Middle District of Louisiana
Press releases recorded for this federal judicial district.
Fraudster Sentenced to 95 Months for Bank Fraud and Aggravated Identity TheftRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Chief Judge Brian A. Jackson sentenced MARSHA COLE, also known as Sandra McPherson, age 57, of Metairie, Louisiana, to ninety-five (95) months in federal prison as a result of her bank fraud scheme across several states in which she attempted to embezzle over $137,000 from elderly victims’ bank accounts. COLE was ordered to pay restitution to her victims in the amount of $103,482, to pay a $200 special assessment, and to serve a five-year term of supervised release following her term of imprisonment.
On July 13, 2016, COLE pled guilty to one count of bank fraud, in violation of Title 18, United States Code, Section 1344, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
COLE stole the personal identifying information (PII) of her victims and used that information to create fraudulent identification cards. Armed with that information, she went to her victim’s banks and withdrew funds. In order to obtain the funds, COLE forged the signatures of her victims. COLE attempted over to withdraw over $137,000 through over thirty-one (31) attempted withdrawals from her victim’s accounts at twenty-one (21) different banks in Louisiana, Mississippi and Texas. She successfully withdrew over $103,482 from her victims’ accounts.
U.S. Attorney Green stated: “This sentence reflects the significant impact of identity theft and bank fraud on victims. Together with the FBI and our other federal, state, and local partners, we will continue to aggressively pursue these types of cases through federal criminal investigations and prosecutions.”
This matter was prosecuted by the United States Attorney’s Office for the Middle District of Louisiana. The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation, and the Louisiana State Police. The matter was prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Baton Rouge Man Sentenced to 20 Years in Federal Prison for Sextortion SchemeRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that Chief U.S. District Court Judge Brian A. Jackson sentenced Matthew Chaney Walker, 26, of Baton Rouge, Louisiana, to 240 months in federal prison for his scheme to extort numerous minors over the internet for the purpose of producing and receiving child pornography. WALKER was ordered to serve a 10-year term of supervised release following his release from imprisonment. WALKER was also ordered to pay $6,247.59 in restitution, a $1000 special assessment, and a $100,000 fine. At the conclusion of the sentencing, the Court ordered WALKER to begin serving his sentence immediately and remanded WALKER to the custody of the United States Marshal.
On January 7, 2016, WALKER pleaded guilty to four counts of extortion, in violation of Title 18, United States Code, Section 875(d); three counts of production of child pornography, in violation of Title 18, United States Code, Sections 2251(a) and 2; and three counts of receipt of child pornography, in violation of Title 18, United States Code, Section 2252A(a)(2). In connection with his guilty plea, WALKER admitted that, in 2014, he met young girls online for the purpose of sexually exploiting them. In order to lure his victims, WALKER pretended to be a teenage girl and used different online screen names. During chats with his victims, Walker broached the topic of trading nude and sexually explicit images. To lower his victims’ inhibitions, WALKER initiated sexually explicit conversations and sent sexually suggestive photographs of other young girls that he represented to be of himself. Once he obtained compromising pictures of his victims, WALKER then demanded that the victims send him images even more graphic than those they had already sent to him. WALKER threatened to send compromising pictures of the victims to their families, schools, friends, and the public should they refuse to comply with his demands. As a result of his conduct, WALKER’s victims created and sent child pornography to him.
U.S. Attorney Green stated: “This case provides another tragic cautionary tale for anyone concerned about the dangers posed to our children by criminals on the internet. This defendant sexually exploited his victims by extortion and psychological manipulation, often preying on children in the supposed safety of their own homes. Today’s sentence appropriately reflects the seriousness of these crimes and the need to deter others inclined to engage in similar activity. I greatly appreciate the excellent and hard work of the prosecutor and agents handling this important matter, and commend the bravery of the victims and their families in persevering through this ordeal.”
“HSI will continue to aggressively investigate and arrest the people who seek to prey on the most vulnerable in our society,” said Raymond R. Parmer Jr., Special Agent-in-Charge, New Orleans Field Office, Homeland Security Investigations. “Thanks to our efforts with our law enforcement partners we’ve ensured Walker will never again take advantage of children.”
This case is being handled jointly by the U.S. Department of Homeland Security, Homeland Security Investigations, and the United States Secret Service, with assistance from the Cyber Crime Unit and the Criminal Division of the Louisiana Attorney General’s Office; the Peterborough Police Service, a member of the Ontario Provincial Strategy to Protect Children from Sexual Abuse and Exploitation on the Internet; the Cheatham County, Tennessee Sheriff’s Office; the Naperville, Illinois Police Department; and the Ottawa County, Michigan Sheriff’s Office, among others.
This matter is being prosecuted by Assistant U.S. Attorney Cam T. Le, who serves as the Project Safe Childhood Coordinator for the Middle District of Louisiana.
These federal charges are 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 the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “Resources” tab for information about Internet safety education.
Career Felon Sentenced to Serve More Than 17 Years in Federal PrisonRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that Ravious Darnell Thomas, age 49, of Denham Springs, Louisiana, has been sentenced to a total of 215 months in federal prison as a result of possessing a firearm while a convicted felon, possessing crack cocaine and violating the terms of his supervised release.
On July 28, 2015, the Denham Springs Police Department arrested THOMAS. After a search of Thomas’s SUV, police recovered a loaded .22 Magnum pistol and crack cocaine. THOMAS had previously been convicted of federal and state felony offenses that prohibited him from ever possessing any type of firearm. Based on the July 2015 arrest, THOMAS was indicted and convicted of possession of a firearm by a convicted felon and possession of crack cocaine.
U.S. District Court Judge John W. deGravelles today sentenced THOMAS to serve a federal prison term of 180 months on the gun and drug charges. In addition, because THOMAS was on federal supervised release at the time of his July 2015 arrest, as a result of a prior, federal narcotics conviction, the Court also found THOMAS to have violated the terms of his supervised release, and sentenced him to an additional 35 months in federal prison for the violation.
U.S. Attorney Walt Green stated: “One of my highest priorities has been the enforcement of our gun and drug laws. Today’s long jail sentence removes an armed career criminal from our streets.”
This matter was prosecuted by Assistant United States Attorney Lyman E. Thornton III and investigated by the Denham Springs Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Three Former Supervisory Correctional Officers Charged with Beating Handcuffed and Shackled Inmate at Angola State PrisonRead the Press Release
Officers Falsified Reports and Tampered with Witnesses to Cover Up Beating
Three former supervisory correctional officers at Louisiana State Penitentiary in Angola, Louisiana, were indicted today for beating a handcuffed and shackled inmate, and conspiring to cover up their misconduct by falsifying official records, committing perjury and tampering with witnesses as well as physical evidence.
According to the indictment, former Major Daniel Davis, 40, of Loranger, Louisiana; former Captain John Sanders, 31, of Marksville, Louisiana; and former Captain James Savoy, 38, of Marksville, beat an inmate, who suffered bodily injury as a result. The defendants then created a false cover story, asserting that they had used reasonable force to get the inmate under control after he had gotten out of his cell and fought with officers. To corroborate that false cover story, members of the conspiracy instructed subordinates to clean up the inmate’s blood before internal investigators could document it, falsified official prison reports and records, ordered subordinates to lie to internal affairs investigators and lied under oath in a federal civil proceeding arising out of the incident.
A fourth former supervisory correctional officer, Captain Scotty Kennedy, 48, of Beebe, Arkansas, pleaded guilty on Tuesday for his role in the incident.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the FBI’s Baton Rouge Division and is being prosecuted by Assistant U.S. Attorney Frederick A. Menner Jr. of the Middle District of Louisiana and Trial Attorney Christopher J. Perras of the Civil Rights Division’s Criminal Section.
Davis et al IndictmentThree Former Supervisory Correctional Officers Charged with Beating Handcuffed and Shackled Inmate at Angola State PrisonRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, announced that three former supervisory correctional officers at Louisiana State Penitentiary in Angola, Louisiana, were indicted today for beating a handcuffed and shackled inmate, and conspiring to cover up their misconduct by falsifying official records, committing perjury and tampering with witnesses as well as physical evidence. Earlier this week, a fourth former supervisory officer pled guilty for his role in the crimes.
Former Major DANIEL DAVIS, age 40, of Loranger, Louisiana, former Captain JOHN SANDERS, age 31, of Marksville, Louisiana, and former Captain JAMES SAVOY, age 38, of Marksville, Louisiana, were charged in a multi-count indictment by a federal Grand Jury sitting in the Middle District of Louisiana. According to the indictment, Major DANIEL DAVIS, Captain JOHN SANDERS and Captain JAMES SAVOY beat an inmate, who suffered bodily injury as a result. The defendants then created a false cover story, asserting that the officers used reasonable force to get the inmate under control after he had gotten out of his cell and fought with officers. To corroborate that false cover story, members of the conspiracy instructed subordinates to clean up the inmate’s blood before internal investigators could document it, falsified official prison reports and records, ordered subordinates to lie to internal affairs investigators and lied under oath in a federal civil proceeding arising out of the incident.
A fourth defendant, former Captain SCOTTY KENNEDY, age 48, of Beebe, Arkansas, pled guilty on Tuesday, November 1, 2016, for his role in the incident.
U.S. Attorney Green stated: “It is a sad day whenever a member of law enforcement engages in wrongdoing. In addition to the direct harm caused to a victim, such wrongdoing taints the vast majority of officers who fulfill their mission with honesty and integrity. Today’s indictment reinforces that no one is above the law.”
This case is being investigated by the Baton Rouge Office of the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Frederick A. Menner, Jr. of the Middle District of Louisiana and Trial Attorney Christopher J. Perras of the Civil Rights Division’s Criminal Section.
NOTE: An indictment is an accusation by the Grand Jury. Each defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Former Office Manager of Baton Rouge Surgery Group Sentenced for Wire FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that LORRIE LYNN ROGERSON, age 57, of Baton Rouge, Louisiana, was sentenced by U.S. District Judge John W. deGravelles for defrauding $430,490 from the Pediatric Surgery of Louisiana (“PSL”), a group of Baton Rouge physicians who specialize in surgery on children. Rogerson was ordered to serve 12 months in prison, 12 months of supervised release following prison, restitution to the victim of $430,490, a fine of $10,000, and asset forfeiture of $394,584. Rogerson was also ordered to repay $13,505 to the victim to reimburse the costs of investigating her offense.
PSL employed Rogerson to act as their office manager. Rogerson was responsible for PSL’s payroll, accounts receivable, accounts payable, and human resources. In her role, Rogerson enjoyed access to the bank accounts of PSL for the purpose of making deposits to, and paying bills from, the PSL bank account. Rogerson was entrusted with the authority and responsibility to manage PSL’s banking affairs. Rogerson had access to all accounts and was familiar with PSL’s account information.
In April 2015, a review of PSL financial records discovered that Rogerson had accessed PSL’s bank account to make unauthorized withdrawals and transfers for her personal benefit. Between May 2008 and May 2015, Rogerson caused unauthorized electronic withdrawals to be made from the PSL bank account for the purpose of paying Rogerson’s credit cards. Rogerson also issued numerous, unauthorized PSL checks for her benefit, and mischaracterized said checks in the accounting software as business expenses.
Rogerson embezzled funds on approximately 256 occasions during the period of May 2008 and May 2015. In order to execute the scheme to defraud on January 5, 2015, Rogerson used internet services to divert funds from a PSL bank account for the purpose of paying her personal credit card bills.
U.S. Attorney Green stated: “Today’s sentencing is yet another example of the insider threat that businesses face. Such offenders must be held to account and should be reported to law enforcement immediately. Our office, together with the FBI and our other federal, state, and local partners, stand ready to aggressively pursue these important matters.”
FBI Special Agent-in-Charge Jeffrey S. Sallet stated: “This case is yet another example of the FBI’s commitment to work with our partners at the United States Attorney’s Office to investigate and prosecute individuals who willingly violate the law in order to personally enrich themselves at the expense of others.”
This matter is being prosecuted by the United States Attorney’s Office for the Middle District of Louisiana. The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation, with substantial assistance provided by the victim, PSL, and their accountants, Faulk and Winkler. The matter is being prosecuted by Assistant United States Attorney René Salomon.
Baton Rouge Businessman Sentenced to Prison for Bank Fraud SchemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that United States District Chief Judge Brian A. Jackson sentenced JASON CHRISTOPHER DEVILLIER, age 45, for his convictions in connection with a scheme to defraud Whitney Bank. This summer, DEVILLIER pled guilty to bank fraud and fraudulent receipt of bank funds.
Chief Judge Jackson sentenced DEVILLIER to a term of 33 months in the Bureau of Prisons, to be followed by a term of 3 years supervised release. DEVILLIER was also sentenced to pay total restitution of $474,410.74 to Whitney Bank. Additionally, DEVILLIER was ordered to forfeit assets of $474,410.74 and pay a $25,000 fine.
These convictions arose from DEVILLIER’s ownership and operation of ABC123, L.L.C. (“ABC123”), a payment processing company for private and parochial primary and secondary schools located in Baton Rouge, Louisiana. In order for ABC123 to perform its payment processing services for the schools, parents established accounts through ABC123’s website, which enabled parents to send money electronically to the schools for tuition, cafeteria fees, and other school-related fees. ABC123 collected the funds paid by parents and transmitted them to financial institutions designated by each respective school. As a result, DEVILLIER had access to the schools’ bank account information, including routing and account numbers.
DEVILLIER accomplished his scheme to defraud Whitney Bank through his use of the Automated Clearing House (“ACH”) network. DEVILLIER previously admitted that, from November of 2012 through July of 2013, he diverted funds from ABC123’s Whitney Bank account (“the ABC123 account”) into his personal account and other accounts, in amounts ranging from $30 to $50,000, through inappropriate ACH batch transactions. For each fraudulent transaction, DEVILLIER posted numerous and substantial false and fraudulent credits to the ABC123 account, which he falsely represented as authorized withdrawals from accounts belonging to the schools. In effect, these false and fraudulent ACH credits posted by DEVILLIER made it appear as though the ABC123 account had sufficient funds for withdrawals from said account. Before Whitney Bank was able to detect and reverse the false and fraudulent ACH credits, Devillier transferred funds through ACH debits from the ABC123 account to various personal and business accounts belonging to him and others. As a result of DEVILLIER’s fraudulent conduct, Whitney Bank suffered substantial losses.
U.S. Attorney Walt Green stated: “Mr. Devillier was sentenced to a significant sentence for his criminal conduct. In lining his own pockets, Mr. Devillier violated the trust of not only Whitney Bank, but also the trust of the schools, students, and families his business was supposed to serve. I also wish to convey my appreciation to the FBI and the prosecutor for their excellent work, as well as to Whitney Bank and the schools for their cooperation and support during the investigation and prosecution of this important matter.”
SAC Jeffrey S. Sallet stated: “I would like to recognize the outstanding work done by the assigned FBI Special Agent and Assistant U.S. Attorney in unraveling this complex bank fraud scheme. The New Orleans Division of the FBI remains committed to working with our law enforcement partners to identify, investigate and prosecute those who would attempt to fraudulently utilize the banking system for personal gain.”
The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Cam T. Le.
Former Vice President of Health Care Company Sentenced to Prison for Fraud Scheme Worth over $7.5 MillionRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that United States District Judge John deGravelles sentenced MICHAEL DAVID PITTS, age 41, for his wire fraud conviction in connection with a scheme to defraud Amedisys, Incorporated, a home health and hospice care company formerly headquartered in Baton Rouge, Louisiana. PITTS pled guilty to stealing $7,641,528 from Amedisys, which annually furnishes home health services to approximately 380,000 patients in 36 states, the District of Columbia, and Puerto Rico.
Judge deGravelles sentenced PITTS to a term of 48 months in the Bureau of Prisons, to be followed by a term of 3 years supervised release. PITTS was also sentenced to pay total restitution of $7,861,679 to Amedisys, Inc., its insurer (Ace Westchester Chubb) and Amedisys Political Action Committee. Additionally, PITTS was ordered to forfeit assets of $7,641,528.
According to the Bill of Information to which PITTS pled guilty, he was the Vice President of Tax for Amedisys for the period January 2005 through July 2014. In this role, PITTS was responsible for all corporate tax matters, including the preparation of state and federal tax returns and the payment of state income taxes in the various states where Amedisys operated its business. The Bill of Information alleges that PITTS had the authority and ability to purchase tax credits for the purpose of executing his duty of reducing and paying state income taxes in the various states where Amedisys did business.
According to the Bill of Information, PITTS engaged in a scheme to defraud Amedisys from October 2006 through May 2014 through an elaborate scheme involving shell entities and fictitious film tax credits. As part of the scheme, PITTS created a counterfeit company named “Stonehenge Entertainment” for the purpose of selling false and fictitious “Tax Credit Transfer Agreements” to Amedisys. PITTS allegedly used this company name because it closely resembled the name of a legitimate company with which Amedisys did business. PITTS also allegedly created an entity known as “Evergreen Incentives” for the purpose of selling false and fictitious “Tax Credit Transfer Agreements” to Amedisys.
In order to carry out his scheme, PITTS opened and maintained a bank account at Capital One Bank, N.A. for Stonehenge Entertainment and a separate account at Regions Bank for Evergreen Incentives. PITTS created false and fictitious “Tax Credit Transfer Agreements” and used his position as Vice President of Tax to present the false and fictitious Tax Credit Transfer Agreements to his corporate supervisors for approval, falsely representing them to be valid tax credits. Once approved, PITTS then purchased the false and fictitious Tax Credit Transfer Agreements on behalf of Amedisys.
According to the Bill of Information, in order to personally benefit from the sale of false and fictitious tax credits to Amedisys, PITTS caused electronic banking transfers to divert funds from an Amedisys account at JPMorgan Chase Bank to his accounts at Capital One Bank and Regions Bank for his personal enrichment. During the period October 3, 2006 through May 16, 2014, PITTS allegedly caused Amedisys to make 21 wire transfers totaling $7,641,528 to accounts which he controlled, and for his personal enrichment.
U.S. Attorney Walt Green stated: “Today Mr. Pitts’ insatiable greed landed him in jail for the next four years. He violated the trust that Amedisys placed in him for over nine years. During this extended period, he stole over $7.5 million dollars from a company who was duped by this unscrupulous individual. I want to convey my great appreciation to the prosecutors and the FBI for their excellent work and to the victim, Amedisys, who provided valuable cooperation and support in this important matter.”
SAC Jeffrey S. Sallet stated: “The FBI New Orleans Division, in conjunction with its partners at the USAO, will aggressively pursue individuals, irrespective of their position, who attempt to use the tax credit system to defraud Louisiana businesses and residents. The FBI is committed to the protection of Louisiana's residents and businesses and will relentlessly investigate those responsible for violating federal criminal law."
This matter was prosecuted by the United States Attorney’s Office for the Middle District of Louisiana. The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation, with substantial assistance provided by the victim, Amedisys, Inc. and their representatives. The matter is being prosecuted by Assistant United States Attorney René Salomon.
United States Attorney Provides Update Regarding Federal Criminal Investigation into Death of Alton SterlingRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that his office continues to diligently and thoroughly investigate the July 5, 2016 shooting of Alton Sterling.
U.S. Attorney Green stated: “The U.S. Attorney’s Office for the Middle District of Louisiana, working closely with the U.S. Department of Justice’s Civil Rights Division and the Federal Bureau of Investigation, continues to make this investigation a top priority. To date, a team of career federal prosecutors, FBI agents and support personnel have devoted hundreds of hours to the investigation. Due to the breadth, scope and seriousness of the investigation, all three participating agencies have dedicated significant resources to the case. The investigation remains ongoing, and will conclude only when we have gathered, reviewed and evaluated all available evidence. There is no timetable for when this will be finished. My office, the Civil Rights Division, and the FBI all stand committed to taking all necessary steps to reach a just result based solely on the facts and the law.”
National Center for Disaster Fraud Combats Fraud Related to Historic Flooding in Baton Rouge AreaRead the Press Release
BATON ROUGE, LA – The National Center for Disaster Fraud (“NCDF”) announced today its efforts to combat disaster fraud related to the historic flooding event in the Baton Rouge region in August 2016.
The NCDF – which includes over 30 federal, state, and local law enforcement agencies - was established by the U.S. Department of Justice following Hurricane Katrina and is led by United States Attorney Walt Green who serves as its Executive Director.
The NCDF provides a nationwide call center for members of the public to report all types of disaster fraud, as well as a team of law enforcement agents who review those reports and make referrals to the appropriate investigative agencies. It provides de-confliction, coordination, and expertise in handling disaster fraud matters and is focused on protecting disaster victims and any funds dedicated to disaster victims. The Disaster Fraud Hotline is 1-866-720-5721.
The NCDF has received more than 68,000 complaints involving over 40 different disasters, resulting in over 50,000 referrals to law enforcement agencies. With regard to the flooding in Baton Rouge specifically, the NCDF has already received over 1200 complaints.
U.S. Attorney and NCDF Executive Director Green stated: “The NCDF and its partners are united in the common belief that those who fraudulently exploit tragedy and disaster for personal gain must be aggressively investigated and prosecuted. I am proud of the vast coalition of law enforcement agencies for every level that have come together under the NCDF umbrella to combat those fraudsters who invariably seek to take advantage of communities suffering from disasters.”
Louisiana Attorney General Jeff Landry stated: “Our office will continue to do all we can to assist those impacted by the flooding. From receiving and investigating consumer complaints to educating victims of potential scams, the Louisiana Department of Justice remains dedicated to serving the people of our State and their precious tax dollars. We stand united with our partners to ensure the storm’s victims receive the help they need and do not fall prey to those who want to exploit the system.”
FBI New Orleans Division Special Agent in Charge Jeffrey Sallet stated: “Unfortunately, not only has our state witnessed yet another catastrophic disaster, but along with these floods comes the possibility for fraud and abuse regarding disaster relief funding. While Louisiana residents are attempting to rebuild and repair their lives and homes, there are those who will try to take advantage of the situation and attempt to illegally acquire funds they are not entitled to. The FBI New Orleans Division will continue to seamlessly work with our federal, state and local partners in order to investigate fraudulent claims and contractor abuse.”
“It is disheartening that in the aftermath of a natural disaster, criminal elements attempt to steal funds intended to provide relief to victims,” said Michael Breslin, Special Agent in Charge of the U.S. Secret Service’s Criminal Investigative Division. “Disaster related fraud is not only detrimental to our nation’s financial infrastructure, it slows the process of providing much needed resources to those who have lost so much. For this reason, the Secret Service remains a committed partner of the National Center for Disaster Fraud and will relentlessly protect the process to provide financial relief to the victims.”
“The DHS Office of Inspector General has been an enthusiastic participant in the National Center for Disaster Fraud Task Force since its inception,” said Inspector General John Roth. “We continue to work with our Task Force partners to address and combat waste, fraud, and abuse arising out of the recent flooding in Louisiana, ensuring that FEMA emergency assistance is going to the disaster survivors that need it. Suspected fraud or scams should be reported toll-free to the Disaster Fraud Hotline at 1-866-720-5721.”
District Attorney Ricky Babin of the 23rd Judicial District Court stated: “The flood of 2016 has brought unprecedented human and financial loss to our communities. The 23rd Judicial District Attorney’s office is proud to join our Federal and State law enforcement partners to hold accountable any person who engages in fraud or attempts to take advantage of the victims of this natural disaster. The victims of this event have already suffered staggering devastation. This joint effort will pool our resources to focus on predatory practices that may cause further losses.”
Ascension Parish Sheriff Jeffrey Wiley stated: “The last thing that victims of flood damage need is to be victimized again. This task force will involve all levels of law enforcement and will serve an important mission, to protect those that need it the most.”
Federal Agencies
- U.S. Attorney’s Office for the Middle District of Louisiana
- U.S. Department of Justice, Criminal Division
- U.S. Department of Justice, Antitrust Division
- U.S. Department of Justice, Civil Division
- U.S. Secret Service
- U.S. Department of Homeland Security, Office of Inspector General
- Federal Bureau of Investigation
- NOAA Office of Law Enforcement
- U.S. Coast Guard, Inspective Service
- U.S. Postal Inspection Service
- U.S. Department of Defense, Criminal Investigative Service
- U.S. Environmental Protection Agency, Office of Inspector General
- U.S. Federal Housing Finance Agency, Office of Investigations
- U.S. General Services Administration, Office of Inspector General
- U.S. Department of Health and Human Services, Office of Inspector General
- U.S. Department of Housing and Urban Development, Office of Inspector General
- U.S. Department of Labor, Office of Inspector General
- U.S. Small Business Administration, Office of Inspector General
- U.S. Social Security Administration, Office of Inspector General
- U.S. Postal Service, Office of Inspector General
- U.S. Department of Labor, Wage and Hour Division
State Agencies
- Louisiana Attorney General’s Office
- District Attorney’s Office for the 19th Judicial District
- District Attorney’s Office for the 23rd Judicial District
- District Attorney’s Office for the 21st Judicial District
- Louisiana State Police
- Louisiana Department of Wildlife and Fisheries
- Baton Rouge Police Department
- Ascension Parish Sheriff’s Office
- Livingston Parish Sheriff’s Office
- East Baton Rouge Parish Sheriff’s Office
Federal Grand Jury Indicts Pharmacist and Others for Scheme to Sell Stolen HIV MedicationRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced that, in September, a federal grand jury returned a sealed Indictment against ALVIN WATTS, III, age 35, of Addis, Louisiana, TROY TAYLOR, 35, of White Castle, Louisiana, BRODERICK “CHRIS” LANDRY, 37 of White Castle, Louisiana, and FRANCIS “FRANK” ASIEDU DEBRAH, 38 of Waldorf, Maryland. The first count in the Indictment charges all four individuals with conspiracy to possess, transport, and traffic in embezzled pre-retail medical products, and to transport stolen property in interstate commerce, in violation of Title 18, United States Code, Section 371.
The Indictment alleges that these four individuals participated in a scheme to unlawfully enrich themselves by, among other things, trafficking in and transporting HIV pharmaceutical drugs that had been stolen from the Washington, D.C. Department of Health Pharmacy Warehouse where DEBRAH worked. The Indictment alleges that DEBRAH and another individual not named in the Indictment, stole HIV medication from the Washington, D.C. Department of Health Pharmacy Warehouse, and then sold the drugs to WATTS who operated a pharmacy called “Doc Your Dose” in Gross Tete, Louisiana. The Indictment alleges that WATTS sent TAYLOR and LANDRY to Washington, D.C. as couriers to purchase the stolen prescription drugs for cash. The Indictment further alleges that once TAYLOR and LANDRY returned the stolen prescription drugs to Louisiana, WATTS sold them to customers of his pharmacy.
In addition to the conspiracy count, the Indictment also charges all four men with trafficking in embezzled pre-retail medical products, in violation of Title 18, United States Code, Section 670, and charges WATTS, TAYLOR, and LANDRY with transporting stolen goods in interstate commerce, in violation of Title 18, United States Code, Section 2314. Finally, the Indictment charges WATTS with one count of receipt, possession, or sale of stolen property, in violation of Title 18 United States Code, Section 2315. The Indictment also includes a forfeiture allegation related to proceeds of the offenses.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the U.S. Food and Drug Administration’s Office of Criminal Investigations, with assistance from other FDA components, and the Louisiana State Attorney General’s Office Medicaid Fraud Control Unit. The matter is being prosecuted by Assistant United States Attorneys Peter Smyczek and Kevin Sanchez.
NOTE: An Indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
National Center for Disaster Fraud Press ConferenceRead the Press Release
BATON ROUGE, LA – The National Center for Disaster Fraud (“NCDF”) will hold a press conference on Friday, October 7, 2016, at 10:30 a.m. at Johnston Hall, Louisiana State University, regarding the efforts of the NCDF to combat fraud related to the recent record flooding that took place in the area in August 2016. The NCDF – which is a partnership among federal, state, and local law enforcement agencies - was established by the U.S. Department of Justice following Hurricane Katrina and is led by United States Attorney Walt Green who serves as its Executive Director. The NCDF provides a nationwide call center for members of the public to report all types of disaster fraud, as well as a team of law enforcement agents who review those reports and make referrals to the appropriate investigative agencies. Confirmed attendees include:
- Walt Green, U.S. Attorney and NCDF Executive Director of the NCDF
- Jeff Landry, Louisiana Attorney General
- Jeff Sallet, Special Agent-in-Charge of the Federal Bureau of Investigation
- Hillar Moore, District Attorney of the 19th Judicial District
- Representatives from numerous federal, state, and local law enforcement agencies
Federal Grand Jury Indicts Gonzales District Fire Chief on Child Pornography ChargesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment charging KRISTOPHER JOHNSON, age 36, of Gonzales, Louisiana, with distributing and possessing child pornography in an ongoing investigation.
According to the Indictment, JOHNSON distributed child pornography via text messages on four different occasions between November 6 and 7, 2015. The Indictment further alleges that JOHNSON possessed child pornography which contained images of pre-pubescent minors and minors who were under 12 years of age.
This matter is being investigated by the U.S. Department of Homeland Security, Homeland Security Investigations (DHS-HSI) and the Cyber Crime Unit of the Louisiana Attorney General’s Office, with assistance from the Ascension Parish Sheriff’s Office. The matter is being prosecuted by Assistant United States Attorney Ryan R. Crosswell.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Businessman Convicted of Fraud and Money Laundering Involving $1.2 Million School Construction ContractRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that NATHIAN D. HOSSLEY, age 50, of Baton Rouge, has been convicted of wire fraud and money laundering in connection with a contract worth over $1.2 million that his construction company entered to build a charter school in Baker, Louisiana. His sentencing date has not yet been set.
This morning, HOSSLEY plead guilty before U.S. District Judge John W. deGravelles to multiple counts of wire fraud and money laundering. These convictions arose from HOSSLEY’s ownership and operation of First Millennium Construction (“First Millennium”), a local commercial construction company headquartered in Baton Rouge, and Spice Bistro, a local restaurant that HOSSLEY co-owned.
During the guilty plea hearing, HOSSLEY admitted to a factual summary which detailed his crimes. According to that summary, HOSSLEY submitted a bid to Bouma Construction (“Bouma”) for First Millennium to work as a subcontractor on construction of the Impact Charter School in Baker, Louisiana, in 2014. During the bidding process, HOSSLEY submitted an application for the job (called a “Qualification Statement”) to Bouma in which he represented that he had never been indicted or convicted of a crime, when, in fact, he had multiple federal convictions for wire fraud, bank fraud, conspiracy to commit bank fraud, and providing a false statement in connection with a bank loan. HOSSLEY also represented that there were no civil matters pending in which he was involved, when, in fact, he was in civil litigation with a former business partner.
Bouma ultimately hired First Millennium for the Impact Charter School project and the companies entered into a contract for $1,221,163.00. Bouma’s payments to First Millennium were to be made in installments. The payment arrangement between the HOSSLEY’s company and Bouma required that HOSSLEY submit a payment application each time he wanted a new installment payment. HOSSLEY submitted multiple payment applications to Bouma which falsely understated or omitted money owed to certain sub-subcontractors or vendors he had hired to work on the job. Because of this, HOSSLEY was able to conceal from Bouma that he was using money paid to him by Bouma for the project on personal expenditures such as American Express card bills, cash withdrawals, and money transfers to a restaurant he had recently opened and co-owned, called Spice Bistro.
Then, in October of 2014, HOSSLEY contacted an executive with Bouma and told him that four sub-subcontractors which HOSSLEY had hired to assist him on the Impact Charter School project needed to immediately be paid $96,125, collectively. Because Bouma had already paid First Millennium over $849,000 on the project, the executive insisted that the payments be issued as joint checks to First Millennium and each individual sub-subcontractor. He additionally insisted that HOSSLEY obtain lien waivers and signed “Joint Check Agreements” from the four sub-subcontractors. HOSSLEY agreed to this arrangement, but rather than obtaining the signatures of the four sub-subcontractors on these documents, he and one of his employees forged the signatures on the documents themselves, including the endorsements on the joint checks. HOSSLEY then caused the checks to be deposited into First Millennium’s bank account.
After the checks were deposited into First Millennium’s bank account, HOSSLEY made a $29,474.34 payment on his American Express card from the First Millennium bank account, and then, on October 30, 2014, he made a $22,000 transfer of funds from the First Millennium bank account to the bank account of his restaurant, Spice Bistro. The total of these two transactions exceeded the amount of money in the account previous to the deposit of the four joint checks by over $10,000. These transactions formed the basis of HOSSLEY’s money laundering conviction.
The matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana and the Baton Rouge office of the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Ryan Crosswell, Rene Salomon, and Cal Leipold.
Baton Rouge Man Indicted for Spree of Armed RobberiesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment against KEITH MIGUAL WILLIAMS, age 45, of Baton Rouge, Louisiana. The indictment charges WILLIAMS with six counts of violating the Hobbs Act, Title 18, United States Code, Section 1951(a), and three counts of using, carrying, and brandishing a firearm during a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii).
The Indictment alleges that on six different occasions in an eleven-day period, from July 28, 2016 to August 7, 2016, WILLIAMS robbed Baton Rouge convenience stores, specifically, Circle K convenience stores located at 10221 Coursey Boulevard, 7475 Jefferson Highway, and 5313 Nicholson Drive; a Walgreens located at 4485 Perkins Road; and a Cracker Barrel located at 9530 Hooper Road. The Indictment further alleges that WILLIAMS used a firearm to commit three of these robberies, and mace in a fourth. In the course of these robberies, WILLIAMS allegedly stole cash and merchandise.
This matter is being investigated by the Baton Rouge Police Department, East Baton Rouge Parish Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It is being prosecuted by Assistant United States Attorneys Ryan Crosswell and Cal Leipold.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Armed Felon ConvictedRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that DEONTEZ K, MAYFIELD, age 27, of Baton Rouge, Louisiana, pled guilty today before U.S. District Judge John W. deGravelles to possessing a firearm while a convicted felon. His sentencing date has not yet been set.
MAYFIELD’s conviction arises from a chain of events that occurred in the early morning hours (1:40 am) of July 6, 2016. MAYFIELD approached a fully marked East Baton Rouge Parish Sheriff’s Office unit with his high beams on and proceeded to tailgate within a few feet of the vehicle and then backed off of the vehicle about 50 feet repeatedly. The EBRSO sergeant driving the unit changed lanes several times and MAYFIELD changed lanes also, each time staying directly behind the EBRSO unit. The sergeant maneuvered his unit and was able to get behind MAYFIELD and activated his emergency lights to initiate a traffic stop. MAYFIELD fled briefly before slowing his vehicle to a coast and exiting out of the driver’s side door, as he approached the dead end of the street. As MAYFIELD exited, he dropped a Ruger, Model 9E, 9mm pistol, equipped with laser sights and loaded with 16 rounds of ammunition.
At the time of his illegal possession of the firearm, MAYFIELD had previous convictions for simple burglary. He was convicted of Simple Burglary on September 9, 2008 in the 19th Judicial District of Louisiana, case number 05-08-0868; 12 counts of Simple Burglary on March 2, 2010 in the 18th Judicial District of Louisiana, case number 095263; and 8 counts of Simple Burglary on March 2, 2010 in the 18th Judicial District of Louisiana, case number 095826.
U.S. Attorney Green stated: “The circumstances of this case are deeply troubling. It takes little imagination to appreciate how badly things could have gone that night. Armed felons represent a clear danger to our entire community and will be aggressively pursued by our office, together with the ATF and our other federal, state, and local partners.”
ATF Resident Agent-in-Charge Antonio L. Pittman stated: “The Bureau of Alcohol, Tobacco, Firearms, and Explosives will continue to work closely with our federal, state, and local partners to provide a safe environment for everyone to live. ATF is proud to work with the United States Attorney’s Office to take a potentially violent offender from our streets and neighborhoods.”
This matter was handled by the United States Attorney’s Office for the Middle District of Louisiana, the Baton Rouge Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with the cooperation of the District Attorney’s Office for the Nineteenth Judicial District. The matter is being prosecuted by Assistant United States Attorney Jennifer M. Kleinpeter who serves as a Deputy Criminal Chief.
Federal Jury Convicts Drug TraffickerRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that the eighth and final defendant arising from Operation Road Block, an extensive investigation into a drug trafficking network operation in the Baton Rouge region, has been convicted following a federal jury trial. The other seven defendants had already been convicted.
Yesterday evening, a federal jury unanimously convicted WILBERT MATHES, age 41, of Baton Rouge, Louisiana, on seven counts of conspiracy to distribute and possess with the intent to distribute 500 grams ore more of cocaine and cocaine base; distribution of cocaine; possession with the intent to distribute 500 grams or more of cocaine; and unlawful use of a communications facility. The verdict followed a four day jury trial before U.S. District Judge Shelly Dick. MATHES was remanded into custody following his conviction and awaits sentencing.
The evidence at trial established that, between August 2010 and July 2011, MATHES had mult-kilogram shipments of cocaine transported from Houston, Texas to Baton Rouge and sold that cocaine for profit throughout the Baton Rouge area and elsewhere. This drug enterprise included MATHES, Joell Leggins, Marcus Thornton, Damond Reynard Lockett, Lamont Jackson, and Broderick Mathes.
U.S. Attorney Green stated: “This jury verdict and today’s conviction is a strong reminder of my office’s commitment to fighting the drug trade and those who traffic cocaine for profit. I appreciate the hard work of the DEA, our dedicated state and local law enforcement partners, and our prosecutors, who are working hard to keep cocaine and other dangerous drugs out of our community.”
DEA Assistant Special Agent in Charge Brad L. Byerley stated, “This guilty verdict signifies that law enforcement will not tolerate drug dealing in our communities. The DEA and our law enforcement partners are committed to identifying every individual within a drug trafficking organization who is responsible for purveying our city with illegal narcotics.”
This matter was investigated by the United States Drug Enforcement Administration, with valuable assistance from Baton Rouge Police Departmant, West Baton Rouge Parish Sheriff’s Office, East Baton Rouge Parish Sheriff’s Office and Federal Bureau of Alchol, Tobacco and Firearms. It is being prosecuted by Assistant United States Attorneys Jennifer Kleinpeter and Jessica Thornhill.
Social Security Fraudster ConvictedRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that MITCHELL STERLING HOLMES, age 43, of Port Allen, Louisiana, pled guilty before U.S. District Judge Shelly D. Dick to making false statements to a Federal agency, in violation of Title 18, United States Code, Section 1001. The sentencing date has not yet been set.
During the guilty plea hearing, HOLMES admitted that, after being appointed as an authorized payee for Social Security Administration (SSA) benefits on behalf of his minor child, he submitted a required report to the SSA that falsely stated, among other things, that he used benefit payments paid to him on behalf of his minor child when, in fact, he did not use the payments for the care and support of said child. HOLMES admitted that, as a result of his false statements, he caused a loss to the SSA of almost $90,000.00.
U.S. Attorney Green stated: “Federal benefit programs are often critical to ensuring that children in need, the elderly, and those struck by disaster are afforded a safety net – a fact that the Baton Rouge region knows all too well after the recent flooding. Defrauding these programs, and by extension the taxpayers who pay for them, is outrageous and will not be tolerated. Fraudsters not only take money from the programs, but their actions threaten to distract from the programs’ positive results. My office will continue to work with the Social Security Administration’s Office of Inspector General and our other federal, state, and local law enforcement partners, to aggressively pursue such matters.”
Special Agent-in-Charge Robert G. Feldt of the Social Security Administration, Office of Inspector General, stated: “The Social Security Administration, Office of Inspector General, will continue to tirelessly investigate and bring to justice those that commit benefit fraud and misuse their position of trust to victimize children.”
This ongoing investigation is being conducted by the Dallas Field Division of the Social Security Administration’s Office of Inspector General and the United States Attorney’s Office for the Middle District of Louisiana. It is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Baton Rouge Man Convicted of Conspiracy to Distribute Heroin and Money LaunderingRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that on September 13, 2016 AARON LAMBERT, age 33, of Baton Rouge, Louisiana, has pled guilty to conspiracy to distribute and possess with intent to distribute heroin in violation of Title 18, United States Code, Section 846, and money laundering in violation of Title 18, United States Code, Section 1957, as contained in an Indictment filed in October 2015.
During a September 13, 2016, hearing, LAMBERT entered his plea before Chief U.S. District Judge Brian A. Jackson. According to the stipulated factual basis that was presented to the Court in connection with LAMBERT’s guilty plea, between December 1, 2013, and April 16, 2015, LAMBERT conspired with nine (9) individuals in California and Louisiana to distribute thousands of pills pressed to resemble oxycodone that, in fact, contained heroin. Upon delivery of the pills in Baton Rouge from California, they were then distributed to mid-level drug dealers and ultimately sold to drug abusers in East Baton Rouge and Livingston Parishes. LAMBERT admitted that, throughout the period of the conspiracy, he knew that the pills contained heroin, and his intent was to sell and profit from the sale of significant amounts of heroin. In addition, in March 2015, LAMBERT also engaged in money laundering from the proceeds of the drug-trafficking conspiracy.
At the conclusion of the hearing, the Court accepted LAMBERT’s guilty pleas, scheduled his sentencing hearing for January 5, 2017, and remanded him to the custody of the United States Marshal.
U.S. Attorney Green stated: “The guilty plea in this case continues to highlight the benefit of working together with our federal, state, and local partners. It also exemplifies our commitment to eliminate to eliminate drug trafficking and the significant harmful effects on our community resulting from heroin distribution and use, along with our efforts to ensure that ill-gotten financial gains are exposed. This defendant’s conduct is consistent with that of others in not only exposing the community to the horrific effects of heroin, but also the significant risk associated with disguising heroin as a prescription medication – that has been confirmed as a highly dangerous activity resulting in greatly increased overdose deaths throughout the nation. I appreciate the hardworking team of federal, state, parish, and city law enforcement agencies that allowed for the successful identification, arrest, and conviction of this heroin trafficker.”
“On an average day, 78 people in the United States die from an opioid-related overdose,” said DEA Assistant Special Agent in Charge Brad L. Byerley. “The DEA and our law enforcement partners are committed to targeting those individuals and criminal organizations that are smuggling and distributing this poison and thus fueling this national epidemic.”
Jerome R. McDuffie, Special Agent in Charge, IRS – Criminal Investigation, stated: “Drug trafficking organizations engage in increasingly sophisticated financial and operational networks to disguise the proceeds of narcotics sales. IRS – Criminal Investigation is very proud of the work we do to support federal drug investigations, and we will continue to assist the U.S. Attorney’s Office and other federal agencies in this important mission. Tracing the monetary transactions provides prosecutors with key evidence to support and enhance this vital work.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Drug Enforcement Administration, the Internal Revenue Service’s Criminal Investigation Division, the Louisiana State Police, East Baton Rouge Parish Sheriff’s Office, Baton Rouge Police Department, and Iberville Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Federal Grand Jury Indicts Ethel Businessman for Investor Fraud Scheme Worth over $3.5 MillionRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of an Indictment against BRYAN LEE ADDINGTON, age 55, of Ethel, Louisiana. The Indictment charges the defendant with five counts of mail fraud, in violation of Title 18, United States Code, Section 1341, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. The Indictment also includes a forfeiture allegation that will require the defendant to forfeit the proceeds of his fraud if convicted.
The Indictment alleges that the defendant engaged in a scheme to defraud numerous victim investors from January 2010 through at least April 2016. According to the Indictment, the defendant solicited and obtained over $3.5 million from his victims. To induce the victims into investing with him, ADDINGTON falsely represented to his victims that their money would be invested in real estate and land, insurance products, and stock, and would be used to purchase insurance policies. He allegedly represented that such investments were safe and would yield good returns, and that they would, in some cases, bring guaranteed returns. Meanwhile, according to the Indictment, ADDINGTON allegedly hid from his victims that the Financial Industry Regulatory Authority had permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public.
According to the Indictment, once ADDINGTON was in control of the victim investors’ funds, he diverted a substantial portion of the funds to his own personal use, the use of others, and to make payments to other victim investors. Examples of his personal use including spending at Ruth’s Chris Steak House, Galatoire’s Bistro, Victoria’s Secret, Disney Resort, various casinos, and thousands of dollars in purchases of Louisiana State University athletic tickets.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the Louisiana Office of Financial Institutions, in coordination with the Louisiana Department of Insurance and Louisiana State Police. It is being prosecuted by Assistant United States Attorneys Ryan Rezaei and Ryan Crosswell.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Baton Rouge Resident Convicted of Fraudulent Scheme Throughout 2012 and 2013Read the Press Release
BATON ROUGE, LA - United States Attorney Walt Green of the Middle District of Louisiana announced that RAPHEW T. REED, JR., age 31, of Baton Rouge, Louisiana, has been convicted of false representation of a Social Security number, in violation of Title 42, United States Code, Section 408(a)(7)(B), and wire fraud, in violation of Title 18, United States Code, Section 1343, in connection of a fraudulent scheme he executed throughout 2012 and 2013 in the Baton Rouge area and elsewhere. REED entered his guilty pleas before Judge John W. deGravelles and is now awaiting sentencing. REED faces significant incarceration, fines, restitution, and supervised release following imprisonment, as well as the forfeiture of the proceeds of his criminal activity.
REED was a resident of Baton Rouge, Louisiana, who held himself out as a financial advisor and as someone who could assist individuals and businesses in obtaining credit and financing. However, during his guilty plea hearing, REED admitted that, in May of 2012, he knowingly made false statements to a federally-insured credit union in an attempt to obtain a loan. REED provided the credit union with a false Social Security number and documents that misrepresented his identity, income, and credit score. When that scheme failed, from late 2012 through April 2013, REED executed a scheme to defraud another company, which, on November 27, 2012, wired $125,000 to REED. REED fraudulently diverted the funds to his friends, family members, others to whom he owed money, and to another one of his own bank accounts. When the victim repeatedly asked REED to return the funds, as he had promised he would do, REED falsely represented to the victim that he was in the process of returning the company’s funds. REED knew that he did not have the funds but continued to make false statements to the victim through April of 2013.
U.S. Attorney Green stated: “Con artists undermine the financial security of our community and often leave many victims in their wake. We will continue to vigilantly pursue such criminals with the resources necessary to bring them to justice.”
This ongoing matter is being investigated by the Baton Rouge office of the Federal Bureau of Investigation, with valuable assistance from the Social Security Administration’s Office of Inspector General. The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a deputy chief within the office’s Criminal Division.
School Owner and Ceo Indicted in Connection with Federal Financial Aid SchemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment against ALDEN HALL, age 57, of Baton Rouge, Louisiana. The Indictment charges HALL with four counts of theft of government funds, in violation of Title 18, United States Code, Section 641, one count of fraudulently obtaining financial assistance funds, in violation of Title 18, United States Code, Section 1097(a), one count of engaging in monetary transactions in property derived from specified unlawful activity, in violation of Title 18, United States Code, Section 1957, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The Indictment also includes a forfeiture allegation related to proceeds of the offenses.
The Indictment alleges that HALL, the owner and Chief Executive Officer of Alden’s School of Cosmetology and Alden’s School of Barbering in Baker, Louisiana, engaged in a scheme to steal Title IV funds, specifically, Pell Grant funds, from the Department of Education (“DOED”). As part of the alleged scheme, the Indictment alleges that HALL caused misrepresentations to be submitted to the DOED, including that certain students were enrolled in Pell Grant-approved programs of instruction when HALL knew that they were actually in programs of instruction which did not qualify for Pell Grants. The Indictment further alleges that HALL concealed from enrolling students that certain programs offered by her schools did not qualify for Pell Grants, and that HALL caused false and forged documents to be submitted as part of certain students’ financial aid packages for the purpose of qualifying students for Pell Grants. During a Program Review by the DOED, the Indictment further alleges that HALL concealed her school’s barbering program, which did not qualify for Pell Grants, by moving barbering students from a barbering classroom into a cosmetology classroom, giving barbering students badges that identified them as cosmetology students, and instructing her barbering instructors to not appear at the school during the DOED Program Review.
The Indictment also alleges that HALL caused misrepresentations to the DOED about the number of hours that certain students had attended class and further that certain individuals were students at the school when, in fact, such individuals had never attended class. The financial aid scheme, as alleged in the Indictment, resulted in HALL and her businesses fraudulently receiving over $100,000 in federal funds.
The Indictment further alleges that in the course of the scheme, HALL transferred criminally derived property of a value greater than $10,000 by causing a transfer of $50,000 from a bank account to a check issued to herself on or about December 21, 2011.
Finally, the Indictment alleges that during and in relation to the scheme, HALL used the social security number of another person to steal and embezzle Pell Grant funds in or about June of 2012.
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 – Office of the Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Ryan Crosswell.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Organizer of Major Trafficking Network Sentenced to over 26 Years in Operation Third WorldRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the sentencing of Charles C. London, age 41, of Baton Rouge, Louisiana. Today, District Judge Shelly D. Dick sentenced Charles C. London to serve 322 months in prison. London was a leading member of a drug trafficking network operating in Baton Rouge and the surrounding areas. The defendant was prosecuted as part of Operation Third World, which resulted in a federal grand jury indictment against 39 individuals. To date, 33 defendants have either pled guilty or are in the process of pleading guilty and the remaining 4 defendants are set for trial in January 2017.
On January 6, 2016, London pled guilty to conspiracy to distribute and to possess with the intent to distribute five kilograms or more of cocaine, in violation of 21 U.S.C. § 846 and 18 U.S.C. § 2; distribution of MDMC and BZP, in violation of 21 U.S.C. § 841(a)(1); distribution of 28 grams or more of crack cocaine, in violation of 21 U.S.C. § 841(a)(1); conspiracy to distribute and to possess with the intent to distribute MDMA, in violation of 21 U.S.C. § 846 and 18 U.S.C. § 2; possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c); and unlawful use of a communications facility, in violation of 21 U.S.C. § 843(b).
According to the factual basis filed in LONDON’s plea agreement, beginning in early 2013, and continuing through September of 2013, LONDON conspired to distribute at least 21 kilograms of cocaine, 630 grams of crack cocaine and over 9,000 MDMA tablets. On September 5, 2013, the defendant possessed at his residence in Baton Rouge, LA, in excess of 8,500 BZP pills, over $123,000, a digital scale, a money counter and a loaded Glock .40 caliber pistol.
U.S. Attorney Green stated: “Today’s sentence sends a message to drug traffickers that the United States Attorney’s Office is committed to prosecuting drug traffickers to the full extent of the law with deserved consequences for polluting our streets and ruining the lives of our citizens with dangerous drugs.
This operation is being handled by the U.S. Attorney’s Office, the U.S. 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 Sherriff’s Office, the Ascension Parish Sheriff’s Office, the Louisiana State Police, the Iberville Parish Sherriff’s Office, the Livingston Parish Sherriff’s Office, the Gonzales Police Department, and the Baker Police Department. This matter is being prosecuted by Assistant United States Attorneys Jennifer Kleinpeter and Adam Ptashkin.
Former Baton Rouge Tax Preparer IndictedRead the Press Release
United States Attorney Walt Green announced today that a federal grand jury returned an indictment on September 7, 2016, charging BELVIN F. TYSON, 60, of Liberty, Mississippi with interfering with the administration of the IRS laws, access device fraud and aggravated identity theft.
The Indictment alleges that TYSON impeded the due administration of the IRS laws, by fraudulently manipulating her clients’ Schedule A deductions, Schedule C income and by adding fraudulent dependents to increase their tax refunds. The Indictment alleges that in addition to exaggerating her clients’ deductions and income, TYSON also sold the personal identifiable information of others to her clients. She used this information to claim fraudulent dependents on her client’s tax returns, which increased their tax refund. Her actions in tax year 2011 and 2012 resulted in a loss of approximately $100,000 to the United States Treasury.
The investigation of TYSON was conducted by the Internal Revenue Service Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Company Owner Pleads Guilty to Bank FraudRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that CARL D. WRIGHT, age 46, of Greenwell Springs, Louisiana, pled guilty yesterday before Senior U.S. District Judge James J. Brady to one count of bank fraud, in violation of Title 18, United States Code, Section 1344, and to four counts of making false statements to financial institutions, in violation of Title 18, United States Code, Section 1014. As a result of his convictions, WRIGHT faces a potential prison term as well as restitution to the victim-banks.
WRIGHT operated a company called Nevada Systems, Inc., which was in the business of renovating distressed residential properties. From 2004 until 2010, WRIGHT executed a scheme to defraud several banks in the Baton Rouge area. WRIGHT obtained loan proceeds from multiple banks by submitting loan applications that contained numerous materially false statements and information. WRIGHT’s loan applications were accompanied by fictitious tax returns that WRIGHT had his tax preparer create on his behalf and presented to the banks as proof of income. The fictitious returns contained inflated income figures and were never filed with the Internal Revenue Service. WRIGHT and his companies fraudulently obtained approximately $2.5 million from several banks.
U.S. Attorney Green stated, “In working with the Federal Bureau of Investigation in this and other cases, our office will continue to aggressively pursue individuals who defraud our banks and financial institutions. Holding individuals accountable for their actions is crucial to halting fraud and to serving as a deterrent to anyone inclined to engage in similar wrongdoing.”
This investigation was handled by the Federal Bureau of Investigation. This matter is being prosecuted by Assistant United States Attorneys J. Brady Casey and Peter Smyczek.
Baton Rouge Resident Sentenced for Stealing Federal Dollars in Fraudulent Tax Refund SchemeRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that on Wednesday, August 31, 2016, LAGUARDIA COSTON, age 29, of Baton Rouge, Louisiana, was sentenced by Senior U.S. District Judge James J. Brady to theft of government funds, in violation of Title 18, United States Code, Section 641. During a December 2015 guilty plea hearing, COSTON admitted to preparing and filing numerous fraudulent tax returns using stolen personal identifiers, such as names and social security numbers, of 73 separate victims, and, in doing so, stole $102,000 in tax refunds from the U.S. Treasury.
After hearing evidence during the sentencing hearing, Judge Brady sentenced COSTON to a term of imprisonment of 33 months, a term of supervision after release from prison of 3 years, forfeiture of $102,000, and restitution to the U.S. Treasury of $102,000. After serving the adjudged term of imprisonment, COSTON will be supervised by the U.S. Probation Office to ensure that she abides by certain conditions imposed by Judge Brady designed to ensure that she embarks on a crime-free path.
U.S. Attorney Green stated: “This case exemplifies the importance of our office working in concert with the Internal Revenue Service Criminal Investigation Division (IRS-CI) to ensure that individuals who use the stolen identities of others and defraud the United States face the justice they deserve. We look forward to continuing our work with IRS-CI and other investigative agencies in the fight to deter both ongoing criminal conduct along with similar criminal conduct considered by others.”
Special Agent-in-Charge of Internal Revenue Service Criminal Investigation, Jerome R. McDuffie, stated: “This sentence is a stern reminder that participation in refund fraud schemes does not pay and those who do so will be held accountable. Ms. Coston used 73 stolen identities to file false tax returns and obtain refunds for personal gain. Identity theft is an on-going problem and IRS-CI will continue to vigorously investigate those engaged in these illegal activities, and work with the United States Attorney's Office to aggressively protect innocent taxpayers and preserve the integrity of our tax system.”
This matter has been investigated by the Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Herion Trafficker Sentenced to PrisonRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the results of another federal prosecution relating to a multi-state heroin trafficking ring. On August 24, 2016, Chief U.S. District Judge Brian A. Jackson sentenced DARYL WALKER, age 42, of Baton Rouge, Louisiana, to serve 5 years in prison, followed by 4 years of supervised release. WALKER was also ordered to forfeit $72,000 in drug-trafficking-related proceeds. On March 29, 2016, WALKER pled guilty to possession with intent to distribute heroin, in violation of Title 18, United States Code, Section 841, and possession of an illegal firearm, in violation of Title 26, United States Code, Section 5861.
U.S. Attorney Green stated: “My office, together with our federal, state, and local partners, will continue our work to eliminate to eliminate drug trafficking and possession of illegal firearms. In particular, our collaborative law effort has stayed the course in pursuing heroin traffickers who are directly responsible for the significant harmful effects on our community resulting from such distribution. I note that the heroin-trafficking ring, of which Walker was a willing participant, not only exposed the community to the horrific effects of heroin, but also the significant risk associated with disguising heroin as a prescription medication – a practice that has already been identified as resulting in greatly increased overdose deaths throughout the nation. I sincerely appreciate the hardworking team of federal, state, and local law enforcement agencies that allowed for the successful identification, arrest, and conviction of this heroin dealer.”
“The abuse of heroin and prescription drugs is a serious problem in our communities. All too often, this abuse leads to addiction, shattered lives, and even death. For the health and safety of our citizens, DEA and our law enforcement partners will continue to target those who illegally obtain and distribute these potentially dangerous drugs. This sentencing confirms that we will stand firmly to ensure that criminals who peddle in these poisons and wreak havoc in our communities will never escape from facing the consequences of their criminal activities,” said DEA Assistant Special Agent in Charge Brad L. Byerley.
This matter was investigated by the U.S. Drug Enforcement Administration’s Tactical Diversion Squad in the Baton Rouge Office and the Internal Revenue Service - Criminal Investigation Division, with assistance from the Louisiana State Police, East Baton Rouge Parish Sheriff’s Office, Iberville Parish Sheriff’s Office, and Baton Rouge Police Department. The case was prosecuted by Assistant United States Attorney Paul L. Pugliese.
Baton Rouge Man Sentenced to Lengthy Prison Term for Mailing Threatening Letters to Federal and State CourthousesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that BRIAN CAVALIER, age 34, of Baton Rouge, Louisiana, has been sentenced to serve ninety-two (92) months in federal prison, as a result of his convictions for making threats by mail, in violation of Title 18, United States Code, Section 844(e). Chief U.S. District Judge Brian A. Jackson ordered the sentence to run consecutive to criminal sentences that CAVALIER may also face as a result of unrelated criminal conduct charged in the 19th Judicial District Court in East Baton Rouge Parish and the 23rd Judicial District Court in Ascension Parish. Following his release from prison, CAVALIER will be also required to serve a 3-year term of supervised release.
CAVALIER previously admitted that on November 1, 2013, he mailed a threatening letter to the United States District Court for the Middle District of Louisiana in which he falsely and maliciously conveyed that a bomb had been planted in the federal courthouse and that the bomb was set to detonate within twenty-four (24) hours. CAVALIER had also placed a small amount of a white powdery substance inside the letter’s envelope, and the letter falsely stated that anyone who inhaled the powder would die a “painful death” within 24 hours. CAVALIER’S letter also falsely stated that there were “shooters” outside the federal courthouse and that anyone who attempted to exit the courthouse would be “shot to death.”
CAVALIER also admitted that approximately one month later, on or about December 2, 2013, he mailed a second threatening letter, this time to the 19th Judicial District Court in Baton Rouge, which also falsely and maliciously conveyed that a bomb had been planted in the state courthouse and that the bomb would soon detonate. The defendant also falsely represented that there were armed men with “high power guns” watching the building and that they would kill people inside the building, too. This second letter also contained a small amount of suspicious white powder, wrapped in plastic. At the time CAVALIER sent both letters, he was in state custody in the Avoyelles Detention Center, in Cottonport, Louisiana, on unrelated charges.
U.S. Attorney Green stated: “Today’s sentence should send a strong message that terroristic threats to the judiciary and others working in the criminal justice system will be dealt with severely. The defendant’s conduct had a direct impact on hard-working men and women in government who, in the fall of 2013, were just trying to do their jobs and serve the public. The defendant’s conduct also needlessly diverted first responders and other precious resources away from the legitimate needs of our community. I appreciate the hard work of the FBI, BRPD, EBRSO, and the Baton Rouge Fire Department, in bringing this defendant to justice, and I appreciate the work of all of the first responders who are called out to potentially-dangerous situations each and every day.”
This matter was investigated by the Federal Bureau of Investigation, working in close coordination with the Louisiana Department of Corrections, the Baton Rouge Fire Department, the East Baton Rouge Parish Sheriff’s Office, the Baton Rouge Police Department, the East Baton Rouge District Attorney’s Office, and other law enforcement agencies. The matter was prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division.
Florida Resident Convicted in Wire Fraud Scheme Involving $1.3 MillionRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced THOMAS J. TANNER, JR., age 50, of Destin, Florida, pled guilty before U.S. District Judge John W. deGravelles to identity theft, in violation of Title 18, United States Code, Section 1028. During the guilty plea hearing, TANNER, a former Project Manager of ISC Constructors, LLC, admitted to using the signature, name, and position of another individual relating to a scheme to defraud his former employer, ISC, along with Chevron U.S.A., Inc., of approximately $1,300,000, which was used to pay himself and others inflated rates for approximately 1 year.
U.S. Attorney Green stated: “Unfortunately, corporate fraud schemes continue to be employed by criminals both in the United States and worldwide. Moreover, the high-speed nature of communications today has allowed corporate executives to, at times, transmit fraudulent documents via e-mail, with the belief that the documents will be quickly reviewed and approved, and the underlying fraudulent scheme never discovered. This case is another example of my office working in conjunction with the FBI to aggressively identify and prosecute those engaged in identity theft and corporate fraud, as such criminal conduct results in the loss of significant corporate funds and corporate integrity.”
FBI Special Agent-in-Charge Jeffrey S. Sallet stated: “The FBI New Orleans Division will continue to investigate allegations of identity theft and similar white collar crimes that defraud Louisiana employers and residents.”
This ongoing investigation is being conducted by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Paul L. Pugliese.
Federal Jury Convicts Another Member of Gulf Coast Drug Trafficking RingRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the fourth conviction in a series of federal prosecutions aimed at a drug trafficking ring which operated in the Gulf Coast states. A federal jury has convicted KAREEM MCKINNON, age 25, of Crystal River, Florida, of conspiracy to distribute 500 grams or more of cocaine, in violation of Title 21, United States Code, Sections 846 and 2. The verdict, yesterday afternoon, followed a multi-day jury trial before Chief U.S. District Judge Brian A. Jackson. MCKINNON was remanded into custody following his conviction and is scheduled to be sentenced at 9:30 a.m. on November 17, 2016.
The evidence at trial established that, between January and March of 2015, MCKINNON and his co-conspirators made multiple trips to the Houston, Texas area, where they would obtain distribution-level quantities of cocaine. The co-conspirators would drive the cocaine back to Florida, where the cocaine would be distributed. MCKINNON and his co-conspirators would travel in a two-car caravan, with the cocaine being transported in one car and MCKINNON and other co-conspirators following behind in a separate car, in an effort to evade law enforcement and minimize the risk that all of the co-conspirators could be apprehended. On or about February 8, 2015, after one such trip to Houston, MCKINNON and his co-conspirators were arrested while driving through Baton Rouge, Louisiana, and found to be transporting more than 4 kilograms of cocaine.
MCKINNON’S conviction follows the convictions of three co-conspirators:
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Arthur William Armstrong, age 34, of Crystal River, Florida, pled guilty on October 21, 2015 to a bill of information charging him with conspiracy to possess with the intent to distribute 500 grams or more of cocaine;
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Lamechia Richburg, age 22, of Crystal River, Florida, pled guilty on December 2, 2015, to a bill of information charging her with conspiracy to possess with the intent to distribute cocaine; and
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Shelby Collazo, age 21, of Beverly Hills, Florida, pled guilty on December 4, 2015, to a bill of information charging her with conspiracy to possess with the intent to distribute cocaine.
A fifth individual, Kendall Lewis, age 26, of Crystal River, Florida, was named in an indictment returned by a federal grand jury on July 7, 2016, charging him with conspiracy to distribute 500 grams or more of cocaine. That case remains pending.
U.S. Attorney Green stated: “This jury verdict and today’s conviction is a strong reminder of my office’s commitment to fighting the drug trade and those who traffic cocaine for profit. I appreciate the hard work of the DEA, our dedicated state and local law enforcement partners, and our prosecutors, who are working hard to keep cocaine and other dangerous drugs out of our community.”
This matter was investigated by the United States Drug Enforcement Agency, with valuable assistance from the Baton Rouge Police Department and the Louisiana State Police. It is being prosecuted by Assistant United States Attorneys Adam Ptashkin and Robert Piedrahita.
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Livingston Parish Counterfeiters Sentenced to Federal PrisonRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced that yesterday United States District Judge John W. deGravelles sentenced two Livingston Parish residents to federal prison after being convicted of conspiring to counterfeit currency.
On April 26, 2016, PHILIP SLAY, age 28, of Denham Springs, Louisiana, was sentenced to a 40-month term of imprisonment, followed by a 3-year term of supervised release. On July 13, 2016, BRANDI ROBINSON, age 29, of Livingston, Louisiana, was sentenced to a 15-month term of imprisonment, followed by a 3-year term of supervised release.
U.S. Attorney Green stated: “Counterfeiting is not a victimless crime. My office will continue to work with the U.S. Secret Service and our other federal, state, and local partners to help ensure that we protect citizens and businesses from criminals who circulate counterfeit money in our community.”
Secret Service Agent-In-Charge Luis Velez stated: “The U.S. Secret Service remains committed to suppressing the counterfeiting of U.S. currency and will continue to pursue anyone who violates the faith and trust citizens have in our financial infrastructure”
This matter has been investigated by the United States Secret Service with substantial assistance from the Denham Springs Police Department. It is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Statement by U.S. Attorney Regarding Today's Tragic IncidentRead the Press Release
BATON ROUGE, LA – In the wake of today’s tragic events, United States Attorney Walt Green stated: “Our hearts and prayers are with the families of the fallen officers and those officers who were wounded in this horrific incident. Today’s attack is truly despicable. We will devote whatever federal law enforcement resources are necessary to ensure that justice is served.”
Metairie Woman Convicted of Multi-State Bank Fraud Scheme and Aggravated Identity TheftRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that MARSHA COLE, age 56, of Metairie, Louisiana, pled guilty yesterday before Chief U.S. District Judge Brian A. Jackson to aggravated identity theft and engaging in a scheme to defraud numerous banks in Louisiana, Mississippi, and Texas. As part of the scheme, COLE embezzled approximately $102,257 from her victim accounts at several banks. She is set to be sentenced on November 17, 2016.
At yesterday’s hearing, COLE admitted that she obtained the personal identifiable information (PII) of her victims and used that information to create fraudulent identification cards. Armed with that information, COLE went to banks associated with her victims, forged their signatures, and withdrew funds. Throughout her scheme, COLE admitted that she attempted to withdraw over $136,000 during over thirty-one (31) attempted withdrawals from victim accounts at twenty-one (21) different banks in Louisiana, Mississippi, and Texas. Ultimately, COLE was able to withdraw over $102,257 from victim accounts.
United States Attorney Green stated: “Fraud against our banks threatens not just the financial institutions, but also their customers and ultimately the taxpayers. This case is another example of my office working together with our law enforcement partners to aggressively investigate and prosecute identity theft offenses, one of the fastest growing crimes in America.”
FBI Special Agent-In-Charge Jeffrey S. Sallet stated: “This case is yet another example of the FBI’s commitment to work with our partners at the United States Attorney’s Office to investigate and prosecute individuals who willingly violate the law in order to personally enrich themselves at the expense of others.”
This matter is being prosecuted by the United States Attorney’s Office for the Middle District of Louisiana. The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation and the Louisiana State Police. The matter is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Baton Rouge Man Convicted of Possession with the Intent to Distribute HeroinRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the results of another federal prosecution related to drug trafficking of heroin pills pressed to resemble Oxycodone. On Tuesday, July 12, 2016, U.S. District Judge John W. deGravelles sentenced BRANDON KORNBACHER, a.k.a. “Meeko,” age 31, of Baton Rouge, Louisiana, to serve 46 months in prison followed by 3 years of supervised release. Judge deGravelles also ordered that the 46-month prison sentence shall run consecutively to any sentence imposed by a Louisiana State Court for a separate drug-trafficking offense pending against KORNBACHER.
On December 9, 2015, KORNBACHER pled guilty to possession with intent to distribute heroin in violation of Title 18, United States Code, Section 841, and as contained in an Indictment filed in July 9, 2015. As part of his plea, KORNBACHER admitted that on February 28, 2015, officers with the Baton Rouge Police Department discovered 554 pills during a traffic stop of a pickup truck operated by KORNBACHER that had an inoperable headlamp. KORNBACHER initially slowed down to indicate he was stopping, but then accelerated in an attempt to flee. KORNBACHER ran several red lights near Cortana Mall, pulled over in a residential neighborhood to allow a passenger to flee on foot, and subsequently stopped his truck. After KORNBACHER was placed in custody, the BRPD officers located two plastic bags containing 554 blue pills in the lower storage compartment of the truck. KORNBACHER admitted that he knew that the pills contained heroin and that he intended to distribute the pills at a later time.
U.S. Attorney Green stated: “This sentencing resulted from a line of cases prosecuted by my office relating to heroin pills pressed to resemble a prescription pain medication. Leaders in our community recognize the dangers placed on our citizens by drug traffickers who not only distribute heroin, but do so in a form that leads users to believe that they are pain killers prescribed by medical professionals. We, as a community, cannot allow such criminals to continue to profit from the extreme suffering of those addicted to heroin and other opiates. My office will continue to work with our law enforcement partners to ensure that those who deal controlled substances will inevitably face the justice that they deserve. The sentence imposed in this case forwards that effort. I truly appreciate the efforts of the BRPD in stopping this drug trafficker from continuing to distribute heroin and, with the diligent efforts of the DEA, helping to successfully prosecute this case.”
Brad L. Byerley, Assistant Special Agent in Charge of the Drug Enforcement Administration’s Baton Rouge Resident Office stated: “Heroin has been poisoning our communities in the greater Baton Rouge area for many years. In this investigation, DEA and local law enforcement pursued this drug dealer who preyed on the weak and addicted through the distribution of heroin pills disguised as prescription pain medication. The resulting conviction and sentencing furthers our efforts to prevent heroin trafficking from taking hold in our community.”
The investigation of this case was conducted by the U.S. Drug Enforcement Administration’s Baton Rouge Tactical Diversion Squad and the Baton Rouge Police Department, Department, with assistance from the Iberville Sheriff’s Office, East Baton Rouge Sheriff’s Office , and Louisiana State Police.” It was prosecuted by Assistant United States Attorney Paul L. Pugliese.
Middle District of Louisiana Human-Trafficking Task Force Investigation Results in Indictment for Child Sex TraffickingRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced that an indictment was returned yesterday by a federal grand jury charging Udraka Roberts-Bey, age 25, of New Orleans, Louisiana, and Jennifer Gabrielle Anselmo, age 22, of Slaughter, Louisiana, of conspiracy to engage in sex trafficking of a minor.
According to the indictment, Roberts-Bey and Anselmo conspired to, among other things, recruit and induce a 15-year-old female to engage in prostitution and benefit financially from their pay-for-sex enterprise at locations in Baton Rouge and New Orleans. The indictment alleges that both Roberts-Bey and Anselmo promoted their prostitution business by using the website “backpage.com” to post classified advertisements in the Baton Rouge Female Escorts section for commercial sex acts.
A joint law-enforcement operation involving Middle District of Louisiana Human-Trafficking Task Force representatives, and spearheaded by the East Baton Rouge Sheriff’s Office, identified the prostitution business run by Robert-Bey and Anselmo, and resulted in their arrest along with the rescue of the 15-year-old victim from a Baton Rouge hotel that was one of several locations where she was trafficked.
U.S. Attorney Green stated: “Once again a joint-law enforcement task force comprised of federal, state, and local law enforcement successfully identified a horrific crime that allowed for the rescue of a minor victimized by adult sex traffickers. Roberts-Bey and Anselmo operated the prostitution business out of greed and with no regard to the fact that they were stealing a child’s innocence. My office will continue to work in concert with our fellow law enforcement agencies to combat human-trafficking in any form, to include commercial-sex and labor trafficking. I appreciate the high-level of dedication and work by agents and prosecutors in this ongoing fight against sex traffickers and ensuring that perpetrators receive the justice they deserve.”
FBI Special Agent-in-Charge Jeff Sallet stated: “Human trafficking is a serious crime that requires law enforcement collaboration and expertise to successfully combat. This indictment is the result of a joint investigation involving federal, state and local law enforcement working together to confront human trafficking and the threat it poses to our children as well as other vulnerable individuals.”
East Baton Rouge Parish Sid Gautreaux stated: “The Sheriff's Office is committed to dedicating our resources to this joint effort to combat human trafficking in our community. This case is a result of the unprecedented level of collaboration and cooperation among agencies. Human trafficking is a heinous crime that we simply will not tolerate in this parish or elsewhere.”
This case is being investigated by the Middle District of Louisiana Human-Trafficking Task Force, to include the FBI New Orleans Division, East Baton Rouge Sheriff’s Office, and Louisiana State Police, with assistance from the East Baton Rouge District Attorney’s Office and U.S. Department of Homeland Security – Homeland Security Investigations. The matter is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
NOTE: An indictment is an accusation by a grand jury and a defendant is presumed innocent unless and until adjudicated guilty at trial or through a guilty plea.
United States Attorney Announces Federal Criminal Investigation into Death of Alton SterlingRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today “the FBI’s New Orleans Division, the Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Louisiana have opened a civil rights investigation into the death of Alton Sterling. The Justice Department will collect all available facts and evidence and conduct a fair, thorough, and impartial investigation. As this is an ongoing investigation we are not able to comment further at this time.”
Louisiana Woman Sentenced to 192 Months in Prison for Conspiring to Commit Sex Trafficking of a MinorRead the Press Release
A Louisiana woman was sentenced today to 16 years in prison for conspiring to commit sex trafficking of a minor, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana and Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Division.
Kellie M. Dominique, 37, of Baton Rouge, Louisiana, was sentenced by U.S. District Judge Shelly D. Dick of the Middle District of Louisiana, who also ordered her to serve a five-year term of supervised release.
In connection with her plea, Dominique admitted that from June 2013 until September 2013, she conspired with others to promote the prostitution of a minor female out of Dominique’s home and other venues. In order to manage and carry on the prostitution business, Dominique admitted that she and the minor female regularly used telephones to schedule prostitution sessions and to discuss the proceeds earned from the prostitution sessions. Dominique also admitted that she facilitated the minor female’s posts on Backpage.com classified advertisements for commercial sex acts in Louisiana and elsewhere. Dominique further admitted that she provided the minor female with illegal drugs and used such drugs with the minor female. Finally, when authorities began to investigate her illegal conduct, Dominique made false statements to government officials and corruptly influenced potential witnesses.
Four others have been convicted in related cases in the Middle District of Louisiana, including Jeremie Tate, 34, of Zachery, Louisiana, who was sentenced in September 2015 to serve 115 months in prison for operating an interstate prostitution enterprise.
The FBI’s Baton Rouge Child Exploitation Task Force, comprised of East Baton Rouge Sheriff's Office, Louisiana Attorney General’s Office and Louisiana State Police, investigated the case with assistance from the Baton Rouge Police Department’s Narcotics Division, the U.S. Marshals Fugitive Task Force and other law enforcement agencies.
Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jamie A. Flowers Jr. of the Middle District of Louisiana prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Human Trafficker Sentenced to 16 Years in Federal PrisonRead the Press Release
BATON ROUGE, LA – U.S. Attorney Walt Green, Assistant Attorney General Leslie R. Caldwell of the U.S. Department of Justice’s Criminal Division, and Special Agent in Charge Jeffrey S. Sallet of the Federal Bureau of Investigation’s New Orleans Division announced today that KELLIE M. DOMINIQUE, age 37, of Baton Rouge, Louisiana, was sentenced by U.S. District Judge Shelly D. Dick to 16 years in prison for conspiring to commit sex trafficking of a minor, followed by 5 years of supervised release. DOMINIQUE was also ordered to pay the victim $15,000 in restitution and to forfeit $15,000 in illegal proceeds from the offense.
At her guilty plea hearing, Dominique admitted that from June 2013 until September 2013, she conspired with others to promote the prostitution of a minor female out of Dominique’s home and other venues. In order to manage and carry on the prostitution business, Dominique admitted that she and the minor female regularly used telephones to schedule prostitution sessions and to discuss the proceeds earned from the prostitution sessions. Dominique also admitted that she facilitated the minor female’s posts on Backpage.com classified advertisements for commercial sex acts in Louisiana and elsewhere. Dominique further admitted that she provided the minor female with illegal drugs and used such drugs with the minor female. Finally, when authorities began to investigate her illegal conduct, Dominique made false statements to government officials and corruptly influenced potential witnesses.
Four others have been convicted in related cases in the Middle District of Louisiana, including Jeremie Tate, 34, of Zachery, Louisiana, who was sentenced in September 2015 to serve 115 months in prison for operating an interstate prostitution enterprise.
U.S. Attorney Green stated: “Today’s sentence should send a loud and clear message about the severe and real consequences that face those convicted in federal court of sexually trafficking minors. Our office is strongly committed to aggressively pursuing these offenders with our federal, state, and local partners, both through federal prosecutions and our leadership on the Middle District of Louisiana Human Trafficking Task Force. I commend the outstanding efforts of the prosecutors and agents who worked on this very important matter.”
FBI SAC Sallet stated: “Human Trafficking is an ever present threat that warrants our daily attention and law enforcement expertise. This sentence shows the severity of the crime and magnitude of Human Trafficking throughout the nation. Through federal, state and local law enforcement collaboration we are better able to confront and investigate this crime and its threat to our children.”
The FBI’s Baton Rouge Crimes Against Children Task Force, the Louisiana Attorney General’s Office, the Louisiana State Police and the East Baton Rouge, Louisiana, Sheriff’s Office investigated the case with assistance from the Baton Rouge Police Department’s Narcotics Division, the U.S. Marshals Fugitive Task Force and other law enforcement agencies.
Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jamie A. Flowers Jr. of the Middle District of Louisiana prosecuted the case.
Drug Dealer Sentenced to 10 Years in Prison for Trafficking Oxycodone After Being Convicted at TrialRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced the results of another federal prosecution related to the trafficking of opiates. U.S. District Judge John W. deGravelles sentenced KENDRICK D. ALEXANDER, age 43, of Baton Rouge and New Iberia, Louisiana, to serve 10 years in prison, followed by 3 years of supervised release. ALEXANDER was also ordered to forfeit $60,000 in drug-trafficking related proceeds and pay a $25,000 fine.
On March 12, 2015, following a four-day jury trial, ALEXANDER was convicted of possession with the intent to distribute oxycodone, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 846 and 841(a)(1). Evidence at trial showed ALEXANDER to be a significant drug trafficker who served as a supplier for lower-level dealers. To illustrate, the evidence showed that, from August 5, 2014 to August 14, 2014, in a series of recorded conversations, ALEXANDER negotiated a price of $60,000 for 5,000 30-mg oxycodone tablets and, in addition, had agreed to weekly drug deals at the same terms. At trial, the evidence showed that ALEXANDER intended to sell the oxycodone pills to other drug dealers for further distribution. Following the aforementioned negotiations, when stopped by law enforcement officers on August 14, 2014, ALEXANDER had $60,000 in a white paper bag, which monies were intended for the drug deal.
U.S. Attorney Green stated: “The opiate and heroin epidemic is an increasing national problem perpetuated by wholesale traffickers, like this defendant, who seek to exploit the addicted for profit. This sentencing should serve as a reminder of the significant prison terms and monetary penalties that await such offenders. I appreciate the efforts of the DEA and BRPD who continue to work together with our office and others in the law enforcement community to aggressively battle opiates and heroin.”
The investigation was conducted by the U.S. Drug Enforcement Administration and the Baton Rouge Police Department. The case was prosecuted by Assistant United States Attorneys Cam Le and Ryan Crosswell.
California Man Convicted of Conspiracy to Distribute Heroin in Operation Goldy LocksRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced yet another conviction arising from Operation Goldy Locks, an extensive investigation into a multi-state heroin enterprise.
EFRAIN BARAJAS, age 27, of Hesperia, California, pled guilty yesterday to conspiracy to distribute and possess with intent to distribute heroin, in violation of Title 18, United States Code, Section 846, as contained in an Indictment filed in October 2015. At the conclusion of the hearing, the Court accepted BARAJAS’ guilty plea, returned him to the custody of the United States Marshal, and scheduled the sentencing hearing for October 13, 2016.
During his guilty plea hearing before Chief U.S. District Judge Brian A. Jackson, BARAJAS admitted the following facts. Between January 1, 2014, and February 18, 2015, BARAJAS conspired with individuals in California and Louisiana to distribute thousands of pills pressed to resemble oxycodone that, in fact, contained heroin. Upon delivery of the pills to Baton Rouge from California, they were then distributed to mid-level drug dealers and drug abusers in East Baton Rouge and Livingston Parishes. BARAJAS admitted that during the period of the conspiracy, he transported over 30,000 pills containing heroin from California to Baton Rouge and delivered the pills to a significant heroin trafficker in Baton Rouge for further distribution. Barajas then transported significant sums of cash as payment for the heroin to a major heroin trafficker in California. BARAJAS was identified as part of a substantial heroin-trafficking and money-laundering conspiracy investigation that resulted in the indictment of BARAJAS and 10 other defendants.
U.S. Attorney Green stated: “My office, together with the DEA and our other federal, state, and local partners, will continue to aggressively pursue those responsible for distributing heroin and other dangerous drugs on our streets and in our neighborhoods. We should not be fooled about the impact of such crimes. The consequences are not only devastating to our communities generally, they are increasingly deadly.”
Stephen G. Azzam, Special Agent-in-Charge of the New Orleans Field Division of the U.S. Drug Enforcement Administration stated: “Heroin has become an epidemic in the greater Baton Rouge area and DEA is attacking the criminals who prey on the weak and addicted through their drug trafficking. This investigation targeted a pill form of heroin disguised as oxycodone. This type of heroin, as well as heroin laced with fentanyl, is growing in popularity across the country. As a result, the number of overdoses from this deadly drug is growing nationally, too. Because of persistent and collaborative efforts of multiple law enforcement agencies in the area, a major supplier of heroin to this region of Louisiana is out of business.”
The investigation was conducted by the U.S. Drug Enforcement Administration’s Tactical Diversion Squad and the Internal Revenue Service’s Criminal Investigation Division, with assistance from the Louisiana State Police, East Baton Rouge Parish Sheriff’s Office, Iberville Parish Sheriff’s Office, and Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Violent Felon Sentenced to 13 Years in Prison for Using Firearm to Obstruct JusticeRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that QUENTRELL D. FOUNTAIN, age 28, of Baton Rouge, Louisiana, was sentenced to serve 13 years in federal prison for discharging a firearm during the commission of a crime of violence (obstruction of justice). Specifically, the defendant was sentenced yesterday by U.S. District Court Judge John W. deGravelles to a 156-month term of imprisonment, which will be followed by a five (5) year term of supervised release. FOUNTAIN was also ordered to make restitution to his victim, to pay a $100 special assessment, and to forfeit the firearm and any other property used in his crime.
The sentence is a result of FOUNTAIN’s efforts to prevent law enforcement from learning about his possession of a firearm as a convicted felon, a federal crime. Specifically, on December 3, 2015, FOUNTAIN was convicted of discharging a firearm during the commission of a crime of violence (obstruction of justice), in violation of Title 18, United States Code, Section 924(c)(1)(A)(iii).
FOUNTAIN’s conviction arose from a series of events in January 2014. As FOUNTAIN admitted during his guilty plea, on January 8, 2014, he beat and threatened the victim, a former girlfriend, with a firearm, telling her that he was going to kill her. At the time, FOUNTAIN was a convicted felon prohibited from possessing a firearm, by virtue of a 2006 conviction for simple robbery. After law enforcement learned of the incident and began an investigation, the defendant threatened the victim again by phone, on several occasions. Then, on January 11, 2014, at approximately 3:20 a.m., FOUNTAIN drove to the victim’s home and fired multiple gunshots in the vicinity of the victim’s home, while the victim and her child were inside.
U.S. Attorney Green stated: “The protection of victims and witnesses is a top priority of this office. As this case illustrates, we will aggressively pursue anyone who attempts to harm or intimidate a victim or witness as a result of conveying information about a possible federal crime to 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 & Explosives, the Baton Rouge City Police, and the Port Allen City Police. It is being prosecuted by Assistant United States Attorneys Kevin Sanchez, M. Patricia Jones, and Fred Menner.
Owner and Chief Financial Officer of Healthcare Company Sentenced to Prison for Their Roles in Fraud SchemeRead the Press Release
BATON ROUGE, LA – BARBARA A. SADLER, age 63, of Zachary, Louisiana, and SEDRIC C. BLAKES, age 42, of Zachary, Louisiana, have been sentenced to federal prison arising out of their convictions in a multi-million dollar scheme to defraud the Louisiana Medicaid program through Extraordinary Care Network, Inc. (“Extraordinary”), an attendant care services company that SADLER and BLAKES owned and operated.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Walt Green of the Middle District of Louisiana, Special Agent in Charge CJ Porter of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent in Charge Jeff Sallet of the FBI’s New Orleans Division and Louisiana State Attorney General Jeff Landry made the announcement.
SADLER and BLAKES were previously charged by a federal grand jury, in a Superseding Indictment returned on June 25, 2015, with conspiring with others to commit healthcare fraud and wire fraud, in violation of Title 18, United States Code, Section 1349. The Superseding Indictment also included a forfeiture allegation requiring SADLER and BLAKES to forfeit the proceeds of their fraud if convicted. In connection with their guilty pleas previously entered before Chief U.S. District Judge Brian A. Jackson, both defendants admitted that they engaged in a multi-year scheme to defraud Medicaid, through the health care company that they owned and operated. SADLER admitted that she and others submitted fraudulent claims to Medicaid in which they falsely represented that Extraordinary Care had provided one-on-one attendant care services, when in fact such services had not been provided as represented. In furtherance of the scheme, SADLER admitted that she and her co-conspirators would fabricate progress notes, forge the signatures of unwitting company employees, and then use such documents as support for fraudulent claims to Medicaid for reimbursement. In her written plea agreement, SADLER admitted that the scheme caused a loss of more than $1 million. BLAKES also admitted that he, too, participated in the scheme and that he would fabricate progress notes and forge signatures of other employees in support of his and SADLER’s false claims.
At today’s sentencing, SADLER was sentenced to serve 44 months in federal prison, and BLAKES was sentenced to serve 36 months in prison. The defendants were ordered to make restitution in the amount of $1,200,000 to the Louisiana Department of Health and Hospitals. SADLER and BLAKES were each ordered to forfeit an additional $1,200,000 as the proceeds of their criminal activity. Finally, following their releases from prison, each defendant will be required to serve a 3-year term of supervised release.
U.S. Attorney Green stated: “Today’s sentences should serve as strong reminders of our strong commitment to combatting health care fraud in this district. Our office’s partnerships with the U.S. Department of Justice’s Criminal Fraud Section and the Louisiana Medicaid Fraud Control Unit continue to root out fraud and wrongdoing, and we will continue to aggressively pursue those who steal from the Medicare and Medicaid programs.”
FBI Special Agent in Charge Jeff Sallet said, “In close coordination with our state and federal partners, the New Orleans Division of the FBI will continue to work tirelessly in an effort to identify and pursue any individual or entity who would use fraud and deceit to steal taxpayer funds from the Medicare and Medicaid programs.”
Louisiana Attorney General Jeff Landry added, “It is unfortunate that there are people who defraud a program that was created to help those in need. I am proud of my Medicaid Fraud Control Unit for their assist on this investigation. My office is committed to protecting taxpayer money by prosecuting those who take advantage of the Medicaid system.”
This ongoing matter is being investigated by the Federal Bureau of Investigation (FBI) and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office (MFCU), and is being brought as part of the Medicare Fraud Strike Force, under the supervision of the United States Attorney’s Office and the Fraud Section of the Criminal Division of the U.S. Department of Justice. This case is being prosecuted by DOJ Trial Attorney Dustin M. Davis, current DOJ Trial Attorney and former Assistant U.S. Attorney Shubhra Shivpuri, and Assistant U.S. Attorney J. Brad Casey.
Federal Grand Jury Indicts Members of New Orleans Heroin Trafficking OrganizationRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green of the Middle District of Louisiana announced today the unsealing of a federal grand jury indictment against five members of a heroin trafficking network operating in the St. Roch neighborhood of New Orleans. As detailed below, the indictment charges the defendants with serious drug trafficking offenses.
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Miguel L. Joseph, also known as “Pretty,” age 29, of New Orleans, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute heroin; distribution of heroin; unlawful use of a communications facility; and forfeiture.
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Edward Lawrence, also known as “Burger,” age 32, of New Orleans, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute heroin; distribution of heroin; unlawful use of a communications facility; and forfeiture.
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Vantrell Toomer, age 44, of Houston, Texas, and New Orleans, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute heroin; possession with intent to distribute heroin; and forfeiture.
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Michelle Marie Jefferson, age 31, of New Orleans, Louisiana, is charged with charged with conspiracy to distribute and possess with the intent to distribute heroin; unlawful use of a communications facility; and forfeiture.
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Danielle Denise Taylor, age 42, of New Orleans, Louisiana, is charged with charged with conspiracy to distribute and possess with the intent to distribute heroin; and forfeiture.
United States Attorney Green stated: “Our office, together with the FBI and our other federal, state, and local law enforcement partners, will aggressively pursue those who contribute to the heroin epidemic raging across our communities and country. I greatly appreciate the dedication of the agents and prosecutors working on this important matter.”
FBI New Orleans Division Special Agent-in-Charge Jeff Sallet stated: “The FBI and the people of New Orleans will not tolerate the scourge of gang activity including narcotics distribution and violence which accompanies this behavior. The New Orleans Gang Task Force is committed to bringing those involved in this illegal behavior to justice and dismantling criminal organizations we encounter during the course of our investigations.”
This matter is being investigated by the FBI New Orleans Division's Gang Task Force, with the assistance of the New Orleans Police Department, the St. Tammany Parish Sheriff's Office, the Jefferson Parish Sheriff's Office, and the Orleans Parish District Attorney's Office. This matter is being prosecuted by Assistant United States Attorneys Cam T. Le and Ryan Rezaei of the Middle District of Louisiana, who are serving as Special Attorneys to the United States Attorney General.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
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Two More Convicted in Multi-State Heroin RingRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that two more defendants have been convicted in Operation Goldy Locks for their roles in a multi-state heroin ring which involved disguising heroin as oxycodone pills in order to maximize profits. Both defendants remain in custody and are scheduled to be sentenced on September 1, 2016. A total of eleven (11) defendants were indicted in this matter. Five (5) defendants have been convicted thus far.
On May 18, 2016, JUSTIN R. SCOTT, age 32, of Baton Rouge, Louisiana, pled guilty before Chief U.S. District Judge Brian A. Jackson to conspiring to distribute and possess with intent to distribute heroin, in violation of Title 21, United States Code, Section 846. Scott admitted that, between January 1, 2014, and February 18, 2015, he conspired with individuals in California and Louisiana to distribute thousands of heroin pills that had been pressed to resemble oxycodone. Once delivered to Baton Rouge from California, the pills were distributed to mid-level drug dealers and ultimately sold to drug abusers in East Baton Rouge and Livingston Parishes. Scott admitted to knowing that the pills contained heroin and that he intended to sell and profit from the sale of significant amounts of heroin.
On May 18, 2016, KEENAN HARRIS, JR., age 36, of Denham Springs, Louisiana, pled guilty before Chief Judge Jackson to distributing heroin, in violation of Title 21, United States Code, Section 841. Specifically, he admitted to re-distributing over 500 heroin pills on October 14, 2014, which he had received from Scott and which had been pressed to resemble oxycodone.
U.S. Attorney Green stated: “This case illustrates one of the many dangers associated with the use of any illegal drugs, namely, the inability of the user to know for sure what is contained in the drugs purchased. This danger can indeed be fatal. I am grateful for the hard work of the DEA, the prosecutor from my office, and the many federal, state, and local law enforcement agencies who collectively pursued this criminal organization.”
Eric L. Watson, the Acting Assistant Special Agent-in-Charge of the New Orleans Field Division of the U.S. Drug Enforcement Administration stated: “By removing these criminals from the streets of Louisiana, they can no longer distribute this toxic poison to our communities. Through remarkable partnerships with state, federal and local law enforcement, we are making major progress in preventing heroin trafficking from taking hold in our communities. This investigation is a compelling example of that success."
This matter was investigated by the U.S. Drug Enforcement Administration’s Tactical Diversion Squad in the Baton Rouge Office and the Internal Revenue Service - Criminal Investigation Division, with assistance from the Louisiana State Police, East Baton Rouge Parish Sheriff’s Office, Iberville Parish Sheriff’s Office, and Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Florida Man Convicted of Cocaine Conspiracy Involving over 5 KilogramsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that JACOBO GARCIA, age 28, of Ft. Meyers, Florida, pled guilty before U.S. District Judge Shelly D. Dick to conspiring to possess with the intent to distribute over five kilograms of cocaine. Following his conviction, GARCIA was remanded into the custody of the U.S. Marshal’s Service. A sentencing hearing has not yet been scheduled.
During his guilty plea hearing, GARCIA admitted that, on February 29, 2016, Baton Rouge Police Officers found 5.7 kilograms of cocaine hidden in the gas tank of GARCIA’s vehicle. The cocaine was packaged in fifteen (15) vaccum sealed bags. GARCIA admitted that he and a passenger had picked up the aforementioned cocaine in Houston, Texas.
U.S. Attorney Green stated: “This case is yet another example of the drug pipeline that runs through and into our district. We will continue to work aggressively with the DEA, the Baton Rogue Police Department, and our many other federal, state, and local law enforcement partners to fight this menace.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Drug Enforcement Administration, and the Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Baton Rouge Attorney Charged with Distribution and Possession of Child PornographyRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment charging CHRISTOPHER G. YOUNG, age 53, of Baton Rouge, Louisiana, with distribution of child pornography and possession of child pornography.
According to the Indictment, YOUNG was the part-owner of a hotel in the country of Costa Rica, where he traveled frequently for business and leisure. YOUNG allegedly received two videos depicting prepubescent boys engaging in bestiality from an associate in Costa Rica. From 2013 through 2015, YOUNG allegedly distributed the child pornography videos to approximately 38 different individuals, on 33 separate occasions, through his smart phones.
The case is being investigated by the Federal Bureau of Investigation. This matter is being prosecuted by Assistant United States Attorneys Cam T. Le and René I. Salomon.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Former Office Manager of Baton Rouge Surgery Group Convicted of Wire FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that LORRIE LYNN ROGERSON, age 57, of Baton Rouge, Louisiana, has pled guilty before U.S. District Judge John W. deGravelles to engaging in a wire fraud scheme to defraud the Pediatric Surgery of Louisiana (“PSL”), a group of Baton Rouge physicians who specialize in surgery on children. As a result of the scheme, Rogerson embezzled approximately $430,490 from PSL. The sentencing date has not yet been set.
PSL employed Rogerson to act as their office manager. Rogerson was responsible for PSL’s payroll, accounts receivable, accounts payable, and human resources. In her role, Rogerson enjoyed access to the bank accounts of PSL for the purpose of making deposits to, and paying bills from, the PSL bank account. Rogerson was entrusted with the authority and responsibility to manage PSL’s banking affairs. Rogerson had access to all accounts and was familiar with PSL’s account information.
In April 2015, a review of PSL financial records discovered that Rogerson had accessed PSL’s bank account to make unauthorized withdrawals and transfers for her personal benefit. Between May 2008 and May 2015, Rogerson caused unauthorized electronic withdrawals to be made from the PSL bank account for the purpose of paying Rogerson’s credit cards. Rogerson also issued numerous, unauthorized PSL checks for her benefit, and mischaracterized said checks in the accounting software as business expenses.
Rogerson embezzled funds on approximately 256 occasions during the period of May 2008 and May 2015. In order to execute the scheme to defraud on January 5, 2015, Rogerson used internet services to divert funds from a PSL bank account for the purpose of paying her personal credit card bills.
U.S. Attorney Green stated: “Insider fraud continues to be one of the biggest threats facing our business community. Together with the FBI and our other federal, state, and local partners, we will continue to aggressively meet and pursue this threat through federal criminal investigations and prosecutions. We commend the victim, PSL, for its cooperation and assistance in this matter.”
FBI Special Agent-In-Charge Jeffrey S. Sallet stated: “This case is yet another example of the FBI’s commitment to work with our partners at the United States Attorney’s Office to investigate and prosecute individuals who willingly violate the law in order to personally enrich themselves at the expense of others.”
This matter is being prosecuted by the United States Attorney’s Office for the Middle District of Louisiana. The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation, with substantial assistance provided by the victim, PSL and their accountants. The matter is being prosecuted by Assistant United States Attorney René Salomon.
Florida Man Sentenced to Prison for Illegal Diet Pill SchemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Judge John W. deGravelles sentenced JOHN WESLEY HOAG, age 52, of Ft. Lauderdale, Florida, to fifty (50) months in federal prison for his scheme to sell illegal and mislabelled diet pills to victims throughout the United States, including Louisiana. HOAG was ordered to serve a two year term of supervised release following his release from imprisonment. HOAG was also ordered to pay a fine of $7,500 and to forfeit all property traceable to the gross proceeds of the scheme, including but not limited to $679,116.33.
At the conclusion of the sentencing, the Court ordered HOAG to begin serving his sentence immediately and remanded HOAG to the custody of the United States Marshal.
On July 29, 2015, HOAG pled guilty to engaging in a conspiracy to distribute and possess with the intent to distribute sibutramine, in violation of Title 21, United States Code, Sections 846 and 2, and introducing misbranded drugs into interstate commerce, in violation of Title 21, United States Code, Sections 331(a) and 2. This conduct was part of a multi-state scheme to illegally distribute diet pills containing sibutramine, a Schedule IV controlled substance, which were falsely labeled and marketed as “all natural” dietary supplements. Sibutramine was the active pharmaceutical ingredient in Meridia, a prescription weight loss drug removed from the market in 2010 following studies that showed significantly increased risk of strokes and heart attacks. Since the removal of Meridia, no drug containing sibutramine has been approved for use in humans in the United States.
In a related case, on March 22, 2016, following a seven-day trial, a federal jury convicted DARLENE V. KRUEGER, age 54, of Destrehan, Louisiana, on three counts of distribution of sibutramine and three counts of introduction of misbranded drugs into interstate commerce. The sentencing date has not yet been set.
U.S. Attorney Green stated: “Today’s sentence sends a strong message to the community that my office and our law enforcement partners take the distribution of illegal drugs, in all forms, extremely seriously. Those who peddle illegal substances in this district for profit will face stiff penalties, regardless of whether they peddle those drugs on our street corners or over the internet. I want to express my sincere gratitude to the dedicated law enforcement agents and the prosecution team who investigated and prosecuted this complex case and dismantled this defendant’s drug distribution ring.”
“Consumers are put at serious risk when they are unknowingly exposed to undeclared active pharmaceutical ingredients in products falsely labeled as natural dietary supplements,” said Robert J. West, Special Agent-in-Charge, Miami Field Office, FDA Office of Criminal Investigations. “Our office will continue to defend the public’s health by ensuring that dietary supplements are accurately labeled, and do not contain dangerous undeclared active pharmaceutical ingredients.”
This matter was handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the U.S. Food and Drug Administration’s Office of Criminal Investigations, with the assistance from other FDA components; the Louisiana State Police; the Drug Enforcement Administration; the Slidell, Louisiana, Police Department; and the Ft. Lauderdale, Florida, Police Department. The matter was prosecuted by Assistant United States Attorneys Cam T. Le and Paul L. Pugliese.
Health care professionals and patients are encouraged to report adverse events or side effects related to the use of these products to the FDA. For more information regarding dietary supplements and to report adverse events, please visit the FDA’s website at http://www.fda.gov/Food/DietarySupplements/.
Violent Felon Sentenced to More Than 10 Years in Prison for Illegal GunRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that Michel Keith Lands, age 42, of Baton Rouge, Louisiana, has been sentenced to a total of 125 months in federal prison as a result of possessing a firearm while a convicted felon and violating the terms of his supervised release.
In the early hours of November 14, 2014, Baton Rouge City Police (BRPD) was called to a home on Byron Street. The caller told police that Lands had a gun, had fired a shot, and was attempting to kill the occupants of the home. After a struggle, BRPD apprehended Lands and recovered two spent .40 caliber shell casings and recovered one expended bullet slug all from inside the house. The BRPD also recovered a .40 caliber semi-automatic pistol with four live .40 caliber rounds in the magazine. Lands had previously been convicted of federal and state felony offenses which prohibited him from ever possessing any type of firearm.
Based on the November 2014 incident, Lands was indicted and convicted of being a felon in possession of a firearm. Senior U.S. District Court Judge James J. Brady today sentenced Lands to 110 months imprisonment. Also, because Lands was on federal supervised release at the time of the November 2014 incident, the Court found that Lands violated the terms of his supervised release and sentenced him to an additional 15 months in federal prison for the violation.
U.S. Attorney Walt Green stated: “This is another example of the danger posed by felons with guns. Keeping our communities safe from such criminals will continue to be one of my office’s highest priorities.”
This matter was prosecuted by Assistant United States Attorney Lyman E. Thornton III and investigated by the Baton Rouge Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Businessman Indicted for Fraud and Money Laundering Involving Charter School ConstructionRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment against NATHIAN D. HOSSLEY, age 50, of Baton Rouge, Louisiana. The indictment charges the defendant with five counts of wire fraud, in violation of Title 18, United States Code, Section 1343, one count of mail fraud, in violation of Title 18, United States Code, Section 1341, and one count of engaging in monetary transactions in property derived from specified unlawful activity, in violation of Title 18, United States Code, Section 1957. The indictment also includes a forfeiture allegation which requires the defendant to forfeit the proceeds of his fraud if convicted.
The Indictment alleges that the defendant engaged in a scheme to defraud Bouma Construction ("Bouma"), a full-service construction company headquartered in Grand Rapids, Michigan, from March 2014 through December 2014. According to the Indictment, Bouma hired a company owned by the defendant, First Millennium Construction ("FMC"), to serve as a subcontractor in the construction of the Impact Charter School in Baker, Louisiana.
The Indictment further alleges that, unbeknownst to Bouma, the defendant provided false information in a "Qualification Statement" submitted to Bouma in connection with FMC’s bid for the Impact Charter School project. Additional allegations in the Indictment state that, without knowledge of the defendant’s history of federal convictions, Bouma hired FMC and agreed to pay over $1.2 million for its work on the project.
The Indictment further alleges that, after being hired, the defendant submitted, or caused to be submitted through FMC employees, multiple applications for disbursements of payments by Bouma to FMC in accordance with their contractual agreement. These applications for payments allegedly made false representations related to the amount of work that had been completed by FMC and the amount of money that FMC had paid and still owed to certain subcontractors. It also allegedly omitted the names of numerous subcontractors to which the defendant owed money for work on the project.
The defendant also allegedly forged and caused to be forged signatures of certain FMC subcontractors on joint check agreements and lien waivers for the purpose of obtaining $96,125 in joint checks from Bouma. According to the Indictment, the defendant then forged or caused to be forged the subcontractors’ endorsements on these checks, which were then deposited into the FMC’s bank account. This money was allegedly intended for the four subcontractors, not FMC. Finally, the Indictment alleges that the defendant arranged for another individual to submit a false affidavit claiming responsibility for the forged signatures, which was then sent to the District Attorney for the 19th Judicial District.
The Indictment alleges further that Bouma ultimately paid over $948,000 to FMC, less than half of which was paid to subcontractors to which the defendant owed money for work on the Impact Charter School project and that, during the relevant time period, the defendant diverted tens of thousands of dollars from FMC’s bank account to sources which benefitted him personally.
United States Attorney Green stated: "My office is committed to rooting out and aggressively pursuing dishonest businesspeople who seek to advance themselves through fraud. We look forward to continuing to work closely with the FBI and our other federal, state, and local partners to appropriately address any such criminality."
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Ryan Crosswell and Rene Salomon.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.