted of the heroin conspiracy, PENDLETON faces a minimum sentence of ten years in prison, a maximum life sentence, a fine of not more than $10,000,000, and a minimum of five years of supervised release. If convicted of the money laundering conspiracy, PENDLETON faces a maximum sentence of twenty years in prison, a fine of not more than $500,000, and not more than three years of supervised release.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorneys Brandon S. Long and Michael B. Redmann are in charge of the prosecution.
Three Louisiana Residents Plead Guilty to Illegal Possession of FirearmsRead the Press Release
U.S. Attorney Kenneth A. Polite announced today that STERLING ROBINSON, age 26, of Gretna, DEANDRE ROSE, age 23, and EVERETT ROSS, age 28, both of New Orleans, pled guilty to violations of the Federal Gun Control Act. ROBINSON pled guilty to possession of a firearm in furtherance of narcotics distribution. ROSS and ROSE each pled guilty to possession of firearms by felons.
According to court documents, on October 14, 2014, Gretna police officers were patrolling in the area of Milton and Pratt Streets when they noticed an illegally parked vehicle. As the officers approached the vehicle to issue a citation, they saw a bag of crack cocaine in the passenger door handle. The officers also observed a semi-automatic handgun secured between the passenger seat and the middle console. A short time later, the officers observed ROBINSON, ROSE, ROSS and a female acquaintance approach and attempt to enter the vehicle.
As ROBINSON was removed from the area of the front passenger seat, he resisted arrest and attempted to reach for the bag of crack cocaine. ROSS was removed from the driver’s seat of the vehicle and ROSE was removed from the rear passenger seat. The officers searched the vehicle and two additional handguns were discovered. A Ruger model P85 9mm semi-automatic handgun was found underneath the front of the driver’s seat and accessible to ROSS. A Springfield model XDM, .45-caliber semi-automatic handgun was found underneath the rear of the front passenger’s seat and accessible to ROSE. The initially-observed, Kahr model CW9, 9mm semi-automatic handgun was accessible to ROBINSON. Further investigation revealed that each of the firearms had been reported stolen.
Court records revealed that ROSS and ROSE each had two prior felony convictions in Orleans Parish Criminal District Court. As such, they both were prohibited from possessing firearms by both state and federal law.
ROBINSON faces a maximum term of imprisonment of life, a maximum fine of $250,000 and up to five years of supervised release following any term of imprisonment. ROSS and ROSE face a maximum terms of imprisonment of ten years, a maximum fine of $250,000 and up to three years of supervised release following any term of imprisonment. U.S. District Judge Jane Triche Milazzo scheduled sentencing for June 30, 2016.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New Orleans Division Office in investigating this matter. Assistant United States Attorney Nolan D. Paige, along with former Special Assistant United States Attorney Brian Ebarb, who was assigned from the Orleans Parish District Attorney’s Office are in charge of the prosecution.
Texas Woman Indicted on Charge of Possession with Intent to Distribute HeroinRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LORI BROADWAY, age 34, Galveston, Texas, was indicted today on one count of possession with the intent to distribute one kilogram or more of heroin.
According to court documents, on January 22, 2016, officers conducting narcotics interdiction at the AMTRAK station in New Orleans identified BROADWAY, a train passenger arriving from Houston, as a possible drug trafficker. After obtaining consent to search BROADWAY’s suitcases, officers seized approximately six kilograms of heroin.
If convicted of the charge, BROADWAY faces a minimum term of imprisonment of ten years, followed by a minimum of five years supervised release, and a fine of $10,000,000.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Louisiana State Police and the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Andre’ Jones is in charge of the prosecution.
Texas Man Pleads Guilty to Drug Conspiracy and MurderRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DERRICK FIELDS, age 34, of Texas, pled guilty today to participating in a conspiracy to distribute over 5 kilograms of cocaine hydrochloride and to participation in a murder that took place in League City, Texas that was done in the course of the drug conspiracy.
According to court records, FIELDS acknowledged the drug conspiracy involved between 50 and 150 kilograms of cocaine hydrochloride and over $1,000,000 in cash that was being distributed in 2015 between Texas and Georgia, via Louisiana. FIELDS also admitted that on July 30, 2015, he participated in the murder of Antonio Martins.
FIELDS will face a sentence of not less than 30 years and not more than life in prison, a fine of not more than $10,000,000, and at least five years of supervised release. U.S. District Judge Carl J. Barbier set sentencing for July 7, 2016.
U.S. Attorney Polite praised the work of the United States Drug Enforcement Administration (DEA), the Houston Police Department, the League City Police Department, and the District Attorney’s Office in Galveston, Texas for their cooperation with in bringing FIELDS and several of his co-conspirators to justice. Assistant United States Attorneys Maurice E. Landrieu, Jr. and André G. Jones are in charge of the prosecution.
Mexican National Pleads Guilty to Violation of the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that OMAR RICO-ALMANZA, age 34, a citizen of Mexico, plead guilty today to a one-count Indictment for violations of the Federal Gun Control Act.
According to the indictment, on or about November 5, 2015, RICO-ALMANZA, an alien present illegally in the United States, was found in possession of a SCCY Model CPX-2, 9mm semi-automatic pistol.
RICO-ALMANZA faces a maximum term of imprisonment of ten years, followed by three years of supervised release, a fine of $250,000, and a $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for July 7, 2016.
U.S. Attorney Polite praised the work of the Homeland Security Investigations of the U.S. Department of Homeland Security, in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Mexican National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BERNARDO RAMIREZ-VARGAS, age 33, a native of Mexico, pled guilty today to a one-count Indictment charging him with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, RAMIREZ-VARGAS was previously removed from the United States on June 30, 2011. RAMIREZ-VARGAS was later found in the Eastern District of Louisiana on January 25, 2016 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
RAMIREZ-VARGAS faces a maximum term of imprisonment of twenty (20) years, as well as a fine of $250,000. U.S. District Court Judge Carl J. Barbier set sentencing for July 7, 2016.
U.S. Attorney Polite 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.
Postal Worker Sentenced for Theft of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSHUA GRESHAM, age 27, of New Orleans, was sentenced today after previously pleading guilty to theft of mail.
U.S. District Judge Kurt Engelhardt sentenced GRESHAM to 2 years of probation, $750 fine, $300 special assessment and restitution in the amount of $10.
According to Court records, on or about July 9, 2014, GRESHAM, a United States Postal employee, removed $370.00 in cash from three greeting cards while on his postal route.
U.S. Attorney Polite praised the work of the U.S. Postal Service, Office of Inspector General for investigating this matter. Assistant U.S. Attorney G. Dall Kammer is in charge of the prosecution.
Mexican National Pleads Guilty to Unlawful Transfer of Identification DocumentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MEINARDO ALONSO-CASTILLO, age 30, a citizen of Mexico, pled guilty today to a one-count Bill of Information for the unlawful transfer of identification documents.
ALONSO-CASTILLO faces five years imprisonment, followed by five years of supervised release, and a $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentence for July 13, 2016.
According to court documents, from or about September 10, 2015 through December 9, 2015, ALONSO-CASTILLO transferred, without lawful authority, a means of identification of another person, to wit, Social Security cards, with the intent to commit, or to aid or abet, or in connection with, unlawful activity that constitutes social security fraud.
U.S. Attorney Polite praised the work of the Department of Homeland Security Investigations and Immigration and Customs Enforcement Agencies in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Mexican National Pleads Guilty to Unlawful Transfer of Identification DocumentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MEINARDO ALONSO-CASTILLO, age 30, a citizen of Mexico, pled guilty today to a one-count Bill of Information for the unlawful transfer of identification documents.
ALONSO-CASTILLO faces five years imprisonment, followed by five years of supervised release, and a $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentence for July 13, 2016.
According to court documents, from or about September 10, 2015 through December 9, 2015, ALONSO-CASTILLO transferred, without lawful authority, a means of identification of another person, to wit, Social Security cards, with the intent to commit, or to aid or abet, or in connection with, unlawful activity that constitutes social security fraud.
U.S. Attorney Polite praised the work of the Department of Homeland Security Investigations and Immigration and Customs Enforcement Agencies in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Harvey Woman Pleads Guilty to Conspiracy to Receive Illegal KickbacksRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ELESHIA WILLIAMS, age 45, of Harvey, pled guilty today to one count of conspiracy to receive illegal kickbacks.
On March 12, 2015, WILLIAMS was indicted along with 19 other defendants in a 26-count indictment charging approximately $30,052,295 in Medicare fraud.
According to court documents, WILLIAMS was a marketer for Abide Home Health Care Services, Inc. (Abide), a Louisiana home health agency. WILLIAMS contacted an Abide employee to confirm that the person she fraudulently referred for home health was a Medicare beneficiary. Once it was determined the referred individual was a Medicare beneficiary, an Abide co-conspirator scheduled a physician visit, usually with an Abide House Doctor – also a co-conspirator – well knowing that the individual referral to Abide was by a Marketer, instead of the beneficiary’s own health care professional.
WILLIAMS faces a maximum term of five years imprisonment, followed by three years of supervised release and a $250,000 fine. U.S. District Judge Susie Morgan set sentencing for September 21, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman and Andre Lagarde are in charge of the prosecution.
FnD Gang Members Sentenced for Racketeering, Narcotics, and Violent Crimes, including the Mother’s Day ShootingRead the Press Release
U.S. Attorney Kenneth A. Polite announced that four gang members from the Frenchmen/Derbigny gang, or “FnD,” were sentenced today for charges related to racketeering, narcotics, and crimes of violence. Among those violent crimes was the shooting of a second-line parade on Mother’s Day, May 12, 2013, in which twenty people suffered gunshot-related injuries.
The four defendants were all brothers and members of FnD, a gang that operated in the Seventh Ward of New Orleans with its hub at Frenchmen and North Derbigny Streets. The defendants included the leader, TRAVIS SCOTT, a/k/a “Trap,” a/k/a “Slim,” age 31, SHAWN SCOTT, a/k/a “Shizzle,” age 27; STANLEY SCOTT, a/k/a “Stizzle,” age 24; and AKEIN SCOTT, a/k/a “Keemy,” age 22. SHAWN SCOTT, STANLEY SCOTT, and AKEIN SCOTT all pled guilty on September 9, 2015. TRAVIS SCOTT pled guilty on October 13, 2015.
U.S. District Judge Ivan L.R. Lemelle sentenced TRAVIS and AKEIN SCOTT to life imprisonment plus 10 years consecutive, to be followed by 5 years of supervised release. SHAWN and STANLEY SCOTT were each sentenced to 40 years of imprisonment with credit for time served, to be followed by 5 years of supervised release. Restitution to the victims will be determined at a later date.
According to court documents, the FnD gang was an enterprise engaged in racketeering under federal law. TRAVIS SCOTT, AKEIN SCOTT, SHAWN SCOTT, and STANLEY SCOTT, as members of this gang, conspired to commit numerous overt acts in furtherance of the gang’s activities. Gang members sold illegal drugs, such as heroin and crack cocaine, and they committed acts of violence, including shootings. FnD members often sold drugs in the Frenchmen Meat Market, a convenience store located at the corner of Frenchmen and North Derbigny Streets. FnD members used intimidation, violence, and threats of violence to maintain the gang’s control over turf that extended from Elysian Fields Avenue, North Johnson Street, the I-10 Interstate Highway, St. Anthony Street, and North Claiborne Avenue.
Pursuant to plea agreements, TRAVIS SCOTT pled guilty to four counts in the Third Superseding Indictment, including one shooting. STANLEY SCOTT pled guilty to six counts, including perpetrating three shootings. SHAWN SCOTT pled guilty to five counts, which included two shootings. AKEIN SCOTT pled guilty to eight counts of the Third Superseding Indictment, which included his perpetrating five shootings in New Orleans. AKEIN SCOTT and SHAWN SCOTT pled guilty to the Mother’s Day shooting that occurred on May 12, 2013. All four defendants pleaded guilty to racketeering conspiracy and conspiracy to distribute over one kilogram of heroin.
Additional FnD members JEREMIAH JACKSON, GRALEN BROWN, BRIAN BENSON, and RICHMOND SMITH have previously pled guilty to gun and drug-related charges and are awaiting sentencing. CRYSTAL SCOTT pled guilty to drug-related charges and was previously sentenced to 120 months in prison, followed by 5 years of supervised release and a $100 special assessment.
This prosecution was the product of the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang Unit (“MAG”). As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Federal and local authorities also utilized tips through the Crimestoppers Program in the successful investigation of these crimes.
U.S. Attorney Polite praised the work of the ATF as part of the MAG Unit in investigating this matter. Assistant United States Attorneys Matthew Payne and Shirin Hakimzadeh, along with former Special Assistant United States Attorney Brian Ebarb, who was assigned from the Orleans Parish District Attorney’s Office were in charge of the prosecution.
Retired Colonel in Orleans Parish Sheriff’s Office Charged with Conspiracy to Commit Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite and FBI Special Agent in Charge Jeffrey S. Sallet announced that ROY AUSTIN, 69, of St. Tammany Parish and a retired Colonel of the Orleans Parish Sheriff’s Office (“OPSO”), was charged today in a one-count Bill of Information with conspiracy to commit wire fraud.
According to the Bill of Information, beginning in 2009 and continuing until January 2014, AUSTIN and others participated in a conspiracy to commit wire fraud. The Bill of Information alleges that AUSTIN, in his role as a Colonel in the Orleans Parish Sheriff’s Office, arranged for security details through a private company (Austin Sales and Service) for local entities and events, including Mardi Gras Krewes, music and food festivals, and sporting events, engaged in a scheme to defraud those local entities and events by padding the billing documents with names of individuals who did not in fact provide any security services (“Ghost Employees”).
Additionally, after submitting the fraudulently inflated invoices via interstate wires, AUSTIN kept a portion of the overbilled amount in the Austin Sales and Service corporate bank account for his own personal use. In some instances, AUSTIN drafted Austin Sales and Service corporate checks made payable to the Ghost Employees who did not work and then fraudulently endorsed those checks and deposited them into his personal bank account for his own personal use. AUSTIN often also drafted checks made payable to other OPSO employee(s)’ family members under the fraudulent guise of payments for detail work that in fact did not take place as those employee(s)’ share of the fraudulently collected funds.
If convicted of conspiring with others to commit wire fraud, AUSTIN faces statutory penalties of up to five years in prison, a $250,000 fine and three years of supervised release.
The Bill of Information also contains Notice of Forfeiture which puts the defendant on notice that the Government intends on forfeiting any and all property and profits concerned with and/or derived from any illegal activity referenced in the bill of information.
U. S. Attorney Polite reiterated that the Bill of Information describes allegations and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter and would also like to acknowledge the assistance provided by the Louisiana Legislative Auditors. Assistant U.S. Attorney Sean Toomey is in charge of the prosecution.
U.S. Marshals Service National Operation Nets More Than 8,000 FugitivesRead the Press Release
NEW ORLEANS – For the second consecutive year, the U.S. Marshals Service conducted a high-impact national fugitive apprehension initiative focusing on the country’s most violent offenders. This six-week initiative, called Operation Violence Reduction12 (Operation VR12), was conducted between February 1 and March 11. While Operation VR12 was conducted nationwide in all 94 federal judicial districts, U.S. Marshals focused special attention on 12 selected locations, designated as priority cities by the U.S. Department of Justice: Baltimore, Maryland; Brooklyn, New York; Camden, New Jersey; Chicago, Illinois; Compton, California; Fresno, California; Gary, Indiana; Milwaukee, Wisconsin; Oakland, California; Savannah, Georgia; Washington, D.C.; and New Orleans, LA.
The U.S. Marshals Service used its multi-jurisdictional investigative authority and fugitive task force nationwide network to arrest more than 648 gang members and others wanted on criminal charges including 559 for homicide and 946 for sexual offenses. Investigators seized 463 firearms, $390,360 in currency, more than 71 kilograms of illegal narcotics and recovered 17 children who had been abducted and reported missing.
“We applied a strategically focused approach to locate and apprehend the nation’s most dangerous fugitives. By removing these violent offenders from the streets, the communities they preyed upon can immediately feel more secure.” said U.S. Marshals Service Deputy Director David Harlow. “Operation VR12 was about using our expertise and law enforcement partnerships to significantly impact our communities by focusing on the worst of the worst violent criminals.”
Locally, the operation in the Eastern District of Louisiana resulted in the arrest of 151 fugitives, gang members, sex offenders and violent criminals who met the OVR12 operational criteria. This closed 211 warrants, including 40 for Homicide, 35 for Robbery, 27 Sex Offenses and 19 Weapons Violations. “The success of this Operation is a testimony to the strength and determination of our law enforcement partnerships,” said Genny May, the United States Marshal for the Eastern District of Louisiana. She continued that “We want the public to know that this task force has the support of every local, state and federal agency in this region. We will continue to work together to take dangerous, violent offenders off the streets to ensure the safety and security of this community.”
The agencies who participated in OVR12 and the USMS Task Force are New Orleans Police Department, Jefferson Parish Sheriff’s Office, Orleans Parish Sheriff’s Office, St Charles Parish Office, St John Parish Sheriff’s Office, St Bernard Parish Sheriff’s Office, Plaquemine Parish Sheriff’s Office, Slidell Police Department, Kenner Police Department, Louisiana Probation and Parole, Louisiana State Police, Housing Authority of New Orleans, Washington Parish Sheriff’s Office, U.S. Border Patrol, Department of Homeland Security Office of Inspector General, Department of Homeland Security/Immigration and Customs Enforcement, Federal Bureau of Investigation, Alcohol, Tobacco, Firearms and Explosives, New Orleans Emergency Medical Services, and Crimestoppers.
Some notable arrests in the Eastern District of Louisiana include:
On February 29th, 2015, Lionel Trumble escaped form the Orleans Parish Sheriff’s Office custody after attending a hearing in Municipal Court. After significant media coverage many hours of investigative work, task force officers developed information that Trumble was hiding in a residence located in the 2400 block of Milan Street in New Orleans. Trumble was arrested without incident on March 9th, 2016, still wearing the leg irons from his court appearance.
Dave Turner was wanted by St. Charles Sheriff’s Office for attempted first degree murder, first degree rape and second degree kidnapping. On February 1st, Turner forced entry into a residence where he assaulted and strangled the victim, causing her to lose consciousness. He then kidnapped the victim, forcing her into his vehicle. While driving, the victim unsuccessfully tried to escape, resulting in Turner opening the passenger side door and pushing her out of the moving vehicle. Turner was arrested without incident in New Orleans, LA, on February 2nd by the U.S. Marshals Task Force.
Michael and Terrell Monroe Michael and Terrell Monroe were wanted by the New Orleans Police Department for the November 25th, 2015 murder of Joe Dorsey, who succumbed to multiple gunshot wounds after the brazen, daylight attack on a city street. After extensive work conducted during this operation, local investigators developed information that the suspects were hiding in southwest Georgia. U.S. Marshals in Georgia arrested both Monroe brothers at separate locations on March 7th, 2016 and recovered a .40 caliber pistol, the same caliber used in the murder.
Ricky McKeel, a known member of the Harvey Hustlers street gang, allegedly assaulted a known female leading the Jefferson Parish Sheriff’s Office to charge him with Aggravated Assault with a Firearm, Felon in Possession of a Firearm and two counts of Assault. Investigative efforts led task force officers to a residence in Harvey, LA where McKeel had barricaded himself in the attic, resulting in a three hour standoff with the JPSO SWAT team until he ultimately surrendered. A subsequent search warrant uncovered a Taurus 9mm semi-automatic handgun.
“This initiative highlights the success that our law enforcement partners can have when we come together – across federal, state, and local lines – to address violent crime in our region,” stated U.S. Attorney Polite.
The concept behind interagency law enforcement operations such as Operation VR12 evolved largely from regional and district task forces. Since the 1980s, the Marshals Service has combined their resources and expertise with local, state and federal agencies to find and apprehend dangerous fugitives. Operation VR12 continued this tradition.
For more information about Operation VR12, including photographs and B-roll footage, visit www.usmarshals.gov or www.usmarshals.gov/district/la-e/index.html.
Pennsylvania Man Sentenced to Prison for Conspiracy to Smuggle Turtles out of the United StatesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN TOKOSH, age 54, from Pennsylvania, was sentenced yesterday after previously pleading guilty to conspiracy to smuggle turtles out of the United States and to violation of the Lacey Act, as well as using a fictitious name and address in a mailing.
U.S. District Judge Ivan L.R. Lemelle sentenced TOKOSH to two years in prison, followed by six years of supervised release.
According to court records, TOKOSH admitted that he was part of a group of individuals involved in capturing North American Wood turtles, which are a threatened species, from the wild in Pennsylvania, shipping the turtles by mail though the United States, and then illegally exporting the turtles to Hong Kong. TOKOSH’s role in the conspiracy was to capture the North American Wood turtles from their native habitat in Pennsylvania, where it is illegal to hunt them, and then to ship them to a middleman in Covington, Louisiana.. TOKOSH also admitted to using the alias “Jay Rockington” in an effort to disguise that he was the source of the turtles.
“This case illustrates our commitment to fighting the illegal wildlife trade. The unlawful international trade in turtles fuels an unsustainable market that will drive our wild native species to extinction,” said U.S. Fish and Wildlife Service, Special Agent in Charge Luis Santiago. “I’d like to commend investigators with the US Fish and Wildlife Service, Homeland Security Investigations, United States Postal Inspection Service, and the Department of Justice for their dedication in this investigation.”
“The trafficking of illegal goods, whether it is guns, drugs, or in this case a threatened species of wildlife, Homeland Security Investigations is focused on protecting the security of our nation’s borders and will continue to prioritize cases of illegal smuggling and trafficking,” said Raymond R. Parmer Jr., Special Agent in Charge of HSI New Orleans. "The illicit trade of wildlife is not only a financial crime, but poses health and safety issues as well through these illegal transactions that can potentially transfer disease and other threats around the world."
“The Postal Inspection Service has sought for hundreds of years those who use the Postal Service for illegal gain,” stated Inspector in Charge Christopher M. Stifflemire, U.S. Postal Inspection Service. “The ability to use the mail in a safe and secure manner is at the core of the Postal Inspection Service’s mission. When criminals use the mail to defraud, Postal Inspectors will not hesitate to ensure they are brought to justice.”
U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Louisiana Check Cashers Plead Guilty to Conspiracy, Tax Charges and Agree to Forfeit $4.12 MillionRead the Press Release
WASHINGTON – Two residents of Kenner, Louisiana, pleaded guilty today before Federal District Court Judge Lance M. Africk of the Eastern District of Louisiana for crimes related to the operation of their check cashing business, VJ Discount Inc., announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney Kenneth A. Polite for Eastern District of Louisiana.
Susantha Wijetunge, aka VJ, 52, pleaded guilty to conspiring to defraud the United States by impeding and impairing the Internal Revenue Service (IRS), to file false reports with government agencies regarding these transactions and to commit mail and wire fraud. His spouse, Manula Wijetunge, aka Manu, 48, pleaded guilty to willfully filing a false tax return. As part of their guilty pleas, the defendants and certain corporate entities they control agreed to the forfeiture of approximately $4.12 million dollars.
According to publicly filed documents, defendants Susantha Wijetunge and Manula Wijetunge owned VJ Discount Inc., a Louisiana corporation that operated a convenience store and check cashing business in Kenner. Susantha Wijetunge, VJ Discount Inc. and others cashed fraudulently obtained tax refund checks for multiple co-conspirators, for which they charged a higher fee than normal. Often, these transactions involved multiple checks and tens of thousands of dollars. In order to conceal this illegal activity, Susantha Wijetunge and others filed false reports with the government, or failed to file them as required by law.
Susantha Wijetunge also admitted to filing multiple false tax returns that underreported business and individual income to the IRS. Both Susantha Wijetunge and Manula Wijetunge admitted that VJ Discount Inc. had third party check deposits of more than $59 million in 2011; $47 million in 2012; and $66 million in 2013. Despite this large volume of business, the defendants’ individual income tax returns reported total individual income of less than $100,000 per year. Manula Wijetunge pleaded guilty to willfully filing a false 2013 individual income tax return.
Susantha Wijetunge faces a statutory maximum term of five years in prison and Manula Wijetunge faces a statutory maximum term of three years in prison. They also face fines, forfeiture, the costs of prosecution and restitution, if convicted. Sentencing is set for July 14.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorneys Hayden Brockett and David Haller and Trial Attorney Michael Hatzimichalis of the Tax Division, who are prosecuting the case.
Three Sentenced in Food Stamp Fraud Scheme that Defrauded the U.S. of over $1 MillionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TAYSIR MUHAMMAD, a/k/a “Tommy,” age 46, of Kenner; EUGENE TUMBS, a/k/a “Mr. G,” age 68, of New Orleans; and his daughter KATHY TUMBS, 45, also of New Orleans, were sentenced today after previously pleading guilty to a food stamp fraud scheme that defrauded the United States government of over $1,000,000 in food stamp benefits.
U.S. District Judge Sarah S. Vance sentenced MUHAMMAD to 34 months imprisonment, followed by three years of supervised release. EUGENE and KATHY TUMBS were each placed on five years of probation. The defendants were also ordered to pay a total amount of restitution of $1,080,575.40 to the U.S. Department of Agriculture.
KATHY TUMBS previously pled guilty to one count of food stamp fraud and one count of conspiracy to structure transactions. EUGENE TUMBS previously pled guilty to one count of food stamp fraud, one count of wire fraud, and one count of conspiracy to structure transactions. MUHAMMAD previously pled guilty to conspiracy to commit food stamp fraud and wire fraud, food stamp fraud, wire fraud, conspiracy to structure transactions, and conspiracy to commit money laundering.
According to court documents, the defendants operated a corner store at the intersection of Frenchmen and North Derbigny Streets in New Orleans. The store, called the Frenchmen Meat Market, participated in Supplemental Nutrition Assistance Program (“SNAP”), which is operated by the U.S. Department of Agriculture. The SNAP program provides food stamps to individuals who can then present those food stamps in exchange for eligible food products at participating vendors using the electronic benefits transfer (“EBT”) system to complete the transaction. The defendants, however, permitted customers to use food stamps for ineligible products and for cash. In exchange for this service, the defendants would charge customers a fee that was derived from the fraudulent food stamp transaction. The defendants would then transfer funds from the store’s bank account into separate bank accounts by structuring transactions to willfully avoid currency transaction reporting requirements. Using this scheme, from April 2012 through May 2014, the defendants defrauded the government of over $1,000,000 in food stamp benefits.
U.S. Attorney Polite praised the work of the Department of Agriculture’s Office of Inspector General and the Bureau of Alcohol, Tobacco, Firearms and Explosives, in coordination with the Orleans Parish District Attorney’s Office and the Louisiana Office of Alcohol and Tobacco Control in investigating this matter. Assistant United States Attorney Matthew Payne was in charge of the prosecution.
Mandeville Postal Worker Sentenced for TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANGELA MITCHELL, age 40, of Mandeville, was sentenced today for Theft of Mail.
U.S. District Court Judge Susie Morgan sentenced MITCHELL to two years’ probation and ordered MITCHELL to pay restitution in the amount of $4,050.90.
According to court records, as a result of a complaint from the Postmaster of the
Mandeville Post Office, the Office of Inspector General for the United States Postal Service (“Postal OIG”) initiated an investigation into MITCHELL, an employee of the Postal Service assigned to the Mandeville Post Office. It was determined that MITCHELL had stolen a credit card from a post office box and used the stolen card on three occasions without authorization, resulting in approximately $460 in fraudulent charges. Additionally, investigators determined that MITCHELL had embezzled $3,591 from the Post Office.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service, Office of Inspector General. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
Houma Interpreter SentencedRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TRINA MARIE BOURG, age 45, of Houma, was sentenced today after previously pleading guilty to five counts of a Superseding Indictment for crimes involving the solicitation of illegal payments from undocumented clients and their family members.
United States District Judge Susie Morgan sentenced BOURG to four years probation and ordered restitution in the amount of $5,500 to the victims.
According to court records, on May 7, 2014, the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”) received information that BOURG, who worked as a Spanish language interpreter contract employee for the Office of the District Defender for the 32nd Judicial District for Terrebonne Parish (“Public Defender’s Office”), was soliciting illegal payments from undocumented clients. According to court records, BOURG, while providing Spanish interpreting services for attorneys employed by the Public Defender’s Office, identified clients facing criminal charges who were subject to potential removal from the United States. BOURG then initiated contact with the client, or the client’s family, outside of the presence or knowledge of their court appointed attorney and falsely represented to the client or the client’s family that for a certain amount of money, she could bribe federal immigration officials not to seek federal prosecution or initiate removal proceedings against the client. BOURG charged the client, or the client’s family, approximately $2,000 to $4,000 and said she would use the money to pay federal immigration officials in order to secure the client’s release from immigration custody. The defendant pled guilty to knowingly devising a scheme and artifice to defraud undocumented Hispanic aliens and through false material misrepresentation was able to accomplish her scheme through lies, misrepresentations, coercion, and threats.
In 2011 and again in 2014, BOURG solicited illegal payments totaling $5,000 from Client “A” and his family members. BOURG admitted to employing threats and intimidation to coerce the family members into paying BOURG.
It is important to note that no federal immigration officials have been implicated in this investigation, nor is it believed that any federal officials were complicit in BOURG’s crimes. BOURG was originally indicted in August 2014.
U.S. Attorney Polite praised the work of the U. S. Department of Homeland Security-HSI (McAllen, TX and Houma, LA offices), the Louisiana State Police-Criminal Investigation Division, and the Terrebonne Parish Sheriff’s Office in investigating this matter. Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba and Assistant U.S. Attorney Marquest Meeks were in charge of the prosecution.
Guatemalan National Sentenced for his Role in $10 Million Tax Fraud ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CARLOS HUMBERTO FUENTES CORDON, 36, a Guatemalan national, was sentenced today for conspiracy to defraud the United States by filing false tax returns.
U.S. District Court Judge Susie Morgan sentenced FUENTES CORDON to 24 months in prison, one year of supervised release, and ordered him to pay restitution in the amount of $393,031 to the United States. In November 2014, FUENTES CORDON’s sister, JACQUELINE J. ARIAS, a tax return preparer from Spruce Pine, Alabama was sentenced to serve 97 months in prison for her role in the scheme and ordered to pay more than $10,000,000 in restitution.
On February 11, 2015, FUENTES CORDON pleaded guilty to one count of conspiracy to defraud the United States. According to court documents, FUENTES CORDON and his co-conspirators filed false returns listing Individual Taxpayer Identification Numbers (ITINs). An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who do not have, and are not eligible to obtain, a Social Security Number. The indictment charged that ARIAS filed false applications for ITINs, false income tax returns, and collected preparation fees from the fraudulently-obtained tax refunds. As alleged in the superseding indictment, FUENTES CORDON worked at ARIAS’s income tax preparation business when he was present in the United States, filing false income tax returns listing a Post Office Box under his control.
To date, seventeen defendants have pleaded guilty in the case and four remain fugitives believed to be overseas. All of the defendants in this case who pleaded guilty thus far were sentenced to terms of imprisonment, including OLSEN SARAVIA HERNANDEZ (43 months); CESAR ALEJANDRO SORIANO (42 months); OSCAR ARMANDO PERDOMO (42 months); YONI PERDOMO (38 months); ARNULFO SANTOS-MEDRADO, (38 months); ELSIDES EDGARDO ALVARADO-CANALES (36 months); ELIECER OBED RODRIGUEZ (34 months); OCTAVIO JOSUE PERDOMO (34 months); ELBER MENDOZA-LOPEZ (34 months); AURELIO MONTIEL-MARTINEZ (24 months); MILLER PERDOMO-ACEITUNO (24 months); SANTOS MARTIN HERNANDEZ, (24 months); and SUSANA CARILLO MENDOZA (19 months).
U.S. Attorney Polite praised the work of the U.S. Immigration and Customs Enforcement, which oversees U.S. Homeland Security Investigations; IRS-Criminal Investigation; the U.S. Secret Service; the U.S. Postal Inspection Service; and the Social Security Administration, Office of the Inspector General, in partnership with the St. Tammany Parish and Jefferson Parish Sheriffs’ Departments in investigating this matter. Assistant United States Attorneys Hayden Brockett and Assistant United States Attorney David Haller were in charge of the prosecution.
Former Saints Player Enters New Guilty Plea to Drug Distribution ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARREN SHARPER, age 40, formerly of New Orleans, entered a new guilty plea today before U.S. District Judge Jane Triche Milazzo, to Conspiracy to Distribute Alprazolam, Diazepam and Zolpidem with intent to commit rape and two counts of distributing these substances with intent to commit rape. The maximum punishments for these offenses are as follows:
COUNT
CHARGE
MAXIMUM
PENALTIES
4
21 U.S.C. 846; Conspiracy to Distribute a Schedule IV Controlled Substance with the intent to commit a crime of violence
20 Years, $250,000 Fine, NLT 1 Year Supervised Release.
5
21 U.S.C. 841(a)(1),(b)(1)(D) & (E)(7)(B); Distribution of a Controlled Substance, Schedule IV with the intent to commit a crime of violence
20 Years, $250,000 Fine, NLT 1 Year Supervised Release.
6
21 U.S.C. 841(a)(1),(b)(1)(D) & (E)(7)(B); Distribution of a Controlled Substance, Schedule IV with the intent to commit a crime of violence
20 Years, $250,000 Fine, NLT 1 Year Supervised Release.
SHARPER is a former member of the New Orleans Saints and is presently in custody. He has previously pled guilty to similar charges in Los Angeles, Phoenix, and Las Vegas. He has also entered into a conditional plea in Orleans Parish Criminal District Court. His plea today was part of a global resolution of the charges against him. According to court records, SHARPER admitted that he and others distributed controlled substances to unsuspecting women and then had sexual relations with them while they were incapacitated. He also admitted that he conspired with other persons in committing these offenses.
Under the terms of this new plea agreement, the United States and SHARPER jointly agreed to recommend to the court a sentence within SHARPER’s Sentencing Guidelines range, which is 188-235 months as calculated by the United States Probation Office. Sentencing in this matter is set for June 16, 2016, at 9:00 AM.
Co-defendants Brandon Licciardi, a former St Bernard Sheriff’s Deputy, and Erik Nunez are awaiting trial on similar charges as well as charges of Witness Tampering and Impeding an Official Proceeding.
U.S. Attorney Polite thanked the victims for their courage and willingness to come forward.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter and thanked Leon Cannizzaro and the Orleans Parish District Attorney’s Office for their invaluable assistance. The Los Angeles County District Attorney’s Office also assisted in this case. Assistant United States Attorneys Michael E. McMahon, Theodore Carter, and Brandon Long are in charge of the prosecution.
Pearl River Man Indicted for Illegal Possession of FirearmsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STEVEN LONG, age 30, of Pearl River, was indicted today for illegally possessing five firearms in his home on March 10, 2016, after having previously been convicted of three narcotics felonies in St. Tammany Parish.
LONG faces a maximum sentence of ten years in prison, a $250,000 fine, and three years of supervised release if convicted.
The Indictment is a product of an ongoing investigation by the United States Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the St. Tammany Parish Sheriff’s Office.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the ATF, with assistance from the St. Tammany Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Myles Ranier is in charge of the prosecution.
New Orleans Man Charged with Illegal Possession of a FirearmRead the Press Release
U.S. Attorney Kenneth A. Polite announced today the unsealing of a one-count Indictment charging KIDUS WODAJO, age 23, of New Orleans, with being a felon in possession of a firearm.
According to the Indictment, WODAJO, who had previously been convicted of a felony in Orleans Parish Criminal District Court, possessed a Taurus Millennium Pro .45 caliber semiautomatic pistol in December 2013.
If convicted, WODAJO faces a maximum term of imprisonment of ten years, a fine of $250,000 and three years of supervised release following any term of imprisonment.
U.S. Attorney Polite reiterated that the Indictment is merely an allegation and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih and Trial Attorney Joseph K. Wheatley, of the Department of Justice, Organized Crime and Gang Section, are in charge of the prosecution.
New Orleans Jury Convicts Company Owner and Doctor for Roles in $34 Million Fraud SchemeRead the Press Release
WASHINGTON – A federal jury in New Orleans convicted the owner of a health care company and a doctor for their roles in a $34 million Medicare fraud scheme that operated over the course of seven years in New Orleans and surrounding communities.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office made the announcement.
Elaine Davis, 59, and Dr. Pramela Ganji, 66, both of New Orleans, were each convicted of one count of conspiracy to commit health care fraud and one count of health care fraud late yesterday after an eight-day trial before Chief U.S. Judge Kurt D. Englehardt of the Eastern District of Louisiana. Davis and Ganji will be sentenced on July 6, 2016.
Evidence introduced at trial showed that Davis owned and controlled the operations of Christian Home Health Care Inc., and Davis and Ganji caused Christian to bill Medicare for home health care services that were not needed and/or were not provided. In her role, Davis paid employees to recruit new patients from communities in and around New Orleans and Hammond, Louisiana. Christian then sent the new patients’ Medicare information to doctors, including Ganji, to obtain their signatures to certify that the patients qualified to receive home health care services, which trial evidence showed they did not qualify for or need. Trial evidence showed that Ganji had often never seen these patients and these false certifications allowed Davis and Christian to bill Medicare for home health services and to conceal that the services were unnecessary. Evidence introduced at trial showed that from 2007 through June 2015, Christian submitted more than $34.4 million in claims to Medicare, a large number of which were fraudulent. Medicare paid Christian approximately $29.6 million on these claims.
Davis was found not guilty of three additional counts of health care fraud and Ganji was found not guilty of one additional count of health care fraud. Dr. Godwin Ogbuokiri was acquitted of all charges.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana. Trial Attorneys William Kanellis, Antonio Pozos and Drew Bradylyons of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
New Orleans Jury Convicts Company Owner and Doctor for Roles in $34 Million Fraud SchemeRead the Press Release
A federal jury in New Orleans convicted the owner of a health care company and a doctor for their roles in a $34 million Medicare fraud scheme that operated over the course of seven years in New Orleans and surrounding communities.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office made the announcement.
Elaine Davis, 59, and Dr. Pramela Ganji, 66, both of New Orleans, were each convicted of one count of conspiracy to commit health care fraud and one count of health care fraud late yesterday after an eight-day trial before Chief U.S. Judge Kurt D. Englehardt of the Eastern District of Louisiana. Davis and Ganji will be sentenced on July 6, 2016.
Evidence introduced at trial showed that Davis owned and controlled the operations of Christian Home Health Care Inc., and Davis and Ganji caused Christian to bill Medicare for home health care services that were not needed and/or were not provided. In her role, Davis paid employees to recruit new patients from communities in and around New Orleans and Hammond, Louisiana. Christian then sent the new patients’ Medicare information to doctors, including Ganji, to obtain their signatures to certify that the patients qualified to receive home health care services, which trial evidence showed they did not qualify for or need. Trial evidence showed that Ganji had often never seen these patients and these false certifications allowed Davis and Christian to bill Medicare for home health services and to conceal that the services were unnecessary. Evidence introduced at trial showed that from 2007 through June 2015, Christian submitted more than $34.4 million in claims to Medicare, a large number of which were fraudulent. Medicare paid Christian approximately $29.6 million on these claims.
Davis was found not guilty of three additional counts of health care fraud and Ganji was found not guilty of one additional count of health care fraud. Dr. Godwin Ogbuokiri was acquitted of all charges.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana. Trial Attorneys William Kanellis, Antonio Pozos and Drew Bradylyons of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Man Pleads Guilty to Attempting to Rob U.S. Postal OfficeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROBERT WARREN, age 74, no known residence, pled guilty as charged yesterday to an Indictment charging one count of attempting to rob a United States Postal Office and one count of interference with postal employees.
According to court records, WARREN entered the Postal Office located at 701 Loyola Avenue, New Orleans, handed a handwritten note to a teller, and demanded a quantity of money. WARREN was quickly arrested by investigators for the United States Postal Inspection Service.
WARREN faces a sentence of imprisonment of up to ten years for the attempted robbery charge and up to eight years for the interference with postal employees charge. U.S. District Judge Eldon E. Fallon scheduled sentencing for June 23, 2016.
U.S. Attorney Polite praised the work of the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
El Salvadoran National Sentenced for False Claim to U.S. CitizenshipRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MIGUEL MENDEZ-GUSMAN, age 36, a citizen of El Salvador, was sentenced today after previously pleading guilty to a one-count Indictment for false claim to United States Citizenship.
U.S. District Judge Jane Triche Milazzo sentenced MENDEZ-GUSMAN to six months imprisonment and a $100 special assessment. Following his term of imprisonment, MENDEZ-GUSMAN will be surrendered to the custody of U.S. Immigration and Customs Enforcement for removal proceedings.
According to the Indictment, on or about July 28, 2015, MENDEZ-GUSMAN falsely and willfully represented himself to be a citizen of the United States.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Des Allemands Man Sentenced for Fraud in Aftermath of BP Oil SpillRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Louisiana announced that DERRICK JOSEPH DURAN, age 28, a resident of Des Allemands, was sentenced today after previously pleading guilty to a three-count mail fraud Indictment.
U.S. District Judge Jane Triche Milazzo sentenced DURAN to serve four years on probation and ordered restitution in the amount of $28,018.52.
According to court documents, the Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion that occurred on April 20, 2010. The GCCF required individuals to verify loss of income. On August 25, 2010, DURAN submitted a fraudulent application to the GCCF claiming that he worked as a deckhand on a fishing vessel during the year 2010, before the oil spill. Documentation in support of DURAN’s claim included a falsified letter from a commercial fisherman indicating that DURAN had worked as a deckhand on his fishing vessel for a twelve month period before the spill, when in fact he had not. Based on DURAN’s fraudulent application, the GCCF mailed checks totaling $28,018.52 to DURAN to which he was not entitled.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
The U.S. Attorney’s Office praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
New Orleans Musician “Big Freedia” Pleads Guilty to Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FREDDIE ROSS, JR., age 38, of New Orleans, who performs under the stage name BIG FREEDIA, pled guilty today to theft of government funds.
According to court documents, the United States Department of Housing and Urban Development, a department of the United States, provided federal funds to local public housing authorities to assist low income citizens with private market rental payments, including utility payments, through a tenant-based voucher program known as the Housing Choice Voucher Program, or “Section 8” Program. The Section 8 program was created to subsidize the rents of the very poor, the elderly, and the disabled by allowing families to choose privately owned rental housing and subsidizing the majority of the fair market rent. Program participants paid part of their rents—an amount equal to thirty percent of the household's income—and the federal government directly pays the landlords the remainder. The eligibility for Section 8 benefits and the amount of the voucher subsidy were determined by, among other things, the household income of the applicant and the number of people in the household. In New Orleans, this amounted to not more than $21,700 per year.
ROSS first applied for Section 8 benefits in March 2009. He listed his monthly income as between $100 and $1,000, and he disclosed no additional assets on his application. As a result of these representations, ROSS was accepted into the program and began receiving approximately $521 per month for his rental of a residence in New Orleans.
Thereafter, ROSS submitted recertification documents to HANO on a yearly basis through 2014. HANO relied on ROSS’s representations in the documents to determine whether he continued to qualify for Section 8 benefits. In his yearly recertification forms, ROSS falsely listed his annual income to be as follows: $0 (2011), $14,400 (2012), $12,000, plus a one-time $2,000 gift from his father (2013), and $12,000 (2014). ROSS also listed his assets to be as follows: $0 (2011), $100 (2012), $165 (2013), $250 (2014).
In fact, ROSS derived considerable income through his entertainment and music businesses, including payments for performing concerts, starring in television programs, royalties, and the sale of merchandise bearing his likeness. ROSS failed to disclose this income to HANO, as well as the existence of multiple bank accounts under his name and the name of his several corporate entities. ROSS’s statements about the amount of his assets constituted material misrepresentations upon which HANO representatives relied to determine his eligibility to receive Section 8 benefits. ROSS’s true income, had he reported it accurately, would have disqualified him from receiving Section 8 benefits in each year between 2010 and 2014. In total, as a result of the false representations ROSS made to HANO, he fraudulently received the benefit of Section 8 funds to rent the residences in New Orleans totaling approximately $34,849.00 between about January 2010 and November 2014.
ROSS faces a maximum term of imprisonment of not more than ten years in prison, followed by up to three years of supervised release, and a $250,000 fine. U.S. District Judge Lance M. Africk set sentencing for June 16, 2016.
U.S. Attorney Polite praised the work of the United States Department of Housing and Urban Development – Office of the Inspector General and the Federal Bureau of Investigation, with assistance from the Housing Authority of New Orleans in investigating this matter. U.S. Attorney Polite also praised the work of Assistant United States Attorneys Jordan Ginsberg, Maria Carboni, and Forensic Analyst Josephine Beninati, CPA, CFE, who was responsible for identifying the true sources and amount of ROSS’s income.
Chalmette Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARQUIS JOHNSON, age 32, of Chalmette, pled guilty today to an indictment charging him with four violations of the Federal Controlled Substances Act.
According to court records, JOHNSON conspired with others to possess with the intent to distribute and to distribute a quantity of a mixture or substance containing a detectable amount of heroin, a Schedule I drug controlled substance and a substance containing a detectable amount of cocaine base, a Scheduled II drug controlled substance. In addition to the conspiracy, JOHNSON pled guilty to three substantive distributions of heroin or cocaine base.
On each of the charges, JOHNSON faces a sentence of up to twenty years imprisonment and/or a fine of $1,000,000, a three year term of supervised release following any term of imprisonment, and a mandatory $100 special assessment. U.S. District Judge Susie Morgan set sentencing on June 15, 2016.
U.S. Attorney Polite praised the work of the Special Agents of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.