Middle District of Louisiana
Press releases recorded for this federal judicial district.
Baton Rouge Man Convicted in Federal Court of Illegally Possessing a FirearmRead the Press Release
United States Attorney Brandon J. Fremin announced today that RAUL BURDEN, a 27-year old resident of Baton Rouge, Louisiana, has been convicted of possession of a firearm by a convicted felon. As a result of his conviction, BURDEN now faces a maximum sentence of ten years in federal prison, significant fines and a period of supervised release.
In a hearing before U.S. District Court Judge Brian Jackson on May 28, 2019, BURDEN pled guilty to possessing a Charter Arms “Off Duty” .38 special caliber revolver. BURDEN had previously been convicted of three felony offenses, including intimidating, impeding or injuring witnesses in 2009 and simple robbery in 2011 in East Baton Rouge Parish.
On December 24, 2018, EMS dispatchers received three 911 calls reporting shots being fired outside of an apartment complex located on Manson Drive in Baton Rouge. East Baton Rouge Parish Sheriff’s deputies responded to the scene. Upon arrival, deputies identified BURDEN from the emergency calls and ordered him to remove his hands from his pockets and place them on his head. BURDEN did not comply. When deputies again ordered BURDEN to remove his hands, he threw the firearm away from himself. The firearm was recovered at the scene.
U.S. Attorney Fremin stated, “I want to commend those law enforcement officers who responded to a 911 call involving shots being fired. This case highlights yet another example of the danger faced by law enforcement and the uncertainty that comes with every dispatch. Their brave and rapid intervention prevented a potentially dangerous outcome and led to the conviction of a violent felon who was illegally possessing a firearm. I want to thank our prosecutors and our federal and local partners for their outstanding work in obtaining this conviction.”
“ATF, along with our local law enforcement partners, will continue to focus our efforts on removing armed violent criminals from our streets,” said ATF New Orleans Field Division Acting Special Agent in Charge Kristen deTineo. “ATF and our partners remain committed to ensuring that our communities are safer and more secure as a direct result of our investigations."
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Baton Rouge Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Kristen Craig.
Baton Rouge Doctor Sentenced to Prison for Fraudulent Billing SchemeRead the Press Release
A Baton Rouge, Louisiana-based doctor was sentenced to 37 months in prison followed by two years of supervised release today for his role in a scheme to defraud Medicare and other health care insurers.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office and Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office made the announcement.
John Eastham Clark, M.D., 66, of Baton Rouge, was sentenced by Chief U.S. District Judge Shelly D. Dick of the Middle District of Louisiana, who also ordered Clark to pay $254,962.80 in restitution. In February 2019, Clark pleaded guilty to one count of conspiracy to commit health care fraud.
Clark was a co-owner and the medical director of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge. The charge stems from Clark’s role in a scheme to submit fraudulent claims to Medicare and other health care insurers. As part of his guilty plea, Clark admitted that from approximately June 2005 through March 2015, he, along with his billing supervisor Charlene Anita Severio and others, conspired to submit fraudulent claims indicating that minor surgical procedures occurred on days subsequent to office visits, when in fact the office visits and procedures took place on the same day. Clark admitted that this practice, commonly referred to as “unbundling,” was done to defraud health care insurers for non-reimbursable office visits. Clark further admitted to falsifying, and directing Severio and others to falsify, records substantiating the fraudulent claims.
In February 2019, Severio pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud and two counts of health care fraud. She is scheduled to be sentenced on May 22 by Chief Judge Dick.
In another case involving Louisiana Spine & Sports, on Nov. 20, 2018, Gray Wesley Barrow, M.D., a co-owner of the company, pleaded guilty for his role in a scheme to receive approximately $336,000 in illegal health care kickback payments. Barrow is scheduled to be sentenced on June 7, 2019, by U.S. District Judge Brian A. Jackson of the Middle District of Louisiana. In addition, Christopher William Armstrong, a former physician’s assistant at Louisiana Spine & Sports, pleaded guilty on Nov. 27, 2018 for his role in a scheme to unlawfully distribute thousands of oxycodone pills. Armstrong is scheduled to be sentenced on June 24, 2019, by U.S. District Judge John W. deGravelles of the Middle District of Louisiana.
The case was investigated by HHS-OIG and the FBI, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the Middle District of Louisiana are prosecuting the case.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Felon in Possession of a Firearm Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelley D. Dick sentenced LESTER DESMOULIN, a 32-year-old resident of Baton Rouge, to 96 months in federal prison following his conviction for possessing a firearm by a convicted felon. The Court further sentenced DESMOULIN to 3 years of supervised release following his term of imprisonment, and ordered that the firearm possessed by DESMOULIN be forfeited.
On July 31, 2017, DESMOULIN, who was previously convicted of a felony, took a phone call from his friend, Terrance Thornton, after Thornton had been arrested on several fugitive warrants. During the call, Thornton advised DESMOULIN that during an earlier chase by police, he had successfully hidden his Glock pistol in the backyard of a residence in Baton Rouge, Louisiana, before his arrest. At Thornton’s request, DESMOULIN went to the residence and took possession of the firearm. On August 1, 2017, law enforcement officers executed a search warrant at an apartment that DESMOULIN shared with Thornton in Baton Rouge, Louisiana, and, among other things, the Glock pistol was recovered. In October 2018, Thornton was sentenced to a term of 120 months in federal prison for being a convicted felon in possession of the Glock and a 7.62mm semi-automatic rifle.
U.S. Attorney Fremin stated, “DESMOULIN’s sentence to 8 years in prison is another stern sentence imposed in our efforts to combat violent crime. It highlights the continuing success of our joint Federal, State, and local law enforcement effort to ensure the safety of our community. It also highlights our effort to convince repeat offenders, such as DESMOULIN, to return to life as a contributing member of society or face the consequence of a significant term of imprisonment.”
“ATF, along with our federal, state, and local law enforcement partners will continue to focus our efforts on removing armed violent criminals from our streets,” said ATF New Orleans Field Division Acting Special Agent in Charge Kristen deTineo." ATF and our partners remain committed to pursuing and bringing to justice those who seek to disrupt communities and harm law abiding citizens.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department, with substantial assistance from the Louisiana State Police Crime Laboratory and Fugitive Task Force. The case was prosecuted by Assistant United States Attorney Paul L. Pugliese.
Two Violent Gunmen Sentenced to Federal PrisonRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that District Judge Lance Africk sentenced TIMMY SCOTT a/k/a “TIMOTHY SCOTT,” a 24-year-old resident of Baton Rouge, Louisiana, and KADEEM BURDEN, a 23-year-old resident of Baton Rouge, Louisiana, to 120 months each in federal prison following their conviction of possessing a firearm by a convicted felon. The Court further sentenced SCOTT and BURDEN to 3 years of supervised release following their term of imprisonment and ordered that the firearms be forfeited.
On February 26, 2019, after a two day trial before visiting U.S. District Judge Lance M. Africk, a jury unanimously convicted SCOTT and BURDEN. As the evidence at trial demonstrated, on October 2, 2017, SCOTT and BURDEN initiated a shooting on Iroquois Street that was witnessed by a Baton Rouge City Police officer, who pursued SCOTT and BURDEN into a residential area. A K-9 team assisted and found two firearms discarded under a house, a 7.62 caliber Century Arms semi-automatic AK rifle style pistol, and a 9mm Smith and Wesson pistol. Also recovered were two Halloween style masks and two cellular phones. Forensic testing by Louisiana State Police Crime Lab and a Pittsburgh, PA., private laboratory positively matched SCOTT to DNA recovered from one of the masks and matched BURDEN’s DNA to the trigger and grip of the AK rifle style pistol. The Louisiana State Police Crime Lab was also able to match the fired 9mm cartridges recovered from the shooting location to the recovered pistol. The BATF and FBI executed search warrants on the phones and linked them to SCOTT.
U.S. Attorney Fremin stated, “The defendants’ actions of possessing illegal firearms and shooting in a residential area earned each defendant a maximum 10 year sentence. My office and our prosecutors stand ready to enforce our nation’s gun laws and continue to pursue the most violent and dangerous offenders in our community.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Baton Rouge City Police, the Federal Bureau of Investigation and the Louisiana State Police Crime Lab. The case is being prosecuted by Assistant United States Attorneys Lyman Thornton III and Fred Menner.
Louisiana Pharmacist Convicted of Trafficking and Dispensing Stolen HIV MedicationRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that U.S. District Judge Lance M. Africk sentenced ALVIN WATTS, III, a 37-year-old resident of Addis, Louisiana, to 108 months in federal prison for his conviction after a 2-day jury trial on a multiple count indictment. All counts involved stolen HIV medication, and included WATTS’ conspiracy to possess, transport, and traffic in the medication; trafficking and transporting the stolen medication; and receiving and possessing stolen medication.
As the evidence at trial demonstrated, WATTS was a co-owner and pharmacist of Doc-Your-Dose Pharmacy in Grosse Tete, Louisiana. In 2013, WATTS organized a scheme to purchase black market HIV pharmaceutical drugs that had been stolen from the Washington, D.C. Department of Health Pharmacy Warehouse intended for indigent HIV patients in Washington, D.C. WATTS sent two of his employees to D.C. on multiple occasions between June and September of 2013 to purchase the stolen medication and transport it back to his Louisiana pharmacy. As a result, WATTS profited approximately $640,000.00 by dispensing the stolen medication, as opposed to selling legally-obtained medication.
WATTS’ criminal conduct became known as the result of a traffic stop near Chattanooga, Tennessee, in which his couriers were stopped for speeding. During the stop, officers discovered a significant quantity of stolen HIV medication in the trunk of their vehicle. The investigation identified WATTS’ criminal conduct along with the conduct of four co-conspirators who were indicted and subsequently pled guilty for their involvement in this scheme and have been sentenced.
During today’s hearing, Judge Africk highlighted WATTS’ greed, extreme depravity in selling stolen HIV medications that were intended for indigent HIV patients in the D.C. area, and the fact that he obstructed justice in attempting to prevent a government witness from testifying.
U.S. Attorney Fremin stated, “Medical professionals like the defendant cannot be allowed to profit by dispensing stolen medication intended for indigent patients. The actions of this defendant are a great disservice to the pharmacists and medical professionals in our community who ensure that patients’ well-being is their highest priority. I commend the superb efforts of prosecutors and federal and state local law enforcement partners who played a critical role in investigating and prosecuting this complex and important matter.”
“The health of patients is jeopardized when prescription drugs are diverted from the legal supply chain. When this happens, there is no longer any assurance that the products are safe and effective for their intended uses,” said Acting Special Agent in Charge H. Peter Kuehl, FDA Office of Criminal Investigations Miami Field Office. “We will continue to investigate these types of criminal acts and bring to justice those who put the public health at risk.
“I applaud my Medicaid Fraud Control Unit and our federal law enforcement partners for their efforts to end this criminal conspiracy,” said Attorney General Landry. “We will remain steadfast in our commitment to find, arrest, and prosecute Medicaid fraudsters.”
This matter was investigated by the United States Food And Drug Administration’s Office of Criminal Investigations and Louisiana State Attorney General’s Office’s Medicaid Fraud Control Unit, with assistance from the State of Tennessee 10th Judicial District Drug & Violent Crime Task Force. The case was prosecuted by Assistant United States Attorneys Peter Smyczek and Paul Pugliese.
Florida Man Indicted for Wire Fraud and International Money Laundering in Connection with an Investment Fraud Scheme Involving Baton Rouge Area VictimsRead the Press Release
A federal grand jury recently returned a four-count indictment charging Wallace Byers, age 59, of Miami, Florida, with wire fraud and international money laundering. Byers appeared for his arraignment in court today and pled not guilty to the pending charges.
According to the indictment, Byers identified potential victims through social networking websites, commercial services that provided investor leads, and documents that identified the victims of other schemes. The indictment alleges that Byers solicited victims to invest with his company, WBI Associates, LLC, through phone calls, text messages, and email, and promised victims that the money would be invested, variously, in gold production, a lottery company, foreign currency, or “dark pools” or “blind pools.” The indictment further alleges that instead of investing the money sent to him by victims as promised, Byers spent the money on personal expenditures, including among others, approximately $10,000 per month in rent for his residence in a Miami hotel, the lease of luxury cars, including a Ferrari, and gambling in casinos. The indictment alleges that Byers received at least $6,888,000 as a result of his scheme. According to the indictment, two of Byers’ victims lived in the Middle District of Louisiana, one in Baton Rouge and one in Baker.
In addition to charging Byers with wire fraud, the indictment charges Byers with engaging in international money laundering, by sending $3,000,000 to a Swiss bank account, in order to conceal and disguise the nature, location, source, ownership and control of the proceeds of the wire fraud scheme.
U.S. Attorney Brandon J. Fremin stated, “This indictment demonstrates how con artists can prey on our citizens with persuasive lies and false documents. We remain focused on prosecuting the criminals who target our community with financial scams and abuse. Citizens always should be wary of callers who promise large financial returns, and should contact law enforcement if they believe that they have fallen victim to one of these scams. I appreciate the hard work by all those involved in this important matter.”
Eric Rommal, FBI New Orleans Special Agent in Charge, stated "The FBI will continue to aggressively pursue those who prey on our elderly citizens through investment scams and other complex financial crimes."
This matter is being investigated by the Baton Rouge Resident Agency of the Federal Bureau of Investigations, and is being prosecuted by Assistant United States Attorney Elizabeth E. White, who also serves as the Elder Justice Coordinator for the Middle District of Louisiana. The Department of Justice’s Elder Justice Initiative aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: https://www.justice.gov/elderjustice.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Major Drug Trafficker Sentenced to Federal Prison on Drug Trafficking and Gun ChargesRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced JOHNNY J. MASON, age 36, of Baton Rouge, Louisiana, was sentenced to federal prison following his convictions in Operation Hidden Fee, an extensive federal, state, and local investigation by the Middle District Organized Crime and Drug Enforcement Task Force (OCDETF) aimed at a drug trafficking network based and operating in Baton Rouge. The Indictment filed in this matter charged significant drug trafficking offenses involving heroin, methamphetamine, and crack cocaine, as well as several firearm offenses.
U.S. District Judge Brian A. Jackson sentenced MASON to a 180 month term of imprisonment following his convictions for conspiracy to distribute and to possess with the intent to distribute heroin, methamphetamine, and crack cocaine, possession with the intent to distribute methamphetamine, and possession of a firearm by a convicted felon. The Court also sentenced MASON to 5 years of supervised release following his term of imprisonment and ordered that the firearm be forfeited.
According to admissions made as part of his guilty plea, MASON was on parole for simple burglary of an inhabited dwelling and possession of cocaine when law enforcement authorities arrested him in January 2017 during an undercover investigation of a purchase MASON had arranged involving methamphetamine. Authorities searched the vehicle MASON was traveling in and seized, among other items, digital scales and four bags containing approximately 58.41 grams of methamphetamine and a Beretta .380 caliber pistol. While in parish prison, MASON recruited his co-defendant, Stacy Taylor, into the drug trafficking conspiracy and introduced her to James C. Hull, the head of a narcotics distribution ring involving 21 subordinate drug dealers who operated throughout the Baton Rouge area.
Taylor pled guilty to the conspiracy and was subsequesntly sentenced to 48 months imprisonment. Hull pled guilty to conspiracy to distribute and possession with the intent to distribute heroin, methamphetamine, and cocaine base, distribution of methamphetamine and heroin, and four counts of unlawful use of communication facilities. As a result of his conviction, Hull faces a significant term of imprisonment, a fine, and a period of supervised release.
U.S. Attorney Fremin stated, ”I want to congratulate our prosecutors and our federal, state, and local partners, whose work will ensure that this serious drug trafficker will remain behind bars for a significant period of time, and that a large drug trafficking organization is being dismantled. Keeping drugs and violence out of our communities remains a top priority of our office.”
“This is an outstanding example of law enforcement teamwork,” said DEA’s Acting Assistant Special Agent in Charge Michael Arnett. “It also shows the tenacity of our law enforcement agents who, for years, continued to pursue MASON and bring him to justice and be punished for the serious crimes he committed.”
The investigation is yet another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program, which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
These ongoing investigations were led by the Drug Enforcement Administration with invaluable assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the East Baton Rouge Parish Sheriff’s Office, the Baton Rouge City Police Department, and the Louisiana State Police. Other agencies also assisted in apprehending the defendants, including the U.S. Marshal’s Service, and the Sheriffs’ Offices in Ascension, Iberville, and West Baton Rouge Parishes. These cases are being prosecuted by Assistant U.S. Attorneys Robert Piedrahita and Lyman E. Thornton III.
DEA Prepares for Prescription Drug Take Back DayRead the Press Release
United States Attorney Brandon J. Fremin will join the DEA on April 27th for its 17th National Prescription Drug Take Back Day. The biannual event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs and will be held from 10 a.m. to 2 p.m., at thousands of collection sites around the country, including law enforcements agencies within the Middle District of Louisiana:
ASCENSION PARISH SHERIFF'S OFFICE, 828 South Irma Boulevard, Gonzales, LA 70737
BAKER POLICE DEPARTMENT, 1320 Alabama St, Baker, LA 70714
BATON ROUGE POLICE DEPARTMENT, 9000 Airline Hwy, Baton Rouge, LA 70815
EAST BATON ROUGE PARISH SHERIFF'S OFFICE, EBRSO Traffic Office, 9313 Burbank Dr, Baton Rouge, LA 70820
PLAQUEMINE POLICE DEPARTMENT, 23540 Railroad Ave, Plaquemine, LA 70764
ST. HELENA PARISH SHERIFF'S OFFICE, 53 N. 2nd Street, Greensburg, LA 70441
WALKER POLICE DEPARTMENT, 828 South Irma Boulevard, Gonzales, LA 70737
WEST FELICIANA PARISH SHERIFF'S OFFICE, FRED'S PHARMACY, 7130 US-61, St Francisville, LA 70775
U.S. Attorney Fremin stated, “Despite our best intentions, our medicine cabinets can quickly become overstocked and, in some situations, can provide a pathway to addiction. This program provides ordinary citizens an excellent opportunity to anonymously and properly dispose of unwanted prescription drugs with no questions asked. Every effort to prevent drugs from being used illegally is another step toward winning the battle against addiction and abuse.”
DEA Special Agent in Charge Brad Byerley said, “Prescription drug abuse has become the nation’s fastest growing drug epidemic. Last year, more Americans died from opioid overdoses than from all other drugs combined, including meth, cocaine and hallucinogens. Unfortunately, these prescription drugs are most often obtained from friends and family, who leave them in home medicine cabinets. DEA’s Take-Back initiative provides citizens an easy and safe way to dispose of unwanted prescription drugs. Please do your part to keep prescription drugs off the streets and help spread awareness in your community.”
Last October Americans turned in 457 tons (900,000 pounds) of prescription drugs at almost 6,000 sites operated by the DEA and more than 4,800 of its state and local law enforcement partners. Overall, in its 16 previous Take Back events, DEA and its partners have taken in over 11 million pounds—more than 5,400 tons—of pills. The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps, only pills or patches.)
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.
Major Drug Trafficker Sentenced to Federal Prison on Drug Trafficking and Gun ChargesRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced Oscar Arturo Machado-Galeana, age 36, of Baton Rouge, Louisiana, to 300 months in federal prison following his convictions after a nine-day jury trial in October 2018 for conspiracy to distribute methamphetamine, heroin, and marijuana; conspiracy to launder monetary instruments; distribution of methamphetamine; possession with intent to distribute methamphetamine and marijuana; and possession of a firearm in furtherance of a drug trafficking crime. The Court also sentenced MACHADO-GALEANA to 5 years of supervised release following his term of imprisonment and ordered that the firearm be forfeited. Co-defendant Roy Martin Herrara-Romero, who was convicted of possession with intent to distribute marijuana, was sentenced to 60 months on March 14, 2019.
As the evidence at trial demonstrated, MACHADO-GALEANA obtained pounds of methamphetamine as well as a quantity of heroin from a source operating in Lafayette, Louisiana, as well as pounds of marijuana from a source in northern California. MACHADO-GALEANA, with the assistance of Alexander P. Nava, distributed methamphetamine, heroin, and marijuana to various dealers in the Baton Rouge and Laplace, Louisiana areas. MACHADO-GALEANA used a nominee to purchase cashier’s checks and forward those to his marijuana supplier in California. In some instances, Nava and MACHADO-GALEANA carried firearms with them when delivering methamphetamine to dealers and picking up the payments for those controlled substances. On March 18, 2015, during the execution of a search warrant at a storage unit at 13822 Florida Blvd., Baton Rouge, LA, law enforcement officers seized approximately 18 pounds of high-grade methamphetamine. Law enforcement agents also executed a search warrant that day at Herrara-Romero’s nearby residence at 13822 Florida Blvd., Baton Rouge, Louisiana, where they found triple beam and digital scales, a. 45 caliber semi-automatic pistol, and an amount of marijuana. That same morning, officers executed a search warrant at MACHADO-GALEANA’s residence in Baton Rouge, Louisiana, where they seized a number of firearms, methamphetamine, and marijuana.
U.S. Attorney Fremin stated, “Evidence at trial demonstrated Mr. Machado had connections to a drug cartel in Sinaloa, Mexico. This conviction and sentence is yet another demonstration of our commitment to making our communities safer by combatting violent drug trafficking organizations. I am grateful to our prosecutors and to our federal, state, and local partners for their outstanding efforts and for removing this dangerous dealer, and his poisonous drugs from our streets. We will continue to work tirelessly to seek justice on behalf of the American people.”
“DEA will continue to attack the scourge of illegal drug distribution in Baton Rouge and beyond,” said DEA Acting Assistant Special Agent in Charge Michael Arnett. “The lengthy sentencing of this defendant should be taken as a message to those who want to sell drugs. We are going to catch you and put you in prison for a long time if you distribute this poison in our communities. ”
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the East Baton Rouge Parish Sheriff’s Office, the Internal Revenue Service-Criminal Investigations (IRS-CI), the U.S. Department of Homeland Security, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge Police Department, the West Baton Rouge Parish Sheriff’s Office, and the Ascension Parish Sheriff’s Office. This matter is being prosecuted by Assistant United States Attorneys Robert W. Piedrahita, Peter Smyczek and Elizabeth White.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
Baton Rouge Man Sentenced to Federal Prison for Threats Made Against President TrumpRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelly D. Dick sentenced HENRY K. RAYBORN, age 63, of Baton Rouge, Louisiana, to 46 months in federal prison following his conviction for threats against President Donald J. Trump. The Court also sentenced RAYBORN to 3 years of supervised release following his term of imprisonment.
In March of 2018, RAYBORN made several statements indicating he had access to guns and that he was planning to kill the President of the United States. The investigation revealed RAYBORN knowingly and willfully made the above statements regarding his intent to kill the President and intended them to be taken seriously.
U.S. Attorney Fremin stated, “The safety and well-being of our elected officials is an extraordinarily important component of a properly functioning democracy. This conviction and sentence should send a clear message to those who may make threats against the President that federal law enforcement takes such matters seriously and will investigate and prosecute those responsible for such behavior. I am very proud of the work of our dedicated staff and of the United States Secret Service who worked quickly and diligently on this important case.”
Tara McLeese, Resident Agent in Charge of the United States Secret Service in Baton Rouge stated, “The highest priority is placed on ensuring that any individual who may pose a potential threat to persons, facilities, and events protected by the U.S. Secret Service is fully investigated. Any threat, inappropriate interest, or unusual behavior directed toward Secret Service protectees is taken seriously and today’s sentencing is a testament to that fact.”
This matter is being handled by the U.S. Attorney’s Office and the U.S. Secret Service and is being prosecuted by Assistant United States Attorney M. Patricia Jones, who also serves as Appellate Chief and Senior Litigation Counsel.
Defendant Sentenced to Federal Prison in Operation Third World Targeting Drug Trafficking OrganizationRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelly D. Dick sentenced KELLY D. WILLIAMS, age 43, of Zachary, Louisiana, to 262 months in federal prison following his convictions for conspiracy to distribute and to possess with the intent to distribute cocaine, distribution of crack cocaine and oxycodone, conspiracy to acquire controlled substances by fraud, and unlawful use of a communication facility. The Court also sentenced WILLIAMS to 5 years of supervised release following his term of imprisonment. The court also ordered a judgement of forfeiture in the amount of $1,020,340.00.
According to admissions made as part of his guilty plea, WILLIAMS conspired with numerous individuals to obtain, distribute, and possess with the intent to distribute, large quantities of cocaine in excess of five kilograms and did conspire knowingly and intentionally to acquire and obtain possession of controlled substances by misrepresentation, fraud and deception.
As part of the conspiracy, WILLIAMS purchased multi- kilogram quantities of cocaine and distributed various amounts of cocaine and crack cocaine to his co-conspirators for further distribution in the Baton Rouge area. WILLIAMS also used violence and the threat of violence in order to advance the conspiracy.
U.S. Attorney Fremin stated, “Violent drug dealers have no place in our communities. Our office will use every resource at our disposal to ensure that those who peddle drugs and violence will be kept off of our streets. I want to thank our prosecutors, and our federal, state, and local partners for their efforts.”
DEA Acting Assistant Special Agent in Charge Michael Arnett said, “Cocaine and crack cocaine destroy lives and have far-reaching negative effects in the communities where they take hold. Side by side with our local law enforcement partners, DEA is holding drug dealers accountable. Together, we are putting dealers where they belong – behind bars. Let this conviction be a clear message to all that if you distribute drugs in this region, you will be identified, investigated and prosecuted to the fullest extent of the law.”
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
Operation Third World was handled by the U.S. Attorney’s Office, the Drug Enforcement Administration (DEA), the Internal Revenue Service-Criminal Investigations (IRS-CI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sheriff’s Office, the Ascension Parish Sheriff’s Office, the Louisiana State Police, the Iberville Parish Sheriff’s Office, the Livingston Parish Sheriff’s Office, the Gonzales Police Department, and the Baker Police Department. This matter was prosecuted by Assistant United States Attorney Jennifer Kleinpeter, who also serves as a deputy criminal chief.
Joshual Hilton Sentenced to Federal Prison on Drug Trafficking and Gun ChargesRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelly D. Dick sentenced JOSHUAL HILTON, age 33, of Baton Rouge, Louisiana, to 384 months in federal prison following his convictions after a three-day jury trial in June 2018 for possession with the intent to distribute methamphetamine, marijuana, and promethazine, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking offense. The Court also sentenced HILTON to 10 years of supervised release following his term of imprisonment and ordered that the firearms be forfeited.
Evidence at trial showed that HILTON sold marijuana to an individual at his residence in September 2016, and thereafter the East Baton Rouge Parish Sheriff’s Office obtained a search warrant to search the defendant’s residence. Prior to the search, law enforcement officers placed HILTON’s residence under surveillance. Officers observed HILTON leave his residence in his automobile and proceed to meet with several individuals in the Sherwood Forest area and engage in what appeared to be drug transactions from his vehicle. HILTON was observed returning to his residence and entering his house, only to leave again a short time later. A marked unit attempted to stop HILTON; however, HILTON led officers on a high speed chase, exceeding 100 miles per hour in some places, running stop signs and passing vehicles on the shoulder in an attempt to elude arrest. HILTON was observed throwing items out of his vehicle window, which were later recovered and determined to be three bottles of liquid promethazine. HILTON abandoned his vehicle at a dead end street, but was later apprehended as he fled on foot.
Officers returned to HILTON’s residence and executed the search warrant. During the search, officers located 1,948 grams of methamphetamine, over five pounds of marijuana, 22 bottles of liquid promethazine, a digital scale, $42,877 in drug proceeds, and a loaded Glock 23 .40 caliber pistol and magazine.
U.S. Attorney Fremin stated, “This conviction and sentence should send a loud and clear message that our office will not tolerate unrepentant drug dealers who continue to sell dangerous drugs in our communities. Enforcing our drug laws prevents addiction and violence from spreading and will continue to be a priority in this district. This operation could not have been a success without the efforts of our outstanding prosecution team, the ATF, the East Baton Rouge Sheriff’s Office and the Livingston Parish Sheriff’s Office.”
“The East Baton Rouge Sheriff’s Office is proud of the partnership we have with the U.S. Attorney’s Office and appreciate their commitment to prosecute these cases on the federal level,” Sheriff Sid Gautreaux said. “We look forward to continuing working together to combat the drugs that plague our community.”
This conviction is part of Operation All in the Famm, an extensive federal, state, and local investigation aimed at dismantling a large scale drug trafficking network based in East Baton Rouge Parish, Louisiana. As a result of this operation, three individuals with significant drug trafficking, firearm, and conspiracy charges have been convicted. Terrance Hilton pled guilty on April 2, 2019 to possession with the intent to distribute heroin and possession of a firearm by a convicted felon. Damiene Lewis pled guilty on April 19, 2018 to conspiracy to distribute cocaine, distribution of cocaine, and possession of a firearm in furtherance of a drug trafficking offense. Hilton faces a significant term of imprisonment, a fine, and a period of supervised release.
This operation is being handled by the U.S. Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the East Baton Rouge Parish Sheriff’s Office, and the Livingston Parish Sheriff’s Office. This matter is being prosecuted by Assistant United States Attorney Jennifer Kleinpeter, who also serves as a deputy criminal chief.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program that was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
Louisiana-Based Licensed Clinical Social Worker Pleads Guilty to Medicaid Fraud SchemeRead the Press Release
WASHINGTON – A Louisiana-based licensed clinical social worker pleaded guilty today for his role in a scheme to defraud Medicaid.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office and Director Jeff W. Traylor of the Louisiana Attorney General’s Office’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Michael Dan Gaines, 66, of Baker, Louisiana, pleaded guilty to one count of health care fraud. His sentencing has not yet been scheduled by U.S. District Judge John W. deGravelles of the Middle District of Louisiana, who accepted his plea.
Gaines was a supervisory-level licensed clinical social worker at St. Gabriel Health Clinic Inc. (St. Gabriel), which was a federally qualified health center (FQHC) headquartered in St. Gabriel, Louisiana that contracted with the Iberville Parish School Board to provide medical services within the school district. As a FQHC, St. Gabriel could provide primary care services to students as well as services related to the diagnosis and treatment of mental illnesses, provided that such services were medically necessary, among other requirements. As part of his guilty plea, Gaines admitted that he and other St. Gabriel practitioners provided character development seminars and other educational programs to entire classrooms of students during regular class periods. Gaines further admitted that St. Gabriel then submitted numerous fraudulent claims to Medicaid, falsely representing that the practitioners had performed group psychotherapy. In addition, Gaines admitted that to facilitate the fraudulent scheme, he and others falsely diagnosed students with mental health disorders.
According to the indictment, during the relevant time period, St. Gabriel’s claims for group psychotherapy services totaled more than $1.8 million.
The case was investigated by HHS-OIG, the FBI and the MFCU, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. Trial Attorneys Justin M. Woodard and Jared Hasten of the Fraud Section and Assistant U.S. Attorney Jessica M.P. Thornhill of the Middle District of Louisiana are prosecuting the case.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Louisiana-Based Licensed Clinical Social Worker Pleads Guilty to Medicaid Fraud SchemeRead the Press Release
A Louisiana-based licensed clinical social worker pleaded guilty today for his role in a scheme to defraud Medicaid.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office and Director Jeff W. Traylor of the Louisiana Attorney General’s Office’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Michael Dan Gaines, 66, of Baker, Louisiana, pleaded guilty to one count of health care fraud. His sentencing has not yet been scheduled by U.S. District Judge John W. deGravelles of the Middle District of Louisiana, who accepted his plea.
Gaines was a supervisory-level licensed clinical social worker at St. Gabriel Health Clinic Inc. (St. Gabriel), which was a federally qualified health center (FQHC) headquartered in St. Gabriel, Louisiana that contracted with the Iberville Parish School Board to provide medical services within the school district. As a FQHC, St. Gabriel could provide primary care services to students as well as services related to the diagnosis and treatment of mental illnesses, provided that such services were medically necessary, among other requirements. As part of his guilty plea, Gaines admitted that he and other St. Gabriel practitioners provided character development seminars and other educational programs to entire classrooms of students during regular class periods. Gaines further admitted that St. Gabriel then submitted numerous fraudulent claims to Medicaid, falsely representing that the practitioners had performed group psychotherapy. In addition, Gaines admitted that to facilitate the fraudulent scheme, he and others falsely diagnosed students with mental health disorders.
According to the indictment, during the relevant time period, St. Gabriel’s claims for group psychotherapy services totaled more than $1.8 million.
The case was investigated by HHS-OIG, the FBI and the MFCU, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. Trial Attorneys Justin M. Woodard and Jared Hasten of the Fraud Section and Assistant U.S. Attorney Jessica M.P. Thornhill of the Middle District of Louisiana are prosecuting the case.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Felon in Possession of a Firearm Sentenced to Federal PrisonRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that District Judge John W. deGravelles sentenced TERRION JACKSON, a 24 year-old resident of Baton Rouge, Louisiana, to 87 months in federal prison following his conviction of possessing a firearm by a convicted felon. The Court further sentenced JACKSON to 3 years of supervised release following his term of imprisonment and ordered that the firearm be forfeited.
On February 5, 2018, a Baton Rouge Police Officer stopped JACKSON, who was driving a vehicle with an expired registration tag. The officer smelled marijuana coming from the vehicle and asked JACKSON and his passenger to step out at which time JACKSON told the officer he had a gun under the driver’s seat. The officer returned to the vehicle and recovered a loaded Canik55, 9mm pistol from underneath the driver’s seat, along with marijuana packaged for sale which JACKSON admitted belonged to him.
JACKSON has three prior felony convictions which prohibit him from possessing a firearm. On May 31, 2016, in the Nineteenth Judicial District Court, JACKSON pled guilty to simple robbery, simple burglary of an inhabited dwelling, and aggravated burglary.
U.S. Attorney Fremin stated, “This is yet another step towards our goal of making our communities safer. Keeping guns out of the hands of violent felons is one of my office’s top priorities. We will continue to aggressively pursue those who illegally possess firearms and use them to endanger the lives of other citizens. I appreciate the great work performed in this case by our prosecutors, the ATF, and the Baton Rouge Police Department.”
“ATF New Orleans Field Division works every day with our partners to take the most violent offenders off our streets and put them behind bars where they belong,” said Special Agent in Charge Dana Nichols. “ATF will continue working to keep our communities and our citizens safe from those who commit acts of violence.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Jessica Thornhill.
Child Predator Sentenced to 97 Months in Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Court Judge Brian A. Jackson sentenced STEVEN J. EVERHARDT, age 52, of Baton Rouge, Louisiana, to serve 97 months in federal prison following his conviction for possession of child pornography. EVERHARDT will also be required to serve five years of supervised release, register as a convicted sex offender upon his release from prison, pay a special assessment of $5,100, and pay a total of $66,000 in restitution to the victims who were identified as children photographed in the images.
This criminal case began when the FBI conducted an undercover operation and obtained numerous images of child pornography from an IP address at EVERHARDT’s home. During a subsequent search of EVERHARDT’s home, over 50,000 images were discovered on EVERHARDT’s computers. These images were of minors engaged in sexually explicit conduct, some of which depicted the sexual abuse of toddlers, sadistic or masochistic conduct involving minor victims, and violence against minor victims. On December 10, 2018, EVERHARDT pled guilty to one count of knowingly possessing material which contained images of child pornography.
U.S. Attorney Fremin stated, “The sexual exploitation of children is one of the most despicable acts of human behavior and will always be a priority for this office. This conviction and sentence should serve as a reminder that this office will not tolerate those who prey upon innocent and vulnerable children. We will use every resource at our disposal to reach our goal of keeping children safe from the predators who exploit them. I want to thank the prosecutors in our office as well as the FBI for their important work in this case.”
FBI New Orleans SAC Eric Rommal stated, “Steven Everhardt preyed upon vulnerable and innocent children, many of whom were too young to communicate they were being abused. There is no place in society for sexual deviants like Steven Everhardt or anyone of his kind. The FBI remains committed to working with our ICAC partners, the LA Attorney General's Office, Louisiana State Police, Homeland Security Investigations, and East Baton Rouge Sheriff's Office to eradicate all forms of child sexual abuse."
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Fred Menner.
Louisiana Woman Sentenced to Federal Prison in Connection with Disaster Fraud and Identity Theft SchemeRead the Press Release
U.S. Attorney Brandon J. Fremin, who also serves as the Executive Director of the National Center for Disaster Fraud, announced today that U.S. Chief Judge Shelly D. Dick sentenced RENATA FOREMAN, age 39, of Independence, Louisiana, to serve 111 months in federal prison following her convictions on multiple wire fraud and aggravated identity theft counts related to the 2016 flooding in Baton Rouge. The Court further sentenced FOREMAN to 5 years of supervised release following her term of imprisonment.
Following the 2016 flooding, which affected 20 parishes in south Louisiana, FEMA funds were available to people who became unemployed because of the flood. The funds were administered by the Louisiana Workforce Commission in the form of Disaster Unemployment Assistance (“DUA”). In total, FOREMAN submitted approximately 55 fraudulent applications using stolen identities.
At trial, the jury heard testimony and saw evidence that FOREMAN kept logs and notebooks containing personally identifiable information of numerous people which she used in her scheme. The evidence also showed that FOREMAN submitted fraudulent claims from multiple locations in New Orleans and the surrounding area. During the commission of the crime, FOREMAN was residing in a federal halfway house stemming from her 2013 convictions for mail fraud, theft of government funds, and identity theft.
U.S. Attorney Fremin said, “This conviction and sentence serve notice that our office and the National Center for Disaster Fraud take seriously crimes involving disaster relief fraud. Those, like this defendant, whose criminal behavior interferes with tax dollars of hard-working citizens will always be a top priority of this office. I want to thank our prosecutors, the U.S. Department of Labor, Office of Inspector General, the FBI, and the Louisiana Workforce Commission, whose joint efforts brought this defendant to justice.”
Special Agent in Charge Eric J. Rommal, FBI New Orleans stated, "The Federal Bureau of Investigation, with our partners at the Department of Labor Office of Inspector General, remains dedicated to combating fraud in Louisiana. Foreman attempted to exploit the 2016 flood for personal gain utilizing stolen identities. It is our hope that this case serves as a warning that the FBI will vigorously investigate those attempting to defraud others in the wake of disaster."
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims. Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the National Center for Disaster Fraud at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
This matter is being investigated by the U.S. Department of Labor Office of Inspector General and the FBI with substantial assistance provided by the Louisiana Workforce Commission. The case is being prosecuted by Assistant U.S. Attorneys Peter Smyczek and Fred Menner of the Middle District of Louisiana.
Member of Large Drug Trafficking Network Pleads Guilty in Federal CourtRead the Press Release
United States Attorney Brandon J. Fremin announced today the conviction of an additional individual charged in Operation Hidden Fee in connection with an extensive federal, state, and local investigation by the Middle District Organized Crime and Drug Enforcement Task Force (OCDETF) aimed at a drug trafficking network based and operating in Baton Rouge. The Indictment filed in this matter charged significant drug trafficking offenses involving heroin, methamphetamine, and crack cocaine, as well as several firearm offenses.
On March 13, 2019, HENRY J. HAYES, age 42, of Baton Rouge, Louisiana, appeared before U.S. Chief Judge Shelly D. Dick and pled guilty to conspiracy to distribute and to possess with the intent to distribute heroin and crack cocaine, distribution of heroin and crack cocaine, possession with the intent to distribute heroin and crack cocaine, and possession of a firearm by a convicted felon.
Beginning in January 2017 and continuing through July 2017, law enforcement agents with the Drug Enforcement Administration were investigating the drug trafficking activities of James Christian Hull. During the course of this investigation, federal agents identified HAYES as one of Hull's suppliers who furnished Hull with multi-ounce quantities of heroin and crack cocaine on a weekly basis. They sometimes met at locations near Drusilla Dr. in Baton Rouge, where HAYES supplied Hull with ounce amounts of heroin and crack cocaine, which Hull distributed to associates and customers.
On June 13, 2017, during the execution of a search warrant, agents found a number of firearms, large amounts of heroin, cocaine, and crack cocaine, and approximately $138,293 in cash at HAYES’ residence in Baton Rouge, Louisiana.
HAYES was previously convicted in East Baton Rouge Parish, Louisiana, for possession of ecstasy and sentenced to serve 2.5 years prison.
On July 10, 2018, James C. Hull pled guilty to conspiracy to distribute and to possess with the intent to distribute heroin, methamphetamine, distribution of methamphetamine and heroin, and four counts of unlawful use of communications facility. As part of the plea, Hull admitted to being the head of a narcotics distribution ring involving 21 subordinate drug dealers who operated throughout the Baton Rouge area.
U.S. Attorney Fremin stated, “The conviction of another member of this drug gang demonstrates the success that can be realized by cooperation of federal, state, and local law enforcement. I want to thank our prosecutors and all of the law enforcement agencies involved in this prosecution.”
“This investigation highlights the impact multiple agencies can have when they join forces. We will continue to work together with our local law enforcement partners and pursue those who threaten our communities through their criminal activities. The successful prosecution of this individual should put others who engage in this type of activity on notice,” said Brad L. Byerley, Special Agent in Charge of the DEA’s New Orleans Field Division.
The investigation is yet another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program, which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This ongoing investigation was led by the Drug Enforcement Administration with invaluable assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the East Baton Rouge Parish Sheriff’s Office, the Baton Rouge City Police Department, and the Louisiana State Police. Other agencies also assisted in apprehending the defendant, including the U.S. Marshal’s Service, and the Sheriffs’ Offices in Ascension, Iberville, and West Baton Rouge Parishes.
This case is being prosecuted by Assistant U.S. Attorneys Robert Piedrahita and Lyman Thornton, III.
Felon in Possession of a FirearmRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that District Judge John W. DeGravelles sentenced CORY CONRAD, a 30 year-old resident of Magnolia, Mississippi to 46 months in federal prison following his conviction of possessing a firearm by a convicted felon. The Court further sentenced CONRAD to 3 years of supervised release following his term of imprisonment and ordered that the firearm be forfeited.
On March 16, 2018, Baton Rouge Police Officers stopped CONRAD, who was driving a vehicle that had been reported stolen. CONRAD was the only occupant of the vehicle. Upon stopping the vehicle, officers asked CONRAD to step out of the vehicle at which time CONRAD told the officers that he had a firearm in his lap. The firearm, a loaded Smith and Wesson M&P 9 Shield, 9mm semi-automatic pistol, serial number HKY3107, fell as CONRAD exited the vehicle, and the officers recovered it from the driver’s area of the vehicle.
CONRAD has five prior felony convictions which prohibit him from possessing a firearm.
On March 12, 2012, in the Nineteenth Judicial District Court of Louisiana, CONRAD pled guilty to simple burglary and attempted simple robbery. On March 25, 2008, in the Nineteenth Judicial District Court of Louisiana, CONRAD pled guilty to simple burglary. On March 20, 2007, in the Nineteenth Judicial District Court of Louisiana, CONRAD pled guilty to possession of Alprazolam. On July 18, 2011, in the Twenty-third Judicial District Court of Louisiana, CONRAD plead guilty to theft of a motor vehicle.
U.S. Attorney Fremin stated, “Our office takes seriously the issue of guns in the hands of career criminals. We will continue to work tirelessly with our federal, state and local partners to protect our district from chronic offenders. I want to thank our prosecutors, the ATF, and the Baton Rouge Police Department for their work on this case.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Jessica Thornhill.
Federal Jury Convicts Two Violent Gunmen of Possessing Firearms After Previous Felony ConvictionsRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today the convictions of TIMMY SCOTT a/k/a “TIMOTHY SCOTT,” a 24-year-old resident of Baton Rouge, Louisiana, and KADEEM BURDEN, a 23-year-old resident of Baton Rouge, Louisiana. SCOTT and BURDEN were indicted by a federal grand jury on November 29, 2017 and charged with felon in possession of firearms.
After a two day trial before visiting U.S. District Judge Lance M. Africk, the jury unanimously convicted SCOTT and BURDEN. As the evidence at trial demonstrated, on October 2, 2017, SCOTT and BURDEN initiated a shooting on Iroquois Street that was witnessed by a Baton Rouge City Police officer, who pursued SCOTT and BURDEN into a residential area. A K-9 team assisted and found two firearms discarded under a house, a 7.62 caliber Century Arms semi-automatic AK rifle style pistol, and a 9mm Smith and Wesson pistol. Also recovered were two Halloween style masks and two cellular phones. Forensic testing by Louisiana State Police Crime lab and a Pittsburg, PA., private laboratory positively matched SCOTT to DNA recovered from one of the masks and matched BURDEN’s DNA to the trigger and grip of the AK rifle style pistol. The Louisiana State Police Crime lab was also able to match the fired 9mm cartridges recovered from the shooting location to the recovered pistol. The BATF and FBI executed search warrants on the phones and linked them to SCOTT.
As a result of their convictions, SCOTT and BURDEN now face a maximum sentence of ten years in federal prison, significant fines, restitution, and supervised release.
U.S. Attorney Fremin stated, “I want to commend the brave and swift action of the Officers of the Baton Rouge City Police Department who were faced with two active shooters - one armed with a high-powered military style firearm. To pursue two armed gunmen into a residential area and apprehend them quickly, without any injuries, is a testament to their courage and dedication to protecting innocent civilians who were in harm’s way. I want to express my gratitude to all of the dedicated law enforcement personnel, including our prosecution team, who worked long hours to prepare and present this case to the jury. The streets of Baton Rouge are much safer with these two defendants behind bars. Our office will not rest as we continue to bring cases against the most violent offenders in our community.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Baton Rouge City Police, the Federal Bureau of Investigation and the Louisiana State Police Crime Lab. The case is being prosecuted by Assistant United States Attorneys Lyman Thornton III and Fred Menner.
Baton Rouge Doctor and His Medical Billing Supervisor Plead Guilty to Fraudulent Billing SchemeRead the Press Release
WASHINGTON – A Baton Rouge, Louisiana-based doctor pleaded guilty yesterday and his medical billing supervisor pleaded guilty today for their roles in a scheme to defraud Medicare and other health care insurers.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office, and Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office made the announcement.
John Eastham Clark M.D., 66, of Baton Rouge, pleaded guilty on Feb. 13 to count one of an indictment charging him with conspiracy to commit health care fraud. His sentencing has not been scheduled yet by U.S. District Judge Shelly D. Dick of the Middle District of Louisiana, who accepted his plea. Charlene Anita Severio 56, of Walker, Louisiana, pleaded guilty today to one count of an indictment charging her with conspiracy to commit health care fraud and wire fraud and two counts of the indictment charging health care fraud. Her sentencing has not been scheduled yet by Judge Dick, who accepted her plea.
“For nearly a decade, John Eastham Clark and Charlene Anita Severio submitted fraudulent claims to Medicare and other health insurers for payments they were not entitled to receive,” said Assistant Attorney General Benczkowski. “These guilty pleas should serve as a warning to unscrupulous doctors and other medical professionals: the Criminal Division’s Medicare Fraud Strike Force and our law enforcement partners will aggressively investigate and prosecute illegal billing practices and other fraudulent schemes that steal taxpayer dollars and increase healthcare program costs for all Americans.”
“In defrauding the Medicare system, Dr. Clark violated a sacred oath taken by physicians but above all he violated the law,” said U.S. Attorney Fremin. “Ms. Severio, an employee of Dr. Clark, submitted fraudulent claims to both Medicare and other health care insurers as part of the scheme. We will continue to hold medical professionals accountable for abusing positions of trust in the community and for harming the financial integrity of our health care system. I want to thank the Department of Justice’s Criminal Division, Fraud Section, the FBI, Health and Human Services - Office of Inspector General and the dedicated attorneys and staff from our office for their outstanding efforts in this case.”
“Today’s guilty pleas clearly illustrate that, along with our law enforcement partners, we will aggressively pursue criminal charges against bad actors in the Medicare program,” said HHS-OIG Special Agent in Charge Porter. “Those intent on robbing patients with legitimate medical needs of access to taxpayer funds earmarked for their health care, will ultimately pay a heavy price.”
“Agents of the Federal Bureau of Investigation remain dedicated to combating health care fraud and to doing our part in reducing the impact that opioids have on our nation,” said FBI Special Agent in Charge Rommal. “This was a case that spanned multiple years and has resulted in numerous convictions. It highlights the cooperation between the FBI and the Health and Human Services - Office of the Inspector General.”
Clark was a co-owner and the medical director of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge. According to plea documents, the charge stems from Clark’s role in a scheme to submit fraudulent claims to Medicare and other health care insurers. Specifically, as part of his guilty plea, Clark admitted that from approximately June 2005 through March 2015, he, along with his billing supervisor Severio, and others, conspired to submit fraudulent claims indicating that minor surgical procedures occurred on days subsequent to office visits, when in fact the office visits and procedures took place on the same day. Clark admitted that this practice, commonly referred to as “unbundling,” was done to defraud health care insurers for non-reimbursable office visits. Clark further admitted to falsifying, and directing Severio and others to falsify, records substantiating the fraudulent claims.
Severio was a billing supervisor at Louisiana Spine & Sports, and worked for Clark. According to admissions made as part of her guilty plea, from approximately June 2005 through March 2015, Severio conspired with Clark to submit fraudulent claims to Medicare and other health care insurers. Specifically, Severio admitted that she knowingly and willfully submitted fraudulent claims indicating that minor surgical procedures performed by Clark occurred on days subsequent to office visits, when in fact the office visits and procedures took place on the same day. Severio admitted that this practice was done to defraud health care insurers.
In another case involving Louisiana Spine & Sports, on Nov. 20, 2018, Gray Wesley Barrow M.D., a co-owner of Louisiana Spine & Sports, pleaded guilty to a scheme to receive approximately $336,000 in illegal health care kickback payments. Barrow is scheduled to be sentenced on March 1. In addition, Christopher William Armstrong, a former physician’s assistant at Louisiana Spine & Sports, pleaded guilty on Nov. 27, 2018 for his role in a scheme to unlawfully distribute thousands of oxycodone pills. Armstrong is scheduled to be sentenced on April 16.
The case was investigated by HHS-OIG and the FBI. Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the Middle District of Louisiana are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Former Correctional Officer Pleads Guilty to Assaulting Two Handcuffed Inmates at Elayn Hunt Correctional CenterRead the Press Release
WASHINGTON – Adrian Almodovar III, a former correctional officer at Elayn Hunt Correctional Center in St. Gabriel, Louisiana, pleaded guilty in federal court today to unlawfully assaulting two handcuffed inmates and to failing to stop other correctional officers from assaulting one of the inmates.
“The Justice Department will hold correctional officers accountable to the public by investigating and prosecuting officers who inflict cruel and unusual punishment on inmates,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division is committed to protecting victims of these abuses and upholding the Constitution and laws that protect us all.”
“This officer chose to engage in criminal activity and by doing so dishonored himself and the countless honorable corrections officers who undertake difficult and dangerous work in our penal institutions every day - for that, he was held accountable,” said U.S. Attorney Fremin. “We will remain steadfast in upholding our obligation to protect the civil rights of others and will hold accountable those, like Mr. Almodovar, who abuse their authority. I want to thank the Civil Rights Division of the Department of Justice, the FBI, and the Office of the Louisiana Inspector General for their efforts in bringing this offender to justice.”
“The integrity of the entire system is threatened when those entrusted with power and authority choose to violate that trust. It is especially egregious when it happens in the corrections system,” said Louisiana Inspector General Stephen Street. “All who engage in this criminal behavior should know that significant criminal consequences will result. The Louisiana OIG remains committed to working with our law enforcement partners to ensure this.”
"Placed in a position of public trust at the Elayn Hunt Correctional Facility, Adrian Almodovar III abused defenseless inmates, discredited our justice system, and tarnished the image of countless good officers. The FBI remains committed to upholding the Constitution and protecting the civil rights of all persons," said Eric J. Rommal, FBI New Orleans Special Agent in Charge.
Almodovar, 39, pleaded guilty to one count of willfully depriving the inmates of their right to be free from cruel and unusual punishment. Information presented during the plea hearing established that Almodovar assaulted inmate J.H. multiple times on Jan. 9, 2017, by punching him in the face. During all of these assaults, inmate J.H. was restrained in handcuffs and was not offering any resistance. Later that day, Almodovar also punched inmate L.B. in the head. During this assault, inmate L.B. was also restrained in handcuffs and was not offering any resistance.
During the plea hearing, Almodovar admitted he was aware at the time of these assaults that he did not have any legal justification for using force on the inmates but did so anyway. Almodovar also admitted that he witnessed other correctional officers assaulting inmate J.H. on two separate occasions and failed to intervene to stop them, despite knowing he had a duty to protect inmates from unlawful assaults. Two other correctional officers have previously pleaded guilty for their roles in the assaults on inmate J.H.
Almodovar faces a maximum statutory penalty of ten years in prison and a $250,000 fine.
This case is being investigated by the FBI’s Baton Rouge Resident Agency Office and the Louisiana Office of the State Inspector General. The case is being prosecuted by Trial Attorney Zachary Dembo of the Civil Rights Division’s Criminal Section.
Defendants Sentenced to Federal Prison in Operation Dirty Bird Targeting Heroin Trafficking OrganizationRead the Press Release
United States Attorney Brandon J. Fremin announced today that two additional individuals have been sentenced to federal prison following their convictions in Operation Dirty Bird, an extensive federal, state, and local investigation aimed at dismantling a large scale heroin trafficking network based in Ascension Parish, Louisiana, and Houston, Texas. The indictment charged individuals with significant drug trafficking, racketeering, firearm, and conspiracy charges. To date, investigative efforts have resulted in the seizure of over one and a half kilograms of heroin, substantial amounts of methamphetamine, crack cocaine, and oxycodone. As a result of this operation, authorities have also seized seven firearms, over $314,000 in drug proceeds, and three vehicles allegedly used in the drug trafficking venture: a 2013 Porsche 911, a Mercedes CLS550, and a GMC Hummer. To date, 11 defendants have been sentenced, two defendants are pending sentencing, and two defendants are awaiting trial.
U.S. District Judge John W. deGravelles sentenced JABLONSKI HANKTON a/k/a “Blossy,” “Blasky,” and “Blosky,” age 37, of Gonzales, Louisiana, to 95 months in federal prison following his convictions for conspiracy to distribute and possess with the intent to distribute heroin and unlawful use of a communications facility. The Court also sentenced HANKTON to 4 years of supervised release following his term of imprisonment.
According to admissions made as part of his guilty plea, HANKTON bought heroin from Jason Muse to sell to others in and around Ascension Parish. Furthermore, HANKTON used a telephone on numerous occasions to discuss the distribution of heroin with Jason Muse.
DENMOND SMITH, age 39, of St. James, Louisiana was charged by indictment in the Middle District of Louisiana for conspiracy to distribute heroin, and unlawful use of communication facilities. SMITH was also charged by indictment in the Southern District of Mississippi, Northern Division for conspiracy to distribute five grams or more of methamphetamine and distribution of five grams or more of methamphetamine. SMITH was sentenced in both matters by U.S. District Judge John W. deGravelles to 120 months in federal prison in each case, to run concurrently. The Court also sentenced SMITH to 5 years of supervised release following his term of imprisonment.
According to admissions made as part of his guilty pleas, SMITH admitted to buying heroin from Jason Muse to sell to others in and around Ascension Parish and traveling to McComb, Mississippi, from Louisiana with an accomplice for the purpose of purchasing methamphetamine.
U.S. Attorney Fremin stated, “The success of this operation demonstrates what federal authorities, working across state boundaries and alongside our state and local partners can accomplish. We will continue to use all available resources to stop the flow of these deadly drugs to our streets. The people of this District, and in this case the people of Ascension Parish, deserve nothing less. I want to thank our prosecutors and our federal, state, and local partners for their efforts.”
“Federal and local law enforcement has successfully collaborated in order to put these drug dealers in jail as a result of their desire to supply the citizens in the greater Baton Rouge area with heroin and methamphetamine, said DEA Acting Assistant Special Agent in Charge Michael Arnett. “DEA will remain relentless in our efforts to cripple these dealers and remove them from our neighborhoods, keeping our communities safe.”
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the Ascension Parish Sheriff’s Office, the Iberville Parish Sheriff’s Office, the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sheriff’s Office, the Louisiana State Police, and the Gonzales Police Department. This matter is being prosecuted by Assistant United States Attorney Jennifer Kleinpeter, who also serves as a deputy criminal chief.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program that was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
Former Shaw Insider Sentenced to Federal Prison for Insider TradingRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge John W. deGravelles sentenced KELLY LIU, age 33, of Baton Rouge, Louisiana, to 16 months in federal prison following her convictions for securities fraud (insider trading) and conspiracy to commit securities fraud. The Court also sentenced LIU to pay a fine of $7,500 and to serve 1 year of supervised release following her term of imprisonment.
In May of this year, a jury found LIU and her two co-defendants guilty as charged in connection with an insider trading scheme related to the 2012 acquisition of the Shaw Group (“Shaw”) by Chicago Bridge and Iron Company (“CB&I”). According to evidence presented at trial, in mid-2012, Shaw was considering a potential merger opportunity. At the time, LIU was working in Shaw’s Financial Planning and Analysis Department on Essen Lane. In July 2012, Shaw and CB&I came to an agreement on an offer for CB&I to buy Shaw. This merger between the two companies was publicly announced on July 30, 2012 (“the public announcement”). As a result of the public announcement, Shaw’s stock price rose by around 55 percent.
The evidence at trial established that, prior to the public announcement and through her job at Shaw, LIU obtained inside information that Shaw was going to be acquired by another company. She subsequently passed the inside information to Victory Ho (“Ho”), through another individual, and to her former boyfriend, Salvador J. Russo, III (“Russo”), for their use in trading Shaw stock and options. Documents and testimony presented at trial also showed that, in the months leading up to the public announcement, LIU was assisting a Ho family business with obtaining financing and insurance on a real estate project in Morgan City, Louisiana.
Based on the information provided by LIU, Ho and Russo purchased Shaw stock and options before the public announcement. Through these purchases, Ho reaped almost $300,000, and Russo secured a profit of approximately $4,000 on a $5,000 investment.
On October 24, 2018, co-defendant Victory Ho, age 39, of Morgan City, was sentenced to 32 months in federal prison, ordered to forfeit over $300,000 and to pay a $15,000 fine, following his convictions in the same insider trading scheme.
On October 30, 2018, co-defendant Russo, age 35, of Baton Rouge, was sentenced to 16 months in federal prison following his convictions in the same scheme.
United States Attorney Fremin stated, “This investigation and prosecution of another company insider should serve as a strong deterrent to others in the future. It is crucial that investors in the Middle District of Louisiana and across the country know that federal law enforcement will devote substantial resources to safeguard and protect a level playing field in the financial markets. Once again, I appreciate the team of agents from FBI, Secret Service, and IRS-Criminal Investigation, along with the staff and prosecutors from my office, who devoted countless hours to this investigation and prosecution.”
Passing private information regarding stock transactions in the hopes that it will yield big returns for certain insiders is not savvy investing; it's criminal activity,” stated Thomas J. Holloman, III, IRS - Criminal Investigation Special Agent in Charge. "Today's sentence reinforces our commitment to every American that IRS – Criminal Investigation will work diligently to protect the assurances of market integrity that should be afforded to all investors.
Tara McLeese, Resident Agent in Charge of the Secret Service Baton Rouge office stated “The justice delivered in this case highlights a successful joint investigative effort undertaken by several agencies in the Baton Rouge area. The United States Secret Service will continue our relentless pursuit of those who seek to endanger the financial integrity of the United States for their own benefit and will continue to work in unison with our federal, state and local partners.”
FBI Special Agent-in-Charge Eric J. Rommal stated, “The FBI New Orleans Field Office will continue to work with our federal, state, and local partners to uphold the integrity of the nation’s securities and commodities markets. The selfish, illegal, and unethical behavior of Kelly Liu will not be tolerated. Corporate insiders like Kelly Liu, and her co-conspirators, Ho and Russo, who unjustly enrich themselves using material non-public information, will be held accountable for their actions.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Baton Rouge offices of the FBI, Secret Service, and IRS-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Chris Dippel and Patricia Jones.
Drug Distribution Conspirator Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge Brian A. Jackson sentenced KENNETH TERRELL ROBERTSON, a/k/a “Terrell” and “K-Lo,” age 40, of Hattiesburg, Mississippi, to 108 months in federal prison following his conviction for conspiracy to distribute and possess with intent to distribute cocaine and cocaine base. The Court further sentenced ROBERTSON to three years of supervised release following his term of imprisonment. Also, as a result of his conviction, ROBERTSON must forfeit to the United States all proceeds obtained as a result of his criminal conduct.
ROBERTSON was charged as a result of an extensive federal, state, and local investigation aimed at a drug trafficking network based in Ascension Parish and covering Louisiana, Texas, and Mississippi. The drug trafficking organization, led by Arthur Johnson (“Johnson”), distributed multi-kilogram quantities of cocaine, crack cocaine, and heroin in and around Hattiesburg, Mississippi and Ascension Parish Louisiana. Under the direction of Johnson, members of his criminal organization used public and private places as well as cellular telephones listed in the names of others to arrange and carry out the purchase and sale of cocaine, crack cocaine, and heroin. ROBERTSON served as Johnson’s point of sales in Hattiesburg, Mississippi. Johnson arranged for cocaine to be shipped from Ascension Parish to ROBERTSON in Hattiesburg. After receiving the cocaine, ROBERTSON would store the cocaine and distribute it to other members of the organization for resale in and around Hattiesburg.
U.S. Attorney Fremin stated, “This conviction is another step in dismantling a multi-state criminal organization that brings dangerous drugs to our neighborhoods. This sentence should send a message to those who choose to profit from the dangerous drugs they peddle. Our office will use all federal, state, and local resources available to remove such criminals from our streets.”
FBI Special Agent in Charge Eric Rommal stated, "Our main focus throughout this joint investigation was to identify, disrupt, and dismantle all echelons within Arthur Johnson’s drug enterprise. This was a shining example of great teamwork and precision between our federal, state, and local partners, as well as our federal prosecutors in the U.S. Attorney’s Office. The residents of Ascension Parish can rest assured their community is safer today now that Arthur Johnson and his lieutenant Kenneth Robertson are in prison."
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This OCDETF operation was investigated by the FBI Baton Rouge Capitol Area Gang Task Force, which is an FBI Safe Street Task Force that includes the East Baton Rouge Sheriff’s Office and Baton Rouge Police Department, with assistance from the Ascension Parish Sheriff’s Office, the FBI Hattiesburg, Mississippi, Resident Agency, and Hattiesburg, Mississippi Police Department. This matter is being prosecuted by Assistant United States Attorneys Jamie A. Flowers, Jr., J. Brad Casey, and Demetrius Sumner.
Baton Rouge Bookkeeper Sentenced to Federal Prison for Defrauding Baton Rouge Construction CompanyRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Judge Brian A. Jackson sentenced DIANNA CARRINGTON, a.k.a. Deanna Collier, Dianna Collier, and Dee Blackburn, age 41, of Baton Rouge, Louisiana, to 22 months in federal prison following her conviction for wire fraud. The Court further sentenced CARRINGTON to two years of supervised release following her term of imprisonment and ordered $235,869.52 in restitution to J.W. Grand Construction, Inc. (“J.W. Grand”).
In connection with her guilty plea, CARRINGTON, a former bookkeeper and office manager for J.W. Grand admitted to fraudulently diverting at least $235,869.52 from J.W. Grand’s business accounts to her personal checking and credit card account for her own personal use. For example, CARRINGTON admitted to issuing a payment to a hardware and cabinets distributor located in Prairieville, Louisiana, which she falsely represented to be a payment for finish hardware that she, in fact, had not provided and for which said distributor had not submitted an invoice. In fact, CARRINGTON diverted the fraudulent $13,187.48 payment to her personal credit card account.
U.S. Attorney Fremin stated, “Internal theft at any business is a serious problem that threatens the economic security of honest employees and business owners. We take seriously the threat this poses to our business community and the economic impact it has on hardworking families. It took hard work on the part of our prosecutors and the Secret Service to bring this fraudster to justice and I am very proud of their efforts.”
Tara McLeese, Resident Agent in Charge of the Secret Service Office in Baton Rouge stated, “The U.S. Secret Service plays a pivotal role in securing the nation’s critical financial infrastructure. Today’s sentencing is one of many examples of the high priority our office places on protecting the financial security of businesses in our community.”
This matter is being investigated by the Baton Rouge Office of the U.S. Secret Service, and is being prosecuted by Assistant United States Attorney Demetrius Sumner.
Romanian National Sentenced to Federal Prison for ATM Skimming ConspiracyRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced ALEXANDRU-NICUSOR NITA, age 38, a Romanian national residing in New Orleans, Louisiana, to 24 months in federal prison following his conviction of conspiracy to commit bank fraud. The Court also ordered restitution of $149,802.
According to admissions made as part of his guilty plea, NITA and a co-conspirator conspired with others to commit bank fraud. NITA installed ATM skimming devices on ATM machines at several financial institutions around the Baton Rouge area, among other locations in Louisiana. These ATM skimming devices captured the financial information of hundreds of customers using the ATM machines. The stolen bank account information was subsequently encoded onto blank debit cards and gift cards.
NITA also installed overhead cameras on these ATM machines to capture the personal identification numbers (“PIN”) of the customers. The debit cards and gift cards were used by others, in combination with the corresponding PIN access codes, to make unauthorized withdrawals from the victims’ bank accounts, including at financial institutions in the Baton Rouge area.
U.S. Attorney Fremin stated, “The theft of personal financial information is a serious problem which threatens our citizens’ security. Our office will prosecute these matters vigorously to protect innocent victims from this terrible crime. The efforts of our prosecutors, along with federal and local law enforcement, were invaluable in bringing these foreign nationals to justice.”
Tara McLeese, Resident Agent in Charge of the Secret Service Office in Baton Rouge stated, “This case was investigated by members of the United States Secret Service Financial Crimes Task Force.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Secret Service, East Baton Rouge Parish Sheriff’s Office, Financial Crimes Unit, Gonzales Police Department, and St. John the Baptist Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Brad Casey.
Felon in Possession of a Firearm and Ammunition Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelly D. Dick sentenced ADAM C. METEVIA, a 22 year-old resident of Baton Rouge, to 27 months in federal prison following his conviction of possessing a firearm and ammunition by a convicted felon. The Court further sentenced METEVIA to 3 years of supervised release following his term of imprisonment and also ordered that the firearm and ammunition possessed by METEVIA be forfeited.
On November 14, 2017, Baton Rouge Police Department responded to a McDonalds near the corner of Scenic Hwy. and Harding Blvd. in Baton Rouge, Louisiana. A complainant advised that METEVIA entered the McDonalds, walked behind the counter to the kitchen area, and raised up his shirt, exposing a handgun tucked into his waistband. When the BRPD officers arrived at the McDonalds, they observed a male, later identified as METEVIA, matching the description of the suspect in possession of a large revolver. Upon apprehension, officers retrieved the firearm and also discovered twenty-one rounds of .ammunition in his pockets. METEVIA was previously convicted in East Baton Rouge Parish of possession of a Schedule II controlled substance, a felony.
U.S. Attorney Fremin stated, “Firearms in the hands of convicted felons will not be tolerated in this jurisdiction. I want to thank my prosecutors, the ATF, and the Baton Rouge Police Department for bringing this defendant to justice.”
ATF Resident Agent-in-Charge Antonio L. Pittman stated, “The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with our Federal, State, and Local Law enforcement partners continue to serve our communities by focusing our efforts on removing armed, violent offenders from our streets. We work diligently to protect our citizens by presenting relevant investigative work to our Middle District of Louisiana U.S. Attorney’s Office for federal prosecution.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Brad Casey.
Felon in Possession of a Firearm Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelly D. Dick sentenced DEMARCUS FLEMING, a 38 year-old resident of Baton Rouge, to 115 months in federal prison following his conviction of possessing a firearm by a convicted felon. The Court further sentenced FLEMING to 3 years of supervised release following his term of imprisonment and ordered that the firearm be forfeited.
On July 5, 2017, East Baton Rouge Parish Sheriff’s Deputies responded to a “disturbance with shots fired,” at a residence in Baton Rouge, Louisiana. As they did so, the deputies, via their investigation, determined that FLEMING possessed the firearm which they located on the ground in front of the residence. FLEMING was previously convicted in East Baton Rouge Parish of possession of cocaine and attempted possession of a firearm, felony offenses. The Court stated in part for the reasoning, “The Court has an absolute obligation to protect the community and, based on your drug use and behavior in the past, it is not a stretch for the Court to find that you pose a serious risk to the public.”
U.S. Attorney Fremin stated, “Our office works hard to keep firearms out of the hands of convicted felons, and this is an example of what can be achieved when federal, state, and local agencies work together. I want to thank our prosecutors, the ATF, and the East Baton Rouge Sheriff’s Office for their efforts.”
ATF Resident Agent-in-Charge Antonio L. Pittman stated, “The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with our Federal, State, and Local Law enforcement partners continue to serve our communities by focusing our efforts on removing armed violent offenders from our streets. We work diligently to protect our citizens by presenting relevant investigative work to our Middle District of Louisiana U.S. Attorney’s Office for federal prosecution. The arrest and prosecution of Mr. Fleming is one example of the great work we are doing in our district.”
“This indictment is one example of the collaboration of local, state and federal agencies to get dangerous criminals and weapons off our streets. The EBR Sheriff's Office is committed to continuing to work with all our law enforcement counterparts to ensure the safety of our residents. I'm grateful to the U.S. Attorney's Office for their hard work and dedication in prosecuting these cases that our agents have worked so hard to develop,” stated EBR Sheriff Sid Gautreaux.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the East Baton Rouge Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Michael Jefferson.
Illegal Alien Sentenced to Federal Prison for Sexual Exploitation of a Minor and Possession of Child PornographyRead the Press Release
United States Attorney Brandon J. Fremin announced that, U.S. District Judge Brian A. Jackson sentenced VICTOR ZELAYA-FUNEZ, age 38, a Honduran national residing in Zachary, Louisiana, to 185 months in federal prison following his convictions for sexual exploitation of a minor and possession of child pornography. The Court further sentenced ZELAYA-FUNEZ to 5 years of supervised release following his term of imprisonment. The Court also ordered that the electronic devices used to facilitate his crimes be forfeited.
Following a three-day trial in June of this year, a jury unanimously found ZELAYA-FUNEZ guilty of sexual exploitation of a minor and possession of child pornography. The evidence at trial demonstrated that ZELAYA-FUNEZ possessed sexually explicit photos of the victim, and attempted to coerce the victim into creating additional sexually explicit videos and sending them to him. In private messages he sent to the victim, ZELAYA-FUNEZ threatened to tell the victim’s parents about sexually explicit images of her which he possessed if she did not comply with his demands for additional sexually explicit material. In other private messages, the defendant told the victim he cared for her and promised to provide her with various things of value in exchange for additional sexually explicit material.
United States Attorney Fremin stated, “This prosecution and sentence should send a strong message that we will go to great lengths to protect our communities from child predators and those who attempt to exploit children. I am very proud of the hard work and collaboration by our partners at the Department of Homeland Security, the East Baton Rouge Sheriff’s Office and the East Baton Rouge District Attorney’s Office.”
This case is part of Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This investigation was conducted by the United States Department of Homeland Security, Homeland Security Investigations and Enforcement Removal Operations, and the East Baton Rouge Parish Sheriff’s Office, with assistance from the East Baton Rouge Parish District Attorney’s Office. The matter was prosecuted by Assistant United States Attorney Rene I. Salomon, who serves as the office’s Chief of the Criminal Division and former Assistant United States Attorney Ryan Rezaei.
Ascension Parish Drug Dealer Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge Brian A. Jackson sentenced ARTHUR JOHNSON, JR. a/k/a “Nelson Howard,” “Wood,” and “Dread,” age 42, of Gonzales, to 116 months in federal prison following his convictions of conspiracy to distribute and possession with intent to distribute cocaine, cocaine base, and heroin and unlawful use of a communications facility. The Court further sentenced JOHNSON to5 years of supervised release following his term of imprisonment. JOHNSON was also ordered to forfeit $109,000.
JOHNSON was charged as a result of an extensive federal, state, and local investigation aimed at a drug trafficking network based in Ascension Parish and covering Louisiana, Texas, and Mississippi. The drug trafficking organization, led by JOHNSON, distributed multi-kilogram quantities of cocaine, crack cocaine, and heroin in and around Hattiesburg, Mississippi and Ascension Parish Louisiana.
Throughout the period of the conspiracy, JOHNSON was the organizer and leader of a drug trafficking organization consisting of more than five participants. Under JOHNSON’s leadership, JOHNSON’s drug trafficking organization was responsible for the distribution of multi-kilogram quantities of cocaine, crack cocaine, and heroin in and around Hattiesburg, Mississippi, and Ascension Parish, Louisiana. JOHNSON used public and private places and cell telephones to arrange and carry out the exchange of cocaine, crack cocaine, heroin, and the proceeds from the sales thereof.
U.S. Attorney Fremin stated, “This conviction and sentence highlights our commitment to working with state and local law enforcement to remove dangerous criminals from our streets. It will continue to be a top priority for our office to prosecute organized drug dealers and disrupt and dismantle their organizations. I want to thank our prosecutors, the FBI Baton Rouge Area Gang Task Force, the East Baton Rouge Sheriff’s Office, the Ascension Parish Sheriff’s Department, and the Baton Rouge Police Department.”
FBI Special Agent in Charge Eric Rommal stated, “The reign and terror of Arthur Johnson and his fellow co-conspirators ended today due to the hard work and dedication of all federal, state, and local law enforcement agencies involved in this multi-state narcotics investigation. Their tireless efforts led to the removal of large amounts of crack cocaine, cocaine, and heroin, from Ascension Parish and surrounding areas which prevented countless overdose deaths.”
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This OCDETF operation was investigated by the FBI Baton Rouge Capitol Area Gang Task Force, which is an FBI Safe Street Task Force that includes the East Baton Rouge Sheriff’s Office and Baton Rouge Police Department, with assistance from the Ascension Parish Sheriff’s Office, the FBI Hattiesburg, Mississippi, Resident Agency, and Hattiesburg, Mississippi Police Department. This matter is being prosecuted by Assistant United States Attorney Jamie A. Flowers, Jr.
Florida Man Sentenced to Federal Prison for Failing to Register as a Sex OffenderRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that U.S. District Judge John W. deGravelles sentenced HENRY ALLEN FOWLER, age 52, of Florida, to 24 months in federal prison following his conviction for failing to register in Louisiana as a sex offender. The Court also sentenced FOWLER to five years of supervised release following imprisonment.
In 2004, FOWLER was convicted of a sexual offense in the State of Florida. As a result of this conviction, FOWLER was classified as a Tier III sex offender, and was required to register as a convicted sex offender for life, which registration must be updated quarterly. FOWLER last registered with the State of Ohio and indicated that he resided in Akron, Ohio. FOWLER was due to update his registration in Ohio in March 2018, but failed to do so. As a result of this failure, a State warrant was issued for FOWLER’s arrest in Ohio.
The defendant left Ohio and eventually moved to Baton Rouge, Louisiana. Shortly thereafter, law enforcement officers conducted a routine traffic stop of a vehicle in which FOWLER was a passenger. During this traffic stop, law enforcement officers learned that FOWLER had a warrant for his arrest from the State of Ohio. At the time of this encounter, the defendant had been residing in Baton Rouge, Louisiana, but he had not updated his registration in Ohio or registered in Louisiana.
U.S. Attorney Fremin stated, “We take seriously our obligation to make our communities safer and will not tolerate unregistered sex offenders crossing state lines and concealing prior criminal behavior in order to avoid their notification responsibilities. I want to thank our prosecutors and the United States Marshal Service for bringing this offender to justice.”
“The U.S. Marshals Service is committed to ensuring convicted sex offenders comply with their registration requirements and keeping our community safe. As in this case, working together with all levels of law enforcement is a key component in that effort. When offenders like Fowler travel across state lines and try to avoid registering, we will not stop searching for them until they are in handcuffs,” Acting United States Marshal Randy L. Breckwoldt stated.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the United States Marshals Service with substantial assistance from the Baton Rouge Police Department. It is being prosecuted by Assistant United States Attorney Jamie Flowers.
Former Insider Convicted of Defrauding Baton Rouge CompanyRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced KATHERINE T. CANCIENNE, age 41, of Baton Rouge, Louisiana, to 28 months in federal prison following her conviction for wire fraud. CANCIENNE was also ordered to pay $387,025.75 in restitution to Engineers & Constructors International, Inc. (“ECI”).
CANCIENNE, who formerly handled accounting matters at ECI, admitted in connection with her guilty plea, to executing a fraud scheme by, among other things, establishing a shell corporation and bank account under the name Cappo, LLC, which had a similar name to an actual ECI vendor. The defendant admitted further to causing ECI to issue checks and make electronic wire payments to her shell corporation by creating and submitting false and fraudulent documents to ECI. As a result of this scheme, the defendant obtained nearly $400,000.
U.S. Attorney Fremin stated, “My office will continue to aggressively pursue those who use their positions of trust and skill to steal from their employers. Such betrayal often risks the financial livelihoods of their co-workers and may threaten the financial integrity of their employers. I am proud of our prosecutors and the special agents from the United States Secret Service who worked on this very important matter.”
Tara McLeese, Resident Agent in Charge of the Secret Service Office in Baton Rouge stated, “Since 1865, the United States Secret Service (USSS) has been tasked with protection of the nation's financial service infrastructure. Through aggressive investigation and collaboration with our partners in the United States Attorney’s Office, Agents in the Baton Rouge Resident Office were able to bring this case to a successful ending. The Secret Service remains committed to addressing the financial crimes that victimize our country’s citizens and financial institutions.”
This matter is being investigated by the Baton Rouge Office of the U.S. Secret Service, and is being prosecuted by Assistant United States Attorney Pete Smyczek.
Baton Rouge Man Sentenced to Federal PrisonRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced THANH TRAN, age 41, of Baton Rouge, Louisiana, to 40 months in federal prison for possession with intent to distribute marijuana, and an additional 24 months for a 2008 conviction for conspiracy to distribute MDMA from which he was on supervised release.
In September 2017, Baton Rouge Police Department (“BRPD”) narcotics detectives received information that TRAN was involved in the distribution of controlled substances. On September 14, 2017, BRPD narcotics detectives conducted surveillance of TRAN at an apartment complex in Baton Rouge. They observed TRAN place two large black trash bags in the back of his BMW SUV and then drive away. When TRAN began driving erratically, the BRPD officers conducted a traffic stop in the 11300 block of Archery Drive in Baton Rouge.
TRAN told the BRPD officers that he had 15 lbs. of marijuana in his vehicle. When the officers searched the BMW SUV, they found approximately 30 lbs. of suspected marijuana and about $10,000 cash in the vehicle. The officers also found approximately $5,000 cash in TRAN’s pockets.
At the time of his arrest, TRAN was on supervised release from a previous federal conviction of conspiracy to distribute MDMA.
U. S. Attorney Fremin stated, “This prosecution is part of this office’s fight against habitual drug dealers and our efforts to keep our community free from illegal drugs. I congratulate our prosecutors, the Drug Enforcement Administration, and the Baton Rouge Police Department for their successful investigation and prosecution.”
This matter was investigated by the Drug Enforcement Administration and the Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Brad Casey.
Louisiana Physician's Assistant Pleads Guilty to Scheme to Unlawfully Distribute Controlled SubstancesRead the Press Release
WASHINGTON – A Baton Rouge, Louisiana-based physician’s assistant pleaded guilty today for his role in a scheme to unlawfully distribute thousands of oxycodone pills.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, Special Agent in Charge Stephen G. Azzam of the U.S. Drug Enforcement Administration (DEA)’s New Orleans Field Division, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office and Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office made the announcement.
Christopher William Armstrong, 44, of Prairieville, Louisiana, was charged in a June indictment with conspiracy to distribute oxycodone, a Schedule II controlled substance. Armstrong pleaded guilty before U.S. District Judge John W. deGravelles of the Middle District of Louisiana, who accepted his plea today.
“Christopher Armstrong abused his position as a licensed physician’s assistant to create fraudulent prescriptions for over 40,000 medically unnecessary oxycodone pills,” said Assistant Attorney General Benczkowski. “The Department of Justice will continue to combat the opioid crisis by holding to account corrupt medical professionals who distribute illegal prescription opioids for profit.”
“This conviction is a signal to medical professionals not to abuse your position and put our community at risk,” said U.S. Attorney Fremin. “We will not tolerate unscrupulous health care workers increasing the supply of unauthorized prescription drugs on our streets. I want to thank our prosecutors, the Department of Justice’s Medicare Fraud Strike Force, DEA, HHS-OIG, and FBI for their important work on this case.”
According to admissions made as part of his plea agreement, Armstrong was a licensed physician’s assistant employed by Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge, from approximately August 2004 through January 2014. Armstrong admitted that he logged into the clinic’s computer system and, without authorization, created fraudulent prescriptions for controlled substances such as oxycodone. He then printed the fraudulent prescriptions and either forged the signatures of the clinic’s physicians on the prescriptions or caused those physicians to unknowingly sign the prescriptions. Armstrong further admitted that he distributed the fraudulent prescriptions to co-conspirators, who he instructed to fill the prescriptions at pharmacies and return the controlled substances to him in return for cash payments. Armstrong admitted that in an effort to conceal the scheme, he deleted records of the fraudulent prescriptions from the clinic’s computer system. As part of his plea, Armstrong admitted that from approximately May 2009 through March 2014, he fraudulently generated prescriptions for at least 40,470 oxycodone pills.
DEA, HHS-OIG, and FBI investigated the case. The investigation was further developed by the East Baton Rouge District Attorney’s Office. Trial Attorneys Katherine Payerle and Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Demetrius D. Sumner of the Middle District of Louisiana are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Honduran National Pleads Guilty to Transporting Illegal AliensRead the Press Release
BATON ROUGE - U.S. Attorney Brandon J. Fremin announced today that GERSON GARCIA-VILLANEUVA, age 19, of Honduras, pled guilty for his role in transporting illegal aliens.
On August 21, 2018, U.S. Border Patrol Agents conducted a traffic stop in Baton Rouge, Louisiana, of a van driven by GARCIA-VILLANEUVA. GARCIA-VILLANEUVA admitted that he, as is a citizen of Honduras, was knowingly present in the United States illegally. He further explained that he was paid to transport eight illegal aliens from various Latin American countries from Houston, Texas to New Orleans, Louisiana.
U.S. Attorney Brandon J. Fremin stated, “The enforcement of our border and immigration laws is a top priority for our office. This plea is yet another step in the fight against illegal immigration and those who enable it. I want to thank our prosecutors and the United States Border Patrol for their efforts in this important matter.”
“This case highlights the superlative work done by Border Patrol Agents, Homeland Security Investigations, and the US Attorney’s Office as we work together to enhance border security in the Gulf Coast Region by disrupting and destroying smuggling operations which cause irreparable harm to our nation,” stated Chief Patrol Agent Gregory K. Bovino, New Orleans Border Patrol Sector.
This matter is being investigated by the U.S. Immigration and Customs Enforcement, and is being prosecuted by Assistant United States Attorney Fred Menner.
Gonzales Woman Sentenced to Federal Prison for Theft of Government FundsRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that U.S. District Judge John W. deGravelles sentenced KRISTIAN H. JAMES, age 31, of Gonzales, Louisiana, to 24 months in federal prison following her conviction for theft of government funds. The Court also sentenced JAMES to 2 years of supervised release following imprisonment and ordered restitution of $141,458.
Between October 2010 and December 2014, JAMES knowingly allowed her social security number to be used in a large scheme to fraudulently obtain financial aid from the United States Department of Education. During this period, JAMES also stole personal information of unknowing victims whose information was then used by co-conspirators as part of the aforementioned fraud scheme. In announcing the sentence, Judge deGravelles highlighted the impact that JAMES’ conduct had on the identity theft victims, and, in particular, one who detailed for the Court the numerous problems she has encountered and continues to encounter as a result of JAMES stealing her identity.
U.S. Attorney Fremin stated, “This conviction and sentence highlight that prosecuting fraudsters and identity thieves will remain a priority of this office. The cowardly act of using personal identifying information of unassuming victims will not go unchecked on our watch. I'm grateful for the hard work of our prosecutors and the investigative work and support provided by the US Department of Education - OIG whose efforts were essential in obtaining justice in this case."
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the U.S. Department of Education – OIG. It is being prosecuted by Assistant United States Attorney Paul Pugliese.
Baton Rouge Doctor Pleads Guilty to Conspiring to Receive Health Care Kickback PaymentsRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that GRAY WESLEY BARROW, age 58, of Baton Rouge, Louisiana, pled guilty for his role in a scheme to receive approximately $336,000 in illegal health care kickback payments. As a result of his conviction, BARROW faces a significant term of imprisonment, restitution and fines, and a period of supervised release.
BARROW was a co-owner of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge. According to plea documents, the charge stems from BARROW’s role in agreeing to send urine specimens collected from his patients to a drug testing laboratory in return for a percentage of the reimbursements paid to the laboratory by health care benefit programs, including Medicare. In a hearing before U.S. District Judge Brian A. Jackson, BARROW admitted that from approximately April 2014 through July 2016, he sent specimens collected from his patients to the drug testing laboratory and received approximately $336,000 in disbursements from the laboratory associated with testing for Medicare beneficiaries.
U.S. Attorney Fremin stated, “This plea is a product of the hard work our office, in coordination with the Department of Justice Fraud Division, Health and Human Services-Office of Inspector General, and the Federal Bureau of Investigation have put in to bring Medicare Fraud participants to Justice. It is especially egregious when medical doctors violate their position of trust in the community and the Medicare system to enrich themselves. I want to thank the Department of Justice Fraud Division, the FBI, and Health and Human Services - Office of Inspector General for their efforts in this case.”
“Any time greed replaces medical judgment as the motivating factor behind medical procedures, our country’s citizens and health insurance programs suffer,” said Special Agent in Charge C.J. Porter of the United States Department of Health and Human Services - Office of Inspector General’s Dallas Regional Office. “This office will continue the important mission of protecting the financial integrity of our nation’s health care systems and ensuring that medical providers are rendering legitimate medical services, and will identify and bring to justice those who deliberately manipulate federally funded health insurance programs to obtain Medicare or Medicaid dollars to which they are not entitled.”
Eric J. Rommal, Special Agent in Charge of the New Orleans Division of the Federal Bureau of Investigation, stated, “The Federal Bureau of Investigation continues to be dedicated to eliminating health care fraud in Louisiana and nationwide. This case serves as a testament to the tenacity and perseverance of Agents of not only the FBI, but also our partners in the Department of Health and Human Services - Office of the Inspector General, when investigating a complex and long-term fraud scheme. It is our hope that this case will serve as a lesson to medical professionals everywhere that those committing health care fraud in any capacity will be thoroughly investigated and recommended for prosecution.”
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 14 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
This matter is being handled by the Justice Department’s Criminal Division, U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Department of Health and Human Services - Office of Inspector General’s (HHS-OIG) Dallas Field Office, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White.
Mandeville Financial Adviser Sentenced for Stealing $1.1 Million from Elderly InvestorsRead the Press Release
United States Attorney Brandon J. Fremin announced yesterday the sentencing of a Mandeville investment adviser who stole more than $1.1 million from elderly investors in a widespread investment fraud scheme.
On November 13, 2018, RALPH WILLARD SAVOIE, age 71, of Mandeville, Louisiana, was sentenced by U.S. District Judge Shelly D. Dick. SAVOIE had previously been convicted of wire fraud. As a result of his conviction, SAVOIE was sentenced to a term of 168 months imprisonment, restitution to victims in the amount of $1,143,965, forfeiture of $1,134,070, and a 3 year term of supervised release following imprisonment. Savoie was immediately remanded to the custody of the Bureau of Prisons to begin his 168 month sentence of imprisonment.
As SAVOIE acknowledged in court during his guilty plea and at his sentencing hearing, from in or about January 2013 through at least March 2016, he executed a scheme to defraud victim investors by means of materially false and fraudulent pretenses, promises, and representations. SAVOIE told his victim investors that he would invest their funds in securities and insurance, and described the investment opportunities as a “sure thing.” SAVOIE also guaranteed the victim investors high rates of return. However, instead of investing the funds as promised, SAVOIE spent the victim investor funds on jewelry, hotels, and restaurants, and withdrew the funds in cash. SAVOIE also used victim investor funds to pay his credit card bills and rent and to pay off other victim investors who had previously invested their money with him.
Towards the end of SAVOIE’s fraudulent scheme, a victim investor confronted SAVOIE about his investment. SAVOIE admitted to the victim investor that what he did with the victim investor’s money was illegal. Despite admitting his criminal conduct, SAVOIE later told the victim investor that he would never see his money returned if he reported the matter to law enforcement. SAVOIE also concealed from victim investors that the Financial Industry Regulatory Authority, an organization dedicated to market integrity and investor protection, had barred him from acting as a broker or otherwise associating with firms that sell securities to the public. During his guilty plea, SAVOIE admitted that he stole up to $1.5 million from investors.
U.S. Attorney Fremin stated, “This conviction and sentence sends a loud and clear message – those who abuse their fiduciary responsibilities and take advantage of the elderly in this district will face the full might of the federal government. We will not tolerate corrupt professionals who abuse positions of trust and exploit vulnerable individuals simply to enrich themselves. I greatly appreciate the efforts of our prosecutors and the agents with IRS-CI, the Louisiana Office of Financial Institutions, and the Louisiana Bureau of Investigation who collaborated on this very important matter.”
IRS-CI Acting Assistant Special Agent In Charge Demetrius Hardeman stated, “Trust in the fair and equitable operation of our financial markets is the foundation of a free economy. Ralph Savoie received the court’s punishment for his abuse of honest investors seeking to leverage the market, and must now spend the next 14 years in prison paying for his wrongdoings. The Special Agents of IRS-CI are proud of the work we have done in this investigation, and will continue our efforts toward maintain the integrity of the country’s financial markets.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Internal Revenue Service Criminal Investigation Division, with the assistance of the Louisiana Office of Financial Institutions and the Louisiana Bureau of Investigation, a section of the Louisiana Department of Justice. It is being prosecuted by Assistant United States Attorney Rene Salomon, who also serves as the Chief of the Criminal Division.
Former Major at Angola Prison Convicted of Beating a Handcuffed and Shackled InmateRead the Press Release
Daniel Davis, 41, a former Major at Louisiana State Penitentiary (LSP) in Angola, Louisiana, was found guilty by a jury today in federal court for beating an inmate who was handcuffed, shackled, and not resisting. In a previous trial in January, Major Davis was convicted of conspiring with other officers to cover up the beating by devising a false cover story, submitting false reports documenting that cover story, tampering with witnesses, and lying under oath. Four other officers—former Captains James Savoy, John Sanders, and Scotty Kennedy, and former Sergeant Willie Thomas—have all previously pleaded guilty for their roles in the beating and cover up. At Davis’s trial, Captains Sanders and Kennedy testified for the government and described the abuse and the extensive cover up.
After hearing testimony over the course of three days, the jury convicted Davis of willfully depriving the inmate of his right to be free from cruel and unusual punishment. The evidence showed that Davis initiated the beating by yanking the inmate’s leg chains, causing the inmate to fall face-first onto the concrete breezeway. At that point, Davis and the other officers punched, kicked, and stomped on the inmate, leaving the inmate with a bloody gash under his eye, a dislocated shoulder, broken ribs, and a collapsed lung.
“Mr. Davis abused the justice system by beating an inmate, writing false reports, and using his influence and power as a corrections officer to encourage others to lie,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Justice Department will continue to prosecute correctional officers who violate federal criminal law.”
“Our office is committed to protecting the civil rights of all citizens and ensuring that government employees in positions of authority don’t abuse that authority,” said U.S. Attorney Brandon J. Fremin. “I want to thank the Civil Rights Division of the Department of Justice, the FBI, and the Louisiana Office of Inspector General for their work on this matter. “
"Charged with protecting the civil rights of others, to include those in custody, is a responsibility the FBI takes very seriously,” said Eric J. Rommal, FBI New Orleans Special Agent in Charge. “Law enforcement officers and correctional officers acting under the color of law must ensure a person's civil rights are not violated. The jury's decision today reinforces the FBI's commitment that civil rights and color of law violations will not be tolerated.”
“Corrections officers are given great authority and power in our system because public safety depends on them doing their jobs well,” said Louisiana Inspector General Stephen Street. “When those corrections officers commit crimes by choosing to abuse their power, as defendant Davis did in this case, they must be held accountable, or public trust in the system suffers. The jury’s guilty verdict should send a clear message that we have zero tolerance for it and will continue to aggressively pursue these cases whenever and wherever they may arise. I wish to thank the FBI, United States Attorney Brandon Fremin and the prosecutors from the DOJ Civil Rights Division for their outstanding work on this case.”
No date has been set for Davis’s sentencing. He faces a maximum penalty of five years of imprisonment on the conspiracy and perjury counts, 10 years of imprisonment on the excessive force count, and 20 years of imprisonment on each of the remaining obstruction counts.
This case was investigated by the FBI’s Baton Rouge Resident Agency Office and the Louisiana Office of the State Inspector General. The case was tried by Trial Attorneys Christopher J. Perras and Zachary Dembo of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Frederick A. Menner, Jr., of the Middle District of Louisiana.
Baton Rouge Man Indicted for International Money Laundering in Furtherance of International Drug Conspiracy, Operating an Unlicensed Money Transmitting Business, and Related ChargesRead the Press Release
A federal grand jury recently returned a five-count indictment charging DONOVAN J. BARKER, age 59, of Baton Rouge, Louisiana, with aiding and abetting a conspiracy to distribute tramadol and carisoprodol, international money laundering, unlawful money transmitting, and possession of tramadol. On October 25, 2018, BARKER made his initial appearance in court and pled not guilty to the pending charges.
According to the indictment, BARKER owned and operated several businesses, including Quantum Information Technologies, Caring Partners 1, LLC, Don Western Sky, LLC, Life Positive Services, LLC, and Healthy Life 1, LLC. The indictment alleges that although BARKER represented that his businesses sold and distributed green tea extracts and herbal supplements, he was actually working with others to import Schedule IV controlled substances into the United States, to re-package and distribute the controlled substances to individuals within the United States who had purchased the substances online, to accept payments from the individual buyers, and to transmit funds from the sales to others operating outside the United States. In addition to charging BARKER with aiding and abetting a conspiracy to distribute controlled substances, the indictment charges BARKER with engaging in international financial transactions to promote the conspiracy, by wiring funds from his business bank accounts in Baton Rouge to India.
The indictment also charges BARKER with illegally operating an unlicensed money transmitting business. According to the indictment, from October 2012 through February 2016, BARKER received more than $4.6 million in payments—including payments by money order, personal check, and credit card —from individuals all across the United States who had purchased controlled substances and other substances over the internet and who directed their payments to BARKER. As BARKER received the funds, he wired the majority of the funds out to other individuals and businesses, including, on more than two hundred (200) different occasions, to foreign bank accounts in the Philippines, India, China, and Canada. Through this pattern of activity, according to the indictment, BARKER was operating a money transmitting business without an appropriate state license and without complying with the applicable federal registration requirements.
Finally, the indictment alleges that on May 24, 2016, BARKER knowingly and intentionally possessed tramadol, a controlled substance, in violation of federal law.
U.S. Attorney Brandon J. Fremin stated, “This indictment demonstrates the lengths to which international drug traffickers will go to deliver drugs and the efforts my office will make to stop them. We are committed to eliminating the international financial network used by drug dealers to bring drugs to our country and launder their illegal proceeds. I want to thank our prosecutors and our federal, state, and local partners for their extraordinary efforts in this case.”
“The Special Agents of IRS – Criminal Investigation are an integral part of drug investigations that involve the laundering of money through sophisticated means such as those implemented by Donovan Barker,” stated Thomas J. Holloman, III, Special Agent in Charge of IRS – Criminal Investigation. “More and more often individuals are using the internet and access to international banks to keep their misdeeds hidden from the eyes of law enforcement. However, the dissection of international money laundering schemes is an area of expertise in which IRS- CI excels. It is our hope that Barker’s drug distribution and money laundering conspiracy was thwarted by his indictment, and now we will continue working to ensure that Barker receives justice for what we believe are his illegal actions.”
“The DEA is committed to arresting and bringing to justice those who divert and traffic prescription drugs,” said Acting Special Agent in Charge Michael Arnett. “Opiate abuse is a major problem in the Baton Rouge area and throughout the nation. The diversion of prescription pain killers contributes to the widespread abuse of opiates, which is devastating our communities. This investigation demonstrates the strength of collaborative law enforcement efforts in this area and our strong partnership with the U.S. Attorney’s Office to aggressively pursue anyone that illicitly distributes these drugs.”
This matter is being investigated by the Internal Revenue Service-Criminal Investigations, the Drug Enforcement Administration, and the U.S. Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Criminal Chief within the Criminal Division. The investigation received valuable assistance from the Iberia Parish Sheriff’s Office, Iberville Parish Sheriff’s Office, Plaquemine Police Department, East Baton Rouge Parish Sheriff’s Office, Baton Rouge Police Department, U.S. Immigration and Customs Enforcement—Homeland Security Investigations, the Louisiana Office of Financial Institutions, and the Louisiana State Police.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Justice Department Election Day ProgramRead the Press Release
United States Attorney Brandon J. Fremin announced today that the United States Attorney’s Office and the local Office of the FBI, in consultation with Justice Department Headquarters, are prepared to receive and review allegations of election fraud and voting rights abuses related to the upcoming November 6, 2018, general election.
The Justice Department’s Election Day Program seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, submission of fraudulent votes, and voting for another person against his wishes or without his input. The law contains special protection for the rights of voters. Voters have a right to cast their own votes or to be assisted by a person of their choice. Additionally, voters have a right to vote free from acts of intimidation or harassment. For example, actions designed to intimidate or interrupt voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting, may violate federal voting rights law.
To report suspected election fraud or interference with the right to vote, members of the public can contact the United States Attorney’s Office at 225-389-0443 or, during polling hours on Election Day, at 225-955-8283. Members of the public can also make such reports to the FBI at 225-291-5159. Additionally, complaints regarding possible violations of voting rights laws can be made directly to the Justice Department’s Voting Section by phone to 800-253-3931 or 202-307-2767, by fax to 202-307-3961, by email to [email protected], or on the Internet at http://www.justice.gov/crt/complaint/votintake/index/php.
United States Attorney Fremin said, “Deeply embedded in our identity as Americans is the bedrock principle that our citizens must be free to exercise the right to vote without fear of interference and to have that vote counted without being compromised. The DOJ and this Office will work tirelessly to protect those principles and to protect our citizens’ voting rights to ensure our process is free from election fraud. Anyone with specific information about fraud, discrimination, or other interference with the integrity of our election process should immediately make that information available to my Office, the FBI or the Civil Rights Division of the DOJ.”
Former Correctional Officer Charged with Assaulting Handcuffed and Shackled Inmate at Elayn Hunt Correctional CenterRead the Press Release
A former correctional officer at Elayn Hunt Correctional Center in St. Gabriel, Louisiana, was indicted today by a federal grand jury on charges of beating a handcuffed and shackled inmate, and conspiring with other officers to cover up their misconduct by falsifying official reports and lying to investigators. Two other correctional officers, Eric Norwood and Charles Philson, have previously pleaded guilty for their roles in the assault of the inmate.
Today’s indictment accuses Adrian Almodovar of federal civil rights, conspiracy, and obstruction violations. According to the indictment, Almodovar and other members of the tactical team assaulted an inmate during the course of a cell extraction, during transportation to the medical unit, and inside the medical unit. The inmate was handcuffed and shackled during the course of the assaults.
It is alleged that the defendants then drafted false reports in which they intentionally omitted that they used force on the inmate. Days after the assault, the defendants met with another officer at the a local restaurant in which they agreed that, if questioned about the assault by investigators, they would stick to the false story they wrote in their reports and claim that they did not use unlawful force.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the Baton Rouge Division of the FBI and the Office of Louisiana Inspector General, and is being prosecuted by Trial Attorneys Christopher J. Perras and Zachary Dembo of the Department’s Civil Rights Division.
Insider Trading Defendant Sentenced to Federal PrisonRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that U.S. District Judge John W. deGravelles sentenced SALVADOR JOSEPH RUSSO, III, age 35, of Baton Rouge, Louisiana, to 16 months in federal prison following his convictions for securities fraud (insider trading) and conspiracy to commit securities fraud. The Court also sentenced RUSSO to 1 year of supervised release following his term of imprisonment.
In May of this year, a jury found RUSSO and his co-defendants guilty as charged in connection with an insider trading scheme related to the 2012 acquisition of the Shaw Group (“Shaw”) by Chicago Bridge and Iron Company (“CB&I”). According to evidence presented at trial, in mid-2012, Shaw was considering a potential merger opportunity. At the time, Kelly Liu was a Shaw employee working in the Financial Planning and Analysis Department. In July 2012, Shaw and CB&I came to an agreement on an offer for CB&I to buy Shaw. This merger between the two companies was publicly announced on July 30, 2012 (“the public announcement”). As a result of the public announcement, Shaw’s stock price rose by around 55 percent.
At the time of the public announcement, RUSSO, a car salesman in Baton Rouge, had been Liu’s boyfriend for several years.
The evidence at trial established that, prior to the public announcement and through her job at Shaw, Liu had obtained inside information that Shaw was going to be acquired by another company and had passed the inside information to Victory Ho, through another individual, and to RUSSO, for their use in trading Shaw stock and options. Thereafter, Victory Ho and RUSSO purchased Shaw stock and options before the public announcement. Through his timely $5,000 purchase of Shaw stock in a family member’s account, RUSSO secured a profit of approximately $4,000.
During the sentencing hearing, the Court found that RUSSO had obstructed justice through his testimony at the trial.
United States Attorney Fremin stated, “The manipulation of our securities market undermines those honest investors who take great care to play by the rules when investing their hard earned income. This sentence should send a clear message to anyone who uses insider trading information that this type of behavior will not be tolerated by my office. I am grateful for the tireless efforts of our prosecutors and law enforcement partners from the FBI, Secret Service, and IRS who worked diligently on this important matter.”
Co-defendant Victory Ho, a Morgan City businessman and associate of RUSSO, was sentenced to 32 months in federal prison last week following his convictions in the same scheme. Victory Ho was also ordered to forfeit over $300,000 and to pay a $15,000 fine.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Baton Rouge offices of the FBI, Secret Service, and IRS-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Chris Dippel and Patricia Jones.
Businessman Sentenced to Federal Prison for Insider Trading in the Shaw GroupRead the Press Release
United States Attorney Brandon J. Fremin announced that on October 24, 2018, U.S. District Judge John W. deGravelles sentenced VICTORY HO, age 39, of Morgan City, Louisiana, to 32 months in federal prison following his convictions for securities fraud (insider trading) and conspiracy to commit securities fraud. The Court further sentenced HO to 2 years of supervised release following his term of imprisonment. HO was also ordered to forfeit over $300,000 and to pay a $15,000 fine.
Following a three week trial in May of this year, a jury found HO and his co-defendants guilty as charged in connection with an insider trading scheme related to the 2012 acquisition of the Shaw Group (“Shaw”) by Chicago Bridge and Iron Company (“CB&I”). According to evidence presented at trial, in mid-2012, Shaw was considering a potential merger opportunity. At the time, Kelly Liu was a Shaw employee working in the Financial Planning and Analysis Department. In July 2012, Shaw and CB&I came to an agreement on an offer for CB&I to buy Shaw. This merger between the two companies was publicly announced on July 30, 2012 (“the public announcement”). As a result of the public announcement, Shaw’s stock price rose by around 55 percent.
The evidence at trial established that, prior to the public announcement and through her job at Shaw, Liu had obtained inside information that Shaw was going to be acquired by another company and had passed the inside information to HO, through another individual, and to Salvador Russo, III (“Russo”), for their use in trading Shaw stock and options. Thereafter, HO and Russo purchased Shaw stock and options before the public announcement. HO sold his Shaw options after the public announcement had caused Shaw’s stock price to rise and reaped almost $300,000 from his illegal insider trading.
During the sentencing hearing, the Court found that HO had obstructed justice through his testimony at the trial.
United States Attorney Fremin stated, “This multi-agency investigation and the resulting sentence should send a strong message to insiders and potential tippees that insider trading will not be tolerated and may very well result in a significant federal prison sentence. This type of crime, which threatens the integrity of financial markets where millions of citizens invest their money, will be aggressively pursued by federal agents and prosecutors across our country. I truly appreciate the efforts of the FBI, IRS-Criminal Investigations, U.S. Secret Service, and the prosecutors and staff within this office, who worked tirelessly to uncover, investigate, and bring this case to trial. I also want to thank the Securities and Exchange Commission for their efforts and for providing one of their financial economist to testify at trial.”
FBI Special Agent-in-Charge Eric J. Rommal stated, "The nation's economy is increasingly dependent on the success and integrity of the securities and commodities markets. White collar crimes like securities market violations cause significant losses each year to the U.S. market. Today, the first of three defendants convicted at trial was sentenced. In an effort to enhance his personal finances, this defendant conspired to manipulate the stock market and take advantage of insider information. The noteworthy sentence handed down today, the announcement made by U.S. Attorney Fremin and the dedicated work by the men and women of the FBI, Secret Service, IRS-CI and Securities and Exchange Commission reinforces our belief in our criminal system that justice will prevail."
“Victory Ho is a prime example of someone who, for his own personal benefit, cheated American taxpayers and investors by using information he received illegally,” said Thomas J. Holloman, III, Special Agent in Charge, IRS – Criminal Investigation. “With both law enforcement and financial investigation expertise, IRS Criminal Investigation special agents are uniquely qualified to assist state and federal law enforcement and other regulatory agencies with these types of cases.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Baton Rouge offices of the FBI, Secret Service, and IRS-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Chris Dippel and Patricia Jones.
Drug Distribution Conspirator Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge Brian A. Jackson sentenced Norberto Aaron Bejarano, age 32, of Houston, Texas, to 33 months in federal prison following his conviction for distribution of 500 grams or more of cocaine. The Court further sentenced BEJARANO to 3 years of supervised release following his term of imprisonment. BEJARANO must also forfeit $69,920 in drug proceeds. Upon release from prison, Bejarano will be removed from the United States and returned to his home country of Mexico.
BEJARANO was charged as a result of an extensive federal, state, and local investigation aimed at a drug trafficking network based in Ascension Parish and covering Louisiana, Texas, and Mississippi. The drug trafficking organization, led by Arthur Johnson (“Johnson”), distributed multi-kilogram quantities of cocaine, crack cocaine, and heroin in and around Hattiesburg, Mississippi, and Ascension Parish Louisiana. BEJARANO assisted the Johnson drug trafficking organization by transporting kilogram quantities of cocaine from Texas to Louisiana for further distribution in and around Ascension Parish, Louisiana, and Hattiesburg, Mississippi, by members of the Johnson drug trafficking organization.
U.S. Attorney Fremin stated, “This is yet another step in reaching our office’s goal of reducing crime and aggressively enforcing federal law. The people of Ascension Parish are better off now that this defendant is off the streets. I am grateful for the hard work and efforts of our prosecutors and many local, state and federal partners who worked tirelessly on this very important matter.”
Eric J. Rommal, FBI New Orleans Special Agent in Charge stated, “I commend the tremendous efforts put forth by the FBI Baton Rouge Resident Agency Office, Ascension Parish Sheriff's Office, the East Baton Rouge Sheriff’s Office and the Baton Rouge Police Department in removing a significant amount of illegal narcotics from our streets. Through their persistence to identify, track, and apprehend drug traffickers in South Central Louisiana, our children and families have a safer community."
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This OCDETF operation was investigated by the FBI Baton Rouge Capitol Area Gang Task Force, which is an FBI Safe Street Task Force that includes the East Baton Rouge Sheriff’s Office and Baton Rouge Police Department, with assistance from the Ascension Parish Sheriff’s Office, the FBI Hattiesburg, Mississippi, Resident Agency, and Hattiesburg, Mississippi Police Department. This matter is being prosecuted by Assistant United States Attorney Jamie A. Flowers, Jr.
Baton Rouge Man Pleads Guilty to Illegal Possession of FirearmsRead the Press Release
United States Attorney Brandon J. Fremin announced today that, LESTER DESMOULIN, age 31, of Baton Rouge, Louisiana, pled guilty to one count of possession of firearms by a convicted felon. As a result of his conviction, DESMOULIN faces a significant term of imprisonment, fine, and a period of supervised release.
In the hearing before Chief U.S. District Judge Shelly D. Dick, DESMOULIN pled guilty to possession of a Glock 9mm semiautomatic pistol after having been convicted of three felony offenses between 2006 and 2016. His prior offenses include aggravated assault with a firearm and possession of controlled substances on two separate occasions, with all three resulting in felony convictions in the 19th Judicial District Court for the Parish of East Baton Rouge.
During the plea hearing DESMOULIN admitted that on July 31, 2017, defendant’s friend, Terrance Thornton, had hidden a Glock 9mm semi-automatic pistol at a private residence in Baton Rouge just prior to being arrested that day. Shortly after his arrest, Thornton contacted DESMOULIN via a jail call and directed DESMOULIN to go to the residence where he had earlier hidden the pistol and retrieve it. DESMOULIN then went to the residence in Baton Rouge and took possession of the Glock pistol. Thornton had previously pled guilty to being a convicted felon in possession of a firearm and, on October 10, 2018, was sentenced by U.S. District Judge John W. deGravelles to serve 10 years in federal prison.
U.S. Attorney Fremin stated, “The investigation of this offense, which involved a collective effort by several of our Violent Crime Strike Force partners, and the resulting conviction of DESMOULIN, highlights our effort to pursue offenders who have previously committed serious crimes and continue to engage in such conduct. Our collective efforts also reflect our continuing commitment to keep our community safe.”
“ATF, along with our state, local, and federal partners, will continue to focus our efforts on the disruption of violent crime in our community through the arrest and prosecution of Lester DESMOULIN and other violent criminals just like him”’ said ATF New Orleans Special Agent in Charge Dana Nichols. “Keeping our communities safe is a priority for all of law enforcement.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department, with substantial assistance from the Louisiana State Police Crime Laboratory and Fugitive Task Force. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Member of Large Drug Trafficking Organization Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced JERMAINE CHRISTOPHER PLEASANT a.k.a. “Plat Plat,” age 36, of Donaldsonville, Louisiana, to 80 months in federal prison following his convictions for conspiracy to distribute and possess with the intent to distribute heroin and unlawful use of communications facilities. The Court further sentenced PLEASANT to 5 years of supervised release following his term of imprisonment.
PLEASANT was charged in an extensive federal, state, and local investigation aimed at dismantling a large scale heroin trafficking network based in Ascension Parish, Louisiana, and Houston, Texas. The indictment charges significant drug trafficking, racketeering, firearm, and conspiracy charges. To date, investigative efforts have resulted in the seizure of over one and a half kilograms of heroin, substantial amounts of methamphetamine, crack cocaine, and oxycodone. Authorities have also seized seven firearms, over $314,000 in drug proceeds, and three vehicles allegedly used in the drug trafficking venture: a 2013 Porsche 911, a Mercedes CLS550, and a GMC Hummer.
From September 22, 2015 to April of 2016, PLEASANT conspired with eleven additional members of the drug trafficking organization to distribute in excess of 100 grams of heroin, in the Middle District of Louisiana, as set forth in the Indictment. As part of the conspiracy, Jason Muse purchased kilogram quantities of heroin from sources in Texas and then distributed the heroin to others in Baton Rouge and Ascension Parish. PLEASANT bought heroin from Muse to sell to others in and around Ascension parish.
To further the investigation into the organization’s drug trafficking activities, agents conducted court authorized interceptions of J. Muse’s wire and electronic communications. Through these interceptions, investigators learned that PLEASANT used telephones in furtherance of the conspiracy to distribute and possess with the intent to distribute heroin.
U.S. Attorney Fremin stated, “Thanks to the hard work of my office and our federal, state, and local law enforcement partners, we were able to remove this drug dealer from our streets with a significant jail sentence. We will continue to use our combined resources to keep dangerous drugs and drug dealers out of our communities.”
“Federal and local law enforcement have successfully collaborated in order to put this drug dealer in jail for 80 months as a result of his desire to supply the citizens in and around Ascension Parish with heroin. This successful prosecution should put others who engage in this type of criminal activity on notice: If you sell drugs, you will face federal charges and a lengthy prison sentence,” said DEA Assistant Special Agent in Charge Brad L. Byerley.
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the Ascension Parish Sheriff’s Office, the Iberville Parish Sheriff’s Office, the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sheriff’s Office, the Louisiana State Police, and the Gonzales Police Department. This matter is being prosecuted by Assistant United States Attorney Jennifer Kleinpeter, who also serves as a deputy criminal chief.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program that was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
Felon in Possession of Two Firearms Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge John W. deGravelles sentenced TERRANCE THORNTON, a 25-year-old resident of Baton Rouge, to 120 months in federal prison following his conviction of possessing two firearms by a convicted felon. The Court further sentenced THORNTON to 3 years of supervised release following his term of imprisonment. The Court also ordered that the firearms possessed by THORNTON be forfeited.
Following a high-speed car chase on July 31, 2017, THORNTON fled from Baton Rouge Police Officers on foot. As he fled, THORNTON hid a Glock pistol within a residential backyard. He later directed an associate to retrieve the hidden pistol and bring it to his residence. On August 1, 2017, law enforcement officers executed a search warrant at the defendant’s residence where they recovered the Glock pistol and a Century Arms 7.62 caliber rifle. In announcing the sentence, the Court specifically referenced the fact that THORNTON possessed both firearms in connection with his possession with intent to distribute cocaine and aggravated criminal damage to property associated with two drive-by shootings of residences in July 2017.
U.S. Attorney Fremin stated, “Thornton’s sentence to 10 years in prison, which is the maximum statutory penalty that he faced, is a testament to the efforts of Federal, State, and local law enforcement partners working in concert to get violent offenders, such as Thornton, off of our streets. It should also serve as a strong message to others engaged in any criminal conduct, to include violent crime, to return to life as a contributing member of society or face the consequence of a significant term of imprisonment.”
ATF Resident Agent-in-Charge Antonio L. Pittman stated, “The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with our Federal, State, and Local Law enforcement partners continue to serve our communities by focusing our efforts on removing armed violent drug traffickers from our streets. Especially those that have no respect for the community or law enforcement. We work diligently to protect our citizens by presenting relevant investigative work to our Middle District of Louisiana US Attorney’s Office for federal prosecution.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department, with substantial assistance from the Louisiana State Police Crime Laboratory and Fugitive Task Force. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Major Drug Traffickers Convicted at TrialRead the Press Release
United States Attorney Brandon J. Fremin announced today that a federal jury has convicted two members of a drug trafficking network operating in the Baton Rouge area. OSCAR MACHADO-GALEANA, age 31, of Baton Rouge, Louisiana, allegedly tied to the Sinaloan Cartel in Mexico, was convicted of drug trafficking, money laundering, and firearm violation. Late afternoon, October 4, 2018, after a 9 day trial, the jury unanimously returned guilty verdicts of guilty of conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, and marijuana; conspiracy to launder monetary instruments; distribution of methamphetamine; possession with intent to distribute methamphetamine and marijuana; and possession of a firearm in furtherance of a drug trafficking crime. The jury convicted his co-defendant, ROY MARTIN HERRARA-ROMERO of possession with the intent to distribute marijuana.
As the evidence at trial demonstrated, MACHADO-GALEANA obtained pounds of methamphetamine as well as a quantity of heroin from a source operating in Lafayette, Louisiana, as well as pounds of marijuana from a source in northern California. Machado-Galeana, with the assistance of Alexander P. Nava, distributed methamphetamine, heroin, and marijuana to various dealers in the Baton Rouge and Laplace, Louisiana areas. Machado-Galeana used a nominee to purchase cashier’s checks and forward those to his marijuana supplier in California. In some instances, Nava and Machado-Galeana carried firearms with them when delivering methamphetamine to dealers and picking up the payments for those controlled substances. On March 18, 2015, during the execution of a search warrant at a storage unit at 13822 Florida Blvd., Baton Rouge, LA, near the premises where HERRARA-ROMERO resided, law enforcement officers seized approximately 18 pounds of high-grade methamphetamine. Law enforcement agents executed a search warrant that day also upon Herrera-Romero’s residence at 13822 Florida Blvd., Baton Rouge, Louisiana, where they found triple beam and digital scales, a. 45 caliber semi-automatic pistol, and an amount of marijuana. That same morning, officers executed a search warrant at Machado-Galeana’s residence at 11634 W. Sherwood Avenue, Baton Rouge, Louisiana, where they seized a number of firearms, methamphetamine, and marijuana.
MACHADO-GALEANA faces a sentence of not less than fifteen years and up to life imprisonment. HERRERA-ROMERO faces a penalty of up to five years imprisonment.
United States Attorney Brandon J. Fremin stated, “These convictions are another step in fulfilling our commitment to stand up to the threat of drug dealers and drug trafficking organizations who deal dangerous substances on our streets. As our Nation continues this fight we will work in lock step with our federal, state and local law enforcement partners to ensure drug dealers, like those convicted in this case, are taken out of our communities and sent to federal prison. This indictment and conviction should send a message to those who commit crime in our district… We will be patient. We will be methodical - and we will be successful.” U.S. Attorney Fremin also said, “This was truly a collaborative effort. I am extremely proud of the outstanding work by our prosecutors and staff and the many federal, state and local partners who made the investigation, prosecution and conviction possible.”
“The successful prosecution of the members of this drug trafficking organization should be a warning to others who engage in this type of activity,” stated DEA Acting Assistant Special Agent in Charge Michael Arnett. “By removing these criminals from the streets, they can no longer distribute this toxic poison to our communities. This case highlights the impact multiple agencies can have when they join forces. We will continue to work together and pursue those who threaten our communities through the smuggling and distribution of illegal and dangerous drugs and bring them to justice. This investigation is a compelling example of that success."
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the East Baton Rouge Parish Sheriff’s Office, the Internal Revenue Service-Criminal Investigations (IRS-CI), the U.S. Department of Homeland Security, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the West Baton Rouge Parish Sheriff’s Office, and the Ascension Parish Sheriff’s Office. This matter is being prosecuted by Assistant United States Attorneys Robert W. Piedrahita, Peter Smyczek and Elizabeth White.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.