Middle District of Louisiana
Press releases recorded for this federal judicial district.
Louisiana Woman Indicted for Child Sex TraffickingRead the Press Release
WASHINGTON – An indictment was unsealed today charging a Louisiana woman with offenses related to her 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 Michael J. Anderson of the FBI New Orleans Division.
Kellie M. Dominique, 36, of Baton Rouge, Louisiana, was indicted today for sex trafficking of a minor, attempted sex trafficking of a minor, obstruction of justice and four counts of use of an interstate facility in aid of racketeering.
According to the indictment, Dominique allegedly promoted a prostitution business out of her home and other venues in Baton Rouge, Louisiana. The indictment alleges that a minor worked as a prostitute for Dominique, and that, to promote Dominique’s prostitution business, the minor and others allegedly used the website “backpage.com” to post classified advertisements for commercial sex acts.
The charges and allegations in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty.
This case is being investigated by the FBI New Orleans Division, Louisiana Attorney General’s Office, Louisiana State Police and East Baton Rouge Parish Sheriff’s Office, with assistance from the Baton Rouge Police Department’s Narcotics Division, the U.S. Marshals Service Fugitive Task Force and other law enforcement agencies. The case is being prosecuted by Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Jamie A. Flowers Jr. of the Middle District of Louisiana.
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 the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Baton Rouge Woman Sentenced to 38 Months for Embezzling $465,000 from Former EmployerRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that LORI S. FRY, age 47, of Baton Rouge was sentenced by Chief U.S. District Judge Brian A. Jackson to 38 months in federal prison, following her convictions of nine counts of wire fraud, in violation of Title 18, United States Code, Section 1343. FRY was also ordered to make restitution to her victims totaling approximately $465,444, and she will be required to forfeit the proceeds of her criminal scheme. Following her release from prison, FRY will be required to serve a term of supervised release.
FRY began working at inoLECT, an engineering firm in Baton Rouge, in 2006. From April of 2009 through August of 2012, while employed as a manager and bookkeeper at the firm, FRY diverted over 100 separate payments from the company’s bank account either to her own personal bank accounts or to pay her credit cards. FRY created false entries in the company’s internal records to advance and conceal her scheme. In total, FRY embezzled approximately $465,000 from the company’s bank account.
U.S. Attorney Walt Green stated, “My office will continue to make fraud and embezzlement prosecutions a high priority, as we work to hold corrupt insiders such as this defendant accountable for their crime. The defendant’s actions in the case were especially egregious in that she not only betrayed the trust placed in her by her employer, but that this was her second conviction for embezzlement. Criminal conduct like this undermines the financial health of honest businesses and can threaten jobs held by honest employees. The fact that the Court ordered the defendant immediately remanded into federal custody following today’s sentencing speaks to the serious nature of this offense. I appreciate the thorough investigation performed in this case by the Federal Bureau of Investigation.”
This matter was investigated by the Baton Rouge office of the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Frederick A. Menner, Jr. and Special Assistant United States Attorney J. Brad Casey.
Bertha Croom Convicted of Stealing over $125,000 from Social Security AdministrationRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced that Bertha Augustus Croom, age 60, of Baton Rouge, Louisiana, pled guilty on Monday, July 6, 2015 before United States District Judge Shelly Dick to defrauding the U.S. Social Security Administration for more than a decade.
Croom pled guilty to a Bill of Information which alleged that she stole and converted to her own use $127,137 in Retirement Survivor Insurance funds of the Social Security Administration (“SSA”), which she received in the name of her deceased mother. The funds were stolen over the course of 18 years. The government funds misappropriated were retirement survivor funds to which Croom’s mother was entitled, as long as she was alive.
On multiple occasions, Croom falsely represented to SSA that her mother was alive, residing with her, and that she (Croom) was expending the government retirement survivor funds for the benefit of her mother. The funds were disbursed by SSA and collected by Croom beginning on or about March 3, 1995 and continuing through January 3, 2013. According to the East Baton Rouge Coroner’s Office, however, Croom’s mother had died on February 8, 1995.
On multiple occasions between 2011 and 2013, Croom submitted Verification Forms to SSA in which she falsely represented that her mother resided with her (Croom). Additionally, Croom advised SSA in writing that she (Croom) and her mother used the SSA payments to share the cost of living together.
This matter was investigated by the Office of Inspector General for the Social Security Administration. It is being prosecuted by Assistant United States Attorney René Salomon.
Louisiana U.S. Attorneys Announce Grant Awards Totaling Almost $29 Million to Support State and Local Law EnforcementRead the Press Release
BATON ROUGE, LA – United States Attorneys Walt Green of the Middle District of Louisiana, Stephanie Finley of the Western District of Louisiana, and Kenneth Polite of the Eastern District of Louisiana jointly announced today that the U.S. Department of Justice has awarded almost $29 million to the Louisiana Commission on Law Enforcement (LCLC), which is approximately three times the amount of the previous year’s awards.
LCLE is a state agency whose mission is to promote public safety by providing progressive leadership and coordination within the criminal justice community and to continue to improve the operations of the criminal justice community. U.S. Department of Justice awards, such as those being announced today, advance the LCLE’s mission by supporting the development, coordination, and implementation of broad system-wide programs, and by assisting in the improvement of the state’s criminal justice community through the funding of innovative, essential and needed initiatives at the state and local level.
U.S. Attorney Green stated: "We are extremely pleased to announce our increased support and partnership with LCLE, one of our most important state-wide law enforcement partners. Chairman Sid Gautreaux and the other LCLE members have worked seamlessly with my office and other components of the U.S. Department of Justice in the pursuit of justice and security for everyone in this state. Today’s announcement reflects our deep commitment to assist, support, and enhance state and local law enforcement efforts in Louisiana through the LCLE. These awards strengthen our unity and our collective efforts against crime.”
U.S. Attorney Finley stated: “This increase in funding to the LCLE shows the Justice Department’s commitment to this program. We are eager to continue working with the LCLE and look forward to an increased partnership in the coming year. These funds will allow the LCLE to provide training and technical assistance to law enforcement statewide and to implement programs that will further its mission to improve the criminal justice system. I think that this is a major step in support of law enforcement that will benefit our communities statewide.”
U.S. Attorney Polite stated: “These vital awards will help fight crime and build safer communities across our state. We look forward to our continued work with LCLE in pursuing justice for all Louisiana residents.”
East Baton Rouge Parish Sheriff Sid Gautreaux, who serves as the LCLE Chairman, stated: “I am extremely proud that we have been able to secure this additional funding that will enhance and strengthen what is already a strong partnership focused on making our community safer. With the increased grant money we will be able to commit more personnel and resources through our local, state and federal partners in order to continue to combat drugs, illegal weapons and overall crime. Since taking office I have been committed to a level of unprecedented collaboration with our partners that only gets better with each year.”
Another Indicted for Role in Identity Theft and Tax Fraud SchemeRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced another indictment in connection with a continuing effort to combat stolen identity refund fraud and other tax fraud schemes by the United States Attorney’s Office for the Middle District of Louisiana and the Baton Rouge Office of the Internal Revenue Service, Criminal Investigations.
In the most recent case, CAMERON BUTLER, age 33, of Baton Rouge, Louisiana, was indicted this week on six counts of receiving stolen government funds, in violation of Title 18, United States Code, Section 641. The indictment alleges that BUTLER obtained more than $100,000 in federal tax refunds, via electronic deposits to bank accounts he controlled, knowing that the refunds belonged to other taxpayers and that he was not entitled to the funds. If convicted, the defendant faces a significant term of imprisonment, fines, restitution, and the forfeiture of the proceeds from the alleged scheme.
This indictment follows the recent convictions of TA’SHA THOMAS, age 26, of Donaldsonville, Louisiana, and SHONDA V. JOHNSON, age 42, of Baton Rouge, Louisiana, both of whom have been convicted for their roles in an extensive stolen identity refund fraud scheme. On June 22, 2015, THOMAS pled guilty to access device fraud and aggravated identity theft. As THOMAS admitted, through her work at the Ascension Parish Health Unit, she gained access to personal identifying information of individuals in a database and sold the information to Mona Hill, who in turn used the information to file fraudulent federal tax returns, ultimately receiving more than $400,000 based on such returns. THOMAS admitted that, between January and August of 2012, she sold more than 400 access devices to Mona Hill in exchange for between $8,000 and $9,000.
Meanwhile, on July 1, 2015, JOHNSON pled guilty to three counts of receipt of stolen government property. As JOHNSON admitted, after Hill filed the fraudulent federal tax returns mentioned above, JOHNSON obtained several of the tax refunds, knowing that the refunds belonged to other taxpayers and that she was not entitled to the funds.
Mona Hill has been separately prosecuted and convicted by this office. Hill was sentenced to serve sixty-five months in federal prison and pay $491,268.18 in restitution to the IRS. THOMAS and JOHNSON are awaiting sentencing.
U.S. Attorney Green stated: “Our office will continue to dedicate ourselves to working with IRS-CI and our other partners to unravel complex fraud schemes involving identity theft and tax refunds. Such schemes prey on honest taxpayers and must be stopped. I greatly appreciate the dedicated efforts of the agents and prosecutors handling these important cases.”
“We will continue to work aggressively with the United States Attorney's Office to protect innocent taxpayers and preserve the integrity of our tax system” said Jerome R. McDuffie, Special Agent-in-Charge, IRS Criminal Investigation. “We will vigorously pursue fraudulent refund claims. Protecting taxpayers’ money and personal information will remain one of our core missions.”
This ongoing investigation is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Operation Third World Results in Federal Indictment Against 39 DefendantsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of a 58 page federal indictment charging 39 defendants in Operation Third World, an extensive investigation aimed at dismantling a violent drug trafficking network primarily operating out of Baton Rouge and Ascension Parish.
The indictment charges significant drug trafficking, racketeering, firearm, and conspiracy charges, including allegations of a murder plot, threats to use a hatchet to cut off fingers, use of a daycare to distribute and store cocaine and proceeds from cocaine sales, and using a child to help transport 18 kilograms of cocaine. When the defendants were recently arrested pursuant to the indictment, agents seized cocaine, a stolen AR-15, a shotgun, three handguns, and substantial amounts of cash believed to be drug proceeds. On a previous occasion, agents seized 6 firearms and over $150,000 in cash as part of this operation.
The charged defendants are listed below. They face significant terms of imprisonment, fines, and the forfeiture of proceeds from the illegal activity, although one of the charged defendants was killed on the day of the indictment.
- Kelly D. Williams, age 39, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of 28 grams or more of crack cocaine; distribution of oxycodone; conspiracy to acquire controlled substances by fraud; felon in possession of a firearm; unlawful use of communications facilities; and forfeiture.
- Charles C. London, age 39, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of MDMC and BZP; distribution of 28 grams or more of crack cocaine; distribution of cocaine, MDMC and 4-FMC; distribution of cocaine and BZP; distribution of cocaine; possession with intent to distribute BZP; felon in possession of a firearm; possession of a firearm in furtherance of a drug trafficking crime; unlawful use of communications facilities; and forfeiture.
- C’Prien C. Nicholas, age 30, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with intent to distribute 5 kilograms or more of cocaine; unlawful travel in aid of a racketeering enterprise; unlawful use of communications facilities; and forfeiture.
- Demitoris C. Alexander, age 49, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with intent to distribute 5 kilograms or more of cocaine; unlawful use of communications facilities; and forfeiture.
- Tachi J. Williams, age 29, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Artey D. Foulcard, age 36, of Franklin, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Sylvester S. Smith, age 35, of Houston, Texas, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Myron Chevelle Hart, age 37, of Baker, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of 28 grams or more of crack cocaine; unlawful use of communications facilities; and forfeiture.
- Donald Sanders, Jr., age 38, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Derrick D. Hilliard, age 38, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Willie C. Lewis, age 37, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Sekari Davis Washington, age 37, of Zachary, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; conspiracy to acquire controlled substances by fraud; unlawful use of communications facilities; and forfeiture.
- Christopher Montrell Cooper, age 21, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Clarence White, age 51, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Vernon A. Powell, age 34, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Devon D. Foster, age 36, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Kenneth W. Gardner, age 57, of Zachary, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Eric O’Neal Selders, age 43, of Independence, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- James Edward Allen, age 32, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Colin Y. Knox, age 37, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Dwan M. Delavallade, age 38, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Kelvin Ronelle Johnson, age 37, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine, MDMC and 4-FMC; unlawful use of communications facilities; and forfeiture.
- Demarcus D. Norris, age 38, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Gerry Earl Griffin, age 44, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of oxycodone; unlawful use of communications facilities; and forfeiture.
- Kimberly Ann London, age 37, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Gregory C. Walker, age 51, of Donaldsonville, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- D’Andre Tavis Smith, deceased.
- Jeremy James Washington, age 36, of Donaldsonville, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Rudy McVay Cain, II, age 28, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Myron Derell Mills, age 35, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Johnny C. Alexander, age 34, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with intent to distribute 5 kilograms or more of cocaine; unlawful travel in aid of a racketeering enterprise; and forfeiture.
- Andrea Rose Rumore, age 33, of Thibodaux, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful travel in aid of a racketeering enterprise; unlawful use of communications facilities, and forfeiture.
- Stephanie A. Zeringue, age 28, of Thibodaux, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Susan Lynn Zeringue, age 32, of Thibodaux, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful travel in aid of a racketeering enterprise; and forfeiture.
- Ashley H. Hebert, age 26, of Thibodaux, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful travel in aid of a racketeering enterprise; and forfeiture.
- Joseph D. Sergent, age 34, of New Orleans, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute MDMA and forfeiture.
- Keeyon Mondrell Sanders, age 33, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute MDMA and forfeiture.
- Jerron Albritton, age 20, of Baton Rouge, Louisiana, is charged with possession with intent to distribute marijuana and forfeiture.
- Barbara Deyatta Jordon, age 25, of Baton Rouge, Louisiana, is charged with misprision of a felony and forfeiture.
U.S. Attorney Green stated: “This indictment, which contains chilling allegations of a murder plot and other violence, is aimed squarely at the heart of a violent drug trafficking organization allegedly responsible for spreading significant amounts of crack cocaine, powder cocaine, MDMA, and other illegal drugs throughout our district. Every community and every person deserves peace, security, and freedom from the tyranny of violent drug traffickers. This indictment seeks to advance that goal. The combined federal, state, and local effort, which resulted in the indictment, reflects once again the unified front against crime in this district. I greatly appreciate the tremendous dedication and hard work by the agents and prosecutors working on this important matter.”
Joseph Shepard, the Assistant Special Agent-in-Charge of the New Orleans Division of the U.S. Drug Enforcement Administration, stated: “The benchmark for the success of any operation lies in the ties that bind the brotherhood of law enforcement officers who put their lives on the line each and every day to rid our communities of dangerous drugs. DEA’s complex Operation Third World did exactly that. With the Middle District U.S. Attorney’s Office leading the charge, DEA Baton Rouge and our area partners dealt a significant blow to a violent poly drug trafficking organization once thought to be untouchable. Today’s efforts prove that with investigative grit and community involvement, all drug dealers can be touched. This is only the beginning.”
East Baton Rouge Parish Sheriff Sid Gautreaux stated: “I am honored that the East Baton Rouge Sheriff’s Office was part of this important operation. I will continue to dedicate our resources and personnel to fight illegal drug and gun trafficking. We will work with our local, state, and federal counterparts to aggressively combat crime that plagues our community.”
Ascension Parish Sheriff Jeff Wiley stated: “This is the culmination of weeks and months of hard, dangerous work by a team of agents from federal and local agencies. The fruits of this effort are in the arrests of major drug dealers in and around Ascension Parish. It is evidence, once again, that joint operations are the key to success and we look forward to timely prosecution and significant jail sentences for these high level drug dealers.”
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 Sheriff’s Office, the Ascension Parish Sheriff’s Office, the Louisiana State Police, the Iberville Parish Sheriff’s Office, the Livingston Parish Sheriff’s Office, the Gonzales Police Department, and the Baker Police Department. This matter is being prosecuted by Assistant United States Attorneys Jennifer Kleinpeter, Cam Le, and Adam Ptashkin, with assistance from Assistant United States Attorneys Robert Piedrahita, Kevin Sanchez, and Jamie Flowers.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
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.
Former Systems Administrator Charged with Intentionally Damaging ComputersRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced that former Georgia-Pacific IT specialist and systems administrator BRIAN P. JOHNSON, age 43, of Baton Rouge, Louisiana, was arrested this morning after his indictment last week by a federal grand jury for intentionally damaging protected computers. The indictment charges that, from February 14, 2014 through February 27, 2014, JOHNSON intentionally damaged protected computers and thereby caused more than $5000 in losses to Georgia-Pacific entities.
In an affidavit filed in support of an application for a warrant to search JOHNSON’s home, FBI Special Agent David B. Clarke alleged that, a few hours after JOHNSON’s employment was terminated by Georgia-Pacific on February 14, 2014, Georgia-Pacific computer systems were attacked from a computer address assigned to JOHNSON. Over the next several days, according to Special Agent Clarke, Georgia-Pacific experienced multiple system failures as a result of continued attacks believed to have been instigated by JOHNSON.
If JOHNSON is convicted of the charged offense, he faces a term of imprisonment of up to ten years and a fine of up to $250,000 or twice the amount of loss suffered by Georgia-Pacific.
United States Attorney Green stated, “Cyber crime is one of the highest priorities of the Department of Justice. Attacks on computer systems threaten our security, our economy, and our privacy. Our office is committed to pursuing cyber criminals and to seeking justice and restitution for the companies and individuals they victimize.”
This matter is being investigated by the United States Attorney’s Office for the Middle District of Louisiana and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys M. Patricia Jones and Ryan R. Crosswell.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless he is adjudicated guilty at trial or through a guilty plea.
Former Healthcare Executive Convicted of Embezzling over $200,000 from Non-Profit OrganizationRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the conviction of TRAVIS TEMPLET, age 36, of Gonzales, Louisiana, who pled guilty today before U.S. District Judge John W. DeGravelles to engaging in a wire fraud scheme to defraud a non-profit health care organization, in violation of Title 18, United States Code, Section 1343. The defendant faces imprisonment and substantial fines, restitution orders, and forfeiture orders. The sentencing date has not yet been set.
In 2008, the defendant began working as the controller for a non-profit organization headquartered in Baton Rouge that manages nursing homes throughout Louisiana and Arkansas. During today’s hearing, the defendant admitted to using his position as controller to steal more than $208,307 from the organization from 2011 through 2014. He admitted doing so by writing approximately 67 fraudulent checks to himself from the organization’s account. To conceal the fraud, the defendant admitted that he altered the organization’s accounting records and software. He ultimately deposited the proceeds of his fraud into one of his personal accounts.
U.S. Attorney Green stated, “Fraud schemes perpetrated by insiders, particularly those entrusted with an organization’s finances, pose a serious threat to all organizations and, by extension, their employees. Our office will continue to aggressively pursue such matters, along with our federal, state, and local partners. Once identified, these fraudsters must not be allowed to simply move to their next victim employer. Employers and law enforcement must work together to stop them. I applaud the victim organization for uncovering the fraud and assisting in this important matter.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Baton Rouge Office of the United States Secret Service, and the East Baton Rouge Parish Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Former Public Health Care Employee Convicted of Selling More Than 400 Social Security Numbers Used in Fraudulent Tax Refund SchemeRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that TA’SHA THOMAS, age 26, of Donaldsonville, Louisiana, pled guilty before Senior U.S. District Judge James J. Brady to access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
During the guilty plea hearing, THOMAS admitted to gaining access to personal identifying information of individuals in the COMPASS database through her work at the Ascension Parish Health Unit. She also admitted to taking the personal identifying information and selling it to Mona Hill, who in turn used the information to file fraudulent federal tax returns, ultimately receiving more than $400,000 based on such returns. As THOMAS admitted, between January and August of 2012, she sold more than 400 access devices to Mona Hill. In exchange, THOMAS was paid between $8,000 and $9,000. Mona Hill has been separately prosecuted and convicted by this office. Hill was sentenced to serve sixty-five months in federal prison and pay $491,268.18 in restitution to the IRS.
U.S. Attorney Green stated: “My office will continue to aggressively pursue criminals who commit identity theft and use those stolen identities to defraud the United States and line their own pockets. We look forward to continuing to work with our partners at IRS-CI and other agencies in the fight against such conduct.”
“We are pleased with the conviction of Ms. Thomas. The IRS will aggressively pursue individuals who are involved in stolen identity refund fraud,” said Jerome R. McDuffie, Special Agent-in-Charge, IRS Criminal Investigation. “This case should serve as a strong warning to those who are considering similar conduct. Law enforcement will relentlessly pursue those who steal the identities of unsuspecting individuals.”
This ongoing investigation is being conducted by the Internal Revenue Service’s Criminal Investigation Division. This matter is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Baton Rouge Man Convicted of Possessing Child Pornography and Making False Statements to the FBIRead the Press Release
BATON ROUGE, LA - United States Attorney J. Walter Green announced today that PIERRE A. MOOSEBROKER, JR., age 46, of Baton Rouge, Louisiana, has pled guilty before U.S. District Judge James J. Brady to possession of child pornography, in violation of Title 18, United States Code, Section 2252A(a)(5)(B), and making false statements to Special Agents with the Federal Bureau of Investigation, in violation of Title 18, United States Code, Section 1001(a)(2).
During the guilty plea hearing yesterday, the defendant admitted to obtaining and possessing images of prepubescent child pornography and to lying to the FBI about, among other things, having never planned to force a female child to engage in sexual activity with him. In the plea agreement, which remains subject to Court approval, the parties agree that the defendant will be sentenced to 25 years imprisonment, followed by a lifetime term of supervised release.
The investigation is being handled by the FBI and the United States Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Chris Dippel.
Former Political Operative Sentenced to over 11 Years in Prison for Defrauding Louisiana Car DealershipsRead the Press Release
BATON ROUGE, LA – A previously convicted political operative was sentenced yesterday to over 11 years in prison for using his advertising firm to orchestrate a scheme to defraud car dealerships in southeast Louisiana out of over $1,200,000.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Walt Green of the Middle District of Louisiana, and Special Agent in Charge Jerome R. McDuffie of the New Orleans Field Office of IRS-Criminal Investigation (IRS-CI) made the announcement.
Raymond C. Reggie, 52, of Mandeville, Louisiana, pled guilty on October 27, 2014, to all five counts of a 2013 superseding indictment charging him with engaging in a wire fraud scheme to defraud various car dealerships in southeast Louisiana from September 2008 through July 2012. In addition to the prison sentence, U.S. District Court Judge Shelly D. Dick of the Middle District of Louisiana ordered Reggie to serve 2 years of supervised release following imprisonment and to pay more than $4.4 million in restitution and forfeiture, including $968,556 to the Supreme Automotive Group and $249,100 to Super Chevy Dealers of Baton Rouge, a local marketing group. Reggie was immediately remanded into custody following the sentencing.
According to government filings in the case, Reggie owned and operated Nexlevel Group, an advertising firm that assisted car dealerships in obtaining advertising from vendors in Southeast Louisiana. Reggie submitted fictitious advertising expenses for payment to the vendors by the dealerships, falsely representing that such expenses were actually incurred and should be paid to vendors. Once the dealerships issued the checks for the bogus expenses, Reggie deposited the checks into an account he controlled, diverting the funds to his personal use and enjoyment.
Reggie was previously convicted in November 2005 for scheming to defraud three banks in Louisiana in 1999 and 2000. In that case, he pled guilty in the Eastern District of Louisiana and was sentenced to one year in prison, followed by a term of supervised release.
U.S. Attorney Green stated: “The defendant earned every day of the sentence he received yesterday. He stood before the Court as a twice convicted federal felon and seemingly blamed everything and everyone for his wrongdoing, with the glaring exception of himself. Fortunately, justice was guided by the two things the defendant feared most – the law and the facts. I greatly appreciate the tremendous efforts of the prosecutors and agents who handled this important matter, as well as our excellent partnerships with IRS-CI and the Fraud Section.”
Special Agent in Charge of Internal Revenue Service Criminal Investigation, Jerome R. McDuffie, stated: “We are pleased with today’s sentence. Mr. Reggie used his position and reputation in the business community to engage in a sophisticated fraud scheme for personal gain. IRS-CI and the U.S. Attorney’s office remain fully committed to prosecution of those who engage in illegal business practices. Today’s sentence should serve as a reminder that our agency will continue to investigate complex financial crimes and assist in the prosecution of those individuals who engage in such activities.”
This case was investigated by the New Orleans Field Office of IRS-CI. The case is being prosecuted by Assistant United States Attorneys Rene Salomon and Ryan Crosswell of the Middle District of Louisiana and Senior Litigation Counsel Jack Patrick of the Criminal Division’s Fraud Section.
Violent Felon Sentenced to 45 Years in Prison for Drug TraffickingRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Judge Shelly D. Dick sentenced JERMAINE J. CHAPMAN, also known as “Dump Truck,” age 33, of Baton Rouge, Louisiana, to 45 years in prison and ten years of supervised release.
CHAPMAN was sentenced following his conviction by a jury for conspiracy to distribute and to possess with the intent to distribute two hundred eighty grams or more of cocaine base and five or more kilograms of cocaine; possession with the intent to distribute twenty eight grams or more of cocaine base; distribution of five hundred grams or more of cocaine; possession with the intent to distribute cocaine and twenty eight grams or more of cocaine base; possession of firearms in furtherance of a drug trafficking crime; distribution of twenty eight grams or more of cocaine base; possession with the intent to distribute cocaine base; distribution of two hundred eighty grams or more of cocaine base; and possession with the intent to distribute five hundred grams or more of cocaine.
The conspiracy involved multi-kilogram quantities of cocaine being transported from Texas and the use of various residences in Baton Rouge, Louisiana, known as “click” houses, to cook and distribute multi-ounce quantities of “crack” cocaine. The conspirators employed violence and firearms to protect their business.
U.S. Attorney Green stated: “Today’s sentencing should serve as a wakeup call for those violent drug traffickers seeking to do business in this district. Such activity will not be tolerated and severe punishment will follow. This office will continue to work with the DEA, the Baton Rouge Police Department, and our other federal, state, and local partners to ensure that our communities are controlled by their honest, hardworking residents, not drug dealers.”
DEA Assistant Special Agent in Charge Joseph W. Shepherd stated: “The message to drug dealers in the Greater Baton Rouge area is simple – DEA, along with the U.S. Attorney’s Office and our federal, state, and local partners, will use every resource available to make life for you as unpleasant as the poison that you attempt to peddle to our community. This is just the beginning.”
CHAPMAN’s co-defendants, Jeffery D. Perry, age 32 and Charles Boyer, age 51, both of Baton Rouge, Louisiana, were also convicted by a jury. They are detained and await sentencing.
This matter was investigated by the Drug Enforcement Administration (DEA) and the Baton Rouge City Police. This matter was prosecuted by Assistant United States Attorneys Robert W. Piedrahita and J. Christopher Dippel.
Multi-State Drug Trafficking Organization Indicted Again in Operation ArmageddonRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned a superseding indictment against 10 defendants in Operation Armageddon, an extensive investigation aimed at a drug trafficking network based in Baton Rouge, with alleged ties to the Sinaloa Cartel in Mexico.
The superseding indictment sets forth over 50 pages of allegations, charging defendants with allegedly participating in multi-state conspiracies involving the trafficking of high-potency heroin, methamphetamine, cocaine, and marijuana, as well as money laundering, the use of the mail in aid of racketeering, and the possession and use of firearms, including an AR/15 assault weapon, in furtherance of drug trafficking. According to the superseding indictment, two of the defendants allegedly discussed how the potency of the heroin was such that it had to be diluted or else the user would be killed.
The superseding indictment adds multiple charges and a defendant to the original indictment. The following ten (10) defendants are charged in the superseding indictment. If convicted, these defendants face significant terms of imprisonment, fines, and the forfeiture of proceeds from the illegal activity.
- Oscar Machado-Galeana, age 32, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine, and marijuana; conspiracy to launder monetary instruments; distribution of methamphetamine and heroin; possession with intent to distribute methamphetamine; possession of a firearm in furtherance of a drug trafficking crime; unlawful use of the mails in aid of racketeering enterprise; and forfeiture.
- Alexander P. Nava, age 45, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine, and marijuana; conspiracy to launder monetary instruments; distribution of methamphetamine, heroin, and marijuana; possession with intent to distribute methamphetamine; possession of a firearm in furtherance of a drug trafficking crime; unlawful use of the mails in aid of racketeering enterprise; possession of a firearm by person convicted of domestic violence; and forfeiture.
- Lori Lee Landry, age 39, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine and marijuana; and forfeiture.
- Devin Joel Martin, age 25, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine and marijuana; and forfeiture.
- Gregory John Landry, age 39, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine and marijuana; and forfeiture.
- Victor Hugo Quinonez-Sandoval, age 36, of Breaux Bridge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine and marijuana; and forfeiture.
- Roy Martin Herrera Romero, age 38, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine and marijuana; distribution of methamphetamine; possession of a firearm in furtherance of a drug trafficking crime; and forfeiture.
- Mervin Ronald Spencer, age 24, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine and marijuana; and forfeiture.
- Marco Antonio Lopez-Sandoval, age 20, of California, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine and marijuana; conspiracy to launder monetary instruments; unlawful use of the mails in aid of racketeering enterprise; and forfeiture.
- Kyle J. Tidwell, age 38, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine and marijuana; possession with intent to distribute methamphetamine; possession of a firearm in furtherance of a drug trafficking crime; and forfeiture.
U.S. Attorney Green stated: “As our nation continues to examine ways to tackle the many challenges associated with illegal drugs, we will and must remember this hard reality: Drug traffickers often use brutal violence in our communities to enforce their market share and to ensure their collection efforts. Those traffickers will find no safe harbor or relief in this district. They will instead find a united law enforcement community fully prepared to aggressively investigate and prosecute their wrongdoing. ”
DEA Assistant Special Agent in Charge Joseph W. Shepherd stated: “DEA-Baton Rouge will continue to purse aggressive and ambitious enforcement efforts to send a message to drug trafficking organizations that we will not tolerate the collateral damage inflicted on our communities as a result of their illicit drug activities. We will continue to work closely with our federal, state, and local counterparts and community leaders to address this ongoing drug enforcement priority.”
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the East Baton Rouge Parish Sheriff’s Office, the Internal Revenue Service-Criminal Investigations (IRS-CI), the U.S. Department of Homeland Security, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the West Baton Rouge Parish Sheriff’s Office, and the Ascension Parish Sheriff’s Office. This matter is being prosecuted by Assistant United States Attorneys Robert W. Piedrahita and Kevin Sanchez.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
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.
Second Individual Convicted, and Another Charged, in Wide-Ranging Investigation into Multi-Million Dollar Fraud Scheme Involving U.S. Treasury ChecksRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the conviction of a second defendant, and the unsealing of an indictment against a third defendant, in an ongoing investigation into various check cashing businesses in Baton Rouge that cashed nearly $4 million in fraudulently-obtained U.S. Treasury checks during 2012 and 2013.
In one case, ALBELK REYES SERRATA, age 26, of Allentown, Pennsylvania, has pled guilty to conspiracy to steal government funds, in violation of Title 18, United States Code, Section 371. As SERRATA acknowledged in Court in connection with his guilty plea before Chief U.S. District Judge Brian A. Jackson yesterday, he participated in a scheme to fraudulently obtain United States Treasury checks and have them cashed by an associate who operated a money service business on Florida Boulevard in Baton Rouge. From April 2012 through April 2013, SERRATA and his co-conspirators fraudulently obtained and cashed approximately 370 Treasury checks, having a total face value of approximately $2.2 million. After the checks were received and cashed in Baton Rouge, SERRATA’s co-conspirator would retain a percentage of the funds for herself, withdraw the remainder of the funds in cash, and then transmit the funds to SERRATA and others. As a result of his role in the scheme, SERRATA faces significant incarceration, fines, restitution, and supervised release following imprisonment.
In another case, CARLOS L. LINARES, age 55, of Baton Rouge, Louisiana, has been charged by a federal grand jury with failing to maintain an effective anti-money laundering program, in violation of Title 31, United States Code, Sections 5318 and 5322. The Indictment was returned by the grand jury on May 20, 2015 and unsealed in Court yesterday. According to the Indictment, LINARES owned, operated, and managed a separate business, also on Florida Boulevard in Baton Rouge, named Latinos Supermarket, LLC. The Indictment alleges that, from March 2012 through May 2013, LINARES took in and deposited more than 270 Treasury checks, totaling $1.6 million, the vast majority of which were addressed to individuals with out-of-state addresses, and most of which had been obtained through fraud. According to the Indictment, LINARES failed to follow the requirements placed on him as a registered money service business and failed to prevent his store from being used to facilitate criminal activity and launder money. If convicted, LINARES also faces significant incarceration, fines, restitution, and supervised release following imprisonment.
U.S. Attorney Green stated: “My office takes these types of offenses very seriously. These crimes put millions of taxpayer dollars at stake, make it more difficult for taxpayers to properly file their own taxes, and threaten the public’s confidence in the Internal Revenue Service. In the case of Mr. Linares’ alleged failure to maintain an effective anti-money laundering program, his alleged conduct invited criminals to come to Baton Rouge and allowed the criminals to line their pockets with the proceeds of fraudulent activity. My office appreciates IRS-CI’s commitment to working with us to root out this type of criminal activity.”
IRS Criminal Investigation Special Agent-in-Charge Jerome R. McDuffie stated: “IRS Criminal Investigation is proud to utilize our forensic accounting skills in cooperation with the U.S. Attorney’s Office to put a stop to bank fraud. The Indictment against Mr. Linares reflects that we will vigorously pursue those who willfully assist in the negotiation of fraudulently-obtained refund checks and fail to comply with federal reporting requirements. Identity Theft, and the prosecution of all involved parties, remains one of our agency’s top priorities.”
This ongoing investigation is being handled by the Internal Revenue Service—Criminal Investigation Division, with assistance from the Louisiana Office of Financial Institutions. The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Ryan Crosswell.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Zachary Woman Pleads Guilty to Embezzling More Than $80,000 from the Social Security AdministrationRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the conviction of RUBY C. DUNN, age 63, of Baton Rouge, Louisiana, who pled guilty today before U.S. District Judge Shelly D. Dick to theft of government property, in violation of Title 18, United States Code, Section 641, and admitted to forfeiture allegations contained in the Bill of Information.
According to the factual basis presented to the Court in connection with her plea, DUNN began receiving Social Security Administration (SSA) Survivor’s Benefits in or around 1993. However, in 1999, DUNN re-married and became ineligible for such benefits. In order to continue receiving these benefits, DUNN failed to report her marital status and knowingly made misrepresentations to the SSA, on numerous occasions, intending to conceal her marital status. On one occasion, for instance, when asked about her husband, DUNN falsely represented that he was only a “cousin” who happened to live at the same address. On another occasion, DUNN admitted that she had obtained a marriage license but claimed that she and her husband had not gone through with the marriage. As DUNN admitted in Court today, her scheme continued over a fourteen-year period, during which time she fraudulently obtained more than $80,000 in SSA benefits.
U.S. Attorney Green stated: “This kind of criminal conduct is an affront to all those who dutifully pay into the Social Security system and only receive benefits when it is legal and appropriate for them to receive such benefits. We appreciate the SSA-OIG’s efforts to identify this type of fraudulent conduct and bring it to this Office’s attention so that we may take action.”
This investigation is being conducted by the Social Security Administration’s Office of Inspector General. The matter is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
U.S. Attorney Recognizes National Police Week 2015: Honoring and Remembering Our Fallen Law Enforcement OfficersRead the Press Release
Again this year, communities across the United States will come together during National Police Week—May 10-16—to honor and remember those law enforcement officers who made the ultimate sacrifice, as well as the family members, friends, and fellow officers they left behind.
This year, the names of 273 officers killed in the line of duty are being added to the National Law Enforcement Officers Memorial in Washington, DC. These 273 officers include 117 officers who were killed during 2014, plus 156 officers who died in previous years but whose stories of sacrifice had been lost to history until now.
The fallen officers include Deputy U.S. Marshal Josie Wells. DUSM Wells was shot and killed while in Baton Rouge attempting to arrest a fugitive for a double homicide. Just last week, police officers Liquori Tate and Benjamin Deen were killed in the line of duty in nearby Hattiesburg, Mississippi.
All fallen law enforcement officers will be remembered during the following local Police Week services:
- Louisiana State Police Headquarters in Baton Rouge on Thursday, May 14, at 6:00 p.m.;
- Ascension Parish Sheriff’s Office, APSP Training Center on St. Landry Road, on Friday, May 15, at 10:00 a.m.
- Baton Rouge Police Department and East Baton Rouge Sheriff’s Office, Behind Baton Rouge City Hall near Statutes, on Friday, May 15, at 10:00 a.m.
U.S. Attorney Walt Green stated: “This week is a sober reminder of the very real dangers that our brave men and women in law enforcement face every single day. Their dedication to protecting our communities and families despite such dangers is inspiring and humbling. We must never forget their sacrifices and those of their families. I encourage all of us to show our appreciation to those who protect and serve during the events of this week and beyond.”
The names of all 273 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 27th Annual Candlelight Vigil on the evening of May 13, 2015. So that people across the country can experience this unique and powerful ceremony, the vigil will be webcast live over the Internet beginning at 8 pm (EDT) on May 13th. To register for this free online event, visit www.LawMemorial.org/webcast.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2015. The national observance is organized by a group of organizations led by the National Law Enforcement Officers Memorial Fund (NLEOMF), Concerns of Police Survivors, the Fraternal Order of Police and the Fraternal Order of Police Auxiliary.
On May 15th each year, the Fraternal Order of Police and the Fraternal Order of Police Auxiliary host a ceremony on the west steps of the U.S. Capitol to honor fallen law enforcement officers and their families.
In tribute to American law enforcement officers and at the request of the National Law Enforcement Officers Memorial Fund, Public Law 103-322 designates May 15th National Peace Officers Memorial Day, which is one of only two days each year during which government agencies, businesses and residents are to fly their U.S. flags at half-staff.
For more information about National Police Week, please visit www.LawMemorial.org/policeweek.
Company Owner Pleads Guilty to Falsifying Records in A Federal InvestigationRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that LINDA D. WHITE, age 64, of Livingston, Louisiana, pled guilty yesterday before U.S. District Judge Shelly D. Dick to altering and falsifying records in a federal investigation, in violation of Title 18, United States Code, Section 1519. As a result of her conviction, WHITE faces a potential prison term, as well as a significant fine and restitution to her victims.
WHITE operated a company called Linda White & Associates, which, from 2010 until 2013, represented hundreds of agricultural employers seeking to hire temporary foreign workers using H-2A visas. Before hiring foreign workers, United States Department of Labor rules require that the agricultural employers attempt to hire domestic workers by placing newspaper advertisements. As owner and operator of Linda White & Associates, WHITE received fees from her clients to place the ads; in many cases, however, WHITE kept the fees without placing any ads. The advertising fees ranged from $450 to $675 per client.
The U.S. Department of Labor eventually developed concerns regarding WHITE and her business and initiated an audit. In response to the audit, instead of truthfully admitting her scheme, WHITE falsified numerous documents and submitted the false documents to the Department of Labor. These documents included, for instance, false advertisement receipts that represented that WHITE had placed advertisements on behalf of her agricultural clients when, in fact, she had not done so.
U.S. Attorney Green stated: “Defrauding clients and attempting to cover up the fraud during a federal audit is a quick path to becoming a federal felon. We will continue to aggressively pursue those who seek to defraud and obstruct the important oversight missions by the U.S. Department of Labor and other federal agencies.”
This investigation was handled by the U.S. Department of Labor’s Office of Inspector General and the Federal Bureau of Investigation. This matter is being prosecuted by Special Assistant United States Attorney J. Brad Casey.
Another Baton Rouge Businessman Convicted of Motion Picture Tax Credit FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that GEORGE M. KOSTUCH, age 43, has pled guilty to one count of wire fraud in violation of Title 18, United States Code, Section 1343, in connection with a scheme to defraud the State of Louisiana’s Motion Picture Industry Development Tax Credit Program (“Tax Credit Program”). KOSTUCH faces the potential of a significant term of imprisonment, supervised release, and a substantial fine.
As described in the Bill of Information filed this past March, KOSTUCH owned and operated K2 Pictures, LLC, which provided technical services for the production of motion pictures. As KOSTUCH admitted in connection with his guilty plea in Court today, however, between June 1, 2010 and March 24, 2011, KOSTUCH, through his company, issued and delivered checks totaling approximately $539,500 for production expenditures that had not been incurred. These fraudulent checks were later used in support of fraudulent applications for film tax credits, which were submitted to the Louisiana Economic Development Office (“LED”), which issued tax credits totaling $161,850.
U.S. Attorney Walt Green stated, “This is yet another example of our commitment to prosecute abuses of the Tax Credit Program. Particularly in today’s budget climate, fraud and deceit involving the Tax Credit Program – and other fraudulent schemes that allow criminals to enrich themselves at the State’s expense – will be investigated and prosecuted to the fullest extent of the law. We appreciate the work of the FBI and the Louisiana State Inspector General’s Office in this case and the cooperation of the LED.”
Louisiana Inspector General Stephen Street commented: “Louisiana's film tax credit program cannot function as intended when people are constantly defrauding it. We are continuing to do everything we can to make sure there are criminal consequences when that happens, and today's guilty plea is the latest example of that.” Inspector General Street added: “I want to thank our partners at the FBI and United States Attorney for their usual outstanding work.”
This investigation was conducted by the FBI and the Louisiana State Inspector General’s Office and is being prosecuted by Assistant United States Attorneys Frederick A. Menner, Jr. and Paul L. Pugliese.
Convicted Felon Indicted for Gun Crimes and Witness TamperingRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced today that a federal grand jury has returned a Superseding Indictment charging QUENTRELL D. FOUNTAIN, age 27, of Baton Rouge, Louisiana, with possessing a firearm while a convicted felon, tampering with a witness and victim, retaliating against a witness and victim, and discharging a firearm during the commission of crimes of violence. If convicted, the defendant faces a significant term of imprisonment, fines, restitution and the forfeiture of all property involved or used in the commission of the crimes.
The Superseding Indictment alleges that on January 8, 2014 FOUNTAIN beat and threatened his victim with a firearm, stating: “If I wanted to kill you, I could kill you.” According to the Indictment, after law enforcement learned of the incident, FOUNTAIN threatened the victim stating: “I am going to show you for calling the police.” Later that night, FOUNTAIN allegedly fired multiple gunshots in the vicinity of the victim’s residence, while the victim and her child were inside. Later, on March 2, 2014, FOUNTAIN allegedly fired a gun at a vehicle carrying the victim and two other individuals. According to the Indictment, on June 17, 2014 FOUNTAIN was discovered by the U.S. Marshal’s Fugitive Task Force in possession of a firearm.
U.S. Attorney Green stated: “Stopping gun violence and witness tampering are high priorities for this office. Those seeking to undermine the integrity of the criminal justice system by tampering with victims and witnesses will face severe consequences in federal court, particularly when a firearm is involved.”
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 Attorney 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.
Former State Official Convicted of Bribery Scheme Involving Louisiana State Board of CosmetologyRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the conviction of a former official of the Louisiana State Board of Cosmetology who engaged in a bribery scheme to sell answers to upcoming Board-administered cosmetology examinations for cash.
WINN E. JOHNSON, age 71, of Boyce, Louisiana, has been charged in a Bill of Information with two counts of using the telephone in aid of bribery, in violation of Title 18, United States Code, Section 1952. This morning, JOHNSON appeared before Chief U.S. District Judge Brian A. Jackson and pled guilty.
As described in Court earlier today, the Federal Bureau of Investigation and the Louisiana Office of the State Inspector General opened an investigation involving JOHNSON and others in 2013, based in part on allegations that JOHNSON would accept cash from individuals who were scheduled to take Board examinations. JOHNSON acknowledged in Court today that on three different occasions, he met with an individual whose wife, JOHNSON believed, was seeking to obtain a cosmetology license. Each time, JOHNSON provided the individual with answers to an upcoming Board examination, in exchange for $500 in cash. JOHNSON used his cellular telephone to arrange the meetings, which took place on various dates in 2014 in Baton Rouge, Louisiana.
Louisiana Inspector General Stephen Street commented: “We have zero tolerance for those who compromise the integrity of government in exchange for monetary gain. It undermines the entire system and is an enormous disservice to the taxpayers. We will continue working with the FBI and United States Attorney to make sure that anyone who does this faces criminal consequences.”
U.S. Attorney Green stated: “This case is a reminder that corruption comes in a wide variety of forms. Individuals at all levels of our government can misuse their positions of trust to line their pockets, and it is never acceptable. Working with our partners at the Federal Bureau of Investigation and the Louisiana Inspector General’s Office, among other agencies, we will puruse these types of allegations whenever they come to our attention. I commend the State Board’s leadership on its assistance and cooperation in helping us root out this corrupt actor.”
This ongoing investigation is being handled jointly by the Federal Bureau of Investigation and the Louisiana Office of State Inspector General, with valuable assistance from the Louisiana State Board of Cosmetology. U.S. Attorney Green emphasized that the State Board’s leadership has consistently cooperated with the investigation. The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division.
Indictment and Historic Drug Seizure in Operation ArmageddonRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of a federal grand jury indictment and a historic drug seizure in connection with Operation Armageddon, an extensive investigation aimed at a drug trafficking network operating in Louisiana and California.
As part of the operation, agents executed federal search warrants which resulted in the seizure of over nine (9) kilograms of high-grade methamphetamine with a potential retail value of over a million dollars, eight (8) pounds of marijuana, and numerous weapons, including an AR/15 assault rifle. The methamphetamine seizure is the largest in the history of the East Baton Rouge Parish Sheriff’s Office, which was one of the participating agencies.
The operation has also resulted in a federal grand jury indictment against the nine (9) individuals listed below. The indictment charges significant drug trafficking, money laundering, and firearms offenses. If convicted, these defendants face significant terms of imprisonment, fines, and the forfeiture of proceeds from the illegal activity.
- Oscar Machado-Galeana, age 32, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin and marijuana; conspiracy to launder monetary instruments; distribution of five grams or more of methamphetamine; four counts of distribution of fifty grams or more of methamphetamine; distribution of heroin; distribution of marijuana; possession of a firearm in furtherance of a drug trafficking crime; and forfeiture.
- Alexander P. Nava, age 45, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin and marijuana; conspiracy to launder monetary instruments; distribution of five grams or more of methamphetamine; four counts of distribution of fifty grams or more of methamphetamine; distribution of heroin; distribution of marijuana; possession of a firearm in furtherance of a drug trafficking crime; and forfeiture.
- Lori Lee Landry, age 39, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin and marijuana; and forfeiture
- Devin Joel Martin, age 25, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin and marijuana; and forfeiture.
- Gregory John Landry, age 39, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin and marijuana; and forfeiture
- Victor Hugo Sandoval-Quinonez, age 36, of Breaux Bridge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin and marijuana; and forfeiture.
- Roy Martin Herrera Romero, age 38, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin and marijuana; distribution of marijuana; and forfeiture.
- Mervin Ronald Spencer, age 24, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin and marijuana; and forfeiture.
- Marco Antonio Lopez-Sandoval, age 20, of California, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin and marijuana; conspiracy to launder monetary instruments; and forfeiture.
U.S. Attorney Green stated: “We will continue to meet the threat posed by drug trafficking organizations by working tirelessly with our excellent federal, state, and local partners to aggressively pursue drug dealers. I greatly appreciate the great work of the agents and prosecutors in this important investigation.”
Joseph Shepard, the Assistant Special Agent-in-Charge of the New Orleans Division of the U.S. Drug Enforcement Administration, stated: “Throughout this investigation, DEA and our other federal, state and local counterparts have demonstrated remarkable resilience and cooperation in combating those seeking to flood the streets of the Baton Rouge area with dangerous drugs. Dangerous drug distribution networks are formidable foes that must be defeated on every front. The men and women of DEA will continue to do our part to take the fight to these drug trafficking organizations.”
East Baton Rouge Parish Sheriff Sid Gautreaux, stated: “We are proud to be part of the combined efforts of all of the participating agencies in the Task Force, and I would like to personally congratulate them on their efforts in this outstanding case. I am extremely proud of my deputies and the contributions that they were able to make on a case of such magnitude. As Sheriff of East Baton Rouge Parish, I pledge to continue to work with our federal, state and local partners to combat illegal narcotics and make our community a safer place to live. This case is a prime example of the results that can be achieved when we have the level of cooperation exhibited by this Task Force. I would like to thank the DEA for facilitating the Task Force and the U.S. Attorney’s Office for the Middle District of Louisiana for their unwavering support of not only this office, but for all law enforcement agencies in our region.”
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the East Baton Rouge Parish Sheriff’s Office, the Internal Revenue Service-Criminal Investigations (IRS-CI), the U.S. Department of Homeland Security, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the West Baton Rouge Parish Sheriff’s Office, and the Ascension Parish Sheriff’s Office. This matter is being prosecuted by Assistant United States Attorneys Robert W. Piedrahita and Kevin Sanchez.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
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.
Grand Jury Indicts Woman for Tax and Identity Theft SchemeRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced the filing of criminal charges against another individual accused of committing theft of government property and aggravated identity theft in the Baton Rouge area, as part of an ongoing effort by the United States Attorney’s Office, the Internal Revenue Service’s Criminal Investigations Division, and the United States Department of Justice’s Tax Division to combat stolen identity refund fraud and other tax fraud schemes.
LAGUARDIA COSTON, age 27, of Baton Rouge, Louisiana, was charged in an indictment with four counts of theft of government property; four counts of receiving stolen government property; and two counts of aggravated identity theft. If convicted, the defendant faces a significant term of imprisonment, fines, restitution, and the forfeiture of the proceeds from the alleged scheme.
The indictment alleges that COSTON obtained numerous federal tax refunds, via checks deposited with and electronic wire transfers to bank accounts she controlled, knowing that the refunds belonged to other taxpayers and that she was not entitled to the funds. According to the indictment, COSTON also knowingly possessed and used the taxpayers’ names and social security numbers.
U.S. Attorney Green stated: “This indictment reflects our continuing commitment to stop identity theft and tax fraud schemes. We are dedicated to aggressively pursuing such criminality wherever it is found. I commend the hard work of the IRS-CI and the prosecutors working on these important matters.”
“We will continue to work aggressively with the United States Attorney's Office to protect innocent taxpayers and preserve the integrity of our tax system.” said Jerome R. McDuffie, Acting Special Agent in Charge, IRS Criminal Investigation. “We will vigorously pursue fraudulent refund claims and those individuals who engage in identity theft. Protecting taxpayer’s money and personal information will remain one of our core missions.”
This matter is being handled by the IRS Criminal Investigation. It is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Leader of Sex Trafficking Ring Pleads GuiltyRead the Press Release
WASHINGTON – The leader of a sex trafficking ring pled guilty today to charges stemming from his interstate prostitution enterprise, 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 Michael J. Anderson of the FBI’s New Orleans Division.
Jeremie J. Tate, 33, of Zachary, Louisiana, pled guilty before U.S. District Judge Shelly D. Dick of the Middle District of Louisiana to conspiracy to unlawfully use interstate facilities in aid of racketeering, two counts of use of interstate facilities in aid of racketeering, and enticing another to travel interstate for prostitution. After evading arrest for several days, Tate was apprehended in Houston, Texas, on April 25, 2014, by the U.S. Marshals Service Fugitive Task Force and the FBI’s New Orleans Division. Tate has remained in federal custody since his arrest.
According to the plea agreement filed in the case, from November 2012 through November 2013, Tate operated a prostitution business based in Baton Rouge involving multiple prostitutes, including a minor. Tate and others, used telephones and the Internet to arrange online advertising, schedule prostitution sessions, and recruit other prostitutes. Tate admitted that he took most of the proceeds from the prostitution business and distributed controlled substances to his prostitutes and others to manipulate and intimidate them. In his plea agreement, Tate specifically admitted that he enticed a prostitute to travel from Baton Rouge to Las Vegas in December 2012 to engage in prostitution for him.
Three other individuals have already pled guilty and are awaiting sentencing for their roles in this sex trafficking ring.
United States Attorney Walt Green stated: “Persons preying on vulnerable victims for their own selfish gain is a truly despicable act. We will continue to prioritize these types of cases to prevent others from committing similar crimes and to rescue the victims.”
The case is being investigated by the FBI’s New Orleans Division, Louisiana Attorney General’s Office, Louisiana State Police, and East Baton Rouge Parish Sheriff’s Office, with assistance from the Baton Rouge, Louisiana, Police Department’s Narcotics Division, U.S. Marshals Service Fugitive Task Force and other law enforcement agencies. The case is being prosecuted by Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Jamie A. Flowers Jr. of the Middle District of Louisiana.
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 the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Baton Rouge Attorney Sentenced to 10 Years in Federal Prison for Receiving Child PornographyRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Judge Shelly D. Dick has sentenced W. STEVEN MANNEAR, age 62, of Baton Rouge, Louisiana, to one hundred twenty (120) months in federal prison as a result of his receipt of child pornography over a three (3) year period. MANNEAR was also sentenced to pay restitution in the amount of $2,000 to one of his victims, to pay a fine of $20,000, and to serve a five (5) year term of supervised release following imprisonment.
On August 7, 2014, MANNEAR pled guilty to receiving child pornography via the Internet from at least August 2009 through September 2012, in violation of Title 18, United States Code, Section 2252(a)(2).
MANNEAR’S online criminal activities were initially uncovered by a Special Agent with the Naval Criminal Investigative Service. On March 26, 2013, the Federal Bureau of Investigation and East Baton Rouge Parish Sheriff’s Office executed simultaneous federal search warrants on MANNEAR’S house, law firm, and car. Pursuant to the search warrants, law enforcement agents seized, among other things, two computers that belonged to MANNEAR and which contained a large amount of child pornography.
United States Attorney Green stated: “Today’s sentence should serve as a reminder that child pornographers, regardless of their occupation or station in life, will face significant punishment in federal court. Attorneys, like anyone else, must comply with the law and will be held accountable for criminal activity, whether it be child pornography or any other federal criminal offense. It is unfortunate that the actions of criminals like this defendant cause the honest endeavors of the vast majority in the legal profession to be overshadowed.”
“Today's sentencing is a result of months of collaborative efforts among law enforcement agencies,” EBR Sheriff Sid Gautreaux said. “Such crimes will not be tolerated, and we will continue to be vigilant in working together to identify those responsible and bring them to justice.”
This matter was handled by the United States Attorney’s Office for the Middle District of Louisiana, the Federal Bureau of Investigation, the East Baton Rouge Parish Sheriff’s Office, and the Naval Criminal Investigative Service. It was prosecuted by Assistant United States Attorney Chris Dippel, with assistance from Assistant United States Attorney Rene Salomon.
Three Indicted for Identity Theft and Tax Schemes Involving Nearly 300 VictimsRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced the filing of criminal charges against three (3) individuals accused of committing theft of government property, access device fraud, aggravated identity theft, and related crimes in the Baton Rouge area. Collectively, these three individuals are alleged to have misused the names and social security numbers of nearly 300 different taxpayers and of fraudulently obtaining numerous federal income tax refunds. The charges are the result of an initiative by the United States Attorney’s Office, the Internal Revenue Service’s Criminal Investigations Division, and the United States Department of Justice’s Tax Division to combat stolen identity refund fraud and other tax fraud schemes.
The following individuals have been charged:
JASON DEANDRE DAVIS, age 30, of Baton Rouge, Louisiana, was charged in an indictment with five counts of theft of government property, in violation of Title 18, United States Code, Sections 641 and 2, five counts of receipt of stolen government property, also in violation of Title 18, United States Code, Sections 641 and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. The indictment alleges that DAVIS obtained numerous federal tax refunds, either via electronic deposits to bank accounts DAVIS controlled or debit cards that had been pre-loaded with the refunds, knowing that the refunds belonged to other taxpayers and that he was not entitled to the funds. According to the indictment, during and in relation to his fraudulent receipt of one of the refunds, DAVIS also knowingly possessed and used one of the taxpayer’s names and social security numbers. The case is being prosecuted by Assistant United States Attorney René I. Salomon.
TASHA THOMAS, age 26, of Donaldsonville, Louisiana, was charged in an indictment with access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. The indictment alleges that from January 2012 through August 2012, THOMAS used and trafficked in the social security numbers assigned to more than two hundred and fifty (250) different taxpayers. Then, in August 2013, the indictment alleges that THOMAS trafficked more than twenty (20) additional social security numbers assigned to other individuals. The case is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Finally, SHONDA V. JOHNSON, age 42, of Baton Rouge, Louisiana, was charged in an indictment with three counts of receipt of stolen government property, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. The indictment alleges that JOHNSON obtained several federal tax refunds via paper checks and electronic deposits to a bank account that JOHNSON controlled, knowing that the refunds belonged to other taxpayers and that she was not entitled to the funds. According to the indictment, during and in relation to her fraudulent receipt of one of the refunds, JOHNSON also knowingly possessed and used one of the taxpayer’s names and social security numbers. The case is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
If convicted of the charges returned by the federal grand jury today, each defendant faces a significant term of imprisonment, fines, restitution, and the forfeiture of the proceeds from these alleged schemes. All three investigations are ongoing.
U.S. Attorney Green stated: “This office will continue to aggressively pursue criminals who commit identity theft and use those stolen identities to defraud the United States and line their own pockets. The filing of these three new cases is another significant step in that important effort. Working with our federal, state, and local partners, our investigations of this type of crime in our district will continue.”
“Protecting taxpayer money and trust is an integral part of this agency's mission. We will vigorously pursue fraudulent refund claims and those individuals who engage in identity theft,” stated Jerome R. McDuffie, Special Agent-in-Charge, IRS Criminal Investigation. “We will continue to work aggressively with the United States Attorney's Office to protect innocent taxpayers and preserve the integrity of our tax system. The message to be taken from today’s indictments in Baton Rouge is simple. Participation in refund fraud schemes does not pay and those who do will be prosecuted and be held accountable for their illegal activities.”
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Grand Jury Indicts Four Individuals on Federal Child Pornography ChargesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that combined federal, state, and local efforts to combat child pornographers has resulted in a federal grand jury returning indictments in four different matters involving federal child pornography offenses. If convicted, each defendant could face significant incarceration, fines, restitution, forfeiture, and supervised release following imprisonment.
The following individuals have been indicted:
PIERRE A. MOOSEBROKER, JR., age 46, of Baton Rouge, Louisiana, is charged with possession of child pornography and forfeiture.
EVERETT EUGENE CARTER, age 56, of Gonzales, Louisiana is charged with transportation of child pornography, possession of child pornography, and forfeiture.
BRANDON L. HUNT, age 26, of Denham Springs, Louisiana is charged with distribution of child pornography, possession of child pornography, and forfeiture.
BRIAN SCHALLER, age 42, of Denham Springs, Louisiana is charged with distribution of child pornography, possession of child pornography, and forfeiture.
U.S. Attorney Green stated: “Today’s indictments reflect the continuing commitment by this office, together with our federal, state, and local partners, to aggressively pursue those who contribute to the sexual exploitation of our children. I commend the excellent work of the federal, state, and local agencies who worked closely together on these important cases.”
“Those who prey on our most vulnerable citizens must recognize that it is our priority to stop them and to eliminate this scourge on our society,” Attorney General Buddy Caldwell said. “Through the collaborative efforts of state, federal and local law enforcement agencies, we are working to bring child predators to justice and make Louisiana safer.”
These matters were investigated by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), the Federal Bureau of Investigation (FBI), the Cyber Crime Unit and the Criminal Division of the Louisiana Attorney General’s Office, the Baton Rouge Police Department, with assistance from the East Baton Rouge Parish District Attorney’s Office, the Ascension Parish District Attorney’s Office, and the Livingston Parish District Attorney’s Office. These cases are being prosecuted by Assistant United States Attorneys Cam Le and Chris Dippel.
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.
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.
Port Allen Man Convicted and Sentenced for Transporting Unlawfully Taken WildlifeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that ANDRE A. CHUSTZ JR., age 50, of Port Allen, Louisiana pled guilty and was sentenced for his violation of the Federal wildlife laws.
CHUSTZ was charged in a Bill of Information, filed on January 23, 2015, charging him with transporting unlawfully-taken wildlife, in violation of Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(d)(2). At his guilty plea this morning, CHUSTZ admitted that in November 2013, he engaged in the unlawful hunting of deer in Breckenridge County, Kentucky without having first obtained the required non-resident hunting licence and permit. CHUSTZ admitted he killed a 12- point whitetail buck (pictured below) and then caused another person, a Kentucky resident, to falsely report that the buck had been legally harvested. CHUSTZ then knowingly transported the cape, antlers, and meat from Kentucky to Louisiana and had the shoulder mount prepared by a local taxidermist.
At today’s sentencing, United States Magistrate Judge Stephen C. Riedlinger sentenced CHUSTZ to a 1-year term of probation, during which time CHUSTZ is barred from any and all deer hunting. CHUSTZ was also ordered to pay a $500 fine, to make restitution in the amount of $190 to the Commonwealth of Kentucky, and to forfeit the shoulder mount of the buck.
U.S. Attorney Green stated: “Wildlife laws are designed to protect our natural resources and to ensure that, through mandatory license and permit fees, States are able to offer quality hunting experiences to all citizens. Today’s guilty plea and sentence reflect the seriousness of the defendant’s conduct and should act as a deterrent to others who might consider traveling from Louisiana to hunt in other States, without purchasing the required non-resident licences and permits.”
This investigation was handled by the U.S. Attorney’s Office and the United States Fish and Wildlife Service. This matter is being prosecuted by Assistant United States Attorney Lyman E. Thornton III and investigated by USFWS Special Agent Ben Bryant.
Businessman Charged in Motion Picture Tax Credit ScamRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that GEORGE M. KOSTUCH, age 43, of Baton Rouge, Louisiana, has been charged in a Bill of Information with engaging in a wire fraud scheme to defraud the State of Louisiana’s Motion Picture Industry Development Tax Credit Program, in violation of Title 18, United States Code, Section 1343. If convicted, KOSTUCH faces a significant term of imprisonment, a term of supervised release following imprisonment, a fine, and forfeiture of the proceeds from his offense.
The Bill of Information alleges that KOSTUCH owned and operated K 2 Pictures, LLC, which provided technical services for the production of motion pictures. KOSTUCH allegedly caused the issuance and delivery of checks totaling approximately $539,500 for production expenditures that were, in fact, not incurred. According to the Bill of Information, these checks were later used as false documentation for motion picture productions and submitted to the Louisiana Economic Development Office (“LED”).
The Bill of Information alleges further that, between June 1, 2010 and March 24, 2011, the cancelled checks were used in the application and receipt of film tax credits from the LED. The tax credits issued by LED based upon the false expenditures allegedly totaled $161,850.
The LED is a state entity whose mission is to lead economic development for the State of Louisiana. LED operates the Tax Credit Program which is designed to entice production companies to shoot films and video productions in Louisiana. The Tax Credit Program provides a 30% tax credit on qualified expenditures for the production of films in Louisiana. Once issued by LED, the tax credits are fully transferable.
U.S. Attorney Green stated: “This most recent case illustrates our continued commitment to prosecute all abuses of the Tax Credit Program. As I have stated in the past, those who misuse this program, through fraud and deceit, undermine the purpose of the Tax Credit Program and will be investigated and prosecuted to the fullest extent of the law. We appreciate the work of the FBI and the Louisiana Inspector General’s Office in this case, as well as the cooperation of the LED.”
This investigation was conducted by the FBI and the Louisiana Inspector General’s Office and is being prosecuted by Assistant United States Attorneys Frederick A. Menner, Jr. and Paul L. Pugliese.
NOTE: A Bill of Information is an accusation by the United States. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Drug Dealer Found Guilty at TrialRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that a federal jury unanimously convicted KENDRICK D. ALEXANDER, age 41, of Baton Rouge, Louisiana, today following a four-day jury trial before U.S. District Judge John W. deGravelles based on an Indictment charging him with 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). ALEXANDER faces a significant term of imprisonment, followed by supervised release, along with a fine and forfeiture of assets. A sentencing date has not yet been set.
The evidence at trial demonstrated that ALEXANDER engaged in illegal drug dealing involving oxycodone, which is a controlled pain medication that has increasingly become a drug of choice for illegal users and dealers. Oxycodone may only be dispensed and used legally when prescribed by a DEA-registered medical doctor for medical necessity reasons. This is because oxycodone is potentially very addictive and has resulted in significant abuse by some users, risking serious injury and death.
U.S. Attorney Green stated: “Drug traffickers will continue to face the multi-pronged attack being waged by my office and all of law enforcement in this district. Today’s verdict is another successful result of that ongoing effort. I greatly appreciate the hard work of the DEA, the Baton Rouge Police Department, and my staff in bringing the defendant to justice.”
Joseph W. Shepherd, Assistant Special Agent-in-Charge of the U.S. Drug Enforcement Administration’s New Orleans Field Office, stated: “Kendrick Alexander is yet another drug dealer who learned today the strength, partnership, and solidarity of the federal, state, and local law enforcement community. The message is simple: the Drug Enforcement Administration and the U.S. Attorney’s Office will stop at nothing to ensure that drug trafficking ventures perpetrated by the likes of Mr. Alexander will not be tolerated.”
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.
Licensed Clinical Social Worker Sentenced to Prison for Health Care FraudRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that CARLA CLARK, age 50, of Pineville, Louisiana, was sentenced yesterday by Chief U.S. District Judge Brian A. Jackson to 21 months imprisonment, 2 years of supervised release following imprisonment, and ordered to pay $413,109 in restitution for her role in a health care fraud scheme involving two Louisiana companies.
The sentencing stems from a health care fraud scheme involving two companies known as Fusion Services, L.L.C. (“Fusion”), and Grace Social Services, L.L.C. (“Grace”), which operated in Alexandria, Louisiana and the surrounding areas. CLARK was a Licensed Clinical Social Worker who worked with Sonya Williams, the owner of Fusion and Grace. CLARK participated in creating false and misleading medical records for Fusion indicating that Medicare beneficiaries had received individual, face-to-face psychotherapy when, in fact, no such services had been provided. Williams then prepared false claims for the purported psychotherapy services to elderly patients and submitted them to Medicare for reimbursement. Medicare paid Fusion and Grace approximately $349,715 as a result of the billings, much of the profits were deposited into Williams’ personal accounts.
In addition to the term of imprisonment, Judge Jackson ordered CLARK to pay restitution in the amount of $413,109 to the Department of Health and Human Services/Centers for Medicare and Medicaid Services for her role in the fraudulent conduct involving Fusion and Grace, as well as other health care entities.
U.S. Attorney Green stated, “This sentencing is part of the continuing effort by my office and our federal, state, and local partners to combat the scourge of health care fraud. Corrupt medical professionals, like the defendant in this case, do an incredible disservice to the vast majority of medical professionals who are honest and committed to quality patient care. Together with the help and cooperation of those honest professionals, we will continue our pursuit of fraudsters in the medical community.”
“Any time false claims are submitted for payment, the nation's health insurance programs suffer,” said Special Agent-in-Charge Mike Fields of the HHS Office of the Inspector General’s (OIG) Dallas Regional Office. “Our HHS OIG investigators will continue to work closely with our law enforcement partners to identify providers who deliberately manipulate the system to obtain crucial Medicare or Medicaid dollars.”
The investigation was conducted by the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) and the Federal Bureau of Investigation (FBI), with the assistance of AdvanceMed, the Medicare Program Safeguard Contractor which assists with health care fraud investigations. The case was prosecuted by Assistant United States Attorney Catherine M. Maraist.
Violent Felon Charged with Murder of a Deputy U.s. MarshalRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that JAMIE D. CROOM, age 31, has been charged in a federal criminal complaint with the murder of Deputy United States Marshal Josie Wells while Deputy Wells was engaged in the performance of his official duties, in violation of Title 18, United States Code, Sections 1111 and 1114.
Drew J. Wade, Chief of Public Affairs for the U.S. Marshals Service, released the following statement concerning the incident giving rise to the federal complaint: “At approximately 11:00 a.m. today, Deputy Marshal Wells died in the line of duty. Deputy Marshal Wells was part of a team executing a warrant on a fugitive wanted for double homicide. The team engaged gunfire and Wells was shot. He was immediately transported to an area hospital, where he died. The fugitive was also shot and transported to a hospital. The shooting investigation is being led by the Federal Bureau of Investigation and the Baton Rouge Police Department. No other law enforcement personnel were injured during this incident.”
This matter is being investigated by the FBI and the Baton Rouge Police Department, with the assistance of the East Baton Rouge Sheriff’s Office, the Louisiana State Police, the Bureau of Alcohol Tobacco Firearms and Explosives (ATF), the Pointe Coupee Sheriff’s Office and the District Attorney’s Offices for the Nineteenth and Eighteenth Judicial Districts.
This matter is being prosecuted by Assistant United States Attorneys M. Patricia Jones, who serves as Senior Litigation Counsel, and Robert W. Piedrahita, who serves as Litigation Counsel.
NOTE: A federal complaint is an accusation by the United States. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Third Louisiana Resident Indicted for Insider Trading in Connection with the Acquisition of the Shaw GroupRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green of the Middle District of Louisiana and Stephanie Finley of the Western District of Louisiana jointly announced that another individual has been charged with insider trading in connection with the acquisition of the Shaw Group. A federal grand jury sitting in the Western District of Louisiana has indicted BILLY J. ADCOX, JR, age 44, of Ruston, Louisiana, with conspiracy to commit securities fraud (insider trading), in violation of Title 18, United States Code, Section 371, and securities fraud (insider trading), in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-1. If convicted, ADCOX faces significant incarceration, fines, restitution, and supervised release following imprisonment.
The Indictment alleges that from in or before July 2012, and continuing to at least December 2012, ADCOX, his close friend Jesse Roberts, along with John Doe, engaged in a scheme to profit from inside information about the upcoming merger between The Shaw Group (“Shaw”) and Chicago Bridge and Iron Company (“CB&I”).
According to the allegations contained in the Indictment, which was returned by the grand jury yesterday, in mid-2012, Shaw was considering a potential merger opportunity. At the time, Zeringue was the Vice President of Construction Operations for Shaw’s Plant Services Division. In late July 2012, Shaw and CB&I came to an agreement whereby CB&I acquired all outstanding shares of Shaw stock. The merger between the two companies was publicly announced on July 30, 2012 (“the public announcement”). As a result of the public announcement, Shaw’s stock price rose substantially.
The Indictment alleges that, prior to the public announcement and through his job at Shaw, Zeringue obtained inside information about the upcoming merger between Shaw and CB&I and passed the inside information to Roberts. The Indictment further alleges that Roberts subsequently passed the inside information to ADCOX, who, in turn, passed the inside information to John Doe and facilitated contact between Roberts and John Doe. Thereafter, ADCOX and John Doe allegedly purchased Shaw securities before the public announcement and sold their Shaw securities after the public announcement had caused Shaw’s stock price to rise, all at the expense of Shaw shareholders and potential Shaw shareholders who were not privy to the inside information. The Indictment also alleges that ADCOX made over $37,000 in proceeds from his illegal insider trading activities.
Prior to the Indictment announced today, Zeringue was charged in the Middle District of Louisiana with conspiracy to commit securities fraud. On June 27, 2014, Zeringue pled guilty as charged pursuant to a plea agreement with the United States.
Roberts, age 43, of Ruston, Louisiana, has also been charged with insider trading as part of the investigation. On Thursday, February 19, 2015, a federal grand jury sitting in the Middle District of Louisiana indicted Roberts, charging him with conspiracy to commit securities fraud (insider trading), in violation of Title 18, United States Code, Section 371, and securities fraud (insider trading), in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-1.
In announcing the Indictment, U.S. Attorneys Green and Finley praised the investigative work of the U.S. Secret Service, the Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigation, and thanked the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority for their assistance.
This matter is being handled by the U.S. Attorney’s Offices for the Middle and Western Districts of Louisiana and the Baton Rouge offices of the FBI, Secret Service, and IRS-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Chris Dippel and Patricia Jones of the Middle District of Louisiana and Assistant United States Attorney Seth Reeg of the Western District of Louisiana.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Louisiana Resident Indicted for Insider Trading in Connection with the Acquisition of the Shaw GroupRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that another individual has been charged with insider trading in connection with the acquisition of the Shaw Group. A federal grand jury sitting in the Middle District of Louisiana has indicted DR. JESSE H. ROBERTS, III, age 43, of Ruston, Louisiana, with conspiracy to commit securities fraud (insider trading), in violation of Title 18, United States Code, Section 371, and securities fraud (insider trading), in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-1. If convicted, ROBERTS faces significant incarceration, fines, restitution, and supervised release following imprisonment.
The Indictment alleges that from on or before July 2012, and continuing to at least November 2013, ROBERTS and his brother-in-law, Scott Zeringue, a former executive with The Shaw Group (“Shaw”), engaged in a scheme to profit from inside information about the upcoming merger between Shaw and Chicago Bridge and Iron Company (“CB&I”).
According to the allegations contained in the Indictment, in mid-2012, Shaw was considering a potential merger opportunity. At the time, Zeringue was the Vice President of Construction Operations for Shaw’s Plant Services Division. In late July 2012, Shaw and CB&I came to an agreement whereby CB&I acquired all outstanding shares of Shaw stock. The merger between the two companies was publicly announced on July 30, 2012 (“the public announcement”). As a result of the public announcement, Shaw’s stock price rose substantially.
The indictment alleges that, prior to the public announcement and through his job at Shaw, Zeringue obtained inside information about the upcoming merger between Shaw and CB&I and passed the inside information to ROBERTS. Thereafter, ROBERTS and Zeringue allegedly purchased Shaw securities before the public announcement and sold their Shaw securities after the public announcement had caused Shaw’s stock price to rise, all at the expense of Shaw shareholders and potential Shaw shareholders who were not privy to the inside information. The Indictment also alleges that ROBERTS made over $650,000 in proceeds from his illegal insider trading activities.
Prior to the Indictment announced today, Zeringue was charged in the Middle District of Louisiana with conspiracy to commit securities fraud. On June 27, 2014, Zeringue pled guilty as charged pursuant to a plea agreement with the United States.
Other federal prosecutions have resulted from insider trading related to the acquisition of the Shaw Group. In separate proceedings being handled by the U.S. Attorney’s Office for the Western District of North Carolina, a former Wells Fargo investment banker and seven of his conspirators have been convicted on insider trading charges related, in part, to the Shaw sale, with sentences up to 10 years in prison.
In announcing today’s Indictment, U.S. Attorney Walt Green praised the investigative work of the U.S. Secret Service, the Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigation, and thanked the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the U.S. Attorney’s Offices for the Western District of North Carolina and the Western District of Louisiana for their assistance.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Baton Rouge offices of the FBI, Secret Service, and IRS-Criminal Investigation. It is being prosecuted by Assistant United States Attorney Chris Dippel and Senior Litigation Counsel Patricia Jones.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Annual African American Heritage Celebration at the Baton Rouge Federal CourthouseRead the Press Release
BATON ROUGE, LA – Chief Judge Brian A. Jackson, Judge Shelly D. Dick, Judge John W. deGravelles, and Judge James J. Brady of the United States District Court for the Middle District of Louisiana and the agencies of the federal courthouse will host the Twentieth Annual Federal Courthouse African-American History Month Program. The program will be held at 10:00 a.m. on Thursday, February 26, 2015, in Courtroom 1, on the third floor of the federal courthouse.
The featured guest speaker will be the Honorable Chief Justice Bernette Joshua Johnson of the Louisiana Supreme Court. Chief Justice Johnson grew up in New Orleans, Louisiana and was elected Associate Justice of the Louisiana Supreme Court in 1994. She was re-elected, without opposition, in 2000 and 2010.
Musical entertainment will be provided by Mr. Everrett Parker and the Greater Mount Carmel Male Quartet.
Members of the public and the press are invited to attend. For further information, please contact Michael J. Jefferson, Assistant United States Attorney, at (225) 389-0443.
Hedge Fund Manager Sentenced to Prison for $7.9 Million Investment Fraud SchemeRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that JAMES R. HOLDMAN, age 59, of Zachary, Louisiana, was sentenced yesterday before U.S. District Judge James J. Brady to sixty (60) months imprisonment as a result of a mail fraud scheme in which he defrauded investors out of millions of dollars. HOLDMAN was also sentenced to serve two years of supervised release following his release from imprisonment and ordered to pay the victims of his scheme $7,910,074 in restitution.
HOLDMAN operated a hedge fund called Greenwing Capital Management, LLC (“Greenwing”). As the owner and operator of the fund, HOLDMAN solicited and received millions of dollars in investment funds from the victim investors, many of whom were retirees, including former military veterans and survivors of Hurricane Katrina. The victim investors hailed primarily from South Louisiana and Mississippi. Throughout 2008, HOLDMAN’s investments suffered substantial losses. However, HOLDMAN concealed his failed investments by falsely representing to the victim investors that their accounts were earning positive rates of return when, in fact, HOLDMAN had lost nearly all of their funds.
By making these false representations, HOLDMAN was able to defraud the victim investors into keeping their remaining money with Greenwing and, in some cases, investing more money, thereby allowing HOLDMAN to continue receiving money in the form of fees for his own personal use and benefit. In order to continue to conceal his fraud, HOLDMAN continued to put the victim investors’ money at risk in an attempt to recoup his losses.
Ultimately, in October 2008, HOLDMAN sent out a form letter to victim investors falsely informing them that a sharp downturn in the stock market related to the financial crisis had caused a 98.67% loss in their investment in a one-month period and had forced him to close the fund. In fact, HOLDMAN had steadily been losing the victims’ money throughout 2008.
U.S. Attorney Green stated: “Investment fraud is a devastating crime that goes on far too often. We will continue to pursue such matters aggressively, particularly when the victims include some of our community’s most vulnerable. My appreciation goes to our federal and state law enforcement partners, both here in Louisiana and in Texas and Mississippi, for helping us uncover and address this scheme.”
The case is being prosecuted by Assistant U.S. Attorneys Shubhra Shivpuri and Chris Dippel. The joint investigation was conducted by the Federal Bureau of Investigation, the Louisiana Office of Financial Institutions, the Texas State Securities Board, and the Securities and Charities Division of the Mississippi Office of the Secretary of State.
Healthcare Company Executives Sentenced to Prison for Fraud and KickbacksRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that IMEH U. EBERE, age 55, of Baton Rouge, Louisiana, and SHEILA R. HIVES, age 51, of Baker, Louisiana, have each been sentenced by Chief U.S. District Judge Brian A. Jackson for health care fraud offenses in connection with their roles at Golden Medical Equipment & Supply, Inc. (“Golden”), a Baton Rouge-based company that provided durable medical equipment in the Baton Rouge area. EBERE was sentenced to serve twenty-two (22) months in prison, followed by a two-year term of supervised release, and was ordered to pay $444,061.72 in restitution. HIVES was sentenced to a term of probation and was ordered to pay $7,687.50 in restitution.
In 2012, a federal grand jury indicted EBERE and HIVES, charging them with a variety of offenses arising out of a fraudulent scheme through which EBERE and Golden submitted false reimbursement claims to Medicare for enteral nutrition that Golden had purportedly provided to Medicare beneficiaries. Enteral nutrition is designed for individuals who suffer from health conditions that prevent food from reaching the digestive tract, therefore preventing the individuals from maintaining their weight and strength. Enteral nutrition is administered via a feeding tube.
On July 23, 2014, HIVES pled guilty before Chief Judge Jackson to receiving health care kickbacks, in violation of Title 18, United States Code, Section 1320a-7b(b)(1)(A). HIVES admitted that she received illegal kickbacks from EBERE to induce HIVES to refer Medicare beneficiaries to EBERE and Golden. Approximately one week later, on July 29, 2014, EBERE pled guilty before Chief Judge Jackson to conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1349. EBERE admitted that, through her company, she submitted numerous fraudulent claims to Medicare for enteral nutrition-related products that she had purportedly provided to Medicare beneficiaries, even though the beneficiaries did not have feeding tubes and therefore did not need enteral nutrition and did not qualify for it. EBERE admitted that, from September 2003 through November 2011, through Golden, she submitted approximately $800,000 in enteral nutrition related claims alone.
The case was investigated by the Office of Inspector General for the U.S. Department of Health and Human Services (DHH-OIG), the Federal Bureau of Investigation (FBI), and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office (MFCU), and was 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 Assistant U.S. Attorney Shubhra Shivpuri, with assistance from DOJ Trial Attorney Dustin M. Davis.
Bail Bondsman Sentenced to Prison for Social Security Disability Benefit FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that Chief U.S. District Judge Brian A. Jackson sentenced MACK CHARLES WELLS, JR., age 49, of Zachary, Louisiana, to a year of incarceration, with six months to be served in prison and six months to be served in a half-way house facility. The defendant must also serve a two year term of supervised release following his incarceration and pay $136, 215 in restitution to the Social Security Administration (SSA).
Today’s sentence results from the defendant’s conviction for stealing $136,215 in disability benefits from SSA from February 2007 through December 2011. During that period, while collecting such benefits, the defendant was working as a bail bondsman with “All Day Bail Bonding, LLC” in Zachary, Louisiana. To continue receiving disability benefits, the defendant fraudulently concealed from SSA that he was working and earning an income as a bail bondsman.
U.S. Attorney Green stated: “Theft from government programs designed to help those less fortunate will continue to be a priority of the U.S. Attorney’s Office. Today’s sentence addresses the seriousness of the defendant’s conduct and should act as a deterrent to others who might consider stealing from our nation’s safety net programs.”
This investigation was handled by the U.S. Attorney’s Office and the Office of Investigations, Office of the Inspector General, U.S. Social Security Administration. This matter is being prosecuted by Assistant United States Attorney Lyman E. Thornton III.
Pennsylvania and Louisiana Residents Charged in $2.2 Million Fraud Scheme Involving U.S. Treasury ChecksRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the conviction of one defendant, and the unsealing of an indictment against another defendant, in an ongoing investigation into a check cashing business in Baton Rouge that cashed more than $2.2 million in fraudulently-obtained U.S. Treasury checks during 2012 and 2013.
In one case, ANYELINA REYES, age 36, of Baton Rouge, Louisiana, has been charged in a Bill of Information, filed on July 15, 2014, with conspiracy to steal government funds, in violation of Title 18, United States Code, Section 371. On November 20, 2014, REYES appeared before Chief U.S. District Judge Brian A. Jackson and pled guilty.
As REYES acknowledged in Court in connection with her guilty plea, in 2012 and 2013, she operated a store called “A&R Elite Team, LLC,” which was located on Florida Boulevard in Baton Rouge. REYES admitted that she was aware of a scheme to obtain United States Treasury checks that had been fraudulently obtained and that, after opening a bank account for her store, she agreed to help facilitate the scheme by using her store’s bank account to cash the Treasury checks. From April of 2012 through April of 2013, REYES deposited approximately 370 fraudulently-obtained Treasury checks into her business account, with such checks having a total face value of approximately $2.2 million. After depositing the checks into her account, and after retaining a percentage of the funds for herself, REYES would withdraw the remainder of the funds, in cash, and transmit the funds to her co-conspirators. As a result of her role in the scheme, REYES faces significant incarceration, fines, restitution, and supervised release following imprisonment.
In a related case, ALBELK REYES SERRATA, age 25, of Allentown, Pennsylvania, has been indicted and charged with conspiracy to steal government funds, in violation of Title 18, United States Code, Section 371, and theft of government funds, in violation of Title 18, United States Code, Section 641. The Indictment, which was filed on October 2, 2014 and recently unsealed, alleges that throughout 2012 and 2013, SERRATA also participated in a scheme to obtain fraudulent United States Treasury checks and have them cashed in Baton Rouge. The Indictment further alleges that, in April and May of 2014, SERRATA participated in the theft of (5) additional Treasury checks having a face value of approximately $28,000. SERRATA also faces significant incarceration, fines, restitution, and supervised release following imprisonment.
U.S. Attorney Green stated: “My office takes identity theft and crimes involving fraudulently-issued United States Treasury checks very seriously, especially when millions of taxpayer dollars are at stake. We will continue to work aggressively to investigate and prosecute schemes like these, which not only impact the United States Treasury, but also make it harder for taxpayers to properly file their own taxes and place their trust in the Internal Revenue Service.”
“Individuals who use stolen identities in furtherance of tax fraud, and those who assist in these schemes, will be prosecuted for their actions,” stated Jerome R. McDuffie, Acting Special Agent in Charge, IRS Criminal Investigation. “These cases should serve as a strong warning to those who are considering similar conduct for their own gain. Our agency will continue to work closely with the Department of Justice to protect the integrity of the tax system and protect the public from criminals who use others’ identities for illegal purposes."
This ongoing investigation is being handled by the Internal Revenue Service—Criminal Investigation Division. The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Ryan Crosswell.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Zachary Man Indicted for Conspiracy to Commit Health Care Fraud and Wire FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned a twenty-five count indictment against SEDRIC C. BLAKES, age 42, of Zachary, Louisiana. The Grand Jury charged BLAKES with conspiring with others to commit healthcare fraud and wire fraud, in violation of Title 18, United States Code, Section 1349, as well as with committing multiple counts of healthcare fraud and wire fraud, in violation of Title 18, United States Code, Sections 1347 and 1343. The Indictment also includes a forfeiture allegation which requires BLAKES to forfeit the proceeds of his fraud if convicted.
The Indictment alleges that, from approximately January 2008 and continuing through March 2013, BLAKES engaged in a scheme to defraud Medicaid while employed as the Chief Operating Officer of Extraordinary Care Network, Inc. (“Extraordinary Care”). The Indictment continues that Extraordinary Care was a Baton Rouge-area Medicaid attendant care service provider, which purportedly provided direct support and assistance, including feeding, bathing, and grooming, to the mentally impaired and financially needy, thereby allowing recipients to achieve or maintain increased independence, inclusion in the community, or simply to relieve recipients’ primary caregivers.
As alleged in the Indictment, BLAKES and his co-conspirators submitted fraudulent claims to Medicaid in which they claimed to have provided attendant care services, when BLAKES and his co-conspirators provided no such services. To support the fraudulent claims submitted to Medicaid, BLAKES falsified and/or direct a co-conspirator to falsify recipients’ records to make it appear as though BLAKES, his co-conspirators, or other unwitting Extraordinary Care employees had provided care to particular recipients. Among other instances, BLAKES fabricated and signed fictitious records indicating he had provided attendant care services to recipients in their homes, while the investigation revealed that BLAKES was out of town, gambling at a casino, or elsewhere, at the time of the purported service.
The Indictment alleges BLAKES executed this scheme from approximately January 2008 until March 2013, during which time Extraordinary Care submitted approximately $16,428,814 in claims to Medicaid and was paid approximately $14,796,631.
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 Assistant U.S. Attorney Shubhra Shivpuri and DOJ Trial Attorney Dustin M. Davis.
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.
Tax Preparer Indicted for Tax Fraud and Identity Theft Scheme Involving over 200 Fraudulent Returns Seeking over $500,000Read the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment against TAMEKIA CECILIA HARTON, age 34, of Baton Rouge, Louisiana. The indictment charges the defendant with false claims against the government, in violation of Title 18, United States Code, Section 287, theft of government funds, Title 18, United States Code, Section 641, misuse of a social security number, in violation of Title 42, United States Code, Section 408(a)(8), forged endorsement on Treasury checks, Title 18, United States Code, Section 510(a)(1), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The indictment also includes a forfeiture allegation which requires the defendant to forfeit the proceeds of his fraud if convicted. If convicted, the defendant faces a significant prison sentence, fine, and restitution order, as well as forfeiture.
The indictment alleges that the defendant filed 214 false and fraudulent tax returns between January 2011 and August 2012. The bogus tax returns falsely represented that individual taxpayers had worked for various companies, earned income, had income taxes withheld from their earnings, and were entitled to income tax refunds. The defendant allegedly misused the names and social security numbers of hundreds of taxpayers in order to carry out her scheme. The 214 tax returns requested refunds of approximately $505,709, of which about $346,321 was actually refunded and released. The proceeds of the fraud were allegedly used for the defendant’s personal enrichment.
U.S. Attorney Green stated: “My office will continue to devote the resources necessary to pursue fraudsters engaged in tax fraud and identity theft, and we look forward to continuing to work with our partners at IRS-CI and other agencies in the fight against such conduct.”
“We are pleased with the indictment returned today against Ms. Harton. The IRS will aggressively pursue individuals who use stolen Social Security numbers to file false tax returns,” said Jerome R. McDuffie, Acting Special Agent in Charge, IRS Criminal Investigation. “This case should serve as a strong warning to those who are considering similar conduct. Law enforcement will relentlessly pursue those who steal the identities of unsuspecting individuals; particularly those who are unable to protect themselves.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and was investigated by the Internal Revenue Service-Criminal Investigations. It is being prosecuted by Assistant United States Attorney Rene 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.
Office Manager Sentenced to over 5 Years in Prison for Embezzling $600,000 from Healthcare CompanyRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that Chief U.S. District Judge Brian A. Jackson has sentenced DONNA M. DODSON, age 53, of Baton Rouge, Louisiana, to sixty-three (63) months in federal prison as a result of her fraudulent scheme to defraud one of her former employers. DODSON was also sentenced to make restitution in the amount of $589,680.66 to her victims, to pay special assessments totaling $500, and to serve a three-year term of supervised release following her release from prison. DODSON will also be ordered to forfeit an additional $589,680.66, which represents the proceeds of her fraudulent scheme.
On September 16, 2014, DODSON pled guilty to five (5) counts of wire fraud, in violation of Title 18, United States Code, Section 1343. DODSON had been hired by a local surgical center in 2009 and worked as the company’s office manager until mid-2013. Over that time period, DODSON engaged in a scheme to defraud her employer, by (a) creating false and fraudulent entries in the company’s accounting records and software that appeared to indicate that the company owed money to various third parties; (b) preparing check requests for the false entries she had created; and then (c) fraudulently altering each check request, before the check was actually printed, so that her own name would appear on the face of each check as the “payee.” As DODSON obtained the checks, she would deposit the funds into one of her personal accounts. In total, throughout the scheme, DODSON created and generated more than one hundred (100) checks and fraudulently obtained approximately $600,000.
United States Attorney Green stated: “This case illustrates how much damage a corrupt insider can do to a business. While fraud detection is often focused on external threats, the usual perpetrators of corporate fraud are insiders who abuse their positions of trust to steal from their employers and avoid detection. Such fraud undermines the financial integrity of honest businesses and risks jobs held by honest employees. My office will continue to pursue these important prosecutions and hold corrupt insiders accountable. I appreciate the great work performed in this case by the U.S. Secret Service and the East Baton Rouge Parish Sheriff’s Office’s Financial Crimes Division.”
This investigation was conducted by the United States Secret Service and the East Baton Rouge Parish Sheriff’s Office, with valuable assistance from the Louisiana State Police. The matter was prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief in the Criminal Division.
Gonzales Man Sentenced to 15 Years for Receiving Child PornographyRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that Judge Shelly D. Dick sentenced JASON LOUIS OWENS, age 34, of Gonzales, Louisiana, to 15 years in prison, followed by 5 years of supervised release. The Court also ordered OWENS to pay $2,000 in restitution to one of his victims.
Following an online undercover investigation, on November 28, 2012, investigators from the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”) and the Cyber Crime Unit of the Louisiana Attorney General’s Office executed a search warrant at the defendant’s residence. Through forensic analysis, agents recovered hundreds of child pornography videos on the defendant’s computer and external hard drive. The defendant had obtained these child pornography videos through peer-to-peer file sharing services on the Internet.
This was the second time the defendant has been convicted on child pornography charges in federal court. In 2004, he was convicted for receiving child pornography and sentenced to 24 months in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute 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.
U.S. Attorney Walt Green stated: “My office, together with our federal, state, and local partners, will continue to aggressively prosecute those who actively seek out images of sexually exploited children. Such conduct encourages and supports a level of depravity that must be eradicated in any civil society. We will continue to work closely with our federal, state, and local law enforcement partners to protect the exploited children as part of this important national initiative.”
This matter was handled by the United States Attorney’s Office for the Middle District of Louisiana, the Louisiana Attorney General’s Office – Cyber Crime Unit, and the U.S. Department of Homeland Security - Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Cam T. Le.
Corporation and Two Owners Sentenced for Scheme to Illegally Dispose of Industrial WastewaterRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that Senior U.S. District Judge James J. Brady has sentenced RAM ENVIRONMENTAL SERVICES, LLC, RAYMOND MARCEL, JR., and CYRIL D. ROBICHEAUX, for their roles in a criminal scheme to violate the federal environmental laws.
In June 2013, the three defendants pled guilty to bills of information charging them with a conspiracy to defraud the U.S. Environmental Protection Agency and to violate the Safe Drinking Water Act. In connection with their convictions, the defendants had admitted that, in 2011 and 2012, they conspired with themselves and others to illegally discharge industrial wastewater at locations in Belle River, Louisiana, and Baton Rouge, Louisiana, and to otherwise obstruct the enforcement of the federal environmental laws through kickbacks, the creation and use of false documents, and other fraudulent means.
RAM ENVIRONMENTAL SERVICES, LLC, an entity incorporated in the State of Louisiana and doing business in Morgan City, Louisiana, was sentenced today to make restitution in the amount of $114,969.13 to FAS Environmental Services (“FAS”), based in Belle River, Louisiana, a transportation and disposal company that is primarily in the business of transporting industrial wastewater using a fleet of tanker trucks. RAM was also sentenced to pay a $50,000 fine and a $400 special assessment. RAM was also placed on federal probation for a term of two (2) years.
MARCEL, age 62, of Berwick, Louisiana, was sentenced to a 2-year term of probation, a $1,500 fine, restitution in the amount of $114,969.13 to FAS, and a $100 special assessment. ROBICHEAUX, age 53, of Morgan City, Louisiana, was also sentenced to a 2-year term of probation, a $5,000 fine, full restitution to FAS, and a special assessment.
Today’s sentencing hearings were preceded by the sentencing of Michael J. Vaughn, who was sentenced in October 2013 to twelve (12) months of incarceration at a federal half-way house, a 5-year term of probation, forfeiture of approximately $23,000, and restitution to FAS. In a related case, Roger J. Dies of Zachary, Louisiana is awaiting sentencing as a result of his convictions for failing to report third party wastewater discharges in violation of the Clean Water Act, and obstruction of justice.
U.S. Attorney Green stated, “We will continue to pursue those who commit criminal violations of the federal environmental laws and devote the necessary resources to successfully handle such complex matters. Violators in this district should expect to become convicted felons facing stiff penalties.”
“The defendants admitted they conspired to illegally dispose of huge quantities of industrial wastewaters,” said Daniel Pflaster, Assistant Special Agent-in-Charge of EPA’s criminal enforcement program in Louisiana. “Today’s sentence shows that when businesses and their owners break environmental laws and defraud honest businesses who pay to have their wastes disposed of legally, they will be prosecuted.”
“The sentencing today is a testament to the hard work and dedication amongst our agency and our federal, state and local law enforcement partners, who work together to bring violators to justice,” said DEQ Secretary Peggy Hatch. “The legal handling, treatment and disposal of wastewater are very serious matters, as violations have a negative, direct impact to our health and environment. We will continue to aggressively prosecute individuals and businesses found to be in violation of environmental laws through illegal disposal methods. Anyone with information on illegal activity is asked to contact DEQ and local law enforcement so that we may initiate an investigation as soon as possible.”
U.S. Attorney Green emphasized that FAS ownership was unaware of the defendants’ scheme. FAS terminated the employment of Vaughn, its former operations manager, upon learning of the scheme and cooperated fully.
The matter is being conducted by the United States Attorney’s Office, the Criminal Investigation Division of the U.S. Environmental Protection Agency, and the Criminal Investigation Division of the Louisiana Department of Environmental Quality. The matter is being prosecuted by First Assistant U.S. Attorney Corey R. Amundson, who serves as Chief of the Criminal Division, and Assistant U.S. Attorney Alan A. Stevens, who serves as a Deputy Chief.
Members of Drug Organization IndictedRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of a federal grand jury indictment in Operation Drop the Hammer, an extensive investigation into a drug trafficking network operating in the Baton Rouge and Denham Springs area.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
The following nine individuals have been charged:
- Darryl Q. Cobb, also known as “Hammer Bob” and “Hammer,” age 33, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine and cocaine base; possession with the intent to distribute cocaine; unlawful use of a communications facility; and forfeiture.
- Tabari A. Wilkerson, also known as “T,” age 37, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine; unlawful use of a communications facility; and forfeiture.
- Morgan M. Dillon, also known as “Mo,” age 33, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine base; possession with the intent to distribute cocaine; unlawful use of a communications facility; and forfeiture.
- Thurman Ray Morris, age 57, of Denham Springs, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine base; unlawful use of a communications facility; and forfeiture.
- Gerald Norwood Cobb, age 63, of Denham Springs, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine base; unlawful use of a communications facility; and forfeiture.
- Lashonda Desiree Cobb, age 31, of Denham Springs, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of a communications facility; and forfeiture.
- Dequincy M. Conley, also known as “Dee Dee,” age 39, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base and forfeiture.
- Troy Lee Albert, also known as “Shine,” age 32, of Albany, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base and forfeiture.
- Shabass J. Dantzler, age 25, of Springfield, Louisiana, is charged with unlawful use of a communications facility.
If convicted, each defendant could face significant incarceration, fines, restitution, and supervised release following imprisonment.
U.S. Attorney Green stated: “My office, together with our federal, state, and local partners, will continue to focus our energies and resources on eradicating drug trafficking organizations and the violence that comes with them. To be clear, dangerous drug dealers will find no safe haven within the federal criminal justice system. I greatly appreciate the hardworking team of agents and prosecutors for their tireless efforts during this important operation. In particular, I would like to recognize the tremendous contribution of the late Officer James E. Foster, Jr., Denham Springs Police Department, who recently lost his life in the line of duty while responding to an emergency. In remembering Officer Foster, we are reminded of the sacrifices that law enforcement officers and their families make every day to ensure the safety of our community.”
Joseph Shepard, the Assistant Special Agent-in-Charge of the New Orleans Division of the U.S. Drug Enforcement Administration, stated: “Today’s indictment and arrests stand as a warning to those individuals whose greed drives them to pollute the greater Baton Rouge area with poisonous contraband. The message that law enforcement continues to send to drug dealers is, selling drugs will bring an end to your freedom. DEA and our other federal, state, and local counterparts will remain steadfast in our resolve to rid our community of this clear and present danger.”
Livingston Parish Sheriff Jason Ard stated: “It’s an honor that the hardworking men and women, who make up my Narcotics Division, played a vital role in this extensive investigation. The teamwork between agencies helps to keep us all safe.”
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Agency, the Livingston Parish Sheriff’s Office, and the Denham Springs Police Department, with assistance from the 21st Judicial District Attorney’s Office, East Baton Rouge Sheriff’s Office, Baton Rouge City Police Department, and the Louisiana State Police. This matter is being prosecuted by Assistant United States Attorney Cam T. Le.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.
- Darryl Q. Cobb, also known as “Hammer Bob” and “Hammer,” age 33, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine and cocaine base; possession with the intent to distribute cocaine; unlawful use of a communications facility; and forfeiture.
Suspected Alien Smuggler and Four Others IndictedRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned five (5) indictments arising from an investigation into the transportation of illegal aliens through the Middle District of Louisiana.
Raul Vega, age 60, of Homestead, Florida, was charged in a criminal complaint filed on December 11, 2014, with transporting illegal aliens within the United States for commercial or private financial gain. On December 17, 2014, a federal grand jury returned an indictment charging Vega with the same offense. According to the indictment, on December 10, 2014, the defendant was driving a vehicle on Interstate 12 in Baton Rouge containing a total of ten (10) illegal aliens, including four (4) individuals who allegedly had previously been deported from the United States. Those four individuals – David Raymundo-Matom, Antonio Pedro-Lorenzo, Jose Ramirez-Arroyo, and Gabriel Salgado-Lozano – were also indicted by the grand jury on December 17, and each stands charged with illegal re-entry into the U.S. by a previously-deported alien.
This matter is being investigated by the Baton Rouge offices of the U.S. Border Patrol and the U.S. Department of Homeland Security, Homeland Security Investigations (HSI). This matter is being prosecuted by Assistant U.S. 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.
Baton Rouge Man Convicted of Fraud against Healthcare Entities and False Representation of a Social Security NumberRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that LARRY D. BUTLER, age 49, of Baton Rouge, Louisiana, has pled guilty to two counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and false representation of a social security number, in violation of Title 42, United States Code, Section 408(a)(7)(B), contained in a Superseding Indictment that was returned this past November. BUTLER also agreed to forfeit the proceeds of his fraud.
According to the stipulated factual basis that was presented to the Court in connection with BUTLER’s guilty pleas, BUTLER engaged in a scheme to defraud two healthcare entities – the Louisiana Health Cooperative, Inc. and the Mary Bird Perkins Cancer Center – from July 2013 through August 2014. As BUTLER admitted, he used false credentials, a false social security number, and other false documentation to conceal his criminal history and obtain the pay and benefits associated with being employed by the victims. BUTLER also stole from the victims through the misuse of company credit cards for personal expenses including furniture, travel, and meals. BUTLER acknowledged today in Court that he obtained more than $70,000 through the scheme.
At the conclusion of today’s hearing, the Court accepted BUTLER’s guilty pleas and remanded BUTLER to the custody of the United States Marshal. BUTLER’s sentencing hearing has not been scheduled.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Secret Service, and the East Baton Rouge Parish Sheriff’s Office, along with the cooperation and assistance of the District Attorney’s Office for the Nineteenth Judicial District. It is being prosecuted by Assistant United States Attorney Ryan Crosswell.
Armed Career Offender Sentenced to Fifteen Years in Federal PrisonRead the Press Release
BATON ROUGE, LA—United States Attorney Walt Green announced that yesterday U.S. District Judge Shelley Dick sentenced Joseph D. Melancon, age 45, to fifteen years imprisonment, five years of supervised release, restitution of approximately $42,200, and forfeiture of $40,975.
Melancon was sentenced following his conviction by a jury for conspiracy to steal firearms, possess and sell stolen firearms, and to possess firearms by a convicted felon; stealing firearms from a licensed federal firearms dealer; and possession of firearms by a convicted felon.
In April 2013, Melancon concocted a plan to steal firearms from the Hunter’s Run Gun Club, in Port Allen, Louisiana. He solicited Dustin Ray’s assistance to help him carry out this design. On April 13, 2013, Melancon and Ray traveled together from New Iberia to Port Allen, broke into the Hunters Run Gun Club, and stole approximately thirty-four (34) firearms. The Gun Club was approximately five hundred (500) yards from the West Baton Rouge Parish Sheriff’s Office and the West Baton Rouge Parish Prison. On their return to New Iberia, Melancon sold one of the stolen firearms and used the cash to purchase an amount of cocaine, which he and Ray consumed later.
A short time following their return to New Iberia, Melancon and Ray obtained Jeremy Smothers’ assistance in finding someone willing to purchase the firearms they had stolen from the Gun Club. Later that day, they drove to a location in New Iberia where Melancon and Ray sold most of those firearms to that individual.
On August 21, 2013, Ray pled guilty to conspiracy to steal firearms, possess and sell stolen firearms, and to possess firearms by a convicted felon; stealing firearms from a licensed federal firearms dealer; and possession of firearms by a convicted felon. Ray had an earlier felony conviction for possession of methamphetamine. On October 23, 2014, Judge Dick sentenced Ray to serve forty-eight (48) months in prison, a fine of $1000, and $42,200 in restitution.
On May 29, 2014, Smothers pled guilty to conspiracy to possess, sell, and dispose of stolen firearms. On October 27, 2014, Judge James J. Brady sentenced Smother to serve forty-eight (48) months in prison and pay restitution of $36,775.
U.S. Attorney Green stated: “Today’s sentencing will result in another criminal offender being taken off the streets for a significant amount of time. Convicted felons who steal and possess firearms pose a danger to every one of us. I appreciate all the efforts by the prosecutors and the agents to ensure justice was done and our communities were made safer.”
The investigation in this matter was conducted by the Bureau of Alcohol, Tobacco and Firearms, the West Baton Rouge Sheriff’s Office, and the Lafayette Parish Sheriff’s Office. The matter was prosecuted by Assistant U.S. Attorneys Reginald Jones and Robert W. Piedrahita who serves as Litigation Counsel.
Colorado Men Sentenced for Flying More Than 70 Pounds of Cocaine to Baton RougeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that Chief U.S. District Judge Brian A. Jackson has sentenced VINCENT SALZANO, age 57, and ARMANDO SALZANO, age 33, both of Denver, Colorado, to lengthy prison terms for their roles in attempting to transport more than seventy (70) pounds of cocaine through Baton Rouge on a private aircraft.
VINCENT SALZANO was sentenced to serve sixty (60) months in federal prison following his conviction earlier this year for possession with the intent to distribute five (5) kilograms or more of cocaine, in violation of Title 21, United States Code, Section 841(a)(1). VINCENT SALZANO was also ordered to serve a 3-year term of supervised release following his release from imprisonment and pay a $5,000 fine. ARMANDO SALZANO was sentenced to serve forty-eight (48) months in federal prison, to be followed by a 2-year term of supervised release. ARMANDO SALZANO was also ordered to pay a $30,000 fine. The defendants were ordered to forfeit any and all property used to commit the offense.
Today’s sentences follow the defendants’ arrests in October of 2013 at the Baton Rouge Metropolitan Airport. On October 7, 2013, the defendants met and boarded a private plane, which VINCENT SALZANO controlled, which had been flown to Atlanta, Georgia at his direction. The following day, the defendants flew from Atlanta to the McAllen, Texas area, where they deplaned, left the airport, and obtained approximately 30 packaged bundles of cocaine. The defendants then re-boarded the plane, carrying the cocaine and intending to travel back to Atlanta. The plane stopped in Baton Rouge for fuel, at which point the SALZANOS were contacted by law enforcement agents and arrested. Both defendants pled guilty earlier this year.
The investigation is being conducted by the United States Attorney’s Office, the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Customs and Border Protection, and the Louisiana State Police, with assistance from the West Baton Rouge Parish Sheriff’s Department, the Federal Aviation Administration, and other law enforcement agencies. The matter is being prosecuted by Assistant United States Attorneys Alan A. Stevens and James P. Thompson.
Baton Rouge Man Sentenced to Fifteen Years for Child Pornography OffenseRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that Chief Judge Brian A. Jackson sentenced BRADLEY BOURQUE, age 33, of Baton Rouge, Louisiana, to a term of imprisonment of 180 months, to be followed by ten years of supervised release. The Court also ordered BOURQUE to pay $1,000 in restitution to one of his victims.
Following an online undercover investigation, on April 20, 2013, state and federal agents from the Louisiana Attorney General’s Cyber Crime Unit and the U.S. Department of Homeland Security – Homeland Security Investigations executed a search warrant on BOURQUE’S residence. During the search, agents discovered hundreds of child pornography images and videos on BOURQUE’S computer and external hard drive. Through the course of the investigation, agents determined that BOURQUE had obtained many, if not all, of these child pornography files through the Internet.
Prior to this federal conviction, BOURQUE had previously been convicted of solicitation of a minor via computer under Florida state law and indecent behavior with a juvenile under Louisiana state law.
U.S. Attorney Walt Green stated, “This conviction and sentence should signal the United States Attorney’s Office’s commitment to aggressively prosecuting individuals who actively seek out images of sexually exploited children.”
This matter was investigated by the Louisiana Attorney General’s Office – Cyber Crime Unit and the U.S. Department of Homeland Security - Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Chris Dippel.
Baton Rouge Man Indicted for Mailing Threatening Letters to Federal and State CourthousesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the filing of an indictment returned by a federal grand jury earlier this week that charges BRIAN CAVALIER, age 33, of Baton Rouge, Louisiana, with two (2) counts of making threats by mail, in violation of Title 18, United States Code, Section 844(e). If convicted, the defendant could face significant incarceration, fines, restitution, and supervised release following imprisonment.
The indictment alleges that on or about November 1, 2013, CAVALIER 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. According to the indictment, approximately one month later, on or about December 2, 2013, CAVALIER 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.
U.S. Attorney Green stated: “My office takes threats to the safety and security of our community’s judicial and governmental offices very seriously. Specific and credible threats not only disrupt the functioning of our government and affect the daily lives of many individuals who live and work in our community, but they also divert law enforcement resources from more critical missions.”
This matter is being investigated by the Federal Bureau of Investigation, working in close coordination with the Baton Rouge Fire Department, the East Baton Rouge Parish Sheriff’s Office, the Louisiana State Police, and other law enforcement agencies. The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division.
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.